Monthly Archives: November 2016

Benefits of Owning Your Own Home

The security of owning the roof over your head, the feeling of contentment, satisfaction, fulfillment, it is the wish of most, if not all, Americans, it is what they call the classic American dream, it is called Homeownership.

Owning a home is the biggest and best investment a person can ever make and so he has to manage that investment to the best of his ability. It requires extraordinary commitment not only of funds, but time and attention as well.

There are disadvantages that come with owning a home like maintenance, financial matters, risk of losing equity and the risk of foreclosure.But above all these, there are also a lot of benefits that comes with owning your own home.

-It is the best investment.The value of your home appreciates which means that if you decide to sell it, its price will be much higher than your purchase price. Homes appreciate about 5% every year.

-It is a form of forced savings because you’ll have to allot a certain amount of money for monthly payments or risk losing your home. You also need to set aside money for future repairs or improvements.
-It can help you plan for the future with regards to your finances because mortgage rates are fixed unlike yearly increase in rent.

-It gives a sense of permanence where your family can live and grow.Emotional security goes with this.

-It gives you and your family security and piece of mind knowing that you have a home to call your own.

-It develops lifelong friendships.

-it develops the sense of roots of your family especially the children.Your family becomes a part of a community
-It increases self-esteem knowing that you possess something of value.

-It eliminates landlord hassles.You will have no more worries with regard to lease not being renewed and increase in rent.

-It gives you the freedom to redecorate, remodel, make improvements, have pets, change the color or the décor of your home to your own taste and as you desire.

-It gives privacy. Not unlike renters wherein landlords can have access to the place.

-It gives more space – like larger rooms, laundry area, storage area.

IMPORTANT THINGS TO AVOID BEFORE BUYING A HOME

HOME BUYING BLUNDERS – How do you avoid them?

Looking for a home to buy is a very exciting experience.Your emotion balanced with logic is the wisest thing to do. Educating yourself about this long and stressful process of home buying will result in the biggest investment that you will be making in your life.Wrong decisions may lead to an irreversible and costly mistake.

So, what should you avoid so as not to make this mistake?

-AVOID USING YOUR HEART OVER YOUR HEAD. You might fall in love with a home instantly forgetting that you are making a huge financial investment and that someday you might want to sell it, only to find out, when it is too late that your home is tough to resell.

-AVOID VIEWING HOMES ALONE. Bring your spouse, your children or a friend with you.You might miss out on some imperfections because of your excitement.Their point of view will surely be of great help.

-AVOID LOOKING AT HOMES YOU CANNOT AFFORD. Buying a home does not only mean a down payment and fixed monthly mortagages.There will also be expenses for repairs, maintenance, new appliances and furniture, property taxes, insurance.A clear understanding of your finances prevents wasted time.

-AVOID VIEWING HOMES WITH NO CHECKLIST ON HAND. You should have a list of everything you need and what you would like to have according to your priorities.

-AVOID PURCHASING A HOME IN AN UNFAMILIAR NEIGHBORHOOD. Spend some time in the area, ask questions regarding criminal activities, accessibility to schools, supermarkets, or churches.It is not only a home you are purchasing but the location as well.

-AVOID PURCHASING A HOME ON YOUR FIRST VISIT. Do not rush.Visit the home that you like twice, thrice or even more than that.Make sure that this is the home that you really want to settle in.Have a professional home inspection done to eliminate future headaches like the exterior components which includes roofing, gutters, downspouts and the interior systems which includes electrical, plumbing, flooring.

-AVOID LETTING THE SELLER OR THE AGENT KNOW THAT YOU ARE IN LOVE WITH THE HOME. Because in doing so, they could ask for a higher price.

-AVOID GETTING TOO PERSONAL WITH THE SELLER. Be friendly, but treat the transaction as professionally as possible.Remarks about changes and future repairs might not be taken well by the seller.

When Real Estate Lawyers Become Useful

Getting involved in a real estate transaction is truly a milestone in a person’s life, a process that takes thousands of dollars and sometimes months to complete. With something so complicated, there is certainly some merit to involving a lawyer in the proceedings.

While many people may bristle to the thought of adding another layer of oversight to the real estate process, beyond your realtor, there are instances where that lawyer can certainly come in handy, perhaps saving you money and ensuring a smooth transaction, something everyone should strive their in their real estate dealings.

Of course, foreign real estate ownership is the key arena that real estate lawyers get involved with and the various types of laws and regulations that are, pun intended, foreign to you may have a profound impact on your transaction. In some countries, there are laws specifically enacted to target foreign property owners and those regulations can sometimes limit your ability and alter the state of your ownership.

