Braving The Real Estate Market For Better Buying

The media has been reporting bad news concerning the housing market for quite some time. However, the news is only bad if you are on the receiving end of it. Despite how foreclosures are rising, now is the first time in years that houses are affordable. With the market overrun by eager sellers, you can get a great bargain on real estate across the country.

Why Now Is The Time To Buy Real Estate

Like mentioned earlier, now is a buyer’s market. Not only are sellers trying to get rid of property in a hurry, but also interest rates are nearing a historic low -- or are at least lower than a few years ago. Buying real estate in a downturn market presents itself with limitless investment opportunities. If you are just looking for your first home, a new home or want to profit from renting, current real estate prices make it easier than ever.

Things To Know Before Buying

Although prices are down, chances are that those prices may dip even further in the short-term. Still, this does not mean you should pass up a great offer. The housing market takes a while to make a comeback, so only buy property if you plan on living in it for a few years. Afterwards, if you want to sell, you should be more than able to profit on the return.

The other thing to keep in mind is a real estate agent’s mantra: location, location, location. Just because the property is cheap does not equate desirability. If you love the area and plan on living there, then of course it is a good deal. On the other hand, if you are looking at the property as an investment, keep an eye out for slashed prices in prime real estate areas.

Lastly, with so many mortgage lenders scrambling to help floundering borrowers, lenders have tightened their restrictions on loans. If you have the cash for a down payment and good credit, you should be fine. Those who are looking to jump into the market with no money down or without the income to support their purchase are more likely to be denied a loan.

How To Leverage A Bargain In A Buyer’s Real Estate Market

Foreclosed homes are expected to increase, which means buyers have many prospects available. Contrary to what real estate agents might show you, foreclosed properties are often more hassle than they are worth. Homeowners stop proper upkeep of the property, leading to a slew of home repairs. Many foreclosed homes in one area indicate economic trouble and can lead to a decline in the overall value of a community.

Negotiating is crucial -- remember you have the power. Homeowners who are struggling to make payments and need to move will be more willing to reduce the price, but be reasonable. Research desirable properties in your area, find what you want and take action. After all, now is the time to buy!

How And Why To Help Your Child Invest In A Home

A few years ago, the housing market was in a buying frenzy, with sales in high cost areas skyrocketing. Now, with the subprime mortgage crisis and an economic recession, sellers have flooded the market. As a result, housing is more affordable than ever. Is now the right time to invest in your child’s future with the purchase of a home?

Why Home Investments Help Your Child

A home is probably the largest asset you own, and although the value of the home may have decreased recently, the overall value is much better than renting. College debts, planning for retirement and investments are overwhelming for young professionals today. With that in mind, assisting your child with buying their first home means contributing to their financial future.

How To Help Your Child Become A Homeowner

The easiest way to help is by providing the down payment of a house. You act as the guarantor on the loan, while your child pays back all the monthly payments as opposed to paying rent. Those with enough cash can space out the payment as a gift, giving up to $12,000 a year without paying taxes. However, many lenders have gift restrictions, since they view it as a form of debt obligation that could interfere with mortgage payments. Get around this by giving your child the down payment prior to applying for a mortgage.

Parents with their own bills to pay can still help their child by cosigning a loan, which makes the lender feel more at ease knowing that someone else is also in charge of the mortgage. When real estate prices eventually go back up, you can sell the home and earn a profit, thereby getting your down payment back. Your child can get their share of equity to use on another home. Otherwise, he or she can continue living in the house, while you refinance the property to get paid back on your investment.

Looking Out For Your Child’s First Home And Yourself

If you are worried about your child not keeping up with his or her end of the bargain, ensure that he or she will have to move out and you can choose to rent the house or sell it. This is especially important for loan cosigners, since mortgage companies will go back to the parents, which could ultimately affect credit.

Set ground rules before entering any kind of agreement. Family is different from other business relationships, and while it may seem like a good idea to invest and help your child, he or she may not be financially suited for taking on the challenge of homeownership. Make sure everyone involved understand what is required in terms of payments and equity shares to prevent future misunderstandings.