Buying a house in Port Moresby isn’t always a cheap and cheerful affair - a statistic consistent in previous Hausples real estate surveys.But this is about to change, in light of the new Valkyrie Estate offering home and land packages at a starting price of K480,000. This may well be the answer to the plight of affordable housing.Let’s take a moment to understand what a home-and-land package is all about. The offer Valkyrie Estate's house and land packages offer a choice of land and a selection of suitable home designs for these plots. This means  you have the freedom to choose the block of land that suits you, and a home design that fits your lifestyle and budget.Rather than buying a house and land separately, Valkyrie’s house and land package simplifies this process by offering both properties in one package. The EstateTo begin with, phase one of this development comes with two land size options: 396 square metres and 450 square metres. Ultimately, the land sales are managed by Century 21, who also arrange inspections for prospective buyers. You can easily make a booking online at valkyrie.estate. Valkyrie is a large housing development in 8-Mile, adjacent to Kennedy Estate. It has sealed roads, power and water supply, with sewage connections to individual titled plots of land. 8-Mile is one of Port Moresby’s fastest growing communities, with schools, medical centres and shopping close by, bordering excellent road links into the city.  The Houses The houses are supplied by Rhodes PNG and come with a variety of designs to suit both lifestyle and budget. Made from a light steel frame with durable composite materials, they are insulated, termite-proof and have a 40 year design life. As with land, phase one presents two and three bedroom configurations and they can be either low-set or high-set. You decide, Rhodes builds. The floor area, on the other hand, ranges from 43 square meters to 86 square meters.   An important element of this house and land package is all home constructions must be undertaken by a professional, bank-approved builder, and this is reflected in the pricing of this package deal. You can easily make a booking online at valkyrie.estate. How to book a home and land package The Valkyrie Estate website gives information about the land and the houses, and has an in-built enquiry form which includes the pricing for the various packages, renders of the completed estate, and walkthroughs of the showhomes.Not only that, you also have the privilege of utilizing:360 tourswalkthroughpricing tablecost calculatorfloorplans To help with your decision before registering your interest, also on the website.Your enquiry will be forwarded to the Hausples team who will confirm your interest and then passed onto Century 21 who will arrange an inspection of the land with you. Plus, you also get a call back from Rhodes PNG to discuss the housing options and a quotation sent to you through your email.If the negotiations are successful, you will be required to write a letter of offer to the real estate agency, who will reply with a letter of acceptance. This will follow a 10% deposit, only for the land.The quotations, on the other hand, together with your letter of acceptance will be presented to your bank, in order to obtain a home loan. Once approved, the titles are transferred to you and construction commences. Typically, it would take between 10 to 17 weeks for a single home to be completed, which largely depends on the type of design chosen.Visit www.valkyrie.estate to find your dream home and make a booking whilst stock lasts!

Every time you find yourself faced with a major decision, do you close your eyes and allow your intuitions to take the lead, or you translate your thoughts into a list of pros and cons?For one, submitting to your intuitions can be a great way to reconnect with your innermost desires. The other is, just when you think logic and common sense are the driving force, emotions set in and take control of the steering wheel.This brings us to the crux of this article. We’ll be looking at the impact of emotions on a significant aspect of real estate: selling.You see, in wine, there’s wisdom, in water there’s bacteria, and in “selling” real estate, there’s “seller’s remorse” - to sell, or not to sell. Seller's remorse is just like a buyer's remorse, only that it's to do with a seller, instead of a buyer. As you read to the end, you will realize the parallelism. So what is it then?To begin with, seller's remorse is all about a homeowner having second thoughts about the whole idea of selling their home, while in the midst of the selling process; worse, just as when the selling process nears completion. Naturally undetected and unanticipated, seller’s remorse happens when it happens. There’s no telling when it will happen, and preparations are only in order when you understand it.Think of it as a dark force working against you. It’s dark, unseen and impenetrable, but when it strikes, it strikes like thunder. And the results are usually undesirable.Homeowners who fit the bill are often those that think they want to - and should - sell their house, eventually doing so without a hint of motivation and/or strategy. After all has been said and done, and the selling process has kick-started with the end in sight, they get this feeling that it was a huge mistake to put the house up for sale in the first instance; this particular moment instantly creates a window of opportunity for second thoughts to set in and build upon themselves, many times distressing, hence the seller’s remorse. Testing the watersSurprisingly, there are occasions where the homeowner puts his or her home on the market "just for the fun of it". Their reason being to test the market; to see how much their homes are comparatively worth if they were to sell it. And once their agent returns with an offer, everything around them seems to fall apart, because it was unintentional, unmotivational, no good reasons to, etc.For the most part, how much the seller wants from the property's sale doesn't really matter at any rate, unless a much higher offer for the property was hopelessly out of the question. Note: Testing the water may be fun and ambitious to the home seller, but it's a pointless move as far as the real estate agent is concerned, especially when you consider the fact that the agent had spent a considerable amount of money and effort towards marketing your home. In addition, the agent will not be earning any commission from this investment either, besides not earning any tangible return when the seller reveals he or she does not want to proceed any further with the sale. Why do you want to sell? To prevent seller's remorse, homeowners' decision to sell their house must come off the back of solid motivations. These motivations will comprise relocation plans, thinking the selling process through, goals, or otherwise solid reasons behind the decision to sell.For those who know their way around this distressing emotion will usually begin with a pros and cons list. In other words, a benefits versus drawbacks table as the way forward in dealing with seller’s remorse. If the benefits outweigh the drawbacks, the selling process should proceed. If the opposite is true, then don’t bother contacting an agent.On that note, a pros and cons list should be drawn up way before you start researching the market and contacting your real estate agent of choice. Grieving is imminentThere’s no shame in crying your last goodbye. It’s guaranteed, natural and accepted especially when you developed fond memories and special bonds with the home itself. A vibrant stream of emotions coursing through your veins as the closing date is at hand are rarely abnormal, but are controllable when you understand and anticipate seller's remorse. After-sale strategyStories come and stories go. Stories heal as well as break us. But no story will ever be yours truly than one with a sad ending - like another ‘fault in our stars’, or ‘blue valentine’, movies with an almost realistic touch that seem to breathe across our hearts. This resembles your last walk out the front door of your home, for one last time; signing off on an old story and looking forward to writing a new one. And that’s the thing, really. If you’ve got something to look forward to, after the sale is closed, then relocating amidst the memories and emotional attachments you have with your home may not be that dramatic after all. This is why it’s important to have an after-sale strategy in place to look forward to. Plan a trip home, or a long trip overseas to visit wantoks, so that you don’t have anything to fall back on when your thoughts try to remind you of everything former.Better yet, working with an experienced real estate agent comes with identifying the potential issues that might just lead to a seller’s remorse. Bottom lineBoth emotion and logic have an important role to play when it comes to making positive decisions - on your part. Imagine if you understood where exactly your emotions come from, you'd be able to better manage your responses, while being totally aware of how they affect your thinking and behavior. In the end, find yourself making well-informed decisions, despite seller's remorse hovering over the horizon.DisclaimerThis article is meant for informational purposes only. Hausples digs into the details of a specific topic and teaches its readers all about how the real estate industry operates. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Embrace peace, privacy and charming hillside views from your dedicated balcony at Venezia Estate. Just minutes from Jackson’s International Airport and the 7 Mile CBD.Whether you work at Air Niugini Haus, DHL, or Tropic Air, or even taking your imaginations for a test flight on the airport’s runway, Venezia Estate is within reach, among meticulously kept gardens with beautiful blooms all year round.The Estate presents 56 elegant apartments on Kittyhawk Street on the hillsides of Jacksons Parade near the Gateway Hotel.Designed for transiting professionals as well as families, these spacious rectilinear apartments aren’t your average pads offering modern luxury conveniences that live up to their purpose. They emphasize space, white finishes, and a trendy outfit of designer choice white goods and spotless kitchenware. Floor PlansGenerously sized open plan one or two bedroom apartments are available that will suit your lifestyle.Comfort is king at Venezia Estate, with modern, quality fittings. large tiled floors, air conditioning, energy-efficient kitchen appliances with dreamy hillside views. The residential estate has been intentionally designed for ultimate comfort, tranquility and wellbeing. Amenities Top-rate, upscale, opulent – there are many words we could use to describe the amenities offered at Venezia estate, but even those don't convey the amazing quality they have on offer.For your stay at Venezia, you have unlimited access to:Indoor air-conditioned sports complex with badminton court; Half sized basketball court;Fully equipped gym;Modern 100pax restaurant - style dining room; Fully equipped industrial kitchen; Air conditioned entertainment room with ping pong tablesCommercial laundry room;2 swimming pools with bbq areas, andClassical karaoke and TV room.Beyond the main entrance of the Estate, residents can expect an air teeming with excellence that exudes some of PNG’s finest constructed buildings and hospitality.  NeighborhoodA community made of corporate managers, expatriatess and prominent citizens is a community built with purpose, and that’s the type of neighborhood you can expect at Venezia Estate. Imagine YourselfPicture yourself availing the pulse of Venezia Estate on your private balcony. Tour the amazing facilities, including essential services including CCTVs, 24/7 control centre, electric perimeter fencing, back up water and power supply and 24 hours security presence.Enjoy refreshing ale at Jacksons Bar, or pick up some groceries at Stop 'N' Shop Express inside Airways, yes, everything is close and easy. Venezia Estates is also a stones throw from the busy corporate and government precinct of Waigani via the Kumul Flyover.Venezia Estates meets all your expectations for safety, convenience and, best of all, giving you a true home away from home feel.Contact Hausples now on 74700243, or email [email protected] and/or [email protected] to book a private tour.

We've already heard about the government's proposed Strata Title Bill 2020, back in February of this year. Correctly, it is a completely new concept and one that requires a good amount of information and education on our part as a country.Although the topic deserves an in-depth consideration, this article, however, will only touch on the general aspects of what it is and how it works. Further insights will follow a future article in due time.Now, let's consider what a strata title is all about from a general perspective. What is a strata title?A strata title - first conceived by the state of New South Wales in 1961 - is a form of title ownership or legal document designed for multi-layered apartment blocks and horizontal subdivisions with common or shared areas, when legal ownership of a single apartment block (or lot/unit) became a cause for concern. Other countries that have adopted this system (or a similar variant) from Australia include: Canada (Alberta, British Columbia), Fiji, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Africa and the United Arab Emirates. Nonetheless, when you buy into a strata title scheme, you're immediately engaged in a dual-column responsibility list: partly to yourself, partly to the body corporate or owners association. In other words, you're independently responsible for the upkeep of your newly owned apartment or unit, while at the same time sharing responsibility in managing the common areas as prescribed by the strata title scheme.To elaborate on 'partly to yourself', let's consider a simple example; say a power outage occured in your unit and your freezer became faulty. All things considered, including your shared responsibilities, you would think that the body cooporate/owners association would come to your aid. Unfortunately not. The onus falls solely on you. However, if any part of the common area is damaged, every unit owner including you will share in its maintenance or replacement of that particular amenity. This is what is meant by shared responsibility and, combined with the responsibility you devote to your unit, creates the essence of a strata titled property.Now, assuming that the proposed Strata Title Bill 2020 has been passed, and several multi-layered apartment buildings have registered under the title scheme (strata), they immediately become "strata-titled properties".An important factor to note is that the flexible nature of a strata title means not only residential properties can qualify as strata titled, but also serviced apartments, commercial properties, retail and even mixed-use premises can register. What is a strata title compared to a company title?The governing policies and regulations of a company title requires that a company must own a building of units, as well as the land on which the building stands. The incumbent in this case is known as a shareholder, where he/she isn't entitled to any real estate. However, he/she (the shareholder) does have - by virtue of owning one or several shares in the company - the right to occupy a defined area or unit in that building. Unlike owning a title to a specific subdivision of the building, as with a strata title, a company title is a reflection of owning shares in a company. These shares will represent the unit(s), car park(s), and everything else specified by the strata title as being owned by you. Using the table below, we can easily outline the differences between a company title and a strata title. Key DifferencesCompany TitleStrata TitleEverything operates through the Board of Directors of the Company TitleThe directors don’t have to consult shareholders, even on big issues.A company’s constitution can sometimes be onerous and even arbitrary and can vary significantly between company titles.The company’s constitution can limit who can buy into the property, whether the property can be rented, what changes can be made to the property.Should renting be permitted there can often be limits on the length of lease term and the tenant will need to be approved by the board of directors and be subject to an interview.A company’s constitution under some circumstances can revoke a shareholders shares or force the sale of shares and right to occupy the property.It can be difficult to obtain finance from banks when buying into company titles especially in small blocks and where finance can be obtained there are restrictions on (LVR) Loan to Value Ratios.It is considered to be a fair, transparent and equitable systemA plan known as a Strata plan clearly defines the unit or lot ownership and which parts are common propertyEverything operates through an entity called the Owners Corporation.All owners get the right to vote on bigger decisions at either an Annual General Meeting or Extraordinary General Meeting.The Strata Title is governed by a legislation (e.g., The Strata Schemes Management Act 2016, etc)The building also known as a Strata Plan will have clear defined regulations known as By-laws. What is an Owners Corporation?Also known as a body corporate, an owners corporation is a legal entity usually made up of individual lot/unit owners (not tenants), with shared responsibilities in managing and maintaining the upkeep of common areas that come with a strata titled property.Because of its flexibility (strata title), major developments, especially those that offer a mix of both commercial and private lots/units, may find themselves in need of multiple committees, especially when responsibilities and costs are numerous and must be shared effectively.Other owners' corporations may even create a position for an owners corporation manager to solely handle its administrative tasks.All in all, the owners corporation begins with every lot/unit owner elected to form a committee (hence the name), so that certain decisions can be easily delegated to them. Main responsibilities of this legal entity are:Upholding all the rules and by-laws covering the property;Managing insurance for the building and common property, and administering the common funds (the fees paid by lot owners);Maintaining and repairing the common property;Keeping records, such as budgets, financial records, minutes of meetings, and a register of lot owners and committee members (if a committee has been elected). The body corporate must make this information available to owners if requested;Handling complaints or disputes between individual lot owners, on issues such as noise, car parking and anti-social behaviour, and enforcing by-laws. Your responsibility as a lot/unit owner?The moment you buy into a strata title scheme and eventually become a lot owner, there are certain key aspects you're bound to run into. What's more, you will find that this new concept will contradict everything you'd normally experience, if you owned a stand-alone house on an individual block of land. As an individual lot owner, your responsibility may revolve around the following:Obeying the by-laws set by the owners corporation you've become part of. This may come in the form of restrictions on where you and your guests can park your vehicles, or where your specific clothes line is, etc.You will be invited to take part in annual general meetings, where office bearers are voted, committees formed, and major decisions are made on account of everyone present. However, attendance is not compulsory, and as a lot owner you can appoint