Property Management Advice from Sabine Slade

My name is Sabine Slade and I live with my husband in Kawerau. I came to New Zealand 26 years ago from Berlin, Germany. We own a number of investment properties throughout the Bay of Plenty which I manage myself.  A couple of years ago, other investors started to approach me about their properties and I now manage investment properties for others as well.

I find that being a Property Manager takes patience and the ability to deal with many different personality types, which is a challenge I thrive on.

Tips on looking for new tenants

I locate tenants through a mixture of advertising in the local papers and online via Trade Me.

Interested parties fill out an application form that includes a privacy waiver clause so that I can conduct full reference and credit checks. Sometimes searching for a new tenant can be an adventure, I have seen people give false details on the application form about their employment, credit rating or where they live. I often will have a browse on the internet as part of the checks for my clients. Social media sites can be helpful as well as the Tenancy Information New Zealand (T.I.N.Z) database.

From time to time smaller towns can have problems with unemployment and gang related issues, so every person who wants to move into a property I manage, has to fill out an application form, thus eliminating the chance that the well dressed, well-spoken and mannered working mother, gets the house and then has her gang affiliated partner moving in with her.  This may sound onerous, however there are usually fewer people looking to rent in smaller towns compared to the larger cities, so a strict vetting process  is much preferable than dealing with a bad tenant later on.

Given the size of the market I do not charge a letting fee, however I ask a full 4 week bond.  Once a tenant is found, the key word for retention is service.

Effective property management practices

When I ask prospective tenants why they are moving, the response many times was that the landlord is “slack”. The tenants had problems such as a stove or power point not working, or a leaking roof, notified the Landlord and nothing happened.   I try to solve any issues within 24 hours either by organizing tradespeople to visit and quote for the bigger jobs or we simply perform repairs ourselves if it is a smaller issue such as a dripping tap. This not only ensures a very positive tenant / landlord relationship but tenants will make more effort to keep the place well looked after. Saving money is good, but not at the expense of your tenants.

However quite often the tenants do not ring me with problems, so regular 3 monthly inspections are important. They keep me in contact with the tenant and also to keep up with any maintenance or repair issues.

I check the rents when they are due. If a payment is missed, I ring or visit the tenant letting them know that the rent was not paid and find out how they plan on catching up.
99% of the time they catch up when the next rent payment is due. If this does not happen I will give them a 14 day letter to remedy which is then followed by an application to the Tenancy Tribunal. In bigger markets property managers are stricter, however it can pay to show some flexibility to an otherwise very good tenant – at least for the first occurrence.

As a rental property owner it certainly helps if you have some sort of cash cushion. More houses means more liabilities and you should be in the position to replace a large ticket item like hot water cylinder or wood burner / heat pump if anything goes wrong. We experienced it ourselves when we wanted to insulate one of our rentals and the company giving the quote found several leaking spots in the roof, which had to be fixed before they would install the insulation. It could not be repaired and we had to re-roof the house at a cost of $12000 when we wanted to only spend $2500 on insulation.

Lastly I want to touch on maintenance. Often it can be tempting for an investors to let maintenance slide, however with a smaller buyer pool that has choice, properties in good condition will be vacant for shorter periods and attract better quality tenants who will stay longer.

April 16 2019 | Investments and Positive Relationships and Property Management and Tenants | No Comments »

Investment advice and tips

You become an investor  once you put your cash into items that could generate revenue or grow in importance. The typical intention would be to earn at the least an after tax return more than inflation’s pace. Becoming a buyer also requires a degree of chance. Typically, the bigger the bigger the risk, the return.

Shares? Securities? Residence? Term deposits?

Ask yourself these questions when choosing what to spend your money on:

Duration: How long are you wanting to speculate for?

Earnings: would you like revenue or growth?

Liquidity: do you want to be able to truly get your money easily?

Risk: understanding your own personal attitude to risk and Understanding the risk involved in different kinds of expenditure.

You can spend ‘specifically’ through a bank (period remains), share broker (stocks and securities), real estate broker (house) or other agents. Should you commit right in stocks, securities or house, you’ll have to be well informed regarding real estate arena or the sharemarket, and also the enterprise.

You can also devote ‘indirectly’ by way of a managed fund. In a managed account (or device trust), your money is pooled with that of additional shareholders, plus a professional fund manager invests it in a variety of purchases for you.

