The following 6 point guide will help you decide which property investment is best for you.

3 Reasons Why New Property Provides the Best Returns

1. When you own an investment property you are able to claim depreciation of items such as dishwashers and washing machines. Carpeted floors and furniture all have relatively high rates of depreciation and when you own a new property you can claim higher rates on the depreciation of such. The amount of depreciation you can claim depends on the age of the property, so owning a new property will allow for better tax benefits from your investment.
2. Tenants will often prefer to move into a new property rather than an old one. If you are buying to rent then a modern property has a greater appeal. Particularly in coastal areas overlooking the sea, modern properties will fetch a greater rental rates from tenants, making newer better.
3. There are now builder regulations in place which mean they must supply insurance for any properties they build. This means that if anything happened to the house then you would be covered. It also offers the opportunity to claim back from the builders if you discover that they have failed to meet the specifications of the build. This will provide you with peace of mind at being covered if you discover problems with your property after purchase.

3 Reasons Why Old Holds the Gold

1. When buying an older property it is important to consider the value of land and building costs in the area. You will find it easier to get permission for a renovation than for a complete rebuild. Managing this sensibly will enable you to create an instant equity increase on the property. Make sure you do the calculations to ensure you are going to come out with a greater equity increase than the value of the investment.
2. Older buildings amongst other older properties have a certain appeal because of the atmosphere. It is difficult to replicate the feel of an older suburb when creating new property areas. The appeal of the surroundings will ensure a maintained demand in the area which cannot be guaranteed in a new development.
3. Older properties often have hidden attractions which you would not find in a newer property. Elements such as solid oak flooring hidden under carpet could really increase the appeal and value of the house. When looking to buy an older property, ask questions about the original features and you may be able to unearth some hidden wonders.

The Research Element

When looking to buy any property it is always necessary to do a lot of research. This is often more true with older properties, but knowing the area, the potential for expansion nearby and the accessibility of the property, will place you in better stead to discover the best buy in your chosen area. Be sure to utilise property valuation software to discover the true value of a home before making any offers.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

There will come a time however, where you are either presented with an opportunity or you are in a financially stable situation, and you ask yourself: is it the right time to buy a house?

Here are some questions you need to consider that will help you determine whether buying a house is a good option for you.

1. Do you want to buy a house to be your home?

The first thing to consider is whether you want to buy a house so it can become your own home, or if this will be a rental or investment property.

If you are purchasing it to live in, owning it means you will have the control and freedom to add your own touches, to redecorate – and to repair anything promptly without having to wait on your landlord or real estate agent (always one of the main downsides to renting!).

Buying your own home will mean if needed, you can find other flatmates who can pay you rent to help pay off the mortgage, and will provide a form of financial security for you and your family. Be sure to use Property valuation software so that you can determine whether the home you are buying now really will pay off in the future.

2. Do you want to buy a house as an investment?

Perhaps you don’t wish to live in this house yourself, but see it more as an opportunity to get into the property market. Owning real estate can be a lucrative and inspiring way to save and make money: provided you have the dedication to learn and the patience to wait for the right opportunities.

Thinking about who you want your potential tenants to be – students, travelers, families – will determine where you look and what type of house you search for. Real estate development software and courses will help you learn how to spot a great investment.

3. Do you plan to move any time soon?

Buying a house – whether it is for you to call home or for investment purposes – is a significant long-term commitment. If you cannot see yourself being close to the area in where you have bought the home, or if you will be unable to visit frequently, then perhaps it is not the right time in your life to buy.

You need to be able to keep an eye on your property, or have someone you can trust to do this job for you. If you take the proper precautions now, you will not be one of those many horror stories where owners return from years overseas, only to find their tenants have destroyed their property.

4. Do you want to renovate, fix up, or change nothing at all?

Your budget will likely greatly influence your answer to this question. If you cannot afford to buy the dream house in its full glory, renovating or “fixing up” a property can be a tempting option.

If you decide to go down this route, then you are in for a fun, creative – but also lengthy process.

