Hot Property

Climate change will affect real estate values all across America. Is Vancouver the next Napa?

The view from the terrace, 11 floors above Miami's trendy South Beach, is dominated by a sweep of Atlantic Ocean that edges along a narrow arc of beach and stretches out to a flawless horizon. It is the kind of view that has enticed millions to invest in a booming South Florida real estate market. Now, after three years of devastating weather events, that boom has gone bust, and even after carefully pricing the condominium to undercut several others for sale in the building, the owner had to cut the price not once but twice before it sold. At a loss. "The market is flooded with properties," says Phyllis D. Hugunien, a Realtor for FX Realty Corporation. "They aren't selling. We're seeing price reductions of $20,000, $50,000, and more. Buyers are nervous about the future."

So it goes in post-Katrina Florida, New Orleans, and the Mississippi Gulf Coast. While scientists and politicians quarrel over just how much impact climate change is having on the planet, the market has made its own decision. Anyone who owns property in these regions has watched his investment wither. And anyone thinking of buying property there will have to pay a "global warming premium" in the form of higher insurance rates.

Homeowners elsewhere shouldn't feel particu­larly secure either, according to Andrew Logan, director of insurance at Ceres, a nonprofit network of investors concerned with environmental sustainability. "The hot spot for now is Florida and the Gulf Coast, but looking to the future, climate change is going to be a huge issue in the whole country," he says. Insurance rates are already rising, and some companies are limiting coverage all the way up the Eastern seaboard to Massachusetts. Why? There's an increased risk posed by rising sea levels coupled with the prospect that unusually destructive hurricanes will be drawn northward as the Atlantic Ocean grows warmer.

What of these other hot spots? Suppose you want to buy property and you're looking at a 30-year ­mortgage. Should you consider the impact climate change might have on its value three decades from now? Insurance companies do. "Anyone thinking of making an investment in a property should consider what it will look like in 20 to 30 years," says Robert Muir-Wood, Ph.D., chief research officer at Risk Management Solutions. Will there be snow at your ski chalet? Will the shoreline stay put under your beach house? What about storms and the overall ecosystem? "If you don't find out, someone else will," says Muir-Wood, "and he'll use that information to devalue your property if you ever want to sell it."

Thanks to a report released in February by the Intergovernmental Panel on Climate Change (IPCC), the information that would devalue your property is easy to get and quite authoritative. The report states unequivocally that the earth is heating up as a result of the accumulation of greenhouse gases in the atmosphere. Over the past century, average temperatures increased 1.4 degrees, and they're projected to rise 3.5 to 8 degrees over the next hundred years. Sea levels rose by six to nine inches in the 20th century and are projected to rise anywhere from seven inches to two feet over the same time frame going forward. And these numbers are on the conservative side, because the panel is barred from considering hypothetical conditions. Estimates of sea-level rise, for example, do not include the levels that would be reached if, say, Greenland's ice sheets continued to melt at an accelerated rate. Just two feet in sea-level rise would engulf much of South Florida and the Keys, Texas's Padre Island, and barrier islands along the coast from Maryland to the Carolinas. At 15 feet, it's good-bye Florida, Cape Cod, Long Island...you get the picture.

The effects won't be uniform around the globe. The poles are likely to grow disproportionately warmer than the planet's midsection. Precipitation patterns also will shift poleward, exacerbating drought conditions in temperate regions. And the warming will produce more extreme weather conditions everywhere, more powerful hurricanes in the Gulf, more flooding along rivers in the middle of the country, less snow in some areas, more in others. The time to assess the relative risks of buying a cottage on Lake Michigan or a Miami Beach condo is now--before the next storm hits.

South Florida and the Keys

Okay, this may seem like piling on, but if there were ever a place where the risks of freaky weather should be factored into real estate decisions, this is it. Even scientists who won't swear that climate change guarantees more hurricanes that are more powerful do believe rising sea levels and run-of-the-mill storms could make Florida a challenging place to own property, if for no other reason than the insurance costs. Most companies won't write homeowners policies here, and those that do have been raising premiums at double- and triple-digit rates. To take up the slack, the state was forced into the insurance business. In fact, the largest insurer in Florida is Citizens Property Insurance, a state-owned corporation that holds the policies on 1.3 million households. Citizens couldn't hold the line on premiums either, and Florida found itself in a crisis that state lawmakers tried to solve by legislating a premium cap. The plan would increase subsidies for both private insurers and policy­holders. How? By transferring more risk to Floridians. "There are limits on how much liability the state can take on without being overwhelmed financially," says Ceres's Logan. "If Miami were hit by a major hurricane, the state would be on the hook for most of that damage. Where are those tens of billions of dollars going to come from? The taxpayers."
Barrier Islands Along the Atlantic Shore

