When buying a vacation home abroad there are a number of key considerations to bear in mind to avoid some of the traps and pitfalls sometimes associated with buying long distance and in an unfamiliar country.  With these 5 tips for overseas vacation home buying success you can quickly cut a swathe through the research process and move towards securing the dream swiftly and securely.

Tip One ñ Learn the Rules and Regulations

Different countries have different rules relating to the right or otherwise of foreign citizens to own the freehold title to immovable property.  Some widely publicised destinations don’t allow foreigners to directly own the land on which their property sits (Bulgaria) or more than one property (Cyprus) for example, and some countries are less economically or politically stable than your own which can mean that real estate related rules and regulations may change in the future.  Make sure you’re comfortable with the workings of the country you’re considering buying a vacation home in, and if in doubt seek professional advice about that country and the ambitions you hold for owning a holiday home in it.

Tip Two – Good Investment/Bad Investment

If you’re buying a vacation home with a hope that it will go up in value and be not only a family retreat but a great asset, know that real estate, just like any investment commodity, can go down in value as well as up.  Furthermore not all countries have a real estate economy the same as the one in your own country ñ a little research would be wise into the historic nature of the property market in your country of choice as well as predictions for its future.  While such data is not a direct indication of how well your investment will perform it will arm you with more data to hopefully make your decisions easier.

Tip Three – Title Deeds and Legalities

Legal systems and the title deed registration process differ from country to country therefore know your legal rights and try and find out about the essential searches, surveys and title deed checks that need to be conducted before you should commit to buying your overseas vacation home.  Never enter into any form of contractual agreement without the direct assistance of an independent lawyer and never accept someone’s word that a vacation home has its permissions and title deeds valid and up to date.  Insist on seeing and checking all important facts and data before signing on the dotted line.

Tip Four – Accessibility and Desirability

If you’re thinking about making an income from your vacation home or even hoping to holiday in it yourself regularly, one of the most important factors to bear in mind is the accessibility or otherwise of your vacation home.  If your real estate is difficult to reach, with many miles to traverse and complicated and expensive plane journeys to plan, then it will just become a less desirable commodity over time. While a vacation involves getting away from it all and escaping every day life, a vacation destination and home should be easy and affordable to reach.

Tip Five – Enlisting Assistance

Consider enlisting the help of a reputable real estate agent, an independent lawyer and if you want to make money from your vacation home, a property management service.  Such professionals can save you time, effort and money and they can make the whole process of buying and owning a vacation home that much simpler.  Make sure you take references, examine credentials and see qualifications before employing anyone to assist you however, and if at all possible seek recommendations because anyone who does a good job will always get good press!

OVERVIEW
A Section 1031 Exchange allows you to exchange like-kind investment properties without triggering the payment of capital gains tax.  As your property assets appreciate in value you have the ability to upgrade into larger properties with greater cash flow.  Section 1031 also gives you the flexibility to exchange your rental properties that have appreciated in value in hot markets, and re-invest into lesser-known areas that are expected to develop and become the next hot market in years to come.  You can continuously defer these capital gains taxes as you continue to pyramid your property investment portfolio into larger and larger properties.

1031 EXCHANGE BENEFITS
There are a lot of benefits to considering the use of a 1031 exchange:

TAX DEFERRED INVESTING
The ability to re-invest your entire property equity without tax erosion can significantly enhance the amount of capital that stays invested and can make it easier to upgrade into higher value properties with greater cash flow.  

INCREASE CASH FLOW
This decision to upgrade into higher quality properties with greater cash flow can occur faster now that taxes are a lower priority transaction decision.  In some markets the real estate values can get ahead of the available cash flow available from the property.  In these situations it may make sense to lock in your gain and look to re-invest in another property where you can achieve higher cash flow returns.

TIMING THE MARKET
The ability to speculate on the next hot market area or region is a much easier decision under a 1031 exchange.  Why not lock in your profits on property that has already risen dramatically in value and re-invest it in the next hot market?  As long as your capital gains are deferred making these transaction decisions is easier.

COMPOUND RETURNS
If you are stepping up your portfolio through a series of exchanges over time your full capital gain can be re-invested without tax consequence, resulting in accelerated equity accumulation.

FLEXIBILITY
The ability to switch into like-kind properties as defined in the tax code gives you a range of investment options and flexibility.  If you don’t want a lot of the headaches associated with managing property you can also consider Tenant in Common exchanges, which do qualify under Section 1031 of the tax code.

CONCLUSION
1031 tax exchanges gives real estate investors a lot more options and flexibility to make better investment decisions on their real estate holdings without the issue of tax over-riding sound judgment.  If you own a rental property or are considering it you owe it to yourself to see if a 1031 exchange is right for your circumstances.

Since 1990, a company called LandAuction.com has specialized in the auctioning of unimproved land. This company has created a specialized niche in the market and has been described as a leader in the industry of auctioning raw land all across North America.

The company has developed a reputation for finding property that matches the individual buyer’s needs, and is said to have established a solid, credible track record in the marketplace.

At the same time, the auction process offers buyers the comfort of knowing that they are buying property at a price determined by the market.

Here’s how the process works. Visitors to the Web site can click on the calendar page to learn when and where a land auction will be held. Auctions are held throughout the country in some of the fastest-growing areas of the U.S. at various convention centers and hotels.

Visitors to the site can then view the list of properties that will be available at the auction. Each property has a brief description and links to pages where buyers can see maps, aerial photos and any legal documents available for that property.

Once a potential buyer has identified a property he or she wants to purchase, the Web site suggests that the buyer contact a county planning department, speak with local realtors, read through area real estate ads and decide how much the property is worth. That way, at the auction, buyers can set the price for the properties they want and bid accordingly. Buyers are urged to decide on a maximum bid before they go into the auction.

Prospective buyers are encouraged to inspect a property before they buy. Walking the property, asking local developers pertinent questions, and meeting with brokers and bankers in the area are all steps they can take.

The company offers financing for any purchase over $1,000.

Most people would not consider this a fair deal and either reject the offer or request a lower price. This should be the same thought process when the appraisal district over-assesses your business personal property (BPP). Texas law requires business owners to report BPP, personal property used for the production of income, to the appraisal district for assessment and taxation. Although there are no criminal penalties for not complying with the law, there is a penalty of 10% of the taxes. For example, if you have a BPP account assessed for $100,000, your annual BPP taxes are $3,000, based on a 3% tax rate. The 10% penalty for this BPP account would be $300 ($3,000 times 10% equals $300).

The huge range of assessed value for business personal property (BPP) makes obtaining substantial property tax reductions highly probable. It is not unusual for the range of assessed value for BPP accounts for similar properties to vary by 5,000%! For example, furniture and computers for companies within the same office building sometimes vary from $1 to $50 per square foot. Market value and unequal appraisal are two options for appealing BPP assessments. Given the inequity in BPP assessments and the subjectivity of valuing BPP, property owners have a high probability of success when properly prepared for a BPP assessment appeal. Protest both market value and unequal appraisal.

How to appeal?

To appeal your BPP, you can either use the Comptroller’s form, or send a letter to the appraisal review board (ARB) on or before May 31st of each year. The protest letter to the ARB should identify the property and the reason for your protest (section 41.44d of the Texas Property Tax Code).

Tips:

• Since the appraisal district’s staff tends to become more motivated to resolve appeals later in the season versus earlier in the season, it is better to appeal or protest on May 31st or shortly before the deadline date.
• Even if you do not receive a notice of assessed value for your BPP account, it is still important to send a written notice of appeal or protest. The appraisal district does not have to send a notice of your assessed value if the value does not change by more than $1,000. If the notice of assessed value gets lost in the mail, and you do not send a protest notice, you lose your right to appeal for the current year.

