Why New York Real Estate Investors Are Earning High Returns

Real estate in New York is one of the most sought after avenues for investment. New York real estate investors are not solely residents of New York. Affluent investors from around the world consider investing in New York as one of the most lucrative investment options for earning maximum return on capital.

Reasons for investing in New York real estate

Rising property price
According to a recent report by the premier real estate services firm Cushman & Wakefield, New York is currently the world’s top property investment destination. In 2010-11, New York area witnessed almost 166 percent increase in property investment. By attracting about $29.7 billion investment during the period, it surpassed London, which for several decades occupied the top spot in the global property investment segment. With better access to finance, the trend is expected to continue. The investment scenario has changed significantly over the past few years. While mortgage backed debt market is still not offering sufficient fund for investment in USA and Europe, the problem appears to be more pronounced in Europe. Here funding is currently focusing on prime leased assets. New York is currently attracting more property investment than Tokyo, which earlier occupied the second spot preceded by London. The earthquake and tsunami in 2011 has adversely affected the property prices in Tokyo.

Uncertain stock market yield
The fluctuating bond yields are prompting investors to invest in something that will assure guaranteed return. Despite the dramatic losses in property investment in 2008, the return on investment has been rising steadily over the past three years. Shareholders in investment companies or trusts are currently earning higher returns than from stock markets. The total return on investment in the current year according to the FTSE NAREIT Index is around 14.9 percent, while the total return on S&P 500 stocks is about 9.5 percent.

Rising rentals
The rising rent of residential and commercial properties is triggering further interest in investment. As more and more Americans are moving into apartments after losing their properties to foreclosures, the profits of landlords and shareholders in investment trust is soaring. Currently shareholders can expect 2 to 6 percent dividend on investment in properties.

How to invest in New York real estate
However, the average investor interested in investing in lucrative properties in New York is not a expert. To realize the various investment opportunities available for investors in new york, most investors rely on companies experienced in dealings.

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Toronto Real Estate – Appealing to the Foreign Market

An open secret within the Toronto real estate market is that many foreign investors and buyers see the city as the new alternative to New York or London for buying property. Years ago, that was simply an unheard of thought. Toronto property was tremendously undervalued just a few years ago. But no more. The secret is out and foreign interests are running to take advantage of the capital opportunity presented. Many foreign nationals now consider Toronto to be the condo capital of the North American continent.

What is Different Now?

There haven’t been any formal studies as to why this is happening now. But other prime real estate markets around the globe are not what they used to be according to experts in the field. The pickings have become slim to non-existent in New York, London or Tokyo. Condos in these areas are standing empty for months at a time, especially during the ongoing economic crisis. Canada and Toronto in particular have managed to fight off the problems plaguing the rest of the world.

Canada Differences Matter

The shift to Canada for primary residences is happening primarily because it is not as populated as the other cities in the world. What population there is cannot solely support the current real estate supply of homes available in the country. With that in mind, the Russians, the British, the Japanese, and of course Americans are crossing the borders looking for Toronto Real Estate deals. Surprisingly, the country whose citizens are doing most of the buying are is Iran. Iranians have become Canada’s biggest real estate investors.

Toronto is the most visited city in the world. It offers a great quality of life at a reasonable cost of living. That makes it just about perfect in the minds of most people. It is also more stable than many of the more popular destinations south of its border, in America. Another reason Toronto attracts people is because of its already diverse population. There are few reports of racial discrimination out of Canada as there are from, say Australia or America. Canada and Toronto in particular have been seen as being a very tolerant country and city.

Now a Haven for the Rich and Famous

Toronto used to have a reputation of being North America’s backwater colony. But that is now not the case. With the prices of American real estate entering the stratosphere, people are now tending to buy close so to speak if not in America to benefit from America. The boom in Toronto began in earnest in 2007 and continues today regardless of the current economic crisis. Prices are lower, yet are stable, proving the overall stability of the Toronto real estate market. The foreign influx into the market has seen some very famous and wealthy names taking part in the property grab consuming Toronto. This property grab has pushed the per foot cost of a Toronto unit upwards to about $1500.

