To 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.
Who can and who should take the real estate training or course?
Practically anyone who wants to make a career in the property industry can choose to go for the training. If one feels that they can carve their niche in the property sector and have what it takes to excel in the profession, a good real estate course will be of crucial importance.
Amid the current financial recession when all industries appear to be toppling, property industry is still somewhat stable. Although there is an evident slowdown in the industry, yet it is growing. So the requirement for real estate professionals has not eroded and every property company needs a property professional. Today, when career opportunities in other professions show a great deal of saturation, the potential of real estate industry is slowly dawning upon people who are now taking up real estate training courses to enter this vast field of opportunities.
What are the real estate training courses about?
Real estate of course! Every country of the world has its set real estate laws and ordinances. These laws may vary largely from country to country, and also from city to city within in a country. This is one reason why it is important for a real estate professional to not only become aware of, but also have a deep insight into his region’s property laws and regulations. The real estate training courses consist of a series of classes or lectures which cover anything and everything about real estate in your region. The courses are designed, handled and delivered by the area’s real estate experts with vast experience of the local property market. The most common things covered in the property training are the property laws governing your area’s real estate industry, your responsibilities as a real estate agent, and the types of real estate present in your zone of operation. The courses are also designed to hone your buying and selling skills as a property agent.
Where are the real estate training courses available?
Probably not far from you. These courses are gaining popularity around the world and many established property companies and agencies have taken this initiative. Not only established real estate companies, but also experienced property professionals have started educationg people about the property business and its ethics with a special focus on the latest real estate trends of their own region’s property industry. So it’s very probable that after a brief search, you’ll be able to find a property company, agency or individual offering this course near your house or somewhere else in your city. And if you don’t, there are numerous real estate training courses available online in which anyone can enroll with ease. All it takes is a little online search and you’ll come across innumerable options. Most people consider online course more convenient than the classroom study as you can study at your convenience without having to rush for taking classes. It saves you the time and hassle of the traditional classroom study. Many online universities and institutions have even started bachelor and master degree programs in real estate development and management.
When can you enroll for the course? How long does it take to complete?
It depends on various factors. Your choice between online and classroom study, the mode of training, and the trainer’s discretion, all these factors come into play. The best way to find an answer to this question is to visit the trainer in person if it’s an offline (classroom) course, or to visit the website of the trainer if it’s an online course. The websites of educational institutions bear all the details of the courses they offer including the course objective, outline, duration, and choice. One trainer may offer more than one property training course at a time designed for different individuals as per their requirements, suitability and market exposure.
Why should you take this course?
Well, we’ve already discussed it in the 1st answer. One definite answer to this question is that the property market is still booming when the other industries appear to be falling down in the current financial recession. As the industry is expanding, there’s more and more room for real estate professionals in it. Taking a real estate training course can help you make a career in this booming sector and excel professionally.
Daniel Marshel is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of hands on experience of working in Dubai property market. He has helped thousands of his clients to buy property in Dubai. He is a trusted name in getting real estate for rent among property finders. Daniel is well aware of the latest trends in property for sale in Dubai, UAE. His firm Better Homes offers online Dubai property listings, property management and property investment services
It is safe to say that you are looking to accumulate cash through real estate speculating? Provided that you are, you are not apart from everyone else. Notwithstanding, real estate speculating is an unreliable business. There are some real estate investors who are notable, while others are not. That is why it is prescribed that you do your own exploration or sign up to take a real estate transaction course or class. Concerning sitting down for a bit to thoroughly analyze real estate contributing, there are a considerable number of confident real estate investors who ponder why they ought to plague. A significant number of gather that acquiring real estate lands, repairing them then afterward leasing or offering them isn’t a confused course of action, but there is additional to being a real estate investor beyond unequivocally putting a buy give for a property and doing a few repairs.
By sitting down for a bit too in fact pick up about real estate speculating, you are likely to end up being a notable real estate investor. One of the explanations why examination builds your possibilities of seeing achievement and benefits is for the reason that there are numerous real estate speculating tips over there, unequivocal holding up to be found and utilized. What a considerable number of do not realize that is a large number of real estate contributing tips, which incorporate both rules and regulations, are created by noteworthy real estate gurus; those who have viewed benefits themselves. Getting your informative content from an ahead of the game, demonstrated real estate guru is your most fit risk of victory. This is being as how the qualified data or tips that they give you are appropriate, as they have regularly attempted them out direct. For that explanation, you could prefer to search for real estate books or real estate courses that are composed or being accommodated by efficacious real estate investors.
