Archive for September 2011
4 Definitions of Fair Market Value: Don’t Jeopardize Your Equipment Leases
September 28, 2011 | 
Author 
How would you answer the question “What is Fair Market Value?” If your answer is “About 10%,” you are only half right.
Fair Market Value of equipment is seldom “about 10%.” Although many leasing salespeople tell customers that 10% is their best estimate of what they’ll pay at end of lease.
Here are 4 definitions you should understand if leasing is a one of the ways you finance equipment additions.
1. Fair Market Value (FMV). No process defined. No parameters. Buyers beware. Read the contract and see what other options you have. Negotiate whatever the leasing company tells you.
2. Mutually Agreed to FMV. The leasing company determines the purchase price, not the customer. The lease agreement doesn’t contain a process to determine the price. Some lessors may feel that “I am the leasing company and you’re not. It’s my way, the highway or worse.” Worse may be a 12-month lease renewal followed by another FMV purchase option.
3. In-Place, In-Use FMV. This is tricky. Lessors may add extra costs not financed in the lease. If equipment requires added expense to install and de-install, such as rigging, site preparation, special electrical wiring, then these expenditures may be added into the now “not-so-fair market value” option.
4. Greater of Fair Market or 20%. The FMV may be more than 20%. If no process is defined, the price is usually higher than customers expect.
These four definitions are not the entire list of purchase options at lease end, but they are among the most overlooked and least understood. It’s best to negotiate before you sign the lease, but if you don’t, remember that all things are renegotiable.
By: Mary Redmond
Posted in Finance | 
Tags: Best Estimate, Definitions, Electrical Wiring, Equipment Additions, Expenditures, Fair Market Value, Finance Equipment, Lease Agreement, Lease Equipment, Lease Renewal, Leasing Company, Lessors, Mary Redmond, Option Market, Parameters, Purchase Option, Purchase Options, Rigging, Salespeople, Value Option | 
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Real Estate Agents Specialize in Location
Location is everything in the New Jersey real estate world. For buyers that are looking for an ideal home the location of a piece of property in their chosen neighborhood comes down to hiring a real estate professional to help them search the MLS database and set up showings of the listed homes for sale. While location is important to home buyers each individual has their own idea of what the perfect location may be. For a single person the perfect place to live may be in the heart of the city where they are close to the nightlife as well as being close to work. For a young couple starting out in their first home together, the convenience of being on the fringes of the city might be more appealing. Not quite in suburbia, but in a location that is convenient to the turnpike and has a number of restaurants and movie theaters to attend may be an ideal setting for couples. Then there are people with families who find that the best location for them is near good schools for their children and shopping centers for their weekly trip to the grocery store.
In neighborhoods throughout New Jersey real estate agents are busy at work helping their clients to find the perfect home in the perfect location. With so many options available for buyers having a realtor who understands the importance of each unique detail to them helps to eliminate homes that do meet the criteria of what they deem to be perfect. As each buyer has their own set of values that are important to them real estate professionals have the responsibility of determining the needs and requirements of each of their clients. Doing what they can to find the right location for each of their buyers, New Jersey real estate agents can help anyone to find a home that is perfectly matched to the best location for them.
By: Cleo Gib
Posted in Real Estate | Tags: Busy At Work, Cleo, Couples, Fringes, Gib, Grocery Store, Heart Of The City, Home Buyers, Location Location, Mls Database, Movie Theaters, Nightlife, Perfect Home, Real Estate Agents, Real Estate Professionals, Realtor, Shopping Centers, Showings, Suburbia, Young Couple | No Comments »
Greenspan’s Reign – The Technology Miracle Was A Mirage (2000-2001)
Despite the fact that Alan Greenspan wielded great power, he did not prevent the stock market bubble from bursting in 2001. By definition, a stock market bubble exists when the value of stocks has more impact on the economy than the economy on the value of stocks. By allowing disaster to strike, he brought US along with the world into financial ruin. All these wouldn’t have occurred if he had put the right policies in place to curb the burgeoning technology bubble. Let us now explore the coup de grace he made to making the bubble burst a reality.
During the period of 2000 to 2001, there were several initial public offerings (IPOs) where many companies vied to be listed in the overly optimistic stock market to raise capital. Despite such abnormal figures, Alan Greenspan failed to recognize that the IPOs were responses to a stock market bubble instead of the technology miracle. Holding on strongly to his erroneous economic beliefs, he did not increase margin requirements here which would have discouraged people from touching these IPO stocks that eventually burnt the wealth of many.
