Find Property To Rent: August 2012

Monday, August 27, 2012

Buying Investment Property

Buying Investment Property

First a little story about buying investment property.

My wife and I stayed at a motel in Tucson for a week one winter. Our bill was for twice what it should have been, but since I already paid the correct amount in cash, I thought nothing of it. During our stay, we noticed that the lobby and swimming pool were unheated, and passed it off as frugality. A year later, however, when I read a news story about a new owner struggling to make the motel work, I realized what was really going on.

To prepare the motel for sale, the owner had been using the two most basic ways to inflate the appraised value: decrease expenses and increase reported income. Stopping repairs, turning down the heat, and quietly adding $100 in income to the books every day, might have increased the net income for the year by $45,000 more. With a .08 capitalization rate, that means the appraisal would come in $562,000 higher than it should have. Imagine the the poor guy who overpaid!

To avoid a mistake like this when buying investment property, you need to watch for tricks like these. You also need to understand the basics of appraising income property.

Valuation of income properties start with the capitalization rate, or "cap rate." When investors in an area expect a return of 8% on assets, the cap rate is .08. The net income before debt service is divided by this to arrive at the value of a property. This is expleained further in another article, but the primary point to remember is that every dollar of extra income shown will increase the appraised value by $12.50 with a cap rate of .08 (Or, for example, by $10, if the cap rate is .10).

<b>Avoid Dirty Tricks When Buying Investment Property</b>

When sellers of income properties increase the net income by honest means, the property should sell for more. However, there are many dishonest ways, both legal and fraudulent, that are sometimes used. Sellers of houses may cover foundation cracks with plaster, but the tricks used by sellers of income properties aren't about appearance. These tricks are about income and expenses.

One way income can be inflated, is by showing you the "pro forma," or projected income, instead of the actual rents collected. Demand the actual figures, and check to see that none of the apartments listed as occupied are actually vacant. See if any of the income is from one time events, like the sale of something.

The income from vending machines is a gray area. Many smart investors subtract this from the net income before applying the cap rate, then add back the value of the machines themselves. For example, if laundry machines make $6,000, that would add $75,000 to the appraised value (.08 cap rate), if you included it. However, since they are easily replaceable, adding the $10,000 replacement cost instead makes more sense.

The other important tricks sellers play involve hiding expenses. These can include paying for repairs off the books, or just avoiding necessary repairs for a year. This can dramatically increase the net income, meaning you pay more for the property. It also means you have less income than expected, and deferred maintenance to catch up on.

Ask for an accounting of all expenditures. If a number in an expense category is suspicious, replace it with your own best guess. Then re-figure the net income.

Look at each of the following, verifying the figures as much as possible, and substituting your own guesses if they are too suspect: vacancy rates, advertising, cleaning, maintenance, repairs, management fees, supplies, taxes, insurance, utilities, commissions, legal fees and any other expenses. Do your homework, and avoid seller's tricks when buying investment property.

Buy to Let Rental Property

Condotel Investments in the Philippines, Buy to Let rental properties are now being preferred to failing Pension Plans as more and more Filipinos and Overseas Property Investors look to the future and retirement.

20 Dollars a day for 6 years will buy you a Studio Condotel unit in the Philippines with a projected ROI through rentals of some 500 dollars per month after 3 years. With preconstruction property appreciating at some 20-30% per annum not only does the Real Estate Appreciation look good but the rental income is in excess of what many Pension Plans offer for the same or similar investment.

With many Overseas Filipinos and Offshore Property Investors looking to start saving for retirement, the Philippines with its comparative low cost of real estate yet high rates of Hotel Accommodations, make the Condotel investment an extremely attractive investment proposition.

Beth Collingz, International Marketing Director for PLC Global, a company specializing in Condo Hotel Sales and Investments in the Philippines for the Lancaster Brand of Condotels, said that many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate.

“Many of my clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Personally, I have always regarded Pension Plans as a glorified ‘Pyramid Scheme’. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”

This potential, high rates of rental returns from Condotel Investments, currently from 8% up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around like headless chickens looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement.

