5 Reasons To Buy Residential Rental Properties

Everyone has at some stage of their lives heard the saying “You can’t go wrong with property”. Some would have taken property investment tips like this and invested everything they had the very next day. Most of us probably smiled and thought nothing more of it. Here is a list of some property investment tips as to why property investment is the way to go.

To Build Wealth:

Property is seen as a proven way to build wealth. Millionaires have been made exclusively through the property, and most successful investors will have a significant chunk of their portfolio in the property. As long as a long-term view is used, even the most conservative investor can reap the rewards. There is a common saying out there that house prices double every 7/9/10 years (depending on what publication you read). Whilst this has been proven over certain time frames, it is important to remember that there have also been periods of time where prices have stagnated or even reduced. Over a long, enough period of time prices will generally increase, hence the need for a long-term view when investing in the property.

It’s Easy To Manage Yourself:

Whether it’s a Residential Investment Property, a Commercial Property or even a Shareholding in a large Syndicated Investment, it is something that everyone can get to grips with. Sure you will more than likely need an accountant to sort out your tax obligations and a solicitor to set your investment up in the best way possible, but that goes without saying. Once you get your head around the terms associated with your investment you won’t look back. There are a number of clubs, associations and forums for people in exactly the same boat as you where you can get property investment tips, and where information can be exchanged freely.

There’s Something For Everyone:

Whether you’re someone that likes to see exactly what you own and have total control or someone who likes the idea but can’t really be bothered with all the details, there is something for you in the property. You can purchase a small rental and manage it in your spare time; you can purchase several properties and manage them as a full-time occupation. You can even just hand the control over to a third party, let them take care of all the day-to-day requirements and you can watch your investment appreciate over the years. There is something to suit all personality types.

Tax Benefits:

Depending on what type of investment property you purchase and the structure in how you set it up, you may be eligible for a number of benefits. For example in New Zealand by holding your property in a special company you can negatively gear an investment property and then claim a tax rebate from the losses achieved in your company through your personal tax. You are able to claim back the costs that you have incurred in the process of managing your rentals such as accountants fees, travel costs, phone and office expenses. Whilst the benefits are an added bonus, I don’t know of any investors that got into property purely for the tax benefits that may be achieved. For a comprehensive summary of what you may be entitled to, a chat with your accountant and solicitor is recommended.

Retire Early And Enjoy Life:

By investing in property and building a successful portfolio the possibility of retiring early and enjoying your twilight years could become a reality. A smart and prudent investor could build a sizable portfolio from a minimal investment.

Having someone else paying off your mortgage or loan lets you:

a) Build wealth faster than you would have originally thought

b) Achieve financial goals and milestones a lot sooner

Once you have achieved your goals, you then have the option to reassess those goals and maybe continue to let it grow or else sell up and live out your days in comfort. You may be in a position to give your children a “kick start” on the property ladder and allow them to build a portfolio of their own.

There are many reasons to get yourself on the property ladder, be it for financial reasons or for the challenge of doing something you haven’t done before. There is a range of different property options with enough variety to suit most people.

Tips on What Sells Real Estate Properties

Giving an adequate price to your property when selling it can have a major impact on it’s selling. It will be more likely viewed by potential buyers if the price you listed sounds reasonable and fair.

A too low price could be suspicious to some people, and an overvalued property is something that a common buyer will avoid when making decisions on which real estate property they will take a look at. A price that is over the top will scare a potential buyer right at the start since they already might be familiar with the properties with similar characteristics that are listed for a lower price. Putting a price that is too low, on the other hand, might make people think that you are hiding something about your home, and the might just move on to the next real estate property listed. A savvy real estate agent will let you know of the best price to put for your home when selling it. What will help a seller to come up with the right number is when they study comps and when they survey other properties.

Overall Appeal to The Eye

What makes the home sell most quickly is dressing it at it’s “Sunday Finest”. Manicure your yard and sweep the sidewalks. Put fresh fruit baskets, seasonal flowers and lit a candle or two inside the house. Ladies prefer the scented candles, but a regular one during the visit of a potential buyer will be a good choice too. One thing that will really give a welcoming idea to the real estate buyer is the smell of baked bread or anything of a good cooking. Paint the walls freshly and do the housecleaning as often as necessary. Removing some of the furniture will make the rooms look bigger, as well as the white or light coloring of the interior.

