If I Pay Off The Back Taxes On A Home, Will I Own It?


I’m Ilyce Glink and here’s today’s real estate question: If I pay off the back taxes on a home, will I actually own it? Okay here’s your answer: not quite. Let me explain. If a property owner doesn’t pay the tax bill for a piece of real estate, the county assessor can actually sell the property to someone willing to pay the taxes. But in most cases, the investor who pays the tax bill doesn’t immediately get ownership of the property. Instead, the original owner has time to repay the investor the amount of the tax bill plus some interest rate, which is called redeeming the taxes. In many counties the owner has up to two years to bring the tax bill current and the investor might receive as much as 18 percent interest over that time. Now in an era where interest rates are at historic lows, 18 percent is a pretty awesome rate of return. And many people go into buying up properties at tax sales but aren’t really looking to take possession of the property. They’d rather have the homeowner redeem the taxes and earn a good return on their initial investment. Occasionally, there are situations where a tax sale may have been in error and the person that put up the money to buy the unpaid taxes at the auction may end up getting his or her money back, but they won’t get any interest on the cash. That’s not so good. If the taxes are redeemed, then the owner actually keeps the property. But if the two-year period elapses and the owner fails to repay the amount that’s owed plus interest, the title in the property would transfer to the ivnestor. And trust me, many investors wind up with title to the property. I have a friend whose brother lost several properties he owned because he failed to pay the back taxes. This is incredible to her. The properties were worth several hundred thousand dollars apiece and the investor picked them up for less than $10,000 per property. Wow. Now, that is an amazing rate of return, right? Even if the propeties needed a tremendous amount of repair. To find out more, contact the assessor’s office in your area. Thanks for your question. Don’t forget to share this video and follow me on Twitter and Facebook. Until next time. I’m Ilyce Glink.

The Nedder Group Coldwell Banker Greenwich Office


Welcome to my new office we’re right
across the street from Town Hall, we’ve got a ton of free parking Come on in, we’ll check it out we’ve got a powerful staff and a powerful coffee machine to
keep them moving I have an amazing marketing staff and great technology to showcase their work and the gym to keep us full of energy and keep us going and lots of free parking, so obviously we have a lot to offer. Come on down and
visit us here at The Nedder Group 66 Field Point Road in Greenwich. We look forward to seeing you!

