The Wisdom Of Investing In Property

The Wisdom Of Investing In Property

There is little doubt that it makes good investment sense to buy real estate. Owning property is a great way to generate a continuous stream of income. Furthermore, real estate routinely appreciates in value with the passage of time, something everyone can get behind.

Perhaps you will use real estate as one of the pillars of your overall wealth building strategy. Of course, it is important to be fully prepared before entering the realm of real estate investing. In contrast to other types of investments, real estate requires real expenditures in terms of the initial purchase, property taxes, maintenance and more in order for it to be an income generator going forward.

It is also worth noting that there could be lulls in the income stream if a property lacks tenants for a given period.

Here’s an excellent guide to help show you the steps;
Simple Ways to Invest in Real Estate

Cash Really Is King
It is common for investment gurus to caution investors against using borrowed money to obtain properties. This is advice that should be carefully reviewed prior to buying a rental property. It is far better to build enough reserves to make this purchase in cash.

It is important that if financing is needed, the payments on the loan are manageable, even if the property should sit empty for a bit. Otherwise, the property can become a financial albatross rather than a wealth building tool.

It is never wise to depend on rent payments to keep the mortgage current. You are almost certain to face periods of time without paying tenants, and you may sometimes receive late payments from renters as well. It is far better to protect your own credit and financial future by ensuring that you do not get trapped into an unaffordable mortgage on investment property. It can take time for a rental home to start generating profits if income is always used to pay off a mortgage.

Anticipate And Prepare For All Expenses Related To The Investment
Whenever you buy real estate as an investment vehicle, it is necessary to think about how much taxes will be and how they will be paid. It may make sense to use a management company that can help make needed repairs and perform rent collection tasks. While this is a savings of time for you, to be sure, it will also come at a cost. It is crucial to carefully weigh the pros and cons and run the numbers to determine what is best.

When setting a rental price for your investment property, always take these types of expenses into consideration and make certain they will be covered in full. It is also smart to build a reserve fund for unexpected repair items. Insurance must also be kept updated and in place if unpleasant surprises and shortfalls are to be avoided. Placing rental payments into the reserve right away is a terrific method of creating a sizable reserve.

The Importance Of Due Diligence
Should you decide to buy land in order to resell it later on, it is crucial to do your research. Deed restrictions, future development plans nearby and other such factors can make a huge difference in what you will be able to sell for in the future. While such elements may end up boosting the value of your property, the opposite can also be true. By performing a good deal of investigation in advance, you can make an informed choice with regard to the quality of a potential investment. Otherwise, the risk involved with a given plot of land may just be too immense to accept.

Baby Steps
Savvy real estate investing newbies routinely launch their careers with the purchase of a home that contains a small apartment within it, or perhaps with a duplex that is great for renters. Doing this provides valuable early experience, though it may not always be desirable to have to live in the same structure as your tenants. It is wise to do the math and make sure that mortgage payments and other expenses can still be met even if there is no tenant present.

Prior to seeking a renter, it is necessary to verify that the space is compliant with all relevant building codes. A management company can certainly handle this task, but again, there is a price for this type of service. Over time, you will start feeling more confident about your abilities as a real estate investor, and you will be able to move into owing multiple properties. The end result will be a reliable stream of income generating investments of which you can be very proud.


Floor Clause Debacle Shows Importance of Mortgage Brokers

Floor Clause Debacle Shows Importance of Mortgage Brokers

The judicial system in Spain has not succeeded in its attempt in dealing with the so-called floor clause cases of which hundreds of thousands have been brought into court.

There have been 54 courts set up, one in each province, which is designed to handle the huge onslaught of cases that are proving to be an overwhelming amount of work. There have been more than 260,000 cases filed. Of those, about 52,000 have reached a formal conclusion. That is just 20 percent of all cases.

There have been many victims who claim to have waited a year before having their case admitted. This issue was not helped by banks who have been challenging each ruling even though they have lost 97 percent of the cases.

Lenders have been creating another bottleneck of appeals cases which are disrupting the system using overly litigious tactics which can be avoided. They are taking up way too much of the public’s resources says the head of the Murcia High Court.

With thousands of families looking for justice, it pays to remember how they got themselves into shady mortgages. Floor clauses had been written in to enforce a minimum interest rate on loans with floating rates. These clauses set a limit on how far they could fall together with the benchmark rate.

This meant that buyers did not get to benefit completely from the historically low interest rates. These clauses were deemed illegal by the high court in Spain in 2013.

Some families have waited 10 years to get their money back or have their case reach the court.

To avoid these situations the answer is easy. Hire a qualified mortgage broker.

The Spanish Mortgage Association ( Asociación Hipotecaria Española, AHE ) is an organisation consisting of banks, savings banks, cooperatives and credit financial institutions who have a strong presence in the mortgage industry. With approximately 80% coverage of the mortgage market, they are very prominent.

Finding an independent and impartial mortgage broker takes time and research but is vital to a trouble free property purchase.

You only have one shot to get the right mortgage. The best thing to do is to hire a mortgage broker. This is a small price to pay for a legal contract and the peace of mind that goes with it.

