8 Things To Consider Before Buying An Investment Property

While buying a rental investment property may seem like an exciting undertaking you want to be sure it is the right step for you and your finances. Buying real estate can be a good way to build a financial portfolio but do some serious research first. Be educated on what owning a rental property is actually like. Do not assume it means making money with very little effort as maintaining a second or third property can be very time consuming.

Once you have done your homework and decided to go ahead and buy another home, I suggest jumping in with both feet. If managed properly it can be a great place to invest your savings. If you like the sunny Okanagan, find a Penticton realtor to guide you in the right direction as there are many rental home opportunities there. Here are a few things you will want to take into account when contemplating buying an investment property.

  1. Set Your Budget

As with any big purchase your first step should be to create a budget to follow. This type of property is a medium to long-term investment so ensure you can maintain your payments over a number of years. When buying a home there are always costs above the mortgage so you need to be able to cover them all comfortably. You do not want a situation where fund shortages force you to sell early.

  1. Insurance and Tax Rules

As an investment house is not your primary residence you need to familiarize yourself with insurance conditions for rental property as well as how it affects your taxes. Most insurance companies charge a higher fee so factor this into your expenses. Also be aware rental payments are considered income so treat this accordingly and prepare for tax season by putting money aside.

  1. Rights of Tenants and Landlords

Tenant and landlord rights vary depending on where you live. You want to educate yourself on where you stand before putting in a potential tenant. Even before you buy I suggest taking the time to learn what is expected of you as a landlord. This will lower the likelihood of misunderstandings or surprises down the road when it comes to dealing with your tenants.

  1. Rental Location

The area you buy in is important when purchasing any home but with a rental property this is even more so. A home in the suburbs may be less attractive to renters than one near a university or college. I suggest buying a place that has good walkability and an active rental market. Having a rental house that is difficult to rent out is not ideal. It will add more stress and increase the time you spend finding and retaining renters.

  1. Quality of House

Do not buy a fixer-upper house due to the fact you want to start making a return on your investment as soon as possible. If you purchase a property which is move-in ready for renters your first mortgage payment is covered without having to dig into your savings. Renovating or remodeling can cost more than you think so opting for a new home may mean a better return in the long run.

  1. Property Managers

While many of those new to the investment property community chose to take a more hands on approach there are many benefits to hiring a professional property manager to deal with your rental home. It is their job to handle renters so they know all the ins and outs and they are used to dealing with any problems that may arise. They also do background checks, organize new renters and follow up on late rent.

  1. Saving for Emergencies

Ideally you will not be in a breakeven or deficit situation after the rent has been paid. As a landlord you should save up to 30 percent of your rental income for maintenance, repairs and emergencies. You never know when the fridge may quit working or the water heater will malfunction. Having funds to cover these costs is critical to owning an investment property.

  1. Hire a Handy Man

Unless you are lucky enough to be able to do repairs and maintenance on your own I suggest having a handy man in your contact list as being a landlord means you have to fix any issues your tenant have. Tenants often let things slide and your property may become rundown if you are not keeping up on things. Having a person who deals with emergencies and upkeep ensures a smoothly running rental house.

How You Can Make Your Home Appealing to Buyers

Selling your home is both exciting and stressful, and if you are not prepared, it can also be very frustrating. It’s important before you list your home for sale that you have done everything possible to make it as appealing as possible to potential buyers. While most people know they need to keep the floor clean, make sure the home is dusted, and keep fresh flowers throughout the home to make it smell and look great, there are a few other things to be done as well.

Consider Your Furniture

You have to make sure your furniture looks great when you list your home, because although the new buyers will be bringing their own furniture with them, they will be judging your space. There are a few benefits of hiring professional upholstery cleaning services in Halifax, including the following:

  • Removal of unsightly stains
  • Refresh the smell
  • Reduce allergens and bacteria in your home
  • Improve overall appearance

Think About the Outside

In addition to making sure your furniture is as clean as possible, you will want to pay attention to the exterior of your home. It’s important that your front door is clean and has a fresh coat of paint, and that your front porch or stoop is always swept off and free of clutter. This will also keep potential buyers and their agents from tracking dirt into your home. You will also want to consider having your home pressure washed if it is particularly dirty or has mildew on any exterior walls.

