City Properties Journal

Now that the mortgage rate has been cut, consider investing in real estate. There is a lot of money in the real estate market, but first you must know what properties make good investments. Many people agree that single family homes are good investments because they are easiest to buy. These homes can be found all over the country. Also, there are many foreclosures which can really do you well in the long run. When you find a foreclosure you will be able to purchase it for well below market value. In turn, your return on investment will come about sooner rather than later. Single family homes come at different price points and in a number of different forms. You can find lower cost homes or expensive ones. The choice is yours based on your available money, and what you are trying to accomplish with your real estate investment.

Look at vacation, time-share, real estate and commercial properties. Try www.usa-property-auctions.com/residential_homes.htm

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When searching for a home, you should not buy the most expensive in the block, but instead buy “beater” homes. For example, in homes costing $300,000, you can probably get a cosmetically unattractive home for low price of $230,000. Then with a little improvement like landscaping for $1,000, painting for $5,000, and fixing cracks for $10,000, you already have a $300,000 home value, which you have only paid for $246,000 including improvements.

Words of caution though, buy the house only if the problems are cosmetic. If the home has foundation problems or termite problems, it is not worth it to repair those because it will cost a lot of money.

As evident in the growing website foreclosure.com, the sheer number of properties that have suffered foreclosures have grown and are still on the rise due to the economic crisis we are all being subjected to. Though many are really good finds, the many scam around makes it a bit risky and many other factors that may be affecting the industry and your selected property belies their outside beauty. (more…)

This is the next big thing that the housing market is going to get into, well, after the housing market rebounds that is. The slump is still here and no end is in sight so don’t count on it in the near future. The slump doesn’t mean houses are not being sold, its just that they are not meeting industry set levels for them to matter. Green is the next catch-phrase for the industry as we try to mend our ways to less environment impacting technologies, building materials and techniques. You might be surprised to see homes built in the fashion of the early settlers, using straw and either earth or concrete. It works better than concrete and wood and lasts longer. Time would tell when the housing market rebounds and home buyers would have to keep hunkered down so they get to weather the storm, just wish most can afford new homes when the crisis ends so the dream of a green society becomes reality.

Image source:www.ronsaari.com
The American Dream Down Payment Act authorizes $200 million in grant aid for each of the coming four years to low-income, first-time home buyers. It certainly is a dream come true for many people who have harbored the fantasy of buying a home but were not able to get the cash for it.It is a joint government and banking program to help people put together that initial down payment which is crucial in buying a home. Such ventures also uplift the economy of the country, when loans are more accessible to people and first time home buyers.

Interest rates are hitting an all-time low, and assistance professionals are urging you to come forward and avail of this opportunity. Not only do these grants help in that down payment, but also are tremendously useful when closing the mortgage. The sooner you pay it off, the better. Even bad credit doesn’t go against you if you are a first-time home buyer, in the sense that you haven?t had housing ownership in your name within the last three years.

The CityLiving Home Program is a project jointly sponsored by the cities of Saint Paul and Minneapolis, Minnesota. It gives homebuyers a chance to buy, build or renovate a property with a below-market-rate mortgage loan. It is limited to first-time homebuyers whose income and property price are below the set limits, except if the house is within the target area specified by the city. Limits may be increased if the home to be purchased is in the target area, the household is is at least five persons, the loan includes improvement costs, or the property is currently vacant. Interest rates vary, depending on the Down Payment Assistance Grant, which can be up to 4% of the mortgage amount.

EcoBrokers are licensed real estate agents who are up-to-speed with the green real estate market. They are familiar with energy-efficient and environmentally sound building because of the ARELLO-certified training program they undergo. They differentiate themselves with their designation, which means that they are knowledgeable about Energy Star homes, sustainable design, and air quality issues, topics that are discussed during training. To find your local EcoBroker, properties and more information about green real estate, visit ecobroker. com. The website also gives information on Affiliates, suppliers of green products and services. EcoBroker is an Educational Partner of the Built Green voluntary program.

There are many different types of investment real estate: rental houses, apartments, vacant land, commercial buildings, industrial, shopping centers or warehouses.

They all offer big tax incentives for investors who understand those benefits.

Many people believe that depreciation is the best real estate tax deduction of all. The IRS REQUIRES real estate investors to depreciate their investment properties.

Depreciation is a “paper loss” required for estimated wear, tear and obsolescence.
However, land value is not depreciable. This applies to 100% of the money invested in buying vacant land and that part of the property value apportioned to land on an improved property. (That is, land with a building on it).

Condominiums do not have a land element and 100% of the purchase price can be depreciated.

Residential income property is depreciated over 27.5 years on a straight-line basis.

Commercial property is depreciated over 39 years, also on a straight-line basis.

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Flipping real estate? Beware the following.

1. When you keep property for a few years, you may experience a surge in property tax if your taxes are reevaluated during that time.

2. Renovation Expenses.
If you bought a fixer upper at a bargain, will you recover the expenses and make a profit? Can you withstand a correction in real estate values?

3. Insurance and Mortgage Costs.
You will have higher payments if you don’t occupy your residence and you have tenants.

4. Rental Pressures. A market saturated with rentals means that rents you charge will be less than what you hoped to receive. Will the lower income levels and added expenses drag your investment down?

By finding a dependable tenant, appealing excessive property tax increases and doing the upgrades yourself, you could limit risks. With determination, you could gain profits.

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In spite of the many precautionary steps taken before purchasing a house, there are still more things to check even when paying and handling the documents. Remember, this would become your permanent home. Even your bloodline would someday inherit the land you bought. A wise buyer would take all the time in the world to make sure that there would be no future glitches when he or she starts living his or her life.

Don’t get tired of checking again. This is very important. It is like preparing yourself before going on a summer getaway. You must make sure you have brought your sun blocks and umbrellas before diving into a deal. This determines whether you’ll float or drown.