Buying New Construction…How Do I Begin?

Writen by Sheldon Salnick

The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date.

Overall Dollar Budget

To establish a budget for purchasing a home, you should speak with a mortgage professional prior to looking for property. In terms of your budget, keep in mind that parking is usually not included in the purchase price that is quoted by the developer. In addition, in today’s market the list price of the unit is typically not negotiable.

The best way to establish a budget is to determine how much money you will need as a down payment and how much money you will need as a down payment and how much you feel comfortable spending, based on your gross income, for monthly payments. Remember that the real estate taxes are generally included in your monthly mortgage payment and should be calculated at a minimum of 2% of the purchase price.

If your down payment is less than 20% of the purchase price, your lender will require that you purchase private mortgage insurance (PMI) - this charge will also be included in your monthly payment. Also factored into your monthly expenses are your assessments, both for the unit itself and a separate assessment for parking. And finally, add your monthly mortgage payment.

Location

Generally speaking, the higher the density of the area, the more costly the condominium or townhouse will be. Then checking out locations, you may want to consider less developed areas of the city. Such areas are typically less expensive than those in more developed areas. Note, that as density increases with new development, it is highly likely that your property will gain in value, resulting in a higher return on your investment.

Cost Per Square Foot

When purchasing new construction, the favored method of comparing value is cost per square foot. This is the method used by developers to initially price their developments. With the cost per square foot in mind, you will be able to compare different properties on an equal basis and determine whether you are purchasing at a favorable price.

Also to be considered when looking at the cost per square foot price is whether the developer has included such items as granite counter tops, marble bathrooms, and black or stainless appliances as standard features. In Chicago, prices per square foot range from $225 to as much as $1000 per square foot in the Gold Coast.

Finishes

You will need to carefully examine which finishes and appliances the developer has included in the base price versus which are considered upgrades. Note that the more expensive finishes such as granite and marble are not usually included in the base price of a one bedroom unit.

Be sure to get a detailed list of specifications in writing from the developer, indicating the brand and model number of each appliance. Don’t be confused by the finishes and appliances that are shown in the models you see they may not be the same as those included in the quoted price. Models are typically finished with granite and marble, undermount sinks and hardwood floor laid diagonally but such features may not be considered standard, particularly in smaller or less expensive units.

Upgrades

As you can imagine, the cost of upgrades can vary considerably. Developers commonly charge their cost plus a 20% mark up for upgrades; others may charge even more. Try to determine the costs when you and your realtor are writing up the initial offer. By determining all costs during the contract period you reduce the chance that upgrade costs will exceed your budget.

If you keep in mind that many new construction units are not ready for occupancy for a year or two, you will understand the importance of having all upgrade costs in writing as part of the initial contract - at today’s prices rather than at costs calculated at inflated prices one or two years later.

Parking

One of the essential elements of resale value is parking. In a loft conversion or a high rise building, parking can vary from approximately $25,000 to as much as $60,000 depending upon the level of luxury of the building and the availability of parking in the area.

Since parking spaces have dramatically increased in value, you should seriously consider purchasing a space whether or not you currently own a car. Without parking, the later sale of a unit may be more difficult than that of a comparable unit for which parking is included in the price.

Delivery Date

Although your contract will specify a delivery date, provisions in the contract will often allow the developer to deliver your unit much later than the specified date without penalty. If this is an important issue to you, you should keep in constant contact with your Realtor during the construction process as delivery dates can be delayed for as long as a year and, in rare occasions, even beyond that. You should also speak with your attorney and incorporate terms into the contract so that your interests are protected in the event this should occur.

Working With A Realtor

Purchasing a new construction residence can be a rewarding experience and a wise investment. But there are definitely nuances involved in purchasing new construction, including the track record of the developer, the number of “flippers” purchasing in the project, and the percentage of sold units.

You will be best served by using a Realtor who is familiar with new construction market, the various developers and their product. With your Realtor at hand to answer all your questions, your interests will be represented and protected in all communication with the developer.

