Great Prospects For A Real Estate Investor

Real Estate InvestorIn the face of the difficulties faced by economies worldwide, we have to take cognizance of the urgency of looking for sound investment prospects for a real estate investor.

Most would obviously avoid real estate investment prospects like a bubonic plague. However, seasoned investors are actually excited about the latest leading economic indicators that points to a definite windfall in the real estate sector.

Emerging Trends in Real Estate Business

The reason that most of us are doubtful of any prospects emerging in the real estate sector is the fact that it has triggered this economic turmoil that we are suffering right now.

When the real estate bubble burst a couple of years ago, it led to a series of turbulent shockwaves that rocked the very foundations of the US economy. Most see the sector in total ruin with no apparent hopefuls in sight.

There is actually a silver lining to all the debacles that real estate has been experiencing. Amidst the sub-prime issues, real estate mortgage defaults and liquidity and bankruptcy issues, we see one emerging investment hopeful. This we have to take advantage of, as it will be a hot item very soon!

It is an accepted fact that during economic recessions and meltdowns, real estate assets are undervalued. However, it is the kind of asset that leads in appreciation every time the cycle recovers and makes a rebound. It is one of the safest forms of assets. Cashing in on real estate properties at this stage would surely pay dividends as you purchase prime properties way below their real values.

Further, amidst the dips in the stock market, we see the erosion of our wealth. The stock market would not be an attractive investment opportunity at this time. In order to preserve the value of wealth, the best option for real estate investor is to cash in on prime properties.

These two-tiered beneficial effects are the strong arguments for a real estate investor to continue to keep their faith on real estate investment properties.

There is more to it than these two acknowledged beneficial effects. A real estate investor stands to earn huge profits if he makes his move now and engages in a buying binge!

A real estate investor should closely watch the emerging trends in space rentals. There is a clear indication of good investment opportunities for a real estate investor. Due to the downtrend in home buying and coupled with the high incidence of mortgage home foreclosures, there is now a sudden increase in the demand for rented space.

A real estate investor with equity must take advantage of this opportunity as it would immediately lead to significant profits even in the short term. As the market forces increase rental rates, buying prime real estate properties at amazingly low prices would be an extremely attractive investment prospect for the real estate investors.

The good news does not end there. This investment opportunity gives the opportunity for the real estate investor to assume enviable and strong position to gain even greater profits once the economy makes a comeback.

The concurrent economic indicator of this event would be the increase in value of these prime real estate properties.

This is the main reason why a seasoned real estate investor is buying real estate property like there is no tomorrow.

Making Big Bucks In Real Estate IRA

Big BucksRetirees and pensioners can join in the action that is happening in the playing field called real estate investment.

Most of us have been witness to the tragic events in the stock market and other fund management investment options. We watch helplessly as interest rates plunge to record lows. A growing number, however, are rediscovering another investment prospect; and that is real estate IRA. Real estate

IRA involves buying in real estate properties; from undeveloped tracts of land to homes, and even large commercial buildings.

Critical Issues About Real Estate IRA

However, one should be very careful with real estate IRA. This business prospect is littered with financial “mines.” A single misstep can cause serious financial setback and damage. The game is played with very complicated rules and the risks are high. A simple miscalculation may lead to the forfeiture of your tax-deferred status.

It is important that you are properly guided with your real estate IRA as

it is important that you avoid committing mistakes and end up doing more harm than good. When you are exploring possible real estate IRA options, most IRA experts are recommending real estate investment trusts. The present limitations of real estate IRA simply result to the forfeiture of you tax incentives by merely owning a real estate property.

Under this setup, you can’t make claims for exemptions on mortgage interests and property taxes, and even on depreciation of your property.

Under the traditional real estate IRA, profits are classified as ordinary income that is subject to taxation. Another critical issue of real estate

IRA is on the requisite for the IRA having sufficient cash buffer to cover expenses related to management fees, taxes and maintenance. All of these expenses and other expense items of the same nature are paid for by the IRA.

This, however, should not discourage those who are seriously considering real estate IRA. We have to be clear about it, lest it might be misconstrued that it is not wise to try real estate IRA. The potentials to parlay big earnings in a real estate IRA are simply enormous. What needs to be done to gain this benefit is to do things the right way. We could learn some important tips from the success stories of those who have been there already and came out big winners. One of the common denominators for all these success stories is that they have invested a lot of effort preparing for their real estate IRA investments.

For instance, you have to find the right property to buy. You are not allowed to use your IRA to purchase your own house or vacation home.

