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  • Archives for May 2019

    Advantages of Sub-sale Properties

    The main advantage of a sub-sale property is that a client wouldn’t have to wait for so long. As long as your loan has been approved, which probably takes around 3 – 4 months after that you can get your house key.

    This is a critical factor for wedding couples who’d are in need of moving in as soon as possible.

    Another benefit is since the property has already has been established, you would’ve already been familiar with the surrounding, for instance, if schools or shopping malls are nearby then basically you can approximately guess the value of that area.

    Another benefit would be the after purchase cost, most sub-sale or second hand already come wired for electricity and chances are they are probably renovated too which brings the price even more low.

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    Our 5 Step Guide To Saving For A House Fast

    Are you thinking of buying a home? Ideally, you will have at least a 20% down payment. Here are some ways to save for a house fast.

    For many of us, owning our own home is still part of the American dream. Once upon a time, banks were handing out mortgages to anyone with a pulse. After the 2007 crash, that all changed. If you want to buy a home, you’ll need a down payment. We’re going to save for a house fast!

    Step 1: Know Your Budget

    Be Realistic

    It’s seductive when you start seeing those numbers in mortgage calculators. If you bought a house, the monthly payment would be less than your rent! But that low number is deceiving, there are lots of hidden expenses during the home buying process, not to mention those expenses a homeowner has that a renter doesn’t.

    When you buy a home you will pay a loan origination fee, the real estate agent’s fee, if you worked with one, you’ll be required to buy various types of insurance, closing costs. Once the house is yours, you’ll need to pay moving expenses, possibly buy additional furnishings, lawn care equipment, the home might need some renovations. It all adds up.

    Use Percentages

    It’s cleaner and easier to understand percentages than dollar amounts when you’re calculating how much house you can afford. There are a few easy rules of thumb we can use to figure it out.

    Your monthly mortgage payment should not exceed 28% of your gross monthly income (the amount you earn before taxes are taken out).

    Your total housing payments, which includes the mortgage and things like, homeowner’s insurance, private mortgage insurance, common fees (if you’re in a condo), and property taxes, should not exceed 32% of your gross monthly income.

    Lastly, your total debt, housing, loans, credit card balances, should not exceed 40% of your gross monthly income.

    Step 2: Decide What Kind Of House

    A Single Family House

    If you have visions of white picket fences and weekends spent gardening, this is the choice for you. This will probably be the choice with the most additional expenses, though.

    A Multi-Family Home

    A single family home is not necessarily an investment. But a multi-family home is. You live in one unit and rent out the others as a source of passive income. You may even be able to rent at a rate that pays the entire mortgage so you are essentially living in your home mortgage free.

    Even if you live in the apartment next to your renters, you don’t have to be a hands-on landlord if you don’t have the time or inclination. You can hire a property management company to handle all aspects of being a landlord.

    A Condo

    If you aren’t the D-I-Y type when it comes to things like clogged drains and yard work, a condo might be just the home for you. Just like any other type of home, though, there are costs other than the mortgage. In a condo, you will have things like common fees and assessments.

    Fixer Upper

    If you are the D-I-Y type, you can get a good bargain on a fixer-upper. If you can find a place that doesn’t need a complete overhaul, even better. You can live in the house and work on it as time and money allow.

    Step 3: Your Down Payment

    How Much Will You Put Down?

    At least, twenty percent of the purchase price is ideal. If you have that much cash, you’re more likely to be approved for a mortgage, you’ll get a lower interest rate, have more equity in your home from the start, and have a lower monthly mortgage payment.

    First Time Home Buyer Programs

    You can buy a home with less than a 20% down payment, even with no down payment under some first time home buyer programs.

    If you can’t save up the 20% down payment or if you have a low credit score, you may still be able to get a mortgage through one of these programs. If your credit score is above 580, you can qualify for the 3.5% rate. You can even get a loan with a credit score of 500 but will be required to put 10% down.