What Actually Happens When You File For Bankruptcy


What happens when you can’t pay your debts? Well, once upon a time such as in ancient
Greece you might have ended up in debt bondage. Being a debt slave meant that you and sometimes
your family would work for the person you owed money to pay off your debt. This is distinct from slavery, since you were
freed once your debt was paid. Later on in history, like in Victorian England,
the poor were sent to horrific debtors’ prison and would only be released when their
debt was paid in full by friends or family. Other debtors’ prisons functioned similar
to workhouses and a debtor worked off not only their debt, but their room and board
to be freed. Currently, many countries now practice some
form of bankruptcy which reigns in debt and allows debtors to get a fresh start financially. That’s not to say that questionable debt
practices no longer exist; in some parts of the world, such as South Asia and Sub-Saharan
Africa debt bondage is still practiced. The United Nation estimates that 8 million
people are trapped in bonded labor. Thankfully, there are many groups working
to improve lives of and free people from what the UN considers a ‘modern day slavery practice’. However, today we’re discussing the basics
of how personal bankruptcy functions in the United States. There are actually 6 different possible types
of bankruptcy in the US. They are each named for the portion of the
Bankruptcy Code they are found under: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter
13 and Chapter 15. Each Chapter addresses a different type of
bankruptcy, for example Chapter 9 applies to the bankruptcy of municipalities such as
towns or cities. The majority of individuals file one of two
types of bankruptcy, Chapter 7 or Chapter 13. People choose to declare bankruptcy for a
myriad of reasons. Many financial literacy websites such as Investopedia
state that a significant amount of people declare bankruptcy each year in the US due
to costly health events. Two other major reasons why people end up
filing bankruptcy are due to losing employment and poor financial choices, including excessive
spending. Bankruptcy is a legal proceeding, where an
individual, spouses together, or a business makes a formal request to a federal court,
declaring that they are unable to repay outstanding debts. Each type of bankruptcy requires different
forms and procedures. For Chapter 7 bankruptcy the debtor petitions
the court that they are unable to pay their debts. So let’s walk through how a Chapter 7 bankruptcy
could proceed: Meet James. He has some student loans from getting his
college degree, some credit card debt, medical debt from emergency ER visit, and until 5
months ago, a decent job. Unfortunately, after being laid off, James
quickly ran through the small amount of saving he had. While James has moved into his parent’s
basement to save money and has been working some temporary gigs while he continues to
look for a permanent job in his industry, he’s months behind some bills. James decides to file bankruptcy. The first step is that James must undergo
government mandated credit counseling. The US Trustee’s Office maintains an approved
list of agencies that provide counseling at reasonable cost. Debtors are required to file a certificate
of counseling completion along with their other bankruptcy forms. Sometimes going through the pre-bankruptcy
credit counseling helps a debtor to develop a plan to resolve their debts without going
into bankruptcy. James’ second step is to file bankruptcy
forms with the court and pay fees associated with the cost of his case. In some instances, debtors can request a fee
waiver. Generally, mandatory bankruptcy court fee
costs between $300-$400 USD. The bankruptcy paperwork James has to fill
out is pretty extensive; it includes forms listing financial information, assets, income,
expenses and property exemptions. An important requirement for a Chapter 7 bankruptcy
is that the debtor does not have sufficient income to pay even at least a portion of their
debts. If the debtor has enough income, they must
file under Chapter 13 bankruptcy, which we’ll discuss shortly. The decision of which type of personal bankruptcy
to File Chapter 7 or Chapter 13 is determined through The Bankruptcy Means Test which calculates
the debtor’s income, expenses and debts to see if any repay is possible. Once James has completed the filing part of
the bankruptcy process, an automatic stay goes into effect. This stay stops most debt collection efforts,
which James really appreciates, constant calls from creditors have been making him anxious. In addition to halting communication from
creditors, automatic stays stop wage garnishments. In some cases they even temporarily stop repossession,
foreclosure or eviction proceedings for the duration of the debtor’s case, allowing
time for the debtor to come to an agreement with the creditor. After James files paperwork, the court appoints
a trustee to handle his bankruptcy case. The trustee reviews James’s paperwork.Then
his assets become part of the bankruptcy property and are scrutinized and evaluated by the trustee. The fourth step in the bankruptcy process
is the meeting of creditors held by the court. At the meeting, James under oath answers questions
about his finances from the trustee and any creditors who choose to show. Once the trustee gathers and reviews all applicable
information pertaining to James’ debt, the court makes a decision on whether or not James
is eligible for Chapter 7 bankruptcy protection. If the court denies eligibility, James may
have the option to file for Chapter 13 bankruptcy. Thankfully the court granted James’ petition. The trustee now decides which of James’
assets to sell off for money to pay his creditors. Some assets are considered exempt from liquidation
such as the house the debtor lives in as long as the mortgage is current, household furnishings
or a personal vehicle up to a specified value–basically essential assets needed to maintain a life. Common assets that are not considered exempt
are investments, jewelry, valuable artwork or collectible items such as a stamp collection. Each bankruptcy case is unique and the assets
sold depend on the facts in the individual case. Also, different states set their own rules
as to what assets are exempt and non exempt. Seventeen states allow debtors an alternative
choice, they can either choose the state exemption system or opt to follow another set of exemptions
created by Congress, called the federal bankruptcy exemptions. If a debtor lies or tries to hide assets and
is caught, the debtor can face penalties and may not have their debts discharged. In some cases, debtors can face criminal charges
for fraud for providing false information when filing for bankruptcy. Depending on the individual situation, the
debtor may be able to negotiate with the trustee to keep certain nonexempt property if they
come up with enough cash or are willing to give up exempt property instead. So James has to sell his coin collection to
pay towards his debts, but is able to keep his paid off, few years old commuter car. Depending on the state a debtor may only receive
an exemption for the functional version of an essential item. For example, if James owned outright a $40,000
car sports car, his trustee may sell the car for $40,000, use $35,000 to pay towards James’s
debts and give him a $5,000 credit for an exempt car. At this time James must resolve any secured
debt by either returning the collateral or property or reaffirm the debt, meaning that
he will continue to make payments. If James didn’t own his car outright and
has an overdue car note, he would have to let the car be repossessed or get current
on the car note and continue to make payments. Obviously, if it’s an expensive sports car,
James will have to let it go, but if it’s a budget commuter car, it may behoove James
to figure out a plan to keep making payments. The final step James must take is to complete
a debtor’s education course and file a certificate with the court confirming completion. Then generally within 3-6 months after James
has filed, he will receive his bankruptcy discharge notification and the automatic stay
is lifted. Within a few weeks of receiving his discharge,
James’ case is officially closed and his unsecured debts–his credit card and medical
debt are cleared, he will continue to have to pay off his student loans. The public record of a Chapter 7 bankruptcy
remains on James’ credit report for 10 years. For Chapter 7 bankruptcy, some debts are not
eligible to be discharged. Non dischargeable debt includes spouse and/or
child support, most student loans, and income tax debt. Common debts that are wiped out are credit
card balances, personal loans and medical bills. If money is owed on a secured debt, which
means that the debt has collateral, such as a mortgage or vehicle loan, the debtor has
a choice if they are current on their payments: they can allow the creditor to repossess the
property, thereby discharging the debt or they can keep the property and continue to
