Wednesday, December 4, 2013

Real Estate Investment Will Teach You How to Be a Better Business Person

This is an investment that everyone and anyone, it seems, is involved with at one time or another. From Fred Mertz to Donald Trump, and everyone in between, real estate appears to have that all-encompassing allure that seems to attract just about anyone. Even someone who may not own a property is always ready to talk about real estate. Real estate is always a favorite water cooler subject, as well as a hot topic for just about any occasion. If you have never owned a real estate investment, you don't necessarily need to know how to buy, fix, or sell, to talk the talk. In hot markets, as well as weak markets, real estate is always a hot topic.

When the market is hot, the conversation is about how much the market has gone up and how much equity one made, or the property that was sold and the profit that was realized. In a declining or very weak market, there is still much real estate chatter, but the conversation is much different. Instead of boasting about the newfound wealth, most people are lamenting the loss in equity, and the difficulty in trying to sell. In a good market, we boast, in a steady market, we coast, and in a bad market, we roast. When the market is good, many want to brag about their investment and tell how to make the same type of terrific deals. When the market is in the proverbial basement, the once proud investor will look for solace in explaining how that once fantastic deal has now turned into a money losing catastrophe.

There are however, investors who do make money in down markets. In fact, when the market is depressed, that is the time to buy and when fortunes are made. There are too many properties for sale, and not enough investors to buy them. In other words, there are too many Fred Mertzs', and not enough Donald Trumps. Some people seem to be born with "investment how to", and many others just buy when the time is right. In an appreciating market just about anybody can make money in real estate. There would probably be many more investors buying now if money was available. Once the economy starts to improve, and mortgages are available, the investors will come out of the woodwork.

Everyone who is reading this probably realizes that. Real estate will come back, but not right away. Even when it comes back slowly, in general, it will still be a good investment. Property investment will still show you how to deal with people, make decisions, and sound real impressive around the water cooler or at any social gathering. As investments go, real estate is the one investment that will always hold a special interest to just about everybody. It is something we all need, whether we are renting or owning. Either way, enjoy the conversation, and anticipate a bright road ahead, way ahead.

Biggest Real Estate Crash in Decades - What to Do With My Investments Now? Part I - There is Hope

For those who purchased investment rental properties before year the 2000, or had the foresight to invest in recession-proof locations like San Francisco or Seattle, it's easy to navigate the current real estate recession. However, it's a lot more complicated for the people whose real estate investments have dropped between 30%-50% in value, and are stuck with an adjustable interest rate loan that might skyrocket at any moment.

You may think bankruptcy or foreclosure is the only options, but there is hope. There are less financially damaging alternatives to bankruptcy that aren't too difficult to pull off. Below you'll find what options you have if you're in this situation, and how to decide which avenue best suits both the current market and your financial and personal needs. These options not only prevent a bankruptcy or foreclosure record but also will likely turn out to be profitable for you when the housing market improves.

Two Options to Consider - Unload or Hold

You can either unload your properties or keep them for the long term. When you unload a money-losing property, the main challenge is to minimize further damage to your financial and credit history. On the other hand, when you hold onto the property, the main challenge is to generate positive cash flow and wait for the market to improve and allow you to make a profit. This article discusses various aspects of consideration to help you make a financially-smart decision and overcome the challenges.

Historically, when any market crashes, it eventually recovers. Conversely, if a market gets too inflated, it will correct itself by losing value. It's a safe bet that the real estate market will regain its value someday. Cyclical market trends are the only norm in this volatile market.

The real estate market has simply over-corrected itself from the peak year of 2006. Depending on location, 2010 real estate values have reversed back to that of the late 1990s, literally erasing not only the 21st century boom, but also any appreciation since the last real estate downturn in 1989.

Yes, prices are bad now, but the market will eventually recover. Therefore, if you can afford it, hanging onto your properties could be a smart move, because it'll give you a chance to make money off of them in the long run.

Think About Long-Term Growth

Instead of asking if we've reached the bottom of real estate market, we like to ask "Will the real estate market value be higher in five years than it is today?"

