Category: real estate

How to Make Money Building and Renting Vacation Homes?

When it comes to purchasing a residential lot, the reasons for building a house can be numerous, from living in it, establishing an estate, or earning extra money through your rent.

Many people choose to invest in more than one home, specifically building a vacation home to enjoy vacation periods and get out of the routine, but also to take advantage of and rent it when it is not planned to live in it.

The demand for vacation homes in Pakistan is increasing, and this trend is expected to continue, so it is the perfect time to invest in a property, such as Park view lahore , for this purpose. 

This type of investment has existed for more than 45 years and is present almost everywhere in the world, being a success, and even more so now, thanks to media such as Airbnb and Vrbo.

In this article, we will mention how you can take advantage of your investment to acquire residential land and build a vacation home that generates constant income.

What are Vacation Homes?

To begin with, we must define what a vacation home is: as its name indicates, it is a property designed to enjoy your own space while you are traveling.

Vacation homes offer you all the comforts of home; in addition to having the independence that a hotel and other similar types of accommodation do not offer, they are an excellent option to rest in a more private environment and with greater freedoms.

You can find vacation home rentals in oceanfront locations with access to private beaches and even in luxury apartments in the middle of the city.

In this type of property, they have amenities such as a swimming pool, balcony or terrace, gardens, parking, and even —if you are in a luxury residence— services such as a spa, massages, yoga, parks and many more.

Advantages of Building a Vacation Home

Investing in a property is one of the safest investments you can make, whether you are going to live in it or not, especially if the location of your choice is in an area where capital gains are constantly increasing.

Among the main advantages of investing in a vacation home are:

1. Double Benefit: Vacation and Produce an Income

Building a property of this type results in great benefits because you will have at your disposal a house or apartment to vacation with your family, partner or friends in your favorite place and, above all, you will be able to rent it the rest of the year producing an income.

An advantage of buying a property is that it is a tangible asset, so inflation does not affect it as much as money.

2. The Demand for Vacation Homes is on the Rise

The sum in 2019 for investments in vacation rentals was estimated at 170 million dollars according to Research and Markets, and —according to Market Insights Reports— a 5.8% growth in the vacation rental market is forecast during the forecast period of 2022-2028. 

This is because vacation homes offer a different type of accommodation than hotels. In addition, its popularity has been increasing thanks to platforms such as Airbnb and Vrbo, so the investment to acquire real estate for this purpose is increasing.

3. Produces a Consistent Return on Investment

Profitability can be defined as the profit obtained from an investment. To do this, you must consider factors such as maintenance costs and payments for services and taxes.

Investing in real estate is safe since it can maintain or increase its value over the years, depending on several factors such as location, which has a direct impact on the capital gain of the property.

The value of your rent will go hand in hand with the value of your property; therefore, you must make sure that it has been manufactured with quality materials to avoid extra maintenance costs.

Similarly, the amenities and services with which it will be offered for rent play an important role when setting rates.

It is worth mentioning that this return on investment will be safer if it is acquired in areas near important tourist spots. 

How to Make Money Renting Vacation Homes

1. Use Platforms like Airbnb or Vrbo

Hotels have been able to maintain their levels of visits, but —currently— young people opt for simpler options that provide them with greater freedom and privacy.

The popularity of these applications is evident thanks to technological advances, and it is becoming more and more common to think of renting a vacation home for a weekend or longer, thanks to the facilities found in this medium.

Whether the trips are made for pleasure or for work and business reasons, these applications have managed to position themselves among the favorites when looking for accommodation.

What is this about?

Travelers see vacation rentals as an opportunity to make their stay more interesting and a unique experience.

For example, when making a business trip, being able to stay in a luxury apartment with amenities such as a gym, spa, and swimming pool, among others, is more attractive than a conventional hotel room.

Likewise, spending a family stay in a house facing the sea, with all the comforts and services they may need, promises a more peaceful and relaxed trip.

In addition to the above, these types of services are reliable and safe. Furthermore, some of the aspects that make these platforms different are:

  • You will be part of a global travel community of more than 190 countries
  • There is a relationship between travelers and hosts
  • The customer support team is available 24/7 and in multiple languages
  • Payment protection in case of fraud
  • Emergency Assistance

Thanks to this, it is that investing in a property of this type results in great benefits; you enjoy your own space in an exceptional place with all the amenities when you need to vacation, and the rest of the time you put it up for rent through platforms like Airbnb and Vrbo to ensure a passive income.

2. Rent through Social Networks

If you want to take charge of the entire process of personally offering and handing over the house to tenants, then using social networks is a good option since you will maintain direct contact during the process.

Platforms like Facebook Marketplace are perfect for offering a vacation home for rent, especially if you want to keep it local.

3. Adapt an Area for Commercial Premises

A different way of making money with a vacation home is to adapt some of its areas for another purpose, such as commercial premises.

If you have a large enough space, or the location of the property is particularly advantageous, then you can resort to making the modifications with the help of an architect to separate the living area from the premises.

4. Offer Only the Rent of a Room

Even if you plan to live in residence, an idea to generate extra income is to offer a free room for rent, in case there are several rooms. This works perfectly for students, professionals, and even foreigners on vacation.

This option is perfect for taking advantage of that extra space without having to vacate the house and still continue with a constant income.

5. Rent out the Garden or Garage

If your vacation home is located in a busy city with constant traffic, one way to generate extra income is to offer the garage for rent. In places where finding parking space is so difficult, this option is a good way to generate income.

