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How to Invest in Real Estate – Top 10 Tips

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HOW TO INVEST IN REAL ESTATE

Real estate refers to property and includes land as well as buildings. It could be residential property or commercial property. A home where you reside is real estate and you have invested in it because you want to stay in it. You can also buy real estate as an investment. Just like you invest money to buy stocks, bonds, and other assets hoping that it would appreciate in value, you can also invest money in real estate as an asset. When you buy a piece of land or a building, you can look forward to its market value increasing over time. You can sell it to earn a profit on it. Real estate is thus an option for you to invest money and get returns on your investment.

To understand how real estate can be an asset to help you earn returns, let us look at the different ways you can earn money from real estate.

  • You can buy property and hold it for a few years and wait for its market value to increase. Once the value of the property has increased and reaches a price that you find satisfactory, you can sell it for a profit.
  • Property can earn you regular income and this is an important reason why you should consider investing in real estate. When you buy a home or an office building, you can give it on rental and earn rental income. This would be a regular income that you get every month.
  • There is ancillary income you can earn from real estate apart from the monthly rental. This can include providing housekeeping and maintenance service, installing vending machines, providing laundry facilities and providing furniture on rent. This would be income other than your regular rental income.

Having understood what real estate is and how you could earn from it, the next thing is to understand how to invest. The following are ten tips that can help you plan your investments in real estate in a proper way and ensure you buy property that would give you good returns on investment.

1) Understand the market

Never invest in something you know nothing about. Understand what real estate is and know the real estate market. Do your own research to understand how the real estate market works. Understand the trends in the real estate market to find out if the market is doing well or not. Also, find out what are the chances of the market prices going up in the future. You can base your research on reports available in public domain or you could even purchase reports prepared by professional organizations. The money you spend would be worth it.

2) Decide your goals

When you invest money, you need to have your investment goals worked out in advance. The goals would be the answers to the question of why you are investing in real estate. You need to decide if you are investing for value, which means you would hold the property for a long term and then when its value appreciates you would sell it. You could also be investing to earn regular income, in which case you need to invest in properties that would yield monthly rental. You could also decide if you want to invest all your money in one property or instead consider investing in multiple properties of lesser value.

Above all, you need to decide if you want to invest to earn money for your retirement or to fund your children’s education or any other reason. This will help you work out the time-frame of your investment. If you are investing to earn money for retirement, then you can hold on to the property for 30 years or more. If it is for a short-term goal like sending your children to college, you may need to sell the property in 10 or 15 years. You need to plan your investment keeping these goals in mind.

3) Location is the key

The most important aspect you need to keep in mind when you buy property is the location. It is the location of the property that determines its sale price. It is the location that will decide whether the property would appreciate or not. If you do not buy a property in the right location, you can end up with a dud. Since you would be investing a lot of money in real estate, make sure you research the location to find out if it is in a good neighborhood. This would ensure the property would earn you good returns.

4) Plan your purchase and use the 1% rule

Once you decide where to buy a property, you need to plan your purchase. You need to decide if you would be buying the property by paying the entire amount or whether you would buy it on a mortgage. In fact, it may be advantageous to go for a mortgage. You would need to have a down payment for the property, which would usually be 15-20% of the overall price. You then can make monthly payments for the mortgage for a period of anywhere from 10-30 years. You can then rent out the property and allow your tenant to pay the mortgage. You need to ensure that the rental would be more than the mortgage amount.

A rule that would be of help for you here is the 1% rule. The rent that you get from a property every month should be at least 1% of the overall value of the property. In such a situation, the rental amount will be more than or at least equal to the mortgage. You can thus use the rent income to pay off the mortgage. Once the mortgage is paid off, the property will be yours and you can sell it when its value appreciates.

5) Use the services of an attorney

Real estate sale is not as easy as it looks. There are a number of issues that could crop up at the time of closing the deal. Primarily, you need to ensure that the title of the property is with the seller. If you do not check this properly, then you could end up in serious trouble and litigation once the deal is closed. You also need to understand if there are any liabilities in the name of the property or there is a lien on the property. You can find this out yourself, but it involves a lot of work. If you do not have the time to do such due diligence or don’t want to take the risk, you can hire a real estate attorney to do it for you.

The attorney who specializes in real estate work will protect your interests and ensure that all legal formalities for the sale are taken care of. He will advise you on the legal aspects related to the sale and can even help in negotiating the deal. If you were dealing with commercial property, you would be well advised to use the services of an attorney. The attorney would also vet the contract and ensure the terms are clear. The attorney would also ensure all documentation for the transaction is done in the right way.

