guidobutcher asked:


I would like to sell an investment property. There is no outstanding loan on the property. I also have a living trust.
Can I sell the property but have it financed via my living trust ?
Or do I need to put the property in my trust before selling and financing ?

John

Ivanovich Cuxev asked:


Smart investors know that overseas property investments can yield 25-100 % returns if properly managed. One intelligent measurement to lower risks is to lock in the the value of the investment property with the help of third parties so that if the value goes down you will be able to sell the property to them and not loose a penny.

An example would be buying a international property, if you pay 80K and the market value falls to 50K, having locked it’s value through a third party you can still sell it for the original 80K, now if on the other hand the property appraises at a value much higher than what it was originally purchased for, all you loose is a small lock in payment but made a substantial profit.

This is a different way of investing compared to other markets, as you may be able to deduct the advantage is that you are able to lock in “the risk” at a set level in exchange for a small payment which represents the maximum loss you are willing to take. This way overseas property investors have a high leverage when investing in foreign real estate.

The best way to invest in foreign real estate listings is to select an established or “currently in development” market, as well as making sure that the laws in such places are favorable to foreign investors. Good investment markets which fulfill these conditions are Dubai and Cyprus.

Cyprus property can be obtained after completing a “permission to purchase” application with the Council of Ministers. This is a step every foreign investor must complete, in order to purchase property in Cyprus which is not very restrictive. An investor can purchase up to four thousand square meters of land and an additional house or apartment.

Similarly, buying Dubai property offers many advantages due to the fact that real estate prices keep increasing because of the high demand these properties have. The demand increased radically back in 2002 when the crown Prince made an announcement which allowed foreign investors to purchase property. Due to local tax and business advantages this particular market blossomed and it’s now a great place to develop any business idea.

Real estate investments in foreign countries offer great ROI “if and only if” the investor verifies local laws pertaining to properties and business. Always remember to diversify your investments, even if you are investing in a relatively stable market.



Joseph

ZASH asked:


 

Dubai- “PEARL OF THE GULF” – is one of the most forward thinking and open places in the entire Middle East. Dubai Investment property sector hugely encourages foreign investors and immigrants. With its lavish developments and sounds ready for anyone to indulge them in, Dubai investment property is certainly looking out for provides a vibrant cosmopolitan environment that fosters growth and appalling capital gains.

The current population of Dubai is 1.5 million (2007) and tourism figures is 5 million. There is no corporate tax; no income tax; no capital gains tax; no foreign exchange controls, trade barriers or quotas; and no restriction on capital repatriation. Consequently it is estimated that by 2012, the population will grow to 12 million and the number of tourists visiting Dubai will be in excess of 5 million. Modest predictions for capital growth are 15% per annum, but we have seen value appreciations in excess of this. Residential yields are coming in at 15% per year also, while commercial rental income is in excess of 20%. So underlying data is sound enough to produce high returns from property investment in Dubai which is safe place for investment; having a good trend of capital gains at the time.

Dubai looks set to increase in both financial clout and influence in coming years, and the forward-thinking nature of the emirate is testament to the success it has. With many specific free zones already set up for Dubai property investment Dubai Internet City and Dubai Media City, Emirates Hill, Sports City, for example, and more planned, things are certainly looking up. Many major worldwide companies have headquarters in the emirate, including Microsoft and IBM, this alone should convince anyone that the region has some solid economic ground to stand on. Dubai property investment is big business in the region, and prices are currently surprisingly low. Now is the time to invest in property in Dubai and those that can afford it really should look into it, Dubai is essentially a purpose-built playground for the rich, and home to the fastest growing city in the world.

More and more people are adding Dubai investment properties to their property portfolios and historically these purchases have provided excellent returns for many people in many countries. This interest in Dubai property investment has been partly fuelled in recent years by capital growth, high residential yield, excess in commercial rental income, and the increasing scope and affordability of international travel. Just invest and then sit back and watch the value of your investment grow!



Larry

wilsonkeith asked:


I am a first time buyer and want to buy an investment property because a primary residence in my region is too expensive. Can I get a 100% loan, if so how?

