Category Archives: Real Estate
Why TIC Properties Aren’t Exactly Too Good to Be True
The concept of tenancy in common (TIC) is advantageous for many homeowners and investors. TIC makes homeowner ownership more attainable because you can enter an arrangement with other people to divide a property’s price and co-own it.
The cost of a TIC can be less than that of a condominium based on square footage, which can provide a significant return at resale. Compared to condo units, TIC properties appreciate just as fast but can be 20% cheaper.
Selling a business or investment property to buy TICs allows diversification; you can have different pieces of real estate instead of just one. You can even defer tax if you use a well-structured 1031 exchange.
While the benefits of TICs can make a long list, these properties have less-than-desirable qualities, too. Before you put your dollars on real estate through TIC for whatever purpose, bear these things in mind:
TIC Contracts Are Complicated
Considering that you won’t be the only one to have a percentage stake in a TIC, the legal side of the agreement can become complicated. Ideally, a TIC contract should reflect the best interests of all co-owners. In practice, though, the rights of some parties end up being less legally covered either by design or by mistake.
Although all parties could sit down and discuss what should the contract spells out, don’t assume that all agreed-upon points would actually be in writing. Talk to a trustworthy lawyer to ensure that you won’t be cheated or disappointed.
TICs Can Become Unattractive When the Market Turns Sour
The demand for TICs for sale has increased dramatically since 2010, but they spend more days on the market during downturns. If you decide to sell yours when the economy heads south, you might need to wait for a serious buyer for more than two months.
Many people can be allergic to TICs, especially those located in not-so-popular communities, during recessions. If a TIC makes sense for your situation now, be financially ready to keep it for a while in case another housing crisis comes along.
Laws Can Be Extra Tough on TICs
The law, in some areas, limits the advantages of TICs. In San Francisco, for instance, a rental TIC owner can only increase annual rent by 1.6%; condominium landlords don’t content with such restrictions. Also, you might find it trickier to evict tenants.
Moreover, you might not be able to turn your TIC unit into a condo due to several factors. It’s best to seek proper legal counsel to know whether condo conversion will be an option for you before proceeding with the purchase.
Few Lenders Are Willing to Take the Risk
Specialized loans exist for TICs, but the lenders that offer them are in short supply. Depending on where you live, you might be hard-pressed to a lending institution that’s willing to extend credit to you.
The benefits of TICs are not a myth nor a mirage, but their potential drawbacks are also true. As with other pieces of real estate, do your due diligence to make an informed decision.
West Melbourne: Best Reasons to Be Part of the Community
West Melbourne, Victoria, is a great area to consider when looking for a new home. It offers an incredible mix of traditional and new housing options for families of different sizes and needs. It is a prime location with a range of house and land packages to suit various budgets and preferences.
Above all, West Melbourne gives you a place to belong while enjoying a good life. In fact, Melbourne, in general, has ranked first in the list of the world’s most liveable cities for the past seven years.
This year, the same index revealed the city has become even more liveable. Its west section is no stranger to the many developments in the entire city. Here are some of the best reasons this inner Melbourne suburb makes a perfect place to move to.
Dynamic residential area
West Melbourne is home to a colourful mix of people, making it a melting pot of cultures. Its streetscapes and architecture are known for their unique heritage value.
While most people look at the suburb as a rural location, it is rapidly gaining popularity as a residential hub because of the various developments particularly in areas near and around the city proper.
The community keeps growing, making the area more vibrant and the West Melbourne real estate industry more prosperous than ever.
Rich commercial area
West Melbourne’s industrial area is a key location for busy, working people. The area is conveniently located near the central business district and the metropolitan region. There are plenty of career and business opportunities there.
People who travel a lot have quick access to the airport, the Victorian road network and the Port of Melbourne. The suburb is also home to the famous Melbourne Markets. This is where you can see the vast fruit, vegetable and fish markets, as well as the National Flower Centre.
These are only some of the things that make West Melbourne a good place to live in. Explore its prime residential locations to see for yourself so you can be part of the community while enjoying the life you deserve.