As a real estate speculator, you have the choice to repair an obtained property then after that resell it or come to be a proprietor. A large number of real estate courses and books blanket both real estate backing ways, and blueprint the shots of accomplishment with every. As a real estate guru, you are your particular jefe; accordingly, you are equipped to settle on your particular choice, in respect to what sort of contributing you could would give anything to do, but seeing qualified information on past gurus and their progress may give you great brainstorms; plans that would be able to help you end up being an auspicious real estate speculator. In short, depending on if you are not kidding in regards to coming to be a real estate investor, you will prefer to take a real estate contribution course or buy an accumulation of your particular real estate speculating books. With regards to ending up being an on track real estate guru, exploration could not venture to be underlined on enough.
There are a lot of differing opinions about the best time to purchase a home. The National Association of Realtors states that the majority of homes are bought and sold between April and July.
In the late spring, families are preparing for the end of the school year and summer vacation. A lot of homeowners put their property on the market during the spring and summer months because they don’t want to move during the school year. Most sellers don’t want to move during the colder months when they may have to deal with autumn and winter storms.
Late April and through the summer are the times you’re more likely to find a home that suits your criteria and your budget when there’s an abundance of homes for sale. Some homeowners want to make improvements on their property before they put it on the market and take advantage of holiday sales to purchase what they need to spruce up their home and make it more attractive to buyers.
Data shows that homes that are listed in the spring have a higher sales rate, and a buyer is more likely to pay your asking price. A lot of potential buyers have gotten tax refunds and have funds for a down payment. In some cases, you can find homes within your budget between the Thanksgiving and Christmas holidays. Homes that are listed in November and December usually have price reductions because they didn’t sell at the buyer’s asking price earlier in the year.
A good tip for house hunters is to make an offer on a home in January. After the Christmas holidays, most people aren’t actively searching for a new home. Most sellers are hesitant to list their homes in January. Due to inclement weather and the fact that a lot of potential buyers aren’t actively looking for a house, most homes don’t show very well. Since there’s less competition for homes, a seller is more likely to accept your offer.
Another good time to buy a home is when it’s more financially sound for you to own rather than rent. You can make a comparison with a rental property and home for sale with similar features and in the same price range. Divide the asking price of the home for sale by the rent for one year of the other home.
The best time to buy a home is when you’re financially stable. When your debt to income ratio is under control and if you’re free of debt, you may start thinking about buying a home. It helps if you can get pre-approved by a lender when you begin searching the real estate market. You should put money aside for a down payment as early as possible when you decide to buy a home. Ideally, a 20 percent down payment is preferable, but some lenders will approve you for a down payment of 10 percent.
Owning rental property is a very great way to supplement your earnings or maybe become your primary income source. However, many home owners live countless miles far from their rental properties, along with a property management company becomes by far the most practical solution to ensure rents are collected, the home is maintained properly, potential tenants are screened and the rest of the tasks of operating a client’s property.
However, as almost every other industry, you will find property management businesses that place their responsibilities very seriously as well as others that make the most of their customers and browse through the motions of managing their home. So how could you ensure that you work with the previous and steer clear of the second?
Here are a few suggestions on things to look for inside a property management company:
Keep in mind that this can be a business arrangement –
This ought to be uppermost in your head while you interview different companies. You are searching for an outfit which has experience, offers their services at reasonable rates and manages their affairs inside a responsible manner. This really is your home and ultimately your responsibility. Be sure to select a property management company that instills confidence.
Inquire about their fees –
Usually do not let price become your single-largest consideration. It really is reasonable to anticipate the better companies will charge more for his or her services. They may be probably offering more accountability and performing a more thorough job. Just be sure you will find the management fees contained in any contracts.
Request a listing of another properties they manage –
An expert property management company will gladly provide a listing of the properties they manage. Visit a selection of their clients’ properties, get free from your vehicle and appear around to ensure they manage these properties in addition to they promise they actually do.