    Of course, nothing is as good as it seems and there are some extra expenses if you take out a low down payment mortgage. You will be required to have mortgage insurance, known as MIP, mortgage insurance premium. A conventional mortgage requires insurance, PMI, or private mortgage insurance but there are ways to avoid it.

    Step 4: Earn More Money

    Use Your KWSP

    You can take money from your KWSP without the 10% early withdrawal penalty when you use the money for a home. If you have a traditional KWSP, you can up to RM20,000 with no penalty but you will still be required to pay taxes on the amount. If you have a KWSP that is at least five years old, you can use it to fund a home purchase without tax or early withdrawal penalties.

    Change Jobs

    Sure you can ask for a raise but even if you get one, it will probably only be a few percentage points. The average raise in 2014 was a measly 3%. If you want to earn more money, you need to change jobs. If you stay in a job longer than two years, you will make an average of 50% less over your lifetime than if you had job hopped.

    Tighten up your resume and start looking around. Not just until you have your down payment, though, you should always be on the lookout for a better-paying opportunity.

    Work A Second Job

    This is good advice whether you’re saving for a down payment, trying to pay off debt, or looking to retire early. It doesn’t have to be forever, even picking up an evening, weekend retail job around the holidays for a few weeks will help you build up your down payment money.

    Start A Side Hustle

    If you have an irregular schedule at your day job, starting a side hustle will give you more flexibility. People tend to think of side hustles as online projects and they can be, but it’s faster and easier to make money in the regular world.

    Start driving for Grab. Start a babysitting service. Give music lessons. A side hustle doesn’t have to be something really formal, just a way to make some extra money in your spare time.

    Sell Your Stuff

    You have too much. You don’t want all that old stuff cluttering up your new home do you? And the less stuff you have, the less stuff you have to pay movers to take to your new place. Sell your stuff!

    Step 5: Save More Money

    Taxes

    There is a tax credit called the saver’s credit for low to moderate income taxpayers who save for retirement.

    Some low to moderate wage workers may also be eligible for the Earned Income Tax Credit. If you do, it can reduce the amount of taxes you owe and may give you a tax refund.

    Student Loans

    It’s important to pay off debt but some student loans have pretty low-interest rates so if saving for a home is a big priority for you, it’s worth looking into ways to lower your student loan payments.

    If you have a federal loan, you may be eligible for the income-based repayment program. Your monthly payment is based on your income and family size. You may have been eligible for some time but weren’t saving for a big savings goal like a home so were not taking advantage of the program.

    You may also be able to defer your payment entirely for a certain amount of time. Keep in mind, that you will likely end up paying more interest if you take advantage of one of these programs so decide what your priority is, saving for a home or killing of these loans.

    Lower Big Expenses

    Yes, you can cut down on your coffee habit and we’ll cover that, but that is not going to have nearly as much impact as cutting down on the big-ticket expenses.

    Housing is the biggest expense for most of us. There are a few ways you can cut this. No one likes to downgrade to a smaller place or one in a less desirable neighborhood but think about why you’re doing it.

    If you can just suck it up and live in a studio for a year or live in a place not surrounded by great bars, restaurants, and fun things to do (also saving you money), you will save so much. And when you’ve saved all that money, you will be able to live in a whole house! You can celebrate by turning cartwheels in all that open space.

    The only thing I would caution against if you’re thinking of doing this, is not to move so far away from work in order to save money that your commute becomes more expensive and more unbearable. Remember, money isn’t everything and a two-hour daily commute is no way to live, no matter how much it saves you.

    You can also rent out part of your current place. Get a roommate or even just rent the whole place or a room out via Airbnb.

    Transportation

    I know in some places you must have a car due to the lack of public transit. If you live in such a place, you get a pass on getting rid of the car entirely. But do you have to drive everywhere?

    Make a list of every car trip you took for a week. Now look at the list. Surely there are a few trips you could cut, either by walking or biking or just be more strategic and planning your day so you can combine errands into fewer trips.

