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Invest in Australian Real Estate
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How to Invest in Australian Real Estate

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No one can deny that real estate is a good investment. However, like any investment, you need to research the field before you buy a property. Even if the interest rates are rising, using a sound strategy can reap you dividends.

Commit Yourself to a Long-term Strategy

With prices rising in most markets and a shortage of rental homes, you can still see high returns if you are perspicacious enough. Before making an investment though, you need to commit yourself to a long-term strategy. This way, you can realise a better outcome. The housing market is defined by low, highs, and steady flows, all which are cyclic. Therefore, you need to feel comfortable about what you borrow, and plan your financial goals accordingly.

For example, if you are interested in securing a rental property, look at the property’s history. Some properties have long and steady tenants, while others do not have this type of stability. That means investing in a rental property requires an adequate cash flow. That way, you will have enough money to cover any outgoings, besides the financing. This is important to keep in mind, particularly if your property stands empty for any period of time.

How Your Investment Can Impact What You Pay in Taxes

You also want to keep one important fact in mind: any repair or maintenance costs, plus interest, can be deducted on your taxes. Therefore, you can make use of either positive or negative gearing. For instance, positive gearing means your annual rental income is higher than your costs and loan repayments. While you will earn additional income, it also is taxed. In addition, you need to include the capital gains tax if you decide to sell the property.

According to Prudential Real Estate specialists, negative gearing means that the costs, fees, and repayments for your loan are higher than the income you’ve received in rentals. When this occurs, you can offset your net loss against any earned income. As a result, you can lower the tax that is payable on the other income.

The two examples mentioned above show why real estate is one investment that can assist you in making the most of your tax expenses. In order to take control of your investment objectives, it pays to be informed about the various facets involved in this type of investment. Stay current on property trends and values whilst also staying up-to-date on what is happening in your local marketplace.

Work with a Real Estate Professional

In order to find out more about the areas in which you want to invest, it helps to peruse property-related content from real estate research companies. In addition, align yourself with a real estate salesperson who is well-versed in the local landscape.

By working with a salesperson, you can obtain more information about an area’s median rental yields and what is planned for a community’s infrastructure. In addition, a salesperson can clue you in on the price growth for specific properties. When you invest the time to learn more about your real estate market, you will also realise larger future returns.

Investing in New Property
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Investing in New Property – What You Need to Know

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There are plenty of complications and caveats involved in purchasing a new piece of property, which is why buyers have to be very careful. If you are interested in buying a new home, whether to live in it or just to buy as an investment in the future, you have to take many things into account. As an investor, your primary aim should be to purchase the property when the project is still under development. This way, once it has been completed, you can then sell off your property at a premium and generate a hefty profit. There are many things that you should know about investing in a new estate. Here are some main things that every prudent investor should keep in mind.

Work with a Reputable Real Estate Agent

If you want to buy a new property in Seremban, the first thing that you have to do is to look for a reputable real estate agent. A reliable real estate agent can help you in finding the right properties depending upon your budget and your investment criterion. You can search for local real estate agents in the area and discuss your investment ideas with them. The agents will ask you about your budget as well as whether you are looking to buy property in the local markets or wish to make an international investment.

The international real estate market now poses to be a desirable option for most people. Places such as Seremban have plenty of new real estate projects under development, most of which are looking to be a profitable proposition for foreign investors. You can buy property at a resort hotel or any other development project in places such as Seremban.

Making a Purchase

Once you have scoped out some potential properties and are now interested in making a purchase, you will need to check for the legal title of the property. It is essential that you confirm the legal title before transferring the funds. If you are buying property overseas, it’s highly recommended that you visit the place in person and not just believe the pictures that are shown to you. Even though many projects have fully fleshed websites that show numerous photos of the latest development on the project, it’s better to visit the place in person to see the development work for yourself. In this day and age, where real estate fraud is rampant, it’s always better to be cautious and check everything for yourself before you go ahead with the transaction. These are some necessary things that you should know about investing in new property.

Investing in Oklahoma Real Estate
Investing,

Investing in Oklahoma Real Estate

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Everyone is looking for a way to make more money. Some people play the stock market, others buy and sell items of value. Over the years, real estate investment has proven to be an excellent investment, especially if you do your homework and are very patient. There are opportunities for you to lose your shorts, too, but if well researched, real estate can be exceptionally profitable. You can purchase property to live in and hope that it appreciates over time; you can buy a home to fix up and flip, or you can buy a place to rent out for additional income. Determining what kind of property you want and its intended use will help you make some very important decisions, ones that can make or break your investment.  We reached out to a property management group in Oklahoma (http://www.energypmokc.com) for some feedback and this is what we came up with.

