Heard of ‘mattress money’? It’s cash saved without a paper trail, from selling a car or getting a gift. But in real estate, how you save matters.

The money could come from selling a car, a small inheritance, or an outright gift. One might assume that cash is cash, but when it comes to real estate transactions, it’s important to understand that the way you save your money is nearly as important as having it in the first place. Continue reading →

The Age of Sharing has seen exponential growth, from $15 billion in 2014 to an anticipated $335 billion by 2025, driven by home-sharing and maintenance platforms. If you’re eyeing a share of this economic pie through platforms like Airbnb, understanding key considerations is crucial.

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An older house with good bones could represent a fantastic investment opportunity.”

As you gear up for your house search and consider older constructions, it opens up a broader spectrum of choices. Nevertheless, older homes might conceal underlying issues. Here are some crucial factors to ponder (and get professionally inspected) when contemplating the purchase of an older home.

Foundation and Structural Integrity

Due to their age, older homes warrant a comprehensive inspection to assess their foundation and structural condition. Cracks or unevenness in the foundation can lead to problems like moisture damage, dry rot, corrosion, and even structural shifts. According to Safewise, “Foundation repairs can escalate to over $10,000, depending on the extent of structural issues – and homeowners’ insurance won’t cover these costs.” If you suspect any structural damage, it’s imperative to have the building inspected by a licensed structural engineer.

Electrical and Plumbing Considerations

Many older homes still retain their original plumbing and wiring, primarily because updating these systems can prove costly. However, maintaining the original knob-and-tube wiring or the original cast-iron pipes can pose significant safety risks. Outdated electrical systems can potentially lead to fires, while old pipes may result in leaks or diminished water pressure.

Hazardous Materials

The older a home is, the greater the likelihood of it containing hazardous materials, such as asbestos and lead. Lead is commonly present in paint applied before 1978 and plumbing installed before 1985. Asbestos can be found in gas fireplaces, roofing, and insulation installed before 1980.

Outdated Heating and Cooling Systems

Older homes were often designed for heating systems using oil, coal, or wood and were later retrofitted with newer HVAC systems. Therefore, it’s crucial to ascertain when and how these upgrades were carried out. Even a relatively modern heating system can be inefficient and unsafe if it hasn’t been adequately maintained.

While houses with cooling systems are likely to be somewhat newer, outdated cooling systems can come with their own set of issues. Common problems with older AC units include malfunctioning fans, reduced efficiency, refrigerant leaks, and electrical problems.

Termite and Pest Concerns

Depending on the location of the home, termites and other pests could pose a substantial problem. The National Pest Management Association asserts that termites alone cause roughly $5 billion in property damage annually. The longer a home has stood, the more susceptible it may be to infestations.

Not quite ready to purchase a home for yourself but keen on capitalizing on the current favorable market conditions? Perhaps you’re earning a substantial income that’s ripe for investment opportunities. Continue reading →

If you’ve resolved this year to get your credit on track, getting started can feel a bit daunting.

However, it can sometimes seem as if credit agencies want to keep you in the dark about how scores are calculated. But not to worry – with some diligence on your part and a little insight into the world of credit score-keeping, you can get back on track in 2020.

Credit scores follow an algorithm first developed by the data analytics company FICO years ago. For a while, credit scores weren’t the primary force behind a credit decision ; yet, over time the impact of a credit score became more and more important. In fact, most every loan program available today has a minimum credit score.

Now, there are five characteristics of your credit history that make up your three-digit score: your payment history, account balances, the length of your credit history, the types of credit used, and how often you’ve applied for new credit. Specifically, credit scores will improve much more quickly by paying attention to the two categories that have the greatest impact on a score: payment history and account balances.

Payment history accounts for 35 percent of the total score.

To elaborate, payment history accounts for 35 percent of the total score. In other words, when someone makes a payment more than 30 days past the due date, scores will fall. An occasional “late pay” won’t do much damage to your score ; however, continued payments made more than 30 days past due definitely will. Preventing late payments is key to recovering your score.

Account balances compare outstanding loan balances with credit lines and make up 30 percent of your score.

Similarly, account balances compare outstanding loan balances with credit lines and make up 30 percent of your score. For instance, if a credit card has a $10,000 credit line and there is a $3,300 balance, scores will improve, since the ideal balance-to-limit is about one-third of the credit line. Conversely, as the balance grows and approaches or exceeds the limit, scores will begin to fall.

In contrast, the remaining three have relatively little impact. For example, how long someone has used credit accounts for 15 percent of the score, but there’s nothing anyone can do to improve this area other than to wait. Moreover, types of credit and credit inquiries both make up 10 percent of the score. However, by concentrating on payment history and account balances, scores will improve significantly over the next few months.