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What?s it Like to Live in a Duplex?

July 8, 2011 by Leave a Comment

 

One of the lesser known gems of real estate is the duplex. Most people have lived in a house or an apartment but by comparison, fewer people have lived in a duplex. There are many advantages to living in a duplex. There are financial rewards as well as spacial benefits to owning a duplex.

 

duplex

Image by reallyboring via Flickr

As a business opportunity, it’s a more affordable way to live when you have someone else paying half the mortgage. Purchasing a duplex and renting out just the bottom floor is an ideal way to get half your mortgage paid. A duplexis often spacious and one floor is all that is necessary if you have a small family.

 

If you are renting a duplex, you will likely have just one set of neighbors to contend with instead of various families. Renting a duplex is also good practice for home ownership as you are often expected to mow your own lawn and remove snow from your driveway in the winter time. This could also be a drawback of renting a duplex if you like apartment living where these small inconveniences are all taken care of for you.

A duplex is most likely to come with a useable back yard and shed space to store a lawnmower, extra kid’s toys, and shovels. Depending on your landlord’s rules, you can also hang a laundry line to save on the electricity it costs to run a dryer. You may also be granted permission to plant and run your own garden if renting. Owning a duplex would make sure the best of all worlds in regards to home ownership and mortgage savings.

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Home Decor Tips: Choosing a Theme

June 1, 2011 by Leave a Comment

Deciding on a theme for a room in your home can be a daunting task. Sometimes you have absolutely no idea where to start. If you’re new to decorating your home, here are four simple tips to help you select themes for your rooms.

Red sofa.jpg

Photo courtesy of Wikimedia Commons

1. Take a look at the furniture you already have for the room you want to decorate. If you already have something you like, it’s easy to base your theme around that item of furniture. If you have a black dresser in your bedroom, you could use it to develop an Oriental theme. A lemon yellow beanbag chair could be the basis for modern décor in your living room.

2. Spend some time browsing a furniture store. Use canada 411 to help you locate one. These stores have many different types of displays for different themes in a home. Take your time to look at the colors, furniture, and accents that are used. These presentations are put together by professional interior decorators. If you use the ideas you see, you won’t go wrong.

3. Spend time at a grocery store. Look at the magazines, especially the ones about interior decorating. If you see ideas you like, purchase the magazine. Then, tear out the pictures and collect them in a file so you can refer to the pictures when you start painting your home and buying things to go in the room you’re decorating.

4. Think about your favorite color. It could be used as a theme. Earth tones are good for a Southwestern theme, and white or pale blue is good for a Victorian theme.

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Home Improvement Tax Credit for 2011?

April 17, 2011 by Leave a Comment

Replace your windows? Add insulation to your home? Purchase an energy star appliance? There are many ways to take advantage of tax breaks for the 2011 tax year. You can also use this helpful information for planning for the future.

Image via Wikipedia

If you repaired your windows this past year and now you can’t feel the breeze blowing in, great! But did you know this would not give you the tax credit? According to the tax laws, improvement means something that is over and above the normal working condition. The above would be a repair, not an improvement. If you replaced those windows, then you could take advantage of some of those costs on your taxes. The actual amount deductible seems to be decreasing, though, so the sooner the better on taking advantage of energy efficient tax credits. There are many more improvements you can make as well. One way to find out about these is by looking online for a tax blog which discusses many of these issues.

Here are just some ideas to make your home more energy efficient that could also increase the value of your home. Save energy by using solar energy. You can heat your house, your water, and in some cases you can even cool your home with solar energy. Adding insulation to the attic or walls of your home helps to hold in the heat and air conditioning. Improving the exterior covering of your home may also help to save energy and a portion of the costs will most likely be tax deductible.

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Risk Factors Associated with Investing in Real Estate

April 15, 2011 by Leave a Comment
Real Estate = Big Money

Image by thinkpanama via Flickr

Buying a house generally means that you are going to inhabit in it. However, with the rising prices of real estate in almost all major towns, buying a residential property has become a very good option for a safe investment as well. A major reason for this price rise is constantly growing population and thus, a consistent increase in the demand for places to stay, while the available area of land is not really increasing. To many of the investors who are lured by the anticipated hike in the land prices, it might appear like one of the safest ways to earn handsome profits on their investments. However, reality is that rising prices of land do not guarantee a risk-free investment. Therefore, you always need to consider the following factors while considering an investment in the real estate:

Recession: In recent past, many properties in various countries witnessed a decline in the real estate prices. Whereas you can’t always predict the future of the national economy, you also can’t afford to ignore this factor.

