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Can You Help Your Children Onto The Property Ladder In 2020?

May 31st, 2020 Posted in family finance, Property Investment
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Owning a home of your own is getting harder than ever. With spiralling rental rates, increasing cost of living and slow growth in wages, many of the younger generation are finding their dream of owning a family home of their own is getting further and further away. So if parents are in a position financially to help, it can be a wonderful thing to do – and help to give your kids security for the future. If they are already saving hard to pull together the money required for a deposit, it can still be slightly beyond reach without a parental helping hand. And with mortgage costs frequently lower than the cost of renting,your children will be able to save money in the long run if they get that first time house. So how can you help the situation?

Can You Help Your Children Onto The Property Ladder In 2020? - family photo image
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Gift A Lump Sum

If you can afford to give a lump sum, this will really help towards the considerable costs of a deposit. Often affording the mortgage isn’t the issue, it’s overcoming the barrier of having a high enough Loan To Value (LTV) amount. If you can supply part of this, your children could be able to get on the property ladder with a new build home. When planning this move, it’s important to consider the full picture of your own future finances and possible retirement. Speak to an independent financial advisor is critical to help you make the right move. 

Provide A Loan

If you can’t afford to gift a large amount, you could act as a lending facility instead. This can be a good option if you have access to savings that you don’t need now, but will need in the future. With interest rates at a historical low, you’re not losing out on much by not having them sitting in the back, and you may be able to make borrowing some of the amount of a deposit affordable for your kids, through either not asking for any interest or keeping it very low and the repayment terms flexible. In all these matters, it’s very important to be able to have an honest discussion about money with your family and be very clear exactly what you are expecting to be repaid and when – also get this in a formal legal contract notarized by a solicitor to avoid any confusion.

Take Out A Family Mortgage

Offset mortgages, where 100% of the property value can be borrowed, are also sometimes an option. These loans would be secured against the value of your own home, or sometimes allow you to deposit money into a savings account that acts as a security in the event of non-payment. However, if your child doesn’t keep up with payments, your own home or retirement funds may be at risk. Make sure you talk about affordability and contingency plans with your children before deciding on this option.

There are lots of ways you can help out financially when it comes to getting your children onto the property ladder, but don’t forget that emotional support is just as important too – always be ready with a cup of tea and a listening ear.

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Setting Goals: Is It Too Late to Start Investing in Real Estate When You’re Into Your 40s?

May 11th, 2020 Posted in Property Investment
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Real estate investing is a great opportunity for any adult. However, consumers in their 40s are more prepared for investing and accumulating assets. At this age, the consumers could find a better opportunity to generate an estate for their heirs. Reviewing investment goals and determining if investing over 40 is a great idea helps mature consumers make more sound choices about obtaining assets.

Setting Goals: Is It Too Late to Start Investing in Real Estate When You're Into Your 40s? - newly built house image
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Setting Up a Plan for Managing Capital Gains

Setting up a plan to managing capital gains helps the consumer invest in real estate without incurring extensive tax implications when the property sells. Creating a better plan helps the investor avoid higher than average tax implications. The plan could prevent the owner from selling for at least one year after they are ready to start the process. The owner can also offset their capital gains within a few years after they sold the property. It is also better to sell the property when their income is lower than average to prevent a serious increase in their tax implications. Discussing the plan with an advisor might help the investor Reduce Capital Gains more effectively.

Set Up a Plan for Buying Rental Properties

Setting up a plan for buying rental properties helps the more mature investor gain a chance to generate residual income. Consumers in their 40s are looking toward retirement and how to get ready for these steps in the future. Purchasing a rental property gives the investor a chance to generate enough extra income to maximize their income when they retire. Owning a rental property requires the owner to maintain the property and ensure that it is safe for tenants. The venture could lead to the acquisition of additional rental properties that give the investor a chance to retire earlier and enjoy more of their life without working until they are 65.

Buying Real Estate at Auction and Flipping It

Buying real estate at auction with the intentions of flipping it requires the investor to do their homework. It isn’t an investment to go into blindly. The buyer must have the physical ability to renovate the home themselves or have access to a crew or contractor that will perform the services for them. Once the property is repaired, the investor places it on the market on their own or through a real estate firm.

Investing in a Vacation Home

Investing in a vacation home gives the consumer a chance to buy a second home in an area they love. Typically, consumers who are in their 40s have either paid off their mortgage for their primary home, or they are just a few years away from it. If this is their situation, a second mortgage won’t present financial hardships. Additionally, the mature investor could lead the properties to their heirs without existing debt.

