Where to Find Investment Property For Sale
Finding a good quality investment property for sale is not easy. In the aftermath of the recent economic hardships, investors are more cautious than ever. This is understandable given the depth of the problems that have arisen over the last 12 months. Investors should quite rightly look into every aspect of a potential investment, leaving no stone unturned in the process. In this article we'll look at the various ways one can find investment property for sale.
There a great number of companies that specialise in finding this kind of investment opportunity, but choosing the right one for your needs is not always straight forward. If you have a particular kind of investment in mind, then it is a good idea to find an agency that has a special knowledge of that area. There may be a great deal of investment property for sale - especially now - which is all the more reason to be careful when choosing an opportunity.
What seemed like a good investment opportunity 3 years ago, might well be far more suspect, in light of the fact that so many investments ostensibly failed. The companies that pair up those seeking investment with those who are looking to invest have a very important role as a middleman to perform. It is often the case that investment properties are displayed on a company's website, and they control how the various parties interact with each other. It is crucial that they take the responsibility of the role seriously, and they respect the wishes of everyone involved.
When it comes to finding investment property for sale, it is very important to use a company that vets all the investment opportunities as far as possible. Of course, it is not always possible to look at every aspect in detail, but a good company will satisfy the basic requirements in terms of identifying the general outlook on property proposition.
A good company or agency of this kind will insist on the best behaviour of its clients at all times.
It is true, perhaps, to say that the green shoots of recovery will offer up some good investment property for sale, and with the possibility of making some real economic gains. While opportunities are undoubtedly out there - it is crucial to do your homework and source opportunities from the most reliable agencies around, whatever your specialty investment field is. Caution is more important than ever, and you should find advice and associates that reflect this.
Gino Hitshopi is highly experienced in the realm of investment property for sale, having worked in the property industry for many years. For more information please visit: http://www.millionaire-investments.com.
Article Source: http://EzineArticles.com/?expert=Gino_Hitshopi
Monday, December 7, 2009
Thursday, December 3, 2009
Rental Property Valuation - Analyzing an Investment Property
Rental Property Valuation - Analyzing an Investment Property
Despite the sluggish market, it is still complicated to find a "steal" in this day and age. A good starting point for negotiations is often 20% below the list price, with a target purchase price of 10-15% below market value.
But even after your proposal is accepted and the property is under agreement, the property value still may be reduced via the appraisal and/or the home inspection.
For example, if the appraised value comes in too low, you may have to ask the seller to fiddle with the purchase price or make some other arrangement. Similarly, a deficient inspection report may force the seller to either make repairs or correct the price.
GENERAL PROPERTY VALUATION GUIDELINES
Rental property estimation is primarily determined by rental revenue, location, and condition.
bigger units with more bedrooms charge higher rent. So all else being equal, you'll choose properties with multi-bedroom units. An added advantage is that 2-3 bedroom units have a tendency to have a more settled tenancy. Conversely, 1-bedroom apartments tend to draw more of a transient population, which means the turnover is typically greater.
From a location standpoint, multifamily rental properties in older, lower-middle income neighborhoods mostly offer the greatest bang for your buck. Plus, your tenant universe is typically larger in these areas. Avoid densely urban or very low income areas.
In terms of condition, the standard target property will be older (50 years or more) and will have cosmetic deficiencies or simply look "worn-out." These properties can offer great value for your money. Conceptually, it's sort of the opposite of curb appeal.
COSMETIC VS. STRUCTURAL
General property valuation rule: cosmetic problems = good, structural problems = bad!
By "cosmetic," I'm referring to things like:
- Peeling or old paint
- Ancient carpet
- Wrecked light fixtures
- Scratched kitchen cabinets
- Torn vinyl flooring
- Accumulated junk or clutter
- An messy lawn
- Unkempt shrubbery
- Filthy siding
- Old appliances
- Weak bathroom fixtures & towel racks
- Old doorknobs
- Old outlet & switch plate covers
- Dented mini-blinds
- Broken windows
- Any other "quick fix" you can think of
Structural issues, or issues where you must proceed with extreme caution, include:
- A severely cracked foundation or walls
- Galvanized piping
- Leaning chimney
- Outdated electric (i.e., knob & tube wiring)
- Severely sloping, cracked or warped floors
- Pervasive asbestos
- Rotting wood in the frame
- Lead paint
- A long-running leaky roof
- Buried underground oil tanks
- HVAC problems
- Mold
Note that I am not saying to keep away from all of these issues at all cost. Run the numbers to ascertain feasibility. If you can acquire a multifamily rental property on the cheap, then perhaps you'll be able to meet the expense of a new roof, an electric upgrade, or even mold remediation and still come out ahead.
It all depends on the buy price, your property valuation conclusion, your level of experience, and the strength of your stomach. Use my free inspection checklist to help show the way (note: I'll post it on my website).
PROPERTY VALUATION "SQUEEZERS" TO AVOID
And finally, here's a list of things that'll kill property value...avoid them!
- Properties with serious structural issues or that are poorly constructed.
- Properties where all units are of the single-bedroom variety.
- Properties that show "economic obsolescence," such as those with very short ceilings, or those with many bedrooms, but only 1 bathroom for example.
- Twins, condos, row homes, etc. These types of structures usually do not appreciate as much as detached structures.
- Properties with wells and septic systems. These systems could create a lot of problems and added expense down the road.
- Properties that do not have separate utilities. I've literally seen tenants crank the heat up to 90 degrees F in the winter but leave the windows wide open. The only utilities you as a landlord should be paying are water and sewer.
Stay tuned for more info.
Al-Yassa Al-Mahi
Article Source: http://EzineArticles.com/?expert=Al-Yassa_Al-Mahi
Al-Yassa Al-Mahi - EzineArticles Expert Author
Despite the sluggish market, it is still complicated to find a "steal" in this day and age. A good starting point for negotiations is often 20% below the list price, with a target purchase price of 10-15% below market value.
