Real estate investment basics

By Properties mls

As a true asset class, ideal for diversification as well as in optimising returns, Indian real estate made its mark from late 2006-2007. The lowest period in that respect was probably 1995.

Perceptions about investing in real estate have changed over the years. With real-estate markets becoming increasingly vibrant, and with increasing institutional participation in this market, increased investor confidence and increased investments in the sector emerged together.

With increased buoyancy, the real-estate market now falls in the same league as stocks, bonds, mutual funds, gold and commodities, and insurance policies as a viable investment option for investors in all categories – individuals, corporates, and funds.

Let us assume that a property costs Rs 100. This represents a loan component of Rs 85 and a net investment of Rs 15. The basic appreciation of property in most cases is 15 per cent. Assuming that the loan was availed of at an interest rate of 12 per cent and the holding period is two years, the net profit would be Rs 7.9, representing a return on investment (ROI) of 26 per cent. Add to that the additional benefit in tax benefits on deduction of interest paid and repayment of loans from gross income. This increases net returns commensurately.

Office and retail space is among the most interesting investment option available for bigger investors. Here, an investor buys a property and lets it out to a company or a retailer. It earns regular rental income and carries the benefits of price appreciation too. Rental income can range between 11 per cent and 12 per cent on investment, and there is room for capital gains. Again, investors are able to leverage much more efficiently by using Lease Rental Discounting (LRD).

The only risk that a small investor carries while investing in individual properties is the risk of concentration of assets in single or few cities, or single or few asset classes.

For example, if one buys a house in Mumbai or Pune and there occurs a residential market slowdown, one faces the risk of capital depletion.

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Los Angeles Real Estate Market Woes

By Tony Wynn

According to a recent article published in the Los Angeles Times, real estate prices are expected to drop across the board in California . In 2008, the California Association of Realtors forecasts that the median price of existing homes will decline 4 per year. The glory days seem to be over as the market readjusts to general softness in home sales. Even though home sales experienced a downturn of around 23 to a record of $576,000. It comes down to another fundamental lesson in supply and demand. The housing market simply is not immune to general principles of economics, as the supply of new and existing homes in California as of August 2007 reached a surplus level where it require around 12 months to exhaust the supply (assuming no additional houses came on the market). The effects of this surplus are beginning to directly impact home prices to the chagrin of sellers. With so many houses on the market it is more and more difficult for sellers to find a buyer.

What does this mean to potential buyers? Potential buyers should look for a decent deal if they are looking to buy a home at this time. Additionally, if a buyer is thinking of buying a house now and reselling in a year or two they might reconsider. While prices might be up in 5 or 10 years it will probably be difficult to sell for a profit in a year or so. What does this mean for sellers. First off there are a lot of homes on the market so it’s a good idea to make sure your home is presentable. Also now is not the time to play hard ball with buyers. I have seen sellers lose a deal by quibbling over the closing date and other such issues. While at the height of the market sellers could be safe in knowing that another buyer would come along shortly. But now sellers should remember there are a lot of houses on the market so a buyer has other options and it might be some time before another contract comes along.

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Slovenia Property - An Investment for Long Term Growth

By kelly Price

Slovenia property for sale is becoming popular with overseas property investors looking for overseas property investment. Slovenia property investment has become more popular than ever, since Slovenia was named in the top ten countries in the world in terms of property investment - with forecast growth of up to 280% over the next 10 years.

The reasons behind the growth in Slovenia property are outlined below:

1. EU Membership

Slovenia is a recent member of the European Union joining in 2004. New EU membership normally sees an increase in investment from the community itself and from other countries.

Slovenia has benefited from an influx of capital from the EU itself and private investment. This investment has seen Slovenia achieve the highest economic growth rate of any new EU member state.

2. Strategic Location

Slovenia is located at the centre of Europe and has borders with Austria, Italy, Hungary and Croatia.

It sits between the old established economies of Western Europe and the new emerging economies of the east. The country has also has an efficient infrastructure and good transport links with its neighbours.

3. Rising GDP and Disposable Incomes

As GDP has risen, so to has the demand for high quality housing and this has led to a property boom. One of the most popular places to buy Slovenia property for sale has been the capital Ljubljana, where prices have been rising at up to 30% per annum.

The stringent land development laws have meant that supply has been unable to keep pace with demand and prices are rising.

Ljubljana is not the only area to see Prices rises and many other destinations are starting to take off and show solid growth in terms of capital appreciation and rising rental incomes.

