How to Calculate Property Purchase Financing for First Time Homeowners

If you are new to buying property, there are several things you need to take note of and several steps you will need to take before you begin your journey.

The first thing you want to do, is check and compare the market prices of homes and other pieces of real estate, that are similar to the property you are looking to invest in. Certain areas on the web can give you a general idea of the market value of the real estate you plan on investing in. This way you will not get burned by spending too much on your new property. Be sure to invest in property you can afford. Use a mortgage calculator, or something similar, that way you do not invest money in a property you will never be able to pay off.

Look into how much you will be paying in closing costs. These upfront costs are one thing that should not be overlooked, and include origination fees that are charged by your lender, taxes, settlement fees, title and other prepaid items such as insurance. Look into what the closing costs for your state are by checking the various cost surveys. How Did Property Developers Become the Best? Find Out.

Looking at your budget, you can help determine how a property can fit into it. You do not want to spend more than 25% to 30% of your income on property costs. A little over is okay, but too much over can be a problem.

This is related to the point above, but calculate what your monthly costs for your property is going to be. Add up everything, it is okay to exaggerate a little because it is better to have money left over than not enough for your property costs. You can use an affordability calculator to help determine what the cost of the property will be if you need help. This includes items such as insurance and property taxes. Keep an eye on the taxes, seeing in certain areas they will double your mortgage payment if you are buying a home, this is especially true if you live in Texas.

You can also call a local insurance agent in the area want to buy your property. They will give you an idea of how much you will be paying. Property tax information can be found in different publishings around the country if you are curious in regards to taxes.

Using the tips above, you should be set to buy the property you want without breaking the bank and avoiding any unnecessary frustrations.

Searching for Penang Property? Here Are Some Helpful Advice for Foreign Investors

Investors throughout the world are looking at investing in Malaysia properties for a multitude of reasons.

You will find that doing business in Malaysia is easier compared to other states with Malaysia coming in 6th place by the World Bank in Ease of Doing Business Report 2014.

You will also be avoiding any natural disasters which makes it a great target for investors and for people in the region looking to settle down in a coastal area.

Penang it’s self is located on the Northwest coast and you should know it’s broken up into two different areas the Penang Island and the Seberang Perai which is on the mainland. Penang is actually the second smallest state of Malaysia after Perlis. Penang is known for its tropical climate with temperatures ranging from 23 degree to 32 degrees Celsius.

Lacking in size has not slowed Penangs development. The beach fronts and islands have become a spot for tourism and housing growth. One must take a drive on the Penang Bridge which connects the main land and Penang Island which until recently was the only driving option to the island. With the boom in Penang at this time The Second Penang Bridge was just opened on March 1st, 2014 connecting the southern part of the island.

You will also find now is the time to do seriously consider a search for Penang properties. Just in 2014 the Malaysian government raised the requirements for purchasing a Malaysia property from MYR500,000 per unit to MYR1 million per unit. You will find that the MM2H migration program has had no changes but is something to look out for in the near future.

Penang has a few popular areas to live in but a couple to check out are Penang Hill, Minden Heights along with Jelutong. You will find in these area’s plenty of larger condos available with many new buildings been put up at this time. The high rise condominiums are become popular for their spectacular sea views. During a search you will also find many terraced homes and partial detached houses for those looking for more private quarters.

With European and Asian investors flocking to Malaysia don’t wait to find out if Penang and Malaysia is for you.

The Standard Process of Buying Foreclosed Homes

Real estate has taken a beating recently. One of the few silver linings in this downturn in real estate values is that there are now a lot of foreclosures available on the market. This offers a real chance to get a good deal on property. However, you should know a few guidelines before you set out to buy a foreclosure.

Foreclosures 101

Foreclosures are properties that have been repossessed by the bank due to default or turned over to the bank willingly. Once the property deed is turned back over to the bank, it will then put the property up for sale again in an effort to recoup its investment.


The first thing you should do if you want to buy a foreclosed property is to get pre-approved. You need to get a copy of your credit report and review it for errors. Clean up any errors in your report. Then, take all of your paperwork, including your tax returns for income verification and employment history, to your lender so you can start the pre-approval process. Once you are pre-approved, you are in a much better position to negotiate and be taken seriously.

Get an Agent

The next step is to get an agent. However, you don’t just want any real estate agent. You want one that works specifically with foreclosures. Of course, you have the option to go it alone, and this might not be a bad idea if you were in the market for a traditional property. However, since you are looking at foreclosures, it’s best to enlist the help of an agent. One way to find an agent who deals with foreclosures is to search the real estate listings and sort by foreclosures. They will usually have agent information included. These agents work closely with the banks, and often know of properties that aren’t even listed yet. That is your inside track.

Know the Market

If you already have a home, make sure you study comparable home sales in your area. You’ll want to know the price range and length of time it should take to sell. This will prevent you from pricing too high or too low.

“As Is” Really Means “As Is”

Most of the foreclosure listings will include some language stating the property is sold “as is”. This means exactly what it sounds like. A lot of these homes have been sitting vacant for a while. Some also need repairs. All of this is part of the bargain when buying a foreclosed home. This doesn’t mean there aren’t good deals to be found. Just know what you are getting into. The listing is generally going to be thousands less than it would’ve been if not in foreclosure. Use some of that money for clean-up and minor repairs and within a couple months, you will have a new launch property (search here!) ready to move into or put back on the market for a profit.