Posts Tagged ‘Sound Investment’

Living the Dream

If you are planning to buy a property in Greece or even just thinking about it you will need a guide to help you though the Greek property purchasing process. Whether you dream of a beach villa, village house or an apartment in the town, it is important to avoid the pitfalls of buying a property in Greece in order to make your dreams come true.

The Dream Verses Reality

In your favourite daydream you have decided to leave your present home behind you and settle in another country. You pack your belongings and leave your country behind. You can imagine the little table, chair and parasol on your terrace overlooking the beach. You are watching the sun set peacefully into to azure sea, while drinking a glass of local red wine and eating olives hand picked from your own trees. You are relaxing away from the stresses and strains of your current life and enjoying a life that you so rightly deserve…

Well, we all have fantasies but, this is the real world and things are simply not always that easy. Are you planning to book a cheap package holiday for a week or two, spend a couple of days looking around, and then buy the perfect little house on the spot? Or have you really thought about what’s involved in purchasing a property in Greece? Have you done your homework, research and planning? Do you know where you want to live when you reach your dream destination? A little forward planning will help you achieve your goal of living the dream. It’s much better than leaving things to chance.

What do I really want from a property in Greece?

The first question you should ask yourself is exactly why you wish to purchase property in Greece. For example, are you looking for a retirement or holiday home? Do you want a summer, winter or permanent home? Are you seeking a sound investment or do you wish to work or start a business? Probably you will find that there are a number of reasons you wish to buy a property in Greece. If this is the case there are many more factor to take into consideration then just buying a holiday home. Take some time to decide what kind of property you would like to purchase, and then discuss your ideas with your partner and family. If you are at all unsure of what or where to buy, the best decision is usually to rent for a while first.

When buying a property you need to consider where you would like to live. Resorts are lively in the summer, but may be crowded with tourists. However, in the winter they may be completely closed, with nothing in the way of facilities or shops. In the mountains or villages a few kilometres in land you will probably be a part of a friendly village community, but if the village is remote no-one may speak your language, so you will have to learn theirs quickly. Another option is to excel at mime. You can make many friends among the villagers this way and have great fun too.

Financial Considerations

One of the most important aspects of buying a property in Greece and living there is finance, which includes everything from transferring and changing money to mortgages and taxes. If you are investing in property or a business it is important to consider the exchange rate. Take a realistic look. It is easy to imagine that you have more money to spend on your dream property than you actually have. The cost of purchasing a house and costs of repairs can spiral dramatically without you being prepared for it. If you need to borrow money to fund your dream property, be careful where you borrow the money from.

Many mortgage companies will not lend money for property overseas. It may seem trivial to mention, but always remember that if you borrow money to buy property, or to rebuild it, you have to pay the money back! This statement is one that should be at the forefront of your mind when you are making your plans. It’s advisable to have your finance in place before your inspection visit. If you see your dream home you will be able to purchase it without any delays. This way you will not miss out.

Do not count on holiday lettings for your property to tourists during the months you are not there. In the last two years there has been a decline in the tourism in most parts of Greece, and income from letting property has declined with it. To let out rooms legally, you must have a license from the Greek Tourism Board. You must also fulfil fire and safety regulations, and you must pay tax on this income. Authorities are having a clamp down on illegal lets, and fines are enormous!

If you are planning to move permanently to Greece, unless you have enough private income for you to live well on, you must consider employment in the place you are going to live. You must ensure that this will be possible before you buy a house. What kind of job can you really expect to do? What are your qualifications and experience? Are they recognized? Do you speak fluent Greek? Unless your Greek is fluent you wont be completing on equal terms with the local workforce (you wont anyway, but that a different issue!). Most Greeks aren’t interested in employing people who do not have a good knowledge of the Greek language unless it deals exclusively with foreigners. Are there any jobs in your profession or trade in the area that you plan to live? Answer to these questions and others can be quite disheartening. However, it is better to ask them before moving to Greece, rather than afterwards.

