Property

Renting vs. Buying a Home: Which is the Best Route for You?

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Rising rental rates and low mortgage rates are driving people down the real estate ownership road much sooner than they had originally planned. Other individuals prefer to settle back and wait until the Malaysian real estate market makes a full recovery, in spite of incentives, before they buy in. Truth be told, there is no definitive or right answer to the question on whether to lease or purchase a house.

There are several factors that you have to consider as you make a decision. Both options offer you several advantages and disadvantages, and your own financial strength is the strongest factor of them all.

Renting

In spite of the fact that you cannot build equity, renting offers you more flexibility and freedom, especially if you are doing so on a monthly basis.

Advantages:

  • You do not have to deal with maintenance issues. If a fixture in the apartment breaks or you require an electrician to pop in, getting maintenance is as easy as calling in the building’s manager.
  • Easier to move. If you are in a place in your career where you have not settled or there is a possibility that you will have to relocate to a new town in the near future, it is much easier to make the switch rather than choosing to sell.
  • No depreciating asset. Property prices stabilize, rise, or fall in the housing market. However, there is no guarantee that your apartment’s value will increase within a specific amount of time.

Disadvantages:

  • Monthly payments may increase. Renting rates are periodically on the rise, especially in larger cities. This means that you could be facing another increase in your housing payments as soon as your lease expires.
  • No equity. The payments you make monthly offer you a place to live, but do not provide you with that asset that you can finally sell when you are ready.
  • No tax benefits. According to an Asia One Business report, homeowners will continue to benefit from various government homeownership incentives, like those stated by AsiaOne Business. Tenants cannot benefit from these incentives.
  • Owner approval required for remodeling of any type. Some landlords may be kind enough to offer their tenants some leeway when it comes to painting the residence. However, you will be required to consult them regarding your choice of color. Any changes that have to do with upgrading an appliance will require putting in a request with your landlord or housing complex manager.

Buying

Purchasing is not something for everyone, but it does offer you some enticing emotional and financial advantages.

Advantages:

  • Build equity. Conventionally, apartments rise in value anywhere between 4 percent and 6 percent annually. Even in situations where it is not increasing in value, you still build equity as you make your mortgage payments as long as your property maintains value.
  • Tax breaks. Homeowners have the added advantage of gaining from Malaysian tax benefits. These deductions go a long way in offsetting the cost of acquiring your housing.
  • Stable housing payments. A fixed-rate mortgage offers you the same principal and interest payments for the duration of your loan. However, insurance and taxes may change.
  • Home as an investment. If you choose to purchase a unit and lease it out, you will be creating a steady source of income. However, this works if you can cover mortgage from your tenants’ payments. Consequently, any time you are looking for a unit, choose one that will be a profitable asset in future.
  • Settle in a community. The commitment towards purchasing a piece of property will make you more involved in your local community since you will be there for years. You get to know your neighbors, join a Residents’ Association (which offers you several advantages as explained by the National House Buyers Association) or even volunteer in local projects that improve life around the community or a local school.
  • Freedom to decorate. One of the biggest joys of this option is the freedom to change your immediate environment to suit your lifestyle. However, if you live in within a homeowners’ association, you will enjoy less freedom when it comes to redoing the exterior décor, but you can still paint the kitchen luminous yellow if you want.

Disadvantages:

  • Maintenance is on you. You will find yourself spending more time and money in keeping your residence in good condition.
  • An illiquid asset. If you experience a sudden career change, relocation or circumstances change, you cannot quickly sell your unit and get as much money as you want.
  • Pay property taxes. Taxes can easily go up, making your property less affordable.
  • Loss of value. There is no guarantee that your unit will increase in value.

Purchasing a new place to live in is a major decision that should not be made lightly. However, rising costs and low mortgage rates can make purchasing a better option. Take your time and consider all the pros and cons of each. Depending on the factors mentioned above, you will likely find that an apartment for rent in KL on PropertyGuru Malaysia may be the best financial decision you can make till you are ready to make the jump into full ownership.


3 Reasons Why You Should Be Ploughing Your Money Into Property

Right now the market in real estate is what you might call buoyant. Prices all over the world are rising – and rising fast. What’s more, there’s good reason to expect these trends to continue. Most international investors say that they’re going to continue buying real estate in 2016. And the market looks set to expand further.