“We look at Condotels as pure investments. Not primarily as Real Estate. If you look at the Condo Hotel market as investing for future income, and think outside of the box, it is plain to see that Condotels are not only real estate investments but more importantly income generating property. Think of Condotels as a Managed Pension Plan. After all, Condotel units are fully managed property. The owner of the property does not have the hassle of renting out the unit and contend with all the normal pit falls of being an amateur land lord. This is taken care of by the Condo Hotel Management” said Collingz.

“One of my clients from Chicago, just purchased 4 Studio Condotel Suites at Lancaster – The Atrium Manila which is currently in preconstruction sales. His plan is to retire in the Philippines in 2012, live in one of the Suites and receive the Condotel rental income on the other three. His outlay for the purchase is only around 85 Dollars a day for 6 years by opting to purchase on a 6 year no prequalification, no down payment, no interest payment plan. Even before completing payment for the units, he will be receiving some $1,500 a month in rental income in additional to any Government or Private Company Pension Plan. Better yet, the rental income is in tune with inflation and buying on preconstruction terms gives real estate appreciation of some 60-80% over 3 years. As Hotel Rates increase yearly, so does the rental income”

Foreign Nationals are legally allowed to purchase as much as 40% of the total number of condominium units on the market at any given time. Overseas Filipinos and more and more foreigners are now emerging as a market for condotel units. Many or our clients are coming from different countries like South Korea, Australia, United Kingdom, Saudi Arabia and other parts of the Middle East,” Collingz said.

Lancaster - The Atrium Tower II [which is the second Tower adjacent to the existing “Sold Out” Tower I] is now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership, no management costs for Condotel Suites and minimum monthly maintenance fees – “You really should take a moment to look at this Philippine Condotel Investment Opportunity” enthused Collingz.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month..

The Lancaster Atrium Suites are now available on the very affordable and competitive New Payment Plan that provides for Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

The current selling price [effective March 1, 2007] for the Lancaster Manila Atrium Tower A Tax Exempt Studio Units is Pesos 75,888 or $1,615.00 per sqm. The One Bedroom, Two and Three Bedroom Suites are priced at Pesos 84,994.56 or $1,808.80 per sqm including Government Taxes [R-Vat 12%]. Units may be purchased on a Six Year No Interest Charge Term of payment or longer term “In-House” financing plans. Turnover of units for Tower A will be from December 2009/2010

All payments will be made to the Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 60-70% on turnover of units.

Thursday, August 23, 2012

Colorado Real Estate: Does It Rock?

We know that Colorado is known for Rocky Mountains. But does the Colorado real estate rock as well? Though Colorado real estate doesn’t rock that much, as per the statistics (and when we compare Colorado real estate to others like Florida real estate or California real estate). However, there are people with contrarian views as well. And believe me, contrarian views do sometimes get huge profits for you, because in such circumstances you will generally face lesser competition from other real estate investors and you can probably get a Colorado real estate piece for much lesser than it actually is worth.

However, we are not saying that Colorado real estate has performed badly. Though I don’t remember the exact statistics but Colorado real estate appreciation was about 5-7% only which is much lower to 25% or so for Florida real estate. Again, when we say 5-7% appreciation in Colorado real estate, we are talking about the state in general. So, it’s quite possible that there be regions in the state where the real estate appreciation is say 25% and there could be places where there has been no appreciation in real estate. The opportunity is always there, the only thing you need is the art of finding the Golden deal in this Colorado real estate market.

When assessing Colorado real estate you must take into consideration various factors e.g. you must assess the overall economic indicators and check what effect it can have on Colorado real estate (both in the near term and in the longer term). You don’t need to be a financial analyst or a real estate guru for doing this assessment, you just need to keep track of various news items and analysis reports on Colorado real estate. Also keep track of the mortgage rates and laws on tax breaks (as applicable to Colorado real estate). All these factors influence the trend of real estate anywhere (not in just Colorado). Moreover, you will need to hunt for Colorado real estate opportunities by going to public auctions, foreclosures, teaming up with attorneys for information etc. Again, remember that a not-so-good news about any real estate (be it Colorado real estate or Florida real estate), doesn’t mean that real estate investment won’t make sense at that place; in fact, it might cut down the number of competitors you have.