Ask about the way they market vacancies –
Vacancies are a part of owning investment property. Residential and commercial tenants appear and disappear, however the time that it takes to draw in and vet a completely new one can create a big difference within your main point here. Choose a property management company having a strong online presence to market and promote your property to help keep vacancies as low as possible.
Regular income and expense reports –
Again, your rental properties are the business so ensure that you as well as your company treat your earnings properties being a business with regular income and expense reports. These reports are a great business tool for tracking expenses, spotting market trends and identifying chances to spend less and improve your income.
Each one of these considerations and much more are extremely good methods to separate the wheat from your chaff with regards to professional property management companies. Whether you reside countless miles away, or perhaps in exactly the same locality and would prefer to not manage your home yourself, retain a home management company which has experience managing commercial and residential property within the Louisville area, and provides custom management intends to satisfy the unique needs of the situation.
For more information about property management company,simply visit our website.
The economy of any country is dependent upon every of its sector to a great extent. One of such sectors is real estate. It is considered as among the biggest drivers of the economic growth in a country. In India, real estate has been placed as the second-employment generating sector after agriculture. Not only it has been contributing to a high level of employment, it has also been responsible for stimulating demand in various industries such as steel, cement, brick, paint, consumer durables, building materials and so forth. Let’s have a look at some of the recent developments in the Indian real estate sector:
The Dark Days
The real estate industry in India has been experiencing various ups and downs since 2005. As a result of the implementation of FDI (Foreign Direct Investment) in the sector, all the investment and developmental activities experienced a boom. It was followed by the entry of domestic companies along with the arrival of big foreign players including development companies, pension funds and private equity funds that were lured by high level of ROIs. However, by the mid of 2008, when the world was facing a drastic economic slowdown, its results were visible in the Indian real estate sector. Consequently, there was a drastic decline in the FDI inflow to the industry and what had emerged as one of the favorable markets for foreign investors underwent a major downturn.
The Days of Transition
Amid the recession, various organizations and platforms have been trying to come up with different ways to bolster the real estate sector in India. One of such revolutionary platforms is Bidding house. It has arrived to provide properties at a cost-effective rate at the time when the sector is undergoing through severe recession and inflation.
It can amaze anyone that how can any organization provide properties at economical rates during such adverse timings of inflation. However, Bidding house has come up with an innovative process to cut down costs in various types of available properties. In order to provide finest deals, it has partnered with various big players in the market, including DLF, Adani, TATA, and Lotus Greens among others. As an effective alternative, Bidding house has come up with a method in which it would purchase a multiple number of properties from its partners in a lot system. Following the process, all the properties will be made available to users at unmatchable prices.
Bidding house is not only for buyers, but, sellers, brokers and real estate agents will also be provided an exposure to a wide base of customers and audience all around the country. Hence, anyone can reap a broad range of benefits with the use of just a single platform.
The real estate sector may have been going through a phase of downfall, however, there is a platform which has arrived with a goal to meet all the property requirements of every user in India.
With Bidding house, all the cash buyers, investors and first time buyers can easily purchase the property of their dreams and carry out their various real estate process.
If you are new to investing in real estate one of the key skills that you need to develop quickly is spotting an opportunity before it passes you by. Through being able to recognise an opportunity when you see one, you will be able to make wiser investments that are able to benefit you over the long term and should see you gain returns in a very short period of time.
Here we will take a look at a few tips you should follow to make sure you stay ahead of the curve and put your money in the right places.
Look At Historical Prices
Your aim with real estate is always going to be to buy as low as possible, so it is a good idea to have a look at the historical trends of an area you are considering investing in. This way you will have an idea about what you should be expecting to pay and will thus be able to spot a bargain.
In particular, you want to be aware of how much a property can sell when the market is at its peak, so you can get a good idea of how much profit there is to be made and how long you will need to wait until you can achieve that price again.
Analyse Profit and Risk
Never go into an investment opportunity without having first analysed the risk that is involved and comparing it to the potential profit that can be made. Ensure that any building you purchase has been thoroughly examined and you know about any issues so that you can account for them in your budget.
You should always have an estimated profit figure in mind whenever you make a purchase and you should know exactly what you need to do to achieve that level of profit before you make an investment.
Ideally you want to be able to get as much return on your investment for as little work on your side as possible. As such, you should identify buildings that won’t require much management on your part and also, if possible, don’t require much work to bring up to the right standard.
