For many different reasons, most people are eyeing the real estate market right now for potential 2010 purchase. Some people simply want to move their family up to a larger home with less cost, while others are considering going into business flipping houses or taking on additional rental properties.
The year 2010 will bring about many changes in the real estate world. One of the questions you may want to think about is whether or not investing in real estate is a wise decision for you. Here are a few things to consider:
On one hand, this is the perfect time to make a purchase since the value and selling price of homes is set to rise in the future. This means you can buy a new home for your family without its value dropping a short while later. This also means you can pick up a cheap rental house and make higher profits in time, or buy cheap prices to flip for substantial profits.
With the economy still unstable, many more homeowners will find themselves unable to pay their mortgages. It is said that 1 out of every 4 homeowners owe more on their mortgage than their home is worth. With many people losing their jobs, their mortgages will go unpaid and their homes will be lost.
With hundreds of billions of dollars in adjustable rate mortgages set to recast next year, the new payments can end up being more than twice what their original monthly payments have been. This also will see more people losing their homes due to nonpayment of their mortgages.
Another consideration is the expiration of a critical federal program in March. This was a program to help homeowners that allowed the government to purchase debt and mortgage backed securities from Fannie Mae and Freddie Mac. It has kept mortgage rates lower, but when it expires you can expect to see mortgage rates rise back up. Rates could go from 4.88% to 6% easily.
The Department of Housing and Urban Development (HUD) is also considering some other big changes for the real estate market in the upcoming year which might make securing real estate more difficult in the future. For instance, the required credit score could be much higher, you may be required to put down a substantially larger down payment, and insurance premiums could skyrocket.
Finally, consider the value of the tax cuts currently being offered by the federal government. If you purchase your first home (the rules are lax on what \”first\” means) before July, you could receive up to $8,000 in tax breaks. If you decide to purchase a second property, you could receive up to $6,500 in tax breaks. Of course, you want to make sure you can afford your payments long term and not get sucked in by the temptation of this offer.
It is important to keep all of this in mind if you do purchase real estate in the upcoming year, but also be prepared for whatever may happen with the economy. Make sure that you are financially secure and that you can handle whatever changes may be coming in the next year as the economy fits to normalize once again.
Karen Lissack has been reporting about real estate and home related topics for almost 15 years. She will help you with information in any aspect in real estate from buying to selling, even investing. She is fully informed about chapel hill real estate and has aided people in finding the best chapel hill homes the market can offer.
Tags: invest, properties, real estateYou probably already know that it’s difficult, if not impossible, to find a decent rental near the city without having to pay a huge broker’s fee. But if you’re smart and you know this insider’s secret, you can keep that money in your pocket where it belongs.
Ask around and there’s a good chance you’ll get all sorts of ideas on how to avoid paying a broker’s fee. Here are a few of the approaches past urban renters have tried.
The walkabout
Some people claim you can simply walk around the neighborhood where you’d like to live. While on tour, they claim you can look for properties with posted vacancy signs. When you find one you like, you call the number of the building’s property manager and negotiate a deal.
Sounds pretty simple, but you probably won’t make much progress using this method. More often than not, the person you talk to will refer you back to a broker.
The stealth approach
Others will tell you to deal with the broker—in the beginning—and after you’re taken to a property you’re interested in, you ditch the broker. They claim that with a bit of sleuthing, you can learn the name of the landlord/building manager and then approach him directly to negotiate your best deal.
Again, this sounds good, but there a few problems. First, smart brokers make you sign a contract stating that you agree to pay a fee if you end up renting a unit that the broker showed you. Once you sign something like this, you’re legally bound to pay the fee! Even if the landlord did rent to you without a broker’s knowledge, the broker likely would find out and insist that someone pay their fee.
There are other approaches, but chances are they’re illegal, unethical, or simply not feasible. Let’s face it; brokers are in the business to make money. The ones with experience know all the tricks and know what it takes to get the fees they’ve negotiated.
So what’s the secret?
All you have to do is find a full-service real estate company (www.jysonproperties.com) that gets paid by property owners or landlords rather than tenants.
See, property owners have just as great a stake in finding the right tenants as you have in finding the right rental property. And many are willing to pay to make sure that happens.
It’s legal, it’s simple, and it works.
What will you do with all that extra money?
With broker fees equal to several months’ rent or some insane percentage of the annual rent, you could easily save thousands of dollars. That’s a lot of money to pay a broker who does little more than give you forms to fill out and show you a few properties.
Instead of paying a broker, why not put that money towards your security deposit or buy new furniture. Or maybe you could throw one heck of a moving in party!
Tags: apartments, home, propertiesReal estate properties in India; the perfect location for you to settle personally and professionally
Buying a real estate property in India is no more easy and simple as it was some years back. Now in actuality, there is a crisis for the land, be it for the commercial purpose or the residential use. And what has led to this crisis, is the beautiful exotic locations of India; well supported by the good rail and other transport facilities, good administration etc. Also the fact is that India has truly become the ultimate destination of almost all the major national and international companies, have also contributed enabling the commercial properties to catch the attention of the business oriented people from all over the world. As a result, most of the affluent businessmen from across the globe want to establish their business base here or at least set up a branch of their organization. Not only the commercial, but the residential properties of India are also famous, for its culture, tradition, work environment etc. Together they have led to the increase in the demand for the commercial properties as well as the residential properties, resulting in their price hike.
Thus if you too want to buy a real estate property in India, then it is absolutely a good idea. This is because India’s real estate sector have been flourishing and growing by leaps and bounds. And thus it is indeed the best way to invest money and moreover buying of such a space will also give you a sound financial security. However, keeping in mind the ever increasing demand for the commercial and residential properties in almost every major part of the country, if you have any such plans, then you must execute your ideas as soon as possible. Because the latest trend shows that the prices of the real estate sector have been increasing day by day. So the sooner you buy the more you will save.
Tags: properties, real estate
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