Please make sure you have worked out a budget for all the changes and renovations needed before you close the sale. You might discover it is worthwhile waiting another few years if the budget works out to be significantly more than you initially expected.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Below is a snapshot of current rate and term refinance Texas mortgage interest rates taken from the mortgage rate research web site, ForTheBestRate.com (9:52 AM MST 1/9/2012). Please visit the site for the criteria used in the survey. Mortgage rates are subject to change without notice.

30 Year Mortgage Rates
Quicken Loans: 4.000% Note Rate, 1 Pt, $1553 Fees, 4.149% APR
Amerisave: 3.750% Note Rate, .837 Pts, $1995 Fees, 3.902% APR
FFSI: 3.750% Note Rate, 1 Pt, $0 Fees, 3.832% APR

20 Year Mortgage Rates
FFSI: 3.750% Note Rate, 1 Pts, $0 Fees, 3.865% APR
EverBank: 3.625% Note Rate, 0 Pts, $852 Fees, 3.674% APR
AimLoan: 3.375% Note Rate, 1 Pts, $1995 Fees, 3.603% APR

15 Year Mortgage Rates
Quicken Loans: 3.250% Note Rate, 1.25 Pt, $1553 Fees, 3.547% APR
EverBank: 3.000% Note Rate, 0 Pts, $852 Fees, 3.061% APR
FFSI: 3.000% Note Rate, 1 Pt, $0 Fees, 3.145% APR

10 Year Mortgage Rates
EverBank: 3.000% Note Rate, 0 Pt, $852 Fees, 3.089% APR
Amerisave: 2.750% Note Rate, 1 Pts Pts, $1995 Fees, 3.172% APR
FFSI: 3.000% Note Rate, 1 Pt, $0 Fees, 3.211% APR

About the Author:

Nat Criss works with ForTheBestRate.com, a resource for searching current mortgage rates in your area.

Related posts:

1. 30 Year Mortgage Rate Average in the Southwest Hovering Around 4.00% Guest post detailing mortgage rates, and how they are currently...
2. Mortgage Assistance and Tax Relief for First Time Home Buyers Programs meant to help consumers into homes will only last...
3. Delving into the Paperwork: Part 3 – A description of mortgage paperwork A look at the mortgage paperwork. Details of what to...

Related posts brought to you by Yet Another Related Posts Plugin.

Below is a snapshot of current rate and term refinance Texas mortgage interest rates taken from the mortgage rate research web site, ForTheBestRate.com (11:34 MST 11/15/2011). Please visit the site for the criteria used in the survey. Mortgage rates are subject to change without notice.

30 Year Fixed Mortgage Rates
Aurora Bank: 4.000% Note Rate, 1 Pt, $757 Fees, 4.157% APR
Amerisave: 3.875% Note Rate, .663 Pts, $1995Fees, 4.011% APR
First Financial Svs: 3.875% Note Rate, 1 Pt, $0 Fees, 3.958% APR

20 Year Fixed Mortgage Rates
FFSI: 3.750% Note Rate, 1 Pts, $0 Fees, 3.865% APR
Quicken Loans: 3.990% Note Rate, 1 Pts, $1553 Fees, 4.197% APR
CloseYourOwnLoan.com: 3.750% Note Rate, .625 Pts, $1345 Fees, 3.899% APR

15 Year Fixed Mortgage Rates
Aurora Bank: 3.125% Note Rate, 1 Pt, $757 Fees, 3.430% APR
Amerisave: 3.125% Note Rate, .862 Pts, $1995 Fees, 3.397% APR
First Financial Svs: 3.250% Note Rate, 1 Pt, $0 Fees, 3.396% APR

Zillow Mortgage Marketplace indicated that today’s 30 year fixed rate mortgage average in the State of Texas was in the 3.85%-3.90% range.

About the Author:

Nat Criss works with ForTheBestRate.com, a resource for searching current mortgage rates in your area.

Related posts:

1. 30 Year Mortgage Rates Matched All-Time Record Lows Last Week Guest post to help guide you in choosing the best...

Related posts brought to you by Yet Another Related Posts Plugin.

