Voices in Finance » Real Estate

How to Invest a Lump Sum of Money

Mike — Thu, 10 Nov 2011 12:45:48 +0000

Occasionally in life we are lucky to have a large lump sum of money through inheritance, prudent saving, bonuses, or perhaps even a lucky OZ Lotto win. It is always tempting to spend money when we have a large amount of it but it is far, far wiser to invest it in a sensible place and watch it grow so that you can reap the benefits of it for a longer period of time. Making a wise investment with your money can lead to greater wealth in the long run and this article will demonstrate how.

Property Investment

Property investment is one of the safest ways to invest your money because the market does not fluctuate massively. This type of investment is a long-term investment but it will never cease to provide returns because there is always a need for housing. As long as you make a wise investment and utilise property valuation software and surveyors, then you can expect to receive returns on your property until you are ready to sell it on.

There are several benefits to property investment over many other sorts of investments because of the control you have over its management and its stability. One of the biggest advantages, however, is the fact that you can invest an even greater amount than you actually have and borrow the rest against the property you are buying. You can invest as much as 80% more than you could alone through the aid of a mortgage, allowing you increase your standing rapidly without the need for further stringent saving.

There are several ways to invest in property but one of the most prudent and fastest returning is the investment in off plan property. This investment involves investing in an as yet unconstructed property based on the plans provided by the developer. Whilst this sounds riskier, it is a tried and tested method which enables developers to reduce their risks and investors to increase their returns.

Stock Market Investment

Undoubtedly, stock market investment is the best, fastest and most tested method of investment. You can expect large returns from the stock market but unfortunately you can also expect large losses. Managing a stock market investment is a difficult process which requires time, understanding and effort, but success in such a market is guaranteed to come with a large reward.

Unlike with the housing market, very few people grow up with a link to the stock market in their lives. The result of this is that whilst you can walk into a house and know if it is nice or not, most people cannot look at a stock trend and discern whether their investment will grow or shrink. Thus, it is vital to educate yourself on the workings of the stock market before investing in them and it is wise to consult a financial advisor before jumping in.

There are definite bonuses to investing in the stock market but it is a time consuming investment. You will, however, never need to wake up in the middle of the night to deal with a burst sewage pipe, and you will have a greater ability to withdraw your funds than when investing in property.

Invest in Something

One thing that is for certain is that an investment is a far wiser use of your money than a purchase of the Lamborghini Diablo that you have always wanted. When you are fortunate enough, or sensible enough, to have a grasp on a pot of money, do not let it sit there and do not spend it; instead plant a seed and watch your money grow.

Six Tips On How To Spend Your Marketing Dollar

Mike — Mon, 24 Oct 2011 16:18:13 +0000

The marketing campaign is crucial to selling your property. While real estate agents will have suggestions on how to spend your marketing dollar there’s many factors you need to consider. Too often, money is wasted on inefficient publicity or expensive campaigns that don’t reach the right audience. Here’s a few useful pointers:

Tip One: Don’t Duplicate Your Advertising

Too often real estate campaigns can be wasted when lavish sums of money are spent in identical areas. This applies to both print and internet. For instance, why buy large quarter page advertisements in two local magazines? Or why pour money into advertising on two very similar property websites? You need to be canny with your budget. If you are putting money into a metropolitan newspaper advertisement do you need to spend on a local weekly paper also? You need to question the value and reach of each marketing buy.

Tip Two: Virtual Tours

Virtual tours are becoming a staple of property promotion everywhere. They are also excellent marketing tools as they allow anyone anywhere in the world to view your property on their laptop. If you’ve got a terrific property investment Sydney located this allows more people the chance to discover it. If you don’t have a video camera yourself your real estate agent should be able to arrange filming of your property.

Tip Three: Social Media

Social media is another non-traditional marketing form that is really taking off. Whether it’s Facebook or Twitter or Myspace or any of the countless other social media platforms that exist, they are all fantastic ways to open up your property to whole new markets. Unlike more traditional forms of publicity, social media allows you to create more of a buzz, plus you can get instant feedback and comments from people who’ve visited the property. The other bonus is that social media campaigns cost you nothing other than time.

