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The following are not your usual home buying tips. For example, almost everyone will tell you that you should buy a home, but the first tip below suggests an alternative.

Consider Renting

This is all about time and place and your own situation. Are you going to be in one place for long? If you are likely to move within a few years, you may be better off renting. Transaction costs of buying and selling will likely eat up any equity gains you get. It may seem profitable to buy at $200,000 and sell at $220,000 two years later, but commissions, closing costs and loan costs can easily add up to $20,000, so where is the gain? Also, there is no guarantee that prices will rise, and if they don’t you suffer a real loss.

Also, it is a matter of the ratio between rental rates and the costs of buying, and what is likely to happen in the market. For example, suppose you are in a slow-growing stable area, and your total monthly cost to buy a home is going to be around $1,200. If rent is anywhere near that for the same size home, you should probably be buying a house.

On the other hand, let’s look at the example of Tucson, Arizona in late 2005. You could buy a small home for about $190,000, with mortgage, taxes and insurance running about $1,325 per month. But you could rent the same home for just $675 per month. Now add to this the fact that home prices had been rising at 20% or more per year for years, and 12% of all recent sales were to speculators, not owner-occupants (a sure sign of a market top).

In this case, it would have made more sense to rent. Had you bought there two years ago, you would have paid $650 per month extra to be a home owner, or $15,600 over these last two years. In addition, the house would probably be worth a little less now than when you bought it. Better to have banked that $15,600 and bought the home today.

Other Home Buying Tips

Compare ALL costs when you look at various homes. It is easy to consider just the price of a home, or what that means in terms of a mortgage payment. However, there are other costs. If the home is in a flood zone, for example, insurance could be $200 per month higher than for other homes. Look at taxes, insurance, utility costs (big homes cost more to heat) and any other regular costs, so you can honestly compare houses according to what they will cost you monthly.

Go to online forums to learn about a new town. Many people like to talk about where they live. They get to do this in various online forums, which you can search for by entering the name of the town and “forum” into any search engine. Be aware that these are often places where locals complain about their town, but you can also find interesting and useful information, and ask questions.

If your real estate agent doesn’t represent you, don’t be loyal. If she is really a seller’s agent, she is obligated to pass on comment you make to the seller, like “I think we can go higher if they reject our first offer.” Even if she represents you, be sure she does it well. If you are shown three houses that have nothing to do with the criteria you laid out, show the agent the door. By all means stick with a good agent who really helps you, but otherwise you can also call the listing agent for each house you want to see.

Inspect the home yourself. You probably plan to have a home inspection done by a professional before you buy. But you should also visit the home a second time yourself, and do your own inspection. Bring a checklist and look over everything, even if this takes an hour or more. In this way you can tell the professional inspector what your concerns are, and be ready with questions for him.

There is another reason to do this inspection. It has to do with a concept called “time investment.” Sellers are more likely to accept an offer if they have invested more time and hope into a buyer. Negotiation secrets like this are a whole other area of home buying tips – one that you may want to learn about.

Copyright Steve Gillman. See a photo of the house we bought for $17,500, get a free ebook on how to buy cheap homes, a free real estate investing course, and a Home Inspection Checklist at: http://www.HousesUnderFiftyThousand.com/home-inspection-checklist.html

Author: Steven Gillman
Article Source: EzineArticles.com
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Everyone is looking for the best way to retire early. We work ourselves to death and still over 90% of the population can’t afford to retire at the age of 60. Why is this? There are many theories as to how to change this, but the decision must be made on an individual basis. You have to decide when you want to retire and plan accordingly. Idle wishing will not accomplish this. Your ship probably will never come in, unless you direct it into the harbor. With so many investments and opportunities to put your money into, what is the best way to retire early? As it has been for hundreds of years, investment property is the best choice.

Unlike other forms of securities, investment property forces you to save. Will you save that much if it’s a conscious decision every single month? Probably not. You have to pay the home mortgage every single month with investment property. If not, you lose the property. This can be looked upon as negatively by some but it is a great advantage to you in the long run.

This advantage is what is referred to as leverage. It is the way that nearly all wealthy people were created. Investment property allows you to leverage other people’s money. What does this mean exactly? A standard down payment required on a home mortgage is 20%. Let’s say you wanted to buy an investment property for $100,000. You only have to put up $20,000 of your own money. However, you get all of the appreciation of the investment property. This means you’re actually making money on $100,000 instead of the $20,000 that you put up. This is a huge difference. It’s not hard to see why this is a great way to make money.

Investment property also requires less risk than other types of investment. If the stock market plummets tomorrow, you’ve got nothing. If your investment property burns to the ground tomorrow, you have insurance. This is a great advantage in itself. Even if property values plummet in your area, the investment property will still be worth something. Land is the only product that you can’t produce more of.

Another major advantage of investment property is the positive cash flow that is created through rent. In many cases, you can pay the entire home mortgage with the rental income that you make from the property. The people that rent it are making your mortgage payment for you and you reap the benefit. When you sell the property, you get the profit, not the renter.

