Purchasing an existing home has its perks. If you wish to live in the city, land space is limited and is typically more expensive. Buying an existing home with a large lot will be less expensive then buying the same size lot and building on it. When it comes to the size of the home, don’t base the value on only the price per square foot. Because the price of construction materials has increased over the decades, buying a home is going to save you money over building brand new. Another thing to keep in mind is that remodeling an older home to your tastes or functionality can not only save you money over building, but can also add value to your home in case you ever have to sell.

One thing that can not be beat with an older home is its character and charm. There are some characteristics of older homes that are very desirable to some buyers. The characteristics are in the details of the woodwork such as in the molding or the staircase. The character is even displayed in the floors, the fireplace, or the overall exterior of the house. If you are the type of buyer that is looking for that character, remember that updates can be made while retaining that character you love. Another great aspect of an older home is the yard! Typically, the lawn is going to be well rooted and the neighborhood will have large, mature trees.

Of course where there are pros, there are also cons. With an older home, there may be more maintenance issues to deal with. Some of these maintenance issues include faulty or not-to-code wiring, plumbing, roofing, appliances, or heating and cooling. Unless, steps have been taken to update, an older home is typically less efficient. This is simply because materials and technology are constantly improving to make our homes more efficient. A more efficient home costs less to operate and therefore results in a lower utility bill each month. Because of the issues that can arise when purchasing an older home, it is important to hire a well-experienced home inspector. The home inspector can help detect costly problems before you buy the home.

In contrast, building a brand new home, if built correctly, should have a very small amount of maintenance for up to fifteen years. If you don’t want to worry about costly repairs for quite some time, building new is the way to go. Also, the majority of builders have at least a one year warranty on a newly built home. This should cover any out-of-pocket expenses should the issue arise. This goes for the appliances as well, for new appliances, there is usually a warranty that will cover any problems you have.

The number one advantage of building a home is that you get to decide exactly what you want. There are different levels of custom homes. A new community that is being constructed by a builder allows you to choose from a few of the builders layouts and lets you decide the finishes. Take it a step further and purchase a lot to build using a layout that the builder has in their library. If you want a completely custom home, you will need to pay an architect or builder to draw up the plans which will be an additional cost. When building a custom home, you can decide everything from the layout, to the color of the paint and the style of the fixtures. Building a custom home not only allows you to choose the style of your home, but it also ensures it will be built to code and will have the newest materials. Your home will be more efficient and will save you money every month! You also have the ability to monitor the entire building process and can catch anything that doesn’t look right. Many people feel more of an emotional connection and have a more satisfying experience if they’re actively involved in the process and decision-making.

Before the building phase you must keep in mind the resale value. You never know if you will need to sell your home sooner rather than later. It is best to not overbuild since each neighborhood has a certain price range of homes. If you build a home that really exceeds that price range, the value of your home will be much less than it would be in an appropriate neighborhood. Usually, you do not want to have the most expensive home on your block.

There are some drawbacks to building a custom home. One possible problem from the start is obtaining a loan. It is harder to get financing to build a home simply because it is riskier for a mortgage lender. It’s harder for the lender to determine market value before it is even built. Another possible drawback is that many of the newer homes built today have very similar layouts. Buyers that are looking for a lot of character will not feel they are getting that in some of the newer homes unless they want to more money for it. Another thing to keep in mind is the time it takes to build the home. You need to have a place to live while the home is being built. Building a home typically takes about 6 months to a year and can have setbacks. This means that an exact date for move-in may not be possible. After the home is built, landscaping is the next project to tackle. This may be an extra expense your home builder may not have quoted so be sure to ask when getting a quote. Finally, you will need to furnish your newly built home which could be another added expense to budget for.

After reviewing all of the pros and cons of a custom built home and buying a preexisting home you need to decide what factors are highest on your family’s priority list. Overall, be sure to interview and get quotes from a variety of reputable builders or contractors to help make the house your home. A good builder or remodeling contractor will help make the process fun and much less stressful while delivering a quality product!

