Friday, June 17, 2011
Tuesday, October 12, 2010
The First Time Landlord: Determining Rent Price
As a landlord, determining how much to charge for rent can be a difficult prospect. Setting a realistic market rent will be crucial to making the most out of your investment, regardless of whether you’re renting out your former primary residence following a move, leasing an investment property or renting out a vacation home on a seasonal/weekly basis. If you set rent too low you may end up leaving money on the table. On the other hand, if you ask too much in rent you risk having the property stay vacant for long stretches or seeing high tenant turnover.
Calculate your cost
Before you begin determining how much you can or want to charge in rent, it’s prudent to first gauge your total cost incurred from owning and renting the home. Your total cost will include mortgage payments, maintenance expenditures, any paid utilities and professional services you may require (such as property management, tax help or legal consultation). Avoid being too conservative when estimating potential maintenance and repair costs.
The cost of owning and renting out may not directly dictate the rent you charge in all cases, but it will serve as a vital baseline value which you can refer to as you get closer to setting a rent price.
Potential rental rates based on home value
Professional real estate investors often determine rental prices by looking at the total value of the home. A common rule of thumb is that for homes up to about $100,000, you can charge approximately 1.1% of the home’s value in rent ($1,100/month). With increasing home values, the percentage you can realistically charge will become smaller as the rental pool becomes more limited. For example, if your home is valued at $400,000, you may only be able to charge .75% of its value, or $3000/month.
In general, calculating rent in this fashion is mostly a useful theoretical exercise that can provide some framework for you to work within. While in some cases you may be able to price rent purely based on the current value of your home, in most cases the realities of the local rental market will play a far greater role in determining how much rent you can realistically hope to charge.
Understanding the renters in your market
Before investigating actual rental rates in your market, it’s important to actually understand the nature of the rental market and area renters. The needs of renters differ from those of potential buyers. For example, most renters will not be as interested as buyers in top of the line fixtures or brightly painted interior walls, because most lease agreements will prevent the tenant from changing such elements to meet their own taste. Things that will interest many renters include sturdy carpet that will resist wear and tear, appliances in good working order and plenty of storage space.
In addition, rental markets are often defined on a highly local level – notice how rental classified are often divided by neighborhood or sub neighborhood. The needs and wants of renters in your local area will greatly influence how much rent they are willing to pay for your particular property.
For example, a five-bedroom luxury house with attached three-car garage may have a tough time commanding high rent if located in a neighborhood whose rental demographic is predominantly students, single professionals or young couples. By the same token, a modestly sized studio or cottage will not rent for nearly as much in a suburban area popular with families and pet owners.
Establishing market price
To truly devise a competitive rent price, you will want to thoroughly research the prevailing rents of comparable homes. Start by scanning newspaper ads or online classifieds such as Craigslist to assess the price range for similar units in your area. Make sure to sample listings that are of comparable size and amenities, and which are near enough to your home to fall under the local conditions of your micro-market.
Once you locate some comparable properties, visit them to better compare their amenities, location, condition and level of maintenance with your own home. Rental listings often vary a great deal from what is advertised to what you see in person when looking over the property, and often this discrepancy can help explain drastic differences in advertised rent. Visiting three or four homes in person will give you the best idea of how your home stacks up against the competition.
Long term strategy
Before you settle on a final rental price for your property, take some time to consider what your overall goals are with the rental unit. Are you focused on making a profit from the unit or recouping as much of the ownership cost as possible? If so, you may decide to charge rent on the high end of the market, at the risk of experiencing higher tenant turnover or longer periods of vacancy between occupants.
If instead your goal is to ensure steady rental income from the unit, minimizing periods of vacancy, you will likely want have a pricing strategy more geared towards attracting long term tenants.
Information Courtesy of RE/MAX of Indiana's Monthly Newsletter
Calculate your cost
Before you begin determining how much you can or want to charge in rent, it’s prudent to first gauge your total cost incurred from owning and renting the home. Your total cost will include mortgage payments, maintenance expenditures, any paid utilities and professional services you may require (such as property management, tax help or legal consultation). Avoid being too conservative when estimating potential maintenance and repair costs.
The cost of owning and renting out may not directly dictate the rent you charge in all cases, but it will serve as a vital baseline value which you can refer to as you get closer to setting a rent price.
Potential rental rates based on home value
Professional real estate investors often determine rental prices by looking at the total value of the home. A common rule of thumb is that for homes up to about $100,000, you can charge approximately 1.1% of the home’s value in rent ($1,100/month). With increasing home values, the percentage you can realistically charge will become smaller as the rental pool becomes more limited. For example, if your home is valued at $400,000, you may only be able to charge .75% of its value, or $3000/month.
In general, calculating rent in this fashion is mostly a useful theoretical exercise that can provide some framework for you to work within. While in some cases you may be able to price rent purely based on the current value of your home, in most cases the realities of the local rental market will play a far greater role in determining how much rent you can realistically hope to charge.
Understanding the renters in your market
Before investigating actual rental rates in your market, it’s important to actually understand the nature of the rental market and area renters. The needs of renters differ from those of potential buyers. For example, most renters will not be as interested as buyers in top of the line fixtures or brightly painted interior walls, because most lease agreements will prevent the tenant from changing such elements to meet their own taste. Things that will interest many renters include sturdy carpet that will resist wear and tear, appliances in good working order and plenty of storage space.
