By Gloria Smith
It's true that flipping real estate properties is one sure way of earning big bucks in a short span of time. When done properly and with careful planning and budgeting, investors have a good chance of attaining success. However, flipping homes is not as easy as some people might think because there are risks and downsides to this endeavor the reason why it's always best to be well informed before taking the plunge.
Flipping real estate is not just limited to buying a home, renovating it a bit and reselling it for a profit. Several vital factors are still involved which investors have to be aware of such as renovation expenses, property taxes, insurance and mortgage costs as well as rental pressures.
If you're buying a distressed property, you will need to spend some money renovating it before reselling the home.
In this case, you will have to estimate your renovation costs including materials and labor to avoid going overbudget. If you spend so much on the upgrades, you might not be able to recover your expenses and get a good profit by the time you sell the property especially in an unfavorable market condition. So the best thing to do is save money on building materials, paint and appliances if possible. If you can do the repair works yourself, well and good.
There is also the danger of increasing your property taxes if you fail to resell your flipped home right away and hold it for a few more years. Investors should be aware that taxes have nearly doubled in a period of five or six years in some hot real estate markets.
Failure to sell the home quickly is another risk flipping investors have to face. Real estate investors suggest that flippers look for buyers who are eager to live in a home and give them a lot of motivation to purchase your home. One way of drawing buyers is to stage the property meaning, make it attractive and clean inside and out as possible. It's a good idea too if you pre-qualify potential buyers who call to inquire about your property. Don't waste your time entertaining buyers or investors who are not serious enough in getting your home.
If your property stays long on the market, you might be forced to just have it rented. Also, there's a chance that the rental fee you charge may be less than who want especially when the market is saturated with rentals. With this situation, it will take long for you to recover your expenses and earn your profit thus, leaving you with a bad investment.
If worse comes to worst, you can opt to just sell your home at a very low price or keep the property and accept your loss then continue with whatever plans you have. Holding on to the property for long will only discourage you all the more. If you failed to study your plans before, then it's high time that you learn about the basics of buying and selling real estate so you can avoid the common mistakes. You can use various resources from books to the internet and you can even attend real estate seminars in your locality if they're available.
This article is brought to you by PropertyFlippingInfo.com. Read articles on house flipping, hard money lenders, and real estate short sales.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith
Correction Phase
ป้ายกำกับ: Commercial-Property
By George Gonigal
Demand goes down, developers cut prices…
Hard-pressed by the falling demand, the higher-end segment of residential real estate in Gurgaon has been undergoing the phase of correction. As per the reports of global consultancy firm DTZ, the prices have already gone down by an average of 10 per cent in the past two quarters, and it is mostly the projects that have kept the prices for their apartments above Rs 1-crore.
Besides, the property markets of Gurgaon are also suffering from the oversupply. The DTZ report confirms that the supply side has far exceeded the demand side and the margins over the sale of property are under pressure. As per industry reports, Gurgaon will add at least 10,000 residential units in the luxury housing segment by 2010, however the demand may continue to remain below expectations.
Meanwhile, the absorption rates for projects with an apartment size between 2,000 and 6,000 sq. ft have slipped down significantly and the developers are reportedly slashing prices in order to create demand.
Fall in investor interest
Besides the end-users, it is mostly the investors who drive the Gurgaon Real Estate markets, and most other parts of the country. On this, the findings of Cushman & Wakefield, a consultancy firm, bring things into perspective. Its reports say that housing properties in Gurgaon have overheated and prices have been touching the roof.
With this, the investors are not seeing the kind of returns that they had secured earlier from the deals, and that's why their interest in buying residential property in Gurgaon is comparatively lower than it was a couple of years ago.
Ultimately, the markets now are primarily driven by the end-user, who is not willing to buy luxury houses. After all the rate of interest on home loans has shot up from 6-7 per cent to 11-12 per cent in the past 3-years, and a buyer thinks twice before borrowing at such rates.
Future Outlook
As for the coming months, the industry experts "feel good". At first, they say that the demand for residential properties in Gurgaon would gradually pick up with festive season in the offing.