Home Remodels and Custom Homes don’t have to be stressful. Hire a pro to make sure it’s done right and done stylish.

“Do for others more than you do for yourself”

Now I know many of you have heard this saying before but…. how many people actually following this great teaching from the Golden Rule Book. It’s better quoted as “Do unto others as you would have them do unto you”. Now I don’t want to be a preacher, I do however want to show you the benefits of this teaching and how it continues to change my life each day.

One of the things that I enjoy about sitting down and writing my own newsletters is that I get to share a part of my life with you each time (as well as grow my writing skills). It allows be to take time out of my busy schedule and reflect on how my week, month and year has gone. By performing this task, I’m able to change direction should I drift off course…. in other words, mid-flight correction.

I remember when I was a kid growing up and my mom would say this exact saying, “do for others more than you do for yourself”. What was amazing about her teachings was she preached it well and practiced it to perfection. Here’s the great thing about kids…. they mock what they see. So by seeing my mother live by this teaching, her lifestyle was automatically embedded into my sub-conscience which is now a part of my life.

You see, when I first got into Real Estate investing I did straight rentals. I knew from a young age that this type of investing would allow me to retire comfortably and provide me with the lifestyle I was looking for. The strangest thing was after a year of implementing my lifelong dream of investing I realized my approach was completely wrong and the only reward was only on one side…. MINE!!

It was a WIN WIN for me and only me!!

So without going into the details I changed my thinking and investing strategies to encompass a WIN WIN scenario for both the investors and the tenants. What I altered was to allow them a chance to own the home they were in. The best part about this idea was I now properly aligned my investing with my mother’s teachings. By doing this, I was helping complete strangers fulfill their dreams that deserved our help.

Now…. although we’ve put all these safety nets in place. At the end of the day we can only ‘lead them to the water but they have to fill their own cups’.

Gary Hibbert is a Canadian Real Estate investor. He uses a very smart and proven Rent to Own technique that provides a win win scenario for both the investor and the tenant. His technique of buying beautiful homes in beautiful neighbourhoods has proven to be a great strategy. Visit Gary and his team at http://shcinvestor.ca

Buying fixer-uppers has been a common investment technique for many years. These days, with millions of foreclosed homes available at bargain basement prices, fixer-uppers can be an excellent choice for buyers who are shopping for a home to live in, as well as for real estate investors.

Fixer-uppers are properties in need of repairs. They may be liveable in their present condition, or they may need quite a bit of work before they can be occupied, but in either case, there are some very important considerations when choosing the right property to help insure that you can achieve your personal objectives.

1. The Location

It used to be pretty rare to find a fixer-upper in a nice neighborhood, but the housing crisis has changed that. Today, fixer-upper properties are readily available in many of the nicer neighborhoods, especially in those states that have been hit hardest by high rates of foreclosure.

Don’t be impatient. Look around your chosen area carefully before making a final choice. It’s very important to be familiar with the local market. Choosing the right location will result in better property appreciation, and more demand when you are ready to sell, or better tenants and higher rental rates.

Avoid locations that have too many vacant properties, locations that have too many other investors in the area, or are places that you would not want to live yourself. Investor over-crowding tends to increase your competition and will therefore reduce your profits.

2. Know The True Market Value.

A property is not always a good deal just because it is a fixer-upper. Don’t let anyone sway your judgement about a property simply because it’s a fixer-upper. Just because a home has been foreclosed on does not automatically mean it is a good deal. Good deals are made through knowing what the true market value is, then negotiating a price that is as far below the true market value as possible.

3. Find A Fixer-Upper Project That You Can Handle.

Whether you are planning to live in the property, fix it up to sell or fix it up to use as a rental property, the most common mistake is that of taking on a project that is beyond your ability to handle.

