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June 2017

House Investment

Advantages of House Investment Over Land Investment

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Investing in property is one of the major areas of investment today, with more and more people involved in buying as well as selling the same. Property investment can be broadly divided into two categories, namely house investment and land investment. Both types of investment have similar risks but different advantages and disadvantages. While there is no wrong type of investment with respect to property, it is always advisable to understand the pros and cons of these two main categories before actually putting your money into any of these.

It is pertinent to note that in both types of investment, namely house and land investment, liquidity can be a problem, at least initially. However, in the long run, it is obvious that both types of investment yield profits. While experts believe that land is a low risk investment as compared to all others, house investment has more advantages when compared to land investment. Firstly, the amount of money that you need to put down to get a mortgage loan for house investment is far less than land investment. In other words, down payment is more when it is land than when it is house, making it easy for people to invest in homes.

Secondly, selling your house property is easier than land investment. This is because you have more people looking for house properties as compared to those who are interested in buying land. So, if you are in the real estate business, making money through flipping is easy and requires lesser investment when it is a house property than in the case of land. With regard to land investment, flipping for a good profit is often difficult unless you have built something on it or improved it. This means that the investor has to not only invest in the land but also invest into creating something, which can then be sold for a profit.

Another major advantage of house investment is that you can let it out to tenants for a monthly rent unlike land investment. Houses or rental properties are a great way for people in the real estate business to make steady income with absolutely low risk. Of course, it is imperative to include cost of repairs, taxes as well as mortgage payments before you calculate profits from the rental properties. While the profit yielding process might be slow and small in the beginning, the biggest advantage is that it brings a steady cash flow, which will gradually increase after you repay your entire mortgage payment. Moreover, it is immediate cash flow, which is not the case with a land investment, where you have to build before you can rent out or make profit from rents.

While it is true that in rental properties or houses, you might have to make some minor repairs or renovate before you let it out, in normal practices, this is not as extensive as constructing a new building or home on a piece of land. Therefore, the time required for such repairs or renovation is minimal, often ensuring that you start earning profits or returns from your investment, almost immediately.

 

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Luxury Homes

Marketing Luxury Homes in the Age of the Internet

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Selling real estate is a competitive business. It is also one in which there is both tremendous risk and high earning potential. That is especially true in the case of high-end luxury properties.

Real Estate Professionals Market Luxury Homes

For real estate professionals, marketing luxury homes requires different strategies than selling more typical homes and properties. When trying to sell a half-million dollar home, and ad in the local Sunday newspaper is not the most effective approach to take.

How to Distinguish a Luxury Home

The luxury home market is usually defined, depending on the local market, as the top 10% of homes listed by asking price or homes listed above $500,000. Something that makes luxury home sales different from others is that each property often requires its own marketing plan. Another difference is that the buyer is more likely to be from out-of-town or state, often more than 500 miles from the location of the property.

Luxury Property Market

Another common challenge in selling luxury properties is that many of them are highly customized to the needs, wants and tastes of the current owners. Unusual and special features make a home unique but to many buyers, these homes would appear to require extensive renovating to make them more suitable for them.

Traditional Marketing for Luxury Property

Placing ads in newspapers, local real estate guides, and running open houses is not the most practical approach to reach potential buyers of these homes. These tried and true techniques of selling homes often do not reach people genuinely interested in purchasing high-end luxury properties. Rather, they often attract people who are described as interior decorating tourists or just those curious about what’s inside these stunning homes.

Reach Luxury Home Buyers on the Web

The Internet has opened up better avenues for reaching buyers interested in luxury homes in markets across the country and around the globe. Listing a luxury home online can extend a real estate agent or broker’s reach by hundreds or thousands of miles instantly.

List a Luxury Property Easily

In addition to multiple listing services (MLS), the Internet is also home to a variety of sites offering other ways of listing real estate for sale. There are listing sites that sell nearly everything imaginable and others that are exclusive to homes and property.

With the ability to include detailed description of a luxury home and its amenities as well as photos and, sometimes, virtual tours or at least a link to drive traffic to an external site for more information, these sites are very economical to a real estate agent’s advertising and marketing budget. Some offer free listings or charge a nominal fee while others charge more for deluxe features.

Websites Where Luxury Property Can be Listed

Craigslist.org is one example. Anyone can list almost anything, including real estate, largely for free. Craigslist.org is a collection of some 30 million online classified ads in 450 markets in all 50 US states, and over 50 countries. With billions of page views each month, craigslist.org is one of the most visited English language sites.

There are sites that are more specific to buying and selling real estate. One example is houselist.com. This site has different levels of listing from free to several hundred dollars annually. Each level includes more selling features for an unlimited number of listings. Like craigslist.org, houselist.com is searchable by state and city or by country.

Another option is to use an auction site. eBay is probably the best known of these online companies. Listing expenses are generally linked to the value of the item for sale. There are nominal insertion fees for posting the item on the site. When the item is sold, additional fees are applied amounting to a percentage of the value of the sale.

HighEndCrazy.com Sells the Luxury Home to a Discriminating Market

There are also websites that cater to more discerning buyers who are looking for luxury items and homes. An example of these is HighEndCrazy. The advantage of a site like HighEndCrazy. is that it attracts people in the buying demographic would are most likely to be interested in purchasing a luxury property as their primary residence or as a second home. Thus, a seller is more likely to become a potential buyer.

When developing a marketing campaign for a luxury property, consider listing it online. The Internet is an ever-growing and changing wealth of advertising and networking opportunities that should not be overlooked. It is the latest twist on the “six degrees of separation” that many real estate agents and brokers rely on, especially when selling high-end luxury properties.

 

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