Land Banking- What Is It

Category: Finance, Real Estate.

Land banking, over the longer term, has shown better average gains than either shares or property, and with less downside risk, with an average UK growth of 920% in 20 years!

Land Banking- What is it? Once the preserve of rich, even smaller, today, "in the know" investors are taking advantage of this opportunity to make substantial capital gains. Land banking simply involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization. Land Banking in the UK In 2004 alone, agricultural land in the UK appreciated in value between 16% and 30% , depending upon its geographical location. With the granting of planning consent, the price of an open space parcel, not yet subject to urban development pressures, normally rises in value. In fact, over the past 20 years, the AVERAGE increase in UK Land has been a staggering 920% ! Not only has land risen in value dramatically, it has risen in a smoother upward path with less downside volatility than either stocks or property.

In many instances, investors who have bought land in the right place at the right time have exceeded these average gains. UK Demand Exceeding Supply The UK is one of the most densely populated countries in Europe and has a rising population driven by a huge influx of migrants from overseas. Over the last 30 years, the demand for new homes has increased by 30% . Two facts will illustrate the potential of land banking in the UK: There is a need for up to 3, 000 new homes, 500 over the next 15 years, 400, rising to 4, 000 new homes over the next 20 years. In the same period, house- building rates have dropped by over 50% . Location is the Key! Supply must catch up with demand, and buying land in the UK therefore offers investors a great opportunity to make substantial capital gains.

Under developed land, agricultural and forestry, such as Greenbelt, is cheaper than land that currently enjoys planning consent. Pre- planning purchase of green belt, agricultural and forestry land is nothing new. The way to make big capital gains in land banking, involves buying land in specific areas in the hope of future development. Astute investors have been doing it for years. How to Make Big Land Banking Capital Gains Every developer knows that each town and city must grow outward, and the land most available is agricultural, greenbelt and forestry. Investors simply need to study specific areas for the likelihood of future planning permission being granted, which will lead to an increase in the value of the plot purchased. Land without planning permission which is subsequently included in a local authority s unitary development plan( UDP) , will potentially benefit from a significant increase in value.

However, the change of use category granted, i. e. residential, will ultimately dictate, commercial recreational etc the change in value of the plot. With the granting of a change of use, a site s value can increase substantially. Land Banking Risks Any investor considering land banking needs to give careful consideration to site selection, and purchase sites which are within the path of progress and future urbanization, but also have a high probability of future development. Taking Advantage of the Land Banking Opportunity There are many specialist companies catering for international investors wishing to own UK land. Land Banking is a long- term investment, as resale durations and amounts are variable. An investment in land can be cheap, as many developers buy plots, and sell them, divide them in smaller parcels.

Read more...

The Slower The Market, The Fewer Offers - Finance and Real Estate Blog:

First, think about the time of year you are out looking. Why?

At This Point, Inform Them That You Can T Buy Today Due To The Lack Of Equity In Such A Brilliant New Home - Finance and Real Estate Articles:

Most people want someone they can trust to work with in any situation, and when it comes to selling a home, even the most desperate of individuals wants to feel safe and secure with the person to whom they are selling.

Don T Forget That Not Every Exit Strategy Reaps The Same Profits

Category: Finance, Real Estate.

Strange but true, you can actually find and exit opportunities in investments even before you commence them! Given below are certain exit strategies that you should know before you carry out your first deal. .

Speaking in business terms, formulating short sale exit strategies in real estate investing is essential before carrying out the first deal. Wholesaling- Wholesaling is carried out when someone purchases a property, which needs to be extensively repaired, and then reselling the property to someone who wants to carry out those repairs. Holding as Rentals- If a house needs only a little sprucing up, it would be enough to turn the deal into a profit. More often than not, this approach acquires the lowest return, it is the, but also has the fastest turnaround. . However, you ought to know that this exit strategy is not apt for you if you don t wish to be the landlord, or you lack a positive cash flow. . In such cases, a general rule of thumb followed is trying to negotiate the price for no less than 75% -80% of the original ARV.

