Category Archives: Real Estate

Why is Mortgage better than Rent?

When you take a home on rent, you get to pay the rent per month and at the end of the rental contract, you do not have any powers over the house. This is why mortgage loans are preferred against rent. You can avail these loans easily through any bank. You need to apply for an estimate, which once approved you have your dream house.

You will be paying the monthly payment in this case too, but that is not the rent. It is the monthly installment that you are making pay off the loan and make the home totally yours after the loan tenure is over. This is why mortgage loans are better than taking a house on rent.

These loans are repaid either on a flat monthly installment or on monthly decreasing system. The latter offers you to pay interest on the amount left as loan. Yet another reason to go for mortgage rather than taking a house on rent!

Whether to hire a Real estate agent or not ?

Once you have decided to put your property on the block for sale, another big decision that you will have to take is whether you should hire a real estate agent or should you go all out on your own?

There are valid reasons for taking the either of the routes depending upon the time and money you would want to invest into the sale of your property. If you have the time and are willing to take up the challenge of arranging for the advertising, attending phone calls, showing your house to the prospective buyers and paper work this could be real good learning experience for you.
On the other hand if you don’t want to deal with all these you can hire an agent who would indulge in all the required activities and sell the property for you.

The benefits of hiring a realty agent are generally worth the cost. He can do all the leg work, conduct Multi Search Listings and keep everything updated. A professional realty agent will also be in a position to give you tips on how to improve the value of your house or condo by simple touches like giving a fresh paint to some of your rooms, clearing off the clutter and organizing the loan in order to create a very good first impression.

It takes a lot of pressure and stress off both the buyer and seller to have a helping and guiding hand who is knowledgeable and technically sound with the finer nuances of the business.

Investing in the troubled property

Buying a troubled property is going to be the next big thing in the realty market. Two of the most popular type of such troubled property includes the Foreclosures and The Real estate owned houses.

Profits in such investments are not overnight. Investing in troubled or distressed properties is for investors who can hold on to the property for long periods of time or for those who are into realty flipping strategies. In order to be successful in this type on investing you must locate a property where the mortgage can be covered by the rental income from the same property. Such cash flow arrangements can be achieved by renting out for long term to families or short term lending of the property for vacation rentals and tourists or individuals in transit or companies who would like to own guest houses for their visiting executives.

A little know trade secret is to purchase properties from big time real investors who are into the sale and purchase of bank portfolios. Portfolio purchases are generally are priced lower than the combined market value of all the properties in the portfolio. This helps you in securing a good lower than market value asset from the main purchaser since he has nothing to lose. It’s a kind of win – win situation for both of you.

There is no doubt that money can be made by investing in such troubled properties. But there is no quick and easy solution. Market suggests holding onto the property for a period of around 8-12 years in order to triple or quadruple your profits.

Vacation rental checklist

Assuming that you have already decided upon the location as San Diego and the number of people joining in for the trip, here’s a checklist for finding the property of your choice, liking and comfort.

While deciding upon your stay for vacation rental, it is always prudent to find as to how the members of the party would like to sleep. Some might have privacy issues and that would require multiple rooms for each of them.

Holiday rentals are self catering but that does not mean that they have to be self cooking also. Ensure that you have a restaurant at a walking distance from your stay. An empty stomach, after all, is a big spoilsport.

What type of property are you looking for? Are you looking for a city center property or are you looking for a get away from the city. You can locate a furnished vacation rental for different rates and sizes depending upon your requirements.

Think about all the things that irritated you in your last tour. Ensure that the property that you are looking at is free of all those irritations.

Prioritize your requirements. Some of them might be important and cannot be done away with. Whereas some of them as not as important and can be done away with or substituted with. Finding a was never as easy and smooth as today. Keeping a track of your priorities and proper execution of your planning would ensure that you have a great property to live in.

The vacation rentals

There are many ways in which you can enjoy and experience new things during your vacation. One way to make the most of your hard earned money and hard found time is to enjoy the culture, cuisine and landmarks.

San Diego is such a place of vacation rentals with a dynamic mix of amusement parks, waterfronts and cultural attractions. Vacation rentals is nothing short of dreams filled with fun and frolic. They range from designer boutiques to world class art galleries, from beaches to inter continental restaurants. The Del Mar racetrack that offers horse racings is pretty close to San Diego.

San Diego vacation rental include homes, condos, cottages and luxury villas. The San Diego vacation condo rentals are privately owned and are rented out by their owners or their agents. Each of these properties is also every worth of an investment opportunity if you intend to do that.

In order to have a smooth sailing, it is suggested to work in advance and plan accordingly. By doing so, you will also ensure that every penny that you have spent gets counted for.

Beating the market: Real estate investments

Investment in property is one of the most sought after tools in today financial market place. No other finance and investment tool offers the stability, simplicity and an excellent return as the real estate investment does. And if that investment is in a promising, emerging economy like that South Africa, it adds glitter to the gold. A very distinctive combination of highly developed infrastructure by the first world, availability of minerals and a strong intuitive entrepreneurial streak makes the South Africa Property listings an irresistible venue for investment.

What does this prominent emerging economy hold for the investors?

With 24% of world diamonds and 69% of platinum reserves along with a host of other minerals, the country promises to attract hordes of investments in times to come. With all these happening in the continent it is all but natural for more and more industrialization to take place over there.

