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In investing a real estate property, location is one of the many factors you have to consider. However, that does not stand alone; in fact, you need to know the type of real estate you have to invest on. When you consider a purchase of a certain real estate, you must look at whether it is a residential, commercial, office, or retail property. Each one of them is usually influenced by certain drivers that would dictate their own respective performances in the investment scheme. One type of property is different from the other, and it can also be said on how they perform and how good they are as an investment.
There are two types of investments in real estate and these are:
- Income-producing; and
- Non-income producing.
Income-producing real estate is often classified into four, and these are offices, retail, industrial, and residential areas that are leased for renters. In other words, such real estate is usually rented for other people’s usage, and that the income is usually generated by them. On the other hand, non-income-producing ones are the usual properties, such as houses, vacation properties, and commercial buildings for vacancy.
One of the most recognized forms of investment in the income-producing realm of real estate is office property. With the high level of office properties in urban areas such as cities and suburbs in terms of amount and necessity, there’s no way investors can profit from these. Indeed, office space is a growing need, especially for start-ups and those transferring from one office space to the next.=
The same goes with properties for those selling retail products, such as shopping malls and buildings that tenants can rent beside pedestrian zones. Investors often take into account not only location, but also its visibility and the population density of the supposed retail establishment.
Of course, regardless of the type of real property investment, there are those that cater to vacationers and families alike. As it is, residential properties often provide the most stable returns. For income-producing residential areas, investors can get profit out of it because there are tenancy rates that they can impose on potential tenants.
Likewise, for non-income-producing residential areas, investors can still obtain stable returns through capital appreciation. Also, investing on debt secured by such type of real estate should be based on the borrower’s ability to cover the mortgage payments because there is no income that can be obtained from tenancy.
This guest blog was provided by Scott Gordon Realty, the finest Palm Beach luxury real estate services, luxury rentals and condos for sale.
Despite the fact that the housing market, and for that matter the economy, is not what it once was, people everywhere still are moving more than ever before. According to the US Census Bureau, 1 in 6 Americans move each year, and these lifestyle changes are usually the primary reasons: marriage, better job, graduation, job transfer, new baby and retirement.
Change of residency can be an exciting or traumatic time for any person or family; there is no doubt that various emotions will be generated, depending on your specific circumstances. If you are thinking about calling some new place home for any reason, there are a few things you should keep in mind to ensure that things go as smooth as possible.
What to do first
What most people don’t realize is that renting a self-storage unit should be the very first thing on your moving agenda. Despite the stereotype associated with storage, these facilities are not only for hoarders with too much junk. Renting storage units is actually an incredibly convenient way to keep your belongings safe and organized while you search for and move into a new home.
Searching for the right unit
Thankfully, most storage facilities will allow you to rent month-to-month, eliminating the need for you to rush through this already stressful process. However, you do want to make sure that you select the perfect unit to fit your needs, so here are a few pointers on how to do just that.
- If you already know the general area or neighborhood of where you would like to move, start by looking at units near there.
- Do however, weigh cost versus convenience; the cheapest unit may not be anywhere close to where you want to live. If you plan on making multiple trips to your unit, it may be worth the extra cost of convenience to save all that money on gas.
- Know what you plan on storing so you know what size unit you are going to need. It doesn’t do any good looking for unit prices if you don’t know what size you will need.
- Look for security amenities. Most facilities should offer high-tech security systems, but make sure you check with them to ensure that your items are safe.
- Compare self-storage units online. Instead of calling facility owners one by one or driving around searching for them, use a service like SpareFoot to find great deals online.
Now that you have found the right location to store your belongings, it is time to think about how you are going to properly pack all of those items. Below are some tips that should help you stay organized throughout this change of lifestyle.
- Make sure everything is clean and in good condition before moving it. For example, one thing you don’t want is after you are all settled in, pulling out your gardening tools only to find that a permanent layer of mud/dirt has accumulated all over them.
- Buy top quality moving supplies designed specifically for moving. Some items you should consider are boxes or plastic storage containers, bubble wrap, and even blankets (to cover furniture with). Check to see if your moving/storage company provides any of these things, most will at a discounted price.
- Investigate your storage size. Picture your belongings as they will be once they are disassembled and stored, not as they are in your home, that way you have a better idea of what will be able to fit.
