I recently decided the time was right to utilise some surplus cash I had available and began looking to purchase an investment property. Whilst it would have been easy to just dive in and find something that I could afford regardless of the location or potential growth, I thought it best to do some research knowing that my investment property was more than likely going to be a long term property investment for me. Timing was also good from an income perspective –I good easily demonstrate my capacity to service the investment loan I would need to complete the purchase and negatively gear the property. The “cost” of my investment loan after tax benefits were taken into account were considerably reduced.

When I began to think carefully about purchasing my investment property, I took such things as what economists were predicting as far as growth and property value increases as well as expenses that I would incur, both now and ongoing. This was definitely a decision I had to make with my head and not my heart. I also considered what was happening in the investment loan scene particularly in relation to features of an investment loan that could be advantageous for me as well as the general interest rate environment.

On the property front, my first port of call was to view the recent BIS Shrapnel report noting that by mid-2011, the median Sydney house price will climb from $560,000 to $650,000 – A senior economist at the firm, Jason Anderson, said the price rise would be spread across the city, helping cut the gap between Sydney’s two-speed property market. This was quite encouraging and meant that I could now look at a vast array of locations for my investment property. Whilst deciding on a local property, I also looked at the opportunity to perhaps purchase an investment property interstate, which is definitely something prospective buyers should focus on.

As far as investment loan product was concerned I checked out a number of mortgages until I found one that included a capitalising interest component. I wanted to make sure that in the event that I had surplus personal income I could apply as much as possible of this to my home loan repayment as opposed to subsidising my investment loan repayments. A capitalising feature in an investment loan also gives me some protection in case of unexpected maintenance costs on my investment or a prolonged vacancy.

The next important issue I had to consider when deciding on an investment property was the cost associated with the purchase. There were the up-front costs such as loan fees, legal fees and government charges as well as the ongoing costs such as maintenance costs, real estate agent’s fees (rent collection), loan repayments, government taxes, etc. From a discussion I then had with my accountant, I discovered that as this was to be an investment property, most of the costs associated with the purchase, both up-front and ongoing, were tax deductible, either in the year I incurred them or in some cases they had to be spread out or amortised over a 3 or 5 year term.

I also checked out the possibility of borrowing these costs within my investment loan. This is always a possibility but I discovered that if your investment loan exceeds 80% of the purchase price then the costs increase – basically it did not seem worthwhile to take my investment loan past 80%. I did realise however that if I included my home property as security for the investment loan (I had quite good equity in my home) then this meant that I could borrow 100% + costs on the purchase within the investment loan. This again meant that instead of applying my savings to the investment purchase (and taking a smaller investment loan) I applied this to the reduction of my non-deductible home loan debt and increased my investment loan debt. Increasing the investment loan like this was much more tax efficient for me.

Having done my own property research and having sourced an excellent investment loan I now felt at ease with my decision to go ahead and start to look in earnest for a property.

I am now the proud owner of an affordable investment property that I negatively gear for taxation purposes through my investment loan. With the help of a reputable non-bank home loan provider, I have structured my home and investment loans to maximise my tax benefits.

When thinking about purchasing an investment property and looking for an investment loan it would always be advisable to thoroughly research the current real estate market, source qualified information about where the market is heading both locally and interstate as sometimes this may be a more profitable option and finally, speak to qualified financial consultants as this could potentially save you thousands when claiming deductible expenses. And don’t forget to make sure your home and investment loan are structured properly so that you are minimising your tax bill as much as possible.

avi
http://www.articlesbase.com/customer-service-articles/my-little-nest-egg-an-investment-loan-helps-me-secure-my-investment-property-in-australia-547520.html

Murcia is located in Southern Spain on the Mediterranean coast. As such it presents excellent opportunities for buying property abroad. Here’s a few reasons why property in Spain, Murcia region is a worthwhile investment:

1. There’s a great choice of investment property including holiday homes and retirement homes in the popular Costa Calida region where Murcia is situated.

2. Many properties are located close by golf courses and therefore carry the added potential of being classed as golf properties – offering excellent potential for property investment and rental return.

3. Currently being built, the new Covera International Airport will add to the popular Murcia and Alicante airport facilities. Both Alicante and Murcia are serviced by cheap and regular flights from several regional UK airports. These factors help guarantee easy access and good levels of rental return as well as a good pool of potential future property buyers.

4. Murcia boasts some lovely beaches and landscapes. It possesses lush green areas like the Segura and Guadaletin Valleys as well as beautiful, desolate desert zones.

