The Prospect Of More Future Supply Is Also A Consideration, Although The Time Lag Before Such Spaces Are Completed Will Still Place Constraints On Occupiers

Category: Finance, Real Estate.

In spite of recent uncertainties in the financial markets, there was no discernible dampening of demand for office space in Singapore.

While we foresee further upside to rentals, we expect that the pace of rental growth may ease going forward. Whilst demand remained broadbased with sectors such as energy, printing, IT, insurance and foreign law firms taking up office space in the third quarter, it was the financial and banking sector that continued to dominate as the potential source for large space requirements. The observed tenants increasing resistance to rental hikes while occupiers are more prepared to explore lower cost locations and alternative premises options such as business parks& hi- tech spaces. Prime office rent averaged$ 160 psf/ month, rising 17 per cent quarter- on- quarter and 86 per cent year- on- year. The prospect of more future supply is also a consideration, although the time lag before such spaces are completed will still place constraints on occupiers. Prime rents have exceeded the historical peak in 1990( $150 psf/ month) as well as our earlier forecast of$ 150 psf/ month for end- 200Grade A office rent averaged$ 190 psf/ month, reflecting an increase of 17 per cent quarter- on- quarter and 91 per cent year- on- year.

As at end- August, full potential supply( the aggregate from known private sector project supply, awarded GLS sites as well as potential supply from expected future land sales) amounted to 18 million square feet for 2007- 201 This reflects an increase of 147 per cent in absolute quantum, from the full potential supply of 4 million square feet that was identified two quarters ago at the end of March 200This works out to an average potential annual supply of 806 million square feet for the next six years, higher than the past ten- year average supply of 53 million square feet per annum. The government has reacted to escalating office costs and lack of expansion space by injecting more sites for sale under the 2H 2007 Government Land Sales( GLS) programme. The average projects annual take- up of 6 million square feet for 2007- 2012, even if full potential supply materalises, we forecast that there will be relative equilibrium between supply and take- up over this period and remain in the range of 90 per cent to 90 per cent. Notably, a fund linked to Goldman Sachs bought Chevron House from CapitaLand for$ 364 million( $2, 780 psf over NLA) , setting a new price benchmark- exceeding the rate of$ 2, 650 per square foot for One Finlayson Green. The office investment market remained active with some$ 459 billion worth of transactions chalked up during the third quarter. The average capital value for prime offices was estimated at$ 2, 900 per square foot in Q3 07, reflecting an increase of 10 per cent quarter- on- quarter and 118 per cent year- on- year.

As such, it may be timely for all in the sector- landlords, policy, tenants- makers- to take stock of the market dynamics in setting out policy and making decisions. Prime office yields were at 32 per cent up slightly from 23 per cent in Q2 0 On the supply side, the government s reaction has been measured so far, but care is required in monitoring any future change in demand for office space.

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Rather Investing Is When You Put Money Aside For Year Together - Milagros Parson about Finance and Real Estate:

Real Estate Investing is no longer the special past time of wealthy businessmen.

So, You Want To Know What The House Price Would Be Equal To Paying$ 1000 Per Month - Finance and Real Estate Articles:

When someone decides to buy a house, one of the first tasks is to talk to a lender and determine the maximum loan they can get. There s lots of calculators out there that will help determine this.

Local Authorities In Spain Are Beginning To Crack Down On Second Home Owners Letting Out Their Holiday Homes By Insisting Each Property Has To Have A Tourist Licence- And Very Few Do

Category: Finance, Real Estate.

Second home owners in Spain could soon be considering selling their apartment or villa as interest rates in both Spain and UK rise- making the possibility of a fall in Spanish property prices more likely. One way overseas property home owners can protect their investment is to rent their property out to holidaymakers, and many will turn to this option if they have bought their home with a mortgage, and repayments increase as interest rates rise in Spain and other European countries.

