Multi Family Property LivingWritten by Cameron Brown
Untitled Document If you've ever been married and going to school at same time, chances are you've had wonderful experience of living in a multi family apartment or house. While most multi family properties are designed to allow peaceful coexistence of many families within their separate units, some apartments and houses give you feeling that you're actually living in one big family. Things like sharing one washer and dryer between five families means you never know whose underwear you'll have to fish out of washer before you start your own laundry. And a shared water heater means that now there's an incentive to early morning classes. Catching 'Cosby Show' every night at seven through your living room wall keeps you conveniently updated on latest goings-on in Huxtable home. While living in multi family housing may not be an ideal situation for many of tenants, it can be a way to wealth for person collecting rent. My own landlord, also currently a college student, manages several properties for his wealthy, out-of-state family, collecting a handsome property manager's fee in process. Sure he had to evict people upstairs, replace roof, renovate unit next door, and perform other sundry tasks, but at end of month, he's got another $2500 in bank. One time while he was fixing a clogged drain at our place I asked him how his family got to be so successful in multi family investment property business. He told me that his family hadn't always been housing barons they are today; after scraping together everything they had, even borrowing from extended family, they still had to take out a substantial loan from a local bank. With this they bought their first multi family property, an old duplex three blocks from university. Although location was great, being as close to campus as it was, purchase had depleted family's financial resources to point were they had to move into property while renting out other half. From this experience, my landlord's family gained some useful insight into multi family apartment financing.
| | Become a Smarter BorrowerWritten by G Marwick
With a nation that has in region of a Trillion pounds of debt one could say we are serial borrowers. Before you consider borrowing money it is wise to consider a few important points. • Shop around for best deal This may sound like a no brainer but many people still use their high street bank to borrow money. These are usually most expensive and with Internet you can spend 30 minutes in your home finding best deal. • Make sure you understand APR Although lender will outline APR charges this may not be actual amount you will be paying. Make sure you get true cost of your loan. • Keep repayment period as short as possible The longer you take to pay off your loan more expensive it gets. Try and limit repayment period to less than 5 years. For example, a £5,000 loan borrowed over five years at an interest rate of 9% will cost you £103 each month, this may sound affordable. But overall, it will cost you £6,176 - £1,176 in interest. If you borrowed it over three years, your monthly payments would be £158 an increase of 53% in payments however you would only be paying back £5,694, which is substantially less. • Make sure you read fine print Lenders make a fortune in charging their customers payment protection. There are usually several conditions attached to this kind of protection so make ensure that you get protection you want should you not be able to keep up payments. There are usually redemption penalties if you pay your loan off early so make sure you are aware of these charges before hand.
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