Quick tips to find ideal property below market value

More recently people have realized the profits in property buying. Obviously, they are venturing more into property buying when prices are low. You will easily get good property at low prices in areas away from the city. People have now realized the long term stable profits from property investments and therefore, they are ready to invest in property.

Today, the number of house repossessions has increased, which means that the lenders sell the houses at lower prices in order to get their loan amounts. This has created a great opportunity to get a house at lower prices than the actual market price. This has given people a chance to buy great properties at cheaper rates.

Earn a lot from your housing property-

You can renovate your house and rent it at high prices. The more you give them facilities, the more you can charge for them. You need to invest a lot in order to get good profits from it. Today, people need modernized houses with all the amenities. Therefore, you can see great profit from subletting such houses with facilities. So you get immediate returns from the property. You can even get rent which can cover your monthly mortgage payments. This is the right way of making money and your property prices will always increase day by day.

You must always be on the lookout for good prices and good locations, generally, second home buyers, investors, couples with no children and singles, can get huge profits from these opportunities. A single person can buy a two bedroom condominium but can let go if there is not one with a good price difference. There are many locations which are little odd than the city areas. You can find houses with low prices in such places, and couples with no children can go for this purchase if the price is less.

Sense the market timing –

The best tip to find an ideal property below market value is to sense the market timing. The most helpful sign of a property that can be bought at below market price is one that has been listed on the market for a longer-than-usual period of time. Realtors get such information through many services that are always on the lookout for such properties in order to inform their clients. This is a very crucial sign. If the property has been listed for a long time, then the seller will feel like selling at the best price they can get. This offers a chance to get a property at a low price.

If you get information that a seller has relocated to another house or is residing at a rental house waiting for the property to be sold, this is an indication of getting a low price purchase.

The choice of realtor is very crucial.

The buyer must know the intentions while working with a realtor. Generally, the agents do not have much knowledge but the realtors have good information whether the seller has any intention to sell the house at certain prices. The agents have many legal restrictions while carrying out these proceedings but the realtor can give you great profit opportunities.

The best way to go through this tedious procedure of passions is to keep it simple. When the property is being sold at an under priced offer, then the contract must be clear and transparent. There must be a letter from lender for pre approval of the procedure with contract letter which suggests the approval of credit. This gives the security to the seller that the buyer will be providing the loan credentials legally. A transparent contract with a considerable earnest money put down and a quick resolution is much better for being established at a below market price.

All above tips will help you find ideal property below market value. You need to identify the signs clearly and definitely you will get good returns by investing wisely.

© Global Realty & Investment Corp 

Buying residential Real Estate for Renting - Points to Consider

Do you want to buy a rental property? Well, the industry now seems to be on the road to recovery from very low prices; is this a good time to invest in properties? Definitely, the price of the property you buy is indeed very important; however, there are various other factors that you need to consider to ensure that the deal is profitable.

Advantages of Owning Rental Property

Like every other thing, owning real estate property definitely has its pros and cons.  Of course, buying a real estate property is very profitable, as you are investing in a tangible asset that you control. You can earn money with:

Appreciation- It is the increase in value of a property over time.

Income or cash flow results when the rent collected from a tenant is greater than the expenses, including insurance, repairs, property taxes, mortgage payments, and maintenance.

Let us have a look at some points that will help you make a smart decision and invest wisely:
Consideration 1: The amount of rent you can expect: When you are investing money in a property with the aim to rent it out, you have to be assured of a rate of return. This rate should be more than the rate of interest you need to pay for a bank loan. If you are not taking any bank loan, then this rate should be greater than what you get from a rate of interest offered by banks. Some sorts of properties can offer you better returns but you need to invest more for it. Look for a property that will continue to give returns over a long period.
Consideration 2: Expenses: you are planning to invest in a property. As the owner of a residential property, there will be both fixed and variable expenses. Insurance, taxes, etc. are fixed expenses and you will need to pay them annually. It will also include maintenance costs and occasional repairs. Electrical, Plumbing, etc. are your responsibility and not that of the tenants, so you have to pay for it. A well maintained property can easily attract tenants and will give you best returns with the right kind of rent.
Consideration 3: Location of the property: You are going to get the desired returns worth your investments, if you find the right kind of tenants. You have to think from a tenant’s point of view. As potential renters assess the property by its location, nearby amenities, etc., you have to think about all this when you are buying a property for renting out. Examine all relevant factors before investing your hard earned money in real estate property.
Certainly, buying a residential property is a really great way to make money, provided you focus on the strengths and eliminate all risk factors. You can take experts’ advice and assistance before buying a residential property to rent out. Here are some tips that will help you in this regard.  

1. Make sure that your personal finances are in order. Do not buy a rental property unless you have a healthy emergency fund. There are various expenses associated when you buy a home and you should be ready for it.
2. Consult a mortgage lender or broker to find out if you can afford to make an investment.
3. Do thorough research. Ask property managers, real estate agents, or other experts in the area about realistic expectations to charge for rent.
4. Invest in properties at good locations. For targeting good rentals and tenants, seek good quality neighborhoods along with amenities and proximity to public transportation, employers, park, hospitals, schools, etc.
5. Inspect the property you are planning to buy before finalizing your decision. Always utilize professional inspections to determine if any repairs are needed.
6. Understand the rules. There are state and federal laws regarding rental property and one must not violate the rules.

With all above considerations, it will be easy for you to make a smarter decision. Think about every aspect of buying a residential property for renting. Rather than calculating only the financial aspect, take each and every factor in mind.

© Global Realty & Investment Corp