Potential Additional Costs in Buying Bank Foreclosed Homes

Bank foreclosed homes are often offered at almost half their original market value. The longer they have been in the market, the more chances a buyer will have of negotiating for a low purchase price. However, these homes also often come with repair needs that can reach up to tens of thousands of dollars.

Impact of Home Condition on Price

Buyers should not expect banks and bank agents to tell them the extent of repairs required by the house, so it is their responsibility to find out how far the dwelling has deteriorated and to identify the areas that need adjustments. The more they know about the extent of repairs needed, the better they will be able to negotiate for an appropriate price.

People who have skills in home repairs would have an advantage since they can work on fixes themselves and would not need to hire someone else to do the work. That would be additional savings for them.

What Could Bring Costs Up

There are certain areas of bank foreclosed homes that would cost more to repair than other aspects. One of the most expensive repair jobs is home foundation. If the foundation of a dwelling has deteriorated to a point that it needs to be totally replaced, then buyers should not bother. This means that practically the whole house would have to be torn down to shore up the foundations. No matter how cheap the purchase price is, the cost of replacing foundations would not be worth the money and the trouble.

Plumbing, electrical and sewer systems that need to be replaced can also eat into the budget. If these systems require total overhaul, buyers should look somewhere else. HVAC and central airing systems are also expensive projects that might cost as much as half of the total purchase of the house. Roofs that need to be totally stripped will also entail costs that can reach up to tens of thousands.

When viewing bank foreclosed homes, a buyer should have a professional house inspector at hand. They might think that they are getting a bargain, but there are things, particularly inside the house, that might require excessive expenses that buyers can hardly afford.

How To Trade Currency Full Time From Computer

Studying how to trade currency can be your chance to attain financial freedom. Personally, i have quit my day job a few years ago because i am going into full time trading. Nonetheless, not everyone that is participating in forex trading are able to become a full time trader. You had to be able to trade the currency properly in order to accomplish that. Here are some tips that I want to share with you if you plan to become a full time trader one day.

Professional forex traders never stay to trading just one currency pair. Everyday there are a lot of chance on all currency pairs, hence you must be able to analysed and trade all currency pairs so that you can easily profit from any currency pairs that is trending. The key here is trend; there are times when a currency pair is moving sideway while others are trending. So you got to watch for a trending pair and then ride the trend to profit.

There is times where the price will bring about great spike which will sometime stop out your position. This is normally due to forex traders trading the news. If you are interested in learning how to trade currency using the fundamental, you should be conscious of the release dates of some critical economics data. Not all economic data will impact the forex market, hence you need to do some research or read up on what reports are more considerable and which is not. Even So if you find it hard to understand or interpret those data, you can just trade using forex technical analysis and then try to leave all your position before any economic data published. This can definitely spare you from becoming the victims of fundamental news.

Select wisely. Stay close to the best Forex currency trading software to maintain you on the go. It genuinely counts to read and study the credibility and truthfulness of the Forex software reviews available online so that you do not overlook the right thing. Also, it will help you discover ways on how to trade forex currency without the need to fail the first time. Do not trust your future on any software who says otherwise.

Kelvin is a Forex enthusiast and a full time Forex trader. His blog at offers simple yet powerful Forex tips and strategies to help other traders to make their 20 pips a day. Kelvin’s Forex newsletter is jammed packed with Forex tips and techniques for other Forex enthusiast. Subscribe for Free Forex Strategies newsletter now.

Msc Accounting And Finance At The University Of Southampton

If you are thinking about applying to enrol on the MSc Accounting and Finance masters degree at the Management School at the University of Southampton, then here is a quick overview of the course.

The Accounting and Finance MSc course is designed to meet the needs of students who have some knowledge of accounting and finance and who wish to extend their knowledge to an advanced level.

Students who have studied very little accounting or finance and have little relevant work experience are likely to find the programme very challenging indeed.

This MSc Accounting and Finance masters degree course consists of a core covering the main areas of accounting and corporate finance, and a research methods course that supports the dissertation.

Options available on this programme of study allow students to study particular aspects of accounting or taxation in more depth.

For example, there is a pathway within the programme that allows students to concentrate on research-oriented training and more advanced aspects of accounting and finance.