Reselling Outright- Many people opt for reselling outright. If not, you may be unable to get sufficient returns when you sell the property. Given below are some significant factors that prove that formulating an exit strategy is advised before real estate agents begin the negotiation process: Everyone has certain moral principles to abide by, so do real estate agents. You will have to recover all the holding expenses that you bring upon yourself while waiting to sell the property. Even though real estate gents are mostly concerned about their profit, they should consider that homeowners are handing over part of their well- being. Hence, if you are a real estate agent, it is necessary that you have a certain plan of action before take on any responsibility. No one is keen on putting a family or individual at risk.

Another reason is that after you acquire the acceptance letter you have a limited amount of time to work. Don t be reactive but proactive. Don t forget you also have to work on your next deal, prepare a house for sale and there is hardly any time to design the exit strategy. Last but not least, if you predetermine the exit strategy before time, you can easily close the deal for greater profit within 45 days at the most. Always make sure you have a better understanding of the deal and understand the possible earnings. There are chances that the deal may fail because of inadequate preparation.

Take some time off to gauge the digits on the basis of the exit strategy you use. Eventually, you may find that even though you can negotiate the short sale it may be futile. Don t forget that not every exit strategy reaps the same profits. You might just not acquire sufficient profit after exiting and on the other hand a particular deal might be too risky to invest in.

Read more...

A Mortgage Loan Uses Property As Security For A Loan On The Property - Finance and Real Estate Articles:

The first step to building wealth through real estate investing is to buy your own home. This way you not only are not only investing your payments in a property, you are able to take advantage of capital gains.

Builders Are Busy Creating New Home Communities To Serve The Needs Of Residents In The Imperial Valley - Finance and Real Estate Articles:

El Centro, as well as other communities in the Imperial Valley, are home to a number of new housing developments. Buyers are attracted to El Centro because new homes are incredibly affordable- it s one of the last affordable real estate areas in California.

I Guarantee That These Buyers Paid A Premium - Finance and Real Estate Blog:

An important part of our job as Realtors is to help our clients negotiate for the best deal on a house. Here are some strategies to help you guide your clients through the negotiation process.

When You Get A Real Estate Agent Involved, He Or She Will Often End Up Taking A Hefty Cut

Category: Finance, Real Estate.

If you are looking to sell your home, you will find that there are many options open to you. Before you take this step there are many things consider.

One option that will be quite tempting to you is the option to sell it yourself rather going through a real estate agent. There are advantages and disadvantages to it, and there are options that you may not have considered. When you get a real estate agent involved, he or she will often end up taking a hefty cut. One of the largest advantages of selling your own home is that you will receive all of the profits. The commission that a real estate agent will earn from the sale of your house can be quite a lot of money. It is important, however to keep in mind that that 12, 000 dollars will buy you not only the real estate agents time, but also her resources.

For example, 6% is an extremely common commission that a real estate agent might take, and for a house that sells for 200, you will find, 000 dollars that the agent receives 12, 00Ask yourself if it is possible that you would spend 12, 000 dollars in time and resources when you go to sell your house yourself. Your real estate agent will be able to offer you her skills and her expertise as well as whatever contacts she has to make sure your house sells. Another factor to think about is speed. If your house is a tricky property( in a bad area, has a bad reputation, etc. ) this is something to consider. If you need to sell your house quickly, getting a real estate agent involved can make things a little more complicated. Of course, the real estate agent isn t the one pay for some of the things that he is pushing, like investing a lot of money towards repairs.

A real estate wants to get you the most money for your house because then his commission will go up. Repairs take time and money and depending on why you are selling your house, you might not have a lot of either. This leaves you in the position of waiting for someone who will want to buy the house as it is, accepting a counteroffer that is designed to knock down your own price, or spending time bargaining with prospective buyers. In addition, due to their training, there is a good chance that your real estate agent will overprice your house, and this is a trick that is known to many home buyers. Experience is another thing to consider if you are trying to decide how to sell your house. You know many of the selling points and many of the weaknesses, and you will be able to explain them in detail to prospective buyers.

While a real estate agent ha a lot of experience selling houses, no one knows your house as well as you do! On the other hand, a real estate agent has experience on how to present them, unless you have, something that had training in presentation and speaking, you might not be able to do as effectively. A real estate investor is a buyer who is looking at your home in a different way than most. Something that you should keep in mind, is that when, however you are looking to sell your house, you may be able to bypass all of this! He will be interested your property as an investment rather than a home to live in, and this can work to your advantage. You will not need to pay a commission as you don t need a realtor to make contact with a real estate investor, and you will be able to sell your property quickly and with only two people involved. Instead of needing to make extensive repairs, there is a good chance that you will be able to sell your property as is.

