Category: Real Estate

Taking advantage of your home’s equity is one of the best ways to get your hands on cash that you can use to boost your finances or pay for emergency renovations. However, you need to be extra careful before you tap into that roof above your head. HELOC or home equity line of credit is one of the most common choices available to access your home’s equity.

Below are some instances when HELOC can be a good idea.

Emergency Cushion

The unexpected can always happen that may put you in some sort of financial emergency. A HELOC may serve as that much-needed additional cushion that can cover that expensive car repair with no need for you to take out anything from your savings.

Down Payment for a Second House or an Investment Property

Yes, a HELOC can be used for buying that second dream house or that coveted investment property. If your existing house has lots of equity built up and you need a down payment for a new property, HELOC is your best answer.

Home Improvements

It is probably one of the most common uses for HELOC. Home improvements in the form of repairs or renovations can boost or maintain your home’s value. Some of the popular home improvements that generate high returns on investment include bathroom remodels and additions, kitchen remodels, siding replacement, and others.

New Business Venture

When your capital for your new small business is a bit short, a HELOC will be able to provide you with the necessary funds. Getting a HELOC is often easier and faster than unsecured loans or lines.

Pay Down Debts

A HELOC’s interest rate is often lower compared to the usual credit card debts with high interest that people often struggle with. Consolidating high-interest debts and paying them off using HELOC can make your payments simplified and lower interest costs.

Pay for Special Occasions and Events

It is also a good idea to use HELOC to pay for the wedding of your child, prepare for a new baby, or fund that dream vacation for your wedding anniversary.

Pay Long-Term Care Expenses or Medical Bills

With healthcare being a serious concern now more than ever and with many people not having access to the best health insurance, you can count on your HELOC to be of great help. You can use it to pay off several medical bills so you can focus on paying off your credit line.

Pay Student Loans

If you still haven’t paid off your student loans, your HELOC can be a great way for you to pay them off once and for all.

Pay for Tuition and Other Educational Expenses

A HELOC will also help you manage school-related costs so you can access the necessary funds as and when you need them.

Although all the above reasons are wise and ideal uses for a HELOC, again, it is important that you give it careful thought to prevent regretting your decision and putting your home in jeopardy.

 

It is expected that the housing boom today will flatten by 2022 or even by early 2023 as the rates of mortgage interest increase. The truth is that there is actually no bubble that will burst here although prices might back down from the highs of panic buying.

Is There a Housing Bubble in the First Place?

The market boom led to bids beyond asking prices, frantic purchases, and lots of worry among aspiring homeowners. However, this cannot be considered as a bubble. A housing bubble is not only a mere rise in prices for at the same time, there is also a demand that basic economic factors cannot justify. The reason behind the buying boom is the change in the preferred type of housing on top of the low mortgage rates.

Mortgage rates reached what used to be the all-time low of 4% back in 2011, lingering within this range until the COVID-19 pandemic when they reached 3%. The declined mortgage rates last 2020 further cut down monthly house payments by 12%  that allowed most people  to purchase houses sooner than  later.

Aside from the low mortgage rates, there are also people who saw that remote work will continue in the future .These people craved for additional space and as a result, they felt the need to relocate to single family houses from their smaller and cramped apartments. There are also found it less fun to live in urban areas so they moved to the suburbs where it is common to see more houses than apartments.

Just as predicted, housing prices rose because of the increased demand. However, the supply wasn’t able to adjust as quickly as the demand. The second half of 2020 saw a ramped up production among home builders but supply constraints occurred after several months.

Ready-to-build lots were purchased, construction labor was tricky to find, and workers become less productive because of social distancing. Back-order goods and rising prices of materials squeeze profit margins and this paved way to the current housing boom.

Will the Boom End Soon?

Once again, this current boom is not really a bubble since the increased prices can be explained easily by the basics of limitations in supply and affordable mortgages. Recent housing starts are lower than historical averages although the lower population growth justifies it. However, with the shift to single family from multifamily homes, current levels of construction make sense. Sudden drop in the new constructions is not necessary to maintain reasonable equilibrium.

