A Ray of Hope for Immovable Property Investments, pt.2

A Ray of Hope for Immovable Property Investments, pt.2
Land and building investment involves putting money in securities of companies that are involved in real estate. If the development of the land is properly done, it can give handsome returns in the long term when the prices of the land are on the rising trend. In such cases, one can comfortably realize the capital gains.

Investments in land can also comprise putting money in open expanses that will be later developed by developers to convert them into houses and necessary amenities. The price of the land thus developed will be enhanced. If the land is in an area where the development phase is past, it will gain more appreciation and hence cost more than if it was in an area less developed and hence less preferred. Online-FREE-Real-Estate-Investing-Series

The ideal situation for profits would arise when the supply of land becomes limited. The purchaser then can sell the land at a high price. The profit will be more if the latest amenities at par with those of world class are provided here. The price and implications of tax thereon will be different for residential and commercial properties.

Investments in land are long-term profiting; unlike most real estate buys or purchase of homes; which give quick returns. The drawback here may be in the form of environmental issues that arise when environmental groups protest against the lack of suitable care in this direction. real-estate-financing_01

A real estate mortgage investment conduit, or REMIC, as it is popularly referred to, is used when the mortgage loans are combined and securities backed by mortgages are issued. They are used for the security of the residential mortgages in the U.S. Investments in qualified mortgages are permitted. Examples of the same are mortgages of single or multi-families, mortgages that are commercial in nature, second mortgages, participations in mortgages and securities that can pass-through federal agencies. Due to the Tax Reform Act, the arrangement of a REMIC is such that the mortgage-backed securities are sales of assets minus the loans that were previously shown on the balance sheet of the previous lender. Here, REMICs are exempt from tax at entity level, but whatever income is earned by investors is liable for tax deductions, though exempt from Federal taxes.

Due to the REMICs, issuers are offered more options and better flexibility in comparison with the same for collateral mortgages. There is no requirement of minimum equity. As a result, there is no necessity to retain assets to comply with the requisition of collateral security. Interests that are regular inevitably become eligible as debt figures while residual interests are more liquid when compared with the owner’s trusts.



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Follow these Steps When buying a Property

Follow these Steps When buying a Property

Are you are probably thinking of buying a new house for your family? Or maybe some land where you can set up your investment plan? Well buying property entails effort and good timing as well, in order to make wise and manageable decisions. You will need to be prepared ensuring that you follow the correct and wise procedures required for the purchase. It’s not always that easy but these steps will enlighten you and keep you at a tip toe state when it comes to acquiring your new property. Follow these steps when buying a property.

  1. Have an idea of the price range

As the saying goes “money talks”, the same applies when it comes to buying property. You need to get information pertaining the range of price that comes with it. Being prepared can be a great idea if you want to be a great investor in a property, and this is done by making sure that you have your funds ready.

  1. Determine your purpose and criteria of the property

Do you intend to buy the property and settle in it, if it’s a home for example? Or maybe your plan is to invest in it? This is quite a simple step that you ought not to skip. you need to know the reason for buying the property. On the other hand the specific criteria is essential, this is for example: the price range, style or even the location of the property. Do you want a house with a centralized heating controlled by a smart thermostat or no (http://www.smartyourhouse.com/best-thermostat/), etc etc. This enables you as the buyer to strategize and plan for your property.

  1. Good timing

If you intend to buy a property, then you have to choose a favorable time frame that best suits you. Purchasing your property at the right time means you have thought wise and also made good plans when it comes to payment. Setting a certain date and time will always determine the type of property that best fits what you want, be it a regular sale, short sale or even bank owned.219-825x510

  1. Finding a property agent

You have probably heard or seen in the media, situations where people have been victims of fraud. Well finding a property agent ensures that you don’t have any suspicions or complaints. When it comes to purchasing a real estate for instance, you will find that in the real estate industry, these houses are locked in the hands of the agents who will then sell them to you. Always seek to find a trust worthy agent who you can rely on. All in all you can still research in the web and get accurate and helpful information of the property if you have any doubts.

  1. Go for a smart offer

This is the final step and it comes after you have toured through other properties. When you finally find the property that catches your attention, don’t waste the opportunity; an agent will always have a glimpse of how the market is, so you have to come up with a good offer price that is agreeable between the two of you.


Acquiring property is considered an excellent way of adding a long term asset, as well as diversifying your portfolio if it’s an investment plan. Follow these steps when buying a property and make your dreams come true.



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