Your understanding of the subjects covered and your ability to use the knowledge and skills gained will be enhanced through a variety of methods and strategies on the MSc Accounting and Finance masters degree.

If you wish to apply to study this MSc in Accounting and Finance you should complete a University of Southampton application form and return it to the Academic Registrar.

Your application to study MSc Accounting and Finance will be carefully considered by a specialist member of the academic staff who will weigh up many factors; not only your academic achievements, interests and aptitudes, but also your motivation and your referee’s confidential report.

At the Management School we make our decisions in most cases on the application form and supporting documents alone. However, candidates who require special consideration, e.g. on grounds of age, disability or non-standard entry qualifications may be interviewed.

Partial Payment To Stop Foreclosure – Will The Bank Take It

Once a homeowner is behind on their mortgage payment, they can expect a lot of harassing calls from their bank. Unfortunately, that isnt the worst of it.

The difficult part for the homeowner is that once you get more than 30 days late the bank requires full payment of all monies in arrears. So lets say a person hasnt made a payment for a couple of months and you manage to scrape together the 2 months mortgage payments of $4,000 and you call your bank to let them know the good news. But what you hear is the bank saying “Hey you know that $2,000 monthly mortgage and you know how you owe us 2 months worth of payments, right? Well you actually owe us $4,500 because youre two payments late and were not going to accept anything less than full payment on all monies that are past due. Oh, and by the way there are some penalties and fees and things were going to add onto that, so thats why you need to send us $4,500 to get back in our good graces. If you dont send us this amount, were going to go forward with foreclosure proceedings and take your home from you.”

And rightly so, that freaks people out. Most families typically cant come up with two or three or four times their monthly payment in one lump sum. If they try to send monies in that are anything less than that full lump sum amount, the bank will usually, quite literally, send the person the check back. If the person says, “Hey all I can do is come up with one month payment. Ill send you the $2,000 plus fees, so Im going to send you $2,400.” and they send in the check and the bank is more than likely not going to cash it and they will send it back to the homeowner.

With the banks refusing to take partial payments the bank will then often proceed into the next stage of the foreclosure process. Typically after 3 or 4 months that have gone by without a payment, the bank at that point is going to legally file against the homeowner and submit a legal document to the homeowners county recorders office. The document is what is called a Notice of Default (NOD). This takes the homeowner one big step closer to losing their home.

Why Online Business Entrepreneurs Needs to Choose Reliable Web Host

These days you will find many reliable web hosting providers. Even a person can sell practically anything on the web. The actual reason behind this is, technology has developed significantly in recent years and provides the best services. And the continuous innovation in web hosting technology open the door for many opportunities in online business.

However, today’s entrepreneurs mostly demands inbuilt system integration, secure technology infrastructure, automation, etc. So today’s new generation entrepreneur view has more focused on technology and support services and it is ideal for rapidly increasing economies.

Today delivering enterprise level IT solutions to entrepreneurs of all sizes in proper time is a major task for all the hosting companies. Therefore web hosting companies must be committed to make the whole website hosting experience as simple as possible, including server set-up. Also they to need provide user friendly billing cycle process as simple as the purchase process.

Choosing the right web hosting company is important because it can make or break your business. If you choose reliable Web Hosting company, you will surely enjoy many advantages. In addition, these days the cost of bandwidth is inexpensive as well. This will give you lead in business to stay longer period. Another thing is a hard disk capacity. It is always good to have some more, therefore make sure you purchase sufficient amount of web space for the Website.

If you choose a wrong web hosting provider and his technical support is terrible, problems can occur, especially if you have the videos or pictures, because it will take more time to load them up so it can be possible that you will lose your potential customers and visitors. Loss of profits is unavoidable if the server is down for long time since customers will certainly look for another online store.

However, each web hosting provider is different from one another; even the pricing, and services are vary from one another. Therefore, do some research before making any decision; try to evaluate each and every option as possible. The success of a company site is dependent on the reliability of the web hosting company, so this should be taken into account.

Manifest Money By Falling In Love 5 Simple Ways To Love Money

Manifesting money is easy once you’ve fallen in love with it.

