Property

Real Property Remains a Solid Investment

Investments in real property are generally considered solid options because they build equity over time. Land titles are tangible proof that the holder possesses something of value. However, it is crucial for property owners to acquire property at the right price to make sure that the investment pays off given time.

Property Assessment Defines the Price

When it comes to real estate, valuation is never random even when bidding wars ensue for highly desirable properties. Property assessment is both a science and an art. It is a science because solid numbers, historical and current data are used to come up with the property’s value.

Valuation metrics may take recent sales of comparable properties into consideration. It may also factor in local economic conditions and business initiatives that would impact property values.

There is some creative input involved when it comes to property valuation. Intangible factors and subjective considerations will come into play when choosing which recently sold properties to include as comparable sales to compute for property value.

Uses of Property Valuations

The valuation metrics used will vary depending on the type of property and purpose of the valuation. Assessment of real properties can be the basis for setting market price when selling a home. In this case, it is important to use reliable values culled from prices of similar properties that recently sold within the same market area. This determination becomes an issue in a down market when few properties are changing hands. Property assessment can also pose a problem for unique properties that have few comparable estates within the area.

Property valuation is undertaken by the local taxing authority to determine property tax for the upcoming year. In this case, the considerations will include improvements made on the property and on surrounding public and private properties. The current market climate will also come into play in the analysis of values. In any case, sale price valuation will usually differ from taxable valuation.

Property Search in a Digital World

Property ownership has played a big role in the fortunes of many families throughout history. Ownership of real estate is the core of the prototypical American dream. Land titles have been a source of pride, family feuds and financial skullduggery.

Fortunately, technology has changed the way property is acquired, exchanged and analyzed. Record keeping is mostly digitized, as are detailed maps of populated areas. Property searches are automated, making information accessible to anyone with access to the Internet. Access to information has improved decision-making on the part of buyers, sellers and their agents.

The accuracy and timeliness of market analysis and the resulting valuation has improved with easy access to up-to-date reports. In addition, application software capable of crunching statistics into usable reports have leveled the playing field for buyers and sellers in the real estate market.

The prevalence of portable digital devices reduced the time it takes to complete a transaction from property search to closing. Social media energized the marketing aspect while improved communications made transactions more transparent.

Technology has transformed the business of buying and selling property making it more efficient and productive for all parties involved.

Featured images:
  •  License: Royalty Free or iStock source: http://www.depositphotos.com
  •  License: Royalty Free or iStock source: http://www.depositphotos.com

A Geowarehouse subscription includes thorough and in-depth reports that make it easier for you. From a property assessment to searches, Geowarehouse provides real estate and non-real estate professionals the information and tools to make their work easier


How Much House can you Afford?

How Much House can you Afford?

mortgage_loanWhen the economy in the United States started to take a turn for the worse in 2008, the housing industry was at the forefront of the problem. Being a bit more specific, it was the mortgage industry that took down a good amount of once-profitable banks, throwing the whole housing industry into turmoil. But how could one industry knock down the strongest economy in the world?

Cause of the Problem

The simple answer would be greed. Both lenders and homebuyers were greedy during the housing boom, as banks often lent money to those who could not afford the monthly payments. Banks and the media sold the idea of the American dream to homebuyers, and approved those same people for amounts that were much higher then they truly could afford. In turn, foreclosures started to pile up at an alarming rate until the banking industry could no longer afford the new amount of failed mortgages.

The good thing about history is that people can learn from the mistakes of those before them and hopefully not make the same ones again. Those who are looking to purchase a home, now that the market is starting to rebound, need to really sit down and analyze their budget to truly make sure that a new mortgage payment is within reason. But there is more to a affording a new home then just the amount of the mortgage.

How Banks Qualify a Lender

Banks use something called a debt-to-income ratio to determine how much of a monthly mortgage payment someone can afford. The ratio takes all of the potential homebuyers secure and unsecured debt, such as credit cards, auto loans and personal loans, and adds up the monthly payments on those. Then, the lender takes the total monthly income of homebuyer to come up with a debt-to-income ratio. If someone’s expenses were $300 from an auto loan, $100 in credit card payments and $75 for a personal loan, the total expenses would be $475. For this example, we will use an income of $4,000 a month, so the ratio would be 475 to 4000, or about 12 percent.

Most banks want the homebuyer to satay under 36 percent, including the new home mortgage. FHA loans, or Federal Housing Association loans, will stretch the percentage to 41 percent; however, they require the borrower to take out additional mortgage insurance on the loan. So, in the scenario above, that homebuyer could qualify for a payment up to around $1,000 a month, since that would bring the debt-to-income ratio to around 36 percent.

Hidden Costs in Owning a Home

Even though a person may qualify for a mortgage of a certain amount, that doesn’t always mean that they should max out the amount they were approved for. Besides the mortgage payment, a homebuyer has a lot more to consider when purchasing the home. First, they will have to purchase homeowner’s insurance, raising the cost immediately. Also, utilities may be more expensive at the new home compared to the old one, especially if the home is larger. Plus, if they are renting now, they may not have to pay all the utilities, but if they pay a home, all the utilities will be their responsibility. Finally, a new homebuyer needs to understand that the new home may have large, unexpected repair bills like a leaky roof or foundation. If they are smart they will have the problem fixed the right way by a pro like Tredent Contracting and it can put a strain on the budget unless they are prepared for it.

