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.

                                                                               

The issue of rent payments also reminds me of rent defaults. Further, these involve things like a court’s eviction order that normally comes along with anxiety and great discomfort for the family to endure.

Nevertheless, other benefits available include rent income and capital gains. Rent income comes when a family rents out some extra space to tenants. Even large corporations find solace in this activity during difficult economic moments. Capital gains is realized by selling the property during times when there are profitable rises in prices although some investor-occupiers would need a replacement.

The aspect of security in real terms is also important to consider. This means that the value of property appreciates with increases in inflation that takes place over time. Ivana again says, “ I always felt very secure and very safe with real estate. Real estate always appreciate.”

Property has many financial advantages that are indeed worthy to take a lot of time talking about but other important things are decisiveness and action. Why is this important ? It is because many enlightened individuals sometimes get good opportunities to invest but due to lethargy and the syndrome called indecision the door closes before they do anything. Its helpful to remember that the kind of attitude that people have towards what they know or possess is what makes the difference in life.

What we are therefore saying is if you do harbor the great dream and have made the choice, then the third step is action. That is determine what kind of property you can afford and go after it ! There are high, medium and low density properties. These differ in prices because of things like concentration of certain amenities in an area, proximity to the CBD, public perception amongst other factors. An early appreciation of these acquired through professional consultations is critical in inspiring your plans to buy real estate with a realistic sense of direction. The fourth action step is to determine the required property by viewing it, checking authenticity of legal title and negotiating the price. You will also need to ascertain the open market value of the property because this is the basis for price negotiations. Open market valuation is realized by comparing the subject property to similar property that would have been sold. Good negotiating skills are also critical in that seasoned negotiators can effectively deploy tactics good

enough to force the other party into making costly concessions. The assistance of a real estate expert is usually vital in many of these instances.

The final step is the transaction phase. The law says, before transfer of ownership, the money belongs to the buyer and the property to the seller. A trusted third party is therefore needed to keep in trust the purchasing money while ownership is transferred from the seller. Unfortunately, some naïve buyers pay directly to sellers before transfer of ownership and expose themselves to fraud. Its worthwhile to engage an estate agent but if you want to do it yourself then you should be really aware of what you are doing . Real estate involves many things that you may not readily know. Be careful ! It’s a desire of a lifetime and must be treated as such.