In addition, rental markets are often defined on a highly local level – notice how rental classified are often divided by neighborhood or sub neighborhood. The needs and wants of renters in your local area will greatly influence how much rent they are willing to pay for your particular property.
For example, a five-bedroom luxury house with attached three-car garage may have a tough time commanding high rent if located in a neighborhood whose rental demographic is predominantly students, single professionals or young couples. By the same token, a modestly sized studio or cottage will not rent for nearly as much in a suburban area popular with families and pet owners.
Establishing market price
To truly devise a competitive rent price, you will want to thoroughly research the prevailing rents of comparable homes. Start by scanning newspaper ads or online classifieds such as Craigslist to assess the price range for similar units in your area. Make sure to sample listings that are of comparable size and amenities, and which are near enough to your home to fall under the local conditions of your micro-market.
Once you locate some comparable properties, visit them to better compare their amenities, location, condition and level of maintenance with your own home. Rental listings often vary a great deal from what is advertised to what you see in person when looking over the property, and often this discrepancy can help explain drastic differences in advertised rent. Visiting three or four homes in person will give you the best idea of how your home stacks up against the competition.
Long term strategy
Before you settle on a final rental price for your property, take some time to consider what your overall goals are with the rental unit. Are you focused on making a profit from the unit or recouping as much of the ownership cost as possible? If so, you may decide to charge rent on the high end of the market, at the risk of experiencing higher tenant turnover or longer periods of vacancy between occupants.
If instead your goal is to ensure steady rental income from the unit, minimizing periods of vacancy, you will likely want have a pricing strategy more geared towards attracting long term tenants.
Information Courtesy of RE/MAX of Indiana's Monthly Newsletter
Friday, October 16, 2009
Let Uncle Sam Help Pay for Energy Efficiency Improvements
The $8,000 New Home Buyer Tax Credit (along with the Cash-for-Clunkers) may have dominated the headlines recently, but some energy efficiency Tax Credits offered by the federal government could be even more useful for the average homeowner. You may be eligible for a tax credit equal to 30 percent of the cost of materials (up to $1,500) for certain products purchased between January 1, 2009 and December 31st, 2010.
Contact your tax representative today!
Contact your tax representative today!
Wednesday, September 9, 2009
Kitchen Appliance Buying Guide
New space-aged appliances have the American kitchen looking more and more like the bridge of a science-fiction spaceship. High tech innovations, upgrades to energy efficiency, sleek style enhancements and lowering prices all make new kitchen appliances appealing to a number of different types of consumers.
Home owners: Revitalizing your kitchen doesn't necessarily require an expensive, full-scale remodeling project. Upgrading individual kitchen appliances can help refresh the style of the entire room while also enhancing your cooking experience. Obtaining financing on individual appliances is also easier than getting a home equity line of credit or other loan for a full-on remodeling project.
Sellers: In a slower housing market, making cost-conscious home improvements increases the likelihood of selling at or near your asking price. Which appliance is oldest or showing its age the most? Are there any common appliances that your kitchen lacks, such as a dishwasher? By focusing your spending on one major item of need, your home just might appeal to a wider range of buyers.
Buyers: When considering two otherwise comparable homes, typically the one with new kitchen appliances and furnishings will carry the higher asking price. You can certainly choose the newer kitchen, but you will essentially be paying part or all of the cost of that remodel, a remodel that may include stylistic touches you don't care for and furnishings or appliances that are now available at cheaper market prices. As an alternative, buyers should consider the possibility of buying an older kitchen and upgrading some or all of the kitchen appliances with brand new models. Whether you're looking to upgrade one appliance or re-do a whole kitchen's worth of equipment, this buying guide will serve as an excellent primer.
Dishwashers Of all kitchen appliances, dishwashers take more than their fair share of abuse. A new replacement dishwasher is welcome upgrade for almost any kitchen. If you are currently sink-and-sponging all of your dishes clean, you'll find that a new dishwasher is time-saving and environmentally friendly (modern dishwashers use less water to clean dishes than hand-washing).
Style/Capacity: Dishwashers come in a number of different alignments and capacities. The right dishwasher for your kitchen will depend on the space you have available, the load needs for your household and the individual style of your kitchen.
24" Built-In - The most common installation, the 24" fits under a kitchen counter and has space for 10-16 place settings. Washers in this size have the widest range of features, options and prices.
Compact 18" Built-In - These smaller-capacity models are ideal for smaller kitchens or households with 1 to 2 occupants. The smaller capacity results in more efficient loads.
Portable - Portable dishwashers connect to the kitchen faucet, and can be stored out of the way when not in use. Available in both 18" and 24" configurations, they have the benefits of standard dishwashers with portable flexibility.
Two-Drawer Washers - Two-drawer setups allow for increased efficiency and flexibility. Each drawer can be operated separately, or they can be run simultaneously. The ability to run two different cycles at once allows for fle, while single-drawer usage allows for increased efficiency when washing smaller loads.
Energy efficiency: The overall efficiency of dishwashers has been greatly improved over the last decade. New dishwashers use less energy and water, saving you money in the long run. Models with the ENERGY STAR label exceed federal energy standards by 25% or more.
Stationary vs. adjustable racks: While most dishwashers have preset rack spaces, those with adjustable configurations allow provide greater flexibility when loading large or irregularly shaped dishes.
