buy-an-apartment

Buy or not to buy? Thousands of tenants are faced with the issue when their homes are converted into condominiums. One in three would like to buy, two out of three say no, according to a survey.

If those living in your house formed a housing association and were offered to buy the property, would you like to buy your apartment? This question was asked for approximately 1,000 members of the Tenant Association.

Answers vary with age. Half of those who are 35 years or younger would like to buy their apartment, but only seventh senior citizens. It also depends on where you live.

Metropolitan people are more positive than those in smaller towns. Those who rent private wards are more incubator than those living in municipal housing companies.

The issue is becoming more and more current. Only in the metropolitan areas, over 52,000 tenants have been homeowners in the 21st century and many new transformations are under way.

Profitability is also the main reason for those who want to buy their apartments. But such reasons do not matter to many. Many say it’s a good investment, but if you do not want to move you will not win and we do not live here to make money.

The second heaviest reason in the survey, that you get more influence over the accommodation, is also not so important to them. Even as a tenant you can do much for the interior if you want – and you do not have to take care of the property. “We do not have much contact with the neighbors, and I do not feel attracted to weekend weekends and to go out and hang out,” said one person in the survey.

 

– Are there any people who think that they are going to make a lot of themselves, or will they buy the services?

There are many question marks. Many are doubtful, but not sure that they are saying no.

“If the price is good and people know what they’re talking about, maybe we’ll buy,” says one tenant.

“You buy not only your apartment, but your and your neighbors’ house, along with them. The shared responsibility can imply both opportunities and problems, “says consumer counselor Margaret Shapiro.

She is responsible for housing issues in a new condo association, where many rental rights have been converted into condominiums. She has had contact with many who are reluctant to buy or have had problems after a conversion.

 

Margaret Shapiro thinks it is important not just to think about the economy, but also on what neighbors one has.

– Is there any competence within the association to own and manage a house? A lot of members are required: to be able to run a board, to have legal, financial, management, procurement and so on. And you will have time and will and be able to get along.

One should ask if you want to own your house and basically start a management company with your neighbors.

For example, if the roof needs renovation, do you have the same view of when and how to do it?

 

– A common conflict of interest is that the younger think more short-term. They want to make money and move on, while the elderly want to invest more in the long run. Therefore, it is important to read all information, attend all meetings and ask questions.

Those who work for a conversion may not have the same management ideas as you. The bank can help review the association and your finances. “You need a different economic buffer than if you rent,” says Margaret Shapiro.

 

Facts: Think about before you do buy

 

  • Do I want to own and manage a property with my neighbors?
  • Should major renovations, tribal swaps or similar be needed, and if so, can I stay in the meantime or arrange an evacuation apartment myself?
  • Do I manage the economy? Bring all the documentation to the bank, ask for an assessment and cost of living.
  • Do I have an economic buffer, maybe $ 20,000, if anything in the apartment breaks?
  • Can I manage to stay if I get sick or unemployed?
  • Will the apartment be sold if I want to move
  • Do I want to be a tenant of my neighbors if I do not buy?

Most common reasons not to buy:

  • Do not get loan 3%
  • Does not like the apartment 5%
  • Does not like the situation 5%
  • Do not want for ideological reasons 10%
  • Can not afford 23%
  • It is more comfortable to rent 34%
  • Other reasons 19%

The most common reasons to want to buy:

  • Do not want to live with the neighbors 5%
  • Children and grandchildren inherit the residence 6%
  • Get more influence over the accommodation 33%
  • More profitable to own 46%
  • Other reasons 11%
personal loans for home improvement

A homeowner’s first instinct is to get a home equity loan or credit when they need money for a project home improvement. But in many cases, a personal loan, despite its higher interest rate, is a better choice.

With a personal loan, you know your total borrowing costs at the time you pay for the loan, and you borrow a fixed amount for a certain number of years with a fixed interest rate.

With a HELOC, you borrow different sums at different times. The interest rate is changed with market terms. The initial payments can only interest or interest plus a little more important, while later payments are fully depreciated interest and amortization. With so many variables, there is no way to know your total loan costs in advance.

 

A home equity loan solves uncertainty problems, yet has disadvantages compared to a personal loan.

Here are 5 reasons to consider a personal loan for your next project home improvement.

1. Your home is less risky

If you can not pay back your home equity loan or HELOC, your lender can eventually exclude because these loans are secured through your home. The efforts are lower with an unsecured personal loan.

