Top 5 Reasons to Buy a Condominium

“A growing number of people in the real estate market are looking to buy a condo rather than to purchase a home or to rent an apartment. But, why are condos so hot in the real estate world? Here are the top five reasons why so many are looking to buy condos rather than other forms of real estate.

Reason #1: Condos Do Not Require Upkeep

One of the biggest reasons that so many people are looking to buy a condo is the fact that they do not require the same type of upkeep as owning a house. For those that hate mowing the lawn, pulling weeds, repainting the house, or doing other chores associated with homeownership, it simply makes more sense to buy a condo. In addition, many people simply do not have the time to maintain a home because of their careers. Therefore, a condo provides a practical solution.

Reason #2: A Condo is an Investment

Of course, those that don’t want the upkeep headaches associated with a house could always rent an apartment. The problem with an apartment is that it often feels like money is being “thrown away” as you pay your rent and effectively help your landlord buy a piece of real estate. With a condo, you can still buy the place in which you live while still enjoying the same conveniences offered by an apartment.

Reason #3: You Can Take Advantage of the Amenities

When you buy a condo, you also buy rights to a number of amenities. Since all of the money put into the condo is shared by those living in the building, it is possible to afford many of lives little luxuries that are difficult to afford on your own. For example, when you buy a condo, you might gain instant access to a pool, an on-grounds gym, and more. Even better, you don’t have to worry about the upkeep for these little perks either.

Reason #4: You Can Get More Space

Often, buying a condo is a good alternative for those looking for a large piece of real estate but that do not have the funds. If you want to buy a 3,000 square foot home, you may not have the funds for it. On the other hand, it might be within your budget to buy a condo that provides 3,000 square feet of space. In fact, there are some pretty good deals going on in the condo aspect of the real estate market right now that some savvy shoppers are happily taking advantage of.

Reason #5: You Want to Socialize

If you do not have a large circle of friends and you are looking to socialize more, a condo can help make this happen. When you buy a condo, you also buy into a community. Therefore, purchasing a condo can easily and quickly provide you with a whole new group of friends that you can get to know and enjoy.

There are many reasons to buy a condo rather than other forms of real estate or rather than renting an apartment. At the same time, a condo is not the right answer for everyone. Therefore, you should weigh the pros and cons of all of your options in order to find the right place for you.

”Eric Bramlett is the Broker and co-owner of One Source Realty in Austin Texas. He has seen considerable success in real estate, and looks forward to many more years in the business. Eric currently invests, renovates, and develops real estate in the Greater Austin Texas Market. He spends his time working with select clients, helps his new agents get started in their real estate careers, helps his experienced agents progress their careers to the next level, & when he has time…he takes his dogs to the lake. Visit Eric’s [http://www.ericbramlett.com]Austin Texas Real Estate Guide & visit his [http://www.onesourceaustin.com]Austin Texas Real Estate company’s website. [http://www.onesourcemetro.com]Downtown Austin Condos & Lofts.

Making an attractive home-purchase offer

It’s easy to assume that negotiating is adversarial. You, the buyer, are on one side — the side that wants to buy a property for the lowest price possible. The opposition on the other side is the seller who wants to sell for the highest price possible. You’re locked in a tug of war to see which side will win.

It’s more productive to look at a negotiation as a problem-solving process. You and the seller may have different ideas about what price the property should sell for. However, you’re united in a common goal of consummating a deal. The challenge is to resolve your differences through a process of give and take until you either reach your common goal, or decide to go your separate ways.

Of course, you have to arrive at a mutually agreeable selling price for a sale to go through. Sometimes this will happen quickly; sometimes it’s a drawn-out process that can last over days or even weeks.

HOUSE HUNTING TIP: Patience can be your ally. Sometimes rushing the process can quicken its demise. In fact, you may be better off waiting before starting the process if you think that the asking price is too high.

For the first time in years, we are in a market where some home sellers — typically those who bought recently — won’t be able to sell their home for a profit. But, they may need to test the market to be sure.

If this is the case, the best negotiating strategy may be to offer nothing until the sellers are close to reducing their asking price. There can be a benefit to making an offer just before a price reduction is made. If you wait until the price is lowered, you could end up paying a higher price if other buyers suddenly become interested.

In order to make sure you know that the sellers are contemplating reducing the price, ask your real estate agent to talk to the sellers’ agent and make sure that the sellers are made aware of your interest. Don’t be bashful about the fact that you are interested, but not at the current price. This way, you may receive a call when the sellers decide they’d like to see an offer from you.

