SUMMARY: An intro to the last, great beachfront real estate bargain of Latin America: Ecuador.
Think the phrase "cheap beachfront property" is a thing of the past?
If you paid $40,000 for your beach house, how long ago did you buy it? In the US it would have had to have been 30 years or so ago, in Puerto Rico, over 15 years ago, in Costa Rica, over ten years ago easy.
But we have another chance. Even now in 2008 there is a place a few hours by plane from Miami, with Hawaii-like weather, friendly locals, outstanding beaches and where foreigners are not only welcome to buy, but encouraged.
The place is Ecuador. How it has slipped through the cracks this long is amazing.
So the first step towards your $40,000 beach house is to understand where you can find one. Not in the US (obviously), nor in Costa Rica or Panama, but in Ecuador.
The second step is to define exactly the type of property you would like (condo, plot of land, house) and your budget.
The third step is to go to kayak.com and book your flight to Ecuador. From Miami, New York and LA roundtrip flights can be had starting around $400.
The fourth step would be to do some preliminary research on the net. Remember that any listings you may find in English are probably priced for foreigners, sometimes at double or triple the price you could find locally. There are great places online to find listings, but that is covered more thoroughly in the report mentioned at the end of this article.
The fifth step would be to go to Ecuador. Give yourself as much time as possible in Ecuador. A few months are ideal. Make some local friends, get acclimated to the culture and decide if Ecuador is right for you. Easy ways to make local friends would be to go to the local churches, take Spanish lessons, or join local clubs with a similar interest to your own.
Then with a few local allies on your side, ask them to recommend a few trustworthy real estate agents and local lawyers.
The sixth step is to start your house hunt. Go to the coast, decide where you want to live and walk the streets yourself looking for phone numbers spray painted on the sides of buildings indicating they are for sale. Have a local friend help you make contact (so they don’t hike the prices up on you when they hear your accent.)
The seventh step would be to have your lawyer check out the papers of the properties that interest you, making sure they are in order. If the papers are in legal order, you make a bid similar to the US, but in Ecuador you will probably be dealing directly with the owner. Locals prefer to sell their houses themselves instead of through agents.
If the bid is accepted, you sign a sales contract similar to those in the US, and the closing of the sale takes only a few weeks in Ecuador. Closing costs and fees are only a fraction of those in the States.
Beachfront land plots in the $20,000 dollar range are still available. Castles on seafront cliffs are available for around $150,000 and attractive little seaside houses can sell for as little as $40,000, but only until the place gets discovered.
For the need-to-know info before you go, like how to find the hottest steals and avoid the common scams, check out the full report on Ecuador Beachfront property at here
By Domenick Buonamici
Insiders Guide to Beachfront Property in Ecuador
Senin, 29 Desember 2008
Jumat, 26 Desember 2008
The Way to Succeed in Real Estate
Self improvement has been one of the primary pursuits of most people throughout history. In recent years, that pursuit has focused on aspects such as weight loss and monetary improvement. Crash diets and get rich quick schemes have been pumped into society, infusing it with so many that no one really knows which to follow or who to believe. Here's some good, sound advice that you can decide for yourself whether or not you believe.
Due to the mass of information out there, people have been forced to learn for themselves which diet or plan is true and applicable to their personal situation. In recent years more informative books have come out about all kinds of things including how to get rich quick. These informative books teach principles that will help people get rich in a more "tried and true" fashion, ways that aren't "too good to be true." There are a number of ways to get rich that actually work if done right. These include owning businesses, investing in stock and investing in real estate.
Real estate is the most stable method of earning a passive income. It doesn't require a lot of up-keep and creativity like a business does, it doesn't go up and down in value often like the stock market does, and it is everywhere. There are some key concepts to understand, however, that will help anyone become successful in real estate.
These include
Understand the market
Be observant
Different methods of real estate investing
Understand the Market
Understanding the market is essential for anyone seeking to make money through real estate. Ever heard of a "buyer's market"? A buyer's market is an area where real estate is cheap at the moment. This can happen when a new area is being developed quickly and there is a large supply with not as large a demand. It's important to watch what's going on in undeveloped areas, because if you want to get in when it's a buyer's market, you've got to be one of the first to jump. If you wait too long, the demand will have already increased as everyone else begins to see what an opportunity it is.
