Property Investment

Try These Great Tips For Selling Property

Was anxiety holding you straight back from your true real estate sales power? Would you get stuck in a limbo, not sure if you’re taking the steps that are right promoting the right homes and landing the discounts? These tips could possibly be what you will need to build a larger confidence in attempting to sell real estate, advertising you to ultimately better achievements.

Clearing out closets and other storage space areas will allow potential customers to imagine their very own things for the reason that area! The more a possibility can easily see your house because their home by picturing by themselves, their loved ones customers and their particular things they will have in buying it inside it, the more interest. Bare 50 % of their closets, compartments and cupboards just as if to welcome the owner that is new you’ll have one much sooner!

Staging home is usually the utmost effective apparatus for offering in a market that is difficult. Keep your residence since neutral as you possibly can, removing pictures that are personal painting wall space an ivory, light brown, or off-white. This permits a buyer that is potential visualize themselves given that homeowner, instead of your.

Although this is the task of one’s agent, you really need to nonetheless be sure that pictures of your home see good if you’re trying to sell. These pictures is a first impression for their buyer and also you wish to be sure that it shows properly. Have a look at more properties and compare their photo style to theirs. Make sure that the photographs revealed are good area photos and not photographs of furniture in a room. You will have more of a pursuit in the proper photos to your property.

Promoting a home in the current market is going to be more tough than it has been in past many years. The home values are not as they was previously when you are attempting to promote your home during the costs that the assessor informs you its well worth, there clearly was a high probability that you will be trapped along with it for a time. Reduce the price a bit and you ought to manage to proceed.

Triumph is never going to be given for your requirements, but that doesn’t mean you can truly be successful at selling real estate that you have to waver in fear of whether or not. You can easily use these tips to boost your overall confidence and gain a greater sense of selling in a market you better understand if you are dedicated and passionate in selling homes.

Residential Vs Commercial Property Investments

Before purchasing a new investment property, you should always consider the differences between residential and commercial real estate investments. Depending on your financial means, expectations and investment plan, you will have to decide which one can be more profitable for you. Most people will invest in residential properties, as this seems to be a safer endeavour requiring less money, however, if you have the means, commercial properties can be highly profitable. You should also consider that while traditional residential property investments might not have very high returns on your investment, repossessed or foreclosed properties, can bring you a net yield of up to 12-15%.

Property Types for Residential and Commercial Investments

Houses of four units or less, to rent to private tenants are usually considered residential properties. You can invest in buy-to-let residential properties, which means that you’ll get the rental yields every month, or purchase the property solely for future resale. Residential property investments vary from more traditional buy-to-let investments somewhere near your own home to investments in overseas real estate, below market value properties or foreclosed houses. Commercial properties are for businesses, and include a variety of properties, from apartment blocks and office buildings to hotels, restaurants, warehouses and industrial buildings, just to name a few. Managing a relatively small residential property is obviously simpler than managing commercial properties, where you will often need a professional real estate management company to assist you. Continue reading

9 Reasons Why You Should Choose Property Investment

Although there are many options for investing, property investment is one of the favorites. There are at least 9 reasons why we should invest in property and not other types of investments:

1. The power of “Leverage”

To invest in our properties have the option to not use 100% of our money, but by using other people’s money (OPM). One of the most common source is the money the bank loans. Depending on the country where we are, we usually can get a loan from banks ranging from 70% to 95%. In this case we only need to spend down payment of 5% to 30% of property price. This also means that leverage is approximately 3.3 to 20 times.

2. Relatively low risk

In general, investment in property is not like investing in the stock market where prices in one day can go down and up quite significantly. Only in certain situations where the economy was bad, property investments may be affected slightly. When compared with other investment types, such as opening a business, saving money on deposit or invested in stocks, property investment has a lower risk than those investments. If we look at the risk compared with income potential, the property has a relatively low risk with good potential income from rents and capital gains.

3. Two sources of income: rental and capital gains

Property investment offers a combination of rental income and capital gains. Investing in property is not only going to give us a positive cash flow but also the potential capital gains depends on property price increment Continue reading

Property Investment Points to Consider

Property investment has always been one of the most common methods of investing capital. Many know that property investment can be a lucrative business option and hence many investors consider it an integral part of their diversified portfolio.

Investing capital in a specific industry like property is a long-term way for individuals or families to obtain financial security for their present as well as future. As property values are rising in many countries, investors can achieve good capital growth.

