Sunday, November 30, 2008

New Rules For Investment Trusts In UK


The UK Government is set to tighten up the rules for real estate investment trusts (REITs), to keep out property-rich businesses - such as pubs - which do not generate at least 75 per cent of their gross income from renting property out to third party tenants...

New legislation will appear in the Finance Bill 2009. This is apparently a response to structuring which might allow businesses who should not qualify for the exemption available to Reits to become one.

The Government has made it clear that it will consult with the industry on the changes to ensure that they do not create any unintended consequences for existing firms.

Peter Cosmetatos, British Property Federation (BPF) Director for Finance and Investment, said, "While we will of course have to consult our members about this announcement, it seems consistent with the original aims behind the introduction of Reits.

"Clearly, it will be critical that the way in which the Government legislates to tighten up the rules has no adverse impact on the existing Reits. Getting this wrong could damage the longer term prospects of the UK's Reit sector, which is coping with very challenging economic conditions as it is.

AIG Investment Property

Report from New York:

"Acquiring investment property is based purely on how it’s defined--the investment and the income," Michael Fasano, regional manager for Marcus & Millichap in Elmwood Park, NJ, tells "In large part, how you buy those assets is leveraging a mortgage or financing, and as interest rates have climbed and underwriting requirements spread, bank requirements have changed and it’s put a lot of pressure on pricing.

"That said, as the constraints and the lending environment have evolved over the past 13 to 14 months, pricing has come down," Fasano says. "Apartment properties continue to trade, albeit at a slower pace and at slightly lower prices than a few quarters ago. Apartment fundamentals in New Jersey will soften in the months ahead, but remain strong relative to other areas of the country."

"If AIG were to put them all on the market on an individual basis, there would be great activity," Hammer says. "At the moment, there are very few buildings on the market where the sellers’ prices are realistic. New Jersey apartments have a wide range of asking prices. North Jersey could be more than $200,000 per unit for really nice buildings, but much less in Camden, Salem, Burlington and other counties."

Hammer adds, "The sale would have a very positive impact on New Jersey, but only if AIG were to sell at prices that made sense."

Investment Property In New Zealand


"We're witnessing a number of new investors coming into the market at present, some of whom are moving out of equities. With fixed-deposit rates moving down, we're also starting to see investors moving money out of the banks back into investment property."

Bayley says transactions are still being concluded in the middle segment of the market between $1 million and $10 million, but activity has slowed.

"As a consequence of the reduced amounts of finance available, we are seeing a re-emergence of the trade market where properties or other assets are exchanged to help make transactions happen. A number of our senior agents are revisiting their experiences with trades in the late 80s and early 90s to keep this sector of the market ticking over."

In a recent example of a trade deal, a property in Allens Rd, East Tamaki, has been exchanged as part of the sale of a larger industrial property in Settlement Rd in Papakura that is currently occupied by Croxley Stationary, but will be vacant on settlement.

Buying Investment Property In San Diego


Alvarez, a mother of two, bought her house on Little Lake Street as an investment property with a 20 percent down payment. Six months after buying the house, Alvarez refinanced and took out a $95,000 line-of-credit, according to county records.

“We put $100,000 down. We didn't want to lose that,” said Alvarez, who defaulted on another house in May. “A lot of people are losing their down payments. Now they don't have anything. My husband and I put it into our business. We survived with that money.”

Like Alvarez, several people who pulled equity out of their Little Lake properties say they spent it on business expenses or mortgage payments. Only when prodded, and in one case reminded, did they acknowledge using the money to buy a timeshare, new cars and jewelry.

The most common response to the question of how the money was spent was: “To pay bills.” Many could not remember what those bills were for.

Bankruptcy specialists say part of what led to the housing market collapse was systemic. Lenders set themselves up for problems by not requiring buyers to prove they could afford the loans, or to provide traditional down payments.

That stripped buyers of a tangible incentive to stay in their homes. The stigma of foreclosure and damaged credit are real, but temporary.

“Twenty years ago, individuals were doing everything in their power to save their houses,” said Radmila Fulton, a bankruptcy attorney. “Now they're more willing to walk away. Why pay now when they can rent for less than their mortgage payment?”

Floria Real Estate Prices Hit Bottom?