Not surprisingly, many people are becoming interested in the real estate market. After all, prices are surging in a number of cities. This post, therefore, details all the reasons why you might want to put some of your money into real estate this year.

City Populations Are Increasing

Right now, millions of people are moving from rural areas in the developing world to urban areas. This means that the global population of people living in cities is expected to rise by a billion over the next ten years or so.

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What does this mean for real estate? Well, for one, it means that there will be more pressure on existing housing. In some places, the price of housing will increase much faster than inflation. We can already see this happening in Shanghai, for example. Thousands of Chinese migrant workers find their way to the city each year. And when they arrive, they need housing and places to go to work. This pushes up the prices of fixed housing stock in these places, often faster than new houses can be built.

Global Cities Are Becoming Global Markets

We’re also in the midst of another phenomenon: the global city. The term has been bandied about for decades. But it’s only in the last few years that we’ve really seen genuine evidence for it.

For instance, new apartments in global cities, like Melbourne are selling for more than 13 percent more than they did a year ago. And it’s all being driven by the fact that businesses no longer approach the market on a country-by-country basis. Instead, they see it as one giant market, and then just ask themselves where the greatest talent lies.

In cities, like Melbourne, there’s a lot of talent. So businesses from all over the world are relocating to the city. And this is driving a self-reinforcing process. The more talented people are attracted to the city, the more the city attracts new businesses. New businesses, in turn, attract new people to the city and so on. The effect is that real estate prices are being driven ever higher. And for good reason.

Low Global Interest Rates

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We’re in the midst of something of a capital glut right now. Central banks all over the world are doing everything they can to keep interest rates low. While the wisdom of this policy is questionable, it’s doing a lot to boost real estate prices. Credit is cheap. And as a result, real estate investment is attractive. Cheap credit is boosting real estate prices around the world.

Will low rates continue? Almost certainly. Most governments and consumers around the world are so indebted right now that any interest rate rise would be devastating. It might sound bad, but this is bullish for real estate.


Want To Buy A House? Here’s All You Need To Know

The reason you’ve clicked on this article is because you’re looking for house buying advice. Purchasing a home is probably going to be the largest financial transaction of your life. A lot of people go into it thinking they’ll know what to do. It will be a breeze; there’s nothing to worry about, right?

Unfortunately, this line of thinking is incorrect. Buying your first house can be a very difficult and tricky process. There’s a lot more to it than you think. And, this is why I’ve decided to put this guide together. I aim to help everyone understand the process of buying their first property. We’ll go through some of the important decisions you have to make, and I’ll include tips along the way.

To set things in motion, I’ll start with the main thing on everyone’s mind; money.

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(Pic via: https://goo.gl/TjhS8t)

Financing Your House

It’s no secret that you’ll have to spend a lot of money on a house. They can cost hundreds of thousands of dollars, with some creeping into the millions. Naturally, this presents you with an immediate conundrum; how will you finance your house?

There are two main answers to this question. Firstly, you could pay for it using your savings and money that you’ve earned. If you’ve saved up all your life or are in a well-paid line of work, then you might be able to afford it. The benefit of doing this is that you are the full owner of your home from the get go. However, it’s something I recommend for people that are capable of surviving after they’ve paid for their house. You’ll find that this isn’t the case for most first-time buyers.

So, instead of using your own money, you can opt for a different route. The majority of people will apply for a home loan, aka a mortgage when buying their first property. This is a large loan, approved by a bank, and secured with your property. What does this mean? It means that your new house is used as collateral to ensure you pay the loan back. Failure to make repayments will result in the bank seizing your home, and you being kicked out. The obvious benefit of a loan is that it enables people to afford their first house. All you need to do is put down a deposit, which is a small fraction of the total house price. Financially, you won’t suffer, and mortgage repayments tend to be manageable. Of course, not everyone gets approved for a home loan. Sometimes, banks might reject your application. As seen here https://smbia.com.au you can find mortgage brokers to give you advice with your application. This makes sense if you’ve never applied for a mortgage before, and want to get approved. Once approved, you can buy your home and start thinking about your future

At this point, a lot of people might wonder whether buying a house is the right idea. Some people might be tempted to rent a home instead. However, I think it’s a better financial decision to buy a home because you’re paying for something you’ll own. Even if you get a mortgage, eventually you’ll own the house when you’ve paid it back. With renting, you’re essentially spending money on something that will never be yours. At least when you buy a house, you can sell it as well. There are sites like http://www.totallymoney.com/ that go through buying vs. renting in full detail.