Delayed start: Many models allow you to set a delay on the load start time. By running the dishwasher during off-peak hours, you can take advantage of cheaper utility periods. Such units also allow you to maintain a quieter kitchen during the day.
Noise insulation: More insulation around the tub will reduce dishwasher noise, so check for units with thicker insulation.
Built-in food disposers: Many newer models feature food disposers that grind up food particles and flush them out with waste water, preventing food specks from being re-deposited on your dishes.
Cleaning Capabilities: Wash arms with smaller spray holes provide more scrubbing power. In addition, many dishwashers are equipped with multiple tiers and washer arms to better dislodge caked-on food.
Cycle types: in addition to regular wash cycles, many dishwashers allow specialty cycles designed to tackle specific dishes such as pots and pans, crystal, and fine china.
Finish and style: Dishwashers now come in a wide variety of materials, colors and finishes to better match your kitchen décor. Some unites come with fitted wood paneling to perfectly match your cabinetry, while others accommodate fully customizable front panels for an even more unique look.
Ranges and OvensToday's range and oven combinations help can help everyone from the novice cook to the amateur chef create amazing meals in shorter times and with easier cleanup. When shopping for ranges and ovens, you should consider the size and design of your kitchen, the types of foods you most commonly cook, and the kinds of features that could make food preparation in your home easier.
Installation Type: Three basic styles of ranges are available. The range that best suits your kitchen will depend both on the kitchen design and the space/location available for the range unit itself.
Freestanding - Ranges with finished sides and a backsplash. Electric freestanding units typically have controls located on the backsplash, while gas models will have the controls located on the front.
Slide-in - These ranges have a built-in look with no backsplash, and controls located in front.
Drop-in - Drop-in models also blend seamlessly with the existing cabinetry, and may require custom cabinet modification for a tight fit.
Power Source: Aside from some exotic specialty models, most range and oven combo units fall into one of three power sources:
Natural Gas - Gas ranges provide a wide range of cooking power and precise cooktop heat controls.
Electricity - Electric ranges are energy efficient, and electric ovens are known for even, high quality cooking.
Dual-Fuel - These models feature a gas cooktop with electric oven. Such units require a higher initial investment, but combine the heating power of gas cooktops with the even cooking of electric ovens.
Cooking Surface: Both gas and electric range tops are available in a variety of cooking surfaces, including:
Coil - A common burner type in electric ranges that provides economical heat.
Ceramic-glass cook tops- Use radiant heat and are available in electric and some high-end gas ranges.
Open Burner - Common standard amongst gas ranges.
Sealed burner - An advanced gas range cooktop, sealed burners with upswept surfaces make cleaning easy.
Electric Range Features:
Energy efficient burners with selectable sizes.
Warming zones to keep food hot and fresh
"Hot surface" safety indicator lights
Gas Range Features:
Simmer and high-output burners
Pilotless ignition
Re-igniting burners
Dedicated griddle space
Ventilation options: Most ranges come equipped with standard overhead or "hood" ventilation, but some units utilize downdraft exhaust, eliminating the need for overhead ventilation equipment.
Oven Heating Type: New innovative heating systems have dramatically changed the cooking options available to consumers.
Conventional - Operating on either electricity or gas, conventional ovens feature one heating element for baking and roasting, and another for broiling.
Convection/European Convection - In addition to the standard bake and broil elements in the oven, a third heating element is located in the back of the oven near the fan.
Trivection - These ovens combine conventional, convection and microwave heating to create optimum cooking results in minimal time.
Oven Features: Some of the most popular oven features available today include
Self cleaning cycle.
Adjustable oven racks
Electronic controls and "auto-off" functionality.
Large display windows and strong interior lights
Warming drawers to keep food hot and fresh.
Refrigerators
Usually the largest appliance in the kitchen, the refrigerator plays a central role in day to day cooking and kitchen use. Finding the right model for your household is a matter of evaluating space needs, style preferences and desired functionality.
Capacity/Size: Full-size refrigerators come in a wide variety of capacities. Large, family-sized units can feature upwards of 26 cubic feet of space. Two people generally need eight to ten cubic feet of fresh food storage. For each additional member of the household, add an extra foot to foot and a half of storage space
Configuration: Several different refrigerator designs are available, each of which offer their own advantages.
Top Mount -The freezer compartment is on top with the refrigerator located below. This is the most common design, and provides a spacious interior.
Bottom Mount - The freezer compartment is located underneath the refrigerator, often in a slide-out drawer. Commonly-used fridge items are easier to access without bending down. The refrigerator compartment may use either a single door or French door design.
Side by Side - The refrigerator and freezer compartments are adjacent. Both frozen and refrigerated foods are within easy reach, but the design may not accommodate larger items such as frozen pizzas or turkeys.
Compact Models - Scaled-down versions designed to fit into tight spaces or underneath counters. Though they have smaller capacities, they are ideal for dorm rooms, basements, offices or family rooms
Energy efficiency: Refrigerator units manufactured in the last few years are vastly more efficient than older models. Energy-efficient models help reduce utility bills. Models with electronic controls and digital displays make setting precise temperatures even easier, and many refrigerators feature advanced temperature regulation systems.
Adjustable shelves: The adjustability of shelving varies from model to model. Some allow you to move shelves up or down without being removed, while others provide the flexibility to adjust both the height and depth of any shelf.
