Real estate bought and managed properly is one of lowest-risk asset classes available.  The problem is: most people do not know how to buy real estate properly and end up losing money.

Two Rules

There are two simple guidelines that constitute a good real estate purchase:

1) You must be “all in” including purchase, rehab, and closing costs for less than it will be worth after the rehab.

2) It has to cash flow after all monthly expenses including maintenance and occupancy.

In short, it has to have equity and cash flow.

Each real estate investor has his or her own preference on what kinds of margins they are comfortable with.  I am comfortable with equity above $15,000 and cash flow above $150 a month.  Those margins add protection against market volatility.

Sub Market

Another thing to consider when reducing risk in real estate is the sub-market.  A strong real estate market is located in a city with low unemployment and a growing population.  For me, investing in Texas real estate and the surrounding areas in the midwest is what I’m doing.

I would’t recommend investing in Detroit real estate even if it did have  a ton of equity and cash flow for this reason.  I would also stay away from some of the more volatile markets such as California and South Florida.

Investing in states where the highs don’t get too high and the lows don’t get too low is a good recipe for reducing risk.

Conclusion

In conclusion, investing in real estate is not risky if you buy with equity and cash flow in a stable market.  Most of the real estate investing horror stories come from volatile markets where people were investing based on speculation without equity or cash flow.

The logical place to stay is in a hotel. Why not, they are usually easy to find, centrally located and almost always have vacancy. For instance, staying at Lincoln City, a popular vacation site at the Oregon Beach, there are many hotels to choose from. Some offer ocean views, beach access or breakfasts. But as a smart consumer you should consider what you are getting for your hard earned money.

When staying at the beach most people want a hotel with beach access or and ocean view that is affordable. A hotel with a beach from or ocean view can run anywhere from $80.00 a night up to $200.00 a night in Lincoln City. Even if you decide you do not need a beach front or ocean view room, hotels can still range from $50.00 to $100.00 a night. Everyone has different criteria, but I think we can all agree that a hotel needs to be within your selected price range.

Besides Oregon and the West Coast, many vacationers are discovering hidden gems back East. Smokey Mountain Family Vacations has some really sweet, out of the way and affordable get-a-way packages.

Let’s look at what we get for the price. Most hotels try to lure you by offering continental breakfast. Some people think they will save money by having a continental breakfast, unfortunately this is not always the case. Typically a continental breakfast offers donuts, pastries, coffee or juice. Now I don’t know about you but this is not enough breakfast for me. When I am on vacation I want pancakes, waffles, bagels and many options for drinks. If you eat the continental breakfast most likely you will be hungry quickly and you will need to buy more food.

Having a clean and quiet hotel room shouldn’t even be a want, it should be a must have! Let’s examine this advertising a bit. Every hotel I have stayed at, house keeping usually comes around nine in the morning. A quiet room, now how can this be when you can almost always hear people running the halls all hours of the night and you can usually hear your neighbors TV. This is not my idea of a good nights sleep. Then of course check out is usually eleven, so after you have been up most of the night, you need to get up early enough to check out and miss house keeping, so that means your alarm must go off at eight in the morning. I don’t want to feel rushed while on vacation, I am sure you feel the same way especially after you have spent a lot of money on a hotel you think is going to be quiet!

So where can you and your family stay, this is the great mystery. I have your answer, vacation rental homes. There many vacation homes for all budgets. Typically they range from $100.00 to $250.00 a night depending on what your wants and needs are. Most people want to know the benefits of staying in a vacation home and here you have it! In a vacation home you can bring your own food and cook therefore saving you money clear across the board by not eating out for every meal. House keeping comes when it is convenient for you. All you need to do is put the key back in the lock box when you head out and then house keeping will come. A vacation home offers you more private, candid time with your family, and the best part, it is quiet!

A vacation home might cost you a few extra bucks but in the long run it is worth every penny. You don’t have to worry about so many things that, spending the extra money just makes sense. You need to decide what is most important to you, is it saving a few extra dollars or is it spending a peaceful, relaxing vacation with your family, the choice is yours but hurry your sanctuary awaits.

Many people make a living out of buying and selling real estate, and it can actually be compared to many of the other common forms of investments such as mutual funds, bonds and stocks. However there are two main differences. It’s possible to buy and sell other investments very quickly at the market price. Buying and selling real estate takes much longer, it can take months to sell. This means that there are some important considerations when buying or selling property.

