How can i Afford Reverse Mortgage? – Reverse Mortgage Information –

A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) and allow homeowners to convert their home equity into cash with no monthly mortgage payments.

After obtaining a reverse mortgage, borrowers must continue to pay property taxes and insurance and maintain the home according to FHA guidelines. Typically the loan does not become due as long as you live in the home as your primary residence and continue to meet all the loan obligations.

Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage often use the reverse mortgage loan to pay off their existing mortgage and eliminate monthly mortgage payments.

reverse mortgage loan uses a home’s equity as collateral. The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates and the lesser of the home’s appraised value, sale price and the maximum lending limit.  The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements.  In addition, you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.
Related Topics:

The loan does not generally have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away.  At that time, the estate typically sells the home to repay the balance of the reverse mortgage and the heirs receive any remaining equity. The estate is not personally liable for any additional mortgage debt if the home sells for less than the payoff amount of the reverse mortgage loan.

Eligible Homes Types for Reverse Mortgages

Most single-family homes, two-to-four unit owner-occupied dwellings or townhouses and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.

Inheritance

When the reverse mortgage loan does become due, the borrower’s heirs/estate can choose to repay the reverse mortgage loan and keep the home or put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.
Read More Topics:

If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.

A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.

Distribution of Funds

Reverse mortgage loan proceed can be received in any combination of the following options:

  • Line of credit – draw as needed up to the maximum eligible amount
  • Lump sum – a lump sum of cash at closing (only available on fixed-rate loans)
  • Tenure – monthly payments for the life of the loan
  • Term – monthly payments for a specific number of years

Borrowers may access the greater of 60 percent of the principal limit amount or all mandatory obligations, as defined by the HECM requirements, plus an additional 10% during the first 12 months after loan closing. The combined total of mandatory obligations plus 10% cannot exceed the principal limit amount established at loan closing. The borrower may also need to set aside additional funds from the loan proceeds to pay for taxes and insurance.

Reverse Mortgage Eligibility

To be eligible for a reverse mortgage loan, the FHA requires the youngest borrower on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.

Visit This To Read More About Real Estate, Mortgage and Reverse Mortgage.

Hope you find this useful.

Source: reverse.org

Advertisements

What are Reverse Mortgage Affordability, Facts, Guide and Requirements? – Reverse Mortgage Information –

What is a Reverse Mortgage?

A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) and allow homeowners to convert their home equity into cash with no monthly mortgage payments.

After obtaining a reverse mortgage, borrowers must continue to pay property taxes and insurance and maintain the home according to FHA guidelines. Typically the loan does not become due as long as you live in the home as your primary residence and continue to meet all the loan obligations.

Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage often use the reverse mortgage loan to pay off their existing mortgage and eliminate monthly mortgage payments.

reverse mortgage loan uses a home’s equity as collateral. The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates and the lesser of the home’s appraised value, sale price and the maximum lending limit.  The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements.  In addition, you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.

Related Topics:

The loan does not generally have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away.  At that time, the estate typically sells the home to repay the balance of the reverse mortgage and the heirs receive any remaining equity. The estate is not personally liable for any additional mortgage debt if the home sells for less than the payoff amount of the reverse mortgage loan.

Reverse Mortgage Eligibility

To be eligible for a reverse mortgage loan, the FHA requires the youngest borrower on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.

Eligible Homes Types for Reverse Mortgages

Most single-family homes, two-to-four unit owner-occupied dwellings or townhouses and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.

Inheritance

When the reverse mortgage loan does become due, the borrower’s heirs/estate can choose to repay the reverse mortgage loan and keep the home or put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.

Read More Topics:

If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.

A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.

Distribution of Funds

Reverse mortgage loan proceed can be received in any combination of the following options:

  • Line of credit – draw as needed up to the maximum eligible amount
  • Lump sum – a lump sum of cash at closing (only available on fixed-rate loans)
  • Tenure – monthly payments for the life of the loan
  • Term – monthly payments for a specific number of years

Borrowers may access the greater of 60 percent of the principal limit amount or all mandatory obligations, as defined by the HECM requirements, plus an additional 10% during the first 12 months after loan closing. The combined total of mandatory obligations plus 10% cannot exceed the principal limit amount established at loan closing. The borrower may also need to set aside additional funds from the loan proceeds to pay for taxes and insurance.

Visit This To Read More About Real Estate, Mortgage and Reverse Mortgage.

Hope you find this useful.

Source: reverse.org

What is Reverse Mortgage? – Reverse Mortgage Information –

What is a Reverse Mortgage?