When sending a notice of appeal to the ARB, also send the appraisal district a House Bill 201 request. House Bill 201 refers to section 41.461 of the Texas Property Tax Code that allows property owners to obtain a copy of any evidence the appraisal district plans to use at the ARB hearing 14 days before the hearing. This request prohibits the appraisal district from using any information that was not provided to the property owner 14 days before the ARB hearing.

Market Value, Book Value & Comptroller Schedule

Three popular options for describing value for BPP are: market value, book value, and the Comptroller’s schedule. Market value is defined in section 1.04(7) of the Texas Property Tax Code that reads as follows:

“Market value” means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

(a) exposed for sale in the open market with a reasonable time for the seller to find a purchaser,
(b) Both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use, and
(c) Both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

Let’s compare the differences in value resulting from using market value, book value and the Comptroller’s schedule. The BPP for a typical motel room includes items such as bedding, linens, window air-conditioning unit, towels and a television. Based on market value, after one year, these types of items could probably only be sold for 10% to 30% of the original cost. Book value, based on federal depreciation schedules, indicates a value of 80% of the purchase price after one year. The Texas Comptroller’s schedule for BPP for motels has an eight-year life with 10% depreciation for the first seven years. Hence, the Comptroller schedule indicates one-year old hotel furnishings are worth 90% of their original purchase price. This is clearly inconsistent with market value for these items.

Inventory

There are a number of controversial issues related to how inventory is assessed. These include shrinkage, damage, functional obsolescence and economic obsolescence. For example, what is the market value of merchandise returned during the week after Christmas on January 1st (the effective date for valuation)? Since returned merchandise has usually been opened, damaged, missing parts or may be an unpopular item, it is worth less than cost in many cases. Market value is relevant in determining the assessed value for inventory for Texas BPP taxes.

Preparing A Summary For Your Hearing

The appraisal district would prefer to see a fixed asset listing, which includes the original cost and date of acquisition for every asset purchased. However, a fixed asset listing is not required. This is good news for small businesses that do not maintain a fixed asset listing.

Unequal appraisal

Assessed values for BPP accounts often range from ten-times to fifty-times on a per square foot basis for companies in the same industry. For example, real estate brokerage offices, which have 10,000 square feet of office space, may have assessments ranging from $10,000-$500,000. It seems unlikely that the computers and furniture in one brokerage office are 50 times as valuable as those in a competitor’s firm on a per square foot basis.

Appraisal districts tend to accept the assessed value rendered by property owners. Many large companies render using fixed asset listings. Appraisal districts use the cost basis information and the Comptroller’s schedule to calculate the “market value” for property. The valuations for these rendered accounts tend to grossly distort the actual value of these properties. Property owners who do not render have values on the lower end of the range of value. While it seems intuitive that appraisal districts would penalize owners who do not render by sharply increasing their assessed values, the practice is the opposite. Appraisal districts tend to reward property owners who do not render by leaving their assessed values at modest levels. This creates a disincentive to render. It also unequally taxes property owners who render with a fixed asset listing. These factors have caused a high degree of dispersion in BPP assessed values.

How To Appeal On Unequal Appraisal

Contrary to popular belief, it is possible to appeal BPP utilizing unequal appraisal, a concept that is fairly new. Most property tax consultants and large property owners have not considered or utilized unequal appraisal regarding BPP. Appraisal districts are resistant to the concept of appealing BPP based on unequal appraisal. (It is inappropriate to tax property owners who render using a fixed asset listing at the highest level, based on utilizing the Comptroller schedule, when allowing property owners who do not render very lean levels of assessment.)

