Tag Archives: Estate

Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!

How to Become a Successful Real Estate Developer

Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on…

1) Do Your Location Homework – did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It’s true – whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.

Take the necessary time to learn all about a town or city you’re considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. If there are inner-city redevelopment projects planned examine the real estate market in the immediate vicinity, if there are areas that are booming right now examine the immediate neighbouring areas for their potential for future prices rises for example.

Don’t follow the crowd – have the confidence to buck the trend and get ahead of the curve by positioning yourself in a market that is about to boom rather than in one that has already blossomed.

2) Know What You Can Afford – While it can pay to sometimes speculate never be tempted to jeopardise your own home. Work out your finances and be ruthlessly strict about what you can and cannot afford as a down payment, for mortgage costs and for the renovation and redevelopment of your next real estate investment. Only proceed within the confines of your tightly allocated budget and do not be tempted to over extend yourself particularly if competition in the property market is tough and the market is slow or stagnant.

3) Identify Your Target Market – Having identified your next location for property investment identify the types of people who buy into renovated properties in that location. Know who your target market are going to be and what they are likely to look for in a property in that location. If for example you’re examining inner-city spaces you might identify that your buyers will be young single professionals and that the ideal property type for these people will be luxury low maintenance apartments – seek out suitable properties with the potential for redevelopment into luxury low maintenance apartments and you will fulfil your target market’s brief…seek out large houses with substantial gardens in the area and you will have totally missed the market and potentially created a property that will not sell!

4) Renovation Not Rebuild – Know your budget limits and your personal skill restrictions. Do not consider taking on a property that is in need of a complete structural overhaul when your budget is tight or you do not personally have the time, skills or inclination to do the structural work yourself. Be realistic about what you and your budget can achieve and seek properties that fulfil that brief. Pay to have an independent and complete survey done on any property you are seriously considering buying before making a down payment to ensure that there are no hidden surprises waiting for you beneath the floorboards to eat up your budget in its entirety.

5) Manage Your Budget – With your survey in hand you can approach builders for quotations and seek out prices for fixtures, fittings, finishings and furnishings. Take the prices quoted and sourced and build your budget. Factor in ongoing mortgage and service costs and labour costs as well as your findings and structure and allocate your money accordingly. Watch every single spend and be ruthlessly strict with yourself and your builder. If at all possible have your builder commit to a contract with fixed finish dates and fees and stay on top of every single penny or cent every single day. At the end of each week tally up your outgoings and expenditure and ensure you’re not exceeding your budget. If you’re overspending rein it in or you will have to shave it off other areas of the development. Remember never to scrimp and save on finishing touches and always give yourself a realistic fall back fund in case of emergencies.

6) Appeal To The Widest Market – Forget putting your personal stamp on any property you develop – YOU are not going to be living in the property! You should already have identified your target market which will give you a good idea of the level and quality of finish expected, now meet those expectations without adding your own personal taste into the equation. By appealing to the widest market or the lowest common denominator your property will be attractive to the majority of buyers making it faster and easier to sell on and profit from.

7) Make Friends With A Real Estate Agent – Your greatest ally when developing property will be your real estate agent. Make friends with these guys and you will build a beautiful and successful symbiotic relationship in which you both profit to the maximum! Real estate agents are a fountain of untapped knowledge about the local market, who is looking for what property in which area, which additional features cost little to add but which push up the asking price and what a buyer expects from your particular property type. Get the facts from your real estate agent and then apply their advice. You will create a property they can market for top dollar and to the widest market – you will make more profit and they will make a bigger commission ensuring a beautiful and lasting friendship!

Finally, remember that when you’ve bought, renovated and sold on you’ll be looking for that next property opportunity and any real estate agent who you’ve worked well with will be on the hunt for suitable real estate for your next investment making any subsequent purchases that much easier to source.

