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Cheap Flights Boost Malta Holiday Market For 2007

Tue, 09 Nov 2010 09:12:31 +0000

Cheap Flights Boost Malta Holiday Market For 2007

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Home Page > Travel > Flights > Cheap Flights Boost Malta Holiday Market For 2007

Cheap Flights Boost Malta Holiday Market For 2007

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Posted: Feb 13, 2007 |Comments: 0

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Advantages and Disadvantages of Factoring & Asset Based Lines of Credit

Sun, 07 Nov 2010 09:11:43 +0000

What is Asset-Based Lending?

Asset-based financial services organizations (asset-based lenders) play a vital part in financing the economy and are dedicated to the growth and well-being of their clients. They provide their clients with cash by lending on fixed assets, accounts receivable and inventory, and engage in factoring, purchase order financing, real estate financing and leasing. They include the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations.

Expert in all facets of collateralized lending, asset-based lenders – large and small alike – possess the experience and know-how to structure the proper financing program for their borrowers. They specialize in financing businesses and business transactions involving a broad range of products and services, both domestically and internationally. They provide:

Operating cash

Funding for an acquisition, a merger or a leveraged buyout

Debt consolidation

Turnaround financing

Bankruptcy/reorganization financing

Equipment financing

Inventory financing

Floor plan financing

Equipment leasing

Import/export trade financing

Growth financing

Factoring services

Growth Money

Businesses need money to grow. A business cannot survive just because it has a better product, an exclusive market or the best method of distribution. The catalyst required for progress is money.

Business owners and managers must be knowledgeable about financing, what it can do, why one form may be better than another. It can be used when:

Operating cash is tied up in receivables

The best trade terms for supplies create cash flow shortages

Inventory levels are high because of client demands

Sales growth is straining resources

Seasonality peaks cause problems

No fixed assets are available for collateral

Trade discounts and special pricing terms cannot be obtained

Letters of credit are required to supply or buy overseas

Debtor-in-possession financing is required

Asset-based lenders often advance funds when traditional sources are not available. They are familiar with various types of businesses and are responsive to client needs.

Loan size

Asset-based lenders fund businesses with annual sales less than $25,000 to more than $1 billion. Credit depends on the type of business and the content and quality of the collateral. Frequently, the credit granted is more than the net worth of the business.

The increased cash availability provided by asset-based lenders often makes the difference between profitable growth and failure for the undercapitalized business.

The phrases “too small,” “too new,” and “not enough net worth,” do not deter an asset-based funding source.

The flexibility and cash availability provided by asset-based financing have enabled countless companies to grow and take advantage of market opportunities.

Cost

The cost of asset-based loans is influenced by the credit risk and collateral associated with the transaction. When evaluating an asset-based loan, borrowers should assess the cost of financing in the context of the benefits to be received. Compared with other financing alternatives, asset-based lending is very cost effective and efficient.

Asset-based lenders frequently look beyond financial statements to determine how much money they are prepared to advance at and after closing. Therefore, borrowers can take advantage of profit opportunities in the market by being able to plan ahead based upon their cash availability.

Asset-based lenders are proactive rather than reactive and can often restructure debt during tough times to help avoid costly and disruptive refinancing.

Over the long haul, the benefits will tend to offset the premiums associated with borrowing from the asset-based financial services industry.

Types of Asset-Based Financing

Secured lending

The lender provides funds secured by the assets of the borrower. The collateral can include: accounts receivable, inventory, machinery, real estate, patents, trademarks or other assets where value can be determined.

The secured lender may establish a revolving loan where the borrower provides a pool of collateral that the lender translates into operating cash or working capital. The borrower uses the financing to buy more materials, expand marketing, improve productivity or other improvements and sells the resultant product. The sales create receivables that are pledged for cash advances and the payments received on the invoices pay down the loan. These increases and reductions in the loan balance are cyclical, hence the revolving nature of the loan.

Some receivables have less collateral value, for example, progress billing, past due receivables, and receivables subject to “set-off”. Raw materials and finished goods are normally acceptable collateral, but work-in-progress generally is not. Equipment and real estate may also be used as a source of financing.

Non-recourse factoring: The financing institution buys the receivable and assumes the risk of customer credit. The factor guarantees against credit loss, unlike a secured lending facility. The factor will also check credit, undertake collection and manage bookkeeping functions.

Full-recourse financing: The financing institution accepts assignment of the receivable but does not assume the credit risk. The client retains responsibility for managing the receivable portfolio. Generally, the lender will finance invoices up to ninety days from delivery of goods or services, then charge them back to the client.

Discount factoring: The factor purchases the receivables at a discount to compensate for paying prior to the due date.

Maturity factoring: The factor purchases the receivables, assumes the credit risk and advances cash to the client as the invoices mature.

Non-notification factoring: Account debtors are not notified of the sale of the receivables and the invoices are either paid to a lock-box or to the shipper. This is similar to a receivable loan.

Notification factoring: Account debtors are notified of the purchase of the receivables and are directed to make payments to the factor.

Spot factoring: A “one shot” transaction, generally out of the normal course of business.

Floor plan financing: Certain industries require significant high-priced finished goods inventory. Examples: automobiles, refrigerators, washing machines, televisions and stereo systems. These are supplied on extended credit terms to retailers. Retailers usually do not purchase this expensive inventory outright; rather a finance company will provide credit to purchase the inventory, secured by the product “on the floor”.

Leasing: The lessor purchases the equipment needed to fulfill certain obligations and the equipment remains the property of the lessor even after all the borrowed funds are repaid; or existing assets are sold to and leased from a leasing company to release capital needed for working capital purposes.

