Purchasing Fairfield Real Estate And The Importance Of Sound Financial Planning
Purchasing a property is a big financial investment, and the decisions that you make with regards to the property you acquire could end up affecting your financial situation for many years to come. Planning your initial steps into the world of Fairfield real estate will determine whether your finances remain intact or whether you land up in big financial difficulties a bit further down the road, so make sure that you keep this in mind at all times. Planning and preparation is one of the most important factors of successful purchases of Fairfield real estate, and without it, you cannot hope to make a sound decision that will benefit you in the long run.
When some people purchase Fairfield real estate, they do so more on a whim than with sound, rational decision making, and this could lead to a big mistake. Budgeting and being aware of what you can afford is one of the most important facets of making sound financial decisions, and without this, you might end up purchasing a home that you cannot afford. The best way to start your venture into purchasing a new home is to work out exactly what you can afford to repay on your mortgage each month and then view houses within the price range only. Do not tempt yourself by viewing homes that are well outside of your budget, as this could cause you to wonder off your sound financial path.
Once you know exactly how much you can afford to repay each month, you can then begin looking at prospective Fairfield real estate options to choose the one that appeals to you most. Remember, once you have chosen the home of your dreams, you will need to apply for a loan, and this is when you will be provided with the interest rate that a financial lender will offer you. The interest rate and loan term will greatly affect the amount that you will be able to repay at the end of the day, so keep this in mind throughout the process.
Smaller details, such as the amount of work that needs to be conducted on a property and the transfer fees during the sale, will affect the amount that you have to pay to get your hands on the home of your dreams, so do not rush this process, or you might end up forgetting about these details. Make sure that when the time comes for you to invest in Fairfield real estate, you will be able to do so without any difficulty and repay your mortgage every month without having to dip into your savings to do so.
For more information with Fairfield real estate, please visit us on our website.
Six Reasons I Bought A House This Week
For the past three months Gail and I have been looking for a home to buy. Every few days I would check out new listings in the area we chose. We toured a few homes a week. We made an offer on a home on Wednesday. The offer was accepted. We still need to qualify for the mortgage and complete our home inspection, but I foresee no obstacles t a successful close
Here are the reasons we bought now:
Prices have hit bottom.
Market America Realty and Investment Group has over 116 listings, One third of them sell for above the ask. In Lee County, the median price home is 4% lower than one year ago at $91,000, but this number is pulled down by the large number of REO’s that the banks are clearing away. Ask any Realtor in town working with buyers and you will find that the hot price points are between $250 and $350,000 Here we are seeing increases.
Choices will dwindle
More and more we are seeing agents raise their hands and talk about a buyer they are working for that can’t fine the right house. I am reminded of the pricing strategy at some discount stores where they lower the price on certain goods every week. You can find an item you want and you may come back next week hoping for the discount but you find that it’s been sold already. We have quite a few buyers we are working with that have made three or four offers and lost them all to a higher or earlier buyer.
Interest Rates are low and on the way up
Gail and I were able to get a 5/1 arm at 3.75%. (The rate is locked at 3.75% and then will not move more that one point at the end of that five years) But these rates will not be around very long. According to today’s paper rates are still below 5% across the board.. The government is going to stop facilitating mortgage backed securities. On March 31, the Federal Reserve will stop buying these securities. Trust me, interest rates will be going up
I want to lock in “Save our Homes” at today’s prices.
Our home will be homesteaded as it will be our primary home. I am pleased that I will lock in the homestead at today’s prices. My taxes increases will be set at today’s prices and the amount of the increase will be set.
Right House, Right Neighborhood.
Of course we had to find the right home in the neighborhood we chose. Location, location, location. Could we have found more home for less money? Probably. But not where we wanted to be. When you are looking for a home, become an expert in the area you are looking.. You will know that a deal is good when it is presented to you.
House had the right things wrong with it.
The things this house did not have, I know I can add or create from the existing space. It has good bones and will give us a base for improving our value, increasing our investment, and insuring a long and happy home.
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In my role as a broker I run what I would call a “boutique” real estate agency and I run my new franchise, Engel and Voelkers Fort Myers River District – high end residential homes. I am a motivator, a canceler of energy, and sometime coach.
Real Estate Recovery 2012
If we really are in Recovery Mode, what do you do about it?
I’m in a “fortune rebuilding mode” and the real estate market is in a “recovery mode”. Good for me, I think these two modes should work together on this, don’t you?
