A “good real estate investment” can mean different things to different people. For this article, the definition of a good real estate investment is:

A real estate ownership interest, whether a personal residence or rental property, that increases one’s net wealth by a fair rate of return on their invested cash equity; for the corresponding amount of risk they are taking by owning a relatively high risk asset.

What that means is that if you are going to put your invested cash equity into real estate, your net worth should improve by a greater amount than if you invested in a similarly risky asset. And “invested cash equity” isn’t the property price; it is how much cash you took from your bank account to acquire the property, which includes your down payment, plus closing costs, plus rehab costs.

Realize a lot of things can go wrong with real estate ownership, so you had better get a fairly high return on your invested cash equity for it to be a “good deal”. So you ask, how would one figure that out?

For investment properties

Your returns are part cash flows and part appreciation in value. For example, if your property rental income minus expenses produced $250 per month positive ($3,000 per year); and your invested cash equity was $50,000, that’s a cash on cash return of 6.00% ($3,000/$50,000). And that is a pretty darn good deal in real estate.

To add to that, let’s say you project net appreciation in value contributing an extra 1.0% or 2.0% return per year (after subtracting your projected estimated costs of capital repairs and improvements). Summing the cash flows and net appreciation could equal about a 8% to 10%+ projected return per year on a long term basis; and if you achieve those numbers….. that is a good real estate investment!

Some investment properties don’t cut it! Most fancy condos or beach houses, where the net rental income is very low compared to the purchase price, usually have projected negative cash on cash returns. So if you buy a fancy property with negative (4.0%) cash on cash returns, even if it appreciates 2.0% per year, you are typically at a 0.0%, or worse, return on your equity cash investment. And that isn’t a deal most experienced investors would take.

This past blog — “Investing in Real Estate – What is a “Good Deal?” has more information on the specific mechanics of projecting your returns.

For personal residences

You will also be putting down a large amount of cash equity and the calculations are really a little more complicated and difficult because you need to look at how much you are paying in housing expense versus how much that amount would be if you were just renting someone else’s property. So the overall question again is, “Is your wealth going to improve by owning the property?”

Some general guidance herein. As a general rule, if you are not planning to own it for at least five years you will most likely not be adding to your wealth. Any appreciation in value will not compensate for the 8.0% to 10.0% transaction costs on the buying and selling of your property. And even worse, the monthly ownership expense is usually higher than if you just rented a similar property. Therefore, if you don’t plan to own the property a long time, and the longer the better, you will probably do better renting and leaving the hassles and costs of ownership to a landlord.

So a good real estate investment is really one that will increase your net worth over time. The longer you own it, the better the chances for that appreciation in value and wealth building.

As proof positive on this, find someone who has owned real estate for 20, 30, 40 years and ask them what is a good real estate investment? It is generally easy to find them, they are retired, living comfortably, and usually happy to tell you about the properties they bought decades ago!

To read the original article, please click here.

What is a Good Real Estate Investment? is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

We love our pets. In some households they’re our “children.” In others they are dear members of the family. How can you make the stressful time of moving an easy transition for your furry friends?

Pets are routined creatures, not unlike their human counterparts. Unlike our independent selves, however, pets look to us to provide them with safety, affection, and nourishment. This means it is our responsibility to plan ahead so that moving time is low stress for our pets.

First, plan ahead for the days when you are loading moving vans and house doors are likely to be open. This is not the time to be chasing Fido down the street or to lose a kitty with no time to spare.

Enlist the help of either a friend or relative that can act as a pet sitter. If your pet is used to boarding at a kennel then consider letting them stay there for the day or night. Sometimes neither of these options are possible. In this case it is important to keep a pet closed up in one room, crated, or carefully fenced in the backyard while movers are going in and out.

Next, keep routines consistent. Most animals have set times during which they eat and take potty breaks. It’s a good idea to keep on the same schedule. This means taking your dog on walks in the morning or afternoon, even if you’re busy. As an added bonus, this walk can act as your own stress reliever as well!