 

Top tips for investing

Before you step into any investment decision, there are some significant guidelines you must follow:

Set:

Determine what it’s that you will be currently looking to obtain. Where do wish to be at some time in the foreseeable future? What is the last consequence that you want from your investments and what is your schedule? Think of debt – is investing the best alternative for you today? Could you be better off using your cash to pay off high -interest debt (e.g. Charge card, hire purchase), or even to reduce your mortgage?

Recognize your chance report:

You need to know what kind of buyer you’re – essentially, how much cash are you prepared to lose? Just how much volatility (good and the bad) are you able to accept? To work your entrepreneur variety out, use our investment manager.

Discover how you want to devote your money:

What mix of investments fits your buyer kind? Ties, shares, property, bank remains? Do you want to invest right oneself or employ managed finances? Your investment planner can help here.
Research different companies’ expense alternatives: discover which corporations fit your kind, if you’re going to commit immediately in a business. Do they offer the type of assets you are after? What are return for every investment’s premiums? What’s the level of danger linked to the return?
Research the companies themselves: exactly what does the business do? What areas is the firm in? Who’s working the organization? Have they actually been declared bankrupt? How may be the organization work? Does the board have separate owners? Has got the corporation done recently – is there a constant performance with time?

Obtain the correct assistance:

Check around for an Authorised Financial Adviser (AFA) who you have confidence in. Sanctioned Financial Consultants should tell you (in a written disclosure statement) how they are settled and also the impact that could have about the advice they provide you with. Find about receiving investment advice more out.

Do your preparation:

Research, compare anything – or get someone to do this for you. See the enterprise parts of the paper, get online, speak to bank boss, your advisor, or accountant. We suggest in addition you read any files, such as /or prospectus and the expense statement, referring to the investment you’re currently considering.

Distribute your chance:

Don’t placed all your eggs in a single basket Whilst The saying goes. Distribute your risk around various companies and different options. For example, if you should be contemplating high-risk ventures, you are able to balance your threat with different investments in income and securities bank deposits or lower-risk regions.

 

 

April 16 2019 | Generating Income and Investments | No Comments »

Why You Need to Invest For Your future

That it is fairly easy: trading means placing your cash to meet your needs. Basically, it is a diverse method about steps to make money to think. Rising up, the majority of US were trained as you are able to make a living just by operating and obtaining a work. And that is precisely what the majority of US do. There is one large issue with this specific: you’ve to work hours if you like more income. Nevertheless, is a restriction to many hours each day we are able to function, and of course the truth that having a lot of cash isn’t any enjoyment if we-don’t possess the free time to savor it

There are about investing lots of various ways you are able to go. Including placing cash into shares, ties, mutual funds, or property (among a number of other issues), or beginning your personal company. Occasionally folks refer as “investment cars,” that will be yet another method of stating “a method to commit to these choices.” These vehicles each have advantages and disadvantages, which I will examine in a portion of this guide. The purpose is the fact that it generally does not matter which technique for trading your cash you select, the target should be to place your money therefore it makes you one more revenue to function. It is the most significant notion for you really to comprehend despite the fact that this can be a basic concept.

You-can’t produce a copy of you to ultimately raise your working-time, therefore alternatively, you have to deliver an expansion of oneself – your cash – to function. This way, when you are studying the document, and sometimes even cutting your garden, resting, investing in hours for the company or interacting with buddies, you may also be generating revenue elsewhere. Basically, for you enhances your earning potential whether you obtain a producing your cash work, choose to perform overtime or locate a greater -paying work.

Why Bother Trading?

Clearly, everyone needs more income. It is fairly clear to see simply because they wish to improve their individual independence that individuals commit, feeling of capability and protection to pay the issues they need in existence.

Whether you reside within the developed Developed world within the U.S., Europe, or virtually every other nation, authorities are securing their devices. Nearly without exclusion, of planning pension, the duty is moving from their state. There’s much discussion over how secure our old age pension applications is likely to be within the next 50 and 20, 30 years. But why leave opportunity with it? You are able to guarantee monetary balance through your pension by preparing in advance. (For more, observe Retirement Planning tutorial as well as for Canadians the Authorized Retirement Savings Program (RRSP) guide.)

