Tag Archives: Property

Property Improvement with HUD 221D4 Loan

Home exteriorIf you are into land development or project development investment, then you should consider a multi-family residential unit. The reason a lot of investors and property owners consider the HUD 221d4 loan is the long-term aspects of the loan, the high percentage of the loan, and the non-recourse clause.

Non-Recourse

One of the soft commitment terms of the loan is the MIP, or mortgage insurance premium. What it means is that part of the owner’s payment goes to the mortgage insurance premium. This ensures that whatever happens to the property, the mortgage is paid.

On top of that, the non-recourse condition means that if in case the loan is not repaid, the lender can only take back the collateral for the loan. Even if the remaining loan balance is more than the value of the collateral, the lender cannot go after any other property.

40 Year Amortization

Single-family units seldom have more than 20-year mortgages. In the instance of the HUD 221D4 loan, the amortization period is an extra long 40 years. This allows the borrower to earn money from the property even as he is still paying the mortgage.

The aim of the loan facility is for the HUD to assure mortgage companies that they will pay if the owner defaults. It also provides for the possibility that the loan may not be repaid.

However, for the property owner, the 40-year amortization means that the monthly amortization will be much lower than any other kind of loan.

Loan Amount of Up to 83.3% of the Property Cost

The property owner can loan up to 83.3% of the property cost, which can be used to extend the property or to repair and improve it. Improving property or extending the property for multi-family units means that either more tenants can rent, or that the improvements can lead to increased rents. 83.5% of the property value is a huge amount which can lead to long-term improvements and repair.

The HUD 221D4 Loan is not for everyone. Only those who are going to invest in the long run development of property should avail of the loan.

Things That Homebuyers Look for in a Property

A couple buying new propertyThe south part of the metro has always been known for its laid-back atmosphere. That’s why it’s more popular for people who are just looking for a place to relax after the long busy day at work.

The south still has a lot of open spaces for future homeowners to choose from that are still near most of the major cities. According to property review site South Property Sale, Lancaster New City in Cavite is one such place.

Most people generally opt for a place based on its location and atmosphere. But what are the other things that new homeowners typically look for in a house?

Accessibility

Most people want to leave in a home that has access to public transportation. It has to be located in a place where they can easily get a jeepney, buses, or even LRT on their way to work.

Structure

Since Filipinos do enjoy the company of their friends and family (even the extended families), it’s nice to have a house that has enough space for a family gathering. A typical 3-bedroom home is a dream.

Affordability

With prices surging high, it’s a must to look for a house that fits your budget. Most people who are interested in getting a house are first-time home buyers. It means that they probably are in the middle-income bracket and wants to invest in a property.

Technology

Technology nowadays is a vital part of any environment, especially when it comes to security. It’s important to know that there are CCTV cameras located in various parts of the subdivision to feel that you’re safe.

Most homebuyers also consider the amenities included with their real estate property purchase. A developer who knows how to value your time with family, work and worship is something that you should always consider.

So, try to look for a subdivision or developer who has these things in mind when buying a house.

Why Investing in Japanese Real Estate is a Good Idea

Japan grade construction

Japan isn’t called the Land of the Rising Sun for nothing. In 2016, Japan hit a record of 24 million foreign visitors after its government encouraged more tourists for population growth. According to the Japan National Tourism Organization, the number increased by 21.8% from the year 2015.

While many people visit Japan every year, only a few people see the country as a place for investments. Real estate in Japan, however, is a hidden gem.

Affordability

Most businessmen remember the economic bubble of Japan in the late 1980s, when land prices rose by more than 300%. Real estate has improved a lot since then. Properties experienced more than a 50% drop from the highest price point until the year 2005. After the Great East Japan Earthquake of 2011, property values dropped.

Although the real estate of Japan has gone through a lot of ups and downs, it is doing well compared to most property markets in the world. Buildings and residential units in Tokyo have reached 60% of recovery – critics expect the value of Japanese properties to rise within the next 10 years. While the prices of buildings and house rentals in Japan are still at a minimum, experts from Sumitomo Realty & Development CO., Ltd. believe that today might be the best time to invest.

Quality Construction

We all know that Japan, situated on the Pacific Ring of Fire, is prone to earthquakes. It is a common misconception that because natural calamities come and go in and out of the country, it isn’t a viable location for investments.

What we aren’t familiar with, however, is the strict building codes and regulations given by the Japanese government to construction agencies. It is a must for infrastructure to withstand earthquakes. Almost none of the buildings built after the revision of the New Earthquake Resistance Building Standard Amendment (or Shin- Taishin) collapsed during the 2011 Great East Japan Earthquake.

Japan has always been an advantageous country, but its edge among fellow developing nations is that it always fulfils its promises.