Archive for March, 2010
Mar
31
Can I do a 1031 exchange with money from the sale of a long-term lease?
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I have a long-term lease on a large commercial building. I’d like to sell this lease and re-invest the money in the purchase of an investment property. Do I qualify for a 1031 exchange in this case?
Repossession
Mar
31
Lucknow is growing city in India. A lot of banks are expanding their ATM networks in Lucknow. I have a shop in one of the new markets of Lucknow. I would like to rent it out to a bank to open an ATM there. This will hopefully provide a safe and hassle-free source of income to my family. How should I go about it? Who are the people I need to contact in the banks? Can anyone give me some leads? Which banks are my best bet?
Sell and Rent Back
Mar
31
I called a new set of shops that opened in my area and asked what they offer in price ranges. I am new to this and do not know the right questions to ask. I was told a 2400 square foot shop is 14$ per square foot. Do you think that meant per year or what?
Quick Property Sale
Mar
30
is it stupid to go in to the mortgage industry now?
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I am giving my notice to a very secure job tomorrow, in the commercial lending industry. I really like working in mortgage financing and did it for two years previous to this job. I want to jump back in, but don’t know if I’m making a mistake, what do you think?
Quick Property Sale
Mar
30
How much does plumbing cost to start a Yogurt shop?
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I am starting a Yogurt Shop like Pinkberry. I am planning to lease a 800 sq ft space. The space was a previously a office, a rectangular layout. It does have a bathroom in the back, what would be the rough amount of cost to get the adequate plumbing in there?
Quick House Sale
Mar
30
Do you pay stamp duty on a new shop lease?
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We are about to sign a new seven year lease on a business we have had for 34 years,the landlords agent has told us we will have to pay stamp duty,is this correct.How will they calculate the amount payable if in 3 years there will be a rent review.
Passive Income
Mar
29
The Property Market in Portugal
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This is www.buypropertyportugal.com ’s next chapter of how to buy a property in Portugal, here we focus on the Algarve as it’s currently one of the most attractive places to invest and to enjoy investment growth while enjoying the sunshine on the beach
The Property Market
Why not choose to base yourself in an area with over 3000 hours of sunshine each year and give yourself the quality of life you deserve?
Portugal is an attractive location for house buyers, with the Algarve being the most popular area for British buyers, mainly due to the weather, golden beaches, and the abundance of golf courses. It is Portugal’s busiest, most developed region and it is reported that 90 percent of all property sales to foreign buyers are in the Algarve.
The age of Internet and ADSL means that mobility of labour is very much a reality and it is easily possible to maintain instant contact with colleagues anywhere in the world. Satellite TV means access to English language television and VOIP systems give you a U.K. telephone number and U.K. calls at low rates.
There are excellent air connections to anywhere in Europe and intercontinentally from Faro or Lisbon airports, making it perfectly possible to base yourself in Portugal and ‘commute’ back to the U.K. Many of the ‘budget’ airlines fly into Faro from Stanstead, Luton, Bristol, Gatwick, Heathrow, East Midlands, Dublin or Manchester and offer excellent value charter fares. Additional routes come on stream during the summer months.
Where to Buy
The Portuguese property market is showing consistent growth, strong rental demand, relative living costs and safe environment.
There is a wide choice of great properties in wonderful locations and often less expensive than the equivalent in France or Spain.
Remember that the summer months in the Algarve, especially August, are very busy in terms of traffic and there are visitors from the north of Portugal and from Spain as well as holidaymakers from all over Europe, all expecting good access to the beach. Unless you enjoy being part of the crowd you may appreciate being a little removed from the bustle. Being just a few kilometers inland can have considerable benefit.
Don’t forget to take into account your proposed usage of the property, if you are expecting to live in Portugal permanently then the factors that affect your decision on what to purchase will vary from those required if you are planning to rent the property out for part of the year.
Many properties inland or ‘up in the hills’ do not have mains water or drainage. Instead they rely on a system of cisternas (tanks) to collect rainwater and store water brought in by or pumped from a ‘furo’ (a bore-hole), whilst a ‘fossa’ or sceptic tank contains and treats sewage waste.
All of these facilities are reliable and capable of many years of unattended operation. Bear in mind if you plan to re-plant the garden, water can be at a premium in the summer months and a new garden may require a bore-hole to be drilled to obtain the necessary extra water needed for irrigation.
Drilling companies charge per metre for drilling and then the cost of the pump, control equipment and electrical installation must be added.
At Exclusive Algarve Villas, we try our hardest to give you the latest and most up to date information on the Portugal property market and costs.
Please feel free to question our consultants about anything to do with buying and investing in Portugal, in person, via email at info@eavillas.com or on the telephone (+351) 282 353 019
Portugal remains an exclusive location, with fewer of the ‘over development’ problems of some of its neighbours. The opportunity to buy quality property in a great location remains excellent but, like all good things in life, availability can’t last. Portugal is slowly but surely being ‘discovered’ and if you’re going to do it, now could be the perfect time to step in to this beautiful country!
Portugal is an utterly charming country and relatively speaking still overlooked by second-homebuyers.
Many areas have an exclusive feel and second-homebuyers and investors are waking up to the advantages of buying in a country which has not suffered the mass development of other parts of Europe, which is quick and easy to get to, and where the cost of living is still relatively cheap.
The Portuguese market is very active, with purchasers from across Europe. There are plenty of Dutch, French, Spanish and Scandinavians buying, as well as the British. This means that to buy your dream property, quick and decisive action is often required. New developments are selling particularly quickly at the moment and many properties are sold from plans.
