Taking a leap to decide to invest in real estate is something to pat yourself on the back—good job for bringing the risk to gain high returns. Student housing investment is an excellent asset class that has proven to be resilient to economic fluctuations. It has been known as one of the stable investment opportunities. The current coronavirus pandemic and the most recent economic recession have proven this point of merit.
Some investors note that investing in student housing could be pretty risky and scary. With possibility of students thrashing the place, it’s no wonder why some people feel this way. However, the reality is that student housing is an authentic component of real estate.
Nowadays, many companies are building their business models around student housing because of its growing business potential and high returns. Putting money for building and maintaining college apartments, like sunrisevillageapts.com, is a great investment move to take advantage of today.
If you are having doubts until now, read more of the benefits of investing in student housing:
Despite the raging tuition fees among many countries worldwide, the demand for undergraduate and graduate degrees is increasing. Student enrollment is rising continuously, and parents continue to send their children to college. The need for education is still huge.
When it comes to real estate, the typical factors in perceiving and considering are job growth and demographics. But, in this case, high enrollment is the primary indicator for student housing. Applications and their continuing processes indicate that a specific area, especially if it’s near a university, will be populated with students.
If you have tried being an in-house university student, you’ll agree that most schools promote or offer housing on campus only to first-year students. This is because they can’t keep up with the high demand.
Starting when universities stopped sustaining these increasing demands among students, third-party real estate investors and developers have started coming in to take advantage of this business opportunity. Purpose-built establishments and apartments are now constructed just outside of campuses. This real estate trend is witnessed all across the country and even overseas too.
The number of students pursuing further education has reached 2.28 million in the school year 2015-2016. This data alone proves why there is a vast pool of demand for student accommodations.
Many student housing investments are turnkey, so all you need to do is find student tenants. You don’t need to shell out money for remodeling or home improvements for your property investment. Many developers nowadays buy out large apartment complexes or condominiums and have each unit rented out. Sometimes, they sell these units too.
When such opportunities arise, you can purchase a smaller unit from that large complex and have a turnkey investment where they will be the ones to manage it. This is a convenient way for you to make money, as you don’t need to do anything.
It’s natural to hear the term ‘recession-proof,’ which is often claimed by many business analysts. Although they may be valid, sometimes they’re not. Nonetheless, student housing is an investment that is genuinely resilient to the economic downturn.
In reality, when a local crisis happens, the opposite effect on student housing happens. In contrast to what other real estate properties experience, more students or an increasing number of people apply for student housing. The reason is that they believe that an undergraduate degree will give them more possibilities to land a job when the labor market has collapsed or is impossibly competitive. People do their best to afford college, and those who finished a bachelor’s degree would think that a master’s degree is an even better solution.
Hence, the demand does not change, even during a recession. People never stop going to school, even when the economy is suffering.
Another critical phenomenon is the online learning alternative due to the COVID-19 pandemic. Although it has affected many student housing properties, they managed to reopen since many universities announced their intention to go back to on-campus learning. This scenario serves as an example of how resilient a student housing investment can be.
When your student housing property is located in one of the vibrant places in your city or town, you won’t need to market it to increase occupancy manually. These locations usually already have nearby restaurants, art galleries, malls, and nightlife, so these establishments become magnets for students to rent your housing unit.
Say goodbye to posting advertisements everywhere to seek out tenants. Let the tenants reach out to you. These college town properties usually sell themselves, so you have very minimal effort for promoting them.
Although some real estate owners have a negative judgment regarding students not paying on time or difficult tenants, students are actually responsible payers most of the time. The best thing about student housing is that they are usually good tenants or have a parental guarantor, which ensures no problem with rental collections.
Many students either study for associate degrees that last for two years or an undergraduate degree that lasts up to five years. They may even extend their housing terms if they plan to proceed to higher education, like master’s or doctor’s degrees. Due to the duration requirements for college, this would mean that students are long-term tenants.
Most landlords that aren’t in the student housing industry may have a hard time listing their rental properties, but not with student apartments because they usually stay until they graduate from college.
Since most of your tenants are living close to the university, they won’t need to drive a car. Some may not afford a car, either. This will be an advantage on your end because you won’t have to provide car space.
Investing in student housing has a 100 percent chance of not losing your entire income. Unlike other rental business models, you get to retain some income source because there will always be enough students occupying your property.
It’s a big swing for some private property owners who rent the entire home to a family. When the whole family leaves, there will be zero income for you.
The good thing about a student apartment is that even if some students leave and stop renting, there will still be some income left due to the other students renting continuously. It may not be ideal to have some vacancy, but it sure is better than losing your total income.
Although there is nothing like a guaranteed investment, student rentals can be one of the closest things. Even when you encounter irresponsible students and run from their financial obligations, you will always have guaranteed income through your parents. It’s not uncommon to have the parents sign guarantees, so your payment will be protected.
Also, a large majority of students are responsible for their finances. This means some hand out their rent fees on the first of the month to ensure that they have secured their housing expenses already paid. This makes the student rentals have lesser delinquencies than other areas in real estate.
Since your student housing property is located in a college town, you can expect many international students seeking out to rent. Universities in America are very active in attracting students from other countries. There will be a high demand for your property, and in turn, you will be left with no risk of having zero income.
Most student rentals are built for comfort, so they usually come in concrete and high-quality construction materials. Students could not create considerable damage, unlike with other properties that may have used light materials.
The concrete structures also become more attractive for students to live in. This becomes a selling point for you to market. Young people always prefer to stay in a living space made of concrete because it gives them an impression of safety and security.
Student housing properties usually have a good prospect for price appreciation in the future. Since many other investors will be interested in buying a property around this high-traffic area, the properties will increase in value almost every year. If you plan to sell and make more money through asset sales and profits, you can do so by buying now when it’s still affordable.
You may buy a purpose-built property now and have it rented out for some years. When the time is right, and the real estate has boomed enough, then you can sell your assets and make big profits.
Some states in the country implemented rent control prohibiting property owners from raising rents until they get a new tenant. Unfortunately, this could be a real pain for them, especially if the existing tenants have no plans of moving out. Because of this policy, you are not entitled to ‘mark to market.’
However, when it comes to student rentals, you have the chance to do this simply because you will have an opportunity to attract a new crop of students every two years or so. This will not be a downside for you even when your property falls under a state that implements rent control.
You will always have new students come into your property because they will soon move out after finishing their undergraduate studies. Most of them often transfer and find a different place to live, which might be closer to where they’re going to work soon.
If you invest in custom-built student accommodation, it usually already includes property management. This allows you to entrust the administration to experts like the university itself or building administrators. This is intelligent investment management that is active and proactive.
On another note, you may also reach out to third-party real estate property managers who can do all the tasks that involve your property.
The best advice to take when investing in student housing is to spread out your investments into a few stable properties with credible operators and, at the same time, take a risk to invest in new properties around some areas that have the potential for growing demand. Doing so will create a more balanced portfolio, so even if one property suffers from unpredictable circumstances, your overall investment will still balance out.
If you invest in a diversified and concentrated single asset, your returns are secure and sure. On the contrary, if you invest in several acquisitions, there are also opportunities for good returns with minimal risk.
Hence, the key is to spread out your student housing investment as much as possible because this will be a surer way to generate your desired returns.
The amenities and facilities present in purpose-built student accommodation are already secured. These benefits are imperative for the daily lives of students and occupants in the building premises. For example, they can enjoy communal areas, high-speed Wi-Fi, and study areas. All these amenities become available and attract many student tenants.
One of the best features that your student housing can have is when the location is near to their university or close to shops, cafes, local nightclubs, and workplaces. When you choose to invest in student housing, you will benefit from higher yields and shorter void periods. This entails the certainty and security that many investors are looking for.
Conclusion
Student rentals, in summary, are a significant investment. Depending on the area you choose, you will indeed have the best returns, especially when it’s near a university, coffee shops, restaurants, and workplaces. Like any investment, though, there are always risks involved. What you need to do is to lessen the risk and contain it.
When you think about the trouble of managing a student housing unit or apartment, feel free to ignore this because you can always find a third-party real estate management company that can take over all the operations for your property.
Take advantage of investing in student rental properties if you are familiar with an area where it’s booming with students and lots of traffic. Invest now and wait for your returns to generate.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
You cut your teeth as an engineer, developing everything from simple applications to complex distributed systems used by millions of users. Maybe you work for one of the FANG companies (Facebook, Amazon, Netflix, Google), and make six figures. You’ve been thinking about investing in real estate for some time, but you’ve held off because you believe there’s a high barrier to entry. Software is your world. You don’t have extensive knowledge of real estate.
What’s more, you work 60+ hours a week, and because of the amount of work, you don’t have time to study all the various ways of achieving financial freedom. So, you end up investing in stocks or crypto – and here lies a waste of capital allocation for software engineers.
Let’s face it: You didn’t land where you are today because you’re incapable of learning something new and complex. In fact, your expertise, attention to detail, and higher-than-average income make you the perfect candidate for real estate investing.
I decided to write this article to help techies like myself achieve financial freedom through real estate investing. And not only techies. This article is definitely one to read if you’re an engineer, product manager, designer, investment banker, sales manager, or another high-income earner.
What do baseball and golden handcuffs have to do with software engineers getting into real estate? You may not realize it, but most high-income earners like you are in a very sticky situation.
Employees stay with the same company for a variety of reasons. Exciting work. Thrilling challenges. Industry prestige. But of course, the main reasons they stay are the benefits: excellent base salary, stock, health insurance, and matching retirement plans.
All these exceptional benefits are “golden handcuffs.” They’re the juicy perks that encourage high-income employees to stay right where they are instead of seeking new opportunities.
Here’s where software engineers, golden handcuffs, and baseball players collide…
In large tech companies, software engineers can count on multiplying their total compensation by 1.3 every time they’re promoted to the next level. Let’s say you work for one of the FANG companies where compensation is pretty high:
Their salary increases sublinearly by about 10% from one level to the next. Stocks rise superlinearly about 50% from level to level. Now, the stocks that these engineers hold have also increased in value by about 8-10% annually over the last few years. As a result, they contribute to the $700K-$1MM high earners for folks in their late 20s and early 30s.
Don’t get me wrong, being an E6 at Facebook or Amazon is tough. It takes a lot of skill to reach this level. Most E6s have natural technical talent and graduated at the top of their class. These are true “high performers.”
But if you’re an E6 who’s coding, mentoring, providing technical vision and strategy, and leading your entire team’s technical charter – you end up working 60+ hours per week. Can you continue to meet such high demands for the next 5, 10, 15 years?
The younger techs can.
Paul Peebles from Old Capital calls this phenomenon the “baseball player effect.” Fresh tech grads earn almost the same amount of money as lower league baseball players. Plus, their careers peak in the mid-30s. After that, they compete with the “fresh blood” who eagerly churn out 60+ hour weeks without issue.
It’s the same for software engineers. Once you’re in the mid-30s, you hit the peak in your career. Then, your career and compensation stop growing at the same rate as before, eventually coming to a standstill.
You have an exact window of time to distribute your resources wisely so you can afford early retirement and comfortable life without depending on an employer.
If you work and live in California, like most techies, you pay the government up to 50% of your income. As a result, even if you make $800K a year, you’re left with only $400K.
Most California-based techies live in shiny houses, costing $2MM on average. With a 20% down payment, you then pay $10K for the monthly mortgage. You’re now left with $23K per month for all other expenses.
Now add the family, kids, expensive cars, and vacation to the equation. All of this can cost up to $10K per month, leaving you with only about $150K per year to invest. Talk about lackluster!
And what if you only earn $500K annually? If your career and income peak in your mid-30s, you’ll need to allocate your funds wisely (while you still can) in the growth stage.
But here we are again: Working 60+ hours per week with no time to explore investment options. Let’s talk about how to change that.
We can’t go into a head-to-head comparison of real estate vs. stocks because it’s like comparing apples to oranges. The factors that affect stocks or real estate values and returns are very distinct.
But, here are some thoughts I’d like to share with you on this topic:
It’s safe to say that most techies invest in the stock market because they think it doesn’t require that much research or money. When you buy stocks, you own a piece of that company. Consequently, you make money with value appreciation and dividends.
Then there’s real estate investing…
There’s a massive misconception that real estate investing requires a substantial initial investment and tons of time researching the market.
However, the ways you make ROI on stocks vs. real estate are entirely different. That’s why portfolio diversification is paramount.
With real estate, you acquire physical property. One of the most popular and sustainable ways to make money from real estate is by collecting rent. Another way is through appreciation – capitalizing on increased property value. Lastly, you can pay down your loan principal.
The advantage of real estate is that it is a tangible, diversifiable asset that you can control. In addition, real estate investing offers you some substantial tax benefits. Despite not having similar liquidity as the stock market, it provides long-term cash flow and passive income to help you retire early.
Most syndications offer 6-8% cash on cash return and 10-12% total annualized return. It’s certainly better than the stock market, period. Yes, you could argue that real estate can take a hit during economic recessions. But this applies to the stock market too.
Here is a comparison of the total returns of the SPDR S&P 500 ETF (SPY) and the Vanguard Real Estate ETF Total Return (VNQ) for the last 17 years:
Image by Sabrina Jiang © Investopedia 2020
Real estate syndication consists of two parties. One group is the syndicators, who do all the work for you, such as finding and evaluating deals, getting the property under contract, hiring and overseeing the property management company, executing the business plan, and finally disposing of the property. The other group is the passive investors – they don’t do any work but invest $50K, $100K, or $150K. They do this so they can buy a large piece of real estate that they cannot buy otherwise individually. Syndicators make extra due to their sweat equity.
There are 2 types of people out there. Knowing which one you are will help you decide if being a real estate syndicator is right for you:
I am a real estate syndicator myself and have invested in more than 1,500 units. I’m also a lead syndicator on two deals totaling 580 units. Let’s explore the pros and cons of becoming a real estate syndicator.
Have you been visualizing yourself traveling the world while the income keeps rolling in from your investments? That might be your goal, but here are other benefits of real estate syndication:
Pros
Before you make a decision, here is a list of reasons why syndicating while having a high-income job is not necessarily worth it:
Cons
The bottom line: Real estate syndication is not rocket science. It’s mostly hard work, a little bit of research, and 5th-grade spreadsheet skills.
If you’re a high-income earner and don’t have enough time to do research, passively investing with real estate syndication is your way to go.
It surprises me that while syndication provides an excellent resource for passive income, I’ve hardly met any FANG engineers in real estate syndication mentoring groups. It’s unfortunate because real estate syndication offers high-income techies an opportunity to diversify their portfolios and enjoy early retirement.
You don’t have to “work your way up” or spend a lot of time becoming a syndicator or general partner yourself. Passively invest in syndications!
Here’s an example of what that looks like:
I work in the tech world (engineering manager at Lyft). A few of my friends invest in my real estate deals. I take care of their tax filings, so I may have to call them from time to time.
While I’m doing all the paperwork, they’re out in Hawaii just surfing and enjoying life. Sometimes I get jealous. Why am I doing all this for them while they’re not working for any of the money that’s coming in?
That’s the power of passive investment in real estate. The return on your time equals infinity – especially if you have someone like myself doing the work for you.
Diversifying your portfolio into real estate doesn’t have to be complicated. Here’s what to do:
Author Bio
Perry Zheng is the founder and CEO of Cash Flow Portal, a real estate syndication software. He lives in Seattle, where he owns six single-family properties. Perry started real estate syndication three years ago. Today, he has more than 1500 units, raised over $16M, and is a lead syndicator on two deals totaling 580 units.
His goal is to help other syndicators succeed and overcome common challenges like raising capital and finding deals even while having full-time jobs. Perry is also a full-time engineering manager at Lyft. He worked at Twitter and Amazon before that.
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The real estate industry has seen impressive development over the past few years, thanks to the growing number of prospective homeowners. Today, you can find all sorts of investment properties to purchase, whether it’s vacant land, a commercial structure, or a residential building.
One thing about many of these for-sale properties, however, is that they may seem impressive from the outside, but the interior is wanting. For instance, there are those that might require repairs or termite treatment before you can move in, which could easily hurt your budget.
That’s not to say every stunning building has a set of hidden issues, but it’s better to be sure before investing your hard-earned money. So, what are some of the things to check keenly in an investment property before accepting your next deal? Read on to learn more.
Pests can be quite destructive to structures, especially those with several wooden designs. Unfortunately, not every homeowner takes the idea of pest control seriously, which is why you should prioritize it in your home inspection process.
Of course, it’s almost impossible to determine such issues with your naked eye. As such, it’d be prudent to hire a professional expert to carry out the inspection in all the rooms. After the process, they’ll give you a full report and whether there are any signs of a future pest infestation.
You might be wondering how such an inspection will be beneficial to you. Well, for one, it’ll save you any future regrets. It can be quite frustrating to move into a house only to realize later that it’s infested with termites and other creepy crawlies.
Another advantage is the fact that it helps in uncovering any other hidden issues. For instance, pests might have messed up with the building’s structural design, which can easily go unnoticed.
With all these in mind, you’ll have the upper hand during negotiations. Of course, the help of a real estate agent might come in handy, especially when trying to estimate the final value of the property.
Most residential properties have a private well which is the main source of water within the home. If your target property has this, it’d be wise to have it inspected thoroughly before going ahead with the purchase.
It’s a no-brainer that contaminated water can pose a risk to the health of its users. Well, water can be easily polluted depending on its location and the design of its seal. In fact, the latter should be your first warning sign as you commence the inspection process.
Again, it’s important that you hire an expert to test the well water and ascertain the condition of the well itself. Oh, and don’t forget to check the flow rate and pressure.
Drilling a new well can be very expensive. Therefore, you need to be sure that the available one is still useable; otherwise, it could come back to haunt you.
Is the plumbing system still in good shape? This is another critical question that will need answers before you can invest your money in any given property. It doesn’t matter if it’s a commercial or residential property; poor plumbing can always lead to a lot of frustrations.
So, where should you start with the plumbing inspection? The aesthetics can be very appealing to the eye, but that doesn’t guarantee a fully functional plumbing system. Therefore, most of your checks here should focus on the operation rather than the appearance—although that’s another aspect.
One way of inspecting this section of the building is by checking the pressure of the water. Hook up a pressure gauge to the hose faucet in one of the rooms and turn it on when the rest of the sections aren’t in use. The recommended pressure is always anywhere between 30 and 80psi. If yours doesn’t meet this threshold, then there must be an issue with the plumbing system.
You can also get a miniature camera and drop it into the sewer line. Inspect for blockages and any noticeable damages along these sections. Remember, failure to carry out such inspections could leave you with repairs amounting to more than USD$5000, depending on the size of the building.
The easiest way to know whether there are some issues within the property is when there is an unpleasant smell. Of course, the sellers already know this and might decide to mask the smell with a room freshener rather than dealing with its root cause. As a buyer, if you’re not careful, the beautiful smell from these fresheners could fool you.
Take, for example, a house that was previously owned by a smoker. Of course, the tobacco odor rarely goes away immediately. If fresheners are used, it might be difficult for you to realize, but once you’ve moved in, it won’t take you long to notice the smell of tobacco. Apart from creating an uncomfortable environment, it could also lead to some health complications.
Uneven floors may not seem much of an issue at first, but they can be quite frustrating for you as a new homeowner. For instance, if the living room has an uneven floor, it’ll be quite difficult to organize your furniture. For one, you might need to use some supporters to stabilize your tables, seats, TV stand, and other furniture.
So, how can you avoid such an experience? Well, it’s all about how you inspect the house. It’s always recommended that you bring a marble during the inspection and place it around various areas of the floor in every room you visit. This will show you any defects in the floor design.
Keep in mind that this isn’t proof of poor construction, especially if the house is quite old. Some houses can settle aggressively, and this will create a hump in the middle. Without inspection, some owners may not be aware, while others might want to play it down.
However, the fact of the matter is that this could be quite costly. The solution to deflections in floors may demand that you rip out the entire existing floor. In other words, you’ll need to reconstruct the floor from scratch; otherwise, you might have some unpleasant patches all over. Therefore, realizing this before taking the deal can save you a lot of money in the long run.
Another very important factor you should open your eyes to is the condition of the walls. This is something that you can’t run away from because it determines the aesthetics of your home. For instance, no matter how organized your living room is, poorly designed walls will always drag your efforts back.
Some defects like worn-out paints and other naked damages are quite easy to trace. Remember, there is no ‘negligible’ damage when it comes to home inspection. For instance, there could be some stains left behind due to the tobacco residue in case you’re buying from a smoker. The yellowish-brown stains can be quite costly to get rid of as they’ll require a lot of scrubbing and two or more coats of paint. Therefore, be sure to record everything that you think requires attention before you can commence the negotiations.
There are, however, some issues that aren’t easy to notice. For instance, some people conceal water damage by painting over them. In the process, moisture is trapped beneath these paints, which can easily lead to the growth of mold. Black molds, generally, pose a threat to your health when you breathe in that odor.
So, how will you determine such issues? The biggest culprits when it comes to water damage are areas under the drawers, sinks, or beneath the tubs and toilets. In fact, if you come across warped sheetrock, that’s an indication that there might be some leaks, which could also mean that there is some water damage around the area.
Of course, the sellers are always required to disclose this information to their prospective buyers. If you happen to realize these issues during your inspection but aren’t mentioned in the package, then that could say a lot about the seller. In such a scenario, you have all the reasons to back out because you don’t know what else they’re hiding from you. In fact, depending on your state laws, the sellers might be forced to reimburse you for any costs incurred during the inspection.
Now that you’re impressed with the condition of the walls, it’s time to find out if they’re soundproof. This is quite important because of many things. For one, you will definitely need your privacy at some point, and when you have friends over or children around, it can be difficult if the walls aren’t soundproof.
Also, if you’re working from home, then we can’t stress how much this aspect is important. You wouldn’t want to be distracted by the noise from the living room while you’re busy with work in your home office. Of course, it can be difficult to tell with empty rooms, but you can still test it by playing music in other rooms while the door to your office is shut.
This is the first thing that you see the moment you enter that gate. This is a vital part of any home, and its condition should be confirmed before you can sign the deal. There are several things that you’ll need to check.
Here is part of the checklist;
These are some of the factors to consider during the inspection. In addition to these, you might also want to check the design and see if it resonates with your needs. Some might be too old for a modern house, which means you’ll be forced to make a few changes—and that’ll be costly. It goes without saying that you’ll need to hire a professional roofing inspector for you to get the best results.
If there are some repairable defects, you can give the current homeowner some time to do the necessary. However, if it needs a lot of redesigning, then be sure to communicate the same and see if you can come to an agreement. Of course, if you don’t find common ground, then it’d be wise to move on to the next candidate.
Knowing the condition of the house is one thing, but understanding its ownership history is another. So, why is this aspect vital? Inasmuch as it might not necessarily mean something, a house with high turnover should signal a red flag. Of course, people move out for various reasons, but when you have three people moving out within a space of 10 years, then that says a lot about the home itself and the neighborhood.
It’s worth noting that even in areas with the lowest average homeownership length, it’s estimated that most people hold on to their homes for at least eight years. Therefore, if several people are moving out within that period, then that means the house could have some hidden issues.