Icemakers/ water dispensers: Icemakers have become a common feature, and the best are those that are integral to the door, leaving more space in the main freezer compartment for food. Many water dispensers also incorporate a water filtration unit.
Individual storage bins/crispers controls: Many fridges now allow you to customize the humidity and temperature settings for each storage and crisper bin, ideal for those who purchase a lot of fresh fruits and vegetables.
Reversible doors: Refrigerators with reversible doors allow customization for right-or-left handed access. These can also be useful for kitchens where the fridge area is tight against a wall or cabinet.
Style and finish: Ideally your refrigerator will be with you for many years, so it is important to pick a style that will match your kitchen design and compliment your changing tastes. Stainless-steel finishes are very popular, albeit slightly more expensive. Black, white, and bisque are the most common refrigerator colors, and trim kits are available that can make a freestanding unit appear more like a built-in model.
Microwave Ovens
If you use your microwave for more than just preheating or thawing, it might be time to upgrade your current model. Today's latest versions come with a wide variety of settings and features that can let you cook entire meals in mere minutes.
Size: Microwaves now come in a variety of sizes and power levels. Choose a size that best fits both your counter/cabinet space and the sizes of cookware that you typically use in the microwave.
Compact - 18" wide x 12" high x 14" deep (less than .8 cubic feet capacity), 500-800 watts power;
Midsize - 20" wide x 12" high x 14"deep (.8 - 1.2 cubic feet capacity), 800-1000 watts power;
Large/full-size - are 20" wide x 12" high x 20" deep (.8 - 1.2 cubic feet capacity), over 1000 watts power
Built-in microwave spaces:
Over-the range models are full size ovens designed to be placed above the stovetop, including a vent feature. These microwaves free up counter space and place the microwave at a convenient eye level. If your kitchen features a built-in microwave area for, make sure to accurately measure the space when comparing models, including some buffer room.
Convection: New combination microwave/convection ovens let you cook in either microwave only, convection only, or combination convection/microwave mode. The convection feature crisps and browns foods in ways that microwave cooking alone cannot.
Turntable: Turntables rotate food for more even cooking, and can be removed for easy cleanup.
Noise: If possible, test out the noise output of several models. Some powerful models can be fairly loud.
Contents courtesy of RE/MAX of Indiana Monthly Newsletter
Home owners: Revitalizing your kitchen doesn't necessarily require an expensive, full-scale remodeling project. Upgrading individual kitchen appliances can help refresh the style of the entire room while also enhancing your cooking experience. Obtaining financing on individual appliances is also easier than getting a home equity line of credit or other loan for a full-on remodeling project.
Sellers: In a slower housing market, making cost-conscious home improvements increases the likelihood of selling at or near your asking price. Which appliance is oldest or showing its age the most? Are there any common appliances that your kitchen lacks, such as a dishwasher? By focusing your spending on one major item of need, your home just might appeal to a wider range of buyers.
Buyers: When considering two otherwise comparable homes, typically the one with new kitchen appliances and furnishings will carry the higher asking price. You can certainly choose the newer kitchen, but you will essentially be paying part or all of the cost of that remodel, a remodel that may include stylistic touches you don't care for and furnishings or appliances that are now available at cheaper market prices. As an alternative, buyers should consider the possibility of buying an older kitchen and upgrading some or all of the kitchen appliances with brand new models. Whether you're looking to upgrade one appliance or re-do a whole kitchen's worth of equipment, this buying guide will serve as an excellent primer.
Dishwashers Of all kitchen appliances, dishwashers take more than their fair share of abuse. A new replacement dishwasher is welcome upgrade for almost any kitchen. If you are currently sink-and-sponging all of your dishes clean, you'll find that a new dishwasher is time-saving and environmentally friendly (modern dishwashers use less water to clean dishes than hand-washing).
Style/Capacity: Dishwashers come in a number of different alignments and capacities. The right dishwasher for your kitchen will depend on the space you have available, the load needs for your household and the individual style of your kitchen.
24" Built-In - The most common installation, the 24" fits under a kitchen counter and has space for 10-16 place settings. Washers in this size have the widest range of features, options and prices.
Compact 18" Built-In - These smaller-capacity models are ideal for smaller kitchens or households with 1 to 2 occupants. The smaller capacity results in more efficient loads.
Portable - Portable dishwashers connect to the kitchen faucet, and can be stored out of the way when not in use. Available in both 18" and 24" configurations, they have the benefits of standard dishwashers with portable flexibility.
Two-Drawer Washers - Two-drawer setups allow for increased efficiency and flexibility. Each drawer can be operated separately, or they can be run simultaneously. The ability to run two different cycles at once allows for fle, while single-drawer usage allows for increased efficiency when washing smaller loads.
Energy efficiency: The overall efficiency of dishwashers has been greatly improved over the last decade. New dishwashers use less energy and water, saving you money in the long run. Models with the ENERGY STAR label exceed federal energy standards by 25% or more.
Stationary vs. adjustable racks: While most dishwashers have preset rack spaces, those with adjustable configurations allow provide greater flexibility when loading large or irregularly shaped dishes.
Delayed start: Many models allow you to set a delay on the load start time. By running the dishwasher during off-peak hours, you can take advantage of cheaper utility periods. Such units also allow you to maintain a quieter kitchen during the day.
