Inexpensive Investment Property.

While the Fed is keeping interest rates historically low,opportunities abound for the real estate investor. Housing is more affordable  than ever and the prices seem to have only one way to go-up.Bank loan rates are affordable and property prices are low,which is the perfect storm for a savvy investor. Like investing in stocks or bonds,research is critical. You need to decide first if you want to manage your real estate investment , pay a management firm or fix up and sell your real estate quickly.

If you are first-time investor, it is wise to stay with residential real estate and avoid competing with big time commercial property investors.Just plan to start small and work your way up- a first time huge investment can drag you down quickly if you are not able to add additional financing after the initial round.Don't knock yourself out trying to pay off the property upfront, because now you can get an attractive interest rate allowing you to save part of your investment funds for those unexpected costs that always rear their ugly head when you least expect it.Plus,as inflation rises your investment will be a great hedge against rising prices.

Take the time to scout the area.Look for schools nearby shopping centers, grocery stores , quiet neighborhoods. Then look for the bad qualities such as people loitering on corners, trash on the street, disabled autos, burglar bars on most properties and vacant homes or empty buildings.The qualities don't offset each other-if you see any of the bad qualities, drive away quickly.

Lastly, don't try to do everything yourself. Find 5 reputable agents that know that area you want to invest in then meet with each of them,possibly taking a tour of the area, while evaluating their expertise . Tell them your bottom line and don't be convinced otherwise.If anyone tries to tell you that you can afford more than your set budget or that a more expensive deal is too good to pass up, then they are not looking out for your best interests.When you find the right person, you'll know and this just might start a long-term relationship that will make you a truly savvy investor finding the best bargains on the market.


___________________________________________________________

Bio :
Paul Toller has worked in the real estate market for over 20 years, as an investor,real estate consultant and real estate property management software expert.Paul currently works as a consultant at http://www.TenantFile.com , a firm that specializes in property management software.

Top five home renovating tips

With rising interest rates and the jump in housing prices, it's not looking like an ideal time to move house by anyone's standards. But tht doesn't meant that you can't live somewhere new — it's just a matter of improving your current address until it feels like a different house.
Yes, we're talking renovating. Anything from slapping on some new tiles in the bathroom, to a second-floor extension.

Of course, there are good renovations, there are bad renovations and there is just plain over-capitalisation (putting way too much cash into the wrong kind of 'improvements' on a property that just won't net you any return).

But how do you tell the difference?

We asked Rose-Marie Hillier, Interior Design Editor of House & Garden magazine, and Alex May, author of Planning Your Perfect Home Renovation (Allen & Unwin, $26.95) for their expert advice.

First up, the best places to put your money.

Are kitchen and bathroom renovations still top of the list for adding value to your home?

Alex May: "No! While it's true that potential buyers judge the quality of a house by the kitchen and bathroom, it doesn't necessarily mean you will renovate those rooms and see a return. Plenty of buyers will pay the same amount of money for a house with no renovations to the kitchen and bathroom with the idea of renovating to their own tastes."

Rose-Marie Hillier: "I think people look at bathrooms more than kitchens these days. It's important to do it properly, however. Don't make them too cutting-edge or gimmicky. Substituting inferior finishes is also a mistake."

Okay then, if it's not automatically the kitchen and bathroom, what should I be looking at renovating to impress buyers?

RH: "It's important to look at trends in home use and plan accordingly. For me, a quality renovated home now would have a flexible space — a room that will complement any potential owner's lifestyle. For instance, a media room, home office, guest room, teenager's retreat, a deck, a parents' retreat, an indoor/outdoor connection and a quality kitchen and bathroom.

AM: "Property markets are highly segmented according to suburb, city and the style of property. The trick is to research which renovations work well in your local area. In leafy garden suburbs, an open-plan family room with bi-fold doors to a deck will be in demand. In the inner city, it might be off-street parking. In general, light, airy renovations work. Don't slavishly follow new trends — plenty of agents are reporting that the minimalist, warehouse white kitchens that were so big five years ago have lost their appeal in the market."

