All About Realestate

By Ed Lathrop

Probably the longest commitment we ever make in our lifetimes is the 30 years we commit to a mortgage. There isn”t too much we can count on having after 30 years, but unless we sell our houses or hit the lottery, we can be sure we will be paying off our mortgages for a long time!

Imagine how nice it would be to be mortgage free! It would, in many cases be like getting a $1,800 a month raise. It doesn”t seem possible anyone would have any kind of financial difficulty if he didn”t have a mortgage hanging around his neck. You could buy just about anything and go just about anywhere without needing to prepare your budget around that monthly mortgage payment.

In this article, we will explain how to pay off your mortgage in double, triple and even faster time! Oh, it won”t necessarily be easy, but it can be done. It has been said a person can do anything with motivation and a plan. So, here”s the plan.

Check your interest rate

If you are paying over the market rate on interest it may behoove you to refinance to the lowest rate you can get. Here”s why:

A $250,000 mortgage at 8% for 30 years comes with a monthly payment due of $1,834.41. Looking at an amortization schedule for this mortgage we find on the first payment, the principal being paid is $167.74.

A $250,000 mortgage at 6% for 30 years comes with a monthly payment of $1.498.88. Its amortization schedule shows the first payment”s principal portion is $248.88. Why is this important? Because you want to pay off as much principal as possible while paying as little interest as possible.

The early months are the most important ones

With the 8% mortgage, as we have noted the first monthly principal payment is $167.74. The principal portion of the payment increases slightly with each payment. So, for payment number 6, the principal paid is $173.41. If we add the principal payments for payments 2 through 6 together we get $855.64, and if we add this amount to our first payment, we will have paid the first 6 payments of our mortgage.

If we keep adding $850 to $1,000 to our payment every month for the next 6 months, we would have paid off the first 6 years already!

As you can see, the early months are important in getting a good start to paying off a mortgage early. This is because in these months, the interest, which is time value, is expensive. So, by not using that time we save a lot of money.

Double time and then some

Now let”s see what would happen if we doubled the payment every month. The payment due monthly is $1,843.41. If we paid $3,646.81 monthly, we would be paid in full in 7 years and 7 months. Now that”s quick!

Here”s why it”s important to get as low an interest rate as you can. If you had a 6% interest rate on the same amount for 30 years, the monthly payment would be $1,498.88. With this loan, if we paid a total of $3,646.81 monthly, we would be paid in full in exactly 7 years. So, we would save an extra 7 times $1,498.88 or $10,492.16.

Who”s got that kind of money?

Of course, coming up with an extra $2,000 a month is a bit much, but this is the kind of money it takes to pay off a mortgage in a lightning quick mode. So, to get a more realistic goal, here”s what to do.

Look at the mortgage”s amortization table and scan down to the halfway point. This would be payment number 180 on a 30-year mortgage. Take note of the principal portion of this payment. On the 6% mortgage we have been talking about, it is $607.73. If you pay this amount in addition to each of your monthly payments, you will have paid off the mortgage in full in exactly 15 years.

Again, sometimes coming up with additional payments is difficult, but this method gives you an idea of how making relatively small additional payments can help you pay off your mortgage way ahead of schedule.

About The Author

Ed Lathrop is a successful Real Estate investor. He has developed EzCalculator, which shows you how to save $100,000 on your mortgage. Come visit this free site at http://ezcalculator.com. Get your free amortization schedules at: http://freeamortizationschedule.net. These are Free Websites

By Alan Largo

There are a multitude of reasons that can cause someone to have their home end up in foreclosure. Maybe you lost your job and are having a difficult time finding another one. Imaginably there was an illness in the family or you recently fell on difficult times and just can”t seem to make ends meet.

Whatever the reason is that put you where you are today, certainly you want to do everything you humanly can to keep your home from falling into foreclosure. One major mistake that people make most often is ignoring their mortgage lender when they”re having financial problems.

