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Millennials are shaping the new housing market – A look into the details

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As millennials are gradually getting older and grabbing jobs, they are beginning to book their new homes. Though entering the housing market seems to be delayed for few of them, yet as per reports from Zillow, the millennials are currently the leading generation of homebuyers. There are many who hold a false opinion about the millennials. If you take them collectively, they are considered as later bloomers as compared to their previous generations. People perceive that this generation is not much interested in settling down on their own and owning things. The millennials are purchasing homes and the millennial homebuyers are helping to power the present real estate market throughout the nation.

Millennials are the biggest group of home buyers

As per a recent study that was published by NAR and the Home Buyer and Seller Generational Trends of 2017 show that millennials are currently the biggest group of buyers who are booking their new homes and they constitute almost 35% of the entire market. Baby boomers represent 28% and hence millennials have surpassed the baby boomers as well. You’ll be surprised to know that this is the 4th consecutive year where millennials are being counted as the generation of most active buyers. The trend will continue soaring when this generation keeps growing, settling down and buying new homes .

The chief economist of NAR or National Association of Realtors reported that the millennials have been extremely slow in entering the market but off late, there is an uptick in the number of buyers who belong to the millennial generation. This is indeed a positive sign for the economy as with the rise in home values, there should be a larger number of people who should take part in the housing recovery process. Polls by NAH or National Association of Home-builders reveal that 90% of the millennials wish to buy a home some say.

What are driving the numbers?

It’s clear that this generation is taking quick action as they are the ones who see the values of homes rising and the interest rates getting lowered down. They are reaping the benefits of the opportunity to purchase their first-ever home with a mortgage loan which they can afford. One more natural thing is that the other end of the millennial generation is reaching that stage where it is natural to buy real estate. People are in their early 30s and late 20s and they’re settling down with their careers in starting off with their families.

One of the biggest concerns for the first-time home buyers is the burden of monthly payments. They might not afford to pay enough money down and for them the VA and FHA loans could help with better and reasonable rates.
It is great to see people buying their first homes and it is pretty good to know that millennials are acting faster. This is not only helping the country to continue with the recovery of the housing market, it will also power the real estate market.


To Buy or to Rent? That’s The Question

As we embark on our careers and start a family, many young adults choose to invest their hard-earned money by buying their very first home. It’s an exciting period with a lot of learning involved; from finding the right place to buy, to getting the right kind of insurance, and selling it again a few years later.


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In the meantime, however, you’ll see the same generation choosing to rent instead of buying – and they claim to have made the right decision.

While we can’t make a choice for you, we can show you the pros and cons of both options, so that you can find the one that works best for your lifestyle and finances.

Buy to build equity over time

Die-hard tenants can talk about the benefits of renting all they like, but they still won’t be able to build the kind of equity over time that homeowners can. You can always find another way to invest the money you would have spent on a home, though, and those who choose to buy are not joining some sort of exclusive investment club.

By renting, you’ll be paying down on someone else’s mortgage which is exactly why many people choose to buy instead.

Keep in mind that equity does not equal automatic profit, and the area you’ve chosen to invest in may very well take a dip in value over time. Renting your home may not build equity, but there’s also no risk involved as you can pack up and move when the street turns student-friendly.

Relocation is easier for tenants

Those who love the freedom of simply giving a few weeks notice before packing up their stuff and head to Thailand to work for a year or so, would never consider buying a place. Sure, you can become a landlord and find tenants – but it’s tricky to maintain a place when you’d like to trot the globe instead.

Not only can you stay flexible and volatile when it’s time to head abroad, but you can easily upgrade to one of those fancy city apartments without having to go through the hassle of selling first.

Responsibility for maintenance

While owning your own home gives a lot of creative freedom as you may decorate and spruce it up as you please, you’ll also be the one in charge of taking care of whatever repairs and maintenance your home needs.

This can be quite expensive; it’s estimated that you’ll spend about 1 % of its total value each year on repairs.

The furniture in your home may also be yours to keep, but you can include the cost of keeping this up to date as well. Most rentals come furnished and, while you have to take reasonably good care of it, the wear and tear of living there won’t come off your paycheck.

Small families and those who plan on staying put for the next couple of years can really benefit from buying instead of renting. You’ll be involved in the community and feel that sense of belonging that is so important for small families; until then, don’t worry.


Which Qualities Most Affect The Value Of Your Property?