Property in Spain is already on the brink of seeing prices drop for the first time in twenty years, and large numbers of second home properties being put on the market could be the trigger that will see deflation in the near future. But some will find this option closed to them, as they either investigate the possibility for the first time, or try to increase occupancy levels from previous years while interest rates and mortgage repayment levels were lower. British overseas home owners are being squeezed on higher interest rates after five rate increases in the UK base rate over the last year, as well as higher repayments on their second homes. Low interest rates and cheap mortgage repayments have been the key to the boom in British people buying property in Spain recently, and affordability has been easy on low levels of occupancy for those letting their homes out. Local authorities in Spain are beginning to crack down on second home owners letting out their holiday homes by insisting each property has to have a tourist licence- and very few do. But property owners can face a fine of up to 30, 000 Euros if they don t have the correct tourist licence if caught- enough in itself to see for sale signs going up on the Spanish Costas. It s an issue that has only come to light recently, with few if any buyers asking estate agents in Spain if they need one- and if an estate agent does know he or she has been unlikely to say anything as renting out a holiday home is important to many potential buyers- and what could be viewed as a wrong answer might scupper a deal, and the agent s commission.

The Daily Telegraph, a leading daily newspaper in the UK, reports that many of the 300, 000 British investors in Spain s overheated property market have already turned to the lucrative holiday rentals sector and many more are considering doing so to ease their mounting financial strain. A spokesman for the Spanish Tourist Authority commented that there are strict conditions before properties are approved for rental to holidaymakers, but hardly any are licensed, which means letting them to tourists is illegal. But, seduced by the prospect of netting GBP 1, 000 a week in high season for a two- bedroom flat with a sea view, few realise that they face swingeing fines of up to 30, 000 Euros because they are breaking tourism laws. Already several British investors in Majorca, the second most popular holiday- home market after the Costa del Sol, have fallen foul of Spanish law according to the Telegraph. So spectacular have the price rises been over the last ten years that many Spanish homes on the Costas have doubled and more in value, but a return to late 1980 s price drops is more than just a possibility with another rise or two in interest rates in the UK and Spain. And while the British who have moved to Spain over the last twenty years have seen their investments rise in value, consistently above the price of inflation, they could been in for an unpleasant surprise with the contining signs that the housing market in Spain is weak, and prices could soon drop.

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Investors Are Making Excellent Choices When It Comes To Overseas Property - Finance and Real Estate Articles:

Investors are making excellent choices when it comes to overseas property.

Experienced Bankruptcy Lately - Cara Bickers's Finance and Real Estate blog:

Experienced bankruptcy lately? You may also be wondering if buying home after bankruptcy is a good idea for you.

Lenders Borrow Money From Its Savings Account Holders And The Federal Reserve - Finance and Real Estate:

The question of whether lenders mistreat foreclosure victims has two sides and both are based on historical fact.

By Comparison, All Ten Suburbs To Report The Lowest Increases In Median House Prices Were In The Outer Suburbs, And Areas Not Well Serviced By Public Transport

Category: Finance, Real Estate.

If you are renting and paying$ 950 a month, it s very easy to spend the rest of your pay- packet on meals out, and entertainment, new clothes.

This is a habit aspiring home- buyers should get into. There is some inherent benefit of having a mortgage and needing to pay the loan repayments. That is what many people are doing. Most tenants have heard, in the media, or read, how tight the rental market is at the moment. Agents say, that in most cases, expectant owners who rent, have chosen to absorb higher rents and stay where they are, while continuing to save for a house. They are prepared to pay the difference, until they decide what they want to do. Agents overwhelmingly tip that the inner city and middle suburban areas are safer investments than the outer suburbs, a fact supported by REIV( Real Estate Institute of Victoria) findings.

In many cases, the rent rises are encouraging them to get into the market sooner. In its latest analysis of the market, it highlighted that each of the top ten suburbs to report strongest increases in median house prices for the year were within a 15- kilometre ring of the city. We live in a consumer generation that is very confident about the future. By comparison, all ten suburbs to report the lowest increases in median house prices were in the outer suburbs, and areas not well serviced by public transport. Some people have only ever known prosperity and don t understand the idea of investing for a bad period. And they don t focus on the reality of buying real estate. Renting fulfils all their needs.

