Real Estate Characteristics

Real estate has several unique characteristics that affect its value. There are economic characteristics and physical characteristics. Real estate is a product to be purchased but it is different from anything else due to the characteristics that will be discussed here.

The economic characteristics that influence value are scarcity, improvements, permanence and area preference. Scarcity is simply demonstrated in the saying, “They aren’t making any more.” The supply of land has a ceiling and cannot be produced more than what exists today. This value of this supply however, is influenced by other characteristics.

Improvements, such as buildings on one parcel of land may have an effect on the value of neighboring parcels or the entire community. If a large company builds in a certain depressed neighborhood, the value of living their will probably increase because of the introduction of jobs. This value would impact on neighboring communities, thus increasing value in some ways to the real estate in these areas.

Permanence has to do with the infrastructure. As buildings, houses or other structures are demolished, the infrastructure, such as sewers, drainage, electricity, and water remain intact. Permanence effects real estate, or the type of infrastructure. If you buy a piece of land in an area with no utilities, drainage or paved streets, it will most likely be worth less than a parcel of land that has this infrastructure intact and developed.

Area preference refers to the choices of the people in any given area. This is usually referred to by most people when they talk about real estate as, “location, location, location.” The location of a preferred area, for whatever reasons, is what makes values of homes higher. Conversely, the location of a nonpreferred area, for whatever reason, is what makes the values of homes less. 8000 square foot brand new homes on the coast of Long Island’s, East Hampton will be worth much more due to their area preference, over an area with 1200 square foot starter homes in the middle of Long Island, located next to a garbage dump.

The physical characteristics of land represent its indestructible nature, immobility and nonhomogeneity. Working backwards, we’ll start with nonhomogeneity. This simply points out that no two parcels are the same. Two pieces of land may be very similar, but every single parcel is different geographically because each parcel is located in a different spot. This includes two lots right next to each other. It is important to remember that parcels are created by subdividing land, so as one large parcel of 20 acres is subdivided, each individual lot becomes its own separate piece of land.

Land cannot be moved, therefore it is immobile. Even when soil is torn from the ground, the part of the Earth’s surface will always remain. It is important here to note how this physical characteristic affects real estate law and markets. Immobility of land is the reason why real estate laws and markets are local in nature.

The indestructibility of land simply means that it is durable and cannot be destroyed. It can be damaged by storms and other disasters, but it remains and weathers the changing times and will always be there. This is a main reason why land is talked about as being a sound investment.

So the basic characteristics of real estate include scarcity, improvements to the land, permanence, area preference, nonhomogeneity, indestructibility and immobility. Please note there is a big difference between land and real estate. Land is the the part of the earths surface, subsurface and air above it. Real estate is anything that becomes attached to land. So when you’re looking for investments, it is important to note the infrastructure of the area, the surrounding neighborhood and the preferences of the area or…location, location, location!



Source by Thomas McGiveron

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What is a Real Estate Release Agreement?

You don’t have to be a real estate expert to have heard of release agreements. A release is one of the most common types of contracts in the world of law. They are used to allow a company to use someone’s image for commercial use. However, a real estate release agreement isn’t quite the same thing. In most cases, releases are used by prospective buyers to release the seller from the mortgage or liens they have on a property so that the property is debt free. The form is extremely short and is often only one page when presented. Let’s take a look at a typical contract requiring a seller to obtain release of mortgage on a property.

The first part of the contract clearly outlines the date that this agreement is being signed, the names of both parties involved in the transfer of the property as well as any spouses of the members involved in the agreement. The second part of the agreement outlines the terms and conditions that the property in question is under. It goes over how much debt the property has attached to it and whether the property has a mortgage debt or a lien debt associated with it. It also outlines the purchase price of the property and how that purchase price can now be used to pay off any and all debt associated with the property. This type of form is used mostly to ensure that the seller will eliminate all debt from a piece of property when the sale is complete as agreed upon in the original sale agreement. Some people consider this form to be a bit redundant, but you can never be too careful when it comes to legal wrangling and property.

