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Thursday, 6 December 2012

GOLD AND REAL ESTATE COMPARED ! READ ON AND SEE THE BETTER INVESTMENT !

Rarity, durability and scarcity are some factors that have made gold and real estate the most sought-after forms of investments in the world. As a result gold has been used by many governments as a type of legal tender or money. Real estate has also been used by many to lock up capital for a life time. But which of the two is a better investment ? In this article I compare the merits and demerits of gold and real estate so join me in this exploration and discover where you can put your hard earned cash.
 RARITY / SCARCITY
Gold is a scarce commodity, it can not be created but it is extracted from the ground. Such scarcity enables it to return its value. Real estate also has the same quality in that the supply of land is finite but the human population is always increasing. As a result the demand for land is always rising   above supply a situation which means that the value of land will in turn continue to increase. Hence the saying is sure that says " buy land they have stopped making it."

Thursday, 28 June 2012

HOW TO SELL PROPERTY IN A MONEYLESS MARKET?

How do you sell a property in a moneyless or illiquid market ? This is the million dollar question in the minds of those who want cash for their investments. But how can you possibly do it? In the past five years of my real estate career I have discovered an answer and that answer is the  needs-focused marketing strategy. This strategy works because the liquidity problem creats serious competition as market players wrestle for the little cash available, so in order to survive this struggle one should be as competitive as possible through sharpening the needs-focused strategy. I will define this strategy later but for now I shall start with simple but important basics you should know first.

 Simple  Basics  
These are basic activities a seller must go through in order to make selling possible. These are common sense issues you may also think about even without professional advice. But you will be surprised to know about how many sales deals that fail  to go through only because of sellers failing to do the simple basics hence I have to begin with these.

Wednesday, 9 May 2012

YOUR REAL ESTATE DREAM ! HOW TO BRIDGE THE GREAT DIVIDE?

You harbour a dream of owning a property or  of adding  two or more to those you already have. In order for such a dream to see the light of day as opposed to having it remain as just  a  dream forever, you need to have a clear picture of market realities and other fundamentals at play.             

LOCATION. First  and foremost you should know that in real estate the effects of supply and demand vary with location. It is therefore, misleading  to argue that a stand in ZIMRE should get a higher price because the same stand in Mainway Meadows (another middle density area) is getting such prices.  ZIMRE and Mainway Meadows may be equally good in terms of land development elements like quality roads and sanitary systems  but in terms of open market value Mainway Meadows beats ZIMRE because its closer to the CBD and established social amenities.

Thursday, 16 February 2012

REAL ESTATE INVESTING WITH SMALL SAVINGS - WHAT THE DOCTOR HAS PRESCRIBED !

"Local Investors' Dilemma" screamed the headlines of the NewsDay's business section on Tuesday, January 31. This story by Victoria Mtomba reported how popular investments like the stock and money markets are failling to give meaningful returns for small investors in Zimbabwe. On one hand the stock market is haunted by economy-wide liquidity constraints and indigenisation worries that are believed to cause the erosion of value as shares underperform. On the other the investment institutions are demanding a minimum investment requirement of US$10  000.00 which is too much for small investors . So how can these investors invest? What can be done about this ?

Wednesday, 25 January 2012

Making Money From Real Estate Investing With Small Savings


gatherlittlebylittle.com
Acquiring good investments is a great desire in people who save money. Unfortunately many Zimbabweans are unable to invest in these because of funds that are below the minimum required. Its therefore a pity that many holders of small savings end up losing capital as they purchase items that are more of consumables than assets.

Real estate is a genuinely great area for investing into which people the world over put surplus cash and then lock up capital for a lifetime. Small players should therefore take advantage of it. It is however unfortunate that these days many small savings holders are buying cheap motor vehicles of Asian origin. Despite the fact that these immediately begin to depreciate the moment they leave the showroom, their prices are falling also because they have flooded the market. But real estate on its side is in a situation made of many positive factors. Official records that state that there is a backlog of at least one million housing units bear testimony to this inference. Real estate can bring in rental income of about ten percent per annum. It is also true that the stars of this game like Robert Kiyosaki and Mukesh Ambami are making more than ten percent in few months through property development.  

Sunday, 15 January 2012

The Art Of Creating Value

Image from theappraisercoach.com
We all know about valuers, valuations and value itself. Value is what a property is worth in the open market. Most however, do not know how this value is created. Indeed, if we are to discover a way of creating property value then for sellers this will be an enactment of a humorous story in which an academically challenged pupil found a mathematics answer book.

How is property value created? What is the art of creating value? This is a way of creating selling points at the property and the location of a property and being able to skillfully sell these in the market. Through the efforts of a capable negotiator the selling points should be made to appeal to the prospective buyers’ five senses so that they have favourable perception of the property. Sprucing up the image of a property should target these five senses because they are the avenues through which information is gathered and this information is used to make important decisions.


ESTATE AGENT ! FOR WHAT ?

One of the most critical decisions you can ever make in life is to buy or sell immovable property. For buyers the usual motivator is the basic physiological need for shelter. There are many other motivators but whatever they are the underlying factor is when undertaking real estate deals you need a property broker who will not short-change you and give you a regrettable deal.

Some people may never want to hear anything about estate agents because they have been victimized or probably know of a close friend who was victimized by purported agents. This fear though justifiable can however overshadow the positive role that is played by professional brokers. There is also a risk that emanates from venturing without guidance into an area that have many technicalities. When many pitfalls in the form of technicalities lie along the way, getting expert help can show the real meaning of saving money.

An Object Of Desire



REAL ESTATE being a vehicle that elevated moguls like Donald and Ivana Trump is probably one of the top investments you might have always desired. About real estate Ivana herself once said, “I have made a tremendous amount of money on real estate rather than go to Wall Street and get 2.8%. Forget about it.”To Trump and indeed many other people real estate is a befitting reward for their insatiable appetite for success and a durable souvenir after a lifetime of tireless hard work.

Real estate answers your physiological as well as your social and self esteem needs. For example when the first house is bought a lot of things begin to happen for the family. The parents will have this huge feeling of achievement accompanied by a great relief from paying rent. The little ones will have more space within which to perform and cause a few problems. In fact the family is free and happy.