French Homes Why Buy Them?

Writen by Nicholas Marr

Overseas property investors have a choice of homes from emerging markets and are spoilt for choice for investment opportunities. Well that is what the industry believes so why is France still so popular as a place to buy property.

Stability in the housing market

France still offers investors a good opportunity to benefit from its rising property values. It is fortunate to have a housing market which is stable. Its consistency is set to continue for years to come. Low French property prices are still an attraction and the prospects of strong growth are reassuring for the overseas property buyer. France still offers investors a good opportunity to benefit from its rising property values.

Brilliant communications make it easy to get to

French property is very easily accessible and has so many different ways to reach its shores. Most people can easily get there. and get there cheaply. France is famous for its efficient transport system including its high speed trains which go to most regions. The Channel offers ferries and the Euro Star from the UK. Low cost flights are becoming even more widespread flying into some previously hard to reach regions in France. French lifestyle comes with buying a home in France

You are not only buying a French home

Many buyers love the French way of life and this comes as an added bonus when buying a home in France. Buying a French property is more than just bricks and mortar it gives the owner a chance to immerse themselves in the good things in life. Good food drink and relaxation surrounded by beautiful scenery and a relaxed way of life.

Buying property in France the legal process

Unlike many regions France has an established legal process that has been tried and tested over the years. Many view the legal process as relatively safe one. This security increases when you employ legal representatives that specialise in French property.

The French like to rent

Overseas property investors like France but why? Buying property as an investment is made easier as France is a nation of renters. There is always a good supply of tenants available. Buying in the busy areas will almost guarantee that you will let out your investment property

A choice of locations all in one country.

The overseas buyer can experience continental heat mountain snow and maritime living all in one country. The size and location of France offers the buyer a unique choice of housing and location. This will prove to be why France will remain top of the agenda for those looking to buy abroad

Copyright 2006 Nicholas Marr

Nicholas Marr is a life time overseas property investor and CEO of Marr International Ltd. His company run one of Europe’s fastest growing overseas property web sites at http://www.homesgofast.com

Four Reasons To Offer Seller Financing

Writen by Steven Gillman

An example of seller financing: Years ago I bought a rental property, and nine months later sold it for 15% more, without fixing or improving a thing. The easy terms are what sold it. I took $1000 down, and I still get a payment every month, with 9% interest.

Reasons To Offer Seller Financing

1. To get a higher price. As you can see from the example above, buyers pay for easy terms. From the buyers perspective, he gets a place for almost nothing, that the renters will pay for. He comes out okay even if he later sold it for less than he bought it for.

2. To get a decent return on your money. The 9% I’m getting is nice, but the true return was much higher, since I also sold the property for 15% more than I paid, and I get 9% on the entire balance. In fact, for a great return without the headaches of being a landlord, you can simply buy low for cash and sell high with terms.

3. To sell faster. Anytime you expand the potential market for a property, you increase the odds of selling it fast. Selling with easy terms definitely invites more buyers to look at your real estate.

4. To sell difficult properties. If you have a property that is difficult to finance conventionally, offering seller financing may be the only way get it sold, and at a fair price.

Of course the ways you can sell are limited by mortgages and other loans. I owned the rental free and clear, which meant I could sell it any way I wanted. There are other ways to use seller financing though, even if you owe on the property. There are ways to do this safely too. Those topics are for another article.

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Secrets of Making Money from Real Estate Part 4

Writen by John Whiteside

Analyzing and finding the right property deals:

Firstly read my other article on how to Buy the property at a discount, this will cover the basics on how to buy property at a lower than market value price. This is very important because It can completely change the aspects and financing the deal. It is also good to have more equity than just your deposit on the house because you have created instant wealth and because now you will have more equity compared to debt than what the bank had planned the loan for, enabling you to take out bigger and more loans faster. You will also be able to borrow money against your home to help you finance the property 100% if needed.

So aside from buying the rental property below market value you need to look at several other factors. Like the income from rent, interest rates and amount borrowed, expected growth, possible improvements, and other expenses.

Rent can be found from asking people who live in the area, real estate agents, and by property management companies.

Growth can be found from finding previous valuations of the property usually done by the government department in charge of housing, varies from country to country. If you can see how much the property increases by value from year to year you can usually get a good indication of what the capital gains percentage is.