The final part of the agreement only requires the signer to include their names, the amount of the total debt still present on the property and finally, the amount that is being paid off. Much of the contract will simply be pre-typed text, often a template, that outlines the seller’s responsibilities once the sale is finalized.

If the buyer and seller of the property agree beforehand, a real estate release agreement isn’t necessary. It could be part of the original sale agreement that the buyer is responsible for paying off any existing debt on the property and not the responsibility of the seller. Since every legal agreement is different and many of them have their own unique provisions, some real estate release agreements can vary considerably from the one outlined here.

In conclusion, the real estate release agreement is a safeguard instituted by the buyer to ensure that a piece of property that has debt associated with it is paid off in full with the money gained during the sale by the seller so that when the final transfer of the property is finalized, it is debt free. It is vital that this agreement be included if you are buying property that has debt attached to it.



Source by Mark Warner

Make Easy Money Online: Become a Commercial Real Estate Property Scout

There are lots of ways to make easy money online. I am sure you have seen many of them in your email inbox.

One opportunity you may not be aware of is becoming a Commercial Real Estate Property Scout.

What’s a Commercial Real Estate Property Scout?

It’s a person who finds property for investors which meet a specific acquisition criteria.

Here’s the deal: This opportunity has nothing to do with sales, data entry, or any of those other possible questionable online business opportunities you may be aware of.

A Property Scout uses the Internet to search real estate listing databases for properties which meet the investors criteria. There are literally hundreds of these databases, many of which are free to use.

Advantages of the Opportunity

There are many things which make this opportunity attractive.

First, the price to get involved is very modest. It’s under $100 dollars.

Second, the money is really good. Frankly, there’s no comparison between what you can earn doing this and all the rest of the opportunities combined. It truly is one of the ways to make easy money online.

You can really earn hundreds of thousands of dollars a year.

Third, the support the company offers is incredible. While they won’t handhold or baby sit you, they will provide the weekly training, personal direction and weekly Q&A so that you can be successful–that’s more than any of the other opportunities do.

The fourth thing, is that you really can do this from home. There’s no travel involved. Plus it really only requires about twenty hours a week of work on a consistent basis.

The best part for me is that the company, Maverick Real Estate Investments, isn’t one of those schlocky companies promoting the next business opportunity. It’s real. And they sincerely want to see you successful because the big money for everybody involved is made when you find a promising property.

They’re committed to training you to be successful at it.

Maverick Real Estate Investments is in the commercial real estate business. That’s their purpose. And they’ve set up this business opportunity, so that they can attract people to help them find properties which fit their profile for acquisition.

It makes perfect sense if you think about it.

Disadvantages of the Opportunity

Are there bad points? Yes, a small one. But you really can’t blame the company for it, it’s just the nature of the commercial real estate industry.

If you need to make money right away, this is not the opportunity for you. Patience is key. While you can realistically make six figures and up a year, the fact is it takes time to find a property the investors want to acquire. It has to fit their profile (which they’ll thoroughly train you in).

And even when you find a property that meets their profile, they need the time to do whatever it takes to turn the property around which could take as long as 18 months to do.

But still, you have to admit it’s really good money. And let’s face it, you were to go into business for yourself, it would take that long AT LEAST to turn a modest profit–and nowhere near the money you’d earn as a Property Scout.

Now, they do offer an interesting way for you to get paid faster. But I wouldn’t recommend it, unless you really needed the money. You can get paid $15,000 when they buy the property and $15,000 again when they sell the property. It’s good money, but they prefer you to be partner with them and pay you when they sell the property and there are profits to be dispersed. It eases their cashflow.

Summary

In nutshell, this opportunity is legit. It’s lucrative. People ARE making money–and a lot. And it’s a profession which you can easily do from home using the Internet. Although it’s not perfect, it’s one of the few easy ways to make money online which is realistic and easily doable.



Source by Yolanda Bishop

Evolution of Green Real Estate Properties

The ideologies of the buyers in the real estate industry have been drastically changed over the years. All they need is eco-friendly or environmental properties with required facilities. Some of the environment friendly features are:

Use of renewable energy sources

The current trend in the market is demand for eco-friendly properties. Use of solar energy in water heating appliances, air conditioners and inverters can attract many buyers. This kind of energy sources can reduce their E-bills.