Hop on a boat in New York City and you can cruise down the coast to Myrtle Beach, South Carolina, without venturing outside an inland waterway created by a chain of barrier islands. These slivers of sand have, for centuries, taken the brunt of whatever mischief the Atlantic threw at the coastline. But with its new climate-change-driven ferocity, that mischief is beginning to take its toll. Most vulnerable are the heavily developed islands from Atlantic City, New Jersey, to Rehoboth Beach and Bethany Beach, in Delaware.

The problem for all the barrier islands--and the beaches of Florida--is erosion. For decades, these communities have been fighting a more or less successful war to save their shorelines, but climate change is tipping the balance in Mother Nature's favor. Take Rehoboth Beach. "In the last hundred years, erosion on the Delaware coast has eaten up about three feet of shoreline a year," says Stephen P. Leatherman, Ph.D., director of the Laboratory for Coastal Research at Florida International University, in Miami. "If the rate of erosion doubles, which is possible with current climate-change projections, erosion losses would jump to six feet per year." Roll those numbers out over the life of a 30-year mortgage, and Rehoboth Beach loses a whopping 180 feet of shoreline. "Right now, most of the houses along the shore are within that 180 feet," says Leatherman. Buy a house on the beach and you could easily lose it before you've paid for it.
New England Ski Resorts

The relationship between warming climates and skiing seems obvious: no freezing temperatures, no snow. "Even if you're making snow, the temperature outside has to be less than 32°F," says Robert Mendelsohn, Ph.D., a professor at Yale University.

And even if you didn't mind trudging across grassy fields and up the lift to get from your ski chalet to a trail covered in man-made snow, simple economics threatens these operations. Bruce McCarl, Ph.D., regents professor of agricultural economics at Texas A&M University, coauthored a report in BioScience that states the cost of making snow at -12ºC is five times cheaper than at -2ºC. A big resort can spend more than $100,000 a night making early-season snow. Shorter, warmer ski seasons and significant increases in snowmaking costs add up to an economic double whammy. In the next few decades, many ski areas will become more expensive to operate and may have to be abandoned, says McCarl.

Wine Region of Northern California

Growing grapes is easy. Growing grapes that make good wine is hard. Since the 1970s, one of the most productive regions for good wine grapes has been the Napa and Sonoma valleys of Northern California. Ironically, part of the reason for that success has been global warming, according to Rama Nemani, a research scientist at NASA's Ames Research Center at Moffitt Field, California. As warming moves northward, it can push marginal climates into a sweet spot that is beneficial for a while. In Northern California, the climate trends that began in the 1970s ushered in a period of high-quality vintages. In those 30 years, the frost-free season expanded by about 40 days. "That's an incredible amount of warming," says Nemani, "and it allowed the growers to leave grapes on the vine a lot longer so that the berries could be harvested at the optimum moment."

As the warming continues, the sweet spot moves farther north, and Napa and Sonoma's time may be coming to an end. Last year, the area suffered through periods of 103°F temperatures. "The vineyards can handle temperatures in the mid 90s," says Nemani, "but not that high." What if extreme weather becomes more common over the next 10 to 20 years? "If you look at the spread of vineyards, you see every decade that more are moving north, no doubt about it. Washington and Oregon are beginning to produce the quality of wines that Northern California does." A study published in the 2006 Proceedings of the National Academy of Sciences estimates that the number of American vineyards will drop by 81 percent by mid-century, with most of the wine production limited to the Northeast, Northwest, and a narrow strip along the West Coast.

And now vineyards in British Columbia are making good wines. "The Canadians are rubbing their hands together over the prospect of wineries on Vancouver Island and the Okanagan Valley. They think they're going to hit the jackpot with global warming," says David Graves, one of the owners of Napa's Saintsbury vineyard. There goes that sweet spot.
Rocky Mountains, Colorado

One of the most beautiful excursions in the United States is along Trail Ridge Drive over the Continental Divide. The road starts on the front range of the Rocky Mountains and climbs above the tree line into the rarefied air of the 11,000-foot Milner Pass. Once across the divide, the road winds down into a high valley where Grand Lake, the state's largest, is surrounded by mountains blanketed in thick, green pine forests. At least, that's how it was a decade ago. Today, those slopes aren't green. They're covered by dead, rust-brown trees, all killed by an onslaught of the mountain pine beetle.

