Archive for the ‘real estate’ Category

Is Real Estate a Good Investment

Noted author and philosopher Mark Twain once advised “Buy land, they’re not making it anymore”. This off handed comment still carries weight over a century after Twain spoke the words. Owning land is perhaps the most basic monetary unit.

Stocks, collectibles, even money itself: none have a guarantee of holding value far into the future. Real estate, however, is timeless. As populations increase, the scarcity of unoccupied lands will greatly decrease.

Investing in land today is not just an investment in your future, but in the future of your entire family. Long after you are gone, your family could hold onto the property, using it for further investments or to live on for themselves. Despite the many great reasons to invest in real estate, there are still a number of different things to consider as you prepare to make the leap into land ownership.

The first thing to consider is what type of real estate is the best investment for your money. For instance, condos can be a great investment and even greater place to live. However, unlike home ownership, your control over the land itself is limited into the future.

Furthermore, you will need to decide at some point whether you would prefer to invest in commercial real estate, or residential. Commercial real estate can be a great investment, but you will have to be prepared to modify and redevelop the land to best suit the rapidly changing business world.

The next thing to consider is cost, or perhaps more exactly, timing. As the economy grows and shrinks so to do real estate prices. The best time to invest might be when the economy is at its weakest, as prices tend to be lower and you can get more value for your dollar.

However, you may have to wait a significant amount of time for the economy to recover in order to recoup your investment. If you plan on living in the property that you invest in, timing may not be as big of a factor. So long as you can make payments and keep the property in good shape, you have all of the time in the world to wait out a shaky economy.

As you consider these factors, your next step should be to consult a trained local expert. They will be able to go over your existing assets and determine a reasonable price range for your investment.

Once a price is set, they will show you a number of different properties that, in their expert opinion, may have a high resale value in the future, depending upon how long you want to keep the property. When it comes time for you to finally invest, look to land for the safest bet!

Real Estate Property Investment Series

Despite its five thousand year history, US allied Bahrain is an ‘emerging’ nation and has been in a significant state of transition since the current king and former amir of Bahrain Sheikh Hamad bin Isa Al Khalifa came to power in 1999 and it’s critical that any investor examining the property market prospects in Bahrain for profit potential in 2007 and beyond understands the nature of the development of the country before they consider committing to it.

While the current period of transition now means that Bahrain has become one of the most prosperous and attractive nations in the Gulf region in which to live, work, invest and prosper, it’s rapidly expanding economy and significant political changes have created an underlying feeling of destabilisation among certain factions of the local population.

While generally speaking Bahrain’s property market prospects for 2007 are very positive indeed and this article covers the positive prospects for the market, it also details the underlying problems that could undermine the short term attractiveness of the country’s real estate sector so that investors can make as informed a decision as possible about market entry and investment commitment.

Since the current king of Bahrain came to power his nation has made incredible progress…on the political front Bahrain is now allied with the likes of the USA and UK, it has a free trade agreement in place with America, it has open elections and in 2006 the first ever female parliamentarian in any Arab Gulf country was elected into office in Bahrain. On the economic front the king of Bahrain has been key to the transition of his nation away from its economic dependence on oil and going forward into 2007 and beyond, Bahrain has a strong economy with very positive annual GDP growth rates.

All of these factors have indirectly started a property market revolution which is largely fuelled by international citizens moving in greater numbers to Bahrain to live and work. The reason for this is that Bahrain is located in an important strategic position in the Gulf and has taken it upon itself to be the nation offering least resistance to multinational businesses requiring a physical presence in the region. As a result of attractive legislation, transparent business practices and a low/no tax policy, Bahrain has succeeded in attracting large numbers of international and multinational corporations to its shores who each require a base in the Gulf region and who each recruit large numbers of international expatriates who are now moving to live in Bahrain.

