If you are thinking it’s time to purchase your first real estate investment property, here are a few things to consider first.
• Purchasing the Investment
The best option when buying an investment property is to pay cash for it, no financing. Now, if this is not possible (don’t worry not everyone can do this), you need to make sure that if the property is vacant, you can pay the mortgage. There will be times when this happens and making sure that the mortgage continues to be paid is crucial. One way to do this is to put the surplus from rent into an account. This account can be used for the times when the property is vacant or when repairs need to be done.
2017 is underway and there are several predictions in real estate that you should take into consideration if you are planning on selling or buying a home this year.
1. Home prices are expected to continue to increase. That being said, the increase is suppose to be a bit slower than 2016 (3.5% in 2017 versus 4.5% in 2016).
2. Inventory levels for smaller homes have decreased tremendously compared to more expensive homes.
3. Interest rates are expected to increase post-election. The increase is estimated to increase up to .5%. Although that doesn’t seem substantial, in addition obtaining a first-time mortgage will likely be more difficult also.
When closing on a new home purchase, lenders typically require you bring evidence of a homeowner policy on the new property. It’s their way of making sure their investment is protected.
Most homeowners tack the monthly insurance premium into their mortgage escrow amount. Lenders tend to prefer this option because then they can make sure the premiums are being paid.
When looking for homeowner insurance, here are some tips for making sure that you get the best coverage:
1. Solicit at least three quotes on insurance. This will allow you to adequately compare coverage. Be sure to take price (premium), coverage options, and customer reviews into account when selecting your insurance company.
Experience, professionalism, and commitment to service are the keys to my success in real estate. Helping people find the right property is one of my strongest values.
Read what some of my clients say about their experience working with me.
"Lynn always made herself available when needed" ..... C. Simpson
"Lynn knows her "stuff". She is very professional and an exceptional agent. She helped me approach all aspects of a complicated transaction in a very calm and well informed manner. Lynn made a sad situation feel better - I will be happy to refer her to anyone I know looking for a realtor - Thanks Lynn".....Barbara C.
"I have dealt with several Realtors in different states, but Lynn was, by far, the best. Very knowledgeable and professional." . . . Dan T.
"Lynn went above and beyond and made the entire buying experience enjoyable. We would recommend her to anyone!" . . . Rich & Jamie G.
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This document was printed from the Web site of Lynn Bjorvik (www.century21mcmullen.com).