In 2005, 23% of all homes sold were investment properties, according to the National Association of Realtors. There's no question that investing in real estate can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.
Choose the Right Neighborhood
Just like with any other real estate purchase, location is all-important. Whether you're buying an investment property to rent or to renovate for resale, a large part of your success will come down to the neighborhood you buy into. Developing or undervalued neighborhoods are both good prospects for investment buying. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to your own home is a good idea so that you don't have to spend a lot of time traveling to the property.
Don't forget the old rules still apply - buy the worst house in the best street, not the best house in the worst street. You don't want to end up buying a property that's worth significantly more than neighboring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.
Foreclosures
Buying foreclosures can be risky, much more so than buying property in the traditional fashion. However, if you're aware of the risks beforehand and take steps to minimize them, you can end up with a great deal. Before you even consider buying in this way, you should be very familiar with foreclosure laws in your state, in addition to knowing as much as possible about the neighborhoods you're interested in.
To find foreclosures, look in your local newspapers for advertisements with key words such as "bank-owned," "foreclosed," or "REO" (real estate owned). Look on lender websites to check for foreclosure listings, and call lenders and ask to speak to someone who handles foreclosures.
As a final caveat - don't buy anything without having it inspected first, no matter how good the property looks on the surface. Property inspection is the best way of ensuring you end up with a profitable deal.
Why Good Credit is Important
When it comes to financing the purchase of rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on loan payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good loan, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible.
It's also important to ensure you have a good-sized cash reserve left over after you've bought your property, to help pay for surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).
Get to Know the Tax Laws
Owning investment properties can provide big tax benefits. Getting to know your state and federal tax laws is important for maximizing the profits you can make from investing in real estate. For example:
*Depreciation on an investment property is tax-deductible at an annual rate of 3.64% of the home's market value.
* Mortgage interest on investment properties is tax-deductible.
Do your homework, choose your properties carefully and watch your investments grow!
Saturday, November 8, 2008
Tuesday, November 4, 2008
How to Give Your Home a Positive Image with the Right Scents!
Taking advantage of a smell’s strong, almost subconscious effects on the brain is an easy way to accentuate your home’s positive image.
For a warm, inviting scent, boil a pot of water on the stovetop, pour in a teaspoon of vanilla, and add some cinnamon or cloves. The aroma of fresh-baked bread or cookies is another sure-fire winner.
While some smells create positive images, others create negative impressions and should be avoided. Cigarette or cigar smoke can make even a clean house seem dingy.
To absorb airborne smells, place a small bowl with half an inch of white vinegar in the room and let it sit for a few days. Vinegar sprayed on carpets, drapes or upholstery can also help with absorbed odors. (Be sure to test first on an inconspicuous spot to ensure it doesn’t change the color.) A thorough cleaning can also help remove smoking or pet odors.
Use a lemon-scented wax to polish wood surfaces for a fresh, clean aroma. Bathrooms seem cleaner and brighter when scented candles are lit.
Please call or send an email if we can provide other tips to help you create a comfortable environment in your home or answer any real estate related questions. We appreciate the opportunity to be your trusted real estate resource.
For a warm, inviting scent, boil a pot of water on the stovetop, pour in a teaspoon of vanilla, and add some cinnamon or cloves. The aroma of fresh-baked bread or cookies is another sure-fire winner.
While some smells create positive images, others create negative impressions and should be avoided. Cigarette or cigar smoke can make even a clean house seem dingy.
To absorb airborne smells, place a small bowl with half an inch of white vinegar in the room and let it sit for a few days. Vinegar sprayed on carpets, drapes or upholstery can also help with absorbed odors. (Be sure to test first on an inconspicuous spot to ensure it doesn’t change the color.) A thorough cleaning can also help remove smoking or pet odors.
Use a lemon-scented wax to polish wood surfaces for a fresh, clean aroma. Bathrooms seem cleaner and brighter when scented candles are lit.
Please call or send an email if we can provide other tips to help you create a comfortable environment in your home or answer any real estate related questions. We appreciate the opportunity to be your trusted real estate resource.
How to Evaluate a Home’s True Potential
If you’re thinking about buying a home, you’ve probably developed a pretty clear mental picture of what your new home should be like. But remember that even a home that’s not in ideal condition can still have great potential.
Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:
The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.
Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.
The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.
Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.
If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.
If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.
Please call or send us an email if we can help with more ideas on how to see past the surface when looking at a potential new home.
Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:
The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.
Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.
The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.
Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.
If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.
If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.
Please call or send us an email if we can help with more ideas on how to see past the surface when looking at a potential new home.
Monday, October 27, 2008
8 Ways to Make a Home Sell Faster!
Simple fixes and staging practices can focus buyers' attention in the right places and keep them from getting sidetracked by personal items in the home.
Here are some staging suggestions from Deborah Ehrlich-Layne of Staging Plus in Tampa, Fla., Handyman Matters, and HGTV's The Stagers.
Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
Pack up the too-personal. Don't leave toiletries on the counter. Stash family photos.
Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
Make sure things work. Dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home's appeal.
Think "white-glove clean." Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
Make sure the front door is clean and the hardware polished. Power-wash walkways.
Store furniture that makes rooms feel crowded.
Show every room for the kind of room it is. Maybe you've turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.
Source: The Dallas Morning News (09/05/08)
Here are some staging suggestions from Deborah Ehrlich-Layne of Staging Plus in Tampa, Fla., Handyman Matters, and HGTV's The Stagers.
Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
Pack up the too-personal. Don't leave toiletries on the counter. Stash family photos.
Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
Make sure things work. Dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home's appeal.
Think "white-glove clean." Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
Make sure the front door is clean and the hardware polished. Power-wash walkways.
Store furniture that makes rooms feel crowded.
Show every room for the kind of room it is. Maybe you've turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.
Source: The Dallas Morning News (09/05/08)
First-Time Buyer Tax Credit: A Reason to Buy Now!
The home ownership tax credit that the federal government created earlier this year is a hard-won tool at your disposal to encourage your customers to jump off the fence and get into the home buying market.
When you combine the tax credit with today’s continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for your customers to buy now.
How the Tax Credit Works
The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.
It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.
Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.
Any house is eligible as long as it’s a primary residence and is in the United States.
Buyers Have 15 Years to Pay Back
To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.
There’s one restriction on the type of financing that your customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if your clients are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.
Be a Resource for Clients
NAR Government Affairs has created two helpful documents that you can share with your clients to help them learn more about how the tax credit works. The documents are on downloadable and printable PDFs:
First-time home buyer tax credit chart
First-time homebuyer tax credit FAQ
The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.
For additional local real estate information, information about me and my services, to request home listings by E-Mail, to request a market analysis on your current home, or to tour the MLS Listings please visit my web sites at www.RichmondVAHomes4Sale.com or www.e-RichmondHomes.com.
When you combine the tax credit with today’s continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for your customers to buy now.
How the Tax Credit Works
The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.
It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.
Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.
Any house is eligible as long as it’s a primary residence and is in the United States.
Buyers Have 15 Years to Pay Back
To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.
There’s one restriction on the type of financing that your customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if your clients are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.
Be a Resource for Clients
NAR Government Affairs has created two helpful documents that you can share with your clients to help them learn more about how the tax credit works. The documents are on downloadable and printable PDFs:
First-time home buyer tax credit chart
First-time homebuyer tax credit FAQ
The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.
For additional local real estate information, information about me and my services, to request home listings by E-Mail, to request a market analysis on your current home, or to tour the MLS Listings please visit my web sites at www.RichmondVAHomes4Sale.com or www.e-RichmondHomes.com.
Sunday, October 26, 2008
Consumer Tip: Home Mortgage Interest!
You can save thousands of dollars in interest on your home, and pay it off in much less than the term of the loan, by just paying a little extra with each monthly payment. For example, if you had a home mortgage of $100,000, payable at 7% per annum interest, by paying just an extra $110 monthly toward the principal, you would save $53,439 in interest payments over the life of the loan. You would save thousands of dollars, and would own your home, free and clear, in just 20 years.
If you would like to pay a little extra on your loan principal monthly, and want to know how much you could save, call Mohamed Mekhimar. We will run an amortization schedule for you and/or refer you to our preferred mortgage specialist.
If you would like to pay a little extra on your loan principal monthly, and want to know how much you could save, call Mohamed Mekhimar. We will run an amortization schedule for you and/or refer you to our preferred mortgage specialist.
Some Easy Ways To Maintain Home Values!