Poor location: If the quality of life deteriorates at the location where your property is, the prices are also likely to fall down. For instance, if the criminal activities in that area increase due to any reasons, possibilities of having people come there to live will also decrease, impacting the real estate prices negatively.

Surroundings: Having some good utility places, such as markets, shops, malls, gardens etc. in your property’s surroundings generally increases its value. However, having noisy roads, rail tracks, fire stations etc. in your surroundings can negatively impact your property’s resale value.

Filed Under: Apartments, Financial, Real Estate Tagged With: , ,

Why You Should Consider Bankruptcy

April 14, 2011 by Leave a Comment

When tough economic times hit, it can be hard to keep up with all of your bills. You still have your mortgage payment, car payment, food budget, daily living expenses, and the kids to feed. At some point in time, especially if you’ve recently lost your job or had a pay cut because of the recession, you may find yourself facing a foreclosure situation. The fact of the matter is, foreclosure happens to the very best of people. It’s not something to be ashamed or embarrassed of. Fortunately, if you are facing foreclosure there is some help.

If you want to save your house, you may want to consider Chapter 13 bankruptcy. This is different than Chapter 11 in many ways, and some of the key differences are:

  • When you file Chapter 13, you still pay your creditors for up to five years. This gives you a chance to catch up on what you may be behind on.
  • You can keep your house and other belongings by working with a trustee who will help pay your creditors.
  • You pay a trustee a small portion in order to make sure your debts are taken care of.

This type of bankruptcy can be a great option for many people who are a facing foreclosure. By contacting a bankruptcy lawyer, you can figure out your options with a flexible and creative bankruptcy plan. There’s no shame in asking for some help, so if you’ve found yourself down on your luck, consider Chapter 13.

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Garage Advice: Sales and Profits

April 6, 2011 by Leave a Comment

Many believe a garage sale is a guarantee of profits. Items can be traded; dollars can be earned; and clutter can be removed. It’s an instant advantage and an instant relief.

And this is true as long as you follow the rules:

Notice Necessity

No sale can succeed if potential buyers aren’t aware of it. Be certain to post flyers throughout the community. Choose local gathering spots such as favored restaurants, parks, and coffee shops.

Scheduling Needs

Timing is everything. Be certain to plan for a weekend event, when more individuals are available to shop. Make sure to offer notice of the sale (at least) two weeks in advance as well. Don’t simply announce it the day before because crowds will then be minimal.

Diverse Selection

Variety is essential for a sale. With only common products and tedious wares, profits will fail. It’s vital to provide a wide selection. Offer everything you don’t use, and allow your friends and family to provide items. This will create a diverse event and ensure interest.

Polish Required

Too often are garage sales assumed to be failures — simply because individuals don’t brighten up their goods. Use polish to make pieces shine and replace any broken elements.

Negotiations Expected

Creating a visually pleasing event (with items catalogued properly, and all prices shown) is certain to attract attention. That attention can quickly turn tragic, however, if buyers try to gain better savings and you refuse. Be prepared to haggle, and lower costs for items if possible. This will encourage individuals to spend more, believing they can earn multiple deductions.

Use these tips to have a successful sale and gain profits.

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There is Life After Foreclosure

January 13, 2011 by Leave a Comment
Foreclosure signs, Mortgage crisis,
Image via Wikipedia

If you are facing foreclosure on your home, you might feel as if it is the end of the world. When a company or bank comes around and tries to take it away from you, it can almost feel as if the world is crumbling around you. However, there is good news. There is life after foreclosure, and with just a few easy steps you will be able to leave that foreclosure in the dust and move on.

The first way to move on from a foreclosure is to seek professional help with all the legal issues. There are dozens of foreclosure experts that will help guide you through the process. They will explain what is happening, what steps you need to take and even help try to get you back on your feet financially after a foreclosure. If you are uncomfortable with heading to a person in real life, there are great foreclosure resources online such as foreclosure-bankruptcy.info that can give the same support and information that a foreclosure expert would.

A second way to move on from a foreclosure is to find a second place to stay. Many people who are in a foreclosure situation are not as worried about what will happen to their existing house. Instead they are worried about where they will live and what they will do for shelter. By finding a second place to live, such as an apartment complex or with a family member, you will be able to ease a common worry that those facing foreclosure have and be able to move past the foreclosure.