This resultant strong inward migration of professional expatriates demanding housing saw Bahrain being one of the first of the Gulf nations to grant freehold real estate ownership rights to foreigners. This has meant that now international citizens and investors are buying up swathes of real estate as it comes to the market and forcing up property prices out of reach of the local population. In addition to this situation, supply of property especially in the main commercial areas is in limited supply which has also resulted in a frenzied rental market too which further excludes many local citizens – clearly all of this activity has created a feeling of frustration among local Bahraini citizens and it is this frustration that is causing an undercurrent of disaffection.

There is another factor affecting the housing market in Bahrain as well – as Bahrain is joined by a 25 km causeway to neighbouring Saudi Arabia and yet is a far more liberalised and tolerant country, Westerners working in Saudi are also choosing to live in Bahrain and to commute across the King Fahd Causeway rather than live directly in Saudi Arabia. On the one hand all of these factors mean that there is strong and increasing demand for commercial and residential property for sale and rent in Bahrain among an increasingly affluent international community – this means that in 2007 and beyond there will be a perfect environment in Bahrain for property investors to exploit.

On the other hand however there is mounting tension among those local people who cannot continue to afford the rising real estate prices. While this tension goes largely ignored some are starting to say that Bahrain has moved too fast in developing new areas of its economy and in allowing multinational companies to set up operations in the country. These multinationals have been accused of largely employing expatriate staff in a country where, especially among the Bahraini youth, there are significant unemployment issues and also minimum wage issues.

So, while international demand for property in Bahrain is strong and increasing and unlikely to subside in 2007 which means investors have a hot market to target, increasing land and construction costs and a growing division between local affordability and real estate prices is creating a very real environment of disquiet that should not go overlooked by an investor determining whether the risks of market entry outweigh the prospects for property market profit.

Three Great Places to Purchase Your Property

There are many places throughout the UK, where property is available to buy. Finding a location that suits you is another matter altogether!

Having been working in the property industry for many years, I have been privy to the viewing of many property locations and have thus decided to bring together a list of five of the locations that I feel offer the most for me. Each location is different and has differing qualities, hopefully providing you an insight into some of the better places to live.

Where should I buy my house or flat if I am looking for the nightlife and what to live in the south country?

A great place to buy is a small town called Hertford. I am starting with Hertford, not only because I know of it well, but also because it offers the history, nightlife and the prices to pray for!

Hertford is an extremely picturesque town, with the famous River Lea that running through it. It is home to a historic castle. Established following the Norman conquest, the castle in Hertford was home to royalty and it was this that partly fueled the town’s road to prosperity.

Hertford had its own corn mill and was helped with the River Lea cut-through in the 18th Century, but it wasn’t until the late 19th Century that the town started expanding outwards, mainly due to the new railway line that was introduced.

The town now has a good collection of bars, restaurants and shops and is an ideal location for anyone who enjoys both the nightlife and the quiet life!

Where should I purchase my property if I am looking for a quiet place, but need a good choice of jobs?

Jobs normally reside in locations close to cities or in cities themselves. I love London and being a southerner, I am going to discuss London here!

London is rife with jobs, the choice is sky high and the money is magic!

There are quite a number of places where people, especially those looking for the quieter experience to purchase. Watford and Bushy are reasonably quiet, they both offer good routes into London and there are many properties to choose from.

Watford is home to Watford football club and naturally attracts supporters of the club. Standing on a low hill near the River Colne, Watford was originally an agricultural community and has thus prospered since early times.

Offering many differing property styles, Watford also has a great shopping center, the Harlequin center often sees many repeat visitors.

The last location on the left!

Well actually the last location I will be discussing in this article, could be on the left or the right, obviously depending on the direction you are facing – sorry, for my humorous burst!

Kent is a fantastic place to live, visit and research. Kent is home to Canterbury Cathedral and the University of Kent. The county is full of rural and city-styled locations, catering for an eclectic range of tastes.

It is within driving distance of London and as a bonus, it is extremely close to the M25, which provides great access to many places, not just London.