Unless you can find out these issues from a trustworthy source, it’d be wise to reconsider your options. There are high chance that you might be frustrated and end up listing the house within the first few years. The disadvantage, however, is that this will worsen the ownership history, and you might struggle to find the next buyer.
Conclusion
Many people end up regretting their purchase simply because they didn’t pay enough attention during the property inspection process. It doesn’t matter whether it’s a commercial property or your home. Inspecting it before finalizing the transaction is quite important. Checking the roofing, floors, walls, and plumbing system can save you a lot of money in the long run.
It’s worth noting that some repairs like uneven floors might require a total redesigning, which could be very expensive. Therefore, be sure to consult an expert before moving to the next step to avoid any unnecessary frustrations.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
If you’ve been around the real estate industry long enough, you might be familiar with the phrase ‘real estate wholesaling.’ It’s one of the best investment options for someone who’s low in cash but still wants to try their luck in this field. However, just like any other business, beginners tend to struggle due to competition and lack of a reliable buyer network.
However, that doesn’t mean you should give up on your dream. There is, of course, a wide range of solutions you could try, and you can always find one that works best in your situation. One of those options is virtual wholesaling.
Technology has become the magic bullet for just about any business-related problem. It most certainly has played a significant role in the growth of the virtual real estate wholesaling market. As a virtual wholesaler, you can do your advertisements on social media and various real estate websites.
So, how can you leverage the benefits of technology and improve your real estate wholesaling project? This article compiles a list of must-read tips for anyone looking to venture into this business.
Before going any further, it’s important that you understand the meaning of real estate wholesaling. Inasmuch as it’s a common phrase, many beginners still don’t get what it really means. It’s simply a short-term strategy employed by investors to generate significant profits within a short period.
You might confuse it with retail wholesaling, but the two aren’t related in any way. When dealing with ordinary goods, a retailer purchases items from a wholesaler in large quantities and then sells them to consumers at a higher price. That’s basically how retailers make profits from their businesses.
However, real estate wholesaling is totally different because, for one, it doesn’t involve bulk goods. Instead, the wholesaler, in this case, signs an agreement with a homeowner looking to sell their home. The wholesaler then looks for potential buyers and assigns the contract to the best candidate available.
It’s worth noting that the goal in real estate wholesaling is to find the right buyer before the contract signed with the original owner expires. In other words, money is only exchanged between the parties involved once a suitable prospective homeowner is found. (1)
In the past, it was necessary for the relevant parties to meet face-to-face before any deal could be made. However, with the advent of technology, most of the tasks can be done using phone call applications. Call Cowboy, for instance, is a modern dialing platform that’ll allow you, the wholesaler, to interact effectively and even hold remote voice meetings with potential buyers.
Now that you understand what it all means to virtually wholesale houses, how can you use technology to meet your needs? Well, for one, the process isn’t as complicated as you might believe. As mentioned earlier, though, wholesaling real estate is a short-term investment that requires you to find a buyer within the shortest time possible. Therefore, you need to have a working strategy prior to stepping into the market.
Here are a few tips to keep in mind:
The first step towards a successful real estate wholesaling project is conducting rigorous research. With the modern real estate market and any business for that matter, the more effort you put into your preparation, the higher your chances of success. Knowing the basics of real estate is one thing, but familiarizing yourself with the whole process of wholesaling is another. (2) So, as a prospective wholesaler, you need to understand how things work.
You can search through the internet for resources that’ll give you vital information necessary for any beginner in the industry. Google and YouTube, for one, are ideal technological platforms that’ll come in handy in this process. Also, in your research, make sure you look into all the legal requirements to avoid unnecessary frustrations in the future.
Of course, reading materials online will be of great help, but it would be wise to consult someone who has seen it all in the market. Remember, real-life experiences give you the exact feel of what to expect.
Every business needs proper marketing strategies for it to rise above the competition and generate the desired profits. Real estate wholesaling is no exception in that regard. It’s worth noting that your primary goal in this business is to make profits, and that can only happen when the home is sold. So, the more people you advertise to, the higher your chances of finding a buyer who meets your needs and those of the original homeowner. (3)
So, which are the most effective marketing techniques in today’s environment? The main marketing approach in the modern world of business is social media networking. This is because almost everyone today has access to the internet and is registered to at least one social media platform.
Based on this, it’s safe to say that there’s a huge consumer base for any business on these social sites. You can, therefore, leverage this statistic to grow your outreach and build a network of potential buyers. Facebook, for instance, has an open marketplace where you can post your advertisement and wait for interested parties to contact you. Real estate and auction websites are another set of options that you might want to consider.
It’s worth noting, though, that even with the growth of internet marketing, phone calls and text messaging are still quite effective. Drop Cowboy ringless voicemail and other similar applications, for instance, can boost your outbound marketing by allowing you to deliver pre-recorded messages to the voicemail boxes of your potential buyers. The advantage here is the fact that you can send these marketing messages at any time of the day without being a nuisance to the other party.
Whether you’re a beginner or a seasoned investor, the next step is to find motivated sellers. After all, you’ll need someone who’s willing to sell their house for you to get into business. But how do you go about this phase? Well, unfortunately, this is where many beginners start going wrong and end up being frustrated during their first sale.
Fortunately, nowadays, one can easily access a wide range of information in the real estate industry on their mobile device with a click of a button. You can use such features to your advantage when looking for motivated sellers. Rather than going around looking for listed properties, you can just use online tools to find houses on sale and check important seller data.
Some of the information you’ll be able to access are pre-foreclosure data, any important details about the property, and the seller’s contact information. As such, you can contact the original homeowner if you’re interested in whatever you’ve seen and start making offers.
But before you make an offer to the seller, you must make sure that whatever you’ve seen on the pictures meets your needs. As a beginner, it can be quite challenging to evaluate the market value of a given property while keeping in mind the cost of repairs and other expenses since you don’t have enough experience in the field. Therefore, once you’ve determined the location of the property, you can start by researching the average value of similar houses within the area.
Again, you can easily access these important pieces of information online. Just visit a reputable real estate website and make the comparison. There are also many repair estimate tools that you can use to do your calculations, allowing you to come up with a competitive offer to your seller.
If this seems like a difficult task, then your alternative option would be to network with other investors and agents, especially those working within your selected location. Find someone you trust in your network and consult them about the deal and you should go about it. Any professional will advise you according to the current market climate, which should give you an idea of where to start with your offers.
Once you’ve crunched the numbers up, it’s time to present your bid to the seller. Again, make sure whatever you’re offering will cater to all the repairs and still leave enough room for you to make a profit. It’s always recommended that you find a sweet spot somewhere between the highest and lowest possible valuation of the house. Remember, if you go too low, you might scare away the seller, and if you go too high with your bid, you’ll struggle to find a buyer.
Finding motivated sellers and advertising their houses on social media platforms is a great way to start your real estate wholesaling business. However, once you’ve started gaining popularity, this method may no longer be sustainable. So, what’s your next step once you get to this stage? The best step you can take here is to build a business website where every operation related to your wholesaling venture will take place.
As mentioned, social media platforms are the most visited sites. However, having an engaging website can attract a portion of these online visitors. Adding videos on the website to bring properties to life can go a long way in attracting more users and potential buyers. Apart from pages where you’ll be posting new deals, you can add sections to your website for testimonials, blogs, and user engagement.
As mentioned earlier in the article, the real estate wholesaling business is constantly growing in popularity. But why are many people opting for this form of investment? What benefits does it bring to the investor? Here are a few insights:
One advantage is that real estate wholesaling is friendly to beginners, hence anyone looking to have a taste of the real estate industry can start here. For one, it doesn’t require any license, and you don’t need a college degree to join the market. Is your account running low? Fortunately, the investment needed in wholesaling is negligible as compared to other real estate strategies. As such, you’ll be able to hit the ground running without too much hassle.
If you’re still learning the ropes in the industry, then this strategy is for you. It’s very simple to understand, even for someone who has never closed a deal before. All you need to know is how to find motivated sellers, advertise the property to potential buyers, and reassign the contract to the most suitable candidate. With proper guidance, you can end up closing multiple deals every month.
If you compare the amount of time it takes you to gain returns from new construction and a wholesale deal, the latter emerges as the clear winner. Depending on your level of expertise, you can close wholesale deals within a few days. In fact, those people who already know their way around the market can do so within hours.
Another amazing fact about real estate wholesaling is that you can do this business from anywhere. With the growth of virtual wholesaling, you can literally sell a house based in a different country and time zone without physically visiting the place. In most cases, you only need a phone and a laptop to finalize a deal.
Real estate wholesaling is one of the most popular strategies in the industry. It involves a wholesaler whose responsibility is to find motivated sellers and buyers, quote two different prices for a given property to both and make profits from the difference. If you’re looking to join the rest of the industry, the best way to start is by doing enough research.
Once you’ve understood everything, you can start looking for sellers, assess the properties on offer, and make a bid. After agreeing with the seller, you can now start marketing the property using various technological platforms, like social media and real estate websites. Building your own website will also accelerate your growth in the market since people will know where to find you.
References
The real estate investments has shown phenomenal growth in the year over the past 14 months. Most people seem confused because prices in most areas have already gained 60 to 70% and in some places even more than 100%.
Investing in the same areas that have gained so much lately seems like a risky investment and this raises the question of what are the best real estate investments you can make in 2021-2022?
While diversification is important, diversification is not. I don’t agree that in order to make money, you have to invest in every new property that appears on the map.
No one really has the time to study and analyze dozens of societies and observe them all the time. It is best to choose two or three best options and keep your focus.
This will eventually help you manage your assets in a better way and earn much more profit than investing anywhere and anywhere.
Real diversification is not about buying plots of land in different societies, but about investing in different types of real estate. Plots, Buildings and rental properties are the main areas you need to diversify your investments.
While just like other areas DHA Multan quite a bit has been gained in the last year, yet the prices of the plot have not yet reached their peak. Although it may not show big gains in the coming year, the possibility still exists.
A realistic estimate of 1 Channel plot in DHA Multan should be 17 to 20 Million and in the coming years DHA Multan will slowly move to its target price.
It’s only a matter of time, as prices continue to rise wherever DHA Much begins to develop.
Keep your focus on blocks that are less developed and you will gain a good amount. The problem is that you will have to pay development costs amounting to 2.3 Million, let’s see how it will most likely play out.
The example below is just an expectation of an average transaction and a return on investment in DHA Multan.
Price of plot since October 2021: 110 Lacquers
Transfer expenses and commissions: 5 Lakes approx
Development costs: 2.3 Million approx
Total investment: 138 Lacquers
Expected Plot price in 2 to 3 years: 200 Lacquers
Sales expenditure and commissions: 3 Lacquers
Return: 59 Lacquers
ROI: 14.25% per year approx
Although it is more likely that prices will remain stable for a year or more, it is one of the best and safest investments for a 2 to 3 year cycle in the real estate market from now on.
Over the past few years, construction projects especially luxury apartments have been hugely successful in Lahore property market.
This is the evergreen segment of real estate and has shown very high gains even between 2016 to 2020, when most people thought that real estate is declining, but in fact, only Plots, files etc have declined. Learn more about construction opportunities here
One thing to consider is the choice of the construction project. That’s why you need to study, analyze and carry out all the research just as you do when you invest in societies.
Projects are much easier to analyze and research and do not involve complex and lengthy procedures. In addition, if you search, you will easily find a cost-effective and valuable project that will give you very good profits over the years.
To make a forecast we will use an investment in the Sixty6 Gulberg apartment building. Imlaak did all the due diligence on the said project which was analyzed and recommended for investment.
Expected investment and return on Sixty6 Gulberg will most likely look like this:
Apartment size: 556 square feet
Price per square foot since October 2021: 23000 per square foot
Total Price: 128 Lacquers (Paid in installments in 3 years)
Transfer expenses and commissions: Zero
Development costs: Zero
Total investment: 128 Lacquers
Expected price in 3.5 years: 40000 per square foot
Total price after 3.5 years: 222 Lacquers
Sales expenditure and commissions: 5 Lacquers
Return: 90 Lacquers approx
ROI: 20% per year approx
DHA Gujranwala announced the Election on October 8, 2021, the file price of 1 Channel plot has already increased by 1 crore. Although this could be a bit of a risky game if purchased at a higher price.
However, if prices do not rise after Election, it may be a good time to look for an opportunity to buy. Although much will depend on DHA Gujranwala’s master plan and how it continues its future development, the market will respond positively to the vote due to overall positive market sentiment.
There are two possible scenarios, or the prices will jump immediately after voting, as the market sentiment is very positive and this is the most likely scenario or the prices will remain stable or crash a bit.
The second scenario, where prices remain stable or slightly crash due to selling pressure, is more suitable for investment. I believe the plot prices will reach between 17 to 20 Million in the next 2 to 3 years.
In many ways, the gain is similar to that of DHA Multan. However, DHA Multan remains my first priority from now on as it is ahead in the evolutionary progress.
If you are stuck between both DHA Gujranwala and DHA Multan, I would recommend DHA Multan and if you have the investment for more than 1 plot, then 1 each in both will be a good choice. However, a detailed analysis is only possible after a vote and it is not very far off.
Last but not least on this list is Gwadar, it’s like a wild card that can be played at any time. The risks are great but also the rewards, if you are one of those who like to double or triple or quadruple their money, then you can look at it.
The next two years may offer you a very good time to buy at very good prices, if the prices don’t go up earlier, they will eventually do so in the next 2 to 3 years.
The possibilities are endless, but I will only offer to invest in Sangar and New Town and strictly refrain from investing in other societies. We have all seen this happen in the last investment cycle.
The next cycle can take place anywhere from 2021 to 2024 and you may see at least a 100 to 150% gain. This makes it very difficult to predict the exact ROI so I will not go into that detail.
In the end, it all depends on your personal preferences because one size fits all.
However, overall, I feel that because plots and files have increased by almost 100% in about the last year or so, construction projects are the best available option offering the highest yields in the next two years. The investment priority would be as follows:
Stay tuned to Feeta Blog to learn more about Pakistan Real Estate.
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Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Office | 325 | 2,600,000 | 780,000 | 54,167 | 520,000 |
| Office | 500 | 4,000,000 | 1,200,000 | 83,333 | 800,000 |
| Office | 540 | 4,320,000 | 1,296,000 | 90,000 | 864,000 |
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Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Studio | 327 | 2,750,000 | 1,375,000 | 45,833 | 550,000 | |
| Apartment with 1 bed | 510 | 4,250,000 | 2,125,000 | 70,833 | 850,000 | |
| Apartment with 1 bed | 579 | 4,825,000 | 2,412,500 | 80,417 | 965,000 | |
| Apartment with 1 bed | 582 | 4,850,000 | 2,425,000 | 80,833 | 970,000 | |
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Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Apartment with 1 bed | 450 | 3,375,000 | 1,012,500 | 70,313 | 675,000 | |
| Apartment with 1 bed | 452 | 3,390,000 | 1,017,000 | 70,625 | 678,000 | |
| Apartment with 1 bed | 512 | 3,840,000 | 1,152,000 | 80,000 | 768,000 | |
| Apartment with 1 bed | 639 | 4,792,500 | 1,437,750 | 99,844 | 958,500 | |
| Apartment with 1 bed | 643 | 4,822,500 | 1,446,750 | 100,469 | 964,500 | |
| 2-bed apartment | 697 | 4,897,000 | 1,463,700 | 101,646 | 975,800 | |
| 2-bed apartment | 761 | 5,327,000 | 1,598,100 | 110,979 | 1,065,400 | |
| 2-bed apartment | 764 | 5,348,000 | 1,604,400 | 111,417 | 1,069,600 | |
| 2-bed apartment | 785 | 5,495,000 | 1,648,500 | 114,479 | 1,099,000 | |
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Beware, this article will change your mindset and real estate investments, so read it carefully while we reject the false rich trap of real estate in Pakistan. Read this carefully and if you have any questions please comment and ask.
After nearly 10 years of going through various cycles of real estate myself, I’ve realized that most of us don’t create any real wealth. Do we live in a paradise of fools and amass false wealth? This prompted me to do some research and analysis of the previous 15 years of investment cycles to find out what exactly we are doing wrong.
During our search for the truth about real estate, we learned that there is a huge difference between returns in USD and PKR. While you may think you made money in PKR, this may not be true for USD. Eventually, almost every other thing in your life and your purchasing power depends on the USD and not on PKR. This means that if your wealth does not grow by the USD, then you are not actually getting richer.
USD is therefore one of the most important factors of wealth creation. This is especially true for foreigners who invest in USD and expect to take their returns in USD.
Just to understand how important this aspect was, we will choose Phase 6, 1 Channel plot in DHA Lahore as an example and compare its price in various years since 2005 in USD. Most real estate investments follow a similar pattern with small variations.
Year 2005
1 x USD = 60 PKR
Average price of DHA Lahore Phase 6 in 2005 = 9 Million ($ 150,000)
Year 2010
1 x USD = 80 PKR
Average price of DHA Lahore Phase 6 in 2010 = 6.6 Million (USD 82,500)
Year 2013-2014
1 x USD = 100 PKR
Average price of DHA Lahore Phase 6 in 2013 = 15 Million ($ 150,000)
Year 2016
1 x USD = 105 PKR
Average price of DHA Lahore Phase 6 in 2016 = 24 Million (USD 228,571)
Year 2019
1 x USD = 160 PKR
Average price of DHA Lahore Phase 6 in 2019 = 28 Million (USD 175,000)
Year 2021
1 x USD = 172 PKR
Average price of DHA Lahore Phase 6 in 2021 = 42 Million (USD 244,000)
Looking at the USD chart for Phase 6, 1 Channel plot is very clear that long-term trading is almost worthless. I know a lot of people who have kept plots in these phases for over a decade and although you may have overcome inflation or PKR depreciation, you have not created significant wealth.
Most people have this idea that the longer they keep a plot or file, the more fruitful it is. Unfortunately, I hate to report this bad news, which is not the case. At least the property in Pakistan does not adhere to that law. In 2005 the plot which was at USD 150000 is only USD 244000 today. Even buying it in 2019 gives you a much better ROI instead of buying it 14 years earlier in 2005.
Actually buying the phase 6 plot in 2010, then selling it in 2016 and buying it again in 2019, and selling it again now in 2021 would be really quite lucrative.
The reason that devalues a long-term business is that someone who has held the same property for 15 years earns much less money than someone who has held the same property for 10 years. This same aspect makes long-term trading riskier, which can eat away at your wealthy creative endeavors like a termite.
The speculative trading cycles are the next option that most investors choose. It’s a really good choice but with just two big problems:
Speculative trading is much easier said than done and it wasn’t until 2016 when the recession hit the real estate that investors realized what they were doing wrong. A considerable portion of investment has stalled in some areas because some investors felt it was worth trying to wait and hold on. These areas included Broadway Phase 8 commercial, residential plots in various places such as Phase 7, 8, and 9 of DHA Lahore, Malikpur, Shivpur 4 marl commercial files of DHA in Phase 8 ex Park View, and later on Gwadar.
As a result with a huge share of investments stuck in recession, investors have failed to seize new opportunities that have emerged from 2017 to 2020 such as indigo highs, Goldcrest Mall, DHA Peshawar, Downtown Mall and DHA Multan.
Although the return on investment was much better than long-term trading, but still not very impressive, as it included long periods of recession with zero to negative growth.
For an argument, let’s assume that everything went well and being the smart guy who is Mr. X, he kept money safe in the bank from 2005-2010 and then invested in phase 6 plots in 2010, then took an exit in 2016, and then took entry again in 2019 and has taken an exit now when the average plot price is at 42 Million.
To achieve this, Mr. X needed to make seven decisions during these 16 years. These included selling in 2005 and then investing in reliable locations to earn at least 10% a year. Taking an exit from wherever your money was and then reinvesting in 2010 in real estate. Repeating the same thing again from 2016 to 2019 and then finally taking an exit in 2021.
The location for an error is almost nil, if Mr. X had taken an exit in 2013, it could have gone awry. Similarly, if Mr. X could not take an exit in 2016 the results would be different.
Finally, it was also important to carry out a profitable business during the recessionary periods between 20015-2010 and then in 2016 to 2020. Timely exit from these investments and regaining entry into real estate should be surgically accurate.
How many of you are confident that you can read the market and do this type of business in the future?
Rental income has always been considered a very essential and important source of income. However, not many people believe that it can enrich you as a speculative business. Some general problems you may encounter with rental income are:
Choosing a rental property that would give you at least a 6% rental yield and some good capital gains over the years can be a challenge, but it is much easier to execute than a speculative business. In addition, you now have the option to invest in real estate that can offer an 8 to 10% return on annual rent above your initial investment.
Rental cash flows may seem minimal when you start, but over time they build up and give speculative traders a run for their money. It won’t be wrong to say that slow and steady wins the race because you have a much better chance of being rich if you invest in rental properties instead of plots of land.
Now for the sake of argument let’s say, Mr. A, who is not as wise as Mr. X and was not sure if he can pull off that miraculous 16-year cycle with such precision. That’s why he decided to buy a property that gave him regular cash flows and average capital gains.
Mr. A has invested € 9 million in wolf ownership, which has given him an average of 10% in annual capital gains and 6% in rental income, which has increased by 10% a year. Ultimately, he invested his rental income in assets similar to where Mr. X kept his money during recessions to make 10% profits a year on them and the results will surprise you.
YES, it is quite true that Mr. A made almost the same amount of money as Mr. X and without ever having to go into the complications and risks that Mr. X took.
The magic actually happened because of the compounding effect on the rental income, this is one factor we never consider when we discuss rental properties.
The 16 years of rental income, which started at just 540000 a year, ended at 4 crores when accumulated and put together at only 10% a year. This is where most of you do your math wrong and only calculate the rental income and do not consider the impact of profits on your rental income.
The speculative business cycles of real estate and rental income are almost equal when creating real wealth. Renting is an easier and more stable way to secure your success compared to speculative trading. You can certainly mix them both or opt for rent alone, but I would never recommend just opting for a speculative trade.
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Selling and Transferring Property in Pakistan is a regular occurrence in the country, where hundreds and thousands of people sell and transfer property. For those familiar with the process, the transferring procedure might just be a piece of cake. But for people who are new and confused about where to start, you’ve come to the right place.
Before we jump into the tricky aspect of this process, let’s clear the air about what exactly transferring property means and why it is an essential aspect of buying and selling property in Pakistan.
As per the law, any individual who owns a property should have the land or property verified under their name. The land should be under the designated ownership; only then can they sell the property to themselves. This is the basic requirement of selling a property.
In Pakistan, the transfer of any property generally consists of the owner transferring the title of the land from one person to the other. Transferring property can occur in multiple ways for various reasons, such as a mortgage, gift deed, inheritance, lease, exchange, etc. All such explanations are why transferring is an essential legal procedure.
All individuals who can sign a contract are authorized to transfer property ownership in Pakistan. According to the Contract Act 1872, a contract is claimed as a binding agreement between two parties, meaning that it is a legally binding document for any sale and purchase of land in the country.
The transferring process, although time-taking, is a simple and easy process with not many legal proceedings. We’ll break down the process into different steps to help you better understand.
This is the very first step of selling after you’ve successfully secured a client. This involves the buyer giving approximately 1 / 4th of the total price. If not the exact percentage, there is an agreed amount between the buyer and the seller to indicate an agreement from both sides of the party.
