Types of real estate investments and how to be smart at it.

Real estate investment is the most lucrative option for people who want to use the extra bucks lying in their savings accounts and want to get bigger returns with the invested money. Real estate investment is not as simple as it seems. If studied deeply, this form of investment has developed over the span of 50 years and has become more complicated than investing in bonds and shares. There are many types of real estate investments.

  1. Investing in rental property:

This is the basic and simplest form of investment. An investor buys a property and gives it up for rentals. The owner is responsible for the mortgage payments and all the other additional costs that may incur. Ideally the rent is sufficient enough to bear all the costs plus some extra cash is left for the owner as a profit. The cycle continues until the mortgage term gets matured and the property finally becomes the owner’s. He may the sell the property on profit or keep it on rental and enjoy the monthly rent income.

  1. Real estate investment groups:

Real estate investment groups are like mutual funds. This is ideal for people who wish to invest in real estate but cannot afford to handle the hassles that come with it. The real estate investment groups build complexes. An investor can purchase a unit or number of units. The real estate investment group handles all the messy tasks if maintenance, dealing with legal issues and tacking the tenants. All an investor has to do is pay a decided fee to the group for it.

  1. Real estate trading:

This is the risky side of real estate investments. The investor buys a property only with a motif of selling it after a short time on profit. This is also called flipping. The investor doesn’t spend at all on improving the state of the property. He invests in a profitable venture and hold it for three to four months until the property can be sold out on better rates.

There are real estate traders who invest in property in a different manner. They target property with an average value and then renovate it. They sell the renovated property at greater profits.

This gets very risky if unfortunately an investor gets stuck with a bad property and cannot offload it. He might incur great losses as these investors usually don’t have enough money at hand to pay for mortgage and other expenses.

Investing in commercial property

Real estate investment can be made into either a residential building or a commercial property. Residential property usually refers to single home units or condos and likes and doesn’t promise as good returns as the commercial property. Commercial properties are:

* Retail buildings

* Mixed use buildings

* Warehouses

* Office buildings

* Industrial buildings

* Apartment buildings such as Avia Condos Amacon Developments

There are a lot of advantages and positive reasons for investing in a commercial property.

1. Income potential: commercial buildings promise a higher annual return than the residential rentals. Depending on the area, a commercial property on rentals may return upto 6% to 12% higher than the purchase price. This figure is much higher than the residential rentals that promise a return of somewhere ranging from 1% to 4%.

2. Public eye: the commercial property owners and tenants of retail buildings on rentals have a common interest of keeping the property maintained as it show cases their business.

3. Limited working hours: the businesses shut off at night which means you can rest at night. As compared to residential rentals, commercial rentals are less hassle. You don’t have to worry about a leaked pipe or a defected lock in the middle of the night if you have invested in commercial property. The only thing that can go wrong is break-ins at night which are handled by the security agency.

4. The prices are easy to evaluate: commercial property prices are very easy to evaluate by seeing the income statement of the current owner. If the seller has taken help of a good broker he would know to set the asking price somewhere that matches the current market trends. Residential property prices are however emotionally priced and the buyer never has the vaguest idea if the property might be over priced.

5. Triple net leases: according to this type of lease, you as a property owner are not required to pay for the lease. The lessee bears all the charges including the real estate tax expenses. You are only bound to make your mortgage payments. Some companies like Starbucks and Walgreens sign these types of deals to stand out of the crowd. These types of options are not available with the residential property.

6. Fewer leasing laws. The laws for the protection of commercial property are pretty flexible and simple as compared to those of the residential properties. This means it is simpler to handle the legal matters with commercial property.

Check out this video as well.

Condo Inspections are must these day. Here is why?

Inspection Matters

Buying a house or building in  Toronto is a challenging task. You need to be 100% sure that you are getting your money’s worth. One of the most important things to consider when buying a TRANSIT CITY condo is condo inspection. You don’t fully rely on the disclosure of the seller or agent regarding the condo. Hire an independent inspector to conduct an onsite visit and assessment of the condo. You can check the inspection report as reference in weighing your decision to purchase the halo condos or look someplace else.

Here are some of the material defects in a condo that could be identified in the condo inspection report:

  • Foundation and structural integrity
  • Odor and noise issues
  • Termites and pest infestation
  • Drainage, erosion, and soil settlement problems
  • Mold and mildew problems or conditions that may potentially lead to these dilemmas
  • Heating and cooling system problems including plumbing, electrical, flooring, walls, and basements

Seller Disclosure Requirements

According to the law in Toronto, the seller is required to disclose all the conditions and facts regarding their Condos. These details entail substantial impact on the condo value yet as such are not easily observed. The required details that should be in the disclosure include the defective house systems such as plumbing and electricity. They must also indicate certain details regarding specific appliances, especially if the items need or do not need any repair. The disclosure must also include asbestos or termite conditions, deed restrictions, fees for condo owners’ association, and other salient details about the condo.

Please watch this video for more on condo inspections.

watch this video more on this topic.

These are some of the tips that can help you to launch your real estate career

Real estate industry is one of the most profitable industry in today with the market scenario. For you to invest in this sector there are certain tips to be aware of, if you want to make your career in real estate market. For the sake of future growth, you should start focusing on what is being said in this article and implement it later at the right time.

