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Foreign Investment in the U.S. Luxury Real Estate Market Reaches a New High

Foreign investments into the United States luxury real estate market have hit a new high, according to a recent market report from Beauchamp Estates in association with Leslie J Garfield & Co. According to the National Association of Realtors, 44 percent were all-cash purchases. “Data from the National Association of Realtors shows that just five overseas countries dominate investment into U.S. residential real estate, accounting for 50 percent of all transactions,” says Jed Garfield, president of Leslie J Garfield & Co. “They are Canada, the United Kingdom, China, Mexico, and India.” Perhaps most interestingly, the report found that around 40 percent of overseas buyer transactions for properties above $2,700 per square foot were concentrated in three major hubs: Miami, Manhattan, and Los Angeles. Miami Beach, North Bay Road, and Palm Beach ranked high among house hunters—but island destinations such as Fisher Island and Bay Point also proved popular because of the associated privacy and security. Gated or secure waterfront homes were the most sought after, and buyers generally purchased a home that was just over 13,000 square feet. “Miami is a leading hub for overseas buyers investing in U.S. luxury real estate,” says Gary Hersham, managing director at Beauchamp Estates. “Miami is extremely popular with high-net-worth buyers from South America—Colombians, Brazilians and Argentinians—with other key overseas buyers being the British and investors from the Philippines.” In Los Angeles, buyers snatched up properties in coastal areas such as Malibu or along the Pacific Coast Highway, as well as in ritzy neighborhoods such as Beverly Hills and Hollywood Hills West. “In Los Angeles, wealthy overseas buyers tend to purchase in gated communities and prefer mansions or family houses located on large plots,” says Hersham. “Our clients from Britain, France, and Israel who make enquiries about Los Angeles tend to work in the film industry, the media, finance, or tech sectors, and their Los Angeles property serves as both a holiday home, business base, and investment.” And in Manhattan, house hunters generally purchased an approximately 9,500-square-foot property on the Upper East Side, Tribeca, or Greenwich Village. According to the report, homeowners looked for duplexes, penthouses, and townhouses, and prioritized properties that were close to Central Park.

Advantages of Buying Turnkey Rental Properties

Advantages of buying turnkey rental properties are many especially for new buyers. Turnkey properties are also great real estate investment vehicle for investors who want a long term sustainable passive income without any hassle. A turnkey rental property is a good source of income to own because it provides a quick return on investment and a stable income with no work to be done by the owner of the property. For that you need to find reputable turnkey providers, which are real estate companies that find a property in a proven rental market with high ROI, rehab the property, and also place it in the hands of a local turnkey property management company. Advantages of buying a turnkey rental property is that the turnkey property companies do all the repairs before putting the properties out for sale. Another advantage of buying turnkey rental properties is that the turnkey investment companies also take the responsibility of finding qualified tenants. As an investor you need to put money into the best and most sustainable real estate markets, the markets in which property prices are steadily rising. Buying turnkey rental properties gives you an opportunity to expand into different real estate markets. It is always advantageous to not have all your turnkey rental properties in one given market. What more do you need from an investment?

You Think Your Landlord Is Bad? Try Renting From Wall Street

Her landlord, the Wall Street rental behemoth Invitation Homes, was raising her rent to $3,000 a month, an increase of more than $800 all at once. She’s one of hundreds of thousands of Americans who—whether they know it or not—are now renting from Wall Street. In Fulton County, Georgia, the study concluded, large firms with Wall Street backing were up to 19 percent more likely to issue eviction notices than smaller firms. Whereas rents for new tenants had gone up by 1.9 percent each year under the old owner, Starwood Waypoint suggested this could be increased to meet its corporate average of 6.2 percent. In a 2017 earnings call with investors, Invitation Homes reported that pet rents accounted for $1.5 million in additional corporate income. “This is taking the idea of housing as an investable asset class to a whole new level.” In just four years, single-family rental companies have initiated more than 30 securitizations backed by at least 100,000 homes, helping to resuscitate the market for private-label securities. Given the success of the market, some observers expressed dismay when Blackstone revealed in January that Fannie Mae was backing its next single-family rental securitization, to the tune of $1 billion. The NCST’s Gordon says she’s encouraged by the initial affordability numbers of Freddie’s deal, but wonders whether the rents will still be affordable in five years, given single-family landlords’ reputation for hiking rents rapidly. In California, where many Wall Street landlords report especially steep rent increases, tenants lack even the local protections afforded to apartment-dwellers. Soon after, the company called Barbee and told her that the initial increase was a mistake—and that she could remain in the house for another six months, at the current rent, due to her recent tragedy.