The Token (Bayaana) is given by the buyer with a series of negotiations and based on a contract, in which all details are specified. After this, the seller holds negotiations with any other potential buyers.
Usually, a specified period is set and written in the contract for the full amount to be paid. If the sale falls through, the token is returned. But if the full amount is not paid in the specified time, the seller has no obligation to return the token, even if the sale doesn’t go through.
A sale agreement contract is a set of required documents that include all information related to the seller and buyer involved in the transfer process. In Pakistan, these are the required documents that are attached with the Bayaana form:
To carry out the transfer process smoothly, you need to collect the following documents organized. You’ll need:
This list of documents can also include some more documents depending on the province, region, area, etc. (A lot of documents, we know, but verified property takes tough measures!)
Source: Pinterest
This is one of the essential and final steps of the transfer process. You’ll need a stamp paper to draft the deed for the sales; that will be the contract for the sale. You can choose. Buyers; will be required to pay stamp duty and taxes during this step.
Let’s take a look at this easy breakdown of the tax duty involved:
In Pakistan, the sales deed is usually recommended to be drafted by a property lawyer or a property agent aware of the bylaws and the rules involved in the process. This is a particularly safe option to avoid any complications that might arise in case you are doing it yourself.
Although, people who are selling and buying property as a business have become familiar with constructing the ideal draft for this deed, which can be done easily with the help of the internet. However, the common practice and recommendation are to take the help of a lawyer to avoid any future complications that may occur.
Source: Freepik
Finally, after a long process, you’ve reached the last step. You can take the sales deed (inscribed stamp paper) along with the required documents to the registrar’s office. From here, the sub-registrar will call both parties simultaneously and hear their verbal agreement for the trading of property.
You’ll need to sign the documents and put in your fingerprint to verify the final sale and complete the transfer process. Once this is done, the official will register the sale deed successfully, then the transfer process is complete, and the property is now successfully transferred to the buyer.
If you’re wondering what the person who helped you secure a client and help you proceed with the sale and transfer of the property is, there is a commission that the dealer/agent gets from the client. Although there are no specific laws to govern and record the work of real estate agents and dealers in Pakistan, the general practice remains a constantly changing variable and experiences changes from time to time.
Usually, the commission of property agents comes to around 1% of the total value of a property. This 1% of the value is each from the buyer and seller as the commission to the dealer. If the buyer and seller both have different agents, then both agents get to keep a 1% commission each from their own clients. Sometimes, property agents will ask for as high as 2% of the property value, or even lower than 1%. The amount varied according to the success, reputation of a property dealer, or property value.
Suppose you’re looking to learn more about the legal aspects and procedures involved in property buying and selling. In that case, you can stay connected with our blogs at Feeta.pk, where you can easily find comprehensive information to guide you through the real estate market.
Several localities offer residents the option to join a homeowner association. These associations can be quite helpful in resolving minor community issues. However, they may come with several drawbacks that need to be considered. To understand the pros and cons of joining HOAs, you must first understand what HOAs are, what they do, and how they affect homeowners.
What are HOAs? A question that you might be wondering. The term simply refers to homeowner’s associations, which manage a community for the benefit of its residents.
Homeowners associations exist to manage residential communities, maintain curb appeal, and keep property values high. In addition to this, property owners’ associations manage residential communities. Home developers are responsible for initiating the association.
As a result of legal advice, the developer drafts the association’s governing documents. Bylaws, amendments, rules and regulations and articles of incorporation are among the documents.
Simply put, it would mean living in a house that is a part of an association. Although there are plenty of benefits to living in an HOA, it may not be suitable for everyone. Living in an HOA community, for example, gives you access to amenities you would not otherwise have.
As soon as you move into your new home that is registered with the association, you become a member. The HOA’s governing documents are automatically applied to you as an HOA member. The documents outline the dos and don’ts of a homeowner. Rules like these help preserve property values and keep neighborhoods safe.
Managing an HOA entails taking care of the best interests of the community, enforcing rules, and setting the amount for dues. A review of the HOA’s governing documents is recommended before moving into a homeowner’s association.
Here are some pros of HOA that can help you make a decision.
The aesthetic appeal of a well-maintained community contributes to the ease of living within it as well. A landscape that offers clean roads, trimmed trees, and blooming flowers, brings harmony and peace. The wellbeing of a community is important, and it is comforting to know that these services are in place.
The benefits of living in a community with an HOA include common community areas being maintained by the organization. Swimming pools, playgrounds, barbecue areas, and community centers are included.
The spaces can be enjoyed without having to worry about maintenance. In addition to maintaining the landscaping in front of each unit, some HOAs also take care of maintenance in the backyards of residents.
Property values are a primary reason people buy an HOA home. Your board helps you protect your investment and ensures its value remains the same. It is the owners’ responsibility to maintain their lawns, homes, and personal property in accordance with community laws. This offers several benefits for the homeowner as well as the community. The members of the board live in the same community, and they are just as eager to see it thriving as you.
Every homeowner must follow certain guidelines. Prior to signing on the dotted line, buyers should familiarize themselves with the governing documents. There isn’t much tolerance for unruly behavior in a typical association – from a wild party in someone’s backyard to disregarding architectural guidelines. The neighborhood has a board that mediates neighbor disputes and sets forth consequences when things don’t work out.
Let’s take a look at the cons of HOA.
Residents of the community must pay HOA fees because the association maintains the common areas and exteriors of homes.
The fees for these amenities vary from community to community. In addition, HOA fees are not set in stone, so they are subject to change from time to time. When the association is unable to collect enough funds to maintain the community, the association may have to increase the monthly fee.
Paying your HOA fees is an important part of living in a community. Fees must be paid by all residents of the community. If the HOA remains unable to collect enough money from residents, the property may not be able to be properly maintained. This can result in the association firing the property manager, causing the community’s appearance and condition to deteriorate.
The HOA sets requirements for your home’s appearance. Ranging from what type of front door and windows you can have to decide what color your front door or shutters can be painted – the association has complete control over your home’s appearance. You may even be restricted in how much outside decor you can use and how many vehicles you can park in your community. If you violate the community’s rules and regulations, you could receive a fine.
Poor management can lead to deterioration in some HOA communities. As a preventative measure, electing board members who have the association’s best interests at heart is the perfect way to avoid such a situation. In addition, many HOAs hire a management company to ensure responsibilities and duties are properly fulfilled.
A lien or foreclosure is always a concern when living in an HOA. There are certain HOAs that can place links on your property and then foreclose on it. The lien will only occur if your association due aren’t paid.
It’s important to consider the pros and cons of living in an HOA before making a decision. Paying monthly fees and adhering to the rules of an HOA community is necessary. You’ll also benefit from things like preserving your property value and being able to access well-maintained amenities (like landscaping). In the long run, you will benefit more from HOAs if you can tolerate the minor inconveniences they bring.
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Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
-Franklin D. Roosevelt
This quote perfectly summed up the advantages of investing in real estate and for all the right reasons. Real estate is said to be one of the most lucrative investment opportunities around the globe and, Pakistan is no exception.
In Pakistan, real estate is considered to be one of the most common and widely practiced investment opportunities. Every year, millions of people invest in real estate because of its benefits and financial rewards.
And, we will tell you why you should invest in real estate.
We have jotted down some of the pointers that will help you understand the advantages of real estate investment in depth.
Real estate is one of the best investment opportunities out there because of the following reasons:
If you are planning on investing in real estate make sure to know the pros and cons of investing in real estate and tax on property.
Before making any kind of investment in real estate, do consider the following factors:
In real estate, there are high chances of portfolio diversification. It means you have many opportunities to invest in. You can invest in commercial properties, residential properties, and industrial areas and vice versa. Check out factors affecting the real estate market.
It is important to know about the different real estate options and how you can use them to reap financial benefits.
For instance, residential properties can be used for accommodation, rentals and bread and breakfast services. On the other hand, commercial spaces are solely dedicated to business and commerce.
Before investing, always consider the credibility and records of the real estate company. Make sure that their product offerings are approved by local developmental authorities. Also, ask around and try to know as much as you can about the company.
Also, if they have an online presence, visit their social media accounts and read the customers’ reviews.
Try to contact the people who have been the customers of that specific company. Ask questions and try to grasp as much knowledge as you can.
Sometimes, others can provide you with valuable insights as well. So, listen carefully and try to gain as much knowledge as you can.
Also, the ratio of the customer base is crucial because it tells you about the success rate and credibility of the company. The higher the customer base, the higher the worth of the company.
Transparency is the most important element in real estate. It ensures the validity and reliability of the company. Before financing any sort of real estate project, make sure that the operations and processes of the company are clear and transparent.
There are many real estate agencies out there that do not ensure transparency. For instance, they will not inform you about all the costs associated with the property such as maintenance costs vice versa.
Before investing, make sure that the investment is 100% safe and secure and that there are no hidden terms and conditions attached to your purchase. By safety, we mean that your money will be safe with the company and your money will not get blocked in any way possible.
A good investment is secure, gives you ROI and has high liquidity. If all these three elements are present in your investment, you are good to go.
If you are looking for transparent and secure real estate projects within major cities of Pakistan, we suggest you have a look at the following projects:
These projects are located at prime locations, making them stand out from the crowd. If you have low capital, don’t worry, because you can still invest in these lucrative projects. You can invest in these projects from 17 lacs and onwards.
The best thing about these projects is that they will provide you with annual estimate gains and a money-back policy.
The location of your investment can make all the difference. For instance, if you are investing in a shop in a commercial hub, your chances to benefit from the investment may improve by many folds. Similar is the case with residential properties. Residential properties will not only ensure a good resale value but they will also yield good rentals. Checkout invests in a shop or a house.
The State Bank of Pakistan (SBP) reported that the construction and housing sector has been consistently higher than nine percent over the past decade.
It is crucial to be informed and up to date with all the latest market trends and news. It will not only allow you to make a better and more informed investment decision but it will also help you to become a risk aversive.
Many real estate projects sound lucrative and attractive. However, they may come with a high price and risks. For instance, some firms have very rigid installment plans. Look for projects that offer you flexible and easy-to-pay installments.
Also, be clear about the down payments. Usually, if you pay a larger down payment, you will have to pay easy and manageable installments and your number of installments will also reduce.
Not all real estate firms offer a money-back policy. However, Feeta.pk Pakistan’s smartest property portal offers a money-back policy.
It means that if you think your investment purchased by Feeta is not making money, you can always sell it back to the company. Feeta is providing real estate investment solutions. No one offers such services in Pakistan where you get a secure and transparent investment opportunity with a money-back option.
These are some of the factors that are of pivotal importance. Make sure you consider all of these before making any kind of investment.
If you want to know more about real estate like 1 marla to square feet follow real estate podcasts, real estate books, real estate YouTube channels, and real estate blogs.
If you have any questions or confusion, let us know. We will be more than glad to help you out. Get to know the top insurance companies in Pakistan.
None of the information published in this article should be constructed as investment advice. We strongly advise our readers to always do their due diligence before investing in any project. It is the reader’s responsibility to know the laws regarding investments in their region.
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Lahore is a wonderful city with a distinct culture and personality. Anybody could be seduced by the city. In a nutshell, Lahore has something for everyone, which is why so many people want to relocate to the city. The need for houses in Lahore is growing in tandem with the city’s increasing population. Lahore is also attracting significantly fewer capitalists than before, due to the recent trend of investment in farmhouses. Everyone wants to be in an area that is not just safe but also links them to all of Lahore’s large cities. Raiwind is now at the top of the list. Raiwind is a prosperous community. The area is just outside of the main city. Despite this, the population of such an area keeps growing due to the availability of affordable new houses.
The road has become a center of infrastructural and residential projects due to its association with a particular. Raiwind Road today houses some of Lahore’s most creative residential properties, which have been built at breakneck speed. These home projects were designed with world-class features and secure gated surroundings in order to provide an excellent attainable lifestyle to their inhabitants. In this blog, I am going to discuss each of the most frequent and important residential projects on Raiwind Road.
At Raiwind, a number of developers have created new and premium residential buildings. As a function of such a step, businesses seem to become increasingly interested in the area. So, if you’re looking for a home away from the bustling and bustle of the city even while remaining connected to it, look at housing projects on Raiwind Lahore.
The residential developments we’ll be discussing are some of the industry’s most successful real estate projects. Additionally, they have gained permission from all appropriate authorities, making them safe and profitable property investing decisions in Lahore.
LV Heights is a beautifully designed vertical residential area that offers exquisite residences inside an upmarket and safe setting. In the excellent Lahore Villas district, which is immediately connected to the main Raiwind Road, the apartment building provides well-designed studio flats, 1- and 2-bedroom apartments.
With direct access to Raiwind Road, one of Lahore’s busiest thoroughfares, LV Heights too has a high value of the property and also provides inhabitants with exceptional navigational convenience. Adda Plot, Lahore Ring Road, Safari Zoo Park, Shaukat Khanum Hospital, and a number of great higher education institutions are within a near range.
LV Heights offers users a futuristic lifestyle it’s anything but ordinary as a high-end apartment complex. A 24/7 safety system, subsurface wiring, in-house gymnasium, laundry facilities, children’s play area, roof-top restaurant, devoted car parking, elevated lifts with achieving sustainability, and a swimming pool are some of the most notable factors that influence the development.
Tameer Developers, a well-known company in the development sector, is the mastermind behind this beautifully designed apartment complex. LV Heights is recognized as one of the top housing projects along Raiwind Road attributed to a combination of ground-breaking features. It will almost certainly lead to a great return on investment. Given the project’s wide scope, it offers amazingly low per-square-foot pricing, making it incredibly attractive to investors.
Icon Valley Phase II is Iconic Valley Developers’ flagship real estate development. Icon Valley Phase I, their previous development, was just a complete success. Icon Valley Phase II, per the developers, is set gonna take it to a whole other level. It really is a precisely constructed housing scheme that provides inhabitants with all the latest conveniences. This development enjoys a rather practical position as it is located upon the main Raiwind Road but is only a few minute’s drive away from numerous famous places and amenities like Lahore Ring Road, Safari Park, Shaukat Khanum, as well as the Lahore-Islamabad M2 Motorway, and others.
Icon Valley Phase II introduces relatively affordable yet fully-featured townhouses for the first time in Lahore’s property sector and is another key appeal of such an up-and-coming housing project. They are far less expensive than identical properties in many nearby housing projects. Considering their inexpensive cost, these townhouses offer access to those projects’ noteworthy facilities.
When you miss out on Icon Valley Phase I, it’s an even larger and greater chance. Real estate prices in the Raiwind Highway have increased by 40-50 percent in the last three years and are likely to go up more down the valley, increasing the housing scheme’s competitiveness. While Icon Valley Phase II is mainly a housing property, this has a lot to give to a wide range of business investors. The project’s real estate consists of retail stores, corporate offices, residential apartments, and, of course, townhouses. Property in just this project is moving rapidly as it’s been approved by the Development Authority (LDA) and provides flexible payment plans.
If you are looking for a modern and comfortable apartment then consider Al Hayat Residencia. This vertical residential project’s remarkable characteristics, combined with its popular area, make it a fantastic addition to that same Lahore residential real estate market. Al Hayat Engineers and Developers, another of the industry’s most renowned names, is just the minds behind all these high-end apartment projects.
This is one of the most luxurious residential developments in Lahore, located on Raiwind Road. Al Hayat Residencia was designed to be a safe, gated community with all the conveniences of modernity. The apartment complex includes one-, two-, and three-bedroom units with modern architectural drawings and is well-designed.
A community center, an indoor cinema, a mall, a rooftop restaurant, a comprehensive gym, and a material removal social aspect will all be included in the vertical accommodation plan. One of the features of the Residency is the main courtyard of magnificence, Al-Hayat, which allows you to completely enjoy the community’s existence. It will be a wonderful location for family and friends to gather and play with children in a protected manner.
This new home development is being built on Safari Rd, which is a good spot. Al Hayat Residencia is the wonderful and best-located apartment building in Lahore, with Raiwind Road just a short distance away. Lahore Safari Zoo and Shaukat Khanum Memorial Hospital are two of the big features in the area. You can also enjoy easy access to Lahore’s well-known Ring Road if you live in this grand-scale apartment structure.
All other investing prospects are based on living accommodations. Investors in the project might expect financial gains of up to 80% over the next four years, according to local real estate specialists. A simple payment plan is an easy way to invest. Due to a number of intriguing characteristics, the project inventory is reaching completion. Time is running out, and you must work diligently to obtain an apartment in this sophisticated building.
Platinum Homes
Platinum Homes, one of its most anticipated residential developments on Raiwind Road in Lahore, and expected to elevate the standard for contemporary apartment living in the city. The gated community was designed with edge lifestyle facilities in mind, assuring that its members have the highest convenience and safety. For round security surveillance system, a constant energy supply, a state-of-the-art water filtration system, well-paved roads, and enough green spaces are just a few of the amenities provided by such an up-and-coming home plan on Railwind Road.
The project’s excellent location, which is directly linked to the main Raiwind Road, provides direct access to many major highways, landmarks, and facilities, including Adda Plot Junction here on Lahore Ring Road, the Lahore-Islamabad Motorway M2, Shaukat Khanum Hospital, or the Lahore Safari Park. Platinum Homes’ housing estate includes fully prepared three-marla houses with attractive interiors and exteriors. This residential development’s residences have a known and understood space of 1,482 square feet and three bedrooms, making them perfect for modest homes.
Platinum Homes, the brainchild of Platinum Construction Ltd, has received all necessary approvals. Feeta.pk, Pakistan’s most reliable property portal, is advertising it. As a result of all these factors, it’s among the safest property investment choices in Lahore.
Regardless of the fact that Platinum Homes is built with low features, this project’s property prices are surprisingly low. Furthermore, as an investment, you can buy a home within the project with easy 2-year payment plans, adding to your convenience. Check out our Platinum Homes project description to get extra information on this very well residential community.
J Heights is envisioned to beautify Raiwind Road with its incredibly attractive exterior and outstanding property investment scope. That is a high-end project in Lahore that offers luxury apartments. The property is practically attached to the central Raiwind Road and is conveniently located close to numerous prominent monuments and amenities such as Emporium Mall, Orange Line Station and Motorway M2, etc.
J Heights is a new high-end housing property filled with all the delights and conveniences to let you have an unparalleled urban experience. A rooftop recreational area for major parties and fine dining with recipes by renowned chefs, housekeeping service, a prayer hall, a smart door system, protected parking areas with valet services, 24/7 security with CCTV surveillance, enclosed sports stadiums as well as the gym are just a few of the project’s top-of-the-line facilities and amenities.
If you’re searching for beautifully built luxury flats in Lahore that you can afford in monthly installments, J Heights is the place to go. It’s one of the primary reasons for the apartment complex’s astounding success since it’s presently one of Raiwind Cycleway’s more popular housing developments. You can choose between 1- and two-bedroom luxury apartments for investing in J Heights. The entire project’s interior has been equipped using high-end fittings and fixtures to create a sense of luxury.
J Heights is generating headlines not only for its high-end features but also for its excellent financial potential. Zameen.com, as a marketing and sales partner, has given it its seal of approval. The project has been carefully reviewed for any potential legal difficulties, and it is a completely risk-free investment. The property price on the Raiwind Main Road has increased significantly in recent years, implying that a rising project like J Heights inside the area will provide a good return and a strong rental return.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
The Federal Board of Revenue (FBR) has postponed its determination on the application of escalating housing values levies in 40 major cities until January 31, 2022.
According to the board’s 2019 Strategic Regulatory Regulation (SRO), Minister of Finance Shaukat Tarin and FBR high-ups feel that property value rates should be hiked by 25 to 30%. Since one of the criteria of the Global Bank’s $400 million Pakistan Raises Revenues (PRR) loan is also that value management rates be related to real market pricing, nothing is being decided yet.
Although it was agreed that the property will be assessed when a shareholder overvalued a home or even if the Alerted valuation tables were devalued, the FBR offered detailed instructions inside an Office Brief as to how to evaluate and execute property cost differences. According to FBR officials, the corporation can assess the market value of assets owned, therefore new valuation tables were produced on Dec 1, 2021, for 40 major cities, bringing properties closer to their genuine market value.
Per the authorities, the FBR has received complaints from a variety of sources, including real estate brokers and housing societies, who have pointed out irregularities and inaccuracies in the recently released value tables. According to the FBR, all solutions to these concerns will be re-notified, with a deadline of January 31, 2022 for execution.
For more information on the real estate sector of the country, keep reading Feeta Blog.
The Ministry of Abroad Pakistanis and Human Resource Development (OP&HR) has put up nine residential complexes throughout Pakistan to house overseas Pakistanis. The Phase-1 Lahore Overseas Pakistanis Foundation (OPF) Housing Scheme, Phase-1 expansion, and Phase-II OF Farmhouses in Larkana, Dadu, Peshawar, Gujrat, Chitterpari Mirpur AJK, and Zone-V Islamabad are all under development, according to an official source. He said that such programs gave overseas Pakistanis millions of acres in attractive localities including Islamabad, Lahore, Gujrat, Peshawar, Dadu, Larkana, and Mirpur.
The federal government has decided to start developing nine housing developments for Pakistanis abroad all around the country, according to the Ministry for Abroad Pakistan & Employment.
Lahore Overseas Pakistanis Foundation Housing Scheme Phase One, OPF Farm House Phase One Expansion Plan and Phase Two Construction, Larkana, Dadu, Peshawar, Gujarat, Mirpur Jammu & Kashmir, and Zone Five are among housing projects mentioned by ministry authorities. Housing projects are planned in Islamabad.
The federal cabinet has received an update from the Interior Ministry on the issue and will make a decision soon. This apartment complex would be built on Park Road Zone Four in Islamabad, according to the source. The research will benefit around 40,000 individuals, with 6,000 housing units included.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
The COVID pandemic continued to plague the global economy in early 2021, providing challenges and opportunities in Panama real estate. As markets began to reopen, sales and rents in Panama increased as buyers saw the country’s established market as a safe haven in turbulent times.
As the year draws to a close, let’s take a step back and highlight the big news of 2021.
With home prices rising in the U.S., investors were looking for property investments that could provide real growth in the coming years. Panama was once again seen as a great alternative, providing stability, a dollar economy and high-quality properties below their market value and replacement cost.
Cryptocurrencies have begun to play a role in sales as more owners have expressed a willingness to accept bitcoin and other forms of crypto. It is no longer a theoretical concept, it is clear that crypto will play a more important role in the future. The government is also investigating legislation that would make cryptocurrency an accepted currency and create a regulatory framework for transactions.
This was the year when the man-made islands in the Gulf of Panama took their place among the most successful in the world. Sales were on fire, with Beach Club Residences, Seascape, Almar, Waterfront 21, and Casa del Mar joining the list of sold-out developments. Construction has also advanced on the key infrastructure, with Panama City’s marina and the largest water sports club opening for business.
Vacancy rates jumped and rates slipped at the height of the pandemic. That all changed in 2021. PPR’s property management department has seen occupancy rates rise to more than 95% and rental rates have steadily increased. There was a clear flight to quality, as apartments in upper buildings attracted competition. During the year, PPR’s property management department added 75 units under management as more investors turned to our trusted professional team to take care of their investment property.
