4 Ways for Investing in Commercial Property Without Spending Millions

Why would you want to make a million dollar investment in commercial properties if you can make a less expensive investment? Real estate investors who are ignoring commercial properties for making an investment are actually missing a lot of opportunities, such as higher rental yields than can be earned in comparison to yields from residential properties.
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Such opportunities are attractive for people who live off investment income, like retirees. But the problem is that most of the people believe that investing in commercial property is too much of hard work and also very expensive. But the truth is that there are ways to get into the commercial real estate investment without making an expensive investment. Let’s see how that can be done.

1- Australian Real Estate Investment Trust

One of the easiest ways to invest in commercial property in Australia without having to spend millions is to buy an Australian real estate investment trust, also known as A-REIT, or you can buy a real estate exchange traded fund (ETF) on the ASX. This way you only have to spend $500. But the problem is that the property investments that are listed on the ASX are always affected by the volatility of the share market because they are not direct real estate investments. However, you can get a direct exposure if you invest in unlisted funds. Doing so might not be as easy as it was with A-REITs and you will also have to outlay a larger sum of money, ranging from $10,000 to $50,000.

2- You Can Co-Invest with the Other Professionals

This is an option available for investors seeking out opportunities for making a passive investment in commercial property. You can seek out other professional investors and groups that have proven track records of sound dealings. This is one of the best ways of investing in commercial property because it gives the investors an ability to reduce the risk because you team up with some of the tested veterans.

3- Professional Advice

The chairman of Property Investment Professionals of Australia, Ben Kingsley, said commercial property investment is the domain of more sophisticated real estate investors. But he also said that small investors can also still benefit from the same commercial property investing if they really know what they’re doing. It means that small investors also have a chance of investing in commercial property if they seek the counsel of expert professionals. For further details, you can visit stamfordcapital.com.au.

4- Finding the Right Property

You can always buy a shop or an office directly often at a cost far less than the cost of a private or residential property. For that, you would have to hire an experienced lawyer who’s familiar with commercial real estate investment and commercial property leases.
If you invest in a commercial property through one of these ways, the chances are you will earn great profits. It’s because, with commercial leases, tenants have to make the property fit for their use and for that they have to add value to the property which benefits the landlord financially. Also, with commercial properties, the rental yields are high and the leases are longer.

Landscaping Tips for Increasing Your Property's Value

While there are certainly many practical ways for homeowners to maximize their property’s value, landscaping comes out as an obvious choice. This is because first impressions matter more than anything when it comes to selling a property. Did you know that your landscape can increase the value of your home for about 15% if it’s designed properly? Whether it’s beautiful trees that improve the looks of the whole neighborhood or various water features, landscaping is the best investment for anyone looking to increase their home’s value.
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And the best thing is that it doesn’t have to be expensive at all. Of course, there are many expensive landscaping options available, but even the ones that you do on a budget will make your property worth more.

Defining Lawn Edges

For starters, your lawn should always be mowed. You can do this by yourself or hire a professional to take care of it. When it comes to edging, it will make your lawn appear as lower maintenance – which most of your potential buyers will love. Edging doesn’t have to be difficult, all you need to do is use a sharp spade to cut the soil and create a separation between your lawn and other elements, like path, or garden bed. There’s also the possibility of using stone or timber borders to physically separate the two, which can give it an even better look.

Limit the Number of Plants

Many homeowners make a mistake and go for dozens of species of plants in their gardens, thinking that it’ll improve the overall attractiveness of their property. While it may be so, this will also make your potential buyers wonder just how high-maintenance your garden is. The best way to go is to have enough plants to encourage diversity, yet to keep it in single digits. You may want to ask your local garden center about which plants are local and which would be the best fit for your neighborhood. By minimizing the number of plants that you have in your garden you’ll not only give it a more uniform look, but you’ll also create an appearance of low-maintenance, the importance of which we already highlighted earlier.

Your Landscape Should be Stylistically the Same to Your Home

While postmodernism has thought us a thing or two about mixing styles, when it comes to landscaping it’s always best to make sure that the house and the landscape are of the same style. A Mediterranean home won’t go well with an Oriental garden, for example. If you’re a proud owner of an industrial stylized home, you’ll want to go with a more modern landscape with a lot of greenery involved. Garden beds should fit the contours of your house, which is something that shouldn’t be too hard to do and it will easily make your home look more attractive. Any help and advice that you need when it comes to gardening tools can be provided by Hoselink, or other experts in the area.

