Okaza Real Estate

Reasons Why You Should Build a New Home

A house is more than just a dwelling. It is an investment, a way to save for the future and to watch your capital grow. It makes sense to buy and own a house rather than pay rent. If you consider the amount of rent you pay over a lifetime you will find that if you own a house and pay a mortgage, you save a lot of money and also become the owner of property you can pass on to future generations or sell at a tidy profit. Should you buy a used house or should you build a new home is the question. There are pros and cons to each. However, a new home is definitely worth considering over buying an existing one.

You can choose the location

It may not be possible to find an old house in the location of your choice. You can buy a plot of land in a location you like and think of building a new home entirely to your specifications.

Design of the new home

When you buy an existing house, you have to take it as it is and renovate or remodel. You could, of course, demolish the house and use the site to build an entirely new home from the ground up. In either case you have full control over the design, placement of rooms, siting of the house in the plot, size and all parameters.

Quality of construction

An old house will have a number of defects. There could be cracks in the walls, leaks in the roof, peeling paint and similar issues. When you build a new home you are in total control. You can decide whether your new house should be made of masonry-concrete or lumber or prefab or even steel, aluminum, glass. Your builder will also factor in “green” building technologies that will help save energy and keep the house cool in summer and warm in winter. The savings alone make it worth the effort. In addition, when you go for new construction and have a reputed builder by your side you have full confidence that quality materials and processes will go into the construction to make the building last.

Cost control

Fix your budget and talk with the builder. He can come up with a clever design that will give you a house within your existing budget with provision to expand later on. You could decide on a lumber home, which might give you a larger space at a lower cost. If time is a constraint your builder could help you select the right prefab house. You could decide on a concrete-brick structure, starting with a ground floor for the present and then build the first floor later on. You can even decide on what goes inside such as the tiles, wall cladding, insulation, fixtures, light fittings and every tiny detail.

Peace of mind for years

A new house will give you peace of mind for years. You will not have problems of water ingress from the floor or walls, dripping ceilings or drainage problems. A well built house should require minimum maintenance for at least five years, if not more.

Value addition

When the design is right and the exteriors blend in with the landscape to create an overall beautiful aesthetic, your house increases in value. Should you decide to sell a couple of years later, you can always expect a profit.

Pride of ownership

Last but not least, if you have invested time, energy, thought and money in the building of a new house, it is the realization of a dream and it gives you pride of ownership.

Investing In Residential Real Estate For Positive Cash Flow

To any savvy investor, real estate was the tried and true model for consistent return on investment. At least that was prior to the 2008 crash and the chaos that followed. Now terms like subprime mortgages, NINJA loans, and predatory lending have left a nasty taste in the mouths of many Americans shaking their trust and leaving wide open a golden opportunity for people willing to go against the grain. It is true that buying real estate these days takes some real effort. Financing residential real estate takes more than the traditional route of going to your local bank and taking out a traditional loan. Especially if the investor hopes to turn newly acquired real estate into positive cash flow, after all while the housing market has certainly improved there is no shortage of “for sale” signs in the suburbs.

During the early 2000’s the trend in residential real estate was monolithic homes that took up two or three lots gobbled up by developers. The many “McMansions” still stick out in otherwise inconspicuous neighbors, remnants of the unique hubris of owning a large home even if it meant you couldn’t afford to live there. Of course developers made money this way; they also lost their shirts this way in 2007 and 2008 when they could no long sell these homes and the loans defaulted. So like all other times in history were demand falls, supply tappers off, but that demand was simply for huge houses not for housing. Every American still needs a home, and now is willing to settle for lease since they have already lived through the recession. Really average young Americans have to rent, after all banks are simply not willing to give out mortgages to millennials who, unlike their parents, are more and more often being confronted with staggering student debt and a shakier job market.

So then what is left? The answer is simple; invest small, and invest in rental properties. If you want a real positive return on your investment the soundest course to take it to acquire foreclosing and short sale properties from neighborhood banks. Sometimes these properties have a tendency of being beaten up and will require some work to improve them enough to rent, but when compared to building new the initial investment is minuscule. This tactic can allow you to find a property for much less than it’s estimated value and so can turn the CAP rate to your advantage. However, to truly turn a property around and have it cash flow positively requires a very important consideration, more important than even how inexpensive the property was; your market. If you want your newly acquired (formally foreclosed) piece of residential real estate to start producing revenue right away than it becomes important to understand the demographic you are trying to attract.

If you want to take advantage of the new real estate trend, and at the same time maximize your profits, then you should aim small. Americans no longer want the 4,000 square foot brick homes with 5 bedrooms and 3 full baths; they want to live where the utilities are small and the taxes aren’t huge. This trend isn’t just for home owners/ renters; it is all the rage in apartments too. The advent of the “micro unit” (really just a 280 square foot studio) is taking over San Francisco, and New York where young professional would rather be out in the city than staying inside. The mind set of many suburban markets is minimalist too, just the basics, and that couldn’t be better if you are investing in single family homes. After all there are still plenty of big homes on the market, but smaller and older homes are sold much sooner.