Purchase order financing: Working capital financing is secured by a security interest in existing purchase orders and the proceeds of the purchase orders. Normally the security interest is perfected by the lender taking possession of the inventory or raw materials.

Real estate financing: the mortgaging of land and/or buildings to raise working capital.

More about factoring

The origin of the factoring industry has been traced to the days of the Roman Empire or even earlier, but the industry as we know it today in the United States goes back only about 200 years to the early nineteenth century.

Factors evolved from U.S. selling agents for European textile mills. The European mills used the agents to sell their fabrics in the U.S. and paid the agents a commission on sales. The agents also warehoused merchandise and did the shipping for their European clients. As these selling agents prospered and became more familiar with their own customers, they began taking on the job of establishing credit terms and advancing funds to the European mills. The oldest documented factoring firm traced its roots to 1810 and several others were established in the first half of the nineteenth century.

Traditional or old-line factoring is fairly straightforward and is designed for long-term relationships. It involves the purchase of receivables without recourse and with notification to the client’s customer. The factor buys the receivables created by a client’s sales and then collects the proceeds directly from the client’s customer. After the factor buys a receivable, it assumes the credit risk on that receivable. If the client’s customer doesn’t pay because of a credit problem, the factor must assume the loss.

Essentially, an old-line factor offers its clients credit protection, collection, bookkeeping services and financing. In addition to advances against receivables purchased, once a relationship is established, factors often provide clients with over-advances during peak shipping seasons. Factors also offer financing services and accommodations such as inventory loans, letters of credit/import financing and equipment financing. Export financing is also available through alliances with international factoring networks. Principally because credit guarantees are important in textiles and apparel and because of factoring’s roots in the textile industry, about 70 percent of the volume of old-line factors is still in textiles, apparel and related industries.

Since the factor takes the credit risk on the sale, it must first approve the sale through its credit department. Thus, the client is relieved of the cost of running a credit department. Because of the credit guarantee, old-line factoring is limited to industries in which credit information is available. The charge for the credit and collection service, called the factoring commission, varies with the sales volume of the client, the size of the transactions and competitive conditions.

The economic rationale for the factoring service is fairly obvious. With thousands of suppliers selling to the same customer, without factoring, each seller would have to do its own credit appraisals and collections. This involves an incredible duplication of effort. With factoring, a single credit department operating for hundreds or thousands of suppliers, eliminates much of the duplication and promotes efficiency. And with the aid of electronic data processing, the cost of the credit and collection operation has been reduced exponentially and the savings are passed on to the client. Technology has revolutionized the industry, eliminating tons of paperwork and providing clients with valuable on-line information. The system can generate a host of reports on sales analysis and other information to help a client analyze its own business.

It should be noted that the factor’s guarantee, is a credit guarantee and does not apply to anything other than the financial inability of the client’s customer to pay. The guarantee does not apply to merchandise disputes between the buyer and the seller. If the receivable is not paid because of buyer claims of defective merchandise or untimely delivery or any other dispute involving the merchandise or its delivery, the factor will look to the client (the seller) for reimbursement.

The credit and collection service is just half of the business of the old line factor. The other half, and for many clients, the more important half, involves advances of funds against the purchased receivables. If the customer wants a cash advance, it can borrow from the factor. The interest on the loan is in addition to the commission and is usually at a rate competitive with the cost of a comparable bank loan.

Many factoring clients are maturity or non-borrowing clients. They wait until the purchased receivables are paid and then may collect the proceeds from the factor. If the client leaves the funds with the factor after collection, the factor will pay interest on the balances at a rate comparable with the factors’ cost of funds. These balances may be drawn upon when needed.

Traditionally, factoring was done on a notification basis. The client’s customer is notified that the account has been turned over to a factor and the customer’s payment should be made directly to the factor. However, a non-notification agreement can be worked out. The factor would still purchase the receivables outright after doing the normal credit check of the customer, but the customer wouldn’t be notified that its account has been sold. If the client borrows money, customer payments in non-notification accounts are usually sent to lock-boxes which the factor administers.

Aside from old-line factoring, there are as many variations on factoring as there are entrepreneurs who choose to use the name. There are commercial finance companies, some of which call themselves factors, single-invoice factors, purchase order factors, recourse factors, invoice discounters and re-factors.

• Commercial finance companies do not provide credit guarantees, but lend against collateral, principally receivables and inventory, and are an offshoot of the factoring industry and go back to the beginning of the twentieth century. Largely because the commercial finance companies operate in diverse industries in contrast with traditional factoring which is still largely married to textiles and apparel because of the need for credit guarantees in those industries, it has grown much more rapidly than traditional factoring. Rather than purchasing receivables, commercial finance companies take assignments of receivables as collateral for loans. The client collects the receivables proceeds and uses the funds to pay down the loan. Defaulted receivables are the client’s problem (but could be the lender’s problem if defaults are substantial). The lender normally provides enough of a cushion so that if the client fails to repay the loan, the collateral can be liquidated and provides full payment.

• Single-invoice factors provide essentially the same services as the old-line factors but they do it one invoice at a time. Also, there are very few non-borrowing clients for single-invoice factoring because a company that factors a single invoice usually is motivated by the need for financing.

• While factors finance receivables after they are created, purchase-order factors provide financing so clients can fill orders that they cannot finance on their own. Once the order is filled and is converted to a receivable, a traditional factor might purchase the receivable and cash out the purchase order factor.

• Recourse factors are usually small factoring companies that purchase receivables often in non-traditional industries where credit information is not readily available. They buy the receivables but those that are unpaid are charged back to the client.

