How to Choose a Good Investment Home

Property prices in many parts of the world are on the rise and now may be a great time to invest in real estate. However, before you go splashing your cash on new homes, it’s really important that you know your stuff. The following tips could help ensure you spend your money wisely.

Monitor the market

First and foremost, you should always keep tabs on property market trends. Being a successful real estate investor is all about buying in the right place at the right time. If you succeed in doing this, you could make impressive returns within a relatively short period of time. If you get it wrong, you may only break even when you come to sell up or you might even make a loss.

Bear in mind that it isn’t only macroeconomic factors that have an impact on property values. Markets in specific areas are affected by local issues. For example, regeneration projects can significantly increase demand for real estate in particular locations.

Ideally, you should get in there quick if you think property prices are set to increase in a certain spot. The sooner you buy, the more money you stand to make.

Take on a project

Investment Home


When you’re engaged in a property search in Callington, it can be tempting to look for perfectly completed homes that need zero work doing to them. This is certainly the easy approach. However, it may not be the most profitable. The best property bargains are those that need a little (or sometimes a lot) of TLC.

Taking on a project can lead to impressive returns on your investment. However, before you make an offer on a home that needs to be refurbished, you must make sure you’re up to the task. Most importantly, you will need to have enough money left after making the purchase to complete the project. Bear in mind that most revamps run over-budget, so you will need some leeway too.

Also, it’s important to realize that refurbishments can be stressful and time-consuming. This means they are not something to undertake lightly. If you’re already run ragged with your commitments at work and home, this could be a step too far.

Go for a property with enduring appeal

Last but by no means least, make sure that the home you select has enduring appeal. Properties in commuter belts tend to perform well on the property market, as do those in university towns and cities. Homes that are well served by local shops and amenities are also good options. Meanwhile, a reputable local school helps to buoy property values.

Research also suggests that period properties tend to appreciate in value more than new builds. This is another issue to consider when you’re perusing your options.

You can never eliminate the risks associated with property investment. However, as long as you’re savvy in your approach and you follow tips like these, you can maximize your chances of success. Ultimately, you stand to make a healthy profit and bolster your long-term finances.

How Your Kids Can Help You Get The House Of Your Dreams

When you are looking to make the most of your money, few of us can argue that bricks and mortar are a good, long-term investment. While the housing market takes its knocks, over the life of a mortgage, it is unusual for a property to be worth less than the original purchase price. Provided you have maintained the home, and been savvy with your mortgages, owning a home can be a great investment.

When you have settled in your home for a few years, it may be worth thinking about your future with it. Do you want to stay there through your retirement and leave the family home to your children? Maybe you will look to downsize to an easier-to-manage property and live off the equity you built up. However you see your future, considering the wishes of your children is important.

If your home is valuable, they may be prone to inheritance tax. With multiple children, family fights can soon escalate over probate and Wills, so try to have an action plan in place to relieve the effects of this. It may be that you need to sell the family home to make your life more comfortable as you get older. Your children may be emotionally attached to the house, so be sure to include them in any discussions. They may want the option of buying the house from you.


Multigenerational Family pic courtesy of Netlivre

Some people prefer living with their children and their families as they start to age. Annexes attached to a child’s house can make for a comfortable, albeit cosy option. Others are tying in with the children’s finances to purchase larger, country homes together. This affords you and the grandchildren more quality time together, and a quality of life for all of you that you may not have imagined possible before. In the UK, prices vary wildly depending where you are. It may be your children have jobs they are committed to staying in a particular area for. Why not look online at country houses for sale in Plymouth Mutley or your preferred area to see some of the options available to you?

Once you have found a house you can all get along in, you may need to seek independent solicitors to help you navigate the legal implications of the purchase. Buying together could mean no mortgage is required, but you will still need to declare what percentage of the property each of you holds. If a mortgage is needed, it can be tricky to find a lender to help, so be sure to understand the legal implications of your joint purchase. When you have consulted your solicitor, you can approach a mortgage lender who has the right product portfolio for you.

While buying together can be difficult and cause friction between you, the lifestyle it may afford you could well be worth it. There are many properties in the country to suit a very large family, but funding it shouldn’t have to cause heartache and upset. Speak at length with those involved, and ensure any other family members that will not be a part of this agreement, are happy to support it.


How Can You Protect Your Earnest Money Deposit When Buying a House?

When you buy a house in the States, you are usually asked to pay an “earnest money deposit“, otherwise known as a “good faith deposit”. This amount is not the same as a down payment. Instead, when a property buyer signs a contract to buy a house, they agree to pay a certain amount in good faith. This deposit is to secure the contract. The contact also agrees on the amount to pay as down payment. The amount the buyer will pay can vary as there isn’t typically a set rule. For example, in California a contract must contain a clause about an earnest money deposit, but it can be as little as a dollar. The purpose of the earnest money deposit is to express the buyer’s commitment to buying a property. When you go through with the sale and close the contract, your earnest money deposit goes towards the total of the down payment.

Buying a House

Doug Kerr

Protecting Your Deposit

But how can you make sure you keep your money safe when you pay an earnest money deposit? If you aren’t careful, you could fall victim to a scam and someone could make off with your hard-earned cash. In order to avoid this happening, there are some rules you should follow. Firstly, you should never give the money directly to the property seller. Instead, it should be paid through a third party, such as a reputable real estate broker, legal firm or escrow company. The third party should deposit the money into a separately maintained trust account. And you should make sure to obtain a receipt for the payment. Don’t release your money until you have closed the deal on the property. You can then pay your downpayment and, once you’ve moved in, your mortgage payments too.

Getting Your Deposit Back

If you choose to withdraw from the contract, you may or may not be able to get your money back. This will depend on the law in your state, as well as your individual contract. In some places, you can withdraw and get your money back within a certain period. Cancelling the contract could result in a dispute if there isn’t agreement about whether the buyer has forfeited their deposit.

Other Methods of Protection

On top of making sure you pay your deposit through a third party, how else can you make sure you don’t lose any money? One way is by not putting the money forward in the first place, and this involves thoroughly inspecting the property. If you spot any potential problems before putting a deposit down, you eliminate the risk of losing your deposit later. When you work with estate agents  in Letchworth or your local area, they can advise you about professional inspections of the property. A professional inspection is much more reliable than walking through the property by yourself.

Once you have made an offer, you can help yourself by reading the seller’s disclosures carefully. Making sure you understand all the information will help you make an educated choice about whether to buy. Knowing that you won’t change your mind is the key to protecting your deposit. If you definitely buy the property, you won’t lose any money.