kevin n asked:


Hi
Im doing a report on property investments and i need some information on how would you assess the past and future performances of property investments. any tip/pointers?

Karl

crzyaltego asked:


I want to weight the pros and cons of buying an investment property to rent and possibly live in, probably an older duplex. Any experiences or resources would be helpful.

Yolanda

Viper asked:


My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage.

Herman

bergler asked:


I want to short sale an investment property. the difference between what is owed, and actual value is signifigent, and will lead to bankruptcy.

if we recieve an offer from a potential buyer, can i counter it back to say subject to: bank not issuing 1099 for the difference?

FYI – the bank is WAMU.

Ellen

IC asked:


There is a palpable buzz in the air that is hard to miss. Yes, the word is out about the real estate investment opportunities in Romania! The focus of investors worldwide is now on Romania, the beautiful country in south-east Europe. Till this day Romania was famous for grandiose castles, its architectural finesse, medieval towns and its wildlife. Today, it is the turn of real estate investment opportunities to lure the attention of people worldwide. Based on experts view, Romania is the fast emerging as the top European destination for investing in real estate.

Wondering what makes Romania the ideal destination for investing in real estate? The current economical scenario in Romania hints about an explosion in prices in the near future. Also foreign direct investment from giants like Daewoo and Renault are pouring in faster. Yet, the prices of the real estate in Romania are at its infancy making this the ideal time for investing in real estate. Real estate analysts predict that investments ranging from tens to millions of EUR will be made in Romania in the near future. The real estate market of Romania has witnessed a steady growth of more than 25 percent in the past 4 years. If the expert estimations are correct, those who are making a real estate investment today can earn 400% profit in the coming ten years. Labor cost also is cheaper at Romania. These factors blend together to promise a plethora of property investment opportunities for the investors. Be it commercial or residential land, one can find the ideal business investment opportunities in Romania, sooner the better.

Romania, the land of beautiful castles and landscapes hosts a number of real estate properties. Thus, for the investors looking for investment opportunities there are plenty of lands, hotels, apartments and villas for sale in Romania. With the service offered at DreamInvestHome.com you can make the most profitable investment in the easier way. Making a foreign investment in real estate is always a better option to reap in good profits. Make the best use of the excellent service offered DreamInvestHome.com to find out the real estate investment opportunities in Romania and enjoy the best benefits.



Rosemary

Derek Both asked:


A recent study has revealed that six out of the top 10 most popular property investment destinations are located within Europe. It seems as though the likes of Spain, France, Cyprus and Italy are still firm favourites amongst investors when it comes to deciding where to spend their hard earned money.

The study also noticed that there has been an increase in the number of people under 40 who are getting into property investment. Traditionally the market has been dominated by retirees who want a holiday home or to move abroad after giving up work. Although they will always make up a large segment of the market, it is now no longer unusual for someone under the age of 40 to own property abroad.

The reason for the increase in the number of younger investors is because people are wising up to the benefits of property investment as they realise this is a great way of securing their future. The top five destinations are all well – known cities where people are pretty much guaranteed a return on their investment.

Buying property in up and coming holiday hot spots is a sure fire way to make a large amount of profit when it comes to property investment. Chances are that house prices are currently still reasonably priced in the area but once more and more people buy homes and holiday there, house prices are going to shoot up. This means that those who were lucky enough to get in there before the prices increased are going to make a significant amount of money out of their investment.

It is not hard to see why Europe is such a popular destination for those looking into property investment. The most popular choices such as Cyprus, Italy and Spain all enjoy warm climates throughout the year, are significantly cheaper than the UK and offer plenty to do in the form of entertainment. This is further fuelled by the fact that flights within Europe seem to be getting cheaper and cheaper as more budget airlines fight to compete with each other. This means that anyone with property abroad doesn’t have to spend an absolute fortune in air travel going back and forth.

Property investment can also make a great second income for those who don’t choose to live in the apartment, house or villa. Renting the property out is the perfect way of getting your foot on the property ladder in a foreign country. The money made from doing this may even pay off the costs of the entire property which means when it comes to selling it on the money you get for it will be entirely profit.



Alice

Nicolas Aguero asked:


For many investors, stock markets around the world have lost some of their appeal; the excess money in people’s coffers has been ploughing into international real estate at a rate never previously experienced. As a direct result of this intense interest in overseas property the demand for real estate in many locations such as Dubai and Spain is outstripping supply by up to 75%, generating a continuous growth on price levels.

As a result, it is increasingly common for investors to enter into off-plan property purchase. There are a number of benefits to off-plan purchases, but also some drawbacks in this method of buying real estate. In this next section we examine them for you to help you determine whether off plan property investment is the right choice for you.

The Benefits of Off-Plan Property Investment

If you buy off-plan when the villa or apartment is at the drawing board stage or initial stage of build, then you have the potential to make considerable input into the internal layout and finish of your chosen property. You can change around internal walls, select paint colours, tiles, carpets, kitchens, bathrooms etc, and custom design your property as though it were a self build without having to pay the extra cost for an architect that would normally be associated with this service.

