L. Keller - DECLUTTER AND ORGANIZE YOUR HOME AND BUSINESS a step by step guide for beginners & experts: More than Real Estate Investing:How to buy & remodel your House ... to profit and resell (HOME & BUSINESS)

DECLUTTER AND ORGANIZE YOUR HOME AND BUSINESS

how to buy, remodel and edit your space to profit and resell

L. Keller

CONTENTS

BUYING FIRST & SECOND HOME

Chapter 3: Invest in 2020 after the
Corona-virus

Startup and Business Management

BUYING FIRST &

SECOND HOME

How to make short and long term investments, decorating your own house or organizing a rental property to profit passive income opportunities.

A guide to buy and resell

L. Keller

.think about your real estate business over 10 years

Chapter 1: Invest in Holidays homes

BUY TO RENT: HOLIDAYS HOMES

In the previous years there has been a loud explosion of the concept of renting for tourism purpose, dictated by the news introduced by Booking.com, which was launched as website dedicated to exclusive for rooms to rent for hotels (so intended to professional organizations belonging to hospitality ground) then converted its offer expanding to private sector, with the availability of renting homes of owners and not specialists. With the arrival of Airbnb.com, the website keen to all types of private rents, from room to entire flat, from the boat to the camping tent, the concept has become decisively much more popular until coming up to be a proper and real trend and a real boom, so fast that not even legislative and tax regulations have kept up: initially there was not even an imposition of taxes well delineated by the rules that determine which subjects were deputies or not to practice this type of activity. Anyone found in the last three years had thrown into this type of business, buying houses, letting rooms or camper or any other thing, succeeded gathering savings that in some cases were real and proper pocket moneys end of month to cover the costs of bills, while in other cases it was converted into a second job or a semi-professional world where draw important gains.

But what happens when it swells a lot like a balloon and in a very fast way without being worried about how much is it blowing? It bursts.

For a couple of years, several municipalities, areas or regions, were struggling with the license war: as there was a regulatory hole or a novelty, they tried to repair by regulating the deputies of this activity, but making a huge mistake: they thought too big as utopia, without thinking about the reality in force. There had been bizarre legislations, architectonically unpractical and then the variations, between the licenses issued and those that should have been issued, with following legal trials: the result is the he result is that the profitability of holiday homes has collapsed even before they put a remedy on it, because the market runs faster than the bureaucracy, and those rules may be valid in a few years, if we are lucky enough to find ourselves in an another prosperous real estate economic cycle, but now is of very little use.

When I say that the system is collapsing I would imply that has happened what the analysts and we experts were bee observing: too many people who have secretly started to carry out the same activity together. Caution: am I saying that nobody makes more money with holiday homes? Absolutely not, on the contrary: there are people who earn will continue to earn because they bought using certain selection criteria that are always winning horses, and there are some organizations that will keep watching because they are well structured and they know how to present themselves, distinguish and evaluate their investment during good and bad times. But this book is addressed to small investors, or rather for beginners, so I have to worry about pointing out that, unlike in previous years, we will no longer be able to buy a random property, or the first one that seems to us to cost little, outside the area, without doing a prior study. That because, in a time frame of fat cows like before, with no rules, it was all worth; but changing the economic cycle, only the best and the most advantageous quality / price for the customer will advance and produce income, given that the demand will be significantly lower than in previous years. It is unquestionable, from interviews and videos that I had recorded in the last months of 2019 (even before the covid-19 emergency that hit the world and that will lead to important economic damages in all sectors and to decisive changes especially in the tourism sector) that I had however long seen advising my clients, owners and investors, that in 2020 the rules would change. As for the holiday homes, there were the signs and the first feedback from owners who began to sell their investment, in many cases only after two or three years from having assembled it. It was a suspicious attitude: why was a "so profitable" business with such an important outlay of liquids dismantled in such a short time? Has anyone ever believed the fairy tale that these people made too much money, but had they tired of this type of investment? All lies: when an investment really works there are only two reasons why an owner decides to sell: either he wants to maximize his profits, but then in monetary terms it is never a deal and you have to do your own thing well and predict whether in the in the long run there will be the possibility to amortize a possible purchase; or is lying and does not earn so much!

Bingo: here The reason.

The truth is that Holidays homes, in the long term, are a big deal for a big organization or, in the contrary, it is a great deal for the madam Maria who in her free time leases a room in a basement in time to pay for the light, but they never have been and will never be for a common investor. Given that all still are living over the moon and still thinking of buying a house with the famous 100.000 euro of the grandpa (amount often out of market that represents sometimes just four auto places or a mini flat in a big city; in outskirts it is allowed the purchasing a full modest house), you must absolutely study and perceive that there are some fixed prices not indifferent when it about buying and reselling real estate properties and above all there is a dispute on the on the repayment of the cost that surely requires you to think about your business over a period of at least 10 years.

Ten years? But if the boom of the Holidays homes blew up and it is deflating in less than 5

Of course, in fact except the two cases mentioned above, for all the rest it is been just a trend or a soap bubble, because who does not have a clue to see in the right time when there were deflated pieces or who was thinking of making out of it a lasting life is getting prepared to survive during harsh times. It must be said that who bought in relevant or main positions, I mean sea view, forefront of walk or close to symbolic areas, in centre or any level of property and special features (attics and city houses, very rare commodity), will never lose anything of its equity! But instead who invested in unidentified places, guided by the only one discriminating to buy at a low cost, if he has lost the train of favourable economic cycle, he will encounter many problems in the new year both in selling, and continuing with this type of rent. Remember always that, in our analysis we always take into account subjects that undertake an activity with all the permissions and the respect of rules, therein including tax and contractual ones. In statistics are not included those that operate from the borders allowed by the law or with non-legal devices, aimed to stay afloat and so they are unauthorized or illegal to work.