On the other hand, not all homes have spaces such as gardens or terraces. If this is the case for your vacation home, then you can take advantage of it to rent it.

How to Generate More Income with the Same Space?

The same space for rent can generate better income if it is conditioned with this purpose in mind. 

If you plan that your vacation home will also be rented, it is important to consider some factors that mean that the same house can be offered at higher costs.

To begin with, the decoration always plays an important role, since one of the first approaches that the possible client has is photographs. Similarly, make sure you have all the basic services, such as electricity and water, but also benefits such as wifi, air conditioning, etc. The higher the benefits, the better the rate and demand.

On the other hand, if you plan to build a vacation home, then you can plan its details not only to your preference but also to the possibilities offered by putting it up for rent.

And if you want to wait before building your vacation home, there is also the option of renting the land, always trying to make the lease contract to protect your assets.

Factors to Consider Before Buying to Rent

If you want to invest in a vacation home to rent later, it is important that you take into account the following factors before buying:

1. Accessibility and Connectivity

A property that is accessible and close to avenues that connect with important points in the city is a key factor for decision making. 

For example, in a cosmopolitan city, acquiring a residential lot on the main avenue offers better rental opportunities for any type of home that you want to develop in the future, given the facilities it offers to reach areas of tourist interest, like the beach or Fifth Avenue.

2. Growth Projection

Another factor that you should consider when making an investment since it has an impact on the value of the property over the years as well as on the income that can be obtained.

3. Area Security

Many nationals and foreigners seek the peace of mind of being located in a safe area; therefore, it is an essential point to consider before purchasing. Due to factors like this, many investors are constantly betting on the Mexican southeast.

4. Amenities

They are attractive —especially— when it comes to looking for a place to relax and enjoy a quiet vacation, so they influence the purchase decision in the same way.

Location is a factor that greatly influences the value of a property. You must be sure that the area has all the services with constant growth projections.

A property located near services such as hospitals, first-class schools, shopping malls, restaurants, and entertainment centers, among others, guarantees an increase in capital gains and your investment.

Make your Money Grow by Investing in a Vacation Home

Undoubtedly, real estate investment is safe. It guarantees that your money will grow and it is an excellent business option.

The facilities provided by the platforms for renting vacation homes allow you to start receiving income almost immediately.

At Sky Marketing, we have more than 25 years of experience, bringing investors closer to the most promising projects in Pakistan with a guaranteed return on investment.

If you have investment plans in Pakistan, contact us and one of our real estate experts will advise you according to your objectives and investment plans. 

To learn more about how to invest and earn money, we recommend you review our real estate blog, where you will find articles such as rate of return: How is it calculated in real estate? Is it better to buy land or a house for retirement?

Author: M. Rubayet

Where Do Mortgage Lenders Get Their Money?

Mortgage lending is a complex industry that consists of lenders, investors, and borrowers. Many homeowners don’t even know what goes on behind the scenes before, during, or after they get their money. Instead, they’re just happy to be able to afford a home loan and pay it back every month. Of course, mortgage finance has many aspects, and regular borrowers may have questions about how they work, lender requirements, and how much home they can afford. 

One thing many borrowers don’t consider is where lenders get the money to fund the loans. Mortgage lenders give loans worth hundreds of thousands of dollars to borrowers every single day, and they don’t keep this money on hand to fund those loans either. Instead, funding a loan is a complex process with an extensive network of lenders, investors, banks, and other parties. 

How Does a Mortgage Get Funded?

The money used to fund a mortgage goes through a lengthy process before the approved borrower sees it. Some lenders have cash reserves they use to fund loans, while others borrow money. Ultimately, there’s a secondary mortgage market that provides lenders with the funds they need to generate mortgage loans. In this market, lenders purchase loans from other lenders and package and sell mortgages to investors in the secondary market. 

For example, a borrower submits a mortgage loan application, which is reviewed and approved by the lender. To get the money for the loan, the lender can draw from its own cash reserves or take a warehouse line of credit and pay the warehouse lender back when it sells the mortgage loan in the secondary market. 

Ultimately, borrowers don’t have to worry about the second market at all, but they may notice when a different lender or company starts sending them their mortgage bills. Mortgages are bought and sold every day by other companies, and it doesn’t affect how much borrowers pay since their interest rates are locked in from the beginning of the loan. However, mortgage lenders and other institutions can earn more money by selling mortgages and trading them on the secondary market.

How Do Mortgage Lenders Make Money?

Earlier, we talked about how some mortgage lenders might have cash reserves they use to fund at least some of the mortgage loans they give. Mortgage lenders make money in a few different ways, including: 

Origination Fees

When you get a mortgage loan, you pay origination fees that are up to 1% of the loan value. These fees are due along with your monthly mortgage payments, and most borrowers don’t even notice them. However, the origination fee increases the interest rate (APR) on a mortgage based on the total cost of the home. Borrowers can choose to finance the origination fee with the loan amount, but that will increase their interest rate, giving them a higher monthly payment. 

Discount Points

Discount points are part of the mortgage loan, and they’re typically due at the time of closing to help reduce interest rates. One point equals 1% of the mortgage amount and can reduce the total loan amount. Paying points upfront benefits borrowers because it means a less expensive loan, but it also pays lenders right away, adding to their cash reserves. 

