unakfrszftx

Lost Secrets of Making Money In Today's WorldPart Three

Earlier, in Part One and Two, we talked about the principles and concepts of creating money and that leads to vast wealth. As a refresher, here are the topics again:

1.Knowing Value
2.Practicing Conservatism
3.Paying Yourself First and we touched upon,
4.LEVERAGE and REINVESTMENT

LEVERAGE

Now, I am are going to talk about Number 4., so lets proceed.

Like a lever that can move large masses very easily and accomplish more in less time, so you too can create wealth faster with leverage than with savings and the practicing of conservatism. Conservatism is not wasting what you have.

Working for an hourly wage is not going to make you wealthy and practicing conservatism would just keep you going on and make ends meet and perhaps live very well. However, you will not amass great wealth.

For that, you need to create leverage. Leverage is the art or technique you can use to create or formulate a system whereby youll generate MULTIPLE STREAMS OF INCOME by earning a portion of the revenues generated from projects.

A good example might be as follows:

You wrote a book, and negotiated with your publisher who thinks you have a No. 1 best seller on our hands. He accepts all the risks and finances the publishing of the book and market it on the premise that you collect 10% from gross sales. Whether it is a winner or not, you get your 10% of the gross sales according to contract and all you did was wrote the book. This is a form of leverage. The money you earn from this could well be several times more than youll earn in a whole year. This is the power of leverage.

Another example: You created a machine or product -- physical or chemical- like a shampoo spray, bathroom cleaner etc., and you arranged with a manufacturer to make it in large quantities and then distribute it to thousands of distributors throughout the countryor the world. Your take in this, like before is, say 1 to 5 percentage of the revenues. By now you can see how easy you can become a multi millionaire from these types of leverage techniques. Youll never have to work another day in your life if you set up a system like this for yourself. You can learn a new craft, trade, use your inherent talent to create products and services for sale and you will surely come up with a winner if you keep at it.

In a minute Ill show you how you can set one up for yourself with a little effort on your part. You do not have to create a vehicle to financial success, one is already created for you. All you will have to do is make it work. Well show you how, every step of the way.

This is the real secret to creating great wealth money to burn etc., or whatever you want to call it. The secret is to put little effort to gain the most output. Youll learn how to invest in several projects and youll see how 20% of your investment will generate 80% profits for you. You work smart, not hard. Work less. Make more.

REINVESTMENT PROGRAM

Now, suppose that you have created a product or service using this leverage system. And, your money in the bank is generating interest upon interest compounded daily, quarterly and yearly. Soon, youll have a tax problem. You are earning too much money and Uncle Sam will want his share. You will now have to scratch your head to lower your taxes. Your income will soar to the moon and you will have to seek tax shelter and occupy yourself with protecting your income.

To combat this problem, you will have to find new investment vehicles that will protect your income for many years to come. You will be looking at long term investment funds, Trust funds, Equity Protection funds, reverse mortgages, treasury bonds, gold, silver, and other precious metals, re-investment in large a shopping centers, antiques, art collection and more, just that you protect your current and future income.

But, however you cut it, you will still have to pay Uncle Sam some of it by employing legal Tax Avoidance strategies, despite the creative tax accounting that you may employ.

But, all in all, it is better to have all this money available to live an abundant life and pay Uncle Sam his share, than have to pinch pennies to live and end up in poverty. One millionaire I know said that he could never use all the money he has accumulated, but it is nice to know that it is there if you need it.

So brace yourself, and get ready to put this LEVERAGE vehicle that is already set for you to achieve all the financial outcomes we described above. Youll enjoy the thrill and the ride.

The Faster you start the quicker youll be looking to start a reinvestment program as described here. But, by then, who cares, when you have vaults of money that keeps piling up.

Click the link below and take a tour to a wonderful world of wealth and prosperity.

posted by nwwhimy @ 8:58 PM 0 comments

Bulgarian Property Market Insight

GOLF GRABS BULGARIA!

At the present time there are only three golf courses in the whole of Bulgaria: one at Elin Pelin, near the capital, Sofia, and two owned by Air Sofia. These are located at Ihtiman, opened in 2000, 40km from Sofia, and at Sliven, opened in 2004, 90km from the Black Sea.

Because of the increasingly rapid rise in foreign interest in Bulgaria recently, several more golf courses are proposed. One of these will be located at Razgrad, in the north-east, about 90km from the Black Sea. More are scheduled to open in the next few years: two at Kavarna and one at Primorsko, near Sozopol.

Mountain and ski areas will be represented by a golf course in the ski town of Bansko this year, and a very large golf complex between Kostenets and Borovets, the country's foremost ski resort. This is scheduled for 2007, the year of Bulgaria's entry into the European Union, and will be located at Dolna Banya, already near Bulgaria's first golf course at Ihtiman.