A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) and allow homeowners to convert their home equity into cash with no monthly mortgage payments.

After obtaining a reverse mortgage, borrowers must continue to pay property taxes and insurance and maintain the home according to FHA guidelines. Typically the loan does not become due as long as you live in the home as your primary residence and continue to meet all the loan obligations.

 

Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage often use the reverse mortgage loan to pay off their existing mortgage and eliminate monthly mortgage payments.

reverse mortgage loan uses a home’s equity as collateral. The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates and the lesser of the home’s appraised value, sale price and the maximum lending limit.  The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements.  In addition, you may need to set aside additional funds from loan proceeds to pay for taxes and insurance.

Related Topics:

The loan does not generally have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away.  At that time, the estate typically sells the home to repay the balance of the reverse mortgage and the heirs receive any remaining equity. The estate is not personally liable for any additional mortgage debt if the home sells for less than the payoff amount of the reverse mortgage loan.

Reverse Mortgage Eligibility

To be eligible for a reverse mortgage loan, the FHA requires the youngest borrower on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.

Eligible Homes Types for Reverse Mortgages

Most single-family homes, two-to-four unit owner-occupied dwellings or townhouses and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.

Inheritance

When the reverse mortgage loan does become due, the borrower’s heirs/estate can choose to repay the reverse mortgage loan and keep the home or put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.

Read More Topics:

If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.

A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.

Distribution of Funds

Reverse mortgage loan proceed can be received in any combination of the following options:

  • Line of credit – draw as needed up to the maximum eligible amount
  • Lump sum – a lump sum of cash at closing (only available on fixed-rate loans)
  • Tenure – monthly payments for the life of the loan
  • Term – monthly payments for a specific number of years

Borrowers may access the greater of 60 percent of the principal limit amount or all mandatory obligations, as defined by the HECM requirements, plus an additional 10% during the first 12 months after loan closing. The combined total of mandatory obligations plus 10% cannot exceed the principal limit amount established at loan closing. The borrower may also need to set aside additional funds from the loan proceeds to pay for taxes and insurance.

Visit This Blog To Read More About Real Estate, Mortgage and Reverse Mortgage.

Hope you find this useful.

Source: reverse.org

What are the Costs I will have to pay For a Reverse Mortgage?

How much does a Reverse Mortgage Cost?

As with any other loan, the interest on a reverse loan is only part of how much it will cost you. There are also closing costs that you must pay; for the Federal Housing Authority’s (FHA) Home Equity Conversion Mortgage (HECM) product, these fees are mortgage insurance premiums (MIP), origination fees, third party charges, and servicing fees. Since HECMs dominate the market, we’ll focus our attention here.

Insurance Premiums

When you are taking out one of these loans, you will need to pay a mortgage insurance premium at closing and an annual MIP for the entire life of the loan. The MIP charge at closing is calculated on the lesser of the appraised value of the home or the HECM loan limit, which is currently $679,650. The rate used to vary, but in late 2017 it became 2% for all borrowers. Though this is not an upfront cost, it is important to note that you will also pay an insurance premium throughout the life of the loan. This charge used to be 1.25% of the balance, but in late 2017 it was reduced to .5%

Organization Fee

These fees vary from lender to lender, though they are capped by the FHA. For homes that are valued at $125,000 or less, the origination fee is capped at $2,500. For homes worth more than $125,000, the lender is allowed to charge 2% on the first $200,000 and 1% on the value of the home above $200,000, for a maximum of $6,000. Again, there’s a lot of information to digest here, so let’s consider a reverse mortgage rate example or two.

  1. Home Value at $100,000 Since the home value is less than or equal to $125,000, the lender can charge any amount up to $2,500. The fee is not based on a percentage of the home’s value.
  2. Home Value at $175,000 Since the home is valued at more than $125,000 but less than $200,000, the lender is allowed to charge a maximum of 2% of the home’s value, which in this case is a maximum of $3,500.
  3. Home Value at $250,000 Since the home is valued at greater than $200,000, the calculation here is a bit more complicated. For the first $200,000, the lender may charge up to 2%. For the remaining $50,000, the lender may charge a maximum of 1%. Here’s how this works out:

$200,000 * 2% = $4000 $50,000 * 1% = $500 The fee is therefore capped at $4,500. However, not all lenders charge the maximum fee possible. There are even some instances where you’ll be offered a rebate. The only way to find the lowest fees is to compare multiple offers, and unfortunately most consumers don’t comparison shop.

Servicing Fee

All home loans require servicing, and HECMs are no different.

