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Archive for the ‘Money & Finances’ Category

5 Ways to Increase Property Value

March 12th, 2010

Whether you’re a property manager and want to increase the property value to draw a higher class of tenants, or if you’re a homeowner and just want to increase your home’s value for a future resale, the following five tips can help you increase your property value.

Storage

Storage is a key issue for renters, home buyers and homeowners. Improve the storage options on your property by adding more, cleaning them up, or adding compartments that make storage easier.

Make Repairs

Too many homeowners and landlords ignore little repairs and let them slide as they’re not essential but this habit should be avoided and all repairs should be made as promptly as possible.

Curb Appeal

Curb appeal is always essential, make sure your home looks good from the road, whether it’s just a simply lawn cutting or something more complex like intricate landscaping, every home looks better when the lawn and exterior is well cared for.

Safety

Take additional safety steps by adding home security, improved locks, motion detectors and improved lighting.

Clean

Not the typical cleaning where you dust a little and run a vacuum once a week, but thorough regular cleaning will keep everything in the house looking its best and in optimal working order.

New FHA Insurance Fund

March 9th, 2010

New news for homebuyers and sellers, the FHA has announced a plan to secure the solvency of the Insurance Fund. There are a number of ramifications of this plan and some are predicting that the end result will once again be a slow down in the housing market which had just begun to see a little lift in the last year.

One of the big changes that we’ll be seeing is an end to the first time homebuyer tax credit. Not an entirely shocking announcement as this tax credit was so generous it was pretty clear that it would not be permanent.

Another change will be that the government’s purchase of mortgage backed securities will end. In 2008 almost all loans in the secondary market were bought by the government by stepping out of the market, mortgage rates are almost certain to rise, causing a whole slew of repercussions.

To make matters a little bit worse guidelines are being tightened on loans. The goal is to lessen defaults but it will ultimately mean fewer people can purchase a home and the qualifications will be more stringent.

Of course this is just the FHA’s announcement about their plan, it’s not a certainty at this point but it does seem fairly certain that things will go forward.

photo credit:?Kamal H.

Find that Down Payment

February 23rd, 2010

No down payment loans were available a few years ago, but after the housing crash those loans have all but disappeared from the market. Today you’ll probably have to come up with a down payment to prove to the lender that you are serious and do have some finances on your side.

Begin Saving

One way to come up with a down payment is the good old fashioned way of saving. Tuck aside every spare dollar that you can. You’ll need some spare cash after the house is purchased too so this is a good habit to establish.

Borrow from Savings

If you have money tucked away in stocks, a 401K plan or another retirement plan you may want to zap those funds and use them as your down payment.

Public Programs

Look for public programs or governmental assistance that is set up to help homeowners come up with a down payment. There are a number of different programs and you might be surprised at what you qualify for.

Putting up a sizeable down payment means you can borrow less money for the home, you will get a lower interest rate, more mortgage lenders may want your business, you’ll pay less mortgage insurance, and you may be able to totally avoid PMI payments.

photo credit:?faungg

Avoid Real Estate Mistakes

February 15th, 2010

Investing in real estate can be an exciting venture, whether you’re looking to make a mint by flipping houses or if you’re more practical and just want to buy a home for you and your family. But there are also some pitfalls to home ownership, although some of them can be avoided by steering clear of the mistakes listed below.

Real Estate Pipe Dreams

It’s the get rich quick real estate dream that will probably never come true. Real estate is typically a good long term investment. Most people shouldn’t think of real estate as anything but a long term venture.

Paying Too Much

Everyone is looking for a good price when buying a home but some people still pay too much. Learn about the neighborhood, the value of the home and its amenities. Break down the investment as you would a major purchase to make sure you’re getting what you’re paying for.

Falling in Love

Yes you want to love the home you live in but you don’t want your emotions to control your purchase decisions. Try to be as clinical as possible and treat the purchase portion of the deal as a business venture. After that you can let your emotions run wild.

By avoiding the common mistakes above you’re more likely to find a great deal and a home or investment that works for you.

Stay Away from Get Rich Quick Real Estate

February 12th, 2010

There is something about those late night commercials and get rich schemes that is appealing but be wary because they’re just as big of a scam now as they were in the past. Sure the real estate market has changed and it’s easier to find a great deal but the economy isn’t right for many and buying any real estate may be too financially taxing.

Before you buy the sales pitch and toss well earned money at these real estate gurus, remember that few of them (if any) can actually back up their claims. And even if the pitch isn’t entirely a scam, it’s definitely not a no effort, immediate way to roll in the dough.

Buying real estate is typically a good investment, but few people have the time, money and ability to purchase more than one or two homes. Then there is also the time involved with real estate investments. They don’t immediately appreciate over night, typically it takes a long time for real estate to jump in value and quite often you’ll need to make improvements to the property to keep with the times. At the very least there will be maintenance that will drain your finances.

If you’re interested in investing in real estate there are ways to make money, you can make substantial money in fact, but you’re going to have to be willing to invest time learning about the business and the area as well as the property itself and you’ll have to have a significant amount of money to invest in the initial purchase and maintenance.

