The Ultimate Beginner’s Guide to House Flipping

A fixer-upper can be an opportunity to make some extra money if you know how to invest wisely. If you’re considering house flipping, there are plenty of crucial things to understand before you begin the process. From your specific market to making significant upgrades, every house flipping element plays a role in your final asking price. Read on to learn more about house flipping and how you can use it to your advantage. What is House Flipping? The term “house flipping” refers to buying a home with a short holding period, with the intent to resell it quickly. Unlike buying real estate as a long-term investment, house flipping is a short-term way to make some money after your initial investment. These short-term real estate transactions can allow you to leverage your asset to make a bit of money once the flip is complete. Most investors buy homes that require some updates and repairs at a low cost. The idea is to “buy low” and then “sell high” later after making a few changes, and you’re ready to put the home back on the market. It’s important to note that there are no guarantees with house flipping since the real estate market can fluctuate widely. How to Get Started If you want to get started with house flipping, there are some crucial things to keep in mind. Each of these items should be part of your house flipping endeavor so that you’re positive you are making a wise investment. Start the process by doing extensive research on the national and local housing market. Ask a real estate agent to provide you with some comps or comparable prices of homes in the recently sold area. You’ll also want to find out what buyers in your area are looking for in square footage, upgrades, and more. This research is vital to ensure you make a wise investment decision and buy a home that will sell quickly. Budget your house flipping plan so that you don’t end up paying too much for a property. Set a limit for how much you’re willing to pay, and never go over that amount when offering. Don’t forget to consider the budget for renovations and upgrades as part of your complete budgeting plan. It’s essential to find a home at the right price, so you know you’ll get the best investment return. Consider hiring a home inspector who can help you assess the necessary repairs the property might need. A thorough inspection will make it easier for you to determine the total repair costs before you make an offer. Once you have a better idea of your proposed asking price, you can subtract the home’s cost and all of the repairs and upgrades. The final number will be your bottom line and show you what you’ll gain financially once the flipped home is sold. The House Flipping 70% Rule Use the 70% rule of real estate investing to guide you when looking for homes to flip. This rule states that you should not pay more than 70% for the house after the repair value, minus all repair costs. The ARV (after repair value) refers to the estimated value of the property after all of the necessary repairs are complete. Let’s say the home has an ARV of $100,000 and requires $25,000 worth of repairs. The house flipping 70% rule would suggest that you pay approximately $45,000 for the home. This leaves you with 30% “wiggle room” to pay for miscellaneous repairs and other costs if needed, and it also accounts for the amount of money you’ll receive once it’s sold. Here’s a simple formula to help you see how this figure is calculated: ARV of $100,000 x 70% = $70,000 – $25,000 = $45,000 The Importance of Ceiling Value When you’re ready to sell a flipped home, it’s crucial to understand the ceiling value. This term refers to a maximum asking price that you can put on the house, and state or local governments often mandate it. If you ask for too much, the home could sit for a long time, making some buyers hesitant to put in an offer. Talk to an experienced real estate agent to help you determine a fair market value for the home. Feel free to start by listing the house for a bit more, since you can always negotiate the final price down with a potential buyer later. Structural Improvements to Consider Even if the home appears to be in decent shape, there are a few key upgrades you should take into consideration. If the home has old knob and tube wiring, a full electrical upgrade is advised. Inspect the plumbing and look for signs of rust or wear. Insulation should be in good condition, and the home should feel comfortable when the HVAC system is running. The roof should appear in good condition with no leaks or missing shingles. Take a closer look at the home’s main components first to determine if these improvements are necessary. Room by Room Renovation Guide Inspect every room of the home you’re planning to flip to determine what types of renovations they’ll need. Each part of the house may require some updating and improvements to get a better asking price. Façade: Paint the outside of the home or add new siding to give it better curb appeal. Cut down dead tree branches, lay down a fresh coating of grass seed, and update the landscaping to make the entrance more appealing. Fix any broken outdoor lighting or replace dead bulbs. Paint the front door a bold color to give the property an updated look. Bathrooms: Update the flooring and fixtures in the bathroom to make it look fresh and new. Make sure all plumbing is working correctly and that there are no signs of leaks. A simple tile job around the shower or tub can be an inexpensive yet significant improvement. Living Room: A fresh coat of paint and new flooring can quickly transform an outdated living room. If the home is “broken up” into several separate rooms, consider knocking down a wall to create a more open floor plan. Extend the windows and make them oversized to allow for more natural light. Kitchen: Replace outdated appliances with new stainless steel ones and consider updating old countertops to a solid surface like quartz or granite. You can repaint older kitchen cabinets to save money unless they’re broken or in disrepair. Garden: Check for pests’ signs and remove all weeds and dead plants from a garden area. Plant new flowers or shrubbery around the home to give it a fresh, lively aesthetic. Bedrooms: It’s easy to update bedrooms with new paint colors and new floors. A fresh coat of paint can do wonders for a bedroom. If the master closet is small, considering altering the layout to accommodate a larger closet. Laundry: Re-tile the laundry room and install a new washer and dryer if your budget allows. Install a sink in this room to make it more functional. Addition or Extension: If you have a larger budget, consider adding an extension to the home. This upgrade will be more costly and time-consuming, but it should also allow you to get a much higher asking price. Adding the Most Value Today’s modern homebuyers are looking for unique properties. If you want to add the most value to your house flip, make some current updates that will appeal to younger buyers. A glass railing along a staircase is a unique and modern choice that replaces the standard spindle design. High-tech upgrades like remote security cameras or doorbell alarm cameras are easy and affordable upgrades. Replace an old garage door with something sleek and contemporary. Energy-efficient windows will make the entire home look new, and it’s also a great incentive for buyers. Pay attention to the outside and install a new covered patio or deck. Many buyers enjoy spending time outdoors, so this is a great way to get more value for your flip. Selling the Flip Once your property is updated, it’s time to put it on the market. Enlist the help of an experienced, qualified real estate agent who is familiar with your local market. Check your listing to ensure that it has all of the home’s details, including the square footage, special features, and significant upgrades. Hire a professional photographer to take clear, detailed pictures of every room, including the home and the outside. With the right marketing plan in place, you can quickly sell your newly flipped home for a great return. The process of house flipping isn’t for everyone, but it can be a smart investment choice if you have the know-how. Get to know your local real estate market and partner with professionals you can trust. Always stick to a budget when flipping houses, so you don’t end up paying too much. With the right updates in every room, it’s easy to quickly flip a house to get a great ROI.
Home renovation, repair and construction: isometric model house and tools with copy space