Professional Photographs

Today a great photograph is a must, actually! A professional will know how to capture the pros of your whole property and how to depicture all of the rooms and the interior in a best suitable way. If you can afford yourself a professional real estate photographer, you should definitely go for it when taking photos for your property listing. The photos should then be applied to websites, flyers and virtual tours as well. Since almost every individual is mainly a visual type of a person a real estate buyer is no exception, and more pictures you have and the better their quality is, the more potential home buyers you will get and the quicker the house will be sold.

Staging Is As Important As Anything Else

This goes along with the real estate tips from number two, and what staging a real estate properties means is making the house as much appealing and attainable to the average person that comes to take a look at it. Your collection of guns or your collection of stuffed animals might be a great site for you, but the average person might not get the best first impression looking at it when they walk in the room. The overall impression they might get from is “cluttered” no matter of the rest of the home. It’s a buyers psychology, and you must make take care of it when staging your real estate property for sale. Piling up your files and mail on your workspace in the kitchen might have become your everyday reality, but a person that comes in for the first time most likely will give it a little minus mark in their head since they expect a kitchen that “smells as home.”

An average buyer of a real estate will be striving towards a place they will be able to call their home, so you might need to be a little intuitive as well as be able to predict or read the common psychology of a homeowner. Especially of a family type ones, and especially if you are not of that type of people yourself. But some basic rules always apply; make each and every room appealing to the observer as much as possible, remove everything that is worn or represents and excess and make the interiors light, spacious and clean. Make minor repairs on the house’s outside front, clean up the yard and the garden and trim up the house. Additional decorations and flowers outside can only be a plus. It also all depends on how much time you have and how much effort you will be willing to put in real estate staging. Inside, even the elements such as cupboards and closets should be straightened up and pared. Potential buyers might want to take a look inside if you will include the furniture in the price.

So to summarize it all and wrap these real estate tips here are the common most important things you need to take care of: The starting price should be down to earth and realistic because it will be something that will draw most potential buyers and their attention. Best curb appeal sells fastest (combined with other real estate tips in this article, of course).

Professional looking photos and professional photos on flyers themselves are a must on today’s real estate market, and a house that is stage will scream for buyers attention and will play on a card of his desire for a place called
home.

What Tips You Should Remember When Buying an Apartment

Second best, when buying a home would be buying an apartment. That would be a second best, right after buying your own home. Owning an apartment might not have all the benefits of a house, as in a real home that you own, but it can be a delightful place to call your own.

When it comes to first preparations, there are certain golden tips you need to do before you call your real estate agent. Don’t go head “in front mind “as I often like to say, before you consider this easy tips for your little real estate adventure.

You should first ask yourself; why is it that you decided to move in the first place. Determine what thing about your current home make you unsatisfied and be real to yourself. You must know this in order to avoid making the same mistake again in your new house. Do your common homework: research! Find out all about apartment buildings in the area you might be interested in. Make a list of all the things that you are looking for. Write down also what is it that you’re trying to avoid this time. This will keep you from trouble. It will also help you find the best apartment. The one that will benefit you the most.

Find out whether the apartment has shops, restaurants, grocery shops etc. in near area. You might feel that having no convenience store in the nearby area is a small compromise, but before you make a decision like that think about your grocery shopping habits first. You might, or might not change your mind after you do a thorough inspection of your actual habits at the current real estate.

Do a visual inspection of the building. This goes especially for newly built apartment blocks. Don’t take the investor and or developer’s words for exact facts, best is to trust yourself and your own judgment also. Sometimes the developer will tell you whatever he thinks is best or at least exaggerate in a bit. If you have enough time and energy at your disposal go and visit each as many apartments as possible and compare them on your own or with a real estate agent. Also, take note of your price range and whether the ones you visit fall within it.

This is to ensure you that you are not just browsing without a cause and wasting your time on apartments that you won’t be able to afford anyway. Ask about the age of the buildings. Older ones will need more investment on a long run, and especially if something needs to be fixed right away. It is actually a good investment to buy an apartment as a home, that only needs cheap fixes, but its price is not as high as the prices of a completely new apartment.

And the last but not the least would be to consider amenities of an apartment. Consider things like the reception area, round-the-clock security and whether the apartment has it’s designated parking space. Ask for the rate of the apartment parking space. Consider that you need a price of maintenance that is fair and maintainable for you. Happy
house hunting!

