Bulgaria’s Hottest Property Spots

Hot-spots


Sunny Beach
The country’s largest package holiday resort has a good beach with excellent leisure facilities, entertainment and activities. It is close to Bourgas’ international airport and has been a focus for building and buyer interest, although over-development is becoming a problem, with a glut of new properties meaning unreliable rental returns.




Golden Sands
A large package resort with a good beach and facilities set in pretty surroundings on the forested coast north of Varna. Easy access to Varna airport and the city. Strict building controls have limited development and ensure strong demand for property.


Bansko
The country’s largest ski resort, which is enjoying major infrastructural investment, including a new golf course. The negative impact of rapid development could be reduced by a clamp-down on new developments in the area.


Pamporovo
European’s most southerly ski-resort is increasingly popular with the British


Veliko Tarnovo 
The picturesque countryside around this historic city is the target for a growing number of foreign buyers looking for peaceful rural retreats and renovation properties. The beautiful scenery has led the area to be dubbed “Bulgaria’s Tuscany”. 


Sofia
Renovation properties and off-plan developments in the country’s capital are popular with investment buyers for their solid rental returns and capital appreciation.




Rising Stars


Balchik
A small seaside town, north of Varna, that is near a new golf course development. Easy access to Varna city and its airport. 


Byalla
A quiet beach resort favoured by Bulgarian holidaymakers, which is set in beautiful countryside halfway between Bourgas and Varna.


Ruse
Provincial city on the Danube that has a hinterland of unspoilt countryside dotted with villages.


Sozopol
An atmospheric seaside town with good beaches that is close to Bourgas airport.


Borovets
A small ski resort near Sofia that has been slated for major investment.

http://www.acelloria.com/blog/?p=467

Living in Costa Rica – An Affordable Slice of Paradise for all Budgets

People are migrating to Costa Rica in record numbers, and if you’re thinking of retiring, buying a second home, or starting a business - living in Costa Rica is much easier than you may think - and the benefits are huge - and affordable for everyone.

Why Live in Costa Rica?

There are many reasons people choose to live in Costa Rica - and they include stunning natural beauty, a slower paced lifestyle, low crime, great infrastructure - and you get a LOT for your money.

Let’s look at some of the reasons why more people are moving to Costa Rica than ever before:

Property

If you’re moving to Costa Rica, the first thing to consider is the cost of property - and the good news is that it’s cheaper in comparison to the US - with beachfront properties costing up to 75% less!

The cost of a three bedroom home starts at just $60,000.

Property taxes are minimal, and there’s no capital gains tax when selling your home - and overseas buyers have the same rights as residents, so you’re legally protected.

Hired help is also inexpensive – you can hire a full-time maid for as little as $150 to $200 a month.

Also consider this: A $30,000 home purchased 15 years ago is now worth $800,000 today. Therefore, you can also make money when living in Costa Rica - from the steadily rising property prices – making it an ideal place to buy a second home.

Cost

When you live in Costa Rica you get more for your money - and this is a major attraction, with just about everything being cheaper than in the US. In addition, there’s a favorable exchange rate - and lack of inflation means your money goes further.

The cost of medical care, food, general utilities and entertainment are substantially lower than in the US. You’ll pay up to 70% less for groceries – or you can dine out for about $12.00 a head. Utility bills are also substantially cheaper.

By living in Costa Rica, you get access to world-class healthcare at up to 70% less than back home - and medical insurance is cheap.

If you move to Costa Rica, you’ll find that you can have a comfortable lifestyle for around $2,000 a month.

Lifestyle

Many Americans who now live in Costa Rica, like the slower paced, friendlier lifestyle - where people have time for each other - but you don’t have to give up your home comforts.

Living in Costa Rica means, you can still get a lot of U.S. culture - including excellent shopping, cable TV, and cheap communications.

The infrastructure is simply excellent - and with regular flights to the US that take just 3 hours to most of the southern US cities - you need never feel homesick.

One major attraction of living in Costa Rica though is the weather. Fed up with freezing winters and scorching summers? Then consider this:

Temperatures of 80 degrees during the day, and 60 to 70 degrees at night, make it a comfortable climate all year round. Living in Costa Rica gives you a wide range of recreational activities, including:

. Golf

. Fishing

. Surfing

. Diving

. White-water rafting

Alternatively, you may just want to stroll through some of the most beautiful scenery on Earth - well, living in Costa Rica gives you all this and more.

Safety

Latin America is now very popular, but if you’re choosing a country in this area, then living in Costa Rica has advantages over its rivals.

Neighboring countries such as Nicaragua, Belize, Honduras and Guatemala are cheaper - but the quality of life and infrastructure are not as good.

Furthermore, safety is a major concern - as petty crime, violent crime, kidnappings, as well as drug wars, are a problem in these countries.

In conclusion, living in Costa Rica gives you a better and safer lifestyle - with something for everyone.

Living in Costa Rica is an adventure that can enhance your lifestyle. You’ll only be bored if you want to be - and Costa Rica suits people with ALL budgets.

If you’ve ever dreamed of living in paradise, then you should consider living in Costa Rica.

http://www.acelloria.com/blog/?p=463 

Building A Home In Sarasota, Florida: What You Need

Sarasota, Florida certainly is a magnet for those seeking the ultimate vacation house, as well as the permanent home, since the place offers a wide variety of enlightening experiences within beautiful surroundings.

Historically, people are not quite sure how Sarasota derived its name. One theory is that it was named after the daughter of Hernando De Soto, Sara. De Soto, along with Ponce de Leon and Panfilo Narvez, were the first explorers to land on the Gulf Coast in search of gold and silver. Another legend says that the name may have been derived from the Spanish "sarao sota", which when translated means "a place of dancing."

Sarasota, Florida is a fantastic, and colorful city. With a population of over 53,000, there are a lot of options for housing that are accessible to prospective homeowners. If you are considering building a home in Sarasota and need more information in regard to modular homes, there are assorted companies available to provide you and your family the very best home for your needs.

The Sarasota market continues to gain strength compared to the overall state of Florida, according to the Sarasota Association of Realtors. For example, Condominium purchases went up by 12% in July 2007, as compared with 141 sales in July 2006. The median sales price was up 14.8%, from $269,990 in July 2006 to $310,000 in July 2007. Single family home sales went up by 5% from 351 in July 2006 to 369 in July 2007, but median sales price was down 14.5%. Statewide however, the real estate market saw a decline of 24% from July to July for single family homes.