While he increased interest rates to 6.5% in May 2000, it was already too late to dampen the excessive optimism in the market. Moreover, the aim of this hike was not to stop bubble because he did not know of it in the first place. Such ignorance on his part was a bane to the economy as it ushered in disaster in years to come.
Looking at the technology miracle he claimed, it was also appalling to find out that there was no productivity growth in 99% of the economy outside the PC industry. In fact, it got worse but the technologically obsessed Federal Reserve did not notice it.
Furthermore, when energy prices rose sharply during this period, Alan Greenspan did not reduce interest rates as he thought the economy was in a good condition. In retrospect, this is ironical as he seems to have a propensity to judge situations wrongly by slashing interest rates when he shouldn’t but not doing so when he should have done it.
To add on, when he shouldn’t have done so, Alan Greenspan slashed interest rates to 6% on 3 January 2001. This reignited speculation and was done because all along, he has worked with flawed inflation and productivity data that understated inflation and overstated productivity.
To make things worse, he made 11 interest rate cuts for 2001 to 1.75% with no effect on the stock market. This clearly shows that the Federal Reserve has lost the effectiveness of its interest rate tool. Instead, such cuts worsened the situation as it gave people the chance to take out their money from stocks.
Here, as many people withdraw their money from stocks, the bubble bursts and following that, the market begins to crash. After years of ignorance in the Federal Reserve, the inevitable occurs and with this financial onslaught on the economy, more wealth was lost than created, plunging many into misery and despair.
In conclusion, having seen ignorance happening even in the leaders we trust, I believe readers already understand the fact that we are our only solution to finances. To get rich, we ought to make use of our greatest assets and make them work for us. The age of entitlement is over and the economy has evolved. Now, you can choose to move on or be left behind.
By: Ong Xun Xiang
Posted in Finance | Tags: Alan Greenspan, Bane, Coup De Grace, Economic Beliefs, Energy Prices, Federal Reserve, Financial Ruin, Initial Public Offerings, Interest Rates, Ipo Stocks, Ipos, Margin Requirements, Miracle 2000, Mirage 2000, Optimism, Productivity Growth, Propensity, Retrospect, Stock Market Bubble, Value Stocks | No Comments »
2009 Assessed Values and Budgeting For 2009 Property Taxes
The Premier’s intent was well meaning, in that his original proposal does give certainty. Taxes for 2009 would have been 2008 plus the additional % by which any municipality increases their budget.
A second proposal to choose the lower of the 2008 assessed values or the 2009 assessed values, allowed those with lower values at July 1 2008 [2009 valuation date] to have lower taxes.
What to expect
BC Assessment have not yet come out with all the rules and regulations; however, one might anticipate the following:
* Each Assessment Notice will have two values; the 2008 and 2009. The “roll value” will be the lower;
* In making an appeal, it should be possible to appeal both values, so that you can achieve the lowest, even if you did not appeal last year;
* The state and condition will be as at October 31, 2008 for the 2009 value and October 31, 2007 for the 2008 value;
* A property that has been physically changed as of October 31, 2008 should be assessed in the state that existed on that date but using [1] July 2007 values for land and [2] costs as at October 2007 for a 2007 value of the construction in place at Oct 31 2008;
* If you paid $5,000,000 in 2007 and now find additional costs not previously anticipated – eg. poor soils, your value should be lower;
* If the zoning changed, a new value as of July 1, 2007 should be created;
* If the use changed, then a new classification might be merited, particularly properties that are in the development stage;
* New buildings should be assessed at 2007 costs for the 2008 roll;
* Improved properties where land averaging was in effect in the City of Vancouver will want to have the highest value on the roll;
* Properties not appealed last year, which in hindsight were too high, can be appealed;
School Tax Reduction
Effectively, the mill rate for school taxes will be reduced for all class 4 and 5. The most relevant to an owner is the amount of space that can be classified 5 rather than 6 in an industrial building. It has been suggested that this reduction might continue for at least 3 years.
For years, we have tried to keep tenant areas out of class 5 because the mill rate was higher. It seems as though there might now be a substantial benefit in attempting to reclassify areas to qualify for the discount.
2009 Tax Budgets
Unless the 2007 value (2008 Roll amount) for the property is lower than the 2008 value (2009 assessed value), your assessment will remain the same.
The mill rate will rise because:
(a) Municipality will increase its budget;
(b) Some property values have fallen, thus decreasing the total assessed value on the 2009 Roll.
Mill rate = Taxes x 1,000____
Total Assessments
Thus, we will see an increase in the taxes equal to the proposed Municipal budget increase plus a “little”.
For properties whose values for the 2009 Roll (2008 values) are less than the 2008 Roll (2007 value), the increase will be less.
If you have any questions, please give me a call.
By: Peter Austin
Posted in Finance | Tags: Assessment Notice, Budget, Budgeting, City Of Vancouver, Development Stage, Hindsight, July 1, Lower Taxes, Municipality, New Buildings, Oct 31, October 31, Poor Soils, Property Taxes, Proposal, School Taxes | No Comments »
Buying A Home in a Down Market
Should You Wait to Buy in a Down Market of Falling Home Prices?
I know the Real Estate Market looks bleak right now. Sellers are thinking: “I will never be able to sell my home” and buyers are thinking: “I will never be able to get a loan in this market”. In this case, it could be perception is your reality. Everybody wants to know how to best time the market when buying a home. It’s just natural – especially if you’re thinking about buying in a down market where home prices are declining. You wonder how low they will go and whether you should wait, right?
Some Home Buyers Should Buy Immediately
You’re probably thinking: “Of course, he would say that. He’s a Realtor, and agents always say ‘Now is the best time to buy’.” Well, here is why:
? If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
? If you can arrange for alternate housing, a smart strategy is selling now, waiting a few months, then buying your new home.
? If you sell and buy simultaneously, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Consider the “Loss” on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must price it right and reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and “lose” $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You’re still ahead $170,000, less costs of sale, aren’t you? (This ignores monthly payments, but you would make those if you were renting, too.)
Consider the “Savings” on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.
Review of Selling and Buying Numbers
1. So you “lost” $30,000 on the sale of your home
2. But you “made” $50,000 on the purchase of your new home
3. Doesn’t that put you $20,000 ahead?
Don’t Forget the Impact of Interest Rates
Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
? FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
? FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
? FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.
Look at the Differences Among Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
? $425,000 sales price, at 8.25% interest, your payment is $2,554.
? $450,000 sales price, at 7.75% interest, your payment is $2,579.
? $475,000 sales price, at 7.25% interest, your payment is $2,592.
? $500,000 sales price, at 6.75% interest, your payment is $2,594.
? $525,000 sales price, at 6.25% interest, your payment is $2,586.
The payments are almost identical. However, the home you can afford to buy at 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.
Sellers
Despite the constant barrage of negative Real Estate news, keep your head up. Look at it in a more positive light. The thought that homes aren’t selling is just not true. You need to understand that you have to price it right. You CAN NOT say “let’s put it on the market for XYZ and if we don’t get a lot of interest, we can lower the price”. That is the kiss of death.
Like most Realtors, I want to list your home! That’s what I’m here for and that’s how I get paid. BUT, I have had to turn down a listing or two because the sellers had unreal expectations. Make sure you find a Realtor who will tell it to you straight, lumps and all. Anyone can be a “yes” man and that is robbing you of precious time and money!
Buyers
YES, you can get financed. Just because lenders have tightened their belts on loans doesn’t mean you can’t get one! Like I mentioned before, mortgage applications are up and the rates have been slashed. Now is the time to buy a home! Sellers are competing for your business. You no longer have to settle.
Regardless of all the negative information floating around, there is always a silver lining. In this case, sellers can sell and buyers can buy. A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don’t panic over newspaper headlines, make an informed decision, run your own numbers – then do what feels right to you.
By: Rob Alley
Posted in Real Estate | Tags: 10 Years, Best Time, Buying A Home, Distressed Market, Game, Home Buyers, Perception, Real Estate Market, Realtor, Smart Strategy | No Comments »
Shareholder Agreements Prevent Minority Shareholders From Receiving Fair Value
Our Investment Banking firm is receiving an unusually high number of inquiries from minority interest shareholders looking for help. Often times they have just been terminated and concurrently receive a Letter of Intent to purchase their minority shareholder stock.
