Posts Tagged ‘investors’

It is a known fact that financial markets all over the world are facing a recessionary trend. Property prices all over the world are showing negative growth because credit is hard to get. One market that has remained unaffected by this credit crunch is the Dubai property market. Development of properties is growing at an unprecedented pace, and most properties under construction will not be ready for occupation until 2010. Many large investors in the world still look at the Dubai property market as the most profitable investment. Also, no negative impact is seen in property rentals and resale of properties.

Most people felt that investment in Dubai’s property was a bubble waiting to burst. They were proved wrong, as Dubai is still considered to be the one of the most lucrative and the safest places for property investments. One of the main reasons for this is the ever growing property resale market. The property resale market is growing at a steady pace, and refuses to show any signs of negative growth. People investing in Dubai’s property market are brimming with confidence as they are confident of getting high returns on investments made on property. People estimate that prices of properties under construction will increase by at least 25 percent, and those completed will increase by at least 50 percent. All this makes Dubai property a great credit crunch investment.

Dubai no longer has larger oil recourses, but let’s not forget that it made huge money when it produced oil. The enormous amount earned by exporting oil is finding its way into the property market of Dubai. Property construction is developing so rapidly that it is hard to find a block where no construction is taking place.

One of the most talked about and happening projects is the one coming up at the Island of Ireland. If you looking to invest in penthouse suites, beach-facing homes and villas, then the Island of Ireland is the place to invest. Apart from Villas, Suites and Penthouses, you will also find restaurants, spas, cafes, boutiques and all other facilities that you can dream of. The total project area of Island of Ireland is over 225 000 square feet.

The Island of Ireland is not the only place you can invest in. Palm, which is situated at Jumeriah, is another investment hot spot. The project is in the shape of a huge date palm and is man-made. To build this giant date palm more than hundred million cubic feet of sand has been used. Palm is being constructed in the area between the gulf and the mainland. Once the project is completed it will address the problem of the shortage of beaches in Dubai. A monorail has been set up to take people to the Palm. Famous personalities like Michael Owens, Joe Cole and David Beckham have bought properties here.

Property prices in Dubai have gone up more than 10 times in last six years. There is an unprecedented rise in demand for ready-to-occupy properties, which has resulted in a shortage of these properties. This has resulted in the demands of many investors remaining unfulfilled. With people predicting that property prices will increase further, there are no signs of a slowdown in the Dubai property market. So if you are looking for investments with assured returns then Dubai property market is the right place to invest.

Firstly there is a new type of landlord – homeowners who are unable to sell their properties are renting them out. The homeowner may set their rental cost at only the amount that they need to cover the mortgage rather than on market rates and also at a rate that will as good as guarantee a tenant.  The condition of homeowner property is also generally of a very high standard and as a result this new competition drives down previous market rates.  This generally affects larger, family properties rather than smaller flats.

Availability of finance is dramatically reduced and as a result the profile of a property investor has changed.  Prior to the credit crunch no deposit was needed – a mortgage could be given on the expected yield provided the rental yields were 125% of the mortgage repayments.  Now, a standard 25% deposit is required and the applicant must have a good credit history.  When mortgages were easily obtainable, buyers could turn around a property quickly i.e. buy, renovate and sell on at a profit, and then repeat the process, cashing in not only on the price increase due to the renovation work but also on the cash increase from the rising property prices.  Now, the profile of the property investor will be someone who has cash for a sizeable deposit, a good credit history, and someone who is willing to hold onto the property for a few years waiting for the property market and economy to turn around. 

And for the newer property developers?  Well, for some who kept securely on top of the figures or those that did not overstretch themselves then they should survive the downturn.  But for those novice property developers who perhaps bought property without fully researching the possible pitfalls, well, they could be in trouble.  If they were assuming to sell on their property quickly and at a profit, they are likely to be selling it at a loss, if they can sell it at all.  Or, possibly they are unable to rent out their property and need to cover the mortgages themselves.  Or they have taken on too many properties and find that their own employment is at risk and their main source of income will not be the safeguard it was.  Or they were keener to buy a set number of properties rather than buying property that met strict criteria i.e. properties that would yield a set positive cash flow each month.  Or they have come to the end of a mortgage deal and now the mortgage rates for buy-to-let are less favourable.  The list could go on…

However, for the property investor who ticks all the right boxes 2009 could be a good year.  The key is that you are credit safe in order to secure a mortgage.  If you can secure a mortgage or have enough cash, then you will be able to find some bargains, particularly in the latter half of the year as the recession continues to bite.  If you are thinking of buying an investment property you need to consider the five following points:

1. Consider it to be a mid-long term investment – the property market is likely to fall and then stabilise for a few years before rising again.

2. Your expected rental yield has to be realistic and has to cover the costs of the mortgage, insurance, maintenance costs and void periods.

3. Although interest rates have fallen again, they will go back up at some point – you need to factor this into your costs, or choose a mid to long term fixed rate mortgage to avoid unfavourable rate changes.

4. Research and know where you want to buy property and be sure to stay within this patch – your rental yield depends on it.

5. Always make a low offer when purchasing, stick to your figures and know your limits.

2009 could be a great year for property investors providing you research, plan and take care at every turn.