In deciding to build a home in Sarasota, there are some more questions to ask yourself and priorities you need to establish. Here are the stuff you need to consider:

* How much could you really afford in buying a home. A local mortgage company can help you answer this question.
* How much space do you need, or want.
* Are there specific areas of town that you prefer.
* How many bedrooms and baths do you feel you need ?
* Find out other amenities are important to you (ex: eat-in kitchens, family room, pool, attached garage, etc)
* How big a lot of land would you like to have
* Should the house be close to certain schools, your job, or public transport

In looking for housing developers and contractors in Sarasota, it would be best to check out the local yellow pages for additional support, or chck on online developers and real estate agents. One notable local developer would be McKenzie Builders LLC. McKenzie Builders is a full service residential construction company building affordable homes in Manatee and South Hillsborough counties on Florida's beautiful Gulf Coast, with over 20 years of building experience in this area.

Another noted Sarasota developer would be Vision Homes of Southwest Florida. Vision Homes, according to its website, “ has redefined what "Excellence" means when it comes to residential design and building for the 21st Century”. Vision Homes is also acknowledged as Sarasota's Leading Builder of Energy-Efficient Green Building Technology.
http://www.acelloria.com/blog/?p=459

Brazil: The Latest Exciting Emerging Real Estate Market

Since 2003 the Brazilian Government have committed to making major fiscal, political and fundamental changes to the country to improve the entire environment for foreign direct investment, as a result GDP growth rate is up, inflation is down and real estate prices are beginning to soar as overseas interest in the stunningly beautiful and amazingly diverse country of Brazil is intensifying.

Because Brazil is such a large country covering such a huge landmass it traverses many different geographic, environmental and climatic changes and offers a lifestyle alternative to suit everyone. The appeal of the country is immediately obvious to anyone who travels to Brazil on holiday and because the path has been smoothed for foreign freehold ownership of real estate in Brazil, more and more people who visit the country are choosing to buy a holiday home or investment property in the country.

The most popular area with holiday makers, second homers and now retirees is the north east of Brazil where the weather is at its best and where the coastal regions are home to stunning palm fringed beaches and growing communities of expatriates who are enjoying the laid back, low cost lifestyle they can achieve in Brazil.

It is in this part of the country that real estate prices are really starting to go up. The demand for real estate to buy and let is growing rapidly and the purchasing power of those overseas investors entering the market place is strong enough to support property price increases.

Anyone considering the world’s emerging real estate markets for maximum opportunity will find what they’re looking for in Brazil. The country has an active commercial property market, an active tourism market and local and overseas demand for housing is strong, therefore sufficient demand for real estate in Brazil exists creating the perfect environment for profit and gains.

A final additional tick in the suitability box for Brazil as a destination for investment is the fact that the real estate buying process for foreign purchasers is straightforward, and additional taxes and fees associated with purchasing and owning property or land in Brazil are very low.

http://www.acelloria.com/blog/?p=453 

Appraisal - Valuation of Subsidized Housing

The purpose of this article is to analyze valuation methodology for several atypical types of apartments. Various circumstances and situations can cause an apartment complex to have above-or below-market rental rates, occupancy rates and operating expenses. This analysis examines the following two situations:

1. low-income subsidized apartments, which receive above-market rental rates from HUD or another government agency, and
2. projects that are part of the Low Income Housing Tax Credit (LIHTC) program.

The LIHTC program was established by the U.S. Congress to encourage development of affordable housing in economically disadvantaged areas. Project developers receive a tax credit for following the guidelines established by the program. They typically sell these credits to Fortune 500 corporations for 45 percent to 60 percent of the total project cost, excluding land.

The first step in the valuation process is analyzing market value definitions. The following is the definition from the Texas Property Tax Code, Section 1.04 (7): market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

a. exposed for sale in the open market with a reasonable time for the seller to find a purchaser,
b. both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions to its use, and
c. both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

Section (b) of the Texas Property Tax Code further requires: the market value of property shall be determined by the application of generally accepted appraisal techniques, and the same or similar appraisal techniques shall be used in appraising the same or similar kinds of property. However, each property shall be appraised based upon the individual characteristics that affect the property's market value.

The definition of market value, according to the 10th edition of The Appraisal of Real Estate published in 1992 by the Appraisal Institute, is: market value is the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.

The term which requires further review in the above definition is "knowledgeably." Is the purchaser knowledgeable regarding the effort required to comply with subsidized housing program requirements and tenants? Does he consider the effort to be rent for real estate or compensation for services? Does the purchaser of an LIHTC project understand that maximum rents are now established for at least 15 years based on deed restrictions? (LIHTC deed restrictions are now required for 30 years in Texas and most other states.)

Fee simple estate is defined in the third edition of the Dictionary of Real Estate Appraisal published by the Appraisal Institute as: absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.

The practice in Texas is to base the assessed value on the value of the fee simple estate as opposed to the leased fee estate. This analysis is based on valuation of the fee simple estate instead of the leased fee estate.

The definition of leased fee estate in the third edition of the Dictionary of Real Estate Appraisal is: an ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

The primary difference between the fee simple estate and the leased fee estate is that the tenant and landlord are each bound by commitments to pay rent and allow use of the property for a term. The contract rent agreed to between landlord and tenant may or may not be equal to market rent. For example, if a landlord entered into a 30-year lease for rent of $5 per square foot 15 years ago (when market rent was $5 per square foot) and the current market rent is $10 per square foot, the tenant has a substantial advantage. The tenant has a leasehold estate which may or may not have value depending on the term of the lease, the contract rent and market rent.

The Dictionary of Real Estate Appraisal defines leasehold estate as the interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.

Conversely, if the tenant agreed to a rental rate of $15 per square foot in a strong market 10 years ago, and is committed to pay that rent for another 10 years, there is a substantial advantage to the landlord, and the tenant has a leasehold estate with a negative value. Practice in Texas is to establish the assessed value based on the fee simple estate instead of the leased fee estate. Therefore, the relevant criteria for determining market value includes market rent, market expenses, market occupancy and market derived capitalization rates. If a taxpayer made a poor business decision 10 years ago and has substantially below-market rent, it is inequitable for the taxing entities to reduce their ad valorem tax due to the bad business decision of the property owner. Conversely, if a property owner made a fortuitous or wise business decision and entered into an above-market lease, it is not appropriate to collect an above-average level of ad valorem tax from him because of his luck or prudence.

Market rent is defined by the third edition of the Dictionary of Real Estate Appraisal as: the rental income that a property would most probably command in the open market; indicated by current rents paid and asked for comparable space as of the date of appraisal.

Market rent is the compensation paid for the use of the real estate. It should not include compensation paid for factors other than the use of the real estate such as additional services which are not typically provided.

