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5 Tips to Help You Be the Perfect Home Seller

You may think your home is the only thing that has to impress when you put it on the market for sale. The reality is, you, the seller, also have to make a good impression. While someone may fall in love with your home, they may choose to pass on it if they don’t like the way you present yourself. To help you be on your best behavior when you sell your home, follow the tips below.

1. Be Scarce

One of the biggest turn-offs for buyers is a seller who hovers over their shoulders as they tour a house. If you are present when potential buyers visit your home, they may not feel free to ask certain questions, and you may say something that could jeopardize a sale. The best thing you can do is let your agent show your home on your behalf while you relax someplace else.

2. Give Up Your Parking Space

A good seller wants a potential buyer to be able to picture themselves living in the home. You can help further this image by allowing buyers to pull up in the driveway and park as if they own it. When you leave the house for a showing, be sure to take your vehicle with you, or, if you’re not driving, move your car to the street to allow buyers the V.I.P parking spot.

3. Take Your Pets With You When You Leave For A Showing

The buyers who come to your home for viewing might be animal lovers, too, but you should always take your pets with you when you leave. First of all, you won’t know if the buyer actually likes pets, but even if they do, you don’t want your cute little fur baby to steal the show and draw attention from the home. If you have pets, do your best to make it appear (and smell) as if your home is pet-free.

4. Place Important Documents In Plain View

Because you’ll be leaving when potential buyers come to view your home, you’ll want to place important documents such as the home inspection report, home warranty, and appraisal on a table for easy viewing. This will let buyers know you’re a responsible owner and seller who has nothing to hide. You can also include recent utility bills to give them an idea of monthly expenses and proof of any major repairs or renovations you’ve made recently.

5. Don’t Pressure The Buyers For Feedback

You may be excited to hear a buyer’s feedback right after a showing, but a good seller gives the buyer time to process what they’ve seen and make a decision. Remember, this is likely the biggest purchase they’ve ever made, so let them have a few days to think it over before expecting feedback or an offer. Your home isn’t the only thing that needs to impress buyers when you put it on the market for sale. You have to be a good seller, too. Following the tips outlined above will help you become the kind of seller homebuyers like to deal with

5 Factors that Make your Home Worth More

Whether you’re selling your home or buying one, you should know what things to look for in terms of value. For instance, did you know that where a home is located can impact its worth? If you’re going to be selling your home anytime soon, it pays to pay attention to a few universal factors that might influence its value. Here is a list of things to consider.

1. Location

Being located in a quiet neighborhood or near popular amenities such as restaurants and grocery stores can make a home worth more. Not every buyer needs a home to meet every location requirement, but if you can say your home is situated in or near things people deem important, it will retain its value better. On this same note, if your home is located near schools, daycare, or even a school bus stop, it will be more attractive to buyers with children or who plan to have children, making it worth more, especially if it checks other boxes for them, too.

2. A Beautiful View

Can you look out your window and see a beautiful skyline? If so, your home may be worth more. Being able to look out a window and see something lovely calms the nerves, and buyers appreciate that. On the other hand, if you look out your window and all you see is your neighbor’s house, a flashing neon sign, or some other unattractive view, it could bring down the value of your home, too.

3. Curb Appeal

If your home looks nice from the outside, it will retain its value better. If you mow your lawn, landscape your yard attractively, and maintain the exterior of your home, it shows you’ve kept the property in good shape. Curb appeal works both ways, however. If you don’t maintain your yard or the exterior of your home, the overall value will be less.

4. Major Systems

No one likes to move into a home and immediately have to shell out money to fix any heating, cooling, plumbing, or electrical issues. Selling a home with issues like these is usually the result of neglected maintenance and will subtract from the home’s value. If you know your home has issues with any of its major systems, be sure to fix them before putting it on the market for sale to get the most out of its value.

5. Storage

A home with lots of storage is usually worth more than one that doesn’t have enough. If your home has plenty of closets, cabinets, and drawers, as well as basement, attic, and/or garage storage, buyers will be willing to pay more for the convenience. Many factors influence the value of a home, with the 5 listed above being just a start. Be sure to keep these things in mind as you set an asking price for your home as it could be worth more (or less) than you think.

5 Tips For A First Time Home Buyer

Buying a home is quite possibly the biggest purchase you will ever make. If you’re a first-time homebuyer, there’s a good chance you’ll get frustrated at some point. Fraught with confusing lingo and surprise costs, the whole process can seem overwhelming at times. To help make your home buying experience a little less stressful, we’ve put together the following five tips for the first-time homebuyer.

Start Saving Early and Check Your Credit

The home buying process starts long before you actually begin actively searching for the perfect house. The average mortgage lender requires a 20 percent down payment, although many first-time homebuyer programs allow for as little as 3.5 percent. Be aware, however, that lower down payments often force you to pay for mortgage insurance, so it’s best to be prepared to put down as much money as possible to get the best deal. Your credit score is one of the most important factors lenders look at when determining whether to finance your mortgage or not. Check your credit score before starting your search for a home, and do your best to dispute any discrepancies and take care of any outstanding debt as soon as possible. It’s also very important to halt all new credit activity if you plan to buy a house anytime soon. Opening any new lines of credit such as credit cards or auto loans cause a slight decrease in your credit rating when the lender does a hard inquiry.

Figure Out How Much House You Can Afford

Many first-time homebuyers make the mistake of buying a home based on the idea that their income will increase in the future. This often leads to higher mortgage payments than they can comfortably make while they wait for their income to go up. Play around with a mortgage affordability calculator to figure out what you can afford based on your income now. You can always sell the home and upgrade as your income increases in the future.

Explore Your Down Payment and Closing Cost Options

One of the biggest problems people have with purchasing their first homes is coming up with the down payment. Luckily, there are many options available for a first-time homebuyer that decreases the down payment amount to as low as 3 percent. Many new homebuyers mistakenly give little consideration to the closing costs associated with their mortgage. These expenses can add up to thousands of dollars, so it’s a good idea to consider your two options here: pay them yourself or have the seller pay them for you. Both options have pros and cons, so discuss them with your lender to find out which works best for you.

Shop Around for the Best Mortgage Rates

Shopping for the best mortgage rates is just like shopping for anything else. You wouldn’t hire the first contractor you call to fix your roof, and you shouldn’t go with the first mortgage lender that gives you what sounds like a good deal either. Gather mortgage rate quotes from at least three lenders before deciding which one fits your budget and your needs best.

