Buying a home is an exciting time, and often not as difficult as it may seem. All you need is a little information. You need three basic things to purchase a home: good income, good credit and a good amount of cash. If you are lacking in one area, don’t worry, with a little effort, you can find a solution.
For example, if you have a lot of cash, your income and credit may not matter. You simply pay for your home outright. That is the ideal situation. You can usually negotiate with a seller for a lower purchase price because you don’t require a mortgage approval. You are a simple, quick transaction to the seller.
You may be in the opposite situation. You could have a good income and excellent credit, but little cash saved. There are options for you as well. You can find many loan programs, especially those for first-time homebuyers, which offer low down payments, sometimes as low a 3%. You will have to pay for private mortgage insurance, but
When you buy a home, you want the best possible price. This often takes a bit of negotiating on your part. Many buyers dread negotiating when buying a home. Money is an emotional topic. But remember, this transaction isn’t all about money. It’s about making the seller feel like he or she is getting the best end of the bargain.
Start by not setting a ridiculously low first offer. This doesn’t get you off to a good first impression. Often, the seller is offended and won’t make a counter offer back to you at all. You may have thought that by low-balling it, you would come out somewhere in the middle — but that is a bit of a gamble. Sometimes, the seller will even counter with a higher asking price than the home is listed for. This will often happen in a seller’s market. If you make a low offer, be ready to defend why you are offering so little. Add your reasons, such as potential repairs, without being offensive. Sellers are more
Why property, some people ask when looking for an investment. Well, as far as I am concerned, property investment is, and always has been, the most powerful type of investment for building wealth. It has been said that over 90% of the world’s millionaires got there by owning property. The reason property is such a powerful way to build wealth is due to one key concept: leverage.
Once I realised this, I didn’t look back. Now if you are an experienced investor this may be obvious, but for the benefit of those who haven’t seen the light, let me explain … Leverage is your ability to magnify your returns by using other peoples’ money (in this case, it’s usually the bank’s money).
To give a clear example, say you have £20,000 to invest. This can be a lump sum or by releasing equity in your main residency.
So what is the best way of investing this money?
Option 1 – Stick it in your local bank
Considered by some as the safest option, “at
You want that dream home – you’ve found the perfect place for you and your family to spend the next years in, building a home, planning for the future, establishing a base. Congratulations on your willingness to commit and grow. Unfortunately, it’s not that easy to get that dream home – the confusing world of finance and banking may make it difficult for you to understand mortgages and deposits at times. The fact is that you should start saving – now. The sooner you start, the larger the deposit you will be able to put down, and the advantages of this are enormous when you look at the long-term benefits. But why exactly is that? And how do you start accumulating? Here are some top tips on saving money for a deposit for your dream home.
The importance of the deposit
The deposit that you yourself can put down as partial payment for the house and all services that come with it has a great effect on your long-term mortgage commitment. This, in two very important ways – combined, they have an accumulative effect. First of
In capital reserve fund studies we usually assign a useful life of twenty years to a properly maintained pavement. With prudent management, that life can be extended. The sealing of pavement cracks and seal coating on a three to four year cycle is, in our opinion, an absolutely essential part of pavement management.
The seal coating replaces the asphaltic binder lost to evaporation. Without its binder, the aggregate begins to crumble, encouraging surface water to infiltrate down into the sub-grade. One way to spend money and get little for it is to patch only the part of the roadway width that has failed. That remedy may certainly seem intuitive, but if shoulder drainage pockets in the sub-grade up against the deep patch, you have a set up for frost heave problems. The better solution would be to spend a little more money and cut out the full width of pavement and then fill it with patch material.
The usual way to rehabilitate existing pavement is to overlay it with a minimum thickness of 1.5 inches of bituminous concrete. Here is where you can buy (literally) yourself some longevity. Make sure your paving contractor addresses some key
When house property is purchased by the buyer, he finds many benefits in its purchase. Only when the buyers finds adequate benefits in the house property, he will goes on for further continuation of the house transaction. Generally house property comes up with more number of advantages and benefits to make the buyer profitable. Nowadays house property finds a good demand for the houses and periodically more number of houses is listed for sale to satisfy the demands of the buyers. House property market always finds fluctuation every now and then. Though this fluctuation occurs regularly home market goes for good price consideration. There are many points to be listed for the benefits of the buyers.
Nowadays, most of the people realize the value of the house property and tend to purchase the house property for a reasonable price consideration. Since house property always finds fluctuation, good price consideration is realized for the house property. More number of houses is listed in the house market to satisfy the needs and requirements of the buyers. Though the demand for the house property is increasing in large number, there is an equal supply of houses. Price
There are many things to take into account when renting out a property. One of these things to take into account is how much you will rent the property out for. To determine how much you want to rent a property out for you must know the rental rates. The rent rate is the average a property will be rented out for in the neighborhood in which the property is located. The recommended thing to do is stay close to the average.
