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Archive for July, 2010

Real Estate Investing or Landlording?

Saturday, July 31st, 2010

Real estate investing is the classic wealth vehicle that has taken people from living hand to mouth to the pinnacle of wealth.

It’s the vehicle of choice because it’s accessible to all of us. Everone has a least rented a house or apartment, and most of us have bought a house. So knowing what it’s like to be renter or homeowner we have first hand knowledge of our customers when we set out to be real estate investors.

The classic real estate investing model is buy a bunch of houses, rent them out and in 30 years the mortgages will be paid off, the properties will have at least doubled in value, the rents will be twice what they were when you started … with no loan payment.

The goal sounds inspiring. Imagine having 10 properties you bought 30 years ago, each for $80,000, now be worth $350,000 apiece as a result of a average annual appreciation rate of 5%. You would have a portfolio worth about $3,500,000. Monthly rents, on the low side, of $1,200 per house would give you gross monthly rents of $12,000. After T&I you probably put $9,000 in your pocket.

I think you would agree this is an extremely modest goal, but what a payoff!!

What a payoff indeed … for those who actually stick with it. You see there’s a problem with the above scenario, and that is the early years are really tough.

Cashflow is slim, expenses are high, and most investors who take this on don’t make it through.

They run out of cash.

The short-term solution is to change your focus from buying and holding to quick-turning houses for cash. Quick-turning houses, getting them under contract super cheap and flipping them to another investor for $5-20,000 or more will take care of your cashflow needs today while you hold your rental properties for long term growth. This is great … money, cash!

But you are not out of the woods yet.

Your new short-term problem is management. If you are buying houses to hold for the long term you must be prepared for the fact that you will be managing them yourself, whether you take on that job as an individual or create a management company to do it. The fact remains that at some point your occupation will change from real estate investor to landlord.

And I’m afraid gentle reader, landlording is dirty, smelly business. One you do not want to be in.

There are worse things in life than being a landlord, most definitely, but that’s not why you got into real estate. You got into real estate because you want the big dollars. The really big ones. The ‘buy your own island’ big dollars, the ‘house on each continent’ kind of dollars. The nine figure net worth.

Didn’t you?

That net worth is available, in fact it’s waiting for you to claim it, but you won’t achieve the growth necessary to get there buying single family homes. As a growth vehicle they are very inefficient.

From a real estate investing standpoint the purpose of a single family home is to give you experience doing deals, and to take care of your immediate cash needs.

After you’ve paid off all your debts, have 12 months living expenses in the bank, and have a kitty of say, $100,000 to $200,000 there isn’t much further use for single family homes.

Unless, of course, you want to be a landlord.

As soon as you are debt free and have some starting capital you should move straight into buying apartments.

There is all kinds of leverage to be achieved by changing your wealth vehicle from single family houses to apartment buildings.

- from a value standpoint when buying apartments you are dealing with much bigger dollars, so as the years go by, you make more through appreciation.

- apartments have a much higher rent per square foot compared to houses, so property management can be brought in take management out of your hands in a cost effective manner.

- apartment buildings make sense from a business standpoint so it is no difficult to attract partner capital. – there is an abundance of apartment financing available from lenders up to 80% loan to value.

- there are many profit centers, like repairing units and increasing rents, filling vancancies, that can be capitalized on to capture upside value.

Also, because apartments are not reliant on your personal attention and can be effectively managed by property management companies you are not restricted to buying in your own local market.

By becoming aware of market cycles and tracking them closely, you can buy quality properties in any market in the US at the bottom of a cycle, and ride the appreciation to the top of the market, where you sell (or exchange out) and take huge profits.

Of course, providing you live in a market (like CA) that appreciates rapidly in an up cycle, you can achieve this with single familiy houses too. But which property would you rather have appreciating at 15% a year, a $300,000 house, or a $10,000,000 apartment building.

After 10 years a $300,000 house will turn into $1.33M. Nothing to sneeze at. But during the same 10 years in the same market a $10M apartment building will turn into $44.4M.

Which would you rather have?

It’s an easy choice, and one you simply need to make.

