Real Estate & Investing

Parmdeep Vadesha asked:


The chief goals of any property investment are appreciation, cash flow and tax savings. Rental property investment is the only property investment that provides you all these three benefits at the same time.

The main rental property categories consist of single family rental properties, multi-unit residential rental properties, commercial rental properties and holiday homes. The first category includes long term single family renting, the second category includes apartments, buildings for multiple families while the last category includes shopping centers, office buildings etc. for a long tem renting purpose. Here are other points to consider with real property investments:

1) Methods like repossessions, ugly homes, and probate homes are useful for buying property. Lease purchases can be extremely useful which help you to leverage investment money and reach a positive cash flow from renting. Buying fixer upper homes or repossessions can help to reduce investment money and improve cash flow and appreciation.

2) One cannot expect a considerable cash flow from property with one tenant. In this case, the main goal is to cover the mortgage and current expenses.

3) Research on a potential rental home should include significant financial planning for years ahead, like expenses of property management, repairing, vacancy, emergency etc.

4) The apartment and the 2-4 unit homes are the main classes of the multi-unit residential property investments.

5) With apartment investments the main profit comes from the rental cash flow. A lease to purchase option and leveraging investment money is quite useful in this case. The most significant factors in this case are the financial evaluation and property management. With a steady cash flow from a number of tenants, it is possible to hire a manager for the property management. It helps to increase the cash flow and the value of the apartment building. Underestimation may damage the investment and lead to loss.

6) Commercial properties investments include office buildings, retail shopping centres, industrial properties and the like. The market value of these properties is decided on the cash flow (net rental income). The main objective of rental in these cases is to generate enough cash to exceed the cost of mortgage, insurance, maintenance, future improvements. This is not an easy task to handle. It requires analysis of many things. But if done properly it could prove to be lucrative. Changes in the economic conditions usually have a pronounced impact on these types of real estate investments than on residential property investments. And as office buildings and industrial properties are more susceptible to these changes, it is wise to keep extra capital to support those investments if something does not go as expected. In this case, a money-leveraging approach (lease to purchase option) is very useful.

7) A holiday home can be used in two ways. It can be a property home or an investment property. This category includes resort properties, mountain homes, or beach homes. With holiday rentals, the main profit comes from the appreciation. Cash flow generated from renting is usually used for current expenses like property management, mortgage and insurance. These are short-term rentals and require intensive maintenance.

Clint Jhonson asked:


The idea of investing in rental investment property is very attractive. Many turn to the real estate market, because it is a good method of long time investment. Property investment brings a good income, depending on the location of the real estate. Even if it is profitable, not everyone possesses those qualities which really make him or her good landlord. However, the one who possesses these qualities can earn a fortune due to the profits from renting the apartment or the villa. If you really decided to buy a property for its rental potential, your real work starts finding a good property for investment and this takes time, connections and good research in this field are vital.

As with any other investment property, you should know from the very beginning how long you intent to rent your property for. The longer you rent it out your property for the more rent you will receive freeing funds to further improve the property. You can also wait till you get at least a half of your invested money back, and after it to sell the property in its condition when market conditions are favorable for this. You can as well face more property investment risk with a shorter time renting. Even if, your rental will almost certainly appreciate over the next 15 years, it could as well diminish its value in the next 10 years, especially if you buy your property in an agitated market. That is why you will need a bigger potential annual return in order to cover the potential risk which might possibly occur. Nevertheless, in any case you should be careful from the very beginning.

Long-term ownership is more suitable for many small investors. You will have a lot of time to avoid any real estate market perturbations, and the investment property income can turn out to be a good supplement to your day job. With time, if you really get interested in this type of business, it can even become your day job. Although, the small landlords do not work in a professional capacity. The landlords who have some experience in this field find the necessary properties using different methods. Some analyze the market and the forecasts. Some buy real estate with foreclosures, but for this there are necessary certain connections with the city hall clerks or bank employees who know which properties are about to be sold. Newspaper ads can also serve a good help. Others sign contracts with real estate agencies which keep the landlords updated.

One thing you should look out for when deciding for a property investment is you can save enough for retirement and other goals before advancing in rental real estate investments. While rental income can represent a good supplement for your retirement money, most people should not rely on it to substitute other savings or make them entirely opened to the perturbations of the local real estate market. Those who are adequately adjusted to different investments in bonds, stocks and cash will be more ready to pass over the bad and good times. Because it is clear that, the rents and the value of the investment property can rise and fall as well, so it is important to be ready to count on other investments in order counter-act a bankrupting situation. You should calculate your expenses very carefully, from the very beginning in order for your expectations to be up to the level of the income you might receive.

PARMAR12 asked:


Everybody wants to have a secure future and therefore look out for various options to invest their money wherein they can earn substantial returns. Generally, people tend to invest their hard earn money in stocks and share which is definitely a risky process to an extent however as the time is advancing people are moving towards investing in the properties which promises a better rate of return and above all a secure process. Investment in land and properties has steadily gained the repute of being one of the best ways of investing.

Stocks, debentures or funds often do not come to the expectation of the people and also due to its nature of being up and down frequently, people are gradually turning towards a more promising investment and that is properties investment. However, an investor should be well equipped with property investment information before taking any decision. Proper advice on the properties investment helps in taking a well informed decision. Discussing with the property agents and conducting market research helps to a greater extent. Such things will enable you to know about the extent of rent an investor can earn. Another major thing which should be emphasized upon is that never ever invest the entire amount of your earned money, it is always better to find out the sources from where loan can be obtained on the reasonable interest rate.

It is always good to select an area which is already yielding profitable returns rather then investing into some land which is yet to be expected to gain appreciation in the near future. This will help the investor to gain immediate results other than waiting for the results to come. Also, people tend to get attached to their properties; it is advisable to think like a property developer, who has a business to do with the land. Moreover, any planning to get the property renovate should only take place if houses for the sale can help the investor to fetch good amount of profit.

Gathering all the relevant information related to the latest happenings in the property world helps to a larger extent. There are a lot of magazines, published articled etc available that provides the reader with the first hand information of the properties available world-wide. Pay visits to the property developers, enquire about the existing land rates and rent rates and invest only when there is any lucrative option is available.

Never get taken away by people who try to de-motivate, without finishing the entire research work and see it for your self, what happening in the market. Doing proper calculations and being smart helps an investor from investing in a property which is unlikely to provide with the good returns. If such home work is done with zeal and enthusiasm profits are sure to come.

Brendan O’Brien asked:


Finding a good property manager is like any other vendor search – it’s worth your time up front to make the best possible choice. That’s because a bad manager can cost you a lot of money, up to the entire value of your rental property investment. Consider:

• Your property manager will be receiving rent and fees on your behalf. A crooked manager could steal you blind.

• Your manager will be in charge of finding new tenants. A naïve or slipshod manager could bring in bad tenants who trash your building.

• Your manager will handle maintenance. A greedy manager could charge a fortune for simple repair jobs.

Here’s a thirty-question checklist for interviewing prospective property managers. The answers you get will provide a very solid understanding of each manager’s qualifications. You can also get an impression of a prospective manager from other cues – I’ll explain those at the end.

Finally, remember that you have to compare managers to others within an area. It’s possible that none of the prospective managers in one city will match the high standard of your terrific manager in another. On the other hand, if you can’t find a good manager in a city where you plan to invest in real estate, maybe you shouldn’t invest there.

The first questions have to do with finding good tenants, which I think is the key to a happy building. A building with good tenants tends to have fewer maintenance and other issues.

• How many vacancies do you have right now? Out of how many total units that you manage?

• What is the average length of time it takes to fill a vacancy?

• Is that average time getting longer or shorter?

• How do you market your rental units?

• Do you require an exclusive arrangement for marketing to new tenants?

• How does your web site look?

• What factors would make you reject a prospect?

• Would you accept a tenant who met your qualifications in some areas, but not others? Which qualifications are most important to you?

• What screening methods do you use?

You want a manager who finds good tenants reasonably quickly. He should use a variety of methods to find prospective tenants, such as a web site, Craigslist postings, newspaper ads, signs, flyers and more. Your manager should follow an extensive screening process, but be willing to accept a “maybe” tenant if the situation is right. You want a look at the web site to make sure that is inviting to prospective tenants, and constantly updated.

As for the exclusive arrangement, property managers never mind when you or somebody else finds prospects for them. However, in almost all cases, they will still want a rental fee for moving the prospect into your rental unit. Make sure you have a clause that if the unit hasn’t been rented for some time, and you or someone else you find brings in a new tenant, the rental fee is cut in half. You don’t want it cut to $0 because the manager will still have to screen prospects.

The next questions relate to tenant management. It’s just as important to keep good tenants as it is to find them.

• What does your lease look like?

• What is your late rent policy?

• What other rules do you set for tenants?

• What percentage of tenants do you have to evict?

• How does the eviction process work here?

• How do your tenants contact you?

I recommend sticking with the manager’s preferred lease, late rent policy, and rules unless you have a really major objection. If the manager is really experienced, chances are they’ve developed smart rules and policies over time. Tenants should be able to contact the manager through a variety of ways during the day, and have an emergency number for off hours. If the manager is always evicting tenants, he’s bringing in bad tenants.

