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Real Estate

Why is it So Complicated to Buy a House?




Purchasing a house is one of your life’s biggest commitments that is bound to be stressful. To add to your stress, the process of buying a house may seem unnecessarily complicated.

Over time, the brokers working in the housing market have convinced homebuyers and sellers that their expertise is required to ensure that all the parties get a fair share. In addition to this, the government has added multiple regulations that are meant to actually protect consumers but end up looking complicated and difficult to interpret. This has resulted in an incredibly complicated and costly homebuying process.

Understanding the Complexity of Buying A House

The Congress passed the RESPA law in 1974 that put an end to routine price gouging and kickbacks that took place between agents and service providers that were essential to buy a house. But this made the process of homebuying complicated for the consumers.

Today, there is an escrow service that is required to hold the deposit amount until the contract is settled. In addition to this, there is a title insurer whose job is to evaluate if the property under consideration has any liens or boundary issues. Next, the mortgage provider is required to lend money that most consumers require to buy a home. Apart from this, there is an insurance provider who covers the insurance required to obtain the mortgage and secure the property in case a catastrophe was to occur. Lastly, there is a home warranty provider who offers a limited warranty if any big items such as the roof or water heater were to fail. Owing to the RESPA regulations, each of these entities has a separate fee that cannot be bundled together. To top this off, there are real estate agents who are still overcharging you separately for their services.

The Cost of Commission

Sellers traditionally used to pay about 6% of the value of the transaction to their own broker and that of the buyer for their services. However, nowadays buyers find properties through Zillow, Google or and send them to their agents. In many cases, the only job that a buyer’s agent does is to open the house for viewing. In spite of such limited work, the buyer’s agent still collects half the commission that is paid to the sellers. When you look at this amount in terms of numbers, it is a huge sum. As a buyer, you may be thinking that the seller is paying this amount however this amount is usually built into the listing price of the house.

How Can A Good Mortgage Professional Help You?

Based on the complications surrounding buying a house and the cost of commission, it is best to hire a mortgage professional who can make the process less costly and less complicated for you. A good mortgage expert will remove the need to overinflate list price and help you secure insurance and mortgage at competitive rates. Moreover, a seasoned expert who handles a lot of business can take care of title, escrow, and warranty so that you are easily able to fulfill your home buying dreams. Rex Homes, for example, has some information on why this process is complicated and what they can do to help you on their blog here:

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Real Estate

Ways to invests in real estate profitably



real estate profitably

Many people around the world look forward to having a investment plan, especially those who are in their teenage and in their 20s and want to have invest in a new launch condo. They do imagine the outcomes (probably the pros, not cons). They think of the things that it will be manageable once they have their own business, they plan everything in their minds but they are not much aware of what could happen in the first place if, they try to do it in an imagining way.

Hence, there are some prior strategies for those who want to have a business plan in property investment but, two are those that have been in the investment game since the very first day, these are:

  1. Buy a property and rent it out
  2. Buy a property and sell it on for a profit

But, if it was that much easy; people around the world would be millionaires or billionaires by now. Every business demands investment and investment done at a proper time gives you profit. Therefore, you should think properly before investing in what strategy would best fit for your business in terms of gaining profit. These strategies are as follows:

  • Single lets to Professionals
  • Student let
  • Commercial Property
  • Rent-to-Rent
  • Lease options

Professional Single Lets is a buy-to-let investment strategy, in this property strategy, you make sure that you are renting out the property to a group of people known as “organization” or to some “individual”. This strategy gives you more simplicity rather than adapting to any other strategy.

  1. Easy to get started.
  2. You can get mortgages in easiest ways.
  3. Little management time.
  4. Predictable returns.

The only disadvantage of this startup strategy is that it does not give you back high returns as compared to other strategies when it comes to new launch strategy.

Student-lets are the ones that concentrate more on the student market, as the influence is getting higher by the day and students are more into new launch strategies, these strategies allow them to discover new ideas prior to their knowledge and facts.

Student-lets somehow refer to the hostel typology. In this sense, students get in or out easily, they try to have on join contract and have a room shared with other students as well. Hence, it also has its advantages as well as a major disadvantage that makes it unbearable on the other side when thinking of negativity.

  1. Increased Revenue, Less Management.
  2. Predictive Student Cycle.

The disadvantage is the accommodation issues, hence when the student cycles exceed the limited amount, it becomes a con for new launch strategy.