But even after your proposal is accepted and the property is under agreement, the property value still may be reduced via the appraisal and/or the home inspection.
For example, if the appraised value comes in too low, you may have to ask the seller to fiddle with the purchase price or make some other arrangement. Similarly, a deficient inspection report may force the seller to either make repairs or correct the price.
GENERAL PROPERTY VALUATION GUIDELINES
Rental property estimation is primarily determined by rental revenue, location, and condition.
bigger units with more bedrooms charge higher rent. So all else being equal, you'll choose properties with multi-bedroom units. An added advantage is that 2-3 bedroom units have a tendency to have a more settled tenancy. Conversely, 1-bedroom apartments tend to draw more of a transient population, which means the turnover is typically greater.
From a location standpoint, multifamily rental properties in older, lower-middle income neighborhoods mostly offer the greatest bang for your buck. Plus, your tenant universe is typically larger in these areas. Avoid densely urban or very low income areas.
In terms of condition, the standard target property will be older (50 years or more) and will have cosmetic deficiencies or simply look "worn-out." These properties can offer great value for your money. Conceptually, it's sort of the opposite of curb appeal.
COSMETIC VS. STRUCTURAL
General property valuation rule: cosmetic problems = good, structural problems = bad!
By "cosmetic," I'm referring to things like:
- Peeling or old paint
- Ancient carpet
- Wrecked light fixtures
- Scratched kitchen cabinets
- Torn vinyl flooring
- Accumulated junk or clutter
- An messy lawn
- Unkempt shrubbery
- Filthy siding
- Old appliances
- Weak bathroom fixtures & towel racks
- Old doorknobs
- Old outlet & switch plate covers
- Dented mini-blinds
- Broken windows
- Any other "quick fix" you can think of
Structural issues, or issues where you must proceed with extreme caution, include:
- A severely cracked foundation or walls
- Galvanized piping
- Leaning chimney
- Outdated electric (i.e., knob & tube wiring)
- Severely sloping, cracked or warped floors
- Pervasive asbestos
- Rotting wood in the frame
- Lead paint
- A long-running leaky roof
- Buried underground oil tanks
- HVAC problems
- Mold
Note that I am not saying to keep away from all of these issues at all cost. Run the numbers to ascertain feasibility. If you can acquire a multifamily rental property on the cheap, then perhaps you'll be able to meet the expense of a new roof, an electric upgrade, or even mold remediation and still come out ahead.
It all depends on the buy price, your property valuation conclusion, your level of experience, and the strength of your stomach. Use my free inspection checklist to help show the way (note: I'll post it on my website).
PROPERTY VALUATION "SQUEEZERS" TO AVOID
And finally, here's a list of things that'll kill property value...avoid them!
- Properties with serious structural issues or that are poorly constructed.
- Properties where all units are of the single-bedroom variety.
- Properties that show "economic obsolescence," such as those with very short ceilings, or those with many bedrooms, but only 1 bathroom for example.
- Twins, condos, row homes, etc. These types of structures usually do not appreciate as much as detached structures.
- Properties with wells and septic systems. These systems could create a lot of problems and added expense down the road.
- Properties that do not have separate utilities. I've literally seen tenants crank the heat up to 90 degrees F in the winter but leave the windows wide open. The only utilities you as a landlord should be paying are water and sewer.
Stay tuned for more info.
Al-Yassa Al-Mahi
Article Source: http://EzineArticles.com/?expert=Al-Yassa_Al-Mahi
Al-Yassa Al-Mahi - EzineArticles Expert Author
Wednesday, December 2, 2009
How Essential Property Management is in Apartment Investing Success
How Essential Property Management is in Apartment Investing Success
The belief that in 2009 the apartment investor can literally get away with murder by either not having a professional property management person on site or in some way is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part -time.
Four Reasons to hire a Great Property Manager on Site
· Professional Presence: Many Residents Prefer and Expect a Person On Site
· Customer Service Advocate: Professional Approach
· Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
· Collection: Collector of the Rental Units Dues Very Important
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional $40,000 is weaved into the final amount. This will make it that much easier to hire the property manager off of monster or CareerBuilder as the salary will be set in place long before Mrs. Mary Taylor Watkins comes strolling in for her 12 o'clock.
Are There Reasons to Not Employ an On Site Property Manager?
Basically, yes. The size of the apartment complex may be small enough to get away with a part-time, paid, off-site property manager, possibly. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. The apartment investor that is serious about maintaining the integrity of both the rental units and their clients will think very seriously about the hiring of an on-site property manager.
David Lindahl, also known as the "Apartment King" has been successfully investing in single family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
Dave Lindahl - EzineArticles Expert Author
The belief that in 2009 the apartment investor can literally get away with murder by either not having a professional property management person on site or in some way is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part -time.
Four Reasons to hire a Great Property Manager on Site
· Professional Presence: Many Residents Prefer and Expect a Person On Site
· Customer Service Advocate: Professional Approach
· Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
· Collection: Collector of the Rental Units Dues Very Important
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional $40,000 is weaved into the final amount. This will make it that much easier to hire the property manager off of monster or CareerBuilder as the salary will be set in place long before Mrs. Mary Taylor Watkins comes strolling in for her 12 o'clock.
Are There Reasons to Not Employ an On Site Property Manager?
Basically, yes. The size of the apartment complex may be small enough to get away with a part-time, paid, off-site property manager, possibly. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. The apartment investor that is serious about maintaining the integrity of both the rental units and their clients will think very seriously about the hiring of an on-site property manager.
David Lindahl, also known as the "Apartment King" has been successfully investing in single family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
Dave Lindahl - EzineArticles Expert Author
Saturday, November 28, 2009
Tips For Buying Property in 2010
Tips For Buying Property in 2010
As we wave happily to the end of 2009, many of us hope that the New Year will bring about positive changes, especially to the property market. A large portion of London property buyers have held back this year and have decided to wait until 2010 to purchase. Buying property is a serious investment and must not be taken lightly or acted upon too hastily. Property experts are already offering some advice on how to buy smart next year and here are a few insider tips to help you for your future property investment.
