In a hot market, you pick up the properties that become available, even if they're not perfect, because you know they will sell later. But when the market cools off, it's not just possible but necessary to pay attention to details, especially location. For commercial real estate in the current residential climate, location is not just a consideration but a critical component of your purchasing decision, and just the right property is a real investment opportunity.
Look at the current cycle. Gas prices are high and rising so people don't want to drive. Real estate values no longer allow people to use homes as their personal piggy banks. Foreclosures and upside-down mortgages are causing outright panic in some areas, and property values are tanking in these places because they should - they've been sucked dry of equity. So the smart real estate investor starts looking very carefully at location before purchasing commercial real estate. It should be cheap. It should be close to homes, so the option of walking is available to potential customers. It should provide potential for growth, perhaps space for businesses failing in their current far-off locations to move in and take advantage of the rich pool of customers in the area. But how do you spot these superior areas before everyone else does? Look for these key markers while scouting commercial locations: * Transportation: places that provide dense consumers with expendable income, or places that are served efficiently by public transit, will be growing. Look also at commercial places midway between heavily trafficked work locations and neighborhood centers - a shopping mall that is convenient to stop at on the way home from work is going to draw consumers looking to cut back on gas consumption by eliminating unnecessary trips. * Excellent schools: If you see the performance of a school in one of your targeted areas improving, sit up and pay close attention. School excellence can add as much as 11% to area home values, creating a positive residential market that will spill over to commercial locations. * Watch what's going on in your local government. Do you see certain locations being revitalized? Is a street being transformed into a pedestrian draw, or is a new park being built? These hot spots always stimulate higher property values, which stimulates the nearby economy, and is great for commercial business. * Look through building permits for renovation signs - housing add-ons, conversions of homes to apartments and vice versa. Drive through areas that seem to have a lot of this going on. If you see lot of renovation in an area, that's a sign that housing values are improving and the area may be ripe for some new commercial development as well. * Look in areas where the complaint is that housing prices are too high. When you find areas with people getting priced out of the market, it is sometimes a sign that the location is becoming too desirable, and new hot spots are going to crop up on the fringes of it. Treat a commercial property here with caution; it may also be a localized real estate bubble. Look for other signs that the location is going up before you target your hot new property. What Should You Pay? In an ordinary market, price points for commercial properties are a critical part of your purchasing decision. In a slow market, prices aren't nearly as important as location. That's because location has permanent value, whether the market is hot or cold. In a slow market, great locations often retain more value than marginal locations; the marginal locations are still not necessarily good deals. Think about it this way: when prices for an item are up and there's a limited supply of that item - say, lobsters - then the overall price for all lobsters rises and stays high. When the supply is higher and the demand lower, the overall price drops - just as it has with houses. Except - the royal blue lobster of the Audresselles is still just as expensive, even in a slow market. Why? Because it is unique, especially tasty, and rare even when similar items are plentiful. The best commercial locations will always remain more expensive because they are worth it. The customer base is there, the transportation is there, and the stores will migrate there because it is a recession-proof location. When identifying these locations, focus especially on areas with attractions for young, well-employed people who are ready to settle down with families: good schools, attractive neighborhoods, parks, easy access to work centers, and a growing job base. Urban universities with a high proportion of nontraditional students often attract these conditions, as do well-done urban renewal areas. Learn to scout out signs of new areas that are rising in the market: the new construction, rising housing prices, young professionals jogging through the renovated park, well-dressed children playing in parks as well. Pay less attention to buildings and specific location and more attention to people and how they're starting to use spaces. Listen to the buzz about what new areas are hot, and which old areas, once hot, are just too expensive now (new hot spots will start on the fringes of these). Most of all, keep an open mind. The next hot commercial market may come as a complete surprise. Property News, Bisnis Properti, Properti, Joker123, Slot Game, Game Slot, Sbobet88, Agen Sbobet, Slot Online.
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The last couple of years, Brazil has finally proven to the world the growth potential the country has. While the rest of the world is still in recession, the Brazilian economy is growing and several leading economists believe that Brazil will be the 5th richest country in the world by year 2020. To no surprise, the positive media attention Brazil has received lately has also led to an increasing number of foreign property investors starting to look for real estate in Brazil.
