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 Maintenance and Positive Relationships and Tenants | No Comments »

How to Invest in Property With Confidence

Investing in property is one of the largest investments you will ever make, which is why you want to ensure that you make a good choice. You need to know that your money is being spent wisely. You wouldn’t want to invest hundreds of thousands of dollars in a property that sits unoccupied and drains money. Here are some steps to ensure you invest in property with confidence.

Consider the Neighborhood

Whether you stand to make money from your rental property or not depends on the quality of the neighborhood. A property in a bad neighborhood is unlikely to be rented out. If you aren’t working with a broker and aren’t able to actually visit the neighborhood yourself, then do a little bit of online research to find out more about the area. You may find that a neighborhood that leaves a bad first impression is a great choice, especially if the area is improving. Good tenants are not attracted to properties in declining neighborhoods, and they may even be vandalized. Consider the crime statistics for the neighborhood, as well as the condition of the neighborhood itself.

Are there Any Attractions, Schools, and Employers Nearby?

Thinking about this question and answering it will give you a good idea of what occupation your future tenants will have and the kind of lifestyle you can expect them to live. If the area has some high-paying employers, you may be able to get more rent for your property. The same applies if there are good schools in the area. Attractions such as shops and recreational activities also make a home more desirable to potential tenants.

Environmental Factors

If you’re investing in property in an area that’s known for flooding and other kinds of disasters, then you’re going to have trouble renting it out. If all of your money is spent on repairing the property damage, then you don’t have a profitable rental property.

Think about the Condition of the Property

You might choose a property that needs a little work done to it. If you do this, then you should be prepared for a vacancy period until the property has been fixed up and is ready to be rented out. Keep in mind different kinds of properties in different areas attract tenants that may have their own definition of what being “rent ready” means. Some properties that are in otherwise good condition might need to be updated to be profitable for the area they are in.

Consider Property Taxes

Don’t forget to take a look at the property taxes in the area, including if they are on the rise. If they are rising, this could quickly become a financial burden. This is an important and often overlooked step.

Summary

Don’t forget that the best way to keep your rental property protected and profitable is through high quality property management. Consider getting a great property manager with plenty of expertise in the business. Carefully consider the above factors when choosing a property and invest in confidence knowing you’re choosing a great property in a great neighborhood.

 

January 06 2019 | Investments | No Comments »

Generating income through real estate and property develoopment

When you think about it, you realize the great amount of work and the obvious risk that is involved in real estate and property development. Additionally, Estates or homes cost a lot of money to purchase and develop, and can sometimes be difficult to sell. Due to the high expenses and challenging sales, and also because the return on investment takes some time, this explains the risk in the ownership and development.

Why then do you choose this as an occupation?  One thing to have in mind is that most real estate development projects are financed with debt leverage, to be precise, with borrowed funds, the earnings of which are assumed to earn a higher rate of return than the cost of interest. Using debt leverage rather than personal investment cuts the risk tremendously.

And obviously, for most, the real question is how one gets wealthy from home developments if the work is hard and the risk is so high.

The answer, of course, is complicated, and indeed, nothing is guaranteed. Many of the developers have lost as much as they have also gained, and the market fluctuates significantly. However, those who are smart about their developments and investment are the successful ones. After all, the whole point of real estate and property development is much like stock trading as you want to sell the product for more than you did pay for it.

Having a proper understanding of what makes real estate valued is essential. Make a right decision as to the location, upgrades, and the likes, and you are sure to make money. Make wrong decisions, and you sure will lose money.

To get wealthy then, it pays to do your homework as they say. Purchasing buildings or land on the low end is good, but then just because something is affordable doesn’t mean it’s actually going to turn a profit once developed. There may be a reason why certain buildings are up for sale, or why certain areas are undeveloped.

When people start to invest in commercial real estate, they start small. They may secure a single family house, a duplex or maybe even a small apartment building. To keep the commercial investment game going; you have to keep moving property. Actually, if you do not grow, you will eventually discover that your bank can no longer assist you because you have maxed out your investment portfolio. Taking too long to grow can be a death sentence in the game.

Getting wealthy from real estate and property development requires some effort and skill to stay ahead of the game, and the ability to organize all the needed steps.

However, with a bit of work, it can pay off. Real estate development has long proven to be one of the most lucrative areas of business that’s around (if you have the patience to play the game right)

December 16 2018 | Generating Income and Property Development | No Comments »

How to Save for Your First Home Loan Deposit

If you want to get yourself a little slice of the real estate market and have a place you can really call home, a place you can decorate as and when you see fit, then you’ll have to start saving. There are some grants you can get to help, but you’ll need a lot of money to serve as your 10% deposit. Here are some tips on how to save for your first home loan deposit.