The prices are hot, as is the weather and the people in Kent tend to be of good character – I would truly recommend Kent as a good quality location to purchase a property.

Recession Brings Life to Real Estate Investment

If there has ever been a better time for taking advantage of the financial possibilities offered by home foreclosures, it has to be now. The recent financial collapse has created a market with millions of foreclosed homes and hundreds of banks and other lenders desperate for solvency. It is currently possible to take possession of a foreclosed home for pennies on the dollar.

Buying a foreclosure used to seem like a less than honorable proposition. After all, for every foreclosed home, there was a family that had lost a dream. These days the situation has changed. Many home owners are much more prone to let a house go back to the lender without a major setback having occurred. Foreclosures no longer necessarily come with the sad story like they did in the past.

Real estate is one of the best investments available. Many people consider their homes their greatest investment, but hard core investors purchase real estate without ever intending to live in the home. It is simply an investment that they intend to quickly turn into a profit. At the very least, the purchase will represent rental income.

As ripe as the market is for buying foreclosures, real estate investing always carries with it inherent risks. Before you sink your hard earned capital into one of these opportunities, you should understand exactly what the investment entails.

Though you might be able to get the house for a rock bottom price, because of the availability of homes and the depressed market, you need to be prepared to hold on to it longer than you would have had to do before. Flipping a house has become more difficult and real estate is once again a long term investment.

The loan market is much tighter than it has been for many years. If your credit score is not up to par, you might have to put down a substantial down payment. Be prepared for this and make sure you can afford the expenditure.

Since you might have to hold onto the property for a period of time, you must factor in the cost of property taxes. This can quickly eat into any profits you are hoping to make on an investment property.

If the home has been empty for a while, you will likely have to shell out some fix it up money. In a depressed market, the buyer will not settle for less than perfect.

Make sure you do the research on the area in which your property is located. It should be an area that is on its way to emerging from the slump and not one that was late in arriving. If you plan to rent the property while you are searching for a buyer, make sure you know the laws and regulations on renting in the neighborhood. Some areas are very strict when it comes to renting since the residents feel that owners are more responsible.

Real Estate Taxes Vs Personal Property Taxes

Lots of people, like you, are living in confusion. Uncertainty clouds their minds and keeps them from “seeing” the truth as it really is. Take for example, distinguishing real estate taxes from personal property taxes. There are some individuals that don’t know the difference between the two. One reason behind that can be traced back to our teachers during the good old schooling days. That is completely understandable, because the way they explain the subject matter is so damn boring! When they finally hammer the information needed into the back of our heads, it’s quickly forgotten – who would want to remember a boring part of their life anyway? SO without further delay, I’ll be discussing the difference between the two in the simplest terms possible.

First and foremost, real estate taxes are slapped on to real property. Real estate is immovable prop, like land and all the infrastructure or improvements on it. For deeper understanding of what the immovable is, check out the following examples: a house is considered to be attached to the land permanently, which cannot be moved whatsoever, so it belongs to this particular category. Other examples include buildings, ranches, farmhouses, and other infrastructure attached to these are classified under real property, which means they’ll be charged real estate taxes. Moving forward, personal prop includes your movable assets, almost everything not belonging to real property.

An example of this would be your car, the animals or livestock you own, your furniture, and even your money. They aren’t permanently attached to the ground on which they stand, which makes them more than qualified to be grouped as personal prop. Getting back to the topic on tax, personal property taxes are assessed on property that’s used in business only, my friend. The local assessor in your area has the responsibility of providing you with a form, in which you’ll be given the obligation of filing it up. With it, you’ll be required to state the value of your property.

Real Estate – Private Property Rights

A call to action… Now is the time to act and for you to join the fight to protect and to keep private property rights that you use and enjoy. Well meaning individuals are campaigning to remove many of these fundamental rights that most Americans take for granted.

Every property enjoys a “bundle of rights”. Real estate agents and brokers work to market and transfer both the property and the property’s “bundle of rights”. These are the rights people have in real estate they own – also called “private property rights”.