4. Tourism

Slovenia may only be a small country about the size of Switzerland but it has diverse and varied scenic beauty which includes:

The soaring mountain peaks of the Julian Alps, fairytale alpine forests, a beautiful stretch of Adriatic coastline with the pretty town of Piran, rolling hills, and valleys dotted with vineyards, as well as rivers and lakes and bustling cosmopolitan towns.

Slovenia is only now starting to spend heavily on its tourist attractions and it looking to increase the number of tourists dramatically.

With budget airlines now offering cheap flights to the country it's more affordable than ever.

Slovenia is popular with skiers and Slovenia is actively promoting this industry as well as to overseas visitors, to enjoy the scenic beauty of such places as, the Soca Valley and Lake Bled.

With the expansion of the tourist industry comes a demand for high quality accommodation.

This offers potential capital growth, as well as valuable rental income.

The key to any property investment is to visit and get a feel for the area before buying.

There are many specialist estate agents dealing in Slovenia property for sale which cater to overseas buyers.

The buying process is straightforward and local finance options are available and the whole process should take around a month to complete. Slovenian law protects both buyers and sellers.

This ease of purchase when buying Slovenia property is in contrast to some of its neighbours.

A Solid Long Term Investment

Buying Slovenia property for long term investment looks attractive:

You have an economy that is booming and an increase in tourists - which should rise for years to come, as more people discover the delights of this small, beautiful country.

Consider Buying Slovenia property and you will find it has a lot to offer any serious overseas property investor.

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Tips for Luxury Home buyers in Southern California

By Ron victor

Today each and every real estate market is very different, so buying a luxury property is must be exciting, but you need to know more about the real estate market before you buy a property. Looking for a new house in Southern California's luxury real estate market is quite thrilling. With an incredible climate and several amusing places to live, one should first decide where you are looking for a home; whether is it near a beach or near the city or perhaps on the hills. Next important thing to consider is what sort of luxurious facilities you would like in your house and the price. You should be ready to spend in millions. People who are interested in buying luxury houses frequently look for facilities in their house that reflects a posh and relaxed lifestyle. It basically includes; home theaters with large plasma T.V, gourmet designer kitchens, wine and champagne cellars, costly and high security systems to protect their dream home and comfort for the pooches. They also look for costly and cozy furniture, beautiful interior designs, decorations, lovely garden with a fountain and an amazing swimming pool.

If the price is not a matter for you, then what you’re looking for entirely depends upon your lifestyle and taste. Sources show that there is a key concern for Southern California luxury homebuyers who are looking for ‘designer’ kitchens. Other top-rated features include; an entertainment room with home theatre, luxury bathroom with steam and massage, gym with all high-tech equipments and a leisure room.

Some useful tips to make your search for luxury homes easier: Inspect your electricity bills as electricity is very expensive in Southern California. Always choose a real estate advisor who is professional in Southern California marketplace, they need to have sold lots of houses, should have concrete references and a successful records to verify this. Get to know what you can afford and make sure that your real estate agreement has all the necessary information. Remember that brilliant garden statuette that you saw when you first visited the house now may not stay there. Make a little title search before closing and purchasing title insurance. Buying a luxury house is a huge investment. So this requires lot of time and efforts. Browse the internet to look for more information such as crime rate, libraries, hospitals, etc… Hope the above tips might help you finding your dream house in Southern California.

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Buy My House- Please

By Webmaster ibuyhouses

Selling a house can be a tricky proposition and many people will find themselves lingering in their old home long after the time when they are ready to move onto their new one! There are many reasons that you might not have been able to sell your home. Maybe you’re not sure how to market it, or perhaps you’ve come quite close several times but when potential buyers realize something about the structure of the home or about the shape it’s in, they balk. Remember that the longer your house stays on the market, the longer you will be unable to move forward with your own move. When you are trying to sell your home, nothing is more demoralizing when you believe you might be very close to closing a deal but then the buyer backs out at the last minute.

If you are tired of the mess that comes with trying to sell a house, a real estate investor might be able to solve many of your problems! A real estate investor will be able to give you a yes or no much more quickly than the average buyer, and this efficiency is their key advantage over other buyers. If you are tired of trying to sell your house and tired of haggling with prospective buyers, call a real estate investor to see what he can do for you today!

