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Reversionary Property Investment

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When it comes to building a diversified property portfolio, many investors consider a reversionary property investment. Especially beneficial for the medium and long-term, a reversionary property is a good option as it offers a host of advantages. The fact that its unheard of for property prices to decline 50% below their current value makes investing in a reversionary property worth considering.

What is a reversionary property investment?

A reversionary property offers potentially high returns. Reversionary property investing refers to the process where an investor purchases the reversionary interest in another persons property, typically their home. This means they are purchasing the rights to own the property upon the death of the owner or when he vacates. In short, the property reverts to the buyer.

Types of reversionary properties

There are two types of reversionary properties: tenanted and untenanted. Tenanted is when the homeowner stays in the premises while untenanted is when the seller isnt residing in the house. In the second type, the buyer can choose to rent out the property.

How do you obtain a reversionary property?

In a reversionary property investment, you simply buy a residential property from a homeowner at a significantly discounted price usually around 50% of its value, depending on the sellers age and the propertys location and features. Payment can either be made through cash lump sum or in monthly instalments or a combination of both. When payment has been handed over, the homeowner continues to reside in the property as a rent-free tenant with full legal rights to stay in the house.

As long as he continues to stay in the house, he will be responsible for the general maintenance of the property, the utility bills, building insurance premiums and capital tax. Basically, reversion investments are a bet on the life expectancy of the homeowner. Meanwhile, the buyer of the property pays the monthly reversionary annuities until the death of the homeowner. When the homeowner dies or when he decides to leave, the propertys ownership reverts to the buyer.

Who benefits from a reversionary property investment?

Both the homeowner and the buyer benefit from a reversionary property. The homeowner-seller receives additional income in the form of a cash lump sum or monthly payments which could significantly supplement his pension. The setup will also provide him a lease that will endure until he passes away and he is freed from the responsibility of shelling out big payments such as land tax. In addition, he doesnt have to put up with the usual anxiety associated with selling his own property or moving out, allowing him a stable and secure state of mind.

For the buyer, the reversionary property presents an excellent opportunity for him to acquire a property at a huge discount. Most of these reversionary properties are apartments, studio flats, villas and commercial buildings situated in prime spots thus making them well-suited for buy to lets.

A reversionary property investment is certainly one of the least bothersome ways for any property investor to invest.

Does Real Estate Property In Singapore Presents Scope For Investment

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Singapore presents an enormously growing real estate market and it offers plenty of scope for the international property buyers to make the investments. If seen from the perspective of futuristic property buyers, Singapore offers remarkable opportunities in real estate investments. The interest rates and SIBOR (Singapore Interbank Offered Rate) for the properties are quite low and this is one of the reasons why international property buyers are exploring Singapore market.

Whether it is about building the plush condominiums or flats, home planners are taking interest in the property market of Singapore. They have their own good reasons too! One of the objective reasons is probably to make the investments for future. There is no point in doubting that Singapore property market will grow at an alarming rate. The estimated ROIs from property investments are likely to witness exponential growth in times to come.
Property investments in Singapore should be seen as the long term investments. International investors should keep in their mind that the world economic scenario is changing, and this change will bring several benefits in Singapore property market.

There are 4 significant reasons behind the rise of property investments in Singapore. These include:

Efficient governance The government of Singapore is offering commercially viable surroundings for the international property buyers. The ease of investment together with possibilities of lending at lowest interest rates obviously gives buyers sound reasons to look forward to invest in the Singapore market.

Future growth investment- Singapore real estate market offers tremendous amount of scope for the future growth and development. If you intend to buy the investment property which is situated in the area where government has scheduled a plan for development, the property is likely to see the surge in value. Your investments will grow.

Options available – A prospective international buyer can think of investing in the shop houses, or resales, or new launches, Singapore market offers it to you. These options have given hope to the property buyers to grow their prospects.

Crowdfunding opportunities Singapore offers several Crowdfunding opportunities to the international property buyers. Investment options galore in the Singapore. If you are thinking of venturing into property investment, Singapore is indeed the best place to start with.

You need to think and work out the ways, which will help you to make the investments grow in value in Singapore in the times to come. Property market follows a cyclic trend and you will get maximum benefits and returns.

Some Excellent Tips To Buy Property In Mohali

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Most people often have a dream to own home but due to the rising property prices, it can be a tidy task. However, people still buy homes but there are some smart tips which should be considered by everyone in order to buy property in Mohali. Several options are available for the people in Mohali but location is the main issue which decides the right cost of every property. It is always suggested that one should do some research so as to find some best locations and areas which are suitable for comfort living. Shops, schools, healthcare centers and banks should be close to property for your future convenience.
As the property rates are increasing with every single day, some people often think of buying old homes for sale. It is a good option but if you have searched properly. You need to scrutinize the intricate defects in the building or home by inspecting it properly. Actually, every property has some small or major defects, so it is your responsibility to check the premises up t your satisfaction. Structure of building is also essential, so do consider it as well. If you are looking to purchase property in Mohali and your financial condition is good then it is better to pay high premium. In fact, if financially you are good then it is suggested that one should buy a corner flat. It is advantageous in long term.
There are several people who often plan to buy land in Mohali but it is also true that land is really an expensive option. Apart from pricey nature, you cannot enjoy several other facilities which are provided in apartments or flats. Facilities such as 24 hours water, electricity and security are not in the option of land. Same concept is for the people who plan to buy plot in Mohali but if you are buying land only for investment then it could be advantageous.
There are several property dealers available in Mohali and you can buy Kothi in Mohali by approaching a reputable real estate agent. Before buying a Kothi, make sure to check the surroundings. Usually, the flats are positioned at good locations and sometimes with lush green valleys. You can view all the available projects in the city in order to buy flat in Mohali. So, book your flat now but make sure to pick a right floor. It is good to buy a ground floor but it depends upon the availability.

