Florida Real Estate Blog

Whether you like it or not, the real estate market has ground to a slow trot. Selling a home can be difficult and requires you to return to the time-tested basics of selling a home. Here are some keys to remember and use.

1. Make your home available. It would probably help to just accept that your home is in the public domain from 9 A.M until 9 P.M. daily until it’s sold.

2. When you are selling your home, keep it clean and tidy ALL the time. Let it get out of hand and an otherwise serious buyer WILL show up. If you don’t have time to clean, hire a cleaning service.

3. If you have a limited budget for sprucing up your home, consider devoting a good chunk of it to getting your kitchen in top shape. Consider replacing appliances and fixtures. Whatever steps you take, just make sure your kitchen is in top shape.

4. With the fluctuating home prices we are currently seeing, buyers can have problems getting financing regardless of their credit. Don’t drop the buyer! Instead, offer him or her a second mortgage.

5. When analyzing homes for sale in an area, it is important to focus on the correct numbers. Typically, you want to throw out any home that has a distinctly higher or lower price than the other homes unless there is something unique about it.

6. When searching for homes, buyers focus on those they can see. Regardless of where or how you market, you must include home photographs in your marketing material.

7. Buyers aren’t a dime a dozen but they are out there. Showing flexibility can make your property more attractive than the competition. Be willing to vacate quickly for a qualified buyer who wants it.

8. Most states require real estate contracts to be in writing to be enforceable. The buyer invests time and thought in the process of committing his offer to paper. When you receive his written offer, you know ALL the items the buyer is trying to “nibble” from you.

9. Whether buying or selling, you will want to take a close look at comparable homes in the neighborhood. Do not pay much attention to the listed prices. Homes do not sell for the listed price. Focus on the actual sales prices of recently sold homes.

10. Many people work so hard to get an offer on their home that they do not know what to do once they get one. Your choices are to accept it, reject it or make a counter offer.

The funny thing about the real estate market is it is always active. If you listen to the news, you would swear not a single home was being sold these days. In truth, hundreds of thousands of them are and yours will be next if you follow the above advice.

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At the beginning of this decade, you could sell your home without even putting it in MLS. My, how things have changed. Now you practically have to beg a buyer to make an offer. If your property isn’t generating interest, what can you do?

When a real estate market goes cold, it can seem like there are no homes being sold at all. This is incorrect. There is just a lot of competition for the attention of a small pool of buyers. To get their attention, you need to do some unique things.

The first step is to play up your neighborhood. Location, location, location. It is the first rule of real estate and everyone knows it. So, make sure you list the attributes of your neighborhood when putting your marketing together.

There seems to be one owner in every neighborhood. Their yard is a jungle or completely dead. You can complain, but it rarely gets anything done. The answer? Offer to have it done. You’ll make it back on the sale of your home.

Step back from your pricing. Look around the neighborhood. Are there comparable homes listed for less, even a few thousand dollars less? If so, you need to cut your price. You don’t need to beat the fixer upper on the block, just those similar to your home.

Obviously, the comparable homes in a neighborhood are not all the same. If yours is slightly better, pricing at the lower end of the listing range can be hard. Do it! Most sellers will group the homes together and not notice your fine points.

Given this, many homeowners just can’t bear to cut their price. Are their homes destined to sit on the market? Nope, but you must aggressively market the differences that make your home superior to comparable ones.

If the idea of lower your price is extremely aggravating, there is another approach. You can try to offer terms that entice buyers. This can include everything from seller financing to the payment of certain costs at closing.

The last step you can take is to make improvements to your home. There can often be a fatal flaw you might not notice since you live at the home. Ask friends to give the home the once over as though they were looking to buy the property. See what they say.

When in doubt, small improvements can also make a world of difference. Clean your driveway. Paint rough spots and around window frames. Remove the clutter in the garage. In short, give your home a tune up.