- Finally, think about temperature. There are things that need to be kept at a certain temperature, so keep that in mind while in transit and especially in the storage unit (consider renting a climate-controlled unit if this is an issue).
This article was written by Matt Schexnayder. Matt is on the SpareFoot marketing team and writes for the SpareFoot blog. SpareFoot is the largest online marketplace for self-storage that offers consumers the most complete comparison shopping experience in the storage industry.
Guest Post by: Sam Marquit
Millions from all over the world, including residents (like me) of New York City apartments, make the journey to the Western Coast and visit historic San Francisco, California. Native Americans lived here for thousands of years before Spaniards and other European explorers arrived. The many sites of the city include the infamous prison, world famous bridges and an immigration story that rivals New York.
Originally a military fort and prison, Alcatraz became a federal prison in 1934. Touted as escape proof, the facility housed hundreds of the most dangerous and notorious criminals in American history. Famed former inmates included Al Capone, “Machine Gun” Kelly and Robert Stroud, the “Birdman of Alcatraz.” The facility closed in the 1960s because of the expenses involved with maintaining the island. Millions of visitors travel to the destination by ferry to get a glimpse of the cell house interior. The prison also contains a museum that details the island’s history from military installation, through the prison years, and the brief Native American occupation.
Golden Gate Bridge
Designed by Joseph B. Strauss and constructed in 1937, the iconic bridge continues attracting millions of visitors annually. Guests may walk, bike or drive across the 1.7-mile span, which rises 746 feet above the water. Many simply enjoy the view from either end. The north end of the expansion bridge features a naval memorial and the south end has gardens, a café and the bridge pavilion. Historic Fort Point lies under the bridge. Constructed during the Civil War, at the height of the California Gold Rush, the fort protected the harbor until 1970 when the location became a national historic site.
From the days of the California Gold Rush, over a century ago, fishermen docked their boats, set off to sea and returned with their catch to Fisherman’s Wharf. The variety of fresh seafood commonly caught included Dungeness crab. During those early days, there were no restaurants or visitor attractions. On the piers, fishermen set up cauldrons filled with boiling water, cooking the crab and selling their wares. Today, only a few dozen fishing vessels leave port every morning, but the location holds numerous attractions that include historic ferries and schooners at the Maritime National History Park and the SS Jeremiah liberty ship.
Considered the Ellis Island of the West Coast, Angel Island served as an immigration processing location from 1910 to 1940. Over one million Asian immigrants arrived here. Many remained on the island for years because of government restrictions concerning Asian immigration. With government approval, the Chinese American community obtained recognition of the island as a state landmark in 1962.
Having well over 100,000 residents, Chinatown in San Francisco is the largest Asian community outside of China. Hoisanese and Zhongshanese Chinese immigrants began arriving here in 1849. Those who successfully landed in San Francisco developed a community for support, as the new arrivals only possessed blue-collar skills and did not speak the language. The community steadily grew, establishing restaurants, shops and municipalities. Today, the area spans over 24 blocks and features typical Oriental styled buildings, Chinese gardens and a large selection of businesses.
If you are a resident of San Francisco and wondering how much can I afford to spend on a house, then there is good news for you. Buying home in San Francisco is a lucrative option and the market in doing pretty well. The current rates of mortgage in San Francisco for 30-year fixed mortgage is 3.250% while the APR is 3.598%, for 15-year fixed mortgage is 2.750% and the APR is 3.138% and for 3 year ARM the rate is 2.125% while the APR is 3.374%. These rates are at an all time low and makes the mortgage market in San Francisco a very sought after place now.
Not only are the residents of San Francisco, living on rent are trying to buy new homes in order to take advantage of the low market rates and first time home buyers’ tax credit advantage, there are also residents of other states who are planning to shift to San Francisco or buy a house there.
In recent news, the Assessor-Recorder of San Francisco, Phil Ting had announced that San Francisco is having the strongest real estate market in the state of California with a growth nearing about $2 billion in the previous year. Ting also went a step ahead to predict that the growth will continue in San Francisco in the following years. Although this is surprising news for the buyers and sellers in the Bay Area, real estate agents are not taken aback by the disclosure.
