Nashua Ranks in Best Places to Live
Nashua New Hampshire makes the cut in
CNN Money Magazine's Top 100 Places to Live, ranking number 87 for 2006. This is the only city/town in New Hampshire that made the list. Last year (2005),
Merrimack was on the list at #49 and Hudson at #85. However, neither of these towns were contenders this year.
The rankings are based on a variety of
scoring parameters including financial data, quality of life, leisure and activity, health, education, safety, etc. They even consider factors like how much money households spend on vacation every year and average body mass index for residents.
The results also showed
Fortune's Best Companies To Work For. This year, Timberland was the only New Hampshire company to maket the list at #49.
posted by B. Samii @ 1:22 AM
Three Factors in Real Estate Investments
Here is a quick and dirty of some important things you should consider if you're looking to
invest in a piece of real estate. Although, there are many considerations and a lot of elements outside your control (the market!), there are three important components of return to consider if you want to make an investment:
1.
Cash flow -- how much money can the property generate on an annual basis, look at all revenues minus all expenses in a given year
2.
Taxes -- what are the tax implications of such an investment
3.
Future Sale or refinance -- what are the possibilities to increase the capital position of the investment when you decide to sell or refinance.
Cash flow, first and foremost, is very important and often times dictates the valuation of the property.
Cash flow is determined by (roughly) Gross Revenues minus Vacancies, Bad Debts, Operating Expenses. This is also known as free-and-clear cash flows or cash flows from operations. Consequently, its important to consider what can be done to maximize revenues and minimize expenses (welcome property managers).
Taxes are then determined from the Cash Flows from Operations. Normally, Replacement reserves would be added back while Mortage interest and Depreciation are subtracted (these are tax deductible) to yield the Net Taxable Income. To find out how much is owed for taxes, The Net Taxable Income is multiplied by the Tax rate.
Finally, what are the benefits you can reap from selling or refinancing the property in the future? This depends on a number of elements, some of which you can control, some that you can't: physical characteristics of the property, changes in the neighborhood, structure of leases, market conditions (interest rates, tax policies, etc.)
Of course, this is a gross generalization and there are other important factors that come into play when making
real estate investment decisions. However, if nothing else, remember these three components and you will be well underway to becoming a well-informed real estate investor.
posted by B. Samii @ 2:05 PM