By buying a property off-plan today you are securing the price of that property at today’s prices. By the time the property is completed it may very well have risen in value, thus making you a significant return on your investment immediately. Furthermore, if you can ‘just’ afford to buy at today’s prices, knowing that if you wait until more completed properties come on sale you may have missed the opportunity and as a result, been priced out of the market.

Developers usually require stage payments from their buyers throughout the build process. This means that you don’t have to make a large one off payment, you can save for each payment, allowing you to budget for each payment and effectively securing a high value asset for a very low initial capital outlay.

Some investors buy property off-plan, never intending to pay for it and certainly never intending to live in it! They take full advantage of the stage payments method of funding the build and never make the final payment which is usually the largest; rather they put the property back onto the market just as it is about to be completed and take out all the profit from the natural increase in value the property has achieved throughout the period it took to build it. Obviously, this is a rather risky approach as the property market does fluctuate downwards as well as upwards and there might not be a buyer waiting in the wings at just the right moment for the vendor.

Some developers use private investors to fund the build of holiday accommodation by offering them guaranteed rental yields on their completed property for a fixed period of time. This is a purely symbiotic relationship in theory as the developer has inward cash flow from the property investors to afford the build and also has a set number of properties he can let out via holiday and tour companies or even privately for a fixed period. The developer then takes any excess rental yield and thereby profits and the investor is guaranteed an income and also owns a property that is hopefully increasing in value over and above what it cost to buy in the first place – therefore, everyone’s happy!

The Downfalls of Off-Plan Property Investment

By buying a property from a developer off-plan you are taking a risk on that developer. What if he encounters financial difficulties during the build and never completes? What if he doesn’t build the properties to a high standard? You can help eliminate these situations by ensuring you see examples of previously completed projects, speaking to other customers who have been through the process with the developer already and asking about their experiences. Get guarantees of the builders financial status written into the contract where possible.

How secure will your investment be? You need to ensure you have a watertight contract drawn up and employ independent legal representation to protect your rights and money throughout the build process. If anything happens to the builder what do you actually own? Can you get your money back? What guarantees do you have? By buying off-plan and paying in installments it is usual that the title deeds are not drawn up in your name until completion, meaning that in theory throughout the build process the builder can re-mortgage the land on which your property will stand and until he repays the lender you cannot take legal ownership of your property.

You have no way of guaranteeing the finished quality of the property you’re buying. You need to ensure that you discuss your expectations with the builder and have them written into your contract. Furthermore, as mentioned, you should inspect previous examples of work. Also make sure you have some legally binding guarantees covering the structure of the building for five or ten years.

If you’re buying into an area where there is a large amount of development going on it will be very difficult to know what the area is going to look like when finished. Your particular developer may finish his properties, roads and shared areas to a high standard, however, what if nearby developers fail to do so, or if nearby developers are actually building aesthetic eyesores for example? You will have no idea who or even what your neighbours are going to be. They could be like minded people or your could end up living next to an industrial unit!

Off-plan property investment has one more down side and that is you will have to wait a long time to move into your dream home. You will be paying out for something for a long time before you actually benefit from it.

In case you need more information or have doubts on any of these issues, the specialised staff in January First Real Estate will be glad to answer all your questions, January First Real Estate, click here.



Theodore

Simona Coates asked:


Investing in property in Dubai is the smart and obvious choice, especially following on from the passing of Law Number 7 that allows for the ‘foreign freehold ownership of property’ in certain designated areas in Dubai.

However, there still remains an underlying factor which may seriously reduce the allure of Dubai: the rate at which inflation continues to grow and the cost of living ever on the increase.

An example of this inconsistency in inflation rates and sheer immense expense of cost of living in Dubai is apparent when one takes a look a the cost of privately educating a child – in the UK it’ll set you back upwards of GBP 46,000 annually but in Dubai you can almost double that figure which inadvertently makes it even more expensive to live in Dubai than in London! A fact which quite honestly baffles the mind.

When looked at in a positive light, inflation can be regarded as a sign that the economy in Dubai is strong enough and healthy enough to cope with price increases which may directly affect the property market, leaving many experts with the assumption that Dubai’s property sector will indeed be able to withstand a further boom in price increases.

The negative spin on inflation however, is that by reducing the amount of disposable income inhabitants of Dubai have monthly, proportionately, this affects the amount people can and will be able to afford to pay for accommodation and eroding the tax free living attraction of the emirate altogether.

With so much uncertainty and acute division of view in Dubai’s real estate sector, there is a definite clouding surrounding the property investment market in Dubai.

The question remains, is Dubai’s real estate market on the brink of a notable rise in fortunes or is Dubai precariously on the threshold of a monumental collapse?

On the one spectrum is the viewpoint that the passing of Law Number 7 by His Highness Sheikh Mohammad Bin Rashid Al Maktoum will result in an upsurge in Dubai’s property market profit margins.

On closer inspection of the desirability of Dubai’s property market, one can easily determine whether or not Dubai’s intrigue to international investors has faded, or not.

