Posts Tagged ‘property investment’

Most people, at some point when considering building for their future, will consider investing in property and there are sensible reasons to invest in property, and then there are not so sensible reasons.

For example, right now we are experiencing the “bursting” element of that famous property bubble so if you’re choosing to get started in property investing at the moment, you must question whether you’re getting involved for the right reasons, or, with the right strategy. If you are considering property investing for the “right” reasons – and you know your risks – there is every chance that your property investment will be a profitable one.

In the current climate, it’s prudent to look at some of those “right reasons”.

1. Speculating or Investing

Land Banking, is SPECULATING, with the exception of buying land, with planning permission, specifically to build something. Investing in property to collect rent is INVESTING. Take a look at SPECULATORS who bought up dotcom stocks around 2000, and lost all their money when the underlying companies never did any business, and the SPECULATORS lost everything. Then take a look at INVESTORS who bought commercial property with high rental yields and collected the income whilst their assets rose in value. INVESTING is safer and smarter and it is vital to know the difference, although the odd speculative gamble here or there never hurts as long as the risk is calculated and acceptable.

2. “Property Values Will Always Rise – in the Long Term”

Don’t believe this dangerous myth! Over the last ten years property prices in Japan have fallen by nearly 60%. At present property markets the world over are suffering monthly losses in capital values. Expecting your property investing to go up in value is a mistake. Making sure you are buying with good value and ensuring your property investment makes sense from a positive-cash-flow perspective is essential in terms of knowing your risks, if you aren’t aware of these things then you are SPECULATING again. If the value of your property investment falls, you can sit it out and wait for a rebound as your cash flows are positive. You should consider any capital appreciation to be a happy bonus when it comes to speculative property investing.

3. Getting Started in Property Investing with Residential Property

It’s can be easier to understand, purchase, and manage than other types of property such as commercial. If you already own your own home then you have some experience of the purchase process etc. If you venture outside of your field of knowledge, take some advice.

4. Truthful Real Estate Investment Advice: Don’t Believe Everything You Hear or Read

Estate Agents have a vested interest in parting you with your capital. So they will generally give you the best bits, not the cold harsh reality. At David Garner Consulting we only ever recommend an investment to a client if we have made that investment ourselves, with our own money. And our property buying syndicate allows investors to take part in a bulk purchase along with other investors to help negotiate Below Market Value prices and other preferential terms. E.g. We will source a developer with completed houses he needs to sell, we will offer to buy 10 and negotiate a price between 15% to 20% below the valuation and ten members of the syndicate, including ourselves, will buy one, giving each individual the buying power of ten.

5. Where To Buy

Yes I know, location, location, location! And to an extent it’s true, but don’t forget that I have seen some stunning locations with over-priced, over-supplied property that won’t rent or resell for a profit. Remember the location does not mean you have to like it, I have bought and sold property in some horrible areas, but I’ve turned a healthy profit on each and every one.

CLICK BELOW to download your FREE GUIDE to property investing

http://www.davidgarnerconsulting.mfbiz.com/investingguide

David Garner is Managing Partner at David Garner Consulting and Senior Portfolio Manager at BRIC Group.

Author: David D Garner
Article Source: EzineArticles.com
Lowest price PCB Prototype

When it comes to property investment, many people start with ‘what they know.’ This means buying a property, renovating it and then selling it on at a profit, or buying a property then letting it out.

However, once you have some property investment under your belt and before you look to do ‘more of the same’ then it’s worth making sure that your next investment(s) work in good and bad economic conditions, perhaps deliver a return at different times or in different ways to your existing investments. So what does your property investment deliver at the moment? Not sure? Then write down the following:

What have you invested? Don’t forget to include all the costs you have incurred from legal fees to surveys, required certificates (building control sign; gas safety certificates etc), any agent’s fees as well as large sums such as deposits.

What have you earned? Calculate what your investments have delivered to you to date. Increased capital? Net income?

Work out the return – Then take the total amount your investments have/are delivering to you and divide this by the amount you have invested.

Check this against other potential returns – If you are investing in residential buy to let, check the returns you could be getting against commercial investments. If you are doing renovations, check what you could get if you bought land and built a property. Even better, check the buy to let returns against building a property and then renting it out.

Always check your investments against your exit strategy! It’s not easy to work out whether an investment works for you unless you have a clear exit strategy. Make sure that you know what you expect your properties value to increase to, what income you need to make it worthwhile holding on to your property asset.

Understand market conditions! Also be clear on what’s happening in the market. Some people worked out that selling in 2007 at the height of the market was a good idea, they are the ones investing back in the market now as they have the cash to do so.

