Reasons Why Investing in Real Estate is A Great Move for Wealth Creation

If you are looking into moving from a simple savings account to letting your money work for you, Pensacola real estate might just be the best investment option you could wish for. Although this is not necessarily a glamorous industry, real estate is one of the best ways to create wealth in the long-term. There are a few reasons why you need to invest in rental properties. 

Cash flow

One of the best reasons to own rental property is the regular cash flow. Real estate is a mostly passive investment, giving you the freedom to reinvest, travel or build a business with the profits. The cash flow is also far more predictable and stable than most other options

Tax benefits

The government favors rental property owners over other entrepreneurs. You can expect to pay less tax on Fort Walton Beach real estate rentals than you would with most other types of businesses. The tax benefits include lower tax rates and depreciation. In addition to this, you are not required to pay for self-employment tax. 

Loan repayment

If done correctly, you might not have to go out of pocket to pay for your mortgage. Your tenant does this in form of rent. Once the repayment has been cleared, you own a significant asset outright. You can then choose to sell the property or continue to rent it out. 

Appreciation

Generally speaking, the value of real estate goes up. Regardless of financial conditions and other factors affecting the housing market, property values climb higher in the long-term. 

Protection from inflation

Inflation is a reality of life and is largely unescapable. Owning a Gulf Breeze FL real estate can help to hedge against inflation. As the price of everything goes up, so does that of real estate and property. Even as the value of the property rises, the fixed-rate mortgage payment does not. This means that cash flow increases even as the cost of living rises. There are few business opportunities that offer this type of protection or comfort. 

Control

Lastly, owning a real estate investment is largely your responsibility, and puts everything within your control especially compared to Wall Street and other similar investments. It is much easier to identify problem areas and take the appropriate action steps. If the market gets competitive, you simply need to boost your advertising. 

As much as investing in real estate is a great idea, it is important to work with an expert with insider knowledge on the best opportunities. The Scott Gregory Team is a perfect partner whether you are looking for a residential or investment property. With insider knowledge, great experience and unrivalled expertise, you will be working with the best in the business. 

Great Pensacola

Keller Williams Realty Emerald Coast

8494 Navarre Parkway

Navarre, FL 32566

Phone: 850-982-2039

www.greatpensacola.com

Why this is The Best Time to Invest in Real Estate

If you have been seriously considering investing in Cantonment real estate, now might be the best time to take the leap. 

Letting your money work for you is the best way to become wealthy, and there are few better ways to do this than to invest in real estate. If you are still not convinced, there are some great reasons as to why this is the best time to get started on your real estate investment portfolio. 

Low interest rates

Even with significant events such as the Brexit that have affected financial markets, the real estate industry remains largely untouched the global events. Interest rates are at the lowest that they have been for the past decade. The math is simple, low interest rates translate to low monthly payments and therefore maximum profits. There is also no reason to believe that there will be a significant rise in interest rates at least for the next year. 

Banks are lending money

Due to the 2007-2008 collapse of the real estate market, banks had no choice but to constrict their lending criteria. The average American found it nearly impossible to get a loan or mortgage for Pace Florida real estate. With the stable housing market, more and more banks are willing to lend again, and have relaxed their standards. With a decent credit score, and stable job, it should not be too difficult to get a fixed-rate loan. 

Reasonable prices

Real estate prices are not what they were in 2011-2012, but with a little research, it is possible to find great deals. Banks foreclosures for example offer great deals on good real estate. 

Technology has made investing safer

Technology has made it incredibly easy to invest and manage real estate. From advertising units, to screening tenants to ordering for cleaning or handyman services, virtually anything can be done online now. It is possible to manage a sizeable portfolio even with a full-time job thanks to technology. 

Knowledge is readily available and is free

Learning about Navarre FL real estate investing in the past largely involved paying exorbitant fees to get insider knowledge and secrets. The internet has made a wealth of information available to novice entrepreneurs and investors on demand. From podcasts, to eBooks to blog posts and much more, there are many sources of information to get you started on your portfolio. 

There are many more reasons to start investing in real estate today. The opportunities that are available may not be there in just a few years.

Great Tips for Selling a Home for the First Time

The current housing market is nothing like it was even a decade ago, and this is something that even experienced home-sellers should realize. Today’s prospective buyer has more tools and is pickier than ever when considering Pensacola FL real estate. It is therefore prudent to keep a few factors in mind when listing a home for the first time to ensure that the process not only goes smoothly, but that you get the result you can be happy with.  

Be reasonable with your pricing

The first two or three weeks of the showing will record the most interest. Setting the price right from the very beginning increases the chances of selling your home in the shortest time possible. Check what nearby and comparable homes are going for and adjust your prices accordingly. The key is to set a reasonable price and to manage your expectations. 

Realize that losing money is a possibility

The best outcome is getting the price you hoped for, but you need to realize that it doesn’t always work this way with Fort Walton Beach real estate. What you paid for the home, an assessor’s estimate or appraised value does not always reflect the current housing market. To put it in perspective, your home is only worth as much as a prospective buyer is willing to pay for it. A good agent can help you get the price you want for it, but keep in mind that this may not always be possible. 