Most people do not love their finances, because it’s in a negative state. Fall in love with money. Be clear about the amount of moolah you want to manifest. State it and mean it! It should not be how much you can earn, but how much you want to receive.

Money is magnetic energy. You are a magnet that attracts all things via the signal you emit through your thoughts and feelings. To become a powerful magnet of prosperity, fall in love with money and believe that you have what it takes to attract it.

Why People Hate Money

1. They don’t have enough of it
2. It’s hard to find and make
3. It’s associated as the source of all evil
4. The belief that they can’t be rich
5. The belief that it’s the only source of happiness

Most people are attracted to things they love; the same is true with loot. If you want to manifest riches, the first step is to fall in love with it.

You may be thinking “Isn’t it true most people have very little or no funds at all?” If this is your BS (Belief System) this is the reason, why you haven’t fallen in love with money. You believe it’s not easily available to you.

There are people who mistreat, behave and talk bad about those who have large sums of dough in their possession. In doing so, the Law of Attraction is reversed and works against them causing them to lose out.

There is another group of people who associate this currency with evil. They believe wealth is the source of all evil and thus end up hating it. While there are others who even go to the extent of killing for cash.

How to Fall In Love with Money

1. Be clear about the amount you want to manifest
2. Believe that you have what it takes to attract it
3. Know it’s needed to live a fulfilling life
4. Understand that it’s a good thing
5. Remember there’s an unlimited amount available to you

There are those who say that money is not everything nor is it the only source of happiness. However, it is not possible to accomplish or own anything without currency.

Money is used to accomplish a lot of things both good and bad; therefore it is upon you to decide what you intent to do with it once you have it.

Most people limit themselves as far as how much capital they would like to have. It should not always be about how much you can make but rather how much you want. And there is no limit to what you can achieve as long as you know how to manifest money.

Home Business Online Start earning money

If you want to make extra money online in your leisure time, want to earn with learn, or you have retired from your job or unemployed, the Internet is the places to look for home based business opportunities due to its worldwide presence. There are countless home based business opportunities available. From home online business opportunities you just not only earn money but will also enjoy doing it. The other best part is that it is not necessary that you require a big amount of capital for this. Its very easy today to start a home business on the internet. Home based business opportunities can be found almost everywhere. It is also true that to start a home based business definitely takes some time and money to get on track. Therefore, prior to starting up your home online business, start doing research into online business. And determine the area or field you want to look for your new internet home based business and the next step would be to actually research the different opportunities available to you as a home worker. There are opportunities with a free website, internet marketing training, and a good support network like a forum and helpdesk. You can also get free websites easily around internet. These sites recommend you the capability to set up your website content and even consist of exceptional things like trackers and ads. Once you start doing home business online, you will be able to access an entire new world of customers. Because there are many methods, both free and paid, to advertise your website, try some free methods first like article marketing, forum postings and blogging to get some traffic to your website. You could also explore some paid methods, like pay per click (PPC) with for example Google Ad-words, but make sure that you should invest first in knowledge, buying software to be able to track the ads, analyze the results and select the best profitable keyword list. Also remember, to start home business online, you need some skills to achieve results. But once you will learn the basic techniques that will help you further in your internet home business venture. Apart from that, it will not be wise decision if you spend money in the beginning on many marketing methods at the same time without doing them in an optimal way.

So, choose the right internet home based business and start with the field that you already know something about.

Tour Atlantas Federal Reserve Bank Monetary Museum

The Federal Reserve Bank in midtown Atlanta welcomes visitors who would like to tour its Monetary Museum and Visitor Center exhibits. Anyone who has ever wondered just what goes on in a Federal Reserve Bank will find the museum interesting and informative. The self guided tour chronicles the story of money from various forms of barter to modern day e-commerce. The museum also relates the history of banking in the U.S.

The Monetary Museum has interesting examples of what people through the centuries have used as barter, from wampum to Chinese shoe money to gold nuggets. There is an outstanding collection of historical monetary artifacts, including rare coins and currency from around the world as well as some Confederate money. Displays also include an actual gold bar worth $500,000 and a real $100,000 bill.

