How Do I Break Into the Property Market?
Posted by admin | Posted in Properties | Posted on 15-08-2010
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Worldwide, consumers are feeling the tightening strangle hold of increased commodity prices, petrol price hikes and the damning effects of the worst global melt down in eighty years, but not all is gloom and doom for the South African economy.
Fortunately we have been relatively unscathed by the collapse of the banking and investment sectors in both the USA and EU, which to a great extent was fuelled by the inordinate greed of a few decision-makers.
<strong>Interest rate cuts on the cards for next year</strong>
The recent announcement by the monetary policy committee of the South African Reserve Bank to leave interest rates unchanged for the second consecutive time in the past four months will, without a doubt, help restore confidence in the flagging property sector and make this the time to invest in property.
That there is a real possibility of an interest rate cut early next year and with recent news via some of the top real estate agents in South Africa that the property market is showing early signs of buoyancy are both very good pieces of news for property owners and prospective buyers.
Although many South Africans may still feel that investing in property is out of their grasp, this is largely not true as there are always ways and means of getting into a sector, and it seems that long-term is expected to rebound to its heady heights of the boom.
<strong>Partnerships back affordable housing</strong>
There have been innovative partnerships between South African banks and local and international finance houses that have added clout and financial backing to affordable housing. In 2007, for example, one local bank forged an alliance with the French Development Agency to borrow €40 million to help prospective buyers with a joint monthly income of R7500 or less to purchase their own homes.
<strong>Lower your sights and buy smart</strong>
Instead of waiting for the opportunity to buy that dream home, lower your sights and aspirations. One sure fire way of breaking the property logjam is to buy a flat or apartment that you can afford.
Although it may not be the perfect home for you and your family, you can always wait for the expected up turn, sell at a tidy profit and re-invest in a more expensive property. In this way you can build up your property portfolio brick- by- figurative-brick.
<strong>Buy to let</strong>
Another way of breaking into the property market is to buy with the intention of letting. The majority of letting agents canvassed recently have indicated the demand for rental property is on the upswing, particularly in the past 6 months.
Landlords are also beginning to see acceptable letting returns, with Gauteng leading the way. Year-on-year flat rentals in Johannesburg and Pretoria ended, on average, 25% higher, far surpassing the 9% consumer inflation growth rate.
The other good news is almost 60% of all rental property is rented out in under a month, making it a very viable investment.
Worldwide, consumers are feeling the tightening strangle hold of increased commodity prices, petrol price hikes and the damning effects of the worst global melt down in eighty years, but not all is gloom and doom for the South African economy.
Fortunately we have been relatively unscathed by the collapse of the banking and investment sectors in both the USA and EU, which to a great extent was fuelled by the inordinate greed of a few decision-makers.
<strong>Interest rate cuts on the cards for next year</strong>
The recent announcement by the monetary policy committee of the South African Reserve Bank to leave interest rates unchanged for the second consecutive time in the past four months will, without a doubt, help restore confidence in the flagging property sector and make this the time to invest in property.
That there is a real possibility of an interest rate cut early next year and with recent news via some of the top real estate agents in South Africa that the property market is showing early signs of buoyancy are both very good pieces of news for property owners and prospective buyers.
Although many South Africans may still feel that investing in property is out of their grasp, this is largely not true as there are always ways and means of getting into a sector, and it seems that long-term is expected to rebound to its heady heights of the boom.
<strong>Partnerships back affordable housing</strong>
There have been innovative partnerships between South African banks and local and international finance houses that have added clout and financial backing to affordable housing. In 2007, for example, one local bank forged an alliance with the French Development Agency to borrow €40 million to help prospective buyers with a joint monthly income of R7500 or less to purchase their own homes.
<strong>Lower your sights and buy smart</strong>
Instead of waiting for the opportunity to buy that dream home, lower your sights and aspirations. One sure fire way of breaking the property logjam is to buy a flat or apartment that you can afford.
Although it may not be the perfect home for you and your family, you can always wait for the expected up turn, sell at a tidy profit and re-invest in a more expensive property. In this way you can build up your property portfolio brick- by- figurative-brick.
