Buy home. Buy Property - rental property investment

Many people set out on the journey of wanting to buy property for rental property investment and for personal occupancy. If you want to buy property for rental property investment you can. If you are looking to buy a home to occupy you probably can do that too. Whilst the money is a big part of the process to buy property, it is not the only part. Even if you only have a little bit of money set aside you probably can buy property - you definitely do not to be filthy rich to become a savvy property investor or home owner.

So what is important about becoming a property investor who might one day own a portfolio of property investments? Here are a few important tips to start you thinking about your journey to becoming a property investor.

1. Establish a plan to buy property. There is no greater risk than that of buying property off the cuff without any planning, goals or research. Setting aside some time to create your own personalized property investor blueprint is worth its weight in returns in the long term.

2. Review your financials. You need to know exactly the condition your personal finances. Review your existing financial commitments. Document your income both gross and net (take home pay). It is important to understand the differences. Understand your current spending habits for your daily costs of living. Scrutinize your social expenses too. Review your current savings in the bank and any saving plans you might have in place now.

3. Seek advice from a financial planner. A good financial planner will help you to review all of your financials. The process of putting all your financials on the table for an outsider to review can be challenging but also very rewarding. You will be surprised how many new insights you can gain from a professional about your present situation. Some people advocate an accountant which is well and good however I believe that a financial planner will help you to create a big picture tapestry of your circumstances and set you up with a plan to help you buy property in the future.

4. Understand your superannuation. Have you ever considered establishing a self managed superannuation fund? Believe it or not, you might be sitting on a wealth of opportunity and resources by tapping into your superannuation funds to assist you with your plans to buy property. Just a note, if you buy property using your superannuation you will be unable to occupy such a purchase - the property can only be an investment property in most circumstances.

5. Research the areas that you are interested in or want to buy property. Don't limit yourself to buy property in areas you simply like but adopt a property investor mindset and research information from leading commentators and property professionals. Exclude slippery salespeople and "get rich overnight" investment companies from your research. Visit local councils and speak to town planners about future infrastructure to be constructed.

6. Follow the market. There is so much free information in the public realm nowadays - don't be afraid to use it. Inspect some homes for sale, attend public auctions, speak to some active salespeople , follow some leading property websites. Know the current value of home prices in the for sale homes pages of your local and state newspapers. You can develop a good understanding about an area in a reasonably short period of time. The internet does make research so much easier nowadays.

7. Research the cost of buying property as a property investor. Every state has variations in the cost of stamp duties and title registrations when you buy property. Every bank has a suite of fees, valuation fees, settlement fees and bank account fees associated on your loans when you buy property.

These suggestions can all be broken down into much smaller items and extensively expanded upon. The list is presented as an appetizer to the discussion you should be entering into in your pursuit of becoming a property investor. The real secret behind any property investor who sets out to buy property or establish a portfolio of investments properties is their commitment to the development of a plan that is researched, prepared, calculated and implemented.

Good luck with your mission to buy property - wishing you rental success.

Continue reading→

Real estate Melbourne - real estate listings, real estate sales and real estate rentals

Melbourne real estate is an apparent wrestle of commentary across all the major banks, economic commentators, the Reserve Bank and the treasurer’s office. Despite the signs of a softening market contradicted by high real estate auctions clearance rates of up to 80% across Melbourne in recent weeks, it is projected that the Melbourne real estate sales market will remain healthy over the long term as property investors continue to actively purchase property and owner occupiers continue to sell and buy respectively. I at times wonder what real numbers might be achieved if there were more real estate listings available on the market.

Inner and eastern suburbs continue to increase in value and a growing supply of new apartments are on offer as a new developments open onto the real estate listings market via a seemingly evergreen supply of construction approvals. Strong population growth is also causing massive development demand for housing and accompanying infrastructure. According to a recent report on 31st March 2015 by the Australian Bureau of Statistics, "Melbourne had the largest growth of all Greater Capital Cities (up by 95,700 people), followed by Sydney (84,200), Perth (48,400) and Brisbane (38,500)." It is no surprise that the outer suburbs and rural urban fringe areas such as in the northwest of the city where land is relatively cheap continues to reap the rewards of the developers eye. First home buyers are heading to these outer areas also to satisfy a desire to enter the property market and secure affordable homes away from the savvy investors market.

