Category: real estate brokers

News flash: Real estate is in a downturn. Prices are dropping. Does this mean that you should get out of Real Estate investing? No this is actually the BEST TIME to increase your property portfolio. When you are buy property it does not really matter whether the market is up or down unless you are trying to do a fast turn over. If you are holding for the long term then you have to deal with the market fluctuations with an inevitable upward trend at some point. If you can buy at the lower end of the cycle that is the best time to buy of course.

If the market is experiencing a major downturn it is a great time to be buying due to a vast number of bargains. You can buy at rock bottom prices. However, do not get too negatively geared because this is how most investors get themselves into trouble in the first place. Go for positive gearing. In other words make sure your rental income equals or exceeds your outgoing expenses, to include mortgage payments. If you have other income you may be able to stand an extra $100 or more per month to top up the mortgage but try to avoid it. Negative gearing is ok if you have a really good income and a tax problem.

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Buying a home, especially if it’s your first one, is often quite scary. There are so many things you don’t know and terms you’ve never heard before. People often fear what they don’t understand. In fact, studies have shown that this fear literally prevents some people from taking the first steps to buying a home.

For most of us, buying a house is the largest purchase we will ever make. and of course the first time is by far the hardest. So make sure to take advantage of ALL the home buying information you can.

Do some research and be fully informed before beginning your search for a home. Here are the six steps you should take before buying:

1) Before you start your house search, think carefully about what it will be like to be a homeowner. For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far out weigh any drawbacks.

2) Have an idea about your credit right from the start. Your FICO score will normally be between 400 and 850. the higher the score the better your funding chances are. Get a copy of your credit report and review it. Look for any discrepencies and report them to the agency. In some cases you may want to use a credit repair agency.

Here’s a true story about a lady from New York that wanted to buy her retirement condo in Pompano Beach, Florida. Let’s call her Bernice. Bernice found a local realtor online and was going to buy this condo sight unseen.

Well the bank called me to do the appraisal and in the process of gathering information about the condo I found out that there was a special assessment of $10,341 which was due in full at the time of the closing. So I stated this information on the first page of the condo form and in the addendum as required.

So about two weeks after I finished the appraisal I got a call from the realtor. Now this realtor just happened to be the listing and seller agent. She proceeded to ask me why I put the special assessment information in the appraisal because it killed her deal and that Beth backed out of the contract and got her deposit back.

I explained to the realtor that I was just doing my job and that she should be ashamed of herself for not disclosing this to her client. Well needless to say the realtor was not happy with me and slammed the phone.

This unfortunately was not the first time something like this happened to me in my 21 years of doing appraisals.

Whenever you purchase a condo you should always ask and get the answers to these three questions: