Buying A Home ? What Is That Noise!?!
April 4, 2009
You’ve found the perfect home, closed escrow and just finished moving in. As you happily fall asleep, all seems well in the world. An hour later, you bolt up in bed to an ear splitting sound. All is no longer well in the world.
An Unholy Racket
If you saw the movie “My Cousin Vinny”, you know what I’m talking about. For those that haven’t, the movie centers on a lawyer, Vinny, who comes to the south to defend his nephew against criminal charges. Every evening, Vinny goes to sleep only to be awoken by some blasting noisy. When house hunting, you need to make sure you don’t get “Vinny’d.”
When you find an area or home you like, make absolutely sure you drive the area looking for any potential noise producers. Roll down the window, turn off the radio and just listen. You might be surprised at what you hear.
If you run across railroad tracks, you better figure out how close they are to your prospective home. Make sure you are near the house when a train goes by, so you can get the full effect. While trains and plains are obvious sources of noise, you also need to consider more subtle situations.
Home Buying ? School District Issues
April 4, 2009
A good school district is a key factor in home buying if you have kids. It can also be a positive selling point when it comes time to sell your home.
School Districts
When considering the quality of school districts, keep in mind that everyone is looking for "good ones." The question, of course, is what does "good" exactly mean? To a buyer with children, it means the best education on the planet. To your real estate agent, however, it may mean something much less.
You must look to facts, not opinions, when evaluating potential school districts as part of your home buying process. Asking for opinions is like a girlfriend asking a boyfriend if she looks good in a particular dress. Do you really think the answer is going to be anything other than positive?
The quality of a school district is found in the hard, cold facts. Issues you should consider include topics such as:
1. What is the student to teacher ratio?
2. What teaching style does the district use?
3. How much experience do the teachers have?
4. What is the turnover rate for teachers?
Renting Versus Buying A Home
April 3, 2009
Renters are often in a quandary as to whether it makes sense to continue renting or buy a home. Buying a home makes more sense, particularly when taking a long-term view. Yes, even in the current hot real estate market.
Renting ? Advantages
Renting can have a few advantages depending on the part of the country you live in. The primary advantage is your monthly rent payment may be less than an equivalent mortgage. A secondary advantage is the fact that maintenance and improvements to the property are the responsibility of the landlord. Still, these advantages pale in comparison to the disadvantages of renting.
Renting ? Disadvantages
The disadvantages of renting are significant. If you have any opportunity to purchase a home or condominium, it almost always makes sense to do so.
The biggest disadvantage of renting is the loss of value. Assume you rent a residence for $1,000 a month and you live in the residence for two years. You will have paid a total of $24,000 in rent, a pure expenditure. The $24,000 is simply gone and you will have nothing to show for it other than the time you spent in the home. Compare this to what your landlord has gained.
Real Estate Investing In Mexico
April 2, 2009
Mexico is CHEAP! But its getting more expensive. As property values rise, especially in resort areas, investors wonder how they can profit from this.
Compared to major US cities, Mexico is still very very cheap. But compared to 5, 10, or more years ago, values have really risen.
There are some particulars to pay attention to with Mexican property purchases. For instance, Mexico forbids foreigners from owning land in resort areas. This is worked around by shares in a development, partnerships, or strata arrangements.
Foreign ownership is limited only in the “restricted zone,” land located within 100 km of the Mexican borders, and within 50 km of the coastline.
Instead, a real estate trust must be set up to hold title for the foreigner. Since foreigners are not able to enter into contracts in buy real estate, they must have a bank act on their behalf, much as a trust is use to hold property for minors because they also can not contract. Potential buyers should always get advice and have all real estate transactions overview by a licensed Mexican attorney.
Real Estate Research By Talking
April 1, 2009
Real estate research might start with a look at the U.S. Census information about a town. It can include inspections of specific properties, too. There are many statical tools and information that can help, but don’t forget one of the easiest and most useful research tools: talking. Let me explain with a true story.
My wife and I were on vacation, and stopped in Farmington, New Mexico for a few days. We were about to buy a house for a winter project. The plan was to fix it up and sell it in the spring for a profit.
Just prior to making an offer, we took a last walk-through. As the owner showed me around, my wife started to talk to the woman who was renting the home. She told Ana that half of the outlets in the home didn’t work, as well as other useful information.
This got me thinking, and I went down to the basement for a second look at the wiring. Not only did the house likely need all new wiring, but I found a garden hose attached to a natural gas line. The owner shrugged and said, “You can just cut that off.”