This article aims to highlight the most common mistakes foreigners do when they consider buying a property in Brazil. Here are our top 3 tips for making a solid Brazil property investment in 2010: It is not all about the price Many foreign investors look for the cheapest possible Brazilian property they can find. For some reason many foreigners still think that Brazil is a banana republic. While this was maybe true 15 years ago, Brazil today is a different breed altogether. Like in the rest of the world, the old and tested rule of "location, location, location" is valid when buying Brazilian real estate as well. Properties in Brazil that enjoy a good location will always be in high demand for rental and resale purposes. Trying to find the cheapest possible property in Brazil is a very big mistake, as cheap properties never enjoy from a highly sought after location. For investment purposes, it is far better to buy a property in a good area. That way the property will generate healthy rental returns and there will always be clients interested in buying the property from you in the future. Don't focus solely on beachfront Another big mistake many foreigners do when they consider buying a property in Brazil, is that they have a very fixed idea that the property has to be beachfront. While a beachfront property can be an excellent option, it is far more important to first select the right area. Even though Brazil has an approx. 7500 km long coastline, it does not mean that every inch of the coastline has investment potential. The already established locations in Brazil usually have very few beachfront properties for sale, and the few beachfront properties for sale are usually too expensive to offer good investment potential. Usually it is far better to be a bit away from the beach in a good and popular area, than being beachfront in a deserted area. Few people will want to rent a property in a remote area and it will be very difficult to resell the property to a future client, as the area is not desired. Forget about Payment terms While it is true that good payment terms can provide extra leverage on your investment, many investors put too much emphasis on payment terms. Remember that you will only make profit on a Brazil investment property if a future client is willing to buy the property from you at a higher price than you paid for it. If the property is not in the right location or the build qualities are not up to scratch, it simply does not matter what payment terms a property offers. Conclusion: Property investing is all about paying a price that is lower than the future selling price will be. The property must offer the end user with living experiences he is prepared to pay for. This is basically achieved in two ways: 1. The location must be right for the client, and 2. The property itself must offer the qualities and appeal the client wants from a property. Few final end user clients are prepared to pay any price for a property that is in the wrong location. It does not matter if a property sells for a very cheap price if the location is not attractive enough to appeal to future prospective end user clients. Remember this: The only way to make a profit from a property is to sell the property to a future client for a higher price than you paid for the property. This basic rule applies as well for properties in Brazil. Property News, Bisnis Properti, Properti, Joker123, Slot Game, Game Slot, Sbobet88, Agen Sbobet, Slot Online. All home owners and property managers should have a property maintenance checklist to help them keep their home or other premises in top condition.
1. The roof. Inspect this for missing tiles or slates after every storm and in any event at least twice a year for weather or insect damage. 2. The guttering. Often neglected, this should be regularly inspected, including in early winter for leaf deposits, to ensure there is no blockage that can put a strain on the metalwork or cause water to cascade down onto an outside wall. 3. Outside walls. Check these twice a year for signs of rising or penetrating damp. In particular check the damp proof course near the ground level and that there is nothing "bridging" it, e.g. a pile of earth stacked against the wall. 4. Inside walls and ceilings. Check every month for signs of penetrating or rising damp, or condensation problems. Review the state of the paintwork on walls and woodwork. 5. The loft, or attic. Check the woodwork for signs of woodworm or rot, and the inside of the roof for signs of water penetration. If the water tank is in there check its insulation and pipe work. Lofts, especially if insulated, can become freezing cold in winter. 6. Security. This needs to be inspected every so often to ensure that all window and door locks work smoothly. Don't leave any windows open when the property is empty. Don't leave any ladders outside unsecured. If leaving the property empty for any length of time, arrange for a neighbour to visit regularly or have some of the lights come on and off at odd times automatically. 7. Plumbing and heating. This is another area usually taken for granted. Do regular checks during very cold weather. Examine any pipe insulation at the start of each winter and renew if necessary. Boilers should be serviced at least once a year. Check for dripping taps every month or so and renew washers if necessary. Toilets should be cleaned at least once a week. Keep the enamel stain-free by pouring a can of cola drink down the toilet every so often and leaving overnight. 8. Ventilation and insulation. Check all windows regularly to ensure any fanlights open as required. Old wood-framed sash windows particularly can be inclined to stick and remain permanently shut. Ensure sufficient ventilation particularly in kitchen and bathroom areas where warm, moist air has to be regularly removed to prevent condensation. Check any gas flues for blockages. 