Noise insulation: More insulation around the tub will reduce dishwasher noise, so check for units with thicker insulation.
Built-in food disposers: Many newer models feature food disposers that grind up food particles and flush them out with waste water, preventing food specks from being re-deposited on your dishes.
Cleaning Capabilities: Wash arms with smaller spray holes provide more scrubbing power. In addition, many dishwashers are equipped with multiple tiers and washer arms to better dislodge caked-on food.
Cycle types: in addition to regular wash cycles, many dishwashers allow specialty cycles designed to tackle specific dishes such as pots and pans, crystal, and fine china.
Finish and style: Dishwashers now come in a wide variety of materials, colors and finishes to better match your kitchen décor. Some unites come with fitted wood paneling to perfectly match your cabinetry, while others accommodate fully customizable front panels for an even more unique look.
Ranges and OvensToday's range and oven combinations help can help everyone from the novice cook to the amateur chef create amazing meals in shorter times and with easier cleanup. When shopping for ranges and ovens, you should consider the size and design of your kitchen, the types of foods you most commonly cook, and the kinds of features that could make food preparation in your home easier.
Installation Type: Three basic styles of ranges are available. The range that best suits your kitchen will depend both on the kitchen design and the space/location available for the range unit itself.
Freestanding - Ranges with finished sides and a backsplash. Electric freestanding units typically have controls located on the backsplash, while gas models will have the controls located on the front.
Slide-in - These ranges have a built-in look with no backsplash, and controls located in front.
Drop-in - Drop-in models also blend seamlessly with the existing cabinetry, and may require custom cabinet modification for a tight fit.
Power Source: Aside from some exotic specialty models, most range and oven combo units fall into one of three power sources:
Natural Gas - Gas ranges provide a wide range of cooking power and precise cooktop heat controls.
Electricity - Electric ranges are energy efficient, and electric ovens are known for even, high quality cooking.
Dual-Fuel - These models feature a gas cooktop with electric oven. Such units require a higher initial investment, but combine the heating power of gas cooktops with the even cooking of electric ovens.
Cooking Surface: Both gas and electric range tops are available in a variety of cooking surfaces, including:
Coil - A common burner type in electric ranges that provides economical heat.
Ceramic-glass cook tops- Use radiant heat and are available in electric and some high-end gas ranges.
Open Burner - Common standard amongst gas ranges.
Sealed burner - An advanced gas range cooktop, sealed burners with upswept surfaces make cleaning easy.
Electric Range Features:
Energy efficient burners with selectable sizes.
Warming zones to keep food hot and fresh
"Hot surface" safety indicator lights
Gas Range Features:
Simmer and high-output burners
Pilotless ignition
Re-igniting burners
Dedicated griddle space
Ventilation options: Most ranges come equipped with standard overhead or "hood" ventilation, but some units utilize downdraft exhaust, eliminating the need for overhead ventilation equipment.
Oven Heating Type: New innovative heating systems have dramatically changed the cooking options available to consumers.
Conventional - Operating on either electricity or gas, conventional ovens feature one heating element for baking and roasting, and another for broiling.
Convection/European Convection - In addition to the standard bake and broil elements in the oven, a third heating element is located in the back of the oven near the fan.
Trivection - These ovens combine conventional, convection and microwave heating to create optimum cooking results in minimal time.
Oven Features: Some of the most popular oven features available today include
Self cleaning cycle.
Adjustable oven racks
Electronic controls and "auto-off" functionality.
Large display windows and strong interior lights
Warming drawers to keep food hot and fresh.
Refrigerators
Usually the largest appliance in the kitchen, the refrigerator plays a central role in day to day cooking and kitchen use. Finding the right model for your household is a matter of evaluating space needs, style preferences and desired functionality.
Capacity/Size: Full-size refrigerators come in a wide variety of capacities. Large, family-sized units can feature upwards of 26 cubic feet of space. Two people generally need eight to ten cubic feet of fresh food storage. For each additional member of the household, add an extra foot to foot and a half of storage space
Configuration: Several different refrigerator designs are available, each of which offer their own advantages.
Top Mount -The freezer compartment is on top with the refrigerator located below. This is the most common design, and provides a spacious interior.
Bottom Mount - The freezer compartment is located underneath the refrigerator, often in a slide-out drawer. Commonly-used fridge items are easier to access without bending down. The refrigerator compartment may use either a single door or French door design.
Side by Side - The refrigerator and freezer compartments are adjacent. Both frozen and refrigerated foods are within easy reach, but the design may not accommodate larger items such as frozen pizzas or turkeys.
Compact Models - Scaled-down versions designed to fit into tight spaces or underneath counters. Though they have smaller capacities, they are ideal for dorm rooms, basements, offices or family rooms
Energy efficiency: Refrigerator units manufactured in the last few years are vastly more efficient than older models. Energy-efficient models help reduce utility bills. Models with electronic controls and digital displays make setting precise temperatures even easier, and many refrigerators feature advanced temperature regulation systems.
Adjustable shelves: The adjustability of shelving varies from model to model. Some allow you to move shelves up or down without being removed, while others provide the flexibility to adjust both the height and depth of any shelf.
Icemakers/ water dispensers: Icemakers have become a common feature, and the best are those that are integral to the door, leaving more space in the main freezer compartment for food. Many water dispensers also incorporate a water filtration unit.
