Do I Really Need a Realtor to Buy a Home?

Do I really need a Realtor® to buy a home?

As a full time Realtor®, I get asked this question all the time.  It’s a great question after all.  With all the information so available online, many people believe they don’t really need an agent to purchase a home.  There are certainly an ample number of stories of buyers who „go it alone“ and do perfectly well purchasing without representation.  Unfortunately, there are many more stories of buyers making huge mistakes because they didn’t initially see the need to have a Realtor® represent them.  If you’ve found yourself pondering this same question, here are a few reasons you may want to at least consider hiring a professional Realtor®:

1)          Code of Ethics   

I hope you noticed that I said Realtor® and not real estate agent.  There is a difference.  All Realtors® are licensed to sell real estate as an agent or broker, but not all real estate agents are Realtors®.  In order to display the Realtor® logo, we must be members of the National Association of Realtors® and pledge to follow a Code of Ethics.  This code establishes a level of conduct that is higher than ordinary business practices or those required by law.  Only about half of all licensees are Realtors®.

2)          Experience

You don’t have to know everything there is to know about buying real estate as long as you hire the right person.  Most Realtors® specialize in a certain part of town or in a certain type of real estate.  For example, some agents work with first time homebuyers, or the condo market or luxury homebuyers, etc.  You get my drift.  Pick a Realtor® that knows the market and earns their living working with clients in real estate.  You will find that your Realtor® may not know everything, but they will know where to find out any information you need.

3)          Neighborhood Expert

Realtors® have access to all kinds of information about neighborhoods.  Not only can we find comparable sales in the area to insure you are not paying too much for the home, we can usually find out what kind of upgrades those homes had and if any contracts fell through during the process.  I talk to fellow Realtors® all the time about market trends and houses currently on the market.  We can also guide you to other sources to find out crime statistics, demographics or information on schools.

4)          Price Guidance and Market Conditions

Contrary to popular belief, we do not provide the suggested selling price or tell buyers what to offer.  Having said that, we do have a vested interest in seeing that the house sells.  We can do a market analysis and determine how long homes in the area have been on the market, what the ratios of list-to-sold prices have been or even the price per square foot if needed.  All of this information will have a big impact on what you as a buyer ultimately decide to do.

5)          Networking

Realtors® tend to have a large network of professionals they can refer that will assist you with obtaining financing, home inspections, pest control, minor repairs, etc.  Typically, these are professionals with whom the agent has a history and feels comfortable recommending.

6)          Negotiating Skills

Unlike most buyers and sellers, Realtors® can remove themselves from the emotional aspects of the transaction.  We use this skill every day in a variety of situations and it’s our job to maintain the level head in the deal.  In addition, we are bound to keep your information confidential which enhances your negotiating position.

7)          Paperwork

Take a look at any folder being carried about by a Realtor®.  It will be somewhere between 1 inch and 3 inches thick.  This folder contains all the executed contracts, amendments, disclosure statements, exhibits, termite letters, inspection reports, instructions to closing attorneys and financing information for a single transaction.  One omission could land you in court or allow the deal to fall through with no consequences to the offending party.

8)          Post Closing Questions

No matter how smoothly a transaction is, there may still be questions that come up weeks or months after the closing.  Any Realtor® worth their salt will be available after closing to point you in the right direction for getting your questions answered.  We do it to maintain a relationship with a good client for referrals and future business and we do it because it’s the right thing to do.

Well, there you have it.  Eight reasons for selecting a Realtor® when buying a home.  Just remember that real estate is what we do all day every day. 

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Tracy Anderson

French Property market update – April 2009

The last market review published by the Fédération Nationale de l’Immobilier (FNAIM), which is the French National Federation of Real Estate Agents, confirmed the general trend with price reductions during the 1st quarter of 2009 but emphasise on the fact there is no risk of a property crash.

