Your Roommate Referral Needs To Be Good

Posted on 26. Aug, 2009 by Stuart in Real Estate

In college, in a city, or even in a small town where a home is too big for one person; inevitably, roommates are needed for all of these situations. Sometimes the rent or the mortgage is just too much for a single tenant, in these cases, roommates can be a valuable asset. However, it is also important to know that having or taking on a roommate might also be the ultimate downfall of your home. To avoid getting a serial murderer as a roommate, it is always important to require good referrals from any prospective roommate candidate or even potential prospects. Understanding this makes it clear that if you are looking to live in a home as someone’s roommate, your referrals must be good. For the sake of clarity, let’s break these two situations up into groups.

When Taking A Roommate Referral:
If you own a home or rent an apartment or home but are looking for a roommate, the number one thing to require for any and all candidates is a letter of reference from several people. The people writing the letter of reference should be a reputable member of the community and not family members. This letter could come from a local member of government, a member of the clergy, doctors, teachers, and so on. It is best if the letter comes from one of these types of people rather than a mechanic or a tailor.

When the referral has been taken, the next thing to do is make sure that they are viable. On letters of reference, it is required to leave some contact information so that the owner of the home may contact the issuer of the letter to make sure it is not forged and that it is legitimate.

Contact the issuers of the letters of reference to just conduct a short little five minute interview with them about the potential tenant. Ask questions about their character, their living habits, their diet, their friends; that kind of thing. Any type of question that will give you a more intuitive grasp of who they are and how they live is important.

In some larger areas, there are so many people applying for the room that there might not be enough time to contact all of the reference writers. If this is the case, pick a top 2-4 candidates that you are impressed the most by. Once you have established these top contenders, and then contact the reference issuers for final verification. Then, make your final decision based on those contact’s verbal references.

When Compiling Your Roommate Referral:
What is just as important is making sure that, when applying for a roommate position that your referrals are good. When deciding who to ask to write your references, the first thing to do is make sure they will be viewed as reputable in the eyes of the owner or principal renter. Some good people to consider are friends that know you well and will be able to tell of your best character easily. Picking someone of a reputable profession is also a good idea. If you are applying for a roommate position in a college setting, try and stay away from other college students. Principal renters or owners prefer to have references of people in authority that can speak more truly about your character, as college students are more inclined to lie about character.
Perhaps picking an old family doctor, a former pastor or a favorite teacher would be some of the better decisions. Never ask a parent or close family member to write a letter as they will not be taken seriously. However, if it is a more distant family member or a family member by marriage, those will usually be more acceptable.

As long as these general ideals of a roommate referral are followed, it should be no problem picking the best roommate or finding a nice, clean place to live.

Photo source: Aaron M

How to Buy A Store

Posted on 25. Aug, 2009 by Stuart in Real Estate

If you have ever thought of buying your own store, the present economy offers many opportunities. A deep recession has hit most of the world’s economies and in such an environment prices tend to be very low.

Of course, you also to have to factor in the possibility that business might be slow because of a sluggish employment market. People who are out of work, or who are afraid of losing their jobs, do not spend as much money. So it pays to do research on which sectors have been resistant to the recession, or possibly have been damaged so badly by hard times that there is a resulting shortage of competition.

Many successful businesses were started during “down” times because of the great deals that are possible in acquiring property, inventory and just about anything else essential for running a business.

What type of store?
The first thing to consider is what type of store you are looking for. Generally it is best to get into something that you have some knowledge and experience at, but that may not always be the case. Again, you also have to consider the market conditions. If there are too many stores selling the same thing, but not enough demand, then you want to stay away from this field.

In some cases you can buy franchises, which come complete with training programs and a structured setup that is tested and proven to work. In these cases, experience might not be that big of an issue. You simply follow each step of the structured program, and if you have problems, the corporate office provides support. However, franchise stores can be expensive and you may not automatically be accepted even if you apply.

Do some research first to see what types of retail businesses are doing well, or are projected to do well in the immediate future. On the internet, you can scan websites, blogs and networks that specialize in the area of retail business to get the latest news and advice.

Once you have decided on the type of business, the next step is to find your store.

