Real Estate Definition - Part 1
Real Estate Definition Essential Terms Everyone Should Know in order to understand the real estate process. Real estate has its own share of language and some of it is hard to understand. Learn your home buyer vocabulary before you start looking for your dream home.
Annual Percentage Rate (APR)
The annual rate charged for borrowing or earned through an investment and represents the actual yearly cost of funds over the term of a loan.
Private Mortgage Insurance (PMI)
Borrowers have to pay this when they take out a mortgage from a commercial lender and pay a down payment of 20 percent or less.
Adjustable-Rate Mortgage (ARM)
This type of mortgage allows the lender to change the interest rate at certain points during the term of the loan.
Conventional Loan
This type of mortgage is not guaranteed or insured by any government agency.
Fixed-Rate Loan
This type of loan has an where the interest rate doesn’t fluctuate during a “fixed-rate” period of the loan. This allows the borrower to accurately predict the amount of future payments.
Federal Housing Administration Loan (FHA Loan)
This type of mortgage is issued by an FHA-approved lender and insured by the Federal Housing Administration.
Interest Rate
The amount charged on top of the principal by a lender to a borrower for the use of assets.
Many homeowners and even real estate agents looking to flip a property tend to focus solely on the interior design of a house or apartment. While there is absolutely nothing wrong with sprucing up your interior and decorating it for comfort and beauty, it’s important to remember that the value of your property and its overall aesthetic appeal will be largely influenced by its curb appeal and highly useful house extensions like garden storage sheds.
Whether you’re trying to restore your property to its former shining glory or if you’re trying to upgrade it to maximize its value in the real estate market, the curb appeal will have a leading role to play. With that in mind, here are the four excellent ways you can improve the curb appeal to breathe new life into your home.
Start some ways away from the house
Curb appeal is not just about the quality of the paint job on the porch, or how beautiful your front garden is – it’s also about those distant elements you never even think about. You see, curb appeal starts some ways away from your property, at the furthest point from which people can see your house. This is usually, you guessed it, the curb at the far end of the street. This is where you need to start.
Inspect this area closely and look for any unsightly elements that might be hindering the aesthetic appeal of your property. Move the trashcans somewhere else, and look for any irregularities in the pavement such as potholes. Now work your way slowly towards the house and fix everything that needs fixing before you move on to the property itself.
Invest in some beautiful landscaping
Landscaping is one of the best and most effective ways to elevate the aesthetic appeal of your home’s exterior, and an excellent way to increase its market value at that. However, it’s not just about maintaining a tidy lawn or removing wild shrubbery on occasion; no, landscaping encompasses the calculated use of natural elements to frame the design of the entire property.
Some of the best low-maintenance design ideas for your garden and landscape, in general, include high-rise plants, trees, artificial grass, water features and ornaments, beautiful rockery, stepping stones, and more. All of these elements should work together to frame the design and lead the visitor on a beautiful path towards the porch and the house itself.
Join the LED revolution
The way you light your home’s exterior can make or break the entire aesthetic design of the property. But beyond pure aesthetics, outdoor lighting needs to be functional, as these features need to last a long time. This is why the LED industry has grown so much in the US in recent years, and across the globe as well. In Australia, for example, electricians specialize in outdoor lighting that boosts curb appeal aesthetics and functionality.
Down Under, homeowners spend a lot of time under the stars, on the front porch or enjoying quality time with their family on the front lawn in the evening, hence the need for an experienced electrician from Inner West to design the external lighting scheme using LED lights to illuminate the entire property and at the same time accentuate key features. Follow the same mindset and invest in LED lights yourself, and don’t forget to illuminate everything from the walkway to the front porch and all other outdoor areas on your property.
Rejuvenate the exterior with new paint
And finally, there’s nothing quite as refreshing and rewarding as the look of a fresh coat of paint adorning the exterior of your home. Repainting the walls and other features such as the front porch and the fence can help you elevate the value of the property in an affordable way, but most importantly, make the property feel more inviting and homier as well.
Depending on the size of the house and the scope of work in general, it shouldn’t take you more than a weekend to repaint the walls, the window frames, the porch, and fence. While you’re at it, be sure to upgrade all of the hardware and don’t forget to replace any corroded wood you might find – it will prolong the lifespan of the element and elevate the aesthetics in the process.
