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Does apartment rental fall when property prices fall?

Rents increase when the property prices increase. This is a trend that is seen over time. On the other hand, when the property prices fall, rent does not decrease in proportion. In a few cases, rent may even rise. This is because history has shown that property prices keep on increasing over a long stretch of time. Also the rent does not only depend on the property price and is influenced by a variety of economic factors in that particular area. This has grave consequences for property investing.

A study was conducted on the relationship between the rents and the sales price. The study revealed that rents oscillated at 5% of home prices until the year 1995. Towards the end of that year the monthly rent was around $533. However, in the beginning of the year1996, home prices started to increase must faster compared to rents. Towards the end of 2006, they had doubled to around $282,000. That decreased the annual price ratio to 3.84%. When buying investment property you must take into this account annual price ratio.

So we can see that in many cases, rent actually had yet to catch up with the increase in property prices. Decrease in property prices is actually restoring the balance. Thus we can conclude that rent may not always fall when property price falls. There is much truth to this as most individuals might believe that it is imperative that you find a strong method to index your salary to property rental costs. Between 2002 to 2007 in the USA, property prices soared with no top in sight. However as some economists believed while reviewing the Bollinger Bands that the market was trending for too long and that a top was well within sight. Many property investors did not heed that warning and bought on the brink of the sub prime mortgage crises only to see their property investment values fall and they were helpless to prevent substantial losses as even below market value they were unable to divest the property. We have added a small video to help illustrate the proper rudiments of investing in property and real estate.

[youtube LGT9uv6esKg&rel=1 nolink]

[tags]apartment rental and property prices,property investing,property investment,apartment renting[/tags]

What is the advantage and disadvantage of a foreclosure?

Before going to any foreclosure auctions you need to know them clearly what the advantages and disadvantages of a foreclosure are. By going through this page you can come across the pros and cons of foreclosure. So hang on.

If you are buying your foreclosure from an auction you have only 2 advantages. At the foreclosure auction you get, instead of a high bidding, a low starting. But at the bank, negotiations generally start at the full-appraised value and it is you, who exercise pressure on them to reduce the price. The second advantage of being at a Foreclosure Auction is that these mark a less crowed.

However, if you are being foreclosed, no matter from where you have bought the foreclosure, because you are unable to pay your financial responsibilities, then the consequence is definitely bad. It’s definite that you will lose your house with a foreclosure plus if there is any equity that will also be lost in the process. In addition to these losses, your credit will get ruined, and it’s better for you not to plan buying another house immediately. So you must be financially prepared if you go for a foreclosure, and its better if you can make your payments clear on time.

[tags]foreclosure,advantages of foreclosures,disadvantages of foreclosure,bank property seizure[/tags]

How can I improve the value of my property?

It is utmost essential for you to improve the value of your property because as a homeowner you need to provide proper maintenance to your home. This is primarily because if you have maintained your home properly then you get a decent price in the market when you want to resale. The factors that determine the price rate in the market are discussed below:

1. The condition of your property.

2. Additions and alterations of your home.

3. The locality and the neighborhood .

4. A remodeling of the bathrooms.

5. Addition of a bathroom.

6. Renovating the master bedroom that includes a full bath

Market prices can increase when it is a seller’s market i.e. there is a strong economy and an increase in home sales. In case you want to sell your vehicle, it should undergo proper and regular maintenance. A not-so-good remodeling of your home or your vehicle has chances of decreasing the value of your property instead of an increase. So if you want to improve the value of your property, you need to take good care of it by refurbishing it and making some necessary changes even if it is expensive or else you could be a loser.

[tags]property,real estate,improve the value of your property[/tags]

How will the credit crunch affect real estate sales in the US?

There is a piece of good news for the small business owners who are involved with ‘owner-occupied commercial real estates’. There is a very less chance that the credit crunch will affect real estate sales in the United States.

It has also been seen that the credit crunch is influencing homeowners and is not just affecting ‘commercial real estate loans’. According to Chris Pettersen, Vice President of U.S. Bank, SBA division, “The residential lending downturn has had no impact on SBA commercial real estate financing”.

For the small business owners, commercial real estate can be a solid investment.

This particularly possible if the area, for a considerable period of time, had been experiencing low ‘commercial vacancy rates’ and ‘low interest rates’. Commercial real estate has long been strong in Ventura County, either going up or holding its value since 1996, Pettersen said.

Much in contrast to the ‘residential lending market’, there has been no requirement for commercial real estate lenders to alter their credit parameters. Investing in real estate business condominiums allows small businesses to obtain facilities that conform to their needs, especially since the experts feel that the credit crunch will not affect real estate sales in the United States.

What can I do if I rent and the property is being foreclosed?

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If you rent and the property is being closed, and your landlord wants to legally evict you from this house, what he must do at the very first place is to file a suit. If your landlord files a suit against you in the court, then you shall get in turn, from the court, some legal documents. This is called the petitions and summons which would ask you to appear before the court. This document would also tell you what your landlord is demanding and where to appear before the court.

It wouldn’t be wise to ignore the lawsuit because if you do so, then you may face problems later. This is because of the fact that if you do not appear before the court in time, then a default judgment will be entered against you. But in the other way round, if you have any thing against your landlord, then in that case you have to file a suit against him.

A landlord is forbidden from unlawfully throw you out without a court order, i.e., by locking you out, eliminating doors to your residence, closing off your utilities, or dispatching you of your property. The local police would be of immense help to you in these cases.

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