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If you are investing in real estate, it goes without saying that you want to earn as much as you can from it. This, in essence, is the primary goal, and it can be surprisingly challenging making it happen as well as you would like. However, the more you understand about the whole process, the better, and that is where this comes in. One of the main things you need to comprehend well is what it is exactly that increases or decreases a property’s value. This will help you to understand better when to buy, sell and when to just sit still. Let’s have a look at a few of the most important qualities in this regard.

Location

This first one is often referred to as one of the basic tenets of real estate. If you are happy with the location of the property, you can be fairly confident that it will have a good value. But knowing what constitutes a popular location is another matter altogether, and is generally the kind of thing that you come to appreciate through trial and error and a little bit of patience. But something that hardly ever changes is that an exotic location can really help boost the value. You are more likely to be able to charge more for a waterfront property than a suburban one, for example, so it is worth bearing those kinds of considerations in mind as well as possible.

Fixtures

The quality of your fixtures and fittings, as well as what kind of ones your property has, will make a huge difference to the value – much more even than the building material of the property itself. You should endeavor to keep your fixtures and fittings in the best possible state for as long as possible, as that is the number one way to ensure that your property retains its value as much as it can. Of course, a certain degree of wear and tear is expected, but you should still try to minimize this as much as you can if you care about retaining some of the property’s inherent value. Fortunately, this is the kind of thing that can be easily fixed, should it come to that.

Crime

If you were wondering whether the neighbourhood affects the value, the answer is yes. But there is one factor in particular which has an enormous influence, and it is the crime level in the local area. If you find that local crime increases, this will absolutely have an impact on the value of your home. Of course, this is the kind of thing that you cannot control, so it is merely something to consider as you are purchasing a property. But the more you know about how your property’s value is affected, the better equipped you are to try and make the most of what you have got.

The more factors you are aware of, the easier you will find it to make the most of your properties, so keep an eye on as much as you can and you should find that beneficial in the long run.

 


4 Ways Smart Lights Benefit Your Home

Forgetting to turn off the lights is a bad habit that can be hard to break. It wastes precious energy resources and bumps up your electric bills. However, technology has done well to minimize or eliminate the impact of bad habits, making it possible for people to live a more convenient and worry-free life. With the new smart lighting technology, you no longer have to remember to switch off the lights or go on a guilt-trip for not doing so. On top of that, you can save money and enjoy a host of other benefits.

Save Energy

Smart lights are equipped with motion sensors, which allow them to switch on only when someone is in a room and switch off automatically when nobody is around. This means that they will not waste energy when they are not in use. These lights can also adjust their brightness according to the amount of natural light available in a room. With this daylight harvesting ability, they can significantly reduce energy use. Additionally, smart lights use LEDs, which are at least 75 percent more energy-efficient than incandescent light bulbs, according to Energy.gov.

Save Money

The U.S. Energy Information Administration reported that lighting made up about 10 percent of the electricity consumption in the residential sector in 2016. It is the second-biggest utility expense in most American homes after heating, ventilation, and air-conditioning (HVAC). By reducing energy consuming substantially, smart lighting can help you save money on your electric bills. Moreover, its use of LEDs enables it to last much longer than incandescent and fluorescent lighting. Smart lights may be more expensive, but they offer better value for money in the long run.

Customize Lighting

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Besides using lighting with smart technology for saving money, you can also use it to create lighting schedules and settings to suit your lifestyle and preferences. Smart lighting allows you to schedule lights to turn on just before members of your household come home and plan different levels of lighting for different rooms and purposes. You can also switch on the lights in certain rooms when you are away, so that passersby or potential intruders will think that someone is home. Some smart lights come with built-in ambient lighting for creating different moods.

Make Life More Convenient

Another benefit of using smart lights is that you can control them remotely. With just a few taps on your mobile device, you can change what’s off and what’s on in your home no matter where you are. Since they are connected to the Internet, smart lights can be configured to interface with other smart systems in your home, such as HVAC, music, and alarm systems. If all your smart systems are properly programmed to work well together, you will have a home that is able to respond dynamically to your behavior and make your life a lot more convenient.

Smart lighting can make a big difference in your life. Although it is significantly costlier than ordinary lighting, its cost-saving potential and other benefits far outweigh the extra investment.

 


Leave Heavy Costs Behind When You Move

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You might think that the biggest cost when moving home is buying the new property and this is technically true. However, you shouldn’t underestimate how fast the other costs can build up and become unmanageable.

For instance, you will always need to hire a solicitor when you buy a new home. They will ensure that your rights are protected when you purchase the property and that the transaction is completed without issues. The best solicitors can charge at least a few thousand for transactions like this, adding a fairly large bill onto the initial purchase of the property. This is certainly not the only cost that you will need to contend with either. You’ll need to think about estate agent fees as well.

