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UK Real Estate Market: Economic Current Situation and Forecast

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In the United Kingdom (UK), the real estate industry includes buying, selling, renting, and operating either owned or leased land property. It also includes real estate activities that involve paying and contracting. The market divides into two sectors, commercial and residential. The Real Estate market is one of the most contributing sectors in the economy of the United Kingdom.

The real estate market (commercial subsector) in the United Kingdom is the biggest in Europe, following by France and Germany. Since 2016, investments in commercial property had increased over 500 billion pounds by the year 2018. Several factors influence the market dynamics of the real estate industry, such as the climate of the economy, the shift in supply and demand, etc., resulting in changing the availability, vacancy, costs of rent, etc.

Housing Market in the United Kingdom

The housing market in the UK had a positive history in 2020, even since the lockdown period. It seems that many people want to buy a new house or move to other places.

In October 2020, statistics showed that North England has a good reputation in the real estate market, having a vast number of renters increased their rent and house prices.

Various factors can affect the housing market in the UK, i.e., the recent pandemic crisis. Since there are lockdown rules and restrictions now, many people wish to buy their own house. Another example is the decrease in interest rates.  Low-interest rates are favorable when property investors or homebuyers acquire a loan.

  • Conditions of Housing Market in 2021

The price growth of UK houses in 2020 had an average increase of 7.3%. Savills (a real estate company in the UK) revised a predicted outcome of UK house growth in 2021, from the percentage of 0% – 4%. Since the UK has a low mortgage interest rate, it might attract and help homebuyers.

  • Price Growth of UK houses for the Following Years

Savills predicts strong growth in UK housing prices. According to them, most sellers in other countries do not give up or sell their property for a low price.

The demand for buying a house will not decrease because new dwellings are slow down, and most people are doing work from home. This market behavior is making the housing prices increase, expectedly.

In 2022, strong price growth of UK houses is forecasted. Despite the predictions, though, the housing market is expected to cool down in the future. The cooling down may depend on economic growth. If the economic growth reduces, the price growth of UK houses might reach normal levels.

Nowadays, the prediction of UK housing prices is 4%. For the following years, it would be 5% (2022), 4% (2023), 3.5% (2024) and 3% (2025). Five years from now, house prices are expected to increase by 21.1%

  • The Regional Growth is Strong for the Coming Years

Savills thinks that the south-east and eastern part of London will lead UK house price this year. Also, price growth is expected in places that are further away from the capital.

In 2022, Yorkshire, Humber, and the northwest part of England will lead having a 6% price growth of houses.

The expected significant increase from now to 2025 is in northwest England (28.2%),  followed by Yorkshire and Humber with 28.2%. The largest growth in real estate is expected to be seen between 2021 to 2025, with a 28.8% rise in the northwest. Yorkshire and the Humber will follow closely with a projection of 28.2%.

Causes of Price Growth of UK Houses

  • Strong buyers’ demand.
  • Having a home during the pandemic period is important.
  • The number of properties is slightly increased.
  • Some London’s citizens migrate to other places such as Scotland and the northern part of England.
  • Lower mortgage interest rates.
  • Benefits of stamp duty holiday.
  • Urgent need for a home during the pandemic lockdown.
  • When the economy improves, some foreign buyers are willing to buy a home.

Statistics of UK Renters

The English Housing Survey in the UK reported 4.5 million people in England live in privately rented homes. At the same time, 4 million people live in socially rented homes.

According to the survey, most people who rent in private (71%) said it is easy to pay the rent with 33% of their income. While social renters have 28% and mortgagors have 17%.

Tenants Report

The report stated the main reasons why tenants move in the last three years. First, it is job-related (18%), second is moving to a good neighborhood (16%), third is moving for larger space (13%), and 12% moved because of the request of the landlord.

63% of tenants who privately rent have no money saved, and 33% reported that they don’t have much savings. 58% of British renters said that they’d want to buy a home of their own. 77% of young Brits plan to buy sometime sooner, at some point in their life.

The Importance of the Housing Market in the UK Economy

When the prices of UK houses go up, most homeowners would probably feel more confident.

Conversely, when the prices of UK houses go down, homeowners would think that their home will have less worth, lesser than their mortgage.  So, homeowners would practically stop spending money and start making some investments.

The most significant source of debt in UK households is a mortgage. So, if many people have loaned a larger amount of money, bigger than the value of their home or income, the banking system is at risk, affecting economic growth.

 

Conclusion
The real estate market of the UK is in good condition, especially the housing market is in demand during these times. Many people might want to buy a new comfortable home since all the activities nowadays seem to occur at home due to the pandemic crisis.
Most people are working at home, and some are not allowed to travel, making people want to have a better place of their own. However, the housing price growth is just a prediction, and some factors may affect the outcome, such as the standing of the economy and the shift in supply and demand.

Why a Real Estate Investment is a Good Decision in 2021

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Real Estate investments are among the safest investments in a portfolio since they are under the category of asset investments with a physical substance that depreciates over time.

Aside from generating passive income through the purchased property, it is also a great long-term investment since its value can increase over time. Moreover, you can include real estate investments in your overall asset management plan to increase your wealth.

But to do so, you have to make sure that you are prepared to invest in this industry.  

In the beginning, you might have to spend quite a lot of money for upfront expenses to start a real estate investment, i.e., such as purchasing apartments, houses, lands, etc.

Reasons “Why it is a good decision to invest in the Real Estate Industry.”

Cash Flow Is Predictable
Cash flow means the net balance of cash from an investment after all the mortgage payments and operating costs have been paid. When you make a good investment in real estate, you can have a 6% or higher cash flow.

The Value’s Worth Increases
Corresponding to the National Association of Realtors, the appreciation levels in real estate have been 6% each year since the late 1960s. These statistics include the economy’s downturn at the start of 2007.

Real Estate Gives You an Edge
With Real estate investments, you earn the advantage of leveraging. How?  Using the money you borrowed, you get a leverage advantage since you can use it as investment capital to gain additional funds from potential ROI (return of investment). Furthermore, you can use the mortgage to lessen the initial cost of the investment for buying a property. The yearly return you can get from a $200,000 property with a net cash flow of $20,000 paid in cash is 10%

Let’s say you have a loan of $150,000 which has 5% interest and 30 years’ amortization. However, 75% of the money you paid to buy the property is from a loan. Even though you factor in the expenses of paying the mortgage, the return is 22% yearly.

After you have created equity in a property, you can have an edge in the cash you invested in and refinance your original loan to increase equity or secure another loan. As a result, you have money to purchase another property.

Equity Builds Up
You can purchase several properties with a small down payment as long as the balance is given through debt financing by a lender. In the long run, the capital of the mortgage will slowly be paid off and becomes more rapid by the end of the amortization period.

Real Estate Can Be Renovated thus Improve
One of the attractive and unique benefits of a real estate property is that it can be renovated. Real estate properties are tangible because they use brick, concrete, wood, and glass when build. Therefore, you can make improvements in the value of the property through renovation.

Regardless of whether the repairs are aesthetic or structural, the principle is the same. You can earn more since you can choose what you want to enhance.

Real Estate Corresponds with Retirement
When you purchase real estate, the principal reduction on a mortgage and cash flow is lower. Once payments are made on the mortgage, the cash flow increases, and you can earn more over time if the property is a forced savings program. Therefore, real estate is an ideal investment for retirement because the cash flow increases as time pass by.

Tax Is Deductible
Different deductions are allowed for standard expenses incurred when you own real estate properties because of tax codes. Some of these expenses are maintenance, upkeep of the property, developments, and the interest payment for the mortgage. These deductions can compensate for your income and lessen the total tax payment.

Real Estate Depreciates
Depreciation is a non-cash cost allowed by tax codes that depreciates your investment property’s value over time; thus, the value of your investment increases. The decrease in depreciation provides a real estate investor with a better cash flow and reports a low earning for tax purposes. Subsequently, you get a higher ROI more than you expected.

Tax Rates Are Lower
After a year, the gain you earn from selling an investment property is subject to the tax rates from capital earnings. Depending on your tax bracket, it is usually 15% or 20%, which is typically lower than the personal tax bracket.

Real Estate Can Expand Your Portfolio
Real estate is a way to lessen your risks. A real estate property is more advantageous when you have invested a lot of money in other ventures. Many experts suggest expanding your portfolio in order not to lose everything at once in the case where the industry you have invested in goes down. Real estate is an ideal investment because it is much safer to place your money in that industry than other investment types.

Real Estate Helps Communities
Your real estate investment can help communities because you are helping the local economy by giving homes or temporary places to people. When you invest in affordable homes and maintain and develop them, you can help people by giving them a comfortable shelter.

Many people cannot afford to have a house of their own because they cannot have the ability to pay even the smallest down payment. Therefore, you can help the community when you purchase 1 or 2 abandoned houses and develop them.


Conclusion
Finally, you have a better understanding of “why it is a good decision to invest in real estate.” One more advantage is that the industry is not complicated, so that anyone can try it. Purchasing and financing real estate is easy. Besides putting down money, you do not have to go through a lot to enter the industry.
Many investors do not have difficulty improving their properties, and they can also enjoy tax advantages. Therefore, an investment in real estate is becoming better and better for ordinary people.

Italy Real Estate Market: Economic Current Situation and Forecast

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The real estate business is one of the most profitable businesses around the globe. It deals with the selling, buying, and management of real estate properties. With the growth of more urban centers, the real estate business’s growth has been on the rise in the recent past. It has also been boosted by the migration of people to towns searching for jobs and other opportunities.

The outbreak of the covid-19 pandemic has affected various businesses around the world. The real estate industry has not been unaffected either. The pandemic has made most people lose their jobs and other sources of income. This situation has made it difficult for them to raise enough money for their rent and other expenses. In Italy, for example, the COVID-19 pandemic hit hard, forcing the government to lock down the country for an extended period.

This article highlights the current economic situation as well as the forecast of the real estate market in Italy. It also explains the impact of the COVID-19 pandemic on the real estate market in Italy.

Real estate market in 2021

The Central bank policy and capital flows have offered their commitment to supporting Italy’s real estate market. This strategy aims to help in creating a favorable environment for the business. Capital will more likely focus on residential sectors, alternative segments, and logistics.

Impact of the Covid-19 pandemic on the growth of the real estate market

The outbreak of the COVID-19 pandemic has made most people in Italy, and the world rethinks their lives. Recent research in the United States reveals that many people worldwide and even in Italy are now escaping from densely populated cities in search of spacious places. This trend is more likely to benefit the countryside areas in Italy and other smaller towns. The shift to live outside the cities will also lead to alternative demand.

Visits to real estate properties have undergone a significant decline following the lockdown and other strict measures imposed in the country by the government to reduce the spread of the virus. This strategy has led to an increase in property owners who want to sell their properties. On the other hand, the pandemic has posed a threat to those who want to buy homes because of the difficult times.

Why more people in Italy are now living in their own houses

Most of the people in Italy are now occupants of their own homes. A survey carried out in 2019 by Eurostat shows that various owners occupied about 72% of the total households in the country. As of 1980, only 59% of Italy’s total households were owner-occupiers.

There are various reasons for the increase in ownership of homes in Italy. Some of them include;

  1. Rise of the living standards despite the slow economic growth.
  2. A new housing demand that is destined exclusively for ownership of the home.
  3. Availability of ownership tax breaks and mortgage relief.