So if the hope is to maximize your investment on residential real estate then the strategy is simple: look for foreclosing/ foreclosed properties, invest in distressed properties that can be fixed up quickly, and aim small. A 1940’s two bedroom home can offer more to an investor, even if it doesn’t feel like such a huge return, but the goal is consistency. It better to make consistent positive cash flow than to take a big risk and buy big, and wind up sitting on a property that could have already been rented out if it were smaller. In today’s market the old adage of “go big or go home” could literally not be more wrong.

Tips on Investment Properties for Beginners

Tips on Investment Properties for BeginnersWhen you have extra cash and want to invest it the best option is real estate because they have high returns. Although property prices in the short term may go up and down, they appreciate substantially in the long run. Investment properties are something that you can bank on as it will acquire value with the development of the areas in the vicinity of the property. There are risks that cannot be completely eliminated but if you do a thorough research and planning you can lessen the risks. If you are a beginner investor, investing in real estate can seem daunting at first. Here are some tips to help you make the right investment choice.

• Know the range of options for real estate investment-you can invest in buying commercial properties, residential houses, apartments, condos, or land so you need to study which would be a better investment for you. There are many options so you will need to do your research to see which one will align with your future plans and stay within your budget.

• Why investing-are you investing to buy to sell again for a profit or do you want to rent the investment property? If your investment properties are residential you can create a regular income by invent in rental properties. You can also be a “house flipper,” which is where you buy an older home, renovate them, and sell them for a profit. If you decide to invest in commercial property you can hold it until the prices go up and then sell it to make a good profit.

• Location-when buying an investment property remember it is all about the location. The price of the property is largely a function of where it is located. Where the property is helps to decide the price range. Make sure that you research the price trends according to different locations before you buy investment properties.

• Network with a real estate agent-they can make your job a lot easier finding the type of property you want to buy. When you network with real estate agents they can help point you toward investment properties that fit your plans. A real estate broker will handle the legal work that is involved with the sale and purchase of the property for you. They can also make an offer and negotiate for you.

• Make financial arrangements-once you chosen the investment property you will need to arrange a mortgage to pay what your savings do not cover.

Have a Luxury Home When Working With Custom Builders

Whether one is dreaming of a waterfront estate, mansion, or just a big house in a dream place, not everyone will invest in what they truly want, or be able to for that matter. However, there are some ways to get closer to what is dreamt of, like adding a few amenities that won’t break the bank but increase their custom homes’ values.

Many buyers today are simply working on their existing homes and turning them into custom homes. These are people who don’t really want more square footage, but want their home to be transformed into a dream or luxury home. They save a fortune doing so, and easily up the value.

The Latest and Greatest

Anyone considering this investment wants to know what the latest is when it comes to luxurious amenities.

Wet Rooms

One trend is that of having a Jacuzzi having moved to a “wet room.” What exactly is a wet room? It’s basically the same experience only faster. Instead of having to wait for a hot tub to fill or get warm enough, they can turn on jets and the water surrounds them in an instant. There may still be a tub or somewhere to sit but it’s much different and more sensible.

As far as tubs and showers, stone and hand-crafted options are on the rise. Infinity pools are popular outdoors and a lovely waterscape.

Finishes

High-end finishes include many different textures. Wall, floor and ceiling finishes are ever so important for a luxurious atmosphere. Using raw materials to include stone, wood and glass are popular trends in custom homes. This goes along the trend of bringing the outdoors in, and indoors out. Everything sort of melds together to create a refreshing, natural feel. While these surfaces are finished, they don’t necessarily feel as such, as they did in the past.

It’s in the Details

Attention to detail is common with luxury, custom homes. Plumbing fixtures, cabinet alignment, patterns and more is all taken into consideration when crafting interiors and exteriors. Great rooms are not just a combination of rooms anymore, but feature a consistent theme even within the finishes and materials. Colors fall within a single palette, and even lighting stays similar to create a feel of flow.

New and Hot

Deluxe and professional spa rooms, full outdoor kitchens with wood-fire for cooking, custom wine cellars that include entertainment space and energy-efficient additions like solar panels, smart home systems and geothermal heating are all trending.

Further, keep in mind these aforementioned examples of some of the best luxury amenities offered on the custom homes market today. If a home for sale has these options and is affordable, buyers are in luck. In most cases, custom homes are renovation projects to be a great deal.

These are just some of the amazing home amenities buyers crave in custom homes, put them on the list when designing. They are:

1. Fire and Water Feature – indoors and out

2. Wet room – not the kind for bringing in muddy dogs and children, a personal spa.

3. Stone surfaces – walls, countertops, cabinets and more with stone that is consistent in pattern.

4. Technology or media room – still a huge selling point, somewhere to escape and relax.

5. Open kitchen for entertaining – have the entire party in the kitchen!

6. Wood finishes – nature calls for more wood, stone and similar finishes throughout.

7. Entertainment wine cellars – throw a party in the wine cellar, have tastings, this is so convenient and impressive.

8. A great room – new great rooms aren’t just big, but carry consistent elements.

With this knowledge, anyone will be ready to build custom homes to their fantasy specifications – happy planning and building!

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