Similar to other investments you should try to sell at a time when the market is high and then intend to buy it back when the market falls in price. This is easier with other investments, however it can be much more interesting (difficult!) with the housing market.

Most stocks are the same, it’s possible to compare them fairly easily. Real estate is much more unique. Every house is completely unique. There are also substantial entry and exit costs, when selling you need to find a new property to move into, you also need to wait until there is a house which you can afford to buy in the future. The costs of buying stock are minimal, whereas with the housing market they can be quite large.

The real estate market should be treated as a long term investment tool. It’s not possible to buy and sell very quickly in order to make a fast buck. Housing is a tangible product and is much less risky than the stock market.

There are a number of different ways in which you can improve the profits which you make from buying and selling real estate. One is to buy property at very low prices. This would be possible by looking at foreclosure properties, or looking at houses which need a lot of repair to get them up to scratch. If you’re a patient person then you will probably be able to find many foreclosures which are for sale at up to 35% below the market value of the area. You can find out about these by looking in local newspapers and on websites.

It is also possible to look at areas where sellers seem to be leaving, but it is still possible to sell property there. For example previously depressed neighborhoods in Manhattan are now quite valuable. Other cities have experienced similar situations. Try to guess which area will be the next up and coming thing by seeing which has the most money spent on it for regeneration.

If you’re good at DIY or know a friend that is then you could consider buying property which needs fixing up for it to be profitable. A house with a leaky roof and water damage could be 10% below market value or more.

It is possible to make a profit from the real estate market, even if it’s starting to slow down recently. It’s only really possible for people that are willing to be patient, do lots of homework, and not get too sentimental about the properties.

When you plan a vacation, some of the factors to consider are: location, things to do, dining, and shopping. Before making the final decision, most people commit to a lot of research.

Where you are going to stay is perhaps the most important part of the whole decision making process. More and more, people are researching and purchasing timeshare rentals.

The biggest benefit to timeshare rental is that you will not have to worry about hotel reservations during your vacation. There are many timeshare choices available, with a variety of facilities and upgrades available.

When you are purchasing your timeshare rental, it is important to consider what time of year you will have it for. If you are not a fan of large amounts of people, you may want to consider selecting a timeshare when it is not tourist season. You may also want to consider the climate of what season you choose. If your passion is for skiing, you would probably want to choose a timeshare in a mountain region in the winter, however if you are a beach person, consider an exotic vacation on a beautiful beach.

You can find time share rentals available across the globe. If it’s an exotic trip you’re after, you can take one with the knowledge that when you get there you will have a rental ready. The money saved with a timeshare rental can be used for shopping and entertainment.

Most timeshare rentals offer all the benefits and comforts of home, if not more. At their home there may not be a Jacuzzi or hot tub, but they do have fully stocked kitchens, and dining room. Some Wilderness units such as Alberta recreational property, offers Clients a chance to get off the beaten path and away from the crowds.

Meal preparation is not something some people on vacation prefer not to do. For such vacationers, the most convenient and logical option may be to consider a resort hotel to rent their timeshare from. Not only do most people find them affordable, they also have fabulous places to dine with amazing food selections.

It is important that you research your options very carefully. Although most timeshares offer similar amenities, there are differences in what you will receive and what the rates are. If you are planning a vacation during the tourist season, the prices will most likely be higher than purchasing in the off season.

As an investor, you should always be on the lookout for property investing opportunities. Every once in awhile, these opportunities might come your way easily, but for the most part, you must look for them. There is much more to foreclosure investing opportunities than a low purchase price. Too many times investors have made this assumption only to find out the hard way that an easy purchase is not always an easy sale. Knowing some tips to recognize foreclosure investing opportunities will help make your investing much easier.

Property value is one of the first ways of recognizing foreclosure investing opportunities. You don’t have to hire an appraiser or a realtor to assist you in figuring out the worth of a real estate property. You can use some of the same techniques these professional use to determine property value. Look up the price of similar properties that have recently sold. Between three and five properties will give you a good idea of the property worth.

Once you have determined the property worth, the next indicator of property investing opportunities is the amount of renovations the property needs. It doesn’t matter if you can purchase a property for a penny. If it costs need $50,000 in renovations and similar properties in good condition have sold for $40,000, then it should not be selected as one of your foreclosure investing opportunities.

You can find out the repairs that are needed in one of two ways. The first way is to ask the seller what repairs are needed. Some sellers will be completely honest, some will not. The second way is to use a bonded contractor. You can get referrals for contractors from other investors or respected realtors.

