Business & Property

Find Out Common Issues Challenging Property Investors

Property investment is promising but to also has some issues needs to be dealt with especially by the investors. If you want to be successful, you need to know at least common issues challenging property investors while they are involved in property investment. Buying a property sounds easy to do. Leasing out property sounds promising. Selling property sounds profiting. However, the focus should also land on the challenges that every investor, like it or not, need to face. By dealing with the issues that potentially hold back the move, investor will be able to build their investment properly. Thus, the profit or any advantages they expected from the start will soon become real.

Regardless of property type you are investing in, being aware of the common issues involved is necessary. It will help you to be more aware of the plan you need to take to tackle all the issue and build your business. Here are common problems or issues that might challenges every property investor:

  • One of the most common problems face by investors, especially the inexperienced one is low property appraisals. It is easy to get stuck with property in area with low appraisals. This is because the opportunities are slimmer for inexperienced investors. One of the common factors causing this problem is socioeconomic aspect. Thus, you will need to be able to identify more suitable property in the location with high appraisals even if the opportunity is slim.
  • Interest rate is also one of the biggest challenges that the investor will face if they choose a loan to fund their investment such as when they are going to purchase a property. The procedure is quite maddening especially when you are after commercial property investment. Your credit score is required to be higher with more collateral. It is also highly possible for the bank to charge investor with premium interest rates. Purchasing rental property with a loan will be different than regular residential mortgage.
  • Next common issues challenging property investors is maintenance. It sounds simple yet complicated at the same time. One thing that cannot be avoided when it comes to maintenance is natural element of Mother Nature. Besides, every investor or landlord face different type of tenants which can also results in different maintenance challenges. The solution is either to hire property management company or make your own maintenance plan including financial expense.
  • Transaction and negotiation can also be a challenge for property investors. Those require good social skills so the process will result in satisfying deal. However, negotiation skill can be built by times. The more experience gained, the more skills gained as well.

Other common issues challenging property investors are time consuming process. Like it or not, building property business is time consuming. The time to establish the business can take years even. There are many processes that the investors need to do such as analyzing market, managing financial matter, and many more. Those require patience which not every investor possesses.

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When is the most ideal time to sell your property?

When it comes to property business, gaining the best profit is your main aim. Renting or selling your property is the time when you have chance to earn your profit. However, many people wonder if there is ideal time to sell property. People say everything will come in time. In business, time is like an asset. Knowing the best time to take an action will be very advantageous. This is also the case when it comes to property selling and buying. There is always certain period when people flooded auction to buy a house and one time when there is no single buyer coming to see around. So there must be a certain season or period when selling property is the most promising to do.

How to know the most ideal time to sell your property?

It is true that there is certain period or season when selling properties is more promising than other times. However, it is also followed by knowing that it depends on certain types of property. For example, property type A will be best sold in the beginning of the year. However, it does not mean property type B will make the same chance. Thus, you may need to know first about the general rules of this.

  • If you have family home as your property you should avoid holiday to sell it. It is the best to sell family home when families are around the area to inspect. Holiday is the time when most family spends their time overseas or out of town to have a family trip. Thus, the chance to sell your family home is lower by the time. The most ideal time to sell family home for example is when the middle of the school term comes.
  • If your property is located near the beach or beachside, the most ideal time to sell property is during summer. Holiday home is best to sell during holidays. Lots of potential buyers have their time to inspect the property and the chance of them getting interested in your property is higher during summer or holiday. People tend to flock the beach or tourism spot during summer anyway.
  • There is also the type of property with a north facing either homes or apartments. This type of property is said to be best-selling in the middle of the year. During this time, the sun tends to sit lower. Somehow, the angle makes the home have better lighting. Choose cooler months if you want to sell your north-facing properties.
  • Next is the type of property which has garden. The most ideal time to sell property with a garden is during autumn or spring. During those two seasons, the garden will look at its best. The flowers and other plants will look lively and beautiful. This can make your garden as the key selling point to the buyer, which is beneficial for you. Different from winter where the soil will look dry and the grass look unattractive.
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How Property Investors Pay for Their Investment

There are different ways of how property investors pay for their investment. Each type of payment leads to the result of their investment somehow. Payment is of course a major factor in property investment. That is why property investment needs steady finance since the beginning. However, do not believe the myth saying that only wealthy people can afford to invest in property. If you can plan your finance well from the beginning, you can afford to pay the investment just fine. In fact, you can expand your investment if you have found your rhythm in investing and managing your property.

