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Home Loans In The US

wealthymattersHome loans are one of the most common types of loans in the United States today.The US has many home loan options which make home ownership and investing in residential properties easy.In addition to the conventional fixed rate and adjustable rate mortgages found world-wide,there are VA Loans,FHA Insured loans and HomePath Mortgages that offer simpler and cheaper ways to purchase residential properties.

Lately refinancing has become a particularly popular option for homeowners in the US, struggling in the face of the economic recession, which has in part caused home pricing to rise despite poor sales in the real estate market. Refinancing helps  lower mortgage payments and allow a person to stay in their home after a financial setback.Refinancing is also an option exercised by savvy real estate investors who want to take advantage of the historically low interest rates in the US and use the bank’s money to grow rich.

When the mortgage balance exceeds the current property value we have an “underwater” mortgage. Refinancing options on such properties are limited because most lenders require some equity in the property ,ideally about 20 percent.However, borrowers can avail of the US government’s Making Home Affordable program(HARP) instead of going for a Short Sale.This program allows qualified borrowers to refinance a loan that is from 105% to as high as 125% of a home’s value.To qualify for HARP,a person must not be on the road to foreclosure.Any delinquent payments in the past 12 months will automatically disqualify a person from eligibility.Second, either Fannie Mae or Freddie Mac must own the loan. Read more of this post

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The Importance Of Capital Gains


Ths IRS releases a list of the 400 highest returns filed in the US.They are known as the Fortunate 400.So how do they get there?-Their money works for them.

The Fortunate 400 make as much as half of their incomes (in blue) from investments, and their household incomes have swung very similarly to the S&P 500 (in red) over the past 100 years.The S&P 500 is a broad mix of 500 stocks across multiple sectors, it is a much more accurate gauge of market sentiment than the more well-known Dow Jones Industrial Average – which tracks only 30 stocks.At the very top of the economy, the 400 richest tax returns analyzed by the IRS take home about 50 percent of their income from capital gains i.e they sell at the top of the market.Capital gains are income earned through investments, and they have shot up 1,300 per cent since 1992.

So are there any repeat names on the list ?-73% of the people make it to this list just once.Only four households appeared every year in the last 2 decades.So who are they?Your guess is as good as mine.For privacy reasons the IRS doesn’t publish these names.

US Wealth Distribution



The bottom nine-tenths of the 1 Percent club have about the same slice of the national wealth pie that they had a generation ago. The gains have accrued almost exclusively to the top tenth of 1 Percenters. The richest 0.1 percent of the American population has rebuilt its share of wealth back to where it was in the Roaring Twenties. And the richest 0.01 percent’s share has grown even more rapidly, quadrupling since the eve of the Reagan Revolution.

So where do they have their money?In real estate and bonds.So don’t underestimate their relevance to the wealthy.

The Hindu Succession (Amendment) Act, 2005

wealthymattersThis Act was passed to address the inequalities in succession to agricultural land, Mitakshara joint family property, parental dwelling house and certain widow’s rights.

One of the most significant amendments in the Hindu Succession (Amendment) Act, 2005 is the deletion of the gender discriminatory Section 4 (2) of the 1956 HSA. Section 4(2) exempted from the purview of the HSA significant interests in agricultural land, the inheritance of which was subject to the devolution rules specified in State-level tenurial laws.In States where these laws were silent on inheritance, the HSA applied by default, as also where the tenurial laws explicitly mention the HSA. But, in Delhi, Haryana, Himachal Pradesh, Punjab, Jammu and Kashmir and Uttar Pradesh, the tenurial laws specified inheritance rules that were highly gender unequal. Primacy was given to male lineal descendants in the male line of descent and women came very low in the order of heirs.Also, women got only a limited estate and lost the land on remarriage.Moreover, in U.P. and Delhi, a “tenant” is defined so broadly that these inequalities effectively covered all agricultural land. U.P. alone has 1/6 of India’s population. This clause thus negatively affected innumerable women farmers.The 2005 Act brings all agricultural land on par with other property and makes Hindu women’s inheritance rights in land legally equal to men’s across States, overriding any inconsistent State laws. This can benefit millions of women dependent on agriculture for survival. Read more of this post

Kamal Khetan’s Way

wealthymattersIn 2007, when the MMRDA invited bids for its plots in the Bandra-Kurla Complex (BKC), Sunteck was the only company that opted for residential plots – all others bid for plots to build commercial projects.