Real Estate Market in Japan

Friday, July 30th, 2010

Japan is regarded as the Asia Pacific region’s economic driver, and hence boasts of a highly matured real estate market. Just as the United States has in use the Multiple Listing Service (MLS), the Japan has in use the Real Estate Information Network (REINS), which in turn was introduced in 1999.
In Japan, the real estate covers everything from residential properties to commercial and industrial properties. Included in the residential properties are single detached houses, high-end apartments, and excellent condominiums and townhouses. The commercial property market in Japan is considered the largest, after that of the US. There are a plethora of real estate properties that are spread across the major cities as well as prefectures of Japan.
One of the specialties of Japanese people is that they always like to possess new items, no matter it is car or electronic items, and hence no exception in the case of real estate properties. In other words, brand new real estate as well as properties of less than five years old is of special demand in Japan.
Real estate investment in Japan falls under two categories such as investing in real estate properties for private purposes and acquiring real estate properties solely for investment purposes. Included in the options that are most suitable for private purposes are brand new houses as well as condominiums, brand new apartments, second hand apartments with lowest rate of depreciation, and second hand houses. Options for investment purposes include both brand new and second hand apartments and houses.
The prices of property vary depending upon the nature of the property as well as the place where it is located. For instance, purchasing a new apartment or house in such sought after areas as Azabu, Akasaka, and Aoyama in Tokyo would serve as an excellent investment and could undoubtedly fetch you good returns in the form of rent. Likewise, investing in properties located in such hotspots of Central Tokyo as Roppongi, Nogizaka, and Atago, can also fetch you good profits.
Roppongi is a highly sophisticated area packed with superb housing and shopping options, restaurants, and nightclubs. No wonder why this area is popular among the foreigners. Buying a second hand house or apartment and renovating it in good condition could also yield good profits. Further, for those looking for cheaper options, it would be better to buy a property in remote areas like Hokkaido and Tohoku as well as in prefectures including Yamaguchi and Shimane.
A real estate property in Japan can be acquired by anyone. However, it would be more convenient to those investors with a long term visa. It would be even better if an investor has a permanent visa. The prime reason for this is due to difficulty in availing for loans. It is quite difficult even for a Japanese to avail loan in the country. Hence, it would be even chaotic if a foreign investor does not have proper visa and job. However, a foreign can avail loan, provided he satisfy certain conditions such as,
- If he has been living in the country for specified period and can speak the Japanese language
- If he is married to a Japanese and has children going Japanese schools
- If he has a stable job in Japan
- If he possesses a good credit history
- If he is able to provide valid reason for his stay in the country
However, an investor can easily acquire a property in the country, if he has money suffice to invest in a property in Japan.
In Japan, the laws and regulations in connection with buying and selling of real estate property is managed by the Legal Affairs Bureau, under the administration of the Ministry of Justice. According to the Japanese Civil Code, on the registration of a real estate property, the rights pertaining to its ownership or leasehold would be legally established.
A plethora of realtors as well as real estate firms are now in the scenario in order to help you find a property in Japan that goes according to your unique requirements. They provide a range of services such as market analysis, consultation, project management, asset evaluation, property management, and valuation and advisory services. In some instance, these firms even render the services of professional attorneys in order to verify the authenticity of real estate documents.

How To Purchase Phuket Real Estate

Thursday, July 29th, 2010

One of the most obvious things most people don’t think about is buying direct from the developer directly and not using a local Phuket real estate agent. Most local agents are selling either their own Phuket properties they developed on their own or some other Phuket Apartments or Phuket Condominiums that the agent is getting extra commission on. They sell the Phuket properties they make the most money on.
Some agents do know the local market but are in the business of buying low and selling high. I remember going to see an agent in town when I was new in the Phuket real estate game. He showed me three different Phuket properties. All three I found out later he or his partner owned. So remember you will get the best deal if you go to see the developer directly and save.
Buy Phuket properties that developers will make a deal on.Most Phuket property developers are trying to make a big name for themselves. The only way to do this is to have successful Phuket properties in their portfolio. This means the developer needs to complete a Phuket apartment or Phuket Condominium project on time and that the customers who bought in on pre-construction are happy with their purchase.
Knowing this will allow you to save big because you know you can make a great reference for the developer. By letting the Phuket property developer use your name as a reference he may give you some extra discounts that a normal customer may not receive.
Buying Phuket houses or Phuket villas in Phuket because you will spend your vacation time fixing your Phuket property purchase. When you purchase a Phuket apartments or Phuket Condominiums, the project usually has a rental program and a maintenance program in place. Owning Phuket real estate can be great, but you have to invest smartly.
Check local Market prices on Phuket Apartments in the area of your interest. Know what the local prices are selling for in the area. Make sure to compare apples to apples however. Some Phuket properties and very little Phuket Apartment common area and others have as much as 25%. Knowing this will help you evaluate the Phuket property you looking to purchase.
I found the best way to do this is looking at the price list sheets and either downloading them or printing them off. Put all the Phuket apartment or Phuket Condominium projects you like side by side and compare them. Also look in the local newspaper for Phuket real estate news events and Phuket apartments or Phuket properties promotion shows.
Even small islands like Phuket will also have Phuket real estate or Phuket apartment shows every few months. This is a great place to pick up new information about projects featuring Phuket apartments or Phuket Condominiums that are just starting pre-construction or are in the building phases.
Phuket apartment or Phuket Condo’s – Which one is better?
We could write a whole article on the differences between Phuket Condominiums and Phuket Apartment projects. The big difference is in the actual ownership of the Phuket property. Some Phuket Apartment projects offer only a 30 year lease. Most Phuket Condominium projects will offer you a freehold title. You want to be sure you understand what title you Phuket real estate developer if offering you.
There are special laws governing Phuket Condominium projects where the foreign owner can actually own up to 49% of the project freehold. Naturally, this is the best.