Hard Money Lenders in Los Angeles and the Real Estate Market

Los Angeles remains a very attractive market for those who can afford it. The California Association of Realtors reports that home prices in Los Angeles have increased 6.1 percent this year to date and are projected to show a 6.5 percent gain for all of 2015. Meanwhile, in Los Angeles County, prices are reported to have shot up 5.4 percent so far this year. These figures include detached and attached single family homes and duplexes. Century City Real Estate Report says that some L.A. luxury neighborhoods have already passed the 2007 peak. This situation makes a wonderful market for hard money lenders, since many investors are rearing to buy, but they are leashed by miserable credit ratings and credit histories. Shunned borrowers turn to hard money lenders in their area who hand them the funds based on their collateral.

Here is the Los Angeles real estate data for 2015-2016

The California Association of Realtors projects sales figures of 407,500 single family homes by the end of 2015. This will be an increase of 6.3 percent over the homes sold in 2014. Projections for 2016 are also for a 6.3 percent increase to a predicted 433,000 units next year.

In Los Angeles, some data sources, such as the California Association of Realtors, show that the median sales prices for single family homes and condos shot up 8.1 percent to $950,000 for the 2015 third quarter; a record high for the Greater L.A. area. Regions include Westside, Downtown and coastal cities like Malibu, but omit low-priced areas such as South L.A..

One way to understand real estate price cycles is to look at the building permit numbers. If developers are investing in new properties, as has been happening in the general Los Angeles area, it is a good sign that demand, and prices, are rising or keeping steady. Statistics shows a growth of 2.4 percent in building projects.

Observers are concerned that Los Angeles may be approaching another housing bubble, but William Yu, Economist for the UCLA Anderson School of Business strongly negated this prediction in a recent UCLA Anderson Forecast. Prices have shot (he said) in an already expensive L.A market only because of excessive demand and limited supply. This is no housing bubble but a hugely pricey and unaffordable situation where those with money either do, or would like to, invest. In fact, the market is mostly catering to the very wealthy. Typical reports show that builders and investors are looking to the high-end luxury market where potential profits far exceed the profit that an investor can realize from the average priced home. This kind of high-end residential development needs investors who have the right kinds of funds. Some individuals go to the banks for their loans. Other approach alternate traditional lending institutions.

What about those without money? Or with poor credit who are unable to procure a loan?

This is where hard money lenders come in.

Los Angeles hard money lenders

The Los Angeles money lending directory shows 56 hard money lenders and the listing grows all the time. Experts in the field know that there are many more who are listed in other places or remain unlisted. These (and other) brokers lend their personal funds to residential and commercial borrowers. The hard money lenders ignore the credit history and FICO scores of these borrowers focusing instead on the value of their collateral. If the borrower defaults, the lender sells his property as repayment.

Many investors rush to hard money lenders for their speedy turn-around (typically less than a week) and for the simple and easy procedure (merely a few papers and a handshake). They detest the high interest rates (double to those of the banks) and the low ratio-to-value loans (sometimes as low as 60%-50%). Many borrowers tend to get hard money loans for the immediate short-term future and then repay with bank loans or cover the rest with alternate funding. Hard money loans are expensive so most borrowers try to use them for as short a time as possible.

The Los Angeles hard money brokerage is diverse and vast. You will find lenders dabbling in all sorts of deals and lending to a variety of investors. Lenders also offer varying sums and for varying amounts of time. Since lenders work independently – after all, it is their own funds that we are speaking about – they set their own terms and schedules. If you go that route, make sure your lender is certified by the L.A. regulatory real estate Board and by the National Mortgage Licensing System (NMLS). Also look into his credentials and borrowing history. And best of all: have an attorney review all agreements before signing.

The bottom line is this…

The Los Angeles rising prices and tight inventory have driven more investors to the high-end market. Investors have run out of flips but there is a wider market for the higher-paying population or for wealthy foreigners. This type of inventory drives prices higher and is expected to shoot them higher still over the coming years as there is scanty new construction in the pipeline to meet demand.

For those in LA who want to make the most of this luxury market but lack the funds to do so, employing a hard money lending broker may be a feasible solution. This type of broker ignores the credit history and focuses on the asset. Luxury assets seem to have high potential. If the borrower can show the broker his ability of repaying and convince him of the value of his property, the borrower may be able to find an alternate means of landing a spot in LA’s luxury market.