When they look at these offers, they are hit with their second punch in the gut. The offers are often woefully short of what the terminated shareholder expected. However, when they start to investigate, the harsh reality of the situation sets in. IRS Revenue Ruling 59-60 allows steep discounts when valuing minority interests in privately held companies. The lack of marketability discount can be as high as 40%. A second discount for lack of control for up to 40% can be applied on top of that.
Theoretically, if you owned 49.9999% of a company with a $10 million value and these maximum discounts were applied, your $5 million value evaporates into $800,000.
Wait, it gets worse. The oppressive shareholder understands that through either the shareholder agreement or the Corporate By Laws, they have every right to buy your minority stock at an even bigger discount from fair value. I cannot tell you how many times I have seen almost exactly the identical language as below in either By Laws or Shareholder Agreements:
Right of First Refusal: “The Corporation Shall have the power, at its option to purchase any and all of its shares owned and held by any shareholder who should desire to sell……the shareholders shall not assign, transfer, encumber, or in any manner dispose of any of all of the shares of the corporation that may now or hereafter be held or owned by them, and no such shares shall be transferable unless and until such shares have first been offered to the corporation.”
Wait, the pain is just beginning… “In the event the Corporation exercises its right of first refusal under the above clauses, the purchase price shall be payable in cash or bank check, and shall be the book value of the shares, exclusive of goodwill, as of the first notice, as determined according to generally accepted accounting principles and shall be binding upon the parties.”
In most cases the “book value” of a company net of good will is a small fraction of the true value of the company. I looked at a company recently that had a market value of approximately $10 million. Its book value using this definition was approximately $800,000. A 40% shareholder wanted to sell his shares. According to the shareholder agreement, if, after he was terminated and given his bid from the oppressive shareholder of $500,000, he sought to sell his shares to an outside party, he would have triggered the Right of First Refusal clause. The result would have been a mandatory sale to the Corporation at a value of 40% of $800,000 or $320,000. This is not even close to the fair value of the company multiplied by his shareholder percentage.
Unfortunately, traditional legal remedies are inadequate to help these minority shareholders. Their attorneys are left with going after a wrongful termination lawsuit. Those end up being a frustrating and ineffective attempt to extract some measure of relief from this pain they are experiencing. The poor client will find it hard to win, he will spend the entire amount of a potential settlement on legal fees and most importantly, he is focusing on the lowest potential reward. His prize is in his stock. MidMarket Capital has worked with several clients in this area and has identified a number of successful strategies that are designed to achieve meaningful exits without legal conflict.
By: Dave Kauppi
Posted in Investing | Tags: 10 Million, 5 Million, Clauses, Encumber, First Refusal, Harsh Reality, Inquiries, Investment Banking Firm, Irs Revenue, Letter Of Intent, Marketability Discount, Maximum Discounts, Minority Interest, Minority Interests, Minority Shareholder, Minority Shareholders, Punch, Shareholder Agreement, Shareholder Agreements, Steep Discounts | No Comments »
How to Find Real Estate Deals That Are Under Market Value by Networking
Every successful investor has a passion for their business and can’t wait to talk to people about it. However, there has to be a system to your efforts in order to maximize positive response. So what is network marketing, anyway? Network marketing is establishing business relationships for purposes beyond the reason of the initial contact. These relationships can lead to more business either directly or indirectly through a referral. Networking is a very proactive form of marketing. It takes a daily commitment to establish and keep relationships alive. It’s not any different from your personal life. You must continually work on relationships in order to make them successful. The biggest mistake that investors make is focusing on themselves and their own needs first, but if you remember that helping someone else is the surest path to helping yourself, you are bound to get lots of benefits from networking with various groups of people.
Finding Real Estate Deals Tip #1: Understanding Why Investors Need To Network Market
Networking is one of the most essential parts of a well-crafted marketing campaign. The reason networking can be such an effective avenue is because people you deal with can associate the business with a face and a personality. This is where your individual charisma makes all the difference in the world. People like to work with individuals they know and like. Therefore, let your best qualities shine and establish a level of trust. The primary way to accomplish this is by showing sincere interest in people – who they are, and what they do. The overall goal of networking is to promote the business and to educate the widest possible audience on services offered by your company. Broader exposure often leads to new opportunities, prospective clients and new ideas and there’s no better way to achieve this goal than through networking.