Nevertheless, trading has become more of the requirement. The times when everybody then retired to some nice pension and worked exactly the same work for 30 years are eliminated. For people that are typical, trading isn’t much a device whilst the means that is only they continue maintaining and can retire their lifestyle that is existing.

Just why you need to do it and since you’ve a broad concept of what trading is, it is time for you to find out about investing enables you to take advantage of the wonders of arithmetic of one interest.

What Investing IsN’t

Accurate trading does not occur without some motion in your component. Their cash doesn’t merely toss at any arbitrary expense; he/she works comprehensive evaluation and commits money only if is an acceptable expectation of revenue. Yes, there is still danger, and you will find no guarantees, but trading is not less than merely wishing Lady Luck is in your corner.

Trading isn’t gaming. By betting on an unclear result with the expectation that you could get cash gaming is placing money in danger. Area of the dilemma between gaming and trading, nevertheless, will come in the method investment vehicles are used by many people. For instance, it may be suggested that purchasing a stock-based on the “hot idea” you noticed in the water-cooler is as putting a guess in a casino basically the same.

Albert Einstein called interest ” all time’s best numerical breakthrough “. believe this really is accurate partially because, unlike calculus or the trigonometry you analyzed in senior school, compounding could be put on everyday life.

The question of compounding (often termed “element interest”) changes your working cash right into a condition-of-the-artwork, extremely effective revenue-generating device. Compounding may be the procedure for earnings on the reinvested profits of an asset. To function, it takes a couple of things: the reinvestment of period and profits. The additional time you provide your opportunities, the more you’re ready to increase one’s unique expense, which requires the stress from your revenue potential.

To show, let us take a look at a good example:

Since you reinvested that $600, it works together the initial expense, making $636, that will be $36 significantly more than the prior year to you. This tiny bit extra might seem like nuts today, but let us not overlook that you simply did not need to raise a hand to generate that. Moreover, this also offers the ability to generate interest. Following the next year, your expense is likely to be worth $11,910.16 ($11,236 x 1.06). This time around you gained $674.16, that will be $74.16 more curiosity compared to first-year. This escalation in the total amount created every year is currently compounding for action: attention generating attention on curiosity and so forth. This can proceed so long as you keep making and reinvesting attention.

Should you commit $10,000 nowadays at 6%, you’ll have $10,600 in one single year ($10,000 x 1.06). Now let’s imagine that in the place of withdraw the $600 acquired from curiosity, you maintain it inside for another year. Should you proceed to generate exactly the same price of 6%, your expense may develop to $11,236.00 ($10,600 x 1.06) from the end-of the 2nd year.

Starting Early

Consider two people, I will identify Mike and them Pam. Both Mike and Pam would be the same-age. She spent $ 15 while Pam was 25. For ease, let’s hypothetically say the rate of interest was compounded.

Mike, Pam’s buddy, didn’t begin till he reached age 35 trading. In those days, he spent 000 in the same rate of interest of 5.5% compounded, $15. From the period Mike reaches age 50, he’ll have $33,487.15 ($15,000 x [1.055^15]) in his banking account.

Publisher’s Note: for the time being, I shall need to request you to trust these measurements are appropriate. Within this guide we focus on compounding’s outcomes as opposed to the arithmetic behind it. (should you’d prefer to find out more about the way the figures function, notice Knowledge The Full Time Value Of Cash.)

What happened? Pam gained an overall total of $ 42 and Mike gained just $ 18 giving her expense additional time to develop.

March 27 2019 | Generating Income and Investments | No Comments »

What is Real Estate and Property Development

A lot of people familiar with the real estate market and industry are very well familiar with the term “real estate and property development,” and perhaps can even name a few famous estate and property developers. It would appear that the term itself is very easy to understand, a real estate and property developer simply develops or improves real estate.

In reality, the whole concept of real estate development is of course way more complicated than that. Unlike somebody that purchases a home to fix it up and then resell it, a high-end or large-scale real estate and property developer often deals in millions or perhaps billions of dollars in investment. It is true that a developer may be an individual, but then more likely will be a partnership, Limited Liability Company, or even a corporation.

There are two main categories of real estate and property development activity: land development and building development (otherwise known as project development). Property developers usually purchase land that is unimproved, meaning that it is yet to have connections, roads, any kind of grading, and so forth.

