Dominic Pickering Gives Tips To Domestic And Overseas Property Owners Surviving The Recession-hypersnap-dx

Real-Estate The key goal is to .e out the other side of the recession still owning your property. Today, the property is most likely worth less than you paid for it, but if you make it through, then you have a chance for it to recoup its value over the years to .e. All you have to do is remain the owner. Here are some tips that may help you. 1. Keep the Property Rented. It sounds obvious enough in principle but I have seen some terribly misguided decisions made by home-owners in this regard. It is generally accepted that it is much more cost effective to sell to an existing client than it is to find a new client. So one key objective is to make sure that the current tenants renew their lease when it reaches the end of its term. How can you help with that? Find inexpensive ways to improve the property (to their liking) that will encourage them to renew for a further term. In most cases, when a long term renter leaves your property, it will cost you one months rent to an agent to find you a new renter, and the property may sit empty for a month or more resulting in more lost in.e. If your property rents for $1,000 per month, the transition from one tenant to another might result in $2,000 or $3,000 of lost in.e. However a relatively inexpensive upgrade to the property such as repainting a couple of rooms, or upgrading the appliances may turn out to only cost $500 and convince the existing tenant to sign on for another 12 months. Many tenants dislike moving, and if they can obtain a small concession at renewal, they may prefer to stay where they are. If there is no renter in the property currently, then you need to explore ways of making the property more attractive to renters. Sellers often spend time, money and effort staging a home to make it more attractive. Landlords often overlook this step when renting a home. Even if tenants are not going to own the property, they are going to consider it their home for a year or so, and as such, consideration should be given to making them feel .fortable in it. Making the place clean is obvious, but attention should also be paid to items like the ambience and the color scheme. I have known people refuse to rent a property because the toilet plunger looked old and used. A new one cost about 3 bucks at Walmart! For many renters, its all about the money. They are going through a recession too. So sometimes you need to be creative with the charging method. You dont necessarily have to reduce the rent to get them to renew, but you could give them a $500 discount on the property for the month of December if they renew for another year. I saw this done once, and the tenant was overjoyed. It meant they could afford a nicer holiday period without really having to budget any extra for it. The landlord of course, was able to tie the tenant to another year of renting without the fear of the property sitting empty. There is a lot to be said for learning a little bit about your tenants. Just enough so you can tempt them into a renewal contract. 2. Dont Pay Off Any Credit Lines Strange as it seems, when we see tough times on the horizon, some people get the urge to reduce their monthly outgoings. That seems fair enough, right? But sometimes that includes taking some savings out of the bank that are earning a lousy interest rate and paying off a car loan with a high interest rate. At certain times that could be a sensible idea, but when you think times might get a bit tough, keep your savings liquid, and dont pay off any loan of credit line. Once you have diminished your savings, you are at the mercy of whoever will lend you more money, and in a recession that is almost no-one. So let the car loan run, and just meet the monthly payment. The same goes for the home equity loan, school fees loan or whatever. Leave the maximum amount of savings liquid as you can, as this will be the fuel that enables you to meet the mortgage repayments on your investment property loan, and allows you to navigate your way through the recession. 3. Push Your Lender For A Better Rate. You dont get if you dont ask right? Banks are not particularly keen to cut rates for existing clients, especially as they know that it is not easy to find remortgage funds elsewhere at present. However, there might be some opportunities. I met someone who managed to convince his bank to shave the rate on his mortgage if he agreed to move some savings he had in another institution over to the same bank. Other banks may have similar deals they will strike depending upon your own personal circumstances. The better your credit rating, the more chance of being successful, which leads me to the final point 4. Make Your Payments Without Fail Easier said than done but this is crucial. It means making sacrifices. It may mean cutting back on luxuries, or vacations, or even small things. But other than health and families, few things must ever .e in front of meeting those payments. Its not forever, and it might feel pretty un.fortable for a while. This is the true test of an investor. I heard a story recently about a woman who had a property repossessed in Bulgaria on the basis that she could not meet the payments, yet during this time, she continued to vacation in Florida. She blames the recession for her loss, but the truth is it was her own lifestyle which she wasnt prepared to put on hold for a few years which was to blame for her plight. Are you a true investor, and do you have the stomach for it? Only you can decide. The recession will not last indefinitely, but it will polarize the market. When we finally get through it, there will be a huge number of renters that used to be owners, but who lost their properties through foreclosure, and will now not be able buy again for many years. They will have no choice but to be long-term tenants. On the other-hand, there will be those that have been lucky or smart enough to remain as owners throughout the recession, and can now look forward to increasing house prices. In short, a few years from now, rental prices will increase as demand from tenants will out-weigh supply from land-lords. Heres to helping you remain one of the latter. Happy Investing. About the Author: 相关的主题文章: