Archive for the ‘Articles’ Category
About Relocatable Homes
What are Relocatable Homes?
Relocated homes are also known as prefabricated homes, which are manufactured or assembled in factories and are then transferred to the house plot. These homes were earlier marketed as mobile homes that could be transferred around and so was a requirement of people on the move. An example of a mobile home is a trailer which is usually attached to the back of the car or truck. Over the years these houses started becoming larger and were made to be set up in one place permanently on a masonry foundation.
Stereotypes
Relocatable homes are unfortunately a target of stereotypes, like they are cheap and trailer park homes, which is not true anymore. They have become an easy and convenient option for people who want a prefabricated home and don’t want to go through the hassle of building a home from scratch. This has caused quite a negative impact on transportable homes, like the fact that their value depreciates quicker than site built homes; they are thus not used as viable collateral for housing mortgages and also have a higher rate on interest. This has resulted in it being compared more to a motor vehicle loan than to a home mortgage loan.
As they are sometimes wrongly compared to trailer parks, many zoning committees have too many restrictions on relocatable home on particular sites. They have restrictions on the number of houses allowed to even what colour the exterior walls should be. Some zoning commissions don’t even allow single wide homes anymore.
Positive Changes
Things are changing in the field of manufactured homes with new developments and innovations resulting in classier and more durable relocatable homes. Today these homes have to be taken to the site by way of a flat bed in the case of a modular home or on axles in the case of certain modular homes and manufactured homes. They are then permanently set up on a concrete bed. The roof of the house in transported separately, which makes the manufactured home look no different than a site built home. This has also resulted in the reducing of the depreciation value and subsequently even the interest rates have reduced, too.
Looking for relocatable homes? Your answer lies with Tropical Cabins Pty. Ltd. For more information, please check out their website at http://www.tropicalcabins.com.au.
By: Ian Adams
About the Author:
Ian Adams has been in the business of the building of relocatable homes and structures for a long time now. He loves his work and likes to educate more and more people about the same through his articles.
Put Mum Out in the Backyard But Comfortably in Granny Flats
Sometimes referred to as a relocatable home, this living option is basically a pre-fabricated small cottage or cabin that will easily fit in many backyards. The “Willow” is a single bedroom cottage that can sleep as many as four. It has a kitchen with cook top and oven, a bathroom and comfortably sized living and dining areas.
A slightly larger option is also available with the same size bathroom and bedroom as the “Willow” but featuring a more roomy living area and balcony/deck. The “Willow” starts at $49K and its slightly larger sister is about $56K.
Granny Flats are available both in pre-fabricated and kit forms. Smaller cabins like the “Willow” are usually pre-fabricated. Larger units with two or more bedrooms are generally kits. All options can be modified to accommodate wheelchair access. Customization to fit specific needs is also available.
Quoted costs include the complete living unit ready for move-in, with full kitchen, windows and bath ready for use. The price does not include necessary governmental permits, soil testing and transportation costs. An electrician and plumber will be needed for hook-ups. Generally all of these can be accomplished in the $5 to $10k range.
Remember that Granny Flats aren’t just for elderly relatives. The largest cabin is basically a small home with two or more bedrooms. These units could be the perfect size for a vacation home at the lake or in the mountains.
By: N Baulch
About the Author:
Neil baulch says the good points of granny flats are plenty of when you need that spare living area. Look at our online page at granny flat and Accommodation units for extra details.
How to Make Properties Go Positive
The trick is not to focus on all the debt, but to build your strategies around cash flow. It is highly evident that many investors don’t know what to do in order to generate positive cash flow from an investment property. By asking yourself “How do I make money from an investment property I already own?” you will come to the conclusion that you need to generate more income or you need to reduce your expenses on that particular property.
How to Reduce Expenses on a Property
* Your biggest expense will be the monthly instalment that you have to pay the Bank. By extending the Bond over a longer period (like 30 years), you will reduce your monthly instalment. Don’t focus on the extra interest that you have to repay, it is the tenant that repay’s it for you.
* Negotiate a better interest rate with your bank. Normally when you extend the bond period to 30 years they are more than willing to drop the rate. In the process, negotiate a discount with the lawyer (up to 20% is normal, some investors get no less than 30%).
* Do your own management on your rental properties. It is a simple exercise of monitoring your bank account to see that the money has been deposited. Especially if you only starting out with a few properties. Once you have a strong, positive cash flow and enough properties, consider using an agent.
How to Increase Income on a Property
* The easiest is to have a rental escalation clause in your lease Contract. Normal escalations are 8 – 10% p.a.
* Consider converting a storeroom or double garage into a granny flat. Having more than one tenant on one property can generate substantial cash flow.
* Considering adding a granny flat if possible. It can be FAR cheaper than buying a new small flat.
* See if you can subdivide the land. Either to sell the divided part or to build a second unit on.
* Have you ever bothered to ask your tenant what he would like? A second carport or security gate can generate more income.
* Look at the security of the property. Can you add more security to increase the rent (e.g. burglar bars, alarms, etc)? If you don’t know, ask the tenant if such additions would add value.
* You can change the nature of the property? Rezone farming land for residential use or changing residential to business rights can be most rewarding.
* By adding additional businesses to you student housing like a Laundromat facility, games room with coin operated pool tables or put vending machines that sell sodas or sweets you can generate additional income. This will also make your property more appealing in comparison with the one next door.