A buyer's market can also be created when some sort of natural or man-made disaster occurs, causing people to evacuate an area. In this case people will get out at all cost. They want to salvage anything they can from their property, and will sell it for less than it is worth. You won't actually be living there, you will just be owning a piece of land, likely with a home on it, that you bought for really cheap. When the area gets fixed up, and people start inhabiting the place again, your property will be worth more than you paid for it.
Be Observant
Notice what's going on around you. This will help you see when the market turns to a buyer's market. It will also help you to notice deals that aren't obvious to everyone. Sometimes people have a home up for sale for a long time, but nobody seems to be biting. They may be so fed up with it, and so ready to move on, that they will sell for less than they originally asked. They just want to be done with the whole thing. This is a huge opportunity, but you'll only notice it if you are observant.
Also, along with being observant is noticing parts of town that you wouldn't necessarily live in yourself. You can sometimes find inexpensive property that was foreclosed by the bank. If the property goes up for auction, you've got a very good opportunity at your fingertips. Again, you won't be living there; you'll be renting it out, or selling it to someone else for a larger price than you bought it for.
Different Methods of Real Estate Investing
Twice I've mentioned that you won't be living in or on the real estate property you buy. That's because if you are trying to make money from real estate, you've got to have stuff to play around with. The home you live in isn't really an option because selling it just means you have to find another place to live. So, with that in mind, how do you make money off of real estate? There are two main methods: Rent it out or sell it.
Renting out property means that you receive a constant income from the renters of the property, but it also means that you will be collecting rent, keeping things in good shape, finding renters, dealing with complaints and many other things. To determine if this is the way you want to earn your money, you have to way the pros and cons and decide what you're willing to put up with.
If you decide that you don't want to deal with all the extra stuff that landlords deal with, then perhaps you'll choose to sell the property. If this is the case you'll want to make sure that you wait until the property has appreciated in value. Sometimes a little fixing up helps the property appreciate. Sometimes a little time is all that's necessary. Whatever it is, you've got to make sure it happens, or else it is senseless to sell.
Both methods can be combined for an optimal outcome. While you're paying off the debt you went into to buy the property, you may choose to have renters live in it, then, when you've received enough income, you may find that it's time to sell it. Renting it is a great way for you to wait out the time it takes for the property to appreciate.
Due to the mass of information out there, people have been forced to learn for themselves which diet or plan is true and applicable to their personal situation. In recent years more informative books have come out about all kinds of things including how to get rich quick. These informative books teach principles that will help people get rich in a more "tried and true" fashion, ways that aren't "too good to be true." There are a number of ways to get rich that actually work if done right. These include owning businesses, investing in stock and investing in real estate.
Real estate is the most stable method of earning a passive income. It doesn't require a lot of up-keep and creativity like a business does, it doesn't go up and down in value often like the stock market does, and it is everywhere. There are some key concepts to understand, however, that will help anyone become successful in real estate.
These include
Understand the market
Be observant
Different methods of real estate investing
Understand the Market
Understanding the market is essential for anyone seeking to make money through real estate. Ever heard of a "buyer's market"? A buyer's market is an area where real estate is cheap at the moment. This can happen when a new area is being developed quickly and there is a large supply with not as large a demand. It's important to watch what's going on in undeveloped areas, because if you want to get in when it's a buyer's market, you've got to be one of the first to jump. If you wait too long, the demand will have already increased as everyone else begins to see what an opportunity it is.
A buyer's market can also be created when some sort of natural or man-made disaster occurs, causing people to evacuate an area. In this case people will get out at all cost. They want to salvage anything they can from their property, and will sell it for less than it is worth. You won't actually be living there, you will just be owning a piece of land, likely with a home on it, that you bought for really cheap. When the area gets fixed up, and people start inhabiting the place again, your property will be worth more than you paid for it.
Be Observant
Notice what's going on around you. This will help you see when the market turns to a buyer's market. It will also help you to notice deals that aren't obvious to everyone. Sometimes people have a home up for sale for a long time, but nobody seems to be biting. They may be so fed up with it, and so ready to move on, that they will sell for less than they originally asked. They just want to be done with the whole thing. This is a huge opportunity, but you'll only notice it if you are observant.