For those who are not familiar with the term, servicing refers to the maintenance activities that are required throughout the life of the loan, including billing and making sure that the borrower remains current on his or her payments.

With a HECM, servicing includes sending statements about the loan balance, making sure you are paid the proceeds of the loan, and checking to see that you are meeting tax and insurance requirements. If there’s a servicing fee, it’s typically between $25-$35.

If the loan has an interest rate that adjusts every year, the fee may be no greater than $30. If the rate adjusts every month, the cap is set at $35.

The servicing fee for the first month is taken out at closing, and you continue to pay it throughout the life of the loan. These days servicing fees are much less common.

how does a reverse mortgage work

Other Fees

There are other fees, sometimes called third party fees, that you may need to pay as well. These include appraisal and survey fees, title and title insurance fees, and credit checks.

As a general rule of thumb, expect these to cost $1000-2000.

Reverse Mortgage Interest Rates

So far, we’ve shown you many numbers but no rates, and there’s a reason for this – they’re difficult to find! Fortunately, the United States Department of Housing & Urban Development publishes statistics on all HECM originations each month.

Based on the published data, here are the past two years of average rates. We don’t know what rates will be available to you, but you should be able to get an idea of what’s available by looking at some of the more recent averages.

Current Rates

DATE FIXED RATE ADJUSTABLE RATE
2018-01-01 4.90% 4.65%
2018-02-01 4.84% 4.66%

Historical Rates

DATE FIXED RATE ADJUSTABLE RATE
2016-01-01 4.93% 3.54%
2016-02-01 4.90% 3.68%
2016-03-01 4.94% 3.81%
2016-04-01 4.96% 3.93%
2016-05-01 4.95% 4.03%
2016-06-01 4.94% 4.10%
2016-07-01 4.92% 4.16%
2016-08-01 4.91% 4.26%
2016-09-01 4.92% 4.44%
2016-10-01 4.89% 4.54%
2016-11-01 4.91% 4.60%
2016-12-01 4.89% 4.68%
2017-01-01 4.91% 4.72%
2017-02-01 4.91% 4.68%
2017-03-01 4.95% 4.58%
2017-04-01 4.96% 4.50%
2017-05-01 4.97% 4.45%
2017-06-01 4.99% 4.40%
2017-07-01 4.98% 4.42%
2017-08-01 4.98% 4.48%
2017-09-01 4.98% 4.48%
2017-10-01 4.95% 4.49%
2017-11-01 4.97% 4.57%
2017-12-01 4.95% 4.63%

Historical Graph

We can also provide you with information about what determines the cost of interest and provide a few examples for how it could be calculated. First, rates vary based on the program that you choose. Since the vast majority of loans are part of the HECM program, there is no need to worry much about the difference between government and private products, though in general the interest cost of a HECM should be lower since the loan is backed by the FHA.

Source: reversemortgagealert

What are the Pros and Cons of Working in a Real Estate Profession?

When I was having lunch with a co-worker last week, the server overheard us talking about real estate.

“I am thinking about getting my real estate license,’’ she said. We just smiled. We hear this all the time.

To an outsider, selling real estate must seem like the perfect job: flexible hours, the chance for a big payout on every sale, limited training to get a license, and working with people.
It certainly can be an amazing career, but being successful in real estate sales is not easy. It cannot be a side job.

Still interested? Here are suggestions to help you succeed in this industry:

If you are considering a career in real estate, you must look at the whole picture. Real estate is strictly commission, so it is not unusual to go for months without a paycheck.
In fact, it’s very likely. My first sale was within a month of starting, a million-dollar home with a hefty commission, but my second was a $400,000 home more than four months later.

If I had not made that first sale, I’m not sure I would have stuck around for the second.
The new-agent dropout rate is very high. Many struggle to learn the business while building their client base. In 2014, real estate coach Tom Ferry tweeted out that 87 percent of real estate agents fail within their first five years.

Whatever the number is, it’s clear that making a living selling real estate is not as easy as many people think. A National Association of Realtors posting last April noted that the median gross income of its members was $42,500 in 2016 (an increase of 8.4 percent over the year before).
Of course, there are top agents that make much more, but others make much less.

You need to have enough financial resources to carry you through the lean times: 

It’s advisable to have at least six months of living expenses saved when you start. You are an independent contractor, so you must pay for everything, from business cards to your “For Sale’’ signs. There are annual association fees, monthly fees for the Multiple Listing Service, and a variety of other costs associated with this career, including covering your own health insurance.


You have to be self-disciplined: 

It takes a lot of time and effort to learn the business and build a client base.


