8 Costs That New Investors In Real Estate Do Not Consider

Investing%20moneyDoug and Tammie share a list of 8 things investors must consider when investing in real estate.

Unexpected Repairs

A home inspection is a vital component in assessing whether or not a property is worth pursuing. The inspection report can reveal many inherent problems related to items such as roofing, electrical wiring, plumbing connections and HVAC, which is short for heating, ventilation and air conditioning. However, the unforeseen costs lie in the pieces not covered in the inspection report. For instance, any damage to a main sewer line that travels from a property to the street, or septic tank problems will not be detected on the report. Even leaks or mold inside the walls of the property can easily and expectedly be missed. Once a property is acquired and if significant problems arise regarding plumbing or other unforeseen elements, it can cost thousands of dollars to have them repaired.  Continue reading 8 Costs That New Investors In Real Estate Do Not Consider

Are You Living House Poor?

empty-wallet-SCOne common problem that people run into is that they become house poor.  What does this mean?  You are house poor if you have no extra money to pay for emergencies, cover your expenses and save for the future, because your house payment is too large. Your house payment should be about twenty-five percent of your take home pay. Some people think it is okay to go up to about thirty percent if you have no other outstanding debt, and do not plan on going into debt. You may end up house poor if your circumstances change and you begin to struggle to make your payments. For instance if one of you decides to Continue reading Are You Living House Poor?

Should You Have a Mortgage During Retirement? Or Should I Rent?

th6UIBOOAJAs a natural transition in life is to retire one may ask the question:  Should I have a mortgage during retirement?

Is it better to own your home free and clear?  Or are you better off using your nest egg for another purpose, such as having that financial cushion for the unforseen.

The answer to that question can be one of the more important financial decisions when headed into retirement whether to pay off a home mortgage or not.

Having a mortgage in retirement can be tough because retirees will need to spend some of their savings on mortgage payments. If you still have a few years left before retirement, Here are some ways to become mortgage-free:

Continue reading Should You Have a Mortgage During Retirement? Or Should I Rent?