What can I do to improve a place quickly?

AM: "Paint, paint and more paint. But only bother if you prepare well. And wash the exterior of the house — it makes it look like new."

RH: "Reorganising the furniture and changing the light fittings can make a huge difference."

Top five tips for improving your home


Let there be light
Whether you exchange windows for French doors (subject to council approval) or add skylights, light is vital in a welcoming home.


Keep it simple
There's no need to utilise every trend and tricky finish available.


Call in the experts
Paint colours can be difficult to get right. Colour consultants are available to help and can give your home the kind of fresh, new look that may have you falling in love with it all over again. Companies such as Wattyl (www.wattyl.com.au) and Dulux (www.dulux.com.au) can help you find a consultant.


Do it right
Don't assume that a cheap job won't show. "Go for quality fixtures and fittings in bathrooms and kitchens. If your budget won't stretch, then stick to the mid-range — never choose the cheapest taps, benches or handles," says Alex.


Plan twice, renovate once
Jumping in to a renovation is a mistake. "People spend money replacing things they abhor (like the daggy old laundry) rather than rooms that will really improve the value of the house," says Alex. "Failing to plan and work out what you really want also means you tend to overspend."

See www.renovationplanning.com.au for more advice from Alex May.

DIY renovating tips (part 3)

4. Layout and Sketch
Get good drawings done.
The more detailed the drawing the easier it will be to build. Consider drawing up a rough sketch yourself to show an architect or builder. If you don't use an architect and your renovation is sizable, consider using a draftsperson to draw up plans.

Avoid small boxy rooms.

Open plan design costs less than a series of rooms, creates a sense of space, and is better for ventilation.

Changing the configuration costs money

Keep as much of the original configuration of your house because changing it usually means new plumbing, electrics and possibly alteration to wall construction, windows and doors. Sometimes it's possible to swap the kitchen and bathroom around with out much cost because the plumbing is not radically changed.

5. Architects and plans
Consider an architect

If your renovation is major, use an architect, and one that is experienced with the style and level of renovation you desire.

View images or their previous work.

Talk to their previous clients.

Suss them out. Can you form a constructive, working relationship with them? While they are the expert, you are the user. Will they be too precious about changes to their proposals.

Make sure you can read plans.

6. Budget and Resale
How much to spend?

How much to spend depends on how long you want to keep the house. No point in spending a huge amount if you are going to sell it within a couple of years.
Set an affordable budget. If on a restrictive budget, spend the money where the water is ie kitchen and bathroom.

Allow 10% for contingencies.

The simpler the house the less expensive.

Every corner in walls and roofs cost more money, likewise every door and window.
Custom made, name brands or imported items will costs a lot more than local off the shelf

Don't compare costs too much
Costs increase each year- what your friends paid 2 years ago is unfortunately no longer relevant .

Break down costs
Break down costs, right to the fitting and fixtures- so you know where the money is going.

7. Legals
Check your contract

Understand every aspect of the building contract.

Consider having a penalty clause for late work

Consider having a clause on how to deal with disputes (via independent arbitration)

Check the schedule of payments. A builder cannot charge more than what is in the contract (unless you agree.)

Consider having a solicitor check out the building contract.

All works approved by council will be inspected by the 'Certifying aurthority' (council or a private certifier) - inspections are paid for by the property owner at the council application stage and are manditory at various stages during constrcution but if you feel you need the opinion of a professional during these regular inspection you can engage a private certifier/inspector for reasurance

Don't sign a contract until plans and specifications have been completed (and if applicable, approved).

Holding back payments

Make sure there are holdbacks in the contract and ensure the last builders payment is a large amount and not paid till all work is complete otherwise it is difficult to get the builder back to finish off those last little items. Include a hold back in the payment to builder or critical trades where the quality of the work is not 100% immediately evident and especially trades that are associated with water entry ( eg tiling, roofing, windows).