4 Tips to Save Funeral Costs
Apart from the grief that people feel when someone dies, families and friends usually dread funerals because they are expensive. You need to make sure that the funeral costs do not exceed the budget that you have set for the entire funeral and wake. The following can help you minimise the expenses that come with the funeral of a friend or a family member:
Check if there is a prepaid funeral plan in place
Some companies offer prepaid funeral plans for people. This will help them prepare just in case that they die so that their families will no longer worry about any potential expenses that may occur. If you can, check with prepaid funeral plan companies and see if there is a contract that has been signed with the deceased.
Hold services at the house
You will save a lot of money if you choose to hold services instead of in the house of the deceased instead of somewhere prestigious. Make it an intimate affair with friends and family members attending as everyone tries to commemorate the life of the person who passed away.
Consider cremation over traditional burial
Traditional burial is still popular, but cremation is starting to overtake it. Cremation costs a lot less with some packages starting at a few thousand pounds. Cremation also does not necessitate the purchase of a plot of land for the dead body, which will reduce expenses.
Do not go overboard with the flowers
Flowers are a constant in most funerals. But if you think about it, they only have a decorative purpose. It would be better if you do not buy a lot of flowers as it would be useless to do that.
Even when you are grieving, you need to make sure that the funeral costs do not get out of hand. While it is important for the funeral to serve as a memorable send-off for the person who died, you also have to consider the budget.
Over Speeding: What’s Ahead of You?
Breaking the speed limit is one of the most common driving offenses in the UK. Over speeding could lead to road accidents and violating the speed limit of the area where you’re driving can result in certain consequences.
It could negatively affect your whole life, too, Freeman Solicitors says. These consequences vary depending on your violation.
Fines and Penalties
In the UK, the minimum penalty for speeding amounts to a £100 fine and your license will receive three penalty points. The law explains that when you build up 12 or more penalty points within a three-year period, it may result in your disqualification from driving.
In case a police stopped you on the road, you’ll get a verbal warning, fixed penalty notice (FPN) and an order to go to court. You will receive a letter informing you what to do. If receive an FPN, you have the option to plead guilty or not guilty.
If you plead guilty, you have to pay the minimum fine and receive the penalty points for your license. But you may also receive an option that requires you to attend a speed awareness course.
For the not guilty plea, on the other hand, you’ll have to go to court. This may lead to higher fines and more penalty points. The amount of fine depends on your violation.
Getting Off a Speeding Ticket
A speeding fine could go up to a maximum of £1,000. Fortunately, you can contest your charges with the right defence. For instance, you could tell the court that you were not the one driving when the incident occured. You can also say that your vehicle may have been misidentified. But you have to provide the necessary evidence to support your claims.
Hiring a lawyer who specialises in driving offenses could give your appeal a better chance for a favourable outcome. Your lawyer can defend your rights in court to achieve a desirable result.
Following road regulations should be the priority of every driver. This may also prevent potential accidents that may leave a long-term impact on your life.
How Much Does It Cost to Buy a Condo in Metro Manila’s CBDs?
An apartment for rent in Pasig, Makati, or Quezon City might be a better choice for many Filipinos, especially young professionals, since the average price of condominiums makes it more difficult to buy one. Colliers International Philippines said several central business districts have recorded double-digit price growth. Condos in Makati’s CBD recorded the highest increase as of the first quarter of 2018, up by 92% to P235,600 per square meter from P123,000 per square meter in the same period of 2013.
Expensive Districts
The Bonifacio Global City in Taguig ranked next in terms of price growth. Median prices for condos in the area increased by 52% to P171,600 per square meter from P112,800 per square meter five years ago. In the Bay Area, condos for sale now fetch for an average of P162,300 per square meter compared to P111,300 per square meter in 2013. Average prices in Ortigas Center recorded the smallest increase at 29% to P128,400 from P99,600. Tenants could expect cheaper rents there since prices have gone up dramatically over the five-year period. Rental rates might still be expensive, but many young professionals prefer condo rentals to any other type of residence.