Wait and See:
If you intended on buying a Putney property or a house in Hammersmith, it is advised that the closer to the end of next year you buy, the better. There are high hopes for improved mortgage availability and a possible fall in home prices of up to 6.6 percent. Buying a property is a lengthy process, and approaching purchases with caution is not a bad thing. After the busy September/October UK property purchase season, there will be many homes left over, with owners ready to sell at affordable prices to people who are buying. In addition to this, there are usually fewer buyers looking for homes at this time, so the competition is not as stiff.
Getting all of your ducks in a row:
Before you decide to buy that 5 bed-roomed property on a two bedroom budget, make sure that you can actually buy the home that you want. By making sure that your finances are all in order as well as being realistic about what you can afford, you will be able to find a home within your means. Property analysts advise that you find a reliable mortgage broker who knows your financial limitations and will be able to help you acquire a reasonable loan for your home. You must also make sure that your credit history is spick and span first before buying a property and if it is not, getting it sorted out is a top priority.
Read the small print:
There are numerous costs that must be paid when buying a new property. According to property experts, it seems as if a 25 percent deposit is necessary in order to receive the best mortgage rates. Also, do not forget costs such as solicitor fees, stamp duty, bank transfer fees and land registry fees. All of these separate costs add up so it is important that you budget correctly for this and also leave a considerable margin in case any extra payments need to be made.
Buying property is not an easy task, especially in today's current financial circumstances. It is important that you are fully prepared and armed with all the relevant information in order to buy a home that suits your lifestyle and your pocket.
Lauren Potgieter wrote this article for Douglas and Gordon Estate agents. Visit their site and search their London Property and Putney property listings
Article Source: http://EzineArticles.com/?expert=Lauren_Potgieter
As we wave happily to the end of 2009, many of us hope that the New Year will bring about positive changes, especially to the property market. A large portion of London property buyers have held back this year and have decided to wait until 2010 to purchase. Buying property is a serious investment and must not be taken lightly or acted upon too hastily. Property experts are already offering some advice on how to buy smart next year and here are a few insider tips to help you for your future property investment.
Wait and See:
If you intended on buying a Putney property or a house in Hammersmith, it is advised that the closer to the end of next year you buy, the better. There are high hopes for improved mortgage availability and a possible fall in home prices of up to 6.6 percent. Buying a property is a lengthy process, and approaching purchases with caution is not a bad thing. After the busy September/October UK property purchase season, there will be many homes left over, with owners ready to sell at affordable prices to people who are buying. In addition to this, there are usually fewer buyers looking for homes at this time, so the competition is not as stiff.
Getting all of your ducks in a row:
Before you decide to buy that 5 bed-roomed property on a two bedroom budget, make sure that you can actually buy the home that you want. By making sure that your finances are all in order as well as being realistic about what you can afford, you will be able to find a home within your means. Property analysts advise that you find a reliable mortgage broker who knows your financial limitations and will be able to help you acquire a reasonable loan for your home. You must also make sure that your credit history is spick and span first before buying a property and if it is not, getting it sorted out is a top priority.
Read the small print:
There are numerous costs that must be paid when buying a new property. According to property experts, it seems as if a 25 percent deposit is necessary in order to receive the best mortgage rates. Also, do not forget costs such as solicitor fees, stamp duty, bank transfer fees and land registry fees. All of these separate costs add up so it is important that you budget correctly for this and also leave a considerable margin in case any extra payments need to be made.
Buying property is not an easy task, especially in today's current financial circumstances. It is important that you are fully prepared and armed with all the relevant information in order to buy a home that suits your lifestyle and your pocket.
Lauren Potgieter wrote this article for Douglas and Gordon Estate agents. Visit their site and search their London Property and Putney property listings
Article Source: http://EzineArticles.com/?expert=Lauren_Potgieter
Wednesday, November 25, 2009
How to Buy Investment Property - 5 Top Tips!
How to Buy Investment Property - 5 Top Tips!
Are you interested in learning how to buy investment property successfully? This article will give you 5 top tips that will help you succeed and make money from your property investments.
Let's get stuck straight into these tips.
1. Do your research. If you are buying a property in the hope of becoming a landlord then make sure you have checked the areas rental potential and make sure the types of properties that you are planning on buying are the ones in demand by tenants. If you are planning on flipping the property, make sure you buy a property that is wanted by homebuyers.
2. Don't' blindly trust what anyone says. This includes so called experts. Talk to a few different property professionals to try and get a balanced view on things such as:
- What type of property to invest in
- What location
- What type of tenant to aim for
Sometimes it is only after canvassing lots of different opinions that you can really formulate you own strategy with confidence and with solid reasons why you plan to do what you plan to do.
3. Get for comparables for everything. Rental comparables, sales comparables - everything you can. Make sure your comparables are as much like for like as possible. For example: if you want to rent out a two bedroom flat next to a railway station, then try to get the rental comparison of other two bedroom flats next to the same railway station.
If you use a two bedroom flat that is ½ a mile away from the railway station, then your comparisons maybe way off. ½ a mile can be a long distance if it takes you from the desirable part of town to the rough drug dealing part.
4. Get your finances in place. This is a good thing to do even before you start looking for properties to buy. If your finances are sorted out before you start looking at how to buy investment property, then you will be more likely to be looking with confidence and purpose because you know if you find that bargain property you have the finances already in place to do the deal.
But if you don't have your finances in order there might be doubts in your mind about whether you can finance a deal even if you find it, this in turn may cause you to self sabotage any deal you see even before you put an offer in.
5. Employ the right professionals, whether that means builders, solicitors, contractors, or someone else, skimping on employing qualified people to do a job correctly can cost you a lot more money than you expect. Just because someone is cheap, doesn't mean they can do a good job and just because someone seems expensive doesn't mean that they can do a better job than someone who is cheaper.