A fixer-upper can be an opportunity to make some extra money if you know how to invest wisely. If you’re considering house flipping, there are plenty of crucial things to understand before you begin the process. From your specific market to making significant upgrades, every house flipping element plays a role in your final asking price. Read on to learn more about house flipping and how you can use it to your advantage.

What is House Flipping?

The term “house flipping” refers to buying a home with a short holding period, with the intent to resell it quickly. Unlike buying real estate as a long-term investment, house flipping is a short-term way to make some money after your initial investment. These short-term real estate transactions can allow you to leverage your asset to make a bit of money once the flip is complete. Most investors buy homes that require some updates and repairs at a low cost. The idea is to “buy low” and then “sell high” later after making a few changes, and you’re ready to put the home back on the market. It’s important to note that there are no guarantees with house flipping since the real estate market can fluctuate widely.

How to Get Started

If you want to get started with house flipping, there are some crucial things to keep in mind. Each of these items should be part of your house flipping endeavor so that you’re positive you are making a wise investment.

  •   Start the process by doing extensive research on the national and local housing market. Ask a real estate agent to provide you with some comps or comparable prices of homes in the recently sold area. You’ll also want to find out what buyers in your area are looking for in square footage, upgrades, and more. This research is vital to ensure you make a wise investment decision and buy a home that will sell quickly.
  •   Budget your house flipping plan so that you don’t end up paying too much for a property. Set a limit for how much you’re willing to pay, and never go over that amount when offering. Don’t forget to consider the budget for renovations and upgrades as part of your complete budgeting plan. It’s essential to find a home at the right price, so you know you’ll get the best investment return.
  •   Consider hiring a home inspector who can help you assess the necessary repairs the property might need. A thorough inspection will make it easier for you to determine the total repair costs before you make an offer.
  •   Once you have a better idea of your proposed asking price, you can subtract the home’s cost and all of the repairs and upgrades. The final number will be your bottom line and show you what you’ll gain financially once the flipped home is sold.

The House Flipping 70% Rule

Use the 70% rule of real estate investing to guide you when looking for homes to flip. This rule states that you should not pay more than 70% for the house after the repair value, minus all repair costs. The ARV (after repair value) refers to the estimated value of the property after all of the necessary repairs are complete. Let’s say the home has an ARV of $100,000 and requires $25,000 worth of repairs. The house flipping 70% rule would suggest that you pay approximately $45,000 for the home. This leaves you with 30% “wiggle room” to pay for miscellaneous repairs and other costs if needed, and it also accounts for the amount of money you’ll receive once it’s sold. Here’s a simple formula to help you see how this figure is calculated:

ARV of $100,000 x 70% = $70,000 – $25,000 = $45,000

The Importance of Ceiling Value

When you’re ready to sell a flipped home, it’s crucial to understand the ceiling value. This term refers to a maximum asking price that you can put on the house, and state or local governments often mandate it. If you ask for too much, the home could sit for a long time, making some buyers hesitant to put in an offer. Talk to an experienced real estate agent to help you determine a fair market value for the home. Feel free to start by listing the house for a bit more, since you can always negotiate the final price down with a potential buyer later.

Structural Improvements to Consider

Even if the home appears to be in decent shape, there are a few key upgrades you should take into consideration. If the home has old knob and tube wiring, a full electrical upgrade is advised. Inspect the plumbing and look for signs of rust or wear. Insulation should be in good condition, and the home should feel comfortable when the HVAC system is running. The roof should appear in good condition with no leaks or missing shingles. Take a closer look at the home’s main components first to determine if these improvements are necessary.

Room by Room Renovation Guide

Inspect every room of the home you’re planning to flip to determine what types of renovations they’ll need. Each part of the house may require some updating and improvements to get a better asking price.

  • Façade: Paint the outside of the home or add new siding to give it better curb appeal. Cut down dead tree branches, lay down a fresh coating of grass seed, and update the landscaping to make the entrance more appealing. Fix any broken outdoor lighting or replace dead bulbs. Paint the front door a bold color to give the property an updated look.
  •   Bathrooms: Update the flooring and fixtures in the bathroom to make it look fresh and new. Make sure all plumbing is working correctly and that there are no signs of leaks. A simple tile job around the shower or tub can be an inexpensive yet significant improvement.
  •   Living Room: A fresh coat of paint and new flooring can quickly transform an outdated living room. If the home is “broken up” into several separate rooms, consider knocking down a wall to create a more open floor plan. Extend the windows and make them oversized to allow for more natural light.
  •   Kitchen: Replace outdated appliances with new stainless steel ones and consider updating old countertops to a solid surface like quartz or granite. You can repaint older kitchen cabinets to save money unless they’re broken or in disrepair.
  •   Garden: Check for pests’ signs and remove all weeds and dead plants from a garden area. Plant new flowers or shrubbery around the home to give it a fresh, lively aesthetic.
  •   Bedrooms: It’s easy to update bedrooms with new paint colors and new floors. A fresh coat of paint can do wonders for a bedroom. If the master closet is small, considering altering the layout to accommodate a larger closet.
  •   Laundry: Re-tile the laundry room and install a new washer and dryer if your budget allows. Install a sink in this room to make it more functional.
  •   Addition or Extension: If you have a larger budget, consider adding an extension to the home. This upgrade will be more costly and time-consuming, but it should also allow you to get a much higher asking price.