Keep food consistent as well by planning ahead. Some animals require special prescription veterinary diets. Be sure to stock up at your local vet’s office before leaving town. There’s no guarantee that vets in your new city will carry the same brand. You don’t want to deal with a hunger strike.

While you’re at the vets office get all your animals up-to-date on any vaccinations. Get records or prescriptions for your new vet’s office. Consider microchipping your pet in case they wander or get lost during the move. If you don’t want to microchip them be sure to update their tags with new phone numbers or addresses.

Sometimes moving means packing up and driving across states or the whole country. This can be tiring for everyone involved. Pack a pet care pack which includes things such as a water dish, treats, a bag of food, blanket or towel, leash, and travel litter (for kitties going long distances). Your vet may have other recommendations as well.

Once you arrive at your new home, hurry and set up their “go to” areas. It might be a good idea to isolate them in a bedroom or bathroom where you can keep them contained as you unload your belongings. Set up water, food, a bed, and a litter box if needed. Spend a few minutes with them to reassure them everything is okay. Check on them often.

Moving is a very stressful time. By planning ahead and taking a few compassionate steps you can help your pets transition to their new home with ease and excitement.

To read the orginal article, please click here.

Moving With Fido is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

Here are three ways homebuyers are defeating their own deals in today’s market:

1. House hunting too long. As many as 60 percent of the homes for sale in some markets are short sales. Many other listings are bank-owned (also known as real estate owned or REO) properties, and those homes tend toward two extremes: terrible condition, or so nice at such a low price they receive multiple offers.

Even the nicer, nondistressed homes on the market can end up in and out of contract over and over again due to appraisal or other lending-related issues.

As a result, it is not at all bizarre to hear homebuyers today say they’ve been house hunting for a year, 18 months, even two or three years. When you house hunt that long, you become susceptible to house hunt fatigue, which causes irrationally extreme overbidding out of sheer exhaustion.

Alternatively, it can cause you to settle for whatever house you can get, even if it doesn’t actually meet your needs — then spend the next 10 years obsessively spending to upgrade, improve, repair and furnish the place to try to make it more like the home you actually wanted.

Both of these outcomes negate and deactivate the bargain you stood to score.

To avoid house hunting too long, it’s uber-important to get and stay clear on the differences between what you want and what you need, and to work with a local real estate professional you trust.

Look to your agent to get and keep your expectations centered in reality, so you can make more strategic decisions throughout your entire house hunt, like house hunting in a price range where you’re likely to both find homes that will work for your life and be successful in your efforts to obtain one.

2. Making lowball offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal. But making excessively low offers — offers sellers couldn’t afford to take if they wanted to — can have the very same result.

Buyers who think they can operate strictly on the basis of buyer’s market dynamics — without realizing that most sellers will need to make enough to pay off their mortgage or at least receive the fair market value for their home — are cutting off their own noses to spite their faces, all in the name of trying to score an amazing deal.

Note to “lowballers”: If you don’t actually secure the home, the superlow price you offered is no deal at all.

3. Freak-outs, stress, drama and mayhem. Once was, it was mostly the buyers uneducated about the homebuying process who tended to freak out and stress the most, especially at the top of the market. These were the folks who found themselves defeated at every turn by buyers who knew what they were up against and were prepared to make their best offer on their first offer.

Fast forward, and now the norm is for buyers to spend much more time reading up on what to expect, but the inundation of information can create brand new mindset management challenges.

Almost every buyer is stressed about whether they can qualify for a loan, and about buying into a down market. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of their neighborhood market.

This is unwise if you happen to be, for example, trying to buy a home in the boomtown real estate markets of Silicon Valley. Others go the opposite direction and deny that the basic truths about, say, buying a short-sale listing will actually apply to them (attention homebuyers: buying a short sale usually takes a long, long time).