Further, you have to assign a custodian for your IRA that would allow real estate IRA. Looking for a mutual fund company or a local bank would not be helpful, as there are just a handful of custodians who can handle real estate IRA. You can start your search for these types of IRA custodians on the Web.

We should always remember that the key to success in real estate IRA is by knowing the right things related to this investment prospect and doing it the right way.

Real Estate Groups – Quick Tips To Choose The Perfect Real Estate Groups

Real Estate Groups

Are you looking for your perfect dream home and you have too many real estate groups approaching you with alluring deals? Are you unable to decide on any one real estate group or agent to work in tandem with? Read on to determine the perfect real estate groups that will help you seek the home of your dreams well within your budget and without any legal complexities. Here are a few tips that you must keep in mind when hiring real estate groups.

Finding a real estate group to assist you in your life’s most important purchase may not be tough; but to find a great real estate group is definitely a tough job. So, while you may be confident of striking a very good deal since the customer has an upper hand at present, do be careful of fake real estate agents or groups.

Look for authentic and notable real estate groups through your friends and ask for recommendations. Make sure they are authentic and have good experience in the kind of property you are looking for. Certainly look for credibility.

One can look for credibility through reviews, forum, articles on internet or simply by enquiring about them to friends and acquaintances. Ask them for their honest opinion. You must get a feed back on customer care and service as well. A good group should be able to give you great customer service all around. They should be able to honor your timings and availability.

Do not be in a hurry to settle on your real estate group. Take time to talk to them and get to know them. If they do not appeal to you or you are not absolutely satisfied with your meeting, simply contact another group.

Remember, in the real estate industry a lot of marketing and integrity is dependent on word of mouth and relationships. Your agent will make sure that he or she does an amazing job for you. This will only help his business grow further through recommendations.

Look for a group that understands your requirements and do not try to sell or thrust properties they want you to buy. Most real estate groups are under intense pressure and stress to sell in a slow economy like the present. This is a very important aspect. Be careful.

The real estate group you choose should be able to give you a complete and intense guidance on all aspects such as the pricing, the legal issues and to certain extent even the home loan. You should be looking for a complete package so that you do not have to run to other experts for direction.

There are many great real estate groups that will provide you with end to end specialized service. Just look around you and a little online and offline research will surely get you wonderful and faultless real estate groups that will help you purchase your dream home!

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Using Visionary Thinking To Take Your Real Estate Business To New Heights

Real Estate BusinessAre you a visionary thinker? Do you look at the “big picture” of your real estate business and try to see how everything relates to the success of your business? Visionary thinking goes beyond just daydreaming. It embraces deep thinking, the working out of issues and planning for the future. And visionary thinking can bring your real estate business the success you have dreamed of.

First, look for signs of change. How do your real estate colleagues react to the market changes? Do they hunker down and get stingy with their marketing dollars? Do they jump ship altogether? Or do they re-focus their business and look forward to the future?

Look around and identify changes in real estate professionals and how they weather the ups and downs in the real estate market. If you see those changes and react properly, filling in the voids left by those real estate agents who stunt their marketing efforts in fear and embracing change within your real estate business, you set yourself up for your immediate future success!

In fact, you can ask yourself questions that will envision the future:

– What do my current customers need from me in light of today’s real estate market?

– What can I do to help prepare my clients for the coming changes in the real estate market?

– How do I see myself helping people in real estate in X years?

– Am I receiving honest feedback from my clients and using it to better my real estate business?

– How else can I embrace technological developments and implement that within my real estate business in a way to benefit me and my clients?

Think you know everything about real estate? Whether you’ve been in the business 2 years or 20, there is always something new to learn. A visionary wants to learn, to continually educate herself on the industry. Everything from legal procedures to possible ethical dilemmas, you should stay educated about the real estate world and you can do this in different ways. Read real estate related periodicals.

Peruse real estate online news sites. Network with real estate colleagues on message boards and blogs all over the world. Yes, a real estate agent halfway across the world may just shed the light on a subject that you’ve never even thought of…and may just spark the idea that could lead to a revolutionary marketing strategy for your geographical area.

Also, think contrary. Maybe you shouldn’t do the exact opposite of what your competition is doing, but you can think about what you can do that is contrary to the typical response. Avoid the norm. Embrace the different.

Next, build a team. Don’t just go through real estate flying solo. Think to your future business. How can you possibly handle it all? Even if you’re not in the position to hire a buyer’s agent or a listing specialist right now, you can still align yourself with various professionals across industries who can help you build your real estate business and brand. Who can you ally yourself with and create a team mentality?