Commercial property  investors received another battering  as a raft of bearish forecasts and store closures poured more gloom on the retail sector.

As the numbers of retailers closing their doors,  moved from a trickle to a steady flow, store closures were forecast to rise by 27,000 by the end of February, leaving one in 10 outlets across the UK empty.

Experian, the market analysts, says a combination of store disposals, administrations and branch rationalisations would see the vacancy rate jump from 7% to 15% by the end of the year, a record level.

Meanwhile, property consultants King Sturge forecasts that commercial property values could fall a further 15% in 2009, after a 25% drop in 2008. Office space will be the hardest hit, says King Sturge, suffering a 50% drop in value from its peak, followed by retail at 40% and industrials at 35%.

The sector’s downturn has hit the performance of UK commercial property funds, with the average fund in the Investment Management Association (IMA) Property Sector recording a 30% loss in the past 12 months, according to Lipper.

This has affected sentiment, with retail investors taking a net £117m out of property funds in October, according to the IMA.

But some are bravìng the gloom . Fidelity International claims that the next 18 months “will offer the best opportunity to acquire commercial real estate in a generation”. Its veteran stock picker, Anthony Bolton, said in early December that although capital values still had a long way to fall, sector yields, which were about 6.5% at the time, were “attractive”.

“Instead of cutting their losses, current investors should sit tight and take a medium to long-term view as we believe there will be a turnround in the next 12 to 18 months,” says Gavin Haynes, investment manager with Whitechurch Securities, the financial advisers.

One of the sector’s biggest funds, Aviva’s £1.9billion Investors Property Investment, formerly the Norwich Property Trust, expects more pain in the short term, but says prospects are very favourable over the long term. “We see 2009 as a good opportunity, if not an unprecedented opportunity, to buy at exceptional value,” says David Skinner, strategy and research director with Aviva Investors.

Skinner says gross initial yields for the sector are likely to have risen to about 7% since Bolton’s comments.

But some advise against a hasty return to commercial property funds. “It might be tempting to improve yield, but it’s too soon to move back,” says Mark Dampier, investment director with Hargreaves Lansdown. “Anything that requires credit is going to have a hard time and we are going to see more spaces for rent and more defaults.”

Brian Dennehy, managing director of Dennehy Weller, agrees that it is “too early” to return to equity-based investments in property and expects a recovery won’t be felt uniformly. “Those funds more closely correlated with the stock market, such as Reits, are more likely to pick up sooner, compared with funds that invest directly in bricks and mortar,” he argues. “Property share funds have taken a bigger battering, but the way the cycle works, they will bounce back much faster and further than bricks and mortar.”

Although this week’s forecasts have shed more gloom, some fund managers say they won’t be making drastic changes to their portfolios.

“The way to get through this is not to juggle allocation and jump from retail to office and back,” says Don Jordison, joint manager of Threadneedle’s £32million UK Property Fund, which has held 55% in cash for the past 12 months and is one of the sector’s best performers. “Our strategy has been to diversify from risk. We don’t invest in trophy assets, and avoid property developments.”

About UK Business Property

Whilst there are more than 20 portals covering residential property in the UK the commercial property market remains relatively unserved, with no site having a majority share of the total available commercial property listed. The internet has taken a significantly greater share of all advertising spend each year as it continues to prove that it is the most effective medium for advertisers to reach their audience.

Traditional estate agency methods remain quite successful in reaching the local market around a property, but do not capture leads from the national and international markets at all well. With increasing mobility of populations and business in the global village, it makes sense to expose commercial properties as efficiently as possible to the whole market. In 2006 there were 6 million searches (based on figures from Yahoo Search) made on the internet in the UK for commercial property of all types. Many of these searches will be fruitless as major search engines do not expose many of the available properties at present.

UK Business Property aims to change this by offering commercial agents important incentives to bring all their properties to the whole market. By linking to UKBP agents will bring more traffic to their websites. For agents who do not yet have a fully featured search on their website UKBP offers it’s advanced search functions free of charge, in an easy to implement solution. The advantage is that you keep your visitors on your site and build your brand in your local market, while receiving leads from a national and international audience.

UKBP is committed to supporting agents, with advantageous Agency Terms and a profitable opening offer to it’s Founder Members, who Register and upload their properties before 28th February 2007.

It was back in the early 70s when only half of the UK’s population owned a property. However, people came to realise that property investments tended to be fairly stable for extended periods of time, while other types of investments tended to lag behind in growth or fluctuate somewhat. Compared to stocks and shares, property investments provide a real and tangible asset and are considered very dependable.

With the value of land rising nearly tenfold in the last two decades, and the profits earned in the value of the housing market even more impressive, investing in property has become a more lucrative option. Now, property investment has become a far more conventional investment vehicle that’s easily accessible to investors with understanding and insight to recognize solid medium to long term investments.

However, despite all these positive aspects of investing in property, the road to being successful in this arena is littered with individuals who have committed investment mistakes and paid dearly for them. Thus, accomplishing your property investment goals necessitates that you fully equip yourself with the right arsenal of tools needed to help you survive the journey to successful property investment. There are many resources out there that can guide you in the right direction. One of them is the investment property seminar.

