Tag Archives: property

Get ready for the turning of the tide.

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In today’s “hostile” financial climate we all need to tighten our belts and hold off on spending. The world is changing and big things await those that have patience. Now is the time to save and get ready for the big turnaround.

If you ever wanted to get into the property market the time is coming soon. As soon as the financial tide turns there will be lots of bargains up for grabs. Now I know that there are bargains out there now, but I would caution any one, that wants to be a real estate investor, from buying now. The market, and this is just my opinion, is not stable yet and we are still in for a rocky ride.

Instead of buying every “bargain” now, rather save up for when the time is right. The more cash you have in hand the better. If you have cash, you have negotiation power and you can get property at even better prices. And once you get a foot in the door, at the right time, your real estate empire will grow.

Now there are lots of ways you can start saving and one affective way is to make sure you have the best credit card deal, you will be amazed how much money you can save, and then pay off debt, if your credit card rate is good. And sooner than you know your debt will be paid off and you are financially free.

So start getting ready today and when the tide turns, you will reap the rewards

Property 2010.

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Many property owners believe that the worst is behind us and that next year can only get better. This may be a naive assumption  based only on the fact that things have already gotten so bad, people have lost everything they own, credit worthiness has been ruined and suicide rates are on the increase.

Jeez, that’s super depressing!!

Even so, having a totally pessimistic view will be detrimental in the long term as well as you may not see opportunities that come your way. While you are remembering the good times of years gone by you may ignore a lifeline that is cast in front of you.

None of us should give up, we should try and rescue ourselves until the last and not just get washed away to join the others who couldn’t hold on any more.

We should seek out assistance if we need it and not let pride dictate our future and our families futures’.There is no shame in asking for help and surviving.

So make a plan for the event that things may get worse and make sure you are still around to enjoy the Soccer World Cup and the benefits it will bring to the country.

No one knows exactly what is going to happen with property market next year and the general financial crisis but perhaps we will come out the other side better than ever. Here’s hoping!

When will the real estate market turn again?

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When will the real estate market turn again? This is the question of the moment. ABSA seems to think that starting next year the real estate market will start to recover again, let’s hold thumbs.

Well if you are still able to hold on to your property great. Lots of people are unfortunately not so lucky. There were many people who thought they could get in to real estate investing the last couple of years. As soon as they got in, the market trend and they lost everything.

So what do we have to learn from all this? If you are going to invest in property you better be ready for any market. You need an emergency fund for times when the rental won’t cover the bond. If you base your investing strategy solely on refinancing, you will struggle allot. Banks won’t let you refinance in markets like the one we are currently in, so don’t just bargain on them.

Well I hope that you are one of the lucky ones, if you are, please share your views with us and other aspiring investors.

Real estate investing tips to keep in mind.

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real-estate-investingDon’t fight your market. Listen.

When you have real estate and you plan to rent it out make sure you have an idea of the kind of tastes your target market has. The easiest way to determine this is by looking around the neighbourhood at other houses for sale. Go check out the property and get a feeling for the kind of tenant you are going to attract and what they might like.
Obviously if you intend on selling the real estate you better know what the market wants or your property will stay un-sold for long.

Research. Don’t believe everything you are told.

It is very easy in today’s world to do a bit of research before buying real estate. You can go online and have information about the current owner, the general prices in the area and what is close to the property you intend to buy. Most importantly you will know if you are being taken for a ride. A good source for real estate prices would be sites where people list their property for sale like http://www.yes2property.com/classifieds (i know this is part of Yes2Property, but you get the idea :) ).

If you have to partner up, choose your partner carefully.

If you are a new real estate investor you are probably going to have to partner up with someone to get it to the real estate market. Now it can have it’s benefits but also it pit falls. When you have to choose a partner make sure of the following:

  • You trust them. If you can not trust your partner how are you going to make investments that could run in to the millions.
  • Be the money or the management, don’t be both. Group decisions can cause havoc on real estate investment. A plan should be formulated before hand and then you step away and each partner does what he is responsible for.

Negotiate and ask the straight forward question.

Go ahead, ask the seller exactly what he/she wants out of the deal, you might be surprised. If you find that the seller’s expectations are too high you can move on and save time.

Invest safely and wisely.

When you invest you DO NOT GAMBLE. Yes there are risks but they are calculated risks. The best way to invest wisely is to not invest based on continued price increases but instead on value. The investment needs to make sense in good and bad markets, then you have value. If the price keeps increasing it is a bonus.

Cash flow is king.

Real estate investing is about the numbers. Cash flow keeps the business going. You need to make sure that ALL your expenses are covered and that you have positive cash flow. If you don’t, you better have a BIG piggy bank to pay up.

