Month: April 2018
People in British Columbia who are sixty years old or older have a few different financing options when it come to receiving a mortgage, such as obtaining a Reverse Mortgage in BC. This type of mortgage is just for seniors who are sixty years old or older who either own a condo or a home. This type of mortgage is different from normal mortgages because it doesn’t involve a regular payment schedule. Instead, it allows people to make monthly payments on the interest and it also allows seniors to simply pay the mortgage back when the home is sold. There are many benefits to a reverse mortgage and this article will focus on three of them.
There is only one lender in Canada that offers Reverse Mortgage in BC, which is CIP Home Income Plan. CHIP has been providing reverse mortgages for over twenty years, which means that they know what they are doing and are very trustworthy. That being said, people shouldn’t worry about doing business with this lender because they are very trustworthy and have been providing these mortgages for people for a very long time. It’s important to trust lenders and CHIP is definitely a lender that can be trusted.
A second benefit to a Reverse Mortgage in BC is that this type of mortgage allows people to still own and control the home at all times. People who obtain this type of mortgage do not give ownership of the home to CHIP. Instead, the ownership of the home will stay with the owners which means that the owners and only the owners own and control the home. It is the exact same thing as traditional mortgages, so ownership of the home is nothing to worry about.
Arguably one of the most important benefits of a Reverse Mortgage in BC is that there is no risk of losing the home. Traditional mortgages do not offer this type of security as people can lose their home if payments are not being made. There is no chance of a default and the loan is guaranteed at all times with CHIP, which is a very important thing for anyone sixty years old or older to remember when considering if a reverse mortgage is a good idea. Hopefully this article has been beneficial to those in British Columbia who are sixty years old or older and are wondering about their home financing options.
It is important for you to investigate the city neighborhoods when you have made up your mind to invest in a property. Ask yourself this question: ‘Will investing in a swanky neighborhood be cost-effective as a form of investment?’ Generally homes in an expensive part of town will cost too much and are not worth your money. While you may be able to find rare gems and bargains once in a while, it is safer to purchase a home in a less classy Ottawa neighborhood.
At the same time, you should not focus on real estate in a low class neighborhood either. Some homeowners don’t take proper care of their property in these areas. Not only are the properties more difficult to rent, it may also be challenging to sell them in the future.
Be cautious of communities where there are too many homes for sale. There could be an underlying reason for this situation. Perhaps everyone is leaving the town for greener pastures elsewhere since they do not feel safe living there any longer. You do not want to come in and take over such a property.
Visit the local police to ask for crime statistics of the neighborhood to determine if it is a safe place to reside. If you take a look at the multiple listing service or MLS, you can also assess recent property sales in the area. Make an appointment with a real estate evaluator to check for the price averages in recent years and ask if that neighborhood is a good place to invest in property.
Network with fellow real estate investors and get a feel for the value of certain neighborhoods. Ask for recent trends of a given Ottawa area and find out its future potential value.
Overall, you need to look for gems in Ottawa neighborhoods that are not too luxurious but at the same time are not low-value areas. If an area appeals to you, evaluate its market value as a community and start looking for a property. Remember, the better the area, the better your chances are for landing a great investment deal.
A house is a very basic need of a human and it is a foundation for the family members to pursue their goals. The love, peace, happiness, emotions, worries and struggles are shared with each other inside a home. It is the ideal place for all people that provide support and peace at the older age. Wherever you go, all round the world, your home is the place that provides peace, happiness and warmth. Building a new house is a dream for everyone. They work towards the goal to provide a comfortable living space for their family and children.
Lots of ideas will be lingering in the mind while planning to build a house. But building a home is not an easy task. Each stage of construction like planning, designing, contracting, approval and construction must be done accurately which requires lots of experience. Only an experienced builder can make your dream home come true within your budget. Certain factors like years of experience, knowledge of the technicians, quality of products, flexibility in pricing and customization has to be noted before hiring a home building company. Some builders may not be flexible. They follow strict policies in payment options. Do not accept any changes or modifications in the proposed plan. Hence, it is very important to hire renowned experts who can offer distinctive design and tailor makes the plans as per the clients’ requirements. The home building company NZ is one such remarkable experts in the construction field. They have numerous built-in models that are exceptional and exclusive when compared with many other usual models. Their extensive collections of home styles and designs are sure to astonish the clients to select one from it. Each and every part of the house are well panned and designed in such a way that it looks modern, elegant and stylish that meets the requirements of the home owners. The New Zealanders are gifted with such remarkable professionals who also customize their designs as per the need of the customers.
