Real Estate - Market, Mortgage, Buying Homes, Selling Property » Property

Free Foreclosed Homes

admin — Sat, 07 Aug 2010 14:52:26 +0000

Photo by merfamForeclosed homes that are sold at 30%-40% less than the market price are called free foreclosed homes. Real estate investing on such properties will give a neat profit as the prices that they are quoted to be are not the actual selling prices. So if it is sold at the same price as that was quoted on the price tag, there is still a profit to be made.

These real estate properties are sold at a low price because the financial institutions that own them just want to get the money invested back. The reason why financial institutions such as banks and lending companies exist is to make a profit. Any bank is always hesitant to ‘play heavy’ on their borrowers because they always want to make sure that the monthly payments and interests are made regularly. This is the only way they can make a profit on their money they loaned borrowers, on that interest rate. Foreclosed properties means that the bank lost money on this investment and they are always making moves to get their money back as soon as they can.

Before buying a free foreclosed home, however, investigate the property first. Look at the location if it is saleable and viable. See if the value of that property is competitive with the other properties around it. If it is too high, then the property would be difficult to sell. If it is low again, then the potential buyers will think that there is something wrong with it.

If the price is right and the area is viable, the next thing to investigate would be how much repairs are needed to be done. Do not buy a property where the cost to repair it would be higher than actually building a new house. Be wary of ‘good deals’ because there is always a chance that it may be a loss instead of a profit.

Once the decision is made to buy it, prepare the money needed to cover for the bidding. It would be very embarrassing to win the bid and tell the bank that the money you have is still unavailable.

Buying a home in the current scenario – Home buying tips for first time buyers

admin — Sun, 14 Mar 2010 09:25:49 +0000

If you are a first time home buyer who is looking at taking advantage of home prices going south, you need to integrate a few tips into your process of buying. Here are a few tips that can help you buy a great house; one that suits your needs and requirements best.

Not just the price

Most people who are buying a house today want to take advantage of the recession hit real estate sector. The prices of houses are low and in many cases have hit rock bottom. But, it’s important to look beyond the price.

You also need to think about securing a quality mortgage loan. While doing so, it would be a good idea to go through the fine print with a fine tooth comb. Even if the interest rates are below the existing market rate, make sure that they remain so for the duration of the loan. Remember that the mortgage loan is the single most important document that you will ever sign in your life. So, don’t be hasty and understand it before you actually go ahead and sign on the doted line.

Consult an expert

There are legal experts that will help you review all the paperwork. The current scenario is chaotic at best and banks as well as the federal government ask you to go through a detailed process of paperwork. In lieu of the current situation, quite a number of lenders offer first time homebuyer programs. It’s always a good idea to consult experts who know the ins and outs of the process of buying a house. This will help you avoid taking a wrong step.

The hidden fees angle

First time buyers might just get caught up in the web of hidden fees. These are essentially nuisance fees that over time can add up to thousands of dollars. Again, this makes it doubly important for you to go through the paperwork. If you doubt the legitimacy of a particular charge demanded from you, it makes sense to ask for a valid explanation.

Search for the best house

In these days of foreclosures and short sales, you will get a great deal on the house, but you need to make sure that the house is free from defects. Before you close the deal, you need to point out these defects to the seller. Also follow up, whether the repairs have taken place or not. Don’t worry! Landlords who have put up their houses for sale are only too happy to get a house off their hands. So, getting repairs done is not going to be a problem at all.

Secure Low Rental Deals

admin — Sun, 14 Mar 2010 09:15:19 +0000

With the economic still looking sluggish, even business owners are in a frenzy trying to reduce overhead costs so as to boost their company’s cash flow. One way of doing so is to negotiate with their landlord on a rent reduction. Here are nine ideas that you should take note of when discussing with him about a possibility to slash rents.

Firstly, hire a commercial real estate broker, who is skilful and knowledgeable. Work on a fee with him based on the actual rent reduction that you are looking for. Do a market research. Have your broker carry this out for you. Check several properties which are currently in the market for rental. Compare the various rents they are charge and even check out the premises to find out if the property is worth the asking rent. You may also ask your broker to do a market survey of a number of completed lease transactions. This will give you an idea of what the latest rate is.