Yield Spread Premium

Mortgage lenders may borrow money from banks at low-interest rates to give loans to borrowers. The difference between their interest rate and the one charged to homeowners and the rate they pay for replacing that money is called the yield spread premium (YSP). 

Closing Costs

Lenders also make money from closing costs and other various fees they charge throughout the mortgage application process. Closing costs typically vary by lender, so those fees should be explained in the estimate you get upfront after applying. 

Securities

Mortgage-backed securities are when lenders group loans of different profit levels together and sell them for a profit to free up more money and give out more loans, ultimately earning them more revenue. Pension funds, insurance companies, and other investors can purchase these securities as part of their investment portfolios and also earn an income. 

Servicing Loans

Lenders earn revenue by serving loans after selling securities. If the mortgage-backed security investors can’t process the payments themselves or handle administrative tasks, the previous lender may choose to do loan serving for a fee, allowing them to process the funds. 

Wrapping Up 

While some lenders have cash reserves they use for loans, many don’t keep that kind of money on hand because it doesn’t allow them to fund as many mortgages. So instead, most lenders work with the three major institutions Fannie Mae, Freddie Mac, and Ginnie Mae.

The company you pay your monthly mortgage payments to may not be the one that actually owns your loan. Instead, they might just be the ones servicing the loan and taking a small percentage for a fee when other institutions like Fannie Mae or groups of investors own the loan. 

In most cases, your mortgage loan is pooled with other loans and sold off, but a mortgage lender might continue to service the loan in return for a small fee. Many companies service billions of dollars worth of mortgage loans instead of actually owning the loans themselves. Once your loan is sold in a pool, the lender continues to make money through other methods like origination and closing fees. 

So, if you ever thought your mortgage loan was owned by the company that sends you the bill, you’re probably wrong. Of course, you can always ask your lender how it works if you’re interested, but your bill will stay the same no matter what. In most cases, borrowers don’t need to know where their money came from or where it’s going, but it does raise some interesting questions about how loans are funded and serviced. If you’ve ever wondered why the company name on your mortgage bill keeps changing, your loan is likely continuing to be sold to different companies or serviced by different lenders. 

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer where she shares knowledge about general business, marketing, lifestyle, wellness or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music. 

If you like to do some further reading, check out https://www.birchgold.com/news/ultimate-financial-solution/

The Top Five Reasons Why Condos are Great for Single Women

Condo living has many benefits, particularly for single women who are interested in becoming homeowners. From increased safety to shared household resources, condos have plenty to offer those who are looking to live in the city. These top five reasons why Tridel Condos in Toronto are great for single women will help you decide if this type of home ownership might be right for you!

Convenience

One of the top reasons why condos are great for single women is their convenience. With no need to mow a lawn or shovel snow, a condo dweller’s life is fairly hassle-free. It doesn’t take much to keep up with a condo, making them simple and stress-free options that can be changed up with seasonal decor in order to create a fresh look. For those who enjoy pampering themselves, there’s also no need to worry about maintenance when it comes to keeping your home clean. Simply hire a cleaning service once every few weeks and you’ll always have a tidy place to come home to.

Flexibility

If you rent, it can be difficult to make big changes to your living situation. If a landlord disagrees with your plans or needs, you may have to look elsewhere if you don’t live in an area with rent control. When renting a condo unit, however, owners usually give tenants more flexibility when it comes to alterations and moving out before their lease is up. Plus, buying condos often takes less cash than houses and requires much lower down payments compared to other housing options.

Safety

While renting an apartment, you don’t own any of your possessions and you have to worry about who might take them. In a condo, everything is yours; even if you have a nosy neighbor, they can’t really break in to steal your stuff because only people with keys can get into most condos. It also increases your peace of mind knowing that everything is safe when you go on vacation or travel for work – condo associations usually offer managers who can keep an eye on things in your absence.

Lower Costs

In most cases, condos are cheaper than single-family homes or townhouses. That’s due to several factors, including smaller floor plans, shared maintenance costs and reduced taxes. If you’re living on a single income—like most singles—it makes sense to go with a condo so you can live large in a small space. Plus, as your budget grows over time, you can always move into a larger unit or purchase a standalone home if you want.

Options Galore

Condo living gives you a variety of options. Renting and buying are popular options, depending on your long-term goals. For example, if you want to settle down in a particular neighborhood, purchasing a condo could be a smart investment. If you’re looking to live in a neighborhood while keeping your options open, renting is an excellent choice.

Why Women Should Consider Investing In Real Estate

Investing in real estates, like condos, is one of many avenues women can take to get ahead. Here are five reasons why they should consider buying a condo.

1. Condo Investment Gives You A Safe Place To Live: If you’re single and want to own your own home, but don’t have much money saved up yet, you might be wondering if it’s possible to buy a home without going broke in the process. Fortunately, there are options out there that make it possible—such as investing in condos instead of houses.

2. Owning A Condo Is More Affordable Than Buying A House: One of the main benefits of buying a condo is that it will be more affordable than purchasing a house. As such, you won’t need to put down as big of a down payment on your condo investment; oftentimes, all you need is 5% or 10% down!

3. You Can Find Your Dream Condo Easily With The Right Help: Finding your dream condo isn’t always easy, especially when you’re on a budget. However, with help from experts who know their way around downtown Toronto real estate, finding your ideal space doesn’t have to be difficult. You can also contact  Tridel Condos to get  the condo of your dreams.

