Archive for the 'Real Estate' Category
Sunday, March 11th, 2007
Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.
Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.
1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak. You need to know where the curve of the property market cycle is at in your preferred investment area.
2) Get ahead of the curve - as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.
3) Know your market - who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield - there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.
5) Purchase price - set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs - research fees, charges and all expenses you will incur when you buy your property - they differ from country to country and sometimes even from state to state. In Turkey for example you should add on an additional 5%25 of the purchase price for all fees, in Spain you will need to factor in an average of 10%25 and in Germany fees and charges can be in excess of 20%25. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential - what factors point to the potential profitability of your real estate property investment? If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs - if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless? In Spain a foreign buyer can incur up to 35%25 capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.
9) Profit margins - what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term - unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com/
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Saturday, October 14th, 2006
While housing prices have cooled in many markets, there are still some hotspots. Real estate investors are Gypsies when it comes to turning a quick sale: they will go where the home appreciation rates are still hot. In recent months they have abandoned Sacramento for parts of Arizona and New Mexico; as a result the sales rates in Sacramento have dropped considerably, along with the appreciation rate. What has not changed in any of the markets is the application of capital gains tax law.
Buying a house and then selling it after a short period may turn a profit for you, but how much of a profit depends on how the IRS views the transaction. Current law still applies a form of capital gains tax law to most home sales, with the rate depending on a couple of factors. If you owned it for less than a year, the profit will be taxed at your income tax level; for many of us thats about 35%. If you hold on to it for a year or more, the tax rate on sales profit will be at a lower capital gains rate, usually about 15%.
If and only if the home is regarded as your principal place of residence, up to $250,000 in profit - or $500,000 if you are married and filing jointly - will be exempt from the capital gains tax on home sale. In order for a home to qualify as a principal residence, you must have lived in it at least two years out of the last five.
Capital gains tax law also provides that you can defer taxes by exchanging the house youre flipping for another piece of real estate; known as a like-kind or Section 1031 exchange. The only restriction is that the property you are trading is an income producing asset and not personal property. Otherwise, you can trade a residence for a commercial property or a structure for a piece of land. The parameters are fairly broad as long as the house has been a business asset; thus the capital gains tax on home sales do not apply.
There is also a rule of moderation in this practice. If you engage in a lot of real estate acquisition and resale over a relatively short period, the IRS may look upon the sum of all that activity as a business, rather than an investment strategy. If they chose to do so, the capital gains tax law will not apply and the tax rate on your transactions will be based on the income tax index.
The leveling off in the housing market is going to take a lot of dabblers out of this business. Nevertheless, if you see continued opportunity in real estate trading it would be wise to consult your tax accountant as to the allowable level of activity and to ascertain the details for each of the rules that define this activity in capital gains tax law.
G. Mundy is a freelance writer specializing in bad credit mortgages and finances. For more information, please visit Mortgage Lenders Plus.com
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Saturday, October 14th, 2006
Your real estate website should be the epitome of professionalism.
Why? Because websites reflect their owners. So if a real estate website is sloppy and full of errors, readers will think the same of the agent behind the site. And who wants an error-prone agent helping them with something as important as buying or selling a home?
Take hyperlinks, for example. A website with broken links does not inspire confidence. It does not convey attention to detail, which is what people look for in a real estate agent.
The Reason for Broken Hyperlinks
Broken hyperlinks happen for several reasons: (A) The link points to a file that no longer exists. (B) The link points to a file that has moved. (C) The link is written incorrectly.
Regardless of why broken hyperlinks happen, you should make sure they dont find their way into your real estate website. When you do find them, correct them immediately.
Broken links say a lot about a website, and none of its good. They say…
* This is an amateur, unprofessional site.
* This site is not managed by anyone. (Known as the ‘ghost-town effect’)
* The owner of this site has no attention to detail.
* The owner of this site does not care about the site.
Checking for Broken Hyperlinks
Obviously, you dont want your visitors to think any of these things. So conduct a daily walk-through of your website — weekly at the least. Click on all the links (especially those that link to off-site information, as this information may have been moved without your knowledge). Make sure all images display properly.
A weekly review will only take you two or three minutes, depending on how large your website is. But no matter how long it takes, its essential.
How to Automate the Process
For a faster and more thorough approach, enter each of your web page URLs into the link checker at this site: www.validator.w3.org/checklink. It will perform an automated diagnostic check of the hyperlinks on every page.
Some of the errors the program returns will merely be recommendations. You can be the judge of that. But its a quick way to check links for basic functionality — especially on larger sites with a lot of links and pages.
