New York City, it’s one heck of a town. Population-wise, it?s the largest in the United States.? Originally known as “New Amsterdam”, the city became “New York” after the English took over in 1664. From 1785 to 1790 it even served as the capital of the United States.? Today the city is a global capital, playing host to the United Nations. But above all else, New York is an icon, a city unlike any other, which may at least partially explain the sheer amount of nicknames the city has acquired: “The Big Apple”, “The City that Never Sleeps”, or even just “The City”. A unique city by definition is going to have a unique history, and from that unique history we are going to find an abundance of historic buildings and locations. Below are just a few. Were we to even attempt to list all of them, it would require a thick book, probably several. (more…)
Archive for December, 2009
Moving Tips
Moving is an incredibly stressful evening in your life but the stress can be minimized by using the following moving tips.
Color Code
Give each room in the house (or each person) a color and have them label their boxes in that color. Then create a code so movers can easily put boxes in the appropriate room.
Number System
Prioritize your boxes and number the ones that contain everyday items with a one. This way you won’t be searching through everything to find the things you need.
Valuables at Hand
Don’t trust your most treasured valuables with strangers. Keep a few boxes of important papers, valuable heirlooms and other items you’d be devastated if you lost with you at all times.
Be Willing to Say Good bye
As you’re packing be honest with yourself, if you don’t use it then get rid of it. Why move stuff you don’t want or need? Create a pile of items you’ll take to a local charity or sell at a garage sale.
Address Labels
Order address labels with your new address and slap them on everything. Remember to inform anyone who bills you of the address change. Stick the address labels on your moving boxes too just so nothing gets lost in the shuffle.
And most importantly, allow yourself some time to unpack and put things away. Don’t create additional stress by having irrational timelines.
Private Mortgage Insurance
If you’re considering purchasing a home or if you have purchased a home you have probably heard the term PMI thrown around. PMI stands for Private Mortgage Insurance but most people simply call it PMI. Not everyone has to pay a PMI, it is typically added to home loans if the borrower doesn’t have at least a 20% down payment on the purchase price.
PMI insurance can vary but the general range is somewhere between half and one percent and is designed to protect the lender in case the borrower defaults. It’s doubtful that the PMI actually does anything to protect the borrower but PMI is an accepted industry practice and isn’t going anywhere soon, so if you don’t have 20% to put down on your home then you’ll have to pay a PMI.
One thing to keep in mind during the course of your loan is the amount of principal you’ve paid. Once you’ve paid off 20% of your home’s assessed value you can approach your lender and ask them to remove the PMI. One would think that this would automatically be figured by your mortgage broker but it’s not so it’s something every mortgage holder with PMI should keep track of as it can save you thousands over the life of your loan.
Winterize your Apartments
If you’re a property owner you may want to winterize your property both as a benefit to you and your tenants.
Caulk Windows
Check the windows for any cracks and air leaks, caulk the cracks and you can save on heating bills, whether you pay them or your tenant does. You can also take solace the fact that you’ll be helping the environment a little bit.
Weather Stripping
Check the weather stripping throughout the house to make sure it’s still in good condition, if not replace it. If you don’t have any, you may want to add some.
Air Filters
Have your air filters changed and cleaned. These are typically supposed to be changed more than once a year, so make sure you or your maintenance crew is on top of it.
Check Outlets
If there is a draft coming from any of the outlets use expanding insulating form inside them or go the extra simple route with childproof covers.
By taking the lead and winterizing your apartment units you may encourage your tenants to do the same which increases efficiency, eases the burden on the environment and reduces bills for one or both parties. If there are winterizing steps that you cannot take as a landlord but would encourage your tenants to do you could send out regular newsletters letting them know what steps they can take. You can’t force your tenants to be as vigilant as you are but you can encourage.
photo credit:?Michel Filion
Subprime Mortgages
There’s been a lot of talk and concern about subprime mortgages and they are partially to blame for the housing crisis in the United States today. But what is a subprime mortgage? Subprime mortgages are home loans that are giving to people with less than optimal credit scores, typically their score is below 620. Credit scores run from 300 to 850 with the majority of people falling into the 600 or 700 range. Those who fall below 620 are considered a higher risk and if a lender decides to give them a loan they’re going to fall into the subprime loan category.
Subprime loans have higher interest rates than typical loans, but that rate can vary dramatically so if you are a subprime candidate then you must do your homework and shop around for the best loan rates and terms available to you.
Some subprime loans come with prepayment penalties and balloon payments, some even have both. It’s the prepayment penalties and balloon payments that are blamed for contributing if not starting the housing crisis. These penalties are almost impossible to deal with for many people, especially those with bad credit, and many homes ended up in foreclosure.