4. You Don’t Have To Worry About Maintenance And Repairs: One of the most stressful parts about owning a home is having to deal with maintenance and repairs. Luckily, that’s not something you have to worry about when it comes to condo living! Instead, your condominium association takes care of these things for you—making life easier overall.

Author: Boris Petrov

The Effects of Dirty Air Ducts on Your Family’s Health

If you’re concerned about the indoor air quality of your home, one of the most effective ways to improve it is by cleaning and maintaining your home’s heating and cooling system, including the air ducts in your home. In fact, dirty air ducts have been shown to have some serious adverse effects on your family’s health, such as asthma and allergies, respiratory diseases, and even cancer! To help you learn more about this issue, here are four things you should know about dirty air ducts.

Why dirty air ducts matter

Clean air ducts keep pollutants away from your body. If they’re dirty, you could breathe in mold, bacteria, and dust mites that would otherwise stay in your HVAC system. These contaminants can cause allergic reactions and other respiratory problems. In fact, when people suffer from asthma or allergies, it’s often due to poor indoor air quality. Regularly cleaning your air ducts can improve your family’s health by preventing airborne allergens from circulating throughout your home.

How dirty air ducts affect your family’s health

You may not realize it, but your home’s air duct system can be a breeding ground for mold, mildew, and bacteria. If these contaminants aren’t regularly removed from your air duct system through proper cleaning, they could affect your family’s health in negative ways. Read below to learn more about how dirty air ducts can harm you and how Ontario air duct cleaning services your vents can help improve your family’s overall health.

One way that dirty air ducts negatively impact your family is by exposing them to harmful biological pollutants like mold and mildew spores. When breathing in large quantities of mold or mildew spores, people are at risk for developing symptoms related to allergy or asthma, such as coughing, wheezing or shortness of breath. Additionally, certain people who have weakened immune systems are also at an increased risk for developing infections when exposed to high levels of biological pollutants present in unclean air duct systems.

5 Ways Dirty Air Ducts Affect Your Family’s Health

It’s not news that air ducts can be dirty and harbor mold, dust mites, and other contaminants. But just how dirty are they? If you have allergies or asthma, you may already have a strong opinion about that question. And if you don’t, it’s time to start paying attention. Here are four ways dirty air ducts affect your family’s health

1. Contaminated air ducts put everyone at risk for illnesses: A study conducted by Texas Tech University found that certain kinds of bacteria could linger in your home’s heating and cooling system for more than two years! This means when you turn on your HVAC system, those same bacteria get blown into your home’s interior—right where you spend most of your time. According to another study published in Microbial Ecology, people who suffer from asthma are particularly vulnerable to these types of infections. As an asthmatic myself, I know first-hand how important it is to keep my air ducts clean.

2. The effects of contaminated air ducts can last for generations: Not only do unclean air ducts pose a serious threat to your immediate health, but they also threaten your family’s long-term well being. For example, researchers discovered that one particular bacterium known as Staphylococcus aureus (or S. Aureus) could survive inside of an air duct system for up to three months! What’s worse is that S. Aureus isn’t even all that dangerous on its own. However, once it gets mixed with other pathogens like E. coli and Streptococcus pneumoniae, things can get really bad really fast.

3. Cleaning your air ducts will improve your indoor air quality: Have you ever wondered why some rooms in your house feel stuffy while others seem fresh and crisp? That difference is likely due to poor indoor air quality. In fact, according to Environmental Protection Agency estimates, indoor air pollution causes roughly 15% of all new cases of asthma each year. One way to improve your home’s air quality is by having your air ducts cleaned regularly.

4. Cleaning your air ducts can help you save money: Did you know that cleaning your air ducts every few years can help lower your energy bills? Well, it’s true! So You can Contact Ontario Duct Cleaning to schedule your service in Brampton. When your air ducts are clogged with dirt and debris, they become less efficient at distributing warm or cool air throughout your home. When that happens, you end up wasting energy trying to compensate for what should be happening naturally.

Author: Boris Petrov

Rammed Earth Houses

Rammed earth houses are a type of construction that has been used for centuries. It is a sustainable building technique that uses locally-available materials and has low environmental impact.

Rammed earth, or some may also call it Adobe Construction, is a technique of building with natural, local materials, such as clay, sand, straw or water. The mixture is compacted to form walls and other structures. Rammed earth houses are durable and long-lasting; they require little maintenance and they provide excellent insulation against heat and cold.

How to Build a Rammed Earth House

Rammed earth is a type of construction that is done by packing earth, sand, and clay together to form a solid mass. The mix is poured into a formwork, compressed and allowed to dry. The mortar that binds the solid mass is either a clay mix or lime putty, and can be made from natural ingredients or manufactured. The Wikipedia article on “Rammed earth” is here.

Rammed earth is one of the oldest building techniques in the world. It dates back to at least 2500 BC with evidence found in the Middle East, Africa, and Europe. The technique was used to build many famous landmarks including the Great Wall of China and parts of the Egyptian pyramids.

Nowadays, rammed earth houses are still being built around the world but they are not as common as they once were.

What are the Benefits of Building with Rammed Earth?

Building with Rammed Earth is a sustainable and environmentally friendly way to build structures. This technique has plenty of benefits, such as being energy efficient and carbon neutral.

