Posts Tagged ‘inflation’

It is important for you to first understand why you should invest in real estate. Because once you understand “why” real estate investment is the best vehicle of wealth creation then “how to” is the easy part. It is the “why” that will provide you with the motivation and energy to invest in properties. Without understanding the “WHY” you will never succeed.
 
You have to understand how real estate compares with other investment avenues such as savings account, shares/stocks, commodities & businesses.
 
Rate of Return
 
Shares and stocks are perceived to have higher returns than property and provide hedge against inflation but they pale in comparison to real estate when you take into account the leveraging power of real estate investing and tax advantages of property. It is possible to buy properties by using other people’s money (OPM) with returns that are 20 or 30  or 50 or 100 percent or more per year.
 
Investment Risk
 
If you wish to understand risk then just check what banks are willing to lend their money for.  Are they willing to loan money to buy paintings, antiques, diamonds, mutual funds, CDs, commodities, stocks & businesses? If so to what level of funding? For properties banks will easily lend to 70 or 80 or 90 percent and in some cases to even 100 percent of the value. Banks are the most risk averse institutions and if they are willing to invest in properties up to 100% of value then they consider the investment risk to be extremely low when compared to other investments. You should take your cue from the banks.
 
Buy Below Market Value
 
You must have heard the saying that ‘you make money when you buy’  and not at the time of selling. Is it possible to buy stocks or diamond or commodity or gold below value? When you buy $100,000 worth of stock you pay $100,000 in cash.
 
Investing in real estate after gaining a bit of knowledge, you can buy properties that are 10 or 20 percent or even more below market value. There are many reasons why people sell their properties below value. You can amass great wealth by simply buying property below market value.
 
Increase Value of Investment
 
Can you increase the value of your stock or bank deposit by tinkering with it? There is simply no mechanism by which you can increase the value of your stock or any other investment because you do not control them. However you can greatly increase the market value of your investment property by spending a small amount of money on making cosmetic changes or applying for change of use of the property.
 
Financial Leverage
 
No one has ever become rich without applying the power of leverage. Archimedes rightly stated in 200 BC that ‘Give me a lever long enough and a place to stand and I will move the entire earth.’
 
The financial leverage in the investment world comes from the use of OPM or Other Peoples Money. In real estate investing we buy property  with 10% down and yet we control 100% of real estate.
 
It is extremely difficult to finance other types of investments such as stock and businesses because funding is always an issue. Banks love property because of the low risk and capital appreciation associated with real estate.
 
Leverage can be used for quick wealth creation. If you know how to use leverage you do not need large amount initial capital to start your property investment portfolio.

Praveen Kumar is a real estate investor and an educator whose aim is to help create one thousand property millionaires in next 10 years . He wishes to share his knowledge and strategies on how to create wealth through residential and commercial real estate investment. On his website http://www.real-estate-investment.net you will find hundreds of informative articles, videos, audios and ebooks that will provide you with the leverage of knowledge to accelerate your progress.

Author: Praveen Kumar Panghal
Article Source: EzineArticles.com
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People have become rich or even poor in the business of real estate, some people do not consider the value of real estate for planning their retirement. Many big ways are there to make the real estate lay golden eggs for your retirement and this can be made possible by investing early.

There are many different variety’s of stocks and mutual funds that can mystify even the smartest person, real estate is a very simple kind of dealing that one can invest into. Many of us feel it is very risky to invest in real estate. You should know that there are different risk avenues for an investor to invest in real estate. One important point is that, when you are investing you should consider the properties that have the attention and this tend to move in an upward direction to give you a gain. The maintenance of the invested property is very important to reap a long term benefit to enjoy the rental income for years, which will help you to pay the mortgage and also this can be your retirement home with yesterday’s price rather than today’s price.

Your knowledge about real estate is a very good weapon which you should have before moving into this investment space, your plans about your financial future should be discussed with your preferred financial planner or advisor. The job of a financial advisor is to give you the best guided path in planning your purchases and investments so that it gives a stable and secure financial future. You can also get help from them, in the matters of taxation, cost analysis, estimated inflation, and even an estimated rise in the property value based on its location.

I have already told you early that there are risks involved in any type of investments. This applies even to your investments in real estate. Calculations can go wrong. Sometimes you will land on a juicy property; your job is to have a complete check on the property, and it documents before you make the purchase. You should be aware about your local and state laws, which may apply to landlords. You should also consult with your attorney to get legal advice before going into any deals along with your financial advisor these advices will make your dealing a hassle free.