Of course, it’s all about timing, isn’t it? In real estate perhaps the #4 most important thing (right after the first three: location, location, and location), is TIMING.
I believe we are in recovery mode. Most of my associates agree with me. Some do not. But okay. Let’s assume you agree with me.
What do you do about it?
First let’s talk about recovery. Since 2005 there are quite a few battle scars, and most of these scars have to do with the sinking marketable value of real estate. In the single family, owner occupied market there are home owners that have mortgages that not only exceed the current value of their homes but their monthly payments exceed their ability to repay that note.
The term “underwater” applies to these folk. Let me examine the factors that led to this and what is happening now that leads me to believe that we are in recovery mode.
Recovery Factors
Then ( August 2005) Now ( January 2012)
Loose Lending Requirements Logical Lending Requirements
Bigger Sucker Theory End user or Buy and Rent Buyer
Irrational Exuberance Cautious Optimism
6% money 4% money
Predictive Appraising Cautious Historical Appraising
Bigger Is Better Smaller is Smarter
Unemployment Low Unemployment High
Everyone Developing/Building Professionals Developing/Building
Time will heal my mistakes attitude Make no mistakes
Prices Rising Prices Rising
Consumer Optimism High Consumer Optimism Low
Conspicuous Consumption Flagrant Frugality
Of the all the recovery factors listing above, unemployment and consumer optimism remain as the two recovery factors that need more help, and recent trends indicate the unemployment is decreasing which will have a positive effect on consumer optimism.
Buyers and investors have had an attitude adjustment for the better and while money is harder to borrow, it is cheaper. Gone are the Mc Mansions and in come the smart homes. Flagrant frugality is kicking out conspicuous consumption, and conservative thinking rules. The market sank, big time, and with it took the inexperienced and the weak. Fortunately those that remain are wiser for the wear.
As this tiring presidential election season wears on we will see more positive economic news. Investors are not buying and then counting on a bigger sucker coming along and bailing them out, the exit strategies have to be well thought out and planned on before acquisition.
Will there be some setbacks? Sure, but the trend is toward a recovery and parity between replacement cost and cost to build in both commercial and residential markets.
What to do now?
Following are just some of my thoughts on this subject.
1. First and foremost buy because it makes sense to you, not to someone else. Know your exit before you get into a deal. But I would be buying what you can at as low of a percentage of replacement cost as the market will bear.
2. If you are looking for a single family home, now is the time and in fact it might be a bit late. Inventory of the most desirable homes in the most popular areas is being depleted, and interest rates are still below 4%. For example, if you want canal front pool home in Cape Coral for under $250,000 less than thirty years old, there are now only 5 to choose from!
3. If you are thinking of building in the future, consider doing it now, raw materials suppliers, builders, and land owners are cutting deals. You may never build this cheaply again.
4. Get your personal house in order. Before you venture out into real estate purchases, make sure your savings and health plans are in order. The expression “don’t bet the farm” was ignored back in 2003-2005. Certainly don’t do that today!
5. Get rich slowly. There is no magic pill to recovery. Its happening and it will continue to happen, slowly, step by step.
6. Look at the upcoming trends.
a. I see more concern about utility, water, and oil costs. This is why we are started MA-Zero.
b. More infill properties close to paid for infrastructure
c. Smaller and smarter
We are in recovery mode for sure; will I ever rebuild my fortune? Well one thing is for sure: I won’t rebuild it if I don’t try.
You can choose to participate or sit on the side lines.
Me? I’m in there.
In my role as a broker I run what I would call a “boutique” real estate agency and I run my new franchise, Engel and Voelkers Fort Myers River District – high end residential homes. I am a motivator, a canceler of energy, and sometime coach.
Southwest Florida Real Estate
In Southwest Florida Real Estate, it’s Time to think long term.
I thought the phone call was to try to sell me advertising and I asked Erin to take a message. She said the caller was from the Fort Myers News Press. Then I recognized the name from her by-line. I immediately called her back. Lindsey was doing an article about the commercial market (normally Dick Hogan’s beat). She asked my opinion about the commercial market. I only got a few comments printed in the article (See Here) so I’d thought I would make some commentary to my readers directly.