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Companies often decide that they can operate more efficiently and more cost effectively in another town or sometimes in another country. It is quite common that they either hire a new staff in that town or take their employees along. If you are one of the lucky ones that was giving the option of going, that may not be such an easy choice to make.

The first question you need to consider is considering what the cost of living is in the new town that you will be moving to. The second question you need to think about is what the quality of life like there is for your kids and pets, and finally, what are the job opportunities for your spouse? remember its not only you that needs to make that transition and it generally will not be an easy one.

If you feel excited about the opportunity then this will be a good thing for you. When you like something then transition will be easier. If you don’t have a spouse or kids to worry about then the process is even easier. You may even decide to make a change all on your own and relocate to a new city from within your company.

There are so many resources on moving and relocating available to you over the internet that will help you decide how to pack and move, if you should go, and where to relocate for your career that you can thrive in. Being prepared for what lies ahead is your best bet. Never leave you or your family unprepared. If you have small kids then let them find where the zoo is to give them something to look forward to.

Finally, it doesn’t matter if you relocate to DC, Seattle or NYC that job will now be located in a whole new city. You must pick up your family, find a home, find schools for your children and move to a strange place. This will be a very strange and stressful time for everyone involved. try to be understanding and patient with everyone involved.

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If you are looking for a stable investment that does not require too much oversight in which to place some of your IRA’s funds, a storage facility can be a great option. Because there are some recurring expenses however (like the electric bill and labor costs), a self-directed IRA is usually preferable for this type of investment. If you have to pay custodial fees every time your IRA pays the electric bill, your profit margin can decrease significantly.

Storage facilities also usually have fewer associated costs than do properties that will be occupied by people rather than things. Operating costs for a storage facility are far below the operating costs of resort hotels or office towers. Non-recurring costs like repairs and renovations are also usually spaced much farther apart and are usually less costly. On the other hand, rental prices per square foot can be less, too.

Though not as glamorous as investing in a tropical resort hotel, storage facilities can return strong profits on smaller initial investments. Storage properties benefit from a relatively high demand in urban centers and in outlying metropolitan areas where competition may not be as great. A nearly unavoidable fact of life is that as families grow and as individuals start to make more money, their volume of possessions increases while their available storage space decreases.

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If you were to be asked to describe and give a definition for the word mortgage, would you be able to, because it is surprising how few people know what they really are. The worst thing to call one is a mortgage home loan and while this expression is in common usage, it is totally incorrect. The mortgage is a legal contract between the mortgagor who is buying the property and the mortgagee, the person supplying the finance and security against the property. This is in fact the document which ensures the financing of the property is safeguarded until the end of the term, usually twenty five years.

If it wasn’t for the availability of mortgages, individuals and businesses would need to find the full amount for a property in order to purchase it. To help understand how this works, some important information is discussed here. Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. The property has a lien, which is the legal ownership of the property by the mortgagee until the agreement between the two parties has been fulfilled.

The mortgagee’s money is then protected by this knowing the property is in fact security against its own debt. The lien (document) is normally recorded at the local courthouse in the public records section. The lien stays in force while the debt remains but the property is actually owned by the mortgagor. This is a strange situation where the mortgagor still owns the property even though the debt still remains to be paid.

The mortgage is a surety for the benefit of the mortgagee, so should the debt remain unpaid then the amount owed can be reclaimed by the sale of the property. In the unfortunate event that requires the property to be sold or Foreclosed, then the case will need to be presented to the courts for approval. To ensure that everything is legal and above board, the court will place a ruling on the disposal in a process called judicial foreclosure. Obviously there is much more to the subject than this, but these are the basic foundations upon which the mortgaging system has been constructed.

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Linda and her husband are from Texas and had been approved for an FHA loan on a single family residence. Their lender had told them that they needed two months reserves in the bank at closing or the loan would not close. They were confused by this requirement and came to me for clarification.