The next questions relate to maintenance.

• Which kinds of maintenance jobs are handled in-house?

• Which ones do you use an outside handyman for?

• Which ones do you use professional contractors for?

• How many quotes do you get for jobs?

• How expensive does a job have to be for you to contact me before doing it?

• What are your rules for contractors being inside occupied rental units?

• Who are your preferred contractors?

Managers should have a well-thought-out system for assigning jobs to different parties – in-house employees, handyman and professional contractors. Almost any plumbing, heating, or electrical job should be handled by a professional. Other jobs, such as paving a parking lot, require special equipment that usually only professionals have. But most small jobs can be done by handymen who will cost you less.

You want multiple quotes for major jobs – say, anything over $500. You should also have a rule that contractors can never enter an occupied unit –even if the tenant is not home at the time – without a manager’s representative being there. Finally, you want the names of preferred contractors so you can run a quick check on them.

The last group of questions relates to experience. You want managers to know the local real estate world inside and out.

• How long have you been a property manager?

• How long have you been a manager in this area?

• Can I see some of the other properties you manage?

• Do you personally invest in real estate in this area?

Finally, you need to understand your arrangement with the property manager.

• What is your fee structure?

• How will I get reports?

• Do you require an exclusive arrangement to broker the property?

• How much notice will you give before terminating a contract?

The manager’s fees aren’t really important unless they are much higher than everybody else’s, or are so high that you really can’t afford them. Reports are very important because they are your only window into how your investments are performing. The best way is to get them on your own computer, on your time – as may be the case if they use on-line property management software.

You should not accept any exclusive arrangement to broker properties unless they have a limited term. In other words, if the properties don’t sell after a certain time, you can re-list with a different broker for no penalty.

Also, you should require good notice for the contract to be terminated – at least 30 days. That gives you time to find another manager.

Here are some other things to watch out for:

• A manager with a messy office or personal appearance. Chances are he doesn’t much care about the condition of the properties either.

• A manager you have a hard time reaching by phone or email. If he won’t return your messages now when he’s trying to get your business, what are the chances that he’ll do better later?

• A manager whom you sense is trying to intimidate you with knowledge. The “don’t ask stupid questions, I know all about this” approach is often a cover for not really knowing much at all.

Parmdeep Vadesha asked:


Purchasing a property in France has always been viewed as a lifestyle investment for the many who love the country’s cuisine, wine and the general way of life. Since the nation is one of the most popular international tourist destinations, it has naturally become one of the most well-known and sought-after investment areas in the world. This is why being part of the French property investment world is seen as one of the most profitable undertakings by many individuals with a keen eye for hefty returns.

While there are various reasons why people buy properties in France, property investors zero in on solid rental returns and exceptional capital growth which for over seven years has continued on average double digit rates, states online portal FrenchEntrée. The most popular areas for property investors are Paris, Cote d’Azur and the Alps. Even though the potential to purchase properties is hindered by supply and building restrictions, the long-term outlook continuously appeals to property investors.

Where to invest in France

As with all property purchases, choosing the location of your property is extremely crucial. The idea is to search for a property in an area that is not yet pricey but is being gradually discovered by tourism. But one of the most practical French property investment strategies is to buy in areas where many people go to on holiday in large numbers or where there is an abundance of jobs, where communications and access are excellent and where there is a flourishing domestic economy.

Letting your French property

If you already have acquired an investment property in France, the next thing you want is to make it pay its way. You can do this by renting your property. In general, a property located in a French city provides a better opportunity to successfully let it for a long term while one that’s situated in a rural area is more suitable for short-term letting. Since France is typically every tourist’s dream destination, you are well-positioned for a healthy rental income.

Get in touch with others in your area that rent their properties, try to determine typical rents and think about speaking with rental and lettings agents. You can also have a professional survey done on the property and have them inform you of its earnings potential.

One of the most well-known ways to let out a property in France is through a leaseback. Known as a good long-term investment in the UK, a leaseback can have rental yields of 5.5-6% but the main thing to consider is the viability of the investment. Thus it becomes crucial that you look at the site yourself so you get the assurance that the strong rental return figures are strong indeed. Under a leaseback scheme, the shortest lease available is 9 years. With a French property investment scheme, you need to make sure that you get indemnity insurance prepared as well as the typical buildings and contents insurance.

If you have chosen a French property investment carefully, you will now have a property in France in an appealing location. To ensure capital gain on the property, it is recommended that your investment outlook is long-term.

