With the property market being in the state it is at present, many people are opting to rent property rather than buying due to fluctuating interest rates and the increasing cost of living. With the current rental market so buoyant, if you can afford to invest, now is the perfect time to buy a property to rent out.
Property management firms are showing record tenancy levels for their rental properties, illustrating that there is a larger, more prosperous rental market out there. This means that investment properties and second homes are easier to let.
When seeking to invest in property with the view to renting it out you should make sure that you find the best area in which to buy the property. Speaking to letting agents and estate agents is a good way to get an idea about where you should be looking to find the best property for your budget.
Once you have spoken to letting agents and estate agents, you can get down to viewing some actual properties. This will give you a good indication of the current market as well as what kind of property you can expect for your budget. It is always recommended that you consult a financial advisor so that you can get an idea of the various mortgage options that are available.
When buying property to rent you also need to decide whether you are going to manage the property yourself or whether you are going to hire a letting agent to do this for you.
If you are investing in property to rent and decide to furnish it you should ensure you purchase the right kind of furniture and try and not allow your own personal taste to influence your decisions too much. Keep furnishings simple and neutral.
It is also imperative you make sure the tenants have the proper contract and that they understand what the entailments of the contract are.
Rent Out Instead of Selling
Often homeowners are too quick to head to the nearest estate agent and crush their original asking prices out of desperation to escape the financial burden or rising interest rates on their properties. However, sometimes it is actually best to rent out the property instead of selling.
This will alleviate some of the pressure from the bond repayments and also protect your investment. After all, it is well known that over the long-term property has proven to be a lucrative investment. Sitting tight and seeing out the current dip in the market by letting your home could prove to be far more beneficial than selling for a price that is significantly less than it should be.
Student Rentals are a Safe Investment
Property experts vow that there is indeed one recession-proof property investment in South Africa; this being student accommodation.
The overall need for rental units in close proximity to campuses is increasing as student numbers grow every year. A lot of universities are battling to build extra student residences which means that students are having to look to the private sector for accommodation.
In terms of securing the investment, you should bear in mind that the rent for student accommodation per square meter is higher than other residential units. It is also easier to find a student tenant as at the end of each academic year a lot of institutions compile free property listings which are distributed.
It is recommended that you should look to invest in property to rent in close proximity to the campus due to the fact that rates are higher in such areas.
Experts state that at present Johannesburg, Pretoria, and Witwatersrand are showing considerable growth with Potchefstoom also indicating prospects. When investing in property to rent to students, investors need to choose property that needs minor or no maintenance at all.
The summer holiday in December is an ideal time to do maintenance in and around the property as the majority of students will not be using the accommodation during this period.
Author Bio:
Leapfrog Property Group is an innovative, first-of-its-kind South African real estate business model, offering you the very best in investment property in South Africa.
Article Source: http://EzineArticles.com/?expert=Graeme_Coyne
Tuesday, April 14, 2009
What is Leasing?
There are many terms to understand and consider as a business owner. Everything that does or could have an effect on your company is important. One such term that every business owner needs to understand because it could be beneficial to their finances is leasing. This is a process in which a business can obtain the use of an asset by making payments. In theory, you own the asset, but in reality you are merely renting. The main thing to understand about leasing that makes it similar to owning is that you have complete control over the asset. You could destroy it and it wouldn't matter. The only thing that matter is that you pay your monthly payment installment.
Leasing, especially in the business world, involves terms that must be followed. There are no set terms for all leases. The terms are agreed upon at the time of the lease and are decided upon by the individuals. Typically, though, lease terms can be fixed, periodic or indefinite. Some business leases can be agreed to have the terms be a set period of time. With this, the time frame expires automatically and no notice needs to be given. Periodic terms usually are renewed automatically monthly or yearly. The indefinite lease is one that lasts as long as both sides involved want it to last. With this type of lease, either party can terminate the lease without causing a lawsuit.
When using leasing in your business, it is important to know the different attributes of good leases. The first thing that makes a good lease is the lease pricing, which is market driven. Because of this, it is a good idea to get a few quotes before selecting a lease. You also should take into consideration the flexibility of the lease. Some leases are flexible with the ending options, while others are much stricter. You want to make sure you are giving yourself and your company the best options available. Doing so will save stress and hassle when the lease ends.
If your business is considering entering into a lease for any reason, it is a good idea to learn the leasing terminology. The person who obtains possession of the asset, which would be the business owner, is called the tenant or lessee. The person who actually owns the property is called a landlord or lessor. A tenancy is the relationship between the lessee and the lessor. How long the lease lasts is called a term.
Because many people's only experiences with leases usually are with vehicles and houses, it is important to realize the importance leasing can have in the business world. Leases are a good way to enhance your business' productivity and performance without spending the entire company's budget. In addition, business owners who decide to enter into leases need to be aware that lease payment can be tax deductible. So not only are you saving your company money by not buying brand new equipment, you also will be getting a portion of that money back.
Glen Kohlenberg
http://www.contractorblab.com - http://www.contractorblabblog.com
Article Source: http://EzineArticles.com/?expert=Glen_Kohlenberg
Leasing, especially in the business world, involves terms that must be followed. There are no set terms for all leases. The terms are agreed upon at the time of the lease and are decided upon by the individuals. Typically, though, lease terms can be fixed, periodic or indefinite. Some business leases can be agreed to have the terms be a set period of time. With this, the time frame expires automatically and no notice needs to be given. Periodic terms usually are renewed automatically monthly or yearly. The indefinite lease is one that lasts as long as both sides involved want it to last. With this type of lease, either party can terminate the lease without causing a lawsuit.