I was confused too! FHA does not have a requirement for reserves (unlike conventional loans). The only reserve requirements for an FHA mortgage is if a buyer is purchasing a 3-4 family unit. In that case the reserves required would be three months.

The answer here was simple and is actually available on HUD’s website. There is however, a bigger issue here. Bear with me, here is another example.

A young couple was approved for an FHA mortgage in early March of 08 and the company they were working with said they had to pay their 2007 taxes before the lender would close the loan. Hello, … 2007 taxes aren’t due until April 15, 2008. The wife asked if there was a law stating this. Well, NO! I don’t think so! There is not even an underwriting guideline that calls for it.

What is going on here? Can you see the big issue yet?

I answer mortgage questions from home buyers, sellers, real estate agents, loan officers, and yes, even underwriters. The underwriters and loan officers are from some well know companies. I get this type of question every day from all over our country, India, and other countries in the middle east.

I see several issues with this information so far but I’m only going to cover two.

Why don’t Loan Officers and Underwriters know basic FHA underwriting guidelines? Because they have little or no experience/training on FHA guidelines! FHA mortgages are and always have been a great option for people that don’t quite fit into conventional guidelines. The FHA interest rate is considerably lower compared to a sub-prime loan. As I write this the FHA interest rates are equal to par on a Fannie Mae. It doesn’t get any better than that!

FHA loans are vary complicated to put together and they used to have unusual appraisal and inspection requirements. So in the past if a borrower didn’t fit into Fannie or Freddie it was just easier and quicker to slap him into a sub-prime loan. It was a slam dunk and like, … so what if the rates were higher on a sub-prime, few consumers understood their options anyway. That mentality is why I built my site in 2002.

Another reason companies didn’t do FHA loans was because they had to be HUD approved which meant they had to have a minimum net worth and pass a costly Audit every year. So again, why bother when sub-prime was so easy and available.

The sub-prime days are almost a thing of the past or at least not as available as they use to be. The savior? … FHA Loans of course. The problem is that very few mortgage professionals, including underwriters have much experience with FHA or understand the differences between FHA and Fannie. Thus, in the two examples above, underwriters and LOs are just making stuff up or worse case, running scared because of all the flack in the industry right now.

In defense of the underwriter (as in example two) I will say that they have the authority to require what ever they deem necessary to improve a portfolio. Many of the questions I have received from underwriters seem to reveal that it is really a case of inexperience and over caution.

The mortgage industry professionals are struggling to catch up/learn FHA guidelines. If you are a consumer you must be very careful to find someone that has been HUD approved for at least two years. And Do Check, seriously. Some companies are doing FHA loans and they are not HUD approved. They are under the disillusionment that HUD will allow a non-HUD approved broker, to broker, to another HUD approved broker! Sounds a little flaky, no?

How in the world did we ever get in this mess? We can throw some of the blame to the politicians and presidential candidates that are hyping it up for their own agenda. It is not as bad as they say but they are speaking so loudly that the rest of the world is now listening. Did you read what is going on in the UK’s market today? Good grief.

I don’t believe in bailing out our large lending companies and here is why. Back in this article I mentioned getting questions from India and other countries in the middle east. Now I ask myself, why would a mortgage underwriter in India, who I can hardly understand due to “no speaking good English”, be calling me on the telephone at 3:00am about a loan in Texas??

Does that make you stop and think?

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Despite increasing numbers of the population having a mortgage, it is amazing how few people actually know what they are and how they work. Some people have gotten into the habit of calling them mortgage home loans but that isn’t right at all as they are not loans at all. There are three terms that you need to learn that are used: the first is mortgagor (the property owner), the mortgagee (the company that takes on the security for the property) and the mortgage (the contract to pay between the two). More accurately, it is a document that protects your lender’s interest with your property itself and a legal agreement you have provided to a lender.

