I am the basis of all wealth, the heritage of the wise, the thrifty and prudent.
I am the poor person’s joy and comfort, the rich person’s prize, the right hand of capital, the silent partner of thou¬sands of successful people.
I am the solace of the widow, the comfort of old age, the cornerstone of security against misfortune and want. I am handed down through generations, as a possession of great value.
I am the choicest fruit of labor, the safest collateral and yet I am humble. I stand before every person bidding them to know me for what I am and asking them to possess me.
I am quietly growing in value through countless days. Though, I might seem dormant, my worth increases, never failing, never ceasing. Time is my aid and the ever increasing population adds to my gain. I defy fire and the ele¬ments, for they cannot destroy me.
My possessors learn to believe in me and invariable they become envied by those that have passed me by. While all other things wither and decay, I alone survive. The centuries find me younger, always increasing in strength. All oil and minerals come from me. I am the producer of food, building materials and the home to every living thing. I serve as the foundation for homes, factories, banks and stores.
I have not been produced for millions of years, yet, I am so common that thousands, unthinking and unknowingly, pass me by.
Who am I? “I AM LAND.”
by: anonymous
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Sunday, October 18, 2009
Monday, September 28, 2009
Land as an Alternative Investment for IRA Account
Are you tired of dealing with tenants? Are you stuck with the stocks that have sunk in value in your IRA account? Land is an alternative to diversify your asset, especially for your retirement account. If you are not familiar with this subject, please read my previous posting on self-directed IRA.
There are two distinct components of real estate, the land and the building/improvement. As the time pass by, the land component usually (no guarantee) will appreciate in value and the building component will depreciate because of wear and tear.
Be aware that you should not expect quick profit from investment in land. Land is not a way for you to get rich quickly, instead it is a way to get rich slowly, if it is done correctly. What do I mean by done correctly? If you buy a land in the middle of nowhere, populated by skunks and raccoons, your land may not appreciate at all after you hold it for 20-30 years. Instead, if you buy pre-developed land in the path of growth, there is a higher chance that the land will increase in value because of the demand. What else do you have to consider in buying a land?
The land should:
• Not have a slope in excess of 15%
• Not be located in flood zone or earthquake zone area
• Not be in wetland area
• Be in a close proximity to a major metropolitan area
• Be easily accessible by highway, train or air travel
• Be located in an area with enough jobs
• Have adequate infrastructures and utilities (roads, electricity, gas, water, sewer)
• Have existing residential and commercial development
• Have existing or planned school system
Imagine a house in San Francisco Bay Area cost $70K in 1970. That same house today costs around $500K. If you bought a land worth of $70K in 1970, the land costs well over a million today.
Are you prepared for retirement? Do you think you have a plan in place?
Copyright © 2009 wealthaspiration.com - All Rights Reserved
There are two distinct components of real estate, the land and the building/improvement. As the time pass by, the land component usually (no guarantee) will appreciate in value and the building component will depreciate because of wear and tear.
Be aware that you should not expect quick profit from investment in land. Land is not a way for you to get rich quickly, instead it is a way to get rich slowly, if it is done correctly. What do I mean by done correctly? If you buy a land in the middle of nowhere, populated by skunks and raccoons, your land may not appreciate at all after you hold it for 20-30 years. Instead, if you buy pre-developed land in the path of growth, there is a higher chance that the land will increase in value because of the demand. What else do you have to consider in buying a land?
The land should:
• Not have a slope in excess of 15%
• Not be located in flood zone or earthquake zone area
• Not be in wetland area
• Be in a close proximity to a major metropolitan area
• Be easily accessible by highway, train or air travel
• Be located in an area with enough jobs
• Have adequate infrastructures and utilities (roads, electricity, gas, water, sewer)
• Have existing residential and commercial development
• Have existing or planned school system
Imagine a house in San Francisco Bay Area cost $70K in 1970. That same house today costs around $500K. If you bought a land worth of $70K in 1970, the land costs well over a million today.