Many people do not know that their mortgage lenders are becoming a lot more flexible with payment plans to let people keep their house. Foreclosure rates have jumped everywhere and lenders are finding out that they need to alter their general policies in order to keep their borrowers away from foreclosure proceedings so they won”t lose their home.

It”s very imperative to keep open lines of communication with your mortgage lender. This way, they can work with you employing various options to help you keep your home. There are also lots of options for you if you find yourself in a predicament in which your mortgage company will no longer work with you.

There are numerous companies out there that will purchase your home and quickly close on it. This is called a short sale. Depending on who you sell to, they”ll give you a certain amount of time to pack up your things and move out of the house. You can then walk away with cash available from the amount of equity that you had accrued in the home.

Bear in mind that these options offer just an immediate fix and isn”t really a viable solution to your problem. A quick sale will not supply you with the complete amount that your home is worth. Many of these companies will purchase the home from you, leaving you the opportunity to lease it so you won”t have to move out of the home.

They then provide you with a certain duration of time to financially recover, and so then you may purchase the house back from them at current market value whenever you”re ready. This can help you preserve your credit and your home at once.

Numerous options need to be discussed on stopping or delaying a potential foreclosure proceeding you may be up against. There are so many alternatives that can be used. Many outside companies will negotiate on your behalf with your mortgage company to help bring your payments up to date.

They can discuss viable options and payment plans with the mortgage lender in greater depth than you would be able to, and oftentimes they can negotiate a better price for you. They may also allow an extension to allow you pay back all delinquent payments you owe as opposed to you trying to do that by yourself.

If ever you”ve been served with foreclosure papers, that doesn”t mean that all hope is gone. You still have some time on your side to keep your home with many alternatives at your disposal. The most vital element is to keep in contact with your mortgage lender so they know what your intentions are.

This effort shows them that you”re serious and you know the rules of the game. By dismissing their phone calls and attempts to work with you, you”ll only make things harder for yourself which gives your mortgage lender the upper hand. Make sure to retain records of all your expenses. This way, you”ll be in great shape.

If you have medical problems, are unemployed, had some type of serious family emergency or other imaginable occurrence, you”ve got plenty of proof to show for it if these are the causes for your adverse financial position. It”s time to fight back and discover how you can turn the tide and save your home that you and your family are deserving of.

About The Author

Alan Largo is the creator and administrator of Stop Any Foreclosure and strives to assist others identify with their adverse mortgage situation through informative reviews. You”re invited to visit http://stopanyforeclosure.wordpress.com to read his most recent article review.

By Art Gib

There are a lot of similarities between resort towns across the U.S. Most of them are there for their fabulous snow and slopes, or have become attractive due to the notable celebrity of the moment making it fashionable to live there. However, whether the real estate landscape has any indicative mark on its quality, Breckenridge has held its own in the land buying market. Much of this is because her core audience does not intend to move anytime soon.

Breckenridge has a lot of permanent homes in the area, mostly because of it”s proximity to Denver. The Denver Sprawl is a good sign of big time population boom, and more and more retirees in the area come to Breckenridge to have as a second home. It”s thought by some real estate agents that baby boomers are looking for a place to, not only get away for fun, but were their families can meet for a weekend or holiday, while taking in the sights and sport.

Like most of the country, the wave of foreclosure loans hit the Denver area pretty hard leaving a lot of empty homes and desperate sellers. However Breckenridge homes sales have seen their local real estate market pretty even. It has not really followed the national trend and this may be due to a loyal core group who has hung on to their investment property.

One statistic that contradicts that Breckenridge is in a slumping market is that, although the whole of Summit County saw about a 14% decline in sales from 2007 to 2008, there was also a spike in average price of the homes by about 19%. This probably means that the few of those who are actually are selling are in not that big of a hurry to sell and realize there is high value in the property, especially due to the surrounding attractions and convenient access to the big city of Denver via the I-80.

Another statistic about second home buyers (who a majority of Breckenridge”s buyers are) is that when the National Association of Realtors did a national survey, they found that 38% planned to keep their home 11 years or more, with a median time of 10 years.

