Shrink Your Rental Property Loan Today with These Proven Methods
Unless you have loads of cash tucked away, chances are you will need a rental property loan when you want to buy an income generating rental property. Naturally you will want to make sure you get the cheapest loan possible so that you won't end up paying more than you have to over the life of the mortgage loan.
There are two major ways to save money on a rental property loan. It includes getting the lowest possible interest rate and paying less total interest over the life of the loan.
There are three basic types of mortgage loans with their own advantages and disadvantages depending on your short and long term plans for your rental property. We are talking about fixed rate, adjustable rate and convertible loans here.
1. What Exactly are Fixed Rate Loans?
A fixed rate rental property loan is perhaps the most straight-forward loan available to landlords. This loan is so-named because the interest rate does not change over the lifetime of the loan. Unlike adjustable rate and convertible loans, your payment will not change according to the fluctuations in the market.
A fixed rate loan is generally the best choice if the mortgage rates are relatively low when you buy, such as during a recession or slow housing market. It's also a good choice if you plan to keep your property long term and want predictable mortgage payments.
2. How do Adjustable Rate Loans Work?
Fixed rate loans tend to start off with rates much higher than adjustable rate mortgages (ARMs) and convertible loans. In contrast, adjustable rates start low, then adjust upward at regular intervals and may eventually surpass fixed interest rates.
Why choose an ARM? If you can't afford current fixed rates but don't want to pass on that excellent rental property ARMs can help you get in. You will also want to have an exit strategy though, whether this means refinancing to a fixed rate later on or selling your property after a few years.
3. Finally What are Convertible Loans?
A third option that you can go for is a convertible loan with an adjustable rate for the initial time period of usually 3 to 7 years. After this time, you will have the option of converting your loan to a fixed rate.
It's also important to remember that the longer the term of your loan, the more you will pay in interest over time. A shorter loan term will mean a larger mortgage payment every month but this will reduce the total cost of your rental property loan at the same time. So it's a good idea to choose the shortest loan duration that you are able to afford.
Which Rental Property Loan is Right For You?
If you plan to keep the property long term, a fixed rate mortgage is usually best. If you plan to keep the property for just a couple of years, an ARM is a good choice, but it carries risks if you can't get out of the loan after the initial lock-in term. Finally, the convertible loan is a nice middle ground that will let you switch to a fixed rate later on.
Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on rental property loan, visit his website today for step-by-step real estate guides, free resources and forms.
Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo.com http://www.propertydo.com/ – Visit his website today for step-by-step real estate guides, free resources and forms.
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Filed under News by on Oct 13th, 2010. Comment.
Office rental growth in Hong Kong accelerates
According to Knight Frank Research, strong demand from the corporate sector and limited new office supply have resulted in declining vacancy rates and accelerating office rental growth. The average rent of Grade-A offices rose by 3.9% in August, after rising by 3.0% in July. The month-on-month rental growth in August was the fastest since April 2008. Among all districts, "Traditional Central" led the market over the past month with rents growing 7.7%, followed by 6.3% in Causeway Bay and 5.9% in Kowloon East.
Mr. Xavier Wong, Director and Head of Research, Greater China, Knight Frank says "in the leasing market, we saw a number of financial institutions and professional services firms scrambling for the limited spaces in core areas. The average vacancy rate on Hong Kong Island dropped to 3.1 % in August from 3.5% three months earlier. Office availability has been particularly tight in Central, where there is an absence of new supply in 2010 and demand from financial sector has been distinctly strong. We have identified 15 office buildings in Central with near-zero vacancy rates as of August."
"A number of landlords put their office premises up for sale amid the red-hot market," says Mr Wong. "Price growth slowed slightly to 1.3% over the past month, compared with 2.9% in July. Central led the market with a price growth of 2.1%, followed by 2.0% in Causeway Bay and 1.6% in Sheung Wan. Office prices in Admiralty and Tsim Sha Tsui remained relatively stable in August. After rebounding 76.1% over the past 18 months, the average Grade-A office price in Hong Kong in August was only 8.8% lower than its 2008 peak."
A landmark transactions in August include the en-bloc acquisition of Bowa House in Tsim Sha Tsui by a local investor, for HK0 million or HK,000 per sq ft. A whole floor in Bank of America Tower in Admiralty was sold for about HK6 million or HK,980 per sq ft, whereas a whole floor in Lippo Centre in the same district changed hands for HK5 million or HK,213 per sq ft.
