Renovating For A Quick Sale Luxury Condotels Planned In Cebu Philippines Home Finance 20 Questions For Your Lender Must Known Facts About Tax Liens More Return On Equity For Your Investment Property Dollar
One of the most popular things to do to increase your home’s value prior to selling, is to renovate and spiff up the home and property in order to catch the eye of prospective buyers. Its a time consuming process, so its a process that should be planned carefully from the get-go. The question remains, what renovations should you undertake in order to accomplish this goal? Two things that are always good ideas are kitchens and bathrooms.
Kitchens are the most communal rooms in any home. They are the gathering place of the family and a meeting point for friends and neighbors. As one of the most high-traffic rooms, they are also one of the rooms that receives the most wear and tear. There is a simple truth, new kitchens can sell homes. Buyers appreciate new appliances and countertops, they are highly attractive and can also raise the value of a home by thousands. Floors can also drastically change the look of a kitchen. If the floors are worn old linoleum, try replacing them with new tile or laminate, the worth of the change will be evident when the house shows.
Bathrooms are an area that can quickly fall into a state of disrepair. This is largely due to the amount of moisture that is in the air on a constant basis. Any wood elements of a bathroom will usually deteriorate faster than other areas of the home. Also, custom bathrooms are becoming highly popular selling points for many homes. There is a real move towards creating artistic bathrooms, whether that be regressing to an older, more classical style with clawfoot tubs and pedestal sinks or; a more modern feel with clean lines and utilitarian fixtures. Being that aside from the kitchen this room is the room with the larger fixtures and appliances, it is a natural choice for renovation.
Beth Collingz, PLC International Marketing Director, lead marketing partners for Lancaster Brand of Condotels in the Philippines, said the company’s latest sale of condotel units drew not only overseas Filipinos but significant numbers of international buyers from Europe and Australia. Units in Lancaster Suites Manila are sold out whilst their latest project, Lancaster The Atrium at Shaw Boulevard, Metro Manila is 75% booked and range from studios to three-bedroom penthouse suites with full kitchens. We now have demand from our clients for new, luxury high end condotel development in Cebu Collingz said.
Owners of Lancaster condotel units can arrange to stay in their units and they share 60% of any rental income. The Lancaster Atrium together with the soon completed and upcoming operations of Lancaster Suites Manila, one of the hottest real estate investments in the Philippines, will be the hub for Lancaster condotels in the Philippines. The 42-story Lancaster Suites Manila, scheduled for operations this year, features studio, one-bedroom and two-bedroom condotel units, as well as penthouse suites. The units will be available for daily, weekly or monthly rental, Collingz said.
Collingz said a major condo hotel project is being considered by the Company with several UK Investment Trusts and local investors in Cebu, Philippines. “We’ve got so many clients requesting Luxury Condotel Suites in Cebu willing to advance payments for high end luxury condotels,” she said. “It’s a whole new era of Overseas Investments coming up — it’s not something that we’ve typically seen in the past and no one in the Philippines fully caters to this high end luxury lifestyle market. (These Investors) are all characteristically looking for a five star hotel resort, with all the features of a hotel that can be used for vacations and then rent out the units when not in use
The new and exciting luxury five-star properties or high end developments planned in Cebu Philippines, that will be sold by invitation only and will start in the $150,000 to $200,000 range for Deluxe 500sqft Studios, can go all the way up to $600,000 for 2 bedroom Penthouse suites and $800,000 for a Grand Penthouse. Of course, International gateways from Europe, South East Asian and the United States to Cebu-Mactan International Airport is within 15 minutes and, all units have sea views, beach toys and other lifestyle amenities such as spa and fine dining restaurants and will come fully fitted, furnished and finished to the highest European standards with fully fitted kitchens, fitted bedroom suites and every unit will be sold including all appliances, split type central unit air-conditioning, plasma TVs’ and state of the art communication and condotel management systems.
Units will be significantly larger in size than a typical hotel room yet still a much better value for money investment option than paying $800,000 for a studio suite in maybe Dubai or Panama or a cool million dollars for a condo in Chicago.
The planned high end Lancaster Mactan Resort Condotels will be near the new Cebu Convention Center and Cebu International Airport which is key, to good year-round occupancy numbers, she said. The square footage can range from 700 square feet to 1,800 square feet for one and two bedroom suites or more than 3,000 square feet split level penthouse suite.