According to an internal survey carried out by the FNAIM (260 estate agents participated to it), their turnover for the 1st quarter of 2009 is down by an average 30% compared to the 1st quarter of 2008. An article published in the French newspaper „Le Monde“ (mentioning the FNAIM market report and a report from the French notaires) indicates that the notaires activity in 2008 decreased by 20% compared to the previous year. The whole resale market decreased by 17%, from 802,000 in 2007 to 667,000 in 2008. New build sales dropped by 37.6% (79,400 in 2008 against 127,300 in 2007).

As a consequence, the major French property developers decided price reductions on most of their developments during the 4th quarter of 2008 and the 1st quarter of 2009 by 10 to 20%.

The FNAIM mentions that the French government took several actions to revitalize the
French New Build market but haven’t put in place significant actions for the resale market. This can be easily explained by the Notaire figures previously mentioned. Thus, the recent tax incentives dedicated to French taxpayers such as „Loi Scellier“ have boosted the
French investor market. It can be noticed by looking at the property developer quotations on the Paris stock exchange such as Nexity which has increased by 76.22% since 01st January 2009. It also explains why it is proving more and more difficult to get further discounts on New build and Off plan properties in France.

The resale market:
The financial earthquake and the brutal degradation of the global economy had an impact on the resale market, but not comparable to the one seen in the UK or the US. The number of transactions carried out by estate agents dropped on average by about 25% whereas the end of the price rise was favourable to the solvency support of the demand (+1.5% on average each year between 2005 and 2007) and compatible with the support of high level of activity, close to 700.000 transactions per year.

The property market, a slow price decrease, but no risk of a crash
Without surprise, decrease in price of resale properties was confirmed during the 1st quarter of 2009, on the apartments (- 0.4%) and houses (- 1.7%). However the decrease has been less sharp as a whole (- 1.0%) that those recorded within the 3rd quarter 2008 (- 2.9%) and the 4th quarter 2008 (- 6.5%). The transactions carried out during the 1st quarter 2009 were concluded at prices 9.8% lower compared to the sales realised during the 1st quarter 2008.

In the countryside, declines that occurred in 2008 are reflected in the prices: -7.7% and -6.1% respectively to the East and West part of France, -6.4% in the South-West, -8.8% in Centre and the Alps, -11.2% in Paris Ile-de-France and -13.3% in the South-East. With the image of the price evolution recorded on the Parisian market (- 4.9% over one year), there is no doubt that much of sellers have now agreed to moderate their asking price.

According to the FNAIM survey, 1 out of 2 sellers in France is now ready to negotiate his asking price with an average reduction of 14%. One of the reasons comes from the fact that the properties stay longer on the market: 5 months on average in 2009 compared to 3 months at the beginning of 2008. But more and more professionals now believe that prices have reached a low on the
French Property Market and hope to see the end of the tunnel pretty soon, especially with the improvement of the solvency of French buyers.

The solvency of French buyers is improving
The recent interest cut realised by the European Central Bank (down to 1.5% in April 2009) has contributed to ease the lending market. In France, people can now easily get a monthly repayment mortgage at 4.25% when it was about 5.15% in November 2008. And most importantly, the recent price reductions contributed to improve the solvency of French buyers. The solvency indicator has been increasing by +5.2% on the 1st quarter 2009 compared to last year.

The impact of price decrease by 10% and of a fall by more than 60 points of base interest rates deserve to be appreciated, because these two combined falls make it possible to reduce the rate of effort of the households of about 5 points. Thus, one mortgage refused in the 1st quarter 2008 because of a rate of effort too high, is 35% more likely to be accepted today, taking into account conditions prevailing on the market!

In other words, it’s becoming easier for French people to get a mortgage and this has already brought some dynamism to the market.

2009 Forecast
These last price reductions can only be welcomed by the property market. The combination of prices reaching a low on the French Property Market, sellers ready to negotiate the asking price with an average reduction of 14% and the imminent return of French buyers on the market thanks to the improvement of their solvency, it would not be surprising to see the market picking up sooner than expected by anyone.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Matthieu Cany

How To Sell It Yourself Versus Paying A Realtor

Almost every homeowner considers the possibility that they could go it alone and sell their own home, in order to save on real estate commissions. Selling a home without professional help is often a quick path to significant savings, because paying commissions to real estate agents is expensive. The thing to determine, however, is whether or not that expense is justified and whether or not it pays for itself in terms of convenience or higher sales price. Good arguments can be made for both choices – using a real estate agent or just going it on your own – but the important thing to do if you are making this kind of decision is to explore your options beforehand. Once you know the facts, you can take an informed and educated plan of action.