The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. The way this process works is presented in brief detail during the rest of this article. Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. A lien is a means by which the mortgagor can purchase a home but it is the mortgagee that retains legal ownership until the arrangement between them has been completed (the debt is paid off).

This means that the property becomes security against itself and is the protection a mortgagee requires to fulfill his promise of funding. This lien than becomes a matter of public record when it is registered at the county courthouse or equivalent. The lien stays in force while the debt remains but the property is actually owned by the mortgagor. While the mortgagee has legal possession of the property, he does not own it or have the title to it, the legal owner is the mortgagor.

The only time the mortgagee has any rights over your property is in the event that you default on payments when he can sell it to recover the outstanding debt. In the unfortunate event that requires the property to be sold or Foreclosed, then the case will need to be presented to the courts for approval. This is done in order for it to be considered legal; this type of foreclosure is referred to as a judicial foreclosure. If you were unsure about the definition before and the subject surrounding it, I trust this information has been of use.

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For many home buyers, the only real decision they have to make is whether to have a 15 or 30 year fixed mortgage rate? Buying a home later in life means that many people want to have the mortgage paid off early. Although before signing any documents, there are many things to consider. Ensuring the repayment remains the same throughout the mortgage term is very important.

Steer clear of lenders that are offering unbelievable deals because they probably are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.

The plan was to pay off the house as soon as possible but we didn’t want to be burdened with high monthly payments. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. The 15 year fixed mortgage rate was the plan we really wanted because neither of us wanted to be still paying a mortgage when we close to retiring. Too much pressure was placed on the early repayment of the mortgage loan.

We thought about it long and hard and despite the pressure we decided to go with the 30 year loan plan. There were many things that lead us into making this choice. Finding out my wife was having a baby made making the choice so much easier! As she intended to raise our child at home we couldn’t rely on her financial income to the monthly expenditure. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. For us it just wasn’t feasible as we would just be in over our heads. A thirty year loan brought the monthly payments down to a reasonable level.

Making a few additional lump sum payments during the year helps bring down the amount owed. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. In the long term, this is a strategy well worth pursuing if you are able. Our first choice would have been to go for the short term 15 year fixed rate mortgage solution but this did not help with our more immediate situation. All things considered, it all worked out for the best in the end.

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Selling your own home is never easy and with today’s falling market it is even more difficult. Selling you home quickly for what it is worth may be the most challenging predicament yet. Most people have a fair amount of emotional attachment and this means you not only want your home to sell quickly but you have in mind a type of person you would like to buy your home. Not to mention all of that you want to get from your home what it is worth. Below are a few tips that can help you to move toward selling your home quickly and profitably.

- All the legal issues such as property disclosures and other documentation should be in order and available before you begin to sell your house. State laws differ and it is recommended that you invest in an attorney to ensure you have met all requirements.

- Selling your home means creating a contract form and having an attorney on hand makes this step easier as well. The contract helps to protect both the seller and the buyer.

- Often discounted a very helpful tip in selling your home is by picking the best picture to advertise with. Picking out the best angle, the best season that really sets your house apart is an effective tip in selling your home.

- Chances are you are fairly inexperienced in selling homes. Not everyone who comes to see the house is able to finance and many potential buyers come in hopes for flexible financing options. Find out everything about every potential buyer; can they buy immediately or will they need to first sell their existing home?

- Most people know to make sure their home is clean and presentable before a showing; however, quite a few possible buyers will do a drive-by first and get a first impression. If the first impression does not impress them they may not stick around for a second look. Making sure your lawn is cut and at least the front part of the house is groomed is essential to giving your home curb appeal. Think about placing potted flowers in front; this greatly adds to the look of your home and makes it appear welcoming.

These tips on selling your own home came from people who managed to sell their house successfully. There’s a lot to consider before you take every next step, so take your time. And remember, it’s useless to do the selling on your own if the revenue taken from not hiring an agent is spent heavily on fixing your own mistakes!

