Archive for October, 2009
Good Lessons For Home Buyers
Purchasing a home can be a bittersweet experience. On the one hand the excitement of owning a new house and on the other the dreaded reality that you have no money left in your bank account.
Typically we scrape together as much cash as possible and apply it to the down payment and closing costs. But is this the best strategy? Many lenders would prefer a buyer have a smaller down payment and a cash reserve for emergencies. Ideally buyers should try and build up an account that will cover three to six months worth of mortgage payments and living expenses.
In addition to regular expenses new home buyers on average spend an additional 4900 during the first year just making minor repairs and making the house their own. Buyers of resale houses spend about 3600. These numbers are based on statistics by the National Association of Home Builders.
None of these expenses are taken into account in the requirements by the Federal Housing Administration who only request that a buyer has a minimum 3.5 percent down payment. Although this extra cash buffer is not mandatory it will prevent many sleepless nights for the home owner.
In order to help out with the down payment or closing costs the government has introduced an 8000 tax credit. Qualifying home buyers can borrow the money and then file an amended return using the 8000 refund against their 2008 taxes and add to their savings account. The credit applies to those who have not owned a home in the last three years are buying between January 1 2009 and November 30 2009; and does not apply to married couples earning 150000 or more or singles earning 75000 or more. It also doesn’t apply to those in the Washington area obtaining loans that exceed the FHA’s limit of 729750.
Some buyers toy with the idea of cashing in their savings to pay off existing loans in order to boost their credit. Paul Corey a mortgage loan officer with Weichert Financial Services in Montgomery County warns against this idea.
“Sure it’s good to not have a debt any longer but if you’ve totally wiped out your savings what good are you doing in the long run if an emergency pops up?” he said.
It’s good practice to place your savings in a high interest bank account money market fund or shortterm bank certificates of deposit where you can access it quickly and without penalty if the need arises. Lenders will still consider up to 70 percent of the money invested in retirement accounts towards cash reserves.
Once you have built up that reserve account then applying any extra money to your deposit is definitely the way to go. Not only are you saving on interest payments but the cost of mortgage insurance drops dramatically. For instance 10 percent down on a 250000 mortgage results in an insurance payment of 129 per month. Increase that down payment to 15 percent and the payment reduces to 79. If you can apply 20 percent there is no requirement for mortgage insurance.
About the writer: View the many Washington D.C. homes for sale at LynnBulmer.com. Let Lynn be your guide to Dupont Circle real estate.
Fractional Ownership Management – Crucial For Fractional Success
For fractional ownership schemes to succeed they require skilled fractional ownership management. Otherwise the experience of ownership can be marred by muddled changeovers substandard facilities and arguments over use.
The Need for Fractional Ownership Management
If you own a leisure asset real estate boat car outright you are solely responsible for the maintenance and upkeep of the property you have only yourself to blame if it is not in a reasonable condition when you want to use it. Not so with fractional ownership! People will not and should not put up with fixing things caused by the fractional owner who used it last. There is a need for cleaning and maintenance to be arranged and for the rules in the fractional ownership contract to be enforced. The question is who should do this and what are the consequences of it not being done well?
OwnerManaged Fractional Schemes
This is the most costeffective method where either the fractional ownership management is delegated to one of the fraction owners or a committee formed from the fraction owners. Although costeffective there are many potential problems. The person responsible for managing things such as changeover arrangements and time allocation may have to mediate between different fraction owners. Where there is a serious disagreement this could be a very unpleasant experience. There is also the possibility of having to enforce unpopular rules such as stopping fraction owners from using the asset if they have consistently broken the rules or not paid maintenance fees. There is also the possibility of there being a conflict of interest if the dispute involves the persons who have been given the authority to manage the fractional ownership scheme. Overall although costeffective this is an option that has lots of potential difficulties that should be carefully considered. You would not want the burden of administration and mediation to prevent you enjoying using the asset!
Resort Fractional Ownership Management
In the instance of private residence clubs destination clubs or other forms of club ownership the management of the fractional asset will come as part of the overall package. In this case you will need to make sure that you have confidence in the ability of the organization and the management team to control both the regular maintenance required and any disputes that may arise. How old is the resort/club in question? Has it or its assets been well maintained to date? Try to speak to some of the existing members to get a feel for how happy the are with the way that the resort is managed.
ThirdParty Fractional Ownership Management Companies
If your fractional ownership scheme was put together by an agent/company for a single asset they may offer a management service of there own. The same points apply as to resort fractional management. Do your research and find out what their trackrecord is. Also importantly find out what the arrangements are for terminating the management contract if you are unhappy with the service.
Conclusion
Do not forget to check out the quality of the fractional ownership management that is going to be in control of your asset. The best contract in the world is devalued if its terms are not implemented properly by a competent management team.
About the writer:nbsp;nbsp;Neil Robertson has many years experience of shared/fractional ownership having been involved in such schemes for over 15 years. He owns and runs http://www.reachtogether.co.uk
Why not visit for more articles explaining both the good and the bad aspects of fractional ownership.
Finding Foreclosures In Orem Utah
Right now the market for foreclosures is hot. While real estate purchases in general are in a decline investors are finding great deals in the foreclosure market. Orem Utah has a vast amount of foreclosures listed in the local real estate market at prices well below the market values for the property.
What Kinds of Homes are in Foreclosure?
At one time the homes that went into foreclosure were not the nicest of homes. Because of that foreclosures have gotten a bad reputation. The changing market has helped to change the types of homes that are in foreclosure though.
Thanks to the declining real estate market Orem Utah has many foreclosure listings of homes in upscale areas. These homes have been foreclosed upon for a variety of reasons and you can find an affordable piece of property by browsing the listings.
Orem has long been known for offering great real estate. Property values and resale values are very high in the city so people who can find a great deal on a foreclosure property will immediately reap the benefits of the sale. As soon as the property is transferred into their hands they will have already made a profit.
Why Purchase a Foreclosure?
There are many reasons to purchase a foreclosure. Consider the following:
*Discounted price on real estate
*Find an investment property to make extra money
*Live in a home that you normally would not be able to afford
How to Find Foreclosure Property
If you are interested in finding foreclosure property in Orem there are many ways you can go about it. First you need to evaluate what you know about real estate in Orem Utah. Do you know how to find foreclosure properties on your own?
If you do know how to find these properties on your own you can try to negotiate deals with banks. However if you are not sure how to get a foreclosure property listing you may want to go through a realtor or a service in order to find the foreclosed homes in Orem.
A realtor will have a listing of recently foreclosed homes and the realtor can help you see the house. Then if you are interested you can make an offer on the home.
There are also services that give subscribers lists of foreclosed homes. When this is used consumers have to contact the home owners on their own.
If you are interested in Orem Utah real estate take advantage of the deals that are offered with foreclosure property. If you would like to pick up a foreclosure property the time is now. While there are a lot of foreclosures available at this time it will not last forever. When the economy turns around the opportunities to get foreclosure properties will lessen.
Educate yourself on foreclosure properties in Orem Utah so you can make a wise decision. You could end up with a secure investment or a new residence at a fraction of the cost. No matter what you choose to do with your foreclosure property it is a sound decision.
About the writer: Art Gib is a freelance writer for PayneSmootGroup.com http://www.paynesmootgroup.com a website featuring Orem Real Estate.