Category: Estate Agent

The obvious benefit and sought after benefit of flipping real estate is the profit. This is one incredibly tangible benefit, particularly when the profits are large and quick to come your way. Of course there are risks. Most ventures that offer high profit also come with a high degree of risk. Money, however, is not the only benefit that can be associated with flipping real estate though it is certainly the one on most investors’ minds when they get into this line of work.

Let’s talk profit first. Profit is the one reason that most people get into this business. The days are long and the work is hard. This is definitely not the type of work one would ordinarily undertake for the simple love of getting one’s hands dirty. This is real work that leaves you bone weary at the end of the day. However, when all the work is done and you get around to making the sell, you will find that the profit involved in a successful flip is well worth the effort you’ve put into the process.

The good news is that the savvy investor can still manage to make money even when the situation may not work out quite as planned. This is yet another benefit to flipping real estate. If the flip doesn’t work out, there is always the option of leasing to own the property or renting the property out. The profits in these situations are considerable less than a straight out flip but it can prevent financial ruin that is often the risk of a flip gone wrong. The fact that there are options and that you aren’t necessarily left ruined at the end of a bad flip is definitely a benefit. There aren’t many types of investments that allow you the option to save yourself the way real estate does.

One of the intangible benefits of flipping houses is that you are in essence working for yourself. In other words you do not have to punch a time clock or worry about overtime (at least not on your part). This can be a bad thing too if you lack the discipline required to get the job done. However, most of us will view this is a huge check in the pros column when deciding whether or not to take the plunge into the wonderful and frightening world of real estate investing.

Even though this is a business that requires a lot of work in order to turn an attractive profit there is some satisfaction at the end of the day involved in knowing that you are working for yourself and not to make someone else wealthy or in order to punch a time clock. That feeling of satisfaction is one that you should hang onto when the brand new toilet you’ve just installed becomes a geyser. Of course there are mistakes along the way, what other job keeps you on your toes quite like this one?

Real estate investing, house flipping in particular, can be one of the most frustrating types of investments a soul can pursue. At the same time it can also be one of the most rewarding mentally, spiritually, and financially. This is something you should keep in mind when deciding whether or not this is the right path for you.

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With its beautiful shoreline, lush fir forests and stunning Cascade Mountains Bellingham, WA real estate is certainly outstanding property to consider investing in. Prices on land and homes have risen in the Bellingham Bay area during the last several years making it a little more difficult to find affordable housing for the average person. Because of this, many first time homeowners as well as investors sometimes turn to the foreclosure market in Bellingham, WA.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
With its beautiful shoreline, lush fir forests and stunning Cascade Mountains Bellingham, WA real estate is certainly outstanding property to consider investing in. Prices on land and homes have risen in the Bellingham Bay area during the last several years making it a little more difficult to find affordable housing for the average person. Because of this, many first time homeowners as well as investors sometimes turn to the foreclosure market in Bellingham, WA.

Although the Bellingham real estate market has not been hit with an unusual amount of foreclosures compared to many other parts of the nation, there are still an abundance of opportunities to find that steal of a deal. Everyone should realize that investing in Bellingham real estate or foreclosures is not “amateur night.” It can be risky. You must do a tremendous amount of homework and know what you are doing. It’s usually best to have a qualified real estate broker or real estate attorney represent you in this endeavor.

You can minimize your risks in the Bellingham real estate market

If you want to buy foreclosure properties in Bellingham, WA, you must know how to find the potential property and access its value. You must know how to carefully research and inspect the property, so you don’t get stuck holding a money pit – or ever worse, a totally worthless piece of paper. You must also learn how to deal with home owners, how to bid on property and how to buy well below the market value so that you can sell for maximum profit.

Do your homework and learn how to:
-Research property titles, mortgages and deeds
-Obtain financing
-Avoid the most common pitfalls

Good and bad candidates for buying foreclosures

Investing in foreclosures in Bellingham, WA is not right for anyone who is currently having financial problems and is hoping a foreclosure will bail them out. This is not easy money regardless of what the late night infomercials may say.