The amount you can buy a property for is perhaps the second most important factor in recognizing foreclosure investing opportunities. The lower you can purchase the property for, the better an opportunity it is. In general, the best property investing opportunities are those which you can purchase a home for 20% or more below real value. If you can negotiate even lower, that’s better.

At this point you can use an appraiser to tell you the value of the property. Any repairs should be made before the appraiser reviews the home. The object is to have the appraisals as high as possible to help you set your selling price. The selling price, relative to the purchase price, is the most important factor you can use to recognize real estate investing opportunities. The higher you can sell the property for, the better an opportunity it is.

There is a fair amount of work required in recognizing property investing opportunities. The first time you go through the process, it might be difficult and take what seems like a long time. As you get more experience you will learn to recognize an opportunity much more easily and in a shorter amount of time. This, of course, will come with experience. You might make a few mistakes in the beginning, but these mistakes bring knowledge that will only make you better at picking out real estate investing opportunities.

If you are purchasing a property on a new development, it will have been set by the developers/management company. Regardless of agent’s commissions, you should still pay the same price whoever you purchase through whether you go direct or through a third party. Resale properties are handled much the same way as in the UK with a valuation taking place and the agent’s fees agreed before the property is marketed.

Cyprus is registered on a land registry, similar to that on the United Kingdom. Therefore, the purchase process generally follows that of the United Kingdom but with differences. Use a Solicitor !!! It cannot be emphasised too strongly that anyone planning to buy land or property in Cyprus must take expert, independent legal advice.

Never sign anything or pay any money until you have sought legal advice in a language in which you are fluent from an experienced solicitor (ideally, someone who has been recommended).Under no circumstances should you use a solicitor who has been introduced or recommended to you by a vendor, agent or developer.

Accommodation: Avoid purchasing an one bedroom or studio type of accommodation (unless you are in a resort area) since you will have problems on resale. Prefer to get hired accommodation rather than think that you will sell your one bedroom unit and buy a larger one in the future.You may well find that selling the one bedroom flat is problematic. Flats most in demand are the three bedroom (around 120-130 sq.m.) and two bedroom (70-100 sq.m.) ones. This state of affairs is fluid however and changes from time to time and from location to location. In resort areas the most marketable accommodation are the compact one and two bedroom flats.

Upon signing a contract, the Purchaser is liable to pay stamp duty which amounts to 0.115% of a purchase price up to CY 100.000, and then at a rate of 0.2% on any purchase price in excess of CY100.000.Land registry fees are payable when the owner ship of the property is transferred. This is on a sliding scale, ranging from 5% to 8% depending upon the value of the property.

If there is a building on the plot you are buying, ask for the building permit in order to make sure that the structure is not illegal, as well as to ascertain the terms and conditions of the building.Please note that most of the above problems do not exist in case you buy a building site (as opposed to a plot of land/field). Even if the title deed registers the property as a building site, however, it is recommended that you go through the motions of checking the various prerequisites for development.

Prices are usually quoted as pounds per sq. metre. It is important, however, to ascertain the square metres of which area you are paying for. Certain developers include part of the common areas (staircases, lifts etc) while others include the verandahs and so on. If therefore, you are shopping around for the right price, make sure that you are comparing the same area.

Check whether your neighbours keep any animals in their yard since if they do the smell may be unbearable. Check also the distance from the town, the access, whether there is a telephone service, the nearest doctor, the frequency of the local post etc. Bear in mind that the cottage may be eligible for an improvement grant from the Government, if it is of historic interest. Your architect can advise you on this.

Upon signing a contract, the Purchaser is liable to pay stamp duty which amounts to 0.115% of a purchase price up to CY 100.000, and then at a rate of 0.2% on any purchase price in excess of CY100.000.Land registry fees are payable when the owner ship of the property is transferred. This is on a sliding scale, ranging from 5% to 8% depending upon the value of the property.

Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax levied in the taxpayer’s country of residence. Where different tax rates apply, the tax payer will ultimately not pay more than the higher of the two rates of the respectively countries.

Never sign anything or pay any money until you have sought legal advice in a language in which you are fluent from an experienced solicitor (ideally, someone who has been recommended).Under no circumstances should you use a solicitor who has been introduced or recommended to you by a vendor, agent or developer.

