Anirban Bhattacharya asked:




Sometimes, an individual/proprietor is not able pay the amount overdue against his name on account of home, for no matter whatever reason – whether it is loss of job, health, or death or if the home is taken over by a finance or mortgage company. Under such circumstances, once the legal formalities are over, the propriety or the house is termed as foreclosure. When finance company or mortgage firm or the bank has the possession, they more than often tend to place the home in foreclosure homes listing.

The intention of the foreclosure homes listing is to sell the home/ propriety as promptly as possible. A foreclosed home is more than often obtainable at a great deal lesser cost than its actual market value. The banks or mortgage firms, who are in possession of these distressed properties, wish to dispose of them as soon as possible. With the intention of drawing more and more customers, they cut down the prices of these properties to a great extent.

These kinds of home make available an exceptional opportunity to bidders for houses and real estate investors by presenting to them a prospect to acquire properties for sale for far less than its standard market value.

Fundamental Elements of Foreclosed Homes Listing

If you want to buy foreclosures property, you must understand the listings. A foreclosed homes listing compiles research gathered on real estate markets in every state and then create a comprehensive, searchable database of foreclosures for sale. A number of the essential basics listed out in an online foreclosure listing include:



Addresses of such available properties



Detailed description about their physical condition



Comprehensive account of the neighborhood area



Estimated price



Date of auction



Contact person or real estate agent



Status of foreclosure



A virtual view of the property so that the potential bidders can see a video of the available properties.



While buying foreclosed property, you are required to be cautious, because a lot of of the laws that guard or defend your rights in an otherwise conventional real estate deal may not be relevant to a foreclosed property. So once must be extra careful.

DAVID TAN asked:




The legal way for a foreigner to own real estate in Thailand is to buy a condominium unit(s) (“Condo Unit”). This was proposed in my last article on foreign land ownership. In Bangkok, Condo Unit purchases are now considered trendy among the younger generation of Thais as Condominiums are conveniently located in the inner city area and it is more economical to commute.

TIP

Whether you are going to buy a Condo Unit to reside or for investment purposes, I would like to walk you through the following due diligence steps:

(1) If you can narrow down your choices of Condo Units to 1 or 2 Condo Units, a physical inspection must be conducted by an expert or civil engineer on the Condo Unit and the condominium building. Are they as according to the promises made by the seller ? Checks should be conducted for water leakage in the Condo Unit, proper and safe electricity supply, adequate car parking spaces allocated, fire exits, correct building materials used.

(2) What is payable by an owner of the Condo Unit for up keeping e.g. common facilities fees, water charges, electricity charges. Who should they be paid to and how much are they? Find these out from the owner of the Condo Unit.

(3) If (1) and (2) above are satisfactory to you, request from the owner of the Condo Unit a copy of the Condo Unit Title Deed. Take this to the local district or Amphur Land Office and counter check with the original Title Deed kept there on: (a) Who is the owner of the Condo Unit ? This owner should be the person whom you are dealing with and signing the contract to sell you the Condo Unit. If the owner is a company limited, who can sign on behalf of this company ? Does the company limited have enough capital to complete building the condominium ? The answers to these questions can be obtained from the incorporation records of the company limited at the Ministry of Commerce; (b) Is the condominium building registered at the Land Office ?; and (c) Does the original Title Deed reveal any registered encumbrances, lease, mortgage or charges ?

(4) Have a lawyer peruse the conditions of the Reservation Contract or To Sell and To Buy Condo Unit Contract prior to signing it. Legally speaking, this Contract does not create any property rights for you yet because the Condo Unit ownership title will transfer to you at a later date. This Contract is binding only on the promises of both the seller and you that ownership title transfer and sale of Condo Unit will take place at the agreed upon later date. However, the risk exposure to you here is that, at the signing of this Contract, you are usually requested to place a deposit with the seller. If the seller does not sell and transfer ownership title of the Condo Unit to you at the agreed date, you will have to claim the seller in court for breach of Contract to get the deposit back. As a result, I do not recommend the signing of this type of Contract. You should make a 1 time payment of the whole purchase price at the sale and upon ownership title transfer of the Condo Unit to you. Alternatively, you could arrange for a neutral escrow agent to hold your money and hold the original Title Deed (Note: Under the new Escrow Business Law, effective on May 19, 2008, an authorized financial institution or commercial bank can provide escrow agent services).