– Graphic designer for logo, marketing materials, etc.

– Web designer (may be one in the same as graphic designer)

– Marketing assistant for development of marketing materials, distribution of materials and more

– House cleaner

– Stager

– Home Decorator

– Architect

– Carpenter

As you build your team, try to think who can help you and who would be a forward thinker. You want team members to have similar ideals and vision.

Identify potential risks within your real estate business. Do you have a marketing plan in place? Are you reviewing your marketing successes and failures and learning from them? Ask yourself some tough questions. This isn’t a moment to shirk from something that could be hazardous to the success of your real estate business at some point down the line.

Lastly, keep lines of communication open. Communication is key with visionary thinking. You don’t live and work in a bubble. You need to communicate with your real estate broker to stay on top of the broker’s plans for the future. It wouldn’t help your real estate business to be blindsided by some changes made by your broker that you were not aware of.

You also want to keep in contact with your clients, no matter how far off you think their needs are. Visionary thinkers plan for their clients’ future needs and anticipate those needs. By staying in communication with clients you make it easy for them to work with you years down the road, or earlier if plans change.

Investing In Real Estate Made Easy

Real Estate InvestmentTo own a home is still many people’s dream in today’s world. As the times have been going, many people have tried their luck in various investments, major among them being real estate investment. In present times, real estate investment has grown into a big field and the homes being built are even more diverse as many contractors try to make more comfortable places for people to live.

Despite the boom in real estate investment, a lot of people are still very much reluctant to join in as real estate investors for they do not quite understand the aspect surrounding real estate investment. But looking at real estate investment, as a business opportunity brings light into the whole aspect of real estate for one will be in the position to look at it in terms of; generation of rental income, collateral in the acquisition of a loan, in the event you need to offset taxable income or just from the point of resale profits gained.

Going into real estate investment can guarantee great significance with minimal risk involved, provided, one is able to understand the fundamentals that surround the real estate. A common example of a real estate investor is one with ownership of a couple of real estates where by he resides in one of his houses while the rest he rents them out to tenants and from the tenants is where he accumulates his/her income. There is also the aspect of price appreciation in the value of land or even homes in one way or another paving way for major capital gains.

With the ever advancing internet technology, now real estate investors can easily check out various real estate investment opportunities while also getting access to articles which are very handy in terms of giving out tips and strategies concerning investments.

Growth in the real estate investment can be attributed to the low rates being charged for mortgages even though real estate properties have been on the rise in big cities and towns in terms of value. The major factor which you should carefully look at though is the equity, which is the deference that is available between the whole amount that you will need to pay for your mortgage and the actual value of the property.

On various occasions in the world, introduction of tax breaks has greatly assisted most real estate investors to get into investments and what many people so as risky in terms of the capital invested has now turned out to be a great cash cow.

True success in real estate comes when one finally understands how to utilize the income from the property, in covering the maintenance costs of the property as well as ensuring that one gets some return either for reinvesting or saving.

Ways To Make Money From Singapore Properties

st way – buy low, sell high
Very simple strategy. Timing is key to success for this strategy. Opportunity for buying low is during recession, when sentiments in job market and economy are low (the lower the better). This is a great time to enter the market ‘coz prices will be depressed. Some investors like to buy when prices are “relatively attractive” or “affordable” according to their means. Some investors may choose to buy in only when there’s signs of uptrend (so they are buying at the base of the upturn).

So how do we know whether it’s the bottom? During the bad times, many will say “it’s too risky, it will go lower, let’s wait”. Do understand that real estate is inherently an illiquid investment, as opposed to the equity market. The periodic charts / graphs / data presented (on a macro scale) will be good indicators of how the real estate market is moving. The stock market chart may show volatility (up 1 day, down the other, up 1 week, down the other) but real estate market data will trend for quite some time before peaking or bottoming (we also won’t know exactly how long, that’s a question which only the market has an answer to).

Many home buyers like to think that today’s prices are “too expensive” relative to last month / last year’s price. We will only support such thinking if the broad data shows “all-time highs”, otherwise smart buyers should understand that its not only you who is buying at this “higher price”. If others are buying around the same price, then it is only natural that the market forces will continue to push the prices even higher because each buyer-turned-seller will continue to ask for higher prices to gain profit, and that is how everyone plays the game (well, at least until the bubble bursts).

2nd way – buy at a discount
Simple strategy but often neglected. So, you may be curious as to where exactly can you find properties at a discount? Most real estate articles will teach you to look for foreclosures (auctions), urgent sales, etc. So, we won’t say more about those.