Rainwater collectors

Rainwater harvesting is effective way of storing rainwater for domestic usage. By using this method in our home, a large scale of water scarcity can be reduced.

Use of wooden furniture’s

Consumers are considering organic materials like wood and bamboo to be used in interior furniture. Plywood made from wood chips and window treatment, which include bamboo shades are some of the organic designs evolving in the green properties. Wooden furniture can add warmth, richness, comfort and finesse to the household area.

Natural landscaping

It is one of the important factors for the green real estate property. Properties, which have native plants and trees growing in and around the surroundings, have much demand among the consumers. A property, which has artificial grass lawns, requires lot of water to be supplied whereas native plants and trees require only seasonal rainfall to grow. Plenty of water can be saved by having natural growing trees and plants.

Eco-friendly interior insulations

Interior insulation in home is necessary as it affects the room temperature. Use of eco-friendly insulations with wooden chips, cotton, small broken pieces of stones and rocks, newspapers, cellulose insulation can reduce the noise and green house gas emission. Natural insulations have a low embodied energy and are fully disposable/recyclable at the end of their life.

Due to the increased demand in green real estate, many firms have started to promote their properties as eco-friendly homes. Buyers are showing more interest in having energy efficient products and systems in properties. Many financial institutions and private sector firms are investing huge money in green real estate predicting its demand in the future. According to government policies, investors who are investing in this sector pay fewer taxes compared to commercial sector investing. Green building construction has become increasingly popular and construction of such buildings has been a great challenge in long run. A green building is setting up new avenues in sector and increases the talent among the architects, environmentalists and suppliers.



Source by Rehman Shaik

Energy Performance Certificates For Houses In Belfast, Northern Ireland

The Energy Performance Certificates (EPC) are legal documents often needed for the sale of newly constructed or existing houses in Belfast, Northern Ireland. You will find this information everywhere on the internet.

If you are a homeowner and you are selling your house, there are essential details that you should know about Energy Performance Certificatesfor houses for sale in Northern Ireland. This article will provide answers to all the quintessential and frequently asked questions about EPCs.

What Do the Energy Performance Certificates Show?

The EPC an official document that indicates the rating of building in regards to its energy efficiency. It also records the carbon emission of the building. It shows the energy efficiency of building in a range of A to G. A house with rank A indicates that it is very efficient, while rank G shows it is the least efficient. It also includes recommendations for improvements and their approximate costs.

When Is an Energy Performance Certificate (EPC) required?

The Energy Performance Certificate is a legit document required for houses in Northern Ireland. Energy Performance Certificates are needed before a building is sold or rented out. Energy Performance Certificate is the first requirement if you are marketing your property for sale or to let. You must provide an EPC and recommendation report to any prospective buyers or tenants.

What Does the Law Say About EPCs and How Long Are EPCs Valid for?

The Government of Northern Ireland introduced Energy Performance Certificates (EPCs) for houses on the 30th of June 2008. On the 30th of December 2008, the Northern Ireland Assembly passed a law and EPCs became mandatory for marketed dwellings.

Only Accredited Domestic Energy Assessors can produce valid Energy Performance Certificates. They will enter the details of the Energy Performance Certificates onto the Northern Ireland register. You can access a copy of your Energy Performance Certificate through the EPC search facility on the EPC NI Register.

Each EPC is valid for ten years. You can use EPCs many times during these ten years. But after that, it will no longer be applicable. If you do not have an EPC of your house you may risk a fine.

What Are the Penalties for Not Having an EPC?

If you do not have an Energy Performance Certificate for your building, you may could be fined. The EPC requirement is policed by the District Council. A fine of £200 to £5000 though as of November 2020 no homeowner is known to have been fined.

If you do not provide your client with a copy of EPC, they can register a complaint against you.

