Tag: Property

4 Tips When Investing In Property

Two of the key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. The world of Real Estate investing has been a major source of wealth for many people. If done correctly, investing in properties can make you wealthy beyond your dreams. The following contributed post is entitled, 4 Tips When Investing In Property.

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If you are looking into various investment opportunities and better ways to use your money it is always worth considering property. It has historically been one of the most stable markets to invest in, though as with any speculative investment, comes with no guarantees. If you are unsure quite where to begin with this one, then take a look at our 4 tips when investing in property to get you started.

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Research the area thoroughly

The first thing that you will need to do is research the area that you are looking to buy in thoroughly.

You need to understand who your potential buyers or tenants are going to be in order to understand what they will be looking for in a property. Look at the transport links available and the amenities and facilities nearby. Could this be a great area for young professionals? If so, look for commuter links, homes near train stations, parking availability and perhaps decent bars and restaurants for their social lives.

Other factors worth researching are school catchment areas, medical facilities, neighborhood crime levels and any upcoming developments and changes planned. All of these can affect the price that you buy at and then the price that you may be able to sell or rent.

Selecting the property

Now that you are clear on where you are best to buy, you need to select the property that you wish to invest in. You will need to run numbers with your mortgage advisor and realtor to ensure that it is financially viable to purchase in the first place.

You will then want to commission surveys so that you are aware of any issues upfront before investing. This is slightly different to when you buy for yourself inasmuch as you are not going to have years to correct and improve things, you will want to turn things around quickly for your sale or to get occupants in.

Focus on the exterior and stability

You need to prioritise taking care of the structure of the property, before spending time dressing it inside. It can be easy to get caught up in the design of the interiors, but spend money on the exterior first and work your way in.

Whether you need to use waterproofing contractors or roofing contractors, ensure that you look around for the best company to undertake the work and do not leave it too late to carry this out. Factor the costs of work like this into your investment and projections to give you the best chance of making a profit.

Be realistic with your projections

You need to ensure that you are being realistic with your projections.

You have to be clear on how much time it will take for you to purchase and renovate the property so that it is in condition to sell again or let out, and then run the numbers to check that this works for you.

You need to recognize that some areas or streets have a ceiling value, and creating a magnificent state of the art eight bedroom house on a street full of traditional three bedrooms is unlikely to be a good idea as you simply will not make your money back.

Also factor in the time it can take to get an interested buyer or tenant to your calculations.

How To Find Your Property Investment Niche

Two of the key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Investing in real estate can be very lucrative if you know what you’re doing. No matter which part of it you choose to get into, much of succeeding in the real estate investment game involves finding the right property. The following contributed post is entitled, How To Find Your Property Investment Niche.

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If you are considering getting into the property market, you may want to explore the possibility of finding a niche area in which to grow your investment portfolio.

While many people will buy based on the outlay, and the level of work needed to a property before renting or selling-on; so many investors don’t focus their attention on specific areas of investment. Being a specialized investor will allow you to develop significant experience within your sector. Once you have gained that, you can apply your knowledge into getting the best investments.

Investing In Apartments

Often, private investors overlook buying apartments. With an ever-growing population, particularly in concentrated urban areas, apartment living is trendy. A small space within a popular area with excellent links to business hubs, as well as social amenities offers the opportunity for a premium price tag when it comes to renting or selling on.

Take, for example, at these Zetland apartments. Zetland is an area of Sydney that is currently undergoing gentrification and urban renewal. Businesses will begin to flock to the city once developments are completed. Buying into an area that looks set for a significant culture shift now, would pay dividends when the demand for real estate in the neighborhood hits its peak in the coming years.

HMOs

Houses of multiple occupancies, or HMO for short, offer a high return on investment. By splitting the property into smaller flats or apartments, you can have various rental streams. You will have more tenants to manage. However, you can always hire a letting agency to deal with this process for you.