Individual storage bins/crispers controls: Many fridges now allow you to customize the humidity and temperature settings for each storage and crisper bin, ideal for those who purchase a lot of fresh fruits and vegetables.
Reversible doors: Refrigerators with reversible doors allow customization for right-or-left handed access. These can also be useful for kitchens where the fridge area is tight against a wall or cabinet.
Style and finish: Ideally your refrigerator will be with you for many years, so it is important to pick a style that will match your kitchen design and compliment your changing tastes. Stainless-steel finishes are very popular, albeit slightly more expensive. Black, white, and bisque are the most common refrigerator colors, and trim kits are available that can make a freestanding unit appear more like a built-in model.
Microwave Ovens
If you use your microwave for more than just preheating or thawing, it might be time to upgrade your current model. Today's latest versions come with a wide variety of settings and features that can let you cook entire meals in mere minutes.
Size: Microwaves now come in a variety of sizes and power levels. Choose a size that best fits both your counter/cabinet space and the sizes of cookware that you typically use in the microwave.
Compact - 18" wide x 12" high x 14" deep (less than .8 cubic feet capacity), 500-800 watts power;
Midsize - 20" wide x 12" high x 14"deep (.8 - 1.2 cubic feet capacity), 800-1000 watts power;
Large/full-size - are 20" wide x 12" high x 20" deep (.8 - 1.2 cubic feet capacity), over 1000 watts power
Built-in microwave spaces:
Over-the range models are full size ovens designed to be placed above the stovetop, including a vent feature. These microwaves free up counter space and place the microwave at a convenient eye level. If your kitchen features a built-in microwave area for, make sure to accurately measure the space when comparing models, including some buffer room.
Convection: New combination microwave/convection ovens let you cook in either microwave only, convection only, or combination convection/microwave mode. The convection feature crisps and browns foods in ways that microwave cooking alone cannot.
Turntable: Turntables rotate food for more even cooking, and can be removed for easy cleanup.
Noise: If possible, test out the noise output of several models. Some powerful models can be fairly loud.
Contents courtesy of RE/MAX of Indiana Monthly Newsletter
Thursday, July 9, 2009
Buying Real Estate In Bloomington, Indiana
Something Old, Something New: Tips for Today's Buyer
With the recent shakeup in real estate markets across the country comes a new world - one that includes fewer exotic home loans, greater regulation, new pricing and different expectations of home appreciation. Ironically enough, the freshest advice for today's potential home buyers lies in sound fundamentals their grandparents may have used when purchasing their own homes decades ago.
Below are time-honored home buying essentials that apply now more than ever (with a new-school tip thrown in for good measure):
Save Up to Pay Down - The tradition of the down-payment is almost as old as real-estate itself, yet home loans with no money or very little money down became increasingly popular during the start of the decade. Changes in the credit market have made such arrangements all but nonexistent today, and in many cases buyers won't be considered for a loan without at least a 10% down payment waiting in the wings.
In reality, buyers who invest at least a 15% to 20% down payment will be rewarded as markets re-stabilize. A larger down payment provides the buyer with a lower interest rate, lower payments, higher equity and a stronger negotiating position when it comes to refinancing.
Borrow Smarter - Lenders will employ a variety of different metrics to determine how large of a loan and monthly payment you qualify for, but ultimately you must determine a realistic monthly budget. Qualifying for a home doesn't necessarily mean that you can truly afford the payments in the real world. Start the home buying process off right by determining exactly what kind of mortgage payment you can afford, leaving yourself enough buffer to deal with life's little surprises.
Focus on Your Market -
It's easy to be distracted by national housing headlines, but real estate has always been centered on very specific local market conditions. What is true in one area is not the case in another, sometimes down to the street level. Rather than paying too much attention to trends in distant cities and markets, keep your eyes squarely on the dynamics close to home: local sales prices, average number of days on market, foreclosure rates, and the relative health of the job market in the area.
Buy the Home That Fits Your Life (Not Someone Else's) -
It may seem rudimentary, but the purchase of a house is first and foremost a very personal process of choosing the place that you will call home. The unsustainable appreciation in previous years has caused many to focus on real estate as an investment, a commodity that must be purchased with an eye primarily on resale value. Put simply, we have collectively developed the mentality of "the flip."
The truth is that the home you buy is much more than an asset with four walls and a breakfast nook. There is no guarantee in any market that you will be able to turn around and sell your house for a handsome profit. By remembering that you are buying for your family and not the buyer three or five or seven years from now, you ensure that you end up with your home, not just a residence.
Make the Internet Work for You -
Information has always been tantamount to power, but today information moves at a faster speed than ever before. If you aren't using the Internet as a major part of your buying strategy, you're already at a disadvantage to shrewd home buyers who use the power of the web to research and compare listings. Setting up online home searches, saved favorites or new listing email updates is easy, regardless of your computer know-how. The more knowledge you have at your fingertips, the better prepared you will be moving forward.
Contents compliments of REMAX International LeadStreet Newsletter (July, 2009)
With the recent shakeup in real estate markets across the country comes a new world - one that includes fewer exotic home loans, greater regulation, new pricing and different expectations of home appreciation. Ironically enough, the freshest advice for today's potential home buyers lies in sound fundamentals their grandparents may have used when purchasing their own homes decades ago.