Having done your research you may find something that gives a better return to your investments. However you also may decide to ‘carry on with what you know’. Either way, at least you will have done your investment due diligence and know if there is a property investment opportunity that makes sense to add to your investments or not!

I am one of the UK’s top property experts being regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express and have appeared on BBC2, featured on BBC Radio 4, Channel 4 and a number of local BBC Radio stations. I have been a consultant to the property sector for a number of years and renovating properties for over 20 years. I have also written a number of books, including four for Which? – Buy, Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.

For answers to all your property questions, contact me at Designs on Property on 0845 838 1763 or visit our website and blog using the links below:

http://www.designsonproperty.co.uk/
http://factsnotheadlines.blogspot.com/

Author: Kate Faulkner
Article Source: EzineArticles.com
Programmable Multi-cooker

Reputed investment organizations are now a days working on various investment opportunities for the prospective investors. One of these opportunities is property investment which is growing popular all over the world. Investing in property is generally the buying of property with the purpose of generating financial returns. It is one of the most promising and safe forms of investment. One can buy a land, a warehouse, a flat, an apartment or a commercial or industrial building for this purpose. Investment in property can either be a residential investment or a commercial investment. The reason behind the boosting up of real estate business, no doubt, is the large amount of profits one can make by investing in properties. Other than this there are various other factors responsible for the steady growth of this sector and they are:

o Highly beneficial venture
o Development, globalization and changing global trends
o Better living standards and increase in Gross domestic product(GDP) of many countries
o Rapid increase in world population
o Better education and higher salaries and income
o Relaxed and liberal government policies.

These profits are generated through either rental income or capital growth or both. The profits from property investment depend upon the selection of an appropriate property. Before taking a decision regarding which property to invest in, one should:

o Meet and consult property brokers
o Research the market thoroughly
o Get the property to be bought, evaluated by the qualified experts.

Half the battle is won, once the property in selected, other half depends on how to finance the property. Banks and other financial institutions provide home loans and mortgages for this purpose.

One should plan the use of property purchased, well in advance to avoid certain unexpected situations later on. The purpose of investing in property is not only adding it as a passive investment but also to earn with your investment. Thus, one should keep in mind all the pros and cons before investing in any property. While buying a property, the location of property plays a vital role. It should be easily accessible to amenities like super markets, grocery shops, shopping malls, parks, sports complexes etc. Properties on a prime location always prove to be fruitful investment and are likely to be sold or rented out easily because of their high demand.

Well maintained and clean property helps one in fetching good clients and a steady income. Another way to have a steady income from your investment property is to look for good property agent and charter out your property to him. He would take care of your property and keep on giving you a fixed monthly income. This way, one keeps getting monthly returns without any hassles like maintenance of the property and finding out a tenant.

For any help on Investing in Property, check out the info available online, these will help you learn to find the Investing in Residential Property an instant go!

Author: Fionag Endus
Article Source: EzineArticles.com
Android Smartphone

1. Why do it?

Owning a home or to use one of the most common cliché “to have a roof over one’s head” goes back to the notion of fulfilling the most basic of one’s need and livelihood. To most families, working towards eventual home ownership provides a sense of purpose, belonging, physical security and well-being.

On the other hand, there are also individuals and families who may be long time renters, either by choice or otherwise. Given the complexity of today’s financial and equity markets, it is important to appreciate there are a multitude of investment options available to the investor and property investment is merely one of many.

There are also investors who may alternate between owning and renting over a period of time in an attempt to maximise their return on investment. The choice between paying mortgage and paying rent may be dictated by a number of factors such as property market trends, interest rates, personal circumstances and preferences, risk aversion and government policy.

By far the majority of people who get into the property market buy their first home which they intend to live in. Rather than living with family or paying rent, they see that paying down a mortgage to own a home will provide the long term financial and physical security.

Beyond this first home ownership, investors who buy a second property do it for a variety of reasons. Some investors take a long term view of property and see capital growth as a good return on their investment. Yet some others may be in steady and high paying jobs and use negative gearing as an avenue to minimise their tax liability. There are business people who buy commercial or retail property to assist in growing their businesses where expenses incurred from owing the property are tax deductible against their business income.

Therefore, the would-be property investor needs to be clear of his or her financial and investment goals and the reason for getting into the property market.

2. What to buy?

he type of real estate may consist of vacant land, residential property which may include houses, apartments, commercial property and industrial property.