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You could be selling your old house, and if that’s the case, you’ll need to pay an estate agent to market it for you. You might think that you can cut costs by hiring an estate agent that exclusively markets your property online. However, you may discover that using a full service is actually more beneficial and better value for money. This will certainly be the case if your home is part of a niche market due to the build or location. This is one example where the cheapest option isn’t always the most valuable. Here are a few other price considerations you’ll need to make when buying a new home.

Travel and Transport

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Depending on how far you’re moving the travel costs can be crazy. However, there are a few ways to cut them right down. First, try to move in a season such as winter where there isn’t much demand for moving. At times like this, movers have no choice but to cut their costs down to size and services are often cheaper.

You should also think about using a specialist company for moving certain items such as your vehicle. If you use a service such as Shiply car transportation, you can get your vehicle transported to the new home, even if it’s in another country. This is often a lot easier and cheaper than arranging to move it yourself.

Careful Of Surveys

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Surveys can be incredibly expensive because usually, you’ll need to complete more than one. If you like the house and you’re interested in buying it, you’ll complete a survey. If that survey brings to light serious issues, you might decide not to buy it. At that point, you’ll have to look for another house and complete another survey.

The best way to avoid this issue is to make sure you can recognize serious issues without a survey. For instance, structural issues will be apparent due to doors that stick and buckled floors. Any issue like this and you can guarantee some costly repairs will be needed if you buy the property.

You also need to watch out for gazumping. Sometimes, you might have completed a survey, it comes back clear, but another buyer has put an offer on the house. At that point, you might have to arrange your original offer to secure the sale. It’s a nasty business and one that can make buying a new home a lot more expensive than it should be.

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Targeting Your Property Sales to the Right Audience

In business, you create products and target them to specific audiences. For instance, if you’re developing software that helps you manage your finances, you have to either target that towards business owners and give them the tools to run their business, or you target it towards regular folks by helping them manage a budget and keep them out of debt. The way you market these services also makes a difference. For instance, if you advertise your software as “suitable for business”, then you probably won’t get many users buying your software if they don’t own a business.

The same applies to the real estate market. You can’t really advertise a studio apartment to a couple and you can’t advertise luxury housing in an area that has low income. These are very extreme cases, but you probably understand the point; if you want to sell a home, you need to market it towards the right people.

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Picking the right location

When you first get started in the real estate market, you want to pick a location and focus on just that. For instance, if you have a real estate business in the middle of the city, then focusing on cheap and affordable housing is a good option if you want to target the masses. Housing isn’t cheap, especially in a city, so in order to get the most attention for your properties, you have to know what the majority of people want. In the case of a city, they want cheap and affordable properties near amenities such as restaurants, public transportation and supermarkets. If you’re able to target the right audience with not only your properties but your entire estate agent business, then you’ll get a lot of customers coming to you for their specialised needs.

Similarly, if you want to target the rich and wealthy, then you need to move away from budget properties and instead, focus on luxury apartments in prime locations. The properties themselves need to ooze with style, they have to be ultra-modern and they need to be surrounded by other rich and famous people. Of course, it takes a lot of money to start investing in luxury properties, but it’s worth the cost because these properties can sell for ridiculous amounts of money, and at that high-end range people are buying for exclusivity and not function.

Marketing it correctly

To be a successful realtor, you need to understand what it means to market your properties. For instance, if you’re going the luxury route and selling expensive properties, then you need to advertise your properties on the correct channels.

Similarly, if you’re aiming at a budget conscious market, you could contact various housing agencies that help low-income families find new properties, or you could advertise locally with traditional marketing methods instead of using the internet. Wide reach might not be the best idea if you are selling budget value properties, and if you’re aiming at providing housing for your local community, it makes sense to use traditional promotions. On the contrary, if you’re in the luxury home market, then it’s mandatory to use the internet because if someone has the money, they would probably be willing to buy a luxury property no matter where in the world it is.


Neighborhood Watch. What To Do Before Moving Away

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Do you dream of moving away to a nicer climate? Are you thinking of selling your home at all? Or do you just want to make a fresh start? These are all questions we ask ourselves almost on a daily basis if we are unhappy with our surroundings. We all have a reason to make a change, and it is something that can be feasible if you put the right amount of planning and preparation in place. When you are deciding to up stakes and go for a  new life, there are some things to think about before you put up a “for sale” sign on your front lawn.

Your finances are the most important thing to start off with. Can you afford a place that is within your means? And it’s not just taking into account the costs of the house, what about groceries, taxes, gasoline, your utilities? If you research into the area you are interested in, how does it weigh up in comparison to your current outgoings? If you are looking to move to a completely different part of the country, then you need to examine the expenses. If your income stays the same and the living costs are low, then you are making a great profit!

