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Starting Off as a Property Investor

Property Investment

Everybody must start somewhere and this also applies to property investors. When starting out, a property investor may wish to buy a house with the precise intention of renting it to tenants. This can be a relatively safe way of investing as, under normal circumstances, property values will generally increase over time.

This type of investment may not need too much initial cash as you could perhaps get a mortgage. If you do get a mortgage, you will expect your monthly income from rent to pay that mortgage and of course provide you with a profit afterwards. You should therefore invest carefully and many of the more experienced property investors follow the 1% rule.

This rule dictates that in order to make a profit from the investment in a property, the expected rent for the property should not be less than 1% of the property’s value. It is believed that if an investor can collect 1% of the house’s value each month, it will pay the mortgage and maintenance and also allow for any periods the property may lay empty for a while.

Included in the rent will also have to be the estate agent’s fee if the investor wants them to manage the property. When an estate agent agrees to be the property manager for one of these investors, they will usually be expected to collect rents, oversee maintenance and generally look after the property for the investor. If you can afford it, most investors prefer to buy properties with multiple family units so as to be able to collect more rents, not always for extra profit but to ensure that they make a profit at all.

For instance, if you buy a property for $100,000 you would need to be able to collect $1000 in rent each month in order to make it viable but if that rent was even divided in two because the property was a duplex, you could chare $500 on each unit which may make it easier to find tenants.

Of course, once the mortgage has been fully paid, you will have the option to sell the property and have all that you get for it a profit or, even if you keep renting it out, most of that rent will then become profit as there is no more mortgage to pay. Once you have that extra income, you can either buy another house for cash and keep all rent as profit or, once again take out a mortgage and o through the same procedure again. Obviously by the time you have invested in several properties in this manner, you can be assured a tidy little extra income each month.

Some investors prefer to keep increasing their investments until they get to own a block of flats or something similar. That of course could bring them in a very substantial income every month but would also of course, require a larger fee to be paid to the agent to manage it.

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Real Estate: Lighting Options and Keeping Things Bright

Lighting

It may not be often that you look at the light fixtures and lights in your home, but if you are going to sale it you will want to look at these things very carefully. You need to inspect the outside and the inside lights for appeal, rust, age, and repairs. Get your note pad out so you make a list of what needs to be done concerning the lights.

Outside Lighting and Fixtures

You may have to show your home to prospective buyers in the evening, so do a few trial runs to see what you house looks like in the nighttime. If you have a pathway, make sure that it is lit in such a way that the light hits the path, but not the person’s face. Replace any burnt out bulbs.

Now take a look at any automatic lights you may have on the perimeter area or on the garage. Ensure that they come on when they should and that there is no delay in the trigger. As you are looking at these lights, make sure the bulbs are working, there are no frayed wires, and there is no evident rusting.

As you approach the porch area, inspect the lights and fixtures. You will also want to wash the light fixtures, as well. Putting in a soft yellow bulb is more attractive that the glare of a bright white.

Lastly, do a similar inspection of any other lights that may be in your front and also any lights and fixtures in your back yard.

Inside Lighting and Fixtures

Now you must begin the same inspection process inside the home. You may want to consider using energy efficient and soft lighting. As you move around the home in the evening hours, make sure there is enough light. However, you do not want any of the lights to be too harsh. Always be prepared for day and night showing for potential buyers.

If any of the fixtures are very unusual or unique, you may want to trade them out for a more traditional style. You may love your fuzzy, bright range light shade, but some people may not. Sometimes the owner’s taste is so unique that the prospective buyers are turned off by it. You can take down your unusual fixtures, and go ahead and pack them for the upcoming move.

Also look to see if any of the fixtures are dated. Often people forget to update their lights. If the wagon wheel fixture is still over the table, it probably needs to be changed. Check every room and every light in the home. You may also want to look at your lfoor and your table lamps. You will be taking them with you when you move, but they do impact your décor.

When you are preparing your home for selling, you must consider the lights. Repair them and replace them as needed. They can make or break a house sale.

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Estate Agencies

Agencies

Estate agencies are businesses which have been legally approved to carry out sales or purchases of either residential or commercial properties on behalf of third parties.

These agencies are usually owned or at least managed by real estate brokers who are highly qualified real estate agents. Each agency may employ its own agents and often they will take on people that have no previous real estate experience and then train them in a manner they prefer.

Obviously depending on the actual requirements of the agency at the time of hiring, they may opt to take on a more experienced agent.

If they take on someone that is inexperienced with the intention of training that person themselves, there are certain qualities that would expect that person to have and those are; honesty, the ability to work with figures and good communication skills, often preferring to hire someone with a customer service background ensuring they will interact with potential buyers successfully.

Of course if an agency opts to take on an already experienced estate agent, they will have to be prepared to possibly offer a higher salary than they would to an inexperienced one.

Someone with no experience in real estate could reasonably expect to be offered between £12,000 and £16,000 per year whilst an experienced real estate agent will probably expect upwards of £20,000 per year. Especially if they have followed seo techniques for estate agents to become an online expert.

An agencies job though, may not only consist of buying and selling properties, they may also be hired as property managers. As an investment, some people opt to buy houses with the specific intention of renting them out.

When someone does this, more often than not, they will not want to deal with the mundane details of renting and so they hire an estate agency to manage the property for them. If an agency accepts to manage a property, they will be expected to collect rents and oversee any maintenance the property may need from time to time.

They may or may not be consulted as to how much rent should be charged but they are certainly in a good position to offer advise should they be asked. Obviously due to an agency buying and selling properties in an area, they know if more people are looking to live in the area or, many people are looking to leave the area.

Usually for someone to make an investment in buying a property to rent out, they would expect that accommodations are in short supply in that particular area otherwise, there property may sit empty for long periods.

It is dependent on whether or not many people are looking for properties in that area, which will play a large role in determining how much rent to charge a tenant.

As an agency could be asked to take on the role of a property manager at any time, most agencies will ensure that they have at least one agent which is experienced or qualified in property management. That too of course could help dictate an agent’s salary.