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Six Reasons Why New York Real Estate Prices Could Go Higher

1) With zero or negative interest rates, many buyers consider Manhattan real estate to be like a secure savings account that will keep its value. When faced with the choice of a guaranteed loss in a bank, or real estate that holds real value and is expected to appreciate over time, buyers may continue to bid up Manhattan real estate prices.

2) According to CBRE research, the average price of property in New York sold for $842 per sq. ft. compared to London at $1,025 per sq. ft. and Hong Kong at $1,416 per sq. ft. This means that New York prices could continue to rise another 21 to 68 percent in order to reach the same relative price levels.

3) The US is considered a safe haven compared to other geographic regions. Wealthy buyers from Russia, China, India and other parts of the emerging world perceive New York a stable market to invest. The US economy still remains one of the strongest in the world, and hasn’t suffered the same decline as commodity producing emerging countries. The US dollar has been strong and it’s considered a politically stable place for foreigners to put money.

4) New York Manhattan real estate is much more affordable than other global cities when comparing average income to average prices. New York is 2.8 times more affordable than London, and 6.4 times more affordable than Mumbai.

5) Renters may choose to lock in their cost of living in fear of being priced out of the market. If prices continue to rise, or interest rates rise, renters may decide the pull the trigger in a purchase before they lose the opportunity. While prices are higher than they were in the past, at least they will have locked in their price. Many tenants are seeing their rent go up faster than property prices so it could make sense to lock in a long-term cost for living in New York.

6) Many affluent and wealthy millennials will inherit or be gifted the funds to purchase their homes. Their parents may be financially successful and want to give their children a leg up. In many cases parents or grandparents can gift, guarantee or co-sign a purchase to help them acquire a home which they can live in and launch a career. New York has many great professional opportunities and world-class living. Many families consider it well worth the cost of buying an apartment to provide the very best opportunities for their children that could last them a lifetime

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Moscow Real Estate Investment – Why You Should Consider It

Investing in real estate in Moscow could be the best investment you can make, and not in the long term but short term double digit gains are easily achieved.

Moscow 2007.

It is one of the most unique and exciting cities in the world – 17,000,000 souls live in a sprawling metropolis, seeped in history, seat of power of the Russian Federation, and home to 0ver 90,000 US Dollar millionaires, most of them under 50 years of age.

The Two Markets

The two Moscow real estate markets (residential and commercial) are indeed separated, but the profits possible in either market approximate each other.

For residential the greater part is composed of large apartment buildings, some of them with thousands of apartments within.

There is a smaller single home dwelling (often referred to as cottages, or dachas) which nevertheless can be built relatively cheaply compared to the sales price.

For the commercial market, there are new office buildings being built literally everywhere in Moscow, as well as shopping centers and industrial buildings.

The Opportunity

A simple visit to Moscow could convince the great skeptic that the construction boom is not even partially saturated.

The rents for either market do not yet approach London, but are closing very quickly.

The market is liquid, and there appears to be equally eager buyers and sellers. One can buy either independently, within a group, or fund. The returns have been more than impressive, and continues at a rapid rate

Why Moscow?

Moscow is a city of the future. Future is all about Moscow.

The population is young, growing, and highly educated.

The demand for both high quality commercial and residential property is unequaled in any European city, or any city for that matter.

Moscow resembles Hong Kong in the 1970s, London in the 1980s, and Los Angeles in the 1990s.

The political climate is more than stable, the laws and taxes have been adjusted to insure ownership continuity. The banks are learning the value of mortgage finance, and interest rates are becoming competitive.

How to Invest

Like any prudent investor one should see the lay of the land.

A week’s trip to Moscow can reveal much.

The major real estate companies (all of them) are resident in Moscow and provide a comprehensive viewing of their properties.

They can also reveal the local laws and regulations by which any investor and investment are regulated. It’s worth a visit. Moscow is alive and well and literally never sleeps.

How Much to Invest

This is a very subjection question. A 100 square meter apartment in Moscow can cost from $200,000 to $300,000 if purchased correctly as construction is about to start.

