The real estate market in and across the United States of America is as varied and expansive as the country itself. Although the age old adage comes off a bit trite and certainly overused, when it comes to real estate investment and other real property purchasing opportunities in the United States, there actually is something for everyone. There are many different opportunities available to the savvy shopper.

Investment Property in America

In the 21st century, an ever growing number of men and women are electing to make the purchase of investment real estate in the United States. This includes both residents of the U.S. as well as people living abroad who wish to become a part of the generally burgeoning U.S. real estate marketplace. As a general rule, people who are snatching up investment property in the United States are doing so in three different arenas:

First, investors are electing to buy into commercial real estate holdings.

Second, men and women buying investment property in the United States are also spending a goodly share of their funds on residential rental property.

Finally, people who are purchasing investment real estate in the United States are putting at least some of their money into vacation types of properties.

Residential Real Estate in America – Single Family Properties

No where is the commentary that the real estate market in the U.S. is as varied as the country itself when it comes to the matter of residential real estate. Depending on where a person is interested in residing, in making the purchase of residential property, will dictate how much money will need to be spent on such a purchase.

In some cities in the United States — many of the major cities on both the east and west coasts of the country, for example — the prices of residential properties continues to increase rather dramatically over time. On the one hand, the ever rising cost associated with the purchase of residential property in some cities in the country is keeping some people out of the housing market all together. There are some cities in the America that are experiencing a flat housing market. In other words, the appraised value of real estate is remaining level and not increasing much over time.

Residential Real Estate in America – Apartments

In addition to stand alone, single family residences, the market involving apartments, condominiums and townhouses in many communities has become more active in the past five years. This has particularly been the case as the so-called “Baby Boom” generation begins to move towards the empty nest phase of their lives (their children have left home) and even towards retirement. As a consequence, people are moving towards purchasing apartments, condominiums and townhouses because they are more convenient and generally less difficult and time consuming to maintain. In many instances, these properties are also smaller in size than the typical single family residence.

The overseas buyers are also seen buying these types of property with greater frequency over recent years. In some instances, citizens of other nations are taking to the purchase of these types of properties in order to allow them the opportunity to have a second home in the United States.

Holiday Property in America

One of the most significant trends that has developed in regard to real estate in the United States in the past twenty years revolves around vacation property. In the 21st century, a growing number of people within the United States — as well as an increasing share of property owners from abroad — are investing in vacation and holiday property.

Investment in holiday property generally has been seen to occur in two different areas. First, people both in and out of the United States are making purchases of second homes or vacation homes for their own usage. (In some instances, these people do turn around and rent or lease out their vacation or second homes to other people during those segments of the year when they are not using the property personally.)

Second, men and women residing inside and outside of the United States can also be found investing in time shares in record numbers. A time share situation is one in which a person buys “time” in a piece of real estate. In other words, they are buying an interest in a particular piece of property that interests the purchaser during a specified period of time each and every year.

Mortgage Options

When considering the options for a mortgage on your overseas property there are a couple of choices to consider;

1. Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.

2. Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than our current UK interest rate. Most overseas mortgage / bank lenders will require upto 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Check out our Foreign Currency page to see how you can save money in this example

3. Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final descision.

For more details on Mortgages in America visit our Mortgage page in the American section on our website.

Specific steps to buying real estate property in America

A person interested in making the purchase of any kind of real estate in the United States needs to give serious consideration to engaging the assistance of a qualified and licensed broker or of an equally qualified real estate service that has been established to service the needs of those people seeking to purchase investment, residential or vacation property within the U.S. When shopping for real estate in the United States, a buyer needs to keep in mind that the agent or Realtor works for the seller. The real estate agent or Realtor is legally obliged to protect and further the interests of the seller.

In addition to engaging the assistance of a qualified broker or real estate service, it is also important to note that the real estate markets found across the United States vary significantly from location to location. As a consequence, a person looking to buy real estate in the United States will want to make very certain that he or she has resources that are specifically knowledgeable about the real estate market in a particular region of the U.S.