The advantages of investing in real estate are numerous. There is less risk and more reward than almost all other forms of investment. We all want to find a way out of the daily grind of a job. This could be the best way out. If you want to improve your standard of living and retire, look no further than real estate investment.

This article is free for republishing as long as it will include this resource box. Author of this article, Marian Rozwenc, PhD, is a specialist on the field of investment property and auto insurance. For more info go to: [http://investmentpropertylocator.com] or [http://sanantonioautoinsuranceguide.com]

Author: Marian Rozwenc
Article Source: EzineArticles.com
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Buying a home is a part of most people’s lives. It fits right into our finances with saving for retirement and health insurance. It is simply a part of our finances.

You can turn to a lot of places for advice when buying a home. You can talk to a realtor, a mortgage lender or even your family. But there are some tried and true personal finance laws that fit the home-buying situation perfectly.

Rule 1: Do your homework

It used to be that you were told to learn as you go. After all, the saying says that you only learn by making mistakes. Not true. Don’t feel as if you need to just go out and jump into a home because that is what you are expected to do. Take some time and do your homework.

If you don’t have the money and the time to devote to a home, then buying is not for you. Look at your finances, job situation, family life and goals when deciding what and when you want to buy. Don’t forget that owning a home is a big deal. You will not only have monthly payments, but you will also have insurance premiums, property taxes, utilities and possibly even PMI to tack onto the cost. Renting could be a better choice for right now.

Rule 2: Buy what you need

If you buy something just to tide you over, you might find that it doesn’t last long. Advisors will tell you to buy quality and for the long term when it comes to big ticket items. The same goes for a house. Yes, buy a small starter home if that is what you want and what your finances dictate. But unless it is a roomy home at a good price, you may have to move fairly soon. And all of the commissions and closing costs could be avoided by simply buying what you need now.

Rule 3: Fixed-rate is the only way to go

I know that you may be thinking that adjustable rate mortgages have the potential to go down in interest rate. Well, they can. But what will you do if it goes up? A fixed-rate mortgage gives you the security in knowing that what your payment is today, it will be tomorrow and twenty years from now. It’s not going to go up and throw your budget in the pit. If you have extra cash, go ahead and add it to your payment and get rid of that mortgage early.

What is the perfect term? It depends on your finances. But remember, you will own your home quicker, have more equity faster and pay less interest over time if you pay off your mortgage in 15 years versus 30 years.

Rule 4: Have a backup plan

If you haven’t noticed it now, you will. Things go wrong. Often. They just do. And you will be glad you have a backup plan when you are down to your last penny. I see nothing wrong with taking out a equity line of credit and not using it. Just tuck it away for an emergency. Don’t touch it until absolutely necessary. Or better yet — forgo the temptation and make sure that you save some emergency money. You will need about three months worth of expenses for safety’s sake. But if you aren’t a good saver, your home equity will be a good backup plan.

Rule 5: Take your time

Like rule number one, you should simply take your time and have everything lined up before you jump on in. Take the time to search for a home. Look at the neighborhoods, the market and the homes that interest you. The more you know, the better you will be at negotiating. There is no big hurry. There are plenty of homes out there. Dream homes are a dime a dozen, believe me. If they weren’t, so many people wouldn’t own homes.

It all boils down to being wise in your decisions. Look at your finances, goals and needs before you consider anything else. These factors are the necessities. The rest is just nice. By using your financial sense, you will find that homeownership is a natural part of life.

Martin Lukac represents RateTake Refinance Loan marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Consolidation help and you’d be surprised what we can do together.

Author: Martin Lukac
Article Source: EzineArticles.com
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Are you a landlord or a house owner who has let out a house on rent? If yes, then you might be running the risk of default on payment of rent. You can not predict when the tenant may miss out on paying the rent. As a landlord, you may be prone to suffer heavy losses when tenants default on making payments. If you were to find yourself in a similar situation, how would you cope up with the situation? The only way to deal with such a situation would be to get rent guarantee insurance.

With this kind of insurance cover, for a relatively small annual fee, landlords can protect against loss of rent. Landlord rent protection insurance is combined with Legal Assistance Insurance wherein the landlord’s legal costs of recovering rent and/or evicting a non-paying tenant are covered.

With help from rent guarantee insurance, a landlord can get the rent on time. He can be rest assured of getting the rent easily with its help. Herein, tenants are professionally credit checked before handing over the keys. This kind of insurance is very useful as it helps them keep their property protected without a letting agent, as the necessary checks involved actually tend to deter rogue tenants.

With rent protection insurance a landlord can protect his interests. Tenants who are likely to default on paying rent can keep themselves protected. Rent guarantee insurance is a type of insurance that keeps a landlord protected against any kind of proceedings to evict the tenant from the rented property where applicable. If you are protected against voids and non-payment of rent, including legal expenses and the cost of evicting tenants, you can make it happen through this kind of insurance. Rent guarantee protection service can help you keep protected.