Visit Site Friends: Mirvish Gehry condominium

The following are some of the important tips to help you throughout your real estate career:

Show some desire

A person cannot satisfy himself if she/he doesn’t have the longing or desired to do that task with full satisfaction and enjoyment. This is the feeling that can bring a lot of enjoyment to your working environment. This is the key factor to the success in a professional life. Overall there are several ways to do things that can make a person happy. By achieving this anyone can be a good real estate investor.

Start learning

The knowledge is the ultimate source of confidence that can drive you too long in your career. Learning to perform some tasks easily is the vital source for the initial stage of any business. The most promising way to start learning is to know all about it by getting some resources and getting some useful materials to learn. Thousands of rich material is present on the internet today about real estate in the form eBooks, guides and to do methods by which you can quickly learn the basics of real estate. Apart from that, you can take the help of some motivational guidance and many books on leadership qualities.

Set your goals

The third tip is to set your goals that can reflect what you really want to achieve in your life. To set your goals correctly first thing you have to do is to think big, create a to-do list of real estate tasks to perform in small pieces and then starts working on it. You can break your goals into different categories like your short term goals, long term goals, immediate goals etc.

There are thousands of ways to set your goals, but there is no right or wrong way of setting the goals, the only thing that matters here is the determination and clear approach.

Find your true mentor

Having a true mentor which can help you to achieve your goals in right time and with the right approach is very important in getting successful with any kind of business. Your mentor can be your best friend, your parents, your teacher etc.…

Factors That Affect the Value of the Home

Every house is precious to every individual and when you have a spacious house, with all essential details in it, and then it adds value to your home. There are many other factors, which also add value to your home, apart from the spacious house. And when you have decided to sell your house, it is important to consider some useful points, which will enhance the value of your property. Look at some of the important points which add market value to your house.

Paint of the House 

It is important that the paint of the house is done nicely with bright colors. The interiors and exteriors of the house is the first thing 1 yonge VIP focuses on this factor the most, that the buyers will see and a wonderful painted house always gives a good impression to the buyers. Before you sell the house, make sure that the house is painted well and looks beautiful. After all, first impression is the last impression.

A well Equipped Kitchen

The most important place of the house is the kitchen, where women spend most of the time. And if your house has a filthy, under maintained kitchen with loose fixtures and amenities, then this will surely decrease the value of your house. Make sure your kitchen is well equipped with all the essential features like good quality kitchen tiles, good storage area, high quality stoves and chimneys. Before you show your house to the buyers, make your kitchen smart and elegant. Do all the essential renovations before hand, so that you get the maximum price of your property.

Neighborhood

Your house is a beautiful property but if your neighbors are not good or they have low maintained house which looks bad, then this will also decrease the value of your property. It is important that the neighbors are friendly and have helping nature. There are many buyers who will first go to your neighbors to know your relations with them. If your neighbors are always quarreling or shouting then this will affect the price of your house.

The Location of the House

Each family needs a good house with proper schools and hospitals nearby because these are the most essential things people need in everyday life. When you have a good reputed school and colleges near your home, this also adds value to your home. The location of the house matters a lot, while selling the house. It will be good that you live in the middle of the town and everything is easily accessible to you like transportation, groceries, school, hospitals and many other things like this.

The Lousy DIY repairs

If there are some dirty corners in your house or you have some bad fixtures, make sure you get it done by repairing them. Cheap fixtures do not give permanent solutions; try to get high quality fixtures for your home. When the buyers will come your home to see they will first notice your home and see every detail of it. Remember that stain ceiling, broken plumbing will decrease the value of the house.…

Benefits of Real Sector Investment

home-1183150_640There are countless benefits of having a real estate investment because it brings tons of opportunities as well as employment options. They just don’t make good money but they also offer you the chance to have your own business which you can handle as per your own conditions and terms. Real estate provides a very huge platform that makes your career big as real estate markets are huge and on boom always. Real estate business offers you a remarkable platform to make a career and also an option for making huge development in life. There are different kinds of situations that you might find while running a real estate agency. Having a real estate business is also very satisfying as it makes you experienced in running a wel built structure by your own and it can also market your capabilities well. There are many other grounds why real estate investment can be huge and effective for you:

  • It develops the industry and economy: The business can develop and expand with time and it can experiencekeys-1317389_640 constant growth if you apply better strategies and skills to your industry. You can then can 100% sure income as well that your business is going to bring.
  • It provides you great profit margin: The business of property dealing and real estate is among those profitable businesses that provide you with huge profits and this is the most productive response that you are going to get using real estate.
  • You become the owner of your own business: As you have started the business solely or with any partner, you become the owner or the co-owner respectively. You can chip in as much time as you want and no one asks you for that. You become your own boss and set your own time table.
  • Networking helps in getting better business: You can make use of your contacts in building better relationships with them. This way you can get agents around you who have profit sharing margins and you can effortlessly flourish your business deal.
  • living-room-527646_640It offers you with numerous options and possibilities: Real estate business can develop in limited amount of time, only if you offer 1000% to it. Once you start getting familiar with the process and start expanding your business, you get visible results. The income of any real estate agent is dependent on the amount of investment that he has done and this way he makes good amount of money and cracks better business deals. You can expand your business as much you like and it will have no boundaries.
  • This market is permanent and ever growing: This is like one of the best advantages of having a real estate business. The economy and financial aspect of the country is widely dependent on the real estate sector of the country. The real estate market is continuous and permanent because lands are always going to get bought, sold or rented. People always want to invest on properties.