One step that a person interested in buying real estate in the United States will want to consider taking up front is obtaining a financing commitment from a bona fide lender before beginning the search for specific pieces of real estate. In recent years, in the United States, lenders will extend mortgage facilities to people interested in purchasing real estate (provided that they are credit-worthy) in advance of identifying a particular piece of property for purchase. By having such a lending commitment in hand, a person looking to buy real estate will be in a better position to more efficiently and effectively procure real property in the least amount of time.

When making the purchase of real estate in the United States, the general practice and law in most states is that a purchaser accepts the property in the actual condition it is in at the time of the contract for sale is executed. In other words, a buyer generally buys the property in the condition it is in and cannot complain about significant defects after the deal is closed between the buyer and seller. (The one caveat is if the seller willfully and intentionally withholds material information about defects or problems of a significant nature associated with the real estate.) As a result, it is imperative that a buyer makes certain that the property is closely examined for flaws and defects before a contract for sale is finalized and certainly before the closing date on the transaction.

Once a particular piece of property has been identified for purchase, a contract is then drafted. In the United States, real estate cannot be sold in the absence of a written contract. Often, when residential real estate is sold, a standard form of contract is utilized to memorialize and effect the sale. However, if a person is making the purchase of investment or commercial real estate, more often than not a specific and individualized contract is created for the transaction.

When the contract is signed by the parties, a closing date is established. In the U.S., the closing date is the date on which all of the duties and obligations under the contract need to be satisfied — including the obligation of the seller to make certain that the title to the real estate is “clean” and including the obligation of the buyer to make certain that his or her financing is in order.

Generally, a closing date is set approximately 30 days from the signing of the contract for sale. However, there is no hard and fast rule pertaining to when the closing is to be held. The closing date is established between the parties to the real estate sales contract.

One of the items that a buyer will want to make certain he or she obtains after the contract is signed and before the closing date is title insurance. Title insurance will protect the buyer of real estate should a situation arise in which the title to the underlying real estate ends up being clouded. A clouded title is one in which another person or entity ends up having an interest in real estate that may not have been found or properly disclosed during the time period between the signing of the contact and the closing of the sale itself. For example, a prior lender may have a lien on the property that for some reason was not discovered. While such an encumbrance on the property’s title should have been discovered, there are countless examples in which mistakes occur and liens and other interests in a particular piece of real estate are not discovered. Again, title insurance protects a buyer of real estate from any expenses or loss that he or she might experience as a result of a defect in or cloud on the title to real property.

In most jurisdictions in the United States (but not all) local units of government assess property taxes on real estate. If a person is making the purchase of real estate, he or she needs to understand that they are likely to be responsible for paying a pro rata share of taxes that will be due and owing for the portion of the year of the purchase during which the buyer actually assumes ownership of the real estate. Often, the taxes will be due to be paid at the time of closing to avoid any problems between the buyer and seller in the future.

Additionally, insurance on the real estate needs to be in place to benefit the buyer on the closing date. A purchaser of developed real estate will not want to assume possession of the property without making absolutely certain that proper insurance is in place.

Property Abroad always recommends using a Solicitor or Lawyer

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Property in America – Guide to Buying Property in America

The secret to a successful purchase of property abroad lies in finding the right property in the best location and snapping it up at the lowest price possible, before it becomes common knowledge. It is clear that wisely selected overseas property can offer some very secure and lucrative opportunities. Whether your dream property abroad is a holiday apartment, town house, luxury villa or a plot of land, you should make research and dedicated carefully choosing investment plans for the purchase of your property abroad.

You can use the International Property Investment Network (IPIN), which helps all types of investors in their quest to access up-to-the minute information on the very latest investment opportunities in the worldwide property market. All discerning property investors realize the importance of taking advantage of the most lucrative real estate opportunities as soon as they arise, before they become common knowledge. As a FREE member of IPIN, you, the investor, will stay a step ahead while IPIN advises you of the very latest carefully vetted niche opportunities on the global investment property market today.

You should find out the following information before making overseas property investment:

· Full financial data on the country and hotspot including exchange rates, GDP, interest and inflation rates and tax rates.