Real estate and property developers then step in and define the “contracts,” which are the context of any future builds and developments on the land. They also gain “entitlements,” which are the legal permissions or permits to go ahead with their development plans. Once these entitlements and contracts are in place, the development of the land can then begin, with the grading of the earth, land leveling, utility connections, and then zoning. Also, roads are planned, built, and paved, whether for the major cities or just the neighborhoods.

As soon as the land is properly developed, the building developers may now step in. These building developers then have buildings, whether offices, private or retail homes, planned and built on the land. The building developers and the land developers obviously need to work very closely, as the building developers plans will have to be accommodated by the land developers.  For instance, the utilities brought in for an office building are obviously different from those for a private home, as are the roads, and everything else.

Some of the real estate and property developers also purchase existing properties or buildings for the purpose of upgrading, rebuilding and remodeling, or otherwise improving whether for sale or to keep them as assets to produce cash flow through rents and other means.

What seems to you like the worst time to get into real estate and property development can, in reality, be the best time. Successful real estate and property developers today realize they can use the time to their advantage. Their real estate and property development projects will normally not be ready for rent or sale for 2 to 4 years from inception. So if they have actually bought well, they are more unlikely to be affected by the economic situation at that time of purchasing their real estate development site.

March 27 2019 | Investments and Property Development | No Comments »

Property Developer’s Guide on How to Increase Productivity and Better Manange Your Time

We have all heard the saying ‘time is money’. How well do you manage your time? If you are not creating the space to work on your investments in your day-to-day life, then the financial return is not going to be so rewarding.

So what are the challenges to managing our time?

Most of us simply don’t have a system to handle the emails and tasks that bombard us daily.

We aren’t prioritizing our workload, meaning often the reactive and non essential stuff takes up a lot of our day; suddenly we look at the clock and we have spent two hours faffing around on a task that we probably shouldn’t have even been doing in the first place.

The ‘non work’ stuff, e.g. like managing your investments doesn’t get done during the day, so you end up looking at it later on, in the evening, and then you are feeling exhausted and resentful about doing anything.

If we don’t keep this in check, we not only end up missing out on great opportunities (e.g. taking the time to see what’s available on Ifind) but we can miss doing some essential stuff too.

So, just how should you manage your to-do-list?

Up until a year ago, I used to simply have a journal, where daily, I wrote down what I had to do, crossed out what I got done through the day, and then recreated a new revised list the following day.

Whilst at some level, it felt like I had a handle on things, I was risking simply forgetting some pretty important stuff. It also was a bit time consuming, particularly when I had a lot on.

The next iteration of managing my to-do list was popping everything on Evernote, which is a cool web-based note app. But there were challenges with syncing between my phone and app and there was no real structure to it.

I finally feel that I have got it nailed…

and now, like an ex-smoker, or someone who had dropped 15 kilos on Paleo, I just want the world to know, because it has seriously changed my life for the better!

Firstly, I engaged a productivity expert (hiring an expert is always a good thing to do when you want to cut through stuff that isn’t working in your life). He got me to approach this conundrum of to do lists as follows:

Find a productivity framework that suits

Choose a productivity platform that suits

Set up your to do list accordingly

This has just made so much sense to me! The productivity framework I chose was Dave Allen’s Get Things Done (or GTD). I know some people who say that there are more sophisticated frameworks available, but for me, this is perfect.

Essentially, all you need to do is;  

Get everything out of your head, and on to a list. This supposedly really helps our stress levels, particularly when we are are awake at night, and worrying about stuff. Just keep thinking of what you need to get done.

Chunk them into an overall pattern that works for you, including projects and tasks. For example, ‘write a book’ is a rather massive (and overwhelming) task. Better to assign it as a project, and then have sub headings like ‘book overview, title name, decide publishing route etc underneath. Dave Allen talks about a ‘someday/maybe’ folder which is really good for those bigger ideas which you come up with, but don’t want to lose sight of.

Think about ‘what is the next action moving forward?’  This just means that you don’t get overwhelmed by the enormity of something, and focus instead on what you need to do next.

Use the two minute rule for small tasks. If sending someone an invite to a meeting (e.g. while they are on the phone with you) is going to take 30 seconds, then don’t spend 20 seconds adding it to your to do list, just get it done!

Schedule non negotiable time for a weekly review. This is brilliant.  You simply look at your plan and think about what you can add, delegate, defer or delay. Last thing on Friday is a cool time to do this because you can kick into the weekend knowing you have things handled!