Preparing an appeal based on unequal appraisal for BPP is simple and straightforward. Start by obtaining information on the assessed value, and amount of office space/manufacturing or warehouse space for property owners similar to the subject property owner. This is typically done by using companies with the same Standard Industrial Code (SIC) as the subject property owner. You can obtain this information by sending an open records request to the appraisal district. When appealing, research the assessed value for your competitors. Compile data regarding the assessed value and building area for the subject and comparable accounts into a summary:
When should you appeal?

Appeal annually on market value and unequal appraisal. To effectively appeal on these two options, research unequal appraisal based on assessment comparables on the appraisal district’s web site and evaluate the market value of your BPP. After reviewing both the unequal appraisal and market value options, determine your primary focus for appealing your BPP account. If neither market value nor unequal appraisal provides a basis for appealing your property taxes, you can withdraw the notice of protest or just skip the hearing.

Tips for your hearing (Informal & ARB)

Informal hearing

• First meet with the appraiser and politely explain the basis for your adjustment. Give the appraiser a copy of your evidence and explain it in a methodical way.
• The appraiser will review your information and the information he/she has available, and will then likely make an offer to settle. Consider the appraiser’s offer and explain why your evidence is better than his/her evidence, and again request your value or a value between your value and his/her value.
• You will quickly learn the lowest value the appraiser is willing to accept. At this point, you need to either agree to that value or proceed to the Appraisal Review Board (ARB) hearing.
• If you settle the appeal at the informal level, you will not be able to pursue an ARB hearing or a judicial appeal. However, it does resolve the issue in a timely manner.

ARB hearing

• Introduction of the two parties at the hearing
• Explanation of the hearing process
• Property description (address any errors in the description of your property after the appraiser’s description of your property)
• Property owner presentation
• Questions from the ARB panel members
• Appraisal district presentation
• Rebuttal and closing evidence from the property owner
• ARB announces its decision

Summary Points

• Annual appeals will minimize your BPP property taxes.
• There are huge differences between the market value estimated by the Comptroller’s schedule and actual market value.
• Based on excessive assessments for BPP for companies who render using a fixed asset listing, a low percentage of property owners who render and the low assessed values for property owners who do not render, there are rich opportunities for appealing BPP by using unequal appraisal.

* Susan Sells DFW does not represent this article from a legal standpoint.  We recommend that you consult an attorney and/or accountant prior to making any decisions based on this information.

Recent years have seen the evolution of Myrtle Beach into one of the most popular destinations on the east coast. This has resulted in the creation of a thriving investment atmosphere with vacation rentals forming a solid backbone for the real estate industry. This takes nothing away from a historically active and stable residential core that also has created a secure and thriving business sector. It could be said that Myrtle Beach possesses “the full package” when considering a location for a new home or investment property.

Is it time to treat yourself to that dream home that you deserve? There is really no better place to look than Myrtle Beach. This area can boast excellent choice for entertainment and recreation. Of course the ocean provides any number of sporting options as well as great fishing and and the most breathtaking scenery available. There are really any number of reasons to consider a move to Myrtle Beach, but then again, you likely already have your own reasons….

Dubai has started organizing an International Property Show in the recent times to help grow its own real estate smoothly. The latest edition of this show was held from April 3rd to 4th this year. Exhibitors from several European countries like Germany, France, UK and Spain made their presence felt. Several other players from India, China, Malaysia, Bahrain and Turkey also took part in the same event alongside. The three day long annual show is regarded by many as the most sought after in the Middle East. A 35% increase in the level of participation was recorded this year. The next year’s property event is slated to be held in February 2008.

This annual show features many advanced projects from across the globe involving leisure, commercial and residential properties. Deals outlining newer Dubai hotels and Dubai apartments are often sealed during the three-day annual event. Dubai’s hotel industry is already under pressure while trying to pace along its own tourism sector. Developers would surely like to explore possibilities for making newer world-class hotels in the years to follow.