Secondly, almost all the major banks like SBI, ICICI, BoB have announced for a cut in interest rates anywhere from 50 to 75 basis points, and they are coming up with quite a variety of lucrative offers as well. Over that the developers are also open on cutting prices of their units for the sake of making a deal and it is turning into a buyer's market, says a group of brokers from Gurgaon.
Perhaps, the combination will drive at least the end users to spur demand and the markets may take spark with positive trends coming back in place, they feel.
George Gonigal is a property dealer, providing here the best and latest info on Bangalore Properties
Article Source: http://EzineArticles.com/?expert=George_Gonigal
Demand goes down, developers cut prices…
Hard-pressed by the falling demand, the higher-end segment of residential real estate in Gurgaon has been undergoing the phase of correction. As per the reports of global consultancy firm DTZ, the prices have already gone down by an average of 10 per cent in the past two quarters, and it is mostly the projects that have kept the prices for their apartments above Rs 1-crore.
Besides, the property markets of Gurgaon are also suffering from the oversupply. The DTZ report confirms that the supply side has far exceeded the demand side and the margins over the sale of property are under pressure. As per industry reports, Gurgaon will add at least 10,000 residential units in the luxury housing segment by 2010, however the demand may continue to remain below expectations.
Meanwhile, the absorption rates for projects with an apartment size between 2,000 and 6,000 sq. ft have slipped down significantly and the developers are reportedly slashing prices in order to create demand.
Fall in investor interest
Besides the end-users, it is mostly the investors who drive the Gurgaon Real Estate markets, and most other parts of the country. On this, the findings of Cushman & Wakefield, a consultancy firm, bring things into perspective. Its reports say that housing properties in Gurgaon have overheated and prices have been touching the roof.
With this, the investors are not seeing the kind of returns that they had secured earlier from the deals, and that's why their interest in buying residential property in Gurgaon is comparatively lower than it was a couple of years ago.
Ultimately, the markets now are primarily driven by the end-user, who is not willing to buy luxury houses. After all the rate of interest on home loans has shot up from 6-7 per cent to 11-12 per cent in the past 3-years, and a buyer thinks twice before borrowing at such rates.
Future Outlook
As for the coming months, the industry experts "feel good". At first, they say that the demand for residential properties in Gurgaon would gradually pick up with festive season in the offing.
Secondly, almost all the major banks like SBI, ICICI, BoB have announced for a cut in interest rates anywhere from 50 to 75 basis points, and they are coming up with quite a variety of lucrative offers as well. Over that the developers are also open on cutting prices of their units for the sake of making a deal and it is turning into a buyer's market, says a group of brokers from Gurgaon.
Perhaps, the combination will drive at least the end users to spur demand and the markets may take spark with positive trends coming back in place, they feel.
George Gonigal is a property dealer, providing here the best and latest info on Bangalore Properties
Article Source: http://EzineArticles.com/?expert=George_Gonigal
How To Sell Your Home In Today's Failing Housing Market
ป้ายกำกับ: Selling
By Allison Roberts
More American homeowners than ever are filing for bankruptcy or seeking help with their debts. A large percentage of these people struggling with their finances attempt to sell their homes and to escape a mortgage they cannot afford.
The mortgage industry is in a terrible financial state. News stories of subprime lending disasters plaster the evening news and many web sites. Smaller subprime lending companies have filed for bankruptcy, and even some of the most respected mortgage lenders are on the verge of insolvency as well. The government has even stepped in to keep the industry above water.
Many homeowners caught up in the housing debacle are desperate to sell their homes. Thousands of homes across the nation are for sale due to foreclosures, which makes it a buyer’s market. Buyers now have the luxury to be choosy due to the vast number of houses on the market.
You must offer the buyer the best product, which means home renovations are critical. If you invest time and money into renovating your home, then the payoff can be huge. You can sell your home and take advantage of the buyer’s market.
Real estate experts, and many home improvement shows, advise sellers about areas of their homes most important to the buyer. Kelly Todd, a real estate expert, suggests these four areas of your home to renovate if you’re hoping to sell quickly and for a profit:
Kitchen The kitchen is traditionally a gathering place for families. It serves as a meeting area, even if you’re not eating. A sleek, clean and organized kitchen adds value to your home.