• Invoice discounting is similar to the recourse factoring and is prevalent in England and some other European countries. The invoice discounter buys receivables, but rather than focusing on the credit worthiness of the client’s customer, they concentrate on whether the contract creating the receivable allows sale or assignment. Non-paying receivables are charged back to the client.

• Re-factors provide the same services as old-line factors, but they work with small companies, sometimes with sales volume as low as $500,000 (generally large factors need at least $3 million in volume). The re-factors provide the financing, but use the services of traditional factors to handle the credit checking and credit guarantees. They make their money from interest on money advanced and a spread between the re-factors commission cost and what it charges its own clients.

Accessing finance can be a real problem for many small businesses, especially if they are growing fast. One option many businesses don’t consider is factoring, or cash-flow lending as it is sometimes called.

While not suitable for every business, factoring can provide a revolving line of credit and a reduction in administrative costs.

Factoring involves the sale of a business’ book debts on a continuing basis. Usually, the factoring firm will buy the business’ sales invoices at a discount of between 70 and 90 percent. The factor then collects the invoice amounts from the business’ customers. The business receives the cash, less the discount, from a credit sale quickly (usually within 24 to 48 hours) and maintains a healthy cash-flow even though the debtors may not pay for the sale for another 60 days or so.

Usually, the factoring firm takes the difference as profit; however some factor companies prefer to provide a percentage up front, the remainder on collection, and charge interest and fees on the transaction.

The use of credit cards in the retail industry is a form of consumer factoring, where the retailer is paid immediately for goods or services and the credit card company collects the payment from the customer. Some US banks offer asset-based cash-flow lending but have generally found limited interest in the products – with many businesses put off by higher interest rates charged to reflect the risk of lending against assets not secured by property.

Several Options

Factoring firms can offer several levels of service. The premier service usually involves taking over the complete management of the business’ accounts receivable, including administration, confirmation, and collection of invoices, regular reports and monthly ageing reports on all accounts processed.

This is usually coupled with a seamless, confidential service, where the customer of the business is unaware of the relationship between the business and the factor and all communication between the factor and the customer is branded as the business. In other cases, the factor may only take over aspects of the accounts receivable function.

The level of service provided by the factor is often related to the value of the debtors book.

While it may appear complicated at first, outsourcing accounts receivable can significantly reduce costs. More importantly, it is particularly useful for businesses that are growing or moving in a different direction with a view to improving profitability. A growing business can quickly outgrow an overdraft secured by fixed assets, yet it may not be able to obtain finance on an unsecured basis.

A business may also need the flexibility to cover sudden increases in order levels. Factoring provides funding in line with sales growth.

This form of finance can also be useful for start-up businesses that need to pump cash back into their business to build their inventory, but have difficulty obtaining overdraft or working capital facilities due to a lack of trading history.

Service, manufacturing and wholesale businesses are often suited to this type of finance.

Businesses that mainly sell on cash terms to the general public may find credit cards or overdrafts more cost effective. Those with complex products or terms of sale such as trial and return clauses or those in the construction industry, where customers are invoiced in stages, are also less suited to factoring due to the complexity of the supplier/customer relationship.

Pros & Cons

As with all business finance, factoring offers advantages, disadvantages and potential pitfalls.

The level of benefit from factoring will vary from business to business.

But it usually provides:

* Immediate cash-flow access to 70-90 percent of the value of debtor invoices.

* Working capital for growth without requirements for a strong balance sheet or substantial net worth.

* A good interface with the supplier and, as a result, a seamless transaction for the customer.

* Outsourced debtor administration and associated cost savings.

* The ability to increase sales by offering credit which the business may have been unable to fund otherwise.

* The ability to take advantage of creditor discount terms, improve credit rating by being able to pay creditors promptly and an enhanced ability to capitalize on larger orders as required.

* The option to free up property from being tied as security.

Some issues that should be considered if looking at factoring as an option include:

* Complexity. Rather than simplify the account-keeping, factoring may add complexity to the business depending on the level of integration of account-keeping processes.

* Culture. If the culture of the business and the factor are at odds, the arrangement may interfere with the relationship with customers.

* Bad Debts. In most cases, the business still wears the non-collection risk and may end up following a restrictive process to maintain the facility.

* Cost. It can be expensive depending on the interest and costs charged by the particular firm such as finance charges, administration charges, mailing charges, etc.

* Asset control. Some factors take a floating charge over all the business’ assets not just debtors. Consequently a business may need to obtain a release from the factor to sell any of its assets.

* Value. The factor may only finance a percentage of the debtor value and may undertake its own audit of the business’ accounts.

* Customer relations. Some factors will take over the entire debtor ledger which may cause difficulties if a business wishes to remain in control of some accounts that are particularly sensitive or vital to the business.

* Security. Some factoring firms now require small businesses to provide property as security in which case it may be cheaper and more effective to arrange a bank overdraft.

One of the most common traps for small businesses using factoring is the assumption that outsourcing the function means outsourcing the responsibility.

The benefit of using a factoring facility still depends on good management of debtors and the finances of the business. Every business must manage their terms of trade, and ensure the terms they offer and the credits they receive are appropriate for their particular business. They need an effective debt collection system and simple internal controls to prevent errors.

Factoring could cause additional problems for businesses without a good handle on cash-flow management and cost budgeting. They may find themselves in a downward spiral, spending debtor receipts on current overheads and not paying the current creditors and then wondering what went wrong. They need to understand the money flow of the business and use short-term funding such as factoring on short-term assets.

