Archive for the ‘Buying’ Category

There are a few things to remember when buying a home VS buying a condo because both have positives and negatives that you should think about. It will end up being a preference that you have to choose, because neither is better than the other as an overall assessment.

Buying a home is something you should do if you don’t mind doing all the handy work yourself. Things like mowing the lawn, shoveling the driveway and taking care of the outside structure are all part of home owning. If you add up the cost of a roof, painting, repairs, landscaping and snow removal and divide it out into a monthly payment for your home it would be very close to a condo fee that you would have if you bought a condo instead. So the costs are very similar for the two types of properties which means the condo fee shouldn’t be the deciding factor.

Buying a condo is nice because you don’t have to do all the added physical work like you would with buying a home. It can also be rewarding to have other people around if you are a people person who likes to mingle with everyone else in the other condos.

The main deciding factor is the fact that a condo is much cheaper to buy. You can use a mortgage calculator or any type of interest calculator to figure out your monthly payment and how affordable it is for you. If you can easily afford a home with the current interest rates and it’s your preference then i say go for it. However, if you feel like you should stick to the smaller mortgage then you might opt to buy a condo instead.

Current interest rates are very important because your monthly payment will change quite a bit depending on which bank you decide to use. Look around and see how much it would cost to lock in the interest rate so that you know what it will be. Then you can figure out exactly what you can afford with a mortgage calculator and make your final decision to buy or not.

Buying A Home VS buying a condo is a big decision to make and you will have to look at the pros and cons yourself. You can also weigh the costs against each other with my Free Mortgage Calculator on my website. I have it available so that you can look at the different loan options and also weight the Current Interest Rates against each other.

I have mortgage payment tips and information for you to look at that will save you money. All of my information is free and I also answer questions via email if you have any.

Author: Chris G Bell
Article Source: EzineArticles.com
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Q: Should I wait until home prices go even lower before I purchase?

A: No. Just as no one can accurately predict the peaks and valleys of the stock market, the same holds true for housing. If you wait for what you think is the absolute best deal, you could end up waiting for years. All the market fundamentals show that now is a good time to buy. Prices are down, interest rates near historically low levels, and there are many homes to choose from.

If you buy now, you will not only be in the drivers seat during the buying process, you will also reap the gains of price appreciation. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

Q: Should I wait out the market until can I get the same price on my home neighbors got when they sold two years ago?

A: No. It is always better to trade up in a buyers market. While the value of your house has fallen, the prices of higher end homes have also dropped. Here is an example:

Your neighbor sold for $300,000. Assume values in your area have dropped 10 percent, so you could get only $270,000 for your home today. You have your eye on a move up home that previously sold for $500,000, but now is selling for $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000.

But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are the move up home would also increase in price 10 percent to $500,000. That is a $200,000 price difference. So by selling today, you would actually save $20,000.

Q: Interest rates are going down. Should I wait until they go even lower before I buy a home?

A: Interest rates for 30 year, fixed-rate mortgages are currently below 6 percent and are extremely favorable for buyers. In fact, they are hovering near 30 year lows. But waiting to time the market is a dangerous game. Even those who follow the market for a living cannot figure out when interest rates will bottom out. If they could, they would all be millionaires.

And home prices do not necessarily move in unison with interest rates. So, if you decided to wait to purchase a home and the price dropped $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up by a half a point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making over the life of the loan.

Q: I have $10,000. Should I put that money in the stock market or buy a home?

A: Purchasing a home is by far the best long-term investment. For example, say you use that $10,000 to purchase a $250,000 home, and the house appreciates a modest 3 percent during the first year. That means after one year, the house would be worth $257,500 or a gain of $7,500. By contrast, putting the same $10,000 in the stock market and posting a similar 5 percent gain would only net a $500 return on investment.

And remember the tax incentives. In most instances, all mortgage interest and property taxes paid in a given year can be fully deducted from your gross income to reduce your taxable income. These deductions can result in thousands of dollars of tax savings, especially in the early years of the mortgage when interest makes up most of the payment.

