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Crazy Myths About Real Estate

The Agents Keep the Commission

This is one of the most common myths that the general public usually believes. This is wrong, the commission that they receive goes to the brokerage company which they work under after the brokerage charges are taken, the agents are paid their part of the cash. The amount the agent receives also depends on his performance and his business model. They do not get paid once every three weeks like the others; it varies from time to time.

Real Estate Investments are Risky

Among the savvy investors, there is a common myth that investing in real estate is very risky. The very nature of investing in real estate is precarious but other than the place or its physical features, the market which it is associated is with is not volatile when compared to a stock exchange. You do not have to worry about losing money as the market associated with real estate is pretty stable. Another assurance you have is a roof to live in; there is no other industry which has a perk like this. Real Estate is much lower in volatility when compared to the stock market.

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Real Estate Agents are Paid Salaries

There is no fixed and uniform salary payment for agents in the real estate market. When an agent takes you around, buys you lunch, answer all your queries, drive you to the house, remember that it is all on their expenses. It should be noted by perpetual house hunters that you would be wasting an agent’s precious time, by just going through a house without any decision, this is why you should have specific criteria in mind before going house hunting, this helps them find a bit more particular home for you.

You Need to Be Rich to Invest

There is this widespread myth that you need to be financially well off to purchase a house; this is far from reality as the majority of the real estate buyers use home loans to buy a property. This home loan covers around 80% of the house’s value, and you have to put in the rest 20%. The 80% that gets loaned can be paid back to the bank in periodic EMI’s. It is very rare to see a person buy a house straight in cash; this is usually the multi-millionaires who indulge in particular investments or multi-million-dollar mansions.

The Home Inspector grades a Home

It is a common belief that a house inspector usually grades a house to a “fail “or a “pass”, this baseless as a house inspector usually inspects the house and provide a complete report from plumbing to roof.

Top 3 Real Estate Agencies in the United States

RE/MAX

RE/MAX was founded by David and Gail Liniger who began their company with a single office in Denver, Colorado in the year 1973. The company mainly focuses on utilising a franchise system and has a network of over 100,000 agents in over 90 nations with more than 7,000 o. The offices. The company focuses on almost 70 districts, and it possesses a great deal of its regional franchises. These regional franchises look after the authorising of individual franchises. RE/MAX has depended on a stable agent network alongside the arrangement of fundamental assets to empower quality real estate benefit conveyance to the client.

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Kelly Williams Realty

Established in 1983 in Austin Texas, Keller Williams Realty is the most prominent real estate establishment as per the agent count in all of North America. The company is internationally renowned and toward the end of 2014, the agent count remained at 100,575. Likewise, it is the biggest exclusive real estate business in the US. It was established by Gary Keller and Joe Williams who had a humble beginning in a small office in Austin. Within two years, the company had made its name in Austin with a total of 72 authorised agents making it the biggest in the city. In the mid-90s, the financier spread its wings past Texas and opened an office in Oklahoma. It used the Austin model as a reference to take the new office to the best. The key to its quick achievement was pegged on its bonus sharing technique which was 70/30 split for agents.

As the years progressed, Keller Williams had opened up new divisions to benefit from different real estate niches like the luxury real estate sector and the commercialised real estate sector. Its first international expansion was in Vietnam in the year 2012. Afterwards, the organisation extended to Indonesia and Southern Africa. Today, it has offices in places like Austria, Switzerland, Germany, Turkey and the United Kingdom. The most recent establishment investment is in Dubai. This real estate giant is raising to go and as the second biggest in the United States, the organisation has its goals set considerably higher.

Keyes

Founded in the year 1926 and with over 90 years of experience, Keyes is one of the largest family-owned real estate business in Florida. It has over 3000 agents and associates. In the country itself, the company has around 35 offices situated and offering services in different localities. Since Keyes is one of the members of The Leading Real Estate Companies of the World, he is eligible for 4000 offices and around 120,000 agents in several countries. The company owes its success to the client devotion and the capacity to tailor unique requirements for commendable arrangements in the real estate. They offer an extensive exhibit of steady administrations to make the way toward owning perfect property simple.

Top 3 Affordable Cities to Live in the U.S.

House prices are up, and the supply is down across the United States, but buying a house is not as hard as you think it is. You just have to know where to look. Here are the top 3 cities where the real estate is easy on your pockets.