I’ve done dozens of fixer-upper projects, including managing them for other investors. The biggest problem I’ve seen consistently is investors who take on projects that are bigger than they can handle. This leads to cost over-runs, projects that take too much time, and even running out of money and another foreclosure. I’ve seen numerous projects that were never finished after the buyer got over budget and ran out of money.

It’s easy to rationalize a project before you start, and inexperienced investors often believe that they can renovate an entire house in 4 weeks, working only on weekends in their spare time. That is a common mistake.

One biggie I suggest is to avoid any fixer-upper that needs walls moved in order to be functional. Moving walls and things like staircases can create unexpected problems unless you are planning to use a contractor who has adequate experience and a crew that can get the work done correctly. I’ve seen projects that began well and got totally out of hand and over budget after the investor decided to make extensive changes to the original floor plan.

If you choose a fixer-upper property in a desirable location, keep your rehab budget and necessary work within your ability to control, and you have a good renovation plan that you can stick with, you should find yourself owning a great property at a below market price. That means you’ll have some positive equity or a positive cash flow right from the start. And after all, that’s the main reason why you should consider buying a fixer-upper.

Donna Robinson is a 16 year veteran of the real estate industry. Her experience spans all phases of residential real estate, including licensed agent and rehabbing fixer-uppers. She is an active real estate investor who also provides coaching and consulting services to other investors. To discover how you may benefit from her expertise, contact her at coaching@reihelp.com and request a free PDF copy of her latest book on residential real estate.

The Good

Mortgage rates heading into the year remain at the lowest levels on many institutions books since being recorded, such as Freddie Mac’s weekly Primary Mortgage Market Survey and the Mortgage Bankers Associations weekly mortgage rates survey. The average 30 year fixed mortgage rate is hovering just below the 4 percent mark, which gives home buyers the purchasing power they need to attain an affordable mortgage.

Additionally, the Federal Open Market Committee has continuously announced their plans to keep the Federal Funds Rate at 0 percent to ¼ percent indefinitely until 2013. The Federal Funds Rate is the rate at which banks lend to one another and does not directly impact mortgage rates but does hint towards the direction all rates are headed so we should not see any significant increases to mortgage rates in the coming year.

The portrayal of the general media is that obtaining a loan to purchase a home is tough and not many potential home buyers qualify for a new home loan. This general assumption is very misleading and is hurting home sales and ultimately our economy.

In order to qualify for a new home loan through the Federal Housing Administration (FHA) you simply need a 620 credit score and a minimum of 3.5 percent of the home’s purchase price as a down payment. Obviously there is a bit more to obtaining a new home loan, but if you meet the qualifications above you are in a good position to purchase a home and should talk with a local mortgage company approved by the FHA for additional qualification guidelines.

The Bad

Home values across much of the nation took another big hit in 2011, an estimated $700 billion in losses. Accompanied by the lowest mortgage rates in history we now have a housing market that is more affordable than before the housing boom began making 2012 a prime home buying season for investors.

I predict that we will continue to see falling home values throughout most of 2012, but at a far slower pace than in recent years, and may even see stabilizing values, and in some areas increasing home values as the year wears on.

The Ugly

The biggest concern for the 2012 housing market will be the back log of foreclosures that banks have on their books. Foreclosures and short sales currently make up about one third of the entire U.S. housing market and are expected to increase in 2012.

This back log of foreclosures will continue to keep home values down, especially in some of the hardest hit communities across that nation. However, with homes as affordable as they are you can expect investors to snatch up and rehab one, two or even more foreclosures at a time for pennies on the dollar.

The rehab business has been in high demand and will likely continue throughout 2012 as many potential home buyers are ready to leave the in laws basements and the small over priced apartments for a more affordable home that they can truly call their own.

My prediction for the 2012 housing market, take It or leave it, is that home values throughout much of the nation are going to hit bottom by year’s end, home sales will increase on a year over year basis and home investors will be the big winners in 2012.

