Why buying land and building your property is cheaper than buying one

 In developing countries like Indonesia, it is better and cheaper to buy land and build property then buy from a developer and lend from a bank.Al though debateble here are the arguments.

Buying land and building your own property can be a cost-effective option for homeowners. While many people assume that buying an existing property is the more affordable option, the reality is that building a new property can save you money in the long run. In this article, we'll explore the reasons why buying land and building your own property is cheaper than buying an existing property.

Customization:

One of the primary advantages of building your own property is the ability to customize it to your needs and preferences. When you buy an existing property, you may need to spend money on renovations or upgrades to make it fit your lifestyle. With a new build, you can design the property to your exact specifications, which can save you money on renovations down the line.

Energy Efficiency:

New homes are generally more energy-efficient than older homes. When you build your own property, you can incorporate energy-efficient features such as solar panels, high-efficiency HVAC systems, and insulated windows. These features can help you save money on your energy bills in the long run.

Lower Maintenance Costs:

Older homes require more maintenance and repairs than newer homes. When you build your own property, you can incorporate modern building materials and technologies that require less maintenance. This can save you money on repair costs and help you avoid costly renovations in the future.

Lower Property Taxes:

Newly built properties are often assessed at a lower value than older properties, which can result in lower property taxes. Additionally, if you incorporate energy-efficient features into your new build, you may be eligible for tax incentives or rebates that can further reduce your property taxes.

No Hidden Costs:

When you buy an existing property, there may be hidden costs that you're not aware of. For example, you may need to pay for a new roof or HVAC system shortly after moving in. With a new build, you'll know exactly what you're getting, and there are no hidden costs that can surprise you down the line.

Better Financing Options:

Building your own property may offer better financing options than buying an existing property. For example, construction loans may offer lower interest rates and longer repayment terms than traditional mortgages. Additionally, some lenders may be more willing to work with you if you're building your own property, as they can be more confident in the value of a new build.

In conclusion, building your own property can be a cost-effective option for homeowners. By customizing the property to your needs, incorporating energy-efficient features, reducing maintenance costs, lowering property taxes, avoiding hidden costs, and securing better financing options, you can save money in the long run. While building a new property requires more upfront costs, the savings you'll see over time can make it a more affordable option than buying an existing property.

How to Prepare for A Foreclosure

A recent viral news , a father of three commited suiced amid his financial problems. What precisely happen was 2 days before his suicide his house was in forclosure. Personal financial knowledge isn't taught at schools so many people had to learn it by experience the hard way. One of them are regretful property investment choices they made in the past. 

So what is forclosure?

Foreclosure can be a stressful and challenging process for homeowners. It's a legal process that occurs when a homeowner is unable to make their mortgage payments, and the lender repossesses their property. While facing foreclosure can be overwhelming, there are steps homeowners can take to prepare themselves and minimize the impact of this process. In this article, we'll discuss how to prepare for a foreclosure and what steps you can take to minimize its effects.

Understand the foreclosure process:

The first step in preparing for a foreclosure is to understand the process. Foreclosure laws vary from state to state, so it's essential to research the laws in your area. You should also reach out to your lender and ask them about their specific foreclosure process. Understanding the process will help you know what to expect and give you time to prepare.

Communicate with your lender:

Communication with your lender is crucial in preparing for a foreclosure. If you're having trouble making your mortgage payments, reach out to your lender and let them know. They may be able to work with you on a solution that can help you avoid foreclosure. For example, they may offer a loan modification or a forbearance plan.

Explore your options:

There are several options available to homeowners facing foreclosure. Some of these options include loan modifications, forbearance plans, short sales, and deeds in lieu of foreclosure. Each of these options has its advantages and disadvantages, so it's essential to explore them all and determine which one is the best fit for your situation.

Seek legal assistance:

Foreclosure is a legal process, and it's important to seek legal assistance if you're facing foreclosure. A foreclosure attorney can help you understand your rights and options and can also negotiate with your lender on your behalf. They can also advise you on the best course of action to take.

Prepare financially:

Foreclosure can have a significant impact on your credit score and financial situation. It's important to prepare financially and have a plan in place to minimize the impact. You should consider creating a budget, cutting unnecessary expenses, and exploring other sources of income.

Plan for relocation:

If foreclosure is unavoidable, it's important to plan for relocation. You should start looking for a new place to live and consider the costs associated with moving. You may also need to consider selling some of your possessions or downsizing your living situation.

Foreclosure can be a challenging process, but there are steps homeowners can take to prepare themselves and minimize the impact. By understanding the foreclosure process, communicating with your lender, exploring your options, seeking legal assistance, preparing financially, and planning for relocation, you can make the best of a difficult situation. Remember, the most important thing is to stay positive and stay focused on finding a solution that works for you.

LAST WARNING, WE'RE HEADING FOR A CRISIS. SELL YOUR PROPERTY NOW !

 If you own a property or properties in the US, you must know that a housing crisis is dead ahead. In the NYTimes article  the housing market will go low as 20-30%. 