If you take a long-term view, now is actually an excellent time to invest, rather than to sell. Likewise, it's an awful time to dump your investment properties unless it's a calculated decision based on the principles and criteria recommended later in this article.

Of course the outlook of overall real estate market cannot be the only consideration when you are making choices for your INDIVIDUAL properties. Real estate markets are extremely localized. For example, the Phoenix market is very different from that of New York City.

Stay informed by reading local news, talking to real estate agents, investigating trends, and evaluating data carefully. One caution is that real estate agents tend to be more bullish or bearish depending on what they need to be to earn your business. You will notice the news issued by the National Association of Realtors tends to paint rosy pictures and its economists tend to be much more optimistic than the average economist.

To research the latest local market conditions, read some real estate agents' opinions and data they have provided, visit RealtyTimes. Navigate to their Market Conditions and choose your state and city to read more details.

Consider Combining Several Different Strategies

Remember, if you own multiple properties, you don't have to make the same choices for all of them. For example, it worked great for Real Investor Tips to short sell a few properties, while modifying loans of others. Combining these strategies allows you to pare losses and hold onto future winners.

In addition to considering each individual property's future potential, keep in mind that there might be negative impact on your personal credit and finances after a short sale or deed in lieu or foreclosure. You can always follow the tips in this article to minimize the damages.

Monday, December 2, 2013

Indian Real Estate Market: Bubble or a Bit Trouble?

A fear of bubble comes in the mind of everyone who is looking to buy or invest in real estate now a day. But without looking at facts one should not come up with any conclusion that speculates real estate bubble in India.

Indian real estate industry is growing with a CAGR of more than 30% on the back of robust economic performance of the country. After a little downturn in 2008-09, it has revived rapidly and shown tremendous growth. The market value of under construction project has increased from $70 bn at end-2006 to $102 bn by end-June 2010, which is equal to 8.2 per cent of India's nominal GDP for 2009. Besides the Govt. initiatives- liberalization of foreign direct investment norms in real estate in 2005, introduction of the SEZ Act, and allowing private equity funds into real estate, key factors contributed to this tremendous growth were 'lower price' which has attracted buyers and investors not only from India but NRIs & Foreign funds have also deployed money in to Indian market. In addition to that, aggressively launching of new projects by builders had further improved this positive sentiment which paved the way for rapid growth in market last year.

Now question is whether any Bubble is forming in Indian real estate market? Let's look at the recent housing bubble in USA, Europe and middle-east. Beside economic factors, key contributing factors in those bubbles were rapid rise in price beyond affordability, home ownership mania, belief that real estate is good investment and feel good factor among which rapid price hike is a key cause of any real estate bubble.

Comparing it with Indian scenario, all those factors are working in major cities of India specifically Tier-I cities. Prices has skyrocketed and crossed earlier pick of 2007 in the cities like Delhi, Mumbai, Bangaluru, Chennai, Kolkata, Hyderabad, Gurgoan, Chandigarh & Pune. Even in some cities like Mumbai, Delhi, Gurgoan and Noida prices have gone by 25-30% higher than the pick of the market in 2007. However during economic downturn in 2008-09, prices fell by 20-25% in these cities. Other factor is home ownership mania and belief that real estate is good investment. Need based buyers and investors were attracted by lower prices in the end of 2009 and started pouring money in real estate market. Tier-I cities Mumbai, Delhi-NCR, Bangaluru, Chennai, Pune, Hyderabad, Kolkata has shown maximum investment in real estate projects. Developers have taken the advantage of this improved sentiment and started launching new projects. This has further boosted confidence among those buyers and investors who had missed opportunity to buy or invest earlier which has further increased price unrealistically fast. And at last feel good factor which is also working since last few months. The key factor of any bubble market, whether we are talking about the stock market or the real estate market is known as 'feel good factor', where everyone feels good. For the last one year the Indian real estate market has risen dramatically and if you bought any property, you more than likely made money. This positive return for so many investors fueled the market higher as more people saw this and decided to invest in real estate before they 'missed out'. This feel good factor is at the heart of any bubble and it has happened numerous times in the past including during the stock market crash of 2008, the Japanese real estate bubble of the 1980's, and even Irish property market in 2000. The feel good factor had completely taken over the property market until recently and this can be a key contributing factor for bubble in Indian property market. Even after flow of negative news on real estate market correction and/or bubble, people are still highly positive on real estate growth in India.

