Selling a house for cash is becoming a popular alternative for homeowners who need to sell their property quickly. With the current credit clog and sluggish real estate market, many sellers are finding it difficult to locate qualified buyers. Instead, they are turning to investors who are able and willing to ante up cash. Selling a house for cash is no different than selling to a buyer who obtains traditional financing. However, there are benefits with cash transactions that cannot be obtained when the buyer requires funding through a bank. The primary benefit of selling your home for cash is the deal can be closed in a matter of days instead of weeks. There are no long forms to fill out with the lender and no waiting for approval. Currently, …show more content…
With the ever-growing unemployment rates, people are afraid to buy real estate for fear they will lose their job and then their home. They aren't willing to take that much of a risk. Nearly every homeowner is feeling the pain from lack of qualified buyers. On the other hand, real estate investors are buying houses all across the nation. Many of them are purchasing properties with cash simply because traditional lending sources have dried up. Although the media likes to project financial gloom and doom, there is still an abundance of private money available. Established investors are able to tap into that money to expand real estate portfolios for their self and clients. When selling real estate to a private investor, the seller benefits from their expertise. Many investors are skilled in foreclosure and short sale transactions. Both require extensive knowledge and developed relationships with various lenders. Short sales are particularly tricky and require specific documentation. Homeowners who have obtained short sale approval aren't able to profit from the sale of their home. Instead, they must locate a buyer in exchange for the lender accepting less than is owed on the loan. Working with a short sale specialist can increase a successful outcome
Collateral for the defaulted loan. Distressed real estate involves making a distressed purchase. According to Financial Crisis (2011), “[A] distressed purchase is whereby the property owners are usually in a foreclosure/short sale situation.” Foreclosure applies to a residential real estate loan in which a bank or creditor repossesses a home because of nonpayment. The institution will legally possess the right to resell the property as collateral for the defaulted loan. The selling price can be sold at a price equal to or greater than the original loan. The reason distressed properties can be bought at a lower price is the institution has already received a series of payments toward the original home loan. In many situations the lender can sell the house for a lower cost than the normal market value, leaving the buyer the opportunity to make a purchase at a lower selling price than market value and reselling the property at a profit (Demand Media, 2011).
When working within the realm of real estate, flipping houses is one of the most lucrative projects one can undertake. The premise of this idea is buying a home in need of repair, renovating it, and selling it at its newly appraised value. In high school, I worked alongside my mother to renovate a home in our small town of Trinidad, Colorado. The invaluable lessons I learned throughout this business venture gave me insights into the inner workings of house flipping. What I gained from this experience will lead to better decision making if I choose to take on another project. With a $150,000 budget, the most important aspects to focus on in a renovation would include updating appliances, applying fresh paint, installing proper flooring, and revamping the exterior. Assuming that the home being foreclosed on costs $110,000, I would allocate $20,000 of my budget for renovation expenses. This leaves a $20,000 buffer to be used as an emergency fund.
Some of the realtors are pushing the home owners to sell the house; therefore,
Buying or selling a house or an apartment is one of the biggest decisions of a person’s life. And when selling or establishing a price for real estate, people seek out real estate agents to do the dirty work. A real estate agent has to convince a prospective homeowner that he or she is trustworthy and knowledgeable. In many ways, the agent acts as a counselor to individuals and families about to embark on a huge commitment. Real estate agents have a thorough knowledge or real estate market in their community. They
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
Not only is this a sign of an unstable economy and a poor handing out of loans overall, this is happening right now in Canada. “Canadian personal debt remains at record levels as well. The average Canadian household owes $1.64 for every dollar in disposable income. This is higher than the peak in the same ratio from the United States back before its housing market collapsed,” according to Fool.ca. Not only can this be attributed to Canadians themselves but foreign investors. “Foreign buyers–mainly Chinese nationals–were desperate to get capital out of China. Many of them bought Canadian real estate not as an investment, but as a store of value. With China’s main stock index plunging daily, much of this wealth is now disappearing. This combined with oil’s weakness now really being felt around the country could bode very poorly for Canadian real estate in 2016”. Every single day foreign buyers, mostly Chinese nationals are buying up space and homes in Canada at ridiculous prices to store value. This influx of wealthy Chinese people moving to Canada can be seen in schools all throughout the country. Small cracks in the structure have already been seen in Alberta where prices in Fort McMurray have fallen by more than 100,000$. The author of the article “Why 2016 could be the year Canada’s housing bubble bursts” says “
Fixing and flipping houses is one of the more popular strategies for making money in the real estate market. It is one of the more looked down on strategies as well, but that is easily overwhelmed by the fact that the good old fix and flip is one of the most profitable strategies in the business.