6) Consider flipping

A strategy that is used to make money in the real estate sector is flipping. This involves buying old buildings for a discounted rate and then renovating or refurbishing it. You then sell the renovated house for a higher price and make money. This is a good way to earn profits. However, to do this you need to find the right property that you can buy at a low rate and sell at a high rate after refurbishing. You also need to invest money on renovation. A risk here is that if the market value of the property drops, then you are stuck with it.

7) Start small

Before you get into investing money into buying properties to give out on rental, you can consider starting in a small way. You can start out by renting a room in your house. You can even consider renting a room to tourists by signing up with Airbnb or other such portals. This would help you earn money and you get an idea of how the business works. Once you are comfortable with this, you can then think of buying a house to rent out.

8) Consider REITs

There is an interesting option for those who want to invest in real estate, but do not want the hassles of owning a property and going through the process of the transaction. This is also suitable for those who do not have sufficient money to buy property but are still interested to be a part of the real estate investment success story. REITs or Real Estate Investment Trusts are an investment option available for such people. A REIT is a trust owned by a company. You can invest money in the REIT just as you would invest in mutual funds. You can invest any amount of your choice and in return are allotted shares/units.

The REIT would be listed on the stock market and its shares are traded. You can sell the shares when its value appreciates. REITs also share their profits in the form of dividends. The money collected from investors is used to invest in properties. Investing in a REIT allows you the opportunity of earning regular dividend income. Like any stock market investment, it involves risk. The main downside is that you have no control over how your investment is being used by the REIT.

9) Work with a real estate agent

If you are not comfortable with the idea of doing research on properties, identifying a property, and then purchasing it; you can take the help of a real estate agent. The job of a real estate agent is to help people buy or sell properties. A real estate agent would help you identify a property that meets your requirements. They would have contacts in the industry and would have an extensive database of properties available for sale. They can help you find a property in the location of your choice and to suit your budget. They can also help you negotiate with the owner. They provide their services until the deal is closed. In exchange for their services, they charge a commission of the sale value. When you sell a property, you can claim the real estate commission paid as a deduction on your taxes.

10) Know the tax implications

There are tax implications when you invest in real estate. When you buy real estate, you are investing capital or money in it. When you sell it and make a profit or gains, it is considered as capital gains. You would need to pay tax on it. Tax laws encourage long-term investments and hence there are two types of taxes, short-term capital gains tax and long term capital gains tax. Short-term capital gains tax would be applicable if you sell your property in a short period (within a year usually). The gains you make are treated as income and clubbed with your income from other sources and you need to pay tax on it. Short-term capital gains would result in having to pay more taxes. If you are planning to use flipping as a strategy, you need to keep this in mind.

Long term capital gains, on the other hand, is when you hold the property for a long duration. The gains you make from it would be taxable. The tax slabs for this would differ from your regular income tax brackets. In some places, it is charged as a straight percentage of your profits. You need to know the current tax laws applicable. When you invest in real estate, an advantage is that you can write off the depreciation on the property and claim it as a deduction from your income. You can thus earn tax benefits. Understand the laws or consult a tax expert to know how it works.

You can follow these tips to invest wisely in real estate and earn money on your investment.

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Guest Posting

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Guest Posting 1

The internet has set up brands at every corner of the street and getting people to visit yours is a mix of skill and art. The attempts to layout customer roadmaps to your brand which aren’t abandoned are not new and the struggles are the same as before. In fact, the struggle to have your brand heard has piled up as competition keeps emerging and viewer attention span keeps getting fragmented. This has led to a surge in brands using conventional advertisements to highly compress their message to the audience.

This is not the best gameplan to bet on. Ads are perceived by many as intrusive, insincere and housing an ulterior motive. The audience is bombarded with ads from every angle and making it shorter does not really help. Most people don’t react the same way to guest posting.

A guest post is a piece of brand journalism which lives on a publisher’s website. Sponsored posts are an advertorial piece of long-form writing that is created to be highly engaging. They avoid the intrusive and abrupt conventional-approach of ads and indulge in a more respectful and subtle modern-approach for recommending your services or products.

Choosing the right platforms to publish your guest post is crucial as the platform is seen as your partner and representative. Your chosen platform must balance between writing a blog post and a traditional advertisement, stray away from being intrusive and stick with being subtle and respectful. At Global Banking and Finance (GBAF), we offer the opportunity to bank on our decade-long experience and expertise in writing balanced content like this.