„For Sale by Owner“ is a do-it-yourself project that certainly can save you a serious chunk of change. The broker commissions on real estate sales vary from one jurisdiction to another, but are generally in the 5-7 percent range. Hire a pro to help you sell a home for $225,000 – which is close to the median price of a home in the USA right now – and chances are you will pay somewhere in the neighborhood of $12,000.

And if you are planning to sell yourself, the biggest advantage you’ll have compared to 10 or 15 years ago is that you can now participate in the official Realtor property database or Multiple Listing Service (better known as the MLS). For a set fee, you can upload a detailed advertisement along with photos of your property to the MLS and gain immediate computerized access to potential buyers, to let them know that your property is on the market. With that kind of exposure, you may not have to spend any other money on advertising.

You will have to go through a licensed Realtor in order to list your property in the MLS, and pay fees associated with the service. But if you’re selling a house, the MLS is worth every penny. Step it up a notch by using an „upgraded“ arrangement such as a „discount broker“, and you can get additional benefits and services. For example, you can sell your own home but still hire a so-called „discount broker“ to help with the nitty-gritty details of the transaction. Real estate agents who hire-out for part time work will offer you a menu choice of various professional services, for things such as making appointments, conducting tours of your home, and writing legal contracts for purchase offers. You do part of it yourself, and pay a pro to do the rest.

One thing that many people forget is that if they set out to sell their home by themselves and it doesn’t work out the way they planned, they can also exercise their option to hire someone else to do it for them. So not matter what you decide to do, it doesn’t hurt to first experiment and find out first hand what you are comfortable with and capable of doing.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Geraldo Bowers

Real Estate Greater Noida

Greater Noida is a known planned township situated in proximity to the India’s Capital city, Delhi. As such, the area falls within the NCR region and is adjacent to Noida, the first industrial township in Asia. It is a township developed on the outskirts of NOIDA, is mainly to cater to the phenomenal influx of population into this region in the last few years.

Greater noida is being touted as the next big real estate destination .it is coming up with the number of innovative plans which has given a push to real estate market. Greater Noida will soon dethrone the king of real estate. The greater noida authority is revamping the civic amenities and other infrastructural facilities. Much awaited projects like the international Airport at jewar and 160 KM long Noida-Agra Taj Expressway will help in the fast-track growth of the twin cities.

What adds on to real estate value of Greater Noida is its proximity to Noida and also its pollution-free environment indeed. One of the most significant sector gaining high market value in the commercial phase of into view ,is the IT and ITES sector.

Greater Noida is also establishing itself as an attractive and value proposition for commercial property, most valuable property estate and will be the top most in the real estate industry. A lot of quality constructions are expected to be coming up in the residential market of Greater Noida.  Adding to the living standard are improved infrastructural facilities like wide roads, proper underground cabling and excellent drainage system. A number of shopping avenues featuring world class brands and outstanding services also make Greater Noida an attractive destination for investors. Adding more to its investment features are better connectivity like plans to build an international airport and connecting by Metro Railway. Undoubtedly, Greater Noida is riding on growth wave and promises to set new benchmarks.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Aakanksha

How to Become a Real Estate Agent in Ontario

There is a variety of career paths in real estate to become a licensed real estate agent in Ontario. These include property management, Residential Property, Fix and Flip, Commercial & Industrial, Condominium, Student Rental, MLS Listings and investment real estate, farm or acreage real estate and business brokering. Enough motivation and effort is necessary but candidates who meet all the basic requirements for a license can easily become real estate agents in Ontario.