* Copyright 2006, Brandon Cornett. You may republish this article in its entirety (and unaltered), provided you keep the hyperlinks active and include the byline and authors note.
About the Author
Brandon Cornett wrote the book on real estate websites and web marketing. The Agents Guide to Websites & Web Marketing includes more than 50 pages of tips and strategies, helpful illustrations, and a comprehensive review of real estate websites from all over the web. Learn more at: http://www.armingyourfarming.com/products/webguide.php
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Friday, September 1st, 2006
Real Estate Web Design: Are You Being Sold?
Abstract: Real Estate Web Design experts review the needs of Realtors(R) and real estate brokers, and highlight the advantages of dynamic real estate websites.
The most successful real estate agents and brokers realize the value of their agency websites and are constantly working to improve them. Unfortunately, many agencies throughout the United States are still working with static websites that are difficult and costly to maintain.
But how do I upgrade? you ask. Often this is not a simple answer. You need to consider the needs of your business and your agents. How will you manage listings? Are you using a Multiple Listing Service (MLS)? Should your agents have access only to certain parts of your administration panel, and not others? What about logging agent and visitor actions on your website? Here is what you should look for in any real estate management system you contract for:
Dynamic, searchable listings. If your listings are not currently in a database and searchable, they need to be. This feature is the reason so many homes are sold online. It’s the “shopping in your underwear” principle: if a web surfer can access information about your homes at 11pm, and in a bathrobe while watching %2526lt;em%2526gt;ER%2526lt;/em%2526gt;, no less, a whole new window of opportunity is opened, allowing you to showcase your listings 24/7. He immediately emails you and sets up a showing; you arrive at your office the next day, get the email, call him, and you’re on your way to making another sale.
Easy contact methods. All the interactivity on the Net won’t help you if your potential client can’t get in touch with you. Make sure that your newly designed website has plenty of opportunity for users to click to your contact forms: a link from every listing, and multiple contact methods (phone, email, etc.). Don’t require too much information on the form, but make sure you get enough: at least a name, an email address, and a phone number. Also, don’t rely on straight email links to get the job done: many computer users do not have a default email program installed, so when they click on your link all they will find is a setup wizard–a confusing and annoying situation for many users.
Lead management. The other end of the line of communication must be tied in: your lead management system must dovetail perfectly with your website. If you have an existing lead management system, see if your web design company has already built an interface for it, or would be willing to build one for your website. If you do not have a lead management system, find a website system that will provide one for you, seamlessly integrated with the site itself, such as the AWS Real Estate Manager.
System logs and user management. Real estate agencies, unfortunately, are not immune to legal issues with personnel and properties. System logs help you track down what was done on your site, when, and by whom. Make sure that whatever real estate website you choose includes a system log that shows you key activity on your site. You’ll thank yourself later when a dispute arises.
Likewise, you’ll need to specifically manage which sections of your site certain agents are allowed to edit, and others they are not. The administration panel of your website should have a section for setting user permissions: whether a user can edit all listings, or only those assigned to him; whether he can add or delete other users on the system; how many listings he can have and how many images attached to each; whether he can access the system logs, etc. These features will help you properly regulate the bandwidth and quota your site uses so you won’t incur extra charges each month, as well as avoiding duplicate work and conflicts among agents.
Self-updating site pages. If you’ve outsourced updating of your real estate website to a web design company, you know how expensive it can get. Such updates need not reach so deep into your agency’s coffers. When researching your new site, see if it provides a tool to allow you to create whole website pages on your own.
But I can’t write webpage code! you say. You shouldn’t need to. If the site is designed correctly, you’ll have a form that walks you through the process of adding page data and content, complete with hyperlinks, images, font formatting, table creation and all the HTML essentials–with nothing required except a little aesthetic sense. With such a system, you could easily save $2500 or more per year on outsourcing costs.
Whether you’re starting a new real estate agency or are looking for a new design for your real estate website, this information should help you find an effective system that will suit your business’s needs. Other items to consider are search engine friendliness of the website system, marketing skills the firm can bring to the table, and support. Armed with these questions, you can be sure you’re getting your money’s worth, and that you’ll encounter as few problems as possible with the implementation and maintenance of you new website.
Tom Burke http://www.awsinternet.com
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Monday, August 28th, 2006
MLS is the Multiple Listing Service.
The MLS is a database - an extremely convenient way to know what properties are for sale at any given moment. This makes it very useful to real estate agents and brokers.