So, if you feel that Colorado real estate doesn’t rock; you can probably make it rock for you. There always are plenty of opportunities.

http://www.suttonpoyntz.co.uk/userinfo.php?uid=6734
www.energenia.it/userinfo.php?uid=238
http://www.worshipfacilities.com/go.php/member/32801/
http://www.asoer.org/site/userinfo.php?uid=365
http://jsp-system.com/userinfo.php?uid=818
http://www.horstinsurancelibrary.com/index.php/member/192045/
http://www.niseiuni.com/userinfo.php?uid=358
http://www.masutetsu-golf.com/userinfo.php?uid=2173
http://www.disgruntledtoaster.com/index.php?/member/203983/
http://www.francofon.fr/userinfo.php?uid=3194
http://www.gandino.it/public/userinfo.php?uid=3366
http://www.triz.org.tw/web/userinfo.php?uid=2598
http://www.wsps.ylc.edu.tw/userinfo.php?uid=3783
http://telejoke.com/index.php/member/207309/
http://www.malamutedealaska.com/userinfo.php?uid=1753
http://www.michelepistillo.eu/userinfo.php?uid=590
http://www.intercocfdt.com/modules/profile/userinfo.php?uid=139
http://www.christian-japan.com/home/userinfo.php?uid=725
http://blackiris.tv/index.php/member/265875/
http://palmier-savoir.net/userinfo.php?uid=2211
http://www.asoer.org/site/userinfo.php?uid=366
http://www.horstinsurancelibrary.com/index.php/member/192086/
http://www.gandino.it/public/userinfo.php?uid=3368
http://www.francofon.fr/userinfo.php?uid=3195
http://www.worshipfacilities.com/go.php/member/32814/
http://www.suttonpoyntz.co.uk/userinfo.php?uid=6743
http://www.energenia.it/userinfo.php?uid=239
http://www.eapnetwork.ca/member/462448/
http://www.wsps.ylc.edu.tw/userinfo.php?uid=3784
http://wowdawgs.com/index.php/member/202272/
http://www.michelepistillo.eu/userinfo.php?uid=592
http://www.intercocfdt.com/modules/profile/userinfo.php?uid=140
http://www.christian-japan.com/home/userinfo.php?uid=727
http://blackiris.tv/index.php/member/266035/
http://www.puzzle-bg.com/userinfo.php?uid=5431
http://www.disgruntledtoaster.com/index.php?/member/204177/
http://cdinterface.sourceforge.net/userinfo.php?uid=5874
http://www.acezip.net/userinfo.php?uid=3620
http://telejoke.com/index.php/member/207347/
http://www.scigallery.org/blogger/userinfo.php?uid=159
http://www.acognita.com/index.php/member/306303/
http://www.blogianer.de/user_detail.php?u=fcanell29
http://www.wireless-warrior.org/user_detail.php?u=fcanell29
http://photostranger.com/links/user_detail.php?u=fcanell29
http://www.prettyspiffy.co.uk/user_detail.php?u=fcanell29
http://www.usa-businessdirectory.com/user_detail.php?u=fcanell29
http://macallanridge.com/member/315468/
http://www.officialrc.com/user_detail.php?u=fcanell29
http://www.sure-tips.com/user_detail.php?u=fcanell29
http://totalblacktv.com/myview/uprofile.php?UID=14946
http://www.actionod.com/uprofile.php?UID=925
http://www.senvideo.com/uprofile.php?UID=16109
http://ivoh.org/users/fcanell29
http://www.abooq.com/uprofile.php?UID=1035
http://www.howtosmile.org/user/9959
http://backlink.egynt.net/story.php?id=1070490#comments
http://news.i7d.net/stories/1850449/Lease_to_own.html#comments
http://comicbloc.com/cerebro/story.php?id=498333
http://topd.ro/story.php?id=116043#comments
http://2810.a.hostable.me/story.php?id=46326#comments
http://backlink.egynt.net/story.php?id=1070495#comments
http://2810.a.hostable.me/story.php?id=46328#comments
http://www.bookmarkalley.com/story.php?id=372605
http://news.i7d.net/stories/1850507/Rent_to_own_homes.html#comments
http://comicbloc.com/cerebro/story.php?id=498335
http://topd.ro/story.php?id=116044#comments
http://www.clearinternational.org/index.php/member/160025/
http://www.apileofdogbones.com/index.php/member/406478/
http://simplechurch.eu/index.php/member/58622/
http://www.malamutedealaska.com/userinfo.php?uid=1746
http://www.media-box.co.uk/forum/user/99950/
http://www.usa-businessdirectory.com/user_detail.php?u=rykem08
http://www.officialrc.com/user_detail.php?u=rykem08
http://www.prettyspiffy.co.uk/user_detail.php?u=rykem08
http://www.e-gun.com/user_detail.php?u=rykem08
http://photostranger.com/links/user_detail.php?u=rykem08
http://www.wireless-warrior.org/user_detail.php?u=rykem08
http://www.sure-tips.com/user_detail.php?u=rykem08
http://www.blogianer.de/user_detail.php?u=rykem08
http://www.acognita.com/index.php/member/306295/
http://macallanridge.com/member/315420/
http://www.vacation-rentals.tv/user_detail.php?u=dreiber18
http://www.daleel.net/user_detail.php?u=dreiber18
http://facebookgals.com/palace/pg/profile/dreiber18
http://obilan.com/pg/profile/dreiber18
http://totalblacktv.com/myview/uprofile.php?UID=14926
http://www.actionod.com/uprofile.php?UID=922
http://www.abooq.com/uprofile.php?UID=1032
http://www.senvideo.com/uprofile.php?UID=16091
http://www.howtosmile.org/user/9942
http://www.rcpicture.de/uprofile.php?UID=2287
http://ivoh.org/users/dreiber18
http://pogljad.com/userinfo.php?uid=5669
http://dagblog.com/users/dreiber18
http://yuptv.com/Upload/uprofile.php?UID=1674
http://jume.in/do/edit-2Fpost-Syndicate-update-from-completed-draft-/971
http://youdeaf.com/uprofile.php?UID=883
http://www.ziki.com/en/dwayne-reiber+1218442