Here are important points to consider about property investment:

1) The bottom line of property investment is to find an affordable property that can prove to be highly lucrative for the future. Anyone can invest in property and use any number of the many books and guides packed with helpful information that are available on the internet and at local bookstores and libraries.

2) Sometimes this huge amount of information can seem to be complicated and confusing. The best advice is to start from a primary level and then learn some tricks of the trade. If you are a beginner, you must look for a profitable property investment…so seek articles and tips on this.

3) Though the whole scenario of investments is always changing, property investment is still a viable means to enhance your financial portfolio. As time moves on, for example with newer media options of television and internet, new trends in property investment are appearing.

4) In the last decade, a common way to buy and sell property was to buy a house and / or to fix the existing problems. Prepare your property for resale and then sell the house quickly.

5) Residential property investment is the investment that can carry low risk and is not like investing in commercial property where investors have to worry about the conditions of businesses. Property investment loans are not as difficult to get as other types of loans and investing in residential properties can give investors a substantial financial boost.

Investors must consider the surrounding environment. For example, if you are buying residential properties then check whether there are sufficient numbers of schools, hospitals, main roads etc. to support our day-to-day existence.

Also check out the history of capital growth rate in the area in last at least 15 years. Make sure that property investment is worth the capital benefit. You must also consider the population growth rate of the locality.

Investors can also get property investment loans and attain about 106% of the purchase price. However, to qualify for such loans, your financial conditions must be able to sustain your current liabilities as well as the investment home loans. Lenders usually assess your assets, income and credit profile before financing your investments.

Investing in property extensive financial planning, but it also gives you some great tax benefits. Even though the market shifts all the time in the property sector, buying and selling property is always a good industry to be involved in.

If you are planning to invest in property, you need to take advice from experts or you can conduct research on the internet, attend seminars, interact with social groups and then read as much as possible regarding this matter to clear up all your investment doubts. The more you know about market, the better you will become at finding good property investments.

Property Investment

Property investment is considered a lucrative business option. More and more people are buying investment property in order to earn revenues continuously. With property value rising over time, your investment will help attain capital growth. Property investment is a powerful vehicle to earn excellent returns however it does still require knowledge and expertise on your part in order to find lucrative investment deals. Property investment is predictable and solid investment platform than highly risky and volatile stock market.

But if one is reluctant about “what is property investment” it would be pretty hard for him to obtain good return of investment. If one is planning for property investment, he should be aware about it. Thereafter, one should carefully plan where to invest? And finally, how much finance he should manage to invest and who can help him in managing finance?

This article is devised to guide you in the process of property investment in four easy steps. First of all “what is property investment”— When one or more investors purchase units of company or property, it is referred as investment of funds. It enhances economical transactions. Investment property can be in any form such as, commercial property, industrial property or personal property.

One can invest his funds in up-and-coming real estate markets for economic growth.

Once you have successfully invested your funds you would be looking forward to earn excellent return of investment every time from the occupying property. The return of investment obtained by you mainly depends on whether the cost of operating the property is raised or reduced. Capital growth as a result of investment is revealed from the enhancement or reduction in the property value held by the investor.

As an investor you can attain eternal secure investment, if your property value may enhance when you wants to sell your property. And do remember wealth is generated when you buy and not when you sell. Property appreciation should be looked upon as a bonus and not something that you count on in order to make your money. It will be more advantageous to realize your target in future when you plan to sale your property.

Types of Property Investments

Contrary to belief, there are various options in which to hold property. The extent and type of property investment, one wishes to have is largely determined by the level of personal involvement during the life span of the investment, as well as the reason for the investment. Owning property for the purposes of renting to third parties may require substantial personal involvement as apposed to investing in a holiday home. For the average person in South Africa, property investment means obtaining a physical shelter for their families. Some investors may be interested in property due to its capital growth component as well as its ability to generate attractive yields and returns over time. For others it may be to pursue non financial objectives, such as being able to control a tangible asset. Thus before one decides to invest in property one needs to clearly define the reasons behind the investment. Furthermore, from an investment perspective considerations of ownership tax and management issues are of vital importance. This decision needs to be considered carefully as shifting from one type of ownership to the next may be very costly. The property conveyancing process is a lengthy process which one would not like to encounter more frequent than necessary. In this newsletter we discuss the most prominent ways in which investors can hold property in South Africa

Freehold Ownership:
This is by far the most common form of ownership in South Africa. It implies the owner holds direct title over the property. Ownership would be registered in the deeds office in the name of the owner. Freehold property may be owned by both companies and individuals alike. The advantage of this type of ownership is that the owner has maximum control over his/her investment and may dispose of the property as they wish. Ownership in this form also means the property may be used as security to obtain loans and finances.