"North Port was hurt because there was so much speculative building," said Arthur W. Broslat, land and investment property specialist with ReMax Alliance Group. "These guys had these schemes where you put down $3,000 and they built you a house. Gulfstream Construction built 500 houses like that in North Port and nobody had any intention of living in them. A mess of houses built in North Port were purely speculative."

Englewood existing home sales held value the best in Sarasota and Charlotte counties with an average selling price of $174,000 -- down only 7 percent from a year ago.

No data was available on DeSoto because its population is too small for Zillow to track.

All is not lost in North Port and other overbuilt areas. Sales of intact, foreclosed properties are red-hot and as they disappear from the market, property values are expected to stabilize, Broslat said.

"The new houses in North Port will disappear," Broslat said. "The recent foreclosures that haven't been trashed, the turn-keys you can move into in North Port, are going off the market a week or two after they've been listed. They are going off the market very quickly."

Reflecting the foreclosure trend, one-third of all Florida homes sold in the past 12 months sold for a loss, and 14.3 percent of all homeowners have negative equity, according to

Distressed sales -- foreclosures and short sales where the bank takes less than the amount owed to satisfy a mortgage -- accounted for as much as 40 percent of all real estate transactions in the third quarter, which pulled down the median sales price.

The news is not all bad. Existing home sales are trending up.

For the first quarter since year-end 2005, the Florida Association of Realtors reported existing single-family home sales were up 5 percent in the third quarter. A total of 32,203 existing Florida homes sold in the third quarter compared with 31,558 during the same period a year ago.

Finding Loans For Snagging Investment Property

Here's a view from Singapore:

Investors will find it tougher to get a bigger loan these days. Banks used to offer more than 85 per cent financing for investment properties but all of them, except DBS Bank, no longer do so, said Ms Yang.

This means buyers have to be prepared to cough up more cash for investment property buys.

Those looking at refinancing may be in for a surprise if they bought their properties in last year's booming market.

The Spring Grove unit in question was bought by a South Korean expatriate for $2.58 million or $1,442 per sq ft on a floating rate package.

He now pays 3.5 per cent interest on his 80 per cent loan and was looking to halve his interest payments by switching to a package pegged to the three- month Singapore Interbank Offered Rate, said Ms Yang.

But a check with two banks found that the valuation for his property was $2 million or $2.22 million. If he wants to refinance at these valuations, he would need to pay up to $180,000 to top up his loan, currently at $1.78 million.

Consumers seeking a loan for their property purchase should get prior approval or have more cash on hand. 'They should approach a mortgage specialist for a joint assessment if they are unsure whether they can afford the home purchase,' said OCBC's Mr Chan.

'Things are quite fluid these days so buyers should re-check their loan eligibility after one month,' said Mr Ng.

10 Tips For 1031 Exchange


The 1031 Exchange is a valuable tax deferral tool for the owners of investment real estate. A 1031 Exchange allows a taxpayer to sell an investment property and rather than paying capital gains taxes on the sale, use that money to purchase another investment property. If the IRS rules are followed and the transaction is structured properly, a 1031 Exchange can be a useful wealth building strategy.

Certain rules must be followed in the sale and transfer of the property to insure that it qualifies as a tax deferred exchange:

1. An investor can sell his investment real estate property but must use the proceeds from the sale of the ‘Relinquished Property’ to purchase a ‘like – kind’ property. Both properties must have been held for use in a trade or business.
2. The Seller must enter into a written agreement with a Qualified Intermediary (QI). The QI acts as the principal in the sale of the Relinquished Property and the purchase of the Replacement Property.
3. The Qualified Intermediary receives the proceeds from the sale of the Relinquished Property, usually placing them in a segregated account. The Seller does not touch these funds.
4. The day the sale of the Relinquished Property closes, the 45 Day Identification Period begins. There are generally no extensions to this Identification Period.
5. Replacement Property or properties must be identified in writing to the Qualified Intermediary with complete legal descriptions or addresses. For the 3 Property Rule, three properties may be identified without regard to their fair market value, although it is wise to select a property of equal or greater value than the Relinquished Property. This process must be completed within the 45 Day Identification Period.
6. The 200% Rule means that more than three properties may be selected as long as the aggregate fair market value of these Replacement Properties does not exceed 200% of the aggregate fair market value of all the exchanged properties, as of the transfer date of the Relinquished Property.
7. The 95% Rule allows any number of Replacement Properties to be selected if the fair market value of the properties actually received by the end of the exchange period is at least 95% of the aggregate fair market value of all of the identified potential Replacement Properties.
8. The Replacement Property must be identified and the exchange must be completed within 180 days from the date that the Relinquished Property closed.
9. Title to the Replacement Property must be taken in the same manner that it was held in the Relinquished Property. For example, if Joe and Mary Smith sell their investment property and implement a 1031 exchange then Joe and Mary Smith must take title to the replacement property in the same manner.

