Monthly Archive: November 2017

7 Skills you should Acquire and Keep on Practicing if you want to Become Successful in the Real Estate Business

As in all work and business situations, there are sets of skills that need to be learned and practiced.  Some people are born with certain skills that will make them perfect for the type of work where these skills can be used.  And, yes, you can learn new skills sets that are work-related.

7 Skills you can learn to be efficient in the Real Estate Market:

  1. Do not try to be excellent in everything: Try as many of the categories in real estate as you can manage and gain general knowledge about all of these areas.  You will discover which one of these areas you enjoy the most, focus on that one thing.
  2. Choose a sales strategy that you like and master the one before finding more to learn: Do not attempt to dabble in this and that when you are still learning.  Learn to master each strategy before moving on to another.
  3. Make sure of the facts: This advice you can use in all areas of life.  If you do not have all the facts you can fall victim to so many things.  In real estate, you should double check on savings on taxes and the setting up of entities.
  4. Associate with people that you admire and can use as a role model: In whatever it is you want to achieve, find people who did that successfully.  Hang around with them, online, if there is no other way.
  5. Always hope for the best, and then remember to plan for the worst: You need exit strategies when something should not go as planned.  A contingency plan will also be needed to follow up after a breakdown in the original planning.
  6. Stay up to date with what is happening in the real estate market: Make sure that you have the relevant information before you start spending resources, time and money on real estate.  You can add more value to your endeavours when you are up to date on all the facts.
  7. Know Yourself: Nobody likes to admit to themselves that there are certain things they do not excel in.  It will only hold you back if you try to do something better done by others.  Let others help you with the things you cannot manage.

There are still more skills to be learned and always more knowledge you can gain.  We get sidetracked quite easily, make bad decisions and lose the way, therefore, always do your homework well.

An A to Z Explanation of a Few Terms Used in the Real Estate Market

Dealing with official documentation can most times be baffling and the words used cannot be found in a regular dictionary.  It is no different with all the paperwork needed when buying or selling a house.  Translating and understanding some of the words and phrases might require a superhuman mind.

A few Real Estate Terms that baffles the most:

  1. Amortisation Period; indicates the number of years that will be needed to make full payment on a home loan.
  2. Caveat emptor; is taken from Latin and means, “buyer beware”, which means that you should make sure of all facts regarding the sale. The purchaser carries all risks in a property transaction.
  3. CGT; in short for Capital Gains Tax. This is Real Estate terms for a tax that is levied on profits gained from the sale of a property; (not that of a family home) but investment properties.
  4. Disbursements; are costs for services rendered by a real estate agent, for instance, advertising costs and photography, which can be claimed from the client.
  5. Equity; is the value of a property that is more than the debt owed, that is then the asset the owner will have when selling the property.
  6. Exchange of contracts; will make the process of selling or buying a property, legal, and a binding agreement. At this point, a deposit is usually paid but can be forfeited if any of the two parties should back out of the said agreement.
  7. LMI; Lenders Mortgage Insurance is designed to protect the lender if the borrower should default on payments. This is often payable if the borrower did not have a big deposit.
  8. LVR; Loan-to-Value ratio indicates the proportion between the values of a property against the money borrowed. If the LVR is higher than 80%, the lender will likely be charged to pay mortgage insurance.
  9. Mortgage Protection Insurance; is an insurance policy that will cover the borrower’s payments on the mortgage if something should happen, for example, in the event of injury or illness.
  10. Reverse Mortgage; is usually when the homeowners are older. It means that repayments will not need to be done until the property is sold or when the homeowner dies.

These terms are only a few of the many that can make reading and understanding legal documents a nightmare.  Many words are derived from Latin, a language that is unfamiliar to most.