The job market is a big concern for many people, and if they are the sole breadwinner, the pressure to earn is a big priority, and problems can be thrown up based on the type of work you are involved with. Banking or business will be more concentrated in the city areas, and farming and factories tend to be located in rural areas. As well as the types of work, the salary can vary based on the location.

The quality of the neighborhood will impact on your choices. Looking on a site like http://www.skyfiveproperties.com/homes/Miami-Beach/Venetian-Islands you can see that the Venetian islands will be much quieter when compared to a hustling Miami city center, and your own personal needs will dictate the type of area you want to move to. But if you have a family of varying ages, then you will need to consider things like schools and amenities that are good for the children to ensure they are happy in this new environment. The culture is another thing that we don’t consider a lot of the time. Which is why you should check out a place properly before you decide to move there.

Commuting options are another feature of the modern world that can be a determining factor on where you live. The costs of homes out in rural or suburban areas will cost less, but without access to main roads or rail links, it can make traveling to work every day a stressful experience. Commuting can also have a detrimental effect on your home life and family relationships. So before choosing an area that appears to have the full package, you may want to spend a few days there to get a feel for the place and see how it affects you on a personal level.


Potential Problems With Modern Property Searches & How To Fix Them

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Investing in property is always a good idea. Real estate isn’t hard to understand, and the return on investment is usually very high, so it’s a no-brainer. The hard work is finding the perfect property. Houses or office space won’t come to you – you have to come to it, and that poses problems. Most of the problems that arise when you search for a house are cosmetic and easy to fix. However, there is one or two which are potentially damaging and much harder to solve. Here are the issues you will need to look out for and how to mend them.

Not Considering The Options

Lots of investors think they have the right property and make a bid as soon as possible. Even if it turns out to be the right decision, it is very much the wrong move because it is irresponsible. As a potential investor, it’s essential to look at as many properties for sale as possible to get all of the information. A sound investment is one that you base on facts and analysis, and you can’t do that without all the data. To make sure you avoid this mistake, keep on looking even if you think you have hit gold. No one knows when a better opportunity will turn up – how can you if you don’t have your eyes open?

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Under Budgeting

Most properties aren’t cheap. In fact, they are some of the biggest expenses on the planet as one house can cost hundreds of thousands. With that in mind, it’s imperative that you have a detailed plan for the total cost. The last thing you want to do is find out you don’t have the money to continue the investment after you have signed for the mortgage. A realisation like this is enough to bankrupt anyone and turn your dreams into a nightmare. So, think of every possible cost and write it down before you make a bid. Then, add the costs up and weigh them against your budget. If the expenses are more than the budget, then it isn’t a substantial investment. A sound investment is one that makes you money and doesn’t potentially harm your future.

Overestimating Your Worth

No one wants to pay for a plethora of professionals to take care of every odd job around the house. Sure, some jobs will need an expert and an expert only, but there are some you can do, right? It is true that a handy person can take care of a handful of jobs as long as they have the knowledge. What they can’t do, though, is complete every single task alone. A qualified joiner wouldn’t be able to renovate a property alone, and they are professionals. There is too much to do and too little time, which is why people like estate agents, builders and architects are all essential. Yes, they do add to the cost, but they also prevent the house from crumbling and ruining your investment. In most people’s book, that is worth the money.

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Lack Of Trust

As you know, it is essential to outsource during the search. The problem with outsourcing is that it requires trust, and some people aren’t trustworthy. It isn’t like they are trying to swindle you out of a fortune, more like they value their interests over your interests. But surely it’s human nature to be selfish? Well, when it comes to a realtor, you need them to be selfless. As a novice, you don’t have the skill set to spot a good investment. Frankly, you’re relying on them to help you choose the right investment, and they might not be so helpful. Estate agents can manipulate people into buying the wrong house, for example, because they will get more commission. Even though they know it’s wrong, they see the money signs and can’t help themselves. Clearly, you need someone you can trust, so you need to look beyond their resume. How do they come across as a person? Are they yes men looking for a deal? Do you get the impression they don’t care about you or your investment? These are all important considerations before you hire a realtor to help you find a property.

A property search is one of the hardest parts of making an investment in real estate. Get the search wrong, and you could literally pay for it for the rest of your life. The good news is you won’t have to thanks to these tips.

 


How to Ensure Your Home Sale Doesn’t Fall Through

There are plenty of guides out there about maximising your house price before you put it on the market, but achieving a higher sale price only makes it that much more frustrating when the sale falls through.