Expenses will consist of insurance for the property, interest payments on the mortgage, any taxes you may have to pay, unexpected repairs such as a toilet breaking, property management fees, closing costs for when you purchase the property and maintenance fees such as electricity (can be passed on to tenant).

Renovation can be used to increase equity and weekly rent. Look here to for some good home improvement ideas. This is important because if you can increase weekly rent the figures will change.

Lets look at this example You find a motivated seller selling a three bedroom/two bathroom property. Because the seller is going overseas and needs the money quickly he is trying to sell it for a negotiable price over $140,000. You now get an independent evaluation which deems the property to be worth $155,000. You go and find out how much the value of the property has increased over the years. You also look into what new buildings such as malls are being built in the area which might increase the value of nearby properties. However You determine capital growth is a minimal 5%. You now find out what the median rent for a three bedroom/two bathroom property in the area of the property. You find out that its $220 per week. You now make an offer on the property for $125,000. The seller does not except. Three weeks later the seller is overseas and counter offers $130,000. Before accepting you go to several banks and find the best deal you can get is 80% financing with 6% interest. The mortgage will be for $104,000 with a down payment of $26,000. The yearly interest only payment will be $104,000*0.06 = $6240 You then establish your other costs such as insurance which is $500 per year, the property taxes which are $1,200 a per year, the cost a property manager $1,300 per year. You do your calculating to find out the cash flow of the property. The income will be $220 per week which is $11,440 per year. Your expenses which are $500 + $1,200 + $1,300 + $6,240 = $9240. $11,400 $9240 = Positive cash flow per year of $2,200, excluding any possible tax advantages you may receive! The positive cash flow will be enough to cover any unexpected repairs, the fees of solicitors for the closing cost, and any vacancy costs. Realizing how good the figures are, you accept the sellers offer. You then paint and remodel the kitchen, a job worth $15,000. You get the property revaluated to see its now worth $170,000. You have increased your equity by $40,000. Because the property’s value has increased you can now charge more rent to your tenants. The new rent is $265 per week. This will increase your positive yearly cash flow to $4,540!

The key now is…Don’t get emotional:

I’m sure you noticed how every figure in the previous paragraph is in bold. This is because as long as the figures work out to make you money, EMOTIONS DON’T MATTER ONE BIT! Just because the property has a really nice garden, do not show you think that and be willing to pay extra for it. You aren’t going to be living in the house so do not buy a house which you want to live up your living expectations. You will also loose your negotiating edge when getting emotional.

One of the worst times to show your emotions is if you are trying to buy the property at an auction. Auctions are designed to put pressure on the buyers. Never go above your limit because of a quick emotional decision, this could lead to huge financial disasters. Also, with auctions don’t bid at all until you are very close to the “Third and final call”.

Settling and contracts:

The two most important things when it comes to writing a contract or sales and purchase agreement are that you have someone with legal advise and experience in property help you write it (a solicitor), and that you always have a legal way out of a potentially bad deal.

If you are looking to put the property into an asset protection structure, a good idea is to write your contracts under “As nominee” instead of your real name. This will allow you to legally buy it and put it into the asset protection structure.

One of the best things about real estate is that the contracts you can enter can be very flexible if needed. Sales and purchase agreements can be drawn for such purposes as renovating or finding tenants. Say for example you could include clause saying that you have six months to work with the house before you pay the money, or one month to find a tenant before you pay for the house to prevent a loss in revenue.

Due diligence is a way for both parties, the buyer and seller, to get out of the deal. If you can word a due diligence period of a few days into the contract you would have a few days to review the property and if unsatisfied with what you purchased, get out of the deal.

Property manager or should you manage your own property?

Now is the time to decide if you would like to use a property manager. I always use one because I can not be bothered fixing a toilet or shower at three in the morning. Property managers will take care of almost everything for you so you have more time. Some will even find tenants for you. Property managers will usually charge a small commission percentage. Some people argue that you shouldn’t pay someone to manage your asset. I disagree because If you spend most of your time repairing and looking after one rental property, you will not have time to find new property deals.