Three Tips to Finding a Good Deal on a New House

February 8th, 2010

It’s a buyer’s real estate market out there, so if you don’t have a home to sell you may be able to find a killer deal on a new home. But there are still some things you can do to ensure you’re getting the best deal possible.

Look for Old Sales

Houses that sit on the market for more than three months are considered stale. It’s an old adage and really, logically, shouldn’t apply when the market is so slow but it does and it can mean a big deal for you. Look for homes that have been on the market for more than 90 days, the longer the better as the sellers are probably almost willing to accept any reasonable offer. You may find owners who are holding out for a price that is too high for the market, but this is the exception, not the rule.

Find the Discounts

Do the research (or have your realtor do it) and find homes that have already been discounted at least once and for a pretty big chunk. Typically these homes are a burden on the homeowners and paying the mortgage is getting to be too much so they’re looking to make a quick and easy sale.

Come Preapproved

Having a mortgage lender firmly in place and your loan amount preapproved is a big bonus, especially for sellers that are anxious to close the deal quickly. You suddenly are a known quantity and basically a sure thing as long as you’re happy with the inspection. This not only makes you more enticing to the seller but makes the process easier on? you as you know what to expect and how much you can actually afford.

5 Tips for First Time Homebuyers

February 2nd, 2010

Buying a home is a very exciting and equally stressful experience. Going into the process knowing as much as you can about the business and the game can help you get the best deal and the property you want. The following five tips will help you buy your first home.

Do Your Research

Learn the neighborhood and the value of surrounding homes. This information is available through several different online locations, from sites like Zillow.com with comparative home values and local police blotters and predator websites that tell you which areas are more desirable.

Put on Your Poker Face

This is where a little game play comes into the process, don’t let anyone know you’re head over heels in love with the property and will pay just about anything, because if you do then you’ll end up paying top dollar. Keep your emotions to yourself.

Waiting Game

Another aspect of real estate is knowing that values wax and wane and being wise enough to time those trends to get the most bang for your buck.

Understand the Paperwork

Most people rely on a realtor and/or a real estate attorney that will help you wade through the enormous piles of paperwork. Whichever way you go make sure you understand everything that comes your way, and more specifically, everything you sign.

Patience

So much of the home buying process involves waiting and the better you are at waiting the better deal you’ll get and oftentimes you’ll find a better home if you wait and shop carefully.

photo credit:?army.arch

Dividing Property in a Breakup

January 28th, 2010

If you and your non marital partner have decided to go your separate ways there are a lot of issues to consider, the good news is that it should be easier because you are not legally bound by marriage.

If you own property together there are several different ways in which that can be divided. If only one of you has their name on the deed or title then the property is legally theirs, but the other party may have some legal right to it as they have probably contributed to the expenses of maintenance and any upgrades. These disputes can be handled in a court, through arbitration or through your own agreements if you can amicably come to an agreement.

If the two of you owned the property together then it can get more complicated. You can just come to an agreement on your own between the two of you and one can file a quit claim deed which gives the other entire possession of the real estate. But if it’s not that easy then you may need to again see arbitration or a legal judgment that will determine how to divide the property. If both sides have a considerable amount invested in real estate it’s not uncommon to have to sell the property so both parties get their fair share.? photo credit:?alancleaver_2000

Fixing a Bounced Check for Rent

January 26th, 2010

Sometimes it’s just an accident, sometimes you’re skating on the edge and other times you’re writing checks you can’t cash on purpose. Whatever the reason you’ve bounced a rent check you had better make amends immediately or you could end up without a home.

The first step is to tell the landlord of your mistake, believe me your landlord will take it better coming from you than the bank.

The next step is to try to arrange a payment schedule that will work for both of you. If you’re going to have the money in a day or two be sure to let the landlord know and then pay it as soon as you can. If you’re hit hard times you may need some sort of extension, see if your landlord will agree to a written extension.

If you think there will be a problem making the rent payments on time and in full for a while you should talk to your landlord about a possible temporary rent reduction. During this difficult economic time some landlords are having trouble getting tenants so having one that’s already there, proving to be fairly reliable and in need of a small discount in rent might be just fine.

But whatever you do, if you bounce a check to your landlord, don’t ignore the landlord or the situation, it won’t resolve itself.

photo credit:?jurvetson

How to Handle a Bounced Check

January 14th, 2010

Unfortunately it’s a part of being a landlord, but bounced checks happen, and for some they happen quite frequently. There are different rules in each area with how to deal with bounced check, so check your local laws and what tenant resource groups recommend, but the following bounced check tips for landlords may help you get through the process and get the money that is owed you.

Written Notice

Give the tenant written notice that their check has bounced. This can be handled in a number of ways but getting a signature through the postal service is usually the best way as it proves that the mail was received. Include a photocopy of the bounced check with your letter, also let the tenant know how much you have been charged by your bank and that they will be charged those fees as well. Also spell out what steps will be taken if they do not pay in an acceptable or timely manner.

Give Them Time

You can’t expect immediate payment from the tenant, there is typically a couple days leeway between when they see your notice and when they’re expected to make good on the check. Receiving another check does not count as payment until you are certain that check is good.

Still No Payment

If the tenant still hasn’t paid within the grace period then it’s time to take further actions which include beginning eviction proceedings.

photo credit:?Hello Turkey Toe