There are several ways to use real estate to your advantage if you’re starting to think about retiring, even if you’re years away. Here are three great options to consider:
1. Downsize your home.
One of the simplest ways to save for retirement is to downsize from your current home to a smaller one. Doing this will increase your savings, lower your utility bills, and could reduce or eliminate monthly mortgage payments. If you don’t need all of the space in your current house, this is a great option.
2. Invest in a rental property.
Another way to use real estate for retirement is by investing in a rental property. You’ll receive monthly income from renters and can potentially make a large profit once you decide to sell it. Additionally, if you invest while you’re still working and making an active income, it can serve as a tax shelter and eventually provide passive income after you retire. Rental income is also a good way to reduce debt over the long-term. Of course, this option should only be considered as a long-term investment in order to avoid any short-term tax repercussions or a fluctuating real estate market.
3. Rent out extra space.
If you have extra space, especially if it’s an ADU (additional dwelling unit), there are many ways to make additional income for retirement. You can rent it out short-term through sites like Airbnb.com or lease it out to tenants for longer periods of time. This is a great way to increase income and savings.
If you’d like more information on any of these options, please Contact us! We’re happy to help explain your options.
Communes or communal housing is more commonly known today as “co-housing”. Co-housing, according to Wikipedia is “is an intentional community of private homes clustered around shared space. Each attached or single family home has traditional amenities, including a private kitchen. Shared spaces typically feature a common house, which may include a large kitchen and dining area, laundry, and recreational spaces”. Co-housing may also be in the form of apartments in a building or portion of a building, such as the “Commonspace Community” in Syracuse, New York. As with any housing community, there are both challenges and benefits to living in a co-housing. Members of co-housing communities site health benefits thanks to the decreased loneliness, while others find the increased socialization daunting.
(Scroll down to find out how to start your own commune...)
While most people seem apprehensive about joining an existing co-housing community, a lot of people want to know if it’s possible to start their own “commune”. While it may sound ideal, it’s also quite complex! Once you have 3 or 4 households that want to create a co-housing community, there are a lot of steps involved – in addition to finding the land or space you want to buy. According to co-housing.org, these are just the first steps you’d need to take in order to start your own co-housing project:
Create a vision/goal statement to define the intentions and directions of the community.
Create a group decision and communications process.
Create a financial structure.
Form an LLC (limited liability company) or incorporate.
Create bylaws for the community.
Open a separate bank account for the community.
Collect assessments from members.
Do your research and learn from already-operating co-housing communities.
Additionally, there are steps to register your community, various tax laws for co-housing, and of course, developing and building on the land or space you have purchased. So, if you do plan on creating your own co-housing community, be sure you know what you’re getting into! For more information, you can visit cohousing.org.
While enjoying the gorgeous weekend, we'd love to see you this weekend at these amazing homes during our open house viewings. Stop by and check them out!
Details: Unique opportunity to own a grand 4-bedroom, 2-bathroom duplex home in Irvington. Currently rented for $3200/month, you can have a duplex in one of Portland's premier neighborhoods or convert it back to a single family home, it's up to you! This home has original woodwork and an expansive front porch. The home opens up to a huge, open plan kitchen and the living room is complemented by two fireplaces. The bedrooms and bathrooms are bright and spacious. The basement has all the space you need and is wired separately for you to use as your own personal shop! This house is a one-of-a-kind! (Listing by: Heather Paris)
Details: An investors dream come true! This 3-bedroom,1-bathroom classic bungalow home is perfectly located between the amazing districts of Hawthorne and Division, so you're just blocks away from all the excitement. There's plenty of potential in this fixer-upper. The kitchen and living rooms are bright and inviting, ready for all of your additions. The loft space is spacious, perfect to refurbish as a den or as a space to host guests. The 960 sq ft unfinished basement would be great addition as a family room or movie room. Bring your vision and your tool belt! Link coming soon! (Listing by: Chelsea McAlister)
1300 NE 68th Ave #12, Portland (map/directions); Listing Price: $250k Open House: Sept 9, Sunday, 12-1p Details: Sophisticated and affordable, this 2-bedroom, 1-bathroom condo in easily accessible Montavilla. Open floor plan with wood floors and remodeled kitchen. Two nicely appointed bedrooms and remodeled bath. Two covered parking spaces and private storage unit to boot. Shared outdoor deck and BBQ ideal for hosting get-togethers with friends.(Listing by: Claire Paris)
4401 SE 66th Ave, Portland (map/directions); Listing Price: $325k Open House: Sept 9, Sunday, 12-2p Details: Best bargain in Foster/Powell! This 2-bedroom, 1-bathroom includes an open living/dining room with warm wood floors. Nicely appointed, remodeled kitchen and an amazing yard, with an end of summer harvest waiting for you. Alley access to your garage for your cars and bikes. Link coming soon! Contact us for details. (Listing by: Claire Paris)
4724 N Missouri Ave, Portland (map/directions); Listing Price: $435k Open House: Sept 9, Sunday, 1-3p Details: This spacious 4-bedroom, 1.1 bathroom home is close to Mississippi District's cafes, shops, restaurants, and more! Well-appointed and remodeled with large picture windows facing west, charming built-ins, and hardwood floors gleaming with light. With an easy flow from inside to the deck and backyard, it's ideal for entertaining during these gorgeous late summer nights. (Listing by: Claire Paris)
9119 N Richmond Ave, Portland(map/directions); Price: $375k Open House: Sept 9, Sunday, 1-3p Details: This charming Victorian 2-bedroom, 1.1 bathroom home is located just blocks from downtown St. Johns! Features include high ceilings, warm wood floors, stained glass window, and French doors that lead out to your private deck and yard. The remodeled kitchen makes entertaining easy, and with 2 bathrooms - including a claw-foot tub! - hosting overnight guests is a breeze. The additional 200 square feet basement space makes for a great storage solution. A must-see gem! (Listing by: Claire Paris)
Can't make this weekend? Contact us to schedule a visit by email or phone, 503.998.4878.