9. Electrical wiring. This is normally concealed beneath the plaster work and so normally needs little attention. Any exposed wiring should be seen to immediately. Watch for DIY extension sockets that leave wiring trailing over the floor - this should be covered up safely. 10. Outdoors. This should be checked at least once every few months, including at the end of autumn when all the leaves have fallen. Grass should be cut regularly during the summer, and borders trimmed. Leaves and other natural debris should be removed. Oil deposits on the driveway can be removed by putting some sand on it and sweeping it away later. It's surprising how just a little attention now and then can make your garden look well cared for, and increase the salability of your house, should you be looking to sell. Keeping a "sinking fund" for unexpected property expenses may not be easy for most of us, but if you can do it then it can be a big help when the odd large expense does arise. This applies especially to business property maintenance. If you think there may be a problem looming with anything on your property maintenance checklist, taking a photograph of it every week or so in order to track any changes or developments can be very useful. Property News, Bisnis Properti, Properti, Joker123, Slot Game, Game Slot, Sbobet88, Agen Sbobet, Slot Online. A "CU" is what is known as a Certificate of Use in real estate investing. These property reviews are licensed engineers' inspections of structures under certain circumstances. In a growing number of cities and counties, these inspections have to be completed before a title transfer. Cities and counties have started to require them because of dramatic changes in their local housing markets because of foreclosures. These reports are necessarily not the same as Re-occupancy (RO) or Re-certification (RC) certificate required by some cities.
The intent of having a certified engineer's inspection report was started to check that foreclosed properties were not a safety or health hazard for the buyers. In many cases, bank-owned properties (REOs) were allowed to go without maintenance for months or even years. The result was many structures started to rapidly decay and become eyesores and health hazards for the community. Pro-active city officials decided to make it a requirement that these properties had to be inspected before they could be sold. The actual result of these certified inspections was required to be recorded in the public record for anyone to see who was thinking about buying the property. One issue was that these certifications also listed the expected repair costs which could vary greatly from one inspector to another. As an investor looking at a CU for a specific property, there can be an opportunity to reassess the repair estimates published in the report. Especially if the investor is a contractor or handyman, he may be able to substantially reduce the actual repair costs. The original estimate by the engineer, if high, might cause the average investor to pass on buying the property. The other reason cities or counties started the CU requirements was to generate revenue for the municipality. They did this in a couple of ways; first the report has to be recorded in the public record which has a fee to do this. Secondly, the professional engineer is a community member and a job is generated locally. Most importantly however, is the fact that a copy of the CU is sent to the building department and code enforcement to determine if permits are needed for work already completed, or for work that has to be done to make the property livable. Building permits and inspections are a key source of income for municipalities and with the CU inspection the municipality can look inside a property that couldn't have been done previously without a court order. Any illegal rehabs suddenly surface and are immediately "tagged" by code officers for enforcement. The unsuspecting buyer will be taking over the problems left behind by a former investor or bank that just wanted to dump the property. The requirement to get a CU is usually focused on already foreclosed (REO) properties that are going to be sold. It is the law that the selling lender gets a CU before the sale and has the report recorded in the public record. In many cases, the reports are almost certain to have most buyers back off offer substantially lower their offers. The banks have overcome this "disclosure" problem by having a prospective buyer waive his legal right to receiving a CU before the closing. The penalties for non-compliance for getting the CU are virtually non-existent for the banks, but ultimately the buyer has to comply with the CU inspection report after he buys the property. The cities track title changes on REOs and come after the new owner within a few months of his buying the property. In summary, if you are looking to buy a foreclosed property, check with the closing agent and the municipality where the property is located to determine if there is a need for either a re-occupancy or re-certification certificate, or possibly a Certificate of Use (CU). The municipality tracks the need for a CU by the summons or lis pendens that the foreclosing lender has issued by the court. Even if the property results in a short sale, the CU statute may come into play. A little investigation before the closing could save you tons of aggravation later - and possibly a huge loss of money. Property News, Bisnis Properti, Properti, Joker123, Slot Game, Game Slot, Sbobet88, Agen Sbobet, Slot Online. As the owner of investment property, it is always a good idea to regularly monitor the performance of your portfolio taking into account a range of different situations that could occur. Stress testing is more often used in the banking sector - for example to examine how secure a financial instrument or model can be in range of scenarios (and using specific algorithms to deduce what the return would be within such circumstances).
