In the first part, we talked about different real estate techniques for investors, including live-in-flip, real estate flipping, house hacking, and investing in Single-Family Rental (SFR) homes.
Now, we're going to learn more strategies to help aspiring and current investors like you!
Serving as a middleman between a home buyer and a home seller, real estate wholesaling involves either charging a fee for the service or keeping the difference between what the seller receives and what the buyer pays.
This frequently entails "driving for dollars," or scouring communities for properties the investor believes they may profit from. Investors may also employ MLS listings and direct mail marketing campaigns or they may just keep an eye out for For Sale By Owner (FSBO) signs.
Real estate investors can invest without actually owning any real estate by using REITs, or real estate investment trusts, which function as mutual funds. Investors purchase REIT shares in a manner akin to purchasing stock or mutual fund shares, and the trust pays dividends to its stockholders.
To allow citizens to engage in large-scale, income-producing real estate, Congress formed REITs in 1960.
All dividends given to shareholders by REITs are deductible from their taxable corporate income. According to the Securities and Exchange Commission's Office of Investor Education and Advocacy, the majority of REITs do not pay corporate tax since they distribute at least 100% of their taxable revenue to shareholders.
In general, REITs are thought to be a wise investment. The 40-year compounded annual return on REITs, as measured by the FTSE NAREIT Equity REIT Index, is 9.44 percent.
Groups that invest in Real Estate Investment Groups (REIGs) are associations of private investors who pool their resources and expertise to make real estate investments utilizing a variety of techniques. Contrary to a REIT, a real estate investment group is not a taxable corporation with a board of directors subject to stringent regulations. For instance, REITs must have at least 100 investors by the end of their first year, and no more than five people may possess at least 50% of a REIT.
In contrast, private agreements rather than governmental rules control real estate investment organizations. The structures, membership fees, and levels of engagement for REIGs are all flexible. Investors who want to have an interest in actual real estate may want to consider joining a real estate investment group.
Purchasing certificates of property tax liens is an indirect method of real estate investing. When a property owner doesn't pay their property taxes, the municipality where the home is located will file a tax lien, which is a legal claim on the property. It serves as a formal claim to the assets for the owed sum.
These don't resemble mortgage liens, which grant a lender the right to the property until the borrower repays the loan.
A certificate stating the amount owed and the interest rate that the lien owner will receive is issued by the municipality when a tax lien is placed on a piece of real estate. Following that, the certificates are auctioned off to investors; at the moment, 28 states permit the auction of these certificates. Property tax arrears amounting to over $21 billion annually, according to the National Tax Lien Association, making it a substantial area for investment.
When a bidder wins the auction, they pay the outstanding taxes and acquire the right to either foreclose on the property or receive their money back when the homeowner makes up the unpaid taxes. The homeowner has a set period to make the payment or risk foreclosure. The lien holder recovers their investment plus interest if the homeowner makes good on their payment.
Another real estate technique for investors is called BRRR or Buy, Rehab, Rent, Refinance, Repeat.
The plan involves purchasing a house, ideally below market value, rehabilitating it, renting it out to pay the mortgage, obtaining a cash-out refinance, and then using the profit to start the process over again.
This is not a method for beginners; rather, it is for seasoned investors because it includes finding amazing discounts on houses that need some renovation but are still profitable investments.
Since the investor will be paying the mortgage while the renovation is taking place, it is crucial to understand the costs and length of the repairs that will make the rental property appealing to residents. It's crucial to increase the property's curb appeal because kitchens and bathrooms often have the highest return on investment.
The next stage is to find trustworthy tenants to rent the property to for a rate that at least covers the mortgage payments until the investor can refinance. Before refinancing, banks typically need a "seasoning" time, and a cash-out refinance needs a particular amount of equity. Additionally, lenders rarely refinance an empty home, so the investor will need to have a strong credit score—typically 620 or higher—to qualify.
The investor continues the process by locating another contract. It is not a passive investing approach, even though it has the potential to be profitable. A network of lenders or the capacity to take out a home equity line of credit (HELOC) may be necessary for the investor since it may be challenging to obtain a typical mortgage on a distressed property.
