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How to Get Your Child to Learn More About Real Estate

Teaching can be fairly easy when it comes to your first few years as a parent. You’re taking care of your little one, you’re letting them develop their own interests, and on top of that you’re teaching them the basic things such as ABC and counting to ten. While the theory of teaching and taking care of children sound simple, in practice, it can be quite challenging of course. But as your child navigates through life, they’ll learn more about how to survive once they reach adulthood so they can thrive.  While school can teach plenty of life lessons to your children, one thing they don’t teach is real estate.

Real estate and real estate investing are important. It needs to be known and understood so adults can purchase their first house. But property value isn’t the only thing either, interest, mortgage, banks, savings, and overall financial health also play a major impact in this as well. These are things that aren’t exactly covered in school, quite possibly in college as well.  So, how can you teach this to your little one? How can you get them to understand the importance of financial health and the impact of real estate? These helpful tips may be all you need to get started on this journey.

Why is it so important to teach children about real estate?

Many people think that it is not a good idea to teach their kids about real estate because they want them to have a carefree childhood. While that’s understandable, a child has to learn so they can make smart decisions once they reach adulthood. Besides, there are many benefits to learning about real estate at a young age. Children who are taught about real estate at an early age are more likely to purchase their first home before the age of 30.

Start by teaching them the value of a dollar

Children believe that money is an infinite source, that there doesn’t need to be any work, trade, or anything in order to receive it. It’s natural for kids, especially small kids to have their train of thought. So, what can be done? First, begin by teaching them that money is a scarce resource and it’s not something that their parents can pull out of thin air.  You just need to find an age-appropriate way to get them to understand, and one of the classic ways is through chores.  Getting them to understand money at a young age is going to ensure financial wellbeing.

Letting them work for the money will also let them know that there needs to be some sort of trade to get money. It also teaches them that if they want something, they will need to work for it, and it also teaches them that the things they have, are thanks to their parents working for it.  It takes a little while to teach, but kids will eventually get the understanding.

Let them play video games

While real estate is something that can be difficult to grasp for someone at any age, the sooner, the better. So teaching it to them at a young age will be optimal. If you love video games, then this could be a great and engaging way to have some fun with your child while also teaching them about real estate.  There are plenty of video games that are out that do teach basic economics, financial health, and real estate. You, of course, will want to choose a game that can nicely reflect on your child’s age.

While The Sims franchise can be a great option if you have a tween to teenager, for the younger kids you could opt-in to playing Animal Crossing or Harvest Moon. This family fun bonding time can be one of the best ways to get your kid interested in real estate.

Get them involved

If you’re a property owner, why not talk about your property with your little one? You can explain the ways that you’re working towards raising the value of the property (such as home renovations or curb appeal), but if you have multiple properties, you can get them involved in that as well.  This can include letting them look at a lodger agreement template for your tenants, but you can even teach them the odds and ends of how you invest.

 Children are visual learners, so getting them to learn all about this up-close and personal can be a great way to get them to understand all about it. So just bring them along when you’re working on boosting property value, managing money for your real estate, and when you’re hunting for real estate to buy. It can be a great educational experience for them. 

Everything You Need to Know About the Financial Aspects of Buying Property

There are many important financial considerations when buying a property. Therefore, it’s crucial to understand all the costs associated with the purchase to decide whether or not to buy. This blog post will discuss some of the critical financial aspects of property buying. 

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1) The Down Payment

One of the most important financial aspects of buying a property is the down payment. This is the amount of money you pay upfront to secure the property. The down payment usually ranges from 20% to 40% of the total purchase price, although many exceptions exist. 

If you don’t have enough cash saved up for a down payment, you may be able to get a loan from a bank or other lending institution. However, be aware that taking out a loan will increase your monthly payments and could also add years to the time it takes to pay off your mortgage. 

2) The Mortgage

Once you’ve saved up enough for a down payment, the next step is to get a mortgage. A mortgage is a loan from a bank or other lending institution that enables you to purchase a property. The mortgage will have specific terms and conditions, including the amount of money you need to borrow, the interest rate, and the length of time it will take to pay back the loan. 

It’s essential to shop around for the best mortgage rates and different mortgage brokers, as they can vary significantly from lender to lender. Also, be sure to read all the fine print before signing any paperwork! 

3) The Closing Costs

In addition to the down payment and mortgage, there are also closing costs associated with buying property. These are fees charged by the lender, real estate agent, government, and others involved in the transaction. Closing costs can add up quickly, so it’s important to factor them into your budget when considering whether or not to purchase a property. 

4) The Maintenance Costs

Once you’ve purchased a property, there will also be ongoing maintenance costs. These can include things like painting, repairs, landscaping, and more. It’s important to factor these costs into your budget when deciding whether or not to buy a property. 