An investment property seminar is your portal to the world of the property market. It is where you gain knowledge on the ins and outs of property investments. Aside from educating you on the investor rules of thumb, property investment seminars aim to teach you how to: recognize the different types of investment property and identify which one suits you best, analyze property for cash flow, buy property to make money, buy with no money down, determine when it’s a good time to buy, and avoid mistakes other investors frequently make.

These seminars are often conducted by property investment managers, specialists and teachers who impart their knowledge to those who can benefit from it. Key people with extensive knowledge and broad experience in property investments are usually invited by these discussion groups to share their know-how and expertise that could help steer the property investor hopefuls on to the right track and keep them there.

If you are keen on moving up the property investment chain, then you should look into investment property seminars. Such colloquia typically attract prospective clients, property investment company managers, investors and other key people. These individuals, who themselves are looking to network and develop new business contracts, would be instrumental in the success of your endeavour.

Investing in property is almost certainly the largest financial decision and commitment you will likely take on. Because of the enormity of the decision, the need for you to get yourself fully prepped up should not be overlooked. With investment property seminar opportunities offered in the UK, investing with the correct strategy for your specific needs could soon become a reality.

Location, location, location. This is what property investing is all about. Just as full-time property investor Alan Forsyth stresses: The location of a property commands the profits you bring in and capital growth it provides. However, not all investors are knowledgeable enough to recognize a profitable location.

Many investors, especially beginners, tend to be shortsighted and limit their sights to the area where they live. While this may seem the most sensible decision, what these investors do not realize is that they are curbing their chances of finding profitable opportunities for the long term. In comparison, professional property investors sometimes go out of their safety zone and scout farther out of their area to find profitable properties.

If there’s one thing that novices to property investing should avoid, it’s restricting themselves to being partial to areas just because they would like to live there. Instead, they should concentrate on the following: the potential returns, expenses involved in buying and selling, costs of loaning money, and the appeal the property will have on prospective tenants or buyers.

Thus, building wealth through property investments mean that you need to find a location poised for capital growth, which means places where values in property are expected to rise, allowing you to build your wealth and expand your portfolio. Some aspects that suggest growth are: a developing economy, places where demand for properties exceeds supply, and where costs of borrowing are low.

Now, you might be the type of investor who wants to make sure that your property will only suffer less when the market adjusts, and which will likely hold its value, making the investment a stable in the long-term. Here are some pointers to consider:

1. Quality. If you want an excellent long-term bet in an uncertain market, you have to make sure that the property is of good quality in addition to excellent location. This may mean houses with unique features, or it could be located in a pretty town that will have people yearning to live there, or being in close proximity to schools or amenities. These factors win over buyers and make the place more resilient to any declines in the market.

2. Popular locations. There are certain places that seem to constantly attract buyers. These include locations by the seaside, market towns, appealing suburbs with family houses, and good commuter towns. What all these places have is a mixture of healthy demand and inadequate supply.

3. Buy in places with established reputation. Be on the lookout for areas that have been left behind in the property boom. In times when the market is strong, the surge extends outwards and buyers tend to move to the fringes. During a slow market, the tide will retreat, prompting values to decline faster at the edge.

Building wealth out of investment properties is not difficult if you have the determination to succeed and the knowledge to guide you in the right direction. By following the advice and the footsteps of property experts like Alan Forsyth, who offers relevant advice and educational courses for investors, you will be well on your way to becoming the next successful property investor.

Real estate area professionals all over the country have dominated their local markets by understanding, mastering and investing in a real estate area as little as a square mile. No city in the country is too small for you to establish a set real estate area, implement these techniques and dominate the local market. Make yourself known as the go to real estate area professional with a system of effective techniques:

Place a real estate ad in a local newspaper that is heavily distributed in your real estate area stating that you buy foreclosure properties. A well written “We buy foreclosure properties” ad will attract several calls per week from motivated owners in your real estate area that need to sell quickly. These owners have recently discovered that they need to get out, and you will find many of the best real estate area investment foreclosure properties come unsolicited through these types of “feeler” ads.

Partner with a Real Estate Agent who works and thuroughly understands your real estate area to find investment real estate foreclosure properties. Dozens of real estate area agents are searching for a strong motivated buyer like you who is willing and able to close the deal. Getting a professional and knowledgeable realtor on your side who know the real estate area is a strong method that costs you absolutely nothing. Give them the specific criteria about the type of foreclosure properties you are looking for in a defined real estate area and send them searching.

Direct Mail is one of the strongest ways to access the undervalued foreclosure properties in the real estate area. You can talk directly to the owner who is still in the pre-foreclosure stage and negotiate a nice discounted price on the property. There will be fewer investors focused so intensely on your real estate area. Direct mail postcards that are sent out to your real estate area on a regular basis lets Owners know that you are sticking around and care about the real estate area you invest in.

Word of mouth is a technique that all the good investors use to become famous in their own real estate area. Let it be known to everyone you come in contact with that you are a real estate investor who specializes in buying foreclosure properties in your real estate area. You should make some business cards as well that say “I buy foreclosure properties” and hand them out to everyone you know in the real estate area. You will be amazed what this will do for you.