When you make an offer and there’s no competition from other buyers, your initial offer price should leave you room to move up in price. But, it should not be so low that it’s insulting to the seller. Otherwise he or she might not respond at all. An offer that’s much lower than the market would give the seller the impression that you can’t afford more, so there’s no point in issuing a counteroffer.

Buyers often think that if they start too high initially, they’ll end up paying too much. Your initial offer price should be good enough to entice the seller into a dialogue. It’s a price to get the ball rolling. From there, you can move up in small increments, if necessary.

Don’t get so caught up in negotiating the price that you overlook other opportunities for consensus building. Most good negotiations have a sense of fairness about them. During the process of your negotiation, you and your agent should brainstorm all the possible ways that you can accommodate the sellers.

Do they need a quick close? If so, they might be willing to give more on price for a speedy close. However, you might want to hold up offering this information at the beginning of the dialogue. That way, you have something more of value that you can offer the sellers in exchange for a further price concession.

THE CLOSING: When you get close on price, offering to split the difference can put a seal on the deal.

By Dian Hymer

How to determine what you can afford

One of the most common pieces of financial advice is to make and stick to a budget. But what does that mean exactly? It’s easy to know if you can or cannot afford that purchase at the grocery store simply by looking in your wallet. But how do you know if you can handle big-ticket items like a car or a plasma TV? Knowing how to budget can mean the difference between early retirement and working until you’re old and gray. In fact, it’s the most important part of planning your financial future. Here are some tips on how to determine what you can and cannot afford.

If you can’t pay for a car in five years, you can’t afford it
Technically, you can keep debt going forever, especially credit-card debt. But doing so means that you could end up paying more in interest than the amount you borrowed in the first place. While there’s no absolute rule for how long you should take to pay off a loan, it is best to pay it off as quickly as possible, especially if it’s an item that depreciates over time. Why? Well, since you end up paying more for longer loans, you’ll get hurt even worse if you extend a loan on something that’s losing money, like a car. A car — unlike your house, which goes up in value — decreases the minute you buy it, so the longer the loan, the more money you’ll lose.

Your mortgage payments shouldn’t be more than 30% of your income
You hear a lot of guys give you advice like: “Don’t bite off more house than you can chew.” But what does that mean exactly? A standard rule of thumb is to make sure your mortgage payments don’t exceed 30% of your income after you pay the tax man. While that sounds easy enough, you must watch out for two things.

First, you need to build a cushion because your income will vary from year to year (and sometimes emergencies happen). But, more importantly, you must be prepared for possible jumps in your mortgage payments. If you signed up for a variable loan or a negative amortization mortgage, you could see your payments increase significantly. So when you budget, make sure to calculate the highest payment for the life of the loan, and not just the monthly payments you’ll make in the first year. Don’t forget to factor in savings, outstanding debts and other important variables. After all your monthly expenses, you should have 10% of your income left for savings.

Savings are the most important part of your budget, because a budget that doesn’t leave you money left over at the end of the month isn’t a budget at all — it’s a recipe for disaster. Most financial advisors like to get their clients to save 10% of their income. But remember: That’s a minimum. You can always save more. The problem is that most guys save what’s left, which usually means they save nothing at all. When trying to figure out if you can afford a big-ticket item, don’t forget to take that 10% off the top for savings.

Take outstanding debts into account
If you ignore your outstanding debts simply because you don’t need to pay them right away, you’ll just dig a deeper hole. Always include them in your budget and choose monthly amounts that pay off the whole debt in five years or less (excluding homes). Remember: A monthly budget isn’t just about putting you in the black at the end of every month; it’s the strategic tool you’ll use to make your financial position better and better as the years go by.

Factor in income instability
Nothing lasts forever, least of all jobs in a rapidly changing economy. While you can hope that your six-figure income will last for years, the truth is that you might lose your job and find yourself having to take a pay cut. If you’ve budgeted for that possibility, you should be able to take the hit in stride. If not, you may find yourself with expenses that you can’t possibly afford to pay. So what’s the lesson? Assume your income won’t always be there and avoid a budget that puts you right on the edge. In other words, don’t make purchases you’re not certain you’ll be able to pay off in the future.

Budget before you buy
Looking at your income relative to your expenses and declaring that to be your budget isn’t the way to go. Making a budget means starting from zero, factoring in what you need to buy, looking for places to save, and then finding out what you can afford to buy. In other words, don’t work backward, and don’t let your purchases dictate your budget.