· Full demographic data on the country and hotspot including population, population growth, unemployment rates and ethnic make ups.

· Specific property data such as Property prices and rental values split by property type

· A full description of the country and hotspot including political environment, social security info, languages spoken, customaries, restaurants and bars, leisure facilities, transport and road networks, future developments, estate agents and letting agents

· Weather data including number of hours of sunshine, days of rain per year and rainiest month with measurement.

After research you can see that MOROCCO is one of the new exotic destinations that Hot Spot have discovered recently. Morocco´s luxurious property developments are generally accepted to be of the highest standards available and very competitive prices allow Morocco to boast top quality property in 5 star luxury resorts for a fraction of the price of far less caliber property elsewhere. Morocco has attracted a great deal of media coverage with a large number of the world’s wealthy, including film stars and sports heroes, having already purchased property here; Richard Branson, Mick Jagger, Malcom Forbes, and even David Beckham have all purchased property in Morocco. Widely tipped to become the next elite holiday destination, Morocco property offers to the rest of us similar style to Puerto Banus, Monaco or St. Tropez at significantly lower prices. Moroccan investment property and apartments for sale can be found in Agadir, Asilah, Cabo Negro, Casablanca, Marrakech / Marrakesh, Saidia / Saida, Tangiers and Tetouan.

If you decided to make Morocco property investment, you should know about maximizing profit from an off-plan investment in Morocco

· Purchasing early

When the developer is offering units well below market value for the reasons mentioned above. In Morocco it is also important to buy as soon as possible as the market is in its early stages of development and prices are still very competitive but already rising. Investors who invest now will see the greatest profits.

· Purchasing the best units

Shrewd investors seek the earliest opportunity to purchase the most sought after properties on any given development. The best units always offer higher capital appreciation in the least amount of time and can demand the greatest rental income. Penthouses are often favorites.

· Price increases as development matures

As the development begins to be constructed, the value of the units rises. There is normally a completed show home at this stage and buyers are taking less of a risk as they now do not need to rely entirely on plans.

· Price appreciates as more units sell

As units are sold steadily, so the price of the remaining units will rise. This is due to buyers being able to see current units as mentioned above. Often a phase payment structure is in operation which mirrors the increasing value of the properties. Obviously, to the early investor, this means that should you decide to sell your property it will be worth considerably more at this stage than when you made your initial purchase and paid your 30% deposit.

After studying Morocco property investment you will know that King Mohammed VI of Morocco has a strong partnership with Dubai’s ruler, His Highness Sheikh Mohammed bin Rashid Al Maktoum and both share a vision for the prosperity of their nations. And Dubai is experiencing a phenomenal property boom after enormous amounts of foreign investment and a push to create an economy founded on tourism. The similarities between the two leaders and their dedication to driving their nations’ economy forward has sparked ideas that Marrakech could be to Morocco what Dubai is to the UAE.

Dubai property offers overseas buyers some truly exciting options. Prices are still very affordable and a fast growing Dubai property market is currently underway offering purchasers many strong investment opportunities.

Property is so much part of Dubai’s infamous growth that real estate investment here allows buyers a spectacular chance to cash in on high growth of an average 18% per annum (over the past five years) and typical rental returns of up to 12%.

Dubai is “the epitome of luxury and glamour” with some of the finest and most opulent properties in the world to be had. More international businesses are setting up base here and some ambitious tourist developments are underway, meaning there is no reason to think the state’s time has passed.

However, be warned that a good investment hotspot might not automatically be somewhere that a buyer wants to live and that rental potential, growth potential and price should be considered when purchasing a property.

International property is currently very popular investment. Luxury real estate can still be purchased at excellent prices and purchasers enjoy the exotic atmosphere, stunning natural beauty and variety chosen country provides.

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International Property Investment Hot Spots

Are you a rental property owner who is worn down by your property management jobs? Then read on to find out how to pick your perfect property manager who can help you manage both your tenants and real estate today.

What Can a Property Manager Help You with?