In the buy to let sector, similar principles can be applied using the accounts that you would already be maintaining as well as tools available on the web. This is something that even the healthiest of portfolios needs to go through every now and then. 5 Stages of Stress Testing Your Property Portfolio: 1) Data Collection: mortgage payments; rental receipts; voids; maintenance / repair costs; tradesmen / labour costs; insurance; bank charges; gas inspection costs; transport / fuel costs; EPC charges; interest payments on other loans related to your property business; legal costs; book-keeping and other auxiliary charges (you may want to also add your property buying costs, if any). You should ensure that the information you use is accurate and up-to-date so that you are getting a clear picture. 2) Net Operating Income: this is essentially what is left after rent and all associated costs are paid. 3) Future Cash Flow Testing: whilst Bank of England interest rates stood at historically low levels at the end of the first decade of the 2000s, most people are aware that they can change at a very quick pace - particularly if inflationary pressures mount. For this reason, it is important to examine the cash flow from your properties through various rate increase increments remembering that long term averages are between 5-6% (look at historic interest rate figures using the link we have provided below). It is through this analysis that you can often weed out any issues with your properties that may be getting overlooked (and potentially save some money). For example, are you spending too much on maintenance, repairs, insurance etc.? Could you keep some of the cash-flow by managing the properties yourself? Could you potentially turn any of your properties into a HMO (and benefit from an improved yield)? Would acquiring more property make sense (to balance out the negative cash flow you may be achieving)? 4) Releasing Money from Your Portfolio: for those who had bought property before (and during) the onset of the credit crunch, keep an eye on the various house price indices and reports (such as 'Hometrack') to see how the value of your property is moving. Look at a number of different growth scenarios to determine when and how the equity level in your property will increase in order to see, approximately, when you will able to release cash (either by selling or re-mortgaging). Note that some areas (such as London) are often less affected than others and can go up in value quicker - often due to a short supply. Start with a hypothetically pessimistic view of negative growth to see how you will be able to handle every situation (good and bad). You should also bear in mind the fact that lenders, particularly during a downturn, tend to take a particularly stringent view with regards to valuations - it is therefore better to take a conservative approach (for example using sales and not asking prices). 5) Major Costs: lastly, and often forgotten about, is to test worse case 'real life' situations against the performance of your portfolio (refurbishments / larger repairs, boiler replacements, bad tenants etc and the ongoing costs of eviction). These costs do mount, particularly after you have owned your portfolio for some time. With points 3-5 above, the best form of undertaking a stress test is to ensure that you will be able to sustain the portfolio if both interest rates increased; the value of your properties continued to decrease and refurbishment costs are accounted for (whilst always looking at your net operating income). Property News, Bisnis Properti, Properti. Joker123, Slot Game, Game Slot, Sbobet88, Agen Sbobet, Slot Online. In the past, when many people thought of Miami Beach, they thought of a retirement community that was filled with senior citizens and that there was little for younger people to do that was fun and exciting. Yes, there are still a number of retirement communities in the area, but this is also a place where young and old alike come to stay and play. Millions of tourists from all over the world visit Miami Beach every year and thousands of people decide to make the area home. Miami Beach is a place where there is something for everyone, no matter what your age. Slot Game Online.
