Phil Hartog, Real Estate Investment Ideas

Author: Jacqui Smith
It is a common scenario worldwide that any property bought by an individual as a long term investment always appreciates in value. The Australian property market is no exception with a recent survey noting that in Australia investors have made remarkable gains on property investments.
According to the survey, in Australia over 90% of property investors surf the net to find the right investment property. Investment in property is usually considered by buyers after the purchase of the primary family home, thereby gradually growing the investor’s property portfolio. This second property can then be used to make money from rental or resale profits. Investing in property is a long term venture.
When it comes to dealing in property, buyers are initially looking at the location and condition of property on the market. Then financial considerations must be made, weighing up the value for money in potential investments. When a buyer is properly informed in matters of location and costs they are then able to make better choices in selecting property, thereby securing better gains whether buying in Australia or overseas. For all these matters one needs expert advice and real-estate websites provide a great resource for those looking to buy property. These sites allow one to make property searches free of charge, offering the best deals with proper guidance and at the best rates.
Today, GDP growth, budget surplus and reduced unemployment rates hint at better times ahead for the property market in Australia. Under the current circumstances, demand for property has outstripped the supply consequently pushing up the rental rates. This provides a “best of both worlds” situation for shrewd investors. With rising interest rates, developers are now offering buyers cash funds and attractive rates, and those who have surplus funds for disposal get better deals.
In such a situation first time buyers keep a low profile while the more experienced buyer always taps the right source to make a better proposition. Developers take the current situation into account in their costing. Bulk buyers stand to gain as they have better bargaining powers. Rising demand for rental housing has provided boon to cash rich investors. This situation has proved the recent survey by The Housing Industry Association in Australia which predicted a fall in property rates.
Permanent residents of Australia are free to buy any property, but foreign nationals require permission from the Australian Government before making any investment in property. When buying property with borrowed funds, a 10% deposit of the total loan value is needed. Transaction cost is around 5%, this includes stamp duty, insurance of property, legal and other fees.
As Australia is the fourth largest pension market of the world, investment in property is more accessible for potential investors. It is still possible to make good returns if buying in the more expensive capital cities in Australia. Popular cities for property investment in Australia are Sydney, Perth, Melbourne, Brisbane and Adelaide. As majority of the population lives near ports and costal areas, these locations will always have short supply of property and rates will keep mounting whether the property market slows down or not. When coastal areas fail to meet the demand, nearby areas will catch the attention of investors and in turn these outer city regions will fetch good returns. Consequently the decentralization of residential areas will occur providing more opportunities to investors. Further development of infrastructure with rail and road links will also encourage the growth of these new property markets.
Governments may consider tax and stamp duty concessions and cheaper finance so that the centralization of the property market can be prevented. According to recent reports, the Australian Government is considering changes to the rules associated with the related costs of property investment.
Therefore it is important for any real-estate website to highlight such opportunities, thereby providing better options for people thinking about value for money. Such sites should also include the details of financial institutions, interest rates, property tax information and hints about where to buy. It is also necessary to highlight the infrastructural development that is taking place in and around the chosen locations.
While giving such information these websites also provide a guide as to how to comply with the final formalities and what documentation is required when buying property. So it becomes very easy for an investor proposing to buy a property to get all the important information at their disposal.

Author: Chris Parks
It is important for Real Estate Investors to have an understanding of some of the basics of real estate so you can be a more-informed investor.

In real estate, there are two categories of property, real and personal. Real property is defined as the land and whatever is attached to it, known as improvements. Personal property is everything that is not attached to land or buildings. This is often known as chattel.

A fixture is an item of personal property that has been converted to real property by permanently attaching it. Two examples include chandeliers and cabinets. When they were at the store, they were personal property. Once they are attached to the property, they become real property.

A listing agreement and an agreement of sale specify what is considered as a fixture. If you are purchasing a property, you should carefully inspect this clause to see what you are getting and what you are not getting.

When you purchase real property, you get what are known as a “bundle of rights”. These are the rights of ownership. They include the right to occupy, to use, to allow others to use, to rent, to restrict, to construct buildings, to keep others off, to leave and abandon, to convey ownership and to encumber.

A freehold estate refers to an ownership interest in property for an undetermined period of time. It is a form of ownership that you get when you purchase a property. There are various types of freehold estates, with the most preferred type being called fee simple. It is the highest and most complete form of ownership possible. It gives you the full bundle of rights, including the right to pass your ownership interest on to your heirs when you die.

There are different forms of taking ownership to a property, and it is a good idea to understand each one and what it means. They are severalty, tenancy by the entirety, joint tenancy and tenancy in common.

Ownership of real property can also be held in a trust. A trust is a legal instrument that is used to protect family ownership interests. A trust has three parties, a trustor, a trustee and a beneficiary. The trustor conveys ownership of the property into the trust, which is then held by the trustee. Based on some event according to the terms of the trust the property is eventually conveyed to the beneficiary.

Title is the right of ownership of property. There are five basic kinds of title - naked possession, color of title, right of possession, good title and complete good title. The purchase of title insurance will insure a “good” title. A title company, or abstract company, will do a complete title search to discover if there are any “clouds on the title”.

A deed is a written document that conveys title of real property to an owner. The person who gives or grants the deed is called the granter. The person who receives the deed is the grantee.

There is a difference between title and deed. Title is the right of ownership of property. A deed is a written document that conveys title to the property. Title is a right. A deed is a document. The two most basic types of deeds are the quitclaim deed and the warranty deed.

A general warranty deed provides a guarantee of good title not only by the seller, but back through the chain of title through all the previous owners of the property. It provides the strongest title protection to the grantee, or buyer.

It is important that every Real Estate Owner and Investor understands these basic principles before purchasing Real Estate.

Author: Gregory Akerman
So you’ve heard about the housing slump. And you’ve read about the mortgage crisis. However, in today’s buyers market, Land Investment is the key to your financial freedom. No mortgage is needed; No huge sums of money need be spent. Investing in land in growing areas may just be the key to your financial success.

Now, even through the Real Estate market went down, historically it has been show to have its ups and downs, just like any other market. A few years ago it was a sellers market, now it’s a buyers market. This means if you have money to invest, you can get a great piece of land for a low cost. If you just wait a few years, the investment will have more than paid for itself and you will have nicely profited. It’s very simple; the market will switch from buyer dominated to seller dominated, and you want to be the seller when it switches.

How many times have you talked to somebody who wishes they bought land 10 or 20 years ago because they knew somebody who profited hugely on it? You know how the conversation goes, “I wish I bought 10 acres up north 20 years ago for only $10,000, now it sells for over $100,000. Well, now you can be the person who profits.

Historically, owning land has always been an extremely important priority for groups of people. Ever since people started farming, thousands and thousands of years ago, land ownership was a key issues; People fought over it, negotiated over it, worked on it, and lived on it. Now you can own a piece of the American dream; no fighting involved. You have the right to buy land, at an agreed upon price between you, the buyer, and the seller. This right was won by previous generations of people; It was simply not given to us. And now you can take advantage of the real estate slump, get land at a discounted price, and profit when the market goes up again!