Buying property expressly for investment purposes removes the emotional attachment to the property and thus it is looked purely as a vehicle of investment. You can let up your property on rent or on lease to the business companies. Utilizing the services of online portals you can lap up properties like opportunities online. Headings like real estate home for sale by owner should grab your attention. These new world online real estate companies have effectively blurted the geographical boundaries. They tie up at the local level with the property owners and developers and flash any property opportunity sale at their portals. Information on all available property is available on you mouse clicks along with graphical images. A lot of commercial property and South Africa Houses on sale can be found on these online portals. Tailor made customized solutions can be requested. That makes all your homework easy. The investment decision making is the only crucial aspect that must be executed by you. And all this technology is benefiting for both the sellers and the buyers. Once you have the property, your leasing, renting out or decisions on investment are also taken care of. Or simply if you already own your property there, just list them with these guys and analyze the bids. In other words, a business-to-customer and a business-to-business model in efficiently in place for the investors needs.

Do remember that there are many factors to be taken into considerations while planning for your real estate property investments and the capital growth projections do get influenced by a mix of local, national and international factors. Be prudent while investing.

Four Reasons for why you should opt for a re-mortgage

There were days when borrowers would take a mortgage finance loan and stick with it till they repaid the finance in its full tenure. Those days and incidences have now been confined to the books of history. The modern day finance management provides the borrower with the option of re-mortgage.

Reason No. 1

Get yourself a better deal – you deserve it

The mortgage finance market is now immensely competitive and is very aggressive to book new business. There is a possibility of cash back schemes and other value additions like free of charge home insurance

Reason No. 2

Get a low rate

There is an absolute chance that your current mortgage rates are higher than what the re-mortgage could offer you. Take the jump and catch hold of that lowest rate mortgage in the offering.

Reason No. 3

Liberate the equity

With the real estate properties rates zooming so high, a re-mortgage will help is settling your current mortgage loan and provide you with some extra funds.

Reason No. 4

Modify your mortgage type

A mortgage loan that you took years back might not be suiting your lifestyle and spending needs today. Restructure your loan to suit your today’s needs.

Decode the types of mortgage rates

Steering through process of purchasing a home could be scary at times, especially with multiple kinds of mortgage finance rates swimming all around you. It is for this that a good understanding of the mortgage rates will help you in taking a faster and secured home loan decision.

Here’s a small summary of some of the very popular mortgage rates available in the finance industry.

A fixed mortgage rate provides the user with an equated monthly installment. The amount of principal and interest in your EMI remains same all over the tenure of the repayment schedule. Neither the rates fluctuate nor the term. The borrower has a clear idea of his future cash flows and hence can plan accordingly. In an increasing interest rate regime it is recommended to get into a fixed mortgage rate contract.

Adjustable mortgage rates are, as the name suggest, adjusted during the tenure of the loan. The rates are attached to a benchmark index and it moves as the index moves. Such a contract rate is good in a decreasing interest rate regime.

Alternatively if you already own a home and wish to avail some financing out of it, the financing rate is referred to as the refinance rate. The refinance rates usually are higher than the first mortgage rates and have a shorter term than that of other financing and mortgage tools. The good thing is that you can get your home or property to serve as a tool for financing your other fund requirements.

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The home equity loan puzzle

Home loan plans require flexibility and time apart from some money on good interest rates. So while you borrow money through home secured loan route, do ensure that these two attributes are build into your loan structure.

A home equity loan or what is more popularly known as the second mortgage loan is a lending that gets secured by the equity in your home. The equity is defined as the net difference between your proposed borrowing and the market valuation of your property as per the lender norms.

There are two variants of the home equity loan. The first one is the simple home equity loan. It is also referred to as the close ended loan. Here you get a loan in a lump sum amount the repayment of which is spread over a fixed period of time with a fixed equated monthly installment.

The second line is known as the equity line of credit. The sanctioned amount is made available to your use as and when you need it. The interest rates are variable and are charged only for the amount which you have withdrawn or are being used by you.  The entire sanctioned loan amount is not charged the interest. The borrower saves a lot of cash by way of interest savings.

This line of credit is more suited for your home improvement loans whereas the former line of credit (simple equity loan) is better suited for purchase of property/home.

The home purchase checklist

Purchasing a home is one of the decisions that is very close to everyone’s heart, even if it’s an investment decision.

It, hence, become imperative for us to ensure that we are getting into the best deal as per the resources available with us. Here’s some of the must DOs to follow during the decision making process.

Be informed

There are tons of information available on the internet about homes that you might be planning to purchase. So if you are looking for properties in a specific area,  make sure that you have collected all the information related to the real estate prices in that area and as well as surrounding areas of that place.

Familiarize yourself

It would be prudent if you could familiarize yourself with the local rules and regulation and laws and by laws for the area where you want to purchase the property. Say for example you want to purchase properties in Bristol, it would be a good idea to pay a visit to a local attorney in Bristol to see through the law records if there are any disputes or cases running against the property that you have zeroed in.

Decide on the need

What is the objective of purchasing the property must be clearly defined. You could be wishing to purchase flats to rent in Bristol or wishing to purchase flats for self occupancy in Berkshire but having a clear objective on the application of the property will definitely help in your cause.