The emotional freak-outs that result from having your expectations shattered, sometimes brutally, in the course of buying a home often lead to panic-based and fear-based decisions, which can be costly in the short and long term. Additionally, the stress itself can take a toll on your ability to be productive at work, and can even impair your relationship with your mate, neither of which are worth any deal you think you stand to strike.

Again, managing your expectations by working with a trusted broker or agent you feel comfortable relying on to understand the market in your neck of the woods and the type of transaction you want to pull off is essential to downgrading the role emotion plays in your real estate decision-making.

3 Ways Homebuyers Kill Their Own Real Estate Deals is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

Whether you’re prepping your home for sale or have decided that getting organized is one of your New Year’s home improvement resolutions, here are some tips to help curb the clutter in your home.

Start slow

Even if you’re packing up to move and need to get rid of things ASAP, diving in too quickly can leave you overwhelmed and at risk of making choices that you will regret later. Make a list and tackle small areas of your home each day. Perhaps the easiest way is to go room-by-room. This may also get you in the habit of clearing and organizing.

Find Your System

Whether it’s keeping bills in a countertop space in your kitchen, or a designated space somewhere else in the house, find a way to deal with paperwork and stick with it. (Tip: Switching to paperless billing cuts down on tons of random papers).

Corral it

Bins, baskets, drawer organizers or boxes can help organize the small things. Find a place for each item and put it there each time after you use it.

Put remotes, magazines and other living room items in a basket, as shown in this Soquel home for sale.

Multi-purpose

If you’re short on closet space or space in general, purchase furniture that serves a dual purpose of storage to make the most use of the areas you have. Beds with drawers, coffee tables with shelves, and end tables that double as more storage can help you keep the clutter put away. Look for places to stick extra storage.

This kitchen in a Seattle home for sale (below) makes the use of empty space above the window with shelving for large dishes.

Purge

Rather than waiting until the New Year, or spring cleaning to clear out closets, make time once a month to get rid of the things you no longer need. If you’re unsure about tossing something, stick it in a box for a few weeks, and if at the end of that time you forget about the item, chances are you’re free to toss it!

To read the original article, please click here.

Tips to Cut the Clutter is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

This represents the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008. The previous low was 3.74 percent, first reported on Sept. 22, 2011. After dropping to 3.68 percent last Saturday, the 30-year fixed mortgage rate hovered between 3.74 and 3.79 percent for the rest of the week, falling to the current rate early this morning.

“Rates fell to an all-time low this past week amid low holiday volume and continued Federal Reserve mortgage-backed security buying,” said Erin Lantz, director of Zillow Mortgage Marketplace.“Moving forward, we can expect some rate volatility as markets establish their initial baselines for 2012. However, we anticipate mortgage rates to remain relatively stable around 4 percent for the first half of the year.”

Additionally, the 15-year fixed mortgage rate this morning was 3.07 percent and for 5/1 ARMs, the rate was 2.65 percent.

What are the rates right now? Check Zillow Mortgage Marketplace for up-to-the-minute mortgage rates for your state.

To read the original article, please click here.

30-Year Fixed Mortgage Rate Hits All-Time Low is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

Tuesday, January 31st, at 6:30 P.M.

3722 Devine Street
Columbia, SC 29205

(Click For Map)

With interest rates at record lows, now is the perfect time to buy a home! We are hosting a free home buyer seminar TONIGHT at 6:30 P.M. Come hear from some of our real estate professionals as they walk you through the buying process, offer tips, advice and other helpful insight, and close out the time by answering your questions.

Please note: If this date and time doesn’t work for your schedule we can setup a personal seminar just for you! Contact us to set up a time that is convenient for you!

You can call us at803.400.1880 or email at info@TheMatherCompany.com.

FREE Home Buyer Seminar Next TONIGHT t 6:30pm is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

(Map)

Listing Price: $339,900
Square Footage: 2,786
Bedrooms: 4
Bathrooms: 3

This is a beautiful home that feels and looks brand new! The kitchen features all the bells and whistles with granite countertops, stainless steel appliances, and quality cabinets. All the bedrooms are great sizes and the master suite is fantastic. Huge walk in closet and an amazing master bath that features double vanity sinks, large soaking tub, and separate shower. This house was upgraded with lots of nice built-ins, including a wet bar, entertainment center, and lots of storage throughout. The bonus room upstairs is the perfect man cave, play room, hobby area, or bedroom. In addition to the bedrooms there is a separate room that works great as a home office. Plus, the outside features a patio, deck and private backyard. It just about meets everyone’s checklist.

For a video walk-through and pictures, please click here.

Featured Listing of the Week: 377 Hay Hill Court, Elgin, SC 29045 is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

The price for our listing at 128 East Sparrowood Run, Lexington, SC 29072 has been REDUCED!

128 East Sparrowood Run
Lexington, SC 29072

(Map)

Listing Price: $142,000 $149,900
Square Footage: 1,640
Bedrooms: 3
Bathrooms: 2

Darling home in a very popular neighborhood. This home has lots of charm and some great features. Enjoy 3 large bedrooms and 2 updated bathrooms. You have a beautiful large living room with a cozy fireplace. You have the best of both worlds with a formal dining room and a spacious eat in kitchen area next to a beautifully updated kitchen. You can relax on your back deck and enjoy the views of the neighborhood pond. This location is great for shopping and getting to work. Come see it today and move right in!

For a video walk through and pictures, click

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For more information, please contact Charlie Mather:

Charlie Mather Phone: (803) 622-9480 Email: Charlie@CharlieMather.com

Or

Crystal Whitmire Phone: (803) 443-9473 Email: CrystalWhitmire@TheMatherCompany.com

You can also contact Charlie Mather by filling out the following form.

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Open House at 128 East Sparrowood Run TODAY from 2-5 is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

Small preventative measures (such an a ominous sign) can be effective burglary deterrents.
Photo: Flickr | IntangibleArts

For anyone who has seen those World’s Dumbest Criminals clip shows on late-night TV, it may come as no surprise that burglars aren’t always the smartest tools in the shed. But sometimes they don’t even have to be.

Burglars most often enter a place through an unlocked door, says Craig L’Esperance, a detective for a Midwest law enforcement agency. Other times the home owners have a burglar alarm, but forget to set it when leaving the house, even for just a short amount of time.

Those problems are easy enough to remedy, but what about the criminals who aren’t deterred by locks or alarms? L’Esperance is also the author of the thriller Terror from Within, which concerns a burglary crew that commits residential and commercial burglaries and describes how and why they pick their targets, and he and other experts weighed in on how homeowners can safeguard their possessions.

Lock It Up

Photo: Flickr | Ben+Sam

Standard exterior doors should contain a good quality deadbolt lock, says Robert A. Gardner, a certified security and crime prevention consultant with offices in California, Arizona and Nevada. That bolt should have a hardened steel insert and a minimum throw of one inch, so check the packaging if you’re thinking of installing a new one. Double exterior doors should be equipped with a vertical throw deadbolt and all locks should have a five-pin (or more) tumbler, he says.

Sliding doors also need a lock system that prevents the door from being pried open or lifted off of its track.

In general locks should be changed when moving into a new residence or whenever a key is lost. Make sure the locksmith has the necessary licenses and is bonded and insured, and get recommendations from friends or business rating agencies if you can, Gardner says.

Gardner also offers a home security test on his website, so you can see how well your home is protected.

Know Your Neighbors
If you’re not already acquainted with the neighbors on either side of you, get to know them now, says Todd Morris, CEO of BrickHouse Security in New York City.

“Get their cellphone numbers and give them yours,” Morris says. “Then if you see something awry, like a package left out in the rain or a strange car at their home, you can text message them and ask that they do the same for you.”