The next step in this process is to analyze valuation of properties which participate in subsidized programs which receive above-market rental rates. The final section will address valuation of projects in the LIHTC program.

Valuation of Subsidized Housing

This analysis will consider both the income and the sales comparison approaches to value. The cost approach is not utilized since it would provide similar results after calculating external obsolescence due to differences in rental rates.

Income Approach:

Apartment owners who participate in subsidized housing programs may or may not receive above-market rental rates. For many years, HUD offered above-market rental rates as an inducement to property owners to participate in the program. There are two reasons for HUD paying an above-market rental rate:

1. to compensate for the inconvenience of dealing with a bureaucratic government program which mandates detailed inspections not typically required in the private market; and
2. to compensate for working with residents who tend to be at the lowest socioeconomic level in our society.

It has not been unusual for HUD to pay contract rent of $0.70 to $0.80 per square foot per month for subsidized housing projects, even though the market rent for competing projects might only be $0.45 to $ 0.50 per square foot per month. The rent and sales comparables used in this analysis are located in a neighborhood characterized by income levels in the bottom quartile of the Houston area, minimal new construction of residential or commercial buildings for 25 years and heterogeneous levels of quality and appeal. Some sections, such as Riverside, have experienced gentrification, but other areas are marked by poorly maintained properties. Both the market rent projects and the subsidized rent projects are located in the area south of downtown Houston, bound by 288 to the west, Interstate-45 to the east, and Almeda-Genoa to the south.
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Arizona real estate

Arizona real estate market is really hot. The centre of a lot of action in Arizona is Phoenix metropolitan area. However, when it comes to real estate investing, every area is hot. Based on whether you are looking for Arizona real estate just as an investment avenue or whether you are looking for Arizona real estate to actually live in, your preferences would change a bit. However, one thing which you would always want is a low price. And that is something that would require some effort.
If you are looking to get a piece of Arizona real estate for yourself and your family, then you need to consider a lot of different things which will also influence your perception of the lowest (or the best price) for that Arizona real estate piece. Note that the best price for the same Arizona real estate piece might be different for different people (because their level of motivation to buy a particular Arizona real estate piece might vary). So, if you have a lot of friends living in a particular area in Arizona, then Arizona real estate in that area might become your preference and hence increase your motivation level. Similarly your buying motivation will be higher if you are planning to move into the place on account of a new job that you are taking up in that place or if you have been transferred to that place in your current job itself. If you have children, you would have to look around for Arizona real estate which has good schools around it. Again, you would like to evaluate your lifestyle and see if there is place that is in particular suited to your lifestyle.
So, there are a lot of factors that could lead to increased motivation levels. Generally, more the motivation of either side (buyer-seller), lesser is their negotiation power. So even if you are much motivated to buy a particular Arizona real estate piece, do not show it in front of the seller. Though hiding your motivation will be a bit difficult, nonetheless give it a good try. If you are looking for Arizona real estate just for investment purposes then you would probably have a lot more time on hand to evaluate various properties before you actually go ahead with one. So your buying motivation will not (and should not) be too high. Remember that if you have time on hand, you can always get better deals (and there are lot of Arizona real estate deals out there, if you were to look properly).
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Britain's Real Estate

The five ghastly "Jack the Ripper" murders took place in an area less than a quarter square mile in size. Houses in this haunting and decrepit no man's land straddling the City and metropolitan London could be had for 25-50,000 British pounds as late as a decade ago. How things change!

The general buoyancy in real estate prices in the capital coupled with the adjacent Spitalfields urban renewal project have lifted prices. A house not 50 yards from the scene of the Ripper's last - and most ghoulish - slaying now sells for over 1 million pounds. In central London, one bedroom apartments retail for an outlandish half a million.

According to research published in September 2002 by Halifax, the UK's largest mortgage lender, the number of 1 million pound homes sold has doubled in 1999-2002 to 2600. By 2002, it has increased elevenfold since 1995. According to The Economist's house price index, prices rose by a further 15.6% in 2003, 10.2% in 2004 and a whopping 147% in total since 1997. In Greater London, one in every 90 homes fetches even a higher price. The average UK house now costs 100,000 pounds. In the USA, the ratios of house prices to rents and to median income are at historic highs.

One is reminded of the Japanese boast, at the height of their realty bubble, that the grounds of the royal palace in Tokyo are worth more than the entire real estate of Manhattan. Is Britain headed the same way?

A house - much like a Big Mac - is a basket of raw materials, goods, and services. But, unlike the Big Mac - and the purchasing power index it spawned - houses are also investment vehicles and stores of value. They yield often tax exempt capital gains, rental income, or benefits from occupying them (rent payments saved). Real estate is used to hedge against inflation, save for old age, and speculate. Prices of residential and commercial property reflect scarcity, investment fads, and changing moods.

Homeowners in both the UK and the USA - spurred on by aggressive marketing and the lowest interest rates in 30 years - have been refinancing old, more expensive, mortgages and heavily borrowing against their "equity" - i.e., against the meteoric rise in the market prices of their abodes.

According to the Milken Institute in Los Angeles, asset bubbles tend to both enhance and cannibalize each other. Profits from surging tradable securities are used to buy property and drive up its values. Borrowing against residential equity fuels overvaluations in fervid stock exchanges. When one bubble bursts - the other initially benefits from an influx of funds withdrawn in panic from the shriveling alternative.

Quantitatively, a considerably larger share of the nation's wealth is tied in real estate than in the capital markets. Yet, the infamous wealth effect - an alleged fluctuation in the will to consume as a result of changing fortunes in the stock exchange - is equally inconspicuous in the realty markets. It seems that consumption is correlated with lifelong projected earnings rather than with the state of one's savings and investments.

This is not the only counter-intuitive finding. Asset inflation - no matter how vertiginous - rarely spills into consumer prices. The recent bubbles in Japan and the USA, for instance, coincided with a protracted period of disinflation. The bursting of bubbles does have a deflationary effect, though.

In a late 2002 survey of global house price movements, "The Economist" concluded that real estate inflation is a global phenomenon. Though Britain far outpaces the United States and Italy (65% rise since 1997), it falls behind Ireland (179%) and South Africa (195%). It is in league with Australia (with 113%) and Spain (132%).

The paper notes wryly:

"Just as with equities in the late 1990s, property bulls are now coming up with bogus arguments for why rampant house-price inflation is sure to continue. Demographic change ... Physical restrictions and tough planning laws ... Similar arguments were heard in Japan in the late 1980s and Germany in the early 1990s - and yet in recent years house prices in these two countries have been falling. British house prices also tumbled in the late 1980s."