Incomplete work, incorrect or substandard work

Don't pay for a building stage unless it is complete.
If you believe work is sub standard, discuss it immediately with the builder or contractor. If no action is forthcoming, maybe get a 2nd opinion, take photographs, send the contractor a registered letter advising him of the complaint and contact the relevant building regulation authority.
Council Permits and Caveats
• Council permits

You will require a permit if you change the footprint of the house, change the position of exterior windows and doors, make structural changes, or alter the roof line. Permits are also required if you change the plumbing diagram or you are altering load bearing walls. However if you move the plumbing slightly within a room, a permit can be avoided if no extra toilets are required. (Often a kitchen and bathroom can be swapped around with minimal change to the plumbing diagram.)

• Caveats

If your house is old or was part of an estate check with your solicitor on caveats that might prevent you from expanding your existing structure.

Insurance
Any building work worth more than $12,000 requires home warranty insurance.
Home Warranty protects the owner (either the original or subsequent owners) against
Non completion of the building contract due to death, disappearance or insolvency of the builder, and failure of the builder to correct faults, (which are deemed by law to be the builder's responsibility for a nominated warranty period.)

Construction and Public Liability Insurance is a must for owner-builders.

DIY, Builders and Trades
DIY, or use a Builder?
Do you have the time, skill and inclination for DIY or DIWT (Do It With Trades). If not, get a builder.

Selecting a builder and tradesperson
This can be a difficult task because many tradespeople, perhaps because their skills are in high demand, do not see the need to act professionally (for example: by calling you when they are running late). They often operate on their own time and many have absolutely no awareness of neighbours and the environment (and will often leave their mess for you to clean up). Some will get upset if you criticize their work, rather than try to correct their mistake or explain why they have done the work a certain way. So... given that there are professional tradespeople out there, and that you do have some choice:

Check references. If a tradesperson doesn't want to give you a reference, don't use him or her. Either they are no good or too precious. When checking previous work, ask the previous client:

were they happy with the work?

was it on time and on budget?

did the contractor clean up?

did the contractor accept suggestions or criticism?

Don't necessarily take the lowest bid from a builder or contractor. If a quote is well below the others it could mean the contractor is cutting corners.

Always have a 2nd choice for contractors.

Make tradespeople contact you if they cannot turn up. If they don't, fire them and use your 2nd choice.

Establish ground rules if necessary on smoking, music and rubbish (e.g., who cleans up and where rubbish will be stacked).

If your tradesperson is working on an hourly basis, ask them if they come with an apprentice, because you will have to pay for them too.

Working hours

Be clear on timelines - for when and how long they will be working.
Be clear on their daily working hours and start time which must never be before 7 am (unless you live far away and have NO neighbours)

Keep communication going

Be clear with your builder about the lines of communication with him and their trades people. Advise them of the level of information that you require regarding what is happening

Specify position of underground services as written on original plumbing and electrical diagrams

Find out if the driveway will be kept clear, and when the power and water will be off?

Organization

Keep records

Keep an expandable folder with individual folders inside for each category of work
Log decisions from phone calls and meetings.

Take photographs, especially of plumbing while it is exposed
Scheduling

If DIY or DIWT, work out the building schedule ie the order of which all building is done and check it with the tradespeople.

Make sure your materials and fittings are requested in time for the trade that needs them, but early otherwise they may take up room and slow down work. Or if they are laying around too long, they might just, wel... disappear (ie get stolen.)

Ensure the order of trades is correct and that they complete their work at the agreed time (ie in time for the next trade).

Understand the building process or the trade by observing and reading up on their particular work.

Try to stick with first choices- changes cost time and money
Inspections

Set up building inspection at the correct time for architects and council inspectors (eg Council Plumbing Inspectors for basic and final plumbing.)