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The pandemic has promoted the cancellation or postponement of an unprecedented number of developments. In 2021, there were almost no new projects launched and banks were reluctant to finance new construction loans. As a result, there was an increase in sales and absorption of unsold developer inventory, plus resale apartments that were long on the market ultimately sold. The decline in supply will have a profound impact on the market – and prices – going forward.
Investors have increasingly focused on already rented condominium portfolios in the buildings with the highest rental demand, such as Ocean Club in Punta Pacifica, Yoo Panama on Avenida Balboa, and the Regent in Costa del Este. Investors usually bought packages of 5 to 15 units of rented apartments in these popular buildings, generating cash flow from day one. These wholesale buyers focused on buildings with unique amenities and high demand from multinational executives.
Construction has continued on some of the most widely anticipated developments in Panama City. The list includes the Wanders & Yoo downtown, the La Maison de Fendi Casa in Santa Maria, and the Beach Club Residences on Ocean Reef. In many cases, buyers who have purchased units at pre-construction prices are about to realize significant increases when the buildings are finished and relocations begin.
Panama has established a new “Golden Visa” rule providing a way to housing for property buyers, a huge advantage in the international market. The visa was a big step forward and was one of the most discussed topics among PPR clients. The government has also implemented a new “digital nomadic” visa making it easier for remote workers to set up operations in Panama. Both policies have strengthened Panama’s image as one of the most welcoming countries in the world for international real estate buyers.
All these trends of 2021 should cross into the new year. If anything, they are likely to grow as the pandemic continues to fade and markets return to normal. With all these factors in place – and the economy expected to grow significantly – next year is set to be one of the best in the history of the Panama market.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Pakistan Real estate.
If you want to diversify your Investment Properties, real estate is a great choice. The benefits of investing in real estate can be significant. However, it is important to make sure that you are buying the right one, as your chosen investment property can either make or break your success.
So, whether you’re a new real estate investor or an industry veteran, it’s essential to be mindful of anything that can cause you problems in the long run. To make a well-informed choice, you can get help from professionals or remember the following red flags:
Mold is not the only factor that could contribute to bad odors within some investment properties. A rotten egg odor can indicate a serious problem with your source system.
If you smell gas, you can call the local gas company to inspect the property’s pipes for leaks. Even the smell of a dead rat should raise a red flag, as that means there is a possibility of a pest infestation, which is great not for investment properties.
Another red flag to avoid when buying your first investment property is fundamental things. Remember that you should not miss inspecting the crawl space or the basement of any property.
Fallen walls, cracks in the foundation, or water leaks in the basement are some of the things that are expensive to repair. So, it is best to check for such issues before signing the agreement.
Any history of extensive repairs is a warning sign for investors, as they can be costly after they need to be repaired in the future. If the seller’s disclosed package does not provide enough details on the subject, it is wise to ask for real estate for further details.
When investing in any property, you may want to know about its surroundings and former residents. Several buyers will take less of the property if it was the site of an incident or crime.
You should also check the market history of the property. It can be a red flag if it sits on the market for a long time. There’s a reason why it hasn’t been sold yet, and as an investor, you should know the real reason behind it before you finalize your decision.
Also, do not buy a property with a history of multiple homeownership expenses. It is because there may be a problem with the property that its previous homeowners decided to sell it. To find out more about the cost of homeownership, check online or get help from professionals.
Dangerously wired electrical systems should be taken seriously, no matter how ready you are to invest in a property, as it may not only pose a detrimental threat to your property but also to you. Therefore, be sure to test the electrical capacity of the property before you agree to purchase it.
Connecting several devices at once should give you an idea of the ability of the investment property to produce energy safely. To thoroughly examine the electrical system, a professional electrical technician can assist you.
Even if it is difficult to spot the structural problems of an investment property, there are some signs that you can check. Look for any cracks in the masonry or plaster as they could be a sign of something serious.
For example, cracks above the windows or doors could indicate failed sills or some structural problems that could be costly to repair in the future. Some signs of structural problems include uneven floors, sloping walls, and roof leaks.
Quick fixes can make things better than they seem. However, they can be a sign that you will not be able to get what you pay for.
For example, if you see a freshly painted wall, it may be a sign that the previous homeowners are hiding something. Most often, a freshly painted wall or ceiling could mean that there was water damage or mold problems.
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A nice, set interior can also distract you from the problematic exterior. Therefore, if you don’t want to deal with the hassle, take care of the cosmetic corrections of the property.
If there are locked doors on your preferred investment property, never agree to buy it unless the owner gives you access. Maybe it’s something the owners don’t want you to discover or see. In some cases, it’s as innocent as the owners don’t want you to see their valuables or stockpiles. However, other owners could hide the damage.
Buying real estate should never be a gamble. That’s why you need to make sure you have all the information before you agree to sign the contract.
It is recommended to review the 3R report of the property, it provides information on the work done by the owners to improve the property. For example, if the seller claims to add a new cover, it should be in the report. If it is not, there is a chance that the deck was built against the code and may be insecure.
Although there are aspects where permission is not required, such as changing windows or redoing a roof, it is still important to check the permits for major electrical and structural work. That way you will know whether or not the work has been done correctly and in accordance with the law.
Various project problems can make it difficult to rent a property. For example, if you have a three-bedroom farm, but one of the bedrooms is very small, it may be a disengagement for your potential tenants who are expecting full-size rooms.
Small bathrooms or kitchens can be another problem. Few closets in a home can drive away potential tenants. Although a bad floor plan is not often terrible, it can still limit the property’s income potential.
Creative photography can quickly disguise problems you never knew existed until you stepped into the house. Make sure you always take a personal walk before bidding to see the condition of the property, especially with your first few properties.
It would be more skeptical if the list has no photos or was limited and missing external photos. Remember that just because the outside of the home looks tidy doesn’t mean the inside is in good shape.
If you come across a salesperson who seems to be afraid that you will not make a good offer or that you will withdraw from the sale, this is an indication that you are dealing with a major problem. It doubles for anyone who is secretive about the parts of the property covering the walls with heavy curtains or denying you access to separate areas. There may be damage from fire or water that they are trying to hide.
The best thing you can do to examine the property thoroughly is to hire an inspector. They can help you negotiate the price down based on what you find out from the inspection results.
Another huge red flag to avoid is amateur work. If an unlicensed contractor worked on the property and did not know what they were doing, the result could be detrimental and unstable. Additionally, if they have been working on electrical or plumbing, it can result in insurance and safety issues.
Keep in mind that poor plumbing and electrical work can result in problems such as fires or pipes, causing more damage to the property. So, if you notice amateur labor in your favorite investment property, better proceed with your other options to save your time and money.
If the price seems too good to be true, it probably is. If the property is cheap for the area, there is probably something wrong with it. There are no incentives to sell properties below market value unless there is a big reason behind it. On the other hand, if you are dealing with overpriced properties, you may have a homeowner who has a biased perception of their property.
To find out if the property is less expensive or overpriced, consider hiring real estate professionals to get the prices of similar homes in the area.
An unpleasant neighborhood is another red flag to avoid when buying investment properties. Note that you can change almost everything about the properties by renovating them, but you will never have the opportunity to change the location.
If the property is located in a location with an undesirable school district or a high crime rate, you may find it difficult to attract potential buyers. The same can be said if the property has location-specific problems or is located in a flood zone. To avoid problems with location, it may be best to do your research in advance.
Regardless of the reason why you are buying investment properties, it is always a good idea to invest in the best possible properties available in the market. This will not only help you enjoy more profits in the future but will also help you reap the rewards of your hard earned money.
If you want to choose the best investment properties, here are the tips to consider:
When looking for an investment property, keep in mind that the value you can get from your investment will depend on how desirable your chosen property looks to your potential tenants. Basically, location is the key.
People tend to look for housing close to work to avoid the hassle of commuting, which means that real estate close to the cities is in demand. While some prefer properties near school districts and other establishments convenient for their lifestyle. So, try to look for investment properties near the city.
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If you don’t know how to start your hunt for investment properties, check online or work with experts who can provide you with options on the best places to consider for your investment. With this, you will be able to find the right deal for your investment purposes and enjoy more profits in the future.
Often, extraterrestrial features are built simultaneously by the same developer and have similar or identical designs. Because they are very similar, they are much cheaper to build. It means they are cheap to buy. However, they may seem like an advantage, but only in rare circumstances.
By nature, extraterrestrial properties lack scarcity. They are usually put together and tend to go to market at similar times after the construction is done or the rentals expire. Given this, it can be a challenge to take advantage of the amenities and location that the property offers. In addition, it will not be easy to attract tenants due to the high competition from the landlords.
Before making any investment property, make sure you understand the neighborhood. It is especially essential if you are considering buying property in a place with which you are unfamiliar.
Explore the area’s real estate market, such as rental rates, average rent, and home sales details. Find out if there are major development plans in the works, including large office buildings, factories, new apartments or commercial complexes.
New construction can affect the value of the investment, and it’s best to research ahead of time rather than discover a bad surprise before you recoup your investment. The planning office of the council will provide you with details of upcoming projects, and you may want to spend more time researching other sources as well.
Real estate is definitely a key component for any investor who wants a diversified portfolio. However, you should keep in mind that not all investment properties are good. While some are profitable, others are money-making.
To be a successful real estate investor, be sure to remember the red flags mentioned above when buying investment properties. This way you will be able to choose the best investment property that will provide you with the best value for investment.
Stay tuned to Feeta Blog to learn more about Pakistan Real estate.
As an investment property owner, you should also know the most common homeowners Insurance Tips when renting or renting property. As these are the most frequently cited reasons for insurance claims by owners, they also relate to the most common causes of damage to wolf property. They give an idea of what dangers pose the most common risk to property investments.
Whether you choose to pay in advance for repairs for damage to your rental property or you pay insurance premiums, you are required to pay expenses anyway. It is best to know more about these dangers and risks so that you can take steps to avoid them. Here are some of the most common causes and reasons for landlord insurance claims. Suggestions on how to minimize or avoid them are also given.
General liability coverage is one of the areas covered by homeowners insurance. General liability is triggered when, for example, a tenant, guest or visitor is damaged or injured on the leased or leased property. The most common events that result in a general compensation claim are slips, trips and falls.
If a person slips due to a pile of ice or snow on your property and breaks a few bones, an owner will most likely reimburse the hospital and medical expenses. General liability can help pay for some of the injured person’s medical expenses and hospital bills.
If you would like to avoid or at least minimize these kinds of incidents and claims, you should take the time to remove any hazards on your property on a regular basis. Examples of hazards include slippery wet surfaces, large tree trunks or branches obstructing paths, or rusting handrails and iron bars protruding into common areas or footpaths.
Loss of rental income is among the main reasons invoked or used in claims by insurance owners. Observers from the insurance industry say there have been years when it has covered more than half of the claims of insurance holders. This happens when you have lost tenants or when you have had difficulty finding new tenants.
You can avoid losing tenants or having unoccupied rental properties by making sure your rentals are always in good condition and safe. You should check your properties from time to time to eliminate or mitigate the risk of possible damage.
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Other common causes of loss are economic recessions and financial crises. Unemployment is inevitable during these times, and this can lead to people losing their homes or relocating to cheaper alternatives.
Another common ground for claiming rental insurance is coverage for water damage.
Plumbing is mostly hidden under concrete. Most of what you see are joints under sinks and toilets. When there is a faulty plumbing in your property, it can continue to leak under the concrete and you wouldn’t even notice it. You will only begin to notice it as small mounds or cracks on the concrete slabs. Even when the tap is closed in the bathroom, drops of water may seem to escape between tiles. This can eventually lead to mold or further damage.
Have a plumber inspect your property’s water pipes periodically to avoid water problems. You must also include terms and conditions of the tenant’s liability if the water damage is due to his negligence or negligence.
Many of the southern and solar states are vulnerable to hurricanes and storms. Some states, such as Louisiana and Texas, have experienced severe flooding in recent years. Florida has always been hit by hurricanes and storms. Even Ohio and Kentucky were hit by devastating tornadoes.
These natural disasters and disasters can cause severe damage to properties. While some extreme weather disruptions and strong hurricanes can cause unavoidable damage, there are ways you can minimize them.
You can check your gutters, downspout and gutters before a big hurricane to make sure they are all good and untidy. This can help the free flow of rainwater on your roof and minimize the damage to it. The average cost to install a new roof will cost you another $ 18,800. Taking these steps can save you a lot of money.
In addition to the common causes of damage invoked in landlord insurance claims, another type of claim is for fire damage.
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There are things inside a home that can ignite a fire and even destroy your rental property to the ground. Some of these are electrical malfunctions and malfunctions of home appliances. Candles left burning near combustible or highly flammable materials can also burn your property. Everything owned by the owner within a property will be covered by owner insurance, but not the personal property of tenants. The building itself should be covered by construction insurance separately.
As a wolf owner, know and understand the most common hazards and risks to your property. If you can minimize or avoid the risk of damage to your property, this will also reduce the out-of-pocket expenses you have to pay for the repairs. If you already require insurance coverage, this would tend to raise your premiums during renewal because you now have a high-risk profile.
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There are many reasons why people invest in real estate. While some are doing it to diversify their investment portfolio, others are taking this direction to earn tax rebates. But in general, more and more people are diving into property investment because they want to make a profit from their capital.
If you want to maximize your investment property, you need to put in the time and effort to increase its value over time. Your property should be worth more than you bought it to make a profit. The higher the value you can add to your property investment, the more money you can earn from it once you decide to resell it or turn it into a rental property.
Here are six stupid ways to add value to your property investment:
Your property will be more valuable in the market if it offers unique features. This is especially true if these features make the property more unique and interesting.
One of the best ways to add value to your property investment is to add architectural details that are both attractive and functional. For example, you can invest in stamped concrete in your driveway or concrete retaining walls. These concrete projects can be customized using different spots and designs, allowing your property to stand out from the neighborhood.
The general public will already have expectations about what to expect in residential or commercial property. You can impress them and increase the value of your property while adding additional features.
For example, you can invest in Altitude Mechanical Home Heating services or hire contractors to install a brand new HVAC system (heating, ventilation, air conditioning) on your property. These updates will certainly bring convenience to buyers and tenants of real estate and significantly improve their daily life.
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Undoubtedly, the bathroom is one of the most important areas of any property. This is where residents will start and end their days, and how it looks can make or break their mood throughout the day.
Remodeling your bathroom is a great way to increase the value of your property. With the various upgrades, you can make to your bathroom, you can easily choose one (or two) that suits your budget. For example, if you have a cheap budget, you can paint the bathrooms a different color to breathe new life into the space. If you are ready and willing to spend more, you can install new plumbing fixtures or invest in energy-efficient appliances.
Gone are the days when kitchens were only used for cooking and preparing meals. Today kitchens are considered the heart of the home because here people share meals with friends and family and hold meetings.
If you want to add more value to your property investment, upgrade your kitchen immediately. Tons of kitchen renovations add value to any property. You can replace top cabinets with an open shelf, repaint the kitchen island, or upgrade to stainless steel appliances. You can also enhance it by adding a backsplash and investing in durable and visibly appealing materials on the tablet.
The exterior of your property is very visible, and how it looks can create an impression. It will be challenging for you to attract buyers and tenants if your property looks untidy and disorganized from the outside.
To increase the value of your property investment and impress as many people as possible, improve your curving appeal. This usually means tidying up your garden, clearing sidewalks and sidewalks, and making sure your front door looks aesthetically pleasing. You can also invest in landscape lighting to show off your outdoors, even at night.
Increasing the value of your property investment is easy — you just need to put yourself in the shoes of buyers or tenants and think about what you want your property to have. In addition to making sure that the property you live in is attractive and functional, you will probably want it to offer security.
Your property investment will certainly gain more value if it offers multiple security features. When you add door and window sensors, motion sensors and wireless security cameras, more people will be interested in buying or living on your property. When there is a high demand for your property, its value will immediately increase. This is especially true if very few properties in the area have these security features.
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With the number of things you can do to add value to your property investment, it is best to consider your target audience to narrow down your options. Making changes in your property investment based on their needs and desires will ensure that you can find buyers or tenants quickly. In turn, this will allow you to earn more profits quickly.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Renting real estate can be very lucrative, and it is the kind of passive income that can give you a massive return on investment. And for those who want to invest, turn to mortgage lenders to secure the property. But those who are new to this type of business may want to weigh their choices first on financing and where to get it. Is it better with banks or private lenders? Here are the pros and cons of these lenders.
Waiting for loan approval can take time depending on the type of lender, but a private mortgage can free up cash loans faster than banks. The latter requires documents and various processes that are tedious and time-consuming. Some application processes take so much time due to the amount of the loan and the paperwork. The application can be approved in just a few hours if you speak with a Certified Mortgage Broker – private mortgage as soon as possible if you have a timeline to save.
Private mortgage lenders also apply to family members or relatives to whom you can turn for money. Specific immediate family members may have the financial capacity to assist you. If they trust you enough, you can get a lower interest rate in private institutions. But keep in mind that IRS rules still apply when rates are kept lower. It has to comply with the Applied Federal Tariff (AFR), or you can pay more taxes. Anyone with a large amount of cash can choose to lend their money and earn more by lending it privately to someone they trust.
Private mortgages have shorter payment periods, but those who change properties will not be bothered by the limited time. They also may not qualify for traditional lenders because homes that need major renovations are rejected by lenders even if you have a good credit report.
The reason for this is that it may take more money to fix. Vacant homes are likely to have broken windows, vandalized walls and plumbing that need major work. A private lender may want to take a chance on financing repairs that you can sell or rent.
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If you are planning to take out a private mortgage loan, you need to plan how you can repay it. Traditional lenders have longer payment periods. Meanwhile, private lenders can give you time to repay what you owe for up to three years. Standard payment terms of banks and other institutions have plans for 15 years and 30 years.
That’s why when you decide on a private mortgage, you need to find out how much interest you will have to pay each month. Since you only get a few years to repay the loan, the amount will definitely be more outstanding along with interest. Make sure you can work within your budget. You also choose to get a mortgage-locked rate that will help prevent the rates from rising.
When you expect larger payments and a shorter payment period, you might want to weigh it against the possibility of extended vacancies. The property may remain vacant for a long time. If you have no other income, you will pay its mortgage, insurance, taxes, and maintenance expenses.
Make a calculation and assume that the property will be vacant for a month. Find out if the ROI is acceptable to you if the property will not make money for a while. Make adjustments to calculations if the property remains vacant for more than a month. You would save yourself some trouble the sooner you find out if the loan is worth it or not.
Whether you are buying a home for personal or investment purposes, the private mortgage lender often requires high credit scores. High credit scores prove your ability to repay what you owe. Private lenders need you to have a good record with a score between 500 and higher.
Also, consider the fact that lenders have raised the minimum credit scores due to the economic pressure caused by the pandemic. If you need information, you can look at a number of mortgage lenders and compare interest rates and quotes to determine how much you can repay if you continue with the loan.
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Funding coming from private mortgage lenders has both advantages and disadvantages. You may find that you can get faster approvals, even for those who need major renovations. But you will also be dealing with short payment periods and the possibility that you will not make money as soon as you want. Before applying for a loan, it is best to do your research first.
For more information on the real estate sector of the country, keep reading Feeta Blog.
Being a landlord is not just about collecting rent and avoiding damage to your property. Sure, these things are important – but with the right approach, you can build lasting relationships with tenants who trust and like you.
Why worry if tenants like you? Well, you entrust them with the day-to-day care of your property, and they have a lot of opportunities to damage it in creative ways, so you want to stay on their good side. More than that, you want them to be good tenants – pay their rent on time and take good care of the property. To get good tenants, you have to be a good landlord. Here’s how.
Most tenants will not call the landlord for anything unless they feel there is no other way to deal with the situation, so you should take any complaint or concern seriously. You can’t always do anything to address your tenants ’concerns – for example, you can’t ask people in the unit above your tenants to stop walking at 3:00 am unless they’re also your tenants. You can’t get the old lady who owns the house next to your rental unit to take off her ugly lawn moths. But you can mediate disputes between your own tenants, deal with concerns about the property itself, or make exceptions for tenants in unusual circumstances.
In many states, you have to give 24 to 48 hours notice before you can enter your tenant’s home outside an emergency situation. Even if you live in a state without such notice period, or your tenants agree to waive it, you should still respect tenants’ privacy. Just because you can to pass unannounced does not mean you should fall unannounced.
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Tenants want privacy in their homes, so try to give prudent notice before entering the unit unless there is an emergency. You do not need to access the property while the tenant lives there unless repairs are required or if you suspect that the tenant has caused damage. You can evict a good tenant from a nice property by being too name.
Things are happening. If you have tenants long enough, you will have some who will lose their jobs, or experience death in the family, or have a relative who needs someplace to stay for a few weeks. If they need a few extra days to pay rent or need to let someone stay with them a little longer than the rental technically allows, try to be understanding, especially if they were a good tenant otherwise. They will remind you that you are a little relaxed when you want them to renew their rent or pay a little more rent each month.
Tenants only want to live in a well-kept home, and they are allowed to do so. Do not try to avoid repairs. Tenants are much more likely to give up rent if they can trust you to perform maintenance and repairs on time. After all, no one wants to live with a broken heater or leaking pipe for weeks.
If your tenant needs an emergency repair, do it right away. In the case of non-emergency repair or routine maintenance, notify the tenant that you intend to inspect the damage, or simply go ahead and set up an appointment with a contractor. Your property will do better if repairs are also done on time. Once you have several properties, you can use HOA and property management accounting software to manage care requests when they come.
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Check your state’s landlord-tenant laws to ensure that you perform your duties and respect the rights of your tenant. Your state’s landlord-tenant law governs such matters as the use of security deposits, when and how often you can access the property, when and how to evict a tenant, and what you can do with abandoned property in the unit. Laws may change, so try to stay current.
If you want to attract great tenants who will stay on your property for years, take care of it as if it were their own, and always pay their rent on time, you have to be the best landlord you can be. If you are cheerful, fix things right away, and are willing to relax a little good tenants when they need it, you may find yourself developing a relationship with your tenants that goes beyond business and into friendship.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
It is common for aspiring investors to overlook the opportunities offered by investing in real estate, especially when it comes to vacant lots. For many, it is typical to value vacant land at face value ignoring the benefits it could offer. These benefits include formulated cash flow, income returns, tax benefits, and investment diversification opportunities. If done strategically, investing in real estate can be a great way to build wealth.
In addition, vacant land is a tangible asset that offers owners more investment security at relatively lower costs compared to developed land. Due to its affordability, buying vacant land gives the investor an opportunity to enter the real estate market using limited capital. Some investors maximize their investment by developing vacant land on their own, while others appreciate the value of the land as it is and sell it at a lucrative price later.
Another reason why investors miss the opportunity to invest in vacant lots is due to a lack of information. Many feel hesitant because they are worried that they do not have enough knowledge or skills when it comes to real estate. Fortunately, there are many professionals like real estate brokers, surveyors, and property managers who can guide first-time owners in selecting, acquiring and managing property.
If you are thinking of making a profitable investment by buying vacant land, here are a few things to consider to get started.
Setting goals before making any important decisions or investments is essential. In addition to knowing where to invest, it can also give you an idea of how you can maximize your investment. Your goals could also help you determine if you are choosing the right property to best complement your investment portfolio. For example, if your goal is to invest some of your money in more passive investments, then buying vacant land is an ideal choice for you.