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(Flickr: https://flic.kr/p/7LhseC)

Planning Your Move

The financial aspect of buying a house is going to be the biggest decision and require the most thought. But, planning your move will be the second thing on your mind. It’s crucial that you’ve thought everything through and got a complete plan of how things will go down. Otherwise, you’ll find it very difficult to buy a house.

For starters, you need to plan where you want to move. Are you staying in the same area, or do you want a complete change of location? Obviously, this is going to have an impact on what houses you’ll be buying. If you’re moving locations, then you can ignore any houses in your surrounding area. Another thing you need to plan is when you intend on moving house. That’s right; you can’t decide to move randomly. It has to be thought out well in advance. Why? Because this gives you the time to find a house and perhaps save some extra cash too. If you woke up one day and decided to buy a house, then you’re going to run into all sorts of problems.

Rushing the house buying process will result in you making a terrible financial decision. You could end up buying a house for too much because you’re rushing and not thinking things through. Or, you might end up paying for a house, without doing any additional checks. As a consequence, you could buy a pile of junk and need to spend loads to fix it up. To make the best financial decision possible, give yourself a lot of time to plan everything and think things through.

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(pixabay: https://goo.gl/Hrndr8)

Buy Less Than You Can Afford

My final piece of advice revolves around how much you should pay for a house. Naturally, people are going to be different here. It all depends on your monthly income, savings, etc. Typically, when applying for a mortgage, you’ll be given a figure deemed enough for you. The lender is basically saying that’s as much as they believe you can afford to spend on a house. There are even sites like http://www.bankrate.com/ with tools to help you work this out. The idea is that you’re given a figure, and that’s the maximum you can afford to pay.

After learning this, many people look for houses that are priced at that figure. However, this is not the way for you to do things. You should take the amount you can afford to pay, and look for cheaper homes. But less than you can afford, and it should help you stay in a good financial place. Too many people spend loads on a house and live poorly because of mortgage repayments and everything else.

And there you have it; this is all you need to know about buying your first house. Hopefully, this has been useful and you’re now ready to begin looking for homes.


Relocation to Dallas Made Easier

homeRelocating can be both a dream and a nightmare. Coming into a new community can mean a brand new start and a new life for many people. However, coming into a new community can mean not knowing where to live, where to work, or where to play. Without close friends and family nearby, it can be even more confusing. But, relocation is a bit easier when you have a good real estate professional at your side.

Real estate professionals have the community knowledge to steer you towards a residence that will make you and your family happy for many years to come. They know where the best schools are located and what kind of commute times is common between certain points. This makes narrowing down new home choices a bit easier. They can give you the knowledge of your new community to make home buying or leasing easier.

Most people relocate to a new city for a job offer or for the potential of a new career. They may be leaving good and bad memories in their old home. But, the new home can represent a fresh start after a major change in life. Those who are graduating college may have received a job offer in the Dallas/Fort Worth area. Others may be coming off a divorce or the breakup of a long-term relationship and need to make a new start in a new location. There are dozens of other reasons for moving, but all of them represent a major change in life and location.

Are you single and moving on your own? For you, the options are quite diverse. If you want to work and live within a short distance, you might consider residential units in the downtown or Uptown areas of Dallas. These areas are becoming easy living for urban dwellers with top businesses just steps away from luxury condos. Restaurants, shops, and other amenities are just steps away from both the job and the home. These areas promote walking and biking back and forth for most activities. There are both luxury and affordable living options in both areas. These are very popular areas for young professionals as well as the arts communities.

Do you have a young family? Then finding a home with a good school district is likely your priority. Dallas/Fort Worth has many cities with good school districts such as, Highland Park and University Park. You may find a gated community on the outskirts which is a good option. Most of these communities are within a short drive of major commuting routes. You might find one of the historic neighborhoods a good place to balance family and business needs. The homes available on the market are diverse and will give you plenty of choice.