Electrical

Think very carefully about furniture layout so outlets they are conveniently placed yet hidden as much as possible.

Mark the positions for the electricity outlets and media jacks on the wall.
If the house is 60 years old insurance companies may require rewiring.

Painting


Hire a colour consultant if you are not competent at selecting harmonious colours
Make sure the surface (especially timber and render) is well prepared.
Use premium paints and ensure that correct paints are used for exterior, weather affected areas.

Save some paint for touch ups.
Flooring

Make sure the structure is strong and stable enough for a new floor, especially if laying over on old one. You may have to restump (adding galvanized white ant protectors).

Windows

Avoid natural or white aluminium windows. They make the house look cheap and signal no style.

Retain door and window position where possible: It saves money and may avoid getting a council permit.

Consider cleaning: Some windows have removable sections for access for cleaning the outside. A narrow balcony under windows can provide access for cleaning.


Roof
• Does it just need a clean?

If the roof is sound, cleaning it with hi pressure water spray or repainting may be all that's needed.

• Do you have sufficient ventilation and heat dispersal?

For flat roofs with little space for insulation, consider a double roof with a layer of air in between. For gabled roofs, insulation plus a rotating air vent is very effective.

• Use anti leaf fouling guttering when building amongst trees.

Safety
Don't go up on wet roofs.
Control children on a building site.
Use eye, ear and face protection when necessary.
Don't use unfamiliar power tools.
Renovating can be an extremely satisfying undertaking - you get to appreciate and be proud of your own effort and creative decisions. However the renovation, be it DIY or by an experienced builder, will usually not go completely smoothly. There is likely to be some unexpected difficulty that will frustrate the daylights out of you. But you will eventually deal with it and move on, to the next step. That's the nature of renovation.

DIY renovating tips (part 2)

3. Design and Style

Keep renovations in character

Consider the architectural integrity of your building. If partially renovating, keep the style similar, or in character with the original house (including the car port and garage.)

Don't be excessively trendy or ambitious.

Fads fade, but a simple elegant style in neutral colours (and subtle patterns) is timeless.

Don't be too ambitious unless you are loaded.

Use colour carefully and thoughtfully.

Collect samples and play with combinations. Only use three colours in a room, two if the room is small.

Light colours will not go out of fashion (or fancy) as fast as strong colours. If you want to use a strong colour, use it in small areas, as punctuation, so if necessary it can be easily changed.

Period and older style homes are hard to cost control
Best get a fixed price from a builder.

Think how you can maximize space or the sense of space.

No matter how much space you have, you are likely to want more. Prioritize your space requirements for each room.

The less corners, lines and intersecting surfaces, the greater the visual flow and the more pleasing and less expensive it will be.

Try and keep as much of the floor visible by raising cupboards off it.

Give great consideration to the front exterior.

The exterior presents the first statement about you and your home.

Put your money in the right places

Put your money firstly where the water is (kitchen and bathroom), then living and master bedroom.

Higher ceiling looks better.

Higher ceilings will cost a little more you will recoup that in resale value. Paint them the lightest colour possible so they look even higher.

Consider the resale value of the property after building.

Don't over capitalize ie spend more money that you will get back when you sell. Make sure the total value of your house plus new building is not greater than the value of the smartest house in the street.

Only renovate if the basic structure is sound.

If you have to repair the basic structure it is likely that your project will be too expensive and you will overcapitalize. Either reduce your plans significantly or sell and build a bigger house elsewhere.

Consider your future requirements.

Think how your proposals will fit into your present and future lifestyle . Will everybody be able to negotiate stairs? Will you need more car space later? Will extra rooms be required for children?

Consider ventilation and air flow.
Open living spaces are cooler than boxy rooms. If possible try and design the floor plan so that you can see right through the house, from one end to the other.

Try to stick with first choices
Any changes you make during the building process will cost you more money.