Normally these people have a live for today attitude, which suits the times of this generation and this is why we have this boom situation. Take advantage of the thousands of property listings offered on Australia s largest free online property listing pages, where you can buy, rent an apartment, sell, or house all from the comfort of your own home. If you are ready to rent you will find a selection of houses, and apartments for rent, all located in Victoria when you go to OzFreeOnline. com. Generation X s and young Generation Y s are making the inner city and surrounding areas more attractive to property investors. Consequently, you have many people staying in the rental market. Perhaps this is because some renters don t want to be drawn into holding down a loan.

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Now, You Don T Have Any Reason Not To Enjoy Living In Mexico - Finance and Real Estate Articles:

Before you decide to make any Real Estate Investment in Mexico, there are few important things you need to take care of. Foreigners interested in buying Real Estate in Mexico have to understand that they can acquire rights over real estate investments in Mexico- both in the coastal and in the border zones through a trust, which is a legal instrument very similar to those commonly used in the United States of America.

Foreclosure Listing Services Provide Information Various Ways - Finance and Real Estate:

Without knowing foreclosing listings, one cannot understand what it is. Looking at foreclosure listings for a repossessed property will make the search simple.

Learning How To Read Home Listings To Match Your Needs Can Really Help - Finance and Real Estate Blog:

Sorting through classified ads, online real estate sites and even real estate listings on company web sites can be difficult.

Renters Have An Important Decision To Make, If They Ever Plan To Own A House

Category: Finance, Real Estate.

Renters have an important decision to make, if they ever plan to own a house. The hefty rises in rents over the last 12 months were an adjustment to five years of low rental increases.

Right now, it is the tightest rental market in about 20 years. In real terms( taking into account inflation) , rents are only up about 5% to 6% on where they were in 200However, particularly in the, rents inner city, will increase for the next three years, until the next wave of new tower apartments are available for occupation. Real estate agents agree that what is happening in the market at the moment is making up for an incredibly slow five years of rental growth. Therefore, hopeful renters who want to purchase a home must not give up, because the situation shall improve. It wasn t long ago landlords had to offer white goods and even furniture, to entice tenants to lease their properties. If you begin your search through the internet you are bound to find many properties available, however OzFreeOnline. com will assist you to save time and money finding the property you want.

Searching online for rental properties and homes to buy, is the most convenient and comfortable way to seek out your new home. Whether you are looking at buying, or selling property, renting, you can do it all on this site, logging in and, just by registering then submitting all your details. How much they can afford to borrow. In the meantime, renters wanting to buy should assess what they want to spend. And whether they can do so while continuing to rent. Prospective buyers should use this time to get into healthier savings habits, which will help them get, a mortgage, and better manage. A smart saving plan is the solution for renters who want to stay in the market.

Renters, who want to buy, must save any money they can, rather than save nothing. Unlike other places around the world, home ownership in Australia has always been linked to compulsory savings. Even if they put away$ 20 to$ 30 per week, they develop a savings habit and when the time comes to borrow money, banks look very carefully at banking records. People know every month they need to find on an average, say$ 1700, and they find it at the expense of the other treats.

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Anyone Could Practically Make Money Selling Real Estate - Araceli Maliszewski about Finance and Real Estate:

Many investors today have been looking in different areas to invest in.

Check Out Eight Reasons To Love Lago Vista, Texas - Tabatha Heise's Finance and Real Estate blog:

On the north side of Lake Travis, just northwest of Austin, is Lago Vista. As other areas around Lake Travis become more developed, Lago Vista is looking more and more attractive.

Finding The Perfect Home - Melody Antilla about Finance and Real Estate:

Purchasing a new Florida home can be a fun and exciting process.