Basic Requirements

1.       You must be at least 18 years of age.

2.       You must have Canadian high school diploma or equivalent.

3.       You must check the course requirements of your resident province; to become a licensed real estate agent, required courses depend on the province in which you live.

Become Licensed

1.       First of all, complete the Real Estate Associate’s Program (REAP) and the courses offered online by the Real Estate Council of Alberta (RECA) to be eligible for a license in Alberta.

2.       Start searching for work with a broker, who is responsible for applying for the candidate’s license and registration from RECA.

3.       Undergo an investigation into your background, per British Columbia’s Real Estate Services Act. Individuals with summary convictions will not be granted licenses until two years after paying retribution.

4.       Now it is time to choose and pursue your own real estate career path in British Columbia and pursue the appropriate licensing course of study from the University of British Columbia (UBC) Real Estate Division.

5.       You have to complete a 15-day licensing course in Nova Scotia and you must have to get the 70 percent of the exam to pass. If you don’t get this percentage in three tries, do it again.

6.       Now you have to complete the „Application for a Salesperson“ form and a Schedule „A“ and have your broker sign the forms. Submit the forms, along with all required documents. These include your exam letter, a copy of your birth certificate, your driver’s license and the appropriate fees to the Nova Scotia Real Estate Commission.

7.      Now it is the stage to complete the Real Estate Council of Ontario’s pre-registration courses, administered by the Ontario Real Estate Association.

Tips & Warnings

1.       Take the Real Estate Sales ability Test in British Columbia. While it’s not mandatory, it helps to determine that you are suited to real estate work before you spend money to become licensed.

2.       Visit the Real Estate Institute of Canada website to find out the contact information for the various regional leading bodies in Canada.

3.       You can’t have a criminal record in the five years before applying for a real estate license in Quebec.

4.       Applicants must not have committed any offense against the Real Estate Brokerage Act, or an act governing real estate brokerage outside Québec, in the five years earlier to applying.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Rhys Trenhaile

Real Estate vs. Stock Investing

Investing for big gains is a game of buying low and selling high.  You don’t make the big bucks in real estate investing by collecting rents, or in stock investing by receiving dividends.  Price appreciation, or rising prices, is the key to big profits in both arenas.  The difference is that in one game the BUY decision is of greatest consequence, and in the other the SELL decision usually determines success or failure.

In real estate investing the BUY decision is the vital half of the equation, and in stock investing the SELL decision determines whether you win or lose.  How to invest in real estate amounts to buying a property „right“.  How to invest in stocks profitably boils down to knowing when to sell.  Let’s take a look at these two distinctly different investments, starting with real estate.

In real estate you need to know what price to pay, where to buy, and how to best finance a property.  This requires knowledge of local markets, as well as skill and experience in arranging deals and getting favorable terms when financing them.  A bad decision in the buying process, which includes all of the above, can result in problems that have no good solution.  This is especially true when a bad economy is accompanied by a bad real estate market.

Here’s an example of why the buy decision is so important in real estate investing.  Put another way, here’s what can go wrong in real estate.

As real estate values are soaring in some parts of the country, Matt buys a property for $300,000 in a hot real estate market.  He puts little down to maximize the effects of  financial leverage.  His goal is to sell the property a couple of years later for $400,000 or more.  He plans to rent it out in the interim.

The economy falls into recession and the real estate market turns sour.  Properties aren’t moving and prices are falling.  Two years after his purchase, properties comparable to Matt’s can’t find a buyer for $200,000, and he owes almost $300,000 on his mortgage.  He also has a mortgage on the home in which he lives, and can no longer afford to make payments on both.

Matt is between a rock and a hard place, because he did not buy right.  Financial leverage worked against him, and his real estate’s lack of liquidity makes it impossible to sell without negative consequences.  In the future, someone who knows the ropes will likely make a wise buy decision and take control of his property.

In stock investing you can not get heavy financial leverage, but you have high liquidity and can sell quickly and easily for as little as $10 in commissions.  Knowing how to invest in stocks requires that you learn the stock market game.  In this game, you must know when to sell. 