    If you do live in a place with public transit, seriously consider getting rid of the car. Why do you even have one in the first place? Convenience, laziness? Not good enough if you really want to save for a house fast.

    Lower Contributions

    It’s important to save for retirement and if you’re getting matching, continue contributing the amount you need to sustain that because it’s free money. But if you’re still decades from retirement, consider lowering your contribution until you have your down payment saved.

    Live On One Income

    This only usually comes up after a child and one parent decides to stay home with the baby. Lots of people make one income work in this case. Why can’t you do the same? Of course, one partner won’t quit their job. The two of you will just figure out how to live in one income while putting the rest in a savings account.

    Lower Small Expenses

    No, this won’t have the same impact that moving to a cheaper place will have, but every dollar counts. I won’t belabor this because we all know where you waste money, buying coffee, buying lunch and going out for dinner

    These things all add up and if you’re serious about buying a home, you’ll give them up.

    Your Big Savings Goal

    Saving up tens of thousands of dollars can seem overwhelming when you’re starting from near zero but people do it. It’s not only rich people buying houses, not yet anyway. Be realistic about what you can afford and you can start picking out paint colors sooner than you think you just need a savings plan.

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    First Time Buyer? What You Need To Know Before Buying a House

    Many people dream of buying a house for years—or even decades—before they actually begin the process. You may have considered how many bedrooms you want, what your neighborhood should be like, and what lawn gnome you’ll have in your front garden.

    However, there’s more to a home purchase than picking your favorite listing and moving in. It’s important to understand all the steps of buying a house, as well as what to look for when buying, what questions to ask, understand the hidden costs, and how to close on it.

    There’s no doubt in the positive power of buying real estate if done properly. As the famous Will Rogers eloquently put it:

    “Don’t wait to buy real estate, buy real estate and wait.”

    But you don’t want to make any hasty decisions when buying a house, especially your first one. So let’s walk through the process with you to help get you into your dream home, responsibly.

    Steps to buying a house

    Before you can close on your dream home, you must understand the steps to buying a house. Navigating the home-buying process can be challenging, but it becomes much easier if you have a plan and a clear path forward.

    Here are the critical steps you must take as you’re considering this major life step.

    1. Take stock of your personal finances

    You won’t be able to buy a home until you know what you can afford based on your personal finances. Be sure to keep track of your credit score and try to improve it as much as you can.

    The better your score is, the easier it will be for you to get approved for a loan. You should also determine how much you have saved up for a down payment. Generally, home buyers are expected to put up between 5 and 20 percent of the price of a property as a down payment.

    2. Research the local market

    Long before you actually put an offer on a home, you should be monitoring the condition of the market in the area where you will be buying. Pay special attention to the length of time that most homes in your price range stay on the market and if there are any big shifts in the asking price.

    Partnering with any local realtor can help you understand these key data points.

    3. Go through the pre-approval process

    You might be able to guess what your house budget is based on your finances and credit score, but speaking with a lender will help you determine a specific number. In order to get pre-approved for a mortgage, you will have to provide your lender with some financial information, including your debts and assets.

    4. List your priorities

    Once you know how much house you can actually afford, you can actually begin your search for a home among listings in your area of choice. Although you probably won’t be able to find a listing that fulfills every item on your wishlist, like that indoor pool. It’s a good idea to keep your priorities top of mind to ensure you know what to look for when buying a house. So write them down, and make sure to revisit them as you begin looking at homes.

    5. Find an agent

    With your list of priorities and your pre-approval information in hand, speak to a real estate agent who can help you find a home. An agent can facilitate negotiations between buyers and sellers and show you properties that fit your budget and meet your needs.

    6. Make an offer and negotiate

    With the help of your real estate agent, you will determine a fair price to offer the owners of a home in which you are interested. Try to avoid making a low-ball offer. Often, owners who receive an offer that is obviously too low simply refuse it upfront and don’t engage in any further negotiations.

    You should always defer to the opinion of your agent, as he or she will know a lot more about the housing market and the rules that apply to home offers.

