Easy Entry Points Into The Property Investment Maze

The real estate industry is a lot like a maze. Like the most complex mazes, there are a lot of routes in and often only one truly correct path. Other paths will either take too long or lead to dead ends, and that’s exactly what will happen if you start off at the wrong point investing in property. You’ll get lost, trapped and confused before it’s out. What makes things even more complicated is that with this maze, the paths through are constantly in flux. One minute your best option is to buy apartments and the next, well, the maze has shifted.

This can make it difficult for new real estate investors with money to spend but no knowledge of how to make a property investment work for them. Today, we’re going to look at some of the easiest ways into the maze and ensure that you don’t make a massive mistake as you’re just starting out. There are a few choices to consider here.

Focus On Your Own Home

The first option and perhaps the best is to just focus on your home. A lot of people make a killing simply by selling their own property, and yes, this does count as a property investment. Let’s explain how this works and what you’ll need to do to see an ROI.

Okay, you might buy your home for around 100K. That’s great because it means, assuming you have a solid income, it won’t take that long to pay off. For that price, the mortgage repayments should also be under control as well, hopefully giving you spare savings each month. This means that you can put money towards renovations.

Before you buy the home, you should consider the roof. Certain roofs are very easy to renovate into a third floor. So, make sure you check this out, looking at how much headroom you have in your home. Hopefully, there’s quite a lot, and if that’s the case, you just need to upgrade the side roofing. This can be accomplished by a expert contractor and often you don’t even need planning permission.

You can also think about making changes to the kitchen and bathroom. Statistically, renovativations in this area will add the most money to the value of your home. Essentially, you just need to work on keeping it modern, fresh and exactly what new home buyers are looking for. Do this, and you can add around twenty percent to the initial asking value of the home, earning a nice little profit. It’s solid, but it’s not a massive investment so let’s explore another possibility.

Buy The Holiday Home

The holiday home option is ideally suited for people who have a nice little nest egg and aren’t doing much with it at all. For 200K you can buy a great holiday home in a variety of different places around the world. In fact, some holiday destinations have homes that sell for a lot less. Even if you don’t have the nest egg, you can still consider this possibility because you can borrow and then buy. Now, if you have a mortgage, you’re probably wondering how you’re going to afford the cost of that holiday home.

There’s good news on that front. You just need to start renting it out right away. If you buy the home in a holiday hotspot, market it will keep excellent standards, you’re going to make a fortune through the summer months on this property. Within a few years, if you don’t spend it, you can use the money you make to completely pay off the property.

There are only a few things you need to watch out for. First, do make sure that you use a property agent to find the right home to buy. You can view LJ Hooker for more info about this and what you should be looking for when hiring an estate agent. Basically, they can help you find the ideal holiday home for you at the right price.

The other issue is downtime. There are two types of downtime in the holiday home market. First, there are the off peak holiday times through the year. You can still make profits at this time, but you need to make sure you drop the prices. Watch other homeowners in the area to find out where roughly you should be targeting for charges. You also need to watch out for a hit on the market as a whole because holidays are a luxury commodity. If the market gets hit, people no longer buy those expensive trips to stay at your beautiful villa.

Invest In Student Housing

You may also want to think about investing in student housing. Why invest in this specific type of property? Students want the bare minimum. They want a nice, fairly modern place to live that is secure, and that’s it. So, you can buy multiple apartments, invest in bulk in wholesale furniture and kit it all out on a tight budget. As long as you keep health and safety standards on point, you won’t receive any complaints.

One downside is that students move out through the summer, leaving properties empty. You do need to take this into account for your costs otherwise you’ll be in for a nasty shock. The extra benefit? Students have guarantors who essentially act as safety nets. There will always be someone legally obligated to pay the rent and the bills, even if they can’t.

Go In As A Group

Lastly, one of the biggest issues with property investments is the massive risk that is attached when you’re handling huge levels of capital. To deal with this, we strongly suggest that you think about entering the maze as a group. By doing this, the costs are fractional and the individual potential losses minimal. But, if you all put the effort in you can still see the huge profits that people speak of when boasting about their own experiences on the property market.
We hope this helps you navigate this weird, wonderful maze, practically bursting with profit potential.

How much life insurance will your family need?

It’s easy to think that just because you have life insurance, that you have enough life insurance. However that couldn’t be further from the truth, life insurance is a very dynamic thing, just like our lives it should change as our life events change.

Today I’m not going to talk about what life insurance is, Here you can read a complete post all about term life insuranceInstead, I’m going to cover how to figure out how much life insurance you will need.

Before you start looking for life insurance quotes, you should determine how much debt you have and how much debt your future self may have. Are you guys planning for kids? Are you going to be purchasing a new home? Will your kids be going to college soon? Will you be getting married? All of these factors will change the determination of how much life insurance your family needs if you pass away.

