Ontario Tax Sale Property     

Providing free tax sale property listings for Ontario, Canada    


How To Avoid Negative Equity In Real Estate Investment Financing




Source: Joel Teo - United States

Real Estate Investment Financing is simply industry jargon for a real estate investment loan. In a bad property market where rental yields are low, the most dreaded word that you can say to a real estate investor is negative equity. So what is negative equity? It is a situation which arises when the foreclosed value of your property is less than the price that you paid for it and in certain states like in New York, the mortgagee (the bank) can then bring a deficiency action against the owner to reclaim the difference.

This article will therefore go on to examine three ways to prevent a negative equity situation in the longer term.

The first key to preventing yourself from a negative equity situation is always look at the downside of any investment and analyze the rental yield of your property in a bad year. In real estate investment terms, this means that you look at the average rental yields of your property in the lean years to see if it drops below your monthly instalment for your mortgage repayment. I hate guessing, so the best way is to go to a real estate agent and ask them to generate a graph and then do your own analysis to see if your property rental would go below the amount that you are paying for your monthly mortgage instalment.

The second factor to consider is the price that you pay and the monthly instalments. Many people during a property boom, tend to overpay for their property and as a result, when the economy turns around, the changes of a negative equity situation arising is quite possible. Excessive exuberance in the real estate market like in the stock market can make you more likely to buy the property at an all time high.

The third factor is the rebound of a sector. Spend some time looking at statistical data. Which property sectors rebound more quickly than others in response to a good market and economy? By choosing your property investment right, even if the market is bad, your chances of a turnaround are better than the national average. This is also an application of the common adage of "making the best of a bad situation" in real estate investing.

In conclusion, by spending some time to consider the three above contributing factors and spending some time to analyze a property investment can save you much heartache later and prevent you from falling into a negative equity Real Estate Investment Financing situation.

Copyright 2006 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
About the Author

Joel Teo is the successful Webmaster of RealEstateInvestment101.info. Learn how you can make more money today from Real Estate Investment today and start generating a positive month




Next: How the Rich Become Richer

Previous: Investing in Foreclosed Properties



Add to Informational Site Network
Report
Privacy
ADD TO EBOOK








Tax Sale Property Listings

Canada:
Current Ontario Tax Sale Properties - EBook Guide

Ontario Tax Sales - 2018
Ontario Tax Sales - 2017
Ontario Tax Sales - 2016
Ontario Tax Sales - 2015
Ontario Tax Sales - 2014
Ontario Tax Sales - 2013
Ontario Tax Sales - 2012
Ontario Tax Sales - 2011
Ontario Tax Sales - 2010
Ontario Tax Sales - 2009
Ontario Tax Sales - 2008
Ontario Tax Sales - 2007
Ontario Tax Sales - 2006
Ontario Tax Sales - 2005
Ontario Tax Sales - 2004

Current Alberta Tax Sale Properties

Alberta Tax Sales 2014
Alberta Tax Sales 2013
Alberta Tax Sales 2012
Alberta Tax Sales 2011
Alberta Tax Sales 2010
Alberta Tax Sales 2009
Alberta Tax Sales 2008
Alberta Tax Sales 2007
Alberta Tax Sales 2006
Alberta Tax Sales 2005
Alberta Tax Sales 2004

Nova Scotia Tax Sale Properties

New Brunswick Tax Sale Properties

USA:
New York Tax Sale Properties
Texas Tax Sale Properties

Sheriff's Sales
Ontario Sheriff Sales Properties

Ontario Tax Sale Research

Listing by Date
Listing by Counties, Listing by Districts, Listing by Regions, Listing by Single Tier

* My Properties *


Latest Discussion Posts

>> Re: Welcome Back - First New Tax Sale Property in a few Months by Frank
>> Welcome Back - First New Tax Sale Property in a few Months by rob
>> Re: how fast can I know I am the highest tenderer? by JonSS
>> Re: I missed something! by JonSS
>> No new properties this week by rob
>> Re: Re: Island property in Gravenhurst Muskoka by Dave2
>> Re: Island property in Gravenhurst Muskoka by jt
>> Re: Island property in Gravenhurst Muskoka by Elvis
>> Re: Island property in Gravenhurst Muskoka by Jayz
>> Re: Island property in Gravenhurst Muskoka by link
>> Re: Re: Island property in Gravenhurst Muskoka by Dave2
>> Re: Island property in Gravenhurst Muskoka by Pfm1011
>> Re: If this goes to tax sale looks like a sh**y deal by Pfm1011
>> Re: Treasurer refused to release public info by Pfm1011
>> Re: Clarington new chapter for 4239 Lakeshore Rd, Newcastle lot by nbhomepro
>> Re: Re: Island property in Gravenhurst Muskoka by Dave2
>> Re: Re: Island property in Gravenhurst Muskoka by mountainman
>> Re: Island property in Gravenhurst Muskoka by mike7
>> Island property in Gravenhurst Muskoka by Dave2
>> Re: Georgian Bluffs by butchard
>> Re: Georgian Bluffs by bee
>> Re: Georgian Bluffs by Dave2
>> Re: Treasurer refused to release public info by mozzy
>> Re: Georgian Bluffs by Elvis
>> Re: Georgian Bluffs by butchard

Visit the tax sale properties discussion boards


Articles

>> If Real Estate Investment Is So Great, Why Doesn't Everyone Do It? by Bruce W. Ford
>> Streamline Your Tax Lien Investing Business by Joanne Musa
>> Escaping The Affects Of Tax Liens On Real Estate Investors by David Gass
>> THE SALE OF TAX DEFAULTED PROPERTY For California, USA by California Tax Department
>> A penny saved . . . is a cottage lost by Globe and Mail
>> Property Tax Sales by City of Cornwall
>> Canada Property Tax by Wikipedia
>> Massachusetts Foreclosure Process by frontgateconsulting.com
>> How To Buy Before It Gets To Foreclosure by D. Brownlee
>> A Real Estate Formula by Steve Gillman

View more tax sale property articles


Other

Tax Sale Property Books
Kindle

Tax Sale Property Links


Follow @taxsalesont



Privacy Policy