Kathy Murray's Blog
It is a great time to be a real-estate investor. If you are looking to jump in the investor market low home prices and low interest rates make this a great time. According to Zillow.com. the real-estate market is starting to recover: U.S. houses lost $489 billion in value during the first 11 months of 2009, but that was significantly lower than the $3.6 trillion lost during 2008 and things only continue to look up. While the timing may be right, you will need to have all your ducks in a row. An investment purchase is different than your typical purchase. Consider your options. Have a strategy and know what kind of investor you would like to be. Ask yourself if you want to be a landlord, or are you planning on flipping or restoring and reselling properties. What types of properties are you interested in? There are many choices from land, to apartment buildings, residential housing and other commercial real estate. Partner with experience. Real estate agents experienced in investment property deals know what to look for in a deal. You may also want to consider asking a more experienced real-estate investor for advice. If you plan on becoming a landlord make sure to familiarize yourself with the local laws regarding being a landlord. Location, location, location. If you buy a property with hopes of renting it out, location is key. Homes in high-rent or highly populated areas are ideal; stay away from rural areas where there are fewer people and a small pool of potential renters. Also, look for homes with multiple bedrooms and bathrooms in neighborhoods that have a low crime rate. Also think about potential selling points for your property. If it's near public transportation, shopping malls or other amenities, it will attract renters, as well as potential buyers if you decide to sell later. The more you have to offer, the more likely you are to please potential renters. Have capital lined up. Speak to potential lenders or a financial planner about what you will need for assets and cash flow. You will need to have enough assets to handle the ups and downs that could come with investing. Most experts suggest a fallback of about six months of mortgage payments for landlords. You will need this in case or vacancy or repairs. If you're planning to fix up a home and sell it, you will need reserves to cover the costs to maintain the home while it is on the market. Becoming a real-estate investor is much different than being a residential homebuyer. A buying decision is a business decision not one based on emotions.
The news has been bombarded with negative stories about the real estate market over the past few years, but the tides are turning and inventory is now lower than ever. There are still many opportunities for buyers as prices still remain low. For savvy homebuyers looking to buy in the high-end or luxury marketplace there is tremendous opportunity. If you’ve always dreamed about buying a luxury property but considered it just out of reach, today’s market may has put downward pressure on the prices of higher-end homes making them more affordable than ever. To buy your dream home you will want to have a strategy. 1. Choose your agent wisely. Your agent is your advocate. You will need an agent who is experienced and successful in the luxury home market. Agents who deal in luxury property have the right knowledge to help you locate and negotiate an offer on a high-end home. 2. Take the time necessary. The high-end home search may take more time and patience. The supply of luxury homes may be smaller, you may even need to expand your search or rely or your agent to find homes that may not be currently up for sale. The home will be bigger, have more features and thus there will be more to consider in the purchase decision. 3. Prepare the perfect offer. Cash is king in today’s market. According to the May 2011 REALTORS® Confidence Index from the National Association of REALTORS®, 30 percent of all purchases between mid-April and mid-May of last year were financed with cash. The number was even higher for luxury properties. Even though many luxury sellers may also be in a distressed property situation they are typically more particular about who was buying their property as well as the final selling price. Use your agent to carefully craft the perfect offer.
If you are thinking of adding an addition to your home there are some things you will wants to be aware of. If you decide to add a new space, ask yourself the following questions: * Can I finance the home improvement with my own cash or will I need a loan? * How much equity is in the property? A fair amount will make it that much easier to get a loan for home improvements. * Is it feasible to expand the current space for an addition? * What is permissible under local zoning and building laws? Despite your deep yearning for a new sunroom or garage, you will need to know if your town or city will allow such improvements. * Should I make the improvement myself or hire a contractor? Many homeowners consider going to job alone to save money. Consider how much time you have, your level of expertise or willingness to handle the job, amount of help from friends or relatives, and how much you want, or need, to save by doing the job yourself. You could save up to 20 percent of the project cost through your own hard work. Be aware, however, that you may need to call in the pros. Going it alone can sometimes lead to spending more time and money. if problems arise. Most home improvement experts suggest that homeowners who do not have a lot of experience should stick to painting, minor landscaping, building interior shelving, and other minor improvements.
There is a lot to know when it comes to senior housing. Thinking about future housing arrangements can be a stressful topic for both you and your family. There are so many options, types of housing and so much to know. In order to find the best fit you will have to learn about the different types of senior housing available, which choices may be best for you, and how to navigate the terminology. A great resource SeniorHousingNet has created a glossary of commonly used terms and the different senior housing and care choices available. You can find it here.
The housing market has been heating up and lately there seems to be more buyers than homes. So where do you start when house hunting? Many buyers like to start at Open Houses to get a feel for the market. It is always best to try to find a real estate agent to help guide you through the buying process , however, if you want to try to get your feet wet first an Open House might be your best bet. There are some things you will want to know about how to tackle an Open House: 1. How do you find Open Houses? Your best bet is to find a real estate professional that represents buyers and have them help you find Open Houses that are right for you. Agents are familiar with the inventory and could save you an unnecessary trip to a house that isn't right for you. Most open houses take place on Saturday or Sunday, so Thursday is a good day to start your search. 2. Be prepared Plan your route, make sure you have the right directions and have plenty of gas to get where you are going. Take along a pen and paper to make notes on properties. 3. Get to know the area The house may be great; but how is the area? Take the time to drive around the surrounding neighborhoods of homes you like and get to know the area. A real estate professional is a great resource for community information. 4. Check for agency Most agents at an Open House represent the seller. You will want to work with an agent that is able to represent you as the buyer. If you like the agent at the Open House, and have not yet contracted with an agent, make sure to discuss agency and representation. 5. Take notes Take notes and write down a list of quick pros and cons after you have viewed a home. This will help you remember the houses you have viewed. Viewing Open Houses can help you get a sense for what’s out there in the marketplace. It will help you determine if the house you want and your finances match up with the houses that are on the market. It is always best to find a real estate professional to help you find the home of your dreams. Buying a home is no small matter.