The Greek equivalent of the English Job Centre is the OAED which has a special department for Europeans seeking work, although you should expect it to be easy to find a job. Unemployment rates in mainland Greece is generally high. It is higher still on the islands. Some islanders can only find work during the summer season, when tourists visit. This means they either have to save enough money when they are working to live on during the winter, or learn to survive on unemployment benefit in the winter months. Unemployment benefit is only paid if they have enough national insurance stamps credited to them over eighteen months. Working one summer season will not earn you enough to be paid benefits. If you are self employed in Greece you are not entitled to benefits at all.

Looking For Your Dream Greek Property

After you have answered all these question and more your will be ready to start looking for a property to suit you and your family. Now do your research. The internet is a helpful tool. Listed below are links to relevant articles and information about property and the prefecture of Messinia which will help with your research.

Take notes about the kind of properties that are available and their location. Also note down any that are just below your price range (just below, because you will need some money to pay for taxes, legal fees, and hidden costs of buying property). Discuss the properties that you have found with your family and friends. Find out about the area to see if it suits your requirements. Study maps and guide book descriptions of each location.

When you have established what your requirements are contact the real estate sites you have been looking at. Find out if the online property list is up to date, quite often agents only advertise a small selection of the properties that they have available. Let the agents know your full requirement (be as detailed as possible) and leave your up to date contact details with them. Ask the agents to let you know when any suitable property comes up. This will make it easier for them to narrow down the search so you do not spend months looking at unsuitable properties.

If you intend booking a holiday in order to view properties, it is important to let the real estate agent know you are going to be arriving at least a couple of weeks in advance. Tell the agent where you will be staying. Take a mobile phone with you that works overseas, so they can contact you if they need to. The agents will be able to arrange viewing of properties for you while you are in the country, and hopefully, will be able to find several properties in each area you are interested in.

Be open minded, it may be worth considering purchasing a plot of land, rather than a house that already exists. Design and build properties are easy to find and are a very popular choice. Check if the plot has planning permission. It is often automatic if the land has road frontage, with all services (water, etc) nearby. If the land is within the town planning area it should also be buildable, but always check, and get it in writing. Prefabricated buildings are available in Greece now, they can be built by the manufacturers, or by yourself. If you plan to build any property yourself you it is important to remember that you have to build to Greek and European building and safety regulations. These are very different from UK regulations. All buildings must be built to withstand earthquakes, for example!

When you have found the property you would like to buy, it is advisable to get a survey done. This is a step that is often missed out in Greece. Some areas are prone to flooding, earth tremor damage, or sink holes (A large hole that suddenly appears in the earth when the limestone beneath is eroded away by water). Save yourself a lot of trouble in the future by paying for a good survey. When you have found a good lawyer (who speaks your language, as well as Greek) and a good accountant (to sort out a tax number for you, and some financial details), you are ready to make an offer.

It is normal to pay a deposit of 10 – 20 % of the agreed purchase price. This seals the contact between the seller and buyer. If the seller pulls out (which is unlikely) he must return the money plus the same amount again. If the buyer pulls out the deposit is forfeit. However, if previously known problems are revealed the deposit will automatically be return. Property purchase is generally completed in a short period. It can take as little as 48 hour to 2 weeks. However, if the seller has not collected all the necessary documents for the transaction, it can take up to 3 months. You must not pay the full amount until all the documents are in place and your lawyer has made it all legal!

Good Luck with the purchase of your dream Greek property. Enjoy your little piece of Paradise, you’ve earned it.

Claire May is a recognized author of articles about property in Greece and Messinia. An article of her successful undertaking was published in the Escape property magazine. For more information about Messinian properties come and view our website http://www.claires-messinian-properties.com

Author: Claire May
Article Source: EzineArticles.com
Tissot virtual reality

There is no doubt that there are many opportunities and advantages that take place over the Internet. Now when one can include real estate investment over the Internet that is really a mind boggling thought. This is something that takes place on a regular basis however and is something that you could really use to your advantage if you are considering doing some investing in real assets. Here are some benefits to investing utilizing this tool.

