6650

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5. You get bored too easily.

I am well aware that we ar e living through what is probably the most ADHD/“shiny object syndrome” society th at we ever have, but you have to resi st. I love technology and gadgets as much as the next person, but if you are not careful, these tech tools and trends will work against your level of success rather than help you be more productive.

Real estate has and always will be a business where personal relationships matter, yet we have become so addicted to our phones that we have actuall y learned how to be completely alone and isolat ed in a crowded room. When we aren’t checking for e- mails, updating our status, or talking on the phone, we are playing games and scrolling for an app we haven’t opened in a while. Stop it!

Learn to batch your e-mail s and only check your phone at certain times of the day. Refocus your energy on what actually matters, which is following your plan, making contacts, setting up your a utomated systems, educating yourself, staying motivated, and sustaining real relation ships with real people. If you aren’t deliberate in what you’re doing, you’ll find you rself wasting time bef ore you know it.

2.Discuss the text with your group mate

3.Prese nt your ideas in writing

Work in a small group. Pr esent your ideas of the best strategy for selling real property.

Learning

strategy

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Unit 3 Buying Real Estate

“You are a King by your o wn fireside, as much as an y Monarch on his Throne”. Servantes

Before rea ding the text match the following w ords with their definition s.

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1.Preparing to Buy

When deciding to buy a property, there are two key areas you need to consider before starting viewing properties:

•Budget, Fees and Finances

•Choosing the Right Property

This guide will talk you through each of these key areas in order to help you structure your search for your perfect new home.

2. Budgeting and Financial Services

Before you search for a property, we recommend you take time to carefully consider your budget. You should consider how much you could spend each month on a mortgage, and also how much of a deposit you will have to put down on a property.

3. Understanding Credit History

Before applying for a mortgage it is a good idea to check your credit history and score to give you a better understanding of the options that may be available to you. By understanding your credit position, our skilled advisors will be able to help you find the right mortgage product available to best suit your needs.

4. Additional Fees and Charges

Most buyers spend a lot of time focusing on their deposit and mortgage during the budgeting phase, but often forget about fees and the cost of moving. It is important

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you ask the right questions from the outset so that you can put together a clear and comprehensive budget.

Here are just a few things you need to consider and obtain costs for when buying a property:

•Conveyancing Costs

•Additional Disbursements

•Stamp Duty

•Mortgage Broker Fees

•Property Survey

•Deposit

•Removals

•Packing Materials

•Royal Mail Redirection Service 5. Choosing the Right Property

a)Amenities and Clubs for Young People; b)Council Tax Bands and Charges; c)Job Prospects; d)Local Development Plans; e)Local Parks and Recreation Areas; f)Local Transport Services; g)School Catchment Areas

5.1. Location. Things to consider

When moving house, it is important for you to consider the type of amenities you will require from the local area, especially if you are relocating.

Below are a few suggestions of key points you may wish to consider when thinking about where to buy:

•(1)__________– to help you with your budgeting

•(2)__________ - this may impact your ability to s ecure a place at the local

school

•(3)___________– if you have children or dogs, is it important to have facilities such as this nearby?

•(4)___________– if you are relocating, it is impo rtant to research the employment potential in the local area, or understand commuter costs/routes if you need to travel to work

•(5)___________– if you don’t drive, or have limit ed access to your own vehicle, you may want to consider your reliance on public transport links

•(6)___________– if you are moving with young chil dren, you may wish to enquire as to whether there are any clubs or amenities for children and young people within the local area, to peak their interest

•(7)___________ - moving is a long term commitment , so you may want to research any plans with the local authority to change, expand or build the local road networks, or if there are any major building developments planned that may affect your access, lifestyle and even view.

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You should always consider the age of any property you may wish to buy. There are benefits and draw backs to buying both new build and older properties dependent on your own personal preferences and point of view.

Older Properties

Older properties tend to have more character. You may find properties full of original features within your budget, but they may be in need of modernization. Sometimes come with hidden costs, with the need to upgrade wiring, heating, repointing and damp proofing. Older properties can provide you with a blank canvas to let your imagination run wild, if you are looking to put your mark on a property. Older properties do tend to have larger rooms and gardens, ideal for growing families and those who like their space.

New Properties

•Are often fitted with luxury kitchens and bathroo ms with integrated appliances.

•Tend to be more energy efficient than older prope rties due to better windows and more efficient heating systems.

•Tend to lack character, but again can provide you with a blank canvas to make it feel more like home.

•Require less maintenance and upkeep.

•Rooms can be a little on the small side, but oft en they do come with space saving features, such as built in storage.

Activity 5

While reading 7.”Property Types” find the words in the text with the following definitions:

1.the various arguments in favor of and against a motion, course of action, etc.

2.self-contained living accommodation often occupying two floors of a larger house and having its own outside entrance

3.land or property held under a lease 2) the tenure by which such property is held

4.a part or portion of something owned, allotted to, or contributed by a person or group

5.a) tenure by which land is held in fee simple, fee tail, or for life b) an estate held by such tenure

6.the rent reserved by a lessor on granting a lease, esp one for a long period of years

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7.1) a particular payment of money; expenditure 2) money needed for individual purchases; cost; charge

8.occurring, done, appearing, etc., once a year or every year; annual

9.1) the act or process of keeping something in good repair, esp over a long period; maintenance 2) the cost of maintenance

10.of great price or value; expensive

7.Property Types

It is important you think about the type of property you want to buy before you start to view. There are pros and cons to all property types and it is important you do your research before considering making an offer.