Dale Campbell asked:


When it comes to buying property, Costa Blanca is a fantastic location for property investment as it has a perfect combination of awe-inspiring natural beauty and a cultural legacy. Costa Blanca is well known for its resorts such as Benidorm and Elche, the palm tree capital of the world. Golf lovers flock to the area to enjoy year round golf thanks to a climate that provides over 300 sun filled days a year. Food connoisseurs enjoy meals that have been influenced by Costa Blanca’s Moorish agricultural past and rice is a main ingredient in many dishes, which includes the famous paella. Many people enjoy a glass of fine wine produced in the area, to compliment their food.

Besides being one of the most beautiful and sought after destinations, Costa Blanca has many different types of properties that are suitable for most people’s budget. Buying property in Costa Blanca is all about location, location, location. If you have a large budget, then properties along the seafront would be ideal as they tend to be more expensive then else where. Seafront properties are known as real estate paradise as they are sought after areas with holiday makers and the properties can bring in some healthy rental income for the entrepreneurial property investor. If you are looking for a property as a rental income, it is advisable to choose one that has some beautiful natural sights and is near attractions like a Water Park and an Animal Park. Being located near a shopping mall and public transport can also increase your asking price for rent, and add value to your property when it comes to reselling.

For some property investors the seaside properties are too expensive, so they are traveling inland where the property prices are easier on the pocket. This is proving to be a popular choice for people relocating to Spain as not only are property prices cheaper, but the way of life tends to more ‘Spanish’ then places along the seafront that have had a heavy British influence for many years.

Once you’ve decided you’re going to buy a property, set a budget and stay with it.

In Costa Blanca property prices vary with the seasons. Therefore, when you are buying property in Costa Blanca consider the time of year as the off-peak season can provide you with property that is cheaper than at the height of the tourist season. Visit the property at least twice before you make a decision, and visit it at different times of the day. Talk to the neighbours about the area and listen carefully to what they say. Also check what amenities the property has, such as electricity, water and gas, so you don’t have any surprises once you’ve bought the property.

Having some knowledge of the property market in Costa Blanca is an important aspect to consider when buying property as the market is different than the UK. For example the buyer is liable for a transfer tax (IVA) and the rate is dependent on whether the property is a new build or a second-hand property. There are online service providers providing legal advice as well as up-to-date details of available real estate. Confirmation of the reputation and knowledge of the real estate consultant is a must to ensure reliable information about the property you want to buy. It is also important to have a legal advisor to check ownership of the property and any outstanding debts on the property before you sign any paperwork.

In conclusion, if you are looking for an overseas property investment, buying property in Costa Blanca has a lot to offer investors –great weather, popular with tourists, rich with culture, and different types of properties to suit all budgets.

gonzalezeliezer asked:


 

Property investment is a wise concept to consider, especially in the USA. Some individuals may be hesitant to invest their money in real estate due to the latest news headlines concerning the slow real estate market. However, such an issue can in fact act in your favor in a few different ways. There are a few different reasons why engaging in an investment in real estate now is a great thing to do.

 

One reason to consider purchasing real estate as an investment is that although the market is slow at this time, everyone needs a place to live. The sale of property may be slow right now but this does not affect the purchaser of the investment property. This in fact will help to benefit the purchaser of the investment property, especially if he/she plans to rent it out for investment purposes. Many individuals may not be able to afford to buy property and therefore will be willing to rent the property from you. This is an advantageous factor for the buyer of the investment property and one very good reason to consider buying some property to hold as an investment.

 

Another benefit to engaging in the investment of real estate is that equity on the property will accrue throughout the years. Although the market is seeing some trouble in various areas of the United States, it is still possible for a good amount of equity to be built in the property. In other words, the real estate slump is not expected to last forever. Therefore, those who invest in property may find that they receive a nice return on such an investment property in the future.

 

An investment of this type is also beneficial in that it provides a safeguard for the property owner to have in their back pocket. With the ups and downs of the real estate market it is nice to know that one has a roof over their heads even if it is currently being treated as a property investment. Should an event occur where your primary residence is not livable or you wish to move, it provides peace of mind for you in knowing that you do have a property in reserve just in case you may need it.

 

Lastly, by choosing to invest in property in the United States you may be able to lay claim to something which is up and coming. Certain areas throughout the United States are experiencing revitalization and one area which was once a less desirable place to live may just be the new hotspot. By selecting a property investment of this type you are becoming part of a new era and investing in a piece of real estate which will pay you back quickly and efficiently in the future.

Alina asked:


Today individuals have started acquiring real estate investment property abroad as well. One of the most targeted countries for property investment is the UK. With its common law legal tradition, the investors can rely greatly on the legal safety of their property. Property investment is not a hard task, and those who have ventured on property investment have discovered it quite rewarding.