The following are the more crucial property management jobs that a property manager can do for you:

- Find new tenants for your rental property if it is unoccupied and screen any potential tenants by interviewing them and running credit checks.

- Help you maintain your property in habitable condition according to the local health and safety codes. This will include making any property repairs if necessary.

- Collect rent from your tenants and prepare an income statement of your rental property so that you can monitor how well your property is doing financially.

- Attend to any requests and complaints that your tenants may have.

- Handle any problems that are caused by nightmare tenants and evict them if needed.

How do You Pick Your Perfect Property Manager?

The first rule in hiring a property manager is to make sure that he is licensed by your local housing authorities. This is one way of picking someone who has at least gone through some formal basic training to watch over your rental property.

Just like any other employer, you should always interview your property manager before hiring them. During the interview, take the chance to ask him for his past experience and references for the properties that he has managed before. You should also give his past employers a call to ask them for their opinions on his skills as a manager.

Ideally your manager should have at least 3 years of experience in handling property types that are similar to yours. If you have a residential townhouse, his experience in managing commercial shop fronts may not be helpful because the difference in the laws and tenant’s needs.

Some real estate agents manage properties and tenants for their client part time. While their services may be cheaper, I will highly recommend that you choose a professional property manager because running a rental property demands quite a lot of skill and attention.

Should You Hire a Manager for Your Property?

If you own rental properties, you will know that being a landlord can be a full time job. While some landlords actually enjoy dealing with their tenants and property management jobs, others dread every moment of it.

If you enjoy dealing with people or is handy with property repairs, then you may want to try your hand at managing the property yourself first. That way you can see if property management jobs are your cup of tea and you can also save money at the same time.

Being a landlord is something that becomes easier with experience so if you have been managing rental properties for a period of time you can consider just hiring a property manager just to handle certain property management jobs. For example you can choose to handle any property repairs yourself while your manager takes care of the tenants.

On the other hand, some landlords see their rental properties purely as investments and do not want have anything to do with their day to day maintenance. If you are willing to give up about 5 to 10 percent of your monthly rent, then it makes sense for you to hire a property manager.

Hiring a property manager is highly recommended as well if you own rental properties overseas. Just the amount of money and time that you save on air travel will make it worth your while to hire a manager.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on property management jobs, visit his website today for step-by-step real estate guides, free resources and forms.

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For Property Management Jobs How Do You Pick the Best Manager?

Most countries tax non-residents on property in their country. Furthermore, most double taxation agreements between the country and the UK do nothing to prevent this. Consider these five categories.

1. Tax on property purchases (similar to UK stamp duty land tax). After over 20 years in the tax advice business, there are few things which still surprise me. One thing which does still amaze me is just how often people still seem to overlook the fact that the UK is not the only country in the world with taxes. Anyone who invests abroad has a potential exposure to overseas property tax. Wherever you buy, you will face overseas property tax. Foreign property taxes generally fall into five categories; tax on property purchases; annual charges; tax on income; tax on property sales; tax on death or gifts. It is interesting to note that all but one of these categories are likely to apply to a foreign holiday home owned by a UK resident and if the property is ever rented out, all five will apply. This just goes to show that, when it comes to foreign property tax, the investor and the holiday home owner have more in common than you might expect. Many countries impose a tax charge of some kind when property is purchased, usually based on the purchase consideration paid.

2. Annual charges (comparable to UK council tax).These come in many different forms and are often charged by local or regional governments. There may be an annual charge on property ownership on either a flat rate or linked to the property value. Additional charges sometimes apply to properties which are not the owner’s main residence. There may also, or alternatively, be an annual charge on property occupation – either at a flat rate or linked to the property’s value. Another common annual charge is a wealth tax. Many countries impose this charge on non-residents based on the net value of the property and other assets which they hold in the country. Where a UK resident suffers annual charges on occupation or ownership, these may usually be treated as running costs and can be deducted as an expense from rental income or trading profits for UK tax purposes. Such costs are only partly deductible where there is some personal use of the property. The treatment of wealth taxes is less clear. These are often regarded as a personal cost with no deduction available in the UK.