Although a home inspector is best when you’re serious about buying a home or property, there are certain things that you the buyer or seller can address with a simple scan of the house. Below are just some of the things you can look for with the naked eye when buying a home.

1. Cracks in the drywall – They themselves can be a minor enough issue to address but signal a more serious problem. Drywall cracks, especially those that run vertically or horizontally, can be the sign of a serious problem with the foundation. Doors that don’t open or close properly can also let you know if the foundation is in need of repair.

2. Wet spots – These can be common in two story houses. A look up to the ceiling can let you know if anything upstairs is leaking. A trained eye can even see if the ceiling has been repaired, which is a signal for past plumbing problems.

3. Cabinets under sinks – Checking the cabinets below sinks can also let you know if there is or has been water damage. Look for water stains, damp wood, or other signs that can tell you if a sink is leaking and/or if work needs to be done.

4. Grout issues – The bonding agent that holds tiles together can also be seen with the naked eye. Any cracks in it can signal any number of issues including foundation issues, unlevel floor, improper floor, and others.

5. Attic appearance – You may never use the attic, but the house sure does. Having a proper look at the attic can let you see what kind of insulation is being used and how much, if there has been any rodent infestation, and even the state of the roof, which brings us to:

6. Roofing issues – Although a home inspector can truly tell you what condition the roof is in, you can spot issues yourself. For example, if shingles have been laid over shingles, it is definitely a sign that the roof needs work. Peeling shingles, cracked tiles, and other incongruities in the roof can also be seen with the naked eye.

7. Grading – Those with a keen eye can spot if the ground slopes water away from the house as it should be, instead of towards it. This is especially important in homes that have basements, as water being directed towards the house can often go into the house, which brings us to:

8. Basement – If a home has water entry issues, the basement will show them. Moldy, wet spots in the ceiling, walls, and even floor can all be signs of serious water issues. You can even use your hand to check concrete and other areas to feel if they are damp.

9. Signs of infestation – When looking in the attic or in cabinets, check for wires that have been chewed through or droppings. Holes in exterior walls and chimneys that aren’t properly covered can also be signs that rodents have made this home their own.

10. Inspect the home inspector – Getting an amateur to inspect a home you are interested can cost far more than it saves. Make sure the home inspector you choose has been in the same location, has no outstanding complaints with the local BBB, and you can even see if they are certified with an association such as the American Society of Home Inspectors.

Bonus! Energy star – If looking for a green home or lower energy costs, simply looking at all the appliances from the fridge to the AC and spotting the Energy Star logo lets you know if the appliance is an efficient one and can save you big bucks in the long haul.

Author:

Kim Reid is a licensed real estate agent and owns the site Masters In Real Estate Guide. She likes to write articles about everything related to Real Estate business and educating future agents.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

How safe is your home? Nothing bad has happened to you. You have not fallen through a window. You have not had an electrical fire. You have not tripped on that step. No one has drowned in the pool. Why is the home inspector making my home sound like a death trap? I was interviewed recently for a magazine article about safety, and we talked about escaping through windows. Did you realize that windows have to be positioned in your home to allow for a quick escape? Most people do not consider this fact. One of my recent clients was more concerned about a burglar than escaping from a fire. I have had a few phone calls from sellers informing me that I had broken the law by reporting on a possibility that something could happen or be a safety concern. I point out that in certain cases the law requires me to do just that type of reporting in certain instances (such as with arc fault circuit interrupters), so why would the fact of reporting on another possible safety issue be illegal? One area of concern is the swimming pool, and problems there may make finding homeowner’s insurance difficult.