Rick Teed, the cofounder of real estate and development company Teed Haze said that the city can be compared to a gold mine for real estate. He was quoted saying that if there is a house which has no view but it is redone and is in a locality such as Pacific Heights, then the value of the house would be north of $1000 per-square foot to start with. According to Teed, the prediction by Ting about the growing market in the city is logical as there is no new land.
The limited space in San Francisco has been commented on by Daniel Cressman who is the executive vice president of the commercial real estate company Grubb & El. According to him, the San Francisco market is one of the few markets in the whole of U.S. where the demand in investment for commercial office space far outstrips the available supply for sale. All these factors culminate in making San Francisco one of the best real estate markets in the country.
Sellers do not always reveal the entire truth about their homes to prospective homebuyers. This can often particularly be true when they have a strong incentive to sell, especially in the current real estate market. While you might not be able to afford to hire a professional inspector for every home you consider before making an offer, there are some steps you can take to assist you in spotting possible problems on your own.
1. Massive Migrations in the Neighbourhood
Never make the mistake of assuming that just because the house you are considering looks nice, everything is wonderful. Take the time to look around the neighbourhood. Are there many other homes for sale in the area? Have nearby businesses closed or been vandalised? Do not hesitate to chat with the neighbours and ask questions. If everyone else is leaving the neighbourhood, there is like a good reason.
2. Poor Maintenance
Always be on the lookout for possible signs the current owners may not be maintaining the home. Such signs might include gutters that have not been cleaned, an unkempt garden and peeling paint.
3. Problems with the Foundation
Be sure to inspect the front garden and drive to see whether it slopes toward the house. If so, it could result in water running toward the foundation walls or even into the basement. Both issues can be an expensive repair. Carefully inspect the foundation for possible signs of damage. Look for cracks or bulges, which can indicate serious structural problems.
4. Bad Odours
Be cognizant of the smells inside as well as outside the home. If you notice any unusual smells, be aware this could indicate an issue. At the same time, realize that an overpowering odour of air freshener could be use to cover up something else.
5. Antiquated or Faulty Wiring
Even though you may not have a background in wiring or electrical work, take the time to test all of the outlets and switches. If you notice circuits that are not operative, flickering lights or hot faceplates or outlets, be aware this could be a sign of wiring issues.
6. One Wall that is Freshly Painted
While a new coat of paint can certainly give a home a fresh appearance, it can also sometimes be used to hide much larger problems such as mildew or mould damage or even water damage. Take note of whether there are any strange smells, saggy ceilings or walls or stains. If you notice any of these indications, do not hesitate to have a professional inspector check for leaks or mould.
7. Blockades or Locked Doors
When viewing a home and considering it for purchase, there should never be any areas that are off limits while you are touring the home. If any areas are restricted to you, make arrangements to see those areas at a later time if you still have an interest in that home. There could well be a good reason why some rooms in the home are locked but you will need to make sure you view them at a later time before you make a purchasing decision.
8. Windows that are Non-functional
Check to be sure all of the windows are actually functional and also that none have cracks and reveal condensation between the double-glazing.
9. Floors or Structural Walls that Have Been Removed
While you might love the home’s current floor plan, take the time to ask whether any renovations have been completed. If a load-bearing wall has been removed without any other adjustments being made, weight can be shifted to other portions of the home. If so, retain the services of a structural engineer.
10. Pest Problems
Certainly, no one wants to buy a house with pest issues. Vigilantly look for signs of possible pests, such as mice or roaches. Even if you do not notice any signs on your own, consider hiring a pest inspector if you think you might purchase the property.
Andrew Potter who runs UK online estate agent, “My Online Estate Agent” wrote this guest post. “My Online Estate Agent” is one of the UK’s biggest online estate agents and advertises all it properties on Zoopla and the other UK’s top property portals as well as providing a range of comprehensive tools and guides.
Houses that have too little room, have too few bedrooms, that are in a bad location, or that are not aesthetically pleasing can be very tricky to sell. Little things can make it challenging, too, though. Old appliances, carpet stains, and odd wall treatments can thwart your selling attempts. If you are finding it difficult to find someone who will take your home off your hands, there are some great tips that can help to make that sale.
- Get together with a real estate agent and discuss your home. Ask him or her how your house rates – agents know what features are currently sought after and which will turn buyers off. A real estate agent can help you figure out which issues are making it a difficult sale. Most will also have some ideas to help improve your house’s appeal to prospective buyers.