Some real estate agents might offer to provide these services but it’s usually best advised to find an independent broker not connected in any way that could cause a conflict of interest although some agents are no longer offering these services to win back trust in the sector.


The Ultimate Guide to Los Cristianos

The Ultimate Guide to Los Cristianos

This resort based in Tenerife is among the more energetic, fun-filled and vibrant in Spain, and is filled with exciting attractions and family activities.

There is a host of sights to enjoy on this stunning coastline, which includes a bustling harbour, outstanding shopping opportunities, nearby golf courses, nature reserves and a vibrant nightlife.

If you are planning a holiday to Los Cristianos you may have questions that you would like to ask. This may include the better time to go, things to do and see along with where you should stay. Well, we have the answers to all these questions.

Read over our comprehensive travel guide to give you a bit of inspiration for your trip and start the planning phases of your next holiday to this beautiful Canary Island resort.


When To Travel

Los Cristianos is located on the south-western coast of the Canary Island. The close proximity of this island to the West-Coast of Africa means it takes full advantage of year-round heat and sunshine.

In the summer months the weather is regarded as hot and you can expect to experience highs of about 30°C. If you don’t mind swimming in water that is similar to bath water, then the summertime is the best time for you to visit, with sea temperature averages of around 23°C.

Los Cristianos is also one of the popular destinations in the winter months with temperatures that remain in the 20s°C, which is still pleasant and warm for days at the beach, but not hot enough that you will be searching for constant shade.

This year-round resort means that you can travel in any season of the year, and all attractions such as the nightclubs, restaurants and hotels are open.


Things To Do

If you are interested in seeing all the Los Cristianos coastal sights all you need to do is take a stroll along the seaside promenade. This is a marine walk that stretches from Los Cristianos all the way to Playa De Las Americas. It offers easy-access for dog walkers, wheelchair users, buggies and prams.

You are able to make stops along your way to browse through a variety of seaside shops or stop for something to eat at a café or restaurant.

During the evening, the promenade livens up with the music that spills out from bars and clubs onto the streets, where tourists and locals socialize together while sipping on cocktails.

Los Cristianos was once a small fishing town, and still has its own working harbour, that separates the two beaches of this city.

When visiting the harbour, you will enjoy outstanding views over the water along with mountains from behind you. The harbour in Los Cristianos is also a great start point for pleasure cruises, fishing trips, diving excursions and glass-bottom boat tours. You can also use on of the ferries to visit the neighbouring islands.


Family Days Out

When it comes to family attractions, there are a host of activities that will keep younger children entertained in Los Cristianos. The Monkey Zoo offers a way to get up close to popular primates, where you can feed them fresh and dried fruit on your visit.

The Aguilas Jungle Park offers exciting displays of bird-of-prey, along with wild animals that include meerkats and lions along with other exotic-bird exhibitions.

If you are looking to escape the heat of the Tenerife sun, consider a visit to Aquapark. This is a park that is famous for slides that accommodate all ages, exciting dolphin shows along with a number of big swimming pools. For a unique experience, you can even choose to take a swim with some of the friendly dolphins.


Beach Days

Los Cristianos is very well-known for its outstanding and long sun-kissed coastlines. Beaches in this area are very long which means they rarely feel overcrowded, which means you will always find a spot for your umbrellas and beach towels.

Playa de Las Vistas is a larger beach, with a coast-line built-up from Sahara sands that were brought over. This is a man-made coastline that seems to stretch forever. It also features a pretty fountain that showers real seawater.

The facilities here are outstanding, which includes lifeguards, ice-cream parlours, restaurants, toilets, showers along with rows upon rows of available sunbeds.

The second beach known as Playa de Los Cristianos is situated in the middle of this resort with a stunning promenade just behind it.

This beach also offers great facilities along with its own beach volleyball court. Playa Callao is a rock and sand beach, which is a bit more rugged compared to the neighbouring sands. It is more popular for those who prefer not to be restricted by wearing their swimwear.


Places To Stay

The Paradise Park Hotel is one of the better family resorts in Los Cristianos. The hotel offers 5 pools, along with one adults-only rooftop-terrace. If you are travelling with children you will really enjoy the Kid’s Club that offers services and activities for children between the ages of 4 and 12 and access to the neighbouring water park.

Only a short 10-minute drive-away from this beach along with the world-renowned Siam Park water park you will find Villa Mandi. The resort resembles a Mediterranean Village, with lawns that are neatly clipped, palm trees and low-rise terracotta blocks.

The hotel offers 4 pools, yet you will more than likely make Siam Park your 5th, due to the free-access for all guests that stay at the hotel.

A short 10-minute walk from the Los Cristianos beach, you will find Sol Arona Tenerife which is one of the more classical coastal getaways. The central location makes it easy to walk to the beaches, restaurants or the different nightlife venues.

The hotel offers a spa, gym, buffet restaurant and 2 pools. The activity list is impressive with tennis, mini-golf, boules and water polo.

Top Tips

There is outdoor market every Sunday in town, which is the ideal spot to buy souvenirs.

The influx of different visitors from across the globe has resulted in many international restaurants which includes American, Italian, French along with vegan options.

The Tenerife South Airport is 15-minute drive away.


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