Popular Cities
The Ortigas Center is among the popular choices among Filipino millennials who look for a rental place near their offices. The district’s proximity to Mandaluyong, Pasig, and Quezon City likely serves as the top reason for them to lease a unit. While Makati is a good choice too, some people would rather avoid the stress and headache of heavy traffic. A Boston Consulting Group study in 2017 revealed that commuters in Metro Manila become stuck in traffic for 66 minutes on average every day. Unless you have a lot of disposable income, it’s probably best to rent a condo instead of planning to buy one. How much are you willing to pay for rent in Metro Manila?
4 Mistakes to Avoid When Setting up Virtual Offices
This is where virtual offices come in. A virtual office allows business owners to rent space or conference rooms. However, you wouldn’t want your clients to come to a shell office, one that is not professional. For those looking for furnished offices, questworkspaces.com
Other than ensuring the services of virtual offices, there are also common mistakes you should avoid when setting up a virtual office for your company.
Micromanaging virtual employees
One of the reasons why business owners, employees, and companies opt for virtual offices is flexibility. However, business owners make one of the most common mistakes
Skimping on connectivity
Customer and team connectivity are paramount for the success of every business even if it’s operating from a virtual office. Unfortunately, some companies try to cut costs by skimping on connectivity. You need to invest in the fastest broadband connection to ensure that you remain in touch with your team and clients.
Failure to backup data
One of the sure-fire ways of destroying your business is by failing to back up your company data. The risks of losing all your data are high if you don’t backup data. The common solution would be to back up data with a cloud service or external drives.
Working without an IT plan
The other common virtual office mistake is allowing every person to come with their ideas on the technologies they want to use. The diverse ideas and passion can cause IT chaos. To avoid this, the boss or manager needs to have come up with an IT plan for all employees to follow.
When deciding to use a virtual office for your business, you still have to monitor your company’s progress and employees. Working remotely from a fixed office space has its own set of perks and disadvantage. Try to consider these avoidable mistakes before they could cost you your business.
Key Players in 1031 TIC Investments
Property investment is a landmine, so due diligence is essential. One of the vital areas in property investing is the taxes involved in your transactions.
Though property investment taxes might be substantial, the IRS code 1031 allows you to defer your taxes and grow your wealth fast.
A tenancy in common (TIC) investment is one which allows you to co-own commercial property with other investors. 1031 TIC investments like the services offered by 1031 Exchange Place can be difficult to navigate when you don’t have much expertise in the matter. Here are some key players involved in these investments.
Qualified Intermediary
This expert drafts all legal documents required to structure your properties properly for a 1031 exchange transaction. They hold and preserve the settlements from your sale proceeds to keep you from getting constructive receipts on your assets and triggering an event which will be taxable. A qualified intermediary will also review your transactions for federal code and regulation compliance.
TIC Sponsor
The stringent financing and equity requirements of a large commercial real estate might prove a hindrance to small-scale TIC investors. TIC sponsors have interests in large properties and allow small investors to purchase small or fractional property interests. These interests are called TIC interests and are sold as like-kind replacements for 1031 exchange investors.
TIC Broker
A TIC broker mainly serves a supervisory role in your transactions. These professionals are licensed and will help you identify the best deals in the market for your 1031 TIC exchange investment. The broker will also help you scrutinize your PPM (private placement memorandum) that contains all the information related to your transaction.
With the above players involved in your 1031 TIC transaction, you can be sure that you won’t suffer any buyer’s remorse about your investment. When handled well, a 1031 TIC investment frees you from the daily hassles and headaches of property management and greater liquidity. It also saves you on regular closing costs and property appraisal fees.
Three Things You Should Never Do When Buying a House
Getting your own house can be emotionally draining to most people. There are several things to consider, especially when you’re looking at hew homes in Hammond Park. Everything can be too overwhelming that some people tend to make badly-made decisions along the way.
