As with any investment, real estate has several categories to evaluate prior to making the best choice for your plans. In some cases the categories are broken down further, thus it is important to evaluate your goals, and your skills alongside the options available to find the best real estate investment fit for your budget.
Real estate investment begins by a simple and obvious division, commercial and residential. With each side there are specific guidelines to justify their function, and value in real estate. Once you are aware of the kind of investment you want to make, you can learn what each sub-category is for the respective options.
If you are considering residential real estate, then the next obvious division comes with single family vs multifamily units. A single family home is independent of all others, and as the name indicates, only one family can reside in it. A multifamily unit indicates that more than one family will reside in portions of the building. Often these are apartments, condos or duplexes. They do not have yards and the leasing or sales agreements vary only slightly.
In commercial real estate the next category varies a bit more. These properties can range from office buildings in specifically designed clusters or parks to manufacturing sites that require adaptation from lessor to lessor. The difference between these and a residential option is the regulations and taxes associated with each end. With regard to commercial real estate, zoning rules also apply.
Under unique situations there is the option to own both residential property and commercial property. In this case, the mixed use development has unique zoning laws that apply. This will require a clear understanding of the laws and tax regulations associated there with. Talk to your real estate agent or broker for details on the area and where to find the regulations associated with this unique form of real estate investment.
As real estate is often the most stable investment you can make, long term considerations and consulting with the right team is crucial. Finding the right real estate agent such as Joe Cline, will enable your real estate investment venture to be built on a solid foundation.
Downtown Austin thrives with incredible growth and opportunity. With the growth and development there comes constant conflict. The downtown historical locations are being lost by all of the development. At this time, not one building in downtown Austin has been submitted for historical protection or landmark status. Also perplexing, none of the local or national historic registers has listed the area, in whole or in part, as a place of value. One example of a future development that should concern local Austin historians is the recent permit obtained by what will become the Gables Republic Park, a 16 story apartment community. The demolition permit is intended to partially tear down the 1913 Nabisco warehouse. For the last fifteen years the location housed the Ginger Man company.
The local Preserve District Council has put forward some ideas and proposals to save at least part of Downtown Austin. The tools of the proposal made by the ROMA Design Group and HR & A advisers have created a significant and active debate among property owners and local groups like the Heritage Society of Austin and the Downtown Austin New Alliance. Also chiming in actively is the Central Texas Chapter of the Congress for the New Urbanism, the Downtown Austin Neighborhood Association and the city of Austin’s design and planning commissions. ROMA’s recommendations were then presented in public on July 23. Until now, this issue is in hot debate, as many of the supporters of the concept do not support the specific idea’s laid out here: www.cityofaustin.org/downtown It will be debated and discussed in council again on the 24th. Members will provide policy direction and a vote may occur to direct a draft of the density bonus and applicable ordinances with specific warehouse district rules.
There will be much debate on how to balance historic preservation while still allowing for development to progress as needed. Before the council votes on the measure, and before they determine exactly what tools will be used, the community will need to voice their opinion. The public meeting will be held Sept 24th
At no time will your qualified real estate agent make an offer on your behalf until you have named the price you want to offer. Before making any offer you should take the time to investigate some of the information below prior to settling on a price for offer. Your real estate agent will help you through the investigation process.
Below is a list of factors to consider as part of your investigation:
* Determine the local market
* Investigate how much the seller paid
If the seller purchased the house recently in the depressed market, your purchase price should hover near it.
* Learn what the seller’s balance is for their mortgage
This will allow your offer to consider if this is a short sale. Short sales often have a minimum to the offer they will accept. You will need to be aware of this.
* Examine Comparable home’s sold
This includes homes that are near or in the same neighborhood with similar layout, square footage, and age.
* Analyze List-Price to Sale-Price Ratio locally
This will inform you of the range the seller may be willing to operate within. Trends are often very clear and your real estate agent can provide you with a report reflecting this information.
* Check Square Foot Cost Average
This article shows you how: How to Calculate Residential Square Footage
* Get a home history report and a Days on Market Report (DOM)
An important part of this process is to keep in mind this is a business transaction until your offer for purchase has been accepted. This fact in mind, have a counter offer and several other options in mind when you make the offer to begin with. This will make certain you will find the right house at the right price for you. Depend on your Real Estate Expert for this process and you won’t go wrong.
With every job you get, you have gone through an interview process; this should be no different for the real estate professional that you work with. This should apply to all contractors you select regardless of the work intended or designed for. Below is a short list of questions you should ask every real estate agent you meet or consider.
- How long have you been an agent?
- Can you and will you provide references?
- What is your strategy for marketing my home?
- How are you different from other local real estate agents?
- Do you object to my review of all documents prior to signing?
- Are you able to assist me in locating other professionals associated with the process?
- What percentage do you charge?
- What are your guarantees?
- Is there anything else you feel you need to inform me of?
Do not hesitate to take notes while you are interviewing the agent or agents you have in mind. This will help you keep track of who provided what information and details. Also, make a note of who made you feel most comfortable while talking to them. It is crucial that you know you will be able to contact your agent about any question you might have, anytime that is comfortable for you, not just during office hours. You should also know that your real estate agent will be actively working on your behalf. This interview process will enlighten both you and your options as to expectations from and to you about your agent.
In every business and industry there is a concern for deceitful behavior. Real Estate is not an exception to this, unfortunately. Should you encounter something that concerns you, the best place to start is the Federal Trade Commission site. The site can provide critical information that can protect you and help you steer clear of hidden snares used by unscrupulous real estate investors, or to simply clarify contract misnomers.
When focusing on the purchase of an investment property, there is no shame in nit-picking for clarity in every section of your contract. Typically this is a very large investment. Contracts tend to have terminology that we do not use on a daily basis. A slight misnomer in a contract can make a huge impact on whether or not you will be making a good investment or an expensive blunder. Make sure to contact your real estate agent or attorney to answer any questions and provide any options that may be available to you, before making any commitments.
Taking a logical pragmatic approach to making your investment is vital to making your investment a good one. There are common downfalls to resisting this pragmatic approach. The most common downfall is fixating on the “perfect property”. Once you put yourself in that position, you lose perspective on the fundamental issues that must be addressed. In addition, you may overlook or simply ignore problems or imperfections in the property or contract. It is essential for negotiations to stay focused.
Making an investment in the right property and making sure you understand the contract, can be tricky, but following a few worthy tips and consulting with a trusted real estate agency or attorney are highly recommended.