(5) Clarify with the owner who is responsible for the ownership title transfer fee, income tax and specific business tax or stamp duties payable at the Land Office on the day of ownership title transfer. Unless agreed otherwise between the owner and you, you are only legally responsible for 50% of the ownership title transfer fee. Please note that the amounts payable here can be calculated for you by an official at the Land Office.

(6) Make sure that the owner have obtained from the Condominium Juristic Office the following: (a) A letter verifying that foreigners have ownership in condominium units not exceeding 49% of the total space of all units in the condominium building; and (b) A letter verifying that the owner has no outstanding debts owing to the Office.

(7) You have obtained the required bank document to verify that the purchase price for buying the Condo Unit was remitted into Thailand.

** Written by David Tan. David is a Lecturer of Business Law at Asian University and author of the book “A Primer of Thai Business Law (Second Edition)”, available online at www.chulabook.com . In Bangkok, the book is available at all Kinokuniya and Asiabooks bookstores. Any questions or comments should be sent to Business Legal Advisory Services at: blas.inter@yahoo.com

 

Mark G. Estates asked:




Whenever you buy or sell real estate, you may be like millions of other people out there, in thinking that you don’t need a real estate agent. Most people who buy or sell homes, generally think that a real estate agent is a waste of money. Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.

What most people aren’t aware of, is the fact that real estate agents are normally paid by the seller, not by the buyer. As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself. The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case. When you are interviewing agents, make certain to ask about any type of fees as well.

A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller. If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down. This way, you can count on your agent to be there when you need him the most – especially if you don’t have a down payment.

If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services. Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams.

You can also make a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other. Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.

When you interview a real estate agent, make sure that you have the agent explain his fees. This way, you’ll know exactly how much he will be getting from the purchase. You should also find out how much experience he has in the field, and how long he has been working with real estate. You can also ask about sample contracts as well. If you are buying a home, you should make sure that the agent works with buyers. If you happen to be selling your home, then you’ll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best to choose, as they will have more experience than agents who work with both buyers and sellers.

Find a real estate agent is an easy task – providing you know what to look for. If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want. You should always be careful when you choose, and never rush the process. Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate. When you make that final decision, you should always choose an agent who has your best interest in mind – and isn’t just after the money.

Gerald Mason asked:




When you have found a house in a desirable location that looks interesting, look it over carefully for evidence of quality construction or the lack of quality.

Does the house have the general appearance of being in good shape?

Do the doors swing freely, and do they fit the openings? A poor fit of the doors often indicates the foundation is settling.

Do the windows operate freely? If not, look out. Of course, sometimes paint may stick the windows and they can be pried loose and made to operate freely. Are the floors level and in good condition? If the floor is high in the center of the room, it is not because the floor has risen, but because the walls are settling.

Do not buy a house if the floors are not level. This situation is very difficult to correct and usually indicates a serious defect in the structure.

Look for evidence that water has been a problem. Are there spots on the ceiling or walls that show that water has been leaking around the roof area?

What about under and around the windows? Look around the bottoms of the walls near the baseboards for water marks. What about areas near the shower bath, or around the laundry trays?

What about water stains on the bathtub indicating a leaky faucet? Watch slab floors for signs of moisture; this might be indicated by buckled or uneven linoleum, or floor tile curled up at the corners. If you find many of these features, do not stop there, but keep on looking until you find another house.

If the floor is of frame construction, is the area under the house well ventilated? Crawl under the house and examine the framing under the floor.

Take your pocket knife and test the joists and sills to see if they have started to decay. Get up into the attic and look over the situation; it is surprising what you may discover. The two most important parts of a house are the foundation and the roof.