Buffalo, New York

Among urban areas with no less than one favourite game, Buffalo is known to be one of the most popular affordable places with an affordability index of 301.8. And keeping in mind that your automatic response may be “No doubt, however, it’s Buffalo!,” look closer as the city has completely turned onto a new leaf. Buffalo was the most extravagant city in America at the turn of the twentieth century, so it’s overflowing with historical destinations, similar to Colored Musicians Club, a tribute to the jazz culture that once permeated the roads and Frank Lloyd Wright’s Martin House Complex. The city is thinking of approaches to repurpose memorable structures, similar to the Hotel Henry or the Buffalo Riverworks, America’s first distillery inside a grain storehouse. Buffalo will genuinely leave you awestruck. What’s more, with such an affordable place to live in, there’ll be a lot of cash for fast winter getaways to Florida.

Population: 257,000

Median home price: $125,500

Annual income: $20,193

Lexington, Kentucky

If you love bourbon, you’re in luck! Kentucky is known to be from where 95% of the world’s bourbon comes from, which gives it the name ‘Distillery District’. Apart from Lexington being known as the City of Bourbon, it is also the second largest city in the state. Not long from now, Lexington will welcome Kentucky’s first food hall, which is called The Barn, since it sits in the focal point of Kentucky’s horse county. Pure breeds, tobacco cultivating, and University of Kentucky basketball are all as large as you’ve heard, yet the impact of the college and the alumni who’ve chosen to live here make it a standout amongst the most cosmopolitan mid-sized urban communities in America.

Population: 318,000

Median home price: $157,700

Annual income: $21,237

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Birmingham, Alabama

Alabama’s greatest city, Birmingham, is a moderate and a very underrated place to live. As compared to the hectic traffic in Atlanta, here you can bring a kayak down the Cahaba River – a waterway with a huge variety than the majority of California’s waterways combined. Birmingham is also known to have one of America’s most underrated food communities, with contributions far past its popular grill. Honest Stitt’s Highlands Bar and Grill is the city’s most popular spot, yet with the opening of the Pizitz Food Hall, Birmingham has shown America it’s as flexible in its food as it is a simple, enriching spot to call home.

Population: 212,000

Median home price: $182,800

Annual income: $21,410

5 Ways to Invest in Real Estate

Investing in Rental Properties

If you are looking for a way to enter real estate, house hacking is very suitable, don’t let the name make you feel sceptical, house hacking is the process of occupying your investment property by renting out rooms or renting out units in a multi-unit building. If this seems too much there is always the method of purchase entire properties and renting them out, but you have to make sure your rent can compensate your investment quickly, but without much compulsion towards the lease. One of the factors you have to take care of in the rental business is maintenance which should be done from your expenses.

Real Estate Investment Trust or REIT

REIT allows you to invest in real estate without the physical real estate; this is through investment trusts which acts like a mutual fund. These trusts are usually big companies which own spaces like, office, apartments, retail complexes and other commercial areas. These companies are preferred over the traditional investments as they provide high dividend amounts. Thus, this is usually pursued by retirees. Those who want to work from home and are done with the monthly income can invest in these trusts and reinvest their dividend back to the trust.

House Flipping

House Flipping is the process of purchasing an underpriced house and refurbish it by changing the cosmetics and repair some of the main components. There is a considerable risk involved in this process, that is the calculations required, so it is advised to have the assistance of someone experienced who can help you resolve if any crisis happens. If you hold the property for too long, it can give you running charges, unless you live in the purchased estate.

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Rent Rooms

This is one of the trending aspects of the real estate business due to its low investments and high returns. Renting rooms through apps like Airbnb can ensure that you don’t have long staying folks, and you can have the convenience of stopping the service whenever you need also. This method can be used if you want easy cash and you don’t mind another person staying in your room. There are a lot of risks involved in this as, inviting a mentally unstable individual or getting your things stolen, this is being combated by Airbnb and are strengthening their policies.

Use Online Platform

These are online platforms which help real estate developers connect to investors, these developers can construct buildings, and the investors get a periodic amount for their part in taking the risk and submitting a fee in the starting. The problem with this is that you need to have money to get money, and many of these platforms don’t lend.

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