a proxy to attend the meeting on your behalf.Notify the owners corporation if the lot ownership has changed.You will be required to pay all your levies and prescribed fees on time, which you will have agreed to. Levy fees, in this regard, are set aside in a sinking fund to cover for major or unexpected repairs and maintenance on the property. Worthy of note, apart from the shared responsibilities, you're culpable to any and all issues that arise from your unit or lot, including repairs and maintenance, and even upgrades. You may even consider a content insurance, be that as it may, because the insurance that the owner's corporation opts for will not cover your contents. The pros and cons of a strata title schemeHaving come this far, you're probably wondering if a strata title is right for you. First things first, see yourself as a lot owner, then imagine the associated responsibilities, which should help you determine if a communal-style living is what you want. After all, when you pray for rain, you have to deal with the mud, too.An excellent idea would be to do an in-depth research on the strata titled property you're considering, as well as seeking professional advice before buying into the scheme.To help with your decision, consider this list of some customary pros and cons associated with a strata title scheme: ProsNormally, each unit, lot, apartment and townhouse under a strata title will be cheaper, on average, than buying a stand-alone house. This way, they're more affordable whilst on the market, or allow you to buy into an area which you would have otherwise considered economical.Most likely, the general upkeep of common areas won't be too much of a burden for you, as this would be the main concern for the owners corporation. More than 90 percent of your stress will be about your lot or unit, in which you're solely responsible for.You may be allowed to access the facilities, such as swimming pools, gym, car parks, and kids playground among others, without having to worry about how much you will pay for the entire cost of purchasing and maintaining these facilities on your own.Security is extremely effective compared (especially apartment buildings with locked front access or gated complexes) to a stand-alone property. ConsYou're required to pay a strata levy (sometimes called owners corporation fees), which may appear expensive, mainly if your lot or unit is found in a strata titled property that comes with premier facilities such as lifts or a roof garden.Depending on the locality and how the strata scheme is interpreted (which shouldn't be harsh, though), you may find that there are certain restrictions in place. For instance, there may be a limit to certain pets you can own, or you're not to do unmatched renovations on the property, etc.Decision-making in a strata title scheme can be an arduous process, and most often than not your idea or preferred course of action may not always be favored by other committee members.Depending on the building type and the varying room sizes that come with it, it's not uncommon for all lots or units to be one and the same in value, so you may find a restriction on doing upgrades to yours within the complex. The bottom lineFor so long the endeavours of affordable housing seemed implausible to the point of earning a mythical status. But this is about to change. With the inevitability of PNG’s very own strata title scheme, modelled after Australia’s strata title legislation, Papua New Guineans can find comfort in the fact that affordable housing and property ownership might just become a reality - from one general perspective to another, atleast.  DisclaimerThis article is meant for informational purposes only. Hausples digs into the details of a specific topic and teaches its readers all about how the real estate industry operates. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

You see, when you set the conditions for a culture to breath and evolve in a certain way, it will eventually develop itself from inescapable ideologies, influenced by circumstances that are easier to predict and anticipate - take home buyers for example.So, with due respect, this post is for home sellers who are in the process of getting their house on the market, and those who are still waiting for that elusive successful sale. Now, if you know your ideal buyer back to front, meaning you're in-tuned with what they want and what makes them tick, you've scored yourself a reasonable ground for a competent shot at a successful home sale. This brings us to the following metrics by which a successful sale can be measured: 1. Great locationIf your home is found in a prime location, you have ticked off one of the most important reasons why buyers fall in love with a home.In a different shade of blue, what if your home is in an unsavory location? What will you do to justify the 'must-own'? The answer will help you identify the sweet spot with effect, and guarantees a successful close.Additionally, it’s the values of your home  that you need to communicate and further emphasize on - enhanced by relevant tools and techniques of the trade.In other words, you need to identify the unique features of your home (big yard, a backdrop of pure greenery, great fireplace, etc) and perhaps the other potential conveniences your home has (separate home office space, study room, etc).Don’t forget the highlights of the surrounding, such as schools, transportation, sports center, and everything else that gives the location some appreciation. 2. Best value for the pricePricing plays a major role, too, in why buyers fall in love with a home. Don't forget that overpricing kills the vibe and rarely fails to extend a home's existence on the market. And if a quick sale at an affordable price is what you're after, then this is one mistake you'd want to avoid.Pricing your home correctly, undoubtedly, will make you a happy seller moving forward. 3. Curb appealPsychologically, a human being - based on first impressions - will make up their minds within 8 seconds, while in a decision-making process; likewise a home buyer.And if there's anything else that expresses that which cannot be said, on which it is impossible to be silent, apart from music, it's curb appeal.A well-kept lawn, neat flower gardens, and an ergonomically attractive front door - things that are within your leverage, synthesized with an elbow grease or a professional landscaper, and you have yourself a chair at the closing-table.You see, it goes without saying that you don’t get a second chance to make a first impression. So make it count with the curb-appeal.What’s more, a beautiful, well manicured exterior will tell a buyer that the home's interior is the same throughout. So be positive, strive for the better, and your efforts will be reflected in the curb-appeal. 3. A light-filled, spacious and airy interiorThe moment a potential buyer steps inside a home for sale, and instantly feels a serene, warmth and comforting vibe - you can rest assured that this feeling is bound to last for some time, and that's your first leverage on first impressions.A home that's clutter-free, inviting with light colored walls and natural light streaming through the windows - that's what buyers are after.Home buyers typically purchase with their hearts, and if you're able to tap into that psyche by giving them what they want - they'll be eating out of your hand (pun intended).So, if your house for sale needs some TLC, give it to it. Imagine if you were too lazy to attempt some much needed DIY's, do you think that potential buyers won't feel the same? Remember what Paulo Coelho said, "When we strive to become better than we are, everything around us becomes better." Our personality shows in what we do. If you're lazy, it will be reflected in both the interior and exterior of your house. If you're aiming to be the best one on the block, likewise it will show in the curb-appeal and everything in between. So don’t give up. If a successful quick sale is on your agenda, then you have to be prepared to do what it takes to achieve it! 4. Emphasize the “wow” factorsThere are certain words in real estate marketing that are designated for real estate listing descriptions, in order to help sell properties faster and to which they did efficiently.Listings with a title that involves a combination of an adjective and a noun - to give it some juice - such as a 'quartz countertop', 'island prep sink', or a 'wooden front door' returned with impressive results, than those that lacked these elements.You may have one or more of these features - that's wonderful. But, there's always a 'but', if you understand them to the point where you can easily effortlessly call attention to them, you've closed the sale, period.All in all, the list of “wow” factors does not stop here. There are other attributes of the house that are just as likely. You just need to uncover and bring them to attention. If you have hardwood floors covered up with wall-to-wall carpet – you’re hiding a potential star of your home. Built-ins are another feature that home buyers want, and more. Again, your job is to figure them out and shed light on them. 5. Updated to excellent conditionWhen a prospective home buyer finds a house clean - up close and personal - without any signs of deferred maintenance, it tells the buyer that the house is near to one's heart, and may just lead to an offer at that instant.Remember, buying a house is one of the biggest financial decisions in one's life. So, be smart and ensure that all potential problems are attended to and rectified before the home inspection. Unless you want the inspection to conclude halfway, without the buyer ever making it past the dining room, your things-to-do list before the inspection should be completely ticked off.So, take care of any problems in your home. Fix the leaky faucet, upgrade what needs to be upgraded. Your buyers will appreciate it.  If you’re not sure of any issues, it’s a great idea to have a pre-inspection done, just to be on the safe side. 6. Capture the buyer’s heart with a beautiful home stagingOf course, this is one of the main reasons why a buyer will buy! When a home is staged it’s designed to sell – not to be forgotten. We are not talking about decorating…we are talking about being strategic. A professional stager will zero in on what the target buyer in your area is looking for. Making your home memorable and appealing to that market should be high on your priorities list.  Begin by using art, color and lifestyle touches to attract a buyer’s eyes to the key features and assets of your home – to make sure that the buyer notices and remembers them. Help maximize the spaciousness and bring out the intrinsic beauty of each room to create the perfect package. Staging, coupled with professional photography, can attract far more buyers to the home in those crucial first weeks while on the market. More traffic = greater possibility of offers. There’s a reason why staged homes sell quite faster than non-staged homes. Add to that a great real estate agent who is a savvy marketer and you have the formula for a very fast and profitable home sale.  DisclaimerThis article is meant for informational purposes only. Hausples digs into the details of a specific topic and teaches its readers all about how the real estate industry operates. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Pre-qualification and pre-approval are real estate financing terms that are synonymous with the loan process, and each varyingly punctuate the level of commitment a lender has with a customer/buyer.Unfortunately, at least a majority of us here in PNG aren’t really intune with the meaning of these concepts; either we’ve heard about them but never gave much thought to their differences, or we just couldn’t make time to understand their existence and how they affect the home buying process.Nonetheless, in this article we’ll document the differences between both terms and focus on their appropriation in a home buying process. The thing to keep in mind is that a slight misunderstanding of their differences can cause the home buying process to stall. So the aim of this article is to make sure you understand both terms to their core, and when they’re used interchangeably in a home buying process.  Pre-qualificationThe prequalification, more or less, immediately comes into view the moment you find yourself in a home buying process.It's not uncommon for many home buyers to avoid a loan/mortgage with an overwhelming intention to buy a house. Once the inclination is there, getting a loan becomes a prerequisite in the home buying process, because you will want to know if you're eligible for a loan, and what type of loan will you qualify for, respective of your credit history and financial status. By the rights vested upon lenders, once your loan application has been submitted, they (lenders) will proceed to clarify the following questions:How does your credit look?How much house can you afford?What type of loan will you be using? On average, your credit history or credit rating score is the overriding factor in this story, as it will help determine your eligibility to get a loan, what type of loan suitable, or neither; hence, your strong advocate or your nemesis.Mind you, the lender will pull your credit history/score to pieces, to weigh your eligibility, and a handsome score of say, 700 or better, will go as far as qualifying you for the loan in question. It’s also at a position where the interest rates will gradually shift-shape for the better. When all is said and done, you will find that a conventional loan normally attracts huge down payments. This is why loans such as BSP’s First Home Ownership Scheme are popular among those borrowers who have grasped its purpose.  Loan LimitsIn hindsight, with every other loan like the FHOS, there are drawbacks. For one, they have limits, and for the other, they aren't suitable to all property types and developments. For instance, Anitua properties are FHOS approved, compared to several other developments.But this shouldn't be a major concern, although it's worth the mention, because your real estate agent or lender will have you covered in terms of professional advice. What should be of importance here is your understanding of prequalification.The point is each loan type, First Home Ownership Scheme or not, comes with individual, unique limits; nonetheless, prequalification remains a force to be reckoned with in each case. Your cognizance of these limitations will be clear the sooner you reach the prequalification stage.Being pre-qualified means knowing:What type of loan are you going to get? Traditional or FHOS?How much cash, if any will you need to put down.What’s the plan for paying closing costs?Any limitations on the type of property you can buy.The next step that’s readily on-hand to greet you in this story is the pre-approval. But before long, you must begin your journey with properties that directly or indirectly open to the type of loan you’ve pre-qualified for.For instance, once a home seller accepts your offer, the property in question is taken off the market; provided there’s proof of your pre-qualification, because anything less will not render the sale close. In other words, if the lender disqualifies your loan application, the seller will not take the house off the market. However, this is also one moment where the seller can easily become emotional (seller's remorse), and may actually ask to keep the earnest money, instead. But not unless the agent, acting on behalf of the buyer, effectively resolves this problem and ensures the earnest money goes back to the buyer. The best practice, then, is to take pre-approval by the horns. Pre-approval Pre-approval is the stage at which you've submitted a detailed loan application, and the lender has:Sighted your applicationAgrees with what you’ve providedNot yet given the full approvalFor the most part, a pre-approval paints a clear picture of the maximum funds available for the taking, helps you negotiate with certainty, and if you're involved in an auction, you'll be bidding with increased confidence.However, the surprising thing with a pre-approval is that it’s not a necessary evil in a home buying process. But it does make life easier for the borrower, because of its power to bring you closer to your new family home, or dream investment property. How Pre-approval worksPre-approval is the lender’s commitment that you qualify for a particular loan type and amount based on your income and credit.If everything looks good, the lender will generate a pre-approval letter and a “Good Faith Estimate of Settlement Costs”. These are important documents to have when shopping for a home as they prove to both sellers and their agents that you have the means to buy their house. These documents are generally good for 60 to 90 days.The approval letter is a letter from the lender stating that based on the information they have, you qualify for a loan. This letter also gives the amount of the loan you qualify for.A good faith estimate is a standard form that outlines and discloses the fees associated with your loan. Lenders are required to provide this document.At this point, you are “pre-approved”. The lender waits for us to send them a contract for a particular property. At that point, they start to work on getting a full loan commitment. Full Loan Commitment Requires:Contract on PropertyAppraisal on the propertyIn some cases, the Inspection ReportUpdated paycheck stubs for the months before closing.Bank statements for the months before closing. Pre-approval is the lender’s way of saying they are willing to loan this person X amount of money. It now depends on the house they want to buy. The appraisal, and in some cases the inspection report of the property, will determine if the lender is able to make a full loan commitment to the buyer. In other words, are they loaning on a good investment? If the buyer defaults and the lender has to take the property back, will the lender be able to resell it for the amount they loaned on it?No matter what type of market, it’s always wise to start the home buying process with prequalification and preapproval. This path gives you, the buyer, more leverage.  DisclaimerThis article is meant for informational purposes only. Hausples digs into the details of a specific topic and teaches its readers all about how the real estate industry operates. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Buying or selling your house are among some of the most life changing moments in your life. And each activity bears all the fundamentals of a process, rather than an event. As individual as they can be, both buying and selling are distinguished processes that involve a lot of negotiations, rightfully in a real estate transaction:Negotiating an offer, with the hope of a contract both parties find a win/winNegotiating on multiple offersNegotiating on the response to a home inspectionNegotiating on the results of an appraisal that didn’t meet expectationsNegotiating on other contingencies, like well and septic, or pest inspectionsEssentially, remarkable real estate transactions are a result from well-handled negotiations. The best negotiations are a win-win for both the buyer and the seller. Negotiating in real estate cannot be compared to any other transaction. Buying or selling a property is more or less the largest financial transaction many homeowners have come across in their lives. It's a slipstream in itself, and how you go about it will determine if you'll be dragged under or not. One way of better understanding this process is to compare it with the processes of buying a vehicle, or a kitchen appliance such as a fridge. The drawback from these processes is that they are prone to emotional attachments, thus, the need to negotiate devoid of emotions.It doesn't really matter if you're trying to buy, sell or rent a property, you need to be on your toes if an excellent outcome is what you want. That means your goal has to be at the top of your mind throughout the entire process.  