This seems to be the most popular question amongst property investors at the moment. We have moved from a borrower-led to a lender-led market in a very short space of time and the credit crunch is certainly making it ever harder to get deals to stack.
But property is just like any other business – it doesn’t stay static. It evolves and all successful business people know this and grow and evolve with their market place.
So whilst some investors are giving up and pulling out of the market, others are simply lowering their offers. Some are investigating other market sectors such as HMO’s (multi-lets) which offer fantastic cash flow if you buy correctly, and some are seeking innovative financing strategies such as assignable contracts, to out-manoeuvre the lenders.
With every market cycle there comes new and increased opportunities – particularly if you can be a trailblazer ahead of the crowd. The key is in knowing your market place and then knowing where to look and how to harness the opportunities presented. Many investors are therefore focusing on the increased number of repossessions that the credit crunch will bring to the market. With an ethical ‘problem solving’ approach there is a massive opportunity for investors to grow their portfolio whilst helping others. Even with the PCOL (online court diaries) being shutdown following alleged consumer complaints of spamming from investors, the canny marketers out there are still finding ways to reach their target market.
For my money, the smartest full-time investors are those that are not just doing some/all of the above, but are stepping back to look at the bigger picture. Every business survives or fails on its Cashflow. In changing markets there can be increased lulls between deals, and tighter margins. There is no point boasting that you are still buying at the same rate if you are simply doing the same deals that DID cash flow but now need to be subsidised every month. So the onus is ever more on the king they call CASH FLOW. It may mean you rejecting more deals and growing your portfolio at a slower rate – but better to build a sustainable portfolio than one that is going to kill your cash flow… and kill your business!
Many homeowners have been taken by surprise when the value of their home suddenly seemed to hit freefall. However, it would certainly seem as though there should be one advantage to dropping home prices. Many homeowners assumed that when the value of their homes fell, their property taxes would as well. This has not been the case in many areas though.
In some cases; homeowners have been shocked to discover that not only have their property tax bills not decreased, but they have actually increased. This has been quite a surprise for homeowners as they struggle to understand why they are paying more in taxes on homes that are not worth as much as they were just a year ago.
The reason for this relates to the complex manner in which property taxes are calculated in many areas. One of the biggest problems, especially in Nevada, is the fact that property tax increases were capped during the housing boom. During this time home values skyrocketed rapidly. Today, the values of homes in these same areas are falling; however, the decreases have not actually been enough to compensate for the increases of just a few years ago. Consequently, the values of homes would need to decrease sharply over a short period of time in order for property tax bills to decrease. While declining property values have certainly been a problem, they simply have not decreased enough in many areas to provide any relief from property tax bills.
As the rate of defaulted loans and foreclosures continue to soar in many locations, numerous counties have discovered that the rate of unpaid properties taxes is also on the rise. The metro Detroit area, in particular, is experiencing a record high rate of unpaid property taxes. Detroit is currently considered to be one of the worst housing markets in the United States based on the decline of housing prices and increase of foreclosures. The lack of jobs and weak economy in the greater Detroit area are considered to be the primary factors contributing to the housing crash in the area.
It is stated by the law that the owner of an invention has an exclusive proprietary right over it. Therefore a book may be considered an intellectual property, and its author may have the rightful ownership over it. UAE law prohibits publishing or providing such intellectual property to the public directly or indirectly, unless one has owner’s prior consent. Accordingly, if someone publishes a book without owner’s consent, the applicable punishment according to the UAE law is two month imprisonment, or a monetary fine raging from AED 20,000 to AED 50,000 or both.
The author also has the right to choose how this property will be published, unless he waives his right to ownership. In addition, any change to the author’s intellectual property is considered illegal and the author will have the right to contest such an act. However, changes in translation that may take place during the translation are not considered illegal as long as the translator refers to it.
It is important to consider that if the intellectual property is given to the public by the author, then there will be no crime against who publishes it beside him as long as the latter did no change its subject or its author. This was stipulated through Dubai’s criminal court of cassation when it sentenced that, “there is no charge to be considered against the respondent, as the claimants had put the songs records [which were the subject of such dispute] on the internet and gave a free access to the public to it”.
Managing a property can be a full-time job, especially if the property owner has multiple properties. For property owners who offer their property for rental, much of this work includes maintaining the home for the tenants. For instance, every jurisdiction has certain requirements and housing codes for rental homes that must be met in order to continue to offer the home for renal. Any code violations gives the tenant the right to break their lease and vacant the premises, which can create serious problems for the homeowner.
This is perfectly fine for those who have chosen to concentrate exclusively on managing their properties. However, this is only an added stress for those who have other jobs or responsibilities. This is where a property management company comes in handy. A property management company will take on the responsibility of maintaining the property and collecting rental payments on behalf of the owner. In addition, the property management company will also screen potential tenants and complete the necessary paperwork in order to get the property rented. Typically, the company will charge a small percentage of the month rent as payment for carrying out these responsibilities.
Finding the right property management company can be very simple. In fact, many real estate companies offer property management services to many of their clients. This need for property management has become a more popular option for homeowners who have property that they cannot sell.
Many times, when a home is in the housing market for too long, the homeowner may choose to turn it into a rental to avoid a mortgage payment that they cannot afford. In turn, the real estate can offer the home for rental or sale, depending on the homeowners needs. HoweverScience Articles, many real estate companies can are only equipped to offer tenant selection and rent collection services. It may be up to the homeowner to maintain the property.