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Having clear investment goals will also help you put things in perspective and make a long-term plan on how you will acquire, develop and manage the property in the long run. This way you can know if buying a particular property will keep you aligned with your investment goals and make adjustments where necessary. This is also a great way to protect and maximize the money you have invested so that your time and resources are not wasted.
Doing research is key to being well-informed about your investment. Here are some common factors to consider when looking for vacant land that would make a profitable investment:
In addition to the geographical location of the earth, you will also need to consider the neighborhood in which it is located and the environment surrounding it. For example, your goal is to find a piece of land that would be suitable as a residential area. Then, it may be ideal to have it in a safe and secure neighborhood.
In addition to this, it can also be useful to know if the area is prone to accidents and natural disasters such as flooding, landslides, proximity to fault lines, and so on. This factor could affect the cost of the property due to the care it may require, and there may also be limitations when it comes to developing it.
Knowing the ideal size of the vacant lot you would like to buy could also help you narrow down your search. Considering your goal for the investment, you can identify how much space would be needed and how you can maximize it. Its size can also help you determine how much maintenance it would require.
This is another key factor in seeking free land. When it comes to determining its accessibility, it would depend on how you intend to use the property. For example, if you want to build rental apartments in vacant space, then it should be close to shopping malls and establishments where it would be ideal for employees to reside.
In addition to the actual cost of the property, you will also need to consider the property taxes, government certificates, maintenance, utilities, insurance fees, and other expenses you may need to cover as an owner. This way you can estimate how much you are willing to invest and whether the profit is worth the overall price.
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Once you’ve made a short list of the properties you’d like to invest in, it’s essential to be able to explore each location so that you have a clear idea of what each one will look like and whether the descriptions are accurate. At this stage, you can also ask friends or advisors for their input to help you decide before acquiring the property.
Investing in vacant land could be both a profitable and fulfilling experience for all kinds of investors as long as you can choose one that best suits your preferences and investment profile. As with all other investments, however, it is important to know the potential risks and difficulties of acquiring property so that you can prepare for them when they occur. It is important to be informed and up to date so that you can protect and maximize your investment.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Pakistan Real Estate.
Owning a vacation rental is a great investment decision. However, like other big decisions, there will be downsides, especially if you don’t plan well. You just have to be more discriminating with the help you render toward other people. Making up a list of pros and cons helps you make a good decision. Investments should not be driven by peer pressure but rather by facts. You need to be sure that there is a higher chance of winning than losing when you put your money into something.
Here are some advantages and disadvantages of owning a vacation rental that you should be aware of:
One of the significant benefits of owning a vacation rental is additional income. Extra income is a big plus, especially if you want to achieve financial success. Also, you will have something to fall for if you lose your main job. On the same note, if you want a break from daily work, owning a vacation rental property could be your first step towards achieving this long-term goal. However, be careful when setting your nightly rates, do not overload or underload. Look at the popular rental listings for an idea of prices in your area.
When you buy a property, the hope is that the value will increase and you will appreciate it, which will help you a lot when it comes time to sell. Every year the value should increase, especially if you are buying in a high demand area. Before deciding on the best vacation rental to buy, check out the past and current market trends to understand what the future holds in terms of property value.
Holiday rental property is a business just like any other. If you pay taxes based on the income you make from the property, then you can also deduct all business expenses you incurred. Deductions can be payments made to property management companies, repossession, or even management. However, don’t forget to keep the receipts, or you could get into hot water if ever revised.
Applying for a business credit card to pay for business expenses makes it easier for you to provide records when you file your taxes. You can also deduct your insurance, property taxes and mortgage interest. A tax professional can do a better job of helping you advance this. Use an auditor if you are unsure how to proceed because tax fraud is a serious matter, even if it was done incorrectly.
Getting away from your daily life is sometimes a great thing. It allows you to disconnect and restore so that when you return you can be more productive. However, one of the reasons why most people do not vacation is the high housing costs. With your vacation rental, you never have to worry about that. Go during the off-season so you don’t miss out on rental income during the peak season.
You can also let your friends and family stay there for a holiday for free, half price or full price. It’s all up to you.
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Managing holiday rental property is not easy, especially for first-timers. However, there are management services available that you can take advantage of to make your job easier. You can focus on more important things like marketing the property or even scouting for the next investment property allowing a property management company to do all the time-consuming duties.
In addition, it removes the pressure from the equation, especially for first-time vacation rental owners. You can even buy property overseas and make sure the administration is safe because local professionals will take care of your property. You will not have to travel back and forth all the time to check the rental property.
There are several websites where you can list vacation rentals to find guests easily. You don’t even have to market it. After the first guest leaves a positive review, you’ll see people piling up the property, and your job will be easier. You have to work hard to get that first review, and the rest is easy. You can also select the dates you want to rent the property and block dates for you, family or friends to visit the home. If you’re worried about not finding guests, it’s time you dumped that thought. While the property is up to standard and in a popular place, you can be sure that they will come.
There’s so much you can do in real estate besides buying a holiday rental property. However, you will learn to practice faster than read about other people’s experiences. The best part is that you learn by enjoying the benefits of being a vacation rental owner. You can then expand your business and earn more when you have learned the ropes.
Unexpected expenses are not a surprise in a holiday rental, as well as at the main residence. Whatever doesn’t work or needs a replacement is your responsibility. Expenses such as utilities, regular maintenance taxes and resupply can be expected. However, huge expenses like burst pipes or a broken air conditioner have considerable costs to replace or repair, and they may catch you off guard. You need to set aside a certain amount each year to provide unexpected maintenance and repairs. You can rate it at 1% of the total purchase price of the property.
Primary housing may require only a 3-5% down payment. However, this will not be the case when you are buying a holiday rental property. While you may not plan to live there, lenders will charge a 20-30% down payment, which can be difficult to cough up. On the same note, the requirements for your credit score will be much higher as you take on more debt.
Some taxes you may have to pay include property taxes, local and state taxes. Depending on the tax laws in your area, you may require a business license as well as a hotel and sales tax.
In terms of fees, you’ll need to pay a backup fee for the websites you use to market your home. Looking back at what you spent on taxes and fees for the holiday rental, you may be shocked at how high the figure is. Most likely, the biggest fee you pay is property management. For short term rentals, this can be anywhere between 15% and 30% of the gross rent. So, you have to control these expenses and ask yourself if you are making losses or gaining anything by renting the property. If you do not control your expenses, you may notice that you are taking care of the property at a loss.
Owning a vacation rental property is not as easy as posting it online and cashing the checks. You need to perform regular care and repairs and respond to the needs of the guests.
When the vacation rental property is not in the same area as your main residence, it will be a great hassle to manage it if you are not hiring property management services. It takes a lot of time and money to travel back and forth to run a business. On the same note, you’ll have to deal with marketing if you don’t have someone to help you. Responding to reviews and questions in a timely manner is essential to staying relevant, not forgetting to update the availability calendar and nightly rate.
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It is made easier with reliable property management services. However, after you get several vacation rental properties, it is highly recommended that you get property management services for a better result unless this becomes your main job.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
The residents of the Twin Cities are looking forward to the development of the Silver City Housing Project. It is now a unique investment opportunity for all those looking to benefit from their investment in an approved housing project. It is a safe investment due to its legal status and environmental status.
It is ideally located on Girja Road, which serves as a link between the housing society and the rest of the city. It is only 19 minutes away from Srinagar Highway and it is very accessible from Islamabad International Airport as it is only a 15-minute drive away.
It is also at a convenient distance from GT Road and M-2 Highway. It is because of its location that it is anticipated in the business community of the Twin Cities.
There are many landmarks near this housing society and this makes it a unique place to invest. The main landmarks are:
It is very accessible from all the main points in Islamabad. As it is only 19 minutes away from one of Islamabad’s major highways, the Srinagar Highway, it gives access to every major part of the city.
People can easily get to this apartment using local transportation or their vehicles because it is in close proximity. Accessibility is one of the main highlights of Silver City Rawalpindi.
Silver City is not the housing company in the area and there are other housing projects as well that compete with it. The most important housing projects that are under development are:
These major housing projects make Silver City a unique proposition because people are mostly driven by nearby landmarks. As it is surrounded by huge housing projects, it creates a sense of confidence in the investors that their money is safe.
Laraib Associate & Developers (PVT) Ltd. and SAREMCO Group is responsible for the development of Silver City Rawalpindi. They have previously been involved in real estate and have delivered 100% results to their consumers. It is one of the reasons that this housing project will also be successful, as these developers are working on their projects quite extensively.
The work is in progress in this place and the investors can physically visit the place for their assurance. Its evolutionary progress shows the interest of the developers in its real estate development. This project will be up and running soon, as development progress is on par with Blue World City and Capital Smart City.
Rawalpindi Development Authority (RDA) has legally cleared this land. It adds to the value of the property because people will have confidence when investing in this project. Investors should not worry about the legality of this project because RDA has issued a NOC for this project.
Silver City Rawalpindi has a long list of modern amenities and facilities that make it a complete package for everyone who is looking forward to investing in this project. The list of these facilities is:
Silver City is a 21st century wonder and they are modernizing the living standards in Pakistan. This housing project consists of all the modern amenities and facilities that are the requirement of this day and age. People are given several options to choose from because there are different plot sizes available in 3 different blocks.
Follow the official Silver City map:
The following are the residential plot sizes available in Silver City Islamabad:
Here are the commercial plot sizes available in Silver City:
The prices of this housing project are one of the most affordable in the region. Even after the approval of the GDR, the prices are well affordable by the middle class. Prices start at 20 lakhs and the reserve starts at 2.80 lakhs. There are 42 installments and a total of 4 years. This housing project aimed to provide value for money to all its investors and a reasonable profit in the end.
It’s very easy to book a plot inside Silver City Rawalpindi. Some requirements must be met for application. Here are the requirements for booking land in Silver City Rawalpindi:
Silver City Rawalpindi is a huge opportunity for anyone who wants to invest in a reasonable range. It is reasonably priced to target the middle class who are looking forward to owning property. It has become difficult to own property in this economy and if there is an opportunity like Silver City Rawalpindi, one should take advantage of it. It will provide huge returns in the future as the price goes up.
RDA has given a green signal for its development, which is already in progress. This legal support from the relevant authorities should strengthen the confidence of investors. Silver City Rawalpindi is among the most advanced housing projects and it is priced according to the lowest spectrum to facilitate investors.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
The appearance and functionality of your rental property have a direct correlation to the rental income it can produce. By investing in the right improvements, you can charge your tenants more. This can result in higher rental income in the long run.
However, there is a fine line between improvements that allow you to increase rental income and those that are unnecessary or superfluous. You need to determine who is who so that you don’t end up paying for expensive renovations that do nothing to your rental property.
Here are five simple but effective improvements that can increase your property value and, eventually, enable you to earn more rental income:
The exterior of your property is very visible, and how it looks can create an impression. You find it difficult to attract tenants and encourage them to live on your property if your exterior looks poorly maintained.
One of the easiest ways to enhance the value of your rental property is to take care of your exterior. As a landlord, you should put in the time and effort to make sure your exterior is in pristine condition. You can achieve this goal by:
Hire professionals to take advantage of their press wash services to remove dirt, dust and other debris from your exterior. Pressure washing also removes mold, keeping your rental farm cleaner and healthier.
The front door attracts the attention of tenants and sets their expectations on what they can see inside the property. Increase their excitement by painting your front door in bold color. If your exterior is painted in nude shades, go for light shades of red, blue, yellow or orange for your door.
Check the general condition of your landscape and remove weeds and dead branches. If your outdoor space allows, you can plant more flowers and invest in a water feature, such as a pond or fountain.
How the bathroom looks and works can significantly affect a person’s mood throughout the day. Can you start the day in a positive mood if the bathroom looks dirty? How can you enjoy your bath or shower if the bathroom lacks essential amenities? Tenants will probably feel the same way, so make sure to upgrade your bathroom.
You don’t need to break the bank just to improve your bathroom. Here are some cheap bathroom renovation ideas that will definitely make the space look and feel new:
Many tenants will choose to pay more, provided they get the most functional and attractive kitchen. In addition to cooking and preparing meals, tenants were more enthusiastic about the kitchen, as here they would entertain guests and even hold parties.
Contrary to popular belief, you don’t need to spend thousands for a successful kitchen renovation. Like the bathroom, there are inexpensive kitchen improvements that can change the overall look of the space, such as:
The more housing your rent has, the higher the rent you can pay your tenants. This will allow you to earn more income in a shorter period of time.
Evaluate the layout of your property and see if it can still support another place to live. For example, if your wolf property has a separate dining room, consider converting it into another bedroom, or if it’s a large room, split it into two bedrooms.
Gone were the days when tenants only entertained guests inside the home. Today, more and more people would choose to hold meetings in outdoor spaces as these offer a change of scenery and a fresher atmosphere.
Another way to increase the value of your rental property is to offer an outdoor recreation space to your tenants. Depending on the space available, you can add a deck, beauty or some outdoor furniture and BBQ. All of these updates are sure to attract tenants and make your rental property more valuable.
The housing market worldwide is full of thousands of wolf holdings. Fortunately, there are many ways for yours to stand out, namely by following the tips presented in this article. These tips are enough to make sure your rental property meets modern standards and attracts as many tenants as possible.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Here we discuss key considerations before Buying property, whether it’s a house, a building, or a piece of land, can be quite stressful if you don’t access it in the right way. There are many cases of people investing a lot of money in such property, only to realize soon after that they have made the wrong choice. Also, others lose their hard-earned earned by dealing with shady characters.
For these reasons, you need to do some personal research on what is required of you before you buy any property. According to this account, you will find this article useful because it highlights five key factors to consider before buying your next property.
When you buy land to build on, you should expect to spend on additional things, such as insurance, related taxes, survey costs, and so on. These can give you back a large amount of money, especially if you don’t plan and budget carefully for them. Therefore, you should make an accurate calculation of the total expenses and then come up with a solid financial plan to allocate the funds effectively.
Don’t forget to take into account the costs of building your home on the newly purchased property. If you are wondering how to do the process, you can use reliable online cost calculators, such as Boutique Home Plans and other reputable websites. These calculators are designed to perform calculations for the costs you will have while building your home. All you have to do is feed it with basic information like the size of the house you plan to build, and it will use this information to accurately calculate the expected costs.
Before you get possession of land to build, you need to go through all the required legal channels and get the necessary documents. These include:
Additionally, you will require building permits for all the structures you intend to erect. These permits have an underlying framework of standards set by the government that ensures you build robust structures.
Therefore, be prepared for a lot of paperwork. However, this should not prevent you from the buying process because, in the long run, the documents ensure that you are making a legal investment. You can contact a reputable real estate broker to guide you through the documentation process.
Before you buy that piece of land, consider its location. Research on factors such as:
Zoning laws are statutes that classify an area as either commercial or residential. For your home, you will need a plot of land in a residential area. You can browse zoning records for your plot of land, which you can find online or from the zoning office of the area in which you want to build.
Moreover, research on the long-term land use plans of the area, especially future road construction. This is important because you can build a house on the ground and after a while, the government builds a busy highway right next to your house. Therefore, save yourself all these inconveniences by going through the zoning guidelines.
The size of the land will influence the scope of your projects and the plans you may have for future land development. If you want to build a mansion, you will go for a larger size of land than if you want to build a bungalow. If you plan to breed a horse or two, the land size will also determine if you can have outbuildings, such as a barn. And if a pool is on your wish list, you should consider enough land space for the project.
Buying a property to build a farmhouse is one of the most important investments you can make. As the owner, you will be in charge of your belongings and this will give you a sense of liberation. To be successful in your purchase, you need to consider a number of factors, such as the cost of a building, legal considerations, zoning restrictions, land size, and location. Putting all of this into perspective ensures that your newly acquired property meets the needs you’ve been dreaming of for a long time.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Investing in real estate has its share of ups and downs, and there will come a time when you will have to give up one of your investment properties. When you plan to sell your property soon, it can be profitable under favorable market conditions.
Once you decide to sell an investment property, expect a few challenges along the way. Make it a priority to come up with a plan to save you the hassle and costs. If you want to sell your investment property, here are some tips to consider:
Before selling your investment property, you need to know everything about the current trends in the local market. Once there is a good, upward trend in the market movement, it is important to make a move.
You need to note the occupancy rates, employment situation and the general condition of the light market. In general, potential investors consider property in an area with low unemployment rates, high employment rates and favorable rental conditions with more value.
When you consider putting your property on the list soon, getting a property valuation by Local Agent Finder or from other reliable suppliers would be a good starting point to know the value of your property.
If you want to sell your investment property successfully, make sure to stage it well to maximize its appeal. It is best to consider hiring the services of a professional stage manager to make it happen. Remember that staged property can make a significant difference in the overall appeal and value of your property.
Some of the benefits of staging it will help you sell faster, highlight the key features, give the impression that your home has a higher value, and impersonate it to make the property more attractive to potential buyers.
A considerable move during the sales process is to reduce the monthly operating costs. It is an effective way to make the property attractive to potential buyers.
There are various ways to reduce the operating costs of your property, such as upgrading the oven, air conditioner or other important appliances. Although you will be working on a few extra costs, the savings over time will make a good impression on potential buyers.
One way to increase your chances of selling your investment property is to decide on the right price. Make sure you are in the mid-range between expensive and low value. Remember that both extremes will hinder your chances of selling your property.
If you want a reliable basis on the price, you could consider a comparative market analysis. Without one, you will have no foundation to set the price for your investment property. The main purpose of the analysis is to determine the recent selling prices for other similar properties in the same neighborhood.
Make it a priority to showcase your property in the best way possible with quality photos. If you lack photography skills, hiring a real estate professional is worth considering if you want eye-catching photos to include in your list.
Providing attractive photos of the property on the list will attract potential buyers to visit, especially if they see the main selling points. Additionally, providing featured images of your property can increase the likelihood of selling faster and with higher value.
Before putting your investment property on the list, you need to be prepared with relevant documentation. Prepare those that cover the overall financial health of the unit. In general, you need to include the budget and expenses and income data.
Don’t forget to provide all the necessary documentation when it comes to the history of repairs and maintenance. Ensure that it includes a comprehensive overview of capital expenditures.
Always remember that by providing complete documentation, you are transparent about your property. It can help establish trust and help potential buyers make the final decision.
If you work with an agent, you should hire one who specializes in investment properties. Hiring one without experience could lack the skills to market and successfully sell it. During the selection process, you need to make sure that potential candidates have the right sets and experience in the industry.
The seller’s investment property can ensure good profit. If you want to make a successful sale, be sure to consider these valuable tips to significantly enhance your chances of attracting potential buyers and getting a good deal in no time.
For more information on the real estate sector of the country, keep reading Feeta Blog.
If you are looking to invest in real estate but have found that traditional methods of acquiring property are too expensive or inaccessible, hard cash loans might be the answer. These loans provide quick cash for people who need it, and they do not require a lot of paperwork or credit checks.
In addition, the terms of the loan allow borrowers to defer payments if necessary. There is no limit to how many properties can be purchased with these types of loans as long as they are commercial buildings, multi-family homes or completed residential construction projects. Here is a guide on how to best use hard loans for your real estate investment.
Before you start looking for a hard money lender, you should be well informed about the current market. You will only find the best deals if you keep your ear to the ground and do not take any valuable information. Looking around for buyers who might require financing is one way to do that.
These people are often willing to pay higher prices for the properties they want if they are given a chance to avoid paying cash. You can also contact commercial real estate and ask them about upcoming deals that could be suitable investments with hard loans.
There are other ways you can explore also. For example, some people like to find properties that need work and fix them before selling them for a profit. Because you are investing your time and energy in the renovations, you will want to find a lender who can work with you to defer payments until your investment begins to pay off.
Formal lenders such as banks and credit societies usually require strict qualifications before approving applications for loans. With hard money lenders, it’s a different story.
You will need to make sure that you find a lender who can work with you and your specific situation, but it should not be difficult if you have the right information.
For example, some lenders have minimum requirements for down payments or credit scores that they require their borrowers to meet before approving an application. With a little research, you can find lenders who are willing to work with your financial status.
There are reliable online websites that you can target and get all the information you need from the available lenders. They expose you to a Directory of hard money lenders and individual reviews. It helps you decide on which direction to go when choosing a lender. The lower the rate, the better your chances of profiting from your investment within a short period of time.
As an investor, it is essential to be accountable for your financial commitments. Your lender will expect you to repay the loan before the agreed deadline and not a day later.
If you fail to do so, you may have to face some consequences, which include steep interest rates or even a requirement for immediate payment. As a property investor, it is important to be aware of the repayment terms and always make sure that you meet those conditions for your benefit.
There are many ways that hard cash loans can be used in real estate investing. One of the best choices is to buy properties before they were listed for sale on the market, so you won’t have to compete against other potential buyers when you’re trying to make a deal.
For example, you can use these loans to buy another real estate investor who is not using their property to its full potential so that you can renovate the building and sell it for a higher value. You can also use hard loans to buy finished multi-family homes before putting them on the market so that you have a place to live while you wait for the value of the property to increase.
You need to get all the information you can about the available offers. You may not have much time to invest in your research, but you should never rush through this step for fear of running out of financial choices.
This is one of the most crucial aspects of real estate investing, so don’t miss it just because it takes a little more time and energy to get through.
Getting a loan from a reliable hard money lender is one of the best choices you have when it comes to financing your real estate investments.
You don’t have to hand in an application at your local bank just to find out that you are not eligible to get the type of loans you need. Instead, you can contact a hard money company without any problem working with investors who are not qualified to apply for traditional financing.
Some people think that using hard loans is a great way to avoid paying higher prices on fees from banks and other loan providers. However, this may not always be the case because some hard money lenders pay high interest rates to compensate for the lack of paper involved.
Also, you should be willing to pay closing costs whenever you buy property because such hard money lenders make their profits.
There are many reasons why people choose to use hard loans to buy real estate. If your finances don’t meet the qualifications at your bank, but you still want to invest in property, finding a hard money lender may be the answer.
The key is to research and find the best offer that meets your needs. By making small adjustments to how you use these loans, you can make them an effective tool to expand your real estate portfolio.
If you need money for your real estate but do not qualify at the bank or other lending providers, hard cash loans may be your best choice.
Hard money lenders are also better than banks when it comes to rates and repayment. As you research which lender is suitable for what property investment, there should be no problems with this form of financing.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
The sale of virtual lands is taking place every day in Decentraland, but a recent purchase by property investors has taken virtual land investment to a whole new level. According to Yahoo Finance, 259 plots or 16 acres of digital land purchased from Republic Realm cost more than $ 900,000, the most expensive purchase of NFT land ever. NFTs, also known as non-fungible tokens, have been a hot financial investment topic in the art industry. However, in recent months NFTs have become increasingly popular in the real estate investment sector. The ability to buy and sell property on blockchain-based platforms such as Cryptovoxels and Decentraland indicates that blockchain is reforming the real estate market. If you’re looking to invest in this trend of blockchain-based real estate, read on to learn how NFTs could transform a property investment.