5. Whilst Murcia enjoys low rainfall and hot summer climates, the sea breezes make for comfortable days. You can enjoy a range of outdoor activities including sea swimming at over 200 beaches in the region.

Looking for Spanish property for sale? A range of property trips and invaluable advice can be easily organised for Murcia, Costa Calida, Costa Blanca and other southern Spanish regions. Property portfolios include a range of off plan developments.

John Turner
http://www.articlesbase.com/business-articles/looking-for-investment-property-in-spain-112600.html

Owning rental property can be one of the best ways to boost your personal net worth. The profits can be great from your property income investment. Unlike the ups and the downs of the stock market, real estate generally always appreciates in value over time. And, if you purchase the right property, in the right area, you can easily surpass the returns available from the stock market and other more traditional forms of investment.

Not everyone has the skills to be a good landlord, but those who do find that they can build a lot of wealth and monthly income with their investment properties in a relatively short period of time. If you are looking into purchasing investment real estate and are not yet skilled at being a landlord, you can always hire a property management company to manage your properties for you. They can manage for you until you either gain the skills yourself, or decide that a management company is your best long-term option.

Finding profitable investment property can take a bit of time, some local connections, and tons of research. However, once you learn about the industry, and start buying investment properties, it does get easier and easier to do.

Before you ever place an offer on a piece of property, you should be familiar with the following three things:

Understand Your Timeframes and Commitment Time

One of the first things you should consider is how long you are looking to own the property. You should always know the answer to this question before you purchase any investment real estate. The length of time you plan on owning the property has a lot to do with how much the property will cost you in repairs and maintenance. It also has a lot to do with how much improvement you are willing to make to a property.

The length of time you plan to own the property also determines some of your risk factors. Just about any property will increase in value over 20 years. However, if you only plan to own the property for 2 years, then you need to much more carefully consider the repair costs and initial price you pay for it. For most people, and for most properties, investing over a longer period of time makes the most financial sense.

Take Time to Build a Network of Real Estate Agents and Other Landlords

One of the best things you can do as a new property investor is to build yourself a network of real estate agents and other landlords. They will be the first to bring properties to your attention which they think you might be interested in purchasing. They will also serve as great references when you have questions about the industry or problems with one of your properties; nothing is better than talking to others who have experience!

Clean Up Your Credit

One of the most important things you need to do, before ever applying for investment property financing, is to clean up your personal credit and reduce your debt load. You will get much more favorable lending terms if you have no credit card debt and high credit scores. Also, by freeing up as much of your income as possible each month you will have the cash you need to invest and to maintain your properties well.

By considering your timeframes, building your network and having great credit you will be well on your way to becoming a successful real estate investor.

Andrew Stratton
http://www.articlesbase.com/investing-articles/property-income-investment-profits-197917.html

I had an investment property on the market, but with the market conditions, it did not sell. Now that the rates have dropped, I can refinance it and easily turn it into a cash flow + property. Is there a rule that says I can’t refinance it if I take it off the market?
to add details, I do have renters in there now…

hard to know if you will be able to refinance, many people based upon their situation are finding that they can not refinance need more detail like loan versus equity in the place

I would like to buy an investment property using the equity in my present home,without having to sell my present house as it’s in an up and coming area. Any advice would be much appreciated.

Re-mortgage your own home to raise the deposit on a buy to let place. Mind you, beware of those tenants out there. You cant tarr them all with the same brush, but loads are con artists. Struggling with one at the moment!

I had an investment property in AZ, it was foreclosed on a year ago because I could not get a renter to offset payments. Now my gfriend wanted to buy a house in CA which where we live, what are my chances of co signing a loan with her? I have a good job and pay and currently have no debt.

Thanks

It is possible to get a loan after 12 months of good credit history. However, you said you have no debt, which likely means you’ve done nothing to rebuild your credit. Since the negative items will remain on your credit for a min. of 7 years, you will need to establish enough good credit to offset the bad.

The easiest way to find out if the two of you will qualify is to apply for a loan. Your girlfriend may be able to qualify on her own, assuming she can afford the payment.

Good Luck!

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http://www.sixfiguresyndication.biz Many personnel still don’t understand the real estate investment business. But nearby are capital modish which you can lacking trouble understand the ins and outs of commercial property business.Brad Wozny has noteworthy creative insights to share, plus big tactics modish dealing with how to buy commercial property, investment property mortgage, mortgage training and commercial property investment, as well as tips and tricks from the masters themselves. http://www.sixfiguresyndication.biz

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You don’t have to be Donald Trump to realize that foreclosures often represent some of the best deals in real estate. Banks are in the business of loaning money at high interest rates and collecting mortgage payments, not owning property. So whenever banks repossess a house from someone unable to keep up with the monthly bills, they look to sell it again as soon as possible — usually at a cut-rate price. So if you’re looking to save big money on a house purchase, it pays to keep an eye on local foreclosure properties for sale.