Benefit #1

The nice part about the Internet is that you can search for a whole venue of different types of properties that you may be thinking of investing in. If you are contemplating buying a second home as a investment then you are not going to find any shortages of such on the Internet.

Benefit #2

The nice part about using the Internet to plan your investments is the time that you can take to do so. Not only can you look for your potential property investments but you can also look for a loan opportunity to help you finance your investment.

Benefit #3

You can also gain a wealth of information that is going to help you fine tune your investment and give you all the necessary research and that you need to be able to make a sound investment with knowledgeable input.

If you wanted to go one step further you can actually start your own website or investment. What you could do here would be to gather information concerning other people that were perhaps thinking of doing property investments as well.

There are many opportunities open to you on the Internet when it comes to your real estate investment and it is a great beginning tool for you to learn with. The nice part is that you can take your time while learning and not be making any snap decisions

One area that you definitely want to take advantage of when it comes to real estate investing over the Internet is watching the market trends. By learning to follow these trends it gives you that much more security when it comes time to do your real estate investment. So as you can see there is certainly nothing lacking as far as support goes for your real estate investment and if you’re not too used to the Internet yet it would be well worth your while to become so.

Even when the economy is bad there are still some great deals to be made when it comes investment. This again is another thing that you can learn to take advantage of investing over the Internet.

I invite you to learn more about Real Estate Investing and become a member of our FREE weekly tele-seminar class where we teach tips and strategy on how to grow your real estate investing business and how to raise Private Money by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html.

Mike Lautensack is a full-time real estate entrepreneur, coach and mentor in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE eBook go to Real Estate Investing Blog.

Author: Mike Lautensack
Article Source: EzineArticles.com
Canada duty rates

Investment in any business or residential property has become the crucial question nowadays. What and where to invest the hard cash sometimes takes a person into the deep abyss. As investing in property is in rage, people tend to move in the direction which is going to pay money back to them. And people, who cannot afford such ventures, save their amount in the bank at the last resort.

Residential investment- A poignant income

Investing in residential property seems to enlarge as people finds it more beneficial. It sounds a great investment and serves multiple purposes.

• Property bought can turn up to the huge capital income.
• Residential investment opens the door to a slow but steady income.
• Residential property also serves the future purpose of the residence.
• Apart from the overheads cost, the location gives a boom in its actual worth.

Maintaining the residential property can turn out to be a little difficult. Once it is bought, a person may cringe to shell out more money for its maintenance. And on the other hand, keeping the property in a good condition would remain his prior consideration.

Such steady boom can be perceived in residential investment Brisbane. People instead of locking their amounts in the deep dark corner of a bank are now forging to invest it. Investment gives your money a way to step- up. One generally invests with notion of multiplying his current amount. But a good income depends on the good and thoughtful investment.

Residential investment could be a sound investment

Before embarking on the investment, it is always recommended to go through a thorough research. Study the locations and plots with its tentative chances of progress. Investment in a good location can bring a heavy chunk of money to the investors. Moreover a proper knowledge of its related areas like roads, markets and transport access can also help in determining whether that piece of land or a house is worth investing.

Apart from that those built houses can be given out for rent. This will resolve its maintenance problem as well as also contribute in giving a steady income. Such investment has its unbeatable benefits and assurance.

But many people consider investing in fixed deposit safer. It prevents a person to take a risk. Effort to study a property or land can be evaded. Moreover it also escapes an investor to loose money in his unfortunate miss-investment. Besides a plot has to give some sort of income up to par. If returns do not match the expected income, it makes no valid reason to invest. But in any case, its advantages tend to surpass its drawback as it helps money to grow. One can ascertain his flow of steady income through investing in property.

For any help on Residential Investment, check out the info available online; these will help you learn to find the Investing In Property

Author: Michel Disusa
Article Source: EzineArticles.com
Humorous photo captions

I’m mostly opposed to get-rich-quick methods for real estate investment for a couple of reasons. They often assume that you self-manage the property while, at the same time, they ignore your cost of time. Plus, they like to bloviate about “no money down” yet fail to warn you about the high risk associated with high leverage. Besides, it’s difficult to trust someone claiming to have uncovered a goldmine yet anxious to peddle a map so it can be found. If they really discovered the road to real estate investment riches, why would they share it?

