Real Estate Info

Posts Tagged ‘Estate’

You must have heard about those real estate investors, who purchased some property at extremely low prices, in a relatively lackluster real estate market. Then for some reasons the property prices soared and the property owners earned huge profits in no time. They are some lucky guys? Aren’t they? But before you start envying them for being the fortune’s favorite, let’s get your facts straight. The fact of the matter is that it is the market analysis and foreseeing capability that makes the difference, more than luck or fortune. Real estate market plays an important role in the process of property valuation, even more than the property itself. Therefore, next time when you are about to invest in some residential or commercial property, spending some time in evaluating the market can make huge difference.

An overview of the market and economy:

Have a close look at the ongoing situation of real estate market; do you see a bullish or bearish trend? Do you think this trend is going to continue in coming days or there are some signs of change? The overall economy has a direct effect on real estate as well, if there is economic growth in some regions, real estate prices are supposed to grow as more and more people and businesses will step in to take advantage of the growing economy. If you can retain a residential or commercial property or even some vacant land in this region, it can bring huge yields. Projecting a bullish or bearish trend is not an easy task unless you have got the drift of economic ups and down. However, you can take help from some experts (though, they might get it wrong as well).

Vacancy rate, Rentals, Prices:

If you are looking for short term investment, where you wouldn’t have to wait for longer period before you start earning, then look for these indicators. Vacancy rate of a real estate market is obtained by dividing the unoccupied units to the total units available in the market. You can have an idea of the existing property prices and the possibility of rise or decline in rentals or property prices, in near future. A significant change in mortgage rate can also boost or reduce sales.  

You should also check for the infrastructure and development work going on in the real estate market and adjoining areas, in particular if some big companies have recently entered or left the market.

Even with the news of price decline from majority of the property market, buying a real property is still an expensive purchase by any standards, especially if you are talking about one of these expensive markets. Do you think being in the list of the “most expensive real estate markets” is good or bad? Answer to this question is debatable, however going through the list and looking at the prices in the cities like London, Moscow or Tokyo can give you a kind of breather (or nightmares if you happen to be a buyer looking for a piece of property in these cities).

If you thought property prices in cities like Dubai, Singapore or Mumbai are way too high, you must take a look at the prices in London, Monte Carlo or New York. This might gives you an idea, what really is “expensive” in real estate terms.

London:

Often dubbed as the most expensive city, London lives up to its reputation in real estate sector as well. From the property prices to the cost of living, food to transportation, capital of England is not for faint hearted consumers. Property prices are always on the up due to high wages, high demand, and low supply (unlike other developed cities, London doesn’t have a profusion of skyscrapers). West London and Central London are the most expensive areas in city of London.

Monaco:

Monaco, mostly famous for its tourists attractions (and most famous among these attractions is of course, the casinos). The main residential area is called Monte Carlo, and the average per square meter price in this area is actually higher than London. Monte Carlo enjoys the highest property prices in the world, thanks to its no-tax policy that attracts the cream of the crop (rich celebrities and business people).

Hong Kong:

Rich culture, one of the world’s leading economies, and a very impressive skyline, Hong Kong is the most expensive real estate market in Asia, and it might be competing with the top real estate markets in the world if Chinese economy continue to grow at this speed.

New York:

Despite a sharp decline in prices, in the first quarter of 2009, New York property still rates among the most expensive ones in the world, though it may slip further on the list as the prices continue to fall due to the financial crunch. Manhattan, which is the most desired area for property buyers in New York, has recently witnessed a decline in both property prices and sales.

Starting as a real estate agent is easy; it doesn’t require some specific qualification (at least not up till now). Also you don’t need to invest a lot of money. All you need to do is to assist your clients in buying or selling some real estate property (home, shops, villas, and apartments) for a commission. Most of the clients are naïve when it comes to dealing with real estate professionals; as a result real estate agents often get away without providing the complete set of services, they’re ought to provide. When you hire a real estate agent, you must be aware of the basic responsibilities that you should expect from your agent. Some of the standard tasks are …

Knowledge and compliance with Real Estate regulations and policies:

Every country has its own set of laws to regulate real estate sector, your real estate agent must be aware of these policies. For example, one of these laws is to treat all clients equally without any discrimination. In case a client feels that he/she has been mistreated because of their race, religion, color, gender or nationality, they can contact the concerned department and register a complain. Other important regulations include license, tax, purchase agreement and registration, etc.

