Over the last few years, the interest rates of various investments have fallen and despite all the attempts taken to make the economy stable, millions of people had to extend their work years just to maintain the minimum standard of living. Yes, everything lost has its value, but one asset has only risen in spite of this recession – real estate. Most people dream about spending their retirement period in a calm and quiet place. A place where the crime rate is low and the entire surrounding is filled with intelligent people who are just living the much-needed peaceful and retired life. However, all these dreams can only turn into reality if an individual makes intelligent decisions regarding his/her investments.
How to Invest in Real Estate for Retirement
There’s no doubt that investing in real estate is a smart move, but it is advised to check out all the loopholes before putting money in a piece of property. Buying real estate is more than just living on a piece of land. The practice of property selling and buying has become a popular practice over the last few years, and more and more people are joining this bandwagon. Yes, the real estate market has plenty of lucrative opportunities for investors, but sometimes dealing in real estate can be more complicated than dealing in stocks and bonds. In this piece of information, we understand different and safer ways of investing money for real estate.
Giving on Rent
An vacant, habitable house can rented to a tenant for a considerable period of time. The owner pays for its maintenance, mortgage and various additional taxes. The rent on the property is usually decided on the basis of its location. The land owner earns a fixed income every month which is known as rent. In due course of time many landowners charge more rent in order to gain more profit. However, the best thing to do is to charge rent which would be enough to cover the mortgage payment. Plus the value of the property is likely to have appreciated with time. As soon as the tenant moves out due to various reasons, it is advised to put up the property on the market to earn additional profits.
Real Estate Trading
This is perhaps the fastest form of making money in the market of real estates. In real estate trading, the traders buy properties from owners with the motive of holding them temporarily and selling them for a better profit later. This practice is also called ‘Flipping Properties’ and traders who follow this usually purchase properties which are highly undervalued or are very high-priced. In some cases, when traders purchase a low priced property, they try to increase its value by doing some renovations on the property. This customization can actually result into a huge profit for the trader.
One of the most easiest ways of investing in real estate is putting money in the Real Estate Investment Fund (REIT’s). A RIET is created when a trust or a corporation uses the investor’s money to buy and operate properties. RIET’s function just like stock trade. The trust or corporation has to pay out 90% of all its taxable profits in the form of dividends to its various investors. By paying the dividends, the REIT is exempted from paying corporate income tax. RIET is the perfect choice for people who want to earn regular income.
Most people believe that the money saved through the 401 (k) plan is simply for retirement. However, there are some smart investors who have figured out ways to invest in real estate without disturbing the money saved for retirement. 401 (k) account holders can take out a loan against their account. The money which comes from the loan can be used to buy real estate. However, there are some limitations which come with the loan. First and foremost, there’s a cap on the amount which can be borrowed. Normally the cap is of $50,000 but it can be less depending on the money in the 401 (k) account of an individual. Another thing to remember is that real estate purchased through this method is not eligible for any tax benefits.
Almost everyone in the US knows about the Roth IRA (Individual Retirement Account), it is a great form of investment and is non taxable. People who open an IRA account deposit some money from their salary in the IRA for retirement. In some companies the employer deducts some part of the salary and deposits it in the IRA of the employee. The good news here is people can use the IRA money to invest in real estate. Let’s make it more simple; If you have $50,000 in your IRA account and you want to purchase a property which is priced at $100,000. You can put in $50,000 of your own money and put in more $50,000 from the IRA. This makes your IRA account nil but you can put back that $50,000 once you sell that property at a better rate.
For legal advice regarding these investments, it’s necessary to get in touch with your attorney.
Investing money in real estate for retirement is a good idea if the investor keeps himself/herself updated with the latest regulations and strategies of the market. Real estate is perhaps the best way of earning easy money in retirement but before the game of investment begins it is a good idea to know all the rules.
Many people are afraid to jump in and buy the best investment real estate for a variety of reasons. It can be a complex procedure with lots of legal terms that are difficult to understand. Many people believe the current real estate market is poor and that they will lose money or lose their home. It helps to be armed with information before jumping into the real estate game. Here are a few tips to help a person navigate the complexities.
If a home warranty is available, purchase it to protect yourself against serious problems and builder defects. Make sure you get a warranty from the seller upon purchase. The person who built the home should give you a warranty if he or she is confident in their work. For older homes, you can ask the previous owner to give you a warranty to cover any repairs that may come up.
