Posts tagged: home loans

Invest In Paradise

invest in heavenAre you thinking about investing in property? If you are, you should consider buying a holiday home. People who invest in property often oversimplify the equation, missing out key details. For instance, they might just think about how much it costs to buy the property. But they should also be taking into account maintenance bills as well as the legal costs of actually buying the property in the first place. That’s why when you do buy property you need a lot more in your account than just the deposit.

One of the ways to make property investments easier is to look into buying a holiday home. There are numerous benefits of this type of investment. First, you will be able to use the property yourself and get enjoyment from it, even while it is making you money. Second, you can buy a property in a luxury location, driving up the rent you can charge as well as the overall price if you do decide to sell. Third, it’s easier to keep those maintenance bills under control. So, let’s look at the steps you’ll need to take investing in a holiday home.

Choosing The Location

There are plenty of different locations to consider when you choose to buy a holiday home. For instance, you could purchase one on the west coast of California. Orange County is a beautiful picture perfect paradise that tourists flock to year after year.

However, you do want to be careful when buying real estate that you don’t purchase somewhere too far. It needs to be in a location that either you love traveling to or that is close enough for annual trips. The reason for this is that you could have business that needs attending to at the property. Of course, there are always options to skirt around this issue if you have your heart set on a far off location for your holiday home.

Accounting For Maintenance

The best way to handle maintenance is to buy a home in a gated community or a holiday community. In areas like this, maintenance is often covered by local services in the area. As such, with a basic fee, you can always make sure that your holiday home is ready for new guests. That brings us to one of the most important aspects of investing in a holiday home.

Renting It Out

Renting out your holiday home is a great way to quickly make back whatever you paid for it. That’s why you might want to consider buying a more expensive property. This way you’ll be able to charge more in rent and attract high-end guests who can be trusted to look after the property during their stay. Spending a couple of million on a holiday home might seem like a risky investment at first. But when you realize you can rent it out for a couple thousand a night, you’ll see it’s the perfect opportunity.

Good luck with your own holiday home investment. Take the right steps, and you can easily make your next fortune on a home in paradise.

Increase Real Estate Value With Cost-Effective Improvements

real estate valuesIt goes without saying that there are ways in which you can make smart investments and ways in which you can make dumb ones. Investing your money in real estate is a smart investment. It’s a great way to tie up your money in a physical asset that can increase in value over time.

Generally speaking, all real estate investment earn money over time, as the market tends to always increase in value. However, there are ways you can speed things up and improve the value of your real estate investment in a short space of time.

How? By making home improvements. But, not just any improvements, cost-effective ones. You want to make improvements that don’t cost a lot of money but can add serious value.

Here’s how to do it:

Look For The Best Value Option

No matter what work you want to carry out on your property, always look for the best value option. This could mean looking for an option that uses different materials, but costs less.

As an example, say you’re building a garage – which is a great way to add value to the property – you have different materials to choose from. There’s the regular brick and mortar, then there’s steel. Most people go for the first option because they think it’s more traditional. However, the metal building cost per square foot is a lot less than this option. So, in this scenario, steel is the best value option. You still get a garage, it’s still sturdy and strong, you just pay less – simple.

Apply this tip to all your home improvements too. Say you want to replace your roof with a more modern structure, weigh up the material options and find one that offers the best value.

Try And Cover The Cost Of Labor

Often, it’s not the actual improvements that cost a lot but rather it’s the cost of labor. What I mean by this is that paying for someone to come in and make the improvements could cost a lot of money. So much so that it could prevent you from making a profit on your investment.

Bearing that in mind, what you should do is try and cover the cost of the labor yourself. Try and carry out the home improvements yourself or with the help of friends/family. You won’t have to pay any labor costs, and it could save you a fortune. Now, you’ll earn more from the improvements you make yourself, as they don’t cost as much.

Of course, there are probably some home improvements that you can’t make yourself. In which case, you will be forced to hire some outside help. But, refer back to the first point; find the best value option. Look around for a contractor or handyman – or whoever you need – but choose one that offers the best price as well as a proven track record of quality service. Even if you can only do one or two improvements yourself, you still save some money.

It’s all about finding cost-effective ways to improve your home and increase its value. Now, you could sell it earlier than you intended and still make a sizeable profit.

Your Perfect Real Estate Investment Has Land-ed

ideal investments in real estateThere comes a time in every single person’s life where the penny drops and they realise that it could be time to invest in real estate. However, most people have a warped sense of what that actually means and so they start thinking about how they can afford to, the complexities around doing so, the trials and tribulations, the effort and the work involved.

But investing in real estate doesn’t have to mean buying a structure. It doesn’t have to mean investing in an apartment, flat, house, condo, commercial property or residential space, and it doesn’t have to mean fixing up somewhere. You see, real estate does include land, you know. Yeah.

So many people overlook vacant land as an investment, though, which is foolish if you ask us, and here is why:

You Buy It. That’s All.

When you invest in a structure, you have to think about renovation works and replacing stuff, which you never have to do with vacant land. You buy the land and you have the land. You don’t need to have a knowledge of construction or anything, just an idea of whether the land could be suitable for building on. Simple.

It’s So Cheap

Vacant land is so cheap compared to other types of real estate. You could buy a decent chunk of land with the cash that is in your savings right now, probably, and if not, all you have to do is compare personal loans and take the one that you like the look of. That’s it, then. There are no other outlays. No structure to pay for, no mortgage to battle, taxes are teeny-tiny, and so is insurance, if you want to have insurance.