Bulgaria Properties Ltd has purchased almost 6 acres of prime development land adjacent to the proposed golf course at Dolna Banya. The plans are to construct about 220 apartments around a comprehensive sports complex, with access to the golf course by a short footpath. The amenities on site are to include tennis, volleyball, squash, badminton, lawn bowls, boules (boccia), shooting, archery, croquet, mountain biking, and fishing nearby. Indoor facilities will include a 140-seat main restaurant and cabaret stage, a huge main bar (perhaps the largest in Bulgaria), a sports bar with projection TV, snooker, pool, table football, table tennis, a Chinese restaurant, Indian restaurant, fast food cafeteria, pizzeria, gymnasium, sauna, massage parlour, clinic, chemist, sports shop and minimarket.

Steve Avery, a Director of Bulgaria Properties Ltd, said, It may sound like a clich, but we really were in the right place at the right time! After two years in this business, I just couldnt believe my luck to find such a gem. Anyone involved in this project should make a serious return on their investment.

GENERAL OBSERVATIONS ABOUT THE BULGARIAN PROPERTY MARKET

On Borovets and Bansko generally, Steve had this to say: Apart from having ski lifts and ski runs, these two towns are quite different from each other, and appeal to different groups of people. Bansko is an old, traditional residential town with lots of character and no fewer than 180 quaint taverns full of local people singing and dancing to a typical Bulgarian folk band. Borovets, by contrast, is purely a resort, with hotels, modern west European-style bars and night-clubs, cafs and restaurants. Residential property and holiday homes are therefore readily available in Bansko, but not in Borovets, where the closest you can get is usually in one of the surrounding villages.

As for property values, Bansko went mad for a period of three months at the end of 2003, with land prices doubling, and then calmed down. Many poor goatherders suddenly found that they were rich. Nothing wrong with that, I say. Since then values have been pretty steady there until now, when theyre starting to creep up again. The reason for this is that the sudden surge in foreign tourists to Bansko has left the supply of holiday accommodation woefully short of the demand. And this trend shows no sign of abating. To try to cope with it, there have sprung up many hotels and apartment projects, but it seems unlikely that even these will be able to satisfy the demand for accommodation for several years yet. As a result, the prices for such apartments range from 1,000 Euros per sq.m. for a ground-floor unit facing away from the mountains, to 1,350 Euros per sq.m. for a top-floor example with a mountain view. Yet, people buy them. I guess, because a 1 bedroom 60sq.m. apartment for 41,000 is still a far better deal than youd get in Spain. Ive heard developers claim that 90% of their apartments are sold within 3 weeks! I only hope that we have such luck when ours are released in June!

In this respect Borovets, again, is different. Although its Bulgarias first and best-known ski resort, it stagnated for years until now. The Super Borovets project, funded by EU, governmental, foreign and local business sources, is scheduled to run from 2005 to 2009, and will revitalise the whole region around the town to a radius of 10-12km. This has already started to affect property values in the surrounding areas. To give an example, in March 2004 we bought, unseen, a half-acre plot in a village 15km from Borovets. When I visited it, I discovered that it wasnt suitable for building apartments; so, I put it on the market in August. By November it was sold at an 80% profit after all costs were deducted!

I am personally of the opinion that the Bansko effect could strike around Borovets at any moment. Thats the reason why Bulgaria Properties Ltd is developing four projects here, and only two in Bansko. We can sell these apartments about 15% cheaper at the moment, anyway. Borovets must surely offer a better return on investment, regardless of the type of property bought: land, a shack, whatever. You wont find new apartments easily, though. As far as we know, Bulgaria Properties Ltd is the only developer building them. I dont, however, expect this monopoly to last for long.

Bulgarias third ski region is at Pamporovo, which, like Borovets, is purely a resort. Funding is starting to come in, but full development, if it happens at all, is likely to follow several years behind Borovets. Its distance from Sofia (a days drive) makes it less attractive to visitors from north and west Europe. It is, however, popular with Greeks, because of its proximity to the frontier. One of Bulgarias major motorway routes to Greece will pass very close to Pamporovo, and this should boost its popularity, as well as making the Mediterranean Sea more accessible.

Property values are lower here than in Bansko and Borovets, but are creeping up gradually. I reckon that Pamporovo is a good long-term prospect; say five to ten years. The only reason why Bulgaria Properties Ltd has no developments here is because Ill probably have retired before the boom happens.

How does a mountain area investment compare with coastal properties?

Significant differences yet again. Until recently, most of the investment was flooding into the northern Black Sea coast resorts, from Varna down to Sunny Beach. The area became very popular as a result of the Bulgarian governments Bulgaria the Beautiful TV campaign back in the 80s, and the subsequent interest of package tour operators. Now that the north is saturated with developments, the interest has begun to creep down the coast. This is causing a steep rise in property values. They are still lower than those in the north, but the gap is closing. An investment in the south should therefore offer a better ROI.