Miami Beach is a city in Miami-Dade County in Florida and has been an incorporated city since 1915. It is a city that is rich in history, with a population of approximately 90,000. Miami Beach is so well known that it has been featured in television programs and movies too numerous to mention and sees millions of visitors from around the world every year. There are so many things to see and do in Miami that no one could ever get bored, whether they like outdoor activities, cultural events, festivals, visiting nightclubs, shopping, fine dining and a whole lot more. And of course, let's not forget the beautiful sandy beach that gives the area its name. This is a place of beauty and a place where you can have a really great time. Come for a visit and you may find yourself searching for property, to make Miami Beach your permanent home. Joker123. Miami Beach Attractions Miami Beach is loaded with attractions that are fun for everyone, no matter how old or how young you are. Obviously there is the beach, but there are also many beautiful parks where you can stroll along the trails and relax in the fresh air. Some of the parks to visit here include Flamingo Park, Allison Island, La Gorce Island, Bayshore, Collins Park and many more. There are many different tours you can take of the area, including walking tours and guided tours, many of which are free of charge, others only requiring a small donation or a charge for parking. Slot Game. You can take part in all kinds of water sports in Miami Beach, from swimming to boating to extreme sports like parasailing. There are all kinds of other outdoor sporting activities going on all the time, and if you live in the area, you will probably end up playing at least one game of beach volleyball. Game Slot. You will also find dozens and dozens of luxury boutiques and high-end department stores, where you will find the latest fashions from the world's top designers. And when you are ready to take a break from shopping, Miami Beach has all kinds of restaurants, from fine dining to terrific greasy spoons. Sbobet88. Real Estate in Miami Beach Whether you are looking for an apartment or condominium where you are centrally located right in the middle of Miami Beach or you want to have a home in a more residential area, you will find plenty of different types of properties available for rent or sale here. There are many neighborhoods in Miami Beach that you may be interested in, including Bayshore, Biscayne Point, Flamingo, La Gorce, Nautilus, North Shore, Normandy Isles City Center and more. If you are looking for a home where you can wake up and the first thing you see is a view of the ocean. Many of the communities here are gated and have full time security services, meaning you and your family will always feel safe and secure. Agen Sbobet. All of the neighborhoods listed above, and many more, have properties for rent and for sale that are ideal for single and family living, where you can feel safe letting your children walk to the bus stop for school by themselves. This is an area for seniors, singles and families, and there are accommodations for all. If you are thinking about moving to Florida, you need to seriously consider Miami Beach. The accommodations are varied and plentiful and it is an area that has something for everyone. Slot Online. Read More Article About Property News, Bisnis Properti, Properti. This article is the seventh in a series of seventeen articles that will give readers insights into how real estate investors are able to do transactions with little or no money, no credit and little or no risk. In this part of the series we will discuss the technique that is called a Lease-Option Contract. Slot Game Online.
The lease-option contract is actually two contracts in one or two separate contracts where one is a lease and the other is an option to purchase the property. Terms of the option contract should at least include the length of time to exercise the option, the exercise or "strike" price, any extensions available to the buyer, and the amount or cost of the non-refundable option consideration (this is not a deposit). The lease part of the lease-option contract is simply a locally applicable lease that has embedded language that if the terms of the lease are not adhered to, the tenant (Optionee) forfeits his rights under the option contracts. The owner (Optionor) can evict the tenant under the terms of the lease. Slot Game Online. The benefit to an investor could be that he leases a property to live in, as he has to have somewhere to live, and either exercises the option a year later, resells the property to an end-buyer using one of the closing techniques in this series of articles, or he walks away having rented a property for a year (terms can vary considerably and multiple years may be available from the Optionor. Slot Game Online. The much more powerful method of using lease options is do what is commonly referred to as sandwich or butterfly lease options. In this scenario, an investor gets a property under a lease option contract and re-lease options the property to a perspective end-buyer. The complete transaction looks like: 1. Seller (A) leases and options the property to an investor (B). As an example, the rent could be $800 a month and the non-refundable option consideration should be $100 and a purchase or strike price of $150,000. 2. Investor (B) re-lease options the property to an end-buyer (C) who wants to live in the property for $1,300 a month and with a non-refundable option consideration of $5,000 and a purchase price of $175,000. This is a classic A to B and then B to C transaction, similar to what happens in short sale closings where investors are taking a profit out of the differential spread they made by finding a buyer at a higher price than they paid. The investor has the ability to give the end-buyer a credit of say, $150 each month at closing, if his rent is paid by the first each month and the investor should have the Seller pay for repairs over $2,000 and the end-buyer pay for repairs less than $2,000 so the investor has no property maintenance expenses. Slot Game Online. Only a few options exist when the option comes due in a year: 1. The option and lease can be extended by the Seller and the investor. 