The losses are staggering. In each of the past two years, the beetles killed up to 80 percent of the lodgepole pines on almost a million acres in the northern Rockies. Some of these trees are 70 to 80 years old, so it will take a hundred years to get things back to where they were. "There have been insect outbreaks as long as there have been trees, but the outbreaks we're seeing today are unusual," says Bill Romme, Ph.D., of Colorado State University's forestry department. "The beetles' life cycle has sped up, which means there are many more beetles emerging. They've spread farther north and to higher elevations. It's all being driven by the increased temperatures."

The impact goes well beyond the unsightliness of dead trees. As more pines are felled by the beetles, ski slopes at Rocky Mountain resorts will find their runs unprotected from wind. Wildlife could be decimated by a loss of habitat. And, of course, there's the risk of fire. "If someone is trying to sell you a mountain cabin, and 80 percent of the trees around it are standing dead, I think you'd ask yourself what would happen if a lightning bolt hit nearby," says McCarl, of Texas A&M. Indeed.

The IPCC's 2007 report made headlines around the world because it stated "with 90 percent certainty" what the pine beetles in Colorado and vineyard owners in Napa Valley have known for some time: Global warming is a reality, and it's playing havoc with the pocketbooks and investments of ordinary people all across the country. The only uncertainty is how quickly the world will respond to the warnings and what the planet will look like in the end. "If the warming is held in check, on the lower end of the range that we think is possible, good things are going to outweigh the bad, by and large," says Mendelsohn, of Yale. But if nothing is done and the warming is allowed to become more severe, "it's clearly going to be very harmful."

By: Nancy F. Smith for Best Life

Forex? What is it, anyway?

The market

The currency trading (FOREX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are banks, organizations, investors and private individuals, just like you. (click here to read full market background by Easy-Forex™).

The goods (merchandise)

Markets are places to trade goods, and the same goes with FOREX. The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.

How does one profit in Forex?

Obviously, buy cheap and sell for more! The profit potential comes from the fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200).

How risky is Forex trading?

You cannot lose more than your "margin" (your initial investment)! You may profit unlimited amounts, but you never lose more than what you initially risked. However, risk only what you can afford and is not vital for your well-being.

How do I start trading?

Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-Forex™); start trading.

How do I monitor my Forex trading?

Online, from anywhere, anytime. You have full control to monitor status, check scenarios, change some terms in the deal, or close it.

Want to know more? Want to get on-line training? Register here (quick, no obligation), we'll be glad to guide you, every step of the way.

Good luck!

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

The Basics of Dividends

What exactly are dividends? You've heard that you can make money by investing in companies that pay dividends, but how does that work?

By: Martin Lukac

When companies make profits, they often distribute a portion of the profits to the shareholders. The company will retain a portion of the profits for future use. Some companies hold a large portion back while others are generous in their dividend payments -- it depends on where the company is and how well it is doing financially.
Dividends are often in the form of cash, yet some companies issue stock instead. Stocks that have a good history of paying dividends are attractive to investors. These companies are solid and profitable, but often offer little growth potential in their stock. The dividend actually gives an investor a reason to purchase the stock.
The company is under no obligation to pay a dividend. There isn't a preset amount that they must pay stockholders. The company board of directors determines the dividend amount. If the company is in financial trouble or facing an overhaul, the board has every option to forego the dividend. One of the warning signs that a company is in trouble is the elimination of dividend payments.
The dividend is set at a per share basis. For example, the board may decide on a $0.30 dividend per share. If you own 1,000 shares of stock, you will get a check for $500. If you own 100 shares of stock, you can expect a check for $50.
The board sets the dividend and announces when stockholders can expect checks at the declaration date. The ex-dividend date will also be announced at this time. The list of shareholders to receive the dividend will be set on the record date. If you want to get the dividend, you must own the stock before this date.
The ex-dividend date falls a couple of days before the record date. This date allows for the completion of pending transactions. If you want to own the stock and receive the dividend, you need to have your transaction through by this date. After the ex-dividend date, the market will discount the stock's price because the dividend will no longer be available to buyers.
The payment date is when the company actually mails the checks. This usually occurs two weeks after the record date.
There are two types of dividends: fixed and variable. Fixed rate dividends go to the owners of preferred stock. Common stock holders receive variable dividends.
Dividends are a great way to make money and often offer a fairly steady income if the stocks are chosen wisely. Many investors find that buying stocks with a good history of dividend payments is good for the growth of their portfolios.