If the rent is too high it will take a longer time to find a person or a family to rent the property out to. If the rent is too low and something has to be replaced or fixed it can eat up all your profits. When picking a person or family it is important to do a credit check to see if they are consistent and if they will pay on time. Having no credit is not necessarily a bad thing. Some people rather save up then borrow money. In that case they might not have any credit. One other thing to make sure is that the earnings of the house whole you are
The law of property is a branch of private law which regulates the relationship between persons and things, or property. This branch of law provides rules prescribing the manner in which someone acquires rights in property, the manner in which these rights can be transferred, and it provides the remedies available in the event of an infringement on such rights.
There are two main types of right that a person may hold in property, namely: real rights and personal rights.
The only real right recognised in our law is the right of ownership. This is where a person has complete title (or control) over a thing or property. It is important to note that a person may also hold a limited real right in relation to property. This is a subcategory of real rights but an important distinction is that they are held by a person in relation to someone else’s property. One can never have a whole real right in relation to someone else’s property.
A personal right is one against another person for the performance of an obligation, i.e.: the other person must either do or refrain from doing something. These rights are
The interest rates are at their lowest for more than 30 years. Lenders who want to secure your mortgage over a long term are keen to win your custom and offer particularly good deals for first time buyers. Sellers too are always keen to secure a deal with a first time buyer because your purchase does not depend on anyone else and therefore the likelihood of the sale going through is very high. If you set up an agreement in principle With a mortgage lender before you start viewing properties you are in effect a cash buyer and are in an excellent bargaining position.
The first step to buying your first property is to know how much you can borrow. Lenders usually agree to three times the first income or if you are buying as part of a couple, three times the first income plus the second income, or two and half times the joint income. However it is sometimes possible to borrow four or five times your salary. You can approach lenders yourself or you can enlist help from a financial adviser. This is usually a free service to you and by using someone who is
There are many advantages to both new and existing homes. Which one you purchase depends on your preferences.
When it comes to buying a house, new can be very nice. But existing homes have many benefits as well. You should consider all of the benefits to each type of home before you make your decision.
Why buy an existing home?
When you buy an existing home, you are usually able to buy a larger home for your money. New construction is usually priced by the square foot, a more expensive way of determining value. Construction costs are greater today than they were 10 years ago. When you purchase an existing home, the square feet are not calculated based on today’s square footage parameters. The cost is based on the age, style and location of the home.
You are often able to find better quality of appliances and features in an existing home. Most new homes contain “Builder’s Grade” features. These are not the top of the line appliances and components. An older home has probably been modified and remodeled since it was built. Homeowners often upgrade their appliances and carpeting as they can afford
Understanding the rules of real estate auction will help you win the bid and save money. The spring selling is coming soon. So if you are interested in real estate investment, you must equip yourself with these powerful tips and knowledge.
On the day of auction, you must be there early to make the last minute inspection on your real estate property. Read the contract of sale and auction rules carefully. These contracts should be on the display for at least 30 minutes before the auction begins.
Here is an important tips to remember. If the real estate property is passed in below the reserve price, the agent of the property will first negotiate the highest bidder for the purchase of that real estate property.
The auctioneer may soon announces that the property is going to be passed in. It is a good strategy. The auctioneer want to make sure you are the highest bidder to secure the option to negotiate.
If the property has passed in, the auctioneer can not re-open the auction for the later bid. If you are securing the right to negotiate, how much time do you have with the
More people than ever are looking at buy to let property. They want a second home they can enjoy an appreciating capital asset and the opportunity for rental income.
There is no better way to make money quickly and with low risk than investing in property in the right location and this article is all about getting the best return on your money.
More investors than ever are looking to buy to let overseas as properties are cheaper capital growth potential can be up to 100% per year and in the right area rental income is great.
Why Look Overseas
In the US and UK there have been massive increases in real estate prices over recent years, but the market is slowing and we already are seeing price falls.
The buy-to-let market in many industrialized countries has become less profitable than it was at the start of the decade and with slowing economies in developed countries investing overseas is becoming more popular and lucrative.
Destinations for capital growth and income
Property markets in other countries are performing well and the scope capital gains on buy to let properties is huge.
Get a Mortgage Pre-Approval!
You need to know what you can afford. You have to be realistic before you jump headlong into it. We suggest making an appointment with your bank’s mortgage representative and having a serious talk. Don’t be afraid to shop around. Check all banks and compare rates. Don’t be afraid to haggle – most banks will knock off 1% from the posted rates. Ask for it – you deserve it. This is the biggest purchase of your life. Also find out how long the rate will be “locked in” for. Usually 60-90 days. If the rate does go down in that time period normally your bank will give you the lowest rate in those 60-90 days, make certain that this is the case.
Make your Home Wish List
Do you want a townhouse, semi-detached or a detached home? What about a condo apartment? How many bedrooms do you need? What about a backyard? Is it something you want – will you be able to maintain it? Location – do you need to be near a school for your kids?
Consult with a Realtor
to find a home to suit your needs and price
First, find out what type of home loan works for you. There are many different kinds of loans available in today. You will find just the right combination that works in your favor.
Second, research available properties. If you are a first time buyer, you may not want to try and purchase the dream home just yet. Look for properties that are within your price range and budget. You have time, so carefully choose your home. That dream home will be available to you in no time. You need to establish yourself first.