Matthew

Calvin N asked:


I am a college student looking for an internship or a career in the property investment business, and I want to know if there are any businesses in this area, or individual investors or flippers that need a hand. Thanks.

Judy

Brad F asked:


I couldn’t find an option to reply to the answer spock provided, which was great by the way. If you see this, it is an investment property, and I was wondering if I could take depreciation, in addition to the repairs, taxes, home owners insurance, etc, and still claim the standard deduction? I am a single claiming only myself on my taxes as well as being a full time student and making ~28k this year.

Floyd

Clint Jhonson asked:


The Cyprus real estate market represents quite outstanding potential for foreign purchasers; these purchasers may wish to invest their money and time in an apartment, villa or other real estate in Cyprus after seeing a wide range of real estate possibilities. The real estate market of this country is particularly strong and Cyprus is a desirable investment location for plenty of reasons. There are some main characteristics that transform this market into a well defined one that can be very appealing to foreign investors. One of the main reasons is that the market grows on a constant basis; actually, the Cypriot market is one of the fastest growing environments when it comes to the development of real estate businesses. The annual average may reach almost 20% and almost every property price is still lower compared to other European countries.

Another aspect that may be very convincing for foreign investors is the sharp increase that has characterized the golf properties that are available on the current market; the tax rate is lower, thus transforming the entire country into a genuine attraction for almost every investor who is interested in buying an apartment, villa or other real estate in this country. One should not forget about the weather either because every resident of this country can enjoy 340 days of real sunshine a year. Cyprus is an enjoyable location and this country is quite comfortable too regardless of your country of origin. You can expect high standards when it comes to living in a country with good facilities that can even include top class golf courses.

You can live in this country at a low cost and your life will be improved by quality features; therefore, you may choose to make a Cyprus property investment because this investment will prove to be a highly beneficial one. This country even has a low crime rate and its friendly inhabitants are likely to transform the country into quite a desirable place to live or visit. The medical facilities are excellent and if you are planning to develop your own career, you ought to be aware that there are plenty of business opportunities in this country. These business advantages may actually transform the country into a more desirable destination or residence. Every investor will discover a ready market that will provide him with all the necessary opportunities; well administered procedures are likely to secure your future investment when purchasing an apartment, villa or other real estate. Buying property is this country is actually a safe decision for the future.

If you are looking for genuine reasons for making a Cyprus property investment, you may consider the following points because they are likely to be helpful when it comes to understanding the current real estate market that can be found in this country. First, investors will discover that prices are generally lower than other European prices; even the living costs are relatively lower when compared to other countries and the quality of life itself is thus improved. The good facilities are worth mentioning too because the national economy is mainly characterized by stability and robustness. All these features are underlined by the constant and favorable evaluations that are coming from almost every European institution. Even the International Monetary Fund underlines the economic and financial stability of this country.

Cyprus boasts an efficient land registry and this system comes along with well administered and straightforward procedures that are designed to encourage every potential foreign investor. Property purchase has thus been transformed into a safe option that any person may consider for his/her future life experience. Even the legal system encourages all potential investments that are related to the real estate market; investors will also take advantage of some fiscal incentives and they can also enjoy a lower level of taxation.

Special tax incentives are offered by the Cypriot government in order to encourage the real estate field; the country also has one of the fastest growing economies and this aspect may be very appealing to every real estate investor. The strategic location of the country together with the unrestricted access makes this land the perfect location for your future real estate businesses.



Ann

NoSoup4u asked:


I want to make an offer on an unlisted property, for personal investment (fixer upper). I am a newly licensed realtor and want to make sure I don’t violate any ethics.

Audrey

Kelly Price asked:


If you are interested in international property investment we are going to look at a great destination here which has been voted one of the best property investments in the world, with average forecast growth of nearly 300% over the next 10 years and the country is Slovenia. Here we will look at why Slovenia property investment is hot.

Slovenia is a country that is attracting both European and North American real estate investors and interest is at an all time high.

