Wednesday, April 13, 2011
Tuesday, March 15, 2011
Friday, March 4, 2011
The Importance of Careful Planning in Buying a House! By: Stephanie Kennedy
Real estate developers usually conduct trips for potential house buyers to give them an actual view of the house models they have seen on handouts, billboards, and the companyâs website. Vehicles are being provided for clients who do not have a car or are not familiar with the site. The real estate broker leads the customer in the tour of the site while providing useful information about the house through the model units especially made for viewing.
After the tour, the customer will normally have more questions in mind. This is partly due to the fact that some house buyers are not acquainted with the home buying process. Some are not even keen on buying a house and just want to see what is new for future consideration.
Buying a house follows a process and the process must be known to people who are serious about purchasing their own house. It involves a thorough exam ination of the buyerâs capacity to pay, the type of property to be selected, and the terms of payment. If one of these considerations is not met or cleared, the transaction might not push through. The buyer must go through the procedure step by step without skipping any detail to ensure that possible problems would not come out at the end of the deal.
The first consideration will be the buyerâs capacity to pay. Ideally, the buyer must have a steady work for the last two years. If he or she is not employed, a steady source of income like a business is the next best option. If the property is to be paid through a loan, the buyer must have an impressive personal credit rating to pass any credit evaluation.
After qualifying for the housing loan package, the buyer must also have a significant amount of savings that will take care of the down payment and closing costs. A buyer may want the kind of house he or she has seen but if the income is not enough to cover the mortgage, a lower priced house must be chosen. Because of this, a buyer must take the initiative to be pre-qualified for a loan to avoid disappointment if the preferred house price exceeds the approved loan.
After concerns about financing of the property has been resolved, its time to focus on the property itself. The buyer must research about the developer by knowing its profile, the completed projects, and must also ask homeowners of in the projects. The quality of the houses must be scrutinized as well as the efficiency of services.
The propertyâs location must be far from industrial areas and must not be located along fault lines and danger prone areas. Buying a house is a one time experience for some and should be undertaken with careful planning. Once a house is selected and the decision to buy it has been made, there is no turning back. Unlike other products, a house can not be returned and the buyer will have to live with his decision and live in the house he or she has paid for with a lifeâs savings.
Thursday, March 3, 2011
Real Estate Investment – No Money Down, For Real! By: Stephanie kennedy
With prices of homes are at a very low rate these days, you are thinking of investing in real estate. But the idea struck you, is it the best time to invest in real estate? The answer is yes, if you have the inclination – right now is the best time to put your money in real estate.
But, what about if you don’t have the cash to support your potential real estate business? Can you still move one with your dream business? Yes you can because you have other options of pushing through with your idea. You don’t always need to put money down to start your real estate venture.
Did you know that some real estate investors who have been successful in their field started out with no cash out in dealing real estate? They will tell you that money is not an issue that you can still earn even without putting money in. This is shocking because if that was the case, everybody will want to become a real estate investor. Money is just one part of the package, of course. Hard work more so because it completes the circle in dealing real estate.
Investing (your time) in Real Estate without Money Investments
Scratch the thought of you not being able to make in real estate if you don’t have a large amount of cash. You may very well have 1 dollar in your pocket and with that can make you a real estate investor. Seriously! Don’t laugh. There are quite a number of strategies and techniques that you can use to create your real estate business and that is primarily using OTHER PEOPLE’S CASH to finance your deals. One of that is utilizing the escrow account.
What is Escrow?
You must have encountered escrow before if you have experienced purchasing your own home or from your parents, family or friends who bought their own houses. In case you haven’t, opening an escrow account is like having an option or earnest money. You, as the buyer will have to pay a certain, usually small percentage to the seller so that the house will be kept off the market.
There is no money out here for you because you can either borrow money from a loaning institution for the escrow account and then sell the house almost instantly; or bring the prospective buyer to the house and let him or her pay for the earnest money. Just remember that earnest money is non-refundable in case the sale will not push through. So, you may not put in the finance aspect but you have to be a great sales talker to earn in real estate.
Friday, February 25, 2011
To Buy or not to Buy? By: Stephanie Kennedy
Have you heard of this statement: “The rich get richer and the poor get poorer”? This is sad but very true. Since 2009, the US economy is on recession, and not just any normal short-term recession but definitely the pits. People have hit rock bottom that until now Americans have not fully recovered from it. It’s like experiencing a modern day Great Depression.
Big companies close up and declare bankruptcy. With this, people lose their jobs. Lay-offs are pretty massive all over the country. Some endure the low pay or salary cut in half just to stay afloat and still with a job. Is it enough? No. Food on the table is compromised. Cars are sold second hand because gas per gallon is too steep. Bills are always final notice. Mortgage payments are missed. Home foreclosures become so rampant and the housing market crashes. People don’t have their own homes anymore. Banks and financial corporation’s take the plunge, lose profit and try to sell houses at lower than low rates but still, only a handful can afford to buy.
What happens to the banks and similar establishments? These businesses thrive on real estate investments for decades. It has always been considered a safe investment, real estate. It is a great way to spend money on. In the late ‘90’s up to mid 21st century, homes were selling up until 2009 when the recession enveloped everything. The housing market has become unstable.
Who is to blame for this? The housing market plummeted due to a number of reasons. Banks and financial institutions are partly the cause of this situation. Instead of lending people on safe terms, the banks/institutions charge the borrowers much more than they can pay. How can people keep their payments when their salaries are not enough to pay them with?
Another major reason is the steady decline of the U S economy. Prices are high and yet salaries remained constant, if not cut back. This has affected the whole world as well. Investors of real estate from other countries declare their offices bankrupt and just crash. As of 2009, losses were estimate at $2 Trillion dollars.
But that was 2009. At that time, people were advised not to purchase real estate because the value will go as far down the drain and investing in it is like throwing money on fire. 2011 is a new year that brings new hope – the market will get better, financial analysts have repeatedly said. Prices are low. People are looking to rent for properties and if you are looking to earn, now is the right time to buy. Same is to be said for those looking to buy their own homes. Buy now while the prices are low.
Wednesday, January 26, 2011
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