Below are time-honored home buying essentials that apply now more than ever (with a new-school tip thrown in for good measure):
Save Up to Pay Down - The tradition of the down-payment is almost as old as real-estate itself, yet home loans with no money or very little money down became increasingly popular during the start of the decade. Changes in the credit market have made such arrangements all but nonexistent today, and in many cases buyers won't be considered for a loan without at least a 10% down payment waiting in the wings.
In reality, buyers who invest at least a 15% to 20% down payment will be rewarded as markets re-stabilize. A larger down payment provides the buyer with a lower interest rate, lower payments, higher equity and a stronger negotiating position when it comes to refinancing.
Borrow Smarter - Lenders will employ a variety of different metrics to determine how large of a loan and monthly payment you qualify for, but ultimately you must determine a realistic monthly budget. Qualifying for a home doesn't necessarily mean that you can truly afford the payments in the real world. Start the home buying process off right by determining exactly what kind of mortgage payment you can afford, leaving yourself enough buffer to deal with life's little surprises.
Focus on Your Market -
It's easy to be distracted by national housing headlines, but real estate has always been centered on very specific local market conditions. What is true in one area is not the case in another, sometimes down to the street level. Rather than paying too much attention to trends in distant cities and markets, keep your eyes squarely on the dynamics close to home: local sales prices, average number of days on market, foreclosure rates, and the relative health of the job market in the area.
Buy the Home That Fits Your Life (Not Someone Else's) -
It may seem rudimentary, but the purchase of a house is first and foremost a very personal process of choosing the place that you will call home. The unsustainable appreciation in previous years has caused many to focus on real estate as an investment, a commodity that must be purchased with an eye primarily on resale value. Put simply, we have collectively developed the mentality of "the flip."
The truth is that the home you buy is much more than an asset with four walls and a breakfast nook. There is no guarantee in any market that you will be able to turn around and sell your house for a handsome profit. By remembering that you are buying for your family and not the buyer three or five or seven years from now, you ensure that you end up with your home, not just a residence.
Make the Internet Work for You -
Information has always been tantamount to power, but today information moves at a faster speed than ever before. If you aren't using the Internet as a major part of your buying strategy, you're already at a disadvantage to shrewd home buyers who use the power of the web to research and compare listings. Setting up online home searches, saved favorites or new listing email updates is easy, regardless of your computer know-how. The more knowledge you have at your fingertips, the better prepared you will be moving forward.
Contents compliments of REMAX International LeadStreet Newsletter (July, 2009)
Tuesday, March 10, 2009
Understanding the Housing Recovery Plan
The recently announced Homeowner Affordability and Stability Plan is a sweeping effort to stem the national tide of foreclosures and to help as many as 9 million homeowners stay current on their mortgages. Here's a look at what the plan will entail and who will be eligible for assistance.
Basics of the Plan
The nationwide foreclosure problem has caused a ripple effect of lowering home values throughout individual communities. The Obama administration's plan marks the largest government response since the beginning of the housing crisis. At its core are three main strategies:
1. Secure refinancing for as many as four million responsible homeowners, with the goal of making monthly payments more affordable
2. A $75 billion stability initiative to encourage lenders to modify loan terms for three to four million mortgages at risk of foreclosure or already in foreclosure.
3. Additional financial support for Fannie Mae and Freddie Mac.
Housing Affordability
Under traditional rules, homeowners who owe more than 80 percent of their home's value cannot easily refinance their mortgage. Many homeowners who have paid money down and are current on their monthly payments have seen their home's value drop enough that they lack the necessary equity to qualify for refinancing.
Under the Housing Affordability and Stability Plan, qualifying homeowners would be able to refinance their mortgages to current rates, making monthly payments more affordable. For those borrowers who are currently facing high rates following an ARM reset, the plan offers a chance to switch to a lower fixed rate mortgage.
Who Qualifies - In order to qualify for this portion of the plan:
Borrowers must have mortgages guaranteed by Fannie Mae or Freddie Mac.
Homeowners must owe more than 80 percent of their home's current appraised value.
Homeowners must not owe more than 105 percent of the home's current appraised value.
Borrowers must be current on monthly mortgage payments.
Homeowners with second mortgages will also be eligible but with additional restrictions. Along with the 105 percent limit, borrowers must be able to prove that they can still meet payment terms on the original loan and the lender must agree to keep the original loan in "primary position" in terms of monthly payments.
Who Doesn't - While some details of the plan have not yet been released, initially it appears that the following groups of borrowers may not qualify for this portion of HASP:
Borrowers who owe significantly more money than their home is worth.
Most borrowers whose mortgage exceeds the $417,000 conforming limit.
Housing Stability
The second portion of the plan is designed to provide relief to homeowners whose loan payments have risen to 40 or even 50 percent of their monthly income. The plan's goal is to reduce the total monthly mortgage payments for struggling homeowners. To do so, the Financial Stability Plan has allocated a total of $75 billion in incentives that should encourage lenders to modify loan terms.
Some components of the plan include:
Shared Modification Responsibility: lenders will be responsible for modifying loans so that the borrower's payment is reduced to 38 percent of their monthly income. Following that point, the initiative will match further reductions dollar for dollar down to 31 percent.
