There are basically two types of property investment. You can buy a property or invest in shares in a real estate invesment trust (REIT). This article discusses the benefits of each in more detail.

Realestate: Types of Investment Properties

Investing in realestate can be profitable and rewarding. Before diving in to the investment game, it is important to become educated about the various types of properties and risks associated with each. Additionally, investors should develop a strategic plan prior to purchasing their first property.

Two primary realestate investment options exist. The first involves purchasing properties outright, while the second involves purchasing shares of real estate investment trusts (REIT). This article focuses on buying real estate outright and summarizes the various types of properties and how to earn profits from each.

With the exception of REIT shares, all realestate falls into the category of either residential or commercial properties. Residential realty includes single family dwellings, individual condo units, mobile and manufactured houses.

Commercial properties include apartments and condominium buildings, retail outlets, shopping malls, restaurants, and office complexes. Vacant land can fall into either category based on local zoning laws for use of the land.

Vacant land can be an exceptionally lucrative realestate investment. Raw land can be used for erecting commercial office buildings, shopping malls, or developing residential communities, as well as ranching and farming purposes. Vacant land located in rapid-growth areas can quickly increase in value.

Residential realestate is the most popular type of investment property. The majority of real estate investors begin by purchasing a single dwelling home to be used as rental property or for house flipping.

Rental realestate can offer a decent return on investment, but it can take ten years or longer to turn a profit. In the interim, investors are stuck with the headaches of being a landlord or the expense of hiring a property management group to oversee the property.

One option to overcoming these duties or expenses is to offer the realestate under a lease-to-own contract. Buyers provide a down payment and reside in the home as a tenant. A percentage of the rental income is contributed toward the purchase of the home. Lease-to-own contracts typically last two or three years; allowing the buyer time to develop sufficient credit to obtain a conventional home mortgage loan.

Lease-to-own contracts can allow investors to quickly generate profit from their realestate investment. Legal contracts should be drafted by a real estate attorney. Investors must submit specific documents to the IRS when engaging in rent-to-own properties.

Another well-liked realestate investment is flipping houses. House flipping requires the ability to spot a good investment property and purchase it below market value. Most realestate purchased for flipping require repairs and renovations. Investors should have access to a team of qualified experts who can make repairs quickly and efficiently. After repairs are made, investors must be able to sell the property quickly in order to turn fast profits.

The goal of rehabbing distressed properties is to buy, fix and sell within 60 to 90 days. This can be a lofty goal for unseasoned realestate investors.

Rental properties and flipping houses are just a few investment opportunities. Commercial investments are typically more profitable than residential realestate, but carry considerably higher risks.

Taking time to understand the pros and cons, legal liabilities, and property types can help investors develop solid strategies that generate steady cash flow. Going in blind can cost investors time and money and place them at risk for lawsuits or bankruptcy.

What type of investing is best for you?

When getting started in real estate investing so many things come at you at once that it can be an intimidating process. It may look a little like this:

Investing in a Foreclosure

What techniques will I use? Should I wholesale? Retail? Wholetail? Hold? Pre-rehab? Rehab? Take properties subject to? How about lease option? Or sandwich lease option?

How do I acquire? I could buy with cash, credit, hard money or even try to raise private money. Should I buy personally? Maybe an LLC? Or maybe even a land trust? Partnership maybe or how about S-Corporation, nah maybe a C!

What type of deals should I buy? Singles? Multi’s? Mobiles? Commercial buildings? Land?

And that’s just a portion of what entered my mind after my first 2 day seminar back in 1999!

Getting into real estate investing can prove to be the best decision you will ever make but it can be frustrating. It takes work to be successful. Real work! For the most part this is not a passive investment. Even when working with professionals who will be doing most of the heavy lifting you still have to be involved in your success. That brings me to my first point and arguably one of the most important first steps to becoming a real estate investor.

What type of investing is best for you?