The Visitor Center has interactive touch screen exhibits which show the role of the Federal Reserve Bank in America. Multimedia exhibits and films explain how the Federal Reserve maintains the stability of the countrys financial system and the economy, and how the Federal Reserve regulates banks. The interactive Bankers Challenge game demonstrates how banks earn profits and manage risk. Through windows in the Federal Reserves cash processing center, visitors will be able to watch the process as robots and Federal Reserve personnel handle large amounts of cash. Millions of dollars are counted and sorted every day. Visitors will see how worn out currency is shredded, and watch as the cash bus goes back and forth all day. Even children will enjoy some of the interactive exhibits and the cash bus. Upon leaving the Visitor Center, guests are invited to take home an unusual free souvenir, a bag of shredded money.

The Atlanta Federal Reserve Bank is located at 1000 Peachtree Street NE. It is a hidden gem in midtown, just a five minute walk from the Midtown MARTA Station and across the street from the Margaret Mitchell House. One of the best things about the Federal Reserve Bank Museum is that admission is free. Visitors to the Federal Reserve Bank must pass through security before entering the building, and at least one adult in the party should have a photo ID. No cameras or bags are allowed, but free lockers are available. The Federal Reserve Bank is open Monday through Friday from 9am-4pm. The facility is not usually crowded, and the museum makes a great stop for people visiting downtown and midtown Atlantas other attractions.

Thoughts on Painless Commercial Real Estate Investment Advice

Real estate investment is the practice of buying real estate property and making a profit out of it by selling it. There are many people that make a living utilizing this type of investment as it can be rather lucrative. Nonetheless, not everyone advantages from it. There are people who make the wrong choices when purchasing property and wind up making drops.

Wondering how to get a great start in the sales of commercial real estate? As of today commercial real estate market is considered as one of the vast market regardless of where you are. You could easily find a booming career in the real estate industry if you are aware of on the right techniques of the market. You can always take good real estate investment advice for getting a great initiate in a fruitful venture.

Commercial real estate investment can be considered as very good career choice. There is always a market for business when you consider commercial real estate investment. Always remember when you get involved with commercial real estate investment, keep the deal in your mind. You always have to be alert when deciding any type of deal. Dont only go for just a good location or good appearance, but there should be lot more things you have to keep in mind like the bottom line earning you expect to make, the following terms and conditions of the agreement and moreover the approximate rate of return from it. Simply focus on the expected profit and good real estate investment advice rather than getting emotional on one property.

Always keep in mind that the whole real estate process is a long process even if you have already gone for a commercial real estate property. Now a days people or owners get so impatient with all the processes and simply give up on the deals. Basically you need to have the track for all the things like all the official documents has to be made properly, the documents need to be signed properly and moreover repairs need to be made.

Well you have to think before doing anything like for example why the previous owner is selling its commercial property and more questions like this. Sometimes, they are selling it because of a problem with the property itself. It can be any scenario like it could be prone to more bizarre scenario be the target of repeat break ins due to a vendetta or perhaps due to insect infestation and lot more things like this.

There are always new things happening in the commercial real estate as there are always new questions coming up that you cant even answer. So that is why it is said to take real estate investment advice from some experienced person that probably helps your success rate. This makes a wealth of resources available to you.

For more information related to real estate investment advice , Please visit : americanrealestateinvestments.com

Business Entrepreneur and the Web Hosting World

Web hosting providers are able to offer business entrepreneur a number of different things when it comes to their Website hosting. Sometimes, Website needs better hosting types for its videos, since a faster connection will allow faster downloads and more consistent flowing. When it comes to web host for streaming videos from Internet servers, there are several important things that user will need to keep in mind. First, an entrepreneur will want to choose a web hosting service provider that is reliable. This is important because no matter how fast the connection is, if it keeps cutting out an entrepreneur will not be able to upload or download what they want to accomplish.

It is also important that the entrepreneur knows disk space and bandwidth limitation when it comes to their Website hosting. Actually there is a limitation on the amount that can be downloaded. When it comes to a web host flowing video from Internet servers, it is very important that if the user notices anything slow of unnerving about the process that they talk to their web host if there is any type of problem.

If an entrepreneur is curious about what type of hosting is suitable for video Website, there are certain options available, and their advantages are almost limitless. For some people, that change shape will be the fact that there are news videos available. For others, it will be the highlights from sports games and races or fights. And still others will be curious about the ever expanding world of online gaming business on the Internet. Even many business entrepreneur building entertainment videos Website for more profit.