Where to locate your store?
They often say that location is everything. This can certainly ring true in the retail business. You need to be located in an area that is convenient to your customers. The store should have good visibility. Ideally your store will be located in an area where there is already a lot of customer traffic such as a mall.

While malls are full of shoppers looking to buy things, the average mall customer might not necessarily fit the profile for your business. So you should first study the demographics of your business and decide whether a mall or any other location attracts customers that fit your customer demographic profile. Also, if you are considering a mall make sure that the establishment is doing well. Many malls are closing during this recession, including some that may seem relatively busy. So you will have to get some more detailed information on the financial situation of the mall.

Buying a store
After you have decided where to locate, then the task is to actually buy an establishment. You can check in the businesses for sale section of your local newspaper, or use online sources like craigslist.com and businessesforsale.com. You may even want to put out an ad yourself listing the type of storefront you are looking for.

If you are purchasing a store that is currently doing business, ask about profitability and see if you can get audited financial records. Also check that the price is reasonable by comparing it to similar properties in your area. You might want to ask why the current owner is selling the store. If the establishment is full of inventory that might be a sign that business is slow.

With a little care, you should find the right store.

Photo source: Mag3737

Using cargo containers for homes

Posted on 13. Aug, 2009 by Stuart in Real Estate

In an age where global warming is the catch phrase and green is the new black, use of cargo containers for home or office building has become a niche market that many architects and contractors are scrambling to fill. Because shipping containers are modular and stackable like building blocks they are quite easy to use in the process of building homes. The fact that cargo containers are being repurposed for this also has environmentalists labeling it as a legitimate green alternative to comparative building materials.

Using cargo containers for homes is not a new concept. The military has used the containers for bunkhouses and temporary offices for ages and there are multiple instances of home designers utilizing shipping containers for residential designs as far back as the early 80’s. Many European countries have also used them as temporary and emergency shelters in the event of a natural disaster. These factors and the impact of the environmentalist movement have created the field of container architecture and as natural resources become less abundant it will continue to grow.

From a design standpoint, the use of cargo containers for building homes is both aesthetically pleasing as well as functional. Many designers have embraced the challenge of creating beautiful homes and office spaces from cargo containers. The fact that the containers can be stacked up to twelve high and are fireproof, hurricane proof and flood proof is a very appealing aspect for the use of cargo containers for home building. The fact that these containers, as building materials, are relatively inexpensive makes them all the more attractive.

Another enticing characteristic of shipping containers is their availability. Most cargo containers shipped from Asia to the United States end up either being shipped back empty or sold. Secondarily, transport of the containers to the home-building site is relatively easy since flatbed semi-tractor trailers were designed to haul them. It’s even reasonable to assume that prefabricated cargo container homes could be designed in the factory, then shipped to and assembled at the building site at a comparatively low-cost to other home-building materials.

Structurally, the containers are incredibly durable. The container, itself, is fabricated from corrugated steel. The interior floor of the cargo containers is generally made of teak wood and many are insulated. These containers were built to withstand incredibly adverse weather on the ocean. While the shipping containers generally come in assorted colors such as red, blue, yellow or rust, you as the homeowner would have the option of painting to suit your tastes. Another positive factor in considering the use of cargo containers for homes is that they are termite resistant.

Construction of homes using cargo containers isn’t perfect, though. Containers, while they are a recyclable resource are not a sustainable resource. One of the main purposes of using cargo containers for buildings is to re-use something that often takes more expense and energy to melt down than it does to recycle as building components. Another major roadblock in the way of this eco-friendly use of material is building codes. While the steel containers are stronger than most other building materials planning departments have historically been slow to accept cargo containers as viable.

Cargo containers sit for inordinate amounts of time and take up valuable real estate at shipping ports along the coasts of the United States. It makes sense to utilize these repositories for something besides space wasters. Since it is generally more expensive to ship them back to their country of origin and even more expensive to melt them down, they sit, unused due to the fact that new containers are continually purchased from Asia. In the long run using cargo containers for homes or office buildings is an adequately green alternative for an inexpensive building material.