Tip Four: Know Your Target Audience

Think about who’s likely to be interested in your property. This may depend on factors such as location; size of property and other features. This in turn will influence where you advertise. If you have a large family friendly home then it’s no good advertising your property in single magazines. The price range of your property will also affect where you publicise. An expensive, higher end home with top of the range facilities would be of interest to executives, for example, so you should look into advertising in publications that they read.

Tip Five: Internet – which sites, Domain, etc

Internet advertising of properties is huge and a lot of your traffic will find your property via the internet. There are many options available to you. You can advertise, for instance, directly via banner ads or pop ups or rollovers. Some sites will have different rates depending on your placement on the web page. You need to research each site and find out how effective they are at generating traffic. One simple method of doing this is do a google search and see how quickly their properties come up.

Tip Six: Signage

Physical signage still has its place and is greatly effective. They cost money but are generally worth it. The more visible and prominently displayed they are, obviously the more useful they will be. Real estate agents usually organize the signs for you. Having a large billboard outside your property will be yet another way of alerting potential buyers and you need all the help you can get.

When Selling Is a Bad Idea- Understanding Property Market Reverses

Mike — Tue, 18 Oct 2011 13:12:46 +0000

According to recent studies Sydney property owners made a big mistake selling into a very cold market in the last year. About $800 million in net losses were incurred, pretty big money in anyone’s language. If you own or if you’re buying an investment property, it’s well worth your while to explore this issue to make decisions regarding your portfolio.

The simple fact is that property prices naturally move up and down. Sometimes they don’t do anything, particularly in a tight credit market. Booms don’t last forever. Property investors need to consider all angles in terms of their property values, and plan ahead for contingencies like slow markets or price slumps.

How losses happen

The losses in the Sydney property market need a lot more scrutiny. There are some very valuable lessons to be learned from this situation, and they’re particularly relevant to property investors.

All property owners try very hard, often for years, to avoid taking losses on their properties. Resistance to downward moves in property prices is always very strong.

Losses occur due to several common issues:

The owners can’t afford to hold the property: This is an absolutely textbook scenario, in which cashflow dries up or can’t match costs of holding property. The property owners are in a rock or hard place situation, in which selling involves taking a loss, but holding could be even more expensive, building up costs.

Income from rental dries up: If, as many property owners do, you use rental income to finance borrowing, you can find yourself in a very tight squeeze if the property is unoccupied for any significant length of time. Six months without a tenant can compromise a tight budget.

Property costs: Some “bargains” are only bargains for sellers. If you purchase a property that needs major outlays of cash for improvements or maintenance, these costs can sabotage your investment strategy very effectively. One major building defect, for example, can cost six figures quite easily.

The local property market hits a slow period: This affects your ability to make capital gains. The “ROI factor” kicks in and many people get out of property investments to free up capital to make better money elsewhere.

Unrealistic expectations of returns: Some people just don’t do their arithmetic when investing in property. The average increase in mainstream housing prices in Australia is 8% per year, which is just slightly above the median interest rate in recent years and not much more above the CPI. Overestimating returns is asking for trouble, and sellers often lose on this basis, underestimating costs and expecting too much of returns.

Dodging the bullets and avoiding losses on property investments

The best way to avoid taking losses on a property investment is to lock in an investment with a lot of upside and long term capital gain potential. A good example of this approach is one favored by professional investors, who’ll buy an upscale investment property off the plan as a watertight investment. These brand new buildings are less susceptible to broad market moves, because they’re a better class of property, and usually built in high demand areas.

In any market, quality keeps its value. Remember that when you’re looking at your investment options.