Know your limits
In life, knowing your limits will keep you in the clear. When it comes to managing your money, the best policy is always to play it safe. Stretch for the things you need, like a home or an emergency, but don’t overextend for the things you only want, like a new car or a vacation. If you know what you can spend, you’ll not only save money, you’ll also save yourself aggravation.  

By: Michael Estrin

Negotiating tips for home buyers

Not only is it taking longer to sell homes in the current real estate market, but it’s also taking more time to negotiate most purchase contracts. Factor this into your game plan as you forge ahead in the new home-sale market.

Some people have an adverse reaction to negotiation. They would rather state their price upfront, along with a message to the other party to either take it or leave it. Last year, that approach worked fine. In fact, it was the only option for some buyers in multiple-offer situations; their first offer had to be their best offer or they were out of luck.

There are still pockets of the market where there are more buyers than sellers. But, in most areas, the supply-and-demand equation has shifted from a low-inventory seller’s market to a balanced or buyers’ market with growing inventories of homes of sale.

A common theme of today’s market is that sellers’ expectations are still based on last year’s prices. It’s common to find new listings that are priced too high for the market. If you’re interested in one of these listings, be prepared for a protracted negotiation.

Let’s say you’ve found a home you really like; it’s new on the market and listed at $600,000. You’ve been looking for months and are up on current market values. By your calculations, the house is worth $550,000.

If you offer $550,000, the sellers are not likely to accept it; the listing is too new on the market. One option would be to wait a few weeks before making an offer. The seller might then be more receptive to a lower price.

HOUSE HUNTING TIP: The take it or leave it approach is unlikely to be productive. Most sellers in this market are compelled to counter a low offer in the hopes of selling for more. You could always counter back at the price you offered. But, a more promising approach is to offer less than your top price at the outset. This gives the sellers the opportunity to counter your offer, making them an active participant in the dialogue.

You might start with a very low initial offer of $495,000. But be careful: a seller may flat out reject your low offer unless your offer is otherwise acceptable. Make sure you are pre-approved for financing and understand what other things the sellers are looking for, other than a good price, before you start the negotiation.

Be prepared for the seller to yield little during the first round of negotiation. This sends a message that he’s willing to negotiate, but you’ll have to come up significantly if you want to buy his house. The seller might come back with a counter price of $580,000.

Now you are $85,000 apart-a huge chasm. If you are serious about the house, you should telegraph this to the seller by making a big jump up in price, say to $530,000. The seller came down $20,000. You come up $35,000.

If the seller comes down another $20,000, you’re within $10,000 of your top price. A motivated seller would have a hard time walking away from the transaction if you then offer $550,000. At this point you should let the seller know that this is your top price.

THE CLOSING: Sometimes it pays to take a break from the negotiations. If you feel you’re getting nowhere, step back until the dust settles. With a little time, the sellers may realign their expectations if they realize you are a sincere, qualified buyer and they aren’t likely to do better.

By: Dian Hymer, author of “House Hunting, The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books.

Six Ways to Beat the Stress of Buying a Home

We all go thorough stressful experiences in our lives and the stress of buying a house is a no lesser experience.  First, there is the stress of finding the right real estate agent you can trust, find the home that you feel is just right for you, negotiating the sale, and finally arranging the move. During this time you may go through feelings of frustration, which may result in your not acting in your best interests. Below find Six Ways to Beat the Stress of Buying a Home.

1. Keep the end in mind
Keep focused on what you are trying to achieve with the purchase of your new home, write how you will feel in your new place and always keep this in the forefront. Your emotions will be running high at this time and you will need an anchor so it is imperative that you remain focused on the end result.
 
2. Be Flexible 
In the real estate market anything can happen from the time you sign the contract to the closing of the sale. Remain as flexible as you can be, you could come across concerns during the home inspection that the seller is unwilling to fix or the repair costs are more than the amount that was stipulated in the contract.  Always overestimate the closing costs as interest rates can change and this will affect the downpayment and closing costs that you will need to finalize the deal. If you anticipate these changes you will be able to deal with them whenever they arise.
     
3. Become Knowledgable
Become educated with the process of buying a house. Ask your Realtor questions as you go along, make sure you fully understand what problems may arise during the process. Your Real Estate Agent will help you thorough securing a Mortgage, ensuring that your loan is approved within a reasonable timeframe. Ensure that you are at the appointment when the home inspection is being done, during this time you will be able to ask the home inspector questions regarding the home.  Try to clear up any loose ends as soon as they come up.
       
4. Have Faith in the Process
The process of buying a house can be very intimidating; there is so much to do in sometimes so little time. You will tend to have doubts in the decision that you have made, you may feel that you have taken too big a gamble but the truth is you will always win.
 
