Many believe that 2013 is a good year for real estate investing. Some experts even thinks that the improvement for this lucrative field will spill over the next years. This promising forecast provides investors with the needed encouragement to continue investing in this industry – especially in rental properties. If you are interested to be a rental real estate inventor, you may want to consider the following tips below before you solidify our rental investment.
First, you need to look for a good location. In investing real estate, location plays a big role. To have an appreciating land, search for a property that is within a community with development plans. As the local government implements these developments, the whole value of the area appreciates – including your own property. That takes research and a proper analysis of the neighborhood.
Second, chose property that is almost near to your home so you can check the premises anytime you want. In addition, you can also monitor easily how your home is being treated by your tenant.
Lastly, before you invest on home. Make sure that you have a stable income aside from the rental income you will get. There may be cases wherein he home is not occupied by a tenant so that means you will not get any income there. Consider home investing as a secondary source of your income only, unless you have several businesses.
By a point and a half meaning developments are being done, just at a very small scale that is enough good news for most people in the business. Any news it seems, as long as it is good is welcomed with open arms but experts warn of over optimism regarding such news for it has happened last month when surprisingly, the new home sale index also got a slight rise in points but swiftly fell down again. The recession is indeed taking its toll and people are not easily swayed by news of the sort anymore for it leads to false hope that it may be the end of the crisis. Read the rest of this entry »
by: Christine Zafra
Being knowledgeable about real estate terms can actually help you when choosing a house or when the time comes that you have to close a deal. There are a lot of fraud agents and buyers/sellers out there. As a buyer, you have to be sure that you know the price range of the houses within the area as you wouldnâ€™t want to be ripped-off of your hard earned money. For the sellers, do a little background check. There a lot of fence sitting buyers there and most of them are hoax (they just want to ruin your life, thatâ€™s all).
Real property like land, buildings and land improvements that are utilized by businesses to produce income are considered real estate. Real property in contrast to personal property is held for the purpose of investments. Typically, the increasing value of real estate exceeds the inflation rate but real estate uses an inflation hedge which differs in each locality.
In real estate, there is also leverage because of the high percentage of the investment which can be made with the use of debt funds with down payments usually less than 25 percent. Real estate also provides for capital appreciation and depreciation however, with a large capital investment.
The hyped reasons for the massive slow down in the real estate market are the credit crunch and bursting of the real estate balloon. There is one other major problem that nobody talks about.
At its core, the real estate market is no different from any other product based market. While we think of homes as part of our lives, they are actually just product units in the eyes of the law. As with any product, the issue of supply and demand has a lot to do with prices.
Let’s consider a simple example. Video games are immensely popular. The Wii is so popular that they can’t keep them on the shelves. Simply put, there is a limited supply and a massive demand. This has resulted in stores selling the gaming system for as much as twice the suggest list price.
The real estate market currently has the exact opposite problem. Whereas supply was limited in the early years of this decade, the game has changed. Recent analysis of the industry has revealed a glut of new homes on the market. There are approximately 450,000 new homes unsold. This equates to roughly a 10 month supply of homes meaning that if no homes were built for the next 10 months, there would still be homes to be sold.
There are many factors that are keeping the real estate market in the dull drums. While financing is always an issue to consider, the sheer glut of homes available is a huge problem. It means that supply is far outweighing demand, which is resulting in the lowering of prices for homes.
When watching the real estate market, most people look of indicators regarding when things will turn around. Media gurus discuss interest rates, the credit crunch, foreclosure rates and so on. In truth, none of these are indicators of a turn around. The crystal ball is simply the supply and demand. Watch the home inventory figures. When you see them starting to drop, you should take it as a sign the market is about to turn around.
Colombian traditions, like its climate, fluctuate by altitude. The quintessence of the country dwells in the peaks; in the alpine towns of BogotÃ¡, MedellÃn and Cali, and the minor metropolis of the Zona Cafetera. So, lots to see and enjoy in Colombia, right? Yes! But whilst taking pleasure in the beauty of Columbian cities, there may arise a need to access your company mails for some quick decision-making. And thatâ€™s is when you can host exchange on your mobile phones to quickly get access to your mails whenever and wherever you want. If you carry a hosted Blackberry phone that too will allow you to check mails easily.
By syncing your wireless device with Exchange Server 2007, getting access to your Outlook inbox on wireless phone becomes an easy task. Nevertheless, ahead of configuring your phone with Dedicated Exchange Server, you should check your phoneâ€™s compatibility with Hosted Microsoft Exchange. Moreover, if you are a foreigner to Colombia, you should make it a point to ensure with your own mobile phone service providers about their roaming arrangements with the wireless carriers in Colombia. Furthermore, the Spanish speaking populace of Colombia can make use of Exchange Server 2007 in their own home language as it is offered in numerous lingo packs.
Similar to Exchange Server, you can also access your companyâ€™s SharePoint Site easily from any part of the globe. This facility will help you to view and review the content, updates posted by the company employees. You can also make changes in the content on SharePoint Server 2010 even when you are away from your office. With Apps4Rent, you will find the best SharePoint price.