Q: I am buying my first home but cannot afford the home that I want. Is it best to keep renting and hope that prices will get even lower

A: If you continue to wait, you may never be able to afford to get into the housing market. Even as home prices are currently moderating or falling, depending on where you live, rents continue to climb. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30 year, fixed rate mortgage.

Once you become a home owner, you are able to take advantage of the tax deductions that home ownership offers, and you begin to build equity in your property.

With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter home. After a few years, you can use those equity gains to sell your starter home and move into a bigger house. The sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family and enjoy pride of ownership.

E. Lee Reid is a hospitality, travel and leisure, Disney timeshare resales, vacation real estate, and construction industry expert. He and his companies have successfully built or managed thousands of homes and vacation resort condos at multiple resorts in North Carolina and Florida. In recent years he converted several hotels to condo hotels in the Disney World area of Central Florida. He is a widely quoted author and speaker. Reid has an MBA and will complete Cornell University’s Master of Essential Hospitality Management program in 2008. Reid is also a certified General Contractor, Realtor, and Certified Commercial Investment Member (CCIM) candidate. Visit at http://www.eleereid.com

Author: E. Lee Reid
Article Source: EzineArticles.com
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As I sit here writing this we are in the end (we hope) of a recession that has made thousands, or probably tens of thousands, of people lose their homes to foreclosure. This has been a terrible situation for many people but it has also created an opportunity for anyone who decides to buy a home of their own.

A lot of people these days are too afraid to buy a home. It is easy to be running scared with all the negative news we are hearing about the housing market not just in America but worldwide. Some people will say the extra financing costs and the potential problems with getting a mortgage make it better to rent.

While other people will say they think it’s a waste to use what usually amounts to their life savings as a down payment, or to cover the costs involved with buying a home. When they can just keep on renting for no extra investment over and above their monthly rent.

It is easier to not do something than to do something, the easiest path to follow is the one you are on.

So many people who would benefit by buying their own home are staying in rented accommodation just because they are to scared to make any changes in their life.

Changes do not always have to be disruptive, some changes can have a very positive effect on your life. Buying your own home will give you a sense of belonging in your community, this is just one of the benefits of buying your own home.

Was this article helpful? If so, please head over to our main Florida Home Loan Report site for more useful information. Want to learn more about home buying? If so, then please read why now may be the best time for you to buy your first Florida home.

Author: Johnny Miller
Article Source: EzineArticles.com
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How to buy a house is a topic that is asked of me often. As a professional real estate broker I work with clients who are very knowledgeable about buying a house and those who know nothing about the process. There are things you should certainly know in order to save yourself time and money. These two things alone can make buying a house very stressful. So, make sure you are armed with the right information so you will know how to buy a house.

One of the most important things that I advise clients on is to be honest with me. Why is this so important? Let me give you the answer in an example. I had a client who told me that they made $85,000 a year and that their credit was perfect. So, we set about looking at properties in the $450,000 – $500,000 range. After several weeks of looking, we finally put an offer to buy a beautiful home that they were ecstatic to own. When the loan officer took their information, ran their credit and pulled their W2s, not only was their credit rather poor, but they made only $70,000, not $85,000!

That immediately disqualified them from buying the house of their dreams! I advised them that this was not how to buy a house. The loan officer refused to work with them further and the market for the house price they could afford was clearly not in their range. Unfortunately, they shot themselves in the foot.

Another great tip is to fill out a loan application very early on in the game. This is especially true today, when there is a scramble to buy homes that are now “attractively priced” due to the numerous foreclosures and short sales. But completing this application way in advance, you will save your loan officer, your agent and yourself a lot of time … focusing on houses in the price range that you really can afford.

A home warranty is always one of the best investments. I recommend this anytime I advise clients on how to buy a house. In this way, you are insuring certain items in the house in case they break down. For example, your washer / dryer, refrigerator, and internal plumbing are things that can be covered by a home warranty. Many people do not know that you can also include above ground pool/spa, as well. This one warranty item saved my client over $1,000 one year. Also do not forget that the home warranty can also be renewed each year.

Comparing the price of a home with other similar homes in the area is key to ensuring you are getting your monies worth. Buying a house is one of the biggest investments in most people’s lifetimes. Make sure that you have built in the possibility of a long term financial security with the house.