The only way to find out for sure is to check references and their qualifications to do the job. Try and speak to real people, preferably face to face, that they have worked with before.
Hopefully by reading this article you now have a clearer understanding on how to buy investment property that will make you a long-term profit, as well as perhaps making you a quick buck now.
Do you want to learn even more on how to buy investment property for profit? Are you interested in learning how to buy property with little or no money down? Then go to the http://www.investment-property-guru.com website for more free tips articles and advice.
Article Source: http://EzineArticles.com/?expert=Carlton_Johnson
Are you interested in learning how to buy investment property successfully? This article will give you 5 top tips that will help you succeed and make money from your property investments.
Let's get stuck straight into these tips.
1. Do your research. If you are buying a property in the hope of becoming a landlord then make sure you have checked the areas rental potential and make sure the types of properties that you are planning on buying are the ones in demand by tenants. If you are planning on flipping the property, make sure you buy a property that is wanted by homebuyers.
2. Don't' blindly trust what anyone says. This includes so called experts. Talk to a few different property professionals to try and get a balanced view on things such as:
- What type of property to invest in
- What location
- What type of tenant to aim for
Sometimes it is only after canvassing lots of different opinions that you can really formulate you own strategy with confidence and with solid reasons why you plan to do what you plan to do.
3. Get for comparables for everything. Rental comparables, sales comparables - everything you can. Make sure your comparables are as much like for like as possible. For example: if you want to rent out a two bedroom flat next to a railway station, then try to get the rental comparison of other two bedroom flats next to the same railway station.
If you use a two bedroom flat that is ½ a mile away from the railway station, then your comparisons maybe way off. ½ a mile can be a long distance if it takes you from the desirable part of town to the rough drug dealing part.
4. Get your finances in place. This is a good thing to do even before you start looking for properties to buy. If your finances are sorted out before you start looking at how to buy investment property, then you will be more likely to be looking with confidence and purpose because you know if you find that bargain property you have the finances already in place to do the deal.
But if you don't have your finances in order there might be doubts in your mind about whether you can finance a deal even if you find it, this in turn may cause you to self sabotage any deal you see even before you put an offer in.
5. Employ the right professionals, whether that means builders, solicitors, contractors, or someone else, skimping on employing qualified people to do a job correctly can cost you a lot more money than you expect. Just because someone is cheap, doesn't mean they can do a good job and just because someone seems expensive doesn't mean that they can do a better job than someone who is cheaper.
The only way to find out for sure is to check references and their qualifications to do the job. Try and speak to real people, preferably face to face, that they have worked with before.
Hopefully by reading this article you now have a clearer understanding on how to buy investment property that will make you a long-term profit, as well as perhaps making you a quick buck now.
Do you want to learn even more on how to buy investment property for profit? Are you interested in learning how to buy property with little or no money down? Then go to the http://www.investment-property-guru.com website for more free tips articles and advice.
Article Source: http://EzineArticles.com/?expert=Carlton_Johnson
Friday, November 20, 2009
Top 10 Overseas Property Investments in 2010
Top 10 Overseas Property Investments in 2010
1. Brazil
The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world's fastest growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.
Property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth.
One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country's burgeoning economy, and the pending introduction of mortgages to overseas nationals.
Investment banking firm Goldman Sachs believes that Brazil's economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) member nations over the next few years.
Brazil's economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet Brazil property and land prices still remain a fraction of those found in more developed nations.
The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to £11.5bn on building a million new homes in Brazil between now and 2011.
However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil.
2. France
In stark contrast to the relatively high risk, high return nature of investing in Brazil, the risks associated with investing in French property are far lower.
France has traditionally always been a rather safe haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting the fact that the global credit crunch had much less of an impact, compared to other European counterparts.
France's strong economy is having a positive impact on its property market, which now appears to be on the road to recovery.
Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009.
Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further, due to France's prudent attitude to mortgage lending.
Anyone taking out a mortgage in France is generally only permitted to borrow one third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates.
Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports that there was a 21% rise in mortgage enquiries in Q3 2009 compared with the previous quarter.
The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors, due to improved yields across the country.
The capital city of Paris has long been identified as one of the most attractive European cities for investment, and is typically the most popular place to buy a home in France, along with Cannes, Marseille and Nice, which are all located along the southern Mediterranean coast.
3. USA
The USA property market may be showing tentative signs of improvement, following one of the worst economic and property crashes in living memory, but the downturn has come at a cost to many US homeowners.
Data from RealtyTrac shows that a record high of 938,000 US homes foreclosed in the third quarter of 2009. If this trend continues, foreclosures would reach around 3.5m by the end of 2009, up from around 2.3m properties last year.
Properties in Nevada had the highest foreclosures rates in Q3, followed by homes in Arizona, California, Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois.
Rising unemployment levels - currently at a 26-year high of 9.8% - was cited as the main reason for the increase in foreclosure levels. Yet, there may be worst to come, as the unemployment rate is not expected to peak until mid-2010.
Unfortunately, one person's misfortune is another's gain. With around 7m properties currently in the foreclosure process, compared with 1.3m for the same period in 2005, predatory investors are buying up distressed, abandoned and repossessed homes at bargain-basement prices, as now appears to be the ideal time to fill your boots.
Although the sub-prime mortgage crisis started in the USA, there are growing signs that the property market may now be at or near the bottom of the cyclical downturn. Various indices reveal that average residential prices started to rise, albeit marginally, during the second quarter of 2009.
4. Norway
Sales in Norway have nosedived over the past year or so, as residential values have cooled.
However, the Norwegian property market downturn, which has not been anywhere near as severe as in other neighbouring countries, appears to have already bottomed out, and looks ready to lead the Scandinavian property market recovery.
The key to the Norwegian property market is the strength of the country's economy, which has made it one of the wealthiest in the world, while new housing output has dropped below average, which could fall short of demand next year.
Norway is rich in both gas and oil and this helps to support the country's economy and ensure that its currency also stays strong - both alluring to property investors.