DIY renovating tips (part 1)

Renovating your house can be a personally and financially rewarding undertaking however is often fraught with frustration and stress. Depending on your time, skill, inclination and budget you may like to DIY. Most DIY renovators are actually DIWT (Do It With Trades). They manage the job, do the demolition, select the colour scheme, source fixtures and fittings, remove and install simple fittings and other simple jobs. However, unless they are really skilled they contract the specialist trades of bricklaying, carpentry, electrics, plumbing and tiling. The following are some general tips that may help to make the process a little easier for you.

Note: Before you get too enthusiastic we recommend you read our Overcapitilising with renovations article.

1. Preparation
Move out of home unless it is a very small job. The renovation will be dirty, dusty noisy. The power and water will go off and when it doesn't you'll have tradesman scrutinizing your breakfast and observing your bathroom habits.

Keep neighbours on your side. This is an impossible task but do what you can by informing them of noise and inconvenience. To pacify them, consider giving them gifts at appropriate times (like earplugs, champagne and a night in a hotel.) If they get really stroppy, just tell them how your renovation will increase their property value.

2. Research
Find out all you can about everything
Troll the internet for advice and researching materials, appliances and fittings. Print out pictures of appliances so you can see how they look. Study home magazines.
Start a neat file of fittings, appliances and design examples that you like.
Draw up a wish list.
Get the household together and discuss the building. Together draw up a wish list in order of preference.
Get advice. Ask architects or builders to look at your site and sketch to give you a ballpark estimate.

How To Save Money On Your Home Remodeling Supplies

You've got a budget, and you've got a plan for your home remodeling project. What about your home remodeling supplies. Where are you going to get them? How much will they cost. What's the best way to purchase home remodeling supplies. Home remodeling supply can make or break your planed remodeling budget. Here are a few tips to make things a little easier for you:

Research Your Requirements

Before you start the home remodeling project do your research on everything you will need and want and most importantly the source from where you will get the needed supply. There are so many options, and contrary to what you might think, the "big box" stores aren't always the best.

Now, depending on the remodeling you have in mind, if it is a big job and you are planning to hire an architect, interior decorator or builder; or if it is a relatively small job and you will be doing it yourself, you will need supplies.

If you hire a contactor you need to specify clearly who will get the home remodeling supply. Sometimes contractors will supply the materials and if that is the case you also need to go through the cost and the type of supply that will be used. Specify everything clearly in detail; failing to do so will came back later to bite you when faced with supply quality or quantity issues. This will further bring additional costs, frustration and stress.

If you are in charge of providing the home remodeling supply you still have a lot of work to do; before you go to the store make a list with exactly what to need for each project. There are two reasons for this:

1. You will save money buying in bulk
2. You will save time not having to run two times for the same materials.

Planning Home Remodeling Supply

Planning is perhaps your most critical step. Without a good plan, you're doomed to pay far more than you can imagine. Take time to draw out a great plan. In construction, they'll figure that the planning process can take months, and (hopefully) they won't start until the plan is complete. A poor plan spells financial disaster every time.

Draw a plan with all details and material needed. Research online the availability of these supplies and the packages for the same. You will find that by doing your homework in the long run it will be rewarding.

When you have a good idea of what supplies you require for each project it will be hard for any contractor to trick you into getting poor quality material at high costs or even for any salesman to suggest what he/she wants to get rid of from the store.

Home remodeling supply will prove to save you a bunch of money in the end and still get the remodeling you dreamed of but, at the right cost and in the budget you had planned.

With a good plan and time for research, you can sometimes find great deals. On a recent bathroom remodel, for example, we found the perfect cabinet in a recycle center. It was brand new and in perfect condition. The contractor donated it because it didn't fit his client's project. Look around. Take your time. You'll be happier in the end.