Buying property in Spain! Got all necessary information?

Buying property in Spain! Got all necessary information?

Did you know that Spain is the largest country in Europe after France but with just over 40,400,000 people, it is one the least densely populated!

Did you know that over 1.2 million foreigners have chosen to settle and buy properties in Spain, which attracts more than 52 million visitors each year!

Did you know that 640,000 new homes were built in 2004, a higher number than Germany, France and Italy combined. Predictions show that another 2 million homes will have to be built over the next 6 years to meet the demand for Spanish property!

It is not simply Flamenco or Bull Fighting or the San Fermin Festival or lots and lots of bright sunshine that is attracting more and more tourists and tempting people to settle in Spain from around the world.

Even if we ignore that Spain, for last thousand years or so, is the cultural center of the Europe, she has much more to offer to the world’s citizens, many of whom are looking for Spanish villas for sale.

The local Spanish developers had something different in their mind, the majority of the apartments or properties are bought for the good financial returns a buoyant market returns.

There are around 2,750,0000 empty flats around the country and most of them are not even for rent. Owing to this problem, a good number of Spaniards are not finding homes to live in though construction is one of largest employment sector there.

Never the less, the situation is changing. The government is trying to fix this problem by clamping down on planning permissions, although these measures for reform only started recently this will serve to build a financially secured Spain in future.

Currently those who invested in the past have largely disappeared and the houses and flats are now being owned by overseas clients and Spaniards who are buying them as relocation properties or holiday homes.

In any case the situation for foreign buyers is as lucrative as it is precarious. The Spanish property business, like any other business in any corner of the world, has attracted a number of middlemen, who, unfortunately, are as always eager make a fast ‘buck’ with prospective buyers. Experience has shown that when a person is trying to buy some property from a broker he or she runs the risk of overpaying and even fake buying. It is not always possible for an outsider to know the full history of these agents and we should not forget the old saying ‘seeing is believing’.

The Spanish property market changes frequently, before buying property in Spain a cautious buyer should primarily try to gather all relevant information regarding the property and the-then market scenario. A good place for research is always the internet where there are plenty of good helpful sites on buying property in Spain.