In order to answer that question you need to do a self analysis and financial analysis. Not all real estate investing will work for everybody. For instance, if you are someone who has very little cash reserves you probably don’t want to build a buy and hold rental portfolio right away. Why? Because who’s going to pay for the roof when it leaks? How about the mortgage when your tenant doesn’t pay you?

Let’s take a look at the questions you need to ask yourself BEFORE you even think about getting involved in real estate, even with Homes For Investors.

Self Analysis:

How much time per week can I dedicate to my investing business?

What knowledge do I posses that will assist me in my real estate investing business?

What knowledge must I obtain in order to feel comfortable investing in my first property?

Do you like dealing with people? Do you hate it?

Who do I know that can help me succeed as a real estate investor?

The above are just a few of the questions you need to be asking yourself before you begin your investing career. Once you have identified what you are ok with, now you must ask yourself some serious financial questions. The last thing you want to do is get a part time job to pay for your real estate mistakes. Ask me how I know!!!!!!!

Financial Analysis:

I have $______________ available in the form of cash reserves in order to begin my real estate investing business.

In addition to my cash reserves I have $_______________ of disposable monthly income that I can use to pay for any unexpected costs or holding costs associated with my properties.

My credit score is __________ therefore allowing me to borrow or not borrow money from a lender should it be required.

Depending on what category you fall into will determine what real estate investing techniques are best for you. Realize, as your personal situation changes, so will the techniques available to you. Below is a broad based overview of what techniques apply for certain groups of people. Although there are a hundred and one ways to profit in real estate investing, for these purposes, I am going to focus on 4 techniques that have been time tested, and give you the criteria for using each technique.

Bad Credit, No Money – Wholesaling is your best friend. This is really the only technique you should be using. After a few wholesale deals use the profits to repair your credit. Once your credit is repaired begin to build cash reserves in order to utilize other techniques.

Bad Credit, A Ton of Money – If you are this person you have a few options. They are, in my opinion, wholesaling and buying, fixing and selling. Sure you could buy a property and rent it out but what’s your exit strategy to recoup your investment capital if you have bad credit? You don’t have one so your money is going to be tied in one or two properties and you’re out of business. It is this reason I would suggest wholesaling and retailing [buying, fixing and selling] until you repair your credit.

Good Credit, No Money – If you are this person you can probably apply for and obtain a small line of credit to get you started. Once you have obtained that money, deposit it in the bank and use it to prove to your hard money lender that you can service the debt and carrying costs on their loan. Because you don’t have much cash reserve however, you don’t want to put yourself into a situation where you have to borrow money conventionally as that might prove difficult. Because of this fact, I recommend only wholesaling and buying fixing and selling. Be careful when buying fixing and selling. Make sure you have enough in whatever line of credit you obtain to cover at least 12 months worth of holding costs plus some “what if” money for cost overruns and unexpected expenses [they always happen].

Good Credit, A Ton of Money – If you are this person then first of all, congrats, you’re awesome. You are also, because of your responsible behavior, eligible for all real estate investment strategies including but not limited to, buy and hold, rent to own, buy fix and sell and, if you dare, wholesaling! When you have good credit and sufficient cash reserves all techniques make sense financially. The trick is to determine what techniques make the most sense for YOU. If you hate dealing with people then you might not want to buy and hold and become a landlord. Conversely if you love people you may just want to! This is where your self analysis comes into play and while it most certainly comes into play for the other people we mentioned it really means the most to you because all options are available to you.

Most people spend more time planning for their vacation every year than their financial

future. Don’t be one those weirdo’s! Take a quick self analysis and determine what investing

best compliments you. Then take a look at your finances and decide where you stand. After

honestly answering some of the questions here, plus more if needed, make a logical decision as

to what technique [s] you will start out with. Once you have decided what that answer is your

next step is to set goals. I know, it sounds petty but it is not. Goal setting is paramount to your

success and a major part of getting started as a real estate investor.

