Is Real Estate the New 401(k) for Retirees?

Writen by Russ Whitney

Hitting the traditional retirement age of 65 does not necessarily mean you are ready to retireat least, not financially. Social Security benefits alone are simply not enough for most people to live on, corporate pensions are rapidly disappearing, and even people who have done some retirement planning are finding it necessary to continue working well into their late 60s and even 70s. Two thirds of baby boomers polled in a recent survey said the cost of living is too high today to truly retire and never work again. And it seems they are right: According to the U. S. Department of Labor, nearly 1 million people age 75 and older are working at least part time.

Savvy boomers are growing their nest eggs before and after retirement by investing in real estate. In fact, by providing people with a relatively safe way to invest and generate cash flow well into their golden years, real estate functioned essentially as a retirement plan before such plans became part of the U.S. tax code. Of course, actual plans such as 401(k)s allow you to defer taxes, but real estate investing also provides you with a number of tax saving strategies. My point is this: If you want a comfortable retirement, real estate can help you get it.

Let’s return for a moment to the 401(k) model. If you happen to work for a company that offers this type of retirement savings plan (and not everyone does), you’ll make your contributions (which may or may not be matched by your employer) and have some limited options as to how the money will be invested. In general, you canbut don’t have tostart withdrawing funds at age 59

Fort Lauderdale Residential Real Estate

Writen by Kevin Stith

Nothing can be more brilliantly beautiful and convenient then having your own space in Fort Lauderdale. Fort Lauderdale, located in the Florida’s urban area, is also known as the “Venice of America.” It has a wonderful beachside location, clubs, bars and a lively party ambience. Having your own home in a place like this is wonderful.

The city center and entertainment area has seen remarkable growth, with add ons of new hotels, high rise condominiums, boutiques, galleries, and fine restaurants. The city also offers a variety of housing options, which include commercial, roof space style, villas, suites, town homes, and single family homes. Apart from these, many homes are located on the waterfront with scenic views of the ocean.

Homes can be found in all price ranges. Fort Lauderdale has all one can long for in the city. Fort Lauderdale is also a center of fine dining, fashion and entertainment. The city also has colleges and universities to cover your educational needs. It also offers entertainment and recreation for you and your family. The city not only offers you an exceptionally rich quality of life, but its rich culture and history makes it a perfect place to own a property. The climate is also favorable, with cool ocean breezes all year round that makes it ‘The Best’. So next time you want to invest in for a property, you know Fort Lauderdale is the best place to do as it gives you the best of nature, leisure and culture all in all best of all worlds.

Fort Lauderdale provides detailed information on Fort Lauderdale, Fort Lauderdale Residential Real Estate, Fort Lauderdale Airport, Fort Lauderdale Bail Bonds and more. Fort Lauderdale is affiliated with Swim with Dolphins in Hawaii .

Mortgage Loan Lingo

Writen by Helena Hill

Understanding real estate and mortgage terminology is of utmost importance when buying a home. The vocabulary will become second nature the more you are involved in real estate transactions. For the pros and loan officers, it’s daily language.

This is a quick reference of mortgage dictionary words. Sit down and read each description and become familiar with the words. Then, in a few weeks, you can “talk the talk” and be familiar with the meaning of each word.

Escrow Account: A financial account, separate from an operating account, maintained by a title company for the benefit of the parties to a real estate transaction.

Federal National Mortgage Association (FNMA): Also know as “Fannie Mae,” a tax paying corporation created by Congress that purchases and sells conventional residential mortgages, as well as those insured by FHA or guaranteed by VA. This institution, which provides funds for one in seven mortgages, makes money more available and more affordable.

Fixed Rate Mortgage: Interest rate is constant for the entire term of the loan.

Floating Rate: An interest rate that is not guaranteed. One that can change as the “market” changes. You can choose to float your rate, instead of lock your rate.

Foreclosure: A legal procedure in which property securing the debt is sold by the lender to pay the defaulting borrower’s debt.

Housing Expenses To Income Ratio: The ratio, expressed as a percentage, which results when a borrower’s housing expenses are divided by his/her net effective income (FHA/VA loans) or gross monthly income (conventional loans).