Given a substantial rise in HMO properties, and the prevailing of landlord exploitation of tenants, there are quite a few regulations surrounding HMOs. It is recommended that you research the specific rules in your area, as you may be required to have a license and undergo regular inspections.

You may want to consider renting this type of property out furnished. And, often, due to the nature of the property it is common to include any utility bills within the rental cost.

Generally speaking, the yield on a house of multiple occupancies is significantly higher than a single-occupancy property of similar square footage.

Student Lets

Students offer an excellent opportunity to gain maximum rental potential from a property. Again, this is similar to an HMO in that you may want to divide up a property into smaller units or rent out on a room-by-room basis. Student rentals are generally in very high demand, and you are almost guaranteed to find tenants. Your income will be dependant on term times, so consider using the summer holidays for any refurbishment works that need doing.

Holiday Lets

Buying to rent out in a popular holiday area can provide an excellent yield during peak seasons. As you will generally be letting on a nightly, weekly, or fortnightly basis, the price can be much higher than if you were to rent out a property permanently.

You will need to consider any downtime, such as periods where there are less likely to be visitors to the area such as during the winter months.

You will also need to market the property continually, and also deal with housekeeping whenever visitors leave.

Locked Out of the Property Market? Go Abroad

A key focus of my blog is Financial Literacy/Money. Purchasing a home is the greatest purchase and investment many people will ever make. In many places across the country, the housing markets have become exclusive to the point where people can get in. One option is purchase property abroad. The following contributed post is thus entitled, Locked Out of the Property Market? Go Abroad.

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Back in the days, our parents were able to buy their first home for next to nothing. Getting their first job was a fairly easy achievement as well and, sadly, something that many young adults find to be a much bigger challenge.

While some people are able to get a hold of their very first house or apartment with the help of their family or a degree in a field that needs more candidates, most of us are still struggling to make ends meet – and the real estate dream seems further away than ever.

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Luckily, there are options out there and you won’t necessarily have to be renting a flat until you’re in your mid-forties either. Here is a handful of ways to achieve the property dream abroad instead of in a difficult market at home so that you can make a passive income that way – or just become an expat instead.

First: Research the country

If you have never considered buying property abroad before, you’re probably at a loss in terms of where to even start. Where you decide to invest should, of course, depend on a few factors: how much money you have to invest, whether or not you’re looking for a tropical holiday home, and how profitable it is for foreigners to invest in the country.

Some of them are up-and-coming and may give you a decent profit if you manage to hang on to it for a few years or even a short decade. Others, however, may seem tropical and dreamy but make it tricky for foreigners to invest. That’s why you need to do some decent research first and consider your own intentions as well.

Start by checking out this site to learn more about the best countries to invest in, at the moment, and keep in mind that the political climate and the country’s general economy may affect how great of an investment you’ve made.

Research is the keyword here – and the more you know, the better prepared you’ll be when it’s time to make a decision.

Next: Figure out your mortgage options

While a lack of knowledge tends to be the first thing that puts most foreign investors-to-be off from a real estate project abroad, to begin with, they’ll often be thrown off when they try to find funding for their new property.

Keep in mind, however, that some countries are a lot cheaper than others and, if you’re able to, you’ll save yourself a massive amount of hassle if you can just pay everything off at once. Consider your inheritance options, for example, and see if you’re able to get some of it in advance – that way, you might be able to buy a smaller flat without having to take up a loan at all.

That’s the kind of stuff that will make you quite a bit of money when you rent it out as you’ll only have maintenance expenses on the property.

If not, it’s a good idea to ask your parents if they can take out a mortgage on their property and lend you this money – either as an inheritance in advance or just as a pure loan. It will be much easier for you to pay them back once you’re able to rent your new property out, after all, and their generation can start to feel a bit less guilty about the terrible real estate market they’ve left us in.

Have a look at this article on mortgage loans as well, by the way, to learn more about your options when buying property abroad. There are other ways to obtain a real estate overseas besides from depending on your parents or using the lump sum you’ve saved up, though, so consider other options such as financing it through a bank here at home.