If you are thinking about moving, you may want to research the neighborhoods of properties you are interested in online. Lots of information about neighborhoods can be found online. Even extremely tiny towns have information available online. Before buying the best investment real estate home, research the unemployment, population and salary margins.
Try to get a checklist from your Realtor. A sound Realtor exactly knows things that will happen for your house purchase and should provide you a checklist for you to know and follow every step to be taken. These checklists can keep the process on track and make sure everything is taken care of.
Think of getting a real estate lawyer when dealing with a foreclosure purchase. Work with a legal professional attorney to protect your own interest throughout the foreclosure process in the event that additional complications or problems appear. Work with a lawyer to protect your interest throughout the foreclosure process in the event that complications and problems appear. It is possible that you are going to avoid a lot of headaches and money down the line.
Find out the overall size and price characteristics of houses in a neighborhood where you are considering buying. Knowing this information is important, since you probably aren’t interested in buying the most expensive and biggest home in your targeted neighborhood. The reason is because you will not get back the money you put into the house when there are houses that are less expensive in the same area.
When shopping for your new home, it is important to consider future needs. You may not have any children right now, but it doesn’t hurt to think about things like school districts if you consider staying in the house long enough to have kids.
If you are trying to purchase the best investment real estate property, be sure you think about your own offer intelligently. The seller can help you settle on an ultimate selling price that you will both be satisfied with.
It is important to know the processes that are involved in buying the best investment real estate. You should know how and where to find resources as well as helpful information on purchasing real estate for investment. Take the tips form above article and put them to use. If you want to be confident and comfortable while buying real estate, you need to understand what you really are attempting to go into.
You might have been hearing about how the current economy is making real estate a buyer’s market, but do you know how to use this to your advantage? This article has advice on how to approach buying real estate in a logical manner that will make sure you get what you want at a price you can afford.
Buying Rental Properties
Find a location of rental properties you want to invest in that are surrounded by local amenities such as parks and malls. In a large city, a property near public transportation is especially profitable. The more things to do that are close to the rental property will draw in more potential tenants and allow you to turn a profit quicker than a rental property that is in the middle of nowhere.
Understand the setup of the utilities in rental properties. If you are considering a multiple unit rental property, it is important to pay attention to the way that the utilities and heating system have been set-up. Take note of the number of gas, water and electric meters either inside or outside of the home to determine how many services are connected to the property. If there is only one connection, be aware that you will most likely need to include utility costs in the rent payments. You might also want to make a call to the local zoning commission, so that you know if there would need to be any major changes to the utility services. There could be significant costs involved in splitting or combining services and you will want to know this in advance.
Learn how to attract good tenants. If you are going to purchase rental properties it is absolutely imperative that you carefully market your units in such a way that attracts the best tenants possible. Marketing is important and you should pay careful attention to how other owners are marketing their properties, particularly those with low vacancy rates.
When purchasing real estate to use for rental properties be sure to do a careful assessment of the neighborhood. Look at the cars parked in the street. Old cars can tell you a lot about the neighborhood in which the property is located. Trash on the sidewalk or worn down houses can tell you that the neighborhood is less than great and at what level you can expect to rent the property.
Look for rental properties in student areas. A college or university neighborhood is a great place to look for a rental property to purchase. In most cases, the vacancy rate will be minimal, and most of the time students pre-pay their rent for the semester or even the entire year. The one drawback is that some students only want 3 month leases; however, if you form a relationship with the school’s housing office, you will most likely have no problem at all finding tenants.
Research potential properties before purchasing them. If you are considering a rental property, evaluate the following features before signing the closing documents.
One of these is sustainability. How is the condition of the property and how much upkeep will it require in the future?
The second thing to consider is the location. Especially with property that you plan to rent, location can make all the difference. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers.
The third thing to consider is the median income of the property’s area. This will not be the same as the physical location. You want to remember that any low rent area will be worse than any high rent area. You should also keep in mind that concerns about location are not as high a priority for high rent areas. Locational issues do become more of a factor in areas with a lower rent.
