Sydney and NSW Real Estate Investing have hit many obstacles in the past 24 months. The latest obstacle has changed the ‘way the real estate investor does business.’ Petrol prices are at an all time high in NSW and travelling in Sydney has never looked so expensive! Real Estate suicide is found in prospecting for properties the old fashioned way. The savvy Real Estate Investor would have noted the more intensified utilization of the internet to obtain properties.Real Estate sites such as realestate.com.au and domain.com.au have become house hold names amongst every day Australians. Sure, it’s nice to go to your traditional Real Estate shop front and obtain brochures etc. However, most of these shop fronts have their own websites and many Real Estate companies/agents no longer have shop fronts. Many Real Estate agents run their business and promote their properties totally online.The Real Estate Investor therefore has that option to stay home and search for their properties online. Utilizing RP Data tools and others, research can also be conducted online. Though for a small cost, the real estate investor can have detailed information concerning a particular property without have had to step foot outside or fill up their car with petrol!But let’s take this concept a step further. What has been detailed above is perfectly fine for the average house buyer and the unlearned Real Estate Investor. However, the true Real Estate Investors in Sydney and throughout NSW will not only need to access the real estate agents websites but they will also need to obtain GREAT deals online.This is where the average Real Estate Investor gets into a pickle. Typically, when a website is run by a real estate agent, the prices will be set at a value that realistically is too high for the investor. The investor is looking for “The Deal”, which is normally made through negotiations with the seller and not the seller’s representative. Why so? Well, Real Estate agents want their commissions and ANY creative investment or purchase strategy that the Real Estate Investor proposes – is often frowned upon by the real estate agent.Lease options, Property options, wholesale deals, rent to buy etc. are just not looked upon favorably by the real estate agent as it poses a possible reduction from their commissions … or simply they do not understand the ‘creative ‘ side of real estate investing!Sydney lacks a strong Real Estate Investor community. To be quite honest, it’s very weak. NSW is also run by Real Estate agents or investors entering the ‘coaching’ field. Many will charge for their knowledge, which is understandable … but not really offering a network in which the real estate investor is able to obtain exclusive deals from. Knowledge is power, and I don’t dispute that fact – however there is no denying that an investor needs the great low deal. Sadly the internet will show a lack of Real Estate Networks in Sydney and surrounding NSW.That is where the author has offered his services to the Real Estate Investing community of NSW and Sydney. A very simple concept really. The author is able to distribute great wholesale deals for the Sydney / NSW Real Estate Investor and build a strong Investing community. The best part of this concept is that there is absolutely no cost to any one involved.The aim and goal for the author is to be able to unite Sydney and NSW Real Estate Investors where they have an exclusive place to receive wholesale property deals. These properties will range from a home needing to be renovated (ugly house), nice average house, vacant land for development, etc.Sydney Real Estate Investors will now be able to get a great wholesale deal, see the house or property on their computers, utilize on line tools to check its market value – all from the comforts of home. No more leaving home for the Real Estate Investor.Wow, the rain has hit Sydney and still NSW Real Estate Investors are able to make fantastic deals!