This will allow you more time to focus on other opportunities, in addition to ensuring that the building that you purchase doesn’t end up becoming both a time and money sink that ends up costing far more than you bargained for.
You should always be informed about the property market in every location in which you invest. Losing track of the investment and the state of the market is a quick way towards making mistakes with your purchases and failing to identify the best times to sell.
Furthermore, you should keep your eyes and ears open for any new development projects in your key areas of investment and try to get on board as early as possible. New developments usually ensure a high return, so do your due diligence and make sure everything is above board.
The Phoenix residential real estate market represents a great opportunity to individuals, families, and investors who are weary about the stock market and are realizing that their investment portfolios are too exposed to fluctuations in Wall Street. By now, the reality has sunk in with most people – the stock market’s decline has hit 401K and other retirement investments hard. As a result, this is a critical time to for individuals, families, and investors to rethink diversification of their portfolios again. Portfolios need to be more highly diversified than ever before.
And it’s time to rethink real estate as one component of your diversification in the future in addition to stocks, bonds, commodities, international investment, and low-risk savings instruments, to name a few.
Wall Street, Main Street, and My Street, and Real Estate
There is no doubt that the goings-on in the real estate industry are intermingled with the market challenges that Wall Street is facing, which in turn impacts Main Street and “My Street.” But the issues with real estate largely emanated from the many corporations that make up Wall Street combined with lack of government oversight and inaction. Lack of personal discretion also contributed to the problem.
Having said that, here is why real estate should be a component in your investment portfolio once again, and why the Phoenix real estate market is an excellent choice for investment to help you diversify that portfolio.
First, due to the wave of foreclosure-related properties, prices have declined to 2004 and even 2003 pricing levels. This is pricing that is pre-run up. Though there is a risk that prices may drop further, the extent of a further decline may be limited in the short term while the long term outlook gradually gets stronger.
Second, real estate can prove to be a more reliable investment in a normal market environment. Prior to the run-up in home valuations in the second half of 2004 through 2005, annual home appreciation in the Phoenix residential real estate market averaged 5%-6% . Playing the long game as investors should, holding a property for 5-20 years could yield a solid return.
Long term is key here. The investor has to be committed to a lower but steady return on their investment when it comes to real estate. The Phoenix housing market will not likely experience a meteoric rise in valuations like it did again. That’s not to say that there won’t be some opportunities to turn properties fast (whether through acquisition at a foreclosure auction or wholesale, or a flip), but this model will have the high risk that most investors will and should shy away from.
One note here. At least in the Phoenix area, investors have to weigh the merits of investments in homes and real estate by several components to get a true picture of the return on a property. These factors are growth in appreciation, rental income and offsets, tax benefits, and equity paydown and buildup.
Third, real estate is real. You can see it. You can touch it. You can check up on it (if you buy locally). And it will always hold some intrinsic value no matter what happens. If you have a home in Chandler, it is easy to get across the Phoenix area, to check up on an investment property in Glendale. Or, perhaps the investment property you choose is right next door to your home in Tempe.
Fourth, under certain circumstances, real estate taxation on capital gains growth can be minimal. The same cannot be said of many other investment vehicles.
Fifth, an investor has much more control in determining the value of the property. Smart improvements and renovations combined with effective property management can increase the value of the property substantially.
Sixth, the Phoenix area continues to grow. The Valley saw a 2.8% increase in the number of residents here last year. This trend will continue as Phoenix and surrounding areas are perceived as a stable, optimum climate to live and to work. With the decline in real estate prices, this perception will also be reinforced by a sense that Phoenix and surrounding areas are once again affordable.
Finally, real estate can serve a dual investment/personal objective. For instance, an investment in real estate can serve as a later gift for children. Or, it can be utilized as a sort of savings plan for children’s college tuition as a complement to 529s and Coverdell plans. The investment could be a retirement property for later in life. Real estate investments can also be used to create income streams to live off of (when rents and equity buildup eventually turn the property cash-flow positive).
There are numerous reasons to invest in real estate even beyond this list.
Real Estate Has A Role to Play in Your Investment Portfolio
The difficult truth about the stock market is that over the past eight years, the U.S. economy has seen two major disruptions or recessions that were severe enough to have rippling effects for all Americans as seen by the decline in 401K and other retirement savings values. As a result, further diversification of investment portfolios is needed across many different asset classes with a regional focus as well.
