All posts by David Bell

19Nov/16

Risks of investing in real estate. Be very careful before investing your hard earned money

With the booming real estate market, every second person wants to make investments in real estate. To many, this market seems to glorifying. They assume it to be a win-win investment where all they need is to pay and then enjoy good returns when they want to liquidize their assets. The real estate market is not as simple and beautiful as it seems. With so many advantages, there comes a complete package full of disadvantages. There are many things to consider before jumping into this market. Only an investment that has been made wisely promises good returns.

Post is sponsored by Mirabella Condos

Disadvantages of real estate investment:

  1. Finding finances:

The major task after a real estate investor finalizes the deal for buying the property is finding a good company for financing. The lending institutions do not lend their money very easily to everybody. Usually they ask for a down payment of 20%. Although there are lending institutions available that pass the loans generously but, finding finances for investment is not at all an easy task. It needs an input of lot of time and efforts. Even if you end up getting your finances approved, you need to be very careful regarding the policy and contract you sign. There might be some catches which you may not be able to see.

2. Debt:

Usually investors do not have solid cash at hand to make an upright payment for the property. After a down payment, they turn up to financers for loan. This is a form of debt. If the investor is buying for flipping purposes, and the property doesn’t sell right away, the investor gets stuck with the monthly payment and the property also hangs in the mid way until he gets it sold for a good price. If he thinks of putting up the property for rentals, there is always the chances the tenant might stop paying the rent. Then, he might have to go to the court and get the tenant removed from his property. Until he finds a good tenant, he is stuck with paying the debt money and a vacant property.

3. Additional expenses:

Investing in a property that has to be put up for rentals requires many additional expenses from time to time. The place has to be kept in immaculate condition to attract tenants. All the additional maintenance charges have to be paid by the owner. In addition to this, heavy fines might be slapped if the place is not kept up to the mark.

Here are other risks. please check this video. Have a safe investing.

12Oct/16

Basics of real estate investment in Canada

If you are planning to invest in real estate market in Toronto, and wish to make money, you need to know some of the basics of this market. People have been making money by buying, renting, flipping and selling properties in Toronto. Below are the basics of financing one need to be aware of before jumping into the real estate market. You can also buy preconstruction projects with great vaule like M City Condominiums By Rogers Real Estate, A big company launching project of over 1.5 Billion Dollors.

Financing

This is a very tricky matter in the Canadian real estate market. if you are aiming to get a mortgage for second property, it won’t be as easy as it might have been for your first house. You will be required to make atleast 20% of the price as a down payment and only a small chunk of the income you expect to receive from rent will be considered eligible for the repayment of the mortgage. This gets even tougher for commercial properties. A down payment of 50 percent of the total cost is required.

Taxation

It is very important you talk to a well knowing person in understanding the taxation rules for real estate in Canada. If you have purchased a property for investment purposes, the rent earned by that property is considered as income and is liable for taxation. If your property faces any value increases from the time purchased it to the time you sell it, these increases will be subjected to capital gains taxes.

Timing

It is important to know that investing in real estate property requires patience and time for fruitful returns. If you want quick results and good profits in short time period, real estate is not your area. A property needs time to have a good increase in its value.

How to make money

There are three ways to make money in Canadian real estate market.

  1. Cash flow. This refers to what you spend and what you get. You invest in a property and then give it on rent. You still have to bear the maintenance and mortgage costs. If your rent is more than your expenditure, you can earn easy money on monthly basis.
  2. Appreciation. This means the positive difference in buying and selling cost of the property. Imagine you bought a house for $20000 and after years got to sell it for $40000. This difference of $20000 is the appreciation.
  3. Equity. When you buy a property and get the tenant to pay for your mortgage, you are building equity for yourself. Imagine you buy a property for 400000 dollars with down payment for 80000 dollars and rent t for mortgage for 25 years. After 25 years you will have a mortgage free property and equity of 370000 dollars.

Please checkout our video by network in Ontario investing in Canada.

 

26Aug/16

Best options to start real estate development

Financial situation by Mirvish gehry condo

Don’t consider your financial situation as a hindrance to your investment. It can be one factor, but if the time is right to make an investment and the market is growing rapidly then you should do it immediately to make some handsome income because the right opportunity comes only with a single moment in life.

Economy showed a tremendous growth

If with the announcement of some fine projects in real estate market by the government showed an increment in the growth of the real estate then this is the peak time to make any purchase in this sector. It can be your demographic trend or whole country’s trend.

Interest rates are good

There are many ways to predict the right time of investment in real estate market but the best way to make a growth is by looking at the current interest rates in real estate market investment.

There are many best ways to do it but the important message here is to do something and act quickly at the right time.

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20Aug/16

Making Money in Real Estate without a hard investment

Everybody needs money to support their family life, to fulfill their basic needs, to support their professional life or live life the way they want to be.

Making money with any proper business today is being very crucial and competitive in nature. If we talk about the real estate market, then is the market where you can make some handsome money in a very short time. But there are some facts and figures that one should understand to make money in this market. If you learn & execute them then you can make handsome money in a very short period of time.

The wholesaling strategy

With this strategy, you can generate a couple of thousand dollars without even investing in any kind of deals or buying a real estate property. You don’t need any money to make this handsome money. The wholesale strategy is nothing but a method of making an offer with a piece of real estate and then getting that offer to be accepted. For making an offer on real estate, who have to look for the realtor or sellers who don’t really listed their homes with a realtor in the market.

