Posts Tagged ‘invest in real estate’

Real Estate Mfs and Reits Come Cheap

March 21st, 2010

They say bureaucracy in India can be slower than the most patient snail. So, more than seven years after the proposal was first mooted, the Securities and Exchange Board of India (Sebi) came out with its draft guidelines for real estate mutual funds (MFs). This move has brought much joy and relief to the MF industry.

Now, the industry is out to convince domestic investors that the move could not have come at a more opportune time. In these volatile times, real estate acts as a good diversification option due to its low correlation with equity and bonds. Besides, retail investors can now invest in actual real estate projects with amounts as low as a few thousand rupees.

“Sebi’s move to launch realty MFs will not only foster diversification in the MF industry, but will also promote wider participation in the real estate sector,” says Vineet K Vohra, MD & CEO, ING Investment Management, a fund house that helps manage around $200 billion in various real estate projects around the globe.

Mr Vohra says the move will help bring the Indian market place closer to global norms. As for delivering returns, sample this… ING’s Global Real Estate Fund, which invests in shares of international real estate companies, emerged unscathed in the recent stock market turbulence.

The fund not only took the crash in its stride, but also delivered positive returns over the same time period. If you had invested Rs 10,000 separately in the BSE Sensex, BSE Realty index and ING Global Real Estate Fund on January 10, ’08, your investment would be worth Rs 7,900, Rs 5,500 and Rs 10,800, respectively , as on April 22, ’08. Sebi has given approval to two kinds of real estate funds. The first category is of real estate MFs, which will invest in real estate projects and mortgage-backed securities.

These will be closed-ended funds, listed on the exchanges. As their net asset values (NAVs) will be declared daily, investors will have the option to exit any day. So, you can now say goodbye to the old tradition of illiquidity in real estate investments. Real estate investment trusts (REITs, in short) constitute the second category of real estate funds.

These products are very popular abroad. The most common version of this class of funds allows an investor to earn fixed income like returns through rents of commercial properties . Most REITs are listed on the exchanges and have tax incentives for investors.

Put simply, REITs work like fixed income instruments (rents as coupons), while realty MFs will seek capital appreciation (like a stock price going up) by investing in properties. For years, real estate was synonymous with lack of transparency in transactions and absence of an index, making it difficult to track prices.

Various fund officials like ING’s Mr Vohra hope that the introduction of REITs in India will change all that. They are betting on such products ushering in greater liquidity to this asset class, as well as freeing up developer capital for further investment, changing the dynamics of the sector as well.

With the current real estate boom and no signs of any fall in demand for homes or offices, this may be the best time for investors to own a share of the lucrative realty sector. Real estate MFs and REITs offer the cheapest and most convenient way to do so. However, let’s hope that smoother legislative framework and a clear taxation policy will be put in place for these products, making them investor-friendly .

No comments »

Posted in Articles

Tags:

Luxurious Real Estate Encircles Oceanside California

March 20th, 2010

Celebrated for its sandy beaches, diverse climate, and numerous recreational activities, Oceanside California is becoming a popular destination for both real estate and vacation. Many potential home buyers are initially intrigued by the beauty of the real estate Oceanside California. However, the charming atmosphere of this coastal community will soon capture almost anyone’s heart.

Pristine Beaches Line Real Estate Oceanside California

Situated between Los Angeles to the North and San Diego to the South, real estate Oceanside California rests in the ideal location. And with more than 3.5 miles of beach area, the appeal of the real estate Oceanside California surpasses many expectations. The Oceanside coastline is renowned for its flawless elegance, and remains one of the finest coastal areas on the West Coast.

The Oceanside vicinity is also well-known for its perfect climate. Winter temperatures range around 59 degrees, and summertime raises the thermometer to a pleasant 78 degrees. This variation in temperature allows for residents to enjoy an assortment of outdoor activities.

