Posts Tagged ‘money’

Owning investment property can be a profitable endeavor, even for the neophytes in the field of real estate. The crux of the business lies in finding affordable investment property that is likely to be lucrative. Although there are scads of books, guides and other online sources of information, loads of advice at the outset can often leave a newbie investor perplexed as to what’s the right road to follow. It’s best to know the basics first, and then move on to the avant-garde tips and tricks of the profession.

While searching for investment property keep several options open, including the Internet, paper ads, and even other realtors. However, by purchasing investment property directly from the owner, you can save some hard earned money – since there is no intermediary realtor, no commissions need be mete out. Therefore, it’s better to seek houses listed For Sale By Owner (FSBO). But if getting hold of an FSBO property seems like a cumbersome chore, you may look for hard-to-sell investment property that is listed with realtors. Such properties often need refurbishing and, therefore, can be bagged at a lower commission.

It is recommended that you visit in person the investment property that you wish to purchase. Pictures render a glossy, almost perfect look to everything – the obscured glitches are often revealed on a closer, personal inspection. In addition, you may also survey the neighborhood to get a fair knowledge about the living conditions and the kind of people that inhabit the locality. This information would prove invaluable in a typical remodel and sell scenario – you must know what type of clientele is likely to buy the house, prior to remodeling it.

A thorough inspection can make the difference between a lucrative deal and a money sapping investment. It is best to take a property inspector along with you, when you go for an investment property inspection. The inspector would analyze the house and ensure that it boasts of a solid foundation, is free from any leaks in the water system or any glitches in the heating system, and the floor and walls are in good condition. Whatever the anomalies, you must assess the repair costs and further discern if the deal is profitable or not.

Some repairs, such as mending or replacing heating ducts or air conditioning conduits, can be costly and typically require the services of an expert. On the other hand, some trivial flaws, such as a dripping shower head or bathroom faucet, might well be rectified by you, in order to keep the repair costs to a minimum.

Bearing in mind the advice given here, you could very well excel in real estate, and bag a few money-spinning investment property deals.

Copyright © 2006 Joel Teo. All rights reserved.

Due to the continually rising house prices many people are now starting to turn to property renovation as their way of getting onto the property ladder. The idea of buying an out dated or run down property may not appeal to everyone but if the renovation work is correctly planned out you will end up with a property of your dreams that includes everything that you want and need.

The advantage that you get from opting to renovate a property rather than buying a property is that you get to decide the layout, finishing design and in some cases even where your rooms will appear in your home. Buying a property for renovation has now become the most popular way of buying property in recent times.

In order for a property renovation, whether it is residential or commercial to be successful you need to correctly plan every aspect of it. It is essential that you know what you are getting yourself into and if you don’t plan you could end up paying more money out than you intended to.

If you are new to the process of property renovation then it is important that you opt for a property that needs up dating but isn’t completely falling apart. You should aim for a property that needs a kitchen/bathroom renovation and minor carpentry work. This way you are easing yourself into the idea of property renovation and you are able to undertake your property renovation without any major problems occurring. Diving head first into a major renovation job will more than likely leave you out of your depth and in more cases than not you will be unable to complete the renovation due to mounting costs and inexperience.

If you successfully complete a renovation you will be adding value to your property meaning that when the time comes you will be able to easily climb the property ladder; all of the money that you will invest into your property renovation you will get back in the value that you will have added to your property, making property renovations highly appealing.

This idea of investment opportunity within the property market has inspired people to better their homes and in turn it assists in raising the property values of the neighbourhood.

If you truly want a property renovation to be successful it is important that you keep track of the improvements that you are making to your property and that you know how to handle any problems that you may encounter.

Whether your property renovation is residential or commercial the process of it can usually be broken down into the following processes:

• Planning
• Engineering
• Structural repair
• Rebuilding
• Finishes

When you are looking a property that you are thinking about purchasing for renovation it is a good idea that you take some experts with you such as roofers, damp specialists and structural engineers. These experts from the construction industry will be able to advise you on the safety of a property and whether it is worth investing in for the sake of a property renovation.

Cebu Rental Properties are among the most popular real estate amenities in the world today, as Cebu in the Philippines is one of the most popular vacation areas there is. The area is known for it’s awesome scenery and great activities.

Whether you are an investor or just looking to rent out a property there for your next trip, here is some information on Cebu Real Estate to help you find the best available.

First of all, Cebu Philippines Real Estate is so popular because of it’s pristine beaches, nightlife, and basically anything you want to do is there. The area is always filled with vacationers, but the great thing about it is that it’s not overcrowded, and you definitely have room to breathe, unlike some other cramped locations.