If you rely on a real estate professional, you will spare yourself a great deal of the aggrevation associated with purchasing a new construction home and, best of all, this representation will be at no cost to you the developer pays your Realtor’s commission.

About The Author

Sheldon Salnick is a Realtor with Rubloff Residential Properties. He has worked with new construction buyers for the last 13 years and has represented over $200 million in new construction. For more information or guidance in the purchase of a new construction home, townhome or condominium, he can be reached him at SSalnick@Rubloff.com or www.SheldonChicago.com.

Buying a home? Consider Hiring an Attorney

Writen by Charles Essmeier

The most expensive thing most people will buy in their lifetime is the house in which they live. In addition to being expensive and taking decades to pay for, the purchase of a house also represents one of the more complicated legal transactions most people will ever encounter. Despite the need for contracts involving bankers, city, state and county tax assessors and other legal entities involved in the sale of land, most people never even consider hiring an attorney to assist them with the purchase of a home. That’s unfortunate, as the relatively small amount of money saved by hiring an attorney now could possibly save thousands of dollars later.

How can an attorney save you money? By double checking all of the terms and documents of the transaction to make sure everything is legal and proper. Most people who buy homes don’t bother to check zoning ordinances or whether or not the home or fence on their property encroaches on that of a neighbor. An attorney can check these things along with tax issues and any one of a number of minor things that most buyers never even know to think about.

Right now in Texas, a number of homeowners who lost their homes to foreclosure are engaged in lawsuits against the company that sold them their houses. Among the allegations in the case are suggestions that the company that sold the property did such things as:

A lawyer would have caught any one of these problems, had even one of the displaced homeowners bothered to hire one ahead of time. And yet hundreds of buyers appear to have been victims of mortgage fraud because they weren’t willing to spend a few hundred dollars to have an attorney look over the documents before they signed them.

Buying a house is agreeing to an obligation that can tie up your finances for decades. It only seems reasonable that if you are going to spend hundreds of thousands of dollars on a place to live, you might want to consider spending hundreds of dollars to make sure that the terms of your purchase are legal and reasonable. A little money spent now could save you a lot of money later.

©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.net, a site devoted to information regarding mortgages and home equity loans.

Home Owning A Major Move

Writen by B Shelton

If you are one of those perennial renters who are now thinking of making that major move of home owning, there are pitfalls you would want to watch out for that are not very obvious to the naked eye. For this, it is wise to consult the experts in this uncharted field to help you in your decisions. Find yourself a good real estate broker who’d be sympathetic to your financial condition and would help you thresh out what sort of a house is locally available to you that you is within the reach of your budget.

A good real estate broker is useful for helping you make wise decisions in home owning on a limited budget. He would be one who would walk you through the entire, seemingly complicated process of the world of real estate and give you a simplified but extensive version of everything so you would be educated, aware and not one to make any foolish misstep that could result to unseen, expensive traps of financial devastation. He will look out for you, that you won’t be drained of all your resources without an eye out for the contingent expenses in favor of this one major move in your and your family’s life. If he is an honest, involved broker, he will even recommend and help you get owner financing.

Your broker would help find the most affordable payment scheme for you, and not advise you to get a hefty bank loan for your purchase if he thinks you would not be able to afford it in the long run and leave you out in the cold when you default in payment. Many mortgage plans have been proven unwise to adopt for such a big project because of unforeseen circumstances, like if you would be out of your present job, for example, that you have not prepared for.

This is why it would be wise for you to involve your family; define to them what each one of you can and cannot do from the time you sign the loan and/or the payment plan until the time the property is fully paid for. Go into details if you need to, to make the younger ones appreciate what “change of lifestyle” means. They should understand that home owning is no joke and it would require some compromises in the lifestyle that your family may have gotten used to. If there are any objections to this major adjustment in lifestyle, or any slight indications that you, your wife or your kids wouldn’t be able to sustain his or her part of the deal, then home owning is not for you nip it at the bud before it blossoms.

