Posts Tagged ‘incomes’

There is good news ahead for rental incomes, as we know through the government stimulation package, which included tripling the first home buyer’s grant this resulted in reducing the number of renters. However this is about to reverse.

The commentators tell us In 2010 we will see some excellent rental income growth. This is good news with increasing interest rates. There is one positive in having to pay higher interest rates and that is it means that the regulators believe the economy is gaining in strength and therefore property values will increase.

Why is residential property such a good investment right now?

There are three key components that continue to make residential property the ideal investment vehicle.

1. Interest rates are still at historic lows

2. Supply and demand factors favor investors

3. Residential is the most favored security by the banks

Choosing the best investment property is a process that involves knowing what you want to get out of the investment.Finding real estate that will allow you to reach those goals in the most efficient and effective manner is the objective.

Since Residential investment properties come in several different types and are found in a variety of forms and locations, knowing what you want is key to success.

In considering that the timing is correct based on the three points above we then set our objectives for our investment strategy.

If for example we concluded that we wanted a long term set and hold investment strategy for say ten years then more options open up. For example a new subdivision which had some compelling future prospect or attraction may be considered.

Where as if your objective was to make money and sell within a year or two then this would possibly not be your investment vehicle of choice. Decisions around risk, leverage, personal time involvement and time to realise ones return are the factors one needs to consider in selecting the right property investment strategy.

So the message in this article is to suggest that whilst the timing is right your returns can be significantly improved, simply by selecting the right vehicle for your personal investment objectives.

Property investment consultants are available just like a stockbroker lives and breathes shares; property investment consultants live and breathe property.

The key is to select a consultant who specilises in a location that you want to invest in and also the sector of the market you wish to participate. A good quality property investment consultant will not only ensure their fees are covered in their negotiations on the property but also you will be assured of getting the right property that fits your personal objective. Employing a property investment consultant also removes any potential emotion from the equation which can creep in particularly with residential property investments.

Seeking quailty council makes good sense learning from others saves time and you gain quailty knowledge for your next investment

Enjoy the process.

This Article was written by Phillip Mollard
Director of Mollard Property investment Consultants P/L
http://www.mollard.com.au

Author: Phillip Mollard
Article Source: EzineArticles.com
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You would be much delighted if investment of your hard earned money pays off. A sound planning is essential while investing your money in the real estate because of the ups and downs in the market. It thus becomes necessary to get sound property investment advice before you plan to investment in the real estate. You need to take into account various factors like rising prices in the market, shortage of rental properties, demand for properties in a specific location and more before devising your investment plan.

Planning

You should study and monitor the market with utmost care as it will help you in understanding the position and direction of prices in the properties market. Understanding this is very crucial as the prices vary consistently. It will also help you to estimate the actual value of proposed property investment by monitoring the market. Apart from that, you also get an idea on the future of the investment and mortgage dealings.

Various Aspects of Investment

When you wish to invest in a property, there are certain peripheral expenses than the actual cost. Real estate investment gets taxed according to its value. This is over and above the money spent for the maintaining and repairing the property. You will have to take into account all these factors when you actually project the incomes and resale value for the proposed property. Positive or negative gearing means the profits or the loss incurred from the investment. The additional income also gets taxed while the deductions are from the surplus amount and not the bare minimum amount.

Multitask with Equity

You can arrange sufficient capital for your new investment from the real estate equity which you own already, which is advisable instead of going for a financial assistance from a bank. This method is an ideal way to start your new investment. But you have to allocate only certain percentage of the price for new investment if there is no problem in repayment.

Identify and Pool your resources

Quite often, it becomes difficult for a new investor to completely own a property with his money. It is not possible always to fund for the entire investment from your pocket as most are common investors. Hence, using the collective property deal is a better and wise idea. Identify likeminded friends, family, relatives or colleagues and pool your resources in order to fund the investment in a new property. But ensure to make an agreement among your partners regarding the method of sharing the benefits and losses, so that there would not be any hassles in the future. It is advisable to go for a legal agreement depicting the proportion of investment and sharing methodology to prevent problems. Sharing of benefits or liabilities is generally proportional to the investment ratio.

Help from Professionals

A professional counselor or a real estate agent can provide you the required Property investment advice to plan your investment methodology. They will also assist in assessing the scope and future value of your investment as they have more knowledge about the market.

Join Forces with Our Nationally Recognized Real Estate, Mortgage, investment Financing Experts to Navigate the Current Market to Earn Record Profits. Visit our advisers now at http://www.realestateadvicepros.com/

Author: Tom Wee Arnold
Article Source: EzineArticles.com
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Why is there cheap real estate? Is it just that some sellers don’t know what their property is worth? Sometimes this is the case, but only rarely. More often a seller is willing to sell for less because it means selling faster or more easily. In other words, sellers will trade a little equity for a fast sale or peace of mind, as in the following situations.

Ten Cheap Real Estate Motivators

1. Death – After the death of a loved one, family members may want to sell any real estate cheap to be quickly done with the bad memories, or to get their inheritance faster.

2. New Job – A job transfer or new job can give a person a lot of motivation to sell fast, and therefore sell cheap. Often, the seller will end up with two payments, and you will be helping by taking one off his hands.

3. Divorce -  When people divorce, sometimes they need to sell to settle things, and the faster the sale, the sooner they get to be done with it all. Also, sometimes neither one can afford a home that was being paid for with two incomes. A fast sale prevents late payments and credit problems.

4. Behind in Payments – If a seller is already behind in payments, he or she is facing possible foreclosure. Selling to you at a discount is preferable to losing a lot more equity in a foreclosure.

5. Back Taxes – In most places an owner has to be more than a year behind on property taxes before he faces losing the property. If he is close the the deadline, however, you may get a deal. Just be sure you take into account the taxes that have to be paid.

6. Absentee Owner – It is difficult to deal with a property from a long distance, especially rental units. These sellers often get to the point where selling fast and regaining peace of mind is more important than getting full market value.

7. Income Problems – Whether due to a lost job or declining business, a seller may no longer have the income necessary to keep his home or other real estate. He may need to sell fast to avoid further financial problems.

8. Negative Cash Flow – It doesn’t make sense to lose money on real estate every month, so sellers with negative cash flow may drop the price to sell fast. Just be sure that you have a plan to increase that cash flow once you own the property.

9. Damage – This is one of the most common reasons for cheap real estate. The walls have holes, the roof needs replacing, and the cats peed all over the carpets. Fixer-uppers always sell for less, and the scarier they are the cheaper they get. But be sure you know what you are getting into.

10. Sudden Cash Requirements – Sometimes a seller has a better investment or other reasons to need cash fast. For example, selling fast might prevent him from losing another property to foreclosure, or it might mean getting into an investment that will make him far more profit than the little bit of equity he loses selling cheap to you.

Other reasons people sell below market value include sickness, partnerships gone bad, bad tenants, excess debt, and any number of changes in people’s lives. Remember, however, that the immediate reason for a lower price is to get a faster or easier sale. To get cheap real estate, then, make offers that close fast and easy.