You will also find that a real estate investor will be able to make an offer very quickly. There are many things you will be thinking about when you need to sell your home and many decisions that you will need to make. Rather than waiting on a family that needs to consider many factors before moving in, you will be able to have an offer often within a week. Think about what your situation is and remember that there are many options available to you!

Read more...

This Is Why A Mortgage Loan Is Considered A" Secured Loan" - Earline Fore about Finance and Real Estate:

If you are looking to buy a house, one of the first things that come to mind is how to get mortgage loan financing to purchase your property.

New Homes At New Orleans Are Increasing All The Time - Anna Trisler's Finance and Real Estate blog:

Searching for a new home is not easy, and many times you will often get stuck with too many choices or not enough. There are various developments that are being constructed to encourage people to repopulate the area after the effects of Hurricane Katrina.

Investors Are Making Excellent Choices When It Comes To Overseas Property - Darla Marlow's Finance and Real Estate blog:

Investors are making excellent choices when it comes to overseas property.

Determining Commercial Property Market Value Is Different Than Determining Market Value For A Residential Property

Category: Finance, Real Estate.

Here in the United States, "fair market value" on any item is determined by what a buyer is willing to pay a seller for the item.

While real estate also has a fair market value, it is a bit harder to determine because of all the factors which go into the valuation. Simply put, if I have a stick of gum, and I offer it to you for ten cents, and you want to purchase it for ten cents, then the fair market value of the stick of gum is ten cents. A property, unlike the simple stick of gum in the above example, has multiple aspects for a seller and buyer to put different valuations on. Determining commercial property market value is different than determining market value for a residential property. Introduce a lender into the picture, and then you have a third option on valuation to deal with as well. In a residential valuation you can simply look at other recent comparable sales in the area, of similar homes and lot sizes, and determine about what a property is worth at any given time. One major difference between residential and commercial properties is their location and their use.

The issue you will find with commercial property is that they tend to be one- of- a- kind properties, and you may not be able to find many local comparable sales in recent times. If you own a large lot inside of the city limits, with a huge warehouse store built on it, with a 10 year lease to a big box store, then you have a very valuable property. Location, also known as market area, is more important in commercial real estate because businesses need to be near to their workers and to their customers as well. If you have the same lot size, with the same store on it, but it is, same lease located 30 miles from the only local town where most people in the area live, then you have a lesser valued property. Another consideration when looking at market value of a commercial property is the availability of similar properties on the market. This gives you some leverage to point out differences and better negotiate the price you are willing to pay.

By looking at as many properties as possible, you can start to get an idea of what different properties are selling for in your local area. This will also give you some idea of how difficult it will be to find a tenant for your property. You will need the rental income to cover your investment funding as well as your day to day costs of owning the property. If you are tying to determine the market value of a piece of commercial real estate, one of the factors you should always consider is how well other properties in the area are renting and what they are renting for. If you purchase a property at an agreed upon price, will the rents support the costs? These are things you need to think about prior to purchase. What if your property sits vacant for a month or two?

When trying to determine commercial property market value there are many factors which come into play. By determining what you are willing to pay for a property, and having a professional commercial real estate market analysis completed for you, you can avoid many of the mistakes new commercial property investors make. The biggest being the market area, rental income potential, local property costs, and the property condition itself.

Read more...

There Are Many Property Dealers In India - Finance and Real Estate:

Buying or selling a house is a matter of great concern for all. Then, he immediately runs to a reliable and good property dealers.

It Is Sounds A Real Daunting Task, But Houston Foreclosure Homes Can Help You Out - Finance and Real Estate Blog:

Buying a home in Houston could be a confusing process especially if it is your first Houston home. It is sounds a real daunting task, but Houston foreclosure homes can help you out.

The Main Attribute Of The Riviera Maya Mexico Is The Diversity It Offers To Visitors - Finance and Real Estate Articles:

The Riviera Maya Real Estate Mexico is comprised of untouched and isolated beachfronts that offer the quintessential tropical vacation experience, complete with turquoise waters and coral reefs. Geographically, Riviera Maya extends from 20 min south from Cancun and extends till Costa Maya.