Final thoughts
The curb appeal is the crucial factor that will either deter or invite homebuyers to check out a property. What’s more, the curb appeal of your home has the power to influence your mindset and shape your perception significantly, making you feel positive as you’re approaching the front door. Be sure to tend to these quick-and-easy tips, and you will have created a beautiful curb appeal that will make your home that much more valuable.
If you are planning to put your home on sale in the near future, chances are that your prospective buyer will be a Millennial. This working-age generation is currently between 23 and 38 years old and ready to choose and settle in a property and this is where your offer steps into the picture.
Therefore, to reach a fair price for your lovely home and to make sure that it goes into the hands of people who will take care of it, you need to learn as much as you can about millennial tastes. With that in mind, here are 4 steps that will help you stage the house in a manner appealing for a typical millennial.
Work on the curb appeal
Most buyers know from the first moment they see a house whether they like it – a great interior may sway them to change their opinion, however, this first impression is essential for their decision-making process. This means that you have to trim the grass and any bushes that you have in front of the house, to make it presentable. Also, make sure that the driveway and everything else is clean since almost every millennial dislike messy views. Another thing to consider is to change your front door because this generation takes pride in being eco-friendly while old doors with their many cracks and holes are not so energy-saving.
Tidy everything up
As mentioned, clutter and uncleanness is not something that millennials can stand. They prefer minimalism and everything having its place in the house so a dusty collection of old memorabilia will not be attractive to them. The first piece of advice is to declutter the rooms so they seem as if they only have essentials when it comes to furniture and decoration. It may seem like an undertaking but it really doesn’t have to be time-consuming and it will also be useful to cut down the number of things you would be transferred to the other home you will be living. The second piece of advice is to scrub everything clean since simple and clean is what millennials look for.
Pay attention to the room layout
Fragile figurines and expensive furniture that is a hassle to clean do not make up a room display approved by millennials. Their love for the visual simplicity and open spaces is no secret so providing them with the feeling of open space could be a perfect idea. If a renovation project is not something your budget can sustain, you can achieve a similar impression by getting rid of chunky furniture and leaving more free space. Another thing which might tip the scale to your advantage is a pet-friendly rug because this generation has taken the love for animals to a whole new level. Besides being beautiful, these rugs are durable and can stand being vacuumed daily, as well as a bit peed and nibbled on by the little groomed angels.
Transform the spare room into an office
If you have a spare room you are using as storage space, you might want to put it to another use. Millennials often work from home or run their own business, so the idea of a house already having a home office would be pleasing. The trickiest thing about turning your storage room into an office space is getting rid of all those things you don’t need. Once you are done with that, all you need to do is set up a table and a chair next to the window and make sure they have enough power sockets for their many gadgets. Then you can place your laptop on the table and gingerly arrange some pens, notes and a coffee mug, to look as though you just left the table. This will certainly leave a strong impression and make them decide on your house.
The perfect starting point with staging your house for a millennial buyer is thinking from the environmentally responsible perspective. A messy driveway with garbage everywhere and rooms filled with unnecessary things are in no manner eco-friendly so decluttering and cleaning everything are the first steps to boosting the appeal of your home.
In line with thinking green, millennials will not find luxurious decorations attractive because they always aim for simplicity. So, it is best to put away your fragile expensive trinkets and leave the bare essentials and a lot of free space because too many things can make the room be stifling. If you sprinkle your house with thoughtful elements such as office space and pet-friendly additions, you will be on your way to winning over their hearts.
Multifamily real estate is typically a diversification option for versed investors, and not a first-timer’s leap of faith. You need knowledge, expertise, and the negotiation skills to match the level of competitiveness in this industry, but it also makes for a wonderful choice in case you’re already familiar with real estate investing in general, and you’d like to enrich your portfolio further. This profitable choice can bring you a stable source of income, and it can serve as a stable, long-term investment that you can ultimately sell if such a need ever arises.
However, no matter how experienced you might be in other forms of real estate investing, jumping into this versatile field takes some research and adjustments. Let’s go over a few handy tips you can use on your own journey in order to make the most of this lovely opportunity!