Learn The Secrets To Buying Land Inexpensively

J. Hamilton Fraser — Sat, 09 Oct 2010 03:00:49 +0000

In today’s post I will be sharing some secrets with you about buying land inexpensively. If you’re in the market to purchase cheap land, right now is one of the best times in recent history because the United States is in a very strong buyer’s market. Let me tell you what this means to you as a buyer. During a buyer’s market, there are fewer people buying land than there are people selling land. This means that sellers have fewer opportunities to actually sell their property. If they stand any chance of selling their property during a strong buyer’s market, their forced to lower the prices significantly to attract potential buyers.

For those individuals who are interested in taking advantage of this buyer’s market, it would be a really good idea if they spent the time to practice their negotiating skills. Not many people are natural negotiators. Being a good negotiator is a skill and talent that takes time and effort to perfect. Sure, you will be able to find good deals on land because of the buyer’s market we are in but if you are a very good negotiator, you will be able take advantage of this opportunity even more. One of the most important skills that any good negotiator has is that they’re not afraid to walk away from a deal if they can’t get the right price. This especially holds true now because there are so many more opportunities to find the right deal. The pressure is really on the seller and it’s never on the buyer.

The part that is easy about buying land during a buyer’s market is actually finding land. You will find hundreds and hundreds of listings. The part that’s not so easy is sifting through all of them and finding the best one for you. After you have narrowed your search down, you need to be especially diligent during the negotiating phase and not waver on your price. Never let your emotions influence the amount that you’re willing to pay for a particular piece of land. If the seller happens to be a better negotiator than you, it’s possible that he can convince you to pay more than you should for a particular put piece of land. You need to prepare yourself to be the better negotiator and be prepared to walk away if you can’t make the right deal.

Finding the Perfect Waterfront Property

J. Hamilton Fraser — Fri, 24 Sep 2010 12:20:06 +0000

There’s nothing quite as relaxing as a day on the water. Whether you are floating along in a boat or sitting on the beach watching the world drift by, you end up relaxed and refreshed. This is just one reason you should consider waterfront property if you are looking for a new home or investment property. You’ll get a great view, a relaxing atmosphere, and a location that anyone would want. There are waterfront properties available all over the country, knowing what kind of property you want can help you get the best deal. So what sort of property is best for you? Let’s take a look at some of your options.

Types of Waterfront

Before you look at waterfront property for sale, you should decide what type of waterfront you are most interested in. There are 3 basic types of waterfront: riverbanks, on the lakeshore, and by the sea, and each has its advantages and disadvantages. Each type can be further subdivided. There is a great difference between the sunny, sandy Florida coast, and the rocky windswept coasts of the Pacific Northwest. Do you prefer a small urban property along the river walk close to the artistic and cultural events of the city? Would you rather have a wilderness cabin with a boat dock and no interruptions to disturb you while you are fishing? Are you looking for a vacation property on some sort of beach paradise? There’s a type of waterfront property for everyone. You will just need to do some investigating to find yours.

Where to Buy

Cheap waterfront property is available in many places. Many people looking for some to buy might consider NC waterfront property. Others may look for property along the Great Lakes, the West Coast, the Gulf Coast, or just around some small lake that is only locally known. Wherever you buy your property, always make a trip to go see it so that you know it is a desirable spot. A home on a lake that has become a nasty stagnant pond or swamp may cost less, but it will be very difficult to sell when you find its only use is as a mosquito farm. Keep in mind that what you are buying is not just a place to live, but you are buying investment property. You should expect and be able to sell the property for a profit at a later date. The real advantage of waterfront property when viewed in this light is that it is always in demand. Buying waterfront property today means not only a great view and more relaxed pace of life, but also future profits and prosperity.

Buying Homes Cheap

J. Hamilton Fraser — Fri, 17 Sep 2010 19:10:09 +0000

The past few years have seen some crazy things happen. A market which once saw a sky-rocketing real estate frenzy has now become a mecca of cheap homes for sale. This has been true throughout the United States from one degree to another but has really hit home in places like Florida and California.

For decades Florida was the place everyone aspired to retire to. Many Americans had a dream of living on or near the beach in Florida if only they could save up enough money to buy and move there. Working couples felt they were lucky if they managed to pick up, what at the time were considered cheap vacation homes. But in the last few years they have only been ale to sit and watch their retirement dream go up in smoke as the market crashed.