Why can’t we build, and sell, a – Trump or Ritz Carlton Quality Condotel – in the Philippines and get the same buyers into the Philippines that flock to invest in lifestyle developments around the world enthuses Collingz
Warning! Home finance has blossomed into an incredibly diverse and complicated industry. This is good and bad. There are at least a hundred ways to borrow the money for your next home now. There are also dozens of ways for lenders to take advantage of you, from hidden charges to prepayment penalties and more.
Let your lender explain all the various home loans and home finance options available. However, when you finally decide on a product you like, ask as many of the following as are relevant to your loan. These are the questions that will protect you.
Home Finance – Questions For The Lender
– What is the interest rate?
– What is the APR (annual percentage rate; includes fees, points and mortgage insurance)?
– What is the initial rate (if it is an ARM – adjustable rate mortgage)?
– What is the highest the rate can go to next year (ARM)?
– What are the annual and lifetime caps on the interest rate and payment (ARM)?
– How often is the rate or payment adjusted, and when (ARM)?
– What index is the rate based on (ARM)?
– What margin is added to the index (ARM – it might be the index plus 3%, for example)?
– Is credit life insurance required (this pays off the loan if you die)?
– How much would the payment be without it?
– Can any of the fees or costs be waived?
– Is there a prepayment penalty?
– How much is the prepayment penalty?
– For how long is the penalty in force?
– Are extra principal payments allowed?
– Is an interest rate lock-in available? (guarantees interest rate for a time)
– Can I have the lock-in in writing?
– Is the rate locked in at time of application or time of approval?
– If rates drop, can I get a lower rate locked-in?
– What inspections and/or surveys are required?
– Is a title search and/or title insurance required, and what is the cost?
– Can I get an estimate of prepaid amounts that I’ll have to pay at closing?
– Are there “points,” and what will these cost (discount points to reduce interest rate)?
– What state taxes, local taxes, stamp taxes and transfer taxes will I have to pay?
– Will a flood determination be required (to see if the home needs flood insurance)?
– What other costs will there be?
– Is there anything else I should know?
Lenders may not like getting two dozen questions thrown at them, but you have a right to ask before you agree to a loan. Did you know that a 1% higher interest rate on a $150,000 loan can cost you an extra $30,000 over the years? Home finance can be as important as a good price when it comes to saving money on your home.
A tax lien is a legal claim filed in court by a government agency against a person or business owing taxes. Tax liens normally attach to money or property to pay the taxes. A list of tax liens properties on which the taxes has not been paid are kept at the county courthouse along with the proper and complete documentation to avoid any legal problems afterward.
Every year properties are taxed for their value and every year plenty of people fail to pay their taxes on time, incurring taxes and plenty on themselves either due to the financial issue or they just misplaced the tax bills. If you are late to pay your dues then the government seeks investors to balance their budget. Tax Liens can be filed for income taxes, unemployment taxes, sales taxes, real estate excise taxes, Social Security or disability taxes. Once the tax lien is paid, papers are filed with the courts, affirming the discharge of the property.
Many investors invest their assets in the hope that they will be getting huge profit through it but in spite there lies some awful fact which must be known especially (if you are a investor) in order to avoid any complication, one disaster discussion of investment can wipe out your whole capital and your enthusiasm from all this kind of investment.
The first step should be of building a profitable portfolio of tax liens to your self only to decide the basic purpose of your tax lien investment. Developing a portfolio will surely answer your most critical question like why do I want to invest in tax liens in the first place? Also your reason for investing will determine what type of investment will be best for you.
With the passage of time the tax lien auctions business got huge popularity, most probably because of the abrupt turning of the real estate market and worst jumping down of the stock market which has remained unstable for some time thus compel investor to see some other ways through which they can get a healthy positive outcome with huge benefit. Although profit in tax liens is slow but still it is a hidden secret to the investors. Investing in tax liens assures that your capital will go towards something that is profitable and with a set time period where you can anticipate realizing your profit. Only you have to learn the fundamental principals which are golden and yet very essential to acquire hefty profit. Also try to get more and more knowledge to strengthen your foundation in tax lien business, which could be done through the acquaintance with the property laws, ordinance and so on.