Allowing this situation to go off course will only return tenfold as your nemesis. The wisest thing to do is to aim for a win-win, when everyone involved will be aiming for what's most important to them. Real Estate Negotiating 101Let's look at some general tips that may just be applicable to both a buyer and a seller: 1. Leave no room for emotionIn reality, home buyers buy emotionally; of course, you can't buy something you don't LOVE or have any emotional affinity with it. Yet, there's always a time and place for everything, and emotions are not excluded. During negotiations, it's imperative that you keep your emotions in check. Rational minds make good decisions, and that's where you want to be. The opposite of this frame of mind only leads to disappointing results, right after the negotiations have concluded. 2. Never consider offers guided by your emotionsDon't let your emotions guide you when considering offers; selling your house, for instance, can be highly emotional because it is your property, and you've imbued your feelings into it overtime...it's your nest, your sanctuary, no doubt. But you've decided to sell it and so it is now a thing for business transactions, and should be seen and treated that way till the close. If your agent informs you that the buyer has found some issues with the kitchen or master suite, to justify their lowball offer, don't be upset.  Rather, look on the bright side; the buyer's a willing purchaser, and this may be a negotiation tactic, so respond in kind. 3. Creativity doesn’t wait for perfect momentsOnce an unacceptable offer reaches your table via your agent, don't waste time crying over spilled milk. start asking questions to help you identify what's most important to this buyer, so you put yourself in a much better position to meet those needs. You may, in fact, find out that this particular buyer needs to move houses quickly, which gives you a window of opportunity to remain firm on your price and instead offer to close quickly. The key to successfully negotiating a sale is to remain flexible and open minded. 4. Decide beforehand what terms are most important to youBefore entering a negotiation, you should already have in mind what terms are of high priority to you. For instance, if price tops your list of priorities, it may be best to remain flexible with the closing date, or other preferred terms of references; even better, if you're working by a timeline and you need this sale to close swiftly, then timing will be at the top of your list. 5. Flexibility and open mindedness make an excellent teamIt may be better to set baselines, but it's more better to remain flexible with an open mind. This means unmasking the outcome most dear to you, and translating that into a priorities list from most important to least important. When an unforeseen change pops up, such as an issue arising during a home inspection or valuation, where its value undermines what you've anticipated, you won't be offended because you're well prepared.  It works both ways, and when a seller and a buyer are in negotiations, each with this frame of mind, everyone wins. 6. Never shy away from renegotiationsDon't take offense on offers or counter-offers personally. Because once you enter a negotiation with a narrow mind, you'll be offended by every proposition that comes your way, with respect to a lesser value than what you believe your home to be worth. . Instead, try to have a creative approach to everything. That way, you may effortlessly realize that not all buyers or sellers know you personally, so such an offer isn't intimate, but strictly business.Statistics have shown that nine times out of ten, the valuer (also known as an appraiser) usually has the last say as to what the property’s value will be. Now you see why being flexible and open minded are strongly advisable. There really isn’t any ground to turn a counter or unacceptable offer into a big deal. One second is a lot of time, if you’re a creative thinker. The overriding objective of any negotiation is to end up with a win-win situation for all parties concerned. If both the seller and the buyer are each able to get the most out of the negotiation, it will be a bright sunny day for everyone. Your agent’s background in negotiationsYour agent, whether buyer's, seller's, or simply listing agent, must be an expert negotiator which is typically in harmony with experience.But there are those who are born with this skill and ability. Either way, you must make sure your agent has a solid background in negotiating, and therefore can negotiate successfully on your behalf in a competitive market.  If you're still unsure how to discern whether a real estate agent can pull all the flying colors in a negotiation, consider referrals. Ask people you trust about an agent they may know who is adept at negotiating, and work from there.You wouldn't choose a professional in any field without a referral, so why should it be any different when buying, selling or renting your house?DisclaimerThis article is meant for informational purposes only. Hausples digs into the details of a specific topic and teaches its readers all about how the real estate industry operates. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Earnest money is a deposit that a well-intentioned buyer makes to a seller, in good faith that is, basically to buy a house. Although it may look as if it's an actual down payment, it's not - and this is where we must be able to differentiate down payment from good faith money.For the sake of simplicity, in PNG context, earnest money can be compared to what is known as “tea moni” or an engagement pledge between a boy and a girl in most Papua New guinean culture and tradition.  For instance, when a boy and a girl have made plans to marry, traditionally, the boy will offer the girl’s parents or immediate family some form of guarantee that he will marry the girl. This can range from packets of cigarettes and bags of betel nuts, to pigs and garden foods, accompanied by cash and other items of value such as several cooking dishes, kitchen utensils and the like. The occasion is usually low key, compared to the actual bride price ceremony which will happen later. This in mind, one can easily understand the purpose of the earnest money concept in a home buying process. On the whole, earnest money can also be considered as a deposit on a home by the buyer in good faith; hence, another way of saying an escrow deposit. As an escrow, earnest money begets two major elements which are:A binding contract/purchase agreement between the seller and buyerThe conditional delivery to an independent, or better said, a neutral third party of an instrument or item of value, befitting the scenarioThese two elements, separately, weave differing competing threads of narrative and instruments up until the end. Although these parts may vary due to your situation and the real estate professionals you’re working with, they’re as important as the closing itself.Among these threads is earnest money. No matter how reserved-and-behind-the-scene earnest money can be, it can make or break the escrow, hence, the closing process. Depositing earnest money plays a significant role in the home buying process.Sometimes referred to as “good-faith” deposit, the sole purpose of earnest money is to offer a piece of mind to the property seller that the buyer is in earnest, and it will help fund his or her down payment.Usually in the form of a check, earnest money is cashed and held by the neutral third party in an escrow account - which resembles a trust account - with what is known in real estate as a title company, or an escrow broker’s account. Once you, as the buyer, deposit the money into escrow, the brokerage gives you a receipt - so your deposit is not in vain.Supposedly all is smooth and without bumps, the buyer's good-faith offer is accepted by the seller, and there are instances where the earnest money amount can be more than enough to offset not only the down payment but closing costs as well. As it stands, earnest money keeps on with down payments and closing costs beforehand. The best part about it is that if a buyer happens upon an issue with the house, and decides the issue is intolerable, earnest money can be refunded. What is the required earnest money amount?How much the earnest money amount is, will normally reflect factors such as seller's requirements, policies and limitations in each province, real estate agent recommendations, and the current market trends.In some countries, however, the average earnest money amount is represented by 1%, or 2%, of the total purchase price of the house. Again, this will depend on the factors highlighted above. So, if a house is on sale for K400,000, example, then the buyer’s earnest money deposit would be between K4,000 and K8,000 (0.01 x K400,000 or 0.02 x K400,000). And where market trends dominate the overall impact on this average amount, you will come across corresponding effects like a slow market requiring a little less than 1% of the earnest money to be deposited. While a high performing market that has houses selling fast, deposits of 1% or 2% earnest money is not uncommon.In essence, the tradition of earnest money dictates that the bigger the earnest money amount deposited, the greater the chances of you winning the bid on the house in question - in a way, that is. In fact, In such a scenario, the seller will be coerced by the circumstances to negotiate a little bit more than what you've already given. But there's always the common courtesy of being mindful, as you do not want to put more than what you should be putting. Your earnest money deposit must serve its purpose. Otherwise, putting down a huge sum of deposit and losing its use for weeks or months on end, before the purchase contract closes is a misrepresentation of its true purpose.In the ensuing course, you may end up getting some paperwork done for your lender, which will compensate for a strict verification of the source of the earnest funds, when a large deposit is involved. And it won't be an issue if you're able to prove that you've been in possession of the funds for at least 60 days, or more. When is the ideal time to make an earnest money deposit?Depositing earnest money enters the scene immediately once the buyer's offer has been accepted by the seller, and the purchase agreement has been signed by both parties. Who maintains the earnest money deposit?The purchase agreement will stipulate this, and the holder usually varies by terminology and from country to country. Some will mention “title company”, while others will indicate a real estate brokerage.During this time, it is crucial that you make a comprehensive credential check of the title company or real estate broker. The idea here is to verify who will take care of the funds, and that they will be held in an escrow account. It is also advisable that you never give the seller your earnest money; because if things go wrong, chances are you may never see your deposits again. Rightfully preconceived, your earnest money is meant to be held in an escrow account until the sale of the home reaches its final stages. Upon fulfilling all obligations tied to the purchase agreement, the earnest money is released from the escrow account and divided between your down payment and closing costs. Can earnest money be retrieved by the buyer? If the contractual agreement is unsuccessful, in the sense that either the buyer or seller fails to uphold their end of the bargain, a small cancellation fee will be deducted from the deposit. The rest will remain in escrow.Based on the terms and conditions stipulated in the purchase and sales agreement, the neutral third party will typically determine whether or not the buyer can have his or her deposits refunded. Experienced buyers will have this in mind when going over the agreement with the seller. But things are said to get better only when the agreement contains what are known as contingency addendums, which depict how refunds will be handled. For instance, an inspection contingency protects the buyer's interests during an inspection, should he or she points out an intolerable issue, while a financing contingency ensures that the earnest money is refundable if the buyer is unable to secure financing from a lender. Even with a title insurance.Worthy of consideration, pre-approvals by lenders don’t always guarantee a favorable mortgage rate that the buyer can afford. There are times the lender will stop half way because the appraisal or valuation amount is less than the purchase price. At this stage, a standard contingency will normally give buyers an insulation with the legal right to renegotiate the purchase contract, and get back their deposits.As we type off here, we’ll leave you with this simple advice: Win if you can. Lose if you must. But never quit! DisclaimerThis article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

There's quite a number of moving parts to go by, when buying and holding a property. This typically leads to the question, "where do you even begin?"If you're a newbie property investor and you're wondering what success looks and sounds like in real estate, start with the 1% rule; it's your best foot forward. But here's the catch: there's a time and place for everything and it also applies to the 1% rule. For starters, this rule of thumb in real estate investing follows a simple calculation process, and what one would like to call a “metric baseline”. It comes with the added advantage of giving you a good idea of whether or not a rental property is worth your investment.This in mind, we begin part one of this two part article covering:How the 1% rule can help you pilot the property evaluation processWhat the 1% rule is all aboutPutting the 1% rule into perspectiveThe importance of the 1% rule in evaluating investment propertiesExamples  The 1% Rule Can Help You Pilot The Property Evaluation Process As a first time real estate investor, your goal may stem from your desire to maximize your cash flow, create room for passive income, establishing a property portfolio, or become financially independent, or an integration of the whole lot. Regardless, they're achievable and, at best, require a great blueprint to reach reality. This is where the 1% rule comes into high gear.For instance, say you found yourself with a buy and hold property purchase, the next phase in your decision should be all about the 1% rule. The math behind this metric will certainly set you on the path towards milk and honey. Even though it is wise not to rush into a deal that solely revolves around the 1% rule, by and large is an excellent screening tool for real estate investment deals.The 1% rule, in general, saves you a lot of time and money when analyzing investment properties. What Is The 1% Rule?This is a simple investment calculation that's designed to propel an investor towards an inclination, resting on the premise that the property of interest has the outright proclivity to generate a gross monthly rental cash flow no more than 1%. This figure will reflect the total purchase price. Some investors, however, have the habit of including upfront costs of renovations in the equation, and it's not an issue, really. In fact, it's advisable.This criterion integrates the logic needed to determine if the projected gross cash flow is high enough to account for monthly expenses, at the same time offering the investor a golden dish of positive cash flow. Bringing The 1% Rule Into Perspective To make clear what the 1% rule is all about, consider the following example where the asking price is K350,000. What you want to know is if investing in this property will bring you a handsome ROI, through analyzing the monthly rental cash flow. Purchase Price x 1% = Monthly RentK395,000 x 0.01 = K3950 per monthNow, depending on your expected forecast, in this scenario your monthly rental income will be K3950.  From the example, you can see that this baseline calculation is a starting point analysis that gives an investor the room to decide if the property analyzed makes sense, and if further analysis is required.Example 1 - A Property That Meets The 1% RuleA newbie investor looking to establish himself in real estate is considering a property going for K250,000 (an assumption). The pull factor in this case is the property's condition and the neighborhood it is located in, which adds up to a reasonable K2,500 a month.  This indicates that not only has the property passed the 1% rule, but also incites further evaluation just to ensure it bears all the markings of a good deal.Example 2 - A Property That Does Not Meet The 1% RuleAs much as the investor would love to invest, the cap rate is sadly low at K1,500 per month. This means that this property does not pass the 1% rule, which is K5,000 a month, thus, not a worthy investment in that part of town, because of the fact that its monthly rental income is below K3,500. (K5,000 - K1,500).The Importance Of The 1% Rule In Evaluating Investment PropertiesInvestors evaluating buy and hold properties such as single-family homes, duplexes, and triplexes etc., will normally begin with the 1% rule which puts them on the path not to righteousness, but to success and are justified by the following reasons: 1. The Starting Point For Evaluating Buy And Hold PropertiesThis particular rule of thumb in real estate investing serves as a gateway to analyzing and distinguishing an investment property's financial risk from its profit-making potential. Executed correctly, the 1% rule can result in deals that are streamlined, efficient and profitable in all respects. In the process, investors will also discover that they can easily eliminate properties having the characteristics of low cash flow potential.For instance, a new investor finds himself with twenty properties to view. He applied the 1% rule calculation and was able to determine which ones were worth the hassle, in no time.He now has enough time to go through those that are worth his time and investment intentions. 2. Determines if there is a Baseline Cash Flow that Makes SenseWhile a handful of factors fall in line when calculating the cash flow of a buy and hold property, the 1% rule turns out to be the consummate plateau on which to determine if the cash flow - no less - makes sense ahead of time.Supposedly your 1% rule calculation reveals that you should entirely focus on a much higher rent than what you can collect at the moment, it's an indication that you'll be falling short of your expectations once your mortgage and operating expenses are paid. This tells you clearly that the deal is not worth pursuing any further.Ultimately, the chances of you becoming an investor with a goal to surge ahead in your financial game will be high. In this vein, you will want to ensure that a real estate asset has the potential to reap a favorable monthly net income, setting you apart as a successful investor from the others as hit-or-miss investors. 