While it may be difficult to get a mortgage loan for a property abroad through a bank in your home country, it’s not necessarily impossible. Do your research before you settle on anything final and keep in mind that buying a property at home would have been just as difficult – and much more expensive.

Remember to read up on whether or not you’re allowed to rent this property out as well. Some countries, such as Spain, depend on tourism and make a large amount of money from accommodation during the high season. It just doesn’t make sense for them if foreign investors step in and rent out their own property for next to nothing through Airbnb or similar.

Research, ask a professional for help and keep in mind that you’ll always get there in the end.

How to Know if a Property is a Good Investment or Not

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Many people have gotten wealthy by investing in real estate. No matter which niche of real estate investing you get into, a crucial skill is identifying which properties are good investments and which ones are bad investments. The following contributed post is therefore entitled, How to Know if a Property is a Good Investment or Not.

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If you want to buy a property, then there are a lot of different things that you need to think about. You need to think about the location of the property, the condition of it and even the price. Only when you have been able to take all of this into consideration, can you then begin to really make sure that the property is the right one for you.

Know the Numbers

Unless something catastrophic happens between the time your offer is accepted, and when you close, there isn’t a single reason why your loan shouldn’t go through. Before you start searching online, you have to make sure that you speak with a mortgage lender. You also need to make sure that you know what you can qualify for, and even how much you are spending on a monthly basis. When you do this, you can then begin to make good decisions that won’t impact your finances too much.

Location

Sure, it’s great when you can buy a huge family home for a very affordable price. If the location isn’t right however then you shouldn’t even look into it as an option. Location is such a huge factor when you are choosing your property. Remember that you can change almost any aspect of the home, whether it involves adding an extra bedroom or even converting the loft to get extra space, but you can never pick up the home and move it somewhere else. If you can’t seem to find a great location then look into the properties that Drew Fasy has to offer.

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Extra Cost

When buyers are working hard to try and set up their budget, they remember to account for things such as insurance payments, tax and even their mortgage. You might not remember to account for things like gas, cable or even electric however and this can really impact your budget. You also need to take into account things like landscaping and property maintenance. You can minimise this cost by working hard to find a property that needs very little improvement, therefore saving you some money. That being said, some hidden costs just can’t be avoided. And while there can be aspects of a property that don’t require many changes, this gives you scope to put your stamp on it, either through exterior renovation or curb appeal alterations, or giving the outside of the property a minuscule makeover, you don’t necessarily have to invest much.

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Compromise

If finding the perfect property means going over budget, then you really do need to reconsider. This is especially the case if you can find a property that is near enough exactly what you want for a significantly lower price. Sometimes compromises need to be made because if you don’t then you may end up overspending on something that really isn’t worth that much money. By being smart with your money, you can be sure to really help yourself and you can also do your finances a favour too.

So, there are plenty of ways for you to really make the most out of your investment, and by putting in the work you can be sure to find a property that suits your needs. The internet is a fantastic place for you to start when you doing your property research, so don’t be afraid to compare neighbourhoods online.

The One Investment Option That Can Suit All

Two of the key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Real Estate Investing and acquiring property have long been key components in the wealth-building strategies of many investors. In some instances, they’re the primary component. While they can be very lucrative, there are several key aspects to consider when going in. The following contributed post is thus entitled, The One Investment Option That Can Suit All.

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Think about how many investment options there are out there today. Now, think about how many of them that you’ve given a go. Investment is just such a wide area to even think about covering in one article, which is why we want to hone in on one of the best. This investment option is one that’s so easy to understand, so easy to make money on, and it revolves around a market that only seems to be growing and growing. So, if you want to know what the one investment option there is out there that suits all, it’s property. We think it suits all because we’ve all had our own experience with the market, it’s just so easy to understand, and there’s so much money to be made from it. The more time you spend around the property market, the more you realise how easy it is to be able to make money from it! So, if you want to invest, have a read on to find out more.