While unsecured creditors can place a detention center against your home if you do not pay them – something that many consumers are unaware of – the lien usually only makes selling or refinancing more difficult. It will not be you kicked to the sidewalk as a foreclosure, unless the creditor receives an order from the court to force the sale of your home, which is unlikely.

“The thing to keep in mind is that real estate loans are usually non-mortgage loans,” says Joe Parsons, lender with PFS Financing in Dublin, California, and author of the Mortgage Insider blog. “This means that in most cases, the lender can only look at the property as collateral for the debt. With a personal loan, the lender can continue the borrower’s other assets and income in case of default. “

In other words, negligent on all loans is never a good option. However, an unsecured personal loan can be a lower risk option if you’re financially stable but faced with uncertainty, as any job termination or child education that can not be covered by scholarships.

 

2. You pay less in interest

An unsecured personal loan is the repayment period is usually 3 to 7 years. An HELOC usually has a 10-year draw period, plus a 20-year repayment period, and home equity loan that gives you 20 to 30 years to pay off. You pay significantly more interest with a HELOC or home equity loan despite their lower prices.

Let’s say you want to borrow 30,000 usd. With the personal loan, you get an interest rate of 10.5% and you choose to repay over 5 years. Your total interest expense would be $ 8,689.

Borrow the same amount with a home equity loan and your interest rate can be 5.25%. Over 20 years, you pay $ 18,517 in interest. An HELOC can start at 4.75 percent, but they will probably cost more than home equity loans over time, as interest rates are close to record low levels and are likely to increase.

 

3. Keep the borrowing in check

A personal loan does not tempt you to borrow more than you need.

Unlike an HELOC, which allows you to hold the loan for the entire 10-year draw period, a personal loan amount is fixed when your loan is approved.

A home equity loan also locks in your loan amount, but both home equity loans and HELOCs often require you to claim it at least $ 10,000 upon closing. It may also be the minimum for further pulling on a HELOC.

With a personal loan, the least you need to borrow is less. That makes them a great option for lower cost home upgrades like new floors or heating and air conditioning equipment. Minimum varies between different lenders, but the PNC Bank and Lending Club, for example, offers unsecured loans personal loans for as little as $ 1000. Online lender in Good lets you borrow as little as $ 500.

Larger or longer term personal loans sometimes have the minimum borrowing requirements similar to those in a home equity loan and HELOCs, however, then shop around and read the fine print.

 

4. Home equity is irrelevant

Underwater on your loan? Have just bought your house? You will not be able to get a home equity loan or HELOC because you do not have enough equity.

These loans usually require you to have 10% to 20% of equity remaining after loan. If your home is worth $ 300,000 and you owed $ 270,000, you only have 10% equity and you will not qualify.

But as long as you have not maxed out your debt-to-speech and your credit is good, you can still get a loan without collateral personal loans. Not only that, you can get a rate that is comparable home equity loan or HELOC prices.

For example, LightStream, a division of SunTrust Bank, offers an unsecured personal home loan improvement with prices as low as 4.99% for 24 and 36 months for $ 10,000 to $ 100,00

 

5. You’ll pay less in fees

Personal loans usually have call origination fees, but they do not have application fees, assessments and fees, annual fees, points, title search and department insurance fees, mortgage preparation and fees for notification, or early repayment fees like home equity loans and HELOCs usually do.

Many home equity lenders refrain from any or all of these fees. However, if you pay off your loan within the first 2 or 3 years, the lender will introduce an early repayment fee.Sometimes it’s only a few hundred dollars, but other times it includes all fees originally from, and these can total thousands of dollars.

Under normal circumstances, you probably will not pay off your loan early, but if you move or refinancing is an option, a personal loan can save you a lot in fees.

home selling tips

I Plan To Sell My House. What Should I Do?

The first step is to choose the real estate agent (s) you want to get in touch with. Then they should make a valuation of the home you are going to sell. Once you’ve met the broker / broker you decide who to choose.

What Does Choose A Value Of My House?

If you are to sell your home, the valuation is usually included in the intermediary assignment. If, on the other hand, you need a valuation for another purpose, usually a cost varies from broker to broker.

How Long Time Does It Sell My House?

How long it takes to sell a home can vary widely. It depends on what you are selling and where your country is located. Consult your local broker in your area. After selecting a broker, it does not take many days before the sales process can commence. However, the broker needs time to complete the work required before the home can be advertised.