I think the main rule in real estate investing, and any other type of wealth creation tool, is the following: Plan it, monitor it and grow it. O yes and use your common sense.

DIY tip:Revive your old furniture with decoupage.

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DIY projects can be great fun. They can also be a wonderful way to revitalize your home for next to nothing. If you have old pieces of furniture at home that are in need of some TLC why not turn them into your latest project. You could re-upholster your old wing back or bring some life back into those old kitchen chairs with a decoupage technique.

Decoupage is when you decorate an item by sticking prints, posters or paper to them. It is inexpensive and fun. Here are some tips on how to decoupage a chair.

What you will need:

1.Chair or other furniture piece
2.Cleaner
3.Plain paper for template
4.Pencil
5.Art print or poster
6.Scissors
7.Glue or decoupage medium
8.Foam brushes
9.Water source
10.Sponge
11.Brayer (hand roller)
12.Polyurethane

Step 1. Start off by cleaning the chair very well, if there are any scratches,nicks or dents fill them in with an appropriate material. Then use the plain paper to trace and cut out a template of the surface you wish to decoupage.

Step 2. Use the template you have made to cut out the section of art print or poster you want to use, remember to use a good quality print. Don’t use something so thin that it will tear or crease when wet, make colour copies on thicker paper if necessary.

Step 3. Apply enough glue to the surface of the chair you are working with, don’t allow it to dry. Soak your art print or poster in water for no longer than 10 seconds. All this does is allow your paper to mould to the chair more easily.

Step 4. Position your picture carefully and stick it to the area you are busy with. Keep your hands, brayer and sponge damp as you use them to work out any excess water, glue or bubbles. Start from the centre and work your way out. Leave it to dry overnight and occasionally check for any bubbles that may form later.

Step 5. Apply about 5 coats of acrylic polyurethane with a sponge brush, more or less one coat an hour. This will seal your picture and offer it some protection from day to day use.

Before you use your newly decoupaged furniture make sure it is completely dry. Now all you need to do is enjoy your new chair and try and figure out where you are going to put it.

Poorly performing letting agents.

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Scores of property investors own real estate outside of the city or town that they live in and struggle to manage the property themselves, they therefore look for a reputable letting agency that will find them a tenant, take care of admin work and keep an eye on things. This service is of course not free and the letting agents do a get a cut of the rent every month.

But what do you do when the company you have chosen does not perform?

A friend of mine owns a property in a nice area in Johannesburg and was looking for a new letting agent and tenant. The previous two tenants had vacated the property, apparently without notice, and on both occasions the letting agency did not inform my friend that the tenants had left until three months later. In this instance my friend had landlord insurance that covered the rent for a three month period and only when this ran out did the agents start looking for a new tenant. Talk about poor service!

My friend ended his relationship with the first letting agency and soon found a new company that has a reputation for excellent service across the country. The happiness was shortlived though as the new company took almost four months to find a tenant for the well priced apartment that is close to all amenities. The agency then proceeded to allow the tenant to move in before paying the first months rent and consented to let the tenant split the deposit over a two month period.

When my friend realised that the first months rent had yet to be paid they called the agency and asked what had happened, the agent was surprised to hear of the problem and contacted the tenant who said they had already paid the money over. My friend waited a few days and still no rent so they again called the agent who again contacted the tenant. The tenant then said that they would actually only be paying the rent in that day. At this stage my friends bond was in danger of going into arrears.

The tenant did eventually pay but turned out to be another tenant from hell and was eventually evicted after a long legal process.

This long story eventually leads me to question the ability of letting agents, even the supposedly reputable ones. Do they not check a tenants references or follow up with the owner of the property as to whether or not they are satisfied and have been paid? If they perform poorly by forcing the owner to become involved should they not be held accountable?

It seems some letting agents are happy to take your money and install the first tenant that says they can pay the first months rent and deposit. They should be held accountable when they perform poorly and put an investors credit record in jeopardy by selecting a bad tenant.

You as the property owner need to protect yourself by being informed, demand monthly statements if they do not offer to provide them, and do spot checks if you feel it necessary. You are paying for a service and should get your money’s worth. Looking at the current market there doesn’t seem to be shortage of people looking for quality rental accommodation and the majority of these people will be good tenants who pay on time and observe their contractual obligations regarding giving notice and so forth.

Some agencies just appear to be lazy.

What do you think? Should letting agencies be more accountable for their apparent poor judgement?

comparables

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Comparables, also known as comparable properties, are certain properties that are similar enough to a specific property that they can be used in that property’s appraisal process. Aspects the properties have in common are compared such as size, location and proximity to amenities.

deed restriction

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The term deed restriction is used when there is a clause in a deed that limits the use of or excludes certain activities being allowed on a property. For example, prohibiting the construction of a road through the property.