Whether you want to go fishing, scuba diving, or just plain relaxing on the beach, the opportunities here are endless. Even if you have no interest in the water at all, there is plenty to do in the town, and you definitely will not get bored staying here.

So where should you look to find the best Cebu rental properties? Usually I’d say the internet for just about anything without even thinking twice, but for whatever reason, most likely because the Philippines obviously aren’t as advanced technologically as the rest of the world, there isn’t a lot of Cebu property available online as of this writing.

There are a few sites available, and they might be worth checking out, but probably the top way is traditional-asking your friends who’ve either been to the area or are planning a trip there soon, and see if they know of any properties available in the area.

Don’t get me wrong-still check out the internet to see what’s online. Chances are, even among the relatively scant listings for the area, you will still be able to find great Cebu rental properties to fit your needs.

To save some good money, attempt to schedule your trip during a non peak season time, as you will definitely save a lot of cash doing it this way. Obviously, prices can be steep here, even though it’s not in America, because of the sheer volume of people vacationing there every month.

Also, you will save on virtually everything you do there by going during the less crowded months, such as renting surf boards, fishing guides, or anything else you want to do, as there will be less demand.

Of course, finally, make sure the Cebu rental properties you are looking into are within close proximity to the local attractions, as often times you can get taken by someone with a great price, but then come to find out that the condo is very far from the areas you want to be going to.

Good luck in finding the best Cebu rental properties, either for your upcoming vacation or for your next investment opportunity.

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Santorini is considered as the jewel in the crown among all Greece Islands. Due to this reason this island has been splashed universally across brochures, posters, post cards and different Greece travel guides. This unique island fill with natural beauty attracts visitors to enjoy their golden moments and remember their dream tour at Santorini. The heavenly mediterranean atmosphere attracts people from different parts to buy their dream property and use those both resident and business purposes.

The unique looking black-sand beaches, the beautiful sun rise and sun set, sea, history and food will appeal to every tourist to stay at Santorini as long as possible. One may take a relaxing sunbathe or can visit nearby tourist destinations. For those who want to experience the nightlife of Santorini, they will be immersed in the Greek culture, but will be surprised at the abundance of American music that is played for the tourists. The island has a lot to offer for a relaxed lifestyle such as: low crime rate, cheap cost of living, beautiful beaches and a healthy diet.

Santorini is also known for its galleries and wineries which are both great for experiencing the culture of the island. Santorini cannot be visited without visiting the active volcano, which is covered in the famous hot springs. Whatever you choose to do the architecture, scenery and sunsets of Santorini will bring you back again and again.

Not surprisingly, painters, potters and jewelers have been inspired by the pleasant surroundings to set up studios and shops here. Culture lovers can explore a wealth of monuments and ancient sites, there are beach and water sports galore for the adventurous, and a wide selection of traditional authentic tavern and bars for night owls, especially in the capital, Fira.

The Santorini property market is another aspect that appeals to all ages and especially young couples have been so impressed that they have made the move permanently. The growth of property is very high i.e. some prices rise by as much as 300 per cent in five years – sometimes even 100 per cent in one year.

Accessibility is also much easier these days. Santorini international airport receives direct, low-cost charter-flights from the UK; along with regular ferry services and daily high-speed ferries to and from Athens and high-speed catamarans from Crete.

In the last ten years, the communications and infrastructure have improved remarkably, with the construction of high-standard roads, good transport systems, clean drinking water, new sewage and electrical systems, hospitals and a university. It’s accessible all-year-round, but remember, it’s a very small island that slows downs in winter.

Property at Kamari Beach:

The property in Kamari beach is located 15 meters away from the main bus station and approximately 70 meters away from the beach. It is a good spot to build either houses or even stores and make a profit through rent. Since Kamari beach is the most touristic village of Santorini, it could be a good place to invest. The land is 650 sq. metres and its 510 sq. metres could be used for building. At the moment there had been engineering plans for a provisional building but they haven’t been processed to built yet.

As an established democracy, Greece is a fully-fledged member of Europe, which means that for Europeans the purchasing process is quick and simple. It is also giving Spain a run for its money these days on the British package-holidaymaker front, which is good news for anyone planning to rent out their property. There is a great demand during the summer season and many tour operators put properties on their books after they meet government-regulated requirements for short-term rental.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

When putting your property up for sale there are certain strategies that you can employ to reduce the time your house spends on the market and improve the price you may receive at time of sale. The biggest mistake most property sellers make is not understanding the prices that houses in their area sell for. Having a keen understanding of the local property market is vital in achieving a decent price when it finally comes to making a sale.

