Real Estate Update

George Gonigal asked:




Ahmedabad is better known as the capital city of the state of Gujarat. It is the seventh largest metropolis of India. A city more popular for its industrial background, is now growing on the real estate map, slowly and steadily.

Ahmedabad is among the top 10 cities to reside, invest and earn, according to a study ‘The city skyline of India 2006′ conducted by Indicus Analytics. Surat and Ahmedabad are also ranked in the top ten ‘alpha cities’ also classified by the study as the elite club of 10.

Ahmedabad enjoys strategic location advantage of proximity to Mumbai, commercial capital of the country. Western, Middle East and African markets are also accessible. Going by the ever growing construction of skyscrapers, shopping malls and multiplexes, the city is moving on fast. Investors and NRI Gujaratis have been attracted due to its mega city status and the strides it has made in terms of healthcare, cuisines and malls.

Retail and information technology are the upcoming sectors in the state. IT parks are being set up. Projects in the auto parts industry are being planned for the city. An arterial road network of 155 kms has been identified for a Rs 950 crore Bus Rapid Transit System (BRTS) in Ahmedabad.

S.G Highway and Ambawadi are the places where IT companies are coming up with their campuses. Prime residential areas are Sabarmati, Vastrauram, Satellite, Ambavadi and Chandkhera. Prime Commercial areas are C.G road, S.G highway Satellite, Vastrapur. Coming of SEZ will further boost real estate residential and commercial values because of increase in number of floating population. Current Ahmedabad real estate market is less expensive as compared to the neighboring localities and this is going to be a crucial factor – as more number of International players will establish their campus here.

Sardar Vallabhbhai Patel International Airport serves both as a domestic and an international airport for the city and neighboring states. It operates direct flights to all other major cities of India. The National Highway 8 which connects Delhi to Mumbai passes though Ahmedabad. The National Highways Authority of India (NHAI) has signed two separate agreements with IDAA consortium and Larsen & Toubro (L&T) for upgrading the highway under a BOT (build, operate and transfer) scheme. The Metro Rail Project is being planned with private sector participation.

Current focus is on infrastructure by privatizing ports and building integrated townships. The government is encouraging in a big way, technology parks, education based townships, medical and healthcare townships, tourism-related townships, Logistics Park and residential townships.

Skilled labour, availability of land in market, quality real estate, low operational costs, good connectivity, supportive government policies and entrepreneurial culture are the city’s strengths. There has been a tremendous demand for low-rise buildings, bungalows and row-houses, say local realty agents. However, social infrastructure has still not matched the desired pace. Hence, self-contained and integrated projects will have better prospects.

Terry Smith asked:




If you are in real estate business or an investor are you waiting for real estate opportunities to come your way or are you doing something for finding them. Opportunities for buying real estate do not come and fall in your lap by themselves. You have to take direct control and make deals happen. The best way to survive in real estate industry is to make deals happen and for that you need to have a marketing plan in place.

You would naturally ask how a marketing plan can help in finding deals. Actually, this is what distinguishes real estate industry from other industries. You have first to find something that you can sell later. Both require you to plan accordingly.

Your first target should be to become a marketer of your real estate business. Knowing how to find real estate properties is all about knowing how to find motivated sellers and worth much more than knowing ways of buying real estate. Your real estate business, and profits thereof, is not going to pick up unless you are able to create a steady flow of motivated sellers of real estate properties calling you every day. If you can’t do that, you are indeed going to be frustrated and depressed and of course, out of work.

Do whatever you can afford to. Send inexpensive postcards, emails, newsletters, leave business cards or just word of mouth publicity. The idea is that anyone and everyone in your town should know that you buy houses and all types of real estate properties. At any given point of time you should be employing at least three modes of spreading the word.

The next thing that your marketing plan should focus on is operating your business consciously and not by accident. You should be clear about what you want to achieve in the next 30 days and the activities that you should be doing to achieve your goal. A well thought of marketing plan allows you to focus on high paying activities and delegate low paying activities to others.

Monitoring should be an essential part of any marketing plan for buying real estate. You should know the total number of leads that call each week or month and the source of those leads. It is also important that you know how many out of the total real estate opportunities actually qualify and the number of closed deals. Prepare a list for each lead source.  This allows you to know which lead sources to concentrate on in future so that you do not waste your time.

