Take Advantage Of The Current Uk Housing Market And Use Property As A Wealth Pillar

For both the property market and the general population, the current credit crunch is having a significant effect on both the housing market and the livelihood of citizens. Many residents, as well as foreigners, have made good investments on property and can now be considered as having increased their wealth, while those who have make bad decisions and have not timed the market will have to face financial difficulties regarding the cyclical situation within the current property market.

With UK property prices mirroring the fall in the US market, and the continuing effects of the global credit crunch, the debt burden for many consumers is overwhelming, and many are looking to dispose of their properties in an already distressed market. Unfortunately, the bad news for the UK housing market will keep coming, and is unlikely to change for some time to come. Fortunately, there are certain opportunities created in this type of market that can be taken advantage of, without having huge amounts of cash at your disposal. For many people facing the dire consequences of home repos, they really dont have many alternatives in terms of disposing their properties. However, there are options available to these consumers, and many savvy investors are taking advantage of such type of distressed sales. The concept is the sale and rentback of the property, where the current owner sells his property to the investor, with the proviso that it will be immediately rented by the previous owner, namely the concept of rentback. Sale and rentback can be a very effective strategy for such consumers to not lose the house over their head, yet remain in the property. The concept is simple: the current owner can sell and the investors can rentback to the previous owner on an Assured Shorthold Tenancy, whilst the investor also enjoys a lower property purchase price compared to the market value. The pros for the previous owner include not tarnishing their credit record, as well as negating the need to move house. However, you must keep in mind that sometimes the tenant is only provided with a limited tenure tenancy, so you have to be ready if the landlord only provides you two months notice when they want to seek possession of the property.
Facing repossession or eviction as well as facing mortgage payments or other outstanding debt that need to be paid as soon as possible are the main reason for people taking this option. The previous homeowners will be able to survive the critical situation and will also get a bonus benefit, their neighbour or friends will not realise the crisis, and they continue to live in the same house. As we all know, financial problems can be quite problematic and embarrassing and it is the savvy investor that can take advantage of this current market turmoil to make huge profits when the cycle turns. Furthermore, what many people are not aware of is that these properties can actually be purchased with no-money down. Sites such as WealthPillar.com have a wealth of knowledge regarding this option, and can also offer the solution for many seeking to become successful property owners. With such sites, you will learn about the principles of successful property investing and the latest investment models which virtually guarantee 100% property occupancy and no void months. If you have ever wondered how to make motivated sellers contact you, this website will also tell you the three proven systems and processes and help you generate 80% of your property leads.

In real estate investing, the crucial thing in determining if your investment will be successful or not is by identifying early if the property you are assessing has the potential for profit even before you set your foot through the door. Real estate investing has always been the most effective way at creating wealth, and finding no money down purchases from rentback customers can provide the lucrative opportunity you have been waiting for to take advantage of the current UK housing market

Property Investment Vs Property Speculation

Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.

Checklist For Buying Resale Property For A Good Deal

You would certainly not like the idea of waiting for a period of 3 years or even more to buy your own home. In that case, many prefer to go for resale property. Buying resale property has several advantages. Not only you would be able to get a ready made flat to reside but also several other advantages.

The Advantages of Buying Resale Property

You get the opportunity to shift to the house immediately. This would be highly helpful especially when you have to shift to a shelter within a short time.

Many a times, you might be paying huge amount of money as rent and your calculations show that in the long run buying a property would be more economic than continuing to engage huge sums of money as rent. So, to lookout for a home within a short notice, buying resale property is indeed a good idea.

If you are an individual who loves to be located at a prominent position, go for resale property options. You would find as they were built quite early, they are usually located at good locations, at the heart of the city. In contrast, the latest residential developments are usually found in the suburban regions.
Though buying resale property would be advantageous to many respect, but you need to be careful while buying one. Your resale property is old after all and hence, you need to be assured of the fact that the building is still tough and durable.

Important Checklist for Buying Resale Property

Before you enter the flat, engage some professionals to check the plumbing and electrical works. Inspect whether the repair has been properly done or not. Try not to buy a property which is more than 10 years of age.

Your property must definitely be in good shape so that you do not have to spend much on its maintenance.

Check all the legal documents. The title of the property must be the name of the seller. Check whether all the duties and the dues are paid.

Inspect whether the property you are buying has any illegal constructions or not. In that case, you may get in touch of a lawyer or a civil engineer to learn about it.

