Michael Challiner asked:




As the rental market rapidly soars tenants are being forced to reduce rents or take the risk of losing their tenants. This is due to the amount of homeowners who are now renting out their properties rather than selling them for a cut price.

There was a rush of so called “accidental landlords” last year as decreasing house prices influenced homeowners to delay the sale of their property. This is caused a lot of competition in the rental market and put pressure on rents.

However, corporate demand has decreased as fewer businesses bring new employees into the UK. According to agents, rents have been slashed by approximately 20 percent. In some parts of London this has been as much as 30 percent. Properties have been left empty as tenants move out to find better properties for the same price.

“It has been harder than expected for many accidental landlords,” says the lettings director at Knight Frank, the estate agent. “It depends what area and what price range they are in but tenants are trying to knock 10-30 per cent off asking prices in some cases and are even renegotiating mid-term.”

There is significant activity in the market, according to them; the number of like-for-like lets has also risen on last year. There is still an imbalance between the number of people looking to rent and the number of properties available. Knight Frank. On average, has twice the amount of rental stock it had this time last year.

Savills and Hamptons International, also have a lot of properties for rent, which they say is forcing reductions in rents. “Anyone who has had a vacant property would have experienced a rent reduction in recent months,” says Mrs Gordon, head of lettings at Savills. “We are seeing applicants negotiating heavily to get a property and making multiple offers.”

Tenants who took out a contract just 6 months ago are asking landlords to renegotiate rents. They are using the six month break clause in their contract to see if they can get a better deal. “They might exercise the break and go,” says Mrs Gordon. “In London, people are moving into more central areas because they can get a much better property for the same price.”

Not all areas of the market are experiencing the same problems. Agents say tenants are obtaining discounts only where there is oversupply, and some sectors are in fact still seeing a shortage of stock. Other areas are not as bad as central London, which is down by about 15 percent. The area with the largest drop off in demand is the top end of the market.

Knight Frank says that properties priced at more than 1,000 pounds a week are harder to let. As unemployment rises corporate lettings are also suffering. Accommodation budgets for staff are also been cut by businesses.

She says some large companies may relocate their employees unless the landlord cuts rents by several hundred pounds a week. “People relying heavily on the corporate market have to renegotiate quite substantially.” The biggest fear for landlords is whether they will be able to meet their mortgage repayments, as they may find they are not earning enough to cover their payments.

Amelie Mag asked:




Bangkok is one of the most visited cities in the whole world and more and more people who visit it are willing to buy a property in Bangkok.

Foreigners who are interested in Bangkok real estate investing must be familiar with property laws in Thailand, if they do not want to have an unpleasant surprise. Anyone can buy a unit in a condominium, but foreigners cannot own free land and houses. According to a Thai rule, foreigners can buy only a certain percentage from the total area of the condominium, in a proportion that does not exceed 49% of all the units in the condominium. A local real estate agent can tell you if you fulfill the necessary conditions in order to buy a unit of a condominium or rent a property in Bangkok.

You can make a good idea about the local market if you resort to an experienced local agent, who knows his or her business. Thus, you will not have to worry about any failure of your Bangkok real estate investing, since such an investment will bring you the expected long-term profit. The commercial real estates have exploded these last years and Bangkok real estate investing can turn out to be tricky, if you do not have a well-thought plan. Anyone can rent a property in Bangkok, but the success of the investment does not offer a guarantee as long as a team of experts has not advised you.

Bangkok real estate investing is not only about buying or renting the desired property in Bangkok. Apart from the money that you will spend on renting or buying, there will also be other operating expenses. The maintenance fee of the property you buy or rent faces charging by the month. The owners will decide the amount of money to pay. Furthermore, if you own a property in Bangkok, you will have to pay a property tax that varies according to the estimated value of the property.

Finding a licensed Bangkok property Real Estate Agent is not an easy task, because, just like in other cities, there are always many unauthorized agents who are looking forward to trick you into buying their inadequately constructed properties. Before you buy a property in Bangkok, it is very important to verify that the agency has a license and that they come with good recommendations. Remember that the success of your Bangkok real estate investing lies in his /her hands and you should not shy away from asking for recommendations.