Christine Tran is licensed real estate broker. You can find out more home buying secrets and real estate investment tips at Our Investment Group.

Author: Christine L. Tran
Article Source: EzineArticles.com
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Buying a great house at a discount price is possible to do in any real estate market if the home buyer is willing to do a little research and work. With a little time vested, it isn’t impossible to find house at a discount price compared to the actual price of property in the local real estate market of Allentown, PA.

Following tips will certainly help you find a home at a discounted price:

1. A trip to the Lehigh County courthouse will help you find the properties that are entering foreclosure sales proceedings. Names and addresses of people in foreclosure are available to public. You can contact these people and give them the option to sell their homes to you to avoid foreclosure.

2. While at the courthouse, you will also find list of properties being sold at the sheriff auction sale. These are properties that are being sold as the final stage of the foreclosure process. The opening bids for these houses are typically the first mortgage holder’s costs plus $1.00. The risk of buying bargain houses at sheriff sales can be high. The purchaser should do a title search to make sure that there are no liens that will remain in place after the sheriff sale such as federal liens. Another risk is the difficulty of being able to preview the property prior to the sale.

3. Banks have their own properties for sale that are available at a discounted price. Your dream of buying a home at discounted price can come true by purchasing such discount homes. These properties are referred to as REO properties. Information about such homes is easily available at respective banks or through a real estate agent that deals with REO properties.

Buying a REO foreclosed house is equivalent to buying a bargain property. These houses are typically inexpensive in comparison to homes for sale on the open market. The difference between the prices and discount is in range of 15% to 50% or greater.

It is important to consider following factors before buying a house that is available as an REO foreclosure sale:

• Foreclosed houses are not always in good condition and may require some repairs. The cost of the repairs has to be borne by the buyer, which adds to the cost of the discounted property.
• It is important to inspect the house before buying.
• The foreclosure sale cannot be reversed. Hence, it is necessary to do enough research before the deal is made.
• Properties purchased at a foreclosure sale sometimes may not be vacant. It can be a time consuming and difficult task to vacate the property requiring an eviction to be preformed.

4. Buying directly from homeowners in Allentown can be another method of buying discounted property. This way, you can save on the commissions to be paid to real estate agents. However, it should be noted that real estate agents are valuable resources in understanding the real estate transaction and agents make sure that all the appropriate paper work and laws are followed to protect both the home seller and the home buyer.

5. Many classified advertisements appear in the local newspapers of Allentown. Properties for sale that advertise using wording such as nice pool, new carpet, new windows, etc will not typically be offered at discounted prices. However, you should look advertisements containing words like make an offer, discounted offer, moving must sell, fast house sale. Such advertisements reveal that these properties can be bought at lower prices. Such properties are also called bargain houses, as owner is ready to negotiate the price.

There are many options or ways to own a home at a discounted price. However, as in any real estate transaction, it is necessary you do extensive research and proceed cautiously while buying your dream house.

Brett Lewis is the founder of http://www.BlackLabelRealty.com the online leader for real estate investments in the Lehigh Valley, the #1 provider of real estate solutions for home sellers & buyers in the Bethlehem, Allentown and Easton, PA. Brett has been involved in real estate investing since the 1980′s including property management, renovations, rehabs, wholesale deals, short sales, land development and commercial transactions.

Brett is a PA licensed Realtor helping investors find, purchase and sell investment property in the Lehigh Valley, PA. He also consults with real estate investors on various projects ranging from single family renovations to large multi-unit apartment management.

Author: Brett J Lewis
Article Source: EzineArticles.com
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1. Why do it?

Owning a home or to use one of the most common cliché “to have a roof over one’s head” goes back to the notion of fulfilling the most basic of one’s need and livelihood. To most families, working towards eventual home ownership provides a sense of purpose, belonging, physical security and well-being.

On the other hand, there are also individuals and families who may be long time renters, either by choice or otherwise. Given the complexity of today’s financial and equity markets, it is important to appreciate there are a multitude of investment options available to the investor and property investment is merely one of many.

