Investment Property: (investment properties) What It Can Do For You
No commentsBy Jerry Glynn
For many years now, investment property has been on the rise as a popular means to attaining wealth by many people all over the world. The purchase of a home is of course one of the first major investments that many people make, with the purchase of a second piece of property being the next. In fact, this move is often undertaken before the purchase of shares and other assets are even considered.
Before we go into the various aspects of investment property, a definition of the term would be in order. Investment property is the term used to refer to a piece of property that is not meant to be occupied by the owner, and is instead purchased with the specific goal of generating profit by way of rental income and/or the gaining of capital.
While we mentioned earlier in the article that most people’s first real estate investment is usually their own home, this does not always have to be the case. In fact, buying a modestly sized house or apartment in an affordable area to rent out can be a good way to build up some funds in order to purchase your own home eventually, in the specific place where you want to reside. More and more people all over the world are going for this option nowadays by renting property in a more affordable area, and purchasing and renting out another piece of property in a more expensive area. Other people are even expanding their investments into non-residential properties by way of property trusts.
Investing in property sensibly actually has a number of other benefits, not the least of which is that property tends to be less prone to market fluctuations than shares (although this is not always the case), and they are generally regarded as safe options when other assets decrease in value. Property investments also have great potential to generate capital growth and increase the value of your assets, and there is of course the rental income to consider as well. In addition, there are certain tax benefits that you can realize from negative gearing.
Just like any other investment however, investment property does not come with any solid guarantees. The prices of property does go up and down from time to time, and it can be quite a challenge to find good renters who will pay their bills on time and take good care of the property.
Furthermore, there is a need for people who are going into investment property to be thoroughly aware of interest rates and how higher rates will impact on their expected returns. They also have to make sure that the return or yield from their investment property measures up favorably compared to the returns that they would have achieved if they had invested in shares, for instance.
Of course, this is not to say that everyone should be directly involved in investment property. You can for example, go into partnership with other real estate investors and combine your assets into managed funds that will focus on property
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Real Estate Training - Why Train?
By Peter Vekselman
To train or not to Train? This is a question answered in today’s economy. Real estate training is just like any other type of training. You need to be prepared for what often amounts to a battle of wits in the real estate game. It does not make sense not to have some sort of real estate training before embarking on real estate ventures.
As the housing market spreads its virus into other areas of our economy, we see the importance of proper training in the real estate market. Investors make up about 30% of all foreclosures in America. This is greatly due to the increase in people getting into the business of real estate investing.
A lucrative business in real estate is very possible, especially now. As the misfortune of people losing their homes continues, so does the opportunity to buy at inexpensive prices. It is truly a buyer’s market; however, there is still much to learn about the buying process.
Where do you buy and why? Will the home need major repairs? How much will repairs cost? What kind of mortgage should you get? Should I get a mortgage? How much am I saving on the actual value? What is the actual value? The list of question a person needs to know goes on and on.
For years, experts have been pointing to risky avenues to profit on real estate and for the most part, their views were inline with real estate investing; however, too often they specialize in one or two areas and leave voids in their lessons. The problem here is that in order to be a successful real estate investor, you must have a full view of all aspects of the business. While real estate investing is lucrative, it is not to be mistaken for an easy ride.
If you are going to get into real estate investing, and it would be a great time to do so, then I suggest that you find a trainer that knows the full gambit. This does not mean he has to be an expert at it all, but have a solid understanding in all aspects. You must be afraid of trainers that say, well, I let my partner take care of that part of our investing. Another line to run from is, I don’t even care about that part, as long as I can do this.
So, do your homework on the trainer before you sign up, but by all means, get trained.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals, owned a construction company, been a private lender, and owned a property management
company. To learn more about Peter please visit
http://www.coachingbypeter.com.
Getting Repairs When Living In An Apartment Rental
By Christine OKelly
When living in a real estate rental, things will break, either by accident or due to general wear and tear. Since you can’t go back and “unbreak” something, you need to seek repairs. The problem is that in an apartment rental, it is often unclear who is responsible for paying the bill: the renter, the property manager, or the property owner. This article will help you know what to do to get the repairs you need and what to do if the property manager refuses.
Where Exactly Is The Damage?
If the damage is outside of your apartment rental and was not caused by negligence or accident, report it to the property manager for repairs. In this situation, the landlord should pay for the needed repairs. If you, as a renter, caused the damage, you should pay for the repairs, but it depends on your rental agreement. Repairs needed inside of a real estate rental usually follow the same guidelines as repairs needed for the outside of a rental.
How Long Should You Wait For Repairs?
The amount of time appropriate for a property manager to make a repair is dependent upon the type of repair needed. If it is a necessity repair, such as repairs for heating, sewer, or water, it is considered an emergency and should be completed immediately. The property manager is also usually required to pay for any apartment rental cleaning needed due to the mess created by the emergency. If the repair is minor and does not affect a necessity, the landlord has a reasonable amount of time, usually 30 days, to make repairs.
What If The Property Manager Refuses To Make Repairs?
Never hold or refuse to pay your rent. Most people don’t realize it, but this is illegal. You must notify your landlord in person and by mail (certified with a return receipt) so you have proof of notice of the repair in case you have to go to court later. Keep a written 30 day deadline, detailing the daily happenings regarding the progress of the repairs.
If the repairs are not made within 30 days, you can put your rent in a rent escrow account held by the courts as you consult an attorney about the situation. You can ask the courts to release you from the obligations of your rental lease or contract you signed when moving into the apartment rental so you can move to another real estate rental, especially if the breakdown violates the terms of the contract. Many times in a rental contract, a renter has the right to set a limit of 21 days with the option to terminate the rental agreement if the repairs are not made by the 30th day. The best way to know your rights is to consult an attorney.
Most of the issues arising during the repair of a real estate rental usually occur because the parties are not aware of their obligations and rights. If you have a good attitude, are honest, and educated in approaching the situation, you and the property manager can avoid any problems when it comes to making repairs.
Christine O’Kelly writes for Chicago Beal Properties. With 80+ years experience as a property manager and real estate rental company, Beal Property, LLC offers an apartment rental in many of the city’s historic neighborhoods.
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Sunday, November 23rd, 2008 at 6:50 am and is filed under realestate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