3. Helps Set Target Rental RatesWhen it all boils down to setting your target rental rates, it can be quite intimidating, especially when you have to account for influential factors such as location, proximity to amenities and so forth.At this stage, it's imperative that the fine print of a rental agreement has within itself the final figure of what you intend to charge as your rental rate, and mirrors an achievable positive cash flow.This is where the 1% rule serves as a handy guide in decoding your target rent tag. Hence, the 1% rule dictates that your rental amount for the property in mind should be greater than, or equal to 1%, in order to qualify as a good deal.This particular metric buffer is largely effective in creating good opportunities for building wealth after all the qualifying expenses have been settled. Here is an example of the 1% rule to elaborate on the above points:Let's say you've stumbled upon a single-family home going for K300,000 on the market, and you want to turn into a rental property. You do your math using the 1% rule to determine how much your rental rate should be, and end up with K3,000 a month. Immediately, you knew that this is an excellent deal that will earn you a positive cash flow. So you pursued the deal further and closed it, after the property also satisfied other relevant criteria.After buying the house, you placed your tenant, and began your first month of rental. As expected, the beginning month earned exactly what you had in mind. This enabled you to pay off your monthly mortgage of K1350 (assumption) and other qualifying expenses totaling K1095, leaving you with a total net income K555 (K3,000 - K2445). In this case, you realize that the 1% rule actually helped predict a positive cash flow, and deemed the property worthy of your investment. While the opposite is true, do you see the usefulness of the 1% rule in evaluating real estate for rent?We hope you liked this article. Please stay tuned next time for part two where we’ll conclude with the pros and cons of the 1% rule, and what you should consider next after your rental property passes this rule of thumb.   Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Have you ever wondered if it was possible to invest in real estate with no money? Or, do you know how to become a property investor with little to no money at all?Generally, the first thing that comes to most peoples' minds when talking about real estate investing is "money" - that is “one needs money to start investing”. The fact of the matter is, there are real estate strategies in existence that require little to no money to kick start your real estate portfolio.Yes, you really can invest in real estate with no money. But if you don’t have any money, you will have to find some other way to contribute resources – time, skills, relationships, or sweat equity. There are a million ways to structure a real estate deal, and if you can’t bring money to the deal, then what can you bring? A Real Estate Investing MindsetBefore we delve into the strategies for investing in real estate, even when you have no money at all, it's imperative that the reader understands the importance of having a property investor's mindset.One of the key fundamentals in this situation is passion. If you're not passionate about what you want to do, chances are you will fail; or, you will not find satisfaction in what you do. The antidote is found in your enthusiasm, even if you aren't getting paid for it. And this applies to just about anything. It doesn't mean you worship the pursuit of happiness, rather be overwhelmed by a healthy passion at the core of your goal or mission. Become A Real Estate Investor With No MoneyThere are three types of real estate investing strategies that require little to no money at all, to trigger your journey towards real estate success. They are: Real Estate wholesaling; Lease Options; and, Seller Financing Shall we? 1. Real Estate WholesalingThis investment strategy is the cornerstone of this article, hence; being at the top of the mentions here. To all intents and purposes, real estate wholesaling doesn't require any money , to begin with; other than yourself and your intelligence. In short, all that's needed is for the real estate wholesaler to first contract a seller, followed by reassigning the contract to a buyer, usually another investor. And these deals can amount to several thousands, for the most part.In essence, this topic appeals to a significant number of real estate educators before you make any attempts, but for informational purposes, the concept is broadly outlined here, just to show those who are interested what lies ahead in this venture. How Does A Real Estate Wholesale Deal WorkThis strategy begins with finding properties that are either classed as distressed, or below-market value, however this isn't always the case. Once the wholesale investor locates this property, the next step is to locate the owner.The idea here is to discuss a price that the owner will happily oblige. To achieve this, once the owner has been located, there are several key numbers that you will rely on, in order to accurately come up with a good estimate.Your task then is to calculate the ARV, the cost of repairs and maintenance, holding costs, closing costs, the buyer's profit, as well as your profit.In hindsight, after the estimation of the number, the investor will use what is known as the 70% rule in order to determine whether the deal is workable or not. If the outcome is positive, the investor will move forward with an offer and negotiate the estimated purchase price with the seller. If the seller likes the idea, a purchase agreement will be sought for signing.The next step then is to find a targeted buyer, which is obviously another investor - in this regard - who is in the market for below market properties, whereby they're prepared to purchase, renovate, and retail the property at an ARV. Once such a buyer is found, the investor will move on with price negotiations, and close at a title/escrow company.The wholesale investor's profit for his/her part equates to the difference between what was paid to the seller, and what the buyer will give. This is also known as an assignment fee; thus, you've made money by investing with no money down payment. 2. Real Estate Lease OptionsLease options are actually alternatives that involve leasing a home to someone under legal oath to purchase the property within a set time period, usually between two and three years, tops. This strategy is sometimes known as rent-to-own homes. How does a Lease Option WorkThis strategy embodies creative endeavors and is heavily dependent upon the situation at hand. Regardless of the numerous ways to put this strategy into play. One way this is feasible is when the investor contacts a motivated seller. This particular seller will be one that's either in distress, facing a foreclosure, or is on default with his/her mortgage payments.Be that as it may, the investor is bound to make a reasonable fair price offer on the property in question, provided the terms and conditions of the deal are positive. This will either be found in the price or the term, where the chances of the investor making money are imminent.In addition, the investor will allow the homeowner to choose one of the two, rather than both.  Say the homeowner is motivated and is in great need to sell it, but can't. What the investor can do is offer a lease option to allow the homeowner to sell "in time" within a three year period. Put differently, the investor will decide on a lease option on the house from the seller, and negotiate a price as well as figure out terms to factor in the agreement (down payment, monthly payments, etc).Once you have the signed lease agreement, you can make a lease option on the property to a potential buyer.The investor, in this case, earns his/her money based on the difference between what he/she is going to pay for the property, plus what they sell and the difference in the monthly payments. 3. Real Estate Seller FinanceAmong these three strategies, this one’s the easiest. However, it’s only the down payment that may require you to execute some cash. Seller finance refers to a loan offered by a seller of a property or commercial enterprise to a purchaser, in spite of the fact that legal ownerships are vulnerable to changes in payment to the seller. Seller finance narrates that the seller must actually own a home outright, without any qualifying mortgage on the property.The benefit that comes with this strategy is it prevents an investor from requesting a bank loan. Better yet, the strategy enables those with poor credit ratings, or are without money, to invest.If the investor negotiates with the seller, provided they meet the requirements of the term or pricing, the seller will be more than happy to oblige with what's being offered. For example, they may not require a down payment if you increase the sale price, offer more on the monthly payment or have a higher interest rate.Sellers with their own homes will find it economical in getting paid periodically, than earning a one off large payment from a sale. By and large, these sellers will potentially get a lot out of this deal, when they assume the role of the bank, and resort to charging interests.This is one area where effective negotiations skills become handy, especially when the investor - by all accounts - is trying to strike out a good deal with the seller finance. We hope you liked this article. Please subscribe to our newsletter for more useful content and soak up as much as you can, while we work hard in the shadows to bring you more practical information about real estate.   Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

A home loan is an agreement by which a borrower can use a property as collateral in securing a mortgage. By and large, this term commonly refers to home loans. What entails this process is, as a borrower, for instance; you must sign an agreement with a lender of your choosing when you're in the process of buying a house. This will give the lender every right to claim and resell your property should you fail to uphold your end of the bargain.In addition, the lender has every right to take the property off you during what is known in lending jargon as a foreclosure, whereby you'll be asked to move out of the house in order for the bank to go ahead with the process.This sales process equates to generating money, on behalf of the lender, to help offset how much debt you owe to the ledner.The terms “home loan” and “mortgage” are commonly used interchangeably. Technically speaking, the outgrowth of a mortgage is synonymous with the agreement that gives birth to a home loan. The Need For MortgagesFor the most part, real estate tends to be expensive, and most people just don't have enough to buy a home straightaway. Rather, they rely heavily on what they can afford as down payments, plus their eligibility to get a loan. In PNG, a typical down payment is usually 10%, and borrowers usually borrow the balance once they've chipped in their down payment. Most often than not, this balance can amount to hundreds of thousands of kina.To a larger extent, a bank will only approve your loan if it sees a way to reduce the risk involved. As a basic requirement, a bank will seek permission to include a lien against the property in question, and it is found in the fine print of the agreement between the borrower and the bank, in general. The lien acts as an officialdom that allows the bank to foreclose your property where necessary; in other words, when you default on your mortgage payments.The database for mortgage applications is dominated by individuals and families, for that matter. But businesses can also purchase properties with mortgages, as well. The various types of mortgagesThere are various loan types on hand, and the secret in knowing which one will work best in your situation is to understand the associated terminology. Let’s look at these terminologies... Fixed-rate mortgagesFixed rate mortgages are the smooth kind of loans to anticipate, in that, you are required to make the same monthly payments throughout the term of the loan. These are long term loans that usually attract a repayment period between 15 and 40 years, even though there are other terms available.The math behind fixed-rate mortgages is quite simple, too. You can do the calculation yourself, or the bank can help you with it. The goal is to get a fixed monthly payment based on an all-inclusive amount that comprise the loan balance, interest rate, and the length of time it would take you to complete the loanFixed-rate loans are easier to handle, in the sense that they embody a DIY approach. You can do the math by yourself to know how much you'll be paying monthly, within a set time period, or simply have the bank do it for you. Tools like spreadsheets and online templates, as well as calculators are user friendly, thus, will enable a straightforward calculation. This is also an excellent way of comparing lenders to figure out which one is right for you. Adjustable-rate mortgagesThe interest rates accompanying adjustable-rate mortgages can change without notice in a loan repayment term. Your monthly repayments under this scheme usually correspond to the changes that come about, for better or for worse, depending on the circumstances at that time. Here, the interest rates are the draw card when it comes to determining how big or small your monthly payments will be; hence, the higher the interest rates, the more you will pay as monthly installments - the opposite is true.With adjustable-rate mortgages, the interest rates remain fixed up to a certain point after some years, before they become adjustable annually. Notwithstanding, there are few restrictions as to what end these rates can increase or decrease.All in all, adjustable-rate mortgages are high risk loans, simply because as a borrower you're not privileged to know how much monthly payments you'll be making in ten years time, for instance, and whether or not you're able to afford it. Home Equity LoansAlso known as second mortgages, home equity loans are loans that you borrow against the property you currently own. This is only advisable when you find yourself in need of covering outstanding expenses. A common example includes educational expenses for your child, unforeseen expenses, etc.Put differently, home equity loans or second mortgages are a type of loan by which you use the equity in your property as a collateral.  The loan amount mirrors the current value of the property, in where the value is determined by a valuer provided by the lender - in this case a second lender.Such a loan type becomes useful when cashing out on a home equity in times of financial crises. However, it's not a cause for concern at the moment, given the type of loans offered by major lenders around PNG.But for real estate educational purposes, it’s worth the mention. Interest-Only LoansThese loans allow a borrower to only pay the interest cost, or a trivial amount that's sometimes much less than the interest cost paid monthly. At the end of the day, you're left with a minuscule monthly payment, because you're repaying the loan principal.However, the drawback of this loan type is that you don't have the luxury of building equity in your property, if that's what you have in mind, and in the end you will still pay the loan principal.The interest-only loans will only make sense in certain short-term situations, but aren't the ideal options for homeowners wishing to create wealth in the long term. Balloon LoansBalloon loans are the type of loans that require you to offset them with a large chunk of payment, known simply in lending as a "balloon" payment, in order to diminish your debts or dinau after a set term. For the most part, you just might have no payments to do until that time comes around, or rather you'll only be paying increments to that end.Like interest-only loans, balloon loans are appropriate for short-term or temporary financing, because they're quite risky when you assume that you will have access to funds that you think you'll need, when these loans are due. Refinance LoansRefinance loans offer you the liberty to get a new or secondary loan to finance your existing loan upon a promising deal. In other words, you're getting another loan to pay off the old loan you got earlier. This can be an expensive exercise due to closing costs, but the good thing about this process is that it will help you pay off your existing loan as time prevails.That is to say, these two loans cannot be similar in nature. For instance, you cannot get a new fixed-rate loan to pay off the existing fixed-rate loan. Instead, the new loan can be a fixed-rate loan to pay off your existing adjustable-rate mortgage. Obtaining a loanHome loans are synonymous with heaps of documents and a lengthy, detailed process, in which several factors sync together.So when thinking of getting a loan, make sure you’re prepared to delve into a lengthy process. Credit and income historyBoth your credit and income history together will determine whether or not your loan application will be approved. This is why it’s imperative on your part to make sure there are no associated issues that may lead to an uproar before your application ticks all the boxes; even if there is, it’s wise to fix them ahead of the loan approval process.Poor credit ratings and income records almost always prompt a denial, even worse if your application is successful but at a cost of higher interest rates. The latter being that you’ll be paying more than what you should be paying over the course of the loan term.With your income and credit rating history, lenders have the right to substantiate your repayment potential with whatever loan they're about to give. This is one of the reasons why you have to prepare the necessary documents for the lender to sight. Lenders will look at your existing debts to make sure you have sufficient income to pay off all of your loans—including the new one you’re applying for. They'll calculate your debt-to-income ratio, which tells them how much of your monthly income gets eaten up by monthly loan payments.It’s possible to buy with a small down payment, but your chances of getting approved are better when you make a larger one. Lenders calculate a loan-to value-ratio which shows how much you’re borrowing compared to how much the property is worth.The less you borrow, the lower the risk for your lender because they can quickly sell the property and recover all or most of their money. And a larger down payment gives you more of a personal stake in the property and more of an incentive to avoid foreclosure. The Loan Pre-approval ProcessIt's always a step in the right direction to be able to know, beforehand, how much you can borrow when out shopping for homes. One way of accomplishing this is through a pre-approval by the lender.This qualifies as an introductory process, upon which the lender will need to assess both your credit and income histories. Once done, the lender will inform you of the maximum loan amount you're eligible to get.Nonetheless, this doesn't necessarily mean you'll be approved, yet it's information worth noting. What happens is that after the lender assesses anything and everything to do with your credit and income backgrounds, they will officially let you know if you're approved or denied, while under contract. The more, the merrier, and as time wears on, you will soon realize that a pre-approval letter can go a long way in reinforcing your offer, when it's time. How Much To BorrowThe thing about borrowing is that banks will tell you how much you're able to get, but will not discuss with you how much you should get. This is a personal decision, so how much you want to get, the type of loan you want, and the kind of down payment you can afford, will fall on you as the decision maker. These factors tend to become the primary focal point in helping you determine how much you will pay monthly, and how much of an interest you're likely to afford during the loan's lifespan. Substantially, it's quite risky to opt for the maximum amount available, mainly when you're considering some cushion in your monthly payments. Available Loan ProgramsThere are occasions where you will come across loan programs offered by the government and other local businesses. What you should be aware of is that these loan programs make it easier to get approved, even some do offer creative incentives designed to make homeownership more affordable and attractive at the same time. Then there are similar programs that allow you as the borrower to get refinancing, even when you owe more than what your house or property is worth. The BottomlineUnderstanding mortgages is one thing. Choosing which suits your needs is another. Probably the most important thing to remember here is that, when you approach a lender for a loan, it will make sense to know what types of mortgages are available and the advantages and disadvantages for each of these loans. Your goal is to find the one that’s right for you.  Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Welcome back to Part 2 of this two-part article on real estate investing terms and formulas. As promised, here we’ll take a look at:Additional BenefitsExpensesTerms and DefinitionsSo, without further ado, let’s head straight into it... ADDITIONAL BENEFITS Principal AppreciationPrincipal appreciation simply refers to the value of your property that appreciates or increases over time.This may be unheard of in PNG's real estate market, but there are those among us that buy properties - apart from investment and ownership reasons - because of the appreciating nature of their values.Since a property's appreciation value, in itself, has the tendency to create and develop wealth, it is equally important that you understand full well that it (appreciation value) can decrease as well. To ensure this insight, it's advisable that you consider cash flow first before considering principal appreciation as the sole motivation towards buying rental properties. The main goal behind buying investment properties at this point is to make money, and one way of doing this is buying properties that are below market value, so you can flip them to build equity - one of the simplest ways of earning positive cash flow, thus, making money for yourself. Principal Pay Down/Principal RecaptureThis is the equity that you gain when making your monthly mortgage payments, and can also be seen as the extra savings that you're entitled to within your loan. Since your property will be up for rent, your tenants will indirectly make these pay downs, while you stand back and witness your net worth rise. Tax Benefit(s)Tax benefit is actually a comprehensive summary that talks about a form of savings by a taxpayer. This means anything, in monetary terms, that lessens a taxpayer's monetary burden - and they usually promote responsible behavior and profit-oriented enterprises.Examples of expenses that you can claim tax deductible interest on are:Loan interestProperty Management FeeMaintenance and Repair CostsProperty TaxesLegal FeesTravelDwelling InsuranceUtilitiesand moreOverall, when it comes down to tax benefits, always seek professional advice from an accountant, just to be on the right track with your investment calculations. EXPENDITURE Capital ExpenditureThis type of expenditure specifically represents the costs involved in replacing critical fixtures and fittings of a property such as fencing, walls, plumbing and hot water tanks, etc.Capital Expenditure (or CapEx) is one of those varieties of expenses that many rookie investors fail to understand and consider, when investing in real estate for the first time.To execute a rough estimation of how much you can prepare for CapEx, begin by saving up to 5 or 10% of your monthly rental income as your CapEx allowance.By and large, when you purchase an investment property, bear in mind that you're entitled to find out the last time these big fixtures and fittings were serviced or installed. With such information on hand, you can work out, according to your capability, how much you can put aside as CapEx, in case you may need to do maintenance on or replace these items in the future. Debt Service(s)Debt services actually represent the amount of money that you put forward in paying off your loan every month. This money is part loan principal and part loan interest, which you are required to pay towards servicing your loan. In other words, it is the payment that you make periodically to reimburse the principal and interest you paid on the loan.Of course, if you’re dealing with cold hard cash to purchase your property, then debt services will be far-fetched. In addition, when out shopping for a loan, always make sure you visit every lender you can possibly find to get the best rate, and a loan that suits your situation.All in all, if you tend to stress too much on where exactly you can at least obtain the value of your investment property for analysis, use a debt calculator online, so you’ll have a fair idea of how much of your rental income can qualify as your monthly debt payment. Dwelling Insurance Dwelling insurance, also known as "dwelling coverage" or "hazard insurance" makes up part of a homeowner's insurance policy, and can help to facilitate the costs of rebuilding or repairing damages to all or part of your property by a covered hazard.As a homeowner, you will need to cover for potential unfortunate events that might happen at your property, and this is one such insurance you cannot ignore.Whilst most homeowners may define their dwelling as a structure in which they live in, a dwelling insurance can help protect more than just that dwelling. This insurance policy may protect other physical structures, beside your home, that are attached to your home. For instance, a hot water tank or a garage, etc., as long as the structure, no matter what type, is attached to your property, it can be covered by the dwelling insurance.For the most part, the contents specified in a dwelling insurance coverage will vary from one policy to another, or from region to region. So if you're thinking along this line, it's best you seek expert advice from a licensed insurance broker or the real estate agent you're dealing with. Vacancy Allowance/Vacancy rate Vacancy allowance or vacancy rate is the money that a landlord puts aside every month to match the rental expenses of their investment property, once it becomes vacant.Formula: Vacancy Allowance = Vacancy Rate (%) x Monthly Rental IncomeThis is one thing all new real estate investors must be aware of and prepare for when venturing into the realm of real estate investing.Without awareness and preparation, you’ll end up squeezing out your personal savings account when your rental property is vacated. To better understand how much you should save as your vacancy allowance, first of all find out the vacancy rate of the area you wish to invest in. Your local real estate agency is probably the best place to start with in obtaining this information. Maintenance / Repairs These are the costs of maintaining good living conditions in your rental property, for the sake of your tenants. They are worth mentioning because they do happen and will happen.In addition, when your rental property encounters the need for repairs and maintenance, you will have to classify each of these tasks into regular expenses and capital improvements. Some of these repairs and maintenance work can be done by your tenants. But it’s wise to prepare anyway, in case things do not turn out the way you expected them to.For those who may be confused about how much to put aside for these tasks, you don’t necessarily need expert advice. You can decide with what feels right to you - setting aside 10% of your monthly rental income isn’t a bad idea. Property Management This term talks about a company acting on your behalf in managing your investment property. Property management is plausible when, for instance, you’re in Port Moresby but investing in Lae. This way, you can engage a local property management company or real estate agency in Lae to help manage your property. The advantage of this is that it helps you avoid making emotional decisions. In other words, when you become personally acquainted with your tenants, you will be ashamed just to get them to make up for their missed payments. So property management is one of the best ways forward when you find yourself in one of these situations. Property Taxes This is a tax you pay on your property. In real estate, property tax is often described as an ad-valorem tax, and can also be considered as a regressive tax. This tax is usually calculated by the government and, thus, is met by the property owner.In essence, this tax normally reflects the value of the property together with the land. However, there are some jurisdictions that go as far as taxing personal properties like motorbikes and boats. TERMS AND DEFINITIONS Closing Costs Closing costs are fees that you pay at the end or the closing of a real estate transaction, and usually make up between 2% and 5% of the mortgage principal. In fact, there are various other closing cost components, and they vary from one country to another. Some closing costs, however, are negotiable between a property buyer and seller.How much you should pay as closing costs will entirely depend on the home’s purchase price, the flexibility of the market, and the location. Examples of fees that are associated with closing costs include:Appraisal feeCredit report feeOrigination feeTitle searchTitle insuranceUnderwriting fee, etc Days On Market In real estate, Days On Market (or DOM) simply refers to the number of days a listing has been on the market. Put differently, a property's active time on the market while on sale.Generally, the longer a house for sale sits on the market, the less valuable it becomes. Nevertheless, there's a catch, just like there are two sides to a coin.The number of days a home sells on the market gives you the opportunity to get a few statistics out of that saga. A handsome grasp of those statistics will lead to your prosperity in real estate.You see, through these data, you can be able to work out the average number of days it took for a home to sell in any number of categories:By province;By city;By neighborhood; or,By suburb For instance, say it took four months for a single family home to sell in Gerehu recently, compared to two months with a similar property at the same time last year. This tells us that the market is slow, and probably because of COVID-19.Or, say it took just two months to sell a property in 8 Mile on average, while it took a similar property in Gordon to sell in four months. With this, we can say that 8 Mile is in high demand, etc. The essence of such statistics come about when you're in the process of comparing the average number of days of properties for sale between locations. This averages, overall, will tell you exactly how the local market is performing.On the other hand, when you find a property that has been on the market for too long, most of the time you’ll be able to negotiate a better deal; the owner is probably tired of listing their property and wants to get rid of it as soon as possible.And this is what Days On Market or DOM is all about in real estate. Down Payment This is the amount you put down as your part in purchasing a property, when you apply for a loan. In PNG, the down payment is usually 10% of the property's purchase price. So if you've applied for a home loan to buy a K400,000 property, you're required to chip in K40,000 as your down payment.That's basically what it means. Emergency FundsThis has a lot to do with "saving for a rainy day". It can go by many names depending on how it’s interpreted, but in all entirety it’s simply your personal savings set aside in case of emergencies.In real estate investing, it would mean just that: emergency funds. How to go about it as a rule is to earmark 3 - 6 months of expenses, or better, concerning your rental property. This means to take stock of everything that your investment property gives you as expenses. Security Deposit Security deposit is basically the amount of money given by tenants to landlords, banks, or home sellers as a confirmation of their intentions to move-in. In PNG, most landlords would be familiar with this term as "Bond Fees".These deposits are sometimes refundable, while other times they aren't. The purpose of a security deposit is to cover any damages to the property in the future, on the part of a tenant(s). In conclusion When analyzing two kindred properties to determine the best deal, try to remain prudent with your numbers.Since the real estate industry has tons of formulas to offer, in order to assist with your cash flow analysis, where applicable, use them with a grain of salt. At the end of the day, you want to be comfortable with the results of your investment, rather than one that spells poor judgement.Remember, not all deals that reflect one or more of these terms and formulas will suit your situation. The goal is to not stop until you find the one that works best on your behalf. Furthermore, although some of these terms and formulas may not be common in PNG’s property market, they’re worth your understanding, just like what an emergency fund entails. So it’s wise to take your time, be patient and do the math before heading straight into a deal.   Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Are you thinking about paying off your mortgage early? What’s your target period? Monthly mortgage payments can be a huge burden on your budget. Fortunately, there are ideas to help you work around this problem.So, if you’re looking for an easy way out of your self-made enigma, consider the following six tips:1. Loan RefinancingLoan refinancing is another way of saying get a new loan to replace the existing one, because you're aiming to cut back on the amount on your current loan, as well as lower current interest rates, cash in on equity, or simply switch between a fixed-rate mortgage and an adjustable rate mortgage, and vice versa - provided your circumstances are justified accordingly.As a rule, you must qualify for a short-term loan with higher monthly payments, as this will help you pay off your existing mortgage quickly, providing the luxury of huge savings in total interest. For instance, say you have 25 years left on your loan and you decide to refinance it with a 30-year mortgage, obviously your monthly payment may actually go up, but you may pay tens of thousands less in interest over the long run (and you’ll have your house paid off 10 years sooner).Secondly, ensure you have a good credit score because down the line, you can apply for yet another loan to offset the one before; and with a poor credit rating, you inflame your own undoing. All in all, the two major reasons to refinance in this scenario are:To reduce your monthly mortgage payment or;To save on the overall interest you will pay on your house in the long run.2. Extra Mortgage PaymentsLike any other debt, or "dinau", you must pay off your mortgage. So, in order to get it over and done with as soon as possible, every usable alternative counts, such as additional payments on top of your required monthly loan repayments. This is another simple way to pay off your loan early.When you make extra mortgage payments, not only do you get rid of your debt or “dinau” quickly, but you also end up saving enough in interest payments. The cognition behind this is that, obviously, the more debts that you have, the bigger the interest and the more it will lead to your undoing; and this is one position you don’t want to be in.Worse yet, if you fail to capitalize on the opportunity to make extra payments, chances are your interest rate will grow and you’ll end up paying huge interest costs. Remember, your goal here is to pay off your loan early, in order to achieve financial independence. However, this will depend on the type of loan you qualified for and the strategy used in paying off your original mortgage.Like yin and yang, it should be in your best interest to better understand the condition of the loan, because you don’t want to be paying extra interest costs that come with extra payments. For the most part, there are some loans that restrict extra payments, that’s why it’s essential that you fully understand the type of loan you’re getting. 3. Strategize With DisciplineThere are two things that fall into place here: a strategy and the discipline needed to fulfill that strategy.The essence of establishing a time frame to pay off your mortgage early is that it gives you a target to work towards, and a vehicle (mindset) to reach that target (paying off mortgage early). As a starting point, use a mortgage calculator online or one that’s offered by your lender. This will tell you how long it will take for you to complete your mortgage payments, and how much you’ll be paying periodically.You can then use the result to determine if that’s what you’ll settle for, or consider a viable alternative to help you pay off your mortgage quickly. 4. Create Side Hustles To Help Offset Your Mortgage PaymentsUnless you’re disciplined to the point where you can manage one or two snacks biscuit and a cup of tea a day for two weeks, and have more than enough saved up, then maybe you won’t have a problem affording extra payments on your loan. Other than that, in most cases, your fortnightly expenses will exacerbate your ability to make that stretch.Now, making extra payments is one thing, how to manifest that is something else, and requires a great deal of exploring alternatives apart from loan refinancing. One that sticks out like a sore thumb is a side hustle.This can be as simple as selling buai and cigarettes, writing CV and cover letter for job seekers, designing book covers or company banners, and the like, for a specific fee; even writing blogs for companies at K1 per word, whichever that works for you, as long as it’s legal and helps you make extra payments on your monthly loan repayments.There are heaps of ideas for side hustles out there you can use. You just have to explore them and put into perspective one that suits you. Besides, this will come in handy if refinancing your loan is an option if you have a poor credit score rating.A side hustle will also prove very useful when you no longer have a stable income. 5. Cut Down On Unnecessary SpendingThis may result in a smile on your face, but it’s no laughing matter. It’s quite a drag, when you’re in the shops with a list of things to buy but end up with extras because you simply can’t walk pass those reflecting twisties packets, or that shimmering, transparent bottle of Trade Winds Vodka inside a room at the far end of the shop that has a huge sign that reads: Bottle Shop - just some examples of unnecessary spending. Come to think of it, some of the things that we end up buying, apart from the shopping list we’ve written back home, are things we don’t necessarily need. So if you have a loan to pay, and you want to pay it off early, there are certain things you will have to sacrifice, and one of them is unnecessary spending. It’s all about being disciplined, that’s all.  6. Lump Sum PaymentsEspecially when you want to pay off your loan or mortgage early, this another thing you’ll have to work into the equation. Either it’s a tax refund, a bonus, or overtime, try consider those rightful earnings as extra payments. Of course, we can’t deny the fact that temptations are just that - very tempting. The moment we get some form of bonus or extras, we are tempted to buy this and buy that. Worse when we have a loan to pay and quickly. But with a strategy in place alongside discipline we'll realize that these additional earnings can be used as extra payments on our loan repayments. ConclusionPaying off your loan or mortgage is one of those ideas that help you save money. There are dozens of ways to achieve that and become financially independent, and we’ve six in this article. You don’t have to take them all in, as you might have an extraordinary idea that will make these tips obsolete. Rather, what you should remember is that you need a strategy and the discipline to get you there.   Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