This is a method for paying off debt on several rental properties so that you own them free and clear. It can also be used for real estate investing. Financial expert Dave Ramsey popularized it as a method of paying off personal debt.
The strategy includes:
The mortgage on the rental property with the lowest balance must get the largest monthly payment feasible using all available resources, including savings from a day job and all rental revenue. The investor will continue to earn the same amount of money when that is paid off, but there will be one less mortgage to pay off. The snowball grows larger with each mortgage that is paid off since the investor has more money to pay off the subsequent mortgage. Finding quality rental properties at competitive mortgage rates and practicing disciplined saving for the years necessary to carry out the plan are requirements of the strategy.
Although it might be a daunting task, decorating a home can be surprisingly exciting. After all, there are various choices to make. There are rooms to furnish, walls to paint and a decent quantity of upholstery, décor, and hardware to choose from.
Luckily, you're not the only one trying to create a beautiful space, and many interior designers are more than willing to provide tips on how to decorate a home.
So whether you want to give your house a quick makeover or take on a major renovation, these tips might help you!
One of the most economical decorative changes you can make to your home is painting the walls, and even painting one wall is a cost-effective (and incredibly cool) improvement.
To give your area a fresh look, get a basic slipcover as opposed to a brand-new sofa.
Consider what you should get rid of before worrying about what you can and cannot afford to acquire. Items that are out of date, worn out, or damaged may be ruining the appearance of your home. If they're not necessary, getting rid of them might offer your home a fresh start.
Instead of purchasing new curtains, upgrade your current set by adding an iron-on accent to simple curtain panels.
A room can be completely changed by framed images, which don't have to be pricey. Try your hand at creating your own work of art and frame it to hang alone or as a component of a gallery wall if you're truly up for the challenge.
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Faux plants can be used to create stylish décor at an affordable price. Choose a cost-effective solution, then present it on a lovely stand or in a custom-made pot.
Try to purchase it on sale if you have your heart set on something that is out of your price range. Get notifications or sales alerts from shops you want to get an email or SMS in advance if any of their items will reduce its price soon.
Cord concealers are available from reputable sellers like Amazon. Making your home appear effortlessly tidy and organized will depend greatly on if you can hide unsightly cords and wires from the TV or light fixtures.
Your garage's rusty wooden ladder might become your newest favorite decorative item. Use one to keep extra towels or throw blankets after cleaning it up with some sandpaper and possibly a coat of paint.
Purchasing used (pre-loved) furniture and home accessories is a terrific method to save money on items that would otherwise be quite expensive. You never know what secret treasures you'll find in a flea market or thrift shop.
You can give an old-end table a brand-new look with a little paint and creativity. Think about adding gold paint to the edge of a plain black piece.
Plates may make for some very stylish wall décor whether you never use the china from your wedding or the set you scored from an H&M sale. Install the customized plates on an empty wall for a quick update.
Want to add a beach vibe to your room? Then using a glue gun and jute rope, re-decorate an old vase or dish for a rustic touch.
The kitchen is one of the most utilized rooms in the house, so painting the cabinets will give it an instant facelift.
Looking for ways to decorate a home on a budget? Well, your wish is our command!
One of the cost-free decorating concepts simply needs creativity, time, and muscles. By rearranging the furniture, you can give your space a fresh feel.
Re-design a bookcase either by repainting or using removable wallpaper.
A new mirror hung above the vanity or sink is the fastest way to update an outdated bathroom. Luckily, there are many reasonably-priced options you can choose from online.
After your next dinner party, save a few wine bottles and turn them into unique vases. With a little hot water and soap, the labels come right off, leaving behind a slim vase suitable for containing a few fragile stems.
You can find affordable woven baskets at almost any retailer, online and offline.
Woven baskets are only good at keeping your space clutter-free; it also gives a quick Bohemian touch to the room.
Eclectic designs are frequently the simplest to reproduce across the board for interior design. Why? Mixing, not matching, is the key to this aesthetic. It will be far more economical to search for furniture and décor because there is no need to acquire a certain side table or that precise shade of blue.
