Archive for category Real Estate
Buying a New Build Home; What you need to know
Posted by Top Home Loans in Economy, Real Estate on September 1, 2010
Most people buy resale when buyer their first home; however, many new home seekers will buy a newly built property. A new build is much different than a resale property in many ways. Below is several things that you need to know about before you sign on the dotted line.
The Price The biggest purchasing point, in most properties, is the price for the property. Many people want to try and get the best deal on their property, so they want to pay the lowest possible. Keep in mind, new build prices are generally non-negotiable. Also, the price that the sales agent gives you upfront is the base price. This price usually does not include any upgrades. The upgrades can end up costing quite a bit extra, so keep this in mind when choosing a home.
The Closing Date What time you will be moving into your new home is a crucial point. The price point on the property is based on fair market value for today. If the market is expected to decline, then this usually is a bad thing; however, if the market is supposed to increase, then this can be a good thing. The general time frame for closing dates can be from a few months to a few years. Make sure that you clarify when the expected closing date is supposed to be so that you can plan your future life in the home.
Location, Location, Location Choosing a lot and a floor plan should not be taken lightly. The house you choose will remain your home for a number of years, so it is a good idea to cover all the variables. Will you have a walkout basement? Will you be south, north, east, west facing? Do you want a corner lot? Do you want to be by a ravine? Is it on a hill? Visit the lot before deciding on the lot you want.
Floor Plans Choosing a floor plan is something that you should think about for awhile. A home should be convenient. Washroom placement should be optimized. Bedrooms should have a certain amount of space. The main floor should be enough room to host parties. The rooms should flow easily between the different rooms. The floor plans should be inviting. Subtle differences in the floor plans can make large differences in how the house operates. Make sure you study floor plans before deciding.
A new construction property has several new elements to consider. Before buying a new construction, make sure to take plenty of time to review your options and to ensure that you are making the right decision. The neighborhood may take years to mature, but in the long run it could pay off.
Did you buy a new construction? How was your experience? Leave your response in the comments below.
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25 Things to Look for when Picking a House to Own
Posted by Top Home Loans in Property Management, Real Estate on June 16, 2010
The following is a list of 25 things that are critical to finding out about a property before making an offer on the location.
1. Location, location, location – critical to the property value and your quality of life.
2. Age of the property. How old is the property?
3. What is the average income and economic class of the neighborhood? This should be in line with your family.
4. How much are the condo fees? Utilities? Property tax? This is critical for determining the affordability.
5. How many days on the market has the property been listed? Long listings usually mean problems.
6. Liens against the property or title issues? Make sure you are not on the hook.
7. What is the square footage of the property? The house?
8. How many owners have lived in the property?
9. Why is the seller leaving the property?
10. What types of renovations have been completed in the past ten years?
11. Is there local schools? Shops? Amenities?
12. How does the house look from the curb side? Any issues?
13. Is the house in line with the neighborhood? More expensive? Less expensive?
14. What does your spouse think of the property? What are their opinions?
15. What types of doors and windows are in the home? When will they need to be replaced?
16. What type of flooring is in the property?
17. Is there any foundation issues?
18. What has the price history of the property been?
19. Is the property in a convenient location?
20. Is the layout of the house convenient? Are rooms located appropriately?
21. Is it a house you could live in for at least five years?
22. Can you afford it easily? Do you have enough money upfront? What if you lose your job?
23. Will it last? Will it sell for more than you bought it for?
24. Is there a bidding war? Is the property in high demand?
25. Do you love it? Is it a good deal?
Do you have any other mandatory questions you ask when buying a house? What makes up your mind when buying a house?
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New Home Purchase Plus Improvements; How to Improve your Home
Posted by Top Home Loans in Mortgage Advice, Real Estate on April 26, 2010
When purchasing a new property, many home buyer’s want to but a property that they can fix up; however, this may risky. If the person does not have the required capital, then there are many pitfalls in getting the required capital to complete the required work. There are several methods to get the funds; however, each method comes with its own problem.
The first method is the CMHC program, purchase plus improvements. This program allows the borrower to get 95% of the property value after renovations on the property. The property is initially valued before the renovations are completed, the borrower must then complete the renovations on their own. This requires to have the funds to complete the renovations on their own. Then when the renovations are complete, the borrower would then be reimbursed the amount of the renovations. If the house does not come into value, then the borrower may be out the cost of the renovations. This is very dependent on the market, and if the housing market increases or decreases, then this could affect the amount of money the borrower could expect to receive.
The second option is to refinance on the borrowers own after the renovations have been completed. This, in most cases, will also require that the borrower comes up with their own money upfront. It is also subject to the same market forces as well. If the market increases, decreases, or stays the same, then this can affect how much the borrower will get back from the proceeds of the refinance. Also, mortgage insurers have changed the rules for refinancing. Now, borrowers can only refinance to a maximum of 90% of the property value. This means that most new home owners won’t be able to refinance for their first five years of their mortgage.
The other option is to borrower the funds from an unsecured line of credit or a loan. Unfortunately, this does not work well either because it will become another bill for the home owner. At a time when the home owner will want to limit their bills as much as possible, this can become a burden to the borrower. They will be able to get the funds upfront; however, their monthly debt obligations may be too much for them to be able to make their mortgage payments, and support their family.
The best method to avoid the required renovations is to by new or to buy a house with plenty of renovations. The house must be up to date, and the upkeep must be minimal on the repairs.
Television made house flipping very trendy; however, this is not the case unless the buyer has a lot of income to back up the home purchases. It has become progressively more difficult to renovate properties, and for most home owners, trying to do something like this will end up costing a lot of money. It is usually easier to buy complete and skip the renovations unless you have the cash to back this up.
Would you do home renovations without the money? How much money do you put into your house annually?