If you buy a stock that turns sour, you can quickly sell and take a small loss.  Unfortunately, most stock investors never learn the game.  Here’s an example of what can go wrong in a stock investment.

The stock market is hot, and Drew buys 1000 shares of JKL at $20.  A year later it’s at $30.  Then, economic bad news starts to dominate the headlines and the stock market reacts by falling.  Drew watches as his stock falls to $25…$20…$15 … over the next six months.  In that period of time the stock market was down about 15%, but JKL was down 50%. 

Drew tells himself that when his stock returns to $20, where he bought it, he will sell.  A year later JKL is at $5 and still falling.  The stock is selling for pennies within weeks, and then stops trading.  Drew just lost 100% of his $20,000 stock investment.

Knowing how to invest in stocks is mostly a matter of knowing when to sell.  Drew did not make a bad buy decision when he bought his stock.  It went up 50% the first year.  His problem was that he did not know when to sell.  While the rest of the market was sliding, JKL was falling out of bed, and Drew ignored it.

Drew should have sold as soon as he realized that his stock was performing worse than the stock market in general.  He could have avoided a loss for only $10 in commissions.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by James Leitz

Know About Real Estate Agent Commission Rate

If you are involved in buying or selling the property, one of the most common factors that you need to focus is real estate commission rate. However, many people only know about how much these agents offer and have no clue how this rate works. Before making any deal with your agent it is important to understand the commission rate first.

How Much A Real Estate Agent Charge Commission Rate

Real estate commission rate can be negotiable and they vary from person to person. According to some reports, it is definite that the commission is lies in between 3% to 6%. The percentage of commission depends on the percentage of the sale price of the property. You can calculate this rate once the property is sold for the desired amount. Before the deal is completed between the buyer or seller a negotiated commission rate is decided. Real estate agents are compensated by the broker. For agents, broker will offer as little as 30 to 40 % of the total commission received. But, from this amount other fees like as promotion, sign rentals will be subtracted.

Listing Fees Of Agents

The agreement between a seller and the agent gives the required fees to that agent. For making a buyer agree to buy the property, it is understood that the seller has to pay a commission to the broker. This fee represents the percentage of the sales price and is a collective amount divided between the listing broker and the broker who brings the buyer. For a buyer’s broker agreement the named brokerage and agent represents the buyer. Seller will commonly pay commission rate to the broker. However, there are some buyer brokers agreements that include the definite clause that will recompense the brokerage for the fee which is due a smaller amount the amount paid by the seller.

Who Pays The Real Estate Commission Rate?

Rightfully it is the buyer who pays the commission. The reason is that the commission rate is associated with the sales price. In case the seller is not willing to sign an agreement to pay a commission, the sales price might have been reduced. Due to this factor, you need to make an appeal of buying homes through unrepresented sellers. Real estate commission rates are the lifeblood of the most real estate agents. They offer negotiated commissions and provide the work that is expected of them. For every real estate agent, it is important to work in right area, because of the fact that you will receive bigger commissions if you sell properties at a higher rate.  But, it may be difficult for a real estate agent to get work in areas where house prices are high. That’s why real estate agents must make sure to sell as much property they can so that they can get a good amount of real estate commission rate.

If you want to sell or buy a property through a real estate agent, make sure you understand all the terms and conditions properly. Also, read carefully all the terms describing the real estate commission rate that have you to pay for your agent’s services.

Things offered by Discount Realtor San Diego

Discount Realtor San Diego offer a flat fee listing, which means the broker lists your property on the Multiple Listing Service (MLS) for a set fee. However, make sure you still have to pay the broker’s fee which may lie in between 2.5 % to 3%. Discount realtors provide enough time for your property purchase and insert complete details like photographs and other information on the MLS.  These realtors simply market your property in front of prospective buyers. Along with these services, discount realtor San Diego assists in defining your own property criteria and refers you to lenders who are able to offer a preapproved financing letters that can maximize your negotiating position. Discount realtors provide different listings and show property that meets your search criteria.