Here’s how Kemal Khetan explains his action:“My observation was that in any business district, the residential segment always commands premium over commercial, whether it’s Manhattan, Hong Kong or NCPA in Mumbai.” 

One of the BKC plots which he bought for 140 crores in 2007 and converted into a residential project, Signature Island, is valued at 1,000 crores by analysts. He has two more similar projects at BKC, each valued around  700 crores. About 65% of the inventory is already sold – buyers include former Citigroup chief executive Vikram Pandit, industrialist Gautum Adani and investment banker Nimesh Kampani – and the remaining is held by the company as it believes the premium will go higher once the projects are completed.

Kamal Khetan is very smart in land acquisition. His land cost to total sales is one of the lowest among Mumbai realtors.He has never gone for trophy properties but has still managed to create high luxury projects.

Be Beautiful

wealthymattersIn a perfect world, we’d all be judged on the sweetness of our souls. But in our less than perfect world, the woman who looks pretty has a distinct advantage and, usually, the last word.

You may have great inner resources, but they don’t show up as confidence when you don’t feel pretty.

People are more apt to believe you and like you when you know you look fine. And when the world approves, self-respect is just a little easier

Beauty is an attitude…….There are no ugly women – only women who don’t care or who don’t believe they’re attractive.

-Estee Lauder

Work On Your Looks!

I Seek Friendships

wealthymatters I seek friendships. Very early on in life, I understood that people need people and that’s the only way to survive this world. I invest in my relationships.-Karan Johar

Food Co-Ops: Separating Facts From Fiction

wealthymattersFood co-ops provide various benefits to the community. It creates a place for people to obtain fresh and healthy produce and products created by local businesses. Food co-ops give individuals and family a better alternative to big corporations, and allow you to support independent small businesses in your community. Despite all these benefits, food co-ops, unfortunately, have a cloud of misconceptions surrounding them. These inaccuracies can turn away potential co-op shoppers. Knowing the difference between the facts and myths of food co-ops will help you make an informed decision on your family’s shopping choices.

Myth #1: You must be a member in order to shop at food co-ops.
Fact: You don’t have to be a member in order to visit or shop at a food co-op. In fact, you can shop at the co-op as you would any other store. Once you see for yourself the benefits, you may be interested in finding out more about their membership.

Myth #2: Only hippies, vegetarians and the like shop at food co-ops.
Fact: Everyone, no matter what their political standing, social status or food preference, is welcome at food co-ops. Read more of this post

Why Go Private?

wealthymattersBeing the promoter of a public company is seen as prestigious.So why do promoters sometimes opt to make their company private again?The simple answer is often the possibility of Private Gains.Public share holders and promoters often have vastly different perspectives on making money,vastly different time horizons when it comes to harvesting gains,vastly different risk perceptions and holding power.Here is an example:

In early ’13,Dell had  a total market cap of about $22 billion.  They also had about $11 billion in cash, which meant the stock market was valuing the entire business at $11 billion ($22 – 11).  The company had a price-to-earnings multiple of about 8.5.

So the situation was that, if Michael Dell and private equity investors put in $2 bilion, used the cash on the company’s books and borrowed the remaining $9 billion, they could control the entire company without the hassle of having public shareholders.

The flexibility of not having public shareholders would enable Michael to do what has needed to be done for years, and that is massively streamline the company’s manufacturing and sales forces (probably through layoffs), re-focus the core PC business, grow the enterprise and consulting businesses, and make the company generally more Lenovo-like or IBM-like. Read more of this post

Life Of A Social-Media Influencer

wealthymatters9:49 a.m  Tweets “just woke up”. Googles a hangover cure.

10:05  a.m Checks Twitter, Facebook, Google+, Email. Reads  online newspapers and blogs to check last night party photos. Sends the editor an email request to removing a photo where “the influencer” looked too fat.

10:35 a.m Tweets about how beautiful “the influencer” is today.  Uploads a picture herself  on Instagram. Checks in “the influencer’s fabulous office”  on Foursquare…..[Incase anyone forgot how important she is].

10:45 a.m  Reads a frienemy’s blog and finds out ABC PR agency did not invite the influence to a party. Breaks a vase and tweets ” _____ party is just for influencer-wanna-be”

10:46 a.m Checks Twitter

10:47 a.m Checks Twitter

10:48 a.m Checks Twitter

10:50  a.m Writes a blog post about last night’s party. Read more of this post


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