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Archive for the ‘Property Tips’ Category

Buying property is really a tricky decision to make. Investments are really very difficult to cough on something very expensive, when you can’t really see the outcome at this point of time. Buying commercial property becomes even trickier. Whenever you are buying a commercial property, you have different assumptions in mind. There are different indicators which contribute to the development of a commercial real estate. First of all you should determine the level of investment which you can make. Payment is also made through two ways. Either you pay the entire amount for the property lump sum or you just get it mortgaged. This depends on the pattern of cash flows you have and the priorities you have for the future. If the interest rates prevailing in the market at this time are higher, then it is better to pay in case.

On the other hand if the interest rates are low then going for payment of cash is not good. It is then better to pay through mortgage. If you are already running a business then it is better to use the mortgage option. This will help you in two ways. Number one benefit is that you will be able to charge it against depreciation and that would in an indirect impact result into reduced income, thus reducing the income tax you have to pay. Second effect is that you would also add the interest expense on the mortgage that you have to pay. By applying the mortgage you can now further reduce your income resulting into again reduced income. This double impact would help you save a lot of tax for your business. Buying a property on mortgage is not advisable in certain situations. You must not buy a property through mortgage if the cash flows from your business or other earning sources are uncertain. Apart from your financing constraints the other primary concern is of the future earning ability. By the development of the area you can easily determine where the area will stand in the next 5 to 10 years. It is better to invest in a commercial real estate with an assumption of return in 5 to 10 years. If you are risking your money for longer then that, this would stretch the risk level too high.

You also have to calculate the way in which you would use the building. There are many uses of the building. It all depends on the way you want to use it. You can either rent it out for residential purposes till the time comes that it has commercial value as well. This will also help you recover some of the investment to maintain the property and also to pay back the installments if you have gone for the mortgage option. Simply follow these steps and do take opinions of other trust friends in real estate as well and you are sure to taste huge success.

Source:
Dubai Property

People do not know about these techniques and simply leave the house for foreclosure. They want to save their home but they do not know the means by which they can save their home and stop the foreclosure. If a person is unable to pay the mortgage amount he should not hide from his lender instead he should approach the lender and tell him about the problem he is facing. The lender or the mortgagee does not want to lose the mortgagor because it tends to be costly for them too. They have to place lawsuits and get the property sold whereas they have to find new buyers or mortgagors for the property. Therefore, they try to provide the financial assistance to the mortgagor instead of foreclosing the property. One of the famous techniques to stop the home from being foreclosed is to go for special forbearance.

Special forbearance is an agreement between the mortgagee and the mortgagor which contains a plan of reinstating an asset or temporarily downsizing the monthly payments of mortgage to avoid foreclosure of the property.

With the help of special forbearance the homeowner gets time to pay the mortgage amount or he pays the mortgage amount in further installments. According to the agreement the mortgagor has to provide valid proofs that he can pay that mortgage payment in the future. Special forbearance is generally given to mortgagors when they get unemployed. In such situation the mortgagor is given a short term special forbearance so that when he gets employed he will pay the mortgage payments. Whereas if a homeowner cannot pay the mortgage amount for a longer period of more than 3 months then long term special forbearance can be claimed.

A special forbearance option works well for most of the people but the major disadvantage of it is that the homeowner or the mortgagor has to pay higher interest and principal amount in future. If the mortgagor manages to pay the mortgage amount before the special forbearance comes to an end then he has to pay an additional amount to compensate the forbearance taken in the past. But if he fails to go with the special forbearance agreement then he has to face a lawsuit and pay fine for that. Special forbearance is a technique not known by a lot of people but people who used this technique declared it as helpful and beneficial in saving their home from being foreclosed.

Source:
Dubai Property

Kitchen is not one of the most obvious places to the outside visitors. Different countries have different customs. In some countries it is not considered a norm to visit someone’s kitchen, while in others people who eat at someone’s place clean the plates & dishes afterwards. This leads us to the conclusion that planning for a kitchen outlay can be for a fashionable purpose or on the other hand to easy the work load by managing it as a workplace. For whatever purpose you want your kitchen to be, there are some common things to cover while designing one. As with all the places in your house, you will have to start with two things. See first of all the space available in your kitchen.

Then see the purposes you want to achieve through your kitchen. Few of the most obvious ones include space, aesthetics, work flow management, compartmentalization, and comfort. For space obviously a layout will ensure that you can easily move around without any problem. Over stuffing the kitchen make it difficult to work for more then one person. Aesthetic starts with the comfortable colors that help you feel free. Cabinets should match your taste. There a lot of cabinet options available in the market from steel to wood. Flooring adds the extra look as well as light. Too shiny tiles would reflect a lot of light while too dull colors might dim the light. A suitable color of floor tiles should be chosen. Kitchen counters should be carefully chosen as they add or remove the space required. Kitchen counters should be reasonable for standing comfortably with ample space to work. Spread counters make it difficult to stand.