Sources:

https://www.finance-ni.gov.uk/articles/energy-performance-certificates

https://www.nidirect.gov.uk/articles/energy-performance-certificates

https://www.belfastcity.gov.uk/epb#412-0

How to Buy Commercial Real Estate Property

Every few years, the real estate industry suffers from a crash that leaves small and mid-sized business with a dilemma: is it better to own or to rent a commercial property. Buying commercial property is a complex business, which makes it difficult for experts to maximize their investment value. There is no one-size-fits-all strategy. The following guide takes a realistic approach to solving the dilemma of whether you should buy or rent a commercial property.

Deciding to Buy versus Lease

While weighing your option, you should understand the risk involved. Given below are some of the involved risks:

1. Location may backfire

You probably have heard the saying “today’s hot can become tomorrow’s not.” This common saying applies to commercial properties Trendy locations have a high chance of quickly becoming worthless. Even location that do not seem trendy upon first appearance have the chance of “going out of style” like a trend. There is a possibility that market may bust, thus making possibly any area you choose to become undesirable.

2. Loss of liquidity

It often is not easy to sell your property. A business that owns the piece of real estate needs their real estate to be worth some money to at least some thing that, if needed, can be converted to cash.

3. Tenuous cash flow

If you are business that owns property that is being rented out, you cash flow will be compromised if a tenant stops paying rent and your property requires unexpected, expensive repairs.

Assembling a Team of Experts

Not everyone is a commercial real estate expert. Therefore, it is important to get connected with team of experts who can help in determining the right locations, the right time for buying and selling, and the nuts and bolts of the deal. To create an expert team, you may require the following people:

1. Accountant: He or she can help you analyse the tax and operating benefits and figure out what you can afford.

2. Lawyer: He or she can negotiate with the lender and seller on your behalf and help you to complete the transaction.

3. Commercial Broker: He or she can help you identify the potential properties that you can afford.

4. Mortgage Broker: He or she will sort out all of the financing matters for the property.

Identify the Right Property

There are several factors that need to be considered when making any real estate purchase:

a. Location: Location matters a lot, as the location needs to be convenient for your vendors, suppliers, workers, and, of course, your customers as well. To determine the proper location, keep in mind what kind of business that you are running in addition to how accessible the location is to the highway, rail lines and shipping lanes.

b. Physical Condition: The selected location’s physical condition should also be taken into consideration. Be wary of any wear and tear, environmental issues or any other potential liabilities.

c. Allowable Uses: Get the appropriate building for your business type. For example, manufacturing businesses require industrial space. Accounting firms require office space.



Source by Ashikur T Rahman

An Introduction To Real Estate Property Management Software

The real estate market is a booming industry. The success of the industry is a result of competition and the intervention of modern technology. Most people in the business prefer to use real estate property management software to stay ahead in the race. This software has been designed to cater to commercial and residential property, office buildings and apartments.

Real estate property management software is an effective and easy-to-use tool. This software helps people understand the real estate business. It is a quick response application that can store each detail of every transaction. This helps study non-payments and full-payments of rent, and maintains a detailed report of rent receipts and invoices.

Property owners are able to key inputs as and when required. The secured system is intelligent and allows changes from authorized personnel. Real estate property management software can evaluate an unlimited number of properties and units simultaneously. The software stores detailed data related to rent payments for all individual properties. This systematic approach eliminates any problems due to taxation.

Real estate property management software generates automated reports in cases of wrong payments and non-payments. The software does away with the practice of owners waiting for rent payments. All maintenance expenses or any extra revenue statements are regularly updated. The software also stores tenant information.

Residential property managers must select property management software that is most suited for their work. These applications are available with one-month money-back guarantees.

The residential property management system is considered to be time- and cost-effective for a manager and resident. The application can create a personalized website for an individual company in a relatively short time. This allows prospective and existing customers to visit the web site. This is a convenient method to view pictures of property, pay rent and submit maintenance requests.



Source by Josh Riverside

Real Estate Investing, College Housing Properties

Are you completely new to or just getting your feet wet with real estate investing? I’m a Realtor, my friends and I watch HGTV. Let me tell you, there are so many ways to invest in real estate. I think many would-be real estate investors watch shows on house flipping and mistakenly gauge the process. It’s more work than most investors are up for. Doing your own repairs might save money, but many investors aren’t general contractors.

