Posts Tagged ‘real estate’

How to avoid your house from being foreclosed, repossessed by the Bank

Wednesday, March 5th, 2008

1. Always be in touch with the bank

The bank rather seeing you keeping your house than they do. They are in the business of loaning money, not possessing properties. If you are in difficulties making your monthly mortgage payment, talk to them, and work out something with them.

2. Always have the special arrangement in writing.

This is only good if the authorized personnel at the bank would give you this promise in writing. Verbal statement means nothing.

3. A longer pay-back period is better than loosing your home.

To spread out a longer pay-back period can ease the pain of present high monthly payment. This is good as a tool to temporarily cure the money crisis

4. Do NOT feel ashamed !

Financial crises happen to everybody. What is the big deal ? Be brave, and deal with it logically. Be positive, and deal with it with confidence.

5. Get help from the government

The United States Federal Housing Administration (FHA) gives you the latest information on what the government can help.

Go to: http://www.hud.gov/offices/hsg/fhahistory.cfm

6. Get help from people you can trust.

They could be your family members, or friends, as long as you feel comfortable talking to them about your situation.

7. Use valuable items to ask for better terms with the Bank.

They could be jewelry or antique that you have. If the bank is not interested in them, how about use them as security to borrow money from people you know ?

8. Priests used to be rich, now they pay rent. What is the big deal?

So many priests I know used to be medical doctors with big houses. They chose to become priests, and donate most of their assets to the church. They can survive, so can you !

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Frequently Ask Real Estate Questions

Sunday, January 6th, 2008

Frequently Asked Questions (FAQ) in Real Estate

  1. Why should I buy a home and invest in real estate ?

    2. Because in a stable political and economic country, real estate is always the best investment in one’s life in the long run, in addition to the comfort of living in your own house.

  2. Why should I buy properties as investments ?

    3. Again, it is like owning blue chips stocks, in he long run, investment and commercial properties give a secure good return.

  3. Should I not use the money to buy stock rather than properties ? I get my money back much quicker ?

    4. This is why real estate is usually a long-term investment. Quicker return also means higher risk.

  4. Do I pay capital gain tax on the house (property) I live in if I make a profit when selling ?

    5. In the United States, you do.
    In Canada, you do NOT.

  5. Does it mean that I am better off in Canada when it comes to selling my house ?

    6. Not necessarily. In the United States you can deduct the mortgage interest from your income tax in Canada you CANNOT deduct the mortgage interest.

  6. I am a first time home buyer. Is there any program that might benefit me ?

    7. Yes. Depends on whether you live in the United States, or in Canada. And also it depends on which state or province you are in, there are government incentives to help first time home buyers. Check with the realtor that you are working with. Or look under Government Regulatory Agencies in this website.

  7. What is a good area (neighborhood) to move to ?

    8. A good area usually costs more. It certainly depends on what price range you can afford. However, understand from the realtor you work with, look for good value property (area). Future government zoning change nearby might give a neighborhood great appreciation in the near future, ie. Government newly-approved mall nearby, or new freeway (highway) planned.

  8. How do I know if a neighborhood is good or bad ?

    9. Speak to your insurance agent, drive the neighborhood. Go to a local police station and find out. Ask them the crime rate statistics to compare with other neighborhood.

  9. Education is important to me as a parent. How do I know if the school in the area is good ?

    10. Look under school boards and other similar organizations from the internet or library. See how that school and teachers were ranked. See if any awards were won in the past.

  10. Should I pay down my mortgage when I have extra money ?
      1. If you live in the United States, it might not be a good idea, because mortgage interest is deductible from annual income. That means you pay less income tax for the year and you could earn more by investing your money elsewhere.
      2. If you live in Canada, mortgage interest is NOT tax deductible So, you should use the extra money to pay down your mortgage principle.

    11. 2. It depends on where you live.

  11. Between stocks and properties, which one has higher risk ?

The value of stock can go down to zero. Residential properties especially your own home will appreciate. In a slow market it may take longer to achieve any kind of appreciation. The amount of loss or appreciation will depend on when you purchased the property and if you paid fair market value or not. This is where the expertise of a professional realtor would come in handy to provide you with expert advise.

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