Abandoned Property Investments Are Money Spinning, Yet Little Known Fragments Of The Real Estate Market

Category: Finance, Real Estate.

Abandoned property investments are money spinning, yet little known fragments of the real estate market. It just means that no one works or lives there anymore.

Abandoned properties in reality are not actually abandoned. So you may find such property with weeds around or with taxes accruing and sometimes with leaks. The longer the house is abandoned, the better the prospect you have of minting money. You may find such properties even when the real estate market is down, so start by driving down and finding such homes. Whether the real estate market is booming or not. After this, have a talk with the neighbors, as they are the best to provide complete information about the property. Once you locate such an abandoned home, take a peek inside and if the interior looks really abandoned then that is prime property!

Generally they are very helpful, as seeing an abandoned house in the vicinity is an eyesore and they would really love to see it restored. They carry lots of information about the previous owner. To confirm whether the house is really abandoned and to know more details about the owners, check the mailboxes. Dont remove anything as its illegal and from the information provided, you can check details. Dont worry as the tenants are great resources for finding out what is really wrong with the house since they have lived there. Most of the time, you might get information on the tenant and not the house owner. You can then try locating the owner through the phone book or Internet, as they would be really happy to find a solution for their abandoned property.

Be friendly and listen to all the owners have to say. While dealing with the owner be clear and show your interest as an investor who wishes to buy properties and relocate in that area as this might get them interested. If they sound open, put forward your offer and if they find it interesting they may continue negotiations or they may quote. If everything goes well the deal may click. If their quote is more than yours, then you can talk about the meeting that you had with the previous tenant with regards to the various repairs needed in the home. Flipping houses always generates money even when the market is not booming, but you must be very careful and take time and conduct thorough research before clicking the deal.

There are quite a lot of reasons why these properties are preferred in conventional financing. When you deal in abandoned properties, you are free to use the various financing modes. While buying such abandoned properties, rarely does the seller ask your credit report. After all what does the seller lose? Generally the seller is open to innovative strategies, as they will help him to get rid of his abandoned assets. The property is anyhow not generating any money. Bearing taxes and insurances is really dreadful and when a property is left abandoned, it is subject to wreckage and he has to shell out money constantly to avoid it from complete deterioration.

Some sellers are happy to deal when they have a mortgage attached to the home.

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Even Though There Are Several Ways That You Can Buy A Home, Pre- Foreclosure Is One Of The Best - Finance and Real Estate Articles:

What is a Pre- Foreclosure?

More So Than Other American City - Finance and Real Estate Articles:

I would imagine that at some point soon, the Treasury Department and the Federal Reserve will start receiving thank- you notes from New York City realtors: The falling dollar has made New York apartments an incredible value for those that earn their salaries in currencies other than the US dollar. And when a currency called the loonie by its countrymen is worth more than the good ol greenback, you know things have changed.

First, If You Buy Mexico Real Estate, No Matter If It Is Vacant Land, A Condo Or, An Apartment A House, It Can Offer Good Monetary Value In Comparison To The Prices Of Comparable Land Or Buildings In The U - Finance and Real Estate:

If you have been considering the possibility of purchasing some Mexico Real Estate, whether it is in the form of land or in the form of property in Mexico, there are a few things you should definitely know before you decide to buy. S. , Canada and Europe, as well as other countries around the globe.

So Should A Borrower Use A Hard Money Lender

Category: Finance, Real Estate.

I recently attended a real estate investment seminar in Las Vegas.

Even though it has been around for almost a hundred years now, I was amazed how hard money lenders still seem to be mysterious to many investors. Between speeches by different" gurus" I would mingle with other investors and explain that I owned a hard money brokerage firm. They either did not understand how the hard money lending industry worked or had heard that it was something they should avoid like the plague. The most common projects are house flipping, but they are also used in commercial construction and land development. To put it simply, hard money loans are short term loans that are used for various real estate projects. Essentially, a hard money loan is often the best choice for money that is needed on a short term basis. The loans are generally short term between 6 and 12 months and have a high, interest only payment generally between 10% and 14% Another major difference between a hard money loan and a conventional loan is that a hard money loan is not based on a persons credit but instead on the value of the project after its completion.

Unlike conventional financing, a hard money loan also known as a private loan originates from a private individual or institution unlike a bank. A good example is if John has a house that he wishes to rehab and sell for$ 100, 0000 a hard money lender will lend up to$ 65, 000This is what is known as Loan to Value or LTV. Now you are probably asking yourself what the catch is, how do these lenders make there money? Most hard money lenders lend anywhere from 55% to 70% LTV depending upon what type of project the borrower has. Hard money lenders make there money 3 different ways. These are anywhere from 1 to 4 percentage points of the overall loan.

The first way they make there money is the closing costs. These points are paid when the loan is completely paid off in full. The third way they make there money is if the borrower happens to default on the loan. The second way they make there money is the interest only monthly payments on the loan which is anywhere from 10% to 14% . Being as the loan is not based on the person s credit, hard money loans are secured by the property itself. However, it should be stated that this rarely occurs as most hard money lenders are not in the business of foreclosing on properties. If a borrower defaults, the hard money lender now has a property or piece of land for 65% of what it is worth.

So should a borrower use a hard money lender? The simple answer is if a borrower has a real estate project that needs short term financing that a conventional bank will not lend on, yes.

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Pembroke Pines Real Estate Is Coming Back - Finance and Real Estate:

Located in the Southern Broward County 15 miles from downtown Miami and Fort Lauderdale is the city of Pembroke Pines.

Moving Arrangements Should Be Made As Far In Advance As Possible - Lakisha Sublette's Finance and Real Estate blog:

There are many reasons people have for moving to a different location. Just as there are many reasons to relocate, there are also many types of moving including local, national and international, regional.

Have The Terms Of Your Loan Agreement Reviewed And Any Agreements A Lender Offers You - Finance and Real Estate:

Foreclosure and deficiency judgments often go hand- in- hand after the loss of a home through foreclosure.

ORGANIZE A HOME INSPECTION

Category: Finance, Real Estate.

The questions surrounding house purchasing can raise endlessly no matter whether you ve spent years on saving and preparing to buy a home or feeling unsure whether you can afford it or not. The first step of all is finding professional help in pursuing your dream house and adjusting your financial expectation.

Here are some tips to help you become your own landlord: Employ a specialized real estate. When working with a buyer agent is worth consideration since he or she would be legally responsible for on behalf of the buyer s interest in a real estate contract. A dissimilar of constant half a percentage can indicate huge investments more than the life of a loan. LOOK FOR MORTGAGE RATES AND TERMS. For instance. If more than 30 years, that s$ 12, 60 PREQUALIFY FOR A LOAN. The difference in the monthly payment on a$ 100, 000 mortgage at 8 percent vs. 5 percent would be$ 35 for each month.

Trying to get pre- qualified will determine how much you can afford. It as well points out to the seller you are serious and can really afford to buy the land. It allows you to move promptly when you have found your right home, particularly when there are several interested buyers. Describe WHAT YOU Want. Make a list: One for the items you can t live without and one for the features you would enjoy. Creating a realistic idea of the property you would want to buy is the next step.

Process this list as you go house hunting. Your real estate professional can show you houses which possibly will meet your expectations. It is also accommodates you when you try to explore online to see what is currently presented on the market. IDENTIFYING THE FEATURES THAT CAN assist OR damage RESALE. In neighborhoods with two cars, a single, connected garages- car or separated garage might impact the home sale and future value. In certain areas, having as swimming pool in fact detracts a home s rate making it harder to put on the market.

RATE THE HOUSES YOU TOUR. Develop a rating system which will help you narrow it all down. After touring each houses, do list down what you like and what you don t. For instance, pick the house that you like best on the first day and compare to the other houses. ORGANIZE A HOME INSPECTION. Once you find a better one, use that favorite new house as the standard.

After the offer is established, set up a home inspection. Your real estate professional be able to assist finding you a highly regarded inspector and will negotiate to get most for your money once the inspector s report is finalized. It s definitely ordinary to discover problems like leaky roofs, cracked walls and foundation problems. If your negotiations include repairs as part of the purchase, inquire for a" walk through" before confirming the paperwork. Finally, before your closing date, be sure you ve made each and every one the essential deposits and completed the paperwork together with mortgage, homeowners insurance as, title well as any other paperwork compulsory by the local or state governments. Ask your real estate about home protection plan which may save your money in the nearer future.

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Recording Fees - Jackie Leleux's Finance and Real Estate blog:

When closing on a property. be sure to take a good look at your HUD- 1 or closing statement. Some legitimate fees would be listed as: Origination Fee- Some people consider this a" junk fee" .however, most lenders charge it. but it should never exceed 1% of the loan amount.

Discovering Your Dream Apartment Can Be A Daunting Task - Finance and Real Estate:

Relocation is a difficult task for any individual.

So What If You Have A Second Home- Will You Be Liable For Property Tax On That - Jacklyn Snape about Finance and Real Estate:

Although it s a bit easier now than it used to be, what complicates matters is the number of laws that dictate what you can and can t do.

Then Compare This To What Appears To Be Happening In The Marketplace

Category: Finance, Real Estate.

History has a habit of making fools of all economists. So how do you actually estimate when is a good time to get into the market and what a good rate is?

If you were to go back through newspapers from a number of years ago and read any of the predictions by economists about interest rates, you ll find that most of them finished up looking reasonably foolish in the longer term and extremely foolish in the short- term. Well, the truth of the matter is that even if you take all of the market indicators into account, there is no actual way of determining beyond any reasonable doubt what way the market is likely to go over a given period of time. Try to map out at best and worst case scenarios in terms of your personal finances and what you can afford. Given this situation, probably the single most important thing that you can do is look at it from the perspective of your own personal finances. Then compare this to what appears to be happening in the marketplace. The truth of the matter is that if you make a mistake and buy a house at the worst possible time and then interest rates also go up, if you have bought well within what you can afford you will still be able to stay in the market, keep your home and ultimately you will come out the winner over the longer term. Once you ve done this and you can reasonably say that you would be able to weather the storm even if your worst- case scenario came to pass then this leaves you in an extremely stable position to enter the market.

This is not to say that you should just completely ignore market and interest- rate trends. The last thing you want to do is get into a scenario where you can only afford to keep the house you have bought if interest rates stay the same and the market works favorably for you. You should do everything possible to take them into account but the information must be fed through the mechanism of your own financial situation. This is not a set of circumstances under which it is a good idea to buy a house. So, once you ve bought a house that you can afford even if things don t go to your liking you will be able to keep your home and then if circumstances do actually conspire favorably, you have left yourself in the best possible situation but if things go the other direction at least you ll be able to stay in the game and this is the single most important factor over the longer term. Therefore, while you should always take interest- rate and market trends into account, the single most important thing that all of your decisions need to be informed by is your personal financial circumstances. Interest- rate fluctuations and trends are important but they re not as important as making sure that you keep yourself in a financially stable position even when the market doesn t suit you.

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Yes, A ONE- SQUARE INCH PARCEL Of New York State Or Any/ All States In The USA - Myra Cowboy's Finance and Real Estate blog:

"If you can make it there you can make it anywhere, " so the song says.

In Summary, I Am Not Saying You Have To Buy In A Bad Neighborhood - Finance and Real Estate Articles:

When people call me, typically one of the first requests they make is for a house in a" nice" neighborhood.

Owning A Home Can Be Difficult At Times - Kelsey Overholt about Finance and Real Estate:

Like many financial decisions their are pros and cons of moving into the real estate market.

There Is A Lot Out There On Foreclosures

Category: Finance, Real Estate.