Improving Your Home With Drywall

Improve or repair your home using drywall. To drywall a home for repair is easier said than done; however, it is never as difficult as some lead you to believe. When you start to drywall for home improvement, you must follow a few straightforward steps. As for tools, you will need a Putty Trial, Tray, sandpaper, and joint putty, scraper, hammer, paint, thinner, patches, plaster, and a few other items to finish the task. Of course, it depends on the size of the area as to what exact tools and materials are needed.

You will need sandpaper, since you start the drywall procedure by sanding down the walls and removing any lumps. You should sand until you see clear white area. You will need a cloth to finish the procedure by wiping down the wall removing any drywall dust.

Plaster comes in handy if there are holes in the wall, thus use the putty trial and scraper to apply the joint putty to fill in the holes and patch if applicable. From time to time, a second coating of plaster is required, thus repeat the course of action until the hole is filled and scraped down to smoothness. You will need to sand the plaster when it is dry.

Never start to drywall until you have sanded down the area, smoothed out the surface, and have washed the wall, freeing the area of any dust. Furthermore, make sure the region is dry previous to sandpapering the area. Start the drywall modus operandi by following the systematic steps provided to you in the kit purchased, and not until you have a clear smooth area.

You need to ensure that you avoid simple mistakes when planning and putting up drywall. Install the ceiling drywall before installing any walls. Work from top (ceiling) to bottom (floor). Try to run the drywall sheets perpendicular to the framing and mark joint locations so they are easier to find. If you can mark the stud locations on the ceiling and floor, do it so it is easier to fasten the drywall sheets. Check the plans for provisions for insulation, ventilation, moisture control and wiring prior to using drywall. Use dry wall nails or screws and cover the wallboard tape with compound. Make certain that you sand the drywall compound to ensure a smooth finish. If not sanded correctly, the bumps will show twofold when you apply paint. Most importantly, do not apply the drywall with the wrong side exposed.

After adding the drywall for home improvement, you are ready to paint. Thus, choosing the paint and brushes appropriate for the job will help you receive a grand effect. Paint the base line area before relocating any furniture in the home. Allow the paint to dry and touch up by re-arranging the furniture, curtains, etc.

Dry walling is not difficult and does not require a lot of technical skill, rather it is time consuming…

If your walls are in serious need of construction you might want to consider other options rather than dry walling and painting the area. Sometimes you merely cover areas that are deteriorating by adding new lining, paneling, covering, etc. Thus, checking into additional options might benefit you while saving you money and time.

Sometimes you can get away with repairs rather than entire makeovers. The walls are layered, thus a bit of plaster or spackle and other tools and materials could dress of the area. If you have rotted area, again you may want to consider other options, or else hire a drywall contractor expert to repair the home.

Sometimes you simply cannot get away with home improvement by doing it yourself. At times, you may need assistance, thus preventing deterioration is critical to save you money.

If you notice areas of the home that are starting to show wear, by taking care of the problem now will save you heartache later. The repairs are easier than entire improvements, thus repairs are also cheaper.

If you have dents, cracks or holes in the walls, buy a plastering or spackling kit and follow the instructions to repair the problem now rather than allow it to linger.

For repairs you will need paintbrushes, knives, spackle, latex bonding liquid, paint, patching plaster, sandpaper, fiberglass wallboard tape, and that about sums it up. For holes, you cover the area with the wallboard tape and then spackle to make the tape stick.

After the spackle is applied, using your sandpaper sand the area repaired until it is smooth. If you notice peeling, paint or loose plaster around the area, use your scraper to remove or clear up the area. After the spackle starts to dry and is sanded, add a second coating to cover the hole entirely. Again, sand and prime the patched area. Finally, you are ready to paint.

See how easy that was. Now, if you allow it to set without attention you will be doing a lot more work later and probably paying out a lot more money. You can use spackle to fix dents and cracks in the walls as well. Plaster or spackle will cover nail holes or holes made from screws. These home repair materials are affordable, thus cover now and save later.