Investing in real estate requires some fundamental understanding of words used in the industry. Here are some basic definitions.
Mortgage insurance: Insurance which covers the borrower when there is a default in payments to the lender required by the mortgage and there is a shortfall when the property is sold. The premium is paid by the borrower usually as a once-off payment at the commencement of the loan.
Joint tenants: A legal mode of ownership of property by more than one person. Joint tenants own the whole of the property in equal shares. When one joint tenant dies, that share goes to the remaining joint tenants equally.
Tenancy in common: An alternative mode of ownership where more than one person owns the property but this time in set proportions as the title indicates. So the proportions do not have to be equal. Also, if one owner dies that person can will their share to an outside party if they wish.
Easement: A right to do something—such as walk or drive over the land of another. Generally the owner of the encumbered land cannot build over the site of the easement or block the passage.
Equity: The net capital value of an asset free of all loans and debts. For instance, if you own a property valued at $400,000 and it is subject to a loan of $250,000, your equity in the property is $150,000.
If you have a question about real estate, or would like assistance in locating or selling a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Monday, August 23, 2010
Friday, August 13, 2010
Saving Up for a Deposit
Don’t despair if you haven’t got the money yet for a ten percent deposit. A positive outlook, a budget and a plan will get you over the line.
Professional advice is extremely useful. There’s help out there if you seek it. Traditional means of accruing money include:
• An inheritance. This is a particularly good moment to seek a qualified financial planner for assistance.
• Your family helps with the deposit.
• You marry and your spouse helps with the deposit.
• You study hard and obtain a better-paid job.
• You start your own successful business.
• You systematically save and invest wisely.
Remember all these methods work at least twice as fast if you have a stable, long-term relationship and both parties have the same objectives with enthusiasm.
Most importantly, saving starts with a plan and a budget. Add up your monthly expenses and total that against your income. Where can you trim expenses? Do you need two cars? Maybe cut back on your restaurant outings. Can you save on your phone bills?
Conversely, look at ways to earn extra money. What about working at the weekend markets, taking on casual work or having a garage sale?
Whatever plan you choose, it’s better than no plan at all. And as the savings mount up there is tremendous satisfaction, especially when you saved enough to make that long-anticipated deposit on your new home.
If you have a question about real estate, or would like assistance in locating or selling a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Professional advice is extremely useful. There’s help out there if you seek it. Traditional means of accruing money include:
• An inheritance. This is a particularly good moment to seek a qualified financial planner for assistance.
• Your family helps with the deposit.
• You marry and your spouse helps with the deposit.
• You study hard and obtain a better-paid job.
• You start your own successful business.
• You systematically save and invest wisely.
Remember all these methods work at least twice as fast if you have a stable, long-term relationship and both parties have the same objectives with enthusiasm.
Most importantly, saving starts with a plan and a budget. Add up your monthly expenses and total that against your income. Where can you trim expenses? Do you need two cars? Maybe cut back on your restaurant outings. Can you save on your phone bills?
Conversely, look at ways to earn extra money. What about working at the weekend markets, taking on casual work or having a garage sale?
Whatever plan you choose, it’s better than no plan at all. And as the savings mount up there is tremendous satisfaction, especially when you saved enough to make that long-anticipated deposit on your new home.
If you have a question about real estate, or would like assistance in locating or selling a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Subscribe to:
Posts (Atom)