When is the Right Time to Buy?

FOLLOW THESE 5 STEPS TO GET YOU CLOSER TO THE CLOSING TABLE FOR YOUR STARTER HOME.

Queens’s prices are through the roof! ...but so is the rent. In this fast paced market how do you know when is the right time to buy? Here are 5 necessary steps you will need to take to go from your rental to your starter home:

1. GET YOUR CREDIT READY!

Credit scores are one of the most important factors when getting a mortgage. With good credit comes a good interest rate! Lenders look for long-term on time payments before lending you the hundreds of thousands you will need to purchase your Queens home.

The more lines of credit you have the better. So if you have one credit card it might be time to up the credit game a little. For more info on credit building CLICK HERE. Remember when getting new credit cards it will effect your credit score by 5-15 points. Over time it will grow into a beautiful money tree helping you get the funding you need for your future home.

FIGURE OUT, WHICH MORTGAGE IS THE RIGHT MORTGAGE FOR YOU.

Even if you don’t have 20% down you can still get a mortgage for a little as 3% down. If your mortgage is lower then 20% you will have to get what is called mortgage insurance, which is roughly .85% of the mortgage and is not tax deductable in any standard.

You can also lower your mortgage insurance and your rate by taking a short-term loan. Like a 5 year ARM where the interest fluctuates every 5 years. This might not be the best option if you are planning to live in the home long-term.

Does it sound like I’m speaking another language?
LET A PROFESSIONAL MAKE IT SIMPLE TO UNDERSTAND

KNOW WHAT YOUR TAX DEDUCTIONS ARE!

When you buy a home your property tax and mortgage interest are tax deductable. So, when you file your taxes at the end of the year you'll owe less money to the IRS. Speak to a financial professional for more details.  

COMPARE RENTING VS. BUYING.

Most people make the mistake of looking at the monthly and comparing it that way. To truly compare you have to compare it after your tax deductions and the whole nine yards. That will give you the true numbers you need for a proper and accurate comparison.

KNOW THE DIFFERENCE BETWEEN A CO-OP, CONDO, AND RESIDENTAL PROPERTY.

It is wise to speak to a local real estate professional to come up with a game plan. A good realtor will look at your budget and connect you to other professionals to help you come up with a budget and over all game plan.

THE BASICS:

Co-ops: Usually require 20% down payment and have many requirements regarding DTI. They have policies regarding subletting and pets. You usually must pass a board interview and an application process (NOT REAL PROPERTY). 

Condos: You can get an array of loans for this property but buildings don’t usually accept FHA loans. Some condos do require a board process (rare). A Condo does have common charges and taxes similar to a co-op but does not have as many rules and policies. (REAL PROPERTY)

So renter, there you have it! Those are the five steps you need to start moving toward ownership. It would be a wise choice to reach out to a real estate professional to help you brainstorm and come up with a game plan.  Also, most buyer representation is FREE! So, you have nothing to lose and everything to gain!

GET LINKED TO A PROFESSIONAL REALTOR

"Alex is a great realtor! He not only helped me find a great 2 bedroom in Forest Hills, but he also helped me sell my studio quickly. He's very professional, extremely responsive, and always available to answer questions. I would recommend him to anyone looking to buy OR sell." - ZILLOW USER

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6 Tips That Will Improve Your Home's Value.

TINY UPGRADES...BIG MONEY

NO MATTER THE SIZE OF YOUR BANK ACCOUNT, THERE ARE STILL SMALL THINGS YOU CAN DO TO IMPROVE YOUR RESALE VALUE! 

It does not matter if you are getting your home ready to sell or just want a couple of tips for improving the over all look of your pad. It is important to start where your money counts most. Many home owners and DIY-ers are making huge bucks from prospective buyers by focusing on these 6 areas of their homes. So let us help you get the best return on your investment possible! 

YOUR LAWN IS THE FACE OF YOUR INVESTMENT

This might be the easiest fix one can do at an affordable price. If it is fall or summer your curb appeal matters! When someone sees the FOR SALE sign outside your house, before they even see the bricks and Morter, they see the grass and bushes. If you have an abandoned refrigerator or an old tire from your first car in your front yard it might be time to get rid of that. Nothing screams welcome and attracts more buyers then a nicely maintained lawn. Make your realtors job easier and help him or her get more people into the house. 

YOUR BATHROOM, MIGHT COST YOU YOUR BUTT

(NO PUN INTENDED)

According to any good google search the average person spends nearly a year and a half of their life in the bathroom. Yes! So updating your bathroom and keeping it freshly painted or tiled will definitely raise the desirability and value of your home. Bathroom jobs can be pricey so it might be wise to consult with a real estate professional first. 

