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House Investment

House Investment

Building Your Own House – Investing in Solar Power

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Some of us are fortunate enough to consider building our own house. When deciding for a new house, we must consider a lot of different options and one of the facts we need to consider is also if the house will still be useful after few decades. To make sure we are going to be able to use our house for as long as possible with as little cost as possible, we need to make sure to build in as much green energy as possible. In this article, I would like to present you why I believe you should consider investing into solar power.

The fact is that the best time to invest in solar energy is when you build your house and not few years later when solar energy becomes more popular. If you want to use solar energy in the future, you need to think about that now. I’m not saying it will be impossible, but it will be much more expensive and frustrating to build in solar power when the house will already be built.

Other reason are savings – with solar power, you will be able to evidently cut back your electric bill. Why would you want to start saving money after few years and not now? One of obvious reasons is the investment itself – solar panels cost money. Yes they do, but who knows whether they will be cheaper in the future or not. They might get so popular that they will be more expensive. Not to mention the fact that electricity won’t get cheaper (it will probably be much more expensive, especially if we will use it as fuel for our cars).

When you have decided that solar panels are correct choice for you, make sure you build home that will make good use of produced electricity (good doors and windows, low energy kitchen appliances…). In few years, when solar panel investment will pay off, you will notice how much money you are saving.

 

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House Investment

We Buy Ugly Houses – Investment Firm Announces

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A real estate investment company in South Florida is easing the minds of those affected by the recent downturn in the local real estate market. People who were holding onto their real estate properties to financial ruin are being reassured that there is a way out. “We buy ugly houses,” is just one of the advertising lures used by credible investment firms.

So what exactly does the term “we buy ugly houses” convey? In many cases, real estate owners are afraid that they are stuck with their properties until the market value for their property increases. This is especially true if the property needs a great deal of work to make it attractive to mainstream buyers. You see, when foreclosure rates are high, the market is flooded with properties which only serves to drive the price on homes down. Seeing this, many people feel that it will be impossible to sell their home for what they owe on it if it is an ugly duckling.

Real estate investment companies like the one mentioned above are out to change homeowner’s misconceptions about selling a home in a down turned market. Their message is clear: Do not hold onto distressed and pre-foreclosure properties. We will buy your home or rental property and help you avoid financial ruin. Even if you are not facing foreclosure, getting rid of an unattractive property during a dip in the market can be difficult. Real estate investment firms can be a great way to get rid of any unwanted property.

 

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House Investment

Foreclosure Houses: Investments For A Better Life

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Making your life comfortable and securing the future of family are your ultimate goals. Investing in real estate properties is one of the best ways to fulfill these goals. Texas foreclosure houses provide an opportunity for profitable investments that can make your life better and comfortable.

Compared to other real estate properties, foreclosure homes are the preferred investment vehicles of millions of people because of so many reasons. Many people who invested in Texas foreclosure houses are assured of a secure future. Read on if you want to learn why foreclosed properties are the best real estate investments available.

Affordability:

Texas foreclosure houses are properties with owners who have defaulted on their mortgages, thus forcing lenders to repossess their houses. The lenders, whether banks or government housing agencies, will then proceed to sell the foreclosed homes in order to recover their investments. Because of the economic downturn, thousands of foreclosed houses are placed on the selling block. The abundant supply of foreclosed homes and the need for lenders to dispose of them immediately are some factors why these properties are sold below their market value. Affordability is synonymous to foreclosure homes.

Huge Profits:

Foreclosure homes are sold ‘as is’. So, when preparing your budget for this venture, you have to take into account the costs of repair or renovation. The good news is, there are just so many foreclosure properties on the market that finding a property which needs only minor repairs is never difficult. You just have to be always on the lookout for new foreclosures, and foreclosure listings can help you in this department. You can get a comprehensive and updated list of foreclosures if you subscribe to a listing service.

Once you have found the property that you want, get on with the work of making it attractive and livable. If you have the skills, you can do the fixing and repairing, and then sell the property for a huge profit or rent it out.

The best advice you can get when buying Texas foreclosure houses as investment is to set up a budget and stick to it.

 

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House Investment

Using the Web to Encourage Affordable Housing Investment

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In the early 1990s, a group known as the National Commission on Severely Distressed Public Housing was formed to develop a National Action Plan to repair public housing that was in desperate need of rehabilitation. From 1993 on, the program awarded millions of dollars in grants to aid in the revitalization and in some instances demolition and rebuilding of public housing. In 2010, in an effort to build upon and expand the success of what became known as the HOPE VI program, the U.S. Department of Housing and Urban Development (HUD) launched a new initiative called Choice Neighborhoods.

HUD’s Choice Neighborhoods program was created to expanding funding beyond public housing. It’s purpose is to encourage not just revitalization of public housing units, but of entire neighborhoods, through improvements in everything from infrastructure to retail space and schools. Each year, millions of dollars are awarded through Choice Neighborhoods. And while funding can help get much-needed revitalization projects off the ground, many projects need more money than what’s available. Rather than let projects just sit idle and unfinished, HUD has launched a new web-based tool in an effort to increase private investment in these projects.

The new tool allows potential investors to search, via an interactive map, for regional projects that submitted funding requests via Choice Neighborhoods. Grant recipients are listed, as are applicants which HUD considered “strong,” but for which funding was not available.