Few would deny that real estate is a solid investment. It provides an attractive combination of stability, reliable cash flow, preservation of principal and capital appreciation. However, many investment property owners nearing retirement find themselves in a quandary. They are equity rich, but cash poor, with increases in the value of their property far outpacing income growth. They also are often tied down by the day-to-day issues of property management and, particularly in cities like San Francisco, California, shackled to the constraints of rent (and eviction) control. In fact, San Francisco is home to some of the lowest cash return on equity in the state’s real estate marketplace, which is somewhat counter-intuitive given California’s ever-booming property market.
The obvious answer is to sell the property and unleash the dormant equity, but that can be problematic. These investors face the reality of prohibitive capital gains taxes and recaptured depreciation, as well as the task of identifying an alternate investment venue; or locating, acquiring and financing suitable replacement property in the time period allowed, taking advantage of tax deferral under IRS code section 1031.
An ideal solution for many investment property owners may be to reinvest the proceeds from the sale of their property and utilize a subsequent 1031 exchange into a tenancy-in-common (TIC) ownership type, also known as co-ownership of real estate (CORE) interest in a suitable replacement property.
1031 exchanges, also known as Starker exchanges or tax-deferred exchanges, permit owners to sell investment property and defer tax payments by reinvesting the proceeds into another investment property (or investment properties). In order to completely defer the payment of tax, among other things, the replacement property must be of equal or greater value and all the equity from the sold property must be reinvested in the new property. The marriage of 1031 exchange and TIC/CORE allows investors not only to defer their capital gains taxes but also to upgrade their investment real estate.
TIC/CORE is a way of sharing ownership of property among two or more persons whereby each tenant holds an undivided interest in the property. Tenants-in-common may own interests of differing sizes. TIC/CORE investors are on the title and considered separate owners of the real estate. They share pro rata in the income, tax benefits and appreciation of the property. Their TIC/CORE interest can be purchased, sold, gifted, bequeathed by will or inherited; and it is subject to property taxes, gift tax, and estate and inheritance taxes in the same manner as any property held in sole ownership. With a TIC/CORE property, each of up to thirty-five investors have the opportunity to own an undivided fractional ownership interest in an investment-grade property, such as an office building, shopping mall, apartment complex or industrial property, costing anywhere from $10 million to $150-plus million.
The benefits of investing in TIC/CORE properties are substantial. Such properties employ professional asset and property management, relieving the investor of day-to-day tenant headaches. More important, investors often receive greater cash flow and overall returns than they had in their previous sole ownership property. Typically, many people receive between 2-3 percent of their equity in their property in rental income. By selling this property and placing the equity into a larger investment-grade property, they can potentially experience annualized cash flow from 6-8 percent, paid monthly, and 12-16 percent overall return on their investment. Also compelling is that TIC/CORE exchange investors can diversify among several property types, and geographic locations through fractionalized ownership, while still enjoying 1031 exchange benefits on each amount. Thus, investors can potentially reduce risk in their overall real estate portfolio.
Investors seeking to exchange for a TIC/CORE property are best advised to work with a financial advisor experienced in 1031 exchanges. Such advisors work closely with top real estate providers, who give the investor access to the best properties available. In addition, many TIC/CORE opportunities have pre-arranged, non-recourse financing in place, which is perfect for investors working within the 1031 exchange time frame. Numerous hours of upfront investigation, evaluation, due diligence and life cycle planning transpires before a property is offered to an investor group. Investors faced with only a 45-day window to identify a suitable replacement property to complete a 1031 exchange can select a suitable project with confidence.
Given the tax deferral, institutional-grade quality of the property, professional property management and pre-arranged, non-recourse financing aspects, a 1031 exchange replacement property structured as tenancy-in-common ownership can be a very wise and profitable solution. It allows the investor to maintain everything they like about real estate (monthly income, preservation of principal, capital appreciation, etc.), while eliminating most of the hassles of property ownership.
(c) 2005, 1031 Exchange Options. Reprint rights granted so long as the article and by-line are reprinted intact and all links made live. This article is neither an offer to sell nor an offer to buy real estate or securities. There are material risks associated with the ownership of real estate. You must be an accredited investor. Securities offered through Sigma Financial Corporation, Member NASD/SIPC..
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