There’s another type of property which we believe can be considered as “discounted” – old apartments in worn-out condition. A word of caution – you should be somewhat interested in doing renovation works, talking to designers and contractors if you are interested in trying out this type of discounted properties. And always remember the 3 golden rules of real estate – location, location, location.

In fact, you can also find discounted properties in new condo projects as well. How so? … stay tuned to our updates and we will tell you more =)

3rd way – buy to lease out
Rental yield (your rental returns on your property purchase) is a fundamental way many people make money from properties. If you are looking into this strategy, may we suggest purchasing 99 year leasehold properties (in a great location) instead of freehold (in the middle of nowhere)? Tenants are willing to fork out higher rental for (1) convenience, (2) comfort. Tenants will not pay you more because your property is a Freehold tenure (even if you had to pay the seller / developer more). Tenants will pay more if your property is near a subway (MRT), or has wonderful facilities, is nicely furnished and lets them hugely enjoy their limited period of stay in Singapore.

We have a list of properties near subway (MRT) which will be updated onto our blog soon. Your can stay updated on our blog via email or you can see the updates on our twitter page and facebook page as well.

Property Investment Vs Property Speculation

Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.

Using your facebook privacy settings Profile to Sell Your Real Estate

Some people find that it’s most expedient to create a new facebook privacy settings profile for selling their real estate. However, if you already have friends and family that are also contacts, you might want to just go with the profile they already have fielded. In any case, setting up a facebook privacy settings profile to further your real estate business is easy, but requires some thought.

Unfortunately, facebook privacy settings are not yet to the point where you can automatically designate specific posts or applications as not-to-be shared. If you have your Wall open to the public or you’re News Feed, you may want to ensure that everything posted is client-friendly. This may mean censoring both your and your friends’ contributions to your facebook privacy settings profile.

Setting the facebook privacy settings controls on your facebook privacy settings account will help you make this a dual account for both clients and friends. Depending on the nature of your contacts, you may want to designate certain areas as -certain friends only- and similarly restrict who can contact you certain ways.

Deciding whether or not you want to open your entire profile to the world depends on how accessible you want to be. You can always request a client as a friend or give them your facebook privacy settings contact info to request you. However, if you want people to be able to access your real estate information on facebook privacy settings, it could be a good business move to judiciously open up a few key parts of your profile to the public.

Your basic information is probably something you should keep to a select group of friends. Your clients don’t need preconceived notions about you based on what they can read about your sexual preferences, your religion, or your political views. Unless you are aiming to sell real estate only to persons of a certain religion, noting that you are a passionate follower of the Flying Spaghetti Monster may cause people to pass you by, even if you aren’t actively proselytizing to them.

Your profile pictures are a good one to leave open, but make sure they are professional and simple. Don’t post pictures of your family or your dog or your wood tick farm. Your clients like to be able to see a clear photo of you, so they can recognize you. It’s okay to have a photo or two of your family in a different album (some people like to have a feeling of connection with their realtor) but don’t overdo it.

Applications are a hard one. Consider not adding too many frivolous ones. If you absolutely must have some, place them at the very bottom of your facebook privacy settings page, where only the determined ever go. And, whatever you do, don’t use them to contact clients with facebook privacy settings.

The Search function can be modified to show as much or as little information as you want. Since you are using this profile as a business tool, you will probably want people to be able to contact you. Set the Search Visibility to everyone, create a public search listing and allow people to find information about you and send you messages in facebook privacy settings.

You’re News Feed and Mini-Feed you should keep open. Every time you change something on your profile, it will be noted and is a great way to let people know what you’re doing with your real estate without actually annoying them with direct messages. This can be modified to show people certain actions and hide certain actions. Play around with the facebook privacy settings controls to find the best combination. This is where you can hide updates to personal information that clients need not see in facebook privacy settings.

Use the facebook privacy settings>Applications section to restrict views of anything else you don’t want people to see. It’s up to you to consider whether they would benefit from knowing which groups you belong to or events you’ve been invited to facebook privacy settings.

Look at your facebook privacy settings profile from a client’s view. Block everything that could leave them with a negative impression, but leave enough that they get a definite idea of your approach to your business. A Facebook privacy setting is an incredibly fast-growing social networking site which is enhanced by its easy-to-use, professional-looking layout. It definitely can be a valuable tool when used to enhance a professional image with facebook privacy settings.

