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Investment Property

Investment PropertyIf you decide to buy an investment property the first question you should ask yourself is how much can you afford to contribute towards the purchase each week. The answer affects what type of property you should look for and the location.

There are two types of property investment:

(a) cash flow positive property which often has little potential for capital growth; and

(b) cash flow negative property which often has potential for capital growth and often provides negative gearing opportunities which minimizes the amount of personal tax you pay.

Negative Gearing

Negative gearing is the situation where the total costs of owning the property (eg. interest payments, council rates, water rates, strata levies, insurance premiums, depreciation and the like) are higher than the income (rent) you receive in relation to the property each year. Assuming the title of the property is in your name any loss can be deducted from your personal income which can reduce the tax that you have to pay.

With this type of purchase the buyer banks on the capital value of the property appreciating over time

Take These Advantage Using Home Inspection

home inspectionIf you are considering investing in a home and realizing your home buying dream, then first it is advisable to get a home inspection done. A home inspection report is of great value to home buyers.

If you are new to this, don’t you worry! In today’s post we’ll be providing you quality information on how to use home inspection to your advantage.

Home Inspection Checklist for Home buyers
First off, if you discover something about a home during the inspection that makes you uncomfortable about purchasing this home, make sure this matter is resolved in some fashion before signing your life away. However, once all that paperwork at closing has been finalized, now is the time to take care of all the small problems listed in the home inspection report.

The best time to handle these projects is before you move in and while you are moving and setting up your new home. Once you are settled and old routines are in place, you are less likely to pursue projects that are potentially disruptive to your daily flow, and some issues on that report require

Effective Ways Tips for Home Buyers

Home BuyersKnow these tips before buying a home :

  1. Run the numbers! Conduct a financial plan to determine whether you can really afford to take the plunge. Assuming that you have squirreled away your 20 percent down payment (I’m not a huge fan of putting down less than that amount, even though FHA will allow it), there are still plenty of markets around the country where renting makes more sense than buying. Renting might still be the better deal!
  2. Get pre-approved for a mortgage: Pre-approval is a good gut check on your price range. Gone are the days that banks will fork over cash to anyone with a heart beat. The best way to start is to ask friends for referrals from mortgage brokers and to shop around with banks and credit unions. Make sure to compare apples to apples and to ask the broker the total costs to you at closing. You should also know that once you actually find a home, the mortgage process is on the same pain level as a root canal, only it requires more patience and there’s no Novocaine. That said, You’ll be required

Hiring Property Management Companies, Here Its Advantages

There are always headaches that go along with investment property. There is no such thing as the perfect property to invest in, with the perfect tenant renting from you. Your investment property can be a lot less stressful, however, with a little help. We’re going to take a look at some of the advantages of hiring property management companies, and what to look for when interviewing them. A competent property manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep :

Marketing

A good property management company knows how to market your investment property. This includes keeping your unit(s) full almost all of the time. A good manager will know the different avenues to advertise your vacant property, and know ahead of time when to start advertising because a lease is almost expired. Marketing your property also includes doing local market studies on what the maximum you should be charging for rent while making your property competitive with other units.

Another useful

Great Time Buying A Home

Now that you are prepared financially, you might consider what the best time is to buy a home. Ideally, the best time is when interest rates are low, when it’s a buyer’s market, and when the move fits your current situation, such as before the start of school, so your children are settled before starting a new school.

Unlike other goods and services that enable you to pinpoint a key buying time – buying cars at the end of the tax year, for instance, or buying linens in January – there really isn’t a perfect time of year, although there are factors that do affect the timing.  Include a little bit of excitement in the seriousness and you will be making a strong financial move. It is time to trade your rent payment for a mortgage payment? Does a mortgage payment sound too serious for you? It shouldn’t, chances are the mortgage payment on a new home will be very close to the amount you are shelling out each month in rent for an apartment or house.