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First you should weigh the costs and benefits of mortgage refinancing to determine if you’ll come out ahead. Your mortgage may have a 30-year term, but not many homeowners stay with the same loan for that long. In fact, the average American refinances his or her mortgage every four years, according to the Mortgage Bankers Association. That’s because paying off your present mortgage and taking out a new one can mean big savings over several years. However, mortgage refinancing comes with a price in the short term, so it’s important to consider both the costs and benefits before making your decision.

Why refinance? Here are some reasons to consider mortgage refinancing: To obtain a lower fixed rate. If you took out a fixed-rate mortgage several years ago and interest rates have since dropped, refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month. To switch to a fixed rate or an adjustable rate mortgage. Adjustable-rate mortgages (ARMs) offer lower interest rates initially, but some homeowners find the fluctuations stressful. If rates are on the way up, you might consider locking in at a fixed rate and consistent monthly payment. On the other hand, if you want to reduce your monthly payments and are comfortable with the interest rate changes of an ARM, it could save you money to refinance to an ARM. To improve the features of your ARM. Mortgages with adjustable rates have protective caps that limit how much your payments can increase in any given year and over the full term of the loan. You may be dissatisfied with the caps on your current ARM and feel you can negotiate more favorable features if you refinance. To build your home equity faster. If a recent change in your financial situation has made it possible for you increase your monthly payments, you might want to refinance your mortgage with a shorter term. The higher payments will enable you to pay off your home more quickly and to save substantially on long-term interest charges. However, if you are disciplined you can also opt not to refinance and simply pay more towards your principal each month. To reduce your monthly payments. Refinancing for a longer term will lower the amount you have to pay each month. You will end up paying more in interest charges over the life of your loan, but if you’re having difficulty making your current payments, this strategy could provide some relief. To turn home equity into cash. You may want to take out a new mortgage with a larger principal, in order to turn some of your home equity into cash for a major expense. This is called cash-out refinancing. The advantage of taking out a loan secured by your home is that you can get a lower rate of interest than you can with an unsecured loan or credit card. However, if the interest rate offered for your refinanced mortgage is higher than your current rate, a home equity loan or line of credit might be a better choice. Is mortgage refinancing right for you? If you’re refinancing in order to pay less interest, you won’t usually see the savings right away. That’s because lenders typically charge fees when you take out a new mortgage, and you may also have to pay a penalty for getting out of your old one. To determine whether refinancing makes financial sense for you, consider these issues: How long you plan to be in your home. If you expect to move in a year or two, you may never realize the potential savings you’d get from refinancing. As a rule of thumb, the longer you plan to stay in your current home, the more sense it makes to refinance. The prepayment penalty on your current mortgage. Many mortgages carry a penalty if you pay them off early. The amount varies, but it is usually a small percentage of the outstanding balance, or several months’ worth of interest payments. The costs of the new mortgage. When you take out a new loan, your lender may charge a number of fees including application, appraisal, origination and insurance fees, plus title search, insurance and legal costs that can add up to thousands of dollars. Lenders may also charge discount points, which are paid upfront to secure a lower interest rate. As a guideline, expect fees to eat up any potential savings unless your new interest rate is at least a half a percentage point lower than your current one. The true difference in borrowing costs. When you’re considering refinancing, remember that the posted interest rate doesn’t reflect the entire cost of the mortgage. The amount you pay over the life of the loan will also be affected by the length of the term, whether your rate is adjustable or fixed, whether you paid discount points, and what upfront and ongoing fees you incur. One way to compare mortgage costs is to look at the annual percentage rate (APR), which takes into account not only the base interest rate, but also points and other charges. All lenders must follow the same rules when calculating the APR, so it’s a good basis for comparison. Your reduced tax savings. If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you’ll have less mortgage interest to deduct. You will still save money overall, but your real savings from refinancing may not be as large as you first believed. Consult a tax advisor who can help you understand the tax implications of refinancing.

