Category Archives: investment property

Quick and Affordable Ways to Boost Curb Appeal

Whether shopping online or in-person, a home’s exterior makes or breaks the first impression. So, ensuring properties have exceptional curb appeal can be the difference between a buyer pulling it off the market and it sitting idle on the market for months.

Despite popular belief, increasing curb appeal doesn’t have to be an expensive endeavor. In fact, minor changes can have significant impacts, vastly boosting a home’s chance of selling quickly, especially along the New Jersey shore.

The Key Factors of Great Curb Appeal

Whether we’re talking about homes for sale in Atlantic County or any other location, a few factors universally affect a property’s curb appeal. Typically, the key aspects are as follows:

  • Front door — Consider the front door the home’s face. For maximum curb appeal, doorways should welcome people inside while aligning with the exterior aesthetic.
  • Siding and roof — Color, condition, and material all play vital roles here. Worn or faded siding could tell the potential buyer that the home isn’t properly maintained. As for color, darker hues tend to create a cozier appearance, whereas lighter shades communicate formality or grandeur.
  • Windows — They’re the eyes of all homes. Thus, clean, well-maintained, nicely painted windows are the most attractive.
  • Landscaping — Trees and plants bring front yards to life and help homes blend into their surroundings. Expertly landscaped gardens boost curb appeal exponentially.
  • Lighting and fixtures — The finishing touches (i.e., mailboxes, light fixtures, etc.) seal the curb appeal deal. They should be clean, well-maintained, and fit aesthetically with the rest of the home.

Wallet-Friendly Pointers to Boost Curb Appeal in New Jersey

As mentioned, increasing curb appeal doesn’t need to be expensive, especially when following these five top tips:

Spruce Up the Porch

Porches are the eye-catching to potential buyers — they want to feel welcomed by the decor, paint colors, and seating.

Adding a few chairs, ottomans, a coffee table, and some accent pillows can give the front porch a stylish yet cozy upgrade, increasing the chances of selling.

Fresh Exterior Paint

Nothing beats a fresh paint job. Adverse conditions and the general passing of time wears exterior walls. But by applying new paint, sellers can reverse the clock and breathe new life into their homes.

Exterior colors should be aligned with the rest of the street but also enhance the architecture of the specific building.

homes for sale in Atlantic County

Add Plants

Greenery is a surefire way to increase curb appeal with ease. It doesn’t have to be expensive, either. Seeds are relatively cheap these days; it’s just a case of waiting for them to blossom.

Switch Out the Light Fixtures

If the light fixtures are old or unpleasing, change them. Try finding a stylish sconce or lantern that complements your color scheme. It’s also a good idea to ensure the bulbs emit warm light — buyers are looking for a place to call home and warm hues produce those cozy vibes.

Wash and Paint Windows

Sea air is harsh on paint and home exteriors. Washing and repainting the windows gives homes the finishing touches they need to look great from the curb. The best part? The task can usually be finished in a day.

Mailbox

This item probably isn’t the first thing to come to mind for enhancing curb appeal, but with the mailbox residing in many cases literally at the curb, it’s a high-visibility piece of décor that can enhance that first impression of the home. If you’ve got one of those boring, featureless plastic tube mailboxes that’s now fading, cracking, and shifting put it out with the recycling and replace it with something more regal.

If your current mailbox does complement your home in style and architecture, but just needs a little love, take the time to repaint or stain it and you’ll be so happy with the result you’ll ask yourself why you didn’t do this years ago!

homes for sale in Margate NJ

What to Know When Buying Multiple Properties

With summer temperatures rising, now’s the time to invest in real estate along the Jersey Shore. By purchasing multiple properties and leasing them out as short-term vacation homes, investors can make a fortune on seasonal beach goers. Yet, before you go out and buy a collection of homes or apartments, be sure to prepare your finances and research the market.

Buying multiple properties is a wise investment, especially across the New Jersey shoreline. With any investment, though, you should be careful to do your due diligence before purchasing. This means guaranteeing that your credit is acceptable, finding secured financing, and locating the most profitable areas to invest in. Whether you’re looking for homes for sale in Margate NJ or other areas, this article will help you prepare for your investment and guide you through the process.