Key elements:
Floors – If your floors are outdated, replace them with tile, wood, or a laminate alternative.
Cabinets and countertops – Get a price quote from a remodeling company for replacing both of these. Pick out new hardware for the cabinets and a sleek sink to match.
Appliances - Only replace your appliances if they are out of date, look shabby or do not work.
Paint – Paint your walls a neutral color to complement the new floor, countertops and cabinets.
Likely added value to the home: Up to $40,000 increase in sale price.
Bathrooms Remodeling your bathrooms is a good alternative if you cannot afford to redo the kitchen.
Key elements:
Floor and Walls – These set the atmosphere for the space. Ceramic floor tile is your best bet in the bathroom.
Shower and Tub – Bleach the tub until it shines. Replace the tile surrounding it and consider installing glass door fixtures to replace a plastic or cloth shower curtain.
Lighting and counters – Replace old light and sink fixtures, and install granite countertops. All elements make for a very stylish room.
Likely added value to your home: Up to $10,000 per bathroom increased sale price.
Landscape Your front yard is the first impression potential buyers will have of your home. Having a good curb appeal sets the tone for the rest of the house.
Key elements:
Yard – Lay new sod to make sure the grass is full.
Walkways – Stone or tile walkways with lighting add a stylish effect.
Plants – Replace all dead/dying plants with new healthy ones and get rid of any weeds in the flower bed. Mix shrubs with flowers.
Likely added value to your home: Up to $15,000 increased sale price.
Walls Clean and well-kept walls give your home an organized cozy feel.
Key elements:
Wallpaper – take it down. Do not paint over it. Sand walls after removing wallpaper to prepare them for fresh paint.
Paint – Choose rich colors that appeal to many people. Stay away from boring white. Freshly painted walls give the impression that your home is well cared for and clean.
Likely added value to your home: Up to $5,000 increased sale price.
Realtors, interior designers and home renovators laud these time-tested techniques for improving the value of your home. However, if you are suffering from extreme debt, it is unlikely that you will be able to attain a loan to make these home improvements.
Here are a few tips that won’t cost much for “staging” your home for a walk-through:
Clean out the clutter. Put all clutter into organized bins and store them in your garage or basement. Leave mainly furniture, appliances and accent items.
Paint. - A fresh coat of paint doesn’t cost much, and it will give your home a much newer, cozier and cleaner feel to a potential buyer.
New linens. - New linens on your beds improves the eye appeal of a bedroom. Also, consider rearranging the furniture. Potential buyers need to see the usability of the space.
Candles and lighting. - Set the mood. A few candles and off-set lighting can give your home a pleasant feel that will enable potential buyers to see themselves enjoying the space.
Mow the lawn. - This one is simple. Clean up the outside of your home. A mowed lawn and weeded flower bed increases your home’s curb appeal.
Regardless of why you are selling your home, following these suggestions will help you sell faster and survive the crumbling housing market. If you are in debt, it may seem scary to spend money on making improvements to a home you are selling. However, small improvements dramatically increase the value of your home and your potential profit.
Author Bio: Allison Roberts is a graduate of the University of North Texas Department of Journalism. She has experience in agency and in freelance public relations. Allison currently writes for Credit Solutions and she is completing an unfinished work of her late grandfather. For more articles by Allison on bankruptcy and bad credit visit Credit Solutions.
Article Source: http://EzineArticles.com/?expert=Allison_Roberts
More American homeowners than ever are filing for bankruptcy or seeking help with their debts. A large percentage of these people struggling with their finances attempt to sell their homes and to escape a mortgage they cannot afford.
The mortgage industry is in a terrible financial state. News stories of subprime lending disasters plaster the evening news and many web sites. Smaller subprime lending companies have filed for bankruptcy, and even some of the most respected mortgage lenders are on the verge of insolvency as well. The government has even stepped in to keep the industry above water.