They are bound to do so again. In the long run, the rise in house prices cannot exceed the increase in disposable income. The effects of the bursting of a property bubble are invariably more pernicious and prolonged than the outcomes of a bear market in stocks. Real estate is much more leveraged. Debt levels can well exceed home equity ("negative equity") in a downturn. Nowadays, loans are not eroded by high inflation. Adjustable rate mortgages - one third of the annual total in the USA - will make sure that the burden of real indebtedness mushrooms as interest rates rise.

The Economist (April 2005):

"An IMF study on asset bubbles estimates that 40% of housing booms are followed by housing busts, which last for an average of four years and see an average decline of roughly 30% in home values. But given how many homebuyers in booming markets seem to be basing their purchasing decisions on expectations of outsized returns—a recent survey of buyers in Los Angeles indicated that they expected their homes to increase in value by a whopping 22% a year over the next decade—nasty downturns in at least some markets seem likely."

With both the equity and realty markets in gloom, people revert to cash and bonds and save more - leading to deflation or recession or both. Japan is a prime example of such a shift of investment preferences. When prices collapse sufficiently to become attractive, investors pile back into both the capital and real estate markets. This cycle is as old and as inevitable as human greed and fear.

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How To Buy An Apartment Building

How to buy an apartment building? You could start with a look in the newspaper, a visit to a broker, or a search online - all good ways. Of course, since you're looking at the same properties as every other investor, it's not always easy to beat the competition to the great deals. Is there a better way?

Why not look for properties that aren't yet for sale, and make an offer? This is how I bought my first home. An ad in the paper stating what I was looking for, brought a call from an old couple that had been thinking about selling. I got a good price, and they saved a real estate agent's commission. Trying to buy an apartment building this way may be even more likely to succeed.

Buying apartment buildings that aren't for sale starts with a three step search process. you first decide what you're looking for. Do you want duplexes and four-plexes, or larger apartment buildings? The second step is to start looking for properties that fit your criteria. Finally, you contact the owners.

<b>How To Buy An Apartment Building From Non-Sellers</b>

First of all, don't limit yourself to "fixer-uppers" or other "problem" properties that seem more likely to have owners willing to sell. Probably most owners of rental properties have thought of selling, so you can start with almost any building.  How can you tell when or why a landlord is ready to call it quits? By asking.

Of course, tact is necessary. When you call the owner, tell him you're an investor, not a broker. Tell him you like what you see, and you can have an offer ready in a week if he's interested. What if he's not interested? Thank him politely and hang up, but send him your card or a letter. Investors often buy from owners that change their minds.

If the owner is interested, explain that you are an investor, so your offer will have to be based on your return on investment. That means you'll need to see the books, specifically the rent roll, listing the units and what they rent for, plus current occupancy. You'll also need the total income and operating expenses for the last year.

Pepare a confidentiality agreement ready before you call, and let the owner know you'll sign it and deliver it before you see the books. It's possibble he doesn't want the tenants to know he's thinking of selling. If so, inspecting the units may have to wait until you make an offer. Just make an acceptable inspection a contingency in the offer.

Why should you buy income properties this way? Because having no competition and no sales commission can mean a better price. Because instead of waiting for that perfect property to be listed for sale, you just find it now. Look for it, find it, and make an offer. That's how to buy an apartment building.

How Appraisals and Assessments Differ

Many people think appraisals and assessments are the same thing or at least that they should be for the same amount. The truth is they can vary greatly. Let’s look at each of them.

Appraisals

An appraisal is an estimate of market value. An appraiser can use many methods for coming up with this estimate. For income producing property, the appraiser may capitalize the value of the income stream. (It would take “x” dollars of capital invested at a “y” rate of return to produce an income equal to the rental income generated by this property.) For other properties, an appraiser may use “replacement value.” (It would cost “x” dollars to build this structure if it were being built today.)

Appraisers usually use “comparable sales” when evaluating the market value of a home. They look at nearby properties with similar characteristics, which have sold in the recent past to see at what price they sold. They typically give the most weight to the property they deem to be most like the property they are appraising.

Buyers and sellers generally encounter appraisals when the buyer’s lender has an appraiser make an evaluation of the market value of the property being sold. The lender wants to be sure of the value of the collateral for the loan. An interesting feature that comes into play in this situation is that one indication of value is at what price two unrelated parties will agree to buy and sell the same property. In other words, what is the contract price the seller and buyer of this property agreed on (if they are not relatives).

Assessments

An assessment is the value your local government puts on your property for the purpose of taxing it. How this value is derived varies from jurisdiction to jurisdiction. Some communities say the value is the same as market value. Some say the value is a percentage of market value. Some appear to actually do what they say they do, and some do not.

I was once a partner in an investment property that we were offering for sale at the time the county re-assessed it. Imagine my annoyance when the assessment came in at one hundred and forty percent of the offer price. We weren’t dummies. The partners were real estate professionals. I appealed the re-assessment, but my appeal was turned down. I offered to sell the property at the assessed price to the appraiser the county had hired to handle the appeals when he was telling me why he could not reduce our assessment. He did not take me up on my offer. Our property sold at the listed price months later. We had paid six months’ taxes on the property at a higher than market value.

On another occasion I helped some elderly people sell a farm they’d lived in all their adult lives. The farm sold for a price a great deal higher than the value at which it had been assessed.

I believe the two examples are fairly typical. Many jurisdictions will “puff up” assessments for businesses and investors and “low ball” assessments for people who have lived in their homes for a long time. Sometimes there are formulas for doing this. “Land use” is one such concept, i.e., the property is taxed at its value as a farm and the fact that it is ripe for dense residential and commercial development is ignored or deferred. Sometimes there are no formulas. It is just done.

For these reasons, it is usually not a good idea to put too much credence in the assessed value of a property when you are trying to figure out market value. They may be the same. They may be vastly different.

Issues in Real Estate

When we speak of the real estate economy, we use national statistics but speak locally. On the other hand the stock market is based on the national or even the world economy. The real estate markets are based on local or even micro-local economy. What is happening in LA may not directly affect what is happening in Toledo.

What affects all real estate markets together are the interest rates. There is no single barometer to measure the entire housing industry in US.

So, while statistics calculations and economic factors are relevant, equally important is using one’s common sense. We must keep our eyes wide open and take a look around and see what is happening. Talking to real estate agents, investors and lenders in a particular area can be a big help to access a market.

These are certain issues one must consider while dealing in real estate.

One major issue facing corporate real estate managers is how to effectively manage the real estate assets in the current market environment.

Secondly, real estate agents provide information about utilities, zoning, schools etc. But two common issues a buyer faces while buying are-
i. Will the property provide the right environment we want for a home?
ii. Will the property have a good resale value when we are ready to sell?