A Guide to Buying Real Estate in Costa Rica

This is where one of the restrictions mentioned before come into place regarding foreigners investing in real estate property. Titled Property: This is the most common form of real estate investing in Costa Rica, all information for the property should be available and provided by the seller and verified at the public registry and corresponding municipality. Properties in condominium and gated communities: When buying property in a gated community, we may be talking about individual residences or townhouses, apartments in vertical buildings, or condos; this has become a very popular option in Costa Rica particularly because it offers advantages such as private security, common areas (pool, green areas, etc.) Purpose of the Property: As we just mentioned in the paragraph above, you must be very clear on what the purpose of the property is before you purchase it; if you are relocating to the country permanently then there is usually no problems, but if you interest in buying real estate in Costa Rica is to make an investment then you need to be more careful and take into account other aspects; for instance, if you want to buy property to use it as a vacation rental make sure the property can be used for this purpose, in the case of condos and gated communities in the city some have restrictions in this sense, consider maintenance and if you are not going to be in the country to oversee things, then a property management service is a good option; if you buy land for development do not leave it unattended, squatters may take advantage of this. Terminology: Some of the terms you will hear when you are going through a real estate purchase property in Costa Rica are: Registro de la Propiedad: Public Property Registry, basically the government institution where all records are kept for properties. The survey plan for a property is recorded at the Public Registry. Taxes: Don’t just take an impulsive decision when you are buying property in Costa Rica, the best thing to do is consult with a real estate attorney or tax expert regarding the exact amount your will have to pay on property taxes annually, generally, taxes on properties in Costa Rica are a lot more reasonable than what you’d pay in North America. Property taxes are calculated as a 0.25% of the value the property has in the public registry. For the most part it is safe to buy real estate in Costa Rica, the country’s political and economic stability makes it a very attractive country to invest in. If it’s a gated community or a brand new project getting details on the construction of the house should be easy, get details on the developers and construction company and past projects; if it’s an individual residence get as many details as possible from the seller, blueprints, etc.

Commercial real estate in the age of #MeToo

None of the firms had an equal ratio of male to female brokers, TRD’s analysis found. No other woman was involved in the transaction, Lee said. The women that have made it to the top also have an added pedigree of sorts, according to Stacy Vierheilig-Fraser, senior managing director at brokerage and property management firm Charles Dunn. “I think you’re going to see many more women as brokers in the next five years,” Schatz said. Westside Estate Agency had the lowest ratio of females out of the top local residential brokerages with nearly 42 percent, a TRD analysis showed. About 50 percent of the brokers at the Agency and Hilton & Hyland were female, while Douglas Elliman’s representation of women exceeded 57 percent in its L.A. office. “The residential real estate companies are primarily owned by men,” Rey said. “Women need to form alliances where it’s not a covert industry where only one woman can make it.” Poirier has executed this by hiring several women for her team. That means using words like “collaborative” and “compassionate” in recruiting ads, according to Brokers + Engineers’ Renshaw. “Women are great in commercial real estate — it’s just that someone has to tell them,” Renshaw said.

Redfin (RDFN) & Its Peers Financial Contrast

Redfin (NASDAQ: RDFN) is one of 64 publicly-traded companies in the “Real Estate Development & Operations” industry, but how does it compare to its rivals? We will compare Redfin to similar companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, valuation, dividends and profitability. Insider & Institutional Ownership 37.9% of Redfin shares are owned by institutional investors. Comparatively, 35.9% of shares of all “Real Estate Development & Operations” companies are owned by institutional investors. 41.1% of shares of all “Real Estate Development & Operations” companies are owned by insiders. Analyst Ratings This is a breakdown of recent recommendations for Redfin and its rivals, as reported by MarketBeat.com. As a group, “Real Estate Development & Operations” companies have a potential upside of 38.42%. Earnings and Valuation This table compares Redfin and its rivals gross revenue, earnings per share and valuation. Redfin Competitors $438.91 million $33.86 million 1,287.80 Redfin’s rivals have higher revenue and earnings than Redfin. Profitability This table compares Redfin and its rivals’ net margins, return on equity and return on assets.

How to Invest in Real Estate with Few Hassles

Although being a landlord is a great way to invest in real estate, it comes with hands-on hassles that not everyone wants to deal with. Real Estate Investment Groups Real estate investment groups can be described as self-created mutual funds for real estate investing. Often, a real estate investment group grows out of a real estate investment club. There are many different types of real estate clubs. Others require all members to contribute financially to a club fund and then the club votes on what investments to make as a whole. If the property is performing poorly financially, it’s much easier to just walk away without throwing good money after bad money. Real Estate Investment Trusts Real estate has had value ever since man found a way to settle down to farm it. Because they are trusts instead of corporations, they are required to pay out 90% of the taxable profits each year as dividends to shareholders. When REITs started heavily buying into real estate at the bottom of the market, knowledgeable investors bid the share prices up. Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for 10 years.