Get Pre-approved

Sellers like to see that you’re serious about buying their property. Before heading out to find your dream home, take the time to get a pre-approval letter from a lender that states how much they are willing to lend you and at what terms. Not only will you have an upper hand over other buyers who haven’t completed this step, but you’ll also have a better idea of how much house your lender is willing to finance in your name.

Thinking of Buying a Rural Home? Here are the Pros and Cons

Rural homes have a reputation for being large, airy, and downright homey. The lifestyle is often depicted as laid-back and freeing where quiet reigns king and things move at a slower pace. For some people, country living is ideal. For others, however, it’s boring. Rural living isn’t for everyone, so whether you’re thinking of purchasing a rural home for investment or living, here are a few pros and cons to consider.

Fewer People Means Fewer Public Services

One of the reasons people love living in a rural area is the fact that there are fewer people. Your closest neighbor may be a mile or more away. While this affords plenty of privacy and quiet, it also means there are fewer public services available nearby. If you’ve lived in urban areas all your life and are now considering moving to a rural home, you must realize you’ll need time to adjust to this lesser level of public service nearby.

Fewer Business Opportunities

If you’re planning to live in a rural home, you’ll likely have to make a longer commute to work since there are fewer business opportunities close by. On the other hand, if you’re planning to use the rural home as an investment property, it’s important to have clear expectations when it comes to renting or selling it as it’s likely to sit vacant and/or for sale longer for the same reason.

Fewer Restrictions

Urban properties often come with a plethora of restrictions in terms of property development. Rural properties, on the other hand, often have fewer restrictions, giving the owner more leeway when it comes to land development. Furthermore, when it comes to listing rural homes for sale, the listing regulations are less strict than those for urban properties in cities like Los Angeles or New York.

More Opportunity For Land Development

Strategically purchasing multiple rural properties gives investors more opportunities for extending land development, increasing their profitability as a long-term investment. Should the investor decide not to pursue development, the rural property(ies) typically garners a profit when sold.

Cheaper Purchase Prices

Rural properties are typically cheaper to buy than their urban counterparts. As an investor, you can expect to pay about half what you would pay for an urban home of the same size. This makes it extremely easy to buy more than one property at a time and still stay within your budget.

Less Competition In The Market

Recently, there has been an increase in rural properties for sale with a lack of interest from investors, which means there is less competition in the market for purchasing these properties. This factor also drives the prices lower for these properties, making them prime investment opportunities. It takes the right type of person to reap the benefits of investing in or living in a rural home. If you’re thinking of buying a home in the country for either reason, the pros and cons listed above may help you decide whether or not the purchase is right for you.

Underground vs Aboveground Pools. Which One Should You Get?

Deciding between an underground (inground) and aboveground pool can be difficult. Here are several factors to consider if you’re thinking of installing a pool on your property. 4 Important Factors To Consider Before Getting A Pool

Cost

Underground In general, the cost of an underground pool is going to be significantly higher than that of an aboveground pool. You can expect to shell out $30,000-$70,000 for a complete inground pool. Now, you may have seen ads in your local newspaper that say you can get an inground pool for just $14,999. While it may only cost that to install the pool itself, everything else that goes along with it is extra. These extras include decking around the pool, electrical hookup, grading/landscaping, and accessories like heaters, covers, generators, etc. Aboveground Aboveground pools consist of three main parts: the pool kit, the installation, and the decking (if any). You can expect to pay anywhere from $4,000-$12,000 (installed) for an aboveground pool. This price may not include decking, but it’s likely you’ll spend more on decking than you do for the entire aboveground pool.

Size

Aboveground pools can be just as big as underground pools. The downside to an aboveground pool, however, is that you’re usually limited to a single depth, whereas with an underground pool, there are often varying depths from one end to the other.

Maintenance

When it comes to caring for an inground or aboveground pool, there really is no difference. Both require cleaning and regular maintenance, but if your aboveground pool doesn’t have decking around it, it can be harder to clean from the outside.

Longevity

Aboveground Aboveground pool structures can last up to 15 years, with their liners needing replacing every 5 to 9 years. Inground How long an inground pool lasts depends on the type. Vinyl – a vinyl inground pool’s structure will last a long time, but the liner needs replacing every 5 to 9 years. Fiberglass – fiberglass pools last up to 20 years. Concrete – concrete inground pools last indefinitely but need to be resurfaced every 10-15 years. Getting a pool is very exciting as it gives you a fun way of fighting the heat of summer. If you’re on the fence as to which type of pool is right for you, we hope the information given above helps you make a decision. Good luck and have fun this summer in your new pool!

Services You Should Get Before Moving In

Moving into a new home is an exciting time, but that shouldn’t keep you from paying attention to possible issues with the property. If your home is more than a few years old, it’s likely there could be issues you can’t see. As such, it’s a good idea to consider a few professional services before moving your family in.

Electrical

Older homes sometimes have outdated electrical components that are inefficient and potentially dangerous. Old wiring can cause electrical fires in some cases, so it’s important you hire an electrician to inspect the home’s electrical system and correct any problems before you move in. In many cases, a homeowner won’t be able to sell a home with outdated electrical components, but it’s your responsibility to make sure everything is up to code and safe before moving into your new home.

Plumbing

Small plumbing issues can become big headaches if they aren’t addressed quickly. A plumber can inspect your home’s water and sewer pipes and fix any issues he finds. In some cases, you might be able to fix small problems (like a leak under the kitchen sink) yourself, but for a good bill of health on the home’s entire plumbing system, it’s best to hire a professional.

Heating And Cooling

Many homes have an HVAC system that needs to be inspected regularly. Before moving into your new home, this is a necessity to ensure the system heats and cools your home efficiently and that the ductwork is clear of any allergens and/or debris. You can do some of the work yourself (changing filters, clearing the area around the unit), but to ensure everything is in proper working order, it’s best to have an HVAC technician come in and inspect the unit. The technician will change the filters, ensure the unit is working well, check the thermostat, and clean out the ductwork as needed. This will ensure your unit is as energy-efficient as possible and that your family doesn’t suffer allergies due to poor air quality in the home.

Security

Moving into a new home can be somewhat scary since you don’t know the area very well. To help alleviate you and your family’s unease, installing a security system might be a good idea. Today’s security systems are very interactive. They can be controlled using your smartphone and you can receive instant notifications of any emergencies while you’re away. It may also be possible to monitor your residence via a streaming video feed when you’re not home. Having a security system may help your family feel more at ease in your new home, especially if you train everyone on how to use it properly so they can feel in control of their new surroundings. You’re probably very excited about moving into your new home but be sure you have the above-mentioned services conducted ahead of your actual move-in date. Doing so will ensure you and your family will be as comfortable and as happy as possible in your new home.