“Hot off the press! Get your guide on what not to do when purchasing a home.” I wish I had a guide like this one before I purchased my second home. I had warning signs all around me that I chose to ignore. The only thing I knew for sure is I wanted a four bedroom two car garage and I was going to get it anyway possible. Later I received a crash course on the grueling process of going through a short sale and all the stress it puts on your relationship. Though losing this home, I learned not to take on more than I can handle. This is important because it can put a lot of pressure on your marriage, family and you.
Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.
More than 30 percent on housing and persistent inequality in housing and employment opportunities has gone down. That has created a significant lower homeownership rate for African -Americans and Latino families. Many people believe that the mortgage rates in America is threating the confidence of homeownership. I strongly believe that statement is true because seeing what foreclosure has done to Americas economy it tends to drain and disrupts a person state of mind of striving and going for what they want. It mentally crushes them which later leads to sorrow and sadness emotionally.
When prices increase, the quantity decrease (Graph 1) and new firms enter the market in order to make economic profits. However this does not mean the real estate agents or brokers earn more money. On the contrary, the prices they charge may increase, but the number of houses each sell do not change (Goolsbee, 2005, Online). From this it is evident that the price of products in the real estate market is not affected by the entry of new firms.
Buying a home is more complex then most think. A purchaser of a home doesn't pay in cash when buying a house. If that were so, then nobody would be able to afford one. A potential buyer must get a loan. The bank doesn't lend their money to just anybody, so there are prerequisites before a buyer should consider buying a home. The potential buyer must have enough money for a down payment which is 3% to 20% of purchase price, a steady job with for at least two years or more, must have a decent credit score with at least a 640 or better. That is standard for the market. (1) The credit score is based on the FICO score. FICO stands for, Fair Isaac Corporation, a company that has been in business since the early 1950's and monitors consumers' credit ratings and put a scoring system on it. (2) Conventional loans are usually financed up to eighty to ninety percent with a down payment required of ten to twenty percent. The potential buyer must also have a debt ratio not exceeding 28/39 of their income. The first number 28 refers to your new mortgage payment that cannot exceed 28% for your gross combined income and 39 refers to your mortgage payment plus revolving and installment debt as well as taxes and insurance cannot exceed 39% of you total combined gross income (3).
In order to understand the concept of financialization and the housing market on the global and local level, one must know that there is a global pool of money that is simply the worlds savings bank. In 2000 the pool had $36 trillion and has since doubled in size (Blumberg 2008). Its most recent profit increase was a result of developing countries and cities such as India, Abu Dhabi, and China making money. This doubled the cash pool available for investments, but left fewer solid investments for the taking. The solution was residential mortgages and the US housing market. The investment managers thought the low-risk high-return investment in the housing market was a good, stable idea. The glo...
Real estate is a fixed, tangible and immovable asset in form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants includes developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that make impacts in the market (Seldin & Richard 1985).
DEMENTIA VILLAGE PIONEERS NEXT LEVEL OF SPECIALISED CARE IN JOHANNESBURG, BRYANSTON “The concept of dementia care villages has at its heart improved quality of life for people living with dementia and Alzheimer’s disease,” says Livewell Group CEO and founder, Jimmy Hanekom. “Such a facility aims to provide an even greater sense of independence to its residents in a secure and homely environment.” Livewell Group, the South African dementia care pioneer, has incorporated this industry-leading concept in the development of its latest facility soon to open in Bryanston, Johannesburg.