There are so many excellent ways to dominate your real estate area and keep the right kind of foreclosure properties coming to you for months and years to come. The idea is to work smart, not hard, don’t be shy and to let the tools that are made available work for you. Define your real estate area and try a few methods of finding foreclosure properties until you find the best one that works for you.

Many properties have repossessed this year. Due to recession, there has been an increase in home repossession. According to a survey, there were nearly 19,000 properties that were repossessed in the first half of 2008. It is not easy to digest who have lost their houses. If you are planning to buy your dream home at a reasonable price, you can look for those repossessed properties which are now available for auction, at a lesser price. If you would have purchased a new home you would have paid 50 percent more but if you buy the same house through auction you will pay half the amount. In the past three years there has been an increase in the percentage of repossessed properties that are auctioned by over 300 per cent. In numbers the repossessed properties that were auctioned were nearly 3,102 in the first half of 2008 from 800 in the first half of 2005.

A survey from the Royal Institute of Chartered Surveyors tells that the properties that were sold easily through auction over the past three years are going through a bad phase due to credit crunch. But there is a plus point with less competition in auction you can bargain for the property at a price you wish to buy. Many bankers and lenders sell repossessed properties on a single day itself because they want to receive their amount and so they don’t wait for achieving a higher price. Due to this many properties are sold at a low price which is enabling investors to get some excellent deals. Even newly build flats are being sold at huge discounts. If you buy a property at auction you can save as much as half the value of the property. But remember before you step into the auction room do your homework well.

See to it that you auction the property at a price that you can afford, because if you raise your hand once you have to buy the property. The timescale that is involved in a property auction is much tighter when compared to real estate agent. If you’re planning to buy a property through auction see to it that your finances are in place, as there is limited time frame. You have to make 10 percent of the purchase price on the day of auction and the rest within 28 days. So contact a lender in advance who will help you out. Many lenders will not be able to process the mortgage application in such a limited period of time. So it would be better if you take guidance of a good broker. Remember to inspect the property properly before going for a bid. Some auction properties have legal minefields like bad titles of ownership. So try to spot it in advance. On the day of the bid you should have 10 per cent of your maximum bid, solicitor’s bid, two forms of identification and auction catalogue. If you don’t carry these don’t go for a bid.

Bulgarian property sales are more interesting than ever as more and more investors take notice in all of the beautiful property in Bulgaria. Over the last couple of years investors are looking into Bulgarian property sales because they have been proven to be more reliable than property sales in other countries, including the United States. Many investors have lost interest in Western property sales because they have not been reliable enough as the booms always bust.

Bulgarian property sales are much more promising than sales in other countries because they are not burdened by inflation and property that is valued at dollar amounts that it could never actually sell for. Bulgarian property sales have so much more going for it because Bulgaria has all of the natural and economic factors in place to make it last. Bulgarian property sales are not here and popular for a period of time, Bulgarian property sales will continue to be strong well into the future.

If you are interested in Bulgarian property sales you will want to research the past as well as current Bulgarian property sales transactions. This will give you an idea of what you can expect from Bulgarian property sales. It’s important when looking into Bulgarian property sales to remember that the country has a lot of different things to offer you. You can get into commercial Bulgarian property sales, residential property sales, and rentals, too. There is so much that Bulgarian property sales has to offer an investor with a lot or just a little experience that you can pick and choose what sort of Bulgarian property sales you might be looking for.

If you are new to Bulgarian property sales you may want to consult with other investors and learn all that you can about Bulgarian property sales before you invest. There are many different types of Bulgarian property sales, but the Bulgarian property sales near the ski trails, hiking trails, and the beaches are the most popular for obvious reasons. Bulgarian property sales that are near areas that are frequented by tourists are generally the Bulgarian property sales that are most sought after. Bulgarian property sales are all forecasted to do unbelievably well, but it’s always a good thing to really research Bulgaria as well as consult with others that have some experience in Bulgarian property sales before you jump in with both feet. Even Bulgarian property sales requires some thought and some careful planning so be sure that you know what you are doing before you get in too deep with Bulgarian property sales.

If you want some local input on Bulgarian property sales you might want to get in touch with a local realtor. While they may not be able to give you all of the information on Bulgarian property sales you need to invest wisely they can give you accurate market information, they can let you know what is selling and what is not, and they can let you know the market trends in the way of ups and downs in the market. Generally there is not a better place to get information about Bulgarian property sales than from people who are there and are immersed in the market. New investors and old investors as well as individuals will find just what they are looking for in Bulgarian property sales.

In a nutshell, that is the basic question at the back of our collective subconscious when we talk about the real estate bubble. If you turn on the TV, listen to the radio, or even surf the internet, you’ll notice that there is a lot of people talking about the “Real Estate Bubble”, and asking the question, “when is it going to burst? With property prices seemingly on the rise and rising quickly in Tampa. There is a lot of talk about a real estate bubble in the US and dire predictions that the so-called bubble could burst, leading to a lack of confidence on the part of investors and people seeking a second home.