For others moving into the DFW area, the housing options are wide open. There are many communities within a short distance of downtown. There are many communities also tucked into rural enclaves with plenty of land around them. The real estate opportunities in Dallas – Fort Worth are deep and wide, so you will find something to fit your family, budget, and lifestyle. If you are unsure how to proceed, you may want to stay a few months in a rental while trying to find your ideal family home.

Omni Chaparala works for DFW Realties, a DFW real estate company serving home buyers and sellers in the Dallas – Fort Worth metroplex.


7 Free Ways To Burglar Proof Your Home

Keeping your home safe from burglars doesn’t always require expensive products and time consuming tasks. The following 7 simple tips will help burglar proof your home and keep you, your family and your items safe from the hands of criminals without breaking your budget.

  1. Keep at least one light on
    Keeping one light on that can be seen from the outside gives the illusion that someone is home and awake, which can deter burglars from entering your home. Furthermore, consider using curtains or blinds to block the view inside your home. Burglars like to “case” the house to make sure the items in the home are worth the risk. If they don’t know what you have in your home, they are more than likely to move on to a more vulnerable house.
  2. Place a beware of dog sign in your yard even if you don’t have a pooch
    Most criminals would rather get in and out of homes without dealing with a protective dog. Simply placing one of these inexpensive signs in your yard can help keep burglars at bay.
  3. Refrain from leaving a spare house key outside
    Even if you think the key is well-hidden, most experience criminals know where to look for spare keys. They know all the tricks such as hiding the key under a mat or potted plant, and they even look for the fake rocks designed to hide keys in. Instead, ask a trusted neighbor or friend to keep a spare key at their house.
  4. Keep your yard tidy and neat
    Burglars often look for houses that are hidden by overgrown trees and bushes, which help hide their sneaky actions from the eyes of neighbors and passerbyers. Keeping your bushes no higher than 3 feet and tree limbs pruned to no lower than 6 feet will help deter burglars. For those without pets and small children, consider planting short yet thorny bushes around the foundation of your home for extra protection.
  5. Always lock doors and windows
    Many times robbers will strike when you forget to lock your doors and windows. This simple step is easy to overlook especially if you are just making a quick run to the grocery store or forget to shut a cracked window before bed. Even if you feel completely safe in your neighbor, you should still always lock all doors and windows. Criminals are looking for a quick, easy target where they can get in and out in a matter of minutes. Merely locking up every time you leave or go to bed can help prevent you from becoming a victim of theft.images
  6. Remove your name from your mailbox
    Some criminals will use the name on your mailbox to locate your phone number. From there, they will call your house to see whether you are home or not. Furthermore, avoid placing boxes for high-end items — such as expensive televisions or computers — outside for the garbage men to pick up. Experienced criminals look for signs like this, which inform them that you have recently purchased new and expensive items just waiting for the picking.
  7. Consider installing an alarm system
    Alarm systems provide complete protection against burglars and are available in a wide array of price ranges. Simple do-it-yourself alarm systems can be purchased at department stores and home improvement centers, while higher end systems with all the bells and whistles can be professionally installed by security companies.

Angel Pena writes for Home Security Concepts, a home security alarm company based in Florida.


Real Estate – Choosing Properties for Your Self Directed IRA

The self directed IRA offers a number of distinct tax advantages to holders. It’s an ideal method of entering the property market. You need to beware of what you can and can’t do, though. That list of prohibited transactions will soon become your best friend.
We go through how you can find a property to add to your portfolio in this article.

The Property Market

Unlike precious metals, the real estate market fluctuates radically. We’re gradually starting to leave the remnants of the massive housing bubble burst of 2008. Now is the time to start looking into using a self directed real estate IRA to enter the market and take advantage of rising housing prices.

Demand will always be high and supply will always be there. It’s just a matter of waiting for the prices to rise again, and this is happening. Whether you buy to rent or build something yourself, there’s money to be made.2  

The Mortgage Issue

2To get started, you need to understand the type of mortgages available for Self Directed IRA.  A Self Directed IRA can only get a non-recourse loan.  A non-recourse loan is one where the bank only holds the property as collateral.  The IRA holder does not sign a personal guarantee in behalf of the IRA account.

There are options where you can partner with your IRA and you assume the loan but you have to be very careful that you structure it properly.