The main factors which influence and determining the type of residential property to buy include the following:

a) Budget ~ houses are generally more expensive than apartments

b) Personal circumstances ~families will generally prefer living in a house than an apartment while singles and couples may find apartments a more conducive to their lifestyle needs

c) Personal preferences ~ your personality and lifestyle preferences will influence your choice of location, demographics, public amenities such as schools and transport

d) Yield ~ apartments will generally return higher yields than houses and vacant land, easier to maintain and offer higher security for occupants

e) Capital growth ~houses and landed property will generally command higher capital growth than apartments over the long term.

3. How to buy?

First and foremost, investing in real estate is a long-term venture. When contemplating to invest in property, you must be certain you are able to afford holding the property over the long term (a minimum of five years) due to the general nature of real estate being an appreciating asset. In general, capital growth in property only comes with time and you must have the cash flow to support and maintain the expenses of your investment property.

Buying your own home is usually the first big investment many people make in their lifetime. However, your first investment in property need not be your home. Many young people are now choosing to make small investments in property while staying with parents. It is the hope that these small investments will eventually fund the purchase of their dream home.

The most basic step in considering your first property is to ascertain your budget, that is, how much do I have to put down as a deposit (usually 10% of the purchase price of the property if you are successful in securing a home loan) and the associated costs such as stamp duty, legal fees and initial outgoings. I would allow for an additional 5 -10% of the purchase price, depending on the type of property for these additional acquisition costs.

Saving up spare cash and getting financial help from parents are among the most common ways towards a deposit although first home buyers are now using new ways to find that first deposit such as sharing with siblings and friends.

4. Where to buy?

The choice of location is by far one of the most important considerations in property investment. Properties which are close to public amenities such as transport, hospitals, shops, local attractions such as beaches, ocean fronts, parks, cafe and restaurants will usually attract both owner-occupiers and renters alike.

However, your needs and preferences as an owner-occupier may differ vastly from the needs of a tenant. One way to determine the location of your property is to ask yourself whether you are buying the property as your principal place of residence (PPOR) or as an investment. Putting yourself in the prospective tenant’s mindset will also provide good insight as to the type of property and its location.

5. When to buy?

When to buy is far less important than actually buying, a common situation where investors procrastinate for the market to fall in order to find a bargain. During a soft market, some investors are inclined to wait for prices to fall further and when prices start to rise, they think that they should have bought earlier, all the time missing opportunities to enter the market.

History shows that property prices have doubled on average every 7 to 10 years over the last 50 years. Taking this past trend into account and the impossible task of knowing when prices are at their lowest point, it is best to say that “Now is the right time to buy”.

Hi, my name is Albert Wong and I live in Sydney, Australia. I was unfortunate enough to be trained as a CPA and have working in finance and corporate planning for many years. I’m an avid collector of bonsai and wine and I like cooking and entertaining friends at home. I trying to follow my wife’s passion for writing although I’m pretty mediocre. I play the piano when I’m free and my favourite music is Chopin, Rachmaninoff and Gershwin.

My current website is http://wealthruproperty.com

Please feel free to drop by and say g’day! Cheers.

Author: Albert C Wong
Article Source: EzineArticles.com
Low-volume PCB maker

The rise in the buy-to-let residential investment market in recent years has been accompanied by the appearance of the so called ‘property investment guru’. These ‘gurus’ spend all their time instructing property investors how they too can make millions out of investing in residential property.

As an experienced residential property investor I am instantly suspicious of anybody that appears to want to tell you how they made a million and how you can do it too. The question is always why if you have found such a brilliant way of making money would you want to share the secret with a whole load of potential investment competitors?

What’s in it for me?

The answer is normally that these property investment gurus are trying to sell landlords something and make money in the process. Most property gurus have traditionally tried to sell residential investment property for which they will receive a commission from the seller or the property development company.

Some of these property gurus are currently trying to ‘flog’ investment properties to UK investors sourced from the United States.

The ‘property investment guru’ markets the attraction of these residential investment properties to landlords as being property investments that have:

* An unbelievably low price.

* A headline rental yield in double figures.

* A potential of uplift in the capital values that might occur as the area improves.

UK & US property ‘chalk & cheese’

On paper these residential investment opportunities may seem appealing. However, anybody that knows anything about the US and the UK residential investment property markets and planning systems will know that they are very different property markets.

What anybody may say about the UK property market is that it has one thing in it’s’ favour. As Mark Twain famously advised “Buy land they are not making it anymore”. He clearly had the UK in mind when making this comment. It is obvious to any UK resident and landlord that we live on a very crowded isle where land supply is restricted. This is particularly true of development land, which is constrained by a restrictive planning system and the Green Belt. These facts means that development land and therefore property will always be relatively expensive particularly when demand for accommodation from owners, renters and investors driven by high levels of immigration is so high.

