Real Estate Tips Archives – Michael Inkman

3 Key Reasons Why Buying Your First Home Is Like Planning a Wedding

July 21, 2022 by Michael Inkman

3 Key Reasons Why Buying Your First Home Is Like Planning a Wedding You may not see the connection right away, but buying a home and planning a wedding are two experiences that require certain skills and challenge you in similar ways. Check out the three key similarities below!

1. Budget

Whether you’re buying your first home or planning a wedding, you are likely facing one of the biggest financial obligations of your life. That’s why, in both cases, it is essential that you pick a realistic budget and stay within it.

Sounds simple, but in either case it can be difficult! Unexpected obstacles may force you to spend more than you planned, or you may find yourself wanting to overspend as you find things that would be “just perfect” additions even though they don’t fit your budget. These temptations can be expected, but it’s important to remember the big picture. When it comes to your budget, pick it and stick it.

2. Details

When it comes to a home purchase or a wedding, there are countless details to consider. It’s not a simple, pre-packaged purchase, there will always be big decisions that you have to make and if you overlook something you may regret it later on.

Some decisions that you face will be similar in both experiences: Does the location work for you? Does it work for your friends and family? What is the parking situation? Is it appropriate for the climate? Will you be satisfied with your decision in the long-term?

Other details will be more unique to the situation: Do you need a cocktail hour? Do you need a walk-in closet? What style of photography would you like? Is there too much traffic noise?

Either way you’ll have lots to think about, and you’ll become acutely aware of ‘the little things.’

3. You’ve Got Style

Both your wedding and your home say something about you, they’re a reflection of your personal style. When being presented with so many choices that are particularly catered towards your personal taste, you’ll learn what you like and what you don’t. However, you’ll also learn what it is that you absolutely need, and what you’re willing to budge on.

Whether you’re choosing a wedding dress that is both gorgeous and functional for your ceremony or deciding whether or not you need an extra bedroom in your home, you’ll learn what it is that you’d want in a perfect world, and what is absolutely necessary for your current situation.

What To Think About Before Investing In Real Estate

April 21, 2022 by Michael Inkman

What To Think About Before Investing In Real Estate Do you want to invest in real estate? If you are buying property as a real estate investor, there are a number of important factors to consider. Take a look at some of the most important factors to think about before you decide to sign your closing papers.

Location, Location, Location

Just as with your primary residence, it is important to think about the location of your investment property. Location is the most important factor in the value of just about every property, and your investment property is no different. You need to think about the proximity of your property to amenities, the safety of the area, and its proximity to major highways and interstates. Pay close attention to what property values in the local area have done recently, as this could give you an idea of what to expect moving forward.

Your Investment Horizon

How quickly do you need access to the money? You may think that the property is going to go up in value, but this is an unrealized gain until you decide to sell it. How long can you wait before you sell the property? Do you want to purchase the property and lease it out to long-term renters, rent it out to short-term renters, or simply repair the house and flip it for a profit? Different properties are better for different situations, so think about your investment horizon before you purchase a property.

Expected Cash Flow

As a property owner, you still have to cover the overhead expenses. This includes your mortgage, homeowner’s insurance, and real estate taxes. Therefore, make sure you understand how much rental income you can generate if you decide to purchase that property. Keep in mind that you may have some tax deductions you can claim as a rental property owner that might make these overhead expenses a bit more affordable.

Find The Right Property For Real Estate Investing

These are just a few of the many factors you need to think about if you are looking for real estate investment opportunities. The right property for one person is not necessarily the right property for someone else. Think about these key points before you decide which property you want to buy.

The ‘Debt to Income’ Ratio and How It Affects Your Home Purchase

December 22, 2021 by Michael Inkman

Real Estate Terms: The 'Debt to Income' Ratio and How It Affects Your Home Purchase The real estate market is rife with terminology that can make a home purchase seem more than a little complicated. If you’re currently looking for a home and are considering your loan options, you may have even heard the term ‘Debt to Income’ ratio. In the interest of simplifying things, here are some insights on what this term means and how it can impact your home investment.

Determining Your ‘Debt to Income’ Ratio

It’s important to consider what exactly your DTI ratio is before your home purchase as this will quickly determine how much home you can actually afford. To calculate this number, take your monthly debt payments – including any credit card, loan and mortgage payments – and divide them by your monthly gross income to get a percentage. In the event that your monthly debt is $700 and you make $2800 in income, your DTI is 25%.

What Your DTI Means To The Bank

The DTI is a very important number when it comes to a home loan because it enables the bank to determine your financial situation. A DTI of 25% leaves some wiggle room, as most banks will allow a DTI percentage that runs between 36-43%. In the case of the above example, this means that the most debt this person could take on per month is about $1200. While banks vary on this percentage, credit history plays an important part in the DTI that will be allowed.