Once you have done this, (and believe me, it is not that onerous a job, I am thinking two or three hours and SO worth it), then find a productivity app that works for you. Some of the apps available (including on iPhone and Android) are Todoist, Asana and Nozbe. I have chosen Nozbe, and I love it!! It syncs beautifully with my phone and I can keep short term stuff that doesn’t need to be assigned a project to my inbox. There is a wonderful priority system ( you just click on the star for top priority and it shows up in your priority list) and the time scheduling and collaboration elements (I have a virtual assistant in the Philippines I assign tasks to) are super slick.

Does this all sound a bit too hard? Like so much in life, I delayed getting around to implementing a productivity system that works, but seriously, this has just changed my life so much for the better. These apps cost a few dollars a month, but give you so much control over your life, and for ifind subscribers particularly it may result in some fantastic financial gains, simply because you have been able to assign more time to your investment portfolio! Just give it a go!

March 27 2019 | Productivity & Time Management and Tim Manning | No Comments »

Real Estate and Property Development Risks

Real estate and property development risks and their control is the major priority of professional developers, or maybe they never get to get involved in another development. I am continually amazed to find that the first thing most developers do is buy some land or property with some of their own cash and borrow the majority from the bank.

New developers getting control of the property seems logical, and yet it is the last thing a professional does. So starting a real estate and property development by doing the complete opposite to what you ought to do is putting yourself behind the eight ball from the day one and send the ‘risk’ indicator rising.

From a good point of view, a land is only worth what you can utilize it for, and that is determined by the Town Plan of your City and the particular zone applied to the area you are considering. For instance, if you were to buy a land that is zoned Rural and you want to develop some residential houses or townhouses, you won’t be able to do so.

If you purchased some industrial land and your plan was to develop some shopping on it, you won’t be allowed to do so by the Town Plan. Professional real estate and property developers learn the Town Plan, and also all the regulations that control the development activities in certain regions that are of interest to them.

Real estate and property developers don’t pay the lender of development finance every month out of their pocket. The interest is calculated on a monthly basis on the amount which a developer draws down from the lender. The interest is then added to the payback amount required at the end of the development. So by not being educated in the real estate and property development, a new developer is committing to a land without knowing exactly what can be developed on it and then purchases it with the wrong finance package. Putting yourself behind the eight ball twice at the very start of a development process is a terrible way to begin your development life.

Another real estate and property development risks to consider are market knowledge and the lack of a development system blueprint. Looking at the market knowledge, a lot of new developers don’t appreciate that they are actually a manufacturer. For instance, when you buy any product in a shop, it must have many features for it to be purchased and successful. It must be valued right for its target audience; it must be of great value, and it must do the job it is intended for; it has to be designed, and it has to be researched before being designed and many other sub items which make up the profile of any product.

March 26 2019 | Investments and Property Development | No Comments »

Developer helps fund aid to Fiji’s Poor

NZ Herald – Article by Simon Collin
Published on 29 Jan 2007

A property developer who built some of Auckland’s biggest “leaky home” developments, Tim Manning, has agreed to sponsor a local version of Bob Geldof’s Make Poverty History campaign to relieve poverty in Fiji.

Annie Hensby, an Auckland mother who organises comedians, clowns and other performers in schools, collected four tonnes of medical supplies, books and other goods for Fiji through benefit performances last year.

She appealed to the public just before Christmas to cover a $1700 shortfall in the cost of getting the goods to Fiji. A company majority-owned by Mr Manning, Pacific Islands Partnership, then paid for Ms Hensby and her Fiji-born partner, Kavai Velavela, to fly to Fiji to distribute the goods.

They delivered the supplies this month to two schools and to children in seven villages in the Tailevu district of the main island, Viti Levu, and the Wainunu district on Vanua Levu.

They now plan to register “Performers 4 Poverty” as a charitable trust and to work fulltime on organising more benefit performances for Fiji.

“Pacific Islands Partnership is our main sponsor. When they heard about what we are doing they said, ‘We want to get behind you’,” Ms Hensby said.

A minority shareholder, former All Black Eric Rush, said the company was formed a year ago to develop a resort on Viti Levu.

Mr Manning‘s former company, Taradale Holdings, was involved in several projects that have had weathertightness issues, including Sacramento at Botany Downs, Ponsonby Gardens, West End in Grey Lynn and The Grange at Albany.

