Posts Tagged ‘real estate investment property’

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Most real estate investors are aware of the terrific positive cash flow opportunities with cash-on-cash returns in double digits on single family homes. Yet many have chosen not to invest out of fear that the value of their investment property will fall. How founded is that fear? Consider what the numbers tell us.

Take the example a $60,000 1100 square foot, 3 bedroom 1 bath house in Jackson, Mississippi, already renovated with a tenant paying $700 per month. With a 20% down payment, and allowing for mortgage payments (PITI), property management, maintenance and vacancy, the property will still return well over 10% per year (over 15% if the tenant stays in place and takes good care of the property.) That is clearly a great return on investment. But how much downside is there? Will the $60,000 house materially drop in value?

Prices will not fall if there is adequate demand for housing. Consider that if the foregoing tenant were to purchase that same house with 5% down with an FHA loan at a 5.5% interest rate, his total monthly payment (PITI) would be about $436, about 38% less than the $700 he pays in rent. Plus, his savings would be even greater because his interest payments and property taxes are tax-deductible. So it is compelling for the tenant to buy instead of rent. When we hear of “pent-up demand” for purchasing homes, this is one of the main reasons why.

So why doesn’t he buy? He sure wants to. It boils down to making the down payment and qualifying for the loan. Generally, the greater challenge is the latter. With the mortgage default rate so high, lenders have greatly tightened their standards, so it is harder for prospective homeowners to qualify for loans. However, the Obama administration has unveiled a number of initiatives to address this problem and enable people to once again purchase homes, such as a 10% tax credit (up to $8,000) for first-time home buyers in 2009. As these initiatives take root and more people can qualify for loans, housing sales will increase significantly, as there is huge pent-up demand. This, in turn, will stabilize prices, and will likely cause prices to begin rising.

Properties today have such strong positive cash flow that they effectively mitigate the downside risk in further slippage in home price. Also, while prices have fallen throughout the United States, in some areas of the country prices have fallen only slightly, such as in Mississippi, as these areas never had a speculative housing bubble like the East and West coasts did. So there is less downside risk in these markets, generally in the center part of the nation. With the pent-up demand for housing soon to be unleashed and compelling cash flow returns, there has never been a better time to invest in real estate.

Are you considering buying an investment property in the UK? it can be confusing. A first investment purchase can be scary.  But don’t let the confusion dissuade you. If done right, your investment property purchase can be lucrative. Some of the richest people earned their wealth through real estate. Keep a few things in mind.

Buying an Investment Property in UK : House Flipping as a Great Option

Real estate investment property can be perfect for flipping. Purchasing for a low price then selling at a profit is flipping houses. House flipping can be accomplished by a few methods. First is buying for a low price then waiting for the price to rise before selling. Or you can purchase an ugly house. Make the necessary repairs and do work that will add additional value to the property and sell it back . Both methods for flipping properties can be very lucrative.

Buying an Investment Property : Be a Landlord

Some people get into real estate by owning rental property. This is a property where you purchase in order to rent it out. People rent a place to live, and they rent vacation homes. You can also get into commercial real estate investing in this way. If you purchase a larger office complex as a commercial investment property, you can rent out space to smaller companies for a profit.

UK Investment Property : Land as an Investment

When thinking land investment, UK is as good a place as any for a start . Think about it this way. There are some large properties that sell for much less than the total value of individual parcels that they contain. The rewards in this case can be numerous. Some people build hotels and shops on their land.  That can lead to even bigger profits.

The Purchase

It’s not difficult to begin on a path to buying investment property in the UK – there are a few things to do. Know the property type and the location. Once you do that, you can begin to look at the various properties that are up for sale. You will probably want to hire an agent, as well. An agent is very important. Many people make money from investment real estate – you can do it too.

Are you considering buying an investment property in the UK? For the first timer, it can be a daunting task. A first investment purchase can be scary. Don’t let that stop you. The right investment property purchase can pay huge dividends. In fact, purchasing real estate as an investment is something that can ultimately make you a lot of money. Here are some tips that can put you on the road to wealth.

Buying An Investment Property UK : Flip the House, Count the Cash

Sometimes a real estate investment property is acquired specifically for flipping. Purchasing for a low price then selling at a profit is flipping houses. House flipping is done it a number of ways. The first is to buy when the real estate market is down, rent the home to cover the costs, then sell when the markets go back up. Second is buying a distressed house. Smart flippers then make the important repairs before selling at a profit . Flipping properties is a good way to profit.