Today Florida has become a hot bed of activity for real estate investing once again. But today people are no longer looking for a luxurious retirement residence but instead are investors looking to buy cheap homes.

These investors need to be sharp and savvy because picking up cheap homes in Florida or anywhere else in the world is not a sure fire way to riches. In fact it’s a very risky investment which could leave an inexperienced buyer in a tight spot. Professional investors recommend that people who have the extra cash and are thinking of picking up a cheap home to flip begin with one simple rule – K.I.S.S. The novice investor needs to take their time and keep things simple and easy. Don’t bite off more than you can chew or carry. That means steering clear of any home which has questionable structural integrity or requires any kind of major renovation to bring it to market. For your first flip buy low and buy a home which just looks bad but is sound otherwise. In other words a home which is in a decent locale but which has been left a little shoddy. It needs a coat of paint and some minor repairs and renovations. Maybe a new carpet or two. Perhaps some new eves trough and some minor landscaping. Basically something any weekend warrior could do him or herself over the course of a few weekends.

Keep it simple on your first project and before long you’ll be able to sell at a profit and look for more cheap homes with similar potential.

Bank Foreclosed Homes Back On The Market

J. Hamilton Fraser — Fri, 03 Sep 2010 00:48:12 +0000

These days, we are hearing a lot of positive news about the nation’s economic situation. In particular, a lot of people are saying that consumer confidence is on the rise, and that people are starting to spend again. These same people say that this is a sign that we are exiting the recent financial crisis, and that the recovery is slowly but surely beginning.

This is all great news if you are an investor, but is absolutely useless if you are one of the people who has been worst affected by the crisis – that is to say, if you are one of the people who is facing the possibility of having their home taken from them due to delinquency on bills. The number of foreclosures in the nation still remains high, in spite of other positive indicators like consumer confidence and the unemployment rate.

What brought on the foreclosure crisis? Well, basically, a lot of people ran into cash flow issues and realized that they were no longer going to be able to continue making steady payments toward their liabilities. This was quite a problem, because most people’s largest liability is their home loan, and when they are no longer able to continue making payments toward that mortgage, the banks step in and decide to repossess people’s homes – and so we saw a rise in foreclosures. These bank foreclosed homes were then placed back on the market for resale, but very few banks were able to recoup even the costs of the foreclosure process from the sale of these repossessed homes.

As a result, banks are keen to avoid foreclosure – perhaps as keen as many homeowners are, in fact. If you are one of the people who is in the unfortunate situation of facing a home foreclosure, then it is important for you to realize that there are a lot of options out there. There are ways to work with banks to refinance your mortgage. We suggest you speak to a financial expert as soon as possible.

Boost Your Income Investing in Florida Real Estate

J. Hamilton Fraser — Sun, 29 Aug 2010 02:53:13 +0000

Weston, the famous Miami suburb, has metamorphosed into a developed locality and is continuously progressing, which has transformed Weston into one of the most sought-after residential destinations in Florida. The growing facilities and various attractions have made this Miami suburb attractive to people of different backgrounds, including young families, singles, and senior population.

Popular once only for its shopping malls, Weston Real Estate has added to its repertoire, including cultural venues, entertainment settings, marinas, the ocean, educational institutions, and more. The proximity of the Suburb to the vibrant city of Miami, a world favorite, is not to be discounted, of course.

The excellent transport access provided by the Suburb is another score in its favor. Weston is geographically put between two airports, and is nearby two key interstate highways, all of which offer the residents convenience of travelling to and from the City. With such infrastructure and facilities, Weston Florida promises home buyers a life of sheer convenience.

The Suburb offers everything that one would expect of an ideal residential location. Salubrious climate, safe community, facilities required for day-to-day living, vibrant nightlife, and a great City to visit every weekend in the proximity, this Miami suburb indeed has it all to set one’s home.