Real estate should be one of those classes. Given real estate has seen real substantial pricing declines over the last three years to levels seen before the run-up period, one has to consider that there are real deals in the marketplace for real estate. Coupled with the right long-term outlook and commitment to investment fundamentals, real estate can have a more effectual, countervailing purpose in investment portfolios that can help Americans better weather substantial market disruptions in the future. For investors looking for specific markets that may be worthwhile to investigate, real estate in the Phoenix area is a compelling choice.
Real estate training is needed for the people who need to become a successful real estate broker. It helps them to find out about real estate business. Real estate business requires some time, some basic knowledge of the business and skill to perform all transactions. Real estate business will be one of the good carriers for a tough working person. Real estate coaching suggests all the ways to achieve their goals.
License is the basic obligation to become a real estate agent. Even it is an essential thing to conduct real estate business. Real estate Web business is the best option to join real estate business. Some states provide online coaching courses which will help you to finish pre-license requirements. Before joining real estate businessmen should satisfy some pre-license requirements. They should; be of about 19 years, be managed a proctored examination, have high school diploma or some identical to it, pass a state examination, have completed a least approved course.
Usually real estate coaching gives some guidelines to grasp some real estate basics. They can easily find out about ownership transfer, real estate law and math with some help from real estate coaching. They’re taught how to deal to with real estate transactions during their course. Real estate training allows them to understand the tricks of the real estate contracts. Folk who want to join some state authorised courses should have initial license.
Anyone could be a successful real estate agent after completing real estate coaching. They can run a successful business only if they have great professional habits, good salesmanship and the enthusiasm to learn lots more about real estate. Real estate business requires great working talent.
Folks can find out about real estate business with some related books. They can also join some web courses that supply information via Net. Today several folks are earning in real estate business. Real estate brokers should be kind, informed, efficient as well as dependable. They should know the talent how to attract more purchasers. They can also take some proposal from the experienced real estate agents.
Real estate business may be wonderful opportunity for investing money but only thing that it needs -real estate coaching.
Did you ever buy a cheap real estate investing course? This makes me REALLY mad, real estate investors. I got myself all frustrated and angry today over nothing. I must have wasted a good two hours of productive time thinking about this, and I decided to see what you thought about cheap real estate investing courses.
Here’s why I’m so mad…I’m starting to see 5 dollar haircuts EVERYWHERE! Oh wait, you don’t know what I mean by 5 dollar haircuts, do you? Well, listen to this quick story and I guarantee you’ll never forget this lesson. Once upon a time, there was a very successful barber who had a thriving business. He was well-known and respected in his community. He was the “go to guy” to get your hair cut, and was loved by his customers because he gave top-notch haircuts for only 10 dollars.
He gave extraordinary value for a fair price, and was truly giving his customers MORE than they paid for. And they kept coming back, month in and month out- sometimes for years and years. Well, to make a long story short…one day the barber got into a disagreement with one of his customers (who happened to be a pretty rich businessman). They disagreed over what was more important- price or quality.
The customer was SO mad that he decided to open up a brand-new barbershop RIGHT NEXT DOOR and to make every attempt to put this barber out of business. He bought the storefront and some barber chairs and hired some barbers. He put up a HUGE sign in his window that said: “We Give 5 Dollar Haircuts.” Within a few short weeks, almost all of the barber’s customers were now going to his new competitor’s place of business in order to save money.
There was no way he could charge only 5 dollars per haircut and still remain in business, but he was determined not to go out of business and to continue delivering the same value his customers had loved him for. So he came up with a plan to fight back. He decided that he would also put a big sign in his window that would counter what his ‘competitor’ was trying to do to him.
Within a SINGLE WEEK the barber had all of his customers back, getting their haircuts from him once again. All because of that one sign he hung in the window. Can you guess what the sign said? “We FIX 5 Dollar Haircuts”
My friend, here’s how that relates to us here today on our quest to become ever more successful as real estate investors. I see all sorts of websites and seminars and workshops popping up all over the place all selling cheap garbage products that are supposed to make you a successful investor in real estate overnight. It almost seems like anyone who has bought one of those $39 infomercial courses on television can suddenly become an expert with just a thousand bucks in their pocket by hiring a ghostwriter to put together an eBook or some worthless rehashed junk supposedly on how to invest in real estate.