A good lender will be able to explain to you your break even point. The break-even point In the end, deciding whether the cost of mortgage refinancing is worth it comes down to a simple question: “How long will it take before I start to save money?” In theory, this is a simple calculation. You start with the amount you will save by lowering your monthly payment. Then you add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point. For example, let’s assume that refinancing would lower your payment from $1,000 to $800 (for a savings of $200 per month) and your prepayment penalty, closing costs and points add up to $5,000. Divide $5,000 by $200 and you’ll see that it would take 25 months to realize the savings. In reality, however, your break-even point also depends on other factors, including your tax situation and whether you pay closing costs upfront or add them to the principal of your new mortgage. If you are refinancing and your home has appreciated in value, you may also be able to save by canceling your private mortgage insurance. For a more accurate estimate, use our refinancing calculator. Or consult a financial advisor who is familiar with your tax situation.

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Apply for your new mortgage loan here: Mortgage Refinancing Lenders Directory Mortgage Purchase or Refinance

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You really need to be on your guard at all times when it comes to movers and moving companies itself, you don’t want anything to get broken when you are moving either from DC, Seattle or Dallas.. Think about it, how do you really know what is truly going on with all your stuff. Your personal effects don’t come easy if mishandled or broken so you really need someone who appreciates the value of this kind of moving insight.

Seriously keep in mind that specific items require specific packing directions. Make sure that packers and movers do their very best to make sure they are as careful as they can be. Movers that show respect to your personal belongings are sure to relocate your items with care as well. Make sure that are going to arrive when they are schedules to as well.

Another tip to think about is that your car will probably travel flat without being tied down by chains to the back of the moving truck. It should not be difficult to find an car transport company with a crew of certified professionals who maintain a fleet of opened and enclosed transports to fit your needs and budget.

For added support most professional and state of the art moving companies should be equipped with air ride cushions for shock absorption throughout the transit. An experienced moving company should know and place your prized possession and your peace of mind in the utmost regard. Get the satellite tracking to monitor the vehicle at all times.

A well rounded moving, packing and car transporter company should also provide services for containers, storage. A confident and dependable moving company always ensures your satisfaction. I seriously recommend that you pick a company that owns its own fleet of trailers to ensure a timely and safe delivery of your valuables and furniture.

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Purchasing furniture is a huge undertaking for most people. While the ordinary shopper takes this process for granted, the importance of these products can never be highlighted so much. Imagine a home with no tables, beds, closets, or even a chair. Where could you sit down, have a meal, and put away your things? You encounter furniture daily but do disregard them completely. The only time you make such effort to observe furniture is the time when you’re purchasing them.

Choosing furniture is a very important matter. You should want pieces of furniture that are very functional and would outlast for years, if not a lifetime. At the same time you want furniture that suits your pocketbook well. Getting furniture that’s equally affordable and durable seems to be a hard thing to accomplish. Analyzing a lot of furniture is very tedious. You may want additional help to be certain that you’ll make the correct decision and get a nice bargain when purchasing furniture. If this could be the scenario, then you might want to consider talking to a pro before buying your fixtures.

Basically, you can talk to anyone who has some experience purchasing furniture. You could talk to your family, your employer, your co-workers, or your friends. You may even talk to your mother-in-law if you are on good speaking terms with her. Great advice may come from these places, but that is not all the time. What is okay for your boss may be too costly for your taste. What is okay for your friends might not meet your style. What you actually need is guidance from a person who knows furniture and the sorts of consumers that could go good with them. This is the aim of a pro.

A professional furniture adviser or an interior designer would get what would be best not simply for you or your family, but also for your home as well. They first try to get information about you, your likes and dislikes, and then match your profile with the selection of furniture acquirable in the market. This could save you not just lots of time and energy, but cash as well. When you’re shopping for furniture alone, there is a risk that you would not get the greatest deal for your money’s worth. You might wind up blemishing what you bought and wanting to purchase a brand new one. Think how expensive this could be. But with the help of a pro, your mind is focused and you simply purchase what precisely fits your needs and the amount you want to spend.