There Are Many Points To Remember Real Property Is Transferred To A Trust

Category: Finance, Real Estate.

Any one possessed of property is usually aware of the pitfalls of not having an estate plan or a will in place. One position one must know relates to real estate located outside the state of domicile.

Nevertheless, most are unaware of the drawbacks of insufficient estate planning or certain conditions that give rise to pitfalls even when they have made a will. Law does not permit transfer of property located in a state other than the state of domicile i. e. the state of permanent residence of the descendant with through a will without ancillary probate which is an entirely separate probate proceeding. One in the state of permanent residence for real property located there and another for real property located in another state. Therefore a will to disposing real property, part of which is located in a state other than the state of domicile, will entail two separate probate proceeding. Any provision in the will to dispose all real property even to a single person will not avoid ancillary probate. It is possible to avoid ancillary probate by transferring the property to a trust. One can imagine the position where a descendant has property located in four different states.

For example, A owns a condo in Virginia apart from real estate in Maine. If he makes a will disposing all his property to his heirs through the will, property transfer would entail two separate probate proceedings. Maine is his state of domicile/ permanent residence. One in courts at Maine and another in Virginia courts. He can name persons of his choice as beneficiaries in the trust deed. If A establishes a funded trust and transfers the Virginia property to the trust, he can avoid the ancillary probate.

A copy of his Virginia property would need to be attached to the deed of trust, so that the exact description to identify the designated/ transferred property is available. The issue related to a new title insurance policy is of utmost importance. There are many points to remember real property is transferred to a trust. Title insurance offers protection from claims against your ownership of the property in question. The fire insurance and liability policies will also need to be suitably amended to reflect the name of the trust as the new owner. When title is transferred to the trust, which becomes the new owner of the property and exists as an entity separate from you, the insurance company may require the trust to purchase a new policy.

Depending on the type of trust, an environmental inspection may be required. Other factors like recording fees for the deed of transfer, real estate transfer taxes, mortgage- recording fees and other taxes etc. need to be taken into account. Certain conditions with respect to periodical reporting may also have to be met. It would also be prudent to find out if the transfer of the property to a trust property tax reassessment implications. If the property were under a mortgage, the mortgage document would need to be reviewed to find out if the note requires repayment to the lender. An undervalued property may entail paying a higher property tax after reassessment. Other possible tax consequences of making the transfer need to be discussed with your accountant.

But you must pay fair market rental to the trust This may not be necessary in case of a revocable living trust created for your own benefit where tax provisions continue to treat you as the property owner. To retain personal use of the property, there must be a formal lease document executed by the trust in your favor, which will legally entitle you to continue using the premises.

Read more...

First, Decide What Type Of Property You Want To Purchase - Tiffany Kensey's Finance and Real Estate blog:

It seems that Cyprus is the place to go when it comes to overseas investment or retiring. Europeans especially seem attracted to this island.

In The Past, Individuals Got Into Real Estate Investing To Make Money By Serving As Landlords - Ina Mclaurin's Finance and Real Estate blog:

In the past, individuals got into real estate investing to make money by serving as landlords.

They Can Purchase Foreclosed Homes Under Market Value Directly From Lenders - Finance and Real Estate Articles:

When an investor is prepared and flexible to invest in real estate it would be wise to look at investing the Las Vegas foreclosure market. The foreclosure listings will help you out for the suitable home you are looking for.

What Is A Lease

Category: Finance, Real Estate.

Whether you re a new landlord or property manager just getting your feet wet in the business for the first time, or a seasoned pro who has been dealing with renters for decades, it s vitally important that you have an in- depth understanding of the lease agreement. If you re considering breaking into the property management business, learning about leases is the single most important thing you can do.

Your level of familiarity with the basic lease agreement and its components is a factor that can make or break your career. If you have years of experience in the field, but you ve always used basic, or verbal rental, informal agreements, there s no better time than the present to upgrade to a written, comprehensive lease agreement that will help protect your property, and your livelihood, your investment. What is a lease? Let s start with the basics. Generally speaking, it s a specialized form of the standard contract. Most leases spell out the terms of the relationship between the owner/ manager of the property and the tenants.

