Old House Or New Build: Which Is The Better Investment?

The main question that seems to come up when someone gets ready to build a new investment property is whether or not it is better to invest in a brand new home or an older place. Unfortunately, there is no golden answer. Each one of these options has advantages and disadvantages. We’re going to be discussing some of those options so that you can hopefully narrow down your choice!

 

 

Why To Buy New

 

Everything In The Home Is New

Appliances and construction features have come a long way, even in the past few decades. There are many modern characteristics of homes that are extremely popular at this point, including open-floor plans, granite counters, high-tech electrical systems, and stainless steel appliances. If you buy old, you’ll likely have to upgrade these things to help sell that home to the large majority of buyers.

 

Less Of An Introductory Cost For Upgrades

With older homes, you typically need to account for renovation costs so that the home is livable. You’ll have to take more time to fix those necessary items, which may mean hiring third-party contractors to do work. Not only does this require a lot of effort, it also requires you putting trust in others with the property that you just purchased.

 

Increased Energy Savings

Thanks to modern systems, newer homes tend to be far more energy-efficient than newer homes. You can save a massive amount of money if you end up paying for it yourself or you can use it as an incentive when trying to entice renters.

 

 

Why To Buy Old

 

Unique Character

While newer homes might be more “comfortable” and “clean” for the modern family, they often lack the character that you find in older homes. Think of the gorgeous crown molding, casement windows, Spanish tile, and wood panelling, that you’ve likely seen in older properties. These characteristics give you a huge selling point.

 

Low Purchasing Cost

While you may have to spend some money on maintenance and upgrades, you might still end up paying far less than you would with a new home. Many buyers can find old homes in the same range as new homes for initial costs more than 20% lower. You’ll also have a better ability to get a lower price on the home, as it is easier to make deals with current homeowners vs. developers.

 

Better Location Choices

Many great neighborhoods in prime locations have already been completely developed, meaning housing developers often have to look in less desirable areas to build. This means that you might not be able to find a new home in a popular district or local hotspot. Location is one of the biggest deciding factors in home-buying, meaning you may have an easier time selling, even if you get a house that is more run down in an attractive neighborhood. Just think of the million-dollar shacks that line the streets of San Francisco.

 

 

Conclusion

Hopefully this article has helped to narrow down your decision as you look for a new investment property. Each choice has its own pros and cons, so it’s up to you to decide which path you want to take and how much work you want to put in or money you want to save.

 

Have you ever purchased a new or old property before? What was your experience like? Let us know in the comments!

The post Old House Or New Build: Which Is The Better Investment? appeared first on National Cash Offer.

source https://nationalcashoffer.com/old-house-or-new-build-which-is-the-better-investment/

Is It Worth It to Buy a Beach House?

The sun, sand, and fun all make a beach house an alluring dream for many people. Who doesn’t want somewhere to call home that’s right on the beach? However, you might be asking whether it’s worth it to buy a beach house in reality.

 

Sure, on paper a beach house sounds amazing. You have somewhere to vacation every time you want to get away, and you might even be able to rent it out when you’re not there for some extra cash. The being said, there are a lot of downsides to owning a beach house that you need to consider before you sign on that dotted line. In this guide, we’ll discuss whether it is worth it to buy a beach house once and for all.

 

 

The Pros of Owning a Beach House

First, let’s talk about why you might consider a beach house in the first place. As you might expect, this goes beyond the pretty view. There’s a popular saying that the only way to avoid feeling homesick while on vacation is to simply buy property, and this is definitely true.

 

Why might you want to buy a beach house? Here are a few of the top reasons:

• Location, location location – Buying property in an ideal location (like on or near the beach) is usually a good indicator of a positive return on investment. You know there will always be interest in the location, so you’ll feel more secure in your property.
• Instant retreat – Another perk is always having somewhere to vacation that you’re comfortable with. If you frequently vacation to the same area, this can even be cost-effective.
• Rental potential – Finally, you always have the option to rent out your vacation property, leading to a passive income stream.

 

As you can see, there are a few major pros to owning your own beach house. However, like everything in life, things aren’t always picture perfect.

 

Cons of Owning a Beach House

When reality sets in with your beach home, you’ll quickly realize the beach comes with its own challenges. Whether you choose to vacation in your beach home or live there full-time, there are a lot of unique things to consider.