Having a real estate lawyer look over the documents involved can save you this headache. Relying on outside expertise is critical to any real estate transaction and in foreign dealings, an additional layer is sometimes needed in the form of a real estate lawyer.

For your domestic dealings, foreign lawyers are typically not necessary. Realtors in the United States have such a complex and complete education procedure that few issues slip past them in the day-to-day operations of a real estate office. Of course, commercial dealings are somewhat different and even some investment properties could use an additional pair of eyes to read through any special clauses or conditions applicable to a property.

These come on a case-by-case basis and by consulting your realtor, you can get an idea of the kind of complexity involved in a particular real estate contract and just how valuable a real estate lawyer would be to the proceedings. In residential transactions, most contracts are fairly standard and do not need that extra layer of cost and protection. Of course, that determination is up to you and anytime a large sum of money is involved, it can sometimes be a good idea to seek an outside opinion on the viability of a legal agreement.

On the negative side, of course there is an added cost involved in getting a real estate lawyer to look over your transaction. That cost must be weighed about the money you already have involved in the transaction and the likelihood that there are legal issues an outsider party should look at. Those situations are not typical in residential listings, but can crop up in commercial or investment opportunities and certainly take place in foreign real estate deals.

If you have an extensive history working on deals similar to your current transaction, that might negate the need for a real estate lawyer, so never discount your own level of experience and expertise on a particular project. If you have done 10 similar deals and have used a real estate lawyer in the past, it is perhaps advisable to rely on your own knowledge base and forge forward. Of course, as with everything written here, that is a determination you will have to make for yourself.

In the end, a real estate lawyer mostly serves as a comfort to you, ensuring that there are no legal tangles that might come back to haunt you later. On something as important as a real estate transaction, a real estate lawyer can certainly come in handy, but is not applicable to all situations. Consult your realtor for advice on just what kind of worth a real estate lawyer would have to your transaction and proceed from there.

5 Tips Real Estate Investment

There are countless tips on real estate investing available and this is by no means intended as a comprehensive list. While every investment has its own intricacies and problems that need to be worked out, there are some very basic aspects that are common to most investment properties. Understanding those aspects and asking questions about them can help you determine whether a particular real estate investment opportunity is for you.

Anything Can Change
Building in the capacity for change in your investment is not only good real estate advice, but good life advice. Aspects of an investment can change at any given time and building in a little cushion in your profit projections for that change will most likely give you a better outlook on the possible outcome of your investment.

This is especially true for something like the tax climate of your investment as changes in tax laws happen regularly. If the tax situation surrounding your investment is the only thing you like about it, it is probably not a sound investment. Solid investments can withstand changes in the tax code, so never rely solely on the stability of tax codes, you will be sorely disappointed.

Do What You Know
It is tempting to get involved in real estate investment opportunities outside of your comfort zone. Maybe the terms look good or the area is nice, but your lack of expertise in the field will ultimately hurt you over the course of the investment. If you are well versed in multi-family homes, do your best to uncover the best investment opportunities in that field. If your bag is fixer-uppers, stick with that. Success is difficult to replicate so if you have a knack for something, exploit that knack.

Compare, Compare, Compare
As any real estate agent will tell you, valuations for a new home put on the market are a direct reflection of other sale prices of similar properties in that area. Your potential investment is the same way. If you are going to rely on rents to make back the money spent on the investment, compare the rents your prospective investment property takes in against similar properties in the area. Are they too high? If so, that may indicate future trouble filling the building at those prices, which then cuts into your profit forecast.

If you are getting involved in a fixer-upper, compare what you think the home will be like in the future to homes that have sold that look similar to that now. Doing so will help you estimate your eventual sale price and the amount of money you should invest to net a decent return.

Hammer Down True Expenses
Just as you want to examine what your incoming cash flow will be on any real estate investment opportunity, you want to investigate your outgoing cash flow as well. What are the key costs involved in running the property? What are the taxes on the property? How much does it cost you when part of your multi-family property is vacant? Sometimes properties can look great when you examine the rent payments coming in but then lose their luster when you look at the cost of running the facility. You need to investigate both sides of the story to get an accurate view of the financial future of your investment.

Know The Building
In real estate investing, surprises are usually costly. Not only should you do a full walk through of the prospective investment yourself, you should also look in to hiring an independent, professional inspector as well. Uncovering problems with the foundation, roof or furnace early can either save you from making a poor investment or give you ammunition to negotiate a lower price.

Not all real estate investments are the same and you will likely run in to a unique problem on every property you pursue. However, by sticking to the tips here, you can give yourself a great foundation from which to operate. Above all, pursue information on the property as vigorously as possible to eliminate the possibility of regretting your investment later.