Strangely, many investors invest large sums of money in virtual real estate. As the name suggests, virtual properties are untouchable plots of land or plots of land that exist only in a blockchain. It is worth noting that the price of virtual land or fields depends on how much one is willing to spend. For example, Mars House, a digital property sold for $ 500,000 on an NFT marketplace.
A few months later, investors completed virtual land sales worth $ 3.5 million in The Sandbox, a metaverse on the blockchain. If you’re like a lot of people, you may be wondering why to invest in an NFT farm. For many investors, the uniqueness and ease of property transfer from the seller to the buyer provide added value to their investment.
In addition to making virtual real estate a reality, NFTs could change the mortgage industry by improving the home loan process. The current regime of getting mortgages is expensive and labor intensive unless you are lucky enough to find a mortgage lender committed to providing excellent customer service. According to The Home Loan Expert, a customer-centric mortgage loan process should be streamlined from start to finish. This means that the lender has the entire home loan process under one roof. This way they can close your home loan quickly and efficiently.
Because the real estate sector encompasses NFT, lending on home loans could be less stressful. This is because tokenizing property rights facilitates the process of managing and trading homes. Ideally, you can buy a property from NFT and lend against it immediately at a 2.4% interest rate through products like Defi and TradeFi.
As an investor, you can use NFTs to tokenize your physical property to create a representation of ownership in the digital space. Doing so allows you to sell part of your property to a small or large group of investors. Because NFTs are sold in a decentralized marketplace, you need to issue tokens to real estate buyers. If investors choose to hold the notes, they may receive rental income or profits shared based on a valuable appreciation of a property sale. Ideally, NFTs could pave the way for many investors to consider fractional ownership in the real estate market.
NFTs or non-fungible tokens have become popular in the real estate industry because they allow investors to buy or sell digital properties. This new blockchain-based technology trend will affect the real estate investment scenario by promoting the rise of virtual real estate. Industry experts also claim that it will encourage fractional ownership, and make mortgage lending easier.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
The real estate market is changing rapidly, and as an investor, you need to be aware of these adjustments in order to make smart decisions.
Refinancing investment properties is a standard choice for capitalists to earn more from their rental and commercial properties. If you want to find out more about refinancing, read on, as you’ll find out what it is, how it works, and how to apply for one.
Refinancing on real estate refers to the act of repaying your existing home loan by taking out a new mortgage. Real estate and homeowners engage in refinancing primarily to save on their monthly payments, adjust their loan terms or borrow against their property value. Ideally, the new property refinancing terms should be better than the current loan — although there are other factors to consider.
In property refinancing, the most common considerations borrowers take are reduced interest rates and loan periods. Browse through the websites of loan companies like Homestar Finance to find out more about refinancing terms and conditions.
In general, different loan products can be tailored to various needs of borrowers. Some lending institutions can be quite flexible and allow borrowers to negotiate their mortgage terms and interests.
Below are the most common types of refinancing real estate that investors can avail:
Rate-term refinancing is the most common type of refinancing that works by replacing your previous loan with a new one with better terms. Its name refers to the two main components of the loan it wants to restructure: interest rate and loan period. With this type, borrowers can enjoy lower interest rates at usually shorter terms.
Refinancing through the deposit method dictates borrowers take out a new mortgage that is larger than the current one. Borrowers can use the extra cash for this refinance type for property maintenance and renovation. In some cases, the extra money can be used to buy another rental.
However, there is a difficulty for refinancing: lenders will likely require borrowers to have paid a large amount in equity, as they are less likely to release more than 80% of the total cost of your property.
With cash refinancing, a borrower will have to take out a new loan that is lower than their existing mortgage. Reduced loan rates mean lower interest rates and a shorter term.
Whichever refinancing method you choose, the goal should always be to decrease your monthly payments and shorten your loan period to provide you with an optimal return on investment (ROI).
An investor who owns a property can enjoy a better cash flow from tenants whose monthly fees are not affected by the refinancing scheme. In some cases, property investors can save expenses by reducing mortgage payments while increasing rents. The extra cash can be used to diversify their investment portfolio or purchase another rental property.
Getting a new mortgage to pay off your existing loan is not much different from applying for a new loan. Before using this loan product, an investor-borrower should be aware of the following standard processes:
Lenders require borrowers to show proof of income and other financial documents such as copies of wages, tax returns, bank statements, property insurance, confirmation of rental income, and lease.
Multiple financial institutions offer different rates and conditions, so it is best to talk to various lenders to get the best deal. Don’t feel compelled to trade only with your current lender, as you could miss the opportunity to find better deals elsewhere.
Once you have chosen the institution with the best value, fill in the registration form and send your documents.
The lender will send you the loan terms upon submission of the application. Review the conditions thoroughly, especially the interest rate and payment scheme. The lender will wait for your response and lock in the interest rate after you have responded favorably to the offer.
Once you have agreed to the new mortgage terms, your application will be reviewed by loan company- which is valid for the documents you sent. After this financial professional finish your application, you can pay the closing costs and other fees to get the refinanced loan for your rental property.
The average process can take from one month to three months, depending on how strict the lending company is. If you apply to refinance with your current lender, however, it may take a shorter period.
When deciding whether to refinance your wolf holdings, keep in mind the current market situation. Ideally, it should be done when interest rates are lower and property prices are high. In this case, you can save on monthly amortization fees while you receive increased income.
Going through investment property refinancing is no different from other forms of refinancing terms. So, take your time to buy competitive rates and lock in your new interest rates after you think you got the best deal out there.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Having extra property that you can rent is probably a great source of passive income. In fact, statistics show that the demand for rental properties continues to grow every year, making it a great opportunity for potential landlords. However, owning a rental property requires commitment, especially when it comes to your time and effort. The hassle of owning a rental property even makes it seem like a second job.
So if you have property of your own and you have the time and effort to strive, you can always choose to manage it yourself, especially when you live nearby. However, if you do not have the luxury of time, then it is best to resort to those who offer property management. (1)
Not only will they have a professional manager, especially those who offer all inclusive property management fees and take a lot of stress and hassle off your shoulders, but they can also ensure that your property looks aesthetically appealing to the point that it will always attract potential tenants, bringing in a lot of income.
Additionally, here are three ways how property management can increase your profit:
If you are a first-time landlord, remember that tenant screening is not only a long process but it is also complicated. Sure, you don’t want to end up with a bad tenant — those who pay their rent late or damage your property.
Fortunately, by partnering with a property manager, you will be assured that the tenants residing in your property will be reliable and controlled, such as long-term rent, timely payment of rent, little or no wear and tear of the property. , and causes less trouble to their neighbors and to yourself, inviting a steady stream of income on your part. (2)
Since a reputable real estate management company has been in the industry for a long time, then they can help you with the background check of any potential tenants. Also, if you hand over the rental process to a property manager, then you can avoid any possible rental scams, helping you avoid losing money in the process.
There are many landlord laws that can be complicated on your part, especially if you know nothing about the specific law. Unfortunately, having little knowledge of the law does not free you from them. Failure to do so can result in large fines.
However, having a property manager — since they are already experts in this field — can help you save your money. For example, if your property manager can save you the trouble of going through one eviction due to the violation of certain laws implemented in your state, then you have already saved money that can be spent on your property to attract more tenants by inviting. more income on your part. (3)
There are many factors that influence why your property is vacant for too long. First, you may have to make the necessary adjustments and renovations when the time comes that a tenant wants to relocate. This can be a timely — and also costly — force on your part because you will have to renovate your place. to suit the needs of any tenant. But a good property manager will prevent these factors. First, your chosen property manager can do the following:
If you have a rental property or you are an aspiring property investor and you want the property to become a source of passive income, then one of the best decisions you can make is to hire a property owner. This is especially true if you don’t have the luxury of time but want to make something out of your property. A good property management company gives you freedom and less stress on your part, which may be the definition of passive income.
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Are you planning your retirement, a new homeowner, or someone considering entering the housing market, there are a lot of mixed signals right now. Hot debates about whether or not we are in a strongly inflated housing market rage and experts and experts on both sides have a lot to say. Below are 3 reasons that some investors don’t think we are in a housing bubble.
According to Freddie Mac, the United States had a housing shortage of around 3.8 million homes in 2020. Despite the growing new housing industry, there is not enough housing for the number of residents in this county, and the shortage continues to grow.
The reason this is indicative of a lack of bladder for many people is that there is no over-supply. More people want homes than there are homes available, which means demand must continue to sustain the market.
Construction costs, labor constraints, and supply chain concerns have made bringing new supplies online difficult. You’ve probably seen the headlines: lumber prices have nearly tripled in the last year.
A rise in the price of lumber has made construction significantly more expensive for new homes. Rising prices and supply chain challenges in everything from steel and copper to windows, doors and appliances — not just wood were difficult to manage. At the same time, labor shortages have left builders with extremely short lists of traders and merchants.
The reason this would show a lack of a bladder again involves a provision explanation. If builders don’t build because raw materials are expensive and labor is scarce, then demand for homes will continue to exceed supply, raising prices and maintaining a strong market.
Typically, first-time homebuyers buy affordable homes when they start building families and then choose to upgrade as their family evolves into more expensive housing. As people get older, they tend to shrink or migrate to improve their quality of life or be closer to their grandchildren.
Current regular fall of homes keeps the housing market balanced. However, many people are only hesitant to engage in this furious housing market, where they will likely have to compete in supply wars and settle for housing that may not fulfill all of their desires. People remaining, combined with a lack of new homes, also add to the housing deficit and supply pressure, which means prices are not artificially inflated but are a legitimate reaction to the current market.
Opinions vary wildly about whether the U.S. (and other markets) are currently in a housing bubble and for what reasons. It always pays to do your own research, so cross-examine all of the above with the other sides of these arguments to make sure you are making wise decisions with your money. Based on the above examples, however, there is reason to believe that we are not currently in a bubble but in a unique and difficult housing market.
For more information on the real estate sector of the country, keep reading Feeta Blog.
Arizona is growing, with a population of 7 million people no doubt due to good weather, low unemployment and a strong economy. This state also has an average sale price of just $ 240,000, so it’s budgeting for the smart investor as well.
If you think about buying investment properties in Arizona, the top markets highlighted below could be ideal.
As you ponder where to buy investment real estate in Arizona, Phoenix will definitely appear on your list. This growing city is home to five million inhabitants, a strong economy and many job opportunities.
As you know, these are factors that often make buying residential or commercial investment properties a smart move. Phoenix also has robust nightlife, sunny weather, and many attractive restaurants and golf courses.
Short-term rental properties are hot due to the city’s growing tourism business, which attracts extras every year for the Phoenix Film Festival, among other events. Rents and sales prices are rising, and real estate experts claim that the average house price could rise by 25% in the next four or five years.
Tempe is a popular city for the purchase of long-term single-family rentals. Arizona State University is based here, and more than a dozen other colleges are nearby.
You can expect to have many students interested in your rental properties in Tempe. This is also worth considering: Some estimate that Tempe’s job market will grow by 50% over the next decade, compared to just 33% across the United States.
Tucson is family-friendly and has a cost of living well below the national average. This historic city also has excellent public schools and is nestled among beautiful scenery; this is another factor that makes it popular for young families.
One of the upcoming real estate markets for savvy investors in Tucson is Corona de Tucson. It is a beautiful area in which to buy a long-term rental property, especially a single-family home. Families like this community because of the low crime rate and nearby schools.
Residents often rent in Corona de Tucson because house prices here are among the highest in the city. Downtown has many popular bars and restaurants, which makes it tempting for business investors as well.
This small bedroom community about nine miles west of Phoenix is popular with families, retired couples and young adults. Your tenants can participate in an NFL game at Cardinals Stadium, and Adobe Mountain Desert Park is just minutes away.
This town is known as the ancient capital of the state. The growing population and labor market attract many properties.
Prescott is not as large as other cities in Arizona, but many locals prefer homeownership to rent. So if you like real estate, you may want to think about a homeowner financing single-family homes to home buyers who don’t have the money or credit for a traditional mortgage.
Prescott also has universities and colleges, so it’s still an attractive place for buying toys as well. This growing city may be a good choice for new real estate investors, as homes remain relatively inexpensive here.
Fifteen miles from Phoenix, Mesa is a center for business and education and ideal for growing families. Rental properties are quickly catching on here, as parks are a short walk away, and a number of world-class golf courses are also nearby.
Mesa is highly valued due to a low median selling price of less than $ 300,000, so it is becoming a hot commodity for Arizona investors.
Arizona is popular for relocation because it has a strong economy and a growing housing market. Warm weather and excellent but affordable restaurants also make it a popular destination for tourists.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Buying rental property is one of the wisest financial decisions you could ever make. Owning a rental property will not only provide you with a consistent cash flow, but it can also serve as the starting point for your financial freedom. As a result, it is important that you find the right property that can produce a good return on investment. If you are planning to buy a rental property, here are some essential tips to help you secure the property that suits your financial goals.
As with any investment, it is important that you are well informed about the inputs and holdings of your own real estate before jumping into this financial venture. Remember that financial gains come with related risks, so you must first research to create a concrete action plan. Do you have a specific area in your head? Are you financially ready to make this business endeavor? Will you manage the rent yourself? Who are your target customers? Make sure your goals match your goals to effectively manage your rental property.
Having debt shouldn’t stop you from investing in real estate, but you should minimize them at all costs. Carefully assess your financial situation so that you can determine if you are in a great position to buy a rental property. If you have a lot of expenses, loans and other financial commitments, then buying a rental may not be a good move for you right now. Remember that your financial responsibilities go beyond securing a down payment for the property. It is also important that you set aside money for unexpected expenses. Make sure you have a margin of safety and that your finances are in order before signing any ownership agreement.
One essential thing you need to decide is whether to hire a manager or manage the rent on your own. Becoming a master is a task that requires hard work, patience and steadfast dedication. You need to be an expert on all the legal duties that come with a landlord. As a homeowner, you also need to educate yourself about the laws of landlord and tenant in your state to avoid legal complications in the future.
The last thing you want is to buy a rental property that will not generate a profit. Location is one of the most essential aspects that you need to consider when buying real estate. The place of your rent will also be influenced by several factors, including its purpose. For example, if the property you are looking at is close to a business district, you can sell it to working professionals. If it is in a university zone, offering it to university students may be your best choice. If you want to better visualize the market trends in a particular area, consider checking the cap rate. This is a valuable indicator of any changes within a specific location that can help you in your decision-making process.
Real estate is a solid asset that can give long-term wealth. Owning a lease can be financially rewarding, but you need to approach this business venture with a strategic mindset to make sure your investment is worth it.
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Buying a house does not matter to anyone. One thinks about price, location, suitability, working distance, family needs – the list goes on. But one important thing in all this is that the house – the physical building itself – has some value, some longevity. That it will not collapse or flood or a myriad of other worst cases.
Unfortunately, in the country’s largest city, these are legitimate questions to worry about. And nothing kills consumer confidence like a few weird accidents here or there. Such is the case of Naya Nazimabad, which was supposed to be a stellar new housing project, who got involved in the terrible monsoon rains that flooded the city in 2020. And it seems that this has affected sales and so on. In the most recent annual report released to the Pakistan Stock Exchange (PSX), Javedan Corporation, the company that owns Naya Nazomabad, recorded its lowest solid income figure since 2013 – when the company first started operating – and its second lowest solid net income.
What happened? To understand, it helps to have context.
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House Flipping, Investing in homes can be an incredibly lucrative business for an entrepreneur who does it right. And here’s the thing: turning a house doesn’t just mean buying real estate.
It is a full-time company that requires further planning, research and a lot of hard work. Here’s what you need to know if you are thinking of investing in a home as an alternative investment strategy.
If you’re one of those people who watched your fair share of HGTV, then you might think you’re fulfilling the challenge of throwing a house. We’re sorry to blow your bubble, but it takes significantly more knowledge and expertise than you assume.
Feeta.pk is a long-term company that has just started throwing houses on the market. Their goal is to turn houses within 90 days.
This creates incredible competition for first-time house fins because Feeta.pk has a team of experts working for them to make everything happen. If you’re hoping to go head-to-head with some of these larger companies, you’ll want to do your research right away.
You need to understand many different aspects of the process, including but not limited to trendy market housing, such as choosing the right property and understanding tax and zoning laws, to name just a few.
One of the biggest mistakes people make when they are new at home is that they lack enough patience. Too often they will hire the first contractor who says he can do all the necessary work.
However professional house fins know enough to invite several bids from a set of contractors, as well as explore the contractors they are considering hiring. You want to make sure you hire professional and licensed contractors.
There are far too many activities through the renovation and construction process that can result in injuries. If you do not hire a professional company that offers compensation to workers, you may find yourself liable and will have to pay some sort of compromise.
However, if the prospective company has adequate insurance to cover its contractors and their employees who may be injured on the job, they may be entitled to receive pre-settlement financing. This can keep you completely out of the equation and protect you from any unforeseen problems that could create additional complications and expenses along the way.
We can tell you now that once you’ve set up your final budget and financial plan, you should automatically expect to pay more than you originally planned. Inevitably there will be other expenses that occur during the renovation.
You may find a fountain or electrical problem that did not initially manifest during the home inspection. Maybe you meet a termite that could bring you back a few weeks and a few thousand dollars.
Make sure you add a little wobbly room to your budget before you fix it for good.
Overturning a house does not necessarily mean that you will sell it after it has been completely renovated. Some people find that their investment can go much further if they decide to transform it into a rental property.
This could be for full-time tenants or through a third-party site like Airbnb. Weigh your options and find out if your investment is better if you become a real estate manager or a simple reseller.
The most important thing you can do is fully educate yourself about the process. Ask lots of questions and talk to professionals in a variety of fields who have the knowledge you may be missing.
Talk to real estate agents to find out about the apartment. Talk to a financial planner or accountant who might be able to help you build a realistic budget.
Talk to local contractors who have a solid understanding of the realities of dealing with specific home projects, especially renovations. It is a great investment of time, money and energy for turni domon. Don’t waste some of your jumpings too fast.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Real estate is most often a large investment. Having at least one property you own can reassure you that you will always have a roof over your head, as well as the flexibility to create the ideal home for yourself without having to worry about someone else’s contribution. However being able to branch out and buy a second property could also be very helpful, especially if you are lucky enough to have the money to make a deposit. There are certainly advantages to owning more than one property – but is it really worth it? Here are some pros and cons about it, and you can decide what works best for you.
One of the main reasons why people will buy a second property is that they can rent it to someone else. This is a great way to pay off the mortgage and cover general maintenance costs, but you can also benefit if you estimate the rental price correctly. Whether you decide to hire full-time tenants or lease the property for vacationers, it can be a very lucrative endeavor. If you rent it to new tenants, talk to a real estate agency to help you advertise it.
Renting your second property can certainly help improve your income, but with that comes extra responsibility as well. Before you go ahead with buying a new house to lease, make sure you consider all the duties you will have as a master. You will need to make sure the property is safe for any tenants or guests, and maintenance work such as fountain problems, electrical appliances, cleaning drains, problems with moisture, etc., will all be things you will need to organize and pay for as a landlord. You may also have to pay additional taxes on your second property.
If you have tenants residing on the property, you will not be able to dispose of them without good reason or notice. However investing in a second home could provide a backup home for you if you want to leave your current property temporarily, or if you would like to help your relatives with a roof over their heads. Maybe you even plan to move into your second home when you retire. Whatever the reason, having a second home can be the perfect backup home for you if the occasion calls for it. You could even use it as your vacation home if you rent it to vacationers.
This only applies if your second home is a significant distance from where you currently live. The reason this is a problem is that it is difficult for you to look at a farm that is far away from you, and if your tenants living there ask for care help, it can be difficult. organize this remotely. If you are buying a second home, it may be worth looking at properties a little closer to home, so it is easier for you to manage it.
Owning a second home certainly has advantages, but it doesn’t come without its challenges. Consider the above points and consider whether owning more than one property is the right way for you.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Invest A House, Flipping houses is an investment strategy that more and more people are exploring. Some renovate the property to make a ready profit, while others use real estate to manage rental properties such as Airbnb.
Regardless of the reason, you would make such an investment, you need to be prepared for the amount of research and work ahead of you. It works great for turning a house, so make sure you read this before taking out a loan and starting such a big project.
Overturning a house is not just about renovations. You want to have a clear understanding of the local housing market.
Find out which areas of your area are thriving and which might be too expensive or, on the other hand, unlikely to move. In real estate, neighborhoods are divided into different classifications based on income and real estate value.
The richer neighborhoods are labeled as Class A while poorer neighborhoods belong to Class D. You can save money by focusing on Class C and D neighborhoods for your initial investment, but there are other factors to consider, such as higher premiums from lenders.
If you are looking to buy a house for flipping, it is more than an investment in your future. It is an investment in a company.
As with any entrepreneurial idea, you will want to have a full and comprehensive business plan that includes your budget. Ask yourself a few key questions about what your budget might look like.
Here are just a few of the questions you’ll want to consider when you start planning your budget. There could be other valuable considerations, such as whether you will have a partner in your investment, or whether you have experience as a contractor and may be able to do some work yourself.
Investing in a house does not mean that you have to try to do all the home renovations yourself. There are times to hire a professional to perform some difficult tasks, such as roof repairs, plumbing or electricity.
This is especially true if you have minimal to no experience with these activities. However, there are some ways to improve the home for resale that do not require the extra cost of labor and can save you money on your overall renovation budget.
It means to be created. False stone panels, for example, are an affordable way to replace the mess, labor, and excessive cost of traditional masonry.
You will still have the aesthetic value of an enhanced stone, but this is a simple solution feasible on its own for a few hours. You just need a little patience.
Hiring a contractor for various renovations does not need to be a single proposition. You may want to start a network with local plumbers, electricians, roofers, and other service providers from whom you can apply for competitive bids.
Although you may have to lower the cost to meet your budget, you don’t necessarily want to accept the lowest bid you receive. It takes time to review reviews, testimonials, and licenses from each of the people you examine for possible employment. Start the process early so you can build these relationships over time.
We get that you might get excited about turning your first house. However, there is much to consider other than the eventual resale or rental of the home. Start doing your research now before you sink into deep debt.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
To invest in real estate, you must first purchase some property. With the constant movement of people, locating a house for sale is the simple part. As a real estate investor, you want to focus your efforts on identifying homes with motivated sellers to discover amazing deals. Hence the main goal of real estate investors is to look for motivated sellers or owners who have an urgent need or desire to sell.
While motivated sellers are not the only option to acquire real estate, they are one of the most effective methods to acquire difficult real estate or capture a great deal. In this article, you will discover how to find real estate to invest in motivated sellers.
Developing the ability to identify motivated sales leads is a skill that every real estate investor needs to develop. A motivated seller is an individual or company eager to sell a property they own. Someone who has a serious motive to sell their property is a motivated seller. It is a common misconception that offering low prices, significant discounts and flexible financial terms encourage customers to bid on items they want to buy.
For all types of real estate investors, motivated sellers represent an abundant source of investment capital. For example, when I want to sell my house fast, an investor can make a larger offer. When sellers rush, they may devalue their property and accept investment services. Timelines can range from selling the real estate quickly to negotiating alternative financial terms such as raising money in advance and repaying the balance over time.
