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Monthly Archives: August 2017

All about Investment Properties for Beginners

• Know the range of options for real estate investment-you can invest in buying commercial properties, residential houses, apartments, condos, or land so you need to study which would be a better investment for you. There are many options so you will need to do your research to see which one will align with your future plans and stay within your budget.

• Why investing-are you investing to buy to sell again for a profit or do you want to rent the investment property? If your investment properties are residential you can create a regular income by invent in rental properties. You can also be a “house flipper,” which is where you buy an older home, renovate them, and sell them for a profit. If you decide to invest in commercial property you can hold it until the prices go up and then sell it to make a good profit.

• Location-when buying an investment property remember it is all about the location. The price of the property is largely a function of where it is located. Where the property is helps to decide the price range. Make sure that you research the price trends according to different locations before you buy investment properties.

• Network with a real estate agent-they can make your job a lot easier finding the type of property you want to buy. When you network with real estate agents they can help point you toward investment properties that fit your plans. A real estate broker will handle the legal work that is involved with the sale and purchase of the property for you. They can also make an offer and negotiate for you.

Considering Waterfront Home Investment

Make Sure The Property Is Structurally Sound

You may find the most perfect property for you when you are on your search, but if it isn’t able to withstand the weather conditions then it is not going to be a suitable purchase. Always remember that being on the waterfront means the house is more exposed to the element and may have to stand up against some pretty torrid conditions at times.

Before you commit to anything, make sure that you have an expert come in to take a look at the property. Ensure that they pay particular attention to its structural integrity and consider any weak points they highlight before you decided what you want to do.

Talk to Neighbours

Speaking to the people who already live in the area can give you the inside scoop about what sort of issues you might end up facing if you choose to make the investment. Be polite and courteous and you should be able to get honest answers from people who have first-hand experience.

This can prove to be invaluable when making your decision about whether or not to invest in the area, plus it also acts as a way to gauge the neighbourhood and whether or not the people there are people you will be happy to be around.

Look Into Utilities

Utilities are often an issue with waterfront properties, especially those that are in more rural areas. It can often be difficult to get electricity and running water to homes that are a little out of the way, which is something that you are going to need to account for.

Talking to the neighbours will again help in this regard, but be sure to discuss any concerns with the local utilities companies. If you don’t like what they tell you, then it might be time to start considering other options instead.

Popularity of Serviced Apartment

In recent years, the serviced apartment – a subsector of the hospitality industry – has grown more than any other temporary accommodation class in Europe. This can in part be attributed to globalisation and the needs for workers to travel more frequently to offices located out of town, and companies looking for less expensive ways to accommodate them. Also, families may have a preference to stay together and require a different set up to what hotels offer, in terms of wanting to keep an elderly relative close, having an office space to catch up on work tasks, or to allow older children more privacy.

The evidence of their popularity lies in occupancy rates. Serviced apartments in the UK averaged an 81% occupancy rate in 2016, and outperformed hotel rooms which stood at 77.2%. Amongst businesses, their usage is also increasing. According to a recent survey carried out by the Business Travel Show in November 2016, four in ten corporate buyers have reported that they would have used serviced apartments more by the end of 2016 than they did in 2015.

As we have mentioned above, serviced apartments are outperforming hotel rooms in terms of occupancy rates. Due to their cost-effective nature, they are becoming popular with companies sending employees on business trips, and those travelling for leisure who require more flexibility in their accommodation than what a hotel can offer.

Serviced apartment companies are relishing their success and are subsequently expanding at a fast pace. SACO are currently one of the largest operators of serviced apartments and over the past few years have made several acquisitions. Since the start of the year SACO have secured additional developments in London, Cambridge and Dublin, and a fourth is in the pipeline in Manchester. This demonstrates a confidence in the market, and indeed, a 2016/17 report by Savills predicted that 2017 would be “record growth” in terms of new developments in the UK.
The distinction between serviced apartments and Airbnb.

Governments have been cracking down on Airbnb rentals, which in part allows for success in the serviced apartment market. Berlin has banned tourists from renting entire flats from Airbnb to protect affordable housing, and Airbnb are banned from listing short term rentals in New York. Serviced apartments differ in that they are not flats owned by individuals looking to achieve a supplementary income, but rather they are owned by a company with the sole purpose of renting them out on either a short-term or long-term basis to individuals who need somewhere to stay. Unlike Airbnb, the apartments are not someone else’s permanent residence.

The crackdown of Airbnb rentals in some locations is allowing serviced apartments the opportunity to accommodate those who would have used Airbnb, further boosting demand for the units.
Serviced apartments as an investment

Shop For a Mortgage

Ask your friends and family for referrals when shopping for a mortgage. Create a list of lenders that your trusted colleagues recommend. When comparing mortgage loan offers, make sure you compare apples to apples. Compare similar rates, terms, and costs. Make sure you ask for a loan estimate, which should include all costs associated with obtaining the mortgage. If the lender just emails you the interest rate and estimated monthly payment, you will not have enough information to effectively compare mortgage options and costs from each lender. Interest rates will vary from lender to lender, make sure you ask what the costs would be if they all offered the same interest rate. Also, some lenders may offer no fee loans, where the lender covers the costs of obtaining the mortgage; keep in mind that this loan type is usually associated with a higher interest rate.

A home loan involves numerous fees from a variety of sources. Most lenders charge fees for similar services, but call them by different names. If you are unsure of the reason for the fee, talk to the lender so you can get a better understanding of why it is being charged and if the other lenders you are considering for your mortgage are charging a similar fee. Keep in mind that some lenders may also charge just a few larger fees and lump many services into it.