Sample Resources for Investing in Real Estate
The Value of Hotel Room Investments
This article on Tranio makes a realistic assessment of hotel room investments. Buying hotel rooms has a lot of advantages. Investors do not need very high capital, the hotel rooms promise high ROI, no management headache, and no risk for the investor. It is better to buy a hotel room with an established brand as such rooms provide high returns with the minimum effort on the part of the investor. The rate of return is usually 4 percent at a fixed rate and 6 percent to 10 percent at a variable rate. These hotel rooms can also be booked for personal use by the investor. The contract between the investor and the hotel management usually ensures a fixed period of use by the investor every year. This type of investment, while good for diversified portfolio, involves some complications in case of foreign investors.
Is it Better to Invest in Commercial or Residential Real Estate?
In this article, Invest Four More compares the residential property market to the commercial property market for the purpose of investments. According to this article, while residential properties get easy financing and are easier to rent out, they may yield lower return than commercial properties. Commercial properties generally involve complicated financing and many paperwork, innovative financing options are available through REITs and crowdfunding. Commercial leases also tend to be longer and less stable then residential properties. In economic downtimes, residential properties will still rent out but commercial properties may have tough time finding renters. The biggest benefit of investing in commercial property is that a long lease ensures annual increases in returns with the publicly listed tenant meeting the cost of maintenance and land tax.
How International Issues Affect Foreign Investment in U.S. Real Estate
Foreign investors have viewed the U.S. real estate market as a safe haven for investing money. The New York and Miami real estate markets are among the most popular markets among the international investors. 2015 witnessed 15.4 percent of commercial property holdings in U.S. going to foreign nationals or foreign companies. In the residential property market, the National Association of Realtors reported 4 percent of homes in U.S. going to international buyers, which amounted to 8 percent of the total sale amount for the year at $104 billion. The international residential property buyers in 2015 hailed from Canada ($11.2 billion), Mexico ($4.9 billion), U.K. ($3.8 billion), China ($28.6 billion), and India ($7.9 billion). Read the full article how U.S. politics overseas has affected foreign investments in their domestic market.
Reasons to Invest in the Hotel Industry
According to the American Hotel & Lodging Association, Tourism is the third largest retail industry in the U.S., preceded by automotive and food stores. The average, combined daily spends of domestic and travelers are $1.8 billion. Tourism also supports over 15 related industry sectors like travel agents, airlines, cruise lines, hotels, restaurants, and more. One recent investment trend in the hotel industry is the growth of the Franchises business, which typically provides high returns with low investments, affordable hotel rooms, opportunities for franchises food, beverage, and retail chains, and stability to withstand economic downturns. Great possibilities exist for the franchise businesses in U.S. and worldwide tourism industries. Read the full article to learn about the primary reasons for investing in the franchises hotels.
Seven Things You MUST Know About Investing in Real Estate IRAs
Many people in the U.S. are aware that Individual Retirement Arrangements (IRA) funds can be utilized for real estate investments, but they do not know the specifics of the IRA procedures. This Trust etc. article lists seven major elements of real estate IRAs, which include prohibition on self-dealing transactions, prohibition on indirect benefits from self-directed IRA, the need for property titles to be in the name of IRA, multiple financing options, expense payment rules, and the need to reinvest self-directed IRA property income into IRA. The rules are explained in layman terms and meant for anyone who wants to use IRA funds for real estate investments.
How to Successfully Invest in Real Estate with Brandon Turner
Brandon Turner, a successful real estate investment expert, shares his investment wisdom in this Investor Junkie article. He talks about the Federal Housing Administration (FHA), which is an easy financing option available for real estate investments. Though FHA loan can be obtained without a large down payment, careful planning is required for a remodeled property. If the upfront costs of remodeling are too high, and the returns from rents are not matching, the investor can end up losing a lot of money from miscalculated ROI. According to Turner, financial planning is the key to successful investment strategy.