These are just some decorating tips on a budget that you can consider. If you have more techniques, feel free to share them in the comments below.
Indiana real estate agents are accustomed to the bizarre, humorous, and downright odd. Whether it's a client using "creative" bargaining tactics or unexpected wildlife on a home tour, there are lots of humorous events that occur every day in real estate. But why stop at just anecdotes when there are so many things that happen every day that we can all laugh at? Here is a list of seven humorous incidents that all real estate professionals—real estate agents, brokers, and even some buyers—have encountered at least once. Let's check out each incident to see what makes it so funny.
Finding out that a possible seller does not know how anything in the real estate business works, not even how to get their house ready for sale, when you go to meet with them can be a humorous situation.
It can rapidly get complicated and funny to explain the differences between these two terms because many customers need assistance doing so.
Some clients may believe their real estate expertise is so wide that they are capable of doing your duties more effectively than you. Observing these buyers' attempts to outwit the experts is always interesting!
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This may be quite a comical sight, especially when their excitement wanes from too many property viewings.
There have undoubtedly been more occasions than we'd like to admit when animals have wandered into open houses or stopped by for a peep during home tours. Luckily, most clients just laugh at what happened.
With outrageously original proposals, counteroffers, and verbal sparring, both parties may become so engrossed in the negotiation process that it becomes humorous.
Everybody has a story of a client who said something hilarious or absurd, and the impulse to laugh is frequently unbearable! Any situation when you have to fight the urge to smile is hilarious!
These are just a few of the humorous incidents that real estate brokers encounter regularly. There are always surprises in this line of work, from uninvited visitors at open houses to heated discussions at closing tables. These instances may be hilarious, but they also serve as a reminder of how much realtors enjoy their work and how devoted they are to giving their clients the best possible service. After all, a good laugh occasionally is all that's required to seal the deal on a purchase!
The following time you find yourself as a buyer or agent in a humorous circumstance, keep in mind that everyone experiences these moments; therefore, embrace them rather than trying to escape them. Who knows, you might even come up with some interesting tales along the road.
When buying or selling a house, using a professional real estate agent can help you make wise choices and prevent expensive errors.
The good news is that the real estate industry is big. Realtors are everywhere. A quick online search on Indiana real estate agents might lead you to hundreds of results. The challenge, however, is finding the right one for you!
Lucky you! We've gathered all the necessary details you might need when searching for the best realtor to help you.
It's beneficial to be familiar with some of the common terminologies used when buying or selling a home and what to anticipate from an agent before you begin your search.
Real estate brokers assist buyers and sellers of homes. Agents inform their customers about the state of the market, walk them through every stage of the procedure, and refer them to other experts like home inspectors and real estate lawyers. The person they are representing in a real estate transaction determines the specific titles they have.
A buyer's agent assists purchasers in locating and exploring listed properties, crafting compelling offers, and negotiating with sellers.
A listing agent assists homeowners with setting a price, marketing, and negotiating with potential purchasers.
It is better to have someone who is only working for you. In some situations, an agent can represent both sides in a single transaction.
Realtors are not all real estate agents. Realtors are National Association of Realtors members who hold a real estate license. Members commit to uphold the standards and code of ethics of the association.
All real estate agents are required to have a license in the states where they operate and to follow local, state, and federal rules. Agents must finish a set amount of study and pass an exam to obtain a license. To find out whether a specific agent is licensed, you may visit the website of your state's real estate commission.
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A real estate broker has completed further training to advance from the agent level and obtain a real estate broker license. Brokers must pass an exam and finish the state-mandated courses to get licensed, much like agents. Brokers have the option of managing other real estate agents, working independently, or both.
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Find several potential agents by asking friends, family, and coworkers for recommendations. Visit the websites and online profiles of the agents, read about their qualifications and experience, and look through client testimonials.
Pick at least three agents to speak with, and ask them specific questions about how they would collaborate with you.
The following are the most important details to learn whether you're buying or selling a home.