Actually, there is no secret way to attain real estate investing success. In real life, you must work hard with good research and a commitment to a sound and systematic analysis. Pathways leading from get-rich-quick seminars are littered with disappointment; the key is to take as much time as necessary for you to prepare properly. Time is in the side of the prudent real estate investor.

In this article, we want to help you better understand some of the nuances associated with real estate investing. We would like to discuss the importance of building a sound investment plan with meaningful goals and then cover the formulas of four popular financial analysis models used regularly in real estate investing.

Sound Investment Requires a Sound Plan

Having a plan with stated goals is one of the most important foundations of successful investing. However, it’s not about lofty intentions like declaring, “I want to be worth a million dollars one day.” No, there is nothing wrong with desiring better things in life, the problem is that simply declaring something doesn’t bring you any closer to achieving it. The idea is to develop a general plan with stated goals and a method on how to get there.

Goals Must be Meaningful

Goals are the shortcuts to your desired destinations. Goals are not essential to life, many people do just fine without any kind of goal at all, but goals are essential to successful real estate investing. For a goal to work for you, however, it must be attainable, measurable, tied to a timetable, and clearly defined.

Moreover, divide long-range goals (say further out than one year) into intermediate goals, and your investment plan into subsections such as “cash flow requirements,” “net worth projections,” “tax shelter benefits required,” “cash withdrawal from plan,” and so on.

Start here: How much cash do you have available to invest comfortably? What length of time do you plan to stay invested? How much of your own effort do you plan to contribute?

Define a general plan: You plan to develop or own only the highest quality properties in prestige locations. You plan to own the largest market share of duplexes or perhaps freestanding retail buildings in a local market. You plan to maximize your tax benefits on purchases and use tax-deferred exchanges and installment sales when available.

Define a detailed plan: How much cash do you want to collect each year beginning in the 10th year? What net worth do you want to attain by investing in rental properties after the 15th year? You plan to withdraw $5,000 in two years to visit Europe, or generate $30,000 by the 5th year to pay for an additional house, or withdraw $20,000 over years 7-10 for your daughters college tuition. And so on.

The idea is to create a target and then monitor your progress continually against that target to insure that you’re on the right course. A written plan with stated goals that projects where you’re headed and then reviewed regularly is critical to successful investing.

Financial Analysis Models

Okay, let’s switch gears and summarize four very popular investment value measures used regularly by investors and real estate analysts.

1) Cash on Cash Return Cash on cash measures the initial profitability of a rental property. The higher the better, and typically a first-year cash on cash return ranges from about 4% to 10%.

Formula: Cash on Cash = Before Tax Cash Flow / Cash Equity (Initial Investment)

2) Gross Rent Multiplier Gross rent multiplier measures the ratio between annual gross rental income and sale price. Think of it as an indication of the number of years it takes the annual rental income to equal the price, so the lower the better. It is good for simple comparisons to other rental property opportunities but insufficient as a stand-alone number.

Formula: Gross Rent Multiplier = Purchase Price / Gross Rent

3) Capitalization Rate “Cap Rate” is essentially a return on asset indicator of how much debt an income property can carry. The higher the return rate, the more debt a property can support, and hence the better the investment opportunity for the real estate investor. Sellers of income property, of course, prefer to sell at lower cap rates. Local markets dictate capitalization rate (there is no one-size-fits-all) but they typically run from about 5% to 12%

Formula: Capitalization Rate = Net Operating Income / Purchase Price or Value

4) Internal Rate of Return The IRR model essentially calculates the average discount rate that equates all future returns over the projected holding period back to the present value of the initial equity investment. It’s the most frequently used measurement of projected holding period overall returns because IRR delivers in one number an investment return that integrates rental growth rates and property value appreciation. IRR should be used as a comparison to the real estate investor’s required rate of return for making capital allocation and initial investment decisions. IRR can be computed for before or after tax cash flows.

