Monday, July 24, 2006

5 Useful Tips in Buying a House

Buying a house is a very serious matter that comes in to people’s lives. It is very risky to invest your money in buying just any house you find. You must have some guidelines that can help you decide which house is the best for you. Here are some:

1. Determine your rights

When you are ready to buy your own house, be sure you understand your rights as a homebuyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.

2. Make sure you can afford it

Your budget is really a big deal in buying your own house. What you want is different from what you need, so be practical. You don’t really need a big house if you’re just one person that travels everyday, right? Make sure that you make the best for your money. Seek help or ask for suggestions especially for those who have knowledge in real estate prices. If you can’t stay for at least a year, buying a house is inappropriate for you. You may save a whole lot more of money if you sell it urgently.

3. Make sure it fits your lifestyle

Make your house a home. Be sure it really fits your way of life and you are comfortable with it. A good example of this is if you’re working in an office, a good place to find is near or in the vicinity of your office. If you love nature, a good place to find is outside the city with clean air, near parks, has a mountain view or near at the beach. Your personality really matters in finding a good house. Make sure to look at its suburbs first and try to gather some information about the area and its surroundings. Try also to consider the kind of neighbors you will have.

4. Consider your future plan

If you’re newly married, you might to consider how many kids you want to have. You can assume the number of rooms or the home space you need. If you can afford a house that is near to a good school, it is better. School districts are more important to home buyers, therefore, it will increase your property values.

5. Be organized

It is very important to make your document files organized and safe. Because it will prove that you own the house. It will help you a lot especially when it comes in paying your house payments (taxes and amortization).

Ester is one of the SEOs of and takes care of the Ozfree Online Real Estate Page where in it offers a comprehensive list of office & commercial real estates, homes for rent or sell and an apartment finder to thousands of properties in Australia. For more information, visit

Wednesday, July 05, 2006

What's the Difference between Stock Market and Real Estate Investing?

It may not seem obvious to many people, but the strategies involved in real estate investing and stock market investing are different from each other. Many people, disenchanted with the lackluster performance of their stock portfolio, first become interested in real estate investing after someone they know makes a large sum of money in real estate in a relatively short time.

If that sounds like YOU, be warned: investing in real estate in the hopes that the market will increase rapidly and steadily is, and always has been, a risky strategy, and can cause severe difficulty if you guess wrong about a piece of property--or if the entire real estate market begins to collapse, as has happened many times in the past.

If you can afford to buy real estate and hold on to it for five to fifteen years, you will nearly always realize a substantial profit. If you are savvy enough to buy a significantly discounted piece of property and then sell it within a year, you'll make money, too. But buying an investment property at its fair market value that only gives you a break-even cash flow (or worse yet, loses money every month) can sink you in a relatively short time if you don't have the wherewithal to feed it until you CAN make money on it.

It's like riding a horse. If you don't know how to ride, you'd better take some lessons before you sign up for a rodeo! The results could be disastrous if you make a mistake. And if you haven't done your homework, you WILL make a mistake. The wrong real estate investment could cause not just financial hardship, but also financial ruin.

So know your real estate market, inside and out. Know where it is in its overall cycle, because all markets, no matter how hot, have ups and downs within the overall trend. There are always bargains available, regardless of the market. Watch your local housing market so you know how much rental income to expect and if there is a vacancy glut on the market. Two years ago you could buy an apartment building in Las Vegas for zero down because investors couldn't rent the apartments. Some investors who could afford to make up the negative cash flow each month made a killing in appreciation. Investors with financing or cash who transformed the apartments into condominiums made even more money.

Finding the lowest-priced financing also helps make the most return on your investment. Unlike stock investing, you need strong credit to use other people's money to finance investment property.

Even if you're frustrated by a lackluster stock market, don't expect to make a short-term killing in real estate to make up for it. In both cases, one of the best strategies is to buy excellent examples--and then hang on for awhile. It's also a good strategy to maintain a cash reserve, especially when it comes to real estate. That way, even if the market heads south, you won't find yourself being overwhelmed while you wait for the inevitable rebound in prices.

Real estate investing can carry more significant consequences than stock market investing if you guess wrong, since there's generally a great deal more money involved. So take it easy, do your homework, and don't rush into anything until you've learned as much as you can about how to become a prudent real estate investor.

This article was posted at on 2003-12-20. Webmasters and publishers are free to reprint this article as long as the resource box and all the links remain intact.