Investment Information

Master limited partnerships are a form of limited partnership (isn’t it obvious from the name!) which combine themselves with the liquidity of a common share. The structure of an MLP resembles a partnership, but offers investment units like common stock and to be traded on a common platform such as a stock market. Like a limited partnership, the MLP has a general partner and limited partners. The general partner is mostly the sponsor corporation (e.g. Kinder Morgan Inc. owns the general partner of Kinder Morgan Energy Partners LLP) or one of its operating subsidiaries and is responsible for the operations of the company and, in most cases, is liable for partnership debt. The individual unit holders are retail investors, who contribute capital and receive up to 90% of handy cash flow as distributions in a stated year but have no day-to-day management role in the partnership. In the Tax Reform Act of 1986 and the Revenue act of 1986, the current structure of the MLP was defined and eligibility of an enterprise to issue MLP was stated- any business with a durable in flow of money was allowed (dealing with common resources principally)

The driving force behind a company to organize MLPs is tax avoidance. A shareholder in a corporation will have to pay tax at two levels- one at the corporate level and secondly at the individual level (when the dividends are shared). However, in a limited partnership tax has to be paid only once- at the personal level. There is no partnership equivalence of corporate income tax. In an MLP, the tax accountability of the partnership is passed on to the unit holders. The investor would receive annually a notification of his or her shares and profits.

Mostly MLPs have heterogeneous yields and tax avoidance, with mostly companies offering really attractive yields. The shareholders normally have the percentage revenue of 3-4% of general partnership and 7-8% of limited partnership. The tax benefits combine to the value. Cash flow would commonly better that of the taxable income of the partnership, and while doing so the dissimilarity is considered as a capital return for the limited partner. This return is apt to be taxed when sold to the unit share holder. This deferral causes the unit holders to pay an effective tax of less than 10% (and this rate may at times even go down to 0!). However incomes from MLPs are taxable even in retirement accounts like 401K s and IRAs. This causes investors to move away from MLPs when in retirement accounts. This applies equally in case of institutions as well.

In an period earlier the MLP, it was many times needful to create a minimum investment (which many times turned out to be quite a appreciable amount) to take part in a partnership, limiting the potential equity market to entities from the upper-income range. Once a partnership was created were extremely burdensome to withdraw from if an investor wished to strip earlier liquidation. The MLP business structure addressed these issues by breaking partnership interests into smaller, more affordable units that are purchased and sold, equivalent to stocks or mutual fund shares. This attribute greatly enhances the liquidity of the partnership while also opening the door to investors for far less capital.

10 Reasons Why Gold Should Be Part of Your Investment Portfolio

Gold has been used for countless centuries as an indication of wealth, power and honor, but it has also been a fantastic investment choice. Why? Well, because it is what has essentially set the standard throughout monetary history. Here are ten reasons that you should consider gold as a part of your investment portfolio:

1. Of all precious metals, gold has traditionally been the first choice for hedging investments against inflation, political crisis or economic uncertainty.

2. As of the time of this writing, gold is trading at $1519.00 per ounce. Just 6 years ago, though, it was trading at just $513 per ounce. That’s a significant return for anyone that invested in gold in 2005 and held onto it.

3. Gold is driven by the age old system of supply and demand, but speculation also plays a part in determining the price of this precious metal. Yet, unlike most available commodities, consumption doesn’t affect its price as much as savings and disposal do.

4. While investors’ return on equities, real estate and bonds do not compensate for inflation or risk, gold’s demand increases.

5. Jewelry accounts for more than two-thirds of the demand for gold.

6. Industrial, medical and dentistry uses of gold account for about 12% of the demand for gold.

7. During war or hard economic times, gold is seen as an asset that will always be able to purchase food, shelter or transportation. This is why the demand for gold tends to rise during periods of uncertainty.

8. Gold can be purchased and held in coin and bar form, giving the purchaser immediate access to his or her investment.

9. Gold can also be traded through the stock exchanges in the form of ETFs, CEFs and ETNs. In addition, derivatives like gold futures, forwards and options can be traded as well.

10. Additional gold investments include certificates, accounts and investments in gold mines.

Besides its widespread monetary and symbolic functions, gold has many practical uses in dentistry, electronics, and other fields. Its high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity lead to many uses of gold, including electric wiring, colored glass production and even gold leaf eating.