E-commerce and working for the future

Most people are now considering how and where they should live. They are also thinking of how they can shop as well as how they can work. This situation has accelerated the crucial changes in the real estate market before the outbreak of the coronavirus pandemic. The growth of e-commerce services has helped in transforming most of the purchasing habits.

The advancement in technology has made things simpler for most people in Italy to work from home, especially during the lockdown imposed after the pandemic outbreak. This condition has posed a severe threat to the essence of the office in the working environment. Thus, it is more likely that most offices in the city will resume depending on infrastructure and local demographics.

Resilient assets will replace the obsolete real estate assets

In a recovery process after a crisis or any pandemic, some assets prosper as others become obsolete. This notion also applies to the real estate market in Italy after the pandemic. Investors will be forced to reassess the assets’ life cycle because of the pandemic’s risks. They will also put into consideration the long-term changes such as technology, sustainability, and demographics.

Experts have said that the recovery in Italy and the world is going to be ”K-shaped”. Some of the asset classes’ incomes and values, especially in the retail and hotel sector, will decline. They will also increase for other various assets. This new reality will be enhanced by alternative assets like personal storage, medical practices, data centers, and life sciences.

Big cities and towns to continue struggling in 2021

The outbreak of the pandemic made many cities and towns in Italy lose their population. Millions of residents left their urban centers, most congested, to avoid being infected with the coronavirus. This situation outcome was to leave many cities in Italy with struggling economies, high vacancy rates, and plummeting rents.

The coming of the vaccines has brought back hope to most of the struggling cities and towns. However, it is more likely that the rents will be bouncing back very soon in the urban areas. Most people will still consider keeping safe by staying away from densely populated places such as cities until the situation will be brought back to normalcy. Most cities and towns in Italy will therefore continue to struggle in 2021.

Rental rates

Rental rates have declined since the outbreak of the pandemic. The pandemic made most people lose their jobs and other sources of income. Some residents have been evicted from their rental homes for failing to raise the required amount of money. Experts have predicted a further increase in eviction until normalcy will resume in the whole country. This means that rental investors are more likely to face a harder, challenging period in the coming months.

Experts have also predicted that rental rates will be on the increase after the pandemic. More people will require housing facilities in towns and cities hence an increase in rental rates. This state will make investors channel more resources towards the real estate market. It is thus likely that the real estate market in Italy will grow again after the pandemic.

Investors Mindset – How Investors Think | What Investors look for When Investing in Real Estate

Investor_mindset

Real Estate investing is a business to many that require critical thinking, persistent planning, and proper management.

Real estate investors, though, think differently. But they have the same and right mindset regarding what sort of real estate properties they are in pursuit of.

Below you may find some points of what you need to know about investors’ mindset, the key factors, and their importance.

  • Real Estate as potential capital gains

Investors think that the real estate business is a wealth generator. As it entails a lot of money, you are looking into a brighter future in the investment. Real Estate investments in most parts of the world are a powerful wealth-building path mainly due to the benefits you may enjoy, such as predictable cash flow, excellent returns, and diversification.  

Real Estate is said to create a significant number of millionaires. And many believe that it has always been a profitable option of investing your money.

You must look for the best properties, carefully selected ones, to achieve Real Estate investing benefits.

  • Geographical location

The location is the key element of property for profitability in Real Estate investing. It is a constant factor. You can make a lot of changes to the property, but you cannot alter its location. As an investor, you look for areas that are reasonably high in demand and supply in any event.

The investor contemplates accessibility to green spaces, scenic landscapes, and amenities. Not to mention going for investment properties in emerging neighborhoods that may maximize profits and ensuring the income to cover all costs.

  • Property Valuation

It is beneficial to look for a property’s pricing and value guide to estimate its future value. The investor can evaluate if the property is overvalued and ask for a lower price.  Most importantly, being aware of how to calculate your property’s value with the help of online tools and trained professionals prepares you to buy, sell, tap into your real estate equity or even negotiate for lower property taxes.

After that, start looking for real estate valuation approaches such as:

  • Sales comparison approach will show a current comparative market analysis.
  • Cost approach will convey tangible ideas as to the cost of the land, building costs less the depreciation values, for new construction.
  • Income approach will indicate expected cash inflows appropriate to buy and lease real estate investment.

  • Investment Goal and Scope

The investor always has a clear mind regarding their plans and perspective. The investors’ purpose is to reach financial independence, monitor liquidity, and monitor the real estate value. Mounting out specific and detailed goals corresponding to the class of property you explicitly preferred, the positive cash flow, and the location, among others.

You look out for concrete strategies that fully identify your well-thought-out intentions. To guide you on this, you may select from the variety of Real Estate investing, following:

  • Buy & Self-Use. You will have savings on rentals; there will be the benefit of self-utilization and gets value appreciation.
  • Buy & Lease. You will enjoy the regular income and long-term value appreciation. The disposition of the landlord is at stake here. It should be able to smoothly handle possible disputes and legal issues, manage the tenants, etc.
  • Short-term Buy & Sell. In most cases, the profit is quick and at a small to medium level. Properties under construction promise profit upon completion
  • Long-term Buy & Sell. Usually, there is an essential value appreciation over a long period that may cover your long-term goals like retirement, family expenses, and other significant costs.

  • Positive Cash-Inflow Expectations and other Profitable Chances

One of the key benefits of Real Estate investing is its ability to generate cash flow. This cash inflow is the ‘glue’ that keeps your investment sensible. It is the net income of your stake after deducting your mortgage payments and operating expenses. Your funds will grow over time as you exceed your outgoing costs and pay your debts. It both works for long-term residential and commercial rentals and short-term vacation rentals as well.