Investment Property UK : Buying to Rent

Owning rental property can also be lucrative. But it, find tenants, rent it. This can be residential and vacation homes. This can be a gateway to commercial real estate investing. Buy a commercial investment property then parcel it out as smaller rental units.

Buying An Investment Property : Land as an Investment

When it comes to land investment, UK is a good place for it and is another option for real estate investing . Consider this. There are some large properties that sell for much less than the total value of individual parcels that they contain. There is a huge up side. Also you can build on the land then sell or rent the buildings.

Buying the Property – How to Start

If you want to go about buying investment property in the UK there are a few places to start. The first is that you should have a clear understanding of what kind of property you want and where you want it. Once that’s handled, you can begin browsing properties. You will probably want to hire an agent, as well. An agent is very important. Yes, you can handle investment real estate.

How to make the purchase?

Some people like to do things the common way. However, a wise investor can find cheap investment property. Many people visit a real estate auction to find the best prices. When it comes to buying real estate it is also a good idea to find the best deals.

A decision to buy investment property in the UK cannot be made lightly. Buying the first thing you see can lead to financial disaster. You have to manoeuvre through many potholes to have success when buying real estate. A little research can greatly reduce the risk. Or else, you could end up with an investment property that will actually not bring in any cash. These steps can help make the process of purchasing a real estate investment property go a lot smoother.

What do you want?

The amount of choices when it comes to real estate investment properties is staggering and your purchase will depend on what you want. Choices incorporate purchasing a new rental property, a residential rental property, a commercial investment property uk, and other things such as warehouses, mobile homes, vacation properties, etc. Each one has it’s own pluses and minuses which can compliment your needs.

Do you want property here or there or anywhere?

Many investors consider what type of property to purchase or lease before they consider location. Sometimes investors go about it in the opposite direction. No matter the plan of attack, area is a prime element when buying investment properties. And with some types of properties, the location will certainly make or break your success.

For instance if you purchase commercial land where nobody wants it, you’ll never see a return on the investment. On the flip side the ideal location for an investment property may be the middle of London.

Should an agent be involved – do you do better with one than without?

Yes, you do. While it is possible to take care of all the necessary arrangements yourself, it is not advised. Finding the best investment property can be a daunting task . A quality agent has done this before, so can tell you what to do and what to avoid. Engage a qualified agent to maximize your chances of success.

Can you spare a pound?

Of course, there is the standard way of purchasing an investment property. However, a wise investor can find cheap investment property. There are often steals found at a real estate auction. Buying real estate is all about finding the best deals to fit your budget.

In order to buy investment property in the UK and make it {profitable|cashy}, you need to be smart about it. Think before you act, then count your earnings.

If you want to buy investment property in the UK, it can’t be arbitrary. Buying the first thing you see can lead to financial disaster. You have to manoeuvre through many potholes to have success when buying real estate. A little research can greatly reduce the risk. Or else, you could end up with an Investment Property UK that will actually not bring in any money. These steps can help make the process of purchasing a real estate investment property go a lot smoother.

The two kinds of property that exist are commercial and residential. The broad definition is any property that people live in. This includes homes, apartments, mobile homes, etc. Commercial properties are anything that is used for businesses of any kind such as office buildings and shopping centres. If the lower level of your abode contains a store, with apartments or such upstairs, it can still be considered a commercial property.

What do you want?

Real estate investment properties come in all shapes and sizes, choosing the right one is a matter of your needs. Choices incorporate buying a new rental property, a residential rental property, a commercial Investment Property, and other things such as warehouses, mobile homes, vacation properties, etc. Each one has it’s own pluses and minuses which can compliment your needs.

Do you want property here or there or anywhere?

A lot of people think about property type before they look at a specific area. Others do it the other way around. No matter the plan of attack, area is a prime element when buying investment properties. And with some types of properties, the location will certainly make or break your success.

For example, if you buy a commercial property in an area that doesn’t have a demand for it, your investment will be a bust. On the other hand, if you know you want to purchase a vacation investment property, London may be a location worth considering.

How about an agent – do you need one?

Yes, you do. People have been known to do it all themselves, but that’s not ideal. Finding the best investment property can be a daunting task . An agent has the needed experience. Ask around so you can find a competent and qualified agent who will best represent you.

How will you buy property?

Some people like to do things the common way. But there are deals out there on cheap investment property. A real estate auction might have some amazing deals. Buying real estate is all about finding the best deals to fit your budget.

In order to Buy Investment Property in the UK and make it profitable, you need to be wise about it. As with anything, prior preparation prevents problems.