Monthly Archives: June 2016

Tips for Real Estate

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As in many aspects of life, the key to real estate investing can be location, location, location. While real estate is perhaps more complicated than hoping for foot traffic at a restaurant with a prime location, location does certainly play a part in the possible viability of a rental property. There are a few things you can look for in the area of your possible real estate investment that can tell you some important things about the possible long-term health of your potential investment.

Check For Growth
Is the area you’re looking at experiencing strong population and job growth? These are two important economic indicators that can help you decide whether a particular area is ripe for real estate investment opportunities. Local government web sites and federal reports are readily available with population and job growth information.

While the benefits of an increased local population are obvious, job growth that exceeds that population growth level can indicate a prospering community with money to spend. Areas that prosper are potential candidates for increased rent payments over time, one sure way to put you on the road to profitability with your real estate investment.

With job growth comes quality of life and as qualify of life improves in the area of your investment, so too grows the level of rent you can charge. It is a tried and true fact that people will pay more to live in an area they enjoy, so the prospect of an area growing more and more attractive will directly influence the financial state of your potential real estate investment.

The Real Estate Market
What is the construction atmosphere of the area like? Areas that are seeing a boom in new home construction often experience those booms because of favorable job growth, income growth and other factors. However, for an area where building permits are outpacing new population, that could be an early indicator of an over supply of real estate that could lead to depressed prices for rent payments.

The best case scenario is an area where few homes are for sale, pumping up demand, and where new home construction is strong but not out of control. That can be a fine line, but because any investment takes a great amount of homework and research, it is something that should be investigated over the course of your decision-making process on a new investment.

The Land Crunch
Just as a low supply of homes on the market can produce an upwards trend for housing prices and, subsequently, the level of rent you can charge, so too can a low level of land available to build on. In an area where population is growing and jobs are strong, all of these new people have to go somewhere.

Whenever more people want to move into an area than there are homes for those people to live in, you will see an upward slope for home prices and viable rent payments. If there is little land left to build on, those buildings that are already built will be able to charge more for their rent payments, putting your investment further towards profitability and the long-term benefit of owning property in an attractive part of town.

All of this initial information will not guarantee a profit on a rental property, but these are crucial steps to take when evaluating whether you want to put your hard-earned money into a real estate property that is sure to experience the ups and downs of the local economy. Especially for properties outside of your own home area, knowing the state of both the growth of the population and the home construction industry will help you more accurately predict the future viability of your investment.

The Right Title Insurance

Title insurance has become an accepted part of most real estate transactions, giving lenders some security in regards to claims against a particular property that they may be insuring. Title insurance companies offer that security and your realtor may have a favorite entity that she or he tries to steer you towards during your real estate transaction.

However, as with most aspects of the real estate process, you have a choice in title companies and it would certainly behoove you to look into all of the possible options. Of course, there is certainly value in going with a title insurance company that your realtor has a familiarity with, but simple familiarity does not always make for the best business decision. Here are some things to think about when going through the process of selecting a title insurer.

This Does Not Apply To You
On a personal level as the owner of a property, title insurance does nothing to protect you. Title insurance protects your lender from claims against a property, but not the owner. For that kind of protection, a separate type of insurance called an owner’s policy can be taken out to protect you from similar claims. If claims do arise, they are not usually small, so owner’s policies can certainly come in handy.

The Grass Is Always A Different Color
While the grass may not always be greener when you investigate a number of title insurance companies, it is certainly a different color. Each title insurance company has their own unique ways of covering certain things, omitting certain things and generally constructing a policy unique to that organization. Shop around for your needs and get full disclosures from each company of what is and what is not covered.

If you are a new home buyer, sometimes builders can make claims against the title of a home. Find out if that kind of activity is covered under the policies you investigate. Your situation is unique and will always have special circumstances that may not universally apply to all title insurance offers. Consult your realtor and read through the coverage declarations of the companies you consider to ensure that you are covered as you need to be.

Read The Report
During the course of the title insurance process, the title insurance company you eventually choose for your real estate transaction will send a report to the lending company on your deal with any points of interest or dispute concerning the property’s title. This can be an interesting read and you may be able to point out mistakes or issues with it as well. Make sure that both your lender and title insurance company have an accurate view of your property, as it will greatly affect you should a claim come against the property’s title standing.

Title insurance can sometimes seem like an arduous part of the real estate process, but making sure that you are properly covered in any business transaction is simply a smart thing to do. Those that have had title claims come against their properties will tell you that process is not enjoyable and the right kind of title insurance can greatly reduce your exposure to that event. As always, you are paying your realtor for a reason and one of them is expert advice on the twists and turns of your real estate transaction.

Title insurance is one of those twists and turns, so be sure to use your realtor as a resource when going through the process. Ultimately, the control you exercise over the title insurance process will depend on how involved you want to be in your real estate transaction. There is always value in taking charge of your own significant investment in a piece of real estate, so don’t be shy.

First Home Buyer Tips

As in many aspects of life, the key to real estate investing can be location, location, location. While real estate is perhaps more complicated than hoping for foot traffic at a restaurant with a prime location, location does certainly play a part in the possible viability of a rental property. There are a few things you can look for in the area of your possible real estate investment that can tell you some important things about the possible long-term health of your potential investment.

Check For Growth
Is the area you’re looking at experiencing strong population and job growth? These are two important economic indicators that can help you decide whether a particular area is ripe for real estate investment opportunities. Local government web sites and federal reports are readily available with population and job growth information.

While the benefits of an increased local population are obvious, job growth that exceeds that population growth level can indicate a prospering community with money to spend. Areas that prosper are potential candidates for increased rent payments over time, one sure way to put you on the road to profitability with your real estate investment.

With job growth comes quality of life and as qualify of life improves in the area of your investment, so too grows the level of rent you can charge. It is a tried and true fact that people will pay more to live in an area they enjoy, so the prospect of an area growing more and more attractive will directly influence the financial state of your potential real estate investment.

The Real Estate Market
What is the construction atmosphere of the area like? Areas that are seeing a boom in new home construction often experience those booms because of favorable job growth, income growth and other factors. However, for an area where building permits are outpacing new population, that could be an early indicator of an over supply of real estate that could lead to depressed prices for rent payments.

The best case scenario is an area where few homes are for sale, pumping up demand, and where new home construction is strong but not out of control. That can be a fine line, but because any investment takes a great amount of homework and research, it is something that should be investigated over the course of your decision-making process on a new investment.

The Land Crunch
Just as a low supply of homes on the market can produce an upwards trend for housing prices and, subsequently, the level of rent you can charge, so too can a low level of land available to build on. In an area where population is growing and jobs are strong, all of these new people have to go somewhere.

Whenever more people want to move into an area than there are homes for those people to live in, you will see an upward slope for home prices and viable rent payments. If there is little land left to build on, those buildings that are already built will be able to charge more for their rent payments, putting your investment further towards profitability and the long-term benefit of owning property in an attractive part of town.

All of this initial information will not guarantee a profit on a rental property, but these are crucial steps to take when evaluating whether you want to put your hard-earned money into a real estate property that is sure to experience the ups and downs of the local economy. Especially for properties outside of your own home area, knowing the state of both the growth of the population and the home construction industry will help you more accurately predict the future viability of your investment.