Investors consider other opportunities for profits from the below situations:

  • Appreciation of the property, thus increasing its value. History has proved that Real Estate properties are an excellent source of profits because of all-embracing rise in investment property value with time.
  • Buy Properties to renovate and resell. Even though this method is time-consuming and costly to invest in, it can produce huge gains because it adds value to the property itself.
  • Depreciation Benefits. Investing in Real Estate ensures significant tax advantages. This case applies to rental property owners who may use depreciation to reduce their taxable income. They will deduct from the purchase price and improvement costs in their tax returns. The depreciation is applicable once the property when it rents. Often, it eliminates income taxes, as well. Hence, it is crucial for real estate investors to know the new emerging tax laws.
  • Profits generated from business activity. Making money from real estate investments entails special services and business activities, owning an office building, for example. You may install vending machines in the property and other small income-generating businesses to augment your earnings. These will not require specialized skills. In this particular field or market, opportunities for profits can be endless.
On those notes, we may declare that investors prioritize thinking above all things. They are empowered to build a life and the future they wish by investing their money, time, skills, thoughts, hopes, and desires.  
Franklin D. Roosevelt once said that “Real Estate cannot be lost or stolen nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” 
What an inspiring quote from a famous person!

Ways to Connect with Your Audience in Real Estate

Ways to connect

The real estate business has become a profitable venture today. However, there is a lot of hard work involved to ensure that you attract more clients than your competitors. Therefore, as a real estate agency, you need to devise ways to connect with your customers.

In this era, technology has made communication, connection, and networking easier. All you need is to determine the specific technology modes that will suit your real estate business best. This article pinpointed the most effective ways to connect with your audience in your real estate venture.

Here are five ways that you can connect with your audience as a real estate professional:

  • Activating Toll-free Numbers
    The majority of the population today owns/uses a phone. Therefore, having a number that your clients can call or send messages will be an easy way to connect. However, a client may want to communicate but is unable to due to communication costs. With a toll-free line, they will reach you regardless of the amount they need to pay over their phone.

    Additionally, many more clients will connect with you if the line is reachable 24/7. All your clients will have different ventures and will be free to make calls at different times. It is thus advisable to accommodate all of them by being available whenever they need to call or text you.

  • Making Use of Social Media Platforms
    There are many social media platforms you can connect with your clients. However, you should first determine your target group. Different groups of people have diverse preferences for social media platforms. For instance, while the young generation will prefer Instagram, the older generation will prefer Facebook.

    Ensure that you are active on the social media platforms that you choose to use. Respond to the clients’ questions and messages. Also, post your various products and update them frequently to keep your audience up to date. You can cooperate with a social media manager or assign some of your staff members to run the pages.

  • Engaging Middlemen
    In addition, you can connect with your clients through a third-party company that will market your business on your behalf. Third-party companies specializing in such marketing and reaching out know how to be closer to the audience. They will earn some amount of money from the sales that happened because of their marketing channels. Therefore, your clients tend to develop confidence in these middlemen, making it easy to communicate through them.

    You can make use of the middlemen to relay helpful information about your business to your clients. You can also encourage your clients to express their concerns through the middlemen. This way, you will deliver your business objectives and get your clients’ feedback through the same medium.

  • Using Press/Print Media
    You can use press and/or electronic media to deliver your business objectives to the public. You can do so by paying airtime for an advert. Once the advert is on, you can choose the audience criteria, when, and how they can get in touch with you. Alternatively, you can pay for extra airtime where your clients can ask questions and publish their concerns to gain the opportunity to answer and earn public trust.

    Additionally, you can pay for airtime that allows you to feature on a show on a radio or TV station. You can market your business to the audience and answer their questions live.

    You can then provide your social media accounts, phone numbers, and other contacts through which prospective clients can reach you. Remember to leave your contact information with the radio/TV station for the audience who may contact them asking for the same.
  • Opening Multiple Physical Offices in Different Locations
    A physical office is essential for any business venture. It provides a place where your clients can reach you at any time. They can visit the office any time, confident that they will find you or your representative there. Furthermore, they will engage in transactions with you in the office, not worrying about being defrauded by impersonators.

    As your business grows, you can set up offices in various locations to take your services closer to all people. Remember to set up the offices in all areas where most of your target clients reside.

    This way, they will reach you faster and easier It would also help if you set up offices in remote areas with no real estate businesses going on. In this case, you will introduce the venture to the residents and serve them with no competition.
  • Conducting Roadshows
    Roadshows are a way of marketing that can connect your business with clients. During roadshows, you get to deliver your objectives and introduce your business to the audience.  Additionally, your clients are able to ask questions or make inquiries during the roadshows.

    Roadshows further provide a chance for the audience to interact with your staff members. Here, they get a personal closeness with your business, encouraging them to engage in business with you. Getting to meet you or your representatives physically gives clients the confidence to work with you. Consequently, your business will grow faster.

 

Final Thoughts
The client is the most important person in the real estate business. Therefore, a real estate agent must strive to make sure that they are always in contact with the clients. You can only do so by developing modes of communication that connect you with the clients. The article stresses some of the most common and effective ways of creating and sustaining contact with your clients.

Before choosing a specific method of connecting with your client, determine the ones you will sustain. The most sustainable methods are ones that you can easily fund without hurting your business financially. They also include ones that you and your staff find easy to use. Remember to only settle for a medium that your clients will be in an apposition to use with your troubles. 

Reasons Why Brazil is an Excellent Real Estate Investment Opportunity

Brazil

According to some studies, real estate market investment has been increased and noticed around the world. In our following discussion, we will be focusing on Brazilian properties. Various factors have led many investors to choose Brazil as their next real estate investment destination.