The easiest way to maintain and improve your home's value is consistent maintenance and repair. Keeping up with seasonal issues like inspecting your roof for weather damage in the spring or cleaning gutters and downspouts in the fall keeps the time you have to spend on these tasks at a minimum. When you're thinking about the value of your home, also keep these things in mind:
__ Overall condition of your property. In addition to the above tasks, inspect your property regularly and maintain a clean home. With the pace of life getting faster, many people just don't have the time to "fix up" a new home. They want a home they can move into easily. Keeping up with maintenance and small repairs also allows you more time to enjoy your property.
__ Bedrooms and bathrooms. How many are there? Have they been remodeled or updated?
__ Outdoor area. How big is the yard? Is there a deck or patio?
__ Garage. 1, 2 or 3 cars?
__ Kitchen. How up-to-date is it? Has it been remodeled?
__ Is there a family room? How big is it?
Visit The Davidson Team at www.WenatcheeHouses.com for home maintenance tips, buying and selling tips, MLS property searches, town and community information and more!
__ Overall condition of your property. In addition to the above tasks, inspect your property regularly and maintain a clean home. With the pace of life getting faster, many people just don't have the time to "fix up" a new home. They want a home they can move into easily. Keeping up with maintenance and small repairs also allows you more time to enjoy your property.
__ Bedrooms and bathrooms. How many are there? Have they been remodeled or updated?
__ Outdoor area. How big is the yard? Is there a deck or patio?
__ Garage. 1, 2 or 3 cars?
__ Kitchen. How up-to-date is it? Has it been remodeled?
__ Is there a family room? How big is it?
Visit The Davidson Team at www.WenatcheeHouses.com for home maintenance tips, buying and selling tips, MLS property searches, town and community information and more!
Saturday, October 25, 2008
Richmond Election Information!
Richmond voters, if you think you’re too busy to get out and vote on Election Day or that your vote "won’t matter anyway," consider that just one vote ...
-made English the language of America instead of German (1776)
-approved American independence from England (1776)
-gave Thomas Jefferson the presidency (1800)
-admitted Texas (1845) and California (1850) into the Union
Presidential Race
Democrat: Barack Obama
Republican: John McCain
Independent: Ralph Nader
Libertarian: Bob Barr
Green: Cynthia McKinney
Constitution Party: Chuck Baldwin
U.S. Senate
Democrats: Mark Warner
Republicanss: Jim Gilmore
Libertarian: William Redpath
Independent Green: Glenda Parker
U.S. House of Representatives
1st District
Democrats: William Day
Republicans: Robert Wittman
Libertarian: Nathan Larson
2nd District
Democrats: Glenn Nye
Republicans: Thelma Drake
3rd District
Democrats: Bobby Scott
4th District
Democrats: Andrea Miller
Republicans: Randy Forbes
5th District
Democrats: Tom Perriello
Republicans: Virgil Goode Jr.
6th District
Democrats: Sam Rasoul
Republicans: Bob Goodlatte
Independent: Janice Allen
7th District
Democrats: Anita Hartke
Republicans: Eric Cantor
8th District
Democrats: James Moran
Republicans: Mark Ellmore
Independent Green: J. Ron Fisher
9th District
Democrats: Rick Boucher
10th District
Democrats: Judy Feder
Republicans: Frank Wolf
Independent: Neeraj Nigam
11th District
Democrats: Gerry Connolly
Republicanss: Keith Fimian
Independent Green: Joseph Oddo
-made English the language of America instead of German (1776)
-approved American independence from England (1776)
-gave Thomas Jefferson the presidency (1800)
-admitted Texas (1845) and California (1850) into the Union
Presidential Race
Democrat: Barack Obama
Republican: John McCain
Independent: Ralph Nader
Libertarian: Bob Barr
Green: Cynthia McKinney
Constitution Party: Chuck Baldwin
U.S. Senate
Democrats: Mark Warner
Republicanss: Jim Gilmore
Libertarian: William Redpath
Independent Green: Glenda Parker
U.S. House of Representatives
1st District
Democrats: William Day
Republicans: Robert Wittman
Libertarian: Nathan Larson
2nd District
Democrats: Glenn Nye
Republicans: Thelma Drake
3rd District
Democrats: Bobby Scott
4th District
Democrats: Andrea Miller
Republicans: Randy Forbes
5th District
Democrats: Tom Perriello
Republicans: Virgil Goode Jr.