Another important issue that any buyer/investor faces is the legal issue. Real estate laws vary from state to state. One must consult an attorney licensed to practice law in the state in which the property is located.

At times, the property a buyer is seeking is available but not properly advertised. It may take you some time and effort to search for and locate the right property.

The important issue of finance. We must know our financial reserves plus our borrowing capacity. If we know about our current savings, income and debt, then we can take help from lenders; banks and mortgage companies, which offer some choices according to your financial capability.

In America, some real estate association and commissions have sponsored regulation that require all real estate brokers to provide a minimum level of services which forces sellers to buy services they do not want or need.

There is the issue of rebates on transaction fees. Some states in America allow rebates of commissions or fees on real estate transactions but some states have legislated regulations which prohibit rebates.

Next is the issue of consumer participation. The consumer federation of America released a study that real estate boards and commissions are dominated by real estate practitioners and they recommended greater participation by consumers; which is opposed by practitioners – this works against the interest of ordinary buyers and sellers.

Last but not the least, a lot of hoopla has been floating around in the news media about the ‘bubble’ theory of real estate and that the real estate market is going to burst – this may have a psychological impact on the potential buyer or seller.

Is FSBO safe?

Safety is often raised as an issue in FSBO (For Sale By Owner) real estate sales. Some real estate agents try to scare homeowners into listing with them by claiming that is unsafe. Some homeowners are unsure how to show their property safely.

By taking a few sensible precautions there is no reason why selling your home FSBO (also known as private sale) should be any less safe than selling through a real estate agent. In fact selling FSBO should be safer. There is nothing that a real estate agent does to vet buyers that FSBO homeowners cannot do for themselves.

What does a real estate agent do?

Real estate agents claim that they vet prospective buyers before they visit your property but what does this mean? Does the real estate agent check whether the buyer has a criminal record for violent crimes or theft? Of course they don’t. At best, the agent may get a name, address and contact number of the buyer before they visit.

Getting a contact number for buyers is easy, just ask when the buyer calls to enquire about viewing your property. Before the buyer visits call them back to confirm that they are still coming. This lets you confirm that the contact number is genuine and also reduces the likelihood of no-shows.

FSBO advert contact details

It is advisable to limit the amount of information that you make available through online FSBO advertising. Some homeowners include their full name, telephone numbers, e-mail address, street address of the property for sale and times when they are at home. Whilst including this information is not enough to forge documents such as a passport it is enough to gain unwanted attention from confidence tricksters.

A potential buyer only needs to know your first name to make polite initial contact. There is no need to include your surname and titles in your FSBO advert.

Choose an online advert that protects your email address. There are programs that trawl the web looking for published email addresses. If you post your email address in your FSBO advert you are asking to receive spam.

The better FSBO sites such as www.acelloria.com have online messaging systems that allow buyers and sellers to communicate online while keeping email addresses private

When selling your own home a mobile (cell) phone is invaluable. Not only are homeowners less likely to miss a call from a potential buyer but also a potential thief cannot cold call the property to check whether anybody is home.

Open house inspections

We don’t recommend holding an open house viewing when selling your property. Open house inspections are hard to supervise and many buyers find viewing a property with lots of other buyers unproductive and frustrating.

Real estate agents use open houses as a way of getting leads about other properties that are for sale. Often the real estate agent will stand at the front of a house to make sure buyers receive details of their agency. But once inside the property buyers are allowed to roam around unsupervised.

Potential thieves can use open house inspections to check out security systems and case the properties if left to roam unsupervised. Don’t provide too much detail relating to your home’s security system to a buyer on their initial visit.

Common sense rules

When you are holding viewings of your property follow these common sense rules:

Remove all valuables from the property. Take them off site preferably in a safe deposit box. Don’t just put them in a drawer.

Make sure there are two people in the property at all times. Ask a friend or family member to accompany you. Only one of you need conduct the viewing.

Keep blinds and curtains open during viewings this allows people outside to see in to the property and will potentially deter somebody thinking of getting up to no good.

Showing your property after dark

Allowing buyers to drop in for viewings without a prior appointment is not recommend and especially not if the buyer is requesting an impromptu viewing after dark. Politely explain that you’re happy to show your home during daylight hours, when the buyer can fully appreciate your home’s wonderful features. Offer a flyer or information sheet to take away.

FSBO may not be for you

FSBO is not for everybody. In order to sell your own home you must be prepared to show potential buyers around the property. If you are uncomfortable doing this or feel that your circumstances would make you especially vulnerable it would be wise to consider using a traditional real estate agent.

Good Faith Deposit – Real Estate Transactions

In a real estate transaction, a touchy issue is how much trust the seller has in a buyer. The existence of a good faith deposit helps put a seller at rest.

Good Faith Deposit

If you are selling your home, condominium or other real estate, you should always require a buyer to make a good faith deposit. The good faith deposit simply establishes that the buyer is serious and, to some extent, has the financial capacity to follow through on the purchase.

The amount of the good faith deposit is dependent upon the agreed sale price of the real estate. Although percentages vary from state to state, a cash deposit equal to three percent of the sales price is typical. For instance, the deposit would be $9,000 for home selling at a price of $300,000. As with most transactions, this percentage is negotiable. I don’t recommend that you accept anything less than two percent.

Once the buyer and seller agree to the amount of the good faith deposit, you have to figure out what to do with the deposit. Importantly, the seller should not hold the deposit as doing so could make the buyer very uncomfortable. Instead, the money should be deposited with a third party and held “in trust.” Potential third parties include escrow and title insurance companies as well as an attorney if your state requires their involvement.

A good faith deposit acts like an insurance option for a seller. Moving through escrow can take 30 to 60 days, during which the property is off the market. The good faith deposit essentially compensates the seller for this time in the event the buyer is unable to follow through on the purchase of the property.

Depending on the laws in your state, a buyer who can’t close will lose the deposit. Typically, the only exception to this is when the seller allows language indicating the deposit will be returned if the buyer can’t get a home loan. Of course, including such language can open the seller up to repeated frustration when bad credit buyers repeatedly fail to get funding.

Good faith deposits are a fundamental part of a real estate transaction. Buyers should expect to pay them and sellers should demand them.

Creative Real Estate Financing

Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.

1. Use hard money lenders. Ask around or find these online. These lenders specialize in short-term loans at high interest. Typically, you use this type of financing for a "fix and flip." You can get the money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months?

2. No-doc or low-doc loans. With these loans, no (or low) documentation of your income or credit is required. You can find banks that do these online now. You'll only be able to borrow 70% to 80% of the purchase price or property value. However, if you have 10% in cash, you might be able to borrow the other 10% or 20% from a friend or the seller.