Investing in a Foreclosure

With the current economic downfall, foreclosures are flooding the Real Estate Market.  Not a good thing for homeowners, but leaves excellent opportunities for investors.  If you are an investor looking to build equity, the purchase of a foreclosure would work wonders for you, if you don’t mind getting your hands dirty.  We have provided some tips on how to purchase a Foreclosure before diving into the foreclosure pool. 

When purchasing a foreclosure, you are usually going to pay 40 to 60 percent less the market value of the home.  If you really do the foot work and find the right property, you can save a ton of money on your purchase in the end.  If you are new to the investment world, there are a few things you need to know before taking the plunge.  If you’re looking fixer to repair and flip, now is not the time.  However, if you’re in a position to buy and hold, and rent your property or sit on it until the real estate recession turns around, the market the perfect time for you to invest.  You always want to go into an investment with long term goals and ideas.  You have to spend your money wisely, and make sure you can afford a mortgage even if you cant get it rented, or if you become unemployed. 

A low real estate market, shows an investor who does it smart, a excellent long term outcome.  If you go into it with all the knowledge you need, you could profit big in the long run.

It can be very tricky to negotiate the sale of a foreclosure.  And without extensive research, you can find yourself in trouble.  You may end up purchasing something with liens on it, and in turn that becomes your responsibility because you are now the homeowner of the said property.  Make sure this is information that is provided to you before you even consider writing an offer.  In order to insure that you are not making the wrong purchase, it is always a good idea to hire a contractor to come in and take an extensive look at the property before you sign anything.  Also speaking with a Realtor, about what the current market rates are, as well as what areas have a high rent ratio.  The Realtor may suggest not purchasing anything unless it is at a 30 percent discounted rate, because you have to consider how much repairs on the home are going to run you. That may hurt your profit in the end.

Now you may be thinking that you don’t want to profit from someone else’s misfortune, but your purchase of the foreclosure is reducing the amount of homes that are available on the market, thus helping to stabilize the current real estate market, in turn stimulating the economy.

Do all your homework before purchasing that great investment.  Talk with your Real Estate Agent today, and if you currently have your eye on something have them help you every step of the way, to ensure the best investment for your future.

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com

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Advice on London Commercial Property Investment

Despite the best efforts of the recession to undermine the UK’s economy, London still remains one of the most important centres for business and commerce on the planet. Prior to the economic downturn, London commercial property came at a price that was well beyond the reach of most small businesses. However, since the recession really took hold, freeholders and landlords have been forced to drop their prices, creating a window of opportunity for small businesses and private investors.

There can be little doubt that having a business with a London address carries more weight than anywhere else in the country. London offers everything a business could want: it is served by 5 major international airports that offer convenience for business overseas and hosting meetings with foreign companies. London’s underground network provides a means of transportation that can take you from one end of the capital to the other in the space of little more than one hour and the motorways and road systems that feed London provide accessible routes for haulage vehicles and nearby means to access any location in the country.

Buying commercial property in London can be a lucrative investment. With prices at an all-time low, many small businesses are taking advantage of the opportunity to expand by buying commercial property in London at prices that are now much more within their price range. For the private investor, the opportunities are even broader; buying at the low prices thrown up by the recession can only lead to an increase in capital as the property market recovers its footing. As the price of property will inevitably increase, so too will rents charged for commercial property in London. As both landlords and freeholders, investors can make a profit on either front; there will never be a shortage of tenants in London and a property bought at today’s prices should in time see substantial gains.

Anyone considering buying commercial property in London would be best advised to seek the services of a commercial property estate or acquisition agent. Their local knowledge and overall knowledge of the London property market will allow them to identify emerging hotspots ripe for investment. In addition, an independent commercial property estate or acquisition agent will be able to use their negotiating skills to secure the favourable terms possible on your behalf. With the London Olympics arriving in 2012, certain areas of the capital will experience regeneration and investment quicker than others; a good commercial property estate agent will be able to advise you as to which areas offer the most potential profitably to you and your investment ; there is much more to the capital than the West End and the City.