Once you decide to invest in real estate, it's crucial that you gain an in-depth understanding of some of the investment terms and formulas used explicitly, in real estate.These will come in handy when purchasing an income-producing property, and will greatly help you mature in the business of real estate; hence, evolving your rental property portfolio.The truth of the matter is, first-time investors will find them (investing terms and formulas) somewhat overwhelming and intimidating, and that’s okay because, like everything else, the first time is always the hardest. But a little perseverance goes a long way, and the more focused and involved you are, the better you become with understanding and insight of these lingos and calculations. To start you off, imagine asking yourself the following questions:How do I know if a property is a good deal?What kind of ROI should I be looking for?What is cash flow?Now, if the answers came to you meticulously with real estate investing terms and formulas in mind, then you can stop reading right here. If, however, you were confused or it took you some time to think through the best possible answers, then read on. You might be surprised at how tricky it can be to lead yourself astray, without a glimmer of discernment why these terms and formulas are important in real estate investing. Let’s get started!This article is the first of a two-part article (Part 1 & Part 2), and the list of terms and formulas chosen for discussion are categorized into the following points of reference:Rental Property Analysis Rental Property Analysis Formulas & CalculationsIncomeAdditional BenefitsExpensesTerms & DefinitionsHowever, we’ll only be covering the top three points here, while the latter half of the list will be featured in the next article.   (1.1) Rental Property Analysis Terms Now, envision yourself coming across a single family home which you found compelling. As it stands, the property is selling for K395,000 (only an assumption) and according to you, this would make for an excellent income-generating asset. But you also want to know if it’s a good investment or not. Here are some of the key calculations you can learn and experiment with to determine the nature of the deal, as a new investor:The 1% RuleThe 2% RuleThe 50% RuleCap RateCash FlowCash on Cash ReturnGross Operating Income (GOI)Net Operating Income (NOI)In reality, the outcomes would be aloof if “vacancy allowance”, repair and maintenance, and capital expenses were left out of the equation. However, they will be discussed in a later article. For now, this article will only look at the generality of these terms and calculations, with a few simple examples.In retrospect, it’s no big deal really, when it comes down to determining how and when your tenant should pay; as you won’t necessarily whip out your spreadsheets to smoke a deal into thin air. Instead, you can ask your real estate agent for an insight on these terms and calculations and, in PNG especially, if any of these are applicable or familiar. But for the sake of succeeding in real estate investing, these lingos and formulas are worthy of introduction and reiteration. Let’s move on! (1.2) Rental Property Analysis Formulas & CalculationsHere’s where everything comes undone. Just like the BRRRR strategy, these terms and formulas may seem foreign to PNG’s property market. But, they’re worth your understanding when all that’s left in front of you is ascertaining between two similar properties, in pursuance of deciding which one has the highest potential rate of return (ROI). 1. The 1% RuleThis rule is ideally suitable in determining if your monthly rental income will be more than your monthly mortgage payments. The rule of thumb here is your monthly rental income must be greater than or equal to your monthly mortgage payments.Formula: 1% Rule: 0.01 x Purchase Price = Monthly Rental Income (i.e., your monthly rental income must be more than or equal to your monthly mortgage payment). You can get the same result by reversing the 1 percent rule:  [100 x Monthly Rent = Maximum Purchase Price]  Example:If a property rents for K1,500 per month, after a quick calculation, you know that you can’t pay more than K150,000 on an investment property. All in all, the 1% Rule dictates that you should multiply the purchase price of the property plus any necessary repairs by 1%. This is the baseline rent you should charge every month. Compare the result to your potential monthly mortgage and you will have a better understanding of a property’s monthly cash flow. 2. The 2% RuleSimilar in concept to the 1% rule, the 2% rule is all about progressing investors' rental portfolios, but with a twist simply because it also introduces the rent to value ratio. For the most part, this criterion states that in order for an investment property to translate into a good investment, its monthly rental income should equate to or surpass 2% of the purchase price.Formula: 2% Rule: 0.02 x Purchase Price + (Any Maintenance & Repairs) = Monthly Rental IncomeThe 2% rule seems a good investment measure for "cash flow investors", as it helps them decide, between two kindred rental properties, which one is more fruitful. There's a time and place for everything, likewise, there's a time and place for the 2% rule to work effectively. This depends entirely on what an investor plans to get out of an investment property. But the alternatives are straightforward.Once your investing goals are clearly defined in this scenario - be it property appreciation or monthly cash flow - you'd know exactly when to or when not to use the 2% rule. Example:A property that costs K150,000 should rent for at least K3,000 per month. A property that costs K350,000 should rent for at least K7,000 per month, etc.3. The 50% RuleThis rule may be tricky in the sense that you might be thinking it shares similar sentiments with both 1 and 2% rules, but that’s not the case. The 50% Rule is strongly associated with your monthly rental expenses, adding that such expenses must be at least 50% of your rental income (excluding mortgages) - talk about effective management of your earnings. Formula: 50% Rule = 0.5 x Monthly Rental Income = Expenses (excluding mortgages) Example:Referring to the earliest example where the single family home is selling for K395,000, let's say we used the 1% rule to determine our monthly rental income, and the result is K3,950.Now, applying the 50% rule to sort out the expenses, we end up with K1,975 (0.5 x K3,950); hence our expenses.That’s how much your expenses should be worth, in order to settle for a good deal. Note: Under the 50% Rule, the expenses do not include mortgage. 4. Capitalization Rate (or Cap Rate) Capitalization Rate, or commonly referred to as Cap Rate, is a method used in real estate to evaluate a potential investment.In consequence, you must know how much the annual return on the property is before you can calculate the cap rate.Again, using the above example, your annual return would be K47,400 (K3950 per month x 12 months). Now that you know how much annual return this property will generate, calculate the cap rate, as this will help you decide if the property is a good investment:Formula: Cap Rate = Annual Return / Purchase Price = K47,400 / K395,000 = 8.33%.Keep in mind here that the higher the cap rate, the bigger the risk, while a lower cap rate means a good deal. Advisably, cap rates between 4 and 10 percent are considered low risk, which makes for a good investment in a rental property. Also of note, a cap rate varies with where you invest, so it’s a good idea to find out more from a professional agent, with respect to your property investment goals. 5. Cash FlowGenerally, cash flow is actually profit after deductions. The principle idea is the same, it's only the adaptation of it into various industry lingo that gives it a different sway.For instance, in business, cash flow may be understood as: Profit = Revenue - Expenses. In real estate however, cash flow ideally narrates income less expenses; rental income less expenses, or to be more technical: Cash Flow = Net Operating Income (NOI) - Debt Services.If both Net Operating Income and Debt Services are overwhelming, don’t worry. For now, just remember your monthly cash flow as rental income less expenses.6. Cash on Cash Return (CCR)This investing term basically is a metric that’s used in measuring the profitability of a real estate deal. After all, you don't want to waste your time on a deal knowing beforehand that it won't profit you in any way, as a new investor.Truth be told, this calculation serves as the basis for clarifying your net income generated by your investment property, which is pertinent to your initial investment made to purchase the property.Put differently, this metric verifies how much you earned on top of what you invested in the property.Formula: Cash on Cash Return (CCR) = Annual Cash Flow / Initial Capital Investment; where Annual Cash Flow = Monthly Cash Flow x 12.Initial Capital Investment = Down Payment + Closing Costs + Improvement Costs (money that you put into the property to get it ready for rent.) At this point, you might be wondering about the kind of CCR to look for. In actual fact, It's quite easy, to begin with. All you have to do is calculate the average return you're presently receiving from your other investments, then use that result as a goal to beat, when out looking for a rental property to buy.7. Gross Operating Income (GOI)The Gross Operating Income (GOI) is the result from which vacancy allowances are subtracted from the total monthly rental income of an investment property. Sometimes referred to as Effective Gross Income (EGI), this term, however, is only arrived at when you figure out the Gross Potential Income (GPI).Here, the biggest challenge faced by rental property investors is maintaining a consistent positive cash flow every month for a year. Needless to say, your journey towards  Gross Operating Income begins with what is known as a Gross Potential Income - potential is self-explanatory, by the way; it's just potential and not a reality as yet.Gross Potential Income has everything to do with the expected rent your rental property will generate in a year, if your tenant(s) will rent for 365 days straight; with an agreed full payment throughout.Once the dust settles, the calculations for your Gross Operating Income begins.Formula: Gross Operating Income (GOI ) = Monthly Rent income – Vacancy Allowance8. Net operating Income (NOI)Net operating income is the money that you're left with after deducting property expenses from what is left as a result of subtracting any vacancy allowances from gross operating income.Simply put, NOI is the earning you receive from an income-producing property, if the property is owned by you free of a mortgage.(1.3) Income 9. Rental IncomeAs we've already discovered, rental income simply refers to the money your renter or tenant pays you periodically for using or renting your property.Additionally, rental income is not just about properties or investment properties. There are multiple alternatives by which you can also earn a rental income, such as:Storage spacesParkingVending machineMaintenance servicesand more if you're a creative, these ideas won't be difficult to come by, since you'll be able to identify and capitalize on them as soon as possible. Because if there's a demand for such items, but aren't available anywhere else than your location, obviously people will want to rent them.This then gives you the perfect opportunity to put either of these terms and formulas into perspective, where applicable.After all, rental income doesn't apply to just one rentable asset, but multiple.   Disclaimer:This article is meant for informational purposes only and is not intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.

When it comes to real estate investing strategies, it’s quite an ordeal to determine which ones you can use, and which ones will make a statement. There are, however, a variety of investment strategies to choose from, but none morecatchy, creative and full of flair than the BRRRR strategy.The BRRRR strategy was coined by a real estate entrepreneur, Brandon Turner from BiggerPockets.com, and it stands for Buy, Refurbish, Rent, Refinance, Repeat.At first mention, it may remind you of the sound we make when we're cold, or as if reacting to a Sumerian utterance. (pun intended)  Although it may be new to PNG real estate jargon, it’s rarely the case among investors in other countries, because it has been around for quite some time.Speaking of building your rental property portfolio in a short space of time, this strategy is the best way to sustainably bag a rental property. The originThe BRRRR strategy barely qualifies as a new concept in this era.Real estate investors of old have been submitting to this model for years under a different theme before the name "BRRRR" bounced into existence.However, these quirky acronyms have a way of engraving themselves on our minds, and because they're easy to remember, new investors tend to become familiar with them in no time. The essencePurchase a below-market value property or fixer-upper with short-term cash or financingOnce refurbishments are completed, put it up for rentWhen a tenant is secured and an income stream generated, the property can be used as collateral for the next project.As a matter of choice, a new BRRRR investor should be able to get back most or all of their initial capital back, in preparation for the next BRRRR income-producing property All in all, the logic behind this strategy is buying a cheap, rundown house, “flipping” it, and putting it up for rent as collateral for the next BRRRR investment. Enter the BRRRR strategyReal estate investing is seldom trivial within a set time period. There's always a pulse, a happening, a new way of making money; consider sweat equity as a relevant example. More often, you will come across a new strategy or a new approach to making money in real estate; not up, not down, nor left or right, but through investing.And there are those that actually get imprinted in your mind, because of their name, their purpose, and their proven success. It is among these that you will surely pass by the BRRRR strategy.This strategy is ideal for newbie real estate investors, and is a concept worth a thought in PNG's very own property market. The specs Let’s look at the specifics:B - BuyPurchase an investment property that's in dire need of reconfigurations or value adds. This can vary from minor cosmetics to major repairs and maintenance, even landscaping will factor into this equation - anything that will help bring it up to par, making it livable as well as rentable. R - RefurbishJust like an ugly duckling turning into a beautiful swan, in a similar fashion, that's what you must do to this unattractive, relic of a property - transform it into a living, breathing, beautifully charming abode. But don't go overboard. Work within your budget so as to be sufficient, not exaggerated. What you should aim for here is to get back more than what you invested in repairs and maintenance, once it goes on rent. R - RentAt this stage, your once fixer-upper property at below-market value has achieved the move-in-ready title, and is welcoming applications for long-term tenants who are able to take care of it.  R - RefinanceHere, you will want your remodeled property to maintain its new image, because you'd be anticipating a lender to offer a loan of 90 percent that will match the after-repair-value of the property.If you find a lender that agrees with you, expect them to hire a valuer (at your expense) to give a considerable estimate of your property's value.What the valuer will do is compare similar properties in your area and how much they're going for on the market, how much you're charging for the rent, and the total cost of the repairs or improvements.If the valuer offers the bank a much higher appraisal amount than what you originally intended, you’ve got the loan fair and square. Now you’re at a vantage point where you can pay off any loans or mortgages you acquired earlier for the property, plus reimburse yourself for what you invested on repairs and maintenance.Bear in mind that, to be successful under this strategy, you must first qualify for a loan. Unless you're a self-made billionaire, to qualify for a loan, you must be able to substantiate your income statement and credit history. In fact, there are certain creative ways to work around this, however, they're way beyond the scope of this overview.Needless to say, don't let these details discourage you. It only takes a mixed dose of open mindedness, creativity and enthusiasm to overcome whatever that stands between you and prosperity. R - RepeatIf you’ve made it this far, that means you still have some finances remaining. You’ve got two choices: 1) Spend it carelessly, or 2) Invest in another BRRRR.Imagine if you continued this trend within a year or two, having several BRRRR properties to your credit? You can picture the rest.  Who should use the BRRRR strategy?Let’s get this straight - the BRRRR strategy is not for those who want well-appointed or fully renovated properties, ready to be purchased and rented out. This strategy works best for those who prefer:Projects and project managementSeeing the life cycle of things from start to finishA bit of uncertainty around construction dates and budgetsTo grow their real estate investing portfolio very quicklyTo truly learn the ins and outs of real estate investing (with the BRRR method, you tackle several different hurdles involved with real estate investing) The BRRRR strategy exampleAssume that you paid K80,000 for a property below market value worth K120,000 (only an assumption). Then you chipped in another K15,000 for repairs and maintenance. This leaves you all-in for K80,000 on a property worth K120,000. Applying the BRRRR method, the refinance part comes after the refurbishing of the property. Your lender will base the property’s value on the initial price of K120,000 and not the K80,000 you paid for. At a 90% loan-to-ratio, you could easily refinance and recover K108,000 (or 90% of K120,000). As it stands, you only spent K95,000 (K80,000 + K15,000) to buy and remodel the house, so now you’re left with K13,000 (K108,000 - K95,000) in the deal.Now, if you compare this to the traditional method that involves down payments, you wouldn’t recover much of the capital that you put into refurbishment. More will be discussed in a later article.  Bottom lineMany real estate investors - overseas - have struck gold with this strategy. You get what you give, and this strategy can be your friend or foe, depending on how well you understand its schematics. On the whole, it's an incredible way to build wealth in real estate, as well as your real estate portfolio.The best part is that in the long run, you will come to consider leaning towards lower risk strategies like what is known in real estate calculations as the Rental Debt Snowball.Most importantly, however, is to get your remodeled property rented, because if you don’t then you’ll only end up with a growing list of debts to pay, as well as digging your own grave.Nevertheless, these concepts may be foreign to PNG's property market but they're worth bringing to light. After all, “ideas” are bulletproof - they cannot be killed, only be accepted or ignored.