Vacation homes in total are actually bucking the trend. And another reason that the National Association of Realtors thought believed this to be true is that second home buyers from foreign countries are learning of popular vacation home spots like Breckenridge Colorado. Real Estate in Breckenridge seems to be in the crosshairs of a unique group of interested parties.

About The Author

Ski Country Homes (http://www.skicountryhomes.com) lists Breckenridge Colorado Real Estate for sale and provides information about luxury vacation homes such as mountain houses, log cabins, ski condos and many others. The author, Art Gib, is a freelance writer.

By Javaid Kiyani

A lot of people get into property investing thinking that its just about buying houses; you buy a house, develop it and then sell it on. Or you buy a property and then rent it out. And, in return for your efforts, youll make a load of cash!

Surely, if life was this simple, everyone would be investing in property. Right?

Before you throw in your job and embark on a lucrative career in property investing, you really need to sit down and try to understand what property investing is really all about. Property investing is a serious business. Treat it as a hobby and you will only ever achieve hobby profits. However, treat it as a business and youll get great results.

A successful property investor who buys and deals in property every day will:
-Understand what vital research is required before he offers on any property. This will include a lot of desk research including but not limited to ringing estate agents and letting agents to get the feel of any one street in any one area.
-Perform essential calculations to assess the viability of the purchase before even stepping out of the front door to view the property.
-Know exactly which locations to invest in, and which to avoid like the plague.
-Have a system in place to enable him to source and buy property below market value time and time again.
-Know all about clever negotiation strategies that will help him to save literally thousands off any property purchase.
-Understand creative strategies such as options, no money down and cash back deals.
-Know how to invest not just for asset building, but also for cash flow.
-Be able to structure each deal to suit the property sellers situation.
-Understand both buy-to-sell and buy-to-let strategies.
-Know what to do with the property once he has bought it.
-Have mastered the basics of property ownership and how to be a good landlord so that tenants never leave.
-Will know about property development and how to ensure that jobs get done on time and within budget.
-Know how to create a win-win situation every time.

So next time you think about investing in property, consider the above and start knowing exactly what will be expected of you to succeed. Dont start investing in property thinking it will be easy money with very little effort.

Property investing will require a lot of hard work and dedication especially from the outset. Educate yourself on the subject and develop a list of like minded friends and mentors whom you can consult when you get stuck.

If you go into property investing knowing the above, theres a good chance you will succeed. However, if you maintain a casual ”lets see what happens” approach you will throw in the towel much sooner than you initially expected, labelling property investing as a waste of time!

About The Author

Dr Javaid Kiyani is a successful Property Investor and Internet Marketer. His vast knowledge of property investment is evidenced by the books he has written. For a FREE course including regular advice and tips on property investment, please visit:

http://www.hmopropertyriches.com

By Joshua Ferris

With gas prices expected to shoot past four dollars a gallon this Summer, a housing market overwhelmed by foreclosures and rising unemployment rates throughout the country, now is the time to start thinking about how to save money and alternative ways to continue enjoying the lifestyle you are accustomed to.

1. Ask if you can telecommute to work 1-2 days a week. You know what they say about boiling a frog: “A frog can be boiled alive if the water is heated slowly enough — it is said that if a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will never jump out.” Use the same psychology on your boss by asking to work from home for a day or two and then gradually increasing your request until you are working from home entirely.

The best way to ensure that this will work is by being way more productive at home than you are at work (this will happen automatically for most people). It”ll not only save on gas but it”ll save you the headache of having to talk about American Idol around the water cooler with that lady from Accounting. If you ARE that lady from Accounting then start participating in online telecommuter communities like Web Worker Daily to help fill your social void.

Technologies to help along the way: eFax, GotVMail and GoToMeeting.

2. Start buying your music through online services like iTunes and Amazon MP3. For absolute audiophiles, buy cds and DVD-audio through online retailers like Amazon and Overstock instead of traveling to retail stores.

