Real Estate Quotes
Reverse mortgages don't let you tap the full value of the house. Typically, you can access only 40% of its assessed value, a measure that ensures the lender receives both the value of the house and interest owing even if the property declines in value. [2020] - Douglas Gray
A living trust places your portfolio in the hands of an independent manager, usually a trust company, with family members as co-trustees. The trust receives your investment portfolio and the trustees manage it such that you receive a stable income for life, similar to an annuity. The remaining capital is distributed to family members on your death. The provision of the trust agreement should provide instructions for the financing of your care should you require long-term medical attention. The main requirement for trustees is that they be competent, independent parties who will manage your affairs in your best interest. [2020] - Douglas Gray
The Canadian Estate Planning Institute Inc. (www.estateplanning.ca) offers articles on financial and estate planning. It also provides several checklists and charts that give you a head start on drafting a succession plan for the real estate empire you've built. The National Real Estate Institute Inc. (www.homebuyer.ca) is another excellent source of information. [2020] - Douglas Gray
Real estate investors have three advantages at their disposal: accessible leverage, rental income, and control over the investment. Leverage, when properly applied, allows investors to make larger returns with each dollar invested while having to put fewer total dollars into any one investment. Be careful of the risk here, because negative leverage can hurt your investment if the cost of debt is more expensive than the return on the investment. [2020] - Symon He
Real estate, as an asset, is a natural diversifier. Historically, when stocks, bonds, and other common investments have appreciated or depreciated, real estate hasn't followed suit. The many investment options in the real estate universe are abundant, which makes it possible to pursue diversification within the confines of your real estate portfolio. [2020] - Symon He
As the prices of goods and services go up, the rent you can charge your tenants will also increase. Historically, rents have kept pace with the rate of inflation, if not surpassing it over the long run. In constrained markets like San Francisco, where demand exceeds supply, rent outpaces inflation. [2020] - Symon He
Experienced property managers can be especially useful for screening and selecting good tenants, seeing to the day-to-day business of your rental properties, and removing the risk of excessive vacancies. [2020] - Symon He
A good example of a core investment (lower-risk investments with lower return potential) is buying a brand-new home in an established, mature neighborhood with a thriving rental income. The tenant is already in the home and has a stable income and a good history as a renter. You also have a thorough understanding of the expected appreciation over time in that area. Core investments are suited to investors who want stable rental income while minimizing risk as much as possible. [2020] - Symon He
Familiarity is very important in real estate investing. But the familiarity factor doesn't always play a major role in your final decision. If you're using the services of a property manager, then distance doesn't play that much of a role in your investment. The use of property managers has allowed me to maintain several successful investments in different parts of the country. [2020] - Symon He
Sources for Finding Potential Deals: 1) Multiple Listing Services (MLS); 2) Newspapers; 3) Craigslist; 4) Pocket Listings: The private listings that won't show up on the internet or in newspapers. These occur when the agent agrees to use their own private network (or the network of the seller) to find a suitable buyer. They can also be known as For Sale by Owner deals (FSBOs) when there is no agent to represent the seller. [2020] - Symon He
Buying an investment in a costly neighborhood might be outside your price range, but consider as an alternative the surrounding neighborhoods. Proximity to high-income areas can increase interest in your property. [2020] - Symon He
What I Look for in Tenants: 1) They have a reliable source of income (Ideally, a tenant will have a gross monthly income that is 4 times what you're asking for rent); 2) They have no prior evictions; 3) They pass full background and credit checks; 4) They have positive references from prior landlords. Questions for Previous Landlords: 1) Does the tenant owe any money? 2) Would you rent to this tenant again? 3) Were there any major repairs needed during their tenancy? [2020] - Symon He
Sites like Airbnb claim to offer insurance for the property, but subletting still exposes you to extra liability. In my opinion, it's not a good idea for landlords to allow subletting in their properties. Your explicit stance on subletting needs to be established in your lease agreement, usually using terminology like "subletting in the forms of collecting money or compensation in any form from houseguests for any length of time is strictly forbidden without express prior written consent from the landlord." [2020] - Symon He
In the United States, the data shows that May, June, July, and August typically have the highest volume of home sales. If one wishes to capitalize on this trend, then he'll have to seize that four-month window of opportunity. Better yet, he should drill down his analysis to focus specifically on trends in his target market. [2020] - Symon He
Staging involves setting up a (usually) vacant property in a way that looks professional, clean, and inviting. A staging company will use their own high-quality furnishings to professionally stage the property to look as appealing as possible, either just for a photo shoot or for a period of weeks to account for showings. The only time I would advise against a staged property is during a busy market. If the inventory is low and homes are selling quickly, staging a home is an expense that may not pay off. But if you're in a down season and you really are pressed to sell quickly, that's when a staged property makes a difference in the sales price and expediency. [2020] - Symon He
An often-overlooked drawback to investing in real estate is that you earn no tax benefits while you're accumulating your down payment. Registered retirement plans give you an immediate tax deduction as you contributed money to them. If you haven't exhausted your tax-deductible contributions to these accounts, consider doing so before chasing after investment real estate. [2019] - Eric Tyson
The approximate maximum you can borrow when buying a home: mortgage rate = 3% -> 5 times your annual income; 4% -> 4.6; 5% -> 4.2; 6% -> 3.8; 7% -> 3.5; 8% -> 3.2; 9% -> 2.9; 10% -> 2.7; 11% -> 2.5 [2019] - Eric Tyson
If falling rates are too tough to resist, but you want something less risky than a variable rate, consider a fixed open mortgage. Your rate is guaranteed, but if rates fall to an even more attractive level, you can lock in at that point without any penalty. It's usually not worth paying the premium that lenders charge for open mortgages (usually a percent or so), though, and you have other options. [2019] - Eric Tyson
A convertible mortgage is one of the best-kept secrets in the mortgage game. A convertible loan offers many of the benefits of a variable-rate mortgage, with very little downside. You get a mortgage with a term of six months - or sometimes a year - typically with the same interest rate available for fixed mortgages for the same term. This is generally the best mortgage rate available. At any point during the term of your convertible mortgage, you can "convert" your mortgage to a different term; you can also choose between an open or closed loan. [2019] - Eric Tyson
Avoid loans with prepayment penalties. You pay this charge, usually 2-3 percent of the loan amount, when you pay off your loan before you're supposed to. The only way to know whether a loan has a prepayment penalty is to ask. If the answer is yes, find yourself another mortgage. [2019] - Eric Tyson