At theopenhouse, we usually check whether the open house will acquire a potential purchaser. As per theopehouse.com land market review, 44 percent of purchasers used an open house as an asset in their quest for a home and the ordinary open house guest is a rehash purchaser rather than a first-time homebuyer. Most open houses are regularly hung on a weekend day to have the capacity to engage the masses that work Monday through Friday and normally keep going for a normal of 2 hours. The following is a layout of best practices for open houses.
Set the Scene
Start pressing things that you may not require before you move, de-messing and depersonalizing the home. Knickknacks and family photographs can divert to purchasers as you need them concentrating on the home itself and not pictures of your last getaway to the shoreline. Storage rooms ought to be composed and wiped out however much as could reasonably be expected to demonstrate a bigger space. Cleaning your home start to finish will help it indicate much better.
Any home upkeep extends that have been on the nectar do-rundown ought to be tended to. These things incorporate, however, are not restricted to rooftop repairs, plumbing holes, and touch up paint. Sprucing up the check bid of the house is dependably a quick thought as early introductions can be everything. Is the appreciated mat old and grungy? Consider supplanting it. Ensure that the home’s outside shows well. Everything from clearing out drains to cutting the yard. Ensure the arranging and passage to the house is in an ideal shape.
Assess the state of the ground surface. If the floor coverings are grimy, then consider having them cleaned. Should the rugs be past help, then either supplant the rug or potentially consider including a ground surface recompense with the offer of the home so that the purchaser can pick a new deck. Guarantee that all lights are working and no globules are worn out. It won’t just help with showings, additionally in the photographs for showcasing the home.
If you have bigger furniture, you have to mastermind it to make space fill more open; Then again, on the other hand, place it away while your house is listed on theopenhouse.com. Arrange every space so it is welcoming and exhibits a dream that is ideal for diverting. Put fresh towels out in the washroom and guarantee that all can tops are shut. If you have lavatory or territory mats, then you need to evacuate them to make the room feel more extensive and uncover the exposed floors.
Cleanliness and orderliness are critical when you have your home listed on theopenhouse. Kill any odors in the house. No one needs to stroll into space and notice what you had for supper the previous evening or awful pet scents waiting noticeable all around.
Open House Day
The enormous day is here, and the open house is set to start in a couple of hours. Getting your home open-house prepared at last means paying consideration to the points of interest. Begin by going room by space to ensure that beds are made, garments are gotten, blinds are open, and a mess is off of the counters in the bathrooms and kitchen. At last, you need the forthcoming purchaser to imagine their stuff in the space and envision themselves living in the space.
Before you leave to let your broker welcome guests to theopenhouse, you have to put in a couple completing touches. Set the temperature to a happy with setting as you don’t need open house guests to be either excessively hot or too cool. All resources ought to be placed in a sheltered spot and in addition any physician recommended solutions.
Holding the open house is a dynamite approach to get purchasers through the entryway and guarantee that your house is getting a presentation in the commercial center. Be set up as achievement is not a mishap.
Although it can be said that hotels and serviced flats have the same purpose – to provide travelers with accommodation for a certain period, be it a night, a few nights, or even a month – there are some vast differences with the level of comfort, freedom, and services provided by both. Most serviced flats are actually more budget-friendly than hotels, especially if you will be staying in a flat for more than a few days. But what exactly are the differences between the two? Here’s what you should know about serviced flats versus hotel rooms: a detailed comparison.
A different level of comfort
Whilst hotel rooms have the usual amenities you can expect when it comes to comfort, such as a good bed, a well-equipped bathroom, work desks and chairs, and so on, serviced flats offer a different level of comfort altogether. Serviced flats are usually bigger than hotel rooms. With a serviced flat, the space is larger, as it is accompanied by a kitchenette and lounging and dining area. The usual amenities are there, including a comfortable bed and bathroom, but serviced flats often have larger, en suite bathrooms compared to hotel rooms as well.
Independence and comfort combined
If you stay in a serviced flat, you already have a certain level of comfort to expect. But apart from this, serviced flats offer independence as well. With a serviced flat, you don’t have to contend with daily cleaning services, which can be a distraction and a disturbance. Serviced flats are usually cleaned once or twice a week, although you have the option for a daily cleaning service if you so desire. Yet another reason why serviced flats provide you with more independence is the fact that you can make use of a fitted kitchenette where you can prepare your own meals and cook whatever you want. With a hotel, you are resigned to what they are offering in their restaurant or in room service.
Additionally, with a serviced flat, you can conveniently entertain guests without worrying about the typical rules imposed by hotels. Of course, security is still important for a serviced flat, but you have more freedom when it comes to entertainment and can literally feel like you’re in a ‘home away from home.’
As mentioned, by staying in serviced apartments, you can save more money. This is a welcome bonus for the frequent traveler. One reason why a serviced flat is often more affordable than a hotel room is the fact that serviced flats require fewer staff. Cleaning services are not provided every day unless requested, and hotels also have to operate their own restaurants and cafes, which costs more. One other reason you would definitely save more by staying in serviced flat is that you no longer have to eat out – you can prepare your own food, which is a big money-saver as well.
The Asian landscape continues to ignite interest from real estate entrepreneurs as countries such as Cambodia continually embark on projects that upgrade the country’s infrastructure and real estate investment opportunities.
A Surge in Economic Growth
In fact, the country has made great strides over the past several decades. In 1979, when the Khmer Rouge was driven out of the country, the People’s Republic of Kampuchea was established at the time. By 1993, the monarchy had been restored and a parliament was elected, thereby changing the national identity to the Kingdom of Cambodia. Since that time, the country has experienced a surge in recovery and economic growth.
The capital of Cambodia is Phnom Penh, which is a place that is culturally interesting and economically friendly to investors. When you drive through the city, you will note that the hotels and resorts are booming in trade and that the traffic situation ensures an interesting journey, to say the least. Approximately 1.5 million people live in the capital itself and there seems to be that many mopeds on the road as well.
The Cambodian Property Market
All people like their freedom and so do real estate investors, who can choose from a variety of interesting properties. If you are seeking a property for sale in Cambodia, the real estate, like the city’s mopeds, is in good supply. You will see senior citizens on mopeds, families on mopeds, and even individuals taking their naps on mopeds. If you need a default type of transportation, you can always turn to the traditional tuk-tuk. This type of flexibility is also presented by the types of Cambodian real estate that are available online.
In Cambodia, recycling is important. Therefore, street vendors serve fresh cane juice or soft drinks in plastic bags, accompanied by a straw. Also, people’s health, according to statistics, is better than the health of people in the US. For example, cancer rates are half of what they are in the US. Therefore, people in Cambodia, Laos, Myanmar, Malaysia, Vietnam, and Thailand experience a lower rate of cancer-based illnesses.
A Debt-Free Society
In addition, statisticians point out that Cambodians have little in the way of debt. After the ousting of the Khmer Rouge back in 1979, the new government in Cambodia encouraged people to return to their abandoned cities. They provided an added incentive by giving them free housing. Therefore, many people own their home debt-free. Not only that, but locals also operate small businesses out of their homes such as restaurants, moped repair shops, and grocery stores. Local people live simple lives and do not use credit cards, which makes them good at saving.
It is found that the country is relatively safe as well. In addition, healthy food is fairly inexpensive. Much of the produce that is sold on the street is grown and harvested locally and is, therefore, organic by default. The farmers cannot afford to use pesticides. Bananas and a coconut, for instance, cost about $1.50 USD.
You can also find some good buys in properties in the Cambodian real estate market. Not only is the country excelling economically, but it also is a friendly haven for investors to place their money.
Buying a new house is not enough. You also need to buy home insurance to ensure you that your house is totally protected. You won’t be worried if something happens because you know that you have an insurance policy that will make it seem as if you have not lost anything.
Investing in a house requires a substantial amount of money. Add to that the total cost of everything inside it. Imagine what happens to you if you experience fire or flood and you lose everything you have spent your money on. Some people could not even survive this kind of tragedy. The good thing about having insurance is that you know you will be repaid partially or fully. It depends though on the kind of policy that you have bought.
There are two types of insurance policies available. The first one is where the value of the house itself will be repaid if it is burned down. However, it does not cover everything inside it. The other one covers everything.
The best choice
In order to find out which of these insurance policy options to choose, you need to take a look at the reputation of the company. It must have great reviews. This means that people like them since they are honest. They immediately pay their clients in the event of fire, earthquake or flood. They also pay using good and honest evaluation of the house’s worth.