To build a property investment portfolio, rental properties are not the only way. If you are willing to take some risk you can find a basket of property investment opportunities to invest. In property investing the biggest returns are awarded to the one who is willing to take the biggest risk. You should keep in mind that it is a financial future gamble that you are into. Most of them prefer to go along with rental properties as they are the safe bet, and they pay for themselves while they generate a constant income for you.

Property investment will present you with one more charming forever opportunity called property flipping. Property flipping is a way to make money when you purchase that is you buy a property below market value, of course this property requires some minor makeover. After all the makeover, you sell the property to a sizeable profit. For a beginner, this may be a risky venture and many of the beginner’s loss a big deal of investment in this method. Investors who have the knowledge and skills will make a significant profit by doing major of the work themselves and timely.

With even bigger risks, you can find more property investing opportunities, which are highly speculative known as pre-construction investing. This opportunity has created millionaires and many of them have become bankruptcy. One should be very carefully before stepping into this opportunity of real estate investing by taking care not to invest more than you can chew.

You can see that there are many ways in real estate to make a wonderful financial retirement plan for you and your family. The only thing you have to think is that, whether this kind of investment is in your comfort zone.

SreePrashanth highlights the need to invest in real estate for retirement funds. This is along with his usual advice given on investment, retirement planning, financial planning, internet marketing and work at home

Author: S Prashanth Kumar
Article Source: EzineArticles.com
Provided by: Guest blogger

You have to do a lot of research if you want to buy your dream home. You must educate yourself on the basic procedure of how to buy a house for you or your family. This article may be a good place to start.

You should first consider your reasons for buying a home. Why do you want to own a house? You may want to own your own dwelling place so you can have the freedom to decorate and arrange it the way you desire. You can decide which color you want your kitchen or bedroom to be. You can also change the garden or build a patio. The choice is yours to make.

Another good reason you might have is the fact that over time the value of a house generally increases. The specific value of a house may increase or decrease according to economic cycles. Yet it is a good investment for the future. You will be living under your own roof which will provide you with shelter, security, space and a fence against a conniving thief called inflation.

You can use the benefits of home ownership to save on your taxes. The interest on your mortgage may be tax deductible when you pay your tax return. If you are buying your first home, the property tax may be deducted from your tax payment. You will have to check with your country’s income tax service to be sure which tax deductions are applicable where you live.

Buying a house can be a complicated and stressful experience. It will help you a lot if you have a clear picture of what kind of a house you wish to own when it comes to location, price and design. You have to be reasonable and refrain from buying a house that you may not be able to afford in the future. You can enlist the help of a good real estate agent to help you find houses for sale that you might be interested in. An estate agent can also help you with the whole process of buying a home.

To start the buying process, you need to have the money to pay for a deposit on the house. You will need to pay a deposit of about 10 to 20 percent of the total value of the home you want to buy to the seller. Unless you are stinking rich, you will probably need to lend the rest of the money from a financial institution.

A possible choice might be to get a mortgage from a commercial banking institution. Keep in mind that commercial banks also provide other financial services and that they do not focus exclusively on mortgages. The best source for obtaining a mortgage might be to talk with a few mortgage brokers. They can offer a much wider range of mortgage services to you than an ordinary bank.

The ratio of your monthly income that you are able to spend on the home loan repayment is important. The maximum percentage of your income that you can spend on repaying the loan may be anywhere from 30% to 40%. Obviously, you cannot spend all your income on repaying the debt associated with buying a new home. You have other bills to pay as well.

When applying for a loan from a lender, make sure that you provide all the relevant information. Do not try to hide things, since this may create problems during the home buying process. There are many more things to learn about how to buy a house. Therefore, complete your research into the problems and possibilities of home ownership and try to avoid making serious mistakes.

Searching for news about Bank of America home loans? — Bank of America Home Loans

Looking for information about real estate lawyers? — Real Estate Lawyer

Author: Gert Hough
Article Source: EzineArticles.com
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Having Trouble Selling Your Home?

Then buy a mailbox. That’s right I said, “Buy a mailbox.”

Are you like millions of other Americans who are caught up in this economic crisis and can’t sell your home? You may be one who did not purchase a home during the period when banks were throwing everyone money. You may just be someone trying to sell your home but can’t because of the problem caused by this economic crisis. The main question I want you to answer is, “Are you having trouble selling your home?” Regardless if you are someone who is upside down on your mortgage or just someone who is just trying to sell so you can purchase another home or just needing to relocate. No matter what side of the economic crisis you fall on, everyone is in the same “boat” if you are trying to sell your home and that boat is rocking badly.