    7. Handle inspections and secure a loan

    Home inspections are a necessary part of the home buying process. Don’t skip this. It’s important to have the house you are purchasing professionally inspected to ensure you are aware of any damage or signs of structural wear.

    An inspection will confirm whether the homeowners were honest in their listing and reveal any issues that might have gone unnoticed. After the inspection and the appraisal of the property, you can secure your loan with a bank or lender.

    8. Submit paperwork and close

    You will work with your lender and your real estate agent to ensure that all of the relevant paperwork for your purchase is in order. You will be able to move into your new home as soon as all of the paperwork has been completed and the seller of the house has been paid.

    What to look for when buying a house

    When you begin touring homes with your real estate agent, you may be focused on the size of the yard or the square footage of the kitchen, but there are other attributes to a home that are even more important to consider.

    You’ll want to be certain that you are making a good investment when you purchase a home, so you should avoid those with major problems or that will need costly repairs shortly after you make your purchase.

    You should know which things to look for when buying a house to ensure that you are making a good investment. Here are a few items you and your home inspector must watch for:

    1. Roof condition

    A traditional shingle roof will have to be replaced every 20 to 25 years—and a full professional replacement may cost RM8,000 or more. This is a significant expense, and not one you want to be stuck with right after purchasing your new home. Pay attention to the condition of the roof when you tour a home, and be sure to ask about its age.

    2. Signs of foundational damage

    Some small problems, like faded paint or a broken light fixture, can usually be remedied without too much effort and money, but if the foundation of a home is damaged, you are looking at thousands of dollars in repairs. Look for signs of cracking near the foundation inside and outside the home and pay attention to the grade of the floors for signs of unevenness, which may indicate a sinking of the foundation.

    3. Potential for flooding

    You might fall in love with a home you tour because of how close it is to a body of water, but make sure you consider the potential risks of this proximity. The closer you are to water, the more likely it is that you will experience problems with flooding—especially during stormy times of the year. It is also important you have insurance coverage for such a possibility, so be sure to do your research.

    4. Mold, weathering and water damage

    Take a peek inside the cabinetry for signs of mold growth around pipes. Mold growth may indicate a leaky plumbing system, previous flooding or improper ventilation. You should also look for other signs of water damage and excessive weathering, such as musty odors or peeling paint.

    5. Insulation and energy efficiency

    Make sure you are aware of the condition of the insulation in a home, especially if it was built several decades ago. The better the insulation of a house is, the less you will have to spend on utility costs when it comes to heating and cooling throughout the year.

    Pitfalls: Hidden costs of buying a home

    You may be prepared to take on monthly mortgage payments, interest rates, and the upfront down payment you will have to pay on a home, but there are some hidden costs of buying a home of which you might not be aware.

    Even before you move into your new home, you will have to pay fees for your mortgage loan, a house inspection and closing costs. For a general inspection, you may pay several hundred dollars—and this figure can climb to more than RM1,000 if you get additional inspections for issues like insect infestations.

    You will have to pay a loan origination fee to your lender to cover the cost and work involved in preparing your mortgage loan. You can expect this fee to be between .5 and 1 percent of the total value of your home.

    This might not seem like much, but it can really add up—especially if you are purchasing a more expensive home. For example, you may pay upwards of RM4,000 as a loan origination fee if you purchase a RM400,000 home.

    Working with a real estate agent incurs an additional cost. Even though you likely won’t pay anything to the agent you work with, that person will earn a commission when the house is sold.

    This means you are paying the agent a fee that gets absorbed into the cost of the home. There’s a reason many home-buyers offer a discount to those who don’t work with a real estate agent.

    Closing costs may be between 2 and 5 percent of the value of your home, so be ready for a fairly significant expense once your offer has been accepted and your loan has been approved.

    In the long term, you will be paying several ongoing expenses as a homeowner that you don’t have to pay as a renter.