The rising state of Brazil’s economy and stability in politics are some of the prime factors that have led many people to decide to invest in this area. Brazil provides excellent opportunities to invest, and most of the investors are trying to get their share.

Why Brazil?

Nowadays, Brazil can boast as one of the shining stars in the region of South America in terms of investment growth. The tourism industry has hit an excellent rating, and most of the tourists are relishing their chance to visit this area.

Property prices are low compared to other regions, coinciding with a budget for many investors, both old and young. Lovely beaches and sunny days all over the year in some of Brazil’s regions make it a vacation haven for foreign tourists.

Best Regions in Brazil for Real Estate Investment

There are various flights to Bahia, Brazil, which creates domestic and overseas real estate opportunities for investors. The affordable flights and warm climates throughout the year give foreign investors a good reason to buy Brazil real estate.

The returns on your real estate investment are promising and expected to be doubled after a few years. A stable Bahia, Brazil economy, and tourism have drawn the attention of increased foreign investors from all corners of the world.

The region has impressive beaches, which are a favorite to most investors and tourists who want to have an exceptional holiday experience. As an investor, you need to get the real picture of the capital requirement and the expected returns.

What makes Brazil the best hub for real estate investment?

  • Economic prediction by experts
  • Better returns from property
  • No restrictions for foreign investors
  • A rise in demand for quality homes
  • Growing property markets
  • Brazil has an underdeveloped market
  • Affordable properties
  • The beauty of Brazilian properties


    Economic Prediction by Experts
    Economic experts have analyzed real investment in Brazil, and they have some positive news to report.

    The experts have high hopes that Brazil will emerge as one of the dominating forces in the economy and real estate investment across the world in the next decade or so. For this reason, investors have not held back in pouring their resources into this region.

    Better Returns from Property
    Investing in property here in Brazil has caught the eye of many investors who have got their returns to grow significantly over time.

    There are attractive options in real estate investment, especially in the urban areas where people are moving to seek apartments.

    A vast population is looking to move from their temporary residents to permanent houses, which have led to lucrative deals in real estate investment.

    No Restrictions for Foreign Investors
    The Brazilian government has not shied away from supporting foreign investors to invest in their country. There are no restrictions to buy a property in Brazil, whether you are a resident or non-resident. The purchasing process is smooth and easy, which pushes many investors to get the urge to invest in this area.

    For instance, the purchasing tax has some favorable options, which can be at zero percent for residents and much-reduced tax rates for non-residents. In Brazil, the only restriction in buying a property is imposed on rural areas or border points where only the residents can buy.

    The other notable bonus for buying a property in Brazil is that the sale of properties is on a freehold basis. That means the buyer will be in a position to acquire the land ownership on a hundred percent basis.

    A Rise in Demand for Quality Homes
    Many people are now planning to move their families to a much spacious house as the family gets bigger.

    Alternatively, the elderly are also looking for somewhere they can settle to have a good time during their retirement.

    Real estate investment has helped many people settle in quality homes to enjoy their lives with many comforts.

    Growing Property Markets
    Recent research has shown that it will not be long before Brazil’s current prices double.

    Many people prefer to get a space in Brazil with an endless coastline and favorable weather before a hike in prices.

    Some exciting regions are everyone’s dream to live in, and the prices are reasonably low compared to other areas of Europe.

    Brazil has an Underdeveloped Market
    There was a record of high recession in the Brazilian market for some time now, making it challenging to develop the land entirely.

    Due to the recession, there was an increase to many acres of land lying idle and underdeveloped.

    Finding a large land to invest in, in Brazil is very simple, depending on your area of selection. Foreign investors are welcomed to invest in real estate and take advantage of the land and develop fully.

    Take Advantage of Affordable Properties
    The crisis of the economy in Brazil is not ending soon. The economic situation creates a good setting for investors, both domestic and foreign, to take advantage of the real estate market and enjoy high returns.

    These crises have contributed to a cut down of Brazilian property prices considerably compared to other states.

    Here, properties are available at an affordable rate creating more opportunities for more real estate investors. Therefore, invest in the Brazilian proprieties now and enjoy your investment’s high returns for a few years to come.

    Enjoy the beauty of Brazilian Properties
    The coast section of Brazil or the Amazon area has a natural setting that every investor wishes. The beauty in this region is impressive and will always be.

    The monetary success in Brazil, like any other state, is risky, with many financial crises all over. Nevertheless, Brazilian properties’ natural beauty will always remain amazing and a favorite among many people worldwide.

Conclusion
Real estate investment can be a considerable challenge, especially when you are a newbie in that field. However, such a great opportunity in Brazil will dare investors to give it a try.

An investor’s mind is to make gainful investments that will realize some profits in the future, and Brazil has been at the forefront for consideration.

The return on investment here in Brazil has played a significant role in convincing investors to spend millions.

Real Estate Professionals: How to Stand Out From the Competition

Stand out

In today’s real estate world, standing out from the competition is getting harder.

As a real estate agent, you must constantly bring fresh and authentic innovations to your business. You must also never be afraid to use technology to reach a broader range of potential clients.

According to the data from the government’s census, only in 2017, there are more than 100 thousand real estate brokerage firms operating across the United States. The data does not include independent brokers. Based on that data, it is a fact that competition in the real estate market is getting tougher every day.

Along with the increasing number of real estate brokerage firms, investors also have more options available. Developers will always find a way to attract new customers to buy new houses with different promotion programs and benefits.

The reasons mentioned above are why doing outdated things and providing basic services will only make you fall further since the era requires new approaches, techniques, and communication mediums. Thus, it is of utmost importance to learn how to stand out in the real estate industry.

Below are some tips on how you can stand out from the competition as a real estate professional.