Why Is It a Great Idea to Invest When You are Into Your 40s?

In their 40s, the consumer is wise enough to understand how to acquire a sound investment. While most consumers don’t wait until they are in their 40s to invest, these mature investors are quick savvy and might make better choices that are more lucrative.

Real estate investments increase the value of the consumer’s estate and help them acquire assets for their heirs. Real estate is a great choice for investments even for consumers who are in their 40s. Reviewing options for real estate investments helps the consumer find the best investment for them.

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Steps To Take Before Selling Your Home

February 29th, 2020 Posted in Money Tips, Property Investment
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Whether you’re keen to move around the corner, or you’re thinking of upping sticks and relocating to a different city, county or country, it’s wise to plan ahead if you’re selling your home. Unless you find yourself in a situation where you need to sell unexpectedly, it’s worth taking a few steps before the for sale sign goes up. 

Steps To Take Before Selling Your Home - property investing real estate family home image
Bildet er tatt av Paul Brennan fra Pixabay

Sprucing up your property

If you’re preparing to put your house on the market, it’s natural to want to get the best price. Before you invite agents around, or start taking photographs for galleries and brochures, take a tour of the property, note down any jobs that need doing and give your home a spruce. Simple things like freshening up the paintwork, fixing broken doors and cleaning the windows can make a huge difference. It’s also a great idea to clean and tidy up and to declutter.

Many people will judge properties based on aesthetics and the images they see when they look online. It’s also important to note that your home will attract attention when there’s a for sale sign up outside, so enhancing curb appeal is a good idea. Paint the front door, add plants or a hanging basket to make the property more welcoming and tidy up the driveway and front garden.

Choosing an agent and exploring selling options

When it comes to selling your home, there are several crucial decisions to make, including how you’re going to sell the property and which agent you’re going to choose to market your home. Most people sell through estate agents that manage viewings and the negotiation of offers, usually over a period of time, but auctions are becoming more popular. If you’re keen to sell quickly, or you want to maximise your chances of getting a good price and wrapping up the transaction without any ups and downs and unexpected turns, you might be interested in considering an agents property auction. Some agents deal with auction properties, as well as traditional sales. If you are thinking of selling your home at auction, it’s important to think carefully about setting a reserve. Whichever method you choose, it’s worth doing some research into house prices in your local area and asking a series of agents to provide you with a valuation. The valuation will not dictate how much you get for your home. You might find that there’s a significant difference between the valuation and the offer price, especially if the supply of houses outweighs the demand in your neighbourhood. 

Putting future plans into place

If you’re looking to sell, it’s wise to think about and plan your next move. Selling houses can take months, even years, but in some cases, the entire process can be completed in 6-8 weeks. If you’re thinking about buying property, figure out a budget and start searching for houses that match your criteria. If you’re toying with the idea of renting, contact local agents, arrange some viewings and create a short-list. 

Before you put a for sale sign up outside your home, take these steps. Hopefully, they will lead to a quick, seamless, stress-free sale. 

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What You Should do to Prepare Before Buying a Home

February 24th, 2020 Posted in Property Investment
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Before you begin the process of buying a new home, it makes sense to think about what you’re doing and what you’re getting into. It’s a long process and planning ahead and doing as much preparation work as possible will certainly pay off for you. It’s always going to be a challenge, but it’ll be more manageable if you prepare properly.

We’re going to discuss some of the things you might want to think about and put into place when preparing to buy a new home. There are many approaches that can be taken but we’ll cover the things that matter most as you prepare to make a real estate purchase.

What You Should do to Prepare Before Buying a Home - family house image
Bildet er tatt av tkoch fra Pixabay

Save More Than Enough Money Than You Think You’ll Need

Before you even begin the process of buying a new home, you should save plenty of money and be sure that you have enough set aside to cover the costs of the move. Of course, the deposit is the most important lump sum, but there are other costs and expenses associated with moving and buying a place that you’ll need to take into account too. That’s why it’s important to always save more than enough money than you think you’ll need.

Get Your Finances in Order Generally

Getting your finances in order and ensuring you understand your financial situation inside out is essential when you’re about to buy a home. You want to know for sure that you have enough money to cover all of the main costs, but you’ll always want to be clear about how much this will cost and that you’ll have access to money when you need it. Having access to liquid money might be necessary, so start planning ahead.

Be Specific About What You Want From a New Home

When choosing a home to buy, you should try to be as clear as you can be about what you’re actually looking for, as well as what you’re not. Be specific and don’t leave it to chance when it comes to finding the one that’s right for you. You should have a list of priorities already in place before you even set about the process of browsing the options on the market.

Get to Know the Area You Want to Move To

It’s a good idea to get to know the area that you’re interested in moving into. That way, you can get a feel for the place and how your lifestyle might work here. And you’ll also get to know a bit more about the local property market as well, and that’ll definitely be useful to you later. Places like the Perth Hub are location specific and resources like this can be really helpful when you start your search for a home in a particular place. 

Get the Right Professional Assistance

Getting the right assistance from professionals who really know what they’re doing will be important as well. A good estate agent will make your life so much easier and there are all kinds of other professionals such as reliable movers that you will need to seek out and find as you prepare to make this move. Don’t think you can go it all alone because it’s far too difficult when you try that. 

Have a Clearout

As you prepare to move house, it makes a lot of sense to take the opportunity to clear out your home. There’s no sense in keeping hold of things that you don’t really need, especially as it’ll just make the physical process of moving more difficult than it’s already going to be. Throw away or sell on things that are of no interest to you now and that you don’t see any need to keep hold of.

Clean Up in Advance

It’s always expected that the seller cleans the home before they move out and hand the keys over to the new owner. This is something that you should start to do way ahead of time, so if you want the actual moving day to be less stressful, you should think about how you can plan ahead and start cleaning up the home well ahead of time.

Buying a home and making a move means a lot of stress and hard work. It’s never easy and it’s rarely smooth sailing when it comes to buying a place and moving into it. However, if you prepare properly and go through the steps we’ve discussed above, the transition into your new place will be as smooth as it can be. 

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New-Build Vs Renovation Project – Which Should You Buy?

February 20th, 2020 Posted in Property Investment
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For first-time and more seasoned buyers alike, one of the first questions they must ask themselves when looking for a property is, should they buy a new-build or should they look at buying a house with potential, but that needs a little extra work? Both new-builds and renovation projects come with their own sets of pros and cons, so we’ll take a closer look at some of them in this post to help you decide which may be right for you.

Property and real estate investing New-Build Vs Renovation Project - Which Should You Buy? - family house image
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New-Build

New-build sites such as Wyndham Ridge are cropping up all over the place, advertising beautiful views, prime locations and modern houses – but what do they deliver? 

Pros of a new build 

  • They’re new
    Perhaps the most obvious pro of a new build home is precisely that, it’s new – which means it tends to be free of faults and flaws that many homes gain with age and you can move in knowing that you should have many years before you need to start making any dramatic renovations. New properties are also built to higher energy efficiency standards that can save you money.

  • They often come with a guarantee
    New-build sites often come with guarantees of up to 10 years, meaning that should anything go wrong in your home within that period, it will be fixed, free of charge.

  • They’re community-focused
    Many new-build developments have a strong community focus and include elements such as children’s play parks and community meeting points to make them feel like a part of their own village.

  • They’re a blank canvas
    A new build property is an ideal blank canvas and some companies will even let you choose your own fittings if you are buying off-plan. 

Cons of a new build

  • They lack character
    New-build homes tend to be a part of a larger new-estate in which many of the homes look the same, lacking character.

  • They can be more expensive
    Purchasing a brand-new home can be more expensive than buying a run-down property and doing it up. They also may come with a service charge which must be paid annually for the upkeep of the communal areas. 
  • They can encounter issues
    New homes haven’t proven that they can stand the test of time and you could experience issues once the house begins to settle. 

Renovation Projects

Renovation projects are a popular choice with those looking to turn a profit on a home, but do they really work out better?

Pros of a renovation project

  • Character
    Perhaps the biggest pro of a renovation project is that the property will likely have history and character.

  • Profitability
    A new build property will only increase in value if the area it is in increases in value, a renovation property, on the other hand, can increase in value due to the renovations you make and therefore can turn a quicker profit.

  • Room for negotiation
    Renovation properties usually have room for price negotiations as you are dealing with a single owner rather than a corporation. This can make them more affordable for first-time buyers. 

Cons of a renovation project

  • They require effort
    The biggest con of a renovation project is that they require effort, whether that be from a builder or your own fair hand.

  • Costs can build-up
    Renovations can reveal hidden issues causing renovation costs to rise and making the project potentially more expensive than planned.

  • Chains
    Many renovation projects come with a chain, meaning that you’ll be waiting for other parties to sell their home before everything can go through. 

Conclusion

New-build homes and renovation projects clearly sit at opposite ends of the spectrum, and which you choose will largely depend on how much effort you want to put into the property, the importance of character and how much you’re willing to spend. Only once you know what your priorities are with your property can you decide which to buy.

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