Is this boom going to end soon? The two secrets here are mortgage rates and meeting the new demand. Young families were able to purchase houses earlier than they might have been able to otherwise because of the low mortgage rates.

It didn’t change the buying economics for people who won’t become homeowners at all. The low mortgage rates instead allowed people to make their dreams come true earlier than what would have been otherwise.

This means that the 2020 and 2021 strong housing market borrows from the future. But, the change in preferences to suburban living from urban living by people who could have purchased houses in the past will become a new demand for good. That is, as long as they don’t get disillusioned when it comes to homeownership.

 

Some homeowners are often surprised to realize that the work itself is not really the most challenging part of a home renovation project. Instead, it is not knowing where to find reliable contractors who can competently do the job.

No matter how good your DIY skills might be, hiring a contractor is often necessary, especially for bigger and more serious works. If you are looking for the best contractor to work with, here are some of the top places where you can find one.

Angie’s List or Thumbtack

Platforms like Angie’s List and Thumbtack let you search for the most reputable contractors online. In fact, Thumbtack also allows you to send out a blast notification to all local contractors in your place to request for bids. It offers you some leverage to find the best deal for your budget.

However, one common disadvantage of these websites is that the listed contractors might be on the more expensive tip of the spectrum. Make sure you consider how much you are willing and prepared to spend before you search on these portals. If you fail to find the one that meets your budget, it might be better for you to search for other cheaper options.

Craigslist

Although Craigslist might not really be as reliable as its Angie’s List, this is another great place where you can search for contractors, particularly those that offer more affordable services. If you will be going down this route, you will be do yourself a big favor if you request for references from  past clients and photos of previous work. The most reliable contractors will already have all of these prepared in advance.

Local Grocery Store

Ads and flyers on the corkboard of local grocery stores usually advertise services cheaper than the rest of the options available. If you cannot find the specific service you need there, you can make a flyer of your own that advertises that you are looking for a contractor. If you ever hire a contractor you found from a flyer, be cautious when approaching one. Always ask for pictures and references.

Yelp

Yelp has now optimized how people do reviews to allow people to share their opinions to the public about pretty much everything. During your search for a contractor, you have to check if the company has reviews on Yelp. The people who leave their feedback are usually the most passionate about a certain company, whether positively or negatively, so you could get a good idea about the people you plan to hire.

Word of Mouth

Despite all the technological advancements, word of mouth still remains as one of the best and easiest ways to look for and hire the right person to do the job. If you are gearing up to hire someone for your project, you can seek advice from people in your own circles such as those from your community center, office, or church.

There is a big chance that some of them have worked with contractors before so they can point you to the right people. Now, don’t just hire the nephew of your colleague because he is getting started with plumbing during summer break. Use your discretion before you take advice from peers.

 

 

Once you are finally ready to buy your own house, you will have several choices to choose from. These include apartments, condos, townhouses, or single-family houses.

Single-family houses are popular options because you will be getting an independent structure that is not attached to the properties of your neighbors. You will be the proud owner not only of the house but also the land where it is built on.

However, is this kind of property really worth it? Should you purchase single family houses?

There are actually many perks and benefits associated with single-family houses as compared with apartments, condos, townhouses, or other housing options. It doesn’t matter if you are searching for the best home for your family or you are looking for a new and profitable real estate investment, the following are some of the advantages of a single-family house.

Access to Various Communities

You can find single-family houses on almost all communications including urban, suburban, and rural areas. Apartments, townhouses, and condos are not often found in rural and suburban areas.

You Can Customize and Make It Yours

With single-family houses, you own the interior and exterior of the space, giving you more freedom when it comes to designing your home.

Although multi-family units such as townhomes and condos can also be customized, there is nothing that says “your home” quite like single-family homes. These houses consist of just a single property unit with just one family that owns the land that sets it apart from other options. It gives homeowners the perfect chance to create a house of their own on their own piece of land.

