http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/real-estate/7-critical-considerations-for-a-real-estate-investment-property-purchase.html http://www.articletrader.com/finance/real-estate/7-critical-considerations-for-a-real-estate-investment-property-purchase.html Mon, 19 Mar 2007 00:00:00 -0500
1. Financing, typically lenders will only lend up to 65 percent of the value of the property when it's for investment purposes. This limit is in place because lenders consider an investment property a higher risk

If you have equity in your current principal residence or in other property, then you may wish to borrow from those sources to maximize your mortgage and financing Generally speaking your investment property. The reason for this objective is because you are allowed to use mortgage interest paid on your investment property to reduce the amount of income and hence tax paid on your investment property.

2. Another important consideration for your investment property is choosing the best location. If you are considering a townhouse or a high-rise condo for your investment, then you want to ensure that it is located close to major shopping, transportation and schools and amenities that will appeal to prospective tenants. Often tenants will only have one vehicle and require these types of amenities to be located close to the property. You will usually get higher rent when your location is desirable.

3. Generally speaking, a high-rise condominium will allow you the most flexibility and least amount of effort and maintenance during the tenancy compared to any other type of property. Once a high-rise condo is rented, it is nearly a hands free investment. This does not come without any cost, as the maintenance fees associated with a high-rise condo will be much higher compared to a townhouse or other type of property. Your second choice for maintenance free investment property may be a townhouse. The reason is that all of the exterior maintenance, such as snow shovelling and lawn and garden maintenance will be taken care of by the condo corporation and not the tenant. The only items that you and/or the tenant will have to take care of are the interior items and these are usually minor in nature.

A freehold townhouse, semi or detached home will require more maintenance and effort on your part and the tenant throughout the year. This may be more desirable or not, depends upon your circumstances. Many investors choose freehold properties for their investment properties as they have the time or prefer to do some of the maintenance themselves or at least have control over the entire property compared to condo type properties.

4. As a continuation of the items considered in number 3, these different properties will appreciate at different rates, all things being equal. For example, if a high-rise condo has an appreciation of 10% in a year, then a townhouse may appreciate 12 to 14% and a freehold property may increase 15% or more. This larger appreciation would be offset by the fact that more maintenance may be required by you the owner.

5. It is important to consider all the expenses when you purchase an investment property. The obvious expenses are the principal and interest costs associated with the mortgage or financing on the property, the annual taxes and any monthly maintenance fees if the property is a condominium.

You may wish to consider regular maintenance items to protect the value of your investment property and the systems that are associated with your property. Other expenses you may incur are regular maintenance items such as furnace cleaning and maintenance and inspection. This is a very important item if your investment property is a freehold. Other items such as the condition of the roof, foundation, interior and exterior walls and windows, appliances, lighting and window coverings, electric garage door openers and any other systems or items that are mechanical in nature should be checked on a regular basis to not only protect the value of your investment but also to prevent the failure of these items as opposed to regular maintenance.

6. Once you have purchased your investment property your other major consideration is finding a good quality tenant. In my nearly 20 years of experience I have found that there are two major considerations in your tenant. The number one consideration is that you find a tenant who has the ability to pay the rent and if possible can show a good history of paying the rent. The second most important item is to make sure that your tenant will take care of the property for you in your absence.

Other items you will have to consider are that you must investigate the credit worthiness of the tenant, their personal and credit history, their employment status and confirmation of employment. You may contact their previous landlord and personal references that they supply on the application. These items can be critical and will give you insight into your prospective tenant. In my experience, the degree to which a prospective tenant completes all fields on a rental application and provides all the information you request and is straightforward and forthright with all answers to your questions and inquires will give a good indication of the quality of the tenant that you are looking at.

7. You have to decide to find the tenant yourself or use a real estate agent. When you attempt to find the agent yourself, you can personally meet the tenant ahead of time and see the type of people that will occupy your property. You will have to do all the credit and personal investigations of the tenant. I have found that when you use a real estate agent to find a tenant for your property, the quality of the tenants are usually better than through private means. The reason for this is that tenants who are relocating with their company or those tenants that have better employment and personal history know that the properties on the mls are better compared to the private properties and will utilize the mls to find their property. As well, the mls is a much more efficient method of finding a rental property and many tenants use the mls to find their next rental.

Of course, a real estate agent can find you a good quality tenant and perform all of the credit and personal investigations on your behalf. In the Toronto and GTA, the typical fee to have your property rented through the mls is one months rent commission.

Conclusion

As you can see, there are many important items to consider with an investment property that you are considering to purchase. Your personal situation, financial ability and degree of involvement in your investment property will ultimately determine the type of property that you will purchase.

