The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date.
Overall Dollar Budget
To establish a budget for purchasing a home, you should speak with a mortgage professional prior to looking for property. In terms of your budget, keep in mind that parking is usually not included in the purchase price that is quoted by the developer. In addition, in today's market the list price of the unit is typically not negotiable.
The best way to establish a budget is to determine how much money you will need as a down payment and how much money you will need as a down payment and how much you feel comfortable spending, based on your gross income, for monthly payments. Remember that the real estate taxes are generally included in your monthly mortgage payment and should be calculated at a minimum of 2% of the purchase price.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Saturday, December 9, 2006
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system.
Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.
Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.
Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Apartments make for good property investments
Apartments in South Africa make an ideal property investment for South Africans living abroad, says Scott Picken, MD of International Property Solutions.
"Apartments are ideal in many ways for South Africans living overseas to get on the property ladder back home. For one, they are generally a lot cheaper than houses or townhouses, because the land cost is divided up by more properties. So from a price perspective, they are a lot more affordable, which is a major plus if you're living abroad and still travelling a lot, because you don't want a large mortgage that is going to chain you to your job until your visa runs out."
"They are also ideal because there is a lot less admin involved in owning and maintaining an apartment, compared to a house. A lot of tenants couldn't be bothered with maintaining a garden, for example. They live in your house for a year or two, and when they move out the garden is in a complete state - which makes getting the next tenant that much more difficult. The hassle of co-ordinating a garden service is not an issue with apartments, sometimes even if you're on the ground floor and have your own private garden, as the body corporate will take care of it for you. External areas like the walls and roofs, as well as communal areas like the swimming pool and clubhouse, are also maintained by the body corporate, which reduces the hassle, especially for buyers that live overseas."
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
"Apartments are ideal in many ways for South Africans living overseas to get on the property ladder back home. For one, they are generally a lot cheaper than houses or townhouses, because the land cost is divided up by more properties. So from a price perspective, they are a lot more affordable, which is a major plus if you're living abroad and still travelling a lot, because you don't want a large mortgage that is going to chain you to your job until your visa runs out."
"They are also ideal because there is a lot less admin involved in owning and maintaining an apartment, compared to a house. A lot of tenants couldn't be bothered with maintaining a garden, for example. They live in your house for a year or two, and when they move out the garden is in a complete state - which makes getting the next tenant that much more difficult. The hassle of co-ordinating a garden service is not an issue with apartments, sometimes even if you're on the ground floor and have your own private garden, as the body corporate will take care of it for you. External areas like the walls and roofs, as well as communal areas like the swimming pool and clubhouse, are also maintained by the body corporate, which reduces the hassle, especially for buyers that live overseas."
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Saturday, December 2, 2006
5 Factors of Selling a Home
There are five major factors to consider when selling a home. These factors will greatly influence not only the final price you will get for the property, but also how quickly it will sell and how much grief you will suffer through the sale.
Location
Over history it's been said the three things to look for in buying a property are (1) Location, (2) Location, and (3) Location. There are positive and negative factors to almost every location. Let's pretend your property is right next door to a fire station. You need the kind of marketing professional that can sell the benefits of not having to worry about your new home burning down, or perhaps the savings on fire insurance. Seriously, no matter where your property may be located, there is a ready, willing, and able buyer in the marketplace. The "problems" with the location of a property can be overcome, you just need a Realtor who will work hard to do so.
Your Realtor and his/her Company
Not all Realtors are the same. We each take different approaches to the marketing of your home. These range from as basic as placing the home on the MLS system and hoping it will sell, to Realtors who actively market the home through newspaper advertising and the Internet.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Location
Over history it's been said the three things to look for in buying a property are (1) Location, (2) Location, and (3) Location. There are positive and negative factors to almost every location. Let's pretend your property is right next door to a fire station. You need the kind of marketing professional that can sell the benefits of not having to worry about your new home burning down, or perhaps the savings on fire insurance. Seriously, no matter where your property may be located, there is a ready, willing, and able buyer in the marketplace. The "problems" with the location of a property can be overcome, you just need a Realtor who will work hard to do so.
Your Realtor and his/her Company
Not all Realtors are the same. We each take different approaches to the marketing of your home. These range from as basic as placing the home on the MLS system and hoping it will sell, to Realtors who actively market the home through newspaper advertising and the Internet.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Florida Investment Real Estate and What Are Considerations Before Buying
Investment Real Estate, First Things First
Considering investing in property? What are some pertinent things to consider before taking this leap? Of all the investment possibilities, investment in land generally produces the most positive results. It is vital, however, to carefully investigate the pros and cons, benefits and deficits of real estate investment. Most people look at investment real estate as risky and feel woefully inadequate to tackle this form of investing. They feel lost, not knowing where to even begin!
A multitude of information is available and knowing how to search can seem daunting. A web site search will produce boatloads of information, some valuable and some not. Some key words to search are real estate investment, investment property, and investing in real estate. This will begin the process for you. Not all available information is worth your time, however. Beware when the site promises high return for little down. Also beware of sites whose main goal is to solicit your money. Web searching is one form of research. Another is talking to a reputable real estate broker or real estate lawyer. One of the best sources of information is a friend you trust who has done real estate investing. A trustworthy friend who started as a novice and progressed to real investing is probably your best source of reliable information. Their voice of experience rings the loudest since they are a layman like you who had to discover for themselves each step of the way how to make successful investments.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Considering investing in property? What are some pertinent things to consider before taking this leap? Of all the investment possibilities, investment in land generally produces the most positive results. It is vital, however, to carefully investigate the pros and cons, benefits and deficits of real estate investment. Most people look at investment real estate as risky and feel woefully inadequate to tackle this form of investing. They feel lost, not knowing where to even begin!