3. Tax on income (similar to UK income tax). Most countries will tax profits and income derived from property whether through letting, development or dealing. Rental income may either be taxed on an accounts basis, based on profits after certain deductible expenses, or as a flat rate on rent received. Where an accounts basis applies, each country will have its own rules regarding what expenses are deductible. Flat rate systems allow for little or no deduction of expenses. In many cases, the tax on non-resident landlords is a simple flat percentage of rent received and may have to be withheld at source (i.e. a withholding tax). Reduced rates of withholding tax often apply under double taxation agreements and must be claimed where available. Profits from property development and dealing are usually taxed on an accounts basis and sometimes also attract additional social taxes like the UK’s national insurance. For UK tax purposes, double tax relief is usually available for overseas property tax on property income or they may be claimed as a business expense.

4. Tax on property sales (comparable to UK capital gains tax). Having spent more than 20 years in the tax advice business and having dealt with many overseas property tax authorities, another thing which does still amaze me regularly is how often people seem to think that they can sell a property abroad and not face a tax liability on it. Wherever you sell, you can expect to face up to foreign property tax. Some countries charge tax on the gain arising when a property is sold. Many countries do provide an exemption for the owner’s main private residence although you will find that this is not generally available to non-residents. Properties held for longer periods are also often exempt. Many countries, like the UK, will treat profits derived from property sales by developers and dealers as income. Double tax relief for overseas property tax suffered on capital gains is usually available against UK capital gains tax. Tax on property sales is often overlooked by UK investors, and they do so to their cost.

5. Tax on death or gifts (similar to UK inheritance tax). Many countries do not have any death taxes but just as many which do. Generally, where there is a death tax, there will usually be a similar tax on lifetime gifts as an anti-avoidance measure. Most countries with a death tax will charge it on non-residents in respect of property and other assets within their borders. Double tax relief for foreign death taxes is available against any UK inheritance tax liability arising on the same assets. Double tax relief will also be available for foreign tax gifts if the same gift gives rises to a UK inheritance tax liability although this will be rare unless trusts are involved. Wealth warning: do not assume that there will be an exemption from foreign death or gift taxes in respect of transfers to your spouse or civil partner. This will not always be the case. Furthermore, it is crucial to be aware that foreign gift taxes may apply to lifetime transfers of property or shares in property (e.g. putting a foreign property into joint ownership with your spouse).

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5 Tax Charges You Can Expect to Face When Buying, Owning & Selling Property Overseas

In other parts of the world, what you pay for property in the UK largely depends on that property’s location. Where a property is situated and what services and amenities are nearby is often more important to property buyers and investors than the state of the property itself. If, for example, you are looking for property in central London then you can expect to pay a premium price for that property. In the north of England and in some parts of Wales and Scotland property prices are often much cheaper.

Before you decide to buy property in the UK it is best to assess why you want the property and what type of property would suit your needs. If, for example, you are moving house to another area because the schools are better in that area then you should expect to pay more for a property than the amount you get for your current property. If you want the property as an investment piece and are thinking of entering the buy to let market then you might not be quite so restricted as someone who needed to buy a property in a certain area of the UK.

There are many different types of property in the UK for buyers to choose from including commercial property. If it is housing that you are looking at then you can choose between detached and semi-detached properties, as well as flats, maisonettes and bungalows. You might decide that you want a particular type of detached property, say one that is in the Tudor style – these are known as mock Tudor. Then you have to decide whether you want a modern detached property in Tudor architectural style or whether you want an actual historic, Tudor home.

One of the main differences is that Mock Tudor homes were built after the nineteenth century and although they have the same black and white exterior the interior beams are there purely for decoration purposes – what is known as half timbering. In Tudor period houses the beams acted as part of the supporting structures.

Most of the Tudor houses that you will find on sale today do not date from the original period of 1485-1603 but are of a much later period, generally the nineteenth century when there was a revival of this particular style. Tudor houses generally have a timbered front and in houses built at the time this timber was part of the structure. The doorways will be lower than normal and arched rather than rectangular. If you are looking for an original Tudor property then these are rarely for sale; but if you should find one then it will tend to be in an area of the UK that was famed for its Tudor architecture – if the building is original then it is probably a listed building which will put all kinds of caveats about what you can and cannot do with the property.