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Why It Suits All

Ok, so this is the first thing that you need to think about. The investment world suits all because there’s a few different routes that you could go down, and you don’t have to think about the most expensive ones. You can actually jump right onto the property ladder with very little money, but come out of it with a nice little profit. Of course, you could then work your way up until you were making big investments, and in turn making a lot of money from it. If you’ve never even brought a property before, we still do think that it suits everyone. All you have to do is speak to an advisor, or read one of the many articles that there are on the internet relating to it. Things such as property flipping are actually so easy to understand. But it’s not just property flipping that you could think of, you need to start broadening your earning potential through property.

How To Start Investing

Now let’s get down to the nitty gritty of it. If you want to start investing, you need to talk to the right people. First on your list should be a realtor such as Frank DiTommaso who would be able to talk you through the common routes people take, and any homes that might suit your budget depending on what route you’re going to take! Then, you most definitely do need to talk to a financial advisor. Someone who can point you in the right direction in terms of money, and make sure that you’re not about to make the biggest financial mistake of your life.

The Benefits You’ll Have

The main benefit is that you’ll be in a market that just only seems to be growing. If you know you’re looking for a get rich quick scheme, then property definitely is the way forward. You’ll also have something to enjoy, and something that you can turn into a lifelong investment that you can keep getting things out of!

Should You Buy To Rent Or Buy To Let As A New Property Owner?

Two of the key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. There’s a lot of power in buying property and getting into the real estate game. When you buy property, you have the option of living in it, or ‘letting’ (renting). The following contributed post is thus entitled; Should You Buy To Rent Or Buy To Let As A New Property Owner?

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Recently we discussed some of the considerations that you need to make before you decide to invest in property. One of the most important choices is whether you buy to rent or buy to sell. Each poses different advantages and disadvantages. So, let’s explore each of these possibilities and think about which one is right for your needs.

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Buying

The first option is to buy and the main benefit is that you can immediately see a financial boost from this decision. At most after buying, you will need to keep the property for a few months. After that, you can resell and hopefully gain a substantial add on to the price you paid.

The other big bonus of buying to sell is that you will not need to worry about the responsibilities that come from letting out a property. Becoming a landlord is certainly not going to be for everyone and the issues that you’ll face can cause a great deal of stress in your life. By making a purchase to sell almost immediately or at least in the first year, you can cut this issue out completely.

That said, there are other problems. If you invest in a new property, then you will likely need to make this investment with a loan. The problem here is that even after you sell, you might not see a significant gain due to the amount you’ll need to pay off in interest to cover the loan.

Instead, you may be better off purchasing a fixer-upper. The issue here is that you can end up with a money pit. As such, you will need to be very careful about choosing the property before you commit to a purchase. There’s a thin line between a property that will be great for flipping and one that will leave you in debt.

Letting

The alternate possibility would be purchasing a property to let. The big benefit here is that you’ll have a long-term additional income for your accounts. You’ll get money every time rent is due which can provide a nice cash cushion.

However, you will have plenty of responsibilities including ensuring that a property is safe. For instance, you will need to make sure that you invest in the right equipment from servicefireequip.com. As you might have guessed, this also means more costs and it’s not just about the changes you will need to make to any property you invest in.

You’ll need to pay for a property management team as well. The good news is that by doing this you can get what is essentially going to be a hands-off experience when investing in property. You won’t have to worry about issues with completing fixes, showing new tenants around or accessibility. All this will be covered by your management team.

We hope this gives you an idea of the two main options when you are investing in property that you can consider. Using this advice, you can decide which one is right for your needs. You can learn more about buying to rent on theguardian.com.

Is Property The Right Investment For You?

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Real Estate is one of the most powerful forms of investment which many people have become wealth from. On that same vein, it isn’t an investment class for everyone. The following contributed post is thus entitled; Is Property The Right Investment For You?

