February 18, 2010

Just Because You Can Buy a House Doesn't Mean You
Should... Home-Based Business; Will Your City Allow It?...
As Tax Season Approaches, Beware Fraud... Take a Trip for
Info Marketing Success... and More.

The Canadian housing market is hot right now. So hot, that on Tuesday the government put in place tougher rules for those looking to get a mortgage.

The biggest regulation is that all borrowers must qualify for a five-year fixed mortgage rate, no matter what term or type of rate their mortgage is.

The purpose of the new regulations, which will come into effect in April, is to make sure that a borrower can afford to pay their mortgage even if interest rates shoot up, which, by the way, they are expected to do in the near future.

Those south of the border know all about this kind of housing crisis. Those who took advantage of a real estate bubble were getting Adjustable Rate Mortgages (ARMs) and then paying the price of foreclosure when they could no longer pay their mortgage.

So this begs the question: if you have the resources to buy a house, should you?

It was very attractive back in the day when a person could buy a home with nothing down at a low interest rate, with a 40-year amortization. Heck, you could even roll your closing costs and any renovation costs into your mortgage, resulting in 105% mortgages.

A lot of people who took advantage of that are now left with boatloads of debt, missed mortgage payments and threat of foreclosure, if it hasn't happened already.

And that's why these new Canadian laws are probably a good idea, because, whether you like it or not, you might not be qualified to own a home.

Heck, I'm going to get personal here for a second and tell you about my brother who is one of those people who rents simply because he knows he can't afford the long-term risk of a mortgage right now.

He has consolidated credit card debt and has a good job. But he also has a nice apartment that has affordable rent. And even though he hasn't gone to a financial planner, he's looked at the numbers and knows that, although he can afford to purchase some real estate right now, he's better off paying off his consolidated debt before venturing into the real estate market.

And that's a responsible way to look at it.

Even good investments, like real estate, can only be realized if you can afford the initial costs and the risks. Take some time to see if buying real estate, even income properties, which can be lucrative but also very risky, is something that you can afford long-term.

In Canada, it looks like the government will be the judge of that.

As the unemployment rate remains high, many laid-off workers are finding new jobs that require very short commutes. In fact, in some cases there's no commute at all, as during hard times many people start home-based businesses.

Amateur mechanics may start fixing their neighbor's cars. Laid-off hair stylists may start cutting and dyeing hair in their basement. Yet, zoning by-laws in many cities may pose a challenge to would-be entrepreneurs.

Typically, what you do in your home is your own business. However, zoning by-laws were created to ensure that dangerous and noisy businesses won't pop up in your backyard. No one wants their neighbor to start a leather tanning business in their backyard. But, many people may not mind if you start selling plastic food containers from your living room. Yet, by- laws could make a quiet, home-based business illegal.

"The Wall Street Journal" recently published an article about how a home-based beauty salon violates these by-laws. The reason is that running a business from your home isn't illegal, but if you have customers coming to you, then you're violating the by-law.

Of course, no one at City Hall wants their townspeople left unable to make money, so changes are slowly being made to allow for temporary home-based businesses to exist and be exempt from the by-law.

Should you run a home-based business, be sure to check with the city to see if there are any restrictions on what you can and cannot do from your home. Restrictions can include how you store physical products or whether or not you can have customers visit you at your home.

As tax season approaches for all of us, scam season approaches as well. Be careful this tax season, as scammers may try to steal your hard-earned money. Today, I'll cover some popular scams and, on Wednesday, I'll write about how you can defend yourself.

The most popular of these new scams comes at you through the telephone wires. Victims receive a phone call from a person claiming to be a representative of the IRS, and that you, the taxpayer, have failed to cash a rebate check. They will then inform you that they must run a check on your bank history and they will rectify the situation using direct deposit.

It's likely they will tell you your rebate was lost in the mail and that they will deposit the correct amount in your bank account using direct deposit, asking you to supply them with all of your banking information. If this happens, you need to know that it is a scam. The IRS never uses direct deposit and would never acquire such information over the phone.

A similar scam involves being called up and asked for your bank account information, while being told that your rebate will be issued through direct deposit. They'll say that, because of new tax initiatives, they're trying to get people their rebates as quickly as possible. Do not, under any circumstances, supply your banking information; you'll be giving the criminal on the other end total access to everything in your bank account.

The next scam, brought about by the announcement of an economic stimulus package, has seen victims receive e-mail notifications that claim to be from the IRS. Now, don't be fooled; they probably look like they're safe with a seemingly official address, but they aren't.

