Buying Wooded Land

   

 Hi Prospects & Friends!

Buying wooded land, can be a wise investment if you research the land in depth, and understand some of these key factors will play major roles;

• Is the land unrestricted or restricted?
• Does the land have a HOA?
• What are the yearly taxes?
• Is the land in a flood zone?
• What are the zoning and ordinance rules?
• Is the land classified as residential or commercial? 

Those are just a few key factors listed, but apply due diligence, and you will know when you do your decision will be well thought out thoroughly. For example, a wooded lot can be appealing to one who sees beyond the woods, and takes immediate note the grass doesn't have to be cut, since it's wooded, but another could see the woods as an eye sore, and any vision beyond the woods can't form since it's not cleared and will have an expense to clear it. Everyone is different, but researching wooded land in depth before you buy it is the key. 

 

Not All Real Estate Is Affected By Economy

      

 Hi Prospects & Friends!

When macroeconomics take place in the economy, these factors don't affect the real estate all in the same way. For example if you bought some land before the developers and builders discovered it, and this land was already underpriced, the macroeconomics won't affect your situation when sell, because of the developers and builders discovering after you, since their discovery will drive up the prices no matter if the macroeconomics are good or bad, if the land is scarce elsewhere, but yours isn't. Understanding the economy as a wider prospective, than just your market can deliver some triple plus returns if you apply macroeconomics to your real estate endeavors. In conclusion our economy is not showing consistent positive macroeconomic factors, but as long as you;

• Understand your property beyond your market by applying macroeconomic factors as a broader prospective 
• Analyzing the economy as a broader whole than just your local economy 
• Realizing key factors from what the president says on bad market trigger days 

You will be able to continue on with your real estate endeavors and not get affected much by any of those issues. 

 

Property Taxes

 

 Hi Prospects & Friends!

Property taxes come with every residential and commercial property some examples are;

• Homes
• Condos
• Apartments
• Land
• Shopping Centers
• Malls
• Banks
• Stores
• Offices
• Restaurants 
• Townhomes 
• Mobile Home Parks
• Mini Warehouses
• Storage Facilities 
• Schools
• Colleges

The examples listed above, are some of the residential and commercial properties that have property taxes. Their are cases where these same properties listed above might have property tax exemptions to pay no property taxes, whether be for government purposes or charity purposes,  but either way majority of the population does pay property taxes. 

Does Inflation Effect Real Estate?

 Hi Prospects & Friends!

Inflation can effect real estate, in different ways. Some ways maybe;

• Higher interest rates on the mortgages, for the real estate bought, whether residential or commercial.
• The DOM "days on market" number climbing higher, causing the real estate to sit longer on the market.
• Remodeling costs costing more for renovating the real estate.
• Demand slowing down from the buyers, buying the real estate, because of the higher interest rates, the expensive renovation costs, and the DOM.

The examples listed above, are some inflation factors that can affect the real estate. Best thing to do when wanting to buy real estate when inflation is high, is do your due diligence by researching what maybe causing the property you're trying to buy to get affected, and then proceed with whether it's worth it to continue forward with your search for buying the real estate, or the sell of your home. 

Repair Fees

  

 

Hi Prospects & Friends!

If you're renting a place from your landlord, make sure you understand, and are fully aware of the repair fees specified in your lease agreement. Doing this task before you sign the lease, helps you understand your responsibility from costly repair fees you will be responsible for from your neglect, as well as from damage caused by you, with the rental property you are renting. The lease you sign will specify the repair responsibilities from the landlord, as well as the repair responsibilities from the tenant. Every landlord and property manager have different repair specifications specified in their leases, so make sure you understand them, and your responsibilities to any neglect as well as damage caused by you.

Mortgage History

 

 

Hi Prospects & Friends!

Mortgage history means all the types of mortgages you've been approved for that were reported on your credit report, which you've made payments to with the lender. Understand if the mortgage history you develop with these lenders turns negative from the payments, any new lenders if view your credit report will require you to pay higher interest rates, if you're not paying the mortgage in cash. Paying cash can become costly if you don't have it, so keeping your mortgage history positive will help greatly avoiding these costly mortgage issues.

What Is A Buy/Hold Strategy?

  

Hi Prospects & Friends!

Whether you're analyzing residential or commercial properties, certain properties make more sense to use the buy/hold strategy. A buy/hold strategy is a technique applied, when a property makes more sense to just hold it to reap the profits longer term. These properties maybe;

• Raw land
• Revitalizing communities
• Rental properties 
• 1031 Exchanges
• Apartments

All properties are very different, and carry different characteristics, and when applying this to economical factors, the buy/hold strategy comes into play immediately when these key factors join together. A buy/hold strategy wouldn't make sense if you're needing the appreciation and the equity from the properties immediately short-term, since you would also trigger capital gains taxes, and recaptured depreciation disposing the property short-term. Buy/hold strategies also don't work great for everyone, since you need to know in advance how long to hold the property, before you purchase it. Best key factor to decipher is know why you're buying the property, and then apply this to the economical factors to see if it falls better in a buy/hold strategy.