In the United States the land market and planning system is very different.

* They have much, much, more of it.

* They don’t have a green belt or a planning system that is so restrictive, their system relies on zoning and then releasing big chunks of development land on the fringes of towns and cities.

* Land can be very cheap.

This means that U.S. towns and inner cities have suffered from inner city dereliction and decay far more than in the UK. The middle class residents of a town moving to a new suburb leaving great sways of the old town and city to the working poor or crack dealers. Property in these locations may be ridiculously cheap but don’t expect an urban regeneration miracle any time soon.

Property Guru warning
Any landlord looking to follow the advice of a ‘property guru’ needs to stop and think first, what are their motivations?

Property investors should make sure not to get caught up by a guru’s flash car, confidence, swagger, promises and pictures of a bright and wealthy future.

Instead what property investors should do is:

* Do as much research themselves. Use the Internet to dig around and find out about the gurus proposition and their background. Could it well be that the guru is not quite what they make out they are. Have they been in trouble with the law or their professional body.

* Try and understand why residential investors closer to the proposition aren’t ‘snapping’ up the investment opportunity. For instance if the investment proposition is so strong in the US, the heart of global entrepreneurship then why aren’t all the local landlords and property investors falling over themselves to buy such great property investments.

* Ask the most pertinent question. If these residential investment properties are such great property investments why are they not keeping quiet and buying them all themselves. To which they may reply that; ‘they don’t want to be greedy and that they have enough money already’. In which case you may want to suggest that they refund any commission that they receive for their sales.

After this careful research by a landlord it may well be that the residential investment proposition, and indeed the ‘property investment guru’ is not all they seem to be.

Chris Horne is an experienced landlord and property professional who now runs the website Property Hawk, a site aimed directly at UK Landlords. The site incorporates free property management software that enables landlords to track all their financial data relating to their portfolio. It allows users to print tenancy agreements and other forms FREE FOREVER. The site generates a real time rent book for each property as well as calculating a landlords tax liabilty. The service is totally free to use at propertyhawk.co.uk

Author: Chris Horne
Article Source: EzineArticles.com
Canada duty rates

Overview

There are no restrictions on foreign nationals investing or buying real estate in South Africa. Indeed, for generations, foreign nationals have been very active in the real estate market in South Africa.

As will be discussed more fully later, real estate in South Africa actually is known as or termed immovable property

Investment Property in South Africa

The investment real estate market in South Africa has been profitable for foreign nationals for years. There were some tentative times directly after the end of Apartheid in that country. However, as time has marched on from the period of transition, foreign nationals have carried forth in their investment in South African real estate — immovable property — on many fronts.

By way of example, foreign nationals play a significant role in the ownership of real estate or immovable property in the commercial sector. Foreign nationals own everything from office buildings to hotels and resorts.

There are no restrictions on the types of real estate that a foreign national can invest in within South Africa

Residential Real Estate in South Africa – Single Family Properties

Many foreign nationals have taken to purchasing some fairly high cost properties in South Africa. These men and woman have purchased these costly residences to be used as second homes and for holiday or vacation purposes. Many people — including a significant number of Europeans — regularly take extended holidays in South Africa. Since the end of Apartheid, a greater number of people from across the globe are taking to spending extended holidays in South Africa. This includes an ever growing number of North Americans, Canadians and U.S. citizens alike.

The single family dwelling market is fast moving and brisk in many different areas of the country. Not only can foreign nationals be found investing in these types of residences in the more urban centers in the country, but they are making purchase of these types of property in rural areas as well. As will be discussed, many foreign nationals enjoy making an extended holiday stay in South Africa (and have done so for many years). Thus, many of these foreign nationals have been interested and continue to be interested in buying single family residences — and at times very substantial properties — in urban and in rural regions of the country where they can live for a portion of the year.

Residential Real Estate in South Africa – Apartments

Because of the high rate of foreign investment in all sectors of the South African economy, many foreign nationals regularly can be found purchasing apartments in the major urban centers in that country. These foreign nationals find themselves in country for more extended periods of time. These men and women find the purchase of apartments to be an economical manner in which they can provide themselves housing during their time in South Africa on business.