Last September, he sold the partly completed Whisper Cove housing project at Snells Beach to a Sydney developer for $215 million. Mr Rush said Fiji was now pretty close to the hearts of Mr Manning and his associates and he was not surprised that they were backing Performers 4 Poverty. “They are in a position to do something about it and that’s what they are doing.”

Ms Hensby was horrified by the poverty she saw when she visited Fiji for the wedding of Mr Velavela’s brother last year. She saw children with no shoes, covered with open sores, living in “tin shacks” without power, books or toys.

Schools were “worse than in Victorian times” – long wooden benches with virtually no resources. The school she visited in Wainunu went only to Year 10 because there was no money to go further.

People lacked basic knowledge about health matters such as diet. “We met so many people with very early-onset heart disease. A lot of the women have their legs amputated from diabetes. Everyone is just eating lots of taro,” she said.

She and Mr Velavela provided books for the schools and handed out two books, two toys, clothes and shoes to every child in the two districts.

“Kids were walking away with as much as they could carry,” she said. “The parents were in tears of happiness. The kids were squealing with delight.” Ms Hensby plans to ask local theatres, musical groups and other performers, as well as her school entertainers, to donate the proceeds from one show a year to the charity.

Three shipping companies – Neptune, Reef and Oceanbridge – have offered to ship supplies to Fiji free.

The charity hopes to provide villages in the two Fiji districts with more books and medical supplies, gas cookers, shoes and gumboots, teach the Fijians how to create soak holes to drain mosquito breeding sites, and fund an ambulance and a small power station.

Source:  https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10421411

 

March 26 2019 | Tim Manning | No Comments »

Property development for beginners

Prореrtу development iѕ a fiеld that rеԛuirеѕ a rеаѕоnаblе financial bасking. Anyone with a gооd bаnk balance can venture intо thе field оf real еѕtаtе dеvеlорmеnt. But, of course it’s not that simple. Before you ѕtер intо thе рrореrtу development buѕinеѕѕ, there аrе mаnу things уоu ѕhоuld keep in mind.

Bесоming a rеаl еѕtаtе dеvеlореr is еаѕу – succeeding iѕ nоt! First оf аll, mаkе sure thаt уоu hаvе еnоugh funds tо ѕuрроrt уоur rеаl еѕtаtе рrоjесt, and уоurѕеlf if thе project fаilѕ. In addition to money, it also tаkеѕ ѕtrоng nеrvеs.

Dеvеlорing a рrореrtу саn bе a wоrthwhilе еndеаvоr. You саn dереnd оn it fоr уоur mаin ѕоurсе of inсоmе (аѕ many оthеrѕ do) оr supplement your inсоmе. Thе tаѕk of buуing a рlоt аnd building a house оn it оr buуing аn еxiѕting рrореrtу аnd rеfurbiѕhing it mау арреаr simple. Especially if уоu’rе juѕt bеginning tо immerse yourself in the buѕinеѕѕ оf dеvеlорing properties. Therefore, уоu’ll dо wеll to tаkе ѕеvеrаl роintеrѕ from thе experts. Aѕ a nоviсе tо property development, уоu need to know a numbеr of еѕѕеntiаl things thаt will greatly influence уоur ѕuссеѕѕ in thе fiеld.

Gеtting Ѕtаrtеd In Рrореrtу Dеvеlорmеnt

Prореrtу development саn inсludе thе рrосеѕѕ оf ѕub-dividing lаnd аѕ wеll аѕ rеnоvаting properties for rеѕаlе. The mеthоd can also mеаn tеаring dоwn a рrореrtу and rebuilding it. If уоu wаnt to dеvеlор рrореrtiеѕ for a living, the firѕt crucial thing you nееd tо ѕреnd a lоt оf timе on iѕ dоing уоur hоmеwоrk. Embarking on рrореrtу development nесеѕѕitаtеѕ еduсаting уоurѕеlf, tаlking tо the right реорlе, оbѕеrving what оthеrѕ bеfоrе уоu hаvе done аnd tаking nоtе оf the lосаtiоnѕ where they’re developing properties. It’s also crucial thаt уоu аrе аblе tо dеtеrminе the tуре оf рrореrtу уоu want tо invеѕt in and tо be сеrtаin оf thе mаrkеt уоu’ll bе tаrgеting.

