10 Tips for Successful Real Estate Property Investment
by: Rhiannon Williamson
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% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%.
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% 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.
About The Author
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world.
|
FSBO Real Estate
FSBO Real Estate
by: Steve Gillman
Buying FSBO real estate, or houses for sale by owner, has its own particular problems and opportunities. Dealing with an uninformed seller who thought he knew enough to handle everything by himself can be frustrating, but it can also be very profitable if you are prepared. First you need to understand the FSBO seller.
People try to sell a house on their own for one primary reason: To save the sales commission. Unfortunately for them, they usually underestimate the cost and complexity of going it alone. They'll often get frustrated and tired of the process, and be ready to drop the price and be done with it. If you help them solve their problems, your reward can be a good price on a good investment. Just keep the following in mind:
1. A seller isn't an agent. You have to be more careful in what you say and ask. Avoid negative comments about the house. Like it or not, the truth is that it's difficult to...
FSBO Real Estate
Real estate > FSBO Real Estate
Chicago Real Estate: Is It Overheating?
Chicago Real Estate: Is It Overheating?
by: Nick Anderson
Chicago real estate is one of the greatest success stories of the recent boom in property prices. With low, low mortgage rates for Chicago home (http://www.bestchicagomortgage.com/mortgage-calc.html)
mortgage loans, demand for real estate is going through the roof as people rush to snap up great homes on the beautiful Chicago lakefront, as well as in Chicago's many attractive suburbs.
More than eight million people now reside in the Windy City. One of the few Midwest cities in the last decade to increase in population, Chicago may be well on its way to satiation. There are so few homes available that folks who want to buy Chicago real estate are getting in ahead of the crowd by purchasing pre-construction.
Many pre-construction opportunities are available in Chicago real estate.
Chicago Suburbs Real Estate Pre-Construction
In the Chicago suburb of Palos Hills,...
Chicago Real Estate: Is It Overheating?
Real estate > Chicago Real Estate: Is It Overheating?
Sell Your Real Estate Notes
Sell Your Real Estate Notes
by: Steve Gillman
People sell real estate notes to raise cash quickly. A real estate note is just the loan document created when you financed the sale of your house or investment property. It could be a mortgage note, or a land-contract or contract-for-sale. The point is that the buyer is making payments to you, and you want to cash in.
You can sell the entire contract, or just a certain number of payments if you want. The buyer of your property will have the same terms and payments. He'll just be making those payments to somebody else.
Selling real estate notes can be an intimidating process. You know you won't get the full face value for your note, but will there be other fees you have to pay too? How do you know if the buyer is reputable? What is a normal discount on a note? Here are some guidelines to follow:
1. No upfront fees. If they ask, go someplace else. You should be able to find many note buyers...
Sell Your Real Estate Notes
Real estate > Sell Your Real Estate Notes
Real Estate - Advertising Your Own Home
Real Estate - Advertising Your Own Home
by: Jay Bauder
"House and Lot For Sale! Direct Buyers Only!" -- These popular ads can be found everywhere, including the internet...
Many people rely on the internet to sell their property because it's a great way to advertise. There are a growing number of websites that allow posting of "for sale by owner" ads. These websites target buyers from all around the world. Internet ads are also being proven worthy of consideration because of their cost-effectiveness as compared to other forms of advertising.
Taking a sneak peak at lists of properties which are for sale by owners on the internet can help you gather indispensable information. You can also access handbooks and other sources of information that are available on the internet.
Every day, thousands of people become potential buyers of products and properties that are for sale by owners. They go through newspaper ads, banner ads, search...
Real Estate - Advertising Your Own Home
Real estate > Real Estate - Advertising Your Own Home
Multi-Level-Marketing: The Real Estate of the 21st Century
Multi-Level-Marketing: The Real Estate of the 21st Century
by: Sarah King
A single event, or series of events, leads many people to the depressing conclusion that they?re not where they want to be in life.
They?ve been stressed out and tired, their health has suffered, they?ve worked countless hours away from their family, yet they find themselves in mundane jobs with no scope, no recognition, living pay-day to pay-day with no further desire to succeed and no seemingly possible way out.
This realisation often leads to a period of uncertainty, frustration and fear as one searches for an opportunity that will satisfy their goals and desires, free up their time, secure their financial future and make them proud of who they are and where they?re at in life.
This article is geared towards those of you who?ve reached that point and find yourselves at a loss in terms of the next step.
Perhaps you?ve already invested in a few...
Real estate > Multi-Level-Marketing: The Real Estate of the 21st Century
Real Estate Market Conditions
Real Estate Market Conditions
by: Kim Polinsky
The winter season gives real estate agent/brokers a chance to sit back and evaluate the previous season-Yes? No! These days, the chance to sit back is merely a dream. Agents and Brokers must build their business with new market niches in order to stay on top of their field.
Yes, the ?bubble? has burst. Burst into a finely tuned, quickly burning engine that has grown to a new level of expertise and profits!! Real estate marketing IS changing, and the newer, inexperienced, hungry agent/broker is finding a level playing field on the new path of real estate.
Recently, the trade is encouraged by the fact that this year, unseasonably warm temperatures found across the nation are fueling not just tourism. The warm temperatures are attracting ready and willing buyers, matched with sellers willing to turn some profit.
Mountains in Colorado, beaches in California, the list goes on and on regarding...
Real estate > Real Estate Market Conditions
Real estate
This page loaded in 0.02201 seconds.