Use Social Media for Marketing Yourself

If you call yourself a real estate agent and do not have any social media account, pick up your phone and register your social media accounts. You can start with Twitter, Facebook, Instagram, or any other social media platform you prefer. You do not have a reason not to make one because, with just a few clicks and an active email address, you can get a new social media account for free.

With a social media account, you can get yourself connected with your current and potential clients. You can promote your properties there, and you can start building a reputation for yourself. You can create your image as the go-to real estate agent in the area who is always happy to help and ready to provide for any of your clients’ needs. And, the best part is, you can do all those things while lying in your bed!

However, when using social media, you can omit things that are not related to your real estate industry. So, it would help if you kept in mind that it is essential to position yourself carefully. Only post things that are related to your target market. Also, you will need to learn how to engage with your audience and potential customers.

Get yourself a camera and start making short videos that trigger interactions from your potential buyers. Videos like “Should I Rent or Buy a House?” or “Five Things to Consider Before Buying Your First Home” are some topics that can help you engage with your potential buyers and show that you are a helpful real estate agent as well.

You can also market yourself as a real estate agent specializing in one niche market, such as small cabins, vintage houses, or luxurious mansions. This strategy might not be applicable in every situation. If you are sure that you can perform well enough and focus on one niche market, you should try this strategy.

Provide Unmatched Client Experience

What truly makes you different from the other agents in town? The answer here is how you deliver the most satisfying services to your clients. Satisfied clients are the best way to build your reputation. They can open doors for many other potential buyers.

One way to deliver satisfying services is by listening to your clients. Always listen and understand your clients’ needs carefully. Understanding your clients do not apply only during the transaction process but also after the transaction is over. Ask your client if there is anything you can do to make your services better. This way, your clients will feel respected, and you will leave a memorable remark in their hearts.

Another way to improve the client experience is by being easily reachable. Your clients love convenience. So, being reachable and engaging with your clients at every stage is critical in establishing trust with them.

As mentioned before, social media can be an excellent tool to connect with your potential buyers. You can also use Google My Business so people can find you easily. With this feature from Google, you can show the world the properties you have sold and the happy clients you have served. Do not forget to politely ask your clients to leave a review for your business.

By providing unmatched client experience, you can have return customers or get a solid recommendation from them if their friends and family require real estate services.

Give Your Clients Realistic Promises 

One common mistake every real estate agent or even every marketing guy makes overpromising, resulting in under-delivering. Even if your clients overcame your mistake, there is a chance that they will not forget the unpleasant part of the experience.

Giving your clients unrealistic promises will only harm your reputation and damage your overall career as a real estate agent. That is why you need to learn how to manage the expectations of your clients.

Ensure you communicate regularly and clearly so that neither you nor your clients miss any important details and end up disappointed. Be entirely truthful with them and make them understand what is going on throughout the process.

By making realistic promises, you increase your chances of exceeding expectations. By prioritizing communication, you can address any of your clients’ concerns and resolve them before becoming a more significant issue.

Final Words
The real estate business is a people business, meaning that you will have to work together with your clients and many other people to make things work. Social media marketing, unmatched client experience, and realistic promises can be convenient to help you stand out in the real estate industry.

After all, making a name and building a reputation in an industry is not an instant process. If you want to be the best real estate agent, always keep an eye on the newest trends and be adaptive to any industry changes.

Real Estate Market in Australia: Why Invest?

Australia

Investing in Real Estate is the ideal step towards future earnings. Property investments may provide steady returns and capital appreciation when resale or renovation occurs.

However, you must wisely select the property’s location, building features, and potential growth before proceeding with the purchase. Therefore, it is advisable to invest in a property with potential growth and return on investment.

Being in the Asia Pacific region, Australia is a fast-growing country, and it has a high population rate.  Also, it is amongst the world’s multicultural countries, with a substantial immigration rate increase each year.  The country’s population growth rate creates an upward trend in residential property demand and forms the ideal environment for real estate property investments.

Below are some reasons why you should consider investing in the Australian property market:

  • High Population Growth
    When planning to invest in real estate, one of the points you should consider is the population growth rate. Australia has high population growth, especially in cities such as Sydney and Melbourne. Researches revealed that it is not expected a slow down in the population growth any time soon.

    Investing in these cities is an excellent opportunity for property investors who look forward to capital and rental growth continuity. Australian properties, therefore, can be classified as a long-time investment opportunity.

  • Australia is one of the Most Consistent Property Market in the World
    In the past three decades, Australia has seen a 7% return on investment per annum.
    Return on Investment consistency makes Australia the best country to invest in real estate property; therefore, investors should include it in their search options.

  • Steady Rental Yield
    Australian property market maintains a steady rental yield that makes it a great location to include in your investment portfolio plan under your long-term asset investments.

  • Foreigners can Own Freehold Properties
    Contrary to some other countries, Australia does not deny the ownership of freehold properties to foreigners. As a foreigner, you have the chance of owning a property in Australia as the locals do. An investment in Australian property will definitely offer high returns in the long run.  

  • Resistance to Downward Trends
    Over the years, the Australian property market has shown the ability to resist downward trends. If you invest in the Australian real estate market, you will be confident of holding on to your investment for a long time. Having low volatility, the Australian property market has proven to be the best investment plan compared to other property markets in the World.

  • Australia is a Perfect Place to Live
    Australia boasts of its multicultural cities and natural beauties that trap most people’s impressions internationally. Its conducive living environment supports migration, which raises its population.

    With the increasing number of migration and population, respectively, Australia’s property prices continue to rise with time. Therefore, investors have an assurance of investment growth by investing in Australian property.

  • Minimal Instability
    Australia has minimal instability as far as political, social, and economic aspects are concerned. That said, growth in the country is evident, and you have no worries as you invest in its properties.