<strong>Buy to let</strong>
Another way of breaking into the property market is to buy with the intention of letting. The majority of letting agents canvassed recently have indicated the demand for rental property is on the upswing, particularly in the past 6 months.
Landlords are also beginning to see acceptable letting returns, with Gauteng leading the way. Year-on-year flat rentals in Johannesburg and Pretoria ended, on average, 25% higher, far surpassing the 9% consumer inflation growth rate.
The other good news is almost 60% of all rental property is rented out in under a month, making it a very viable investment.
<strong>The quick guide to buying property</strong>
- Rather save for a sizeable deposit before making the purchase. If you buy with an 80% – 100% mortgage bond you can’t possibly expect the rental accrued to cover the costs.
- If your intention is to ‘buy to let’, shop around for your home loan – certain financial service providers offer home loans designed especially for ‘buy to let’ clients that take into account potential rental income.
- Invest for the long term and focus on building your wealth over time. This will mean that you are not held at gun point by short-term fluctuations.
- Remember that you can have a steady income from your property and enjoy the capital growth over time as well.
Watch the video related to property
This is the 2008 Rent’s live broadway performance. Disclaimer: All publicly recognizable characters, settings, etc. are the property of their respective owners. The original characters and plot are the property of the author. The editor is in no way associated with the owners, creators, or producers of any media franchise. No copyright infringement is intended.
Help answer the question about property
How long does a property owner have to remove an unpermitted room addition?One of my friends owns a property in the city of Garden Grove, CA. This property has an unpermitted room addition, which the city has ordered him to demolish. He currently does not have enough money to remove the addition. Can he stall the process somehow or what are his options? How long does he have to remove the addition?
The property was purchased in its current condition. The city has ordered him to demolish the rooms and turn it into a carport because the property has no garage. The part of the home that used to be the garage was built into extra rooms by the previous owner who somehow obtained permits for that.
Flipping or renting depends on your long term goals. If you are in for a quick, dangerous, profit, then flipping would be the way to go. If you are more interested in possibly retiring early with a good cash flow throughout your retirement, I would buy to rent.
When you research an apartment building to rent out (duplex/triplex/quadplex or a multiunit building), just be sure that your income will be higher than your expense, and you will be safe. It sounds easy, and it really is. Example? Sure!
Lets say you pay 100k for a quadplex on which tenants pay electric and gas.
100k mortgage would be roughly $1400 a month including taxes and insurance. (Try to get them included and then you don't have to worry about it!)
Put aside a set amount each month in a seperate account for repairs if you need them. Lets go with $150 for this example.
Lets say each tenant uses $40 in water a month, so your expenses would be easy:
$1400 mortgage
$150 repairs
$160 water
_____________
$1710 in expenses
So each unit would have to pay $427.5 a month for you to break even. If you can charge more than that (say $600 a month?) then the extra is profit in your pocket.
When you do your planing on what you can afford, try to keep in mind that all units might not be rented all the time. For my apartments, since they are in a college town, I figure everything with 3 months of vacancy a year on each apartment.
If you are okay on money at the moment, but want to retire early, get mortgages for like 20 or 25 years instead of 30, and pay over your payment every month. If you pay just $100 over on your principle every month, you can pay your loan off up to 10 years earlier.
To purchase properties, I have had great luck buying on contract. For roughly 10% down, I have had owners finance me for up to 5 years before I had to get a commercial mortgage. All the improvements I've made to apartment buildings have come from that repair fund I mentioned earlier.
Flipping is more work when it comes to research. You have to find where to get the money, find out how much (exactly) the repairs are going to cost you, and how much the home will sell for. The first house I put a purchase offer in on to flip had 2 months of planning behind it.
Good luck.
I would simply walk away, forfeit you deposit, and let them chase you. By law, they have to make a good faith effort to rerent your apartment, and if they do, you are not liable for anything. If this occurs before the time you had paid for (via forfeiting deposits and etc.) They owe you the difference
holy shit everything looks so fake
damn i dont see how people can watch this!! kids, thats understandable but adults !!! LOL wow.