The main purpose behind this show is to bring together city planners, property developers, financiers, real estate agents, consultants and designers under one roof. This year’s show was held during the International Property Week, thus allowing the visitors and participants to take part in a series of industry-specific workshops, conferences and seminars. New property laws were recently announced in the UAE allowing a major boost in the area of real estate. A basic platform for bringing together all property developers was urgently sought in this scenario. The International Property Show of Dubai has fulfilled the same emerging demand.

International companies succeeded in making a combined sale of $170 million in this year’s show.  A leading American real estate firm, named The Corcoran Group, alone made deals worth about $130 million. Its ocean liner named ‘The Orphalese’, launched during the three day event, generated many business queries. Notwithstanding the significance Dubai hotels and Dubai apartments might carry in this part of the world, ideas like ‘The Orphalese’ do also have a great future ahead. The liner is the largest to be built ever in its own class, roughly twice in size compared to the nearest model. It offers 200 permanent and 265 temporary units for stay. It also carries state-of-the-art business, leisure, medical and other necessary amenities on board.

From this study we shall be able to work out a little theory of landscape gardening.

Let us go to the lawn. A good extent of open lawn space is always beautiful. It is restful. It adds a feeling of space to even small grounds. So we might generalize and say that it is well to keep open lawn spaces. If one covers his lawn space with many trees, with little flower beds here and there, the general effect is choppy and fussy. It is a bit like an over-dressed person. One’s grounds lose all individuality thus treated. A single tree or a small group is not a bad arrangement on the lawn. Do not centre the tree or trees. Let them drop a bit into the background. Make a pleasing side feature of them. In choosing trees one must keep in mind a number of things. You should not choose an overpowering tree; the tree should be one of good shape, with something interesting about its bark, leaves, flowers or fruit. While the poplar is a rapid grower, it sheds its leaves early and so is left standing, bare and ugly, before the fall is old. Mind you, there are places where a row or double row of Lombardy poplars is very effective. But I think you’ll agree with me that one lone poplar is not. The catalpa is quite lovely by itself. Its leaves are broad, its flowers attractive, the seed pods which cling to the tree until away into the winter, add a bit of picture squeness. The bright berries of the ash, the brilliant foliage of the sugar maple, the blossoms of the tulip tree, the bark of the white birch, and the leaves of the copper beech all these are beauty points to consider.

Place makes a difference in the selection of a tree. Suppose the lower portion of the grounds is a bit low and moist, then the spot is ideal for a willow. Don’t group trees together which look awkward. A long-looking poplar does not go with a nice rather rounded little tulip tree. A juniper, so neat and prim, would look silly beside a spreading chestnut. One must keep proportion and suitability in mind.

I’d never advise the planting of a group of evergreens close to a house, and in the front yard. The effect is very gloomy indeed. Houses thus surrounded are overcapped by such trees and are not only gloomy to live in, but truly unhealthful. The chief requisite inside a house is sunlight and plenty of it.

As trees are chosen because of certain good points, so shrubs should be. In a clump I should wish some which bloomed early, some which bloomed late, some for the beauty of their fall foliage, some for the colour of their bark and others for the fruit. Some spireas and the forsythia bloom early. The red bark of the dogwood makes a bit of colour all winter, and the red berries of the barberry cling to the shrub well into the winter.

Certain shrubs are good to use for hedge purposes. A hedge is rather prettier usually than a fence. The Californian privet is excellent for this purpose. Osage orange, Japan barberry, buckthorn, Japan quince, and Van Houtte’s spirea are other shrubs which make good hedges.

I forgot to say that in tree and shrub selection it is usually better to choose those of the locality one lives in. Unusual and foreign plants do less well, and often harmonize but poorly with their new setting.

Landscape gardening may follow along very formal lines or along informal lines. The first would have straight paths, straight rows in stiff beds, everything, as the name tells, perfectly formal. The other method is, of course, the exact opposite. There are danger points in each.

