Archive for November, 2009

Is Investment Property a Good Idea in Today’s Economy?

Saturday, November 28th, 2009 at 2:14 PM

Real estate investing

has and will always be the most powerful way to build unlimited wealth. Yes, we are in a financial meltdown and everybody is screaming “Abandon ship!”; but this is the type of blind panic that will make investing in property a true investment juggernaut that will set your family up for generations to come. Do not be fooled by my tone, this type of investment vehicle is not an overnight financial cash cow!

The question I get asked the most is; “Is Investment Property a Good Idea in Today’s Economy?” Well, let me answer that by saying that the real estate prices have dropped so significantly that this is a great time to buy property for investment. The time to invest into rental property has arrived.

Another tip is you should get to know your locations well. You will want to make sure your location is desired area for renting.

For junior investors, I believe you must start small. Perhaps a 1 bedroom or 2 bedroom condo would fit the bill. I have said this before, but try to save money for a down payment. With no money down it is near impossible to secure positive cash flow. I also preach that a good credit score is essential; especially in today’s economy. A great FICO score may significantly reduce your mortgage repayment installments which has a good impact on your monthly cash flow. If you decide to pursue homes versus condos, I recommend beginning with “starter homes” rather than moving into the more expensive family homes or even commercial real estate.

This will also help in the chance that you are not able to rent the home and you have to take over the payments

Another very important tip I have for you is to only pursue motivated sellers. You will weed out the signs from a highly motivated seller or your real estate agent will know. You should strive to always have a professional inspection of your commercial real estate property or home or condo. Some fore-go this important part of the process and it ends up being a mistake.

With the economy the way it is, there are people out there that prefer to rent versus buy a home. It is why I truly believe investing in investment property has and will always be a good idea even in today’s economy. Just make sure that you do your homework. There are many sources and people out there to help you.

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For more information go to => http://www.yourprimerealestate.com/real-estate
Dr Thoriso Mashego is a successful medical doctor with his own private practice in Cape Town South Africa. He owns an online business and an avid real estate investor/trader.

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How To Do A Proper Investment Property Search

Saturday, November 28th, 2009 at 10:57 AM

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Should you dream of investing your hard earned money in the real estate game you would be hard pressed to find a more suitable time to start than now. There are currently enough property bargains due to foreclosures by mortgage lenders and short sales.

There are so many uber deals that the typical seller cannot compete. Most Realtor’s are guiding potential sellers with the fact that if they do not have to sell, then now is definitely not the time to put the home on the market. Property is not getting top dollar when the bank owned property is eating up the market.

If you want to see what is available then Realtor’s can get you the real estate listings. And this is a much better avenue to get access to all available properties with the criteria that you are looking for in the areas that interest you.

Realtor’s have the most up to date information at their fingertips and with the search engines that are in their Multi Listing Service, you can dictate that you only want the foreclosure listings or any other set criteria. You cannot expect to find the best deals on property by just riding around and looking for yard signs.

This is not the most profitable of methods.Once you locate a property that interests you that is a super good deal, it is time to act quickly. These are the only properties that are receiving multiple offer deals as you read this.

So there are steps you want to take prior to even calling the Realtor and checking to see what is available. You must have your pre-approval letter from your mortgage lender handy when you are making an offer on any foreclosure properties.

And there are some stipulations that are not with a traditional sale. You are buying the property “as is”. So if you have concerns then you should have someone look at it who is knowledgeable about structural issues that could be going on with the property.All in all, it is a wonderful time to get the best deals in real estate.

The government is trying to help in clearing the foreclosures from the market by giving incentives such as the $8000 first time buyer’s tax credit.

The market needs to be rid of these foreclosures or the economy in the mortgage market, will not recover. The sales of these properties will help the traditional seller be able to get closer to appraised value for their own property.

So resist the speculative stock market and consider what your local real estate climate can do for you.

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For more information you should head on over to the website http://www.yourprimerealestate.com/property by the author. Dr Thoriso Mashego is a successful real estate investor/trader, an online business owner and a medical doctor with his own private practice in Cape Town South Africa.

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