When shopping for furniture, it’s good to discuss it with a pro. It will assist you in saving a great deal of money, and cause you to relish in your furniture and ultimately your life.

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In todays economic situation buying a home will be the largest and best investment most people will ever make. Lots of people correctly believe that owning their own home will create a nest egg and is something to be proud of at the same time. On this side of the Atlantic it does seem largely a British dream as opposed to Germany and France where the people are quite happy to rent a house all their lives. In the current financial climate some people are starting to wonder if this premise will hold true but check out few facts here and you’ll see this is a constant financial fact.

The Property Market has consistently shown appreciation over the years. Real estate has generally appreciated about 5% a year overall. Having 5% down on a 200,000 house is an investment of 10,000. That house would increase about 10,000 to 11,000 for the first year in normal growth years. Earning 10,000 on an investment of 10,000 is equivalent to 100% earnings which would be virtually impossible to do in the stock market unless you were extremely lucky.

If you put 5,000 into the stock market and got a 5% gain, you would receive a 250 profit. Clearly, the property market lets you come out much further ahead in average years. It must be stressed that we do have some exceptional years where the value of your property could possibly go up by even a 1/3rd! but this is exceptional.

There will always be blips and temporary downturns in the market. These are always caused by other economic factors such as Government Policy, Oil Prices, what our American Friends have been up to, etc. This could be difficult for new homeowners who may be stretched a little but if you’re an established home owner then you just don’t try to move during these periods and wait for the good times to return.

Here’s another example of how the property market is the best and most consistent investment over time. Let’s say a semi detached house was worth 80,000 in 1997. The value of that house today would be in the region of 150,000. Your investment in that house could have been as little as 4,000. If yu had invested that 4,000 in the stock market in 1997 you would now be worth around 7,800. Where would you rather have had your money?

The beauty of the property market is that home values tend to increase more or less steadily over the period of time. There are spikes and troughs but these are nowhere near as dramatic as those when you are dealing with stocks and shares. It is a true fact that the housing market has NEVER yet failed to recover from a slump in prices. The British attitude to owning property will always ensure that this remains constant.

If people are careful about when to trade up on their property they can also avoid the necessity of paying Capital Gains Tax which means over the years a person can develop a small house into a much larger one or even a portfolio of properties without paying Capital Gains Tax. Tax free investments is definitely the way to go!

There is no reason to fear home ownership in the market in the current market with all the doom and gloom around. Simply look for the type of property and payment mechanism that you can afford and resist the temptation to use your home for a “bank” when you need money as in an equity line of credit. The home will be by far your best asset in your future financial portfolio and will continue to make you feel secure in your financial future for the rest of your life. Everybody’s circumstances are different and a really important task is to make sure you are in the best mortgage for you! There are lots of different mortgage options out there and it can make a massive difference to your lif if the get the best advice for you.

As the economy takes a bit of a slump if you find your finances are getting a bit difficult to handle then a good option is to consider a debt consolidation mortgage. Your monthly outgoings can be significantly reduced by taking this option as opposed to paying other high interest loans and credit card balances.

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Monopoly is a zero sum game based on competition, based on a limited money supply. Since the money supply cannot increase, the players can win only by taking money from other players.

This fundamental reality of Monopoly is that one player wins while the others lose. This reflects the experience of the Great Depression. Thousands stood in breadlines while a few people became very rich.

Monopoly does not allow players to help each other. The rules forbid partnerships and loans between players.

What is the psychological lesson from such a competitive game? You learn that you are a solo player and you want the other players to fail. You would never want to help another player because that could mean you would lose.

This game teaches that fierce competition is the only way to create wealth. This is the way the world is. You will succeed only at the expense of others.

