A Guide To Real Estate Investors

Property investors have been urged by real estate experts to get in early to avoid the rush as cash-rich baby boomers move their money from the stock market to the real estate market. This may seem to be a plausible argument, given that many Australians, especially those approaching retirement age, believe they have a good understanding of real estate as an investment. It’s something they can see and touch, while the stock market operates in enigmatic ways that they don’t completely comprehend. The global downturn in share prices over the last 18 months has solidified this position, and investors are looking to preserve what is left of their retirement assets rather than risk being burned by further stock market declines. Why not check here Cash Home Buyers Atlanta-We Buy Houses

However, the expected rise in property investments has yet to materialise, according to the most recent lending results. Instead of real estate developers, first-time owners are rushing into the market, aided in part by government stimulus spending. So, why aren’t real estate investors following suit? There are a variety of reasons why buyers may be hesitant to join the real estate business.

Tougher lending standards

Banks have increased the requirements for borrowers (and owner occupiers) to apply for a mortgage as a result of the Global Financial Crisis (GFC). No-deposit loans, which are blamed in part for the subprime crisis, are becoming increasingly rare, with many lenders requiring a minimum 20% deposit and a track record of lending before offering mortgage financing. With financing being more difficult to come by, there will be buyers who want to buy property but can’t. It has been proposed that tighter lending standards would help prevent the Australian real estate market from experiencing the same kind of declines as the US and UK property markets. In fact, the banks that provide mortgage financing, not the real estate investors, would be covered by the stricter lending requirements. If a lender or owner occupier finds themselves unable to meet mortgage loan repayments due to unemployment or increasing interest rates, a gearing amount of 80 percent or lower is unlikely to help. Because of the stricter lending requirements, if the bank has to sell the property to recoup the money it borrowed in mortgage financing, it would be able to do so even if it has to sell at a significant discount to the original purchase price, either because the real estate value has dropped or because they need to get their money back quickly.

Equity dilution

The size and pace of the stock market crash has wiped out trillions of dollars in shareholder wealth (The ASX All Ords index fell more than 40 percent in 12 months). Before the start of the Global Recession, stock markets around the world had seen huge year-on-year returns dating back to the early 2000s tech crash. Previously, investors might invest in the stock market and use the proceeds to finance real estate purchases. In a financial double whammy, these investors are now without a source of investment income as well as having to provide cash to pay margin calls on loans backed by their stock portfolio. Many investors will be hesitant to sell their shares at rock-bottom fire sale rates, so they could look to sell their investment property to raise funds, increasing the risk of a real estate market crash.

How to Prepare Your Home For Sale

If you’re planning your home to sell for a much higher price, you’ll have to work a little harder to make it look good so that it can sell for a higher price and quickly. There are some things you can do to keep your house on the market. Some of the factors considered are a thorough cleaning with a good interior and exterior, a good climate, and fresh air with no emissions. Remember the adage, “First Impression is the Last Impression,” so if you want to sell your house, make a strong first impression. Ontario Real Estate Agency

Few points to consider when listing your home for sale are as follows:

1) Cleaning: The most effective way to make an impact is to keep your home clean. If you’re keeping your house for sale, make sure it makes a good first impression on the buyer. Clean and tidy areas include the bedroom, kitchen, and hallway.

2) Art: If you enjoy painting, it is a good idea to keep some amazing and meaningful paintings in your house. It is important to provide a low-key neutral colour scheme in the interior.

3) De-Clutter: Check to see if there is any clutter or mess in the kitchen. Remove extra furniture, extra fabric, and extra knick-knacks to make your home appear larger. It would be a good idea to have a storage kit to store these unwanted products.

4) Lighting: It is a good idea to have good lighting in your house. A good mood can be created in the mind of the buyer by using proper lighting. When showing your house, make sure that all of the bulbs and lights are turned on, as this will help your home to glow.

5) Odors: Bad odours in your home will create a negative image in the minds of potential buyers. So, whether you are a chef or a pet owner, make sure that you keep your home clean and refreshed. If you do a Google search, you will find free and good ideas for refreshing your house.

6) Storage Areas: A good storage capacity is important. The storage rooms must be attractive and comfortable in order to accommodate a large number of belongings.

7) Outdoors: When a buyer comes to look at your house, the first thing he notices is if the outdoor areas are neat and have enough room. If listing your home for sale, make certain that your outdoor space is clean and in good condition. This will give your home a new look and make a good first impression.

Your main aim is to sell your home at a fair price and make it attractive when a buyer comes to see it for the first time. However, this can give you a better chance of keeping your home on the market.