Understanding the Benefits and Process of Land Investing

Investing in land is an often overlooked and misunderstood aspect of real estate investment. Yet, it provides an opportunity for lucrative returns and strategic wealth growth. One region that provides an attractive market for land investing is real estate investment property Australia. The ongoing demand for space and development combined with the constant population growth makes investing in Australian land a viable option for investors worldwide.

Land is a finite resource, meaning it is limited and cannot be manufactured or replicated. This makes it an attractive investment option. Why? Because as demand increases and supply remains constant, the value of land appreciates. Land investing, therefore, holds the potential for significant profit in the long term.

Moreover, land is a tangible asset that provides the investor with control. Unlike stocks or bonds, you have more say over what happens to your investment, providing an opportunity to affect its value directly.

The Allure of Australian Land Investing

In Australia, land is viewed as one of the safest forms of investment. Real estate investment property Australia is a thriving industry, and land plays a significant role in this growth. Many investors have already recognized the potential of Australian land and have subsequently benefited from their investment.

Australia’s vast landscape provides a variety of investment options from urban plots in thriving cities like Sydney and Melbourne to rural lands. While urban areas offer the allure of development and fast returns, rural regions are attracting investors due to their rich natural resources and agricultural potential.

How to Invest in Australian Land?

Investing in real estate investment property Australia land is similar to investing in other types of real estate. It involves thorough research, intelligent decision-making, and strategic planning.

Firstly, you need to locate a suitable property. This involves researching the market and identifying prospective lands that meet your investment objectives. Consider factors such as location, growth potential, and the type of land to ensure that it aligns with your investment objectives.

Secondly, secure financing. Although land is typically less expensive than developed properties, it still requires substantial investment. Therefore, it’s crucial to secure financing before going ahead with the purchase.

Lastly, seek legal assistance. This helps to ensure that all legal aspects, such as zoning and usage restrictions, are thoroughly considered. This is important to avoid any potential issues in the future.

Conclusion

Investing in land, especially in a region like Australia, is a strategic move towards securing a financially stable future. Though each investment requires diligent planning and execution, the rewards can be great. With the right approach, investing in real estate investment property Australia land can serve as a reservoir of wealth that continues to grow over the years.

A cap rate calculator is an essential tool used by real estate investors to estimate the potential return on investment (ROI) on a particular property. It’s based on the ratio between the net operating income produced by a property and its capital cost or market value. This ratio, represented as a percentage, is known as the capitalization or ‘cap’ rate.

The formula for calculating cap rate is straightforward: Cap Rate = (Net Operating Income/ Current Market Value) x 100. To use this formula, you first need to understand the two main components – the net operating income (NOI) and the current market value.

The Net Operating Income represents the annual income that the property generates, subtracting all operation costs. It’s important to remember that financing costs, like mortgage payments or loan interest, are not included in the calculation.

The Current Market Value is the price you would pay to buy the property. In most cases, this is the purchase price, but it can also be a current valuation in the case of re-investments or re-valuations.

To illustrate, if a property had an NOI of $10,000 and a current market value of $100,000, its cap rate would be 10%. This means that if operated as it is, without a mortgage, the property would pay for itself in 10 years.

The cap rate is a valuable instrument while comparing investment opportunities because it allows you to evaluate properties based on performance rather than price. Properties with a higher cap rate are presenting a higher risk but potentially offering higher returns, while a lower cap rate could mean less risk but lower returns.

While cap rate is a useful tool, investors should also evaluate other factors such as the property’s growth potential, the stability of its income, the quality of the tenants, or the condition of the building. That’s where the location of the property plays a significant role, and one of the areas gaining attention from investors is Brisbane in Australia.

In recent years, Brisbane has positioned itself as one of Australia’s fastest-growing cities, thanks to its steady economic growth and rising population. Hence, determining the best suburbs to invest in Brisbane has been a common subject among property investors.

Some of the most promising suburbs include New Farm, South Brisbane, Taringa, and Woolloongabba. Each suburb has its unique benefits, such as proximity to the central business district (CBD), reputable schools, or the growing demand for rental units. Therefore, determining the best options would require a more personalized and strategic approach.

In conclusion, utilizing a cap rate calculator can provide clear insights into the potential return on investment of property within certain areas, including the best suburbs to invest in Brisbane. However, it should not be the sole determinant in making investment decisions. Other factors such as personal risk tolerance, financial objectives, and market conditions should be considered to ensure a balanced and successful property investment.