The California Association of Realtors predicts that home prices will likely “grow steadily” in the end of 2015 into 2016. Many investors in Los Angeles are approaching hard money brokers to fund their immediate needs. How does this solutions sound to you? Feasible?

Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

The Prices Of Aspen Real Estate Are Not Extraordinary Anymore

Aspen real estate has always had a treasured place on the upper tears of the price ladder. But what enables us to judge if real estate is pricey or affordable. There are two different ways to measure this: Real estate might look cheap or expensive compared to the budget you have for buying a property and it might look reasonably or excessively priced compared to other luxury real estate in other resorts like Deer Valley or Utah.

The first case is to do with your personal finances. Your budget is setting the tone. If you have $300,000 to spend on a condo then Aspen or Snowmass will definitely look expensive. On the other hand if you budget is $3 million then comparing Aspen properties to other luxury ski destinations will show you that prices are on par or lower than its competition.

Aspen condos in the central core of town range from about $1,300 to $1,900 per square foot depending on all the usual criteria like location or state of upkeep. Prices in Vail, Colorado are about the same for Lionshead and Vail Village developments. International real estate prices, for example in Dublin, have far outpaced Aspen. For international buyers Aspen can feel like a bargain.

The weak US Dollar is doing its share to make US properties look attractive for buyers from the Euro zone or British citizens.

Aspen and Snowmass with its few thousand single-family homes and 5,000 condos between them are on par with standard Manhattan Real Estate. This is not comparing Aspen to the Fifth Avenue co-ops that demand prices of up to $6,000 per square foot. Manhattan with its millions of dwellings is priced similar to a luxury resorts like Aspen and Snowmass. This should ensure that real estate in Aspen will do well in the future.

The US Real Estate Faces a New Crisis

This time last year, my wife called me and said the four words no husband ever wants to hear…

Honey, we have termites.

I shouldn’t be surprised. I mean, we live in Florida – everyone gets termites here. The pest-control guy had found the clue – a few bug wings. But where was the nest?

I found it soon enough, up on our second-story deck. The structure’s made of concrete, but the decking itself? Yep – plywood. Just walking around up there, you’d never see it. But the critters had bored a little hole through the tarpaper sheathing, steadily chewing away the wood underneath.

It’s not unlike the new U.S. real estate boom. It appears a bedrock of economic strength. But as I’ll show, events far away – in China – are now weakening this market in subtle, powerful ways, with repercussions for the U.S. economy itself.

When people talk about the rebound in U.S. real estate, primarily they’re talking about luxury homes. It’s the hottest, most lucrative end of the market. Sales for houses priced above $1 million rose almost 9% last year, more than double any other price category, according to the National Association of Realtors (NAR).

Buyers from China are the ones setting those record prices. How?

One is sheer numbers. Chinese buyers account for nearly a third of all home purchases by foreigners in the U.S. (and nearly triple those of Canadians, the next closest nationality group).

Two, Chinese buyers are more than happy to pay above top dollar – their median purchase price is $523,000 – more than twice the U.S. average.

Three, cash is king – and Chinese homebuyers love cash. According to the NAR, 76% of Chinese purchases were all-cash transactions.

First Australia, Then U.S?

But what happens now, after a 40% crash of the Shanghai Composite Index, and a still-slowing Chinese economy?

If you read the headlines, the “expert opinion” is uniformly bullish on what China’s woes mean for U.S. luxury home purchases. The rationale is that further weakness in China will only spur mainlanders to buy more U.S. real estate, not less.

To me, that sounds like bubble talk. I heard similar rationalizations when I was a financial journalist, covering the boom and bust of the U.S. housing market.

Perhaps America’s luxury home realtors should look to Australia, where Chinese property buyers also drove up luxury home prices to insane levels. More recently though, sales have started to tail off in the places where Chinese buyers are most active – the two largest cities, Sydney and Melbourne.