LIGHTS, CAMERA, ACTION

Alexa, turn on the kitchen lights... The age of using fingers to turn on the light in a room are over. Switches are so yesterday but if you decide to update the lighting of your place make sure its done right. Remember the old realtor adage "The brighter the room the larger it looks." Go to home depot and get some LED lights and watch your potential buyers shine! 

THE KITCHEN IS THE HEART OF THE HOME

"Home is Where the Heart is."

FALSE! The kitchen is where the heart is. When it comes to a family home, the kitchen is where people congregate the most! Since it's a human need to eat, most traffic and discussions within the home happen around or near the kitchen. So if you want to raise your home's value this is where you might need to start. 

A remodeled kitchen can make a huge difference in the sale of your home. Lacking the funds to redo your whole kitchen? Try replacing old appliances. The fresh chrome look always makes potential buyers happy!

HOLES IN THE WALL WILL CAUSE HOLES IN YOUR POCKET

This might seem obvious, but that hole you made 5 months ago should be patched and re-painted. For some first time home buyers a $15 job might look like a $1000 job. So, to avoid low offers patch the holes up. 

FRESH PAINT MIGHT MAKE YOU A SMALL FORTUNE

One of the best things a home owner can do to raise the value of their home is a fresh paint job. It's important to use natural and warm colors and avoid bright colors. Sorry, that includes baby blue and hot pinks. A fresh paint job is the equivalent to a new car smell. All potential buyers love a newly painted home. 

TIP: MAKE SURE YOU CONSULT AND HIRE PROFESSIONALS! NOTHING IS WORSE THAN A BAD PAINT JOB OR THE WRONG COLOR. 

I Wasn't Looking to Sell Until My Broker Got Me A 1 Million Dollar Offer

Queens, NY is a one of a kind place filled with culture and adventure. Most Queens home owners have lived here for so long and they're unaware that a gold mine sits right under their feet. Some people have dreams to move to Florida and never look at their home as the vehicle that could get them there in first place. 

True Story:

To protect this millionair's identity we will call this man Eric. Eric started off renting in Elmhurst Queens. Upon his mother passing away he inherited a 1 bedroom co-op worth $200k in 2009. He decided to sell with his realtor and wanted to move somewhere that had potential. His Realtor recommended Sunnyside because Long Island City was on its luxurious rise to fame. 

He moved in 2009 and lived in the property till 2015. He wasn't thinking about selling until his realtor told him that he might want to test the market because he thinks the market is shifting and he could walk away with some serious bucks! The realtor tested the market and the 2-bedroom he bought for $300k sold for $429k! At that price, he could not turn it down. 

"Invested...with a huge house and 8 investment properties."

He then bought a Woodside condo which was a rental conversion building and because he was one of the first to buy he was able to secure one of the 2-bedroom 2-bath units at $495k. He promised his realtor that this would be the last move until in 2017 and his realtor told him to test the market. He ended up selling that unit for $836k.   

Fast forward Eric took his money and moved out of state. He took his profits and invested in Florida with a huge house and 8 investment properties. 

LESSONS FROM ERICS STORY:

TEST THE MARKET WITH YOUR PROFESSIONAL

It is always important to run a market analysis on your property every year. If you like what you see place it on the market you have nothing to lose and everything to gain. You never know! 

TIP: Make sure your realtor knows exactly what he's doing and you trust their judgment and knowledge of the market. 

KEEP AN EYE ON THE HOMES SELLING ON YOUR BLOCK

If you see a bunch of homes on your block go on the market it can mean one of 2 things. The market is dropping! :: The sky is falling :: OR values are going through the roof! It's important to talk to a professional to come up with a game plan and figure out whats going on. 

BEFORE YOU MAKE MAJOR REPAIRS IT MIGHT BE WISE TO SPEAK TO YOUR REALTOR

I want to redo my kitchen before I sell because it will get me 50k more for my property. 

TIPS: DONT MAKE ANY RENOVATIONS WITHOUT SPEAKING TO YOUR SALES PROFESSIONAL. 

Trends change and you could lose a ton of money by making the wrong renovation decision. It would be a shame if you could have still got market value by just leaving your home 'As Is.'

We can all learn the power of real estate investing from Eric. Some may consider him lucky based on the factors presented to him. The funny part about the story was Eric never considered himself an investor until he had rental properties. IF YOU ARE A HOME OWNER YOU ARE AN INVESTOR and you might be making a killing without even knowing it!