Commercial Vs Residential Real Estate Investment

res-vs-commReal estate is anything that is in relation to the land or buildings which may be either residential or commercial or which includes any other small unit, and so the Real estate development means anything that is in relation to the development or construction of land or building like Malls, shopping complexes, schools, colleges etc.

However when it comes to deciding between commercial and residential property for investment, most of the buyers get confused, so it becomes very important go through both of these options and choose the one which gives you maximum return on minimum investment.

Before going through the pros and cons of both the options let us having a quick review on what actually they are.

Residential Real Estate

casvupshv4All kinds of apartments, houses of individuals, housing complexes, etc comes under the residential property. They are used by individuals or family members to satisfy their basic needs.

Commercial Real Estate

banner_overview_commercial_real_estateCommercial real estate includes those buildings which are mainly used for purpose of doing businesses.  Factories, industrial malls, retail stores, shopping complexes, warehouses come under this category.

Now there are many factors which need to be addressed for determining the better option. Some of these factors are:

Initial Funding

title-home-headerNow a day’s buying any commercial property requires a very high capital investment while in case of residential property buyer can borrow about 60 to sometimes 100 percent of the market price depends on the income of buyer and his credit history, so it plays an important role while deciding between commercial and residential property.

Financial Benefits

header-revisedIt requires less paperwork for buying or selling any residential real estate as in comparisons to commercial real estate. As well as in the case of securing loans from banks and other financial institutes it becomes much easier to do that. Also, the interest rates are very high for commercial real estate as compared to the residential one.

TaxPrepCategory_mediumRegulations and other Tax Benefits

There will be minor or no tax benefits while buying any commercial real estate while it is not true in case of residential one. Taking home loans on residential real estate will earn you several tax benefits based on your incomes and giving you the considerable tax saving options.

Location Advantage

development-headerA prime location is the deciding factor for the success of any commercial Real estate while buying it. But in case of a residential property that provides you an adequate infrastructure as well as some transport facilities will became advantageous because it attracts the interest of buyers.

National as well as Global Market Conditions

header (3)The future performance of your real estate investment primarily depends on the global as well as national level marketing conditions. Doing some research on current market rates and the recent trends will be an added advantage while buying any commercial or residential real estate. If the conditions are good and renting rates are low then the best option is to go for residential real estates and in case the interest rates are effectively high then choosing commercial real estate may gives you some handsome profit.

Real Estate Property for Corporate and Personal Needs

couple in front of one-family house in modern residential area

Real estate is currently the steadiest field for investment. Before investing, we need to keep a lot of things in mind which include major decisions regarding the property we buy, the purpose we buy it for and the resources we use to buy it.

Things to take care of

There are a number of things to take care of before settling on a property to invest in. We need to make sure we are not making any mistakes in the huge investment we are going to make. These things include:

  • Finances– We needs to settle down on a budget which is in sync with our finances. While taking loans, we must be careful to not bite off more than we can chew.
  • Taxes– The taxes cumulatively add up to a lot of money every month, so we should not forget about that.
  • Evaluation– We need to evaluate the property right so that we don’t get cheated into paying more than we are supposed to.
  • Long term valuation– We also need to know what the long-term trend of the property is likely to be. We do not want to buy property that will not be a good investment in the long run.

Prioritizing parameters

1416583020391We need to set our priorities straight according to our necessities. There could broadly be these following reasons to invest in real estate:

  • Personal relocation goals.
  • Personal investment goals.
  • Corporate ground goals.
  • Private business setup goals.

These are basically the reasons why people usually buy new property. Now, accordingly, we need to settle down on a few parameters to judge whether it is the best deal for the purpose.

Corporate purposes

Parameters to determine which property is good enough varies for different purposes. If it is an industrial or any corporate purpose, a team of evaluates and all the shareholders of the company need to come to an agreement on a plot. Usually, open plot is suitable for such purposes, so that the construction can happen according to the requirements of the business.

Personal purposes

Hispanic family outside home

In case of private purposes, where you just want to buy a house or apartment to start living in, or to keep as an investment for the future, here is what you need to prioritize:

  • Location– The location of the property is the most important parameter. You can renovate a not-so-good house or apartment in a good location. If you go for a wonderful apartment in a difficult location, sooner than you know, you will start regretting it for all the difficult commutation and your doubts regarding the safety of the neighborhood.
  • Area– A wonderfully furnished house is not that a big deal, but depending on your personal needs, the area is a factor. You can only adjust so much when it comes to the floor space.
  • Going renting value– When you buy property, if you don’t plan to relocate immediately, you should check out the going rent rates.
  • Fix-up expenses– Since you’ve already been advised to prioritize the location over perfection; you will need a budget to make up for that perfection part.

You can also take legal advice for depreciation and appreciation values so that you know the overall valuation of your property.

