This article will outline and briefly describe many of the main Purchasing and Annual Holding Costs incurred when buying a rental property. Please keep in mind that these items will vary from country to country and they do not take into account personal tax implications.
- Purchasing Costs
Purchase price ? the agreed price for which the property will exchange hands.
Renovation Costs ? money budgeted for renovations prior to the property been made available for rental.
Agents Fees ? in some countries it is common practice for the buyer to pay some or all of the real estate agent's selling fees/commission. However, in most cases these fees are paid by the vendor.
Stamp duty ? a duty placed on the purchase of a property charged by the local government for the registration of the property into the new owner's name.
Mortgage Application Fees ? charged by lenders upon application to secure a loan to buy the property.
Travel Expenses ? flights, car hire, and hotel costs incurred when travelling to personally inspect a property.
Solicitors Fees ? payable to the solicitor for all of the relevant legal work for the transfer of the property.
Research ? books, local suburban reports purchased to research a suburb.
Accountants Fees ? the property may be purchased in the name of a Trust or Company. There may also be a crossover here with the solicitor's fees.
Council Rates Cutover ? A vendor may have paid rates up to a time after the transfer of the property. The amount is then split between the buyer and vendor on a pro-rata basis.
Independent valuation / Engineers Report ? a vendor may choose to pay for their own independent valuation or engineers report to highlight areas of concern.
Miscellaneous ? this will include postage, telephone calls etc. It's also worthwhile to include a contingency should some of the above costs be more than anticipated.
- Annual Holding Costs
Mortgage Repayment ? payable to the mortgage lender to repay the loan used to purchase the property.
Property Management Fees ? if a professional property manager is appointed they will either charge a percentage of rent or a monthly flat fee.
Council/Municipal Rates ? charged for collection of waste and upkeep of local services. Sometimes these are paid by the tenant.
Maintenance ? costs for repairs and maintenance on the property and it's fixtures and fittings.
Bank Fees ? account keeping fees charged by the bank.
Landlord Insurance ? protection against theft, damage, non-payment of rent, legal costs.
Letting Fees ? some property managers may charge a letting fee for finding new tenants.
Pest Control ? protection against pests and termites.
Cleaning ? the property may require a thorough professional clean in preparation for new tenants.
Travel Expenses ? incurred when visiting the property at times such as showing it to potential tenants or collecting rent.
Local Income Tax ? may be charged by some local governments for the rental profits after any allowable deductions.
Land Tax ? an annual tax on the value of the land on which the rental property is built.
Accountants Fees ? payable for the administration of legal structures if a property is owned by a Trusts or Company.
Miscellaneous ? again, this will include a contingency should some of the above costs be more than anticipated.
Once all of these costs have been factored into your calculations you will be able to determine whether a property will be cash flow positive or not.
In closing, it is imperative that you seek professional legal advice before you make any investment. This will clarify the process according to your own personal situation and the county you are investing in.
Happy investing!
The pay-per-click ad writer has very limited space in which to persuade the reader of the ad to click and visit the advertiser's web site. In our experience, straightforward ads work better than cute or funny ads. Just about any time we've tried an ad that we thought was really clever, it bombed. Stick with the details. So...how do you use such limited space and so few words to compel the reader to click the ad? Following are five strategies that will make your ad writing much more successful:
1. Use the search terms in your ad.
2. Use a call to action.
3. Get the reader's attention!
4. Write from the reader's perspective.
5. Use buzz words like "free" and "guaranteed".
The first tip above, user the search term in your ad, is the most basic but perhaps the most important. You have to find the line between keyword/ad granularity and having a manageable number of ads. The more separate ads you have with few keywords for each ad, the more effective your campaign will be because the ads will more closely match the search terms. If you can use the exact search terms, or nearly exact, in the ad body, or even better, in the title, then the more closely the ad will match what the person was looking for. Search engine keyword insertion features make it easy to dynamically insert the keyword into your ad copy.
The second tip, use a call to action, is a basic copywriting rule. Tell the reader what to do! Search engines may not allow you to use the words "Click here", but if you have room, use some similar kind of phrase to tell the reader that he needs to take some specific action: "Visit now", "Buy now", "Come see", etc. One problem with including the call to action is the limited characters you have for your marketing message. Every character is precious, and the call to action will take up at least 7 or 8 of them. What we suggest is that you have one ad with the call to action in rotation with another ad that does not (so the second ad should take advantage of the additional space). Then see which one performs better.
The third tip, get the reader's attention, seems obvious, but it's not. You should focus your ad on whatever is the ultimate, greatest benefit your prospective customer would experience by visiting your web site. That in itself is a key point - you are not trying to sell anything with your ads, you are only trying to get them to visit your web site. That's where you do the selling. The ad is really an advertisement for your web site. You only have 70 or so measly characters to convince the reader to visit your web site. Make the most of them by saying something interesting that directly relates to the reader.
The fourth tip, write from the reader's perspective, means that you should use the word "you" and emphasize the benefit to the user of visiting your web site. Using the word "you" focuses the ad on the reader, so he knows that the ad is talking to him. Every word in your ad is precious, because there are so few of them. Combing "you" with words like "free" (discussed below) is a powerful combination because it places the emphasis on two things that people love: themselves and things that are free. You need to write something that absolutely compels the reader to click the ad because of the wonderful things she will discover once she does.
The fifth tip, use buzz words like "free" and "guaranteed", is based on the fact that there are certain words that get people's attention, and "free" and "guaranteed" are high on the list. Two huge tools in the copywriter's toolbox are giving away freebies - free reports, free samples, free memberships, etc. - and reversing the prospect's risk.
Everybody loves getting something for free. Is there any kind of product (such as a report) that you could create for little or no cost and give away for free? This is especially useful for service businesses. For example, if you have an accounting firm, you could prepare a report such as "10 Ways for Any Small Business to Cut Their Taxes by 16% Next Year". Then in your paid search ads, you could mention something about your free report. Our fictitious title also highlights another classic direct marketing technique - referencing some kind of very specific number. By saying "16%" rather than "10%" or "15%", the report title implies that the author has done some kind of research to specifically arrive at the exact number 16. It lends a sense of authenticity.
Risk reversal means that you guarantee your product or service so that the customer knows he can get his money back with no trouble - you take on the risk, not the customer. Many businesses offer a guarantee by default. They will do whatever it takes to make a dissatisfied client happy. Rather than hide this fact, they should turn it into a powerful public guarantee. If you have such a guarantee, you should test ad copy that mentions the guarantee versus ad copy that does not.
Much of this discussion is based on copywriting principles that have been around for years, tweaked to apply to the online world of writing for a very small ad space. If you want to improve your pay per click ad writing, there are two sources you need to tap into. One is the ads being run by your competitors. If there are ads that seem particularly effective, maybe you can borrow from them, customizing them for your own use. The other source is the work of legendary copywriters such as Dan Kennedy, Brian Keith Voiles, and Claude Hopkins. Seek out the writings of such legends and study what they have to say about creating ad copy. Combine what you learn with the five strategies discussed above and you will be on your way to being a master ad writer.
Both Tim Wright & Jerry Work are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Tim Wright has sinced written about articles on various topics from Home Based Business, Golf Guide and Interest. Tim Wright is a property investor and 'Green' renovator. For more information check out . Tim Wright's top article generates over 9900 views. to your Favourites.
Jerry Work has sinced written about articles on various topics from Blogging, Home and Internet Marketing. Jerry Work is president of , a Nashville-based company that specializes in