You Get a Yard of Your Own

Speaking of land, single-family houses are usually but not always bigger than apartments, townhomes, or condos. They also usually have more outdoor space. Single-family houses have bigger yards compared to attached townhome and condo units.

On top of that, the surrounding yard of single-family houses is private, which means that you won’t be sharing common areas with your neighbors. It provides better advantage for those growing families that have kids who love to play outdoors.

More Private Space

You can expect your space to have more privacy if you don’t have any neighbor that is physically attached to your house.

Unlike those multi-family units, a single-family house offers more privacy from neighbors. It is among the most obvious reasons to buy single-family homes. It gives you the freedom to live as you want with no need to worry that your neighbors will be disturbed. Conversely, since there are no shared floors or walls, it is also less likely for you to hear the noises of your surrounding neighbors.

From the freedom to create your very own personalized house to having a private yard, it is easy to see that single-family houses provide several hard to beat unique benefits. So, when the time comes that you are finally ready to buy your first house, you can be sure that a single-family home will be worth it.

 

Rehabbing your home is not a cheap project. The cost can easily add up, from installation to buying all your new furniture pieces, appliances, and décor. But, this doesn’t mean that you shouldn’t do the necessary updates at all.

Below are some quick expert tips on how to rehab a home under $10,000:

Go for Salvage Materials

There are salvage stores where you can buy donated and leftover materials and supplies. You can also find appliances with below-retail prices as well as used furnishings and building materials. Good resale materials are also available at auctions.

Install a Steel Entry Door

It will cost you less if you replace your battered front entry door with a brand new steel door instead of a wooden one. It will give you a return of up to 91.3% of your total investment. High-end steel doors with sidelights are priced at only $1,000 to $3,000 as compared to high-end wood versions that cost more than $4,000.

Ceramic Tiles are Better Than Stone

Ceramic tiles are the exact replicates of stone tiles but they come at a cheaper price. They are not like artificial wood flooring that lacks the texture and warmth of the real thing. High-quality ceramic tiles cost as much as $5.50 for every square foot although it can go as low as less than $1 for every square foot unlike natural stone flooring priced at $10 for every square foot. Installing ceramic tiles is also typically less expensive.

Choose the DIY Route

Home rehabbing labor can get very expensive so you will be able to save if you take on some of the work yourself. For example, you could save a few hundred dollars if you tackle a 2-hour painting job on your own. However, make sure you only do those jobs that you know you won’t mess up. Homeowners will be able to save cash through doing the demo on their own and letting the contractors deal with larger projects.

Settle for Vinyl Windows Instead of Wood

Unless your goal is to have the same historical accuracy of older houses, vinyl windows are better than window if you want to save on maintenance and money and earn up to 5% bigger return on investment. Vinyl windows have an average price of $130 to $500 each unlike wood windows that cost $150 to $800. While insulated vinyl frames cost more than those that are non-insulated, these have the same level of energy efficiency as wood so you can save on your cooling and heating costs.

Buy Your Cabinets from the Maker

Homeowners who can install cabinets on their own can save more if they bypass retail stores. You can save up to one-third on your cabinets if you buy them directly from the manufacturers.

Consider All the Different Ways To Save

Lowering the costs of rehabbing your home is not just the only way for you to save money on such projects. Projects that will help boost the value of your home can also increase equity and return more than how much you spent on them in some instances. Don’t be afraid to try renovations even though they might be expensive as long as they are worth it in the long run.

 

While homeownership is one of the most exciting things that can ever happen in your life, this also comes with some very real and serious responsibilities, particularly regular maintenance and repairs.

Surely, some of you might have been blessed with the skills required for putting down tiles or fixing leaky sinks. However, for many homeowners, these jobs are best entrusted to the hands of experts. This is where handymen come in handy.

Before you hire a handyman who can help you with any project around your home, it is important to look for someone who got the skills for getting the task done and is also trustworthy. You also have to make sure that the price is fair.

Letting a stranger into your home to do the job is never an easy decision. Check out the following tips and tricks on how to find reliable handymen.

Look for Certifications

As you interview potential candidates, be sure to ask about the certifications that they have. For example, you have to check if the prospect handyman has been certified with the local association of handymen in your area. These certifications can give you the assurance that you will hire someone who is professional, knowledgeable, and can provide customer care.

Keep an Eye Out for Communication Skills

It is best to avoid handymen who cannot communicate with you well. It is a must to work with someone who will be able to give you a clear explanation of the work he is doing and offer a timeline for its expected completion.

Prepare the Necessary Contracts

You should never hire a handyman with no signed agreement of the rates, responsibilities, and others. You can come up the contract yourself or look for a contract template online. These contracts can provide you some level of protection, particularly if this is the very first time that you will work with a certain handyman. It is also the best time for you to inquire about the project’s warranty.

Request for Free Quotes

Remember that you don’t need to pay just to receive a quote. These days, it is common courtesy to receive free quotes. You should never waste any minute on a handyman who already asks you for money just to see your property.

Gauge the Honesty

One of the best signs of a reliable handyman is someone who is honest with you all the time. If they have never tried building a deck before, the last thing you want is for them to handle the project. You would like a handyman who will point you to someone else to do the work.

Verify the Insurance Coverage

It is usually best to ensure that the handyman you will work with is insured so they will be covered in case they accidentally cause damages to your property or get hurt during the job.

Inquire about Receipts

Ask ahead of time if the handyman offers a receipt. There are reasons why you should do this. First is the fact that these receipts let you monitor the flow of money and offer proof of the contract’s completion. One more reason for getting a receipt is that you can use it for verifying a tax deduction when you are paying for work on a home office or investment property.

 

You probably want to rehab your house to make it more energy efficient, improve its value, or simply to change its appearance. Whatever your reasons might be for rehabbing your house, the whole process will begin with deciding how much you will spend for the project.

How Much Does Home Rehabbing Cost?

Your property’s size and the overall extent of the works required will directly affect the price of rehabbing your house. The best and easiest way to settle on your budget is to come up with a list of all priority items then divide the list into nice-to-have and must-haves.

For example, if you have older windows and doors that are not in their tiptop shape anymore, installation of new windows and doors must be included on your must-have list. Meanwhile, if new tiles are not urgently required for your house, this one can be added to the list of nice-to-have.

The second step you need to take is to get quotes from several builders for you to get a more realistic idea of all the involved costs. It is best to go for installers and builders that provide a free consultation and quote so you will be able to save more money as you come up with your decisions.

After you have evaluated the quotes depending on the extent of work, professionals suggest that you add another 10-20% to form some buffer for overspends that are quite common even in renovation projects with the most exact pricing. For example, if the average price is about $30,000, you might want to have a contingency of $3,000 up to $6,000.

Be sure you use your property’s market value as a good starting point to calculate the costs of rehabbing a home. The general rule of thumb here is that the amount that you spend on renovations must not be over 10% of your home’s current market value.

How to Budget for Cosmetic and Structural Home Renovations

Full structural rehabbing of your home will obviously be more expensive than cosmetic rehabbing. In cases like this, the rule of thumb of 10% for renovations might no longer be applicable. Property professionals estimate that these full structural renovations can cost you as much as 40% of your property’s current value.

This means that if your house is worth $500,000, fully-finished structural rehabbing can set you back up to $200,000. It can include changing the roof, moving walls, installing new windows and doors for improved functionality, updating the floor plan, the cost of hiring a builder or architect, and more.

On the other hand, cosmetic rehabbing like changing your bathroom or kitchen fittings and fixtures or applying a fresh coat of paint on your house will not cost you over 1-5% of your property’s value. If you want to add more value to your house before you sell or rent it, cosmetic rehabbing is often enough for the job.

It is always recommended to talk to the experts before you start any rehabbing job in your home to know how much it will cost you.