Posts Tagged ‘making money’
How Investment Property Helps You Retire Early
Everyone is looking for the best way to retire early. We work ourselves to death and still over 90% of the population can’t afford to retire at the age of 60. Why is this? There are many theories as to how to change this, but the decision must be made on an individual basis. You have to decide when you want to retire and plan accordingly. Idle wishing will not accomplish this. Your ship probably will never come in, unless you direct it into the harbor. With so many investments and opportunities to put your money into, what is the best way to retire early? As it has been for hundreds of years, investment property is the best choice.
Unlike other forms of securities, investment property forces you to save. Will you save that much if it’s a conscious decision every single month? Probably not. You have to pay the home mortgage every single month with investment property. If not, you lose the property. This can be looked upon as negatively by some but it is a great advantage to you in the long run.
This advantage is what is referred to as leverage. It is the way that nearly all wealthy people were created. Investment property allows you to leverage other people’s money. What does this mean exactly? A standard down payment required on a home mortgage is 20%. Let’s say you wanted to buy an investment property for $100,000. You only have to put up $20,000 of your own money. However, you get all of the appreciation of the investment property. This means you’re actually making money on $100,000 instead of the $20,000 that you put up. This is a huge difference. It’s not hard to see why this is a great way to make money.
Investment property also requires less risk than other types of investment. If the stock market plummets tomorrow, you’ve got nothing. If your investment property burns to the ground tomorrow, you have insurance. This is a great advantage in itself. Even if property values plummet in your area, the investment property will still be worth something. Land is the only product that you can’t produce more of.
Another major advantage of investment property is the positive cash flow that is created through rent. In many cases, you can pay the entire home mortgage with the rental income that you make from the property. The people that rent it are making your mortgage payment for you and you reap the benefit. When you sell the property, you get the profit, not the renter.
The advantages of investing in real estate are numerous. There is less risk and more reward than almost all other forms of investment. We all want to find a way out of the daily grind of a job. This could be the best way out. If you want to improve your standard of living and retire, look no further than real estate investment.
This article is free for republishing as long as it will include this resource box. Author of this article, Marian Rozwenc, PhD, is a specialist on the field of investment property and auto insurance. For more info go to: [http://investmentpropertylocator.com] or [http://sanantonioautoinsuranceguide.com]
Author: Marian Rozwenc
Article Source: EzineArticles.com
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Buy to Sell Property – Are Flip Sales Still Possible and if So, How?
To flip a property you buy then re-sell almost instantly. There are several different varieties of “Flips” in the Buy to Sell market. However for ease of use, lets talk about Flipping New Build property with a discount.
The three most important factors to consider in Buying to Sell are the Location, The Market you will sell to and the Price. Maybe the most important factor to look at is, are there still genuine discounts around? If you walk into a showroom for a developer and manage to knock 15% off of the list price, what makes you so sure that you could then sell on at a 15% profit? After all, if the developer does that particular deal for you, could you prospective purchaser not simply walk into that same showroom and get that same deal?
Say you buy the last plot on that development, ok now your not in competition with the developer but you are with every other development in the area… and anyone else that has the same idea as you! A similar Buy to Sell investor could have purchased 10 of the same apartments the month before and got a 20% discount; he could sell at 5% below you and still make a 15% profit! As you can see Buy to Sell does not seem to be the simplest way of making money! So how do you purchase a Buy to Sell property bmv (below market value)? Why would the developer sell for that?
Well you’re definitely in a better position if you
- Already have finance arranged
- Are a cash buyer
- Can buy multiple units.
If you are in any of these positions then you are in with a shout. Either because units the developer has pre sold have fallen through and you can complete quickly or because the developer needs to sell multiple units in a hurry!
If you are fortunate enough to be in one of these positions then we can go back to what constitutes a “good deal”, the location, the market and the price are all important.
Firstly the Location, most important is that the average £/per sq.ft. for comparables in the area is noticeably under what you are paying, also important is to speak to agents in the area and ask how quickly the comparable property is selling.
Secondly is the target market, this is simply buying property in an area that lends itself to that particular demographic. If the area is full of students, buying a brand new 4 bed townhouse is probably not the best idea; the market is simply not there for it.
Lastly the price, we have touched on this earlier and in the last 2 points, this really is all important. Due diligence is a must, speak to agents in the area and look out for how quickly the developer agrees to the discount, if you offer 15% under and he virtually bites your hand off this should ring alarm bells. Look at when developers year ends are, contact them about 1-2 months before, this will be when they start to do deals. If the comparables show the discounted price is decent, the Buy to Sell market is not saturated and the developer has not sold half of his quota at that discount then its definitely worth considering!
In conclusion, the Buy to Sell market here is probably the hardest it has been in 15 years and it is definitely a lot more difficult to pick up flip sales, however this kind of market always brings to the top some developers that panic sell, they have a couple of quiet weeks and suddenly worry about their quarterly quotas, for the more switched on investor bargains are still to be had.
