Archive for

Bring in a Tree Trimming Service for Tree Care and Upkeep on Your Property

Even thriving trees can use a little professional TLC from time to time. Hire a tree trimming service to keep your trees looking their best.

The trees in your yard add beauty and character to your landscape. Whether you have a few mighty oaks, a long row of pines, or an array of ornamental cherry trees, you want to ensure that your trees look their best and reflect well on both your property and you as the property owner. Well-maintained trees can add value to the land and make your yard a truly pleasant place to be.

But aesthetics are only one reason to consider hiring a tree trimming service for tree maintenance. Regular trimming and pruning can boost your trees’ health, helping them grow taller and stronger. Tree care can also ensure the safety of everyone who uses the yard, as well as protecting your property from tree-related damage due to falling limbs. Look for a tree services professional in your area with the knowledge, skill, and training to take all of these considerations into account.

Tree Appearance

If you put effort into maintaining your home’s exterior, from regular paint jobs and clean windows to a mowed lawn, why wouldn’t you also take steps to maintain your landscape elements? Well-groomed trees show that you care about your property. Of course, tree trimming doesn’t have to mean pruning each tree into an identical shape, unless you’re going for a topiary effect. It’s often enough to remove limbs that are dead or unsightly, and to trim back any branches that are in the way of your windows, vehicles, utility lines, or other landscape features. Whether you want an extremely groomed look or desire a wilder aesthetic, tree trimming will help you achieve that effect.

Tree Health

Tree trimming service isn’t just good for your property’s appearance; it’s also good for the trees. Removing diseased and insect-infested branches and limbs can keep problems from spreading to the entire tree. Additionally, dying and diseased limbs can sap nutrients from the healthy part of the plant, and thus removing limbs that can’t be saved can make the entire tree stronger. Thinning out crowded branches and getting rid of limbs that are rubbing together can also strengthen the tree, making it better able to withstand storms and other natural events. However, it’s best to hire a professional tree contractor to conduct pruning and trimming, because improper tree cutting-even with good intentions-can harm the tree and stunt its growth.

Tree Safety

Heavy limbs, improperly balanced limbs, and limbs that are about to snap pose a hazard to your family and your belongings. The last thing you want is to ignore that dangling branch only to have it fall and land on your car, your home, or your child. Even if there’s nothing directly beneath the problem area, a strong storm could blow a broken branch or limb into a building or vehicle. Hiring a tree services professional to take a look at potentially dangerous limbs can help you avoid injury and property loss.

Trees are a major element of any landscaping plan, whether you choose to plant them yourself or you design your yard and home around existing trees. As such, they’re an investment in your property, and as with any investment, they require upkeep. Professional pruning and trimming will make your trees healthier and your property safer and more attractive. You’ll also potentially save money by preventing major issues rather than dealing with them after disaster strikes. To learn more about what’s best for your trees, contact a tree contractor or landscape specialist in your area.

Tax Advantages Of Owning Rental Properties

Rental Income

The first advantage of owning Rental Property is obviously the rental income you receive each month or period you choose. Rental income is considered a type of passive income and rental property is considered a business. This means that rental property follows the tax laws of businesses which means the government doesn’t automatically take money from you like they would if you were an employee. The best part about rental income is that it is fixed for inflation. If you get a fixed rate mortgage for 15 or 30 years that payment will never change because it’s “fixed”. However, your rental income will increase with inflation over the years creating a bigger gap between your expenses and your income. For example, if I have a piece of real estate property that I have to pay $500 a month for and my rent is currently only $525 then I am only making a $25 profit each month. Over time inflation sets in and rent will increase so that perhaps 5 years down the road I could charge $700 a month rent for the exact same apartment but still only pay $500 in expenses.

Phantom Cash – Depreciation

Phantom Cash can be taken literally, it is money that doesn’t exist. Phantom Cash is a government incentive and tax loophole of the rich so they can furthermore benefit from real estate. The government states that you can take the value of a building divide it by 27.5 years and deduct that amount from your taxable income every year. Let’s say that I buy a building valued at $60,000 and I rent it out at $500 a month ($6000 a year) then I would be allowed to subtract ($60,000 / 27.5)about $2181 a year from my taxable income. Meaning I would only have to pay taxes on $3819 $(6000-$2181) for that year not including the other deductions you get from real estate. There are a variety of tax advantages for real estate which makes it one of the best investment vehicles out there.

Appreciation

Appreciation is something just about everyone is familiar with. Over time your property will generally appreciate in value depending on the area. This is caused by several factors; inflation, cost of supplies, desire to live in certain areas, etc. If you buy a house for $60,000 and it appreciates at 2-4% a year(close to the national average) in 5 years your property would be worth somewhere between $66244-$70191 and all you had to do was own and maintain it for those 5 years. If you pick the right area you could do well with Appreciation. For example, from 2001-2005 in Sierra Vista, Arizona the property values nearly doubled. If you bought a house for $114,000 in 2001 people were easily selling these for up to $200,000 in 2005. The next section is going to talk about how to take advantage of appreciation and equity in your properties without paying taxes on them.