Formula: Not posted. To compute use Excel or a qualified real estate investment software solution.

About the Author

James R Kobzeff is a real estate broker and developer of ProAPOD, superior real estate investment software since 2000. Want to create rental property cash flow analysis presentations with automatic computations for all crucial ratios and returns? Go to => http://www.proapod.com

Author: James Kobzeff
Article Source: EzineArticles.com
Get my ex back

At a time when everyone seems to be chasing the next hot spot for property investment, where should you invest, why, and how will you get the best returns on your money? All is revealed here…

Romania is increasingly earning the accolades as one of the best property investments in the world. PriceWaterhouseCoopers ranked Romania as the most profitable property investment in Europe in January 2006. They estimated a 414% return on investment over the next decade, which works out at approximately 17.8% annually, a considerable return. Coliers International, one of the world’s largest real estate consultants rated Romania as the second most lucrative investment in the world in July 2006. Given its rapidly expanding economy, booming tourism, impressive foreign investment, and its EU membership from 1 January 2007, Romania clearly possesses the attributes to be a thriving property investment for the astute investor.

Whilst the ingredients for a lucrative investment are there, how exactly, do you maximize your profitability from am investment in Romania? Here are 5 top tips to achieve a commanding return on your money and possibly exceed the promising forecasts from PriceWaterhouseCoopers and Channel 4:

1. Leave the capital and go for a secondary city.

Bucharest is a sound investment and the large majority of experienced foreign investors concentrate the bulk of their investments in the capital. However prices in the capital have risen exponentially over the last three years, with most property doubling in price. Prices will continue to rise, but at a slower pace than that of many secondary cities in Romania. Hence a large number of the country’s biggest developers and investors are moving gradually to other major cities in Romania, such as Cluj, Constanta, Timisoara, Iasi, and other locations. These are areas of strong growth and whilst the rental yields will generally be lower than in Bucharest, the capital growth can be substantially higher.

2. Buy off-plan very early in the development process

Most development projects take 12-18 months to complete. If you buy very early in the development process you will benefit from one or two price rises during the property’s construction. The developers usually raise their prices to align with the soaring market prices and to allow for the increasing material and labour costs. If you buy at the beginning the development you can see an official 15-25% price increase during the construction phase.

3. Leverage your money using bank’s money

Mortgages for foreigners are still difficult to come by and fairly expensive. There are 4-5 banks that offer mortgages to foreigners and the interest rates range between 6-10%. If you get a rate of 6.5%, which is comparable to the rates in the UK, there are still considerable bank arrangement fees, up to 3% of the property value. Even at these costs it is still very lucrative to leverage your investment with bank financing in Romania. However, if you can raise finance against a property in the UK or even better, in Europe where rates are lower, your investment will be even more profitable.

4. Invest in land

Land investments have consistently outperformed property investments in Romania over the last three years. Depending on your available capital and preferred investment duration, buying land at low cost in strategic locations can bring stunning returns. As more and more property is being built, less and less land is available and of course this will increase land prices faster than property prices. Beware though, this is not an investment to take lightly, you need to have a very accurate knowledge of the market, especially prices, locations, zoning plans of the local authorities, etc. Only venture in this direction with reputable and reliable real estate and legal advisers.

5. Invest in renovation projects

Renovation projects, whether in the capital, a major city, holiday resort or a historic town can be a very lucrative investment. The costs vary depending on the location, type and size of the project, but impressive returns can be achieved in a matter of weeks. Should you aim for low cost renovation projects, head for a small town or a well-known village in a popular tourist area with good access. Here you can start with the lowest possible capital, often under £10,000. Beware the weakness of such a location though: the resale market may be very slow and it could take you a considerable amount of time to sell your renovated property.

Pete Johnson is involved in european property investing – in particular the countries that have recently been admitted to the EU – Romania showing the fastest growth – http://www.anglo-romaniandevelopment.co.uk being the place to go for anyone serious about cashing in on the huge returns coming out of developing European nations.

Author: Pete Johnson
Article Source: EzineArticles.com
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