Affordable Options Abundant in Real Estate Oceanside California

The largest city in North San Diego County, Oceanside has a population of more than 160,000 residents. There are several housing options currently available in real estate Oceanside California. These possibilities include, single family homes, apartments, mobile housing, and assisted living facilities. To keep the pace with the increasing population, 3,500 new housing units are being added to the 55,000 units presently available in the area. Real estate Oceanside California will continue to prosper as the population and city expand.

Real estate Oceanside California has one of the most affordable housing markets in the county, and is considered to have some of the best coastal property bargains in the state. The average home price for real estate Oceanside California ranges from $450,000 to $600,000, a great price for a coastal resort town. The waterfront is home to older, more traditional neighborhoods, while new condos and single family homes rest closer to shore. Real estate Oceanside California has something for any style or price range.

Notable Spots Encompass Real Estate Oceanside California

Real estate Oceanside California is surrounded by various famed locations, and is home to several recreational activities. A favorite destination in the community is the Oceanside Pier. Perfect for any age, fisherman or surfer, this famous attraction is one of the longest recreational piers on the West Coast. Another noted locale in the area is Oceanside Harbor. The Harbor offers a captivating ambiance filled with restaurants, shops, and a lighthouse. The Harbor remains a venue for all water-oriented activities. Fishing, boating, and whale watching are all popular activities enjoyed at Oceanside Harbor. With miles of gorgeous beaches, those fortunate enough to invest in real estate Oceanside California can always bask in the radiance of the sunshine or take a dip in the Pacific Ocean. Possessing one of the prime beach locations in the west, Oceanside provides easy beach accessibility and ample parking; just another reason to choose this community as a real estate or vacation destination.

No comments »

Posted in Articles

Tags:

Little Known Secrets to IRA Investing in Real Estate

March 19th, 2010

If your like most of us, your probably focused on growing your retirement account with as great a return as you possibly can. This is especially true because of the current trend of businesses and corporations turning away from managing their employee’s retirement accounts.

Even if you currently have an adequate retirement account, diversifying or supplementing your current investment plan through IRA real estate investing can give a tremendous boost to your retirement investing.

There are a several keys that unlock the door to the new horizons that IRA real estate investing can provide.

First, you must have a custodian that is experienced and knowledgeable about IRA investing in real estate. This is because you must follow special IRS rules for IRA real estate investing. If these rules are violated you can lose the tax advantages that your IRA provides. Because of this most custodians shy away from overseeing IRA investing in real estate despite the stellar returns that IRA investing in real estate can bring to there clients.

The majority of custodians are actually experts in other areas and professions, many are moonlighting so to speak as IRA custodians. For instance their main job may be as stock brokers or bank employees.

Traditionally IRA’s and other retirement accounts have concentrated on the usual investment vehicles, stocks, bonds, mutual funds. The IRA investing in real estate concept maybe totally foreign to them. They are simply more comfortable with the traditional IRA investments.

Secondly, you need a self-directed IRA account, because most traditional IRA custodians don’t allow clients to invest in real estate. This may seem strange since the IRS IRA rules definitely allow IRA real estate investing as an option. But as stated above most custodians and brokerages are simply unskilled with real estate and the rules that govern there use in retirement accounts. Again this is why choosing the right custodian is so crucial to your investment success.

If you don’t currently have a self-directed IRA account, a good custodian can walk you through setting up one. They can also direct you in how to use a rollover IRA to move funds from other retirement accounts so they may be used to take advantage of IRA real estate investing. One such custodian that has provided I and my clients tremendous service and support is Equity Trust.

Third and probably the most crucial is experience with IRA real estate investing.
This is the steam that powers the whole engine, without it you run a high possibility of losing your had earned money instead of growing it for your retirement.

If you have experience in this area you may be able to navigate the process with no trouble. But if you are not skilled in this area you will need competent advise and consulting to choose the correct investments.

Luckily there are a small number of professional real estate investors with proven track records and experience with IRA investing in real estate.