And Morgan Stanley, in a recent note, became the first major financial institution to declare that Australia’s housing cycle has peaked. The bank’s analysts expect “further declines in auction clearance rates (i.e. sales) and house price momentum, with a negative impact on construction occurring over 2016.”

Could the U.S. luxury home market not be far behind? The anecdotal data certainly points in that direction.

Realtors in the San Francisco Bay area now tell local media that buyers from China are hitting the “pause button.” Another said she’s seeing price reductions among her high-end ($3 million and up) properties. A Sotheby’s agent told KCBS-TV, “It’s been a little slower now. I feel like there’s been some kind of shift.”

In Miami, where Chinese buyers were a rising force in the marketplace, luxury home sales fell 10.6% in the most recent quarter. The number of listings keeps rising too – up 15% from year-ago levels.

Recession Risks?

Even the Chinese themselves may be seeing the writing on the wall. I ran across an article on a Singapore-based website aimed at high-wealth, English-speaking Chinese recently. The title of the article? “Now Is Not The Time to Buy in San Francisco.”

The national data also raises an interesting point. In a midyear report, Realtors.com noted that the total number of foreign buyers of U.S. real estate fell 10% in the 12-month period ending in March. Yet the dollar volume of their transactions (we’re talking residential sales here), rose 13% to a record $104 billion.

Translated, it means fewer buyers chasing higher prices. To me, that says “bubble.”

So let’s say I’m right, and that bubble has peaked. What does it mean?

Morgan Stanley, in its recent call on Australia’s Chinese-fed housing bubble, believes the coming U.S. real estate slowdown raises the risk of a recession in the Land Down Under.

Could it happen here too?

Considering so many of these homes are purchased for cash, the risk to the banking system seems minimal.

On the other hand, homebuilders haven’t been this confident in years. This summer, the Wells Fargo/National Association of Home Builders sentiment index hit its highest level since November 2005 – just before the U.S. real estate sector went over the cliff.

Likewise, the boom in luxury residential sales spurs a Field of Dreams mentality (“If you build it, they will come”) among builders and developers. That means lots of speculative development, and ever larger orders for lumber, concrete, premium windows, cabinets and lots of other high-value building components.

What happens if real demand doesn’t meet expectations?

It’s just another sign, as Jeff Opdyke has mentioned often, of a U.S. economy left with very few “legs” for support.

Boston Condo Market In Real Estate Frenzy

The Boston Condo Market has been on a mega rebound over the past few weeks. Downtown inventory rates have dropped significantly and prices are still climbing. Many Boston condos that we have been tracking over the past few weeks have went under agreement at full or over asking price showing the stability & possible frenzy in the 2007 Boston real estate market.

Last week we all read about the real estate frenzy going on in Manhattan right now. Is it the buyers who have been waiting for the bubble to burst over the past 18 months and now are faced to purchase now or rent for another year? Is it the low interest rates that are still active in our marketplace? What is causing this new renewal of the Boston real estate market?

New condo developments in Boston are also on the hot seat. With even more projects coming up this shows the lack of luxury condo properties or full service condos. We are glad to see more of this type of condo property being built as it is the wave of the future. The Back Bay, Beacon Hill, Brighton Allston, Charlestown, Chinatown, Fenway, Leather District, Midtown, North End, Seaport, South Boston, South End, Waterfront and the West End in Boston are all hot and downtown Boston will continue to boom.

Not surprising, some immediate suburbs like Brookline, Newton, Medford & Quincy are also picking up on this trend. Traditionally these markets don’t cater to the full service young professional, however, we are seeing all new types of luxury condominium properties popping up around the skirts of Boston also.

Indian Luxury Real Estate – Then and Now: How Has It Changed Over the Years?

From time to time, Indian luxury homes have seen plenty of turning points. The subsequent article talks regarding the ever-changing times and with it, however, the definition of luxury has been modified. Also, we have a tendency to perceive the present state of affairs of luxury realty in India and a few of the Indian residencies that are far-famed globally. There has been extraordinary amendment within the approach we have a tendency to outline luxury nowadays. Talking regarding earlier times, luxury was just for the wealthy however nowadays the builders have made it possible for the average person to afford the luxury.