If you choose to manage your own property take these few points into consideration: Be sure to review rent every six months because rent prices will usually go up. Finding the right tenants will require some sifting skills on your behalf. Be sure the tenant is reliable, honest, and can make the rent payments. Check up on their previous renting history with other landlords if possible. Can you handle the tenants? If you have to evict a tenant do you know the exact process you must abide by in your area? Can you keep account of all rental payments? You need to file tax and have a good record of what you are earning from a property, especially if you want to be illegible for tax breaks. Your time is your most important asset, do you want become tied up in just one rental property?

This article was written by John Whiteside. The original article can be found here http://www.use your equity.com/realestateinvesting.html . Use Your Equity can show you how to create value in your home, then show you how to use the newly created equity to make money. http://www.use your equity.com for more information.

The What, Why, And How Of Real Estate Leverage

Writen by Dennis Estrada

Leverage is a way to acquire real estate that is worth more than the asset or equity of the investor to increase wealth. The investor usually leverages his asset or equity thru a mortgage. The return on investment of real estate significantly increases the wealth of the investor.

Real Estate appreciates in value over time. In fact, the real estate doubles every four or five years. With assumption of two percent inflation, the real estate appreciates four to seven percent every year. Thereby, the investor receives four to seven percent return of investment per year. And, the real estate tends to be a stable as an investment on the long run.

For example, the investor has $150,000 as an asset or equity. He looks for way to leverage $150,000. He can purchase a home for $150,000. With a seven percent appreciation, the home appreciates to $160,500 ($150,000 original value + [$150,000 home value * 7 percent]) after a year. The return of investment equals $10,500.

Now, he looks at another scenario. If he purchases a home that is worth $600,000 with $150,000 as down payment, the return of investment drastically rises to the roof. With a seven percent appreciation, the home appreciates to $642,000 ($600,000 original value + [$600,000 * 7 percent]) after a year. The return of investment equals $42,500.

There are risk involve too. Before any investor to proceed with $600,000 home purchase, he needs to evaluate the affordability and gross income. Mortgage Lenders measure up the gross income to Gross Debt Service Ratio (GDS) and Total Debt Service Ratio (TDS). The GDS means a certain percentage of gross income must not exceed the mortgage payment, while the TDS means a certain percentage of gross income must not exceed mortgage payment, home expenses, and total debt. As a general rule, the mortgage payment must not exceed forty percent of gross income. At the end, it all depends on the mortgage lender.

At this time, the investors still take advantage of two monster mortgage tax deduction from Internal Revenue Service (IRS). First, the discount points which are paid upfront to lower the mortgage payment can be deducted on income tax return. Another, the mortgage interests which are paid for every mortgage payment can be deducted on income tax return as well. Mortgage Lender sends a form which tells how much mortgage interest for the year. Consult with your trusted tax advisor and current tax laws for more information.

Leverage works best with real estate property that appreciates. The history of the neighborhood and property type gives the possible future outcome of home values. The home improvements also add values to the property. The installation of carport, renovation of kitchen, construction of rooms, and conversion to hardwood floor provide the best return of investment among home improvements. The economy of the region also delivers clues how the real estate will carry on the next few years. During the strong economy, there are more home buyers. As the demand for home increases, the home values increase as well.

Dennis Estrada is a webmaster of mortgage calculators website which calculate the monthly payment, bi weekly payment, affordability, refinance, annual percentage rate, discount points, and more.

Why We Love the Trinity Florida Area

Writen by Joe Gibbons

When we first considered moving to Florida, our first thought was to look for a new home in Pinellas County or Hillsborough County. After all, Pinellas County is close to all those great Gulf beaches, not to mention Clearwater and St. Petersburg. Hillsborough County had the city of Tampa. There were lots of good schools here in the Tampa Bay area, too, which was important for us since we have two children.

Inquiring around, we learned that all the neighboring counties operate under a school choice program. What this means is that you must apply for your first, second, and third choice schools and wait for an answer to hear if you have been accepted. Living nearby to the school of your choice does not necessarily affect your acceptance. Most families do end up getting their first choice school, but there is a small chance that if you miss the registration date or if that school is full, you may be assigned another school. Well, we missed the registration dates. As we considered the idea of a private school, we happened upon the town of Trinity in Pasco County, Florida. Trinity is a new master planned community just beyond the Pinellas County border. A new community means lots of new schools and newer construction for potential homes for our family. So we looked further.