The combination of a top notch custodian, experienced real estate advisors and the proper type of account for IRA investing in real estate can not only keep you afloat in the wake of the current stock market volatility but, if the right real estate is carefully selected it has the potential to turn your raft into a yacht.

So there you have it, I urge you to take action on this little known powerhouse strategy of IRA real estate investing.

No comments »

Posted in Articles

Tags:

Make Money in Real Estate

March 18th, 2010

 

There are horrendous stories that you hear about people who have lost a fortune playing in the stock market. There are also people who have made money investing in the stock market. But have you ever heard of any person losing a fortune in the real estate market? That’s is quite impossible. Real estate is looking up and those who have invested wisely in real estate a long while ago, are getting good returns on their investments.

 

Nobody has actually revealed the amount of money they have made by putting their money in the real estate market. But if they did not make money, they wouldn’t be investing isn’t it? The reason why many people are not going into real estate business is because you need to have a nose for running a business.

 

Real estate investments, while giving you financial freedom, take up a lot of your time. When you rent out your properties, you should be prepared for good and bad tenants. You will have to manage a lot of running costs like heating expenses and costs for renovations. These are recurring costs. The income you receive from renting out your property should be able to offset a part of your debt, meet your recurring costs and leave enough for your expenses. When you invest in real estate, there will capital appreciation combined with income from rentals.

 

There is also money to be gained by buying property, refurbishing it and selling it. There will always be an increase in the value of the property when it is renovated. This is another way of making money in real estate investments. Real Estate investments also give tax benefits. Interest expenses and repair expenses are tax deductible.

 

Most real estate investments start with the investor buying a house to rent it out. For this strategy to be successful, the rental income should be higher than your mortgage expenses otherwise you would land up with negative cash flows.

 

Another way to make money in the real estate market is to buy a house in an area which is buzzing with potential. Do it up and it will fetch you a price higher than what you had to pay to own the property.

 

You could also look for leasing property. This is basically property, which is not owned by you but is controlled by you. You can sublet or sublease the property and get a good income.

 

When you start investing in real estate, there are bound to be mistakes. You may encounter problems. However, time is the best teacher. Over a period of time you will learn the ropes and will be a seasoned real estate investor. All you require is patience, hard work, an ability to plan. You should be prepared to study the market, scent properties which have potential for capital appreciation or good rentals, have the ability to negotiate buying the properties and entering into contracts and getting finance for these property deals. It does take time, but the returns it gives you will more than make for the time, money and hard work you have spent over it.

 

 

 

No comments »

Posted in Articles

Tags:

Real Estate Investing Guide and Blueprint to Follow ? Part 3

March 18th, 2010

There is a popular proverb – let money work for you rather than yourself working for money whole life. Investment, rather a good investment following the norms set by a real estate investing guide book, does exactly this. A real estate investing guide book teaches you the ways of success in the investment on real estates.

Most of the people who do not want to spend an extra little thought on profit making prefer traditional banking system to keep the money safe. They consider the annual 3%-4% revenue from the bank as an added advantage. This though provides no probation for any risk, yet the return amount is too poor. But a real estate investing guide book can change their perspective of investment. If you can afford to take a little more risk, you may gain 10% – 15% return with real estate investing. This is surely worth of investment and the little risk. But, for that you need a good real estate investing guide book.

A real estate investing guide book advices you on both the dos and don’ts of real estate investing. When you are buying a house, make sure that you have enough capital and time to participate in a cyclical investment process. Investment in real estate restricts the liquidity of the assets. Investment in other areas like stocks and bonds are more flexible than this. So the first advice from a real estate investing guide book is – be definite about your decision. Generally it is advisable that when you have a lot of money on hand, then only attempt real estates.

If you want to turn your real estate investment as a source of regular revenue, then following a real estate investing guide book, it will be precise to suggest that you opt for tenants. With tenants you can earn more money regularly, and then sell out the property when you need. Thus a real estate investing guide book helps you to deal with the liquidity problem of real estate investing, by turning the rigidity of the real estates into a flow of regular income. So, to invest in real estates successfully you should follow a real estate investing guide book by heart.

