Posts tagged: property

Are House Prices Likely To Go Down?

balance house pricesWhenever you hear people talk about the housing market it’s all doom and gloom. Prices have been rising consistently for years and there’s a serious fear that a whole generation of young people isn’t ever going to be able to afford a house. Last year was set to be a positive one for housing and an increase in house building was predicted, but the reality is, that didn’t happen. Things did improve a little but not as much as we hoped they would. So, it doesn’t look good at the moment and it feels like it’s never going to get better, but is that really true? Nobody knows for sure but these are some of the major predictions from experts.

Prices Will Rise, But Not As Much

This is good news and bad news. Prices rose by a significant amount every month last year, especially in the latter half of the year. Some people predict that trend will continue, but the increases will slow right down. There are a couple of reasons for this prediction. Firstly, unemployment is going down and people are able to afford houses more easily. Demand is stronger and there will be a slight increase in the number of people that are actually buying houses.

Another factor to consider is the number of people opting for alternative housing situations. More people are opting for prefabricated mobile homes, sometimes called mobile homes. These are far cheaper because the components are made separately, shipped over, and constructed on site. The impact of this is minimal but people choosing to go for alternative housing is going to alleviate some of the strain in terms of housing shortage. It also means that houses can be built far more quickly.

On the other hand, real estate as an investment is on the rise so if all of the houses are being bought up by investors, prices could carry on increasing.

This prediction is good news overall because what they’re essentially saying is that, while there won’t be an immediate turnaround in house prices, we’re coming toward the top of the peak and will soon start to see a downturn in prices.

Affordability Will Go Down

Wages are forecasted to grow in some of the larger cities in America which you would think is good news for buying houses, unfortunately it’s not. The amount of homes that are affordable to somebody on a medium income isn’t growing. That means they are unable to access the cities where wages are growing in the first place, so they can’t get the higher wages they need to buy a house. This disparity is one of the biggest problems in the housing market at the moment. Even if house building does increase this year, they aren’t likely to build the affordable housing that is needed to redress that imbalance.

Credit Availability Could Improve

After the crash of 2008, the availability of credit was regulated more strictly in order to avoid the same thing again. However, the new Trump administration has floated plans to roll back a lot of that regulation so banks will be more free to lend money again. It could go one of two ways; either they’ll start lending more freely and people might be able to afford to buy a house, or they may carry on operating the way that they are at the moment.

There’s no telling exactly what will happen with the housing market but these are three of the best theories so far.

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Is Owning Your Home Worth The Hassle?

home owningA dream for many of us is to eventually own our homes so that we don’t have to worry about things like being kicked out by a landlord, or having to move because of renovations being done to the building. Also, once you have paid off your mortgage you no longer have to worry about paying towards the cost of the property unlike if you were renting. All you have to pay for is your utility bills and other essentials like food and clothing. However, with the rising cost of properties and the difficulty of obtaining one, is it worth owning a property? This article is going to explore why we think that even though it’s a hassle, it’s definitely worth it in the long run.

Cost

It’s a little known fact that when you buy a property, not only do you have to find the money for a deposit (it’s usually 10% but it can be lower depending on your lender), but you also have to find the money for upfront fees. These are usually from your realtor and they are to compensate them for handling your property and your move. These charges aren’t something that many people think about until their realtor puts it in front of them.

While these charges might be more of a hinderance than anything else, it’s definitely worth digging into your pockets to pay for it because when it’s all said and done, you’re officially a homeowner and can begin looking forward to creating memories in your new home.

Location

If you’re looking to buy a home away from where you usually reside, it can be difficult to pick a location for you to settle down in. Competa properties offer people that are looking into becoming a homeowner the chance to own their own property for much cheaper than you would in the USA or UK. So if the prospect of living abroad excites you, it’s definitely worth checking out what they’ve got on offer.

