Property Investment Vs Property Speculation

Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.

Doheny Estate

The Doheny Estates neighborhood is located just to the north of Sunset Boulevard. As a neighbor of Beverly Hills, Doheny Estates is a popular destination for members of the show business community and its tributaries. The climate of southern California is a large draw for many relocating from cooler climates, though residents of the region have their own preferences in terms of moving up. Doheny Estates is in the upper ranks of Hollywood neighborhoods in terms of prestige, property value and accessibility to recreation and entertainment. Properties in Doheny Estates are priced to reflect the financial demographic of its residents, but turn over with regularity as residents relocate due to business or family needs.

Sunset Boulevard and its surrounding neighborhoods are widely considered home to some of the finest nightlife in southern California. There is an abundance of dining, night clubs and retail spaces for residents of this exclusive enclave. Aside from the trendy spots so commonly frequented by visitors and Hollywood’s elite, Doheny Estates offers easy access to art galleries, cultural venues, theaters and outdoor spaces. The schools in and around Beverly Hills are strong draws to commuters from Los Angeles looking for residence in Doheny Estates for their families. Doheny Estates is a much more secluded, secure environment than the bustling city and subdivisions in the immediate vicinity of the show business district and Hollywood.

Architecture in Doheny Estates ranges from classic, gated estates to modern examples of southern California design. Many of the streets winding through Doheny Estates have houses away from the gates sitting on well-manicured lawns. The lush, green spaces of the elite neighborhoods surrounding Beverly Hills and Hollywood are well-maintained and provide a nice contrast from the cityscapes prevalent throughout Los Angeles. Doheny Estates prides itself on green spaces and landscape architecture as foundations to display its magnificent homes. Some of southern California’s most noteworthy retail spaces are within a short distance of Doheny Estates, providing opportunities for shopping and personal services without the inconvenience of a long drive through Los Angeles traffic.

There are several real estate agents and agencies specializing in the properties of Doheny Estates and Beverly Hills. Due to the exclusivity of the neighborhood, many listings for Doheny Estates are not noted in common real estate publications. The best practice, when attempting to land a property in Doheny Estates, is to hire a real estate agent or agency specializing in the area for easy access to the properties. Doheny Estates is generally considered premium real estate, even among the elite neighborhoods of Beverly Hills and Hollywood.

Noida – An Excellent Option Residential Homes Investment

Noida as a potential residential home location is actually quite a good choice considering its strategic location. Noida is definitely an excellent option for those who are looking to settle down close to Delhi, the national capital. Delhi, being the capital city is quite important from both commercial as well as cultural point of view. And to stay in touch with all major events going on or coming up in Delhi, you better settle down close to NCR.

Noida is well connected to every important location in NCR either through road, or through Metro. The DND flyover reduces the distance from Noida to Delhi quite significantly hence reducing the traveling time for the commuters and making life much easier for them. The metro facility is quite a boon for office goers who travel to far off distances from their homes for their daily jobs. Greater Noida is also quite close thanks to the Yamuna Expressway which has wide and clean roads. The city’s infrastructure is quite well planned by its well managed city administration.

Considering all the positives of settlement in Noida, it has now become a preferred city where one can book their own residential properties in Noida and settle down. Even for people having a budget constraint, there are quite a good number of options in Noida as well as Noida extension. Residential apartments in Noida are quite affordable as compared to similar properties in Delhi. Since the beginning of the real estate development in the Noida city, a number of developers have initiated residential projects with a view to meet the growing demands for the affordable homes by people in all class. A number of organized housing societies have been planned to bring an overall improvement in living style along with the improved comfort levels. Developing a well planned township is quite a challenge while causing minimum damage to the environment. Using latest techniques of construction as designing earthquake resistant structures have proved to be quite a significant achievement in effective disaster prevention and management.

For low budget options, there are a number of projects offering 1,2 and 3 BHK flats in Noida Extension which are quite a deal considering Noida Extension is also quite close to Noida and the living environment is much cleaner and greener which most of the home buyers would prefer as one of their priorities in the list of must haves in a property. Residential plots in Noida Extension are another option for settlement plans. You can book your own plots here and start construction as and when you wish to. In fact, this has emerged as a popular option for people who cannot invest a big amount immediately.