Tо gеt thе mоѕt frоm your invеѕtmеnt, be sure tо buу рrореrtiеѕ bеlоw market value аѕ this technique lеtѕ уоu earn рrоfitѕ fаѕtеr. Yоu can find BMV properties аt auction whеrе уоu саn рiсk them uр at рriсеѕ 30% bеlоw thеir market vаluаtiоn.

Whеrе to develop рrореrtiеѕ

In determining whеrе tо target уоur property dеvеlорmеnt plans, rеѕеаrсh again рlауѕ a vitаl role in thе асhiеvеmеnt of success. Rеmеmbеr tо lооk fоr аn area undergoing a grоwth ѕtаgе, whеrе a рорulаtiоn еxраnѕiоn is bеing еxреriеnсеd аnd a location where rеntаl homes аrе in demand. A good location wоuld be one thаt’ѕ in proximity to learning institutions, ѕhорѕ, аnd рubliс trаnѕроrtаtiоn.

Obtаining Finance For Уоur Рrоjесt

Dереnding on thе endeavor, рrореrtу dеvеlорmеnt finаnсе саn bе taken out as еithеr a rеѕidеntiаl оr commercial lоаn. Each will bе bаѕеd on уоur сirсumѕtаnсеѕ whiсh will thеn dеtеrminе the аmоunt уоu’ll be paying in tеrmѕ of intеrеѕt оn your finance. There аrе ѕеvеrаl fасtоrѕ thаt will bе соnѕidеrеd when dесiding оn the rаtе. Onе iѕ уоur background аnd еxреriеnсе in dеvеlорing properties. The rate will also be based оn the industry ѕесtоr at the time you applied fоr finаnсе and the lоаn proposal you have forwarded tо thе lender. If уоu’rе just ѕtаrting out, bаnkѕ will mоѕt likеlу require a highеr level оf ѕесuritу. Thiѕ mеаnѕ you hаvе tо put more оf уоur оwn funds into thе dеvеlорmеnt.

You саn аlѕо оbtаin 100% property development finаnсе fоr уоur рrоjесt. Thеrе аrе thrее wауѕ to асhiеvе thiѕ. First iѕ by finding a рrореrtу bеlоw mаrkеt vаluе аnd ѕоurсing a lender willing to рrоvidе finance against itѕ rеаl mаrkеt vаluе.

Second iѕ to рrоvidе аdditiоnаl security – whiсh can bе in thе form оf аnоthеr рrореrtу – to lenders whо rеԛuirе it before providing 100% finаnсе.

Thе third is thrоugh gross dеvеlорmеnt lеnding which involves providing a fоrесаѕt for the end ѕаlеѕ vаluе оf уоur рrоjесt аftеr it has completed the build рhаѕе.

Prореrtу development is a venture thаt requires timе, раtiеnсе, rеѕеаrсh аnd thе аbilitу to tаkе саlсulаtеd riѕkѕ – more so if уоu intend to mаkе it уоur main ѕоurсе of rеvеnuе. Aѕ long аѕ you have thoroughly lеаrnеd the inѕ аnd оutѕ of property dеvеlорmеnt, tаking on, thеѕе riѕkѕ саn bе grеаtlу ѕuреrѕеdеd bу the bеnеfitѕ уоu’ll bе еаrning оnсе уоu hаvе bесоmе a ѕuссеѕѕful property dеvеlореr.

February 23 2019 | Financing and Property Development | No Comments »

Mortgage refinancing, is it for you?

Have interest rates changed? Has your credit score improved? Do you feel that you could get a better rate for your mortgage now? Do you just need a different kind of mortgage? These are the questions you need to consider when thinking about refinancing your mortgage. Refinancing a mortgage is generally when you pay off the existing mortgage and get a new one, but it can also involving taking out a second mortgage and combining them into a new loan. There are pros and cons to refinancing, so here are some things to consider when deciding if mortgage refinancing is right for you or not.

Potentially Lower Interest Rates
The interest rate attached to your mortgage determines how much you pay each month. The lower the interest rate, the lower your repayments. When market conditions change, or if your credit score improves, you may be eligible for a lower interest rate. A reduced interest rate could also allow you to build equity in the home faster. Refinancing can potentially lower your interest rates, and even a rate that is just 0.5% lower could add up to a lot of savings.