Rather than spelling out the terms of a sale or a service agreement, the lease documents an agreement to allow the renter( or" lessee" ) inhabit the property for a specified period of time. Common elements included in lease agreements are the duration of the lease( month- to- month, a year, six months, etc. ), the lease renewal process, rules for the rental property, whether pets, payment terms, smoking, and other activities, businesses are allowed in the property, late- payment and non- payment penalties and procedures, and guidelines for vacating the property and returning the property to move- in condition at the end of the lease. However, it s important to make sure that the lease agreement you are using is in compliance with all of the local, and federal jurisdictions, state that apply in your area. Based on the needs of both the landlord and the tenant, the terms of a lease can vary considerably. Otherwise, you may be opening yourself up to legal liability if the lease is ever challenged in court. You also are agreeing not to change the terms of the lease until the current agreement has expired. As a landlord, you pledge to uphold your end of the responsibilities and duties set forth in the lease, as well as to adhere to the policies and practices you have set forth in the agreement.

Your tenant s signature on the lease confirms that your tenant will comply with all of the rules and guidelines specified in the document, keep current with rent payments, and leave the property in the manner described in the lease. Some landlords may have gotten into the habit of using simple leases, perhaps believing that it s just not worth the time and effort needed to create a comprehensive lease package. A legally- binding lease can be as simple as a basic contract handwritten and signed by both parties, or it can be as comprehensive as a multi- page package covering all aspects of life in the rental property. However, most legal experts agree that a more comprehensive lease package is your best bet. On the other hand, if you rely on a comprehensive lease package that clearly spells out all of your policies and expectations, it is less likely that you ll end up in court over a dispute. If your lease agreement does not spell out your exact expectations, you are leaving a lot to chance, problems and misunderstandings, and chances are will inevitably arise. Furthermore, you ll be less legally vulnerable with a comprehensive lease agreement.

Even more importantly, they re your best defense against bad tenants. For beginners, leases may be a bit intimidating, they, but at root re nothing more than specialized contracts. Every minute you invest in the process of building an airtight, legally, comprehensive- binding lease will pay significant dividends down the road.

Read more...

To Put That Great Deal Together You Have To Find That Motivated Seller - Finance and Real Estate Articles:

Becoming a real estate investor and a home flipping buyer is a great way to invest in the real estate market. Although sometimes it seems impossible to find them, with hard work and persistence they do exist.

A Lot Of UK Properties With Development Budding Are Now Sold At Property Auctions - Finance and Real Estate:

A lot of UK properties with development budding are now sold at property auctions.

Not For Today S Homebuyer - Finance and Real Estate Blog:

Once you start house hunting there is no doubt one of your first stops will be at a new homes website or community to see what they have to offer in the area you would like to live in. What was once considered a luxury reserved for the rich and famous, new construction has opened the door to all price ranges and styles including luxury high- rise condominiums, active adult communities, townhouses and single- family homes.

They Won T Have To. Make Multiple Offers On Homes That Have Been Torn Up By Homeowners And Renters

Category: Finance, Real Estate.

2005 is gone.

They won t have to. make multiple offers on homes that have been torn up by homeowners and renters. Thank goodness, now people that were getting. priced out of homes have a chance to purchase homes again. Sellers are cleaning up and lowering prices. Sellers are currently. competing against new home builders that are willing to go to just about any. length to sell the new homes even some are willing to purchase your home at 90% of appraised value just to get a sale. Arizona has approximately 44252 single family homes for. sale as of May 23, 200 The key to selling a home in this market is having an. aggressive price and a very desirable home( clean) . Some of the new home builders are. offering free pools, on top of, cars price reductions. They have some money down and can afford the payments.

The type of buyers searching for homes can be very aggressive with offers going 5- 10k under asking. price and asking the seller to contribute to buyer closing cost on top of the. lower offer. Changes in loan and mortgage programs also are putting a. large strain on the zero down low credit buyers. Lenders really changed the criteria of what type of credit and debt to income. ratios they will lend to. People that could have bought. a home that have been waiting for the bottom of this market are now unable to. purchase homes because they cannot get qualified as they could have before. Although we have this situation in 2007 we can also look at. the growth around the valley. The planning in. The growth is not stopping.

Buckeye and Surprise alone is huge. The sellers that get it are selling and buyers are. getting a cleaner home with a better price. Buyers that have long term real estate. goals in Arizona might have a great. buying opportunity now when sellers are willing to help with closing cost and. come down on the price.