    Home insurance costs about RM1,000 a year, while utilities typically run about RM3,000 annually. In addition, you will have to pay for any ongoing maintenance, repairs and renovations, unless you are planning on purchasing a condo. These costs may add up to several thousand dollars a year.

    If you do move into a condo, you will have to pay monthly maintenance fees of between RM200 and RM500 a month, depending on the community.

    Questions to ask when buying a house

    Below are several key questions you should ask when buying a house:

    1. Are there any ongoing maintenance issues?

    Eventually, you will pick up on all the little idiosyncrasies of your new home, but you should find out as much as you can from the current owners before you decide to buy. If the water heater has a tendency to stop working or the kitchen sink has a slow leak, you’ll want to know about it before you close on a home. You should factor in these maintenance issues when making your buying decision.

    2. How much do utilities cost on average?

    The monthly cost of utilities for a given home is largely dependent on the efficiency of the appliances, fixtures and features that are built in. This will give you an idea of what you will have to budget for utilities and whether you need to upgrade the insulation or appliances to be more energy efficient.

    3. What’s the neighborhood like?

    When you tour a home, check out the neighborhood as well. Look at the other houses on the block and take a peek at the average listing price of comparable homes in the area. Find out whether there are any resources or amenities within walking distance, like parks and grocery stores, and do some research on the local schools (especially if you have or plan on having children).

    4. Is the insulation in good shape?

    The insulation in a home is responsible for keeping the cold out in the winter and the heat out during the summer. Insulation that is old or ineffective may contribute to an uncomfortable climate in your home—not to mention exorbitant energy usage.

    5. Are there any upcoming replacement needs?

    If there are any appliances or features nearing the end of their lifespan, it is important to consider the cost of replacement. You should ask about any upcoming replacement needs and keep an eye out for signs that something might need to be replaced in case they haven’t been disclosed.

    How to close on the house of your dreams

    Closing on your home is a big deal, and it’s important that you are prepared for this last step of the buying process. Because of how important closing is, the process can be lengthy. As a general rule, you should make sure you have at least two hours set aside for closing—although it can take longer.

    You will need to have official identification, a certified check for your down payment and closing costs, a sales contract, and proof of insurance for your new home.

    At the closing meeting, there will be several key individuals in attendance. There will be an attorney to represent the lender and you might have a personal attorney there, too. What, you thought you could do this without a lawyer?

    The home seller will be at the meeting, along with his or her real estate agent and a representative to verify written ownership of the property. The lender and closing agent will also need to attend the closing meeting. The closing agent is responsible for ensuring that all the paperwork is signed and in order and verifies that payment has been received in full.

    Once you have signed all the documents, paid all of the necessary fees and officially closed your house purchase, you can move into your brand-new home.

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    Is Buying a House a Good Investment?

    Home buying is just one of the things you have to check off the list in order to be considered a grown up. But is home ownership all that it’s been sold to us as?

    The millennial generation came of age under the shadow of the housing bust in 2008, and while the housing market has since recovered, many millennials remain unable or unwilling to ditch renting in favor of homeownership.
    For millennials ages 25 to 34, homeownership is 8 percentage points lower than baby boomers at that age and 8.4 points lower than Generation X.

    There are a variety of reasons millenials aren’t becoming home buyers and the fact that they’re saddled with tens of thousands of dollars in student loan debt is just one of them. But buying a home has long been considered a good investment. But is it?

    We can all agree that a good investment is something that makes money for you. Does a house do that? Hopefully, one day. But between now and one day, your dream home is going to cost you money. So is buying a house a good investment? It can be when the house you buy is a rental property.

    You’re Ready to Adult

    You finally paid off all of your high-interest credit card debt, you refinanced your remaining student loan debt to a better interest rate. You have an emergency fund and an opportunity fund. Your credit score is over 760 (the score you need to get the best interest rate on a home loan). Your debt-to-income ratio is under 36%.

    You believe you are ready to go forward with buying a house, the largest purchase you will probably ever make. You need a place to live and you are tired of “throwing your money away” each month on rent. Your home purchase will make a great investment, right?