Another reason for partnering with an insurance company is that you can afford the monthly or annual premiums. It is important that it is still within your reach. You may also find one where the monthly payments are automatically deducted from your salary. This gives you the assurance that you won’t be behind in your payments.
Searching for the best choice
There are a lot of options online if you are searching for insurance and protection. You need to first take a look at reviews and testimonials by other people. This will give you an idea of whether or not you are choosing the right firm to partner with. You have to go through the rates and compare them with those of other companies. You can also use comparison websites so that you can check which of them is perfect for you using certain criteria. Once you have narrowed down the options, you can call them. Then, you can confirm if the information presented online is true. After a careful and thorough search, you can determine the best insurance policy for your needs. Read the terms and agreements and seal the deal. You will start to feel assured once you have the policy.
If you have purchased your first, or your hundredth, property for the rental market then the one thing preying on your mind will be to ensure that the propertystarts paying for itself as soon as possible. One of the best ways to do this is to enlist the help of a letting agent who will help secure suitable tenants for you.
Letting agents vary massively in size and scope so it is worth identifying what you need to get from them first before embarking on looking for the right company. For example, if your property portfolio extends across multiple locations across the UK, you may want to hire a letting agent that can provide a comprehensive service for all of your properties. Such a letting agent should be large enough to manage all of your properties whilst also being able to provide specialist local knowledge with branches located throughout the UK.
If your properties are all located within the same city (such as Bristol), then I’d definitely suggest finding a letting agent that specialises in properties within that area. They should be able to clearly demonstrate both their knowledge and understanding of the local property market and help you to identify the right sort of tenants for your property.
You should also consider what type of clients the letting agent normally attracts as many agencies target specific rental markets such as students and business professionals. If your property has been specifically designed with a student market in mind (in both proximity to campuses and set up for multiple-occupancy) then you should look for an agency that can directly tap into the student market.
Once you’ve started to narrow down your choice of letting agent, ask them to provide references from other property owners that they’re working for in the local market. Their current clients will be able to advise you if the service they provide is right for you.
The best letting agencies will ensure that both the property owner and the tenants are treated fairly and will act to respond to any enquiries as quickly as possible. You need to ensure that your chosen letting agent has a good history in providing good quality tenants for their other properties and, aside from talking to other property owners, ask for references from current tenants to ensure the letting agency is treating them fairly as well. A good letting agent will ensure that both the property owner and the tenant are provided with a top class service.
You should also enquire about the specific services they provide within their different cost options. Most letting agents will automatically include the price of advertising and regular house checks within their normal pricing scale. However, they will also be able to provide quotations for additional services to meet your individual letting needs.
Letting agents take the hassle out of finding the right tenants for your property. They also take on the responsibility for ensuring that your property is well maintained and let out for the maximum amount of time possible.
There are many advantages and benefits to be reaped from downsizing into a park home, whatever your age. Here are just 5 of them to challenge the idea misconceptions many have about park home living.
The article, A Home We Can All Afford published by the Daily Mail Newspaper website back in 2009 was quick to extol the difference in price between purchasing a park home for use as a permanent residence vs. a traditional bricks and mortar dwelling – and the massive savings those who do so can stand to make, freeing up their income and savings and so permitting those who take the plunge the opportunity to enjoy a better quality of life.
Whilst prices have of course changed since 2009, having risen, this means that those open to exploring the option of opting to own and live in a park home only stand to save even more on the cost of a property. Consequently and realising this, a growing number of younger people and first time buyers are making the move into park home properties as escalating house prices are freezing more and more people out of the market and otherwise forcing professionals and even married couples to live with parents well into their thirties.
Escape Stamp Duty
Stamp Duty Land Tax, to give it its full name, is a specific kind of tax levied in the UK against certain bricks and mortar dwellings. That is, a traditionally built home within the UK will accrue Stamp Duty provided its value exceeds an amount set by the UK Government.
In contrast, and as explained in far more depth in the article: Do You Have to Pay Stamp Duty When Buying a Park Home? published via the Sell My Park Home website, park home properties are exempt from Stamp Duty. Stamp Duty being a type of land tax and park home residences being bought and sold independent of the land they occupy or reside upon, this means park home owners benefit from saving thousands of pounds they would otherwise be legally required to not only fork out for, but as well the associated costs of hiring a solicitor to help them do so.