Lower Interest Rates & Investment Property

Report from The Australian newspaper:

Investors, in particular, have "no pressing reason" to get into the market, Davies says.

"It still gets down to the fact that rental yields nationally are still very low: they're still on average about 3 per cent across the country.

"While mortgage interest rates have come down recently with the RBA cutting rates, rental yields are still much lower than the cost of funding an investment property would be.

"That can't help but hurt demand from investors," he says.

Rentals have slowly improved over the last three years, rising in all capital cities, says Cameron Kusher, an analyst at property researcher RP Data.

"Over the three years to July 2008, strong rental increases have directly resulted in gross rental yield improvements," he says.

Someone who bought the median-priced house in July 2005 had an average gross yield of 4 per cent, he says. If they still own that house and are achieving current median rents, that yield has increased to 5.3 per cent.

For units, the median-priced property yielded 4.7 per cent in 2005 and is now yielding 6 per cent.

"Even in the worst-performing market, projected rental yield is achieving 5 per cent (gross) for houses (Sydney) and 5.9 per cent for units (Sydney and Melbourne).

Investing in Property Down Under

Report from The Australian:

IT is at times like these, when shares are so attractive that every expert, including the galah at the local pet shop, is screaming that we're looking at the buying opportunity of a lifetime, that I know why I love investing in property. The fact that I am a property fan does not mean I don't like shares, it's just that property is a better asset for normal people.

When people ask me for advice for nothing -- normal people won't easily pay for advice, and that is a big issue in itself -- I profile the inquisitor.

If they receive the "normal" tag -- risk-averse and a very casual, nearly disinterested party when it comes to shares and the underlying companies -- my advice is simple.

Buy a house and pay it off quickly. Your principal property can be a great investment -- it's capital gains tax-free and you can live in it, saving you rent.

I recall a retired, relatively young priest, who left the church without any super and needed a wealth-building plan.

With a lateral-thinking adviser's help, his plan was to buy a cheap home, live in it, renovate it, sell it and trade up.

Investment Property Questions


Q: I have a loan on property in Oregon and the interest rate is 7.75 percent. It is on a manufactured home on 110 acres. I have looked into refinancing, and nobody will give a better rate on the place. It is a second home that we rent out so the lenders are telling me it is an investment property.

We have very good credit and enough money to pay off the loan, which is around $60,000. We are only getting 3.5 percent interest on the money in a certificate of deposit (CD). The value of property is about $250,000.

Should we pay off this loan?

A: Great question. At this point in time, cash is king. So if you have plenty of cash (or at least enough to pay off this mortgage plus an emergency reserve), then consider paying off the loan.

But if you're earning income from the property, then having a loan helps offset the income you're receiving. The tax advantage could be worth more than the 3 percent to 4 percent you're "losing" by having the cash in a CD.

Let me explain. At this point in time, federal income taxes top out at 35 percent. Income generated from a rental property is paid at the highest marginal tax bracket. So if you can lower your income by offsetting it with expenses, you're saving quite a bit on your tax bill. If you treat the property as an investment property and take depreciation on your tax return for the property, the tax depreciation also will lower the federal income taxes you pay on the rental income from the property.

I think you'll have to take out a pencil and pad of paper and do the calculations to see whether having the loan would help your bottom line more than not having the loan, particularly when you take into account your other expenses associated with the ownership of this investment property.

If you do your own taxes, you can run any number of scenarios through your tax software. Otherwise, you may want to have a quick conversation with your tax preparer or accountant.

Most Expensive Investment Property In The UK


The most expensive streets in Britain have been revealed by a Halifax survey which shed light on the poshest investment properties in London.

The Vale in Kensington and Chelsea is the priciest residential street in England and Wales, with an average price of £4,677,500.

Next on the list of the UK’s most expensive areas is Ingram Avenue in the London borough of Barnet, with an average tag of £4,465,000.