Paying Down Your Debt Or Purchasing A Home

In the event that you have a DTI ratio that exceeds what your bank will allow, you will need to consider your debts before moving on to investing in a home. If you’re planning on purchasing a home in the next year, it’s a good idea to tackle high-interest debt first. However, if you happen to have a chunk of money saved up that you’re planning on putting into a down payment, it’s worth considering that putting more than 20% down may slightly increase the DTI percentage your bank will accept.

There are many fancy terms that go along with the world of real estate, but it’s important to understand what they mean so you can make them work in your favor. If you’re calculating your DTI ratio and are planning a home purchase down the road, you may want to contact your trusted mortgage professionals for more information.

3 Easy Ways to Make Your Home More ‘Pet Friendly’

December 2, 2021 by Michael Inkman

3 Easy Ways to Make Your Home More 'Pet Friendly' Whether you’re moving to a new home or you have a new family pet, it can be a struggle to make the place a little friendlier for them. From the garbage can to the cupboards and doors, there can be a lot of dangers that have the ability to hurt your furry friend you might not be aware of. If you’re looking for some simple ways to make their life a little easier, here are a few things you can do.

Take Care Of The Trash

The image of dogs sifting through the trash is common for a reason, so it’s important to guard your animal against the dangers of the dustbin. In addition to taking out any perishable goods on a consistent basis, it’s a worthwhile investment to purchase a tougher trash bin that your animal can’t get into. This will ensure they won’t be able to get at foods like fruit pits, coffee grounds and chocolate, which can be very harmful to their system.

Pick The Right Flooring

If you have the choice, ceramic tile or hardwood can be a great way to alleviate the tidy-up of having a live-in pet since you can easily wipe or sweep away the damage. If this isn’t possible and carpet is your only option, stick with something that closely matches the color of your pet. As well, if you’re letting your pet on the furniture, it’s worth investing in materials like leather and suede that are more durable and easy to clean.

Give Them Their ‘Space’

You may not have to worry about cleaning up after your pet as much if you can provide them with a space that’s all their own. While it doesn’t have to be anything fancy or sprawling, providing a comfortable bed where they like to nap and a water bowl or selection of toys will do the trick in making them feel right at home. It may also have the added benefit of keeping them away from the family couch!

Many homeowners are so pre-occupied with making themselves comfortable in their family home that they forget about the animal in the family. While it won’t necessarily take much to please your pet, watching the waste and giving them their own comfortable area can go a long way in making your home pet-friendly. If you’re currently in the market for a new home, contact our trusted real estate professional for more information.

Luxury Selling: How to Qualify Potential Buyers to Ensure They Can Afford Your Home

November 2, 2021 by Michael Inkman

Luxury Selling: How to Qualify Potential Buyers to Ensure They Can Afford Your Home Luxury estates can be a challenge to sell. The more expensive a home is, the less potential buyers there are. The biggest hassle is going through the process with people who can’t actually afford the home, only to have it fall apart at the last minute.

Here are some ways to make sure the property is only being viewed by qualified buyers.

Only Accept Offers From Buyers Who Are Pre-Qualified From A Lender

One of the only ways to guarantee a buyer will be able to afford a luxury home is to let the bank do the work on your behalf. By only accepting offers from people who have been pre-qualified by a lender, it allows the seller the peace of mind of knowing that every offer is a legitimate one.

Luxury Agents Will Have Vetted Their Clients

Working with a real estate agent with a specialty in luxury properties is one way to make sure the vetting process is handled effectively and legally. These agents do not have time to waste with people who can’t afford a home in this price range and they will have a roster of clients who are not only looking for a new luxury house, but can afford one. Talk to the neighbors and see who their buying agent was. This will give an idea of which professionals are working with clients who can afford the neighborhood.

Use Broker Open Houses Over The Traditional Open House

Hosting an open house in a luxury home is a dangerous prospect. There is no way of knowing how many visitors can actually afford the home and how many just want to look around to see how the other half lives. On top of that, it’s a serious safety risk as luxury open houses bring out potential thieves to case the place and see what the security is like.

For luxury sellers a broker open house is the best course of action. These open houses are closed to the public and only available to brokers who have clients that are looking for a luxury home.

There are more luxury homes on the market than buyers and standing out is important if you want to sell quickly. Trying to sell a home like this on your own is a disaster waiting to happen. Make sure to talk to real estate agents in the area who deal with luxury properties until you find one you are comfortable with. Contact your local real estate professional today for more information.

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