In conversation, friends and clients interested in real estate investing often ask me where to begin. I ask them if they’ve thought about college housing for rental income.

Some that would don’t have the funds needed for renovations. That can be an issue, but it’s not one that the average person can’t overcome. FHA loans have guidelines and restrictions on lending to investors. You can have two non-investor residential loans in Ohio. The properties must be at least 50 miles apart. There are FHA loans for investors, and a slightly higher interest rate. FHA 203k loans are for distressed properties and include up to $35,000 for repairs.

The great thing about FHA loans, they only require a 3.5% down payment. You should know, loans with less than 20% down payment require PMI, or Private Mortgage Insurance. This is a premium lenders charge and a Federal regulation that protects lenders in the case of borrower default.

Investors need to understand, when you are financing you aren’t allowed to make the repairs yourself. It’s prohibited and Federal Law. This protects markets from decline as many buyers don’t complete needed repairs, dragging down property values. It’s also protects the lenders. If a borrower defaults, the lender would rather have a finished, updated property than a distressed eye-sore on their books.

Now you understand more about financing college housing property investments. Now let me tell you why college housing is hot for real estate investors. Rent is always going to go up. Getting a college education is expensive, not all students want to live in a frat house. Keeping up with current rent rates, but renting rooms for at or a little less than the going rate, will ensure good occupancy.

In Cincinnati, there are numerous universities and college campuses. An investor would have no problem finding potential Cincinnati properties for college housing.

Many students work their way through college, taking jobs near their education center. Some students really want to save on gas and auto insurance. It’s very attractive to them to find affordable housing near both school and work. Even better if they can walk, bike or bus to their destinations.

Advertising your college housing is easy and even free. Just post your rental properties at the schools. Talk to key figures like head of the debate team, the quarterback or university newsletter or blog.

I like to help new real estate investors, I have no problem will small private investors acquiring properties to utilize as college housing for rental income. What I don’t like are large real estate investing companies flush with capital that swoop in, purchase all the properties they can at discount and charge a premium to students.

There’s an interesting brewing debate over this. I came across an article “The Dorm Debate” on New Jersey Monmouth University’s student-run online newspaper “The Outlook”. In this article, college students are raising the question; should universities provide affordable college housing?



Source by Greg Hancock

6 Commercial Real Estate Myths

There are a number of misconceptions floating around in the market when it comes to commercial real estate and it becomes important to identify them. These misconceptions can deter investment and risk-taking behavior that is required in this market to be a successful investor.

You need considerable funds to start

This is one of the most common misconceptions in the real estate industry, you don’t need to be swimming in funds to invest in your first property. Banks don’t only look at your balance to approve your funding, they look at the potential profits of your deal as well. The more appealing the deal is the more likely you will be to get your funding, however, you don’t need to rely on just your banks there are always private money lenders who’d be willing to help out if you check out.

The numbers are too hard

These days there are plenty of software options in the market to do the legwork for you, you just need to know your figures and the software will compute the rest for you. The rest just boils down to you being able to interpret the figures to make informed decisions when it comes to your real estate needs.

Most commercial properties are advertised

Contrary to popular belief most of the available commercial properties aren’t listed in newspapers nor will you find any bandit signs advertising the properties of your desire. You will need to consult a real estate broker who has considerable contacts among investors and property owners alike to get a comprehensive list of all the available properties in the area of your interest.

Managing commercial property is much more of a hassle than residential property

Managing a property is no joke, but the hitch is that the proceeds with commercial properties is much more than that of residential properties. So one can afford to hire a management service that operates in your stead and takes care of all the management aspects of your property, including using their comprehensive list of vendors.

Good deals are difficult to find

No matter the market situation it will always be possible to find a good deal in the real estate market, there are always certain types of properties and other factors that make this reality a possibility. All this is dependent on you making a reasonable effort to make the deal happen though.

