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Building Apartment Houses In An Expensive Neighborhood

   Visit Our Website  When a real estate investor goes into an expensive estate or neighborhood to build apartments/ flats, they need to consider the rental rates. Lands are very expensive in some estates or neighborhoods and would make sense when single-family homes/duplexes are built for rentals or sale. This is because a small land size can be used to achieve this goal. When constructing blocks of flats for rental purposes, ensure that all the flats have considerable parking lots for their cars as per government regulations. For example, a block of four numbers of one bedroom flat needs to have at least four parking lots. This means one parking lot for each flat. While four numbers of three bedroom flat need 4 to 8 parking lots. In other to achieve this, a sizeable land will be required. The size and cost of the land will make total expenditure very high, especially if the land is in a choice neighborhood or estate. This means the investor will get his investment back...

Make Your Money Work For You

    Visit Our Website  In real estate investments, there are several options for investors. They can invest in land speculation, build and rent, build and sell, flip homes, or buy and hold. If your goal as a real estate investor is to continually invest your capital with the hope of making a 10% to 20% profit on each sale per year, you may have to consider building a house and renting it out. When you rent out your house, there is a high probability that you stand a chance of making at least 10% on investment if development is well supervised to minimize construction wastage and unnecessary spending . If your property is a multi-tenanted building, you may earn more than 15% per annum of your capital. The build and rent option surpasses other real estate options if the house is a lucrative rental with good tenants that causes minimal damages to the house, excellent rental rates, and payment on time. This means you can eat your cake and have it. By renting out your house ra...

Difference Between Cost, Expense, Liabilities, Asset, Income and Equity

     Visit Our Website  Asset, equity, income, cost, expenses, and liability in this write-up will be viewed from a real estate investor's standpoint. They are interrelated and it will be good for investors to have a clearer understanding of these words. An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. An asset can also be something you own containing economic value right now and/or future value . So, we can simply define an asset as anything of value that can be converted into cash. Assets are tangible and intangible. Tangible assets include current assets (cash, inventory, and accounts receivables) and fixed assets (Buildings, land, cars, and equipment). On the other hand, intangible assets include copyrights, trademarks, patents, etc. All investments are assets but not all assets are investments. An investment yields income or profit but not all asse...

Different Streams Of Income Relating To Real Estate

     Visit Our Website  There are different ways to stream income from real estate. This income stream includes profit income, interest income, dividend income, rental income, capital gain, and royalties. A good business yields a lot of returns for the investors. To be able to invest in any business there must be capital. One of the ways to raise capital is by saving money from monthly wages. The savings should be invested in a business that will earn passive income without needing to do much work. Having sufficient cash flow can lead to financial freedom. Buying and selling properties is an excellent way to earn profit income. Profit refers to the difference between the amount of money spent and the amount earned in a given period on a particular investment. There are different types of properties to buy and sell but flipping a house or land will give a better return on investment. For example, investing in the construction and selling of buildings or flipping old ...

Why Parking Lot Should Be Highly Considered In Apartment And Commercial Buildings

     Visit Our Website  When you build a house without adequate parking space for the tenants, this can quickly become a nightmare. These can bring discomfort to the tenants, lead to quarrels among tenants and limit the number of vehicles each family can own. Tenants looking for apartments without parking space are limited, so these can result in rent void for several months. During the building planning stage, you need to work closely with the architect to ensure adequate parking areas are created and assigned to every apartment. One to two-bedroom apartments will need at least one parking lot each, while three to four-bedroom apartments will need two parking lot each. In most cases, a self-contained room may not need a parking lot because they are usually let out to young and singles individuals without a vehicle yet. Parking lots bring a lot of value to an apartment when tenants know they can park their vehicles without hassles or need to scout the immediate vicin...

When To Sell Your Real Estate Properties

   Visit Our Website  Real estate properties are income spinners that provide cash flow for the investor. For a good investment, the rent should be used for capital recovery or paying off the mortgage in 10 – 13 years. Earning a passive income monthly or yearly without doing much work is a good way to become financially free . So there must be a very good reason when an investor decides to sell one or more of his houses. The following will be a good reason to sell a house; the house is not performing very well compared to the capital invested, there is too much delay in cash flow, the interest rate is going too high, the house maintenance is becoming too high, the house is highly dilapidated that renovating it will not make much sense, there is always too much rental void, the need for a new house, move investment from a particular area or neighborhood, the government regulation is not conducive, there is high sales value appreciation, the property is not within easy re...