The new investment environment appears hostile to people looking to acquire property.

The government has unleashed a Trojan horse of policies galloping through the marketplace, destroying anything in its path. So, anyone looking to invest in property needs to be innovative. Some of the draconian policies are as follows.

 

Rethink Property Investment

 

First, the Bank of England is now intent on pursuing macro-prudential measures with a

view to curbing excessive credit growth and encouraging reasonable borrowing in this

‘low for long’ interest rate environment. The Financial Policy Committee (FPC) has

introduced regulations requiring banks not to give residential mortgage to borrowers

which are more than 4.5 times their income. It also requires banks to ‘stress test’

borrowers’ ability to repay the loan. Some banks now ask borrowers to raise 25%

deposit before applying for a loan. As regards BTL mortgage, how much an investor

can borrow from the bank would depend on how much rent the property generates.

Most lenders expects the rent to be 25% more than the loan.

 

Second, the government introduced the Finance Act 2015. As part of that Act,

Buy-to-let (BTL) landlords will be prevented from deducting their mortgage interest

costs from their rental income when calculating taxable profit. This approach makes

it unattractive to invest in the rental market.

 

property investment

 

The policy which appears more destructive to the market than any other is the introduction

of the new stamp duty surcharge. Since 1 April 2016, anyone buying a second home

would pay a higher rate of stamp duty, thereby making the cost of buying beyond the

reach of ordinary people. This change of policy not only affects BTL investors but

also some First Time Buyers (FTB). For example, a wife who is a FTB would pay

the new surcharge if her husband already owns a property.

 

As already stated, anyone now looking to invest in property needs to be guile, tactful

and innovative to overcome these hurdles. Lenders now look at borrowers’ outgoings

and their income when determining loan affordability. FTB and BTL investor should

therefore be moderate in spending as the last 6 months of their bank statements will

be examined.

 

 

Also, putting down a large deposit will facilitate a favourable mortgage terms.

However, some banks are now giving 100% mortgage. For instance, Barclays Bank

has recently introduced the 100% mortgage, which is good news for investors.

Additionally, other lenders such as Nationwide and Halifax have relaxed the age

restriction and have raised the limit to 80 years old, making loans accessible to older

buyers.

 

The major challenge is being able to surmount the stamp duty surcharge hurdle.

Most FTB can surmount this hurdle with ease since they are exempt from paying

the extra 3% surcharge. They are nonetheless required to pay the lower stamp duty.

But where the purchase price is below £40,000, stamp duty is not payable.

 

Another way to overcome paying the stamp duty surcharge is to negotiate with the

developer (if the property is newly built) or with private sellers for them to cover the

bill.

 

Further, if a mixed investment (i.e. part residential and part commercial property) is

purchased, the extra surcharge is not payable. And a property developer who buys a

commercial unit and convert it to residential flats would not have to pay the extra

stamp duty surcharge. This effectively reduces the cost of purchasing property.

 

Lastly, a property owner who lives in his main home can rent out the main house and

buy another property. Although the stamp duty surcharge will initially be paid, this

will be refunded if the original home is sold within 18 months. In the meantime, the

owner can earn income from rent received within the 18 months window.

 

In a nutshell, a buyer who is able to overcome the current challenges will likely enjoy

the fruit of his labour. For instance, in early 2015, the English Housing Survey found

that increased wealth was generated from property investment. The total value of

Britain’s housing stock is estimated at around £6trn. Property value in Britain increased

by £385 billion since last year. So, any buyer who takes that small step towards property

investment effectively takes a giant step towards wealth creation.

The plethora of government policies will hurt the UK property market, says Godwin Okri

 

The free-market economist, Friedrich Heyek once opined that the free market is not just the most efficient way to organise economic activity but also a guarantor of personal liberty. Most free market economists (including monetarists, Keynesian and neoclassical economists) agree that intense and regular State intervention in the free market could be destructive. So, how “free” is the UK property market?

 

The housing shortage and affordability crisis have been identified by the Government as key problems in the UK property market. As a result, the Government has introduced a plethora of policies as panacea to cure the (alleged) ills of the property market, which are the following:

 

Firstly, the Government has introduced the Housing & Planning Bill. This Bill heralds the intention of the Government to build affordable homes for first time buyers (FTB) and to speed up the planning process with a view to delivering more housing.

fence-940225_1280

 

Secondly, the Government introduced the Help-to-Buy Scheme to encourage FTB access the property ladder. Under this Scheme, FTB can get interest-free loan of up to 40% of the property value provided the FTB has 5% deposit.