make payments under the original contract. Debtors who don’t have any valuable assets
and only own exempt property, simply have their debt discharged and don’t repay any
part of their unsecured debt. The majority of Chapter 7 bankruptcies filed
for are granted. For Chapter 13 bankruptcy, the debtor petitions
the court with a different request, instead of selling off assets and discharging debt
like Chapter 7, debtors seek to reorganize their debt and establish a 3-5 year plan for
repayment. Chapter 13 payments are then made monthly
to the court appointed trustee, effectively consolidating debts into one single amount. The trustee then distributes the money to
the debtor’s creditors, and the debtor doesn’t have any direct contact with creditors. The Chapter 13 bankruptcy process may allow
debtors to stop foreclosure proceedings and catch up on delinquent mortgage payments over
time. It also allows debtors to negotiate and possibly
set new terms for vehicle repayment and to lengthen payment plans for past due income
taxes, child support and spousal support. Meet Nicole. She has a car note, a mortgage on a small
house and a pretty good job. Unfortunately last year, Nicole had a medical
emergency and missed a few months of work, wiping out her savings, which forced her to
mainly live on her credit cards. Even worse, the medical costs exceeded Nicole’s
medical insurance. Thankfully, Nicole has recovered and is back
to work fulltime. However, at this point she’s behind on her
mortgage, car note, some of her credit cards and has a lot of medical debt. When considering filing for Chapter 13, Nicole
opts to hire a bankruptcy lawyer. For both Chapter 7 and Chapter 13, many debtors
hire a bankruptcy lawyer to assist them through the process, which can be confusing. Hiring a lawyer is more common with Chapter
13, because it tends to be more complicated. A bankruptcy lawyer can cost anywhere from
$200 for a basic meeting up to around $6,000 if the lawyer appears in court for you or
your case is complex. In Nicole’s case, she feels like it’s
worth it to shell out a few thousand dollars to try to prevent the foreclosure of her house. Like with Chapter 7, the first step in the
Chapter 13 bankruptcy procedure is that Nicole must undergo government mandated credit counseling. Then she files bankruptcy forms with the court
and pays fee associated with the cost of her case. However, as a part of her filing Nicole submits
a debt repayment plan which is often developed during credit counseling. Also, it’s likely Nicole’s lawyer would
help her create a debt repayment plan. Once Nicole has completed this part of the
process, an automatic stay goes into effect limiting communication from creditors and
temporarily halting the foreclosure of her house. The court appoints a trustee to Nicole’s
case. Next, the court holds a meeting of creditors
and then within 45 days a Chapter 13 confirmation hearing is also held by the court. For both court appearances, Nicole’s lawyer
goes with her. Nicole’s lawyer has also been in negotiations
with her creditors to get her the best outcome possible. At the Chapter 13 confirmation hearing Nicole’s
repayment plan is reviewed. Creditors may ask for clarification and raise
concerns or objections to the repayment plan. By the end of this type of hearing the debtor’s
plan is confirmed, the confirmation hearing is continued for another day, allowing time
to redo the payment plan or negotiation between a debtor and creditor. In some cases, at the confirmation hearing
the bankruptcy case is dismissed or converted to a Chapter 7 bankruptcy. Luckily, at her first confirmation hearing,
Nicole’s repayment plan was accepted. Then the court considered whether or not to
have Nicole’s Chapter 13 monthly payment be deducted directly from her paycheck. They opted to let her make the monthly payment
to the trustee on her own. For the next 5 years Nicole will continue
to make a monthly pay on her debts. After 5 years, if Nicole has remaining credit
card and medical debt, it’s discharged. She will continue to make mortgage payments
for her house. During the 5 years, Nicole was able to complete
her car loan and she now owns her car outright. In general, Chapter 13 debtors must petition
with repayment plans that can take between 3-5 years to pay off. Once the years of repayment are completed,
the record of the Chapter 13 bankruptcy stays on the debtor’s credit report for 7 years. During the 3-5 year repayment process, the
debtor isn’t allowed to incur any more debt, such as a new vehicle loan, without court
approval. Also debtors must maintain insurance on any
collateral or properties. So why do people file bankruptcy instead of
seeking other options, especially since declaring bankruptcy affects credit scores? Having a record of bankruptcy makes it hard
for a consumer to open new accounts, obtain unsecured loans or credit cards and sometimes
makes them ineligible to purchase a vehicle for several years. Bankruptcies can even affect getting security
clearances or professional licenses. However, we’d like to stress that each bankruptcy
is unique and there’s no one size fits all answer; it utterly depends on the life situations
the debtor is going through. Dealing with creditors can be extremely stressful. Others need a guided plan to begin rebuilding
their financial health, sometimes bankruptcy is simply the best option available. No matter what your financial situation the
best option for you right now is to click on this video for another great episode of
The Infographics Show or on this video over here. You’re going to love them both but you’ve
got to decide on one so click a video right now!

This Is Not What Work-Life Balance Looks Like – Awkwafina is Nora from Queens


(vigorous stirring) Good morning, Father. How are ya? I made breakfast
this morning. Didn’t know if you like
chocolate chip or blueberry, so I made both. And they’re
excellent. (whispers)
Thank you, Grandma. (chuckling) I’ll just stick
to my toast. (Nora)
Okay, that’s fine. Grandma… your wok’s clean. Aww… Grandma loves Nora. Hey, Nora? How long have
you been up? Hours…
I spent hours doing my hair. Whoa! Whoa! Yeah, that’s different. And then you… made all this
stuff for… For work, yeah. I’m number two now. Golden Prosperity
Real Estate, right? Women empowering women. No listing
left behind. Because women is gonna…
be there. I gotta go. We both got Marcia Clarks! Oh, Ma. (laughing) (keyboard clacking) Hi, Nancy! Nora! Hey! What are you doing
here so early? I, uh, I organized
the reception desk. I checked all the messages.
I filed all the paperwork here. And we got staples, paper goods.
And the best part… (drawer opening) Highlighters. Wow, a whole drawer full
of highlighters… amazing. My new office strategy
requires a lot
of highlighting. So I’m gonna need
them on standby. That is… (drawer shuts) Until we go live. Live? Yeah. I took all our listings
and digitally entered them into a website builder. You know HTML? I do. I taught myself
in the last 49 minutes. And, uh, put this together.
And when I press this button
here… we’ll be online! Oh, my gosh.
That’s incredible, Nora. Thank you! You’re incredible.
You’re the best assistant
I’ve ever had! (sniffling)
Thank you. Thank you, bye! ♪ Damn, look at that walk ♪ ♪♪ ♪ I’m a bad bitch,
I do what I want ♪ ♪ I’m a bad bitch,
I do what I want ♪ ♪ Smoke all day,
then get some head ♪ ♪ Smoke all day,
then get some head ♪ ♪ How you gonna stunt
when your card gets declined ♪ ♪ How you gonna stunt
when your card gets declined ♪ ♪ Damn, look at that walk,
walk ♪ ♪ They see the shoes
they be like ♪ ♪ Damn, look at that walk ♪ Oh, yeah. ♪ They see the moves
they be like ♪ ♪ Damn, look at that walk ♪ ♪ Look at that walk ♪ ♪ Damn, look at that walk ♪ Ahh. ♪ You slept on a bitch,
now watch a bitch blow up ♪ Nora, wow, the office
looks amazing! Are those
fresh flowers? And is that
a telescope? Yeah. So you can see
the stars, Nancy. Nora, you’re incredible. You change your
hair or somethin’? Yes, I changed up
a little bit. Big hair means big sales. Is that right? ♪♪ (gaming sound effects) (Kofi)
You just killed me.
I’m on your team! What are you doing?
We were going to trade that mandrake root
with the merpeople! No! We do not negotiate with
(bleep) merpeople, all right?! Build that wall! Aw, Nora,
I hate Americans! I hate the (bleep) French.
I hate Gérard Depardieu. Little bitch. Where’s the fruit platter? Where’s the
fruit platter? (cabinets slamming) The fruit platter’s
on the table. You just set it down. Right, right.
Yes, right. Nancy called me
last night. Oh, no, what’d she say? She hates me?
She wants to kill me? She wants to set me on fire? I brought these pillows
to her office. The pink ones
are psychotic. What? No. She says you’re
doing really good. She says that you’re the best
office worker she ever had. Yeah, well,
she’s wrong. Because there’s always
work to be done. And I’m– and I’m still…
(blows raspberry) You know what I mean? Don’t be so hard
on yourself. You’re doing really
good, Princess. And your hair
looks really great. Thank you. You look like
Farrah Fawcett. Huh? (chuckling) Who’s that again? “Charlie’s Angels.” Yeah…
I gotta go, I’m late!