If these two are in good condition, it is a pretty good sign that the house is structurally sound. But structural soundness is not the only, or even the most important criterion to use in judging a house.

Study the Plan

The structure exists solely to enclose the space that you will live in. Study the room arrangement carefully. Does the passage from one room to another seem natural and easy, or do you have to walk too far to get anywhere? Do you enter the house gracefully?

Will the rain water drip down the back of your neck while you search through your purse for the key? Is there a closet near the front door for wraps? Do you come directly into the living room, or is there at least a hint of an entrance hall?

Will the living room be the principal passageway through the house, with traffic lanes across the carpet in a year or two? Where will you put the piano or the davenport? What about the television? Is there a good place for it and the spectators around it, where they can be out of the way of other activities?

Is the kitchen complete with adequate work areas where they will be convenient? Is there a good place to eat? Is there a place in the house for a dining table? What about the storage of food supplies?

Is the house light and cheerful, or dismal, dingy, and dark? A gloomy house can have a very depressing effect on a family.

Are there enough bedrooms, and are they large enough? Are wardrobes large enough, and fitted with rods, shelves and organized storage space? What general storage space is there for suitcases, fishing tackle, cameras, projectors, golf clubs, etc.?

Is there a special closet for cleaning equipment? Check the location and size of the bathrooms, and the arrangement of the fixtures.

In selecting a house, be sure to get the things in it that you have always wanted.

That is the reason you are buying instead of renting. If you want oak floors on a wood frame, don’t settle for asphalt tile on concrete, which is much cheaper to build.

Some people have trouble with their feet when they stand and work on hard cold floors, as concrete floors tend to be, even when covered with asphalt or vinyl tile.

If you buy a house to be paid for in twenty-five years, how old will you be when it is all paid for? How much repair will it need by that time? Will it still be a good house, or will it need to be replaced?

How long should a house last? If well built on a good concrete foundation and if the roof is kept in repair, a house should last several centuries. Many wood frame houses are still in use that were built in the colonial period of America.

They are still strong and in sound structural condition, but aside from their historic value, how well adapted are they to modern living? Houses do not ordinarily fall down; they just get out of date and show signs of the wear and tear of everyday living.

Minor repairs, patching and a good painting are all they need to be like new; that is, like they were when they were new. But fashions in houses change rapidly the same way they do in hats, except the fashion in hats may change a little faster than it does in houses.

When you do decide to purchase it is surprising how much you can save by using a mortgage calculator.

Roby Pagong asked:




You may have already heard about home inspection but have not fully understood what it is all about. This process is required in most home purchasing transactions. However, there are still homebuyers who neglect having the property inspected before they purchase it. They do not recognize how important it is to know the real condition of the property before agreeing to buy it. Bear in mind that it is not just any simple purchase, once you buy it; you are going to live in it.

A home inspection is a process of checking the property without being invasive. A trained home inspector who is experienced to provide objective and honest assessment does this. He monitors the various areas of the house using devices intended for evaluating the property. The inspector will indicate his assessments in a report. However, it will be limited to the current conditions of the property and will not make any claims about how the future condition of the property is going to be.

The inspection will include several areas in the property. Some of these areas are the heating system, the plumbing, the roof, the electrical system, air-conditioning system as well as the overall state of the structure. Although the inspectors will inspect the several areas of the property, there are still defects in the house that they might not detect. The inspection has limitations as well. Among the things it is not able to check are the easements or the right of way and the zoning violations. The inspector will not also measure the boundaries. The title companies usually handle these issues.

Having the property inspected before purchasing it is very important because purchasing a house is an important investment. Although there are properties that have to be purchased as is, most require to be inspected. This is a way of letting the buyers know what they are investing in. It is only right that you inspect the merchandise very carefully to ensure you get your money’s worth, right?

There are many reasons why you should undergo home inspection before purchasing the property. First, you will be able to know the real state of the property you are buying. You can use the report of the inspector to renegotiate its value especially if you feel that it is overpriced. If the seller refuses to sell the property at a lower value, you can ask him to repair its defects. If you still cannot agree on it, you can cancel your purchase.