Investing in a Bahamas Property

Exuma is a string of islands and cays, home to forgotten hideaways, natural harbors, secluded beaches and a coastline of over a hundred miles of clear, blue water. Exuma is a nature lover's paradise preserved in its original pristine setting. In recent years, The Bahamas has become one of the world’s financial centers, with over 400 banks located in Nassau, its capital.

By: Pasquale Lo Mascolo

The country’s open economic policy has drawn capital from around the world, and is now a hot real estate market. Bahamas property has become of great interest to investors and a haven for those wanting to own private homes surrounded by the wonders of nature. Local realtors see no end in sight with regards to the increasing demand for Bahamas property.
Buying Bahamas property
In 1993, the Bahamas government enacted a law encouraging non-Bahamians to acquire real estate in any of the 21 districts. It also allows property owners and their dependents to apply for an annual resident card or permanent residency. It is now easier than ever to own a piece of Caribbean paradise. Contact one of the country’s numerous realtors to help you find that perfect spot. Visit The Bahamas Real Estate Association for a complete list of certified agents and details on purchasing Bahamas property. Prior Government approval is not required for non-Bahamians who want to purchase residential properties of less than five acres, although they are required to be registered with the Investments Board and the Central Bank. Another option is to buy property directly at a development. On the island of Great Exuma for example, see Oceania Properties (http://www.oceaniaproperties.com/), February Point (http://www.februarypoint.com/), or Crab Cay (http://www.crabcay.com/) for some luxury properties.
An enticing investment
As the world’s premier tax haven, The Bahamas offers the perfect investment opportunity as there is no personal, corporate, income, capital gains, estate, gift or inheritance taxes. Easy access to major world markets, as well as political stability and security are the advantages of business in The Bahamas. Investors are also attracted to the stability of the economy, which is steadied by the solid value of the Bahamian dollar (pegged to the U.S. dollar on a 1:1 ratio). The benefits of renting
Having a corporate or personal address in the Bahamas provides opportunities to live an exclusive island lifestyle while generating tax-free income. As you enjoy the benefits of a vacation home in The Bahamas, your investment appreciates. When you are not there basking in the sun, you can consider renting out your Bahamas property. The rental segment of the market is huge as many visitors flock to the islands every year in search of a little rest and relaxation. Luxury condos, houses and villas generate top dollars for their owners. Many realtors and property managers agree that renting a property is a great idea since it helps the owners defray some of the costs associated with owning and maintaining their properties. There are rental pools that you can join whereby property managers will oversee all of the administrative details associated with renting. You have no worries, no headaches, and best of all, your home in the sun is well-maintained and available to you at the drop of a hat.
In order to preserve the culture and tranquility of the island, Exuma has regulated that no more than 30% of the island may be developed. Luxury rental properties in Exuma generally offer complete privacy, are exquisitely furnished, and include first-rate amenities. Purchasing a Bahamas property either as a vacation destination or as a rental property offers the advantages of numerous commercial flights, private airports, and close proximity to the United States. Feel right at home in The Bahamas.

How to Create a Real Estate Cash Flow

Most of us step into the real estate market in the hope of making huge profits. The real estate market gives returns for your money like no other market. However, you should know the rules of the game to be in a win-win situation. Property investments entail several other tasks, like maintenance and renovation, which can deplete your bank accounts. In order to sustain high maintenance costs, it is imperative to create a real estate cash flow that can take care of the additional costs, and yet leave you with substantial profits.