You could believe that the real estate agent you select will solely work for you. Real estate agents aren't always required by law to exclusively represent the buyer or the seller in a transaction, though. A "transactional agent" works with both parties but has no fiduciary duty to either, while a "dual agent" represents both the buyer and the seller in the same transaction.
It's crucial to comprehend the agent's responsibilities when working with you. The Consumer Federation of America suggests requesting a written document that identifies the relationship and asking potential agents if they will only represent your interests during the entire procedure.
How long has the agent worked with clients, and what credentials does the agent possess? Find a representative who has experience working with people who are similar to you.
Indy Home Pros is the #1 RE/MAX Team in Indiana, therefore if you want a reliable real estate agent who will make the transaction smooth and seamless -- whether it's buying or selling a home -- then you should work with us!
Agents occasionally have team members working for them as assistants. Will you collaborate with the agency or the assistants more frequently? An effective team can meet your needs well, but be sure the agent will be available to you directly enough.
Real estate commissions are typically paid by the seller, and the listing agent distributes them with the buyer's agent. A real estate commission typically ranges from 5% to 6% of the sales price.
According to the Consumer Federation of America, if you are the seller, you might be able to negotiate a lower price, especially for a costly property. You, the buyer, have the right to request a refund of some or all of the buyer agent's commission.
It's worth asking even though agents might not be open to reducing their compensation.
Ask for references and speak with customers who have recently worked with the agent. Did they appreciate the agent's efforts? What was successful and what wasn't? How did the agent handle difficulties? To determine whether the agent is a suitable fit for you, speak with recent clients.
Here are some things to consider when picking an agent to assist you in purchasing a house.
What difficulties will I experience as a buyer in the current market? A smart realtor will describe the availability of listed homes and the level of competition you'll face with other buyers in order to set reasonable expectations.
How can you assist me in locating listed properties in my price range? Inquire about specific instances when the agent has assisted purchasers in your shoes in the recent past. This will demonstrate how effectively the agent will meet your needs.
How will you assist me in submitting bids that are competitive with those of sellers? Find an agent who will keep you anchored to your spending limit and objectives.
Here are a few things to consider when picking an agent to assist you in selling a home.
What comparable listings are there in my area? An agent should present a comparative market analysis, highlighting comparable homes that have recently sold.
Why do you believe my house is worth what you do? The greatest decision isn't usually the agent who suggests the highest price. Pick an agent who has market expertise to support the recommendation.
Depending on the local real estate market, you might need to do some repairs before you can sell your house. Keep an ear out for compelling arguments about the changes that your house needs and their potential return on investment.
Agents will probably advise listing your home on real estate portals like RE/MAX, Zillow and the Multiple Listing Service. Learn more about the additional marketing strategies the agent will employ, such as the use of images, video tours, and advertising. The market will determine how much marketing is necessary to sell a house. When there are more purchasers than available properties, marketing may not be as necessary.
Compare the backgrounds and methods of the agents, as well as their interpersonal skills. Will you feel at ease working with this person? Select a capable agent who shares your preferred working style.
Overall, choosing a real estate agent, broker, or realtor might require time and patience; however, it's crucial, especially when you want an agent you can trust and rely on. After all, you're going to invest a huge amount in your dream home!
You've made the decision to purchase a new house, and you're looking at all the new neighborhoods in your favorite places. Perhaps you've already decided on the neighborhood where you want to reside, but you haven't signed a lease. You'll want to negotiate the greatest price for your newly built home, regardless of where you are in the home purchasing process.
But before you do that, be sure to equip yourself with enough knowledge on what happens when negotiating the price of a home.
When purchasing a resale home, you must engage with the seller's sentimental attachment to the property. Thankfully, new home builders don't take that attachment into account.
Builders, however, typically don't want to sell their homes for less than what they are asking because it creates a negative precedent with potential buyers. They're thinking about things like overhead and profit margins, base construction expenses, and more, so they have a target sale price in mind to recoup the effort they've invested in the house.
You can save money on your new house in a variety of inventive ways that don't entail paying less. The builder might be ready to cover the closing costs. Additionally, you might be able to bargain for upgrades at a discount or for free.
You should also ask about the scope of lot premium costs. Lots within a certain community are frequently priced to appeal to a broad customer. You can save up money in your budget for other fees by asking the builder for more information if the lot premium turns out to be less than you anticipated.
>> MORE: How To Negotiate When Selling A Home
The model homes in a subdivision are typically offered at a bargain and are completely furnished with the greatest upgrades. There are a few causes for this.
First of all, a model home isn't a brand-new house because many people have already toured it. Second, you won't be able to choose finishes or upgrades because everything is already installed. If you like everything about the model home or if you're willing to make a few alterations after the sale, this isn't a problem. Third, because they have been used, appliance and foundation warranties won't be as long as they would be for a brand-new home.
Make sure to ask the builder whether there are spec homes—homes constructed with the intention of being sold—that have been sitting in their inventory for some time. Similar to model houses, you won't be able to choose the upgrades and finishes, but if a builder is trying to sell, there may be room to haggle over the price.
Tip: Ask -- there's nothing wrong about asking.
Your builder will probably want to direct you toward their recommended lender as soon as you begin to consider financing for your new house. Check to see if you have any incentives to use that lender, but don't stop there. Do your research and educate yourself. Their lender might not be providing you with the best mortgage conditions. Consult your bank or credit union; depending on your relationship with them, they may provide attractive rates and conditions.
Create a budget plan and stick to it. To do that, know your ideal location, price, and amenities, and in case one (or all of these) weren't met, be ready to either negotiate or walk away. Set expectations that are realistic.
Most likely, you won't be able to get a terrific price in a competitive market or short deadline. There isn't much that can be achieved from negotiation even outside of a seller's market if the neighborhood is selling quickly. Multiple bidders on a home can actually increase the final price by 3% over the initial listing price.
Due to the builder's desire to sell, homes that have been on the market for 45 days or more typically have lower prices or greater upgrading options. If you have a specific price in mind, this can be a useful approach to filter searches.
It's crucial to keep in mind that negotiations for new homes involve more than just the final cost. Upgrades, mortgage conditions, and price discrepancies on an itemized list can all make your house shopping trip more enjoyable.
If you need help negotiating with a home seller or want to know how you can have your dream home, our team at RE/MAX Advanced Realty Indy Home Pros is here to help.
You may call us at 317-298-0961 or send us a message here.
You've compiled a list of all the features your ideal house should have. You spent hours looking through real estate websites and planning the perfect route for a weekend filled with showings.
You're prepared to go into the challenging task of house hunting. There is one minor problem: you could not find a babysitter. Fear not if spending hours touring homes with your kids makes you want to give up before you even start.
Even if it's not ideal, you can effectively go house hunting with your kids if you give it some thinking and forethought. Finding your dream house may be a memorable and joyful family effort if you use these tips on house hunting below.
Here are the seven tips on house hunting you may need to know:
Pack extra clothes, toys, and snacks for your kids. Despite planning your route, you don't know what you'll encounter. You may be stuck at one house or need many rest stops. To avoid boredom, pack some toys or activities for your kids.
Bring a relative or friend along if you can't find a babysitter. When your friend watches your kids, you may concentrate on talking to a realtor about each house. If they get antsy throughout the day, a friend can watch them run around the house's yard instead of chasing them about the house.
If you're bringing kids, driving yourself and following your realtor is advisable. Many agents like to drive potential clients from one home to the next so they may discuss the residences. You won't have to transfer car seats and booster seats in your car, and your kids will feel comfortable.
Not all properties are child-friendly. You may be visiting a childless couple with many expensive antiques. Watch your kids so they don't get into the homeowner's stuff. Additionally, kids must follow the homeowner's no-shoe policy. Before entering, ask whether there are pets so you can watch the children.
House hunting with older kids is possible. Give them a paper and pen with a house-hunting checklist, and then let them check off each property you see. Let them write their house-hunting checklist about each house and discuss it while in the car on the way from one to another. They will be distracted by such a task at each house and feel like they are helping to find the ideal family home.