How property investors pay for their investment

Characteristics of how property investors pay their investment

Each person has their own different way to do things or solve their problem. Some people choose to follow common rules and others choose to go their own way. There is no need to be judgmental when it comes to making decision. However, business is calculative thing to do. Every decision has different result. To gain more knowledge about property investment, here are the different types of how investor pays their investment :

  1. The first type is those who tend to wait longer to pay or invest. Some people believe that everything comes in the right time. However, property market doesn’t have forever to wait for your agony. In fact, waiting or prolong your investment may result in buying wrong asset indeed. In simple word, procrastination is one of the common types of payment done by investor because they think too much about ‘the right time’. Waiting is good to train patience but it can make the right opportunity gone.
  2. Next common payment done by property investor is to pay for the wrong asset. There is so much to know before spending money for property investment. Smart investor should build their knowledge first before deciding to invest in certain property. They need to know if the property is investment grade or just investment stock. Sometimes, impatience can also lead investor to pay for wrong asset. They think too much of how to get into the market and gain profit rather than buying the right property.
  3. Seeking for professional advisor before spending money for a property investment is one of the types of how property investors pay. Truth to be told, this is the right thing to do when it comes to property payment. Smart investors tend to make calculative move before purchasing property. Property advisor can give beneficial advice about possible return. Thus, paying for wrong asset can be avoided. Besides, this can be a great way to make investment go for a long run.
  4. Another type of payment done by investor for their property investment is over-paying. They tend to pay too much more than necessary. This will result in financial lost because property investment involves big money. Thus, it is recommended to find out more about the property before deciding to invest in it. Make sure to calculate everything and don’t miss anything. Remember that how property investors pay can decide the result in return.
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Tips to Choose Commercial Property to Invest In

Commercial property is now growing rapidly due to the demand of the market. Besides, investors choose commercial property to invest in due to more benefits to get than when investing in regular real estate. The income earned from owning or leasing our commercial property is more secure.

Choose commercial property

The contract to sign with the tenants also last longer. People run property business either to earn the highest profit or stable income. If you are interested in investing your money in commercial properties, you might as well know how o choose the right one. No matter how passionate you are about investing in this particular asset, you need to spend your money for something bigger in return.

How to choose commercial property to invest in?

Basically, there is no significant difference when it comes to choosing the best asset in a form of property. However, you choose commercial property in this case. This makes you need to think of some considerations so you choose the right one not only the best one. To help you find the right property for commercial purpose, here are some useful tips:

  1. The first consideration is none other than location. This always comes first when it comes to choosing the most ideal property. This is like a rule to choose property based on the location. To choose the right location, you need to think of many things such as how effective is the property in a matter of commute, or how effective it is to be reached by your future staffs, etc. While contemplating about the location and stuffs, you need to think big to invest in commercial property.
  2. You need to take your time in deciding the right commercial property because it is a big deal. You need to think of it as your retirement security instead of quick cash machine. By thinking so, you will choose commercial property to invest in carefully and full of thorough calculation.
  3. The number of property is also important to consider. Sure, it is recommended to buy something you can afford. And if you can afford 10 apartments instead of 5 then why not? Besides, the more units you buy, the cheaper you must pay. In addition, there is no guarantee that managing 5 apartments will be easier than it is 10.
  4. Time is something you need to consider. The beginning is always the hardest and in the beginning of your conquest to choose the best commercial property, it might not be easy. Screening deals and making offers take time but you will learn the best way eventually.
  5. Finance is also need to be considered. If you choose commercial loans, you need to remember that the down payments are often higher than residential loans. It is wise to ask around the best lenders if you are going to choose this financial method. That’s how you can also choose commercial property to invest in properly. You’d better plan your finance since the beginning for successful investment.
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Why You Should Invest in Established Property

When you have come to a decision that you are going to purchase real estate as your asset, you need some reassurance beforehand. You need to remember that you have two choices when it comes to purchasing decisions which are to purchase new property and the established one. If you are more interested to invest in established property instead of the established one then you must have the right reason why you need it. Property investment is not small deal. In fact, it is a big deal involving big budget which you should spend properly so that your investment won’t go a waste.