Dubai remains a tax free country, in which there is an overabundance of employment opportunities available to qualified international professionals.

Due to the fact that so many varying employment opportunities abound, salary packages and incentives on offer are usually very impressive, such that an expatriate can reside in Dubai and legitimately avoid having to pay the local government any personal taxes. This factor contributes to many internationals relocating to Dubai, as it remains a desirable place to live. Accordingly, this fact alone means that there is a constant demand for property in Dubai to buy and rent.

According to developers situated in Dubai, “There remains intense demand for completed property in Dubai which is why rental rate increases have been capped by the government. Previously the only way those moving to Dubai could find immediate housing solutions was to rent, and those investors with completed investment properties available for letting were increasing rents to astronomical heights which resulted in the government’s intervention.”

Dubai need to now develop and maintain a vigorous resale market, as those individuals that relocate to live and work in Dubai should have the ability to purchase property, or at least have the choice between renting and buying a completed home, which if implemented effectively should remove the need to cap rental rate increases thus bringing in more economic flow to the real estate market in Dubai.

As a direct result of the fact that many investors who bought off plan properties in Dubai are expected to take up residence in their completed units upon completion, there will be less demand for either rental accommodation or even resale property.

Could this then be the fuel behind the recent upsurge of developers now offering incredible incentives to those who agree to purchase unsold off plan properties?

There have been reports of some developers offering potential purchasers luxury cars and other incentives if they commit to purchasing new waves of off plan properties that can have up to a 3 year build period…is this because they are finding it hard to shift their stock, or is this because the desire to own property in Dubai has only increased in insurmountable proportions. Seems like only time will tell, but one thing is for sure: International interest Dubai has certainly NOT diminished.



Roberta

Kelly Price asked:


Slovenia is a popular overseas property investment destination and was recently voted one of the top destinations in the world and Ljubljana property investment has been one of the most popular destinations so lets look at it.

Ljubljana property investment is popular as its in the capital of Slovenia is an obvious place for overseas property investors to buy.

There is a shortage of high quality property in Ljubljana and demand simply outstrips supply.

There are good opportunities for both capital growth, as well as solid rental incomes and many investors are making 30% annually or more in capital gains.

Slovenia is one of the newest countries to join the European Economic Union (joining in 2004) and has the strongest economic growth rate of any of the new member states. This economic growth is centered on Ljubljana which produces around 25% of Slovenia’s entire total Gross Domestic Product.

Property in Ljubljana is seeing strong rises and these gains look set to continue for the foreseeable future.

The limited supply of housing is exacerbated by restrictions on land planning and building new property and are the two factors behind this growth.

Ljubljana has been compared to a smaller, more intimate and friendly version of Prague and there are many similarities in its appearance.

The city has a vibrant, lively, atmosphere and while typically Slovenian overseas tourists and investors have made it very cosmopolitan. The city skyline is dotted with church spires, quaint medieval buildings and beautiful baroque architecture.

In the first half of the 20th century, Ljubljana’s appearance which lives on this day was shaped by one man – Jože Ple

nik. Jože Ple

nik was a great architect and was also a resident of Ljubljana.

The cityscape was complemented by his followers as well as by creations of the “New Wave” of young architects which have helped give Ljubljana its appearance and charms anyone who visits the city.

The population of Ljubljana is around 260,000, making the city compact and easy to get around with an efficient transport network.

June to September is the high season for visitors, temperatures vary between warm and pleasant to hot and humid. Autumn is normally mild and the falling leaves; give the city a warm and intimate feel. Winter is usually cold and the snow brings a new wave of visitors who come to enjoy the capital but more importantly, use it is as a stopping off point to go to the mountain resorts and enjoy the skiing.

Ljubljana is a great base to use to explore the other delights Slovenia has to offer.

The Karst region, the beautiful Adriatic coast and city of Piran, the Julian Alps mountains, the wine-growing areas and many historic towns are all within approximately 2 hours by car to the capital. Finally, Ljubljana makes a great base to explore surrounding countries such as – Austria, Italy and Croatia.

With budget airlines increasing the number of flights into Slovenia as tourism booms access is easier and cheaper than ever before.

The tourist s are coming in increasing numbers but so to are the overseas property investors looking to buy Ljubljana property in ever increasing numbers.

For those who want to invest in Ljubljana property, there are good investment opportunities in the city center as well as the outlying areas and prices are very affordable in terms of the gains to be had.

The Slovenia property boom is still very much in its infancy and looks set to run for many years to come. In fact a recent TV program forecast that growth would be up to 280% over the next 10 years and many locations in Ljubljana have been exceeding 30% per annum.

With growth rates of up to 30% or even more in some locations its no wonder more investors than ever are investing in Ljubljana property and with low downside risk to it makes a great destination for investors seeking great capital growth and income from their investment.

If you are thinking of investing in Ljubljana property make sure you visit the city and look at its potential and you may be glad you did.



Rafael

Joey asked:


I deduct interest from my home right now but if I buy an investment property and rent it out, can I deduct the interest expense from my taxes?
vb, what do you mean I’m limited?

Marilyn