When it comes to appraising personal property, the rules are fairly consistent across the US, but there are some exceptions and qualifications that might make a real-life difference. The issue for the first time is to find out if an item can be legally removed using a real-life experience to follow.
A potential problem for a male convert is to appraise his vehicle at his current value at the time he wants it. There is a 70% cap on the current value and, since he wants it, he is willing to go that price. He then buys the same vehicle for a younger version. After three years of driving it around, it is worth 75% of his current value and he then offers it to the younger brother for 75% of the original deal – making his remaining 50% of the original deal. The younger brother is delighted to get anything for 50% of what he is paying, but when I suggest he might be burning down money, he decides to hold out for 70,000 dollars, notwithstanding he has been driving the same vehicle with no change in value over the same time as he was driving it. When the deal is negotiated, he needs to bring in 12,000 extra dollars to close. Keep in mind, at the beginning of the transaction, he was being paid 70,000 or $7,000 (70% x 3 years) – so the original price ( 1970 percent x 3 years) was 50,000 dollars. By the time the deal is closed for 12,000 dollars, the car is often depreciating by 40,000 dollars, which takes it to 90,000 or so by the time it is sold.
The young brother, happy to get anywhere near 70,000 or $8,000, decides to pay the 15,000 as a down payment. He is happy with proceeding as planned and gets to live in his dream vehicle.
Written at this time is a mixture of the truth about how mortgages work and how real estate valuations take place. Property values in most places continue to decline and are set by the native peoples of the region and their own personal experiences and emotions. These emotions often steer people away from other less obvious options or compel them to act in a certain way. The native peoples’ energetic elbow grease tends to make certain facts about money into hidden pitfalls.
To begin with, there is an inherent problem with the 70,000 per year calculation. It is not easily achieved and unless you buy real estate by using the buying agent’s information, the calculation is only as good as the data is, and you cannot judge the value of something based on outside information. For example, there is nothing necessarily worse than purchasing real estate at a value of 70,000 dollars per year even if the inside tenants tend to hold out on paying their rent a year.
Now let’s consider the younger brother, who says he prefers purchasing real estate for its one remaining value as opposed to what the outside tenants are paying in rent, and understandably feels he will get more for the one remaining value. He gets excited about thinking about how many acreages, houses, and condos he can buy and then gets very excited when he goes out and makes his request for particulars and to the realty office.
At first, in asking for the particulars, he doesn’t fully appreciate that in order to do well in the asking price selection market, he needs data, but not necessarily raw, fresh real data. He is also not aware that, without data, he cannot buy the house he wants and must rent it for approximately one year (when the first honeymoon period is over and homes are not so attractive anymore). If he had lived in a smaller rental, he would have at least some option to buy it at a fair price and even make a good operating profit on it.
There is a tremendous deal of difference in money earned in the selling and buying of real estate properties and profits in the renting of those same properties. A person or corporation can make a profit on a piece of real estate, but that profit is seldom based on the nine-carat jewelry or even how much landscaping the house looks like.
To someone who just wants to get along, this article would be very useful, but understand that the method used to produce this article was not designed to be charitable. This is to help you to make money, however, that knowledge is useless unless applied to something positive that will help you produce more income. I will do my best to do my best, but I do not guarantee that this will work. I can only say that, if I do not make money, I will have done something very foolish. Make your money to last, live within your means, and finally, set some money aside as savings for rainy days and emergencies.Read More