Earn more money, pay less tax | Money matters | Touchstone Education


– Hello, welcome. Today, I’m going to show
you how to earn more money and pay less tax, sound good? (upbeat music) You’re all probably
sat out there thinking, ’cause everybody does think this, the more money I earn, the
more tax I’m going to pay. And I understand exactly
why you would think that because that’s how
you’re trained to think. You are trained to believe
that once you earn more money, then you can earn, as a
20% tax payer, you pay 40%. And then when you go over
150,000, whoa, whoopee! Now you’re going to pay 45%
and you’re going to lose all your allowances. And you’re going to carry on
paying national insurance, you’re going to be paying
53% tax at that point. You’re actually now not
working for yourself or anybody else, you’re
working for the government because you’re giving 53%
of your money to them, and I don’t want you to have to do that. It’s your legal obligation to
pay the correct amount of tax and set the appropriate
measures to optimize that tax. I’m not talking about tax
avoidance or tax evasion, I’m talking about managing it. If you don’t have the tools, you can’t. So this isn’t a complete
everything you need to know about tax, this is specifically
what you need to know to make sure you’re not
paying too much tax. So, I’m going to take a situation
where we’ve got a person and they’ve got a job, but it could be a job or it
might be that they’ve got, they’re self-employed but
they’re paying some sort of national insurance and
tax based on an income. But for the purpose of this, I’m just going to assume it’s PAYE, but it could be if they’ve got
their own business as well. And I’m going to say this
person, we’re all different, aren’t we? I’m going to say they’ve
got 60,000 pounds PAYE, pay as you earn. So that’s going to put them into
the higher rate tax bracket, they’re going to be paying 40% income tax, they’re going to be
paying national insurance, they’ve got various taxes. So what they take home,
this is a nice simple number to work with in the sense
that it’s five grand a month. And it’s more than twice
the national average, so if you’re sitting out
there listening to this and you are earning
60,000 pounds, well done! Because you’re actually earning
double, more than double, the national average. But you will know if you get
paid 5,000 pound a month, by the time it actually
gets into your bank account, it’s an awful lot less. Now, I can’t tell you
precisely on this video what it’s going to be because
you’re all going to have an individual tax code. Now that tax code is the amount of money that you’re allowed to
earn before you pay tax, and it’s got various factors in there, so you will have an individual tax code, and it’ll just say it. It’ll like end in a K or something and it’ll be on your payslip. So you’ll be able to see
all of these numbers. So the first practical
exercise that I want you to do is I want you to go and
get out your payslip and make sure you understand it. ‘Cause it’ll have all the entries on it and if you’re getting given
an amount of money every month but you don’t know what it means, and if you’re just focused
on your gross and your net, and if you just know that
you’re on 60,000 pounds a year and you take home 3,500 or something, or 3,200 or whatever it is, I know you’ll know those
numbers ’cause that’s what hits your bank account every month. But I need you to
understand it more than that ’cause I want you to split
out the various kinds of taxes you’re paying, and I want you to understand
why you’re paying them. Because income tax is
something that can be managed. National insurance, which I just realized I haven’t finished there, I don’t actually regard
national insurance as a tax. And I would want to go out of my way to make sure I did pay
my national insurance. More of that later, but in order to get your old-age pension, you actually have had to have
paid your national insurance for a minimum number of years, and the more years you pay it
for, the more pension you get. So national insurance, for
me, isn’t really a tax. You’re paying money now so
that you can have a pension, a state pension, in old age. So this is all happening over here, and you’ve got it on your payslip, so your first job, get out your payslip and make sure you understand
the various types of tax. Now, what we’re going to do
next is we’re going to go and start to buy some houses, we are going to have a property business, and this is my first and strongest advice, make sure you understand
the tax implications of whatever you’re doing with property. ‘Cause properties can, very
quickly, start giving you significant passive incomes, and if you don’t know how to
manage the tax implications of that, you’re going to end
up paying far too much tax. And I’m sure you’d agree with this, it’s not about what you
make, what your income is, it’s about what you keep. Like they say in golf, for instance, you drive for show, but you
actually putt for dough. So it’s not about the big
flashy, top line number, oh, I’m on 300,000 pounds a year, that’s not the correct way to measure it. The way to measure it
is well, how much money goes in your bank every
month after you’ve paid for all your taxes and
insurances and everything else? So for the sake of this
example, I am going to say that we’ve got a property business, and I am going to say
that we’ve got a number… I’m going to pretend that
you’ve been doing this for, I don’t know, four or five years, and so you’re maybe four years
into your property business, and each year, you’ve done the courses, you’ve had the education,
you’ve learned how to do it, and each year you’ve bought
two houses, or flats, or something, or whatever. And then, as you got more advanced and you understand there’s more options. See, by the end of four years,
you’ve got eight buy-to-lets, but you’ve also done a
couple of commercial deals, so I’m going to say they’re shops, but you’ve only been doing
that for two of the four years. So you’ve got eight buy-to-lets
and you’ve got four shops. And I’m trying to be very realistic here because if you’ve been a
property investor for four years, is it possible that you end
up with eight buy-to-lets and four shops, you bet you it is. So what kind of money are
they going to be producing? How should you own them and
how should you manage the tax? So for buy-to-lets, I want
you to seriously consider putting them into a limited company. So in your limited company, you’ve got your eight buy-to-lets. Hope you’re following all of this. But shops are commercial. These are residential, so if
hear people talking about resi, they’re short-handing it for residential. So what they mean by residential, they mean where somebody lives. So a flat or house or a
HMO, something like that. But then separately, I actually
want you to have a pension that owns the four shops. Now, for the sake of this argument, I actually don’t mind whether this pension is a SIPP or a SSAS, and
don’t get yourself all het up about that, these are
just two different kinds of private pension and I’m not
going to talk about that today. Just going to keep it nice and easy. But you’ve bought four shops,
you’ve put them in there. Now, in terms of money, what
are the buy-to-lets doing? Well, the buy-to-lets I’m
going to say are producing an average of 250 pound a month each. So you’ve got 250 times eight,
which is 2,000 pound a month. There’s obviously 12 months in a year, so your buy-to-lets
are producing an income of 24,000 pounds a year. That’s profit after all costs. So you’ve taken in some rent,
you’ve paid the mortgage, you’ve paid a letting agent, you’ve done whatever you need to do, and after everything, it’s
realistic to expect a buy-to-let to give you about 250 quid a month. But you’ve got eight of them. And you might be off
on some other strategy, like you might doing
service accommodation, you might be doing tenant buyers, you might be doing rent-to-own, but I just want to keep
it dead simple for today. You’ve got 24,000 pounds a year profit from that limited company. In addition, you’ve got
four shops over here, they’re just nice little shops. What they’re doing is they’re
producing 1,000 pound a month, each, but you’ve got four of them, and that’s giving you
4,000 pounds a month, or 48,000 pounds per annum. So, suddenly, you’ve gone from
just having 60,000 pounds, you’ve got an extra 24 grand of profit from your buy-to-let business, and you’ve got 48,000 pound
a year in your pension. Does that sound like a nice
place to be four years from now? And do you think you need
to know how to manage those income dreams so you
don’t pay too much tax? And would you be somewhat shocked to learn that if you manage this properly, despite the fact that you’ve actually got more money coming in, you can actually pay less tax over here? ‘Cause most people think they’re
going to do some properties on the side or whatever, they never actually
think, in my experience, well, how can I use all of this to reduce my tax bill in my day job? They never think that. And it’s very wise, by the
way, in the early years of being a property
investor to have a day job because it makes getting mortgages for all this lot a lot easier, because you’ve got 60,000
pounds, happy days! Okay, so how do we manage this? First, and this is going
to sound counter intuitive, but I want to just take
the top line numbers and share the principles, and I’m not going to go
to the fifth decimal place ’cause I just want to keep it easy, I want to share the principles. What I want you to do is
take some of your PAYE money and actually pay it into your pension to buy all those shops with. And let me talk you through that. You would set up a SIPP or a SSAS, I help people do it all
the time, it’s very easy, and it doesn’t matter if you haven’t got any pension right now. ‘Cause three quarters
of this country of ours doesn’t have a pension, and
I find that quite scary. Three out of four of us
don’t know how much we’re going to live on in retirement, can’t tell anyone that asks
them what their plan is for a pension, and it’s
just all too difficult, all too hard, and we don’t do anything. But imagine how nice it
would be to have four shops giving you a thousand pound a month each, 48,000 pound a year pension. Is that achievable three,
four, five years from now? Yes. Might it take you five
or ten years? It might. But one thing’s for sure,
if you don’t start now, you’re never going to have any. Very simple process to set it up, there’s a number of providers
that’ll do it for free, and it can be done within a
matter of six to eight weeks. That’s how far away you are
from having a pension set up. Now, the maximum that
you’re allowed to put into a pension every year, and I want you to put in
as much as you can afford, but I’ll tell you the maximum. The maximum is 40K per
annum, 40,000 pound a year. But in terms of the impact that would have on your take-home salary, they’re giving you the tax back. So every 10,000 pounds you put in there is only going to cost you six,
if you’re a 40% tax payer. So, you’re not quite getting
double your money, but nearly, and if you’re a 45% tax payer, you are very close to
getting double your money. So, for every 60 pence,
as a high-rate tax payer, that you put over here, you’re
going to get 40 pence tax back. That’s powerful. And you’re building for your future, and essentially I want
you to ask this question, instead of having six
pounds of income now, or 6,000 or 60,000, or whatever, now, would I rather have 10 pounds, or 100,000 pounds, when I retire? And I’m now, I’m a pensioner
by the way, I’m 55, so I can actually draw my
SIPP or my SSAS if I want to. ‘Cause most people think they can’t retire until they’re 67, 68, whatever it is, and even then they can’t afford to. Well, I can afford to retire
now ’cause I’ve been doing this for 15 years. But this is realistically
achievable over that time frame. So, by putting 40,000
pounds a year over here, you’re actually going to
be getting, effectively, 16,000 pounds of that is tax back. So it’s not going to cost your
40, it’s going to cost you 24. And there’s a reason why
I’ve done it this way, this is not an accident
that I’ve used these numbers as examples. So the next cost to you if
you put 40 from there, there, is not 40, it’s 24. Which is remarkably similar
to that number, isn’t it? In fact, it’s the same. So what you’re doing here is
you’re giving up PAYE income, which is the most tax
inefficient way to earn it, you’re putting it into
a pension where your 24 suddenly becomes 40, and can you go and buy a
shop or something for 40K? Well, I don’t want to go
too far into it today, but you don’t need to
because whatever you’ve got in your SIPP or your SSAS, not you, but the SIPP or the