 Promotion is the key to selling your home

This is an important point to discuss with your agent, how she intends to reach your Gulf Breeze FL real estate target market. A good agent knows who your home is likely to appeal to, and how to reach the target audience. High quality pictures on listings’ websites are great for this purpose, and so is having a phone number to someone who can answer questions or provide more information. 

Extras make good selling points

Rather than selling appliances that may be difficult to move, consider adding them to the sale to sweeten the deal. A prospective buyer is much more likely to pay full price for a home that includes a washer/dyer set or wall mounted flat screen TV. 

All in all, the best way to ensure that your first time sale goes smoothly is to work with a good agent. The Scott Gregory Team for example puts certified, experienced and vetted agents at your disposal to help you get the best outcome from the transaction. 

Great Pensacola

Keller Williams Realty Emerald Coast

8494 Navarre Parkway

Navarre, FL 32566

Phone: 850-982-2039

www.greatpensacola.com

What to Do Before Hiring an Agent to Help Sell Your Home

Finding an agent to help you sell your Milton FL real estate is only one part of the process. There are a number of things you need to do before actually meeting with the agent to ensure that the interaction and subsequent transaction goes as smoothly as possible. Anything that you can do to make the job easier for the agent will be mutually beneficial. With that in mind, there are a number of essential tasks to perform before calling the agent. 

Find out the values of nearby homes

It is likely that home prices have changed in the years since you bought your home, so it is prudent to check comparable home values prior to calling a realtor. This helps you and the agent to get on the same page as far as your home’s value is concerned. Look into recently sold properties in your area. Your local online real estate website is a great source of information in this case. 

Double-check your mortgage

Get an exact figure on how much you owe on a mortgage if anything. This will help the realtor come up with the best strategy to sell your home. If you owe more on the Navarre Beach real estate than its actual market value, come up with a precise figure to help the agent make a good estimate on what you are likely to get from the sale. 

Identify disputes and liens

Unencumbered property is a real estate agent’s dream because it is the easiest property to sell. This however is not always possible, so it is important that your agent has as much information as possible about potential problems that could delay the sale. Think through issues that might cause a lien to be imposed on the property including problems with contractors, tax issues, disputes with neighbors and any other problems. The more the realtor knows, the more likely these issues can be resolved before the house goes on the market. 

Clean the home

Lastly, it may sound like a no-brainer but clean the home thoroughly before calling a Pensacola Beach real estate agent to inspect the property. An agent who thinks your property is great will be more motivated to get the best price for it, and put in the best effort to get it off the market as quickly as possible. Don’t forget that curb appeal also plays a role in your overall home’s aesthetic appeal so clean the outside as well as the inside.

The Matter of Contingencies In Your Pensacola Real Estate Contract

The contingencies in your Pensacola real estate contract refer to the conditions that must be met before the closing process can start. These conditions can include inspections, insurance, and financing matters, among others.  Keep in mind that contingencies are important for home buyers because these provide an out in case the deal doesn’t push through as planned.

The Workings Behind Contingencies

You, the buyer, and the seller will likely both ask for a number of contingencies to be included in the written purchase contract. This is understandable considering that both parties want to cover their backs in case the deal falls through.  You can also use a standard contract used by your realtors since most of the contingencies are already covered in it.

Keep in mind, too, that the inclusion of the contingencies should be made regardless of the location of the real property.  You may have, however, unique contingencies for a Pace Florida real estate property as against a Navarre FL real estate transaction. This can be attributed to the unique market conditions in each place even when both are in the same state.

One of the most notable inclusions is the time period allowed between the contract signing and the deal closing, known as escrow in many states. During the escrow period, you and the seller should work toward the compliance of the agreed contingencies. These can include scheduling inspections, securing loans, and getting documents, to name a few.

What happens when one of you fail to deliver on an agreed contingency? You have two options – renegotiate or call off the transaction. You have to carefully consider the pros and cons of each option especially when there’s so much money at stake.

The Types of Contingencies

There can be as little or as many contingencies as you want on your real estate contract. You and the seller have to agree on these contingencies for the transaction to move forward further.  The common contingencies include:

·         Buyer’s inspection contingency. You want to be satisfied with the home inspection’s results before closing the deal.

·         Financing contingency. You have to prove to the seller your ability to actually get a loan for financing the property purchase. Before the Great Recession, a pre-qualification letter from a lender was sufficient for the seller to close the deal. But times have changed and a financing contingency is considered a must on the contract.

·         Insurance contingency. You want to ensure that, indeed, the house can be insured. You may just find that it cannot be insured because of various issues, such as the presence of toxic mold and the high risk of natural disasters.

You can also add unique contingencies of your own. You may, for example, add that the purchase of the home will only push through when you have sold your old home. Regardless of the contingencies included in your contract, you have to carefully consider the impact of each one on the deal.