Although the market is tough these days but selling your property now and flip it into cash is the best, unregretful thing you can do now.

Even for borrowers using property , according to CBSNews its time to use your home equity now then later because it will be useless, low valued by the banks. But becarefull of the interest rates, because in a crisis it will increase.

Selling a property can be a stressful experience, especially when you need to sell it quickly. Whether you are facing financial difficulties, relocating to a new area, or simply want to cash in on your investment, there are several steps you can take to sell your property quickly. In this article, we will discuss some effective tips for selling your property as quickly as possible.

Price Your Property Competitively

One of the most important factors in selling a property quickly is pricing it competitively. Your property should be priced in line with similar properties in your area, and it should not be overpriced. If you price your property too high, potential buyers may overlook it, and it may take longer to sell. On the other hand, if you price your property too low, you may end up losing money.

Enhance Your Property's Curb Appeal

The first impression that potential buyers have of your property is critical. If your property does not look attractive from the outside, potential buyers may not want to take a closer look. Enhancing your property's curb appeal is an effective way to make it more appealing to potential buyers. This can include cleaning up the landscaping, painting the front door, and making any necessary repairs to the exterior.

Make Necessary Repairs and Improvements

Before putting your property on the market, it's essential to make any necessary repairs and improvements. This includes fixing any plumbing or electrical issues, repairing any structural damage, and making any cosmetic improvements, such as painting or replacing flooring. A well-maintained property will be more appealing to potential buyers, and it may sell more quickly.

Stage Your Property

Staging your property can also help it sell more quickly. This involves arranging furniture and decor in a way that showcases the property's best features and makes it more appealing to potential buyers. You can hire a professional stager or do it yourself by decluttering and depersonalizing the space.

Hire a Real Estate Agent

Working with a real estate agent can also help you sell your property more quickly. A knowledgeable and experienced agent can help you price your property correctly, market it effectively, and negotiate with potential buyers. They can also handle the paperwork and other details of the transaction, which can be time-consuming and stressful.

Market Your Property Effectively

Effective marketing is key to selling your property quickly. Your agent can help you create a marketing plan that includes listing your property on multiple websites, using social media to reach potential buyers, and hosting open houses and other events. The more exposure your property gets, the more likely it is to sell quickly.

Be Flexible and Responsive

Finally, it's essential to be flexible and responsive when selling your property. This means being available for showings, responding quickly to inquiries from potential buyers, and being willing to negotiate on price and other terms. The more accommodating you are, the more likely you are to sell your property quickly.

In conclusion, selling a property quickly requires a combination of pricing it competitively, enhancing its curb appeal, making necessary repairs and improvements, staging it effectively, working with a real estate agent, marketing it effectively, and being flexible and responsive. By following these tips, you can increase your chances of selling your property quickly and with minimal stress.

How to prepare for a housing Market Crash

Looks like the property especially housing market crash indicators are getting more clear everyday. Deep impact of the crash will be felt by those dealing with real estate. When a crash happens, you'd wish you didn't take any real estate loans, sold your property earlier, and other plenty of wishes such as managed your finances while things are still normal.

The housing market is one of the most important sectors of any economy, and a crash can have devastating effects on homeowners, real estate investors, and the economy as a whole. While no one can predict the timing or severity of a housing market crash, it's important to be prepared in case one does occur. 

Here are some tips on how to prepare for a housing market crash.

Build up your emergency fund

Having a healthy emergency fund is always important, but it becomes even more crucial during a housing market crash. If you lose your job or your home value plummets, having a financial safety net can help you weather the storm. Aim to save three to six months' worth of living expenses in an easily accessible savings account.

Pay down debt

When the housing market crashes, credit can become tight and interest rates can rise. To avoid being caught in a debt trap, pay down high-interest debt as much as possible before a crash occurs.

Don't stretch your budget

When the housing market is booming, it's tempting to stretch your budget to buy a bigger or nicer home than you can really afford. But when the market crashes, you could find yourself underwater on your mortgage, owing more than your home is worth. To avoid this, only buy a home that you can comfortably afford with a fixed-rate mortgage.

Diversify your investments

If you're heavily invested in real estate, a housing market crash could wipe out a significant portion of your net worth. Diversify your investments across different asset classes, such as stocks, bonds, and commodities. This will help protect your portfolio from a housing market crash.

Be prepared to sell or rent your property

If you own a home or investment property, be prepared to sell or rent it out if the market turns south. Having a contingency plan in place can help you avoid financial disaster.

Keep an eye on the market

While no one can predict the future, it's important to stay informed about trends in the housing market. Keep an eye on housing prices, mortgage rates, and economic indicators that could signal a downturn. If you see warning signs, be prepared to act quickly.

In summary, preparing for a housing market crash involves building up your emergency fund, paying down debt, not stretching your budget, diversifying your investments, being prepared to sell or rent your property, and keeping an eye on the market. While these steps won't guarantee that you'll be immune to the effects of a housing market crash, they can help you minimize the damage and come out on top in the long run.