5. You always have Options
You always have the option of shopping around for the best interest rate, you don’t have to use the first lender.  You are in the drivers’ seat, compare the best mortgage rates and find the cheapest mortgage payments. Use a Mortgage Calculator in order to understand what your monthly costs will be.
 
6. Keep Busy
There will be times during the process that you will be anxiously awaiting a decision, such as awaiting your Mortgage Approval, waiting for the acceptance of your Agreement of Purchase to the Closing of the
Sale. During these times you will feel as if everything is out of your control, try to do activities that will keep your mind busy, use whatever diversion works best for you. Try to forget the situation and take it one day at a time, you will be rewarded in the end.

The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.  

Post offices to offer one-stop service for buying and selling of properties

Customers will soon be able to buy, sell and rent residential and commercial properties at the post office.SingPost has signed an agreement with ERA Realty Network to provide a one-stop service to customers looking to sell, buy or rent public and private homes and commercial properties.

It will initially be offered at three of its post offices in Ang Mo Kio, Marine Parade and Toa Payoh from October 16.

SingPost says the initiative is part of its diversification strategy to leverage on its wide retail network to offer more value-added products and services to its customers.

Source: Channel NewsAsia, 29 September 2006

5 Powerful Property Buying Strategies

In a perfect world, it would be easy to always be objective and make rational decisions based on sound information. In reality, emotions and timing often have a big effect. Sometimes the best you can do is to set the stage so that you minimize the subjective influences.  

Give yourself power and control. Don’t find yourself in the position of “having” to buy and doing so in haste.  

1. Work out the finances first. Paying cash? Getting a mortgage? Find out what you can afford and check out all your various options.  

Meet with whatever experts you need to in order to have all your facts – a lender, your tax advisor, etc. Knowing exactly what you want to spend and can spend will eliminate time spent looking at properties you can’t have.  

Not only that, when you find the right property you can make a “clean” offer without a financing contingency. Sellers are more likely to respond favorably to clean offers.  

2. Unless you really want to own two properties, sell first. Then buy. First of all, the property you want will probably not take a contingency offer. So unless you are prepared to own both (and you have to plan for a worst case scenario) you are wasting your time with the offer.  

Second, if you are emotionally attached to what you want to buy you won’t be as objective on selling your home. You may take less than it’s worth so that you don’t lose the other home. There’s nothing wrong with that as long as you understand the financial implications.  

3. Use a realtor who knows the market. That may sound too simple in this age of the internet, when buyers have access to the same data the agent has. The difference is the ability to interpret that data.  

Full-time realtors do more than show homes and write contracts. They study market trends and observe area fluctuations. You are thinking about your needs now. But your agent is thinking about both now and in the future when you are ready to sell again and looking for your future resale opportunities.  

In addition, the internet is an increasingly non-objective source of information. Many websites do not display all the properties that are for sale in a given area because of contractual conflicts. And most new communities are not listed at all in any search vehicle. A professional realtor should be able to show you all the homes that fit your needs.  

4. Wait till your toes curl. In other words, don’t get pressured into making a decision. When you find the right home you will know it (your toes will curl or the little hairs on the back of your neck will stand up).  

That doesn’t mean look at 200 homes before you make a decision. Sometimes it’s the first home you see. But don’t let an agent, a seller, or a spouse, push you into something you don’t feel good about.  

5. You can’t have it all. Decide what is most important in your next home and put it into perspective. If it’s location, or price, or view, or square footage, or school districts, or amenities, or whatever.  

Remember that some things can be changed. Floors, kitchens, landscaping, etc. are all changeable. So if they are not perfect, they can be. But location, view, amenities, etc. are there forever.  

No matter what your budget, the good fairy of real estate did not go – poof! There it is. It simply doesn’t happen.  

Everyone has to make compromises. So decide what truly matters to you and put that at the top of your list. Give in on what doesn’t matter as much.  

Follow these guidelines and you’ll get the home you desire. 

By Crissie Cudd

How to Buy Your First Home….the Easy Way!

Avoid the 9 Most Common, Painful, Frustrating Mistakes 1st-Time Home Buyers Make

Buying a residence can be a hair raising experience. You will experience a roller coaster of emotions while finding the right place, securing the loan and finally moving in. For most of us, the first time home purchase is the largest investment we’ve ever considered. The emotions of purchasing something so expensive and personal can often cloud our business judgment. Most home purchasers do little or no research before they invest their nest egg. Doesn’t it make sense to become as completely informed as possible before you buy your first home? This special report is designed to help you avoid 10 common and crucial mistakes. The right real estate professional can help you make good sound business decisions based on your personal situation.