With good management, the use of factoring can be a very useful source of finance particularly for a young business that is growing fast. However, there are plenty of traps for the unwary, and as always, if in doubt get advice before committing to any form of finance.

www.greggfinancialservices.com

Mr. Elberg is a licensed attorney and licensed real estate broker. Gregg Financial Services is a full service brokerage for commercial finance companies and banks that fund B2B businesses. Mr. Elberg arranges funding from $25,000 to $50 million per month at competitive pricing, and works to reduce your financing costs as your company grows. For more information about GFS, please visit our website: www.greggfinancialservices.com or email:gregg@greggfinancialservices.com

Magicbricks.com Presents India?s Property Fair in Dubai

Sat, 06 Nov 2010 09:12:19 +0000

India’s expatriate diaspora population that is estimated at over 12 million in the Middle East, to address their growing demand to re-settle in their homeland, MagicBricks.com, India’s No.1 Property Portal is organizing the MagicBricks.com India’s Property Fair in Dubai on March 9th and 10th, 2007 at the Jumeirah Ball Room, Hotel Crown Plaza.

Participant delegates will get a highly flexible and dynamic platform to generate sales leads and showcase their new projects through this mega India- specific event. MagicBricks.com India’s Property Fair in Dubai is just the right opportunity to attract Indians and India friendly investors, be it for building long term branding or maintaining customer relations. The current real estate market in India is worth $16 billion and estimated to reach $60 billion by 2010, no wonder heavyweight investors from across the world are making a beeline to India.

“Some of our brightest students have gone abroad and done well in the advanced fields of research. Many of them have been returning home for varying periods of time as visiting faculty at the institutions in India. Many are taking up work assignments in private sector research institutions and companies. This reverse brain drain must be encouraged,” the Prime Minister said in October 06.

Engineers, technology workers, retail professionals, domain specific consultants are coming back to India with competitive international salary benchmarks which were unheard of even few years ago.

Along with telecom, logistics, software technology reverse brain drain is fast picking up in organized retailing also. Indian professionals working in Middle East markets like Dubai and Sharjah are in high demand by the booming Indian economy. Reverse Brain Drain has been increasing at an accelerated pace in the last three years since the GDP growth rate of the country went above 7.5 %. The very same people who went to abroad are planning a grand return back home.

Returnees say that with the proliferation of western amenities, from air conditioning to consumer electronics to shopping malls, they have found that the lifestyle they are used to abroad is now available in India.

“From a professional point of view, I felt until recently that I had more challenging prospects overseas,” said P.P. Singh ’’But that’s no longer the case. Just in the last couple of years, three or four of my close friends made the move from UAE to India. India feels in many ways like what Dubai felt – boom time.”

For some Indians, the reasons for the exodus are personal. Returning expatriates may have aging parents, or they may want their children raised in the Indian culture. With the explosive growth of India’s economy, cities such as Delhi, Bangalore, Mumbai or Hyderabad increasingly are seen as new magnets for ambitious professionals– offering an intoxicating mix of hefty raises, multiple job postings, and rapid career advancement.

There will be an abundance of properties to choose from, brought by the best and most illustrious Developers, Builders, and Brokers at the MagicBricks.com India’s Property Fair. Some of the Big Names participating include Confident Group, Omaxe, Unitech, Yaksh International, Ekta supreme, Disha Direct, RSK paradising developers, Saraf Developers, Wadhwa developers, Ravi Raj, Om Sai Builders, MR enterprises, Akshar developers, Amit Enterprises, Omega, Grip Estate, Naik Naware, Multicon developers, Classic Enterprises, DS Kulkarni developers, Dua Associates, Space International, Bhandari Properties, JJSR, Chattels, Wadhwani constructions, Kunal Group and Daya Realty.

MagicBricks.com is set to provide property-seekers in Dubai with the amazing experience of a Landmark Real-Estate Property Fair with this event.

Don’t miss this Amazing Opportunity to reach out to India’s expatriate diaspora population that is estimated at over 12 million in the Middle East.

For more information on Real Estate Agents, MLS visit Propertiesmls.com

Source: IndiaRealEstateblog

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Malta Holiday Hopes Boosted For 2007

Fri, 05 Nov 2010 09:12:16 +0000

With an awful 2006 out of the way, 2007 is looking brighter for the Mediterranean holiday island of Malta with an upswing expected in holidaymakers and weekend visitors.

‘There have been some complaints from islanders’, comment one Malta travel guide, ‘that the government or the airport authorities have helped Ryanair, and that their costs could be lower than other airlines have had to pay in the past. But to be honest, compared to the millions poured into the tourist board that has produced declining visitor numbers, it’s a drop in the Mediterranean and money well spent compared to the authorities past lame efforts of their own.’

Official statistics appear to bear this out.

Ryanair started their London Luton to Malta service in November. Tourist numbers have picked up year on year since then. In the month before the airline started cheap flights to Malta tourist numbers dropped by some ten per cent.

Maltese Property Prices Rise

With the arrival of more holidaymakers, the possibility of increased property sales to overseas buyers becomes more of a reality.

One UK based company specialising in Malta property agree that property prices could rise in 2007.

There is a warning however from the travel guide that property prices on the island might not necessarily escalate in the same way that regions of France have seen when low cost airlines have started flying to their region.

‘The real winners from the low cost flights could be the Malta hotels rather than the property industry’, conclude the travel guide. ‘We envisage a lot more people taking short three and four day Malta holidays, often booking their flights and hotels on the internet rather than via a traditional high street travel agent chain’.

YourMalta.com produce an on-line guide for Malta which includes hotels in Malta and Malta flight details.