There are two primary philosophies in America today regarding land ownership and real estate ownership. The first philosophy calls for and advocates the government owning the maximum amount of real estate, including land. People in this camp do not trust home owner’s and private property owners to manage their real estate responsibly. The opposing group, those who support people owning their own home or own land, see the rights people hold in private property as the core to living in a free society.

Well meaning socialists have advocated the public’s ownership of everything from your home, to land, means of production, capital, credit, to health care. This has been true since the start of recorded history. Socialism attempts throughout the history of the World, including those happening today, have all had the same result; failure. Evidence of this is seen in history books and in places like Cuba.

The United States was founded on the principal of every American having the opportunity and benefit of owning real estate and private property rights. “It’s all on your shoulders to push yourself as hard as you can. And that dictates how successful you will be,” according to The Code of the West; Alive and Well on Wyoming Trailer. It is essential for capitalism to flourish that you have the right to manage, control, and own your own home, farm, ranch, land, and your own business. The quality and standard of living we enjoy today, we owe mostly to our ability to own our own homes, our own real estate and our own land.

If you no longer had the right to own your own home, to own your own lot or your own land, what would America look like?

Private property rights are being attacked now more than ever by agencies of the federal government and by laws with deceptive labels. The Conservation and Reinvestment Act, for example, if passed allows the removal of private property rights; placing these instead with federal bureaucrats. The Grizzly Bear Overlay (GBO), if approved, may affect large amounts of land. Swaths of real estate in Idaho and elsewhere if approved, could suddenly become subject to the strict rules of the GBO. The GBO would restrict what people can do with real estate. If your rights in your real estate were lost as a result of an overlay – but not lost to property across the street from you, how would that effect demand and the value of your property? The Environmental Protection Act has a pretty name but in reality, the act transfers the management decisions you have in your home or property over to the the federal government. There are many laws and acts that have the same effect, such as, wet lands laws, endangered species acts, national monuments being proclaimed, and others that have consequences and limit the the rights an owner or renter has in their home and land.

Make Money in Real Estate

You need to be able to identify all of these aspects could be influencing your profit. You will find four major parts of creating funds in real estate: cash flow, appreciation, loan reduction and tax advantages. You should realize how do the four aspects work together to produce a rate of return.

Residential investment property isn’t merely making you a nice gain when it appreciates. And it isn’t necessarily loosing funds when it depreciates.

Know the economics inside your area.

You might have to look beyond the basic growth with the location you’re investing in to the overall health of the city, state and country. For example, if interest rates are rising, you need to realize that borrowers are getting restricted from the industry.

The half a dozen components of economics you are required to recognize are: mortgage interest rates, affordability indices, supply and demand, demographic information, commercial property and the job market.

Many potential investors take classes in both macro and micro economics. Macro will help the investor understand the big forces that impact this industry, for instance recessions, national interest rates, war and demographics. Micro will appear at individual sectors and focus on the local market, for example local disasters, nearby recessions, unemployment rates, supply and demand, new housing starts, housing for sale and kinds of vacancies.

There is a great deal that you should know prior to you jump into being trying to make money in this industry. Yes, if you’re just getting and fixing up and selling one house, you’ve the potential to make funds. But if you expect to do this as an investment, you should obtain the required education. Otherwise, you’re gambling with your money.

Buying Commercial Real Estate

It is well known that the American housing market is currently suffering. However, in spite of this, not all property markets are in decline. While the commercial real estate market has seen a slowing down, it has stayed healthy overall and now is as good a time as ever to be investing in commercial real estate. But what is commercial real estate for and what should you look for when considering the investment for your business or organization?

Considerations for Choosing Commercial Real Estate

Commercial real estate is property that is defined specially for business use. As opposed to personal or residential property, it is not made to be used for living quarters or other small scale endeavors. Instead, it focuses on housing a business or company. If you are considering starting a new business or if you are planning on expanding your current business, you may want to consider investing in commercial property. The following considerations can help you make the important decision of which property to invest in for the benefit of your organization.

