Are Tiny Homes Here To Stay?

Are Tiny Homes Here To StayThe average size of an American home has been increasing since the 1970s. The American Enterprise Institute (AEI) reports that, in 1973, the median size for a new home in the United States was 1,660 square feet.

Over the past 45 years or so, this increased by more than 1,000 square feet. The median size of a new home is now 2,687 square feet.

The Problem With Big Houses

At first, a big house is appealing until one tries to clean it or pay the utility bills. Many baby boomers, who are now nearing retirement age, are downsizing, especially if their children have all moved away.

Moreover, Millennials are the first generation of Americans to experience a reduced standard of living when compared to their parents.

Many millennials see big houses as wasteful, environmentally destructive, and not sustainable. Also, with the challenge of paying off massive student debt, these young adults are delaying buying a home or may remain renters for their rest of their lives, foregoing the chance to have their own home.

One solution for the problems with big houses is to make homes smaller.

The Tiny House Movement

There are strong motivators for the social trend called “The Tiny House Movement.” Many want a smaller space to live in, which they can more easily maintain and afford. Tiny houses are no more than 400 square feet. That is like living in a compact studio apartment.

TheTinyLife says that tiny houses are being built all over the country. They come in almost any style imaginable. The median price for a quality tiny house is about $40,000, although do-it-yourself types can build one for a lot less.

Some are built on a trailer bed that makes them portable. Others are built to function properly in off-grid locations using solar power. There are even tiny houses that have been printed using 3-D printing technology.

Tiny houses can be luxurious, or they can be built to provide inexpensive solutions for housing that helps the homeless.

The Denver Tiny House Community

Denver is trying an experiment with a group of tiny houses called The Beloved Community Village. This is a group of private one-room units that share a communal kitchen and bathrooms. They started with 11 units and plan to expand to 20.

The challenges they experienced were not necessarily construction related. They needed to change the zoning and occupant density rules to allow the development.

Summary

People make a conscious choice to simplify their lifestyle for the freedom that a minimalistic philosophy brings. It is quite possible to live well while also living with less. Tiny houses may even be part of the solution for the approximately half a million homeless people living on the streets in America as the successful tiny house community village in Denver is now demonstrating.

If you are interested in a new home or in refinancing your current property, be sure to contact your trusted home mortgage professional.

 

Join Or Create A Real Estate Investors’ Pool For Fun And Profit

Join Or Create A Real Estate Investors' Pool For Fun And ProfitMany baby boomers are reaching retirement age. If they set up their financial planning well, while younger, they should have accumulated enough wealth to have some discretionary money available for making investments.

Others, who may be just starting out, have some investment capital but not necessarily enough to buy a piece of commercial real estate on their own. These investors might enjoy a real estate investment pool, also called an investors’ club.

Pooling Resources

One way to get some investment participation in real estate is to pool investment funds needed to have enough for the down payment on a piece of real estate.

For example, if the down payment for acquiring a single-family rental home is $40,000 and four investors chip in, this means the contribution by each one will be $10,000. Each investor will own 25% of the deal. Many can come up with $10,000 for investment but it may not be as easy to find a spare $40,000.

Real Estate Investment Clubs

An investment club is where people get together to review the summary of a real estate deal to discuss its merits as a group investment.

To find a local group there is a nice system called Meetup online, which is a good resource. If there is no real estate investment club in a particular local area, consider forming a new one through that system.

Legal Structure

For real estate purchased by an investors’ pool, the best legal structure is to acquire the property by a newly-formed limited liability company (LLC). An LLC is very easy to create online. The LLC structure limits the liability of its owners (members) to the amount they each invest in the LLC.

It is best to set up a new LLC for each closing of a real estate acquisition. In this way, the owners can be different and to separate the deal from the successes or losses in other deals. Investors in an LLC buy units of the LLC, not shares.

When an LLC starts, it is authorized to issue a certain number of units. Each investment gets a proportional percentage ownership share of the LLC. The investor gets the number of units that represents the percentage value of the investment compared to the total investment.

Work with a real estate agent to help find deals. Use competent legal counsel and a professional accounting firm to set up and manage the LLC properly.

Summary

Investment clubs can be very fun. There may be considerable discussion and disagreement about each potential deal. This is a welcome thing. It is excellent practice to learn how to conduct proper due diligence.

Investors who are just learning about what to look for in a real estate deal gain insights from more experienced investors. Experienced investors stay active and get a chance to pass on their knowledge to the less-experienced ones. Everyone enjoys socializing together and that is a nice extra reward.

Should You Relocate A House To Improve Its Value?

Should You Relocate A House To Improve Its ValueWhat can be done with a house that is just perfect but it is in a bad neighborhood or a dangerous spot? Think about homes that are in decent condition; yet, too close to the water. America is experiencing flooding now that is not supposed to happen in 500 years.

That cute little beach bungalow could easily get wiped out in the next hurricane. It might be time to think about moving those homes to a safer area or higher ground.

The International Association of Structural Movers says that around 8,000 homes are moved each year in America. Relocation may be due to hazards, such as the erosion of an oceanfront or cliff side lot. Others relocate for their historical value.

What It Takes To Move A Home

There are five main considerations for moving a home, which are:

  1. Legal Issues: Moving the home and transporting it must be allowed by law.
  2. Strength: A home must be strong enough to stay together when disconnected from its foundation.
  3. Lift and Transport: It must be possible to lift the home and transport it to the new location.
  4. Access: Access to the home’s new location must be unimpaired on the route to get there and on the site when the home arrives.
  5. Cost: The cost to move a home may be shockingly prohibitive.

