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5 tips to reduce the possibility of defaulting on your mortgage!

by Sanjeev Aneja, ABR, CRS, GRI

One of the best things one can do is to fulfill their American dream of buying their home, for years of enjoyment and prosperity!  Yet the same best thing can turn into a nightmare if the home has to be foreclosed upon. The stress is enormous! The feeling of loss not easy to explain!

A home is a retirement fund for many. The appreciation in price presents lots of possibilities when the home is kept for long enough! Rent on the other hand is wasted money and it only goes up in most cases, year after year.

So buying your home is a good long term investment as long as certain precautions are taken.  Here are 5 things you can do to prevent the foreclosure possibility!  While things can still go wrong, these steps will help a lot from such a thing happening!

1. DO NOT BUY more than you can afford!  This is critical. It's OK to have a little smaller home. Avoid the low down payment trap too.  If saving for down payment is hard now, it will most likely become harder once you own your home!

2. Have atleast 6 months in reserves. This saves you when unforeseen things like sickness, job loss etc that may show up unannounced.

3. Keep adding to your savings each month. Save it from the top before you see your paycheck instead of waiting till the end. This helps increase your reserves in case that need arises (and we hope it never does).

4. Control your expenses, don't buy luxury items that you don't need. Don't go on luxury vacations that you can't afford.  Save now to save your home later.

5. If despite all the above, you face such a possibility, talk to your bank as soon as this possibility arises. Many banks will work with you by lowering your interest rate or making it an interest only loan!  Don't run away from the problem, tackle it head on!

A little discipline goes a long way. Ofcourse there are times when there is nothing you can do to avoid the situation! And it's ok, there is nothing more that you could have done. Things happen. Do your best to prevent before it happens, and move on if it does!

Best wishes with your purchase.  Please feel free to call us if we can help you in any way!

Buying or selling, call our full time professionals at On Track Realty at 732.494.2211. Our promise is that we will always put your interest over ours! If it is not right for you, it's not right for us, it's as simple as that!

Is this a good time to invest in real estate? Buy a home?

by Sanjeev Aneja, ABR, CRS, GRI

We are often asked if this a good time to invest in real estate. The answer always is 'It Depends' and that answer is followed with a question and some advise!

Question we ask is - Do you want to invest in a primary home to live in or in an income producing property? This question then helps us clarify your needs with further details!

If buying for self to live in, the answer is buy (with certain exceptions), regardless of the market conditions. Why? Because no one has the crystal ball to know what the market will do next week, next month, next year, next decade.  As long as you plan to live in the home long enough to go thru any downturn in the market, you are OK to buy! Why rent when buying is possible? Buying ensures more stability and more steady payments in most cases. Buying builds equity with time. Buying also offers tax deductions in most cases!

We spend a lot of time with our potential buyer clients to understand their needs and to make sure that buying is the right decision for them. If we feel that it is not good for them, we will tell them that. No commission is worth putting in jeopardy those who trust us.

If buying to invest, the answer ALWAYS is yes to buy as long as the numbers make sense! Investing should be done with little emotion and much logic! It could be for monthly cash flow or it could be for potential increase in value. Just falling in love with a property is not an investment strategy. Know your goal. Also know that not all properties will offer high returns. Higher the risk, higher the reward, a good phrase to remember. Know if you can tolerate the risk.

Thinking of buying your home, or an investment? Call our full time professionals at 732.494.2211 and let them guide you properly based on your needs! Our goal is not to sell you just for the sake of selling,  our goal is to make sure that the purchase makes sense for you based on your current needs. 

On Track Realty is a licensed real estate broker in NJ, serving clients since 1994 with honesty and integrity! If it is not right for our clients, it is not right for us, it is as simple as that! Has been our promise since inception, always will be.

Track us on internet at www.ontrackrealty.com. Like us on facebook at www.facebook.com/ontrackrealty.732.494.2211

Have any topics that you would like us to address? Please tell us and we will gladly advise on them!

 

Displaying blog entries 1-2 of 2