The return on investment of intelligent buildings

The commercial property of the future, like its residential cousins, will be a building with which you can have a two-way conversation, incorporating each subsystem of a whole building system. – and had the authority to make real-time, cost-saving decisions and recommendations of future opportunities to owners and managers – instantly. There are three important takeaways for building owners and property managers: Invest in building your company’s IQ in this space. Building managers must understand the changing technology environment and the economics well enough to hire the right teams to plan, budget and manage the project, while identifying the costs and benefits that need to be transcribed into financial pro formas in a way that demonstrates a return on investment. Much of the data captured and analyzed by smart buildings will be tenant generated, and this is where intelligent buildings really differentiate themselves from merely energy-efficient buildings. It will be easier to identify and take advantage of low-hanging fruit energy savings, because automated and optimized systems will make it so. Ultimately, what is the return on investment for smart buildings? For most building owners, while the benefits are real, the cost now may yet be too high. I recommend starting with one smart system – HVAC, for example, and build on interoperability, system by system. Building management soon will be a two-way conversation with you and your BMS.

What Are The Tax Benefits of Investing In Real Estate

The important benefits of investing in real estate are increase in property value due to appreciation as well as good cash flow in the form of rental income. When you get rental income from the rental of a residence unit, there are some expenses you may deduct on your tax return. IRS considers that you are exchanging you old property for another real estate property. In order for the IRS to view the home as your primary residence, you should have owned it for five years and lived in it for at least two years. Using a real estate agent can help you a lot in real estate investing. What Does a Real Estate Agent Do For a Buyer A real estate agent will help the buyer in finding the right property at a good price which is a critical factor to succeed in real estate investment. Turnkey rental property investing has really led to increase in the number of people turning from stocks to real estate in the US. Another benefit of investing in real estate vs. stocks is how you can use debt. Other cities that made most analysts top ten residential real estate markets include Dallas, Nashville, Raleigh-Durham, and Salt Lake City. This year is shaping up to be a very strong year for investors who are in the residential real estate market and there are many markets in the US to choose from.

Financing turnkey rental properties

We all know that in a real estate investment “cash-is-king.” But, if an investor does not have that much cash in hand, finance is definitely required to meet the purchase price of an investment property. There are many options available to finance turnkey rental properties. What is a Turnkey Property A Turnkey Property or a turnkey rental property is a real estate investment property (mostly a house or an apartment) that an investor can buy and rent in a short period of time. Financing Turnkey Rental Properties If you need financing to purchase a turnkey rental property, you must pay attention to the information given below. In that case if you take 10% of it out and invest into some turnkey rental properties in some of the fastest growing real estate markets, it may be a good investment for a passive rental income. Financing Turnkey Rental Properties With Loan There are multiple factors and conditions that affect on getting a loan for the purchase of a turnkey investment property. Types of Mortgage Options For Financing Turnkey Rental Properties A fixed-rate mortgage means your mortgage interest rate and your total EMI of principal and interest will stay the same for the entire term of the loan. Can FHA Loans Be Used For Financing Turnkey Rental Properties You can generally rent your FHA home if you have lived in it long enough. Lenders Financing Turnkey Rental Properties Finding lender for financing turnkey rental properties is a not a tough job. Another top-rated direct mortgage lender for conventional, VA & FHA home purchase or refinance loans is The J.G.


4 Reasons Why Real Estate Wholesaling Doesn’t Work for Newbies

If you’re new and haven’t truly started, or new and are not having success, you may find yourself in one of the following categories: Your skeptical You’re afraid to make a mistake You’re misinformed or over-informed You’re Inconsistent Let’s briefly dive into each one of these. You’re Skeptical Something very common in real estate wholesaling: You start to believe it’s to good to be true. You’re Afraid To Make A Mistake This is all psychological. People who are afraid to make mistakes can talk themselves out of doing anything. By not being afraid and doing the little things consistently, you will luck into perfect deals. If I make a mistake (after doing my research of course) and the end result is not what I planned, then I find where I went wrong and try again. When there’s too much information, newbies begin focusing on all the information — and not application. You’re Inconsistent This is a major momentum killer in real estate wholesaling. You get started doing something and then stop. You get started again and then stop.