The South was revealed to be by far and away the most expensive area of the country, with the costliest street outside of this region being Congleton Road in Alderley Edge in Cheshire, where a home typically fetches £1,684,166.

Halifax chief economist Martin Ellis said:

“Chelsea and Kensington have some of the most expensive streets in England and Wales. The Royal Borough has been a highly fashionable area to live in since the swinging sixties.

“In recent years, its prime location in central London has attracted affluent celebrities and ultra wealthy foreign businessmen helping to drive up house prices.”

Halifax used data from the land registry to compile the report, which examined transactions between 2004 and 2008.

5 Tips for Offering Your Investment Property as a ‘Vacation Rental’

By Alfred and Emily Glossbrenner

RISMEDIA, Nov. 10, 2008-You remember the news stories: People buying condos in Florida, Nevada, California, and other hot markets and “flipping” them for a fat profit before even a single spade of earth had been turned. Then everything went crazy, and hundreds of thousands of investors were stuck with new bricks-and-mortar properties that no one would buy.

Fortunately, for many, there’s a very palatable alternative: offering those properties as vacation rentals or “VRs.”

As hard as it is to believe, there may be a silver lining to the current turmoil. First, people will always take vacations. But now they’re more likely to stay on U.S. soil. Second, with their full kitchens, washer/dryer laundry rooms, swimming pools, and other amenities, vacation rentals not only offer much more space than a hotel, they are much more economical. There’s no need to ever take the family out for an expensive restaurant meal, for example.

And there’s more good news. General awareness of the vacation-rental lodging option is growing. The leading Internet VR advertising sites were set up around 1995. Ten years later, in 2005, venture capitalists raised over $200 million to buy them all up. They established a company called HomeAway, and began a major campaign to promote public awareness of the vacation-rental option.

So, how can you catch this wave and ride it to pay your mortgage and expenses while you wait for the real estate market to come back, as it always does?

Here are five tips to get you started:

Study the competition. Two of the best places to do this are HomeAway ( and VRBO ( Look at listings for VRs in your area to get an idea of what they offer and how much they charge.

Take lots of great photos of your property. Note: No people in the pix, please! Make it easy for your prospective renters to visualize themselves in the scene. And be sure to “dress the set” the way professional photographers do, with an arrangement of colorful flowers on the coffee table, or a dining table set up for a family dinner.

List your property on the leading VR advertising sites. For starters, we recommend HomeAway and VRBO, because they’re the most popular and get the most Web traffic. Total cost: less than $600 a year.

Run your VR like a business. Build a team of reliable cleaning and service people, collect and pay local and state sales tax, get set up to accept credit cards, maintain an online availability calendar, and always respond quickly to inquiries from prospective renters.

Remember: You’re in the hospitality business. Think of yourself as a host and your prospective renters as guests. With this mindset, you’re sure to be successful as a vacation-rental owner.

Australia's Investment Property Market

Despite the downturn in property values in the UK, there are still investment hotspots in the world property market. According to the experts at Australian Investment Property, Australian property has not suffered in the same way as investment properties in Europe and America. They say that property values in many desirable Australian locations are still rising.

(PRWEB) November 5, 2008 -- Despite the downturn in property values in the UK, there are still investment hotspots in the world property market. According to the experts at Australian Investment Property, Australian property has not suffered in the same way as investment properties in Europe and America. They say that property values in many desirable Australian locations are still rising.

The analysts at Australian Investment Property ( point to Noosa on the Queensland coast as an example of a typical must-have location that defies global trends. Investors who have recently bought into the Noosa property market continue to see capital growth in their investment - and excellent returns in the form of rental income.

Noosa is not the only town in Australia that continues to attract investors. There are many other desirable locations that property owners just can't keep away from. And for investors who opt for off-plan investments in Melbourne and the state of Victoria, there are generous tax breaks on stamp duty to build into the equation.

Visitors to the Australian Property Investment website will find a huge range of investment opportunities ranging from city-centre apartments in Melbourne (AU$ 500,000) to top-of-the-range designer developments on Queensland's gloriouos Sunshine Coast (AU$ 5,000,000). Many of the properties on the company's books began life on the drawing boards of cutting-edge architects such as Arkhefield, Gabriel Poole, and Owen and Vokes. These are the houses and apartments that investors with an eye to long-term growth snap up first.