Getting a survey before you close on any real estate is very important.
Some people actually buy real estate without having a survey done. It is not a requirement from the financial institute,
so does that mean you don’t need one?
By getting a survey you will not only get a blueprint of your property you will get your property lines marked out for you.
Most importantly, you will find out if there are any infringements on your property like a neighbors fence, a neighbors tree, a neighbors driveway, etc.
A survey can tell you many things.
It will disclose any easements you might have on your property.
Easements can be a fire lane or an access road for the local Power Company. These easements cannot be blocked, built on in anyway to prevent the lanes from being accessed. You could have a city or county easement on your road front property anywhere from two to ten feet into your yard you might not know of. This gives the city or county use of this property for power lines, phone line and even city water drainage. Although you might have to mow this lawn the city has the rights to its use.
A survey will show you if your property has a right of way
for the property behind your property. A right of way is incorporated onto your property and must be available to the property owner behind you to get to and from their property.
If the survey conveys a property infringement you can delay the
purchase until the infringement is moved or back out of the deal
if necessary. Easements will not be removed.
A survey can and will give you peace of mind and knowledge about
your property preventing any unexpected surprises later.
Knowledge saves you money and anxiety.
You decide if you should buy real estate without one!
Image Source: expandmywealth.com
If you want to invest in real estate rental properties, do the following before you actually buy anything:
- Do the math to determine the property’s actual potential income. Review the tenants’ lease agreements and check the corresponding security deposits made as initially reported to you. Have an idea whether your tenants make prompt payments or if credit and criminal background checks were actually done on each and everyone of them.
Walk through every unit of the property to get to know the current tenants and know the real condition of the property inside. Obtain clues as to the lifestyle of your tenants. Check also for “ghost tenants”. Some sellers pad their roster of renters to boost occupancy rate. Inspect the units for fire, water or resident damage/s and pest problems.
- Find out if the property was constructed according to government specifications. Nothing is more irritating then always having government people bugging you about your property’s compliance to their standards.
Know the existing service contracts of the present owner and check if they can still be improved, should the property become yours. This includes heating, cooling, air conditioning, pool service, advertising, parking, cable and alarm contracts.
- Check all the exterior aspects of the property especially the roof, electrical, sprinkler and plumbing systems, condition of the exterior paint, driveways, parking lots. Estimate more or less when they may need repair or replacement.
There are many homeowners who have been faced by the same predicament though few would admit it, having found a new home, they are overwhelmed by joy they forgot to measure the larger pieces of furniture. They end up either getting a storage rental unit to store the stuff that won’t fit or settle to sell them outright to anybody who wants it to buy new ones that would fit the spaces in their new apartment. These are just some of the frustrating events that if it was thought of ahead of time, would’ve saved you and your landlord a lot of trouble. You may even end up paying your new landlord due to damage you have inflicted onto the property as you moved into your unit. Before going on a final inspection of the unit you aim to rent, take a measuring tape and jot down the dimensions of your furniture, especially ones that cannot be taken apart. Read the rest of this entry »
No one will ever answer with certainty all of the questions on the California Real Estate Broker’s Exam. That means that everyone, sooner or later, will have to guess at a few answers. So here are some strategies to help you come up with the best guess.
First, if there are two choices that mean essentially the same thing, and the correct answer does not appear to be “all of the above,” eliminate those two choices. You can’t choose between them because they refer to the same thing. For example, if answer choice “A” offers “purchase contract,” and answer choice “C” offers “deposit receipt,” you can eliminate “A” and “C.” The answer can’t be either one of them.
In many situations, when you look at a question where you do not know the correct answer, just because of your general knowledge, you should be able to eliminate two of the choices. Two of the choices will not seem plausible or won’t make sense. That leaves your guess between two, which raises the odds of getting it right. Before choosing, you should read the premise of the question one more time. That reading might tip the scale in the direction of one or another.
Some other tips worth paying attention to are these. “B” and “C” are probably the most commonly used correct answer choices. “All of the above” is not usually correct on the Broker’s Exam. It is on the salesperson’s exam, but they want you to notice the nuances and see the distinctions on the Broker’s Exam. “None of the above” is not usually the correct answer choice. It is used as a default answer. Think about it like this. You are writing test questions, and you come up with a concept and you have the right answer in mind. You come up with two incorrect answer choices that are plausible (they must be plausible, right?), and you’re trying to think of a third, but it’s tough. You just can’t think of one. Ah, “None of the Above” will do. You are now finished and can move onto the next question.
“Not enough information given,” is tempting-it appeals to our egos-but I have never seen it to be correct. And if you see an answer choice that offers two of the other answer choices as the answer, like “D: A and B,” that may have a good shot at being correct, just because it’s a really elaborate ruse, and chances are the test writer didn’t go that far to trick you.
Now all of these tips are based on observations over many years. They are not airtight, but they are a valid trend. Always answer what you know for sure-then apply this information. And happy testing!