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Real Estate

The Current Housing Market Is Unkind to First-time Buyers

The pandemic boosted the demand for real estate across the United States. The record-low mortgage rates throughout the past year, as well as savings from holiday trips that were not made, enabled more people to afford dipping their toes into real estate investments.

However, it created a greater demand for homes, and there are not enough properties for sale for everyone who wants to buy. The pandemic restrictions also caused many owners to defer sales. They did not want to expose their family to the virus by opening their homes to potential buyers or moving across the country. For a while, all construction work was halted. The lockdowns only permitted essential activities, and working on-site created a risk of infection.

In addition, the shortage is a culmination of years of underbuilding. The number of single-family units has been relatively low for the past decades compared to the years before the housing bubble and the Great Recession.

Competitive Home Buying

This has resulted in a very cutthroat market for buyers. Everywhere across the nation, people are competing to purchase a property. They are submitting multiple offers to outbid other buyers. Some buyers offer to pay in cash to have an advantage over competitors.

It is driving the cost of becoming a homeowner up. Even if mortgage rates remain low, the market is just not favoring buyers right now.
And, young first-time homebuyers could not compete.

First-time Homebuyers Exit Competition

The number of properties that have been listed for sale in the market rose this year. By July 2021, there were around 1.32 million unsold homes, a 2 percent growth from the month prior.

People are still snapping up homes, but most of it is happening in the upper-end markets. There is no longer sales growth in mid- to lower-tier markets. Experts explain that there are still not enough starter homes available to those buying a house for the first time.

A report by the National Association of Realtors revealed that first-time homebuyers account for 30 percent of sales in July 2021, a slight decrease from 31 percent in June 2021. However, the difference is stark compared to last year. The number of house sales to first-time homebuyers is lower by 34 percent than in July 2020.

First-time homebuyers are already facing a lot of difficulties buying a home. They are typically young and have no extensive credit history. They also have a shorter employment history, have had less time to save up for a deposit, and have a lower income.
All these give them a disadvantage, especially in a hot market.

First-time homebuyers can still borrow funds to buy a house to call their own. Some hard money lenders are more lenient than traditional financial institutions and will approve a loan application much faster.

But the rising prices of real estate properties continue to be an issue. A person who earns $100,000 can acquire a $300,000 home. The general formula to determine if a household can afford a purchase is multiplying their income by three. However, in major cities across the nation, list prices were about 5.5 times the median income of first-time buyers.

Becoming a homeowner, at least right now, is an unreachable dream for many young people. Millennials, who are hitting their peak homebuying age, are being held back by the rising cost of owning a home. The generation has already suffered through the Great Recession. Now, they are facing another crisis that prevents them from becoming homeowners.

Outlook for 2022 and Beyond

There was a point in 2020 when the market was favorable for first-time buyers. Those who took advantage of the very short window of opportunity enjoyed low mortgage rates, faced fewer competitors, and relatively more affordable options.

Some analysts believe that the home prices will stop soaring and might drop in the coming months. Others think that, in the best-case scenario, home prices will start to level off as supply bounces sometime in 2022.

The current housing boom will flatten when the mortgage rates begin to rise again, but that may not happen until 2023.
Unless construction of starter homes significantly picks up, many young people might have to wait a little longer to become homeowners. The housing market is estimated to need 5.5 million more units to satisfy the demand.

There is currently a high demand for housing units in the U.S. However, there are not enough homes right now, and it is driving prices up. For many first-time homebuyers, the market is too competitive and expensive. If one has the desire to purchase a property, they’d have to take extra care and caution to do it right.

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Real Estate

Millennials and Homes: How the Pandemic Affected the Millennial Housing Market

It seems like millennials are on the lookout for the best mortgage company, even amid a pandemic. At the beginning of 2020, Realtor.com predicted that millennials would buy the bulk of the United States’ real estate. Their share of mortgage originations had been foreseen to surpass 50% in the spring, significantly overtaking the share of total homes bought by Gen-Xers and Baby Boomers, which were only 32% and 17%, respectively.

This forecast was based on the behaviors of millennials in the housing market in 2019. Throughout that year, millennials represented 42% of all new home loans. But they didn’t buy homes with high median prices like what the Gen-Xers and Baby Boomers did. Instead, they showed more interest in affordable markets, such as the cities outside major metro areas.