This can change from place to place and while controls can be put on the system in order to block certain sites, it will also be important that there are discussions that take place in order to determine what, if anything, will be blocked, this way if anyone ever cannot access something they know why.

Searching for reliable web host on the Internet is not very difficult. All an entrepreneur needs to do is access the search engine of any web browser. From here it is very easy to type in what they want to look for. This will be important if the user want to get reliable web host for the Website. The entrepreneurs do not need to think they will be overcharged by their web host, because this will not happen. If the bandwidth and disk space or other resources used in a right way entrepreneurs do need to pay any extra charges for its specific use, but if they are not then the entrepreneurs need to be aware of what they are getting into.

Stock Investment Company – The ins and outs

These days, it is not at all rare for one to come across such a stock investment company that offers services with big promises. Stock investment is a serious proposition and stock market positions are very difficult to understand. It is good to do some in-depth research before you choose a stockbroker or stock investment company.

There are many stock trading companies but the choice has to be made based on research. It is important to know and consider the qualifications of the company. The company has to be competent and to ensure this the credentials of the company have to be looked into. The customer should try to get as much information as is possible about the company. There are other issues such as the fees and commissions, which the stock investment company will charge for the stock market trading. If the fees and commissions are excessive, they will take up a major part of your stock trading profits. Your investment goals will be affected. Your decisions in transactions will also be affected. The fees and commissions that the company will charge, therefore, is an important consideration.

There are three principal types of stock investment companies. Some companies just carry out your stock trades. This means that you will instruct and you will buy and sell stocks. The companies will do just this and little else. The next type of companies will carry out your trading instructions and, along with that, provide you with helpful tips and stock market quotes. A type of stock investment company also serves as your investment planner. These companies will see your resources and investment objectives and do the management of the resource on your behalf. It is up to you to decide which type of stock investment company will be the best suited for your purpose.

You may also come across such a stock investment company that does not work with the stock market. The customer has to ensure that the stock investment company operates in the market where the customer intends to invest. If this is not the case, there is a waste of money and time. The advisory services of the stock investment company to help you out should be there. When you choose your stock investment company, you should notice whether it has the right investment advisory services. In stock market investing, no two persons are the same. The capacities of investing in stock markets vary from person to person. The best services are offered by the personalized services of the stock investment company.

Tips to Help You Become An Entrepreneur

Everyone dreams. But only the truly exceptional possess the dedication and creativity to turns those dreams into a reality. Such truly exceptional people are known as entrepreneurs. These people introduce a radical new idea into the pool of over-used and copy pasted notions. Entrepreneurs are the architects of the constantly changing and improving society.

What makes an entrepreneur?

This is a question everyone has thought of when watching the success of well known entrepreneurs like DhirubaiAmbani, Bill gates, Narayan murthy etc. Passion, creativity, imagination, innovation and an unrelenting drive to succeed are the qualities that set an entrepreneur aside from the rest of the crowd. Out of the box thinking and a sense of showmanship goes a long way in todays competitive market.

Budding entrepreneurs must possess the tenacity to succeed no matter what the harsh world might throw at them. A strong sense of self respect, confidence and good principles cultivated from an early age is a very important factor that influences the thought process of any entrepreneur. The tendency to conform to societys norms is automatic. Any person wishing to climb the ladder of success as an entrepreneur has to break free of this tendency and have the ability to look at things from different perspective. One of the most important aspects of an entrepreneurs success is the idea. This little four letter word is the cornerstone and the motivation for any venture. In order for any venture to reach its full potential, you must believe in the idea 100%. Any job half done is a waste of both time and effort. Plan well and assemble a trusted team to help you. More minds thinking on the same idea helps hone it to a perfect shape.

Risk Taking is Important Too

But one cannot ignore the very high risk factor. The chances of failure are ever present. Think with a practical mind. Take into consideration all the factors of your life that may be affected by what you choose to pursue and whether you can afford the risk. Your wallet is most likely the spot most affected. Be sure to think before you invest.