Brian Shelton makes home buying in the Dallas easy! Visit http://www.StopRentingDFW.com/

Beginner’s Guide to How Buying, Flipping, Optioning, and Lease Purchasing Properties Works Part II

Writen by Stephen Henry

There seems to be a lot of hot air and expensive courses promising amazing property deals that fall fom the sky into your lap if you will only buy their course but typically there are only 2 ways to achieve success.

Here is the Second Part of our article on success in this area.

5. How to get EVERY seller in your area to call you first.

No agents commission, that’s the key.

Imagine you have a house in a certain area and you are thinking of selling. You do your sums and realise that the selling agent will take $10,000,$20.000 or more PLUS advertising costs (and maybe not sell your house).

Wouldn’t you answer an ad that said “Sell your house, private buyer, no agents commission fees, no advertising costs, contract completed in 7 days”.

6. Your Area Book. I carry around with me a book on the area I have as my hunting ground, just a simple accounting journal book, costs about $3 and I set it up like a dictionary so there are 2 4 pages for each letter.

Every time I find a property for sale or rent I write down the street name under the letter as well as owner’s name and phone number (or agent if that’s all I have), property size and details. You will be surprised how quickly this simple technique creates an awareness of the property and values in your area.

7. Know your desired outcome before you go into any deal. Be clear about what you want. This might seem obvious but you would be surprised at how many people don’t do anything because they are not clear in their own minds as to the outcome they want.

8. Motivated Sellers. These are the gold mine you hear about. The reason is that there is a farly elastic range as to what represents true market value. The reality is that market value is whatever the property is either listed at or sold at, depending on who you talk to.

The biggest question I get is why would someone sell their house for less than what it is worth. Here are the reasons. Not all houses are equal, if a house is dirty and neglected people aren’t that interested (most people buying houses see it as it is, not how it could be), 2nd is that market value is a very slippery thing, 3rd is people have different things going on in their lives. If they have lost their job and now everyone else is into the stockmarket and the propert market is slow, that investment house they bought at more than it is worth now is suddenly a pretty scary monster.

Maybe they just are sick of bad tenants and maitenence bills.

9. Who you sell to. This is where you have your second edge. There is a regular flow of 20 to 40 % of people who cannot get traditional bank finance but who are still keen to own their own homes and able to get financing within 2 years if they can show figures.

Hopefully this has given you enough information to think about whether you really like this enough before you go spending big money on overpriced information.

Don’t believe the hype, you will have to put in the hours, but if you enjoy houses and properties and dealing with people then this is a very good business.

All the best,

Stephen
StephenHenryConsulting.com

P.S. 97% of people never do anything with their courses and books on property and wealth other than watch them gather dust.
Information is not enough. Free New CD Program uses advanced Self Hypnosis and Jungian Mind Language so you can exactly program your subconscious mind to get the results you want, fast.

(I am giving this away Free because I know that after you have had success using this great tool you might be interested in using me as your 1 on 1 personal and business coach, either way it’s still absolutely free, no obligations).

Get Your Free Property Wealth Advanced Self Hypnosis CD Program Visit Here Now.

How to Own Real Estate with No Credit Checks

Writen by Martin Thomas

It has been an easy journey for me and my associates over the last few years. The more we discover about Real estate, the more we realize what a gift it is to the human race. The industry, the concept of ever increasing intrinsic value of property. Its simply the perfect vehicle for anybody wanting to retire early and fast.

You must agree, real estate is a very subjective investment object, and where one person will consider one price tag of a unique house as too dear, another might consider the price way too cheap.

It’s this subtle intricasy that wealthy individuals use to manufacture huge returns in real estate. The largest obstacle to you is not making a fortune in real estate. That is a given.

The question is how to get into real estate in the first place.