3. Seller financing help. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.

4. Land contract or "contract for sale." Called other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for $1,000 down, because I wanted the 9% interest, and the higher price I got.

5. Credit card advances. Suppose a seller will take $10,000 down on a fixer-upper that you expect to make $20,000 on. Why not use credit cards? If your card limits allow for repair money too, this is a true 0-down deal for you, and if you turn the project in six months, you will have paid maybe $1,000 or $2,000 in interest on an 18% credit card. Don't let $1,000 get in the way of making $20,000.

6. Use your retirement accounts. The laws are pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.

7. Borrow from friends and family. If you go this route, keep it all business. In any cae, loaning you money at 7% isn't a gift if their money is getting 2% in the bank.

8. Use real estate note buyers. Suppose the seller needs cash. He raises the price, and sells to you for $100,000 with no money down, taking back two mortgages from you for $90,000 and $10,000. He arranged (or you did) for a note buyer to pay him $80,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder, but you got in with no money down.

9. Borrow on another property. If you take out a home equity loan for a vacation, and then forget to use it for that, you can later use the money for the downpayment on an investment property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.

10. Start partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.

Remember, these ten creative real estate financing techniques are just to get you started.

How To Climb The Equity Ladder In Real Estate

As one of the most secure investment areas, real estate is currently making more money for more people than almost any other area of investment. All you really have to do to see this is watch some TV, you will see any number of get rich schemes that are based on purchasing property. While most of these schemes are just that, the truth of the matter is that real estate makes money. In recent years real estate has made more millionaires than any other investment, and this trend is continuing. Smart investors continue to put their money where they know it will grow.

When investing in real estate one needs to make some important decisions before the purchase is ever made. You will have to decide if you are going to be a landlord or simply flip homes. Being a landlord can be a difficult undertaking. Remember that in being a landlord, one must deal with the negative aspects of the job. Kicking people out, collecting unpaid rent or having to fix things regularly can weigh heavily on a homeowner so don't choose the landlord route unless you are sure you can do it. If you choose to flip homes, then be sure to have money set aside for the renovations that you will no doubt want to do. This is the easiest way to ensure that you see a good profit on your investment.

In flipping homes, try to pick ones that are going to be easy to fix up. Location is also very important at this time, as a good location alone can sell a home. Purchasing homes in and around major commerce center or education district is good practice as these homes usually go for premium rates. Try to avoid homes that need extensive repairs or upgrades. These can cut into your profit margin and take precious time that could be better utilized by having the home on the market. Be sure to assess the risk involved with flipping a home. The renovations that you make must be able to justify the new asking price, so be careful and plan accordingly. http://www.acelloria.com/blog/?p=370

Mortgage Crisis Hit the Sales and Value of Real Estate

In a conference of US Mayors, experts said that in last 16 years this is the worst housing downturn. They have estimated that during the next year this will lead to the decline of property value by $1.2 trillion and will cut down tax revenue by more than $6.6 billion.

It was said that the California would suffer the hardest, as decrease in property value here will be around $630.6 billion. They also said that the New York City might face the utmost slowdown in the economic output because of the mortgage crisis.

The real estate market in United States, especially the residential subdivision is very uncertain as the prices are pushed down due to the increasing percentage of the foreclosures among the sub prime borrowers. The highest default rate is from the sub prime section. This has led to the record number of unsold homes.

In a recently released report on home sales by National Association of Realtors, it is very clear that the things are getting worse everyday. The report reveals the data of existing home sales in the month of October and it is actually a shocking one that shows the largest fall of existing home sales in last 8 years.

They said that during the last quarter home prices fell in one-third cities of the United States due to the strict lending process. This also caused decline in the nationwide home sales by 14 percent.

The October existing home sales including different types of houses were down 1.2 percent at a seasonally adjusted annual rate of 4.97 million units compared to the 5.03 million units of September 2007. The figures in October are 20.7 percent lower than the 6.27 million units that were sold in September 2006.

The seasonally adjusted annual rate of sales of new homes in October was at 728,000 units. This month there is a little increase of 1.7 percent above the revised September sales figure of 716,000 units. If we compare with the new homes’ sales figure of October 2006, then this is the sale is 23.6 percent lower than the 952,000 units of October 2006.

Experts believe that the 1.7 percent increase can barely be called as recovery; yet, there were few good signs in the report in the report. To start with, sales in all the regions except the West were positive enough compared to September with the longtime sufferer Midwest up by 14.3 percent month-over-month. Three of the four regions were still self-indulgent well below October 2006 figures but the Northeast, which had begun its downturn before the other provinces, was up by 43.6 percent when compared to the October 2006 sales.

Inventory was another positive sign in the report. During September there was a 9.0 month supply of new homes for sale nationally, a figure that had dropped to 8.5 months in October.

Experts believe that the fall in the value of the bonds backed by mortgages is the main culprit that has forced the US banks and financial institutions to take write downs more than $45 million and also tighten their lending standards. Falling home prices also created trouble in refinancing or selling the homes.

Canadians Keep the Secret of Sun City, Phoenix

The Phoenix Valley is a great place to live and be healthy. With recreational options abounding and sunshine for 300 days a year, it's no wonder that many people plan to move here. It is a very popular place for 'snowbirds'. There are many large companies offering varied job opportunities that insure a healthy economy for the Phoenix Valley.

There is also a fairly well-kept secret that - once discovered - entices a particular group from all over the world. This secret is an area, located only thirty minutes from downtown Phoenix, which has the largest concentration of year round recreational facilities in the whole United States! Of course the population group that loves it is the retirement community.

Not far from the Sun Dome and the Mayo Clinic is the aptly named Sun City. It boasts eight golf courses of its own from amongst the hundreds in Arizona, three country clubs, Sun Bowl, Viewpoint Lake, two bowling centers and seven recreation centers.

Sun City is the perfect place to retire to and it has even been made easy for you to have a peaceful retirement here! The whole area is a zoned 'adult' community.

This means that at least one resident of a Sun City home must be over 55 years of age and other residents must be over 19 years of age. Most homes in Sun City are single homes, apartments or duplexes, and there is no age restriction on property ownership. House prices in this area start at just over $100,000 and keep going up!

Sun City is a great community - one where, to some extent, you can have more 'say'. For instance, residents voted to have golf carts legalized for street use, and now they are a popular way to travel! This also reduces emissions, speeding cars and traffic jams!

Phoenix has its own International Airport, the 18th busiest airport in the world for passenger traffic. West Jet, Aeromexico and British Airways are among the international carriers alongside all the recognized U.S. carriers.