Benefits to invest in established property

For some reasons, tenants like the idea of dazzling looks of real estate they are going to rent or buy. This makes them feel comfortable and somehow safe. However, if it is seen from the investor’s point of view, the idea of purchasing new development property is quite hard to follow. Why is buying established property more advantageous than the new development?

Invest in established property

As mentioned above that purchasing or investing in property requires big budget especially when you buy it not for living but for business. When you purchase a house for living, the only reason you need is to make sure that your money is worth it. You need the house for a shelter and make sure that the house is safe. However, you are an investor and is supposed to thin further. You need to earn profit either from leasing out the house or renting it out. Buying established property means you don’t have to spend more money for further expense because everything is already available.

It is different when you buy new development because you need to calculate your next expense. You need to spend more money to develop your property. You don’t just pay for the actual house but also to the developer. There is no problem if you purchase new development while you have your finance stable. If you can afford the property and has a vision of what you are going to develop after purchasing the new property then it is your choice. However, if your budget is limited and you can’t afford for further development than it is safe to say that invest in established property is more beneficial.

You can even negotiate the price when you buy established property. You will also have no problems dealing with capital growth. In fact, you will gain be able to enjoy the capital growth immediately. You may need to calculate further expenses even when you choose to buy established property. However, it only goes to the extent of expenses for renovation or small fixing. The price between developing new building and renovating the established one has wide gap.

Furthermore, investing in new development will be likely requiring much hassle in searching for potential location. Meanwhile, the established property has more value you can gain to earn you profit. This turns out that invest in established property is more recommended especially when you have limited budget.

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The Best Tips to Invest in Holiday Home

Invest in holiday home

Your home is your property. If you decide to invest in unit or home then you need to make sure to have goal either to rent it and get steady income or sell it to gain the best profit. One of the most promising assets is to invest in holiday home. This is type of home specifically use for holiday such as weekend break, summer vacation, and many more. Holiday home is promising asset because the use of it is so clear. Besides, people always need a vacation either short or long term ones. A holiday home is more preferred these days instead of hotel especially for family trip or group travelling.

Tips to invest in holiday home

Now you see holiday home as promising asset and decide to invest in this type of property. However, it is not as simple as buying a scoop of ice cream. Purchasing property either for commercial or living purpose is a big deal to handle. You need some tips to guide you purchase the right property and here they are:

  1. Choose the location wisely. In choosing property, location always comes as first priority. It is not a myth that location plays important role in property business. In fact, choosing the right location can lead to the right tenants and best profit. First, you need to decide what kind of vacation your target is. Then, you can choose the right location. For example, if you target summer vacation then you need to find holiday home near beach, lake, etc.
  2. Once you find the best location, you need to assess further point. This is important so your possibility to further or develop your property business in the future can be estimated. You need to inspect if the area around the location of your target holiday home is great to help the value of your property increasing.
  3. Consider your financial position before making a deal to invest in holiday home. Purchasing the property lie this requires lots of money. If your finance is not ready than you are not recommended to take rush decision. Make sure that you buy affordable holiday home. If you can’t afford luxurious holiday home, you can choose the more humble one. Small or minimalist holiday home is also good choice especially if the location is strategic. Lots of potential travelers will come to rent your holiday home in the right season.
  4. You need to remember that the income you get from renting your holiday home is seasonal. You may get higher profit by renting your holiday home. However, it will be different when it is off-season. Thus, calculate the cost of purchasing and maintaining. If they are at least balance, the house is worth to invest in.
  5. You may need to hire management issue after deciding to invest in holiday home. Holiday home is usually located far for the owner’s home. Thus, managing holiday home can be a hassle. If you can’t afford spending your time managing your property, you might as well trust property management company to take care of the issue.
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The importance of Property Insurance for Your Real estate Business

Insurance is something that has become more and more familiar. There are many things you can insure include your property. As owner, you must realize that your property is your asset which is valuable and need something to protect its value from going down due to unexpected incidents. Thus, property insurance has become an important part of property business these days. It is important for property owner to feel safe for their properties so they can own, rent, or sell the properties in the future without so much hassle.