What’s luxury? If we go by the book, luxury is a few things that define a state to excellent comfort and class and involves hefty expense. If we have a tendency to elapse realty which means, luxury suggests that having access to amenities that provide you with a more exquisite living.

Today, the Indian realtor market sees luxury housing as one of the quickest growing sectors of real estate. Growing economy, growing aspirations and ever-changing lifestyles are some factors that effectively contribute towards the expansion of luxury realty. Additionally, allow us to observe however luxury housing has altered its definition from the past to this point and what’s the present state of affairs of luxury realty in India?

The Golden Age of Luxury

Earlier, luxurious homes were outlined by palaces that the rajas and maharajas of our nation owned. They featured a variety of spacious rooms, stunning design, chandeliers, gigantic doors and an area that would accommodate more than a thousand of individuals. These were the residences of royalty that lived there in luxuriousness and grandeur manner. Nowadays the royal palaces are either used as a heritage building or some are restored to luxurious hotels.

The glorious and spectacular royal palaces still have the luxurious feel. The royal palaces that took years to complete had labyrinthine styles that beautified the appearance of the palaces. But, nowadays luxury housing includes a totally different image.

The Luxury Housing Division of these days

The luxury housing division is the in trend of the realty market and also the numbers of individuals choosing luxury are rapidly growing. The definition of luxury remains constant, solely distinction that these days it’s affordable by an individual not belonging to the royalty. The developers are constructing top-grade projects that enable the residents to reside a lavish life with the access to any or all amenities that one aim. Indeed the state of affairs is such, that the luxury real estate these days forms a serious part of the entire real estate market of India.

Luxury homes in India these days vary between Rs. 1 crore to Rs. 15 crores and are very demanding even once the market is facing a rigid condition. Indeed individuals looking for affordable housing faced the inflexibility within the market. The luxury real estate market was hardly laid low with the market state of affairs and in fact, manifested to be profitable for the developers. There are some reasons why there’s a sudden shift towards luxury within the realty market today:

  • Luxury and ultra-luxury projects have reported nearly 10 times appreciation from the launch value.
  • Encouraging pre-sale activities that led to complete selling out of entire projects.
  • Developers are ready to secure important fund flows to capitalize the completion of the project.
  • The expanded visibility and reliability of the builder name among the market that results in higher sales of the mid-range housing project by the builder.

Some Luxurious projects in India

Other than these Builders like Hiranandani, Lodha group and more are constructing homes that are reasonably priced by the high-end segment. To name a few projects those fall into the luxury category; Sikka Kingston Greens in Rajpur Road Dehradun, Emaar MGF’s Marbella, World Towers in Worli Mumbai and Panache Valley in Sahastradhara Dehradun by ABL Projects.

Different Developments You Can Get From The Top Real Estate Companies

For people searching for an excellent real estate investment, the only logical option you’ve got is to invest in luxury properties. Such structures will offer the right balance of elegant design, exclusivity, highly coveted addresses, sophisticated amenities, and sophisticated branding that those with a taste of the good like are sure to cherish and love. In order to meet the preferences and demands of their high-end market, luxury real estate developers are now offering a wide range of properties that are sure to address various investment considerations.

Kinds Of Properties That Reliable Property Firms Offer

Hotel Suites – When the experience of high-quality hospitality appeals to your sensibilities, your best option would be luxury hotel and hotel residences. It comes with well-loved features like sky lobbies with very stunning views. These features will include sophisticated spas, rooftop infinity swimming pools, and private screening rooms. The promise that these luxury hotel residences offer is fashionable living. Apart from that, you can also choose to let these properties earn an incredible rental income for you in case you are in another part of the globe.

Vacation villas, mansions, and homes – Some rich investors want to make a home out of a quiet pocket of space in the middle of the busy city. These developments will offer mansions, homes or villas that can act as your main residence. No matter what setup you choose, the experience of luxury you get to enjoy remains the same. You and your family can prosper in an exclusive community with its own beautiful tropical rainforest, very spacious areas for different outdoor recreation like sparkling water features and cycling, and a well-designed road network system and master plan. These properties will also boast of different kinds of environment-friendly technologies for harmony with nature.