2. Time frame:
How soon would you like to make the move into a home of your own. One good gauge, is with the ownership of real estate comes excellent tax deductions you may need. Another gauge is family. Do you need more space?
3. Availability of funds:
Do you have funds for a down payment? If not, there are many loan programs available to you that require no money down. You can go with 100% financing, usually at a fixed rate for a period of 2 or 3 years at which time the rate will change according
When talking about Rental Property Investments, the term ‘working capital’ has to be understood. There are two concepts of working capital: gross working capital and net working capital. Gross working capital is the total of all current assets. Net working capital is the difference between current assets and current liabilities. It may be mentioned here that though this concept of working capital is commonly used, it is an accounting concept with little economic meaning. It makes little sense to say that a firm manages its net working capital. What a firm really does is to take decisions with respect to various current assets and current liabilities.
The management of working capital refers to the management of current assets as well as current liabilities. The major thrust, of course, is on the management of current assets. This is understandable because current liabilities arise in the context of current assets. Working capital is a significant facet of rental property investments because investment in current assets represents a substantial portion of total investment. Moreover, investment in current assets and the level of current liabilities have to be geared quickly to changes in sales. To be sure, fixed asset investment and
Purchasing real estate is a very difficult and sometimes frustrating task. Often it is more difficult than purchasing stocks, bonds or mutual funds. However, there are ways to purchase good properties at low prices that will sell or rent for high prices. There are properties on the market that are unknown, and these properties are the ones on which you can get the best deal, rather than when you are purchasing a home for your family or a home to rent or sell.
A good real estate investment can generate a decent monthly income or lower your monthly payments. So it is very important that you understand how to purchase the right real estate.
First, you must know the reason why you are purchasing the property. Real estate is not for everyone, so be sure to clearly understand your motive for wanting to purchase real estate. You can ask yourself these questions.
1.) Are you buying a home for yourself and your family?
2.) Are you looking for a home you can sell or rent?
3.) Why do you want to purchase real estate now?
4.) What type of property are you
When it comes to buying a house, the contract seems simple enough. It basically says that the house will be bought by certain terms, how much the seller will receive and who is paying for what.
However, there are many details that you shouldn’t overlook.
When you Realtor writes your contract, it is very important that everything be correct, down to the last detail. A lot can happen if a box is checked that shouldn’t be or one isn’t checked that should be. If the contract isn’t complete or the addendum is left out, there could be trouble in the future.
These little details could end up costing you a lot of money, or could completely ruin your contract. For example, a seller is looking for the money and the correct terms. What seems like a little item can get your offer rejected in a competitive situation.
You will want to go through the contract before it is presented to make sure that the written terms are what you are offering and agreeing to. Make sure that you pay attention to every little detail. Some of the most important items are:
It takes time and effort for a real estate investor to locate a deal. There are lots of properties for sale, but finding the deals has not always been easy. Fortunately, many tools and websites now available are making it easier. There are sites which help generate leads from motivated sellers and there are sites which provide valuable information to assist the investor in determining property values. As a result, investors can get leads and do most of their analysis before they even see a property.
One site that is good for determining property values, is a subscription site called Real Quest (www.realquest.com). Real Quest allows subscribers to look at liens, tax records and comparable sales. Another site, http://www.zillow.com which is free, even shows an aerial view of some properties. In addition, many of the counties across the U.S. now have free access to tax records on-line. And, of course, if the investor is a licensed agent they have access to the MLS. Taking advantage of these and other on-line resources, an investor can calculate the retail value of a property without even seeing it.
Figuring out the offer amount is important, but most deals are
There are several shows on television that feature people buying properties and then flipping them after minor repairs. Many people make a profit doing this, but if you really pay attention, you will often only see what the house could make the owners. The shows often leave out when and for how much the home sold for.
Many of the richest people in the world started out in real estate. That’s why real estate investment is so popular. But what are some essential things you should know before jumping into real estate?
1. Know how market timing works.
This means that you need to not only research how market cycles work, but that you need to sit back and watch them for yourself. The fact is that markets go up and markets go down. A lot of successful investors aren’t looking for a three-month buy and flip. They buy when the market is low and sell when it is high.
2. Know how to analyze real estate numbers.
You have to be able to identify all of the factors that are affecting your profit.
There are four major parts of real estate
Mention “real estate investing strategies” and the first thing that typically comes to mind is buying and selling. But a strategy often overlooked and underutilized is the option—and the smart use of options can generate some fast and impressive profits.
An option gives the buyer the right but not the obligation to buy—but the seller is obligated to sell. Combine the option with a lease, and you have an excellent tool to use when you have a motivated seller with little or no equity in the property, or one who doesn’t have time to wait for the traditional sales process to run its course. Instead of buying, you lease the property with an option to buy. That gives you control of the property and lets it generate cash for you—but you don’t have to own it.
The rate of residential foreclosures in on the rise in many parts of the country. A pending foreclosure for any reason is just one of many situations where lease option strategies can be used. Other situations include sellers seeking debt relief or facing personal situations such as a divorce.
“Lease options are a great way to get started investing