Are you prepared for retirement? Do you think you have a plan in place?
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Thursday, September 3, 2009
Oklahoma City's Major Projects Despite Economic Gloom
Core to Shore
Despite economic gloom around the country, two major projects are going on in Oklahoma City. The City of Oklahoma City plans 20+ years Core to Shore project, estimated at over $3 billion of public and private investment. The project will transform the underutilized area between downtown (the “core”) and the Oklahoma River (the “shore”) into a world class design urban neighborhood.
Core to Shore plan includes the following:
• Realignment of Interstate 40 (I-40)
• Public parks and open spaces
• Hotel and convention center
• Over 3,000 housing units, ranging from single-family detached houses to residential towers
• Up to 550,000 square feet of retail space
• Offices
• Major civic buildings
• Multi-modal transportation center.
Devon Tower
Devon Energy Corp, the largest US based independent oil and gas producer, plans to construct the new corporate headquarters building in downtown Oklahoma City. Devon Tower, will be the tallest building in the Oklahoma City metropolitan area. At an astounding 925 feet tall, the construction will start at fall 2009 and will be scheduled for completion at 2012. Hines will be the development manager of the 54-story, $1.9 million sq ft, $750 million tower.
Interested to check Oklahoma City metropolitan area demographic and economic? Click here.
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Despite economic gloom around the country, two major projects are going on in Oklahoma City. The City of Oklahoma City plans 20+ years Core to Shore project, estimated at over $3 billion of public and private investment. The project will transform the underutilized area between downtown (the “core”) and the Oklahoma River (the “shore”) into a world class design urban neighborhood.
Core to Shore plan includes the following:
• Realignment of Interstate 40 (I-40)
• Public parks and open spaces
• Hotel and convention center
• Over 3,000 housing units, ranging from single-family detached houses to residential towers
• Up to 550,000 square feet of retail space
• Offices
• Major civic buildings
• Multi-modal transportation center.
Devon Tower
Devon Energy Corp, the largest US based independent oil and gas producer, plans to construct the new corporate headquarters building in downtown Oklahoma City. Devon Tower, will be the tallest building in the Oklahoma City metropolitan area. At an astounding 925 feet tall, the construction will start at fall 2009 and will be scheduled for completion at 2012. Hines will be the development manager of the 54-story, $1.9 million sq ft, $750 million tower.
Interested to check Oklahoma City metropolitan area demographic and economic? Click here.
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Sunday, August 30, 2009
San Francisco Bay Area Population Growth Forecast to 2035
Remember my posting about California population? According to US Census Bureau, as of July 1st, 2008, California is the most populated state with 36 million people. Half of Californians reside in the Greater Los Angeles Area (5 counties which are Los Angeles, Orange, San Bernardino, Riverside and Ventura), and 20% reside in San Francisco Bay Area (9 counties, which are Marin, Napa, Solano, Sonoma, Alameda, Contra Costa, San Francisco, San Mateo, Santa Clara).
That means around 7 million people are living in the Bay Area. Association of Bay Area Governments (ABAG) just released a projection, by 2035 over 9 million people will live in the Bay Area. That is two millions more than today!
Some of the issues that ABAG are trying to address are housing, jobs, transportation, energy costs and reducing carbon dioxide emissions. Complete forecast can be read here.
One classic question remains, where are we going to house these two million people? Among two scenarios presented by ABAG, under Focused Future scenario, the amount of greenfield development will be reduced. Instead, growth will be redistributed near area with high concentration of jobs and transit.
Should we keep building housing or should we let the natural selection apply (lack of affordable housing will force people to move out of the bay area)?
Copyright © 2009 wealthaspiration.com - All Rights Reserved
That means around 7 million people are living in the Bay Area. Association of Bay Area Governments (ABAG) just released a projection, by 2035 over 9 million people will live in the Bay Area. That is two millions more than today!