No Hassle Whatsoever

The thing with investing in vacant land is, well, it’s vacant. That means there are no tenants you have to chase up because their rent is late. You don’t need to pay an agent any maintenance fees or get a gardener or a plumber or anything. No. Vacant land is the least demanding real estate investment you can possibly make. Period.

Prices Can Only Increase

Your options with vacant land are endless. Either you can hang on to it and live safe in the knowledge that no one is making any more land, which means your little piece of the earth is only going to become more in demand and demand is good. You could start using it for business purposes, in which there are only a few things to consider. You could even seek out some planning permission and watch as the value skyrockets, and we mean skyrockets, and that’s without even having to put a nail in anything. Whatever you fancy, you can do.

Earn An Income

The thing with vacant land is, you always have options on how to generate money. Think about it. You could turn it into a campsite, you could rent out some of it to a telephone company to erect a mast or a farmer who wants some grazing grounds. Maybe there is an energy company sniffing around. If it’s wind power, then you can go online and see exactly how much wind your land gets. If it’s solar, then you’re an option so long as you aren’t covered by a giant canopy. Money, money, money.

Can You Afford To Buy Your First House?

buying homeBuying your first house can seem like an unattainable dream at times, but every once in a while you hear a story of a couple who were able to save enough money for a down payment. It gives makes you think that, someday, that could be you. However, there is more to buying a house than saving up for a down payment. Read the guidelines below to determine whether you really can afford to buy a house at this time.

Do you earn enough?

If you’re struggling to set aside some money while paying the bills and the rent, chances are you will have a difficult time keeping up with mortgage repayments. You also have to consider the property tax in the area, home insurance, and the fact that you will be responsible for home repairs. This is the step that traps most prospective home buyers.

But don’t give up because you can’t afford a house just yet. Use the time you have to get on top of your financial situation; pay off as much debt as you can and boost your credit wherever possible. This will help your chances of getting a good mortgage.

What kind of financial help can you get?

Once you’ve managed to save some money, you need to find out how much a lender will be willing to give you to buy your first home. A mortgage lender will look at your income, how much debt you have, and how long you’ve been at your current job. All your debt payments plus your new housing expenses – mortgage, homeowners association fees, property tax, homeowner’s insurance, etc. – shouldn’t equal more than 43% of your monthly gross income, according to the federal housing administration (FHA). Based on your calculations, you may have to adjust your expectations on what kind of house you can afford.

Fortunately, there are a lot of other options available for first-time buyers who don’t have a 20% down payment. Your state may have its own programs for first-time home buyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shopping around will pay off.

The buying process

Buying a house isn’t limited to looking for homes for sale on real estate websites. Put out some feelers with friends and family, or look at rental ads and see if the owners are open to selling. This may not be an accepted method, but it will save you from going up against experienced buyers.

Squeeze them for information

Don’t be taken in by what may appear to be a dream house. One of the best kept secrets about buying a home is that your real estate agent has to be honest with you, but only if you ask questions directly. No question is too silly; how many viewings have they had? Why do the homeowners want to sell? Who lives upstairs/next door? You’re hoping to live here, so avoid any unpleasant surprises by finding out everything you can.

Make Investment Property Work For You

property investmentsIf you are thinking about a property investment, then you are in good company. Many canny investors have come the conclusion that this combination of investment and return is a solid way forward. Given that interest rates are stuck in low gear for the foreseeable future it seems like a no-brainer in financial terms.

The property market is still relatively strong. With a high demand and low supply, this is not going to change anytime soon. This means that the rental market is buoyant, and as long as you buy the right property you should have no trouble is achieving a high occupancy rate. To make a success of your venture, it can be good to learn from the experiences of others who have made it work for them.

Buy the right property

This will in part be down to the amount of money you have available or the credit that you can raise. You need to make sure that you are investing in a property that will make a viable letting project. Most property investors will look for property that is relatively inexpensive so as to maximise their returns. You could buy a new property off the plans, or you could seek to make more capital gain by buying a property that needs some renovation. This will, however, be more work.

You could choose between an apartment or flat, or a small house. Individual rooms could be let to working professionals or even students. Look in areas where demand for apartments from these groups is growing. You can let on a short term basis or over a longer period. If you are targeting the student market then you will have to bear in mind you will have a higher turnover which might mean more administration. If you are letting to families, you are more likely to have longer term tenants.

The right property will be in an area where there is likely to be high rental demand. For most that will mean buying a property in a busy and thriving city, or at least in a town that has good commuter access. Look to vibrant areas where there is investment and growth. Cities around the world that offer these conditions include cities in New Zealand such as Auckland and Adelaide in Australia. Thriving hubs such as Singapore and London are still experiencing growth and offer opportunities.

Get the right agency involved.

As an investor, you are making a financial decision so it is not even necessary for you to live in the area, as your property can be handled easily by an agency. It will be much better for you if you work with a reputable local agency. They will have a lot of experience in finding the right tenants for you. They will be able to handle all the contracts and even collect the rent. They will also be in able to let you know what your responsibilities are in terms of maintenance and provide local contractors to do any work for you.

Property investment nationally and internationally is proving to be a viable and reliable prospect. As long as you buy the right property and choose a reputable agent and there is no reason it should not work for you.