Maintaining Your Homes Value - Six Quick Tips

In todays real estate market, selling your home may not be as easy as in years past. The home that stands out as "better than average" has the advantage.

One way to insure that your home sells for top dollar in the future is to keep up with the repairs and maintenance every home needs. Not only will your home remain attractive, but it will likely sell more quickly and for more money some years down the road. Being proactive about handling routine beautification and maintenance tasks will help your home retain its value over the years, and will be less costly in the long run than putting things off.

Here are six things you can do to stay on top of home maintenance issues:

1. Maintain your interior. If you have the carpets cleaned regularly it will not only improve the appearance, but will improve their wear as well. Check wood and vinyl flooring for warping and tears and replace it when needed. Make sure wood cabinets are properly cleaned and finished to improve the longevity of the wood.

2. Check for plumbing leaks. Small leaks can often be overlooked until they become large leaks. Repair the plumbing problems early. The cost of repairing water damage is often ten to twenty times the cost of repairing the leaking plumbing itself. Don't wait until the problem shows itself with a water spot on the wall or a soaked carpet. Leaks are most damaging on the second floor of a home, as the water runs inside the walls or first floor ceiling and causes extensive damage.

3. Paint your home before it really needs it. Don't wait until the paint is cracked and peeling, or you can't remember the color of the stucco. By that time you may be looking at costly repairs in addition to the painting.

4. Keep your yard in good shape. Trim the bushes and maintain the lawn and shrubs. Keep mature trees trimmed from overhanging the house so they don't deposit leaves and debris on the roof, which accelerates the aging of shake roofs. Follow your community's rules for brush clearance for fire safety.

5. Check the roof often. The rainy season is not the time to find out you have a missing or cracked shingle, or some other unseen damage. If you don't know how to check your roof, call in a roofing inspection professional.

6. Inspect your home. Walk around your home and yard frequently to look for things that need repair or replacement. Be objective. Put yourself in the place of a home buyer. What would you be looking for as you walked around the house and yard of a home you were about to buy? If your home is more than 10 years old, it is a good idea to call in an inspector and have a "Whole House" inspection. This will give you an idea of things that might need attention and can save you money on more costly repairs in the future.

Owning a home is a great joy. It's also a big responsibility. Taking on the responsibility pro actively will make home ownership more joyful, and prosperous, for you in the long run.

Investments In Property Verses Investments In Other Business

Ever since man has been earning money, he has been looking to invest his hard earned money in the right and most profitable channels. Investments have been on the minds of people since we can remember. Formidable investment options have competed with each other with shares, bonds and property leading the show. Of the three, property has always held the upper hand when it comes to a safe and sound investment option. Yet, despite all its risks, shares continue to find its own league of followers. If you are a new entrant into the investment market, you need to have a deep understanding of all the investment options in order to invest rightly. The smart investor is the one who spots the best investment option miles away.

Measuring returns:-

There are several ways to measure the returns that you get from an investment. One is to measure the net income and the other is to measure the change in the value of the asset. And of course you have to keep the risk factor in mind. In more recent times, the definition or the way by which you measure the returns has undergone a change. Returns is now defined as the percentage net income over a period divided by the value of the property or the net yield, and the percentage change in value over an equal or the same period of time. For example a property with a total yield of 15% and an increase in the value of 5% gives a total return of 20%. At the same time, the risk is defined as the volatility or the deviation over the same period of time.

Why Property?

In the US, shares were declared as the riskiest investment option in the last few years according to a survey. But they also gave the highest returns. The lowest returns were given by bonds and the risk was the minimum as well. While property fared in between the two. So wouldn’t you like to invest in a channel that does not have as much risk and at the same time, delivers a standard percentage of returns? A lot of investors look to invest a part of their income in each of the above mentioned assets. This is a smart investment policy because even if a bad situation were to arise, each one of the assets would react differently to it. Not all of them would go through a decline at the same time. The co relation of property with equities is quite less. Hence even if equities fall, it is not necessary that property will follow suit.

Sub classes within the same:-

Even within property there are two distinct sub classes. One is listed property and the other is directly held property. Of the two the later is the more stable option and also has less risks involved. So if you too are confused by the greatest investment debate of all times, then be rest assured that property definitely holds the upper hand. A two fold income source, least risks involved and an ever growing demand are what fuel’s the property market ahead. So what are you waiting for?