With a little DIY work and the help of professional upholstery cleaners, you can ensure your home looks its best and is ready to be sold.


 

Making Money in Real Estate – 6 Tips to Succeed in Buying and Selling Properties

Real estate business is one of the many lucrative businesses that you can engage in. Of course, a lot of people are looking for homes and other real properties, thus if you have what it takes to be a good property seller, making money in real estate can be a little easier.

However, it is important to keep in mind some important tips that you can do to help yourself in making more profits in buying and selling properties, or else, you will be outsmarted by others.

If you are interested in the business on buying and selling properties and make profit from it, here are a few things that may help you in your quest to profitable businesses.

1. Get advice from an expert. Although lucrative, this business is risky too, so make sure that you have enough knowledge about the venture even before trying to put your money at risk. Find someone who has been successful in the field and you will definitely save money and avoid mistakes in the business, helping you in making money in real estate.

2. Keep in mind that there are other details in the business of buying and selling properties that may cost you. Look beyond the buying price and how much you get for selling the property. If you want to make profits, take into consideration some other costs involved in your business. Taxes, attorney’s fees, commission for the agent – you may forget to include them in your costs and think you make such profits when in reality, you have costs that have incurred in dealing the property.

3. Make your business well-managed and organized by starting up with a good business plan. In any kind of business, it is indeed important that you have a good business plan as this is one of the keys to your business’ success.

4. Get a certification as well as your licenses. This will help you make a name easier in the industry, and of course, this will help you a lot in moving on the ladder of high paying levels in the industry.

5. Explore a lot of ways to find buyers and sellers. Of course, in the real estate world, you have to have lots of buyers and lots of sellers to be able to find the best deals. You can use the internet to help you find leads and of course, there are a lot of marketing techniques that you can find online which are also fast and easy ways to reach out to your target market. The internet also is a good avenue to find investment opportunities as well.

6. Be aware of the market trends. Of course, aside from knowing and exploring what is the business all about, it is also important that you learn about the price trends in the market. You can actually learn about this on newspapers and online as well. Of course, find out details on the pricing of homes similar to those you want to sell.

Having a good guide with your real estate business can truly help you in making it successful, so make sure you have your business plan, you have your investment tools, as well as your marketing strategy and you can go ahead in making money in real estate

More Tips on Buying and Selling Property

Here some great tips for buying and selling property.

There are certain rules and regulations you need to follow when buying a home.

These vary depending on the real estate laws and customs of the area you currently live in. Don’t get frustrated by these but simply approach them in a logical and organised manner.

You will be much more confident in buying a home if you understand the things required for you to do and the people with whom you must interact to fulfil the transaction.

There are five helpful steps you need to follow:

Step 1. Organise your finances

Your credit rating is an ongoing look at how you manage your finances. You must know exactly what your credit rating say about your financial history before you apply for a mortgage because the this plays an important role in the mortgage approval process and in determining the interest rate and other loan terms a lender will offer you.

Step 2. Become familiar with the mortgage industry

Finding the correct loan and the Institute from which to borrow is crucial to your property buying success. It’s up to you to determine which institute is best for your needs, and it’s always a good idea to have at least somewhat of a background about the mortgage industry before you talk to any particular institute.

Step 3. Get yourself a pre-approved for a mortgage

You know exactly what value of property you can afford? Most likely not unless you’ve already talk to a mortgage institute

Pre-approval helps you in other ways. Consider this: a property vendor gets two similar offers. One is accompanied by an official letter from the purchasers bank that states she or he is pre-approved for a mortgage in the full amount of the offer. The second meanwhile, has no documentation whatsoever to support his
offer. If you are the purchaser which offer would you consider most.