How Can Guest Posts on GBAF Help You?

Constantly investing time and effort into writing and publishing on your blog is great for fostering and strengthening your already existing audience relationship but this doesn’t help you reach a new audience.

Guest posting opportunities on our platform gives you access to an untapped audience base. This is a significant advantage in two ways:

  • Familiarity: We have built our audience through our authentic, thought-provoking and storytelling writing nature. Our audience is familiar and receptive to this writing style. When we adapt your content in the same format, it allows your content to have better reception compared to traditional ads. Also, your content will adapt to the environment of content which makes it feel natural and less abrupt or intrusive.
  • Trust: When a consumer learns about your brand through someone they trust (someone like a renowned brand, friend, some industry authority, etc), they are more likely to trust you, too. Our audience’s trust means a chance for your brand’s voice to be heard. It also means having customers who have completed their journey of brand choice. When they choose you, it will be an additional choice of transition from our platform rather than a new choice of approaching you. They only have to go half-way.

With amplified brand reach and redefined trust, your brand visibility and credibility will be boosted. We also help you boost visibility by leveraging our social media channels which currently have 135k followers and keep growing every day.

Another major area of impact when doing guest posts with GBAF is the focus, delivery and expertise of writing. The audience members will engage with your content much more than they do with your traditional ads. This will increase the chances of convincing the customers who doubt, skepticize and speculate becoming customers of your brand from afar. Writing to deliver your promotion with value-driven content also allows you to plug in a recommendation at a crucial point of the problem with your brand as the solution.

Lastly, value-driven content avoids the intrusive BUY THIS! style of writing. Here, the focus is on communicating your knowledge and therefore allows you to establish yourself as a thought-leader in your niche.

All of these combined benefits act as a catalyst to boost your brand reach, funnel attention to your brand, gain a competitive advantage and knock down all other challenges presented in separating yourself from your competition.

Final Thoughts

Brand adoption is slow. Abandoning an old familiar brand route for a new one is difficult. People rarely reach out to brands and they sprint the other way if they see brands reach out to them through conventional and dull ads. In such a deadlock scenario guest posts can provide the perfect strategy to bet on.

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Why Guest Posting is Your Best Bet

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Why Guest Posting is Your Best Bet 2

In a scenario where new businesses are popping up everyday, one of the major challenges brands face is that of devising an organic and effective way to get the attention of their target audience. And one of the first solutions that comes to mind is the internet and consecutively, digital marketing. Even though its all-pervasive nature has made it both super-easy to reach people across the globe, the internet also comes with its own set of challenges. In this article, we will discuss the tough-to-crack parts of digital marketing, things that almost every brand representative or marketing executive has to face in the present date.

The oversimplification of digital communication has deceived many brands into believing that it’s the only way to reach their audience. However, the reality is hardly so. Today, there are more platforms and media formats than there have ever been before and newer ones keep emerging everyday. As a result, the netizens have developed a rapidly decreasing attention span. As a result, brands are wrestling to fit their message into as tiny a space as possible in what can only be called conventional methods of advertising.

For many brands, digital marketing proves to be an ordeal that takes years to crack, all the while draining the brand’s potential for more business and/or larger reach. It is worth noting that one of the major challenges that most businesses face is that of people avoiding ads altogether; no matter how good your ad is, chances are that people don’t want to see it, resulting in zero engagement. The second and bigger challenge is that short messages don’t convert those who are unaware of your brand, to brand loyalists. Instead, these ads are likely to affect only those who are already considering buying into what your brand is offering, which might be a small share.

This is where Global Banking & Finance Review (GBAF) comes in. We offer you the opportunity to overcome both the challenges (and more) in one go through our guest post services.

Guest Posts Have An Edge Over Normative Advertisements

Guest posts are advertorial pieces of long-form writing, created with an aim to engage the audience by taking away the impression of normative ads. How? Sponsored posting articles are so designed that they address the audience’s demands or queries, and also offer your brand as a solution instead of point-blank marketing. Consequently, this makes the audience spend a longer time engaging with your brand than they would do with, say, a pop-up ad. Through a guest blog post, your brand has the space to engage in a fair exchange because the article delivers value to your audience rather than being a conventional sales-driven advertisement.

To sum it up, sponsored posts fall right on the sweet spot between a blog post and a traditional advertisement on the spectrum of advertising.