Getting the Best Interest Rate

Interest rates, for instance, will affect your monthly payment as you saw in the section

Parameter of Buying Home

The price range maybe the major factor in buying a property but other parameters for home-buying also play a key role. Whether you are purchasing your home as an investment, a lifestyle upgrade or both, one of the most important decisions you will make is where you want to live. Your home’s location will help determine not only the future value of your investment, but also many aspects of your everyday life. Here are some factors you should consider carefully when selecting a location.

Location and Neighborhood

The first criterion for anybody purchasing a new house is location. Be it the suburbs, the country side or the city, one should only decide after evaluation all the pros and cons. For example, the suburbs and the country side are less expensive. The property may have huge acres of beautiful land ideal for farm-houses. Since it is located by a small town, the livelihood is also simple. The negative is the long drives especially if the workplace is far off.

The city properties may be chic and stylish with the entertainment and workplace nearby; the urban lifestyle can prove to be hectic. Traffic jams and higher crime rates deter many.

City vs. Suburb vs.

About Condominiums

A condominium development can take the form of apartment-style complexes, townhouses or converted multi-family dwellings. What distinguishes it from other multi-tenant buildings is that the developer has legally declared it a condominium, and individuals can purchase units in the building or complex. In most states, this means that the development falls under specially designated laws and regulations applied to condominiums.

When purchasing a condo, the owner buys the title to his or her individual unit, up to the walls, but not including them. A common description of a condominium is a “box in the air.”

Common areas of the development, such as stairwells, dividing and outer walls, fitness centers and rooftop gardens, are under shared ownership. Each unit owner holds an interest in these spaces. In order to manage the maintenance and repair of the shared common areas, every condo development has a condominium association, also known as a unit-owners’ association. The association is elected by condo owners and makes communal decisions in the interest of the community.

Condo costs include :

  • Down payment, mortgage and property tax
  • Special assessment fees. These fees may be requested when an unexpected repair or

Reasons You Should Buy a Home

There are many reasons why you should consider jumping into the real estate market and buying a home. Below is a list :

  • House prices tend to rise over time, So a house is one of the best investments you can make. Home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.
  • You’ll be able to use the equity in your home for low-cost loans for other purposes. You can access the paid-up equity you accumulate in your home in the form of a home equity loan or a home equity line of credit. Because they are secured, home equity loans and lines of credit generally carry a lower interest rate than other types of consumer loans, such as auto loans. The interest on them is generally tax-deductible, as well.
  • You’ll pay less tax. You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like

Guide to Set up Your Home for Sale

As with any project, selling a home is easier if you’ve got a solid plan and a bit of professional help. To make the process as smooth as possible, you’ll want to start by making a list of needed projects and involving a real estate agent.

Getting Started
Your first step in preparing your home for sale is to create an overall list of things to do. This consumer guide can help, but you would also do well to consult with an experienced real estate agent who regularly handles properties in your neighborhood. If you are still trying to decide which real estate agent to list your home with, creating a things-to-do list is a good get-to-know-you exercise that will tell you a great deal about a real estate agent’s experience and how comfortable you are working with him or her. Preparing a list will also help should you decide to sell your home on your own, since you will still need to fix up prior to putting it on the market.

Though it’s certainly possible to prepare your home for sale on your own, involving a real estate agent as you make your list

Selling House in Buyer Market, Here Its Tips

Just because you’re full doesn’t mean you can’t browse the menu. And just because I’m not planning to move doesn’t mean I don’t check real estate websites regularly. As life changes — new jobs, growing families, overall changes in need — so do our priorities when it comes to the roof over our head. As a first-time homeowner, I’m an amateur when it comes to buying, and I’ve yet to wear the seller’s shoes. It all makes me wonder, how easy (or difficult) would it be to offload one home in favour of another?

“It’s technically a buyers market,” says Jason Shadbolt, Realtor for ViewPoint Realty, “mainly because there are far more listings than there are buyers. But I use the word ‘technically’ because buyers feel that houses are priced too high and, as a result, are not buying. Until sellers make a price adjustment, inventory will continue to increase and sales will remain low, not making it a preferred market for either buyers or sellers.”

While the biggest driving factor behind sales is price, there are other aspects that can draw or deter a sale that is competitive pricing and doing necessary repairs or upgrades