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There are a few crucial steps every responsible seller must do when selling their home and moving out. It can be quite the journey to selling your home. Your home is a place where you have spent a lot of time and made a lot of memories and when you have a house cleaning after moving, it gives the buyer a chance to relax, as well. When all the furniture is gone, and the moving boxes are packed away, there are still a few things to keep in mind before you close the door, literally. Here’s an easy to follow checklist of steps for house cleaning after moving; time to get out the rubber gloves!
Item 1: Cleaning a house before moving out
Cleaning your home should go beyond the usual weekly or day-to-day chore. If you don’t have the time to commit to deep cleaning every corner of your home, consider hiring a professional cleaning service to help. When you deep clean your house before moving it helps to emphasize your commitment to the selling process and it doesn’t hurt to make your last impression for your buyers a positive one. Make sure to take everything with you. Unless the buyer specifically asks for a piece of furniture or an appliance, pack everything up and double-check all the rooms, especially basements and attics, for items you may have missed.
Item 2: Disconnect all your utilities
When thinking through cleaning a house before moving out, make sure you take the time to turn off everything electric, disconnect all the appliances you aren’t taking with you, and most importantly, disconnecting all the water sources in your home. A small leak can cause a massive financial headache, if left untreated.
Item 3: Be meticulous inside and outside
It will be important to make a thorough cleaning checklist of every room in the space. Maybe it’s time to fix that leaky faucet or those cracks in the bathroom tiles. As far as the exterior of the home goes, start with front door, the focal point of the home and a fresh coat of paint can go a long way. Putting in the extra effort will show the buyers of your home a level of appreciation for the home buying process.
Item 4: Agreed-upon items
As you are in the process of deep cleaning, make sure any previously agreed-upon items (like furniture or appliances left for the new buyer) are properly repaired or replaced, as agreed upon in the final documents, or are scheduled to be repaired.
Feel free to reach out to me with your additional questions at any time! Through phone or by email, I’m ready to help you through the home-selling process.
Our end-of-year goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
September is finally here and we can't wait for the long weekend and enjoying Labor Day by spending time with family and friends. But before we can enjoy this last summer holiday, we're hosting open houses at these five amazing homes. We'll see you this weekend!
Details: This spacious 4-bedroom, 1.1 bathroom home is close to Mississippi District's cafes, shops, restaurants, and more! Well-appointed and remodeled with large picture windows facing west, charming built-ins, and hardwood floors gleaming with light. With an easy flow from inside to the deck and backyard, it's ideal for entertaining in these long summer nights. (Listing by: Claire Paris)
Details: Sophisticated and affordable, this 2-bedroom, 1-bathroom condo in easily accessible Montavilla. Open floor plan with wood floors and remodeled kitchen. Two nicely appointed bedrooms and remodeled bath. Two covered parking spaces and private storage unit to boot. Shared outdoor deck and BBQ ideal for hosting get-togethers with friends.(Listing by: Claire Paris)
Details: Located at the base of Rocky Butte in Roseway, this 2-bedroom, 1.1-bathroom ranch home is nearby to numerous trails and hiking opportunities.The wood-burning fireplace and open kitchen includes an island with ample seating, making entertaining a dream. There is plenty of room for you and your guests, with a spacious living room and an additional den. Tons of light in your solarium are a perfect place for your plants year round. Enjoy a city garden with fruit trees and there's plenty of space for storage thanks to a garage and shed. This is 1-level living at its finest, with serene nature right in your backyard. (Listing by: Claire Paris)
Details: This charming Victorian 2-bedroom, 1.1 bathroom home is located just blocks from downtown St. John’s and all the fun of Portland! Features include high ceilings, warm wood floors, stained glass window, and French doors that lead out to your private deck and yard. The remodeled kitchen makes entertaining easy, and with two bathrooms (including a claw-foot tub), hosting guests is a dream. The additional 200 square feet basement space makes for easy storage. This is a gem you must see! (Listing by: Claire Paris)
Details: Unique opportunity to own a grand 4-bedroom, 2-bathroom duplex home in Irvington. Currently rented for $3200/month, you can have a duplex in one of Portland's premier neighborhoods or convert it back to a single family home, it's up to you! This home has original woodwork and an expansive front porch. The home opens up to a huge, open plan kitchen and the living room is complemented by two fireplaces. The bedrooms and bathrooms are bright and spacious. The basement has all the space you need and is wired separately for you to use as your own personal shop! This house is a one-of-a-kind! (Listing by: Heather Paris)
Can't make this weekend? Contact us to schedule a visit by email or phone, 503.998.4878.