In addition, it is also recommended to consult with a local attorney about possible pitfalls as well as other miscellaneous laws that are applicable to foreigners. For those foreigners wanting to buy a property in Bangkok, it is also pertinent to check out the new areas that are developing quickly. For instance, the train transportations (BTS) is quickly being developed and cause the real estate to increase quite rapidly in areas that were not popular before. Bangkok is a place that is worth investing in, but do not expect any short-term profitable results. In the end, the money you have spent on the property will pay off – you only need to start with a long-term goal.

Bryan Hendersen asked:


While many believe that over-extended first time home buyers played a large role in creating the current economic crisis, the Federal Government nonetheless is trying to woo even more new home buyers with their current stimulus package. Afraid you can’t afford to buy a house? Worried you won’t qualify for a loan? Never fear ? the government will come to your rescue with its ‘First Time Home Buyer Stimulus Package,’ which is being targeted to both first time buyers and those who have not owned a home for at least three years.

Owning your own home remains the American dream. That’s the philosophy behind this program, which includes both pre-owned and newly constructed homes. If successful, it could reduce the current inventory of unsold homes, replenish construction industry coffers and put some unemployed builders back to work. There are three components of the program:

1. Tax credits

2. Down payments funding

3. Lower interest rates

The first stimulus programs were instituted in 2008 at the beginning of the economic downturn. As these programs were found to be insufficient, the government unveiled additional incentives to spur home ownership. The goal was to reinvigorate the real-estate market at a time when people must overcome their fear of spending and of home foreclosure.

A 10% tax credit is available to those who purchase a home between January 1, 2009 and December 31, 2009. Depending on purchase price, this credit may be up to $8000. The credit must be claimed within two years of buying the home. The tax credit might be used to offset the property taxes and to recover some of the downpayment, which is often a barrier to home ownership.

Speaking of down payments, the second incentive introduces the possibility of having to raise a smaller sum. A typical down payment amount is 10% of the sales price — $20,000 on a $200,000 house. If you don’t need to put down so much, the government hopes you’ll spend that savings on home improvements or other investments. They might also offer you a loan with lower points, resulting in lower closing costs or a lower monthly mortgage. This program is restricted to individuals earning up to $75,000, or couples earning up to $150,000.

A final alternative being offered is a tax rebate on the loan’s interest. This is different from a tax credit. Investment property owners are also eligible to take advantage of the tax rebate for expenses that are considered part of the property’s maintenance and therefore an income tax deduction.

The government foresees many positive benefits from the First Time Home Buyer Stimulus programs. Beyond helping people to become homeowners, it is viewed as a way to revitalize the economy, and keep our head up in the eyes of the world.

Roselind Hejl asked:




Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.

Condominium Regime The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.

A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units. Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.

Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.

If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.

The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.

Fee Simple Ownership

In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land. In fee simple, there are several different possibilities with regard to your obligations of ownership:

(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.

(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.

(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.

Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties. Understand your ownership rights and obligations

Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.

If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.

If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.

Heather Seitz asked:




Thinking about investing in commercial real estate? Why not consider buying an apartment building? An apartment building can be an ideal way to invest in the real estate market today. An apartment building in a good location can earn you a high yield on your real estate investment.

Location is the most important aspect when buying an apartment building. Buying an apartment building in a destroyed area is not a good idea as the renters that you will get may not be able to pay the rent on time, if at all. Apartment rentals are one of the easiest ways to invest in commercial real estate but it can also be very risky.

When buying an apartment building, check out the area and make sure that it has amenities that make it a desirable place in which to live. You also need to make sure the apartment building is structurally sound. An inspection of the property by a qualified real estate inspector is essential. If there are any repairs to be done on the property, it is best to know what and how much it will cost prior to purchase.

You also have to decide who is going to make the repairs on the apartment building. Some investors offer a discounted rental rate to someone who is willing to maintain the building. Most of the problems that are encountered by renters are easily solved with a bit of home maintenance knowledge.

To really save money when buying an apartment building, live in one of the units yourself and rent the others out. This way, you can end up paying off the mortgage on the building as well as having a place to live. Shelter is something we all need and there is no better way to invest in commercial real estate than by living in your investment while paying it off, therefore killing two birds with one stone.