Benefits of having property insurance

Not everyone believes in the benefit of insurance. However, the choice is yours. There is no obligation that you should insure your property. However, there are possible risks to happen in the future which you can’t calculate and the damage can possible be covered by insurance. It is important for you to think about it before deciding whether or not you need insurance for your property. Here is information of the role of property insurance:

  • Natural phenomena are something unpredictable. Once it happens, you can’t avoid them. Hurricanes, tornados, flood, earthquakes are examples of natural phenomena which may happen anytime without warning. Those natural phenomena may result in horrible state to your property. If the damage not cause to expensive budget you may have no worry. However, it is different case when the damage requires expensive fixing. Thus, you will be thankful if you have insurance to cover the expense of fixing your property.
  • There is possibility that the tenant or your property get into accidents during their renting period. There is none to suffer from the consequences but you, as the owner. If you benefit from your property insurance, you can avoid financial cost to cover the hospital bills of the victim’s. This type of incident can be prevented but not entirely. You will never know when such hazard comes.

Choosing the right property insurance

  • Before deciding to buy property insurance, you need to inform yourself about all the benefits and aspects. Thus, you will know what type of insurance you are going to buy. Make sure that the insurance you choose cover everything you need. Each property insurance type offer different coverage so you need to choose wise. Make sure that you get information in details so that you know exactly what you need.
  • It is also essential to choose professional and trusted property insurance company. The professional one will inform you everything you need without hiding anything. They will help you find the most suitable insurance to make sure that your property has the best coverage. You can find the best company by asking from your friend’s recommendation or search yourself online.
  • You also need to know that each coverage cost differently. The method of payment is also varied. Thus, choose the type of coverage you can afford and pick payment method that you are comfortable with. Plan your finance so property insurance won’t ruin your financial management.
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What You Need to Do in Property Open House

If you are going to rent a house either for residency or business, you will go through the open house process. In property open house, it is better if you are escorted by a property so you wander around aimlessly. You need to hire property agent who represent the buyer or renter since you are going to rent not sell. Choosing a house to rent is challenging because you need to meet your personal needs above everything else.

Property open house

Even your agent need to make sure that the house you are going to rent is what you are really searching for. You don’t have to go too far with the inspection. You just need to pay attention on your simple checklist.

Things to pay attention to when attending property open house

Even though you are escorted by your property broker or agent, you still need to know what to do with yourself. You need to know what you really want since it’s you who are going to use the house. It is recommended that you do your own inspection during the open house. Here are what you need to consider when you attend the open house along with your property agent:

  1. Make sure that the safety of the house is well protected. You have to inspect the security system of the house. You can check important point such as window locks, deadlocks, as well as other security features. This feature impact directly to the deal you are going to agree later if you are positive to rent the house. Either the impact is positive or negative it depends on the security level of the house and your standard.
  2. You need to pay attention on the space when attending property open house. Think of whether or not the house will fit in your storage. You need to make sure that your things from previous house will safely fit in the house. Make sure that the space will bring you comfort when you decide to move in.
  3. Make sure that the house is clean. Choosing clean house will impact your health and your family’s. If you find any junks then you need to reconsider renting the house. If the mess is fixable then you ask the owner if it can be fixed before you decide to rent the house and move in.
  4. Check the ventilation system. For the sake of your healthy and comfortable living, it is important to inspect. Proper ventilation system results in better air circulation in the house. If there is problem with the ventilation system then you can ask directly the owner and find the solution.
  5. Not only the interior of the house should you inspect but also the exterior. Make sure that you are satisfied with the exterior as well as you are with the interior. Ask the owner if you can adjust the exterior to your liking. Check the car parking area to see if its security system is well protected. That’s how you do when attending property open house.
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What You Need to Know About Property Development

Property business is widely ranged into different branches and categories. One of them is property development all is also called real estate development. This is business process involving necessary activities such as renovation, re-lease the existing buildings, or buy raw land in order to sell it to gain more profit later on. In these activities, the one who is responsible is called as property developer. They can work in person or in team. If the business grows well, there is possibility to start building real property development company.