Most people dont have hundreds of thousands lying around to buy property outright. So like 99% of people, they seek to borrow the funds from banks or other similar commercial lending organizations.

These keepers of the wealth “key” use their criteria to say who gets in and who doesnt. Its unfair but its how it is. Their credit checks keep thousands from entering the one and only industry that is guaranteed to deliver real profits, real results.

Real estate is amazing. A person can find anything he/she needs in it. He can buy for a humble abode, he can purchase for wealth, he can puchase to make dreams come true. But if you dont make the grade, if you fail to have the correct paper work, the correct historical references and back ground, then you will likely fail to get the credit you require to own the home you wish to purchase.

Is there a way to avoid this harsh burden? And still get the house you want? To be able to own property and sell it for your profits so you can purchase more.

Of course there is.

Buying homes while avoiding credit checks is something we intentionally sought to achieve.

Why? So we could take all the deals we saw lying around and turn them into a profit. We wanted to buy and sell 100 homes per month. We could see so much intrinsic value sitting there waiting to be scooped up. Millions of dollars just waiting to be taken by anyone willing to buy for profit and not for long term living.

My partners and I did well. We did it without requiring money down OR dancing to a banks tunes. We did it our way and were rewarded for our efforts helping young couples and families get into their own homes. It was rewarding from a fiscal stand point, but more importantly, we feel we deserved the millions we earned because the people we helped were thankful too.

The key is in the paperwork and the structure you apply to the deals you do. Buying outright using a banks credit is only one way to secure property. We really weren’t after so much control of a property. True we needed some control, but not outright ownership because we weren’t retail buyers.

We were/are controllers of deals and not purchasers. So what need do we have for finance or even the down payment moneys. Once you have the contract paper work and wording right, you are free to replicate and replicate as prolifically as you wish.

That is the key to owning real estate without credit checks. You see, we did this until we could afford to comfortably buy our own dream homes without needing the services of a bank.

And we certainly didn’t need their help to control the profits we found and created.

My very best to you.

Martin Thomas is a professional investor that trades in yachts, precious stones and real estate. Jack Reynolds is one of Martin’s students, Jack was a broke Insurance salesman only 2 years ago, today he owns assets valued at several million dollars. What did Martin teach Jack in 24 short months? You can read about Jack’s remarkable and rapid transformation and download Hayden’s famous book “The Million Dollar Mentor” by clicking here

Amorgos Island Real Estate in Amorgos Greece Houses Villas Hotels For Sale in Amorgos Island

Writen by S Pappas

Amorgos island real estate in Amorgos Greece. Houses villas hotels for sale in Amorgos island. Within this article one can find what to consider, and the steps one needs to take when purchasing a property on Amorgos island.

1. Find first a property that is of your liking via the internet or even better after a couple of visits to Amorgos island. Keep a record of all the properties you visited in Amorgos Greece. Prices of Amorgos island real estate will vary greatly. One will also note a big gap in the city evaluation, and the market value usually the city evaluation being lower up to five times, however in some case the city evaluation will be greater than the market value, so don’t get taken for a ride.

2. Pay special attention when purchasing land, on Amorgos island in Greece.

If one decides to purchase land and wants to build, the building laws in Greece change frequently therefore you will also have to hire an engineer or a topographer who will inform you about the specific piece of real estate in Amorgos Greece. A lawyer and a notary cannot help you out in this step. If they do you will be getting wrong input, and might end up with some Amorgos island real estate which is not usable.

3. The costs when purchasing Amorgos island real estate are as follows. Calculated on the city evaluation or the price put on the deed of sale, which ever is greater, the notary will charge you about 2% the lawyer from 1.5% to 2%, and the government transfer taxes today are about 13%, however the government tax rates concerning real estate in Amorgos Greece change from time to time. Engineer costs for land purchasing may vary from 300 to 1000 euros. Also if a real estate agent in involved the agreed fees must be paid or else action may be taken against you down the line.