With all this information, you will be able to come up with a cross comparison of the current property and the ones available in the market. See how the current property fits in with regard to this. Now begin the discussion. Provide the landlord with a proposal that outlines the terms and conditions of the desired rent reduction. This proposal should spell out to the current owner that properties available for rent in the market usually remain vacant for 3 to 6 months before securing a tenant. It should also show that many landlords are letting tenants rent the property for free for a couple of months before charging.

In trying to get a rent reduction you may need to be willing to extend your lease should you the reduction. This will give the landlord an incentive to agree to lower the rent. Also, be aware of rent adjustments that may be tied to the consumer price index with no ceiling. If this is the case, you may have to adjust your rents according to the inflation rates. With a shortage in the demand for tenants, the rental rates might increase in the years to come. Be willing to share financial information with the landlord so he knows you are genuine in your need to reduce the rent. Discuss this deal with a positive attitude but do not come across as being demanding or tough. Go prepared and impress the landlord who would be left with little choice but to agree to your offer.

Finding a Good Property Mortgage Broker

admin — Mon, 05 Oct 2009 14:58:28 +0000

If you are looking to getting a mortgage for your property and have not been down the mortgage selection path before then you will know how hard it can be to find the right mortgage for your needs. With so many residential and commercial mortgage products on offer how does one decide which is the right product for your requirements.

Well the first thing to do is to contact a good mortgage broker. Mortgage brokers are essentially agents that help people find the best mortgage product from the minefield of mortgage products available on the market.

A good mortgage broker will have access to hundreds of products from various lenders and will guide you through to choosing the best one. Ss choose a mortgage broker who is well experienced and works independently to give you a wide selection of mortgages to choose from. A good tip is to work with a mortgage broker who also has access to bad credit mortgage lenders in case you need to apply for such a product.

A good way to find a good mortgage broker is to get referrals from family and friends. Ask around and see if others can recommend a broker they have used. In addition to this, choose a broker who does not charge high mortgage arrangement fees. In the UK for example, although there is no set figure for how much a mortgage broker should charge the “average” is normally around £500.

Finally make sure that the mortgage broker you choose is certifies by the FSA and in a position to give you qualified mortgage advice.

How to Stop Foreclosure?

admin — Sat, 26 Sep 2009 19:05:27 +0000

Foreclosure is a procedure to be carried out by the lender against the property of the borrower if he commits any fraud or fails to pay back the loan according to the agreement. In such case lender will surely tend to make some measures to cover his amount from the property mortgaged by the defaulter.

Obviously the lender will get his loan back but the borrower will have to suffer loss so the borrowers may be found thinking to stop the foreclosure process to save their property. But there must be technical guidelines for the borrowers to stop foreclosure. Many people may claim that their suggestions are very fruitful in this regard. Most commonly and effectively used methods to stop foreclosure include:

Loan Modification
Full Reinstatement
Repayment Plan
Forbearance
Deed in Lieu
Considering a Short Sale

People may go through many websites providing guidelines to the borrowers to prevent foreclosure. This website has tried to provide quality tips to stop foreclosure. People will surely like to get advantage from these guidelines as these are applicable not theoretical but practically. So borrowers should feel free to follow these instructions.

Property Prices Fall In London

admin — Sat, 29 Aug 2009 16:10:24 +0000

Across Central London the prices are seen to be at a declining curve recently. The head of residential research and studies Knight Frank also stated that this fall in prices is nearly reaching 4% before the occurrence of Christmas. It might also lower down to 1.5% in February and 1.6% by next March. He says the last two months has seen market activities to be enhanced. In areas like Central London the number of properties that has been exchanged has risen to 26% on annual basis. On a monthly basis the rise is around 13%. The activities of sales are experienced to be more during the months of February and March.

New properties emerging in the markets in London are not much. The curve shows a downward inclination with 42% less number of properties in March. The primary issue hitting London property market recently is the increase in shortfall of stocks in primary locations. Since last March the stock of available properties in London for purchasing has lowered down to 30%. Mayfair is the most popular and strongest local market in the central regions of London. More than its geographical area, Mayfair is popular because of its sophisticated and fashionable culture.