Looking at above factors, there is possibility of bubble formation in few cities in India but it can harm buyers and investors only if it bursts. Generally bubble form with artificial internal pressure and can stay for long time if not acted by external force. Similarly, in case of real estate market, bubble can burst if demand and price start falling suddenly and drastically. Few findings of recent research by IKON Marketing Consultants throw more light on this. According to that majority of investors from Delhi, Mumbai, Bangaluru, Chennai, Kolkata, Hyderabad, Gurgoan, Chandigarh & Pune are now not willing to invest at this level of price as not seen any rise recently. Majority of them are about to exit and book profit on their earlier investment. Other factor is demand supply gap. In city like Mumbai were around 6500 apartment with 45 million square feet space is under construction but majority of developers are worried on lack of 100% booking. Same situation is with Delhi and other major towns of India which has demonstrated higher than expected enthusiasm. Though developers giving positive outlook of market while interviewing them but their confidence level is very low which is giving negative signals of falling demand in nearest future. Third important factor is expected outflow of foreign fund. India, as an attractive investment destination a huge fund has been deployed in Indian property market by foreign institutes and NRIs. But now property market in US, Middle east and Europe has been stabilized and started growing gradually which is attracting foreign funds due to lower prices. A huge fund is expected to withdraw from India as foreign investors see greater opportunities in those countries. All these factors may act as external pressure which may lead to bubble burst.

Considering above facts, IKON Marketing Consultants predict that there is a possibilities of real estate bubble in Tier-I cities like Delhi, Mumbai, Bangaluru, Chennai, Kolkata, Hyderabad, Gurgoan, Chandigarh & Pune. However, IKON does not see much trouble in overall market as Tier-II and Tier-III cities are growing gradually and are the backbone of Indian real estate industry. According to IKON's research, Indian real estate industry may see some down turn in 2011. It may start from 1st quarter of 2011 and last up to 3rd quarter of 2012. However it will be not too intense as it was during recession period. It is expected that price may slash by 10-15% during this phase of correction but under certain situation it may last up to end of 2013 with price correction of 30% specifically in Tier-I cities.

By its nature, a bubble is a short-term phenomenon while Indian property market has shown continuous growth, apart from periodic adjustments, in the last few years. One should not forget that there are more than 400 million Indians waiting to hit the middle class group which will require more than 75 lacs housing units by 2013. Whether bubble burst or see a bit trouble in short-term, growth story will remain intact for Indian real estate industry. However affordability is the most important factor when it comes to housing prices and middle class housing is much levels of affordability in most of the major cities in India. People, who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course there is a huge demand for housing but they can only buy what they can afford.

Marketing Real Estate Properties in Jordan Via Electronic Media - What Are the Chances of Success?

Marketers of properties in the Middle Eastern country of Jordan have always relied on traditional marketing techniques. In most cases, sellers and buyers of land, residential, and commercial properties rely on brokers and their agents to facilitate the process. Property owners who have the time and stamina, in an attempt to save on commissions, resort to other means such as placing print ads on local newspapers and real estate specialty magazines, or simply use for-sale-by-owner signs to showcase their properties and attract buyers.

Recently, the ubiquity of computers coupled with the availability of broadband internet access in major metropolitan areas such as the capital Amman, Zarqa, Irbid, and Aqaba is slowly changing the way Jordanians carry out their real estate marketing transactions. New real estate listing and marketing websites servicing the Middle Eastern markets are popping up on the internet at an unprecedented pace. Owners of these websites are trying to walk in the footsteps of highly successful western website operators who have achieved a good level of success serving their local markets. Nowadays, it is possible to find advertisements for all types of properties such as land, apartments, villas, and condominiums on such websites in Jordan.

