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8 Things to Consider When Choosing a Strata Manager

Our insider tips to the questions you should be asking your prospective Strata Manager.

Good or bad, most people judge an entire strata agency on the working relationship they have with their strata manager.

We have prepared this short list of questions that you should be asking prior to making a decision to appoint a new Strata Agent.

How many buildings does your proposed new Strata Manager already look after

Your entire strata experience depends on this simple question. Most agents manage large portfolios, to the point where they can spend most of their time putting out spot fires rather than giving you the proactive service that you are looking for.

What’s included in the monthly management fee

Most agencies charge a monthly management fee which covers agreed services. Works performed outside of the agreed services are charged as an additional fee. You can negotiate with an agency to have fixed price disbursements to give you a clearer understanding of how much your scheme will be paying per year.

Qualifications

The Strata Manager that will be managing your building should at least hold a Certificate 4 in Strata Title Management. Ideally this would have been gained through a Tafe course. It is possible to get a Certificate 4 in Strata Management by paying to do a 2 week course. It is also a good idea to ask how long they have been with the agency.

Experience

When approaching a potential new agent, it’s a fair question to ask how much experience the strata manager has that will actually be managing your building and in case things do go wrong, how much experience they have in attending mediation and tribunal hearings.

Reporting

How often are financial reports generated and are they delivered just the treasurer to the entire committee? Ideally this will be available on a monthly basis.

Service Level Agreements

Strata management is customer service. Your new agent should be able to provide you with time frames of when your requests will be actioned, emails replied to and telephone calls returned.

Your money, your input

It’s your building and you don’t necessarily want the Strata Manager to do everything, so it’s important to clarify how much input will you have in approving creditor payments and what level of input will the committee have when the agent is preparing the proposed budget.

Agreement terms

When appointing a new agent, most will try to lock you in for the maximum period of 3 years. If the services doesn’t meet your expectations you are locked in for the term of the agreement, unless your scheme decides to pay out the remaining term of the agreement. It is a better option to sign a one year agreement and see how things go.

Is Real Estate a Good Investment?

For the first time investors many people confuse get whether to make investment in real estate or not. Generally, real estate is a great investment option as it is beneficial in both times. Real estate investment can generate an enduring inert income as well as it can prove to be a good long-term investment if its value increases exponentially over time. If you are beginning to build wealth you may even use real estate investment as a part of your overall strategy!

Still, investors need to be sure that they are ready to begin investing in real estate. For the beginners you will need to put down a significant amount of money upfront to start the real estate investment. You have to know that buying a home, piece of land or apartment complex can be expensive and that’s not to mention the ongoing maintenance costs. For this you will be responsible for as well as the potential for income gaps if you are between tenants for a time. We will help you to know about investing in real estate and if it’s the right choice for you!

PAT WITH CASH: Most of the financial experts warn against borrowing money to purchase investments. You must have to consider this before you purchase a piece of investment real estate. But for any reason if you are not in position to pay cash for the home, at the very least, you should be able to afford the mortgage payments, even without renters. If you can’t afford the mortgage without renters, it may end up being more of a burden, rather than a means of building wealth but on the other hand if you are unable to pay the loan, it could end up damaging your credit which will cost you money in the long run.

PLAN OUT ALL OF YOUR EXPENSES BEFORE YOU BUY THE PROPERTY: You need to consider the cost of utilities, taxes, upkeep and repairs when purchasing real estate as an investment. Going through a rental company is lot easier, let them handle things like repairs and rent collection. Although this will cost money but it will help ease the burden of owning a rental property. Especially if you don’t have a time to do everything that needs to be done at your property, using an agency is a good option.

RESEARCH THE PROPERTY CAREFULLY: You need to search the land thoroughly if you are purchasing land because you plan to sell at a later date. Search properly whether any roads are planned close to the land you buy and consider how that will affect the property value. Moreover, make sure that there isn’t a lien on the property. Once you have done your research you should be able to make the right decision about purchasing it for investment.

START SMALL: Some of the real estate investors begin by buying a house with a basement apartment or a duplex, then living in one unit and renting out the other. This is a great way to get your feet wet, but keep in mind that you will be living in the same building as your renters. After finalizing your budget, you will want to make sure you can cover the entire mortgage and still live comfortably without the additional rent payments coming in. when you become more comfortable with being a landlord and managing your investment property then you may consider buying a larger property with more income potential.

The Best Investment Property

Many everyone is not asking this question thinking how not isn’t best time for you to invest. Instead, just put all your money on your bottom line and allow it to gain interest-even though this means earning a pittance monthly. Well, no less than the bulk of your cash remains safe and secure. But this isn’t correct way of thinking. I’m not saying it’s pointless in order to save; but I think it is still easier to start investing, in particular when using a realtor means improving the economy get back on track.

For instance, the Federal Deposit Insurance Corporation (FDIC) reported that this 1st Pacific Bank of California located in San Diego closed. It had around $335.8 million in assets leading to $291.2 in deposits. So many banks are closing right now and even when they will have insurance, such as the 1st Pacific Bank of California, this just demonstrates that even the safe act of depositing your hard earned money in banks still entails some risk.

What I’m trying to say is that if you take risks while earning beside nothing, it will be safer to start asking the question products investment property to purchase and exactly what is the best spot to acquire investment property. Might as well earn big if you are going to have a risk, sounds about right don’t you think? So now, I answer the question of the’s the best investment property now that most people are developing a difficult time and banks are certainly not easily providing loans.

Please take not that this fact is depending on in-depth research, plenty of asking around, and firsthand experience. You can also verify each of the facts I’m giving to you personally here. You can try searching the web and I’m sure you will find a great deal of credible sources which will validate my claim.

So from then on disclaimer, permit me to go to let you know what I’ve discovered about buying commercial properties. Although you may get deterred when you read about commercial investments, thinking “Oh I don’t possess that kind of money” or “I don’t know much about business to enter commercial property;” well, all I can say is that I was as you before. These were also my concern. Until I found out until this sector of economic real estate has suprisingly low risks, low development and operating costs as well as the most crucial coming from all is the fact that banks trust this sector. And so, although you may don’t have that much money, there exists a greater chance that the loan will likely be approved!

Now, since I seemed to be a newbie-everybody will become a newbie before they become an expert or before they achieve success inside a certain files, right?-and up to now I have been doing good (so good that I’ve even did start to expand my company), I can say that with the determination to learn, you can flourish in this, too. This is not a get-rich-quick scheme since it would take a lot of efforts to get to where I am now. But, the most crucial thing is the fact that it’s not only a viable investment, but one that has a 92% potential for success.

What I’m discussing here is self storage investment. It has been virtually untouched with the recession because the demand keeps rising independent of the economic environment of the country. As people commence to downsize, the interest in self storage facilities even skyrocketed-not to mention the numerous baby boomers retiring that are getting into smaller and much more convenient places. Banks find it irresistible since it only has an 8% loan from the bank failure rate, which is the lowest in commercial real estate. What’s more is it only has a 67% occupancy rate to destroy even. There are no tenants, no broken whatever constantly should be fixed-just some locks, steel doors and loads of stuff in storage!