By: Kris Koonar

One of the best methods of creating a real estate cash flow is to invest in real estate and resell the properties in back-to-back closings. Many investors these days flip their properties in this fashion to maintain the cash flow. However, flipping properties may not be very easy if you are new to the real estate game. You need to be constantly on your toes to ensure that the cash flow comes in as planned. You have the option of flipping properties for a cash payment of the total amount, or a partial amount and a promissory note. A promissory note guarantees you a monthly income for a long time.
For flipping properties, you need considerable amount of cash. If you are considering a mortgage loan, it becomes necessary that you recover the amount from the sale of your property to settle that loan. Investors can opt for the Wraparound transaction. It allows investors to create a new loan without disturbing the first mortgage. The new buyer pays you, and you in turn repay your earlier loan. The difference between the two payments is the cash flow you have managed to earn for yourself.
It may not be very easy for new investors to get liquid cash to circulate in the real estate market. However, you can invest in a joint venture by finding a partner who has a good credit limit and provable income. As partners, you also have the option of forming an LLC, or a Limited Liability Company, of which both have a fifty-fifty percent partnership. The next step is to find good real estate in middle class neighborhoods that are usually at least ten percent cheaper than other properties.
After finalizing a particular property, execute a resolution through the LLC that the investor partner is planning to buy a property in his name for the benefit of the LLC. The resolution should subsequently be followed by the purchase of the property. As agreed upon earlier, your partner investor will use his own down payment and credit to pay for the property. After the purchase, your partner investor needs to advertise it for sale, specifying credit not required. When considering offers from prospective buyers, focus on those that will pay at least ten percent more than the appraised value of the property. Ideally, choose a buyer who is willing to put down ten percent or more as a down payment. The investor gets the funds to recover his initial investment, while you enjoy part of the cash flow earned from the deal.
Seller financing is also a good option if you are looking for convenient payment options. Seller financing eliminates the hassles associated with credit check and delayed funds when obtaining home loan from the financial market.

Article Source: http://content.infowizards.com

Real Estate Investments are easy with Real Net USA's easy process. Using little or even no money down you can own a Real Estate Investment. Discover a ton of free Real Estate Resources at www.realnetusa.com

Diamonds, For Investment Or Pleasure?

Most diamonds sold to the general public are known as slightly imperfect. Slightly imperfect diamonds are not easily spotted by the trained eye. The regular person would probably never even notice the imperfections.

By: Mitch Endick

After the slightly imperfect stones come those that are frankly imperfect. Frankly imperfect stones have rather large or numerous flaws and visible carbon spots. Imperfect stones imperfections can sometimes be spotted by a normal observer without a glass! Frankly imperfect stones are great for people who want big stones but do not want to pay the money for fine gems. Frankly imperfect stones give the buyer more bang for the buck. At a little bit of distance the stones may appear brilliant.
It may be a better idea for purchasers to buy better grade diamonds. If someday you have to dispose of your diamonds they will almost always be appraised by those who are trained to detect flaws and bad color. The resale value of a fine stone will always yield better money than a larger more imperfect one. Large imperfect diamonds sell, but they rarely ever sell themselves. Fine diamonds will almost always find a buyer if they are offered a little under the market price.
A few words as to the best means of detecting flaws in diamonds may not be out of place. You must always possess a good lens. A good lens is key for detecting flaws and color. A good light is also a necessity. The inspector needs a light that falls freely upon it. Diamond forceps should always be used to hold the stones. A persons fingers are to big and clumsy. Peoples fingers also soil stones and make them dull and dirty.
It is extremely important to always examine a stone unset, the mounting may hide some imperfections. Many diamond owners and dealers have found imperfections in set stones months after ownership and examination. To properly observe a diamond one must start with the back of the stone, first dimming it with the breath. Often diamond cutters will often leave flaws so they are not visible from the front, but they are often very evident from the back. This is why examinations usually begin from the back. If no flaws are evident, examine the stone slowly and carefully through each rear facet. Then turn the stone over, dim it, and check the front of the stone for flaws. If none are seen, look through each of the front facets turning the stone slowly.
While examining a stone make sure that any apparent defects are not actually small spots of dirt sticking to the opposite surface. It is also very important not to mistake a reflection of thick spots on the girdle for flaws. Some times stones are cut too shallow. These stones will often times show reflections through the table. These stones are less brilliant, and also far less desirable. These stones may seem imperfect when actually they may be perfect in crystallization, although not in make.
If no defects are discerned, rest the eye for a few moments and inspect the diamond once again. This time look for small specks and feathers. Be on the lookout for small reflections on the surface as well as on the interior of the stone, as cracks that have reached the surface may be discerned.
Sometimes diamonds have knots, or spots where part of the diamond does not go with the grain. These spots are very hard to polish correctly and often times cannot be made completely flat. It is essential to find this type of flaw if it exists. This type of defect is very hard to spot. Often times it will never be noticed by the general public, and sometimes not even by the dealer. When a valuable gem is in question, and time is not of the essence, save a final decision till after a second thorough examination on another day.

Article Source: http://content.infowizards.com

Mitch Endick is a short article writer for the popular jewelry site: JewelrySalesandService.com. Provides information on jewelry, rings, earrings, bracelets, necklaces and watches. His website,www.JewelrySalesandService.com also has information on diamonds, birthstones, gemstones, pearls, gold, sterling silver,and platinum.