Move-In and Move-Out Inspections For Tenants / Landlords
Posted by property on May 7, 2013 in Tenant/Landlord | 0 comments
A tenant should by no means move into a rental property until each of the following items are accounted for by all involved parties: All necessary leases and addendums have been signed and dated by all parties Possible security deposits, first month’s rent and/or any other monies have been paid prior to moving and include a written receipt. Landlord has provided tenant(s) with keys to rental property. Landlord and tenant have conducted a walkthrough of the premises to conclude the condition and ensure it’s ready for the tenant. It is imperative not only for the landlord but also for the tenant to keep proper documentation associated with the rental property. In such file one should keep deposits (security deposit & 1st month’s rent), signed lease, move-in inspection sheet with all damages listed as well as any other documentation pertaining to the property. Within this file, ensure to have a list of existing damages prior to moving in to the rental property. The list of damages needs to be signed by the tenant along with the landlord. The landlord as well as the tenant should receive a copy of such list in order to avoid possible future disputes. This is also to protect the tenant; that way the landlord cannot charge and hold the tenant accountable for damages that were in the rental property prior to moving in. Be advised that when signing a lease, you are actually signing a legal and binding contract. In such contracts responsibilities and benefits for the landlord as well as the tenant are precisely described and must be adhered by. It is very important, as a tenant, to understand everything within your lease and if you have any questions, make sure you ask your landlord. Landlords should answer each question honestly and make sure the tenant understands his or her responsibility concerning the rental property. In the event you as the tenant fail to review and comprehend the lease, be advised that this...
Smart Way To Use Credit Cards
Posted by property on Mar 8, 2013 in Financial Advise | 0 comments
The use of credit for investing has been one of the big contributors to the prosperity of the United States during the turn of the 20th century. We see it all over middle Georgia. It was also the main cause of the great depression of 1929 and a major contributor to our depression in 2008 (Note: The US has shown an economic downturn roughly every 40 years, anyway.). The use of leveraging someone else’s money or extending credit to invest has created most of the wealth you see today. Investing without credit means that you must use all of your own money to complete a transaction. That can take days or even years, depending on how big the transaction is (On the other hand, inflation might not have climbed so fast, either). Now, credit cards and debit cards have taken credit to a whole new level. Let’s look at how credit cards are being used and how they should be used. Most people buy items on a credit card that they don’t have the money to buy “quite yet,” so they walk into a payment commitment with a relatively high interest rate. They add the payment amount to the monthly budget and hope there is enough to cover it. A $400 shopping trip for school clothes, a computer, groceries, or to entertain clients, turns into an $800 expense for you at $65 a month. Was it worth it? It happens every day. It’s called spending without a plan. There is a better way. Believe it or not, a credit card payment is just like any other loan contract, except it’s unsecured. If you don’t have the money to buy an item outright, the best bet is not to buy it at all. Here are some rules to go by. Credit cards extend money for purchases for a period and then you pay them back, either all at once or on a payment plan. A good rule is if...
Tax Tips For Home Buyers
Posted by property on Feb 14, 2013 in Financial Advise, Tax Tips | 0 comments
Taxes play a big role in buying a house, but you may be playing the right game with wrong house. Let me explain. You’re a renter. You rent every month for a “unit” you don’t own. At the end of the year, you cannot claim your rent on your taxes as an expense unless there is a business involved and we won’t get into that right now. That is a monthly bill you cannot do anything with but pay. Now, if you buy a house, you have the option to deduct mortgage interest and property taxes off your tax return and save some money every year. The interest on some lines of credit qualifies, also. Investors that own rental property can also deduct a percent of the purchase price every year. This gives you a chance to save money on a monthly payment most people have to pay anyway. At least this way you get some of that money back at the end of the year on your taxes. Now let’s go to the next level. Your home plays a big role in your taxes every year. Although you do get a pretty healthy deduction on your house interest and property tax, it may not be your best interest to use that as an excuse to keep a mortgage on your home. I have heard many people tell me, “I don’t want to pay off my house because then I have to pay more in taxes”. Are you kidding me? Let’s run the numbers and see. Let’s say I get my 1098 form (which shows how much you paid on principle and interest for the year) from my mortgage company. I paid $5000 in interest and $1800 in property taxes for the year that I can deduct on my taxes. My mortgage payment is $1000/mth. Here we go: Total payments on mortgage and property taxes for the year = $13,800 Total deductible amount on taxes = $6800 Total...
Mortgage 101
Posted by property on Oct 27, 2012 in Financial Advise, Real Estate | 0 comments
Mortgage 101 is for those of you who are new to the world of money. This should explain some details about a mortgage. When you are in the market for homes for sale, the first thing most people do is get pre-qualified from a bank. IMPORTANT: If you don’t like the terms from one bank, you can shop around. Most banks have different terms and rates in order to compete with others. Going to a mortgage broker can be helpful, just ask if they are a captive agent. Captive agents have contracts with certain mortgage companies and are not out for your interests. You want a non-biased, non-captive agent who can give you many options. When you find a company you want to deal with and get approved, you should walk out with a “Truth in Lending” statement once you have locked in an interest rate. This statement shows two important items – the annual percentage rate and the total payback. The APR can be locked in now before you leave or you can wait to lock it in if the rate is dropping like it has been doing for the last couple years. The lender can tell you what the rate is doing. If you’re getting a mortgage anyway, half a point can make a big difference. The total payback is not a typo, you will pay back that much if you stick to the amortized schedule they have you on. There are ways to cut that number down. Check out my article, “Advantages of an LOC”, to learn how to beat down that figure. The thirty year mortgage was created after the great depression under the Fair Housing Act to boost the housing market and help people get into a real home. It started as 20% financed if the homeowner can come up with 80% of the home price. Now we have 80% financed and 20% down. The structure of a standard mortgage is set up...