The building is constructed with high quality materials that are sturdy, natural, renewable and bio degradable. The solid timber planks are patented with aluminum profiles that are interlocked with each other rather than nailed. This type of building structure assures durability and can withstand any harsh weather like cyclone or earthquake. As solid wood have high insulation and thermal mass, it is highly energy efficient. Being natural and eco friendly, it is easy to maintain and provides a healthy living atmosphere. The color, pattern, interior choices are sure to attract everyone. Such remarkable home building companies NZ also custom make the designs, floor plans and interiors according to the choices of the home owners.
The designers make use of computer technology to sketch your home with exact needs where the plans are accurate and perfect. The highly skilled and experienced team members can make the exact replica of your dream home. Each and every stage of building process is accomplished with perfection and handed over at the stipulated time. Hiring such professional building company enable to acquire your dream house without any hindrance. Provide a comfortable and peaceful living environment to your family by acquiring the right builder.
Before opting for any mortgage modification, it is necessary to consider mortgage modification pro’s and con’s. The biggest advantage of mortgage modification is that it is possible to reduce equated monthly installments (EMI) with it. Because of this reduction of EMI, outflows from the borrower’s monthly income can be brought down. As a result, the borrower may find it easier to manage his finances.
A mortgage is deemed as modified when lenders and borrowers mutually change the terms and conditions of the original mortgage. It is primarily the lender who has to agree to the revised terms and conditions under the mortgage modification.
Two major aspects may be changed in such mortgage modification. These are:
* The interest rates and
* The repayment period
If a borrower is desirous of reducing EMIs, then lenders have a choice to reduce interest rates or extend the mortgage repayment term. At times, the lender may lower interest rates and also extend the term for repaying the mortgage loan.
From the borrower’s perspective, the mortgage becomes more affordable and therefore he/she can avoid any financial problems that could have led to their credit report being affected. Moreover, if the repayment period is extended, the value of money that will be spent in the future towards mortgage loan EMI would be much lower. This is because equated monthly installments remain uniform throughout the mortgage term. But the value of this money (i.e. the purchasing power of this money) keeps on decreasing because of annual inflation. Because of this, the effective interest that is being paid to the lender is much lower.
For assessing the benefit, all present and future EMI s can be discounted at an estimated rate of inflation, and their net present value can be determined. The difference between the outstanding mortgage loan amount and this NPV of future cash outflows through EMI’s, is the amount of interest that will be paid to the lender. This is certainly much lower than the amount of interest without discounting EMIs. The borrower can also spread the tax deduction advantage over longer period if the present income is not allowing him to utilize the maximum limit. As years go by, the borrower is likely to find it easier to pay the EMIs, because his/her income will increase, but EMIs will stagnate.
From the lender’s perspective, it saves on costs of foreclosure proceedings. Even if the lender chooses to foreclose the mortgage, it is not guaranteed that the sale proceeds will be adequate to cover loaned amounts; therefore, the lender does not seem to have much choice but to accept a mortgage modification. In addition, foreclosure proceedings and bankruptcy proceedings take time. The lender may have to wait till the house is sold, and sale proceeds are received. In the period in between, the lender does not get any interest on the amount loaned. The lender factors in these losses and accepts the revised terms and conditions as may be proposed by the borrower. At times, the lender may even accept to absorb some losses. In such cases, lenders may choose to inform credit agencies of borrower’s inability to pay the loaned amounts-this can affect the borrower’s credit score.
In view of these mortgage modification pro’s and con’s, both parties to the contract will be willing to modify the terms and conditions of the mortgage. However, borrowers should not become complacent again, as the lenders most likely will not be willing to extend similar modifications in future. Lenders also try out the mortgage modification plan that the borrower has proposed during the trial period, to check whether the borrower is truly able to adhere to the revised terms of the mortgage repayment.
It is in the best interest of borrowers and lenders to work together to modify the terms of the mortgage.
Commercial buying is entirely different from purchasing residential properties. It requires huge investment therefore several risks are involved in the process that can cause great loss even you made a single mistake. There are number of factors that can influence your decision of buying commercial possession. You can also take the help of professionals who can provide you with expert advice and help you in making a sound investment. Above all, they are well educated thus take each and every step carefully by understanding the rules and regulations so as to avoid any trouble later in the future. Some of the most important factors that are responsible for making or breaking up your decisions are given below:
Firstly, make a check on the sources of income. This is one of the essential rules that before investing because it gives you an idea about your budget limitations. You can calculate the right amount by deducting the total expenses from your monthly income. It is recommendable never try to purchase a property off your budget because it is difficult to maintain later in the future. This way, you can wait till you manage to save a bit more before buying a new space.
Secondly, you credit score can really affect your decision badly. Individuals with bad credit scores have to face problems in getting their loan approved and do not get any rebate on current availing rates where as it is not true in the case of good credit scorers because they have the opportunity approve their mortgage in short interval of time and at discounted rates.