 

The Help-to-Buy ISA was also introduced to gives FTB the opportunity to receive 25% top up payment from the government when they save £200 a month in a dedicated ISA. This would enable FTB raise the deposit required to purchase a home.

 

Furthermore, the government announced that anyone buying a second home would pay a higher rate of stamp duty. This was introduced in order to keep a tight rein on Buy-to Let investors (BTL),

 

Fifthly, as part of the Finance Act 2015, BTL landlords will be prevented from deducting their mortgage interest costs from their rental income when calculating taxable profit.

 

Lastly, as part of the Immigration Act 2014, all BTL landlords in England are required to check the ID of new tenants before the commencement of their tenancy to ensure they are legally entitled to live in this country. A fine of £3,000 is payable for any breach of this rule.

 

Are all these laws and policies necessary in a free market economy? Have these policies gone too far so as to have ‘crossed the Rubicon’?

bad-langensalza-775672_1280

Whilst there is economic benefit for building more affordable homes, it is difficult to see how all the other laws and policies are justified in a country of free enterprise. Firstly, the Help to Buy Scheme and ISA is premised on the false assumption that owning a house is good for everyone, even if they cannot afford it. The Scheme is a government loan for five years. What happens after the expiration of five years or if the mortgage rate is hike? This will cause a flood of repossession, the very thing that caused the 2008 financial crisis.

 

The desire to increase the number homeownership above the ‘natural’ market rate is likely to lead to a lot of economic pain. This is a form of “creative destruction”. In his book “The Financial Crisis and the Free Market Cure”, John Allison refers to actions of this kind as a misallocation of resources which is destructive to the free market. As Paul Ormerod (author of “The Death of Economics”) would say: “When the State attempts to take on that role, it can have the opposite effect to the one intended, making people depend on the State and unable to help themselves.”

 

Another destructive policy by the government is increasing the stamp duty rate for second homes. From 1 April 2016, anyone buying a second home will pay higher rate of stamp duty. This

will lead to unintended consequences which will be destructive to the housing market.

 

For a start, some BTL investors may transfer the increased expense to their tenants in the form of higher rents. This is destructive to the market as it will lead to cost-push rent inflation, which is   counterproductive in economic terms. Secondly, the fundamental error in raising stamp duty on residential property may limit the supply of affordable homes: increasing stamp duty makes property purchase more expensive, which may drive down demand. As demand falls, developers may be reluctant to risk building more affordable homes, with the result leading to fewer affordable homes being built. It is important to note that developers assess their equity multiples when considering whether to build homes. The equity multiple is a ratio that compares equity with leverage. Dampening demand by increasing stamp duty will affect this ratio.

 

Furthermore, the policy by the government preventing BTL landlords from deducting their mortgage interest costs from their rental income when calculating taxable profit goes against established accounting principles. The usual accounting rule is that cost is deducted from income in order to arrive at a profit. Treating gross income as profit runs contrary to this principle and is illogical. The policy is also counterproductive because BTL investors may increase their rent(s) to take account of this illogical policy. The government has failed to factor in human nature; eventually the laws of human nature are what drive all economic activities.

 

Lastly, the requirement that all BTL landlords check the ID of all new tenants before the commencement of the tenancy is simply adding more layer of bureaucracy and red tape on them. For instance, there are many unanswered questions: Are EEA or EU prospective tenants entitled to live in this country? Would BTL landlords to responsible to checking whether the documents are forged? Where a landlord engages a managing agent, who would be liable for breaches of this rule?  Further, the additional expense the majority of the 2 million BTL landlords may incur, as a result of this illogical policy, may have to be borne by innocent tenants.

 

In sum, the plethora of Government policies will hurt the UK property market. The key message here is this: the Government should not interfere in the market process. A free enterprise society creates an environment of freedom upon which creativity flourish. This guarantees “the greatest happiness of the greatest number”.

 

 

CHICAGO PROPERTY FOR SALE: $35k

Description

2-story Townhouse. 2 Parking Spaces, 1 Large Storage Shed in back of property. Ample Street Parking in front of property. Kitchen includes refrigerator and stove / range. No H.O.A and No Monthly Assessments. Property selling “AS IS”. Seller requests Mortgage Preapproval or Proof of Funds (for Cash Offers). Seller will not provide Survey or Termite Inspection.