  • No Restricted Laws for foreigners in Australia
    Most countries impose restrictive laws that discourage foreign investors. Other countries have banking regulations that discourage foreign investors. However, Australia does not have such restrictive laws, and investing there is considered easy comparing to other countries.

  • Government Approval is Easy for Foreign Investors
    The Australian government has a straightforward legislative framework concerning foreign investments in properties. With the payment of some additional taxes as a foreign property investor, you acquire government approval.

    As a foreign investor, you can enjoy tax deductions by professional accountants’ consultation in Australia. Your submission to the Australian property authorities will be approved within 30 days, which helps you execute your investment plan faster.

  • Overseas Investors are Familiar with the Australian Legal System
    Most foreign investors understand the Australian legal system since it is based on the UK common law system. As an investor, you will have an easy time investing in Australian properties as much as you understand its legal system.

  • Strong Consumer Protection
    Australian legislation offers strong and effective consumer protection. The National Consumer Credit Protection Act 2009 ensures that Australian consumers are protected, creating a conducive property investment environment.

  • Existence of Specialist Mortgage Brokers
    You will find specialist mortgage brokers in Australia who will help you qualify for a foreign mortgage. You will thus have a stress-free experience investing in Australian properties with the professional mortgage brokers’ help.

  • No Need of Setting up a company
    Most countries will only allow you to invest as a foreigner after you set up a company there. In other cases, you must buy a property with a citizen to become an investor in that country. However, in Australia, you can invest solely without setting up a company or buying a property with an Australian citizen.

  • Consistent Capital Growth
    Over the last decade, Australian property has registered consistent capital growth. Property prices double approximately every 7 to 10 years. That gives confidence to any property investor who wishes to invest in Australian property.

  • No Speculations from Foreign Investors
    Most overseas markets suffer significant crashes due to speculations from foreign investors. That results in a drop in housing prices, which leads to foreign investors incurring huge losses. Such scenarios are unheard of in Australia since most housing markets here are owner-occupied when investors in other countries are experiencing a crisis, property prices in Australia increase.

Conclusion
Australia has a high demand for rental properties due to its strategic location and its conduciveness to living. The increased demand for rental properties means an increase in rental rates. Therefore, foreign investors have a great opportunity to invest in Australian properties and enjoy capital appreciation and a healthy cash flow.

You have every reason to trust the Australian property market for your next investment plan. However, when planning to invest in Australian Real Estate Market, consider factors such as past growth trends and location before deciding where to invest.

Virtual Real Estate: How technology is changing the industry

Virtual Real Estate

Virtual Technology is the future trend in real estate. Incorporating virtual tours into the real estate industry not only saves time and resources for both the agents and the customers but also promotes a natural feeling of the real estate project. Real Estate virtual presentations allow two-way communication between the agent and customer through a computer environment.

Virtual presentations enable realtors to showcase their real estate properties to customers without any physical contact.

Our era requires real estate professionals to embrace virtual presentations and tours of their real estate projects using technology.  

How Virtual Tours Applies in Real Estate?
To understand how virtual tours work, you need to understand what a virtual tour is and what is its unique feature.

Virtual tours are specially designed to showcase with great detail the fixture and fittings of a property.  This type of representation provides the potential home buyers a detailed tour of the property they intend to acquire without leaving their homes’ comfort.

Realtors use virtual tours to reach even broader markets, thanks to the internet’s non-boundary adherence. Potential buyers who seek to acquire or move to another property find it very easy to access the property’s features and location by utilizing virtual tours.  

Virtual tour creates a real-dimensional presentation of the property interior, location, and view.  Real estate professionals can showcase their available properties to clients in their home’s comfort on a 24/7 basis.

In addition, virtual tour presentations overcome the time shortage problem that a buyer may have when needing to visit all properties physically.   Today, buyers can use virtual tour presentations to shortlist and even compare properties and see only the selected property.

The traditional method of visiting all properties that appeared attractive was very time-consuming and hectic.

Virtual tours in the real estate industry provide an avenue for virtual representation of properties. Now, the available properties are listed on the company website and several real estate platforms. Moreover, virtual tours can help clients form an emotional connection with the property they interact with and help them have a real feeling before coming to a decision.

Real estate agents can also market properties that are still under construction using 3D virtual presentations, all thanks to architectural renderings. With this visual presentation type, clients can get an immersive experience of an incomplete property through 3D rendering and earn knowledge on how the property will be after completion. Before discovering 3D virtual real estate representation of projects, property marketing was a challenging task.

Why is the Need for Visual Representation of a property so important?
Like every other new technological advancement, real estate professionals need to embrace virtual tours into their businesses.

Virtual Tours Importance

  1. Saves Time and Money
    Virtual real estate technology allows clients to visit multiple properties at the comfort of their homes within a matter of minutes. All they need is to visit a real estate company website or a real estate platform and familiarize themselves with what properties are available.

    There would be no need to visit all the properties physically but only the chosen ones, consequently saving a lot of time for both the real estate agent and the client.

    Virtual tours allow real estate professionals to market more properties within a shorter time than traditional marketing techniques. This type of marketing is also much cheaper considering that you can reach a large number of clients.

    Initially, real estate companies had to set up large exhibition spaces of the property that they had on offer. This promotion was costly and time-consuming. Nowadays, there is no need for all of it, thanks to the existence of virtual tour technology.

  2. Global reach
    Since the whole virtual tour infrastructure is digitally presented on the internet, real estate agents can reach clients halfway across the world. Realtors can work with more clients and respond to inquiries more productively. Virtual tours can be offered to clients who live overseas, making all the property hunting endeavors very easy. 