What must be understood is that the value of your property is not determined buy you, it is not how well you think your house performs as a family home or any improvements you have made. Ultimately the value of your home if defined by the buyers, for those are the people with the money, and their willingness to spend their money should be your main concern. Things that you may think are great selling points may actually harm the sale of your property. Try and put yourself in the mindset of the buyer; if you can appeal to them a sale may be more forthcoming. Here are ten helpful tips to selling your home.

1. Understand the market.

As previously stated it is imperative that you should have an understanding of the property market in your area. Look at the values that similar properties have sold for as this can be used as a rough guide to achieving an estimate of the price you will receive. It may even be worth getting the literature on those houses to show buyers that the price of your property is in line with current market estimates.

2. Make a decision on the minimum price.

After you have seen the property for sale in your local area, work out a figure that will be the minimum you can take. Tell your estate agent this figure but make sure they understand that offers should come in above this figure as negotiation is key to receiving the right price.

3. Get the aesthetics right.

Your first action to make the property more eligible for sale is to focus on the outside, giving the door a fresh lick of paint and ensuring the gardens are well kept is a great way of hooking buyers before they have even entered the property. This work should be carried on inside, making sure you show off the space in your home will make your house more appealing for buyers.

4. Spruce up the neighbourhood.

If a neighbour’s garden is quite messy and there is litter on the streets it can be worth paying local kids for litter picking services and even some gardening. It may make you unpopular with some neighbours but you are moving so it should not be a great concern, after all pursuing a sale should be your strongest consideration.

5. If things look bleak, change tact.

If the strategies you are pursuing for a sale are not working, do not be afraid of trying something different. Increasing the advertising and lowering the price are both ways of doing this.

6. Listen to buyers.

Listen to what the buyers are saying about your property as they look around. Do not take their comments as criticism but instead as advice on how you should improve your home. If they say you bathroom is too dark, make it lighter. The sale depends upon the buyers liking your property.

7. Look at the average sale time in your area.

Look at property for sale in your area and how long it has been on the market for. If your house is taking longer than the average, maybe your price is too high.

8. Get an idea of the services you agent will provide.

Before you sign the sale agreement ensure you understand exactly what your agent is going to do to assist the sale of your house. Write these down so you have proof of the promises they have made.

9. Get repair estimates.

If there are any problems with you house such as the roof or plumbing get an estimate for the price of the work. If a buyer wants five thousand off the price for work and you can provide an estimate for only two, the price you receive should be higher.

10. Make worthwhile improvements.

Improvements can sometimes get great returns on the original cost. For instance paving the driveway for a thousand can usually add a couple of thousand if not more to the eventual sale price.

By following these ten helpful hints you should be able to sell your home in no time; and for the price you want. Be patient and the right buyer will come along that will care for your property as well as you have

Source: Capital gains tax on your property

When selling your property in Spain you may be subject to a Capital Gains Tax (CGT). This tax is on any profit the Spanish government perceives that you have made, which even in the present climate is an issue that many have to watch out for. Currently the rate is set at 18% and can make a serious dent in anyone earnings.

A quick example:
You buy a property for 150,000 Euros
2 years later you sell for 250,000 Euros.
By these basic figures, you have made 100,000 Euros and the government is going to claim 18,000 Euros leaving you with 82,000 Euros.

Well this is wrong!

First you need to calculate your REAL costs of your property.

When you bought at 150,000 you also had to pay a range of costs including 7% transfer tax, stamp duty, legal fees, etc… which to make my life easier will say came to a clean 10% of the purchase price. You now include the money you have spent on the property including the attractive furniture package on offer for only 10,000 Euros that your partner saw and let us not forget the new kitchen for 6,000 Euros!

Now 2 years down the line you intend to sell the property with all the furniture, etc…
Now when calculating your ‘profit’ on the property the figures look a bit different.

Sales price: 250,000
minus the 150,000
minus the 10% (15,000)
minus the furniture 10,000
minus the kitchen 6,000
total costs 181,000
leaving you with a gross profit of 69,000 Euros
with the government claiming 12,420 Euros
which means you net 56,580 Euros

So where am I going with all this. Well quite simple really, although the first example seems to show a nicer figure on what you made on the property, the second includes the real costs on the property. In both cases you made the same money except in the second by including the real costs you were able to lower the figure the government perceived as your profit and thus actually saved 5,580 Euros.

And this is only the start, NEARLY EVERYTHING you have had done to the property, if backed up with invoices, can be treated as cost and can be set against the perceived profit. Tiling the roof, new doors, air-conditioning, light fittings, etc…. This is especially the case for those of you who have had the property for many years and have at one stage or another modernized your home.