Trouble-free property sales, purchases and commercial property management in Brisbane

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The most important, and most expensive, purchase most of us make during our lifetime is our home – whether it’s a modern city apartment, a pretty suburban house or a heritage home somewhere in a rural area of surpassing beauty. Those in the know have been known to state that the third most stressful activity for us humans after death and divorce is buying or selling a residential property. It’s not just the paperwork, the search for the right home or the right buyer and the stress of the move itself, it’s because, if we’re buying, it has to be perfect and, if we’re selling, we’re letting go of a part of ourselves.

Everyone’s heard the best-known buzzwords in the real estate sector by now – location, location, location! It’s only too true, and only too tricky to get right without professional help. If local authority planning offices aren’t checked carefully, that magnificent view over green acres can turn into the latest version of condo-land or a factory estate almost overnight. Establishing correct land titles and other legal nightmares aren’t for amateurs, and a brand new paint job inside and outside doesn’t mean the foundations are safe!

Over the years, estate agents in general haven’t had a good press, perhaps unfairly in a good few cases. Many real estate agents are long-established family businesses now being run by the adult children of their founders, and know the community and its housing and commercial stock as well as their own back gardens. They’re caring, trustworthy and professional, and finding a good one isn’t that tough, especially if you live in Brisbane. If you’re looking for a choice of real estate agents, Brisbane is well supplied with a long list, and you’ll find Calibre Real Estate right at the top.

These good people don’t just care about profits or targets as to the number of homes sold! They care about the buyers and sellers as regards finding them a home they’re overjoyed with or the right price as part of a hassle-free sale. They’re also experts in property management, offering a first-class service to buy-to-let investors, commercial property owners or those needing to let their home in order to work elsewhere in Australia or overseas for a period of time. For the letting of commercial properties, an experienced Brisbane property manager is essential, and Calibre’s team will take care of everything including overseeing rental payments and dealing with maintenance issues.

Leasing, whether it’s a commercial property or rental home, is a complicated procedure best left to the experts, and involves maximizing rental yields as well as making sure the lessee is financially viable. Time frames are important, as property standing empty can deteriorate fast as well as generating no income. Calibre’s excellent marketing strategies utilize signage, print, online and email marketing to their broad database of clients as well as to prospective tenants.

Throughout the process, owners are kept informed of the level of interest garnered by ads and enquiries by interested parties, and advice is given on any adjustments to the strategy which might be needed. Importantly, your approval will be needed before any changes are made. Once a tenant has been found, Calibre can undertake all aspects of property management on your behalf, with bi-monthly financial statements and reports by email and regular post all part of the service. They’ll also take care of maintenance issues and all payments related to the property such as insurance, water and council rates, leaving you to relax and enjoy the income without worry.

About the Author

The Author is an expert Property Management and focus on Property Brisbane property manager.

Buy Residential Property In India – After Knowing The Buying Process

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Before you buy residential Property in India, knowing the buying process is necessary to strike the right deal. The property market in India is reportedly back in the saddle after the slump in the recessionary phase of the market. In the new phase, the property market in India, both residential and commercial, is abuzz and agog with deals and talks. In the residential property sector alongside the recession, there evolved a new interest area in the lower and middle-income-level sector. Hence, there is a priority shift among the construction and infrastructure development groups from premium luxury apartments to medium-sized 2 and 3 BHK units. In the renewed interest in the residential property investment, inexperienced investors may suffer due to a variety of reasons. Therefore, I am of the considered view that prospective buyers who are novice in the field need to gather relevant and required information before they venture in to the field.

I apprehend you may be skeptical when I suggest that you should buy residential property in India only after knowing the buying process. This is more relevant in the urban context than in the rural sector where seller identity and property title may be more or less ascertainable. The case is not so easy and cozy when you approach most of the urban properties. And the proverb goes, a great city is a great desert. In urban centres, individual identity may be in most cases shrouded in obscurity. So may be the title of properties. Hence, it is better to avoid offers from parties of obscure identity and those who suffer from low reputation. Also, take steps to ascertain the title of the property. Further, you need do ensure that the property is free from any encumbrances, charges, claims, defective title, any order of acquisition or requisition, etc.

As part of knowing the buying process in order to buy residential Property India, you need to identify the ideal property which can afford better appreciation within a time-frame. For this you need to know the proposed developmental projects due to come up in the region. Then you can select the right property in view of the possible appreciation the proposed projects would fetch. It is always advisable to consult a few real estate consultants, dealers or agents in the locality so that you could be briefed on relevant aspects. Further, while you select property, it is better to consider the infrastructural facilities, landscape, scope for further development of the neighborhood, etc. Further, if it is a flat or apartment unit, you need to know the rules and regulations of the society or management before you strike any deal. It is because there may be some regulations or requirements that might hamper or be detrimental to your free and fair possession and enjoyment of the property.