5) The Property Taxes

Another important financial consideration when buying a property is property taxes. These are levied by the government and can be a significant amount of money, depending on the property’s value. Therefore, it’s important to factor in property taxes when budgeting for your purchase. 

6) The Insurance

When you purchase a property, you will also need to get insurance. This protects you in case of damage to the property or if someone is injured while on the property. The cost of insurance will vary depending on the property’s value and the location. 

There are many important financial considerations to consider when buying property. By understanding all the associated costs, you can make an informed decision about whether or not purchasing a property is the right choice for you.

Selling a Property? Check Out These 4 Tips To Increase Your Returns

In 2020, the pandemic and unstable economic climate have caused many families and households to gain interest in homeownership. In turn, this has caused a housing market bubble, which has caused the median home prices to skyrocket to 407,000 US dollars – an 18% increase compared to the previous year!

So, if you have decided to put your house or property on the market today, you can obtain great returns from your asset – especially as house prices are so high. However, the competition in the housing market has never been fiercer, and understanding how to make the most of your property is essential. If you are not sure where to start, check out the tips below. 

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Consider Staging the Property

If you have an empty or older property, your real estate agent might have suggested you stage your property to close the sale faster. However, of course, this service comes at a cost – but is it a cost worth paying)

The 2015 National Association of Realtors Home Staging Report tells us that staging a property can increase its market value by 10 to 20%. And, if you are looking to close the sale fast, you should keep in mind that staged properties are sold 85-90% faster than others. 

While this isn’t necessary, your home can gain value and find a new owner in less time. After all, potential buyers will want to imagine themselves living in the property, and an unkempt living space might not be so appealing!

Hire a Marketing Agency Specializing in Real Estate

When deciding to sell your home, you will have to treat your property as an asset. Just like in the case of other industries and sectors, to close the right deal, you will need to tap into the right market, target the right buyers, and understand what channels of communication to use. 

Working with a specialized marketing agency that focuses on the property market can help you brand your home. The marketing agency will be able to target potential buyers by demographics, income, marital status, location, age, and time of day. 

Invest in High-Yield Renovation Projects

If you are looking to buy a home, you should look at your finances early and complete all the projects to increase the returns from your sales before putting it on the market. However, not all renovation projects will yield the same returns! For example, renovating a kitchen or a bathroom are expensive projects which can increase your family’s comfort level but can prevent you from recouping the money spent. 

Instead, redoing the sidings, garden, flooring, and repainting the property are inexpensive tasks that can increase your home’s market value.

First Impressions Matter!

Nothing boosts the value of a property like its curb appeal. Your potential buyers are likely to feel an emotional drive and make up their first impression of the property within seconds of seeing it. 

Luckily, you can improve the curb appeal of your home by painting the exteriors, fixing the roof, landscaping the garden, and improving your driveway. And don’t forget to repaint your front door! 

Shopping for a Home? Here Are 6 Ways to Save Money

A home is one of the best investments you can make in life. For most people, this is also the biggest single purchase they make in life. With your own home comes freedom, and this is one reason most people save right after getting the first job. If you’re shopping for a home, you want to get the best value for your money. This post explores some simple ideas to help you save money buying a home.

Work With a Local Real Estate Agent

If you want to make the home purchase process easier and save money, use a local realtor. These real estate professionals have an intensive knowledge of the market. They know everyone selling and have different properties in the area at varying prices. If you want to save money, the real estate agent can find you a house suited for your needs and at the price range you want.

Look for Features and Additions

When shopping for a home, look beyond the structure and instead look at other features which add value to the property. From solar panels, water and hardscape features, oil tanks, outdoor additions, air conditioning to skylights, there are many features which can save you money. Once you move in, you don’t have to invest more money to improve the property.

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Boost your Credit Score

The higher your credit score, the more affordable your loan. As you continue saving towards the down payment of your home, make sure you improve your credit score. Evaluate your finances and make sure you repay all bills on time. Pay down your credit card debt and avoid taking up another loan in the meantime.

Shop for the Right Mortgage

Don’t rush to buy the first mortgage you come across. While your bank might look like the obvious source of financing for your home, consider other options on the market. The mortgage structuring also determines how much initial capital you need and the total cost of the loan.

Working with a financial advisor helps you identify the mortgage options on the market and also determines whether you need a fixed-rate or adjustable-rate mortgage. For such a huge investment, take your time to get the best deal. The last thing you want is to struggle with repayments or lose your home.

Save More Down Payment (Deposit)

If you want to enjoy the freedom that comes with homeownership, save more towards the down payment. This is the biggest secret to accessing affordable loans. If you have over 20% of the mortgage, you won’t have to pay for extra costs such as mortgage insurance.