Leasehold:
Leasehold, also referred to as renting property does not give ownership to the tenant, however throughout the duration of the lease or rental agreement, the lessee (person who pays rent for the property) will enjoy virtually the same benefit as in the case of freehold above. It allows them to use and occupy the property for the duration of the agreement. The tenant pays over a monthly agreed rental to the landlord (Lessor) which entitles them to stay in the property. There are various types of lease agreements which include short term rentals, long term rentals or even rentals structured with the option to buy the property. Often the Landlord will have a very important right called a “tacit hypothec” included in the rental agreement, which entitles him to take possession of movable goods in the rented premises should the tenant or lessee not be able to pay their rent timelessly. Rental agreements are good options to consider for individuals who may not qualify for mortgage bonds as well as those who do not wish to settle permanently at a particular residence. Money paid out is money lost, thus this may not be a long term profitable investment vehicle.

Sectional Title
Under Sectional Title, there are several owners owning different sections of property. An example would be owners of townhouses and clusters all built on the same portion of land, albeit in various sections. Each owner has exclusive ownership of his own section as well as shared ownership in the communal property such as the swimming pool, clubhouse and staircases. Sectional Title in South Africa is regulated through the Sectional Titles Acts No 95 of 1986. The Act requires that a Body Corporate be created to govern the interest of the various owners. The Body Corporate collect levies, pays rates and taxes, insurance and maintenance expenses.

Syndication
This refers to the grouping together of individuals to pool finances in order to invest in property. Syndication provides the small investor with an opportunity to invest in a specific property which would otherwise not have been possible considering the size of the total capital outlay.

Property Companies:
Property companies are similar to the above however more formalized in the form of a company specifically established for the purpose of owning property. Under this type of ownership, a company is established in terms of the Company Act 61 of 1973. These are largely institutions and individuals who form these companies and use them as intermediary vehicles to invest in property. For the investor, a property company offers the advantage of it being a separate legal entity which has distinct liability from its shareholders. Property companies tend to be large entities that are mostly listed on the Stock Exchange.

Share block Companies
A share block company is similar to the above, however it is governed by the Share block Control Act 59 of 1980. These are specifically formed companies with shareholders each owning a share in the company. Income is taxed in the hands of each individual shareholder, thus making it a convenient vehicle for investors who wish to invest in property, allowing each to have their own tax profile. Owning a share in the property entitles to use and occupy the share of property they own. The rights are stipulated in the memorandum and articles of the share block company. A variant of this form of ownership would be Fractional Title, normally associated with owning a fraction of a holiday home. This form of ownership is also governed by the Share block Act alongside the Sectional Title Act. The difference is that Fractional Title has a management company setting up a defined roster for the scheduled periods of usage throughout the year, whilst usage is informally discussed with shareholders of a share block company.

Timesharing
Unlike the above discussed forms of ownership, owning timeshare is much like Fractional ownership, however it only entitles the owner to usage for a week or more of a particular unit. This is applied primarily to holiday accommodation. Timeshare in South Africa is governed by the Timesharing Contract Act, Act 75 of 1983. Beware of falling for the “Timeshare trap”. Owning timeshare does not equate to holding property, it merely entitles the holder to usage rights for a specific week/s during the year. Furthermore Timeshare in South Africa does not have a good reputation and thus sales agents will often use aggressive selling tactics to lock people into buying timeshares. This is particularly evident along the Durban coastal beaches and holiday resorts such as Sun City. Timeshare is often associated with accommodation establishments which are of lower quality. Exchanging weeks across resorts is also often difficult since it is subject to availability at the particular resort. It will also be very difficult to get rid of the purchased timeshare depending on the weeks during the year purchased, in the meantime levies will still have to be serviced.

Listed Property Investments
There are various ways in which one can invest in property indirectly without having to physically hold the property. This includes Property Unit Trusts, Property Loan Trusts, Investment Trusts and Collective Investment Schemes. Listed property investments are listed on the Johannesburg Stock Exchange and traded similar to equity stocks. As this topic is voluminous, it will be discussed further in future newsletters. It is however important to note that one can invest in property stocks listed on the stock exchange thus capitalizing on trading movements.