The sale of the same apartment in one year can at the moment find exceed $600,000 and even approach $1M.

It will not be difficult to make such an investment. One needs a real estate broker, a lawyer, and perhaps some personal assistant to translate and help you with local transportation.

Such a person is not difficult to find.

For larger and more impressive investment, consultation with the larger and well established real estate agencies can save you time, money, and later headaches.

Their specialists are on hand to guide you through the purchase process. For the larger investments, the multi-national real estate agencies (and they are all in Moscow) are your best bet.

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Advantages of Real Estate Investing

Investing in real estate is as advantageous and as attractive as investing in the stock market. I would say it has three times more prospects of making money than any other business. But, But, But… since, it is equally guided by the market forces; you cannot undermine the constant risks involved in the real estate. Let me begin discussing with you the advantages of real estate investments. I found the advantages as most suited and really practical.


Real Estate Investments are Less Risky

As compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just like any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more. As a rule of thumb, if you have a geographical area where there are plenty of resources available and low stable mortgage rates, you have good reason for investing in the real estate market of such a region. On the contrary, if you have the condo in a place, which is burgeoning under the high inflation, it is far-fetched to even think of investing in its real estate market.

No Need for Huge Starting Capital

A real estate property in Canada can be procured for an initial amount as low as $8,000 to $ 15,000, and the remaining amount can be taken on holding the property as security. This is what you call High Ratio Financing. If you don’t have the idea as to how it works, then let me explain you with the help of an example. Remember that saying… Examples are better than percepts!

Supposing, you buy a condo worth $200,000, then you have to just pay the initial capital amount say 10% of $200,000. The remaining amount (which is 90%) can be financed, against your condo. It means that in a High Ratio financing, the ratio between the debt (here in the example it is 90% Mortgage) and the equity (here in the example it is 10% down payment) is very high. It is also important to calculate high ratio mortgage insurance with the help of Canada Mortgage and Housing Corporation (CMHC). If needed, you can also purchase the condo on 100% mortgage price.

Honing Investment Skills

A real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when I went ahead with my first real estate property, I was totally a dump man. Ask me now, and I can tell you everything, from A to Z. Necessity is the mother of all inventions. I had the necessity to buy the property and so I tried with it, and I was successful. I acquired all the knowledge and skills through experience of selling and purchasing the residential property. Thanks to my job. It gave me the experience to become an investor.

Not a time taking Adventure

Real estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.

You should be prepared to time yourself. Take some time out, and do market research. Initiate small adventures that involve negotiating real estate deals, buying a property, managing it and then selling it off. Calculate the time invested in your real estate negotiation. If the time was less than the optimum time, you have done it right. And if you end up investing more time, then you need to work it out again, and make some real correction for consummating next deals. You have various ways and methodologies, called the Real Estate Strategies that can make it happen for you in the right manner.

Leverage is the Right Way

The concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people’s money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. As I had discussed under the sub head – No Need for Huge Starting Capital, the high ratio financing scheme gives an opportunity of no risk to the lenders, as the property becomes the security. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.

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Real Estate Leads For Realtors

Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.

The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price.

And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.

These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.

The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.

So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potential

clients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.

One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.

There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.

The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.

Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.

Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.

In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.

A similar way to generate real estate leads by advertising which can be even more effective than simply advertising on a billboard or in the paper is by setting up your own real estate website. Websites are surprisingly inexpensive to have hosted, and having one developed for you doesn’t have to be expensive either. And if you learn the basics of website development, you’ll be able to maintain it by yourself after it’s been set up so that you can always keep it current.

The reasons to keep your website current cannot be understated. First, you have to keep it updated with the properties you are trying to sell so that the people who visit your website will have something to look at – and since this list of properties will be changing frequently as your client list grows and changes, you’ll need to change your website often to incorporate the new properties and eliminate the ones that are no longer available.

A second reason for keeping your website updated on a regular basis your page rank will grow higher. Search engines use a number of factors to determine how relevant they are to certain keywords, and where to display them in a list of search results. And one of the biggest things that moves a website toward the top of the list is it’s page rank, which is greatly affected by how active and how current the website is. So the more often you update your website, the higher its page rank will be, the higher it’ll show up in search results related to real estate keywords, and the more visitors you’ll get to your site.

