Will the cost of oil and gasoline impact real estate?
As the price of oil rises toward the $120 per barrel mark, experts are already predicting $180 a barrel within the next 18 months resulting in gasoline prices of over $5 per gallon. It should come as no surprise that rising gasoline and fuel prices cut into the budgets of home buyers, but it might impact the real estate market in ways you haven't thought of yet.
Real estate investors should be aware of future trends that could impact their rental properties and property appreciation in order to prepare, protect and profit from the coming trends.
1. Inflation. The rising cost of fuel and gasoline historically results in increased cost of production, manufacturing and distribution of items throughout the supply chain. Expect the cost of routine repairs to rise but also the cost to build Wisconsin new homes. When the cost of new homes rise, the cost of existing homes also have a tendency to increase due to sheer replacement value.
2. Efficiency. Energy saving appliances, insulated windows and other features that lower the cost of fuel and electricity will be in demand among renters and home buyers alike.
3. Convenience. As gasoline prices rise expect to see increased demand for properties located near major employers, schools and shopping. Not only does it save time but gasoline costs will likely continue to be a growing concern as prices move toward the $4 per gallon or higher mark.
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What is the best way to show my house and the top color trends for 2008?
Before listing your Wisconsin real estate take time to give it a fresh new look with a fresh coat of paint and stylish color trends. According to research conducted by the National Association of Realtors, paint is one of the least expensive and most profitable investments a potential seller can make to increase the value of their home in todays challenging real estate market.
Learn how to make your home look it's best with the top ten color trends for 2008.
- Golden Olive
- Spring Crocus
- Rococco Red
- Pink Mist
- Croissant
- Freesia
- Cantaloupe
- Daiquiri Green
- Snorkel Blue
- Silver Gray
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What's Hot & What's Not ?
Before spending big bucks with an interior designer or staging specialist, take time to do a clean sweep of your own with this quick list of What's Hot & What's Not in Wisconsin real estate or pre-existing Wisconsin homes for sale.
What's Hot: Xeriscaping, low maintenance native plants, chemical free yards, fruit trees and old shade trees.
What's Not: High maintenance chemical laden lawns.
What's Hot: Simple, sleek design. Look to Europe for clean lines in appliances and lighting.
What Not: Bulky brazen lights and complicated appliance panels.
What's Hot: High amp boxes, wireless home networks and backup power sources.
What's Not: Phone jacks in bathrooms...please!
What's Hot: Summer sun kitchens, home spa and personal backyard sanctuary.
What's Not: Jungle gyms, garden tubs and dog "pens".
Take a quick inventory of your property to see for yourself how it measures up. It doesn't take a lot of time or money to make your home look its very best in order to obtain top dollar!
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How can I participate in a worldwide real estate auction?
It should come as no surprise that international borders are quickly becoming mere formalities when it comes to buying and selling real estate. Thanks in part to the favorable exchange rate between the United States and Europe, interest from international real estate investors is becoming a major force in the market.
Despite the falling dollar, United States citizens also benefit from going global as a way to diversify their real estate holdings outside of the states while expanding their own horizons to include affordable beach front property in Dominica or a small vacation home in the Caribbean.
Whether you are selling a new home inWisconsin and would like to appeal to an international audience, or thinking about going global and buying a retirement home south of the border, one increasingly popular alternative is the use of a worldwide real estate auction.
Auctions can be fast, fun and incredibly convenient methods to buy or sell real estate but there are a few things to keep in mind before taking this approach.
1. Reputation. Not all worldwide real estate auctions are equal and it is imperative to do business with only those that understand the complexity of exchange rates, international laws and effective communication.
2. Learn First. Sign up for an account, news and information about upcoming auctions to gain a better understanding of the process, bidding participation and policies to be expected. Simply watch and learn while jotting down any questions that come to mind including average sales price, time to closing, repeat sales etc..
3. Appraisals & Finance. Global real estate sales are governed by the rules of the country in which the property is located so it is important to deal with a knowledgeable professional with experience in international real estate dealings.