 

Some of the cons of owning a beach house are:

• Rental challenges – If you choose to rent out your property, that comes with its own problems. If you don’t live nearby, you’ll need to hire a third-party or a manager to handle any day-to-day rental issues. In addition, there are limits to the rental season, so you likely won’t be able to rent your property out year-round.
• Insurance – Unlike at home, you’ll probably pay more in insurance for your house by the beach. You’ll need additional coverage for things like storm insurance, flood insurance, and so on depending on the location. This adds up quickly.
• Maintenance – It also goes without saying that the beach itself will take a toll on the property. You can expect to spend 1% (or more) a year of the home’s value in repairs alone. This doesn’t include the cost of a property manager if you choose to rent.
• Vacation blues – Finally, having a vacation home by the beach ties down where you can take your vacations. If you like to explore new places when you get away, you’re likely better off just renting a home or staying in a hotel.

 

It comes as no surprise that the beach brings its own difficulties to owning a home. That being said, it still might be worth the investment for you to own a beach home.

 

Should You Buy a Beach Home?

It’s absolutely possible to own a beach home and get a good return on investment. If you get a good rate on the property, factor in the costs, and have a plan for renting it out, you can make your beach home a valuable asset for yourself.

 

However, if you think your beach home will be a quick and easy getaway property, think again. There’s a lot of maintenance to consider, and renting your vacation property isn’t as easy as it sounds. You’ll need to be prepared to put in the work. At the end of the day, if you want flexibility in where you vacation, owning a beach house probably isn’t right for you.

 

Are you planning to buy a beach house? Make sure you consider the pros and cons before making the decision. A startling 33% of vacation home buyers purchased a home in a beach area, so clearly, this is a popular choice. However, you need to make sure it’s the right one for you and your goals.

The post Is It Worth It to Buy a Beach House? appeared first on National Cash Offer.

source https://nationalcashoffer.com/is-it-worth-it-to-buy-a-beach-house/

Buying a Second Home vs Buying Your Primary Residence

The experience of buying your second home vs buying your primary residence can be very different. When buying a second home, your needs are likely much different than they were when buying your first residence.

 

As such, there are several things to consider before deciding to buy your second home. It’s important to prepare yourself before jumping into this process in order to ensure you find the perfect property to act as your second home.

 

Before starting the search for your second home, consider these factors to make sure you are as prepared as you can be.

 

Why Are You Buying a Second Home?

First and foremost, seriously consider the reason why you are buying a second home.

 

When you purchased your primary residence, you were likely concerned with factors such as neighborhood amenities, nearby schools, nightlife, etc. However, if your second home is meant to be a vacation home, you might be more concerned with things like weather, distance to the beach, and similar factors.

 

In order to find the property that’s right for you, you need to seriously consider your wants and needs before starting your search.

 

Getting a Mortgage

Getting a mortgage for your second home can be much more difficult than it was to get your mortgage for your primary residence.

 

The primary difficulty is proving to lenders that you can afford a second mortgage. Since you already have an active mortgage, lenders are taking on more risk.

 

Additionally, your lender might require you to buy a property that is a certain distance away from your primary residence in order to ensure that it is used as a vacation home and not your primary residence.

 

Do You Plan on Renting Out Your Second Home?

Renting out your home can be a profitable decision, but it does come with disadvantages.

 

For example, if your second home is far away from your primary residence, it may be difficult to manage the home and tenants on your own. Instead, you might have to hire a property manager, which will increase your expenses.

 

Additionally, if you plan on using the home at all, having an active tenant could prevent you from visiting your second home when you want.

 

If you are interested in renting out your second home, you should be sure to consider the advantages and disadvantages before doing so.

 

Maintenance

Just like with your primary residence, you will have to perform maintenance on your second home to preserve its value and keep it in good shape.

 

Since you won’t be living in your second home, you may need to hire a professional to maintain your second home while you are away.

 

Finding the Right Location

Lastly, you need to seriously consider the location of your second home. This may seem obvious, but the importance of picking the right location can’t be emphasized enough.

 

For example, if your second home is too far away, you may not find the time or money to visit it as often as you expected to. Too close and there might not be any reason at all to visit your second home on a regular basis.

 

Moreover, if you’re buying in an unfamiliar location, it can be more difficult to assess the value of properties in the area.

 

Buying a second home is a very different process than buying your primary residence. By considering these factors, you can find the perfect second home for you and your family.

The post Buying a Second Home vs Buying Your Primary Residence appeared first on National Cash Offer.

source https://nationalcashoffer.com/buying-a-second-home-vs-buying-your-primary-residence/

Questions To Ask When Choosing Between a Fixed and Adjustable Rate Loan

When you are looking for a loan, there are a wide variety of options to choose from. Two that we seem to hear about the most are fixed-rate loans and adjustable-rate loans. Fixed-rate loans have a single interest rate that is locked in for the lifetime of the rate while adjustable-rate loans have a separate intro rate for a few years, though can fluctuate over a lifetime depending on a number of variables.

 

Whenever you apply for a large loan, you’re going to have to pick between these two.

 

Which one is best for you?

 

Let’s dig in and find out!

 

1. Do You Think You’ll Be Able to Afford an Increased Rate In the Future?

Adjustable-rate loans can fluctuate every year. You may be lucky and get an adjustable-rate that drops in a year, saving you some cash. On the other hand, you might get one that increases over the next year. You need to ask yourself,

“Will I be able to afford my loan if the rate increases?”

Remember, your monthly pay will increase with the rate. If the possibility of that scares you, your best bet is to go with a fixed-rate loan, for which you can easily budget for. The cool thing about fixed-rate loans is that you can always try and refinance them if you pay on time for a while.

 

 

2. How Long Are You Planning On Living In That House?

If you aren’t planning on living in your home for any more than 10 years, your best bet is to get an adjustable-rate loan. Many people move into homes temporarily and end up moving out as life changes (having kids, starting new jobs, etc.). Adjustable-rate loans are ideal and typically have lower introductory rates, making them perfect for paying them off sooner. If you won’t be there for any more than 10 years, you shouldn’t have to worry too much about fluctuation either.

On the other hand, if you are more settled into your life at this point, a fixed-rate might be more ideal.

 

 

3. Can You Afford a Big Down Payment?

If you have a ton of money for a down payment, you won’t have to borrow as much money from a lender or the mortgage company. Essentially, the lender isn’t taking as much of a risk lending you a large sum of money. You have a better chance of getting a lower interest rate if you make a large down payment.

For those who are able to provide big down payments, it might be ideal to lock in a low interest rate at the beginning and keep it fixed over time.

 

 

Conclusion

There is no question that taking out a large loan is a massive commitment. Make sure to take all factors into consideration so that you can plan for your future. We hope that this article was helpful in narrowing down your choice.

Do you have any experience taking out adjustable or fixed-rate loans in the past? Let us know about in the comments!

The post Questions To Ask When Choosing Between a Fixed and Adjustable Rate Loan appeared first on National Cash Offer.

source https://nationalcashoffer.com/questions-to-ask-when-choosing-between-a-fixed-and-adjustable-rate-loan/

Ways to Make Your Home Offer Stand Out

You’ve found the home of your dreams, and now it’s time to make it yours. This is an exciting time, but you also need to make sure your offer stands out to the homeowner. There’s a long list of things that can get in the way of your offer, so how do you land the sale?

 

In this competitive market, you can use any edge you can get over the competition. If homes are in short supply in your market, you need a way to persuade sellers that you’re a serious homebuyer worth considering. Here are the best ways to make your home offer stand out.

 

 

1. Offer to Pay Cash

Cash speaks loudest when buying a home. The notorious home investors and home flippers who snag the best deals all come equipped with cash. Let’s face it, who doesn’t love cash? It’s much more reliable than a complicated mortgage process.

 

Cash offers are less likely to fall through before the sale closes. In 2016, for example, home sales failed nationally at a rate of almost 4%. This is higher in some markets. If you can afford to pay in cash, this is a great way to make sure home sellers take your offer seriously.

 

2. Have Your Preapproval

Of course, not everyone can afford to pay cash. If you’re like most homebuyers, you’ll need to get a mortgage. Before you start home shopping, get preapproved for a mortgage. It’s recommended that you apply for a mortgage 3-4 months before you begin shopping for homes. This gives you more than enough time to get the initial paperwork out of the way and make sure there are no problems.

 

Having a bank’s preapproval won’t guarantee that you’ll land the home sale, but it does show sellers you’re serious. A pre-approval means you have verified income and credit score, so you have evidence that you can actually afford the home you want.

 

3. Add an Escalator Clause

An escalator clause is an agreement that you’ll up your offer if there’s a higher bidder from another buyer. This can be risky if you don’t have much wiggle room in your budget, and you might also pay over the market value. However, it’s an effective way to show you’re serious and get your offer noticed.

 

4. Make a Strong Offer

One of the simplest ways to get your offer noticed is to start strong. You might only have one chance to get it right, so offer what you’re willing to pay. Compare your offer to recent sales for similar properties nearby. If you start off too low, you might miss out to better offers right off the bat.