Mr Wong concludes "considering the stronger-than-expected leasing demand, we have revised our forecast of office rental growth in 2010 from 15% to 25%. In 2011, the average rent is expected to rise by a marginally less rapid rate of 20%, as a number of office completions in Central, including the redevelopments of Dragon Seed Building, Luk Hoi Tung Building and Crocodile House, are due. By mid 2012, the average Grade-A office rental is expected to surpass the previous peak recorded in May 2008."
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US6 billion worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
Knight Frank has a strong presence in the Greater China property markets, with offices in Hong Kong, Beijing, Shanghai, Guangzhou and Macau, offering high-quality professional advice and solutions across a comprehensive portfolio of property services. For further information about the Company, please visit KnightFrank.com.hk.
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Filed under News by on Oct 11th, 2010. Comment.
E.L. City Council rejects rental license
East Lansing City Council denied an application for a rental license, which has been in the process for more than a year, at its Tuesday night meeting at City Hall, 410 Abbot Road.
Read more on The State News
Wentworth council changes speed limit
Pending a final decision from the Board of Transportation, motorists will be able to travel 45 miles per hour from Sandy Cross Road to Fleming Road
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Occupancy guidelines take focus of Oct. 4 public hearing
SPANISH FORT, Ala. — Residents can voice their opinions on a variety of topics—including proposed single-family occupancy guidelines—during the City Council’s Oct. 4 meeting.
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Filed under News by on Oct 11th, 2010. Comment.
Hong Kong CBD rental growth accelerates
(Hong Kong) – The ‘Premium Central’ district led the market with rental growth of 5.1% in November, the fastest rate since April 2008. Rents of premium buildings in the CBD have rebounded 12.7% since bottoming in July this year.
During the recent financial crisis, landlords in Central lowered their asking rents significantly in order to maintain occupancy levels in their office premises, says Xavier Wong, Head of Research for Greater China at Knight Frank. In November, the vacancy rate in Central stood at 3.4% and remained the lowest among all business districts. With increasing demand for office space from the finance sector, these landlords have been able to ask for higher rents.
The market is divided on the outlook for the leasing market over the coming year. As certain investment banks will relocate their offices from Central to International Commerce Centre (ICC) in Tsim Sha Tsui in 2010, some market watchers are wary of offering a positive forecast. They fear that vacancy levels in Central will drastically increase, hampering the recent revival of Grade-A office rents in the district.
However, Knight Frank believes the uptrend in office rents will continue in 2010. Rising demand along with a recovering economy should be enough to absorb the spaces gradually vacated by investment banks. For instance, of the 200,000 sq ft of space in Central vacated by an investment bank earlier this year, more than 75% has already been taken up, reflecting strong demand for premium office space in the CBD.
Another two investment banks will move their offices from Central to ICC, probably in mid to late 2010. The amount of space in Central these banks will retain is yet to be known. If their offices were vacated at the same time, the overall vacancy rate in Central would rise by about three percentage points. However, the two banks are likely to retain part of their operations in the CBD and relocate their offices in phases. This will mitigate the impact of their relocation on overall rental growth.
The recovery of Hong Kong’s economy will be more visible in the coming year. Mainland companies’ Initial public offering (IPO) activity in Hong Kong is expected to increase and demand for office space should strengthen in tandem. Against this backdrop, landlords in Central will have the confidence to lift asking rents, despite the partial relocation of two investment banks to ICC. Mr. Wong believes Grade-A office rents will witness a growth of about 15% in 2010, with rental growth in Central likely to outperform other business districts.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US6 billion worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
Knight Frank has a strong presence in the Greater China property markets, with offices in Hong Kong, Beijing, Shanghai, Guangzhou and Macau, offering high-quality professional advice and solutions across a comprehensive portfolio of property services. For further information about the Company, please visit www.knightfrank.com.hk.
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Filed under News by on Oct 9th, 2010. Comment.
Hammersmith, London (PRWEB) October 8, 2010
Winkworth's latest quarterly review analysing trends and the outlook for the UK residential property sales and lettings markets, shows that tenant registrations soared over July and August, finishing 47% up on May, and the number of potential renters in August was up 14% on last year. In contrast, the number of rental properties on the market in August was over 50% lower than a year ago.