Gold has been highly valued in many societies throughout the ages. In keeping with this it has often had a strongly positive symbolic meaning closely connected to the values held in the highest esteem in the society in question. Gold may symbolize power, strength, wealth, warmth, happiness, love, hope, optimism, intelligence, justice, balance, perfection, summer, harvest and the sun.

Gold represents great value. Respected people are treated with the most valued rule, the “golden rule”. A company may give its most valued customers “gold cards” or make them “gold members”. We value moments of peace and therefore we say: “silence is golden”. In Greek mythology there was the “golden fleece”.

Gold is further associated with the wisdom of aging and fruition. The fiftieth wedding anniversary is golden. Our precious latter years are sometimes considered “golden years”. The height of a civilization is referred to as a “golden age”.

About/Bio:

Silver Scott Mines is a publicly traded (ticker symbol: SILS.PK) development stage precious metals company that currently operates in Mexico through a wholly owned subsidiary, Minera Mystery S. de R.L. de C.V. Find out more about the company’s mining operations at http://www.silverscottmines.com/

There are a lot of great reasons to invest in an IRA. A lot of the reasons people choose this option are actually very personal, for instance they strongly feel they want to do something independently and have control, while others choose this because of circumstance, for instance, they are unemployed. A third reason for choosing these retirement accounts are that they’re a very practical financial decision, and the three reasons below outline why independent retirement accounts are such a reasonable choice.

– IRAs give you a lot more control over your investments. Whereas with a 401k your employer controls a lot of your decisions, with an independent account you make all the decisions on your own. You choose a company to handle your account, you choose what type of account you want, and you choose where your funds will be invested. Some people shy away from this control, while others thrive on it.

– There are two main types of independent retirement accounts, which gives you a choice of tax options. A traditional IRA is a lot like a traditional 401k–your contributions are taken from your income before taxes are taken out. When you reach retirement age and make withdrawals you’ll then pay taxes on this income. A Roth independent retirement account takes your contributions from your income after taxes. When you make withdrawals in retirement you don’t have to pay taxes.

– When done with a 401k an IRA can be a great way to diversify. This is particularly true if you have a Roth IRA, as it diversifies your tax obligations in retirement.

As mentioned at the beginning, there are a lot of great reasons to look into independent retirement accounts to fulfill your personal needs and circumstances, and three great practical reasons for everyone to consider this an option for their retirement savings plans. For more control, for more tax options, or to diversify your taxes consider investing in an IRA.

There are thousands of so called financial advisors that tell you that you should invest in mutual funds, money market accounts, stocks, bonds and life insurance policies and diversify your retirement portfolio. This is some of the worst financial advice you can get and the general public has been duped by the large investment companies like Fidelity, Charles Schwab, and the large banks for years. These so called financial advisors that work for these big companies have very limited to no training and are not incentivized in the right ways. They make so much money off of trading fees and annual fees that you can never get ahead even if they could outpace inflation in the first place with their investments. Well you do not have to put up with this theft anymore. There are retirement vehicles and custodians out there just like the Fidelities and Charles Schwab’s that enable you to self direct your retirement into almost any investment options you want and control your own financial future instead of handing it off to one of these so called financial advisors. What is a self-directed retirement account? It’s an account just like what you would have in Fidelity or a similar company but you can invest it in pretty much whatever you want instead of being limited to what the Fidelities of the world allow you to invest in, that they make the most fees on. So you can open an IRA, 401k, Roth IRA and HSA (Health Savings Account) that you can actually make decisions with and invest with. Here are the top 10 reasons you should self direct your own retirement instead of giving it to one of these large companies that basically steal your money in fees.

(1) Self-directing your retirement account is the only way to protect your own retirement. If you do not take control of your own retirement investing and educate yourself on alternative investment options you will lose purchasing power and your retirement accounts will probably lose another 30% – 40% like we just saw with some of the major economic problems we are seeing. Massive inflation is looming so you have to invest in assets that produce a higher return.

(2) Self-directed custodians typically have fee structures that do not completely deplete your returns like the traditional IRA and retirement companies. Typically you have much smaller transaction fees, much smaller annual fees and you can find ways to cut down on fees even more as a percentage of your retirement account. You want to keep the interest and returns you make, not pay them back in fees which can significantly hinder your retirement’s growth.