Property advisors, have predicted that London office space will start to increase in value at some point during the course of 2010. As a result, landlords will be able to increase the rents they charge and we should see a kick-start to London’s economy finally. Before that happens, investors would be prudent to investigate the current prices of commercial property to rent or to buy in London and see just how profitable the opportunities are that the recession has inadvertently provided.

Shivani Gurtu-Louth – Operations Manager of Devono Property Limited. Devono are the only commercial property estate agents in London to exclusively represent tenants looking for office space and commercial property in London. We can also help you find serviced offices in London. Contact: Shivani Gurtu-Louth Devono Operations Manager Tel(DDI): +44 (0)20 7096 9911 Email: sg@devono.comArticle Source:http://www.articlesbase.com/real-estate-articles/advice-on-london-commercial-property-investment-1282151.html

Real Estate Investing: Success Comes From Within – Not the Property

We all have heard and know that the majority of wealth in this nation was acquired through … Real Estate. The secret of the wealthy is actually no secret at all – they understand that purchasing properties is the key to achieving financial independence, freedom, and wealth. Because people realize this, there is an entire market of real estate investing products ranging from books to seminars to coaching programs that promise this same success and wealth. And yet ironically, the market for these products continues to thrive while the actual millionaires made from Real Estate continue to decrease. Why then do so few succeed, and what is so challenging about real estate investing?

Most people who fail in Real Estate fail because they give the excuses that they don’t have the necessary knowledge, time, or money required to achieve success.

The reality is that they lack the essential elements and attributes to be successful in anything – desire, faith and belief, a plan and goals, daily action, commitment and determination, learning from failure, and persistence! Truthfully, you do not need money to make money, anyone who is completely committed to their goal will do whatever it takes to gain the necessary knowledge, and it is not the lack of time that is the problem – it is the inability to prioritize and make time for their goals and dreams.

These same people also actually convince themselves that buying the product, attending the seminar, or actually having a coach and mentor will undoubtedly result in success and real estate wealth. These purchases may be a first necessary step, but unless belief, action, and persistence are also implemented, those books and products will gather dust on the shelf. These once excited first-time investors thus become just like every other beginning real estate investor who does not have the self-discipline, commitment, and determination to persist until their goal is realized.

The most challenging aspect of real estate investing is not in finding the ideal property, negotiating the right deal, obtaining the best financing, building a business and team of professionals, properly estimating the repair costs, choosing the right exit strategy, or developing the ability to sell regardless of market conditions. The hardest part is actually believing it is possible, having faith in yourself, overcoming fear, taking a risk, learning from failure, and putting forth daily action with a commitment to persist until your dream is realized.

Thus, consider for a moment the incredible real estate opportunities and conditions that our country currently faces (I am writing this in the spring of 2009). Notice that I used the word ‘opportunities’ – and have chosen and trained myself NOT to listen to the fear and risks the media write about regarding the current real estate market. Opportunities to achieve success, accomplish our dreams, and acquire wealth always come before we are prepared and are gone before we realize it. Let’s not be the person who in five years from now looks back to 2009 and says ‘I wish I would have bought then.’

What are your ‘I wish I would have’ statements? The reality is that these principles and this truth apply not only to Real Estate, but to EVERY goal and dream in our lives. The challenge lies not in the details of doing it, the challenge is simply DOING IT! It all starts and hinges on the stage of our own minds. Will we believe in ourselves and our potential? Will we put forth the required and necessary action to achieve success (in anything)? And perhaps most importantly, will we persist, learn from failure, and never quit until our goals and dreams are realized?

