When hunting for a house for sale many questions come to the mind of the buyer. The house for sale falls under a special category and also a special type.
The house for sale in the real estate market may belong to either of three categories - a house for sale with a clear title, a house for sale that is under the cloud of foreclosure and a house for sale that is foreclosed upon by the government.
In the current mood of the real estate market in USA the general category of house for sale with a clear title is in the background being hard pressed by the onrush of foreclosed units that are pushing down prices drastically. But although this category of house for sale may be relatively costly it is safer as regards papers and conditions.
Under the foreclosure house for sale category there are three divisions - the pre- foreclosure house for sale, the house for sale at the foreclosure auction and the REO or real estate owned house for sale after being repossessed by the banks. Short sale takes place during the pre-foreclosure stage. Prices are low and the condition of the house is in good shape. The cheapest house for sale are those found in the foreclosure auction but the condition is the worst and one is not allowed to inspect the units as these are sold on as-is basis. The REO units are clear of all liens but the price may be slightly higher. However banks are offering huge discounts to offload the overwhelming number of repossessed homes they are sitting on.
There are many types of houses for sale in the real estate market. The Duplex generally refers to two stacked apartments on different floors. The two family-homes is a small apartment house. In USA an apartment must have bathing, cooking and sleeping facilities. These are sometimes referred to as flats. An apartment tower consists of block or flats. A condo is an individual apartment with certain common areas. A garden flat is at ground level in a multi-level building. The penthouse is on the top level of a multistory building. One of the most popular is the studio or bachelor apartment that consists of single room with a kitchenette and a bath. The lofts or the warehouse conversions are also popular. The garage apartment is atop a garage and if the garage is not included then there is a separate entry to it.
Thursday, July 23, 2009
Wednesday, July 8, 2009
7 Tips on Real Estate
Inch your way in the world of real estate investment with the help of specialists.
Rental and Sales
You make money when you buy a property, not when you sell. If you pay too much for a property that you never have to recover as many times as you have had a better engine negotiations. The trick is to have a formula, such as not paying six to eight times the rent that you plan to make the first year. Some experts say the key is to make sure your rental income will cover costs. Anyway, sure there's enough cash reserve on the left for more surprises. Rents are not guaranteed. What happens when your tenant is more than you? It is better to have savings of at least eight months of payments to emergencies.
Get a partner
Real estate investments tend to require a huge amount of investment capital. Expert advice for an investment partner to help split the bill and risk. It need not be 50-50, but it does need someone to trust with your life, because you'll be trusted with your money.
Active or passive?
A point is not an asset unless it produces income. Anything that is a product liability costs. In other words, a person can buy a house think it is an asset. In fact, the house is a responsibility because the person would work to maintain the property and the home loan, plus interest. However, a home can be a form of long-term investment if you do the math right.
Learn from experts
What to buy, where to buy, and how to make a good investment all boils down to research. Talk to friends, real estate investors, financial advisers and family members. The final choice of your course, but talking to people and do your research online will help you make the best choices.
Savage Salvage
If you are in a situation of being lost, unless you see a recovery in the next 12 months, it is best to make your loss and review your investment strategy. If this is a home, spruce it up with a new coat of paint and arrange appointments with other buyers. An expert tip will arrange appointments with all interested parties at the same time, to generate interest and refine the results on all property has to offer.
Opportunity vs. Risk
The difference between opportunity and risk is to make an informed decision. Large companies conduct due diligence on a purchase and the same individuals. Run a check on the reputation of the sponsor, location in the long term, the proposed developments, improved infrastructure, legal issues and price levels. The only difference between amateurs and professionals is the amount of research.
