Category Archives: Real Estate

US Mortgage Refinancing Activity Rises in Mid-July

Man holding the refinance your mortgage cardThe recent increase in interest rates, along with expectations of further rate hikes, led more people to apply for a mortgage refinance in Utah, California and other states in the U.S., according to the Mortgage Bankers Association (MBA).

The MBA noted that applications in mid-July rose 6.3% from the first week of the month. Its seasonally adjusted index, however, showed that overall volume was 31% lower in the same period of 2016. Still, interest rates were lower during that time.

Average Rates

For those planning to refinance their 30-year fixed-rate mortgages, you can still expect to pay a 4.22% average rate for conforming loan balances of $424,100 or below. On the other hand, mortgage applications for a home purchase rose 7% in mid-July compared to the same time in 2016.

MBA economist Joel Kan said that Treasury yields were lower during the second week of July, amid indicators of weaker inflation and retail sales for the month. Despite an increase in rates, there are good reasons why you should refinance your mortgage.

Refinancing Tips

Mortgage refinancing should not focus on the growth trend of interest rates. Instead, you should base it on the length of time that you intend to keep the mortgage and the property. An advantage of refinancing involves the possibility of securing a lower payment amount and interest rate.

If lower interest rates serve as your reason, keep in mind that you would be extending the term of your mortgage in the process. In some cases, this could require you to pay more due to the longer repayment period.

Mortgage refinancing offers several benefits to borrowers even during increasing rates, provided that you are acutely aware of how to leverage the situation to your advantage. In case, you want to know more, it’s better to seek professional advice for the best strategy.

Multi-Family Real Estate: Should You Invest in It?

Man and woman investing on real estate For investors who are looking for more sources of monthly income, they usually rely on rental property investments. They prefer this tactic because of the slow, but stable increase in the worth of their portfolio. If you’re new to the real estate industry and have already spoken with a multi-family lender, such as Bonneville Multi-family Capital, here are reasons to encourage you to invest:

Costly, But Easy to Fund

For most, if not all, cases, the price to purchase an apartment building will be considerably higher than the price of buying a single family property. This is why most think that getting a loan for a single family home would be easier than raising funds for a million dollar estate. Truth is, it’s easier to get bank approval for a multi-family property instead of an average house.

The reason behind this is that multi-family properties steadily produce a solid monthly cash flow. This is still the case even if the estate has a lot of vacancies or tenants that give late payments.

Growing a Portfolio Doesn’t Take a Lot of Time

For real estate investors who want to develop a huge portfolio filled with rental units, a multi-family property is the best choice. Think about it, getting a 20-unit apartment building is more time efficient and easier compared to buying 20 various single family houses. By choosing the second option, you would have to go through all the hassle of communicating with 20 different sellers and handle 20 house inspections that are in different locations.

Property Management Makes Sense Financially

Some investors prefer to get the assistance of a property management company to manage the daily operations of their rental properties. They will only have to pay the manager some percent of the monthly income their property produces. The tasks of these managers involve searching and evaluating potential tenants, gathering rent payments, maintaining the building and managing evictions.

Just like stocks investment, investing in real estate would require you to employ some tactics. Knowing that it is better to finance a multi-family property compared to single-family homes can help you get started on your investment.

The Characteristics of a Profitable Rental Property

Man and woman looking for a rental property onlineFrom the moment you first decide either to sell your rental property or to invest in one, you have to explore plenty of considerations. This decision can potentially be life changing, which is why you have to make sure to think it through.

Here are some characteristics of a profitable rental property, whether or not you are buying or selling property rentals in North Shore.

Number of Vacancies and Listings

Determine if that certain area has an abnormally high number of listings. For buyers, this might mean that it is not an ideal neighbourhood or it is just because of the seasonal cycle. For sellers, you can try to determine the cause and ask your real estate agent if they have any advice to overcome the dry spell.

They are experts in the industry, and they will know its ins and outs.

Future Developments and Building Permits

The Auckland city district plan will be able to inform you if there are new developments in the location. If there are a lot of new malls, condos and business parks, then it might mean that it is a good growth district.

Public Amenities

You or your future buyer will appreciate it if the neighbourhood has plenty of accessible public amenities. Highlight nearby projected or current public transports, gyms, parks, malls and movie theatres.

Some locations offer plenty of promotional literature to provide you with an idea of places with the perfect mixture of public amenities and properties.

Crime Rate

It is essential that the property you buy or sell is not a criminal hot spot. Check with the police or visit the public library to get precise crime statistics for the neighbourhood. You need to search for petty crimes, vandalism rates, serious crimes and recent activity, whether it has slowed down or are still increasing.

When buying or looking for a rental property, make sure that you maintain realistic expectations. By keeping the above characteristics in mind, you will know what to look for or prepare for.

Clever Tips for Buying a Durable Air Conditioner

Woman turning on the air conditionerBuying an air conditioner may seem like a simple task, but there are some guidelines you will need to follow to make sure you have made the right purchase. Regardless of how strong or attractive an appliance looks, it is crucial to ensure it does not have any defects or inefficiencies that could cost you.