However, it is also common for people to mistaken property development as construction because it’s not the main idea of this term. Property developers do the process of construction but it is not the main activity and only part of various processes within. You must be curious of why choose this path of career in property business. Well, here are some reasons on why this business is promising:

  • The main goal of this business is to get money. However, this business is also a way for you to save money. Since your project could cost 20% below the market and the profit is promising.
  • You will get better return for the rental and this is good news because then you will be able to to pay the mortgage.
  • This is a better choice if you aim for easier finance since it provides better leverage.
  • The tax benefit of this business is great especially from new property.

What to do in property development?

If you have decided that this business is promising to get you better future, then you need to figure out next actions to take. Here are some tips for your easier starter:

  • You will need to talk and ask for help from important people. You can call as team member. Those are real estate broker, finance planner, lawyers, accountants, architects, engineer, building contractors, marketing planner, project manager, and construction manager. Those are absolute members you will need to run this business.
  • Make a clear finance limit so you know exactly how much you can afford to invest in development project. You need also find a way to get your finance. You may need to contact banks or lenders.
  • Next step is to find ideal property. To get this right, location is always the first priority. The better the location, the greater the profit you could get. You need to set your target as well. For example, you set family as your target so you will consider building more bedrooms to accommodate their needs.
  • The next step is the most challenging because you will get to the real action started from purchasing the property to completion of the development process. This requires many steps but if you do them right then you won’t face any hassle.

The next step of doing property development is to decide your completed development property either to sell it to get higher profit or hold it on as your investment.

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What You Need to Know When Working With Real Estate Agent

For those who have no relation or experience to property business may have difficulties understanding some procedure of buying or selling properties. Thus, it is helpful to understand more about working with real estate agent. There lots of occasion when agent are offended by their clients because the cross the line. However, it is also understandable because not everyone is aware of real estate etiquette.

If you are going to hire real estate agent, it is better for you to know how to work with them so your business will go smoothly without clash or misunderstanding.

  • Real estate agent work independently which means they do not work for public service. Don’t expect them to work for free. They usually work on commission. When they close the deal, they get paid.
  • Real estate agents usually work for more than one client so they tend to be busy. Thus, make sure that you make appointment to be valuable and worth the time. Respect their schedule and don’t be rude by cancelling the appointment or reschedule it on your own. Inform them if you’re going to come late or cancel beforehand.
  • It is important to choose the right agent and not the best one. It is necessary to have interview session if you choose to working with real estate agent. Make sure to choose agent who is capable in their job as well as comfortable to work with.
  • Understand that agent has their own specialties. There are agents who work specifically for the seller and called as listing agent. If you are going to sell your properties, hire listing agent. If you are buying property, hire buying agent. There is also dual agent but most people choose to hire agent for specific task either to help selling or buying property because the possibility of conflicting interest is higher for hiring dual agent.
  • If you hire real estate agent to buy property like house, it is better to ask for their escort when it comes to attending open house. It is highly recommended that you let your agent do the job of asking important questions to the seller or their representative. You agent know what to ask and not to ask so you will be on the benefited side.
  • Make sure that you understand the contract before you sign it. Ask your agent about everything you need to know such as contract releasing rules, etc. By signing a contract with your agent, you both have your goals to be respected.
  • It is recommended to ask for agency disclosure if you are a buyer. Then, always inform your agent about everything you need or how you want them to communicate with you. Don’t hesitate to express your displeasure if you experience it.
  • Make sure that you hire real estate agent because you are ready. For example, don’t hire and sign up a contract with real estate agent if you are not ready to buy or sell property. That’s how working with real estate agent supposed to be.  
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