Be Flexible

Everyone wants to buy that dream home, but it might not always be possible. For a start, you should be more flexible when shopping for a home to get the best deal. Don’t look for the grandest property on the listing, but also consider those that need some reworking. With some compromises, you can save on the home purchase and still get a good property.

Buying a home is not an easy process but with the right information, you can ace it and save money in the process. Use these tips to start your home buying process. 

Smart Tips For Real Estate Investors

It’s no secret that real estate is one of the better investments you can make. If you read any blog or book about the best ways to invest your money and build a healthy financial future, then it won’t be long before you see someone who’s making the case for property. But of course, while real estate can be a profitable area to invest in, it’s not as if success is guaranteed. Far from, in fact. There have been many people who have gotten themselves burned through this type of investing. To improve your chances of success, then it’s important to keep some smart tips in mind. We’ll run through a bunch below that’ll increase the likelihood that your real estate investment venture will be profitable. 

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Know the Area

There are properties all over the world, but should you invest in them, no matter where they’re located? It’s a mix of yes and no. In general, it’s best to veer towards ‘no.’ By focusing on your home area, you’ll be able to draw on extensive knowledge of the streets, homes, neighbourhoods, and other key factors that’ll determine how much you can charge for rent. However, though you’ll want to spend most of your time and energy on areas that you understand, it is possible to look at opportunities elsewhere. Or at least, you shouldn’t automatically reject a property just because it’s not in your postal code. The key thing is to conduct as much research as possible. Remember that the valuation of a property is about much more than just the condition of the house — the location plays a massive role, too. 

Your Niche 

There are different paths towards real estate success. One of the key decisions you’ll have to make is to decide how you’re going to get there. This usually begins by deciding what your real estate “niche” will be. It could be you want to rent high-end properties, homes for families, or to students. Once you’ve figured this out, you’ll need to look at the specific details and rules for the process. For example, if you’re going to rent a property to students, then you’ll need to know about HMO, or House in Multiple Occupation; a HMO guide will run you through everything you need to know. While you may want to dabble in letting properties in different areas from time to time, you’ll find that having a particular calling to one type of property rental serves you well in the long run. 

Get Your Finances Under Control

You’ll find that everything runs much more smoothly if you have a solid grasp on your finances. While there’s a lot of potential to improve your finances on a long-term basis, there’s no avoiding the fact that there can be a lot of expenses that you need to pay too. Indeed, this is something that many people overlook. It’s not just the cost of the mortgage, but also taxes, maintenance, all that stuff. One of the best gifts you can give yourself is to get the basics of accounting under your belt. You can learn this pretty quickly, yet it’ll be something that you draw upon again and again. 

Learn Some DIY

One of the best ways to keep your costs down is to learn some DIY skills. As with accounting, actually as with all things, this is something that anybody with a little time and patience can learn. The advantage of doing so is that you’ll be able to handle some of the jobs related to your property yourself, rather than having to hire someone else to do everything. Of course, the big jobs like the electrics and things should always be left to others, unless you’re specifically trained in those fields. But the non-dangerous jobs? They should be done by you. As well as saving money, it’ll also just save time, since you won’t need to go through the process of finding someone to do the work for you. 

Work with the Best 
You can’t build anything truly special on your own. You’ll always need other people, to varying degrees. While it can feel as if investing in property is something that you do on your own, the truth is that you’ll likely have to call upon others from time to time. And not only have to, but actually want to — it’s in your best interests. There are two specific areas where you should focus on bringing in the best people possible. One is with the jobs you need to be done. This is maybe less about “the best” (unless you’re renting high-end properties), more about finding trustworthy people. For the professional roles, such as your financial advisors, you will want to find the best that you can afford, since their expertise can make a big difference.

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Rainy Day Funds 

One of the tougher aspects of becoming a landlord is maintaining cash-flow. There can be many surprise expenses that can cause complications if you’re not ready for them. The smartest way to prep yourself is to build a rainy day fund, a stockpile of cash that you can use as and when it’s required. 

Screening Tenants 

Not all tenants will be good ones. You can prevent many headaches and complications by coming up with a screening process that puts high-quality candidates into your properties

Treat It Like a Business

Finally, remember that if you’re going to find long-term success with your real estate journey, then it’s important that you take it seriously. If you treat it as a small side hobby, then there can’t be too many surprises if it doesn’t turn out well. Treat it like a business, on the other hand, and you’ll have the correct frame of mind for success.

Conclusion

As we said at the beginning of the blog, real estate investing can be profitable, but success is far from guaranteed. It’s really important to follow the best practices; they will be your best defence against the pitfalls and dangers of real estate investing.