Chicago Property for Sale

Key Facts

  • Condo/townhome/row home/co-op
  • Year built: 1962
  • Price/Sq Ft: $36
  • Status: Active
  • $35,000

Schools

Chicago Property for Sale

Bedrooms

  • Bedrooms (All Levels): 2
  • Bedrooms (Above Grade): 2
  • Master Bedroom: 15×15
  • 2nd Bedroom: 15×11
  • Master Bedroom Level: Main Level
  • 2nd Bedroom Level: Main Level
  • Master Bedroom Flooring: Carpet
  • 2nd Bedroom Flooring: Carpet
  • Bedrooms: 2

Bathrooms

  • Full Bathrooms: 1

Kitchen and Dining

  • Kitchen Level: Main Level
  • Dining Room Level: Main Level
  • Dining Room: Combo
  • Kitchen: 15×6

Other rooms

  • Living Room: 13×12
  • Living Room Level: Main Level
  • Total # Of Rooms: 5
  • Living Room Flooring: Carpet

Building and Construction

  • # Stories: 2
  • Exterior Building Type: Brick

Exterior and Lot Features

  • Lot Dimensions: 21 X 125

Garage and Parking

  • Parking Type: Space/s

 

Chicago Property for Sale

UK Housing Market – Although ‘love’ is sometimes a lustful word “a thousand times misused”,

this is certainly not the case when it comes to the British love affair with bricks and mortar.

The first time buyer (FTB), buy-to-let investors (BTL), the government and the Bank of England (BOE) are all economic ‘actors’ playing a key role on the property stage. All these actors are hoping for a better future, against the backdrop of changes and uncertainty in the current UK housing market. Though it is difficult to predict, there are various factors that can act as ‘pointers’ as to how the housing market may perform in future. They are:

  • The global economy;
  • The UK economy;
  • Interest rates;
  • Brexit
  • Changes to stamp duty;
  • Changes for the mortgage interest restriction;
  • The Housing and Planning Bill

 

UK Property Market

(i) The Global Economy

It appears the world economy is now slowing down: the price of oil is falling, which is bad news for oil companies; quantitative easing embarked upon by many central banks are now being scaled back; the Russian ruble has collapse in value; the Gulf investors, who have invested heavily in the UK property market, are also repatriating their money home; and China’s economy is slowing. Chinese government is limiting the amount an investor can take out of the country to $50,000 (£34,000) annually. If this continues, this may affect the UK housing market.

 

(ii) The UK Economy

Whilst the global economy may be slowing down, the UK economy is reasonably sound: unemployment is 5.2%, which is the lowest for decades; the growth rate of the economy is around 2%; the interest rate is the lowest for years; etc. It is therefore of no surprise that house prices are rising. The average property price in the UK is now almost £300,000. It could be argued that the health of the UK economy can cancel any adverse impact from the global economy.  The economy of China or Russia may be slowing, but the exposure to these countries are relatively small.

 

(iii) Interest Rates

The Bank of England has kept rate at 0.5%, which is the lowest rates have ever been. The fall in the rate of inflation makes any rate hike unlikely in the foreseeable future. The collapse of the price of oil has contributed to the deflationary trend. This makes mortgage bills low, thereby creating a great environment to invest in property.

 

(iv) Brexit

Brexit is a shorthand for Britain exiting the EU. What would happen to the property market if we decide to get out of the EU?

 

Existing the EU may lead to UK businesses being imposed with import tariff, which may affect profit and may affect jobs. EU exit may also affect London as a major financial centre. Banks, such as Deutsche Bank (which is the largest employer in the financial sector in London) may leave the UK. This could adversely affect the economy and, eventually, the property market.

 

The opposing view argues that each year the UK contributes about £4.6bn to the EU, which would be saved if we leave the EU. This would benefit the economy. Secondly, the UK runs a trade deficit with our EU friends to the tune of £3bn because we buy more EU goods than we sell to them. The bulk of our international trade are from countries outside the EU.

 

We have to wait and see whether we remain in the EU and the effect this could have on the property market.

 

house-872066_640

 

(v) Changes to Stamp Duty

From 1 April 2016, stamp duty will be increased from 2% to 3% for second home worth £250,000 (higher stamp duty will be payable if the property price is more than £250,000). This would clearly affect the BTL market. However, the winners are the FTB, since this does not quite affect them.