SSAS can borrow an extra 50%. So the 40K here, it can
take a mortgage, not you. So your 40K becomes 60. So can you now go and buy, because you put 40,000
pound a year in there, I said four shops, that
wasn’t an accident either ’cause you done it for four years, yeah? So you’ve put 40K in, but then each year, you’re adding a 20K SIPP
or SSAS mortgage to it, which is how I’m getting
to my 60,000 pounds. Can you buy a shop for 60,000 pounds, or an office, or a factory,
or a warehouse, or a whatever? The answer is yes, you can. These numbers work, how do I know? ‘Cause I’ve got loads of them. So you can use your tax-free
income to put into a pension that can then go and start
earning money off of shops, or offices, or industrial
property, or warehouses, or garages, or I don’t
know, whatever you want. That then, so this is,
you’ve got four of them, and that’s how much they
give you every month. And this part of it is completely
incredible, blows my mind, and I’m so pleased to be
able to share this with you. It’s insane, still, even now, 15 years after I started doing it, that 48,000 pound a year, 0% tax. That’s pretty tax efficient. And I’m now at the stage where I’ve got, well, I’ve got more than that, but it doesn’t matter what I’ve got, I’ve got a full-up pension fund. And because I’ve been doing
it for enough years, 15, very quickly your annual income, I’ve said you’re four
years in in this example, your annual income from the shops, well, you could even stop
putting the money in now, even that income on its
own, borrow 50% more, that’s enough to buy a shop with. So you’ve now kitted out a pension scheme with enough residual income
that you can just reinvest it every year and get another one. So, it’s 0% tax plus one free shop. So you’re adding one free shop every year, because you put some money in, you’ve got a big tax
credit ’cause you’re making pension contributions, that’s all tax free ’cause
it’s inside a pension, and then you’ve now got
it to a critical mass where it just, it’s like a
snowball going down the hill, you’re getting a free shop every year, which means that goes up every year. And you’re all stood out
there thinking this is insane, what’s the catch? That’s the catch right there,
you didn’t know about it. This is the biggest kept
secret, this is the… Pensions, if you said to me
Paul, in this country of ours, what is the biggest scam? I would say pensions, because if you put money
into a pension scheme and you don’t know all this stuff ’cause you haven’t educated yourself, ’cause they don’t teach
you at school, do they? Come on, I can see you
all through the lens, show me your hand if you did a class on commercial property
investing, using pensions, in school. No hands, didn’t think so. The most you can put
in your pension scheme is just over a million. So it’s currently a million and 40,000. Now let’s say you’ve
put a million and 40,000 into your pension scheme, and you retire, ’cause this’ll be ridiculous, that’s like 10 times the national average. But I want to show you
how massive a scam it is, even if you done that. ‘Cause people say to me oh,
define benefit pensions schemes, final salary pensions schemes, they’re the best you can
have, they’re not, in my view. Because you take a million quid, put it into something called an annuity, that’s what the pension
fund will buy for you when you retire, so effectively, you give them the money, put it into an annuity, and
the annuity will pay you about 3%. So that means your million pounds, you’re going to get a pension
of 30,000 pounds a year. That’s lunatic! You’ve got to live 33 years
to get your money back. ‘Cause when you die, that’s gone. You’ve lost it, nothing for the kids. So if you retire at 67, you’ve
got to live to 100 years old to get your own money back. Now if that’s not a scam,
please tell me what is. But that’s the institutions,
that’s the system, that’s what we’re all
told to do, it’s insane! So, you’re thinking well,
fine Paul, that’s fantastic, but I can’t afford to take 40
grand of my 60 grand salary and stick it into my pension
to buy my shops with, I’ll be skint, the kids will be hungry, no holidays in Marbaiya,
I’ll have to sell the car, or whatever, some version of that. Well, why do you think I’ve
got you invested in buy-to-lets in the first place? So it’s costing you a net 24 grand, you’re making 24 grand over here, extra. So how much is this actually costing you? Nothing if you know how to structure and put it all together in
terms of pieces of the jigsaw. But now you’re saying well, Paul, how do I get my 24 grand
profit out of there? I’m going to have to pay tax on it. Yes, you are. So what kind of taxes are
you going to have to pay on that 24 grand? Well, if you made a profit, I mean, there’s a whole level
of other sophistication, but this is just the really basic stuff. This is the really basic stuff, because can you reduce
that profit, for instance, by charging your car mileage against it? Yes. How much are you allowed
to charge, 45 pence a mile. How many miles a year, 10,000,
that’s four and a half grand. So you could reduce your taxable profit by claiming 4,500 pounds for motoring. And if, as a property
investor, you’re driving about looking at properties and
considering investment areas, is that a legitimate business
mileage, of course it is. Now, please tell me where you
can go in the United Kingdom without seeing a house,
or a shop, or an office of some kind, ever? So could you be doing
research, legitimately, on different areas? And this all needs to be
legitimate, of course. What else could you do
to reduce the profit? So, I’ve talked about car
mileage, let’s write that down. 45 pence per mile, maximum
10,000 miles a year, and that’s per person. So that’s you and, I
don’t know, your partner, your misses, your fiance, whoever, boyfriend, girlfriend, don’t care, as long as they’re part of the business. Board meetings. For years and years and years
I was a senior executive in a big company and we
used to have board meetings. Not every month. 80% of the managers, or
the directors, sorry, that were part of my board
would live in the UK. The only place we never had
a board meeting, the UK. We would go to Singapore
or New York, or wherever. Is that a legitimate
business expense? Yes. Could you extend and
have a few days holiday while you were there, after
your board meeting? Yes. Could you be thinking about
doing service accommodation in Marbaiya, yes you could. So is there a legitimate
reason why you might have a board meeting over
there, and tag on a holiday? So I don’t want to go into that today, there’s loads of ways
you could reduce that, but let’s say you’re
making a profit of 24 grand after you’ve used legitimate strategies to reduce the profit. Well, I don’t want you to pay
that to yourself as salary because you’ve already
got a salary over here, you’ll kick straight into
40% tax, no, don’t do that. And the company will have to pay employer’s national insurance. You will have to pay
employee’s national insurance, you’re just going to get
taxed to kingdom come. You’re going to lose half of your money. So that 24 grand, I specifically want you to pay it to yourself as a dividend. And this is as complicated
as I’m going to get in this video today. But I want you to understand,
you have to understand, the essential elements of dividend. So a dividend can only
be paid from profit. So you’d actually have to
declare a profit in the company of 24 grand. And that means that you’re
going to have to pay corporation tax, so not income tax, yeah, I know, by now your head’s spinning. Another tax, oh, what’s all this? Corporation tax. Well, corporation tax, this year, is 18%, but next year it’s dropping to 17%. So let’s say, for this
example, 24,000 profit, going to pay 18, next
year 17, so it will be 17 by the time you actually do this, ’cause this is in four
years time, isn’t it? So what’s 17% of 24? Well, 20% of 24 would be 4,800, so 17% is roughly 4,400. I haven’t got a calculator,
I’m just doing it in my head, but it’s four and a half grand. Now you can pay dividend. So from your 24, you’ve
got roughly 20 left that you can pay yourself as dividend, so this money now goes
back that way, to you, ’cause you’ve given up some
of that to go in there, yeah? You got that. That’s building a pension for the future. You’ve supplemented it,
you’ve replace it there, and I’ve made the numbers the same. I can’t make them exactly the same ’cause I’ve got to take the tax out. So, you’ve got 24 profit,
pay your corporation tax, bar a few hundred pounds,
you’ve got 20K left. So now, back into your personal
bank account as a dividend, you’re going to pay 20,000 pounds. How much tax do you pay
on that, personally? Well, you are going to pay the
first 2,000 pounds of dividend equals nothing, it’s tax free. Now, I’m keeping it
simple, there’s one person in this example. But let’s say you’ve
got your wife in there and two of your adult children. This 2,000 pounds is per
shareholder, per year. So if there’s four of you, you could be pulling out
8,000 pounds tax free every single year. You can’t make this stuff up. Of that dividend, you
are going to pay 7.5%. So 7.5% on 18K. Well, 10% on 18K will be 1,800, 7.5 is three quarters of that, so you’re going to be
paying about 1,300 pounds, so you can give yourself
20,000 pounds of income and your tax is going to be at 7.5%, and again, in my head,
I might be 100 quid out, I think it’s about 1,300 pounds. So you’re total tax bill is
about four and a half there, one and a half there, it’s
going to be about six on 24. But if you just push that
through as a 40% tax payer, it’ll be more than double that. So your tax efficiently
using your PAYE money to build your pension
to buy shops and stuff, which you’re going to
save for your old age. You’re using your limited
company to replace the income that you’re putting into your
pension, so it’s almost free. So I got a question for you. Hopefully I haven’t, looking back on it, it looks a bit complicated now. But that’s the easy version. So my second action, my
second activity for you is I wanted you to go and
check out your payslip, and make sure you
understand all the numbers, that’s number one. Number two, I want you to
go and find out about SIPPs and SSAS’s ’cause you can’t
do this unless you know what a SIPP or SSAS is
and you get it set up. Number three, and
perhaps most importantly, I want you to ask yourself a
question, and the question, so your third and most important action, if you want to take an action from me, is why you haven’t done this already. And what, specifically, are
you going to do about it? But first, I want you to
understand why you haven’t done it. I know you can do it, I’ve done it, I train thousands of
people every year to do it. I’m going to give you the two
reasons that will stop you from doing this. I really hope you’ve
found this video useful. The two things, in my
experience, that you have to have in order to make this happen. Number one, knowledge. As a wise man once said,
“Information is not knowledge.” All of this stuff is in the public domain. All of it’s available on the internet. Well, if information is all you need, then surely to Christ
everybody would have done it. So information is not knowledge. So I need you to equip
yourself with knowledge. And if you did that, if
you were tax neutral here because you had some
buy-to-lets replacing the income that you were putting into your pension, but you built a million pound pension fund by the time you were 55. My pension fund yields
an average of 12.5%, which is more than 125,000 pounds a year. So my pension gives me more
than 10,000 pounds a month. And if you can gain a pension
of 10,000 pounds a month without it costing you anything, and instead of getting it destroyed by putting into an annuity, you’ve still got the
million and 40,000 pounds, and the income through the
shops that it’s throwing off is 125 grand a year,
it’s 10 grand a month. Think of what difference
that’s going to make, because when you die and you
will, I’m sorry, at some stage, what happens to that pension fund? Goes to your kids, it’s
not like an annuity. You keep it, your family keeps it, it goes wherever you want it to go. So the biggest question I want you to ask is why you haven’t done it. And I know what it’s going to
be, it’s going to be knowledge, so go and get the knowledge,
go and invest in yourself to get the knowledge
to be able to do this. Second thing you need to
do is take some action. So those are your three tasks
if you want to take them on. You’ve been wonderful, I’ve been Paul, hope you enjoyed it, see you soon. If you’ve like it,
please literally like it, subscribe to the channel, get
your friends to do the same. You’ve been wonderful, I’ve been Paul, see you next time, bye-bye.