Matt is the founder of http://www.awakeyourpotential.com/ – a website focused on inspiring people to achieve their goals and dreams, live up to their full potential, and learn the secrets for success in anything. As a successful entrepreneur, Matt recently accomplished one of his dreams – to write a book! His book is entitled: “Great Games! 175 Games & Activities for Families, Groups, & Children.” To view the book and learn more, visit: http://www.greatgamesbook.com/

Article Source:http://www.articlesbase.com/real-estate-articles/real-estate-investing-success-comes-from-within-not-the-property-1516731.html

If you are thinking of buying a condominium, you must be aware that condos are not just for residential purpose, there are commercial condos too. Yes, and these are an important aspect of San Jose real estate market as they are built for offices, retail shops, hotel rooms and the like.

Be it for residential purpose or for commercial purpose, both types of condos can be rented to suit different purposes. Offices or small businesses can rent a condo space to work from that location. It would be even better if the targeted consumers are from in and around the place from where the condo is located. These commercial condos may be attached to one another, but that does not mean that one business owns all of the units. It may be separately owned by separate businesses or one big business may own all the units available. This depends on the size of business that is looking for a San Jose real estate property like this.

Are there any advantage for businesses or investors in choosing commercial condos? Well, the biggest advantage tat they receive is the flexibility and the affordability. These commercial condos are extremely affordable and can be go at a price that many small businesses can afford. Each unit is transferable and can be sold off without having to get approval from multiple parties at the same time.

There certain things that you need to keep in mind. Check out the top 3 things things you may need to consider before investing in any commercial condominium property.

1. Finding profitable condominiums: Any business likes to make a profits out of the investment they make. Similarly, those who invest in the San Jose real estate business are no different. When you invest in a commercial property like a condominium, you are buying a business, there will be marketing costs, over heads and other revenues. The idea behind any investment is to have the revenue surpass the expenses. This would result in profit that every business looks forward to.
2. Make a checklist; If you want a place that costs lower than usual, then investing in a condo is wise. Not all condos are the same. So, if you are looking for something specific, then make a checklist of the things you are looking for in a condo.
3. Permanent investment: If you have a permanent holiday destination or do not have to shift office too often then you could invest in a permanent San Jose real estate property. A commercial condo in a location where you want to set up business is a good idea. Look for a lucrative place that, which you think would yield profit.

Should You Invest In Real Estate Property Or Paper?

Investing in a real estate property can be a real headache. You have to think about inspections, appraisal, advertising, renters, renovations, etc. If you don’t want to deal with all of this, consider investing in real estate-based financial products. Three of them will be discussed here: REIT, MBS, and Self-Directed IRAs

REITs

REIT stands for Real Estate Investment Trust. This is one of the oldest real estate investment products and is made up of mutual funds that invest in actual real estate properties as well as mortgage portfolios. Similar to other securities products, they are traded on the major exchanges. REITs are managed by professional firm, allow investors special tax considerations as well as higher yields. They also offer the investor better liquidity than if he were to invest directly in a property.

There are three types of REITS, Equity, Mortgage and Hybrid. Equity REITs pull the revenue primarily from rent on properties that are owned by the fund. Mortgage REITs generate their revenue from interest on loans on mortgages. Hybrid REITs are a combination of both.

REITs are closed-end mutual funds and the shares are traded the same way corporate stock is i.e. shares are sold to other investors through a broker. REITs pay out at least 90% of their profit to shareholders in the form of dividends. They are similar to small-cap stocks and have about two third of their return on investment coming from dividends. While REITs can have high yield, they are sensitive to interest rate changes.

MBS

MBS are Mortgage-Backed Securities. They are bonds which are backed by mortgage loans. In the United States, almost $3 trillion dollars are mortgage loans and about 80% of them are covered by mortgage-backed securities. These bonds are usually more stable because mortgage loans are pooled, protecting the investors’ investment from default or pre-payment of the mortgages.