  • What is your first impression of the location?
  • Does the neighborhood fit your business type?
  • What is the competition and support like near the property?
  • What is the hiring pool like surrounding the property?
  • What is the condition of the building and the property grounds?
  • What is the predicted upkeep needs for the property and the building?

Each of these important considerations can help professionals make the best decision possible when making the choice to invest in commercial properties.

Real Estate Possession Types

Property possession is not simply just ownership. There are many different types of possession but the they all fall under a couple of categories: freehold, statuatory, lease, and equitable. Understanding these types of real estate possession will help you not only understand whether a property can be purchased with clear title but will also give insight into ownership.

- Freehold is common ownership by an individual.
- Statuatory is possession by a husband and wife or community property.
- Leasehold is renting a house or apartment for terms.
- Equitable refers to liens.

The two most common types of possession is freehold (home ownership) and statuatory (husband and wife). Equitable possession does not mean ownership. This means that there is a lien on the property or a easement right. A lien is a debt that has not been paid and there for the debt is attached to the title and will be claimed when the house is sold. An easement is just a right to use land for a purpose. This could be using the land to access a street.

These real estate possession types are vital in understanding the industry. Here are a couple of ways to remember these terms.

- Freehold means an individual is free to hold the property.
- Statuatory can be easily remembered by thinking of the statue of liberty because the statue of liberty is a sign of freedom for everyone. Statuatory possession is the right and freedom of a married couple and an implied equal interest in the property.

Equitable could be remembered by saying it is equitable to have a road going through a property to a grocery store.

Leasehold can be remembered by saying a lease is to hold and long as my term to hold allows me to hold lease.

I hope that with this article you have a firm understanding of the 4 types of real estate possession and how you can remember the terms. These types of possession are vital an understanding the industry as a whole.

Real Estate Bargains

There are seven basic sources for real estate bargains. Each has both advantages and disadvantages. But the savvy buyer can often find the ideal bargain in one of these areas.

One of the best sources of real estate bargains is the property in “pre-foreclosure”. The owner realizes there’s a critical problem and may be willing to cut a deal to try to protect their credit. Some investors specialize in this type of property, taking over payments and then leasing the property back to the former owner. Disadvantages of this method include difficulties in identifying pre-foreclosure properties. Also, leasing back to the occupant may not be cost-effective-especially if he’s already determined he can’t afford to live there.

A popular option is foreclosure or reo (real-estate-owned by a bank or finance company) property. This can represent a significant opportunity, but properties are often in disrepair. And at least one metropolitan U.S. area requires foreclosure buyers to invest at least $1000 in improvements for every month the property sat empty-which could represent a significant investment before you ever see a return.

Tax sales are another common source of real estate bargains. However, a homeowner who can’t afford the property taxes probably couldn’t afford necessary maintenance either, and the property may be in a critical state of disrepair. Most areas allow up to two years for the owner to redeem the property, so once again, your return will be delayed.

One current trend is the short sale-where the buyer acquires the property for less than the seller owed on it. This is common in areas where property values have suffered a serious decline or where major layoffs have occurred. These are decided on a case-by-case basis, and require lender approval. It may take months to close a short sale.

Many real estate investors find their bread and butter in the form of “motivated sellers”. These are often cases where a temporary hardship requires a quick sale. Accident, illness, or divorce are common causes, and sellers may offer favorable terms to close quickly.

Another traditional real estate bargain is the handyman special. These are often rental properties that have been trashed by a tenant and the landlord just wants to get rid of the hassle. They can be a great opportunity-cleaning and painting can provide “instant equity”. Be careful of properties that are being tagged for code violations or condemnation-they may not permit do-it-yourself repairs and may turn into a bureaucratic nightmare.

Finally, estate sales can also be a bargain. You will probably need to be prepared with financing or cash, as heirs are seldom willing to offer creative financing