Be Blister-free On Your Outdoor Vacation

Thu, 04 Nov 2010 09:15:07 +0000

Rather than lengthy travel overseas or costly vacation rentals along a popular beach, you have decided to try an outdoor vacation. From the many choices of outdoor vacations available, from kayaking to authentic dude ranches, you have opted for a simple hike through a beautiful forest or wilderness. Depending on the location, you may simple get in the car and drive to a nearby state park or forest after which you will find yourself amidst beautiful scenery away from the nearby urban environment.

So, after a few hours you have been on the trail and decide to make your way back. You have several miles to go, but realize you have blisters. This can turn an enjoyable hike into misery.

Blisters result from the friction between your sock and skin and, therefore, the inside wall of your boot. The best hiking boots and socks can even allow for slippage of the foot inside the boot, that which can lead to potential for blisters caused by the painful friction.

A good pair of socks can help minimize this problem. Though cotton, silk and wool are some of the more common materials, hikers today have a variety of choices. When combined with traditional materials, Lycra and some polyester materials can do a good job as well.

Other features of socks are important to help reduce this slippage and friction also, and the new construction methods in socks are contribution much. For instance, thicker sections and a lack of ridges can help socks reduce the friction. Their thermal properties and moisture-wicking capabilities also help improve the general environment around the foot inside the boot.

Your selection of a proper, quality hiking boot can also contribute to minimizing the possibility of friction and, ultimately, blisters. Yes, many stiff hiking boots will loosen somewhat as you wear them, but it really is important to find a boot that fits right and is comfortable right away.

If you decide to remove your boots during the hike and slip them into a cold creek, be sure to dry your feet off completely before re-booting. Also, make sure there are no ridges on your sock and gravel inside the boot.

However, if you still feel a blister forming, remove your boot and use some water to rinse off the area. Disinfect the area with anti-bacterial cream or alcohol if you have it. Then, puncture it horizontally by using a clean, disinfected needle and squeeze out the fluid inside. Do not tear off or remove the skin, but rather place a bandage over the area to serve as an “artificial skin” until it heals.

Once at home, treat the area better with Benzoin or another anti-bacterial cream. Though not in ever case, you may need to cut away the flap of skin but only if a good portion of the skin has become loose. Otherwise, it will fall off or decay on its own.

As you see, selection of you hiking gear is important. Be prepared so you can enjoy the entire hike from beginning to end!

Clinton Maxwell published largely for http://www.alicante-spain.com , an online publication with topics around Xixona . His work on buy property in costa blanca can be found on his site .

Landlord Insurance

Wed, 03 Nov 2010 09:13:19 +0000

You have just spent a lot of money buying a property – either it is your home and you are going to work overseas for a while or in a different part of the country. It might be an investment property a “buy – to let” or a buy to let via a SIPPs Property Pension. You might just have inherited the property or decided to move into your partner’s property. For any of those reasons you must make sure the property is insured. If you are buying just one property purely to let out, you must treat it as a business – keeping proper records for tax authorities etc and like running any business – you need to run this in a professional manner and this means having adequate insurance.

If you don’t what happens if the roof blows off – a tenant falls down stairs and breaks a leg – the pipes burst. Some of these might well be covered if you own an apartment that has includes insurance with the block management – maintenance – ground rent charges. Most apartment blocks have this, however they might not cover theft, or water damage to fixtures and fittings in the event of a burst pipe. It is not a legal requirement to have Landlord Insurance, but if your tenant fell down stairs you could be facing a high claim at the local law court.

If you own a house or bungalow then you will not have this type of insurance. You will have to make your own arrangements. When a there is a mortgage on a property the lender will naturally insist that the building is insured as part of the mortgage deed. The property owner will often have to use the lenders insurer, however like the insurance situation with an apartment, it would normally be very rare for the insurance to cover an contents. 85% of private UK Landlords have mortgages supporting their investment. The interest still has to be paid even when the rent isn’t.

When you let out your property you must let the insurance company know. (If the property is mortgaged then the lender should be advised and you should get their agreement in writing). You could have a situation whereby there is a claim for your property, the insurance company will not honour this because it was not the owner and immediate family living there….it was let out. If the property is your normal domestic home and you and your family are moving to Italy to work for a couple of years and you are letting it out, you must get the insurance changed.

You might also find that your insurance company is not interested in insuring the property when it is rented out (even if you have been living there and you are moving out for a year or so for work reasons). For many years many insurers did not want to take on this type of business, particularly when a property could be empty for periods when it was not let. A couple of companies in the UK get involved in this as they saw it was a real problem for property owners and although the UK buy – to –let business has really grown since the 90’s before that there were many investors in residential property either owning “long term protected lets” and after the introduction of the Protected Shorthold Tenancy from the 1980 Housing Act, similar types of properties as today were then being bought and let out. In the early 1990’s Thomas Winter Insurance Brokers arranged a new product Homesure that was later to become Letsure with the merger of Winter Richmond and then came along a competitor Homelet. Letsure and Homelet are the major companies involved in the UK rental property insurance market.

If something goes wrong with the property, failure to insure could leave the owner with nothing to show for the money that has been invested.

Insurance premium will vary from area to area in the UK. Your post code can effect the premium you pay. You will pay more in areas will be in area that has higher crime statistics, or where a property is located in an area that is liable to flooding for example. There is not a lot you can do about this as your rental return might just be just the same as in a property 5 miles away that is in a different postcode. One note of consolation is that subject to the Inland Revenue’s agreement, you can deduct insurance expenses from the profit you make on a letting, so a higher premium will mean you can deduct a higher expense.

