| Investment Real Estate Attributes Why investment properties? Security of investment; historically property serves as a hedge against inflation. Barring speculative cycles, property prices and yields have a tendency to even out over the long term. To prevent the ills of speculation, many countries have adopted anti speculative measures and incentive to curb such excesses. It range from a 50% discount on capital gains tax after a one year holding period or progressive percentage reduction of taxable capital gains over the number of years held. Legislative restriction on the purchase of certain classes of properties are sometimes imposes on foreign nationals or on the secondary market as alternative controls. Durability and lasting value; banks are willing to lend money on properties, than on most other assets as it has lasting value; they will grant loans to finance such purchases on its market value or purchase price. Financial assets such as equity on the other hand, are sold many times above its net asset value. Capitalisation of those stocks is base on conventional stock market indicators such as PE (price earnings) ratio or NPVs (Net Present Value of future cash flows). Such valuation bases are dependent upon earnings and cash flows. Assets of those companies if taken individually will sell for much lesser than the value of the stock; it is sold on a going concern basis. The same cannot be said for properties as they are sold at market value. Market forces of supply and demand will ensure compliance. Well maintained properties can give their owners continuing economic benefits over many years with no reduction in its utility. It can be rented or the owners can stay in them if they chose. Control over assets; unlike shares and unit trust where the shareholders leaves management of the company to professionals and fund managers, owners of properties have full control over their assets and they can apply these assets achieve maximum benefit, be it tax or otherwise. Flexibility; there are many venues an owner can derive benefits from property, it can be subdivide for land/shoplot for rental/sale or it can be developed. _____________________________________________________ Learn the basics of finding the right property, be it a home or for investment purposes. (The basic rules applies, irrespective of which country you may be in or intending to purchase) Are you willing to even make one wrong decision? Just look at the subject heads from this ebook and consider all the valuable topic areas your new ebook will cover! And ask yourself if you understand how to save money or make the right decision in each area. WHY DO YOU WANT A HOUSE? THE RIGHT REASONS THE WRONG REASONS FINDING THE RIGHT HOUSE LET THE SEARCH BEGIN LOOKS AREN’T EVERYTHING FIXER-UPPERS NEW VERSUS PRE-OWNED PERMANENT RESIDENCE INVESTMENT PROPERTIES THE IDEAL NEIGHBORHOOD NEIGHBORS NEARBY AMENITIES HUMAN NATURE APPLIES MORTGAGE ISN’T THE ONLY COST HOW IS YOUR CREDIT? PRE-APPROVAL VERSUS PRE-QUALIFICATION DOWN PAYMENTS FIXED RATE LOANS ADJUSTABLE RATE LOANS LENGTH OF TERMS OTHER MORTGAGE PRODUCTS FINDING THE RIGHT HOUSE REALTORS DO IT YOURSELF PUTTING IN THE BID GET AN INSPECTION! GOING TO CLOSING FINAL INSPECTION DOCUMENTS, DOCUMENTS, DOCUMENTS! THE KEYS ARE YOURS RENT VERSUS MORTGAGE DON’T TRUST THE BANK ACQUIRING FINANCING |
|||