Slovenia Location

Many people have not heard of Slovenia but it is a small recent member of the European Community and has the highest GDP of any new member and is situated right at the heart of Europe bordering: Austria, Hungary, Croatia and Italy.

Recent membership of the EU has seen billions of dollars invested in the country from the European community and private investors.

The Result?

Disposable incomes are higher than ever before, this has led to an increased demand for high quality housing and demand is simply out stripping supply.

For example, property in Ljubljana (the capital) has been increasing by30% in many areas – but the growth is not just restricted to the capital. The second city of Maribor and the coastal resort of Piran have also seen strong rises.

Future prospects

The future prospects for growth in Slovenia property prices are good, not only does the country have a solid growth internally, it is actively promoting its tourist industry and this means a huge influx on people wanting high quality accommodation to rent and looking for holiday homes.

Slovenia is a small, beautiful country and has much to enjoy.

It is a country of soaring mountain peaks, dense alpine forests, valleys dotted with vineyards, mighty rivers and even a small unspoilt section of Adriatic coastline.

Skiing is popular and property located in or close to these resorts are popular choices – great areas to buy in are:

Around the towns of Bled, Bohinj, Maribor and Kranjska Gora. Other areas set to rise in popularity are, the towns around the beautiful Soca Valley and the coastal region around Piran.

Property is still keenly priced, with good upside potential and you can not only benefit from great capital gains but also solid rental incomes and there are Slovenia properties to suit every budget.

Buying is straightforward and the local laws are designed to protect both buyers and sellers and you can arrange local finance for the property which is secured on the property in Slovenia, not your principle place of residence.

There are plenty of Slovenia estate agents to help you find your investment property and many cater specifically for international investors.

So, if you are interested in international property investment, consider Slovenia and you may be glad you did.



Charlie

Andrew Stratton asked:


One of the first things you will need to do in order to establish your property investment business is to obtain your first property investment loan. While most people have experience with their own residential property loans, obtaining an investment property loan can be a bit different as these types of loans come with a few extra challenges.

The first challenge is often that the amount of money you are looking to borrow is likely higher in an investment property rather than your residential property. The second concern for to consider is not only your personal debt ratio but also the debt coverage ratio as well.

While commercial and residential loans are essentially the same animals, they have separate factors used to determine your eligibility to close on the loan. If you take a bit of time to learn the other factors that commercial lenders take into account, you will be well on you way to obtaining your first property investment loan.

Part of doing your homework, prior to talking to a lender, is to understand that there are three common ratios which commercial lenders all use to judge the risk of an investment. If you are educated about these ratios you can come to the table with your lender in a better position because you are better prepared. Your preparation will make them more likely to do business with you.

The first consideration your lender will want to look at is the loan-to-value ratio (LTV). The LTV is the same as you might associate with residential lending. It is simply the total debt on the property in comparison with the property’s current market value. If you own a home which has a current market value at $100,000 and a mortgage of $80,000, then your LTV would be 80%.

While residential lenders are okay with lending at 80% LTV or higher, most commercial lenders use a standard of 75% LTV as the least they will generally lend on.

The second consideration will be your project’s debt coverage ratio (DCR). The DCR tells the lender how much income the property is producing when compared with the cost of the total debt on the property. The DCR is calculated by taking your net operating income and dividing it by the total of all of the mortgage debt on the property.

Most lenders require a DCR of at least 1.2 in order to lend on an investment property. A DCR below 1.2 indicates to the lender that the property is probably going to lose money.

The third consideration will be your own debt ratio. If you own a small company, you will be required to submit a personal financial statement as a guarantee on the potential loan. This debt ratio will be your own personal monthly housing expenses divided by your own personal monthly gross income. Your debt ratio shows the lender how you manage your personal finances and if you can afford to guarantee the investment property loan. Most commercial lenders will not lend to you if your personal debt ratio is above 25%.

While your lender will help you through the process of obtaining funding, the more you prepare for the process the better. By being prepared, both you and your lender will have a much less stressful time funding your project.



Wilma