This article was written by Jeremy Redlinger, a Mortgage Loan Originator #627335 licensed in the state of Minnesota. As a mortgage professional of 10 years I strive to help home buyers find the home financing they deserve when purchasing a new home. For local information about the Minneapolis Housing Market and mortgage products please visit my website at www.newhomemortgagemn.com.

Your house is definitely the biggest financial asset in your life. Building your dream home should not be compromised or taken for granted. Find the best new homebuilder to make your place of living more secure and comfortable.

The most important thing in searching for a new home is choosing where to live. Your first move is to search for the best places. Avoid building your new home in a place where there are too many liabilities such as water and sewage disposal or other environmental concerns.

Finding the perfect location

To get the perfect place where you can build your new home, follow these steps.

What type of home do you want to build?

The first step is choosing your home style. Choose whether you want a bungalow, single-family house, or cabin type. If you want a big house, you need to plan all the details.

What is your budget?

Everything starts with the right budget. How much are you willing to pay for your house? By now, you should know how much you could afford. Remember to always stick to the budget. Never buy anything you cannot afford to avoid future problems.

What are the things you need to consider?

Find a good location where you can build your new home. Make sure you have all the things you need, such as accessibility to schools, hospitals, pharmacies, and shopping malls.

What kind of community do you want to live in?

This is one of the most important things you need to consider when looking for a new home. Go around the neighborhood and talk to the local residents. Observe carefully.

What kind of environment do you want for your family?

You’re buying a new home to ensure comfort of your family. Make sure the new environment is safe and favorable for your loved ones. Apart from that, you should also examine the civic facilities such as road, garbage, sewage, drainage, and the means of transportation. Living in a new place should be hassle free.

Negotiating for the best deal

Real estate transactions are sometimes complicated. It could be more difficult when negotiating with new homebuilders because usually home prices are based on fixed construction rates. Still, you can get the ideal deal if you know how to negotiate.

You may also hire a real estate agent to negotiate with the new homebuilders. An experienced real estate agent could work for you to get the best deal. This could be a better alternative if you think you do not have any negotiation skill.

Adelie Bailey is a parent of three children looking for the best new home builder to build their new home.

There are seven basic fundamentals that takes the guesswork out of investing:

1. Know the Market

Whatever you do, don’t guess the market!! Ignore those hot tips from family and friends and avoid predictions from people who are purchasing real estate purely on speculation. Investing without knowing what economically is supporting the value of real estate is speculation – not investing. Your job is to understand the local economy inside out. Any investment decision should be based on two factors – the economic fundamentals and the property’s ability to cash flow (that is the amount of income less expenses). Investigate and research your target region to understand the demographics in detail.

2. Is The Average Income Increasing?

In order to further understand the economics of an area, look at the wealth of its residents. Identify the average income for the city or town you are looking to invest in and compare this to the provincial average. All of this information can usually be obtained from Stats Canada or local government sites. If your target areas income is increasing faster than the rest of the province, this is generally a good indication that real estate values will move upward. Without an increase in incomes, any increase in real estate values will not be sustainable.

3. Population Growth

The next factor to look at is population growth. Identify your target region population growth and again, compare the figure to the provincial average. If there is in-migration of people to an area, you can almost predict the real estate market over the next few years. Statistics show that once people move into a region for the first time, they will rent for the first 2 to 3 years, after that, 50% will buy while 40% will continue to rent and 10% will leave. Learn everything you can about the businesses and industry for your target area and familiarize yourself with the local government’s plans for attracting jobs into the area.

4. Is the Growth Sustainable?

So you’ve identified that the average income of your target region is increasing and there are people moving into the area, now you need to look at the industry and education of the area to find out if it is sustainable. If you are investing in an area with one major industry, you could experience falling real estate values if layoffs are made. Look at areas that are supported by more than one industry and enough businesses and post secondary institutions.