Networking opportunities are truly endless and only limited by your imagination and the willingness to interact with people around you. There is virtually no one you come in contact with that you shouldn’t make aware of what you do and what services you have to offer. One of the great aspects about real estate investing is that it naturally relates across all types of social, economic and professional backgrounds. Shelter is one of the core human needs, so you should have no trouble initiating a conversation about real estate and finding a common ground for a conversation. Whether it’s a prospective home buyer, seller, renter, real estate investor, or a private lender, you should let them all know what business you are in and how you may be of service to them. All these contacts are a valuable asset to your business, and if you take advantage of opportunities that present themselves from networking, they can also become a significant source of revenue for your business. You will find that in most instances you are offering a service which is sought after among the people in your close social circles.
Finding Real Estate Deals Tip #2: The Best Places To Start Networking
The first place to start networking is your local Real Estate Investors Association. At your local REIA you will find dozens if not hundreds of like minded investors all with different experience levels. This is your market whether you are looking to buy or sell. We have wholesaled dozens of properties to people we met at our local REIA in Connecticut. Likewise, we have bought dozens of properties from people we have met at the monthly meetings.
Another good place to network is your local home builders association and apartment owners association. The home builders association is a different type of association whose membership usually consists of builders and suppliers. These relationships will be very valuable in case you get into land development or serious remodeling work. Local landlord associations can also be very valuable and a great source of wholesale buyers for your multi-unit properties.
There are also events specifically organized for purposes of networking. They are an excellent avenue of meeting other professionals that work in real estate and non real estate related fields. It’s a very efficient way of establishing new relationships, because everyone has the same agenda, which is to make most possible contacts that can benefit their business. It’s like going to a singles bar, where everyone is there to mingle. This eliminates any awkwardness about getting right down to business. You will meet many people who will be valuable assets to your marketing campaigns. At various networking events, We have met ad agency reps, media buyers, printers, and a lot of private lenders.
Finding Real Estate Deals Tip #3: How To Network Effectively
Don’t skip this portion of the course thinking it is not important and that you already know how to meet people and network effectively, but this isn’t an area you want to overlook. Becoming a charismatic person that people like and want to do business with is not easy for everyone. It’s something that takes effort and practice.
Building rapport quickly is something you must do when you are networking. First, find out as much about the other person as you can and let them do most of the initial talking. Next, ask them open ended questions to get them talking. People love to talk about themselves. It’s funny, but the more you listen, the more people will like and respect you. After finding out as much as possible about them, you will usually give them a little 2-3 minute talk about your business and how it can be of service to them. People always want to know how you can help them so let them know. If you take initiative and introduce them to someone they would like to know or you help them in some way they will forever be grateful to you. Whenever you take time to help a new investor, you’ll find that the generosity will be returned to be many times over in deals they will bring to you.
Another important thing to remember is to not try and network with the whole room. When you attend a networking event you should try to connect with only 3 or 4 new people and find a reason for following up with them. It’s the follow-up component that usually leads to opportunities for you as a real estate investor.
One of the best things you can do is read “How to Win Friends and Influence People” by Dale Carnegie. This is the best book you can read on influencing others through the power of effective communication.
By: Than Merrill
Posted in Real Estate | Tags: Best Qualities, Biggest Mistake, Business Relationships, Charisma, Estate Deals, Investor, Investors, Marketing Campaign, Network Marketing, Networking Groups, Networking Opportunities, New Opportunities, Passion, People Finding, Personal Life, Personality, Prospective Clients, Referral, Talk To People, Widest Possible Audience | No Comments »
Market Your Home Like A Pro
Professional advertisers tend to pull in excellent salaries due to the fact that they know how to sell anything. When it comes to selling your own home, start thinking like a pro.
Marketing is the key to selling your own home, and whether you work for a multi billion dollar advertising agency, or whether you simply want to sell your home, the tricks of the trade remain the same.
By now, you have probably heard all about posting flyers all across your town and placing a few signs upon your lawn, but there are some other advertising tactics that you may not have thought about yet. Sometimes, selling your home can border on the obsessive when it comes to marketing and advertising, but know this – those that go to all extents to market their home often come out on top. If you want to sell your home for the price that you have in mind, keep reading.