During March, Mayfair saw a price declination of 0.3%. The foreign buyers comprises of around 60% of the market over here. News show that the leaders in the business world have given a warning that in near future property related investments can damage our economy. The consumer expenditures will be lessened and the overall growth and development will be affected in the coming year. These will directly affect the credit structure and the situation can worsen. The sellers are trying to compromise to the situation that purchasers are not willing to take any chance to buy property during this time of downward trend in the market.

Search Property In Calgary

admin — Wed, 26 Aug 2009 20:52:22 +0000

A proper search of property is required before you buy a home in Calgary in Canada. This decision should not be taken in a hurry just because friends and family has recommended you the seller. Property search is the right process to search for a suitable home in Calgary. This will save you unwanted expenditures and worries. The property search agents are professionals working in this field for long time. They have lists of various kind of property.

When you are interested in purchasing a particular Calgary home you can communicate with the owner and check out how long they have owned the house. While purchasing a home it is necessary to check the life span of the property. This gives you an approximate idea regarding the wear and tear and repairing costs you need to undergo after purchasing the house. This will help you calculating the value of the house for which you are paying. The more the old a house it signifies the more repairing costs are involved.

You must also ask the owners regarding the original purchase price of the particular home. You must also confirm this with the agents who sell homes here. One must also undergo a thorough inspection regarding any kind of debts or mortgages related to the property before finalizing the deal for purchasing the property. This will assist you calculating the liabilities involved with the property in search.

A proper property search also involves whether the particular property has been listed previously. You can check the changes in the value of the house and the underlying causes of such changes. You can know the financial status of the current home owner. If the purchase price is too high than the selling price that might mean the owners are in a rush to sell off the property or maybe there are no demand among buyers for that particular home. This information can work wonders for your advantages

U.S Real Estate

admin — Mon, 24 Aug 2009 18:32:08 +0000

United Stated tops the world market in real estate and property business. The real estate activities in U.S are very important and crucial for the world economy. The world economy got affected to a considerable level by the Housing Bubble that starting of the Sub-Prime Crisis. Hence the whole globe witnesses the Financial Crisis for the year 2008 and 2009. During these years the prices in the housing sector have collapsed. Foreclosures have enhanced to a great level. However, the good news is that the prices of houses and property have become reasonable and within the pockets of the common man. It is speculated that when the economy recovers fully the real estate and property sector will also experience improvements. The house prices will also rise up in places with good employment opportunities and prospects.

The United States real estate market is divided into two areas. These are termed as commercial real estate and residential real estate. The main focus and discussions are related to the residential real estate sector. But commercial real estate sector is extremely important for a country’s economy and revenues. The commercial real estate sector is characterized by the prominence of shopping malls, offices, warehouses, factories and all other commercial properties.

To make it a success at the investment business related to the real estate market an investor needs to undergo through extensive research and understanding of the trends in the prices of the housing sector. They need to read the conditions of the market and the value of the property. They must also be capable of securing a good mortgage value or any other way of financing for the real estate business. Real estate in the United States plays a crucial role in the economy and development of the continent. The customer’s biggest asset is housing and for the Government this sector provides the largest revenues from tax.

Perfect place for living

admin — Thu, 07 May 2009 17:50:52 +0000

Many people look for a perfect place for living where they can spend the most unforgettable moments in their life. They look for a place where they will be able to grow their child, the place where they will feel secure and safe.

For many people Toronto homes is a perfect place for living which has every which is required for living. Also prices for such places such as waterfront condos or yonge eglinton condos have a tendency to fall under the influence of the problems in the real estate sector in the USA. But in this situation many people who would like to buy their first flat can benefit because there would never be such low prices. Also you must keep in mind you get a perfect place in the most respectable part of the city because it a perfect way to invest all your money now because prices for Toronto homes will grow again after the problems in the real estate sector in Canada are over. So why not to start investing in the most profitable thing in the life of every person which is property. And now for such a small price.