This can also be beneficial for the sellers. They can have the property inspected before they put it up on sale. This way, they will know the necessary repairs that will improve the property’s value. They can also make it more saleable.

It is very important to have the property you wish to purchase inspected. This will give you a perception of what you are purchasing. This will also give you the chance to renegotiate the value of the property sold. Finally, you have the opportunity to cancel the purchase if you think it is not worthy of your money.

Oswald Melman asked:




Keeping a house safe is a task that requires a fair bit of attention, but suppose you aren’t even going to be in town? Then there are a whole other set of rules to follow. It’s a well-known fact that robbers prefer to strike when houses are empty, and popular vacation times give them a lot of room to work, with many people at least getting away for a weekend. However, even business travelers who are obviously on a specific routine can be a target, so it’s very important to figure out what your “tells” are and prevent them before some crafty criminal takes advantage of them and wrecks your home security.

First and foremost, for anyone who travels a lot, a home alarm system is an essential investment. Especially if you are far away, it is going to be days before you realize that your home was robbed if there is not some way that an alarm can notify the police. Better yet, robbers are more likely to flee the scene of a crime when they encounter an alarm, leaving more of your belongings safe and sound wherever they were before. Just don’t forget to set the alarm before leaving for vacation, or it won’t matter that you have it at all.

Aside from deciding to install home security systems, another huge way to keep a house safe while out of town is to hide important information someplace secure. If you’re keeping things like social security cards and birth certificates at home, to say nothing of sensitive work materials, try to invest in a home safe, which is securely located somewhere hidden where removing it would be difficult. Keep sensitive materials there, and be sure to make a back-up of important digital information and put the external hard drive someplace else.

Another big step in preparing your home for any sort of absence is making sure that you actually don’t make it appear that you are going to be gone at all. The best thing one can possibly do for the most optimal level of home security is to not leave a single clue to a robber that anything else is different. This might mean leaving a car in the driveway, going out of your way to make sure different lights are on at different times (a timer can be helpful with this), and taking precautions with any obvious clues. Be sure to put newspaper and mail delivery on hold, as a pile on your porch is a sure sign that you’re out of town.

One of the most effective things for home security not just while you’re away but while you’re in town, too, is to have a good rapport with your neighbors. Having someone trusted who lives nearby looking after your house is truly invaluable, and if the power goes out and renders your home alarm system useless, a caring neighbor might end up as the first line of defense if anyone tries to break in while you’re on the road. Good relationships with trusted neighbors is also a huge benefit for the time you are in town, too.

Real Estate Advisor asked:




Extra garage space emerged among the top home feature preferences of home buyers in the latest home buyer preference survey conducted by National Association of Realtors (NAR).

The survey titled “2007 Profile of Buyers’ Home Feature Preferences” brings to the forefront the changes that have taken place in home buyers’ preferences when it comes to what they want in their homes. Conducted among buyers who purchased homes last year, the survey focused on their preferences among 75 home features and room types.

Here is a list of the top features that home buyers want in a house.

1. Extra garage spaces – Most home owners have oversized garages as top priority in their home feature preferences. According to NAR’s survey, the number of home buyers who prefer bigger garages has increased by 16% from 2004 to 57%. The percent of home owners who are willing to pay more for an oversized garage has also increased from 6% in the 2004 survey to 56% in 2007.

2. Air conditioning – Air conditioning is a top priority and was ranked ‘very important’ by three out of every four respondents.

3. Walk-in closet – Walk in closets in master bedrooms is another feature that 53% of home buyers considered important.

4. Hardwood floors – Hardwood floors are more popular with 28% of home buyers ranking it as very important, an increase by 7% since 2004.

5. Granite countertops – Granite countertops was assigned the ‘very important’ status by 23% of home buyers for their homes.

6. Cable/satellite TV-ready – Cable and Satellite TV ready homes are important for 46% of home buyers, an increase by 6% from 2004.