Destination Era Dorina EstateDominating much of the scene at Ela Makana Street in downtown Port Moresby, Credit Corporation Properties offer a first class corporate and family living experience, that has numerous potential to rival the splendour of Port Moresby’s intriguing residential accommodations. Home is haven at Era Dorina EstateAt Era Dorina, you can expect a faultless service, desirable amenities, and a family-friendly atmosphere that instantly puts you in a homely mood. The residential-style suites bring together thoughtful designs and modern day details to make your stay truly exceptional. The NeighborhoodEra Dorina is a short stroll away from the beachfront of Ela Beach, with food outlets, service stations, medical centres and shopping centers all within 2 minutes drive from the estate. This strategic positioning near Lawes Road provides a great location for people working in the CBD area of Port Moresby, who would also enjoy the little luxuries of having the popular Koki Fish Market, two Medical centres and three major shopping centres nearby.  A service in a league of its ownEra Dorina’s housekeeping staff are in a league of their own. Ensuring suites are cleaned to expectations. Whether it’s gathering everyone inside for dinner, or hunkering down for a light nap and savoring the moment to yourself, it’s all ripe for the taking.  Everything you needThese unfailing, grand residential accommodations offer fully equipped kitchens, complimentary Wi-Fi, and cabled LED TVs with respective Digicel Playbox, for all your entertaining needs. Notwithstanding, if you’re cooking up a self-taught multi-course meal, or unwind in front of the 55 inch Samsung TV with your favorite show, you have the freedom to dictate your stay at Era Dorina. Vision of excellenceAt Era Dorina, it’s not enough to be good enough. Quality and excellence are what they live for, and they are proud to serve you to the highest degree, and it shows in everything they do.From a warm welcome of their uniformed staff, to 1, 2, and 3 plush bedroom accommodations, to priceless designs and furnishings, it’s nothing short of a flawless experience. Live your stay to the fullestHere, the details of corporate executive lifestyle and family living are taken care of, effortlessly. Whether it’s a fitness center that you contemplate, outdoor swimming pools with fitted BBQ spaces, a lap pool, sauna, multi-purpose tennis and basketball courts, children’s playground or airport transfers, your stay is guaranteed to be as sound as bell. Era Dorina’s suite of services also include: Customized tenant help desk emails24 hour security + monitored CCTVOn-site managementHousekeeping and maintenance around the propertyElectric perimeter fencingSecurity alarm systems in each unit Welcome homeCredit Corporation is delighted to welcome you to one of its largest executive residential estates by far, with a fleet of 3 bedroom townhouses, 1 to 3 bedroom apartments, and 1 bedroom studio apartments. Discover the art of corporate and family lifestyle living with downtown Port Moresby’s five star destination, reserved just for you.In the presence of fantastic panoramic views outlining Port Moresby’s Fairfax harbour and Motukea, right across Walter Bay, what’s not to dream about Era Dorina? For further enquiries, you can contact the Credit Corp Properties on 321 8101 or visit Era Dorina Apartments on Hausples.com.pg to book an appointment.

A virtual tour, like a remora, strongly emphasizes a sense of ownership. What does that mean for your listing?Once prospective viewers are reeled in by the awesomeness of your listing, the accompanying virtual tour ensures they lavish their time on your property online, before a physical tour is apparent - just one of many benefits a virtual tour brings you. Sell more properties fast while keeping your clients engagedClick on the image and select 360° Virtual Tours for a realistic tour A property listing that comes with this option, usually encourages a lot of property viewings online, as if a huge property auction was taking place in reality. More than 80% of views are said to result through this alternative, than what you'd expect from the old fashion way.Imagine, from a HR specialist’s perspective, the term “turnover” is a word with negative undertone, especially when a company has a high human resource turnover rate. But not in real estate, because a market with a quick turnover rate for properties means all the positives and is ripe for exploration.A virtual tour and its related tenets, the likes of which are 3D walkthroughs and 3D tours, have proven highly successful in attracting a huge following from online property viewers.So the question remains, why hasn't PNG's real estate market tried a hand in this technology yet? What's keeping the industry from utilizing this marketing tool?On top of that, serious buyers with the intention-to-buy won't take long to decide if they want to buy a property. The ethos of a virtual property tourClick on the image and select 360° Virtual Tours for a realistic tour A decade ago, virtual reality made headlines around the world in every science and technology news.  This significant improvement in technology made in-roads into major industries we have today, including real estate. And it has brought about many changes that inspired a new perspective on marketing both products and services. The thrill of a virtual tour in real estate is twofold: for one, it allows online viewers to get a realistic glimpse of a property's interior, accounting for every detail as if they were there physically. The other is it gives online viewers the ability of 3D rendering. More preferably, a comprehensive glimpse of your property interior, for that matterCome to think of it, why waste time trying to come up with an emotional narrative that has the essence of Shakespeare, just to encapsulate your prospective buyers in a property purchase, when a virtual tour has all that covered for you in one swooping-moving image? The magic of virtual house tours is that they come with the additional flavor of allowing viewers a visual walk-through of a property on sale, combined with a strong sense of ownership, and without the need for being on-site. Visitors to listings online can see each compartment of the property in detail with a few clicks of their mouse.  In the end, they get a rich experience of the property while visualizing themselves owning it. Why choose a virtual house tour? Let's consider the ten key benefits of a virtual house tour:Click on the image and select 360° Virtual Tours for a realistic tour 1. Saves timeOnce you list a new property for sale, chances are you may rake in more enquiries than you could handle from potential clients. But "potential" becomes a word for the hopeful and reluctant if each client was only curious, rather than having the intention to purchase.Furthermore, making the effort to appropriate time for one-on-one conversation with each of your clients, only to end up with something like, "I'll think about it and get back to you".A virtual property tour, in this case, separates the well-intentioned buyers from the "just curious". Visitors to Hausples website are presented with an all-inclusive viewing of the new listing captured on video, flavored with a 360-degree perspective. Those who are instantly mesmerized and decide to buy will call you immediately. While those less inclined won't even bother. In the end, freeing up most of your time so you are able to make time for other matters of your business.Additionally, if a potential tenant is travelling into the country or city where your property is located, the virtual tour provides a great perspective to the client beforehand, to confirm if they will find your property ideal for them. 2. Cost effectiveApart from meeting with indecisive clients, imagine how much you'd be spending on fuel alone? On top of that, the clients you met with couldn't promise you a purchase.These are aspects of a property viewing or inspection that a technology like virtual tours can eliminate.All you have to do is link the tour with the new listing and your customers can easily checkout the full scope of the property, beforehand. Again, those with a strong intention to buy will eventually contact you, rather than just admiring your listing online. 3. Net more visitors to your websiteClick on the image and select 360° Virtual Tours for a realistic tour Online property listings with virtual tours rarely fail to increase online views, than what you’d normally expect from traditional listings.In other words, the more clicks you register, the bigger your website traffic will be, and the better your chances of selling one or more of your listings.The major benefit of virtual listings on Hausples website is that you easily stand out from your competition. For instance, a notable banner will be displayed across your display image, signifying that your listing comes with a virtual tour. What’s more, your listing also has the opportunity to rank highly in Google search results; thus, enabling your property listing to be found quickly and stay on top of your prospects mind, the first time, everytime. 4. Record low bounce ratesBounce rates represent the number of visitors who leave your website after viewing just one page. Apart from posting quality content, you have the luxury of using virtual tours to your advantage in keeping your visitors engaged.The logic behind reduced bounce rates is to maintain a huge number of traffic to your website and improve your search engine rankings. This leads to an unrivaled customer retention rate and boosts your online presence. 5. Go viral on social mediaCompelling virtual property tours have the effect of anchoring attention and are most likely to go viral.People love to share what's trendy, what's hot, and what's all encompassing of fun, loving and moving. If your virtual house tour has these characteristics, you can be sure it will be shared numerous times and spoken of on social media for some time.Social media, on the whole, have been used by search engines as ranking factors, therefore, if your website content goes viral, chances are you will rank positively on search engines. In the end, your positive ranking will reflect positively on your website. 6. Receive quality backlinksLike social media, quality backlinks are also key ranking signals. And they can benefit you by:Establishing you as an authority online;Strengthening your reputation;Expanding your brand’s awareness; and,Enabling excessive traffic to your website7. Stand out from the crowdIn essence, apart from what social media and quality backlinks offer, virtual house tours can give you a competitive edge in helping your brand stand out.The “wow” factor in real estate is well defined by virtual house tours, and that is exactly what you get, when you incorporate them into your marketing plan.In addition, customers will trust you more than your competition, and may even congratulate you for your ingenuity. Once you earn and solidify that trust, you can take comfort in customer loyalty and high customer retention rates. 8. Increased convenienceIn a physical home showing, it's always important to ensure the house is in a pristine condition. Even unforgiving, is the hassle of engaging cleaning professionals or asking the homeowners to make the necessary preparation for viewing.With virtual home tours, it's a different story. The house is presented in the best condition possible, less the efforts of cleaning agents and homeowners to declutter.The technology even highlights key features of the property that help in closing a sale fast. 9. A realistic experienceClick on the image and select 360° Virtual Tours for a realistic tour Virtual tours, in a sense, are permanent open houses. If you have subscribers overseas, regardless of the different time zones, potential clients can access these virtual tours anytime, anywhere, 24/7. This technological innovation has the propensity to create and instill an immediate sense of ownership; and those that are susceptible to this experience are the ones that can easily imagine themselves owning and living in that property. Bottom lineThe task of sending photos, videos and floor plans have been made simpler by this particular advancement in technology.The essence of virtual tours is that, you can easily customize background music and narration with a single listing; thus, building on customer experience.Once on Hausples’ website, you can later do adjustments or add extras based on preferences.Create a stellar virtual tour for your listing with Hausples 360° Virtual Tour Service If you're ready to reach more clients and take your real estate investment to new heights, email [email protected] or call +67575393248 now.

Brimming with potential for a robust shopping and office compound, a paradigm of flexible workspaces at Koki Bay Commercial Center are waiting for you to inject your own style.What’s more, nothing spells “ideal” better than the strengths of this property when viewed under these perspectives: PersonalitySuitable for spin-off professional services, as well as newbie retailers.Promotes adaptability and collaboration among employeesAccommodates a variety of tasks to be done quickly, compared to breakout workspacesBest square-foot-per-occupant efficiencyA dynamic, versatile work environmentScalableCaters to overflow areas to accommodate additional or temporary staffs LocationAs important as they come, the location of your business must be easily accessible by your customers, clients and your team.Owing to that fact is Koki Bay’s address, simply because it’s a minute’s walk from Koki’s main bus stop, the old Koki market, and the recently erected Koki Fish Market. Foot trafficThe beauty of Koki Bay’s location is its affinity with foot traffic - and lots of it. “Proximity to the major Koki bus station, as well as the Koki market and Koki fish market being on either side of the property, means that the foot traffic is incredibly high,” said Kitogara Limited’s project manager, Daniel Hii. Now, imagine from being able to strategize your marketing plans, to hosting events around peak foot traffic times in one location with ease? Because you’ve got what it takes to command raw foot traffic?Your only challenge is setting up and making yourself known. ParkingParking will always be an important consideration for clients, customers and staff alike. And not just any kind of parking, but sufficient and secured onsite parking, and Koki Bay Commercial Center ticks this off with both eyes shut.Notwithstanding, the parking spaces allow tenants to make the most of the beachfront views and the restless Koki skyline. WellnessSeems funny that we had to mention wellness here, but it is inspired by the lengthy sidewalk that links Koki and Ela Beach.You see, a typical day for most employees looks something like this: Sleep >> wake up >> breakfast >> work >> lunch (fast food) >> work >> dinner >> SleepOf course, “keeping fit” or the likes of it are foreign to this routine. But you can change this with end-of-trip facilities, so that your employees have the opportunity to exercise by walking, cycling or jogging to work and from work; amidst their busy schedule and vulnerability to unhealthy diets. When you put two and two together, you have Koki Bay Commercial Center to thank for.  SecurityUnsurprisingly, there is no other property type that requires a comprehensive security system than a commercial property, because of the security concerns and challenges it presents. This gives way to a security program that’s unique and customized to the property’s security needs, and you can expect the same with Koki Bay Commercial Center, 24 hours a day, seven days a week. DesignThe aesthetics of a flexible workspace is crucial when determining its design, because design alone impacts on a business’ image and reputation in the market.Following design are functionality and appeal. Why else would we want to account for this aspect, if it weren’t true for Koki Bay’s flexible workspaces?On top of that, these flexible open floor plans are presented as blank canvases, so you can see them in your own design - you decide how you want to be perceived by your customers and clients.With adequate natural light and refreshing views of the beachfront, each 300m2open office plan is split over two levels, and are equally worth K15,000 (+GST) per month (negotiable). Room to growWhile it can be difficult to know exactly how much room your business may need over time, looking for an office that has room to grow with your business is critical. With Koki bay’s open floor plans, flexibility is key. So if you’re looking for a space where you could potentially expand, or go for a shorter lease or one that will allow you to exit should you need to, Koki Bay Commercial Center is an opportunity you cannot ignore. Mr. Hii added that each office space within the compound is ideal for up and coming firms, who require a work space for team expansion and flexibility, such as architects, surveyors, and retail suppliers.Basically, these flexible workspaces are defined as open floor plans with ceramic tiles throughout, sufficiently catering to separate male and female restrooms, plus a kitchenette - the kind of things one would expect in a modern turnkey office space.Moreover, Koki Bay Development is a dual building compound (Building A and Building B), and currently Building A accommodates a supermarket, a medical clinic, and a fried chicken outlet which is distinctively found on either side of the compound.“For the available units, the development is great for a modern open office space or retail opportunity,” said Daniel Hii.Tenants can rest in the comfort of knowing that Kitogara Limited is an experienced commercial and residential developer, whose directors have international experience in developing commercial complexes in Australia, Malaysia and Singapore. In PNG alone, Kitogara’s success is evident in projects such as Waigani Village and Rainbow Heights.For further inquiries or to know more about Kitogara’s progress, visit hausples.com.pg, email [email protected], or simply call Kitogara’s Sales Team on 7254 4999.

