Real Estate-Benefits

Ask yourself this question, why should you buy or invest in real estate in the first place?

It’s because it’s the IDEAL investment!

Let’s now take a moment to discuss further why people should invest in real estate. The easiest answer is a well-known acronym that defines the fundamental benefits why people should invest in real estate properties in the first place. That acronym is IDEAL.

It stands for I – Income, D – Depreciation, E – Expenses, A – Appreciation, and L – Leverage.


Income means positive cash flow. Real estate properties can generate revenue for its owners in the form of rental payments. Since inventory is low and demand is high, buying a home is not as easy as you think it is. For some people, they just can’t afford to buy their own homes just yet. As a result, they rent. Rates vary depending on location and a lot of other factors. One thing is sure though; people will always need a place to stay.


The moment you drive a brand new car off the dealership lot, the car’s value automatically decreases by around 20%. In the case of real estate, depreciation comes in the form of tax benefits. For example, as a property owner, you’re bound to spend money on remodeling or renovation projects. You can charge these expenses to your tax bill. Make sure to consult your accountant so that everything you accuse of your annual tax bill is valid.


When you own a property, you must take proper care of it, so it does not become a liability. Expect to spend money on repairs for damaged windows or fixing a leaking roof. You also have to pay your property taxes. It’s like the rent you pay to the government for their services. Maintenance and ownership costs become part of your expenses once you own a real estate property


Your calabasas luxury homes for sale value will rise and fall as the market conditions change over time. It has been observed though, that the growth in value of real estate properties can be likened to the return of a stock market portfolio over a period of 20 years. As a general rule of thumb, it is always best to measure the appreciation of real estate properties for the longer term.


The lesser amount you owe on your mortgage, the more significant your equity. When you have fully paid your mortgage, you have 100% equity in your property. If your property is worth a million dollars, your net worth must be close after deducting any of your liabilities. You can also use your equity as leverage when you apply for a loan. Use this loan to fund your business venture to generate more wealth for you.

Information Regarding Real Estate

Finding a good realtor is tough. There are billions of real estate agents listed online making the decision difficult. So how do you know who is reputable and who isn’t? What makes a good realtor? Before you dive into the process of finding a successful realtor follow these five easy tips, then start your search. With these tips as a guide, then it shall be a cinch to find the realtor suitable for you.

Find a realtor that knows the area. There are many realtors who have no idea about the area they are selling. They are not familiar with the neighborhood, territory, the pros and cons making it difficult for the realtor to provide a true insight regarding a certain region. Many realtors did not grow up in the area they are showing, and relay generic information you are able to discover yourself online. Therefore, find a realtor that grew up and/or lives in the same area. A realtor active in the community you desire to live is able to supply ample knowledge regarding traffic, driving routes, if the area is suitable for kids, schooling system, parking, shopping, etc…

Verify the realtor’s reputation. No matter if you are searching for commercial or residential real estate, you should verify the realtor is in good standing with the National Association of Realtors (NAR). Also, check the local chapter of the NAR ensuring the realtor is legitimate, doesn’t have any negative marks against him/her, and is a stand-up real estate agent. You do not wish to begin your home search without this essential step done first. In addition, ask for references. Ask to speak with past clients. If the realtor is successful, then it should not be a problem to ask past buyers/sellers regarding a specific agent.

Choose a realtor with internet, mobile and interactive communication capabilities. Realtors today utilize the internet, cell phones, emails, and other various accessible devices. You do not wish to be limited during your search. Searching for a home takes time and money. Thus, choose a realtor that uses all methods of communication. For if you are out of town and do not wish to put a halt to the house hunting, then a realtor capable of sending you interactive video, photos, listings, etc…directly to your email and/or cell phone is key to the progression of the search.

Find a realtor that is a MLS user. MLS stands for Multiple Listing Service (MLS). It is a tool real estate professionals use to find residential and commercial locations for clients. MLS is able to breakdown searches by school districts, cities, zip codes, streets and more. You are able to make it as detailed or as a broad of a search as you like and MLS helps you achieve this goal.

Vital Factors For Real Estate

Congratulations on deciding to buy a home! Because buying your first home can be complicated, we have written this article to guide you through the steps to home ownership. As well, we have included links to the major banks. Since every bank is slightly different, it is good to check them out and decide who you will want to handle your mortgage. We have supplied you with a Canadian Mortgage Calculator so you have an idea of what your payments will be. Current interest rates are listed on the banks’ websites to help you make the most accurate calculations.

Banker or Mortgage Broker. What’s the Difference? Both of these agents are doing the same thing. The only difference is that while a banker only represents the bank that he works for, a mortgage broker approaches all the banks to find you the best mortgage for your particular needs. There is no cost to you for using their services, since they are paid by the banks that they deal with. If you have dealt with the same bank for many years and feel a certain amount of loyalty, go ahead and approach them first. Most banks have their own “broker”, but these are not brokers in the true sense. Just remember that an actual mortgage broker doesn’t work for any one particular bank.

Pre-approval. What’s that? When you begin your search for a house, you will need to know how much the bank is willing to lend you, based on your current income and expenses. The bank will want you to come and see them (and some will even come and see you!) with your financial information, and will put together this information for you. You are not committing yourself to anything at this point, and if you decide that you would like to find a mortgage elsewhere, there is nothing to stop you from doing so. This is just a guideline so that you will know in which price range you should shop for a house.

Choosing a Realtor

Many people, when buying their first home, choose as their realtor the agent who has the listing contract for the first house they are interested in. Be aware that when the realtor acts as both the seller’s agent and the buyer’s agent, the realtor will give precedence to the best interests of the seller. Since the realtor is paid a percentage of the selling price, they will probably not negotiate as hard for you as they will for the seller. One strategy that works well for most people is to try out several realtors, and when you find the one who you would like to have on your “team”, ask them to help you with your search for your home. They should be happy to send you information and listings on houses that suit your criteria. You might also be interested in reading our article on How To Choose A Realtor.