Index: the interest rate to which changes in an adjustable rate mortgage are pegged.

Impound: The portion of a borrower’s monthly payments held by the lender to pay taxes, hazard insurance and mortgage insurance.

Interest Rate: The percentage a borrower pays to borrow money. On adjustable rate loans, index plus margin equals adjusted interest rate.

Lien: A monetary claim against a property, which usually needs to be settled before the buyer can take title.

Loan Application Fee: A lender’s fee, usually ranging from $75 to $300, which the buyer must pay when applying for a mortgage.

Lock In: A lender’s promise to guarantee an interest rate or points for a set period during the qualifying process.

Margin: The amount added to an index to determine future interest rates on adjustable rate mortgages.

Market Rate: The average rate charged by lenders for conventional, fixed rate loans.

Mortgage: A legal document that pledges a property to the lender as security for payment of debt.

Mortgage Insurance: Money paid to insure the mortgage when the down payment is less than 20 percent.

Negative amortization: An increase in the outstanding balance of a loan created when the payment isn’t large enough to cover the interest charged.

Note: A legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The mortgage note is secured by a mortgage.

Owner’s Title Insurance Policy: Insurance to protect the buyer against loss arising from dispute over ownership of property. The owner’s guarantee that the property is free and clear of any unknown defects. You will receive a copy of this policy before closing, and again at closing.

Pre Qualification: A determination of how much money a prospective home buyer will be eligible to borrow before a loan application is made. Many real estate professionals will ask buyers for a pre qualification or pre approval letter to accompany an offer.

Understanding these terms will give you an advantage when applying for a loan. Just study them and you’ll understand the lingo.

Helena Biasatti Hill is a Dallas real estate broker and a contributor to the Flower Mound Home Showcase.

Don’t Get Stuck Having To Deal With The Seller’s Household Hazardous Wastes After You Move In!

Writen by Don Berthiaume

I have a confession to make!

I was just outside with Frankie (my dog) and noticed I still had an old car battery sitting by the foundation, at the rear of my house.

Yes, I’ll admit it’s not right, and quite environmentally insensitive for me to have it there. However, even though I know I should have disposed of it by now, that fact is, it’s still there. Seeing it there prompted me to think about, if I was selling my home, how easy something like that would be to ‘forget’ about and leave behind for the buyers to deal with.

It also prompted me to recall the 3 4 spent automobile tires, and rims, that I found in a basement closet after we had moved in!

It reminded me of all the paint cans, stain cans and a host of other household hazardous waste that was left behind for me to deal with and dispose of properly.

All innocent looking, sitting there on a shelf or in a corner of the basement, in a closet, under a sink, in the attic, or in the garage stored neatly between the wall studs. There are lots of places such household hazardous wastes (HHW) can be found.

I don’t believe they were left here intentionally or with malice. Rather, I imagine they were left here as a gesture of goodwill that perhaps it’s something I would be able to use. Problem is, the sellers likely hadn’t used any of the stuff during the waning years they were here. What made them think I would use the stuff?

Luckily, the municipality I live in has a “Household Hazardous Waste Collection Program” that homeowners can take advantage of without having to pay. I urge you to check out the link above and see exactly what qualifies or is considered to be HHW I guarantee it will be an eye opener for you.

Although I was able to dispose of the typical HHW without being charged, I did have to take time out on the designated Saturday to do something that the sellers should have done before they left.

I also didn’t get out of it without having to pay anything. I was required to pay for the disposal of the tires the seller had so graciously left behind since those needed to go directly to the landfill.

Which brings me to the point of this post…

Not many homebuyers even think about this when they’re looking at a home.

This is one of the reasons why, as a prospective and eventually serious buyer you should not be simply herded through the home you’re looking to purchase like lost sheep.

You should insist on spending as much time as you can, investigating as many nooks and crannies as you can. Take notice of what you see and really process it. Seeing tires in the basement isn’t an uncommon occurrence. But assuming they won’t be there after you buy the home is.