Recent statistics show an increase in the number of Weston real estate investors, which indicates the selling power the Suburb enjoys. The luxury condominium real estate is emerging as a segment with impressive potential. While luxury condominiums are usually associated with exorbitant prices (which is also true), Weston condos surprise many with their affordability. There are many luxury condos that fulfill residents’ dreams of fine luxury living at prices acceptable to them.

The real estate market here is currently very promising for buyers as more and more condos are up for sale. If you are looking to buy a luxury condo or home, now is the most appropriate time, as the trend of increasing real estate prices has replaced its reverse predecessor. It wouldn’t be long before prices reach sky-high.

Hire a reliable realtor when you start looking for your condo or weston homes for sale. An expert realtor shows you properties that fit in your budget than you would not have discovered on your own, simply because the realtor is more knowledgeable of the location than you are. Explore interesting properties, inquire about the locality reputation, and experience the surroundings, before saying yes to the property.

The Present Scenario of the International Real Estate Market

J. Hamilton Fraser — Mon, 28 Jun 2010 23:06:53 +0000

The global real estate market has been a field known to make high profits over the whole of the past decade. The market prices in the international property market soared up so high in the same period and it attracted the attention of investors from all over the globe. This market was not confined to any specific locations.

However, the last year alone has shaken the fame that the international real estate market was enjoying. The market prices along with the number of real estate investors declined sharply in the past year. The real estate market has somehow made the journey through its toughest periods and currently has showed up a slow recovery. However, we must not forget the events that led to the fall of the market.

1. The initiation of the big fall started with the collapse of the U.S. stock market and the shut down of some of the biggest names in Global Investment Banking.

2. Blogging, the new marketing option had talked very high of the international real estate market and helped in attracting more investors over the decade, but the same took up a new trend and started criticizing the real estate market, which eventually led to its fall.

3. Though the economic meltdown and recession resulted in a weakening demand for real estate in popular destinations of the US, UK, Europe, etc, the same helped to rise the popularity in other destinations namely Japan, Germany, Canada, etc.

Nevertheless, we are certain that this fall was due to the effects of the recession and will die away eventually. The real estate market will climb up the ladder soon. The current situation of the weakening dollar is a good signal that real estate market will shoot up since US properties in Orlando Fl and other popular places are really cheap. In spite of the adverse effects, a bright future is expected owing to the growing trend of immigration and expanding globalization.

The real estate investors can start investing in Orlando investment property and other areas currently since outstanding results are expected in the future.

The Many Advantages of Investment Property

J. Hamilton Fraser — Wed, 23 Jun 2010 16:58:57 +0000

The number of people interested in investment property is going to see a huge surge due to the London Olympics in 2012. Not only in London, but other parts of UK too are going to see similar surge in interest in buying investment property. There are many advantages of investing in property, whether you are someone buying a house for the first time, or you are a real estate person who likes to make quick money by buying and selling property. Whatever the scenario, if you are smart enough to spot the right time and property investment it is always profitable.

The most important benefit of investment property is the stability it provides to your portfolio. The stock market can help you make quick gains but your gains might just get eroded as fast. In short there is more volatility in places where you can make money very quickly and lose fast as well. However, if you buy a house or a building and rent it to tenants you are assured a steady stream of passive income. More importantly, the land is always yours and it is highly unlikely that the value of land will ever go down.

The most important criteria for investment property is to think of it as a long term plan. Then you will increase your chances of making money. There will be the odd ups and downs in the real estate market, but if you know the right mortgage lenders to fund you and do your due diligence about a property, you can never really walk away with a loss. However, there are certain things that are very important which you need to look at before investing in a property.

Location for a start, the demand for houses from a rental perspective, any incurring maintenance charges and the overall placement of the area and the building itself are all factors that you have to carefully assess and analyze before deciding to buy investment property. Financial gain is almost a certainty if you can show patience and wait for the opportune moment to sell off your property.

According to statistics, the price of the average house doubles every 7 years. Depending on the demand for that area, new developments and socio economic conditions could cause this rate to go up or down. But if you own investment property and are not in a hurry to sell it off, you are likely to make a profit eventually.