Showing posts with label Real-Estate. Show all posts
Showing posts with label Real-Estate. Show all posts

1/14/2017

Learning A Bit More About Debt Domino Effect on Home Loans

1/14/2017
At present, due to the ever growing rise of homes, buying a place is equivalent to taking loads of debt on your shoulder. Still, some consumers are quite ready to add that burden to their recent options and even add more debt with their already other credit card debts and more. Such type of situation has been given a name; debt domino effect. Those people, who are willing to refinance or sold their old house and buy another, are likely to increase their current credit card related pending and even on car purchases. Such services are mostly termed to be interrelated.
Debt Domino Effect on Home Loans
Debt Domino Effect on Home Loans

More about this effect

Rather than reeling in their current spending while approaching the biggest financial commitments, consumers are currently charging more on the said credit cards in months, which can lead up to a grave move. Whether you are planning to purchase any kind of furnishing item or going for any renovation, most of the consumers are trying to increase the card spending in the current months, before even trying to move into new residence. These are some of the reasons, behind the hike in interest level of home loan and finally giving rise to debt, and bankruptcy for most of them.

For the new mortgage

Those consumers, who are currently applying for new mortgages are likely to be 2 to 3% more on opening up a new credit card account or auto loan over the time span of next year. This might take place mostly within first month. This study also found out that the new credit card originators were 54% higher for those, who are willing to move into new places, in the month just after procuring a new mortgage. Furthermore, the auto originators are termed to be 84% higher within that same time frame. So, keeping a close call is what you need to keep everything within your set budget plan.

Refinancing is another key

The people, who are currently refinancing the loans, are trying to lower their monthly payment. They are even trying to give themselves a raise, and trying to spend that. They are now working on additional cash flow, as they don’t have any other option left. Meanwhile, some of the near record auto sales have also pushed the current money to nearly $1 trillion, on a national level, for the first time. This news for lenders means there will be vast new borrowers, who are looking for higher demand for some credit cards and even for auto loans, when they are trying to move or refinance.

Now for the home buyers

But when it comes to home buyers accumulating large debt amount over short time can create some devastating consequences to the current credit score. Applying for more amount of loans on heels of mortgage application, can easily create 700+ credit scores, which can drop to more than 100 points. And that’s not good for your credit history. Credit approvals can even come to an end quickly, when the creditors realize that consumer is overextended. For more details, click here for some news.

1/09/2017

Hiring the Right Property Management Company for You

1/09/2017
When you decide to rent out a unit or even a multi-tenant unit, you are making a business decision. Property rentals require upkeep, compliance with a variety of laws, and ultimately provide a return on a real estate investment. Accordingly, you should focus on your rental business. You should concentrate on the financial aspects of your rental and the acquisition or retention of a rental. The right property management company can help with the rest. When you choose a property management company as a partner, you can focus on the business of your rental, while they focus on the maintenance and upkeep of your rental unit, or units. Before choosing someone to partner with you, make certain that you get acquainted with the know-how needed to pick a good company versus a sub-par company.
Property Management Company
Property Management

References

It’s always safe to get a business reference from other business people. Typically, individuals who earn a living or have a side business that involves property rentals count on positive reputations. If another business person refers a particular property management company to you, it’s likely that company has performed satisfactorily for the property owner. However, if you don’t learn about a property management company from a contemporary, then you should seek client references from any property management company that you consider engaging in business as a property partner.

Fee-structure

You are in the rental business to earn money, not lose it, and so while a good property management company will certainly help you in that regard, you should carefully question a prospective company concerning their fee structure. You want the property management company that you hire to have a vested interest in making sure that your property is always rented out. So, you should choose a company that only takes a commission from actual rent earned, and not a fee on properties that sit vacant without tenants. The percentage that a company will make per unit varies by region, but typically the cost falls in the range of five to ten percent of the actual collected rent.

Who handles repairs?

An important question and one that a lot of property owners forget to ask is about who handles needed repairs. Some property management companies handle everything from snow removal to cutting grass, to fixing anything that needs to get corrected. Other property management companies bring in experts, and they check with you before doing any major work. Your preference will dictate the type of company you want to hire, but it’s good to know up front how repairs will get handled. Many quality property management companies know that they can’t do it all, and usually have working relationships with qualified experts.
Repiars
Repiars

Tenants

Finally, before you partner with a property management company, you should know how they screen potential tenants. A quality property management company is familiar with the local landlord tenant laws. Additionally, most good property management companies check for felonies in a tenant’s background, as well as their credit score. One way to make sure that you earn money on your rental property is to ensure that you lease to responsible tenants.

The right company for you

A property management company can help to maximize your occupancy and minimize your risk. Be thorough and  make sure that you pick the right company to partner with you.

Bio -

This guest post contribution is courtesy of Rooftop Real Estate Management, a property management company Boise, ID property owners have come to trust for quality service.

7/14/2016

Pre-investment Queries for Residential Properties

7/14/2016
How often do you buy a residential property?

Surely not often enough to get accustomed to the trends and process which changes in every cycle, right!

We must understand that the ever increasing demand in real estate sector makes this industry extremely dynamic and it is very difficult to keep yourself updated with everything around it. However, at the same time if we are about to buy a property it becomes important to do a thorough research at our end make sure we don’t make mistakes.
Residential Properties
Residential Properties 
Bangalore being a major IT hub of India is one of the most appealing investments for HNIs, NRIs and other investors and hence has observed real estate grow by huge leaps and bounds in a short span. There are a lot of good projects in Whitefield and other posh localities which have recently developed and are offering homes in all budget brackets. With so many options it becomes easy to get carried away and not take the right decision. Hence, a step by step approach is a better one. Following are some tips for that same:

# What is your budget?

Determining budget is the first and the foremost aspect of buying a property. Until you know how much you can spend, you cannot make a purchase as humungous as buying a house. To answer this you need to check your financial standing and consult your bank passbooks and a CA to understand you disposable income for this project.
Home Budget
Home Budget

# How much loan can you get?

Firstly the amount of loan that a bank or a financial institute can sanction to you depends on your credit history or the equity if you have a previous home loan too. If you have defaulted in paying off your debts, it will show in your financial history which the bank can fetch from their system and this will pose as an obstruction to loan approval. Secondly, if you have a higher income or if you are jointly owning and registering a property with spouse or anyone else, you can get a bigger amount of loan.
Home Loan
Home Loan

# Is the property Compliant?

The developers must have certain certificates to prove that the residential project he is offering complies with all the government set rules and regulations like Conversion order, title deed, building plan and floor plan certified, No objection certificate, occupancy certificate, completion certificate etc. Hire a lawyer to assist you while checking this if you are not proficient enough. For example, if it’s a flats in Whitefield Bangalore from a trusted developer, you can easily verify previous details and reputation of the developer and decide to trust or not.

# Which banks are financing the project?

Check if some reputed banks are approving the loan for this project or not. This should include big names like HDFC, ICICI, SBI, etc. rather than only small financial institutes. This is because if the banks are convinced that the project is compliant then only they give the loan and so if the township you are considering does not have any good bank associated to it means there is some verification and reliability issue.

# What is the total cost of the house?

Even if you have hire a financial consultant, go to the website of a good bank like and use the home loan calculator to check if you can afford a certain amount of loan and determine your budget on your own as well.

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