No comments »

Posted in Articles

Tags:

Real Estate India ? Know More About Dlf Projects

March 17th, 2010

 

Due to boom in real estate in Gurgaon, it is natural that real estate agents and housing companies are busy for making deals. Real estates in Gurgaon is investment worthy as easy availability of houses and offices at competitive rates. Now, Gurgaon is the first choice among those people who are keen to invest in real estates.

As per the sources are to be believed that the prices of real estates in Gurgaon will be increased by 10 to 15 per cent a year, which lasts for few next year. With the launch of DLF’s Aralias, Aralias II, MGF Vilas, DLF’s Magnolia and lately Ambience Caitriona and Unitech’s Karma Lakelands in 2004-05, realty sector of Gurgaon has emerged as one of the first choices among people. These popular projects contain 4-5 bedrooms with central air conditioning. They try to offer all modern amenities and prolific specialization for fulfilling the requirements of their clients.

Due to popularity of real estate in Gurgaon, many renowned developers have started construction of new projects keeping in mind both upper class and middle class people. These high end projects are being placed on various places such as Gurgaon Sohna Road, MG Road, Old Gurgaon Road and Golf Course Road. Most of the high end projects for instance The Palm Drive and The Palm Springs by Emaar MGF, Belgravia at Central park 2 and Raisina by Tata Housing are coming in Sohna Road and Golf course road in Gurgaon.

Besides projects for middle class, there are some new projects which are available with the whopping amount. The realty industry in Golf Course; estimated at $15 billion and growing at 35 per cent annually. Some projects are selling by invitation only. These premium projects are available by paying a whopping amount starting from USD 1 million onwards.

Besides modern offices and expensive houses, Gurgaon is also very popular for its residential properties for middle class people. Nowadays, a lot of constructions are ongoing keeping in mind requirements of middle class segment. Due to easy accessibly from South Delhi, the city has become world’s finest real state destination either for Indian or investors from abroad. With the connectivity from international airport gives Gurgaon special attention over other cities in the NCR.

Gurgaon Real Estate has become first choice among investors as the quality construction and innovative additions. The real estates in Gurgaon offer lucrative profit for investors who are investing money either for commercial or residential properties. The city is renowned as a one of the finest choices for investment in India.

No comments »

Posted in Articles

Tags:

Do You Know Your Investment Real Estate Value Can Drop, and How to Spot It?

March 16th, 2010

The primary motive for real estate investing, of course, is the money. Wealth is the essential reason why people invest in real estate, and typically the first thing people think of when they consider owning investment real estate.

One of the advantages of owning income-producing property is the considerable income generated from rent when a property is purchased and then subsequently managed correctly. If a real estate investor doesn’t overpay for a property, keeps expenses down, the apartments rented, and the building well maintained, a real estate investment can generally make the investor money, even while the investor sleeps!

Notwithstanding, there are there factors that can cause a real estate investment to lose value. Moreover, it can have a drastic effect upon a rental income property’s ability to generate profitability, despite the investor’s efforts.

Okay, let’s look at undoubtedly the 7 worst contributors to the deterioration of rental property value.

1. Neighborhood Decline

The community surrounding the income property can change in a variety of ways that adversely affect your real estate income property. Increasing vacancy, for instance, can lead to reduced rents, which in turn means reduced maintenance causing building deterioration, in turn causing the whole neighborhood to slip into decline and therein triggering a domino effect that simply compounds the problem. The nearby construction of facilities such as prisons, sewer treatment plants, and airports will also likely have an adverse effect on the area. Also, perhaps more subtle and slower in coming, is a decline due to increased crime, perhaps resulting from an adjoining neighborhood spill over.

2. Impact of Adverse Infrastructure

The impact of being directly under the flight path of aircraft, for example, can have a negative impact on a property’s ability to attract (or keep) tenants. Likewise, construction of a major highway or intersection can limit access to the property, and cause noise and dirt by the construction to drive tenants out. Perhaps the result may be an increase in your investment real estate value, but construction can take up to a year or more and during that time you can expect your real estate investment value to drop.