There are a lot of positives in Noida real estate market, all you have to do is identify the right option and make a suitable decision which would benefit your coming generations.

Essential Tips And Techniques For Property Development Marketing

Property development encompasses everything from renovating an existing property to buying a parcel of land and developing it. But before you start marketing your property it’s essential to know who do you want to sell it to? Developers take the greatest risk by investing in property and selling it, but at the end of the day they stand to make the most money from taking this risk.

The first tip is to find the right location. Do your homework thoroughly by talking to local councils, town planners, local residents, property development marketing firms and carefully studying the building laws and regulations. Second, study the market carefully and evaluate its potential. An area that needs new housing will appeal both to clients and tenants. But building an apartment block in a busy business area will not attract clients. Thirdly, select the right team to design and construct the property. A good property development project manager can act as a mentor and will have established contacts and can save the client thousands of dollars in discounts. Finding and assembling the right team is one of the major key’s to successful property development. Right from the architects to the construction engineer to the surveyor will have a key role to play, and therefore need to be selected very carefully. Another essential is creating and maintaining harmony among the team. If the architect and the engineer dont see eye to eye, you will be the loser. You will be paying good money for delays in your project.

One of the major factors in property development is planning carefully and methodically. Your project manager must be involved with you right from the time you decide to launch into this new venture. Defining the milestones and making sure that they are met in the project’s lifecycle will make the difference between you making or losing money on the venture.

You will need to borrow from banks and financial institutions, and the key to securing financing will be to market the property. So for this you will need to develop a property development marketing strategy. Remember some banks and financing institutions make it essential for you to sell a part of the property before they lend you finances. Therefore it becomes essential for you to hire a property marketing firm that can design a marketing strategy and help you in selling the property. You cannot do site supervision, project management and marketing on your own.

Reputed property development marketing firms know how the markets are behaving and what does an area need. In fact you must hire them right at the start to help you decide if you have made the right decision on property development. Collecting data, forecasting needs and trends is what they are supposed to do, asides from developing a marketing strategy for the project.

Facets of a Typical MBA in Real Estate

Students who are looking to enroll for an MBA in real estate might want to get to know a bit more about what these programs have to offer, especially if they intend on entering into this field once they have obtained their qualification. While a course will usually differ depending on the school that the student is going to be attending, as well as whether they are going to specialize in a specific field, many of them will focus on a few of the key aspects of this area of the business world.

1.Real Estate Development

Those with an MBA in real estate tend to look for opportunities within this industry, and this is where real estate development comes in; when a prime opportunity is located, professionals can inform their clients of these and allow them the chance to take advantage by either investing in the overall project or purchasing a lot or building within the development. Understanding the specifics of this field is imperative if a professional is going to assist a client in making sound investments, especially since it is a complex and challenging opportunity to take advantage of.

2.Investments

When it comes to investments, professionals need to be able to make sound judgments based on a wide range of factors, and this entails that they have a sound understanding of the thought processes involved whenever they suggest their clients make an investment. Ultimately, this is what the field of financial real estate relies on, and so it is at the core of the professional’s list of responsibilities.

3.Analysis

Having a logical mind and being able to analyze everything from the risks involved to the estimated benefits will allow individuals the opportunity to do a better job, no matter what situation they find themselves in. When a professional knows what they are doing as they move forward with an investment, they will usually do so with much more confidence, and this is imperative when a lot of money is on the line.

4.Sustainable Development

Sustainable development, in terms of real estate and a client’s bank account, depends on their advisor, and so without a thorough knowledge of this field, a professional might not be able to put their client’s needs first. While every course on this matter might differ slightly, the fundamentals remain the same, and this is because these characteristics allow financial real estate advisors the chance to begin working in the industry with a strong knowledge base; something that they can work on as they begin to build up experience through the years.

For more information about an MBA real estate, please visit our website.