Foreclosures in the Bellingham real estate market can be very right for a person who has a ton of cash, a steady job, a reliable cash flow or a financial backer. A backer can be anyone from a business partner to your grandmother. If this is something you really want to do, you can always find sources for investment capitol.

What kinds of things do you look for as a Bellingham real estate foreclosure investor?

Lots of things, from top to bottom and inside and out. Look at cracks in concrete, windows, roof, and doors – look at everything. Foreclosures aren’t always in top-notch condition. The owners may not have been able to afford to keep up maintenance. If you can’t hire a professional home inspector in Bellingham, WA, do what you can by inspecting the property yourself from all angles outside.

Things to avoid when investing in foreclosures in Bellingham, WA

Buying from long distance, in a distressed neighborhood, preconstruction projects and avoid buying from anyone that promises you cash back at closing. This is totally illegal.

Types of Foreclosures in Bellingham real estate

Many aggressive investors go after foreclosures when there is a downturn in the housing market. Foreclosures are homes that people have lost because they didn’t pay their mortgage payments or property taxes.

Pre-foreclosure: The owner has missed three or more payments and the lending bank has started foreclosure proceedings.

Foreclosure Auction: The home is released to the mortgage company and they can arrange an auction.

Real Estate owned properties (REOs): Real Estate Owned by the lender, this status indicates the lender or bank now owns the property as a result of a foreclosure .

Each of these types of foreclosures offers its own particular unique opportunity for the investor. In Bellingham real estate, the homeowner can still list the property as a “short sale.” This is where the bank will consider offers that will not pay off the mortgage in full. The bank will forgive the difference owed because it will be less of a loss than if the bank had to go through all of the steps of foreclosure — foreclose on the property, prepare it for a sale and then resell it at a later date.

Most Bellingham real estate investors know they can often buy these homes for 15-20% less than market value. If the property goes through full foreclosure, the bank will either place it up for auction or list it with a good real estate agent. If the property goes to auction on the courthouse steps, bidding is usually extremely competitive, but it is here that investors often have the opportunity to make the largest profit.

The earlier you buy in the process, the better the opportunity of making a good profit. You must know the current value of the property, the elements of time and market cycles. If you have to make repairs, you must know how to figure your rate of return and in what time frame. If you have the necessary skills and qualities it takes for investing in Bellingham real estate and foreclosures, it can indeed be a very profitable investment.

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Let’s get down to brass tacks with the home buying process. You as a buyer are spending a lot of money and have the right to be comfortable and happy with your purchase right? Of course you do. So essentially the question is what needs to be done in order to ensure that this is so? Well, probably the most important things is communication.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Let’s get down to brass tacks with the home buying process. You as a buyer are spending a lot of money and have the right to be comfortable and happy with your purchase right? Of course you do. So essentially the question is what needs to be done in order to ensure that this is so? Well, probably the most important things is communication. It’s a good idea to remember that your realtor is there for more than simply helping with some contracts. Your realtor is your info source of information on anything that you might not know or be familiar with. The more you communicate with your realtor the smoother this process will be.

Another way to ensure that you are completely happy with the home that you have bought is to never settle for anything less than what you need. This happens a lot when buyers are too eager to purchase quickly and in that quickness, things get overlooked. Remember that this is going to be your home, take the time to learn everything you can about the home in question. Does it have enough room for you and your family? Is there some extra room in case your family grows? Forward planning is an essential part of buying a home, and should never be overlooked.

When everything is said and done you should be left feeling like you have made the most intelligent purchase of your life. You should also have a financial arrangement that fits your lifestyle and payment abilities. In order to make this happen you need to be in complete control of your financial life, you should have your credit completely sorted out and dealt with so that there are no bridges that have to be crossed in order to secure the necessary funds for the purchase. Follow the advice of your realtor and the process should be a lot more fun than it is stressful.

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Learn what information you need before you invest in a large apartment complex!

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Purchasing an apartment complex as an investment is a fantastic way to watch an asset single handedly generate thousands, even hundreds of thousands of dollars in a very short amount of time!

