Future Planning and Its Importance in Property Purchase

House purchase involves a lot of planning and you need to start preparing well ahead of time. Our aim here will be to provide you an insight into various aspects you need to look into. We will also go through some of the important factors you must take into consideration while searching for a home.

House Purchase and Importance of Planning Ahead of Time

Start Saving Early: It is better to start saving early to have required funds for the down payment otherwise you may fall short of the required amount. In such situation you will have no option but to opt for a home loan which is more than 80% of home’s value. Thus it is necessary to start saving a few years ahead of the house purchase.

Emergency Funds: It is common for sundry expenditures to surface while you are moving into your new property. As for example, you will have to pay for utility fees, refreshments for people assisting you in the move and several other similar things which can make a large dent in your savings.

Thus you will have to create an emergency fund few months before the actual move so that you can pay for these miscellaneous expenses.

Evaluate the Property Carefully: You need to thoroughly go through the property during the house inspection along with your home inspector. It is also necessary to have a checklist of things you want to go through at the time of home inspection.

It would be important to spend more time in the house and check all the appliances to make sure everything is working as required. Like for example, there could be some problem with the water heater where it starts to percolate after running for about 15 minutes.

Thus during the property inspection you will have to let the heater run for 15-20 minutes to see if there is any problem or not. In case you rush then you will only come to know about the problem when you start using it on daily basis. If traced at the time of home inspection you may well ask the seller to fix it.

Ask Someone Else to Look at the House: It will be worth asking your friends to have a look at the property along with you since they may notice something which you are not able to spot. A friend who has recently purchased a property will be a great choice since he would know about the caveats to look out for.

Shop for a Home Loan: Apart from banks you can also approach credit unions for your home loan. Credit unions may well provide you the loan for lesser rate. Let us say you get half a point less from credit union as compared to what banks are offering.

In such situation you would be saving about 23k on a loan of 200k over a period of thirty years. Thus over time it will provide you considerable saving.

As a final note we will say that house purchase is not something you think of today and finalize tomorrow. You need to start planning at least a couple of years ahead and cover all aspects to get the house you want.

Ways to Find No Credit Check Apartment Rentals

Sometimes, as one Ford dealership puts it, life hits you right in the credit report. You need to rent an apartment, but your credit is just not that good. Or, you might be looking for your first apartment and you have not built up any credit yet. Relax, there is good news. You can still rent an apartment without credit or without a credit check. Read on to learn more.

One great place to try is a private rental. People who run small apartment complexes or who are renting a room in their home often don’t run credit checks as much as a larger complex owner who has to answer to an association or corporate board. It’s easy to find places like this in website or newspaper classified ads. You may also see signs out in front of houses for “Room for rent”. The downside is you have no national review site to check and see what people are saying about the location, so you’ll have to do some research on your own.

Have your deposit ready, and then some. You might be able to put down a larger than usual deposit in lieu of a credit check, depending on the apartment manager. This ties into demonstrating that you have enough income to be able to pay the rent each month. The best ratio is making three times the amount of the rent. You’ll have enough for rent, utilities, and insurance, and still have enough left over to not stress about it.

A co-signer can be very helpful as well. One thing your co-signer needs to be aware of is that should you be unable to pay, they are legally obligated to cover whatever the apartment lease requires. Your co-signer does not have to live at the apartment. It can be a relative or friend, but he or she just needs to be willing to cover the lease if you are no longer able to. This is often one of the best ways to obtain an apartment without any credit.

You can also call and talk to the apartment managers to see what their qualifications are for credit. Is your credit suffering from some high medical bills you are working on paying off? Or did you just put too much on credit cards and then declare bankruptcy? These are often viewed as two completely different matters and a manager might be more willing to overlook the medical bills for which you have a payment plan. It also shows that you are willing to be responsible about your money.

Then there is a surety bond. You will pay a fee of about 10% to 15% of the amount of the security deposit to a bond company who in turn pays your deposit in full. At the end of the lease or when you move, you will not receive this amount back like you would a deposit you had paid directly.

Finally, there is asking for a short term lease up front to demonstrate that you have all the right factors to be a great tenant. You both can always renew later if things work out well.