Adding the Most Value

Today’s modern homebuyers are looking for unique properties. If you want to add the most value to your house flip, make some current updates that will appeal to younger buyers. A glass railing along a staircase is a unique and modern choice that replaces the standard spindle design. High-tech upgrades like remote security cameras or doorbell alarm cameras are easy and affordable upgrades. Replace an old garage door with something sleek and contemporary. Energy-efficient windows will make the entire home look new, and it’s also a great incentive for buyers. Pay attention to the outside and install a new covered patio or deck. Many buyers enjoy spending time outdoors, so this is a great way to get more value for your flip.

Selling the Flip

Once your property is updated, it’s time to put it on the market. Enlist the help of an experienced, qualified real estate agent who is familiar with your local market. Check your listing to ensure that it has all of the home’s details, including the square footage, special features, and significant upgrades. Hire a professional photographer to take clear, detailed pictures of every room, including the home and the outside. With the right marketing plan in place, you can quickly sell your newly flipped home for a great return.

The process of house flipping isn’t for everyone, but it can be a smart investment choice if you have the know-how. Get to know your local real estate market and partner with professionals you can trust. Always stick to a budget when flipping houses, so you don’t end up paying too much. With the right updates in every room, it’s easy to quickly flip a house to get a great ROI.

How Do Mortgage Rates Affect Local Real Estate Buying?

Real Estate Buying

The chances are that you already understand that mortgage rates do have a huge impact on Manhattan residential real estate industry. This blog would certainly state all the far-reaching impacts that come along with rise or fall in mortgage rates.

Manhattan residential real estate values fluctuate with mortgage rates

When the mortgage rates fall low, it motivates real estate buyers to enter the market and buy the suitable option. They are sometimes at the fence to buy Manhattan local property and are only waiting for home loan mortgage options to get favourable.

That is how the rising property values get the economy charged up, by making property more difficult to obtain.

The inverse holds equal value as when the mortgage rates are at its peak, the buyers tend to withdraw the buying power or even enter the property market.

Also, one factor to know here is that with lesser buyers in the market, even the value of property decreases.

Noteworthy Points to Know About Effect of Mortgage Rates

The real estate property cycles have a huge dependency on interest rates. The potential Manhattan residential real estate buyers always keep a note of falling and increasing interest rates. That is how they pick options for property market.

What you need to understand is HOW MUCH effect of mortgage rates persists on real estate market!

Affects the affordability of a property

The price paid isn’t the lone factor that decides the overall property affordability. It involves other prices as well such as

  • Insurance Cost
  • Insurance for Natural Disasters Cost
  • Cost of Maintenance charges
  • Mortgage Loan’s total amount

How Much Difference can the changes in Mortgage rates bring to the market?

While looking at real estate properties, you’ll settle for deals that can be negotiated till your budget price ascertained.  Let’s say that by the end of the day, the mortgage rates fell and you received huge difference than what you were ready to earlier. With mortgage rates at a high, you may have to pay exceeding amount. Here are some examples with rough estimates to clear things out:

Assuming that the median price of a Manhattan residential real estate property listed (as of2020) is $259,000.

  • Taking the median average sales price to be – $250,000
  • If you apply for 30 year fixed mortgage after giving in 20%
  • That gives you $200,000 as finance amount for your real estate.
  • If the interest rate prevailing is 4.1%, the monthly paid interest turns out to be: $1,208
  • The slight increase in mortgage interest rate up to 5.1%, can increase the monthly amount to: $1,357
  • That is a huge difference of$150 monthly and the time period of 30 years loan makes it $50,000. The question is – Would it be a sane decision?
  • With slight increase to 6.5%, the interest amount goes to $1,500 monthly!
  • The overall amount goes to $130,000 in 30 years tenure!!!!

The red signal says to WALK AWAY!

How does change in loan interest amount affect the property sellers?

If you are in the seller shoes, and with certain rise in the interest rates, the buyer tends to spend less on the property. Since most part of it would go away in the interest rate, he wouldn’t go for maintenance and other changes at this point of time. Whenever the mortgage rates shoot up real high, chances are that you would have fewer homebuyers in the market.

That indeed would make you bring down the price of property to get a fair deal.

6 High-Tech Upgrades to Modernize Your Home and Boost Its Value

Modernize Your Home

When upgrading your house or remodeling it in any way, it’s really wise to be future-oriented with your upgrades. What this means is that aside from doing something you will currently benefit from, you should also consider how it will affect the value of your property in the long run. That’s why many real estate experts suggest that the best way to update your house is to treat it to a few upgrades that will boost its market value should you ever decide to sell it.

And even if you are really not considering selling your home any time soon – or at all for that matter, focusing a bit more on adding these types of upgrades really can’t hurt. So, with that in mind, here are just some of the high-tech products and gadgets you can use to instantly add value to your property.

Always be in charge of the temperature with a smart thermostat

By now, virtually every home in the world comes equipped with a thermostat. However, not every thermostat is a smart thermostat. That’s why, when thinking about upgrading your house, you should really check out this option. Upgrading your current thermostats with their smart alternatives won’t cost too much but it will offer so much in return.

The great thing about these nifty gadgets is that they can sense if you’re home or not and adjust the temperature according. Most of them can even be remotely controlled, which means you can simply adjust them when you leave work and be welcomed with the ideal indoor temperature once you get home. Needless to say, such a minor upgrade will really mean a lot if you ever choose to sell your property.

Play around with outdoor lighting

The outdoor lighting

The outdoor lighting is something not many people pay too much attention to. However, proper outdoor lighting will not only immensely help you but it will also boost your curb appeal. And if you really think about it, your house’s curb appeal will be the first thing potential buyers will see if you ever decide to sell your home. Even if you’re not thinking about selling your property, installing a layered outdoor lighting system will really do a lot for your house’s appearance. Not only that but it will also improve visibility and enable you to make better use of your yard even after the nightfall.