Luxury apartments and condominiums – In a thriving and dynamic city, it is no doubt that the rich wants to be in the center of it all. They want to be nearby high-end dining and shopping establishments, the central business district, recreational centers, and the top destinations of tourists. For these people, a great piece of luxury property situated in a prime location would be the thing they need. Be aware that some of these residential properties might face golf courses that can provide them with excellent views of the lush greenery from their apartments. Apart from that, the towers housing these apartments can have their very own retail establishments. Thus, residents can have everything that they need without the need to venture out of the community. Most importantly, residents will have year-round accessibility to superlative amenities.

7 Things You Should Know About the NYC Luxury Real Estate Market

1. You DON’T have to spend a ton of money. (Relatively speaking.)

Plenty of strategies exist for those who want to purchase NYC luxury real estate but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in a lower floor of a luxury building. A second floor unit can cost as much as 19% more than a comparable unit on the first floor. Another option is to seek units with higher maintenance or common charges per month, as those often have lower asking prices. Alternatively, some lines in a building can carry a higher price tag than others… for instance, a unit line with windowed bathrooms will fetch much more on the open market than a line whose bathrooms are lit only by fixtures.

2. Get Bank-Approved.

If you need a mortgage to purchase a NYC luxury real estate property, you will want to get a mortgage approval letter from your bank stating the amount of mortgage loan for which you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers who are “bank-approved.” A bank qualification letter is not the same as an approval letter, and will not qualify you to see a property under bank-approval requirements.

3. Know Your Terms.

In the real estate industry, “terms” refers to the stipulations under which money is given. For cash-closers, this relates to among other things, how many days needed to close. For mortgage holders, it refers to your percentages for interest as well as time needed to obtain the funds from the bank and transfer them into the appropriate ESCROW account. In a real estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they will get to recoup their original purchase price. If you know your terms inside and out, it will make it easier for your broker or agent to negotiate with sellers for you.

4. You CAN do your own research, and you probably should.

According to the National Association of Realtors, 88% of individuals start their real estate search online. In New York City, home of the savvy shopper, over 90% of buyers and renters start their search online. The importance of doing your own research is to be ahead of your competition – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its own amenities to offer. Each area of Manhattan has its own disadvantages, quirks and advantages. And not every real estate agent or broker is equal. You will want to some conduct some preliminary research in order to stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to our next point…

5. Competition IS fierce.

You’ve probably heard this adage before in regards to the NYC Rental market: bring a bank-certified check with you and be ready to close on a rental unit you like as soon as you see it, because the next person to see it might just snag it from under your nose. Similar fervor applies to the NYC buyers’ market, especially for luxury NYC real estate. International all-cash buyers are most likely your strongest competition in the NYC luxury market. They can walk right in and say “I’ll take it,” and cash buyers can close in as little as two weeks. Know your own financial situation, and know just how quickly you are ready to move on a property you like. The ability to quickly move into ESCROW will give you a significant advantage against other buyers.

6. You NEED a competent broker.

Just because a property falls under the luxury umbrella, does not necessarily mean that it is problem-free. Structural problems such as improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are just some of the problems one can find in any property. That is why it is integral that one conducts a home inspection before signing on the dotted line. Most importantly, make sure your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the property if the inspector finds a problem with it. A competent broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.

7. The NYC Luxury Real Estate Market never really dipped.

The New York City real estate market is a market unto itself, comparable to none other in the United States. It plays by its own level of supply and demand rules. International demand for NYC luxury real estate continues to be one significant reason why Manhattan prices are so high compared to other areas. REBNY reported that 2012 was the most successful year (over $30 billion in property sales) for NYC real estate since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than in any month of 2012. Sales numbers across most brokerages point to the fact that we are continuing to trend towards a sellers’ market, as sellers and co-op boards continue to be able to pick and choose among a pool of possible buyers. Know that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your approach to purchase.