Basically, the MLS is like a huge property warehouse. When a property is available for sale, it enters the warehouse. When it is sold, it leaves the warehouse.
The MLS only contains information since real estate cannot actually be stored in a warehouse. This information comes from the various brokers that exist in the scope of an MLS.
Why the MLS works for home buyers
First of all MLS is very convenient. Buyers can browse through the available properties listed on an MLS.
Using the MLS also does not cost anything. It is a free service that is sponsored by the Realtors advertising their available properties.
Options Galore
On the MLS, a buyer is not limited to choosing among a few available properties. Usually, the MLS makes available many available properties that are for sale.
In the olden days, when information was limited, a buyer would only be able to visit a few homes per day. He or she would also need to communicate with the agent for details and such.
With MLS, the buyer can start browsing from the comfort of his or her home. Details regarding the property are also listed there.
Aside from the written details, MLS usually provides pictures of the property. Other advanced MLS implementations even have other surveying tools that help buyers come to decisions regarding their desired property.
Fitting the Bill
MLS also helps the buyer by narrowing down choices to those that fit the buyer’s desires. The buyer supplies information on his or her desired property to the MLS site. This information includes desired area, size of property, age, location, and others. The buyer is then given a set of houses that fit that description.
Communication
MLS also makes it easier for the buyer to contact the realtor. Details the realtor are listed along with the property to allow straightforward communication between buyer and realtor.
Conclusion
It may be hard to believe but the real estate industry has benefited a lot from MLS. MLS is the next step in real estate evolution. It is relatively safe and is very convenient. As the MLS grows in popularity, more and more realtors avail of its listings. For the buyer, this can only mean good things more choices, better decisions.
Jay is the web owner of http://www.homes-in-california.comCalifornia Homes: Buying or Selling, a website that provides information on California real estate buying, negotiating, financing, and more. You can visit his website at: California Real Estate
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Sunday, August 27th, 2006
I had a hard time at first with real estate investment. One of the reasons was that I tended to be a “lone wolf,” trying to do too much myself. I’ve since learned that to really do well investing in real estate, you need to have a team of people you can trust and rely on. Here are some possible team members, and what they need to be on the team.
1. Real estate agent. A licensed agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be a great help. If she is a seller’s agent, she can still ethically bring the best deals to you once she knows you’re a serious buyer.
2. Real estate attorney. This should be someone familiar with the laws and legal customs of your area, and have experience with the type of deals you intend to do (If you are buying rentals, she should be familiar with doing evictions, for example.)
3. Accountant or bookkeeper. Keeping proper books for real estate investments is getting more complicated with all the tax-law changes. Find someone that understands the law, and what you want.
4. Mortgage broker or banker. The first can offer many options, but the second can make the loan decision. Each has their advantages, and you could use both. In either case it’s important that they understand what you want (fast closings, lower interest, corporate loans?)
5. Appraiser. Not only can a good appraiser give you an accurate valuation of a property, but they should be able to suggest ways in which you can raise the value of a property. Use someone that will talk to you.
6. Inspector. In some areas it is easy to become an inspector with little experience. It’s best if you use one that is or used to be a contractor, so he can find the problems AND give you some idea of the cost of repairs.
7. Insurance agent. A good one will understand what you want, and find ways to save you money. Insure all your properties with one agent, and you’re likely to have discounts available, and better service.
8. Escrow officer. They will usually be with a closing company. Look for someone that’s efficient, and can explain things clearly to both sides. If he is confused by a slightly creative contract, he should educate easily or be replaced.
9. Cleaning person. Having a trusted person or crew ready means a fast turn around when you buy a rental or rehab project.
10. Property manager. Be sure that the company you hire has exerience, is responsive, and will have time when you call. A good property manager can tell you BEFORE you buy, what you should get for rent in a given area.
Real estate investment is less stressful and more profitable with a good team on your side.
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
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Saturday, August 26th, 2006
Ask yourself these questions:
·Are you an experienced writer? ·Do you want to stay at home to write? ·Do you want to work for yourself? ·Do you learn new things quickly? ·Are you interested in a broad number of subjects? ·Do you feel like you’re being pigeonholed with your current writing and you want to branch out? ·Do you have a flair for marketing?
If you answered “yes” to any of these questions - or even better - several, you may have found a new career!
It’s more important than ever for real estate professionals to market themselves legally considering the laws regarding email and telephone sales seem to change daily - depending on which court is hearing the case. Many experts speculate though that eventually some sort of anti-telemarketing law will be enforced and while it’s much more difficult to regulate email, it’s still being made more and more difficult to use this form of marketing and sales. So basically it comes down to the fact that real estate professionals need an effective way to market themselves without breaking the law.