Why Property Is The Best Investment Option Today

Each and every person in this world works 24x7 to earn. A lot of us then look to stabilize and multiply the earned money by investing it in potentially lucrative avenues. There are a lot of investment options which can be chosen. But there are risks involved as well. For example the capital market was once the chosen investment option for most investors. But the risks involved were just too many and this led to a gradual decline in the numbers. Then people looked to invest in small businesses. Over time this investment option too failed to sustain the large numbers and is now fading away. But one investment option has stood against the test of time and stayed as reliable as it ever was. Yes, we are talking about property. Property is one of the best and most recommended investment options of all times. But what is it about property that makes it so lucrative an investment option?

The positive cash flow:-

Property is probably the only investment option which allows you to have a positive cash flow all along. After all what is more attractive than making money while you own the property? A lot of people are today looking for loans with low interest rates. The trick is to look for property which will then generate a positive cash flow. A lot of people look for three to four less expensive properties than looking for one which is rather expensive as it increases the positive cash flow. Interest only loans are another way of generating positive income. Since you will only be paying the interest for the first few years, you can easily use this loan to keep the cash flow going. Then by the end of the interest only term period, most people sell or refinance the property. There are of course several other ways by which you can maximize the income that you can generate with property.

The rules of the game:-

Like any other investment, property too has its own set of rules. If you play your right cards at the right time, you will be maximizing your profits. Have you ever heard of opportunity cost? Well, it is the cost of something in terms of a lost opportunity. For example if you invest an amount like $100K, in a property in Maine, the opportunity cost would be the amount of money you could have made by investing the same money in a city like New York. The opportunity cost would also be the amount of money that you would have made by investing the same money in some other business. In property, it is extremely important that a person understands the opportunity cost factor. A lot of people try to invest in a couple of properties and then keep it for a time frame of 20 to 25 years. But what they do not realize is that in doing this they are limiting the earning potential that the property has. There are options of selling or refinancing as well which might need to be looked into before investing in ay property.

Real Estate Financing - Creative Financing Tips

This year, Americans are expected to borrow $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Before you do any real estate financing, if you have bad credit because of consumer debt like credit cards or personal loans, you'll want to try to eliminate or reduce this debt since it will affect your ability to qualify for a commercial or home mortgage and make the estimated monthly payment. If you have monthly obligations like car payments, credit card payments, personal loan payments, student loan payments, etc., be sure to take these into account when you are determining your bottom-line affordability figure.

If rates in the current market are high, you'll probably get a better price with an adjustable-rate loan. A fixed-rate mortgage means that the interest rate and principal payments remain the same for the life of the loan but the taxes may change. Loan programs for down payments of 20% or less require that you purchase Private Mortgage Insurance (PMI).

Interest rates may go up if a rosy picture is painted that the economy is flourishing - like more jobs being available; this can lead to inflation which will send the rates up. You'll also need to consider closing costs and the escrow account for your taxes and insurance. Also keep in mind when you're financing or refinancing that most people move or refinance within seven years.

Most of all you'll need to decide what you can afford to buy. And if a loan application isn't approved for the first time, it can always be resubmitted after modifying it, for example, like raising the amount of the down payment. If you're a first-time home-buyer it is possible that you may qualify for a lower down payment or lower interest rate; check with mortgage brokers, online mortgage companies, your county housing department or your employer to see if they know of any programs like this available.

Revealing a FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans. Thirty-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage; if the market is good, you can benefit from locking in a lower rate for the full term of the loan. 15-year mortgages are an ideal option if you can handle the higher payments and if you'd like to have the loan paid off in a shorter period of time, for example, if you plan to retire.

A 20-year fixed rate mortgage term will mean higher payments, when compared to the 30-year fixed-rate mortgage. If you've applied to other lenders, when you finally do select a good lender you may have to explain why there are other inquiries from lending institutions on your credit report. Check with your CPA or accounting professional; you may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, like points, on your income tax return.

Be careful when working on your real estate financing; if you make too many loan inquiries, with applications, it may look like you're shopping for credit; this can be a red flag for many lenders. Keep in mind that adjustable rate mortgages are best for homeowners who aren't planning on staying with a property for a very long period of time.

Collect a few of the local home guides you see stacked up at the local grocery stores or supermarkets and look at a few of the ads in the real estate section of your Sunday newspaper for houses you might consider buying. Get lots of advice about real estate financing, mortgages, interest rates, mortgage rates, mortgage refinance, bad credit mortgages, etc., from many different sources, don't rely on one source, and think about what makes sense to you. And thinking positive about real estate financing is important but so is being realistic.