What we found in Trinity and Trinity real estate was a wonderful surprise. Cows still graze the pastures here, giving Trinity a peaceful country setting. No traffic here, no congestion either. The community was quiet but growing. New businesses and shops were sprouting up along the major roads in the area. Many beautiful subdivisions were in development. We began to explore neighborhoods and get to know the area. With several great schools in the Trinity community, we’d have no problem getting into the neighborhood schools. We decided on a home in the Fox Wood Community, Trinity’s largest subdivision. Fox Wood is a gated community with two community parks, walking trails, and a covered pavilion. There are other great neighborhoods too, like Thousand Oaks, Trinity Oaks, Trinity West, Fox Hollow, Champions Club, and Heritage Springs for those 55 years of age and over. We liked what we saw in Trinity real estate.

As for the beaches, we are still close to those great Gulf beaches of Pinellas County. Trinity is only about a 5 minute drive to the border of Pinellas. Pasco County has some beaches of its own, too, like Hudson Beach and Robert K. Rees Park. We’re close to the cities of Pinellas and Hillsborough too. In fact, with the Suncoast Parkway just a few minutes away on Rt. 54, we can shoot down to Tampa in about 20 minutes. The Tampa International Airport is so convenient too, with an easy exit right off the Suncoast.

Great beaches, schools, restaurants, shops, and metropolitan cities nearby and a great choice in real estate! That’s why we love Trinity, Florida.

Joe Gibbons is a real estate sales agent with the Lipply Real Estate Group of Remax Realtec. Since moving to Florida from Fairfield, CT and choosing to live in the Trinity area, he has been specializing in Trinity Real Estate. Visit the team’s website at Trinity Florida Real Estate for more information on Trinity, Florida. Call toll free at 1 888 423 5775 to get homes available for sale in Trinity. Ask for Joe!

Joint Ventures In Real Estate Development; So How Do They Work?

Writen by Colm Dillon

There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture.

Usually the most basis reason reveolves around something you don’t have.

Some of them may be:

1. I own land … have capital & capacity to borrow … but no experience.

2. I have capital & capacity to borrow … partner has land …

Descriptive Terms in Real Estate Ads Yet More Definitions

Writen by Raynor James

If you are buying or selling a home, the chances are good you struggle with the meaning of descriptive real estate terms. Here are explanations and definitions for more terms.

“Plantation Shutters”

Refers to interior shutters with large, moveable louvers that can be used much like Venetian blinds. Often they’re used only on the bottom half of the window.

“Palladian Window”

A tall window that is rectangular except for an arched top and has wooden muntins separating the panes of glass. It is based on a revived classic style of architecture and the work of Andrea Palladio. Builders often use them as the window over the front door in homes with two story entrance foyers.

“Pocket Doors”

Doors that open by sliding into a slot in the wall much as a serving tray fits into a vertical slot built into a kitchen cabinet. It leaves wall space unaffected by opening and closing doors. I’ve seen them on bathrooms in modern houses. I’ve also seen them used in pairs that meet in the middle when closed as they were in older houses. Between a living room and dining room might be a good place. My grandmother had one between the front and back parlors in her home in Richmond, Virginia. Now that was a neat old house. It could always expand to accommodate one more family member or friend.

“Fireplace,” “Wood Stove,” “Wood Stove Insert”

A fireplace can burn wood, coal, or gas (natural or propane). If gas, it may or may not be vented to the outdoors. It is generally thought to be dangerous to have a non vented gas fireplace in a bedroom and is against “code” in many areas. A wood stove burns wood, is free standing (on a non flammable surface), and is vented to the outside. A wood stove insert is generally fitted into an existing fireplace designed to burn wood or coal. Preferences have to do with perceived beauty, convenience, heat production, and safety.

Well, those are some of the terms frequently seen in real estate listings and advertisements and their usual meanings at this writing. I hope you find it useful.

Raynor James is with the FSBO site http://www.fsboamerica.org FSBO homes for sale by owner. Visit our “sell my home” page http://www.fsboamerica.org/seller.cfm to sell your house yourself with a free 1 month listing.