Selecting a discount realtor San Diego is the ultimate choice for prospective homebuyers. The realtor will help in making the positive decision for buying or selling your home. Buying or selling your home is a very important decision because it involves a lot of investment and patience. So, don’t be in a hurry while making these decisions. Choose realtors for your property, it is vital to hire someone who is educated and trustworthy about the price and condition of the property and is well versed with current market situations.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by LJ Woodard

Recession or Recess of Real Estate Market?

Real Estate industry is talking on correction period all over India. Brokers, especially, are absolutely convinced that the market is set to fall. In many areas the property rates have already started falling. Accordingly, Goregaon, Malad, Mira Road, Vasai and Virar on western suburbs and Mulund, Bhandup, Kurla, Chembur and Govandi on central side have started stagnating the level of property prices.

Pune, Nashik, Noida, Jaipur, Bangalore, Chennai and Hyderabad are also feeling the cold wave in the property market. Reason for the same is related with hike in housing finance interest rates and unaffordable property rates.

Investors are, now, not buying and have stopped going in for more investments. Commercial stock is in the market for anything above the cost of investment. Practically, when no one buys, rates are stagnated at some particular point. That is what is happening today. The sale price has stopped further climbing up since there are no takers. Malls are worst hit. The recession started with them, while the exhibiting rates were much less then the actual investments made. Cash and Cheque portion of mall space deals are known to everyone in the trade. The market for commercial properties has already been started to correct its baseless pricing.

It may be a recess. For the time being, investors want market to show its actual colour. And after they sell off certain non moving stock, buying spree may start again afresh. It is also linked with the liquidity crunch in the economy and falling stock exchanges in the country. A lobby of investors does not want share market money to go easily from the real estate market. People who have invested in real estate from earning of share market wants an exit to pay off the liabilities created by them in the share market. Player in real estate market wants the rates to stop climbing up for some time so that they can capitalize on such panic sale. Big game plan is on the hands of few groups of individuals and few finance companies that have entered recently in the trade.

Builders, today, have already started to reduce its price everywhere in the country. Ready stock is still not available as the builders have already sold 30 to 50 % of his stock during under construction to investors. As the Investors want handsome returns on the finished stock while they do not sale in the open market but through the builder only. That stock again sold by the builders to the actual buyers by mounting another profit margin. Hence when the actual user buys the property, he has to pay investor´s hidden margins which change hands five times during the time of construction.

It is nothing but a recess for the players. The rates may go up by the second quarter of the next year 2009. Builders have holding capacity since the project is financed by venture fund people and Mutual funds are searching for the projects. The sale price will be certainly include the interest rates or Return on investment money (22% to 25% of total project). Land and FSI cost is higher and purchasing is already finished for the second rally of property market boom.

As in current market, liquidity has reduced and the funding by the PE firms or Mutual funds has mostly stopped and hence, the construction & launching of the project has just held up or been delayed by one to two quarters some time a year as well.

So in view of current market scenario, we can easily understand that the Real Estate market has effected very much with the recession of Economy.

For more details, please visit-

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Lokesh Goyal

Tips for Real Estate Investment in Nigeria

The state of the global economy is gradually picking up after a world wide recession. The economic meltdown, which shook western economies devastated investors, individuals and institutional alike. Its aftershock is still being felt all around the globe and also in emerging economies, Nigeria inclusive. Global investment recorded huge loses and investors had a hard nut to crack.

The Nigerian stock market once acclaimed as the fastest and the most profitable market in the whole of Africa; where every investor looked up to, was equally affected due largely to large scale dumping of stocks by foreign institutional investors and some other local factors.

Though the market is gradually picking up, many investors are still weary and suspicious of its growth. A large percentage has lost confidence in the market. While the harvest in the market was churning millionaires by the day, speculator and real estate investors were selling their properties and investments in real estate and mopping up shares and stocks.

However, with the lost of attention in the capital market, investors are steadily turning their focus to the more secure investment; real estate. Though real estate investment involves a high capital outlay, it comes with a less volatile and attendant risk as opposed to stocks and shares.

