buying property

The Biggest Purchase Most People Make

For most people, buying a new home is often the most expensive transaction they will ever make in their lifetime. So when you buy a new home from a Property Development company you would expect your purchase to be well protected. Unfortunately, this is not always the case

Firstly I would like to point out that the vast majority of Property Developers are reasonable and responsible business people who want a satisfied & happy home buyer and understand the importance of a repeat or returning customer. However, as with any industry there are rogue traders, and plenty of them.

In a buoyant economy the developer is in full control… They are in a sellers market and with house prices rising it is an easy time for rogue traders to enter the property development game. When recession hits town the tables quickly turn and it is then we realise those times in the night camp queue outside the local estate agents office are a long and fading memory. The purchaser is now in a buyers market albeit incapable of getting finance!

But buyers market or sellers… The discerning house buyer must be on guard, after all if you were to buy a new vehicle you would test drive several cars.. Ask around to see what cars are considered a good buy, haggle on price with the dealer.. Request a warranty request a service plan.. haggle with the lender on interest rates, possibly even request a full tank of fuel but when it comes to house buying we are much less prudent. And don’t be fooled, just because you are paying the best solicitor in town a ransom for coordinating a smooth transaction they do not dig deep enough to ensure you are getting plenty of bang for your buck!

So to ensure everything goes according to plan please consider the following steps before purchasing your new home from a property development company:

1. Initially gain some financial guidance to help you understand everything involved. This will help you establish what you can afford and how much the banks are likely to contribute. Be certain to secure the best deal for your mortgage.

2. Shop around and let the developer or sales agent know you are shopping around. Express your interest in several properties and try to establish which development company seems honest, transparent and fair. Play the game and prepare yourself for negotiations.

3. Once you have decided on the new home you would like to purchase you should spend a bit of time talking to your prospective neighbours. Ask them if they were pleased with the deal they received. Honest development companies will have nothing to hide and should actively encourage you to do this. Good developers know that a positive endorsement from a happy customer will sell a property much quicker than a sales agent ever could.

4. If your neighbours’ comments are positive and you are fully satisfied, then you should put in an offer to get yourself a good deal.

5. In order to avoid arguments when it comes to closing the deal and processing payment we would recommend agreeing everything in writing first, such as house price, the deposit and the cost of any extra building work needed.

6. Commission a solicitor but don’t assume they will be prudent on your behalf. Ensure they are dealing with land registry, building control certificates / codes, planning permissions and any other local authority matters. All certificates and permissions must be in place before the transaction is processed.

7. This is the big one to look out for – the site management company. All to often this is overlooked as it is only a small annual fee. Find out who the management company are and what they will be doing in return for your hard earned cash. Remember that they are employed and paid by you and your neighbours and can be relieved of their duties at anytime if you are dissatisfied with their input.

8. When building work is complete check your house over. Ensure you are happy with the building work. Go through each room and list out the problems. Check all finishes, electrics, heating, plumbing, check all windows, smoke alarms etc. Good developers will rarely have any build problems as they run a very tight operations but if they noted them down and ask for them to be fixed before the final transaction takes place.

9. Before the final transaction takes place both parties should be happy. It is in the development company’s interest to ensure that they have a happy home owner, who will spread the word about this great new development. Then when the next phase of buyers arrive and knock on your door you will have nothing but good things to tell them.

When you are satisfied with your new home make the final transaction. Exchange email addresses with your neighbours and keep in touch, even consider a facebook group page. Check back frequently to see if your neighbours are satisfied with the management company’s work. Hold an quarterly get together on your street and be safe in your new home.

For more information on purchasing a house and Property Marketing visit our site. We can help with all aspects of the buying process including 3D Architectural Visualisation.

categories: Real Estate,Estate Agency,Buying Property

buying property

Purchasing Land At or Near the Beach: A Great Way to Start Investing in Beach Real Estate.

Purchasing land at the beach requires finding land at or near the beach that has not been developed with a house. Finding land that is actually on the ocean or waterway is challenging, and can be prohibitively expensive. Land just off the ocean or waterway tends to be more available, and requires less investment. Either way, there must be value in the property for it to be a good investment. Look at the following points to help you figure out if it will have value.

