Monday, April 5, 2021 / by Capprice Kitchen
Building a home might sound like something reserved for the rich and famous, but the truth is, it might be easier than you think to get a construction loan.
What is a construction loan?
Construction loans are short-term, higher-interest-rate mortgages that cover the cost of building or renovating a home. The buyer qualifies for the final mortgage and the lender pays the contractor for cost on a pre-approved schedule. Once the construction is complete, the loan is converted into a traditional home loan.
Type of Construction Loans
• Construction to Permanent – Converts to a permanent loan with the interest rate locked in at closing
• Construction Only – Must be paid off when construction is complete, so the borrower will then need to get new financing
• Renovation Construction Loan – Cost of renovations are included in the original mortgage based on the value of the home after the repairs or upgrades. Best used for buying a fixer-upper property.; ...
Sunday, March 28, 2021 / by Capprice Kitchen
New homebuyers often tell their agents that they are looking for their “starter home.” Several factors go into this approach. These are typically younger buyers, often without children. They may be looking for a maintenance-free home, like a condo, or they might assume that starter homes are more budget-friendly. There are plenty of good reasons to buy a home with the assumption that it’s only for a few years, but it’s usually wise to consider the fact that it might be for much longer.
As 2020 demonstrated so clearly, things can change without warning. Homebuyers choosing a small condo with the intention of living in it for only a few years might later find themselves trying to carve out space for children due to employment challenges or market changes. The good news is that many times— once you add in association fees, taxes, and other costs—an older home that needs updating could be just as economical as a brand-new condo with all the latest desi; ...
Sunday, March 21, 2021 / by Capprice Kitchen
1031 Exchange – What is it and How Does it Work?
When you sell a real estate investment, you make capital gains, or at least that’s the hope. Those profits come at a price, though. You’ll owe taxes on the income, which depletes the money you earn.
There’s a way around it.
The 1031 exchange or like-kind exchange is a way around the tax issue. Not everyone qualifies and you must follow the instructions to the letter to make it work.
Here’s what you must know.
What is the 1031 Exchange?
You can do the 1031 exchange in one of two ways. A simultaneous 1031 exchange occurs when you sell a property and buy another on the same day. You transfer the profits from one property to another, never taking possession of the cash, which would trigger the tax liability.
A deferred 1031 exchange occurs when you sell a property, but don’t buy another property right away. To qualify, you must:
Within 45 days find another property to invest in ; ...
Monday, March 15, 2021 / by Capprice Kitchen
Easy Kitchen Updates on a Budget
If there’s one area of your home that you can see the largest return on your investment, it’s the kitchen. It’s the heart of the home and the first area most buyers look at when considering buying a home.
Not all home renovations increase your home’s value or provide any return, but kitchen updates pay you back in spades.
Don’t worry, you don’t have to (and shouldn’t) do a complete kitchen remodel. It’s too expensive and you won’t see enough of a return on your investment. But moderate kitchen updates are the sweet spot when looking to increase your home’s value.
Here are the easiest and least expensive updates to make that give you the largest return.
Paint the Cabinets
If you feel like your kitchen is too dark or outdated, give your cabinets a fresh coat of paint and add new hardware. For less than $400 you can have a completely new look in your kitchen that takes ...
Sunday, March 14, 2021 / by Capprice Kitchen
The #1 Reason Homes Don’t Sell (and How to Fix It)
You heard it’s a seller’s market right now so you couldn’t wait to sell your home. Except it’s not selling and you don’t know why.
You have plenty of people walk through it or inquire about it, but you aren’t receiving bids. What’s the problem?
The price. It’s the number one reason homes don’t sell.
Sellers price homes too high and buyers are turned off. They don’t even want to see the home.
So how do you know how much to sell your home for without losing? Here are the ways.
Know the Comparative Sales in the Area
The market dictates how much you can ask for your home. Buyers not only want to pay the market rate’ but lenders won’t approve a mortgage if the sales price is too high.
The market value plays an important role in the transaction. Do your research or work with a licensed professional who can research the comparative sale ...