Posts Tagged ‘investors’

Common Down Payment Errors Real Estate Investors Commit

May 13, 2008

If you are planning to invest in a real estate property, making a payment up front is one of the most important and most critical steps in the mortgage procedure. The amount that you pay as down payment is a key determining factor on the amount of monthly payments that you will make which makes the decision of what amount to pay up-front affect you for the remaining period for which you will be paying off the balance of the entire amount of the investment property.

In order to avoid the complications that may arise in the future because of committing these down payment errors, here are some guidelines that will help an investor avoid making these errors themselves.

Making A Very Small Down Payment

Mortgages with very low down payments offered by many lenders nowadays may be attractive to a lot of investors. However, even if these lenders require less than 20% of the property’s selling price, the loans also require the investor to pay a private mortgage insurance which is an extra fee apart from the monthly payment that you will be paying for the balance. The purpose of this private mortgage insurance is to protect the lender in case you default payment on the loan.

Low or no down payment loans also carry higher rates of interest which can only result to more costs in the long run. On the other hand, a higher down payment will earn you a better interest rate if you have a less than stellar credit standing.

Making A Very Large Down Payment

The notion that the greater amount you pay for your down payment, the better off you will be is not always applicable when dealing with real estate investing. Sometimes, real estate investors, especially first time buyers, use a big portion of their savings in order to pay the down payment at their advantage only to find out in the end that they lack enough money to cover closing expenses related to their new home.

Not Making A Down Payment

Not making any down payment can be a very risky decision. If you do not pay a down payment for the property that you are planning to buy, it will put you in a position of having no equity of the property which means you do not own any part of it. Once the value of the property falls, you will end up owing more to your lender than what the house is worth. This would also make it more difficult for you to refinance your mortgage in the near future.

Incorrect Assessment Of Your Debt Comfort Level

Nobody knows better than you how much debt you can hold. If you think paying more at the start will give you more benefits, then do not let anybody talk you out on doing so. Just remember that the worst thing you can do is to lock yourself into a mortgage that will only cost you more each month that the amount that you are comfortable to spend.

http://www.opendiary.com/jv17

Panama Real Estate Shows Potential and Bright Future

April 29, 2008

Panama has always been a great spot to invest, it’s because the growing trend nowadays is that investing overseas, it’s probably this year is becoming a rough year because of the nationwide housing crisis people rather investors tries to opt for searching the horizon and in this case its going to other countries in which is having a good year in their own respective market or some place that are a hot spot or just beginning to be a hot spot. Panama Real Estate has been a revelation so far. In recent reports the growing popularity of the area has been an underdog to other Latin American countries that are bagging tourists. Now that the tables have turn for the market in which Real Estate on countries such as Panama and any of the country in the Caribbean strip is making its way to the mainstream.

Panama has always been a great spot to invest, it’s because the growing trend nowadays is that investing overseas, it’s probably this year is becoming a rough year because of the nationwide housing crisis people rather investors tries to opt for searching the horizon and in this case its going to other countries in which is having a good year in their own respective market or some place that are a hot spot or just beginning to be a hot spot. Panama Real Estate has been a revelation so far. In recent reports the growing popularity of the area has been an underdog to other Latin American countries that are bagging tourists. Now that the tables have turn for the market in which Real Estate on countries such as Panama and any of the country in the Caribbean strip is making its way to the mainstream.

It is rather a surprising instance that the market is overviewed as a good place to invest mainly because the market has provided some potential progress, in March numbers the listings have grown scientifically and investors have shown very high interest. The condo market there has been in a good progress. There are reports that potential investors are keen on taking properties on the beach side, suggesting that they will make Panama sort of a little Miami in a way. I like what people are suggesting to do with Panama’s shorelines because they are doing a great job attracting investors. It is really exciting getting the market’s attention at hand. More and more people are taking notice and that is something to look forward into.

In time, Panama will most likely get significant improvement because of the development the officials are making. Suggesting that the resources that the country has is qualified for potential real estate property, the gain of the country’s real estate business numbers are good. It’s something to look forward to and have an eye on. Let it be known that the investment on the market is getting nice attention for potential homebuyers and investors, U.S. developers are also getting their eyes locked on the country and scouting for a nice location to build their projects with. Whether it is commercial, residential or condo real estate market, Panama’s future is bright and it’s obvious.

Not only that the market is really valued it is also processed in a very good situation. I, myself would like to get my hands wet on the market. It just shows so much promise. That is why you see big time companies and investors showing interest in the land. It attracts investors, naturally, it’s like a given. The thought is that the market given the chance to improve has a lot to offer, be it Real Estate, commercial or any type of business. Panama shows bright lights and the connection it makes to their own market is significant.

Jron Magcale
http://panamarealestatetrends.com