 

5. Connect with the Buyer

You can actually take matters into your own hands to connect with the seller to show you’re the best buyer. This is especially true if you haven’t met the current owners personally. Share what you love about the house, who you are, and why you want to live there.

 

More importantly, thank the homeowner for their time. A simple “we appreciate you accommodating our tour” goes a long way. Sometimes, it’s these small things that leave a lasting impact.

 

6. Offer More Time

Finally, many home sellers are working with a strict schedule. They might want to remain in their home even after closing, and this can be a unique leveraging point for your offer. Offering them to “rent back” or “lease back” the space can help them choose you over other offers.

 

When the previous owners then become renters, you’ll become their landlord. However, if you’re flexible and willing to be patient, this can work in your favor.

 

Landing the Sale

Finding the home of your dreams is only the first step. If you want to actually get your offer noticed, you need to be strategic. In some markets, homes sell at lightning speeds. While the national average time it takes to sell a home is 68 days, it’s not unusual for home buyers to have several offers on their property.

 

These steps above will help your offer stand out so you can land your dream home. You’ll be moving in faster than you know it.

The post Ways to Make Your Home Offer Stand Out appeared first on National Cash Offer.

source https://nationalcashoffer.com/ways-to-make-your-home-offer-stand-out/

Things to Know Before Building a Home in a Historic Neighborhood

Building a home in a historic neighborhood can be an exciting opportunity. Every historic neighborhood has its own unique history, and building a home in one of these areas allows you to be a part of and preserve that history.

 

However, while there are plenty of benefits to building a home in a historic neighborhood, there are things you should consider before doing so.

 

By building a home in one of these areas, you’ll be responsible for preserving the historical character of the neighborhood. This process can also take quite a bit longer than anticipated, so it’s important to be prepared before taking this step.

 

Let’s take a look at some of the things you should know before building a home in a historic neighborhood.

 

Design

Designing your new home to fit in with the other buildings in your new neighborhood can be difficult.

 

You should be sure to examine nearby buildings to ensure that your new home matches the area and surrounding buildings. Some factors to consider include:

 

• Color
• Orientation
• Materials
• Roof Shape
• Size
• Landscape
• Decorations

 

These factors, among others, will help make sure that your new home is inoffensive and fits seamlessly into your new neighborhood.

 

Modern Amenities May Not Be Feasible

Preservation is an important factor when building a home in a historic neighborhood. As a result, adding modern amenities and utilities to historic architecture may be challenging.

 

In addition, even if you are able to do this, they could devalue your property if you ever plan to sell. Modern features and amenities may not align with the interests of buyers who want a home in a historic area.

 

Rules and Regulations

If you’re building a house in a historic area, there will likely be certain rules and regulations that you have to abide by.

 

These building codes are put into place in order to preserve the integrity of the area. In order to comply with these regulations, the building process can be expensive and can take quite a bit of planning.

 

Be sure to contact your local planning department to find out which building and zoning codes you need to abide by.

 

It Might Take Longer Than You Think

As mentioned above, building in a historic neighborhood will typically require you to follow certain building codes.

 

In order to build your home, you’ll likely have to have your design approved by a review board. Depending on how strict these building codes are, it could take several months for your design to finally be approved.

 

As a result, you should be prepared for a long planning and building process.

 

Building in a Historic Neighborhood Can Be Costly

After building your home, you’ll need to maintain your property. This can get expensive.

 

Since there are standards that your home will have to meet, you’ll be required to constantly work on your home to ensure it meets these standards. In this way, owning a home in a historic area is similar to living in a community with a homeowners association.

 

Building a home in a historic neighborhood can be a rewarding experience, but it’s important to know exactly what you’re getting yourself into.

The post Things to Know Before Building a Home in a Historic Neighborhood appeared first on National Cash Offer.

source https://nationalcashoffer.com/things-to-know-before-building-a-home-in-a-historic-neighborhood/

How To Dry Carpet After Cleaning

Cleaning your carpets regularly is important both for the health and longevity of the carpet itself and of those living in your home. Carpeted floors can harbor dirt and odor. This is why it is important to know how to dry carpet after cleaning.

 

Carpets that have been cleaned but not properly dried can re-trap the dirt and mildew you just worked to remove, as well as grow bacteria and mold in their fibers. That’s why learning how to dry your carpet after cleaning is especially important to maintaining your carpets, your home, and even your family’s health.