2. The option is exercised and the investor will have made a $500 per month profit differential between what he paid the Seller and what he received from the end-buyer or $6,000 annually. In addition, the investor will make $25,000 on the price differential the Seller gets and the end-buyer pays for a total profit of $25,000 + $6,000 = $31,000 on a $100 investment. 3. The end-buyer defaults on the agreement and the investor can't re-lease option or extend the length of the option. In this case the investor would lose his $100 option consideration with the Seller, gain $6,000 on the rent differential and keep the end-buyer's option consideration of $5,000 for a total profit of $5,000 - $100 + $6,000 = $10,900 on an investment of $100. In summary, the Seller should have equity in the property for this transaction or allow a subject to assume their mortgage payments. Some attorneys disagree with me but my experience shows that having a single lease option contract combination is harder to defend in a court action; having two documents, a lease and an option contract is simpler to use to evict an unruly tenant (end-buyer). So in the above example, the investor would get a single contract from the Seller but give the end-buyer a separate lease and option agreement. Some states are regulating the use of lease options and their terms where a homeowner in foreclosure is a party to the transaction. Always seek legal advice before trying lease, lease-option and option contracts on your own. Slot Game Online. Read more about Property News, Bisnis Properti, Properti. Property flipping means taking over any property with a lower price and then selling it back with a higher price. This process is normally a fast transaction with the investor only possessing the particular property for a few months. We have 2 general methods to flip a property. The first method is to get a property and then resell it at a profit without living in the property. The other way is acquiring a property, fixing it and then resells it at a more expensive price. It is important to understand some basic property flipping advices and ways in order to help you in gaining higher profit from it. Let's see some tips on property flipping. The most essential step to learn is how to look for a property which has high possibility to generate high revenue. Slot Game Online.
There are many other reasons for a property in the calculation of its value. Visit some local banks to acquire a list of possible assets that have been foreclosed upon. The prices of these properties are normally much lower than existing market prices. Begin with your objectives in mind, You need to identify what to do after you get a potential prospect with the property that you bought. If you attempt to purchase the property first and then think of what to do with it, you're in a total mess. Do survey on the present market, location of the property and your buyer's needs. Look for the most suitable location to get a property. A property in a site close to institutional areas has the potential for huge value. Studying your existing market is also essential. Slot Game Online. It can be defined as knowing what local investors want and investing in the most suitable properties. It is said that the most profitable property flippers are them who can prepare possible buyers before they even purchase the property. Plan a budget for your target properties. Be on the lookout for sales, foreclosed homes, or condominiums that are still being built. After you determine a property, the next step is acquiring the funds to purchase it. A handy step is to go to your local banks. Banks normally provides short period loans for such business. Slot Game Online. Apply for loan or mortgage to purchase the property and then pay back the loan as soon as possible once you sold it. In this manner you can acquire much higher earnings. Do a number of fixings and then trade it at a higher price. You have to determine how much are your budget for the repairs before you decide on getting the property or you will lose too much money by repairing a totally wrecked structure. Determine the value of upgrading and how much return that you will receive from it. A brilliant idea is to go for a complete inspection. It may cost you some of your funds, but will help you to catch problems that didn't realize before. After you got the property, you need to search for somebody to buy it. A useful idea is to limit a property unless you prepared a potential buyer lined up. This method will cut the period you have to be burdened by the loan or mortgage. Keep in mind that potential buyers can be found anywhere. You should be very consistent as it's not simple. Slot Game Online. Some years you may find 2, 3, or more properties which you can flip. Other months you might not find any so keep implementing your efforts. A suggested way is to utilize the power of the online world. Advertise about the properties on real estate web forums to receive huge clients. This is the saving way to sell. Another idea to get the buyers is to purchase advertisement place in classified listings. Go through the newspaper classifieds. Look in the weekly and daily newspapers for the properties advertisements. You can find some billboards within your local area on people finding properties. Speak to each one of them. You need to know where they are willing to buy the properties and the average price. Another recommended idea is to check online auctions. Slot Game Online. With the growing visits online these auctions pages have become more common. Simply use any search page to find these websites. In property flipping, you will run across problems that you simply didn't expect. It might be an issue which pops up 2 hours before the deal that needs to be solved. This circumstance needs your wisdom in order to overcome the problems. Through property flipping you will be able to profit while learning the ropes in real estate and you don't have to be worry about any threat if you do it the right way. Slot Game Online. Read More About Property News, Bisnis Properti, Properti. |