Don’t assume anything!

Be specific in your questions and concerns no matter how trivial you think they may be.

I strongly urge you to visit: http://www.homebuyerdefenseguide.com/home buying strategies/hazwaste.html

and see what HHW consists of, become familiar with the many items included as HHW and what you will need to do to dispose of any that is left behind.

Maybe I’ll bring that battery to the landfill right now…

Become a real estate insider and don’t be at the mercy of unreliable real estate agents or untruthful sellers.

Discover just how easy it is to get all the information you need on the home you want to buy.

ABOUT THE AUTHOR

Don Berthiaume gives you the questions you need to ask when buying a home. For more details, and for a free 4 part mini course in home buying, visit this site now: Home Buying Guide

Sell House at the Right Time

Writen by B Shelton

According to realtors, there are several times of year when you’ll get a better price on a house than at others, and some times that you’ll sell a house faster than others. Here’s the way that things stack up on the best time to sell a house:

Most realtors will tell you that home sales tend to hit their peak between April and August as parents take advantage of summer vacation to move their kids while they’re out of school. This is mixed news for buyers, who are facing more competition for the available houses, but excellent news for you if that’s when you choose to sell your house. Because there are more buyers looking, you can usually get a better price for your house. It’s the old law of supply and demand.

The later in the season it gets, the easier it is to get a higher price when you sell your house. As school days near again, buyers are motivated to get the sale over with and have everyone settled before school starts again. On the other hand, according to many real estate experts, spring and summer brings out a lot of less serious buyers people who are ‘just looking’, so you may need to weed prospective buyers out a little more selectively.

Autumn has fewer buyers, but they’re likely to be more ‘motivated’, according to realtors. If you sell your house between Halloween and New Years’, chances are that you’ll get your house sold faster and closer to your asking price. Generally, according to realtors, autumn buyers have either waited through the busy season in hopes of a better deal, or they’re facing their own time constraints a house that’s sold without a house to move into, perhaps. Another reason that people are eager to buy toward the end of the year is the desire to take advantage of IRS regulations. People who sold their own homes in the spring are now trying to close a deal on a sale in time to take advantage of a tax break. Under IRS guidelines, a home seller has 180 days to close on another sale if they want to defer taxes on the profit from their sale.

Besides seasonal considerations the time of year and holidays there are many other things that can affect home sale prices. When interest rates fall, for instance, house sales go up. When interest rates are lower, people are willing to finance larger amounts and are more likely to meet your asking price. Obviously, if the local economy is depressed, you won’t be able to sell your home as easily.

If you keep your ear to the ground, you may be able to take advantage of local business trends. If a large company is closing, for instance, it can be good news for buyers as people caught in the whirlwind try to sell their homes, or prepare to relocate. On the reverse side, the few months on either side of a local business opening can bring buyers in from other areas of the country that are looking to buy the home you’re trying to sell.

At its simplest, the breakdown looks like this:

In spring and summer, your house will fetch a higher price because parents are trying to move before school starts again.

Between November and January, your house will probably sell more quickly, and close to your asking price as people try to buy before the end of the year and take advantage of tax breaks.

Falling interest rates bring out serious buyers, making it easier for your home to sell.

Anything that improves the local economy will help your home sell.

Anything that depresses the local economy makes it a good time to buy bad time to try to sell your home.

Brian Shelton makes it easy to sell your house fast. To claim your free report entitled “How To Sell Your House In 7 Days or Less“, visit http://www.HouseSoldIn7Days.com.

Seven Questions You Should Ask When Buying a Condo Hotel Unit

Writen by Joel Greene

You may have heard all the buzz about the newest type of vacation home investment, condo hotels. These are condominiums located in four and five star hotels in cities like Miami, Orlando, Las Vegas and Chicago. Owners use their condos when they’d like. When not using their unit, they can place it in the hotel’s rental program and receive a percentage of the revenue it generates.