Create an outdoor entertainment area

Moreover, since you’ve already taken care of your outdoor lighting, it’s time to take things up a notch. Setting up an outdoor entertainment system is certainly not a necessity, but it will bring a lot of value to both your property and your experience living there. So, if you want to upgrade your home with something amazing all of your friends and family can enjoy, simply add a high-quality outdoor entertainment system to your backyard. Trust us, it will make all those warm summer nights far more interesting and enjoyable.

Implement a trusty security system

The next thing you should consider adding to your property – if you don’t already own one, that is – is a high-quality security system. There are plenty of options you can choose from, and they are widely different in terms of complexity. However, you should be looking for one that can cater to your personal needs. Just make sure it’s of high-quality and that it’s installed by a trusty and well-reputable company to avoid any potential inconveniences in the future.

Invest in a smart irrigation system

Invest in a smart irrigation system

Yard maintenance can not only be a pain but it can actually be quite difficult to master. Especially if you have various plants and foliage in your yard that don’t all require the same amount of irrigation throughout the year. The good news is that there are now plenty of smart irrigation systems on the market that can make this chore significantly easier. The majority of these smart systems feature a moisture sensor, that will make the entire irrigation significantly easier and more accurate. Just think about it – if you were buying a new home, this is definitely something you wouldn’t mind having already installed.

In the end, the choice of high-tech upgrades you decide to go with should really predominantly cater to your and your family’s needs. That being said, however, it’s always wise to be future-oriented with your upgrades to ensure that you get the best bang for your buck.

About the author:  Mike Johnston is an avid blogging enthusiast and experienced freelance writer with a focus in real estate, home improvement, and the construction industry. He is a regular contributor to the “Smooth Decorator” blog.

9 House Design Details and Features That Indicate Excellent Standards

House Design 1

The real estate industry remains optimistic in the current economic climate. According to investment strategists, the global COVID-19 pandemic has somehow helped many people realise the importance of having their own property. A personally owned property can be a fantastic defense against many of the uncertainties about the future.

 As such, whether there’s an upward or downward trajectory for the real estate industry, smart investors would do well to look into buying. And when it comes to investment opportunities, houses are always top considerations. Both fixer-uppers and luxurious provisions remain to be on high demand.

If you are looking to boost your investment portfolio by acquiring a ready-made apartment unit, that’s a fantastic idea. However, be as meticulous as possible to establish the price and quality compatibility of the apartment offers. According to real estate professionals, labels can be deceiving these days, so keep an eye out for tried and true markers of good standards.

What are these important indicators of a topnotch piece of property? Nine are discussed below.

1. Amazing views

Here’s a fact: The higher up an apartment unit is located in a building, the higher its price will be. Why? It’s because it typically offers a more spectacular view. Of course the skyline of the city is a better sight to behold than seeing into the window of an apartment unit in the building across from yours!

Also, a beautiful view from one’s home can contribute to a better quality of life. Research reveals that ocean views contribute to better physical and mental health. People who can see the beach from their homes report feeling calmer and more at peace than those who do not have such a view from where they live.

It’s practically the same thing with a mountain view. Those who live in a place that treats them to gorgeous mountain views on a daily basis claim that they are less likely to feel anxious or stressed. Thus, the view offered by the residential property is a reliable factor in determining true property value.

2. Spacious hallways

The width of the hallways leading to different areas of the house is also a top indicator of high standards.

According to international interior designer, Rebecca Robeson, this is because a hallway that is at least six feet in width automatically adds a luxurious feel to a home. It offers creative styling opportunities, and it can ensure comfort and convenience of movement inside the house as well.

3. Open concept

 

An open design for your home interior is modern and functional. The lovely thing about it is that it capitalises on possibilities. This is a must for discriminating property investors. Immense joy can come from the idea of having the freedom to do what you want or to take full control when it comes to decorating or arranging things for function.

You know you have a fantastic, high-quality home if it can support a creative lifestyle that is also ever-changing.

4. Beautiful bathrooms

In truly amazing homes, the bathrooms are not just mere rooms that allow people to take care of their hygiene. They are provisions for comfort and relaxation as well.

Some of the wonderful implements in the bathrooms of well-designed houses are high-tech toilets, rain showers, bathtubs, a spacious vanity counter, soft and cosy lighting, sophisticated tile work, and elegant hardware.

5. High ceilings

When it comes to luxury apartments in premium locations, high ceilings are a common denominator. The expansive feeling they create indicates an opulent life.

And for a homier atmosphere, a lot of property investors gravitate toward houses with high ceilings and exposed wood beams. Research reveals that exposed wood beams are a somewhat old-world, rustic detail that instantly brings warmth to any room and captures people’s attention.

6. Shiny Floors

House Design 2

A house built to impress has no sub-standard features. Therefore, even the floors are made of carefully selected materials. The most common flooring options for such homes are hardwood polished to a shine or stone such as marble, granite, or even honey onyx.

These options never fail to add a touch of luxury. Hard, dark wood floors, for example, are reminiscent of floors found in grand manors. Not only do they take centre stage when maintained well, but they also offer charming acoustics for the house’s interior. Meanwhile, stone floors are quite similar to those in stylish buildings, such as fine dining restaurants, hotels, and meeting rooms.

7. An impressive front door

There’s nothing like a door (better still, doors) with a commanding presence to signify that you’re in for something magnificent. Indeed, the best-looking houses always have impressive front doors.

It doesn’t matter if they’re big or a little on the smaller side indoors, an apartment with a beautifully designed wood, glass, or metal door is required if an apartment is to be labelled ‘luxury’ or ‘premium’ because the front doors are the first feature of the unit that people will see. If the door doesn’t look nice, it can automatically spoil a person’s overall impression of the rest of the house.

8. Large windows

House Design 3

If you think about it, the only reason for choosing small windows is so you can be prevented from seeing what’s outside, which is likely a rather disappointing view. Therefore, they are an important feature for a high-end apartment or residential property.