The problem with all these cheap real estate investing courses isn’t the entrepreneurial spirit…the problem is that most of these ‘products’ usually don’t have any really valuable content. And even if they do you can get it at no cost with a little time just by combing through real estate investing forums online, or going to your free public library. For the most part, it’s all just generic fluff, or worse complete nonsense.
That’s what ticks me off. This stuff in the wrong hands can be DANGEROUS. How can someone who is just getting started in the business (or not even done one deal) tell you how to make money in real estate investing? That’s right, you’re much more likely to LOSE MONEY.
If you want to get more involved in real estate investing, then you might consider that you don’t need to buy cheap real estate investing courses. What you may need is to work with and learn from experts who know what they are doing, who have proven, high-caliber systems that actually make a difference in whether or not you succeed with your investments.
I’m just wondering…how do YOU feel about all these “cookie cutter” cheapo products out there? Do you believe as I do that they have little value? Honestly, the only value I see them having is that they make the people who really DO pour themselves into their system or product…look that MUCH BETTER.
If you’re serious about making money NOW in commercial real estate, while building long-term wealth, all by learning how to re-position yourself to achieve INFINITE returns then you must attend our next live educational online webinar with America’s #1 Real Estate Network. Register now as a guest of Danny Welsh and unlock the secrets to 6-figure pay-days and awesome monthly cash flow.
Go here to learn how to Get Rich Certain even if you have to begin part time.
An entrepreneur, real estate investor, marketing consultant, copywriter, and published author, Danny Welsh is passionate about two things: empowering real estate investors and entrepreneurs and helping other business owners get better results.
Retirees 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.
The real estate brokerage business in Ethiopia is not as well developed as in other countries. You dont see large and established real estate brokerage companies so common in western countries. Here, buyers and sellers for Ethiopia homes rely on local agents, commonly known as Delalas. For the most part, these are traditional agents with no formal training in real estate but who basically mediate between buyers and sellers for Ethiopia real estate. Through word of mouth or their special network, these agents know the areas they operate in very well.
When you want to sell or buy Ethiopia homes, you just call one of these agents and tell them of your intention. These agents, in turn, inform their associates who would help them find prospective buyers or sellers as the case may be. In many cases, the Delalas work in groups of two or three and split their commission according to who was the principal negotiator and who did the most work.
A great deal of negotiation is involved in buying Ethiopia homes. Asking prices can be as high as 50% more than the final sale prices. Negotiations can take weeks, and even months in some cases. Expect to walk out of a negotiation a few times. In many cases, the Delalas play critical role in convincing both sellers and buyers to come to terms.
In general, Delalas do not help customers in completing the legal paperwork needed to complete the Ethiopia Real Estate transaction. This must be done by the buyer and seller themselves and may take several months. It is very important that buyers check the authenticity of seller documents before buying real estate in Ethiopia. Otherwise, they can waste crucial time and/or money in such endeavor. For a small fee, people who are less skilled with the Ethiopian bureaucracy may seek the help of legal assistants locally called Guday Asfetsami.
Home mortgages are hard to come by in Ethiopia. Most Ethiopia real estate transactions are conducted on cash basis. Mortgage financing may be obtained in some cases, but primarily for new homes built by developers. These companies negotiate financing terms with local banks in advance for all of their clients. Basically, they arrange group deals for their clients those who can put the required down payment. Down payments vary from 20 to 40%. Although most mortgages are for 10-20 years in duration, some companies arrange mortgages for as long as 30 years. Interest rates are variable and depend on the prevailing interest rate fixed by the Ethiopian central bank.
It is estimated that there are about sixty local and six foreign real estate development operators in Ethiopia. Examples of local developers include Sunshine Real Estate, Ayat Real Estate, Gift Real Estate, and Ambassador Real Estate. A major problem with homes built by some of these companies is the time it takes to complete construction. In the past, some of these homes were completed many years past their due dates. And some Ethiopia homes never made it to completion.