While everyone would love to own something that appreciates by the thousands in a short period of time, that scenario just doesn’t happen that often. If you were lucky enough to get in on the ground floor of some property in New York or California and you held on to it, you have probably made a pretty penny over the years. Homes in Southern California that were purchased in the 1970’s and 1980’s for under $100,000 are well over a million dollars today, but in most cases, it took thirty years to appreciate to such a level.  Additionally, it is unusual for a property’s monetary worth to grow so much, but if you know where and when to buy, there is ample opportunity to make some money.

Once you know what type of property you want and its potential usage, you need to narrow down the most important aspect of any home purchase: location, location, location. An untapped locale that is brimming with potential is Oklahoma. While Oklahoma may not be the first state that pops into your head when you think of “investment property”, that is precisely one of the reasons it is the perfect choice! Oklahoma City ranked in the top fifty cities in the United States based on livability, economy, and affordability. If you’re looking for a long term home for you and your family, Oklahoma City offers great schools, and while the housing market lags behind the national average, the number of quality jobs is substantial. An average home in Oklahoma City will set you back about $150,000; substantially less than the national housing average. This is advantageous if you are looking to make this area your home; the possibility for growth long term is great. People in Oklahoma spend an average of 7 percent of their income on housing where the average for the rest of the country is 15 percent, making the affordability factor for young families very appealing. Over the past nine years, homes in Oklahoma City have appreciated each year, building a slow and steady equity for their owners. While it may not be a “get rich quick” deal, the return on investment is definitely there.

Oklahoma City also has seen an influx in its economy and job market, making an investment in real estate a solid one. With the recent election of a Republican president, the oil industry has seen a resurgence which equates to more homes sold in the area. Unemployment in Oklahoma City is almost two full points lower than the national average and there is expected job growth in the city, as well. With homes appreciating about 2.5 percent per year, it’s a slow profit, but it’s a profit, especially if you are living in it and earning the equity and are in no rush to cash in. These factors bode well for someone looking to purchase a home in Oklahoma City and many of its surrounding cities.

If the real estate market in Oklahoma appeals to you, but you’re not quite ready to call it home, or, you already live there and are interested in cashing in on the explosive market, purchasing distressed homes and rehabilitating them might be the answer. “Flipping” homes, or finding a home that is under the market and fixing it up for a quick sale has become a big business. It’s not unusual to turn on the TV and find someone rehabbing a home for a substantial profit, but be forewarned; it is not as easy as it looks on TV. If you purchase a distressed property, even for a paltry sum, the money you may have to invest to make it livable may be more than its overall worth. There are always delays and surprises that arise as well; a successful flip takes time, money, reliable workmen, and knowing the market. While a flip can reward you with a nice lump sum at the end of the process, it is not always easy getting there, and the potential to lose money is always a possibility.

Many of these distressed homes are from foreclosures, where the mortgage owner couldn’t or wouldn’t pay the mortgage, and the home gets sold back to the bank. The bank doesn’t want it, but they don’t want to lose money on the home, either, so they look to sell them, often to investors. Many homes go to auction and the bids can start low and jump up, depending upon the popularity of the property. The median price for a foreclosed home in Oklahoma City runs around $58,000, so the profit potential is great if done right.

You could also purchase a home and rent it out. While it is not a quick buck like flipping a house, you can build equity in a house, have someone else pay the mortgage and maybe even earn some additional funds each month. While there are many benefits to buying property and renting it out, there are also some drawbacks: if you don’t live in the same town, you will need a property management team to ensure the house is well cared for, and that will cost you money each month. Additionally, if you don’t have a property management team and you are the landlord, you risk renting to someone who may not care for your home. You are also responsible for any expenses associated with the house while the tenants live there, and it can add up quickly.

If you are not comfortable flipping a home or buying a rental property because you don’t have the available funds, you can try crowdfunding. Crowdfunding involves several people getting together and each investing a smaller amount for less risk. The rewards are a lot less, too, but it is a way to make an investment with less liability.

Oklahoma offers excellent opportunities for real estate investments based on the economy, availability of inventory, the up-and-coming job market, and affordability. Speak to a reputable real estate agent to start your search!