These easy tips can help you ensure you have bought the right item:

Do your research before settling on a product

The market is full of a wide range of products of different models, sizes and prices. Check out the various similar products available and compare their details. Make a final decision based on whether a particular product fits your needs and budget.

Find a reputable dealer

If you are planning to buy an air conditioner in Indiana, take your time to find a trustworthy seller – such as Legacy Heating & Air – before committing to the purchase. Unless you find a genuine seller, you could end up buying a defective product. Read reviews on the dealer to find out the experiences other clients have had with them.

Study the warranty

A reliable air conditioner should be able to last for a reasonable period. Go for a product with the longest warranty so that you can return it to the seller in case the unit starts displaying problems before the warranty period is complete.

Check the product’s cost

While you want to get a product at the most reasonable price, be wary of buying a product that comes too cheap. Too low a price could indicate that the product has problems. But, be careful not to buy any overrated product either. Read all the details on the product before paying for it.

You can get the right air conditioning unit you are looking for if you take the time to do your research. Being keen on the details of the product and the dealer are the best ways to avoid getting a bad deal.

Small Homes for Big Hearts: A Large Home is not Always What You Need

Small HomeA nice, large house with a lawn where the kids can freely run around and play with the pets is the American Dream. It is ideal for big families who need more space, so as not to feel cramped up in their own property.

Sometimes, however, a smaller home is exactly what a family needs. It lets you spend less on the cost of aluminum fencing products, exterior wall painting, and even mortgage. In addition, it enables your household to spend more time together.

Reduced Spending

Residential property owners are all too familiar with taxes and utilities. Owners of large properties, in general, pay more than the owner of a smaller one; large homes use up more air conditioning, heat, and water than smaller ones, after all. The matter of house maintenance — from the gutters to the floors — also costs more for bigger homes.

Living in a smaller house means smaller taxes and mortgage, lower utility bills, and less maintenance costs. Moreover, it means fewer expenses on furnishings, decoration, and, yes, personal belongings.

Increased Quality Time

The average American family consists of three people, more or less. Even when you have around one to three children, a 6-room mansion is not necessary to keep the household comfortable and happy.

As mentioned previously, a smaller house means fewer expenses to worry about and less maintenance work to see to. As such, it encourages social interaction and quality time among the family members.

Moreover, when the time comes to upgrade because your family is expanding, it’s easier to put a smaller home on the market. It is, after all, more affordable than bigger homes.

A big household obviously needs more rooms and a bigger space to feel comfortable in their own home. As an average-sized American household, however, a smaller home might suit your family better. Not only does it reduce your expenses, it also increases your household’s quality time together.

Business Buzz: Why SMSF Owners are Interested in Property Investments

Rental BusinessInvesting is both risky and rewarding decision for a businessman, and there are many ways to invest. More Self Managed Superannuation (SMSF) owners are becoming attracted to the idea of investing in various properties. Here are a few reasons this is quickly becoming a popular trend.

You Can Borrow to Invest

This is one of the best reasons more entrepreneurs are now investing in properties using an SMSF. Buying a property usually requires a large amount and in some cases, the money in a super fund can be sufficient for the planned acquisition. Fortunately, you can keep borrowing for improvements as long as you remain within the limitations of the loan. Sentinel Property Group recommends asking for expert advice before making any financial decision.

You Can Earn

When you invest in a property, you can rent it out to those who need a residential or commercial space. Once you have regular tenants, you can earn a particular amount of additional income every month. The money can also go into your SMSF, which you can use for other investment opportunities.

You Can Reduce Your Capital Gain Tax

It is ideal to use an SMSF for property acquisition because of the lower amount of taxes required for the earnings, as compared to the taxes you will need to pay when you use your own capital. The payment percentage likewise becomes lower when you hold the property for more than a year. Furthermore, when you sell the property whilst the fund is already in pension, you do not have to pay any taxes.

For those who own an SMSF, investing in a property can be a good way to earn more for the fund whilst making and saving money for their retirement. If you have an SMSF and you are interested in investing, check what you would need to do first, as well as the status of your fund. Enlist the help of investment professionals to make sure you are doing things right.

Reminders Before Building a Swimming Pool in Your Property

Swimming Pool in Salt Lake CityHaving your own swimming pool at home means endless opportunities to enjoy without even leaving your property. But different people may have different reasons for building a pool. One thing is for certain, though: you need lots of preparation.

Here are some preparation tips before your pool construction in Salt Lake City.

Decide on Why You Want a Swimming Pool

The most common reason for building a pool on one’s property is personal or family recreation. But there can also be other reasons, such as physical therapy, exercising, a place for entertaining guests, and swimming instruction for water safety. It can be a combination of a few of these reasons. What matters is knowing exactly why you want a pool so you can move on to deciding what kind of pool to build.

Choose a Type of Pool

Talk to your contractor about the type of pool you should build based on your reason for building one. The two most basic types are in-ground pools and above-ground pools. Depending on your contractor’s materials and methods, a lining made of heavy duty vinyl may be laid over the supporting structure. This structure is usually built with steel, wood, aluminum, or some other material. Fiberglass, concrete, or gunite may also be used.