If you are a first time buyer looking for a property then you may come under the new regulations the Government have brought in which encourages mortgage providers to give firs time buyers a longer payback period with a longer term fixed interest – this is designed to make monthly mortgage repayments lower but it can involve extra costs in the long run. Some companies will allow new purchasers to borrow more than the value of their home in order to help with the deposit and with the legal and estate agent fees that are incurred in the first year of buying a property. The Government also runs a number of shared ownership schemes in an attempt to help first time buyers break into the market.

You may not be a first time buyer but a flat owner looking to upgrade to a house. If you are looking at buying a brand new build then you could save money on surveyor’s costs. Some builders are offering good deals to buyers of new property either by paying their stamp duty or offering a cash back bonus when a person moves into the property. Whatever you decide to go for make sure that you have sound legal advice concerning property and property buyer’s rights and obligations.

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Property Investment in the UK

When many people hear the term ‘property investment’ they automatically think of what they have read in the papers: falling house prices, fluctuating interest rates and the failing economy.

They see this press. Take it to its word. And forget that hidden beneath its outer exterior the property investment market has got a lot to offer.

It is not inaccessible either. All it takes to access the true potential of the property market is the knowledge to know where to look and ‘know how’ to make it happen. 

Remember, despite all the hype, property is still an investment vehicle. A vehicle that gives investors – we mean you – the flexibility to control your involvement and how much time you invest within them.

Take a look at stocks. Do you really understand how they work? Not many of us do, but we still invest in them because we know there is profit.

But imagine what you could achieve with an investment that you could completely control? No worries. No fear. But knowing exactly where you.

Well with property you can. Your choices will be endless.

Real Estate Stocks and Mortgage instruments

Now if you wanted to be a passive investor this is the route to take. Here you can place funds into the stock market in the form of equities of major national homebuilder firms, and they will do the rest for you.

Or alternatively you can follow another investment strategy: discounted notes.

The rules to this investment are simple.  Sellers quite often are quite happy to accept a mortgage from a buyer to begin with but later want to convert it to cash. To do this they need to sell the note to an investor – you – at a discount. And the rest? Well. Whilst they are free of the mortgage, you will be receiving monthly repayments from the buyer – when you have never even seen the house. How simple is that?

Appreciation of property values

This one is the more traditional routes and one we’d most recommend if you plan to sell your properties later on.

Take the current financial climate. You can now invest in properties at 70-80% of their original value without a second thought. Giving you instant free equity.

Now consider this. After investing you decide to either rent your property out or live in it yourself. Over time, your property investment will begin to appreciate in value, and if it is anything like what we have experienced before, you will have access to a property that is greater in value than the top properties of 2007.

And if you do eventually sell, you will not only experience a return on your investment… you’ll have that initial extra equity to boot too.

General Price inflation in the economy

Even if your properties are not appreciating in value – as properties are doing now – this is not the end of your property investment. No. Their value can also be affected by economic inflation.

So let’s just say for example that you are developing some properties. If the cost of labour and materials is continually rising, then the cost to build an identical property could be more than the original. And if each property you build in one area is costing a bit more each time, then in turn their value as a complete development site will have risen.

Meaning at the end your property values will be higher than they were to begin with.

Cash flow and mortgage repayments

Compared to traditional investments that require some money on your part to maintain and pay for them, with rental properties you don’t have to deal with that. Your tenants will essentially pay your repayments for you, whilst giving you an additional positive cash flow each and every month too.

With figures like these it is easy to see why property is considered a stronger investment than stocks and a bank account – the gains are much more profitable.

And here is the best part. Even if your rental income covers only the mortgage repayments. No more. No less. You will still have the joy of watching the equity in your property grow over time.

Buying below market value

Look in the papers and you’ll read many reports of investors who are selling up in the current financial climate in order to maintain their profits. This is a big mistake on their part, but one you can take advantage of. You see they will be so keen to access the equity from it, they will be happy to sell it to you for below value. Great!

