Tag Archives: Real Estate

Couple buying a property

3 Ways to Invest in Real Estate

Couple buying a propertyReal estate is one of the most popular ways to invest your hard-earned money. There are a lot of success stories in real estate, making it top of mind when people first think of getting into investing. If you’re interested in getting into this business, here are three ways to start your real estate investment journey.

Buying straight rental properties

Owning rentals is very attractive for many reasons. One, it gives you an additional income stream if you can find a cash-flowing property. Another reason is that options like section 8 real estate investment or investing minimize the risk of having a property just sit in the market.

What sets rentals apart from other ways of real estate investing is that it’s often – at least at first – a very involved way of investing, not very different from running a full-blown business. From sourcing properties to finding tenants and managing rentals, it’s a big undertaking. However, the challenges do come with rewards!

Buying a home in an up and coming market

The quintessential real estate success story is that of a family that bought a property just for family use and in a few decades found themselves in the middle of a rapidly growing area, increasing the value of their property multiple times.

This is the jackpot that many real estate investors want to find themselves in. Of course, the challenge is knowing what areas will grow in the future. If you have a keen sense for emerging communities, putting down a chunk of your resources into a new home to live in can pay off in the future.

The biggest difference is that this is largely a strategic play because the rewards come in the end, with no prospect of cash flowing in the immediate.

Living in an owned rental property

A third option that many fail to consider is buying a property with the plan of living in it and renting portions of it. It could be a duplex or a multi-family home, or even a single-family home where you rent other rooms out. This combines the rewards of a rental and homeownership.

The upside is that you get cash from the rentals, and you save on taxes when you eventually sell but you also compromise your privacy, and you get more responsibilities being a landlord as well.

Here are just three ways to enter the world of real estate investing. Ask yourself what fits your preferences the best and go for it!

Apartment complex

Multifamily Sales in Salt Lake City Amounted to More Than 1$B in 2017

Apartment complexThe Salt Lake Board of Realtors reported that sales of multifamily units in 2017 amounted to more than $1 billion, due to an increase in median sales prices.

Despite the increase, there were 4,500 units that exchanged possession in the previous year. This indicated that demand from buyers remained stable amid higher sales prices, up 11% to $225,000, according to the report.

Property Development Activity

Fitch Ratings expects home prices nationwide to increase 4.6% in 2018. It listed Utah’s housing markets among the top five states that will perform well this year. In Salt Lake City, home prices would increase by 3.2% from the current average prices of $360,000.

A reason for the projected increase involves the influx of several companies, which continue to set up business in the state.

For instance, many enterprises have flocked to the Provo/Orem region because of its high-tech industry. Workers from out of the state also moved to the region because of job prospects and higher salaries. While rising home prices normally elicit concerns of a bubble, experts say there should no reason to worry over a potential crash for now.

Housing Bubble?

Jim Wood of the University of Utah’s Kem C. Gardner Policy Institute said that the most number of sales occurred in Salt Lake City, West Jordan, and Sandy. He attributed the increase to a larger demand for affordable housing options. Wood believes that the likelihood of a real estate bubble remains low, as mortgage lending standards have become stricter in recent years.

For this reason, cash-strapped developers that remain undecided should consider launching new projects this year. Good thing, as bmfcap.com mentioned, The U.S. Department of Housing and Urban Development’s (HUD) multifamily loans will help you finance your next development.

An opportunity to make a profit awaits property developers since demand for multifamily units in Utah will likely continue to increase in the near future.

 

Are Real Estate Investors Better Than Individual Buyers?

Sold Home with the sign focused and house blurredIf you’ve ever faced the need to sell your property, you may have many questions: How long should you wait to pull the trigger on an offer? What’s the highest you can sell your house for? Should you sell your house for cash?

You might even receive offers both from individuals (e.g. your neighbors and relatives) or real estate investors like Klamen Real Estate. Can you rely on individual buyers more than brokers when selling your St. Louis house for cash?

Here are some advantages of selling your house to real estate investors:

Reliability

Imagine if someone makes a great offer to buy your house. After the verbal and written handshake, the would-be-buyer applies for a cash home loan. A week later, the buyer receives a letter from the bank, saying the loan request was rejected.

In this case, it’s best to sell it to an investor. Unless the person who made an offer has the cash on hand to buy the property, it can take weeks for the transaction to be resolved. Even then, it’s not guaranteed to succeed. Time would be lost, and you would have to go back to the drawing board and wait for offers again. This is not the ideal place to be for those who need cash urgently.

Documentation

With brokers, you can have some more peace of mind. If someone makes an offer to flip your St. Louis property, you can always ask them for a license. This way, you can find out whether they are authorized to practice in the state of Missouri and protect yourself from any scam.

Real estate investors are trained to appraise properties and make the best offers for your house. If you’re in need of quick cash, you can inform them that you’re receiving cash offers by sending them an e-mail, filling out a web form, or even by calling them.

Cavite Home Prices Around 30% Cheaper Than City Rates

Brand New Luxury HomeAlmost every Filipino will consider the price of a home as their top reason, whether or not to purchase the property, with location likely being the second factor.

In Cavite, home buyers may save around 30% in costs compared to acquiring property in cities, according to Pronove Tai International Property Consultants. Cavite Properties note that the province’s proximity to Metro Manila makes it even more attractive not just for buyers, but also for developers and investors.

Transport Infrastructure

Pronove Tai CEO Monique Pronove said that the emergence of many transport links to Metro Manila allowed easier access to different cities. For instance, the Manila-Cavite Expressway connects the South Super Highway to Daang Hari, which lets residents travel to Muntinlupa or Las Piñas.

These transportation links led to the construction of more township developments. As a result, land values in Cavite have increased by 300% over the past ten years, according to Pronove Tai. This bodes well for investors that made a bet on the region’s property market.

Even as land prices increased, more buyers can still find it cheaper to acquire a spacious home than a small condominium unit in the city, Pronove said.

Competitive Pricing

The different prices offered by developers can be a confusing chore. If you have been considering a house and lot in Lancaster New City, a review online helps you reach a decision.

Enrique Soriano, executive director at Wong + Bernstein Advisory Group, said that house-and-lot packages still account for the biggest share of transactions in the residential property market with an almost 76% share.

For this reason, you may expect to see competitive prices from developers as they try to outsmart each other in luring clients.

While it may be cheaper to buy a house in Cavite, you need to consider all options and review prices before signing along the dotted line in any contract.