When you are at the brink of losing your house due to payments delay, brooding and whining about the problem is normal. However, taking the predicament sitting down won’t do anything to solve it. By the time you hit rock-bottom on foreclosure, asking to modify loans is virtually the greatest means to save your house from being put on the market. The economic recession has slowly been changing the way loan companies and banks go about with getting paid. These days, most of them would be willing to alter the interest rates and monthly payments than commence costly foreclosure proceedings. This means that instead of running away from lenders or downsizing on other commodities, it is best to have your interest rates and monthly payments modified. But how do you exactly do this?Here are the initial steps to modify loans. 1. Get a clear idea of your finances. The very thing that brought you to the brink of foreclosure is the ultimate means to get you started on loan modification—financial analysis. Know the detailed breakdown of your expenses, bank account balances and debits. You should know where your money goes and how you can cut on expenses. Seeking for a free financial counseling service is also another way to get accurate facts about your financial status. Seeing the bigger picture of your cash flow will be paramount to the next step in the process. 2. Contact your lender and tell him about your loan situation.Once you’re done analyzing your finances, the next crucial thing to do is informing your lender about it. Instead of running for cover, it is best to inform the lender about the looming foreclosure as soon as possible. 3. Clearly explain your dilemma to the lender.There is no greater time to whine and narrate about your financial problems than when you are already face to face with the lender. Tell him about your exact and detailed money situation, but don’t be too dramatic in doing so. Most borrowers who appear too broke and bankrupt are the ones who don’t get their loans modified. You are there to present a proposal to your lender, so it is best to exude sincerity and professionalism. 4. Answer your lender’s questions honestly and confidently.Expect your lender to ask you a whole bunch of questions that relate to your finances. Furnish them with the necessary documents they ask of you to produce for them to assess your request better and faster. Show them that you’d be able to pay the reduced monthly payment by backing them up with documents and an assurance of a pay up.5. Consult a loan modification specialist to verify the feasibility of the deal you have negotiated with your lender. This is necessary for you to be sure that it is reasonable and will not only free you from foreclosure for a month or two. Some of them might offer a forbearance agreement than to modify your loan. However, keep in mind that forbearance is not a long term solution to foreclosure. Those who are granted of this service are borrower’s who are not in yet foreseen to be in the pits of foreclosure. Loan modification is a strong weapon against foreclosure. No one has to lose a home even in the midst of recession. The sooner you act to modify loans, the sooner you’ll be free from the sinking lower into the abyss of foreclosure.

By Simon Volkov

Winning the national lottery would certainly be an exciting event for nearly anyone. Every year, millions of dollars are amassed through the sale of lottery tickets purchased by people that dream of striking it rich.

In the U.S., the national lottery refers to games like Mega Millions and Powerball. Part of the ticket sales in each state is used to improve education while the rest accumulates until someone selects the winning lotto numbers.

Along with national lotto games, most states also offer lottery tickets through their state system. National lotteries have significantly higher jackpots than state games, but the odds of winning are also much higher with the average odds of 1 in 18 million.

To date, the biggest Mega Millions jackpot ever paid out was $380 million, while the biggest Powerball jackpot was $340 million.

There is little question that amount of cash would forever change a person’s life. Winning a multi-million dollar lotto jackpot would provide financial freedom that most people can’t even imagine. Nonetheless, there are drawbacks associated with suddenly acquiring large amounts of money.

One of the more significant problems is managing undesirable fame. There have been many reports of lottery winners being inundated with uninvited guests and long-lost relatives arriving on doorsteps. One ways to keep newfound wealth private is to hire a personal representative, such as a lawyer or financial consultant, to claim lottery winnings.

Another consideration is the amount of taxes due on lotto winnings. Winners are responsible for paying federal and state income taxes, which often amount to about half of total winnings. One of the best approaches is to hire a financial planner. Professionals can help winners engage in methods to lessen taxes, along with strategies to increase earnings through investing.

Winners can elect to receive their money as lump sum cash or annual installments. People that win millions of dollars are placed into a different tax bracket and may be subjected to higher tax rates. Accepting installments typically provides more money in the long run and can also lessen payable taxes.

Financial planners can help winners develop investment plans that reduce taxes and expand winnings. These could include transferring funds to tax-sheltered retirement accounts like a Roth IRA or placing money into an irrevocable life insurance trust.