* Convert a 4 bed 2 bath house into two 2 bed apartments. Not only will it generate more income but you reduce your risk as well.
By combining some of these ideas can easily make you property go positive. Also take note of what to look for when you buy your next property. The more space you have, the more options to consider. Each property has unique opportunities like extra space, additional buildings or it might be the ideal location. It is your job as an investor to identify the opportunities that others don’t see. Use your imagination to see with your mind and not only with your eye’s. In the mean time, with all the interest rate increases, exercise your imagination on your current property investments.
By: Karen Wheller
About the Author:
As a property investor and real estate agent in South Africa, Karen Wheller is actively engaged in helping local and foreign investors find property investments and beginning investors climb the property investment ladder through education and sharing of knowledge. Karen Wheller is a co-founder of Property Axis and Property Investor Network.
Granny Flats and the Cost Advantages
Granny Flats make a great extra area for relative units or a place for your teenager. The best thing is that it has several advantages over other buildings. One major reason why they are so popular is there low cost construction. But granny flats still can have great quality.
The cost of a granny flat stays low because of several reasons. The main reason for keeping the cost down is that they are constructed in a factory. A mass production of the frames saves a lot of expense on materials and labor. The frame and other components can be cut to size in the factory. The workers are all located in one location which will cut down on travel cost and workers will be able to help each other out when needed.
The possibilities of having theft at the building site would be highly reduced. So the replacement cost and time savings would be an advantage to keep the price low.
Granny flats can be constructed relatively fast, giving it an edge over other construction techniques. Granny flats usually have a simple construction keeping the cost down as well.
Delivery cost can be lower as well. Since the granny flats components are constructed off site all the components can be delivered at once. One trip of course is cheaper than multiple trips.
A few costs to keep in mind is the sub-contractors you may have to hire to put the kit granny flat together. Also, you may need to have someone to hook up the electric and plumbing. Some builders you will not have to worry about this.
Although you may have a few extra costs here and there you will probably find that this is a great way to get a granny flat. Next step is to find a builder to work with.
By: John Smith
About the Author:
Low cost Granny Flats or
transportable homes sydney go here now http://www.cheapaffordablehousing.com.au
How to Make Properties Cash Flow Positive
Many investors will agree that cash flow is the secret to successful investing. Whether it is a property or business, the key to success is to have a strong grip on your cash flow situation. Interest rate increases, like the ones we have recently experienced, can significantly eat into the cash flow. Many people think that one needs to amass great sums of money to build wealth, but building a strong inflow of cash can also bring about financial freedom without having piles of cash.
The trick is not to focus on all the debt, but to build your strategies around cash flow. It is highly evident that many investors don’t know what to do in order to generate positive cash flow from an investment property. By asking yourself “How do I make money from an investment property I already own?” you will come to the conclusion that you need to generate more income or you need to reduce your expenses on that particular property.
How to Reduce Expenses on a Property
* Your biggest expense will be the monthly instalment that you have to pay the Bank. By extending the Bond over a longer period (like 30 years), you will reduce your monthly instalment. Don’t focus on the extra interest that you have to repay, it is the tenant that repay’s it for you.
* Negotiate a better interest rate with your bank. Normally when you extend the bond period to 30 years they are more than willing to drop the rate. In the process, negotiate a discount with the lawyer (up to 20% is normal, some investors get no less than 30%).
* Do your own management on your rental properties. It is a simple exercise of monitoring your bank account to see that the money has been deposited. Especially if you only starting out with a few properties. Once you have a strong, positive cash flow and enough properties, consider using an agent.
How to Increase Income on a Property
* The easiest is to have a rental escalation clause in your lease Contract. Normal escalations are 8 – 10% p.a.
* Consider converting a storeroom or double garage into a granny flat. Having more than one tenant on one property can generate substantial cash flow.
* Considering adding a granny flat if possible. It can be FAR cheaper than buying a new small flat.
* See if you can subdivide the land. Either to sell the divided part or to build a second unit on.
* Have you ever bothered to ask your tenant what he would like? A second carport or security gate can generate more income.
* Look at the security of the property. Can you add more security to increase the rent (e.g. burglar bars, alarms, etc)? If you don’t know, ask the tenant if such additions would add value.
* You can change the nature of the property? Rezone farming land for residential use or changing residential to business rights can be most rewarding.
* By adding additional businesses to you student housing like a Laundromat facility, games room with coin operated pool tables or put vending machines that sell sodas or sweets you can generate additional income. This will also make your property more appealing in comparison with the one next door.
* Convert a 4 bed 2 bath house into two 2 bed apartments. Not only will it generate more income but you reduce your risk as well.
By combining some of these ideas can easily make you property go positive. Also take note of what to look for when you buy your next property. The more space you have, the more options to consider. Each property has unique opportunities like extra space, additional buildings or it might be the ideal location. It is your job as an investor to identify the opportunities that others don’t see. Use your imagination to see with your mind and not only with your eye’s. In the mean time, with all the interest rate increases, exercise your imagination on your current property investments.
By: Karen Wheller
About the Author:
As a property investor and real estate agent in South Africa, Karen Wheller is actively engaged in helping local and foreign investors find property investments and beginning investors climb the property investment ladder through education and sharing of knowledge. Karen Wheller is a co-founder of Property Axis and Property Investor Network.