    That depends. Do you want a home or do you want an investment? Do you seek security or freedom?
    There are a lot of articles explaining the trade-offs between renting and buying but this article is not one of those. This is for the person who wants to invest in real estate but doesn’t know if a home should be where you live, a rental property, or if it can be both.

    A Good Investment

    A good investment is something that will pay you more than you paid for it.One of the most well known personal finance authors is Robert Kiyosaki. Kiyosaki’s teachings and seminars have generated controversy but I think his definitions of assets and liabilities in Rich Dad, Poor Dad are excellent and very simple to understand.

    An asset is anything that puts money into your pocket. A liability is anything that takes money out of your pocket.

    So is a home a good investment? Does your personal residence put money into your pocket or take money out of your pocket? Every month you have to pay the mortgage, insurance, property taxes. Even if the house is paid off you are still spending money maintaining the house and paying your taxes and insurance. The house is still taking money out of your pocket.

    Your paid-off house might make your net worth look good but the equity is locked up in the home. So if you actually need to access that money, you either need to refinance, or sell the house and then you are back to having mortgage debt or looking for a place to live.

    But what about home value appreciation — does that make your primary residence an asset? It can if the purchase is timed just right, but most times it is not.

    Let’s Do The Math

    Imagine you financed your RM100,000 home 30 years ago at a low 5% interest rate and today your home got appraised at RM300,000!

    Wow, you got a total return of 200%! What a great investment, right? To answer, we must look beyond just the mortgage payment.

    Over 30 years you paid RM92,422.95 in interest to the bank. Add in RM2,000 a year for 30 years for taxes and insurance. This is a total price of RM252,422.95 so far.

    What about ongoing maintenance and repairs? A popular rule of thumb states you will average 1% of the purchase price in ongoing maintenance and repairs, so now we need to add in RM1,000 for each year. That brings the grand total investment to RM282,422.95. We didn’t even account for inflation which averages 3-4% a year.

    The 200% total return, or 3.7% annual return, is now looking more like a 0% forced savings account.  When you eventually sell the house you will get a nice big check but don’t confuse it with an investment, you are just getting money out that you put in over the years.

    An Investment Property

    So how is purchasing an investment property different? It’s not. There are still expenses that must be paid – the difference is you are not the one making the payments. Your tenant makes those payments.

    On our RM100,000 home example, you put down RM20,000, and then for the next 30 years, the tenant’s rent check covered the mortgage monthly payment, taxes, insurance, repairs, and upgrades. You increased your rent to stay ahead of inflation and property tax increases each year.

    Your RM300,000 home is now a 1,400% return or 9.4% annual return based on the RM20,000 you paid towards the house. Estimating a very conservative RM100 per month cash flow over 30 years is an additional RM36,000 into your pocket.

    Assuming you invested in a good cash flowing home, your tenant gives you more each month than what it takes to own the home. You are leveraging someone else’s time and money and now that same home is an asset.

    But…Where Will I Live?

    But you still need to live somewhere! Take a look at your life and ask yourself: are you are going to be living in this same area five or ten years from now?

    Members of the millennial generation move around more than their parents did and certainly much more than their grandparents. The world is evolving into a more global society and many people do not want to feel locked down to one area.

    Sometimes it just makes sense to live in a rental. Maybe you could buy your dream home for RM300,000 or rent it for RM2,000 a month. You could afford the rent, but you can’t manage to save up the RM60,000 needed for the down payment and the other RM15,000 for closing costs.

    In that case, you can still live in your dream home, just as a renter. Or if you know you will only live in the area for a few years it doesn’t make sense to spend so much time going through the home-buying process and so much money on closing costs and commission to your real estate agent.

    To Buy or Not to Buy

    I realize it sounds like I’m totally against home ownership but that’s not true. Not every financial decision has to be based on what is best financially. Owning a home has plenty of intangible benefits. Pride of ownership, the freedom to customize with renovations, putting down roots for your family.

