Investments in real estate are done in order to secure profits. Some carve out an entire career out of this, and some other indulge in real estate as a supplement to their income. Many investors put their money in real estate with the objective of retaining the ownership of the property and leasing or renting it out for commercial usage.
Whatever be the objective every property investor must perform few sets of activities as a checkpoint before taking the last leap.
Know your property
Visit the property you are planning to purchase during various times in a day or spread it over few days. This must be done because few things look different in different times of the day. A perfunctory glance at the property is not enough. You might miss few important things.
Hire an expert
Bring an expert to walk you through the deal. Take the expert to walk through the property. There’s a good chance that they know some of things that you might not even given a thought to. Also, they help you in vertical integration of the entire process. Closing a property deal involves a series of activities from finding a property to ensuring that the title is clear, from valuations to securing mortgage loans at an appropriate rate, from verifying if the property is damaged and repaired superficially to ensuring if the structure has been completely secured, from planning to execution – they know it best. Some of better experts also have the list of good properties in your area. So if you are looking to buy properties in London, hire the property experts in London.
Background of the property
Make it a point to have the local county office records searched to see if the property is clear of any liens, taxes and/or disputes. The information is always on the records for you to see. The expert you have hired will come handy in finding the right kind of information on the related property.
Going into the deal armed with all the knowledge and technical support would mean that you are in a better position to negotiate the deal and that investment in the property would earn you better rewards in times to come.
In a tattered real estate and housing market like the current one, choosing your neighborhood is more significant than ever.
Around five million Americans would be scouting for a house this year. They could the first time buyers scouting the Chicago or the California markets or a worker in the middle of his career relocation to Denver. The significant part is that they all would be contemplating the one of the most important decision of their life in times when no one is certain how low the prices would go before taking a halt.
If you would be relocating in a job, you do not have luxury to decide the region. But do have the discretion to decide where to live within that region. This decision of yours would decide whether or not your home turns out to be a good real estate and property investment.
There are signs that the current crisis could run deeper than all of the previous ones experienced. The statistics from the National Association of Realtors suggest the housing property prices witness their first year on year decline in 40 years in the year 2007. Prices are expected to fall further as the crisis deepens. The price fall may, well, continue into 2007.
But even in this crisis ridden atmosphere, some cities like Seattle, Austin, Texas and Wichita are witnessing a surge in their property prices. And even in cities which are hard hit, some neighborhoods are holding up their prices better than others.
Always remember that buying a home or a property is a street by street exercise. This particularly holds true in a weak market like the current one. In a strong market, buyers lap up properties on not very desirable locations and even on busy streets. But in a sliding market things turn around and change.
Anything could have been sold in the strong market sentiments of 2004 and 2005 but now its location… location… location more than ever.
Related info: Homeowner Loan
If there’s one thing that will decide the ROI on your property, it’s the location of your real estate purchase. Everything else is secondary and should be seen as value addition to your real estate investment.
The real estate prices in London are stable and moving up. But the valuations for properties in outlying areas lag behind than their counterparts in the central zone. The real estate properties lying near the areas services by the underground subway are seeing their valuations going up but the same cannot be said about areas not serviced by the underground subway.
The same phenomenon is holding true for United States. As a result of the sub-prime mess properties all over the US are going down. However areas which are serviced by good rapid transit systems are holding onto their prices against the rest of the areas where the property valuations have gone down considerably. However there’s the balancing catch. A property very near (too close) to the transit system is neither good. People always prefer to have quiet and peaceful places.
Maintaining the balance is as important as identifying the location. Everyone would like to have the police station in their area somewhere near by; but no one would like have their house or property to be located right under the police station’s nose. You don’t want the cops to breathe down your neck each time you come out of your house or office J
Location, as they say, holds the key to your valuations – In good times, as well as in bad times.
For most of the real estate investors, buyers and sellers who have decided to go the FSBO way (For Sale By Owner) the primary objective is to save on the payments of commissions to the real estate agents. With the commission hovering in the range of 4% -6%, this also makes a lot of economic sense.
The realtors and the real estate agents often argue that in order to generate interest in your property in a slow and recessionary markets like the current one, you would require their real estate agent’s services.
On the other hand the investors, sellers and buyers have the argument that the Internet has its own ways of generating potential leads for fsbo homes. Add to this that the ease with which the process can be learnt and the speed of communication between the stakeholders.
Some of the benefits are:
Because you are dealing directly with the owner of the home and that that owner of the home is dealing directly with the purchaser the communication turnaround time is fast and secured. The entire process objective is achieved faster than usual.
Saves Money in the form of commissions
Many buyers believe that the services of the realtor are free. But in actual the real estate agent or the realtor has already loaded his commission / charges in the sell price. The selling offer price that you have got is loaded one. Direct purchase would be minus the commission value.
Communicating directly with the owner is easy and less frustrating than dealing with the middleman. The negotiations are more efficient and effective. The process becomes easy and transparent.
Make sure you consult an appraiser to arrive at a proper valuation of your property and hire a lawyer who is expert is real estate to prepare for your property papers.
The real estate market is going through volatile and turbulent times. The Colorado real estate market is no exception to the trend. For the year closing Dec 2007, a 40% jump has been reported in the foreclosures. That’s around 40,000 in absolute terms. To the director of Colorado Division of Housing, this was a setback since the expectations were hovering around 30%. If you the take the base year as 2003, that’s a straight 190% increase in foreclosures.
On the other hand the foreclosure sales stand at around 25000 (in absolute figures). So, that’s a 45% YoY increase. With so much churning happening in the market, it’s a good time for a cash surplus investor to park his funds in real estate. The Breckenridge Colorado real estate for sale presents such an opportunity for smart investments into real estate property. If your investment horizon is long term then this is the time to go for the kill. Invest smart for a smart ROI.