 

(vi) Mortgage Interest Restriction

In the Summer Budget (2015), the Chancellor announced that restrictions would be placed on the amount of tax relief landlords could claim on mortgage interest. Most of Britain’s 2 million landlords have mortgages. Those of modest income will clearly be hit hardest by this change.

 

(vii) The Housing and Planning Bill 2015-16

This Bill heralds the intention of the government to build starter homes as part of the s106 agreement and, amongst others, speeding up the planning process with a view to delivering more housing. The Bill focuses on home ownership chiefly for FTB. If the purpose of this Bill is achieved, this would see more affordable homes built, and may temper property prices.

 

UK Property Market

 

CONCLUSION

In view of the above, what the future holds may depend of the economic actor concerned. As regards BTL investors, on the balance of probabilities, they may struggle in the immediate future. The introduction of the ‘Right to Rent’ requirement, the changes to stamp duty and the restrictions on mortgage interest relief may be steps too far. However, intelligent investors may swim (rather than sink).

 

As regards FTBs, they are likely to come out winners because of the introduction of ‘starter homes’, Help to Buy Scheme and the Help to Buy ISA. However, those FTBs who are unable to raise the deposits may not be able to benefit from these changes.

 

The Government and BOE position may remain unchanged. The government may achieve its goal because of the effect changes to stamp duty and mortgage interest may have on the BTL market. And the continuing fall of oil prices and deflation may prevent the BOE from hiking interest rates.

By Godwin Okri, author of “Investing in Property with Strategy” Amazon. £6.99 © 2016

Home Ownership: A Very British Problem…

Home Ownership – When Henry George was writing on how monopolistic land ownership could cause poverty, little did he know that his daughter (Elizabeth Magie) would go on to design the game of Monopoly in the 1800s as a way of illustrating how monopolistic land ownership could cause social pain.

 

Having a well-functioning housing market is not only important for the economy, it also has wider socio-political benefits. This is why economists and policymakers convulse when any housing issue is turning into a crisis.

Home Ownership Nest Egg

Currently, the UK property market is characterised by soaring property prices, limited housebuilding and a growing population. The average property price in London is £500,000; in the UK, the average property price is £300,000, an increase of 7% year-on-year. The average salary in London is £30,338 but the salary needed to buy a terrace property is £142,000. The whole thing is causing affordability crisis and is threatening Britain’s reputation as a nation of homeowners.

.

The historic failure to build more houses, the increase in population, the influx of foreign buyers and economic policies pursued by successive governments have all contributed to the housing crisis today.

 

The net effect of this crisis is this: first time buyers are finding it almost impossible to access the property ladder; this is causing generation rent, which goes against the principle of “property owning democracy” promised.

 

Home Ownership houses

 

A new All-Party Parliamentary Group for housing and planning has been set up to examine ways of tackling the housing crisis. The Group has to find a solution. But what is the solution?

 

Bank of England: According to the Bank of England (BOE), pursuing macro-prudential measures are important. The BOE is focusing on curbing excessive credit growth and encouraging reasonable borrowing in a “low for long” interest rate environment. In order to prevent the housing market from overheating, last summer the Financial Policy Committee (FPC) introduced regulations requiring banks not to give residential mortgage to borrowers which is more than 4.5 times their income. It also requires banks to “stress test” borrowers’ ability to repay the loans. The FPC is asking for more powers to control the buy-to-let market. The “powers of direction” would allow the FPC to make regulations on, inter alia, debt-to-income and loan-to-value ratios.

 

Government Policy: As an attempt to solve the housing crisis, the government has introduced a number of rules and policies:

 

From the supply side, the Chancellor announced in the Autumn Statement (2015) that he will double the housing building budget to £2bn ($3bn) to build 400,000 new affordable homes by 2020 of which 200,000 would be starter homes, which can be purchased by FTB at 20% discount. The discount would only apply if the property price is below £250,000 outside London or £450,000 if the property is in London.

 

Home Ownership building

 

From the demand side, the government tries to differentiate between FTB and buy-to-let (BTL) investors. To encourage FTB access the property ladder, the government introduced Help to Buy Scheme. Under this Scheme, FTB can get interest-free loan of up to 40% of the property value provided s/he has 5% deposit.