7. Energy efficiency – The survey also points out the popularity of energy efficient homes among home buyers in general and new home buyers in particular. Among new home buyers, 65% have termed energy efficiency features in their homes as ‘very important’, compared to 39% of home buyers of existing homes.

The survey also showed that these home preferences varied largely among home buyers based on their regional locations as follows.

South and Midwest: Home buyers in the South (91%) and Midwest (81%) wanted their homes to have central air conditioning over any other feature. Master bedroom walk-in closets were very important for 66% of home buyers in the South while 61% of Midwesterners wanted oversized garages.

Northeast: Among buyers of the Northeast, 53% wanted homes with a backyard or play area as a priority followed by central air conditioning, preferred by 41%.

West: Oversize garages were the top priority of 66% buyers in the West followed by central air conditioning (59%).

Kate Faulkner asked:




Most people just decide ‘I’ve got a bit of cash’ and then ‘I’ll buy a property’. Next thing you know, you’ve got a ‘bit more cash’ so you ‘buy another property’. Then you’ll say, ‘I’ve put my money into property for my pension’ or ‘I’m leaving the kids a property portfolio’.

If this is you, let me ask you a question – have you actually worked out what your portfolio is worth and whether it will deliver what you want eg a pension? Or what tax your kids will pay to inherit the portfolio you’ve left them? Have you ever checked with an Independent Financial Advisor or Wealth Manager whether your portfolio can be protected or will deliver to you in your retirement?

If not, then now is the time to do so – don’t leave it for a few years, you never know what will happen. Sorry to be ‘doom and gloom’ but things happen that are out of their control, people get sick, lose their job and then lose their home or homes in the case of property investors. It’s happening to people now and now is your chance to make sure it doesn’t happen to you!

Top Five Tips to Ensure your Property Portfolio Delivers what YOU Want!



1. Be clear about what you want from your portfolio. Is capital growth more important than income or vice versa? Are you maximising your property ‘box’?

  

2. Are you fed up with looking after tenants or managing a build or renovation? Then see if you can employ someone to do it for you. Want help finding someone to manage your property project, then contact us.

3. What level of risk are you willing to take? Property is typically a ‘medium’ financial risk, you may want to take more risk the younger you are and less the older you are.

4. What’s the value of your whole estate? For example, how much are you worth if you died today (sorry, not trying to depress you, but this is important if you have a family!).

5. Track how well your property portfolio is doing versus other investments. For example, general share indices grew by 50% in the last 12 months while property fell by nearly 10%.

Top Five Things that will STOP your Property Portfolio Delivering what YOU Want



Property won’t always deliver what you want. Take people that have invested since the peak in 2007 (and since 2006). Typically property values have fallen, they are struggling to re-mortgage their portfolio and are stuck on high interest rates. These high rates mean that rental income isn’t necessarily covering the costs of owning and running the property so their portfolio is running at a loss.

If you don’t want your property portfolio to fail, then make sure you run a ‘portfolio health check’ to ensure yours is successful!

What would happen if………



1. Personal taxation increased? At the moment you are taxed at either 20%; 40% or 50% of your income (and 50% is a new tax rate). What if taxes went up to 25%; 45% or 60% – would you still make any money?

2. Property taxes. Currently capital gains tax is just a flat rate of 18%, what if the government brought back the 40% tax rate for all capital growth on a second home, what would this do to your portfolio when you come to sell?

3.  Inflation. Over the last 10 years, rents have only really grown by around 10% (on average), while inflation has ranged between 1.5% per year and 4% per year. In other words it’s hardly kept up with costs at all. What effect will inflation increases have on the value of YOUR rental income in the future?

4. Property Price fluctuations. We’ve all seen property values (in the main) fall from 20% of the 2007 peak. How much further do they need to fall for the value of your property to be negative (ie less than your mortgage), or falling less than the 25% equity you typically need to have in the property to re-mortgage.

5. What Costs might go up? What’s your rental income versus costs break even? If mortgage costs go up by 10% or 20% will you still secure net income from your property or have to put money in? What about insurance costs, if they grow by 30% this year, will this push your property into a loss making situation?