Let’s start with the internet. There are MLS listings and other paid services that are certainly worth your time, and then there are those websites that many people don’t seem to think about when selling their home. Free sites such as Craigslist, Backpage, and MyFizbo are all excellent ways to begin marketing your home. Posting on any of the above sites is easy and self explanatory, and in most cases listing your home will only take a few moments of your time.
Websites are a great place to start, but there are other tricks that any superb advertiser will have up their sleeves, and that excellent advertising guru is about to be you. Head to your local office store and order a set of business cards with all your home information listed on them. Once your business cards are all ready to go, take the habit of putting a card inside of every piece of mail that you send out. The idea here is to generate “word of mouth,” which is also known as “priceless, free, advertising.” Love the idea of creating your own business cards? Just wait – there are a few more, excellent, attention grabbing tips coming up.
The next thing that you will need to do is to become an email pro. Use your email in the same way that you would use the post, and start to send out weekly email flyers. Think about all those people that you have emailed over the years – how many of them are looking for a home right now? Advertising is the key to selling your home, and though it may seem frustrating at times do not give up. Keep on thinking of new and inventive ways to sell your home, and you will have more potential buyers than you can handle in no time at all.
By: Raynor James
Posted in Real Estate | Tags: Advertiser, Advertising Agency, Backpage, Business Cards, Creating Your Own Business, Extents, Few Moments, Flyers, Free Advertising, Guru, Habit, How To Sell Anything, Local Office, Mail, Mls Listings, Pro Marketing, Salaries, Selling Your Home, Selling Your Own Home, Word Of Mouth | No Comments »
Canon PowerShot SD780IS – The Biggest and Smallest Camera on the Market
Overview
The biggest value in digital cameras on the market is the smallest camera ever made, the Canon PowerShot SD780IS. Smaller than an average wallet, the approximate height and width of a credit card (though.7 inches thick), this camera slips easily into a shirt pocket.
The tiny Canon PowerShot SD780IS Digital ELPH, nevertheless, packs an impressive array of cutting edge features while remaining easy enough to use for complete beginners.
Not only can you quickly take continuous still shots, it also provides high definition video recording, video clip editing, image stabilization on stills and video, blink detection, extremely quick startup, an easy-to-read LCD screen and a scene detection mode.
First Things First – Using the Canon PowerShot SD780IS
Your pictures will consistently turn out as you expect, consistently clear and in focus and the video quality is as sharp or sharper than other cameras in its class. For quick, easy, ultra-portable, everyday picture taking and HD video, the Canon PowerShot SD780IS is a joy to use.
For such a tiny camera, it performs exceedingly well in low light and the sound quality in video mode is excellent. Image stabilization provides clear images without motion blurring and the scene detection feature provides focus and clarity in nearly every shooting condition automatically. It even has a mini-HDMI output connector so you can display your images directly on your HDTV or other monitor with the appropriate cable (the HDMI cable is not included).
Who should purchase the Canon PowerShot SD780IS?
The Canon PowerShot SD780IS camera makes it about as easy as possible to take reliably sharp photos and videos in a skin so small and light you can forget you have it with you.
If you want an ultra-portable camera you can slip in your pocket or purse and then take photos with in a matter of seconds then this may well be the camera you’re looking for.
What’s Wrong With It?
Okay, nothing’s perfect. The Canon PowerShot SD780IS does have a few warts.
While some have commented that the sound quality when recording video is excellent for a recorder this small, others have complained it sounds a little monotone. This might have a lot to do with background noise, number of people talking, the types of sounds being recorded and distance from the camera.
Another limitation of the Canon PowerShot SD780IS typically cited is that you can’t use the optical zoom when you’re recording video. You can use digital zoom only.
Another drawback of such a miniaturized camera system is that you’re limited to an optical zoom of only 3x. I thought I was going to miss the 12x of my larger camera but in actual use I rarely think of it. There are, of course, some distance shots I don’t even think to try with it, but it doesn’t seem to bother me as most of the pictures I take don’t require a powerful zoom.
The view finder, though usable, is tiny. Some find this annoying. Others are impressed Canon managed to squeeze in an optical view finder at all.
Some users complain about noise or graininess at ISO’s higher than ISO400 but it doesn’t seem noticeably worse than most other compact cameras.
Probably the biggest thing to watch out for with the Canon PowerShot SD780IS, or any sophisticated electronic technology for that matter, is that you don’t get a “lemon”. A few people have purchased cameras that didn’t work right from day one, or after a few months’ use. Make sure to purchase from reputable suppliers in case you’re one of the few to experience this problem.