All about mathematics
Real estate investment is not rocket science, but you must be able to do the math. Overstatement of revenue and expenditure underestimate May very well make a profit loss. Turnover should include your cash management, and funds generated by the property. Consider also that the asset and the leverage of funds you have already give you the profit margins higher. For example: you bought a property of U.S. $ 100, with 000 species. After a year, well appreciated by 10% and is now valued at USD110, 000. The sale of this house you earn 10% return on investment after 1 year. Otherwise, you can use the $ 100 U.S., 000 as a deposit of USD1 million home, where you can take a mortgage on the balance. After a year of 10% to assess the value, it is now worth USD1.1 million. Of course, you must take into account legal fees, laws, if they let you transfer the property in a short period of time.
Rental and Sales
You make money when you buy a property, not when you sell. If you pay too much for a property that you never have to recover as many times as you have had a better engine negotiations. The trick is to have a formula, such as not paying six to eight times the rent that you plan to make the first year. Some experts say the key is to make sure your rental income will cover costs. Anyway, sure there's enough cash reserve on the left for more surprises. Rents are not guaranteed. What happens when your tenant is more than you? It is better to have savings of at least eight months of payments to emergencies.
Get a partner
Real estate investments tend to require a huge amount of investment capital. Expert advice for an investment partner to help split the bill and risk. It need not be 50-50, but it does need someone to trust with your life, because you'll be trusted with your money.
Active or passive?
A point is not an asset unless it produces income. Anything that is a product liability costs. In other words, a person can buy a house think it is an asset. In fact, the house is a responsibility because the person would work to maintain the property and the home loan, plus interest. However, a home can be a form of long-term investment if you do the math right.
Learn from experts
What to buy, where to buy, and how to make a good investment all boils down to research. Talk to friends, real estate investors, financial advisers and family members. The final choice of your course, but talking to people and do your research online will help you make the best choices.
Savage Salvage
If you are in a situation of being lost, unless you see a recovery in the next 12 months, it is best to make your loss and review your investment strategy. If this is a home, spruce it up with a new coat of paint and arrange appointments with other buyers. An expert tip will arrange appointments with all interested parties at the same time, to generate interest and refine the results on all property has to offer.
Opportunity vs. Risk
The difference between opportunity and risk is to make an informed decision. Large companies conduct due diligence on a purchase and the same individuals. Run a check on the reputation of the sponsor, location in the long term, the proposed developments, improved infrastructure, legal issues and price levels. The only difference between amateurs and professionals is the amount of research.
All about mathematics
Real estate investment is not rocket science, but you must be able to do the math. Overstatement of revenue and expenditure underestimate May very well make a profit loss. Turnover should include your cash management, and funds generated by the property. Consider also that the asset and the leverage of funds you have already give you the profit margins higher. For example: you bought a property of U.S. $ 100, with 000 species. After a year, well appreciated by 10% and is now valued at USD110, 000. The sale of this house you earn 10% return on investment after 1 year. Otherwise, you can use the $ 100 U.S., 000 as a deposit of USD1 million home, where you can take a mortgage on the balance. After a year of 10% to assess the value, it is now worth USD1.1 million. Of course, you must take into account legal fees, laws, if they let you transfer the property in a short period of time.
Wednesday, July 1, 2009
U.S. mortgage applications fall to 7-month low
The volume of mortgage applications filed last week dropped a seasonally adjusted 18.9% from the week before, as refinancing activity plunged, the Mortgage Bankers Association reported Wednesday.
U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday.
The drop does not bode well for the hard-hit U.S. housing market, which has been showing some signs of stabilization, with sales rising and home price declines moderating in many regions of the country.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications USMGM=ECI, which includes both purchase and refinance loans, for the week ended June 26 decreased 18.9 percent to 444.8, the lowest reading since the week ended Nov. 21, 2008.
Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, said mortgage rates are just one factor driving potential borrowers.
"Rising unemployment, concerns about job security, potential buyers' inability to sell their existing homes and problems with appraisals coming in too low are all weighing on demand," he said.