The country's population is estimated to increase by 23% - approximately one million people - over the next 40 years, which should make sure that long-term residential demand is robust.
Another positive is the fact that unemployment is extremely low - approximately 3% - compared to its European counterparts.
Almost half of the Norwegian population resides in the counties of Oslo, Rogaland, Akershus and Hordaland, and so this is where property investors should focus their attentions. Property prices in these places remain relatively cheap compared to wages in Norway.
5. Switzerland
Many of the high earners currently living in Britain look set to quit the UK in droves ahead of the introduction of a 50% top tax rate in April 2010, and escape to more tax-friendly shores, such as Switzerland.
The Swiss authorities are actively lobbying to attract many of these disillusioned high-net worth individuals, who are being tempted by assurances that they will be allowed to steer clear of European Union regulation and Britain's Financial Services Authority.
It is estimated that hedge funds managing in the region of £10 billion in assets have already moved to Switzerland in the past year alone. This has increased demand for homes to rent and buy.
Due to canton restrictions, it has previously been difficult for foreigners to buy property in Switzerland. However, the country has now eased its strict property buying regulations, and opened its doors to more international buyers, partly through the introduction of 'residence de tourisme' style investments, which is similar to the ever-popular 'leaseback' formula in France.
Switzerland, one of the richest nations in the world, is of course a tax haven.
Anyone who sets up permanent residency in Switzerland would be entitled to take advantage of the country's favourable tax law, including the lump sum taxation, which charges a levy based on people's lifestyle and spending habits.
Given that one's taxable income is charged at just five times their annual rent or rental value of their property, and the fact that assets outside Switzerland remain tax-free, should ensure demand for Swiss properties - to rent and buy - remains strong for years to come.
Historically, Swiss property values have typically appreciated in line with inflation. Properties located at the top end of the market, in cantons like Valais and Vaud, have reportedly increased by up to 20% in the past year.
6. Australia
The Australian economic and property market recovery has been swifter than the other leading nations around the world.
It has been claimed that the revival in the country's property market and economy is as much as 12 months ahead of the other developed countries in the economic cycle.
Unemployment peaked in September 2009, in stark contrast to Britain and the USA, while increasing commodity demand from China has forced the Australian Central Bank to raise benchmark interest rates. Yet this has failed to cool strong residential demand, which coupled with a general housing shortage, is forcing property values higher.
The latest Australian Bureau of Statistics house price index shows that the average price of a residential property in Australia appreciated by 4.2% in the third quarter of 2009, which means that in the year to September, residential prices increased 6.2%.
Australia could be set for a residential property price boom over the next few years, as the country's economy continues to show genuine signs of recovery.
A recent Australia property report projected that average residential prices in nearly all capital cities would increase by between 11% and 19% by 2012, with the greatest property price rises expected to be recorded in Sydney, Adelaide and Melbourne.
7. Malaysia
I tipped Malaysia to be the number one place to invest in property in 2009, due to the country's robust property ownership laws, lack of capital gains tax and attractive mortgage rates.
However, residential sales were sluggish during the early half of the year, as the market struggled as a direct consequence of the global credit crunch, while there are some political uncertainties emerging.
But with consumer sentiment improving, the recent positive market recovery, supported by the construction of new residential schemes across the country, should continue in 2010.
While property prices race ahead across much of Asia - in countries like China, Vietnam and Singapore - which has led to heightened fears of budding property bubbles, the Malaysian property market has merely stabilised, making it suited to more balanced investors.
With an extremely young and well-educated population, long-term demand for property in Malaysia looks set to grow.
Domestically, an increasing number of people are moving from the countryside into the larger cities, while internationally Malaysia looks set to cross a demographic landmark of huge social and economic importance.
Malaysia's population is growing by around 2%, or an extra 500,000 people, every year. The World Bank projects the country's population will grow annually by 1% until 2050, which will place further pent-up demand on property values.
Malaysia's property prices are still lower than they were in 1997, due partly to the Asian financial crisis in the late 1990's, suggesting very real room for growth.
8. Abu Dhabi
The recent property price falls in the fast growing UAE capital of Abu Dhabi, the richest and largest of all the seven UAE states, have been nowhere near as severe as in neighbouring Dubai.
The tax-efficient emirate has the largest fossil fuel reserve in the UAE, is the fourth biggest natural gas producer in the world, has the world's highest income per capita, is home to almost all of the Arabic Fortune 500 companies, and is currently sitting on over 88 billion barrels of proven oil reserves.
Yet Abu Dhabi is now actively trying to reduce its reliance on oil, and is diversify its economy into the financial services and tourism sectors. Billions of pounds have been allocated for infrastructure projects and the development of residential, leisure and cultural schemes across the oil-rich emirate. The plans are truly remarkable.
Nevertheless, investors seeking out bargain deals will find some of the best opportunities for distressed property investments in the Gulf region in Abu Dhabi.
The recent slowdown in the property market means that just 45,000 are anticipated to be completed in the capital in the next four years, augmenting the exiting housing shortage.
The supply of housing stock remains scant, partly because Abu Dhabi is not part of a community master-plan like those pioneered by Emaar and Nakheel in Dubai.
The housing shortfall in the capital is expected to stand at around 15,000 homes next year, which could mean that property prices and rents are forced up, while residential demand - domestic and international - is expected to increase.
Because Abu Dhabi does not have the same high level of exposure to the global financial crisis, compared with other UAE emirates, mortgages for non-residents - at up to 75% loan-to-value - are readily available again. This is likely to appeal to buy-to-let investors, as well as those people seeking equity release and to remortgage their properties in Abu Dhabi.
9. Oman
The relaxed Arabian state of Oman, voted 'destination of the year 2008' by Vogue magazine, has long been a popular holidaying destination for people living within the GCC.
With a population of around 2.3m, Oman is being modernised and liberalised culturally and economically by hereditary Sultan, Qaboos Bin Said Al-Said, a forward-thinking leader.