If you’ve ever done business with a Realtor or Mortgage Broker they probably still send you newsletters, recipe cards, sport’s schedules, notepads, etc. If they don’t they aren’t marketing themselves very effectively and you may have found your first client!
The majority of a real estate professional’s business comes from word of mouth - whether it’s repeat business from people who are refinancing their mortgage, applying for a home equity loan, selling their house, renting their house, or from clients who recommend “their guy” to friends and relatives. Whatever it is, it’s in the professional’s best interest to keep their name on your mind.
The frequency with which real estate professionals send out these marketing materials varies. My own Realtor usually sends me a quarterly newsletter along with goodies like flower seeds and notepads throughout the year. Some of the more industrious professionals actually send out newsletters on a weekly basis!
The key is for the professional to get his/her name and phone number in front of as many sets of eyes as possible. When the professional sends you a newsletter, that includes several interesting articles, such as how to increase the value of your home or budget decorating tips or how to clean up your credit before you apply for a mortgage, etc. you find these articles so fascinating you hang on to the newsletter. Or you know that your next-door neighbor is particularly interested in decorating on a budget so you pass it along to her and so on. Next thing you know, many set of eyes have seen the real estate professional’s name and they decide to call him/her when they need the services of a real estate professional.
When your cousin Vinney calls you up out of the blue to tell you he’s moving to Arlington and “do you have a Realtor you can recommend” you do of course because the sport’s schedule/newsletter/recipe card your Realtor recently sent you is hanging on your refrigerator.
So what does all of this mean for you the freelance writer? It means more assignments and more money! After all, the real estate professional is either too busy or simply doesn’t have the desire or skills to write their own newsletters and other materials. What they need is a freelance writer to handle this crucial aspect of their business.
To be certain, like any business you’ll need to get out there and hustle and market yourself before you can expect to market for your clients. You’ll need to prepare professional looking samples to start out with and hawk these to as many real estate professionals as you can think of. You can find these professionals by looking in the phone book for addresses, pulling fliers from yard signs and introducing yourself to Realtors conducting open houses to begin with.
Writing for real estate professionals can be a fun, lucrative and interesting business. Now get out there and get to work!
Isabel Fena is the author of the e-book “The Untapped Market: How to Make Money Writing for Real Estate Professionals.” You can get a free sample chapter of her e-book at her website www.isabelfena.com or you can buy the whole e-book for only $11.95 at www.booklocker.com/books/1339.html.
Isabel Fena is the author of the e-book “The Untapped Market: How to Make Money Writing for Real Estate Professionals.” You can get a free sample chapter of her e-book at her website www.isabelfena.com or you can buy the whole e-book for only $11.95 at www.booklocker.com/books/1339.html.
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Saturday, July 29th, 2006
You’ve lived in your house for 30 years and now it’s time to sell. Should you try to sell it on your own or do you get a realtor? Choosing a real estate agent will be one of the most important decisions you will make and it’s a decision that you should not rush into.
You should do your research before you sign on with any realtor. Selling your house is a major life altering decision. Too many house sellers call the first number they see on a lawn sign while driving around and use them. Others call the first number listed in the phone book. Just because a realtor is popular or begins with the letter “A” doesn’t mean they are right for you.
When choosing a realtor you may want to choose a company that has been in the business for many years. Chances are they would have past experience with selling a house similar to yours. This is the time to get references from people who have sold their homes recently. See if they had good experiences with a particular realtor and THEN do your homework to see if that particular realtor is right for you.
Another factor to consider is the level of education your Real Estate Agent has. In some states it is pretty easy to get a real estate license. Ask for credentials, check to see if your realtor or real estate agent has won any awards or has any advanced real estate licenses. For example some real estate agents also are appraisers or mortgage brokers. This shows they are in business for the long haul.
Ultimately, go with your gut feelings. If a possible realtor tells you that they can sell your house for much more than the appraised value, don’t trust him. He is wasting your time and you won’t have a happy selling experience. Each sale is important to you and the realtor. If you feel like you are just another sale it’s time for a new realtor.
A “>Real Estate Agent can be a huge help when selling your house… or they can be major obstacle and create problems. Chose carefully. You and your money will be spending a lot of time with this person.
Real Estate Resource HQ is a web site designed to answer all your Real Estate questions.
You can view the site at http://www.realestateresourcehq.com Thanks Michael Contaro
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