Clean and fresh water for your drinking water

Thursday, July 29th, 2010

Every day, human beings need water to drink. This is because the human body’s need for water is very high because the human body is the dominant component of the liquid. To that end, the human need for water is very high. For this reason, the rain water that falls from the sky can be used as drinking water for humans. So what should you do to get the rain water can be drunk? You can get his answer after you buy a water filter. Before that you can do compare drinking water filters to get a quality product and provide tangible benefits for you. Lots of water purification products in the use of rain water on the market. For that you can more carefully before you buy it. You can buy it online and get the best water purification products.

Do drinking water filters compare very important for you to get good product quality and gives maximum results for you. Only water purification of the original product that can give you the benefit of rain water. You can take advantage of the rainy season as a venue for water harvesting. With this tool you have water filters can help you in getting clean drinking water. With the water purification process that is processed during the 24 hours to make rain water will be cleaner and deserves to be drunk. In addition, the resulting water quality after the refining process has also been clinically tested safe to consume anyone. Prove yourself after you wear it during the rainy season.

Punta Cana Real Estate Punta Cana Apartments From $88,000

Wednesday, July 28th, 2010

Welcome to La Costa Destinations International Realty (http://www.GoPuntaCanaRealEstate.com), your full service source for Dominican Republic, Punta Cana Real Estate and Punta Cana Apartments For Sale. Headquarters located in Punta Cana Bavaro, the most popular and fastest growing tourist and investment area in the Caribbean and representatives in USA, Puerto Rico, France, Russian and Spain. We offer exclusive homes, villas, apartments, condos, land and commercial opportunities on or within walking distance to the beach and golf courses. The Dominican Republic, specifically Punta Cana, has become a haven for vacationers and investors who are seeking a beach chair, a cold Presidente beer, a good read and high returns on their investments. 

Punta Cana Real Estate has experienced tremendous growth over the past 10 years.  Low prices, low taxation and a solid, growing economy making it a strong investment location.  Punta Cana is one of the hottest spots for investing in the Caribbean with investors from around the world looking for high return on investment along with steady rising rates of appreciation. The options are endless: apartments, condos, luxury homes, beach-front properties, vacant land, and more.

The Dominican Republic has often been labeled the best value for money real estate destination in the Caribbean, but this is not the only appeal.  The DR is the second largest island in the Caribbean which offers buyers a rich diversity of natural beauty.  White sandy beaches and crystalline waters, to cool moutain breezes.  Punta Cana and Dominican Republic Real Estate offer equal diversity to suit all tastes and all at affordable prices.

Here are just a few reasons why Punta Cana and the Dominican Republic is a great place to Live, Play, and Invest:

Oscar de la Renta, Julio Iglesias, Mikhail Baryshnikov, Shakira, Bill and Hillary Clinton, Ricky Martin, are just a few of the famous who visit and make Punta Cana their home. It’s all about the beach, undeniably breathtaking with tall swaying palms scattered along 35 Km (22 miles) of some of the whitest and finest coral sand beaches in the world.  Ocean front golf courses by Tom Fazio and P.B. Dye, a Six Senses Spa, 5 Star hotels and restaurants, and the Punta Cana Ecological Foundation make this exclusive community the perfect retreat.

Punta Cana, named after a local cape, is a region in the easternmost tip of the Dominican Republic. Covering about 4,200,000 m2 (1,100 acres), the region is home to a coastline of sandy white beaches and to a town of the same name.

Located in the province of La Altagracia the region borders the Atlantic Ocean to the east. To the north, it borders the village of Bavaro and El Cortecito Beach. Areas bordering Punta Cana include Cabeza de Toro, Cabo Engaño and, further west, Juanillo. North to South the main beaches are: Playa Arena Gorda, Playa Bavaro, Playa Uvero Alto, Playa Macao, Playa El Cortecito – all north of the cape – and Cabeza de Toro, Cabo Engaño, Punta Cana, Juanillo – south of the cape.

The entire Bávaro-Punta Cana region entered a fast-paced growth phase in early 2004. With the establishment and initiation of foreign investment projects such as Cap Cana and The Westin Roco Ki Beach & Golf Resort, the development of new marinas, resorts, and housing complexes have been developed.

For the past 10 years foreign investment has had sustained levels of consistent growth, turning into one of the most important economic sectors for the country, and responsible for employment in many different sectors of the local economy.  Bavaro Beach, Punta Cana, is the fastest growing tourist and investment area in the entire Caribbean by U.S. citizens, Canadian and European investors.

Needless to say, Punta Cana Real Estate many say is highly under-valued.  In November 2008 pre construction apartment prices started at $88,000 Punta Cana Bavaro an increase of 18% from November 2007.  There are still real estate deals in this great seaside community but you need a local market expert to help you.  La Costa Destinations International Realty are experienced real estate professional who have many years of home buying and selling experience in the Punta Cana area.  For true local and knowledgeable service in the Punta Cana Real Estate market, contact La Costa Destianations International Realty (http://www.GoPuntaCanaRealEstate.com),  Info@GoPuntaCanaRealEstate.com 829 341 4532 Dominican Republic  866 605 9473 Toll Free USA PR or 305 261 2666 USA.

Dominican Hospitality & Market Knowledge with American Business Standards.