This idea is deeply embedded in our consciousness about what it takes to make money and what it takes to succeed in business. Monopoly simply reinforces the fundamental belief that the road to success is paved with the bodies of your competitors.

As a success model, what is the effect of a game based on competition for a limited money supply? You don’t have to look any further than the statistic that 96% of the population will reach 65 without enough money to be financially self-sufficient. Instead of congratulating the 4% who somehow manage to create financial freedom for themselves in this economic system, you need to ask, “What is wrong with the game? Why do so many lose?”

The short answer is that many have to lose in order for a few to create wealth. The economic model of competition for limited resources demands that almost everyone must end the game broke for a few to become rich.

What happens when you attempt to create wealth in business according to Monopoly Money Rules? It’s a highly competitive game and a lonely struggle. You use your own money and do it alone. Will you succeed? Maybe. You might be one of the lucky few who manage to do it all yourself. More likely, you will end up as one of the casualties of those who tried to start a business but never made enough money to succeed.

Monopoly reflects the mindset and money beliefs of the Great Depression. In the Monopoly game, the winner acquires more money by taking it away from the other players, but the winner does nothing to create more money through transactions.

Mr. Monopoly had it wrong when he thought that the only way to win was to drive competitors out of business. It’s true that business is full of “black knights” and hostile takeovers from people who still treat business as a game that allows only one winner. But the Great Depression ended more than sixty years ago. It’s time for a new game with a new understanding of money. The fact is, you’ll make more money in transactions than you will in takeovers.

In this era, the most enlightened business people understand that you will make more money in joint ventures with others than you will by competing against them. When you take off the Depression era Mr. Monopoly glasses, you can see a new vision of money and business. Money is not currency. Money is an idea, and the only limits to money are the limits of your vision.

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The equity in your home is the difference between the current market value of the property and the total amount of the mortgage secured against it. Most house owners don’t think about how this money which could be quite significant can be used in better ways. This money can be used far more efficiently in most case and indeed, should be!

One of the most common ways of using this equity is to take out a 2nd mortgage against the equity and consolidate other higher interest debts such as credit card debts. Also using your equity can help to finance some of life’s bigger or even unexpected expenses.

Most of us have a whole lot of monetary obligations like credit card debts, children’s college education, all kinds of home improvements etc. to contend with. A 2nd mortgage loan will enable you to take care of many of these requirements and also could leave something to spare.

Some of the benefits of this type of loan are:

Consolidation of your other Higher Interest loans (credit cards for instance).

Wouldn’t it be nice to just have one monthly payment to make. All the credit card bills are gone, any other higher interest loans also for instance medical bills, car loans etc. Having consolidated all these bills into a much lower interest loan the actual total that has to be paid every month is like to be significantly lower.

Of course, another massive advantage of this is peace of mind! Apart from this, you will be definitely more organized as far as your monetary responsibilities are concerned and this all leans towards a more contented life.

When you have to spend a lot - why pay higher rates?

We are not being rash or frivolous here, now and again there are BIG bills that come our way and sometimes it’s very hard to cope with the pressure of finding these large sums of money. Your daughter’s getting married and you, of course, want the best for her but it’s going to cost many thousands of pounds and you’ve had no overtime for two years. Taking out that second mortgage might just take all the stress out of this situation, make life much happier and more comfortable and the monthly payments might pleasantly surprise you.

Tailor Your Loan to Suit You

These days there are different types of mortgage loan to consider. You might choose one depending on which way you think interest rates will go. If rates are likely to be higher in the longer term then a fixed rate mortgage could be the best option. At least with this type of loan you know what your monthly outgoings are going to be for the entire period of the loan.

On the other hand, you also have the option of an adjustable rate loan. In this case quite often the initial rate of interest is quite low for a couple of years or so, but after the initial period the rate is decided by the fluctuations taking place in the economy. The choice is yours but ask a professional Mortgage Broker which way he would go and you won’t be far wrong.

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