Mark Argentino is a Professional Real Estate Agent and has his Professional Engineering degree for Ontario. Mark works and resides in Mississauga Ontario. He specializes in helping people sell and buy homes in the Mississauga area. You may use his website to find real estate information when you are buying or selling a home in Mississauga. You may read more articles, tips, reports, newsletters and in-depth real estate information, visit http://www.mississauga4sale.com

Article Source: http://EzineArticles.com/?expert=A._Mark_Argentino



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buying or You may read more articles, tips, reports, newsletters and in-depth real estate information, visit http://www.mississauga4sale.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/real-estate/79-ideas-and-suggestions-to-get-you-more-%24-when-you-sell-your-home.html http://www.articletrader.com/finance/real-estate/79-ideas-and-suggestions-to-get-you-more-%24-when-you-sell-your-home.html Mon, 19 Mar 2007 00:00:00 -0500
SETTING THE "STAGE" these are some preliminary thoughts...

You will profit by using some ideas compiled in the list below. Beyond the obvious considerations of location, size, present condition and design of your home, buyers look for special qualities that appeal to their emotions.

It is your job to prepare the groundwork, to "set the stage" for a buyer to fall in love with your home. Think of what has made your home so special to you and try to highlight these features. Although no home is perfect, you must try to become aware of its shortcomings. Once you do, you have the opportunity to accentuate the positive and eliminate the negatives by making your home more visually appealing.

For example: a long dark hall will appear shorter if wall papered in vertical pastel stripes; or by hanging a few pictures on the walls and installing inexpensive lights above them, you will stop the buyer's eyes along the way. The monotonous tunnel effect will be immediately eliminated!

Selling your home, though rarely a "fun" experience, can be a painless and profitable one if both you and your agent put in the effort. It is this cooperative venture that will meet your goal of selling your home fast, with the least amount of inconvenience and at the best price and terms for you.

GENERAL

1. Make those minor repairs - no matter how minor.

2. Whatever the season, do some spring cleaning.

3. Have a yard sale or pack away in boxes those items that clutter.

4. Create the illusion of spaciousness.

5. Give your rooms a light, bright look.

6. Use colour and lighting to draw attention to your homes best selling features.

7. Disguise unsightly views- remove heavy curtains, let the light in.

8. Eliminate unpleasant odors.

9. Avoid eccentricities- remove those beaded curtains!

10. Accessories can make or break a room- avoid clutter.

11. Display photos that show your home during other seasons.

YOUR HOME'S FRONT DOOR AND PORCH

12. Create a welcoming spot in colour- flower pot, paint front door.

13. Invest in a new doormat.

14. Open curtains, have sparkling windows.

YOUR HOME'S ENTRY HALL

15. Create a dramatic focal point - e.g.., flowers, poinsettia, antiques.

16. Add spaciousness with a well placed mirror.

17. Improve floor appearance here, if nowhere else (except kitchen).

18. Clean out your coat closet.

19. Create the illusion of an entry hall if you have none-narrow table, open bookcase, railing, its own lighting area.

YOUR HOME'S LIVING ROOM AND FAMILY ROOM

20. Treat these rooms as if they were stage settings-games room suggests good family life, a guitar is warm, a dictionary, half finished crossword puzzle- let the buyer imagine living in your home.

21. Highlight your fireplace, decorating the mantle or above with picture.

22. Improve traffic flow in these rooms.

23. Draw attention to exposed beams or a cathedral ceiling.

24. Don't let the TV dominate or be the focal point of the room.

YOUR HOME'S DINING ROOM OR DINING AREA

25. Set the scene by setting the table and add a centerpiece.

26. Make a large dining room into, say, a dining room and a small library or add a desk.

27. Visually enlarge a small dining area-remove leaves, place against wall, remove extra side chairs or large pieces.

YOUR HOME'S KITCHEN

28. Use props to set the scene- open cookbook, basket of eggs, bunch of carrots on a cutting board, ceramic mixing bowl with whisk, etc.