Read more...

Why Buy Property Or Real Estate In The Limousin I Ask- And The Answers Are There Many - Maryanne Linthicum about Finance and Real Estate:

Why buy property or real estate in the Limousin I ask- and the answers are there many.

Moving Arrangements Should Be Made As Far In Advance As Possible - Lakisha Sublette's Finance and Real Estate blog:

There are many reasons people have for moving to a different location. Just as there are many reasons to relocate, there are also many types of moving including local, national and international, regional.

Perhaps You Will Even Turn Around And Sell The Investment Property, Either Way You Will Be Getting Your Moneys Worth Out Of It - Finance and Real Estate Blog:

So after many months or even years of thinking and after reading tons of tips for buying investment property abroad you have finally decided to buy the investment property abroad.

First, Consider Your Rent Situation Compared To Owning Your Own Home

Category: Finance, Real Estate.

The days of women waiting for marriage to get their home with a little white picket fence are over. In fact, single women represented 22 percent of home purchases( according to survey of National Association of Realtors) .

Nowadays women have more buying power than ever, especially in the real estate market. Why the big shift towards single women buyers? These women are smart enough to know that owning real estate is the best way to build wealth. In part, it is because women are focusing on their careers and have strong individual earnings. If you are single and debating whether you can afford to own your own home, here are some factors that may prepare your for the big decision. In Phoenix, real estate prices have increased, but there are still some great deals to be found, especially as the market slows down. First, consider your rent situation compared to owning your own home.

Compare what you are currently paying in rent with an average mortgage payment. While a mortgage payment may be more than rent, your yearly interest deduction can more than make up for the difference in amount. Do not forget to factor in your yearly tax savings. Also, evaluate how much your rent may increase on a yearly basis. As a single woman, your home buying power rests completely on your income, and your credit score and records. With a mortgage, your housing costs are fixed. Do you know what your credit score is?

If you are not sure what your credit score is, this is the perfect time to investigate. Your credit score( referred to as your FICO score) , is a numerical representation of your credit risk. You may find that there are some problems with the credit score that you can easily clean up and improve your score. There is more to consider than just the how much your monthly payments will be. Do you know how much you can afford to spend for a home or condominium? If you purchase a home, there will be expenses for maintenance of the home and property. As you prepare to purchase property, consider all the costs associated with the property.

Many condominiums and developments require payment of monthly home owner association dues. In fact, you might ask a friend that owns similar property to give you an estimate of how much they spend on a comparable property. It is a step towards independence and financial security. Buying a home is a big step, but it is something you can do on your own.

Of Course, You Do Not Have To Pay Cash For The House

Category: Finance, Real Estate.

Buying multiple houses may not be possible for everyone.

A house is great when it comes to securing the future. But those who do have the ability to do so are indeed fortunate. By investing in a house a person is ensuring that his tomorrows are less uncertain. Even today, one cannot underestimate the importance of knowing that you definitely have a roof over your head for a long while. No matter what challenges the future may throw in our way, if we own a house, at least we are certain of being protected from the elements and from the insecurities of today's world. But what do you do if you already own more than a single house?

It is highly cost- effective. Well, a house is, apart from security also a great investment option. If you want an investment that is secure and which provides good returns on the money that you have invested, it would be a good idea to purchase another house. If you do have some spare cash, don' t leave it lying around. Even if you already own a house, you should really be thinking about purchasing more property. Putting it all into some real estate would be a good idea. If you have sufficient money for down payment, you could try to avail of some mortgages to help you purchase your second home( or would it be the third? ).

Of course, you do not have to pay cash for the house. Consult your local banker to see what your options are. Study the market conditions and swoop down as soon as the rates hit rock bottom. If you have sufficient funds to be approved for a home loan, try availing of a deal at a time when the interest rates fall. Don' t wait too long to act for the interest rates might rise again any time. Clearly, this is a good deal. A lot of people purchase second homes with one object in mind- - that of renting it out.

The house that you have bought need not remain locked till thy kingdom come. Importantly, the money will yield returns for you and you hardly have to make any effort. You can find a family who will pay you a decent monthly rent at the beginning of every month. Thus, it would be sensible to approach a loan provider for a buy to let mortgage. It is the latest mortgage type to appeal to such people.