Which is better: a fixed rate mortgage or adjustable rate mortgage? Studies in the USA have shown that, over time, people who where willing to accept an ARM did better than those who had a fixed rate mortgage. One of the best ways to determine whether a fixed mortgage or ARM is best for you, is to think about how long you plan to live in the house.
There are several decisions to make when flipping real estate - should you pay capital gains tax or should you apply for a 1031 exchange, borrow against the property and keep the land. Having to pay capital gains tax may be a factor in a property owner's decision to keep the land and apply for a 1031 exchange. Using a 1031 exchange, the owner would decide against flipping the property, and borrow against the land to finance other investments.
These home buyers bought a newly-built house from a builder and paid extra to construct large retaining walls around the backyard to keep it in shape. The city has now told them that the fence is too high and violates the law and will have to either be torn down moved several feet from the property line. Can the buyers sue the builder for not knowing the laws and still charging them extra?
When you buy property with a friend and later decide to part ways it's important to make sure each of you get a fair share of what you put into the property. If you sign a quit claim deed you give up all your ownership rights to the property. Be careful when signing a quit claim deed -- it does not relieve you of any financial responsibility for the property you bought with your friend.
What can you do when you have to pay a special assessment to your homeowners association (HOA) for water damage? Are the condo sellers liable for telling you about the water damage prior to sale? How can you find out if you're at risk for special assessments prior to buying a home with an HOA?
A home buyer bought property for sale by owner and wants to know how much to expect the seller to charge for interest, and for financing. Ilyce suggests hiring a real estate attorney to make sure the sale by owner proceeds smoothly and the home buyer gets charged a fair price. Ilyce also suggests going to bankrate.com to find out the average cost for a 30-year mortgage in their area, and to make sure the interest rate the seller charges for the sale by owner home is fair.
Home buyers must make sure the seller has vacated the home by the closing and before money exchanges hands. Otherwise, the home buyer may be inconvenienced by a seller who does not act in good faith and may try to stay in the home past closing. Home buyers make themselves financially vulnerable if they do not insist that the seller has moved out of the home before closing and paying for the home.
Why don't some states, including California use real estate attorneys to close housing deals, and expect real estate brokers to close the deal. Ilyce does not understand why residents in Georgia, Indiana, Ohio, California, and Arizona, to name a few no-attorney states, don't use real estate attorneys. Ilyce encourages every home buyer or seller, no matter what state, to protect themselves and hire a real estate attorney to assist them with their transaction.
If you're a first time home buyer or other home buyer you may be able to take a tax credit of $7,500 to $15,000 on your home purchase, if you live there for at least two years. Congressional leaders believe this tax credit for buying a home will help stimulate home sales and grow jobs. But what about real estate investors, who bought up many homes in the past several years? If the tax credits don't help them, will the country achieve an optimal level of home sales?