Here are the best situations when you can deal with a motivated seller and get a good deal with the investment property:
A homeowner may be in danger of losing his or her home as a result of a foreclosure. When a homeowner is unable to pay, the lender may compel the sale of the property by foreclosure auction, in order to repay the debt. Although it represents a quick way for the lender to recoup their investment, it is a terrible option for the homeowner, as the auctions usually result in lower selling prices. In addition, it leaves a stain on the credit of the borrowers, so they usually want to avoid it at all costs. They will usually try to sell quickly to prevent foreclosure if there are no other means to save their home. This is the best time to negotiate with a motivated salesperson and invest in the pre-execution houses.
Changes in tax laws were often important reasons to sell. When tax laws are changed, investors may have to respond quickly to prevent increasing their liability or making the property less attractive to prospective buyers. Keep in mind that an increase in interest rates can have a similar effect.
In addition, the solution for motivated sellers to pay delinquent taxes is to sell their property. The most typical method of selling a house with free property taxes is to repay the taxes with the sale proceeds. There you would go.
At closing, the proceeds of the home sale will be applied to the mortgage and then to the withholding. A closing attorney will check the transfer to make sure all taxes are paid in full. After closing costs and real estate fees, any remaining amount will be delivered to the seller.
When property deteriorates, the owner may not be able or willing to invest in renovations. They would rather sell their home soon and in its current state. Millions of distressed properties are available, whether due to delayed maintenance, property age, vandalism, flooding, storm damage or fire. Fines, costs and violations associated with these concerns can be costly to fix.
Career changes, job loss or relocation of an employer are all mandatory reasons to sell a house. Few people have significant savings to endure dry seasons or handle two mortgages. Encouraged sellers will list the properties on the free market and anticipate an immediate, complete monetary closure. You can take advantage of this opportunity to invest with a discount from the motivated salesman.
Conclusion
Attending open houses, selling properties or collaborating with a local real estate agent can help you locate motivated sellers. Suppose a home was on the market for the given situation. In that case, the seller might be more willing to negotiate a lower price. Consider the ideas mentioned here as you plan and prepare to invest in your chosen property.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architrcture, Lifestyle and Interior Design.
When buying an investment property, you may be inclined to skip a professional Real Estate inspection, especially if you are planning to renovate the property. However, a home inspection is just as important for investors as it is for homebuyers.
A home inspection can tell you if there are serious problems with the house that will need a lot of attention and could cost you much more than you planned to spend for the renovations or your investment. If the inspector finds problems with the house, you can ask the seller to lower the price or give you a seller credit to go to the repair costs.
As an investor, there are a few things you would be very careful about during the inspection. Below we’ve listed the main areas to inspect to make sure you’re investing in the right property.
Problems with plumbing can be a major headache, especially if you are not experienced in fixing plumbing problems. With a network of pipes and valves, you definitely want an inspector to check the pipes and water pipes. Repair costs of plumbing can add up very quickly, as plumbing is something you would probably want to professionally repair if necessary.
If there is a problem with the foundation of the house, such as a crack in it, you will look at extremely expensive repairs. Adjustments to the foundation are the most expensive repairs you could make to a property. Many investors will leave if there is structural damage related to the foundation and look for another property.
Sometimes fundamental problems can be identified with the naked eye, but other times an inspector will be the only one who will notice them.
Replacing a roof is the second most expensive repair a property could require. This repair could cost you up to $ 20,000. So, before you prepay an investment property, make sure that the roof is in good condition and remains for many good years.
Roof damage is not always a reason to back out of a new real estate investment, as it can be repaired to extend the existing roof life by many years. If the inspector does find any damage, make sure a professional roofer repairs it as soon as possible.
There are always companies nearby that can professionally repair your roof and extend its life at a reasonable cost. Simply search for your local business channels for such companies. For example, someone living in Texas just needs to search Pearland roof companies to find the right professionals to take care of these services.
As an investor, you will probably replace the oven, refrigerator and dishwasher and redo the bathrooms. However, your inspector should check the most important devices that you replace less often. These include the heating and air conditioning units or systems, electric fireplaces and some recreational appliances such as whirlpools and jacuzzis.
This fungal growth may seem harmless, but it can cause a lot of damage to a property (and its occupants) if it is not carefully cared for. When mold grows, it could cause rot and weaken the structure of your home. Not to mention that the presence of black mold could cause serious complications for your health.
If your inspector finds problems with any of these parts of the property, consider moving to another property or renegotiating the agreement with the seller.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architrcture, Lifestyle and Interior Design.
The US housing market has gained value around $ 2.5 trillion in the year 2020, more than any year since 2005. The strong demand and record low mortgage rates have been the main reasons behind this growth in the market. This could be the golden period for investors who want to start Real Estate Investing.
A low or bad credit score can become a hindrance for many investors buying real estate. So, does that mean you should abandon the idea of investing? NO!
There are many other options for investors to start investing in real estate despite a less than perfect credit score. Using the following investment strategies, investors can build capital through alternative financial sources and have better investment opportunities.
If you want to invest in real estate but can’t build the required capital due to a slightly lower credit score, then real estate wholesale can be a great option for you. Real estate wholesale allows you to make significant profits without having to buy an investment property.
Grocery real estate is completely different than flipping houses. You need to test your marketing skills and communicate effectively with everyone. Skiing how to make connections as a real estate investor will help you play the game of real estate wholesalers.
No investment or funds are required to start a grocery store, so your credit score is insignificant here. Mainly three parties are engaged in real estate wholesale: seller, wholesaler and buyer. Let’s take a look at the following example to better see how wholesale works:
Investors can earn anywhere from $ 5000 to $ 30000 with real estate wholesale. The key here is to build capital with smaller profit margins.
Asset loans are a great way to start investing in real estate. Lenders look beyond your credit score and give loans based on the post-repair value of the house’s offer as collateral.
Hard cash loans are short-term loans lasting for 6 months and up to 2 years. This is ideal for an investor looking for funds to buy an investment property, renovate it and turn it into profit in a shorter time.
La interest rate on hard money loans are higher compared to conventional loans due to the higher risk involved in real estate investing. The typical interest rates on difficult cash loans range from 7% to 15%.
Because the property is the only protection against default, lenders force you to pay anywhere from 10% to 50% of the loan amount on the down payment. The down payment is calculated based on the Loan-to-Value (LTV) ratio of the property. It may vary depending on the lender and the estimated value of the property.
For example, if you are willing to buy a property worth $ 100,000, then a hard money lender will offer a 90% LTV connection. That means the total loan amount will be $ 90,000 and you will have to pay the remaining $ 10,000 for the down payment.
Unlike the process of traditional lending by lenders, hard money lenders are not looking for your credit score, credit history or debts. An asset is a major qualification for difficult cash loans. This makes it easier for investors with a not so perfect credit score.
Documents such as a purchase contract, two forms of identification, a preliminary title report, proof of finance and insurance are enough to get a difficult loan.
Thanks to the simplified control process, investors can take advantage of a difficult loan within a few days or a week. This allows you to build capital in a short amount of time to capture a lucrative investment opportunity.
Hard cash loans are given by individuals or a group of private investors and they do not conform to any guidelines, which means you can take advantage of flexible terms. You can negotiate with lenders on loan terms, repayment schedule and other terms of the loan.
Another option is to approach private lenders to finance your real estate project. Private lenders can be your friends, relatives, business partner or anyone looking for a return on their investment.
A strong investment plan and the potential returns are the ones that private lenders are looking for by lending to you. So no matter if you have a bad credit score, private lenders can still lend to you.
Private lenders do not follow specific guidelines or rules and regulations. They give you a loan with their own money, so you can negotiate on terms like an interest rate or a repayment period with the lender. The key here is to compensate well to the lender to get the best deal.
When you have bad credit, you will have to try to convince a private lender to give you a loan. You can form a partnership with the private lender, where the benefit can be shared in equal parts, agree to pay them a specific interest for a defined period or offer to pay loan points to seal the deal.
Seller financing is also known as owner financing or purchase money mortgage. It allows you to sign a mortgage agreement with the seller instead of applying for a loan from a financial institution.
From a seller’s perspective, financing your purchase makes it easier to sell the house. This also allows a seller to collect monthly payments for an offer to finance your purchase.
A buyer usually has to sign a payment letter to take advantage of a seller to finance. The promissory note indicates the interest rate, repayment schedules and details of non-payment. These types of loans are generally repaid over 30 years with a balloon payment at the end of the loan.
The great thing about real estate investing is that it doesn’t need you to have deep pockets or a perfect credit score to get started. Everyone has an equal opportunity to build their wealth by investing in real estate.
Having a less-than-perfect credit score cannot prevent you from buying an investment property. You can choose alternative financial sources to make your first purchase and start investing in real estate.
Alternative financial sources are more flexible with their loan terms and may be more convenient for an investor in terms of repayment.
Your knowledge of the field, marketing skills, effective communication and ability to make connections will open doors to more investment opportunities.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Investing in real estate there is no piece of cake. If you are new to real estate investing in Pakistan, you may find it difficult to get started real estate in Pakistan. Many newbies disagree on starting, how much you need to invest and what things you need to consider in a property before buying it.
You may also notice that some people around you are real estate gurus. They are constantly investing in real estate, diversifying their portfolio, investing in houses or managing rents perfectly.
But, how do these work real estate gurus know how to invest in real estate and earn great income. Well, there are some habits of successful RE investors that they follow religiously.
In this blog, we will discuss the habits of success RE investors that helped them stand out in the crowd.
So let’s get started.
There is only one side of the market, and it is not the bull side or the bear side, but the right side.
~ Jesse Livermore.
First – you need to understand the real estate market and how it goes up and down. Without a good knowledge of the market, you will not compete and succeed in the market real estate market. So, before putting your little earned money into the market, make sure that you do your research and diligence about the market and how it works in Pakistani society.
For example, if you want to buy a piece of land, research first. Try to explore as many areas as possible. Make a study of that area. Try to know the prices in the region. Calculate the investment and options. Ask about the area and make sure the development authorities approve your purchase of that area.
“Leave it for sure. The opposite is not uncertainty. It is openness, curiosity and a willingness to embrace a paradox instead of choosing sides. The ultimate challenge is to accept ourselves exactly as we are, but never stop trying to learn and grow. “
– Tony Schwartz.
Like all other business and investment opportunities in Pakistan, real estate also comes with risks and uncertainties. High interest rates come with great rewards, but you have to think strategically if you want to stay away from problems and financial losses. With well-informed decisions and sound strategies, it is effortless to mitigate risk in real estate.
Patience is the key to success. Quick decisions won’t get you anywhere, and most likely you’ll end up with financial losses. To protect your hard-earned money, make sure you take calculated steps and well-informed decisions. Patience not only saves you from losses but also exposes you to many new business opportunities and avenues.
So make sure you don’t jump on the first property that comes your way, and research before making the final decision.
Before doing anything investment in real estate, make sure you consider facts, not emotions. One of the best habits that all real estate investors have is that they can separate emotions from trading. In short, their decisions are based on hard concrete facts and projections, not on emotions and subjective information.
Plan your investment decision. A plan is important because it keeps you on track, and you don’t have to waste your time, energy, and resources moving back and forth randomly. For example, if you have finished a piece of land, think about what you can do with it. What things will you change, and what will you add or remove?
Ask yourself as many questions as possible and plan accordingly.
Keep learning about the entrances of real estate. Education is one of the easiest and best ways to succeed in real estate. By visiting education, you will be able to know everything about market changes and trends. As a result, you will be far ahead of everyone else in the market, and as long as you continue to learn, you will continue your success.
“A man without ethics is a wild beast released on this world.” ~ Camus.
Be honest with yourself and the people associated with you in the business world. Keep good morale and a strong image because, in real estate, word of mouth is very important. All successful real estate investors have built trust with the people around them, and it is precisely that sense of trust that helps them grow.
“People influence people. Nothing affects people more than a recommendation from a trusted friend. Reliable forwarding affects people more than the best broadcast message. A reliable referral is the Holy Grail of advertising. “
~ Mark Zuckerberg.
Never underestimate the power of references. Period. All successful traders and investors always encourage recommendations. Recommendations are the perfect way to contact any friends and family of real estate investors and previous or current clients.
If you want to stand out in the crowd and take all the glory, develop a niche. A niche will allow you to better target and focus on people to meet specific needs.
It is not simple to perform all the tasks yourself. All wise investors have the habit of delegating their duties to others. For example, many successful investors need management help features. However, it would be useful if you remember that getting help does not mean disengaging or cutting yourself off from the business.
“Networking is an investment in your business. It takes time and, when done correctly, can yield excellent results over the coming years. “- Diane Helbig.
Interconnection is one of the most important things in real estate. A massive portion of the real estate sales depend on interconnection. All successful investors place particular emphasis on building relationships with the people involved in real estate. Networking provides you with opportunities and new income for the growth and development of your business.
Last but not least, successful real estate investors make their partners happy. In real estate, the partnership is essential because of the amount of capital invested by different partners. For smooth and stress-free investments, you need to work together to achieve a successful business and investment operation.
So these are some of the habits of successful RE investors. Go through these positive and effective habits and try to understand their usefulness in the real estate market. Try to implement these strategies and practices in your company and see the results.
If you want to ask questions about the habits of successful investors, please leave a comment in the comments section below, and we’ll get back to you as soon as possible.
Until then,
Happy investing!
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
The Capital Development Authority has published a comprehensive list highlighting all approvals and Certificates Without Object (NOC) required for the process of investment and development in Pakistan’s real estate market.
Feeta.pk brings you a list of required documents for NOC / approvals for a project in a plot of approved housing. It is as follows:
For more information on the real estate sector of the country, keep reading Feeta Blog.
The real estate investment market is not static and unchanged, it moves according to the times and behavioral trends. As an investor, realizing the changes is the key to protecting your assets and maintaining your profitability. New models are always born, seemingly coming out of nowhere, and models that were previously mainstream are also starting to become less popular. For example, there was a time when repair and clicking were the most popular way for investors to make money, but now because the costs don’t make sense, and the current market isn’t designed for short-term holdings, people favor other methods.
Smart investors don’t insist on forcing a method, they observe the market, see what works and then turn to it. In the last 12 months, we have seen a lot of changes in the real estate market. Many cities suffer from historically low inventory, along with low interest rates, which makes it a truly competitive market to buy property for home buyers and investors.
However it is not the end of the world, here are 4 investment models you can use now to set yourself up for a great future.
A boom town is a city or place that sees a rapid explosion of population and economic growth due to oil or gold. After the pandemic, something completely new arose, Zoom cities. With people working from home and not needing to drive to the office, people have decided to relocate to the suburbs of the city or even to the rural areas, where they can have more space and cheaper housing while still getting an internet connection. can work. It has created a market for desirable places to live outside big cities.
This caused the growth of Zoom cities, places where people moved to avoid crowded cities and experience a higher quality of life. As a result, in these cities, house prices have increased significantly due to this new demand. As an investor, you can easily get a share of the action by buying properties in these regions, and equipping them with good internet and great amenities so that people can come and have a long and comfortable stay. If you can get a good property, it can generate a lot of income for you.
The great thing about this strategy is that it can be applied at any price, even in the luxury market, it can be incredibly lucrative. According to Gulf Homes Lux Homes, “As people continue to discover beautiful cities and towns outside the freeway, more shoppers will flow into those areas and turn them into valuable zip codes. If you want the opportunity, it’s there to take.”
An area in the housing market that is often neglected and overlooked is the elderly who do not want to stay in full nursing homes but also need care and support. This has led to the rise of what is called residential cohabitation, a service that allows them to stay in their homes, but also receive the necessary care and attention. These people have equity in their homes and need money, so as an investor, you can give them the opportunity to stay in their homes, give them access to some much-needed capital, and solve a problem for underserved demographics.
How does a real estate investor live in a multi-million dollar home paying only $ 1000 a month? By a strategy known as house hacking. By housing, an investor buys a home and then subdivides it to create several dwellings for different tenants.
These tenants pay the rent and it is a win-win for the investor as it reduces their mortgage payment. It’s even better to do this strategy with multi-family housing because it allows you to really maximize. If you want to buy a home, reduce costs, and pay for it quickly, house hacking is what you might be looking for.
Buying and holding is certainly not a new investment strategy, but in recent years it has become less popular than strategies such as repair and launch and wholesale. Most people think they need to throw home for profit as soon as possible, but right now that’s the last thing you want to do. Part of your investment portfolio should include assets that you want to hold for the long term. With these properties, you can be sure that your investment will be protected against market volatility, guaranteeing appreciation and growth of your investment.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
As if out of the challenge, the house Booming Market seemed to operate under its own set of laws through the COVID-19 pandemic. The factors supporting the price increase are easy to understand. The already low supply in the market was further limited by supply shortages, the astronomical rise in the cost of timber, and the health and safety complications that delayed new constructions. At the same time, historically low mortgage rates have spurred market demand. Families, recently free from the boundaries of schools and office districts, and still metabolizing the work-from-home transition, quickly needed more space. With low rates and high list prices, many did not have to be said twice.
Established investors rarely have to be reminded that when one door closes in the market, another opens. With minimal exceptions, the real estate market accelerated over the course of the COVID-19 crisis. Consensus flow and revenue appear to be hampered. If the new normal arrived, it came with giving gifts. Here are some important ways post-COVID homeowners and investors can position themselves as grateful recipients.
Homeowners and investors alike are under new pressure to observe their home addresses as a functional asset in their personal financial portfolios. It’s not just an asset, it’s an asset more valuable than it probably has almost ever before. And to take it a step further, its gratitude is currently accelerating.
In some cases, just that information was enough to catalyze important decisions. Supposedly, the question of selling or refinancing has been a popular topic in market houses across the country. But a third option must be added to the sell / not sell dichotomy: renting a home or investment property was a winning strategy in the COVID era, and especially short rentals were some of the best results. the beginning of the pandemic.
With almost no barrier to entry, established investors and existing homeowners can quickly orient themselves towards a short-term rental strategy. But any good investment, regardless of ease or availability, benefits from a strong diligence strategy. By comparing your property to similar rentals in the area, and studying the seasonal monthly income for your area, you can list your offer – a bedroom, an entire floor – at a price and stay that will position you for optimal returns. Large margins, consistent demand and less time between payers of tenants have made short-term rentals one of the most investing entry points in the aftermarket.
The success of the Airbnb model – the comfort with and preference for more local hospitality offerings – has certainly foreshadowed a change in our way of thinking about travel. But that model also changed the future of the real estate, and COVID-19 was a catalyst; the future came faster than anyone thought.
The millennial generation is a growing force in the housing market. In the face of bloated housing, renting remains the preferred option for many young professionals. Among that group, short-term rents give the greatest flexibility, and that flexibility is worth paying for; whether they travel for work or prepare for the final re-office call, tenants will pay above-average market prices for shorter, more flexible stays.
Even with their growing success, short rentals are reminiscent of the image of a holiday destination. But a look at the numbers shows that demand has infiltrated the markets in almost every segment. The multi-family sector did particularly well; buildings with 40 or fewer doors capture some of the steepest edges on the market. The National Multi-Family Housing Council reported that 65% of functional Airbnbs are located in multi-family buildings, and Airbnb CEO Brian Chesky reported that the company will need millions of more hosts to meet the current demand.
Landlords also have a new choice as the future of real estate continues to materialize. A hybrid model – a game strategy that supports long-term tenants while designating other units as short-term leases – could put landlords in the best position to take advantage of long-term relationships without losing the market reward for the short-term strategy. Automated marketing strategies can help adapt unit pricing and stay long to the market ideal, and partnering with management companies for hospitality management can easily offset the cost of more frequent tenants.
These accelerated changes in the real estate market provide homeowners, investors and landlords with unforeseen potential. Whether it’s renting a spare bedroom, pivoting to a hybrid model, or acquiring new rental properties in the multi-family sector, the accelerated arrival of the new era of real estate is full of opportunities. With the right attention to their positioning, every market observer can find new avenues to financial freedom and portfolio diversity – two major silver roofs after the trials and tribulations of COVID-19.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
If those who have done some online research for any trip will notice watching videos, this is the best way to get close to that place.
Whether tourists are looking for an ideal seaside home or even a downtown apartment, videography occupies the best place simply to visit the place in person.
Holiday rental owners can use video content to deliver things that photos can’t, so these could help owners get extra reservations.
Anyone can use platforms like Facebook or YouTube to post amazing, engaging and remarkable local listing videos that can help increase vacation rental bookings. Many people seem to be digital natives and respond much better to this kind of material.
A home walk highlighting the property’s greatest features is a very prominent kind of video.
The combination of videos and photos could be used to bring visitors to a detailed tour of the entire site, and aerial shots can show the outdoor environment and adjacent area.
To create humor, newly listed clips often include a narrator or background music. The best approach will offer a quick hyperlink for the location list so that consumers can learn more.
For an introductory video, the homeowner will describe someone’s business and describe to the visitors the particular features included and reasons that visitors will enjoy this place over a competitor’s locations.
Discuss when you entered this market, how that attracted you to rentals, and all the particular benefits the company offers that set you apart from your competitors.
You can post the clip on your social profiles. Give visitors the contact details, as well as details about the location or other location details. Add several important keyword terms in the title to improve the online visibility of the videos.
Give the public a visit to the neighborhood, highlighting its best features, including picturesque elegant places and views.
Visitors are eager to see everything they would do during their stay at the venue, and that’s why such a kind of film might be packed with helpful information. This can describe why visitors should spend a vacation in that place and give them a list of activities to perform and see if visitors will rent the home.
To complete the property advertisement, this is also an excellent natural material to publish on online portals or social networking accounts.
Comments seem to become usually convincing, but audio-visual testimonials from happy visitors can almost certainly be much larger.
To create a video testimonial, invite any satisfied visitor if they might be willing to appear in any. In return for their time, a special deal, discount or additional coupon could be given to visitors.
This is amazing to expose the site, however, once others get nice reviews spread that don’t come from a business, it has much greater importance.
If the company has a Questions section, why not just put such useful hints as a video?
This may teach visitors exactly how everything works on the site, educate visitors about the housing regulations and answer every additional typical question about a visitor in the video, including text or even storytelling.
Because of the audio-visual aspect of the responses in the clip, they may be much more inclined to remember, which means that smaller visitors might raise such concerns, and anyone who does so would be less likely to doubt them later.
Users are aware of the impact that quality photos can have on the overall performance of any rental unit.
Even videos can bring more visitors to the listed website and reinforce specific reasons why anyone should choose it over others, which can improve the holiday rental bookings almost as well.
And, fortunately, creating a video is now simpler, unlike before. Users can hire a video creation company to help them record and create the video or you can create it yourself. In that case, users might be able to get greater results and satisfy consumers.
Be sure to experiment with a variety of methods and promotional platforms unless you discover something that works for the vacation rental company.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Having an investment property is one of the most amazing sources of income you can have for yourself. Not only do you care about your future, but you also need to focus only on how you can sell the investment as high as you can. With that, you should try to look for ways to improve your property to increase its market value, to match the look and cost you are aiming for.
When selling or renting a property, you can’t expect to set high price tags when it’s not upgraded or has basic home features. You need to match your price so that people are more interested. They will know that they will get what they pay for.
Listed below are the home updates that can help boost the market value of your property:
A fireplace helps highlight the living room and improves its appearance dramatically. When a person enters the room, the first thing that will catch their attention is the fireplace. That said, you may want to update your fireplace, and allow it to add beauty to your belongings.
