There are few purchases in life that carry the financial and psychological weight of buying a home. Whether you are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids have gone, it is important to understand the ground rules for success in the world of buying a home.
Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise decision in home buying can greatly enhance the overall value of the investment. It is necessary to learn all you can about the world of home buying and mortgages before setting out to purchase the home of your dreams.
While there are plenty of web sites designed to help first time homeowners learn all they can, most financial experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.
When buying a home it is often best to use a systematic approach as this is often the best way to be sure that all decisions are based on information and reason, not on impulse or emotion. Buying a home can be an emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud your judgment.
There are five basic ground rules when it comes to buying a home and shopping smart, and they are:
<b>#1 – Get your financing before you get your home</b>
There are few things in life as disappointing as losing out on the home of your dreams due to not being able to secure funding. While the desire to get out there are search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.
Getting the financing ahead of time has a number of important advantages, including knowing how much you can buy and gaining more respect from the listing agents. By knowing how much home you can afford before you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more than willing to show you the homes in your price range.
It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process. These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which mortgage is the best choice for their needs.
<b>#2 – Look at the community, not just the home</b>
It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with the local climate and lifestyle. It is crucial to determine the areas of town that are most desirable, and to consider things like distance from work and local shopping opportunities.
We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town, as well as by talking to other residents.
<b>#3 – Be fair with your first offer</b>
Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully evaluate the local market, and to compare the asking price of the home with what similar houses in the neighborhood have sold for.
Comparing the sales of comparable homes, what are known as “comps” in the industry, is one of the best ways to determine what is fair, and to make sure that you neither overpay or underbid on the property.
<b>#4 – Always get a home inspection</b>
Always investigate the home for any possible defects before making an offer. Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.
To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home inspectors rely on word of mouth advertising.
<b>#5 – Do not alienate the sellers of the home</b>
Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller. It is important to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the sale.
Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment for seller and buyer alike.
Filed under Buying a Home, Credit, Mortgages by on Sep 2nd, 2010. Comment. 
Brazil is a country that offers plenty of opportunities to the real estate investor. With cities like Rio de Janeiro, Sao Paolo, Brasilia and Belem taking the lion’s share of the investment of real estate experts, it is no wonder that acquiring property in Brazil is no more a myth. Backed by a strong economy, Brazil ranks among the world’s best 5 developing economies. The inflation is low and foreign exchange rates favorable. As a popular location for property investment, there is no dearth of properties for sale in Brazil. The President is a progressive leader who is open to the changing needs of the market.
The value of increased domestic investment is recognized and with multiple new policies introduced since 2003, Brazil is a fast emerging global economic leader. There are a lot of properties for sale in Brazil and the number of investors who are coming to the land is increasing with a steep and steady growth curve. The quality of life is relaxed and so is the inviting climate. This is why holiday makers flock to the country and once they take a tour of the cities, they take interest in buying property in Brazil. An added benefit is the absence of political threats or war.
With a reduced cost of living, it is said that in Brazil, you can pay a caretaker and run a household – all for £50 a month. As an emerging regional powerhouse, Brazil is attracting the attention of the people as a result of two upcoming international events – the Soccer World Cup 2014 and the 2016 Olympic Games. The market for property in Brazil is being boosted by massive investments on infrastructure and the increased demand for housing, both rentals as well as occupancy. Since 2006, there has been an enormous increase in property sales and launches.
The demand for properties for sale in Brazil, especially in the residential category, has fueled a boom of real estate construction. Though temporarily affected by the economic slowdown of 2008, the real estate boom in the country has resumed immediately with Rio de Janeiro clinching the bid to host the Olympics 2016. In the third quarter of 2009, the general price of the new launches increased by 25% to $1946 per m sq from what it was a year back, as did the price of individual units and their sales. The new finance system created by financial reforms allowed people to convert their incomes into mortgage payments.
Filed under Buying a Home by on Aug 29th, 2010. Comment.
When the time comes to determine an adequate value for your home, you have to set aside any attachments and begin in the tedious steps of looking at the property as a marketable item. Some tried-and-true tactics can offer you a good idea of what your home will go for on the open market. Real estate agents, leasing agents and your neighbors are excellent places for advice to raise your chances for grasping how homes in your neighborhood are priced and packaged to entice the buyer attention.