How do you choose a condo hotel unit that meets your desire for a vacation home and is also likely to produce a healthy revenue and appreciate down the road? Consider the following seven questions when evaluating a condo hotels:

1. Is a condo hotel right for you?

Condo hotels are not your typical second homes. They are fabulously furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high rise, luxury hotels and come with premium amenities like valet, concierge and maid service. Prices can range from $250,000 to over $1 million for prime properties.

2. Is the condo hotel well located?

Consider whether the property is located in a popular vacation destination, one that is likely to do a healthy tourist or business trade regardless of economic factors.

Also, you must be sure you yourself like the location. Does it offer you the ocean view or golf course access you always dreamed about for your vacation home? If you’ll be flying to this vacation home, how close is it to a major airport?

3. Does the condo hotel have a major franchise?

The key to a successful condo hotel investment is the hotel operator. The better the operator and the franchise, the more likely the success of the property.

A condo hotel with a name brand like Ritz Carlton, Hilton, Starwood or Trump is likely to generate more revenue than a non brand because it can charge higher room rates and benefit from international advertising and a centralized reservation system.

4. Will the condo hotel receive traffic from any nearby attractions or entertainment venues?

A condo hotel that is near a convention center, a theme park or cruise port will benefit from proximity to these high traffic venues.

5. Does the condo hotel have any on site amenities that will draw guests such as a well known health club, spa, fine dining restaurant or golf course?

You’ll want to choose a condo hotel that has amenities you’ll enjoy using and also are a draw to attract hotel guests.

6. Does the individual unit that you’re considering in a condo hotel meet your needs?

Does it have enough bedrooms, enough square footage? Does it have a kitchen? (Some do, some don’t.) Does it offer an appealing view? Is it furnished to meet your tastes? Does it offer any owner storage?

7. Will the condo hotel unit appreciate?

While personal enjoyment should be your primary reason for considering a condo hotel purchase, it’s certainly worth thinking about whether the property you want has good appreciation potential.

Look at surrounding properties and area appreciation rates. Does the condo hotel have lots of competition? Is it different or better than area properties? How has the demand been since the property first came on the market?

A realtor who specializes in condo hotels and is familiar with the area in which you’re looking can often help you determine if the condo hotel you’re considering has good appreciation potential.

By Joel Greene
President, Condo Hotel Center, www.CondoHotelCenter.com

About the Author:
Joel Greene is the president of Condo Hotel Center in Miami, Florida. Visit his website at http://www.CondoHotelCenter.com which is a clearinghouse for listings, information, and photos of condo hotels. At his website you can sign up for his Property Alert newsletter which notifies readers of new condo hotel properties coming on the market and provides useful information about condo hotel developers and trends.

Modular Homes

Writen by Kristy Annely

Modular homes are houses built in factories and then transported to and assembled at the housing site. Modular homes are different from mobile homes and site built homes.

The term “site built” refers to the construction of new houses in the open, at the housing sites, at the mercy of both the climate and the builder. They have to generally adhere to state, local and regional codes and specifications. For example, earthquake prone areas may require special facilities. Such houses are also called “stick built” houses and often have rising value in the real estate market especially for site value.

Mobile homes are also completely factory and offsite manufactured, but are built on a non removable steel chassis. They adhere to a federal code, called the Housing and Urban Development (HUD) code, rather than to the local codes where they move about. They are cheaper than site built houses and modular houses, and decrease in value over time.

Modular homes, on the other hand, are built in sections in a factory. They are built to conform to all of the local, regional and state building codes for where they are finally located. Sections are transported from the manufacturing site to the building sites on truck beds and then are joined together by local contractors. The building is then laid out by a crane to an existing foundation.

Modular homes have several advantages that are making them increasingly popular. Modular homes tend to be twenty to forty percent cheaper than site built homes. This is because modular homes boast a variety of cost savings. The main reason for this is that large scale manufacturers can get favorable terms for supply of materials in bulk.

Also, indoor manufacturing of the house components means that they are safe from problems related to weather and climate. This is a major problem of site built houses, for which work is delayed often by weather or vandalism.

Waste from a modular home unit is miniscule compared to waste generated by site built homes. Also, factory workers are highly trained for specialized manufacturing tasks. In comparison, site building is entrusted to contractors who employ unskilled, temporary labor.