So, who can buy homes in Ethiopia? Anyone can buy real estate in Ethiopia as long as he/she is an Ethiopian citizen, foreign national of Ethiopian origin, or has Ethiopian parents. To see the latest listing of residential and commercial properties for sale or rent, please visit sites such as Ezega Real Estate, which is the largest real estate portal in Ethiopia and lists hundreds of homes for sale and/or rent at any given time. Anyone can register and post properties there for sale or rent for free.
You would certainly not like the idea of waiting for a period of 3 years or even more to buy your own home. In that case, many prefer to go for resale property. Buying resale property has several advantages. Not only you would be able to get a ready made flat to reside but also several other advantages.
The Advantages of Buying Resale Property
You get the opportunity to shift to the house immediately. This would be highly helpful especially when you have to shift to a shelter within a short time.
Many a times, you might be paying huge amount of money as rent and your calculations show that in the long run buying a property would be more economic than continuing to engage huge sums of money as rent. So, to lookout for a home within a short notice, buying resale property is indeed a good idea.
If you are an individual who loves to be located at a prominent position, go for resale property options. You would find as they were built quite early, they are usually located at good locations, at the heart of the city. In contrast, the latest residential developments are usually found in the suburban regions.
Though buying resale property would be advantageous to many respect, but you need to be careful while buying one. Your resale property is old after all and hence, you need to be assured of the fact that the building is still tough and durable.
Important Checklist for Buying Resale Property
Before you enter the flat, engage some professionals to check the plumbing and electrical works. Inspect whether the repair has been properly done or not. Try not to buy a property which is more than 10 years of age.
Your property must definitely be in good shape so that you do not have to spend much on its maintenance.
Check all the legal documents. The title of the property must be the name of the seller. Check whether all the duties and the dues are paid.
Inspect whether the property you are buying has any illegal constructions or not. In that case, you may get in touch of a lawyer or a civil engineer to learn about it.
Avoid buying resale property for investment purpose. If you are purchasing the property to expect huge returns, this won’t be a good business strategy. Purchasing resale flats is worthwhile only if you have plans to shift to the place immediately.
The so-called commercial real estate (Business Real Estate), real estate products for commercial purposes in accordance with the end use of the real estate category, this type of real estate product development purposes that is not used for living or another, but for commercial use. A wide range of commercial real estate, including shopping malls (shopping centres, etc.), the professional market, entertainment, recreational places and all kinds of consumer sites, commercial property development and management. In comparison with the residential development, commercial real estate development project may have a higher return on investment and appreciation potential, but may also be lurking at greater risk. Pursue large-scale development, investment, return on commercial real estate development model, is the amplification of risk.
Commercial real estate development and general real estate development the biggest difference lies in the commercial real estate need to be considered a commercial operation. The healthy development of the commercial real estate market, you need a rational choice for investors, but also requires the development of rational development and commercial agent, commercial management companies mature operation to ensure By the large number of cases in the domestic commercial real estate development, we find that most development projects fail for the lack of commercial operation or prematurely. The risk of a variety of commercial real estate development, the most difficult to deal with the most prominent is the risk of commercial operation. However, commercial and real estate often or “mismatch”, commercial real estate developers do not understand the commercial phenomenon of widespread commercial real estate investment project risk is great in this situation. Should co-ordinate the management of seeking to eliminate hidden dangers and ways to defuse the risk of commercial real estate. Commercial real estate development, we must guard against the risk of commercial operation can consider the following countermeasures strategy.
Commercial real estate development, the pursuit of present value, but the appreciation of the future, it is at this point to make it different from the usual sense of the real estate development. Commercial real estate development operation in accordance with the investment rely on the commercial operations to the value-added concept, not only prior to orientation, planning, positioning several stages in order to break ground, but also after the completion of construction works through a series of commercial operation of the real estate to obtain appreciation . Completion of the construction project is the new phase of commercial real estate development, not the end, makes the real estate business development and operation through the late to get appreciation, and further expand the scale of the development of the surrounding residential and other building facilities, developers and investors bring greater benefits. Real estate development, the lack of commercial development, or real estate development and commercial development and do not take the sector, this fault type of commercial real estate development is not only difficult to make real estate to get appreciation. The same time, because without the support of the commercial development of real estate development itself, it is difficult to be successful. Once developed, suffered losses, not just developers, investors and operators, and even spread to the financial institutions, and the formation of a difficult to solve the debt chain.