But Morris doesn’t recommend giving these neighbors – or anyone else for that matter – a key to your house. Use a fingerprint scanner lock instead, he says, or a lock you have to punch a code into to open. Non-key access with an audit trail is the best, he says. That way you’ll know when the dog walker, house cleaner or anyone else enters and leaves your house.

Beware of Dog

You don’t actually have to own a canine to scare a burglar into thinking you do. Post a sign in your yard that says, “Attack Dogs Trained and Sold Here,” says Susan Bartelstone, host of the radio show Crime Prevention 101 in New York. “Extremely Vicious Doberman” works too, she says.

“Then get a recording of a fierce-sounding barking dog and set it on a timer to go off periodically when you aren’t home,” Bartelstone says.

To give a burglar pause, leave a large dog bowl by the front door with the name “Cujo” or “Killer.”

Make It Look Used

Photo: Flickr | Rene Schwietzke

If you are planning a vacation, L’Esperance advises, either put a hold on your newspapers or mail or stop them altogether. Nothing says, “Come in and take what you want,” like a pile of old newspapers on your porch.

Also have your home phone forwarded to your cellphone so people who hear the phone ring will think you’re home, says L’Esperance.

There are some other important ways to deter thieves no matter if you’re there or not, like making sure the grass is cut, the snow is shoveled off the driveway in the winter, and there are no ladders lying about in the yard or against the side of the house. Most burglars know people don’t usually lock second-story windows, L’Esperance says, so a ladder is basically an invitation.

If you have a garage, make sure to protect that as well. Lock your car so nobody can get to your garage door opener and enter your home through the garage or just steal what’s inside the garage.

For the most authentic lived-in look, make it appear you’re home by leaving the TV or a radio on and add a timer to your lights so they turn on at different times of the day and night.

Go Hi-Tech

Senior real estate specialist Chantay Bridges, who works for Clear Choice Realty & Associates in Los Angeles, has seen vacant homes vandalized, with squatters taking up residence in houses for sale and then taking all the appliances, furniture, and fixtures when asked to leave.

Bridges suggests installing a home security system, but using one that has apps for your smartphone so that you can monitor the system from anywhere. Alarm.com lets you send commands from your phone to arm or disarm your system remotely. You can also watch live video from your security cameras to see what’s going on when you’re not there.

Mobiscope.com works the same way and sends e-mail notifications to your BlackBerry if any motion is detected at your home.

To read the original article, please click here.

5 Ways to Make Your Home Safer is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!

128 East Sparrowood Run
Lexington, SC 29072

(Map)

Listing Price: $142,000 $149,900
Square Footage: 1,640
Bedrooms: 3
Bathrooms: 2

Darling home in a very popular neighborhood. This home has lots of charm and some great features. Enjoy 3 large bedrooms and 2 updated bathrooms. You have a beautiful large living room with a cozy fireplace. You have the best of both worlds with a formal dining room and a spacious eat in kitchen area next to a beautifully updated kitchen. You can relax on your back deck and enjoy the views of the neighborhood pond. This location is great for shopping and getting to work. Come see it today and move right in!

For a video walk through and pictures, click

Video

Pictures

[Show as slideshow]

123►

For more information, please contact Charlie Mather:

Charlie Mather Phone: (803) 622-9480 Email: Charlie@CharlieMather.com

Or

Crystal Whitmire Phone: (803) 443-9473 Email: CrystalWhitmire@TheMatherCompany.com

You can also contact Charlie Mather by filling out the following form.

*(denotes required field)

Name: *

E-Mail Address: *

Please type the address of the property you are requesting information about: *

CAPTCHA Code: *

Price Reduced on 128 East Sparrowood Run! is a post from: The Mather Company - Columbia South Carolina Real Estate Be sure to visit The Mather Company - Columbia South Carolina Real Estate for all your real estate needs!