Next thing to make your kitchen cozier is the availability of light. It is important for any kind of workplace to have light. Extra light not only makes it easier to work but also lessens the burdened feeling of working. Paint also plays a vital role in lighting up the kitchen. A good paint is that which matches the aesthetic background set of the kitchen and also helps illuminate the kitchen more. Kitchen should also be well sorted to find all the hardware. People usually don’t like labeling the kitchen. Well if you are short of time and struggle finding things in your kitchen, then it is not a bad idea to get things sorted. All these little details will not only add to the beauty of your tummy filling workplace but also help you lighten yourself up while working in there.

When buying a house through auction there are many things to keep in mind before starting the process. The first thing to look at is the price of the house and secondly the purpose for which you are buying the house. You might want to buy the house for living in it, for renting it out or for reselling it. Well all these three reasons demand you to look for certain qualities in the house that would definitely help you easily reach any of these goals. Firstly if you are interested in living in the house, then you should inspect for the following. See what the amenities you are having in the neighborhood that your family might need and what kind of community you will be going to live in. Then also look at the price tag, jumping for an auctioned house is of no use, if you think the price is too high. Also try to have at least one detailed visit of the house to see what repairs the house has to be done on and how will these repairs be financed? On contrary if you want to rent out or sell the house later, then look at the immediate repair expenses against the rental cash inflow you will have and compare it with the investment you are going to put into that house. After this ascertaining, you can now look at the other things to worry about. See the budget availability you have. Always be sure how are you going to finance your home buy through the auction. Always keep in mind that auction can spin out of control so always set a price tag at the max you are willing to pay for the house. Once you have ascertained this, now you can go with the bidding. One last thing to consider at this stage is the resale value or an exit strategy. There are times when people just jump into a house buy but they don’t realize that it is very important to get out of it, if they buy it a very higher price. People get emotional especially during the auctions; in competition tend to over pay then the actual price. Never get carried away and use your EQ (Emotional Quotient) intelligently. Lastly it is very good to have a background check (if possible) of the people taking part in the auction proceedings. This will help you know firstly, what kind of buyers are interested in the home. It will also let you have a glimpse of why these people might be interested in buying the house, because by knowing that you will be able to know what kind of attractions the house has for sellers. For example, if majority of the participants in the auction are real estate investors, then you should know that the house is a good bargain for reselling. On the other hand, if majority of the buyers are ordinary people trying to get a home for there living, then the home is offering different attractions. This will also let you have an advance know how on what kind of competition you might face at the auction.

Source:-
Dubai Property

When you hold an FROR (First right of refusal) on a real estate property (or any other asset for that matter), it basically means the current owner of the property is obligated to offer you the property (to purchase) whenever he/she decides to sell the property. In case the owner sidesteps the person holding First right of refusal, and sell it to another buyer, the FROR holder can take them to court for reparation.

To understand how FROR works, let’s have a look at this example. Mr. A owns an apartment and rents it out to Mr. B. After living there for some months, Mr. B develops an interest in purchasing that apartment, for some reasons the transaction cannot take place straight away. However, Mr. B asks for an FROR agreement and Mr. A agrees. Now, once the agreement is signed by Mr. A, he is now restricted to offer this apartment to Mr. B before he finalizes the deal with any other party. For example, when he’s approached by a third party with an offer of say, $450,000 USD, and he is willing to accept, he must first contact Mr. B and make an offer for him to buy this apartment for the same amount ($450,000). It is only after Mr. B refuses to buy, when Mr. A will be free to sell the property to the third party. Remember, Mr. A can not ask for a better price, he must offer the property to Mr. B for the same price, which was being offered to him by the third party.

Question is why a seller in his /her right mindset would agree on presenting someone with an FROR contract. Answer is, because it doesn’t really hurt the seller in anyway. However, there are some minor plus and minuses attached to this contract. For example, seller can ask for a small amount as a fee for an FROR contract, also such contract may add a little value to the property. Coming to the negative side, real estate agents are reluctant to deal with such properties, in case the holder of FROR accepts the offer and make a purchase; the agent will be deprived of any commission whatsoever. However, the best thing about First right of refusal is that it doesn’t have some predefined clauses or terms, seller and buyers are free to negotiate and jot down their own specific conditions.

There are some modified versions of FROR as well, one of them is Right of First Offer, in which seller has to approach the holder before putting the property on sale.