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5 Mistakes to Avoid When Shopping
Posted on Tue, 15 Aug 2017, 09:30:00 AM  in Home buying tips
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Purchasing a home is unlike any other experience you'll ever have. This is an investment that can provide considerable returns throughout the years. Whether you're buying a primary residence, a vacation home, or a rental property, however, there are five, critical mistakes that you should be sure to avoid.

 

1. Not Considering "Walkability"

"Walkability" is a relatively new term in the real estate industry that refers to the accessibility of essential businesses and community features. When looking for a5 mistakes to avoid primary home or a rental property, make sure that building residents will be able to access things like dog parks, hiking trails, a few good shops, and a decent restaurant or two by walking. A high score in this area means that buyers will have a higher likelihood of connecting with their neighbours, fully exploring their neighbourhoods, and remaining in their homes for a significant amount of time.

 

2. Failing to Account For Potential Changes in Household Dynamics

Be mindful of the fact that your household dynamics could change over time. This is an especially important consideration to make if buying a primary residence that you hope to retain throughout the remainder of your lifetime. Not only do you have to account for the possibility of kids, but you also have to consider the likelihood of having aging parents move in. There are a number of ways in which family dynamics can change and the best homes are sufficiently flexible for accommodating all of these changes. These houses might have attached, in-law units, extra bathrooms, guest bedrooms, or other large-sized spaces that are suitable for conversion. Some properties simply have enough unused space on the overall lot for expanding the primary building.

 

3. Making an Offer before Consulting With an Agent

With greatly increased access to timely and accurate market information, more consumers are using the web to sidestep the need for real estate agents altogether. Sadly, however, they often do this to their detriment. Not only can an agent guide you through this transaction from end to end, but this professionals is also capable of providing the most current market info and pricing data. As such, when you get ready to enter into negotiations, an agent can make sure that you're not offering too much for a property, or potentially offending a seller by offering far too little.

 

4. Meeting with Sellers before Lining up Your Funding

In tight markets or markets with fewer properties for sale and lots of qualified prospects who are eager to buy, you definitely want to have your funding lined up before actually pursuing homes. In fact, no matter what the local market conditions may be, consulting with lenders and getting loan approvals should always be among the very first steps that you take. After all, you won't really be able to submit a firm offer on any property until you actually have the funds to back it.

 

5. Buying before you’re Actually Ready

Another important step to take during the formative stages of the purchasing process is to consult with a financial adviser. You want to make sure that you're actually ready for this commitment, particularly if you've never purchased or owned a home before. An adviser can help you calculate the total costs of ownership. He or she may additionally be able to recommend the best loan types for meeting your long-term financial goals. If this is a decision that you're really ready to make, your financial adviser can even tell you how much you money you should spend, which may be far different from the amount that you're qualified to borrow.


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How to Set Your Cash Flow Goals
Saturday, 15 July 2017, 11:20:00 AM
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Cash flow is a common word mentioned in most real estate investing conversations, and it’s quite important to understand the term. 

If you are a landlord, if you charge a higher rent than your expense, the difference can accumulate some wealth and act as a potential cash cushion to prevent the punches that come with many vacancies or when something odd happens.cash flow

Eventually, something unexpected will occur, and it could just be anything from your property roof requiring repair and so forth. For some people, increasing cash flow is not a significant aspect compared to other investment goals. However, for someone with a passion for investing in real estate, it is important to set your cash flow targets. This guide will share some insights on how to do that.

Consider Your Investment Goals and Tax Implications

Investors who make a lot of money may be looking for losses and tax write-offs to offset earned income. From a taxation point of view, having more income may not help you in certain areas of your life: 

Before your next investment, it is important to seek local area information on aspects such as market trends and regulations. Also, you can ask your financial advisor how much money you can add without increasing your taxes. 

Some investors are focused on long-term capital appreciation and gains. However, the thing is, getting cash flow is not what every real estate investor wants.

 

Ways to Increase Cash Flow

i. Repairs and Improvements

One of the best ways to increase property rent is by making repairs and improvements on the property. If you want to invest in expensive properties with little improvement, it can be difficult. The more expensive the property, the more cash flow you require.

ii. Classic Arbitrage 

This is yet another classic approach: accessing your equity in your property and investing cash in other areas, getting higher returns than your interest rate.

iii. Design a Back-end Product or Service

If you know your original offer to potential customers won’t earn you any profit, look for ways to make higher price aspects on back-end products and services. For example, the first thirty minutes of catering is free, but later the price shoots up.

Or perhaps a lawyer may be inclined to adjust your will at a cheaper cost if she thinks you are a potential client for future consultation services.

iv. Know Your Expenses

Discounting through coupon websites or by yourself can attract new customers. On the other hand, selling your properties at a less than intended price won’t help you achieve a positive cash flow. You should never discount, but if you choose to do so, ensure you understand the costs and impact of your offers and get ready for the fallout. Also, you need to know the total cost basis—the amount you paid for something.

Also, you should be aware of the price you are willing to charge, the profit margin as well as the cost of your offer. Ensure that you are operating at a profit and not a loss.
The above tips are important and will come in handy if you want to improve your cash flow.

 


How May I Contact You?

Please ask me your question by filling out this form. You will receive an answer to your question at the first opportunity I have to reply. I appreciate the time you have taken.

 

 


Thank you for taking the time to complete this questionnaire.
I will be in touch with you.

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