I answered a similar question to this a while back (http://uk.answers.yahoo.com/question/index;_ylt=AsLmOyL.3PrfP4Y8WjUxO1AhBgx.;_ylv=3?qid=20090908051831AAK3P85&show=7#profile-info-VbotRApNaa) but just to explain the thoughts of "rich pay more":
There are 3 methods of taxation that I can think of:
1) No taxation
2) Fixed rate taxation
3) Progressive taxation
1) If there was no taxation, there would be no support if you were to fall out of a job/ill/loss of home/education… etc
2) Fixed rate taxation would effect the low paid to greatly, and with less money to invest, there is less chance for them to become affluent
3) Progressive taxation equates to contributing in later years what you were likely not to have been able to during your early years.
With the huge tax deficit that this Labour Government has wracked up, the only way to reduce it would be either to cut jobs in the private sector (why would Labour do that when more people are out of work, more calls are being sent through Government departments) or increase taxes.
They have believed that the higher taxes for the wealthy (who are deemed to be able to afford the rises more than people on minimum wage) with concessions for pensioners and lower paid would be the fairest way to balance their books.
Of course, whether we agree with it or not is besides the point as the general public voted them in to represent them and manage the countries finances.
The real reason they didn’t have a bench press competition is because Scott Steiner can actually bench 600 lb. Triple H has only maxed at just over 400. wwe didnt want to ruin the credibility of their precious golden child.
This "abandoned" home was probably reported to Chase by a concerned neighbor – who didn't want squatters and riffraff taking your property over. They do have to protect their property as money is still owed and its considered an "asset" quite different from their policy on "foreclosed" property. The company that Chase hired should be sued, and you should have a RE agent/broker rep you in the sale of your property, then notify your neighbors about the house being on the market, a new buyer may come from them.
This guy doesn't post questions, all of them are rants.
Try advertising the place on Craigs List yourself. This way you know it is being listed for rent. Best of luck
I am an adjuster, primarily in property and business income, with some general liability thrown. I broke into the field as an independent adjuster following a major hurricane; I am currently still an independent adjuster, however have been working on "switching" to a carrier.
I generally enjoy my career. The frustrating things for me are:
1) Contractors. Especially contractors that tell the insured something is covered or this is "how it needs to be done". The insured's then get it in their head that the contractor knows the answer to everything, and the adjuster is completely wrong.
2) People (insured’s and contractors) that believe a loss has occurred, and it hasn't. For example, when someone turns in a roof for "hail damage" when the damage is actually caused by the age of the roof. And then, they will not accept your opinions or the opinions of other experts (engineers) regarding the cause of loss.
3) Claims that won't die. Insurance claims are a "sloppy" thing; you have to take all the documentation, sort it, and then determine what is fair and correct. With larger losses, it gets very difficult to nail down an exact price, so you end up negotiating; which is fine. But, then, after all of that negotiation, you finally have settled a six figure loss; then 8 months later, generally the contractor, will come back and say "you forgot to add in $X,XXX.XX", and all the repairs have been completed.
4) It doesn’t take long, and you will start to see the same thing over and over and over again. I try to avoid flipping out when ever someone wants to show me hail stones from their freezer. (That’s a bit of an exaggeration, but things like that happen all the time.)
5) Agents that do a poor job. Such as not selling the $100/yr sump pump endorsement for residences, or not selling the Extended Business Income Coverage.
I personally prefer more complex claims, but that is me. I know other adjusters that would prefer to look at 5 very simple claims.
An average week for me is this:
Inspect claims on Mon., Wed, and Friday AM. Then I do paperwork on Tue., Thu. and Friday PM. If it gets busy, I do inspections all day on Friday and paperwork on Sat.
I end up working anywhere from 2-14 hours per day, depending on the type of claim and how busy it is. Generally I work about 40 hrs per week.
Please dont look up a wrestling video and then talk about it being fake!
its probably fake just like wrestlng
perfect steinglish!
I think what they really seecame to see…is for me to walk down that r-aisle….
XD
You are not getting your deposit back. Thanks to you changing your mind the owner lost of month of advertising the house for rent.
thats true buddy