6th District
Democrats: Sam Rasoul
Republicans: Bob Goodlatte
Independent: Janice Allen
7th District
Democrats: Anita Hartke
Republicans: Eric Cantor
8th District
Democrats: James Moran
Republicans: Mark Ellmore
Independent Green: J. Ron Fisher
9th District
Democrats: Rick Boucher
10th District
Democrats: Judy Feder
Republicans: Frank Wolf
Independent: Neeraj Nigam
11th District
Democrats: Gerry Connolly
Republicanss: Keith Fimian
Independent Green: Joseph Oddo
Which is Better for You: A New Home or a Resale?
When it’s time to make a move, one of the first decisions most people think about is whether to buy a brand new house or a previously-owned home. Here are some distinct advantages of each choice:
New house:
* Modern floor plans that could include a “great room,” bigger closets, more baths,
entertainment room, etc.
* The opportunity to choose upgrades and customize floor coverings, colors and more
* More energy-efficient insulation, windows and heating/cooling systems
* The added protection of a warranty from the home builder
Resale home:
* Existing features, including window treatments and mature landscaping
* Location -- existing homes are often closer to metropolitan areas instead of farther out in the suburbs
* Established neighborhoods and sense of community
* The opportunity to use an existing home as a base to remodel and create a unique property
Only you can decide if a brand new home or one with a few years on it is right for you. If you would like additional information on which option might work best for you, don’t hesitate to contact me with any questions.
New house:
* Modern floor plans that could include a “great room,” bigger closets, more baths,
entertainment room, etc.
* The opportunity to choose upgrades and customize floor coverings, colors and more
* More energy-efficient insulation, windows and heating/cooling systems
* The added protection of a warranty from the home builder
Resale home:
* Existing features, including window treatments and mature landscaping
* Location -- existing homes are often closer to metropolitan areas instead of farther out in the suburbs
* Established neighborhoods and sense of community
* The opportunity to use an existing home as a base to remodel and create a unique property
Only you can decide if a brand new home or one with a few years on it is right for you. If you would like additional information on which option might work best for you, don’t hesitate to contact me with any questions.
Which is Better for You: A Condo or a Single Family Home?
Did you know that condominiums are one of the fastest growing segments of the housing market? Owning a condo is perfect for those with busy lifestyles, little interest in home maintenance or landscaping chores or who frequently travel. Condos are a fine choice for a first home or when downsizing from a larger house.
Here are some pros and cons to consider:
Condo:
· Fewer maintenance requirements.
· Usually less expensive than a single family home.
· You own the space inside the walls.
· There can be more security with neighbors close by.
· The exterior of the building, landscaping, surrounding roads and driveways, and common areas all owned by the condo association, a group made up of all unit owners.
· Special assessments by the association for painting or repairs can be a substantial added expense.
Single family home:
· Usually offers more storage space.
· You own the interior as well as the exterior.
· You are responsible for all maintenance, landscaping and repairs.
· You usually don’t have to pay community dues or special assessments.
· You have room to grow plants, flowers, trees, veggies, etc.
Think about how your household may change over the next few years. Will you still need a larger home or will you have enough space in a condo? Or would you be happier in a smaller house with room for a garden?
For more information about real estate options in our market, call or email us. We’d be happy to provide you with that info via email or we can show you what is available.
Here are some pros and cons to consider:
Condo:
· Fewer maintenance requirements.
· Usually less expensive than a single family home.
· You own the space inside the walls.
· There can be more security with neighbors close by.
· The exterior of the building, landscaping, surrounding roads and driveways, and common areas all owned by the condo association, a group made up of all unit owners.
· Special assessments by the association for painting or repairs can be a substantial added expense.
Single family home:
· Usually offers more storage space.
· You own the interior as well as the exterior.
· You are responsible for all maintenance, landscaping and repairs.
· You usually don’t have to pay community dues or special assessments.
· You have room to grow plants, flowers, trees, veggies, etc.
Think about how your household may change over the next few years. Will you still need a larger home or will you have enough space in a condo? Or would you be happier in a smaller house with room for a garden?
For more information about real estate options in our market, call or email us. We’d be happy to provide you with that info via email or we can show you what is available.
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