Secondly, the market for existing plantations seems intransparent and illiquid. For the seller, it therefore made trouble and needed time to find a suitable buyer. This is well aware of the buyer and he will put the seller under pressure to increase a liquidity discount to get, so its own IRR. Buying an existing teak wood Plantation: the perspective of buyers purchasing an existing teak wood plantation avoids certain risks for the purchaser. Firstly, the results of the project are clearly visible and the risk of soil quality and suitability of the site can be better appreciated. Rather has the difficulty to do due diligence and careful clarification.
Due to lack of data, a buyer does not seem needed some time to find out whether or not the called plantation has potential. For the discerning buyer, such opportunities are much more interesting, especially since he is better able to give an opinion on the expected volume of wood and the harvest due to the existing tree diameter. So, you can reduce the risk of buying into an existing plantation for the buyer. The second aspect is that the “lock-in” period 20 to 25 years may take in a greenfield project as is buying into an existing brownfield plantation investment depending on significantly may reduce the investment period for investors from the age of the plantation -. A shorter holding period means less risk for the investor. Also for cash flow estimates, various assumptions must be taken (inflation forecast, expected sale price, and wood volume). In the case of miscalculation, an estimate is by definition not the same as the actual result is the difference between the reality of less serious for a brownfield project as a greenfield project.
A greenfield project original assumptions are further extrapolated into the future and thus cause larger deviations from reality, as when a brownfield project. Further details can be found at Scott Mead, an internet resource. Conclusion under the point of view of the incoming Risk it might be wiser to invest in a legacy plantation. More clarity over several previously unknown variables (soil quality, effectiveness of the planting strategy), so that the risks can be reduced and the investment period is shortened. However, this approach requires more care, due diligence and attention to the price to be paid.
Real estate credit: 10 tips for the ongoing financing – terminate or finance connection (Berlin, 14.05.2012) anyone who has completed a financing contract, is bound to these many years. The regular rates are to apply in a timely manner or it threatens serious financial problems. But it is not enough to put the contract in the drawer, and no longer the financing conditions to confront the next few decades. Under certain conditions, a quite large savings potential is if financing can be optimized, for example, by replacing with a more favourable loan or by continuing with a reasonable follow-up financing. Below are 10 tips that any borrower can verify its ongoing funding.
1 keep you the market in mind informing you from time to time about current real estate financing. Speak your bank even when you finance for many years there. Often a discount is granted, if they refer to special offers from competing banks and the current low interest rate environment. 2. not regularly check your monthly input / output balance only the amortization and interest rates lead to spending every month.
Often, cheaper insurance or repairs as so far can be found through comparisons. You can set aside more equity capital and if necessary a special repayment increase your repayment performance, which ultimately leads to faster pursuit. 3. lease currently on low: When should a debt restructuring? This currently in the interest rates for real estate financing at very low levels. A restructuring of the current loan on another credit institution is tantamount to dismissal, for which many institutions charge a compensation (especially within a binding period of borrowing). Refinancing is worthwhile only if the interest savings of the new financing is so high, that compensation as well as the resulting additional costs more than be offset (such as processing fees or notary and land costs).
House & basic Rheinland gives important tips before you should well inform the purchase of a house or a condo. At the current interest rate situation, the real estate purchase with good preparation can become a profitable long-term investment. However, some basic instructions should be followed. House & basic Rheinland gives tips on the purchase of real estate. The most important question: Can I afford in the long term a real estate? With a few simple calculations to determine his individual options”explains the Chairman of House & basic Rheinland, Prof. Dr.
Peter Rasche. There should be equity of at least 20 percent. Many banks refuse already financing without its own means”, says Rasche. A simple rule of thumb for determining the financial framework: the disposable annual income around a hundred and then divide by the load factor. This consists of the current rate of interest and a repayment rate of recommended two percent. The financing costs should the closing costs for notary and tax, of a total of ten percent of the purchase price and the monthly expenses to be added. Also a reserve in the amount of one euro per square metre for rehabilitation and modernization should be taken into account.
For the price of real estate to add only existing equity. Then, nothing in the way stands a solid financing. Ask not only at the local bank. A database comparison always pays”, advises the Director of House & basic Rheinland, Erik Uwe Amaya. Even in mature allocation of funds, a comparison may be worth. Because many savings in the high interest rate environment were completed, these contracts are no longer attractive. The building society is often offered a rate conversion and thus balance interest rates retroactively adjusted. A conversion is not always pays for itself. Old contracts worth often even the mature concept as a funding component to waive”Amaya says. In a low interest rate environment, care should be taken on long interest rate. Run-time are recommended at least ten years. The repayment rate is one percent the duration should be extended to 15 or even 20 years. Otherwise, by rising mortgage rates, the total financing is at risk”, says Prof. Dr. Peter Rasche. Therefore a repayment of at least two percent and the possibility of unscheduled repayments are recommended. If the asking price is calculated and affordable, the oscillating now on the market can look around. Who wants to buy a property, you need to find the right environment and the right situation. This applies particularly to investors”, explains Rasche. The demand is sharply on the real estate market, especially in the urban centres. Here, the offer is already scarce in some cities. Noise, transportation, infrastructure, development of the direct environment are the most important guidance here. The main argument must be location, location, location”, so quick. The good news is”location found and as investors you want to know if is worth a purchase in the long term, the ratio of annual return must and purchase price are considered. Dividing the purchase price excluding incidental expenses by the well-let and this value is above the national average of 20, an economic return is questionable. Among long-term users of self also the feel-good factor is one of but in addition to the financing, the development is often secondary”Amaya explains finally.