MBS work like other bonds and offers investors a coupon rate of interest. However, unlike other bonds, MBS are not repaid as one large lump sum payment at maturity but rater gives investors repayments of the principle in increments over the life of the security. MBS are sensitive to interest rate changes and can therefore be a little risky for investors. If you feel that interest rates are likely to fall in the future, it is best to avoid pre-payable MBS. Closed MBS may be a better option.

SELF-DIRECTED IRAs

In the case of Individual Retirement Account, you can take advantage of your real estate knowledge by adding assets such as land, residential homes, apartment building or commercial buildings in your portfolio rather than straight cash. This allows you to invest in real estate without having to actually manage the properties.

Regardless of the type of investment paper you choose, make sure that you do your homework and seek the advice of a financial professional. Failing to do so, could cost you a lot of money. However, with the right advice and a little bit of leg work, you too can make money with real estate-based financial products.

Stefan Hyross writes on topics that include Rosedale real estate and market information. For more information about the Toronto area, related real estate articles or to search for Yorkville condos please feel free to visit the site.

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Common Risks Involved in Real Estate Investments

While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they’ve probably lost a few fortunes in real estate along the way. This is a risky business and every property purchased doesn’t always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn’t take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.

Unfortunately, there are very few one size fits all risks for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks. Below you will find a brief overview of different styles of investing and the common risks that are involved in each.

Rental Properties

This type of investing offers some risks that are unique and some that are also risks when investing in properties that are lease-to-own or rent-to-own as well. First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.

Other risks include the risk of getting bad tenants. This is particularly hard on first time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense). Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.

“Flipped” Properties

This is one of the most enjoyable types of property investments for many ‘hands on’ investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in serious revenue (at least that is the hope). This is also one of the riskier investments, particularly when trying to turn a profit in what is known as a buyer’s market.

The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property. Other risks include underestimating the costs of repairs, over estimating the ability of the investor to do the work him or herself, taking too much time, experiencing a down turn in the housing market, making the wrong judgment call for the neighborhood, becoming overly ambitious, and getting greedy. Sometimes it is much better to walk away with a lesser profit than to end up loosing money by holding out.

Personal Residence

Keep in mind that your personal home is essentially an investment. The intention is that your home will gain in value over time and that equity in your home will build as you age. There are risks involved in this transaction as well. Buying a home that is in a ‘borderline’ area or one that is not showing obvious signs of growth is one of the biggest risks. This puts your home in the position to lose rather than gain value. This can make your home a burden rather than the investment it was intended to be. Other risks involve is becoming involved in a loan situation that is not at all beneficial (such as an adjustable rate mortgage or an unreasonable balloon payment).

Perhaps the biggest risk of all when purchasing a personal residence as an investment is failing to get a proper inspection that could rule out potentially costly and even dangerous problems within the home your purchase for you and your family. Toxic mold is one problem that comes easily to mind that most proper home inspections would almost immediately rule out. Others include structural problems that are costly to repair and dangerous to leave in disrepair. Each of these risks should be considered before an offer is made on any property.

For those seeking to turn impressive profits in short order, real estate is one way in which this can be accomplished. It is in your best interest however to be aware of the risks that are involved and take careful steps to minimize those risks. Taking these steps now may cost a little more on the front end but in many cases the pay off for doing so well outweigh the expenses.

Investors Property 2009

John Builder has been a realty writer for over 10 years at realty times new york city, he is currently working on several web sites and blogs related to realtors.
http://www.realestatecity.org/

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Everyone can invest in rural land. Rural land is fast becoming the preferred investment avenue for many because of its fast appreciating nature. The rural land you buy today can be sold for huge profits in just a few years. If you buy rural land you are assured that you have a saleable property as almost everyone needs a place to live. Buying rural land will therefore afford you the opportunity to invest in an area of the economy to which a person may have to turn to at one time or another.

Investing in rural land will give you several advantages. You can use it as strategy against fluctuations in the world economy. You would be able to adjust to the fluctuations in the economy with your investment in times of unstable interest rates and a possible diminishing of your bond value, you ca count on your rural land for income. Additionally, you can be able to take out a loan and use your rural land as collateral. In many instances, the owner had developed his rural land into an income earning property and obtained so much profit from that.