November 2022 Market Stats for North Okanagan

Novembers statistics for the North Okanagan show the slow down in sales and activity in the real estate market. While the benchmark price for a single family home in the North Okanagan remains steady at $710,200 we are starting to see longer days on market with an average of 49 and increased inventory up to 255.   November 2022 – Data Release

6 Essential Property Investment Tips You Have To Know

The road to successful real estate investing is pitted with potholes and loose gravel along the way. Whether you’re just starting out with your first investment property or you’ve already bought several, the following list is full of great tips.

1. Choose Properties In Up And Coming Neighborhoods

Buying rental properties is a great way to increase your wealth through real estate investing. Purchase the right property in the right neighborhood and you’ll enjoy huge returns on your investment. Up and coming neighborhoods offer the potential for growth as well as tax incentives for buyers.

2. Diversify Geographically

There’s a lot to be said for buying close by and understanding the local market. However, by purchasing properties in other areas, you diversify your investments and protect your portfolio from the volatility of a local market.

3. Don’t Spend Too Much On Renovations

You don’t need to buy high-end fixtures and accents in order to make a rental attractive. Middle-of-the-road pieces are just as enticing to renters and a lot less damaging to a limited budget.

4. Don’t Over-Leverage Yourself

Successful real estate investors have a combination of properties that they own free and clear and some that they finance. This creates a healthy balance that promotes profit while giving you the funds you need to grow your business.

5. Consider Investing In A Single-Family Home

Most people would love to live in a house, but some lack the finances to own one and others simply do not want to own. Whatever the case, a single-family home is a good investment as they have a history of appreciating quickly and profitably.

6. Get Ahead Of Big Maintenance Problems

Finding and fixing minor issues before they become big ones can save you a lot of money. Unfortunately, not all tenants will alert you to small issues until it’s too late. Write a bi-annual walkthrough into the lease to give your tenants an opportunity to point out any potential problems they see as well as to give you a chance to spot anything that needs attention. You’ll come to look forward to these walkthroughs, especially when you spot a small water leak or two that could have cost you a lot of money had they gotten worse.

5 Ways To Become A Responsible Homeowner

Buying a home is one of the biggest decisions you’ll ever make. It’s a huge responsibility that requires more than just the act of purchasing the property itself. It means you must also invest in said property by maintaining and upgrading it properly.

As a homeowner, you are responsible for a lot of things in and around the house. Below is a list of things you are responsible for when you own a home. Be sure to consider these things when deciding whether home ownership is for you or not.

1. The Legal Side Of Things

If you’re planning to build a home from the ground up, it’s your responsibility to make sure you have the proper permits in place to do so. Every community is different, so it’s up to you to find out what they require.

Obtaining approval on building permits can take weeks or even months to come through, so skipping this step might be tempting. It’s in your best interest to go through the proper channels, however, because without the right permits, the authorities could halt progress on your house, or worse, demolish it altogether.

2. Dealing With Homeowners’ Associations

If the home you’re considering is in a neighborhood overseen by a homeowners’ association (HOA), you could be in for some difficulty. These associations tend to have strict guidelines you must follow and even stricter enforcement and penalties if you don’t.

The best way to know what your HOA responsibilities are is to read the HOA agreement closely before buying or renting in the neighborhood and attending regular HOA meetings.

3. Paying The Mortgage

Responsible homeowners pay their mortgages on time, plain and simple. Failing to do so can result in harassing phone calls and letters from the lender, as well as legal action and/or foreclosure. To ensure you always have the funds available to pay your monthly mortgage payment, set a clear budget that sets the money aside for this payment before anything else. After all, you have to have a place to live, right?

4. Dealing With Neighbors

Unless you move into the country where houses are few and far between, you’re going to have neighbors. It’s in your best interest to get along with the people who live around you. As a responsible homeowner, you should be polite when you see your neighbors, and you should go out of your way to remedy any situation your neighbors may find disturbing.

5. Understanding The Mortgage

Mortgages can be complicated, so it’s a good idea to understand yours completely so there are no surprises when it comes time to make your first payment. Find out what your payment includes. Are you paying just principal and interest, or does it include escrow for homeowners’ insurance and/or property taxes, too?

Be sure you understand the going interest rates and how they apply to your loan. Is the interest fixed, or will you need to consider refinancing in a few years when your interest rate adjusts? Knowing the answers to these questions will help you prepare for anything that may arise with your mortgage payment in the future.

Owning a home is more than just making monthly payments. There are many things you become responsible for as a homeowner. Although not comprehensive, the list above gives you many things to consider if you’re thinking about buying a house.

5 Upgrades For Outdoor Living Space

As the coronavirus pandemic continues, many of us are staying at home more. This means finding new ways to entertain ourselves indoors and out. If you’ve never thought of your outdoor space as entertaining before, now’s the perfect time to transform it into an oasis of sorts to get some fresh air and a change of pace. Here are several upgrades that can transform your outdoor spaces into areas you’ll want to spend time in.

1. Hang A Hammock

Who doesn’t like lying in a hammock on a warm, breezy day? If you have two trees within hammock-hanging distance of each other, or, even if you don’t (you can install your own poles for hanging), you can hang a hammock or some other swinging-type seating to enjoy the great outdoors in.

2. Hang Lanterns Or String Lights In Your Yard

Just as lighting plays a big role in the ambiance inside your home, it can also lend a warm, relaxing vibe to your outdoor spaces, too. Try hanging decorative lanterns or stinging pretty lights across your yard or along a fence for a rustic look that begs you to enjoy it once the sun sets.

3. Play Around With Seating

Gone are the days when patio furniture had to match. These days, you have a multitude of options when it comes to outdoor seating. If you like collecting individual pieces and creating your own seating arrangement, go for it to create an outdoor seating area that portrays your personal style.

4. Accent With Textiles

Make your outdoor space fun and exciting by adding accents in bright colors and textures. From area rugs and throw pillows to slipcovers and more, you can make an extension of your indoor living area. Just be sure to choose fabrics that are designed to withstand the elements, so you don’t have to worry about storing any of your accents when the weather turns foul.

5. Consider Your Outdoor Activities

How will you use your outdoor space? Not only should it be comfortable and inviting, but it should also be functional. By adding a fireplace, you create a warm atmosphere that enables you to use the space during colder months. You can also add an outdoor kitchen, which will enable you to cook and dine outside on those beautiful summer evenings. Hopefully, the upgrades above will help you create an outdoor space that you love to spend time in.