Any entrepreneur who is revered in his field can tell you: There is no formula for success. Success is three parts hard work and one part chance. A life as an entrepreneur is alluring and exciting. A true entrepreneur has the all-consuming desire to see their dreams turn to reality and is bold enough to push the limits of human potential could bring about unprecedented changes in the society. That person could be you!

Top Philippine Banks For Ofw

A bank account is very important for OFW since it will be the account where the money will be sent from abroad. Opening a new bank account can be hard since you do not know which bank is the best for your criteria. There are really many banks in the Philippines so selecting one is not easy. In this article, you can learn which bank to use to send money to the Philippines.

1. Banco de Oro

Last year, Banco de Oro or commonly known as BDO held the highest portion of OFW remittances so it was named by Central Bank o f the Philippines as the No.1 bank of OFW remittance. BDO has services that it exclusively offer to OFW and their relatives like the Kabayan savings account with only P50 initial deposit with no maintaining balance as long it will be used for remittance. Just like other banks, BDO has Internet banking, phone, mobile and ATM banking across the country.

2. BPI

Recently, Finance Asia awarded Bank of the Philippine Islands as the best bank in the country for cash management in 2009. BPI is my choice bank for sending money to the Philippines. It has the best care fo its customer and very quick in responding to their client’s needs.

3. Metrobank

Metrobank is a famousr bank in the Philippines and listed as a public company in the Philippine Stock Exchange. Last year, it belongs to the top five remittance bank of OFW. It has a wide network of branches not only in the Philippines but also in other countries like US, European countries, Korea and Middle East countries. Many OFW likes Metrobank because of its good customer service and plenty of branches all over the country.

4. Chinabank

ChinaBank ranks fourth as the largest universal bank in the Philippines by market capitalization. It is a member of BancNet, a famous bank organization in the Phlippines. Chinabank has many services through its 388 ATM and 248 branches across the country. One good benefit of using Chinabank is you can transfer money to other bank members of BancNet with just small transfer charge.

5. Union Bank of the Philippines

In the Philippines, Union Bank ranks seventh in the largest banks in terms of assets. It is a public bank listed in Philippine Stock Exchange. Union Bank is a partnership among the companies and government institution in the country. With its wide range of services, many people and OFW find Union Bank a good choice for banking and remittance purposes. You can send money to the Philippines using Union Bank by PayPal, through remittance partners and by bank to bank wire transfer.

Choosing a bank for remittance purposes depends on your needs. Almost all banks offer same services but you need to determine those which are customer-oriented and responds to client’s problems quickly.

Take The 100 Day Challenge For Entrepreneur Success

By making a clear visualization of what you want achieve, you start to make the whole progression of building a successful online business easier. If you focus on the next 100 days, and do the 100 day challenge, those 100 days could be important to your future, by the actions you take today and each day over the next 100 days. Bold positive action creates bold results, take the challenge and build your entrepreneur success.

Here are 6 key steps for you to take today to get yourself going in the right direction and then begin your 100 day challenge.

1. Select your online business system. Are you building from the start or maybe you want an online business presence for your existing business or MLM company? There are a few high-quality systems out there, but some are better for some types of business more than others.

2. Decide on your main product. There are several options you can take with your main selling program, even if you have a business you may want to incorporate something else along side with it. Once you are set up and ready to market your main primary program it will make the difference to your online success and can significantly increase your income.

3. Create traffic flow. The most essential ingredient of online business is making traffic flow to your site. No visitors equals no business. There are several ways that you can do this and from within your system you need to choose the best way for you. Ask the team that you join as to what they advocate for you based on your position and the time you have available.

4. Set your targets. Goal setting is essential, set your goals and targets and set them on a daily action plan basis. Having monthly aims and no means of daily monitoring them will hinder your progress.

5. Work on you. As you build your business work on your mindset as well. Individual development is one of the key entrepreneur success factors.

6. Action. Getting a system, main programs, and goals will represent nothing unless you take action on your set plan. The 100 day challenge is all about taking action every day over the next 100 days. In that way you will not only build your business, but you will also set a new practice, a habit of taking consistent daily action for your online business. It is one of the entrepreneur success factors that make the difference, so take the challenge to yourself, take the 100 day challenge.

Property Investment Vs Property Speculation

Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.