Some of the issues that ABAG are trying to address are housing, jobs, transportation, energy costs and reducing carbon dioxide emissions. Complete forecast can be read here.
One classic question remains, where are we going to house these two million people? Among two scenarios presented by ABAG, under Focused Future scenario, the amount of greenfield development will be reduced. Instead, growth will be redistributed near area with high concentration of jobs and transit.
Should we keep building housing or should we let the natural selection apply (lack of affordable housing will force people to move out of the bay area)?
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Tuesday, August 25, 2009
Transit Oriented Rental Properties
Investors who are seriously looking to invest in rental property, should understand well the difference between a tenant’s perspective and a homeowner’s perspective. Tenant is looking for convenience, while homeowner is looking for a nice and peaceful place to settle down or to raise a family. Tenant often prefers a place close to grocery, public transportation or easy access to major highways. Homeowner doesn't mind to buy a house in far away location in exchange for a bigger space for his/her family within the price range that s/he can afford.
A property close enough to public transportation, will make a good rental property, as long as not too close that it will be too noisy for the resident. An interesting area to watch out is President Obama’s administration’s proposal of $8 billion federal stimulus money to build high-speed rail (HSR) system in ten designated high-speed rail corridors across country.
Even though this plan has invited controversy from multiples parties, I would like to keep my eyes on properties located around the proposed high-speed rail lines. Of course the price has to make sense, which means the property has to be able to generate acceptable cash-on-cash return, so in case there is any change with Obama’s plan, you won’t be screwed.
Where are the ten corridors for proposed high-speed rail?
• Pacific Northwest
• California
• South Central
• Chicago Hub Network
• Northern New England
• Empire
• Keystone
• Southeast
• Gulf Coast
• Florida
See the map below for more detail.
Copyright © 2009 wealthaspiration.com - All Rights Reserved
A property close enough to public transportation, will make a good rental property, as long as not too close that it will be too noisy for the resident. An interesting area to watch out is President Obama’s administration’s proposal of $8 billion federal stimulus money to build high-speed rail (HSR) system in ten designated high-speed rail corridors across country.
Even though this plan has invited controversy from multiples parties, I would like to keep my eyes on properties located around the proposed high-speed rail lines. Of course the price has to make sense, which means the property has to be able to generate acceptable cash-on-cash return, so in case there is any change with Obama’s plan, you won’t be screwed.
Where are the ten corridors for proposed high-speed rail?
• Pacific Northwest
• California
• South Central
• Chicago Hub Network
• Northern New England
• Empire
• Keystone
• Southeast
• Gulf Coast
• Florida
See the map below for more detail.
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Sunday, August 23, 2009
Should You Invest in California or outside California? Part 6
“Florida? Probably not. The hurricane comes every year.” Some investors shy away from hurricane-prone area like Florida or Texas, but they forget that they life in an earthquake-prone area, California. While tornado and hurricane can be expensive to insured, they are still insurable risk. Earthquake, in my opinion, is almost an uninsurable risk, especially the big ones that attacked San Francisco in 1906 and Loma Prieta in 1989.
But how about the earthquake insurance? Earthquake insurance costs a lot of money, with not much coverage. California residents have the option to get earthquake insurance through California Earthquake Authority (CEA). Insurance companies that belong to CEA offer standard earthquake insurance policy with 15% deductible. Earthquake insurance is also available outside CEA. There is premium calculator available at CEA website. Imagine the next big earthquake is coming, even if you have an earthquake insurance coverage, if insurance companies receive too many claims, do you think they will remain solvent?
An alternative to buying earthquake insurance is to retrofit the property. The money paid for insurance premium overtime, may be well spent on the project retrofitting the property. Some lenders opt for borrower taking precaution steps rather than buying earthquake insurance. The structure should be tied to the foundation, water heater should be secured to the wall and cripple walls should be braced with plywood.
Investors, if you think Florida or Texas or Oklahoma are risky, think again! Diversify your asset geographically!