Dont expect, though, the ambience of the south to become like that of the north. When I discussed the subject with the Chairman of the Bulgarian Foreign Investment Agency last year an extremely intelligent and able young man, I must add he told me in no uncertain terms that he did not want the south to become like the north. His very words were: We dont want another Benidorm. So, prospective property purchasers need to bear this in mind, and balance their desire for more capital growth, or their willingness to accept less, with the different rental market appeal of the two regions, along with their own taste in holidays.

There is one highly significant factor, however, which very often goes unnoticed until it is too late; and it applies to the whole coast. Most people dont know that it freezes on the coast in winter. When they see the coastal resorts basking in the hot summer sunshine, its difficult to imagine snow on the ground. The entire coast simply shuts down in the winter, and nothing happens. Its as dead as a doornail. Therefore, rental income can be fairly assured for 15 weeks, possibly 20, plus some odd bits in the shoulder seasons of April and October. The coast has a five-month season from May to September, compared to nine months in the ski areas. Those people buying only for rental income, therefore, would find the mountains far more lucrative.

The Times recently published an article, saying: Rental yields tend to be better for ski properties than those on the coast because of the longer ski season. You could expect about 12 per cent gross yield for a good ski apartment and about half that on the coast.

Rents vary greatly, and depend on many factors, most of which should be obvious: location, size, view, amenities. The standard of finish and the condition of the property can also determine your market quite radically. To appeal to west Europeans, and to command the highest rents, your property must be well finished and appointed, and be in tip-top condition. If it is not, you still have a market for east Europeans, who tolerate less salubrious surroundings because they pay much less, usually about half of the west European rates.

Generally, summer rental rates on the coast equate to winter rates in the ski resorts, both seasons being about five months. Remember that you also have about four months additional rent, though at lower rates, during the summer in the mountains. These rates should increase gradually, as the Government programmes to make the ski towns more popular for summer holidays make their mark.

There are several Bulgarian agencies willing to manage your rental properties for you. Expect to pay about 20% of the rent as a fee.

What about properties in the countryside?

Not a serious contender in the ROI stakes, I think. Not if you consider the effort involved. You can pick up property very cheaply indeed in the inland areas, away from the resorts. Almost always itll need some kind of work; anything from a face-lift to demolition. Theres often no inner staircase to the bedrooms, no bathroom, and the toilet is in a shed in the garden. This kind of property is great for buyers who want to get away from their homeland, and disappear in the beauty of nature permanently. As a business, it could appeal to self-builders or DIY enthusiasts, prepared to do it for fun, and accept a low return on their financial and physical investment. As for rental income, forget it!

And the cities?

Again, there are differences, even between cities. The prime city is, of course, Sofia, the capital. Buy the right apartment here, in the right area, and you can expect a guaranteed rental return of about 12% per annum. The flavour of the month is gated communities, particularly in the south of the city. The diplomatic residential district of Vitosha is one of the best bets. There is a ready demand for luxury accommodation from diplomatic staff and executives seconded by foreign companies, usually on a long-term basis, and this demand should increase as 2007, the year of Bulgarias accession to the European Union, approaches. Although you should expect to pay high for such properties by Bulgarian standards, its still only the price of a tarted-up Victorian terraced flat in a UK provincial town.

Theres virtually no market for tourist rentals in Sofia, as its probably the least interesting European capital city. Its also very polluted, although they are trying to clean up their act, ready for EU entry in 2007.

Plovdiv, the countrys second city, is much more pleasant. It has a quaint old town, as well as modern business districts. It therefore bridges the gap between business and tourism, as far as rentals are concerned. Plovdiv is connected to Sofia by an excellent motorway, on which you can keep the pedal to the metal, if youre prepared to risk an on-the-spot fine of 50 Leva (about 18).

Veliko Tarnovo is probably Bulgarias most touristic city, with its citadel and mediaeval ramparts. Most people who buy property here do so to make it their main home. The city itself is beautiful, and it has everything a townie needs. Drive a short distance, and youre in some wonderful countryside. You couldnt really make a good living from rentals, but its the perfect place to retire to.

Theres one more thing which is important enough to mention: Mineral baths. These exist all over Bulgaria, the most significant being at Narechen, south of Plovdiv, and Momin Prohod, near Kostenets. Scientific studies rank Bulgaria among the foremost in Europe for hydrothermal, bioclimatic and mud treatments, sea cures and other health resources. Bulgaria is a world leader with its exceptional diversity of medicinal herbs and the excellent curative properties of its apian products. Any property near a spa should attract a premium to its sales or rental value.

Full details about the Super Borovets project, price madness in Bansko, golf developments in Bulgaria, and new apartments in Bansko and Borovets can be seen at the Bulgaria Properties Ltd web site www.BulgariaProperties.net. Or you can e-mail advice@BulgariaProperties.net, or call the company at +44 (0)871 226 2296 to order a free 28-page hand-out, or just for a chat, if you prefer. They always have time for you.

posted by nwwhimy @ 5:42 PM 0 comments