Tuesday, 22 January 2019

Effective Ways to Add Value to your Home

Whether you have just purchased your first home, are looking to sell, or have purchased property as an investment from the likes of RW Invest, there are so many ways in which you can breathe a new lease of life into your property. Consider adding some extra space, or modernising existing features there are so many avenues that can be explored to add some value when it’s time to sell.

Before you set your sights on adapting your home it would be worth your while consulting your neighbours to see if they have done anything similar. Looking at Rightmove to find out the ceiling price of your road will also get you well equipped and checking with your local estate agents to check if your home improvement vision will even add much value to your property will serve you well.

Ultimately, you need to be sure that the cost doesn’t outweigh the profit, otherwise it is a completely pointless task. When renovating and enhancing your existing build you should always run it past your local building control office to see whether you require building regulations. This is so important to abide by, particularly when it comes to selling.

Build Upwards  
In order to add significant value to your property it may be good to consider converting your loft as it is a safe investment policy that can be performed relatively easily. Often, this is the easiest way to add an extra bedroom to your home and can really help propel your house into the next price bracket. Founder and managing director of Hatched, Adam Day, stated that a bedroom normally adds somewhere between 10% and 15% to the value of a property.

Build outwards
Choosing to add an extension, conservatory, or an orangery is one of the easiest ways to increase the value of your home, as they allow you to increase the floor space and add an extra room/rooms. Extending the back of your home can help to make your kitchen more open plan or allow for a kitchen/diner area. Whilst building on the back of your home you could consider building down the side too, as this will really maximise the space.
Converting your garage is another great point of call that can really make your home a great investment. Gone are the days when people parked their cars in a garage, as most of the time a driveway will suffice. That’s why converting your garage into a useable room can really boost the value.

Fix any existing problems
Carrying out cosmetic solutions can hide any problems from potential buyers but are very unlikely to fool a valuer and therefore the value of the property. It may be worth forking out some cash to tackle the problem head on and work to get it resolved rather than take the chance and lose money in the long run. Prioritise leaky roofs and any damp walls as these will only go on to cause you further issues. Structural cracks may start to form which is enough to put off any prospective buyer. Although these works can be expensive during a renovation project, they are absolutely essential when it comes to adding value. Any other small and superficial defects will not dramatically affect the value of the property, but they may prevent your home from selling at its absolute optimum. 

*This is a collaborative post 

Saturday, 19 January 2019

Upping Sticks and buying our first home

Late last year Stuart and I sat down and had a chat about our plans for the future. One of our main goals is to own our own house instead of renting. We currently live in Bedfordshire and have found the constant rising house prices meant that living here is just far to expensive. We decided that even though its a hard decision to move away a bit up north.  We are now in the process of purchasing our first home in Lincolnshire. 

At the moment we are currently waiting to exchange contracts and to get a completion date which we ideally want by the end of the month. We need to be out of the flat by mid February anyway so it's all systems go with decluttering and packing so you can imagine its a stressful time for us at the moment. 

With that in mind its likely that my blog is going to be on the quiet side as we are definitely going to be busy over the next month or so. At the moment I'm pretty anxious about it all but our solicitor has told us that the contract will be sent out next week. Honestly I didn't realise how sky high my nerves could be! 

I'm definitely feeling an overwhelming mixture of feelings from excitement about owning our home and exploring a new area to feeling anxious about moving away and not having family and friends as close.

We are also hoping to head up there at some point before we move to measure up and take some photos.  I'm hoping to share with you some home related posts especially as we want to decorate and there are some rooms we want to get done more sooner than others such as Blake's bedroom. We also need to sort out a new window in the attic room  and also want to get a new front door sorted.

I'll definitely be back with a house update soon.


Friday, 11 January 2019

Getting to Know the Finer Points of Reverse Mortgages

Reverse mortgages are home loans specifically available to you when you are 62 years of age or older. Although you have probably seen advertisements telling you how beneficial they are to retirees, you may not understand the intricacies of how they work. You may also be unsure of exactly what benefits you can get from them. That is why it is important to explore the finer points of reverse mortgages and what they have to offer.

How to Qualify for a Reverse Mortgage

Qualifying for a reverse mortgage is fairly easy, as long as you meet the age requirement and own a home with a high enough amount of equity to borrow against. Your reverse mortgage lender may also require you to undergo a credit check and make sure you have enough financial stability to perform maintenance on your home and pay the taxes and other expenses you must pay as a homeowner. For the most part, the only disqualified homes are homes that are not your primary residence, are not worth enough or are large apartment complexes, but there may be some exceptions.

Types of Reverse Mortgages to Pick From
There are two types of reverse mortgages. For example, you can get such a loan from a private reverse mortgage lender. You can also get one from a government source. Government agencies market reverse mortgages as “home equity conversion mortgages,” or “HECMs.” That is because the loans allow you to spend part of your home  equity to make your retirement financially easier.

Both types of mortgages are established in similar ways. For example, a reverse mortgage calculator is used for either type to figure out how much can be borrowed. It is difficult to calculate that amount because of government regulations and the influences of market values, as well as other factors. In addition to both taking advantage of reverse mortgage calculators, both loans are long-term mortgages with no immediate payback requirements on your part. However, they do differ in the fact HECMs are more closely government monitored and insured. Nevertheless, even private reverse mortgages are subject to some government regulations.

The Terms of Reverse Mortgage Agreements

The exact terms of reverse mortgage agreements may vary, but in general your agreement will allow you to receive an amount of money equal to a percentage of your home equity. You will then be given an unlimited amount of time to pay the money back, as long as you remain in the home and continue maintaining it properly by paying taxes and other expenses. Over the duration of the loan, which may be many years, interest will accumulate. However, in the short-term you can spend the extra retirement funds without repayment worries.

Another variation in loan terms is how you choose to borrow the money. There is a lot of flexibility in how you can be paid. If you have an existing mortgage, funds from the reverse loan must be used to pay the balance right away. Fees and closing costs of the reverse mortgage will also be taken out of the amount you can borrow ahead of time. After those expenses are paid, you can receive the remainder in installments or as one payment. You can also opt for a line of credit, which will allow you to tap into your home equity as needed by extracting varying amounts. The choice you make will depend on your current retirement living expenses.