Category Archives: Real Estate Investment

The Benefits of Property Investment

Are you looking to invest in property? Due to their high demand nature, this could be an investment decision that produces great financial rewards. Beyond the monetary gain, there are also a variety of added advantages including an increase in personal wealth and your investment portfolio. How else can you benefit from investing? Read on to find out more.

Property over other investment options

Unlike other investment options, investing in property is more secure and subject to less fluctuation than investing in shares on the stock market. Shares can quickly lose value, depreciating to significantly less than the purchase price. When this happens you have effectively lost money, however those that invest in the stock market are generally aware of such a risk.

Property investments are usually of lower risk and where you buy a property in a good location, it may significantly increase in value, leading to high profits. Whilst stock may not be as expensive to buy, you can still purchase smaller properties, before using the equity in your existing properties to buy bigger and increase your wealth. As an investor, getting a loan can be easier and you may be entitled to borrow 90% to 95% LVR! This means you can continue to invest and continue to make good returns.

What should I invest in?

Whether it’s a duplex, unit or studio apartment, starting off investing in these properties types is a good start. Without taking on a large financial responsibility and burdensome mortgage, you can still receive high yields and build your investing experience before purchasing a larger property type. Once you have experience and funds, you can then move onto investing in larger homes or take on more ambitious projects such as converted hotels or display home purchases.

And it doesn’t end there! You can invest with other people by pooling your funds together, use a trust as a vehicle to purchase or enter into a property syndicate. There are opportunities to invest in residential or commercial property and the list goes on!

High returns

There is a great potential for high returns when investing in property. Where you ensure that you research the area you are buying in, plan, save and budget as well as seek advice from a financial advisor, you are likely to make a decision which will produce significant monetary benefits.

Property prices are going up, the housing market is tight and houses are selling quicker than ever. A good property in a prime location will usually increase significantly. Why leave your money in the bank account to sit there, when it can grow in an investment property? Although there are associated costs, most of these can be covered by rental income and careful financial planning.

Rental income alone is a very durable income source and can often be more than the amount that you are required to pay on your mortgage. This means that any surplus left over can be enjoyed, or go towards additional costs of property ownership.

Investors should engage in positive gearing, so that the rental income on their property covers the cost of all related expenses including mortgage repayments and other costs. Where it doesn’t, this is called negative gearing. However, any losses made on the property are tax deductible. Knowing how much you can seek to gain by investing, how can you use your investments to further invest? Read on to find out.

How can I increase my investment portfolio?

Once you buy something, whether its small or large, it will be easier for you to get finance from major banks. Unlike ordinary loans, investors can borrow 90% to 95% LVR, depending on their circumstances. Although Lenders Mortgage Insurance (LMI) applies, this can often be included in the loan amount.

Some investors can also use the equity in existing properties so that they don’t have to offer any deposit! This way you can secure more finance and go on to purchase more property. Once you have invested and made prompt mortgage repayments, banks will see that you are a low risk borrower and a more likely to lend. You can then begin increasing your investment portfolio!

Get the right advice to receive maximum benefits

Speaking to the right people can help ensure that you make an investment decision which produces the best financial results. Buying in the right area when the market is good and making sure that you have the income to cover the repayments and costs, will minimise the financial pressure involved and guarantee a better return.


Phoenix Investment Real Estate-For Better Property Management

Investing in realty will pay wealthy dividends within the long-standing time, providing you have got the support of experienced realty professionals. realty investments will sway be a superb supply of high yielding returns. For that you just ought to analyze the geographical space, land appreciation and a lot of importantly follow the market behavior.  There are several different factors that verify a successful realty investment. several on-line realty specialists like Phoenix investment realty will offer their insights for a flourishing estate deal. they’re competent and perceive your necessities and assist you in locating the crème de la crème components of the town/city.

Consulting with Phoenix investment realty is an enormous bonus, as they’re going to showcase all the attainable estates inside your budget and as per your tastes. If you’re shopping for realty as a tool of investment, these realty agents offer you with consistent tenants to confirm a well-maintained estate. These services additionally guarantee a nonstop flow of rent, that is usually a necessary financial advantage. Contacting a true estate agent who provides priceless experience in various aspects of property management, leasing and estate development, can sway be an honest call in property investing.

It is impracticable to extract real info all the time concerning the simplest estate deals and concerning the simplest bargains going around within the market. A Phoenix investment realty closely observes these unbelievable deals and notifies you beforehand, so you get the simplest come for your cash. Their professionals manage your prized assets diligently. The vast expertise within the varied realty services facilitate to measure times of mortgage crisis and its effects on the property price. as a result of this, they’re within the best position to guide you concerning the acquisition of the correct assets.

Building a relationship with an experienced management firm like Phoenix investment realty ensures that you just get the simplest location to line up your dream property. With a team of specialists, these companies offer customized solutions to all or any your realty desires. These professionals have in-depth data in aspects like land coming up with, web site acquisition, structural styles, entitlement and thus on. you would like to periodically enhance your properties to stay customers interests in renting/buying them. Inquisitive prospects should be completely examined. make sure that you just advertise your estate within the applicable medium thus on attract the optimum renter.