There has also been a brisk business in the buying of apartments in resort communities by foreign nationals. Many foreign nationals are taking a two-pronged approach to buying apartments in resort venues. First, they are using these properties for their own holiday purposes. Second, they are letting out these premises to other foreign nationals when they are not personally using the property. Many foreign nationals have found that they can make a tidy sum by renting or leasing an apartment in a resort locale during that part of the year when they are not personally in residence in the resort community apartment.

Holiday Property in South Africa

For generations, Europeans and men and women from other countries the world over have made South Africa a holiday destination. Indeed, the history of people from Europe and elsewhere around the world making long and extended holiday stays within South Africa is long and legendary. As a consequence, the market in vacation or holiday real estate in South Africa is well established.

For the foreign national interested in purchasing vacation or holiday property in South Africa, the options and opportunities in regard to such property is extensive and varied. A foreign national has the ability to purchase anything from a high priced villa in a trendy resort community to a snug and tidy apartment in a sprawling urban setting to a lovely chateau in a rural area in the country.

A number of foreign nationals have taken to investing in different holiday and resort properties. Indeed, foreign nationals have been active in the development of hotels, apartments and free standing dwellings that are leased or rented to people who have traveled to South Africa on holiday. Overall, this type of investment has proven to be very lucrative for many foreign nationals from different countries the world over.

Specific steps to buying real estate property in South Africa

In South Africa, the laws governing the buying and selling of real estate actually are called laws governing the buying and selling of immovable property or land. At the present time, there are no restrictions on a foreign national buying and owning real estate in South Africa. Indeed, foreign nationals have bought and owned real estate — immovable property — in South Africa for generations.

Generally speaking, the buying and selling of immovable property or real estate in South Africa is governed by decisions of the courts of that country. The one area in which statutory law does play a role when it comes to buying and selling real estate/immovable property in South Africa is in the area of the ownership of mineral rights. When it comes to mineral interests that might be underneath the surface of a particular piece of property, that interest as a general rule belongs to the “people of South Africa.” In other words, even though a foreign national may be able to buy real estate in that country, more often than not a foreign national will not be able to easily purchase a right to extract minerals from that real estate. (Of course, a contract can be entered into with the government that will grant an individual of business the right and the ability to withdraw minerals from underneath the surface of land.)

Because there are some tribes that exercise some degree of local autonomy in South Africa, some foreign nationals wonder what impact these more or less autonomous governing authorities might have on their ability to purchase real estate. Historically, local, tribal or customary law had little impact on the buying and selling of real estate in South Africa. However, in recent years, the national government has given some recognition to parallel lines of authority within the country. Therefore, if a foreign national is interested in buying immovable property in an area that is included within an autonomous, that foreign national will need to make certain that he or she understands the particular regulations in that area that might have an impact on the purchase of real estate in that area. Because there are so many different local variants that might come into play depending on what region of the country a person is considering investing in real estate in, it is impossible to detail them all in this limited space. Therefore, a foreign national who is interested in purchasing real estate in South Africa will want to make certain that he or she has access to very capable legal representation.

The underlying real estate purchasing process in South Africa is simple when all is said and done. A tentative or preliminary contract is entered into between the buyer and seller. As in many other countries around the world, a deposit is made upon the property by the purchaser. The amount of the deposit is negotiated between the parties. Additionally, the terms of under what conditions a deposit might be returned are also negotiated between the parties to the agreement.

Following the execution of this preliminary contract, the buyer will embark on his or her efforts to find appropriate financing for the real estate. There are many different mortgage lenders within South Africa that deal regularly with a foreign clientele. With that said, it is also perfectly permissible for a foreign national to obtain mortgage financing from a firm located in that person’s country of origin. The government of South Africa is flexible as to where a person obtains his or her financing to fund a real estate or immovable property purchase in that country.

Once all of the requirements of the initial agreement have been satisfied, a final agreement of sale and transfer of immovable property is executed between the parties. It is at this juncture, when this agreement is duly executed, that ownership of the immovable property is transferred from the seller to the buyer. With this conveyance, a new title to the real estate is registered immediately with governmental authorities.

Again, it is important to keep in mind that there might be some slight variances in this procedure in some of the more autonomous regions of the country. However, with the assistance of capable legal counsel, a foreign purchaser of immovable property or real estate in South Africa will be able to maneuver through the legal requirements.

Property Abroad always recommends using a Solicitor or Lawyer.

Les Calvert – the Director of http://www.property-abroad.com often writes articles and information on the overseas property market. Visit their site with useful information and properties for sale in South Africa http://www.property-abroad.com/south-africa.

Author: Les Calvert
Article Source: EzineArticles.com
Canadian crossborder shopping