Three in ten property purchases end up collapsing after an offer has been agreed. Not only is this extremely disappointing, it can be financially damaging too, as fees relating to valuations, surveying and other administrative duties cannot be recovered. If you don’t want to go through the hassle of selling the same house more than once, then the following tips should prove helpful.

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Be sure about your decision

One surprisingly common reason for house sales falling through is simply that people change their minds. So, although it may sound obvious, make sure you actually want to sell your home, before you put it on the market.

Also, make sure you have a clear idea of how much you would like to sell it for (as well as the lowest offer you will accept). If you don’t have some firm figures in your mind then you are much more likely to back out of a deal after you’ve accepted it.

Exchange contracts early

Selling a house can be a long, drawn out process, with lots of different stages on the way to completion. There’s getting the house valued, putting it on the market, arranging viewings, having it surveyed, and a whole host of other duties to be performed.

One of the ways to improve your chances of completing a sale to is exchange contracts as soon as possible in the buying/selling process. Once you’ve exchanged, the purchase or sale of a house is legally binding and a date for completion is set. Pulling out of a purchase after contracts have been exchanged is extremely rare as there would be large penalties involved.

Cut out the middleman

A less common way of preventing your sale from collapsing is to cut out estate agents altogether. Rather than going through the traditional process of selling a house, there are alternative options that result in quicker sales and are less likely to fall through.

There are a number of organisations, for example, that boast “we buy any house,” with many of them guaranteeing you a cash offer so you can finalise the sale quickly, sometimes in less than a week. This is ideal if you need money fast, are having trouble selling a property through traditional methods or simply can’t bear for another sale to fall through.

Avoid chains if you can

One of the most common reasons for property sales falling through is due to a break in the sales chain. A chain occurs when a sale is dependent on another transaction happening first. If possible, it is good to try to avoid property chains but if you cannot, make sure you are upfront and honest at all stages to reduce the likelihood of the chain breaking.

A property sale or purchase is a major transaction – perhaps the biggest that you will ever experience. Watching one fall through can be extremely disheartening, but there are steps you can take that will bring your sale closer to completion.


8 Ways You Can Get As Much Cash As Possible For Your Home

If you’re selling your home, then of course you want to ensure you get as much cash as possible. These 8 tips will be a huge help in ensuring you get what you deserve for your home. Read on to find out what you need to do:

  1. Set A Reasonable Starting Price

Many people go about setting a much higher starting price for their home than they really want. They do this because they think that people will haggle with them anyway, and want to ensure they get a reasonable amount. However, setting a starting price that is too high can deter buyers, and real estate agents may think you’re unwilling to negotiate. Make sure you set a reasonable starting price so you don’t scare buyers off.

  1. Make Sure Your Curb Appeal Is Up To Scratch

Your curb appeal should be up to scratch if you’re going to get as much as possible. Make sure it’s tidy. Get rid of weeds, and plant new flowers. Make repairs. Add new slabs, maybe even a new letter box. Paint your door. There are all kinds of things you can do to improve your curb appeal.

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  1. Use All The Senses In The Buying Process

The buying process usually has a lot to do with the experience a potential buyer has in the home. If you help enchant all of their senses, they will be more likely to put in an offer. This is why many people bake fresh bread or cookies. It makes the house smell great and makes a potential buyer feel at home!

  1. Clear It Out

Make the house as empty as you possibly can. It might not be possible to get rid of all of your belongings, but be really vigilant. The emptier the space, the more a potential buyer will be able to see what they can do with the space. This includes clearing out storage areas.

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  1. De-personalize

Take down pictures of friends and family. Make kid’s rooms look neutral. De-personalizing might not be a nice experience, but it’s going to ensure a potential buyer can picture themselves in this house, and figure out what they can do with it. You can make it difficult for them if you fail to de-personalize.

  1. Be In It For The Long Haul

You may need to be prepared to have your home in the market for months if you want to get as much as possible for it from a potential buyer. The only other option if you want to sell your house fast, is to sell to a home buying company.

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  1. Make Repairs and Renovations

If you can make repairs and renovate important rooms like the bathroom, it’ going to be more attractive to potential buyers. If you have added new features and modernized the place, chances are, you’ll get a higher offer.

  1. Replace Appliances

Replace certain appliances with star rated energy appliances and buyers will be more interested then, too. It gives a potential buyer one less thing to worry about when they move in.

If you don’t want to go through the hassle of doing all of these things and sell as quickly as possible, then you may just need to find a company that will give you cash for your home. Thanks for reading!


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