Photo Credits: vectorstock.com Real estate investment is referred to as one of the finest ways to increase wealth. Since the ages, people have been believing this, and a wonderful fact is that it is actually true – both in the present time and in the past. Even better, the roles of real estate professionals in helping you become a homeowner, among others.From inquiries, to inspection, to closing of escrow, a real estate agent is your trusted guide throughout the buying process.  Here are a few reasons why you should engage a real estate agent, when you decide to become a homeowner.1. Offer Mortgage Advice And TipsWith experience comes job knowledge that pours over customer service etiquette, and relationship building out of many.Of course, when you decide to buy a house, there are certain obstacles you need to overcome, beginning with a mortgage. But it's not just any kind of mortgage that you can ask for. There are different types of mortgages with different purposes, so you will have to find the one that's suitable to your situation.This is where your real estate agent's expertise plays an important role. To make the most of it, your real estate agent has the best contacts to recommend, and offer tips on how to work effectively with a recommended lender. 2. Narrow Down Your Search CriteriaAs a tradition, every buyer has a list of things they need and want in a house. Just like sculpting an image out of a solid matter, this list narrows down from unwanted factors to the house of your dreams.Most often then not, just by reading your list, your real estate agent will know exactly the property that mirrors or closely matches your criteria, inclusive of the location and price range.Moreover, if you understand how a listing agent’s website works, that’s what a real estate agent can do for you in-person. 3. Craft A Solid Offer On Your BehalfThere are certain rules to professional writing to adhere to, if you want your reader to quickly grasp what you're trying to convey.Rules like understanding your audience, spelling and grammar, write like you speak, structure, and context, all are paramount to the basic rules of professional writing.These rules or principles apply across industries, and real estate is no exception.As far as real estate deals and offers can admit, a real estate agent has the intelligence to draft up a solid deal or offer on your behalf, when you’re on the verge of making an offer to the seller.Real estate agents understand your audience, and so will know the kind of lingo to use, in order to get positive feedback. In the end, your rights as a buyer are protected and the seller goes away impressed.Seems like superhuman, does it? Rarely. Just enthusiasm, experience and repetition - a typical day in a real estate agent’s line of duty. 4. Negotiating PricesBeing in the field for some time, professional agents understand the importance of putting their clients’ interests first. Not to mention the value in helping their clients in a home buying process.There’s more to buying a house than just getting a mortgage and closing a sale; that’s why it’s called a process - a home buying process. And in that process, you go through stages or steps to get to the endgame. Among these steps, you will encounter the need to negotiate the price of the property.Imagine overpaying for a house, because you didn’t know what to consider and how to negotiate those considerations before partaking in a closed sale?Many buyers fall short of this understanding and end up disappointed once the buying process has concluded. They fail to understand that there are certain aspects of the property that can reveal its true value, and these are the things that provide a ground for negotiations, before the purchase goes through.Moreover, like professional writing, you must know what to say and when to say it, if you want the best deal possible, and only an agent can expertly accomplish this on your behalf. 5. Accompany You To A Home InspectionBecoming a homeowner is one thing. Knowing what it takes to become one is something else; none more so crucial than understanding the importance of home inspections or viewings, and why they are a necessary evil in a buying process.You see, with home inspections, it's not just about being present to admire the property and take it on face value "as-is". There's an inkling of eyes-and-mind to realize subliminal mediocrity, that go hand-in-hand with property inspections.For instance, while exploring different areas of the house you come across an issue, which, to your untrained and inexperienced mind, it's nothing you can't fix. So, without even pointing it out to the seller, you move on. But what you didn't know was that that particular issue has the potential to determine whether or not the home buying process should proceed further. This is why an agent will accompany you to a home inspection, as they have the eyes-and-mind to pinpoint the indifference - and are vested with the right to ask sellers to either do repairs, meet the costs or forget about selling at all. 6. Recommend professionalsProperty issues aren’t one hit wonders. Some are occasional, while some are regular. Yet, all are progressive and exotic, every time, from the one before. And each issue begins with an unconventional counseling. These issues appeal to specific professionals who make up the real estate equation such as home inspectors, lenders, contractors, and home maintenance experts. In your case, when the need arises, your agent is well positioned to recommend any of these professionals, in particular those that are highly reputable.Simply put, whatever your property issue may be, your real estate agent is there to advise and recommend. 7. Flexible communication with the seller’s agentAs a medium for communicating all pertinent information between concerned parties, your real estate agent will keep you and the seller on the same page throughout the process. This is where everything counts, such as:Relationship buildingEffective communicationUsing industry lingoProfessional etiquetteTransparencyProtection of your interestsAnd a host of bits and pieces that make up a valuable home buying experience. A professional agent in your team will tick off these points without hesitancy. 8. Monitor your mortgage commitmentWhen it comes to going the extra mile for clients or customers, no one does it better in real estate than real estate agents.Putting your interests first, and doing everything they can under the sun just to give you a good experience of their services, real estate agents have what it takes to make it happen for you.One way they do this is by keeping tabs on your loan status, and offering advice on what to do and what not to do before your loan is approved. It’s their way of saying “thank you for choosing us as your top of the mind agent in real estate”.Sounds like fun? You haven’t seen nothing yet! 9. Work around escrow and your closing costsThe home buying process doesn’t stop once an offer or agreement is reached. Escrow and closing costs will follow, and where they surface, your agent is on hand to help you navigate through them in a streamlined manner, before successfully closing.But between there and then, you have title transfer, home insurance, exchange of money and related documents, attorney’s fees, pest inspection and the like to deal with. They all fall in immediately after an offer has been agreed to, and just before a transaction is marked “closed”.As you can see, there’s lots to do in that short time frame that you’re vulnerable to make mistakes. But not unless you have an agent by your side will your home ownership journey be one to remember for quite some time. Bottom lineYour dream of homeownership will only become painstaking and tedious, if you don’t understand the process and what it takes to sail through with ease and bright sparkling teeth. Worse still if you skirt the assistance of a real estate agent.All things considered, whatever the issue is in real estate, your agent is your knight in shining armor.

You can't deviate from the fact that when you're window-shopping online for a house or an office space, you come across several that standout, with the ability to hold your attention to ransom.But just by having an outstanding property doesn't necessarily guarantee quality leads, a sale and an eventual close. Upon satisfying their inquiries (neighborhood, street addresses, proximity to amenities, price, etc), home buyers or would-be office tenants will compare listing results with their online searches. Without proper listing components, chances are the number of potential buyers or tenants wanting to view your property in-person would be slim. But do not sweat, here we share with you our 7 core components of a good property listing online: 1. Tell a story with your listing photosFirst things first, if you want to capture your would-be buyer's or tenant's attention, good quality photos are your magic bullets. Here, quality and presentation speak for themselves, and when done mindfully, a story develops; hence, you’ve created a piece about your listing - because in themselves, photos are non-narrated stories waiting to be interpreted.In addition, photos of your listing must comprise only the best and the most marketable strand of your property. Consequently, it is essential that you capture shots that count. That said, there are no limitations of the number of photos that you can upload onto the Hausples portal, and the more photos that you can provide will give your audience a better story. The order you would enterPhotograph your property in the order you would enter, beginning with the exterior, the entryway, the kitchen, dining room, living room, master bedroom and finally the other spaces. Some helpful advice when preparing for the photoshoot:Declutter: Remove clutter like paper work, clothes or any items unnecessary for the photo has to be absent from the photoshoot. For instance, in PNG, dirty dishes, scattered clothes, unmade beds, butt spear, and ashtray, etc., are commonly forgotten and mistakenly snapped. The logic behind this step is to try and make the property look like a display home.Show off nice fixtures: If a bathroom or kitchen has great fittings, make sure these are captured in your image.Open all doors: Always open doors in a home to create a larger feel and display the flow of the property. Opening doors that open onto an outside living area will give the feeling of space. Opening doors creates depth.Decide: Lights On or Off?: whatever decision you make, be consistent throughout the entire photoshoot. Avoid the middle of the day: this is the time when shadows are the darkest and overhead. With external photos, you want to avoid having too much shadow. Rain trees are a common sight around several suburbs in Port Moresby, so if your property for sale is in an area surrounded by raintrees or similar, make sure you take note of this. 2. Embed a video into your listingApart from virtual tours, real estate videos have proven to be one of the most important marketing tools in the hands of real estate agents.Where necessity is a mother of invention, real estate videos have transformed the way agents do their marketing, and have always been for the better.A great property video - be it from a virtual tour via a phone, or an aerial footage of a drone - is an invaluable resource for a home seller, because it projects a chasm of intricate details, compared to photos and textual descriptions.Property videos are considered impactful and of good quality when would-be buyers or tenants hoping to get a little bit more detail, end up getting more than what they bargained for - and are excited about the experience.For instance, say an aerial drone footage was embedded to your listing. This can make for great marketing strategies, because you’re not only covering the street and the property itself, but the neighborhood as a whole. Be it buying or selling a property, quality videos are signatories to a high-stakes process. However, the overriding advantage is that either process can be simplified further.In addition, Hausples also supports video embeddings, besides multiple photos. 3. Add a 360° virtual tourAlso known as 3D tours or 3D walkthroughs, virtual tours are designed to allow potential home buyers or office tenants to take a digital tour of a property, both inside and out.This technology gives would-be buyers or tenants the ability to explore different areas of the property, as if they were there in-person, and from which angle. Virtual tours command the same respect as Street Views on Google Maps, only that they are indoors.In a different light, listing videos fall short of being interactive. Thus far, they are more of a child's play and from time to time are usually accompanied by music and narration.Unlike 3D tours, the viewer has no control over which space to explore and from where they can begin exploring, i.e., the viewer has no control over the movement of the video. Virtual tours also come with an interactive floor plan. Meaning, virtual visitors are given a distinct view of the property’s interior, at the same time are able to easily navigate their way around, as if being there on-site. Hausples has now gone live with its 360° virtual tour, and the following three examples represent this service inclusion:Click on any of the images and then select 360° virtual tour Worthy of note, as a matter of choice, virtual tours shouldn't be viewed as more upscale and advantageous over professional photography - real estate photography has its merits and will continue to remain as a crucial part of every property listing.Notwithstanding, virtual tours should be considered as complements of a property's marketing arsenal, that helps to fuel interests for property and make it stand out from the rest. 4. Give your listing an enticing title or headlineThe thing to remember here is without a proper introduction, you won’t be taken seriously. But with a compelling listing title, you can bet your bottom kina all hell’s gonna break loose.As a rule, alongside your photos, videos or 3D virtual tours is where your complimentary and attention-grabbing headline should be - 50 characters or less. No need to squeeze in a bulk of text or even get whimsy.For starters, review and research newspaper articles, magazines or online listings for the different types of headlines, in order to get a good handle on crafting a suitable headline for your own listing. The trick is the headline that instantly captures your attention, is the one you should adapt to your situation.Here, you will focus mainly on your "what" and "where", and forget about "why", "who", and "when". 5. Provide detailed information on your property listingOnce you've accounted for steps 1 to 4, now it's time to ensure that your listing(s) are well documented and without error or discrepancies.If you want to get your property in front of your would-be buyers or tenants, plus you want them to take your offering seriously, make it your business to check several times that all required information about your property is given.There are certain listing information that synchronizes with search filters, such as price, street address, type of listing, age and more. And if they are either missing or incorrect, chances are prospective buyers who are after a property like yours will not come across it.As an example, if you put the property price as “K1”, then anyone searching within your property’s real value (or range) won’t see your listing.Again, if your listing has limited information, an indelicate description and just a handful of poor quality photos, your potential buyers will continue to pass your property for ones that are more remarkable in all aspects. 6. Listing descriptionEvery listing description begins with an opening statement, and precedes one or two paragraphs that dresses the property for sale with at least two features and two benefits.The rest of the copy must be crisp, which will be the focal point of each feature and benefit introduced. For instance, a barbecue area is a feature. Relaxing by the barbecue with friends and family for a jolly good time is a benefit.It's important that when writing your listing descriptions, you must choose your adjectives carefully. Real estate selling involves a variety of descriptions to create value in the minds of prospects, so that a transaction can eventuate. Choosing the right adjectives can ensure a successful closing. 7. Featured ListingHausples has over 3,000 available properties at any given time, and are ordered based on the age of the listing. That is, the newest listings appear first and the oldest last. As new properties are listed, existing ones are pushed down the chain and impatient buyers may only look through the first few pages. This means that, regardless of how good your listing may be, it might not be seen if it’s on the third or fourth page.This is where a featured upgrade can solve this problem, and make your listing stand out from the rest. In essence, once your property becomes a featured listing, it will always appear above a standard free listing in the search results, and will be one of the first to be  seen. All the more, it will be viewed more frequently, receive increased enquiries, and ultimately it will sell fast. A small investment can bring excellent returns! Bottom lineIn this day and age, a good number of real estate window shoppers head online to inspect properties, before arranging an on-site viewing. With the conveniences of technology, more people are visiting the online world and having a good property listing will attract better interest in your properties. This is why it's more important now than ever to stand out online, with your property for sale or lease.To know more about Hausples’ 360° Virtual Tours or Featured Listings, or to know more about any of the tips provided, you can email: [email protected] or call: +6757539 3248.