"The government needs to take more aggressive action to bring mortgage rates back down to below 5 percent as that seems to be a key level for the market," he said.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.34 percent, down 0.10 percentage point from the previous week, but significantly higher than the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990.
Mortgage rates remained above 5 percent for a fifth straight week, but were well below year-ago levels of 6.33 percent.
Thirty-year mortgage rates had mostly been on a downward trend since the Federal Reserve unveiled its plan to buy mortgage-backed debt in late November. But the Fed met resistance in the bond market in late May and early June.
Treasury yields, which act as a benchmark for mortgage rates, rose sharply during that period. Treasury yields, however, have come down recently, allowing rates to fall.
The MBA's seasonally adjusted purchase index USMGPI=ECI fell 4.5 percent to 267.7.
The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 9.2 percent.
WEEKLY REFINANCING ACTIVITY PLUNGES
The Mortgage Bankers seasonally adjusted index of refinancing applications USMGR=ECI decreased 30.0 percent to 1,482.2, also the lowest level since the week ended Nov. 21, 2008.
Refinancings accounted for 46.4 percent of applications, down from 54.0 percent the previous week and significantly lower than the peak of 85.3 percent in the week ended Jan. 9
The U.S. housing market is in the worst downturn since the Great Depression and its impact has rippled through the recession-hit economy, as well as the rest of the world. Economists contend that the economy might not emerge from its slump unless the housing market stabilizes.
The shares adjustable-rate mortgage activity increased to 4.3 percent in the latest week, up from 4.1 percent the previous week.
Fixed 15-year mortgage rates averaged 4.81 percent, down from 4.93 percent the previous week. Rates on one-year ARMs decreased to 6.52 percent from 6.54 percent
U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday.
The drop does not bode well for the hard-hit U.S. housing market, which has been showing some signs of stabilization, with sales rising and home price declines moderating in many regions of the country.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications USMGM=ECI, which includes both purchase and refinance loans, for the week ended June 26 decreased 18.9 percent to 444.8, the lowest reading since the week ended Nov. 21, 2008.
Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, said mortgage rates are just one factor driving potential borrowers.
"Rising unemployment, concerns about job security, potential buyers' inability to sell their existing homes and problems with appraisals coming in too low are all weighing on demand," he said.
"The government needs to take more aggressive action to bring mortgage rates back down to below 5 percent as that seems to be a key level for the market," he said.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.34 percent, down 0.10 percentage point from the previous week, but significantly higher than the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990.
Mortgage rates remained above 5 percent for a fifth straight week, but were well below year-ago levels of 6.33 percent.
Thirty-year mortgage rates had mostly been on a downward trend since the Federal Reserve unveiled its plan to buy mortgage-backed debt in late November. But the Fed met resistance in the bond market in late May and early June.
Treasury yields, which act as a benchmark for mortgage rates, rose sharply during that period. Treasury yields, however, have come down recently, allowing rates to fall.
The MBA's seasonally adjusted purchase index USMGPI=ECI fell 4.5 percent to 267.7.
The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 9.2 percent.
WEEKLY REFINANCING ACTIVITY PLUNGES
The Mortgage Bankers seasonally adjusted index of refinancing applications USMGR=ECI decreased 30.0 percent to 1,482.2, also the lowest level since the week ended Nov. 21, 2008.
Refinancings accounted for 46.4 percent of applications, down from 54.0 percent the previous week and significantly lower than the peak of 85.3 percent in the week ended Jan. 9
The U.S. housing market is in the worst downturn since the Great Depression and its impact has rippled through the recession-hit economy, as well as the rest of the world. Economists contend that the economy might not emerge from its slump unless the housing market stabilizes.
The shares adjustable-rate mortgage activity increased to 4.3 percent in the latest week, up from 4.1 percent the previous week.
Fixed 15-year mortgage rates averaged 4.81 percent, down from 4.93 percent the previous week. Rates on one-year ARMs decreased to 6.52 percent from 6.54 percent
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