Tag Archives: Investment

3 Rules You Must Be Aware of About 1031 Exchanges to Get Approved

Couple with investorOne of the hottest topics investors and businessmen are discussing is the 1031 exchange. It is also called the “Like-Kind Exchange” or the “Starker” and is simply defined as the swap of one investment, property, or business for another.

The 1031 exchange allows businessmen and property owners to do the swap without being taxed, or at least get a much smaller tax. There are rules that you must follow to get approved and avoid getting repealed and today, 1031 Exchange Place is going to discuss what those are.

1. The Exchange

Despite the term “Like-Kind,” you definitely can exchange your business or investment for a different type of property.

For example, you can exchange your apartment building for a strip mall, a raw land, or even for a ranch! You just have to make sure that you are eligible for the exchange and that the investment or business that you are exchanging for is qualified for 1031.

2. Delayed Exchange

Finding someone who owns the property that you want and them wanting your property in return can be difficult, which is why delayed exchanges are acceptable.

You would have to find a middleman to hold the cash after you sell your property, That middleman is considered as the intermediary, which will be then assigned to buy the replacement property using the escrowed cash.

3. Replacement Property

Since we have talked about the delayed exchange above, we should then talk about the timing rules that you would have to be aware of when it comes to this type of exchange.

The exchangor must identify the replacement property that he wants to acquire within 45 days, and the transfer must be closed and done within 180 days. It is possible to designate three properties, as long as you make sure that you eventually close one of those.

Knowing the DO’s and DON’Ts of a 1031 exchange will save you from getting repealed when applying for one. Do your research and follow the rules to get approved ASAP.

2018 is Promising for Singapore’s Property Market

Singapore city skyline at night

Singapore city skyline at night In Singapore, home ownership is a valuable symbol of independence and financial stability. The local property market in the country for 2018 is now a promising venture especially for those who intend to fulfil their dreams of private home-ownership.

The trend for home prices in recent years has been a steady decline, making more homes affordable for many people. Many experts explain that this decline has been largely due to the government’s efforts to regulate property prices.

However, there are other options for those who want to invest in Singapore’s promising real estate market. One of these is leasing property or land for commercial or residential purposes, which can be a good way to generate revenue.

This is where land and property lease in Singapore comes into play. Property investors now have the choice to lease their property for residential or commercial purposes. In such instances, the government needs to work with property developers to determine the amount payable to the government.

The land lease agreement

Singapore property buyers are familiar with the land leasing agreement for many years. First, the initial amount is considerably more affordable than a freehold property.  Depending on your needs and preferences, you may find that a land lease is an ideal agreement if you intend to purchase a more suitable property later.

Why you should consider leasing

Since 2015, the rental for many properties have gone down in value as the number of vacant properties has increased year on year. Many property buyers could take advantage of the lower home property prices; though residential leasing remains doubtful, commercial leasing remains a promising venture for many investors.

Experts predict that the market will double in the next decade, and so the best time to invest in property in Singapore whether leasing land or buying properties is now.  Besides, for those who want to experience home-ownership would find the values more accommodating now than a few years from now.

Northeast Tennessee Home Sales Reach $1B So Far in 2017

For sale sign in front of a house

For sale sign in front of a houseHomebuyers in Northeast Tennessee may have an easier time to look for properties, as the region’s housing market is tipped to set another record year for sales, according to the Northeast Tennessee Association of Realtors’ (NETAR) report.

Home prices in Northeast Tennessee during November fell by $3,689 to $169,452 year over year, while sales for the month increased 7.6% to 496 properties.

Record Year

NETAR’s report partly based its findings on property sales in five counties in Northeast Tennessee. For the first 11 months of 2017, there were 5,777 transactions exchanged possession. This may allow the market to sustain its record from last year, when sales amounted to its $1 billion.

Washington County registered the highest increase in average home prices, which rose by $16,960 to $228,693. In Johnson County, the average home price increased the most by more than $42,900, although prices remained the cheapest among the five counties at $128,244. If you want to buy elsewhere in Tennessee, the market in Nashville may be a good choice coming into 2018.

Nashville Market

Realtor.com expects home prices in Nashville to decline next year, as more homes are sold in the city. Prices have been trending upward due to a limited supply of homes. However, the forecast only considers higher sales for listed home prices worth more than $350,000.

Entry-level property prices may take a long time before noticing any slowdown in growth, as first-time buyers make the most of low-interest rates from lenders like a mortgage company. Mortgage Investors Group noted that Hendersonville homes could be another option if you find Nashville to be a pricey market.

Whether it’s your first time to buy a house in Tennessee or not, it may be better to secure financing to close out a purchase faster than rival bidders. Where do you plan to acquire a residential property in 2018?

 

3 Smart Moves to Making the Most of your Rental Properties

Rental PropertiesRental properties make an excellent investment since they require relatively less hand on management for the owner. You can delegate the management duties to a professional firm or hire a property manager.