And then came COVID-19 — were the millennials slowed down? Surprisingly, the pandemic did little in hurting millennial home-buyers. In fact, nearly half of millennials even accelerated their buying time. Thanks to record-low mortgage rates and stay-at-home orders, millennials were able to save up more money for a down payment. The buying process, however, was another story altogether.

Why Millennials are Eager to Buy a Home

Despite their generation’s tainted reputation when it comes to saving money, many millennials are actually in a good financial position. According to a 2019 survey, 44% of millennials have enough savings that can cover at least three months of living expenses, a.k.a. emergency savings. That’s a significant increase from the 2018 survey results, which revealed that only 32% of millennials had emergency savings.

As for their overall financial standing though, the numbers weren’t as promising. The same 2019 survey found that almost two-thirds of millennials are living paycheck to paycheck, and only 38% feel financially stable.

But that 38% must be doing rather well; since early 2017, millennials have been the most dominant mortgage buyers. By the end of 2018, nearly 45% of all new mortgages were taken by millennials. In November 2018 specifically, millennials have surpassed Gen-Xers as the ones with the largest share of new loans by dollar volume. This means that millennials are willing to get larger mortgages than any other generation.

Such is the case because millennials are getting older and having better jobs and more savings, allowing them to boost their purchasing power and their footprint in the market. In addition, affordable houses are increasing their interest in homeownership, especially if those homes are in inexpensive areas with strong job markets.

Considering that, the stereotype that millennials are only looking for condos in urban areas isn’t true at all. Instead, they prefer modest, mid-size apartments or suburban homes. Given that many millennials are starting to have their own families, it makes a lot of sense why they’re willing to forego luxury. Realtor.com actually predicts that millennials will grow more interested in “family-friendly lifestyles and affording homes.”

COVID-19’s Impact on Millennials’ Home-buying Plans

The falling interest rates and health protocols gave millennials the opportunity to save more money for a new home. However, their buying journey hadn’t been smooth. In a survey released by Angi (formerly known as Angie’s List), it was found that millennials who bought homes in March 2020 and beyond experienced more hurdles in finding and closing on new homes.

According to Mischa Fisher, chief economist at Angi, many millennials spent a long time looking for homes, submitted multiple offers, faced bidding wars, and were pushed back to older inventory. In addition, they exceeded their budgets and landed in homes that required more repairs or renovations.

42% of Angi’s survey respondents spent six months or more on home-searching alone, and out of those, 57% visited over 20 homes. Such was the scenario because many sellers became hesitant about making big money during an uncertain period. Moreover, sellers felt unsafe opening their doors to strangers during a global pandemic.

As a result, the market had fewer homes, meaning fewer options for millennial buyers. Naturally, it would take longer to choose a home if the options are scarce.

And once a buyer had chosen a home, they had to compete with other buyers who may have had better offers. Two-thirds of millennial home-buyers put in at least four offers before winning a bid. One-third paid more than the purchase price, and 35% stretched their budgets with their offer.

Their struggles didn’t end yet after getting the keys to their new abode. 56% of millennials ended up in homes that required minor or major renovations. But even so, millennials couldn’t pass on the opportunity to buy a cheaper home, regardless if it’s a fixer-upper. Besides, home improvements boomed during the pandemic. They can use their extra budget for renovations that can increase their home’s value, benefiting them in the future.

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Real Estate

Getting Advice on How to Make Long Term Investment on Property

Buying a property that can generate significant rental returns in the long term is a complicated and tedious process. The land business goes through several cycles that directly affect property values. Consequently, with the ultimate goal of making sure you don’t have to face the money constraints of equity investments in the wrong place or time, you should seek the help of an organization that offers real estate investment advisory services.

The association is very familiar with the existing laws and regulations related to real estate.

You need to rent your property as soon as you receive the services of hired workers. For now, land investment advisory organizations are also helping clients get good tenants for their property if they need it. In this way, you do not have to run from column to publication looking for people who need to rent a penthouse if you have a contract with that association. Your real estate inspectors will provide all your subtle elements related to income, property taxes, and ancillary expenses with reports.