The formal arrangement is likely to look too stiff; the informal, too fussy, too wiggly. As far as paths go, keep this in mind, that a path should always lead somewhere. That is its business to direct one to a definite place. Now, straight, even paths are not unpleasing if the effect is to be that of a formal garden. The danger in the curved path is an abrupt curve, a whirligig effect. It is far better for you to stick to straight paths unless you can make a really beautiful curve. No one can tell you how to do this.

Garden paths may be of gravel, of dirt, or of grass. One sees grass paths in some very lovely gardens. I doubt, however, if they would serve as well in your small gardens. Your garden areas are so limited that they should be re-spaded each season, and the grass paths are a great bother in this work. Of course, a gravel path makes a fine appearance, but again you may not have gravel at your command. It is possible for any of you to dig out the path for two feet. Then put in six inches of stone or clinker. Over this, pack in the dirt, rounding it slightly toward the centre of the path. There should never be depressions through the central part of paths, since these form convenient places for water to stand. The under layer of stone makes a natural drainage system.

A building often needs the help of vines or flowers or both to tie it to the grounds in such a way as to form a harmonious whole. Vines lend themselves well to this work. It is better to plant a perennial vine, and so let it form a permanent part of your landscape scheme. The Virginia creeper, wistaria, honeysuckle, a climbing rose, the clematis and trumpet vine are all most satisfactory.

close your eyes and picture a house of natural colour, that mellow gray of the weathered shingles. Now add to this old house a purple wistaria. Can you see the beauty of it? I shall not forget soon a rather ugly corner of my childhood home, where the dining room and kitchen met. Just there climbing over, and falling over a trellis was a trumpet vine. It made beautiful an awkward angle, an ugly bit of carpenter work.

Of course, the morning-glory is an annual vine, as is the moon-vine and wild cucumber. Now, these have their special function. For often, it is necessary to cover an ugly thing for just a time, until the better  things and better times come. The annual is ‘the chap’ for this work.

Along an old fence a hop vine is a thing of beauty. One might try to rival the woods’ landscape work. For often one sees festooned from one rotted tree to another the ampelopsis vine.

Flowers may well go along the side of the building, or bordering a walk. In general, though, keep the front lawn space open and unbroken by beds. What lovelier in early spring than a bed of daffodils close to the house? Hyacinths and tulips, too, form a blaze of glory. These are little or no bother, and start the spring aright. One may make of some bulbs an exception to the rule of unbroken front lawn. Snowdrops and crocuses planted through the lawn are beautiful. They do not disturb the general effect, but just blend with the whole. One expert bulb gardener says to take a basketful of bulbs in the fall, walk about your grounds, and just drop bulbs out here and there. Wherever the bulbs drop, plant them. Such small bulbs as those we plant in lawns should be in groups of four to six. Daffodils may be thus planted, too. You all remember the grape hyacinths that grow all through Katharine’s side yard.

The place for a flower garden is generally at the side or rear of the house. The backyard garden is a lovely idea, is it not? Who wishes to leave a beautiful looking front yard, turn the corner of a house, and find a dump heap? Not I. The flower garden may be laid out formally in neat little beds, or it may be more of a careless, hit-or-miss sort. Both have their good points. Great masses of bloom are attractive.

You should have in mind some notion of the blending of colour. Nature appears not to consider this at all, and still gets wondrous effects. This is because of the tremendous amount of her perfect background of green, and the limitlessness of her space, while we are confined at the best to relatively small areas. So we should endeavour not to blind people’s eyes with clashes of colours which do not at close range blend well. In order to break up extremes of colours you can always use masses of white flowers, or something like mignonette, which is in effect green.

Finally, let us sum up our landscape lesson. The grounds are a setting for the house or buildings. Open, free lawn spaces, a tree or a proper group well placed, flowers which do not clutter up the front yard, groups of shrubbery these are points to be remembered. The paths should lead somewhere, and be either straight or well curved. If one starts with a formal garden, one should not mix the informal with it before the work is done.