3. Don”t buy big ticket items until the fiscal quarter reports for retail giants have been released. Familiar big box stores like Best Buy and Circuit City have been going through tough times lately and the first thing they are going to push for after a disappointing fiscal quarter are incentives to lure buyers into their stores.

This could include 0% interest for 24 months and hundreds of dollars off of retail prices. You can also find stellar deals on open box items ranging from tvs to computers and videogame systems after major holiday events like Christmas.

4. Rent movies using PPV/VoD services or through popular living room based online services like Amazon Unbox (TiVo), iTunes (AppleTV), Netflix and Xbox Live (Xbox 360). Less sporadic movie fans can take advantage of mail order dvd services like Netflix and Blockbuster Online which offer unlimited, 3 at a time, movie services for less than $20/month.

5. Shop at outlet centers during the week to find the best deals on clothing, accessories and shoes. Designer brands are still red hot among consumers but that doesn”t mean you should have to push through crowds just to find them at great prices.

By shopping at outlet centers during the week you will run into 75% less traffic, have more selection to choose from (trucks typically deliver goods to stores during the week to restock after busy weekends) and you won”t have a problem finding a parking spot closer to the storefronts. Stores may also offer weekday only incentives so be sure to check coupon books and in-store flyers before making any purchases.

6. Today”s bogged down real estate market has practically handed over great deals on a silver platter. If you”re in the market for a new or resale home, check to see how far mass transit options are from the homes. Most suburban towns offer train, bus and highway access to the closest major city and new home builders prefer to build communities within a few minutes of these locations.

7. While considering that new home be sure to consider the size of the home as well. Not only will you save money by purchasing a smaller home but you are more likely to find a larger backyard, amenities comparable to larger homes and a much more palatable monthly heating bill.

8. If you are looking for space AND amenities then you may want to consider newer townhouses which tend to range in sizes comparable to single family homes and they come with community amenities that you wouldn”t ordinarily find in a single family home community. For example, The Grove at New Windsor offers a state of the art fitness center, tennis court, lounge and outdoor swimming pool. Sure beats spending $80/month just to drive to and from your local gym!

9. Are you already on a first name basis with every gas station clerk in town? You might want to replace your current gas guzzler with a more exciting, yet fuel efficient, car. The Mazda3 and Honda Civic both offer impressive gas mileage while including all the creature comforts typically found in bigger cars like premium sound and navigation systems, xenon headlights and iPod friendly aux inputs. The best part about these cars? You”ll be able to afford them even if your job situation changes unexpectedly.

If the 22/29 mpg EPA ratings of the Mazda3 still aren”t high enough then look into the smart fortwo passion coupe. You will trade speed, space and handling for better gas mileage (33 mpg/40 mpg to be exact) but at least you can point and laugh as you drive by the stiffs filling their fuel hungry monsters in the cold.

10. Purchase all of life”s needs that you don”t need right away through internet juggernauts like Amazon where you will be able to buy in bulk, combine shipping and often pay less than retail. Better yet, the government still hasn”t figured out how to tax internet purchases so you might even save on the sales tax.

Unlike previous economic recessions, especially during the Great Depression, we have the internet to serve as alternative source of content/product delivery and as a remote connection to work. By trading our larger vehicles and homes for more efficient alternatives that still meet our needs we can not only lower the cost of maintaining those items but we can also promote a healthier lifestyle that doesn”t involve suffocating debt loads and mind bending 2 hour commutes.

About The Author

Joshua Ferris is a new home specialist and has created a valuable resource for home buyers considering the area including his indispensable Monroe, NY real estate guide. For more information about real estate in the NYC suburbs please visit http://www.realestateinthenycsuburbs.com.

By Attila Jancsina

If it”s time to buy a new home and you already decided to sell your house, wait a bit before you turn to a real estate agency.

Maybe this is your first time home selling, and you think it would be better to entrust the whole stuff to a professional. But what makes you think you can”t do it on your own?

FSBO means ”For Sale By Owner” and it is used to describe home owners who sell their homes themselves and don”t use a real estate company when they sell their homes and land.

