The Best Kind Of Real Estate To Invest In: Houses or Units

When buying a unit pay attention to the market as many cities have oversupply issues, which means that people buying off the plan could, in fact, overpay for a property that may decrease in value.

But buying off the plan isn’t always a negative as this can mean that buyers can claim depreciation and pay lower stamp duty.

Apartments in small blocks of units are more sought after than apartments in larger blocks as they often have a better feel to them.

Houses will increase in value compared to units, as houses are built on land owned by the owner, whereas the unit owner has a strata title but does not own the land. Inner city suburban land regularly sees increases in value, due to it’s closeness to the city and amenities.

A good idea for real estate investors is to buy an old property or a block of land and build an apartment block on the land and either sell it or lease the apartments out to renters and build a property portfolio.

Flipping residential properties is another option available to investors that want to invest in renovating properties and then sell them for a profit. Old houses or units with cheaper fittings are good candidates for this as many buyers become enthusiastic about properties with modern kitchens and bathrooms.

The Best Kind Of Real Estate To Invest In: Location, Location, Location

You might find a property bargain but if you are going to sell the property at a later date, families look for properties in a good location for all members of the family. First, properties must be adequately serviced by shops, restaurants, and services. Next, families look for properties that are within travelling distance for their children to go to school. And it must be an established suburb that is serviced by tradesmen to service appliances and utilities.

The Best Kind Of Real Estate To Invest In: A Property That The Market Is Buying

Buying a mansion instead of a family home is not good business sense, as only a small section of the community will be in the market for this type of property. Take into account what the median price is for a property similar to the one you are inspecting, and aim to pay close to this price to ensure you don’t overpay.

The Best Kind Of Real Estate To Invest In: Protect Your Interests

Don’t buy property in your own name otherwise if you get sued, you personally will get sued. It is better to set up a company or Limited Liability Company (LLC). It is even better to set up a company for each property in your portfolio as if one property has problems, the rest of your portfolio stays intact. If they sue your company you have more options in handling legal matters or your company can file for bankruptcy without incurring a major headache.

Entering into the real estate market it is a good idea to build a portfolio of properties and set up legal structures to safeguard your property portfolio. As commercial real estate properties are a harder investment vehicle to master, the best kind of real estate to invest in are residential properties.

Major Differences Between Conveyancer and Solicitor

In the real estate industry, there are different professionals involved in any transaction. Some of these professional might look similar in the roles they play, but this is not the case. Each and every expert involved is unique from the other according to the specific jobs they play and how they work. One of the common questions most people ask is the difference between a solicitor and conveyancer. Here are the major differences between the two.

Areas of specialization

A conveyancer is an expert who specialises is law related to real estate property referred as conveyancing. A conveyancer must have more than two years of supervised real experience in conveyancing before making application for a license. On the other hand, a solicitor has the ability to practice in different areas of law including transactions that require their presence in court and conveyancing.

Education levels

They should have undertaken two years tertiary level education in real property law. A solicitor usually undertakes study for six months in areas related to real estate property law as they pursue their law degree. Conveyancing is not compulsory for solicitors, so one can opt to study it or not. Once a solicitor gets admitted to practice law, there is no practical conveyancing training that is needed.

Costs of the services

The cost of services offered by a conveyancer is low compared to what is charged by a solicitor. They usually charge a fixed fee for their services. On the other hand, a solicitor is more expensive compared to a conveyancer. They prefer charging hourly rates instead of a fixed fee and this is what makes them more costly. The fees charged by solicitor is higher because they can offer more services and have the ability to handle more complex issues related to property law.

Training required

In real sense a conveyancer must have undertake one year diploma and one more year of practical training. To be allowed to offer their services, they should also have professional indemnity insurance. Those who are not solicitors are usually limited on what advisory services they can offer. There are some real estate law complexities that can only be handled and resolved by a solicitor and not a conveyancer. This is one of the major reasons why their pricing is a bit low.

To work as a solicitor one should possess a law degree from a university that takes a duration of four years. The study course should include one and a half years to two years of law related to property such as trust law, contract law, tax, family law, wills and other areas required to represent the interest of the client. They can offer you different kinds of services and even help you handle some complex matters. This is what makes them charge higher fees for their services.

Bottom line

It is worth noting the above differences in order to understand whether to hire a solicitor or a conveyancer. You need to be attentive in order to make an informed choice in the process.