 

Help-to-Buy ISA was also introduced to further assist FTB. It gives FTB savers £50 bonus for every £200 saved up to £12,000.

 

The government believes that BTL investors have contributed to the housing crisis. As a result, a number of changes have been introduced to control the exuberance of the BTL investors: Firstly, in the summer budget, the Chancellor announced that a restriction would be placed on the amount a landlord could claim on the mortgage interest. This was followed by the autumn statement when the Chancellor announced that anyone buying a second home would pay a higher rate of stamp duty.

 

But are the government policies the right solution for the housing crisis?

 

Solution: Simply building 400,000 houses alone may not solve the problem in the long run. Increasing the numbers of FTB accessing the property ladder would eventually “consume” the 400,000 houses built. In the end, we will be back to square one! The government should also be encouraging a renaissance of small to medium builders to undertake building in suitable small sites.

 

However, the key panacea is to decentralise commercial and political activities. Most activities are centred around London. The government speak about the Northern Powerhouse. Thus far, nothing has been done to show that this is not just rhetoric. Decentralisation would spread people around the UK and relieve the housing pressure in London and the South East.

 

Secondly, stamp duty should be set locally to take account of regional differences in economic power.

 

Thirdly, incentive should be given to BTL investors who invest away from London and the South East.

 

Lastly, limit should be placed on the number of properties a BTL invest can own in London and the South East.

 

Having said all these, it is difficult to know whether the policymakers will ever listen. As they say: you can take the horse to an African river, but you cannot force it to drink….

 

Godwin Okri – author of the book “Investing in Property with Strategy” £6.99 Amazon

 

Panacea for the UK Housing Crisis…

UK Housing Crisis – When Henry George was writing on how monopolistic land ownership could cause poverty, little did he know that his daughter (Elizabeth Magie) would go on to design the game of Monopoly in the 1800s as a way of illustrating how monopolistic land ownership could cause social pain.

 

Having a well-functioning housing market is not only important for the economy, it also has wider socio-political benefits. This is why economists and policymakers convulse when any housing issue is turning into a crisis.

 

Currently, the UK property market is characterised by soaring property prices, limited housebuilding and a growing population. The average property price in London is £500,000; in the UK, the average property price is £300,000, an increase of 7% year-on-year. The average salary in London is £30,338 but the salary needed to buy a terrace property is £142,000. The whole thing is causing affordability crisis.

 

UK Housing Crises Image 1

 

The historic failure to build more house, the increase in population, the influx of foreign buyers and economic policies pursued have all contributed to the housing crisis today.

 

The net effect of this crisis is this: first time buyers are finding it almost impossible to access the property ladder; this is causing generation rent, which goes against the principle of “property owning democracy” promised.

 

Bank of England: Since 2013, the role of the BOE has been to supervise the banks, control interest rates and ensure financial stability in the UK. In order to prevent the housing market from overheating, last summer the Financial Policy Committee (FPC) introduced regulations requiring banks not to give residential mortgage to borrowers which is more than 4.5 times their income. It also requires banks to “stress test” borrowers’ ability to repay the loans. The FPC is asking for more powers to control the buy-to-let market. The “powers of direction” would allow the FPC to make regulations on, inter alia, debt-to-income and loan-to-value ratios.

 

Government Policy: As an attempt to solve the housing crisis, the government has introduced a number of rules and policies:

 

From the supply side, the government has promised to build 400,000 of which 200,000 would be starter homes, which can be purchased by FTB at 20% discount. The discount would only apply if the property price is below £250,000 outside London or £450,000 if the property is in London.

 

UK Housing Crises Image 2

 

From the demand side, the government try to differentiate between FTB and buy-to-let (BTL) investors. To encourage FTB to access the property ladder, the government introduced Help to Buy Scheme. Under this Scheme, FTB can get interest-free loan of up to 40% of the property value provided he has 5% deposit.

 

Help-to-Buy ISA was also introduced to further assist FTB. It gives FTB savers £50 bonus for every £200 saved up to £12,000.

The government believes that BTL investors have contributed to the housing crisis. As a result, a number of changes have been introduced to control the exuberance of the BTL investors: Firstly, in the summer budget, the Chancellor announced that a restriction would be placed on the amount a landlord could claim on the mortgage interest. This was followed by the autumn statement when the Chancellor announced that anyone buying a second home would pay a higher rate of stamp duty.