You must be “all in.’’: 

Because it doesn’t take much to get a license, there is a lot of competition. If you want to make good money, you need to be full time, in my opinion. With real estate sales, there is always a sense of urgency. When a new home comes up, you need to be ready to get your client in immediately and write up an offer. A good agent is available to clients seven days a week.


There are no guarantees the deal will close: 

No one gets paid until the sale goes on record. At times, through no fault of the agent, a deal will fall apart, and all you end up with is more experience. If you cannot financially or emotionally handle this type of a situation, a career in real estate sales is not for you.


You may never get a real vacation: 

Real estate agents almost always end up working on vacation — even if you have told your clients you’ll be unavailable and have other, trusted agents covering in your absence.

At the end of the day, you are representing the client and want to make sure everything goes right — or there will be no payday.
Selling real estate can be a amazing career with unlimited earning potential. But like most businesses, being successful is not easy.

It requires commitment and time to build a client base and reputation.

If you are really serious, I suggest speaking with other successful agents to understand what it really takes to make it in this industry. You may decide to stick to your day job, but if you choose real estate, a career that I love, you’ll want to jump in with your eyes open.

Visit BEINGAREALTOR to get more information like this.

Or Visit This Guide To Get More Details About Pros And Cons Of Real Estate.

Source: realestate.boston

Pros and Cons of Real Estate Career

Though a lot of people think a real estate career is easy money, there is a lot more to it than that. Real estate can be a very rewarding career choice for just about anyone. Those entering the field have quite varied backgrounds and skill sets. You don’t need to be a “salesman”. This is primarily a service business, and serving your clients well will contribute to your success.

The Pros and Cons Of Real Estate Career

 

Any given day, you may bump into a real estate agent who’s a recent high school graduate or a semi-retired business executive in her second career.

Many have found it to be a natural transition from another sales career and more fulfilling to boot! After all, you’re helping people in what is usually the largest financial transaction of their lives. That’s not to mention the emotional impact of changing homes that may be in completely different areas of the country or even the world.

If you question a group of brand new agents, you’ll find very diverse reasons for choosing a real estate career. Many love the “helping people” aspect, while others want to exercise their independent nature and be their own boss. As most real estate agents and brokers are independent contractors, they’re able to set their own work schedules and build their businesses in the ways that they want.

Related Topics:

There are also those who may perceive a real estate career as quite lucrative, yielding excellent compensation for working when and how they want. In “The Challenges of a Real Estate Career”, we look at compensation and statistics for new agent income, as well as why many don’t make it in the business.

If you don’t take anything else away from this site discussion, keep top-level in your thinking that your real estate career is a business. It takes commitment and investment of effort, time and money to build a successful real estate business. That’s whether you remain a “one person show” or if you start a brokerage with agents later.

Update** There’s another characteristic that can help less people-oriented agents to be successful in real estate.  Today’s tech and the mobile world open up new opportunities for success in real estate.  If you can work a good website that’s mobile device friendly, do some social website posting, and respond quickly with email or texting, there is a real chance to connect with prospects.

Pros:

  • You’re an Independent Contractor and control your own business.
  • Your income isn’t limited & based on your skills and work ethic.
  • Set your own work schedule and vacations.
  • Work outdoors and in varied locations.
  • Build future business with great service and client referrals.
  • Enjoy helping people in one of their largest financial transactions.

Cons:

  • You’re an Independent Contractor and on your own to learn the business.
  • Income can be a long time getting going and “feast or famine”.
  • You have to be available when the clients want you.
  • There’s a high failure rate for new agents.
  • Liability and risk are part of representing clients.

To Get More Information about

Visit BeingaRealtor, Hope this will helpful to you.

Source: thebalancesmb

The Pros and Cons of Different Real Estate Investments

Which Property Types are Right for you?

Real estate investors can choose among many types of properties to generate attractive returns. Each property type has its own risk/reward profile, and it’s a great idea to select the types that best meet your criteria.

Questions you have to ask yourself are whether you want to be an active manager or a passive investor, how much you want to invest, your required rate of return to compensate you for the stated risk, whether you are looking to develop and sell/rent a property or simply collect rent from an existing one, and your time horizon for payback.

Let’s review the pros and cons of the most popular real estate investments.

Single-Family Home

You can buy or build the property, or pick it up on a short sale or foreclosure. You may want to buy a fixer upper and flip it, or rent it out for income. Investments can be rather modest compared to those for larger properties and are generally 15%-35% of the total value of the home with a personal guaranty on the loan.