Flats, Apartments and Maisonettes

•Most flats, apartments and maisonettes are leasehold or share of freehold properties. Leases can be costly to renew and can impact the type of mortgage you can obtain.

•As the fabric of the building and many facilitie s are shared with other residents, most properties will be subject to ground rent and or annual maintenance charges. This will of course need to be considered when working out your budget.

•Many items of general maintenance may be covered by the ground rent and maintenance charges, which may save you future expense for costly repair items such as the roof, or fabric of the property.

•Due to the number of new large developments, availability of flats and apartments can provide more of a choice in and around your chosen location.

Houses

The majority of houses are freehold, and so there are no additional or yearly charges to take into account. If you are looking for outside space, you are more likely to achieve this by buying a house, as opposed to a flat, apartment or maisonette. With houses you are solely responsible for its upkeep and the upkeep of any outside space. Large repairs can prove costly, and need to be taken into consideration. Houses in some areas may not have allocated parking.

8.Viewings

Activity 6 While reading 8.”Viewings” match the En glish and Russian equivalents:

Top Tips for Viewing

Viewing a property is exciting and key to finding the right home for you. However, there are still some essential things you need to look for to make sure it is right for you.

Here are our top tips:

•Look over the outside of a property as well as th e interior

•Try to view with everyone in your moving party, t o avoid the need for multiple viewings to ensure you don’t miss out on your dream property

•Check for damp. Look out for mould, musty smells or dark patches on walls and ceilings

•Don’t forget about the structure of the property. Keep an eye out for cracks, even hairline cracks, on the walls, around windows and doors and on the ceilings

•Allow plenty of time to look around the local nei ghbourhood and the amenities available in the area

•View the area at different times of the day to se e any changes in different lights or surrounding area noise and traffic levels

•Check out our viewing checklist and priority ques tions overleaf to help you make the most of viewings

9.Viewing Checklist and Vital Questions

a)“Can I see any gas or electrical safety certificate s you may have?”

b)“Have there been any neighbour disputes”

c)“How long has it been on the market?”

d)“How long is the lease?” (if there is one)

e)“How many offers has it had?”

f)“How many viewings has it had?”

g)“How much are the service charges/ground ≤ rent?” (if a leasehold)

h)“Why are the Vendors moving?”

i)Check For Signs of Damp

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j)Check the Heating

k)Inspect the Plumbing

l)Look Up at The Ceilings

m)Observe the Exterior

n)Open Doors≤ & Windows

o)Test Switches

(1)___________

≤Look for wet spots, mould, bubbled wallpaper/ paint and condensation. If there are signs of a damp issue, you may want to investigate this further

(2)___________

≤Look for cracks, brown stains, slow drips and signs of leaks. You want to ensure any leaks are from plumbing and not from the roof, windows or the heating system as these could be costly to repair

(3)___________

Open and shut as many doors and windows as possible, view storage space and ensure there is no damage to the window fittings. Be polite and ask with a smile ‘do you mind?’ If the windows appear relatively new, ask if they have a FENSA certificate.

(4)___________

≤Turn the lights on and off, fire up the cooker and check the age of electrical installations.

(5)___________

≤Flush the toilets and turn taps on. Check water pressure and if you can, the hot water to check there are no immediate and obvious issues

(6)___________

≤Ask how old the boiler is, ask if the seller would be kind enough to switch it on. Check radiators for rust and signs of leaks, and make sure they get hot

(7)___________ ≤ Don’t forget to look at the exterior of the property. Observe the guttering, and check the walls for cracks, and the roof for missing tiles

(8)___________

≤This will indicate how quickly you may need to move with any potential offer

(9)___________

≤Asking this question will help you gauge the seller’s position

(10)__________

≤ Consider this when planning to make an offer. If it has been on the market a long time, there may be room to negotiate

(11)__________

≤ Understanding the Vendor’s motivation will help you when thinking about offers and planning moving deadlines

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(12)__________ New heating systems and electrical re-wiring can be costly, so it is important you review the age and condition of these installations

(13)__________

≤Ensure there is at least 89 years on the lease, as this could affect your ability to obtain a mortgage, and lease renewals can be costly

(14)__________

It is important to know the yearly costs when considering buying a leasehold property

(15)__________

≤You want to ensure you have all the facts before committing to a property.

1.Watch the video “Buying Real Estate for only $100: REITs vs Rental Property” https://www.youtube.com/watch?v=AMIO8PNSmV4

While listening to it, fill in the blanks.

Here’s a way you can invest in real estate with as little as $100…it’s a REIT. But how does this compare with just straight up owning rental property, and is it even worth owning a REIT in the first place? So let’s analyze the pros/cons of each!

asset; benefits; commission; control; deal; downside; holding; investment; leverage; manage; management; properties; profit; rate; taxed; website

The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c

Like I mentioned, this is an (1) _________ trust which acts as a (2) ___________

company for real estate. By investing in this company, you thereby are entitled to some of their (3 )___________, in the form of dividends.

Pros to doing this:

-There’s pretty much zero barrier to entry. Anyone with $50-$100 can invest.