By availing this kind of insurance, you can look forward to:

o Instant protection if your tenant fails to pay the rent
o Cover up to £2,500 a month in rent
o 6 or 12 month cover option
o Payment within 14 days of default, minus excess
o Expenses for legal action and tenant eviction
o Get Rent Guarantee insurance cover from less than £10 a month and protect against non-payment of rent in a short period

Rent Guarantee and Legal Protection can help you keep protected against all kinds of risks that you may be prone to against tenants. Now, without worrying about the tenants, you can lend your house or property safely.

Sadhna D, Expert Author

Building and Content Insurance:

Building and Content Insurance

Buy to Let Landlord Insurance:

Buy to Let Landlord Insurance

Author: Sadhna D
Article Source: EzineArticles.com
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Are you a landlord or a house owner who has let out a house on rent? If yes, then you might be running the risk of default on payment of rent. You can not predict when the tenant may miss out on paying the rent. As a landlord, you may be prone to suffer heavy losses when tenants default on making payments. If you were to find yourself in a similar situation, how would you cope up with the situation? The only way to deal with such a situation would be to get rent guarantee insurance.

With this kind of insurance cover, for a relatively small annual fee, landlords can protect against loss of rent. Landlord rent protection insurance is combined with Legal Assistance Insurance wherein the landlord’s legal costs of recovering rent and/or evicting a non-paying tenant are covered.

With help from rent guarantee insurance, a landlord can get the rent on time. He can be rest assured of getting the rent easily with its help. Herein, tenants are professionally credit checked before handing over the keys. This kind of insurance is very useful as it helps them keep their property protected without a letting agent, as the necessary checks involved actually tend to deter rogue tenants.

With rent protection insurance a landlord can protect his interests. Tenants who are likely to default on paying rent can keep themselves protected. Rent guarantee insurance is a type of insurance that keeps a landlord protected against any kind of proceedings to evict the tenant from the rented property where applicable. If you are protected against voids and non-payment of rent, including legal expenses and the cost of evicting tenants, you can make it happen through this kind of insurance. Rent guarantee protection service can help you keep protected.

By availing this kind of insurance, you can look forward to:

o Instant protection if your tenant fails to pay the rent
o Cover up to £2,500 a month in rent
o 6 or 12 month cover option
o Payment within 14 days of default, minus excess
o Expenses for legal action and tenant eviction
o Get Rent Guarantee insurance cover from less than £10 a month and protect against non-payment of rent in a short period

Rent Guarantee and Legal Protection can help you keep protected against all kinds of risks that you may be prone to against tenants. Now, without worrying about the tenants, you can lend your house or property safely.

Sadhna D, Expert Author

Building and Content Insurance:

Building and Content Insurance

Buy to Let Landlord Insurance:

Buy to Let Landlord Insurance

Author: Sadhna D
Article Source: EzineArticles.com
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Are you a landlord or a house owner who has let out a house on rent? If yes, then you might be running the risk of default on payment of rent. You can not predict when the tenant may miss out on paying the rent. As a landlord, you may be prone to suffer heavy losses when tenants default on making payments. If you were to find yourself in a similar situation, how would you cope up with the situation? The only way to deal with such a situation would be to get rent guarantee insurance.

With this kind of insurance cover, for a relatively small annual fee, landlords can protect against loss of rent. Landlord rent protection insurance is combined with Legal Assistance Insurance wherein the landlord’s legal costs of recovering rent and/or evicting a non-paying tenant are covered.

With help from rent guarantee insurance, a landlord can get the rent on time. He can be rest assured of getting the rent easily with its help. Herein, tenants are professionally credit checked before handing over the keys. This kind of insurance is very useful as it helps them keep their property protected without a letting agent, as the necessary checks involved actually tend to deter rogue tenants.

With rent protection insurance a landlord can protect his interests. Tenants who are likely to default on paying rent can keep themselves protected. Rent guarantee insurance is a type of insurance that keeps a landlord protected against any kind of proceedings to evict the tenant from the rented property where applicable. If you are protected against voids and non-payment of rent, including legal expenses and the cost of evicting tenants, you can make it happen through this kind of insurance. Rent guarantee protection service can help you keep protected.

By availing this kind of insurance, you can look forward to:

o Instant protection if your tenant fails to pay the rent
o Cover up to £2,500 a month in rent
o 6 or 12 month cover option
o Payment within 14 days of default, minus excess
o Expenses for legal action and tenant eviction
o Get Rent Guarantee insurance cover from less than £10 a month and protect against non-payment of rent in a short period

Rent Guarantee and Legal Protection can help you keep protected against all kinds of risks that you may be prone to against tenants. Now, without worrying about the tenants, you can lend your house or property safely.

Sadhna D, Expert Author

Building and Content Insurance:

Building and Content Insurance

Buy to Let Landlord Insurance:

Buy to Let Landlord Insurance

Author: Sadhna D
Article Source: EzineArticles.com
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