(3) You can build your retirement a 1000% faster by self directing your retirement than not. If you are investing in traditional investments like mutual funds and stocks you are only going to make the long term historical average of those investments at best depending upon the economic stability of the market. The long term historical averages are close to 8% – 10%. With inflation historically at 3% – 3.5% and even higher inflation expected that is not a high enough return. By investing in alternative investment options like real estate you can make 15%+ returns on your money without even using leverage. You can even leverage real estate (get a loan for real estate) inside your own retirement account increasing your returns to 20% plus. Now that is power especially when you can do it safely with the right risk mitigation techniques in place.

(4) By self directing your own retirement account you can actually actively control your investments. When investing the traditional way you have absolutely no control and have a significant amount of risk when investing in mutual funds and stocks. You are at the mercy of what the market does. When you self direct your own retirement you can control the assets inside your account. You can structure the investments so that no matter what the market does you are making residual cash flow inside your account so you do not have to worry about market fluctuations. You also have the power to increase the value of the assets inside our account. Also, if you buy discounted real estate inside your IRA not only can you then go sell for a huge profit but you are building your retirement account tax free.

(5) Tax free investing is one of the largest benefits of investing in a self directed IRA. Can you imagine buying a rental property worth $100,000 for $75,000, renting it out for $1,000 per month, having all of the income going back to your retirement account tax free and then when you go to sell the property for $100,000 the $25,000 in profit is tax free also. No capital gains taxes and no taxation on the rental income. This can compound the growth of your retirement accounts at an amazing pace.

(6) Building an annuity inside your retirement account is crucial to your retirement plan. For example, if you need $5,000 a month to live on during retirement and are able to make a conservative 10% on your money inside your account you need $600,000 in your retirement account in order to retire and NEVER deplete your principal. If you leverage your investments and make 15% on your money inside your retirement account you only need $400,000 in your retirement accounts. So unlike what most financial planners will tell you, you don’t need $10,000,000 dollars inside your retirement account to retire. Now keep in mind if your expenses are $5,000 per month, you want to be making $7,500 per month passively so that you can continue to build your income and protect yourself from the loss of purchasing power due to inflation.

(7) Current tax planning and saving on current taxes is a huge advantage for self directed investments. If you invest in an IRA your current contribution limit is $5,000 and $16,000 for a 401k. This can bring a big tax advantage because the contribution directly decreases your taxable income dollar for dollar. If you setup a solo (k) plan or pension plan you can contribute close to $100,000 per year and reduce your taxable income by $100,000! This is unreal. You are saving $35,000 per year by doing this if you are in a 35% tax bracket. Tax rates are rising because the government and states are broke so it’s even more crucial to plan for taxes. You can then go take that $100,000, invest in passive cash flow investment property right and have the income making you 15% plus on your money. With both combined you just made $50,000 ($35,000 tax savings + $15,000 interest) on your $100,000 that year. Now if that is not going to get you to your goals I don’t know what will.

(8) Self directed investing increases your education and ability to protect yourself instead of relying on someone else for your retirement. By self directing your retirement you are now taking control of your own retirement. With that comes the need for you to educate yourself on additional investment options and the risks and rewards of those options. This education is going to be key to your future financial success and stability. The more you educate yourself the more stable you will be because as economic changes happened you will be in a better position to protect yourself and adjust your retirement portfolio according to those changes.

(9) Additional investment options are needed in order to secure your future. There are so many investments that produce additional returns. You can still invest in stocks, bonds, mutual funds like traditional companies allow you to invest in but you can also invest in real estate, promissory notes secured by real estate, tax liens, businesses, syndicated and structured investments and much, much more. Your options are limitless.

(10)Your piece of mind knowing that you have been able to structure yourself to protect against economic fluctuations is HUGE. Now you can rest easy knowing that you have educated yourself correctly, have invested in vehicles that can give you higher returns, and have the power to control your own financial destiny is the best benefit you can ask for. Most people have little to no financial knowledge and that is why most people are broke. The more you educate yourself the more successful you will be.

There are many companies out there that can help you self direct your retirement account and many companies out there that can help you structure your self-directed IRA into multiple cash flow streams. Learn from those companies and push yourself to take action on your own financial future instead of relying on so called financial advisors to do it for you, but are failing at an alarming pace.