There are several reasons why a real estate investor might be the ideal solution to your problems. First, a real estate investor has a totally different interest in your house than most people will. Most people are looking to move their families in, and thus they will have many more concerns that need to be considered. They need to consider the local schools, the neighborhood, the convenience of the location to their jobs, and much more. A real estate investor, on the other hand, will be able to look at your property and tell you whether or not she wants to buy it in very short order.

A real estate investor is not interested in living in the house, but rather in turning it over to make a profit. Because they have a great deal of experience in buying and then flipping houses, they will be able to identify what it is that makes your house saleable and what they need to fix in order to sell it themselves. Because of this, there is a good chance that things that need to be fixed when you were dealing with families or couples will actually make the property more attractive to real estate investors. "May someone sell my home?"

Similarly, real estate investors tend to be one-person operations, or at least, only one person makes the decisions on house-buying. How many times have you had one person in a couple completely in love with the house, but the other is dead set against it? When you are dealing with a real estate investor, you will be dealing with one person, and that will take a lot of the stress out of the negotiation. Dealing with a real estate investor can also be advantageous when you consider that they may be willing to overlook flaws in your house, as they have every intention of fixing it themselves.

With a real estater investor, you will no longer have to show your home to potential buyers. You will no longer have to deal with the scheduling and the phone calls and the viewing, and you will no longer have to answer the same questions over and over again. A real estate investor can tell you in very short order whether or not he wants the property and then he will be able to make an offer. A solid offer can be a relief after haggling with prospective buyers and more often than not, you’ll find the first offer to be quite fair.

When you are trying to get out of your house, every setback can seem enormous. The closer you get to selling your house, the more frustrating it is when buyers back out at the last moment. If you’re tired of dealing with buyers and want to get out, call a real estate investor and see what they can do for you!

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Hyde Park: An Austin Original

By Dane Smith

Imagine a neighborhood of adorable medium houses seated comfortably on shady streets lined with trees. But then splash a rainbow across the entire area. That could get you close to what the Hyde Park neighborhood in central Austin is like. This old part of town has a lot of history, and was one of Austin's first developments north of the Capitol. Many of the houses are over fifty years old, but are lovingly cared for by tenants and successive owners, often with a heavy dose of their personality thrown in for good measure.

Spanning the area from Dean Keaton street in the south to around 45th street or so to the north, and from I-35 to the east and Guadalupe street to the west, Hyde Park is a fairly large neighborhood. As it is located comfortably between many of the major thoroughfares in Austin, Hyde Park has long been a staple area for college students at the University of Texas, which has contributed heavily to the area's looks and atmosphere. Many of the houses are painted exuberant colors with eye-catching designs and artistic sensibility, a legacy of many resident's desire to "keep Austin weird." This also contributes refreshing diversity when compared to the cookie-cutter houses that so many other neighborhoods primarily consist of.

The biggest advantage of owning a house over an apartment or condo is the lot on which it lies, and Hyde Park has this attribute in spades. While many of the houses are modest in size, with most in the 1-to-2 bedroom range, the expansive yards more than make up for it. With more privacy and more space, Hyde Park houses are cozy and comfortable. The larger back yards also lend themselves to Austin ingenuity, with expansions, garage apartments, and other conversions being common. This also contributes to the value of each house without changing its character.

And what character! Most of these houses were built in a time when different trends were popular, and these designs have often proven to endure to maintain their popularity in a way that more modern houses cannot. While most houses built in recent years have good design behind them, one often gets the impression that a house is devoid of personality and designed to be as inoffensive as possible. While this approach is safer for an architect, it makes houses like those in Hyde Park that much more desirable. Some features that were often viewed as necessary in years past have either become unfashionable or become viewed as excessive, such as high ceilings and large porches.

However, these aspects of houses are very important to many prospective homeowners.
This is evident by the continued value of the neighborhood over many years. Many houses in Hyde Park have higher ceilings than newer houses, especially because many are one story. This contributes to a feeling of space that many newer homes lack. Hyde Park houses also often have a disproportionately large number of windows, which provide increased sunlight and adds to the increased sense of spaciousness. The characteristic large porches also make the homes seem cozier, more inviting, and help to connect neighbors. I personally think one of the best benefits to having a house over an apartment is having a large porch on which to relax, and this seems to be an attractive attribute to many potential homeowners as well. So, with these positives in mind, I encourage you to check out Hyde Park if you're looking for a home in Austin. I don't think you'll be disappointed.

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