The Many Reasons to Build a House

Your built your choice

Many houses are not built according to buyers specifications. When you decided to buy a house that’s on a real estate market, then you are giving in on your choices and making concessions with your house resolution.  Building, however is a great way to meet your house tailored needs and make it as you need and like. This is one of the greatest new building home incentives that’s getting popular.

Location

Another factor that affects the building incentive than buying is the location. A house that is perfect in size and structure might not be at a desired location. If it is in the right location then it might not be missing out essential amenities. For this reason building can be an excellent alternative. Choose the right location that best meets your demands and then build a house of your style and aesthetic.

    

Increasing Property value

By building you are not only creating a new piece of real estate that will be more modern and current, but you are also increasing property value for the homes around you. Building a home is a better economic investment. It is also one of the top new builder home incentives.

Necessary Upgrades

An existing piece of property requires additional upgrades in order to meet your needs and interests. However if you built a home, you can save the money by not having to upgrade according to latest trends and styles.

Tips for New Homeowners

Here are some final tips to make life as a new homeowner more secure.

Saving

Many unexpected expenses arise such as getting a roof fixed, buying a new water heater or even fixing window glass. For all this you need money. Right after the homeowner ship start an emergency fund or save in the bank so that you don’t get off guard at time of need.

·         Regular maintenance

Perform regular maintenance of the house. Take excellent care of the house as you have put huge amount of money in it. Fix and mend the broken things before they damage too much.

·         Housing Market

There is absolutely no reason to check the housing market if you don’t want to sell the house. You have just bought a house, live in it for few solid years before making the selling decision.

·         Don’t sell your home for your retirement

Continue to save the maximum in your retirement savings accounts each year. If you want to look at your home as a source of wealth in retirement, consider that once you've paid off your mortgage, the money that you were spending on monthly payments can be used to fund some of your living and medical expenses in retirement.

Terms to include in a Tenancy agreement

 A contract between a tenant and a landlord is called a tenancy agreement. It lets the person (renter) to live in a property for as long as he/she pays the rent and follow the rules. Tenancy agreement is a set of legal terms and conditions. If you have a tenancy agreement, it should include:

·         the names of all people (tenant, landlord and third party) involved

·         the rental price and method of its paid

·         information on how and when the rent will be reviewed

·         the deposit amount and how it will be protected

·         when the deposit can be fully or partly withheld (eg to repair damage you’ve caused)

·         the property address

·         the start and end date of the tenancy

·         any tenant or landlord obligations

·         which bills you’re responsible for

·         It can also include information on:

·         whether the tenancy can be ended early and how this can be done

·         who’s responsible for minor repairs

·         whether the property can be let to someone else (sublet) or have lodgers

The terms of the tenancy must be flexible and obey the law.

Types of Tenancy Agreements

There are three types of tenancy agreements used between tenants and landlords

1. Assured Shorthold Tenancy (AST)
2. Assured Tenancy
3. Regulated or ‘Protected’ Tenancy

Assured Shorthold Tenancy (AST)

This type of tenancy agreement is used while renting private properties. The agreement is arranged for six months period or somewhat longer like twelve months. The tenant and landlord can negotiate the sum of rent and the tenant has the right to challenge high rent or change the agreed rent.  A property may be subjected to an AST only if it is an accommodation and the landlord doesn’t live in it.

Assured Tenancy

A housing association or a housing trust uses Assured tenancy agreement for properties. This type of tenancy is beneficial and secure for those who want to live in property for a long duration while complying with the terms of the agreement.

Regulated or ‘Protected’ Tenancy

This tenancy agreement type offers the tenant the highest level of protection against eviction and increased rent

What is Tenancy Agreement?

A tenancy agreement is a written agreement between a tenant and a landlord. It is a set of legal terms and conditions by which you can live in a property as long as you wish until you abide by them. Both the tenant and landlord have rights and responsibilities given by law. The agreement is can be in written form or oral too. There are fixed term and periodic tenancy agreements. The fixed term runs for a specific period of time while the latter is updated on weekly or monthly basis. One of the terms for example in the tenancy agreement is the right of a tenant to live in an accommodation and the landlord’s right to receive rent monthly.

A tenancy agreement can either be made up of expressed terms or implied terms. The former includes tenancy agreement, if there is one, in the rent book, and/or what was agreed orally while the latter includes rights given by law or arrangements established by custom and practice.

A tenancy agreement includes:

·         Name and address of the tenant, and agent, provider, owner or manager

·         Starting and ending date of the agreement.

·         Amount of rent to be paid and the method of payment.

·         Some standard details

·         Any special terms like keeping a dog or a landscape management

Period of tenancy agreement:

·         Fixed term agreement – a property is rented for a fixed amount of time (for example, 6, 9 or 12 months)

·         Periodic agreement - when a tenant/resident lives there for an indefinite period

·         For caravan parks – short term lasts for less than 42 days and long term lasts for more than 42 days  

Before signing the tenancy agreement make sure to read the agreement carefully and understand and agree with the terms and condition.

Advantages of Renting

Renting or buying is a sizzling debate in real estate world. Advocates of buying come up with their theories that most features famous lines such as “wasting money in rent”, “mortgage interest rate deduction”, “monthly payment tension” and “forced savings”. On the other hand advocates of renting will say that “Renting is cheaper on cash flow basis”, “higher mortgage rates than rental yields” etc.

For renters the benefits of home ownership are overestimated while the costs are underestimated. An owner has to worry about repairs, rates, painting, fixture upgrades, landscaping and more. They might be tax-deductible but commitment remains. Renters normally don’t have to pay or worry for any of this stuff. The other reason behind the renting way of lifestyle is that renters get to live in sensational places that never been in the market to buy. Buying an investment property makes sense only if where you want to live and where you want to invest doesn't correlate. Renting also increases at a more moderate rate. Another advantage of renting is that if you are buying an investment property while renting where you live offers more flexibility for when a new job or family member when time to shift . If a renter wants to divert to investment, whether in housing or other property sector then they have enough income left over after their rent. But renting isn’t for everyone. The inability to renovate and put a personal stamp on a place can be frustrating. When 12-monthrental agreements are a norm, renting can also mean having to move just when you’ve got settled. Renting is insecure as well as beneficial.

Buy-to-let Investment Tips

Buy to let is a remarkable income investment esp. in times of stock market instability. Whether you’re an established landlord or your first buy to let property, there are ten essential things to consider for a good investment.

Select the right property to let

Finding the right property requires efforts and time.  It also asks for critical local market understanding. Firstly figure out the type of property you are looking for; whether it is a house, office or a school building you should buy. The property you choose must be situated accordingly for example the house should be in a residential area with huge gardens and good schools, offices be in markets with good transportation facility etc. Buy in a market you understand.  

Do the math’s

Calculate the cost of the house and the rent you will likely get. Mostly buy-to-let buyers want 125% of mortgage repayment covering rent. Once you decide the mortgage rate and the likely rent you will get, decide again whether you want to go ahead or not.

Chosean agent

Being a landlord can be hard work. Tenant can calls you any time to sort out problem in the house. But you can hire a letting agent for this purpose. When hiring a letting agent you can either let only or full management. Let only is cheaper.

Let Only: This type of agent will advertise the property, find a tenant and collect the rent.

Full management: This agent will handle repairs and maintenance, chase unpaid rent and carry out inspections of the property.

Paying the Tax

Pay regular income tax on the rent you take like a good citizen. May costs tax deductible.