4. Title. Always confirm the method and type of title to be issued when buying real estate outside of the states, Many countries only allow limited interest ownership for international buyers while others welcome international buyers. Understand the rights and responsibilities required to take title when buying global real estate and be sure to explain the same to international buyers consider the purchase of your Wisconsin real estate.
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What type of real estate software do I need?
Real estate software used to consist of little more than a spreadsheet with a few formatted cells; thankfully those days are over! Today, real estate investors and home buyers alike will benefit from the wide array of real estate software choices designed to tackle the most challenging problems including:
Taxes. One of the most helpful real estate software programs available target taxation issues. There are numerous commercial programs available ranging from under $20 to hundreds of dollars, so take the time to select the one that is right for you. Pay special attention to how your real estate is held, including individual holdings, LLC, Corporation or other methods since most software programs will be geared toward one or another.
Design. Whether you are planning to add on a room or build a new home there is a software program available. Programs range from simple to highly detailed and complex suitable for professional architects, so decide in advance what your objective is, and then request a demo model before buying.
Remodel. Real estate investors and homeowners alike will appreciate the newest programs and features designed to help keep the task of remodeling on budget and looking great. Upload photo's of the room with furniture to see how a new color, door or window will look, or design full spec's to take to the permit department for approval.
Landscape. Make calculations to determine the amount of mulch and dirt required for the new garden, preview which trees will look the best in the yard or design your own backyard butterfly garden with a few clicks of the mouse. Advanced features include irrigation design, topography and other considerations. Try a few before you buy or just spend time experimenting!
Investing. Mortgage calculators, long term investment analysis and other tools are available as stand alone applications or as part of various real estate investment software suites.
Communication. Real estate investors will find communicating with tenants, property managers and repair persons easier than ever with pre-made real estate forms, general notifications and other commonly used letters available in various real estate software programs.
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What can I do to spruce up my home before putting it up for sale?
These growing green trends are a great way to spruce up your home and compete with the best Wisconsin homes for sale on the market this summer!
Rent a Garden! Beautify your home and garden with lush plants and flowers even if you don't have a green thumb! This nifty little trick can work wonders to create the look and feel of a restful garden or enticing entrance without the work. Simply take a tip from business associates and have fresh flower or potted plants delivered to your home. They will come back as often as required to water and maintain the plants looking great for as long as you need them.
Green Roof Tiles. The perfect solution for the room with a bad view! Turn a second floor window that looks down on an ugly rooftop from an eyesore to a great view with green roof tiles combined with wildflower seeds! These easy-to-install tiles are made of real grass and are capable of growing shallow rooted plants like wild flowers. Installed so that they won't cause damage to the existing roof structure and watered by the rain, it's easy to create your own "hanging gardens" sure to inspire awe in the toughest of critics!
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What is a phantom tax?
The real estate market has had it's up and downs but recent media attention has focused a great deal on foreclosures making it seem much easier than it really is to simply "walk away" from a property. The first line of defense is to educate real estate investors and sellers about the true cost of foreclosure including the dreaded "phantom tax". Here to help are a few facts everyone who owns Wisconsin real estate should know before considering foreclosure.
1. Bankruptcy Isn't Always a Solution. The new Bankruptcy Reform bill makes it harder than ever to "forgive" debt; instead, most homeowners will only be allowed to restructure the debt and make payments over a period of years until the debt is satisfied.
2. Responsible for the Difference. If a house or property goes into foreclosure it may not sell for a high enough price to cover the cost of the original mortgage, other liens, real estate commissions, collection fees, taxes and insurance. The difference between the selling price and total amount owed remains the responsibility of the original homeowner unless "forgiven" by the lender.
3. Debt Forgiveness is Taxable! Yes, it is true. IRS considers the amount of money "forgiven" as a taxable transaction. Depending upon the amount of money involved, it can put you into a higher tax bracket and create a large tax bill. Remember, IRS tax liens are never forgiven nor can they be discharged during bankruptcy proceedings.
Real estate investors seeking short sales should make sure sellers understand the full implications of foreclosure if they choose to remain in the home instead of working with the bank or agent to secure a sale. It is often a win-win situation for those who purchased more home than they were able to afford.
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