Here’s Why You Should Run Guest Posts on GBAF

At GBAF, our team understands the importance of the environment in which your brand is introduced to an audience, something that leaves a lasting impact on their minds. It goes without saying that this very impression will influence and drive their future decisions on whether they want to engage with your brand and buy what you’re selling. Hence, it is our staff that is usually responsible for writing the posts that go up for your brand on our website. This allows for the sponsored post to merge in seamlessly with the existing content in our website instead of sticking out like a sore thumb. The aim in doing so is to create these posts in a way that does not distract or seem abrupt as guest posts are meant to be adaptive to an existing environment. So, even though it is essentially promoting your brand, a sponsored post is more of a brand journalism piece than an ad.

On our platform, we understand the importance readers attach to authenticity and value. This also allows GBAF to have a firm grip on introducing your brand effectively while simultaneously catering to the audience’s needs. Our team works around the clock to gain our audience’s trust by continually delivering authentic and value-driven content to our readers for more than a decade. When you partner with us, that resource pool is easy to tp into. When a consumer learns about your brand through a reliable source (for instance, someone like a renowned brand, friend, some industry authority, etc), they are more likely to trust you, too.

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Why You Need to Take Guest Posting Seriously

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Why You Need to Take Guest Posting Seriously 3

When customers are largely in control of marketing conversations, traditional advertisement has lost its touch. How you educate your prospects and out-educate your competitors now win the battle and generate leads.

If you’re the spokesperson of a brand or if it is your job to tell a story that your customers care about, you know how important it is to be generous, to share your ideas on a platform that promotes storytelling, and to position your brand as the most trusted partner for your customers.

The challenge with quick, easy micro-copy is that it fails to make an impact. It’s like a quick-fix that we try to use in everything we do. However, quick-fixes don’t heal a burning pain-point. A thoughtful, easy-to-read, user-friendly guide does.

At Global Banking & Finance Review (GBAF), we help you help your customers. Here’s how.

Guest Posting: How it Works

Guest posting is the art of telling your story to your audience without shoving it down their throats. It’s not an advertisement, but a thought-leadership content piece that educates & promotes your brand to your target audience without interrupting them.

  • Our editorial team works your content piece to present your brand on our website
  • The sponsored articles adhere to the context, the tone, the voice of your brand and represent it in the way you’d like to portray to your audience
  • The content piece is lucidly written and only does one job, i.e. educating your audience
  • The piece is long-form of content that allows your target audience to engage with your brand longer (much more than an advertisement)
  • It doesn’t distract, interrupt, or intrude the audience
  • Sponsored posts are designed and articulated to solve the audience’s pain-point and showcase your brand as a solution-provider

Why Should You Run Guest Posts on GBAF?

GBAF is a platform that garners a community of over 135,000. Here are four reasons for which you should run guest posts on GBAF:

  1. We help you increase the engagement with your audience: We don’t depend on surveys to understand what your target audience wants. For the last ten years, we have been serving various kinds of readers. And we know them personally. Thus, we know how to place your content to increase engagement.
  2. We put your audience ahead of the marketing funnel: When you run an ad, you start from scratch. And as a result, the first step is always to start with the beginning of the marketing funnel. When you publish a guest post on our platform, your target audience already begins to trust you since we’ve put years of work in building the community.
  3. We help you generate leads: An ad is interruptive. When you submit a guest post on GBAF, it teaches instead. And directs the audience to take action. As a result, you generate more leads. In this era of marketing, the brand that educates better, profits more.
  4. We offer you cost-effective solutions: When you run sponsored articles on GBAF, you’re in charge of your budget. You decide how much you’d like to spend per month. And we support you with cost-effective solutions backed up with the results so that you can calculate your ROI upfront.

How to Submit a Guest Post on GBAF

  • Check categories:
  • B2B: CSR, Green Tech, AI & Big Data, Ongoing Training for Employees, Manufacturing
  • B2C: Travel Destinations, Trends on Buying a Home, Working Remotely, Electronics
  • Follow guidelines:
  • Format: Word format
  • Send at: [email protected] (or use this page to submit a guest post)
  • Length: 750 – 1000 words
  • Image: We need an image of the author (specifications: width – 800 px. & heigh – 600 px.) with original credits
  • Additional requirements:
  • Author Bio: Provide an author bio (name, title, affiliation, bio, and contact). You can add a link
  • Profile: Give a brief overview of the company, key information about the company, major projects, certifications, and company logo. Please submit the profile in word format

We review your submission and if it adheres to our submission guidelines and quality standards, we will connect with you before publishing the article.

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

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