The website, Partner.Hud.Gov, includes detailed information about Choice Neighborhoods applicants, including contact information, the neighborhood or area targeted for development, and the amount of grant money received, if any. When a user clicks on the name of a grant recipient, he is redirected to a separate web page that generally includes a detailed map of the neighborhood or area for which the application was submitted, and a thorough description of the project, including key partners.

This year, HUD received over 150 applications, but was only able to grant funding to 22 projects. And even some of the projects that received grants need additional investment dollars because they didn’t receive their full funding request from HUD. HUD hopes that making applicant information available on an easy-to-use web platform will draw private investors who will help see these important projects through to completion.

No decision has been made regarding the web tool’s long-term status. A final determination will likely not be made until the site has been up and running long enough for HUD and Choice Neighborhood applicants to gauge whether or not it’s effective.

 

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House Investment

Flipping Houses – A Great Idea Or a Whole Lot of Pain?

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Many of you have probably watched those television shows about making loads of money by buying a dilapidated house and fixing it up. When you buy a house, fix it up and then sell it quickly, making a tidy profit in a very short time, it is referred to as “flipping.” So does it work? Can you make it work or is it a world of pain waiting to happen?

If you are entering into the world of real estate investing and want to take this route, then there are a few pros and cons that you should carefully consider before you start. Just like any other business there are a few things you have to be careful about.

First the Pros

• Potential profits are large and can be obtained quite quickly if the housing market is a seller’s market. You can make in a few months what you usually make in an entire year. The flippers income can be very large if you set up a successful team.

• You are your own boss. Obviously you need to keep within the law and there are some strict zoning ordinances and code requirements that you have to adhere to and there are building regulations to follow. These aside, you do get to have a great deal of control over all the decisions that need to be made.

• You are what you produce. It is a very hands on business. There is a lot of manual work, unless you want to outsource everything of course (see bullet point above). It is your heart, blood, sweat, tears and soul that make the property what it is. When you sell you get the value of all these things that you have invested into it. Nothing gives back like a successful house flip.

Now the Cons

• Risk. Flipping a house can be a risky business if you do not have a good plan to follow. This can be applied to any business. There is a skill to successfully developing real estate and turning it into something better. There is a wide variety of things that can go wrong during the process and the volatility of the housing market is the biggest one. You must be prepared to walk away from the venture with less than you expected and even zero in some cases. You just need the resilience to move on to the next one. This is just the same as if you invested in stocks, but pulling out of a house investment is much more difficult. A half developed house is worth little so you need the resilience to see things through to the finish once you begin.

• Expenses. It is expensive to flip a house. There are legal fees, realtor fees and remodeling fees. You are going to have to pay your mortgage while you are trying to sell. Your contractors will want to be paid before you sell the house. It takes careful planning and due diligence as well as financial planning and resources to afford this investment. But the rewards are usually well worth the effort.

Despite all these pros and cons, people all around the world embark on their first adventure, almost every day. The lure of large rewards often outweighs the need for caution and prudence. For many, their efforts will overcome the risks and the expense.

Are you ready to take the plunge? Have you decided to get your power tools out of the garage? If you want to start on the adventure that is house flipping, I wish you the best of luck.

 

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House Investment

Advantages of House Investment Over Land Investment

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Investing in property is one of the major areas of investment today, with more and more people involved in buying as well as selling the same. Property investment can be broadly divided into two categories, namely house investment and land investment. Both types of investment have similar risks but different advantages and disadvantages. While there is no wrong type of investment with respect to property, it is always advisable to understand the pros and cons of these two main categories before actually putting your money into any of these.

It is pertinent to note that in both types of investment, namely house and land investment, liquidity can be a problem, at least initially. However, in the long run, it is obvious that both types of investment yield profits. While experts believe that land is a low risk investment as compared to all others, house investment has more advantages when compared to land investment. Firstly, the amount of money that you need to put down to get a mortgage loan for house investment is far less than land investment. In other words, down payment is more when it is land than when it is house, making it easy for people to invest in homes.

Secondly, selling your house property is easier than land investment. This is because you have more people looking for house properties as compared to those who are interested in buying land. So, if you are in the real estate business, making money through flipping is easy and requires lesser investment when it is a house property than in the case of land. With regard to land investment, flipping for a good profit is often difficult unless you have built something on it or improved it. This means that the investor has to not only invest in the land but also invest into creating something, which can then be sold for a profit.

Another major advantage of house investment is that you can let it out to tenants for a monthly rent unlike land investment. Houses or rental properties are a great way for people in the real estate business to make steady income with absolutely low risk. Of course, it is imperative to include cost of repairs, taxes as well as mortgage payments before you calculate profits from the rental properties. While the profit yielding process might be slow and small in the beginning, the biggest advantage is that it brings a steady cash flow, which will gradually increase after you repay your entire mortgage payment. Moreover, it is immediate cash flow, which is not the case with a land investment, where you have to build before you can rent out or make profit from rents.

While it is true that in rental properties or houses, you might have to make some minor repairs or renovate before you let it out, in normal practices, this is not as extensive as constructing a new building or home on a piece of land. Therefore, the time required for such repairs or renovation is minimal, often ensuring that you start earning profits or returns from your investment, almost immediately.

 

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