Our summer goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
Closing day is an exciting day for home buyers. You’ve made it to the finish line and the end is in sight finally! However, there are just a few final steps that need to happen. We’ve outlined what happens at closing for the buyer, to help your closing process be stress-free.
How to Prepare for Closing on a House
Make sure to review the closing disclosure, which outlines the final monetary terms of your loan, any closing costs, and outstanding fees. Your lender will send you all of those documents at least three days before closing on a house, so you have a chance to review it. This way, you can read ahead, before you officially sign the documents at the title agency. Two items you will want to do; schedule a final walk-through of the home with your agent, checking for any home-related issues; and transfer the utility bills to your name, starting on the day of closing.
What to Bring when Closing on a House
Part of what happens at closing is reviewing all of the legal documents to sign, but make sure to bring these 3 things with you on the day of closing:
Each buyer needs a government issued photo I.D., such as a driver’s license
A certified or cashier’s check for the closing costs that you will owe and made out to the title or closing company
Any additional paperwork that you have not yet provided to the title company or mortgage loan officer (i.e., a condo approval letter or originals of copies you’ve provided for the other documents)
Documents Received when Closing on a House
When you sit down at the table at your title office, this is a rough outline of the paperwork you’ll sign:
The loan estimate: this includes the interest rate of your loan and closing costs;
The closing disclosure: the details of your mortgage payments;
The escrow statement: this includes payments the lender will pay from your escrow account;
Mortgage note: this document states your commitment to pay your mortgage;
Deed of trust: this document secures the mortgage note and the title to the property is given to you;
Certificate of occupancy: if you’re buying a newly-constructed home, this is a legal document stating you can move in.
Once you’ve reviewed and signed all the documents, the keys will soon be yours! You’re a brand-new homeowner!
Have more questions about what happens at closing? Give me a call or we can meet and talk further!
Our end-of-year goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
We hope you are enjoying your Friday and looking forward to the weekend ahead, I know we are! This weekend, we're showing these two gorgeous homes in NE and SE Portland. See you out there!
Details: This fantastic 3-bedroom, 1-bathroom home in NE Portland has everything you could want! A large living room, an upstairs lounge, and basement movie room provide plenty of living and entertaining space. Hardwood floors, Schoolhouse Electric fixtures, and ample light provide abundant charm throughout. A big backyard makes it ideal for summer evening gatherings and BBQs. (Listing by: Claire Paris)
Details: This thoughtfully updated Lents 2-bedroom, 1-bathroom bungalow has everything you need! It received a 10/10 home energy score – and its low utilities make living affordable and easy. Wood floors and updated kitchen and bath make this home the rare combination of comfortable and stylish. Enjoy your numerous producing fruit trees and lush garden oasis after a long day, or just relax in your ultra comfortable home and watch the sunset. An oversized garage with workbench means you have plenty of room to store your toys and tools. (Listing by: Claire Paris)
Can't make this weekend? Contact us to schedule a visit by email or phone, 503.998.4878.
Our summer goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
August is here in full bloom. We're enjoying the summer days spent outside with friends, maybe barbequing or trying out a new dinner recipe. While you're out and about this weekend, stop by and see us for three open houses this weekend (one of which is a new listing!) We'll see you out there!
