| Real Estate Tips | | | | you get very little. They will rent out the house, may |
| Most "guru's" are currently spouting about how good | | | | inspect once or twice a year (some agents will |
| real estate investments can be. This article won't | | | | charge extra for this privilege) and you don't have |
| seek to reinforce their sales pitch, nor will it argue | | | | the choice of the tenants. Do it yourself and save |
| with it. Real Estate can be a great investment, but if | | | | the money. Pay a small fee to join online real estate |
| you not careful it can also be a financial disaster. | | | | black list - (this is a list that blacklists bad tenants) |
| You may ask who I am to speak on real estate. | | | | and you are in the same position as them. A real |
| Whilst not a multi-millionaire selling my next great | | | | estate first goal is not to please you but to ensure |
| book this article can give you some practical advice | | | | they get their cut - this may mean they make |
| of someone who rented out for over five years and | | | | decisions that are not in your best interest, but in |
| explain the pitfalls and the success stories. | | | | theirs (e.g. they may get kick backs from their |
| Important Lessons:- | | | | tradesman and other relationships - in my case they |
| 1) Good Insurance:- number one is not an option - its | | | | repaired a hot water cylinder without my permission - |
| a necessity. Ensure your asset is fully insure both | | | | the cylinder was less than a year old and still under |
| normal house insurance and extras like tenant | | | | warranty - thus I could of got it repaired for free, |
| damage and loss of rental income. Given a disastrous | | | | was I angry - you bet). Don't forget with agents its |
| tenant this can lessen the pain. Be WARN! Don't | | | | your house, if they are not keeping you satisfied, |
| under insure your house, if it burns down, particularly | | | | change agents. In regards to maintenance tradesman |
| if there is any suspicion of arson the insurance | | | | are hugely expensive, whatever you can do yourself, |
| company will do their own independent investigation | | | | do. For example, changing a tap washer is an easy |
| and here is the real kicker - THEY WILL CHARGE | | | | thing to do, some plumbers charge $100 just to pay |
| YOU FOR THE PRIVILEGE - thats right, read the fine | | | | a visit. |
| print, the insurance company before paying you out | | | | (Want to Buy and Sell Real Estate from home? Click |
| will minus their costs - i.e. $100,000 policy - $20,000 | | | | Here! ) |
| investigation means only $80,000 to you. Read the | | | | 4) There is more than Rent. Remember to factor in |
| fine print, the insurance despite their ads is not your | | | | the rise in real estate prices. You may be able to buy |
| friend if a million dollar house and therefore a million | | | | a cheap house in a country town, but if that town |
| dollars on the line, don't expect the insurance | | | | has shown no growth and is unlikely to grow then |
| company to be happy to pay out, if they can find a | | | | you will not be able to resell the house at the later |
| way to slime out of the policy they probably will. An | | | | stage for a much increased price. What creates |
| insurance policy is a contact make sure you read it. | | | | regularly increasing house prices is even increasing |
| Make sure you chose an insurance policy not just on | | | | demand. Be careful buying in places like a mining town |
| price but also on good reputation and on company | | | | or a town with one industry, mine resources are |
| strength. | | | | limited and one industry towns can turn into ghost |
| (Want more advice try Real Estate Underground - | | | | towns overnight if the main factory closes. Play it |
| Click Here!) | | | | safe buy in towns and cities where growth has been |
| 2) A bargain isn't always a bargain:- When purchasing | | | | and will continue to be good. Therefore don't just |
| a house remember to be very careful. Don't buy on | | | | consider the rate of return on investment in terms of |
| emotion. Never buy without visiting it several times | | | | rent, but also factor in capital growth. If there is likely |
| on different days and times. I know of a nice suburb | | | | to be little or no capital growth the rental returns |
| that has nice houses with big yards, but the smell of | | | | need to be higher - if they aren't, forget it and keep |
| the local slaughter house is enough to make you | | | | looking. When a place is vacant charging too high a |
| want to vomit. Remember you only become aware | | | | rent will ensure it takes weeks to fine a new tenant |
| of such things by visiting the house personally. Go at | | | | - every week it is unrented is costing you between |
| least one time without the real estate agent, speak | | | | $5-$10 a week in rent - (e.g. which is better renting a |
| to the neighbours and ask if they like living there. | | | | house for a year at $400 a week or $380 a week - |
| When buying a fix it upper check how easy it is to | | | | if the fails to rent for four weeks at $400 even if |
| fix up. Does it contain asbestos, lead paint or like | | | | you finally rent it at $400 you have lost out ($20 |
| harmful products that are going to cost you a | | | | extra rent X 48 weeks - ($960) (4x$380= 1520)- if |
| fortune to remove? Would you like to live there? If | | | | you'd rented it straight away at $380 a week - you |
| you don't then don't expect others to. Remember | | | | would have been $560 better off for the year) |
| whilst more expensive houses may cost more they | | | | 5) Good tenants are worth keeping. If you have |
| tend to attract better class of tenants and less | | | | good tenants who are looking after the house, you |
| maintenance costs as well as higher rental returns. | | | | don't alway have to keeping raising the rent every |
| Remember there are always more houses out there | | | | year with the general market increase - reward good |
| it the buyer is stuck on a price thats no good for | | | | tenants and increase your likelihood of retaining them |
| you, don't be afraid to walk away. Never buy a | | | | by giving them a discount on the market rate. If the |
| house on emotion! | | | | tenant puts in a garden and trees and other |
| (Want to learn more on fixer upper fortunes then | | | | landscaping, the capital value they are adding to your |
| click Here!) | | | | property may mean you should not hit them with the |
| 3) Do it yourself:- Unless you have a huge portfolio | | | | highest possible rent. tenants who damage a house |
| of real estate under your control try to do it yourself | | | | or fail to pay rent can cost a fortune. It normally |
| and you will save a lot more. If you engage a real | | | | takes 6 weeks or more to evict a non-paying tenant, |
| esate agent to rent your house they will charge | | | | that can mean a big loss, doubly so if you are paying |
| between 10%-15% of the rental income, in return | | | | the mortgage. |