Archive for the ‘Buy Property’ Category
Depression in the real estate market prices provides an ideal opportunity to people who are planning to invest in a secondary home and use it as a rental property. A rental property generates monthly rentals for you. Economic crisis and slowdown is providing the investors with real good bargains in the residential property space. Follow the tips given below while choosing to buy a property to put in on rent.
1. Most Property and real estate management firms would provide you ready information regarding the occupancy levels for rental properties. Once you are convinced that it is an opportune time to become a landlord since the rental market is on an upswing, don’t think too hard and join the bandwagon.
2. Applying for a pre-qualification would help you determine how much loan the mortgage institute is ready to provide you. Do a working of the resources available with yourself to arrive at the budget of your proposed property investment.
3. Once you have frozen the budget, seek the help of a realtor a real estate agent who can help you identify a suitable property from a location point of view in an area in which tenancy is in great demand. It would help you to read classified looking out for rental properties. It would get you a general idea of what prospective tenants look out for while looking out for properties.
4. Spend a lot of time in screening potential tenants and invite the right people based on criteria that you define. Design the questionnaire that you would administer to the potential tenants during the face to face interview. The process of selection of a tenant is a scientific exercise and an important one to avoid any litigation later.
5. Ensure the property that you buy for renting has a good curb appeal. Unless the curb is beautiful, not many people would be attracted to check the interiors.
6. Ensure that all the fixtures in your apartment are working fine. Almost all tenants would like to undertake a physical inspection of the property they would like to live in. Pay attention to cleanliness of your development.
7. Make use of all the tax concessions available to you for buying a secondary home and making use of it as a rental property. Tax concessions are much higher in case you avail of a mortgage loan.
8. It is advisable to be aware of all the rental laws associated to the state in which you propose to rent.
9. Utilize the services of a professional attorney who would do the necessary documentation as a specialist in rental agreements.
Summarizing the important points, remember the key to get into real estate investment and start generating monthly rental income for yourself is to do your homework well, plan your investment, spend time in selection of the tenant, draft a detailed agreement with the help of a professional attorney and above all enjoy those finer moments in life with the wealth you create for yourself.
NRI’s guide to buying property in India
Buying a property undeniably ranks as one of the greatest Indian dreams. So it does not matter which part of the world you live in; a home in India is simply a must. And the Indian laws, over the years, have made this a fairly easy job. The Reserve Bank of India governs such transactions and they fall under the purview of the Foreign Exchange Management Act (FEMA).
In this column, we give you a lowdown on all that you need to know if you are an NRI wanting to buy a property in India. To begin with, we need to understand the definition of non-resident Indian. Since property purchases are governed by FEMA, we need to go by the definition of NRI as stated in FEMA. According to FEMA, an NRI is a citizen of India who is resident outside India.
Now let us understand the rules and implications:
Can an NRI buy property in India?
Yes, a non-resident Indian can buy either a residential property or a commercial property in India. Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.
Exception: An NRI however cannot buy agricultural land, plantation land or a farm house in India. He cannot even acquire such property as a gift.
There is however, no bar on inheriting such property.
Do you need RBI permission?
No. RBI permission is not required to buy residential or commercial property.
How to fund the purchase?
Payment for the purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the NRE, NRO or FCNR Account.
What income taxes are applicable on house properties in India?
According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one house property, only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property. The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given the second property on rent, you will have to calculate deemed rental income on the second property (based on certain valuations prescribed by the income tax rules) and pay the tax thereof.
Now, the Income Tax Act does not specify if either or both these properties must be situated only in India. Vikas Vasal, Executive Director of KPMG India explains, “At the time of drafting the Income Tax Act, one did not envisage a situation where an Indian would own properties overseas. But now, more and more Indians are settling abroad. So from the reading of the Act, the rule of ‘more than one property’ will apply to global properties.”
What this means is that if you are an NRI and own only one property globally and that property is in India, you would not have to pay any income tax on it in India.
However, let us say you are an NRI resident in USA. You own and live in a house in USA. You also own a house property in India. Even if you do not give the property in India on rent, you would have to pay income tax on deemed rent in India. The deemed rent is determined by certain valuation rules prescribed in the Income Tax Act.
Remember that even if you have inherited a property in India and that is not your only property, you would have to pay tax on deemed income.
In any case the following check list must be a matter of consideration while buying properties. There is a huge profit in Real-estate properties buying and selling properties is big business with huge returns if done right. We’ll look at the advantages and drawbacks of buying properties at different stages in the process so that you can make an educated decision.
If you don’t have the iron constitution for buying properties and flipping them, but agree that real estate is the best investment around, rental properties are likely the way to go. Many developers hide the real cost of buying properties and they also demand a higher reservation fee which is non-refundable. From people offering solutions through making millions by buying properties or others pushing you to buy a business and make your money that way.
These brand new, exclusive apartments cost an average of ?15,000 upwards with property investment experts predicting these apartments to gain the same profitable margins of the inland property prices by next year of at least ?45,000 by the end of 2007, but without all the hassle of buying properties and modernizing them. Those who are buying and investing want to see Montenegro develop to become a sophisticated tourism destination and they are not in any hurry nor do they want to see the nation exploited, therefore those buying properties today should consider their investment a long term one. If you want to save money by paying a lower rate of interest, are buying properties when interest rates are high, are sure of purchasing the property you want, are confident of refinance options when the balloon is due, or have no other choice, select a balloon mortgage loan.
This applies to buying properties, where it’s important to remain selective and not just buy anything because you can. You can take advantage of good opportunities such as buying properties or wiping out credit card debts by selling your cash flow notes. This is why Land Investment Market has increased; People are sick and tired of the tricks Realtors play, and decided to start buying properties on their own.
Well, buying properties “subject to” is not that complicated and there”s really no science to it at all. Sometimes a lending institution will also include title insurance, which helps to remove most of the risk involved with buying properties in foreclosure. Basically meant for buying properties, you can use the secured bridging loan UK for satisfying any of your personal needs including debt consolidation, bearing emergency expenses on medical illness or on wedding of children, holidaying purpose or buying a car or boat or any other reason.
You can also look at your yellow pages, and search for the investors who are selling and buying properties, take time to call them and ask about their experiences, do not be ashamed to talk to them, you do not have to worry because they will definitely answer your call and be happy to share their experiences, you can learn through their experiences. Some people also saw it as an opportunity to ride the wave by buying properties, renovating them, and selling them shortly after. Buying properties to rent is a great way to make a steady income as long as you are willing to be liable for the premises and willing to be on call for the residents should a problem with the facilities arise.
Most investors have a “formula” for buying properties – develop, borrow, or steal one. What this can mean for you is a huge real estate investing opportunity: buying properties that are in preforeclosure. They can be20a used for debt consolidation, making large purchases, funding the education of children, buying properties such as a new home, car, or can be even used for commercial purpose as well like opening new business or expanding new business.
There are several ways that you can save money on the purchase price of a property including: buying from foreclosure auctions, buying properties from government auctions, buying distressed properties, and buying from “motivated sellers.