Building a Home

This is where it really gets complicated. Don’t waste your time with this option if you don’t have a significant amount of money. You can’t use so-called sweat equity or the favors of friends and family to get the job done. This would be a breach of the account terms and conditions.

You’ll have to pay for everything to get your house built. And this will nearly always be more than simply buying a home that’s already built.

What Can You Charge?

Let’s assume you intend on renting your investment home out to people. Before you purchase anything, find out about the going rates in that area. You need to determine how much you can realistically charge before you can predict how long it will take you to start making a profit.

The same thing applies to homes you intend on simply selling to someone else. Get an idea for pricing trends in the local area. If they’re on the up, it might be a good idea to purchase the home. If prices are fluctuating, and there are economic problems, stay away from it.

Many Small or One Big?

The debate over whether yourself directed IRA should contain lots of small properties or a single large property has many convincing arguments. In general, you should treat your investments as you would the stock market.

Diversify your market portfolio. One big property is always a risk because there’s no defense if the price crashes or it’s affected by some sort of natural disaster.

Yes, having more properties might mean more time spent managing them, but you can outsource this work. There’s nothing with contracting all the maintenance work out to a management company. As long as the company isn’t related to any branch of your family, there’s nothing stopping you from doing this.

Check with Your Custodian

Whenever you make a purchase or make a transaction of any kind, talk to your custodian. They’ll be able to check if you’re remaining within the rules. Get into the habit of doing this and you’ll never have to deal with the wrath of the IRS.


Why is Now the Time to Invest in Property?

Are you looking for a get rich quick scheme? Then sadly property investment isn’t for you. However it may be,if you aren’t afraid of a little hard work, and are looking for a long term investment.

In the past, investing in bricks and mortar was seen as a safe investment- prices could only go up.But when the recession hit,property prices fell drastically leaving many out of pocket. As the economy recovers, why is now the time to invest in property?

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Property prices are on the rise again according to a study by Halifax bank. House prices are rising by 6.9% annually and the total number of sales has risen to 172,000. The future looks bright for investment property buyers.

Estate agents, Savills, has gone as far as suggesting that over the next five years, property prices will rise 25%, but are we aiming for another property boom and bust?

Property buying signs are positive. Sellers are achieving high percentages of their asking prices and with the government’s new Help to Buy scheme, more first time buyers are getting in on the property market action. However, prices in Wales have dropped by 1.7% and prices have not quite reached the record highs of 2007. We’re not in for another boom. Well not for a while at least.

Help to Buy scheme

Unless you’ve been living under a rock for the past few months then you have probably heard about the governments new Help to Buy scheme. These Help to Buyequity loans give mortgage guarantees enabling successful applicants to buy a home worth up to £600,000 with only a 5% deposit. The government will guarantee 15% of the mortgage.

This property scheme aims at getting young first time buyers into the property market which they previously would not have been able to afford. If successful, an applicant will not have to pay loan fees for 5 years but on the 6th year there is a charge of 1.75% of the loan’s value and this fee will increase every year. These fees do not count towards paying back the equity loan.

To apply for a Help to Buy equity loan you must contact a Help to Buy agent in your local area and buy a property from a registered Help to Buy builder.

Commercial property

Is now the time to invest in commercial property? Well, the answer is complicated – yes and no.  This depends on the type of commercial property.

It’s no secret that high streets have been struggling recently, and, as a result, properties are cheap to pick up. This may sound like good news from an investment point of view however this downturn also means you cannot ask for high rental fees and your profits will be minimal.

Small industrial units however are doing well. These are highly sought after and create good returns so if you’re going to invest in commercial property these are a relatively safe bet right now.

Offices are not the best investment at the moment unless you are going to use them yourself. Offices come in large lots or on business parks and require a lot of cash to buy in a rather flat market. However if you are looking for business needs then there is an abundance of office space in most cities at the moment.

If you are looking to do something different with your business finance or you’re seeking new investment opportunities, then the best time to buy commercial property would have been in the credit crunch as prime locations opened up. However, as the economy recovers there are plenty of bargains still to be had.

So do you think this is the time to invest in property? We do. It’s time to get in on the action now before prices sky rocket once more.