The Size of the Castle is in the Eyes of the Beholder

Writen by Reg Gustin

The rapidly appreciating home values throughout Phoenix have made moving up into newer or larger homes a huge challenge for many families. Although these owners may have substantial equity built up in their first home, making the leap to another larger home may also mean substantial jumps in mortgage payments. But while some home owners feel stymied by the increasing home values, others are finding it a unique opportunity to simplify their lives.

Many communities have seen a trend of “bigger is better”, especially in the real estate arena. There are a number of neighborhoods that have large, boxy houses perched on small lots, with little thought to character or charm. In 2001, Sarah Susanka wrote a book that captured a lot of attention – The Not So Big House: A Blueprint For The Way We Really Live. This book emphasized that small homes can offer a great deal a beauty, charm and style, all without the price tag of the McMansions.

In Phoenix, many homeowners are taking this trend to heart. They are selling their large, family homes and moving into smaller homes that are a better fit for their lifestyle. If you think these smaller homes are the “starter homes” of old, think again. These homes may be smaller and may be streamlined, but that’s where the similarity ends.

These homes are elegant and offer custom built features, generous, open floor plans, luxurious pools and spas, easy access to golf courses, and plenty of room for entertainment. The homeowners also realize a great deal of equity from the sale of their family home – money they can use to buy a smaller, but more luxurious home and even have money left over to invest, purchase a second home, put into a college fund, or even help other generations get into the housing market.

The trend of downsizing also creates opportunity for younger home buyers. As more of the baby boom generation decides to move down to smaller homes throughout Phoenix, it increases the inventory of family homes available for sale. An increase of inventory may soften the prices for the family home, making it a little more affordable for younger buyers that previously wouldn’t have been able to afford to buy a home.

Buying a home for retirement isn’t the same as getting into a retirement home. The baby boom generation is alive and vital, with home needs that reflect their vitality and healthy pursuit of life.

Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs.

Get a FREE mortgage rate quote from a reputable Arizona mortgage company at Central Arizona Homes.

Search the Arizona MLS at Central Arizona Homes

Click here and get a FREE copy of The Greater Phoenix Area Housing Appreciation Report, as compiled by Arizona State University with your free subscription to his monthly ezine, MARKET NEWS.

The Great Real Estate Bubble Quiz

Writen by Mark Walters

You hear it asked on the radio, in the newspapers and on TV.

“Are we experiencing a value bubble in real estate and is it

ready to burst?”

Do you have an answer for that question? Do you have a guess?

Yes, I know the so called experts are lining up on both sides of the question. But what about you? You’re living right in the middle of the action. You can judge what’s happening in your city your neighborhood.

Are property owners going to be safe or sorry?

To help you form an opinion of the current state of the real estate market we have created the…

GREAT REAL ESTATE BUBBLE QUIZ…

Everyone gets a passing grade and no homework is required, so put your thinking cap on and jump in…

True False Question

___ ___ Boston Real Estate values are up 90% in the last six years?

___ ___ San Francisco real estate values are up 90% in the last six years?

___ ___ Denver real estate values are up 90% in the last six years?

___ ___ The price of the average home in New York was $50,000 in 1975 and is $325,000 today..a gain of 550%?

___ ___ The average home price in Los Angeles was $50,000 in 1975. After a gain of 500% it sells today for $300,000?

___ ___ A 6,000 sq ft home in Greenwich, CT. worth $500,000 in 1987 sells today for $4 million?

___ ___ Fannie Mae, the largest buyer of mortgages in the US, issued a report warning that the probability of a housing bust has risen sharply in certain parts of the country.

I bet you scored 100% and earned your “Doctorate of Bubblology”.

OK, why is Fannie Mae so glum? They point to loose (We would say CRAZY) lending practices, like interest only loans and the increase in loan approvals that are not backed by full documentation of the borrower’s income and assets.

We imagine a borrower’s conversation with a lender today goes something like this:

Borrower: “Will you give me a quarter of a million

dollar mortgage loan.”
Lender: “Can you pay it back?”
Borrower: “Probably.”
Lender: “Loan approved!”

Now you may be thinking that skyrocketing values are in an isolated number of big cities, right? That’s true, but those cities are our major commerce centers. When things go bad there the negative effect ripples across the country.

Here’s the bottom line: Our economy is always blowing bubbles. Some burst and some don’t.