29. Make it smell great- simmer Christmas brew, bake bread, bowl of lemons, fresh coffee, cinnamon sticks etc.

30. Expand your counter space, store small appliances, use a moveable cart.

31. Create more storage space-neat organized shelves, hanging pot rack.

32. Accent kitchen windows-plants, bird feeder outside window.

33. Make small kitchen appear larger-repaint white (walls recede), light curtains, mirror.

34. Highlight an eat-in area, set the table, fruit as a centerpiece.

YOUR HOME'S LAUNDRY ROOM

35. Make it cheerful and appealing.

36. Double duty- corner table or chair, sewing area, set the stage.

YOUR HOME'S STAIRWAYS

37. Make them safe- lighting, clutter-free, rail, carpet or runners secure?

38. Add visual interest- plant stand on landing, wallpaper can narrow.

39. Improve appearance of stair treads, clean or paint.

YOUR HOME'S BEDROOMS

40. Create a master bedroom "suite" effect ("Large is Better")- avoid busy patterns, small desk, chair with lamp, etc.

41. Tackle your closets, clear clutter, clear floor, organize shelves, smell.

42. Add storage boxes under the bed if you need more storage.

43. Depersonalize teenagers rooms- at your own risk!

YOUR HOME'S BATHROOMS

44. Create a look- plants, glass bowl of shells, pictures, fresh towels, magazine rack, etc.

45. Colour- grey and rose, all white- add some accent colours.

46. Invest in a new shower curtain and/or bath mat.

47. Improve (not replace) your floor covering, scrub and clean.

48. Put out fresh towels and soap.

49. Add a pretty dish of potpourri.

YOUR HOME'S BASEMENT

50. Make it as pleasant as possible- erase all signs of dampness or mildew.

51. Increase wattage of all bulbs to brighten up.

52. Set it up as a games room or teen room -Ping-Pong table, bright posters.

53. Highlight a workbench area, dust, clean and organize.

YOUR HOME'S DRIVEWAY AND GARAGE

54. Fix up driveways for first impression impact.

55. Enlarge and improve appearance of garage with lights, clear floor, organized shelves.

YOUR YARD

56. Avoid an overgrown, unkempt look- prune, cut lawn, edge carefully.

57. Mark property boundaries if fences or lines don't exist.

58. Use flowering plants to dress up your yard.

59. Draw attention to special trees- flowers at base to draw eye in.

60. Play up flat areas- badminton set or volleyball net.

61. Set up a backyard living/dining area- picnic table or rocking chairs.

62. Let your pool help sell your home- clean, open earlier or close later, if winter, have photo of pool in summer, draw up a pool information sheet including costs, upkeep time, installation date, pool size and pool items included with your home.

THESE ARE IDEAS #63 TO #79, READ THEM CAREFULLY.
THEY COULD BE KEY TO YOUR SALE!
WHEN YOUR HOME IS SHOWN

63. Be willing to show your home (practically) any time -yes it's an inconvenience to show your home at dinner time, but if the people buy your home, isn't it worth a re-heated dinner?

64. Have a family game plan for last minute showing- dust the table, put the dishes in the dishwasher, have kids clean their rooms, hide those damp pantyhose hanging on the shower rod - don't dare apologize about the condition of your home! (This will start buyers out on a negative)

65. Air out your home an hour before showings- smell better, wide open windows on a nice day with a gentle breeze ruffling your curtains.

66. Set your thermostat at a comfortable temperature -this is not the time to economize.

67. Light a fire in the fireplace to set the mood.

68. Turn on lights in each room- brightens up your home.

69. Put pets out and send children to play at the neighbours (if possible).

70. Keep out of sight when your home is being shown- buyers feel uncomfortable when you're around. The benefit is they can more easily imagine the house as their own when you're not around.

71. Never volunteer information (you won't be there if you follow the previous tip). Resist the urge to tell them how great it is to have a bus stop out front for your children, as you may learn later that the prospective buyers have no children, work the evening shift and love to sleep in late in the morning.

72. Don't be compelled to apologize for what you may see as one of your home's weaknesses, you may be moving because of the traffic noise of that newly built highway, yet the buyer may be moving in your area because of the very proximity of the highway for quick commuting. Let the salesperson do the job of selling.

OTHER IDEAS AND CONSIDERATIONS

73. Draw up a floor plan if you don't have one- it's a visual selling tool and they'll remember your home much better after they leave.

74. Some purchasers want to know what your heating, electricity, water and sewer costs are per month and also sometimes want to see warranties on appliances. Have this information available if asked.

75. Tell everyone you meet that your home is for sale- why keep it a secret, word of mouth is a strong selling aid.

76. Remain optimistic, it's easy to get discouraged after your home has been shown ten or twelve times, but you've done everything to make your home more salable, so don't take it personally. Keep in touch with me, I'll be continually updating you as to market activity. Remember someone is going to walk through your front door and fall head over heels in love with your home. After all, you did.

77. Don't be afraid to accept your first offer. If you've priced your home right, we may get an offer in the first week that is very close to the asking price. Don't panic and think your home is under priced, it means that the prospective buyers appreciate your home and want it badly.

78. Don't forget that every buyer wants to feel that he has got a "deal"- that is one reason you built bargaining leeway into your price in the first place.

79. Don't be afraid to call me any time with what may seem to be the smallest of questions. That's what I'm here for, to service you and get your home sold in the quickest time, with the least amount of inconvenience, and at the best price and terms for you.

If you follow most of the items in this list you will be sure to receive thousands of dollars more when you sell your home.

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Mark Argentino is a Professional Real Estate Agent and has his Professional Engineering degree. Mark works and resides in Mississauga Ontario. He specializes in helping people sell and buy homes in the Mississauga area. His website is the most authoritative source of real estate information when you are selling a home in Mississauga. You may read more articles, tips, reports, newsletters and in-depth real estate information, visit http://www.mississauga4sale.com

Source: http://www.articletrader.com ]]>