For investors looking to explore foreign real estate, some of the best opportunities are south of the border in vibrant Latin America. The market looks very poised to pick as Latin American governments implement programs to attract foreign investment and increase their economic growth potential.
Investors can also take advantage of the growing number of available resources to find and buy real estate in Latin American countries, with Argentina being one of the top destinations. According to Argentine real estate trading group Camara Inmobiliaria Argentina, house prices have increased 50% since 2002. Even though real estate prices have soared, they still look very cheap.
The results for renting apartments in Buenos Aires are great! You can expect to buy an apartment in Buenos Aires and achieve a net return of 7% to 8% annually. Better than low bank interest rates, which will make life difficult for those forced to live on 0% to 3% interest on ‘safe’ cash investments while the world spins counterclockwise out of control.
Even when our property sector at home is at its knees, it’s strange to feel so close to saturation and our aspirations to buy cheap properties, renovate, and rent out properties are hampered by cost and of course competition. Even in the buyer’s market, our money-rich European and US counterparts and property investment specialists find only one or three projects each year. Buenos Aires is still the ‘new world’ for property investment and remains one of the most desirable and affordable cities to buy real estate in, even in the most exclusive neighborhoods of Recoleta and Palermo.
Real estate transactions are mainly in cash. That means meeting somewhere safe and counting piles of banknotes before pushing them across the counter to the seller. Then, the other party counted the money. Therefore, easy credit and excessive leverage did not form the basis of the Argentine real estate boom.
In other words, it’s almost bubble-proof. The country as a whole operates without credit (10% national average). Residential property investments are mostly cash, mortgages as we know them don’t exist, and funding is never more than 50% of the value of the property backed by assets and in terms as short as 3 to 15 years.
Tourism in Argentina has grown by more than 52% from 2003-2007. Government agencies forecast 47% growth over the next 6 years. With the financial stability of the market and the future growth prospects of the country, investing in real estate in Argentina can be a great opportunity now.
Do you want to make sure you have enough money saved up for when you retire? Not sure that how you’re investing now will provide you with a comfortable and enjoyable retirement? Then you should learn more about buying real estate within an IRA account- it can really add a lot to your retirement account’s bottom line. This article will discuss why you should open an IRA for real estate investment and the 5 steps it takes to make huge profits with real estate.
When buying real estate within an IRA account, you need to hold your money in a self directed IRA account. A self directed IRA has a few benefits:
*You have sole control over what goes on within your account
*You have a much larger array of investments to choose from (like real estate) besides your everyday common securities
*You get to choose what you want to invest in!
Sadly, less than 4% of all IRA owners self direct their accounts. Most people are afraid of self directed their investments, thinking that it will take too much time, effort, and learning to do it all correctly. But, if you spend some quality time in the beginning learning about how buying real estate within an IRA account works, then it’s not nearly as
difficult as you may think.
Here is a quick overview of how using an IRA for real estate investment works:
1. Locate the right custodians to help manage your account and convert your IRA or rollover your current retirement vehicle into a self directed IRA. Usually, you will not have to pay any fees for doing this.
2. Establish a company- specifically, a Limited Liability Company (or LLC). This LLC is created inside your self directed IRA.
3. Locate the right real estate deal- one that can be purchased well below the current market rate.
4. Make all necessary repairs and renovations to the property and make sure it’s in a livable condition. Note that all expenses involved with this whole process must come out of your IRA account.
5. Locate a potential buyer for the property or find tenants that would like to rent it out.
After you either find a buyer or a tenant, understand that all the cash flow that comes out of your investment must go right back into your self directed IRA. So you can’t make use of any of the profits now, but all the profits you make with your investment are tax free.
THE BAD NEWS:
Alright, I’m going to be completely honest with you. You should not go at buying real estate within an IRA account all alone. If you did, you would have to learn all about IRA real estate investing, setting up an LLC, finding the right deals to invest in that can get you a substantial profit (including all taxes and fees that go along with real estate investing), hiring someone to repair and renovate the property, and finding qualified buyers you can trust not to default on the deal.
Now THAT sounds like too much work, am I right?
THE GOOD NEWS:
There are programs out there that help people use an IRA for real estate investment with nearly no effort on their part. I know of one in particular, which provides it’s clients with a “hands-off” approach to buying real estate within an IRA account.
How would you like to work with a knowledgeable and well-established company with plenty of investing experience that would hold your hand and walk you through the whole process of buying real estate within an IRA account?
How would you feel if this company would set you up with the right custodian, establish an LLC inside your account, find you the best deals to invest in, arrange to make all necessary repairs and renovations to the property, and even find you qualified buyers to take the property off your hands?
Why do borrowers want short sale home? They are extremely cheap. It is the cost advantage that attracts the borrowers towards buying these selling homes. Generally you can get a short sale home at 30% cheaper prices as compared to market price.First point is the time element: You will have to close the deal within 30 days.Are you having a sound economic condition? Can you really close the deal within 30 days? Think seriously about this point. Once you accept this type of deal there is no going back and not completing deal will involve good amount of loss. The first main tip for buying a home at short sale is making sure that you can really close the deal within 30 days.What is the meaning of a short sale? Sellers property is mortgaged to a lender.Lender has agreed to release the mortgage at discounted price. Even if the seller accepts your price, the lender may not accept your price. So the point is two different parties must accept your offer. Seller will have to be in default if his property is to be on a “short sale” list. Suppose that the seller owes more than the current price of the home. In that case there is no possibility of lender accepting fewer prices as compared to the market price.You will have to check public record. Your agent will have to find out relevant info like, who is in title, whether foreclosure notice has been filled or not and most important of all, how much is owed by lenders. If there are two lenders, your problems become more complicated. Both lenders have to come at a compromise point. Suppose first lender owe $150,000 and second lender owes $30,000. And you offer $150,000 price. Now if all money goes to first lender, then second lender will get nothing. He will not agree to that. How much first lender is ready to give to second lender will determine final compromise formula. This is certainly not easy to achieve.You must hire an agent experienced in this specific type of home buying. Everything has to be completed in a particular time deadline. You can not afford to miss any important detail in this whole procedure. You can close the home deal in a timely manner with help of your agent. So getting help of experienced agent is second important buying a short sale home tip.You have to reserve the right to conduct inspections. There will be commission negotiations as lender is not interested in paying and seller has no money. You will have to submit documentation and purchase offer to the lender and also give him deadline for acceptance.These are buying a short sale home tips.