Property Inspection Tips: A Handy Checklist

The detailed inspection of the property you are planning to purchase, is an essential step before entering into an agreement with the seller. Sellers usually try to hide minor damages, so that they can later pin them on the buyer and avoid the repair costs. Checking the property for any hidden damage or structural issues is always a good idea so that you don’t have to pay for the repair of these complications. Here’s what you should look into:

1- Check For Water Leakages

One of the basic damages that go unnoticed during casual checks are the small gaps that later go on to cause water leakages. Another unnoticed issue is water seepage, which causes damp walls. This problem is more prevalent in apartment buildings, where water seepage in an apartment, causes damp walls in the room directly below the faulty water seepage.

2- Lookout For Cracks

Thorough inspection of walls and ceilings for possible cracks is very essential. Usually, what looks like just a minor line on the wall turns into something substantial with time. So instead of running through the house inspection, it’s better to take your time and closely inspect every area to detect cracks.

3- Inspect The Plumbing

Proper plumbing is the foundation of a well-built house. Without this, the water supply and drainage pipes become faulty and can cause massive damages for you. A comprehensive check of the plumbing system can be done by checking the condition of the pipe material used for draining, waste, and venting purposes.

4- Test Window And Door Fittings

Another important aspect of the property inspection process is the absolute and thorough checking of the window and door fittings. A loose window or door is an invitation for accidents and should be properly checked to avoid mishaps. Also the setting-in of windows in their frames must be ensured, so that they can close easily during rains and sandstorms.

5- Measure Room Size

Before finalising the property, measure the size of each room on your own and map out how much space you will require for placing furniture and other items. Estimating just by looking may not be a good idea, as later you will realise that the room is actually smaller than what you had anticipated.

6- Ensure Proper Ventilation

Passage of fresh air through the house is of utmost importance for the health of the inhabitants. Ensure that proper ventilation vents are provided in every room for brisk air, and that the rooms have good scope of receiving sunlight. Also, if you are installing a central AC, make sure that all the wires and connections are safe.

Duties Involved in Apartment Property Management

Many apartment buildings are managed by a designated manager, who is responsible for the day-to-day running of the apartment and is often the first port of call should you happen to be experiencing an issue of some description.

However, their job descriptions extends far beyond simply handling the tenants of the building. The following are just a few of the tasks that an apartment property manager will be required to handle.

Mediation

It is not uncommon for disputes to arise between different members of the apartment complex and it often falls down to the apartment manager to mediate the discussions and attempt to find a resolution that is suitable for everyone.

In some cases this may be fairly simple, such as when one tenant is being too noisy and thus disturbing the peace. However, other disputes can be much more complication so the manager must know how to handle such issues peacefully and to the benefit of both the building and its tenants.

Maintenance

The apartment manager is directly responsible for any maintenance issues in the building. While the work itself may be carried out by a janitor or other contractors, it is the manager that has the responsibility to ensure that everything is running as it should be. They will also need to be able to determine if any reported issues can be handled internally, or if somebody needs to be called in to help.

As such, they must make themselves available to the tenants so that they can report any issues, in addition to maintaining relationships with contractors and other personnel who will be able to come out and rectify the issue at a reasonable price.

Collecting Rent

In most cases the rent payments are made directly to the building’s owners or through an agent acting on their behalf. However, if a payment is overdue for whatever reason it will often be the building’s manager that needs to speak to the tenant in question and arrange for the payment to be made.

Much like with mediation, this often requires a delicate touch. However, the apartment manager must also have the authority to act if the tenant is refusing to pay and must also know how to best make use of this power to ensure that they get what they need from the tenant without disrupting the lives of other occupants of the building.

Signing Leases

In some cases, though not all, the apartment manager will also be responsible for signing leases and showing prospective tenants around the building. This means that they need to know their building inside and out so that they can ensure they provide accurate information while also keeping the best interests of the building owners in mind.

>A solid mind for marketing helps here, as it can be used to accentuate the positives of the building while downplaying some of the negatives. In short, they will need to be able to sell the building to the tenant and convince them that it is a place that is worthy of being called their home.

