Investments
Property Investment Tips
To create a strong investment portfolio it's best to consult your financial planner or banker first.
Investing in local Real Estate can be very rewarding. Whether you're looking to purchase rental property or vacation property, having a plan is your first step.
• Renting offers flexibility, predictable monthly expenses, and someone to handle repairs. Homeownership brings intangible benefits, such as a sense of stability and pride of ownership, along with the tangible ones of tax deductions and equity.
• If you and your family do not plan to stay where you are longer than 3 years, you would be better off renting for now according to most experts. If you are not sure, the pointer still leans toward renting. If you are committed to at least 3 to 5 years or more, it's probably in your interest to look into buying. Mar 2, 2023
Operating expenses on a new rental property will be between 35% and 80% of your gross operating income. If the monthly rent charged is $1,500 expenses are $600 per month, that's 40% for operating expenses. Many investors use the 50% rule. If the rent is $2,000 per month, expect to pay $1,000 in total expenses.
When buying a home, the question, “How much can I borrow?” should be the second question you ask. That’s because even with all the angst involved in applying for and being approved for a home loan, lenders are often inclined to loan you more money than you expect. That’s a surprising — and important — reality.
As much as you want to buy a home, lenders (likely) want to loan you money. And the bigger the loan, the happier they are. You’ll know why when you see the estimate of the interest you’ll pay over the life of the loan. It’s a really big number. But if you know how much home you can afford, of course, you’ll want to learn how much you can borrow.
Put simply, the 70 percent rule states that you shouldn't buy a distressed property for more than 70 percent of the home's after-repair value (ARV) — in other words, how much the house will likely sell for once fixed — minus the cost of repairs.
Today's average rate on a 15-year investment property loan is 6.55% compared to the 6.62% average rate a week earlier. The 52-week high for a 15-year investment property loan was 6.65% and the 52-week low was 6.00%. (9/6/2023)
Is a Fixed-Rate Mortgage or ARM Right for You?
When choosing a mortgage, you need to consider several factors, including your personal financial situation and broader economic conditions. Ask yourself the following questions:
- What amount of a mortgage payment can you afford today?
- Could you still afford an ARM if interest rates rise?
- How long do you intend to live in the property?
- What do you anticipate for future interest rate trends?
If you are considering an ARM, calculate the payments for different scenarios to ensure you can still afford them up to the maximum cap.
Judy was very proactive in finding listings and engaging with listing agents. She has an amazing understanding of the local area and selling trends in the area. Because of Judy we were able to find the perfect house for us and close exceptionally fast. She was able to recommend true professionals in all aspects of the purchasing process from Mortgage options to Building Inspectors. 5 stars!
Judy rocks south Oakland county! If you are thinking of purchasing or selling property in the south Oakland county area, Judy is the Agent for you. Her knowledge of life in the Ferndale, Royal Oak, Berkley, etc area comes from living it in addition to being involved in so, so many property sales over the years. Judy has a solution to any problem you encounter during the property transaction and she will provide a list of local people who she has vetted that can assist you. Every step of selling my home years ago to a recent home purchase was made easy because of Judy...she is the best
Judy has expert knowledge of the Ferndale and surrounding MI areas. I trusted her advice on what to list my house for. She and her team helped me through every part of the process. She knows a lot of the details that can make a listing successful and is really sharing with those tips. Her team is very responsive to questions and were really great at reminding me when I needed to do certain things to ensure a successful sell of my house! She's knowledgeable trustworthy and a great negotiator!
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