Tuesday, August 21, 2012

A Sophisticated Way To Buy Undeveloped Land

There's good news for those who want to buy unimproved parcels of land. Using a Web site, one company has developed an innovative way to match buyers with property that fits their needs-ranging from a first-time buyer to the experienced land purchaser.

Since 1990, a company called LandAuction.com has specialized in the auctioning of unimproved land. This company has created a specialized niche in the market and has been described as a leader in the industry of auctioning raw land all across North America.

The company has developed a reputation for finding property that matches the individual buyer's needs, and is said to have established a solid, credible track record in the marketplace.

At the same time, the auction process offers buyers the comfort of knowing that they are buying property at a price determined by the market.

Here's how the process works. Visitors to the Web site can click on the calendar page to learn when and where a land auction will be held. Auctions are held throughout the country in some of the fastest-growing areas of the U.S. at various convention centers and hotels.

Visitors to the site can then view the list of properties that will be available at the auction. Each property has a brief description and links to pages where buyers can see maps, aerial photos and any legal documents available for that property.

Once a potential buyer has identified a property he or she wants to purchase, the Web site suggests that the buyer contact a county planning department, speak with local realtors, read through area real estate ads and decide how much the property is worth. That way, at the auction, buyers can set the price for the properties they want and bid accordingly. Buyers are urged to decide on a maximum bid before they go into the auction.

Prospective buyers are encouraged to inspect a property before they buy. Walking the property, asking local developers pertinent questions, and meeting with brokers and bankers in the area are all steps they can take.

http://www.studioloschiavo.eu/userinfo.php?uid=621
http://toycarscollection.ru/userinfo.php?uid=1428
http://www.xoopstr.org/userinfo.php?uid=3784
http://www.pfarreneusimmering.at/userinfo.php?uid=389
http://tuckersblues.com/modules/profile/userinfo.php?uid=4746
http://www.marimba.org/en/userinfo.php?uid=36512
http://www.genuine.in/userinfo.php?uid=3637
http://lnx.irisversari.it/xoops/userinfo.php?uid=232
http://www.domainnameforum.com/userinfo.php?uid=12600
http://roll-on.tisj.com/userinfo.php?uid=605
http://www.cafeconf.org/2007/userinfo.php?uid=72752
http://www.k-teknoloji.com/demothemes/userinfo.php?uid=2091
http://www.europa-universalis.sztab.com/xoops/userinfo.php?uid=3727
http://www.ad9.org/userinfo.php?uid=3238
http://www.concourscassin.eu/userinfo.php?uid=5518
http://www.gamefarm.jp/userinfo.php?uid=762
http://www.jsmc.jp/xoops/userinfo.php?uid=176
http://www.cavalluccimusica.it/public/userinfo.php?uid=570
http://www.rocatca.org.tw/userinfo.php?uid=1318
http://narucoat.jp/userinfo.php?uid=335
http://www.xoopstr.org/userinfo.php?uid=3747
http://tuckersblues.com/modules/profile/userinfo.php?uid=4721
http://lnx.irisversari.it/xoops/userinfo.php?uid=233
http://roll-on.tisj.com/userinfo.php?uid=607
http://www.domainnameforum.com/userinfo.php?uid=12611
http://www.genuine.in/userinfo.php?uid=3639
http://www.europa-universalis.sztab.com/xoops/userinfo.php?uid=3729
http://www.cafeconf.org/2007/userinfo.php?uid=72753
http://www.k-teknoloji.com/demothemes/userinfo.php?uid=2092
http://www.colegioespu.com.br/descoc/userinfo.php?uid=1977
http://www.concourscassin.eu/userinfo.php?uid=5521
http://www.zonetronik.com/userinfo.php?uid=4557
http://www.gamefarm.jp/userinfo.php?uid=765
http://www.ad9.org/userinfo.php?uid=3240
http://www.cavalluccimusica.it/public/userinfo.php?uid=572
http://www.jsmc.jp/xoops/userinfo.php?uid=177
http://narucoat.jp/userinfo.php?uid=336
http://jsp-system.com/userinfo.php?uid=780
http://www.masutetsu-golf.com/userinfo.php?uid=2142
http://www.niseiuni.com/userinfo.php?uid=354