The primary objective of real estate investing is for the investor to make profit.The foremost scheme for property investment is to reflect on the low procurement and high selling scheme. This stratagem will assist you to produce hard cash for further investing.

One of the best ways to earn quick cash is to purchase property at a low price and later on resell it at a high price. Instead of reselling the property, you may also give it on rent. It is advisable that you lease your property only after you have completed the period of paying your mortgage amount. In that case the monthly rent that you get gives you some profit.

A well-accepted way to purchase a property for cheap is to purchase a distressed property. These properties are key targets for real estate investing. Distressed properties are generally available at a very low price because of their look, state, or the monetary situation of the proprietor. Property investors can purchase distressed properties for a low price, do some reconstructions and decorations, and then resell the property at market value for a profit.

There are several up-coming methods of resourceful property investing to increase profits from property investment. If you are a potential property investor and want to make profit, please feel free to contact Midas Estates.

rob watts asked:


Dream Property Investment in Dubai

Property Abroad is one of the dreams of many people. Property Investment seems like a nice dream but something that could never come true. This is all wrong! The potential for Property Investment is now so good, as more and more markets become available to every buyer. If you are a first time buyer and seeking that little piece of Property Abroad or you want to build up your portfolio to include greater property investment, you can do it!

Once you have decided that you want to invest in Property Abroad then the next step is choosing the right place to suit your budget. This can seem like a daunting task, especially if you do not know which way to turn. The answer is simple, if you are looking for a great potential Property Investment market then look no further than Dubai.

If you are considering whether or not you should Invest in Dubai, then just think of how much money you will make in return. For a small amount of capital you can buy a Dubai Property and you will make great returns. The market for Dubai properties is constantly going up, which means that more and more people are desperate to live there. If you have a good piece of Dubai Property then you will take advantage and make money.

The Dubai Property market is where you can make money. Any professional Property Investment holder will tell you that if you find the right market then you will have the edge over others. Once you Invest in Dubai you will be able to tap into the need for executive accommodation and rent your property out. This means that instead of having a vacant apartment or building, you can make money from tenants, and when you want to move there either temporarily or permanently you can. You can make money from your Dubai Property throughout the year, helping to increase your overall Property Investment return.

Choosing the right property to suit your budget is key. You shouldn’t break the bank to get the right deal. There are potential property investment options for anybody. The lower end of the market has properties that can cost around £20,000. These suit small investors and those that want to buy a Dubai Property but cannot afford a high price.

The higher end of the market which deals with more professional Property Investment portfolios can cost around £1,000,000. This type of property can showcase all of the best assets of Dubai and cam make a real impact on your finances. The return that can be expected from these types of properties is amazing.

All Dubai Property is well maintained and structurally sound and can offer many different styles to suit. Whether you want to live in contemporary Dubai or live in a modern Dubai Properties complex, they have it all.

If you want to experience a better life and live comfortably then you should seriously consider the option to Invest in Dubai. The market is good and it is one of the best places in the world to live right now!

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Uwe Falkenberg asked:


Property appraisal or property valuation is the process of determining the value of the property on the basis of the highest and the best use of real property (which basically translates into determining the fair market value of the property). The person who performs this property appraisal exercise is called the property appraiser or property valuation surveyor. The value as determined by property appraisal is the fair market value. The property appraisal is done using various methods and the property appraisal values the property as different for difference purposes e.g. the property appraisal might assign 2 different values to the same property (Improved value and vacant value) and again the same/similar property might be assigned different values in a residential zone and a commercial zone. However, the value assigned as a result of property appraisal might not be the value that a property investor would consider when evaluating the property for investment. In fact, a property investor might completely ignore the value that comes out of property appraisal process.

A good property investor would evaluate the property on the basis of the developments going on in the region. So property appraisal as done by a property investor would come up with the value that the property investor can get out of the property by buying it at a low price and selling it at a much higher price (as in the present). Similarly, property investor could do his own property appraisal for the expected value of the property in, say 2 years time or in 5 years time. Again, a property investor might conduct his property appraisal based on what value he/she can create by investing some amount of money in the property i.e. a property investor might decide on buying a dirty/scary kind of property (which no one likes) and get some minor repairs, painting etc done in order to increase the value of the property (the value that the property investor would get by selling it in the market). So, here the meaning of property appraisal changes completely (and can be very different from the value that property appraiser would come out with if the property appraiser conducted a property appraisal).

A property investor will generally base his investment decision on this property appraisal that he does by himself (or gets done through someone).