Own Your Home Mortgage Free
Mortgages are a kind of loan secured against a property’s listing on the UK Land Registry and not against any property occupying it, allowing people who cannot afford a property outright to still get onto the property ladder. In contrast, park home properties are bought, and sold, as aforementioned, separately to the land upon which they reside. Therefore, park homes are entirely mortgage free and as such stand to save those buying and selling them a sizeable amount of their savings, time and stress.
Then, because park homes are far more financially affordable than bricks and mortar residences, many park home owners consequently purchase their park home outright, often using the money made selling their previous home to afford the cost. Fortunately, and further, those unable to afford a park home outright can still purchase one and those who do so can look forward to paying it of in its entirety years if not decades before those who take out a mortgage. Park home owners do so by financing their park home purchase via companies who specialise in the finance of park homes in order to afford a traditionally built home.
An Alternative to Equity Release
Equity release refers to ways and means by which an individual can continue to live within their home whilst freeing up some of its capital. In essence, those who do this are selling their home from under their feet. In comparison, those who instead sell up their home and use a fraction of what they make to purchase a park home, free up the money otherwise tied up in their property whilst also owning the home into which they move and reside.
Consequently, a large proportion of those within the UK who choose to downsize into park home properties are the retired. In fact, this is such a popular and realistic means of freeing up your money, without ending up owning no home at all or a fraction of one, that the UK charity, Age UK, have taken the time to compile their own guide to doing exactly that, which you can access, download and read for free via the Age UK website.
Buying a Park Home vs. Bricks and Mortar
Most people are well aware of the time, money, effort and stress that go into buying a bricks and mortar property. Then, it is welcome news to most that many of the time consuming, stressful and costly but necessary aspects of buying a traditional home or dwelling do not apply when buying a park home.
In fact, park homes can be bought without even the presence or involvement of a lawyer or solicitor. Whilst this reality highlights the relative ease with which a park home can be purchased, it is of course non-the-less advisable if you have never before purchased a park home to at least consult a solicitor. That said, what you stand to pay them is most often negligible in comparison to the legal costs to be footed for when buying a house.
If you’re a property owner in Bristol, or anywhere else in the country for that matter, there may come the time that you decide to sell on and move to pastures new, or perhaps to simply move to an even bigger property. It doesn’t matter whether you’re a property investor, or simply a homeowner looking for a new home to start making fresh memories in, one thing that is for sure, is the fact that selling a property is certainly not as easy as the TV programmes and adverts would have you believe. Selling a property can be a pretty expensive and pretty stressful affair, although there are things you can do that will make life much easier, and we’ll be taking a look at a few of these things right now, as we look at several ways of how to best sell a property in Bristol.
Have some repairs carried out beforehand – You know the saying that you have to ‘spend money to make money’, well, that’s absolutely right, especially in the property world. Before you put your house on the market, there are a number of repairs/upgrades that you will almost certainly need to have done beforehand, which, although pricey, could dramatically increase the value of your home. For example, if you have a slight leak in the roof, rather than patching things up, it would be best advised to have a new roof fitted. If there are cracks in the wall, they will need patching up. Basically, if there is a problem, it should ideally be fixed before going to market.
Work with an estate agent/letting agent – If you’re looking at selling your property, or renting it out, it is strongly advised that you work with an estate agent/letting agent, as they will be able to provide you with the most help in achieving your goal. These individuals know all of the best locations, they have access to potential buyers and tenants, they have a nationwide reach, and they basically know all of the tricks of the trade. Again, you will need to spend money, but in terms of selling a property, it is certainly money well spent.
Redecorate and go brighter – Before selling, it is also advised that you have the property redecorated, in order for you to increase its overall value. Always go with neutral colours such as white, cream, beige etc, as these are the most desirable when it comes to renting or selling a property, as they look nice, plus they can be treated like a blank canvas by the new homeowners. The lighter the better, so if there is a room that is darker than usual, you may wish to consider having a new window fitted as this will let in more natural light, which will again make the property more desirable. You can also have lamps on in darker corners of the house when showing people around.
From time to time it becomes necessary to acquire home improvement loans to help you “upgrade” your house. Whether you are renting the house out to tenants or you live in the house yourself, home improvements always add value to the property.