Bali is one of the worlds’ most sought after tourist destinations. Its unique ancient Hindu culture is rich with elaborate religious ceremonies and processions that occur almost daily.

Five Great Reasons for Property Investment in Ubud:

1. Ubud is the art and dance cultural center of Bali. Located in the center of the island-state, this small village is one of Bali’s three primary tourist areas. Ubud thrives on a steady, dynamic level of tourism that stimulates a fast growing real estate business climate for both commercial and residential properties. Bali’s stable provincial government is democratically elected and encourages an open and welcoming business climate since economic growth adds greater tax revenues that permit new and ongoing development projects. The government’s ever increasing investment in infrastructure stimulates even more foreign investment and the implementation of new business standards and regulations underpin long term economic success strategies that point to sustained growth in coming decades. Even during the recent global economic crisis, Indonesia maintained approximately a 6% growth rate. This burgeoning economic giant in the region was little influenced by the downtrend, primarily because the Indonesian financial system doesn’t function as a credit-based economy. Most foreign investment in real estate is on a cash basis. Today property values maintain a steadily increasing growth curve and the investment value of property in Ubud continues to augment because of the town’s popularity amongst tourists and locals alike.

2. Ubud, a quaint little village of only 8000 people, is a magical place. In 2009 it was rated “Best City in Asia” by readers of the US-based luxury magazine Conde Nast Traveler. Ubud dethroned Bangkok as the best Asian city. Bangkok had held the top spot since the category debuted in 2004. Ubud also beat out several other key travel destinations–Hong Kong, Shanghai and even Tokyo–all major contenders for the prestigious award. Ubud’s validation by Conde Nast Traveler as being “The Friendliest Town of All” is just one of many aspects that will most likely boost property and business values in the area for years to come. On a side note for connoisseurs, Cathay Pacific’s Inflight Magazine, named the martinis at Naughty Nuri’s restaurant in Ubud as being one of the top five best in all Asia.

3. Adding to Ubud’s media frenzy buzz, the town was prominently featured in the wildly popular, global best selling book, “Eat, Pray, Love,” which remained on the New York Times Best Seller List for a staggering 187 weeks. Oprah Winfrey devoted two full episodes of her show to discuss the book’s success, which was soon followed by a Hollywood movie of the same name starring Julia Roberts, who won the 2001 Academy Award for Best Actress. Ubud’s recent accolades have intensified global investment interest in the town, which continues to show strongly augmenting revenues in the tourism sector of its economy. Property values and land rental rates for restaurants, shops, residences and hotels continue to skyrocket, which has stimulated even more interest in private real estate investment.

4. Notwithstanding the attraction of Bali’s rich ceremonial culture and its lush tropical environment, one contributing factor to the island’s dynamic rate of tourism growth is its low cost of travel expense when compared to high-key Western destinations in the States and in Europe or even in the nearby Southeast Asian cities of Singapore and Hong Kong. Indonesia’s average per capita income is approximately US$2 per day across much of the country and per capita income for workers in Bali typically is less than five dollars per day. Such low cost greatly reduces construction expense for new projects and the cost for staff once the projects are completed. This factor becomes highly attractive for not only foreign commercial real estate ventures but for private property investment as well. Retirees seeking exotic locales for retirement often place high-value-for-money-spent as a primary investment concern.

5. Living in Ubud has its rewards. Since the town is located in the center of the island at a higher elevation than the over-crowded beach areas further south, the temperature is several degrees cooler. And there’s a bit more rain in Ubud, which generally is of short duration, that nurtures the nearby verdant rice terraces–some of the most dramatic on the island. Ubud’s rich cultural heritage in art and dance has fostered a vibrant expat community of countless individuals involved in the creative arts, many as working professionals. The magic draw of Ubud has triggered the opening of numerous art galleries, fine dining establishments and five-star hotel accommodations. Many foreign investors seek property investment opportunities in Ubud to capitalize on Bali’s lucrative tourist industry by tapping into the luxury holiday rental villa sector.

Ubud’s vibrant residential real estate market has spawned some of Bali’s most innovative architectural designs, many that incorporate structures rising from infinity-edged reflecting pools. The concept blends unique contemporary design with the traditional Balinese “alang alang” thatched roof. The climate is temperate all year long so glass-enclosed, open-air rooms can invite nature inside in an often striking juxtaposition of elements.