Quick House Sale
Mar
28
The Effect of the Global Downturn on Property Sales in Crete
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It has been a strange year for property sales in the lovely island of Crete – egged on by the “panic media” many people who had already set their hearts on living in a mild climate with the chance to pay low heating and lighting charges, enjoy organic vegetables and a laid back, kinder lifestyle than that in the UK allowed themselves originally to opt out of purchasing their dream property surrounded by sandy beaches, blue skies and endless mountains and greenery. After initial looks they went back to the UK and decided to put it off. As the year progressed and the Government managed to give us more and more mismanagement and gloomy news the same people returned to try and buy the properties they had viewed and liked, only to find they had been snapped up by a braver person.
Northern Europeans are still buying property in Crete, Crete still offers the same temptations it offered before the credit crunch in fact in some ways even more despite the weakness of the Pound against the Euro because what is on offer in Crete is unobtainable in UK right now. Cretian properties at realistic prices, sun, sea, sand, clean air and many entertainments for free and a laid back, café society of friendly people. Good hospitals – free – with no queues in A and E – gorgeous locally grown foods – many hours of daylight and sunlight, and most of all space and cleanliness and a very very low crime rate.
Another aspect of living abroad has now come onto the horizon – our present government is borrowing so much money that future tax payers will have to pay the cost of this. As EU citizens living in any EU country it is possible to choose where you pay your tax, so many people buying and living in Crete in the future are likely to opt for the Greek tax system to avoid paying the high taxes sure to come along either as Direct or “cloaked” taxes within a very few years.
The kind of person wanting to buy property in Crete has reverted to the kind of buyers in the early nineties, that is people who love Crete, we are no longer getting the investors who thought they saw a chance of making a quick buck by buying off plan and selling on at a profit, clients buying now are stretching themselves to buy the house of their dreams in so far as they can afford it and taking into account good bus services, good facilities, accessibility to airport (for visiting friends) and nearness to beaches.
There is a lot of interested from the Scandinavian countries like Finland and the French people – normally only interested in renting – are also quite strong in the market.
As we draw towards the end of 2008 nothing has changed essentially in Crete. Certainly there are no prolific sales going on, but the fact remains that people living in the UK are finding it an attractive idea to move to an EU country where the climate is kind, the sandy beaches are relatively empty and the quality of life is still very high.
Some feel confident that 2009 will see a complete turn around in sales and that many people completely at odds with the Government of the British Isles, the lack of quality of life, and the high crime rate will turn their attention to a lifestyle with family values, good climate and a low crime rate. There are still many people who want to make their home on an island in the sun.
Sell and Rent Back
Mar
27
how much will my credit score go down if i turn in a commercial lease?
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I have a small company that has a commercial lease on a $90,000 straight truck. The semi has not been on the road for over 6 months and I can’t afford the $1800 monthly payment. What happens if I turn the vehicle back in. Currently it is registered to the company but I am the personal guarantor on the note.
Repossession
Mar
26
Commercial Mortgage Training – Sales
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One question all people in sales, regardless if they’re in the commercial mortgage business or not is, “should I work on this project?” Perhaps though, this question is all the more important for commercial mortgage brokers due to the complexity and time that is required to be put into each individual deal.
Implied by this question are a few other questions, like “do I have any control over the borrower?” Or “does the borrower have any loyalty to me or is he just rate shopping and or verifying what his “guy” is already telling him. Is this a doable deal? Do I know where to place the loan? And assuming I know where to place the loan, are the rates and fees competitive with that bank?”
So again, “do I want to work on this loan or pass?” If your borrower has very little loyalty and you don’t know the particulars of the niche you are probably not going to win that deal. What you will get is some “training” or as one of my prior bosses said, “practice”. If you’re in a similar position as mine, you’ve had enough practice and only want to get paid for your hard work.
The flip side of this is perhaps you know the niche cold and you know the best banks in the country for that deal; you may not be that concerned if the borrower has any loyalty to you or not because you know you’re going to produce the best offer and as a result will be in a very strong position to win the business. However, even if you have this confidence, be aware that you may still want to protect yourself and your time with a commercial broker agreement.
Exclusive or non exclusive agreement? Many traditional commercial mortgage brokers have their borrower sign an exclusive agreement, which among many items says that the borrower agrees to work with the broker on an exclusive arrangement. What this boils down to is that the broker will get paid regardless of where the borrower decides to close his loan. Think of it as a listing agreement for commercial real estate brokers. The borrower commits himself to work with one broker who in turn will be that much more motivated to do a thorough and complete job on the loan request.
As far as the sales perspective with this, if you don’t know the niche that well, or you do know it’s going to be a difficult deal to get done, you should seriously consider having the borrower sign your exclusive fee agreement to protect your time, resources and self respect. If your borrower is not agreeable to the document, it’s advised to walk from the deal.
The reality that you work on the loan request for months and produce several term sheets all for your borrower to end the relationship with “thanks Joe (you) for all of your hard work. I know you put in a solid effort and I plan on recommending you to my friends. But xyz bank came in with a better term sheet, so we’re going with them.” After a few more questions you discover that the other deal is only .1% lower than yours and you’re out thousands of dollars and two months over 10 basis points.
“Should I work on the deal or pass” is a one of the most important questions we can ask ourselves. And in my humble in opinion is what separates the really successful commercial mortgage brokers from the mediocre one. Think of it this way, if you knew from the beginning of the loan request that it is an unfundable deal and or that your borrower was just shopping you, you would never work on it. Right?! And that is an essence the whole point of the question.
Repossession
