Category Archives: Home Buying

Safeguarding Your Property

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Your financial wealth is not determined solely by the amount of money you have in your savings account; the value of the assets you have accumulated over time is another factor. Many people believe that purchasing a home would be an important acquisition that would boost their net worth.

Owning a property can provide you with a physical sanctuary that will give you the peace of mind to excel in your other financial endeavours. Knowing that you and your family will always have a place to call home can also give you the impetus to work harder to protect this important legacy.

Whether you direct your money into the ownership of property, place funds in formal investment options, or invest your resources in operating your own business, it is important to consider all the possible challenges that could arise which could jeopardise the preservation of your wealth. Continue reading Safeguarding Your Property →

To Own, or Not To Own?

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Purchasing a home is one of the most important spending decisions that people will make in their lifetime. While having a piece of property with your name on the title may be a cherished dream that you would like to achieve, it can also be an intimidating and uncertain financial move to make.

If you are trying to choose between buying your own home and continuing to pay a landlord, you can’t just compare the cost of renting with your expected mortgage payment. Let’s take a look at some of the various factors that you need to consider if you are thinking of taking this big step.

Amount available to invest

Acquiring a property in Jamaica can be a costly affair, so you need to be aware of the full amount of money you will need to spend before you can get your name on the title. Most people aim to secure the deposit of between 10 to 15 per cent, but there are other costs that will be incurred. Continue reading To Own, or Not To Own? →

Seek and You Will Find

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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.” — Matthew 7:7

Some persons think that if they have clear financial goals which they would like to accomplish, then they should not experience too many obstacles en route to success. They believe that if they come upon challenges which make the process difficult, then their goals were not destined to be realised.

There will be occasions when no matter how desperately you wish for your dream to come true, it will be highly unlikely to occur. This could be the case if you don’t convert your dream into a smart goal; with specific, measurable, actionable, relevant and time-based objectives that you can apply.

For example, if every month when you pay your landlord, you declare, “One day I’m going to turn the key to my own door,” but you never put plans in place for this desire to become real, then don’t expect a miraculous event to eventually bestow you with the home of your dreams. Continue reading Seek and You Will Find →

Home Buying Risks

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There are few occasions that will bring such an overwhelming sense of satisfaction and fulfillment as purchasing your own home. For most persons, it is the realisation of a lifetime dream; and it often heralds their hope for a more prosperous financial future.

While the prospect of buying a home may trigger many emotional responses, it is important to remember that it is a major financial investment as well. If you’re pursuing home ownership, you must also incorporate some rational and prudent decision-making steps in the process.

When investing money, most people will focus on the plus side of the equation; they concentrate on what they have to gain from making the transaction. However, when you commit your funds to a venture, there is always the possibility that you could receive an undesired or adverse outcome. Continue reading Home Buying Risks →

Home Ownership Reality Check

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Many people will express that one of their major financial dreams is to purchase their own home. It seems that the desire for home ownership runs deep in their minds, hearts and souls, as owning an abode gives a sense of security that few other investments can provide.

However, despite the universal appeal of home ownership, a relatively small percentage of Jamaicans ever accomplish this worthwhile objective. Although the desire to buy a home remains firmly lodged on their wish list, too few are actually able to convert this dream into reality.

The elusive home dream

There are various reasons why home acquisition can be challenging for most Jamaicans. Firstly, the adverse economic situation precludes many consumers from being able to commit enough of their money to save for this goal. Every dollar that they earn is needed to meet basic expenses. Continue reading Home Ownership Reality Check →

Smart Real Estate Investing

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In challenging times there are always tremendous opportunities for smart investors to make profit. Despite the fact that we are in the middle of a reported recession, there are several ways to earn good returns from investing in Jamaica.

Right now, money market instruments are yielding attractive interest rates; government global bonds can be bought at low prices; stocks in quality companies are trading way below their true values; and buyers have the upper hand in the real estate market.

While you can get expert guidance on investing in the money market, bonds and stocks from several licensed financial advisors, it’s not so easy to find out how to win in the real estate market. Continue reading Smart Real Estate Investing →

Homeownership Challenges

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According to recent news reports, mortgage interest rates are set to rise drastically as a result of the interest rate increases on Bank of Jamaica (BOJ) securities. Financial institutions will have to raise the interest rates paid on deposits in line with market rates, and therefore they will be forced to charge more for loans.

How will these developments affect Jamaica’s housing market? According to real estate industry experts, increases in mortgage costs will have a negative impact on both existing and prospective home owners.

BOJ data revealed that up to June 2008, the amount of mortgage loans in arrears for three months and more had risen by some 71 per cent over the previous year. Delinquency rates are expected to grow even more as the cost of homeownership increases.

In addition, most consumers’ income levels are not moving up to match these increased finance costs, so many hopeful homeowners may not have the cash flow required to qualify for a mortgage. Continue reading Homeownership Challenges →

Buying a home? Don’t buy more than you can afford!

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Owning a home is one of the biggest dreams for most persons. They envision the time when they can get rid of their landlords, make their own home décor choices, and stop worrying about home security.

However, owning a home can become more like a nightmare if you bite off more home than you can chew. It’s important to match your home ownership plans with what you can truly afford.

The mortgage meltdown in the United States has had far-reaching implications on the global financial marketplace. While Americans face thousands of devastating foreclosures and some stunning bank crashes, the rest of the world is reeling from the effects of the reduction in credit availability and the fall in the American consumers’ spending power. Continue reading Buying a home? Don’t buy more than you can afford! →

Qualifying for a Mortgage

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“I’m desperate to buy a home as I’m tired of having to deal with landlords. I have some money saved up for the deposit and I’m going to go to a mortgage company for a loan. I’m a little confused as to the process involved in getting a mortgage. What can I expect from the process?”

Congratulations on making a move towards owning your own home. Having a deposit amount in hand is only the first step in achieving home ownership. The determining factor between getting your home and continuing to pay rent is- will you be able to get a mortgage?

Going to a mortgage interview can be a nerve-racking experience. You’ve finally found a place that you really want, you’ve agreed to pay your deposit to the vendor, and now you face the people who will decide whether or not you can qualify for the loan you need to close the deal. This can definitely rank high on the list of life’s most stressful experiences! Continue reading Qualifying for a Mortgage →

Can You Afford To Buy A Home?

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“I’ve been saving towards the deposit on a house for a couple of years. Given the rising real estate prices, I think I should try to buy a home now, but I’m not sure if I can manage the mortgage payments. How can I know if I’m really able to afford to purchase a home?”

The real estate market boom has led to rapidly increasing housing prices and consequently, diminishing hopes of acquiring dream homes. The temptation for some anxious homeowners-in-waiting is to buy quickly before prices get higher, without knowing if their financial position really allows them to afford it.

Last week we looked at the pros and cons of buying a home versus renting a property. If you’ve decided that owning your own home is an important goal, you have to examine your finances to ensure that you’ll be able to meet this major commitment.

The first thing to consider is: what are all the costs involved in buying a home? Continue reading Can You Afford To Buy A Home? →