When it comes to new launch strategy, people around the world want to have a business from which they can have profits and profits only and has to have fewer management terms. In this sense, they look forward to having Property Investment mechanism but, little they know that it becomes harder when it grows or any other business grows, it requires more management skills. Hence, in a persuasive way, the more the will power, skill, and management; the more profit you get.

In this sense, these strategies allow you to have an insight of what you want when it comes to new launch strategy.

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Real Estate

5 Advantages of Depreciation for Properties



Depreciation is a term frequently used in economics and finance that describes the loss of value over time. Depreciation can affect any asset, such as cars, real estate, stocks and even currency. Depreciation can arise from a variety of factors such as wear and tear, obsolescence and economic factors like demand for the asset. Depreciation can be both advantageous and disadvantageous.

It allows businesses to account for the slow degradation of the equipment as it is used throughout its life. A value is assigned to the asset and gradually expensed throughout the years it is used. This is designed to accurately reflect the usefulness of the object to the business, and therefore its value.

Below are the advantages of depreciation on properties:

It reduces start-up deductions

This option can reduce start-up costs by increasing deductions that are taken during your business’s first years of operation. This will allow you to reduce your overall business tax debt, which means that you will have more money that you can use for marketing, purchasing equipment and growing your company. This also means that you will have increased chances to succeed in the market.

It allows you to take a higher upfront deduction

Another huge advantage of accelerated depreciation is that it allows you to immediately take a higher deduction, and so, you can reduce your current tax bills. This is really helpful especially when you have a new business that might be having problems with short-term cash flow. Also, by maximizing deductions today, you will be able to avoid delayed deductions in the future when it happens that your business no longer exists.

It works as a tax deferral

As this depreciation system creates increased deductions, your business will be able to defer a portion of its tax debt. If your company is trying to reduce taxes that it currently owes, deferring tax debts with the use of this approach will provide you additional time before the time when you must pay your taxes in full amount.

It helps in replacing of assets

Assets used in the business need to be replaced after the expiry of their useful life. Depreciation can be taken as a source of fund for replacing worn out asset by a new asset. Thus, depreciation charges help in accumulating funds for the replacement of an asset.

It saves some taxes

The profit and loss account will show more profits if depreciation is not charged on asset. So, the business needs to pay more income tax to the government. Depreciation charges on assets save the amount of tax equivalent to tax rate. Since it is shown as expense in the profit and loss account, it reduces the amount of the profit.

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Real Estate

UAE is going to be the hub of tremendous development in the near future



tremendous development

UAE is considered the most diversified economy in the GCC (Gulf Cooperation Council) but the country still depends upon oil revenues for its development. It is due to this reason that the UAE government is actively trying to promote other sources of development and projects which can shift the dependence from oil-based revenues to other sectors like tourism.

The cities of Dubai, Abu Dhabi and Sharjah are the prime locations of the country which are offering investors and businesses from around the world an opportunity to expand their business in this region. The fact that UAE has an open economy and has really good trade relations with a lot of countries helps it to have a better opportunity for growth.

The UAE government is trying to focus on different factors such as infrastructure, tourism, power generation, etc. The result is the huge number of projects in UAE which are either already undergoing or are slated to undergo in near future. With the right to host World Expo 2020, UAE is really looking forward to increased economic growth and development in future.

The interesting and beneficial part of these projects is the procurement system of the Ministry of Finance. The UAE government is known to follow a fair and transparent system for tendering and awarding contracts (eProcurement System). This system allows the Ministry to invite tenders for various projects and also announce the contracts. It consists of a tenders and auction system which ensures the success of the purchases and also helps in reducing administrative as well as financial costs (due to the participation of suppliers and dealers in tenders, auctions, and bids). The invitations expected for projects are made public and is accompanied by a clear set of guidelines that the bidders must follow.

UAE is considered to have the market for all types of services and industries. From Construction and IT to Healthcare and Oil/Gas industry, there are opportunities available for all types of projects and industries. The current time is considered as the most crucial time for the UAE in particular as the government is giving a major push to improve the economy of the country and provide opportunities to its citizens to get involved in tremendous development work happening around the country. At the same time, it is also inviting world-class companies to do business in the country and open up even more opportunities for the people inside as well as outside the region.

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