Modular homes are built in an offsite, quality controlled environment. The main advantage is that they can be built in half the time, while meeting the same quality standard.

Modular homes can be customer designed. The time saving is immense: modular homes take thirty to ninety days for completion, compared to six to nine months for site built houses. Typically, a two story, 2000 square foot home can be constructed in a factory in a single week!

Modular homes are growing more popular by the day. In 2002, three percent of new homes in the U.S. were modular homes, and the northeastern states accounted for the highest modular home activity. The states in which modular housing was most popular were North Carolina, Michigan, and New York.

Modular Homes provides detailed information about modular homes, modular home builders, modular home loans and more. Modular Homes is affiliated with Storage Sheds.

Location, Location, Location There is More to this Saying than Meets the Eye!

Writen by Edward Blinn

Over the years, you have probably heard the saying, “Location, Location, Location”.

It is true that location is a key element in selecting real estate. It is important to the resale value of a property to be in a desirable location. But there is a lot that goes into making “Location” that desirable entity that it has become.

Let’s take a look at a few factors that not only make up a desirable location but will help you to select a location that is right for you?

First off, I suggest having your Exclusive Buyers Broker compile reports for closed sales in any area you are currently considering. This will be very helpful in determining a trend in resale values and determining desirable locations. These reports help give you an idea of what you may expect several years up the road as far as the potential appreciation of the property you are considering. An area that shows a steady increase in sales prices for properties sold over the last 3 5 years would be a good area to delve into.

When looking for a home, it is preferable to locate a property not only in a nice residential area, but one that is also close to commercial and business districts as well. Having a nice balance of residential, commercial, and business not only provides potential jobs for the residents but income to the city as well which could be used for added services or maintenance and upgrades of the area roadways.

Deciding on which community you want to live in is your next step.

Let’s check out the curb appeal.

First and foremost, take a drive through a community that interests you. Look at the homes around you. Is there a sense of pride of ownership among the residents? Are the lawns neatly mowed and trimmed or are some unkempt? Is there a continuity of architecture among the homes? Are some properties in disrepair? What about the neighborhood streets? Are they well lit, nicely maintained? Potholes or poor drainage are signs that the community does not get the attention it needs. Any of these findings could adversely affect property values. What amenities does the community offer for you or your family? For example, having a community pool, golf course, clubhouse, or tennis courts would be nice if you enjoy participating in any of these on a social basis. However, these amenities come at a price and are usually paid for in an annual fee. Check to see if there is a homeowners association and if it is mandatory for all residents.

Okay, so far let’s say you like what you have seen. Let’s talk safety.

Where is the nearest fire station? What type of rating does it have? How far from the property is the closest fire hydrant? Knowing the location of and distance to both fire stations and hydrants is important as it will affect the rating you get and how much you pay for your homeowners insurance. Also, note locations of other fire stations. Are they located strategically enough to provide additional response if an emergency arose?

What is the crime rate? Check with the local sheriff’s office or police station and see what the statistics are for the community and city you are considering. This will also affect your potential resale values.

Schools are another important factor. The better the rating, the better property values will tend to be. If you have children, there are a number of things that will affect where you buy. Will your children be able to attend the school closest to the prospective home? If not, why. Are the schools in that area over crowded? Are there plans to build additional schools to support the growing population?

Many areas now allow school choice. However, you must sign up for the school of choice ahead of the coming school year. If you are relocating during the school term, check to see if there are waiting lists. It is possible that a student will move out of the area and a slot become available for your child. Check to see how the local students have scored on the standardized tests? You want your children to get the best education possible. You may obtain free testing results for schools in your area by looking on the internet. Simply search for “standardized test results city state” and replace the words city and state with the one you are concerned with.

Does the community have activities such as youth sponsored sports? Are there facilities such as a park or gym nearby that you or your family could benefit from? A community that has a nice blend parks and activities for young children, teenagers, adults and seniors is a community worth looking into.