Not surprisingly, one of the carriers serving Phoenix Airport is Air Canada, supporting the many Canadians who leave their arthritis in the frozen North, and fly south for the warmth and dryness of the Phoenix climate. Phoenix is among the driest cities in the world, so there really are less aching bones and wheezing chests in this nurturing climate.

There are varied and interesting recreation classes offered. You can learn almost anything, from Tuscany Style Cooking to Beginners Boxing! If you are still wondering about basking in all this pleasant heat, there are actually courses to explain to you all about moving and living to the Phoenix Valley.

The state of Arizona supports hundreds of golf courses, many varieties of motor racing, horse shows, horse racing, rodeos and all the major sports. It even caters to the genealogy buffs and the model train addicts. In fact there's everything here in the Phoenix Valley - except you....?

Buying Real Estate for Your Family

The very best and most enjoyable reason to purchase real estate by far is in buying a property in which your family will live and grow together. There is a lot of fun involved in finding the perfect place for you and your family to call home. There is also a great deal of stress involved as well and that should not be overlooked.

Some things to keep in mind when searching for the perfect property for your family are the following:

1)      Make your first step the step of finding a realtor or buyer’s agent that you are confident has your needs, desires, and best interests at heart. Your realtor can prove to be a lifesaver when you’ve reached the final hours before closing and the sky looks as though it’s going to fall. Far more than that though, your realtor can help you find the home that you simply cannot see your family living without.

2)      Once you’ve found a real estate that you trust to help you find a home for your family it is time to identify the things that are absolute necessities in your search and those things you can live without. The most important thing to decide upon is a budget that you are comfortable living with.

3)      Once you’ve established a budget you need to decide the features that are important to meet the needs of your family. The number of bedrooms, bathrooms, square footage, and yard space. Do you need a fenced in yard or a basement? These things are important as they do affect the comfort and in some cases safety of your family.

4)      Another important thing that must be considered when purchasing a home for your family is the neighborhood. This is more important than many people may realize. It is well worth having a smaller home in a neighborhood that is poised for growth rather than a larger home in a neighborhood that is in the state of decline or on the verge of the state of decline. Crime rates in the neighborhood and the school district are other things that need to be considered as well before deciding to view a potential home.

5)      You should also take the time to look at several properties before deciding on one property over another. The more properties you see, the better the chances are that you will actually find the one perfect property for the needs of your family home. The more homes you see the more you will learn about your likes and dislikes. You will also get ideas about possibilities and things that can be added on to the home you eventually select. Regardless, the more homes you see, the more choices you have when the time comes to make a decision.

6)      Never offer the asking price right away. Even if you are willing to pay the full asking price, offer something a little lower and allow some negotiating room. Be sure, if you truly want the house in question not to be insulting with your offer but make the offer just the same. Some things you may want to consider when you make your offer is how quickly you are likely to need a new roof, new flooring, new heating or air conditioning, and countless other improvements that may need to be made on the property. Each of these things costs money and they add up over time. If everything is fairly recent and in good working order you may want to consider that when making your offer as well.

You will find many houses along the way but few will reach out and impress themselves upon you as home. Those are the ones you should consider long and hard. Weigh the options, the prices, and your likes and dislikes. If you do all of this you should be well on your way to the home of your dreams.

Home Equity Scams For You?

A home is the most expensive investment most people will ever own. For cash-strapped homeowners a home equity loan is a temptingly easy way to get cash. However, some home equity lenders are dishonest, and gullible consumers are at risk of losing their biggest asset. Borrowers should be wary of unscrupulous lenders and their scams to avoid losing their homes.

Financially unsophisticated homeowners, such as the elderly, members of minority groups and people with poor credit ratings, are often targeted by unscrupulous lenders using unethical lending practices.

One tactic used is called "equity stripping". In this instance, cash-strapped prospective borrowers who the lender knows cannot met the monthly payments are encouraged to exaggerate their income on the application form to help get the loan approved. As soon as the borrower fails to meet the monthly payment, the lender forecloses, stripping the borrower of all the equity in the home. Low-income homeowners should beware of lenders who encourage them to accept loans which they cannot afford to repay.

Another tactic is the balloon payment. A borrower who is falling behind in mortgage payments is offered mortgage refinancing at a lower monthly payment. However, the payments are lower because they cover only the loan interest. At the end of the loan term, the principal -that is, the entire amount of the loan -is due in one lump sum called a balloon payment. If the borrowers cannot make the balloon payment or refinance, the home is foreclosed.

Loan flipping is another deceptive practice. The company holding a homeowner's mortgage offers to refinance in order to give the homeowner extra cash, but charges high points and fees for doing so. The extra cash received may be less than the additional costs and fees charged for the refinancing; moreover, interest must be paid on the extra charges.

Home improvement scams are very common. A contractor offers to install a new roof or remodel a kitchen at a price that sounds reasonable, and offers financing through a lender he knows. Sometimes the contractor even attempts to get the homeowner to sign blank contract forms with the promise they will be filled in later when the contractor is "less busy". Often, the rates offered are not competitive, and as soon as the contractor has been paid by the lender, he has no interest in completing the job to the homeowner's satisfaction. The homeowner is left with unfinished or shoddy work and a large loan to pay off.

Credit Insurance Packing is the charging of extra fees at the closing of a mortgage. A homeowner and a lender come to an agreement on a mortgage, but at closing, the lender tacks on charges for credit insurance or other "benefits" that the borrower did not ask for and did not discuss. The lender hopes the borrower won't notice this, and just sign the loan papers with the extra charges included. If the borrower questions the last minute charges, the lender may state that the charges are standard policy for all loans, and if objections continue, the lender will claim that it will take several days to draw up a new contract, or that the bank manager may reconsider the loan altogether. Due to these last-minute pressure tactics, the loan may wind up costing considerably more than initially stated. Borrowers who agree to buy the insurance are paying extra for a product they may not want or need.

Mortgage Servicing Abuses occur after the mortgage has been closed. Borrowers get bills from mortgage companies for payments such as escrow for taxes and insurance even though the homeowner agreed beforehand with the lender to pay those items themselves. Bills arrive for late fees, even though payments were made on time. Or a message may arrive saying that the homeowner failed to maintain required property insurance and the lender is buying more costly insurance at the homeowner's expense. Other unexplained charges such as legal fees are added to the amount owing, increasing the monthly payments or the amount owing at the end of the loan term. The lender does not provide an accurate or complete account of these charges. When homeowners get tired of these tactics and ask for a payoff statement in order to refinance with another lender, they receive inaccurate or incomplete statements. The lender makes it almost impossible to determine how much has been paid and how much is still owing on the loan.