Dominic Agace, CEO of M Winkworth Plc, said that this shortfall in supply has pushed up rents:
"Rentals have seen price increases following a shortfall in investment in the sector by private landlords due to the suspension of buy to let mortgage products over the last two years and the selling off of "accidental landlord" properties. While there has been some renewed supply of buy to let mortgages, these remain expensive for buyers with less than 20% equity, and with the increase in Capital Gains Tax providing a new barrier to investment, ongoing supply constraints will continue to support rents".
The National Housing Federation recently announced that the average age of a first-time buyer has risen to 43. Lenders' demands for high purchase deposits mean that increasing numbers of first time buyers are struggling to get mortgages and therefore renting for much longer. As a result, properties are not coming onto the market. Limited buy-to-let mortgage options are also preventing landlords from strengthening their portfolios and bringing fresh stock to the market, so demand continues to outstrip supply.
This increase in demand and shortage of stock has led to a year-on-year rent price increase of 5% which is broadly in line with inflation. But this continued supply and demand pressure is likely to push average rents up further as we move into autumn.
For more information please contact Bola Sodeinde at Winkworth press office on +44 (0) 208 576 5598
Notes to Editors:
About Winkworth
Winkworth is a leading franchisor of residential real estate agencies and is listed on the London Stock Exchange. Established in Mayfair in 1835, Winkworth has a pre-eminent position in the mid to upper segments of the central London residential sales and lettings markets. In total, the company operates from over 80 offices in the UK, France and Portugal, having doubled in size in recent years.
The franchise model allows entrepreneurial professional estate agents to provide the highest standards of service under the banner of a well-respected brand name and to benefit from the support and promotion that Winkworth offers. Franchisees deliver in-depth local knowledge and a highly personalised service to their clients. For further information please visit: www.winkworthplc.com
Winkworth Quarterly Analysis (Autumn 2010)
The Winkworth quarterly review analyses trends and the outlook for the UK residential property sales and lettings markets. The data for the report is gathered from a monthly survey of franchisees and should therefore be considered as indicative rather than factual. Follow this link for a full copy of the report: http://www.winkworth.co.uk/public/static/autumn-2010-market-analysis.pdf
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Filed under News by on Oct 9th, 2010. Comment.
Woman says then-fiancé acted normal on day of bombing
Jamie Lewis said she was totally “shocked” when police arrived two days after the bombing at the West Coast Bank to arrest her future husband.
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Enterprise Homes Celebrates Grand Re-Opening of Sierra Woods Apartments in Howard County
Enterprise Homes, Inc. yesterday afternoon joined Howard County Executive Ken Ulman, Howard County Councilman Calvin Ball, Howard County Housing and Community Development Deputy Secretary Clarence J.
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Free health clinic plan draws fire
The Nassau County School Board has tabled until Nov. 9 a proposal to open a free health clinic for its employees. The plan, intended to reduce health insurance premiums, has met with criticism because of possible upfront costs.
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Police bust marijuana grow houses
TWO ST. MARYS houses, located at 200 N. Fourth St. and 8 Oyster Cove Drive, were found by police to be the hiding place of more than 350 marijuana plants. No suspects have been identified or arrested in the case.
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Filed under News by on Oct 9th, 2010. Comment.
(PRWEB) October 7, 2010
For the past 10 years, this 26-acre private estate on Eustatia Island in the British Virgin Islands (BVI) has been exclusively rented to wealthy individuals by request. Now, this spectacular, low-impact, island property situated near the North Sound of Virgin Gorda is available for rental to a broader clientele. It is one of only a few private island properties available for rent in the Caribbean, and only one of three in the BVI.
The reef-enclosed 30-acre island includes three soft white sand beaches, gardens and mountain top viewing and lounging area with awe inspiring, 360 degree vistas of pristine islands and open sea. Eustatia has one of the largest coconut palm plantations in the BVI and is a naturally preserved habitat for a wide variety of birds, flowers, cacti, and succulents. The volcanic island can be explored along the carefully planned hiking trails while a gentle walk along the beaches and shoreline routinely produces a cornucopia of seashells, conch shells, sea glass, and coral. The island shores are also home to rays, starfish, sea turtles, and a variety of reef fish. The calm waters off the beach are ideal for swimming and snorkeling expeditions over coral reefs around the island.
The rental provides exclusive use of the entire estate which encompasses all but four leased acres on the western tip of the island and is inclusive of gourmet meals and watersports equipment. The estate is designed to luxuriously accommodate up to ten guests; six in the hilltop three-bedroom Villa Far Niente with pool and hot tub, and four in the two-bedroom beachfront Casa de Playa. Villa Far Niente offers spectacular 360 degree views, sunsets and sunrises, while Casa de Playa is located right on the beach a few feet away from the shoreline. A professional and discreet hospitality staff including personal chef address any guest needs.