  3. Instant Sense of Belongingness
    Giving clients an immersive virtual tour reduces the hassle of convincing them to rent or buy a property. With virtual presentation real estate, professionals can provide clients with different property views and create an instant sense of belongingness.

  4. Improved Customer Experience
    During a virtual tour of the property, a prospective client understands how the property’s fixtures and fittings work. The virtual tour to the tenant improves the customer experience. It cuts down on inquiry calls to the real estate agent or the landlord by tenants.

The Future of Virtual Real Estate Technology
Virtual tours in real estate are promising to take center stage in the sector. Virtual tours have unprecedented advantages that help real estate professionals successfully promote their projects to a large audience globally in a cost-saving way. Besides, nowadays, there are many simple programs that real estate professionals can use to create an appealing presentation of their projects.

Already there are many real estate companies and agents that use virtual tours as one of their primary promotional tools. Without a doubt, until the end of 2021, all the other companies would follow.

 

Final Words
Currently, with everything going on around the world lately, virtual tours are significantly helping the industry stay afloat. Although it is a unique technology, it has more benefits than drawbacks, so real estate agents must learn how to adapt to remain competitive in the industry.

Top-ranked Cities in Africa for Real Estate Investment

africa

Investing in real estate never disappoints since it is an immovable property that you may explore as the years go by. Immovable property is an asset in your portfolio that you can upgrade at any time through renovation and new additions.

But growing your income will highly depend on the place and location you choose to invest. Africa remains the top continent for increasing your real estate investment since it is classified as an emerging market. Many global investors invest in Africa and take advantage of the upcoming opportunities.

The most recent findings indicate that Africa still leads with more than 70 percent of China’s international investors. Other countries are following the same direction, i.e., Russia, Turkey, and India. With the alarming growth rate in urban cities, Africa is continuing to pave the way for better opportunities than any other continent. How Africa is lately developing has led to high demand for quality and safe housing, challenging the African government.

There are significant signs of economic growth in real estate currently and in some years to come. We have done thorough research, and here are the various cities in Africa that are recording a significant growth rate.


Nairobi City, Kenya
Nairobi is not an exception when recording Africa’s largest economy. The capital town is in the third category for its faster-growing economy globally and on Africa’s eastern coast. Besides, the city is well-known for its improved infrastructure, especially the road system. With the busy streets across the town, investing in a real estate venture will yield increasing income now, and according to forecast, it will double in the future.

Most big African companies such as Google, Coca-Cola, and IBM have made Nairobi their headquarters. The acknowledgment from those big international companies has contributed to the rise in population, making it hard for the city to meet the housing demand. Also, the tourism sector is robust, resulting in a growing demand for big hotels and guest hubs.

Despite the rapid terrorist attacks experienced some years back, retail tenants’ decline has now turned to a gold rush. Today, it is time to take advantage of the incredible setting in the city and invest.


Accra city, Ghana
Ghana is among the most stable states in Africa in political matters. This political stability contributes to fewer internal conflicts and good relationships with the neighboring states. Keeping this in mind, investing in real estate has gone an extra mile to include domestic and international investors.

The capital city of Ghana is Accra.  Accra has a high population growth. Currently, there is a shortfall of about 100,000 units to meet the housing demand of 150,000 residential units every year. This residential shortage means that affordable residential housing in Accra is still a challenge.

The excellent setting and governmental laws in Accra city allow foreign investors to own property. This city is ideal for investment due to its increasingly urban population looking for employment and rentals.


Luanda city in Angola
Global investors must consider the city of Luanda for investment. Being the capital city of Angola, it is ranked fifth for its growing economy. Even with the recent construction of new units, there is still a shortfall in housing units. The shortage of housing units has resulted in a rise in demand for both residential and commercial properties.

The Luanda port area has increased the demand for commercial units, especially those connected with the oil company. An increase in warehouse space to cope with the high demand and business growth is still expected. Despite a fall in oil prices, the oil industry remains the primary income source for domestic real estate investors. Also, the rise of office space rates has attracted a significant number of global investors per month.

In addition, a few products are locally made, raising the demand for most commodities. Allowing foreign real estate investments is expected to change the market’s entire conditions since locals can produce agricultural products and other products domestically. If locals can produce more products, they will later decrease food commodities rates reaching the Luanda market.


Kigali city, Rwanda
The capital city of Rwanda is Kigali. Kigali is top-ranked in matters of size due to the increasing rate of the urban population. Rwanda is among the nations with an increased demand for residential and commercial properties due to the developing business community. However, Kigali alone cannot meet the housing demands of over four hundred thousand units by 2022.

According to the forecast, with the increasing domestic and international real estate investments, the demand for residential and commercial properties is expected to double. This potential increase is quite encouraging, bearing in mind that the Rwandan Genocide resulted in a standstill in the growth of the annual gross domestic product.

The growing population has led to an increase in both low and medium-rated housing units. Additionally, population growth has also increased government infrastructure development, hence increase the number of overseas investors.


Lagos City, Nigeria
Lagos city has remained the most densely populated city in Nigeria and ranked second in size across the African continent. The town is in fourth place for its growing economy brought by the content’s most prominent and busiest seaports.

The most recent findings show Nigeria has the most extensive gross domestic product (GDP) in Africa. The economy in Nigeria is growing faster than any investor across the globe could imagine. The IMF estimations five years ago show that Nigeria is ranked sixth with a rapidly growing economy.

With Lagos being the biggest city in Nigeria, its population is also not left behind in terms of growth. Lately, Lagos is recording a tremendous population growth rate compared to the other cities in Africa. The development in Nigeria and the population growth have increased demand for highly valued and medium-rated residential and commercial properties.


Conclusion
The cities mentioned above have already shown a tremendous increase in commercial and residential demand.  Therefore, Africa is an open call for investors that focus on high returns.