Monday, August 20, 2012

What is Selling Price in Real Estate Investing

The selling price or the asking price is simply the price at which a property is offered for sale in the open market. It is based on the Fair Market Value (FMV) of the property.

Generally, the selling price is set slightly higher than the market value usually 1 to 3 percent above the market value. This is to give room for negotiations with the buyer. Be careful though with overpricing you home because this could mean fewer showings and less offers from potential buyers.

In selling your house, you'll want to establish your priority list: Are you more concerned with selling quickly or getting the most money possible? You'll also want to contemplate whether you think the agent's suggested price is reasonable and whether you'd pay that amount if you were a buyer.

Your agent, as well as friends, relatives, and neighbors, will help you point out your house's advantages and disadvantages that you may not have thought about because you're too close to the house and not as objective as others.

A third party will help you think of your house as a commodity—something with positive and negative selling points. At that point you can decide on a price that you deem competitive and in line what other houses in your area have sold for.


Source :

http://www.realtor.com

Friday, August 17, 2012

What is Fair market Value?

Fair market value (FMV) is an estimate of the market value 
of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market

The fair market value establishes a realistic price if the asset was sold in the existing market conditions. Once the fair market value is determined, an owner can establish a selling price or a recipient can obtain the appropriate cost basis for a donation or an inheritance. Without an accurate calculation of the fair market value, risk of loss or tax liability increases.

Source : 


Wednesday, August 15, 2012

What is Zonal Value?

I've met the words selling price or purchase price, zonal value and fair market value. Are these three terms similar? I'm confused about the difference of these three terms. There seems to be a thin line separating these three terms.

Let's start with the Zonal Value.

Zonal value is the amount set by the Bureau of Internal Revenue (BIR) with the assistance of realtors, and other knowledgeable persons in the area as the basis for computing taxes. Therefore, zonal values are purely for taxation purposes only. It has nothing to do with the true market value of the property. Zonal value is not an accurate basis when appraising a real property. When applying for a loan in a lending institution, and this especially true with commercial banks, their appraisers rely on the zonal valuation which is much lower than the market value.

Zonal valuation is fixed by the government and re-assessed from time to time. "Much lower" means only a third or even a quarter of the market value.

Zonal valuation is done in order to :

1. establish realistic values of real properties which can more or less approximate the present fair market values  of real properties  as basis for computing the capital gains tax, documentary stamp tax, estate tax of the donor’s tax due when the property is sold or transferred; 

2. have an efficient tax administration by minimizing the discretion both by the tax administrators and the taxpayers in the determination of the tax base.

The BIR assigned zonal values only to :

•  Land
•  Condominiums
•  Townhouses ownership of which are evidenced by a Condominium Certificate of Title (CCT)
•  For purposes of computing all internal revenue taxes (capital gains tax, creditable withholding tax, documentary stamp tax, estate and donor’s taxes, etc.) due on sales, exchange or other dispositions of real properties, the zonal value established shall apply provided the same is higher than :

(1) the fair market value as shown in the tax   
declaration, and
(2) the gross selling price / consideration as shown
in the duly notarized document of sale or
exchange of real properties.

Furthermore, the zonal value is not the only basis for computing the applicable taxes. The Fair Market Value (FMV) and gross selling price are also considered. Whichever is highest among the three will become the basis for the computation of applicable taxes.

If you want to know the zonal values of a particular property your eyeing, please click the link below. 

Seminar on Real Estate Investing : Think Rich Pinoy Workshop

One of the most important thing to do before entering a new venture is gaining enough knowledge about the new venture you want to enter to. One way to do this is attending relevant seminars.

This September 1, 2012, I'm going to attend the Think Rich Pinoy Workshop and I'm excited because I would be able to play the famous game of Robert Kiyosaki which is the CASHFLOW 101. I could only read about this game from books, articles and blogs. But because of this seminar, I would be able to play it first hand. I hope I would be able to get out from the rat race. (^_^).

Not only CASHFLOW 101 but there are a lot more blessings we could get from this seminar.

I'm sure I would learn so much from here.

If you're interested in this seminar and want to avail please click the link below. Only limited seats are available . They could only entertain 100 persons per batch.



Friday, August 10, 2012

How to Appraise a Real Estate Property

I have a question in mind. I wonder how do investors determine the true value of a property.

I learned that if you want to know the true value of a real estate property, you could hire a licensed real estate appraiser or you could do it yourself. Hiring an appraiser could be an easy alternative but this would require additional cost on the investor. Doing it yourself could be better. But of course, this also requires continuous learning and more experiences in order to appraise a property correctly.

I came across a video about how to appraise a property from foreclosuredeals.com. With continuous learning and experiences, we could learn how to appraise our own property or the property we want to buy or invest in.

Here are the steps on how to appraise a property.

1. Fully understand the meaning of a house appraisal.
2. Calculate the house's square footage.
3. List the amenities of the house.
4. Research recently sold properties.
5. Cull your list according to similarities.
6. Determine your house's appraised value.

Wednesday, August 8, 2012

Modified Peso Cost Averaging Method

Investing in the stock market is fun especially when you see your money slowly builds up. For some time now, I’m using the peso costaveraging method together with the strategic averaging method of the Truly Rich Club.

I noticed that within a year, there are times when the market slows down. No one knows when that time is because this is dictated by the prevailing market conditions at the time. Like for instance in the month of May when suddenly the Philippine stock market went down. This had lasted for more than a month.

During these times, investors like us go shopping because there are more great companies which are on sale. This means we can buy our favorite companies at a great discount. We could buy more shares with our money.

But during that time I was somehow frustrated because there are so many companies which are on sale but I don’t have that much money to buy them. My money was just limited to that certain amount I deposited in my Citiseconline account every month.

So I decided to modify my method of investing.

What if, every month I still save a part of my salary for my investment in the stock market and deposit it in my Citiseconline account which is the same as to what I’m doing before. The difference is, since I am a long term investor I will just leave my money in my account. I won’t buy stocks for the meantime especially if it’s a bull market. So my money will be accumulated in my account.

When the stock market dips, that’s the time that I will buy stocks of my favorite companies. I will now have more funds to invest which means I will acquire more stocks. Since I had already acquired some stocks of my favorite companies before, I could easily monitor their stock prices. I will be guided further by Bro. Bo’s stocks update in the Truly Rich Club.

If you want to prosper in your financial, personal and spiritual life, join the Truly Rich Club now.

Monday, August 6, 2012

Having a Break in Photography



I thought of having a break from serious matters and just relax and have fun with my photos.

I personally took these photos. I love taking photos of nature though I'm not an expert yet. This is far from investing but I just want to share them. I hope you like it.

It's far from the skyscrapers in the cities, highways, cars, pollution and other life's luxuries. It's just simply as it is. It's relaxing.

We're located in the mountain overlooking the valley. I woke up one morning, took my camera and off I went taking photos of anything.



I was captivated by the snow white fog that covers the mountains as well as the valleys below early in the morning. As the sun rises in the east, it slowly vacates the mountains and valleys giving way to the grandeur of the great sunrise.


This is the picturesque view of the road leading to town. 


And this is the mountain trail we used to hike when we were younger. I suddenly miss home.

I have more masterpieces here.(^_^).

Friday, August 3, 2012

Robert Kiyosaki's 6-Step Guide to Investing in Properties

I stumbled upon this video about Robert Kiyosaki talking about the 6 steps as guide to investing in properties. This is a help for those like me who want to venture in real estate investing.

6 Steps :

1. Decide to be an investor.
2. Find an area.
3. Identify properties.
4. Analyze, offer, negotiate.
5. Put together the deal.
6. Property management.

Here's the video uploaded by Property Agent Kevin.

Thursday, August 2, 2012

How to Join the Truly Rich Club

Everyone of us wants to be wealthy. But most of us are confused on how to answer the question WHY. This is because there were wrong beliefs that were deeply ingrained in our subconscious since childhood. One example is that MONEY is EVIL. Another is that RICH MEN are BAD people and therefore God only favors the poor. This is why we subconsciously chose poverty.

One thing that I learned from being a Truly Rich Club member is that nothing happens until you make an effort to change your beliefs because this is where all radical changes begin. In order to change our beliefs especially about MONEY, we need constant immersion into a new way of thinking to form a new mindset.

Joining the Truly Rich Club will help us in our journey towards creating new mindsets that will lead us to attain financial and spiritual abundance.




Here Are The 11 INCREDIBLE BLESSINGS You Will Get For FREE When You Join The Truly Rich Club (Value : $251.50)


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