Neil Dennis is a partner of Strawberrysoup, a web design agency with offices in Chichester and Bournemouth. Strawberrysoup specialize in creative web design, content managed websites, search engine optimisation, search engine marketing and graphic design
Author: Neil Dennis
Article Source: EzineArticles.com
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Commercial Investing Abroad
Almost everyone wants to own a property or get into an investment overseas. There are more property millionaires in the world now than there ever have been before. Why’s this happening now? Investing in property overseas is currently showing high returns on investments, as well as incredible growth. That’s a recipe for success. In fact, there are plenty of people who are experienced in property investment jumping from one emerging market to the next, making money as they go.
Property is a steady investment, offering more security than some other types. It’s also a growing investment. On average, properties double in value every seven to eight years. If you buy at the right time, and are willing to be patient, you can make a lot. In fact, investments grow even stronger and safer when they’re embedded within the world’s property markets. A lot of the opportunities for investment within the United States have already been taken. In addition, there are now problems with affording property for development, interest rate hikes, and even discussion of crashes. This can make getting into property investment pretty tricky.
On the other hand, development in other countries is fairly new. In many cases, we’ve just begun to scratch the surface. In the past decade, overseas property investments have reached new heights, with overseas developers offering great incentives to get investors’ money into the right projects. So, whether you’re thinking of getting into property investment or are an old hand at it, consider looking into property investment overseas. Looking farther away can help you find affordable, yet profitable properties.
Just taking a look online will tell you that there are a number of nations offering the potential for growth in the property sector that’s profitable and sustainable. Since even the most conservative financial advisors say that at least ten percent of your portfolio should be property investment, buying overseas real estate is a great idea. If you’re wondering how to get started in this great investment opportunity, there are a few things to keep in mind to improve your chances of success.
First, remember that anyone involved in development or real estate is going to slant things in a positive light where they’re concerned. It’s often not deliberate deception, just a part of being positive about your own field. What this means, however, is that what you hear about a particular market is probably going to be biased. Never purchase a property in a country that you’ve not visited, and if possible, visit the property itself before buying. This is especially true if you’re buying for your own use, but even if you’re buying as an investment, you’ll want to be sure that the property lives up to its potential. Don’t just rely on the statements of real estate agents and developers. Your own experience is vital.
You’re only buying what’s in the contract. If you’ve been told that your property will have access to communal amenities, but your contract doesn’t mention them, or there’s supposed to be an attraction such as a hotel or golf course built nearby, you have no guarantee that these things will happen. Base your estimates of profit on what’s available now, not what might happen in the future. This can be hard to keep in mind, since everyone wants to be optimistic about the future of their investments. However, trusting too much in what others might provide can lead to financial failure.
If you’re investing in property overseas because you’re planning to live abroad too, don’t rush into your decision. The ability to stay in a country means that you can learn a lot more about it and its investment opportunities. Some people look around for up to a year, so that they can see the area in all seasons, find out what the weather does to potential properties, and find out what investments are likely to prosper. Taking it slow is the best way to get a great overseas property investment, especially if you’re going to be local.
Remember that markets have cycles. This means that some of them stay down for long periods, some go up to levels that they can’t sustain, and some drop suddenly. Don’t assume that every overseas property investment will necessarily go up in value. Most do, but even properties that are in period of growth will eventually stop rising. At best, they’ll reach an equilibrium. At worst, they’ll go down in value. This is normal. Researching and buying at the right time are the keys to getting a property that will provide you with a great profit. Don’t pin all your homes and dreams on one property investment abroad. You could be disappointed.
Remember that you shouldn’t trust anyone’s word. While it may seem unfriendly to demand everything in writing, you can’t take anything as guaranteed until you have it in an official signed contract. Up till then, there’s a possibility of losing anything you’ve been promised. This means that you should get all details, including water and electrical supplies, written into the contract. Situations overseas may not be what you’re used to. This can provide unusual opportunities, but it can also lead to unpleasant surprises if you don’t get everything in writing.
Investing in real estate overseas can be a great opportunity. Many people are finding that the openness of these markets allows them to get in at an affordable price and still make a profit. Just be sure to go slow, and always know as much as you can about a possible property investment overseas. Don’t take anyone’s word about the contract, property, or area. Get things in writing, and only trust what’s in your contract. If you’re careful and know what you’re doing, you stand to make a lot of money!
Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.
Author: Anthony Seruga
Article Source: EzineArticles.com
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How do I get started in real estate in the entry-level status?
I am wanting to know how to jump head first into the real estate market and get my feet wet while still making money. I do not have any experience what so ever, just a real urge to get into this market! I want to take classes but, I really don’t know what I need to take 1st and I want to start on my associates degree as a at-home work study but, I’m not sure what employers are looking for as far as education in the real estate world other than Business Admin. I hope there are some real estate guru’s on here to help a sista out! Thank you in advance!