Step 4. Define your exact wants and needs

Buying a property isn’t as difficult as you might think, even if you’re not exactly overflowing in money, but everything will go much smoother if you familiarise yourself with the market and the narrow down your choice dependent on your wants and needs before you even start searching for a new property.

Now for some tips on selling your property. Probably the most important decision you will make it when selling your property is your choice of estate agent. Here are some points to consider:

1. Choose someone you feel happy to be with and with whom you can communicate well. If you can’t communicate with him or her, they are the wrong person to you.

2. Your estate agent should be in the position to show you documentation to support any recommendations. This includes information about recent sales, property currently listed for sale and recently expired listings in the local area.

3. Choose a local estate agent.

The local estate agent is advantageous for more than one reason. Firstly he or she will have a much better knowledge of your area than would estate agent from outside. They will also be seen as a source for people looking to relocate to your area, will therefore get better co-operation from other non-local agents.

Resisted the temptation to have a friend or relative serve as your estate agent if they are not knowledge move able about the area in which you currently live.

4. Ask for references from the estate agent.

Any estate agent worthy of employment should be willing to give you names of previous clients to act as references.

5. Ask friends and acquaintances who have recently sold a property for their experiences and recommendations.

6. Have the estate agent present what will be done to market your home. Consider the amount of company support available to him or her and also the initiative and the capability of the individual him or herself.

7. Choose an estate agent who tells you the truth gained from his or her experience and not one who just tends to tell you what he or she thinks you wish to hear.

If you follow these relatively simple pointers you will be much better placed to successfully buy or sell a new property.

Property Buying and Selling Laws in Singapore

Laws regarding real-estate ownership and sales are transparent and fairly standard. Due to escalating prices, however, and a favoring of its own citizens, foreign investment is tightly regulated.

General buying and selling laws

The principal legal instrument governing the purchase of real estate is the Residential Property Act (RPA). For selling property, the overriding laws are governed by the Housing Developers (Control and Licensing) Act (HDCLA) and Sale of Commercial Properties Act.

Buying and selling laws for foreign ownership and investment

Applicable legal provisions

Foreign persons are not permitted to purchase all residential titles in a building or in an approved condominium building without the approval of the Minister for Law. An application may be favored if the foreign buyer is a permanent resident or a qualified professional who can contribute to the welfare of the economy.

  • They are not permitted to buy or own restricted residential except only by mortgage, charge or re-conveyance.
  • They cannot offer property as to a gift to a fellow foreigner.
  • Any transactions entered into by foreigners which contravene the Residential Property Act are deemed null and void and of no effect.
  • Foreigners may not buy land in Singapore except on Sentosa Island.
  • Legal restrictions on buying and ownership of real estate

Predictably, in terms of property, the laws of Singapore lean towards its citizens who are empowered to freely acquire and ownlands and residential property. Organisations and foreigners on the other hand have very limited ability in buying and owning real estate.

Buying and owning restrictions

Singapore companies, partnerships and societies must seek the permission of the Controller of Residential Property.

Foreigners with permanent resident status, foreign companies, limited partnerships and societies can freely buy non-restricted residential property such as:

  • Any flat for residential purposes but not a dwelling house upon any land
  • Any unit in an approved condo building
  • Any executive unit in a project sold under an executive scheme.

Legal restrictions on developing and selling

The relevant provisions of the HDCLA, is the overriding control on how land is developed and sold for accommodation purposes.

Developing and selling restrictions

A licensed housing developer is the only person authorized to develop and sell more than 4 units of housing accommodation.

The Controller of Housing is empowered to formulate the type of contract to be used with further powers to approve any amendments made to the contract. Any contravention by the developer will be deemed to be an offence.

The sale of commercial buildings, are under the control of the Sale of Commercial Properties Act (SCPA) and contracts for these sales are also approved by the Controller of Housing.

4-unit buildings do not come under the scope of the SCPA but it does thwart the ability of a foreign developer to extend development activities.