Every time you turn around, the word" foreclosure" is all over the news!

There is a lot out there on foreclosures. So, if you re a homebuyer looking to buy a foreclosure property or an investor wanting to learn how to invest in foreclosure property, then you re timing couldn t be better! From how to stop your own foreclosure to how to" get the deed" . But. none of that matters unless you know how to FIND FORECLOSURES. You could probably go to a different foreclosure seminar every other night for a month to learn the tips, tricks and tactics. It doesn t matter how you negotiate with homeowners, what you say to the banks, or what paperwork you need to have if you don t find the foreclosures first.

This is NOT the same as" pre- foreclosure" . We define 4 marketing stages during which you can find foreclosures: "pre" pre- foreclosure, pre- foreclosure, bank owned real, foreclosure auction property( after the foreclosure) "pre" pre- foreclosure: This is the one that most people are confused about! This is BEFORE the foreclosure ever even begins. Properties you can find at this stage are" gold" because the homeowners aren t yet being bombarded by foreclosure investors. It s the time during which the homeowner realized he/ she is going to be late on payments- or is even a couple of months behind- and the point at which the bank starts the formal foreclosure process. Finding pre- foreclosure sellers here takes a little more creativity and ingenuity. Pre- foreclosure: This is the" hotspot" for investors.

This is where marketing and advertising play a huge role as well as networking. This is when people are getting hundreds of letters and postcards from hungry foreclosure investors. The key to finding foreclosure properties at this stage is consistency and persistence. This stage can last several weeks to several months or even longer. There are a number of strategies that you can use at this time ranging from door knocking to a sequential foreclosure mailing and anything in between. This is not recommended for home buyers simply looking for a great deal on a foreclosure property nor do we recommend it for an investor unless you are quite advanced and have a good team working with you because there are a lot of considerations that could wind up costing you money if you re not careful.

Foreclosure: We define this stage as the" auction" ; the actual sale at the courthouse. Real Estate Owned( Bank Owned) Foreclosures: Foreclosure properties reach this stage when nobody purchases the home during the first 3 phases and the bank takes it back. You will need a good Realtor that knows how to handle the banks to help you here, but you can find foreclosure deals well below market value here. There are lots of good deals to be had once the bank takes back the foreclosed property. Each of these 4 stages of provides great opportunities for finding foreclosures. Depending on where they are in the foreclosure process will determine how you will locate the sellers, how you will market to them, and how you negotiate the deal.

In Fact I Would Prefer That They Had A Buyers Agent

Category: Finance, Real Estate.

More times than I can remember I had a buyer interested in a property think that I would be thrilled when I found out they didn t have a buyers agents.

In fact I would prefer that they had a buyers agent. I m not excited. Here are the reasons why: 1) Liability- There is more liability for me if the buyer doesn t have a buyers agent. But without a buyers agent, there is still a greater chance that the buyers won t understand aspects of their new home. While some agents prey on unrepresented buyers knowing that they don t deal with home transactions on a full time basis, I don t think that is the best way to do business. And unrepresented buyers are more likely to be miss important details that they will get angry about later on. 2) Workload- Dealing with another agent lowers the workload on me substantially. When I have to deal with an unrepresented buyer, I have to spend a lot of time explaining the process to them.

I am dealing with someone that knows the contract process and the expected behavior. It s more difficult because unlike my seller the buyer typically doesn t trust me because I am working for the seller. So I usually end up spending much more time explaining the process to a wary buyer, especially when he/ she bought a house in a different state or has not bought a property in a few years. And because some listing agents prey on unrepresented buyers, it makes sense they don t trust me. In this case, any differences between what I am doing and what they experienced previously are met with suspicion. 3) Likelihood of the Deal working Out- In my experience, deals with unrepresented buyers are much less likely to work out. Unrepresented buyers typically get a list from an inspector and become overwhelmed and back out of the contract.