Bio:

Pure Commercial Finance makes your business irresistible to lenders by creating the perfect package to apply for finance; they are independent commercial finance brokers who pride themselves on their reputation for giving excellent service to their clients.

 

 


What to Consider When Buying a UK Holiday Home

Investing in propertyBuying a UK holiday home for letting purposes is very much something that needs to be done as much with the head as with the heart. For example, a property may strike you as being lovely and somewhere you would wish to spend your holidays but would it necessarily seem so to others? Of course, you cannot please all of the people all of the time but there are a few general points to think about before you start identifying target properties and thinking about holiday home mortgages.

Location
One of the few things that people won’t debate is that this continues to be the single most important aspect when selecting a holiday let property. Almost any property which has a pleasant view whether it be coastal, river, countryside or even over a pretty village, is going to be desirable to significant numbers of people. Those properties which simply look out over onto a road or a property directly adjacent, are likely to be less appealing to many as holiday accommodation.

Privacy

Whatever might be the case in Mediterranean high-density holiday locations, in the United Kingdom, most people wish to have a degree of privacy. So, properties which are overlooked or have gardens that are overlooked may prove to be something of a turn-off to many.

Surroundings

With today’s internet facilities and the ability to look down directly on to a location by satellite, properties that have a great view one side but which are only 200 yards from a cement factory on the other side are going to be spotted and rejected. So, think carefully about the wider surroundings – not just an immediate picturesque view.

Facilities
Many people, once past a certain age, don’t particularly enjoy the prospect of needing to rough it on holiday. So, properties that have good bathroom, dining and kitchen facilities may be much appreciated. That also goes for things like a washing machine and dryer.

Elderly and infirm
Things such as spiral and open staircases and may look great on an architect’s drawing board but they may prove to be exceptionally difficult for elderly or slightly infirm people. Given the aging population and the need to think broadly in terms of your target market place, it might be sensible to favour practicality over design ascetics.

Access and car parking
That cute village-centre coastal property may look idyllic but it might not be particularly attractive to families and older visitors if the nearest car parking is half a mile away. Keep in mind that even on holiday, people may need to shop and engage in other occasional similarly mundane activities.  That won’t be much fun if the weather has turned against them and they can’t park their car anywhere near the property concerned. It can also be an issue in terms of initially dropping off suitcases and baggage etc.

Match the property with your target marketplace
Larger multi-bedroomed properties may be very attractive to families but they might be rather less interested in locations that are isolated inland and a long way from anywhere else. Young children can only sit and appreciate views for so long. That type of location might suit couples looking for a romantic getaway but then they will probably be looking for smaller and more intimate properties.

Garden areas
Many British people are hopeless optimists and they look forward every summer to the chance of having some barbecues and al fresco dining. Even if in reality these opportunities are not easy to come by, nevertheless, remember you are selling the dream. So having a reasonable garden with somewhere that you can put some furniture and a barbecue might be essential in appealing to significant numbers of potential customers.


Moving to a New Apartment

Moving to a new apartment is always stressful. It’s best to just accept that the process is going to stress you out and do what you can to make the transition as smooth as possible. Here are some tips to help you with that:

1. Pare Down

Moving to a new propertyEven if you are moving to an apartment of comparable size to where you’re living now, it’s best to pare down your belongings. Go through everything. If it’s broken, toss it out. If you haven’t used it or even touched it in the last twelve months, get rid of it. If you own four of the same thing, keep the one that is in the best condition and get rid of the rest.

Paring down helps you save space in the new place. It also makes moving day a lot easier to deal with. The fewer things you have to pack up, move and unpack, the better for everybody’s stress level.

Hint: Sell the things you’re getting rid of in a yard sale to earn extra money to help finance your move. Donate whatever doesn’t sell (if you donate to a charity, the donation can be written off on your taxes).

2. Store Stuff Off Site

Renting local storage can help make the transition from one space to another much simpler. A storage space is a great place to put the things that you know you aren’t going to use every day but that you want to keep. Holiday decorations, luggage, off season clothing, files, etc—they can all be kept in a storage unit (preferably one with climate control).

Storage units also make it easier for you to move into a smaller (and therefore cheaper) space than you are currently occupying.

3. Get Your Utilities Set Up Ahead of Time

You want to give at least a week’s advance notice to your electric company and gas company that you will be moving in and will need the power to be turned on. You might need to give at least two weeks’ notice to your cable/internet provider.