3. Controls and Regulations

Governmental controls and regulatory changes to zoning can adversely impact real estate investment property. Real estate investors that purchase raw land for development, for instance, can see their plans grind to a halt because of a building moratorium or anti-development sentiment. All of which, of course, results in a plummeting value.

4. Wear and Tear

Whether its air and heating equipment, driveway surface, electrical wiring, hot water heaters and boilers, roofing structure, plumbing or paint, sooner or later it will require maintenance and/or replacement. The value of investment real estate is reduced by the economic obsolescence (out-of-date) items if they are not properly maintained.

5. Supply and Demand

Two major factors of supply and demand causes real estate values to go down: overbuilt and tight money. Overbuilt is straightforward. With multifamily property, for instance, overbuilt would imply that there are many more apartment units available to rent than there are tenants to rent the units. In this case, the market can decrease quickly and stay down for a long time when new construction gluts the market causing an overbuilt situation. Tight money means less availability of long-term financing from lenders and therefore less qualified buyers for your rental property.

6. Lack of Proper Maintenance

A run-down property in the neighborhood, if left unchecked, could drive down the values of all adjoining properties. A deteriorating property, whatever the reason, will have an adverse affect on your real estate investment.

7. Pressure to Sell

Highly motivated sellers may reduce a property to a bargain basement prices and smart investors watch for property owners who must sell to take advantage of the owner’s strong motivation to unload the property. Always try to avoid ever reaching the moment when you are forced to sell.

No comments »

Posted in Articles

Tags:

Real Estate: a Good Investment

March 15th, 2010

 

In the stream of finance, investment is a major factor and investing your earnings in the right source is one of the most important and heedful things. Investment is the accomplishment of investing; put the capital in a venture with the definite expectation of profit. An individual can not only invest his earnings in the money mode but also in the means of some property. Like by purchasing land or house the person can invest his income. This type of investment is long term investment and definitely gives some profitable return on sale. In case of house, you can give it on rent and can get the rent income regularly and when you will plan to sell it, that time it will give you an extra profit on the amount which you spent on purchasing that property. This type of investments in land or house properties comes under real estate category.

Real Estate term defines a piece of land including all the natural surroundings including any man made structures along with it. It is also known as reality. In investments, an appropriate administration of properties is held with development or extensive redevelopment. These investments are characteristically made via private real estate fund and these are long term investments or at least have ten years life span with 2-3 years investment period. In finance, the private equity real estate also clutches an important role. It is nothing but a quality class comprised of justified securities for running companies that are not publicly traded.

The private equity real estate plays an important role in investments also. There are following major classes of private equity real estate:

1) Leveraged Buyout

2) Venture Capital

3) Growth Capital

Based on these three classifications, further strategies are implemented while investing in real estate. Strategies like Distressed refer to investment in company where value can be increased from one time opportunity to much higher. And one such strategy in context with Real Estate basically refers to opportunity funds where the investment resembles to leveraged buyout. Due to this many investors consider real estate as separate character class.

Now online investors for private equity real estate are available .These investor’s deal in real estate investment online. It is really one of the best options to make your investment in real estate in spite of any other area as it provides following advantages in investment:

Long term investment

- Provides dwelling along with rent as in case of duplex or apartment.

- After retirement it is beneficial scheme for people who are non-pensioners.

As investment of paper money in other resources does not prove itself as that much advantageous as investing in real estate. So terminating the topic, I would say that it is much mindful act to do real estate investments as the world of real estate is changing and no longer people will invest in real estate directly but will go through attracted private equity real estate schemes.

For details visit http://blog.ira-401k-realestate.com/about/

No comments »

Posted in Articles

Tags:

Easy Tips To Identify Good Real Estate Brokers

March 14th, 2010

My friend, I know you are planning to invest in real estate as it is the best investment avenue in the present modern world.


