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Real Estate Investment: 5 factors to look for before buying distressed property

However, there has been stress of cash flows among market makers. With pressure on sales and the Real Estate Act coming into shape, developers are struggling to re-align their business models as per the new norms. On the investor front, a number of them depended heavily on cash components for exiting their resale investments and are now left awry post the drive of demonetization. Given the current market conditions, property buyers are showcased with a range of opportunities across retail and office assets, single residential units, and even entire projects at attractive valuations. Smart property buyers can make the most of this opportunity. Some of the factors to keep in mind while buying a distressed property are as follows: 1. Leverage: With the current market scenario of increasing interest rates, a buyer must not over leverage himself for buying out the distressed asset. Any litigation against the property must be factored in as well. Distressed asset purchases should be done as an informed decision, which should be aligned with the investor’s risk appetite. An inadequately-researched decision of buying a distressed asset can lead to a massive financial setback and, in cases, even legal complications.

Buying Rental Properties To Guard Against A Stock Market Crash

One that came up recently - should I buy rental property to guard against a stock market crash? We know if the markets correct that dramatically, people would theoretically move to bonds, so the value of the bonds would go up. With the real estate market just as hot as the stock market, she would buy that rental home at the same time everyone else was trying to get into real estate. Truism #1: Investing in direct real estate may be appropriate in two situations. Truism #2: Be careful about going into a real estate investment with friends or family. Truism #5: Counting on a large portfolio of real estate to sustain your retirement plan is not very smart. People who counted on real estate income in 2009 ended up very stressed and losing their shirt, especially if they leveraged their properties. I have this gory real estate discussion with clients too often and decided as long as a real estate investment isn’t going to torpedo a financial plan, I don’t fight it much. They fear the markets when the market is in the doldrums and love the market when everyone is making money. Real estate is no different.

Here are the cities where the most people live alone

In any U.S. city, living arrangements run the gamut from friends and strangers living as roommates to domestic partnerships to single-parent households to the traditional nuclear families. More than 1 in every 4 households – 27.9 percent – are made up of a single individual. According to estimates from the U.S. Census Bureau, there are 21 metropolitan areas where more than one in every three homes are occupied by individuals who live alone. While these cities do not necessarily share a single defining quality, there are some common characteristics that may help explain why residents are more likely to live on their own in these places. Living alone means footing the bill for utilities and rent – or upkeep and mortgage. For that reason, it is not financially prudent, or even possible, for many. In cities with a lower than average cost of living, fewer residents may need to rely on a roommate in order to afford housing. More: Do you live in an ideal community? Nationwide, 48.1 percent of the 15 and older population are currently married. In the majority of cities with the largest share of people living alone, a smaller than average share of the population is married.

How to Use a Self-Directed IRA to Invest in Real Estate

Real estate is REAL. Rather than an alternative retirement investment, real estate can be a key vehicle for growing one’s IRA account. By researching real estate investments and sponsors, you can gain the confidence to make your own choices. Many of the traditional brokerages that hold IRAs and 401(k) accounts will not move the funds to non-traditional investments; therefore, you will need to direct the funds from your current account to an IRA custodian who works with self-directed accounts. Custodians such as Provident and IRA Services Trust Company have successfully worked with individuals to direct their IRA investments. What Are the Rules for Investing Directly in Real Estate? When the property sells, the proceeds will also go directly back to the custodian or to the IRA checkbook account and can be reinvested once another opportunity presents itself. What’s an Argument Against Using an IRA to Invest in Real Estate? Research the investment sponsor who will be managing the real estate on your behalf. If you go the self-directed route, you will still work with a custodian who places your funds for you.

Rental Rates on the Rise

Much like the housing market, the rental sector is showing no signs of a slowdown. According to the most recent CoreLogic numbers, which show that U.S. single-family rents were up 2.9 percent year-over-year in April, among some other noteworthy data points. This April’s 2.9 percent year-over-year increase is a 1.3-percent drop in the growth rate since the 4.2 percent peak, it notes. Low-end rental homes—properties with rents 75 percent or less of a region’s median rent—buoyed the index’s overall growth in April, SFRI says. On the other hand, rents for higher-priced dwellings—properties with rents exceeding 125 percent of the regional median rent—skipped ahead 2.7 percent year over year, the report shows. High-end rent growth tracked 1.1 percentage points higher than it did in April 2017, while low-end rent growth was 0.2 percentage points lower than April 2017. Growth also differed considerably across metropolitan areas. Las Vegas posted the highest year-over-year growth in April, at 5.9 percent, trailed by Phoenix (5.5 percent) and Orlando (5.3 percent). Both cities realized robust year-over-year job growth that month, inking gains of 2.8 percent and 3.2 percent, respectively. Honolulu was the sole metro among the 20 assessed to display a dip in the rent index, falling 0.3 percent year over year in April.

What the Heck is Mortgage “Note” Investing? The Start of a Journey

Have you ever heard of people talking about note investing? Probably not! It is not a topic that you are discussing over coffee or at a social event.  Would you be...