Pros:

  • After-repair value may greatly exceed purchase price
  • Longer tenant leases can yield a higher annual ROI
  • Holds its resale value if the community is thriving and the home is well-maintained
  • Property taxes are often lower than those for multi-family units and commercial real estate
  • Can have lower management costs, especially if responsible tenants take good care of the property
  • Only one tenant can mean fewer demands
  • Quicker to sell on short notice

Cons:

  • Less diversified rental income cash flow compared to multi-family properties. If the one tenant moves out, you have no cash flow from the property until re-rented.
  • Property costs may be higher due to homeowner association fees
  • Potential renters may want more land than is available on the property
  • Fix-up costs may be high and you may have to renovate the property before renting it out or selling it. The high cost may limit your access to additional credit.

Duplex/Multifamily

Usually two to four units, this is a popular investment for those just starting out. Owner occupancy is possible and is generally 15%-35% of the total value of the home with a personal guaranty on the loan.

Pros:

  • Less risk of zero income
  • Always in demand
  • Spreads costs of improvements and repairs over multiple units
  • If four units or less, doesn’t require special financing
  • Convenient to manage rather than having multiple single family homes geographically disbursed
  • Can choose to passively invest in a professionally managed property

Cons:

  • Possibility of higher repair costs: i.e. an overflowing bathtub on a high floor may require repairs to several units
  • Higher turnover rate – turnover is costly because property must be cleaned and repaired, plus the legal and other costs
  • Vacancies take a proportionally larger bite from your income

Apartment Complexes

Large properties with at least five residential units. You may choose to occupy one of the apartments yourself.

Pros:

  • Larger, less risky cash flows and good ROI
  • Always in demand, even when the economy is poor
  • Professional management costs spread over multiple units
  • Possibility of additional value from remodeling, condo conversions and rezoning
  • One geographical location provides economies of scale
  • Shorter depreciation period than that for commercial real estate
  • Occasional vacancies have minimal impact

Cons:

  • Requires more secure financing when more than four units, including higher down payment and reserves
  • Management fees eat into profits
  • Vulnerable to a downturn in the community, since all units are in a single place
  • Relatively illiquid investment, costly to dispose of
  • Possibility of deadbeat tenants
  • Frequent turnover

Mixed Use

Some combination of commercial and residential property, usually located in urban areas. Examples include buildings with ground floor stores and apartments above, or large skyscrapers divided between commercial and residential tenants.

Pros:

  • Can spur community development that increases rents
  • Commercial portions may accommodate longer leases
  • May command higher rents if commercial section is attractive, such as retail stores, a deli, a tavern, etc.
  • Two income streams: residential and commercial
  • May qualify for tax breaks and local concessions
  • Professional management

Cons:

  • May be more speculative and thus harder to finance
  • Higher construction costs
  • Vulnerable to economic downturns
  • Higher legal and administrative costs
  • May be less efficient to manage due to operational conflicts between residential and commercial tenants
  • Possible safety issues

Office

Can have a single or multiple tenants, involving different companies.

Pros:

  • Office tenants may pay premium rents
  • Easier than mixed-use to finance

Cons:

  • Require large investments, especially for downtown locations
  • Even one vacancy can be very costly
  • Tied directly to economy, vulnerable to downturns
  • May have high maintenance costs, including landscaping

Retail

Can involve single or multiple tenants, such as a mall. Giant tenants like box stores can provide substantial rents but require large investments.

Pros:

  • Can select from a wide variety of investments and store sizes
  • Can have multiple tenants
  • Retail leases can have longer durations

Cons:

  • Tied directly to economy, vulnerable to downturns
  • Bankrupt retailers may never pay past-due rent

Industrial

Usually limited to a single tenant.

Pros:

  • Choice of property types, including warehouses, distribution centers, depots, etc.
  • May require a smaller investment than that needed for a retail building or an office
  • Can have long and more lucrative leases

Cons:

  • Properties can be highly specialized and thus harder to rent
  • Costly to convert from one use to another
  • May be only a single tenant – rental income is all or none

Land

Pros:

  • Can hold the land for long-term appreciation and then sell to developer
  • Can have the land rezoned and then sell to developer
  • Can rent the land, perhaps for farming or parking
  • Can develop the land yourself
  • May be completely passive investment with few additional costs other than mowing the lawn

Cons:

  • Zoning rules may not support your plans for the land
  • No guarantee the land will appreciate
  • May discover features that decrease the land’s value, such as restrictive covenants or polluted streams
  • Property taxes must be paid even if the land is unused

To get more information about Real Estate Visit This Guide

or To Read More About Mortgage, Reverse Mortgage or other Lander’s issues Visit This Guide.

Hope this will helpful to you.

Source: peerrealty