Copyright © 2009 wealthaspiration.com - All Rights Reserved
But how about the earthquake insurance? Earthquake insurance costs a lot of money, with not much coverage. California residents have the option to get earthquake insurance through California Earthquake Authority (CEA). Insurance companies that belong to CEA offer standard earthquake insurance policy with 15% deductible. Earthquake insurance is also available outside CEA. There is premium calculator available at CEA website. Imagine the next big earthquake is coming, even if you have an earthquake insurance coverage, if insurance companies receive too many claims, do you think they will remain solvent?
An alternative to buying earthquake insurance is to retrofit the property. The money paid for insurance premium overtime, may be well spent on the project retrofitting the property. Some lenders opt for borrower taking precaution steps rather than buying earthquake insurance. The structure should be tied to the foundation, water heater should be secured to the wall and cripple walls should be braced with plywood.
Investors, if you think Florida or Texas or Oklahoma are risky, think again! Diversify your asset geographically!
Copyright © 2009 wealthaspiration.com - All Rights Reserved
Thursday, August 13, 2009
Should You Invest in California or outside California? Part 5
If California were a country, it would be the eighth largest economy in the world. Look at the two tables below.
Source: The US Conference of Mayors, 2007
That statement was valid at least until 2007. How about now, after financial meltdown and eroding property values? True, the Golden State is going broke and experiencing budget deficits. But so do other 47 states. How bad are the budget shortfalls? Here are ten states with the largest budget gaps:
Source: Center on Budget and Policy Priorities
Copyright © 2009 wealthaspiration.com - All Rights Reserved
| Rank | State | Gross State Product (US$ billions) |
| 1 | California | 1,813.0 |
| 2 | Texas | 1,142.0 |
| 3 | New York | 1,103.0 |
| 4 | Florida | 734.5 |
| 5 | Illinois | 609.6 |
| 6 | Pennsylvania | 531.1 |
| 7 | Ohio | 466.3 |
| 8 | New Jersey | 465.5 |
| 9 | North Carolina | 399.4 |
| 10 | Georgia | 396.5 |
| Rank | Country | Gross Domestic Product (US$ billions) |
| 1 | United States | 13,841.4 |
| 2 | Japan | 4,375.4 |
| 3 | Germany | 3,325.8 |
| 4 | China | 3,280.6 |
| 5 | United Kingdom | 2,770.2 |
| 6 | France | 2,558.7 |
| 7 | Italy | 2,103.2 |
| 8 | Spain | 1,438.0 |
| 9 | Canada | 1,425.9 |
| 10 | Brazil | 1,313.3 |
Source: The US Conference of Mayors, 2007
That statement was valid at least until 2007. How about now, after financial meltdown and eroding property values? True, the Golden State is going broke and experiencing budget deficits. But so do other 47 states. How bad are the budget shortfalls? Here are ten states with the largest budget gaps:
| State | FY2010 before budget adoption (US$ billions) | FY2010 mid year gap (US$ billions) | FY2010 Total (US$ billions) | FY2010 Total – % of Budget |
| California | $26.00 | $19.5 | $45.50 | 49.30% |
| New York | $17.90 | $2.1 | $20.00 | 36.10% |
| Illinois | $13.20 | 0 | $13.20 | 37.70% |
| New Jersey | $8.80 | 0 | $8.80 | 29.90% |
| Florida | $5.90 | 0 | $5.90 | 22.80% |
| Massachusetts | $5.00 | 0 | $5.00 | 17.90% |
| Pennsylvania | $4.80 | N/A | $4.80 | 18.00% |
| North Carolina | $4.60 | 0 | $4.60 | 21.90% |
| Connecticut | $4.20 | N/A | $4.20 | 23.90% |
| Georgia | $3.10 | $1.0 | $4.10 | 23.80% |
| US | $139.4 | $25.7 | $165.00 | 24.00% |
Source: Center on Budget and Policy Priorities
Copyright © 2009 wealthaspiration.com - All Rights Reserved
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