At the root of the Real Estate Bubble Myth is the fact that interest rates are on the rise and the inexplicable truth is that, all of a sudden, everybody is so worried and concerned about it. Contrary to the belief of many ‘bubbleologists’ and the uneducated guesses of ill-informed consumers, a rise in interest rates is actually a welcome variable for the economy and, moreover, it is specifically the tool needed to keep a bubble from bursting. In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing.

You can profit in any real estate market, bubble or not, when you do your research, understand your location, buy smart, improve the property, and sell with Marketing Psychology strategies. These folks have been conditioned to believe what they believe most likely from the experience of the stock market bubble of 2000, and maybe the 1990′s when the real estate market was hit hard in many large metropolitan areas across the country. While diversity is always a good idea and placing all of your investment funds in one vehicle, such as real estate, is never a good idea; there is reason to believe that the real estate bubble in the US is not about to end any time soon.

So therefore, there is no valid reason to believe, under the circumstances, that consumer confidence applies to everything but real estate and that an economic bubble would affect only real estate markets and nothing else. Whitney says that while there is no national real estate bubble, we may see some changes in local markets ranging from a slow-down in the rate of valuation increases to some slight declines in value. Another part of the answer is in the fact that the real estate bubble is extremely localized – and it’s localized in some of the larger media centers around the country.

Among other things, it means that the dangers of a real estate ‘crash’ are as localized as the effects of the real estate bubble. It’s a fact that talk of a real estate bubble has the attention of consumers. Before you give any substance to warnings about a “real estate bubble,” look closely at the source.

After looking at the numbers, it’s clear that Phoenix AZ real estate bubble concerns are overstated. Given these facts, it’s no wonder so many people are jumping on the real estate investment bandwagon. In San Diego in particular and most other major metropolitan real estate markets, it’s quite acceptable to acknowledge and embrace the double-digit real estate appreciation of the past.

In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing. You can profit in any real estate market, bubble or not, when you do your research, understand your location, buy smart, improve the property, and sell with Marketing Psychology strategies. These folks have been conditioned to believe what they believe most likely from the experience of the stock market bubble of 2000, and maybe the 1990′s when the real estate market was hit hard in many large metropolitan areas across the country.

There has been some speculation that the wild investment in the real estate market and they hype of outrageous investment returns has no where to go but crashing back down to Earth. Two of the strongest industry trade associations, banking and real estate, have been waging a battle over the right of banks to offer real estate brokerage to consumers in addition to other financial instruments such as mortgages, securities and insurance which they currently market to customers. The headlines threaten a correction in real estate prices, projectionist real estate trade associations, traditional versus Internet brokerage business models and a consumers right to a competitive marketplace for real estate services.

Before you give any substance to warnings about a “real estate bubble,” look closely at the source. Try to obtain at least 2 points of view before coming to a conclusion. Don’t let fears of a real estate bubble stop you from reaching your financial goals.

Primarily, there are two choices for potential property buyers – either explore the listings with Real Estate Agents or try out the For Sale By Owners (FSBO) market. The reasons for selling the property may be many, but the modes of selling are mostly these two. Obviously, both of these modes have their pros and cons but as a buyer, you must know the ins and outs of the concept of FSBO before deciding to buy property directly from the owners.

Here are a few things you need to know about property for sale by owners to help you make an informed opinion about the actual transaction.

Advantages of buying property from owners direct

Buying property directly from the owner entails immense benefits for the buyer. These benefits include -

No Commission: Buying any property that does not involve a real estate agent is financially beneficial for both buyers as well as the sellers. It saves a hefty commission amount for both parties of the transaction, who would’ve otherwise spent a large amount of money as the Agent’s cut or Real Estate Agent’s Commission. The percentage of this commission varies from country to country and agent to agent, but invariably, this amount is significant and could very well pinch the budget investors.

No Heckling:

From The Agents: If you are dealing through a real estate agent, chances are that you will be constantly heckled and convinced by the agent into buying ‘A’ or ‘B’ property. The only motive they have is commission from both the buyer and seller, while you may have several other considerations and requirements to meet before you actually finalize your purchase. For instance, mortgage conditions, arrangement of finances, sale of another property to meet financial requirements etc. Amidst all this, if the real estate agent constantly heckles you, the transaction seems more of a burden and invariably, wrong deals are entered into in such a hurry.

More Choices:

With real estate agents, you are offered a limited choice of properties to choose from. But the FSBO listing can have numerous choices for the buyers. And moreover, you are free to choose and explore the properties at your own convenience, unlike the dealings with real estate agents in which you are bound by the timings and convenience of the agent.

More Scope For Bargaining:

Rest assured, most of the time, the FSBO properties are priced on a higher scale than the actual market price. This gives you more chance for bargaining by showing the seller the prevailing prices. Moreover, while you are dealing directly with the owner, this gives you a better handle over the negotiations than dealing through an interlocutor (read ‘real estate agent’).

Chance To Strike Outrageous Deals:

One of the primary reasons for the owners to sell the property directly is the requirement for immediate cash to meet personal commitments.

Disadvantages of buying property direct from owners

Along with the benefits, there are some crucial disadvantages associated with buying property directly from the owner. These pitfalls include:

Price Uncertainty:

Dealing with a real estate agent gives you an ample idea about the approximate prevailing prices of the desired property. However, buying property FSBO may not give such a luxury to the buyers, as the owners usually tend to overprice their property. Of course, the bargaining option is always available, but if you don’t know the trends and prevailing market price, it’s difficult to effectively bargain also.