Ten Reasons Why Property Proposals Need Permission

1. Lenders Permission To Rent A Buy to Let Property. – Inherently this includes permission to rent – or does it?

a. Even this type of mortgage will exclude certain tenancies.

b. E.g. it is likely that a landlord’s family-members are excluded from occupation.

c. Certain tenant genres may also be excluded such as knowingly letting to benefit recipients.

d. Therefore, it is important to always establish whether there is either implied or actual permission.

e. A former landlord-home will probably require lender-permission to rent.

f. Lenders are likely to require any tenancy to be an AST and contra wise may exclude common law and commercial tenancies.

g. Lenders’ permission to allow alterations and extensions: probably requires lender consent to build a property extension.

h. Some lenders restrict the number of tenants to say four tenants.

i. So if you extend your four-bed apartment to five bedrooms, your lender might contend that your mortgage product does not permit renting to five tenants.

j. In such circumstances the borrower must do one of three things:

i. Swap mortgage products to enable an additional tenant. However, such a swap is likely to come with a lower loan-to-value and a higher interest rate.

ii. Switch mortgage lenders. This may not be as easy as it sounds in a depressed market.

iii. The only remaining option might be to do nothing. Certainly do not waste money renovating if this will breach the terms of the mortgage agreement.

k. Lenders might require confirmation that borrowers have appropriate permissions before in turn permitting renovations

l. Lenders might demand that a damp basement must be ‘tanked’ within say three months of granting a mortgage, meantime withholding a retention. But if the property is a listed building the local authority may not permit it. So unwittingly, conflicts can arise for the unwary.

2. Building Control Approval – Permission is likely required prior to conducting structural alterations.

a. Any structural alterations, even replacing a bathroom may require ‘Part-P’ permission to fit an electric shower unit. Likewise other ‘wet’or ‘notifiable locations’.

3. Planning Permission – This may be required if it is outside ‘Permitted Development’, e.g. a large extension requires permission, whereas say a small porch will not – unless it is a listed building or in a conservation area when normal permitted development requires written permission anyway). After 4 to 10 years following unpermitted works, any required permission is deemed granted and no longer an offence.

a. If the Property is a ‘Listed Building’, ‘Planning Permission’ is required.

b. If the property is in a ‘Conservation Area’ yet again Planning Permission is required to lop. top or fell a tree.

c. A house in an area designated as covered by Article 4 requires planning permission under the Town and Country Planning Acts and Orders.

4. Ex Local Authority Homes – If the property was formerly owned by a local authority then there is likely to be a restrictive covenant in the deeds preventing alterations to the external appearance – without the local Council Estates Department’s permission. So even if a small porch would e within permitted development permission may still be required.

5. Mandatory Licensable Property – A property is in England or Wales and comprising three or more storeys and 5 or more unrelated tenants is classed as a large HMO and as such requires LA approval to be let as a Mandatory Licensed Property.

6. Discretionary Licensable Properties – This also require permission to let and this covers Additional and Selective Licensing. See previous articles by the author on this topic.

7. Sui Generis – A property is in England or Wales and comprising seven or more unrelated tenants is classed as a large HMO and is in also a category of its own called ‘Sui Generis’. As such this requires LA approval to rent regardless of the number of storeys.

8. An Empty Property pending letting also requires permission from any home insurer if vacant longer than a set period – normally 30 days.

9. A Landlord’s or Owner’s Permission is required to do anything stipulated within a tenancy agreement which requires the landlord’s permission: permitting pets, subletting as an inferior landlord and or tenant, changing colour / decor, etc. Similarly, proposed works at or near a neighbouring property-boundary (vertical – walls, or horizontal floors and ceilings if flats) will require notice and Party Wall Act (1996) consent or arbitration with any adjacent owner.

10. Permission to Act subject to Declaring Personal Interests. Failure to declare a personal interest can result in a breach of Consumer Protection Regulations. If there is a presumption of a personal interest this can create a conflict of interest. Once the personal interest is declared to the other party and that party agrees, or permits the act, then there is no conflict. E.g a landlord must be told that a letting agent or staff member is related to the new tenant or to a service provider to avoid a presumption of impropriety. The tenant might only be paying half the true value of the rent or the contractor may not be competitive both to the detriment of the landlord. Once informed the landlord is likely to scrutinise such a deal to ensure correctness before granting permission to rent to the relative or agree to works by a relative.

Find the Best Ways to Settle Your Property Deal

More often than not individuals think that it’s genuinely difficult to manage properties. It can be household or business property; however at whatever point you are going to offer or purchase one, you may think that its troublesome for different reasons. In such conditions individuals like to have some expert help that can recommend them the right way of managing real estate. Looking for the best property settlement administration for your property offering procedure can be less demanding these days with the assistance of the web. It allows you to figure out the opportune spot where you can acquire the best administration.

