Monthly Archives: November 2017

Solid Foundations: Tips for Purchasing an Investment Property

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“A funny thing happens in real-estate. When it comes back, it comes back up like gangbusters.” So says American businesswoman and investor Barbara Corcoran. And it is true. The real estate world is like a series of intense waves, not unlike other investment venues like the stock market. Regardless of the housing tsunami’s up, down, and up again cycles, most experts agree that property is always a solid asset. Here are some excellent tips for surfing the waves of investment properties.

 

Research

If you can find a real estate agent with experience in flipping properties for a profit, that is ideal, but do your own research too. You are the best resource you have in this case. Much of the same information that an experienced investor has is available to you as well. It may be a little difficult to find for first-time property investors, but it is accessible.

Get advice and experience from friends or friends of friends that have ventured into property investment. Find out how they pursued their purchase and if they used any agent that they give the thumbs-up to.

Consider buying locally, as you undoubtedly already have the knowledge of the area from purchasing your first home. Use this experience to your advantage.

 

Budgeting

At the start, determine your financial limits for investing, allowing for unforeseen expenses that may arise from repairs and the like. A good way to do this is to calculate your fixed costs. That is, add up the expenses that you know you will have each month regardless of anything else. Then, you’ll want to create a number that represents the pesky expenses that creep in. Assume there will be maintenance needs every couple months and double that price to keep your wallet covered.

 

The Down Payment

Buying a second property is more challenging than your first home purchase because the down payment is higher. Investopedia.com’s columnist Tim Parker elaborates, “You will need at least 20 percent, given that mortgage insurance isn’t available on rental properties.”  Since the down payment percentage is quite a bit higher on an investment property, this is an expense you’ll want to factor into your budget.

 

Do your own repairs

Wherever possible, perform your own maintenance on your new property. Unless there is a complicated job like an electrical-related repair that is not only advanced but potentially dangerous, a wealth of handyman tutorials are readily available on YouTube. You can find step-by-step repair videos on virtually everything, and it can save you a ton in the long run. Tim Parker says, “Estimate maintenance costs at 1 percent of the property value annually.” Every time you patch up a problem yourself, you are doing your budget a favor.

 

Summary

One of the primary advantages of purchasing an investment property is that the urgency of a place to live is not stressing you like it did with your first home. Not that there isn’t a whole new set of problems with an investment house, but don’t let anyone pressure you into purchasing until you feel good about the decision. Take your time. Weigh your options and negotiate the price down. Remember that every little bit you can deal is financing you can invest in your new property and your future.

Keeping up Appearances

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Fall Yard Beauty Tips

Leaves may be falling, but house prices are staying strong according to a number of real estate-tracking websites. Keep those values high while also keeping your yard beautiful during the autumn season. During the spring and summer it’s easier to maintain the exterior appeal of your home since everything grows more effortlessly with the help of the monsoons. However, the later end of the year poses more challenges to continue the manicured appearance outside. Beautify your home’s autumn look with these useful tips.

 

Yard Clean Up

Raking leaves is the most stereotypical image we think of when we hear the word “autumn”. It’s a cozy activity and more importantly essential care for your yard and lawn. Dead leaves will block necessary sunlight to your lawn so clearing them out is one of the most basic favors you can give to your yard.

 

Great Opportunity to control weeds

The fall is a great time to literally weed out the unwanted things in your garden. Clear out the dry stalks and dead leaves on your floral bushes or climbing vines. Once these are out of the way you can easily identify the pesky weeds that are still squatting in your garden.

Because the ground may be hard at this time of year, you may need a sharp, forked tool to stab into the roots of these weeds before you can comfortably pull them out by hand. Extract these weeds and add them to your compost pile.

 

Autumn Lawn Care

Now is the ideal time to repair damaged patches of your lawn. Whether from dryness or perhaps a dog looking for a lost bone, lawns have a tendency to get thin or completely dead in some areas for a variety of reasons.

Reseed these areas now for the best results. Without as many weeds, fall offers the best time to regenerate the dead patches of your lawn. The mild Arizona autumn weather also gives new seedlings a better chance to root themselves before the blazing summer. For even better results, feed your lawn twice during the fall to support not only the new growth but revive any patches that may be withering from the summer heat. Allow about eight weeks between feeding to achieve the healthiest results.

 

Thoughts to ‘Leaf’ With

Some yard care in the autumn is harder but thankfully nature gives a hand with some of it, such as clearing out the dead wood so-to-speak. Whether it’s just for maintaining an attractive real estate listing or just the satisfaction of a beautiful view while you sip on your hot cocoa, a little outdoor maintenance makes your fall a better experience.