Tag: Investment

Choosing Commercial Property Over Residential Property For Your First Investment

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You’ll probably find that they had an aversion to debt having lived through tough times. They use lay-by instead of credit cards. They lived beneath their means. They saved money.

DLF Plots Sector 73 offers a wide variety of housing options, with plots available in sizes of 240, 350, 420, 502 & 1000 sq.yds. The pricing for DLF Plots at sector 73, Gurgaon has been set at Rs. 40,000 per square yard.

If it is residential property that you have in mind, you can buy land and build your own dream homes. Or you can take your pick from deluxe apartments and villas, built by well known names like DLF, Ireo, Vatika and others- that will suit your budget.

As far as commercial properties are concerned, there are not yet any laws to protect the renters in this case. However, if you are concerned regarding the use of your deposit, there are actions you can take.

In case, you decide to stay at an apartment complex in a school district, there will be plenty of children there. This way, your child would be able to have some healthy peer interaction without having to spend too much time along indoors. At the same time this is a benefit that you will be able to receive if you stay in residential colony of villas as well. Additionally, you need to think about whether this locality is safe for your family.

It was a great time to borrow money. Having been burned from shares, many speculators sort the safety of bricks and mortar, and used the combination of the equity of their existing homes and cheap financing to create what the Economist Magazine would later call ‘the biggest asset bubble in history’.

The business plan should capture the strategic operational and financial aims of the business. Recent reports on real estate resources throw light on the increasing demands of buyers which in return has given a great boost to the supply of these services. This has made it a very profitable business indeed. In the U.S it is one of the largest selling markets in the world. In fact, it is so significant to the economy that financial crisis resulting out of this market has the power to cripple the world economy.You can take cues from the easily available guides and start your own business. Because today, not just in U.S, but in the whole world, there is no business like real estate business!

Buying Investment Properties

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One lesson being rich teaches people is that money talks. Savvy property investors know you don’t have to wait until a For Sale sign goes up in order to purchase. If an interested party takes the current owner by surprise, it is often possible to get a good price on a piece of property that isn’t even up for sale. And there aren’t any competitors to drive up the price.

A niche, in the context of this article, is the creation of a specific advantage that allows a property owner to gain a competitive advantage over their competition. By creating a niche, the property owner will make their rental properties stand out among the rest, thus getting them new tenants quicker, while prolonging their stay. The niche that I feel is the easiest to create yet the most prevailing to possess is the niche of transforming a property into a home for the tenant rather than a temporary residence. The list below explains how to get started on building a competitive advantage in rental property investing.

Another decision is what house or unit to buy. Would it be old or new? Houses and units usually are the best offers for landlords. They are easier to rent out and to maintain and if things go wrong in the property, the expense is shared by other owners.

Do not be afraid to come out a question particularly for those who are saying so much. If an agent or a certain particular person offers you something, ask the person if she or he has invested in the property that she or he is offering. If they’ve, then, it proves that the property is and shall be a great investment. But when they haven’t invested in something that they claim, pop one other question. Generally, what corporations and brokers offer will speak for themselves. Assume, if what they offer are so incredible, then why haven’t they invested on it? Until they’ve glad your questions, may as effectively turn down the offer.

The period after the tax sale is the best time to approach the owners. Their property has been “sold,” and thus selling to you for a steep discount instead will seem like a better option. Find these owners and you’ll find the most motivated sellers in real estate.

What if you can’t sell one of your properties, and you are left servicing the loan? Do you have access to cash to keep servicing the loan until you sell the property? Do you feel comfortable selling the property at a loss? How long would it take you to make the decision to sell at a loss? What impact will holding the property have on your cash-flow?

Halifax House Price Index reports have seen an annual drop in house prices by some 2.1%25 across the Uk. This is not a sign of a good investment for the most part! Other reports show the sales of homes could fall by 20%25 in 2008, another warning sign that homes may not be the strongest investment at the moment.

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One Mistake To Avoid When Starting Out In Property Investment

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Allow kids – Many landlords do allow kids in their properties, but at the same time one would not believe how many don’t. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.

The reality is challenging situations do happen. Your tenant moves out, the hot water system needs replacing, one of your properties won’t sell and/or interest rates go up. Do you have ready access to cash to help you through difficult times?

My friend Lee was referred to Jane Doe by one of his investor clients; her carpenter had just quit and left her in the middle of an unfinished renovation on two new 1 bedroom basement apartments. She was visibly upset, stressed out and running out of money really quickly, in what she referred to as “an endless money pit”. As mentioned, this was her very first real estate investment; she had no previous experience of renovation projects first hand. To her, this experience was supposed to be easy, fun, and trouble free . after all, she was supposed to make more money for herself than she was making in the stock market and in mutual funds, right?