In addition to the environmental benefits, Rammed Earth is also an energy efficient building technique. It’s a carbon-neutral building method that can be used in both warm and cold climates.

Rammed earth houses have excellent sound insulation and are fire and pest resistant.

The benefits of using this material for building are numerous. It’s strong, durable, easily available and inexpensive. The only downside to using rammed earth is the amount of time it takes for construction to be completed.

What are the Drawbacks of Building with Rammed Earth?

Rammed earth is a type of building material that is made by compressing layers of soil, gravel, sand and clay into blocks.

The drawbacks of building with rammed earth are primarily related to the high water content in the soil. When it’s used to build with, it will have an adverse effect on the stability of the structure. It also has a low thermal mass which will cause it to heat up quickly and cool down quickly.

Why You Should Consider Building Your Next Home With Rammed Earth

Rammed earth is a type of construction that is made by packing soil, clay, sand and other materials into a formwork. It has been around for centuries, but it is making a comeback due to its sustainable and cost-effective nature.

Conclusion:

Building your next home with rammed earth will be the best decision you have ever made. It will not only save you money on construction costs but also leave behind a legacy for future generations to enjoy.

Tips for Pricing Your Rental

Investing in real estate is a great way to grow your wealth, but you have to make many decisions that can impact your finances. For example, not only do you have to buy property to rent, but you also have to deal with maintenance costs, contracts and leases, and figuring out how much to charge for rent. 

Pricing your rental correctly the first time can help you save money on marketing and prevent your property from staying vacant for too long. However, many landlords often price their rentals incorrectly, which can deter would-be renters from even applying. There are many things to consider before you set the price of rent. Here are tips for how to price your rental to help you reach more prospective tenants and fill your vacancy. 

Look at Comparable Properties

Whether you’re a landlord for a house or an apartment complex, you need to know how much similar properties in the area charge for rent to help you stay competitive. Focus only on rentals similar to yours. For example, there’s no reason for your rent to be equal to the rent of a house that offers more square footage. Instead, look for properties that are as similar as possible and in the same neighborhood. Features to consider include the number of beds and baths, types of homes, new construction, and rental upgrades. 

You can find comparables online or work with a realtor who can help you understand the different price points in the area if you’re unfamiliar with a certain city or neighborhood. Of course, you can also use sites that help people find rental properties like Zillow.

Amenities

Renters are willing to pay more for better amenities. Therefore, you shouldn’t price all of your units the same even if they have the same number of bedrooms unless they are exactly the same. Ultimately, the rent price should depend on the desirability of the unit. For example, someone in an apartment complex will be willing to pay more for a unit on the end because there are fewer neighbors and more windows. Therefore, even though their unit is exactly the same as the one in the middle of the building, they have different features they’re willing to pay for. 

You can typically charge more for a property based on its views. For example, properties with good views instead of a parking lot are typically worth more in the eyes of renters. Additionally, updated appliances, more space, and higher floors are more desirable, allowing you to charge more.

Profit

You invested in real estate to make a profit and grow your wealth. So while you must remain competitive, you should also make a return on your investment. Of course, you can’t expect to become cashflow positive quickly in real estate since it’s a long-term investment strategy. Of course, first, you’ll need to pay off the mortgage and deal with monthly bills associated with the business. 

However, eventually, if you price your units correctly, you can start making a profit. Remember that some landlords don’t start making a profit until they’ve had their properties for years or decide to sell them. Your goal should be to price the unit to at least cover your expenses. If you’re losing money on the property, you may have over-invested. 

Market Demand

While the prices on comparable properties will help you price your property correctly, you should also look at the market demand. If there’s more demand, you can increase your rent, but if there’s less demand, a higher price could leave you with a vacancy for longer. Ultimately, when the economy is bad, demand for rentals might increase because people are leaving their homes. However, a bad economy can also mean demand for cheaper apartments because people are downsizing. 

When there’s greater demand for a property or unit, you can charge higher for rent. However, you should reevaluate the demand every few months because it can shift dramatically throughout the year, especially depending on the economy. 

Pets

Allowing pets can help you stand out from the competition and help you get more tenants quickly because not all apartments or rentals allow pets. You can charge a non-refundable pet deposit fee and monthly pet rent when you allow pets. Many apartments don’t allow pets because they can damage carpets and walls. 

However, by charging a non-refundable pet deposit, you’ll ensure your unit is covered in case a pet destroyed something. Additionally, people are willing to pay more for an apartment that allows pets because they want to bring their dogs and cats to a new home. 

Increasing Rent 

The cost of rent increases every year, but prices fluctuate frequently. If you’re going to raise the rent, you should determine how much so that you won’t price yourself out of the market. Renters already living in rentals expect their rent to increase every time they sign a new year-long lease. 

However, you can keep your current tenants happy by reducing the amount you raise the rent. For example, a new tenant that just signed a lease should pay more than someone who has lived in the apartment for years because it’s easier and more affordable to keep existing tenants than find new ones. 

Location

We’ve already touched on amenities like beautiful views, but if your rental is in a great location, like Tampa, Florida, with grocery stores and entertainment nearby, your property will likely be worth more than one that requires someone to travel a greater distance. So even though you might not have the most scenic views and your renters may have to look at parking lots or streets, if you have a good location that can help tenants easily get where they need to go, you can typically charge more. 