 

Save 10% of your Paycheck

This is one of the oldest tips in the book, but it’s stood the test of time because it works. Adopt a mentality of paying yourself before paying anyone else. A good way to help with this is to open a separate savings account with a different bank so that you have more trouble accessing the money. Then take 10% of each paycheck and put it through into this new account. You may need to miss out on a few luxuries but you’ll save a lot of money and it will all be worth it.

 

Sell your Unwanted Stuff Through eBay

Sites like eBay offer the perfect place to get rid of all your unwanted things and get your hands on some money. Whether you’re selling your old curtains, the music you don’t listen to, or your old clothes, you can generate a lot of money from eBay in a short amount of time. How much you make depends on what you sell of course, but you could be looking at hundreds, if not thousands of dollars.

 

Pay Off Your Debts

Paying your debts isn’t a savings tip in the classic sense of the word, but it does help you save money because there’s no interest payments. There are two reasons you should pay off your debts; it increases how much money you are able to borrow, and it gives you more money to pay off your mortgage payments. Start budgeting now to get rid of your personal loans and credit card debts before getting a mortgage that leaves you with hundreds of thousands to pay off.

 

Get Rid of Luxuries

While it’s not fun to tighten the purse strings, it is an effective way to save money. Get rid of the luxuries, or downgrade them when you can, and put the extra money in your savings. You don’t need to get rid of absolutely everything though. Slowly get rid of one luxury a month and pocket those savings. By the end of a year you could have saved thousands.

 

Get a Part Time Job

If you’re really serious about saving for a home deposit and you can’t stretch your budget any further, then you may want to consider part time work. Working a few evenings a week could grab you a lot of extra money in your account. Babysitting, tutoring students, teaching English, or doing some freelance work are solid examples of what you could do.

 

There’s never been a better time to take out a mortgage thanks to all the great rates on offer. Be sure to compare rates from different lenders before making a choice.

 

December 01 2018 | Saving Tips and Techniques and Tim Manning | No Comments »

How to Choose a Property Manager

Choosing a property manager is an important process because you are trusting someone else to take care of what may be the largest investment you’ll ever make. That’s why you need be confident that they can handle the job properly. Of course, they must be dependable and trustworthy. Here are some other things to consider to help you understand how to choose a property manager.

Communication
With all the people involved, such as the owner, the tenants, and the manager, communication is key. Some owners like to receive regular updates while others are happy with a select few. No matter how much communication you desire, it’s important you get high-quality communication. Your property manager needs to be available and respond readily. Think about their speed, courtesy, and availability as soon as you make the first contact with a potential manager.

Residents
The property manager has two key duties as far as renters are concerned; finding high-quality residents and ensuring they are treated well. A happy renter will stay around for longer and be more reasonable if something goes wrong. Whereas bad tenants are some of the most expensive mistakes you can make. It can be costly to evict someone, especially if you have to miss out on a lot of rent, and it can also be expensive to repair and clean up the damage left behind. The property manager must be willing to perform background checks on tenants and choose good ones.

Fees
Property management fees are generally fairly standard – typically coming in at between 7 and 15% of a months’ rent. 10% is considered the standard. Sometimes you could be paying less for a condo than a house because the home and yard are smaller. The owner is the one footing the bill for maintenance costs and often has to pay a finder or leasing fee, which could be worth a full month of rent when new residents move in. Find out if you’re going to be charged, even in the event the unit is empty. Some managers will sometimes charge additional fees, so find out how much you can expect to be paying before hiring a property manager.

House Visits
Your property manager should be proactive about inspecting your property, inspecting it at least once or twice a year to ensure everything runs smoothly. These are time-consuming tasks so a property manager needs to have a reasonable caseload. Hiring one that is managing too many properties removes the personal touch. Find one that has the time to give your property the attention it needs.

Earning Potential
Property managers need to get the absolute most out of your property. This involves properly marketing the unit to reduce vacancies. This can involve posting the property on rental websites and taking great photos to show it off. Property managers must also keep up with market rent rates and adjust rents accordingly. You wouldn’t want to be charging too little and not earning what you should for the property.

October 08 2017 | Uncategorized | No Comments »

THE SECRETS TO BECOMING A REAL ESTATE AND PROPERTY DEVELOPER

You might have heard a few people say they really want to become a successful Real Estate and property developer but are not sure if they have what it takes. So here’s some info that might be of help in letting you achieve your aim of being a real estate developer.