1836 SE 45th, Portland (map/directions); Price: $450,000 Open House: Aug 11 & 12 (Sat & Sun), 12-2p
Details: An investors dream come true! This 3-bedroom,1-bathroom classic bungalow home is perfectly located between the amazing districts of Hawthorne and Division, so you're just blocks away from all the excitement. There's plenty of potential in this fixer-upper. The kitchen and living rooms are bright and inviting, ready for all of your additions. The loft space is spacious, perfect to refurbish as a den or as a space to host guests. The 960 sq ft unfinished basement would be great addition as a family room or movie room. Bring your vision and your tool belt! Link coming soon! (Listing by: Chelsea McAlister)
Details: This spacious 4-bedroom, 1.1 bathroom home is close to Mississippi District's cafes, shops, restaurants, and more! Well-appointed and remodeled with large picture windows facing west, charming built-ins, and hardwood floors gleaming with light. With an easy flow from inside to the deck and backyard, it's ideal for entertaining in these long summer nights. (Listing by: Claire Paris)
Details: This fantastic 3-bedroom, 1-bathroom home in NE Portland has everything you could want! A large living room, an upstairs lounge, and basement movie room provide plenty of living and entertaining space. Hardwood floors, Schoolhouse Electric fixtures, and ample light provide abundant charm throughout. A big backyard makes it ideal for summer evening gatherings and BBQs. (Listing by: Claire Paris)
Can't make this weekend? Contact us to schedule a visit by email or phone, 503.998.4878.
Our summer goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
The first week of August is already upon us; how time flies. We're looking forward to enjoying a much needed weekend. Whether you're stopping by a new vintage store or enjoying the day outside with friends, don't forget to stop by and visit us for two open houses (one newly listed!) this Sunday. We can't wait to see you out there!
This impeccably maintained 4-bedroom, 2.1-bathroom home is just blocks from parks, New Seasons market, and downtown St. John’s. It features ample bedrooms, a den, beautifully designed bathrooms, an attached garage, and plenty of storage space. The open living and dining areas include walls of expansive windows, allowing you to truly appreciate the sophistication and loveliness of the Sean Hogan-designed, low-maintenance landscaping. Make meals and entertain indoors in your beautifully-appointed kitchen with quartz counters and gourmet range, or outdoors on your covered patio or deck. Experience both the ease and grace of living in this gorgeous home. (Listing by: Claire Paris)
Details: This fantastic 3-bedroom, 1-bathroom home in NE Portland has everything you could want! A large living room, an upstairs lounge, and basement movie room provide plenty of living and entertaining space. Hardwood floors, Schoolhouse Electric fixtures, and ample light provide abundant charm throughout. A big backyard makes it ideal for summer evening gatherings and BBQs. (Listing by: Claire Paris)
Can't make this weekend? Contact us to schedule a visit by email or phone, 503.998.4878.
Our summer goal is to reach 100 YouTube subscribers! Help us reach our goal by subscribing here. Don't forget to turn on the notification bell to get all the updates!
This week, we're answering questions and talking about how to buy your first investment property. Investment properties can be a great asset and a way to generate passive income if you’re willing to commit the time and money to it. It’s important to know what to look for in an investment property, how to use financial leverage, and the differences between a second home and an investment property.
What to Look for in an Investment Property
The biggest factor to consider is the neighborhood and accompanying amenities. Finding a good area, close to schools, shopping, and transportation will ensure you have long-term tenants. Something to be think about is purchasing fixer-uppers. In terms of what to look for in an investment property, fixer uppers can be a great way to start building equity. However, it helps if you have previous experience with the process and that you’ve taken the time to get numbers for the costs of repairs. I’ve also found it helps to have backup funds, just in case the repair bids increase.
What is Leverage?
When researching what to look for in an investment property, leverage is crucial step in the process. Leverage is how much money you borrow to finance an investment property, compared to the property’s worth. By using leverage, you’re able to purchase higher-valued properties and appreciate more over time. There can be an exceptional increase in equity once you’ve leveraged your property. To calculate your leverage, you divide your investment property financing amount by the property value.
For example, if you have $50,000 in cash, you can:
Buy a $50,000 investment property, which is 0% leverage.
Buy a $100,000 investment property, use your $50,000, and borrow $50,000. This equals a 50% leverage.
Buy a $200,000 property using the $50,000 on hand and borrow $150,000, which equals 75% leverage.
If property values increased by 7% this year, you would make:
With option 1, your property value is $53,500 and your net gains is $3,500.
With option 2, your property value is $107,000 and your net gains is $7,000.
With option 3, your property value is $214,000 and your net gains is $14,000.
Differences Between an Investment Property and a Second Home
It’s important to realize the main differences between a second home and an investment property. Investment properties are primarily purchased to generate income, save on income taxes, and revenue gained from appreciation in the property value over time. A second home could be a vacation home you live in for periods of time during the year or an Airbnb home you rent as a host, which we talked about last week. If you don’t live in a house on a semi-regular basis, lenders consider it an investment property.
If you're considering starting the process of purchasing or have questions about to what to look for in an investment property, give me a call! I’m always happy to answer your questions.
Don't forget to check out tomorrow's Facebook live video on how to buy your first investment property, at 3p this time!
While enjoying the gorgeous weekend, we'd love to see you this weekend at these amazing homes during our open house viewings. Stop by and check them out!.jpg)
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