1. Bra$zil

The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world’s fastest-growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 Football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.

Property investors worldwide are flocking to Brazilian shores to snap up real estate in anticipation of future capital growth. Unique Press. One local expert projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country’s burgeoning economy and the pending introduction of mortgages to overseas nationals.

Goldman Sachs believes that Brazil’s economic growth could outstrip that of the other BRIC (Brazil, Russia, India, and China) member nations over the next few years. Brazil’s economy is widely expected to become the fifth-largest in the world by the time the Olympic Games kicked off in 2016, and yet Brazil’s property and land prices remain a fraction of those found in more developed nations.

The Brazilian president, Luiz Inacio Lula da Silva, has already pledged to spend up to £11.5 billion on building a million new homes in Brazil between now and 2011. However, potential high property investment rewards are not without risks, as crime and corruption remain widespread in Brazil.

2. France

In stark contrast to the relatively high-risk, high-return nature of investing in Brazil, the risks associated with investing in French property are far lower. France has traditionally always been a rather haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting that the global credit crunch had much less impact than other European counterparts.

France’s strong economy has positively impacted its property market, which now appears to be on the road to recovery. Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009.

Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further due to France’s prudent attitude to mortgage lending. Anyone taking out a mortgage in France is usually only permitted to borrow one-third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates.

Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports a 21% rise in mortgage inquiries in Q3 2009 compared with the previous quarter. The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors due to improved yields across the country. The capital city of Paris has long been identified as one of the most attractive European cities for investment. It is typically the most popular place to buy a home in France, along with Cannes, Marseille, and Nice, all located along the southern Mediterranean coast.

3. the USA

The USA property market may be showing tentative improvement following one of the worst economic and property crashes in living memory. Still, the downturn has come at a cost to many US homeowners.

Data from RealtyTrac shows that a record high of 938,000 US homes foreclosed in the third quarter of 2009. If this trend continues, foreclosures will reach around 3.5m by the end of 2009, up from about 2.3m properties last year.

Properties in Nevada had the highest foreclosure rates in Q3, followed by homes in Arizona, California, Florida, Idaho, Utah, Georgia, Michigan, Colorado, and Illinois.
Rising unemployment levels – currently at a 26-year high of 9.8% – were cited as the main reason for the increase in foreclosure levels. Yet, there may be worse, as the unemployment rate is not expected to peak until mid-2010.

Unfortunately, one person’s misfortune is another’s gain. With around 7m properties currently in the foreclosure process, compared with 1.3m for the same period in 2005, predatory investors are buying up distressed, abandoned, and repossessed homes at bargain-basement prices, as now appears to be the ideal time to fill your boots. Although the subprime mortgage crisis started in the USA, there are growing signs that the property market may now be at or near the bottom of the cyclical downturn. Various indices reveal that average residential prices started to rise, albeit marginally, during the second quarter of 2009.

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1.) What’s Your Type?

There are many different types of commercial properties that you can purchase, including:

• Office
• Retail Space
• Warehouse Facility
• Restaurant
• Commercial Condo
• Strip Mall

The first step is clearly defining the property type you want to purchase and how to use it. The following information will help you maximize your investment dollars to get the best possible deal when purchasing your property.

2. Build Equity With Your Investment

Equity is Money

Building equity is the primary, if not the ultimate, reason to buy instead of rent a commercial property. Let’s face it. It’s money in the bank, and it’s better than money in the bank because you can’t get the same kind of return on your money when it’s sitting in the bank instead of building equity. Moreover, suppose you choose the right financing for your commercial real estate purchase. In that case, you can not only build equity through ownership, but you can also leverage your capital savings to grow your business, hire additional employees, or even purchase a different location when the time comes.

Owning beats renting because you can sell your investment once you outgrow the space or sell the business. Even if the commercial property in your area has not been appreciated (which is unlikely), you can recoup your investment by renting out the space once you move out and by selling when the time is right.

If you plan on growing into your building, buy something more significant than your current needs and rent out the extra space until you need it for expansion. This will provide you with a steady income that you can use to help pay your mortgage or invest in your business.

3. Calculate Your Savings And Your Potential Profit

Lower Monthly Payments

Consider buying commercial real estate as saving for your business. Real estate costs are the third largest business expense, behind payroll and taxes. Extended loan amortizations mean that your monthly payments could be less than what you would pay for rent since landlords usually charge more than their monthly loan payment. In other words, owning your commercial property may be more affordable, depending on current market conditions.

Ask your lender to provide you with an analysis of the current market in your area so that you can see which scenario is best for you (renting or buying). The lender should explain your options in detail with examples of monthly rental costs vs. monthly loan payments and the benefits of each.

Analyze the Rent Value

Upon finding a property that piques your interest, find out the status of the current tenants (if it is a multi-tenant property) in terms of how much rent they are paying. Check the current market to see if the rents are undervalued, meaning below what you can get in the current market. Your realtor or lender should be able to help you figure out how much you could charge for rent and determine how much of a profit you can make each month.

Tax Advantages

There are many tax advantages to becoming an owner of a commercial property. In most cases, you can deduct part of the value of the building at tax time, as well as improvements you’ve made as depreciation, which can save you more money on your taxes. Buying the property under your business or corporation’s name is a better tax strategy than under your name.

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The article refers to purchasing property at auction, the essential planning, and the steps required to complete a successful property acquisition. Although the general property market faces testing times, auctions are where deals can and are being done.