Surviving in real estate industry is difficult without a marketing plan. You do not want to waste your time on irrelevant and inconsequential activities and at the same time you want that you ample opportunities for buying real estate. At the end of the day, it is the conversion of real estate opportunities into closed deals that eventually give you profit. Buying real estate is the most important part of your business in real estate properties. Rest all comes after that.

Claude Cross asked:




Here it is! The Charlotte real estate  housing update*…whew!

We’re not reeling, but we’re not moving upwards, like we had been for the past four months.

September closings (1,945) were down by 12.4%  over the month of August (2,221).  Even our average sales price dipped down by 6%. September sales averaged $196,760 whereas August sales averaged $209, 245.

Sales are down, but not down and out.

This is not a unique performance for the housing market this time of year. The fall is a traditional season with a traditional decline in home sales and real estate activity.

 

For the Charlotte market, we fared no differently.  Contracts (2,199) for September 2009 have declined by 9.7%  over the fine month of August where home contracts totaled 2,434.

The average time a home spent on the market was only three days less than last month…which was 115.7 days…this from its “active” status until the time it went “pending (under contract)”.

In the national scheme of things, that is overall pretty darn good!  Still, we have a lot of Charlotte homes coming on the market. In September alone, 4,701 new residential real estate listings came aboard! The market changes daily.

Charlotte sellers listed pricing has come down a bit as well. In the month of August, the average list price of a “sold” property was $234,504…and in September this price had dropped down 6.2% to $219,925. Quite a dip in just one month!

The first time home buyer tax credit, has helped stimulate not just one, but two levels of housing: The first time home buyer, and the first time home seller (who then became a second time home buyer).

As seen by our dip in pending residential real estate contract numbers, the surge that took place, has pretty much run its course. 

For first time home buyers that procrastinated, you may have just lost out on one of the best deals going. (Unless, of course, it comes back again.)

Why? The ability to get a loan processed to close by November 30, 2009,  has just about come to an end. The loan processors typically need a good solid 45 days to make it happen!

Was the tax credit a success?  You be the judge.  The National Association of Realtors®, states as many as 350,000 home sales this year can be directly attributed to the $8,000 first-time home buyer tax credit.

That’s a lot of first time home buyers, who may never have even contemplating owning a home before.

The big question? “Will there be a tax credit extension?”housing tax credit

The big answer, “Maybe, maybe not.”

If you were one of the many first time home buyers that did not have your 3.5% saved up for a down payment, hopefully, the stimulus package has motivated you to get that savings put together (just in case).

And, those that were locked in to leases, perhaps your lease is coming up for renewal. Go month to month (just in case).

Buyer beware…if the $8,000 tax credit comes back again…hopefully, you, too, will then take part in the American dream, your own home.

Until then, it is something wonderful to dream about and plan for!

*The numbers used in this September 2009 residential realty report became available on October 8, 2009, courtesy of the Charlotte Regional Realtor® Association based on Carolina Multiple Listing Services, Inc. (CMLS) data covering the Charlotte region.

Ray Blanchett asked:




Emerging Cape Verde property market has been in conjunction with growing visitors to the tropical island with surfing and year round sunshine. Infrastructure expansion is greatly planned with an international airport, 4 or more tourist designated islands, road networks and inward investment relaxation of rules to accommodate foreign property buying. Cape Verde government is keen to attract many visitors on prolonged stays and as tourists to the number of islands earmarked for tourist development. Good returns for property developers that wish to build houses and apartments for holiday rentals to sell on or sit back and take high rental yields. Of course tax is due on rental profits, although substantial incomes can be made investing in the right property or land for development. Risk is always present buying property in an emerging market, although Cape Verde seems very promising as a long term property investment proposition.

Buying Process Cape Verde Property

Search for property and putting in an offer is the first stage of property buying. Estate agents and property developers can help with land and buildings for sale or you can locate property for sale on many websites and deal direct with owners and house builders and save money in the buying process. Good idea to conduct searches on the local area and property through Land Charge searches at the Municipal Authority and Land Registry Offices in Cape Verde. Searches here will provide a lot of information on the property:

- Debt attached to the property. Check to see all taxes, utilities is paid on the property as the new owner would inherit all financial liabilities.

- Restrictions on the property, property transfer and title.

- Valid habitation permit that goes with a valid conveyance of the property.