If a homebuyer truly wants to make a smart decision to avoid foreclosure, they should make a budget and come to a number they are comfortable with before even being approved by a lender. Then, as long as the lender approves the buyer for the predetermined payment, the homebuyer will be more comfortable knowing they can afford the payment. The main point for them to remember is to stick to their budget and not get caught up in the emotions of finding the “perfect” house and over spending.

Owning a home is still the American dream, and it is still within grasp for those who make wise decisions with their money. A buyer just needs to be smart and realize what they can afford before they jump into owning a home. When buying a home, the buyer just needs to make a conscientious, calculated decision, and they will be able to enjoy their home for years to come.

Bought the perfect home but can’t manage the lawn? That’s why Aaron Gordon writes on behalf of Champion Yard Service, where their services include Seattle lawn mowing.


Mortgage Loans That Impair Your Bad Credit

Mortgage Loans That Impair Your Bad Credit

Are you facing credit problems in the event of a bankruptcy or a home foreclosure? Or is that your credit score has dropped as a result of payment failure? Gone are the days when bad credit hindered your loan approval and lenders reluctant to approve your loans. Mortgage loans for people with bad credit have dissipated the taboo of good credit-mortgage loan. Few instances have shown that good credit can stoop down quickly to an average of 150 or more, but it is definitely possible to improvise your score and take advantage of a new mortgage loan. Bear in mind that repairing your credit is not the only means to avail a mortgage loan and the FHA —Federal Housing Administration has made it easier for individuals with a bad credit to qualify for a home loan.

This risk is apparent with the increase in economic crisis during recent years. You can definitely rebuild on the financial stats, however, this is going to take you sometime and qualifying for a loan in the span involves high rates of interest coupled with an increase in responsibility. Lenders in part have come to realize that this is a part of the economic process and there are mortgages, auto loans, personal loans and other types of credit that help individuals in undoing their bad credit with ease.

Credit score and mortgage loans

The role of credit score in mortgage loans is quite confusing. This is due to the fact that people with bad credit history have availed loans at competitive interest rates. There is a bit of contradiction that entails to the standard rules of bad credit, the mode of application and consideration.

On the whole, credit scores take the toll on the interest that can be charged with a loan. This implies that increased scores fetch a lower rate and the reverse holds true. This implies that although loan approval is independent of the score, it is dependent on the impact of the monthly payments discharged. In turn, the essence turns out lenders’ are not comfortable with increased deals.

Low rates of interest

Although credit scores have had a less impact, improvements are yet to be noticed for individuals with bad credit. Aside the factor of improving your score for a mortgage loan, there are a couple of factors that determine the risk of defaulting and keeping them to a minimal.

Improving on the first hand comes down to faithful payments of existing debts, which indicate lenders that approving your loan is not a bad idea after all. Say for instance, small payday loans could be taken and quickly repaid to gain a positive presence. The other way, you can go ahead with a larger consolidation loan that helps to pay off your existing smaller debts with ease.

Secured income is yet another way of demonstrating that you are capable of covering any mortgage loan payment efficiently on time. You can back up with evidence of your long-term employment, contract work, and demonstrate that nearly 40% of your income can be used to repay your loans.

Right lender

One of the most effective ways in getting a loan worked out at the lowest rates of interest is finding the right lender. This implies seeking help from the Internet as there are plentiful lenders in supply.

Getting hold of the right lender is definitely going to take time, however, thanks to the internet as the comparison sites make the task much easier.

This guest post is written by Jamie Anderson. She is an enthusiast blogger providing tips on credit card debt settlement as well as reduction and management of your debt.


Types of Mortgages in Singapore

Types of Mortgages in Singapore

Ever get confused by the massive amount of home loan packages that bankers sent you? In Singapore, there are more than 20 banks and financial institution that proves mortgages to home owners and the total amount of packages that they have would probably come up to about a hundred.

In general, home loan packages can be break down into 3 main types, fixed rate, variable rate and interbank market pegged.

1. Fixed rate

Your mortgage rate is fixed for a certain period of time, say 2years, 3 years or 5 years at a certain rate. The interest rate on your home loan reverts back to a variable rate after the fixed rate term. Typically the bank will required you to be locked in with them during the fixed rate period.

2. Variable Rate

Your mortgage is pegged to a bank’s variable board rate (BR) minus a certain discount, example. BR 4.5% – 3.2% = 1.3%. The discounts off the Board rate are usually tiered down in the latter years. You typically enjoy greater discounts within the lock in period with the bank.

3. Interbank Market pegged: Sibor and SOR.

Also a class of variable rate, but offers full transparency to borrowers as your mortgage rate is pegged to the interbank market rate.

Sibor stands for Singapore Interbank Borrowing Rate and SOR stands for Swap Offer Rate. Both rates are publicly available in the newspaper and the internet. Banks charge a certain mark-up spread over the Sibor or SOR rate. The Sibor / SOR rate is the cost of funds while the mark up spread is to cover bank’s operating cost with the nett of it as its profit.

Article by Keff : Mortgage Supermart Singapore. For a discussion on the best financing solutions for your Home loan financing, visit us at www.sgmortgagesupermart.com.


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