1. Imagine the Property Vacant – Your furnishings and decorations will be the ones filling this new residence. Don’t be swayed by beautiful furniture; it leaves with the owner.
2. Income + Lifestyle = Loan Payment – Sit down with your professional real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix-ups. Your dream home is certainly worth a sacrifice but don’t mortgage your entire future.
3. View Several Homes – See at least 7-10 properties. Don’t move too slow but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the home market. When you find the right property all the leg work will be worth it.
4. Utilize Your Team – By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your banker, lawyer and agent. Each of them should work hand in hand for your benefit. Explore all the options before you sign.
5. Be Columbo (Kiasu) – Check out all costs and expenses before you sign. Utilities, taxes, insurance, maintenance and home owner dues if applicable. Make sure all utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. Ask lots of questions and be very detail conscious. Don’t take anything for granted.
6. Do a Final Walk-Through – Visit the property after all furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Things that could have been spotted in a final walk-through are often unintentionally overlooked.
7. Plan For Flexibility – Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
8. If It’s Not In Writing, It Doesn’t Exist – All promises and discussions should be in writing. Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Have your professional keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
9. Loyalty Breeds Loyalty – Be open, honest and up front with your team. Hard feelings and disloyalty will cause head aches, delays or may even keep you from getting into the home you worked so hard to locate. Take the time to select the right team in the beginning and your first home purchase will be a pleasing and memorable experience.

The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.

Foreigners and Singapore Property

A “foreign person” is defined in the Residential Property Act as the follows: 

1) Any person who is not a citizen of Singapore

2) Any Permanent Resident

3) Any foreign company or converted company

4) Any society or converted society which has not been granted approval or received exemption by the minister 

Unless there is a written approval from the Controller of Residential Property Land Dealings, a foreigner can only buy the following type of properties: 

1) Any flat in a development bearing the tittle “Condominium”

2) Any flat in a building that has at least 6 levels, including the ground level and any level below the ground

3) Any non-residential, commercial or industrial property 

A foreigner needs to apply to the authority if he/she wants to purchase the following properties: 

1) Any landed residential properties including detached houses, semi-detached houses and terrace house

2) Any flat in a building of less than 6 levels

3) Any vacant land zoned for residential use 

The application forms can be obtained from: 

Controller of Residential Property Land Dealings (Approval Unit) 

Shenton Way

#27-02 Temasek Tower
Singapore 068811 

Tel: (65) 323 9853   

Applications are evaluated on a case-by-case basis, and the entire process should take about 3 months. 

For more information, email lushhome@gmail.com

Buy or sell first?

When it comes to home buying, the ideal situation would be to close both concurrently and move into your new home a few days prior to selling your previous. This does happen but anyone looking to buy a new home needs to consider all the possible scenarios.

Should you buy or sell first? There are many variables involved; there is no universal correct answer. It basically comes down to your specific circumstances. For instance, can you afford to pay two mortgages in the event your previous home does not sell by the time you move? Are you willing to move twice to find the home of your dreams if you sell first and can’t find the dream home fast enough?

This is where the advice of a professional real estate agent is invaluable. They know the current market conditions. They are trained and experienced in working with home buyers and sellers to determine an ideal time to buy and sell.

It is generally less stressful to sell your home first, because you won’t have to worry about owning two homes at one time. The market will dictate how long it will take your home to sell, as will your location and the time of year. As a rule of thumb, it is a good idea to put your home of the market as far in advance as possible when purchasing a new one. But, if interest rates are good and there is a short supply of available homes, your home will most likely sell faster. In that case, you may want to purchase a new home first.

What if your present home sells before you find a new one, putting pressure on you to find the right house for you more quickly? You may then decide to make an interim move or request to rent back your home for a specified amount of time as you continue to look for your new home. Those may be worthwhile options if you have your heart set on a specific location or type of home or if you are purchasing a home that is under construction.

If you buy a home before selling your present home, you may end up with two mortgages. Under those circumstances, you may be able to apply for a bridge loan to assist you in making two mortgage payments until you sell your first home. Your real estate agent can assist you in finding a lender.

So should you buy or sell first? It’s a decision that depends on your own circumstances and a knowledgeable real estate professional should be able to help you make the right decision.

Source: The original author is not known. It is not our intention to infringe upon copyrighted material. If you are the original author of any of these articles, please let us know so that we may provide appropriate credit.