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.
How You Can Make Money From Home
There is no secret to making money online, the only secret is your persistence. Hidden away between the tips on starting a wine club, taking up a photography club or joining the wine revolution, there are smart tips that anyone could use to earn money online without having to quit their day job. We have written lots about the many ways people abroad to help finance their lives.
A good place to start with online jobs is with paid surveys. Surveys pay for your time and allow you to earn a bit of extra cash. The reason you will be able to earn more than what you are actually worth is that a survey company will pay to send you their questionnaire so that you can answer it. The more accurate and detailed your answers the more likely you are to get paid.
There are many survey companies available, you need to choose wisely and carefully as some surveys are paid better than others. For example, you may get paid well if you give an opinion on the health of wine or food. You may get paid just as well if you offer an opinion on which type of music you like.
Another great way to make money online is to write articles. You could write an article and then sell it to an affiliate. If someone likes what they read you will get a commission.
If you are unable to write or if you do not have the time, you could hire someone to write for you. This could be someone who has experience in web content writing or a freelance writer. You could also sell your own articles on an affiliate website such as Clickbank or Commission Junction.
It is easy to make money, it can take some time but it is definitely possible. All you need is determination and discipline to keep at it.
Many people overseas have chosen to live off the grid lifestyle. There are many benefits to living this way and one of them is being able to make money from home.
There are also a lot of opportunities to make money doing research online, there is a constant increase in the amount of knowledge that is available to the public. It is much easier to research and discover new ways of earning money. and you can get started in a short space of time. So, I encourage you to give it a go.
One of the easiest ways to make money online is by becoming a blogger. It really is very easy to become a blogger. Just type ‘blogging’ into Google and then fill in all the details. It is easy and it can even start to look lucrative.
Blogging is a good way to earn money if you have an understanding of the basics. You need to write about something that interests you. This could be about your family life, your interests or even a hobby that you like.
Once you have set up a good website for your blog, the next step is to get visitors to it. One way of doing this is by putting up advertisements. This is just the same as writing articles for other websites.
Some people choose to make money by selling products. You can do this in two ways, through a site such as eBay or through affiliate marketing. You could sell e-books or products related to the niche you are blogging about. The great thing about eBay is that there is always a steady flow of visitors.
These two ways are only two of the many ways to make money online. I recommend you look at all the options and find the ones that work best for you. Once you have found them, you will never stop learning about ways to make money online.
How To Avoid the Risks of Poor Credit
Security Finance is an unsecured debt collecting agency that, via a network of affiliated companies, provides “secure” personal loans to consumers who may otherwise struggle to meet their existing debts. Their loans are generally short-term, and their conditions often vary dramatically from those of traditional short term personal loans. The services they provide can be invaluable to both the consumer and the lender.
Security finance offers a wide variety of loans. These include: home equity loans, revolving credit lines, commercial and business loans, car and motorcycle loans, and other types of unsecured loans. These loans can be used for almost any purpose, and they will be more beneficial to the consumer than those offered by banks and other unsecured lenders.
Secured personal loans offer an excellent alternative to the high rate of interest paid by unsecured loans. The interest rates are often less, the terms are easier to meet, and they are often better suited to meeting a consumer’s unique financial situation. The collateral provided with the loan usually allows security that the loan will be repaid in a reasonable amount of time, with little or no difficulty.
Secured loans require the debtor to place collateral, such as his or her car, home, or other valuable asset, in order to receive the money they have been borrowing, and are therefore considered by the debt collector as an attempt to recover something that has been taken. Debt collectors will not hesitate to call a borrower who does not follow the terms of his or her loan agreement and in some cases will go as far as harassing them, calling and/or sending letters in an attempt to collect on a debt.
When applying for a secured personal loan, many borrowers are worried that the debt will affect their credit score. The fact is that there is virtually no correlation between the amount of credit available and the credit score. However, secured loans will typically have a much lower credit score than unsecured loans. This is because the borrower is putting his or her assets in a bank account where they are likely to be liquidated for payment.
It is important to remember that the loan does not negatively affect the credit history. The only time it can result in damage to a credit report is if it is reported incorrectly. If a borrower were to try to pay off a loan on a credit card that was reported as being “lost”, he or she would then be making the error a second time.