    Those are all valid reasons to own a home. Homes can be a great purchase;just don’t tell yourself that your home is an investment. Math, specifically the opportunity cost of your down payment, says to invest in a rental property. Not your personal residence every time.

    Some personal finance gurus like Dave Ramsey advise you to buy your personal residence and pay it off as fast as you can. In fact, Ramsey wants you to get a 15-year mortgage, live below your means, pay off all your debt.

    Paying down your mortgage might preserve wealth but it will not create wealth. It appeals to a need for security and the satisfaction of being debt free.

    People say home-ownership is an excellent path to build wealth. I would change that to say rental property ownership is an excellent path to build wealth.

    Ramsey has valid points though. If you have extra money each month and are trying to decide between paying off your mortgage and buying a new expensive car, please pay your mortgage.

    But if the decision is between paying off your mortgage and investing your money in the stock market or in a new investment property, I would disagree with Ramsey and tell you to invest first.

    Retirement Income

    No one can retire on paying off a mortgage alone — you need to create monthly retirement income to replace your current job income. Try not paying your property taxes and see who really owns your paid off house.

    Retirement income might come from investments like dividends, KWSP withdrawals or rental properties. But if you’re planning on retiring early, you need to create income streams now since there could be a large gap between retirement and when you start withdrawing from your traditional KWSP and 401k (age 59 ½) or collect Social Security (age 65).

    Once you create enough passive income streams, you can travel, work, or fish all day while money comes to you. Your tenants are working to pay your bills for you.

    Have Your Cake and Eat It Too

    If you still can’t decide between buying a personal property or an investment property, there are three ways you might get the best of both worlds. You have all the intangibles of home-ownership with all the financial benefits of owning a rental property, either immediately or down the line.

    Since all three options involve initially living in the home, the interest rate on the mortgage will be lower than the interest rate you would get on an investment property.

    First Option – Buy your new home, live in it for a few years and then when you move out, you rent it and buy your next new home.

    Second Option – Buy your first home and rent out the extra rooms to your friends so that they cover all your monthly expenses.

    Third Option – Buy a small multi-family property (Duplex or Triplex), live in one unit while renting out the other units. If you want to read more about purchasing a multi-family property I recommend reading “Real Estate in your Twenties”

    All of these options are great ways to both put a roof over your head and diversify your investments into real estate. First-time home buyers will also learn invaluable lessons about home maintenance and being a landlord that you can use for your next home purchase.

    Is Buying a House a Good Investment?

    There is no right answer for everybody. You need to look at your reasons for buying or renting a home against your short and long-term financial goals. Then you can decide what is right for you and your family.

    I am choosing freedom. The freedom to live wherever I want, to do whatever activities I want while the income streams I build up over my working years support all of my expenses in early retirement.

    But we want to show you that you don’t have to follow the same path that everyone else follows to owning your first house. So before you gather up your credit report, tax returns, pay stubs, and bank statements and start scouring open houses looking for the right home, ask what the right home means to you.

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    Why Sub-sale Property is preferred by clients who are in a hurry?

    Sub-sale properties or more commonly known as second-hand or used properties are preferred by huge selection people for one reason, the time it takes to fully own the property. Since sub-sale properties are already built there is no waiting period for clients to get their property. All they have to do is wait for a period of 3-4 months until their is approved by the bank or the financial institute.

    Another reason is renovation. Clients who are in a need to move into their new property, for example an house, that house would’ve already been renovated for the most part which in turn brings down the cost even more.

    Moreover, the area of the property has already been established which means, schools, shopping malls and etcetera are nearby which is convenient for potential buyers.

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    What is a Sub-sale Home?

    A sub-sale house is a house bought after it has been sold by to another party the developer and is better known as a second hand, secondary or secondary market house.

    Usually they are sold by registered owners consisting of individuals or companies.

    The buyer deals with the seller or through a registered third party dealer. For examples are real estate agents and consultants.

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