For top-quality homes, large windows are staples because they bring the beauty of the outside in, and they also provide excellent natural illumination and ventilation. Also, massive windows simply give off a classier vibe; they create the illusion of a bigger space and help inspire joyful moments spent just taking in the view beyond the house.

9. Security implements

Finally, security features are vital components of high-end homes. They assure you of a well-protected life. The thoughtful integration of security features is an excellent source of comfort and peace of mind — feelings that anyone would be happy to experience in their own home.

Indeed, houses make great investments; they are an integral component in creating the life one wants. It can be your own place to live in or an income-generator. So, if you are raring to invest in a new house and you have been receiving different real estate offers to consider, take into account the information provided above. Armed with these points, you’ll be better equipped when it comes to determining if the price of the provision is equal to the quality or actual value it offers.

 

6 Smart Ways to Get the Best Deal on a New Home

Best Deal on a New Home

Homebuying can be both exciting and nerve-racking as it requires elaborate research and lots of smart budgeting. For starters, you need to check your credit score and determine which type of mortgage you can qualify for. Then, you need to find your dream home, make all necessary inspections, and go through a lengthy conveyancing process. To simplify the homebuying process and help you get the best deal, we are listing six tips you should keep in mind when purchasing a new home.

Strengthen your credit score

Most people buy new homes with the help of loans provided by banks and mortgage companies. These institutions impose strict credit requirements on their clients, and in order to be able to negotiate smaller monthly payments, you need to have a strong credit score. If your credit score is unaccountably low, you should pull out your credit report, and check if you’ve been wrongfully penalized. Finally, you can try to strengthen your credit score by paying off all of your short-term loans before you take a mortgage.

Take rural locations in consideration

homes in county towns

Even though most young people nowadays would rather buy expensive houses and flats in the city, there are many reasons why they should take rural locations into consideration. For starters, homes in county towns are very affordable, and county towns within the comfortable commuting distance are great places for raising a family.

These homes usually come with bigger backyards, which can be used for agriculture and various leisure activities. Expensive city sport club memberships for kids can easily be replaced with hiking and fishing trips, so raising children in rural areas is also cheaper. On top of this, neighbours in these small towns usually form tight communities, and lifelong friendships are quite common.

Conduct necessary valuations and inspections

People who aren’t legal construction and real estate experts should use professional valuation and inspection for determining the appropriate property price. Home inspections are very popular on the real estate market, and the company you select can visit the home you’re viewing, check its state, and conduct pest and termite inspection. In addition to this, you should also hire a professional property appraiser, who will provide you with a written valuation report, which can be very useful during price negotiations.

Score a good deal with house and land packages

new house and land packages in Melbourne

Getting a good deal on a house is difficult, but it’s possible. In Australia, for instance, it often means opting for a bundle deal. Known as a house and land package, this bundle deal involves purchasing a property together with the land beneath it.

For those looking to settle in the coastal capital, opting for the new house and land packages in Melbourne comes with a plethora of benefits, including significant cost savings and far less complexity involved in the homebuying process. These bundle packages also offer the potential for development and future growth, which translates to additional financial benefits to future homeowners.

Pay higher deposits

Most people are reluctant when it comes to giving higher loan deposits. They don’t understand that the bigger their deposit is, the lower their loan to value ratio (LVR) will be. LVR is a very important metric, which you’ll get by dividing the full amount of your loan with the price of the home you’re planning on buying. For mortgages with high LVRs (more than 80%), lenders need to pay mortgage insurance. The amount of the deposit influences the overall interest and you can also use it as a chip while negotiating other repayment plan specifics.

Hire a conveyancer

Conveyancing can be hard for both the buyer and the seller, so hiring an expert conveyancer is in your mutual interest. Conveyancers provide advice and information about real estate sales, collect all necessary documentation, and conduct the settlement process. If you’re buying your first house, a conveyancer will:

  • Research the property and check its title certificate;
  • Deal with the sales contract and memorandum transfer;
  • Put your deposit money in a trust account;
  • Adjust all rates and taxes;
  • Act on your behalf and advise you during the property settlement process.

Wrapping up

Buying your first home should be one of the most wonderful experiences in your life. That’s why you should conduct all necessary checks and inspections and take the stress out of the equation. Following these tips will help make your purchase go smoothly and ensure you get the best deal there is.

About the author: Mike Johnston is an avid blogging enthusiast and experienced content writer with a focus in business, technology, entrepreneurship, and real estate.

4 Great Tips for Buying Multi-family Real Estate

Multi-family real estate

Multi-family real estate is, for many reasons, a wise and lucrative investment. It doesn’t really matter if you’re a homeowner or a renter looking to relocate into a more cost-effective living environment, or if you’re an aspiring investor looking to buy a property overseas or in a local market– multi-family homes can certainly yield sizable returns and logistical benefits down the road. Investors can rejoice at the fact that managing multi-family properties is easier due to the proximity of the units they’re renting, while homeowners also have a wonderful opportunity to become landlords and generate passive income and establish financial independence by renting out the other units.

That said, though, you still need to prepare for this grand step and understand all of the key variables that go into cost-effective property acquisition. Here are the five great tips that will help you buy the best multi-family real estate to suit your goals.

Research not one, but many locations

multi-family properties

Of course, we have to start with the location. Yes, it’s important that you research various markets and neighborhoods in order to find the best properties available for the lowest price (something we will delve deeper later on), but more importantly when we’re talking about multi-family properties, you need to sense the supply vs the demand. You see, multi-family real estate is somewhat of a niche, so you might not be able to find a lot of properties (or at least not the ones you like) in your region.

You might have to look into the surrounding suburbs, or even into different towns in order to find neighborhoods with these unique property types, which will invariably influence the price and the demand for multi-family real estate. The key is to look into numerous locations and markets in order to have a lot of prospects, so that you can start narrowing down your search and see which property ticks all of your boxes.