Sultan Qaboos strategy for economic growth - Vision 2020 - aims to diversify Oman's economic dependency on oil, and focus on other industries, such as property and tourism.
Demand for property in Oman is primarily being driven by the Sultan's decision to introduce legislation in 2004 - ratified in 2006 - permitting foreigners to buy freehold property and land in designated tourist areas, most notably Muscat. These projects are referred to as Integrated Tourism Complexes (ITC). Furthermore, foreign homeowners can now apply for residency visas.
A number of luxurious developments are being erected across Oman including, The Chedi, Azaiba, Wadi Kabi, The Wave, Barr Al Jissah Residences, Jebel Sifah, Salalah Beach, The Malkai, Muscat Hills, Al Madina A'Zarqa, Jebel Sifah, and Salalah Beach.
The fact that Oman appeals to end-users - not just investors - means that the medium to long-term prospect for Omani property market growth looks good.
10. South Africa
South African property market conditions look ripe for investment, as the country starts to come out of recession. Recent property price falls appear to be bottoming out, while FIFA's 2010 football World Cup fast approaches.
From the moment world football's governing body, FIFA, awarded South Africa the rights to host the World Cup in 2010, shrewd property investors from around the globe have been looking on with great interest, with one eye firmly on cashing in on the sport's popularity.
The first ever FIFA World Cup to be hosted on African soil has the potential to be the biggest sporting event of all time.
The tournament is expected to attract around 350,000 football fans for a month of football mayhem, starting on 11 June 2010, which is tipped to contribute around £1.5bn to South Africa's gross domestic product and generate another £500m in government taxes.
South Africa property prices haven softened over the past year or so, due to a fall in residential demand, caused by reduced housing affordability, higher inflation and interest rates.
But residential prices could soon experience growth, on the back of what should be a reinvigorated economy, spurred by the football tournament.
While the odds may be stacked up against the South African football winning the World Cup in 2010, it is not too far fetched to assume that the country's housing market could prove to be the real winner of the tournament, generating significant returns for property investors in the process.
Marc Da-Silva for HomesOverseas.co.uk.
Brazil property for sale. Overseas property news. Expert advice on buying property overseas and overseas property investment.
Article Source: http://EzineArticles.com/?expert=Marc_Da-Silva
1. Brazil
The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world's fastest growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.
Property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth.
One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country's burgeoning economy, and the pending introduction of mortgages to overseas nationals.
Investment banking firm Goldman Sachs believes that Brazil's economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) member nations over the next few years.
Brazil's economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet Brazil property and land prices still remain a fraction of those found in more developed nations.
The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to £11.5bn on building a million new homes in Brazil between now and 2011.
However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil.
2. France
In stark contrast to the relatively high risk, high return nature of investing in Brazil, the risks associated with investing in French property are far lower.
France has traditionally always been a rather safe haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting the fact that the global credit crunch had much less of an impact, compared to other European counterparts.
France's strong economy is having a positive impact on its property market, which now appears to be on the road to recovery.
Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009.
Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further, due to France's prudent attitude to mortgage lending.
Anyone taking out a mortgage in France is generally only permitted to borrow one third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates.
Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports that there was a 21% rise in mortgage enquiries in Q3 2009 compared with the previous quarter.
The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors, due to improved yields across the country.
The capital city of Paris has long been identified as one of the most attractive European cities for investment, and is typically the most popular place to buy a home in France, along with Cannes, Marseille and Nice, which are all located along the southern Mediterranean coast.
3. USA
The USA property market may be showing tentative signs of improvement, following one of the worst economic and property crashes in living memory, but the downturn has come at a cost to many US homeowners.
Data from RealtyTrac shows that a record high of 938,000 US homes foreclosed in the third quarter of 2009. If this trend continues, foreclosures would reach around 3.5m by the end of 2009, up from around 2.3m properties last year.
Properties in Nevada had the highest foreclosures rates in Q3, followed by homes in Arizona, California, Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois.
Rising unemployment levels - currently at a 26-year high of 9.8% - was cited as the main reason for the increase in foreclosure levels. Yet, there may be worst to come, as the unemployment rate is not expected to peak until mid-2010.
Unfortunately, one person's misfortune is another's gain. With around 7m properties currently in the foreclosure process, compared with 1.3m for the same period in 2005, predatory investors are buying up distressed, abandoned and repossessed homes at bargain-basement prices, as now appears to be the ideal time to fill your boots.
Although the sub-prime mortgage crisis started in the USA, there are growing signs that the property market may now be at or near the bottom of the cyclical downturn. Various indices reveal that average residential prices started to rise, albeit marginally, during the second quarter of 2009.
4. Norway
Sales in Norway have nosedived over the past year or so, as residential values have cooled.
However, the Norwegian property market downturn, which has not been anywhere near as severe as in other neighbouring countries, appears to have already bottomed out, and looks ready to lead the Scandinavian property market recovery.
The key to the Norwegian property market is the strength of the country's economy, which has made it one of the wealthiest in the world, while new housing output has dropped below average, which could fall short of demand next year.
Norway is rich in both gas and oil and this helps to support the country's economy and ensure that its currency also stays strong - both alluring to property investors.
The country's population is estimated to increase by 23% - approximately one million people - over the next 40 years, which should make sure that long-term residential demand is robust.
Another positive is the fact that unemployment is extremely low - approximately 3% - compared to its European counterparts.
Almost half of the Norwegian population resides in the counties of Oslo, Rogaland, Akershus and Hordaland, and so this is where property investors should focus their attentions. Property prices in these places remain relatively cheap compared to wages in Norway.
5. Switzerland
Many of the high earners currently living in Britain look set to quit the UK in droves ahead of the introduction of a 50% top tax rate in April 2010, and escape to more tax-friendly shores, such as Switzerland.
The Swiss authorities are actively lobbying to attract many of these disillusioned high-net worth individuals, who are being tempted by assurances that they will be allowed to steer clear of European Union regulation and Britain's Financial Services Authority.