Final Thoughts

The best thing you can do as a landlord is not price yourself out of the market. Even if your rental offers higher-end amenities and features, you might still be unable to charge as much as you want based on other factors like the economy and location. If you’re unsure how to price your rental, consider working with a local real estate agent who can help you understand all the different factors to consider while helping you compare your rental to the competition. 

Julia Olivas

Julia Olivas graduated from San Francisco State University with her B.A. in Communication Studies. She is a freelance writer where she loves sharing her passion for digital marketing and content creation. Outside of writing, she loves cooking, reading, making art, and her pup Ruby. 

Is Real Estate Investment Worth It

Most people dream of owning their own homes to forget about rising rent costs, start a family, or simply have more space. However, what many people don’t consider is that real estate is a valuable investment. Real estate is a great way to gain financial freedom; frankly, it always has been. Unfortunately, there are very few guarantees when investing, but overall, it’s a safer investment option than high-risk stocks. 

Experts agree that real estate investing is worth it. So whether you’re looking to build wealth or just want to make a return on your investment, here are just ways you can start investing in real estate. 

Homeownership

Homeownership isn’t just a way to get more space or a backyard for children and pets– it’s actually a real estate investment even though it might not feel like it. Real estate is the only type of investment you can use while you get a return on your investment, allowing you to live in the home with your family while building equity. 

Homeownership is one of the best investments you can make for financial security for the future. Not only are you saving money by not having to deal with rent prices that go up yearly, but you’re investing into your future. If you stay in the house for the rest of your life, you won’t have to worry about paying for expensive housing during retirement, and if you choose to sell your house before retirement, you’ll be able to increase your wealth. 

Developing wealth and equity is a long-term investment strategy, so your home will ultimately be an extension of your savings as you pay off your mortgage loan. Then, when you finally go to sell the house or pay it off, you’ll be in an even better financial position because you won’t have to pay the cost of housing.

Purchasing a house is the dream of many, and it’s an investment in real estate that doubles as an investment in yourself. Unfortunately, there are cons to being a homeowner, including high down payments. You should also be careful not to buy a house you might not be able to afford in the long run.

Rentals

When investing in real estate, you can invest in long-term or short-term rentals to start paying back the mortgage and earning money immediately. Of course, you could end up with horrible tenants, but if you properly background check them, you can set yourself up for success. If you can figure out a way to ensure your tenants can be trusted to properly take care of the rental, you can start making money quickly, even after all your operating expenses are paid. 

While you can’t expect much at first, it can help you pay for other bills, such as your home mortgage or any debts. Long-term rentals are also a good way to increase your retirement income. Ultimately, as tenants pay their rents and the mortgage is paid down, your passive income will slowly grow over time. Eventually, your mortgage will be completely paid off, so you’ll have a larger additional stream of money coming in on top of any other income you make. 

Of course, you can also choose short-term rentals, such as Airbnbs. Airbnb rentals can be a highly lucrative way to earn money. There are cons to short-term renting, though. Long-term rental tenants typically pay more of their own expenses and utilities, but short-term renters do not, which means you’ll be expected to pay all of the bills associated with the prosperity, such as utilities and trash collection. Additionally, you must market your property, which means keeping it in good condition before, after, and during a tenant’s stay. 

Flipping

If you watch television, you’ve probably already come across a reality show about house flippers that makes it look easy. There are many benefits to house flipping. You can generate money quickly if you can find ways to buy houses at a low price and sell them for much higher. Of course, flipping typically involves renovations, which can get expensive if you don’t hire the right company. Ensure you find a reputable contractor who you trust as they can get you the best field service contractors to help with your house flipping projects.

When flipping a house, there’s no guarantee you’ll make money. However, if you figure out a way to do everything right and get the house back on the market quickly, you can make tens of thousands of dollars a month. 

Trusts

Real estate investment trusts (REITs) are companies that finance real estate; they trade on major stock exchanges, and investing in them can benefit investors. With trusts, you don’t own any property, so there are virtually no overhead costs or repairs involved. Instead, you can break into the real estate investment industry by becoming a REIT stockholder, which many people already do through their retirement plans. 

Is Real Estate Investing Worth It?

Real estate investing has many benefits, including having a regular income that can help you pay your bills and any other mortgage. Additionally, you can get tax benefits if you turn your investment into a business by becoming a landlord. 

Real estate investments are well worth it if you can afford them. You’ll need to put down a substantial amount of money for every type of real estate investment on this list. For example, if you plan to purchase a house to either rent it out, live in it, or flip it, you’ll need to save enough for a down payment. If you don’t have the money to start investing, there’s no reason to purchase a house you can’t afford, even if you can get a mortgage company to give you a loan. Remember, real estate investing is all about building wealth, not putting your financial future at risk. 

If you don’t already have a house, you may choose to live in your house and let it build equity while you use it. Of course, there are pros and cons to each type of real estate investment, but if you’re willing to do the math and put in the work, you can make a significant amount of money. 

Julia Olivas

Julia Olivas graduated from San Francisco State University with her B.A. in Communication Studies. She is a contributing writer at 365businesstips.com where she loves sharing her passion for digital marketing and content creation. Outside of writing, she loves cooking, reading, making art, and her pup Ruby.

3D Printing and Homes: A New Era in Housing?

3D printing is an additive manufacturing process that can create complex shapes with the help of a computer. It uses a digital design to create an object layer by layer.

The benefits of 3D printed homes are many, they are environmentally sustainable, they can be created quickly and cheaply, and they can be made to order.