Some of the benefits of investments in real estate are as follows;

(i.)               It generates regular income for investors.

(ii.)             It creates wealth for investors and property owners, as capital value appreciates with time.

(iii.)           It provides a shield and security against mortgage and capital loans.

(iv.)           It adds to the housing stock and helps solve accommodation needs and demand.

(v.)             It contributes to private sectors housing development.

(vi.)           It help solves the financial requirements of distressed sellers.

(vii.)         It helps boost property tax for the government. (e.g. Lagos State Government, Nigeria)

Consistent and regular income from real estate investment are influenced by the following factors; location, housing and accommodation demand, type and purpose of use, facilities provided, etc.

In predominantly commercial centers, commercial and recreational properties are in high demand and as such, are good investments. Luxury and serviced apartments are highly demanded in Government Reserved Areas (GRA) and high brow areas with low density population, are also good investment options. (e.g. Ikoyi, Ikeja, Victoria Island).

The requirements for mini flats, 2 bedroom and 3 bedroom apartments as well as, community neighborhood shops are in very high demand in medium and high density locations. The supply and accommodation stock never really seems to meet the ever growing demand. It is important to note that medium range properties are better investment options as they are easier to be rent out. They are also easier to purchase, sell and re-sell.

Anybody can enter the in real estate market. An investor who wishes to engage in real estate investment (professionals and non-professionals) can do so in various ways, depending on financial capabilities. Investments can be a fresh development (i.e. virgin land) or purchasing already existing property, which can be enhanced to command current rent and capital value. I could also be to fill a prospective emerging demand. The investor who does not wish to be involved in the stress of physical building, development and management can invest through Real Estate Investment Trusts (REIT), co-operative societies or in real estate companies quoted on the stock exchange. (The prices of real estate stocks are relatively more stable)

Steps to take before making that real estate investment;

  1. Study and evaluate the value of the property, its location, neighbourhood, use, encumbrances, physical state and any incidental cost pursuant to its acquisition.
  2. Carry out a feasibility study, viability, encumbrances and any cost incidental to its acquisition. An EIA (Environmental Impact Assessment) report may also be required for some real estate developments.
  3. A very important step to consider is the engagement of consultants. Real Estate professional advisors are required almost at every stage for sound advice.
  4. All interests, titles, ownership, registration and documentation must be easily verifiable.

Real estate investment also has its pitfalls. The investor must be cautious about the following;

(i.)               Do not be carried away with the physical state, aesthetics or location of a property without considering its investment potentials and viability. A beautiful structure may on closer look and study sometimes be defective structurally.

(ii.)             The temptation or thought of reaping hyper profits or quick returns on investment should be avoided. It may have an unclear title or incomplete documentation or encumbered by litigation or ownership tussle.

(iii.)           Power of negotiation is important, if the investor does not have a real estate qualification or background, a professional Estate Surveyor or Appraiser should be engaged at a fee. This goes along way to secure his investment and help avoid huge loss due to faulty or hasty decisions.

Some of the best investment tips for the real estate and property investor though with caution are given below;

Offers from relocating sellers.

  1. Bank sales and foreclosures arising from property used as security for mortgage and loans.
  2. Fresh allocations from governments‘ housing schemes.
  3. Financial distress or difficulties due to failed businesses, loss of employment, downturn in seller’s economy (meltdown), protracted illness, accidents, natural disasters, etc.
  4. Joint owners or divorced couples willing to sell in a hurry.

High capital outlay, not withstanding, real estate is a sure and secure investment and values appreciates with time. Though there is risk in every investment, real estate is not an exception. If the investment steps are carefully considered and decisions wisely taken, the investors streams of income are sure of continually being reaped.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Patrick B. Akpan

Chennai Real Estate- Victim of Market Slump

Real estate in Chennai is on the verge of a crashing market, believes industry experts. Chennai property prices have seen an escalation of almost 200 per cent in the last few years. But with the global slump in the real estate industry Chennai real estate has also slowed down.

Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, „The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize.“

Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.

Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.

The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.

IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.

Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by George Gonigal

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.