Lots of studies have concluded that each one of us has a wealth plan. From our earliest moments, our opinions towards money are accustomed by the sources around us like our friends, relatives, teachers, classmates, parents and the media. This programming in due course influences the accumulation of our wealth.

We discovered that part of creating a ‘Developer’s Mindset’ means that we need first to remove any obstructions that could prevent us from achieving our true potential. These obstructions can be physical (maybe a real injury), emotional (being rejected or judged), mental (not having the language skills) or spiritual (taking some teachings to their limit). Whatever type it is, these obstructions can be like a big rock in front of you that hinder your forward progress.

Many people have tried Real Estate and Property Development in the past though not all of them have been successful. Some have failed miserably just because they didn’t have the right mindset to start with. This step shouldn’t be overlooked as getting our mindset right is the underlying fundamental important element to our success.

Jim Rohn, a renowned American business philosopher, once said that the most important part of becoming a millionaire is that person that you have to become to accumulate millions in the first place. Likewise, many financial advisors will say that the first million is extremely difficult to obtain, but the second million is almost certain.

You will have to develop a different mindset and also different habits from the average person if you wish to become a successful real estate and property developer. By becoming this kind of individual, you also become the kind of person who can now earn the second and also the third million. If you happen to lose all of your money, you would be able to recover it all back again because you have become that kind of person who can now make a million. Fundamentally, by adopting the habits of the Rich and also the mindset of successful real estate and property developers, you can also become one.
Remember that your success lies in your mindset. It all begins with the quality of your thoughts. If you have negative thoughts, you will have negative results, and if you have positive thoughts, you will have positive results. You must first believe that you have the ability to create productive and profitable developments before it can happen.

July 14 2017 | Uncategorized | No Comments »

Timothy Manning linked to Fiji Casino Development in National Business Review NZ

Extract from NBR Article:

” ‘Manning syndicate backs Fiji casinos’

David Williams

Auckland Property Developer Tim Manning is leading an Asian syndicate backing Fiji’s ambitious $US200 million casino project.

NBR first linked Mr Manning and Singapore based Nico-Franken, to the project in June. Mr Manning confirms the deal this week, which sees his company HGW International take a 50% stake in the casino developer One Hundred Sands and Mr Manning and Norwich Properties general manager Brad Worthington join the board.

The Casino Project involves two sites – near Nadi and Suva – with the former site featuring 250 slot machines, 40 tables, a 1500 seat convention centre, a Hotel with up to 600 rooms, bars and restaurants.

A development site near Denarau Island should be confirmed next month. “We’ll be building in the first quarter of next year quite easily.” he says.

Mr Manning will not say where his syndicate investors are based, or how many there are, and is coy about his own financial involvement in the project.

He’s confident a deal can be struck with Fiji’s government over $US100,000 monthly penalty payments.”

 

For the full article go to: http://www.nbr.co.nz/article/manning-syndicate-backs-fiji-casinos-149946

December 26 2013 | Uncategorized | No Comments »

Swiss-Belhotel sign Queenstown property

By Emma Gardiner on August 21, 2013

Swiss-Belhotel is set to make its entry into New Zealand with the signing of a resort outside Queenstown.

Swiss-Belhotel International Chairman, President and owner, Gavin Faull, a New Zealander by birth, said he is proud to bring the rapidly growing brand ‘home’.

“Swiss-Belresort Coronet Peak Queenstown is the closest resort to the Coronet Peak ski field and this lends an exclusivity that is perfect for well-heeled international travellers and aspiring skiers and snowboarders,” Faull told HM.

Swiss-Belhotel International is doing a full rebrand of the property and planning to raise its rating to four stars. This will include the introduction of additional conference and meeting space and outdoor hot tubs as well as upgrades to leisure facilities including spa and sauna, petanque, volleyball, croquet, badminton, ski waxing and drying rooms as well as Queenstown’s only ten pin bowling alley.

The resort’s location provides easy access to the Onsen Hot Pools – a natural geothermal hot tub connected to the Shotover River which itself offers an extensive range of water sport activities.

The launch of Swiss-Belresort Coronet Peak Queenstown brings the Hong Kong-based group’s portfolio to more than 120 hotels, resorts and projects ranging from 2-star to 5-star classifications across Asia, the Pacific, China and the Middle East.

Online article at:  http://www.hotelmanagement.com.au/2013/08/21/swiss-belhotel-sign-queenstown-property/

August 30 2013 | Property Development | No Comments »

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