Email usage by Jordanian is also on the rise. In fact, the growth has been exponential and unprecedented in the last two years. Some brokers and their agents are finding new and exciting marketing opportunities in this new communications medium. It is not uncommon for an average email user to receive two or three email blasts from real estate agents on daily basis.

Marketing real estate through the internet in Jordan is still in its nascency though. With the absence of accurate official research on its efficacy, its hard to tell at this stage if it is worthwhile for the traditional Jordanian advertiser to jump on the e-marketing band wagon. This dearth of information and lack of credible third-party research is forcing some website operators and young e-marketing companies to conduct direct customer surveys on their own in an effort to validate their e-services to the distrustful public.

A recent customer survey conducted by "Nizah for eMarketing," a startup firm specializing in e-marketing services in Amman, Jordan concluded that most customers still preferred the more traditional advertising means such as print advertising over placing property ads on websites. Additionally, according to the survey, some were suspicious of the effectiveness of mass email campaigns as well. However, the majority of the people surveyed expected the situation to change in the near future as the cost of connecting to broadband internet becomes within the reach of most middle-class Jordaninas.

So, is there hope for e-marketing to enjoy any level of success in Jordan any time soon? Well, Jordanian have in the past welcomed and embraced technology as an enabler in all facets of their daily lives; it is just a matter of time before e-marketing garners enough trust and gains the required credibility to take its rightful place alongside other more traditional marketing media.

Sunday, December 1, 2013

Real Estate Internet Lead - Generating Leads Via Online Marketing

Real estate internet lead generating strategies are some of the many marketing initiatives employed by present day real estate agents and firms. The internet has benefited many businesses by helping them create a bigger presence through greater exposure to a wider variety of prospects.

No longer are agents focusing on just one market and lead stream - and rightly so. A single source of leads can be detrimental to your financial health, because you could find yourself up the creek without a paddle. Consequently, agents today are focusing on several niche markets simultaneously and are using the Internet to amplify their efforts. But why implement real estate internet lead campaigns? What gives them an edge over other marketing strategies? There are many advantages, but number one benefit is cost-effectiveness.

Ever wonder why some businesses close after a few years of presence? It's because of funds, funds which can become scarce even if the business is doing great. It happens for example when expenses exceed, or outperforms, income.

Spending more in expenses than income generated will quickly kill any business. But with real estate internet marketing campaigns you can find many ways to market and advertise your website -many of which are free to low cost.

You don't need thousands of bucks just to get noticed for a short time and ignored the rest. You can start with a small budget as you build up your business and keep it relatively the same as it grows.

How to Generate Free Real Estate Internet Leads

Free Classified Ads. When you calculate the possible expenses for marketing your real estate website you should consider free options that are available all over the internet. The first place to look is for free ads sites.

Free classified ads sites offer exposure and internet presence offline techniques can't duplicate. You can run a free ad for up to 3-4 months on some sites and generate a constant, steady stream of leads.

One location to place your real estate ad is in the "Homes for Sale" section. Start with this section and target owners trying to sell their homes as well as buyers looking to purchase homes. If you come across a seller who appears to be advertising a lot properties contact them to see if they're interested in listing them with you. You'll never know unless you ask.

Search Engine Optimization. For the greatest exposure on the World Wide Web you should focus on search engine optimization, also known as SEO. This form of online real estate marketing has proven to be the best ROI for online marketing strategies.

So, if you want to have a successful real estate lead generating web site you should learn about SEO first.

But the short of it is this. Creating persuasive, keyword rich content is the way to go, as keyword-rich real estate articles and reports will drive traffic to your site, thereby generating leads and income generating opportunities. Pre-written content (real estate articles and reports) is also an effective approach.

When doing SEO work you should maintain a page for keywords that reflect your site's content and offers. While it takes persistence and patience to have an effective web site you'll be very pleased with the fruits of your labor.

Summarily, successful real estate internet lead generation doesn't have to be prohibitively expensive. It can cost little to nothing to get started - and little more than that to maintain.