4. After the job is done from the lawyer and notary ask from the Amorgos island real estate registry the 4 certificates concerning your real estate in Amorgos Greece. These should be a certificate of ownership, one that states there are no existing loans or leans, a certificate that there are no claims private or government against your Amorgos island real estate, and a certificate of transcription or in simple words that your deed is actually registered at the Amorgos island real estate registry.

5. Don’t forget that after all of the above you will be required to submit income tax for the next fiscal year. In the income tax form you submit you will be required to prove where you got the funds to purchase real estate in Amorgos island in Greece. For more details don’t forget to ask you lawyer, before purchasing your favorite piece of real estate in Amorgos island. Be careful with this step, you don’t want any unexpected surprises down the line. If you can’t prove where you got the funds, the purchase value on the deed of sale as well as the notary fees will be calculated as an income and you will be taxed on this amount in an escalating form, from 0% to 43% about, which is the same scale as one has to pay for Greek income tax or income tax in Greece.

This article is designed to help people interested in purchasing Amorgos island real estate.
thanks

by S Pappas greekinfo@gmail.com
Rooms Apartments in Athens Greece Athensrooms.
Free Greek travel information traveling in Athens Greece Greekster.
Apartments in Athens Greece Self catering.
M Savard. Inspirer, author, professor, astrologist.

A Cabin for All Reasons

Writen by Eriani Doyel

Whether your idea of a cabin is a one room hideaway that you can retreat to for a few days of solitude, or a beautifully appointed “home away from home” that the whole family can enjoy for weeks at a time, there are many reasons that you should consider this type of investment for you and your lifestyle.

In our busy society with work and family responsibilities constantly teetering in the unbalanced position, you may feel a great deal of pressure to find ways for your family to connect, or to just get away from the hustle and bustle of every day life. A cabin can be an excellent way to accomplish this without some of the hassles associated with travel.

You can get this type of vacation home in almost any size and style. Some are brick, some are stone, and some are the “traditional” log style. Sizes range from a simple one room style, to a cabin that has all of the modern conveniences down to a satellite dish and internet connection. In order to decide what size and style is best for you, you should take several factors into consideration.

1. What will you be using the cabin for? If you will use it as a hunting base camp for you and a couple of your buddies, you may just want a simple one room set up with a stove and a bathroom area. If you are planning on having gatherings with multiple families, you may want something more like a lodge with several rooms with various bed arrangements such as bunk beds, twin beds, or even queen or king beds. You might even have a master suite. Be sure to plan for plenty of room for the family to get together and play games or to just enjoy each other’s company.

2. Where do you want the cabin? If you live near a mountain or a wilderness area it might be easiest for upkeep and other matters to keep the cabin nearby, but if you want someplace to travel to that is out of state you may want to plan for some type of upkeep schedule with someone in the local area Or design the cabin with minimal upkeep needs. Utilities will be an issue, so make sure that you can get hooked up with the local utilities or private water, sewer, and electric providers.

3. What do you want your cabin built of? As stated earlier, cabins can be found in any manner of materials. Logs are “traditional” and can be very beautiful. There are also plans that you can purchase to build your own log model. But, if you want something else, there are many plans available for stone and brick cabins as well. Just check for local availability of materials and any building or zoning restrictions in the area.

4. If cost is a concern, try to build with a group, such as your family, or a group of really good friends. Have a contract drawn up for the long term care considerations and how usage will be determined. It will make decision making easier.

If you would like a way to spend more time getting back to nature and connecting with yourself, your family and your friends this can be an ideal solution.

Eriani Doye writes articles on Real Estate and Finance. For more information about purchasing or renting a cabin visit dotcabin.com

The Bare Necessities of a Residential Lease

Writen by Adam VanBuskirk

As the small time landlord goes about getting started managing the rental property they just bought, they are sure to discover that there are literally thousands of different variations of the residential property lease. It is always best to have a lawyer draft a lease, but lets be honest, how many people can afford to have a lawyer draft them a real estate form every time they need one; and still make profit? More realistically, the landlord will often navigate the web or travel to brick and mortar office stores to buy an affordable version of a lease. With so many to choose from, the list below highlights a few of the bare minimums that one should check to ensure that the lease includes them.