    I think this is a wonderful scene. You have a covered deck with ceiling fans. A garden that is pretty nice. A pool to enjoy on a hot summer’s day.  I loved having a cup of coffee in the mornings by the pool when I was growing up. Afterwards, I could swim a few laps. If I enjoy this view so much, why would I as a home inspector state that this view is problematic? Because I know that the buyer might be in a predicament during closing: no insurance. Backing up a minute: not all home inspectors examine the pool. I do not inspect pools. My view is that to inspect a pool properly, you have to go through the equipment well. I could do that, but I am not familiar with every type of pool equipment set up, and I feel that I could miss too many issues. That being said, I always examine the pool for problems, but this examination is not a proper inspection. I frequently discover the same issues. Pool heaters probably need some repairs, or their could be broken/missing handles. My real concern focuses on pool safety, and that is why I want to ruin the idyllic scene in that photograph.
    Small children feel like they can do everything, including swimming. My two year old is convinced that she can swim. These children will run out of our homes in excitement to go into that pool. This is why many homes now take two steps to ensure that these quick little water lovers do not hurt themselves. First, doors leading out to an area where there is a pool should have an alarm. A parent hearing the door alarm will know that the door has been opened. Secondly, there should be a fence blocking any direct route from the door into the pool. A toddler may not be able to open the gate, or the gate will slow them down enough for the parent to reach them before the child reaches the pool. Both items are simple, but most older pools were not designed with this idea. The issue becomes the insurance company for the buyer. A few of my clients found themselves having to make a quick correction to their homes to meet these two standards. If they did not, the clients could not obtain homeowner’s insurance. From the seller’s perspective, the repair was not needed, because they have insurance, so why is the buyer having a problem. Often, the seller obtained their insurance before insurers made such demands. Consider: does your insurance company send an official out to examine your home each year before renewal?
    Knowing that this may be an issue for my clients, I mention this part of pool safety in my reports. If you have an alarm system, the alarm company could have a setting for these doors exiting to the pool area sound off an alarm when opened. I have found that homeowners turn the alarm off when they become annoyed with the beeps. The fence is a bit harder, but a small metal fence would suffice. I mean a fence that cannot be easily crossed, so the height is important. I mention the metal fence, since there is a type with a post that can be screwed into the pool deck. when you have those cement decks. Wood fences can be affixed as well with the aid of proper fasteners. This situation is not the end of the sale, but would you not want your home inspector to inform you of this problem?

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

I walk with the client during my home inspection, and I point out an issue with the hydro-therapy tub. The client explained to me that this was not a problem, because the builder had already explained this to him, and showed him that it was not a problem. The issue was access to the motor for the tub. There was none. The builder had explained that the access panel to the drain was the access to the motor, so if I told the client that there was no access, I was misinforming him. I had to explain that the panel was just a panel. The builder had forgotten to cut the access hole. I also had to explain that this was where the drain was located, and that the motor was probably somewhere else. Where? I did not know, because there was no access. As we continued our walk, I had to dispel more misinformation delivered by the builder, and this bothered me. Good builders explain to their clients why the built the way they did, and what the resolution to this situation is. For example, the hydro-therapy tub may not have access, but the builder can leave extra tiles to deal with the fact that a plumber will have to break the tile to access the motor. Many builders do tell their clients that the home inspector will bring this up, and this is what they have done as a solution.

    What else did I find? Most things are easy fixes for the builder, and can be quite visible to my clients. This photograph is of a door. Obviously, the builder has not completed the trim work, even though he said the home was ready for sale. This was an obvious fix that would be noticed during the walk-through. The client noticed the stairs that did not have trim at the base, but who would notice that the trim over the windows was not properly attached? We do not notice some issues that are not in our line of sight. In this home, inserts for the door handles were missed. Some insulation was missed.  Filters were not installed in return chases for the air conditioning system, and the client did not know that some vents were simply intended to equalize pressure in the home. An issue that would have been hard to spot was the tool stuck into the shingles at the very top ridge. There were simply many little things.
    If everything is a small issue, then maybe I do not need a home inspector. Maybe. Most of these items could have been reported by the client to the builder if the client knows what to examine, and if the client is willing to crawl over the entire home. Some things we do not consider. I saw several contractors working for a builder notice that there was no water in the home. All of these workers found their own way around this problem. The cleaning crew went to another home for water. The yard crew set up their sprinklers on the lawn, ready to go, then they left. I could not find the water meter. Since I reported that the meter had been buried, the builder sent a crew out to find the meter, and they placed the box in position. The biggest problem that I find usually has to do with the air conditioning system. Specifically the heater is not tested when a home is built in the summer. My clients typically believe that since the cooling system is working, the heater is working, especially since this is a new home. Sometimes they are right, but I have found heating systems that do not work, because the installation was not completed.
    I believe that most builders intend to do the best for their clients. Often problems are failures of communication. However, I know that my clients will benefit from my knowledge, or from any other home inspector. A home is a complex system, and the builder may not be going through every aspect to see the issues. The home inspector fills this position.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

I am glad when readers send in their questions. I have not really posted them here, because some are answered in other posts, or the response may not be enough for an entire post. The following three questions were posed to me recently and I thought they can help others.

What is your advice on refinancing?

As a home inspector, I am not much involved in this process, so I can only really comment on what my own experience is. I have been hired by lenders to create a report on the exterior of the home, mainly the roof.  Lenders are more interested in the appraisal. You had an appraisal when you bought the home, so they may accept that one as being still valid. If not, they can require you to have a new appraisal. Why are the lenders asking for an appraisal or even an inspection? They want to know that there is no major problems.  What you should know is that you can hire your own appraiser. The lender will charge you around $500 to have an appraisal, but you could find your own appraiser for less. My biggest piece of advice is know what you are agreeing to in the contract. For example, if the lender is willing to roll the cost of closing into the mortgage, they may also be charging you a fee for that service, which you will then be paying interest on with your monthly payments. Basically, the lender is looking for ways to make money for themselves. This is not a bad thing, but this situation does mean that you need to examine what is in your best interest.

Who can perform a home inspection, and when should they be preforming that inspection?

I have mentioned this answer in other posts, but this question does keep coming up.
A home inspection performed for the buying or selling of a property has to be performed by an individual who has been licensed to perform real estate inspections by the Texas Real Estate Commission; however, a buyer could hire a qualified electrician to examine the electrical system, or a plumber for the plumbing system. This professional cannot produce a home inspection report, but they can report on what they are qualified to examine. Some buyers may walk through with a general contractor, or even a knowledgeable friend, but again these people cannot produce an official report. The problem with looking at a home with a friend instead of a home inspection is that a seller may not be too willing to accept the finding.
    Sometimes sellers are frustrated by the timing of a home inspection. When the home inspection takes place is actually an agreed upon event. The standard is that there is a ten day period when the buyer has to make any and all inspections that he desires. This ten day period is based upon when the buyer and seller come to an agreement for the purchase. The Realtors arrange for when the inspections will occur. This could mean an inspection on the weekend, which I have found sellers do not like, but buyers prefer. The weekend days do count towards that ten day period though. Can this ten day period be extended? Yes. Again, this can be part of the contract. What if the buyer has a home inspector for a cousin in a different city? If the buyer told the Realtor that this inspector can show up in fifteen days, the contract may reflect that period. The seller and the buyer have to realize what the agreement is. Hopefully, their Realtors would explain these facts. The period also may be extended if the separate parties agree to the extension after the original agreement.

Can you caulk the z-flashing above the window?

Caulk, caulk, and caulk. I do seem to mention caulking quite a bit on my reports, and I bet other home inspectors do too. This may lead homeowners to caulk in places where they should not. Above you window, you will want some type of flashing to divert the water that may be behind the siding. This means that the flashing is behind the siding, and then comes out over the top of the window. If the flashing is caulked where it comes out from the siding, the diverted moisture will stay behind the wall. This caulk should be removed. To properly caulk the window, you want to caulk where the window frame meets the wall or trim.
    To check for possible damage without any special tools, you have two options. First, is looking at the interior and exterior walls around the top and sides of the window.  Do you see stains? These can be from the moisture build-up behind the caulked flashing. Then press on the interior and exterior walls to see if you feel weakness. Press on other parts of the walls for comparison. If you feel weakness, there could be damage behind the wall. If you have a small awl, I would use it on the exterior trim. Pressing on the trim may reveal moisture, but the awl can tell you more. An awl will go into any wood with enough force, but if you can press into the trim with little force, then there may be moisture.
    If you have a home inspector, ask them to check the are with a moisture meter. This is the simplest test that a home inspector should perform. A more expensive test is having an inspector with an infrared camera. This examination is quite useful, but I am not sure that the expense is always needed for the buyer.