What Should I Pay In Fees?

Brokers usually work on commission. This means that if the broker does not sell your property, the broker will not pay for the work being completed. Far from all homes is sold why the broker always has to count on this in his work.

What the brokerage cost costs depends on which broker you hire and in which area you live. Ask what’s included in the brokerage service and compare it to the price. Often it is possible to negotiate the brokerage fee.

Where Should I Advertise The City?

The broker you choose to hire knows what’s best for you in your area and where you find your customers. Therefore, listen to the broker’s proposal and, if you have any, have your own wishes.

When the broker delivers a home, best results are achieved if the broker and the seller have a good cooperation and open dialogue.

I Have Written An Agreement With A Property Matter, How Lender Is Applicable?

A mediation assignment usually for three months with exclusive rights and then continuing until further notice, often with ten days’ mutual notice period.

The exclusive right means that the broker is commissioned if the property is sold under exclusive rights, even if it is not sold to a speculator specified by the broker. Solvency is also beneficial to the seller as well: because the broker knows a commission always expires if the property is sold during exclusive rights, he or she dares to deduct more marketing resources. However, you are never obliged to sell the property.

Can I Show The Building Without Furniture?

There is no requirement that a property to be sold must be furnished. It depends a bit on the properties of the property if it is to the advantage or disadvantage of the accommodation. Discuss this with the broker and you will find the one that suits you best.

Do I Must Show Images On My Home When I Should Sell My House?

There is no compulsion that you have to show pictures on the property when sold. But images are often important to attract speculators. Usually more speculators are attracted to the view and the opportunity to get a higher purchase price increases.

I Do Not Want To Ask It As My Home, Must I Do It?

Having an open view is no requirement. You can also only have private views, where only one or a few speculators can access at a time. Discuss this with your broker and you will find a solution for your home. You can also have an open view but with a pre-notification. Then the real estate agent and the seller know before seeing what speculators are coming.

The Maker Would Have A Money Set In A Client Summary, Is It Safe?

It is common for the buyer to pay a deposit of ten percent. If the purchase contract is not definitively binding already when the contract is signed, it may be subject to a so-called inspection clause or that the buyer is approved as a member of the housing association, the broker will recommend that the deposit be deposited at the broker’s client funds account.

In a client agent account, only customers’ money is available. This means that the money is protected if the broker is to be bankrupt or subjected to foreclosure.

I Have A Maker That Does Not Listen To Sell My House, Now, I Want To Change Maker, But Do Not Risk To Pay Dubbla Provisions. How Should I Do?

Submit the assignment with your real estate agent and request a confirmation of termination. When the broker submits a confirmation, he must also submit a speculative list. The list is a list that customers as the broker showed the housing for and which the broker considers to be entitled to commission if any of these would buy the property.

Leave the speculator list to your new broker and explain that you had a previous broker. Your new real estate agent is obliged to act in accordance with good estate brokerage so that the risk of double commissions is eliminated.

home-values

There may be various reasons why you want to get your home valued. Sales, major renovations, divorce, inheritance and housing are some examples. In a valuation, the real estate agent’s most important tool is knowledge of the current area.

 

The advantage of letting a real estate agent evaluate the property is that he has good knowledge of how the market is currently performing. In addition, the broker often has a close relationship with the buyers in the area. Valuation for a sale also discusses value enhancing measures, which are an advantage for marketing to attract the right buyer. A common example of value-increasing factor is styling both interior and exterior. It is important to draw attention to the housing and that the buyer gets the right feeling.

SALES STATISTICS

In order to make a thorough valuation, the real estate agent often uses statistics of sales in the current area. In real estate broker terms, you talk about local price increases and comparative items. The real estate broker does is to investigate what has been sold for a certain amount of time in the same area.

One common way to do this is in a system of pricing systems where all sales in Sweden are collected. Here the real estate agent can search different areas and sort by year of construction, type code, final price, square meter etc. It is important to assume that the property is located. For example, a residential area close to the sea with a high probability of being sold for more than one similar property located inland.

VALUATION SERVICE

The real estate broker can also use a valuation service to obtain a statistical valuation. This method is based on the current address to be valued.

The real estate agent’s own knowledge and assessment is of paramount importance for the valuation because the service is largely based on how it is seen in a certain area, purely statistically, but not taking into account factors such as views, high ceilings, tiled stove and renovation. The real estate broker thus combines his expertise with statistics to arrive at an estimated value.