Believe it or not, with the proper knowledge and the right help just about anyone can successfully sell (or buy) without using a real estate agency. Sometimes an owner can even do a better job than many real estate agents.

FSBO makes selling a home on your own easy. A growing percentage of homeowners are realizing how easy and economical it is to sell your own home without using real estate agents and agencies. You can save a lot on real estate commissions every time you sell your house. It is very important that your home”s selling price is determined by you, not a real estate broker who takes a x% fee for selling your home.

It is recommended to get information about prices from as many sources as possible, for instance with the help of Real Estate Websites.

An agent may tell you that the main reason to use them rather than FSBO is that they can place your home in the Multiple Listing Service, and you can not. They may imply that your chances of selling without being in the MLS are next to nothing. Don”t believe it. The truth is that up to one in 3 homes sell by owner and very few, if any, of those were MLS listed.

Usually buyers look at For Sale By Owners as well as listed homes. They don”t only browse ads that are in the MLS, though realtors dreaming of that.

Advertising your home is the next step after you have determined the selling price. Advertising through a FBSO website is a convenient and effective way to market your home. Using a website increases your home”s exposure greater than traditional methods such as local newspapers and real estate magazines. That is not to say that you should forgo these traditional methods. Rather, you should employ all the methods at your disposal to improve the odds of selling your home.

Honestly, you don”t need a real estate agent to sell or purchase property – that”s clear. Keep your money for something else and give a trial to rely on your own skills.

About The Author

Attila Z Jancsina is a freelance copy writer. He occasionally writes for http://www.virginiaonsale.com

By Pam Rumley

Foreclosure! A term no one wants to become too familiar with. But, if problems have escalated beyond your control and you are no longer able to meet your mortgage obligations…there are ways to deal with the situation.

First and foremost – Don”t be in denial! Educate yourself and learn about your options before this forest fire burns out of control. How you choose to respond to the default will determine your financial status for years to come.

In my experience, a foreclosure is the worst possible detriment on your credit report…even worse than a bankruptcy. So, take steps right up front to preserve and protect your credit to the best of your ability.

Here are 5 ways to prevent the worst from happening:

1 – Contact your lender! Let them know about your situation and try to work out a plan for getting back on track. They don”t want a foreclosure any more than you do…and many times they will work with you to re-establish your mortgage. They might offer you interest only for a short period of time…or they might re-structure your mortgage by putting your past-due payments on the back end of your loan to help bring you current…or they might waive late fees. Who knows? And it certainly doesn”t hurt to try!

If you come to an agreement with your lender – be sure to get it in writing. You might also be wise to have an attorney review it before signing. And then be sure to live up to your end of the agreement.

If you see that keeping your home is not an option … carefully consider your alternatives to foreclosure.

2 – Re-finance the loan. This may not be the answer if you”re already to the default stage – but it”s worth looking into. You will need to have some equity in your home in order to do this, but in some instances it could lower your payments and save your home.

3 – Sell the home or consider a short sale. Consult with a real estate professional about the current market and what it will take to sell the house quickly. Remember, it”s much better to break even and walk away from the house than to have a foreclosure on your record.

If you find yourself upside down on the mortgage – consider a short sale. It”s best to discuss this with a real estate professional and allow that person to negotiate with your lender. In many situations – the lender will accept a short sale…again because it saves them from going through the foreclosure process.

4 – Deed-in-lieu-of Foreclosure. This means that you relinquish your rights to the home and simply sign the deed to the home over to the lender. Discuss this remedy with your lender because both of you will have to agree on it.

A deed in lieu of foreclosure is good for the lender because they don”t have to wait until foreclosure proceedings are finished to sell the house. It will save them considerable expenses and court costs as well. And it can be good for you – because you won”t have the foreclosure on your record.

5 – Chapter 13 Bankruptcy. This is usually a last resort…but can be preferable over a foreclosure. Bankruptcy will stop a foreclosure – and can prevent your being sued for a deficiency judgment. And, if you re-establish credit – it may not be as harsh on your credit as a foreclosure. Most attorneys offer a free consultation if you are considering bankruptcy…so why not take advantage of this offer. Your financial future is on the line!