During the inspection a good buyers agent can explain the difference between serious issues that need to be fixed vs issues that are normal. Or they expect the seller to fix everything on the inspectors list because they don t understand what is important. So when I get two offers for the same price I usually tell my seller that the offer with the buyers agent is more likely to end up closing. And in this case, the seller usually refuses and the deal falls apart. The obvious question is why don t I favor the offer without a buyers agent considering I will make more money? So it s generally better for me and my client to accept an offer with an experienced buyers agent working on the other side of the transaction.

While this is true, my view is that I will have to do substantially more work, and the deal, with more liability is more likely to fall apart, meaning I did all this work for nothing and I am back where I started out- a house on the market with no offer.

Moving On To The Duplex

Category: Finance, Real Estate.

There is a lot of talk about getting your first house.

But maybe someone's first house should instead be a duplex. Its part of the American Dream to get a house and maybe get a dog named Rover. Why would I propose such a thing. No their are simply to many advantages to buying a duplex first. Is it possible I am a secret russian spy that hates American pie. Buying a duplex has a number of financial advantages over buying a house.

This is rarely the case. Alot of people assume that in a particular neighborhood duplexes would sell for about twice of what a house sells for. Duplexes are more frequently about 5 times the price of a house in a given subdivision. So lets compare the two. So to pick an easy number if a house is selling for 100k then a duplex should be selling for 150k. To keep things the same lets assume we have 20k to put down and we are looking in the Austin real estate market so that the taxes are. 025 percent of the purchase price and insurance is. 004 percent of the purchase price. - Lower Monthly Payment.

For the house we are going to have a 5 percent interest rate. 100k house price. 20k down payment. To start off with lets look at the house. Monthly Payment= $7432. Since duplexes usually have higher interest rates we are going to assume a 7 percent interest rate. Moving on to the duplex. We are also going to assume that the other side of the duplex is being rented for$ 65 150k duplex price. 20k down payment. Rent Payment minus 5 percent vacancy= $6150.

Monthly Payment= $11818. Monthly Payment minus rent= $5668. You might get different numbers based on your area. The monthly payment on the duplex comes out to be 38% less than on a house. In most areas a duplex leads to a lower monthly payment but there are a few real estate markets where the opposite is true. - Increasing Your Future Real Estate Purchasing Power. Buying a duplex first allows you to make additional purchases while buying a house first can negate your ability to buy additional properties. Besides the advantages due to a lower mortgage payment there is another advantage over buying a duplex first.

To understand why this is the case we need to understand a few rules about how banks determine whether or not to provide loans. So if a buyer first buys a house and then wants to buy a fully rented duplex they will need to be able to qualify for the full price of the house and the duplex combined. When you are purchasing your first investment property banks will usually not count the rent as income unless you have owned investment properties for over 2 years. This can be difficult for someone in the beginning stages of their career. Another interesting way to look at it is that if instead of simply spending the saving you incurred by owning a duplex if you were to pay off your mortgage faster. If a buyer first purchases a duplex first in 2 years when they are looking for a house they can count the rent from the duplex as income which can help them qualify for the house purchase. - Faster Payoff. So if you applied 7432 to your house it would take 30 years to payoff.

So in 15 years you would have a$ 150k duplex paid off instead of a$ 100k house partially paid off. - Greater Benefits of Mortgage Payoff. But if you paid your duplex of$ 5668 and then took the additional 1864 and applied it to your mortgage you could pay off your duplex in 15 years. Not only will you pay off your duplex faster but once you paid if off you will be in a better position. Based on the original assumptions( Austin Texas 5 percent tax rate and. 4 insurance rate) you are still making a payment of 2466 a month for taxes and insurance. Once you pay off your house you are living mortgage free but not payment free. In contrast once the duplex is paid off you are not only living in your duplex for free you are actually getting a profit of$ 255 a month.

Some people do not want the hassle of managing a property. Buying a duplex is not for everyone. And our article is not proposing that everyone should buy a duplex. We are simply showing the financial benefits of buying a duplex.