WATSON STEWART HOMES LLC can provide information on the following:
Foreclosures
What are foreclosures, and are they a good investment?
Foreclosures are homes that have been repossessed by lenders due to owners failing to pay their mortgages. Economic conditions can affect the number of foreclosures. Before considering a foreclosure investment, it is important to be cautious, have the house inspected, and ensure any liens, mortgages, or judgments are disclosed.
What are the types of foreclosures?
There are two types of foreclosures: judicial and non-judicial. Judicial foreclosure involves requesting a court-supervised sale of the property to cover the unpaid balance of a delinquent debt. Non-judicial foreclosure is the process of selling property under a power of sale in a mortgage or deed of trust that is in default.
How do I find foreclosed properties?
Foreclosure notices must be published in local newspapers and posted on the property itself and somewhere in the city where the sale will take place. When a homeowner is late on three payments, the bank records a notice of default, and a trustee sale is held. The financial institution that initiated foreclosure proceedings usually sets the bid price at the loan amount. HUD and VA also offer foreclosure properties that can be purchased directly from them.
Can I get financing for a foreclosure?
Financing for foreclosure properties is difficult to obtain, as it is almost impossible to get a loan. Generally, you need to show up with cash or a line of credit with your bank to draw cashier’s checks.
Fixer-Uppers
What are fixer-uppers, and is it smart to consider them?
Fixer-uppers are distressed properties found in any community that has been poorly maintained and have a lower market value than other houses in the area. Before investing in a fixer-upper, it is important to calculate the cost to bring the value up to its full potential and ensure it is within the rehab budget.
Is there a tax break for fixing up a historical house?
Qualified rehabilitated buildings and certified historic structures have a 20 percent investment tax credit for qualified rehabilitation expenses. The tax code does not allow deductions for the demolition or significant alteration of a historic structure.
Are there special loans for fixer-uppers?
The U.S. Department of Housing and Urban Development’s Section 203(K) loan program helps with major structural rehabilitation of houses with one to four units that are more than one year old. Two appraisals are required, and mortgage proceeds are advanced periodically during the rehabilitation period to finance construction costs.
What are building codes?
Building codes set minimum public-safety standards for building design, construction, quality, use, occupancy, location, and maintenance. They cover most remodeling projects and are enforced by denying permits, and occupancy certificates and imposing fines.
How do I find a good contractor?
Hiring contractors recommended by friends is usually safe, but it is important to check their licenses and the Better Business Bureau for complaints. Verify their worker’s compensation and general liability insurance, check their references, and never pay a deposit at the first meeting.
Is remodeling worth the price and time?
Remodeling a home improves its livability and its “curb appeal” with a potential buyer down the road. Remodeling magazine’s “Cost vs. Value Report” shows that updating kitchens and baths, home-office additions, and extra amenities in older homes have the highest remodeling paybacks.
How do I look for fixer-uppers?
The basic strategy for finding a fixer-upper is to find the least desirable house in the most desirable neighborhood and then determine if the expenses to bring its value up to its full potential market value are within the rehab budget. Cosmetic fixers can be refurbished with paint, wallpaper, new floor, and windows.
Condos, Apartments, and Single-Family
Condos vs. Single-Family Homes
According to experts, condominiums have been as profitable an investment as single-family homes, and in some markets, they appreciated even more, using appreciation as a measure. Although single-family homes have been the preferred investment, changing demographics are making condos more popular, particularly among single homebuyers, empty nesters, and first-time buyers in high-priced markets. In addition, the condominium community has worked hard in recent years to overcome image problems brought on by disputes, lawsuits, and construction-defect litigation.
Buying a Condo
Condos have held its value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in recent years than when they first came on the scene in the late 1970s and early 1980s, say experts. While there are reports about homeowner’s association disputes and construction-defect problems, the industry has worked hard to turn its image around. Associations are becoming more sophisticated about property management and taking steps to prevent legal problems and disputes. Changing demographics are making condominiums more attractive investments for single homebuyers, empty nesters, and first-time buyers in expensive markets. As with any home purchase, it is important to do your homework about the neighborhood or development before you buy.
Homeowners Associations
It is crucial to learn everything about the homeowners association before you buy into a development governed by one. When run properly, homeowners associations maintain the common grounds and keep civility in the complex. To avoid issues with the association board, study the association’s covenants, codes, and restrictions (CC&Rs) to determine if you can abide by them. You should also find out about the association’s finances by reviewing the budget, talking to the association treasurer, and understanding if dues are expected to increase or if special assessments are planned. Additionally, it is essential to meet with the association president and speak with residents to learn their views on the association’s finances, property manager, how it operates, and any politics.
Projecting Rents on Rentals
If you are buying a rental income property and applying for a loan to do so, the lender will require an area rent survey by a certified appraiser. The amount a landlord can expect to receive in monthly rent depends on the property’s past rental history, the condition of the building, its location, and the current housing market. Lenders also consider other cash-flow considerations, such as whether you have enough reserves on hand to cover predictable and unforeseen expenses, including property insurance, taxes, regular maintenance, and repairs.
Vacation Homes
Are vacation homes a good investment?
You can purchase a vacation home today for investment purposes as well as enjoyment. There are tax benefits to owning a vacation home, including that the interest and property taxes are tax-deductible. Some people buy a vacation home to use as a permanent retirement home later, allowing them to get ahead on their payments. According to some real estate experts, vacation homes will appreciate in value due to rising demand from the aging Baby Boom generation. You can also depreciate the property if you live in the house less than 14 days a year. It is important to consider whether you can afford to carry two mortgages, pay for the extra utilities and maintenance costs, and how this investment fits into your total personal finance picture.
Contact Us
Contact us now to experience exceptional real estate services.