In addition to national lotteries, state games also provide large cash prizes and valuable items such as cars and vacations. All prizes obtained from legal gambling are subject to state and federal income taxation. Cash and prize values have to be reported on personal income tax returns. These include money and prizes won through contests, sweepstakes, dog and horse racing, raffles, lotteries, and casinos.

To offset lotto winnings, taxpayers are allowed to deduct gambling losses from tax returns as long as adequate documentation is provided. Anyone that gambles regularly needs to setup accounting practices to track losses and winnings.

Lotto jackpot winners should think about hiring an estate planner to protect money for future generations. Estate planners can make use of different methods that reduce estate and inheritance taxes and broaden financial investments.

Sadly, more than one person has invested their life savings in hopes of winning the national lottery. Gambling can quickly turn into an addiction that drains bank accounts and ruins relationships. It is crucial to retain control over personal finances and never spend more cash than you can afford to lose.

About the Author: Anyone that is fortunate enough to win the

national lottery

needs to become educated about ways to maximize their newfound wealth. Financial expert and real estate investor, Simon Volkov provides estate planning and investing strategies to reduce lottery taxes at

SimonVolkov.com

.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=1325601&ca=Finances

Patience in property investment is a virtue

by

Paul K. Carder

You can never fail if you never give up.

It s interesting that you can find a lesson in any situation if you look hard enough.

I recently purchased this property in Kent but it took me 9 months to buy it.

Now an issue I find with a lot of investors I come across is that they sometimes get too impatient and land up losing or giving up on deals far too quickly.

Those of you who read my articles regularly will know that I look at the Circumstances first then the Timing and then some sort of Leverage.

When I first spotted this property it was on the market for 130,000 having recently been reduced from 150,000. This got me thinking; this was a big reduction, these properties normally sell for 160,000- 170,000 and so it seemed cheap. It appeared to be a repossession and I deduced this from the internal photos as the bath taps had yellow and black tape around them.

Also the property bee tool revealed that it had been on the market for 3 months and that s a long time for a repo in the South East area. Additionally there had been many sales agreed and then relisted so I knew there could be a problem.

So detective Ribbons came out and made an appointment without asking too many question to start with.

Once at the property it was apparent that there was a structural issue with the property next door and it was affecting this property. It had cracks appearing around the front bedroom window; I thought this would be hard to get past a surveyor and this is when I started my line of questioning.

If you ask an agent a direct question they have to tell you the truth. So I asked if there had been any problems with anyone getting a mortgage because of the cracks, the answer was YES. Good start. I asked how many buyers had fallen through and the answer was 3.

I now had my leverage. So I offered 100,000 and the agent put it forward and came back within 10 minutes and said definitely NO. The main issue was that it had only been on the market for 3 months and had been priced by the lenders to take into account the structural problem and so they would not take my bid.

Oh darn, let s leave it and move on to the next one . NOT ON YOUR NELLY. Me leaving a deal like this on the table without at least a real fight, no chance.

A plan of action was required and so I put the property into my filing system and began to ring the agent every fortnight.

Now if you keep calling agents about the same house 1 or 2 things will happen. You will either build such a good relationship with them it will be great in the long-term or you will simply p*** them off.

I got on really well with this agent and I know I m one of the luckiest so and so s who walks this earth.

I was once told by one of my mentors that

Luck is when opportunity meets preparedness

and for what was about to happen I was prepared. The agent let me know that the asset management company (AMC) was very rude and putting pressure on him to find a buyer. His company was not entertaining mortgage buyers on this house because they did not want the hassle, so he advised them to take offers from cash buyers, the asset company said NO we want 130,000 as there is a higher mortgage already on this house and they need all of this to clear it.

I was regularly putting my offer forward in readiness of them accepting it because my belief was that I would be doing this deal, I could smell it.

I have a rule, which is, never rely on what you are told ; and I m a very patient man.

After 9 months and many offers later we had a breakthrough.

The woman who was dealing with the property at the AMC resigned and the new person was out to impress and clear the decks. I got the agent to represent my offer with photographs and copies of the old buyers surveys and the new member of staff could see the issue and hey presto after 9 months we agreed the property at 100,000.

Interestingly enough I met an investor at a network meeting who had experience in structural issues and he bought it from us at 120,000 cash and we did not even have to complete. How cool is that?

Paul RibbonsProperty investment expert Author of Hustle your way to property successhttp://paulribbons.com

Article Source:

ArticleRich.com