Tips In Investing In Real Estate

Real estate is a popular investment. There are many modifications in the monetary system having puffed-up risk or lesser returns, the investment marketplace go on with the plan imaginative and good-looking investment approaches. These developments make it important for real estate licenses to have an elementary and up-to-date knowledge of real estate investment. Of course, this does not mean that licenses should act as investment counselors. For all he time they should refer investors to knowledgeable tax accountants, attorneys, or investment professionals. These are the professionals who can give expert advice on an investor’s specific needs.

Consider All the Three Factors Before Investing in Real Estate

The three factors of investing in real estate are area, perception and economics. The key to making the best investment in real estate, and specifically in cooperatives, and townhouses, is to consider all the three factors. Investing in real estate correspond to a certain commitments on the part of the purchaser. Investment in real estate made solely upon the location of the property will not yield those results. Before making an investment, it is essential to include the three considerations

o Consider on the whole area.

o Consider awareness of the area.

o Consider the financial factors.

Merits of Real Estate Investment:

Real estate values have varied extensively in various areas of the country. Yet many real estate investments have shown above average rates of return, generally greater than the prevailing interest rates charged by mortgage lenders. In assumption, this means the investor can utilize the influence of rented money to invest a real estate purchase and feel comparatively sure that, if held long enough, the asset will yield more money than it cost to finance the purchase.

Real estate offers investors greater control over their investments than do other options such as stocks etc. Real estate investors also are given assured tax advantages.

Demerits of Real Estate Investment:

Liquidity refers to how quickly an asset may be converted into cash. For instance, an investor in listed stocks has only a call a stockbroker when funds are needed. The stockbroker sells the stock, and the investor receives the cash. In contract, a real estate investor may have to sell the property at a substantially lower price than desired to ensure a quick sale. Of course, a real estate investor may be able to raise a limited amount of cash by refinancing the property.

Huge amounts are generally necessary to invest in real estate. It is not easy to invest in real estate without professional guidance. Investment decisions must be based on careful studies of all the facts, reinforced by a thorough knowledge of real estate and the manner in which it is affected by the marketplace.

Real estate has need of dynamic administration. A real estate investor can rarely sit idle by and watch his or her money grow. Administration assessments must be made. The investor may want to manage the property personally. On the other hand, it may be preferable to hire a professional property manager. Physical improvements accomplished by the investor personally may be required to make the asset profitable. Many good investments fail because of poor management.

Finally, it involves a high degree of risk. The opportunity forever survives that an investor’s property will diminish in rate during the time it is held or that it will not make enough income to make it advantageous.

Luxury Real Estate Marketing: Is Customer Service a Luxury?

“The greatest danger for a luxury firm is to lose its status as a differentiated, premium brand, but wealthy consumer perceptions suggest that luxury overall may be in danger of losing its cachet,” said Milton Pedraza, CEO of the Luxury Institute. “This calls for a renewal of efforts to be unique and exclusive and to execute well on customer service.

The most frequently cited qualities that define luxury-superior quality (76%), craftsmanship (65%), and customer service (57%) – are the areas where wealthy consumers are finding the greatest dissatisfaction. More than half (56%) say that craftsmanship of luxury products is on the wane; 51% say that quality is decreasing; 50% notice a slippage in customer service quality and 48% say that luxury products are losing their design value.”

How does this apply to luxury real estate marketing? Real estate as a profession is a service business, real estate agents and brokers are service professionals. As we interview agents across the country for our series 50 Top Luxury Markets in the USA, we find that those who respond immediately to our queries are thriving in their marketplaces and those who want to eclipse the market leaders. They are easy to access, willing to share their insights, passionate about their marketplace, return calls and emails promptly and are a delight to talk to. One of the top market leaders recently interviewed said that you have to be nice to everybody regardless who they are or what their status in life. He returns everyone’s calls personally. As a result his client lists grows and referrals are plentiful.

Many of the agents we interviewed who are market leaders did not have websites, do not engage in social media, and do not know or care what SEO means or being #1 on Google. They are differentiating themselves on service, manners and excellent communication skills. They knock on doors; they meet people day in and day out. They are relationship oriented. They network face to face. They practice the fundamentals of business. They water plants for their sellers when they are out town. They send handwritten notes, birthday cards, and take their clients out to lunch. Tech is not the priority focus in their success equation and in many cases has been relegated to the back burner.