For UK buyers, the Australian Property Investment website is a treasure trove of investment opportunities. Buyers who want a head start in the search for income and growth should bookmark the site. Every property on the website is available in the UK exclusively through Australian Investment Property.

Investors who are new to the Australian property market or who are unsure about the rules and regulations relating to Australian property ownership will find plenty of help and support at Australian Property Investment. The company offers a personalised service that matches buyers with properties that meet their criteria in terms of location and investment value.

To find out more, visit

Investment Property Scam In Indian


Planning officials in an Indian city are launching a criminal case against a woman who allegedly tried to swipe a site from under the nose of the property owner by using falsified documents.

The Bangalore Development Authority (BDA) is warning real estate market firms and property investment professionals to be on the lookout for similar scams.

The group says Chanamma Shivalingegowda was allocated a 30 by 40 feet site in Koramangala in May 1984 and was given the possession certificate for the site the same year.

The plot was then left empty for a long period, which the BDA claims Esther Sarojini Alex, a woman employee of communications firm BSNL, tried to take advantage of.

The BDA says Alex, with help from Sri M Shankar Bin Muniyappa, approached the authority posing as Channamma saying the original documents had been lost and applied for an absolute sale deed.

Investment Property In US


A waiting list has been opened for a US condominium building featuring 100 investment property opportunities.

Developers said the Altessa building in Union City, Hudson County, New Jersey, would boast skyline views of New York city.

Full sales do not start until early next year but investors can add their names to a VIP list, Union City said.

The 15-storey scheme will include amenities such as a landscaped rooftop deck including a swimming pool.

Marcone Rocha, owner of developers Rocha Construction and Development, said:

“Scores of interested buyers have already contacted us to add their name to our growing VIP list.

“Many are single professionals or young couples drawn to the convenient location, magnificent views, luxurious floor plans and exceptional value when compared with communities found in neighbouring Hoboken and Jersey City.”

Construction is nearly complete at the site, Rocha said, with one, two and three-bedroom units ranging in size from 812 sq ft of living space to more than 1,400.

Investment Property Slumps In Australia


THE dearth of investment sales of assets of more than $100 million has left values languishing as vendors and buyers fail to reach agreement on prices.

But that may be the least of their worries. There are predictions that values could drop by up to 30 per cent in the coming 12 months.

Investment Property Databank says in a report that Australian commercial property returns were unchanged from the preceding quarter, earning investors 1.1 per cent in the September quarter. This is the lowest total return since March 1995.

Capital values at the All Property level slid -0.5 per cent. The mixed use and other properties category was the worst, values on a quarterly basis falling -1.1 per cent, while office capital values slid -0.6 per cent.

John Garimort, managing director in Australia of Investment Property Databank, said All Property total returns were unchanged largely because there had been a dearth of transactions.

"However, there is in excess of $20 billion of commercial real estate for sale, and once the expectations of buyers and sellers converge, we expect values to fall substantially.

Your Home Is Your Best Investment


Without a doubt - without any question in my mind - the best investment you will make in your lifetime is the home you buy and live in. As long as you are alive, you have to live somewhere. And if the recent downturn in the stock market proves anything, it's that housing is your best investment. Why? First of all, you can't live in a stock, mutual fund, bond, treasury, money market account, etc.

"When you buy a home, you get to live in it! Your home is your castle. It's where you love and live with your family - it's where your memories are made. Homes are much more than investments, they are your shelter and your safety. But if you return to why homes make great investments, the simple answer is that they are forced savings (when you pay your mortgage you pay down your home), they ultimately are leverage and they go up in value long-term. I promise you a decade from now, most housing markets will be higher than where they are today."

I cannot agree with Bach more! One of the fundamental basics behind investing in anything is "buy low, sell high."

Here we are: a time when prices have stayed relatively stable and interest rates are historically low. As I write this today, owner-occupied interest rates for a 30-year loan are hovering around 5.5 percent. This is a wonderful opportunity to buy a new home, whether you are ready to move up, downsize or buy an investment property.

Unlike a stock or bond, a home is a tangible asset. Years from now, everyone will look back and say, "I wish I would have bought back in 2008 or 2009." You can make that wish a reality.

Australian Investment Property


VICTORIA'S property market has taken a turn for the worse with almost half the homes auctioned on the weekend being passed in.