Uniquely, if only one villa is rented, the common area of the other villa is available for guest use and the entire estate is exclusively at the guests’ disposal. All villas are comparably equipped and come with fully stocked kitchens and bars.
The management is housed unobtrusively on the island and is available around the clock. Guests can also choose to stay in complete solitude with staff relocated off-island only minutes away across the bay. Additionally, a three-suite beach cottage for up to six additional guests, can be made available for an extra charge bringing the total number of guests capable of being accommodated on the island to sixteen.
The waters of Eustatia Sound are undoubtedly the BVI’s best watersports location as the protective reef, flat water and steady trade winds offer ideal conditions for most activities. Sea kayaks, paddleboards and Hobie Cats are available for guests to explore the neighboring protected bay, islands and beaches. Guests also have a choice of the 14-foot Caribe or staff-operated 22-foot Zodiac to enjoy water skiing, wakeboarding, tubing, and wake surfing. Windsurfers and kiteboarders can launch straight from the beach that typically boasts perfect cross-shore wind conditions.
Eustatia Island also has its own private fleet of luxury yachts and boats available for charter with captain and crew. Alegria, a San Juan 38, is a luxury motor cruiser ideal for comfortable motor cruising through the beautiful British Virgin Islands. For a relaxing day at sea under sail Manaaki, a Friendship 40, with its eye catching classic lines and comfortable cockpit is a sailor’s delight. Sportfishing enthusiasts will appreciate the 31-foot Pursuit 3070, Plan B, ideal for getting to the hot fishing spots on the South Drop, North Drop, or Sea Mount.
Nearby, to the south of Eustatia, lie the popular vacation destinations of Virgin Gorda’s North Sound; Prickly Pear Island, an undeveloped national park, lies to the West; Sir Richard Branson’s Necker Island, a Virgin Limited Edition luxury retreat, lies just to the North; and the Atlantic Ocean to the East. All are within a mile of Eustatia Island.
Sustainability is a priority for the owner and it goes beyond the careful selection of furnishings from recycled or sustainable wood species from around the world: Eustatia is 100% powered by solar energy and the water supply is collected rain water filtered and purified for use throughout the island. Water from sinks and showers is recycled to irrigate the tropical gardens and dual water flush toilets help reduce consumption. An organic, on-site sewage treatment process helps further recycle water into the landscaping.
“This island rental opportunity is truly unique,” said Edward Childs of Smiths Gore, one of the BVI’s leading real estate agents, and representatives for the island. “Most islands in the Caribbean operate as small resorts whereas on Eustatia you have the island almost entirely to yourself.
“It is one of the most beautiful and secluded islands in the Caribbean yet also one of the most affordable with introductory rates for this opening season. The exclusivity of the island is matched only by its proximity to the renowned North Sound destination on Virgin Gorda.”
Introductory rental rates for both villas (five bedrooms and ten guests) start from ,000 per week in the Summer peaking at ,360 per week in the Christmas/New Year period. Rates for single villas range from ,000 (two bedroom) in the Summer to ,216 (three bedroom) during the Christmas and New Year period.
Rates do not include 7% government taxes and 15% service charge.
For more information, stunning photos of the island, and rate details, visit: http://www.eustatiaprivateislandrental.com.
For reservations information, contact Ms Michelle Cornish, hospitality manager of Eustatia Island: mcornish(at)eustatia(dot)com, Tel: (284) 495 7608 or (284) 541 7609.
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Filed under News by on Oct 8th, 2010. Comment.


Read the 2011 1st half London Vacation Rental Market Report
New York, NY (PRWEB) October 20, 2011
New York Habitat has just released the 1st half 2011 London Vacation Rental Market Report. The report details the present state of the London Vacation Rental Market, offers insights into the future of the market and offers comparison data from past years. The report has been designed to provide information and advice for apartment owners and people traveling to London about the vacation rental market.
The 1st half of 2011 continued to see strengthening of the London market. Prices of vacation rentals were climbing and the number of requests was increasing as well. With the price increases, customers were more selective about their apartment choices and considered hotels as an alternative. Overall, bookings were slightly down. Some of the factors influencing the London vacation rental market included:
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Filed under News by Home Loan on Nov 25th, 2011. Comment.