Level of Cover: Insurers will only pay as much as the building is insured for so if it is not sufficiently covered and the roof suffers storm damage you could end up paying a lot yourself. You will often have to pay an excess on a claim, but the amount depends on the policy purchased.

A lot of insurance companies will offer index link policies, but for a buildings policy it is most important to have the right cover from the start. You will normally have to provide the square footage and other details. What the building is constructed of, type of roof, number of storeys etc. Many insurance companies have major concerns over wooden structures.

Some companies now offer a low cost buildings policy that will also cover loss of rent and re-letting costs following insured damage. It can be worth while looking at alternative policies.

Internally for contents is often more simplified? A quick check through a retailer’s catalogue or on the web will give you an indication of price for furniture and fittings and if you have recently purchased equipment for the property you should have kept the receipts (you should have them for your Tax Return anyway). Always make sure you have adequate contents cover.

A point often overlooked by Landlords is that they think why do I need contents insurance? The property is being let unfurnished. That might be the case; you however are most likely providing carpets, curtains, kitchen appliances etc. What happens if the ceiling collapses as a result of a burst pipe? The buildings insurance will normally pay for the repairs decoration….but not for replacing the carpets and soiled curtains. To overcome this problem, specialist rental insurers have introduced limited contents cover now.

Some companies now offer a low cost buildings policy that will also cover loss of rent and re-letting costs following insured damage.

Legal Expenses – Tenant won’t pay the rent – Tenant needs evicting. Even when using a professional letting agent, problems with tenants can occur. They might have had first class credit and employers references at the tenancy start, however in many cases the tenants personal circumstances have changed during the term of the tenancy. Situations like loss of their job, failure of their business, a relationship break-up, accident or illness will effect the tenants ability to pay the rent or their inclination to move out at the end of the tenancy.

All these situations can be resolved but will usually involve a Court hearing and solicitors costs. Legal costs like solicitors/barristers fees, Court and bailiffs’ costs can be expensive. It can cost £100 for less than 45 minutes of a specialist solicitors time on a normal fee paying basis. The “average” legal cost of a possession hearing in 2001 was £785, many cost well over £1,000. Legal expenses insurance will usually cover all of your legal costs. The average policy in 2005 costs £100.

Rent Guarantee Insurance -These policies are invaluable for many landlords. As a tax deductible premium this will guarantee you receive the rent you are expecting from your property regardless of your tenants personal circumstances, ability or willingness to pay the rent.

If you have a mortgage on the property or have calculated your rental income verses your outgoings this will ensure you do receive your rent. Most such policies will include the legal expenses, as detailed above. You will receive your rent and the legal fees to obtain vacant possession will be covered.

Policies will usually guarantee your rental for a fixed period, typically 6 or 12 months. Some policies will provide additional cover once you have obtained vacant possession until you are able to re-let your policy. The costs vary from a fixed cost policy or are commonly rated as a percentage of the annual rental figure, typically 3-4%.

Emergency Assistance Insurance – So something goes wrong – Failure of the electricity supply – Failure of the cooking facilities – Lost keys – Plumbing problems – Leaking roofs or guttering – Security of doors and windows. This type of cover will provide assistance for the landlord and the tenant in the event of an emergency at the property Policies will normally provide parts and labour cover up to a specified amount and either the landlord or the tenant can call a 24hr 365 day Helpline.

Beware; Some European Property Investment Markets are a Milked Cash Cow!

Tue, 02 Nov 2010 09:15:17 +0000

With the property market in the UK currently shaky, I’m guessing that you’re considering sinking your capital in European property investment. I’m not going to tell you not to do this, but what I am going to do is say that you need to do your homework before you start.

It’s not just us Brits that are having a property investment crisis; some of our European neighbours aren’t the cash cows they were a few years back. However, there are still some good deals to be made if you know what you’re doing so it’s certainly worth thinking about.

Where’s the best return?

Buying property in Western Europe isn’t going to make you rich anytime soon. The property market there is as risky as it is here and so there’s little potential to make any return on your capital. Eastern Europe is where it’s at however. With the increasing development of property in countries such as Bulgaria, Romania, Croatia etc there’s money to be made. However what you need to beware of is any locals selling you “a good deal”. Chances are that this European property investment opportunity isn’t as good for you as it will be for the agent trying to sell it to you!

If you plan on investing money in property overseas you must ensure that you know what the trends are, what the market is worth, what the future is like for the area that you’re investing in. The local agents aren’t going to tell you that a local factory is earmarked for closure within a couple of years and that many people will be unemployed and have to leave the area. They will show you a location with a job market on the doorstep.

So how do you get the best deal?

First of all read my strategy tips to clarify what kind of investment you’re looking for. Independent research is an essential part of the European property investment market.

Rather than look at complexes that are already under construction, why not look at the land that’s currently undeveloped? Is it possible that it would make a tourist area? Or a suburb for a slowly expanding town? Land is limited, but the right land has unlimited potential – I guarantee it’s well worth the time it takes to carry out the surveys before committing your money!

Surrinder Ahitan offers free property investment advice and tips on how to invest in residential and commercial property for maximum returns. Visit http://www.best-investment-property-tips.com where he reveals more valuable insider tips and property secrets.

Real Estate in Dubai ? Taking a Step Ahead in Future

Mon, 01 Nov 2010 09:20:26 +0000

Dubai has constantly been well-known for its amazing architectural growth and spectacular designs, and one illustration of such architectural aptitude is the planet only seven star hotel positioned in Dubai. At the moment, real estate in Dubai is perhaps the safest gamble for making any overseas property investment.