First some general observations; It is human nature to look at the steps in the journey and not the complete trip. When we are in the middle of a crisis we are robbed of the perspective of the 30,000 foot view; the big picture; and we certainly don’t have the luxury of hind sight yet. Pundits have talked about this for years. Comments like; “It’s hard to know your original objective was to drain the swamp when you are up to your butt in alligators” bring an accurate picture to mind. Most of us are working hard to survive in this market and have trouble focusing on any bigger picture than paying the rent, meeting payroll, or in some cases, just getting through the day.
But to succeed you need to think past today’s job, today’s task, this moment’s problem; and look at the long term.
Long term, the Florida real estate market will flourish. Inflation will return (big time, I am afraid). Houses will sell, and the commercial space will be leased. Construction will return. Oil Spills will be cleaned up, and millions of baby boomers will continue to make their way to Florida.
Successful investors need to see opportunity where others see obstacles. Where some look at an abandoned bank and see future blight, I see a plastic surgery center. Where others see a closed Publix location, I see a country western bar.
Florida’s commercial market is certainly a mess: vacant buildings, empty lots, and incomplete projects. Jack Wood, a client of ours from Canada assembled a fine block of property along US 41 near downtown Fort Myers, the former Ted’s Sheds sales lot, Office Furniture showroom and warehouse and a transmission shop long 41. He was going to put in a mixed uses project on the block. Now it all sits empty except for the transmission shop ( Link to listing here) ( Other commercial Listings here). We are offering incentives to tenants and buyers alike, however, and I would say that is all the commercial property in town, you would be hard pressed not to find some incentives from the landlords or sellers. Where there are stressed assets there is opportunity.
Many of the fortunes made in real estate were made by the investors that saw the opportunities where others saw the problems.
Opportunities that I see now:
1. Buying single family homes that were built post 2002 at below cost prices.
2. Buying ready to build lots for new homes. Concentrate on lots with infrastructure in place.
3. Buying strategically located vacant commercial buildings, like banks, and converting to medical and government use.
4. The hospitality industry is financially stressed right now, and for cash buyers there are very low prices, well located properties.
5. Taking over projects from Banks/Developers. Projects like Island Pines, and Oasis may offer opportunity.
These bulk purchases may be acquired at almost half the replacement value. These opportunities need to be treated as what they are long term; not get rich schemes. Make no mistake and most experts agree we are going to have high inflation back. When it does come back you are going to want to have real estate as part of your defense.
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“In my role as a broker I run what I would call a “boutique” real estate agency and I run my new franchise, Engel and Voelkers Fort Myers River District – high end residential homes. I am a motivator, a canceler of energy, and sometimes coac
French Property Make The Most Of Your Viewing Trip
You dont want to buy a property without seeing it for yourself first-hand, and it might take lots of appointments with agents and viewings until you find the French property which is right for you.
When you are travelling down to look at French property, being prepared can help you be a lot more efficient and accomplish more while you are there. Here are a few tips that will help you get ready for your viewing trip to French property and make the most of your time there:
Book appointments for viewings and meetings with agents in advance. You might be tempted just to walk in when you get there, but the agent might be busy and you will be forced to wait. The time that you spend waiting could be spent looking at other property!
Tell your agent exactly what it is you are looking for in a French property, and what you are not looking for. If they have a clear picture of your search image you will not waste time looking at properties which are not the right fit for your particular needs.
Make sure that every French property which you are considering looking at is still on the market. You dont want to spend the afternoon driving out to a countryside cottage only to find out that it has already been snapped up by another buyer.
Book enough time to see the properties that you are interested in, because houses in rural France might be some distance away from each other and you will want to have several hours to look at a house thoroughly and get a good impression of it.
If you can, try to leave an extra day at the end of your trip. This day can be used for looking taking a second look at a French property that you are particularly interested in, or rescheduling a viewing if one is cancelled.
Pack a lunch with you. If you will be driving from one rural French property to another it can take a lot of time out of your schedule to find a village and stop for lunch. Many French restaurants in rural areas are not open for many hours of the day, so you could find it difficult to get served. If you bring some food with you it is easy to stop in a scenic spot and have a quick picnic whenever it is convenient for you.
Plan strategically. Rather than driving back and forth throughout the day try to set up viewings at properties that are close together on one day so that you save time.
These are just a few ways that you can make the most of your viewing trip to look at French property. Have fun and good luck finding the holiday home of your dreams!
If you are planning a trip to look at French property, here are some tips for using your time efficiently.
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