01
Dec
By First Rate Financial Group
Investment Properties

What Are The Different Types Of Investment Properties You Can Purchase?

What Are The Different Types Of Investment Properties You Can Purchase? If you are looking for a way to diversify your investment portfolio, there are different options available. One option is to invest in real estate. With so many different choices, how can you select the right one for your needs? There are a few key points to keep in mind.

A Single-Family Home

One of the first options you might be considering is a single-family home. This is a versatile option that you can use to host long-term renters or vacation visitors. Single-family homes come in many shapes and sizes, but the variation can also make it a bit of a challenge. You need to think about landscape maintenance, potential repairs, and real estate taxes. Single-family homes can also be expensive, so they might require more upfront cash to purchase.

A Duplex

Another option you might want to consider is a duplex. A duplex is a house that is essentially divided into two parts. This option provides a number of advantages. You could potentially live in one side of the house and rent out the other, possible covering your mortgage, if you are comfortable living near your renters. Furthermore, living close to the renters could make it easier for you to manage the property. Because you could live in one side of the house, this option could be more affordable.

A Condo

In addition, you might be thinking about purchasing a condo as a rental property. A condo could be a nice option because you don’t have to worry about exterior maintenance. There is usually an HOA that is responsible for managing the landscape. The downside is that a condo typically comes with expensive HOA fees that could eat into your profits. Condos come in all shapes and sizes, so you should think carefully about whether this option is right for you.

Find The Right Investment Property For Your Needs

If you are thinking about purchasing a rental property, these are a few of the top options available. Each choice has its benefits and drawbacks, and you need to think carefully about which one is right for your style. If you have questions about investment properties, you should reach out to an expert who can help you.

04
Nov
By First Rate Financial Group
Home Mortgage Tips

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First HomeAre you starting to tire of paying your monthly rent to someone and never building any equity? Renting forever can be a significant pain, especially as you’re contributing to someone else’s financial well-being. The good news is that there are affordable real estate options out there for those investing in their first home. Below we will share a few excellent reasons why an apartment or condo might be the best choice for a first-time home buyer.

A Manageable Monthly Payment

In most markets across the country, condos and apartments are available at a significantly lower cost than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will, in turn, be lower. If you are single or a young professional trying to start a family, that extra money can be a massive boost to your monthly budget.

Note that while your monthly mortgage payment may be lower, you are still responsible for other maintenance and upkeep fees. The most common is known as a homeowners’ association fee, to which all condo owners in the same development contribute. These funds are used to upkeep the building or property as well as things like landscaping, a pool or gym, and other amenities.

A Smaller Down Payment

In the same vein, buying a less-expensive home also means that you can put a smaller down payment on it when you close the sale. In many cases you are required to place a certain percentage – typically 20 percent – down to avoid having to purchase private mortgage insurance. Having to commit less in your down payment leaves more money in the bank for other purposes.

An Excellent Future Investment Property

Don’t forget that when you are ready to upgrade and move into a larger house, you can keep a condo as a rental or investment property. Once your mortgage is paid off, you are only responsible for the monthly maintenance fees and taxes. So if you can rent the condo out to a tenant, you will have an excellent source of cash flow that can help to pay for your new home or fund other activities.

The above are just a few of the many reasons why a condo can be a great starter home for first-time buyers. To learn more about your mortgage options, contact us today. Our team is happy to help.

02
Nov
By First Rate Financial Group
Home Buyer Tips

Downsizing? Here’s What You Can Expect When You Move From a House to a Condo

Downsizing? Here's What You Can Expect When You Move From a House to a CondoWhether the kids have moved out or you just aren’t using the extra bedrooms, having a house that feels ‘too big’ is rarely fun. In today’s post, we will share a few changes you can expect when you downsize from a large house to a smaller apartment or condo.

Why Downsize At All?

As you might imagine, having too much space is the primary reason that couples and families downsize. Larger homes cost more to maintain and can feel empty if it’s just one or two people living there. In many cases, old items and clutter tend to build up as there is so much storage space. Downsizing to a smaller home helps to maintain a lifestyle that is more efficient but no less luxurious.

Ask Yourself: Are You Ready?

Another consideration that you will need to make: are you ready to move? If you are retired from work, then you likely have enough time on your hands to manage a move. Conversely, if you and your spouse are both working full-time and live near your workplace, you may want to source a smaller home nearby.

Don’t forget that if you own the house you are living in now, this might mean having to list and sell it while buying your new home. This is a common situation and isn’t a significant problem, but it will require a bit of scheduling and financial planning.

The Hardest Part: Choosing What To Keep

Ask any couple or family that has downsized their home about the toughest part, and many will share that it was choosing what stays and what goes. When space is at a premium, everything from shoes to appliances needs to be considered.

Spend some time going through each room in your house, taking an inventory of what you have. Are there any family heirlooms or other emotional items that you can’t part ways with? After that, is there anything that will be usable in your new home? Everything else should be considered fair game. Sell it, donate it or toss it out.

Moving to a smaller home can seem challenging at first, but it is a lifestyle choice that can pay significant dividends. When you are ready to make a move, contact our professional real estate team. After discussing your wants and needs, we will be happy to recommend some perfect local listings.