Find that diamond in the rough

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All of these and many other reasons necessitate that you do your best to find an investment option with the highest long-term ROI potential, which typically means acquiring the property as well as the land it sits on, no matter if you’re looking to move in yourself, if you’re just looking to invest, or both. This is something that investors and future homeowners in Australia have been doing in recent years, for example, especially in costly urban markets.

In the Land Down Under, investors will look for prospective house and land packages in Sydney that allow them to procure the property and the land beneath in order to retain full control of their asset, and have the ability to shape the future of their investment. This is a great way to maximize your investment in the long term, so be sure to use the same approach and find those multi-family house and land packages in your region.

Be ready to double your investment capital

By now you’re sure to know that multi-family properties cost more than single units, that should go without saying. The price will vary greatly, though, based on numerous socio-economic factors that permeate the market, as well as the emerging trends that you need to know about. This is why doing your research is so important, and why you absolutely need to overestimate your budget.

Needless to say, the bigger your long-term goals are, the bigger the investment will be. This is why you need to have an excellent credit score and borrowing potential, why you need to stage and improve any property you may own, and why you should consider pooling your resources with other interested investors. If you’re looking for a duplex in order to move into one unit and rent out the other, then you can expect to find properties at literally half the price of a detached family home, while triplexes and quadruplexes can cost way more depending on the market.

Allocate resources towards renovation

multi-family property

There’s a lot of math involved in buying a multi-family property with a high ROI potential, especially if you’re trying to figure out whether to buy an already fixed-up property, or to buy one for a third of the price in order to restore it to its former glory. Typically, the latter will give you much more wiggle room, and you will be able to control your expenses, so be sure to allocate resources towards procurement, as well as renovation during the initial planning stages.

Wrapping up

A multi-family property is, simply put, a great long-term investment. But before you spring for the first good deal that crosses your path, be sure to use these tips to make the best possible decision for your personal and professional future.

About the author:  Mike Johnston is an avid blogging enthusiast and experienced freelance writer with a focus in real estate, home improvement, and the construction industry. He is a regular contributor to the Smooth Decorator blog.

Corona Virus and Its Impact on Immobilien Ulm in Germany

There are many diseases in this world for living things and almost every disease has treatment in this technology era. But corona-virus does not have any specific medicine. This virus has a very low rate of spread out, approximately 2 to 3 percent but its separation speed is very fast. It spread by touching things. So, in these many businesses badly affected by corona-virus. Immobilien Ulm is facing many problems regarding real estate business in Germany.

corona virus After getting out the COVID-19 or coronavirus the world economy is facing many problems. Yet, corona-virus caught the whole world. On a daily basis, many people are going away from each other that’s why no one run the business properly. Almost every country has to apply lock done, people are enclosed in their houses. Every job, businesses and other activities are terminated. Due to this virus real estate agents facing several problems.

Statistics COVID-19:

Italy, France and another cool area still in danger of coronavirus. They lost their families and business. WHO provides information regarding coronavirus?

Coronavirus and business:

Many Companies have activated no-journey and work-from-domestic guidelines for some employees and physical-distancing-at-work measures for others.

The task is evolving. For far off employees, interruptions are greater common than inside the office. Making an intellectual separation from sometimes-chaotic home lifestyles is tough. Workers are finding that they don’t have the competencies to achieve success in a prolonged far off environment, from networking to growing exercises that power productivity. They fear that staying far off may want to make them less valuable, mainly in a recessionary environment.

The industrial zone will also experience the impact of the coronavirus outbreak, both exact and bad. If online shopping turns into more prevalent because of the coronavirus, greater industrial space can be required to house inventory at distribution centres. However, larger commercial spaces possibly will mean more personnel in close proximity to each other, so employers will need to be cognizant of how this will impact their operations during destiny outbreaks of the next predominant virus.

Applications will not be restricted to corporations that have been refused a mortgage on business terms, extending the quantity who benefit. However, the Treasury has now not capped the interest quotes banks can charge.

Coronavirus and real estate business:

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The coronavirus is clobbering the real estate Ulm industry and it will get worse before it receives better. With the aid of the area and industry, the effects on Immobilien Ulm will differ, and the quantity of the effects will depend on the financial shutdown period.

Hotels, restaurants, bars and other retail entertainments (especially in tourism-pushed areas), which have been hardest hit up to this point, have been closely followed by retails and housing.

Supplies that builders and entrepreneurs would want a growing number as workers remain at home and due to the shutdowns, quarantines and curfews on the Immobilien Ulm is being disrupted. A large number of redundancies will lead customers to further decline and a downward trend in monetary activity will be initiated. These factors are dragging the economy into recession together already.

Several companies and organizations are in effect restarting, which may be a cause for hope that daily economic activities and real estate prices will return very rapidly.

The demand for real estate:

Specific types of real estate properties were infected to a varying degree by the virus. In retail and hospitality markets, the imminent effect on demand was clear, while offices were also impacted by corporate growth and relocations schemes. In the face of a growing warehousing demand for fresh produce, health care and the distribution of on-line orders, logistics facilities serving e-commerce vendors and logistics providers are expected to remain stable.

For the logistics chain cold, which is one of the most needed logistics categories. This applies especially. More enterprise continuity preparation will also improve the storage of data and data centres.

Real Estate Ulm development:

The implications for retail sales in the near term are apparent. There can not be more than one-fifth of the daily income in restaurants and stores. It is an improvement in the market, as landlords are willing to satisfy the demands of their tenants with a surge of reduced leasing. It remains to be seen how much indulgence or security the owners deserve.

This transition has created a confounding environment, which is very unfavourable with the investment climate in the region. The financial exchange has already begun exhibiting depreciation trends as scared investors come off stocks. Similar issues can arise in the real estate Ulm if the condition doesn’t show early signs of improvement.

Purchaser and seller of real estate:

At the time being, Corona Pandemic had little impacts on buyers and sellers ‘activities in Immobilien Ulm. Temporary travel restrictions have caused certain difficulties and some property prices have been endured for foreign buyers or sellers. However, the final impact is still not very high. Local investors remain engaged in their daily jobs but continue to track the changing situation closely and carefully.