- Think about leasing to people. It can often make it easier to make a sale in the future if you lease. Many people want to buy a home of their own, but they don’t want to be forced to deal with the closing costs. If you lease the house to someone for a time, once the leasing period is up, they will be able to use the equity that has been earned as a down payment on buying the house outright. This makes it far easier for the person leasing to qualify for a home loan that will be put toward buying your house.
- Redecorate. This doesn’t have to cost a lot, since just a few simple changes can make a world of difference. Many potential buyers are turned off by the color choices that you might think are beautiful and unique. They, however, want to see the house as a blank canvas for their belongings. Take down any patterned or brightly colored wallpaper. Paint all of the walls in your home a neutral shade of white.
- Some extra lighting can make your home look more positive and larger. Dark rooms put people off because it makes the house seem small and gloomy. This could be as simple as putting in some brighter light bulbs, but you might need to buy a few floor lamps for particularly difficult-to-light rooms.
- Clutter is another culprit that can cause your home to look much smaller than it is. Furniture is the number one problem here. Many people fill their living rooms, bedrooms, and dining rooms with furniture to make it seem cosier. When you start trying to sell your home, remove some of the furniture and decorative items like knick-knacks and collections. Clean kids’ rooms and make sure everything in them is organized – spacious bedrooms are a great selling point.
- Improve your home’s curb appeal. First impressions are everything – when a buyer drives up, they have already made judgment. If your grass is tall and there is clutter all over your lawn, the windows are dirty, and your brick or siding is filthy, those prospective buyers are more likely to drive away immediately. They will assume that the inside is in the same condition. Clean up the outside of your home, have your lawn manicured, plant some flowers, add a little lighting along the walkway, and make sure that the garbage is off the curb.
- Be careful not to overprice your home. If the market in your area is low, it will be very hard to get top price. Though it can be hard to lose the money, it is better to under price your home and get buyers who will snap it up quickly.
This article was written by guest author Andrew Potter. Andrew Potter works for My Online Estate Agent, a UK based online estate agent where you can advertise on Rightmove, Find a Property, Zoopla and Primelocation.
Does every cloud really have a silver lining? I believe it to be so. Rather than lamenting it, take advantage of our current economic situation. With the combination of low interest rates and low housing prices, Austin real estate company HomeCity.com believes now could be the best time to invest.
The CNN story, “Real estate: It’s time to buy again,” provoked quite a stir on the web, from both supporters and opponents. One cyber-pursuer retorts: “Ha! What a joke.” Despite these cynical reactions, optimistic predictions about real estate are become more common among economists. This is partially due to the economic growth. A survey of economists and policymakers recently indicated that the gross domestic product, the “single most comprehensive indicator of the economy’s health,” will likely grow 2-3% this year. The prediction of economic assures us that the housing market will get stronger in due time.
So, real estate will improve, but why should you buy now? Any real estate mogul will suggest trying to buy at the bottom of the market and, as studies indicate, we are pretty close to the bottom. One study by Deutsche Bank shows that homeowners now pay just 9.8% of their income in after-tax mortgage, tax, and insurance payments, down from 17.2% at the market’s peak in 2007. Additionally, with such low prices, home-buying has become incredibly affordable. Phil DeMuth, co-author of the hot-of-the-press Little Book of Alternative Investments, encourages his readers to buy by explaining that “Housing prices are where they were in 2002 and you’ve got mortgage rates at 5% now on a 30-year mortgage.” If you can qualify for a good mortgage, DeMuth says, “I’d say this is an excellent time to take that kind of position.”
Even further, the dream houses that we couldn’t afford before are now attainable.
Robert Glaser, CEO of Smith & Associates Real Estate, explains that “with housing prices well below what they sold for a few years ago, and with mortgage rates below 5%, luxury homes that once seemed unobtainable are now within reach of more buyers.” But, as Glaser warns, “We expect the market has started to steady out as the inventory of attractively priced, well-located homes in the luxury range decreases, and as sellers attempt to begin raising property values again. But for the moment, there are still some great bargains out there.” The moment is fleeting and therefore as buyers, we’ve got to act fast. Happy shopping.