Photo source: splorp

Easy ways to evict a tenant

Posted on 04. Aug, 2009 by Stuart in Real Estate, Uncategorized

Evicting a tenant can be a simple and easy process, or it can drag on for months on end. Even if an eviction is lengthy, though, some common-sense steps can lead to easy ways to evict a tenant and can reduce anxiety on the parts of all involved. The first of these steps is to maintain a professional relationship with all tenants. This will assure tenants who are being evicted that the landlord is aware of the rights of all parties and will not be taken advantage of, but will be fair.

Before beginning an eviction, a landlord must consider the reason for which the tenant is being evicted. This reason will affect how the landlord should proceed. In most cases, direct communication with the tenant is a definite advantage in obtaining an easy eviction. Speaking directly to the tenant in the case of an eviction where outside circumstances are to blame may result in not only an easy eviction, but also a continuing relationship with a trustworthy renter. If this is the case, an expensive eviction lawsuit will be unnecessary.

In many cases where an oral request does not result in an easy eviction, serving a notice to quit will do the trick. A notice to quit is a written, formal request from a landlord to a tenant asking the tenant to vacate the premises. Landlords who find themselves needing to serve a notice to quit should have the document drafted by an attorney if at all possible. After the notice to quit has been served, the tenant may wish to deal directly with the attorney. In this case, an eviction is easy for the landlord but may be expensive.

If a tenant’s actions have precipitated the eviction, up-front communication is still important. The first step in this case is for the landlord to determine that there is a valid legal reason for eviction. Laws regarding eviction are different in various places, so it is important to do enough research in the particular area of the rental property to know what rights landlords have in relation to eviction. Landlords should also review the original rental contract before pursing eviction. Once armed with this knowledge, the landlord should approach the tenant in a professional manner about the situation and request that the tenant vacate the premises with a notice to quit. It is best for all contact to take place in writing or to be legally recorded in some other way. This provides the landlord with proof of the various encounters, which serves as protection in the event that the eviction case goes to court.

Landlords should also be aware that different areas have different laws regarding how much time a tenant has to vacate the premises. An easy eviction in less than 30 days is highly unlikely.

If the tenant does not leave the rental premises willingly, the landlord will then have to file a lawsuit to evict. This process may be relatively short, but if the renter hires a lawyer and mounts a defense it could be quite lengthy.

In all cases, one way to make an eviction easier is to give the renter other options. If the landlord is willing to retain the renter at another property, an offer of that other property may make the process go quite smoothly. If the landlord is evicting the renter because of breach of contract or failure to pay and does not wish to retain the renter, maintaining good relations is still a smart move. The landlord may help the renter make other arrangements, such as finding a cheaper rental in the area or looking into public housing. Most renters do not want to be at odds with a landlord. If a cordial relationship can be maintained and an alternative living situation made apparent, renters are usually willing to help reach a solution that is agreeable to all parties.

Photo source: Karen Eliot

How to buy foreclosures without appearing parasitic

Posted on 27. Jul, 2009 by Stuart in Banks & Financial Institutions, Real Estate

Foreclosures are a big part of the current financial landscape and investors willing to buy homes that have been repossessed can position themselves to make a lot of money when the economy improves. The housing market will go recover from the nearly record-setting slump in home value and the newly acquired properties will eventually sell for substantially more money than investors paid for them. It’s to be expected that entrepreneurial buyers will take advantage of the excellent buys.

The problem is that one’s person gain is the result of the financial failure of someone else, and when you buy up a foreclosure as an investment, you’re very much in danger of being perceived as parasitic.

A parasite by definition lives at the expense of the host. As the parasite grows the host declines, leaving the life blood to the parasite while the host bears the burden.

So goes the perception of homebuyers who take advantage of low foreclosure prices. Whether the home is purchased with the intention of living in it or of moving it on the market for a profit, the perception parasitic buying can easily develop.

Deciding how to buy foreclosures without appearing parasitic is a difficult and sensitive task. There are ways to minimize the risk of ruining your reputation as you buy a foreclosure but the path can be a slippery one.
One way to avoid the appearance of being a parasitic buyer is to let your realtor handle the transaction every step of the way. A realtor will have your interests at heart and negotiate a purchase price while avoiding the appearance of being heartless that you would inevitably create during your own buyer-to-seller negotiating.