Today’s Ubud seems to have captured the most exotic aspects of Bali’s rich cultural heritage while it keeps abreast with the future. It surely has captivated the world’s attention.

In these days of stocks, mutual funds and FOREX trading, people seem to have put coins and coin prices on the back burner. What is more, in today’s world of currencies, credit cards and online shopping, coins simply do not seem to be on anyone’s mind.

Are we ignoring the importance of owning coins that used to be the time tested medium for conducting trade and creating wealth? It is high time we start focusing on the value of owning coins for more reasons than one. To start with, here are some compelling reasons why owning coins make sense.

A Sound Hedge Against The Dollar

If you track the movement of the USD, you will note that it has had a volatile movement during the past 5 years. The reasons are not far to seek. The rising US government deficits, the cost of prolonged war in the Gulf and the on-going war in Afghanistan, in addition to the huge trade deficit.

There are genuine concerns on how the world’s oil reserves will pan out and speculation is rife that unstable crude prices will rule in the near term. In addition, neither stocks nor currencies are having a stable run. In sharp contrast, look at the movement of gold prices. From around USD 300 per ounce during early 2000, the price today has steadily increased to nearly USD 1,250, a whopping increase of more than 400 per cent.

Safe Haven During Times Of Uncertainty

The global economic slowdown still seems to be an endless tunnel. The latest figures on unemployment are not providing cheer either. The recessionary trend continues to haunt investors. Under these circumstances, it is safe to assume that precious metals will continue to be a sound investment.

Prospects Of Handsome Appreciation

No doubt, speculating on the prices of anything be it, stocks, currency or gold, is a hazardous venture. Yet, considering the past trends, an investor can safely take a cue as to what the future movements will be. Gold or for that matter, any of the precious metals are, in all probability, on the way up. Anyone who has been an avid watcher of coin prices will never say that investment in coins has been a cause of regret.

How To Buy Coins

Fortunately, there are convenient ways for you to purchase either gold coins or coins of other precious metals like silver, platinum or palladium. Apart from market reports, you have coin price guides to assist you in buying coins.

As a typical case, when you make a purchase and payment is made to a bank or depository, the custodian will inform receipt of metal by sending you a Commodity Transfer Notice. Thereafter, the US Postal Service makes the personal delivery by Registered and Insured mail.

Selling is easy too. However, getting to know the actual coin prices can be a tricky task. Even though the net provides you with free coin prices, a coin prices guide can be just an approximation. Coin prices can vary when you actually get a quotation from a seller.

Below I list five facts about the stock market, all very bullish cases for stock prices to rise in the immediate term.

According to Bloomberg’s survey of 9,000 stock analysts, the S&P 500 companies will earn 18% more in 2011 than they did in 2010. Despite this, the S&P is trading at 14.5 times last year’s earnings. Since 1991, the S&P has traded at an average of 20.5 times earnings.

Interest rates in the U.S. are not rising for the near future, as the unemployment rate remains high, the Fed is not pushing the inflation panic button yet, and the Fed is committed to a policy of monetary stimulus.

Stock prices have fallen 6.2% since May 2, 2011-and investors are in panic mode. While most investors have very short-term memories, I remember last year, in particular the period from April 2010 to the end of June 2010, when stock prices fell 16% and investors were panicking as well. Stocks subsequently rose 34% from the end of June 2010 to May 2011.

Investors pulled $5.46 billion out of stock mutual funds last week, according to the Investment Company Institute in Washington-the biggest withdrawal of money from stock mutual funds since the week ended December 8, 2010. From December 8, 2010 to May 2, 2011, stocks rose 12%.

The percentage of bullish stock advisors in the marketplace has fallen to a low not seen since September 2010 (Source: Investors Intelligence). The Dow Jones Industrial Average rose 22.6% from the beginning of September 2010 to May 2, 2011.

Michael’s Personal Notes:

Excellent story in this weekend’s New York Times on the backlog of residential home foreclosure cases across the country. The article refers to data from LPS Applied Analytics, which reports it would take “lenders 62 years at their current pace to repossess the 213,000 houses now in severe default or foreclosure” in New York State (New York Times, 6/19/11).

The article goes on to claim that millions in the U.S. are staying in their homes without making payments on their mortgages, as the foreclosure process grinds to a halt.