Preliminary Terms This section is usually at the beginning of the lease and includes such things as the landlord’s name, the tenant’s name, the address of the residence being rented, and any appliances that are included in the property that are owned by the landlord (Often times, a separate appliance section may be included in the lease).

Term Self explanatory, the term is the length that the tenant(s) will be renting the residence (premises).

Rent/Security Deposit All leases should of course include the rent. The rent section will often included the monthly rent amount, the exact day of every month that the rent will be due, and the address at which the tenant(s) can mail the rent check. A good lease will also include the amount a tenant must pay after a certain amount of days their rent is late and the fee that they must pay if their rent check bounces.

The security deposit often has a section of its own and usually states two things. First, exactly what the security deposit amount is, and secondly, the number of days before the security deposit will be returned to the tenant after their departure.

Subletting/Subleasing One always want this section to appear in the lease. It ensures that the tenant will not rent the residence from the landlord and then turn around and rent it to someone else, leaving the property with a tenant that the landlord didn’t approve.

Redecoration/Alterations Also self explanatory, this section ensures that the tenant must get the landlord’s permission before painting the walls, fixing an appliance, or re carpeting the floor.

Holdover Policy This policy is great for busy landlords (Are there any that aren’t?). It usually states that the current lease will hold over as a new month to month lease if the tenant and landlord cannot get together in time to sign a new lease before the current one expires. This situation is also useful for tenants who are unable to stay another year or are unsure of when they are going to need to move out. It gives both the landlord and tenant flexibility without immediately signing a new lease.

Pets Four different textboxes often accompanies a pet policy. First, can the tenant have pets; yes or no? Secondly, what kind of pets specifically can the tenant have if the answer to the above question is yes? Third, a monthly maintenance fee that the tenant pays to maintain the cleanliness of the residence, and fourth, the extra security deposit that the tenant must pay for having the pet.

By checking for the above criteria on any lease one intends to use, they are safeguarding themselves against a few of the “sticky” situations that may arise from lack of specification in the residential lease. A lease can be both a friend and foe to the landlord, so make sure that you create a friend instead of a foe.

The author is both the founder and owner of LandLordDocuments.com

Buying A Home Zoning and Architectural Review Board Restrictions

Writen by Raynor James

When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. It’s a good idea to understand these limitations before you buy, so that you can decide whether you’re willing to live with them or not. After you buy, it’s too late; you’re stuck.

Zoning

In most jurisdictions, zoning limits how a piece of property can be used. There are many variations of residential zoning. In some, no business activity is permitted. Some allow business activity but no signs. In some, no commercial vehicles can be parked regularly.

Some residential zones permit only a single dwelling per quarter acre, per acre or per ten acres. Most limit the owner’s ability to subdivide land. Some allow only single family dwellings while others allow high rise apartments. Still others allow apartments, but limit the height of apartment buildings. Many do not allow mobile homes.

Some jurisdictions have “overlay districts” in addition to zoning. These are common in areas with many older buildings and a community desire to preserve them. Additions to homes of this type are obviously restricted, but restrictions regarding the location, style, height, and even whether they’re allowed at all or not, also applies to fences, sheds, walks, gates, and similar ancillary structures.

Fredericksburg, Virginia has a forty block “historic district.” Residents of this area must follow normal zoning rules. However, they must also submit an application to the Architectural Review Board for any changes to the visible exterior of their homes. This can be a surprise for some new homeowners in the area.

You can find detailed information about zoning, overlay districts and the like fairly easily. Simply visit the courthouse for the county in which the property is located or ask your real estate professionals for assistance.

Raynor James is with http://www.fsboamerica.org providing FSBO homes for sale by owner. Visit our “sell my home” page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.