7 Interior Trending Decor Ideas

Today’s home is much more than just a place to rest and unwind. These days it’s an office, school, and whatever else it needs to be while the pandemic rages on. With the dawning of a new year comes new interior home décor trends most people will find refreshing and helpful. So, without further ado, here are a few of the interior décor trends you can expect.

1. What’s Old Is New Again

While styles come and go, it’s the nostalgia that’s playing a big role in today’s interior décor trends. Styles from the Victorian era, Art Deco, and even grand millennial aesthetics are making a comeback as many people wish longingly for what used to be in a world so full of uncertainty and strife.

2. Easy To Clean Is Always Good

We’ll be seeing lots of easy to clean fabrics and surfaces. Expect non-porous surfaces like glass and metal to be part of many home renovations as they deter the growth and spread of bacteria. Also, the kid-friendly, durable, stain-proof fabric will take center stage where applicable.

3. Warm, Cozy Colors

Earthy tones and warm neutrals will be popular as we begin making our homes cozier places to be. Today’s trend is organic shades like Camel, which adds a layer of warmth and hominess gray just doesn’t have.

4. Calming Shades Of Blue

Color has a big impact on our emotions, which is why shades of soft blue will be trending this year. The calming effect this shade has on the mind will help alleviate some of the stress we’re all feeling as we stay quarantined in our homes. Blue is a timeless color that never seems to go out of style, making it a great choice for a fresh look.

5. Natural Materials Aren’t Going Anywhere

Wood tones, organic materials, and natural accents are going to be extremely popular.

6. Say Goodbye To The Open Floor Plan

In years past, the open floor plan, where one room flows seamlessly into the next, was valued as it brought the family closer together. This realization puts open floor plans on the outs and closed floor plans at the top of many homeowner’s renovation plans.

7. A Shift Toward Sustainable Furnishings

Sustainability is a subject that impacts our daily lives in many areas. Today’s homeowner is opting less for cheap, DIY furnishings and choosing instead to buy furniture that’s more expensive and better made. These furnishings are kinder to the environment and they give their owners a sense of pride in being able to hand down an heirloom rather than throwing the piece in the landfill.

3 Things To Keep In Mind When Buying A Home For Sale By Owner

As you continue looking for the perfect home, you’ll likely come across one or two that are For Sale By Owner (FSBO). This means the sellers have not listed it with an agent and are attempting to sell it on their own. Does this make the buying process easier? What kind of risks are involved? In the post below, we’ll go over a few things to keep in mind when buying an FSBO home.

1. The Seller Will Work with Your Agent

A majority of sellers know you’ve worked with your agent closely for weeks (months?) before coming across their FSBO home and will gladly compensate your agent as any other seller would do.

If you’re interested in a for sale by owner home, have your agent make the first contact. This gives your agent the opportunity to find out if she can still work for you and collect payment on the deal should it proceed.

2. Be Prepared to Meet the Owners Face-to-Face

The biggest difference between an FSBO home and one listed by an agent is that you’ll get to meet the owners face-to-face rather than meet with an agent when looking at the home. Selling a home is a sentimental time for the owners, so it may seem a little uncomfortable for you when meeting with them to look at or discuss their home.

If this is the home you’ve got your heart set on, you’ll need to move past those uncomfortable feelings and be respectful of their emotions. Don’t forget to use your agent as necessary and don’t be afraid to ask for some time alone in the home if you need it.

3. FSBO Sellers Must Still Abide by the Law

As with any other home sale, there are laws the FSBO sellers must abide by. If the law says a seller has to inspect the home, make repairs, or disclose any problems, then the FSBO seller must oblige. One of the biggest problems with FSBO home sales is that the sellers often don’t know or understand real estate law, or they simply want to do things their own way. At any rate, trust your agent and your own gut. If you think a seller isn’t on the up and up or isn’t allowing you due diligence, it might not be the right home for you.

For sale by owner homes can be just as great as homes listed with a real estate agent. While the same laws and requirements apply, there could be problems if the seller lacks real estate knowledge or isn’t willing to do things by the book. Keep these three things in mind if your dream home happens to be an FSBO home.

5 Ways To Make Money By Investing In Residential Real Estate

Investing in residential real estate is one of the easiest and most lucrative ways to make money. There are several ways to make money when investing, with some ways being more full-time and more costly than others are. Which option works best for you depends solely on how much money you want to spend and how much time you want to devote to the cause. Let’s take a look at the top five ways to make money investing in residential real estate.

1. Long-term Rental Properties

Investing in long-term rental properties is maybe one of the best ways to make a profit in real estate. It takes a lot of capital up front, but the return on investment (ROI) is high, with the biggest benefit being the constant monthly cash flow.

Both single family and multi-family units have the potential for being great moneymakers, but it can be difficult finding just the right property in just the right area to really make this type of investing worthwhile. Most investors prefer to purchase single-family homes because there are more of them for sale, which increases the chances of finding the right one.

2. Fix and Flip

Many beginning real estate investors start with fix and flips. They buy properties on the cheap, fix them up, and resell them at a profit. A lot of money is needed upfront for down payments and repairs, as well as the funds necessary for carrying costs until the house is sold again. It can be overwhelming managing contractors during the repair phase, as well as when trying to sell the house again when everything is complete.

The biggest mistake people make when investing in fix and flips is trying to do the repairs themselves. They think they are saving money, but in the long run, it costs more because it takes longer to finish repairs. It is best to hire professionals to make the repairs quickly so you can get to making a profit sooner.

3. Wholesaling

Wholesaling is when an investor buys a residential property, and then turns right around and sells it to another investor without making any repairs. In some cases, the first investor never even actually buys the property, but obtains it under contract before handing it over to another investor. Wholesaling goes very quickly, and many real estate investors make hundreds of thousands of dollars a month doing it.

4. Vacation Rentals

Vacation rentals are those properties purchased in a great tourist-y area and rented out on a monthly basis. During peak seasons, vacation rentals can bring in quite a profit. However, during off-peak seasons, they sometimes barely cover the monthly mortgage, upkeep and management fees. The key to continually making a profit with a vacation rental is to set the rent at a level that keeps renters in it year-round.

5. Long Distance Rentals

When investing in residential real estate, it’s important to look for the best deals possible to increase profits in the end. This isn’t always easy because some markets have incredibly high prices for real estate. Places like New York, for example, see purchase prices as high as $500,000 or more. This makes it very hard to buy property because it requires too much money upfront. What buyers are doing to avoid this issue is investing in residential real estate in another market.