In fact real estate market has its own charm always as there will be property transactions each and every day. Home is a primary requirement of any human and many are out there in the market looking for great deals.


How can you assure of getting a great deal?


I know that you know the answer. But I want to emphasize the importance of the real estate brokers. Real estate brokers can make the great difference in your investment opportunity.


Many people asked me how to distinguish between a good broker and a bad broker. In fact you also asked me the same question earlier, right?


Let me give you some effective tips for you in identifying an excellent real estate broker.


If you are looking for your dream home through a real estate broker, you have to approach a reputed real estate broker. He will have the reputation only because of his many years of experience and his admirable service to the buyers and sellers. He would have been the facilitator for a buyer to get his dream home and for a seller to get good value for his property.


Next factor to be considered is the experience. You have to find out good real estate brokers. Especially you see that your broker knows in and out of the real estate market in the locality of your interest. An experienced broker will know the good and bad of the property you are identifying. He will know about the local market price of the properties as well.


Good real estate brokers will act as negotiators between the seller and buyer. He will never take the role of a spoke person of any one side, especially of the seller. He will be a patient listener to the needs of the buyer.


You have to approach a real estate broker who has many properties listed for sale. Similarly he should have a good client base of sellers and buyers, so that the deal can be easily materialized.


Good real estate brokers will have strong small group who are ready to serve the customers as and when requires. They will do all processes on behalf of sellers and buyers, including the documentation.


Good real estate brokers will classify the properties in to number of groups based on location, price tags, facilities and other factors. As a buyer this will help you in narrowing down the search.


Good real estate brokers will always give good advices on the repairs and modifications required on the property. He will bring the notice of the buyer the disadvantages of the property as well.


You can check with your family members or friends who had dealings with the real estate broker of your selection. This is a best way to identify real estate brokers.

No comments »

Posted in Articles

Tags:

How to be a Skilled and Professional Real Estate Investor

March 14th, 2010

When you invest in real estate, there are a few things that you can do in order to become a proficient real estate investor. The first thing that you could do, is to do your homework and get acquainted with everything or learn all aspects of the real estate business. Do your research over the internet. You will find a lot of information on the internet that would teach you different ways to solve most of your problems that you will come across as an inexperienced real estate investor. A few of these problems are, finding a property that is below the market value, finding a bank that would lend you a mortgage, coming up with a payment that you need to pay upfront, getting a good deal in mortgage and various other factors.

Practicing Real Estate Investing: Apart from this, you can also go out into the market and try out a few things that you have learnt, to improve your real estate investor skills. When you go out and try things in the real estate market, its probably the best way to learn and understand the business. Although you may not become the best real estate investor overnight, when you put the information that you gain from the internet or other investors to practical use, your tasks become a lot easier.

Things to Consider as Real Estate Investor: When you first invest in real estate, there are a few things that you should consider. One thing that you should know, when you become a real estate investor is, what will you do with the property that you buy. You can either choose to flip houses, buy property to rent them or just fix up old properties to increase their value. When you get into real estate investing by knowing what you want to do with the property, you’ll also have some ideas on how to finance a deal.

Finding the Property: Another thing that you should know in order to become a good real estate investor is, how to find the right property that is below the market value. There are a few ways to find properties which are below the market value. You can buy foreclosure properties, REO properties or you can also structure up a deal where you do not have to pay all the money up front. When you buy properties that are below the market value, it would help you make greater profits in real estate investing.

In addition to this, in order to become a skilled and professional real estate investor, you should also know how to use the assistance of various professionals in order to accomplish your goals. A few of these professionals would be real estate agents, mortgage brokers and real estate lawyers. When you seek the help from these real estate professionals, they might offer you some needed information and this can save you time.

All said and done, its not tough to become a professional real estate investor, you just need to put in a little time and effort in order to learn how things are done. If you are persistent and have the right information regarding the real estate market, then your task would be even easier.

No comments »

Posted in Articles

Tags: