To Obtain Residency In Andorra, Applications Need To Be Submitted In Catalan

Category: Finance, Real Estate.

Andorra, the tiny independent country in the Pyrenees, saw her property prices rise in value by 13 per cent last year, and a local travel guide suggests that another rise in prices is likely in the year ahead.

But what really pushes the prices up is that there s a third stream of buyers, people from around the world who want to take residency and benefit from Andorra s tax haven status. Property currently for sale in Andorra include one bedroom apartments at 210, two bedroom apartments, 000 Euros in Soldeu, the main skiing area of Andorra, 000 Euros and, at 272 280, 000 Euros in another ski village Arinsal, and three bedroom apartments in the capital Andorra la Vella at 333, 000 Euros. Best known for her ski resorts, Andorra attracts nearly ten million tourists a year, but it s not just the holiday makers who are falling in love with the country and buying second homes that is fuelling the price rises, the guide says. Quite a few tourists do like Andorra enough to buy a ski apartment, and there is an active local market too. Houses start from around 900, 000 Euros. Most seemed convinced that the tax take from their earnings will rise more in the years ahead, and are planning for retirement and selling their businesses now . Andorra property specialists have also noticed an increase in buyers recently, and comment that a large part of the increase in buyers is the increased attention from potential overseas property buyers in the UK. The number of buyers from the UK has increased quite noticeably over the last couple of years , they say, With many quoting higher taxes in the UK as their reason for moving to Andorra. The companies also comment that historically tax havens have been popular no matter how the economy is.

More Property Price Increases. When someone buys a property in Monaco it often doesn t matter to them if it s a few hundred thousand Euros as they re going to save more than that in tax during the time they are resident in Andorra. Demand for property in Andorra for the year ahead is every bit as high as in the past, with many potential buyers already having planned visits. Up to eighty per cent of a property s value is often agreed by the banks in Andorra. Surprisingly perhaps for a tax haven, mortgages for a property are as available as many European countries, with rates around the same level. Buying a property in Andorra is often seen as a route to residency, which entitles people to live in Andorra and benefit from her tax haven status. A notarised copy of the applicants passport, birth certificate and a certificate of good conduct from the home country are submitted at the same time.

To obtain residency in Andorra, applications need to be submitted in Catalan. Residency normally takes between three and six months to be approved. One of the drawbacks for those looking to become a resident in a tax haven when considering Andorra has been that the country has no airport of its own, and is unlikely to have ine future given that it is located in the Pyrenees. Once residency is granted, residents are supposed to spend six months a year in Andorra, but this isn t policed. The nearest airports are Barcelona and Toulouse. Especially when you consider that their properties could be rising in value quite significantly in the years to come.

Recent improvements in the road from Barcelona to Andorra though have cut the travelling time by some thirty minutes to two hours fifteen minutes. Given the tax advantages Andorra has , note a travel guide, A two and a quarter hour trip to the nearest international airport could be viewed as a small price to pay for those who will be saving substantial amounts of money in tax.

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Analysis Of The Tenant Mix With A View To Optimising It Is An Important Part Of The Buying Process. 2) Property Zoning

Category: Finance, Real Estate.

Commercial Real Estate Projects are, the same as, in many respects residential real estate investments except for their size. In this article we examine three of the most significant non- financial issues that an investor should consider before investing in a commercial real estate deal. 1) Selection of tenants.

A commercial develpoment may well be many times larger in scale and thus require much more money. Given that most real estate investors are buying property to generate cash flow and generate profit from asset appreciation some time looking at the tenant mix of a commercial building can determine the potential profitability of a project. So, finding a project with creditworthy tenants- or, at least, the expectation of finding them is a priority. Seeking creditworthy tenants may well assist in gaining finance on good terms from potential lenders- many lenders will make an offer that is based upon the credit rating of the larget tenant. Analysis of the tenant mix with a view to optimising it is an important part of the buying process. 2) Property Zoning. If zoning should change during redevelopment of a property then there will be significant additional costs associated with changing the use of the property to meet the new regulations.

Success in real estate investment has much to do with land zoning. Due diligence is the key here. Use the attorney to check that, all necessary accesses, for example are available and that rights of way have been established and any development will not cause rights of way conflicts. 3) Check Utilities. Hire a real estate attorney to check on the property to find out if there is a likelihood of re- zoning and other legal issues. A thorough inspection of all utilities and their condition is mandatory. In the worst cases, where pipes and wires are emebedded in walls, ceilings and underfloors the cost of renovation may make a project non- viable without complete demolition.

Reinstalling electrical systems and piping can be very costly and any defect should be factored into the offer price. So, spend some time with an appropriate legal advisor, check and optimise the tenant mix and ensure that utilities are in serviceable condition. Although these factors may not be an immediate part of the financial considerations they should be as shortcomings in due diligence can prove expensive and, issues uncovered should, of course be reflected in the purchase price of the property.

Los Cabos Will Fill All Your Desires

Category: Finance, Real Estate.

Los Cabos will fill all your desires. Whether you want to call Los Cabos home or purchase property for a quick getaway at anytime, it s one of the hottest places people are interested in today.

A secluded destination once only visited by power players and movie stars has become a location for everyone to enjoy. It is considered to be the number one fastest growing resort area on the continent. This is what s happening in the Baja California Sur as we write this and will be for years to come. Everyone knows when you buy property at inexpensive prices and the surrounding area grows bigger, the worth of your real estate skyrockets. What started out as an area for pirates and buried treasures many centuries ago has become the center of a booming real estate empire. Definitely a low increase compared to what the future holds in the next twenty years. In fact, this Mexico golden egg has increased its revenue since the turn of the twenty- first century by one hundred sixty percent.

Having trouble trying to put this all together and picture the development? The area is contained within the likes of the Pacific Ocean and the Sea of Cortez, giving off a tranquil serenity like no other. Since 1997, Los Cabos has had three- quarters of a billion dollars invested in hotel resorts, tourist events, golf courses, shopping areas, and hundreds of businesses to give everyone who visits everything they ever wanted in a vacation destination. In the distance, the mountains reveal to everyone around that this is a world of its own. When you re ready to purchase property in Mexico, there are a few things to keep in mind before looking. All those who visit will not only enjoy the benefits of the accommodations and activities, but the scenery as well.

Since the area lacks largely in financial loans, sellers sometimes offer to finance the buying price themselves. Oh, one more thing, get your own attorney for the transaction. So don t be surprised if this type of offer comes from them at some point during negotiations. Since most likely this purchase will be for vacation purposes, have fun with it. The only difficulties you ll have is figuring out how to choose a dream house on the beach because they will all look like one when you see them in person. With Los Cabos growing to new heights, there will be plenty of options available. Los Cabos is truly a tropical paradise with miles of beaches, world class golf and fishing, five- star Resorts, unbelievable night- life and dining experiences, snorkeling, scuba diving, surfing and desert adventures.

Dream no more and do what other dream seekers are doing by getting in on the boom of Los Cabos. These reasons, along with the friendly people and perfect weather, have created a location where international visitors are taking advantage of the real estate opportunities available here.

As In The UK, Employment In Spain Generates Taxes

Category: Finance, Real Estate.

Fuelled by the influx of tourists and the resultant boom in Spanish property prices, more and more foreigners are moving to and working in Spain.

There are several reasons why working in Spain has become such an attractive option. Unlike in the past when Spain was just a temporary holiday destination for tourists, the number of immigrants working in Spain has risen in leaps and bounds in the last five years. For many, the lure of buying relatively inexpensive Spanish property and living in the beautiful country sets them to look for suitable employment and business opportunities. However, many of the other perks that come with working in this beautiful country more than make up for a few lost pounds or Euros! For many others, it is the prospect of a much more relaxed and stress- free working environment in Spain that draws them, despite the fact that working in Spain will not be as highly paid as in many other European countries. There is no shortage of job opportunities for foreigners with the right kind of skills and experience.

The latter option is particularly appealing to a lot of migrants from other European countries. Broadly, there are two options for working in Spain: either find a suitable employer or start a business and be self- employed. Rough estimates indicate that almost one- tenth of new enterprises starting up in Spain are set up by foreigners. Moreover, as the Spanish property sector continues to grow, the construction industry also offers several options for working in Spain. Considering the popularity of Spain as a tourist hotspot, it is not surprising that a number of jobs are available in the tourism& hospitality sector, particularly in the coastal regions. There is a strong demand for bi- lingual professionals in various sectors, as well as for teachers. Spain provides a congenial environment that welcomes foreigners from anywhere in the world and provides them with opportunities for working, and integrating into society.

Those with experience in housekeeping and other domestic services are also much sought- after, to serve both wealthy locals as well as foreigners who are retiring to Spain having bought Spanish property. As in any country, foreign nationals desirous of working in Spain must follow some simple legal procedures. Also, prospective employees are, before starting work advised to get formal contracts drawn up which clearly stipulate the terms of the employment. While citizens of EU member countries are free to work in Spain without a work permit, non- EU residents are required to obtain the necessary work permit. Even though initially a new employee may be given a short term permit to work in Spain, the employer is obliged subsequently to provide a long term contract( subject to conditions, of course. However, if you intend to be self employed, then you are advised to obtain the services of a Gestor who will guide you through the requirements of working in Spain in your chosen field. Typically, if you are working for a company, they will arrange for all the relevant paperwork to be completed.

The majority of UK nationals who migrate to Spain seem to start their own business. As in the UK, employment in Spain generates taxes. The local Town Hall issues the necessary permit for working as a self- employed professional in Spain. Employers are expected to deduct social security from monthly wages. One of the benefits of working in Spain and paying your social security is that you will be entitled to free medical facilities which are first class and comparable to, if not better than, those in the UK. When operating a business, the government expects you to pay the VAT( known as IVA in Spain) , though there are certain minimum requirements for your business before you attract the attention of the VAT inspector.

PROPERTY MANAGEMENT COSTS

Category: Finance, Real Estate.

People talk about running the numbers before buying an investment property, but before doing that we need to discover what are the numbers and how do you get accurate numbers.

In this article we will go through the costs and factors to consider to make your investments successful. Running the wrong numbers can make the difference of making$ 500 or losing$ 1000 per month. RENTAL INCOME. Sometimes properties are under- rented and sometimes properties are over- rented, so be sure to find out the market rents when you consider a property. Rental income is not as straight- forward as it seems. When we bought our first fourplex, we looked at comparable leases and realized our rents were too high, so instead of assuming we would continue to receive$ 3600 of rental income, we had to be realistic and assume it was more like$ 320 MORTGAGE INTEREST. You should definitely sort out the details of your loan options and get an idea of current rates before running the numbers.

A huge cost is mortgage interest. It could make or break a deal. Triplexes and fourplexes tend to have higher rates, and commercial is a whole other ballgame. If you are getting a duplex or a house, the loans are generally similar to other home loan programs. One thing to consider is to put more down because the more you put down, the less your loan will be, which means less monthly interest to pay. We usually recommend for people to get a fixed rate mortgage these days because the current ARM( adjustable rate mortgage) rates are not all that much lower than fixed rates. Another consideration is the type of loan.

Basically, just get educated about the loan options and run the numbers with them. The best way to get educated is to talk to a variety of mortgage brokers and banks to find your best solution. Oh, and also, do not just take advice from one mortgage person. Not all loan places have the same programs. People frequently use the taxes from the year when they purchased the property, assuming the taxes will stay the same. TAXES. Taxes change every year.

For example, an owner occupied property usually has tax breaks, so unless you intend to owner occupy too, your taxes will go up. Taxes can go up drastically after a purchase. Also, the county appraisal that your taxes are based on could go up after your purchase. The safest approach is to look at the tax rate and the purchase price to determine your future taxes. For example, if you buy a property for 100, 000 but the tax appraisal last year was for 50, don, 000' t count on it remaining at 50, I have seen, 00In fact cases where a year after a property was purchased the tax assessor increased the appraisal value to the purchase price. VACANCY COST. Even when looking to invest in a desirable rental area, it's best to always take into account at least an 8- 10% vacancy rate.

For some reason people tend to forget to take into account vacancy rate. Do some investigation, look at your market and find statistics on the average vacancy rate. We have personally found the biggest surprise to be the expense of tenant turnover. TENANT TURNOVER COST. This includes advertising for a new tenant, repainting, cleaning, replacing carpet, etc. INSURANCE COST.

If you expect to have high tenant turnover, like next to a college campus, anticipate this to be a significant cost. Insurance on investment properties are typically higher than owner occupied, single family properties. You also should purchase liability insurance which can be expensive. So get an insurance quote on the property instead of basing your expected insurance off of the insurance bill for your house. MAINTENANCE COSTS. It depends on the property, whether you fix some of the problems yourself or hire outside help, and random luck.

This is by far the most difficult number to estimate. So we can' t give you a hard and fast number but we can look into different factors to take into account. * Property Type- When you evaluate different properties remember to take into account the type of property. Decks need constant maintenance. If it's brick you won' t have to paint or worry about wood root. A property with wood or concrete floors will be easier to clean and will not have to be replaced when a tenant moves out. For instance, say there are two properties for sale for 200, 000 and each have a combined rent of 200A property with 2 units and a total of 1000 square feet will be cheaper to maintain than a property with 6 units and 3000 square feet.

Just think about the aspects of the property and their maintenance costs. * Property Size- A smaller property is easier to maintain than a larger property. The larger property will be more expensive to maintain when you are replacing the larger roof, painting the interior walls, etc. If you buy a property 30 miles away, over the course of a year you can spend a decent amount of gas money driving back and forth. * Your personal management style- How often will you do maintenance work yourself vs hiring help? Also, more units mean more money spent on advertising, make- readies, and more appliances to repair. * Property Location- Consider your proximity to the property. For instance, when a unit needs painting will you paint the rooms or hire a painter? UTILITY COSTS.

Hiring professionals is definitely more expensive, but you have to be realistic about how much you will personally do, especially if you are looking at a lot of units. Be sure to check what the tenants pay for and what the owner pays for. In addition, there may be owner expenses like parking lot lights and trash bin service. This includes all the utilities and lawn maintenance. PROPERTY MANAGEMENT COSTS. We personally choose properties that we can manage ourselves. If you are going to hire a property management company, definitely get their rates.

SUMMING THE NUMBERS. This doesn' t necessarily mean you should not purchase the property. Once you add all the numbers up, you often find the property has 0 cash flow or even negative cash flow. There are positive tax benefits to rental properties and depending on your situation, a property with technically 0 cash flow could still put more money in your pocket due to tax benefits. The point here is that if you are buying a property with zero or negative cash flow, it's best to know beforehand instead of after the property has been purchased. Also, if you think the property is going to appreciate in the future, a zero or negative cash flow property could still be appealing.