A lot of work goes into investing in long distance real estate. You have to choose a good market, find a superstar realtor, hire a property manager, and then look for the right property. You have to trust the people you have working for you, and be willing to travel if needed to.

Investing in residential real estate is definitely a great way to increase profits and save for retirement. There are several ways to do it, but it all depends on how much time and money you’re willing to put into the process. The five options above give an idea of just what it takes.

How To Easily Negotiate To Make Real Estate Bargains

Negotiating a real estate deal is usually a daunting task for both seller and buyer. While both hope for a favorable outcome, one or both may end up sacrificing some of the things they hoped for to reach a satisfactory understanding that they can both live with. Not everyone is born with a knack for negotiating, but it is an art form that can be learned. Here are several negotiating tips to help you get the best real estate bargains.

Watch the Market Closely

Whether you’re a buyer or a seller, you should watch the market closely for going trends and conditions that could be favorable to your situation. Knowing what’s popular at the time, in addition to the supply and demand in the area you’re buying or selling, are great negotiating tools.

Having said this, it’s important to note here that even if the market isn’t favorable at the time you’re selling, you could still have the upper hand in negotiations. For instance, if you are selling a nice house in a popular neighborhood where few houses are up for sale, you have leeway to negotiate a higher asking price because the supply of properties for sale in the area does not meet demand.

Know Who Holds All the Cards When

As the real estate deal progresses, the person with the most negotiating power changes. For example, at the beginning of negotiations, the buyer holds all the cards. As the deal moves forward, however, the buyer loses some of the power, until ultimately, the seller has all the power because he chooses the buyer with the offer and terms that best suit his needs.

Get the Best Deals

In a real estate deal, both the buyer and seller look for ways to save the most money. For the buyer, negotiating a good deal means getting the lowest transaction costs possible through concessions offered by the seller. For the seller, a good deal means selling the property without having to give any concessions at all.

The Financial Side of Things

Secure financing is important to both the buyer and the seller. Without pre-approved financing in place, a buyer may not qualify for financing. For the seller, it may be hard to close a deal if the buyer isn’t pre-approved. Having secured financing in place ensures both parties can proceed with the transaction.

Know the Going Interest Rates

Low interest rates are beneficial to both buyers and sellers. Buyers are looking for the lowest interest rates possible, as well as the lowest down payment, too. For a seller, lower interest rates encourage buyers, which increases demand for properties. The higher the demand for a property, the more negotiating power a seller has.

Don’t Underestimate the Other Party

While expertise and experience surely give a leg up in any transaction, it’s important to never underestimate the other party. Even with the most financial backing and best representation, an underdog could come along and negotiate a better deal no one ever saw coming.

How to Act When Negotiating

When negotiating a real estate bargain, keep the following behavioral aspects in mind.
  1. Negotiate face-to-face – Meeting face-to-face and speaking directly with the other party allows you to react appropriately and build a rapport with them.
  2. Be assertive – Let the other party know it won’t be easy to con you by asking knowledgeable questions and stating informed facts about market trends.
  3. Be polite – Mind your manners and speak politely when negotiating. Be prepared to walk away if the deal doesn’t suit you or you feel pressured, as it’s your right to do so.
  4. Be flexible – You may go into a deal with a certain plan but be prepared to alter that plan to seal the deal. It would be a shame to miss an opportunity because you’re unwilling to budge a little bit on the financial side of things.

How You Can Buy A Home In A Hot Real Estate Market

The real estate market is booming right now. Thanks to possible higher rents and mortgage payments in the near future, many people are deciding it’s time to make the leap into homeownership. It’s a seller’s market for sure, making it a competitive one for homebuyers.

The good news is if you’re in the market for a new home, following the tips below can give you a leg-up on the competition and make it possible to secure the house of your dreams.

Get Pre-Approved For A Mortgage

Before you even begin looking at houses, get pre-approved for a mortgage. It’s important to note here that pre-approved and pre-qualified are two different things.

Pre-approved means a lender has already looked at your credit, income, and expenses to determine how much home you can afford using their underwriting guidelines.

Pre-qualified simply shows the amount of house you can afford based on your income. It doesn’t mean that a lender will approve you for a loan.

Having a pre-approval letter in hand when looking at homes shows you’re a serious homebuyer.

Submit A Clean Offer With No Contingencies

If you submit an offer with contingencies, the seller may pass over it for one that has no stipulations. Contingencies like needing to sell your current home before closing on the new one will quickly send your offer to the bottom of the pile. Try to submit an offer clean of contingencies to show you’re serious about buying a home and closing on time.

Make An Appealing Net-Price Offer

The net price is the amount the seller gets after everything is said and done. The less they have to pay for, the more money they put in their pockets when the home sells. Try to make sure they get as much money as possible by not making them pay for things like closing costs. Anything that makes them have to shell out more cash in the sale could cause them to turn down your offer.

Make A Sizeable Down Payment

Submit an offer with a sizeable down payment. At the time of this writing, the average down payment is nearly 8 percent of the median sale price. The reality is, sellers are more likely to accept an offer with a larger down payment because they feel the bigger down payment will put the buyer in a better position to qualify for a mortgage.

Don’t Ignore The Fixer Upper

Many homebuyers will pass over homes that need fixing up. It can be difficult living through a home renovation, but if you can purchase the house for a decent price, it may be worth it to get the house of your dreams in the end.

If you’re looking to purchase a home that needs more than just a coat of paint and some new carpeting, do your homework when it comes to hiring contractors to get the job done. Check with some of the non-profit housing organizations for recommendations on construction professionals for your renovation.

The housing market is a competitive one for homebuyers these days, but when you come prepared, you can beat out the competition to secure the home of your dreams. Use the tips above to be a serious contender in a hot real estate market.

How To Keep Your Drain Pipes In Tip Top Shape

Your home’s pipes have a very important job. They carry fresh water in and carry waste out. Here’s how to deal with slow-moving or clogged drains and pipes and keep them in tip-top shape.

Be Careful What You Put Down the Drains

One of the biggest culprits of slow-moving and clogged drains and pipes is not being careful of what goes down them. Grease is probably the most problematic substance people allow to go down the drain. While it’s easy to assume the liquid goes through the pipes as water does, the reality is it actually solidifies quickly and collects in specific spots along the way. As it builds up, it causes problems. Luckily, grease is the easiest drain problem to deal with since you have total control of whether it goes down the drain or not. Rather than pour grease down the drain as you’re cooking, collect it instead in an old coffee can that you throw away once it’s full.