 

UK Housing Crises Image 3

 

A new All-Party Parliamentary Group for housing and planning has been set up to examine ways of tackling the housing crisis. The Group has to find a solution. But are the government policies the right solution for the housing crisis?

 

Solution: Simply building 400,000 houses alone may not solve the problem in the long run. Increasing the numbers of FTB accessing the property ladder would eventually “consume” the 400,000 houses built. In the end, we will be back to square one!

 

The key panacea is to decentralise commercial and political activities. Most activities are centred around London. The government speak about the Northern Powerhouse. Thus far, nothing has been done to show that this is not just rhetoric. Decentralisation would spread people around the UK and relieve the housing pressure in London and the South East.

 

Secondly, stamp duty should be set locally to take account of regional differences in economic power.

 

Thirdly, incentive should be given to BTL investors who invest away from London and the South East.

 

Lastly, limit should be placed on the number of properties a BTL invest can own in London and the South East.

 

Having said all these, it is difficult to know whether the policymakers will consider the above salient points. As they say: you can take the horse to an African river, but you cannot force it to drink….

 

Godwin Okri – author of the book Investing in Property with Strategy £6.99 Amazon

Property Investment Algorithm – For the first time, scientific formula has been created, turned into an algorithm and applied to property investment.

 

This new formula, written in the annals of cutting edge property investment, is heralding a new way to invest in property in spite of soaring property prices.

 

Property Investment Algorithm

 

This new formula, called the “Property Quantum Formula” (PQF) shows that there is a logical mathematical way of working out the best strategy to utilise when invest in property.

 

Property Investment Algorithm 2

 

The PQF reveals a quantum technique, a winning formula for wealth creation. The way the PQF works is set out very simply in the book “Investing in Property with Strategy”.

 

The PQF has an algebraic formula: E=MXV

To find out more go to – Investing in Property with Strategy

 

 

 

 

© 2015 Godwin Okri LL.B Barrister

I gave a little talk at the British Council regarding my favorite subject – Investing in property with Strategy – on similar lines to the video below – which is a seminar that took place in 2014 – watch, learn and enjoy.

Book Signing at the British Council

This was a good day as there was a sizable take up of the books Investing in Property with Strategy

Most of which I got to personally sign for the proud owners.

Menvo Limited at the British Council

 

12107812_10153260772636475_1492905141345148066_n

Winning Strategies That Will Sell Your Home

You must do your research if you sell real estate. There is tons of information out there. There are very few people, however, who can devote enormous amounts of time to sorting through the information. Just by reading this article, you’ll find some of the best tips available to help you sell your property with ease!

For most people, price is everything. To attract buyers, think of a price which all involved can find reasonable.

Add some energy efficient things to your home as soon as you realize you are going to list it for sale. If you buy energy-saving items like a power meter, motion detecting lights, Energy Star-certified items, and LED bulbs, you might be able to lure in buyers with the promise of significant energy savings over time.

Making small changes to your kitchen could make your home more attractive and valuable. For instance, update your appliances or change the design. Other common kitchen upgrades include: installing a large wood block island in the center of the room, and adding hanging storage. It will be quite costly to change out the cabinetry, so you should consider giving your existing cabinets a fresh coat of paint.

Have your furnace and central air conditioning units inspected and serviced before you put your home on the market. Buyers will avoid a house that needs immediate and costly maintenance, such as buying a new furnace.

Clean both sides of your windows as you prepare the house for sale. The clear and sparkling sunlight coming in will make the interior seem newer. While the buyers won’t know how much effort you put in, they will definitely appreciate the result.

If possible, you should sell your house prior to the date you must move by. Few things are as difficult as trying to make two house payments as you wait for your previous home to sell. Make sure you have ample time up show the house and locate the perfect buyer.

You will probably have to negotiate with your buyer. If you need to sell your property in a short time period, remain flexible about your price and terms. If you’re not quickly trying to sell your house, hold off for an offer you are comfortable with.

Use different strategies to market your property. Look on the internet, in newspapers, or go see an agent to find tools to help you reach out to the buyers in your area to sell a property you own. To be effective, you need to keep all your options open to reach the widest audience you can.

If you’re aiming to sell a property as quickly as you can, you should keep the home’s price 10% lower than the least expensive comparable property in the neighborhood. Buyers will find the price attractive, and will want to see the house right away.

