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.

Parmdeep Vadesha asked:


ty prices in the UK start to stabilise, an increasing number of buyers are looking abroad to invest. One of the places many investors have turned to is France which is regarded as one of the most visited destinations in the world. Last year alone, the world’s sixth economic power and one of the most open nations in the world had over 60 million visitors. France has also been one of the chief host countries of foreign investment for years. Invest in France Agency asserts that some 20,000 international companies have already selected the country as their business destination.

The country is currently enjoying an exceptional position as one of the best places for British second home buyers to invest in at this point in time, according to Property Finder France. Compared to other locations, many investors find that France is “a better bet” when it comes to overseas purchases. Figures from the Association of International Property Professionals reveal that 17% of all foreign properties purchased last year by buyers from the UK were in France.

According to industry experts, buying a property in France is no longer the domain of couples planning to retire. There is already a noteworthy number of first time buyers and young couples who are moving to France as the prices there are cheaper and the quality of life is better, says Property Finder France. Rather than scouting for areas in the South of France, these particular buyers are looking at metropolitan locations including the center of France, near Paris and the areas around them.

Experts note that even though house prices in the country are declining, deals are still available thus making France a popular option when it comes to purchasing properties overseas. It has also been able to keep its exposure to the sub-prime market at a minimum giving it a stronger position from which to weather the storm.

Buyers who are looking to buy French property investments are advised to take into account the country’s regional aspects as there are different areas that are doing better compared to others. It is recommended that potential investors thoroughly study an area they’re interested in, its trends and long-term outlook.

With average profits of 10% per annum and a thriving rental market presently giving investors profits of approximately 7% in some highly desired areas, a French investment property can provide investors a profitable and secure option. Propertyshowrooms.com provides some essential data that make investing property in France a worthwhile strategy:

* The country has a historically robust and secure market for property investors.

* Residential property price growth for the long term is at a decent 10% (estimated) each year.

* Net rental profits can be pegged at approximately 7-10% depending upon what you buy and where.

* Of late, capital gains tax on housing has been halved to 16%. Property holders of more than 15 years are exempted.

It is apparent that France is a valuable market for property investors to invest in. With the soaring number of buyers heading there, property investors are advised to take action fast before the best bargains are grabbed. In addition to a beneficial market, investors are likewise assured by this established market where homebuyers and investors have similarly enjoyed strong profits on their investments over the years.