No Expert Advise Available:

The FSBO property is not open to any kind of advise by the real estate experts simply because they don’t have access to these properties. The condition, location, scope for appreciation etc. are all important aspects for any property. And you have to rely on your own instincts and acquired knowledge while dealing with FSBO properties.

No Expert Assistance Available:

A good real estate agent helps you all the way till the registration process is complete. These services are vital especially for the overseas investors who don’t have much acquaintance with the country or region. However, you will alone in the case of buying property FSBO. You will ll have to extend time, energy and money to hire a local attorney or other specialist’s to guide you in the peculiar procedure of the registration of a property.

Lack of Technical Expertise on the Part of Owner:

An owner of the house may not be aware about the actual covered area of each portion of the house. And moreover, the measurements of individual rooms, kitchen, bathroom etc. are, generally, unknown to the owners. This is an expert’s job and only a skillful real estate agent can tell you the accurate measurements and details about the property in question.

These are some of the important aspects that a potential buyer of the property FSBO should be aware of. Otherwise, there is no rule of thumb as to whether you should buy property FSBO or not.

For those who are looking for an excellent way to generate outside income, the commercial real estate industry is a great way to go. Many people have begun to invest in commercial real estate, and since this type of real estate is continually being purchased and sold, it has become an excellent way to invest money for a guaranteed return. Before one becomes involved in the commercial real estate market, it is highly important that they understand the commercial real estate industry and its many surrounding components.

A Basic Definition of Commercial Real Estate
First and foremost, it is imperative that one understands a basic definition of commercial real estate. Essentially, commercial real estate includes various real estate properties that have the potential to be able to generate outside revenue or even income for the owner. Whether the property has immediate potential for generating income or revenue immediately, or perhaps in the future, it can still be labeled as commercial real estate.

A Desirable Investment
Commercial real estate is an excellent choice for investors for a variety of different reasons. One of the main reasons that investors find commercial real estate to be such a pleasing investment is that is brings about both long term and short term financial benefits. In the short term, commercial real estate can help you bring in a better cash flow from the use of the property, and at the same time, in the long run the property will only appreciate in value, which will result in long term benefits should you choose to sell. Most investors also find that there is a lot less risk involved with commercial real estate than there is when dealing with other types of real estate. If you purchase apartment buildings or a strip mall, the risk of your investment will spread out among those who are renting from you, and even if you lose one of your renters, you still will be making money and seeing a return from your investment.

Commercial Real Estate Properties
Another positive benefit of commercial real estate is that the scope of properties that you can invest in is quite large. Commercial real estate includes various different properties that make excellent investments. As long as the building consists of more than four units, it can be considered a commercial real estate property. Commercial real estate also includes other properties such as strip malls, apartment buildings, RV parks, industrial parks, mobile home parks, and commercial centers.

Jobs within the Commercial Real Estate Industry
There are a variety of different jobs that are included within the commercial real estate industry, and all of them benefit from this excellent market. The investors have a very important job within the industry, since it is their money that is being used to make the property develop and become prosperous. Builders too have an important job, and many times they work within the commercial real estate industry to build new structures on commercial property such as apartment buildings or shopping malls. The lenders have a very important job, and they work to make sure that investors get the loans and mortgages they may need to be able to purchase commercial real estate properties. Also within the industry are the brokers who represent the owners and deal with the sales and property transfer issues. Last of all, but certainly not least, are the users who actually put the money in the investor’s pocket.

Financing Commercial Real Estate
Those who are planning on being involved in commercial real estate need to consider how they can finance any commercial real estate purchases. While few people can actually just purchase the property with money they already have, most people are going to be turning to other methods of financing the property. More than likely you are going to need to go to a lender to be able to finance any commercial real estate that you want to purchase, but there are a few things that you can do to make the process smother.

First of all, you will want to make sure that you have a business plan. You need to be able to show the lender why you want the property and how you plan on making it a successful investment. It is also important that you have at least a portion of the money needed for the property saved up so you can show that this is a serious venture and you are ready to make a personal investment in its success. Also helpful is a current appraisal of the property you are considering. This will help show the value of the property to the prospective lender. Having an attorney to help you and to check out legal issues will also be important, and in the end you should always compare several lending offers before making a final decision.

Getting Started
For those who are interested in commercial real estate and the financial benefits that can be enjoyed, there are many ways to get a start in the business. One of the keys to getting started is to glean all the information about the business that you can, whether from reading books, searching the internet, or speaking with friends and business colleagues that may have experience in commercial real estate investing. Checking into the area you live in and getting a look at what kind of commercial real estate is available and what the prices are running can help you begin to get a closer look at the costs and the availability of commercial real estate in your area. Attending zoning and city planning meetings may also give you insights and ideas for getting started as well. Lastly, one of the best things you can do is to start building a network of friends and business acquaintances that already have their foot in the door of the commercial market. Learning from their successes and mistakes can help you on your way to becoming a successful commercial real estate investor.

For any investors serious about buying property in Dubai, one should be sure to have all one’s finances sorted out before you begin searching for the ideal real estate.