It is estimated that hedge funds managing in the region of £10 billion in assets have already moved to Switzerland in the past year alone. This has increased demand for homes to rent and buy.
Due to canton restrictions, it has previously been difficult for foreigners to buy property in Switzerland. However, the country has now eased its strict property buying regulations, and opened its doors to more international buyers, partly through the introduction of 'residence de tourisme' style investments, which is similar to the ever-popular 'leaseback' formula in France.
Switzerland, one of the richest nations in the world, is of course a tax haven.
Anyone who sets up permanent residency in Switzerland would be entitled to take advantage of the country's favourable tax law, including the lump sum taxation, which charges a levy based on people's lifestyle and spending habits.
Given that one's taxable income is charged at just five times their annual rent or rental value of their property, and the fact that assets outside Switzerland remain tax-free, should ensure demand for Swiss properties - to rent and buy - remains strong for years to come.
Historically, Swiss property values have typically appreciated in line with inflation. Properties located at the top end of the market, in cantons like Valais and Vaud, have reportedly increased by up to 20% in the past year.
6. Australia
The Australian economic and property market recovery has been swifter than the other leading nations around the world.
It has been claimed that the revival in the country's property market and economy is as much as 12 months ahead of the other developed countries in the economic cycle.
Unemployment peaked in September 2009, in stark contrast to Britain and the USA, while increasing commodity demand from China has forced the Australian Central Bank to raise benchmark interest rates. Yet this has failed to cool strong residential demand, which coupled with a general housing shortage, is forcing property values higher.
The latest Australian Bureau of Statistics house price index shows that the average price of a residential property in Australia appreciated by 4.2% in the third quarter of 2009, which means that in the year to September, residential prices increased 6.2%.
Australia could be set for a residential property price boom over the next few years, as the country's economy continues to show genuine signs of recovery.
A recent Australia property report projected that average residential prices in nearly all capital cities would increase by between 11% and 19% by 2012, with the greatest property price rises expected to be recorded in Sydney, Adelaide and Melbourne.
7. Malaysia
I tipped Malaysia to be the number one place to invest in property in 2009, due to the country's robust property ownership laws, lack of capital gains tax and attractive mortgage rates.
However, residential sales were sluggish during the early half of the year, as the market struggled as a direct consequence of the global credit crunch, while there are some political uncertainties emerging.
But with consumer sentiment improving, the recent positive market recovery, supported by the construction of new residential schemes across the country, should continue in 2010.
While property prices race ahead across much of Asia - in countries like China, Vietnam and Singapore - which has led to heightened fears of budding property bubbles, the Malaysian property market has merely stabilised, making it suited to more balanced investors.
With an extremely young and well-educated population, long-term demand for property in Malaysia looks set to grow.
Domestically, an increasing number of people are moving from the countryside into the larger cities, while internationally Malaysia looks set to cross a demographic landmark of huge social and economic importance.
Malaysia's population is growing by around 2%, or an extra 500,000 people, every year. The World Bank projects the country's population will grow annually by 1% until 2050, which will place further pent-up demand on property values.
Malaysia's property prices are still lower than they were in 1997, due partly to the Asian financial crisis in the late 1990's, suggesting very real room for growth.
8. Abu Dhabi
The recent property price falls in the fast growing UAE capital of Abu Dhabi, the richest and largest of all the seven UAE states, have been nowhere near as severe as in neighbouring Dubai.
The tax-efficient emirate has the largest fossil fuel reserve in the UAE, is the fourth biggest natural gas producer in the world, has the world's highest income per capita, is home to almost all of the Arabic Fortune 500 companies, and is currently sitting on over 88 billion barrels of proven oil reserves.
Yet Abu Dhabi is now actively trying to reduce its reliance on oil, and is diversify its economy into the financial services and tourism sectors. Billions of pounds have been allocated for infrastructure projects and the development of residential, leisure and cultural schemes across the oil-rich emirate. The plans are truly remarkable.
Nevertheless, investors seeking out bargain deals will find some of the best opportunities for distressed property investments in the Gulf region in Abu Dhabi.
The recent slowdown in the property market means that just 45,000 are anticipated to be completed in the capital in the next four years, augmenting the exiting housing shortage.
The supply of housing stock remains scant, partly because Abu Dhabi is not part of a community master-plan like those pioneered by Emaar and Nakheel in Dubai.
The housing shortfall in the capital is expected to stand at around 15,000 homes next year, which could mean that property prices and rents are forced up, while residential demand - domestic and international - is expected to increase.
Because Abu Dhabi does not have the same high level of exposure to the global financial crisis, compared with other UAE emirates, mortgages for non-residents - at up to 75% loan-to-value - are readily available again. This is likely to appeal to buy-to-let investors, as well as those people seeking equity release and to remortgage their properties in Abu Dhabi.
9. Oman
The relaxed Arabian state of Oman, voted 'destination of the year 2008' by Vogue magazine, has long been a popular holidaying destination for people living within the GCC.
With a population of around 2.3m, Oman is being modernised and liberalised culturally and economically by hereditary Sultan, Qaboos Bin Said Al-Said, a forward-thinking leader.
Sultan Qaboos strategy for economic growth - Vision 2020 - aims to diversify Oman's economic dependency on oil, and focus on other industries, such as property and tourism.
Demand for property in Oman is primarily being driven by the Sultan's decision to introduce legislation in 2004 - ratified in 2006 - permitting foreigners to buy freehold property and land in designated tourist areas, most notably Muscat. These projects are referred to as Integrated Tourism Complexes (ITC). Furthermore, foreign homeowners can now apply for residency visas.
A number of luxurious developments are being erected across Oman including, The Chedi, Azaiba, Wadi Kabi, The Wave, Barr Al Jissah Residences, Jebel Sifah, Salalah Beach, The Malkai, Muscat Hills, Al Madina A'Zarqa, Jebel Sifah, and Salalah Beach.