Many homeowners caught up in the housing debacle are desperate to sell their homes. Thousands of homes across the nation are for sale due to foreclosures, which makes it a buyer’s market. Buyers now have the luxury to be choosy due to the vast number of houses on the market.
You must offer the buyer the best product, which means home renovations are critical. If you invest time and money into renovating your home, then the payoff can be huge. You can sell your home and take advantage of the buyer’s market.
Real estate experts, and many home improvement shows, advise sellers about areas of their homes most important to the buyer. Kelly Todd, a real estate expert, suggests these four areas of your home to renovate if you’re hoping to sell quickly and for a profit:
Kitchen The kitchen is traditionally a gathering place for families. It serves as a meeting area, even if you’re not eating. A sleek, clean and organized kitchen adds value to your home.
Key elements:
Floors – If your floors are outdated, replace them with tile, wood, or a laminate alternative.
Cabinets and countertops – Get a price quote from a remodeling company for replacing both of these. Pick out new hardware for the cabinets and a sleek sink to match.
Appliances - Only replace your appliances if they are out of date, look shabby or do not work.
Paint – Paint your walls a neutral color to complement the new floor, countertops and cabinets.
Likely added value to the home: Up to $40,000 increase in sale price.
Bathrooms Remodeling your bathrooms is a good alternative if you cannot afford to redo the kitchen.
Key elements:
Floor and Walls – These set the atmosphere for the space. Ceramic floor tile is your best bet in the bathroom.
Shower and Tub – Bleach the tub until it shines. Replace the tile surrounding it and consider installing glass door fixtures to replace a plastic or cloth shower curtain.
Lighting and counters – Replace old light and sink fixtures, and install granite countertops. All elements make for a very stylish room.
Likely added value to your home: Up to $10,000 per bathroom increased sale price.
Landscape Your front yard is the first impression potential buyers will have of your home. Having a good curb appeal sets the tone for the rest of the house.
Key elements:
Yard – Lay new sod to make sure the grass is full.
Walkways – Stone or tile walkways with lighting add a stylish effect.
Plants – Replace all dead/dying plants with new healthy ones and get rid of any weeds in the flower bed. Mix shrubs with flowers.
Likely added value to your home: Up to $15,000 increased sale price.
Walls Clean and well-kept walls give your home an organized cozy feel.
Key elements:
Wallpaper – take it down. Do not paint over it. Sand walls after removing wallpaper to prepare them for fresh paint.
Paint – Choose rich colors that appeal to many people. Stay away from boring white. Freshly painted walls give the impression that your home is well cared for and clean.
Likely added value to your home: Up to $5,000 increased sale price.
Realtors, interior designers and home renovators laud these time-tested techniques for improving the value of your home. However, if you are suffering from extreme debt, it is unlikely that you will be able to attain a loan to make these home improvements.
Here are a few tips that won’t cost much for “staging” your home for a walk-through:
Clean out the clutter. Put all clutter into organized bins and store them in your garage or basement. Leave mainly furniture, appliances and accent items.
Paint. - A fresh coat of paint doesn’t cost much, and it will give your home a much newer, cozier and cleaner feel to a potential buyer.
New linens. - New linens on your beds improves the eye appeal of a bedroom. Also, consider rearranging the furniture. Potential buyers need to see the usability of the space.
Candles and lighting. - Set the mood. A few candles and off-set lighting can give your home a pleasant feel that will enable potential buyers to see themselves enjoying the space.
Mow the lawn. - This one is simple. Clean up the outside of your home. A mowed lawn and weeded flower bed increases your home’s curb appeal.
Regardless of why you are selling your home, following these suggestions will help you sell faster and survive the crumbling housing market. If you are in debt, it may seem scary to spend money on making improvements to a home you are selling. However, small improvements dramatically increase the value of your home and your potential profit.
Author Bio: Allison Roberts is a graduate of the University of North Texas Department of Journalism. She has experience in agency and in freelance public relations. Allison currently writes for Credit Solutions and she is completing an unfinished work of her late grandfather. For more articles by Allison on bankruptcy and bad credit visit Credit Solutions.
Article Source: http://EzineArticles.com/?expert=Allison_Roberts
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