Purchase Your First Home with ConfidenceWritten by Neda Dabestani-Ryba
Purchase Your First Home with Confidence By Neda Dabestani-Ryba Prudential Carruthers REALTORS
If you are making transition from renter to homeowner, you're not alone. In 2004, 40 percent of homebuyers were purchasing for first time, according to "The 2004 National Association of REALTORS® Profile of Home Buyers and Sellers." With interest rates at all-time lows and a booming real estate market, now's a good time to purchase real estate. However with prospect of making one of largest investments you'll ever make in your life, you can easily become overwhelmed. Some of questions you may be asking are: Will I be able to afford home of my dreams? Do I have enough money for a down payment? Will I make smart home buying decisions? If you go into process prepared, your first purchase can be a good experience. Resources--Before starting out, educate yourself on process. Check your library or local newspaper to find a homebuyer seminar that you can attend. The U.S. Department of Housing and Urban Development has an entire section on its website (www.hud.gov) devoted to homebuyers. It has a list of common questions of first-time homebuyers, information on mortgage and home-buying programs, access to housing counselors, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Other informative sites to check out are www.ginniemae.gov, www.realtor.com and prudential.com. Your real estate professional is also a great resource. Don't hesitate to let him or her know that you are new to process. They will expect you to have questions at each step-from house hunting, to making an offer to closing. The costs involved in purchase of a home can be overwhelming to first-time homebuyers. There are mortgage costs, down payment, and closing costs to think about. Affordability--By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities, and maintenance. And if your down payment is less than 20 percent of cost of home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.
10 Important Tips to Successful Real Estate InvestingWritten by Neda Dabestani-Ryba
10 Important Tips to Successful Real Estate Investing
By Neda Dabestani-Ryba Prudential Carruthers REALTORS
When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know: 1. Compare Property Values and Rents Financial statistics only go so far; best measure of a property's market value is often sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.
2. Be careful - Tax laws may change Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of tax code. The right property with right financing is what you should look for as an investor.
3. Specialize in something you Know Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.
4. Know Costs going in! Know financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does cash flow statement look like? These are key issues that must be addressed before making a solid investment.