The fact that Oman appeals to end-users - not just investors - means that the medium to long-term prospect for Omani property market growth looks good.
10. South Africa
South African property market conditions look ripe for investment, as the country starts to come out of recession. Recent property price falls appear to be bottoming out, while FIFA's 2010 football World Cup fast approaches.
From the moment world football's governing body, FIFA, awarded South Africa the rights to host the World Cup in 2010, shrewd property investors from around the globe have been looking on with great interest, with one eye firmly on cashing in on the sport's popularity.
The first ever FIFA World Cup to be hosted on African soil has the potential to be the biggest sporting event of all time.
The tournament is expected to attract around 350,000 football fans for a month of football mayhem, starting on 11 June 2010, which is tipped to contribute around £1.5bn to South Africa's gross domestic product and generate another £500m in government taxes.
South Africa property prices haven softened over the past year or so, due to a fall in residential demand, caused by reduced housing affordability, higher inflation and interest rates.
But residential prices could soon experience growth, on the back of what should be a reinvigorated economy, spurred by the football tournament.
While the odds may be stacked up against the South African football winning the World Cup in 2010, it is not too far fetched to assume that the country's housing market could prove to be the real winner of the tournament, generating significant returns for property investors in the process.
Marc Da-Silva for HomesOverseas.co.uk.
Brazil property for sale. Overseas property news. Expert advice on buying property overseas and overseas property investment.
Article Source: http://EzineArticles.com/?expert=Marc_Da-Silva
Thursday, November 19, 2009
All About Sell and Rent Back Scheme
All About Sell and Rent Back Scheme
Many times people get stuck in difficult financial crunches, in which they have no option but to sell off their house. Selling your own house, especially in this desperate way, is a very tough decision to make. Such situations generally arrive when a person is unable to payback their mortgage payments. However, many mortgage rescuer companies now offer a solution to such problems, 'Sell and Rent Back' scheme.
What is Sell and Rent Back Scheme?
In this scheme, a mortgage rescuer company buys a home from people desperate to sell their house fast for cash. These companies buy the house on a discounted price and rent out the house back to the borrower at market price. The deal takes place quietly without any of your neighbour even getting a hint about it. The borrower gets the advantage in terms of the overdue debts. But there is also a disadvantage; the house is purchased on a price lower than the market price, especially by unregulated firms.Mostly, the borrower gets 75% to 85% of the money. The price is less than the actual cost of the house, but for a person desperately in need of money, it comes as a God sent help. The cash payment can be used by the borrowers to take care of his/her financial crunches or settle all the mortgage payments. Many mortgage rescuer companies also offer the borrower the possibility of buying back his/her house after few years or when they are financially stable enough to purchase it back. However, the borrower can only buy the house back on the then current market prices. The paper work and legal matters are taken care of by the company and are completed within the few days of the deal. Also mostly payments of taxes, like sale tax, etc are also taken care of by the company. However, some borrower is taken for a ride in such deals. Some companies and real estate agents keep an open eye for people with desperate need of money and huge unpaid debts and mortgages. They take undue advantage of the helplessness of the borrower by quoting a very low price for their house. The borrowers are in dire need of money and reluctantly accept the offer, which means an instant profit for the company.
Few Words of caution:
Internet has made it easier for these companies to grow their tentacles and clutch such helpless people. They find such people who are in difficult financial crunches and offer them to sell to rent back. The only way to get best solution is to approach reputed and big scale companies. Approach the companies who have a good reputation in the market for offering appropriate price for the properties and offer a future prospect of buying back their house. Do a proper back ground research of the company and approach previous borrowers who have had experience with the company to get best price for your house in difficult situations.
For any help on Sell and rent back, check out the info available online; these will help you learn to find the Sell to rent back!
Article Source: http://EzineArticles.com/?expert=Michel_Disusa
Many times people get stuck in difficult financial crunches, in which they have no option but to sell off their house. Selling your own house, especially in this desperate way, is a very tough decision to make. Such situations generally arrive when a person is unable to payback their mortgage payments. However, many mortgage rescuer companies now offer a solution to such problems, 'Sell and Rent Back' scheme.
What is Sell and Rent Back Scheme?
In this scheme, a mortgage rescuer company buys a home from people desperate to sell their house fast for cash. These companies buy the house on a discounted price and rent out the house back to the borrower at market price. The deal takes place quietly without any of your neighbour even getting a hint about it. The borrower gets the advantage in terms of the overdue debts. But there is also a disadvantage; the house is purchased on a price lower than the market price, especially by unregulated firms.Mostly, the borrower gets 75% to 85% of the money. The price is less than the actual cost of the house, but for a person desperately in need of money, it comes as a God sent help. The cash payment can be used by the borrowers to take care of his/her financial crunches or settle all the mortgage payments. Many mortgage rescuer companies also offer the borrower the possibility of buying back his/her house after few years or when they are financially stable enough to purchase it back. However, the borrower can only buy the house back on the then current market prices. The paper work and legal matters are taken care of by the company and are completed within the few days of the deal. Also mostly payments of taxes, like sale tax, etc are also taken care of by the company. However, some borrower is taken for a ride in such deals. Some companies and real estate agents keep an open eye for people with desperate need of money and huge unpaid debts and mortgages. They take undue advantage of the helplessness of the borrower by quoting a very low price for their house. The borrowers are in dire need of money and reluctantly accept the offer, which means an instant profit for the company.
Few Words of caution:
Internet has made it easier for these companies to grow their tentacles and clutch such helpless people. They find such people who are in difficult financial crunches and offer them to sell to rent back. The only way to get best solution is to approach reputed and big scale companies. Approach the companies who have a good reputation in the market for offering appropriate price for the properties and offer a future prospect of buying back their house. Do a proper back ground research of the company and approach previous borrowers who have had experience with the company to get best price for your house in difficult situations.
For any help on Sell and rent back, check out the info available online; these will help you learn to find the Sell to rent back!
Article Source: http://EzineArticles.com/?expert=Michel_Disusa
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