It is very difficult to sell your home during a time when homes are in a huge supply. And for the first time in a long time, not only are homes at a huge supply,  money is no longer as accessible as it used to be. And what makes matters worse, everyday your home is on the market you are losing money. Each day that your home does not sell requires another day of inflation to take a smaller chunk out of your profit. Not only that, you will eventually have to reduce the price you are trying to sell your home for just to be able to get out of the boat which everyone else who is trying to sell their home is in. Your objective is to get out of this rocking boat, only you can’t because everyone in the boat has the same product you have and wants the same thing you want.

In order to get out before anyone else, you have to be different. You have to do something that no one else is doing. You must be innovative and do it without losing thousands of dollars of your equity. So what do you do?

Buy a mailbox. That’s right, I said it again. I said, “Buy a mailbox.” But why should you buy a mailbox? Let me ask you to do something. When you go home tonight and you drive into your home, look at your home from your driveway. What is the impression you get when you see your home from the curb or street? In my article,”Can a Mailbox Really Do That,” I explain why curb appeal is so essential. If you want to sell your home – you have to sell it from the curb (extra bold exclamation point emphasis added)! You must think outside the box (or in this case; the boat).

Most people redo their floors, repaint rooms, and may even remodel. However, if you cannot get someone to stop at your home because your home’s curb appeal is bad, it does not matter what the inside of the home looks like. Selling your home starts from the curb. You need to first get the potential buyer to stop and then they must want to come in. If they do not feel warm and fuzzy from the curb, then you have lost the potential buyer. These are facts and unfortunately homeowners who try to sell their homes are not getting out of the box and becoming aware of curb appeal. This results in having to stay in the boat with other homeowners who are drifting nowhere.

Buy a good quality mailbox that enhances your home’s curb appeal. Enhance My Curb is a website that sells the #1 rated cast aluminum residential mailbox on the market and we want to help you get out of the boat and out of the home you are trying to sell.

Enhance My Curb is a website that is committed to enhancing your home’s curb appeal. Please visit us at http://www.enhancemycurb.com

Author: Jason Mulcahy
Article Source: EzineArticles.com
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To get a building constructed can be very easy if you follow these steps I will be explaining to you. Before you begin at all or planning to do anything is better you know what is involved on that thing, and in your plan know how much you are going to spend,and you need to know the numbers of people you’ll be using so that you don’t end up paying people on your site that didn’t work for the day.

There are stages in building constructions that you must follow and requirements of labor varies but have it in your mind that anybody you bring to your site, work or not, they will have to be paid. And in case your first plan doesn’t work you can try another one.

A lot of books are out there advertising new innovations on building, you may be surprised to find out that what you need right now are right in those papers , and you have more opportunities of alternatives.

The reputation of your professional or contractor; how honest is he and which of his past jobs can he point to? who can stand for him, or recommend him to carry out your job. Make sure this person is actually qualified for the job.

Whatever you estimate, our economy is besiege by unending inflation, you will always be expected to spend more at the end of the day, so earmark 20% of the estimate for your building for exigencies, though make sure you don’t stretch your budget to the limit, or what is the essence of a shelter if you don’t have money to provide food for you and your family?

It is important you approve your building plan because of future occurrences, the government can decide to turn your building to a road, what will you use to fight back or at least be paid compensation for your property. If you are a businessman with an approved plan you can turn your property as a collateral to obtain loan from the bank to help your business.
You and your contractor must have written agreement on a specific task he is to
perform and also documents amount you pay him and always let him sign under to confirm amount of money you have paid to him, if you fail to do this, the probability is very high that you’ll quarrel over money with your contractor as the job progresses. I have seen several cases of this. If you feel what he’s charging is a bit on the high side is better you price lower and find out how your building will reflect the amount of money you are paying. Though the cheapest price is not always the best and the cheapest at the long run may end up being the costliest.

The safety of your workers on site is very important to avoid disaster let your contractor stipulates his health measures for his workers especially in a large building.

When you are not sure of a step you are about to take, please don’t hesitate to ask the professionals before you embark on it, it may ruin your plans when you don’t seek advice, and local contractors and professionals can be of immense benefits also when you need them at short notice. Remember you are employing and creating a job by giving out your project to be managed by a professional who may actually be your friend, but in this case this is business and should be treated as such.