Only time will tell about this one.

Mark Walters is an investor entrepreneur helping other investors from his Web pages at http://www.Lease Option Sub2.com

Real Estate Agents Getting More Sales from the Internet

Writen by Rick Hendershot

Some estimates say that more than 60% of people looking to buy or sell real estate go to the internet first when they begin their search for real estate information. And as agents and brokers become more net savvy, and more and more people get online, that number will only increase.

That means that the hottest sources of real estate prospects, leads, listings and sales is online. Which obviously means that if you are a Real Estate Agent, or if you provide a real estate service, you need an online presence.

** Establishing an online presence

Most people have no idea how to create an online presence. But the truth is, it is fairly straightforward, once you understand how the internet works.

It’s all about getting traffic to your website, and then having a website attractive enough to attract the attention, and get the responses of your website visitors.

** How do you get traffic?

There are two well established ways to get traffic to your website. Both of them involve the major search engines like Google, Yahoo and MSN.

The first method is to run advertisements that target the buyers or sellers you want to reach. There is no better way to advertise than by using paid search advertising what is called “pay per click” advertising.

The second method is to promote your website so it comes up high in searches. Most people begin their search for real estate information by typing a search term into their favorite search engine. The list of possible sources that the search engine gives you is called “natural” or “free” results. You place high in these searches by impressing the search engines with the importance of your site. When you come up in the first few spots in “free” searches, you are virtually guaranteed to get “free” traffic because people will click on your link and be taken to your site.

** Pay Per Click Advertising

Most real estate agents are used to traditional advertising methods such as running ads in real estate publications. And they think it is necessary to pay between $250 $750 for one insertion that may or may not bring them any responses. That is the major problem with traditional advertising it is expensive, and it gives you no guarantee of response.

But pay per click advertising is different. On the one hand it can be targeted to reach the precise target segment you want to reach for instance, people looking for real estate in your town or city.

On the other hand, you only pay for “clicks” when someone who is potentially interested in your service clicks on your ad and visits your website. This is the revolutionary advertising concept that has made Google the hottest and most dominant player on the web.

But pay per click advertising can also be expensive and difficult to manage. Fortunately there are ways of establishing an online presence without paying hundreds or even thousands of dollars a month.

** Search engine marketing Search Engine Optimization

As mentioned earlier, the other way to generate online traffic is to promote your site so it comes up high in organic or free searches. This is called “search engine marketing” and involves two important components.

First, it involves creating a website that makes it very clear who your prospective visitors might be. This process is called “search engine optimization”. You “optimize” your site to include as many references as possible to the subject matter you want to focus on, and the target market you want to reach.

For instance, if you are trying to reach potential home buyers in Sarasota, Florida, then you must make it clear that your site is about “real estate in Sarasota.” You must build as much content into your site about Sarasota as you can.

Since most online business people do not know the “tricks of the trade” when it comes to search engine optimization (SEO), they hire an expert who does. Unfortunately there are no guarantees when it comes to search engine optimization. Even with sites that have been highly optimized there is no guarantee that the search engines will reward you with a high ranking. Nevertheless, it is an important exercise to go through, and is one of the foundations on which to build your search engine marketing.

** Search engine marketing Linking

The other component of search engine marketing is to get lots of “inbound links” pointing to your site from other sites. An inbound link is a link on someone else’s site that makes a reference to yours.

Links give you two important sources of traffic. First, visitors to the sites where your links are found may actually click on those links and visit your site. This is especially the case if your links are on high traffic pages that are highly relevant to your service.

Second, inbound links impress the search engines. When the search engines find lots of links to your site in various places around the web, they interpret this as an indicator of the importance of your website. And that in turn results in the search engines rewarding you with higher rankings in free or organic searches.

Inevitably that results in traffic. And if your website is written to get results, traffic should convert to sales.

If all of this sounds a bit overwhelming, it is best not to simply throw up your hands in despair and concede all of those potential online customers to your net savvy colleagues. The fact is there are very inexpensive ways to cash in on all that online gold. You just have to keep looking until you find the right people to work with.

Rick Hendershot creates Lead Producer Websites for real estate agents | Link Popularity text links to get traffic | Real Estate Investing Made Easy