To figure out how much coverage you should purchase, you need to do a complete audit of your everyday life which will help you figure out how much coverage you need.

I always recommend that my clients purchase at least 20 times their annual income in life insurance. The reason for this is because if your family is living on a $50,000 annual income and you pass away, that’s $50,000 a year gone immediately.

The insurance industry usually recommends that you only purchased 10 times your annual income. At $50,000 a year that will put you at around $500,000 in life insurance, that sounds like a great amount of coverage. However, the issue is that it only gives your family 10 years of income. It doesn’t account for paying off a home, paying off any additional debt, final expenses, or affording your children the ability to go to college.

At 20 times your annual income you would be leaving your family $1,000,000 in coverage. That would be more than enough to cover your home, allow your family to put some money away for savings, and also assist with paying for your children’s College. It would give your spouse the time to prepare for a new type of financial situation; like will they have to start working or how to deal with one income.

Your current age is going to play a significant factor in the amount of coverage you have as well. You want to make sure that you have a substantial amount of coverage when you’re younger because you’re going to have more debt when you’re younger. It’s always best to try to go for a 30-year term option if you’re under 50 years old. if you’re over 50, go for a 20-year term because it is going to be the most extended term available for your age.

You also want to be mindful to look for the most affordable rates when purchasing life insurance. You want to get the maximum amount of coverage whenever you’re looking to purchase coverage.

Make sure that you look at multiple quotes and make sure that you’re dealing with A rated insurance carriers.

Remember, life insurance is not for you it is for those that you leave behind.

So when you’re determining the amount of coverage you need, make sure it’s enough to cover your family not just for the immediate but also for the long-term.

Don’t Leave Your Loved One With An Empty Bag

Dying is inevitable, we’re all going to leave this earth one day. The sad part is, how we go is not up to us. We all hope we would take our final breaths surrounded by our loved one. However, this isn’t always the case, and for the majority of people, this will come true when their time comes. So before it gets to this kind of stage surely, we’d all like to make sure we don’t leave our loved ones with an empty bag. In this sense planning is the holy grail and nothing will substitute it. It isn’t as easy as we see in the movies when it comes to carving up our possessions and making everything clean-cut for the lawyers and such. Real life comes at your fast, and from angles, you sometimes can’t see. So you must be prepared to ride through the legal maze and not get lost. If you make a mistake here, there’s a big chance you could end up giving your friends and family the short end of the stick.

Who were your real friends

It’s a complicated question that buries itself back in our psyche. Can friends that aren’t our blood relatives be treated as such? Life is amazing, and in it, you meet people who you would be proud to call your brother or sister. But how much do they mean to you and do they deserve to be on the same level as your family? A clear conscious would say only the very few who have been with you through thick and thin. But you run into a conundrum because you’d like some things to be given to them if you pass away before they do. However certain things need to stay within the family such as items of sentimental value and property. However, you can give your friends cash lump sums and even other things like cars and music albums. Be mindful however that you do not cause conflict with them and your family who think they were owed what you left your friends. Have a conversation with both parties before writing anything into legal certainty.

Bypassing the banks

When you do pass away, the biggest gift you can give your children and other family members including your spouse, is the will that leaves them the property. It’s a popular belief but wrong, to think you need a bank’s authority to make this kind of large-scale transaction. Contrary to what the social consensus might be, you don’t need probate to take to your bank in order to secure the financial legalities. If you have a small state that you want to give to your loved ones and it’s of a value that’s under $150,000 you can utilize one of the methods that are an alternative to probate. For example if you had around $100,000 in a bank account but there was no beneficiary stated in the account but you did state them in the will you wrote, the firm will prepare the individual to execute an affidavit that will force the bank to release the funds to the person you solely named in the will. It’s a commonplace to think you need the bank but it’s just not true, only for higher amounts will the bank need proper sign off that legally satisfies them according to their policies. For smaller amounts, you can bypass the banks and make sure the money gets to the right person.

Inheritance laws

When leaving behind a large cash lump sum or an estate, one thing you’ll need to check before signing anything off on your will is the inheritance tax. This tax varies greatly among countries, states and sometimes regions. Put simply what this tax does is take a certain percentage of the money and value of the property that you are leaving behind for family members. There are thresholds with different values and circumstances. Much like the tax bracket, this tax behaves in a tiered response. It’s wise to check what bracket you fall under before you make the true estimate of what your wealth truly amounts to. Inheritance tax will also come with its own laws such as the rights of a particular person such as the spouse. However, if you have children, you can set your preference to be them first rather than your martial companion.

Of course, it goes without saying that planning is the end all be all when it comes to formulating a will. However laws change all the time, and this is why you need to make sure you are taking advantage of loopholes and technicalities wherever you can. It’s not like you’re cheating, you just want to give the best of your life to the people you love and not leave them holding an empty bag.