Preferred Properties of Texas

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Starter Home… What Does That Mean?

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It is common to hear the term “starter home” quite often. But, as a buyer, you might wonder what that actually means.

You need to understand the basics of buying a home, as well as whether you should invest in your forever home.

You can choose to buy a starter home as a single-family or multi-family home, or even a condo. The average buyer will be able to afford a starter home, but they are likely to outgrow it. The cost of a starter home will be lower relative to the local market.

These homes can be small or large, and may also be older. These homes can also be brand new, but they are still designed to satisfy the needs of entry-level buyers.

While there aren’t all the features that you might want, you can see how a starter home would suit your needs in the short-term.

It is possible that you will stay in your starter house for life. On the other hand you might decide to move on to a better home or a more expensive one.

A forever home can be larger than a regular home, but it may also have more outside space or be updated. Some of the most desirable features in a forever home are those that make it attractive and competitive. For example, it might have a large, private yard or be located in a great school area.

However, the definition of a forever home can be subjective. Some people may find that the home is where they can imagine raising a family. Others might prefer a fixer-upper in a great location that is in need of some TLC, but is still a permanent home.

While a forever home does not have to be extravagant, it is more spacious than a starter house.

There are pros and cons to both a starter or forever home if you are at the point of deciding whether it is worth your time.

A starter home is typically less expensive so that you can save more money for your down payment. This will allow you to start building equity faster. You’ll spend more time renting than you do investing in equity if you wait until you can afford a forever house. Once you are ready to purchase your forever home, the equity that you have will be able to use it as a financing source.

A starter home has the downside that it will likely be outgrown as you move on to a new phase of your life. A starter home may not be sufficient for your needs if you get married or have children.

You can either rent or sell your starter home if you decide to move. You will need to find a new home, apply for a mortgage and pay the closing costs.

There are many benefits to moving from the starter home to your forever home. You can feel secure knowing that you will be able to live in your home for the long-term without worrying about moving or selling.

It is possible to take your time and adjust slowly.

A forever home is more expensive. This means that you will need to save more money and delay building equity.

It is important to only spend what you can afford when buying a house. It is a good rule of thumb to not spend more than 28% on housing costs. Not only should you not pay 36% for debt, but also other loans and credit card debt.

It can be a wise move to buy a home that will last forever. If you sell your home too quickly after purchasing it, you might have to pay capital gains tax if its value increases. If you file your taxes separately, you can get a $250,000 exclusion and $500,000 if you are married filing jointly to capital gains on real property. If you have owned the property for less than 2 years, this exclusion is removed.

Before you purchase a home, consider the long-term potential value. It is important to find properties that are well-respected and have a high potential for resale, regardless of their price. You have to realize that sometimes what seems forever now may not be forever.

Original Blog: https://realtytimes.com/archives/item/1043899-what-should-you-know-about-buying-a-starter-home?rtmpage=

Keep Diversity In Mind When Searching For Land

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Many land buyers make the common mistake of not considering diversity when searching for land. A 500-acre hardwood bottom is what many buyers envision. While it is beautiful and could be a great investment, it doesn’t offer the variety necessary to make the property livable all year without major improvements. Land is not an investment that can be used only once. Buyers should look for properties that offer a variety of recreational and entertainment uses throughout the year.

Before a Certified Land Specialist begins walking properties, it is crucial for buyers to identify and prioritize the intended uses of a property. Buyers often get caught up in the property’s aesthetic appeal and forget to consider their needs and wants. Land is a long-term investment. It is best to not act on impulse or rush to make a purchase.

After you have identified your priorities and walked on the property, it’s time to review the property to ensure that the property meets your expectations. If you are interested in a large dove farm, how much land is available to allow for one? You may need to consult an outside consultant such as a forester, wildlife biologist or other expert to make these decisions and get a clear picture of how the property will fit your needs.

Hunting is still the most popular recreational land use. Each year, over 20 million Americans go outdoors to hunt. Most first-time land buyers don’t consider the potential hunting-based uses of a tract. While they know their favorite two or three types of game, they don’t realize the other game animals that can be used to fill in the gaps between seasons. One prime example is dove hunting. Dove hunting is a wonderful way to get out on your property and improve your wing-shooting skills. Dove hunting is a social hunting option that allows you to invite more people than you could with a turkey or deer hunt. Although dove fields may not be successful in every area, they can give landowners another way to enjoy their property. Trapping or predator hunting can be an exciting way to have fun while helping the game species on your property survive. There are many ways to hunt 365; it all depends on the land you have and who is hunting it.

Diversity of the tract is the key to a variety of hunting opportunities. A healthy balance of open and covered land is essential for a tract. The ideal balance of open and covered land is difficult to determine as buyers may have different hunting preferences. It is important to find property that is flexible, meaning it can grow many crops or timber as needed to meet your management goals. A soil map of the property is one way to find out. These are available at the National Resource Conservation Service office . They may be able help you determine the soil productivity of the tract.

Water is an essential natural resource. We depend on it for our survival. A property with a sufficient water supply may have many uses. The water source could be used by waterfowl as a wintering ground. This could make it an attractive hunting area.

A body of water can enhance the beauty and value of rural land. Landowners can also enjoy the opportunity to fish from their property, especially in the off-season. I evaluate the existing ponds and lakes on the land I am interested in buying when I look at it. I will verify that the property has access to a stream or river. High banks can make it difficult to get your boat into the water to fish the creek or river.

Water has many recreational benefits. It is vital to keep in mind that water is essential for wildlife to thrive on any piece of land. Make sure you understand the water situation before you buy a property. Sometimes water rights can be separated from the bundle rights that are included with a parcel, particularly in the west United States.

There are many activities that a property can support or offer. The landowner must be creative and enthusiastic enough to take part in these activities. Many landowners have begun to build sporting clay courses on their properties for the same reasons that dove hunting: to improve their shooting skills and have fun. While the courses vary in cost and style, all offer shooting practice and enjoyment. The same purpose is served by both archery and rifle ranges. They are great fun, especially in the summer when you get the desire to hunt.

Land is one of the most versatile and valuable investments a person can make. Only the land itself and the buyer’s imagination limit the number of possible uses for a parcel of land. Diversified properties will provide buyers with a lot of options. If you decide to sell your property, the tract’s diversity will increase its value. You can make a strong investment in rural America by focusing on your priorities and looking long-term.

 

Original Blog: https://www.landthink.com/maximize-your-investment-buy-a-diverse-property/

 

Can You Purchase a Home with a Home Equity Loan?

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A home equity loan can be used to purchase a house. However, it is not always the best decision. With caveats, home equity can be used to purchase a second or investment property.

A home equity loan allows you to access the equity in your home by taking out a second mortgage. Home equity is the difference between your home’s value and what you owe.

There are two things you should know if you want to use your equity from your home to purchase another property. Is this a purchase of a second house or an investment?

A home equity loan is a great option if you are looking to purchase an investment property.

You can contribute more to your down payment. You can put more towards your down payment with a home equity loan. You will be more competitive in the current market and your monthly payments and interest rates will be lower.

A second property can be more difficult to finance due to the higher down payment requirements. A home equity loan is a better option and can be more affordable.

Home equity loans are secured by collateral which is your home. You will enjoy lower interest rates as a result.

Your home equity could be an asset in wealth building if you are looking to buy an investment property. You should consider the fact that a second house will not bring you income as an investment. This means you will be borrowing money to buy your second home.

There are downsides to using equity to purchase investment properties. You are effectively trading an asset for debt. You are taking the portion of your home you own and then putting it in a loan.

Housing market shifts can make you vulnerable, especially if you have two properties. If something happens in the housing markets, you’re at double your risk. If your property’s value falls, for example, you could owe more on both your home equity loan or your mortgage.

You could lose both your properties if you default on your loan.

It is possible to end up with three mortgages and only two homes. You will need to combine the home equity loan with the loan for your second house.

A downside to consider is that the interest on your home equity loan won’t be tax-deductible due to 2018 tax code changes.

This is the big takeaway: Yes, you can use your home equity to purchase a second home. Sometimes it’s a good option. However, it comes with risks. It’s not always the best decision. You need to carefully consider your particular situation.

 

Original Post: https://realtytimes.com/archives/item/1043687-can-you-use-home-equity-to-buy-another-property?rtmpage=

Maintaining Your Vacation Home From Afar

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It can be easy to daydream about buying a vacation home as the summer season is in full swing.

After the excitement has subsided, it’s time for you to think about the logistics of buying a vacation home.

It’s easier than ever to keep an eye on your home and ensure it meets the highest standards, regardless of how far away you are.

  1. Hire a trusted person to clean your space. You and potential renters will be able to rest assured that everything is in order. Tip: Do not leave a spare key outside. Instead, give a neighbor a key.
  2. Use technology: In these digital times it’s likely you have many of these devices at home. So why not INSTALL MONITORS around your vacation property. You can add additional protection to your property by installing motion sensor security systems. If you are renting your space, you might also want to consider changing locks that permit you to program the keycode frequently.
  3. Make an owner’s closet This is essential if you have guests coming into your home, whether they are seasonal renters, property managers or family members. A special lock can be used to secure a closet or room. It will allow you to store personal items and sentimental items. Pro-tip : Keep important documents in this area safe.
  4. Don’t leave your house empty. A vacant home is a prime target for burglars who are most likely to be looking for the easiest targets. It is important to ensure that mail, newspapers, and deliveries don’t pile up in your vacation home. Good practices include cleaning gutters and maintaining a neat landscape. Pro-tip: Install smart lighting fixtures inside your home that can be controlled remotely. These can be turned on and off frequently so your home looks liveable from the outside.
  5. Get to Know the Area Whether you plan to spend time on your property or rent it out, it is a smart idea to make connections. Know your neighbors and local activities. You can also network with handymen and cleaning services to help you maintain your property.
  6. Register to get police checks: Check if your vacation property is located in the U.S. for vacation home inspections. Many towns offer programs that allow registered volunteers or police officers to periodically inspect your home’s perimeter while you are away.

A vacation home can be a great investment and holds important sentimental value. Make sure it is safe and in good order while you are away.

 

Original Blog: https://www.landhub.com/land-news/maintaining-your-vacation-home-from-afar/?inf_contact_key=0e6a37f5af7fb89e0c179edd2f733cf1680f8914173f9191b1c0223e68310bb1

Thinking Of Buying A Vacation Home?

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Most people have vacation in their heads as the summer season begins. It is important to research all aspects of a potential purchase before you make an emotional decision.

It’s tempting to make big decisions after a vacation. Here are some things you need to remember before purchasing a vacation house.

The pros and cons of buying a vacation home

  • It is an investment and will increase in value, especially if it is located near popular areas such as the beach or mountains.
  • This property can make your vacation more enjoyable. It will save you money and let you stay longer than you would in a vacation rental. It will also allow you to invite your loved ones for some R&R.
  • Rent out the property to make money during your absence or rent it out to vacationers.

The cons of buying a vacation home

  • It is expensive to rent vacation properties. Additional mortgages, property taxes, insurance, and utilities will be required. These costs can reduce savings in other areas, such as retirement or college funds.
  • You must consider security and maintenance when you aren’t there. You can still monitor your property remotely using modern technology. But what if you are far from your primary residence?
  • Are you going to get bored of the view? It’s important to not make an emotional purchase when buying a vacation home. Are you sure you will want a change of scenery within a few years? Are you going to stop taking vacations abroad because of this investment?

Important Information to Consider Before You Buy a Vacation Property

While you have the pros and cons listed above, there are still some things that you need to know when purchasing a vacation home.

  1. Think about the things you want in a vacation home. What are you looking for? What do you see yourself doing with this property? What is the most frequent you will be able visit this property? These questions should be answered in detail. You can use these answers to help you find the right property.
  2. Understand the financial implications of vacation homes. Many buyers don’t realize the higher mortgage rates for a second home. The rules for financing a second residence are different from those for a primary residence.
  3. Do your research. Buying sight unseen is becoming more common in today’s real estate market. However, with a large investment like this, it’s important to know the area. Is the property close to shops and restaurants? These are important things to consider whether you will be renting or living in the home.

It’s an exciting idea to own a vacation home. But make sure you do your research so that you can find the right fit.

Ready to purchase? Contact Preferred Properties of Texas today!

 

Original blog: https://www.landhub.com/land-news/buying-a-vacation-home/?inf_contact_key=9a8e94f992f9eb8392bcff3da9fc2f74680f8914173f9191b1c0223e68310bb1

There Are Many Signs That The Home You’re Buying Will Have A High Resale Value

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Although it may seem premature to consider selling your home before you actually buy it, it is important to remember that a house can be an investment. In an ideal world, investments would make money and not lose it.

When house hunting, resale values should be considered. It shouldn’t be the only thing that you consider when buying a house. If you want 20 acres or lakefront access, should be your priority. You will be happier if you can predict the future appeal of the house you are buying and the surrounding area it is located. You might even be richer.

Buyers will save a lot of money by considering resale values. They won’t have to spend a lot on renovations and updates. A high resale price is not a guarantee.

Because of the effect of the local market and economic factors, it is difficult to ensure that a home will retain its full value.

When house hunting, pay attention to the surroundings. Is it easy to get around the neighborhood? Is it possible to walk to the grocery store without having to stop for snacks? Are there nearby restaurants for those evenings you just cannot?

You won’t get a high return on your home if it isn’t well-developed or has poor infrastructure.

A home purchase is a study of contrasts. You need a beautiful kitchen and good delivery options. Five bedrooms is the minimum requirement. You also need a decent hotel nearby. Your mother-in-law will not be staying with you. You want everything to be bustling, but not in your backyard.

There are buyers, and maybe even you, who love to live in the middle all the action. Be aware that your future buyers may not be as keen to buy the bungalow right next to your favorite watering hole.

Many people view return on investment as the sum of simple calculations: Will your home sell for less than what you paid?

The inspector will give you an overview of the health of your home. However, it is important to pay attention to the roof, foundation, HVAC system, windows and doors. You should also pay attention to electrical and plumbing. Any problem with one of these systems could lead to a costly repair that can take a chunk out of your paycheck.

 

To read more click on original blog: https://www.realtor.com/advice/buy/home-youre-buying-good-resale-value/

Preferred Properties of Texas

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