Why invest in Real Estate Reason 4 - Real Estate is easy to finance

in #realestate6 years ago

P1020138.JPGReal Estate is easy to finance
Banks (and also non-bank lending institutions) are structured for residential property loans and often have a choice of loan products available to suit different investment styles in residential properties. They cater to individual purchases as well as portfolios and improvements to properties.

Because residential real estate is relatively non volatile and also does not depend on the skillset of the owner to increase it’s value, banks will consider it a safer risk and will lend up to 95% of the property’s value and usually at lower interest rates compared to commercial real estate or business loans. Also unlike business loans (where the business owner is the risk more than the actual business), no business plans, predictions, budgets, balance sheets, profit and loss statements, marketing or growth strategies are required to get a loan for residential real estate.

Anyone with an income and who can demonstrate affordability in paying back the loan, and with some equity or savings (for the other 5% - 10%), can get a loan for residential investment property. This is evidenced by the fact that there are more property investors in Australia than other asset classes, many businesses which have developed around servicing property investors, and a rapidly growing market of investment properties available for rent. Most of the housing available for rent in Australia is privately owned by investors with complete systems and explicit legislation in place for servicing those investments, the landlords and the tenants. This book is about these systems and legislation concerning the leasing of these investment properties.

About Xenia and ALEXA Real Estate
alexa .jpg
Xenia is the Principal and CEO of Alexa Real Estate www.alexarealestate.com.au. Xenia developed alexa real estate from concept in 2006 and it has now expanded to a rent roll of over 300 properties and 10 staff members and the company enjoys massive growth every year due to a strong focus on specialisation and solving difficult, specialised property management problems

See Xenia’s real estate blog here: http://blog.alexarealestate.com.au/

Xenia is also an entrepreneur, has developed several businesses in the areas of real estate and self development and is married with 3 children. Xenia loves to share her passion through writing and has written books on in the areas of millionaire mindset, emotional resilience and human consciousness. She has appeared as a keynote speaker on many stages around Australia and overseas including sharing a stage with Bob Proctor at a wealth creation conference in Europe.

Xenia’s books:
Don’t believe everything you think or feel: https://www.amazon.com/Dont-Believe-Everything-THINK-Feel/dp/1507594895

Your Inner Journey to Wealth:
https://www.angusrobertson.com.au/books/your-inner-journey-to-wealth-xenia-ioannou/p/9781456854294?gclid=EAIaIQobChMI3oeky-qN2gIVGiUrCh0l1woWEAYYASABEgLaLfD_BwE

Prior to discovering her gift in developing businesses Xenia was a medical research scientist obtaining a PhD from Flinders medical centre followed by a 3 year post doctoral fellowship at the university of Saskatchewan, Vaccine and Infectious Disease Organisation in Canada. During her post doctoral years Xenia published 8 medical research papers in top medical journals and travelled around Canada and the USA speaking at scientific conferences about her, now patented, vaccines and research.

Other social media pages:
FB: https://www.facebook.com/xenia.ioannou.33
LinkedIn: https://www.linkedin.com/in/xenia-ioannou-290898143/
Twitter: https://twitter.com/XeniaIoannou
Blog: http://blog.alexarealestate.com.au/
Property management information brochure:
http://alexarealestate.com.au/marketing-material/property-management-brochure.pdf

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I ja e always wanted to delve into real estate here in the US but have never felt the time was right. Do you have any tips for taking the leap and getting into rental properties @xeniaioannou for the novice beginner?

Hi stwbll, the first one is always the most difficult. My only tip is to get very educated, there are a lot of great podcasts, youtube videos, books and courses. Read a lot of conflicting view points on the subject so that you can learn to form your own opinion and not rely on following a path - there isn't one. Finally it's a matter of really good money habits, a saving plan to start off with and ensuring that you have secured stable income because you need that to save a deposit and getting a loan. Buying is easy, developing the discipline and mindset in the background is the more difficult bit. All the best and thank you for your comments.

Thanks for the reply @xeniaioannou. I’ll hit the books!

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