Why to Consider Apartments For Rent – Read This Article!

As compared to purchasing a home, apartments for rent is always one of the best options and easy. So the moment you rent any apartment you certainly can enjoy a number of benefits. So in case anything every goes wrong with the property you just have to try and contact the property owner. If you are staying in a rented apartment then you just don’t have to maintain the lawn or even pay for the maintenance of the house. You just have to pay a single monthly rent check and all your problems are sorted out. In case there is any leakage then you just have to call up the property owner. One main advantage of selecting apartments for rent is that you may never have to pay separate check for each and every house bill.

Believe it or not, the moment you plan to stay in a rented apartment you are sure that you might never have to pay much money. Renting apartment is in fact very much cheaper as compared to purchasing a home. In case you have to stay in a metropolitan city then the cost of renting apartment is much cheaper as compared to purchasing it. So if you need to rent apartment then you can also go and rent a condo at a very reasonable cost. Another advantage of selecting Apartments for Rent is that if you feel that you are just not happy by the place then you can always change it or select another place to stay. But in case you purchase a home then it might not be possible for you to sell it every time you are not satisfied by it.

You also never have to pay thousands of dollars to the estate agent as down payment or big monthly installment. You also never have to worry about paying for building inspections or the tax cover and insurance coverage. Another advantage is that you might never have to pay huge mortgage amounts or interest rates when renting apartments. You can also select apartment that fits your budget and your likes and then rent the place. Even if purchasing a home can offer you with tax break still you might not be able to make use of this offer every time or in most cases. There certainly are not many benefits that you might get when purchasing a home. But there certainly are a number of benefits that you can get when renting apartment. In case you are selecting Apartments for Rent you can still get a number of tax benefits. If you are paying big amount of rent then you get a bigger relief in your taxable amount. So the moment you plan to rent apartment you can always get a number of flexibilities.

Real Estate Development – When is the Right Time to Get Started in Property Development?

The media is currently full of real estate ‘doom and gloom’ – real estate repossessions and arrears are up and real estate prices are down … its almost as if the ‘sky is about to fall’! This situation has seen many real estate developers, and property investors generally, leave the market – and for those thinking of starting out in real estate development, these are scary times indeed.

What seems like the worst time to get into real estate development can, in reality, be the best time. Successful real estate developers today realize that they can use time to their advantage – their real estate development projects will typically not be ready for sale or rent for 2 to 4 years from inception. So if they have bought well, they are less likely to be affected by the economic situation at the time of purchasing their real estate development site.

In fact, a weak market is a real estate developer’s paradise, because a weak market is a buyer’s market, and one of the first steps to any real estate development project is securing a viable real estate development site on the best possible terms.

Although we know that the real estate development business is cyclical, and many parts of the world are in a property downturn, we also know from history that knowledgeable real estate developers are successful in any market – falling, flat or rising.

We’re working towards what we believe the economic conditions will be in 12 to 36 months time. Indeed we ourselves are still active in the market – seeking Council permission for a number of real estate development projects. This gives us the opportunity to act quickly and build our approved real estate development projects when the market does become buoyant.

It is our opinion that the following market signals are some of the key factors that will lead to increased future opportunities, especially for real estate developers:

· The pent up demand for housing. In March 2008 leading Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30% to 40% over the next five years because of the built-up shortages of housing.

· The current Federal Government has stated that they will work towards increasing Housing Affordability and have begun to announce incentives including Tax Credits of $6000 per year if the housing is rented at 20% below market rent.

· We believe that an increasing number of people, in the short to medium term, are likely to require the rental accommodation that we intend to build. This is due to either their financial stress (can’t afford to purchase a home) and/or demographic trends (including Gen-Ys who are less likely to buy Real Estate).

Even if our ‘crystal ball’ is incorrect, we know we have the resources to hold real estate development sites during possible further market fluctuations to come, and increasing rents are certainly helping with that!

Our belief is that this is a golden time to act – perhaps a once in a generation opportunity. Maybe it is not the time to sell completed real estate development projects at the moment, but it is certainly a great opportunity to secure the development site and obtain development planning approval. Now this strategy is not for everyone – you must have the necessary resources to hold the development site and especially the knowledge of real estate development to take advantage of these opportunities.

The best approach for anyone contemplating real estate development will depend on his or her own personal and financial circumstances, but the key message here is that you must do something!

There are many strategies that small real estate developers are currently using, if they don’t have the resources to complete a real estate development project right now, including to turn their real estate knowledge into cash by locating ideal property development sites, perhaps taking out an option on the site, and on-selling the ‘Development Permit Approval’ to someone who does have the resources.

Successful real estate developers know that times of opportunity like this only come along once in a while, and they’re taking action so they don’t miss the boat.

Regardless of your immediate financial situation, this is the perfect time to leverage your real estate development knowledge into current or future income. If you have any doubts about your ability to do this, or you would like an experienced real estate development mentor to guide you, act now to get the knowledge and mentoring that you need. There is no time to waste!

A Quick Commercial Property Investment Guide

As the residential investment property market becomes fierce, many investors are starting to recognise commercial property as a viable investment option. So, don’t put all your eggs in one basket and consider diversifying your investment portfolio by investing in commercial property.

What is Commercial Property?

The term commercial property (also referred to as commercial real estate, investment or income property) refers to building or land intended to generate a profit, either from capital gain or rental income.

What Type of Property is included in Commercial Real Estate?

Commercial real estate is classified as property assets that are primarily used for business purposes. Commercial real estate is commonly divided into the following categories:

1. Office buildings

2. Industrial property

3. Retail/Restaurant

4. Multifamily housing buildings and

5. Farm/Rural land.

In addition to the above, commercial real estate can include any other non-residential properties, such as:

>> Medical centres

>> Hotels

>> Warehouses

>> Malls and

>> Self-storage developments.

What are the differences between Commercial Property and Residential Property Investments?

When you invest in commercial real estate, you still expect to rent out your property and receive rental income from a tenant as you do when you purchase a residential property investment. However, the major difference between investing in commercial real estate compared to residential property is the Rental Agreement. With commercial real estate, the property is usually leased to a business under a detailed contract for a much longer period (e.g. three, five or ten years).

There are some other important differences such as:

>> The Tenant is usually called a Lessee;

>> Vacancies between tenancies can be longer;

>> Goods and Services Tax applies to commercial real estate (i.e. to the purchase price, rent received and any expenses in relation to the property); and

>> Maintenance costs are usually paid for by the Lessee, which means net rental income tends to be higher.

What is an Annual Return on Investment?

The “annual return on investment” is the amount earned on the investment property. The amount earned, is expressed as a percentage, and it is called the property’s “yield”.

So, if you are considering investing in commercial real estate. You should always ask yourself the following questions:

1. What return on investment will you get?

2. What is the property’s yield?

How is the Yield calculated?

Yield calculations are worked out by dividing the annual rental income on the property by how much the property costs to buy. For example:

Gross Yield = annual rental income (weekly rental income x 52) / property value x 100

This is best illustrated by using the following example:

>> Assuming you buy a property for $950,000; and

>> Rent the property out for $2,000 per week ($104,000 annually).

Your Gross Yield will be 10.9%. It will be calculated in the following way:

($104,000/ $950,000) x 100

If you want to invest in a commercial property, you need to keep in mind all the information mentioned here. You can seek help and guidance from a professionally qualified and expert finance broker, who specialises in obtaining the right funding for your investments.

Truly, having an independent and expert finance broker on your behalf can secure your eligibility for a commercial property loan, not to mention get you the best loan deal that suits your individual needs and objectives.