Run Hot Water

One of the easiest ways to help your drains stay clear is to get in the habit of running hot water down them after each use. While oils and other substances can settle, hot water keeps things moving along nicely. All you have to do to ensure your drains stay clear is turn the hot water on and let it run in the sink for a moment or two.

Use Baking Soda and Vinegar

If you have a slow-moving drain or there’s a foul odor coming from the pipes, use vinegar and baking soda to clear it up. Simply pour a quarter-cup of baking soda in the drain and follow it up with a cup of white vinegar. The combination creates a volatile reaction that foams inside the pipes to clear the offending clog or buildup. Let the combo do its job for 15 minutes and then run hot water down the drain for a few seconds. This natural drain cleaner can be used regularly to keep your pipes clean and fresh. Your home’s pipes are very important. When they don’t work as they should, it’s very inconvenient and unhealthy. Use the tips mentioned above to keep your drains and pipes in tip-top shape.

Easiest Way To Change Your Address When You Move

There are a lot of things to do when moving to a new residence. One important thing is changing your address. It can be challenging remembering everyone you should notify, so here is the easiest way to get the job done.

Who Needs to know?

The list of people who should know that you’ve moved can be rather lengthy so be sure to make a list. Find your holiday greeting card list to be sure you’ve included family and friends. Next, include all your doctors, dentist, optometrist, etc. Your child’s school and any regular services such as lawn care or cleaning services should go next. Lastly, jot down magazines, newspapers, and even the IRS.

When to Notify Everyone

The postal service suggests putting in a change of address no later than two weeks before you move. The ideal time to do this, however, is about three months before you move. Since the postal service will continue to forward your mail for 12 months, this gives you plenty of time to notify everyone on your list.

How to Notify Everyone

How you notify the people on your list is up to you. If it’s close friends or family, you can simply pick up the phone to relay your new contact info. Many creditors have a place on their monthly statements for you to enter your new address and phone number. Alternately, there are post cards available at the post office for you to fill out and send in the mail to notify others of your impending move.

What You Need

When you contact people you have accounts with, be sure you have your new address and phone number handy, as well as account numbers, an email address, and any other information that may help them identify you and your account.

What to do After You Move

If you receive any forwarded pieces of mail, contact the sender to verify they have your new address on file. It could be that the change simply hasn’t had time to process in their system or that they didn’t receive your new contact information. Keep an eye open for your forwarded mail in about 7 to 10 days after you move in.

Moving is a chaotic event with lots of things to do. Use the tips above to easily change your address with the people who need it most.

3 Ways To Renew Your Flooring To Update Your Rooms

The floor in a room makes up a big part of the room itself. As such, it has a huge impact on the look and feel of the room. For example, if the floor is dirty, it makes the rest of the room feel unkempt, but as soon as you vacuum and/or mop it, the room looks and feels cleaner and has a more welcoming atmosphere. Because the floor and skirting in a room plays such a big role, it’s important to maintain it and keep it fresh. Below are a few ideas for renewing your flooring to update any room in your home.

1. Replace The Skirting

When most people think about updating a room, they don’t usually consider the skirting to be of much importance. This is a mistake as updating the baseboards around the floor can make a big difference. Changing the skirting is relatively easy, especially once you get the old boards off. There’s a right way and a wrong way to do this, so be sure to Google skirting removal to learn the easiest way to do it. Visit your local home improvement store or go online to websites to find your new baseboards. Before you install them, though, consider updating the flooring first.

2. Restore Hardwood Floors

If you’re lucky enough to have real hardwood floors in your home, you can give the rooms a fresh, new look simply by refinishing the wood. With the baseboards removed, this job is easier than ever, especially if you rent a professional sanding machine. Alternately, if your budget allows, you can hire a professional contractor to do the job for you.

3. Install Laminate Flooring

Laminate flooring is probably the easiest way to renew the flooring in any room of your home. With a huge array of colors and designs available, you’re sure to find something to complement the décor in any room.

The main thing to remember when choosing laminate flooring is to be sure to get the right type for the room it’s going in. For example, if you’re installing it in the bathroom, be sure to choose one that’s designed to withstand dampness, so it lasts for many years to come.

Whether it’s the kitchen, bathroom, or a child’s bedroom, the floor has a huge impact on the look and feel of the room. As such, it makes sense that if you want to give the room a fresh new look, you should give careful consideration to the flooring in the room. From refinishing existing hardwood floors to installing laminate or some other flooring material, renewing the floor will update the look and feel of any room in your home.

Tips On How To Build A Real Estate Investment Portfolio

So, you think you’ve mastered the art of real estate investing, have you? You’ve already obtained and are successfully managing one or two properties and are thinking it’s time to buy a couple more.

There’s a lot to do when it comes to real estate investing. From finding good investment opportunities to managing them all, it’s a full-time job. Here are a few tips to help you get started on building a sizeable real estate portfolio.

Build a Team to Help Manage It All

Being a landlord is a full-time job. Each property will require your time, and the more properties you own, the more time it will require. Begin building a team of people you can trust to help you manage it all. Professionals such as property managers, contractors, inspectors, etc. will help you stay on top of things and take some of the responsibility off your shoulders.

Spread Your Investments Over Several Markets

If you’re managing everything yourself, you’ll likely want to keep all your investment properties close together for convenience. However, this is like putting all your eggs in one basket.

If you purchase investment properties in more than one market, it protects your money in the event that one market struggles, the other can keep things afloat.

Have Plenty of Available Cash

To build your portfolio, you need to have plenty of easily accessible cash to take advantage of opportunities fast. There are a few different ways to ensure you have the cash you need on hand.
  • Refinance or sell an existing property
  • Partner with other investors
  • Do a 1031 Exchange when you sell an investment property

Know Your Investment Goals

It’s hard to achieve goals when you don’t fully understand what it is you hope to achieve. Before you begin looking for investment properties, ask yourself the following questions.
  • Do I want to invest in different markets or stay local?
  • Do I want to focus on the value of my portfolio?
  • How many properties do I need to buy in order to reap a profit that exceeds my expenses?
  • What do I hope to achieve? Higher monthly cash flow, more stability, or a combination of both?
These questions are important as they help you decide the direction you need to go in order to scale your portfolio. It’s important to understand your goals first and then work to put plans in place to achieve them.

Most real estate investors start out by owning a rental property or two. They quickly find out that real estate investing is quite lucrative and want to buy more properties. It’s a lot of work building a sizeable portfolio, so be sure you commit to memory the tips outlined above.