Despite your best efforts, house hunting with kids will be distracting. Get lots of pictures of each house you visit. To keep the images arranged between each house, take a picture of the mailbox address or the realtor's information page. After touring the houses, review the images as a family and add any missed things to your house-hunting checklist.
Realistically, your realtor and you may have planned the perfect day. Kid-related things do happen. You may need to stop for food or even a diaper change unexpectedly. Start your house hunting with a plan for longer than one day.
Need expert advice on selling or buying your home? Send us a message and we'll assist you!
Nowadays, TikTok has become the most widely used social networking platform. You can create content with this tool that is easy to watch and share with others.
If you use real estate TikTok videos on this social media platform well, you may create a community of fans who are eager to discover more about you as well as your business.
It also gives real estate agents many tools for creating and sharing helpful information. This platform doesn't require influencers to go viral. One relevant piece of content is enough to attract buyers.
Real estate agents are constantly using this platform to assist them in selling homes, as well as keep up with the real estate TikTok trends, learn new skills to generate popular real estate TikTok videos, and increase engagement.
Here are the five best real estate TikTok ideas you may need to know if your business uses real estate TikTok videos:
People appreciate the chance to learn more about you. You can choose from many real estate agents. Therefore real estate TikTok videos explaining why they should engage with you are amazing. Moreover, Tiktok's AI can enhance your real estate TikTok videos.
First-time homebuyers use their work and personality to make intelligent decisions. If they get to know you as a fantastic person, "agents just care about sales" will become "the trendy real estate agent who cares about teaching potential homeowners."
One of the most gratifying social media moments is a first-time homeowner getting their keys. So many videos are shared because they make people feel something. While buying property, don't be afraid to try new real estate TikTok ideas.
Your listings can be turned into virtual tours by adding some taps, no matter the cost. Add real estate TikTok trends, popular music, varying speeds, and cuts to make them more dynamic.
Lead generation can be achieved by showing only a few parts of the home or community and asking viewers to like the real estate Tiktok videos and view the following.
We know many questions about homebuying, so addressing them is a great way to interact with your community.
Add pictures of your most pressing and frequent questions to a video with your response. This way, your followers will know you've read their comments and be encouraged to keep talking.
Furthermore, use hashtags to gain on real estate Tiktok trends and expand your market.
Your followers want to learn about your business's good and bad customers. TikTok's most popular videos are people telling life stories. You offer much as a real estate agent specializing in sustainable living and quality houses.
This real estate TikTok Idea for real estate agents entertains and brings you closer to your audience while teaching new lessons regarding what to do and refrain from doing while buying a property.
Visit our website for more content like this.
Before you begin the home-buying process, having a fundamental understanding of common real estate terms will immediately provide you peace of mind and could save you a lot of money.
Before starting your home search, you should know the following common real estate terms 101.
Here are the ten common real estate terms you need to know before you proceed in the home-buying process:
When buying a home, the "buyer's agent" represents you, and the "listing agent" means the seller. One agent represents both sides in a dual agency.
Fixed- and adjustable-rate mortgages are conventional loans. The most popular fixed-rate mortgage is 30 years. Most adjustable rate mortgages have a 5, 7, or 10-year term.
The pre-approval letter from a bank, which estimates how much they'll lend you, should be obtained before you apply for a mortgage or even begin looking for a home. This letter will reassure home sellers that you can acquire a loan when necessary and assist you in figuring out what you can afford.
Real estate agents frequently use the term "listings" to refer to homes for sale. A "listing" on a website provides details about a property, such as the selling price and the number of bedrooms and baths.
After making an offer on a home, buyers must plan an inspection, which usually costs $500–$800, depending on the housing market. The inspector will inspect everything, including the plumbing, electrical, foundation, walls, etc.
Your lender will want an appraisal of the house you intend to buy once you apply for a mortgage. A certified appraiser will estimate the home's value using comparable properties recently sold in the neighborhood and examine the property.
As part of your offer to buy a home, you can include contingencies, which must be met before closing.
The following are some typical examples of contingencies:
In addition, there are many additional kinds of contingent clauses, all of which you and your real estate agent ought to discuss.
Your agent or attorney will assist you in making an offer on the right home. If the seller counters your offer, they normally would like more money or a faster closing date, so you'll have to negotiate. To modify your offer, include a cover letter explaining why you want to purchase the home.
Homebuyers might expect high fees. Closing costs, excluding the down payment, average 2-5% of the home's purchase price. Excise tax, loan processing, and title insurance are common fees.
You might get a home title report about a week after the seller accepts your offer. Most mortgage lenders need title insurance as part of the closing costs. Title insurers check public records to ensure the seller has title rights and no liens on the home.
Finally, we're done discussing the common real estate terms 101 that you need to know before deciding to buy a home. This article may help you a lot by considering real estate terms 101.
Not only is buying a home exhilarating, but it's also one of life's greatest accomplishments. There are many advantages to having your own property, even though it might be difficult at some point.
Renting, on the other hand, can be a terrific short-term option for deciding where you want to live and for accumulating funds for your down payment on a home loan.
So, which one should you choose?
In this post, we’ll help you decide whether having a home or renting out is for you.
There are several benefits of renting a home, some of which include:
Flexibility: Renting a home offers a great deal of flexibility as you are not tied down to a long-term commitment. Most rental agreements are for a fixed period, after which you have the option to renew or move to another location. This makes renting a great option for those who frequently change jobs or move frequently.
Lower Upfront Costs: Renting a home requires a lower upfront cost compared to buying a home. You typically only need to pay a security deposit and the first month's rent, whereas buying a home requires a down payment, closing costs, and other expenses.
No Maintenance Costs: When you rent a home, the landlord or property manager is responsible for any maintenance and repairs. This means that you don't have to worry about unexpected expenses related to repairs, which can be a significant benefit.
Access To Amenities: Many rental communities offer access to amenities such as swimming pools, fitness centers, and laundry facilities. This can be a great perk for those who want to enjoy these amenities without having to pay for them separately.
No Property Taxes: As a renter, you are not responsible for paying property taxes. This can be a significant benefit as property taxes can be a significant expense for homeowners.
No Need To Worry About Resale Value: When you rent a home, you don't have to worry about the resale value of the property. This can be a great benefit if you are not interested in investing in real estate or if you don't want to deal with the stress of selling a property.
Increasing Equity: The value of the property you own represents your equity. When you pay off your mortgage or when the market value of your property rises, equity might naturally increase. Making additional mortgage payments can also help it grow.
If you've made additional payments to your loan, you may be able to redraw it or refinance for a cash-out. The money can then be utilized for remodeling, purchasing a new vehicle, or even as a down payment for a different home.
Living Security: The landlord, who may decide they no longer wish to rent out their property, is in charge of your position when you rent. Relocating is expensive, inconvenient, and emotional, to say nothing of all three. When you own your own house, you can rest easy knowing that you get to choose when to relocate.
Build The Home Of Your Dream: You can opt to completely redo the bathroom with a jungle theme or to paint the walls in vibrant colors without worrying about getting your bond back when you own your own property, giving you total creative freedom. House upgrades can raise a property's value, thus every dollar that your house has appreciated will be yours if you decide to sell. Get our guide to getting your home renovation off the ground.
Cost Management: Your rent may be increased regularly if you rent. While owning a home entails a variety of costs, including mortgage payments, council fees, and strata or property insurance, these costs are not likely to increase significantly overnight.
By selecting a fixed-rate home loan, you might in some cases even be able to keep your rates under control.
Save Cash: Although it may not seem like it, you might save money by making your mortgage payments. Many repayments combine principle and interest, allowing you to contribute some funds to expanding your home's ownership. Although renting could appear to be less expensive, you won't eventually get any of that value back.
Nonetheless, it has its own pros and cons. If you want to learn more about it, feel free to click this link or subscribe to our mailing list.