"Pay for Success" Incentives for Servicers will be awarded when borrowers stay current on a modified loan, in addition to an up-front incentive paid at the time a loan is modified under the program's guidelines.
Borrower Incentives will entail a monthly balance reduction payment applied to the loan's principal as long as the borrower remains current on payments/
Early action incentives will include payments to both the servicer and borrower when an at-risk loan is modified before payments become delinquent.
Who Qualifies -
Borrowers whose combined mortgage balance exceeds the current market value of the home
Individuals with high debt/income ratios
Who Doesn't - The administration has indicated that the following categories of borrowers will not qualify for this portion of the plan:
Borrowers who do not live in the home
Speculating investors or home flippers
Borrowers whose mortgages exceed the Fannie Mae/Freddie Mac conforming limits
Support for Fannie and Freddie
Using money authorized by congress in 2008 under the Housing and Economic Recovery Act, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac by $200 billion total. Specifically, Treasury will increase Preferred Stock Purchase Agreements to $200 billion each (from the previous level of $100 billion each).
The overall goal behind this move is to increase confidence in the two mortgage giants and by doing so support the continuation of low mortgage rates.
Other Provisions in the Plan
$1.5 billion in relocation and other assistance for renters displaced as a result of landlord foreclosure.
$2 billion in neighborhood stabilization funds.
Information Courtesy - REMAX Of Indiana Newsletter
The recently announced Homeowner Affordability and Stability Plan is a sweeping effort to stem the national tide of foreclosures and to help as many as 9 million homeowners stay current on their mortgages. Here's a look at what the plan will entail and who will be eligible for assistance.
Basics of the Plan
The nationwide foreclosure problem has caused a ripple effect of lowering home values throughout individual communities. The Obama administration's plan marks the largest government response since the beginning of the housing crisis. At its core are three main strategies:
1. Secure refinancing for as many as four million responsible homeowners, with the goal of making monthly payments more affordable
2. A $75 billion stability initiative to encourage lenders to modify loan terms for three to four million mortgages at risk of foreclosure or already in foreclosure.
3. Additional financial support for Fannie Mae and Freddie Mac.
Housing Affordability
Under traditional rules, homeowners who owe more than 80 percent of their home's value cannot easily refinance their mortgage. Many homeowners who have paid money down and are current on their monthly payments have seen their home's value drop enough that they lack the necessary equity to qualify for refinancing.
Under the Housing Affordability and Stability Plan, qualifying homeowners would be able to refinance their mortgages to current rates, making monthly payments more affordable. For those borrowers who are currently facing high rates following an ARM reset, the plan offers a chance to switch to a lower fixed rate mortgage.
Who Qualifies - In order to qualify for this portion of the plan:
Borrowers must have mortgages guaranteed by Fannie Mae or Freddie Mac.
Homeowners must owe more than 80 percent of their home's current appraised value.
Homeowners must not owe more than 105 percent of the home's current appraised value.
Borrowers must be current on monthly mortgage payments.
Homeowners with second mortgages will also be eligible but with additional restrictions. Along with the 105 percent limit, borrowers must be able to prove that they can still meet payment terms on the original loan and the lender must agree to keep the original loan in "primary position" in terms of monthly payments.
Who Doesn't - While some details of the plan have not yet been released, initially it appears that the following groups of borrowers may not qualify for this portion of HASP:
Borrowers who owe significantly more money than their home is worth.
Most borrowers whose mortgage exceeds the $417,000 conforming limit.
Housing Stability
The second portion of the plan is designed to provide relief to homeowners whose loan payments have risen to 40 or even 50 percent of their monthly income. The plan's goal is to reduce the total monthly mortgage payments for struggling homeowners. To do so, the Financial Stability Plan has allocated a total of $75 billion in incentives that should encourage lenders to modify loan terms.
Some components of the plan include:
Shared Modification Responsibility: lenders will be responsible for modifying loans so that the borrower's payment is reduced to 38 percent of their monthly income. Following that point, the initiative will match further reductions dollar for dollar down to 31 percent.
"Pay for Success" Incentives for Servicers will be awarded when borrowers stay current on a modified loan, in addition to an up-front incentive paid at the time a loan is modified under the program's guidelines.
Borrower Incentives will entail a monthly balance reduction payment applied to the loan's principal as long as the borrower remains current on payments/
Early action incentives will include payments to both the servicer and borrower when an at-risk loan is modified before payments become delinquent.
Who Qualifies -
Borrowers whose combined mortgage balance exceeds the current market value of the home
Individuals with high debt/income ratios
Who Doesn't - The administration has indicated that the following categories of borrowers will not qualify for this portion of the plan:
Borrowers who do not live in the home
Speculating investors or home flippers
Borrowers whose mortgages exceed the Fannie Mae/Freddie Mac conforming limits
Support for Fannie and Freddie
Using money authorized by congress in 2008 under the Housing and Economic Recovery Act, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac by $200 billion total. Specifically, Treasury will increase Preferred Stock Purchase Agreements to $200 billion each (from the previous level of $100 billion each).
The overall goal behind this move is to increase confidence in the two mortgage giants and by doing so support the continuation of low mortgage rates.
Other Provisions in the Plan
$1.5 billion in relocation and other assistance for renters displaced as a result of landlord foreclosure.
$2 billion in neighborhood stabilization funds.
Information Courtesy - REMAX Of Indiana Newsletter
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