Then there are other cases when a property has gone into a foreclosure. To sell the property and get their money back, lenders will often take less than the market value so that they can avoid any further marketing expense and begin again with a clear slate.

Now here is the advice you have been waiting for… Find one of these properties and you will immediately enter into an equity position, purely based on profits.

So if you do spot one… gets investing and buys low. The long terms profits will be incredible.

Converting the use of your property

Imagine investing in a run down 5 bed property and being able to convert it into student accommodation or 2 apartments. You could potentially increase your rental income and benefit from having multiple tenants all within one property. Meaning there will always be someone living in your rental property.

This is what is so great about property investment. You can do a similar thing to any type of property. Take for example this concept. You have just invested in some apartments that currently have low rental yields.

With a little remodelling, you can convert these said apartments into condominiums, and nearly double your rental yields.

Create new value

Every region or neighbourhood goes through a price fluctuation at some point. So spotting a potential hot spot – before its property prices have increased – can be quite profitable.

In this one area you can build up your property portfolio and sit back and watch as your properties appreciate in value. Perfect!

Get the picture – property investment can offer you consistent ‘positive’ cash flows every single month, plus can come in all shapes and forms for you to choose from.

So if you are looking to invest in rental properties consider your options for a moment. There is more to property investment than meets the eye.

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7 Reasons Why Property Can Become the Perfect Investment

Depreciation allowance, agent fees, land tax, insurance, and property repairs can be claimed as tax deductions. As the property investor, you can enjoy these benefits and not only that, you can also do negative gearing to receive certain tax advantages. To ensure long term wealth, you need to hold on to a property for 7 – 10 years. This is the time when you can see your investment doubling. Aside from the rewards, there are also risks that you can be aware of. Investment decisions are vital and you have to make sure that yours is an informed decision.

When there is low risk, there is an also low return. When you purchase a certain property, you will also be charged of GST and stamp duty. The GST is charged on maintenance, repairs, agent fees, home construction, and renovations. When investment properties appreciate, the government will also charge you with capital gains tax.

In the case of being a landlord, tenant vacancies can be a big problem so you have to ensure that you have a steady flow of tenants. Properties should be maintained and so you will also incur costs. Before buying a building, always make sure that appropriate building inspection is carried out. Are you into purchasing strata units? If so, then you will be required to pay certain levies on the property. As the property investor, you need to check if there are upcoming levies on the real estate property you’ve bought.

If the property is located in a peaceful area, it would be wise to think ahead and determine if future projects are underway like airport construction, or perhaps freeways. In some states, land tax can be applied to the properties.

These are the rewards and risks that should be familiar when investing in the real estate industry.

The simplest way to gain an idea of the likely selling price of your property is to compare it with other homes that have been sold recently in the same area.  Look for similar sized properties on your street or in your town that are listed for sale and find what price they are being advertised at.  Although prices will vary a certain amount according to factors such as the age of the property and how well it has been maintained you should be able to gain a reasonable estimate of how much you would get for your home if you decided to sell it. 

For an estimate of how much your home is likely to be worth in the future a good idea is to look at current market trends.  If property prices are growing by for example 5% each year then you can calculate how much the value of your home is likely to increase over the next few years.  Although looking at market trends can be useful you should remember that trends are likely to change and so any estimate may eventually prove to be inaccurate.

In the UK there are many websites that will provide you with an estimated value of your property online for free using a collection of property market data.  These websites require you to enter certain details about your property such as its postcode, the year it was built and the number of bedrooms. Although these sites can be useful they are unable to account for factors such as the condition of the property and so the estimated worth of your home may be set too high or too low.

If you are planning to sell your home then it is advisable to have your property valued professionally.   In the UK professional property valuations are performed by qualified chartered surveyors who often work for or are associated with estate agency firms.  Most people requiring a property valuation will use estate agents.  Using estate agents is beneficial for a number of reasons.  Estate agents are experienced in valuing properties, have local knowledge and in many cases offer their services for free.