Luxury by definition implies rarity and exclusivity. Given the results from the Luxury Institute, it is evident that customer service is a key indicator in choosing a brand/service professional. People will remember you for your luxurious service. In our practice as branding and marketing strategists, we feel that customer service should take priority, and technology should facilitate customer service.

An International Marketplace – Is the Triangle Real Estate Community Ready?

With each passing year the composition of companies and the business they transact in Research Triangle Park becomes increasingly global. This globalization brings a continual influx of people from nations around the world to the area not only to work but to live and to raise families. With this rapid growth of international cultures in the area, suddenly there are people with seemingly endless investment capital from many different countries. Not only are they buying homes in which to live, but they are also seeking real estate opportunities for investment purposes. Are Triangle REALTORS knowledgeable enough in international real estate to fully and competently assist these investors? Are our agents aware of the differences in U.S. tax laws and IRS statutes when applied to foreign non-residents and their ownership of U.S. real estate? A word of caution is in order for both the international client and the professional REALTOR. International real estate is a very different and complex business with potential financial pitfalls when practiced by those unfamiliar with the laws that affect these purchases.

RTP has been a catalyst for international growth to North Carolina for many years. There are nearly 100 companies in the Triangle which have international corporate headquarters or offices located on foreign soil. It is truly a World Trade Zone. Raleigh was recognized recently as “one of the top ten most international cities” in the U.S. with over 87 foreign languages being spoken in the area. In addition to the Triangle’s draw, the nine-county area that comprises the bulk of the local real estate marketplace contains one of the fastest growing Hispanic populations in the country. This blending of people and cultures creates a common ground as resources are exchanged and opportunities are created for local industries not the least of which is the real estate industry. With few exceptions, every REALTOR in the area has either sold property to a foreign client or had a property listing that was sold by another REALTOR to a foreign client. The international growth and diversity of cultures are a large part of the mix, along with educational resources, economic health, cost of living, and moderate climate that continually keep the Triangle as one of the nation’s “Top Ten Places to Live.”

One of the many responsibilities of a REALTOR as a professional is to be informed. Their job is one of sharing knowledge and information with consumers and the general public. They must be authorities on schools, churches, malls, day care, assisted living, new construction, old construction, mold, mildew, radon, asbestos, well water, sewer systems, transportation issues, and a plethora of other disclosure items. Why would it not hold true that a REALTOR should be an authority on an international real estate transaction and the nuances of U.S. tax laws when applied to foreign clients? To enjoy the financial benefits and rewards of the local international market, REALTORS must educate themselves in this arena because it is becoming a large and viable segment of the Triangle market. Fortunately for the local real estate community many resources are available through both NAR and the Raleigh Regional Association of Realtors.

More than eight years ago the Board of Directors of the RRAR with insight and progressive thinking created an ad hoc Committee to explore the creation of an International Council of REALTORS. Since then, that Council has come into being and has grown to over 45 active members. The Triangle International Council of Realtors or TICOR serves as a resource for not only REALTORS but the public as well, bringing together the cultures of the Triangle by offering educational opportunities through printed materials, seminars and classes. They strive not only to educate themselves but also to include others who share their interest. Their varied activities include participation in Raleigh’s International Festival, other cultural festivals, and bimonthly luncheons hosting presentations by international attorneys, mortgage lenders, State Government representatives and various Chambers of Commerce.

With NAR approval, the TICOR group has hosted CIPS classes on four different occasions with participants from as far away as Northern Virginia and the state of Washington. Another CIPS course is scheduled for this October and is being sponsored by TICOR at the RRAR Board office. CIPS is a designation from NAR which means Certified International Property Specialist. It is achieved through class work and testing in five different courses of materials and subjects related to finance, international real estate, globalization, and five subjective regions of the world. Due to the efforts of the RRAR Triangle International Council of REALTORS there are more CIPS designees locally than in any other board in the state of North Carolina.

REALTORS in Research Triangle Park are most fortunate to live and work in such an exciting and lucrative marketplace. To have such nationally high rankings as one of the “Top Ten Cities” in so many categories and the recognition as such an international center of activity is a privilege. With privilege comes responsibility. REALTORS of the Triangle community must not only recognize the need to be informed and educated regarding the intricacies of the international market and it’s clients, but act on that need by using available resources to gain the necessary education to perform professionally.

For information about the Triangle International Council of REALTORS we welcome you to visit our website located at www.triangleinternationalcouncil.com or contact RRAR, the Raleigh Regional Association of Realtors at 919-654-5400.