Work out what your top five costs are and what increases you would need to see before you start losing money.

Peter Jordan asked:




Throughout the United States, millions of people are looking to buy a home in New Jersey – either now or in the future. Recently, lower interest rates have become available, making it more affordable than ever to purchase a home. As a long term investment, buying a home certainly makes a lot more sense (and cents) than renting a home or an apartment.

In order to purchase a house, you will need to have sufficient funds for the closing costs and down payment. Generally, the down payment will comprise around 10% of the total purchase price. Ideally, you should try and put 20% down; otherwise you’ll need to buy private mortgage insurance, which will cost you more in terms of your monthly payment.

On average, closing costs in New Jersey cost around 5% of the sales price. Before you purchase a home, you should always request an estimate. Many first-time homebuyers often underestimate how much their closing costs will be.

So when will you know you’re ready to buy a home? When you know precisely how much you can afford — and you’re willing to stick with your plan. As a general rule of thumb, when purchasing a home and calculating your monthly mortgage payment, the total should exceed no more than 25% of your total monthly income. Although you can be sure of finding lenders who will insist you can afford to pay more, you should never let them pressure you into doing so. Don’t take on more than you can handle. Stick to your budget.

Keep in mind there are always more expenses involved with a home other than the mortgage payment. You also have to pay for utilities, homeowners insurance, property taxes, and maintenance. Maintaining and caring for a home requires a lot of responsibility. Make sure you budget for these expenditures – and not just your mortgage.

Before filing an application for a loan, be sure to request a copy of your credit report and check for any errors. Although you may think it doesn’t happen, you could easily discover an error on your credit report and not realize it. Having an error on your credit report can cost you increase in interest rates. An error can easily affect your credit or FICO score, which will throw you in a higher interest bracket and ultimately cost you a lot more money in the end. Therefore, you should always know your credit score before you approach a lender.

By checking your credit report early enough, you may leave yourself enough time to repair any problems and get your credit back on track. Rebuilding credit can take time though, sometimes even years. Always plan ahead – and give yourself plenty of time to fix your credit.

Purchasing a home will require a strong commitment on your behalf. You should always strive to get the best possible deals, which means knowing your credit status and where you stand financially. This way, you will be eligible for the lowest interest rates. You don’t want to purchase a home with bad credit, otherwise you’ll pay a lot more money for the home. By patiently taking the time to repair any credit problems and save up some cash, you’ll be in an excellent position to get a much better home for your money

lizzy james asked:




When choosing a home:

If you are considering buying a new house as result of sudden movement or as a result of fresh investment you must consider what your present priority is in life before you start searching for that home.

Your priority will determine whether you are paying more or less. Choice areas are normally more expensive and less available. Setting your priorities therefore may require that you think on the following reasons.

 

Transportation:

Having an easy links to the major transportation venues is much more paramount to some people than the cost of that home. The more the easy access to the bus stop, tube stop, rail station, or even to the airport the more expensive the home may be. This kind of location might be expensive than those that do not have easy links to transportation. It is advisable for investor to buy this kind of homes because it appreciates in value with the shortest time.

 

My dream neighborhood;

This is one crucial factor when considering a location to buy your home in. Remember a home can be refurbished but cannot be moved. The more reason why you should consider a choice location, as a real estate investor your paramount motive should be capital appreciation of that home which in turn depends on the neighborhood you have chosen. For a home buyer that desires to reside in his home, he must consider the following. Is the neighborhood you are considering healthy for your family? Is it secure for your children and your properties? Is the community gated? Does it have the amenities that your family would need? Are your children’s schools close enough for a short drive or a stroll?

 

HOA

It is crucial that anyone desirous of buying a home- condominium or any townhouse should take cognizance of the various rules governing such location. HOA’s manages the affairs of the neighborhood you are desirous of.  To be able to able to live peacefully in this neighborhood you need to join the HOA and abide by its regulations. Therefore it would be wise to learn the majority of HOA rules governing that locality before you buy your home in that vicinity.