Tips on Choosing a Mortgage

Availing a mortgage can be confusing as there are so many options available today. It is important to make an informed choice as any mortgage is not a “one day” matter. It will remain with you for a long time at least 5-10 or more years. While mortgages enable you to buy your dream home or commercial property instantly it is a debt and needs to be paid back with interest. Since a mortgage is a long term financial commitment you need to consider aspects like income, expenditure, expanding family needs, and more before going right ahead and buying a home you really cannot afford. If you find yourself in apposition of confusion, seek the help of an independent financial advisor. Try not to consult a real estate agent or loan officer at the bank as it is in their interest for you to buy a property or avail a loan. A professional financial consultant will be able to sit down with you and study your case and then make sensible and practical recommendations based on aspects like income, future prospects and so on. According to experts it is important to:

a. Know what kinds of mortgages are available. Study the various options with care. Know whether to select a fixed rate mortgage or adjustable rate mortgage.

b. Know your needs and based on that decide which type of mortgage you don’t need.

c. Next weigh the pros and cons of the remaining types and then choose the mortgage that is ideal for you.

When selecting a mortgage the most important things are:

1. Determine how much you can afford to pay towards the principle and interest each month. Remember you must have enough money left over to meet daily needs. Be practical and create an income/expenditure chart. And in your planning be sure to include escalation in expenses say for example a child will be due to start going to college in 3-4 years and so on.

2. Always make the effort of doing a comparison of lending rates and mortgage packages. There are online comparison tools that you can use.

3. Select a reputed and dependable mortgage company. Do a background check on the company you intend to use and make sure there are no complaints against them. Try and avail a mortgage from an institution you are already familiar with, for instance your own bank or credit union. Find out if the pace you work in has a tie up with any bank or financial institution.

4. Work out the loan tenure intelligently. Depending on the interest rate payable if you chose a long tenure you will pay out considerable amounts as interest. In case you find it difficult ask a loan officer to help you decide the tenure.

5. Always read the contract/agreement carefully. And if the mortgage has insurance cover avail that. This protects your family in case of death or any other problems. A mortgage is a long term commitment and non payment or defaulting can mean loosing your home. So a mortgage must always be selected with care.

Dallas Commercial Real Estate Market Does A Rebound

Dallas City in Texas continues to experience steady growth in its real estate industry notably on the commercial side. This is not really a wonder as Dallas is a large city which accommodates several huge industries consisting of the petroleum, transportation, banking, information technology and telecommunications sectors. But despite the growing economy, Dallas remains to be among the most affordable cities in the U.S., according to Forbes.

The Dallas Texas real estate industry has also maintained its momentum since it began experiencing its booming days back in the 1980s. The Dallas commercial real estate including the big buildings and skyscrapers was a major growth factor. In addition, the Dallas metroplex accommodates numerous high-end shopping centers more than that of any other city or state in the U.S.

Experts reveal that the commercial real estate market in Dallas is in great condition compared to the residential properties. In terms of foreclosure, the percentage of Dallas office space, apartment, industrial and retail buildings is very small. This is due to the fact that commercial companies almost always have the financial resources to carry out their expansion and construction projects.

Dallas is seen to continue being a commercial real estate hub in the many years to come. Currently, new construction projects of condos and townhouses are widespread around this booming city. The other good news is that many of the office spaces previously available in Dallas have already been occupied or pre-leased. The central business district of the city has reduced its office vacancy rate to 24 percent as of end of September 2007.

The year 2007 has proved to be favorable for the Dallas commercial real estate sector. Latest reports from Cushman & Wakefield say office tenants that have been expanding and relocating have leased 1.5 million square feet more of office space in the Dallas-Fort Worth area in the first half of the year. The third quarter net leasing has also soared nearly 90 percent from totals in mid-2007. A recent report by Delta Associates showed that Dallas-Fort Worth is seen to accommodate an average of 4.8 million square feet of office space each year until 2010.

As for construction, an estimated 6.9 million square feet of office space is now being built in Dallas-Fort Worth as of the middle of 2007 and this is bigger than in 2006. Of the estimated office space being constructed, more than 40 percent is already pre-leased. Rents have also risen to seven percent from the 2006 rates. Third quarter figures show that office rents averaged $19.42 per square foot while rents for medical office space rose 12 percent to $24.4 percent.

With all these positive developments going on, the future of Dallas commercial real estate is indeed looking bright. Many real estate investment firms are seeing a low vacancy rate and substantial rent gains this 2007. Developers are also projected to provide 2.6 million square feet of office space by the end of the year while building owners are expected to ask for higher rents as a result of lower vacancy. The reduction in vacancies is being attributed to the surge in employment by 3.2 percent covering more than 900,000 jobs by year end.

Premium Housing in Bangalore Real Estate

Residential real estate in Bangalore has entered quite an interesting phase. On one side, the demand for luxury housing has been picking up well in the city - internationally famous as the cyber hub of India. And on the other hand, budget housing in Bangalore is witnessing slowdown.

The number of transactions in the residential property, mostly apartments, priced between 25 to 40 lacs has come down, as per property brokers. According to Mahesh Laxman, Regional Director Jones Lang LaSalle-Meghraj, Bangalore- “It is the premium housing priced at Rs 65 lakh plus which continues to be transacted by end user in Bangalore.”

Describing the end user, Laxman says that the end user is typically “an actual buyer, in age between 32 and 50, belonging to the high income category and senior management in software or multinational companies. Even now the current off-take of residential property in Bangalore is in the range of 50-60,000 units a year. “Meanwhile a bouquet of new residential projects are coming up in Bangalore. “Most of the new projects carry large-size 3-4 BHK apartments, located at prime areas with lifestyle amenities like swimming pool, kids playing area, car parking, theatre, open space for leisure activities, health center and commercial market for the daily needs,” Mr Kareem of Prime Property Consultant informed.

It simply indicates that the real estate developers have identified the demand for higher-end housing in Bangalore and their planning is in line with the end user demands. Meanwhile, industry experts point out that the current slowdown in the segment of budget-housing is a partial one and the overall mood of real estate sector in Bangalore will be upbeat in the coming months. Karnataka’s new industrial policy has already created a conducive environment for investment in the state and the government has targeted 20% industrial growth in the next five years. Bangalore Real Estate sector is poised to grow on the back of this industrial growth. JLL-Meghraj’ Laxman feels that the coming of SEZs will spin off residential demand across all categories especially middle budget housing as the employees will need spaces to live in.”