Purchase Online Tenancy Agreements
March 31, 2009
Buy an on-line Tenancy Agreement now. As a landlord and also as a tenant it is important that there is a comprehensive tenancy agreement in place to protect both parties. Don’t be tempted with purchasing off the shelf do it yourself tenancy agreements. It is worth investing in a professionally prepared tenancy agreement by a qualified solicitor.
Tenancy agreements
Tenancy agreements are a legally binding document which protects both a landlord and the tenant when renting out property. If you are a landlord and need to download a solicitor prepared assured shorthold tenancy agreement now click here.
Amount of Rent
A landlord will determine the level of rent based on market conditions and level of rent expected on the type of property in question.
New landlord renting for the first time
If you are a new landlord renting your property for the first time it is essential that you purchase a comprehensive tenancy agreement. Never, believe that trust is enough. This is a business relationship to help protect your investment property.
Damage deposits
Real Estate Investing In Belize
March 30, 2009
Any trip to Belize starts fantasies of owning a beach villa, or a jungle resort. There are a lot of North Americans in this English speaking, former English colony.
Belize is known for its reef, the second largest in the world, and the fantastic diving that goes with it. Even beginner divers have heard of the Blue Hole, a famous diving spot. Ambergris Caye, “La Isla Bonita” in Madonna’s song, is the main toursit spot.
Along with tourist shops and T-shirt shops, there are real estate shops on the dusty roads of San Pedro on Ambergris Caye. Belize prices can range from as low as $5-10,000 for a beach lot in Corozal Town, a sleepy border town, to much higher prices for properties on Ambergris Caye. The southern resorts like Placencia are somewhere in between, price-wise.
There is lots of online assistance available. Gringos resell their properties, and locals sell to gringos, often through real estate agencies.
As more and more North Americans travel, and with the ease of getting to Belize, and its English speaking, safer roots - there will be more people looking to retire and visit Belize. This should be a continuously appreciating investment with good rental prospects, if you do your home work!
Real Estate Investing In Bulgaria
March 30, 2009
As Bulgaria readies for joining the European Economic Community in 2007, many investors are looking to see if there are real estate bargains to be had there.
Other countries have had a big run up before and shortly after joining the European Economic Community. Bulgaria’s prices for commodities are amongst the cheapest in Europe, and if you can find similarly priced property values, you could do very well.
Most people will want to look at Black Sea properties, or in ski resorts like Bansko, but the real deals are to be found in the interior of the country, in rural areas. In a recent visit properties on the Black Sea were fully priced, but inland properties could be had for 5-15,000 Euros - cheap!
There are many online companies offering pre-construction, or off-plan opportunities as well as completed units. Property management is easily available as well.
Discover one of Germany and England’s favorite holiday desitinations.
Make sure to do your homework though. All sellers will make the property they are selling seem easy to buy, easy to rent, and headed for the moon! Different areas have different appreciation prospects, and rental prospects as well.
From Foreclosure to Forbearance - The Art of Negotiation
March 29, 2009
As an active real estate investor you probably already know that the most important phase of your investment is when you buy the property. Most of us are getting the bargains in the foreclosure market. You will agree with me that the best time to buy is before the actual foreclosure. This is commonly known as pre-foreclosure.
If you ever found yourself in the heat of a foreclosure auction you would agree that this is not the situation you want to be in. To get into the pre-foreclosure market you need to have quick access to all kind of information. You can imagine that there’s a huge competition in the pre-foreclosure market. Everybody wants a piece of the pie and the bigger the pie gets the more people want a piece.
We are looking at a tidal wave of new foreclosures within the next 1-3 years. I’m talking about all the interest only mortgages and special mortgages that enabled homebuyers to get more house than they actually can afford. These loans are converting into higher interest loans or fixed rate loans. Either way these folks will be looking at about a 40% higher mortgage payment each month. For most families this will be disastrous.
Invest In Real Estate - But Where?
March 28, 2009
Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio. Use the questions below to find them.
Demand Questions
1. Is the population growing fast? Check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.
2. Is job growth decent? Again, ask local authorities or use the census information. You want to see job growth equal to or exceeding population growth. The people have to have money to pay for housing.
3. Decent quality of life? This is subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It’s also a good indication of a high quality-of-life if people are willing to take lower-paying jobs just to live there.
4. Wealth in the area? It is always a good sign when there is some degree of wealth in a town. Count rich homes. Wealth means everything doesn’t die when the economy slows.