Now I want to state clearly that while I’m an advocate for anyone taking that first step and commend anyone who wants to improve his or her life through investing in real estate, it should be noted that many of these first timers are also last timers. In my experience, these ultra-enthusiastic investors start off with a bang then crash and burn with their investments, only to never try again. The truth is that these investors, who I’ve dubbed the “Resolution Investors”, really didn’t have a chance because they avoided the proven track record to success in real estate investing.

It’s easy to learn the basics of the real estate property investing. Read magazines or check out websites online. These tools can help you but only if you invest time and effort.

These are all quick and easy ways to increase the value of a property. They require very little upfront investment, allowing you to squeeze the most profit out of every investment. The main thing to remember is that a home needs to look like a home. If people can’t picture themselves and their family living in the home, they aren’t likely to buy it.

One thing that you can do is to check the history of capital growth of the area where you are going to purchase the estate. You have to check if it is steady and there are no significant risks involved. Speaking of location, it is also necessary that you make sure that the estate is very close to all the major establishments and modes of transportation. You should also be certain that it has a tight security and the estate itself is well maintained.

How To Analyze A Commercial Property Investment Opportunity

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Find other agents sale or lease boards in your area and market your own real estate services to the adjacent and nearby properties. It is remarkable how adjacent properties would like to compete with an existing listing.

Before you even think about making big cuts in expenses, have an idea of what your retail industry averages are for your type of retail business. A comprehensive comparison will help attain clarity and will be the basis for a new retail profitability plan. Now that you know what to aim for, let’s move forward. Let’s say that after your comparison you have found major issues with the following expenses. What steps will you take to cut expenses and improve profit?

To have a chance at getting approved for a commercial loan, you need to have the income to prove you can afford the payments, and a down payment of at least 20% of the loan. Also you need to have a good credit score. A bad one may not cost you the loan, but it will cost you thousands of dollars with higher finance charges. To fix that simple go with a credit repair company. Credit repair is fast, simple, and effective.

12. The ideal stage to move the list of properties through can be displayed in a Gantt chart. This helps the client see the path of progress and results.

Many commercial property investors purchased properties years ago. Those investments have produced income and appreciated over the years. An accounting function of the commercial real estate business is each year your accountant has been depreciating the property’s value on a tax basis. You now want to get out of the business or maybe relocate and you need to decide, should you pay the gains tax or create an exchange, an exchange which could be tax free! The first question I must ask myself is what will I do with the money? How will I structure the sale? What options do I have?

Ideally you’re looking for entry level to lower mid-range housing, 15 – 50 years old. It’s OK if the area is a little blighted as long as things are on the upturn. Look for visible signs of redevelopment.

These are especial loans for making a beginning in a trade. You are going to start a new business. Therefore, you may not be having any record of taxes or bank statements in the name of your trade. This is where the lenders become over cautious. In the absence of these records, the lenders cannot assess your capability of running a business. Therefore, you are a risk. To counter this, you should make a plan of investing the loan. You should clearly apprise the lender that how you are going to prosper through the loan.

Property Investment – Do You Have What It Takes To Succeed?

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Take your profits – pay the back taxes or quickly sell the property. Finally, pay off the back tax, or liquidate the property quickly. If you have the money, pay off the tax bill and try to sell for retail, or rent it out. You don’t have to pay the taxes – with 0 invested, you can afford to sell to another investor and still profit big-time!

Now I know you’re probably thinking, how can I find all these people when I barely know what I’m doing as a new real estate investor and how can I afford all of them. Well the truth of the matter is, you will find a way to pay them as you begin to require their services.

Using the example above, if you have a 0,000 loan on a property valued at 0,000, you are 80%25 geared. This means you own 20%25 of the property, and your lender owns 80%25.

McElroy says the best approach is to be aloof, to assume every negotiation will end with the buyer leaving the table. Most deals simply are not deals, McElroy said. The savvy investor knows that it is dangerous to become committed to the idea of closing the deal.

Have a good think about what your requirements are for the land and plot you wish to purchase. If you are a keen gardener then perhaps you will consider buying a plot that is large enough to keep a good sized garden. Towns and city areas normally have a higher availability and choice when it comes to property investing.

These people have ready sources of cash and form a valuable addition to your buyers list. Once you email your deals to your buyers list, chances are you will find a buyer quickly.

There is not a steep learning curve to multi unit housing, it is very similar to buying a home, or second investment property just on a much larger scale. Like buying a home, you have to find a property that suits the your needs. Does it fit in your budget? What kind of revenue will it produce? Is it in a desirable location? The process to find a multi unit may take a bit longer; it’s not like the residential market where new properties are on the market continuously. You have to be a bit more patient when finding those perfect multi unit properties.

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