World's First Billion Dollar Home

Nestled in the heart of one of the world's poorest countries lay the construction site of all construction sites. Ranked #14 according to Forbes' latest edition of the world's richest people with an estimated net worth around forty billion dollars, Mukesh Ambani is building the world's first house with construction costs that could break the billion dollar threshold.

Mukesh Ambani serves as chairman of the India-based conglomerate Reliance Industries and is constructing a towering edifice that will be called Residence Antilla, after the mythical island. A maverick that split from his brother a few years ago over the family business, Mukesh Ambani has seen his wealth soar as the petrochemical company, Reliance Petroleum has seen profits skyrocket the last five years. With that growth as well as strategic investments in a number of other industries and developments, Ambani has become the obsession of many young men's dreams and arguably one of the most disliked people in all India.

When Mukesh Ambani joined his father's company, he recreated it, shifting its focus from textiles to petrochemicals and polyester fibers. He also oversaw the construction of sixty technologically-advanced manufacturing facilities that enabled Reliance to raise its capacity from one million tons annually to over twelve million. He also spearheaded the building of the world's largest, non-corporate governed refinery in Jamnagar, India. It produces over 660,000 barrels a day. Coupled with the other power generation and port infrastructure investments, Mukesh Ambani spent upwards of twenty-four billion dollars.

Such savvy have helped Ambani develop the conglomerate that is Reliance Industries. His most ambitious undertaking may be Reliance Infocomm. A network of information and communications technologies, Reliance Infocomm looks to connect over 1,100 cities across India with a broad array of voice, data, and other services along a fiber-optic network at the lowest cost in the world.

Part of his charm and problem is ventures like the new billion dollar home he is constructing in the financial heart of Mumbai. A nation with significant problems, Mukesh Ambani is moving forward in constructing a grand tower that will serve as his permanent residence but be the ire of peoples contentment just as long. According to architectural plans, the billion dollar house will measure in excess of 570 feet tall. It will have twenty-seven floors. Of that, six will be used to park the one hundred and sixty-eight cars he owns. Another four will be used for living quarters for the Ambani family of six. There will be one floor for vehicle maintenance. One floor set aside as a theatre floor with some expensive garden features. And one floor completely dedicated to gym equipment. The roof will have three helipads, one for him, one for his wife, and one for the kids. It is believed that a staff of 600 will be used to maintain and keep the house and its dwellers.

With hanging gardens and high ceilings, the billion dollar home on Altramount Road will be eco-friendly as well. The frame of the building will be serviced by a spine, similar to a human one that will be supported by structural pillars. Included in the construction are waterfalls and a huge garden that will cover an entire floor. The outside of the home may be even more impressive than the inside with what is being called, a living wall, running the length of the home. Plant life will scale the entire height of the building, setting a world record for the tallest continuous living thing.

That six hundred staff will be citizens in one of if not the poorest countries in the world. While the Indian economy is doing extremely well, there has been very little trickle-down to the working class citizens of the country. In fact, the amount of money that Mukesh Ambani will spend on the home is equivalent to the annual income of over 1.5 million Indian workers. Mumbai is home to over seven million slum dwellers. And an additional three to four million live in substandard housing. Mumbai is a study in contrasts. With square footage costs exceeding $1,800 in the district where Ambani is building, housing in Mumbai is hard to come by.

With the economy in India, the practices of the newly minted wealthy have ruffled the feathers of the established, old money. A generation ago, wealthy families had little desire for material possessions. Many of them avoided owning cars and lived in small apartments. They did not drive Mercedes or BMW. They did not want to have any association with appearing eccentric or indulgent. That practice has gone out the window with men like Mukesh Ambani building extravagant, opulent buildings to suit their fancy. With tracts of land unavailable, wealthy families have decided to build up. Skyscraper construction has risen in Mumbai as evidence that land is at a premium.

Recently Mukesh Ambani had construction of the billion dollar home put in jeopardy as a government agency attempted to rule the land deal that paved the way for the house illegal. The tracts were owned by an orphanage who received what was considered fair market value for the property. In fact Ambani's offer was the highest received by the orphanage. With work only a year away from completion it is difficult to believe that the government will be able to do anything more than fine Ambani if it is found that he did something illegal. But with his bid being the highest and the orphanage believing it got the best deal available Ambani hardly has a worry. Therefore he can look forward to his birthday celebration in October when a portion of the house will be made available.