When purchasing materials, always go for the best quality and don’t hesitate to ask for discounts, you will be shocked by the amount of money that will be returned to you.
When your contractor is offering you a deal that is too sweet to your hearing and too generous to your purse then you may be heading for disaster. Building work is not always as smooth sailing as some people will make you believe.

You can also save cost unknowingly when you build the biggest possible size you can afford as it will cost less if done at the initial stage rather than as extension later on especially when you are sure of your capabilities.

There is no need for being unnecessarily apprehensive to get your building completed very fast, be patient to watch out for favorable weather when building and also give room for waste management, so that you don’t end up having no space for your septic, refuse and other wastes. Whatever kind of material you are purchasing make sure they will be ready when you need them and always make sure of the presence of services on the site before you purchase them.

Where you keep your materials is also important, are they safe? Using an artisan (bricklayer, carpenter, welder etc) to do the job of a professional like Architect, Structural Engineer etc. is not advisable on your site make sure everyone is qualified for the job at hand and don’t allow any contractor to decide for you because you are the boss and pay only when the job is satisfactory however, don’t cut corners because it will cost you more later.

You can get the best quality of materials in Nigeria, you may not need to go abroad for this, don’t accept poor quality material or workmanship for your job.

Omion Emmanuel is an architect that has great passion for online marketing, He uses the medium to teach young Nigerians on how to effectively build,manage and supervise their building projects.

He is more at home with construction industry of his native country Nigeria.

He specializes in Residentials and Bank building design and Construction.

He is best called Nigerian online building management pro.

[http://www.buildingcontractorsecrets.com]

Author: Emmanuel Omion
Article Source: EzineArticles.com
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Let’s say I need money and I want to sell my real estate notes. There are several advantages to cashing in on my debt contract – I can avoid inflation, access my funds anytime, and get rid of the hassle of monthly collections. When you need extra cash flow, selling debt instruments is far more convenient than taking out a loan.

The first step in selling any debt note is finding a note buyer. The note buyer will assess the note based on the balance, interest rate, the payer’s stability, and other factors that contribute to the risk it poses. Because the buyer takes on the risk of the agreement, you can’t expect to get the full value of the note. For example, when I sell my real estate note worth $80,000, I might get about $75,000 in cash. The $5,000 is the cost of the risk I transfer to the buyer – the risk of inflation, of rising interest rates, or the payor defaulting or going bankrupt.

Most people simply sell the whole contract, but it’s also possible to sell just some of the payments. This can be a good option if you don’t need a large lump sum, or if you want to keep getting monthly payments. Or if I like the current interest rate on the contract, I can sell my real estate note partially and keep earning the same interest.
Another alternative is to sell my real estate notes in full, get part of the lump sum, and receive the rest in monthly installments. There are many other ways to structure the sale, and your note buyer should discuss all of them with you.

There are lots of note buyers willing to buy out contracts, but they don’t all offer the same rates. I wouldn’t sell my real estate notes to the first buyer who comes along; it’s best to consult different buyers and compare their quotes before settling on a deal. Most buyers will give you a quote for free, although they may charge for the appraisal and title policy. If they charge any other fees, just find another buyer – chances are they’re not stable enough to offer free consultation services.

There should also be no closing costs, points, or other associated fees throughout the transaction. Any fees involved are supposed to be paid at the time I sell my real estate note, and not midway or after the deal.

Also watch out for the “bait and switch” buyers who force you into a cheap deal after you’ve sold the contract. Basically, I sell my real estate notes for a decent price, but the buyer lowers the price later on because my property buyer allegedly had low credit. This is a highly unethical practice – the buyer is supposed to review your payor’s credit upfront.

Lastly, make sure to document the whole deal. It’s very risky to sell my real estate notes without a written purchase agreement to back it up. Put down in writing every detail of the sale, and be sure to understand all the terms and conditions.

Selling your real estate contract is a great way to raise money without the hassle of bank loans. As long as you find a good buyer, cashing in can prove much more profitable than waiting for monthly payments. Besides, you can do a lot more with cash than you can with a contract.

Jamie has been working in the finance industry for many years and is a contributing editor to http://www.selling-your-note.com. If you’re wondering how to sell my real estate note you can find out on our site.

Author: Jamie Sherman
Article Source: EzineArticles.com
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