Homeowners should avoid signing over the deed to their properties to lenders under any circumstances. If a borrower is in danger of foreclosure, a second "lender" may offer to help prevent the loss of the home, if only the homeowner will sign over the property as a "temporary" measure. The promised refinancing never arrives, and the lender now owns the property. Once the lender has the deed to your property, he can treat it as his own. He may borrow against it or even sell it to someone else. The borrower no longer owns the home, and will receive no money when it is sold. The lender can treat the borrower as a tenant and the mortgage payments as rent. If the "rent" payments are late, the borrower can be evicted.

To protect against unethical lending practices, homeowners should never agree to loans beyond the means of their monthly income; sign any documents before reading the fine print; or let any lender pressure them into signing immediately. Never allow the promise of extra cash or lower monthly payments get in the way of good financial judgment. If a loan sounds too good to be true, it probably is.

Always ask specifically if credit insurance is required as a condition of the loan. If the added security of credit insurance is desired, shop around for the best rates. Keep careful records of all payments, including billing statements and canceled checks. Challenge any inaccurate charges; many companies hope that borrowers will simply not be bothered.

Hire contractors only after checking their references, and get more than one estimate for any job.
Borrowers who are financially inexperienced should consider consulting with an accountant or an attorney before signing a loan.

Invest In Real Estate - But Where?

Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio. Use the questions below to find them.

Demand Questions

1. Is the population growing fast? Check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.

2. Is job growth decent? Again, ask local authorities or use the census information. You want to see job growth equal to or exceeding population growth. The people have to have money to pay for housing.

3. Decent quality of life? This is subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It's also a good indication of a high quality-of-life if people are willing to take lower-paying jobs just to live there.

4. Wealth in the area? It is always a good sign when there is some degree of wealth in a town. Count rich homes. Wealth means everything doesn't die when the economy slows.

Supply Questions

1. How much new construction? The census figures can tell you what's happened over the last ten years. Then check with the local authorities to see if the the number of housing units they've issued permits for is more or less than the expected population growth.

2. How many homes for sale? A lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.

3. Rent and vacancy levels? Are rents high enough to justify investing? Are vacancies low? When we first came to Tucson, every building had vacancies, and we saw a man holding a sign that read, "Apartment - $250 Per Month." Great place for renters, but not a great place to invest in real estate.

4. Available land that is buildable? Less is better for future appreciation. When the land runs out, the prices start accelerating upwards.

Use these questions to compare various towns and cities, and you'll see the differences more clearly. You'll see how housing demand compares to supply in each. Finally, you'll see where it is better to invest in real estate.

How to Sell Your Home in a Slow Market

The real estate market has slowed down in many areas that were booming over the last few years. Sellers in those areas got spoiled. It was only necessary to put a sign out front, and buyers came. Homes sold in a matter of days. This is no longer happening. If you want to sell your home in a slow area, what do you do?

Go Back to Marketing Basics

Whether you are selling your home yourself or working with a realtor, the answer is the same. Go back to marketing basics. We’ll look at things you can do for yourself if you’re selling as a fsbo (for sale by owner). If you’re wording with a realtor, you need to interview to find one who will do the sorts of things we’ll talk about here.

Start with getting your home in first class shape. Then price it realistically.

Begin your marketing by putting up a “for sale” sign. About 10 percent of sales come from this source in a slow market. It’s not like the days when one put up a sign and buyers came in droves, but it is still worth doing. Lowes and Home Depot both sell inexpensive signs. Get one and install it.

Upload your property to one or more Internet multiple listing sites for fsbo properties. Choose one that encourages adding photos to listings. The more photos the better. Buyers love pictures. Make sure the site doesn’t have a bunch of listings that have already been sold. Buyers get put off by sites where every property they call about has already been sold. Find a site that gives your property its own web address.

Don’t forget lead in signs. These are signs indicating there is a house for sale with arrows on them. They can be placed at intersections to point people from a busy street through the turns necessary to get to your home. Lowes and Home Depot have these too.

Classified ads in your local newspaper are a good idea. You can include a reference to your online listing. That can give you more mileage from the pictures you uploaded.

Brochures are a good idea, too. Put a brochure box out at the front of your property, and keep some indoors for the folks who tour your home. You can probably print an adequate brochure from your Internet listing. If you’re good at it, you can make up your own magazine spread style brochure.

Brochures are useful in several ways. They make it easy for the people who just notice the sign or come in following the lead-in signs to learn more about your property. If they like what they see, they are apt to make an appointment to see your home in person. Be sure your brochure contains contact information such as your phone number and perhaps your email address.

Brochures for people who tour your property will help them remember it. People shopping for a home usually look at lots of properties. After a while they get confused about what they have seen. Your brochure with photos will help them remember your home. That’s a good thing because people are unlikely to write a contract offer on a home they can’t remember well.

Are there bulletin boards at work or your place of worship? Put up a one page flyer or copies of your brochure if you can get permission. After all, the location of your home must be reasonably convenient to those places. What about bulletin boards in the grocery store where you shop, at your dry cleaners, in the drug store you frequent?

The point is don’t do just one thing. Use your head. Put out as many marketing ambassadors for your home as you can figure out how to. The truth is people don’t really sell homes. What they do is bring them to the attention of enough people who are shopping for a home that a buyer inevitably emerges. Present your home to enough potential buyers, and it will sell even in a slow market.

Commercial real estate investment is reaping benefits for investors

‘Commercial real estate investment’ refers to the class of real estate that is primarily meant for investing money for profits later on. Examples of such properties include:
• Restaurants (including franchises)
• Retail
• Office buildings
• Self-storage (Mini-storage) / industrial
• Strip malls
• Hotels (also called "hospitality")
• Multi-family / apartment buildings
Why invest in commercial property?
Unlike residential real estate, Commercial real estate investment is evaluated, bought, and sold based purely on numbers - on a set of factors that describe what kind of return on investment you can expect with the property. Most Commercial real estate investment is expected to make a return for you on an on-going (monthly) basis. With the retail boom and increasing return on investment in the commercial real estate market, the value of commercial real estate have grown by leaps and bounds, particularly, in the commercial areas, where the local retail shops and shopping complexes have been replaced by huge and swanky malls.
What to expect?
Remember though! Commercial real estate investment is a long term opportunity, do not expect to increase you net worth over night. No one is going to profit all the time. Real estate investors have to suffer through times of little to no cash flow - it is part of the game.
This may cause panic but if you can stick with it for the long term, cash flow will increase. Investing especially in real estate is not for the weak of mind or body. It can be frustrating, and stressful. But for successful investors the rewards are priceless.