5. Infrastructure Improvements:

Look at areas where local government is making investments into improving transportation links, such as highway improvements, new roads, light rail transit. These improvements have a direct effect on the real estate market, because people in general want to live closer to transit, making it easier to attract renters.

6. Political culture of the area:

Ideally the best areas to invest in are those with a forward thinking- dynamic leadership -the kind of government that is focused on bringing jobs to the area which in turn bring in people, leading to an increase in average income and a growth and developed infrastructure. For example, Hamilton Economic Department have been instrumental in transforming the city from a sleepy steel town into the number 1 city to invest in within Ontario. And of course, securing the Ships contract for NS has lead to pro-active leadership improvements too.

7. Transitional areas:

It will take a bit of digging but it is possible to uncover undervalued gems. Certain neighbourhoods are labelled no go zones but with a little digging they could prove profitable up and coming areas. Check with the local government to see whether there are any redevelopment plans in place for the neighbourhood you’re looking to buy. You should visit the area many times, both day and night to see for yourself what it happening. Investments in these areas typically take a little longer to appreciate but they are certainly worth checking out. Be cautious however – and don’t buy on speculation. Research the area and see for yourself.

Success in real estate investing is not a guessing game and there are no secrets. Follow this step by step process and you will buy confidently and intelligently.

Contact us for more information, we love hearing from you.

Jane Killeen-Payne is co-owner of Invicta Property Investments, a Canadian Real Estate Investing Company. Jane works with everyday people to purchase positive cash flow real estate in areas of tremendous growth and opportunity. For more information, please contact her at http://www.invictaproperties.ca

The availability of affordable housing is an issue in most cities and states. There always seem to be more residents than units, and tracking available units can be difficult. Though there aren’t enough units to meet residents’ needs, there are more than enough to make it nearly impossible for anyone to know exactly what is available and when. That’s why a group from New York University’s Furman Center for Real Estate and Urban Policy began working on a database for affordable housing. After years of planning and programming, the database is complete. If it works, it could provide an important framework for other cities looking for ways to effectively monitor affordable housing availability.

Several years ago, the Furman Center partnered with the New York City Department of Housing Preservation and Development (HPD), the New York City Housing Development Corporation (HDC), New York State Homes and Community Renewal (HCR), and the U.S. Department of Housing and Urban Development (HUD). The goal of the collaboration was to create a database that accurately tracks the status of New York City’s nearly 250,000 affordable residential rental units. Several test versions have been released over the years, on a very limited scale. But the final version was released this fall and is available for use not only by housing advocates or those working in assistance-related sectors, but also by the general public.

Users can conduct housing searches based on location, types of affordable housing subsidies accepted, assessed value, and physical condition. Results of the search are displayed on a map, and information includes the property owner’s name, number of buildings and units per building on the property, and any subsidies it is currently receiving. Clicking on a link brings up more detailed information, including assessed value, when the property received its “affordable” restriction, and even the number of housing code violations that have been filed.

One of the greatest benefits of housing databases is that they give residents some autonomy and control when deciding where to live. Residents no longer have to rely on third parties to location available homes. The residents can search for themselves. It also allows residents to choose where they want to live, helping ensure that more families reside close to work, or the school they want their kids to attend. Because residents no longer have to simply accept whatever is available, but can make some choices regarding location and type of housing, databases like the one developed at NYU could spur further economic development and encourage schools to improve student performance in an effort to win over potential residents.

The Furman Center and its partners hope their efforts will assist in preserving the city’s affordable housing stock, and aid in the planning of future developments. Housing advocates hope other cities will follow New York’s example, and begin developing comprehensive databases similar to NYUs.