Consider Adding a Play-Area

An outside play area can be a huge selling point, especially if you’re focused on selling to younger couples who are planning to start a family. It’s never been more important than today for children to have a safe spot where they can play inside the property, especially if they want to avoid their kids spending too much time in front of the computer. If you manage to incorporate a playing area well with the other elements of your landscape, you can easily increase the value and even have an easier time finding a buyer.

Plant Trees

Trees are so often forgotten when it comes to modern landscaping, mostly because people want to have a clear view of their house. But did you know that planting trees can increase your property’s value in more than one way? Having trees in your front yard will filter most of the noise coming from the outside, while also keeping the temperature inside the house more bearable in the summer. For best results when it comes to increasing value, try planting a few trees for all seasons so that your house looks beautiful throughout the year.

Bottom Line

Making a positive first impression on your buyers will already get you halfway through the sale and landscaping can help you with just that. There’s a lot that you can do to increase the appeal of your landscape and, in turn, it will return the favor by making your house look more expensive. The same way a great landscape can increase your property’s value, a poor one can potentially turn away the buyers – or make your house look cheaper than it really is. With a bit of luck, everything that you invest in landscaping will be returned to you (plus more!) once you do make a sale.

Steps You Should Take if You Want to Invest in Property

Investing in property is one of the best and most lucrative opportunities available to you. There are a lot of myths about investing, and you need to ignore those. It’s essential to make sure you make the right decisions when you plan to invest. If you can get this right, you can enjoy a lot of success from investing in property.

Have a Nest Egg

Any time you make a decision that you want to invest you need to have money saved. Investing is expensive, and investment in real estate can be hugely pricey. You have to have enough of a nest egg that you’re able to afford to invest in real estate. And that’s why it’s important to save up what you can before you start. You need to have a good amount saved. But, this could take a long time which is why you need to be careful about the decisions you make.

Speak to Experts

It’s important to make sure you speak with experts before you make any definitive decisions. This is one of the biggest decisions you’re going to be making in your life, and it’s important to get it right. Investing is a great adventure, but you have to make sure you are being sensible. So you need to look at the different mortgage brokers around, such as SMBIA. To find info about this loan broker you should visit their website. You need to sit down with them and discuss your options and what you want to do. This is the best way of ensuring you

Choose the Right Time

You have to be careful about your timing when you choose to invest in property. It’s important to assess the state of the property market. You don’t want to buy property when the market is really high, and prices are through the roof. You need to make sure you do what you can to buy when housing prices are low. That way you can almost guarantee you’re going to make a profit when you sell. If you don’t really understand the way the market works and what’s affecting it, you should speak to your mortgage advisor.

Pick the Right Property

You have to make sure you pick the right property as best you can. This is a big expense and a big step you’re going to be taking. And you need to think about the best type of property to fulfill your needs and requirements. So, it’s important to make sure you do what you can to pick the perfect property. It might be a house, a flat, or something in between. But it needs to be the right choice to get you the best possible return on investment you can get. That’s why you have to think very hard about the decision before you make it.

There are so many investments you have the option of making these days. But, if you want to get the best return on investment you will probably want to invest in real estate. This is the most lucrative form, but it is also expensive and unpredictable as well. So, you have to be sure you’ve made the right choice before you get started with this.

House Flipping vs. Buy and Hold Real Estate Investing: Which Is Better For You?

Which is the best style of real estate investing for you: house flipping or buy-and-hold real estate investing?

To obtain an answer, it will help to identify each phrase and put them each in proper perspective.

House flipping is the strategy of purchasing real estate and then selling it for a gain in the quickest time possible. A house flipping pro aims to make the biggest amount of cash in the shortest time possible. In fact, the longer the house flipper holds onto the property, the less likely he is to make significant profits.The house flipper does not hold on and rent the house. The point is that the longer the house stays on the market unsold, the more the house flipper spends on carrying costs such as financing, income taxes, insurance and maintenance.

Buy-and-hold real estate investing is all about buying and then holding the piece of real estate for a significant period of time, then selling it later for a profit.

House Flipping vs. Buy

Buy-and-hold real estate investors purchase real estate and may intend on selling at some point, but not for a while. Their main goal is income through collection of rents from tenants.

Which form of real estate investing is right for you?

 The big difference is house flipping pros get their money back fast with a quick sale, whereas the real estate investor wants income and appreciation. As far as which one is best for you, it depends on what your financial goals are. The best part of all is that you may not have to choose one or the other, many house flippers have some properties that they buy-and-hold and likewise many buy-and-hold real estate investors flip houses on occasion.