Buying a Fixer Upper and Real Estate Tips on Doing So

Having enough time and will is one of the great real estate tips to get the benefits of fixing your house after buying it. In other words, and to make a briefing of following real estate tips in this article: when you’re buying a home that has some flaws but is fixable, you can save much money right at the start. You are not only fixing the problems and flaws on the house, but you are also entitling yourself to equity of the home should you decide to sell it and buy a larger or a more luxurious one. You will also raise the value of the other homes in the area if you look at it that way. since you will bring one of them up to the standards. Here are the top real estate tips on buying a fixer-upper real estate property and accompanying advantages of doing it:

Price will be reduced. When the seller doesn’t want to do the extra work, he will put a perfectly good house on the market, for sale for a notably lower price. Instead of taking time and effort into fixing it they just list it for less. And since the property is in bad condition one of the real estate tips is to offer a price that is well below the current market value. A special bargain would be buying a home in a beat-up state but within a good neighborhood. You might be able to earn a good equity. You can choose your own look. When you’re buying a home that is already fixed you exactly make it fit your taste. With a fixer-upper, you can design it to accommodate your own needs and taste.

You are able to install the cabinets you want, put in your own type of bathtubs, sinks, flooring, and so on. The non-bearing walls can be taken out, for instance without worrying about destroying the paint job since you’re the one that will paint the walls in your own desired colors. Sounds pretty cool, doesn’t it?

You’ll be able to collect the money from the equity. You can buy the house for less than it holds it’s value on the market, but for its real price since it needs that much of your work. Every fixing you make, and every improvement is a plus and an advantage for you when living in the house, and when you decide to sell it. Real estate tips advise you to make the house look and feel as better as you can sense as you are making it better it’s value is rising, and your equity is rising along with it. One of the best real estate tips when buying a home that is a fixer-upper is to try to raise the value of the real estate property above the value of the market. Now that is what you can call a smart move, and a good opportunity hands up!

Why not try to qualify for a renovation loan if you need it? Some types of home financing are ideal for this, and an FHA 230K loan is one of them. When funds will be available from the government or other programs, there will also be other ways to finance your fixer-upper. These usually get offered to the people with the intent to improve the neighborhood and increase the value of the property. Many of these loans will require you to reside in the property in order to qualify for it, so you should talk with experienced lenders if you want to find out the details.

The satisfaction of being the one who did it all by themselves.When you live in a house that used to be in a poor condition, and you’re the one that put a new shine to it, well real estate tips bets that will be something you’ll be able to talk about to everyone and something that will fill you with a sense of pride for a long time.

Buy To Let Mortgages

As there has been a global recession in recent years, not many landlords are actually making very much money and at this moment in time the best kind of property to buy is run down terraced houses, these are the kind of houses students live in and the price you pay against the rent the tenants pay can be quite a decent difference. You have to remember though that old run down houses can come with a lot of problems so the amount you pay for repairs could mean you end up losing money.

There are many online companies and specialist mortgage companies who will give you a buy to let quote easily, do your research though and do not settle for anything less than you need, some companies have a habit of hiding big details such as long tie-ins and so on. Most new builds have a rental rate which just covers maybe the interest on your mortgage and a few other costs, there isn’t really much there to make a profit so that is why a lot of people would find mortgage lenders who offer very low interest to get the ball rolling.

Usually when a landlord is buying to let mortgage companies and banks require a 15% deposit and if the interest cover requirements are not met you will have to pay an even higher deposit. This does, however, mean that your mortgage monthly payments can be reduced and this will fit the interest cover.

When finding a property which you want to buy to let you have to think about the level of rental income you expect to get in comparison to the mortgage cost on the building. Lenders usually expect 130% more than the mortgage cost or even more. This is to cover any extra costs after the mortgage has been paid and to maybe make a profit. So just say you had a rental price of £800 then your mortgage cost should be no greater than £615, this means there is enough money to cover costs. However if there are slow months and you cannot find a tenant, you will, in fact, be losing money so the idea is to find a property which has a high renting value and a low mortgage. It’s good to buy a property cheap, fix it up and this will make the rental price higher. This means it will be easier to cover costs on slow months as the mortgage will be fairly low. However, sometimes it can be quite costly to fix up a property, especially if it’s your first buy to let. If you cannot fix a property up because of costs then there are still hidden gems which have low mortgages and high rental value.

Buy to let is very much a preferred and chosen type of investment at the moment, especially over the last few years whilst there has been a global recession. It makes it easier than perhaps a standard mortgage as it does not regard your actual income but the general state of the property and the ability it will have to provide an income to pay the interest and repayments on the loan.