Monthly Archives: August 2011

Using a Buyer’s Agent

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In the real estate world, there seems to be a never ending list of brokers and agents that can help you out with the buying and selling of property.  It is very common to use a real estate agent to help you sell a property but what about when you are buying?

At first, it might seem a little crazy to hire someone to purchase a property for you, especially if you are paying them a fee or commission.

But can a buyer’s agent add value to your purchase?

Top Property Investing Forums

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This website is just one small resource available to the thousands of property investors out there.  However, if you get stuck or want to ask questions, then using one of the many property forums out there can help you out.

Why Join a Forum?

Well for one thing, since it is mostly anonymous, you need not feel embarrassed or hesitant at asking any question you like.

Participating in an online forum puts you on a level playing field with many experts in the industry and allows you to get quick answers for issues that you are having in your investing career.

Buying Investment Property Interstate

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It is common for the average investor to want to buy an investment property not too far from where they live.  There are many reasons for this, one being convenience and another being a sense of security of being able to drive past their investment now and then.

That’s not a bad thing and I’ve certainly done this myself.

But just because you may have more knowledge of your local market, does not mean it’s a good place to invest.  Just because you want to (or need to) live in that area that does not mean other people want to as well.

Flipping Real Estate

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In general, flipping is buying something and reselling it for a higher value.  When it comes to real estate, this is also true and normally requires a renovation to get the higher resale price.

If you don’t quite follow, let me break it down:

 

  1. You purchase a dumpy or run-down property
  2. You fix it up, renovate and improve it
  3. You put it back on the market after fixing up for a higher value (the flip).

The idea is to make a good profit in a relatively short period of time.

What are Investment Wraps?

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The term wrap refers to a property investor who buys a property, using a mortgage and then on-sells the property to someone else and then providing vendor finance to the new buyer.

Sound confusing?

It might at first, but it’s not that complex of a strategy.  You see, some people out there want to buy a property to live in but for whatever reason, cannot secure finance for themselves.  They might be a former bankrupt or just have not saved enough deposit.  The reason isn’t too important.

Using a Mortgage Broker

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Researching the type of loan you need to get to buy an investment property can be a time consuming task, especially when you don’t understand all the features and restrictions contained in the product.

Mortgage brokers solve this issue by becoming experts on the product offerings from all of the major lenders and then recommending the appropriate product for you.

How to Choose a Good Location for Your Investment Property

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Most of us have heard the old adage “location, location, location” when it comes to buying a good property that will grow well over time…but it’s a bit vague to base your investment strategy around this saying.

They are right in saying that the location is probably the most important factor, although you do have to buy the right type of property for that location and also the right property for your own portfolio.

But for now, let’s concentrate on why location is so important.

How Much Property Do I Need to Retire With?

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If share markets make you nervous with their volatility, then investing in property is a valid alternative for building a retirement income.

And let’s face it, money in the bank experiences very little growth after you take into account inflation and income taxes.

But what are we aiming for when building a property portfolio?

It is important to set goals when investing in property and then choose a proven strategy that will help us achieve those goals.

Using a Home Equity Loan for Investment

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A home equity loan, or line-of-credit loan (LOC), is a facility set up so that you can draw down as much money as you need up to a certain limit that’s been agreed with your loan provider.  You need to make interest only payments on the balance of the equity loan, but you do not need to pay off the principal amount.

Investing in Apartments

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It’s a common dilemma for investors as to what type of property performs best in the long term.  Houses, apartments, offices?

Alot of people believe that houses always grow better than apartments because they have a greater land value.

It is true that a house generally has a larger land component and that it is the value of the land that increases over the years, whilst the physical property itself depreciates (loses value).