If you’re planning to stay local, then a simple trip to a realtor will help you discover what kind of properties are on offer, and it will even help you plan how much you’re going to need to save to get the property of your dreams.

While choosing a location might be something that blows your mind a little, think about the fact that you’re in a position to live anywhere that you want, whereas people who rent don’t often have a wide choice.

Upkeep

Another thing that puts people off buying their own homes is the upkeep of the property. When something goes wrong, it’s up to you to make the repairs to your home. Unless of course, it’s on the pavement that you don’t own. If for example your boiler breaks, it’s up to you to either replace it yourself, or hire a professional to come and do the work for you. Obviously this can be costly, and if you’re salary is only making enough to pay your mortgage and other bills, this could be a problem.

One way of solving this is to arrange with your bank a saving scheme for when times like these arise. Most banks these days offer something to help you save money, whatever it’s for. Alternatively, you could put as much money as you can afford away each month so that if something does happen, you know that you’ve got some money to dip into for repairs.

Again, while this is something that puts people off, it can also be turned into a good thing. This is because when you do have repairs made, you can ensure that it’s done to the best quality so that you don’t have to pay for it again any time soon. Whereas if you were renting, you’d have to contribute to your landlord who might go cheap on the repairs and keep the extra money for themselves.

Conclusion

As you can see, there are many downsides to owning a property but in the long run there are always solutions around it. For example, if you ensure that you have home insurance, some repairs you might be able to claim from that, especially if it’s caused by a natural disaster or robbery. While it might be difficult to begin with, wouldn’t you rather have your home to own when it comes to later on in life too?

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Selling Up? Here’s How To Do It On The Cheap!

home selling optionsThere is no question about it; your home is the most expensive item that you will most probably ever own. Buying a home is no easy task, which is why it is so upsetting that when it comes to selling up and moving on, it can cost so much, eating into your valued investment.

So what can you do to cut costs when selling up and ensure that you are able to hang onto as much of your hard earned cash as possible? For all of the best tips and suggestions, read on.

Haggle

When it comes to dealing with estate agent’s fees, the best thing that you can do is haggle. Take the time to have a look for estate agents in your area – pick a mixture of corporate and independent ones – and then compare their prices. Choose the ones that you like best and think will be the most successful at selling your home and ask for quotes. What you can do then is haggle – tell your estate agent of choice the other offers you have been given and ask them to beat them. Stay firm and stand your ground, and you should end up getting the help of an estate agent on the cheap. As for the solicitors, the same advice applies. Their fees can be extortionate, which is why haggling is vital. Get a range of quotes to use, compare different companies, and then haggle on the price and ask who can beat the lowest price. The more you can haggle, the better.

Look at your selling options

The next step is to look at your selling options. When it comes to cutting costs and saving money, it is important to look at each and every option that you have when it comes to selling home. There are some fantastic services out there that can help you to get the best deals possible when it comes to selling your home. Take the time to research and compare all of the best services, to ensure that you are able to get the best deal on your property sale and keep costs as low as possible.

Ensure you get what you pay for

If you are going to pay for a service, it is vital that you get what you have paid for. The fact is that when it comes to selling up, prices can be high, which is why you need to ensure that whatever you pay for, you get. After all, the last thing that you want is to waste money, right? So make sure to monitor every service that you use, to ensure that when it comes to what you are spending, every penny is worth it.

There you have it, everything that you need to know about selling up and doing it on the cheap. Admittedly, selling a house is never going to come cheap, but you can cut costs and make the process more cost-effective if you take note of the tips and advice above.

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Can You Afford The Real Cost Of Property Investment?

investments in propertyOodles of cash flowing in. That is what most folks think they will get when they chose to invest in real estate. However, this isn’t always the case. In fact, it’s important to realize that there are plenty of outgoing expenses to think about as well. With this in mind read on for some advice on what you will need to pay out if you are looking to invest in property so you can establish whether its something that you can comfortably afford.

