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| Property Portfolio |
| 04.06.08 (12:47 am) [edit] |
Author: Parmdeep Vadesha
The aim of a property portfolio is to make money in such a way that the income remains safe in spite of ups and downs of the market as well as due to personal circumstances. To build your own portfolio you first have to own a property. However, for the first time buyers who cannot afford to buy property, there is a refurbishment opportunity that is offered.
Buy a rundown property at a discount and then turn that property into a smart, attractive property that can be let or sold easily to gain a profit. When you finish the renovation project, don't sell but re-mortgage and take the released equity out to apply it to the next project.
If you are not prepared for this, you can opt for the 'Buy to Let' route. This involves buying property at a discount and then letting it to others. Use the rental income to fund a new home. If you have a home, then use it to raise the funds to buy a new property. Move into the newly acquired home and sell or let the previous home. If you manage properly, you can cut down your tax payment also.
If you have a mini portfolio, options will be widened for you. You would be able to acquire deals through it. Mix your portfolio with investments in different markets and different sectors.
There are certain points that you should keep in mind:
1) Make sure that you can fund the project in worst case scenarios as well.
2) You may have to invest money in the property if the rental income does not cover all the costs like mortgage payment, insurance, service charges and maintenance.
3) Remember that frequent increases in rent means keeping your property in good condition which results in spending reasonable amount of money.
To maintain a property portfolio you need to have a dedicated team. The team consists of a funding source, a valuer, an accountant, a lawyer, an insurance advisor, a letting agent, a managing agent, and a maintenance team. You may not need all of them all the time.
The valuation of property is a kind or art and there are large margins in which a single property could fit. If your valuer put your properties at the upper end of these margins then you can certainly refinance other properties easily.
The tax system is always complex. Be sure to hire an accountant who is familiar with the property business. A lawyer is invaluable for a property portfolio. If you are caught in some legal transaction then, this comes handy.
A letting agent is necessary to find a tenant. It is important to maintain a good relationship with the tenant and a management agent is necessary for this.
A maintenance team is vital to keep the property maintained which increases its market value.
The key to build your portfolio is paying the right price for the property. Try to buy below the market price. Property auctions or distressed properties are good choices to start a portfolio. You can also try off plan deals, private deals. It is a good idea to avoid such agents to cut down the expenses.
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| Investment Property Benefits |
| 04.06.08 (12:39 am) [edit] |
Author: Clint Jhonson
Investing in property is a business. If you want to invest in property, you should acquaint yourself with a broad selection of potential opportunities. By diligently researching the many different avenues available to you, it is possible for you to expand your investment property portfolio and consider yourself a ‘property investor’. Today you can invest in anything that will return a profit and build wealth. It is not easy to be an investor, because you have to face many risks and whimsical markets. However, if you do things wisely, your expectations could be realized.
It is all known that long-term property investment is one of the best and safest ways to get high returns on an investment. Many millionaires have built their investing in the property market and the number of people who have gained benefits from investment property is continuously growing. The tendency for long-term investment expansion has been in continuous growth for at least 40 years. This is very appealing for those who want to invest their money. In spite of the lasting gains from property deals, the real estate market could not avoid the pessimistic attacks from media. This is connected with the fact that like any investment market, the real estate market has its good and bad times. The perturbations in investment markets are natural and those who are active in these spheres are used to these changes.
Being such an attractive investment, because it offers high returns after some time, investment property attracts a great deal of money. It is also an attractive investment because you can control other people’s funds, typically in the form of a credit, in order to make your returns higher. So in this way, you do not have to invest entirely your own capital, but you will enjoy the revenue on the entire cost of the real estate you own – both your own part of investment and the loan money. You make not only your money, but also other people’s money to work as hard as possible for your own interest. On average, the investment property prices have risen by about 100% or even more each decade in the last one hundred years. The agiotage on the real estate market is a good proof that their value will remain in constant growth in this century as well.
A mistake made by most of new property investors is having their first property investment either near their own residential house, or located in the so-called ‘hot-spot’ which is advertised on the television or in the media. At the same time as many of these investments may still bring a more or less modest income, there might be the problem connected with its location. It is well known that some areas will always have an over-sold reputation. Another reason for this is that media will always advertise that area and that real estate it is paid for, so in this way your area can even be not as highly rated as it was before. This is not a mistake only made by new investors. The experienced investors can as well hurry regarding the investments and invest in less profitable areas. That is why besides experience a good network of connections are necessary. The real estate market cannot be “conquered” if you are one-person team.
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