Due to the fact that the purchase process, once underway, can progress extremely rapidly and should a property investor not have a mortgage agreed upon or should the investor in question not have enough money to hand the sale – it could result in the whole process falling through as a result of the continual fast-moving nature of the Dubai property market.

Many investors, internationally and locally feel that in direct contrast to the “highly sophisticated sales process in Dubai which sees developers and estate agents presenting potential clients with superior show homes to view and lovely brochures to peruse, the property buying process in Dubai currently lacks some sophistication and transparency.” – This is not good news when sales agents seek to ‘clinch’ a deal with a potential purchaser.

Read on to see how to avoid the common issues that investors may encounter during the buying process in Dubai.

Altogether there are so many developments which are in the process of being built, that an investor will have to spend a considerable amount of time comparing the qualities of any given development, the developer and the specific properties characteristics and features, all this needs to be compared with the investors available funds, to ensure they get the best valued property for their budget and investment criteria.

When one attempts to arrange a mortgage (in order to buy property in Dubai) an investor can either do this in their country of residence or locally in Dubai. An increasing amount of financial institutions are now offering more products to non-resident purchasers on a monthly basis, therefore it is extremely beneficial as an investors to ‘shop around’ for the best interest rates and payment terms.

Should the investor require financial assistance in order to purchase a resale property, he/she will have to have a valuation completed on the property to satisfy the financial institution and further show that the property in question is indeed worth the asking price.

To help smooth matters out, it is advisable to have a solid idea as to what kind of investment you would like to attach yourself to…before you begin searching!

The good news for purchasers looking at buying investment property in Dubai is the fact that there are no property related taxes to speak of. Translated, this means that there is only a minimal additional outlay with buyers having to cover lawyer’s fees he ongoing maintenance of the property as well as any shared areas or facilities.

For all those investors seeking to gain profits from their purchase immediately, there is always the option of purchasing real estate in Dubai that is on resale.

It is important to bear in mind that because there is currently no formal conveyancing system in Dubai, as well as no way of finding out who holds the freehold title of any given property, an investor is encouraged to ensure the property transaction for any resale unit ‘goes back via the original developer.’

This is critical as it is quite common place for investor’s who are not aware and alert to become the victim of fraud. It really cannot be emphasized enough – an investor interested in any resale property must contact the original developer before signing any contract to purchase (note to self – this is one of the most important issues one needs to contend with when purchasing property in Dubai).

As had been done in the past, many property investors turn their properties over to a secondary purchaser during the construction period already, in order to take advantage of any capital gains already accrued.

When it comes to the buying of a resale property during its construction period, most developers will allow for the resale of off plan property; however some developers are of the persuasion that only the original purchaser is allowed the right to resell during construction.

The secondary buyer, in such cases will only be able to resell property upon completion of the development. It has however become the norm for investors to purchase during the construction phase, as the majority of property developments are still to be completed!

Due to the fact that there are no escrow account structures in Dubai, any money an investor pays goes directly into the developers’ accounts (so as to fund the building process).

The fact that in Dubai, the government has a sophisticated process in place, whereby “any developer wishing to sell property units has to agree to place 50% of the price of each unit in a bond and only then is he allowed to sell his property.”

Translated loosely, this means that should a developer go bankrupt or renege on a contract in Dubai, the government should have sufficient funds in the bond to get the project completed.

Such insight into the buying and selling process of Dubai’s property market is imperative and undeniably necessary for all potential investors to be able to equip themselves with all the needed information to speedily come to an investments choice, which will prove lucrative and highly successful.

Canada is one of the largest countries in the world, whose territory stretches from the Atlantic to the Pacific oceans and from its border of over 5,000 miles with the USA to the Arctic Circle. Three quarters of the population lives within 200 miles of the US border.

Much influenced by its economic ties to the USA, Canada also has historical links to the UK (it is a member of the British Commonwealth) and to France (French is the official language of the province of Quebec, which is three times the area of France).

Canada is a parliamentary democracy administered from Ottawa. There are 10 provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan. There are also three territories: Yukon, Northwest Territories, and Nunavut. Such matters as health cover, property title and rental regulations will vary from province to province. There are also local and federal taxes.

Non-residents are able to buy property in Canada but for those who wish to live in the country there are a number of immigrant programmes including those for skilled workers, business class and family class immigrant.

Most property is held in ‘fee simple’ ownership. Condominiums are a special type of fee simple known as ‘strata title’, similar to UK commonhold and involving maintenance obligations. Most couples purchase property as a ‘joint tenancy’ since upon the death of one the ownership reverts to the surviving joint tenant.

Those buying property have a responsibility to use ‘due diligence’ to discover any patent defects. If no inspection is made, the buyer has no recourse for obvious defects that should have been spotted.

Sellers, however, must not mislead buyers about ‘latent’ defects that could not reasonably be expected to surface in an inspection.

Most houses are bought and sold in the spring and early summer, when prices are likely to be higher but choice greater. According to the Canadian Real Estate Association, British Columbia tends to commands the highest house prices, Saskatchewan, Newfoundland, and Manitoba the lowest.