What’s so Good About It?
The Canon PowerShot SD780IS has an amazing number of features in an exceptionally small package at a very affordable price. You can record beautiful high definition video and play your movies and still photos on your HDTV using the mini-HDMI connector and the images will look great even on a big screen.
The Canon PowerShot SD780IS will select the proper settings automatically when using the smart auto mode and will also detect faces. In fact, there’s a face detection self-timer so you can step into the frame before the picture shoots and it will wait until it detects your face before snapping the shot.
Conclusion
If you’re looking for a tiny portable camera that allows you to shoot consistently sharp photos quickly, plus HD video at 720p resolution with an HDMI output connector… this is the camera for you.
By: Frank Gaines
Posted in Shopping And Product Reviews | Tags: Approximate Height, Canon Elph, Canon Powershot, Digital Cameras, Digital Elph, Edge Features, Hdmi Cable, High Definition, Image Stabilization, Impressive Array, Market Overview, Output Connector, Perf, Smallest Camera, Sound Quality, Tiny Camera, Video Blink, Video Mode, Video Quality, Video Recording | No Comments »
Negative Equity – Solutions For Homeowners
What is negative equity?
Negative equity is the term commonly used to describe the situation of having a home that is worth less than your mortgage. The Quarterly Bulletin from the Bank of England has revealed that around 7%-11% of UK homeowners with a mortgage were in negative equity in the first three months of this year, owing more to their lender than their home was worth.
This works out to between 700,000 and 1.1 million householders in negative equity
Solutions
Help from your lender
ï,§ Contact your lender and ask if there are any new mortgage products to help with negative equity on your current home but which can be incorporated into a new mortgage product in the home you wish to move to. Some lenders may have packages for their existing borrowers but usually only if you have a good payment record. This is not necessarily a cheap option as the interest rate may be higher with the new product and there is likely to be an Arrangement Fee. Sustainability of maintaining mortgage payments on your new home needs careful consideration – payments will be higher than normal due to the extra mortgage from initial property being included.
Note: You will need to pay solicitors, estate agent fees and the costs of moving.
ï,§ Some lenders may agree to accept less than the full amount of the shortfall debt by securing part of the debt on a new property as part of your mortgage and writing off the rest.
ï,§ Some schemes ask for a guarantor on the new loan (such as a relative) and may want the loan secured on their home as well as your own. Be very careful, the Guarantor’s house would be at risk if you cannot make the payments.
ï,§ You may be able to clear the negative equity by obtaining an unsecured loan from your bank or building society. This will probably be more expensive than a secured loan because a higher rate of interest is usually charged, but an unsecured loan does not put your new house at risk. The loan may also be over a shorter period which would mean the monthly payments are likely to be higher.
ï,§ A limited number of lenders may run schemes that offer assistance to all borrowers. So you can apply even if your mortgage is with a different lender. Shop around high street banks and building societies and check with a good mortgage broker
Renting out your home
ï,§ Another option is renting out your house with your lender’s permission. Some lenders add an extra percentage on to the mortgage interest rate for allowing you to rent out the property. You could ask them to waive this if it will cause you hardship. You also need to ensure your buildings and contents insurance is adequate and is designed for a let property.
Note: You will need to cover Tenant Finding Fees, Management Fees, Gas & Electric Tests, all Maintenance and Mortgage Payments (even when the property is empty)
Selling your home
ï,§ The Mortgage Conduct of Business Rules say that a lender must “deal fairly” with anyone in arrears. It also says the lender must: “give consideration to the customer being allowed to remain in possession to effect a sale”. This means that if you cannot afford to stay in the house, the lender must look seriously at allowing you to sell the house yourself whilst you are still living there.
ï,§ Talk to your lender about selling your home yourself. Homeowners in this situation have no choice but to try and sell at full market value as they often cannot afford to negotiate on sale price as they have to cover the redemption mortgage costs, legals and estate agency fees associated with selling the property. This can often reduce the chance of a sale on the open market as quite often prospective purchasers will make ‘offers’ on a property below the asking price.
ï,§ You may have to prove to your lender that a sale is the last resort and the sale is in everyone’s financial interest.
ï,§ Provide your lender with full information about your financial circumstances.