Now you must be thinking regarding the reason following this sudden rush in the Real Estate investment in Dubai. The chief factor behind this rise in the demand for the property investment in Dubai is the verity that asset laws permit the freehold possession of the property by any outsider, which allows the assets owners to rent out or sell the property each time they desire. Along with the possession of the freehold assets in certain selected areas in Dubai, a three year renewable habitation visa is also offered to the holder of the property.

Another reasons which acts as a dynamic force behind the property market in Dubai is the billion dollar investments via several of the leading multinational corporate in the world. This has resulted in the increase of the job opportunities in the city and increase in the population there. Due to the increase in the population of the city, the demand for the properties (both rented and owned real estate) has also increased. The legal formalities related to the investment in the real estate in Dubai are very minimal and simple, leading to a hassle free affair to the property owner and investors.

Looking into all the mentioned factors there is no uncertainty why Dubai is becoming a fantasy destination for the real estate. Dubai persists to set innovative records for construction and development, taking Dubai to the front of the most preferential real property destination in the entire world.

Rohit Chopra is an expert author, he is currently writing with Equilibrium. We provide detailed information on real estate in UAE and property in UAE“, Real Estate Investment Loans, Seller Concessions and much more. Make your investment today with us for a life long financial gain.

Poet Continues to Open Ethanol Production Plants

Sun, 31 Oct 2010 09:20:28 +0000

Apparently POET is too busy building and opening ethanol plants to read the headlines and know that the financial world as we know it is coming to an end.

The world’s biggest ethanol producer just keeps getting bigger, opening a new plant today in Fostoria, Ohio and announcing another plant opening in the same state at the end of October.

In fact, POET may be looking to get even bigger through acquisitions, according to this story from the Ottawa Citizen, which quotes CEO Jeff Broin saying that the financial crunch has made it the best time “in at least five years” to do so.

Obviously, he has not heard that the financial crisis “may delay biofuels development,” as Reuters reported this week from an interview with the CEO of BlueFire Ethanol. The fear is that the crisis will stifle cellulosic ethanol development because it has “raised project finance costs and made ambitious targets to replace fossil fuels with renewable energy sources look less achievable.” Just last month, POET announced they would complete construction on a $4 million pilot-scale cellulosic ethanol production facility by the end of this year and Jeff Broin said he is “more confident about the future of cellulosic ethanol than ever before.”

Some ethanol producers have been affected by bad financial decisions lately, no question. But, with corn prices heading back down (futures dropped below $5 today), those who are the most fiscally responsible will continue to turn a profit and keep moving forward. I’m no economist, but it seems that one of the best solutions to our financial problems is to invest even more into domestic, renewable sources of energy that produce jobs and keep more American dollars here at home rather than sending them overseas.

Matt Hartwig is the Communications Director for the Renewable Fuels Association in Washington, DC. Previously, he worked as the assistant media director for the Consumers Union in Washington. Prior to that, he was the Democratic Communications Director for the Senate Agriculture Committee.

U. Of Minn.

Sat, 30 Oct 2010 09:14:56 +0000

When I arrived at Pioneer Hall, our quarters for the University of Minnesota year, it was the day before Christmas and no one in charge was around. I went into the cafeteria for dinner, which after basic training chow looked like a banquet-turkey and all the trimmings. There was only one other arrival. I took my loaded tray to his table, sat down, shook hands, and exchanged names. He was Gus Tanaka. I had finally seen my first Japanese, well hmm, born in the USA, perhaps not. We exchanged a few stories, backgrounds, and experiences. Very friendly and interesting, he spoke accent-free American English.

I knew that Roosevelt, whom I much admired, had incarcerated most persons of Japanese descent on the West Coast to keep them out of harm’s way, implying that real (read non-Jap) Americans would be so angry that they might kill Japanese-Americans if they ran into them anywhere. With that motivation FDR could imply that incarceration was to protect innocent people among those in the camps. That distinguished it from the Nazi concentration camps. My conversation with Gus encouraged me to ask him a tough question. “Gus, I never met a Japanese person before. How can I tell that you are not secretly a liege of the emperor of Japan?”

Obviously annoyed by my ignorance, he said, “Look, I’ve never been to Japan. I’ve been an American all my life, schools, friends, even family. Why would I serve the emperor when the Japanese in Japan are at war with us?” We continued in that vein for a bit. I was soon convinced. Roosevelt had made his detention decision almost the day after Pearl Harbor, ordering Japanese-Americans into internment camps. After entering the camps, most lost their homes, their jobs, their income, and most of their possessions.

It occurred to me that if Roosevelt had had a face-to-face discussion with people like Gus Tanaka, he would not have made that stupid decision. Meeting with Gus may have been the first encounter where I was more favorably impressed by listening to the view of an “ordinary” person than by accepting whatever our political leaders were telling us. It certainly wasn’t the last.

In orientation sessions, it was made clear that we were to be soldiers first and students second. We had been placed in a detached infantry regiment to pursue an Army Specialized Training Program (ASTP). All of us had the lowest rank, private, not even private first class. There were no women in the program, and most of the guys had come directly from infantry basic training.

The agenda included “area studies” of not only Japan but the vast Pacific and East Asia. Academics assigned by the army to lecture us taught us what they knew a great deal about in the “area”-the history and the evolution of religion, governance, warfare, health care, technology, industry, culture, family values, crops, construction, education, and lifestyles. Their lectures and the materials they handed out to us were full of facts and statistics. We also had one professor whose expertise was the Balkan states, where WWI was started. Perhaps the many Balkan wars and ethnic clashes bore some similarities to East Asia. I never noticed such a similarity.

We were expected to take notes and to read the materials, but we were never tested in area studies. I had trouble staying awake in class, especially when it was just after lunch or followed late-night language studying.