So, next let’s take a look at the property taxes. Not every area is taxed the same. One county could pay much higher property taxes compared to another. This may affect the way you view a potential property and its desirability. After all, taxes generally tend to increase as time goes by. Know your budget and take the area property taxes into consideration. Remember, the property taxes reported on the house you are considering are based on the present value of the property. Unless the owner is selling at a great loss, you can be assured that the property taxes will increase after closing due to the properties increased value resulting from the sale.

Another factor to consider is the price per square foot. How are various properties in different communities comparing to one another in their price per square foot? I would not base my decision to purchase on this fact alone, but it is one you may wish to consider. Many times, properties that are located in areas of higher taxes actually have lower price per square foot ratios.

When you take all these items into consideration (closed sales in the area, pride of ownership, location of emergency personnel, community activities and resources, rating of area schools) you come to understand just how important location can be.

Taking the time to do a little research will can make the difference between simply buying a property or making a wise real estate investment.

Next we will look more closely at the property itself and discover how different features can affect property values. However, that will have to wait until my next article.

Best of luck in all your real estate endeavors.

©2006. Edward K. Blinn, P. A. is an Exclusive Buyers Broker at RE/MAX Sundance Realty in Bonita Springs, Florida who knows the value of SW Florida real estate, area communities, and their amenities. http://www.FloridaBuyersBroker.com

What To Expect From Your House Appraisal

Writen by Lee Dobbins

Having your house appraised can be a scary step in the moving process, especially if you don’t know what to expect. Will your house pass muster or will they find some hidden defects and problems lurking in the basement and attic? Should you scrub the house clean?

Don’t worry – this isn’t a test of how clean you keep your house or even if your house has problems (that will be for the home inspector to find out). The appraiser is there to determine a fair market value for your home. Whether you are selling the house or refinancing, this is a common part of the process and the inspector is quite used to traipsing about peoples homes in all kinds of disarray so you need not be embarrassed if your house is messy and it will not affect the value the appraiser puts on the property.

Determining the market value of your home is necessary so that your lender knows the home is valued at or above the amount of money you are borrowing. An appraisal is an estimate of worth. It is an opinion but is not entirely a subjective process. The FNMA, Federal National Mortgage Association sets up the guidelines and assigns values to certain assets of your home to ensure a fair sale.

The value of your home will be determined by comparing it to similar area properties that have sold in the past few months. The appraiser looks for properties that have the same number of bedrooms, baths, square footage and amenities like a fireplace or garage in your neighborhood or town. They start by looking at your neighborhood to find comparable sales or properties in similar neighborhoods that share similar characteristics of lifestyles, income level of residents, surroundings, average age and home values. A valid appraisal can be done when 3 or more properties similar to your own have been found.

Once the appraiser has these homes, there will be some adjustments made to take into consideration features that your home has the others don’t or features they have that you don’t. These features have nothing to do with your d

Real Estate Gain Knowledge on Real Estate Market

Writen by Gurpreet Sekhon

The real estate market is very difficult. Without proper knowledge, you cannot enter into it. A successful real estate business needs full knowledge. The term real estate is used for real property than that of personal.

The commonly used types of real estate are single family homes and commercial property. Single family homes means person own piece of land and the re sale value of such property is also higher. The properties like farms, industrial sites came under this category. Commercial property means the area used for businesses like offices, warehouses, hotels, shopping malls and retails. It also covers the unoccupied land to be used for such purposes.

It is very important to gain knowledge about certain rules and regulations before making your entry. You must know that what is your next step. There are real estate professionals that will provide you help in this process of buying and selling of land. A real estate agent works for a particular company and showing properties that came under company’s listings. There are no any restrictions on a real estate broker because he is independently licensed to evaluate the whole market. A real estate attorney will help in buying and selling commercial property business.

Before hiring an agent or broker, you also have some knowledge about buying and selling of property. If you are hiring an agent, must collect some information about his company and its previous record.

The author presents the website on real estate links. It covers meaning of real estate, commonly used types of real estate, important things considered before making real estate decision and different agents and brokers that helps in making such decisions. You can visit his site on real estate