You can use the the form on the question about your home page. I reply by the next morning.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

With the housing market in a rough patch throughout recent years, the search for a new place to live can often be more of an issue these days, even in an outstanding area such as Houston. Searching for a new place at an affordable price can be tough. Fortunately, there are some simple options and suggestions that can help a residential search get on the right path.

When searching for Houston Apartments or houses, the process should begin with location. For those who have lived in or around the Houston area and are in the midst of a prospective move, knowing the different communities is not likely to be much of an issue during process. For those that are new to the area, taking advantage of resources will allow them to learn about the different communities, neighborhoods and towns surrounding Houston. There are always some factors in choosing location, including the school system, proximity to work and activities in the area.

Using the internet as a resource in the housing search is crucial for many as the web has continued to grow. Over the years, housing resources on the internet have become easily accessible and loaded with great content as the internet has transformed to a major avenue of advertisement. While it’s likely that most people embarking on a housing search already use the internet to their advantage, it’s important to use it properly to avoid any missteps throughout the process. Look for trusted sites with excellent content. Doing so should bring about an easy way to setup visits, as well as search for new locations and properties.

As the search for a new property takes on to the stage where site visits begin, the importance of observation comes into play. It’s very important that a clear outline of wants is in play before these visits take place. As likely the most important part of the process, it’s crucial to remember to take some notes on walkthroughs and discuss after the visits, that way a clear frame of mind can go into the decision making process.

Last but not least, using a reliable home inspector is of great importance. Reliable inspectors will make sure that any issues blind to the naked eye aren’t lost in the process. The last thing anyone wants is an issue to slip through the cracks and end up costing major money in the long run, which is why the difference in a quality and non-quality home inspector could end up saving you money down the line.

Even though these are rather simple suggestions, they are no less important in the process of finding a new place to live. Every situation will be different and it’s likely that many people employ these strategies already. However, using these suggestions in the correct way and following through in the process of looking for a new place to live could end up making the search a little less difficult.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Your Real Estate Agent is an insightful resource when it comes to purchase contracts but you may be curious on what contingencies help you most when buying a home.

To ensure the safety of your family, many purchase contract contingencies contain clauses concerning home inspections and variables surrounding them. Under the home inspection contingency, buyers have the right to hire a home inspector and conduct a complete inspection of the home in question. This is an essential step in the home buying process and the clause is there to help you. As the buyers, you may issue a Request for Repair after the inspection is conducted. If this is the case, the seller must receive a copy of the home inspection to ensure that they are completely informed.

Within a home inspection, many assessments are made including those concerning lead-based paint, the roof, sewers, pests, and more. This is to your benefit! To give you more on the contingencies involved with these inspections, we offer you some useful insight:

-Federal law gives buyers 10 days to inspect the home for lead-based paint. This may not be relevant if purchasing a new model but if the home is built before 1978, it may raise some concerns.

-You may consider hiring a roofing company to complete a roof inspection for many home inspectors cannot risk walking on roofs due to possibility of damage and/or liability if damages occur. If you want to take a look for yourself, we suggest using a ladder and binoculars so you can get a bird’s eye view of the roof without laying a foot on it (or through it).

- The purchasing contract should specify who would pay for any pest, radon, mold or asbestos inspections. You need to consider whether or not the outbuildings or garages are covered in the inspection as certain sellers may take advantage of this loophole.

-Water sources become very important elements making sewer and, if necessary, private well inspections essential aspects of the purchasing contract. Plumbing companies have the ability to insert a camera into the sewer line to check for damages during a sewer inspection so you can be assured no tree roots or deteriorated plumbing is lurking beneath the surface. If the home is on a private well and not connected to city water, you may want assurance that the water is potable. If not, the water may not meet acceptable health standards and could put your family in harm’s way.

Be sure to read through any contracts you will be signing, as you want this to represent you in a way that makes your new purchase the right one.

For more information on inspections visit http://www.hermannlondon.com

Written by: Mary Lawler

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.