When using leasing in your business, it is important to know the different attributes of good leases. The first thing that makes a good lease is the lease pricing, which is market driven. Because of this, it is a good idea to get a few quotes before selecting a lease. You also should take into consideration the flexibility of the lease. Some leases are flexible with the ending options, while others are much stricter. You want to make sure you are giving yourself and your company the best options available. Doing so will save stress and hassle when the lease ends.
If your business is considering entering into a lease for any reason, it is a good idea to learn the leasing terminology. The person who obtains possession of the asset, which would be the business owner, is called the tenant or lessee. The person who actually owns the property is called a landlord or lessor. A tenancy is the relationship between the lessee and the lessor. How long the lease lasts is called a term.
Because many people's only experiences with leases usually are with vehicles and houses, it is important to realize the importance leasing can have in the business world. Leases are a good way to enhance your business' productivity and performance without spending the entire company's budget. In addition, business owners who decide to enter into leases need to be aware that lease payment can be tax deductible. So not only are you saving your company money by not buying brand new equipment, you also will be getting a portion of that money back.
Glen Kohlenberg
http://www.contractorblab.com - http://www.contractorblabblog.com
Article Source: http://EzineArticles.com/?expert=Glen_Kohlenberg
Property Management Helps You Rent Your Property
Before I retired I purchased three condominiums as rental properties near my hometown of Charlotte, North Carolina. I bought them at a good time, at a fair price. For a few years I managed the properties myself. But now I have a property management company taking care of my real estate investments.
I enjoy traveling. I spend the coldest months in Florida. In the past two years I have been to China, South Korea, Portugal, and all over the United States. The first year after I retired I managed the properties while I traveled. Even though I was on the phone every day and made frequent trips back home, I could not keep up with repairs and tenants' needs. With the help of property management professionals, I am no longer on call and can travel freely.
I contract with a full-service real estate sales and property management company that deals with both residential and commercial properties. They do pretty much everything for me. They find tenants, run credit checks, get leases signed, and collect and deposit the rent. They take care of any maintenance problems not covered by the condominium association. So if the toilet leaks or the refrigerator stops working, they handle it for me.
The other thing I like about this company is that they know the local real estate market. (In fact I bought my properties through them.) Even in these challenging times, they can accurately price a property, and they know when a good investment comes on the market. I have asked them to keep their eyes open for a good deal on another investment property.
I am lucky in that I bought these properties specifically as rentals; I do not plan to sell them anytime soon. Not everyone is so lucky these days. People I know who have been planning their retirements for years cannot sell their homes and move on. I have heard of young families who have to move for jobs or other reasons, but cannot sell their houses. While there are no perfect solutions for folks who have been caught in the housing downturn, property management companies can help. They can arrange rentals or even lease-purchase agreements, thereby reducing burdensome costs for these "not by choice" property owners.
I shopped around before I decided which property management company to use. I asked for references and actually met people in person to find out their experiences with the companies on my short list. I only considered businesses with a long-term presence in the community; I did not trust that an outsider or a newcomer would have the commitment I was after. Of course, the company had to be licensed and bonded. Most of all I needed to meet the person I would be working with to make sure we could communicate well with each other.
I am entirely satisfied with the property management services I am getting for my Charlotte properties. I hope you will have the same positive experiences if you find you need help renting your home or investment properties.
Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Charlotte Property Management.
Article Source: http://EzineArticles.com/?expert=Chris_Robertson
I enjoy traveling. I spend the coldest months in Florida. In the past two years I have been to China, South Korea, Portugal, and all over the United States. The first year after I retired I managed the properties while I traveled. Even though I was on the phone every day and made frequent trips back home, I could not keep up with repairs and tenants' needs. With the help of property management professionals, I am no longer on call and can travel freely.
I contract with a full-service real estate sales and property management company that deals with both residential and commercial properties. They do pretty much everything for me. They find tenants, run credit checks, get leases signed, and collect and deposit the rent. They take care of any maintenance problems not covered by the condominium association. So if the toilet leaks or the refrigerator stops working, they handle it for me.
The other thing I like about this company is that they know the local real estate market. (In fact I bought my properties through them.) Even in these challenging times, they can accurately price a property, and they know when a good investment comes on the market. I have asked them to keep their eyes open for a good deal on another investment property.
I am lucky in that I bought these properties specifically as rentals; I do not plan to sell them anytime soon. Not everyone is so lucky these days. People I know who have been planning their retirements for years cannot sell their homes and move on. I have heard of young families who have to move for jobs or other reasons, but cannot sell their houses. While there are no perfect solutions for folks who have been caught in the housing downturn, property management companies can help. They can arrange rentals or even lease-purchase agreements, thereby reducing burdensome costs for these "not by choice" property owners.
I shopped around before I decided which property management company to use. I asked for references and actually met people in person to find out their experiences with the companies on my short list. I only considered businesses with a long-term presence in the community; I did not trust that an outsider or a newcomer would have the commitment I was after. Of course, the company had to be licensed and bonded. Most of all I needed to meet the person I would be working with to make sure we could communicate well with each other.
I am entirely satisfied with the property management services I am getting for my Charlotte properties. I hope you will have the same positive experiences if you find you need help renting your home or investment properties.
Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Charlotte Property Management.
Article Source: http://EzineArticles.com/?expert=Chris_Robertson
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