The Jamaica real estate submarketThe general market for goods and service is made up of many submarkets. When left free to operate without private or governmental interference, each submarket and the general market as a whole should theoretically regulate itself by the laws of supply and demand.One of the submarkets of the general market for goods and service is the Jamaica real estate market. While the real estate market differs in a number of distinctive ways from other markets, it acts much like all markets with respect to changes in supply and demand, but with a slower response time. It has the appearance of being a single, simple entity when in fact the real estate market is itself composed of many complex sub markets. This would include Jamaica homes for rent as well. This would be known as a parent category.Real estate is a commodity just as wheat, gold and sugar. By combining the other factors of production with land we can produce wheat, gold and sugar or buildings.Major sub markets of Jamaica Real Estate
Most authorities agree that the five major submarkets of Jamaican real estate are:
1. Residential homes for rent in Jamaica;
5. Governmental and special – purpose propertiesEach of these five categories is further divided into minor submarkets. For example, “residential” as a major submarket can itself be divided into minor submarkets as follows:
2. Suburban; and
3. RuralEach of the minor submarkets can be divided further into single-family and multifamily, which could then each be classified as owner-occupied and rental. The point is what appears to be one big, but simple real estate market is in reality, a complex structure of many individual submarkets, each of which contributes to the overall market.The characteristics of the real estate market
If the real estate market were allowed to operate without any interference or restraint whatsoever, each person could use his or her property in any way that would produce the greatest return. This could result in one person’s use of Jamaican property causing a loss in value to another person’s property. Obviously, we cannot permit land to be used for whatever purpose the owner thinks best for his or her private gain.For example, if you lived in a very fashionable up-market residential subdivision and your neighbor bought two undeveloped lots adjoining your property for use as a pig farm or for a paper mill with its offensive odors, the social costs to you and the rest of the subdivision would far outweigh the private gain to your neighbor. Therefore, the real estate market cannot be permitted to operate free of all controls and restraints.Listed below are five primary characteristics affecting ownership and sale that set real estate apart from other markets.
1. The market is local in nature; the product is immoveable.
2. It is slow to respond to change in supply and demand.
3. There is relative permanence of improvements; land is durable and fixed in location.
4. The market is not organized and is without central control; there is no standard product and no central information.
5. Governmental controls influence the market through zoning, building codes, taxes, etcLocal in Nature – The market for real estate is uncommonly local in nature compared with other markets. The reason, of course, is that land and the improvements thereon are immoveable. For example, we cannot transport sugar cane lands from Westmoreland to Kingston. If we were in the market for tomatoes we could haul our produce to the place where demand might be greatest. However, despite the demand for housing in Area A, we cannot produce an apartment complex or single-family subdivisions on land located in Area B and take it to where there is greater demand.Slow Response – The property market is unusually slow to respond to changes in supply and demand. Very often the number of houses (supply) in an area begins to fall behind the demand, however, since the design, land acquisition, site preparation and construction phases of real estate are so time consuming by the time demand responds the market becomes flooded. The equilibrium between supply and demand is thus destroyed because the supply of the town houses exceeds the demand at the time.Permanence of improvements – The characteristic referred to as permanence of improvements is also closely related to the above characteristics. The typical bungalow-housing unit has a long economic life compared to other commodities. Once we have built a block of offices we are stuck with it when perhaps we could have invested our time and money in a hotel. Therefore, the permanence of the improvements created eliminates many alternatives available to markets.Decentralized nature – Another characteristic of the real estate market is the lack of a single, central exchange for dealing with the real estate island wide. If one wishes to buy 100 shares in General Motors, California, the product will be the same as General Motors, Florida. However, if one wishes to buy 100 hectares of beachfront property in Westmoreland, Jamaica the product will be different in many respects from beachfront property in Portland. This focuses the attention on the two main reasons why there is not a central exchange for real estate.First, the product cannot be standardized. No two tracts of land are the same. Even two lots side by side on a street have different geographical locations on this earth. This concept is referred to as heterogeneity or non-homogeneity.Second, no central data bank or information source tells about all real property in Jamaica. Also, one needs to be careful when using information about properties in one area to assess properties in another. If one wants to know about real property in any location, it is best to go to that particular place and seek local information.Governmental Controls – The fifth and last of the primary characteristics of the real estate market, governmental controls, plays an inordinately important role when compared to other markets. Most people are familiar with direct controls such as zoning and building codes which govern construction and use of property.Governments also exercise indirect controls, such as the monetary policies of Central Government. For example, if Government reduces the overall money supply to slow the inflation rate, higher rates for mortgage bans turn, drives many potential buyers out of the real estate market in Jamaica. This does impact heavily on the drafting of a rent agreement in Jamaica.