There are many home improvement loans you may decide to go after depending on your circumstances such as your credit score and the amount of down payment you may have. You also need to check on other requirements of the type of loan. Here are 7 practical steps you can take to get a home improvement loan approved.
1. Know How Much Money You Need to Get from Lenders.
Determine which areas of the house need improvements. Get contractors to give you an estimate of what needs to be done and how much it will cost to have them done. This will give you a rough idea of how much you need to borrow.
Put all the needed documents that lenders require together. These usually include tax returns, prove of employment, income in the form of bank statements and other data such as your debt-to-income ratio.
3. Know Credit Rating.
You are entitled to a free credit report from the credit reference agencies each year. So request a copy of your report. Go through carefully and if you see any mistakes, file a dispute with the appropriate agency to have the mistake removed. This would improve your credit score.
4. Look for Appropriate Lenders
Look for reputable lenders to borrow from. Know the average interest rates and the rates at which you are being offered the loan. Stay away from lenders whose credibility you cannot establish. If their offer is too good to be true, they probably are. If you make your application online, protect yourself against identity theft.
5. Home equity loan or home equity line of credit?
Each of these are somewhat like a second mortgage. Which one you go for is entirely up to you. A home equity loan is a lump sum of money with a fixed interest rate. It is based on the equity of the home you want to make improvements to. On the other hand, a home equity line of credit has a variable interest rate based on the principal (i.e. loan amount). A home equity line of credit is similar to a credit card, where you pay interest on the amount of money you take from the line of credit, calculated every thirty days. Talk to your banker if you do not understand any of these fully.
6. Understand Everything Before You Sign.
Unfortunately, many people never read the fine print because it is time consuming and boring to read. However, the little time you spend reading the terms of service of the lender is nothing compared to the money you will have to pay if you did not understand something and signed anyway.
7. Create a Budget.
Getting a home improvement loan means you are getting a second mortgage on your house. If you default you stand to lose your home. So create a budget to ensure you make your payments on time without any defaults. It will let you know how much money you can afford to put towards making repayments.
These are some of the best steps you need to consider when you are preparing to get a home loan meant to help yo improve you house.
Little changes in life can mean so many things. The same applies in home remodeling; such little changes can give your home a new and improved look. It can also enhance the living environment inside it. A simple home improvement guide can do great things for better living.
An effective home improvement guide must tackle important issues on building projects that alters and improve existing homes. These projects can be improvements to various areas like lawns, outdoor structures, gardens, kitchens, bathrooms, bedrooms, attics, and so many more. Some examples of home improvement issues are the following:
1. Budget – These days, budgets will always come first, and will heavily influence the planning and other decision-making processes. Most of the time, we all need to come up with an economically sound budget before we can proceed with our home improvement activities. A home improvement guide will tell you to take your time and jot down each and everything that you will need for this undertaking, especially with the materials needed. Once written down, you can shop around and compare prices. Choose those that present you an opportunity to play with your budget.
2. Design and Planning – Now that you already have your budget, you can now start planning how your ideas and designs will be implemented, considering that everything revolves around your set budget. Venturing away from this can cost you more, and this will prove impractical along the way. If you want to get the best of the designs and the planning you pour through it, you can start by reflecting it on your mood. This will give you a sense of direction that will always lead to satisfaction.
3. Comfort – It can never be successful if comfort is not part of the plan. We renovate or remodel our homes simply because we want more comfort in it. Comfort can be defined by so many things; like upgrading the homes’ heating, ventilations, and air-conditioning systems. A modified plumbing and electrical systems is also very important. Such systems are the workhorses inside homes that when functioning well, can do so many things to support other areas. Waterproofing basements can make it a livable extension inside the house.
4. Maintenance and repair – You may have fancy and well-planned home improvement designs, but all these are for nothing if your precious home will be plagued with pesky maintenance problems or unfinished repairs. A real home improvement is one that includes maintenance projects for the complete package. Such projects can include replacement of roof tear-offs, concrete and masonry repairs surrounding the foundations or chimneys.
An effective guide must also encourage creating additional living space inside your home. Marginal areas can be effectively transformed into livable spaces. The basement is a very good example. If you are really serious about home remodeling, you can turn this dusty and unused room into a recreational area for the family, complete with home theaters and other entertainment systems, or as guestrooms. Whatever you reasons for home improvement are, remember that little changes always bring so many good things inside the house.