More home builders are targeting millennials

Subscribe to our RSS feed to get the latest realty news. You can get our headlines via email as well, or follow us on Twitter. With millennials entering the housing market in growing numbers, they’re expected to take the lead when it comes to new home buyers too, according to Census Bureau data analyzed by the National Association of Home Builders. Millennials are also the U.S.’s largest demographic, and more than 70 million are likely to want to buy a home in the next few years, the NAHB said. “And contrary to conventional wisdom, this generation is in the market for single-family homes in the suburbs as they look ahead to raising their families.” To cater to these millennial’s demands for new homes, many homebuilders are looking to increase the amount of entry-level homes they’re building. However, challenges exist around rising construction costs and the limited availability of lots to build on. As a result, some construction firms are struggling to build homes that are affordable, yet also cost-effective. The market for town homes slumped badly during last decade’s recession, but has been growing steadily since 2009. Town home construction grew by 7 percent in 2017 compared to the year before. The average millennial desires a three-bedroom, two-bathroom home with plenty of outdoor space, flexible multipurpose spaces and luxury finishes such as quartz countertops.

Dos And Don’ts When Reinvesting Real Estate Returns

But when it comes time to sell these properties, are there right and wrong ways to roll over the proceeds to new real estate investments? Hornstock bases his insights on his firm's two decades of experience in partnering with real estate investors to maximize returns tied to real estate investments. His firm specializes in providing services that add value in leasing, investment sales, property management, construction management and advisory, and by organizing opportunities for its clients to participate in the ownership of real estate. "First things first, you have to understand the goal of reinvesting," Hornstock says. The sale of a business or an investment property normally requires the seller to pay tax on the gain at the time of sale. The seller can postpone paying taxes on the gain if the proceeds are reinvested in a similar property as part of a qualifying like-kind exchange. If your grandfather bought a property in 1950 for $100,000, and it's been kept in the family since, and you sell the building for $1 million, you'd normally have to pay taxes on the gain of $900,000. New under the revised tax laws is the qualified business income deduction. Timing and location In Hornstock's view, worrying about when to reinvest makes no sense. Doing your due diligence, getting comparables, you can do that in five minutes but you still have to be able to process the information, because there's a guy in New Delhi doing the same thing."

TEDxEvansville is back, here are this year’s speakers, topics

— Tickets remain available for TEDxEvansville, scheduled for 1-5 p.m. Friday at the University of Southern Indiana Performance Center. Eight speakers are featured at this year's event, which has a one-word theme: "Connect." This year's event is the fourth in Evansville. She is also the mother of an only son who passed in 2017 from complications due to a substance use disorder. Hall is a student at Butler University studying history, political science and Spanish who is from Evansville. His undergraduate research has focused on the importance of public memory and how communities like his hometown remember and commemorate historical events and actors. Caballero holds a Master of healthcare administration from the University of Southern Indiana and is an account executive for Medical Services of America. Caballero has served the needs of the poor through international medical missions, developing multidisciplinary strategic population health plans in the Evansville community and improving Alzheimer’s Dementia care in Southwest Indiana. An Evansville native, Johnson is the founder and executive director of a nonprofit organization called Young & Established, created in 2013. Prior to moving to Evansville, Philip worked for the City of Indianapolis where he managed community and economic development projects in coordination with the city’s Quality of Life Planning initiatives.

Real Estate Investment: 10 things to check before buying a home

However, as it is one of the largest investments one can make, it is imperative for home buyers to carefully evaluate every single detail, from costs, government policies, taxes to the loan plans. Days are gone when the home buying decision was largely influenced by real estate agents. In present times, the investing decision of the buyers is majorly driven by the latest amenities which the projects offer. Also online, one can easily gather information about property prices, processes of acquiring a property, documents required during the transactions. Hence, before making a final investment, we need to consider several factors such as the residential location, amenities, views, infrastructure status, surroundings, proximity to commercial and recreational centres, transportation facilities, potential capital appreciation, developer, and most importantly, the budget. Investment Purpose Buying a property is an attractive investment proposition. Additional Costs After a buyer completely understands the crux of the property acquiring cost, he also needs to consider the post occupation cost. There needs to be a provision for the later costs which accrue from various expenses like fit out costs, interior costs, maintenance costs, property insurance if any, mortgage payments in case of loan availed. This enables the customer to get a good insight into the project before making a purchase decision. Customer Protection Implementation of RERA has made the industry extremely transparent and ensures customer protection.


Stuck in the rent vs buy dilemma? Consider the local price-to-rent...

Price-to-rent answers affordability questions If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. Verify your new rate (Oct 29th, 2018) Where buying a home’s more affordable According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers. The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting. “For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary cash for a down payment and have figured out the rest of your financing in such a market, go ahead and buy a home.” Other cities with low price-to-rent ratios include Toledo, Dayton and Akron, Ohio; Syracuse, New York; Davenport, Iowa; Hartford, Connecticut, Cedar Rapids, Iowa; and Lansing, Michigan. “In most of these locations, the median property price does not exceed $250,000, which is below the level in many other top markets at the moment,” Andreevska said. Home prices in the area average $1.4 million, while the average monthly rent is $2,780. “Some of these cities are infamous for the high real estate prices there, such as San Francisco, New York, El Paso, and Irvine,” Andreevska said. In such expensive markets, it makes sense that renting is the better option or even the only affordable one.” Show Me Today's Rates (Oct 29th, 2018) Get today’s mortgage rates Looking to buy a home in one of the nations low price-to-rent markets?