BUYING REAL ESTATE FOR INVESTMENT: TIPS FOR FIRST TIME BUYERS
Well, it's only taken half a decade, but the dying real estate market is finally starting to show signs of life. If you're thinking about making a move on a piece of property, now is perhaps the best time. You can still take advantage of the low prices in most places around the country, and the mortgage rates are on once-in-a-lifetime lows: you can find 30-and 15-year fixed mortgages at about 4% and 3% respectively.
Many aspiring home buyers are surprised to find that a confirmation of the bubble era is back: the bidding war. According to a recent survey of 28 housing markets conducted by the Wall Street Journal, there are fewer homes for sale in each of those places than there were last quarter. This relatively tight stock in the markets as varied as Sacramento, Phoenix and Washington, DC, dictate that the law of supply and demand will kick in. Even in places like Long Island, NY, where there is still a depressing 16 months building properties (brokers consider six months’ worth a healthy number), the number of available homes is falling.
If you're a first time buyer looking to put money in investment properties, here are few basic things to keep in mind.
1. Research is really the most crucial first step when thinking of buying a property. There have been lots of people who've rushed in to a sale because they've fallen deeply in love with a property, only to are regret their decision. It's crucial to keep a cool head when house hunting, and to make sure that you pay attention to the area in General and not only the House itself.
2. Investigating past property prices for a zone can give a sign of whether it's on the up or in decrease and it's a smart idea to check whether you can find whether there are any developments planned close-by. For instance, while a new sports complex in the area could help the value of your property in the long haul, you have to ponder the ramifications of a long, and potentially disruptive, building project. While you never know what the future will bring, it is important to make a plan in the first place-even if you eventually change.
3. As soon as you think you have found the right House, it's time to try and find the right mortgage lender and the right mortgage for you, getting a mortgage as a first time buyer can be tricky, so it's a good idea for you to spend as much time for the process as you can. One of the most difficult things for potential buyers to do first is to build a good credit rating for themselves. This is an important thing to consider if mortgage lenders check your credit rating in the treatment of your application and it helps them to decide if they would take the risk of lending to you.
4. Strengthening your credit rating can be tricky at first, but nevertheless a couple of the most important things to do are to ensure you are registered to vote at every rented property you stay at, you actually take out - and consistently pay off - your line of credit such as store or credit cards, and that you keep your personal info safe from fraudsters. Yet another thing you're wise to consider when considering mortgages - especially joint mortgages - is your life insurance policy. Making sure you find life insurance to cover you and your investment regardless of what happens. While may seem like hard work, by preparing ahead this way, you are increasing your odds of securing the property you wish for and it's surely worth the investment.
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Understand the difference between "listing prices" (what sellers are asking for) and "sold prices" (what buyers are willing to pay).
By comparing these price trends, you'll have a good idea of where the market is heading. The median listing and sold property prices are calculated based on the market activity each month.
Some sales are not immediately available from public records. As they become available, the data are updated.
THANK YOU FOR VISITING!!!
Information provided courtesy of Holli Washington-Keller Williams Realty
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