Tag Archives: real estate

Buyer’s Remorse: 2 Things You Can Do to Avoid It

a man in despairBuyer’s remorse is not an uncommon occurrence. In the United States, for example, 44 percent of home buyers develop it. Due to lack of data, it’s hard to measure this rate among Filipinos. One thing is for sure: regret in real estate means a potential loss of money.

A buyer’s remorse on real estate has a significant impact on a person’s finances. Unlike other purchases, you may not be able to return the property to the developer. In some cases, you need to look for someone who can assume your contract.

The good news is that it’s completely avoidable. Here are a few steps:

1. Read reviews

Getting as much information as possible is important before making any big purchase. If you’re planning to buy a house in Cavite, for example, you may want to read reviews about Lancaster New City, one of the premier residential developments in the province.

Find out what makes the properties different from the others. Know where they are located, how much they are, and how fast you can secure the home. Can you look forward to a full support from the developer? Who are their agents or brokers? Can they be trusted as well?

The reviews can help you make a more informed decision. Should you be interested to buy, you can ask the right questions from the developer or agent.

2. Perform due diligence

One of the biggest reasons for buyer’s remorse is the lack of due diligence. You didn’t exhaust all information you can glean to help you make the right decision. Unfortunately, in the Philippines, there’s no due diligence checklist available. But the Housing and Land Use Regulatory Board (HLURB) provides some helpful ideas.

First, make sure the agent or broker, as well as the developer, has been registered in the agency. The developer also needs a license to sell, which is also issued by the HLURB. It’s not enough that the company has a business permit.

Obtain a detailed map of the housing area. The last thing you want is to buy a house in a flood-prone community. Where will your future house be? Is there an access road available? Will the roads in your subdivision, for example, be private?

You’ve worked hard for the money you have right now. You don’t want to waste it on an investment that you don’t or should not have in the first place. Doing these two can already save you from the hassle and heartache that comes with a buyer’s remorse.

3 Top Instances to Walk Away From A Deal When Buying Land

Land for sale signageWhen it comes to making a deal on a real estate property in Rockport, TX, it’s all glitz and glamor. The same, however, cannot be said of due diligence. It’s the reason why so many investors make acquisitions that they end up regretting after making the purchase. Here are three top instances you should walk away from what once seemed like a decent deal when buying land.

The deal suddenly gets too expensive

If, when you spotted that prime land for sale, it was well within your budget, but it has now become too expensive, then it might be advisable to walk away. Sometimes, this case scenario is occasioned by the presence of multiple bidders for the land. Don’t let a big ego get in the way of your rational thought when someone outbids you.

The property has too many usage restrictions

Part of your due diligence should be finding out what zoning requirements are in place for a vacant piece of land. If, in the course of your negotiations for the land you realize that there are too many stringent restrictions, think twice before proceeding. Remember you want the piece to serve your needs, so take a walk if it won’t.

Some public utilities are absent

Buildable land must have access to the staples of decent living. That means you want to have access to water, electricity, sewer, gas, and phone. Without one or more of these utilities, then you’ve lost a huge portion of your land’s usability and value. Don’t even think of putting your money in such an investment.

Vacant land may be full of superior benefits when bought at the right price and time. However, it’s crucial to be sure that you’re buying the right piece of land, so you don’t land yourself in a myriad of problems.

Salt Lake City Joins Top Housing Markets as FHA Raises Loan Limits

Paper with words fha loanRealtor.com ranked Utah’s capital as the top 6th housing market in the U.S. for 2018 when the Federal Housing Administration (FHA) plans to increase loan limits in almost every part of the country.

The online property portal listed Salt Lake City among the “hot” markets for homebuyers, based on its National Housing Forecast report. On the other hand, the FHA will implement the new limits on or after Jan. 1, 2018.

Easier Times Ahead

Danielle Hale, Realtor.com chief economist, believes that home buyers in Salt Lake City will find it easier to purchase properties next year. This expected scenario will stem from a bigger housing inventory, which will help in controlling price hikes and moderately hasten home sales, according to the report.

The city’s real estate market also reflects a strong economy, as prices and sales are expected to grow 4.5% in 2018, Hale said. This will exceed the anticipated nationwide average for property price growth at 3.2%, down from around 5.5% this year. Prices in Salt Lake City may be higher than the national average, but an FHA loan lender may help your budget for a home purchase.

Higher Limits

FHA has expanded the coverage of higher loan limits in 2018 to 3,011 counties in the U.S from 2,948 counties this year. Only 223 counties will still have the same limits on borrowed funds.

The agency will raise the ceiling amount in expensive areas to $679,650 from $636,150 in 2017, while the minimum amount will increase from $275,665 to $294,515. The current minimum amount comprises 65% of the national conforming loan limit of $453,100, which applies to counties where 115% of the median home price amounts to less than minimum limit.

Conclusion

Salt Lake City’s housing market will be in-demand next year, which is why home buyers should be ready to compete with rival bidders on property listings by planning their financing strategies.

Licensed Conveyancers vs. Solicitors: Is There Really a Difference?

Big Ben and Westminster Bridge at dusk, London, UKWhen selling, or purchasing a property in England, you are required to appoint a property lawyer to represent you.

Choose a Licensed Conveyancer controlled by the Council for Licensed Conveyancers or a Solicitor regulated by the Solicitors Regulatory Authority first, then you can compare conveyancing expenses and costs.

Both are entirely controlled, insured and function to the same conveyancing procedures and practices.

The Responsibilities

Licensed conveyancers are dedicated property lawyers who mostly accept residential conveyancing responsibilities, while some undertake probate and commercial property work. All licensed conveyancers are office-based to guarantee consistent and great client communication every time.

Meanwhile, property solicitors do not specialise in conveyancing and assume other responsibilities. This includes personal injury and matrimonial work besides conveyancing.

This generally means that they are either out of the office or in Court when you need them, which causes frustration towards client communication.

Some solicitors specialise in conveyancing and are a part of the Law Society Quality Standard that makes them a counterpart of Licensed Conveyancers.

The Fees

The variations between conveyancing costs charged by Licensed Conveyancers and Solicitors do not differ that much. If you do try to compare the average conveyancing costs, Licensed Conveyancers offer a much cheaper and reliable service.

This economical rate can be quite inviting, but make sure that you get the best possible service there is. Do keep in mind that the strain of selling or purchasing a property could get even worse if you choose an undependable conveyancing service.

If you find yourself seeking a Solicitor or Licensed Conveyancer, understand the differences between them first. This way, you will know what to expect with their responsibilities and how much everything will cost you.

Just make sure that you choose the one that prioritises your needs and does not see you as just another client on their sleeve.

Real Life Monopoly: Investing in Single-Family vs. Multifamily Homes

single familly homeInvesting in real estate is a lucrative business—but it’s also a risky pursuit. That means when it comes to choosing a specific type of property to invest in, you need to know which one will give you the biggest bang for your buck.

One of the huge dilemmas of property investors is whether to invest in a single-family (SFH) or multifamily home (MFH). Experts suggest investing in both—as both options prove to be worthy investments and make great additions to your diversified investment property portfolio.

But if you’re only trying to purchase one type of property right now, which one should you choose?

Let’s break down what each option can do for you to help you decide.

Investing in a Single-Family Property

Single-family properties are easier to manage, and for obvious reasons. You only have one group of tenants to deal with, especially when it comes to payments and plumbing issues. This type of property is also much easier to sell compared to a multifamily home, as it provides a larger pool of interested buyers to choose from.

Apart from these, buying single-family homes are much more affordable; most investors, in fact, already have the cash themselves to slowly accumulate SFHs over time.

Single-family real estate, however, poses an increased risk of vacancy. Unlike with MFHs, vacancy in an SFH means you will be paying for all the upkeep and the bills yourself. This can make it difficult to control your cash flow as well.

Investing in a Multifamily Home

According to the experts at bmfcap.com, those who invest in a multifamily home can enjoy the ability to maximize mortgages.

Government-backed mortgage lenders Fannie Mae and Freddie Mac limit the number of mortgages an individual can have to ten at a time. Most mortgage companies need to conform their guidelines, which means investing in an SFH is actually not a practical choice if you don’t have the money to pay for it in one swoop.

MFHs also have a larger pool of tenants compared to SFHs.  Investing in a multifamily property is convenient as well, because you only have to travel to one location to resolve an issue with a tenant.

Weigh every point in this article, and you’ll find that multifamily homes are actually a better investment. In the board game Monopoly, a winning strategy is to convert four of those small green houses into one large red hotel. It seems the same strategy can be applied in real life.