Deposits

Usually the most significant cost for people investing in properties the initial deposit they need to make. After all, the larger the deposit you can put down the less monthly fees you will have to pay. Maximizing your profit potential, whether your lease it out or sell.

The problem is though that while investing in property may be a great long-term way to make your money work hard for you, there are some situations in which it isn’t the best idea. In particular, if you have a lot of outstanding debts, it’s always better to pay these off first rather than start saving for a house deposit. To work out how to do this, you can see sites like debtreliefprogram.co for some advice on how to get out of debt. The idea behind this being that your debts will always cost you more, because of the rate of interest you are paying on them.

Therefore it’s just a false economy to start saving for something else while theses still need to be settled. Meaning if you have large outstanding debts it’s always better financially to settle these first before you venture into the property investment market.

Renovation

The initial costs of purchasing a property are not the only ones you have to worry about though. In fact, there are quite a few others. One that can be pretty pricey is the cost of actually renovating the home that you buy, making it livable and attractive to buyers and tenants.

Of course, this will depend on the initial state of the property, as well as the standard you are looking to raise it too. While time is also a factor here. Many people spend more to get the home they have bought ready quicker, so they can then flip it quickly for a profit and ensure continued cash flow. So you will need the resources not only to purchase but also to renovate for your investment to be a success.

Fees

Unfortunately, these are the only cost you have to worry about when investing in property either. There is also a myriad of other things including property management fees and upkeep for lettings, and for sales legal fees, surveys, and realtors fees, usually at 6% of the total sale. Get a breakdown of where this goes at sites like bankrate.com if you want to understand this process better.

Something that demonstrates you do need to have substantial funds that are freely accessible to make a success of this type of investment.

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How You Can Afford a Second Home

house available to dealWould you love a second home? A place that’s waiting for you when you need a break? Somewhere that’s totally different from where you spend most of your time? Your own private getaway where you can relax and unwind whenever you need to? I’m sure for most of us; the answer is yes. It would be fantastic to have a home at the beach or out in the country, ready for when you need an escape from city life. Yet, unless you are very well off, you probably think it’s nothing more than a pipedream. Ordinary people can’t afford to buy two houses, never mind run them. However, buying a second home might not be as difficult as you think. Here’s a look at how to make sure that you can afford the second home that you have always dreamed of.

Choose the Right Home

Buying a second home isn’t a decision that you should rush into. While it can be fantastic, it is a significant financial commitment. The first thing you need to do is create a budget. Be realistic about what you can afford. Then look at houses for sale that fit the bill. Owning a second home is a brilliant investment, but only if it’s a house that you can afford. Don’t let yourself get carried away.

Rent It Out

One way to ensure that you can afford your second home is by making it earn its keep. If ever there’s a time when you know you won’t be using it, rent it out as a holiday let. Alternatively, if you plan to spend most of the summer in your second home, why not rent out the first for city breaks? Airbnb is a great option when it comes to making money from your home without committing to long-term lets.

Rent Out Space

If you don’t like the idea of people living in either of your homes, why not rent it out as space? You could rent a spare room out for storage, or even lease out your parking space. This can be an excellent earner in city locations.

Remortgage

Remortgaging your first home is one way to finance buying a second. Just make sure that you can afford it and that you are willing to take on the long-term financial commitment.

Save

The best way to afford a second home without getting yourself into financial struggles is to save and buy it outright. Or at least save to pay your first mortgage off early before taking out a second on a new home.

Understand the Costs

Before committing to buy, make sure you understand the costs of two homes. The costs don’t stop once you’ve purchased the home. You also need to pay bills and insurance on it, and you’ll have to pay to travel there regularly. Can you afford it? Make sure it’s a worthwhile investment that you will get a lot of use out of.

Owning a second home could be a dream come true. It’ll also mean you’ve got more options when it comes to retirement, and a whole other source of cash if you ever need it. Look at your options carefully and get saving and you’ll be relaxing on the beach in no time.

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