Once you get visitors to your site, you’ll be getting the exposure you want to potential clients for free. They can stay on your site for as long as they want to and look at as few or as many properties as they want to. And you don’t have to do anything in order to help them. In fact there could be thousands of people all on your website at the same time. That is something that you would not likely ever have the opportunity to do in person. This phenomenon is what is known as leverage, and leverage is what can turn a small business into a fortune 500 business in short order when managed correctly.

The best way to do real estate lead generation also happens to be one of the most difficult – at least in the beginning. The method of finding leads is by building a very large network, and using it. This is one of the best ways to get leads because it is one of the most surprisingly effective ways. But unfortunately, it’s also one of the more difficult ways to start, and takes a while to yield significant results.

The first thing you’ll need to do is to start building your network. And it’s not that you just need to start building it, you need to intentionally focus on building your network each end every day, no matter where you are or who you’re talking to. This is because for most people, networking does not come naturally.

If you are like most people, you are probably somewhat shy and don’t make it a point to intentionally meet and talk to new people on a regular basis. But if you want to build a network, you’ll have to do exactly that. This is something that can come as a challenge to say the least, both emotionally and technically, but it is well worth the effort in the long run.

It can be emotionally difficult because a large part of building a large network is dealing with rejection. And if you want to build a large network quickly, you’ll have to deal with a lot of rejection each and every day. Too many people, being rejected is taken personally and it ends up wearing them down so that they eventually give up before they gain the benefits that building a large network provides. But if you can learn how to not take rejection personally, you’ll succeed where so many others have given up and failed as a result.

And networking to generate real estate leads can be done almost anywhere. When you need to put some gas in your car, park on the other side of the pump from someone who’s already there and try to strike up a conversation where you’ll be able to tell them that you’re in the real estate business and can help them or anyone else they know who may be looking to buy or sell. And if you’re really serious about it, you may want to only get $10 or some other small amount of gas at a time so that you’ll need to go to the gas station more often and have more opportunities to network.

You can also build your network by meeting new people at any other place. You could talk to someone at the grocery store, library, church, waiting in line at the bank, or anywhere you are around other people for more than a few minutes at a time and starting a conversation wouldn’t be too awkward. It can be done anywhere, with just about anyone, at almost any time. And the more dedicated you are to it, the faster you’ll be able to grow your network and the better off you’ll be in the long run.

Some of the best ways to network are by talking to the people you already know. These are people who are already in your network, and you can use them to help you grow your network even larger. The most obvious way is to simply ask them if they are interested in buying or selling a property in the near future, and to keep you in mind if they are.

But another way to help you grow your network is to ask them who they know that may be interested in buying or selling a property. You are basically asking them for real estate leads using different words. You could ask them for the names and numbers of people who they know who may be interested in buying or selling a property, or you could ask them to give your contact information to the people they have in mind when you ask them that question.

It’s a great idea to have business cards with your contact information made up when you’re networking. That way you won’t have to rely on people’s memories which are definitely not the most reliable things when compared to something they can simply read from a card. Cards on the other hand make it so that the person you are giving your contact information to doesn’t have to rely on their memory, and it puts forth a more professional image as well which can only benefit you.

Real estate values have taken a dive and one of the results has led to there being many, many more properties on the market now compared to before the economy took a dive in 2008. This means that even though the prices are lower, the higher quantity of properties on the market make it possible to buy and sell more of them and make more money in commissions as a result which will more than make up for the decreased individual property values.

I order to sell more properties you must have more clients. And to get more clients, you need to have more real estate leads. These real estate leads can be generated in a variety of different ways, all of which can be useful to real estate professionals. Having reliable leads will definitely result in more clients, more sales, and more money made in commissions. Purchasing them, advertising for them, or getting them from your network is all great ways go get leads that all have their own strengths and weaknesses. Pick the one that will work best for you, and you’ll be on your way to making more money through real estate in less time that you think.

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