About The Author

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer”s Agent, which means that her office never takes listings.

For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com

By Carey Frankel

First and foremost, you need to look up the appropriate real estate laws for your area. Watch out! Depending on which state you live in, may determine what kinds of properties, or the number of properties in which you can sell even if you are the sole owner. To find out about your state”s laws, do a Google search on “real estate” for sale owner, and the name of your state. i.e. “real estate” for sale owner florida. Other places you may be able to find accurate information would be at your local state real estate board regulatory or county land office.

You”ve done your research, now what? You have to determine if there are any specific regulations that may affect a sale such lead paint, the presence or absence of smoke detectors, asbestos, hand rails, stairs, appliances, lead pipes, and so on. In some areas electrical service must meet certain codes in order for the house to be sold. Other determinations may be whether the house has well, septic, or city water and sewer may affect the sale. Even something as simple as the grade of the yard may impede a sale. The key is to inform yourself so that there aren”t any surprises. You must also check zoning to see if there are any proposed or pending changes to the zoning of the property you intend to sell. To locate these laws, contact your county zoning board, the municipal housing center, or city or county building inspectors.

Now that you have done even more research, you know the regulation and the codes, you have to check with the county and city tax offices to make sure the property”s taxes are up to date and there are no unexpected special assessments. If the taxes are clear, it”s back to the county recorder”s office to ensure there are no existing liens that you were not expecting. Make sure that if you have any previously cleared liens, they were actually recorded properly and the county has cleared them. Sometimes these details fall by the wayside and prove to be a rude surprise at the closing table.

The codes are clear and you”ve made sure there are no liens. So how do you list your property? By this point, you”ve done a lot of legwork. If your home is located in any of the Northeast real estate areas, you may have found it easier to contact a licensed real estate agent. Unfortunately, there is still much more to consider when selling your home. If you haven”t considered consulting with a real estate agent, now may be the time. Working with an agent can save you a great deal of money and certainly a lot of stress. If you still want to list your home on your own, check out television shows such as “Designed to Sell”. They are geared to realtor sales, but can provide you with ideas on how to stage your house and sell your home.

Some great ways to advertise and sell your home is to use newspapers, Craigslist, web ads, flyers, or even for sale by owner (FSBO) ads on MLS service. In order to utilize FSBO contact the local MLS administrator. To find out who this is, contact a local real estate board.

If you are confused, you are certainly not alone. The process is a meticulous and tedious one. Working with professional agent may be your best bet to get you through this process. You can defiantly save a great deal of time, money, and stress. REALTORS have the tools and resources readily available in order to sell your home. Consider giving one a call, and go get a latte!

About The Author

The Phyllis Frankel Realty Group works with buyers, sellers and investors in the Jacksonville Florida real estate and Ponte Vedra Beach real estate areas. Search for your next home or property using our innovative mapping tool.
(800)999-0245 or visit http://www.frankelrealtygroup.com

By Shellaine Enfesta

Are you looking for a best fixed rate mortgage loan in West Virginia? Home loan rates Berkeley Springs may offer the best for your buck. With the nice and peaceful surroundings of Berkeley Springs and the proximity to Washington DC and Baltimore, it is an ideal place. Home loan rates in Berkeley Springs is not much different from say Connecticut to Britain.

Owning a home in Connecticut can lead to tax bill savings. The IRS allows you to deduct the interest and points paid on mortgage debt, plus property taxes. Fixed-rate mortgages (FRMs) in Connecticut are suitable for borrowers in use of a conservative mortgage structure. People living in West Virginia and are looking for a home always search for home loan rates Berkeley Springs. Check if the same tax savings in Connecticut applies in West Virginia.

FRMs are characterized by an amortization schedule, payment amount, and interest rate that keep alive the same throughout the loan”s life. It can be a bad idea if you have bad credit and are using the mortgage loan to knock off up bad debt, because your interest rates will be very high. Mortgage loan refinancing in Britain is a good option if you have decent credit, but need for to lower your monthly payments and the amount of interest that you are paying on your debts.