You may remember last fall’s controversy over banks foreclosing on homes without all the paperwork in order. This slowed the foreclosure process dramatically. Add to this a large number of homes still to be foreclosed on and the system is overwhelmed.

Do the banks really want more foreclosed homes on their books? I doubt it. It takes money to foreclose on a home and more money to sell it (real estate commissions, etc.). If I were a bank with tens of thousands of homes on my books, wouldn’t I want the people living in the homes to pay the utilities as opposed to my bank?

I’ve said this before: I have never seen the U.S. economy recover when the housing market hasn’t recovered with it. It will take another decade for any normality to return to the U.S. housing market. Hence, you can see why I’m so wary of the economic recovery and so concerned about a double-dip recession.

Where the Stands; Where it’s Headed:

My opinion remains unchanged: stocks are oversold. The bear market rally in stocks that started in March of 2009, although getting near its end, is still alive and well.

What He Said:

“I’m getting very worried about the state of the U.S. housing market and its ramifications on the economy. The U.S. could be headed for its first outright annual decline in home prices on record, adjusted for inflation. And I really believe this could be a catastrophe for the U.S. economy.” Michael Lombardi in PROFIT CONFIDENTIAL, August 2, 2006. Michael began talking about and predicting the financial catastrophe we started experiencing in 2008, long before anyone else.

Retire on This One Hot Stock!

This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173.57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today.

Get your FREE report on our top stock pick immediately here.

http://www.profitconfidential.com/pcabs/

(1) CONTROL – Many money managers will advise you to diversify your investments in paper assets such as mutual funds and cd’s. Yet as investors search for investments with lower risk, they increase the level of risk for themselves by investing mainly in mutual funds. The problem being you have no real control over the assets value since you cannot renovate or improve its value like you would real estate. You cannot control the risk of the asset like you could with real estate by using creative legal structuring, having proper insurance, or protecting yourself against economic cycles through positive cash flow. Due to the lack of control of the asset, mutual funds are some of the worst investments available. On the other hand, real estate can be controlled much easier by investing correctly in assets that are under market value with multiple exit strategies that help increase the return on the investment while decreasing the risk. An increase return on an investment does NOT have to mean an increase in risk.

(2) INFLATION – Paper assets do not have inflation protection. With all of the “funny money” the U.S. government has printed in the past couple of years our economy is in shambles. Just look at the price we pay for commodities and gasoline, inflation is already happening. People’s paper assets primarily stay the same while everything else goes up in value, so most investors are losing money and being left behind by not investing in assets that keep up with inflation. Real estate value generaly goes up even though the demand for it stays the same thus keeping up with inflation, regardless of how much the dollar weakens. By investing in real estate you diversify into another asset class instead of the U.S. dollar which since 1971 is considered one of the worst investments of our time.

(3) DEPRECIATION – Paper asset income does not come with tax benefits like real estate even though taxes are one of our biggest expenses in life. Learning ways to reduce taxes is extremely important, especially in our current economic time. Reducing the taxes you pay to financial predators such as the U.S. government will help you get ahead financially. It’s their job to find additional ways to tax you and it’s your job to find ways to reduce or even eliminate those taxes. When investing in real estate you get depreciation benefits which topically equal 60%-80% of your purchasing price divided by 27.5 years. For example, if you purchase a property for $100,000, then $80,000 (depending on the land value) is written off over 27.5 years, which means you get a $2,909 tax deduction on any income that property produces. So if you make $8,000 per year in rental income you are only paying taxes on approximately $5,000 instead of the original $8,000, which is huge when compared to other investments.

(4) LEVERAGE – Rarely can you use leverage with paper assets to borrow money against them and increase your return on investment. When using leverage, assuming it done correctly, you can increase your returns. With paper assets using leverage is extremely risky since there is no control. That’s why financial planner and advisors will tell you leverage is risky. However, it’s only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service. If you purchase the same $100,000 property (in point 3 above) but get an $80,000 loan at 5.5% for 30 years and put 20% down you now have a monthly payment of $454 per month leaving you with $213 per month in positive passive cash flow ($8,000 / 12 months = $667 – $454 payment = $213). That means on your $20,000 you are making $2,556 per year or a 12.7% return on investment instead of an 8% return on investment on your $100,000. Using leverage correctly is a great way to increase returns which is extremely necessary in an inflationary economy.