If you’ve got a poor credit score, rather than diving into a subprime loan which could cause you more trouble in the future, work instead to improve your credit score so you’ll be able to qualify for a traditional mortgage.
Buying an Investment Property? Hire an experienced Agent
Buying an investment property on your own can be difficult. If you have experience doing so you may be able to get by. But those who have never purchased an investment property need to realize that professional help is right around the corner. If you hire an experienced agent you will receive all the assistance you could ever need, plus much more. Working with an agent is a great way to get on the right track, while also having somebody who can help you decide what moves to make.
There is no rule that says you have to hire an agent. But there are reasons that not doing so is a bad idea. For instance, you may not be able to find the best investment properties on your own. Along with this, there is a lot of work that goes into a real estate transaction. Do you have the time and knowledge to handle all of the paperwork on your own?
By hiring an experienced real estate agent you will find it easy to buy an investment property with a high level of success. When you do, you will be happy with your decision in long run.
How to find Investment Properties
There is nothing worse than wanting to buy an investment property and finding them hard to come by. This does not happen often, but those who are just getting involved may find it to be true. Fortunately, there are many good ways to find investment properties even when there is a lot of competition.
To start, you can look on your own. Drive through neighborhoods that are of interest to you, scour the internet, and talk to others who may be able to point you in the right direction. By doing all of these things you will eventually find a few investment properties that suit your needs.
What about using a real estate agent? This is a great way to find properties. But don?t just hire any agent; hire one that has experience with investments. This way you can be rest assured of getting the type of service you want and need from start to finish.
It may not always come easy, but soon enough you will be on the right track to finding the perfect investment properties. Who knows, you may find so many that you eventually have to make a decision on what to buy and what to leave behind.
Deciding on Landlord’s Insurance
After owning a small studio apartment for nearly ten years, I recently had it fully renovated and was ready to get new tenants in. When I looked around at the brand new kitchen and bathroom and the furniture that looked nicer than the stuff in my own home, I panicked and rang my insurance company immediately to get landlord’s insurance. It was quite a lot more expensive than I’d anticipated, but I said yes anyway.
Looking back, I’m not sure if it is worth it. The policy I’ve got covers just a few situations, including rent default by the tenant (although usually I’d be able to evict the tenant and use their bond to pay the default rent first); damage caused maliciously be my tenant (always possible, though I hope I can choose better tenants than that) and replacement cover for the contents of the apartment that I own – all that nice new furniture. But the high excesses – for example, if you claim for rent default, the excess is four times the weekly rent, so you have to be claiming for a couple of months to make it worthwhile – mean I’d probably rarely use the policy.
There are bound to be better landlord insurance policies out there. And there are no doubt quite a few which are an even worse deal than mine. But it definitely pays to look into the details before you pay up.
Things to Ask a Mortgage Lender
Too many people who are looking to buy a home spend all their time researching homes and almost no time at all researching mortgage lenders. This can be a huge mistake that could cost you thousands if not tens of thousands throughout the course of your loan. As your mortgage lender the following questions to make sure you’re getting the best loan for you.
- What is the interest rate? This is a question that almost everyone knows to ask a mortgage lender, it’s a key determining factor.
- What is the point situation? How many points will you have to pay, how much are they and what kind are they? This information will also affect the size of your loan.
- What are the closing costs? The closing costs can add thousands onto your loan from the get go.
- Are there prepayment penalties? Prepayment penalties hit in a number of situations, if you refinance, pay off a loan early, or sell a home and you want to avoid them if possible.
- What is the down payment? Some loans require a minimum down payment, and the percentage required can vary drastically. For people without much savings this is critical.
By asking these questions you’ll have a better feel for your loan and be able to get the best loan terms possible.
photo credit:?woodleywonderworks
When Homes For Sale Look Terrible …
This weekend I drove past a house around the corner that was open for inspection. It’s been for sale for quite a few weeks, and as I drive past it every day, I’ve been wondering what it’s like. With friends who are keen to buy in the area, I thought I’d have a look, thinking it would probably be in their price range.
And it was – but that’s where the good news ended. I was really surprised that the estate agent, who has a good reputation in the area, hadn’t been able to persuade the owners (or perhaps there are tenants) to spruce up the house a bit more before opening it for inspection by prospective buyers. There were untidy rooms, and a lot of minor maintenance work like painting, fixing chips in the wall, gardening and various repairs that very obviously needed doing. The agent had lit aromatic candles in every single room, to the point where the mood was no longer romantic, but desperate – I could only guess that the house smelled so bad he needed to do that to cover it up.
While I looked around out of curiosity, several prospective buyers came in the front door. I noticed that none of them actually went all the way through the house and out to the yard – they obviously had seen enough and figured it wasn’t for them. With a bit of imagination, you could see that the house probably had some potential, but it brought home to me how important it is to prepare your home well for sale.
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