 

If you’re wondering how to dry your carpet after cleaning, you should know first that the answer to your question depends on a number of factors including the type of carpet you’re cleaning, the cleaning method you’ve used, the size of the carpet and the internal climate of your home.

 

 

How to Dry Your Carpet after Cleaning

That being said, there are a few tips on how to dry your carpet after cleaning that will prove effective, regardless of any of those other pesky variables.

 

 

Step 1: Consider the method you used to clean your carpets.
The biggest factor affecting how to dry carpets after cleaning is the method with which they were cleaned. Most carpets will dry on their own with no extra work on your part, but the time it takes them to dry is highly affected by the cleaning method.

 

Dry cleaned carpets typically take between 2 and 4 hours to completely dry, whereas steam cleaned carpets or carpets cleaned using the hot water extraction method can take anywhere from 6 to 12 hours to air dry.

 

Carpets cleaned using the hot water extraction method takes longer to dry because these techniques use more water. In the hot water extraction method, hot water is pressurized and sprayed into the carpet fibers, saturating them with water in order to draw out deep dirt, debris, and spores. When the bulk of that water is vacuumed out of the carpet, any soil is taken with it. This method, however, leaves behind a significant amount of water compared to the dry cleaning method like Oxi-Fresh and Eco-Green.

 

Step 2: Encourage air circulation
The fastest and easiest way to dry your carpet after cleaning is to introduce more air to the carpet. Simple solutions such as opening a nearby window and turning on a fan in the room with the freshly-cleaned carpet can cut the drying time of wet carpets in half.

 

Because moisture and humidity tend to get trapped indoors, any outside air that can be brought into contact with the wet carpet is likely less moist than the air inside the house, barring any rain or snow events. This less-damp outside air encourages water from the carpet to evaporate quicker.

 

Open two windows on opposite ends of your home to encourage maximum airflow throughout the building.

 

Step 3: Dehumidify the air
Carpets can only dry when the water soaked into its fibers can evaporate into the air. In order for evaporation to occur, the air around the carpet must be drier than the carpet itself. Turning up HVAC systems, which naturally strip moisture from the air inside your home can dramatically reduce the drying time of wet carpet if the weather outside is uncooperative or if the carpeted room has no windows or doors to the outside. If possible, leave HVAC systems on overnight to ensure that the interior air is as dry as possible. This will wick water away from the carpet until it dries completely.

 

Step 4: Use a Shop Vac
Shop vacs are designed to suck up excess water, just as vacuums are designed to suck up dirt and debris. If you already have access to a shop vac or have chosen to rent one from a carpet cleaning company, simply use the shop vac as you would a vacuum over the newly-cleaned carpet. You can run the shop vac over the wet carpet multiple times to remove as much water as you can before allowing the remainder of the water to evaporate over time.

 

Step 5: Clean your carpets more frequently
As interesting as it may be, cleaning your carpets on a more frequent basis can actually help reduce the overall drying time of your wet carpets. Over time, frequent carpet cleanings result in less overall dirt and debris trapped in your carpet. The less dirt and debris there is to remove with each cleaning, the less water must be used every time you clean your carpets. Therefore, the less dirty the carpet, the less water it needs and the faster it dries.

 

Step 6: Ask for a professional’s help
If you’re having your carpets professionally cleaned, ask your cleaner for a “blow-dry.” Carpet cleaners can use blowers or vans to help remove water from your freshly-cleaned carpet. For most professional cleaners, the blow-drying process is fairly quick, so it is likely that your carpet won’t be completely dry when they’re done. After your professional blow-dry, it’s still a good idea to open a few windows, turn up the HVAC system, or go over the carpet yourself with a shop vac.

 

Conclusion

There really is no one “best way” to dry your newly-cleaned carpet. Wet carpets will dry on their own in time, depending on the method used to clean them, the humidity of the surrounding air, and the specifications of the carpet itself. But the speed at which your carpet dries can be sped up by reducing the atmospheric humidity of your home, introducing more air circulation, using shop vac tools or seeking the help of professional carpet cleaners. If you follow any one of the above tips, you’ll be able to use your clean carpet in a matter of hours.

 

Remember, you can be proactive in cutting down the drying time of your carpets by cleaning them or having them cleaned more frequently. The more dirt that seeps into the fibers of the fabric, the more water must be used on them to extract it.

The post How To Dry Carpet After Cleaning appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-to-dry-carpet-after-cleaning/