These e-mails will ask you to enter all your personal and banking information, saying it is required in order for you to receive your tax rebate. If you fill it out, the moment you click "send," you'll be disclosing all your personal and banking information, making you a likely victim of robbery and identity theft. If you receive one of these e-mails, know this: the IRS will never ask you for that kind of information online. If you think it looks authentic and are convinced that perhaps the IRS has changed their policies, then visit the IRS web site at www.irs.gov, call to inquire at (800) 829-1040, or locate your local IRS office.

Another scam going around is also being carried out electronically. It involves the victim receiving notification that their tax return is up for an audit, and they are consequently asked to follow the supplied links to complete the appropriate forms. Well, if you decide to follow the links and complete the forms, you'll notice that the forms are asking for personal banking and account information. This is a dead giveaway that you're dealing with a scam and you should exit the page as soon as possible. Once again, the IRS will not ask for this information -- especially in an e-mail -- so don't play around with it even if you think it looks legit.

Individuals aren't the only people out there who are at risk of being taken advantage of by scam artists, as businesses and accountants have also been coming under fire. Much like the e- mails listed above, accountants and other businesses have been receiving e-mails containing instructions to download new information regarding changes in tax laws. By clicking these links, you run the risk of downloading malware (software designed to infiltrate a computer system without the knowledge or consent of the owner) that gives the scammer access to your computer's hard drive and all the information held in it.

** Take a Trip for Info Marketing Success
By James Burt, Online Marketing Expert

Good info marketing pretty much starts with your source. This is the subject or subjects that you are most interested in and can provide like-minded clients with all related information about. It's what drives you to create your content and demand the green to provide it to your customers.

I am a believer of creating content for just whatever subject you enjoy. But it is true: some sources of info marketing are pretty exclusive. Information on caviar and 78 RPM records is good, but only for a limited audience interested in those things.

But some are just plain universal -- the sources that people always need information on. Automobiles, computer technology, and a healthy lifestyle are all topics for information a lot of people use daily.

One info source that I have seen marketers use time and again is the subject of travel. Vacations are part of our lives...we need them. But when people are working, taking care of their families, and contending with all of life's other issues, getting around to taking one can be pretty tough.

But that can be a good thing, especially if you are an info marketer. People will often go online or subscribe to a newsletter to get the best travel info they can. They will make their plans based around the information they receive.

That's where you come in.

If you want to make travel your info marketing source, here are things you should consider in your work:

--- Where and when: Time plays a huge factor in travel info marketing. If people have a family and work, they have to make plans ahead of time. That and they also consider the seasons. Most vacation time takes place either in the mid year -- June to August -- or around the Christmas holidays. As an info marketer, these two components can help you. You can provide booking information, who offers special tickets at what time of the year, and what places are the best to go to. Keep watch on weather information in certain places as well. Going to the Caribbean is fun, but being caught in a hurricane while there is not. People will want the info to avoid this.

--- Rates: Why is it cheaper for me to fly to Northern Europe than to the Pacific Northwest? Don't know? I don't either. But I would love to find out. Airline ticket rates are kind of like the tides -- they go up and down, often at fixed periods of the year. Know something about this or are willing to investigate how this works and when good times to book specific tickets are? Believe me when I assure you that it will be a profitable info marketing source, all of the time!

--- Health and politics: I like going just about anywhere. I've worked in Asia and spent lots of time in South America. My dream would be to go to parts of the African West Coast like Liberia or Sierra Leone. The only thing holding me back is that, well, I don't think it's in my best interests right now. The political issues there are a little less than stable and I don't know if I could get the help I needed if I got sick while I was there. But I am hoping for changes. With that in mind, people need to know this stuff before they go anywhere that looks appealing. Is the water safe to drink? Should children come? Is the country safe? If "yes but no", what are some areas to avoid? This is valuable information to all vacationers and you are sitting on a golden ticket if you know anything about it, anywhere in the world.

--- Food, fun, and the roof over your head: People are going on vacation to have fun and enjoy their lives away from work and everyday matters. They want to know what is available to them and that they don't have to worry about having regular meals or a roof over their head in the process. Resorts, restaurants, activities, national sites, museums...this stuff is what people want to know. It's something worth creating info products for. A golden holiday for a working pro is gold in your pocket as an info marketer!

When I said vacations were "necessary" above, I wasn't kidding. Even the most die-hard workaholics need to get away and let themselves relax. While the world is very accessible these days, there are so many options to consider for just getting away on a small trip. But as a travel info marketer, you hold the key to those options and people will want the knowledge you have. Now, if you'll excuse me, I am going to book a vacation now. Got any info for me...?