Understand How Credit Can Affect Your Purchases

Your credit score is one of the most important things to consider when you’re making any large purchase, especially if you’re buying multiple properties. This becomes especially relevant if you’re purchasing your fifth-through-tenth property.

At the most basic level, a high credit score will grant you access to better interest rates on your mortgages, meaning you can save more money in the long run. If your score is low, you may still qualify for a loan, but it will come with a higher interest rate which will eat into your profits.

At a deeper level, though, you could be disqualified for financing if your score isn’t high enough. According to guidelines set by Fannie Mae, investors must have a score of at least 720 to qualify for financing on fifth-through-tenth properties, along with down payments as high as 30%. If you cannot meet these requirements, you’ll be disqualified before you even set foot in the door.

Find Secured Financing

When you’re buying multiple properties, you’ll likely need to take out a loan in order to finance the purchase. There are a few different types of loans you can choose from, but the most common for investment properties is a portfolio loan. This is a type of loan that allows you to use multiple properties as collateral, which can help you get a lower interest rate.

Another option is to get a home equity line of credit (HELOC). This is a loan that uses your home as collateral and can be a good option if you have a lot of equity in your property. The downside to a HELOC is that you may end up paying more in interest over time.

homes for sale in Margate NJ

Research the Market

When you’re buying multiple properties, it’s important to choose locations that will be in high demand. This means doing your research to find out which areas are growing, have a lot of amenities nearby, and are close to tourist attractions.

The Jersey Shore is a great place to invest in real estate because it’s a popular spot for tourists. Another benefit of the Jersey Shore is that there are many towns to choose from, so you can find the perfect location to fit your needs. Some things to consider when choosing a location include:

  • The local economy
  • The crime rates
  • The quality of schools
  • The cost of living

Once you’ve chosen a location, you can start looking for properties. Be sure to work with a real estate agent who knows the area well and can help you find the best deals.

Final Thoughts

Buying multiple properties is a great way to invest in real estate, but it’s important to be prepared before you make any purchases. Be sure to check your credit score and DTI, secure financing, and do your research to find the best locations. With a little preparation, you’ll quickly attract beachgoers and turn a profit on your investment.

5 Real Estate Tax Secrets for Investment Properties

Most people have never heard of these tax strategies that involve an investment home. These tips will help you maximize your tax savings, and will give insight as to how to manage having a second home.

Tip #1: Take advantage of ‘safe harbors’

Don’t let your second home sit vacantly while you’re not there, rent it out! This will provide an extra income, and you can deduct related expenses such as repairs, insurance, real estate taxes, and a mortgage interest. The IRS also has a “safe harbor” policy for rental property expenses for $2,500.

However, if you are personally using the property for more than 14 days per year, there will be different tax implications, so consult with an accountant to determine what the specifics would be.

Tip #2: Depreciate your rental property

The IRS views a rental property as a business expense, which means they expect it to depreciate over time. The benefit of this is that you can deduct some of the cost of the home for upward of 27.5 years.

Tip #3: Depreciate is actually a ‘phantom deduction’

The IRS defines depreciation losses for rental properties as an allowance given to owners for the wear and tear and normal use of the property. While the IRS compensates landlords and owners for the depreciation of their assets, homes actually appreciate in value, so the loss the IRS allows doesn’t happen. This saves money on taxes, while still making a profit.

Tip #4: The 1031 exchange

This tax rule lets people sell an investment property for a profit, while moving the proceeds directly to another investment property, while deferring the tax liability. By paying capital gains tax, this can increase the value of your holdings without affecting your capital. Also, if the money in holding remains untouched before closing, the original sale will have no tax due.

Tip #5: Leave more money to your heirs

If using the 1031, heirs are left with real estate that has a lower tax basis than its actual value, because the tax law states that when someone passes away, the gain inherent in their investment is gone. If you’re looking to get cash out of the property, just refinance it and take out a home equity line of credit. Also, there is no tax on debt so having a home equity line of credit is simple for getting cash flowing without having an extra tax expense.

 

 

 


 

Heidenry, Margaret. “Shh! 5 Real Estate Tax Secrets the Rich Don’t Want You to Know.” Realtor.com, 14 Mar. 2017. Web. 30 Mar. 2017.