A multitude of information is available and knowing how to search can seem daunting. A web site search will produce boatloads of information, some valuable and some not. Some key words to search are real estate investment, investment property, and investing in real estate. This will begin the process for you. Not all available information is worth your time, however. Beware when the site promises high return for little down. Also beware of sites whose main goal is to solicit your money. Web searching is one form of research. Another is talking to a reputable real estate broker or real estate lawyer. One of the best sources of information is a friend you trust who has done real estate investing. A trustworthy friend who started as a novice and progressed to real investing is probably your best source of reliable information. Their voice of experience rings the loudest since they are a layman like you who had to discover for themselves each step of the way how to make successful investments.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Friday, December 1, 2006
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
Almost anyone can become a rural property owner; if you are willing to set goals, establish what your purposes are, plan ahead and set targets that are all aligned toward the same result. And, if you can be patient instead of requiring instant gratification.
There is no more $50-an-acre land; unless you count some of the inaccessible and unusable properties that are sometimes available in blocks of 10,000 acres or more; and even these properties are rare. But you can get rural properties more reasonably now than in the past IF you are willing to be creative in your expectations and in the ways you use and modify the property.
If you are in a big hurry to find rural property, you will likely not be able to find what you are looking for. Rural properties have fewer buyers who want to purchase them, but there are plenty of dreamers who have not considered the realities. There are seldom bargains available because most folks who own rural properties know exactly who to call first when they want to sell. If the property really is a bargain it is gone with one of the first ten phone calls the seller makes. However, if you are willing to "think outside the box" of convention you may end up with what is a bargain property for you.
Twenty and thirty years ago thousands of folks bought into the "live on a farm and make a fortune" dream of owning a chicken house, home and acreage in Sussex County Delaware -- the chicken capital of the world -- where there are several million chickens for every person who lives here. For a short while it was possible to take the "contract" from a chicken plant to the bank and with only that as collateral, get a loan for about 10 acres, a home and at least one chicken house. Many folks soon discovered that the so called contract had fine print and clauses that were all in favor of the chicken plant and none in favor of the chicken grower. Soon most chicken growers were working full time to help support the chicken business they had bought, along with it's mortgage of $200,000 or more, sometimes much more.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
There is no more $50-an-acre land; unless you count some of the inaccessible and unusable properties that are sometimes available in blocks of 10,000 acres or more; and even these properties are rare. But you can get rural properties more reasonably now than in the past IF you are willing to be creative in your expectations and in the ways you use and modify the property.
If you are in a big hurry to find rural property, you will likely not be able to find what you are looking for. Rural properties have fewer buyers who want to purchase them, but there are plenty of dreamers who have not considered the realities. There are seldom bargains available because most folks who own rural properties know exactly who to call first when they want to sell. If the property really is a bargain it is gone with one of the first ten phone calls the seller makes. However, if you are willing to "think outside the box" of convention you may end up with what is a bargain property for you.
Twenty and thirty years ago thousands of folks bought into the "live on a farm and make a fortune" dream of owning a chicken house, home and acreage in Sussex County Delaware -- the chicken capital of the world -- where there are several million chickens for every person who lives here. For a short while it was possible to take the "contract" from a chicken plant to the bank and with only that as collateral, get a loan for about 10 acres, a home and at least one chicken house. Many folks soon discovered that the so called contract had fine print and clauses that were all in favor of the chicken plant and none in favor of the chicken grower. Soon most chicken growers were working full time to help support the chicken business they had bought, along with it's mortgage of $200,000 or more, sometimes much more.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
10 Home Purchase Abroad Tips For Success
Are you seeking your little corner of sun drenched heaven on earth? If you are you're certainly not alone!
Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.
1) Legal Advice
Legal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in.
This is especially true if you're buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents…and however pleasant and helpful the real estate agent or vendor are it's in your own best interests to make sure you have a local lawyer who's in your pay representing you at such times.
2) Build Times
If you buy off plan or you're self-building or renovating abroad you need to factor contingency into your overall time planning. Weather, seasonal pressures, holidays, availability of essential building materials - the list of factors that can adversely affect the build time of a house is almost endless! Your builder may confidently assure you that your property will be completed by a given date, and yet, depending on where in the world you're buying your property, the completion date is likely to always be delayed! It's just 'one of those things'.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.
1) Legal Advice
Legal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in.
This is especially true if you're buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents…and however pleasant and helpful the real estate agent or vendor are it's in your own best interests to make sure you have a local lawyer who's in your pay representing you at such times.
2) Build Times
If you buy off plan or you're self-building or renovating abroad you need to factor contingency into your overall time planning. Weather, seasonal pressures, holidays, availability of essential building materials - the list of factors that can adversely affect the build time of a house is almost endless! Your builder may confidently assure you that your property will be completed by a given date, and yet, depending on where in the world you're buying your property, the completion date is likely to always be delayed! It's just 'one of those things'.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
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