Making money in Real Estate

Investment on the real estate is one of the good ideas for any entrepreneur or businessman as real estate comes under the assets which have very less depreciation value. It is very important for any entrepreneur to know all the basics of real estate before any investment because real estate is asset which needs larger investment usually. Before investment and thing for this, you need to keep in your mind few things in details such as appreciation, raw land, income, inflation role in appreciation and others.

house plans

Talking about appreciation then it is one of the most common ways to enhance money which is invested on the real estate but there are plenty of ways to achieve it. The appreciation is achieved or not is mainly known by acts like refinancing and selling. Developing the land is main source of enhancement or appreciation of the property.

The Raw land is one of the main sources of the appreciation as it increases the rate of the property once any development had been done on it. Various ways are there to achieve appreciation on your property and one of the most common is developing by making building and houses on it. Another source is appreciation by discovering any minerals on it but it is not regular way to achieve money on it. The minerals such as bauxite, marbles, sand and others just enhance the value of assets remarkably. Some other ways are deposit of gravels, trees and others but they do not give much profit.

The types of income also plays significant role on investment and the investment on the type of real estate makes remarkable differences on the appreciation. Like talking about raw land then raw land generally rented for the production and agricultural activities on rural areas. The agriculture is one of the most applicable things on the raw lands on rural areas. The another operation is searching and discovering any material or minerals on raw lands and company provides all the essential equipment and tools for mining such as pipelines, pump jacks, and others.

The income from the residential property can be achieved by performing operations like installation of any structure and other things. Installation of cell tower and achieve income from that is one of the most common and easy way to get money from the asset and fixed amount of income is to be paid by your tenants.

Apart from all these, Inflation plays vital role in appreciation of the real estate. The appreciation seems not too significant sometimes but is solely impacts the economic value of the property.  For an example, if your forefather purchased any land of 1960 and at that time the value of that property was $1000 then it have worth many times of its real value today even though it is undeveloped or sat dormant. This is one of the common factors of the appreciation in real estate which significantly increases the value of the property without performing any development and other operations on it.

 

Florida Real Estate College

house-header

Florida Real Estate College is a South Florida
Real Estate School
, opened with two main goals. First is to offer a
beginning education to the newly licensed real estate associates. Second
is to assist experienced real estate consultants in retaining the skills
and knowledge needed to continue a professional real estate career.
If you have any questions about obtaining a Florida Real Estate License,
learning how to start in the real estate business, or how to grow your
real estate career, please feel free to contact Seth Rand or Jim Shriner.

we have trained many real estate agents from all countries as well as the USA

If you wish to sell property in Spain contact our agent in Spain they have training courses that offer how to sell high end real estate such as Villas in Marbella and off plan real estate training across Spain, we picked Spain as our first step into Europe as Spain is the Florida of Europe,as many northern Europeans purchase second homes in Spain, we wish you the best of luck in your new career

4 Ways a real estate attorney will save you money

aFinal

Fоr аll уоur issues related tо tax, уоu nееd tо seek thе opinion оf a rеаl estate attorney. In fact, іt wіll bе beneficial іf уоur rеаl tax attorney саn bring уоu a lot оf profits whеn іt соmеѕ tо investments thаt аrе related tо tax.

A rеаl estate attorney hаѕ a lot оf power аnd саn uѕе hіѕ power tо gеt уоu a lot оf tax related relief. Hе саn gеt уоu maximum benefits оn a раrtісulаr investment. Thе function оf a property tax attorney іѕ vеrу dіffеrеnt frоm thе function оf a rеаl estate closing attorney. Hоwеvеr, thеrе аrе ѕоmе common functions thаt аrе performed bу bоth.

Lеt uѕ tаkе a lооk аt hоw rе attorney саn асtuаllу save уоur money:

  • The rеаl estate attorney trіеѕ tо save уоur money аѕ muсh аѕ hе саn. Thеу tаkе ѕресіаl care rеgаrdіng thе issue аnd thеу ensure thаt уоu аrе gеttіng whаtеvеr deduction іѕ роѕѕіblе fоr уоu tо gеt. Thе state law consists оf ѕеvеrаl loopholes. Thе attorney іѕ aware оf аll thеѕе loopholes. Thіѕ іѕ whу thе payments thаt уоu hаvе tо make саn bе cut dоwn tо a сеrtаіn extent. Thеу hаvе nо rеаѕоn fоr existing, іn thе fіrѕt рlасе.

Thе rеаѕоn whу уоu gо tо a rеаl estate attorney іѕ tо discover mоrе аbоut thеѕе loopholes аnd tо Why-Real-Estate-Agents-Need-Social-Media-Marketingfind оut whеrе уоu саn gеt аwау wіth nоt paying. It іѕ important tо tаkе a safe route ѕо thаt уоu dо nоt еnd uр іn аnу sort оf trouble. Thе idea іѕ tо evade thе unnecessary payments аnd thuѕ save uр оn investment.

  • You nееd tо fіrѕt find оut a suitable rеаl state attorney fоr уоu. Yоur wavelength ѕhоuld match wіth thе wave length оf уоur attorney. Bоth оf уоu ѕhоuld bе аblе tо understand еасh other’s philosophies аnd ideals. Thіѕ іѕ vеrу important. Nеіthеr оf уоu ѕhоuld rеgаrd еасh оthеr аѕ unethical human beings bесаuѕе уоu аrе working оn a common саuѕе. Yоu bоth аrе dependent оn еасh оthеr – trу tо understand thіѕ іn thе fіrѕt рlасе. Thеrе ѕhоuld bе effective communication bеtwееn thе twо оf уоu.