For those who have not had the hindsight of saving your invoices, another option would be to come to an agreement with the buyer and set a price for all that is being left. Maybe if the agreed purchase price is 250,000, agreeing that the furniture, fittings, etc… have a value of say 20,000 Euros. That way on the title deeds it is stated that the property is being purchased for 230,000 with 20,000 for everything being left. This would benefit both parties by lowering both the buyer and vendors taxes slightly.

With the way the market is, I thought anything that can help you squeeze a bit more out your sale would be helpful. But remember this is just my guide, as always seek the assistance of your gestor or lawyer to see how else you can make some savings.

Regards
Andrew Belles
Costa del Sol property

Foreclosed houses traditionally and generally have low costs. As a result investing in this market as a real estate investor may turn out to be what you’ve been searching for a long time. This costs invariably are also always below market value but they cannot create good market by themselves and must therefore be invested on. Here are the ways that you can make money from foreclosed properties.

You are well aware that for foreclosed properties to stay alive there initial owners must have found it difficult to afford them and when they were given their foreclosure notices as they just couldn’t pay their mortgage payments, their properties went back to the company or individual who was in custody of the mortgage. Whereas, most homeowners struggle to quickly sell their homes before foreclosure to save their credit many end up failing. If the owners of mortgage don’t sell this properties at a portion of its value they end up auctioned.

One way of getting money from the foreclosed property is to resell them the real estate buyers may in most cases spruce up the proper, making additional repairs here and there and sell them at a profit or safely still sell them without sprucing them as still the foreclosed property can be disposed at a profit with a sale below the market value. The best alternative has always been the former. Here if you are adept at reading the market and you’ve played the card well you may sell the property at a very handsome price.

A further way of making this money is becoming a landlord. Sometimes it becomes difficult to resell a foreclosed property or your forecast is that even when you sell it; it may fetch little profit or give out a loss. In such instances therefore it is prudent to make good repairs and redecorations and rent it. Depending on the foreclosed property we are considering here, the extent of the repair and redecoration varies.

As a real estate investor in a bid to profit from foreclosed properties, ensure you do extensive research be it online, through books, to taking classes and reading guide books. Thais will go a long way in giving you inside information on the various approaches available to successfully resell or rent the properties in question. Don’t forget that information is power and the more you know the better it will be for you to get ahead in the game.

The last but not the least other way of getting good money’ worth out of your foreclosed property is to get it out of foreclosure and eventually make a kill out of selling it above the market price. This has not been a favorite of many real estate investors as it takes too much time. But if you have time at your disposal and the market forecast an excellent year ahead then hold out and expect to strike gold. This may also apply to renting where tenants will be forced to pay more as compared to if they would have rented a still foreclosed property.

Refinancing rental property can be a smart move to reduce your interest rate and monthly payments so that you can enjoy more cash flow and rental profits month to month.

Another way that you can benefit from refinancing rental property is to do a cash out refinance to tap into your property’s equity. This is a way for you to get you hands on ready cash without having to sell the property and more importantly, without having to pay capital gains taxes.

Refinancing Your Rental Property to Enjoy Lower Mortgage Rates

With a conventional refinance, you simply choose a new lender who will pay off your old housing loan. You’ll owe the remaining amount to the new lender at a lower interest rate.

The key to benefiting from refinancing rental property is to do it at the proper time.  Let’s assume, for example, that you owe $50,000 on a rental property valued at $150,000 and your interest rate is 7%.  Since you purchased the property, interest rates have fallen to 4%.

You could do a straight rental property refinance and take out a new loan for $50,000 at 4% interest. Your mortgage will be significantly lower, but your tenants are still paying the same monthly rent. This translates to extra cash in your pocket each month plus less total interest paid over the life of the loan.

Refinancing to Cash Out Money from Your Rental Property’s Equity

Instead of borrowing the exact amount you owe from the new lender, you can actually borrow more. Returning to the same example above, let’s say you still owe $50,000 on your property that is worth $150,000. You can choose to borrow $100,000 instead and walk away with $50,000 in cash.

This is a great way to access the equity in your property if you don’t want to liquidate and sell off the asset.

If you are thinking that this will increase the amount of interest you pay over the life of the loan, you are correct. But do realise that this is offset in part by your renter’s payments and you could very well make other investments with the cash you pocket.  Best of all, you won’t have to pay a single in capital gains taxes.

Which Type of Refinancing is Right for You and Your Rental Home?

Refinancing rental property to lower your interest rates and monthly mortgage payments idea if you don’t need the extra cash or if your goal is to pay off the property quicker and owe it debt-free.

On the other hand, a cash out refinance is a smart move if you need the cash to pay off other high interest debts such as credit card bill or car loans. You can also reinvest cash in other investments or spend it for your own enjoyment such as a new deck for your house or a family vacation. 

Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on refinancing rental property, visit his website today for step-by-step real estate guides, free resources and forms.