Also, along with being observant is noticing parts of town that you wouldn't necessarily live in yourself. You can sometimes find inexpensive property that was foreclosed by the bank. If the property goes up for auction, you've got a very good opportunity at your fingertips. Again, you won't be living there; you'll be renting it out, or selling it to someone else for a larger price than you bought it for.
Different Methods of Real Estate Investing
Twice I've mentioned that you won't be living in or on the real estate property you buy. That's because if you are trying to make money from real estate, you've got to have stuff to play around with. The home you live in isn't really an option because selling it just means you have to find another place to live. So, with that in mind, how do you make money off of real estate? There are two main methods: Rent it out or sell it.
Renting out property means that you receive a constant income from the renters of the property, but it also means that you will be collecting rent, keeping things in good shape, finding renters, dealing with complaints and many other things. To determine if this is the way you want to earn your money, you have to way the pros and cons and decide what you're willing to put up with.
If you decide that you don't want to deal with all the extra stuff that landlords deal with, then perhaps you'll choose to sell the property. If this is the case you'll want to make sure that you wait until the property has appreciated in value. Sometimes a little fixing up helps the property appreciate. Sometimes a little time is all that's necessary. Whatever it is, you've got to make sure it happens, or else it is senseless to sell.
Both methods can be combined for an optimal outcome. While you're paying off the debt you went into to buy the property, you may choose to have renters live in it, then, when you've received enough income, you may find that it's time to sell it. Renting it is a great way for you to wait out the time it takes for the property to appreciate.
Rabu, 24 Desember 2008
Buying a Home in a Down Market
Should You Wait to Buy in a Down Market of Falling Home Prices?
Everybody wants to know how to best time the market when buying a home. It's just natural. Especially if you're thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right?
Some Home Buyers Should Buy Immediately
You're probably thinking: "Of course, she would say that. She's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why:
* If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
* If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home.
* If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you? (This ignores monthly payments, but you would make those if you were renting, too.)
Consider the "Savings" on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.
Review of Selling and Buying Numbers
1. So you "lost" $30,000 on the sale of your home
2. But you "made" $50,000 on the purchase of your new home
3. Doesn't that put you $20,000 ahead?
Don't Forget the Impact of Interest Rates
Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
# FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
# FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
# FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.
Look at the Differences Among Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
* $425,000 sales price, at 8.25% interest, your payment is $2,554.
* $450,000 sales price, at 7.75% interest, your payment is $2,579.
* $475,000 sales price, at 7.25% interest, your payment is $2,592.
* $500,000 sales price, at 6.75% interest, your payment is $2,594.
* $525,000 sales price, at 6.25% interest, your payment is $2,586.
The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.
A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don't panic over newspaper headlines. Make an informed decision. Run your own numbers. (About.com)
Everybody wants to know how to best time the market when buying a home. It's just natural. Especially if you're thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right?
Some Home Buyers Should Buy Immediately
You're probably thinking: "Of course, she would say that. She's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why:
* If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
* If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home.
* If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you? (This ignores monthly payments, but you would make those if you were renting, too.)
Consider the "Savings" on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.
Review of Selling and Buying Numbers
1. So you "lost" $30,000 on the sale of your home
2. But you "made" $50,000 on the purchase of your new home
3. Doesn't that put you $20,000 ahead?
Don't Forget the Impact of Interest Rates
Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
# FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
# FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
# FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.
Look at the Differences Among Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
* $425,000 sales price, at 8.25% interest, your payment is $2,554.
* $450,000 sales price, at 7.75% interest, your payment is $2,579.
* $475,000 sales price, at 7.25% interest, your payment is $2,592.
* $500,000 sales price, at 6.75% interest, your payment is $2,594.
* $525,000 sales price, at 6.25% interest, your payment is $2,586.
The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.
A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don't panic over newspaper headlines. Make an informed decision. Run your own numbers. (About.com)
How To Get Right Real Estate ?
Right Real Estate not only best for us, but best for market. The Keys to get right Real estate are :
1. Location
2. Location
3. Location
Why???? Because location determines profit or luck in the future. The Right location will give us best return of investments. So, don't follow emotion only.
1. Location
2. Location
3. Location
Why???? Because location determines profit or luck in the future. The Right location will give us best return of investments. So, don't follow emotion only.
Langganan:
Postingan (Atom)