Referred to as a CMA, this document is provided by real estate professionals and sorts the prices of similar properties presently on the market or that have been recently sold categorized by neighborhood. Realtors are the best source for this examination since they attend real estate training courses that deal particularly with assessing homes. Calculating the floor area of the houses listed on the CMA may help you determine your property fundamental worth. Make certain to concentrate on properties within your area and no more than 1/2 mile radius, except for a rural home. Study the listings to see for any expired or withdrawn properties and determine if they had to have a price reduction to go back up for sale to establish whether the current market is “hot” or “cold”.
Once you have done the initial research, ask real estate agents and expert appraisers to review your home and offer you their opinion of its current market value. Contract their answers to the values you discovered in the CMA to establish the price range you will be able to work with. Make sure to ask their advice on the current real estate market, lending rates, and popular buying months to ensure you have chosen the best time to list your property. Keep an open mind to any suggestions on how to improve the property to make it more appealing to buyers. Your home may be a parcel of Barrie Ontario real estate in therefore it would be advantageous to advertise its proximity to Lake Simcoe.
No doubt real estate agents have a tough time predicting the housing market, but even regular homeowners can see if values are falling — that points to a cooling trend and means you may need to consider up to a 3% discount if you have to sell soon. If you see any indicators that the market is about to adjust, consider the wisdom of holding back as opposed to of having it underpriced in a rising market. Of course, you risk having the market decline even more with this plan. Now if you are dealing with a thriving market with a substantial inventory of low priced properties, you may have to consider how you can lure in more buyers. If you have a Brampton house for sale you need to ensure your home stands out for others on the market.
Although your house is filled with memories and your own taste, it is critical to be impartial and review your home through the eyes of a home buyer. Consider whether you able to find any flaws that might be used as bargaining chips by a sharp buyer. If you have compelling marketing points such as a breathtaking view or desirable area, make sure and eemphasize this in your promotional material and utilize these value added features as a negotiating tool or your own.
Filed under Buying a Home, Investing, Personal Finance by on Aug 24th, 2010. Comment.
Turkey continues to buck global trends with 12% GDP growth rates generated for Q1 2010, domestic banks increasing the availability of credit by up to 30% and now levels of FDI in Istanbul are up by 27% according to the Istanbul Chamber of Commerce (ITO).
Istanbul, which is said to be Turke’s powerhouse. has become a honey pot for foreign investors with the amount of international investors seeking to establish businesses or expand their operations in Istanbul by South Africa, Australia, Ireland, Scandinavia and the UAE all taking advantage of Istanbul’s significant housing shortage and investing in the domestic property market.”
In the first half of 2010 over 1,400 overseas investors set up companies within Istanbul with the total value of capital investments made in this period up by a remarkable 44.68% compared to the last half of 2009.
As Worboys remarks,
“International investor confidence in Turkey and especially Istanbul remains high. Being located outside the troubled euro zone is of great appeal and Turkey appears to have avoided the negative effects from neighbouring Greece.”
Gross Domestic product forecasts for the remainder of 2010 currently sit at a healthy 6-7% and with extra support for candidacy from the British Prime Minister, David Cameron, on his recent visit, accession to the EU seems increasingly more likely for Turkey.
For those interested in investing in Istanbul then one particular opportunity should not be missed.
No1 Knightsbridge comprises 1, 2 and 3 bedroom luxury Istanbul apartments situated in the burgeoning suburb of Beylikduzu, on the European side of the city. Currently Istanbul has a housing shortage of some 250,000 units per annum and so the demand for quality rental accommodation is high. Only 20% of units are available to
overseas buyers and can be purchased from as low as £23,250 with 70% finance available for European Union members.
For additional information simply call the experts at Experience International on +44 (0) 207 321 5858 or visit Experience-International.co.uk.
Filed under Buying a Home, Investing, Personal Finance, Wealth Building by on Aug 23rd, 2010. Comment.