4 Advantages Of Making Extra Payments To Pay Your Mortgage

If you own your home, you’ve probably already heard that paying extra towards your mortgage loan principal every month or making an extra payment or two every year has some pretty great benefits. This is a reality that many homeowners should take advantage of, and the four advantages of making extra payments to pay your mortgage below are why.

Advantages Of Paying Down Your Mortgage

1. You’ll Pay Less Interest Over The Life Of The Loan

Everyone knows interest is calculated by the amount and the length of a loan. That being said, the less time you take paying a loan off, the less interest you end up paying. Even though it’s a well-known fact, not everyone realizes the astronomical savings this amounts to when it comes to a mortgage loan.

Here’s an example. If you have a $100,000, 30-year mortgage with a 4.5 percent interest rate, and you pay an extra $100 every month, you will save $26,377.36 in interest over the life of the loan.

This fact alone is enough of a reason to pay down a mortgage, but here’s another.

2. You’ll Pay Off The Loan And Build Equity Faster

Obviously, if you pay more each month, you’ll pay the loan off faster. Using the example above, you would shave 8 ½ years off the length of your loan, which helps you quickly build equity you can use later on.

3. You Have More Options

When you pay extra toward your mortgage, it opens doors that would otherwise be closed to you. For instance, you would be able to take out a home equity line of credit that gives you fast cash for just about anything you need.

As a general rule, you can’t get a home equity line of credit on an investment property, but you still have flexibility when it comes to who you rent to once the property is paid off. You could let someone stay rent-free if you wish because you don’t have to worry about making mortgage payments anymore.

4. You Can Refinance Easily For A Lower Interest Rate

This advantage is most useful once the property is paid off, but even before that happens, paying extra sets you up for easy refinancing at lower interest rates to save yourself even more money.

Disadvantages Of Paying Down Your Mortgage

Now that you understand the advantages of making extra payments to pay your mortgage, it’s important you also understand the downside to making those extra payments. Every mortgage is unique, so you’ll have to weigh your options before deciding whether to put extra cash toward paying yours off early.

1. You May Sacrifice Liquidity

Sometimes it’s smart to hold onto your cash. There are instances where paying extra towards your mortgage principal does nothing to increase your cash flow. Here’s an example.

You are a real estate investor with multiple rental properties. You have $10,000 in your investment checking account, and all your properties have paying tenants. You have a total of $600,000 debt, but your lowest loan is just $30,000. Do you put that $10,000 toward paying down that lowest loan? Maybe not.

If that loan is a fixed-rate loan, paying down 1/3 of it won’t lower your payments, which does nothing to increase your cash flow. Yes, it decreases the length of the loan, but as an investor, you’re in it to make money, so it makes no sense to use that money to pay down the loan.

2. You Don’t Qualify For Tax Breaks

When you pay interest on a mortgage, you can write that amount off on your taxes. The less interest you pay, the less of a tax break you get.

3. You Miss Investment Opportunities

Putting your extra cash toward paying down a mortgage takes capital away from future investment opportunities. If you are trying to build a real estate investment company, you need any extra cash for new investment properties.

As you can see, there are several great advantages to making extra payments to pay your mortgage. On the flip side, there are a few reasons you may not want to, too. Assess your situation and decide if it makes sense to use your extra cash to pay down your mortgage.

6 Real Estate Professionals All Homeowners Need

Have you ever heard the saying, “It takes a village to raise a child?” You can apply the same concept to buying and selling a property. It’s a group effort, especially if you’re an investor owning multiple properties. There’s a lot of responsibility when dealing in the real estate market, so it pays to form lasting relationships with people who know what they’re doing. Here are several real estate professionals all homeowners need at least once.

1. Real Estate Agent

The real estate agent is often the first person a buyer or seller sees. This real estate professional’s job is to negotiate the best terms for whomever he or she is working. The real estate agent also helps their clients through the legal requirements of the buying or selling process.

For investors with multiple properties for rent, real estate agents can help you set prices and find qualified renters. In some cases, a real estate agent will also screen potential tenants, field phone calls, and show your properties.

2. Home Appraiser

The home appraiser works for the lender. This real estate expert takes into account several factors including a comparison of the home with similar ones in the area that have recently sold, the cost of the home, and the income potential of the home before presenting the lender with a price for the property. Other factors an appraiser looks at is the size of the home, its condition, and the condition of the surrounding neighborhood.

3. Home Inspector

A home inspector looks at every nook and cranny of a property and gives a detailed report of his or her findings for the buyer. Any offer to purchase should be contingent on the inspector’s report. A home inspector looks at major aspects of a home such as its electrical wiring, plumbing, heating/cooling, as well as the roof, walls, floors, windows, and doors.

4. Insurance Agent

Every mortgage requires the borrower to have homeowners insurance in place. The policy protects the owner from loss in the event of things like natural disaster, accidents, and lawsuits. Not all homeowner’s insurance policies are created equal, so it’s important you have a knowledgeable insurance agent on your side. This person can ensure you have sufficient coverage for both common and not-so-common mishaps. If you’re a landlord, an insurance agent can make sure your policy covers things like problematic tenants as well.

5. Loan Officer

A loan officer works for the lender, but it’s his or her job to help you qualify for a loan. This real estate professional gathers personal information from you such as your income, your employment status, and other qualifying information to determine whether you have the ability to pay back a loan. If you have less-than-perfect credit, the loan officer tells you what you need to do to fix it in order to qualify for a loan in the future. A loan officer also helps you get pre-qualified for a loan, which presents you as a serious buyer in the eyes of sellers and real estate agents.

6. Mortgage Lender

The mortgage lender uses the recommendation of the loan officer in deciding whether to grant you a mortgage loan or not. Based on the loan officer’s opinion that you can, and will, pay the loan back, the mortgage lender provides qualifying buyers with the money they need to purchase property. A mortgage lender can be a bank, a savings and loan institution, a credit union, or some other financial institution that lends money.

Whether you’re buying or selling a single home, or you’re an investor buying and/or selling multiple properties, the real estate professionals above are vital to being successful. Gather a team of these experts that you can count on every single time.

6 Ways to build Home Equity

The goal of homeownership is to build equity. Equity is the percentage of your home that you own – the more you pay off the principal, the more you own. Let’s explore the many ways you can build equity in your home.

1. Let the Property Appreciate

Depending on the market, your home could appreciate quickly or slowly. For example, if you bought a home in 2016 for $185,000 with a down payment of $12,050, you would have started out with about 7-percent equity. Since market values rose steadily over the next two years, the equity in your home would have also risen to a whopping 23 percent by 2018.

2. Make a Big Down Payment

While making a bigger down payment definitely enables you to build equity faster, it’s wise to exercise caution with this method. Saving for a larger down payment may cause you to have to wait to purchase a home, which can cause you to miss out on market appreciation. It’s best to find a good balance between down payment, monthly commitments, and savings.

3. Put Windfalls of Money Toward Your Mortgage

When you come into lump sums of money, put them toward your mortgage to bring down the principal faster. When you make these lump sum payments, ask your lender if they are willing to recalculate your monthly payments based on the lower balance due.

4. Pay Your Mortgage Bi-Weekly

Divide your mortgage payment in half and pay it every two weeks instead of once a month. If you follow this payment schedule for a full year, you will end up paying 13 monthly mortgage payments instead of 12. This will cut 5 or 6 years off the length of your mortgage, building equity in your home faster and saving you tons of money in interest.

5. Take Out a Shorter Mortgage Term

Most people opt for the traditional 30-year mortgage, which makes paying the monthly payments much easier. You can build equity much faster, however, by opting for a 15-year mortgage term instead.

There are two potential problems with a 15-year mortgage term, however. The first is that it may make it more difficult to make the monthly payments since they will be twice as high, and the second issue is that it’s much harder to qualify for a shorter mortgage term.

6. Make Improvements and Upgrades to Your Home

Increasing your home’s value through improvements and upgrades will build equity. Keep in mind, however, that simply adding a coat of paint won’t be enough. Big renovations like a new kitchen or adding extra rooms or additional bathrooms will up the value of your home and build equity in it swiftly. Just be sure the improvements you make will be worth it once they’re complete.

As a homeowner, you should be working toward building equity in your home. From allowing the property to appreciate on its own to making home improvements and more, you can build wealth by building equity in your home.

Things To Consider If You Are Investing In Real Estate Later In Life

Real estate investing is something that takes time. It takes time to build a strong portfolio, and depending on the type of investing you do, it takes time for the investment to pay off.

If you’re starting your real estate investing portfolio later in life, you may not have as much time to be as successful as you’d like to be, so be sure you consider the following points first.

Time is More Important than Money in Real Estate Investing

As stated before, it takes time to really be successful in real estate investing. You can always make more money, but you cannot make more time. You get the time you get and that’s it.

Using the example below, which one would you choose?

Example A: You’re 30-something with $10,000 in the bank. You have the ability to save another $10,000 a year after that.

Example B: You’re in your early 60s with $500,000 in the bank, but you only have the ability to save about $50,000 a year after that.

Most people would choose Example A because there is more time to save a greater amount of money. The younger a person is when they begin investing, the more opportunity there is to take advantage of compounding options to increase wealth. Later in life, these options are limited as there is not as much time.

The Older You Get the More Conservative You Become

For most people, age brings with it conservatism. This isn’t to say that if you’re a natural risk taker that you all of a sudden become conservative but getting older does tend to make people more conservative and less likely to take risks. This switch is likely due to the shrinking time frame you have to accomplish your goals.

As an example, if you’re in your 30s, you have a good 30 years to make investments, take a loss or two, and land back on your feet financially before retirement. If you’re only a few years from retirement, you’ll be less likely to take that kind of risk knowing there isn’t enough time to recoup. To compensate for this limitation, some older investors think that taking on a higher-yielding investment is the right idea. Unfortunately, higher yield usually means higher risk, which is exactly what you don’t want to do at this stage in your life.

Age plays a huge role in real estate investing as the younger you are, the more time you have to build a strong portfolio. Time is far more important than money in this case as you can’t make or buy more of it. And since time is not on your side as you grow older, your options for investing become limited as well.

If you’re thinking of getting in on real estate investing later in life, make sure you’ve considered the points listed above as it’s very likely you won’t achieve the results you’re looking for.

The Pros and Cons of Real Estate Investing vs. Investing in Stocks

The question of which is better – investing in real estate or investing in stocks – has no definite answer. It all depends on the personality, preferences, and lifestyle of the person doing the investing. In fact, it even comes down to the individual investment opportunities themselves, in many cases. So, since there’s no real answer to this age-old question, let’s take a look at some of the pros and cons of each type of investing to help give you perspective.

Real Estate Investing – Pros and Cons

When you invest in real estate, you own physical property. Whether it’s a parcel of land, a residential property, or a commercial building, it’s something you can touch and use. This aspect is why real estate investment is more appealing than stocks for many investors. Pros

  • Investing in real estate is tangible. You can touch it, live in it, and drive by it with your friends
  • It’s more difficult to fall victim to fraud when you invest in real estate because you can see your investment, conduct background checks on tenants, and ensure the building exists before purchasing.
  • Using leverage in buying real estate is much safer than buying stocks on margin.
  • Real estate investments make great inflation hedges.

Cons

  • Real estate investing is a lot of work when it comes to maintaining and managing properties.
  • If your investment property is unoccupied, you still have to pay monthly expenses like utilities, taxes, insurance, etc. without any rent coming in.
  • Real estate doesn’t really increase in value very fast. What makes it attractive is the power of leverage and its potential to increase in value if inflation rises.

Investing in Stocks – the Pros and Cons

When you invest in stocks, you are buying a percentage of a company. It doesn’t matter what the company does, if the company makes a profit, you receive dividends based on the number of stocks you purchased. Pros

  • Despite the risk, history has repeatedly shown that investing in stocks is the fastest way to increase wealth. By reinvesting dividends over a long period of time, you increase your chances of amassing virtually unlimited wealth.
  • Stock investing requires little work beyond researching the companies you invest in.
  • Investing and reinvesting in high-quality stocks can create an impressive residual cashflow that requires no work on your part.
  • Investing in stocks requires less money upfront than real estate investing.
  • It’s much easier to sell stocks than it is to sell real estate. You can sell stocks over and over in a matter of minutes, whereas it could take weeks or even months to sell a property.
  • You can borrow against your stocks a lot easier than you can borrow against your property. It’s called borrowing on margin and it’s almost as easy as writing a check against your bank account.

Cons

  • Investing in the stock market is stressful. Most investors are too emotional and fickle to really be successful in playing the stock market.
  • The cost of investing in stocks can fluctuate drastically.
  • Sometimes it’s difficult to see a return on your investment when you invest in stocks. However, if you reinvest your dividends to buy more stocks in a company, you’ll own a bigger portion of the company and receive bigger returns over time.
As you can see, there are pros and cons to both real estate investing and stock investing. Which is better is anyone’s guess. If you’re thinking of investing in something, make sure you do your homework to find out which type of investing will suit your life and your goals best.

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