This Isn't Good. Morgan Stanley projects Commercial Real Estate is headed for a Crisis worse than 2008.

Here we go again. Fasten your seatbelts and get prepared. The economic crises is already in the coastal seas near and heading for landfall and things will get tough. No time to regret about the morgage you took years ago when interest rates will hike beyond imaginative dreams. Middle middle will become middle low which actually translates : poor American houshold group, stuck in debt, jobless cause of AI , no working government policies and other nowadays challenges.

This article by Morgan Stanley is that LEADING INDICATOR, that things will get bad to worse. Their analyst looks at numbers for their entire life. And confirmed by other experts like Robert Kyosaki. This article is close to a PREDICTION TO WHAT WILL HAPPEN IN THE FUTURE.

In February, a PIMCO-owned office landlord defaulted on an adjustable rate mortgage on seven office buildings in California, big apple and New Jersey whilst monthly payments rose because of high interest charges.

Brookfield, the largest workplace proprietor in downtown los angeles, that month selected to default on loans on  buildings in preference to refinance the debt due to susceptible call for for office space.

They are a bellwether for what's possibly to return, as extra than 1/2 of the $2.Nine trillion in business mortgages might be up for refinancing in the next couple of years, in line with Morgan Stanley.

“Even if current rates stay where they are, new lending rates are likely to be 3.5 to 4.5 percentage points higher than they are for many of CRE’s existing mortgages,” wrote Morgan Stanley Chief Investment Officer Lisa Shalett, in a recent report.

Even before the fall apart of Silicon Valley bank and Signature financial institution in March, the commercial actual estate marketplace became handling a number of demanding situations along with dwindling call for for workplace space added on faraway paintings, extended preservation expenses and hiking interest prices.

With small- and medium-length banks accounting for 80% of industrial real estate lending, the situation may quickly get worse, says professionals.

Business belongings fees should fall as plenty as 40% “rivaling the decline throughout the 2008 monetary crisis,” forecast Morgan Stanley analysts.

“These kinds of challenges can hurt not only the real estate industry, but also entire business communities related to it,” says Shalett.

Are all commercial real estate in trouble?

Business actual property consists of office homes, purchasing centers, multi-circle of relatives residences, hotels and data centers.

Commercial real estate includes office buildings, shopping centers, multi-family apartments, hotels and data centers.

“It’s a wide bucket of assets,” says Mark Grinis, EY Americas Real Estate, Hospitality & Construction leader. “If you go to our data centers or in our industrial buildings that are powering e-commerce, they're doing quite well. If you go into the multi-family business, rents maybe softening a little bit, but there's still an undersupply of housing. The elephant in the room is office space, that’s going through a transformative shift.”

When it comes to office loans, since 2021, 44% more by volume were in delinquency and 55% more were in special servicing, according to Trepp, a provider of data and insights on commercial real estate.

"Storm clouds are absolutely building," says Grinis.

Private equity to the rescue of office homes?

In the brief term, poorly dependent, capitalized and financed homes are in all likelihood both go through a few form of exchange of ownership or undergo foreclosure, says Grinis.

“you are gonna see some eggs damaged as these things (mortgages) mature and come due,” says Grinis. “and that they either must find someone that'll deliver them additional fairness capital, they have to get their lender to be flexible or it'll move back to the financial institution.”

When the rate is right, assume personal capital to step in.

“It’s a publicly traded security and plenty of people are looking at some of these workplace stocks and saying, ‘God, those are a quite bargain,” so non-public equity will, in some unspecified time in the future while the fee is right, be there.”

Angle from a real estate firm

Kip Sowden, CEO of Dallas-based totally RREAF Holdings, a non-public actual property investment company with $5 billion in property under management, says he’s visible business reduce due to tighter lending necessities.

The organisation, which operates in 14 states, develops multi-family dwellings, beachfront resorts, big residential groups, extended stay hotels and is in the procedure of growing RV parks. 

In 2022, the corporation handed $1.Five billion in deal volume, up from $1.Three billion in 2021, he said. 

 “And in 2023, we suppose the ones numbers will likely be reduce in half because of higher hobby charges and simply contraction in the quantity of offers monetary establishments will appearance to fund.”

Sowden, who borrows from nearby banks, says underwriting requirements have emerge as very stringent.

“ a lot greater fairness is necessary to transact than before,” he said. 

Workplace-to-residential conversions are pinnacle of mind

Office –to–residential conversions had been a hot topic of dialogue ever for the reason that pandemic emptied out office buildings.

Country and local officials can assist developers caught with languishing homes at the same time as addressing low priced housing challenges in towns by using fast-monitoring zoning changes required for these conversions, say experts.

“Cities like New York and San Francisco are jewels of urban landscape and nobody benefits when these urban centers suffer,” says Grinis.  "And so, there's a call to action with respect to governments, private capital and then to maybe to some extent, regulators and legislators to ensure that the vibrancy of cities continue.”

Original Article :

Commercial real estate is headed for a crisis worse than 2008, Morgan Stanley analysts say