To procure loans you usually use collateral, and home equity loans are no varied. Collateral is property you desire as a win over to repay a debt. Uttermost consumers are unaware that even today, quite a few mortgage brokers lack the proper state credentials to be selling or issuing a home loan (mortgage).

If the commercial loan rates for mortgage refinance are currently higher than what you are paying, then you just require to stick to your existing mortgage loan, but in case the commercial loan rates let come down and are anticipated to persevere there for quite some time in the near future, then you should certainly make choice of a refinance from a lender that offers low mortgage rate refinance based on the existing market rates.

If you refinance for a lower rate but it is adjustable, you could wind up paying more. You should only do this if you get a lower fixed rate on your mortgage loan refinancing in Britain. A home equity loan puts your house to work for you, creating a personal loan borrowed against the value of your home. To discover home equity loans, borrowers want to first become aware of the concept of equity.

Do not be so thrilled that someone will offer on your bad credit that you go for the first loan offered to you. It could be a very costly mistake that you will regret down the road. To do a manageable, cost-conscious mortgage refinance, first select your best option, or how long it will take to start gaining a positive return on your investment of the costs of refinancing.

If you want to live in West Virginia and want to inquire about home loan rates WV, go online and start searching for home loan rates Berkeley Springs. Then you will find what you are looking for. This is an option a lot of people are doing to find what they need.

About The Author

If you Need A Home Loan Rates Berkeley Springs or Info on Mortgage Refinancing go to:http://www.lingwellness.com/howmuchmortgagecaniafford.php

http://www.lingwellness.com/homeloanratesberkeleysprings.php

http://www.lingwellness.com/lowmortgageraterefinance.php

By Ki Gray

When I am looking for real estate what makes my mouth water. Huge cathedral ceilings? Updated kitchens? Recessed lighting? Nope. I love big lots. The bigger the lot the more I get excited. Why do I love big lots.

Over time large lots tend to appreciate faster. In real estate one of the cardinal rules is that generally land increases in value and general structures decrease in value. Why does a structure tend to decrease in value? As a structure gets older it tends to get farther away from safety codes.

But generally properties tend to increase in value because the rate at which the land appreciates outpaces the rate at which the structure is decreasing in value. When you are hoping to sell your property for more in a few years its best to look at the dirt and not the house.

Because land tends to appreciate I usually prefer properties that have more of the current value in the land than in the structure. This means that a property in a new subdivision where the structure account for 70 of the value is not appealing. For instance properties close to a city center can have 65 to 70 percent of the value is in the land.

Of course what is even more appealing is a centrally located 5 acre lot with say a 500 square foot house. Lets run the numbers on a few scenarios to see what I am talking about. Lets assume that land appreciates at 7 percent a year and structures depreciate at 2 percent a year.

First let us look at a property where 70 of the value is in the land.

Year Structure Value Land Value Total Value
0 10 90 100
1 9.6 97.2 106.8
2 9.216 104.976 114.192
3 8.847 113.374 122.221
4 8.493 122.444 130.938
5 8.154 132.240 140.393

In the end the differences between these two properties is pretty significant. What I find surprising is that alot of buyers that are concerned about appreciation will buy a house on a small lot on the far outskirts of the city. They look at the upgraded countertops and other amenities as a sign that they will see significant appreciation. What they don”t realize is that alot of these features that are currently in vogue might not be popular in a few years.

I want to be clear I am not saying everyone should buy a property where land value accounts for most of a properties value. In many cases people enjoy nice amenities that come with a house and the idea of living in an older home holds little to no appeal. But if your primary concern is investment when you are evaluating a potential property you should pay more attention to the lot than the house.

About The Author

Ki helps buyers interested in Austin real estate http://www.escapesomewhere.com his website has a free search of the Austin MLS http://www.escapesomewhere.com/realestate_searchthemls.html along with updates on his Austin real estate blog http://www.escapesomewhere.com/austinblog/