Yоu muѕt bе аblе tо communicate сlеаrlу whаt уоu thіnk аbоut thе issue оn whісh уоu hаvе approached thе attorney аnd vice versa. Lооk whеthеr thе person whоm уоu hаvе zeroed uроn hаѕ prior experience іn buying аnd selling оf rеаl estates. It wоuld bе great іf уоur attorney іѕ skilled іn accounting аѕ wеll.

  • Attorneys whо аrе rеаl estate investors serve thе purpose wonderfully. Thіѕ іѕ bесаuѕе, аѕ property investors, thеу аrе constantly updated wіth thе existing rules аnd laws аnd thе nеw rules аnd laws оf thе tax market. іf thе attorney іѕ hіmѕеlf аn investor, thіѕ suggests thаt hе hіmѕеlf саn understand уоur priorities аnd уоur sentiments whеn іt соmеѕ tо investing.
  • Bestow уоur trust оn thеm tо find оut whаt thеу саn dо fоr уоu thе bеѕt. If уоu nееd thеm fоr a period оf tіmе, уоu саn аlѕо gо fоr a rеаl estate contract attorney.

Course Subjects

college-students_cut1_sm

REAL ESTATE EDUCATION 10 WEEK – 30 HOURS COURSE SUBJECTS:

1. The Making Of A Star – YOU!

2. MLS- Rules, Procedures, Classes, and Forms

3. Qualifying Purchasers

4. The Sales Contract

5. Homestead Exemption – How To Obtain

6. The Open House

7. Floor Time

8. Mortgage Financing

9. Multiple Offers

10. The Listing Brochure

11. What To Do When Working With Appraisers

12. The Personal Brochure

13. Purchaser – Plan Early To Ensure A Smooth Sale

14. Value Or Commodity “The Golden Rule”

15. View Closing Documents In Advance Of Closing

16. Deposits

17. Looking Into The Second Home Market

18. Finding Your Real Estate Niche

19. The Real Estate Newsletter

20. Targeting The Seniors Market

21. Real Estate Tax Tips

22. How To Be An Organizer

23. Seven Secrets Of Sale Success

24. Targets Of The Home Loan Process

25. How To Present Multiple Offers

26. Housing For Older Persons – 55 & Up

27. Sawgrass Mills Mall & South Florida Realty Center

28. Tips For Doing Unto Others In The Business World

29. Unmarried Couples Property Rights

30. Use Of Lockboxes

31. Showing Appointments

32. Competitive Markets Require Tactics

33. How To Show Listings

34. The Routing Schedule

35. Stay On The Right Side Of The Law

36. Pack Your Own Lunch

37. Secrets Of Direct Mail And Response Marketing

38. The Aspects Of The Sale Contract

39. What The Realtor Should Know About Financing

40. 3 Practical Steps To A Winning Real Estate Career

41. Interest Only Loans

42. Theory Of Skelativity

43. The HVD Settlement Statement

44. 2 Dozen Things You Can DO When You Think There Is Nothing To Do

45. The Cost Of Closing

46. Rates And Charges Of Title Companies

47. Net Sheet To Buyer And Seller

48. The Real Estate Closing

49. Affiliated Business Arrangement Disclosing

50. Pet Etiquette While Showing The Home

51. Top Ten Things Buyers Want To Know About The Home

52. Negotiating The Sale After Home Inspection

53. Foreclosure – “How To Save Your Home!”

54. Home Inspection – “What Buyers Can Expect”

55. Watch Your Mouth! – Careless Statements

56. How To Figure “New” Property Taxes

57. Know The Law – Signing Of Offer

58. Stigmas – What Must Be Disclosed (Murder-Aids)

59. How To “Inventory” – Sales And Listings

60. Tax Deductions – Equity Loans

61. Seniors And Services

62. The 40 Year Loan

63. Looking Down Payment Gifts

64. Tennis Anyone? – “The Fact Of The Court”

65. Reverse Mortgage Capital Gains

66. 33 Tips On Image

67. What’s On The Outside That Counts

68. Be Clear About Home Coverage

69. Credit Scores

70. Calculating An Earnings Goal

71. Your Own TV Show

72. Getting The Most From The Market

73. How TO Kick Start Listings – A Business Makeover

74. Feeling Stressed

75. Are You Too Busy For Success?

76. Know The Law – Tax Disclosure

77. Where Florida Buyers Come From

Florida Real Estate College is a South Florida Real Estate School, opened with two main goals. First is to offer a beginning education to the newly licensed real estate associates. Second is to assist experienced real estate consultants in retaining the skills and knowledge needed to continue a professional real estate career. If you have any questions about obtaining a Florida Real Estate License, learning how to start in the real estate business, or how to grow your real estate career, please feel free to contact Seth Rand or Jim Shriner.