Why I Refuse To Pay Off My Mortgage | 3 Reasons


I refuse to pay off my mortgage. You know,
some people are like, “Well Kris, are you ever going to pay it off?” Like you’ve got
the money. You put a million dollars down on this house.
That was the minimum that I could in this particular situation. Reality is I
don’t want to have my debt paid off. We live in a society that thinks that it’s
all about having no debt and that debt is bad. But the reality is when you’re in
investments, when you’re in real estate, when you’re a business owner you realize
that some debts are really really good. So, in today’s video, I want to actually
share with you the 3 reasons why I refuse to pay off my mortgage. And the
best way that I can probably demonstrate that is by actually showing you one of
my favorite vehicles that I’ve ever owned. This right here is… It’s an I-8. It’s the
brand-new one. It’s a 2-seater. It has a top down. My poor car has wash me written
all over it because it’s been snowing. You can check this out it’s really
beautiful out here right now. Yeah. But with all the snow coming down, it’s been
totally dirtied up. But this car is 180,000-dollar car,
right? I don’t even know if it’s in the supercar category or not. It’s my second
one I’ve ever owned. I love the way that it feels. It’s either all electric where
I can kick on the turbo engine in the back. And because it’s all made of carbon
fiber… Like, check this out. The entire frame is carbon fiber. You can
see it all right through here. And because of that, the battery sits super
super low. That means that I can go 120 miles an hour around like canyon curves.
And the person next to me always going to be wetting themselves like thinking
they’re going to die but this cars just not gonna flip and it’s not going to lose
traction. It’s an amazing beast. But for $180,000, I could have this car paid off.
And instead I choose to have a $2,700 a month payment. Why would I do that?
Well… So, here’s reality: $2700 a month is like $32,500 a year. Right? And I take that $180,000. I put into real estate earning 25% and I’m running $45,000 a year. So, what’s bigger?
$45,000 a year or 32,000? Well, one of them is
12 and a half. $13,000 more a year. By the way, if you
made a decision that made you $12,000 a year better off,
wouldn’t you make it? Well unfortunately, Society is really… Like in this certain
like way of thinking that is all about how do I keep my stuff paid off? How do I
get out of debt? Like it’s a bad thing. And consumer debt for the most part, you
should actually do your best to stay out of. But take this house for example. This
is a multi-million dollar house. You know, it’s weird with banks. Like the more
complicated your financial situation or the more money you make or the more
assets you have… Like, the less non-ideal you actually look to the bank. And so, I
had to put about a million dollars down to get this house. And when am I going to
pay it off? Probably never. But there is a
mathematical equation that I use to know what you should actually pay off your
house. And I’m actually going to show you that. So, here’s the 3 things I’m
concerned with. The first one is I’m concerned with opportunity cost. Which
you need to know this word. It’s an economics term that basically says, “What
are you missing out on with the choice you’re making?” When you’re like, “I got to
pay off my debt.” Yes. At what expense? Like, what are you missing out on? Yes, I
totally agree get out of consumer debt. But if you have it, you have it. When I go
into real estate for example and I’m making 25, 28, 30 percent a year on my
money, I’ve always got to ask, “This debt cost me 7% but I’m earning 25%.” And that’s a delta of 18% difference. Like the asset growth is way
more important than having no assets just so that I can avoid a 7% debt. That
makes sense? Opportunity cost says, “What are you
missing out on with the choices that you’re making?” Number 2, we are so
obsessed with ownership. but what we should be really possessed with is
control. How do I control assets? How do I access assets versus have to own, right?
And the third thing is in the beginning, you know how hard it is to come by money?
So, you want your money earning interest. Like these are the things that you need
to financially allow your mind to really be thinking about. What am I missing out
on that’s a better financial decision? And you’re always thinking about assets
versus liabilities. Higher returns versus lower returns. Number 2 is how can I
control something or access something without owning it? And the third one is
“How do I get as much of my money earning interest as possible?” Most of our
financial plans, you know what they are? Eliminate the debt, put
stockpile a little bit of money. And the realities will never save enough money
for retirement. So, we’re busy trying to pay stuff off like a mortgage when we
can’t afford to. You put all your money on it and then what happens when your
house is paid off? Well, you get some peace of mind you sleep good. And you
think, “Well, if I lose my job at least I’ll always have my house.” Well, dude. When
you get to retirement or when you can’t work, you can’t eat your bricks. Like, you
need money to still live. And so, I want to do this math for you. And now, I want
to answer the question. When should you actually pay something
off? The time to pay things off is when you have a residual or a passive income
which is greater than your expenses. So, right now, my residual income is
significantly greater than my expenses. So, I could now just pay everything off.
I still can’t bring myself to do it. Because it just feels stupid. I mean, the
reality is what I’m doing is working. French economist J.B Shay in the 1800’s
said that creating wealth is just a function of of replacing low yields with
higher yields. It’s just that simple. This is the language of ROI. This is what
we’re talking about. This whole thing, this house… This house is really
beautiful. I love this home. It’s beautiful to live in. Dude, if you can’t
check out the window here, like, the snow is coming down. It’s just gorgeous. It’s a
winter wonderland here. I love it for this time of the year.
And yet, if I tie up all of my money in this, then that money can’t be sitting in
investments earning a superior return. So, in most cases, I’m able to produce
earnings in excess of 25 or 30 percent a year. And I can usually borrow money at
4, 5, or 6 percent a year. That difference is why I become wealthy. And
if you don’t have access to investments producing that, I’m gong to change that for
you right now. In the link below, get a copy of my track record on my last 4
thousand deals. In it, I’ll actually show you how you can access the best deals in
the country that are producing 25- 30 percent. And instead of
wasting years or decades trying to get things paid down, you should take those
years in decades actually creating assets that far outweigh the debt. This
document will show you exactly how to do it. It’s really impressive it shows you
all of my wealth building techniques. And all you got to do is cover the shipping
and I’ll put it in the mail and get it sent out right to you. Other than that, if
you want to know what I do in the game of real estate that burns me those
returns, click the next link and I’ll show you how I became financially free
at the age of 26. And hopefully how you can beat me at it.

Article 4 | HMO Planning And Licensing Explained | Simon Zutshi


– Hello, in this video I wanna
explain to you the difference between HMO licencing requirements and HMO planning requirements. This is a topic that people
get very confused about and in fact so much so it
puts a lot of people off doing HMO properties ’cause
they just don’t understand the regulations and the requirements. And that’s a real shame because
HMOs are one of the best strategies to quickly replace your income. So let me explain what you need to know. So my name’s Simon Zutshi, I’ve
been investing in properties since 1995 and I got my
first student HMO in 1998. So I understand a little bit
about licencing and planning, and it’s understandable people
get confused about these, so I wanna make this
as simple as possible. So first of all let’s talk
about HMO planning requirements. So if you have a large HMO
with seven or more people living in that property
it’s no longer seen as a normal residential
property and you have to apply for a change of use to
make it suis generis which means in a class of it’s own. So that’s for seven or
more tenants, large HMOs. If you have a small HMO
for up to six people, in most areas you can take a normal house, you can convert it into an
HMO for up to six people, and you do not need planning permission because you can use
permitted development rights. However, in an area that
has been made an article 4 direction area, what that
means is the local council don’t really want more
HMOs so they’ve introduced article 4 direction,
and what that means is it’s withdrawing the
permitted development rights. So therefore if you’re in
an article 4 direction area, it means if you wanna take a normal house and turn it into an HMO
for up to six people you would also need to apply
for planning permission. Now the whole point is
the council don’t want more HMOs so it’s likely that
that planning application will be automatically rejected. Now you can always appeal,
and if it meets the criteria it might be that you do
get planning permission, but what you don’t wanna
do is go and buy a house in an Article 4 direction
area thinking you can just turn it into an HMO because you probably won’t be able to do it. So that’s planning, let’s
look at that on one side. The other thing I wanna
talk about is HMO licencing. Now it used to be that
if you had a property with five or more tenants
on three or more floors you would need to apply for
a mandatory HMO licence. However in October 2018
the government changed the regulations so now that any property with five or more tenants
needs to have an HMO licence, and they are unrelated tenants. So if it’s a family of
five, that’s not an HMO, if it’s five or more unrelated
people that needs a licence. However, you need to check
with your local council because in some areas some
councils say three or more people who are unrelated
needs an HMO licence because that is actually
the technical description of an HMO, three or more unrelated people living in a shared accommodation. So it’s important you check
with your local council to understand if the property
needs licencing or not. Now what you need to
understand as I said before, planning and licencing are
totally separate matters. You might have a property
that requires a licence but doesn’t need planning,
or one that needs planning and doesn’t need a licence. Or one that needs planning and licencing, or one that needs neither. So it’s really important to
understand the fundamentals, you must think about
planning separately first, and then think about
licencing to understand what the requirements are. It is important that if
something does need planning, or does need licencing you
adhere to the regulations because you could get
fines, you could get, if it’s planning you might
have to change the property, so it’s really important you
understand the regulations and follow them. Now the thing is most people
don’t understand this, most people don’t bother
to educate themselves, and so they get put
off actually doing HMOs because they don’t really understand it. As I’ve explained once
you know how this works it’s actually pretty straightforward, and I maintain that HMOs are
one of the best strategies to quickly replace your income. On my 12 month Property
Mastermind Programme we teach many, many different strategies. Just one of the strategies is HMOs, but a lot of people like HMOs and do HMOs because it’s the quickest way for them to replace their income. So I do hope this video
has been useful to you, if you like it please do
like it, please share it, please tell people about it. And also why not
subscribe to this channel, but also I’ve prepared three
special training videos all about HMOs, houses
of multiple occupation, to show you exactly how
you can profit from those. If you’d like to benefit from
those click on the link below, we’re gonna be releasing them very soon. Just register your details
and I do want you to register, I’m not gonna send to everyone. I only want to send to
people who want information about HMOs. So go and register right now,
and we’ll get those videos to you very soon. So my name’s Simon Zutshi,
Invest with Knowledge, Invest with Skill.