Mortgage Overpayments

admin — Mon, 15 Dec 2008 18:24:04 +0000

I recently received a letter from one of our Buy-to-Let (BTL) mortgage lenders. No names here, but their parent company was recently nationalised. In it, they were encouraging us to use the opportunity of reducing mortgage interest payments to make overpayments on our mortgage account to reduce the size of our mortgage debt. There was a nice glossy leaflet extolling the virtues of doing so.

Please be in no doubt, their interest in encouraging you and I to do this is entirely for their own commercial benefit. After all, if you as a borrower are paying mortgage interest at say 2.75%, I can’t imagine why the lender should want to encourage you and other borrowers to make overpayments. Maybe it might have something to do with improving their balance sheet or, maybe, just maybe, they have worked out they can then lend the money from these overpayments to new borrowers at a lending rate of 5% to 6% and charge the new borrowers an application fee of 2.5% too. Or am I being a little too cynical?

I find the communication from the lender both very self serving and also worrying in its lack of honesty and objectivity. For many borrowers, making such overpayments could actually be very detrimental to them. Let me explain a little more;

The Benefits of making overpayment on a Buy-to-Let mortgage

1. It reduces your debt

2. It reduces the amount of interest you pay in the future

3. The lower the debt as a Percentage of the value of the property, the more likely you are to be able to re mortgage onto a competitive rate in the future, (once competitive remortgage deals reappear on the market).

4. If you are likely to need the income from the rental properties to supplement your other income to live on in the foreseeable future, reducing your mortgage will free up more of the rental income for you to use. (Though this does raise a further question as to whether maintaining and rely upon a rental portfolio through retirement is appropriate for you as an individual).

5. If a rental property is vacant at some point in the future, you will spend less from your other income servicing the debt.

The disadvantages of making overpayments.

1. A borrower can only offset the interest payments against the rental income to reduce the tax liability, NOT any capital repayment. So, any overpayments you make will result in an increase in Income Tax liability going forward.

2. Unless you are using an ‘offset mortgage’ any overpayments you make on your mortgage are a repayment of capital, which are no longer available to you. If you want to borrow this money again, it will be a new loan subject to the terms currently available and subject to your status at the time of the application. If you find that in the future you have lost your job, your business cash flow is going through a tight patch or your sources of income are not high enough to meet your needs, you are not likely to re secure such facilities. Had you not made the overpayments and simply placed them in a deposit account, that capital would have been available to you to use, thus providing you with more breathing space until your situation improved or to give you a chance to sell a property.

3. It is highly likely that the mortgage interest rate you are paying on an existing deal is significantly lower than the rate on new deals currently available. Thus if you want capital to put toward future property purchases, (or even other purchases such as a car), you are not going to be able to secure new borrowings at the rate you currently have. Currently, most borrowers who have a deal which was secured before the onslaught of the credit crunch and has now reverted to the variable rate, is likely to be on a pay rate of between 2.5% and 3.8%. New borrowing facilities are typically starting at circa 4% yet have application fees of 3.5% and are limited to lending a maximum of 70% loan to value (LTV). If you need 75% LTV, the deals start at circa 5.3% with application fees at circa 2.5%.

The above is not intended to be an exhaustive list. Neither should it be construed as personal advice. Each individuals circumstances and needs should dictate the appropriate course of action.

There is another very important matter the letter from the lender does highlight. The importance of not being short sighted and simply spending the new rental income surplus in excess of the mortgage payments. There is a huge opportunity here for individuals to use this as an opportunity to save more tax and to significantly increase their long term wealth and financial security.

I would strongly urge those of you contemplating mortgage overpayments, (be they on a BTL mortgage or even on their own domestic mortgage) to seek good independent advice as to the best options for you.

To find out more about;

1. The authors background, motivation

2. To Contact Karl or ask him a question

3. To access his useful website resources

4. To read his controversial and incisive articles

5. To register for his free bi-monthly newsletter or load the RSS feed

6. To download his self help e-book on understanding how the different layers of the industry work, so you can seek out the most appropriate type of adviser for your needs. It also provides you with the tools to do it yourself

Please visit the website, http://www.karl-lavery.co.uk

Alteratively, you can also discover more about the Holisitic Financial Planning service he offers by visiting his work website http://www.baxterfensham.com