Whilst real estate sales may remain strong in the short term, recent reporting from CoreLogic RP Data Home Value Index results seem to indicate that Melbourne’s dwelling values may be on the decline. Research analyst Cameron Kusher says the city has moved past its cyclical peak, which was 11.9% in January 2014. It is worth noting that CoreLogic RP Data results show that Melbourne continues to have the lowest rental yields of all the capital cities, for both houses (3.3%) and units (4.2%) but this does not necessarily mean that landlords are sitting around with vacant properties. The team I manage at hockingstuart, having just come off the peak rental season (January - March), has leased some 350 real estate rentals across the CBD and inner Northern suburbs including, North Melbourne, Carlton, Brunswick, Collingwood, Northcote, Fitzroy and Melbourne. Subsequently our current stock list of properties being offered for lease is now the lowest I have known it in 5 years. Furthermore show me a leading bank that is offering 4% term deposit returns - it is just not achievable in the current market.

Consumer confidence in property remains upbeat and the pursuit of new lands by developers continues to provide opportunity for confident buyers. The Real Estate Institute of Victoria has also released data showing that demand from families wanting more space has led to strong price growth in four-bedroom homes over the past year. The median price of four-bedroom homes grew in inner, middle and outer Melbourne by 3.9%, 4.2% and 5.6% respectively. However, the biggest median price change in the outer suburbs was for smaller, two-bedroom homes. These were up 7% (to $390,000). This suggests that Melbourne’s rising property prices have increased demand for these more affordable smaller houses, which offer a good way to enter the market. Investors are likely to enjoy high occupancy with such investments as well as long term capital growth.

Melbourne real estate is not simply a wrestle of commentary it is a unique tension between sellers of real estate listings and buyers to the transaction of real estate sales woven into the fabric of a distinct tension between home buyers and real estate investors. Did somebody say "yield"? Lets defer that topic for another day.

Chris Snell is a licensed real estate agent and actively manages a substantial property investment rental management team within the hockingstuart group of offices Melbourne.

Continue reading→

Smart Investors Get Tax Depreciation Schedules

Tax Depreciation is something that every property investor should undertake. Whether you own one property or multiple properties, a tax depreciation scheduled prepared by an industry specific depreciation valuer can save you thousands of dollars by offsetting substantial depreciation offsets against the income yield of the rent property. Watch industry expert here to learn more: BMT Tax Depreciation is one of Australia's leading expert and are the only company I endorse to prepare quality reports for property investors. submitted by Chris Snell, Property Manager, Rental Success Blog

Continue reading→

You might have been hearing about how the current economy is making real estate a buyer's market, but do you know how to use this to your advantage? Professional property managers and rental property companies do specialise in assisting investors and home owners rent out their property. Before you can start finding your tenant you need to know how to buy a rental property in the right place and space. This article has advice on how to approach buying real estate in a logical manner that will make sure you get what you want at a price you can afford.

Tips On Making Money With Rental Properties

Buying Rental Properties

1. Find a location of rental properties you want to invest in that are surrounded by local amenities such as parks and malls. In a large city, a property near public transportation is especially profitable. The more things to do that are close to the rental property will draw in more potential tenants and allow you to turn a profit quicker than a rental property that is in the middle of nowhere.


2. Understand the setup of the utilities in rental properties. If you are considering a multiple unit rental property, it is important to pay attention to the way that the utilities and heating system have been set-up. Take note of the number of gas, water and electric meters either inside or outside of the home to determine how many services are connected to the property. If there is only one connection, be aware that you will most likely need to include utility costs in the rent payments. You might also want to make a call to the local zoning commission, so that you know if there would need to be any major changes to the utility services. There could be significant costs involved in splitting or combining services and you will want to know this in advance.