A popular investment strategy, especially for new investors, is to purchase a more run down, mismanaged apartment complex at high cap rates. The cap rate, or capitalization rate, is found by dividing the Net Operating Income by the Purchase Price. Properties that are low performing often sell their apartments at a higher cap rate because there is more of a risk associated with them.

These properties are in need of many changes in order to become a commercial property that is working at its maximum potential.

Before you purchase a large commercial apartment complex, you need to get certain information. This information is crucial to your assessment and evaluation of the property.

There are two states you need to understand regarding the property, the state it is in currently, and the state it will be in after you fix all the major problems.

When you first find or are introduced to a property, be sure to ask for the income and expense statements. A lot can be told from analyzing the numbers that are reported on a monthy, quarterly or yearly basis. You can even use them to see how the property has performed over time. You will be able to see gross rents, expenses, net operating income, and all the items in which income and expense fall under such as refrigerator rentals and pool maintenance, respectively. Use this tool as a way to project future income after raising rents, filling the vacancies, transferring all costs to the tenants, and making the community an overall enjoyable place to live.

You must know how many units are in the complex, and what condition they are in. You can see what condition they are in by checking a certain percentage of the total units and assume that most are in that condition. However, it is always better to check all the units so you know exactly what condition the apartments are in. This could be a basis for lowering the asking price if the units are in far worse condition than you originally thought.

The vacancy factor is an important one. When a property has many vacancies, like 20% and above, it is not performing well. If you can fill these vacancies, then your ability to turn the property around is much greater! You must view all working leases, and ask the current tenants to sign a paper to verify the leases that you were given by the owner or working manager. You would be surprised how many owners may try to decrease their vacancy factor by false leases, just to make their property more enticing. However, if you are fixing the property up, then the larger the vacancy, the more opportunity you have to increase value and find a profit!
In order to evaluate this property, you must divide the asking price by the number of units and see what the price is per unit. You can use this to compare other similar complexes in the area. You also want to know what they are charging as rent, and what type of leases the tenants have. If the rents are below market rents, then you have the ability to increase value there. If your tenants have a full service, or net-net lease, then you have an opportunity to change it to a triple net lease, where the tenants pay taxes, insurance and utilities. You can literally pass all the costs of running the apartment to the tenants. After all, they are the ones using the facilities.

I am sure you can see the themes here. You want to identify areas where you can either increase or create value that was not there before. Be sure to get all the facts and numbers verified before you purchase your great investment. Be prepared to do some work to turn the place around. However, it will definitely pay off shortly when you use some simple tool, like increasing the rent and painting the exterior, making it a community where people want to live!

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Learn key tools that will make you a negotiation expert in commercial real estate.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
In commercial real estate you are constantly going to be using negotiation skills. Your negotiations skills will be put to use, not only in the process of creating an offer and working to get it accepted, but also with your contacts, brokers, buyers, sellers, engineers, and lenders. In any situation where there are more than two interests, you can rest assured that negotiations must take place in order to satisfy everyone’s goals.

Many people are afraid of negotiation, usually due to lack of experience. Once you begin practicing your skills, it will get easier for you, and may even become fun! Negotiation is filled with tactics and problem solving that are used to yield the best results for each party. Being a good negotiator is very important to this business.

There are different negotiating styles that work for some people, and not others. For example, some find success with a very strong, even intimidating approach in negotiation. I prefer to use a straight forward approach. I am prepared, informed and persuasive. I am confident, as I have anticipated the questions and concerns the other party may have, and will answer them, as needed. This helps me to clearly and confidently negotiate terms. As a result, closing deals is often easy and fun. It is true that different styles should be used in different situations, so study others who negotiate and develop a style that works best for you!

In commercial real estate, as in most businesses, it is best to yield to an agreement that is win-win, meaning both parties are satisfied with the results at some level. If the strongest concerns of each party are addressed and a solution results, the agreement is of mutual benefit to both parties.

If you are not familiar with negotiation, I suggest that you take a class, purchase a book, or find a seminar that covers the basics of negotiation. There are many generic tips and tactics that will sharpen your negotiation abilities, and make it easier for you to get what it is that you want out of an opportunity.

In commercial real estate, there are specific negotiation tactics that can be written into contracts. Many of these tactics require some creativity and are specific to certain situations. Don’t be afraid to get creative; after all, this is where commercial real estate gets really fun! You’ll be surprised how you don’t have to have everything figured out when you put a property under contract!

In commercial real estate, it is always a good idea to write a letter of intent before actually purchasing a property. In residential real estate, a letter of intent is usually not necessary, but in commercial real estate, I consider it a necessity.

The letter of intent should be clear, concise and not in legal format. It should appeal to the owner as a direct, personal letter, explaining your purchasing intentions with the property. Many people put in terms, closing dates, length of due diligence, and so on in the letter of intent. Negotiation can take place here, without any money being permanently spent by the buyer, or a deal completed. It can open a dialogue between you and the buyer, and start negotiations early in the game without anything being set in stone.

Another tactic that can be written into the letter of intent is known as an option contract. This option contract is a good way to investigate the property; you then have time to begin putting together a deal to make sure it is feasible. You can offer a certain amount of money to tie up the property in order to do some initial research, and not even mention closing a deal yet. This is a great option that can allow you to decide to move on with a property and begin negotiating, or simply move on to the next opportunity in a short amount of time. The option can be as simple as 15 days to do some preliminary work with $15,000 at risk. At the end of the 15 days, you may option for a full due diligence period and continue with the purchasing process.

When negotiating an offer, and you still have some questions left unanswered that will be unveiled during the due diligence, you can always write an item subject to or contingent upon the ability for you to do to the property what you intend. For example, if you are purchasing raw land zoned R-1, single family housing, and the broker mentions that the city would be supportive of rezoning the property commercial, which would greatly increase the return on investment, then you could write in the contract that you will purchase the property if you can get the property rezoned to commercial. This is done often, and works with many different variables that could affect the use of the property.

Writing in contingency clauses can be a great way to protect your interest and make sure that you end up with a property set up properly with a favorable exit strategy.

As we all recognize, seller’s have specific needs that need to be met. A buyer may really want to take the opportunity that the property would provide, but realizes that he or she may not be able to satisfy all the needs of the seller up front. A negotiating tactic that would work here would be for the buyer to satisfy the seller’s needs in two or more parts.

The buyer could set up two dates to pay the seller- with money in the beginning, and then money at the end of a certain period. This would allow the buyer to take the profit that he made from the property, and give the seller his money. As long as you satisfy the basic, up front needs of the seller, he or she may be willing to accept these terms, and you are on your way to fulfilling another opportunity!

As there are many other negotiating tactics that you will create to satisfy the requirements to make a solid deal, there is a really great tactic that allows you to continue to invest money into commercial real estate without paying taxes on capital gains! This option was made possible through the Internal Revenue Service tax section 10-31, better known as the 10-31 Exchange. This allows for sellers to use the profit from the sale and reinvest it in another commercial property without paying one cent in taxes! Can’t get much better than this for investors!

There are investors who are strictly involved in 10-31 exchanges, and it is a great way to keep the cash flow moving from one property to another with the benefit of full profits and no taxes. Sometime this tactic is a great choice and should be added to the contract when it can be optimized.

As you can see, the negotiation tactics in commercial real estate are there to protect your interests and maximize results. Be creative with these negotiations, and always be confident when walking into a deal. Be prepared, informed and persuasive. It is also necessary for you to keep your emotions at bay and your ego out of negotiations. You have to be prepared to walk away from any deal that cannot be made to fit your needs.

Always make an effort to sharpen your negotiating skills, and finely tune the tactics you use to increase your bargaining power. Having a few extra “tricks” up your sleeve will enable you to make a deal in your favor and get the results you want.

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Costa Rica is a country that is situated between Panama and Nicaragua.
It is bordered not only by the Pacific Ocean but the Caribbean Sea as
well. This country is divided by mountains and volcanoes. About 19,000
square miles make up this country and over 800 miles of this country
is coastline. It has some of the most breathtaking landscapes and
beaches that you will ever see.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Costa Rica Eye Consulting is offering
property in the beautiful country of Costa Rica. This is a team of
professionals who are committed to finding the perfect Costa Rica
property for you.

Costa Rica is a politically stable country with low living costs and
high quality homes. You will enjoy excellent weather because of the
geographic location. Access to local foods and fruits give this
country a small island feel with the convince of big city amenities.

Costa Rica Eye Consulting has an easy to navigate website which makes
finding your dream home or vacation property a breeze. Not all
properties and listed on their website as some owners would like to
keep their sales discrete. Contacting them will open the doors to new
unlisted properties.

Clicking on the picture of any property will bring up the all the
statistics that you would need to make an informed purchase. You will
find that most of these properties offer a lot of house for the money.
If you have ever thought of investing in property in Costa Rica, maybe
now is the time to do it.

In order to have a truly international flair to this website, the
script has been written in English, Spanish and German. Assuming since
you are reading this you will need to view the website in English. To
do so click on the British flag in the upper right hand corner of the
navigation bar. The telephone number and email address are at the
bottom of the page in case you have a question about any of the
properties.

About ( http://www.costaricaeye.com )
Costa Rica Eye Consulting offers beautiful competitively prices homes
in Costa Rica. With great a customer support team and an easy to
navigate website you should not have a problem finding an investment
property, vacation property or your dream home.

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Beware of the very unique contract terms used in GSA lease contracts to avoid headaches.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
The general services administration (GSA) leases more than 150 million square feet of space from private building owners in over 2000 communities. This makes them an extremely important player in the real estate community. Because of the unique terms and conditions contained in government releases, buyers of office buildings where the government is already a tenant basis the learning curve.

The number of potential conflicts between building owner and government tenant increase as the square footage under lease increases. Some investors assume wrongly that entering into lease agreement with the government is the same as a standard commercial lease.

The examples below the list rate some of the many unique terms and conditions in government leases back and have a big financial impact:

They use a standard tax escalation clauses stating that the amount of any increase in taxes about the first fully assessed year will be paid in a lump sum payment. Yet buried in the contract is a clause that requires the lessor to submit the tax escalation claim within 60 days of the tax payment date. If they miss the deadline, the lessor forfeits the entire escalation.

When they want to make alterations to a space, the GSA may ask building owners to sign a “waiter of restoration” clause, stating that when the lease ends, it won’t be required to restore the space to its original condition. Some owners think that by refusing to sign the waiver, they stop any alterations. But in a standard lease, there is a clause that allows alterations to take place. The protections for owners lie in the fact that, by refusing to sign the waiver, they may be able to force a restoration when the government tenant moves out. Keeping good records is critical for this.

Conflicts occasionally occur, and when they do, there’s another interesting clause that comes into play. The day contract disputes that clause outlines procedures to follow its owners have a disagreement with the government they can’t resolve through negotiations. It allows of building owners to submit a claim against the government by simply writing a letter to the government contracting officer outlining the basis for the claim and the amount. The government contracting officer can then either negotiate, pay the client, or issue a denial of claim. The denial of clay is in the form of a “final decision” which is misleading because the decision is not final. If the owner doesn’t agree with what the contract in officer decides he can appeal to a board of contract appeals which renders unbiased decisions. This is all done simply by mailing a letter.

Ultimately, there could things and bad things associated with government leases. To avoid any unpleasant surprises, owner should do their homework and understand their options in the event of conflicts.

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The most important investment you will ever make is probably the purchase of a home. Knowing the basics will give you a head start and save you time and money in your search.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
The most important investment you will ever make is probably the purchase of a home. Finding the right home for you can be a long and arduous process, but there is no getting around that.

Know Your Wants And Needs

Before embarking on your journey of house hunting, you must know what you really want to find. Sit down with pen and paper and list all the features you care most about, such as:

– Location (in a particular city, school district or neighborhood)

– Size — how many bedrooms and bathrooms

– Parking — a 1-car garage or 2?

– Style — 2-story house or ranch style home?

– Heating — central heating and/or air conditioning?

Equally important, on a new sheet of paper list all the features you absolutely do not want in a house. For example:

– high-traffic area.

– high noise area (airport, train station or highway in close proximity)

– maintenance — major repairs needed

As you look at houses, keep both lists in mind. Your lists may change over time as you do more looking. You’ll want to add or remove features, or perhaps you’ll become willing to make compromises. Realize that you most likely will not find the “perfect” home. Experienced homebuyers will tell you, perfect homes are not found, they are made perfect through hard work.

Get Your Credit Report In Order

Prior to looking at properties, you must get your finances in order. This is the time to review your credit report and clean it up, if need be, to maximize your credit score. Many people do not realize how important it is to check your credit report periodically to make sure it is accurate. You should pay off any past due amounts, or negotiate a settlement price to close the debt. Get such agreements in writing, before paying any settlement. Keep all receipts for any settled items from your credit report since it may take months to get the debt actually removed.

Research Your Home-Buying Options

Decide what kind of property you are interested in. Do you want a HUD property, a foreclosure, real estate, or property for sale by owner?

A number of web sites list homes according to city, state, or price range. Visit these sites to see pictures of homes, many with virtual tours, and review the listing features.

Get Pre-Approved For A Loan

You’re ready now to find a lender and get yourself pre-approved for the loan. Being pre-approved offers a number of advantages. It will clarify the price range you can afford. Also, once you find the home you want, you can place an immediate offer. If you have to wait for pre-approval, someone could buy the house right out from under you.

Several special programs are often available from lenders, such as the FHA or Ameri-Dream, that can save you money in the closing. Ask the lender about any special programs before you decide on a loan.

Find A Good Real Estate Agent

It is wise for the first time homebuyer to work closely with a real estate agent, no matter what type of property you’re looking for. A knowledgeable real estate agent will make your house-hunting much easier. A good real estate agent is usually a good negotiator, and will be able to help you with the complicated paperwork involved in placing an offer on a house or in closing a deal.

It’s essential that you have a real estate agent working for you as the buyer, rather than relying on the seller’s agent for the house you want to buy. The latter can involve a conflict of interest, which usually works to your disadvantage.

To select a real estate agent, you should check with your friends and neighbors for recommendations. Find an agent you feel comfortable with and who is knowledgeable about the area you hope to buy in.

These are just the basics of home buying. You will find many details you need to master as you move through the buying process, but having these basics under your belt will give you a head start.

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Although real estate prices have skyrocketed in Costa Rica in the last decade, there are still some deals to be had. If you are interested in purchasing land only, a piece of land can be purchased in the mountain areas of Costa Rica from $1,000 to $5,000 per acre, or if you prefer the ocean, land goes for $10,000 to $30,000 per acre. If you buy 40-50 acres or more, the prices could drop by half. The prices in Costa Rica have skyrocketed in the last decade, thus making the real bargains in some areas more and more unavailable. A good alternative for the investors is to look not for a house but for land parcels ready for development. Far from the cities, a piece of land can be bought in the mountains and highlands from $1,000 to $5,000 per acre. The lots with ocean views go for $10,000 to $30,000 per acre and the beachfronts begin from $50,000 per acre. If the investor decides to buy in volume, some 40-50 acre parcels or a bigger lot, the prices could even drop by half.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Although real estate prices have skyrocketed in Costa Rica in the last decade, there are still some deals to be had. If you are interested in purchasing land only, a piece of land can be purchased in the mountain areas of Costa Rica from $1,000 to $5,000 per acre, or if you prefer the ocean, land goes for $10,000 to $30,000 per acre. If you buy 40-50 acres or more, the prices could drop by half. The prices in Costa Rica have skyrocketed in the last decade, thus making the real bargains in some areas more and more unavailable. A good alternative for the investors is to look not for a house but for land parcels ready for development. Far from the cities, a piece of land can be bought in the mountains and highlands from $1,000 to $5,000 per acre. The lots with ocean views go for $10,000 to $30,000 per acre and the beachfronts begin from $50,000 per acre. If the investor decides to buy in volume, some 40-50 acre parcels or a bigger lot, the prices could even drop by half.

As far as homes go, there are still properties in Costa Rica that are being sold under their market value. The reasons for this vary, but the main reason these properties are being sold for such a low price is because maybe their owners need to sell them fast. The majority of properties that you can find at a bargain price are generally located fairly far away from the major cities of Costa Rica. It is much harder to find properties near the major cities at a reduced price. However, it is not impossible to find a rare property near the city that is being sold for a bargain. Doing your research, looking at listings, and asking for help from a real estate will pay off for. You may get lucky and find the property of your dream at an ideal location for a price below market value.

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As times were good and home values steadily increased, another segment of the housing market developed. In times of affluence, ordinary people became investors, buying homes and condos to offer as rental property. The banks.

If you are looking for an auctioneer in Wexford, or real estate agents in Wexford, then look no further than Estate Agent Wexford, Auctioneer Wexford, Bernadette Denby Auctioneers & Estate Agents, your local agent with a global reach!
Banks Profit Big Killing Real Estate Values

Everyone is aware now of the slow housing market and the fact that many people are losing their homes. There is, however, another segment of the housing market that is seldom spoken of, but which is also being hard-hit by the current situation. And the banks – who started the whole “tumble” – and who “profited greatly” in creating the “tumble” – are still profiting BIG !

First, let’s talk about the homeowner. In the 1990’s, banks developed a GOLDMINE in the housing industry…the equity loan. They began a huge marketing program to encourage people to take their money (savings) out of their homes and spend it. They touted that the homeowner could “use the money for anything you want – a vacation, home improvements, college tuition, new car, whatever”. The banks then proceeded to appraise the home over the home’s actual value and loan people equity up to 125% of the home’s value. This meant that people would no longer have any savings in their home – they would owe the whole value of the home at that time. Anyone who didn’t take out the money and spend it, was considered foolish – to have credit cards or pay interest on anything else, when they had money available in their home that they could pull out. People used their homes like an ATM. Anytime the bills got too big, they just refinanced and took cash out or borrowed on an equity loan. Who made the most with interest and fees? The banks.

Who made the most money on these loans? Yes, the banks. The homeowners didn’t care about the fees the banks charged or the closing costs. The only thing they looked at was the big fat amount of money they could pull out and spend – as if it were the lottery. Who profited big? The banks.

As times were good and home values steadily increased, another segment of the housing market developed. In times of affluence, ordinary people became investors, buying homes and condos to offer as rental property. This is an intelligent way to save money on taxes and serve those who cannot afford to buy their own home, by providing a nice place to live for a reasonable monthly rent. The other advantage, of course, was the appreciation on the property and having someone else help you pay the mortgage on the loan. The problem, however, was that much of the money they used to invest, came from home equity loans that they had taken out on their primary residences. The banks made this easier by providing “second mortgages”, with high fees of course, and added prepayment fees and penalties to ensure they made a high profit, regardless of the life of the loan and with second mortgages, you could buy a 2nd or 3rd or 4th house or condo with very little down. But when the market values slipped and the appreciation never came, people lost money on the rentals and it resulted in losing on their personal residences also, because of the home equity loans we talked about above. The only ones still guaranteed to make money? The banks.

Now, that people have spent all of their savings in their homes and they owe more than the home could be sold for, many homeowners are letting the house go back to the bank…in foreclosure. As many foreclosures as there are, it’s still a small percentage of the total market. Because it is such a small percentage, the banks can “dump” the houses for half of what would be the real value. This further devalues the market price of the other homes that are for sale. It’s peanuts to the banks, but to the other homeowners out there that have to sell for one reason or another – it’s devastating.

Worst part, when the crisis hit, the government instituted programs to bail out whom? The banks !