Regular rent assortment and inspecting the property is additionally counseled. ensuring that its value price does not get tarnished attributable to poor maintenance or any variety of neglect may be a should for any estate holder. Phoenix investment realty sees to it that you just don’t seem to be bothered concerning frantic night calls from tenants complaining concerning conditions and demanding repair works to be allotted. These firms provide an expert team of contractors to handle such repairs and complaints on estates. With the net, it’s attainable for purchasers and investors to approach these services on-line.

Luxury Real Estate Investment Remains The Best Option

Looking for a safe place to invest your savings? Then maybe you should think about luxury real estate investment. You’ve seen the headlines. Luxury homes selling for record-breaking prices. Luxury property values appreciating even while other properties remain unsold. The fact is, that even given the current poor economic climate, luxury home investment remains a lucrative option for anyone looking to make money with their savings. Now why is that?

One of the main reasons is that luxury property markets benefit from insulation from problems affecting other markets. While a poor economy might stifle other sectors of realty, these problems do not affect the wealthy in the same way. Another reason is that foreign investment is a big factor in luxury property, as the US remains one of the most desirable countries in the world in which to own a second home, thanks to its quality of life and education services, amongst others. The result is that foreign investment often helps to keep luxury real estate markets in good shape, even if the other markets are struggling.

So how can you prosper in luxury real estate investment? A real estate consultant will tell you that while there’s no strict formula you can follow to make certain your investments pay off, there are some basic rules to follow that will give you a very big chance of success.

Firstly, you need to understand the meaning of luxury on a personal level. You need to recognize the kinds of luxury homes that are going to appeal to buyers. For various reasons, the media often define luxury homes as any property that costs over $1 million, but this is just simplifying things. Luxury could mean a desirable neighborhood, ease of access to popular destinations, or those little extras such as a Jacuzzi, a tennis court or a trophy room. To be an educated buyer, you need to learn to identify the things people want.

When we buy homes, especially luxury homes, we need to be hands on in their real estate transactions, so they can increase their flexibility and the speed of their purchases when buying luxury property. In many cases with luxury real estate, it’s necessary for buyers to move quickly, or strike while the iron is hot, so to speak. This is because luxury homes attract big spenders with lots of disposable cash, or at least the ability to easily borrow the money they need. Luxury property is also advertised nationwide rather than just locally, so it nearly always attracts much more interest.

Also, it pays to keep an open mind about luxury real estate investment. It used to be that, when some mentioned luxury real estate, people would immediately think of the east coast or the west coast. Not anymore. Nowadays, there are areas in many states that are considered to be highly desirable, providing many more opportunities for investors like you. Learn what makes a desirable location, and realize that these are often found in the most unexpected of places.

Protecting Time and Money on Your Real Estate Investment

We have all heard the timeworn phrase, “It takes money to make money,” and even though it isn’t necessarily true in real estate — so long as you have the right partners — spending a little money certainly doesn’t hurt, especially if you want to protect your residential real estate investment.

Here are a couple of the key ways we protect our investments are through inspections and by purchasing home warranties. On the purchase of a property, you may spend a couple hundred dollars extra on a transaction by buying a home warranty.

But if you go to sell the property and they do an inspection and the roof is damaged, it’s going to cost you between $8,000 and $10,000. If you have a home warranty in place, all you have to do is report the damage, pay the premium, and get that new roof in place.

Knowing where to protect yourself in order to avoid unexpected costs is incredibly important. We have seen a lot of people who neglected to take the proper precautions get hurt.

For example, recently we purchased a house. We had to react really fast, because it was priced incredibly low. It was one of those instances where we took a chance on buying it, because we were buying it at around 40 cents on the dollar.

We knew after we bought it that the property had major roof damage. Luckily, we bought a home warranty. Although we bought the house that cheap, we were able to get the home warranty and save close to $13,000. By protecting your invest when you purchase properties you’re able to save a lot of money.

Another investment you may have to make in your property is by bringing it up to FHA loan standards. If you’ve rehabbed a house and you’re selling to retail buyers, you may have to come out of pocket for things like appliances. In cases like these, it’s worth spending a little bit extra so that everything can go through smoothly.

You may also want to have your own appraisal done. There have been many times that we have seen appraisers go out to a property and it isn’t ready. If you spend an extra couple hundred dollars just to make sure the appraisal matches the selling price and that the house is ready to go, in the long run you will save time and money.

And that’s what it comes down to: Time is money. You want to make sure that you complete the right processes so that you’re able to exit your investment and get your money back in your pocket.

There’s something called the internal rate of return and we watch that carefully as we are very concerned about our investors. We want to make sure that we turn over their money over and over throughout a year or throughout that cycle.

One of the ways we’re able to do that is by making sure that all of these things are taking place and making sure we’re not wasting time. We’re not going to waste time and we’re not going to lose money or spend additional money that we could have saved by having these insurances in place.

That’s the main thing: Protect your time and protect your money. If you protect both, then you will be taking care of your investors or assets as you continue to build your business.

One deal to financial freedom? Luis Roque invites you to get access to ask the real estate experts who are mentors to millionaires today! Attend the next free commercial real estate webinar with some of the nation’s leading real estate experts: Real Deal Commercial Webinar.

Luis D. Roque has over 10 years of real estate and lending expertise working for the largest lending institutions in the U.S. Luis has also worked for investment companies as a consultant to oversee the investor relations, and residential real estate acquisitions departments achieving as many as 50 properties bought fixed and flipped for profit in a quarter. Luis is a managing partner of HIS Real Estate Network residential and commercial real estate buying group.

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