There can be so many properties for the sale; the only thing you have to learn is how to find the best property to make offers on it. It is the very first step to becoming a real estate investor. It is the easiest step for both advanced and beginners.

The retailing strategy

With this strategy, you can make harder money ranging from 20 to 50 thousand dollars with per deal as a profit. It has some great advantages like you don’t need your money, you are investing someone else money. In this way, you can make extra money without even raising your own money. For that, you have to be a successful flipper. It is nothing but a guide on buying a house, fixing it and then selling it for a nice profit. To be a good flipper you should always buy a cheap, because buying cheap can make a huge difference between being in profit or in the loss.

Final strategy

The final strategy that can generate huge money for the rest of your life is the buying properties in pre-foreclosure from the distressed sellers. It is quite different than the other two strategies in nature. Buying from distressed sellers will cost you much cheaper than the market prices. In this way, you can make smart money in a quick session.

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27Jul/16

Real Estate Sector

A large amount of employment options and prospects are available in the real estate companies. In the beginning of your career you should always opt for the companies where you can learn a lot and you get hands on experiences of work. One Such great project we can think of is Halo Condo with very known company in canada. Thus, real estate serves not only as a wonderful profession, but it also provides you with a basis for gaining your own success in life. Despite there being various tests and a numerous conflicts that occur in this field, for those who choose to work with utmost devotion and put their minds to the work, the profits earned tremendous. Owning a booming business line in the real estate sector is rewarding in itself. So as to obtain a proper authority over properties ranging from business to suburban plots, it is important for you to have a well-developed system, which in turn helps you improve your advertising proficiency and hence the authority. Other than these, there a quite a few other prospects that in charge for giving you a proper real estate job:

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  1. Increased manufacturing growth – By giving appropriate responsiveness to the job, you can know that there, in fact, are no boundaries here. By working upon your marketing skills and strategies, you can obtain a high inflow of money from the business.
  2. Huge profits – Real estate and dealing of properties is essentially one of those few businesses that promise the holder with tremendous amount of profits. This, perhaps, is the most attractive feature of the real estate business.
  3. You own the business: The biggest relief here is that you own everything and you are the ultimate authority; this helps in handling your time efficiency well. Nonaccountability is lovable and you can give your inputs in terms of time as per your requirements. The amount of input to be given, the efforts, along with the scheduling is all your own choice.
  4. Networking supports in achieving – Using your efficient networks, you can develop personal and better relations and hence obtain a wider circle of the agents under you. This helps in knowing the primary beliefs and the kind of work and helps in making beneficial deals.
  5. Has a lot of potential – Since there are no boundaries here, you can develop and build an exceptionally successful business in a very short span. Mostly this business begins as a joint venture, but once you get to have the hand of things, you begin to have broader relation base and also meaningful acquaintances. In most cases, the agent’s profit is limited by the investment money, but as the deals start to become bigger and bigger, the money inflow is truly remarkable.
  6. The real estate sector is immeasurable – this, right here, is why you should opt for this sector immediately. The real estate field including the properties and lands sold per year is the foundation of any country’s economic system. With the rise in population, there is a constant need for flats and houses which results in the fact that the real estate market is a never ending one.
11Jun/16

Some Economical Home-decorating Ideas

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You can create dissimilarity in your design with some inexpensive tips and simple yet beautiful decorating ideas that would help in making your home a perfect example for every home lover. Let’s find out how:

  1. Lights can create a lot of difference: You can spend in lower-wattage bulbs to alter a room’s mood from quiet to loving.
  2. Look into remnant tables at some local stores: Remnants are ideal for recovering pillows, banding drapes and other sewing projects about the house. They’re generally 1/3 of the price and look just as first-class.
  3. Don’t overlook the greenery: If you are having plants in any room, it makes you experience more energetic. Simple green plants often last longer than flowers, and the general design of a single leaf can make more of an outstanding outcome.
  4. Focus on the floorings of your home: Just like walls, floors require your consideration, too. If you’re able to totally modify the surface, consider sanding or staining wood floors, or restoring old linoleum or carpet with tile. For a rapid fix, add an area rug. There are so many alternative, making it simple to find the ideal method, form and color for your space. By making your floors be noticeable, your walls can only look improved.Modern-Home-Decorating-Ideas-Cheap
  5. More storage areas: If you are living in small spaces, it presents two alternatives: building up or building under. Think about using tall bookshelves for a more vivid effect, or take benefit of the space below your bed to stock up things you’d love to keep without anyone knowing.
  6. Fabric is an effortless and economical way to merge all the elements of your room: Have fun by merging up all the patterns, styles and unusual textures of fabric in everything from window treatments to garnishing and fittings.
  7. False architectural feature: This can be done in a range of ways. You can use the painter’s tape, you can coat horizontal or vertical lines, which can make the room look better. You can also make shapes like rectangles and squares, generating a box on the wall for framing out furniture, sconces or your beloved picture. With molding, you can give the delusion of additional intensity and measurement to the walls. Like painter’s tape, making a small box with molding can generate a look that’s positively archetypal.
  8. Secure your room by putting in extensive furniture pieces: if you get a timeless sofa or kitchen table, it will save you money as your style transforms.
  9. Consider simple fixes before you chuck out something: Bring life back to skin furniture with application of a drop of olive oil. You can compose your kitchen chairs new yet again with a little spray paint and some fabric. You can also get the scrapes out of your wood floor and furniture by rubbing them with an almond.