If for any reason, you plan to offer or rent your apartment soon, then you should think wisely about the current trends in your area. Land regulations continue to change regularly and often cause headaches for buyers and dealers. With the end goal in mind, to ensure you make a decent profit from listing your property without the hassle of a court process, you should seek the help of property and property investment professionals. Real estate investment organizations are renowned for providing clients with phenomenal guidance at every step of the buying or offering process. The Property Sourcing Company provides clients with valuable property return offers, informs clients of applicable property purchase or lease laws, and handles vital client paperwork.

Real estate investment advisers offer their clients securities advisory services. However, the work of these organizations differs from the work of fund organizations. They buy and offer securities and also offer authorized trading benefits and maintain investment portfolios. An organization with an excellent reputation can provide you with all of these services at the same time in affordable packages. When you give a real estate investment firm a commitment to finding a buyer or tenant for your property, they will distribute related promotions on real estate. And to introduce yourself to your closest customers. In addition, the guides will identify you, guard your real estate portfolio for your benefit, inform you of any changes in the laws related to land, and therefore help you save additional time and money before consenting.

They will also customize the application to approve the promotion for you and give you essential tips for necessary adjustments that can increase the likelihood that your application will be recognized by interested experts who will campaign for you. To provide the services of a reputable organization and stay in the market, you need to think about the types of activities that they were engaged in before to ensure that they can help you fulfill your life years.

Conclusion

Analyzing the costs of these organizations will help you find a real estate investment advisory firm that fits your financial plan and is also ideally suited to your needs.

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Real Estate

4 Key Tips For Finding The Best Tenants

When finding a new tenant for one of your properties, it’s vital to ensure they’re reliable, open to contact and able to occupy your property without causing any issues for you. Here we have some tips for filtering out unreliable candidates and getting good-quality tenants, and granting yourself peace of mind as a property owner. 

Look At Their Career

The work a person does informs the majority of their habits. The most important factor here is obviously income, as this ties into rent reliability directly. A hedge fund employee seems like a great example, until the fund goes bust and suddenly they’re out of a job! Good property management services will be able to mitigate these unforeseen events and their consequences. 

Ask For References

This may seem like common sense, but you’d be amazed at how often references aren’t even brought up. Some references are obviously easy to fake, so it’s usually a good idea to ask for more concrete credentials or have a phone call with the referee. Peace of mind is paramount when tenant-hunting, especially considering how stressful it can be. Of course, any applicant without references is probably not worth your time or energy, unless they can procure some on demand. 

Establish A Rapport

Once you’ve narrowed your list down to a shortlist, it’s time to get to know potential tenants. All aspects of their lives could inform how they behave on your property. Hobbies are an important subject to broach; a wargaming enthusiast will create far less mess than an exotic pet owner, for example. This is also the perfect time to establish a healthy tenant-landowner relationship. By setting boundaries early and getting to know them, your prospective tenants will be more likely to conduct themselves correctly. 

Be Selective

While it may be tempting to go with the first promising candidate you can find, it’s often best to make a shortlist and ponder your options carefully. After all, you may well end up having the same tenants for years, so being hasty isn’t in your best interests. Additionally, choosing a candidate should be based on reliability as opposed to total potential rent. A steady income is always better than a large, but unreliable one. It’s also advisable to choose the least interesting candidate, since it’s unlikely they’ll have any dramatic upheavals that will interrupt their payments. In short, ensure your revenue goes uninterrupted for as long as humanly possible. 

Final Thoughts

A lot of these tips may seem like common sense. But it’s never a bad idea to reiterate the basics. A lot of the human element in property management comes down to nothing more than commonsense, people skills and overall observation. At the end of the day, it’s your time, effort and money. So why not take all the necessary steps to ensure they don’t go to waste? 

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Real Estate

How to Sell House Privately Without Hiring an Agent?

Selling a house fast and privately without a real estate agent can truly be quite simple once you know how. Nonetheless, actually like with anything, the first time can be a bit tough, specifically if property language such as conveyancing or subsidence leaves you a bit confused. So, to make sure you’re educated about how private house sales work, here are some of the steps that will guide you on selling a house without the help of an estate agent.

Boosting saleability

Before thinking about selling house fast, you first need to work on its look. So, if your budget is tight, then you can just clean the garden, give the walls new paint, etc. Therefore, if you can view that you can add value by installing a new bathroom, kitchen, or even including an extension, that could be a great alternative too. This is the best way to achieve a good value and hold it come survey time.

Write a captivating description

Don’t underrate the power of your description. This small detail can have a major effect at the sale time!  To draw the purchaser, you’re after rather than making your description include a list of features, try displaying to the buyer how such features can benefit them.

Selling a house privately requires needs professional pictures

Pictures. They’re eventually the major type of property market for attracting buyers, so they must be up to an expert standard.

Hiring a professional is the highly sensible way to bring your property’s visuals to outshine, but this will come at a price if you sell a house privately on the open market.

It’s best that pictures can be edited, but don’t ruin it. Obvious editing can seem a little ‘try hard’ and keep the potential buyers away.

List your property for sale

While if you sell a home privately on the open market you will not have the option to get to any of the significant property portals, you will actually want to list your home for sale online.  Likewise, in the case of marketing your property, don’t underrate the power of social media as well. There exists an online community around the property that could be a great source for a quick sale.

Negotiating and accepting an offer

This is the toughest part of the complete process. Well, money can simply turn friends into foes, so here is some advice for you to tread carefully here.

On one hand, one could view this as a drawback of selling a house privately. Although, your agent can handle it because they have negotiation skills. It can be nerve-wracking for you to negotiate if you lack this experience. But, on the other hand, it could also come as a useful advantage.

Here’s some skills to polish on before negotiating any offers…

Build up a pricing strategy – Having a good pricing strategy is important. If you make it, you will less likely to get confused about what to do at the moment. Also, you’ll have a great chance of getting the best price.

Positives and negatives- Another best tool of negotiation is remembering positive and negatives. By this, we imply accept your property’s faults, but ensure to provide each one with a positive twist.

In Conclusion

If you want to stay away from the hassles of hiring an agent, just follow these tips. For more ideas, simply visit: https://mrhomebuyer.ca/sell-house-privately-in-alberta/ .

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Real Estate

Role Of A Real Estate Agent In Getting The Best Deal

Have you ever wondered what role of a real estate agent does in getting the best deal for a client? This is a common question among people, who are interested to invest in property, and is one of the reasons why they are looking forward to becoming real estate agents. Real estate agents are those individuals, who are qualified to handle all the real estate related matters, whether it is buying or selling a property.

These agents have in-depth knowledge about the laws of the state they are working in and can save their clients from being in some sort of legal problem. If you wish to know more about the role of a real estate agent in getting the best deal for your property, this article will help you.

The first thing that you need to understand about the role of a real estate agent in getting the best deal for a client is that he is an advisor. He has in-depth knowledge about laws, which is required if you wish to carry out a transaction in a proper manner.

As an advisor, the Lafleur Davey will assist his client by suggesting the most profitable deal for him. The real estate agent’s role is very much related to advising his client and helping him find the best option. It is for this reason that the role of an agent in a real estate firm plays an important role and cannot be ignored.

It is not every time that you have a problem to buy a house. You will also come across times when you need to renovate your home or renovate your office. In all these cases, if you do not have any ready cash, then you will have to rely on your credit history and credibility to get the best loan facility to renovate your house or office.

In such situations, where you need money urgently, there is no better option than approaching a reputed bank or a financial institution. However, it is essential to make sure that you research well before approaching any financial institution to raise funds for renovating your home or office.

If you are selling your property, the real estate agent will play an important role in your advertising campaign. There are many ways through which one can advertise their property. One of the most popular ways through which people advertise their properties is by hiring a real estate agent to do the advertisement campaign.

Even though there are many ways to advertise the property, however, none of these methods is as effective as employing an agent who will help you in selling your property quickly. Real estate agents are trained to understand the requirements of the customer and will help them in selling the property in the best way.

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Real Estate

Steps To Finding The Best Real Estate Agent

One of the biggest decisions by any family or individual is purchasing the right property that will ultimately become their home. It is not every day that one gets to the market to find a house that will suit their requirements and be a safe haven for the coming years. As a result, it is a process that no one would want to take a gamble with considering the finances and implications involved. A foolproof measure to ensure that right from the start everything falls in place is by narrowing down on the right real estate agent which makes all the difference in how the entire process goes down.

At a time when the real estate market in New Jersey is experiencing growth, the problem is not finding an agent but the right team that will deliver on your requirements. Currently, there are so many real estate agents all looking to gain your attention and with so many offers to choose from it can be overwhelming. Nevertheless, this does not mean that making a decision should be a tough procedure as there are valuable pillars that cannot be missed for top-rated agents. Value-based due diligence is all it takes to put all worries behind you, and it includes;

  1. Take the real estate agency or company route

Anyone who has been in the markets long enough understands the power of brands, and this extends to the real estate sector. Reputed agencies such as Gloria Nilson & Co Real Estate have standards which all their agents must adhere to as a measure to protect their market integrity. Instead of trying to work out with independent agents who are often limited by resources, expertise, and market coverage an established agency gives you a comprehensive package to cater for all your needs.

  1. Local expertise

A complete grasp of how the local real estate market plays out is a quality that only seasoned agents can offer their clients. It takes years of active participation within a niche market for one to gain in-depth knowledge of the factors which affect the local real estate and how clients can use it to their advantage. A real estate agency that has a high number of sales associates and agents is the surest guarantee of constant touch with market data which can be used to your advantage.

  1. Current listing

In the real estate market, promises do not count, but numbers always do. A quick review of the portfolio which an agency offers instantly shows their capabilities as a top rated company never compromises on their current listing. Diversity shows the drive of the company to cater to all needs and can be easily discovered by a listing that has exclusive condominiums & townhouses, mansions, villas, and single-family homes in New Jersey among other options.

  1. The range of services provided

There is more to a real estate agency than giving you a list of properties, explaining the features and costs. An experienced agent will take to account questions on mortgage and home warranty insurance by availing local experts to provide real-time solutions for a smoother transaction.

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Real Estate

BUSINESS ETIQUETTE TIPS FOR COMPANIES RESETTLING IN SWITZERLAND

Switzerland has consistently ranked in the top 30 countries out of 190 when it comes to ease of doing business rankings. Some of the reasons for its high ease of doing business ranking include the fact that electricity is easy to setup, the corporate tax system in the country is easy to navigate, and the process of registering a business is in itself quite simple and straightforward.

Such a high ranking continues to be a great incentive for foreign companies to relocate their businesses to the country. It is imperative that these companies understand the Swiss business culture in order for them to prosper in this new business environment. The following are some of the Swiss business culture elements that foreign businesses are expected to adopt in order for them to flourish.

  1. Business Language

English is spoken in most parts of the country, but there is a significant number of French, German, and Italian speakers. You will find that most local businesses prefer to use German, Italian, or French rather than English. Obviously, the international companies would prefer to use English in order to be able to communicate with all of its multilingual staff and customers.

It is important to know the language commonly used in the canton that you have registered your business in, and use this language in local business dealings. This is important because it will ease your ability to communicate with local businesses and customers. In addition, more people will be willing to trust you if you speak the same language as they do.

Hence, when executing a Business Relocation to Switzerland, you need to prioritize overcoming language barriers in order to make you more competitive in your new business environment.

  1. Business Communication

In Switzerland, Business communication tends to be strictly formal whether in writing, or when being conducted in person. It is highly recommended that you keep the small talk to a minimum especially when you are dealing with the German Swiss. Try to be as direct as possible when you are dealing with Swiss customers and fellow businesses. Always maintain eye contact, control your emotions, and refrain from ever asking personal questions while in business situations.

Greetings are also an important aspect of business communication in Switzerland. The general rule of thumb is to shake hands while maintaining eye contact. Always greet business associates using their title and last name. You should only use their first name when you have been instructed to do so.

  1. Business Attire

Business wear in the country is usually formal and reserved, just like everything else about the Swiss. Keep your dressing as conservative as possible in order to minimise situations where customers or potential business partners find your dressing uncomfortable. Avoid too much jewellery, string scents, and overly bright colours. Keep your dressing as simple as you can whenever you are in a business environment.

  1. Punctuality

This is perhaps one of the most important Swiss business culture aspects that you need to have a handle on when resettling your company in Switzerland. The Swiss place a lot of importance on punctuality, and that is why they are considered some of the most punctual people on the planet.

Arriving late to a meeting is generally viewed as a big sign of disrespect. Hence, it is imperative that you arrive at each meeting on time in order to avoid disrespecting your associates. You should actually strive to arrive at least half an hour earlier than the time the meeting is expected to begin. Arriving earlier will ensure that you have enough time to prepare for the meeting. The Swiss do not take too kindly to people who seem unprepared during business meetings.

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Real Estate

The Need to Consult With Equity Release Experts Before Taking Out Loans

It is not easy deciding whether or not to take out equity release loans. On the one hand, you want to get an amount you need for a specific transaction, and it is your only source. On the other hand, you don’t wish to diminish the value of the property when it is time to sell it. If you have nothing else to leave your family, you want them to enjoy the full value of the house.

The advantages

When you choose equity release loans, you can borrow money, and remain in your house until you die, without the need to pay rent. You can use the money to pay off all other loans, so you won’t leave anything for your family members to think about. You can also spend the money on home improvements so that even if the lender takes a portion of the property’s value, the remaining amount will still be high. Home improvements increase the value of the property.

The downsides

Equity release has high-interest rates. Even if you only borrow a small amount now, after 15 or 30 years, and you are still alive, this amount could double. After selling the property, there is almost nothing left to your estate. The good thing is that usually, there is a “no negative” rule which means that even if the property did not sell for the total amount that you borrowed from the lender, your estate would not have to pay anything.

Don’t decide alone

It helps if you seek help from equity release advisers. They know a lot about equity release. They can tell you what to do. They will present you with the advantages and disadvantages of choosing this type of loan. You also have the choice between a lifetime mortgage and home reversion. Both have different terms that are quite difficult to understand. The advisers will tell you the difference, so you will know which of them would be suitable for you.

As advisers, they have years of experience. They can also point you to some of the best equity release providers, but not tell you which one to choose.

You need to prepare well

Like any other loans, you also need to apply first before you get approval. There is also a possibility that your application will end in rejection. With the help of expert consultants, you will be ready to face the daunting application process. You will go prepared to the equity loan provider’s office and get the amount you need in no time. Your chances of rejection will decrease when you have all the documents required for the application, and you fully understand the terms.

After consultation, take time to think about the information you received. You can ask your consultant again if there are concepts you don’t understand. When you are ready, you can start the application process. Don’t hurry when deciding since it can affect you and your children.

Image: Pixabay.com

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Real Estate

It is a Good Idea to Have a Specialist Mortgage Broker Next to You

When you want a dream house, you work hard to get it. You also don’t want to settle for anything less because you have your eyes set on this particular house. The problem is that the cost could be quite high. You might also need to borrow a massive amount to afford the house.

Worse, you don’t have the right credit rating to get approval from lending firms and banks. Your application could end up getting denied because they don’t see you as someone who is capable of repaying the loan.

In this case, you need a broker who can deal with specialist mortgages. You want someone by your side to ensure that you will get the loan and buy your dream house soon.

Access to exclusive deals

Banks and firms offer special deals all the time. These deals provide loans with different terms and conditions than the usual loans they offer. However, you might not be aware that those deals exist. When you have a mortgage broker helping you out, it will be easy for you to get those deals. You might even get other perks that you might not usually get if you opt to go directly to a bank.

Increased chances of approval

These mortgage brokers know people inside. They can help renegotiate the terms to make them easy for you. They can also help vouch for you and ensure that you will not get rejected. They can even help arrange your application documents to convince the firms that you deserve to get the loan.

They have expert knowledge

Brokers have years of experience, and over the years, they have learned the dos and don’ts in the industry. They know what applicants do to get rejected. They also know which banks or firms provide the fairest possible deals. They might even know the information that people outside the circle don’t know. It is like hiring plumbers to fix problems at home. You can do it yourself, but you can’t guarantee that you can fix the problem, because you don’t have similar experience or background to actual plumbers.

Find someone you can work with

Although there are a lot of benefits from having a mortgage broker next to you, not all of them are worth your trust. Some of them might be difficult to work with, and you don’t want them sitting next to you while preparing to apply. Instead of getting help, you might end up becoming stressed. Set up an interview to know if you can work with the broker, or if you will encounter issues in the long run. You also need to see the amount you need to pay before you begin your working relationship.

You will get lots of opportunities when you have a quality broker compared to not having one next to you. Special mortgages are quite challenging to obtain, but if you have an experienced broker, you will worry less.

Image: Pixabay.com

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