3D printing house is not a new concept in the world of architecture, but it’s becoming increasingly popular as the prices for 3d printers come down.

How to Print a House

3D printing is a process of making three dimensional solid objects from a digital model. It adds layer upon layer of material until the object is complete.

The first 3D printer was invented in 1983 by Chuck Hull, and since then it has seen many different applications and uses. 3D printing has come a long way from being just an industrial tool to now being used in our homes.

3D printers are becoming more affordable and available to the general public, so the process of printing houses is not as far away as we think it is. As a matter of fact, it has already started. Several homes were already printed. Usually they are printed in concrete, but also other more environmental friendly materials – like clay or dirt/earth – are very promising to become the next material of choice.

What is already be done on a small scale is scaled up now to print a real home.

The Future of the Housing Market

The future of housing is one of the most debated topics in the world. With a 3d printer and a blueprint, you can print your own house.

The idea of printing houses has been around for a while now, but it was always thought to be too expensive and not worth the investment. However, with 3d printing technology becoming more popular and affordable, it’s possible that this will be the future of housing.

Housing is a significant investment. That is why it is important to be able to know how the housing market will change in the future. The housing market is constantly changing and there are many factors that affect it.

The future of the housing market depends on many factors such as population growth, interest rates, employment rates, etc. The most important factor, however, is the availability of homes for sale.

Conclusion: Future of 3D printing Homes

3D printers are becoming more and more affordable, and it’s not a far-fetched idea to envision a future where we can print our own homes – because it is already here, 3D printed homes have been successfully “printed” in several countries around the globe.

The 3D printer, no doubt, is the future of housing. It is an affordable, sustainable, and efficient way to build homes for everyone in the world.

Mistakes to Avoid Making When Buying a Home

Buying a home is a complicated process. From pre-approval to shopping around and finalizing the deal, homebuyers have a lot to accomplish quickly if they want to snag the house they want off the market. Once you buy your first home, you’ll understand the buying process much easier. However, there are several common mistakes many first-time home buyers make. Here are the mistakes to avoid when buying a home.

Not Getting Pre-Approved

Mortgage pre-approvals are a huge first step when you want to buy a house, and they’re not something you should ever forget to do. Having your pre-approval in hand can improve the odds of your offer getting accepted because it tells sellers that you’ve been approved for a loan, ensuring a smoother selling process. 

Remember, the real estate market is incredibly competitive for buyers and sellers, so if you find a house you love, you’ll want to be able to compete with multiple offers by having your pre-approval in hand that states how much a bank or mortgage lender is willing to loan you for the house. 

Buying a House You Can’t Afford 

Mortgage lenders do their due diligence to ensure borrowers can afford a home. However, you shouldn’t let your mortgage lender predict how much you can truly afford. While they consider your income, debts, and credit history, they don’t have a full picture of your finances like you do. If something doesn’t feel right about buying a house that’s above your budget, don’t buy it. 

Buying a house is likely going to be the biggest purchase you’ll ever make, so there’s no reason to overspend if you know it will put you into financial hardship later in life. 

The good news is you don’t have to spend all of the money a lender is willing to loan you on the house. Instead, you can choose to find a more affordable house that requires a smaller loan, affording you the option of renovating the house or using the money you’ve saved on interior design.

Ignoring Location

Location is important in real estate for several reasons. First, homeowners should choose a location based on their needs and preferences. For example, you probably don’t want your commute to work to take longer than an hour, so you’ll need to shop for houses within a particular radius to ensure you’re not spending too much on gas or taking too much time away from your other priorities. 

Additionally, you should consider access to important places, such as schools, grocery stores, and maybe even shopping malls. If convenience is important and you don’t drive, you will also need to look into access to public transportation. On the other hand, if you own your own vehicle, you may want to look for a house with a garage or covered carport to prevent the need for auto detailing due to tree sap and bird droppings. 

Not Considering Other Costs

While the purchase of the home is the highest cost of homeownership, other costs are associated not only with the sale of the home but the maintenance of it as well. When moving to a new home, you might have to deal with additional expenses immediately to ensure your home is in proper working order. Common costs associated with home ownership include:

Using All Your Money for the Down Payment

It can be tempting to use your entire savings for the downpayment of a home to spend less money over the life of a loan. However, you should always ensure you have enough savings left over to cover your living expenses for at least three to six months. Not spending your entire savings may mean putting less money down on the house, but it ensures you can afford to live in the house and pay your bills in the immediate future and beyond. 

Not Working with a Real Estate Agent

Anyone can buy a house without help. However, working with a real estate agent can be a life-saver for a first-time home buyer. When buyers work with agents, they don’t have to pay anything since the commission on the sale of a house is split between the buyer’s and seller’s agents. Ultimately, there’s no reason not to work with an agent. Real estate agents can help guide you through the entire process, including helping you find the home of your dreams and negotiating purchase price on your behalf. They’ll even handle all of the paperwork for you, making buying a home less stressful for everyone. 

Waiting for Your Dream House

In a competitive real estate market, you have to move quickly to get the house that you want. If you’re not realistic about what you can afford based on your loan amount, you won’t ever find a quality house. No home is going to check every single one of your boxes, so it’s best to understand what your priorities are when shopping for a home. Waiting too long in hopes of finding your perfect home can result in a great house being sold before you even have the chance to put in an offer.