Not only will the legal matters be professionally handled and legal loopholes closed, you will not have to face the confrontation that might develop if a seller who believes you are working hard at taking advantage of him in the midst of his financial disaster. Though this principle of allowing realtors to handle the process applies primarily to pre-foreclosed homes in which sellers are trying to get out from under the payments or to those sellers who are in the process of being foreclosed upon, the approach works equally well when dealing with banks, credit unions, and other loan institutions.

An investment company that specializes in real estate and who acts on your behalf is another way to avoid the appearance of a parasitic buyer. If you are buying several homes, this may be your only hope of maintaining anonymity. Local newspapers will carry the transfer of home ownership in their legal sections but the fine print is seldom read by most subscribers. Using the services of a company who buys foreclosed homes on your behalf, or who perhaps buys home for resale, is a way to maintain a low profile in a potentially volatile situation.

Another way to avoid the appearance of being a parasitic buyer is to pay the asking price. Most home buyers list saving money as one of their top goals during negotiations. But money isn’t everything, and if your reputation and conscious are at stake, paying a little more than you might have to can be a financial gesture of good will worth far more than the money you’re losing.

The final way to avoid the appearance of a parasitic buyer is to deal with banks and loan companies who have little personal stake in the people who have lost their homes to foreclosure. Large financial institutions offer homes for low prices to unload them, and to them, foreclosures are just business transactions and nothing more. If you’re a shrewd negotiator, these institutions know and respect what you’re doing.

Knowing how to buy homes without being perceived as a parasitic buyer is tricky business, but if you’re willing to use the tactics that work, it can be done.

Photo source: respres

Loans for first time home buyers: Do they exist?

Posted on 09. Feb, 2007 by Stuart in Loans, Mortgage, Real Estate

Are there any first time home buyers left? There may be, according to this article but the once growing horde is slimming down somewhat.
It’s getting harder and harder for first time home buyers to get into the market as interest rates increase and property values continue to soar. Salaries haven’t kept up and the only home buyers left in the market are second or third generation purchasers.
So what options are left for the little people?
It wasn’t that long ago that we began scoping the financial landscape for our first home – and that was before the big property boom. Today, most of our friends shake their heads wondering how first time home buyers will ever get into the market. Will their mortgages exceed their lifetimes? Will their children inherit their debt?
Hopefully these won’t be the outcome as there may be a few options available for first home buyers. Here’s a few loan options;

• Zero Down Payment Loans – Before you even contemplate this as an option you need to understand that buying a home with this type of loan, at the end of a property boom, is the worse thing you could do. Prices will invariably drop and if you default on your loan payments you could end up owing the bank more than the home is worth.
  Having stated that, these loans are a great option for first home buyers. They don’t require a deposit so you can get into one just as quickly as getting into a rental contract. The downside is you don’t have the deposit to offset any of the interest payments.
  But still, with property prices increasing, you won’t be able to save enough deposit to get into a home as you will continue to get further and further behind.
• Allow boarders and proposition your bank manager – There is one thing working to your advantage here – rent is also increasing. Not only is it hard enough to buy a house, it’s becoming too expensive to rent.
  Draft a plan that allows you to accommodate a few boarders in the spare room, thereby increasing the amount you can use to service a first home loan. Banks are always looking for good options to loan money and a well thought-out plan should give them enough confidence to lend you enough for a mortgage.
• Shack up with your best friend’s wife (and him, of course) – Try splitting the loan between two couples. There is a little more paperwork and bureaucracy that will need to be attended to in this situation but it can be done.
  Both couples split the home and amenities while only paying half of the mortgage. When it comes time to sell, the other couple buy your half out or you split the price that the house sells for. Easy.
• Get the parents to pay half – As most parents are into their second or third home they easily have enough equity in their home to use as capital on a new mortgage. If you play your cards right you could even get them to pay half of the mortgage so that it becomes an investment for them as well.
• Source a first time home buyers grant – Many governments are now offering grants to first time home buyers to help get them into their own home. Finding viable sources can be as easy as searching Google or visiting a home display centre.

