How To Estimate The Market Value Of A Property Home Inspections Getting Your Home Ready For The Inspection Garage Construction Plan Ideas Why Own A Home Instead Of Rent
Often people fail to make a profit from property investment when they do not understand the true market value of their chosen property, both in terms of resale and rental income.
Investors hoping to purchase a run-down home or off-plan development and sell it on at profit when the work is complete; a practice known as flipping, are often caught out by over-inflated prices or under-estimated renovation costs.
On the other hand, buy-to-let investors can be seduced by suggestions of high rental values and then disappointed when these do not materialise.
Whether you’re planning to flip a property or buying-to-let, it is important to ensure that you do not pay over the odds, as money saved on the purchase price will lower your mortgage costs and increase your profit margin.
Understanding the local market
One of the best ways to estimate the potential value of a property is to understand the local market. Fortunately there are a number of tools to help you do this:
Use the internet – The Land Registry (landregisteronline.gov.uk) now provide information on all properties sold in England and Wales since 2000. Through this you can access information on the property’s value when the registration took place. Remember this information will not be up-to-date, but it may give you a broad idea of what the current owner paid.
Browse estate agent listings – Using the internet and local papers, you can soon get an idea of the market value for different types of property in the area. It is also worth arranging a couple of viewings, allowing you to make suitable comparisons when you have decided on a place to purchase.
If you are planning to buy-to-let, it is also worthwhile speaking to a few letting agents to try and gauge the general rental prices that could be expected. Again rental listings on the internet and in local papers will help to verify the amounts tenants will be prepared to pay.
Seek professional advice
Once you have decided on a property and feel confident that it reflects the true market value, it is advisable to carry out a full survey.
Although it is a requirement for mortgage lenders to inspect the property, the surveyor will not look at inaccessible parts (such as the roof, floors and drains), unless there is reason to believe that there may be a serious defect, in which case it is likely that a recommendation for a more in-depth survey will be made.
The risk of relying on this basic inspection is that the surveyor could miss an important defect which will be expensive to repair. By having a more in-depth survey, the surveyor will be able to identify such defaults and advise on the potential cost of repair, allowing you to negotiate a discount on the purchase price to cover this.
Take your time
Unfortunately there is no silver bullet approach to accurately valuing property and one of the secrets to running a profitable property business is investing time and money to ensure your buy your property at the right price.
Many times I go to do a home to complete an inspection for a potential buyer, only to find the home not ready for an inspection. The home not being prepared then makes the buyer suspicious that there are areas that the inspector could not access causing them to back out of the deal. Completing a few routine maintenance items and having the home prepared for the inspection will avoid those long lists of misc. defects on a home inspection report that can scare a potential buyer.
Here are some tips to get your home ready for a home inspection.
1. Make sure the electric is on in the home and to all circuits. A home inspector will not flip breakers “on” or “off” during an inspection.
2. Make sure the gas or fuel is on to all the appliances and that all pilot lights are lit. Inspectors will not light pilot lights or turn on valves.
3. Make sure water is on and functional to all fixtures. Inspectors will not turn any valves to get water to any fixture.
4. If there are any light bulbs burned out, replace them.
5. Clear out stored items under the sinks.
6. If the attic access is located in a closet or other area where your personal effects are in the way, remove all of your personal items from under the access hole and remove any shelving that may be in the way of getting a ladder to the attic. Inspectors will not move any personal items or shelving to access an attic.
7. Grab a screwdriver and check all doors and windows for loose hardware, and make sure they all open/close properly.
8. Clean off the roof and/or gutters from debris, etc.
9. Check for any minor leaks under sinks or drains under the floor in the basement, etc., and have them repaired prior to the inspection.
10. Have your heating and A/C equipment serviced and have record of the last servicing available for proof.
Taking care of these items will not only reduce the laundry list of defects found on a home inspection report, but it will also help secure the deal to sell your home.
Here are a few sources to locate a home inspector in your area.
https://www.coolwebtips.com construction has taken off over the past few years. Many people that have homes have decided that they want to build onto it in one way, shape, or form. And a lot of these people have determined that a new garage would give them what they are looking for.
When you are looking to take on a garage construction project, you will first need to start out with a plan of the new structure. You can find a garage construction plan in a number of different places.
Deciding whether or not you are going to take on the garage construction project yourself is an important step as far as coming up with a plan is concerned. If you are going to build your own garage, you are going to have to draw up your own plans. But on the opposite end of things, if you are going to hire a contractor to take on your garage construction project, they will be able to supply you with a number of different plans.
But regardless of who is going to be doing the actual building, make sure that you have a detailed plan so that your project follows along as it is supposed to. Never make the mistake of thinking that you will simply build as the project goes along. Even though this may work out in the end, more times than not you will end up missing out on something that you need.
Finding a garage construction plan that suits your needs should be easy. The first thing that you will need to do is determine how much space you have, as well as how big you want your new garage to be. The good thing is that your options are endless. You could opt for a single car garage that offers nothing more than basic shelter, or you could decide to build a multi car unit with a storage space on top. This decision will be based on size as well as necessity.
Also, price is always a determining factor in any garage construction project. Obviously, the smaller the garage the less you will have to pay. And remember, by doing the job yourself you can save a lot of money on labor.
A garage construction project may be all you need to take the look and functionality of your home to the next level.
There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.
About 10 year ago a had a retired aunt and uncle who rented a condo in Las Vegas. Uncle Jim (not his real name, but that’s what I’ll call him) was a retired minister. Throughout his career he and his wife lived in parsonages, which are homes furnished by the congregation while they ministered there.
He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Jim and his wife were using a huge portion of their limited retirment money to make expensive condo rent payments. They strongly cautioned me not to make the same mistake they had.
Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen-age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.
More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation, when renters lose money and owners make money.
Homeonwers can be eligible for signifigant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments is made up mostly of interest and taxes.
If you need to refinance to consolidate other debts (an opportunity you don’t have if you are renting) the interest on this is also tax deductable.
Instead of payments disapearing into someone elses pocket, home owners are building equity in their own home. This is often one of a person’s biggest investment assests. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a schelduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advanatge of that, not the landlord. You can then use this equity to plan for future goals like your child’s education or your retirement.
It is Yours!
When you own a home you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.
Even young people, like college students out on their own, can often benefit from home ownership. It puts them ahead of other young people their age financially by helping with their credit and giving them what is often an excellent investment. Often a college student buying a home will rent the rooms out, and his or her roommates end up making the payments for the house. When the student is ready to move on, her or she can sell the home (hopefully making a profit) or keep it as an investment and continue to rent it.
Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. Home ownership also comes with some increased responsibilities, and isn’t for everyone. There are some disadvantages to homeownership that you should take into account.
Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same, home owners still have to pay property taxes, all the utilities, and all the maintenance and upkeep costs for the home. Often you need to supply appliances that were furnished with a rental.
Decreased Freedom of Mobility
Homeowners can’t move as easily as a renter who just has to give notice to the landlord. Selling a house can be a complex and time consuming process.
Risk of Depreciation
In some areas with overinflated prices, there may be a risk that the house will depreciate instead of increase in value, if the prices go down. If you then sell the house, you may not get enough money from the home to pay back your mortgage, and you will still owe the mortgage company money.
Possibility of Foreclosure
If for some reason you are unable to make your payments, you risk having the lender forclose on your propety. This can result in the loss of your home, any equity you have earned, and the loss of your good credit rating.
When considering home ownership, you need to weight the advantages and disadvantages for yourself. If you are like most people, you will find that homeownership is worth the risks and disadvantages..
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