Your contractor will help you decide on the shape and size of the pool. There are more shapes and sizes for in-ground pools as these are usually customizable. As for above-ground pools, sizes and shapes are usually more limited.

Financing Options

You can finance the cost of your new pool. Many banks consider swimming pools as good investments for most properties, so you should definitely ask your bank about your financing options. Interest rates vary from bank to bank, so shop around before deciding on one.

Pools are great investments, particularly in an area where they are more common and therefore expected by most buyers. Talk to a reputable contractor about your pool options.

 

4 Steps to Take Before Building Your Own Home

Home Construction Project in TownsvilleAs you grow older, you’ll start to envision what you want your home to be. Building your dream home can be quite a challenge, but everything will be worth it if you do it carefully. Here are some things you can do to make sure you achieve the dream home you’ve always wanted to build and live at.

Hire the Right Builder

The builder will be the most important professional you will be working with. That’s why you must choose carefully so you can make the right decision and have someone to help you throughout the process. Find a credible home builder that specialises in building Townsville new homes.

Observe the Neighbourhood

Always assume that you will sell your house in the future. This is a good mindset to protect your investment if in case it happens. That being said, you must observe other houses in the neighbourhood and plan your construction with them in mind. Don’t overbuild because you won’t get your money’s worth when it’s time to sell your home.

Consult with a Lawyer

Building a house will cost you a lot, so it’s important to cover your bases before starting the project. Hire a lawyer to review your contract with the builder. This is a worthy investment to prevent losing thousands of dollars if the contract is unclear and risky.

Think of the Future

You don’t build a home with the mindset that you’ll live there only for a few years. You build a home thinking that you’ll be living there for the decades ahead. That’s why you must think about your future plans when creating the layout for it. Think ahead about what you want to happen in the next 5, 10, 15 and 20 years.

These are just some of the things you need to remember before beginning your home construction project. Make sure you are fully prepared financially to handle all the costs that come with building your very own home.

What Constitutes a Good Property Investment?

Real Estate InvestmentIf you’re thinking about investing in commercial property, you might be onto something. This investment is one of the most profitable and safest. However, despite some rosy projections about real estate, you need to look out for certain things before you decide to sign that check. You don’t want to be that person who loses out on a good deal, here’s how you will know your purchase was worth every cent.

Decent Cash on Cash Return

When you purchase real estate, you are taking money out of liquid assets such as bonds, stocks and other similar investments in your portfolio, and putting it in a non-liquid asset. You should at least aim to get decent cash on cash rate of return for the commercial property you buy, says an expert from Sentinelpg.com.au. To achieve this, get pro forma deals and only get properties that generate positive cash flow that result in fair returns. Avoid those that only lead to a negative ROI.

Low-Risk Investment

When you purchase properties, you will always face risk in developing it, land appreciation or depreciation, real estate funds, fixes, add-ons and several others. All these result in a high-risk profile compared to investing in an established cash flow property.

You can’t remove risk, but you can make calculated ones when you choose among properties that you want to add to your portfolio. Due diligence in analysing, testing, reviewing reports and others lower risk and may improve your return on investment.

Doesn’t Need Much Managing and Time

Some properties need a lot of attention, time and managing to make them worth the money, some examples are vacation rentals, poor quality real estate in bad locations and college rentals just to name a few. A nice boring piece of real estate that you rent for as long as possible to tenants that have at least average credit profiles require the least time, making them worthwhile purchases.

Factor in these three to help you make the right choice when it comes to investing in real estate. These enable you to get good value for money.

Resident Managers: Why You Need to Have One

Reasons to have a resident manager in QueenslandRunning a business is no easy task. Imagine running a couple of rental communities. Queensland is the home of management rights businesses that can help you manage your property on your behalf. 

Resortbrokers.com.au says having a resident manager that can monitor the flow (and growth) of your business can give you the benefits and more. 

Here are some of them: 

  1. 24/7 Monitoring

Resident managers stay at the property and live in the property to be able to effectively manage the things happening on a daily basis. Having a resident manager is like keeping an eye on your property (and the tenants) 24/7.

  1. Tenant Screening

There will always be tenants that cause a headache more than the others. A skilled resident manager knows which tenants will cause more problems from those who will not. Payment for rents is made on time. Contracts are properly and legally made. The duration of the rent can be made longer. These are just some of the things a skilled resident manager can offer you and your company. Through them, you can protect your business from avoidable problems.

  1. Issues Are Settled

A simple water interruption problem can be settled even before it gets out of hand. It is the job of the resident manager to handle problems in the property and make sure they are solved to ensure the services offered to your clients.

  1. Legalities Are Taken Care Of

One wrong tenant can cause a string of financial and legal headaches. A reliable resident manager is not only equipped with skills to manage your property, they are also knowledgeable on policies and laws different states possess.

  1. More Time On Your Hands

Having someone looking over your business for you gives you more time to focus on yourself, your family or other business ventures.

This is the ideal situation. Like in every business, problems will arise. The first step to avoiding or minimising such situation is finding a skilled and trustworthy resident manager from the start.