Home Equity Increases $1 Trillion in Five Years – Is the Market Peaking?

Written by Charles Essmeier


A new survey reveals that inrepparttar last five years,repparttar 141507 equity inrepparttar 141508 California real estate market has increased by more than one trillion dollars. A trillion dollars is a large number to ponder, but put in concrete terms, it can be represented by a stack of one hundred dollar bills that is six hundred thirty one miles high! This astronomical increase in California home values isn’t all that unique, however. Prices onrepparttar 141509 East Coast, particularly inrepparttar 141510 Washington, D.C. area, are increasing just as rapidly. There are areas on both coasts where home prices have tripled duringrepparttar 141511 last five years. This, along withrepparttar 141512 dramatic increase in interest-only mortgages among homebuyers, suggests that home prices may be peaking.

In California, 35% of all mortgages written are interest-only mortgages. In Washington,repparttar 141513 figure is a whopping 48%. With an interest-only mortgage,repparttar 141514 homeowner pays onlyrepparttar 141515 interest onrepparttar 141516 home loan forrepparttar 141517 first few years of mortgage payments. Afterrepparttar 141518 agreed-upon period of time ends,repparttar 141519 amount ofrepparttar 141520 payment is adjusted to include a portion ofrepparttar 141521 principal. This typically increasesrepparttar 141522 amount ofrepparttar 141523 payment by about one-third. Interest-only mortgages have gained in popularity as home prices have increased, mostly because buyers otherwise would not be able to afford to buy homes. The problem

Preparing Your Business Budget

Written by Ryan Hoback


www.motivatedentrepreneur.com

Money & Finance

Preparing Your Business Budget By Ryan M. Hoback, Motivated Entrepreneur Incubation & Consulting

So you’re ready to chartrepparttar future of your business, you have conceptualized your vision and you are now ready to planrepparttar 141506 budget for your business. This is a big step, and an integral part of business planning which will serve as a very important catalyst toward achievingrepparttar 141507 goals you have set. The first step you want to take in preparing your budget is to label and identify your objectives behindrepparttar 141508 budget. Your budget will help you assessrepparttar 141509 risks and rewards associated with running your business.

First you need to determinerepparttar 141510 objectives or desired results you are seeking fromrepparttar 141511 budget you’re developing. Whether you are to expand and grow your business or determine your return on investment (ROI), preparing a budget will aid you tremendously in structuring your business. Once you have determined your objectives and reasons for preparing your budget,repparttar 141512 next step is to gather together allrepparttar 141513 information necessary to assess and prepare your financials.

Example:

Sue’s Pest Service

Objectives: Develop projections for my start-up business

Show my ROI – Return On Investment

One good place to start is to list all your accounts, that is, each expense category and how much you will spend on that category forrepparttar 141514 allotted time frame of your budget.

Chart of Accounts

Labor (3 Pest Control Agents)

Materials (Spray Tanks, Pesticide)

Utilities (Lights)

Rent

Office Equipment (Stationary, Flyers)

Developingrepparttar 141515 chart of accounts allows you to begin comparing your numerical data. The next step involves identifying and determining your fixed and variable expenses. Since you have developed your chart of accounts already this is a good reference or starting point, remember, your fixed expenses generally stayrepparttar 141516 same. Examples are insurance, rent, salaried wages, interest, and office maintenance. When projecting fixed expenses for years ahead, take into account any raises that may be coming to employees or any changes expected in expenses to come.

In addition torepparttar 141517 fixed expenses, you must determine what your variable expenses will be. Variable expenses are just as they sound, they are expenses that will change or vary depending on sales. Some examples arerepparttar 141518 cost of goods for resale, as well asrepparttar 141519 cost of labor in some service industries. In addition, advertising expenses, commissions, and payroll taxes can vary. You should list outrepparttar 141520 different categories you have deduced to be variable, and then allocate percentages throughout.

Fixed Expenses Variable Expenses

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