Thirdly, be clear with goals of the property. Everyone has different goals when it comes to real estate. Some of them buy to setup a new business where as some buy to expand their industry. No matter what the reason is, investors invest in order to gain maximum number of profits thus make a purchase in order to achieve goals in short interval of time.
Fourthly, location is prior concern in real estate industry. When you are talking about commercial real estate then it should be located in the centre of the city so that the company has maximum exposure to its customers as well as employees. Moreover, such locations have low transportation costs as well. Buying a pre constructed office spaces is an attractive options because you are availed with number of resources along with different equipments installed with software that help you saving a good amount of money.
At the end, it is advisable to hire home inspectors so that they can analyze the place properly in order to determine the real worth of a property. He gives proper time to the building to asses it carefully and addresses even minute details to his customers. Apart from this, you must see the access of parking in commercial buildings well in advance because it becomes a major issue later in the future. On availing these services of professional individuals you dont have to worry about any legal issues as well.
Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn.
For example, many buyers confuse the terms broker and salesperson. A broker is a properly licensed individual, or corporation, who serves as a special agent in the purchase and sale of real estate, a salesperson is an individual employed or associated by written agreement by the broker as an independent contractor. The salesperson facilitates the purchase or sale of real estate.
Once you decide to purchase, a salesperson will prepare a sales contract to present to the seller along with your earnest money deposit. The sales contract is the document through which the seller agrees to give possession and title of property to the buyer upon full payment of the purchase price and performance of agreed-upon conditions. The earnest money is a buyer’s partial payment, as a show of good faith, to make the contract binding. Often, the earnest money is held in an escrow account. Escrow is the process by which money is held by a disinterested party until the terms of the escrow instructions are fulfilled.
After the buyer and seller have signed the contract, the buyer must obtain a mortgage note by presenting the contract to a mortgage lender. The note is the buyer’s promise to pay the purchase price of the real estate in addition to a stated interest rate over a specified period of time. A mortgage lender places a lien on the property, or mortgage, and this secures the mortgage note.
The buyer pays interest money to the lender exchange for the use of money borrowed. Interest is usually referred to as APR or annual percentage rate. Interest is paid on the principle, the capital sum the buyer owes. Interest payments may be disguised in the form of points. Points are an up-front cost which may be paid by either the buyer or seller or both in conventional loans.
In general, there are two types of conventional loans that a buyer can obtain. A fixed rate loan has the same rate of interest for the life of the loan, usually 14 to 30 years. An adjustable rate loan or adjustable rate mortgage (ARM) provides a discounted initial rate, which changes after a set period of time. The rate can’t exceed the interest rate cap or ceiling allowed on such loans for any one adjustment period. Some ARMs have a lifetime cap on interest. The buyer makes the loan and interest payments to the lender through amortization, the systematic payment and retirement of debt over a set period of time.
Once the contract has been signed and a mortgage note obtained, the buyer and seller must legally close the real estate transaction. The closing is a meeting where the buyer, seller and their attorneys review, sign and exchange the final documents. At the closing, the buyer receives the appraisal report, an estimate of the property’s value with the appraiser’s signature, certification and sporting documents. The buyer also receives the title and the deed. The title shows evidence of the buyer’s ownership of the property while the deed legally transfers the title from the seller to the buyer. The final document the buyer receives at closing is a title insurance policy, insurance against the loss of the title if it’s found to be imperfect.
Buyers should plan on a least four to twelve weeks for a typical real estate transaction. The process is difficult and at times, intimidating. A general understanding of real estate terminology and chronology of the transaction, however, will help any real estate novice to confidently buy his or her first home.
When it comes to building a diversified property portfolio, many investors consider a reversionary property investment. Especially beneficial for the medium and long-term, a reversionary property is a good option as it offers a host of advantages. The fact that its unheard of for property prices to decline 50% below their current value makes investing in a reversionary property worth considering.
What is a reversionary property investment?
A reversionary property offers potentially high returns. Reversionary property investing refers to the process where an investor purchases the reversionary interest in another persons property, typically their home. This means they are purchasing the rights to own the property upon the death of the owner or when he vacates. In short, the property reverts to the buyer.
Types of reversionary properties
There are two types of reversionary properties: tenanted and untenanted. Tenanted is when the homeowner stays in the premises while untenanted is when the seller isnt residing in the house. In the second type, the buyer can choose to rent out the property.
How do you obtain a reversionary property?
In a reversionary property investment, you simply buy a residential property from a homeowner at a significantly discounted price usually around 50% of its value, depending on the sellers age and the propertys location and features. Payment can either be made through cash lump sum or in monthly instalments or a combination of both. When payment has been handed over, the homeowner continues to reside in the property as a rent-free tenant with full legal rights to stay in the house.
As long as he continues to stay in the house, he will be responsible for the general maintenance of the property, the utility bills, building insurance premiums and capital tax. Basically, reversion investments are a bet on the life expectancy of the homeowner. Meanwhile, the buyer of the property pays the monthly reversionary annuities until the death of the homeowner. When the homeowner dies or when he decides to leave, the propertys ownership reverts to the buyer.