It is getting harder for first time home buyers to get into the market, but it’s not impossible. Take some initiative and find alternatives to get the result you’re after.

42 Quick Projects to Sell Your Home Faster

Posted on 03. Jan, 2007 by Stuart in Real Estate

Selling your own home can seem like a mission unless you’re prepared to get your hands a little dirty. Simple changes and repairs can make the difference between the time it takes to sell and also the price you finally secure.
So here’s a quick list of things you can do (and in most cases will cost virtually nothing) to improve your home’s chances of selling fast.

Outdoors

1. Mow the Lawn
2. Weed the garden beds
3. Create some Explore-Lust
4. Replace the mailbox
5. Plant some cheap flowering annuals
6. Let your pets have a holiday at the local boarding kennel (So your prospective buyer doesn’t have to step in anything as they peruse your house)
7. Repaint or replace your old fence
8. Create a new path or update an old one
9. Add a focal point such as a statue or container plant
10. Remove any rubbish that lays around the garden
11. Hang a bird-cage near an outdoor area
12. Hire some outdoor furniture while you advertise your home
13. Set up a square vegetable garden
14. Remove spiderwebs from the gutters and eaves
15. Clean the windows
16. Hire a pressure washer and hose down the driveway
17. Replace any chipped or damaged paving
18. Trim plants, shrubs and trees
19. Clean the curb directly in front of your home
20. Get a close friend the critique the street appeal of your home
21. Take any rubbish to the dump

Indoors

22. Paint or repaint the walls in neutral colours (it may have worked for you with psychadelic illuminates but it won’t work for many others)
23. Fix leaky taps
24. De-clutter the whole house
25. Remove any mould from bathroom tiles
26. De-odorize your home – especially kid’s bedrooms and bathrooms
27. Sparingly adorn furniture and walls will family photographs (most agents will tell you to remove all of these
    but they can improve your chances of selling if your target market is families)
28. Make sure the kitchen appears light and fresh
29. Rent some furniture while advertising your home and put your furniture into storage – Unless of course your furniture is modern and appealing
30. Store children’s toys in storage boxes
31. Clothes cupboards should be neat and tidy and well organised

Daily Indoor Maintenance

32. Vacuum and/ or sweep the floors
33. Keep towels fresh and neat in bathrooms
34. Clean mirrors so that they sparkle
35. Keep toilet rooms clean and neat
36. Make sure dishes are clean and put away
37. Burn incense candles or use an air freshener
38. Keep freshly cut flowers on he kitchen cupboard

The Shed

39. Find a place for all your tools – otherwise rent a storage shed and stow most of the clutter items there
40. Dispose of unused paint tins and chemical bottles
41. Clean and tidy is the key – remove sawdust (unless it’s fresh and looks appealing)
42. Remove oil stains from the floor

Six reasons why I’d invest in stocks over property

Posted on 11. Nov, 2006 by Stuart in Investing, Real Estate, Stocks & Shares

Ask a real estate agent which investment option is better and she’ll tell you “Property”. Ask a stock broker which is the better performer and he’ll unequivocally state “Stocks.” So which is better?
You can make up your own mind but here’s six reason’s why I’d invest in stocks over property.
For the record, I’m not saying that I wouldn’t invest in real estate or that it’s a bad idea to do so. I’m merely stating that there are reasons why stocks are much better

