Investment Property - Leveraging Rental Property Equity

Written by Richard A. Chapo

Continued from page 1

Our goal is to protectrepparttar $250,000 in gain onrepparttar 149841 rental property while also maximizing tax reductions. The first step is to refinancerepparttar 149842 property with, typically, an interest only loan. A percentage ofrepparttar 149843 equity gain is taken out ofrepparttar 149844 property and placed into an equity index insurance product. The equity percentage is arrived at by determiningrepparttar 149845 payment amount you can afford onrepparttar 149846 loan. Typically, it is tailored to match your current loan payment amount.

Going back to our scenario, what happens if property prices pull back 20% overrepparttar 149847 next year? You do not sufferrepparttar 149848 loss of $100,000 becauserepparttar 149849 gain is sitting in your equity index insurance product. Essentially, it is a wash and you have protectedrepparttar 149850 capital gains while capturing a stock market-based rate of return.

Ah, but it gets better.

Equity Index Insurance

The investment grade insurance product isn’t just any policy. Instead,repparttar 149851 policy we use is tied to a stock market index. What ifrepparttar 149852 stock market suffers a loss? Not to worry, this policy carries a guarantee that you will never lose a dollar, even ifrepparttar 149853 market crashes. Ifrepparttar 149854 stock market did crash,repparttar 149855 policy would simply credit you with nominal growth forrepparttar 149856 year in question. In all other years,repparttar 149857 policy would grow withrepparttar 149858 stock market. On top of all of this,repparttar 149859 money inrepparttar 149860 insurance product grows tax-free.

So, what has been accomplished? First, you have protected your rental property equity gains from home price fluctuations. Second, you have leveraged your equity into two growth channels,repparttar 149861 stock market and appreciating house prices. Third, you have converted taxable growth [property appreciation] into tax-free growth [insurance].

With housing markets ready to cool down, this strategy effectively locks in your profits. Preserving equity gains should be a primary goal of any investment property owner.

Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Visit article section to discover tax strategies and deductions.

Finding the Right Bad Credit Loan UK

Written by John Mussi

Continued from page 1

Unsecured loans An unsecured loan is one that does not require any form of collateral… and is therefore not as likely to be offered when searching for a bad credit loan UK . Instead of offering up collateral, you'll be required to pay a higher interest rate for an unsecured loan; while you'll be paying more, you won't have to worry about losing your house or automobile should you not be able to repayrepparttar loan.

Finding a bad credit loan UK To findrepparttar 149838 bad credit loan UK that's right for you, you might have to do a little bit of shopping around. Check with local finance companies and other lenders to see what sorts of loans they offer, and look for ads inrepparttar 149839 tabloids and other papers. You might also checkrepparttar 149840 internet for bad credit loan UK offers.

After findingrepparttar 149841 best loan offer for your situation, try to controlrepparttar 149842 amount that you borrow… only get what you absolutely need, instead ofrepparttar 149843 most that you can. After all, you're going to have to pay it back and don't want to get in over your head.

You may freely reprint this article providedrepparttar 149844 following author's biography (includingrepparttar 149845 live URL link) remains intact:

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the website.

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