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Famous actors like Leonardo DiCaprio, Oprah Winfrey, and Arnold Schwarzenegger invest in real estate; meanwhile, some celebrities don't just help flip houses but also, get their very own real estate licenses.
Some do this as part of their hobbies while other actors simply want to achieve their dream as real estate moguls. Below are celebrities who are real estate agents, too!
"I got my real estate license because I didn't want to work in a restaurant in New York, as a summer job. So I thought, I'll work in a real estate office," the WandaVision actress shared in an interview with W Magazine. "I was dealing with my sister's friend who was a realtor, and I dealt with his rental clients. And I would mispronounce streets in New York because I had just moved there, all the time."
NEW YORK, NEW YORK - OCTOBER 10: Elizabeth Olsen attends BuzzFeed's "AM To DM" on October 10, 2019 in New York City. (Photo by Dominik Bindl/Getty Images)
"I got my real estate license today!!!! I really can't believe it!!!," the Dancing With The Stars actor captioned while holding a letter and posing for an Instagram photo. "Not too many people know this but I've been studying for quite a while, and I've had a passion for real estate all my life."
"Real estate broker in training," the Real Housewives of New York actor used as a caption when she revealed that she’s joining Douglas Elliman as a real estate agent. Along with it is a stunning photo of her standing in a glass-walled building showcasing a beautiful New York sunset.
"I found myself in a three-year depression, very, very depressed, and I lost everything pretty much, everything except for my children. It was just me and the kids, and I had to get back up and fight for my life, and I chose real estate...I signed up for real estate to provide for my children. This is a real job for me, this is what I have, and this is what I'm committing myself to," the Former Playmate revealed as she got her license in 2020.
WEST HOLLYWOOD, CALIFORNIA - AUGUST 02: Kendra Wilkinson attends Los Angeles Travel Magazine's Endless Summer Issue Release Party at Penthouse on August 02, 2019 in West Hollywood, California. (Photo by Tasia Wells/Getty Images)
"I feel very lucky to have such a diverse client base, and now I have the advantage of breadth of experience with Douglas Elliman," the former Real Housewives of New York shared after becoming a real estate agent in August 2019. "They are the strategic partner in all of my real estate endeavors."
NEW YORK, NY - OCTOBER 08: Kelly Bensimon attends QVC presents "FFANY Shoes on Sale" at Waldorf Astoria Hotel on October 8, 2014 in New York City. (Photo by Jamie McCarthy/Getty Images for QVC)
"I used to be a real estate agent, that's how I met my late husband, Richard Medley. I got him his townhouse," The Real Housewives of New York City actor shared in a Times Union interview in 2019.
NEW YORK, NEW YORK - FEBRUARY 04: Dorinda Medley attends Woman's Day Celebrates 17th Annual Red Dress Awards on February 04, 2020 in New York City. (Photo by Bryan Bedder/Getty Images for Women's Day)
Kyle Richards’ husband did not just sell houses as a real estate agent; he’s also a Founder and CEO of The Agency, a $1 billion brokerage that aids brokers and their clients in achieving their real estate objectives via the use of cutting-edge technology and creative marketing techniques.
LOS ANGELES, CA - MAY 14: Mauricio Umansky attends the 2016 MOCA Gala at The Geffen Contemporary at MOCA on May 14, 2016 in Los Angeles, California. (Photo by Jason LaVeris/FilmMagic)
"I'm going back into real estate. I've signed up with a luxury real estate agency," the former ROHC star shared in an interview on RealiTea With Derek Z. She claimed she has maintained her real estate license over the years and has made the decision to try her hand at the industry once more after leaving the Bravo series.
SANTA MONICA, CALIFORNIA - JUNE 02: Tamra Judge attends the 2022 MTV Movie & TV Awards: UNSCRIPTED at Barker Hangar on June 02, 2022 in Santa Monica, California. (Photo by Axelle/Bauer-Griffin/FilmMagic)
These are just some of the public figures and celebrities who are real estate agents, too. Do you know anyone else who made a career out of selling real estate? Feel free to share their names in the comments
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