Once upon a time, only hardcore real estate developers were interested in foreclosure properties for sale. That’s because most of the foreclosed homes were in undesirable urban areas with high crime rates and problems with gang violence. But thanks to the mortgage crisis in recent years, we’re seeing more and more foreclosure properties for sale in prime suburban subdivisions. These homes give owners a safe environment in which to raise a family, as well as access to some of the top school districts in the country. It’s no wonder, then, that more and more people are shopping for foreclosed homes these days.

How do you go about finding foreclosure properties for sale? Most folks opt not to work with a real estate agent — at least initially — when trying to find a good deal. Instead, there are a number of websites that provide free listings of recent foreclosures nationwide. You can browse homes by price, size (square footage), or location, and grab the necessary contact details if you want to tender an offer.

Another popular route is to attend local or online property auctions. At these auctions, you can bid on foreclosure properties for sale and hope to score a bargain that way. One of the advantages of auctions, of course, is that you name your own price. If you bid is accepted, then you stand to come away with the best possible deal. However, an obvious drawback is that you’re not guaranteed to be the highest bidder, so you always risk leaving empty-handed.

And finally, the government always maintains a list of foreclosure properties for sale on the Housing and Urban Development (HUD) website. While most of the listings are for modest single-family homes, you’ll occasionally come across exotic mansions that are being offered for pennies on the dollar. These places have likely been seized in drug raids or from white-collar criminals and are now being sold in order to pay off fines, which means bargain prices for buyers.

The mortgage crisis hasn’t been very much fun for anyone, but it does mean that there are more affordable homes out there today. If you’re in the market for a new place, it would be smart to check out foreclosure properties for sale instead of hunting for a house through regular channels.

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When referring to property investing a house flip is a smart way to go. It is also a slightly bold move for many that are considering this as a first time property investment. At the very same time you can decrease the chance while maximizing the potential profit by following some axioms. 1 ) Have an inspection. For who knows what reason there are numerous folks who enter into a property flip situation without having a valid and complete inspection of the property made.

This implies you might be doing work that may need to be undone at some later point in the act. You wish to avoid this situation if at all possible and it’s simply done ( usually ) by having a thorough inspection. There will always however be some surprising surprises along the way.

Two ) Build a budget and keep it up. Most of the people flipping homes plan a budget. Unfortunately, for who knows what reason, few basically stick to the budget they originally established. It is a wonderful idea to leave a little shake room in your budget for surprising emergencies but be firm on the spending boundaries for specific projects. If you go over on those projects eliminate something some place else to save money. Three ) Consider the target consumer when making adjustments.

You have to understand when getting a house to flip you’re purchasing the house for some other person and you’ve got to make adjustments, changes, and enhancements according to what your target audience demands, expects, and can afford to take in the expenses of you adding. It’s of no consequence how gorgeous you have made the house if nobody that’s prepared to live in the area can afford your requested price when all is done and dusted. Four ) Remember this is a business situation and do not refuse to think about offers that will win you a reasonable profit because the profit is not as good as you’d like. A home sitting empty on the market accumulates carrying costs and is ready for all kind of tragedies. You need to get out and in as swiftly as possible in order that you can release your investment to move on to the following project. Entertain all offers seriously regardless of if they are not what you were in hope of. You never can say when one could be the best you are going to get. Five ) Don’t take it badly. Once more a home is a private thing to the general public. While you could have worked terribly hard picking colours, materials, flooring, and so on. Not many are going to share your preferences. Don’t divide prospective purchasers by attaching private feelings into the mix and getting annoyed because they don’t appreciate your difficult work. I do not like to add this nevertheless it occurs more than you could think when flipping homes. Six ) Spend as little cash as practicable while making bold changes. This is the simplest way to maximise your profits. You need the changes to be perceivable and effective.

Don’t overlook the value of curb appeal you want to put significant effort into improving the outside of the home as well as the inside because this is what folks will see first and the change that will ask them to check out what you’ve done inside. Tiny changes make an enormous improvement in the worth ( particularly the commonly acknowledged worth ) of a home. Make the essential changes and sell the house as fast as possible to bring in the very best profits

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