Legal Issues

The legal issues can be very challenging. Do not give up easily, if the idea of moving a home is blocked at first because it may be possible to get a one-time waiver from the regulations.

Strength

Some homes are not strong enough to move. However, it is surprising what is possible if the home and/or lot is very valuable.

There are home-moving projects that lifted Victorian-style homes built over one hundred years ago in the most valuable parts of San Francisco. These homes only moved upwards. They stayed on their lots. The moving project raised them 15-feet higher to allow a garage to be built underneath. These well-built wooden homes survived the 1906 earthquake. They were carefully raised without damaging them.

Lift And Transport

Experts use many techniques to lift a home and prepare it for transport. Homes may be transported by strong flat-bed trucks, by industrial, heavy-lifting helicopters, and on barges in the river or ocean. Homes can be disassembled partially to make moving them easier.

Access

When moving a home, even if separated in pieces, the pieces may be very large. The entire transport route needs to be carefully checked by an engineer for proper clearance heights, enough turning radius when needed, and sufficient width for passage.

Cost

While many homes are movable, the cost may be too high to make it worthwhile. However, the cost to move a multi-million dollar mansion falling off a cliff may be far less than the home’s value, which might otherwise be lost.

Summary

If there is a beautiful heritage home sitting on a cliff’s edge overlooking the ocean and teetering on the edge of collapse, there is a new way to think about it. It may make perfect sense to move it to a lot that is down the street and further away from the edge.

If you are interested in purchasing a new home or refinancing your current property, be sure to contact your trusted home mortgage professional to discuss current financing options!

Tips On Making Friends In Your New Neighborhood

Tips On Making Friends In Your New NeighborhoodIt’s often harder to make friends as an adult than it is when you’re a child. It’s even more challenging to make adult friends when you move into a new neighborhood. You may feel like people already have their own group of friends and aren’t looking to include newcomers. Of course, that’s just an illusion.

Here are some easy ways to implement tips for making friends in your new neighborhood.

Put Out The Welcome Mat

Make your front door inviting to the neighbors. Place some cheery flower pots near the porch and buy a nice welcome mat for the front door. Be sure to put fresh light bulbs in the porch lanterns, too. These small touches will show neighbors you’re setting a friendly tone.

Have Coffee And Lunch Out

Make a point of having your coffee breaks and lunch at the nearby cafes as often as possible. Mention to the servers or owner that you’re new in town and this is your first time trying out their menu. They’ll likely take an interest in you and ask what house you bought, and so on. As you continue returning, you’ll be on a first-name basis, which will probably lead to some casual introductions to other locals who are stopping in for coffee.

Host A Housewarming Party

Housewarming parties are a fantastic way to welcome old friends and meet new ones. They are also a great excuse to knock on your neighbors’ doors and personally let them know they’re invited. If you feel uncomfortable having strangers in your new home, make it a backyard BBQ housewarming. In no time at all, you’ll have a new collection of local friends and acquaintances.

Join The Local Clubs

Membership clubs offer a natural way to meet new people without appearing overtly friendly. Look for some local clubs you’re interested in, such as gardening, exercise and book clubs. When you start attending on a routine basis, friendships will organically begin to develop.

Volunteer

If you have an extra hour or two in the week, consider volunteering as a way to help the community and to make new friends. Places that typically need volunteers include theaters, schools and athletic programs.

Making friends in your new neighborhood will enable you and your family to feel more at home sooner. One or more of the above-mentioned tips is likely to work for your personality and preferences.  And don’t forget your real estate and mortgage professionals! They’d be happy to help get you connected as well!

How To Maximize The Resale Value Of Your Home

How To Maximize The Resale Value Of Your HomeThere are a few things to consider, when selling a home, that will help you maximize your potential for a better sales price. Seasoned real estate professionals are one of your best resources for these tips.

The Buyer’s First Impression Is Emotional

The first goal is to improve the buyer’s first impression when they see photos or a video of the home, do a drive-by, or make an appointment to view the home. Work with a real estate agent on staging the home and pay particular attention to curb appeal.

Staging means that a home has no clutter. Remove any personal items (family photos, toys, pets, etc.). Make closets less than one-third full. Make sure the home is immaculately clean. Use nice decor and minimal furniture. 

Logical Backup For The Buyer’s Emotions

Once a buyer has a positive emotional reaction to the home, then to cement the deal at a good price, offer logical backup to support the emotional reaction. Create a handout that lists the amenities and positive attributes of living in the neighborhood, such as good schools. If possible, sell the neighborhood and the community along with the home.

Answer a buyer’s, often unspoken, question of “Why should I live in this area?”

Like-New Condition

Homes that are in perfect condition usually sell for a premium price and may attract multiple purchase offers. Make any repairs that are necessary to ensure all the systems in the home are in working order.

Another confidence builder for a buyer is when the seller reimburses the fees for the inspections needed, from the escrow closing. Let the buyer choose the inspection companies from a pre-approved list that is acceptable for the seller.

Kitchen and master bathroom upgrades usually have a positive impact on the sales price. New appliances can be included in the sale and covered by a home warranty.

Go Green

Homes that are energy efficient and have an alternative energy system, such as solar, are usually more desirable. This is especially true in parts of the country where the monthly utility bills are very high. Add information about the savings on the monthly utility bills, when compared to other homes that are not green, to the home’s selling brochure.

Summary

Top-selling real estate agents know that homes with these characteristics usually command the best prices, receive more offers, and spend less time for sale on the market. Another benefit is that agents get excited about listing high quality homes. They typically feature them prominently in their listings from the agency, on their website, and in all other marketing efforts.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.