Moving Too Fast

While you don’t want to move too slowly in the homebuying process, you should also never rush your decisions. Buying your first home is exciting, but that doesn’t mean you should rush to purchase the first house you see. Instead, take time to find the property that’s right for you, and don’t settle for something just because it’s available and within your budget. 

Final Thoughts

As you can see, there are many mistakes to be made when buying a house. Luckily, working with a real estate agent can help you through the entire process, and it’s free for buyers. Hopefully, knowing these common mistakes can help prevent you from buying a home that’s out of your budget or spending too much on the down payment. Remember, never make decisions based on impulse; instead, do your research and find the best house for you and your family that’s within budget. 

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a contributing writer at 365businesstips.com where she shares knowledge about general business, marketing, lifestyle, or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music. 

7 Ways Renters Can Spruce Up Their Home

There are always rules when you’re a renter, including rules for getting approved to be a tenant in the first place. You’re expected to follow strict rules when renting from the credit check to the lease agreement and what you can do in the home. 

As a renter, it might feel like you have limited options for making your rental feel like home. However, renting doesn’t mean there aren’t any options for decorating. If you talk to your landlord, you can find out what types of cosmetic changes are acceptable and which are not. For example, some landlords will not allow you to paint your walls, while others will allow paint as long as you paint it back before you move out. Even if your landlord is strict about how you can decorate your home, there are still tons of things you can do to make it homier. Here are a few ways renters can spruce up their homes. 

1. Paint (If Allowed)

As we’ve mentioned, some landlords will not allow you to paint. However, many landlords understand that their renters will want to paint their walls to make their homes more unique. So if your landlord allows paint, you might just have to deal with painting it back to a white color before you move out. Painting your room is an affordable way to refreshen a space and you can have fun doing it!

If you’re unsure of your lease agreement’s stance on painting, you can always review it or call your landlord to understand the types of cosmetic changes you can make in your home. The good news is that there are options even when you can’t paint your walls. For example, you can use wall decals to make any boring white wall sparkle with personality. You can also invest in peel-and-stick wallpaper that will allow you to completely transform any and every room in your home. Then, when you’re done with the wallpaper, all you have to do is peel it off, and there will be no damage done to the walls. 

2. Spruce Up the Yard

If you’re renting a house or condo and have a yard all to yourself, you can make your rental feel more like home by sprucing up your yard. If you’re allowed, you can start a backyard garden. However, once again, check your lease agreement to understand what changes you can make to the yard. If you want to discuss different options with your landlord, feel free to do so. 

When trying to convince your landlord to let you change the yard in some way, always point out how it can improve the yard, such as adding flowers to the front of the house can add curb appeal. Landlords are more likely to say yes when you can show them how your changes can improve their bottom lines or increase the home’s value. 

3. Upgrade Hardware

Renters can easily upgrade kitchen and bathroom hardware and switch it back when they move out. Replace doorknobs, cabinet pulls, dresser knobs and anything else that you can to add a splash of your personality to any room. Upgrading hardware is affordable and can change the feel of any room. Be careful when changing hardware, though. You’ll need to ask your landlord permission to drill new holes. You can also choose not to replace any hardware with something that would require additional holes. 

4. Window Treatments

Most rentals come with standard, boring blinds that typically break if you try to clean them. However, you can upgrade your rental by changing out your window treatments and replacing boring blinds with curtains. 

Many landlords allow you to add curtains to your home, but be careful about color. Some lease agreements may state that your window treatments must be a certain color or have a certain color, such as white, pointing outward. Luckily, many curtains come with one color for the apartment and white facing outside of the apartment, so you can find a color you love to help spruce up your decor. 

If you need to install a rod to hang your curtains, you can purchase curtain rod brackets that require no drilling or hang your curtain rods with Command™ hooks that won’t damage your walls. 

5. Peel-and-Stick Flooring

We’ve already discussed peel-and-stick wallpaper, but you can also change up the appearance of your kitchen and bathroom floors with peel-and-stick flooring for any room that doesn’t have carpet. By changing the way your floor looks, you can make your bathroom and kitchen look more high-end without spending thousands of dollars on replacing the floors or asking for your landlord’s permission. When you’re done with the flooring, all you have to do is peel it off and replace it with something new to change how your kitchen or bathroom looks. 

6. Add Your Own Photos

You can get any photo on your phone enlarged and printed on a canvas to help add your personal touch to any rental. Whether you want to showcase how cute your pet is or put a large framed picture of your family in your hallway, you can make your home more personal to you even though you don’t own it. When putting your own photos on the walls, be careful not to drill any holes. Instead, you can use Command™ Strips attached to any photo frame and stick your favorite images on your wall. Don’t have any good photos to use? You can create your own art and get it printed!

7. Use Mirrors

Many rentals are smaller than we want them to be, but you can make your space feel bigger by adding mirrors. Mirrors are a cost-effective way to make any room feel larger. When deciding where to put your mirror, look for places that can bounce natural light off of them and reflect the outdoors. Depending on your preferences, you can use any shape of mirror you want, or you can choose a variety of different mirrors for one space. 

Final Thoughts

Being a renter means having fewer options when it comes to decorating your home, but that doesn’t mean you can’t add your own style to your apartment or rental house. There are many ways to transform a space, including the use of color, designs, and wall art to make your rental feel like your home.

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a contributing writer at 365businesstips.com where she shares knowledge about general business, marketing, lifestyle, or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.