To help guide you with the process, we’ve summed up a few of the most common mistakes that people do when buying a house.
Maxing Out Your Budget
There are several things that you need to consider when buying a house. You also have to consider fees such as taxes, insurance, utility bills, and even emergency bills.
Spending your monthly income on mortgage payments alone can be quite problematic in the long run, especially when you encounter unexpected house repairs along the way.
So, it’s better to use only a portion of your monthly salary to your mortgage, so you still have enough funds to pay for other things needed when owning a house.
Not Doing Proper Research
You need to know what you are getting yourself into, especially when it comes to your finances. So, it’s always advisable to do thorough research before you decide on getting a real estate property.
There’s also a chance that you might miss out on great deals, so it’s always better to read a few house listings so you can have a much broader option when it comes to houses.
Selecting the Wrong Kind of Mortgage
There are several types of mortgage plans that you can choose. To know which one would best fit your financial capacity, it’s best to have your loan pre-approved before looking for a house. You have to establish your budget so you’ll know how much you can afford.
Getting a house of your own can be a thrilling experience. However, it’s always important to know how much you can afford before you start your house hunting. Doing so will give you an idea of what houses will fit your budget and will also lessen any chances of disappointment at the same time.
4 New Home Purchase Mistakes to Avoid
Finally being able to buy a home that you can call yours is more exciting than stressful. After all, when all the legalities and decision-making is done, you will finally have a place to call your own. But, before the good times come rolling, you need to be able to face the reality of making the right decisions.
There are many new homes in Kansas City to choose from. The only question you have to answer is which one is right for you? Aside from knowing how to buy a home, it also pays to know the mistakes to avoid when buying one.
1. Not sticking to your budget
Unless you just won the lottery or was born to a really rich family, having a budget is a must-have when buying a new home. Having it is not enough, you should learn to stick to it for the whole process to go smoothly. Also, do not forget to set (and stick) to a realistic budget.
2. Not knowing your timeline
How long do you plan to stay in your home? These questions should be answered as honestly as possible, as it can help dictate the type of your home, as well as the amount you would spend (i.e. mortgages) on it.
3. Not seeking professional help
Invest in a real estate agent or in a broker. They might have initial upfront costs, but seeking professional help can lead you to the right path and reduce unnecessary costs along the way.
4. Lack of research
You might be fixated on your dream house, but additional research regarding the property’s location, surrounding community, and legalities, among others, can help make the whole process a lot easier. Not to mention, it can help you avoid foreseen hiccups along the way.
Keep these things in mind and avoid them at all costs. See how it can help make your purchase a smooth and fruitful one.
What to Ask Your Conveyancer
When buying or selling property in the UK, you should find the right professional services that could help make it a smooth transaction. The right conveyancer can help smoothen the process and help you complete the property deal.
But asking for conveyancing quotes and doing background checks are only the beginning. There are other methods to help you know more about your potential conveyancers. One of these is knowing the right questions to ask.
What are your credentials?
Ask your conveyancer if they have the legal credentials to practise in the UK. They should know the policies when it comes to buying or selling properties in England, Wales, and Scotland. Consider their years of experience, and if they have taken the Conveyancing Licensing Exams from the Council of Licensed Conveyancers.
How much do you charge?
Rates differ depending on the property’s value and tax regulations. Some conveyancers charge you legal fees for the solicitor and disbursements for documentation and other transactions. Some conveyancers also add additional fees for estate agent’s referrals, so you should know the kinds of expenses you need to pay for your property deal.
What do I need to prepare?
Ask your conveyancer the kinds of documents you need to prepare for your property deal. Often you can get a copy of these documents from the Land Registry. Your conveyancer should know the fees, the kinds of records, and the process for acquiring these papers.
Do you have time to manage a particular case?
If your property purchase requires special attention or advice, you should ask the conveyancer if they could manage the workload for your case. They should also have the technical experience to handle your situation.
Work with a conveyancer that understands the legalities surrounding your case, and with whom you can converse openly. Ask these questions to find one who can guide you in the right direction.