On the other hand, there are some sure focuses that one must remember while searching for the expert land settlement operators. When you begin your pursuit, you can locate a not insignificant rundown of organizations that give such administrations, however it is evident that not every one of them are similarly experienced and adequate for your occupation.

While looking for the right agents, you must remember some points.

• The notoriety of the firm: The property settlement organization must have a decent notoriety in the business as an administration supplier. You ought to check the quality and dependability of the organization from their current or past customers. This could help you to see how great they can be for your property managing

• The experience of the group: Since managing properties is an intense undertaking, the group you employ must have fitting knowledge in this certain field. They must be mindful of the most recent reports with respect to property settlement and offer you the best service.

• The capacity of comprehension that you require: This is profoundly needed for any administration supplier who offers benefits that are absolutely customer situated. They must comprehend what precisely you need and how to offer you the right help.

• The capacity to offer customized administrations: The supplier of such administrations ought to have the capacity to offer customized administrations for different customers. Diverse customers would accompany a few sorts of issues while managing properties. The organization must be ready to offer them benefits that are singularly intended for them and satisfy their need

• Professional state of mind: The group you enlist must handle the whole situation with tact. They must keep the correct record of the considerable number of dealings and keep you updated about each and every point of interest of the same. They must keep steady correspondence with you as a customer and know your necessities.

• A wide cluster of administrations: As a supplier of property settlement administrations, they must offer a wide exhibit of help to their customers. It must be a one stop answer for all the necessity that is identified with any sort of property arrangements.

• Trustworthy and effective: Lastly; the group must be dependable and productive towards their occupation. Since, managing properties is a high-risk work, they must be faithful to their customers and perform their undertakings with proficiency

Keeping all these abovementioned point in mind will definitely help you to choose the right property settlement agent for your real estate deal.

Real Estate Property Management

One of the biggest decisions you will make as a landlord is whether you should hire a property management company or not. Many landlords manage properties on their own or with the help of an employee, such as a resident manager. Sometimes it happens that landlords need more help when property issues are complicated. This is when landlords need to seek help of real estate property management companies.

Real estate property management companies can be a huge asset to your company but they don’t come cheap. They deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues with the help of All Professional Remodeling Group, LLC, responding to tenant complaints, and even pursuing evictions.. A good property management company brings its know-how and experience to your property and gives you the peace of mind that comes with knowing your investment is in good hands.

A real estate property management company is an independent contractor and this helps you avoid the hassles of being an employer. Along with the benefits, hiring a real estate property management company also comes with a drawback of being an expensive one. If you are living far from your rental property, it will be difficult for you to handle property issues from afar. Most of the landlords look forward to finding good tenants to maintain their property in good and attractive condition.

On the contrary, there are few landlords who look at their property purely as an investment and are not interested in lending them to any tenants. In this case, the best option is to hire a real estate property management to handle the property and manage the related issues. Even if you enjoy hands-on management, you will run out of time to concentrate on the growth of your business which will put you in a situation to hire help for your property. Hiring help of a real estate property management company is an attractive option if you can afford the fees for the same. While interviewing management companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue.

Trying to choose a property agent can be daunting, after all you need someone with experience, energy and a passion to succeed! Perhaps even more importantly, someone who will talk to you and honestly discuss how the real estate industry can work successfully for you. In real estate, it’s about service – and that’s what gets results!

Various Ways to Lower Your Mortgage Payment

New home owners are often a bit optimistic when they take on a mortgage and it’s not hard to see why: they fall in love with a property that might seem just out of reach, but they are convinced that a bit of budget-trimming and future promotions will make the property more affordable. Life doesn’t always go according to plans and unforeseen expenses can quickly turn an affordable mortgage payment into a crushing burden.

There are, however, a few ways to lower your mortgage payment:

Get a new assessment of your property

It’s possible your property’s value has decreased. If you feel your assessment isn’t accurate, you can file a petition to have it re-evaluated. A lower evaluation can result in substantial savings.

Have you paid off more than 20% of the loan?

If you’ve put more than 20% equity down on your mortgage, then you can petition your lender to cancel your private mortgage insurance (also known as PMI). This could help you get rid of the extra monthly expense of private mortgage insurance.

Apply for a loan modification

One way to save money on your monthly repayments is to prove you are having financial difficulties or hardships. In this case, you can apply for a loan modification. This process will lower your balance and make your monthly mortgage repayments more affordable.