Why “Billionaire’s Row” Pays the Lowest Property Tax Rate in NYC


432 Park Avenue, designed by Rafael Viñoly is the tallest residential tower in the Western Hemisphere. One57 designed by Pritzker Prize winning architect Christian de Portzamparc has service run by Hyatt’s five-star staff from their Park Hotel. This is Billionaires Row, a stretch of new super tall residential skyscrapers with multi-million dollar apartments in midtown Manhattan.But many of these 100 million dollar apartments that have been purchased, now sit empty, and their owners pay less in property taxes than the average New York City homeowner. These apartments are a safe investment. They’re also lucrative. Not only because the New York City housing market keeps climbing upwards, with a 52 percent price increase, and new developments over the past five years, but also because they don’t cost a lot to maintain. That’s because their taxes are so low. The billionaires who own these apartments are paying a tiny fraction of the taxes that they’d be paying if they lived in a regular apartment building of the same price. Look at this chart by CityLab. It shows how much the apartments would be taxed if the city used the average property tax compared to how much they’re actually paying. The reason why they’re not paying anything in taxes is because New York City’s property tax laws were put into place in 1981. New York City sorts all property into four classes; small residential, large residential, commercial, and industrial. Classes one and two are for the small and large residential buildings. The buildings we’re looking at fall under class two, since they are almost all individually owned condominiums without rental incomes, the city’s Department of Finance chooses a comparable rental building, and creates an imaginary income statement for the condominium based on how much its rental counterpart is making. Then they formulate a property tax off of that number. They don’t take into account the sale price. So, that 100 million dollar price tag is ignored. The problem is is that there is just no comparable buildings for those on Billionaires Row. Any comparison is a wild undervalue. So, billionaire owners pay the property tax rates of buildings with way, way less value. Not that they’re complaining, and there’s more additions on the way. 111 West 57th Street, designed by SHoP Architects is the skinniest, super tall building in the world. Central Park Tower also called the Nordstrom Tower is not completed yet, but will top out as the tallest residential building anywhere. When architect Jean Nouvel’s new building nicknamed The MoMA Tower is complete, it won’t compare to any rental building. After all, do any of those have temperature controlled wine vaults? The owners of Billionaires Row pay less property taxes by percentage than most homeowners. But Mayor Bill De Blasio and a Democrat-filled city council formed an advisory commission on property tax reform in May. They’re looking for a way to make their system revenue neutral, which would hopefully balance out the vast disparity in property taxes. Even still, the buildings have passed a literal shadow over Central Park, and have noticeably changed the New York City skyline. But one thing is for certain, this is where the money is. Leave a comment below, throw us a like, subscribe, and ring the bell to be notified for our next video.

HMO Property Myths | 5 MYTHS BUSTED | Simon Zutshi


– In this video I wanna cover
the five myths about HMOs. Houses of multiple occupation. My name’s Simon Zutshi, I’m
the author of Property Magic, the Amazon number one
property best seller, I’m the founder of the
Property Investor’s Network, I’ve been investing in
property since 1995, and I’ve been a student
HMO landlord since 1998. And a lot of people want to
get into HMOs ’cause they want the best strategies to
quickly replace your income. However, a lot of people put
off because what they think they know about HMOs, and
actually, some of these are the biggest myths
that are just not correct, or maybe they’re partly correct. So that’s why in this video I wanna cover the five big myths about HMO properties. So, HMO property myth number one is that there is an oversupply of HMOs everywhere, and so you shouldn’t do HMOs. Well, let’s be honest;
there are lots of HMOs, and in most areas there
might be a little bit of an oversupply. However, if you look at
the stock that’s actually available, you go onto spareroom.co.uk, you’ll see that most of
the accommodation available is very average, very plain, HMOs. And I maintain if you have
good HMOs, better than the average quality in
the area, then you should always be able to find tenants. So yes, if you’re trying
to do a very average, bog standard HMO, there is an oversupply. If you’re doing the higher
end, better quality, people will always want
those and be prepared to pay more money to live in
a better quality property. So, myth number two is that
HMOs are a lot more work than single let properties. And I would agree; one
HMO is more work than one single let, buy to let property. However, if you look at
the income you can create from a good HMO, it’s
equivalent to about four or five single let properties. So to make a fair comparison,
you should look at the amount of work involved
with one HMO compared to four or five single
lets, and I would suggest an HMO is not actually that much work. So when you know what you’re
doing, you have great systems in place, and it needn’t take much time to have your HMO up and running. The next big myth about
HMOs is that every HMO needs to have an HMO licence. That’s simply not correct. So an HMO, technically,
is a property that has three or more unrelated people
living in that property. However, not all HMOs need licencing. The government guidelines
that came out in October 2018 say that if you have a property
with five or more tenants then you need to have an HMO licence. Now, some councils interpret
it in a different way and they say three or more tenants, so the key here is to
contact your local council, the HMO licencing
department, speak to them, and understand what are the
requirements in your area. Now if it does need a
licence it means you have to fill in an application
form, you have to provide a sketch, floor plan of the property, to say where the fire doors
are, and the smoke alarms, et cetera, and you need to
make sure the property’s setup correctly with all
the safety requirements. I believe you have a moral
and ethical responsibility, as well as a legal
responsibility to make sure you’re providing safe accommodation
for all of your tenants. The next big myth, myth number four, about HMOs, is that all HMOs
need planning permission. Again, this is not correct. So let me explain planning to you, and it’s a little bit complicated,
but I’ll try and keep it as simple as possible. So if you have a larger HMO
with seven or more tenants, it’s no longer seen as
a residential property, and in fact it’s its own planning clause called sui generis, so
you would need to apply for planning permissions,
get a change of use from a residential into
sui generis for seven or more tenants. Now if you have a smaller
HMO, up to six tenants, then in most areas of the
country you could take a normal house, convert
it into an HMO for up to six tenants, and you can use what’s called permitted development,
that means you do not need to get planning permission. Unless it’s in an article four area. Now, article four has
come in in some parts of the country, it is
coming into some parts, and in some parts it will never come in. And what it is is the local
councils who’ve applied article four, means they’ve
got the right to withdraw permitted development rights. So therefore if you
wanna take a normal house and convert it into an
HMO for up to six people, you actually now need to
get planning permission to be able to do that. So, most councils that
brought article four in, they don’t want more
HMOs, so if you apply for planning permission, it’s probably gonna be rejected automatically. However, if your property
meets all the criteria, it doesn’t mean it
won’t get planning under the correct conditions
if you go to appeal. The other thing is, in
an article four area, you can actually buy an existing HMO, and as long as it’s
been an HMO since before article four came in, and
it’s been used continuously during that time as an
HMO, you could apply for what’s called a certificate
of lawfulness which means you don’t need to get planning. So if it is an article
four area, the key here is to speak to the local
council, this time the planning department, find out
when article four came in, so you know how long you have to make sure you got the correct records for. If article four isn’t in place, find out, are there plans for it to be coming in? And if so, when is that the case? In which case, if you’re taking a house and turning it into an
HMO, you need to make sure it’s finished and tenanted
before article four starts in that area. Another quick tip for you here; if you look at the boundary
on which article four lies, there might be a street
which has some HMOs, and half of the street is article four, and the other end of the
street is not article four, and that end of the street
you could absolutely do HMOs, and it might be a perfect location. So always look at the boundary,
really good tip there. And the final HMO property
myth is that you need to have lots of money to do HMOs. Well I would agree, if you’re buying HMOs, especially if doing conversions, there is money required to do that. Doesn’t mean that it has to be your money. It could be money you’ve
borrowed from someone, it could be a joint
venture, where you find the properties and do the work, and someone else puts in all the money. Or there are a couple of other strategies where you don’t have to
put in a lot of money. For example, rent to
rent, where you take on someone’s property,
maybe they’re struggling to manage it themselves, and you give them a guaranteed rent, and you
rent it out for more money, such as, as an HMO. And you make the margin,
the difference between what you pay the landlord, and what you charge the tenants. It’s a great strategy, especially
if you’re starting out. The other thing is a
purchase lease option. Similar to rent to rent,
you pay a guaranteed rent to the landlord each month,
you rent the property out, you make a margin, but with a PLO, purchase lease option, you
also have the right to buy the property in the future. Now that’s really powerful
because you can get potential equity growth
as well as great cashflow from a property. So those are the five most
common myths about HMO property. I do hope I’ve explained some of them, and really, if you know what you’re doing, you can make a huge
amount of money from HMOs. I’m not saying it’s easy,
there’s definitely work involved, but the time
and effort you put in will be very well rewarded. A good six bed HMO could
make you a thousand pounds profit a month, therefore
you probably don’t need that many HMOs to actually
replace your income and allow you to have the time
to do what you want to do. So I do hope this video has
been interesting for you, please do comment below, please share, please like, and if
you’d like to learn more about HMOs, I’m creating
three in depth videos of a lot more training about
HMOs, all you have to do is click on the link below this video, and you’ll be able to
subscribe and get access to those three videos. I don’t wanna just send them to everybody, I wanna send the people
who are interested in HMOs, that’s one way to opt-in,
give us your email address, and we’ll send those video training to you over the next few weeks. So my name’s Simon
Zutshi, I’d encourage you to invest with knowledge,
invest with skill, thanks for watching.

Are You Using VR In Your Real Estate Marketing? #485


Hey, everybody, it’s Aaron Norris
with The Norris Group. It is Friday, January 17th, and are you using these as part of your marketing? That and much more as we cover the biggest headlines in real estate. Up on the radio show and podcast, we’ve got Cary Pearce. He is in the mortgage industry and has been for 35 years. We talk about the state of lending, how it’s changed over the last couple of years, if it’s getting more risky, accessory dwelling unit financing and way more. So don’t miss that on the radio show and podcast this week. The Mortgage Bankers Association reported that the amount of available mortgage credit decreased in December by three point five percent. Mortgage delinquencies were at their lowest in 20 years in October with 3.7% of mortgages being in some stage of delinquency. They also reported a 3.2% increase in mortgage applications. And Freddie Mac says mortgage rates are now at 3.65% for 30-year and 15-year rates are at 3.09%. If you missed the newsletter, make sure to go on thenorrisgroup.com/turmoil. You’ll get a free look at our TNG economic newsletter, which is typically only for VIP subscribers. We go through county information, updates on iBuyers in several counties throughout California, and some of the things that we’re going to cover at Turmoil. So, thenorrisgroup.com/turmoil. It’s free. The video is up. Go check it out. A new report from ATTOM Data Solutions found that buying a medium-priced, three-bedroom home was more affordable than renting in 53 percent of the 855 counties analyzed across the U.S. In 36 of the 43 counties nationwide that had a population of one million or more, renting was more affordable than buying. This includes the nation’s largest cities like New York, Los Angeles, Chicago, Houston, and Phoenix. No surprise there. Cities where it was still cheaper to buy than rent include Detroit, Philadelphia, Cleveland and Pittsburgh. Additionally, three highly populated counties in Florida, including Miami-Dade, Broward and Hillsborough County, was on that list as well. With home prices rising in 67% of the U.S. markets, renting could become an even better option in the year ahead. Did you know there are currently 218 cities with one million dollar averages on a typical home? Yikes. Three more than at the end of 2018 and 74 more than there were five years ago. And did you know that more than half of these are in three metro areas? Bet you can’t guess what they are. Yep. L.A., New York and San Francisco. 46 in San Francisco, to be exact. 43 in New York, and 30 in Los Angeles. And in 2020, eleven more are expected to join the list. Five cities will lose their million-dollar status in 2020. They are – so I think it’s Kahlua, Hawaii, Milpitas, California, Harding Township in New Jersey, Daly City, California, and Fremont, California. Sorry about it. A story on Marie Claire this week says if you’re buying a home, you need to consider more than making your budget. Hidden costs can sneak up on you if you don’t pay attention. Of course, things like down payment and closing costs will hit you up front as far as things that you’re going to need in your budget. But second are the ongoing fees: interest, PMI, homeownership insurance, HOA, property taxes, and of course, renovations and overall maintenance. My favorite is air conditioners. Air conditioners do not like me. And whenever I buy a house, it invariably goes out in the first year or two. So you better be prepared for that. If you want to make sure you can afford your new dream home, you better follow these tips. 1. Save, save, save. 2. Improve your credit score. 3. And learn to negotiate, because you’re going to need that extra cash later. The future is here, and while it isn’t the future of my childhood cartoons and dreams like flying cars on the Jetsons, technology is allowing some really cool things in real estate. One of those is advances in 3D virtual reality tours. 2D photography has been used to make rooms appear larger than they actually are. 3D walkthroughs are designed to show people what it’s truly like in a home. They can see that from anywhere without having to be in the physical space. Show you the dimensions of a room, any angle in any view, has the freedom to look around. This is actually something we’re handing out. I guess this is the first time we’re announcing it. It’s actually virtual reality glasses. This is a Google Cardboard. So at the live event Turmoil, every guest will get one of these. You put your phone in it, and you’re going to be able to look
around the models in Florida, and I’m hoping to get a few accessory dwelling units, which should be really fun. So if you’re there, you’re going to get one of these. And it’s really interesting to see how a matter port – this is a matter port that we’re using in conjunction with this – how they’ve decided to include the virtual reality experience. I think virtual reality is going to have some very unique opportunities in the years ahead for marketing as well. I’d like to know if you’re including VR technology in your marketing. Love to hear what you got to say. What if I have a flip phone? Flip phone? You need a new phone. If you’re on YouTube, please leave your comments below the video, and don’t forget to like and subscribe to the channel. Hit that bell if you’d like to receive notifications when we have new videos come online. If you’re on Facebook or any other social media platform, please like and make sure to like the Norris Group page so you can find our content online whenever we produce it. Leave your comments below the video. Give us some love. And don’t forget to share. If we missed the story. Also, feel free to leave a link in the description below. We would love to see you out and about. Of course, February 1st we have Turmoil: The Coming Storm of Changes. We have been really excited to announce this last week that Chris Porter and Robert Kleinhenz is going to join our panel on profits in progress, while profits in politics is going to be featuring leadership in the governmental affairs and legislative industries around the builders, the Apartment Association, and the California Association of Realtors talking to us about what they got watered down in 2019 and what to expect in 2020. Turmoil is not all about a recession. Half the day is going to be on timing, and the other half is going to be where RISAs is going to pop up. That has nothing to do with the economy but could impact the economy. And that’s politics and change. So you won’t want to miss it, but we’re very excited to announce those. If you’re interested in signing up, go to thenorrisgroup.com/turmoil. February 10th: 6 Things to Succeed in 2020 with L.A. South REIA. March 19th is our Florida boot camp. So if you’re interested in attending, you’re gonna want to sign up early because you got some homework before we go. That is on our calendar. So you won’t want to miss that. April 1st: 6 Things to Succeed in 2020 with IVAR. All of our events you can find on thenorrisgroup.com under that Events tab under Live Events and Training. For hard money loans, including fix and flip, buy and hold, and new
construction, as well as accessory dwelling units, hit that hard money tab. And for passive investing with the Norris Group, hit that Invest tab. With that, have a fantastic weekend and we’ll see you next week.