Avoid buying resale property for investment purpose. If you are purchasing the property to expect huge returns, this won’t be a good business strategy. Purchasing resale flats is worthwhile only if you have plans to shift to the place immediately.

Squatters On Your Philippines Retirement Property And How To Handle Them

Owning land is one of the real pleasures and accomplishments we can enjoy in our adult lives. Knowing that you are the owner of a piece of real property, tangible and solid, is a wonderful feeling. In the Philippines, non-Filipino citizens can not own land. They can own a condo or the house built on the land, but not the land itself. If you have relocated to the Philippines and have married a citizen, then you can enjoy the use of the land but your partner will be the legal owner.

One problem many Filipino land owners face is the incursion of squatters. Itinerant poor people who simply arrive and set up house on someone elses land. If you are a tenant in possession or your Filipino partner is in residence then very often the squatters will go somewhere else and avoid any hassles. The real problems begin when you join the long list of absentee landlords. There is an old saying, use it or lose it and it holds true for the Philippines when it comes to occupancy of land and property. Turn your back for a moment and the place could fill up with squatters, who move in and call your property home.

This could be a major problem if you buy and intend to retire in a few years; by the time you arrive to take possession you have no room to move as every Dong and his dog have built a nipa hut on your land! You could try ordering them off but it wont work! R.A. 7279 is a law that basically protects the squatters from being evicted with nowhere else to go. That is fair enough, they are people like you and me and have families to care for. But it gets worse.

You can be made to pay compensation or to find somewhere else for them to build their huts upon! The onus is on you since as the land owner (via your Filipina spouse or 60% Filipino owned corporation) you have the money and the wealth and they have nothing, hence their status as squatters.

Of course this is open to rort. There are organised criminal gangs who target fallow government land that is earmarked for say, a highway extension. Move in the squatters and then take their cut of the compensation payouts the people receive from the government when it is time to finally build the highway extension. This happened recently in Manila and Cebu with new road projects.

It can happen to you but what can make it worse is that these squatters may decide the simplest solution is if you no longer exist. If there is no you, then there is no problem and no need to move. It happens fairly regularly so once again, be aware of this and always leave your pale Kano face well out of all negotiations! You cant do a better job than a Filipino simply because you are not a Filipino and their values and reasons rarely register with what we consider common sense and logic. Once they suspect there is a foreigner, or Amerikano (hence Kano) involved they will want more simply because they believe all foreigners are rich.

Of course if you do develop a squatter problem, you could always consider the Fifty Peso Solution commonly used by Filipino land owners. Fifty peso will pay for some petrol and a box of matches and even the unemployed local to use them. Most squatter houses are jury built and allergic to petrol and matches. I would never resort to such a solution simply because the risk of the fire getting out of hand and harming someone is too great and besides, squatters are people too, like you and me. Just not so fortunate. All the same, it is not a desirable situation to be forced to share your hard earned property with people whose sanitary habits and collection of domesticated animals might make living in paradise a new kind of hell.

Get Perfect Advice By Professional Property Agents On Faridabad Real Estate

If you are looking for a home or for a commercial space in Faridabad and are wondering how you should go about it, the best solution would be to contact a professional property agent who is conversant with Faridabad real estate. A professional, as the word says it brings a lot of experience to the table and therefore is well aware of what you need even before you let them know of your requirement. A simple meeting or a conversation over a phone with BPTP Faridabad property dealers will help you save a lot of time as they will short list a host of places for you that you may like.
When you deal with BPTP Faridabad property dealers you should know that they will only be able to provide you with the best properties if you give them the right brief. Be sure to give them accurate details of your requirement which include things like location, sq ft area and the budget that you have. With these cues the professional property dealers will be able to find you a property that will perfectly match your requirements without you having to waste time looking at properties that either do not fit within your budget or do not provide enough space.

Professional property dealers like Faridabad property dealers are well versed with the location they are in and know much about the area and the property rates that are prevalent. If you are an outsider and do not have much time to do any research, it becomes important that you spend some time finding good property dealers who can show you some good properties that you might actually buy. Faridabad is an upcoming city and more people are turning their preferences towards it, there is no time better than now to invest in property here.

However, since things are on the upswing, too many people are getting into property dealerships. This is where you have to be careful and you cannot afford to simply trust just anyone with your needs. Time is of essence, therefore focus on finding a property dealer who is truly professional, knows the market well, understands your needs and is working towards not fleecing you but making your life easy by finding a property that is reasonable but is touted for growth so that your money can grow.