Mukesh Ambani must have found his current home, the 14 story Sea Wind unsatisfactory to hold the gala. It does not have the ballroom the billion dollar home has. But it also does not have the headache.

Outsmart Uncle Sam and Keep Your Real Estate Profits!

What if you could have a cool million dollars in your IRA within a few years so you'd never have to worry about retirement income?

What if you could do this without writing another check to your IRA?

The information you're about to read is unknown to most of the world.

Most people think the way to grow your IRA is to make annual contributions and let the manager of the IRA invest it in stocks and mutual funds.

Then, over a period of 20 to 40 years, it grows into a large sum of money for your retirement.

That's the thinking of conventional wisdom.

Let me tell you how I feel about conventional wisdom.

It's almost always wrong!

Let's take a look at a better way.

I speak to groups of people all over the country and sometimes

I ask how many in the room have an IRA. I have never had more than a third of the class answer yes.

So, why don't more people invest in an IRA?

Here's what they tell me:

They can't turn loose of the $2,000 or $4,000 maximum contribution.

Having the money at hand for immediate usage is a lot more important than retirement.

They never thought about it.

They feel they can invest in other investments that can produce more income.

They know they should but never seem to get around to it.

If you're one of these people, it's probably time for you to wake up and take action before it's too late.

You see, an IRA is about all we have left that our ‘’Uncle’‘ will allow us to use to grow filthy rich without paying taxes along the way.

''But my accountant tells me I can't contribute more than $2,000 for me and $2,000 for my spouse each year.''

Your accountant may be right.

There is a limit to how much you can contribute.

But wait!

Go back and ask your accountant if there is any limit on how much your IRA can make in a year from its investments.

He'll scratch his head and tell you no. . . There Is No Cap On How Much Income Your IRA Can Produce!

''OK, so tell me how I can make my IRA wealthy without making any contributions.''

Keep your shirt on, I'm getting there.

If you're a real estate entrepreneur, you're making money from buying and selling or keeping houses.

If I've trained you, you're doing this by using little or none of your own money. The objective is to create cash and cash flow by leveraging your brain, not your wallet or credit.

Your IRA Can Do The Same Thing

That's right. Your IRA can buy houses, the same way you do.

Of course, there are a few rules and more questions.

I strongly suggest you do not do this without good, competent advice and participation.

I must warn you that Uncle Sam frowns on buying a house in an IRA with the intent of flipping it quickly.

They may tax you on the profit.

Perhaps you may want to hold it in the IRA awhile before you flip it.

Perhaps you'll only do one or two a year.

I can't answer these questions for you and frankly, many accountants can't either.

Seek the best advice you can find and do what you feel is best for you.

Your IRA must be self-directed.

You shouldn't get your IRA involved in any deal you or your entity was previously involved in.

If your IRA buys a house, it should go directly from the seller to the IRA and not pass through you. Don't take back notes on houses and give or sell to your IRA.

Keep it clean.

The last thing I want you to do with your IRA cash is to buy real estate. Why?:

Because You Don't Need Money To Buy Real Estate . . . And Neither Does Your IRA

Put some deals in your IRA that don't require cash.

Of course, there are exceptions and rules. So, take the time to learn about the ROTH and use it.

If you qualify I promise you it will be a huge return on your time investment.

Can you option a property without money?

Yes!

Can you wholesale a house without money?

Yes!

Can you take a house ''subject to'' without money?

Yes!

Can you lease/option a house without money?

Yes!

Did you know your child or grandchild can have an IRA you can start without their knowledge, that can become their own when they come of age?

What a way for you to provide for your child's educational future. Without Writing A Check! Without Borrowing A Dime!

Most people spend more time buying a car, planning a vacation or taking in a football game than planning for retirement.

So, what about you?

Getting the Most Out of Your Investment!

Great, you have decided that you want to invest in real estate, perhaps you are thinking of flipping a house or thinking of renting it for long term appreciation. Regardless of your exit strategy, more likely your investment will include challenges such as finding the funds to support the project, finding the right property, dealing with contractors and so on.

The truth is that everyone invests in something throughout their lives. Some of us invest in stocks, gold, stamps, cars, their hobbies or real estate. Personally I believe in real estate not because of what the media says on the 6 o’ clock news but rather due to the fact that history shows that over 90% of all millionaires have become wealthy by owning real estate. If this is true, why isn’t everyone doing it? Unfortunately there is more to investing than most people might think. The first obstacle that most of us have to cross is coming up with the money to invest.