Want to get a free program guide of Sean Carpenter’s top 8 favorite government programs for real estate developers and investors? Request your free program guide today at:
http://www.governmentdealfunding.com/go/programs/

We all are well aware of the fact that the price rates of real estate properties keep on fluctuating all the time and this is the reason why this market is considered to be the most unstable market. Searching out for a suitable real estate property can be a challenging task for you. You need to be completely aware of the market conditions if you want to acquire some best possible deals in this regard. There are certain tips and tricks that can actually help you in locating a suitable and prospective real estate property. You need to keep some of the necessary factors on your priority list while searching out for your dream home.

There are certain elements that you must consider before investing money in the real estate property. It can actually make your new home research, easy as well as manageable. Some of these major considerations are listed below.

Living Space
Different types of real estate properties are comprised with different kinds of living space. The overall home layouts as well as the home size are the two essential factors that you need to keep on the top of your priority list. Before finalizing any kind of deal, you need to consider the type of rooms as well as the floor type. You must always look out for such properties that are comprised with open spaces. If you love to enjoy the whole city view from your living room, then you can buy home on a third or fourth story. Make sure that you always consider the number of family members and choose your home accordingly.

Location
Many individuals do not pay proper attention on the location of their property and this leads to a lot of problems in future. However most of the home owners look out for nearby areas and neighborhood region. It is really one of the most important elements that you need to look out for while purchasing house. The location of a real estate property is the most necessary element that is actually responsible for deciding the selling capability as well as the price of the property. You must always buy a home which is located very near to the school, market, hospital, shopping mall, airport, railway station, bus stand or other basic areas.

Basic Home Amenities
The basic amenities can actually help you in finding a suitable home. They are actually an integral part of every real estate property. You must always search out for right amenities as per your needs and requirements. Your prior amenities may include kitchen, balcony, pool, drainage system, garbage system, water and electricity supply, parking and security. Some luxurious amenities may include indoor spa, living room bar and pool table. Make sure that you pay attention towards these amenities.

So, these are some of the major real estate considerations that you need to keep in your mind while looking for your dream home. I am sure that you will get a lot of help in this regard.

Understand real estate investment and check some of our useful real estate buying tips.

Purchasing a home is stressful enough without having to worry about possible problems hidden behind the walls or those carefully concealed by handy remodeling. The majority of home buyers work with a licensed home inspector to conduct a thorough inspection before sealing the deal on their purchase of a residential real estate listing. A professional inspection will typically uncover the majority of construction defects. In addition to conducting a meticulous inspection it’s also a good idea to review the real estate disclosures with the selling agent.

Sellers are legally bound to disclose all defects in their home prior to selling, and can therefore be legally held accountable. Upon listing your home for sale, these disclosures are signed and made available for review by all potential homebuyers. While there are a variety of typical disclosure forms for things such as mold, lead paint, natural hazards and radon, it’s also a good idea to question the seller in detail as to whether or not there are any other defects.

Some key questions include those about the age and condition of the roof and windows, past structural repairs, HVAC and plumbing system failures, basement leaks, appliance repairs, floods and even questions regarding repairs and additions. It’s important to know whether or not permits were obtained for additions or remodels as this is a key to the quality of workmanship. While a lot of do-it-yourself types can handle a small remodel, a lot of homeowners get in over their head leaving the future homeowner with a world of repairs.

Disclosure laws vary from state to state. Ideally, your Realtor will advise you as to the disclosures available on the home you’re interested in. When buying a home listed for sale by owner, direct questions to the sellers are even more important, especially if you as a buyer are not working with a professional real estate agent.

As a seller, the more you disclose the better. Lawsuits against sellers who did not completely disclose known problems with their home can cost thousands of dollars and months, if not years, to settle. Not disclosing can be construed as fraud. For those going the for sale by owner route, it’s highly recommended to consult a real estate attorney to make sure the seller is in compliance with real estate laws. Real estate laws and disclosures are highly complex, even for the most seasoned real estate professional. Keep in mind that disclosures are helpful to protect all parties involved.

George Kolar
http://www.signaturelistings.com