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Property is one of the most popular forms of investment for a reason. It’s consistently shown itself to be one of the most effective investments out there and, if handled correctly, can be a source of some serious revenue. The problem is that this makes a lot of prospective investors assume that make a profit from property is easy. That they will be able to sit back and watch the money roll in from a succession of reliable tenants without having to lift a finger. Now, this would be very nice, but sadly it’s just not the way things work in the real world. Instead, investing in property is an extremely complex endeavour that requires you to commit a great deal of both time and money. Here are three things that any anyone considering investing in property should be thinking about.

What type of property?

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This should be your first question. Before you figure out how much you want to be earning from your properties, you have to figure out what sort of properties you want to invest in, in the first place. There are, of course, plenty of options out there but what you choose will depend on your needs and desires as a landlord. If you’re looking for a high tenancy turnover at highly competitive rates, then consider purchasing student property. Students are an extremely reliable source of tenancy, but they rarely last more than a year or two in the same place. If you want something more reliable, a long-term tenancy with a family or older person might be more suitable. Of course, you should also look at commercial properties. These types of properties can involve more work and investment but can generate some pretty significant returns. Fortunately, there are plenty of places online where you can learn more about the various property options available to you. Just make sure that you do as much research as possible.

Will you need help?

Did you read the last paragraph and start to feel a little overwhelmed as you realized the number of options available to you? Well don’t worry, it’s not the end of the world. Just about every property owner requires help in certain areas. It’s a great idea to find a lawyer who can help you better understand the various options that are out there as well as the kinds of complex problems that you might find yourself coming up against. Not every property owner is an expert in legal terms and revenue codes, so there’s nothing wrong with needing some assistance.

How much work are you willing to put in?

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This is one of those questions that even seasoned investors can sometimes forget. When deciding on a property, you need to ask yourself, “how much work am I able to put into this place?” Depending on the type of property you invest in, you could either be able to let it take care of itself, or find yourself making frequent visits and shelling out a fair amount of money on repairs and maintenance. Always weigh up your initial investment with how much you’ll be spending down the line. If you’re less inclined to make endless repairs on a property then perhaps you should consider making a larger initial investment. If you don’t have the capital to put down, then understand that you might be paying that extra money over the long term in maintenance on the property. The truth is that if you start looking at property investment as some kind of “get rich quick” scheme then you’re almost certainly going to end up either disappointed or in some serious financial difficulty. Being able to successfully invest in anything is a lot of hard work and there are few things more difficult than being able to get a profit out of your properties if you’re not willing to work for it.

What are the risks?

Property is historically one of the more secure investments that you can make. Unlike things like stocks and bonds, the rise and fall of property prices tend to be pretty gradual which means that you’re not necessarily as likely to get hit with a sudden drop in the value of your investment. However, that being said, that doesn’t mean that there are no risks inherent to property investment. The truth is that all investments, no matter how secure they might seem, are going to involve at least some degree of risk. You just have to decide if this is something that’s worth it for you at all. The most important thing that you can do is to keep a close eye on the movements of your investments and understand what the best way to deal with any risks or fluctuations that might come up is. Sure, this is can be complicated and difficult to do but if you’re not prepared to put in the work required to get the most out of your investments, then it might not be the right decisions for you in the first place.

Of course, it’s important to remember that property isn’t the only investment option out there. Whatever you choose to do with your money, it’s important that you choose the right investment options for you. After all, everything from how much capital you actually have to invest in the first place to what kind of time frame you want to be looking at in terms of your investment to how much profit you’re looking to make are going to have a huge impact on the choices that you make when deciding where to put your money. As with just about everything, the key is to make sure that you’re putting as much effort into researching your options as you possibly can. If you’re not keeping a close eye on the kinds of options open to you then you could well end up missing out on something incredibly lucrative or missing a detail that lets you know that you’re about to make a pretty serious mistake.