1. Determine why the land is for sale.

2. Research the area to see if utilities are available for a house.

3. Are development projects forecasted or expected in the area?

First off, determine why the land is for sale. Frequently zoning restrictions prevent landowners from building or doing what they want, and they will try to sell it. If you are not aware of these restrictions and rules, you might be in for a big, and bad, surprise. The ground and surrounding area might not be supportive to buildings. For example, sinkholes might seem sturdy for many years, but can begin to falter over time, causing unstable ground. Know what you are buying before you buy.

Second, research the area to see if it has all the necessary utilities to support a house. If there are electrical lines, but no sewer access and rules against a septic tank, then the land won’t be worth as much. Keep in mind that if the land doesn’t have all the utilities it needs available, it might have them available in the future. Land development close by might mean that a sewer line is put in. Purchasing the land before those events happen would allow you to get it for less money, and ultimately have a larger profit.

Lastly, make an evaluation of the area and what potential residential development and commercial development project might take place. Development projects can both benefit and detract from the value of a house. If you happen to find a perfect piece of land, for instance with a clear view of the ocean, an open area capable of putting a house on, and forest surrounding the house on all other sides, then development projects are not as negative. If you don’t have those, and the development would make your land feel crowded, then it would be a detraction. The main idea is to think long term about your investment.

Buying land at the beach is a great way starting point for an investment property. For more information, check out Jeremy Szechenyi’s awesome Blog on beach property investments.

buying property

Cheap Houses Are Cheap – But Are They Really Bargains?

I had to go to the grocery store on Saturday afternoon to pick up some basic items. You know, bread, milk, tomatoes, etc. Our favorite local store is closed on Sundays so on Saturday they normally mark down some perishable items with huge discounts. It’s extremely tempting to snatch up some of these cheap items unless one realizes that there’s a good reason the price is reduced.

That discounted loaf of bread has already reached its “sell by” date. Before we can use the whole loaf it will most likely become moldy and we’ll have to toss half of it. That gallon of milk is also about to expire; by the time we get through half of it, the milk will probably sour. And that shrink-wrapped package of six tomatoes? They’re already getting soft – how fresh will they be in 2 or 3 days? Ugh!

There are times when cheap really is “cheap” (as in cheesy). The property market can be very much like the grocery market – there’s always a reason that a bargain is priced well below the normal market value. Discovering why a cheap property is heavily discounted is critical. Without additional information it is impossible to determine if it is really in your best interest to pursue. Seeking the advice of a well qualified buyer’s agent is a very wise move to make before jumping on a cheap home.

The reasons that homes are listed at bargain prices can generally be classified in just a few categories:

1. The “Fixer-Upper”

Many homes that have fallen into disrepair can be purchased at prices well below the local market price of well maintained properties. If the current property owner is unwilling or unable to make necessary repairs their only option would be to offer it for sale at a bargain price.

If the prospect of investing “sweat equity” (i.e. manual labor) is particularly unappealing, you may want to avoid this type of cheap home. Likewise, if paying someone else to perform the necessary repairs is out of the question – walk away. However, If the prospect of doing the work yourself doesn’t make you uneasy, these fixer uppers can be an excellent choice.

2. A Less Than Desirable Neighborhood

We’ve all heard the saying that the three most important aspects of real estate are location, location, location. Well, it’s really true. The value of a home can vary quite a bit depending upon its neighborhood. This can be fabulous for the homeowner in an upscale location. However, it can be devastating for a homeowner in a neighborhood that has fallen on hard times. Contrary to many people’s beliefs, real estate values do not always increase with time.

In some cities, certain neighborhoods that have been on the decline are gradually being revitalized through the renovation of individual homes. As these renovations spread, the potential value of property in the immediate neighborhood can begin to climb. Your Realtor will be able to give you an idea about the direction that prices are moving so that you can make a well-informed decision about the potential value of inexpensive homes that fit this category.

3. “Priced to Sell Quickly”

Circumstances may arise when a homeowner is under pressure for a speedy sale. The seller may need to liquidate assets for immediate cash in hand. He may be facing a deadline relocate for employment purposes, or he may need to stop paying double mortgage payments if he has already committed to purchase another home.