Tax Deferred and Home Equity Loans

There exists a form, called a 1031, which allows you to sell a property with the intent of upgrading to a more expensive property and not having to pay taxes on any of the capital gains you received from the transaction. For example, if you buy a house at $100,000 and you sell it 5 years later at $150,000 then you would be responsible for paying capital gains taxes on the difference $50,000 ($150,000 – $100,000). To get around this you use a 1031 form which allows a third party to hold the money for a period of time until you can put it back into another real estate investment of greater value. This allows you to keep upgrading your rental properties using appreciation without having to pay taxes on it.
The Home Equity Loan

Home equity loans are generally used for all of the wrong reasons; to pay off credit card debt, to have extra cash, to buy a new car, etc. Let me give you an example of how it can be used for good things. Let’s say you buy a rental property for $50,000 in 5 years it appreciates to $60,000 and you’ve also paid down the mortgage on it so that you only owe $40,000. You could now use a home equity loan to borrow up to $20,000($60,000 – $40,000) tax free. What you should do with this money is invest it back into more real estate deals, but most people have bad money habits and will do home improvements, which never really payoff, or buy things they don’t need. For example, a $20,000 dollar swimming pool may only increase property value by as little as $3000 and very rarely, if ever, increases it by the amount spent on it.

Other Deductions

Interest on Mortgage

As with being a home owner, interest on a mortgage can also be used as a tax deduction against rental income. Let’s use the figures above after the phantom cash deductions were taken out. On a building valued at $60,000 that earns $6,000 a year rental income after phantom deductions we were down to $3819 taxable income. Most fixed mortgages rear load interest, which means you pay mostly interest in the beginning and somewhere around the midway point it balances out and you pay mostly principal after that point. For scenario purposes let’s say you have a $48,000(20% or $12,000 down payment) mortgage on that property at 6% interest for 15 years. Your payment on the mortgage would be about $405 dollars a month or about $4860 a year and the schedule would look like this for the first 3 years:

* I = Interest, P = Principal, B = Balance
* I: $2,824.62 P: $2,036.00 B: $45,964.00
* I: $2,699.04 P: $2,161.58 B: $43,802.42
* I: $2,565.72 P: $2,294.90 B: $41,507.53

The first year you would be allowed to deduct another $2842.62 from your remaining $3819 which leaves you with about $977 taxable income. From this remaining money you are also allowed to deduct repairs, loss of money due to tenants not paying rent, property taxes, and possibly a few other things. Even if you were in a 15 percent tax bracket you are talking about having to pay 15% of $977 about $147 in taxes. That’s not including property taxes or repairs either. Rental Properties can be virtually a non-taxable form of income when you start out and still give great tax advantages when you are further down the line.

So why are people afraid to invest?

I’m Not a plumber

I hear a lot of people say “I’m not a plumber. I don’t want to be fixing toilets at 3:30 in the morning.” If a toilet breaks in your house do you fix it? If you do you are one of the few who knows how. Rental property owners do not fix toilets, property managers and plumbers do. When something in my house breaks, I call in a professional to do the work.

It’s too Hard

So is working for 40 years. Why would you not take the extra effort and have your money work for you? If you put a sincere effort into real estate, learn fast, and never give up, your passive income could easily be more than your expenses in less than 10 years. That means you don’t have to work anymore. There are property managers who will manage your property for 5-20% of the rental income and it’s even a tax deduction! All you have to do is find the deal and purchase the property.

There isn’t a Valid Excuse

It all comes down to you just have to do it. You can make excuses all day long and I could tell you why it’s not a valid excuse, but you’d just come up with another one and it would be an infinite loop. So you just have to go out there and do it. Thank you for reading this article.

How to Increase Property Value – 20 Tips That Wont Break the Bank

Every serious property investor should take the time to learn how to increase property value so he can maximise any returns on investment when it comes to selling. Property investment is really the only investment vehicle which enables the owner to actively increase the value of the asset. A shareholder can more often than not have very little impact on the stocks worth, they buy stocks in the hope that they will increase.

There is so much one can do to increase property value and you are really only limited to your imagination. Below are some guidelines to help you maximise the value of your properties without breaking the bank.

1. Bright rooms give the illusion of more space, Increase the wattage of bulbs in light fixtures to the maximum that is safe.

2. Keep all woodwork spotless. Use a wood restorative to make cabinets and trim look new.
3. A lick of paint can turn a room from old and tired to new and fresh. Strip old wallpaper and peeling paint. Three-dimensional or foil wallpaper must go. Paint all rooms that needs more than a little touch up.
4. Keep the colours neutral to maximise your target market. Not everybody likes bright colours!
5. Clear clutter, too much furniture will visually reduce the size of the room. Too many pictures on the wall will do the same. Keep bookshelves neat and organized.
6. Upgrade old or worn curtains with new ones. Mini-blinds and vertical blinds are preferable to heavy drapes.
7. Replace or reface if practical; stovetops, ovens, fan hoods, and other appliances that are avocado, pink, blue, yellow, or brown. White is the preferable colour.
8. Keep counters clean and clear. The more space you have available on the counter, the larger the kitchen appears.
9. Replace any broken, worn or outdated knobs, hinges and handles on cabinets.
10. In the kitchen and bathroom, strip out and replace old grouting and caulking at the slightest hint of discoloration.
11. Consider replacing tiling around tubs and showers if the colours are dated.
12. Trim back any trees and shrubs that might be blocking the view of the building.
13. First impressions count, Remove any dead plants, flowers, and shrubs. Plant flowers and shrubs that add colour and brighten your lawn and landscaping.
14. Keep walkways, paths, sidewalks, and gutters free of weeds and debris.
15. Repair any cracks/corrosion present in gutters and touch up with matching paint.
16. Check for and replace rotting boards and posts in decking and or fencing.
17. Try to make the garage (one, two, or three car) appear to accommodate that many vehicles, even if it’s full of stored items and boxes.
18. Repair lifted or severely cracked walkways and driveways.
19. Replace yellowed, worn, cracked, broken, or missing faceplates for switches and outlets.
20. Banish smokers. In a survey in 2004, potential homebuyers listed the smell of cigarette smoke as the biggest turnoff when viewing a property.