(5) CASH FLOW – Most paper assets do not produce positive monthly cash flow. Cash flow is everything. When you invest in most paper assets you typically invest for capital gains, not cash flow. Capital gain investment income has higher taxes and do not provide you income when the economy is doing poorly. You can easily lose your investment or a large percentage of it, like we saw when most American’s retirement and 401k accounts lost 40%. If you invest in cash flow, the value of the property does not matter. You are seeing your return on investment on the cash flow and no matter what is happening in the economy you are not in danger of losing the asset or your initial investment. You will typically see your cash flow come rain or shine even with fluctuations in the general overall economy. However, you are much less susceptible to economic fluctuations if you are prepared. By building your cash flow stream over multiple asset classes you will be in a much better financial position where your monthly expenses will be covered by the cash flow. As your expenses rise with inflation so does your cash flow due to rental inflation as well.

Romania – famous for its beautiful palaces and castles, wonderful liquors and food, Dracula, dazzling women is a beautiful country located in central-eastern Europe. It is the 12th largest country in the Europe. The economy of Romania has shown potential growth in the past few years. Since 2000, Romania has shown a rhythmic growth of 4.5% raised by 8.3% in 2004.

The current economy statement in Romania is steadily increasing the levels of GDP and significantly high levels of Foreign Direct Investment (FDI). The economy investment grade has recently been upgraded by Fitch and P&S. Romania benefits from the rising FDI flows due to the privatization process, and the advantages of its big internal market

Romania is also having a great geographical location at the intersection of some great trade routes joining the Far East with the Western Europe. With population of more than 20 million people, Romania has a large domestic market. After having such great property investment opportunities, Romania is continuously attracting more and more foreign investors to invest in Romania. Stable and encouraging government of Romania is the other reason which is creating great investment opportunities in Romania. The Real estate market in Romania is growing at a rocket speed. Following are some best reasons for investing in Romania.

Reasons to Invest in Romanian Real Estate Property:

1. With strategic and visionary efforts by Romanian government, the economy is becoming stronger and stronger over the years. Romania is one of the fastest growing economies in Europe.

2. Falling inflation and increasing employment are two other boosters of rapidly growing economy. Inflation has dropped to 7.5% low in 2005 from 22% high in 2002. Unemployment rate also fell to 6.2% in 2006 with less than 3% in capital Bucharest which is far lower than the many other developed European economies. With under control inflation and falling unemployment rate Romania is confidently creating the strong property buying opportunities over the country.

3. Foreign investment in Romania is increasing drastically. From 2001 to 2005, foreign direct investment in Romania has reached over 5000 million euros and more 8000 million euros added in 2006. With 55% of FDI in capital city Bucharest, major companies from all over the world are coming to invest in Romania.

4. Along with capital city of Bucharest, other cities in Romania like Brasov, Transylvania, Craiova, Constanta and Iasi are also attracting investors. Transylvania is the Romania’s biggest tourist asset and the expected to attract more investment with immense number of investment opportunities. One more golden opportunity where investors want to invest is in Brasov, the most visited city of Romania. Having facility of international airport, Brasov is also linked with new motorway for fast transportation.

5. Report given by investment experts says that house prices in Romania are expected to increase by 4 times higher over the next 10 years. In past few years, property prices are already raised by 25%. Even such a great rise, property price in Romania are still 20-30% lower than the other eastern European countries.

6. After accession to the EU in 2007, the real estate market in Romania has been influenced dramatically. EU funding to Romania has been invested into the infrastructure development in road, hospitals, schools, bridges etc. EU funds will help to create more jobs and therefore potential customers seeking to buy/rent properties.

7. Low tax rates are the other main reason to invest in Romania. Romanian government has set up a flat rate of only 16% for corporation and income tax. Such low and fixed rate of tax is powering Romania to draw more foreign investors seeking for new business places.

Some other secondary factors are also responsible for great investment opportunities in Romania. Romania has great network of international airports with two in capital Bucharest. Developed and fully facilitate ports in Romania is also boosting its economy drastically. Romania has huge network of telecommunication systems equipped with modern telecommunication equipments. Also there are nearly 48 industrial parks.

As far as it looks, the boom is yet to come! Buying property in Romania will be great ROI in near future. So what are you waiting for? Invest now in Romania for your better future.