There are also investors who may alternate between owning and renting over a period of time in an attempt to maximise their return on investment. The choice between paying mortgage and paying rent may be dictated by a number of factors such as property market trends, interest rates, personal circumstances and preferences, risk aversion and government policy.

By far the majority of people who get into the property market buy their first home which they intend to live in. Rather than living with family or paying rent, they see that paying down a mortgage to own a home will provide the long term financial and physical security.

Beyond this first home ownership, investors who buy a second property do it for a variety of reasons. Some investors take a long term view of property and see capital growth as a good return on their investment. Yet some others may be in steady and high paying jobs and use negative gearing as an avenue to minimise their tax liability. There are business people who buy commercial or retail property to assist in growing their businesses where expenses incurred from owing the property are tax deductible against their business income.

Therefore, the would-be property investor needs to be clear of his or her financial and investment goals and the reason for getting into the property market.

2. What to buy?

he type of real estate may consist of vacant land, residential property which may include houses, apartments, commercial property and industrial property.

The main factors which influence and determining the type of residential property to buy include the following:

a) Budget ~ houses are generally more expensive than apartments

b) Personal circumstances ~families will generally prefer living in a house than an apartment while singles and couples may find apartments a more conducive to their lifestyle needs

c) Personal preferences ~ your personality and lifestyle preferences will influence your choice of location, demographics, public amenities such as schools and transport

d) Yield ~ apartments will generally return higher yields than houses and vacant land, easier to maintain and offer higher security for occupants

e) Capital growth ~houses and landed property will generally command higher capital growth than apartments over the long term.

3. How to buy?

First and foremost, investing in real estate is a long-term venture. When contemplating to invest in property, you must be certain you are able to afford holding the property over the long term (a minimum of five years) due to the general nature of real estate being an appreciating asset. In general, capital growth in property only comes with time and you must have the cash flow to support and maintain the expenses of your investment property.

Buying your own home is usually the first big investment many people make in their lifetime. However, your first investment in property need not be your home. Many young people are now choosing to make small investments in property while staying with parents. It is the hope that these small investments will eventually fund the purchase of their dream home.

The most basic step in considering your first property is to ascertain your budget, that is, how much do I have to put down as a deposit (usually 10% of the purchase price of the property if you are successful in securing a home loan) and the associated costs such as stamp duty, legal fees and initial outgoings. I would allow for an additional 5 -10% of the purchase price, depending on the type of property for these additional acquisition costs.

Saving up spare cash and getting financial help from parents are among the most common ways towards a deposit although first home buyers are now using new ways to find that first deposit such as sharing with siblings and friends.

4. Where to buy?

The choice of location is by far one of the most important considerations in property investment. Properties which are close to public amenities such as transport, hospitals, shops, local attractions such as beaches, ocean fronts, parks, cafe and restaurants will usually attract both owner-occupiers and renters alike.

However, your needs and preferences as an owner-occupier may differ vastly from the needs of a tenant. One way to determine the location of your property is to ask yourself whether you are buying the property as your principal place of residence (PPOR) or as an investment. Putting yourself in the prospective tenant’s mindset will also provide good insight as to the type of property and its location.

5. When to buy?

When to buy is far less important than actually buying, a common situation where investors procrastinate for the market to fall in order to find a bargain. During a soft market, some investors are inclined to wait for prices to fall further and when prices start to rise, they think that they should have bought earlier, all the time missing opportunities to enter the market.

History shows that property prices have doubled on average every 7 to 10 years over the last 50 years. Taking this past trend into account and the impossible task of knowing when prices are at their lowest point, it is best to say that “Now is the right time to buy”.

Hi, my name is Albert Wong and I live in Sydney, Australia. I was unfortunate enough to be trained as a CPA and have working in finance and corporate planning for many years. I’m an avid collector of bonsai and wine and I like cooking and entertaining friends at home. I trying to follow my wife’s passion for writing although I’m pretty mediocre. I play the piano when I’m free and my favourite music is Chopin, Rachmaninoff and Gershwin.

My current website is http://wealthruproperty.com

Please feel free to drop by and say g’day! Cheers.

Author: Albert C Wong
Article Source: EzineArticles.com
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