Typically, sellers, dealers, private land, land, and individual real estate agents’ attorneys compete in the final states of which attorneys are involved in residential or commercial property closings. New signs say that vendors, suppliers, and legal practitioners will use the digital signature to take a pass and register final papers. Perhaps the negotiation delegate and other activities (hopefully) would erase textures, limit all people’s touch.

Summary:

Although the coronavirus does not seem to have a direct influence on the real estate agents and industry, a closer analysis indicates that it may potentially have a far-reaching effect. Expect that the real estate industry will see significant shifts from corporate to retail to manufacturing regardless of whether the coronavirus is short-lived or is here to stay.

10 Great Places to Buy Real Estate Overseas

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Finding properties at bargain prices in the vibrant US real estate market is nearly impossible. Over the past few years, the cost of housing has been steadily increasing. In fact, in some areas, homes are more expensive than they were in the heyday of the housing bubble.

However, if you are an investor, retiree, or adventurous buyer looking to increase your real estate portfolio, all is not lost. Have you considered buying property overseas?

Why Buy Property Overseas

The primary reason why some homebuyers are looking at overseas property options is cost.

Investing in overseas property markets can be lucrative and less cost-prohibitive than in the US. Moreover, some overseas markets are experiencing rapid growth. As a result, buyers are likely to recoup their investments in these markets faster.

Interested in buying real estate overseas? Here are 10 vibrant markets that are likely to produce a larger return on investment.

1. Panama

Panama is an attractive real estate investment destination for international investors. You can put your money in two particular areas: rental apartments or agricultural opportunities.

Resale transactions have slowed down in Panama City, and the trend is expected to remain the same over the coming year. This is an opportune time for investors to buy on a dip.

2. Turkey

Turkey has been enjoying strong economic growth, which is fueled by an increase in the number of tourists coming to the country over the last few years. In fact, in 2018, Istanbul was the 9th most visited city in the world, ahead of big names like Los Angeles, Rome, Barcelona, and Berlin.

International investors will find an easy footing into Turkey’s real estate market thanks to the low barrier of entry. Rental units in this market are within reach of most investors’ budgets.

3. Brazil

The property market in Brazil has something to offer for all types of investors.

For low-ball real estate deals, you should focus on the Fortaleza area. This coastal region is swamped by millions of tourists all through the year, and you’ll do well with rentals targeting the local holiday market.

4. Belize

If you are not into international beach property investments, check out the Cayo district of Belize. This mountainous area has lush jungles, and the prices are quite low compared to prices in areas such as Ambergris Caye. At Cayo district, you can snatch two or three-bedroom houses for less than $100,000.

5. Dominican Republic

Investors interested in real estate in the Dominican Republic should focus on the capital, Santo Domingo.

The last few years have seen the Dominican Republic’s economy steadily growing, largely due to direct foreign investment. Santo Domingo is the gateway of the country, and business travelers pass through it every day. You can cater to the needs of these travelers by offering furnished apartments.

6. Nicaragua

In Nicaragua, Granada offers great opportunities for real estate investment. The city’s rich history, low cost of living, and fine weather make it a coveted stop by visitors and residents. You can buy historic homes in the city and convert them to rental condos.

7. Portugal

Portugal’s property market has been steadily improving since 2014. For example, some areas in Lisbon have seen a dramatic increase in the price of real estate, compared to what would be considered their market value. However, there are still places around the city that offer good value and opportunity for ambitious investors.

If you want to dip your toes in the country, start by looking for renovation projects in the Port region north of Lisbon and along the country’s Algarve coast.

8. France

In France, Paris is the city to buy prime real estate at bargain prices. Like is the case with all markets, prices fluctuate now and then. However, owning a piece of Paris is one of the surest ways of building long-term wealth.

Buying real estate in Paris is also attractive because of France’s financing rules. In the county, foreigners are eligible for in-country financing. Moreover, with interest rates of French mortgages at a historical low of 2%, no other real estate market in Europe is as attractive.

9. Mexico

You’ve seen the drug cartel wars in Mexico but this should not dampen your spirit for investing in the country’s real estate market. Mexico has robust local tourism driven by its expanding middle class. This is one of the factors that make the country a great choice for investors interested in rental properties.

Some of the markets to look at in Mexico include Playa del Carmen on the Riviera Maya and Puerto Vallarta on the Pacific coast.

10. Italy

The Abruzzo region of Italy is an untapped region for international investors looking for real estate. Italy’s real estate market is vibrant, and prices are quite affordable compared to other leading European countries.

Abruzzo presents a great opportunity for real estate investing thanks to its vibrant cultural festivals, delicious foods, and outdoor recreation.

Investment Property 101: Practical Tips for Succeeding as a First-Time Landlord

Investment Property 1

Investing in properties you can rent out and make additional income from sounds rather easy in theory. While there’s no arguing that real estate investing is a very lucrative business, being a rental property owner isn’t as simple as showing up every month to collect the rent.

In order to succeed as a property investor, there are some key factors to keep in mind as things can get rather challenging. Here, five tips for first-time landlords that will help set you up for success in the world of real estate investing.

Know the rental laws in your area

First things first, before you’re able to put up a “for rent” sign for your apartment, you want to make sure that you understand your rights and the rights of your future tenants. For starters, first-time landlords should read the Fair Housing Act and make sure they understand the process of eviction before they accept any applications from potential renters.

Rental laws vary from city to city, so you want to make sure you get familiar with laws that apply to your area. This should be your top priority as it will help you protect yourself while also avoiding any fines and liability – issues that could emerge if you don’t adhere to certain housing laws.

Select the right property

Investment Property 2

Finding the right property is a vital step in the process, and it involves some serious market research. This isn’t an easy task, especially if you’re new to the real estate business and don’t know what to look for in a property.