ï,§ You will need evidence from several independent estate agents that you have found the best sale price for your home.
ï,§ The lender may ask you to sign an extra agreement saying how you will repay the shortfall debt.
ï,§ Consider handing the keys in and making an arrangement to clear the shortfall once the house is sold by your lender:-
a) This is only an option if you do not want a new mortgage in the near future as your details will be on the Mortgage Possessions Register for six years.
b) You could also face potential problems if you need rehousing by the council as they could treat you as having made yourself homeless voluntarily.
Note: You will still be liable for the regular mortgage payments until the house is sold. You will also be liable for interest charges, costs for estate agents, legal fees, repairs and insuring the building.
Personal Loan
ï,§ Borrow the amount needed to clear the shortfall from another source such as a personal loan, savings or from a friend/relative.
Existing Insurance Policies
ï,§ If you have an endowment mortgage you could check with an independent financial adviser to see if the value of the endowment could be off-set against the negative equity. If you have the means, payments on an endowment policy or other investment scheme could be increased to build up enough cover to pay off the negative equity when the house is sold.
ï,§ Get legal advice about the terms of any Mortgage Indemnity Insurance policy you may have on the mortgage.
ï,§ If you have an endowment mortgage it may be worth discussing with your lender the implications of swapping to a repayment mortgage. The advantage of doing this is that with a repayment mortgage you would be paying part capital and part interest every month. This would mean you actually reduce the balance you owe on the mortgage over time and therefore reduce your negative equity.
ï,§ If you have the means, payments on an endowment policy or other investment scheme could be increased to build up enough cover to pay off the negative equity when the house is sold. You could check the surrender terms of any investments you already have. Have any policy valued both by the insurance company and second hand policy brokers
ï,§ Be very careful to get independent financial advice when considering changing from an endowment to a repayment mortgage. You may lose out on payments you have made on your endowment if you surrender the policy early on, as it may not be worth as much as you have paid in.
ï,§ It is also possible with a repayment mortgage to make extra lump sum payments off the mortgage which reduce the balance owing. You have to be careful that the lender accepts the payments off the capital balance and not just as advance payments off your monthly instalments. Check this with your lender.
ï,§ If you want to move because you need more space, look at whether you can convert your loft or build an extension. In this way you may be able to stay in your home until house prices improve.
What can I do if my lender is unhelpful?
ï,§ If your lender is unhelpful you could consider making a complaint to their head office. In some cases, the Financial Ombudsman Service has taken up complaints for borrowers. An example of this is if a lender has refused permission for you to sell the property for an offer that is less than the mortgage, but then they have gone on to sell the house themselves for a lot less after repossession.
ï,§ From October 31st 2004 the Financial Services Authority (FSA) has taken over the regulation of mortgage lending and problems with existing mortgages. This applies to all mortgages where the lender had a first charge over the property and at least 40% of the property is occupied by you and/or your immediate family. It does not apply to secured loans regulated by the Consumer Credit Act.
ï,§ Note: The FSA does not regulate Buy to Let Mortgages and as such lenders of Buy to Let Mortgages may not be as compliant to providing alternative financial arrangements to faciliate their clients in negative equity.
Sell Direct to an Investor or Property Buying Company
An Investor or Property Buying Company can arrange to take over the Mortgage on a property in negative equity. The reason this can be done is that the legal contracts stipulate an agreed Sale Price within a specific timescale sometime in the future. This enables the Property Buying Company or Investor to take on the property as a long term investment. The risk involved could be that the property stagnates or decreases in value over the long term but generally the risk is minimal as the property is likely to increase in value over time. All financial commitments pertaining to the property become the responsibility of the Property Buying Company or Investor and eliminates the worry of future house price movements. The benefits to the Homeowner are:
ï,§ they are free from any future financial obligations regarding the property
ï,§ they can leave the property and either rent or buy another property
ï,§ it provides an immediate solution without the traditional costs of selling the property, as many of the Property Buying Companies/Investors do not charge commission as an estate agent would
ï,§ a secure offer is made on your property and the transaction is generally completed within 6 weeks. Once it reaches a positive equity situation, the house purchase transaction is completed.
Useful Addresses
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR,
Tel: 0845 080 1800
http://www.financial-ombudsman.org.uk
Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Tel: 0845 606 1234
http://www.fsa.gov.uk
By: Sandra Ridgwell
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