Tips to Buy and Sell Real Estate Property in India

Real estate business is a highly unpredictable business venture in India. Buying and selling of real estate property has equal probability of both profit and loss. Timing is the keyword in any real estate property dealings. Selling at the right time can result in huge profits.

The basic idea to make profit in real estate business would be to buy when the prices are low, hold the property till you feel the value has reached its peak and has saturated, and sell it out keeping a huge profit margin. But the problem which usually arises following this rule is the huge maintenance costs involved during the holding period which increase manifold in the metropolitan cities such as Delhi and Mumbai. This waiting period is very frustrating as you only have to incur expenses, which might reduce your profit.

Here are certain tips for a committed and serious real estate investor-

1. Decide what to sell?

Choosing the right kind of property and the proper investment method is highly important. Different kinds of property should have different ways of investment.

The most reliable property in which one can invest in to get an assured return on investment (ROI) is rental property. Rental property comes for as low as Rs. 5-6 lakhs in small towns. I am from a small town called Durgapur in West Bengal and I know how these properties are selling like hot cakes here. What one has to do is to simply stay in the house for a period of time; repair it occasionally for which you can also get tax exemptions and finally sell it. Although returns are guaranteed in investments of this nature, they usually trickle down slowly.

Owning commercial property is a better proposition compared to business property as the hassles of repairing the property as in a residential property is greatly reduced. Investing in such property usually bears good fruit. Location and infrastructural facilities should be taken into consideration while investing in commercial property. You get a better price for a location where you get the Metro, Railway stations, Bus Stands and local bazaars easily.

Owning a plot of land and selling it at the right time is one of the easiest and most profitable kinds of investment. This kind of investment doesn’t have any recurring costs associated with it and is thus a pretty safe investment. The waiting time can be particularly long in investments of this sort.

2. Gauging the market

In real estate business you have to be always very aware of the existing market conditions. India is a very fluctuating market, so keep an eye on it. Buy when few are actually buying else you may have to buy in the listed price. Sell at a time when you are in a position to make a good offer. Calculate the time value of money before declaring the price. Keep note of the expenses incurred during the holding time.

3. Pricing

This is the most important part of a real estate business. You have to be smart enough while pricing keeping in mind the competitive environment, the future utility of the property and other important issues like location of the property in the cities of India and the demand of the particular property. Thus, you can easily expect Rs 8-10 lakhs for a 3 bedroom flat in the Gurgaon region, which is the upcoming technical hub of Western India.

These are the few tips which can help in your decisions of selling and buying real estate property, but ultimately it is your will to take a risk and your vision which will make you reap good benefits from buying and selling of real estate property in India.

Buy and Sell Homes Online

In today’s society, our lives revolve greatly around the internet, so any business that wants to survive, functions online as well. Many people are turning to the internet to buy and sell homes. The reasons for this vary, but often include avoiding agent commissions, increase options, and convenience.

One common way buyer and sellers meet online is through online classified ads. There is an endless amount of websites where people can search for homes.

Another option to buy and sell homes would be through an online auction. If you decide you need professional assistance, there is a real estate directory online where you could search for agents.

The property website service offers better exposure to your property that you want to sell, but for a fee. They guarantee search engine optimization of all property in their system.

A popular trend used to buy and sell real estate is social media sites. Social media sites and blogs create faster interactions between both the seller and buyer to facilitate the transaction.

Social media sites are more personal. People often feel safer and more secure when dealing with transactions through these sites.

Now a days, people who use real estate services to sell their home, will link the listing to social media sites in order to make it available to a broader range of potential buyers. Beware, though, some people might see this as spam and may stop following your blog or other sites as result.

The ways in which people buy and sell homes are increasing. The online option is becoming very popular now days. The internet makes the real estate market even easier to find what you are looking for as you can do it on your own, in your spare time and the area’s you can search are even greater.

Beth Dedrick has been writing articles about the Web for the past two years.