This is why it pays for first-time landlords to find a reputable property investment company in the area that can help them select the best property for their needs while avoiding some common rookie mistakes along the way. Working with the experts in the field will ensure that you get valuable pieces of advice that will save you time and money in the long run and help you start off in the black instead of red.

Advertise your rental property online

Once you’ve selected a property you plan on renting out, it’s time to tackle the marketing part of the process. Most renters go online when apartment hunting, so it pays to post your rental on one of the apartment listing websites. Take some time to come up with an eye-catching and impressive rental listing description to ensure you attract more potential tenants to your page.

Add as many photos as you can, provide enough information for your listing, and make sure to include basic details such as the location and rent price. Don’t completely forego the traditional way of advertising either. Have your friends and family spread the word and print out flyers you can use to market your rental unit and increase your chances of finding the best tenants for your rental property.

Tenant screening is a must

Now that your rental listing is online, you can anticipate rental applications. Whether you’re a seasoned property investor or just starting out in the real estate business, your main goal should be to find trustworthy tenants whom you can trust enough to hand them the keys to your property. For that to happen, you will have to perform extensive tenant screening to ensure that the individuals you’re working with are people you can get along with.

Investment Property 3

That means conducting a criminal background check, running a credit check, as well as getting references from tenants’ previous landlords. You also want to make sure they can pay the rent on time and whether they agree with all the lease terms. Always perform the screening, no matter how reliable the person may seem, what car they drive, or how much they make as this can save you a lot of hassle in the long run.

Make sure you have a written lease agreement

Aside from making sure you rent to the right tenants, you also want to make sure that they sign a written lease agreement. As stated in the previous tip, as trustworthy your prospective renters may seem, you need to remember that this is your business, and as such, you want to minimize and eliminate any risks when it comes to rental property use.

Trusting the other party to comply with rules that aren’t written or documented in any way simply isn’t the right approach for a first-time landlord – or any landlord for that matter. Even if you’re renting to a friend or an acquaintance, always have them sign a written lease agreement. That way, they’re obliged to abide by the rules and ensure their actions are in line with the conditions stated in the contract.

Property investment is a profitable business, no doubt about it. However, make no mistake – being a landlord is a full-time responsibility, contrary to popular belief of it being a source of passive income. There’s a lot of things to consider, and the to-do list is quite lengthy. But if you manage to lay the groundwork, you can hope to reap the rewards later on.

3 Best Countries for Holidays to See the Northern Lights

“Escape to the divine spell of ‘Aurora’, the Roman Goddess of dawn and ‘Boreas’, the Greek north wind.”

All about Northern Lights

An aurora sometimes referred to as polar lights or northern lights (aurora borealis) is undoubtedly one of the most spell bounding natural gifts to countries like Iceland, Finland and Sweden. It is a display of natural light in the laps of the Earth’s sky , predominantly observed in the high latitude regions such as Arctic and Antarctic. Now before taking you to the enchanting world of Aurora in the three famous countries, let us briefly explain you the cause behind this beautiful natural phenomenon. Auroras or Northern Lights are nothing but the result of disturbances in the magnetosphere caused by solar wind.

Northern Lights

Explore the Northern Lights

Many people who have been fortunate enough to experience the elusive Northern Lights will definitely narrate you its beauty. Those who have not yet got lucky to observe the colorful dancing display in the night sky get ready to book your tickets to have an experience of a lifetime. Here are the three countries that promises to gift you a treat to the eyes by their spectacular Aurora which you will definitely crave to preserve in your hearts.

1. Iceland

Iceland is our winter wonderland where we can experience the magnificent dancing lights twirling before us along with the snow covered waterfalls at every corner. Th Northern Lights are one of the biggest draws to visit the snow clad country. But it being, a natural phenomenon is quite elusive and unpredictable.

Northern Lights in Iceland

So plan your holidays from late-August to mid-April or from September to March, when one enjoys the maximum chances of experiencing the dancing lights. There are a number of tour operators offering late night sightseeing excursions from Reykjavik and they are expert in hunting the best spots from where you can explore the Northern Lights which reveals its beauty in the darkest hours.

2. Finland

In Finland, our favourite Northern Lights can be viewed easily in a range of evidently built spaces from glass igloos or luxurious suites. They are visible on usually 200 nights or every other clear sky in the Finnish Lapland. You can opt for the traditional ways of Aurora spotting such as snowshoeing, cross country skiing or snowmobile or sledge dog touring. This will also enable you to experience the oldest traditions of the country. If the chilling weather is not your thing completely, then Finland also has certain comfort zones for her tourists.

Northern Lights in Finland

The Arctic Treehouse Hotel, Rovaniemi, Kemi Seaside Glass Villas by the Bay of Bothnia and few other hotels or villas have been established for the increasing tourists. So whether you are a lover of the crispy chilled weather or simply seek a warm corner to experience the jaw dropping phenomenon, Finland never fails to welcome you with all your requirements.

3. Sweden

You can also head to Swedish Lapland between early September and late March to see the beauty of Northern Lights. The large expanse of land in the northwest corner of Sweden welcomes innumerable visitors during the long winter nights to witness the incredible light show of Aurora.

Northern Lights in Sweden

If you are planning to visit this majestic part of the world, make sure to list few places such as Kiruna, Aurora sky station, Jukkasjarvi or Laponia. They will enable you to escape into the wilderness of one of Mother Nature’s finest handiwork named Northern Lights.

Now as you know the three best countries appropriate for holidays offering you the cherry on top- Northern Lights, hurry and book your tickets to explore the magnificent light show dancing and twirling before your eyes. Make your holidays a magical one at these countries.

 

Author’s Bio

Yogi and Suchna believe in taking the road less travelled and stumbling upon some hidden gems along the way! For over a decade, they’ve mapped their way across various continents, sniffed out unusual routes, discovered new flavours’ and stayed at quirky hostels. TheVillaEscape is their expression of soul travel. To check Northern Lights Iceland you can catch up with them at TheVillaEscape.