1. Liquidity
The beauty of investing in stocks is that if everything goes pear-shaped, either with your investment or your own life situation, you can readily liquidate them. In fact, you could have them sold and the money transferred to your bank account within an hour.
To liquidate property requires are far more tedious and time consuming exercise. The property needs to be listed with an agent who will then network with clients to view the property. If there is no interest at this level, the property will be advertised and in due course a buyer will be sourced.
Then there’s the settlement period which could take from between 1-3 months before you actually see your money.
2. Transaction costs
Transaction costs when buying a property include stamp duty tax, conveyancing fees, mortgage transfer fees etc and could be well into the thousands of dollars. Selling your property will also incur fees including the agents fee, unless you go down the for sale by owner road and perhaps some legal costs. These exit fees will also be in the thousands of dollars.
Stocks, on the other hand, enjoy marginal transaction costs. Taxes may apply and perhaps a small percentage by a broker but nowhere near the amount we’re prescribing with a property transaction.
3. Stocks outperform property in the long term
Traditionally stocks outperform property over the long term trend. Why? Because property is an asset used by companies which obviously affects their share price. Any upswing in property values is reflected in the company’s balance sheet which determines their dividends or stock value. Downturns are also measured against the company’s financials.
If the companies were no longer making profits then stocks would go down but so too would the value of property. People would be laid off, property values would fall as people try to reduce their mortgage debt and the value of stocks would still remain higher.
4. Ability to enter the market
Try getting into the property market with $5,000 and you’ll find listed property trusts may be your only avenue (although most of these require larger entrance investments). However, with $5,000 you could start investing in stocks immediately.
This is the problem for new home buyers. Coming up with a 10-20% deposit on a $400k home is near on impossible. I imagine that in years to come many young people will turn to investing in the stock market long before they contemplate buying a house.
5. Maintenance costs
Stocks cost nothing to keep. Real estate, on the other hand, will consume large chunks of maintenance money. At the very least fashions and trends change and there is always the need to update and keep your property relevant in a fickle market – unless your prepared to accept less when selling it.
Gardens, lawns, fences, plumbing, painted areas… the list goes on and on – and on.
6. Transaction ease
This is where stocks stand out. As previously mentioned when it comes to liquidity stocks are very easy to sell and buy. All it takes is a phone call or internet transaction and the investment is yours.
Real estate takes much more. Time, legalese, paperwork etc makes a transaction to purchase or sell property look more like signing a peace treaty with a warring nation.
While property seems to have many downsides to investing than stocks, there is another option than buying a physical property – Managed Property Trusts. These are similar to stocks in that you are buying a share of the property rather than the whole property.
Many managed property trusts are listed on the stock exchange as well and enjoy all the convenience of buying and selling as stocks have.

How to sell your own home in 7 easy steps

Posted on 16. Sep, 2006 by Stuart in Real Estate

Balancing the decision to register your house with a local real estate agent or try and sell your own home can be a very daunting proposition. While you will reap the rewards of not paying out commissions if the house sells, the flipside is the wasted advertising and time and effort that accumulates if you can’t sell your own home.
Not to mention the many charlatans and con artists who will try to sell you a plethora of resources and tools to help sell your house. Finding objective advice can be just as difficult.
So what are the pitfalls and what strategies can the average person use to sell their own home and pocket the best return? Keep reading for some easy tips to get you moving – literally…

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Buying an investment property for your holidays

Posted on 19. Jul, 2006 by Stuart in Investing, Real Estate

When most people consider purchasing an investment property they normally think in terms of residential or commercial rentals. That is, they buy a property expecting to rent it out to long-term tenants. While this is an effective investment proposition and has been successful over the years there is less known about purchasing a holiday investment property.
We’ve just come back from a weekend in Fremantle staying in a holiday property. The unit was sited amongst a block of 1 and 2 bedroom apartments that was oiginally built in the 70’s. From the outside the building was very ordinary but inside the unit the owners had renovated the living space into something very tasteful and comfortable.
We came across this unit from some online hunting and were able to secure it for $70 per night (fairly cheap when you consider most hotel rooms range from $110+ per night). The selling point for us though was its own kitchen and amenities which allowed us to cater for ourselves without having to dine out for every meal.
It then challenged us to think about the possibilities of buying into this market fo a couple of reasons;

1. Cheap holidays – obviously this is the biggest bonus. Not having to fork out cash every time you want to take a holiday is big plus.
2. Location – If you have your own property in a location where you are likely to use it often then it can also provide a major benefit. Most of our family live in Perth so we always trek north for Christmas, major family functions and the occassional gathering. This event, with our four children, can sometimes be an insurmountable mission especially when we require staying with family members. Being able to have our own place that isn’t too far from the action but far away enough to give us some space would be great.
3. Rental income – when we’re not using the property we can rent it for others to use and hopefully this will pay the mortgage.

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