Thursday, January 16, 2020 / by Brian Khatambakhsh
Real Estate News Affecting Your Home's Value
- Happy New Year!
- What is House Flipping?
- Free Community Appreciation Events
- Mortgage - Why Paying Down Your Mortgage Fast is Not Always the Best Idea
- Real Estate Market Stats
- 11 Costly Home Inspection Pitfalls
- Your Referrals Help Change Lives!
House flipping has been on the rise for some time and with a number of popular house flipping television shows being broadcasted daily across the country, it is easy to see why it is so appealing. However, there is a lot more involved with flipping a house than what you see on TV.
What is House Flipping & Is it A Good Investment?
House flipping is when real estate investors purchase homes with the intention to flip them and resell them for a profit. Most of the time, the ‘flipping’ involves renovating and repairing the home to bring it up to date. This then allows the investor to turn around and sell the home for a much larger price, pocketing the profits. If done right, house flipping can be a great investment and can turn a good profit.
5 Things to Remember when Flipping a House
1. Location is Everything!
2. Consider Your Target Buyer
3. Find a Reputable Contractor
4. Consider Your Timing
5. Determine the Right Asking Price
Interested in investing in Real Estate?
Call Brian at 647-848-2652 and he'll walk you through what you need to know and do!
There are multiple reasons as to why an individual should hang onto their mortgage and not pay it off any faster. The idea most Canadians want to pay off their mortgage early is to become debt free. First assess if you have any other debts with higher interest rate than your mortgage.
A mortgage is simply a different type of debt when compared to credit cards, car loans and unsecured lines of credit but the interest rate on the mortgage is typically much lower. Therefore, instead of making pre-payments on your mortgage, consider using your extra cash to tackle any of the following debts:
- Credit Card Debt: These debts should be a high priority to pay off as they often have the highest interest rate. Commonly ranges between 9.99% to 29.99% depending on the creditor or institution.
- Car Loan: Compared to credit cards, car loans have a significantly lower rate. However, all car loans have a financing rate, which in most cases are much higher than your mortgage rate.
- Student Loans: Once you complete your studies and start working, eventually student loans need to be paid back, find out what’s the interest rate you are being charged and see if clearing this debt first is the right option.
Once you have cleared all your Non-mortgage debts, consider if any investments are out there that can yield you better rate of return than the mortgage rate you’re trying to save. While being debt free gives us a peace of mind, however, mortgage debt is a good debt. Try to stay disciplined, focus on paying off your most expensive debt first and invest the rest wisely to increase your net worth.
If you need any help or advice with your mortgages or investments, call Greg Kalanjian today at 647 638 6358
Need Answers to your Mortgage/Financing Questions? Call me today 647-638-6358
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