House flip guys aim to get property for the cheap then rehab quickly and then sell quickly. In doing so, it guarantees a quick profit from a quick sale. In most cases, house flippers by real estate that may need some work or “rehab” that if done cheaply and quickly can create quick appreciation so that the home is sold for a higher price than what they originally purchased it for.

Typically, the real estate will likely be purchased at a cost significantly less than its selling price (within the range from 40-80% below the prevailing market prices).

Renovating fixer uppers in need of serious rehabilitation is a popular way to house flip. The house flip pro purchases the house, quickly renovates it and then sells it within six months. To do this effectively, the house flipper needs to have general contractors and workers. He depends on to give him act rehabilitation costs, so he can project out his potential profit or loss.

Taking a beat up home and renovating it is a time tested way to house flip because in most cases, you can easily estimate rehab costs on the front end. It can be possible to acquire specialists who understand the exact renovations required and the house will look really good for a quick resale when it’s done.

This allows the home flipper to get a quick market for the house and at the same time getting a great price for the home.

In most cases, flipping houses is less of a hassle because you don’t need to deal with renters and other kinds of landlording issues. The house flipper buys, renovates and sells, it’s very simple.

Dependent on market conditions and location, the house flipper can make higher return on investment (ROI) if he/she can manage to flip the house relatively quickly. In direct contrast, the buy and hold real estate investor makes his return over time through rental income and appreciation over years of holding the property.

With buy and hold real estate, the investor makes money through “passive” income, provided his expenses are less than his income from rent. A major advantage in buy-and-hold real estate investing is if the market is poor, he can hold on and receive income and not worry about resale.

Additionally, the buy and hold real estate investor can enjoy a steady stream of income without spending money on major reconstruction. Most buy-and-hold real estate investors make relatively minor improvements to the properties they purchase. In most cases, these rehab costs are relatively minor compared to those of the house flipper.

 Although there are advantages to both kinds of real estate investing, I personally like house flipping because of the quick profits that can be made. This is especially true, the more house flip’s you do. As with anything, the more you do it the more experience you gain and in the case of house flipping, the more profit, you can realize.

But don’t discount buy-and-hold real estate investing either. Buy-and-hold real estate investing is a very cool way to create steady streams of passive income. And although the passive income may not be as passive as many real estate investors may claim, buy-and-hold real estate investing is very attractive, especially as a way to diversify your financial portfolio.

What do you think is the best, buy-and-hold real estate investing or house flipping?

Property Investment? A Growing Sector

Since global recession hit the world the property market  experienced a downturn. Property prices fell steadily and thousands of houses were repossessed by the lenders as the homeowners could not pay their mortgage
e on time. This created a disturbance in the market; but investors took advantage of this situation and started buying below market value properties religiously. 

Bank-owned properties are being sold at low rate at different property auctions; this is a good place to buy BMV properties. To avoid repossession, a lot of homeowners sell their houses to the investors; cash buyers, cash home buyers, property buyers or just home buyers are the other terms used to define a property investor.

The popularity of cash home buyers is increasing each passing day; according to the experts, cash property investors have come up as the new driving force in the market.

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Why homeowners would sell their house for below market value

Property investors buy houses for below market value and sell the houses for higher price. You might ask why people would agree to sell their houses at discounted price! Here are the answers:

It is difficult to secure quick and guaranteed sale these days; homeowners who need to sell their house quickly are ready to reduce the asking price to get a quick buyer.

Employment market is not stable yet; a risk of getting unemployed and gradually entering into mortgage arrears is still there. Homeowners who anticipate a financial hardship often decide to sell the house quickly before the problem takes bigger shape and the house goes into negative equity.

There are many advantages of working with the cash buyers; apart from guaranteed and quick sale cash buyers relieve the sellers from the complicated paperwork and other hassles. A professional property investor takes care of all the formalities and offers the seller a trouble-free deal.

Individuals who are interested to invest can buy properties at low rate now. Things will definitely change in future and property market is bound to improve today or tomorrow. The houses purchased today can be sold for higher prices later on. Many investors do a little bit of renovation to make the house attractive and bag a good deal too.

Buy to let investment opportunity

Apart from selling the house for higher price, an investor can also earn money by letting it on rent. Buy to let investment is an attractive option to make money. As many people have lost their homes over past couple of years, most of them have moved in to rented houses . Hence there is a sudden surge in demand of rented apartments in the country. Buy to let investors purchase houses at low price and then start earning money be letting it on rent to the tenants. However, the investor must collect the authorization from concerned authority to start buy to let investment business.

Overall, property market looks like the gold mine for the investors; just grab it and enjoy long term benefits.