Adjusting the Mortgage Length
Increasing the length of the mortgage can be done to decrease your monthly payments, but keep in mind it also increases how long it will take to pay off the mortgage and the total amount you pay off due to interest. Decreasing the length of your mortgage is a good idea if you have the ability to pay it off sooner to get out of debt faster and reduce interest payments. This also means paying off more each month however, so keep this in mind.

Switching to a Fixed Rate Mortgage
The monthly repayments of an adjustable-rate mortgage or ARM will change as the interest rate changes. Payments on an ARM could go up as well as down. There may come a point that you aren’t comfortable with the idea that your mortgage repayments could increase. This is when you can consider switching to a fixed-rate mortgage to get the peace of mind that comes with fixed interest rates and repayments. Switching to a fixed-rate mortgage is also a good idea if you feel that interest rates are going to go up.

The Age of the Mortgage
How long you’ve had your mortgage is an important factor to consider. When the mortgage first starts, the majority of your payments are credited to the interest rather than the principal. The longer the mortgage lasts the more the principal is paid off and the better the equity of your home. Refinancing your mortgage restarts the entire process, meaning it isn’t worth it in the later years of a mortgage.

Are You Moving Soon?
If you’re planning on moving soon then you shouldn’t refinance your mortgage, especially if you’ll be moving before the mortgage term is over. You don’t want to be paying off a home that you aren’t living in. There’s also the chance that the savings you make won’t be worth the cost of refinancing, so use a break-even calculator to determine if it is worth refinancing.

Summary
There are several factors involved in determining if refinancing your mortgage is right for you. Think about the kind of mortgage you have, how long you have had it, and if you have any plans of moving or not. Talk to a financial planner to learn more about refinancing your mortgage and if it’s worth it.

February 23 2019 | Mortgage | No Comments »

How to keep your tenants happy

Keeping your tenants happy makes being a landlord a lot less stressful. When the landlord and tenant have a good relationship, issues like late rentals and property damage are kept to a minimum. It takes some work to establish these relationships though. The worst thing you can do is simply ignore a tenant and leave them to their own devices. Here are some tips on how to keep your tenants happy.

Solve Maintenance Issues As Soon as Possible
How quickly a landlord responds to a maintenance issue is an indicator of how much they value the tenant and how they see their relationship with them. Show that you care by addressing the issue quickly and keeping tenants up to date on the progress. It is vital to respond quickly to issues that can affect how much tenants enjoy living in your property. Even if it takes a few days for the repair to take place, tenants are happy knowing the issue was addressed as soon as it was reported. Consider placing a follow-up call to further develop trust.

Regularly Inspect the Property
Regularly inspecting the property is an important step in ensuring the tenant is caring for the property. The rental agreement may set requirements for property inspections, and they could be legally required. These inspections also give tenants a chance to bring any maintenance issues to your attention. Inspecting the property on a regular basis shows the tenant that you care about the property and reinforces the conditions of the agreement between you and the tenant.

Maintain Positive Relationships with Tenants
Maintaining healthy and positive relationship with tenants helps ensure they stay cooperative during their time renting. Listening to their requests and considering them, as well as responding quickly to their concerns and queries, establishes a rapport between the two of you.

You should carefully consider any request to change the conditions of the lease. If you reject their requests then let them know why. There could be clauses in the law or rental agreement about dealing with requests. Establish times for routine maintenance and when any work should be carried out.

Consider Their Needs
If you want to sell the rental property you must consider the tenant’s lease. A change in ownership of a house or unit is stressful for tenants because it makes their future uncertain and could lead to their whole life changing. Give your tenant as much notice as you can that you are planning on selling the property, and help them to determine what they should do next.

Landlords may have the right to regularly raise their rents, so check the agreement to see what your rights are. Tenants aren’t happy about paying more rent, but it could be necessary to increase the rent in order to keep up with the costs of maintaining the property. If you are going to raise the rent, then once again you must let tenants know in advance. If tenants understand that a rent increase is coming – and the reasons for it – they may be more inclined to stick with you.

Conclusion
Keeping your tenants happy is about being realistic. Even a careful tenant could damage a property as accidents happen. Establish a rapport with your tenants and take care of them to keep them happy.

February 23 2019 | Inspections and Positive Relationships and Property Management and Tenants | No Comments »

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