Make sure you check with your apartment manager before you do this. The complex/building might have a specific provider that they require all residents to use.

4. Get a Post Office Box

One of the realities of apartment living is just how nomadic it can be. If you’ve got a short lease or are only living in an apartment while you hunt for a house, getting a Post Office Box can be a lifesaver. You can have your mail forwarded there and then, no matter where you live within that city; you can keep the same address. It saves quite a lot of hassle.

5. Pack for Weight Not Space

Remember that your boxes are going to be moved by humans—possibly you and a few friends. Make them easy to carry. You can always make extra trips. You cannot always get your arms or back replaced.

Moving is never fun. Even if you’re looking forward to the new space, the process of getting there is going to stress you out. Using these tips can help alleviate a little bit of that.


10 Tips for Buying an Investment Property

Property investment can be a really fun thing to do if you do it right. Try being resourceful, look for tips and tricks, look the facts up and make confident and educated decisions. Here are some of the best tips considering the acquirement of an investment property.

Location

This is always a huge deal. It’s even more important than the quality of the very building, and it comes very logical when you think of it. You can easily repair a damaged and old house, but a street’s or neighborhood’s reputation is next to impossible to correct. So even if it looks weird at first glance, take special care about the location of the property you are buying. A good street is certainly going to attract good tenants, and also, there is less chance of being seriously affected by property slumps.

Do not over-renovate

Although a fountain in the back yard or a nice gazebo next to it sound and look really nice, these expensive extras can really tighten your budget, and that is the money which you cannot and, most probably, will not ever get back. Go for a simple neutral colored paint, maybe some new carpets or drapes, and keep your renovation fees to a minimum, but still adding a certain amount of the ‘wow’ effect to your new acquisition. For example, try to avoid buying a complete new set of furniture for the bedroom if you can do with just re-painting the old bed and dressers, and maybe changing the handles on the dressers.

Avoid Flipping

To move away from risk, and knowing the today’s market, aim to buy and hold onto your property. 5 years is a nice period of time to do so. This minimizes the risk, and maximizes the return. If you start with buying and selling constantly, you will not only lose money on the very trades, but also lose a huge amount of time (which equals money, right?) moving your stuff from place to place, when you sell them.

Aim for the long term

Long term investments are less risky, and they require way less effort. They can make a nice addition to your current income, and they present a great option for small investors. Also, having time on your hands to lay low during the market lows can protect you from severe losses.

Have cash available

Aside from renovations, there is always need for some additional cash, for example, most lenders will require a 20% deposit on a property. So, a kind of emergency fund for such occasions is a plus to have, if not even a necessity.

Calculate the real cost of ownership

This involves everything from the very price, to mortgage rates, utilities, maintenance, repairs and any other emergency that may pop up while you own and manage a property. The only way to keep things in check is to keep track of every single dollar spent on the property so that you can accurately circle out the final cost of everything that needed to be done.

See the property for what it CAN be

Judging the property by its current state is a common mistake made by new, “green” investors. If you use just a tiny bit of imagination you can do all the renovations and adaptations in your head and imagine what can come out of this ragged old shack you are looking at. Just be careful with the extent of renovations planned, they can mess with your profit.

Hire quality workers

With the rise of the countries in transition, like Eastern Europe, of parts of Africa, comes the serious affordability of actually well-trained workers, who are dying to work abroad. Of course, finding out what stuff you can do yourself, but leave the tricky things to the professionals.

Know your rights as a landlord

Learn everything you need to know about your legal rights and obligations as a landlord. Not knowing these may prove costly in the future.

Enjoy the benefits of your investment

After all of the renovations and consultancies, it is now time to enjoy your investment. Having regular tenants gives you a stable monthly income and, also, a sense of security a human being needs to feel happy. In the end, learn from every investment you make, and soon you’ll be a property investment mogul. Well, maybe not, but you’ll surely enjoy a life with regular monthly income, almost without lifting a finger.

Featured images:
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Damian Wolf has been a blogger and an online marketing pro since 2009. Currently, he works on http://www.simplehomeinvest.com.au project. Damian loves to meet new people and discover efficient ways to achieve business goals of business clients.


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