Although proper management is critical in realizing your investment dreams, overlooking some crucial factors when acquiring the property could lower your income. Rookie buyers often rush to close a deal without carrying out proper research, and it counts against them.

Do not buy in the wrong neighborhood

Your property is immovable and should you make the mistake of buying in the wrong location; you are stuck with it. Consulting a local expert keeps you from making a purchase in the wrong neighborhood. Some localities decline with time, and this fact can be lost on an outsider. The presence of industrial development could mean noise and environmental pollution and could lower the appeal of the property. Looking out for similar red flags keeps you from making critical mistakes with your investment.

Do not buy a rundown property

While it might seem like a steal, buying a dilapidated building does not always translate into a brilliant investment. The costs of innovation might overrun your initial budget and have you operating at a loss. Have an expert appraise such a building and get accurate costs of repair before making a commitment. Alternatively, a turnkey rental property offers better investment solutions since it requires no additional input from your end.

Do not forget to set the house rules

Hoarders, loud neighbors, and annoying pets are some of the unlikely factors that can lower the appeal of your property. Have a legal expert draw up reasonable house rules and make sure tenants accept the terms before moving into the unit. Lack of a piece of mind can lower the occupancy level and reduce your income.

Keeping your rental units profitable calls for a considerable amount of effort as well as planning. By avoiding common mistakes, you get to realize the full potential of your real estate investments.

3 Key Factors when Buying a Property

Property BuyingBuying a property is a lot of work. In fact, the whole process can drain you — from searching for the perfect location to moving to your new home, you need to make smart decisions to avoid costly mistakes. Learn some of the key factors when buying a property and how to protect your investment in the future.

FACTOR 1: Hiring a professional service

While hiring a property manager or a real estate agent is not always necessary, this is probably your safest bet for your investment. They can help you find a house that suits your budget, and even fix all the documents needed when leasing or buying a property. Keep in mind, though that you still need to do your homework. For example, you may need to bring up the best way to buying a property through SMSF. They should know the process to protect your overall investment and prevent unnecessary risks.

FACTOR 2: Setting your budget

Set a realistic budget plan for your property investment. Compare your monthly income and future expenses. Know your limitations. The general rule here is to never buy a property you cannot really afford. Check your credit score, as well. This should put leverage on the properties you can purchase. Remember, buying a house is big commitment. Make sure you can settle your monthly payment on time to avoid penalty charges.

FACTOR 3: Considering the location

Whether you’re looking for commercial or residential properties, location is one of the biggest factors. Accessibility and security should always be on top of your list. Take some time to observe the environment. What are the amenities they offer? Are there schools or hospitals nearby? Be familiar with the community. Are you comfortable with the neighbourhood? This should help you with your decision.

These are just some of the factors you should consider when buying a property. Keep in mind that this is probably one of the biggest financial investments. It only makes sense to take your time and weigh your options.

A Beginner’s Guide to the Glitter of Diamonds: A Worthwhile Investment

Diamonds

Diamonds Diamonds have piqued the interest of so many for its beauty and rarity. After all, they literally have to be dug up under tons of earth to be found. As they say, nothing compares to the exquisite charm of this precious stone.

A worthwhile investment

Diamonds prove to be more than a piece of luxury to be looked at or worn; many people see it as a worthy investment. In fact, the demand for diamonds has risen in the Indian and Chinese markets. Several diamond auction pieces have also fetched spectacularly large sums in winning bids. There are even moves to create new diamond-backed mutual funds in the same way that gold and silver are used as security for investments.

This precious stone gives the owners a way to liquidate quickly, as several reputable jewelry stores accept diamond pieces as collateral for a loan. This is especially helpful during financial emergencies. These stores are also the go-to places for people looking for genuine diamond pieces, as the ones they sell have been appraised and checked for genuineness. If you need diamond jewelry and a loan, you can approach your local jewelers.

What to look for when buying diamonds

Before making this sizable purchase, there are certain things a buyer needs to know. The most basic of these is to know and understand the most important characteristics of a diamond: the 4Cs.

Cut, color, clarity and carat

A diamond’s color tells its value. The best ones are colorless, and the prices of near-colorless or faint yellow to yellow ones are significantly lower. While yellow ones may be apparent to even untrained eyes, it is best to consult a professional as to how “colorless” a diamond is.

Clarity refers to how perfect a diamond is. The fewer the blemishes, scratches, or bubbles, the more expensive the jewel is. The price is simply based on the precision it took to create the diamond.

A diamond’s cut dictates the way it sparkles. The cut shows how light enters into the jewel, which ultimately results in the diamond reflecting the light in dazzling colors. Even a lower-grade color and clarity can be compensated by an expertly cut diamond.

Carat refers to the weight of the diamond. Each unit is 0.20 of a gram. A carat does not determine the scintillation and brightness of the diamond, though. As such, a heavier diamond does not always mean a prettier one.

Diamonds are forever

As the saying goes, “Diamonds are forever”. If you are looking for a worthwhile investment, it is best to hunt down the best diamond pieces available from your local jewelry stores.