 What should my parents do? |
| ok here is the story my parents sold our house and we built a new one, brand new and they needed money from my aunt to finish it. now we got the money from her and now we have to pay her back, but my ... |
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 My landlord won't return mine or my future landlords calls to verify my stay. What can i do legally? |
| I want to move into another apartment complex. I HAVE FULFILLED MY 1 YR LEASE AT MY CURRENT RESIDENCE. THE NEW COMPLEX WABN'T TO VERIFY THAT I LIVE THERE AND HAVE PAID MY RENT AND FURFILLED MY ... |
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 I want to make an offer on a house I like thats been on the market for 8 months and no previous offers.? |
| Its listed for 306K now, as opposed to 334K 8 months ago. The woman has had no offers and wants to move. Since the market is a buyer's market, and she's had no offers, people tell me to ... |
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 What's better, foreclose, or file bankruptcy...? |
| credit is bad already for missing pymt. but as homes going through foreclosure, should i file bankruptcy, or should i just let foreclosure happen and not worry about it...? what are the pros/cons of ... |
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 Our landlord called us to go in and sign another lease cause they made a mistake on the rent do we have to? |
| We signed a lease at the beginning of the month and they have the rent at $75 less than what it should have been do we legally have to sign another lease that would make the rent go up?... |
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 Should you tell a landlord about a broken window that you fixed? |
| it was our fault we broke it but we replaced it a day after we did it. we are new to renting.... |
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 Are home prices ridiculous? |
| I don't understand why there are homes on the market that are ghetto shacks being sold for over $300,000. Does anyone else think that people are getting greedy over real estate and can you ... |
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 What are the consequences of lying on a bank application? |
Additional Details
lying about your residence status, saying that you are a us citizen but you're ... |
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 How do "normal" people with "normal" paying jobs ex: teachers, police, afford to buy a home in CA or the like? |
| I am single and a teacher in TX and I am stunned by the possiblity of how people can afford to buy a $300,000 to $600, 000+ home in CA, OR, AZ, or really anywhere, where the "below-average" ... |
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 Can we afford a million dollar home? |
| Okay, my cousin and I are going to shack up together. She is currently in college getting her BA in Med.( She wants to be an obgyn). And, I work regular labor at $12/hr.for 40 hrs a week. Our cars ... |
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 My house is up for sale, the Estate Agents have told me to drop it £13k? |
| My house has been for sale for 4 months, no offers, I have new valuations from new Estate Agents advising to drop it £13k to £125k. They say the property market on its way down? What do you think?<... |
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 What different types of mortgages are there? I dont want to be scammed? |
| I dont want to get scammed into taking a mortgage I dont need. Can a mortgage expert enlighten me on mortgages. i would also like to hear the laymans views as well. How many types are out there; Pros ... |
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 Can you turn your home into a business? |
my friend is looking for a premises to start an organisation, can she transform the ground floor of her house.
Additional Details
she wanted to set up a help organisation for domestic ... |
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 For mortgage purposes, will my second home be considered a primary residence, investment prop. or second home? |
| I'm currently renting out my primary residence. I moved, and am living in a rental in a different state. I'm sort of doing this backward. I want to maintain my original home as a rental, ... |
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 Will the UK Prooperty Market crash in 2007? |
www.housepricecrash.co.uk
www.globalhousepricecrash.... |
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 Need legal advice on an apartment.? |
| My fiance and I have lived in this apartment since November and there is a new tennant up stairs who is constantly loud and throwing parties all the time for days straight. When I first asked her to ... |
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sammyh3r3 | Any advice on buying houses to rent out? |
is this a good investment? |
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moneymaker
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Real estate is the safest and most profitable investment, buying to rent out is best near colleges and schools. |
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The High Flying Freedom Frie
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Don't do it the real estate market is bubble waiting to burst |
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cheer8ko
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yes, if you make sure that the neighborhood you buy in will be a good renting neighborhood ( as long as you don't do too much improvemnt and need to rent the house out for more, you should do well) |
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robert w
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Suggest your go to DaveRamsey.com read learn digest understand and act on the info.
Houses to rent are great investments - IF -you know what you are doing and have little debt and real reserve money saved away. Houses to rent -suck if you are just getting by . The first down turn , you'll lose your rental and possibly your own house. Read DaveRamsey.com to learn what he did wrong before you do the same. |
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Price is what you pay for value.
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How to value a property during market downturn?
Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.
Let's use following example:
Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.
If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.
In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.
It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.
Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.
It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.
One may ask, why is there a discrepancy between two perspectives of the buyer and owner?
The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514 |
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CMR2006
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Depends on: your finances, the area, market conditions, management, selection of your tenants,......
Lots of conditions and lots of choices. Make the right ones and it can be a very good investment. Make the wrong ones or take too many short cuts and it can be a financial nightmare. |
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joe_ballarino
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It can be... as with any investment, you have to make a wise purchase decision.. You make money in real estate the day you purchase!
What I mean by that is, you have to be smart about what property you buy. Make sure you compare recent sales and that you are buying the property at a good price.
Next, you have to determine what the going rate is for similar rental units. Then create a budget:
Potential Rent
minus:
Mortgage cost
Taxes
Insurance,
Etc...
And determine what the cash flow will be, negative or positive... Can you fund a negative cash flow? if not, select a different property...
What makes rental property a good investment is that the rent will cover the mortgage, so the tenant is paying down the principal and there are tax benefits as well...
Hope that helps...
regards,
Joe Ballarino
http://www.AmerivestRealty.com |
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PlatinumREI.com
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70% of my mortgage loans last year were to investors. Most of them got hurt, especially buying prooerties over 1/2 hour from where they lived. Further, property values are declining in many parts of the country. Those that are rising are probably driven by investors who think there is still a game to play in single family houses. For buy-and-hold strategy, I doubt it. |
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Matt J
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There is a good article on investment property on this web site.
http://www.minnesota-mortgage-rates.net/minnesota-home-mortgage/index.htm |
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Anna
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yes. Where do you want to buy ? I have some for sale. I am an investor and a mortge broker. I am good at what I do.. tell you more later.. |
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US P
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i am a full time real estate investor and i am very sucessfull at what i do. i wouldn't do a buy and hold property - the best way to make your money in real estate is to buy cheap sell high - example 100k house buy it for no more than 65k sell it to someone that has bad credit with some money down (atleast 3-5k) make them go to a credit repair clinic and get signed up to repair their credit, then owner finance the property for them via contract for deed, after their credit is repaired they can then qualify for a mortgage and if they don't then just sell your contract for deed for 85-92% of face value - total profits - 100k contract for deed and you get 92% which equals 92k minus your 65k you have in it = 27k profit plus their 3-5k down .
do this a couple of times a year and you don't have to work a regular job. you can be your own boss. |
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