A single agent can fairly represent both sides

An agent will invariably have the interests of the landlord at heart and not the investor or the buyer, the agent will always have vested interests and therefore act as a dual agent in a way. So it’s always better to hire your own agent to represent your interests.

These are some of the common myths surrounding the commercial real estate industry.



Source by Shaik Arif

Buying a Property in Romania – Real Estate Law in Romania

If you are looking to buy a holiday or second home or invest in Romania, Transylvania or at the Black Sea and you are a foreign citizen/investor, there are few aspects you should know about the procedure an the costs for the acquisition of Romanian land or Romanian houses.

After 2012, foreign citizens EU citizens (non-Romanian) may purchase a home or apartment in Romania may freely buy and sell any Romanian property, without restrictions. Along with the sell price for the property, buying real estate in Romania has other costs associated with it.

If you have chosen to collaborate with a Romanian real estate agent/ broker you can expect to have an additional commission of approximately 2-4% of the price of the property. The local tax will be 2-4% of the price of the property. The signing of a contract must be witnessed by a public notary who submits it for certification by the Land Registry in charge of real estate records. The fees for the Romanian public notary is about 0.5-1% of the purchase price. You will also have to pay fees to the Land Registry (“Cartea Funciara”) to register the Transfer Deed. The Romanian Land Registry Fee for a purchase of a property will vary from 1-3% according to the length of time that the seller had owned the property and the property’s value.

The Romanian law on property states that Citizens of EU member states, legal persons incorporated in the EU member states and stateless people domiciled in an EU member state can purchase land in Romania only if the land is used for secondary residences or for secondary headquarters after a 5 (five) years term from the accession of Romania to the EU (starting with January 1st, 2012); only for the agricultural land and forest land 7 (seven) years term from the accession of Romania to the EU ( starting with January 1st, 2014).

But for the Citizens, legal persons and stateless people not from a EU member state, the Romanian legal system establishes that they can purchase land in Romania, under the conditions of international treaties between Romania and the states of origin on these persons, under a reciprocity basis.

In our point of view, a prudent investor will hire a Romanian lawyer/ a Romanian Law Office, who will liaise closely with the notary on the verification of the title, obtaining the Land Registry excerpt and the drafting of the agreement for the transfer of ownership of the real estate. This means that the Romanian lawyer will be solely acting for and is responsible to his or her client, whereas the notary will not have the same degree of responsibility to the purchaser.

Under Romanian law there are three basic rights to land and buildings such as right of ownership; usage rights as lease, usufruct, superficies; concession right. The principle of contractual liberty represents the key core of the property law in Romania.

Sometimes, an investor/purchaser can opt for closing a pre-sale agreement, by which the seller undertakes to transfer ownership to the buyer at a certain date in exchange for an agreed consideration. The content of the pre-sale contract will stipulate all commercial and legal conditions for the transfer of ownership, as conditions precedent to the final transfer of ownership. The closing of such pre-contract for purchase does not means the transfer over the property, but the stipulate binding obligations for the parties, in regard to, as example, damages or penalties set out in them, if the seller refuses to sign the final notarized deed of transfer at the agreed deadline.

The closing of the pre-sale agreement is to protect the investor/buyer from any possible purchase to other buyers and to matters regarding the fixed price and duration of a future purchase. In our point of view, it is a must that the pre-sale agreement to be concluded at a Public Notary and clearly stipulate the sale price and other clauses regarding duration of future purchase. In this case, it can be enforced in court on the buyer’s request as a deed to transfer ownership.

A sale agreement signed in Romania, according to the Romanian legislation will mandatory stipulate: obligations of the parties for the fulfillment of the sale contract, delivery and quality conditions of goods and/or services, terms, payment methods and payment guarantees, payment instruments and price insurance, contractual risk, as well as method of solving eventual litigations arising from the contract. Other required elements include the full name and identification details of the parties (for legal entities) and name of the person signing the contract (representing a legal entity).

Our team of romanian lawyers offer a wide variety of legal services in the real estate law http://www.lawyersinromania.com



Source by Simona Rotaru