Assessing The Reasons For Home Inspection Negotiation Failures

The scenario is all too familiar. Real properties get into escrow with serious and qualified home buyers and then, by a sudden shift of events, the deal doesnt push through and the same property ends up in the market after a few weeks. What seems to be the problem?

There is probably a long list of reasons why real estate negotiations fail. For instance, there are some homebuyers who have the tendency to get the home for sale on escrow even if they have not yet made up their mind in paying the price offer. Sometimes, buyer will dangle a tempting offer to sellers prior to inspecting the home and resort to price reduction during the actual home inspection. This is usually the case in a buyers market. The situation sometimes deteriorates up to a point where the seller are abused and forced against the wall by the enormous cutbacks and unbelievable demands by abusive buyers. Sellers will ultimately opt out of the deal once they feel that deceit is being applied on them.

Home inspections are designed to thresh out ticklish issues that affect the deal. However, it presupposes that both parties come to the negotiation table in good faith. Buyers need to make a good offer after the home inspection has been done. On the other hand, sellers must be cautious when dealing with buyers making offers that are way off the current price trends in your area.

In most cases, the major hurdle usually comes during the home inspection phase. Deals usually take the dive because of results of the home inspection. Serious complications come about when sellers dont or cant accommodate the adjustments being proposed by buyers. A stalemate in the negotiation will invariably result to a fall out in the negotiation.

Let us look at some of the major reasons behind the failures in home inspection negotiations:

1.It is now getting to be a common practice to allow sellers agents to be part of the home inspection negotiation. This might not be a good idea for most buyers especially if the home inspection becomes complicated and leads to unmanageable situations and the negotiation gets out of hand. Buyers naturally dont want to have extra hand that can pull the strings in favor of the sellers. You have to remember, that the seller will seek the professional advice of his agent to determine the best way to respond to your request for adjustments. If you are really serious in getting through with the deal, then there is no reason for you not to allow the presence of the sellers agent during the home inspection.

2.It is also essential that you are able to assess the home inspection result from the perspective of the seller. A competent and experienced agent can be able to prepare a well-crafted inspection response that will facilitate the resolution of serious issues reflected in the home inspection report. Problems usually complicate the negotiation if the inspection response involves demands that the other party cannot respond to.

3.Making unrealistic demands is tantamount to sending the deal to oblivion. What do you think will happen if you insist on pulling down a wall panel simply because the inspector cannot give you a definitive answer on what is behind that wall. Sellers will definitely not approve to such kind of demand and, ultimately, this can lead to a stalemate if either party is not willing to relent.

To avoid these common complications in your home inspection negotiations, it is important that you are accompanied by your agent and allow the agent of the seller to be present during the negotiation. If you have some unresolved issues and doubts with the results of the home inspection, then it is wise to get a second opinion of another home inspection specialist.

Another Price Hike For Sellers In Real Estate – More To Come

The summer is here and sellers will be warming to the fact that July has seen another spike in house price levels across West Vancouver and Greater Vancouver in general. Yes, once again house prices have peaked, giving homeowners in West Vancouver an opportunity to make hay while the sun is shining on the real estate market.

In the month of June 2014, house prices across Greater Vancouver rose by 6.2 percent year on year. Furthermore, these figures are calculated by leaving out some of the more expensive mansions priced up in West Vancouver. So if one were to include the high-end luxury homes in the equation that figure might even be higher still.

The burning question for sellers is – has the latest bubble in the housing market reached its zenith and will we see a burst in the very near future? Is this summer a good time to sell and relocate or should a seller be holding on and wait it out to see what the market does?

The real issue with the real estate market in West Vancouver is that is does not follow the same trend as the rest of Canada. Index prices for West Vancouver detached homes has reached just over $2 million, that’s double the amount of index prices from the less opulent North Vancouver district.

It’s also worth noting that West Vancouver and British Columbia as a whole has benefited from the influx of immigration from around the world, particular Asia. It has boosted an already-vibrant economy and helped to bolster the housing market. Investors from China have helped to push up the price of luxury real estate in a way never seen before. You have to understand there’s something of a revolution in China and its economy and back in the 20th century making money behind the bamboo curtain was something exclusive only to a few Communist Party bigwigs. Now such an opportunity to become wealthy in the world’s most populous country has become easier for millions more. Much of this wealth is used on buying luxury real estate in places like California, Florida and West Vancouver.

The future is very bright is we rely on the investment of Chinese and Asian property investors and all that comes despite the tightening controls implemented by both Canadian and Chinese authorities implemented to stem to rising tide of overseas investment in Canada (and the United States) as a whole.