In case you require air condition ing/central heating, we suggest that the advice of a qualified electrical and mechanical engineer be sought. Fees for this consultant are around 4% for the design and 2% for supervision (on the cost of the works).Insist on all drawings being ready before inviting tenders.It is recommended that a building permit be secured first before works commence, although works such as excavations etc may begin prior to the issue of the building permit. In this case, your architect must consult with the Appropriate Authority to see whether there are any major objections to the drawings.

The Town Planning Act. This law (expected to be fully enforced very soon) regulates development and it will supersede the liberal town planning zoning which exists at present. It requires the preparation of local plans for development and prior to any acquisition/development of property, the inspection of these plans is a must. Any development in the future will require a Planning Permission as well as a Building Permit.

Cyprus enjoys a remarkably low crime rate 1/6 of the European average another reason for its popularity with foreign buyers for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of and theft not commonplace. Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit.

Cyprus is the lead nation that joined the European Union in 2004 which is another factor affecting the growth and prices in the property for sale market of Cyprus. It is expected that in the run-up to becoming a member of “the club”, prices of property for sale in Cyprus will continue to rise at an estimated growth rate of around 20% per annum.The climate of Cyprus makes the island one of the healthiest places in the world. With 340 days of bright sunshine annually.

Although the better the area the higher will normally be the price, an extra sacrifice at this initial stage may prove well worthwhile in the future. If you have children, pay particular attention to the proximity of public open spaces, such as gardens, since you will find that children will need some space to play.

Solar heating is an economic alternative and its adoption is relatively inexpensive, having a payback period of approximately 5 years.If you will have a garden, it is advisable to drill a borehole for watering as the water charges rise more than proportionately with consumption. This will cost around C1,200 for the borehole and the pump, although it will depend on the depth of the borehole. The drilling of a borehole requires a Government permit first.

Although the better the area the higher will normally be the price, an extra sacrifice at this initial stage may prove well worthwhile in the future. If you have children, pay particular attention to the proximity of public open spaces, such as gardens, since you will find that children will need some space to play.

Going through a company like Headlands has several advantages: you will get to see a wide range of properties in Cyprus that suit your requirements;you have the benefit of our many years experience, as well as a fully staffed office to support you in the UK; it will eliminate any possible misunderstandings ;it helps takes away the stress and strain associated with house purchasing in Cyprus.

On a sale of a property the current policy is to allow immediate repatriation of a sum equivalent to the amount of the original purchase value of property. Any profit can be exported at the rate of CY 10,000 per calendar year, plus any interest.There is no Capital Gains Tax where the property was acquired by the importation of foreign currency. Otherwise CGT is levied at 20% on gains in excess of CY 5,000.

The annual immovable property tax imposed by the government is approximately CY60-120 per year. The municipal authorities also levy an annual property tax of CY20-30 per year and other authorities may also require CY20-40 sewage tax. Common expenses are usually paid monthly or quarterly in advance. They vary from development to development and depend on the area and type of property.They cover an owner’s share of the cost of cleaning and maintaining common areas and gardens, swimming pool expenses, electricity in common areas, management fees, rubbish collection and repairs. The estimated total is in the region of CY150 to CY300 per year.

The Cyprus Property market is one of the fastest growing markets within Europe. Purchasers are attracted by the potential growth in terms of returns on investment of property in Cyprus compared to other countries in Europe and the UK. The climate (340 days of sunshine a year), along with easy access to the UK, Europe and other destinations is also a significant plus factor when considering the purchase of property to buy in Cyprus.

In these circumstances, promises and the willingness of locals to help may meet the Authority’s objections. A more serious consideration however is section 4A of the Streets’ and Buildings’ Regulations. This amendment of the Law states that, in certain cases, no building permit will be granted to plots of land which are the result of field subdivision. Therefore, the derivation of the site’s title must be examined and verified by the District Lands’ Office.

In addition a 1.5%-2% is payable for the structural design and 0.3% for structural supervision. If you are at a loss as to the choice of a suitable consultant, seek the advice of the Registrar of the Association of Architects & Engineers (all licenced architects must be registered). Please bear in mind that in case of large buildings you may be able to negotiate a lower fee (as also in the case of repetitive work).

Action to be taken and points to bear in mind when buying your own plot to build your own house.Seek a suitable plot. Visit the area that you are interested in and ask the local residents directly, or in case of a village, the village muchtar, if there is land for sale. Seek the assistance of a registered estate agent who may be in a position to offer to you alternatives but bear in mind always that most local sellers do not use the services of estate agents.