3. Learn how to attract good tenants. If you are going to purchase rental properties it is absolutely imperative that you carefully market your units in such a way that attracts the best tenants possible. Marketing is important and you should pay careful attention to how other owners are marketing their properties, particularly those with low vacancy rates.


4. When purchasing real estate to use for rental properties be sure to do a careful assessment of the neighborhood. Look at the cars parked in the street. Old cars can tell you a lot about the neighborhood in which the property is located. Trash on the sidewalk or worn down houses can tell you that the neighborhood is less than great and at what level you can expect to rent the property.


5. Look for rental properties in student areas. A college or university neighborhood is a great place to look for a rental property to purchase. In most cases, the vacancy rate will be minimal, and most of the time students pre-pay their rent for the semester or even the entire year. The one drawback is that some students only want 3 month leases; however, if you form a relationship with the school's housing office, you will most likely have no problem at all finding tenants.

Research potential properties before purchasing them. If you are considering a rental property, evaluate the following features before signing the closing documents.

One of these is sustainability. How is the condition of the property and how much upkeep will it require in the future?

The second thing to consider is the location. Especially with property that you plan to rent, location can make all the difference. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers.

The third thing to consider is the median income of the property's area. This will not be the same as the physical location. You want to remember that any low rent area will be worse than any high rent area. You should also keep in mind that concerns about location are not as high a priority for high rent areas. Locational issues do become more of a factor in areas with a lower rent.

This article will help you take advantage of the current buyer's market in real estate. Make sure you follow the tips to get the best out of your real estate buying experience. You can get what you want, at the price you want, with the benefits that buyers can get with the state of the economy.

For more tips on making money with rental properties, please click this link

Article Source: http://EzineArticles.com/?expert=Sam_E_Watson
Blog Posted by Chris Snell, Property Manager Australia, Rental Success Blog

Continue reading→

Tips For Investing in Rental Properties - Tips to Become Successful

Tips For Investing in Rental Properties  

Tips to Become Successful

Whether you want to invest in real estate as a full time job or just make some extra money, don't be afraid of the current state of economic affairs. Investing in real estate has and will always be a great way to make money. Professional property managers and rental property companies now specialise in rent out your property for you. There are numerous rental property services that you can hire now and enjoy peace of mind with owning an investment property. Here are some tips for investing in rental property.

When it comes to the type of property you purchase, of course you want to look for a good value. Lately there are tons of houses available through auction or foreclosure. You can also find many deals that are in pre-foreclosure. Look around in the neighborhood that you are interested in. You might find some good deals without doing a lot of online searching.

Claim your free report, 5 Costly Mistakes Landlords Make with Their Investment Properties - click this link.

Look for motivated buyers. When investing in rental property you want to get the best deal possible and you're more likely to get a better deal when the sellers want to close quickly and move on. Some motivated buyers are: 

• people who have already bought their next house. Right now they are paying two mortgages. Or sometimes they can't close on their new deal until they have sold the old house.
• a couple who is going through a divorce. Most will try to sell the joint property to make a clean break.
• a landlord who is unhappy with current tenants or unable to handle the responsibility of rental properties. Some people may start out in real estate thinking it's a good business idea, but just don't have what it takes to be successful.
• an out of town property owner. It can be very hard to manage a property when you're not close by to make inspections or arrange for maintenance. This owner may be looking to unload the out of town property and find something closer to home.

Another tip for investing in rental property successfully is to find property in a good location. You can get top rental dollar for a place that is close to popular amenities such as public transportation and eating places. If you're targeting college students with no cars you want to find a place within walking distance of the things they need to get to. Figure out who you want to market to and think about the things that they will want. 

Avoid the costly mistakes landlords make - follow this link and claim your free report today.

Submitted by Chris Snell, Property Manager Melbourne, Rental Success Blog.
Article Source: http://EzineArticles.com/?expert=Reese_Evans

Continue reading→