Who benefits from a reversionary property investment?
Both the homeowner and the buyer benefit from a reversionary property. The homeowner-seller receives additional income in the form of a cash lump sum or monthly payments which could significantly supplement his pension. The setup will also provide him a lease that will endure until he passes away and he is freed from the responsibility of shelling out big payments such as land tax. In addition, he doesnt have to put up with the usual anxiety associated with selling his own property or moving out, allowing him a stable and secure state of mind.
For the buyer, the reversionary property presents an excellent opportunity for him to acquire a property at a huge discount. Most of these reversionary properties are apartments, studio flats, villas and commercial buildings situated in prime spots thus making them well-suited for buy to lets.
A reversionary property investment is certainly one of the least bothersome ways for any property investor to invest.
With the current economic problems, housing prices have really taken a hit. Its not expected to change in the next few months, but most economists expect great changes in housing values in the next couple of years. If you are selling a home today, you probably are going to have a difficult time getting the amount you want. Banks have made it difficult for many people to obtain financing, but for those that do, its certainly a buyers market. If you are considering investing in real estate today, its a wise choice in most metropolitan areas.
Austin, Texas is definitely one of the most diverse metropolitan areas in the South. Youll find all types of property for sale here, including modern homes, multiplexes, luxury homes, and even some fantastic lakefront homes. For those looking for Austin multiplexes for sale, one of the best places to begin is by the University of Texas. There are dozens of multiplexes here, from duplexes to large apartment buildings. Many parents will purchase one of these properties so that their children can live in it while going to school. They will have a great investment property out of the transaction, as well. These properties never have a lack of renters and while the turnover can be high at the semesters end, there is always someone else ready to move in.
You will find that many of the Austin modern homes for sale are located in master planned communities. Many are gated, ensuring a higher level of security for the residents. Some of these communities are located right on Lake Austin and are some of the most sought after in Austin. Several of these communities are fairly new, ensuring that the architecture, amenities, and surroundings are very modern. Youll love the natural beauty of many of these communities, as well as the parks, biking and hiking trails, and swimming pools. Elegant and elaborate clubhouses become focal points for neighborhood gatherings. The best that Austin has to offer can be found here.
Youll need to get in touch with a great realtor. Not only will they be able to direct you to some of the best neighborhoods for what you are looking for, they can also show you available properties, negotiate with sellers, and finalize the sale. You can search through local newspapers, drive endlessly throughout the city, or spend hours on the internet looking at listings or you can meet with a realtor and have several possibilities within minutes.
When you are looking for some of the best Austin modern homes for sale, youll be quite pleased. There are many to choose from, but youll want to act quickly when you find one that you love. If not, its likely that the property you want will already be sold. People are buying up Austin multiplexes for sale quickly, as its never been a better time to make such an investment.
Property developers have always been looking for more innovative ways of funding their projects and more importantly maximising how much they can borrow – one such way is Mezzanine Finance. In short Mezzanine debt fills the gap between the property developers equity available and the amount of senior debt the lender is willing to lend and is generally secured by a second mortgage.
Traditionally mezzanine loans have been supplied by specialist lenders or private investors, an area which GCC has excelled in over the years. In recent times mezzanine finance has become more difficult to place with the requirements becoming more stringent, such as 100% pre-sale cover, collateral security etc. In response to this GCC has been working on an alternative.
Through our extensive network, GCC is in a position to source builders for appropriate well located developments who are and can not only build the project at a fixed price determined by an independent QS but are also able and willing to inject cash to cover any shortfall (as mezzanine facility/equity behind the senior lender).
Residential Development Finance Senior & Mezzanine Finance
Our client has contracted to buy a development site in Western Sydney for $1.5M plus costs. The property is zoned for 15 x 2 bedroom residential apartments and should sell for $6.5M. Given that it is a rising market the clients would prefer not to obtain presales as they firmly believe they will obtain better prices for the units close to or when completed. GCC was approached to arrange development finance via a private non-bank lender due to the fact that no presales would be available.
As we started working on the proposal we were informed by the borrowers that some of the investors had pulled out and they were short approximately $500k. Traditional mezzanine finance was not an option as there were no presales.
GCC approached one of our builders who we have been working with over the years and discussed the project. The builder did his research and agreed that the project was viable, well located and would sell well in the current market. He further agreed to build the project at the QS price on a fixed price contract basis and further agreed to contribute the shortfall of $500k as a mezzanine loan.
Loan Amount: $4,225,000
LVR: 65% of GRV
Mezzanine Debt (supplied by the builder)
Loan Amount: $500,000
LVR: 75% of GRV
Rate: 20% pa