These circumstances have led to rapidly shifting criteria by lenders, with funding lines that were previously available either being withdrawn or altered beyond recognition; therefore, how can I assist you in raising finance? I manage a regional finance business with access to a panel of over 100 lenders, from high-street banks and institutional investors to merchant and private banks, wealthy private individuals, groups, and venture capitalists.

Whether you are a seasoned property investor or a novice, no disputing property auctions are where extraordinary bargains will be had for those with a keen eye for a deal. But how do you obtain finance in a market where LTV ratios are falling without employing substantial amounts of your money?

So why use an auction? There are many reasons people consider buying or selling at auction; they may want to move quickly, they may be looking for a plot of land for development, the property may involve repossession, or they want a quick purchase without the risk of gazumping. Also, many buy to let investors consider auctions because of the variety of properties on display at any

one time, and by nature, there is a good place to bag a bargain. With repossessed properties, the lender who has taken ownership of the property owes a burden of care, “an equity of redemption,” to the client to whom they initially lent monies. This means, in practice, that a lender who repossesses will generally offer these types of properties in an auction, so they remain places where undervalued properties can be acquired.

Buying or selling properties at auction can have several advantages for both the buyer and seller. Most of the delays associated with property transactions are eliminated, the auction and completion dates are fixed, and the sale contract becomes binding upon the fall of the gavel Vinzite. The following tips section of this article will focus on the property transaction primarily from the buyer’s perspective, emphasizing the lenders that operate in this market.

Tips

Inspect the property and do as much research as possible about the property and the neighborhood. There are house price sites to determine how much similar properties have sold for. Ensure you read all written material provided by the Auctioneer, the Legal Pack, and the HIP. It is important to fully understand the contents and the terms and conditions of the auction.

Ensure sufficient funds are available for the deposit, which will need to be paid at the auction, i.e., often 10% of the sale price, but you should check what the deposit will be before the auction. Also, check which payment methods are acceptable (as some methods of payment may not be good, such as cash or credit cards).

Most Property Auction Houses do not advertise to the public as they are still aimed at professional purchasers, so you will need to make inquiries on the Web or at your local estate agent to determine when and where a property auction might include properties of interest will take place.

Be prepared to move fast. Property Auctions occur only three to four weeks after the property auction catalog is first issued. If you are subsequently successful at auction, you will usually have between 14-28 days only to complete. A ten-day default period will follow this where the purchaser will be charged interest and can, in the worst case scenarios, be used to extend the 14-28 day period. Check the Auction guide small print to see what penalties this will incur.

An intention to bid will need to be registered (either before the auction or in the auction room). If the bid is successful, the sales memorandum must be signed, and the deposit will be paid there and then.

The buyer will often be responsible for the property’s insurance when the gavel falls. The date of completion, when the balance of the purchase price will be paid and possession will be taken, will be stated in the conditions of sale.

If a property being sold does not make its “reserve price,” then although this is generally not disclosed, the auctioneer will state that the current bids are close to the reserve price. A subsequent conversation after the auction may allow you to purchase the property below the reserve price if the vendor agrees.

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When profiting from rental property, the most important thing is to buy the RIGHT property at the RIGHT price. However strong the local rental demand and general availability of good quality tenants, it will all be to little use if your investment property is poorly located or unattractive and of the wrong type for the local market. So, time spent surfing the net, building relationships with good local agents, and viewing properties yourself will be time well spent!

Concentrating on yield

For years, property investors have been concentrating on potential capital growth and being prepared to accept fairly unimpressive net yields of 3% or 4%. Obviously, in a property market with little inflation, this will no longer do, and investors must look at what sort of yield a property might realize while still, of course, regarding the property as a long-term capital investment Vlogger Faire.

The problem will be that you will need fairly serious amounts of capital to capitalize on this developing situation. There will still be mortgages available, but only to people regarded as a reasonably good credit risk. The days of the 90% and 100% mortgages are generally over for the foreseeable future, and in the end, that will not be a bad thing.

When the current boom began in the ‘gold rush days of the late nineties, it was relatively easy to profit from buy to let. Landlords with the right properties could achieve as much as 15% yield along with phenomenal capital growth, and even a ‘so-so’ property could be profitable. That is no longer the case. With the huge increase in property prices and the increasing competition between landlords for tenants, it’s become hard to get more than a 5.5% Net Yield, so more than ever, it’s essential to buy the ‘right’ property.

Buying investment property Do’s and Don’ts.

I suppose these do’s and don’ts are not hard and fast ‘rules, and there are always exceptions, but you would do well to follow these practical guidelines to profit from your properties.

1. Don’t get too personal

Don’t buy an investment property just because you would like to live in it. Always look at it from potential tenants’ points of view.

Also, try to avoid spending too much refurbishing the property. You may fall in love with a fantastic £20,000.00 kitchen and a £10,000.00 bathroom with taps costing over £200.00 each. Still, unless yours is an extremely up-market apartment, you will be wasting your money, as there tends to be a ‘ceiling’ rent for a given size flat or house in any given location.

2. Do research on the market. Who will be your tenants?

Where and who are your potential tenants? Are there businesses and organizations with an ever-changing workforce locally, such as hospitals, universities, and even TV studios, where people are usually employed on short-term contracts?

Flats and houses conveniently located for this kind of place should usually be let easily.

3. Do be well connected

The adage, ‘Location, Location, Location,’ is paramount for suitable buy-to-let properties. It is always helpful for the parcel to be no more than 15 15-minute walk from a station in a city like London, or at least close to other travel links such as motorways, bus routes, etc. Also, look for handy shopping facilities, bars, and restaurants, as these are always attractive to tenants.

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