Most of our time was committed to learning Japanese, the spoken language, that would turn us into interpreters when we completed the program. I was fascinated by the language, grateful for no gender (unlike French or German). No prepositions, only postpositions. The spoken language is composed of fifty-one syllables that can transform speech into written language, similar to the way the alphabet works in English, but with one character for each of the fifty-one. Unlike English and many Western languages, every syllable is pronounced the same way no matter in what word it appears, and in any given word with two or more syllables every syllable has the same weight. I found Japanese a fun language to learn. The word for a syllable-based written language is a syllabery (sometimes spelled syllabary), in analogy to the “alphabet.” In fact most of Japanese written language is in Kanji (which in Japanese means Chinese language). Kanji words generally mean the same in Chinese as in Japanese, but are pronounced very differently. For the most part Chinese and Japanese can understand one another’s newspapers.

There are two different Japanese syllaberies: (1) Hiragana is used to add endings onto words, similar to changes of English verbs (for tense and case) and English nouns and verbs (for singular/plural). (2) Katakana is used to write foreign names after adjustment to ease enunciation by Japanese. We ASTP students learned the two syllaberies very easily, but learning Kanji as well as the spoken language would have at least doubled our workload. Since we worked on spoken Japanese about forty hours per week, the additional work of learning the Kanji for all the spoken words we would learn (about four thousand in a year or sixteen per day) was considered by us as almost impossible. In hindsight I have come to think that was a mistake. Yes, it would have taken more time to learn the Kanji, but it would have been worth it for what I had to do in the occupation of Japan. Now sixty years later I’ve come to believe that learning and knowing the spoken and written languages together reinforces the remembrance and facilitates the usage of both.

Once we got used to it, it was not hard to learn sixteen new words a day. The difficulty that came from remembering them all as the year went on was overcome by repetition aided by mnemonic techniques, sometimes by ad hoc combinations of English and Japanese song snippets, rhymes, doggerel, and bilingual jokes, which with great amusement we tossed out to each other.

We were also taught about a hundred Kanji characters, selected from thousands as representing common words or words with simple brush strokes, like “-” and “=,” pronounced “ichi” and “ni,” respectively, and meaning the numbers “one” and “two”-pretty obvious from the Kanji, right? Well, Kanji rapidly gets much more complicated. The preceding information was relevant to our studies and later to my duties in Japan. We’ll stop there. I promise there will be no more language lessons.

Unlike area studies, learning spoken Japanese was serious business. Within a short time we were organized into about twelve small groups with eight to ten per group. I realized that I had been put into the top group of fast learners. All the groups covered the same material. A very few students, who apparently strongly preferred to be discharged with good conduct as soon as possible, did leave the program before the year ended. I never knew whether that happened as a result of medical problems, political influence, bribes, or zero interest in learning Japanese. The rest of us enjoyed the great opportunity we had received. It was certainly better than going to fight in Europe. Don Gold and I were the only two from the thousand-man Camp Croft battalion sent to Minnesota, as mentioned in the last chapter. There were three people in the battalion who were Jewish: Gold, me, and Louis Fullenbaum. Gold was in touch with Louis’s family and learned that Louis had been killed fighting in the drive across Europe. So I could believe that in Minnesota I had avoided a bullet with my name on it.

As an assignment I read a classic Japanese book by Murasaki, The Tale of Genji, a sophisticated and lengthy novel written a thousand years ago by a woman courtier in the eleventh century. Reading in bed at night, it took me months to finish. Each night the book took me into a totally different world. Murasaki wrote as a keen, friendly, feminine, and enchanting observer living in the court of Prince Genji, a youthful, handsome, much loved potential successor to the throne, or shogunate. She appreciated and encouraged artistry within the court in its many forms-tempering and performing the classical musical instruments, graciously brush-stroking poetry script and recitals, and the beauty and techniques of stylized painting.

Genji had to travel occasionally and clearly was under pressure to secure his position. Such developments were only treated in the novel on the personal level with no mention of the underlying power struggles. Genji also had many sequential love affairs. The book develops in exquisite detail the characters and the activities of the key players, friends, and confidantes of Genji and the ladies who adored him when he politely, protectively, and intriguingly entered their bedrooms.

Reading about a world more different from anything in the modern world I knew or could imagine, I was carried away for a brief time each evening to a world of enchantment.

When the guys fell in for reveille one day, the officer in charge looked us over for a while and then chose four to be the “color guard.” I was one of them. We later learned of two duties. One was going with the officer in charge to the bank in downtown Minneapolis, carrying loaded rifles to get the monthly payroll in cash (about $7,000) to be distributed that night when each private signed off and received his money.

A second duty came later. The color guard was to march four abreast in a parade down the field at halftime of the university home football games. All four of us shouldered rifles, this time unloaded. The two in the middle also had to carry an American flag and one other. I may never have even noticed whether the other was the flag of the state of Minnesota, the infantry, or the university. To hold the flag with one hand and shoulder the rifle with the other required wearing a special leather flag holster over the hips. Then for the four of us it was heads up, body erect, and stay in step. Minnesota had a ferocious prewar football reputation that tanked by 1944, when almost all the top players had been drafted and were fighting overseas. I recall only one time when our army color guard actually paraded. Perhaps it was the lack of interest in the team or a decision that an army color guard was not such a good idea. I cannot say.

(This is an excerpt from MILITARIST MILLIONAIRE PEACENIK: Memoir of a Serial Entrepreneur by Alan F. Kay and reprinted with the permission of the author)

For more about Alan F Kay see Alan F. Kay.