Rural rural land is one of the fastest growing area of the property. More and more people are taking their vacations in this part of the country and therefore creating a demand for property in this region. Several vacationers would like to retire to the village or country and be able to partake of all the rural side holds for them. Many hikers will like to walk the long trails or climb mountains. Others would like to fish certain types of fish that they cannot find in the city. Many go to the rural area to hunt for the game they want and in the process enjoy their sports.

Once you have the rural land, you have an unlimited number of uses. Aside the ones mentioned you can turn your rural land into a value added recreational facility. Equestrian is one option. A rural timber land is another. Still more you can use it as breeding ground for horses and charge fees for horse riding or riding lessons.

Another lucrative area is to turn your rural land into a dude ranch where people from the country can lodge and partake of rural America.

Rural land as an investment requires a lot of tact. Not every rural land has high resale value and not every rural land can be put to some intended use. Before you make the purchase, you will do well you ensure that the rural land will suit the purpose for which you are buying. If it is for recreational purposes, you will note that it has the complementary features. For example if you intend to use the rural land for fishing, it must have nearby streams, lakes or rivers and that you would particularly make sure that the water bodies have fish that angers would like. If you intend to use as a dude ranch, you must have enough acreage to build a residential property on. For a horse breeding property, you must have enough pasture on the rural land so that you can take out the animals for grazing. You must also have water in the area if you intend to do crop farming.

For equestrian properties, you will be looking for a flat rural land with gentle slopes. You will also need a place with slight wooded and one which top soil is compact. Agricultural investments will require a fertile soil with well drained surfaces.

Rural land promises a lot returns for the investor and anyone can buy them. You will only need to ensure that you are making the purchase in the right direction. The central point has been to buy something that will serve you needs in future. In this regard, the appointment of a real estate agent will help. They will be able to help you with you decisions and determine which part of the country will give you higher returns on your money. They will also be able to tell which rural land or area will appreciate faster and to what use you can put any specific portion.

Jan writes for HorseClicks Properties, classifieds of horse property listed for sale in Ohio, including Ohio farms and Ohio land.Article Source:http://www.articlesbase.com/real-estate-articles/rural-land-investing-essentials-1785761.html

The first time homebuyers want to know about how much home can they afford. A home affordability calculator helps you to determine how much money can you afford to spend on a home.

Home affordability calculator

In order to know about the amount of money you can afford to spend on a home, you need to put the value of following terms: debt payments (monthly), term of the loan, rate of interest, desired loan amount, property tax payments in the home affordability calculator. The home affordability calculator also helps you to determine whether you can make the monthly mortgage payments on the desired loan amount. Also you have to calculate housing ratio and debt-to-income ratio in order to determine how much money you can afford to pay on a home. You can calculate these ratios with the help of a home affordability calculator.

Housing ratio

Lenders look at this ratio before approving your loan application amount. A housing ratio is the ratio of your total monthly housing payment (interest rate, principal, taxes, insurance) divided by your gross monthly income. The rule is that your housing payments cannot be more than 28% of your gross monthly income.

The home affordability calculator helps you to calculate housing ratio. You have to multiply your annual salary by .28 and then you have to divide it by 12. This number is the maximum housing payment that can you make per month.

Debt-to-income ratio

A debt-to-income ratio is the ratio of your total monthly debt payments divided by your gross monthly income. The rule is that your debt-to-income ratio cannot be more than 36% of your gross monthly income.

You can calculate this with the help of a home affordability calculator. You can calculate this by multiplying your annual salary by .36 and then dividing the result by 12. This is the maximum amount that you can spend on your debts per month.

When you have calculated the housing and debt-to-income ratio with the help of a home affordability calculator, you can easily determine the amount of money you can afford to spend on a home.