Prior to buying an apartment building you should be well aware of the lease laws in the state in which the property is located. Lease laws vary from state to state but some federal laws regarding fair housing pertain to all states. You cannot discriminate against a renter on the basis of gender, race, religion, ethnicity, sexual preference or family situation. There are certain stipulations to renting to families with children in retirement communities, however. Make sure that you understand the lease laws before buying an apartment building.

Another way to get a real bargain when buying an apartment building is to find one that needs repairs. Because the residential real estate market is so slow, many contractors are looking for work and you can get some bargain rates on general contracting work. As long as the apartment building is located in a desirable location, it can be well worth it to make improvements and add to the value of the home.

Buying an apartment building can be a good way to get started in commercial real estate investing. Be sure to study the location of the building, get a good inspection of the property, examine the existing leases, consider maintenance and be well aware of lease laws prior to investing in rental real estate.

Christine OKelly asked:




Landlords know that sometimes things happen that can cause a tenant to break an apartment rental lease. In a perfect world, everyone would finish out their contract before moving on, but many landlords and property management companies realize that sometimes unavoidable events occur. You can do a few simple things to work with your landlord that may help you avoid penalties when breaking your lease.

Let Your Apartment Rental Landlord Know Early

Giving your landlord or property management company plenty of notice will most likely be met with cooperation if you have to break your apartment rental lease. Try not to spring a broken lease on a landlord and instead give them as much notice as possible. This will give them time to try to find a replacement tenant. If you behave professionally, so will your landlord.

A lease is a legally binding contract and you signed it willingly. If your time in your rental apartment has been good, but you’re being transferred out of town, let your landlord know. Tell them you’d be happy to renew if it weren’t for the move. If you remain calm and rational, your landlord is more likely to let you break the lease without penalty. Remember they do not have to do this. The landlord has the legal right to not let your break your lease without penalty. Talk with your company’s human resources department about a possible relocation package. Some include a payment to cover a broken lease fee.

If military service is causing you to break your lease, it should have a military clause that allows you to break it without penalty. If your landlord doesn’t know about a military clause, check with your base or post legal department for help.

Help Find A Replacement Tenant

Helping your landlord find a replacement tenant is a good way to make your landlord happy if you have to break your lease. Recommending your apartment to friends and family is a good start. Even if they’re not looking for a new place to live, they may know someone who is. A good recommendation is a positive thing for both the landlord and new tenant.

Let Your Landlord Show Your Apartment Rental

Letting your landlord or property management company show your apartment rental to prospective tenants will help them find a replacement tenant faster. Be sure to keep your apartment in a neat and tidy condition. It is especially important to keep the apartment clutter-free, the bed made, dishes put away, and the bathrooms clean. It will help your landlord show off the apartment to potential tenants and, although it may be an inconvenience, it could save you hundreds of dollars in penalty fees.

The easier you make breaking an apartment rental lease on your landlord, the more likely they are to let the penalties slide. It is easier to keep everyone happy if you work together to find a new tenant.

Silvester Thompson asked:


With housing prices going up as much as 10 percent per year in some areas, the longer you wait, the farther that perfect house can move out of your reach.

Along with the hike in house prices, interest rates are starting to creep up as well. This is even more of an incentive to buy a house now, rather than later.

How can you get a big house for a small-house price? The following tips will reveal the secrets to getting a great deal on your dream house.

1. Get to know house values. Before you get started, look at the areas in which you want to purchase a house. Monitor the prices of houses in that area until you are fairly comfortable with those values. Your goal is to know the value of homes so well that a great deal will be obvious to you.

2. Make low offers. Start by making offers that are as low as 65 percent to 70 percent of the asking price. Rather than making only one offer at a time, make five or 10 offers each week. Make sure you write “To be deposited only upon acceptance of this offer” on your earnest deposit check.

3. Expect most of your offers to be rejected. You’ll know you are on the right path when your real estate agent complains that your offers are too low.

4. Wait for a great deal. If a seller accepts your offer, or counters with an offer at 80 percent or less of the home’s value, you’ve probably found a great deal. You will be able to live in a bigger house than other buyers who

didn’t take the extra time to find a seller willing to sell for less.

This strategy will test the patience of both you and your real estate agent. You will be tempted to think that no one will ever accept one of your low offers. However, when a good offer finally comes along, the extra space you get to enjoy in your new house will make it all worthwhile.