To encourage buyers to see a home as theirs, it is a good idea to remove your personal touches from public display. It is as simple as putting away family pictures and other such personal items during the home’s viewing. Potential buyers need room to imagine their family living in the home. You will also want to take clutter out of your house because you want to create the illusion of having plenty of space.

Get rid of clutter before you show your home. Remove as many items from your closets as possible and organize the rest. Dust inside the closet so that buyers don’t risk allergic reactions when they open closet doors. Ideally, you should also empty your kitchen cabinets and drawers, though you might want to add a few neutral, decorative touches.

Make sure your counter tops and appliances are clean. Sweep, mop, or vacuum all the floors, and make sure that your bathroom is spotless. Have your children put their toys away. Make sure you pick up your dirty clothes. You want your home to look as clean as possible when you sell, which spotlights the best aspects of your home.

It is important to be patient with your real estate agent. You may not like everything the real estate agent has to say regarding improving your home for sale; however, this advice is in your best interest. While you might disagree with some of the things they tell you, listening to their advice will usually help you secure a buyer faster.

Work with potential buyers when you get offers on the home. While you may feel it’s worth a specific price, you won’t always get that amount exactly. Have a discussion with your agent about a fair price for your home.

Hopefully, you have found this to be a great help! Be sure to use the information that closely fits your circumstances. Real estate can be very profitable. Take the time to learn everything you can so that you can start making money in this lucrative field.

Tips For Your Next Real Estate Purchase

The many aspects of buying a home, from the initial search to securing the mortgage, can all drive a normal person virtually insane. Learning the different tips and tricks for a successful experience in home buying is essential.

Get a partner that you trust when you want to make the step and buy an expensive commercial lot. Qualifying for a large loan is more difficult for a single purchaser than a partnership. This partner can also help out with the needed down payment and even a higher credit score in order to qualify for the loan.

If a seller doesn’t accept your offer on the home, don’t be surprised if they still manage to make the home affordable for you. They might offer to make certain repairs to the house, or even pay your closing costs.

Ask your Realtor for a checklist. Checklists cover each step of purchasing your home. They help you through the process of finding the home, making sure you can afford it and securing a mortgage. Such a checklist enables you to dot all i’s and cross all your t’s.

Once you have real estate, you can increase your investment by simply completing some repairs or remodeling projects. The good thing is that you will get a good profit from your investment when you repair a fixer. In fact, the value of the home may even go up more then you actually invested in it.

It is critical to thoroughly understand the terms of a mortgage loan when you purchase a home. A failure to understand how your monthly payments are structured, especially interest over the life of the loan, may place your home in jeopardy. So take all the time necessary to understand a mortgage and avoid any confusion.

Before purchasing a home in an unfamiliar neighborhood, check out that neighborhood using your state’s sex offender database. Although sex offender registries are available to the public, real estate agents are under no obligation to disclose information to potential buyers about registered sex offenders in the neighborhood. Google up the registry yourself!

If the home you are buying has been foreclosed on, it’s probably best to assume that it might need some repairs. Reason being is that most foreclosed homes have been sitting around for a while without anybody living in it, and that means there has been no upkeep at all. Have a qualified home inspector do a thorough examination of the house before you purchase it. It may need a new HVAC system, and could also have a pest infestation.

Don’t start looking for a home before you’re pre qualified. It is very discouraging to find the perfect home only to find you can’t get a loan for it. Also, getting a loan can be a long process that you do not want to wait until last minute to begin.

If you are looking to purchase some of or all of a building in order to open a business, make sure it is in a good neighborhood. By placing yourself in an unattractive location, you dissuade potential customers. Find the best location for your business by talking to a real estate company.

Always do some research about the neighborhood before buying property. The neighborhood is as important as the home itself, so make sure it fits your lifestyle. It’s essential to research the neighborhood, so you truly understand what you are buying into.

Always obtain home warranty protection. When purchasing a new home, either from the builder, or an older home from the previous owner, ask for a warranty. A builder should be proud to stand by his work for a time. Previous owners should have no issues getting the home warranty for around a year to assist you with offsetting impending repairs.

Even if the home is just for you, don’t go it alone. It is always helpful to have an experienced person at hand. Another set of eyes will help you to spot things that may be a problem in the future. Advise them to make a list of questions for the realtor.

Just use these ideas as starters to find out more about what you need in order to buy a home. You should use these tips to avoid mistakes that can happen to people buying a home. Good luck with your search, and enjoy finding your new house!

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