With 420 of the 865 houses on offer over the weekend not selling, it was the worst auction week for four years.

On the up side, some buyers snapped up bargains and dictated the settlement terms.

REIV chief executive Enzo Raimondo said the economic downturn was expected to hurt house sales into the new year.

"We can't see any huge increase in clearance rate between now and the end of this selling season," Mr Raimondo said.

"If there is one positive out of this market it is that buyers with the capacity to buy or borrow can secure a home or investment property at a price they wouldn't have got last year.

"If we get some more interest rate cuts, perhaps in the first quarter of next year we might see some improvement," Mr Raimondo added.

Investment Property In UK


British banks have underlined the need for a swift solution to the UK’s mortgage problems by reporting a low rate of home loan approvals.

The British Bankers’ Association released statistics showing October’s mortgage rates were lower than the average for the last six months.

The availability of investment property loans has suffered as a lack of liquidity prevents the UK’s main lenders from approving new deals.

However, officials pointed out that ‘high street’ banks were still providing two-thirds of all mortgages and said new measures could help availability.

BBA statistics director David Dooks said banks had increased lending to non financial firms and had bolstered financial intermediaries.

Mr Dooks said:

“That support, together with lower interest rates, will feed through to lending and the pre-budget report measures will help consumer demand.

“Comparison of current lending levels with last year is obscured by the very different economic conditions that exist now.”

He said there was currently a “reduced appetite” for borrowing and consumer credit was still “subdued”.

Investment Property In Dubai

A view from the UK:

Dubai investment property developers must delay requests for payments from buyers in order to stabilise the region’s real estate market, a consultancy firm has claimed.

RichVille released a fourth quarter report on the emirate’s property market and included a suggested rescue plan to prevent a potential collapse.

Some developers also criticised the government of Dubai for not doing enough to help out the sector.

Officials must work with builders to work out how to stimulate demand, the RichVille report claims.

Tariq Ramadan, chairman of Tharaa Holding, of which RichVille is a member, said;

“It is very interesting to see that while the authorities around the world are taking all possible measures to revive their real estate markets, authorities in Dubai seem to be doing nothing to support the real estate sector.”

Investment Property Down Under

From the Sydney Morning Herald:

DIRECT property returns continue to tumble across Europe, and rental contraction in the office and industrial sectors in Britain is adding to property market woes, the Investment Property Databank survey has found.

In its British monthly results to last month IPD's index showed all property total returns fell to minus 3.8 per cent.

Last month's results were more negative than those for last December, making it the weakest month on record. Commercial property capital values in Britain have plummeted by the largest monthly figure in IPD's 22-year history, minus 4.3 per cent.

This is more bad news for the Australian real estate investment trusts with exposure to British and European property markets.

Jonathan Kriska, an analyst at the financial services company Patersons, said the latest International Monetary Fund report forecast global growth to slow from 5 per cent last year to 2 per cent next year.

He said several Australian REITs had large exposures to European property.

Plunging Interest Rates

From the Washington Post:

Several readers complained that policy changes by Fannie Mae and Freddie Mac are limiting investors' ability to buy more of the surplus housing inventory.

Richard Moroscak Jr., a vice president with OlympiaWest mortgage in Lansdowne, wrote: "I get a call once a day from borrowers who are interested in purchasing an investment property. They have 780 credit scores, full documentation, cash for a 30 percent down payment or more, great assets besides real estate, etc. In other words, they're the perfect borrower in most lenders' eyes. But if they own more than four properties they do not qualify to purchase another investment property. Investors tend to own multiple properties.

"If they take a short-term hard-money loan, which is insane, they generally cannot refinance out of them. The result is foreclosure unless they find another hard-money loan. Investors are on the prowl, but in my humble opinion, the market would stabilize much quicker if they actually had access to cash."

A column about the risks to consumers' deposits if someone they're doing business with files for bankruptcy drew hard-earned advice from one reader.

"This happened to me, and I should know better because I used to be a lawyer who did a lot of debtor-creditor and bankruptcy work," said Ellen Paul of Chevy Chase.

"I wrote to my state legislators to suggest legislation that would require companies that take advance payment or deposits to be bonded for an amount reflecting the amount of deposits or pre-payments they held over the previous year. That way, we unsecured creditors would actually get our money back."