Trust & Privacy:

A real estate agent is obliged to protect the privacy of its clients. You cannot disclose any part of the information without their consent; neither can you make use of that information for your own purposes. On the other hand, a real estate agent must not conceal facts related to a particular property; it is against the professional integrity of this particular business.

Relevant Statistics and Knowledge:

People hire real estate agents because they feel they are not experienced enough to carry out such deals, therefore a real estate agent must be an old hand in this industry. He/she should be able to offer ample experience and data for customer’s satisfaction. Their responsibility doesn’t end on showing the property for sale or rent with required specification, they are also responsible for guiding their clients in the best way possible. A real estate agent is required to help you with negotiations, home inspections, appraisals and agreements.

Difference between a buyer agent & seller agent:

There is not much difference between the basic responsibilities or the nature of the job, when we compare between the buyer’s agent and seller’s agent, except that they are working in different directions. However, the above mentioned obligations such as fair & respectful conduct, privacy, trust, and complete guidance apply on both types.

Real Estate has turned out to be an awarding career for many; still many opt for this career without acquiring any kind of degree or education, which was justified some years ago as there were not many real estate programs being offered at universities. However, now you can easily find universities offering such programs in many developed countries. Masters or Real Estate Development (also known as Master of Science in Real Estate Development) is one such degree, being offered in various universities all around the United States. If you’re interested to go for real estate as a career, Masters in Real Estate Development (MRED) is the kind of education you must consider before trying your luck in this field. Some of the universities offering this program are University of Utah, Arizona State University, Columbia University, University of Miami, University of Southern California, etc.

The syllabus for this particular program focuses on market analysis, finance, project management and design for real estate developments. Idea behind this extensive program is to prepare professionals with practical skills to carry out all sorts of tasks included in real estate  development process, from planning to oversee the construction work. Some of the subjects included in this program are Market Analysis, Finance Fundamentals, Real Estate Project Management, Construction Management and the likes. Also the industry specific courses like Real Estate Law, City Planning and Architecture are included.

It’s interesting, how for a long time real estate was neglected as a specialized subject in schools and universities. Real Estate plays a very significant role in the economies and financial markets in all parts of the world. It deserves as many qualified professionals as any other sector. However, for years people had no other option but to acquire the regular MBA or a similar degree and get into the field having no clue as to how the real estate market works. Thankfully, that’s not the case anymore. Universities and institutes are gradually starting to realize the importance of qualified professionals. Now we’ve got the institutes like Cambridge University, Hong Kong University, London School of Economics, Meikai University and European Business School offering programs like Master of Real Estate, Masters in Real Estate Finance, Master of Arts in Real Estate and Master Program in Real Estate economics.
Masters in Real Estate Development is the ideal course for anybody who is looking to pursue a career in a market where lots of new constructions are in pipeline or under progress (hint: Dubai). Because of the shortage of qualified professionals, one can expect to get a job without delay after getting hold of this degree.

Real Estate commissions are service charges that a real estate agent or broker charge for assisting you in buying, selling or renting a property, and that’s the main source of their income. Normally, a real estate agent will talk of these commission rates as a fixed percentage of the whole amount. In reality, these commission rates are not fixed and you can (in fact you should) negotiate and reach a deal before you finally hire an agent. To know what the average commission rate is in the market, you must consult a number of real estate agents and compare their services because at times real estate agents refuse to offer some specific services, when they are working on a reduced commission rate. Therefore, when you’re fixing the commission, you should ask the agent to provide you with a list of services that you can expect to get in this fee.

Do you really need a real estate agent?

Even before you go out searching for a real estate agent, make sure you really need one. For example, if you are hiring them solely for property search or you want them to show you available homes for sale or rent, you can easily do it yourself, as a number of websites now offer free property listings for almost all cities in the world. You can just search for the property with your required specification and contact the property owner directly. Similarly, if you are looking for an agent to sell your property, you can try doing it yourself by placing an ad in those property portals. That doesn’t imply that real estate agents are of no use, it’s just that you don’t always need to hire a full-service agent all the time.

Normally real estate agents ask for a specific percentage as their commission; however there are companies who demand a flat rate. You can make a choice between both of these options if you’ve got a clear idea of the amount that will be involved. Do not make huge upfront payments or you’ll be stuck with that agent for a long time even if he/she fails to deliver, and always check for the real estate license issued by the concerned authorities before making any sort of payment. The situation of the market also affects the rate of commission, if the market is slow then you may get a real estate agent at lower commission rates, if there are lots of transactions taking place, you may find it hard to hire an experienced real estate agent at low rates.