If your farm has been sitting in the market for too long, the fireplace may no longer attract you. You may want to upgrade to modern fireplaces to help enhance the look of the living room.
When you upgrade your fireplace, make sure it matches well with the interior of your home. That way it will blend perfectly, attracting more customers to buy or rent your property.
One of the biggest selling points about a home is an excellent kitchen. Almost everyone loves to cook, and they would love to have a great place to work their magic. On that note, you may want to improve your kitchen features and remind yourself that your buyers are happily putting your home on their shopping list.
You can start by upgrading your surfaces with high quality materials like granite, marble or quartz. Make sure you choose roofing colors that match the theme of your kitchen. Along with that, it is ideal to replace your kitchen cabinets with improved materials that do not absorb moisture, enabling them to last a long time.
As you improve your kitchen features, you can replace the existing faucets with unique features such as sensors and handles for ease of use. You can also choose to include under cabinet lighting that highlights the backsplash of your kitchen. This allows people to enjoy their kitchen much more because of the warm atmosphere brought by the accent lights.
Most people like to have their own private place where they can silently do their home activities. Working in the common area of the home may work, but some prefer to have some privacy, allowing them to better concentrate. With that, you may want to include a home office for your potential buyers.
As you set up a home office, make sure you place it in an area where it can light up as much as possible. This will help increase concentration, and allow natural sunlight to enter the room. You can stage the room so that your potential buyers have an idea of what their home office will look like.
With the technology today, the smart home is becoming popular as it helps to add security and convenience to homeowners. With this additional feature, you can be sure that it will increase your market value much more.
You can start by allowing your doors to have smart locks where the need for a physical key is no longer needed. Homeowners could simply type in a passcode, or use their fingerprints to unlock their homes. Thus, intruders will find it difficult to open the doors, enabling maximum security.
Moreover, you can choose to install smart lights and speakers that allow people to turn the lights on or off with voice commands. That way they don’t have to pause their activity just to turn on the switch. They can easily dictate to their home what they need to do. They can also darken or brighten the room, depending on their preference.
Electricity bills play a big role in the monthly payments that each household has to deal with. When you choose to install solar panels on your property, you can help new homeowners reduce their electricity bills, which can greatly benefit them.
Installing solar panels can be an expensive feature. However, their presence can help increase the market value of your property, allowing you to increase your sales.
It will also be useful if you can add batteries for the solar panels. That way the tenants can still have a continuous source of energy even at night.
While carpet floors are a popular choice in most homes, some homeowners would not prefer to have them in their homes because they are difficult to maintain. In addition to being very careful about spills, stains and fire, cleaning your carpet can be difficult and expensive, especially when you need to thoroughly clean them every year.
Today most people are looking for homes with hard floors as they are easy to care for, yet add beauty to their interior. Hardwood floors can give a homely feel, yet allow for flexibility in interior design.
No matter how modern you renovate your home, if you allow your old appliances to stay in it, it can however have a negative impact on your potential buyers. While they are an easy replacement, people will still worry about the additional cost, and will only prefer to have a moving home.
Ideally, you should update devices that people use every day. These are the refrigerator, oven, burners, hood, washer, dryer and TV. That way they will know they are buying a brand new home, encouraging them to pay more for the upgraded appliances.
Moreover, it is useful to upgrade your devices to the latest model to increase your market value considerably. Everyone is excited to live in a new home where everything is up to date, allowing them to maximize every opportunity.
While you are selling or renting your investment property, you need to make sure that you are well prepared for it to get the most income. While upgrades and renovations may cost more, they will help attract home buyers, allowing you to increase your price.
Also, don’t forget to use popular home interior projects to attract more people, as eccentric projects may not favor most. You can choose minimalist, traditional, industrial or Scandinavian.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architrcture, Lifestyle and Interior Design.
Selling a property can sometimes be a difficult task. If you have tenants who still live inside while you are trying to sell and give tours of the property, things can get even more difficult. An excellent level of diplomacy and care is required as you want to give a solid first impression of the property to potential buyers, but also the current tenants still need to live in the space and have access to their belongings. You will need to make sure that your tenants are taken care of and protected throughout the process. The following will explore some of the critical steps you can take to make it easier for everyone to sell real estate with tenants inside – you, the tenants, and potential buyers.
You have an absolute right to sell a property you own, even if tenants still live within it. The key factor in this process, however, is that certain ongoing rental agreements must be honored by the new buyer. This means that if your tenants have seven months of lease remaining when the property is transferred, the new owner must allow the tenant to stay for those seven months, paying what they previously agreed to pay. If there is no lease agreement, the tenants will have to agree to leave if the new owner wants them. If they refuse, the new owner will have to go through a traditional eviction process, and the tenants will be legally regarded as occupants.
Like relationships and other projects, communication is the core foundation on which this whole process will rest. You need to be completely upfront with your tenants about considering selling and what the process will mean for them. It is a good idea to explain the legal obligations of the next landlord to honor their current rental agreement. Explain what they can realistically expect when ownership changes hands and when their licensing agreement ends. Explain that there is a chance that the new owner will want to make changes or renovate the property and earn more in the future. The more honest you are, and the sooner you share this information, the better your chance that your tenants feel they have the time and information they need to navigate the new situation. If you have established faith, there are many more chances that your tenants will help when it comes to shows. Moreover, you want to be completely transparent about when shows will take place and warn people as much as possible. Everyone has bad weeks where they need a day to order before guests come.
If you have tenants who do not have a written lease (i.e., they pay rent monthly), you are legally required to give them at least one month’s notice of the sale so that they have time to relocate if the new owner demands it. As explained in this article at HBRColorado.com, if the tenants have been living there for more than twelve months, you must legally give them two months’ notice. As you probably know from your profession, one or two months is not always enough to comfortably find a new life situation. If possible, give your tenants more time than this. A high-level notice will also give them time to work out the emotions of leaving their home when they weren’t expecting and better increase the chances of a smooth transition for everyone without any problems.
If a tenant is very dissatisfied with your decision to consider a sale and threatens damage to the property or some other annoying reaction, you always have the option to convince them to leave when the property changes ownership. Legally prosecuting an eviction can be incredibly expensive and time consuming. Many landlords find it much easier to offer tenants money to relocate. Many people in this world would happily take a few hundred dollars and relocate without any problems. This is often the fastest and least frustrating way to change a rental, as some experienced landlords will tell you.
As stated above, if you have a good relationship with your tenants, viewing should be relatively easy to set up. Respect tenants’ schedules and requests. If they say you have to be out by 4:00 because they have to prepare the kids for football practice, do your best to be out by 4:00. Legally, a tenant must be informed of a visitor at least 24 hours in advance.
It is important to note that if a tenant has a written lease, it is in accordance with their legal rights to refuse to view. You may need to agree with your tenants to change their minds, including possibly paying for their time while the visitor is in their unit.
Considering the legal standards for when rent is allowed to increase and how much, it is possible to sell your property with tenants still tied up could result in a lower sale price. A potential buyer knows that they will not be able to increase the cost of renting until the tenants ’lease ends. Moreover, a potential buyer might feel that a tenant is happy or not about the change of ownership and may want to avoid the property if he or she feels that the tenants could be causing problems.
If you own some real estate, you might be quite comfortable with the process of buying and selling real estate and tempted to sell on your own. Selling with tenants who have rentals that will need to be confirmed, a real estate agent could be a big help. An agent will know which buyers are looking for rentals for an existing easy cash flow (meaning people who are willing to have a rental unit not vacant) versus which buyers are looking to renovate and raise prices. With this information, a real estate agent can bring you the right potential buyers who will be willing to work with the situation in which you find yourself. An agent can also help you accurately assess the property depending on the tenant’s situation.
As with any real estate sale, cleaning things up before viewing and promotional images can be a big help. If you have a lot of tenants, there is often a greater chance that community areas will be less cared for (the tragedy of the commons is a whole economic theory that applies shockingly perfectly to rental properties). Take the time to clean up any trash or other debris like a dog skating in the grass. Give the hallways, washrooms, stairwells and all other places good refreshing cleanliness. Your tenants will probably enjoy this as well.
It is especially important when you have tenants to do a new inspection when you are thinking of selling. People are usually not as gentle about the properties they rent as those they own, which means that since the last inspection there could be some fountain problems or other problems that could be dealt with before sale. This can save a lot of time due to contingencies later, especially if it turns out that the place is not as great as you previously thought.
If you’re not sure what kind of trim you need to make to the property before selling, a wonderful rule of thumb is to work with the outside. Get lawns trimmed and trimmed. Repair holes in the driveway or parking lot. Give shutters fresh paint. La first impression when you sell a property is the most important impression. This is doubly true for real estate that someone will rent later, as potential buyers will think about the first impression their potential tenants will have when they arrive to view or browse photos online. Some more handy tips include:
The above tips should help you understand the process of selling a property that has tenants tied to it. Again, maintaining honest communication is essential if you want this process to be smooth.
For more information on the real estate sector of the country, keep reading Feeta Blog.
If you are green and tend to invest in real estate, it is advisable to remember that this is an industry that requires a lot of preparation and proper planning to ensure success over time. As a first-time real estate investor, you need to be well aware of the various mistakes you and your fellow entrepreneurs are looking for along the way. Fortunately, most of them are avoidable through the use of appropriate knowledge and skills.
Once you’ve decided and decided to start the world of real estate investing head-on, here are some of the often-believed jokes that a first-time real estate investor should avoid and solutions to prevent them from happening.
As a first-time real estate investor, you will need to learn the basics of real estate trading and undergo proper training to be ready to move forward. With proper training, you are less likely to take false steps along the way. The training can come in the form of books, training sessions, seminars and many more.
If you want to learn more about the basics of real estate investing, take a look real estate forum and others may be of great help. Keep in mind that if you overlook the need for proper preparation, you are said to be more inclined to make a completely avoidable mistake at some point that may cost you a lot of money.
It is believed that one of the most commonly seen faults that most investors usually make is buying too big. Taking on a considerable investment while you are still new to the game is not a wise move. For example, buying a significant income property as a multi-family home can be expensive to get ahead of. Additionally, it is difficult and expensive to manage.
Avoid growing up starting with a smaller, smaller property like an apartment. A small investment is something you can afford without exceeding your set budget. It will also let you know what a farm is like and how it is managed. Once you finally master the basic skills of the company, you can steadily grow by buying a new farm every two years.
Bourgeois real estate investors are usually advised to choose the rental property with a positive cash flow. It is important to keep in mind that the cash flow depends on the costs and rental income. In view of this, it is important to obtain an accurate estimate of these figures. In some cases, a new investor might overlook or forget about the repair costs or underestimate the price associated with finding the right tenant, reducing the potential overall profitability of the property.
It is believed that many potential and indifferent investors are often deceived by the big promises of easy profit and dive into real estate without knowing how the business and the local market situation work. Like any business venture, you need to be prepared to handle the specifications and different aspects of real estate.
The best way to be prepared is to do prior research and read various sources of information before deciding on investing in wolf ownership. You can find online and offline (books, magazines) resources to learn various helpful information about the industry.
Although most first-time real estate investors usually do not have a large budget, it is sometimes said that they may pay too much for investment property along with some services or professionals they work with.
The reason for this is other than a lack of working knowledge of the real estate industry. Although you will eventually learn and pick up important indications over time, a first-time real estate investor should not compromise the projected profitability of property just because they are new to the field.
Full reading taking advantage of the resources available and learning from individuals who have been investing in real estate for years should be your priority before making a move. One way to make sure you are paying the right price for a property is to do a real estate market analysis with the help of an experienced real estate professional.
Forging partnerships when investing in real estate might be the right move, especially if you are a first-time real estate investor with hard financial resources and limited real estate management skills. Unfortunately, a partnership can hide various disadvantages that can put you in an unfavorable situation in the long run.
It is recommended to avoid entering into a partnership immediately. This also applies to relationships formed just to buy a huge property or to have someone with whom to share the risks handled. If you want to enter into a partnership, you need to choose a caring company. Ideally, choose someone you can trust and at least know how the industry works and its internal workings.
The rental property in which you will put your money will depend on your available budget and financial choices. If you have a considerable amount of money, it is better to buy a slightly larger investment property than a smaller one that can only produce low income levels. Remember that a larger property will almost always provide you with better income options.
It is best to calculate your finances carefully including your savings, financial options along with rental income and accompanying costs. Based on your current financial status, look for a property that matches your practical budget range.
A first-time real estate investor might be too hesitant to choose. It is understandable to experience having cold feet in front of something completely foreign to you. Unfortunately, your indecision will make you miss out on good deals that go quickly on the real estate market. Although care is necessary, being too timid will cost you considerable opportunities and opportunities in the industry.
You can make the right choices with the knowledge you have gained from research and training. They will serve to strengthen your confidence to make the right decisions with your investments over time.
It is believed that some first-time investors often misjudge the amount of expected rental income expected from a given rental property. Keep tabs on the figures to avoid facing the opportunities of reduced estimated cash flow. Failure to properly perform prior assessments of the numbers can potentially endanger your property due to a negative cash flow, which is detrimental to it.
In real estate investing, location is said to be a key element as it can determine several aspects that an investment property owns. They include house prices, types of real estate, the current market, rental groups, laws and guidelines, availability of other rental properties, and many others. But it is said that the location of investment real estate plays a crucial role to be addressed.
Although it may be easier to choose an option in your area because you know the details better, don’t overlook the option of overseas property if the local market is not a good investment choice at the moment.
The best way to make the right decision is to study the target market. Analyze price trends, costs and the like. Helpful data will serve as a guide if it is the right time for you to buy and manage an investment property in a specific location.
Once you choose to invest in real estate, make sure you are ready by learning the basics and essences to make the right and sound decisions while pursuing deals in this very little industry. Even a small mistake can cost you, which may leave your money wasted.
If you are aiming to make the right moves as a first-time real estate investor, the above mentioned list can serve as a guide for you to make the right decisions in the company and eventually achieve success over time.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architrcture, Lifestyle and Interior Design.
Airbnb’s property management services include leading homeowners through the process of monetizing their vacation rental. Many families own cabins, trailers, and vacation homes located a few hours or more away from their main residence. To compete against the best hosts on the platform, you need to understand how to effectively manage your company as a host or as an owner of an Airbnb management company. Effective management of Airbnb is critical to the success of your company.
By reading this comprehensive guide, you will learn about all the essential elements of property management and position your organization for success.
You cannot succeed in this field without having a working knowledge of it, just as you cannot succeed in any other. However, becoming an owner of Airbnb is not mandatory, and many people excel in this field with only a high school diploma. However, you will need a thorough understanding of Airbnb’s holiday rentals and markets. As a result, if you lack this information, the first step to becoming an Airbnb property manager is to get it quickly.
You should ideally have some experience hosting guests on Airbnb. If you’ve already hosted on Airbnb and managed your game name on your own, you’ll show potential customers that you’re a professional. Additionally, this will help you anticipate worries, identify potential problem guests and solve typical challenges. If you don’t know the holiday rental industry or how Airbnb works, online seminars and courses can educate you. You can also hire Airbnb management services like homehost.com.au and similar websites if you want extra help.
Self-management as an Airbnb property manager is not scalable. Even if you do everything better than anyone else, you can’t accomplish everything and expand your business at the same time. It’s because as you grow, you’ll get other properties scattered throughout the area. If you strain yourself too thinly, both the guest experience and your business will suffer.
There is no reason for property managers to handle everything alone anymore, as several tools and resources are available to help them on a scale. Because the first thing guests will notice about your property is its cleanliness, you need to start there.
After that, you may want to consider using Airbnb automation tools. These not only save you time and money but also improve your appraisal. For example, automating visitors improves your response time, which improves your rating.
Most basic rental homes remain vacant until a tenant relocates. Each tenant will have unique preferences and will want to customize their space. On the other hand, Airbnb is amazing because you have to furnish and decorate the area in advance for the arrival of your first visit.
Three critical elements of Airbnb’s success are choosing a style that highlights the best qualities of the property, attracts the widest possible audience and matches your furniture budget.
Property fees are another expense that many short-term rental investors overlook. Cleaning, beneficial management, repairing damage and taking care of external property are just some of the services offered. Never invest in Airbnb rental property without first analyzing all related costs. Financial planning at an early age is critical to avoid unpleasant and often unexpected financial surprises later in life.
To stay ahead of the competition, you need superior property. You can increase your Airbnb rank by optimizing critical items on your list (such as the title, description, and photos of Airbnb). Additionally, high quality posts attract a considerable number of potential visitors.
When it comes to improving your Airbnb listing, professional photography is a great place to start. Professional high quality images are the most effective approach to market and attract people to your holiday rental. Additionally, an amazing list should include:
Sen marketing, it is not possible to establish a viable firm in a highly saturated field. The most effective way is to develop an inter-channel marketing strategy by expanding the reach of your message. To get started, advertise your property on vacation rental platforms. It will definitely help to improve the display of your list and the number of questions it receives.
Having a presence on social media would be helpful. Create a Facebook business page and an Instagram account for your company. You can develop a loyal following by regularly sharing articles about your home, local activities, and tourism destinations.
If you’re interested in the vacation rental industry, looking for a potentially lucrative career, and like to work under your requirements, being an Airbnb property manager may be appropriate. Suppose you want to work as an Airbnb owner. In that case, you will need to hunt down co-hosting opportunities, convince homeowners to hire you, develop a business strategy, and automate repetitive activities through vacation rental programs.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
When it comes to their investment property, investors will have countless choices – one of those is flooring. Nor is there a solution for all sizes – the best choice floor will largely depend on the property and what the investor intends to do with it. If you have a luxury rental property, then you will want something cheap and able to withstand damage well. For luxury rental property, potential tenants will have certain expectations that you will need to meet. Ideally, you want something that at least meets minimum expectations in terms of appearance, but can also last a long time because you don’t want to replace it again a year later. To fix and click features, it’s less about quality in many cases and more about how it looks. This of course will largely depend on the market, the buyers, and so on, but the thing is, many factors will have to be considered by investors.
So even though we don’t have the right answer, here are six types of floor coverings that you might want to take a closer look at when evaluating potential options for your property.
Nut floor is a great choice for those who want to add a beautiful natural shade of warmth and earthiness to their home. These floors come from walnut, which has been popular since ancient times for its durability and rustic appearance. You need to install these floors so that they don’t get too wet, as they can shrink and swell.
You may also want to consider walnut flooring if you are looking for something with beautiful colors. However, we recommend spending time finding the perfect installation company, as this wood is hard to work with.
Laminate floors have become more popular in recent years, and for good reason. Unlike hardwood, plywood does not need to be refined or re-stained constantly, saving homeowners a lot of time and money! They are also much easier to clean because their surfaces withstand stains from something like wine, coffee and even pet accidents.
Linoleum flooring is a material made from natural materials such as cork, linseed oil, pine rosin, and ground limestone. It is easy to install and requires less space than other types of floors. It can be both inlaid or on the upper surface. This type of flooring also has antimicrobial properties that decrease the mold and bacteria in your home.
Cork flooring is one of the most sustainable types of flooring. It is made of natural cork, and it has excellent thermal insulation properties that make it a good choice for homes with cold winters. Cork floors are also noise resistant, so they are perfect for those who need peace in their home environment.
Vinyl is a great option for those looking to save money on their floor. It also doesn’t need as much care as other types of floors, and it also comes in a variety of styles! Vinyl can be installed over existing surfaces such as tiles or wood, facilitating the replacement process.
Engineered wood floors are made with a combination of high-quality, engineered wood and synthetic material layered together to create an incredibly durable floor. These materials can be used on their own or together with each other for the best custom look. By installing this floor, you can get all the benefits along with some nice extras.
The floor you choose can significantly affect the appearance of the property. Don’t save your flooring just to save money – it may cost you a lot more lost profits along the way. The important thing is to look at what your potential tenants or buyers will expect, and make sure you meet those expectations while of course managing costs.
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When Panama reopens, property buyers seize major properties around Panama City. In the second quarter, Punta Pacifica Realty continued to see unprecedented sales and rental activities, particularly in luxury real estate offering comfortable styles.
According to our latest data, sales prices in the second quarter grew 5 to 7 percent in top buildings from the last quarter of 2020. It becomes harder to find motivated sellers and buyers begin to compete for major real estate. With the low prices of quarantine in the past, FOMO – fear of missing out – is becoming a reality, with lower-quality resale homes on the market and many of the city’s major developments selling out their best prefabricated units.
In the second quarter, we saw many of the same trends we identified in the first quarter continue as more countries around the world relaxed restrictions. We posted record sales in the first quarter and we surpassed those numbers in the second quarter. Although rental prices are still declining from their pre-coveted numbers, occupancy has grown significantly across the PPR portfolio of more than 300 properties, with occupancy levels steadily above 90 percent.
Again, we see the huge performance in the high-level developments, especially the few developments that offer an aquatic lifestyle. Sales on Ocean Reef, the man-made islands in the Gulf of Panama, are on fire. The first phase of Seascape, the charity community on the second island of Ocean Reef, is now completely exhausted. The second phase Seascape was recently released by advertising “family and friends” and nearly 70% sold, even before the official launch, with 11 sales in recent weeks.
Construction began on Seascape, which usually signals the next phase in prebuilding prices. But with such a limited supply available, we doubt that the remaining units will last very long.
Across Panama City, we have seen a focus on high-quality units with superior amenities. With many buyers worried about the changes in the global economy, this is a classic “flight to quality.” While many buildings in Panama City see little or no sales, the main buildings are very busy.
Marquises are still in high demand. During the second, two marquees in Seascape sold, for $ 1.9 million and $ 1.2 million, respectively. The last apartments on Waterfront 21 sold for close to $ 2 million. In Almar, the last units were also sold for $ 2 million and construction has begun, another sign that Panamanian real estate is in the middle of a healthy cycle.
Investors continue to focus on resort accommodations with the highest quality amenities. In the second quarter, PPR signed 14 sales contracts in the Yoo Panama at Balboa Avenue and 11 contracts in The Ocean Club, the waterfront tower that remains the icon of Panama City.
Wanders and Yoo, the much-discussed designer-centered downtown tower, continue to attract investor attention. The tower touches on many of the recent trends, including a holiday lifestyle, main amenities and main location. PPR’s sales team put together six new sales contracts for the Wanders and Yoo in the second quarter.
Similarly interested in Santa Maria, the gateway golf course community minutes from downtown. The House of Fendi House – another international designer name – and the Reserve were particularly popular, largely due to a drastic increase in buyers from Peru looking for a home with more political stability.
In the second half of the year, we expect continued investment flow from Peru and other regions experiencing political turmoil in South America as travel borders begin to relax. We also expect increased activity from Canada, which saw nearly zero trips during the pandemic. As active as it was through the first half of the year, we expect to see growth in interest as more markets open up to travel; we are still a long way from “normal”.
As we return to a fully open status, we will continue to follow many of the trends that propelled the Panamanian market ahead of the pandemic. Economists predict solid growth in Panama over the next two years, led by commercial, mining and infrastructure projects that have always made Panama a solid investment.
In addition, the international community is just beginning to absorb the recent changes to the housing programs in Panama, including a new form of “Golden Visa” launched last November. The new Visa Investor of Panama provides an easy way to housing to invest even just $ 300,000 in real estate.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