Security finance offers consumers an exceptional opportunity for personal development through the use of online applications, and the ability to make several payments on the same day to avoid late fees and penalties. This service also makes it easy to avoid late fees when paying loans off at the end of the month.
The ability to apply for secured loans online provides a tremendous opportunity for the consumer to improve his or her credit score. Security loans can provide a large number of benefits to people who are in financial difficulty, including: low cost, low rate loans, low credit, and the flexibility of being able to make multiple payments.
If you are considering applying for a secured loan but have never applied online, you should take advantage of the opportunity to make several purchases in a short period of time, rather than waiting until the last minute to apply for an unsecured loan. By using the secured finance website, you can save yourself the time and stress associated with filling out an application and can ensure that your credit report shows your financial progress accurately.
Once you have applied for a secured loan, you should also make sure that you understand the terms and conditions of your loan, including any interest rate that may apply to the loan. Be sure that you understand the term of the loan in full and fully. Do not hesitate to ask any questions that may arise. You should always contact the company directly when you feel that you are not fully clear on a matter regarding a loan.
Secured finance loans are a great way to increase your credit score while avoiding the hassle and expense of filling out and paying off an application by mail. Because the borrower is making a direct deposit of money into an account, the credit report that shows up on credit reports is often inaccurate.
How To Find Free Rates On Money Exchange
Money is a common item that can be bought, traded, exchanged or sold. This usually includes the value of the currency as well as gold and silver. Money is commonly accepted as payment of certain obligations, including taxes, and payment of certain goods and services in a specific country or socioeconomic context.
There are three money systems in the world. The first is the use of coins or other units of currency, which are available in fixed denominations. The second is barter. It involves exchanging items of utility with other items of utility. In the third system, known as fiat money, there is no central authority that decides what the money supply is, and the monetary base is determined by political will.
The most common monetary system is the gold standard, which was used as far back as ancient Greece and Rome. In this system, coins were designed to be redeemable for gold bars. Gold, however, had a relatively high price at the time, and most individuals had no access to it. Barter is much more popular today, and most people live their lives in barter, trading items with one another.
In some nations, the second money system is called paper money. Most countries have national currencies, and each government issues money in the name of their country. This type of money is not backed by anything of physical value. It is not held by the government or bank. It is simply made from paper. Since most countries use this kind of money, it is known as the official “money” of the country.
Electronic cash was introduced in 1970. This system is very similar to barter. Instead of bartering for items, electronic money is created electronically. It is created electronically to represent actual objects that can be used as payment, and then is transferred to the buyer. The process is very similar to barter, except that there are no actual goods to be bartered for. It is considered a virtual currency.
There are many different types of money, and each one has its own characteristics. Money in the U.S. has a backing and is created by the federal reserve. Money in England is backed by the pound sterling, while the European Central Bank in Germany uses the euro. has a currency known as the Deutschmark.
Each form of money has its own advantages and disadvantages. People who use different forms of money have their own reasons for doing so. Many people choose to exchange one form of money for the other, to get the best rate on an item they need or want. Some choose the same form of money for more than one transaction.
Money exchange services offer different services to help people get the best rates on money exchange. They include a variety of methods that can help someone get a better rate. Rates vary depending on the length of time you wish to get money, the size of your order, and the current value of the item you are exchanging. Some of these services can also provide you with a credit card or other form of online payment to transfer your money through.
These services are available almost everywhere. You may call around to various companies for rates, or you can check out the Internet. There are several places on the Web that will give you free quotes, and compare rates among companies. It is important that you understand the rules and regulations that govern the rates you receive from these companies before you agree to any deal.
There are several different online providers. You will often find them listed under the names of a variety of different names, such as Money Exchange, Moneygram and eCash. If you are interested in getting quotes from multiple companies, make sure to ask around for quotes from at least three. so that you have a clear picture of how much the rates will vary and from which company to go with.
Many places will offer you a variety of free quotes if you fill out a form. Others will charge a fee for this service. To get an estimate, you should send out several free quotes. and then make sure to follow up with the companies.
To be able to get the best rates, it is very important that you get as many quotes as possible from different companies on the Internet. There are many sites that you can go to. Some will charge a fee to get these quotes.
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