- Land register certificate “Certidao do Registo Predial”.

- Map location of the property “Planta de Localizacao”.

- Tax information on the property “Certidao Matricial”.

Retain the services of a good lawyer who will arrange for the initial contract to be signed and agreed by both parties in property buying, and all other legal matters. Of course have a lawyer check all the details above and if the property is registered and in the sellers name and has the right to sell the property.

- Get hold of a tax card that is required when buying property and paying taxation due.

When signing the initial contract in the lawyers or builders (Promissory Contract of Purchase and Sale “Contrato Promessa de Compra e Venda”) office a deposit is due and the contract is binding, meaning you must buy the property and the sellers must sell you the property. Contracts are as mentioned signed in a lawyer’s office known as a Notary Public in Cape Verde.

When you have completed all the searches on the property and your lawyer says that everything is no problems with the property and the survey check on the property is all clear the final contact will require to be signed. Escritura is the final deed of conveyance that gets signed in a Notary Public in Cape Verde and provides the buyer of the property a document proving they are the rightful owner of the property. The Notary will register the title deed with the local land Registry and local Municipal Authority enabling enforceable title, also your lawyer can register the property. Final balance due on the property is due at this point.

Notary, lawyer, survey fees are also due, and stamp duty at present 2.5% of the final property buying price, all which are payable at the time of the final contract signing.

- Taxes are payable, please remember. Capital gains taxation when buying land for building is payable at different rates according to the sales price of the end user of the property. Sales vales in excess of 100% of purchase price of the land are then due, with other capital gains tax levels due if the increase in selling price is 30% or more.

- Transfer tax at 3% payable at the final contract signing stage.

- Annual taxes are due at present in excess of 3% per annum.

- Capital gains tax is also payable at 3% presently for the property and a “Declaracao de Mais Vallis” Capital Gains Tax Statement is also required to be sent to the Cape Verde Government within 30 days of the deed being issued.

- Gifts of property or property transferred to anyone including family members are taxable at 3% transfer at present.

K. Van Liew asked:




Investors typically choose real estate for a number of reasons: cash flow, appreciation, tax benefits, and leverage.  A real estate investor holds property for personal or commercial investment reasons.  This differs from real estate dealer who holds property primarily for resale to potential clients.  An active investor typically buys a property and then makes repairs or improvements with the intention of selling the property for a profit.  A passive investor usually hires an investing firm to find and manage potential profitable opportunities, and is not actively involved in any improvements or negotiations related to the property.  Unlike a professional realtor who has to pass a series of exams and be licensed by local and state agencies, an investor simply needs capital and confidence. 

By putting down payments on a real estate transaction, an investor can significantly increase his profit percent and better the terms of the financing loans.  By bettering the terms of the loan, an investor can increase his available cash for other transactions, thus increasing potential earnings exponentially.  This process creates a strong cash flow.  This cash flow is very enticing to real estate investors.

Barring any unforeseen declinations in quality, real estate, unlike a car, generally appreciates in value.  This means that once a property is purchased, the value of that property steadily increases over time.  Residential real estate is especially prone to this process.  This is so because residences are comparatively priced.  This means that the value of a property is largely dependent on the value of the surrounding properties.  Therefore, if one house appreciates in value, then the surrounding properties also increase in worth.  An investor can force appreciation by investing in repairs or improvements.

A somewhat lesser known reason that so many people are learning how to become a real estate investor is the beneficial tax rules governing such transactions.  State and federal governments try to encourage investment by writing financial rewards into the tax code.  There are two main rewards built in.  First, an investor can claim monthly mortgage payments as a tax deduction.  Secondly, tax deductions can be made through a process called depreciation.  Though a property may appreciate in value, an investor is allowed to make the assumption that it will actually depreciate over the projected useful lifespan of the unit.  He or she is then allowed to claim this theoretical loss as a tax deduction.

Another strong reason for becoming an investor is called leverage.  Leverage can best be explained through an example.  Say you bought a house for ten thousand dollars and then sold it for eleven thousand dollars.  Your profit margin would be ten percent.  However, if you get an initial loan for the purchase and make a down payment of only one thousand dollars, then your profit margin would be one hundred percent.  This method is called leverage and is a great way to maximize profits.

For all these reasons real estate investing is both an easy and very profitable business to get into.