Who says it has to be your money to invest? Lets get high on OPM or other people’s money. Generally humans go through three phases in their lives. When we are born we are dependent on our parents, then we want to become independent and finally we realize that we cannot do everything ourselves therefore we become interdependent of others. You can easily approach your circle of influence to partner with you in a project. For example if you know someone who has some cash sitting around and he is tired of earning 2%-3% at the bank you can create a win-win relationship by offering your real estate expertise in exchange for his investment. Your expertise could include finding the property, renovating it, and taking care of the day to day management activities. The key is to remember to make sure that each one of you brings different values to the relationship. If neither of you have any investment funds but you are great buddies, it’s not going to propel you forward.

If you have owned a house in Calgary for the last couple years you should have seen a substantial equity increase in your home. The money sitting in your home is a great feeling, it gives you security and piece of mind to your family. Ask yourself the question, how much profit is that equity putting in your pocket each year? Banks nowadays will be happy to provide you or your investor partner with a PLC (personal line of credit) against your home and then you can use those funds to invest in real estate and earn a lot more than your savings account would generate.

The Calgary real estate market is so expensive, where do I buy? Probably 99% of the listings today aren’t going to fit your criteria. But that still leaves you with lot of options available to choose from. One of the biggest mistakes that I see Investors making is calling up their REALTOR® and asking them to give them a call when he sees a great deal out there. In my point of view this statement is no different than saying to a Doctor to fix your problem but you won’t let him to examine you. My suggestion to serious investors is to decide what part of Calgary or communities he is planning on investing and get familiar with the neighborhood. The investor will need to consider the type of homes he is after, general size, garage or no garage etc. The more specific the criteria the better chances a REALTOR® have of finding a solution. This approach will also forge the investor to become a specialist in the area and he will have a great insight on property values. It will take some time to go through the learning process but dividends will be rewarding especially when an undervalued property shows up on the market.

You think you’ve found the right house, how do you make sure it’s going to work? Doing too much due diligence will never get you into any trouble, not doing any research will cost you a fortune. At this point you should be educated enough to know approximately how much do certain renovations will cost. It’s worth the effort to visit suppliers to get familiar with prices. I suggest outsourcing the same suppliers as builders are using, this could easily save you 10%-25% compared to retail price. If you just need to replace a couple of doors you can find business in the city who sells recycled materials. Most of the time if you just paint it, it will look brand new and you could buy it at 1/3 of the new door. At the time of making an offer, you aren’t going to have any time to ask contractors to provide you with a quote. Plus homeowners wouldn’t appreciate strangers coming through their homes. Prior to your house hunting, you can interview a few contractors and have a general idea of what their prices are. For instance to replace a carpet in a house it would probably cost $3.50/sq.ft. supply & install or paint $2/sq.ft. I don’t recommend starting to measure floor space when you are viewing a home but you should be able to estimate an approximate cost of repairs in 5-10 minutes by using round figures to the nearest thousands. Always over estimate your expenses because it’s guaranteed that you will have surprises.

What kind of renovations should I be doing to maximize my profit? The trick here is to renovate the house to the point where the potential buyer will fall in love with it but it doesn’t cause the resale price to be above the norm in the community. According to the Appraisal Institution of Canada finished basements will only return about 1⁄2 of the investment and the greatest values are usually gained from the renovated kitchen and bathrooms. If you are planning on doing multiple renovation projects you need to set up a system to follow. You need to now exactly the type of colors, carpet, baseboards, window coverings that you are going to use. Once you have this information nailed done, you are just repeating the same process over and over until it becomes “cookie cutter” and that will save you a lot of time.

After the renovation is complete staging always helps to sell a home quicker and for a higher price. To speed up your learning curve on how to stage a house you can visit a few show homes on the weekend. You don’t need to reinvent the wheel you just need to get some ideas from what works for others.

Finally you’ve got the keys to the house and you are ready to swing the hammer. Prior to submitting your offer you’ve decided what kind of renovations you will be doing and you have an idea how much it’s going to cost. How do you orchestrate the contractors so it won’t be nightmare? First and most importantly who ever you choose to hire at whatever price, make sure that both of you understand the exact plan. The best way to avoid any misunderstanding is to have everything in writing and in great detail. If you want to establish a long term relationships with contractors it doesn’t hurt to discuss your policies and perhaps have them to sign off on it.

Keep in mind that you must take action. As with anything in life, knowledge without action equals nothing. Although, dreaming is an enjoyable and important process, only actions can transfer dreams into reality.