Refinancing your mortgage

In the first few years, most of your mortgage repayment will go to interest (only the last few years goes to the principal of your loan). The effect of the interest you pay on your mortgage is more significant and important during the first few years of repayment, so refinancing your mortgage will depend on how long you have been paying the mortgage and what kind of interest you can get elsewhere.

There are refinancing fees associated with the process, but it will enable you to take advantage of significant lower rates if you qualify.

In 2011, Canadian Government announced they will be changing the mortgage refinancing rules. The Government has effectively dropped the refinancing value from 90% to 85% (of the insurable value). This means Canadian citizens can’t dip into more than 80% of their home’s equity.

Government made this 5% change in order to combat one of the big concerns in Canada’s property market, which is the amount of household debt which Canadians are carrying. In 2011, Canada’s household debt ratio (which is the ratio of income vs. expenses) reached a staggering 148%, which is very high. For the first time in history, Canada’s household debt ratio went beyond the household debt ratio of Americans. It is for this reason Canada’s government stepped in.

The Mortgage Hunter specializes in solving mortgage problems. We offer a complete range of mortgage solutions and services including credit recovery, mortgage arrears, foreclosures, maximum rate guarantees, new construction financing, purchase / refinance options, cash back options, discounted rates from major lenders, pre equity financing, payment frequency, no fees to qualified borrowers and first time home buyers programs.

Here Are The Services You Need From Your Estate Agent

Becoming a landlord for the first time can be both exciting and daunting, with the promise of a passive source of income being appealing yet complex. Bearing the landlord status brings many benefits but also unique problems of its own, therefore choosing a good estate agent is of paramount importance to help things go as smoothly as possible.

As many landlords will know, the number of excellent British universities and other educational institutions nearby – including the University of Warwick, Warwickshire College and Coventry University – has meant there is a huge student population looking to rent here, making it a very profitable endeavour.

The first thing you need to ask for from your choice of estate agents- especially if you are a first time landlord – is a full management service that will deal with everything concerning your property. This can be especially beneficial when it comes to a high tenant turnover rate, as is common with student tenants.

Key services that are especially needed in the case of students include the full maintenance of the property, collection of rent and deposits, and arranging and accompanying viewings. Although these are necessary for all potential tenants, if you rent to students you can expect these activities to be necessary on a much more frequent basis.

Estate agents will make sure they do all the hard work for the landlord for a reasonable fee – making sure that student tenants are responsible for damage to the property, collecting rent and deposits on a regular basis, and organizing property viewings each and every year as the new intake of students arrives.

There are also other very useful services that you can benefit from as a landlord in the area, which are usually included in a full property management service. One of these is the selection and referencing of tenants using the Ends Leigh referencing system; instead of vetting prospective tenants yourself, your estate agents will do the hard work for you.

This is relevant for all tenants – students or otherwise – as it can help weed out those that have been bad tenants in previous properties and are therefore not likely to be good candidates for you. Another service that can be provided is a full inventory compilation, which will make sure that everything is as it should be when a tenancy comes to an end.

Again, this is especially useful when dealing with student tenants, whose tenancy agreements often last only a year before a new set of student tenants arrive. Carrying out an inventory check is therefore something that you or your estate agents need to do on a regular basis.

You should also expect that your choice of estate agents takes care of all the legal aspects regarding the rental of your property. This includes the drafting and signing of contracts to your needs and requirements. They will also be responsible for the marketing of the property, and it is worth asking how they intend to do this.

Last but not least, your choice of estate agents should take care of payments of rent into your account, providing you also with any relevant statements so you can better keep track of your finances and the income that you are getting from the property.

Whether you opt for a full management service or just the basics, finding a good estate agent that can deliver a range of essential services is important for any first time landlord. Consider what your needs are in relation to the type of tenants you will be marketing to, and then choose a service that can expertly meet these needs.

Tara and Co is an estate and letting agency with properties for sale and to let in Leamington Spa, Warwick, Keni lworth and surrounding areas. Tara and Co are the “straight talking property people”, aiming to readjust people’s perception of estate agents by offering a straightforward and jargon free service. Based in Old Town Leamington Spa for over 40 years, Tara and Co has also covered the Warwick and Kenilworth areas throughout that time. Tara and Co is big on technology, and utilities the latest software to provide their clients with online access to accounts 24/7, electronic contract signing and online marketing. Tara and Co has something to offer everyone – whether they are a landlord, tenant or owner occupier.