The key to moving on from a foreclosure is to remember that it is not the end of the world and to not allow it to consume you. By seeking professional advice of experts, you will ease some of your fears you will be able to start to move on from your foreclosure.

Filed Under: Financial, Home, Real Estate

Three Reasons to Rent Instead of Buy

December 25, 2010 by Leave a Comment

As the economy makes a sluggish recovery, and it becomes harder to get a good mortgage interest rate, it may be better to rent instead of buy a home for some people. Here are three reasons that renting could the best option for you. Don’t think of it as a permanent option, but it might be the right option right now.

Do You Know Your Credit Rating?

One of the biggest factors when buying a home is your credit rating. Do you know yours? If not, the law allows you to receive one free credit report a year. Find out what your credit history looks like! You may find it isn’t good enough to get you a good interest rate on a mortgage. In that case, renting is the better option for you. Then work to improve your credit score. Make sure you find a rental that is well within your budget. The cost of housing is usually our biggest expense, so you’ll have more money to pay your other bills if you don’t rent outside of your financial means.

The Cost of Maintenance

If you rent, your property owner or manager is responsible for the maintenance of your home. If you buy a home, then you’re responsible for upkeep! That means that you pay for plumbing repairs, broken windows, painting, new flooring, etc. Talk about expensive! And guess what! You’re responsible for paying the property taxes on a home you own. Can your budget handle a mortgage, maintenance and property taxes? If you’re carrying a mortgage, you also have to pay home owner’s insurance. See how home ownership gets really pricey?

Mobile Lifestyle

Finally, it makes sense to rent if you have a mobile lifestyle. If your job or dreams mean lots of moving, then rent your home. Buy when you finally settle down. Just live within your means until you’re ready to find that dream house.

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How to Get a Home Loan

December 7, 2010 by Leave a Comment

After the massive tumble in the banking system in recent years, banks have become much more picky with home loans. There are a few unavoidable factors that a loan officer is going to look at before agreeing to loan anyone money. So be prepared when you head to the bank and ask for a home loan.

How Much Can You Really Afford?

This was probably the dumbest thing banks did in the last ten years. They ignored that question and went wild with sub prime loans. That means they were loaning money to people who simply couldn’t afford a mortgage, at an interest rate that was below the prime rate. What many of these new home owners and their bankers didn’t think about was that big fat balloon payment that was blowing up down the road. Now, a banker will only make a home loan for one third of your monthly income.

Down Payment

Expect to produce a 20% down payment when purchasing a new home. If that new dream house costs $150,000, then you’ll need a $30,000 down payment. Needless to say, you’ll need some serious equity in your existing home, or you better start saving.

A Good Credit Score

Banks are looking for credit scores above 680, and some smaller banks may balk at that. Don’t run up high debt and then expect to buy a home. Banks pay attention to all of those shopping sprees on your VISA. Credit scores are also figured on debt to income ratio, so even though you’re paying the bill, what kind of wiggle room do you have?

Maybe Not a Fixer Upper

Banks are looking at the condition of the home and the quality of the location more these days, so a good buy might not be a good loan. The dirty on this is that the bank needs to unload that property if you default.

Home loans aren’t so easy anymore, so be prepared.

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Property Taxes are Important to Consider When Buying a New Home

December 5, 2010 by Leave a Comment

It’s so exciting to finally be able to purchase or build that dream home, but property taxes are very important to consider before you purchase. Many first time buyers don’t realize that there is a very important payment that has to be made every year, and that is property taxes. All states have some form of property tax, so this is an unavoidable expense.

There are certain parts of the country that just seem like the best places to live. Cities like Austin, Texas always list as one of the best. However, one could move an hour east of the that city and pay a tenth of the property taxes! In some cases, those city taxes may feel like a second mortgage. Keeping Austin as an example, some single family lots in the central part of the city may have taxes as high at $9,000 a year! That’s like paying a second mortgage!

Even though convenience may be inhibited, it may be worth the drive to find a community near a city like Austin to live in. The upside is that same house in a smaller outlier city could have greatly reduced taxes. The downsize is the commute to work, if jobs are in the city. The other downside is that once a great outer community is found, lots of people will start to migrate there, and that means traffic congestion.

Maybe that great city with high taxes is simply the only option for you. In that case, the location within the city has to be considered. You might find a similar size house, with similar qualities in a neighborhood where property taxes are less. Just know that less won’t be the same as small, surrounding towns.

Sometimes taxes are the reason people continue to rent. Although everyone wants to own a home, property taxes are a very real and very important responsibility. Definitely get educated before buying.

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