Deciding on the location
Not all multifamily properties are created equal. In fact, among many factors that will affect their overall value and desirability in the eyes of your future tenants, one of the main deal-breakers can be the location. Since your target buyers and renters are families, you should consider features that will appeal to such an audience. Is there a reputable school in the vicinity? How about a playground? Are there safety measures in the neighborhood, such as regular patrol and security surveillance?
There are all kinds of conditions that might inspire a family to feel welcome in that particular location, so it’s vital to do your homework. That way, you can pick a location that will elicit offers before the ink dries on your investment contract.
Managing the management
Unlike one-person units and other real estate options that don’t focus on families, working with multifamily real estate properties requires quite a bit of legal knowledge and managerial skills. Whether you decide to be the key manager of the entire property you invest in, or you choose to hire a property manager, the decision is entirely yours. What matters most is that you have a solid base and that you fulfill all of your legal obligations.
One of those responsibilities includes obtaining the initial maintenance schedule for your property so as to compile the most relevant data on how you take care of your property. That means you need to follow the prescribed legal rules and meet your local government’s expectations when it comes to property maintenance in order to avoid financial and other penalties. If you alone cannot handle the burden of multifamily real estate management, make sure to work with an expert who can take over a portion of those chores.
Land on the right financing solution
A common issue even among versed investors is obtaining the right sum of money to purchase the property you find the most lucrative. These massive investments require a stable financing solution so that you can have that much-needed initial capital for this venture. Direct lenders are considered a safe and reliable option while partnering up with other investors is another viable opportunity especially if you already have trusted partners in the business.
Increase the value of your investment
Who said that being an investor is a dull occupation? On the contrary, if you choose to invest in multifamily real estate, you’ll need your creativity and imagination so that you can amplify the value of the properties you purchase. From increasing functionality of the space and installing a ground source heat pump, all the way to beautifying the exterior with finer design solutions, even the smallest of changes can lead to a major surge in value.
Sometimes, you’ll be able to find properties in a pristine location, but in desperate need of a thorough restoration or remodeling in order for them to be rentable. Make sure that this is an investment that is in line with your budget, and you’ll have a diamond in the rough in your hands, ready to become a prime spot for families after spruce.
Plan your tenant strategy
Finally, never invest in a property without preparing a strategy for your tenants. With the right policies in your hands and clearly defined procedures, you’ll be able to attract the right people to your property in no time.
Multifamily investing is a perfect opportunity to diversify your portfolio, and an exciting way to grow your community. Use these tips, and turn this endeavor into a streamlined journey towards purchasing your first multifamily property!
November 6, 2018 is around the corner and I am sharing two propositions affecting Real Estate properties with you.
California Proposition 5
Property Tax Transfer Initiative (“Prop 5”) concerns calculating property tax on owner-occupied replacement properties.
- A “yes” vote on Prop supports amending Proposition 13 (1978) to allow homebuyers who are age 55 or older or severely disabled to transfer their tax assessments, with a possible adjustment, from their prior home to their new home, no matter (a) the new home’s market value; (b) the new home’s location in the state; or (c) the buyer’s number of moves.
- A “no” vote opposes amending Proposition 13, 90 & 60, currently in effect, to change how tax assessments are transferred between properties for homebuyers who are age 55 or older or severely disabled.
California Proposition 10
Local Rent Control Initiative (“Prop 10”) concerns rent control for rental properties affecting tenants and landlords.
- A “yes” vote supports allowing local governments to adopt rent control on any type of rental housing, thus repealing the Costa-Hawkins Rental Housing Act.
- A “no” vote opposes the initiative, thus keeping the Costa-Hawkins Rental Housing Act and continuing to prohibit local governments from enacting rent control on certain buildings.
You can read more about each Proposition at the links below.
Read what they are all about. Make a decision and remember to vote!
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Prop 5
- http://voterguide.sos.ca.gov/propositions/5/
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Prop 10
- http://voterguide.sos.ca.gov/propositions/10/
Foot Notes
- Prop 5 is in addition to initial prop 13 voted in 1978, Prop 60 voted in 1986 and prop 90 voted in 1988
- For additional info on prior propositions, simply google “California Prop” and the number and read all about it.