The federal government ended their generous tax credit of $8000 at the end of April of 2010 but in California at least, first time home buyers have another option. The State of California, under an initiative from legislators and Governor Arnold Schwarzenegger have extended and expanded the California first time home buyers’ tax credit to $10,000 at least through 2011. This is great news for many Californians and actually covers more than first time home buyers but to all who purchase new or existing homes this coming year. This terrific incentive should help to revitalize a home buying market that has dropped precipitously in the last two to three years due to the bursting of the real estate market bubble.
For first time home buyers there has never been a better time to purchase, though they need to manage their expectations. Home values have dropped in California and interest rates are at all time lows. The main problem is still the availability of credit and the fact that lenders have made it very difficult for borrowers to qualify. This was a reaction to the too loose lending practices of the past decade which led to the wave of foreclosures that have endangered our economy. Lenders have money to lend, but they have placed super tight restrictions on giving loan approvals. Most lenders require very high credit scores and steady, rock-solid employment as well as seasoned assets.
There are a lot of first time home buyers down payment assistance programs available, especially in California that are well worth looking into. In the San Francisco Bay Area many of the counties and cities have collaborated on bringing these great programs to buyers. In the City of Alameda for instance, first time home buyers who have a combined household income of less than 80% of the median income for the county may qualify for a loan amount maximum of $80,000. The payments are deferred for fifteen years at which time there is a balloon payment due. No interest is charged for the first five years and after that the city takes a percentage of shared appreciation. This is a second position loan.
In the city of Antioch, where you can get a huge house for very little money, first time home buyers may qualify for down payment assistance of up to $30,000. Once again there is a shared appreciation clause that allows the buyer to sell the house at a future date and pay a portion of the accrued appreciation equity back to the city.
Besides the city programs, the State of California under the CalHFA department offers great assistance programs like CHDAP which will give up to $15,000 in assistance for first time home buyers. You can also stack all of these programs including MCCs or Mortgage Credit Certificates which are credits of 15% of the interest payments made on home loans. This helps many borrowers to qualify by effectively raising their take home pay.
Filed under Buying a Home by on Aug 22nd, 2010. Comment.
In California, many cities and communities are offering down payment assistant (DPAs or DAPs) programs for first time home buyers. First time home buyers are defined as those people that have not had a mortgage in the last three years. The DPAs from these different cities and from the State of California can add up to quite a bit of money. In these tough times the assistance comes as great news to young couples and people who are tired of throwing their money away every month on rent. Paying rent is like paying someone else’s mortgage for them. And the difference between renting and owning is usually not all that much after you look at all of the combined benefits of owning. Everyone knows that when you have a mortgage you can deduct a percentage of the interest you pay each year on the loan from your income taxes. Few are aware that right now the State of California is giving first time home buyers a $10,000 tax credit which is spread out over three years. That is a lot of money and it is definitely stimulating the home buying market right now when the economy needs it most. But that is not all the assistance that first time home buyers can count on. Many cities and municipalities around the state are offering down payment assistance programs. The city of San Leandro, California, for instance will give first time home buyers who qualify up to $30,000 in down payment assistance. This is real cash that goes towards purchasing the home. The city of Hayward has a similar program and the City of Alameda goes even further with a down payment assistance of up to $50,000. Most of the down payment assistance programs require that the borrowers attend a city sponsored first time home buyers seminar which usually lasts around five hours and where they get a lot of useful information about purchasing a home. Borrowers need to qualify for a FNMA (Fannie Mae) underwritten first mortgage at or below 80% loan to value. For example, if the property that they are purchasing has a price of $300,000, then the first loan amount would have to be $240,000. The remaining $60,000 would be the down payment portion of the deal. Throw in the city DPA of $30,000 and now all you need is another $30,000 to get into the house. There are other programs as well like CHDAP, run by the State of California. This program will contribute up to 3% of the purchase price for first time home buyers. First time home buyers need to have credit score minimums of 640 but that is actually very low and most borrowers have no trouble with that. They also must come up with 3% of their own cash to purchase but the gifting rules are very lax and that can come from other sources. Most programs allow seller contributions to closing costs also. All in all, this is a great time to be first time home buyers in California. If you do your homework right, you can end up in a nice home with very little out of your own pocket.
Filed under Buying a Home by on Jul 6th, 2010.