Inexpensive homes in this category usually provide the best value. However, these bargains do not normally remain on the market very long since a fast sale is the very reason that the property was discounted. The best approach to finding these fleeting opportunities as they arise is to have your buyer’s agent notify you when new property listings hit the market. Most real estate agents have access to automation tools that will automatically notify you via email the same day that a property that meets your requirements is put up for sale. Without that type of competitive edge, it’s likely that you’ll never hear bout these prime opportunities.

4. The Challenge of the Unknown

This is the “catch-all” category for homes that don’t seem to fit any of the three previous categories. They are the riskiest properties and should be approached with extreme caution. There is always a reason for a house being under priced – if it’s not apparent at first glance you may have to do some serious investigating before considering a purchase. Sellers are obligated by law to disclose any information that affects the home’s value. Your buyer’s agent will prove invaluable in these cases by helping you ask the right questions.

Obtaining the advice of a buyer’s agent and investigating the reasons that “bargain” properties are priced so low are the keys to discovering the true value of a “cheap” home. These deals can look very attractive at first but, only after further evaluation, will you have an idea if a property may turn out to be a “money pit” or a fabulous opportunity. You won’t regret performing your due diligence.

Jim Navary has been a researcher and freelance writer for more than thirty-five years covering a wide range of topics. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in Fort Lee VA real estate and Colonial Heights VA homes for sale.

categories: cheap property,cheap homes,buying a home,buying property,inexpensive home,inexpensive property,real estate investing,purchasing a home,purchasing property,real estate,investing in real estate,buying a house

buying property

Investors Sticking To Proven Locations For Real Estate Investments

As the international economy continues to recover, investors are starting to return to real property investments in a big way. However, whilst much investment was seen in exciting new locations over recent years, the tide seems to have turned back to the more traditional European countries.

Heading the list, particularly from UK and European investors is France. Indeed, such has been the surge in interest in France; market estimates put inquiries at a simply staggering third of all inquiries received.

France has always been a good port to head to when looking at realty investments; and this is truer now. Helped by successive governments’ cautious approach to all things financial; high quality investors have been seduced. Other than this, there does not seem anything particularly attractive.

Indeed, this makes Spain’s resurgence all the more surprising, particularly in light of some worrying real estate and land related stories across the media. This has not hampered inquiries rising by more than twenty percent over the last twelve months however.

However, whilst these reports over licensing laws corruption and land grab issues have enjoyed much analysis in the international press, much of this has been driven by political maneuvering and is really nothing new.

Whilst private buyers, (retirees, second home buyers etc), may have been put off, it has simply made the market more exploitable for the seasoned investor. That interest rates and a flood of properties have been seen of late too, perhaps this surge in realty investments is not such a surprise after all.

This of course puts both France and Spain collectively, controlling in excess of half of all market inquiries emanating from the UK and Europe. However, a sizable amount of interest is also to be seen in Turkey, Portugal and Italy.

Turkey, which is often referred to as the new Spain, enjoys many of the same benefits. Most notable of course is the Mediterranean influence in the food and weather. Tourism too is soaring, with estimations that the thirty million visitor mark will be reached for the first time this year, (2009).

Not being part of Europe, and subsequently the strong Euro, has also helped a great deal of course. Whether or not this will change should the country be welcomed by Europe is hard to say; though it is unlikely for the foreseeable future, and its thirteen percent rise in inquiries looks set to continue.

Portugal and Italy were not hit as hard as France and Spain; mainly due to their lower market share anyway, but they now are looking stronger in the top five of real property investments inquiries.

Portugal remains attractive for several reasons; enjoying lower realty prices than its neighbor Spain being key amongst these. However, whilst it was generally accepted to be a starting point for property investments, this is not the case now, as realty continues to be amongst the best value with all things considered. It stands very much on its own credentials now as a result.

Italy will always be a popular draw; though vibrancy tends not to move away too far from established tourist sites. However, this is probably more indicative of the pedestrian bureaucracy throughout Italy’s regions, than anything else. Rises here have clearly been helped by the withdrawal from the likes of Bulgaria and Croatia however; where bargain property investments are starting to be seen again.

The real estate market continues to devalue, with even luxury real estate falling in price, and perhaps making some real estate investments more affordable than was the case until the global credit crisis.

categories: real estate investing,investments in property,buying property,buying real estate,real estate,property