The real estate body Re/Max, which has over 13,800 members working in 600 offices across Canada, is predicting a 6 per cent increase in house prices in 2005, with Edmonton, Quebec city, Kelowna, Halifax-Dartmouth and Vancouver leading the way.

In many cities landlords are required to use a standard rental agreement or lease which specifies such things as the number of rooms, utilities and options such as parking or storage space. The agreement will most likely be for at least one year, with tenants paying an initial payment, possibly the first and last month’s rent, and perhaps a damage deposit.

Property appraisal or property valuation is the process of determining the value of the property on the basis of the highest and the best use of real property (which basically translates into determining the fair market value of the property). The person who performs this property appraisal exercise is called the property appraiser or property valuation surveyor. The value as determined by property appraisal is the fair market value. The property appraisal is done using various methods and the property appraisal values the property as different for difference purposes e.g. the property appraisal might assign 2 different values to the same property (Improved value and vacant value) and again the same/similar property might be assigned different values in a residential zone and a commercial zone. However, the value assigned as a result of property appraisal might not be the value that a property investor would consider when evaluating the property for investment. In fact, a property investor might completely ignore the value that comes out of property appraisal process.

A good property investor would evaluate the property on the basis of the developments going on in the region. So property appraisal as done by a property investor would come up with the value that the property investor can get out of the property by buying it at a low price and selling it at a much higher price (as in the present). Similarly, property investor could do his own property appraisal for the expected value of the property in, say 2 years time or in 5 years time. Again, a property investor might conduct his property appraisal based on what value he/she can create by investing some amount of money in the property i.e. a property investor might decide on buying a dirty/scary kind of property (which no one likes) and get some minor repairs, painting etc done in order to increase the value of the property (the value that the property investor would get by selling it in the market). So, here the meaning of property appraisal changes completely (and can be very different from the value that property appraiser would come out with if the property appraiser conducted a property appraisal).

A property investor will generally base his investment decision on this property appraisal that he does by himself (or gets done through someone).

Egypt, land of Pyramids and Pharos, straddles the Mediterranean and Red Seas, linking Africa, Europe, the Middle East, south Asia. Four times the size of the UK, it has borders with Libya, Sudan, the Gaza Strip, Israel and Jordan, and faces Saudi Arabia across the Gulf of Aqaba.

The strategically important Suez Canal is to the north, running between Suez and Port Said, while the Red Sea tourist resort of Sharm al-Skeikh is in the far south.

Much of the country in between is desert and only 4 per cent of the land is cultivated, mainly adjacent to the 1,000 mile long Nile and the Nile Delta.

The Foreign Office reports that Egypt is hot and dry in the summer, mild in the winter with rainfall increasing nearer the coastlines. Temperatures increase southwards, and on average, these vary between 22 and 37 degrees Centigrade in the summer and 9 and 19 degrees Centigrade in the winter.

Politically stable, in that President Mubarak has been in power since 1981, Egypt is not known for its political freedom and has recently introduced more stringent anti-terrorism legislation.

Under President Mubarak the country has achieved healthy economic growth and is currently around 7 per cent. Even so, despite earnings from its canal, agriculture and service industries such as tourism, the country is dependent on imports and has a budget deficit. Inflation is running at close to 9 per cent.

Egypt is a signatory to all the major UN human rights conventions. But the Foreign Offices says one of the key human rights concerns in Egypt is the widespread mistreatment of detainees and use of torture in police stations, especially in cases involving political detainees although ‘the government has taken some steps to address the problem’.

The Foreign Office also warns that there is a high threat from terrorism in Egypt. ‘Attacks can be indiscriminate and against civilian targets, including places frequented by foreigners’.

There has recently been a strengthening of security measures, including around popular tourist areas.

British visitors (there were just over 1m in 2006), require visas. These can be obtained from an Egyptian Consulate outside Egypt or on arrival for stays of up to a month. Applications for visa extensions should be made at Egyptian Passport and Immigration Offices.

Although there is no limit to the amount of sterling that can be taken into Egypt (larger sums should be declared on arrival) there is a limit of 5,000 Egyptian pounds on the maximum local currency that can be taken out.

According to the Foreign Office, some of the British nationals who have purchased land in Egypt have encountered problems. In parts of Egypt and increasingly, in the area of the West Bank in Luxor, land tenure rights can be restricted by local legislation.

‘If you intend to purchase a property in Egypt we strongly advise you to engage a local lawyer’, says the Foreign Office. ‘It is important that your lawyer obtains an extract from the local land registry to satisfy you that the property or land in question is formally registered. You should again seek legal advice before entering into any contract. Don’t sign anything that you do not understand’.

A list of English speaking lawyers and of translators is available from the British Embassy in Cairo.

Property buyers are also warned that the Egyptian land registry is liable to be out of date or incomplete – although the main cities and resort towns tend to have more reliable records.

Special rules apply, however, in Sharm el Sheikh which limited property rights to a maximum of 99 years. In other areas of Egypt it is still possible to buy freehold properties.

British and other EU nationals travelling to Sharm El Sheikh or Taba resorts for up to 14 days do not require a visa prior to travel – they will receive an entry permission stamp upon arrival. However, foreign property owners in Egyptian must have residency.