Buying Vacation Home Properties: What You Need to Know

Ah, the vay-cay! We work for it, we live for it -- typically fifty weeks of the year. When the time finally rolls around, many Americans have their own slice of heaven in which to spend their well-deserved time off: a vacation home. Whether it's a cottage by the beach, a house in the mountains or a condo on the Las Vegas Strip, it begs you to unpack and relax.

If you're thinking about buying a vacation home, there are some things you should consider.

Buying a Vacation Home Means Managing two Mortgages

If you're not a member of the 1 percent, you may find that managing more than one mortgage is challenging. Your vacation home should be a haven, not a place that stresses you out because it costs so much every month. So, before considering the purchase, make sure that you can comfortably afford the extra payment every month.

"The basic rule of thumb is that your housing costs - including those for your primary home - should be a third of your overall income," cautions Jay Mastilak, senior vice president for PNC Investments. Housing costs, as most homeowners know, add up to more than a mortgage payment. You'll want to consider all of the costs listed below as part of the total cost of your vacation home.

Up-Front Costs of Buying a Vacation Home

Think back to when you purchased your primary residence. Remember the piece of paper they handed you at the closing table? You'll get another one when you close on the vacation home, itemizing just how much it cost to purchase the home, above and beyond the purchase price. Closing costs are a bear, as any homeowner will attest. These include:

• recording fees
• loan origination fees
• credit report fee
• title insurance premium
• private mortgage insurance
• points
• homeowner's insurance
• escrow deposits
• miscellaneous fees

Many of these expenses can be avoided if you pay cash for the purchase, according to the experts at the University of Rhode Island.

Ongoing Expenses of Owning a Vacation Home

Aside from a monthly mortgage, other costs you'll likely incur include:

• annual condo or homeowners association fees
• annual property taxes
• insurance
• landscaping costs
• maintenance costs
• security during the off-season
• travel costs
• utilities

Maintenance fees may be particularly high on homes that are very old, very large or have pools or other amenities that need regular attention.

Vacation House Rentals: Renting Your Second Home

One way to offset the cost of your second home is to find a tenant to rent your home while you're away.

If you want to let out for a substantial portion of the year, you'll have to take taxes into account. U.S.-based homeowners must adhere to a "14-day Rule" that states a vacation home can be rented out for up to two full weeks without being taxed. Any longer, and the rental income is subject to federal income tax.

If you are considering renting out the home, don't forget the obvious risks of opening your home to tenants, such as wear-and-tear or trouble collecting rent. And you'll want to calculate how long of a period you will need to rent the home to cover costs: Christine Hrib Karpinski, author of "How to Rent Vacation Properties by Owner," reports that in most places, vacation homes need to be rented out at least 15 weeks out of the year for a homeowner to break even.

Overall, one of the biggest considerations when purchasing a vacation home is determining if you can afford it. Then, consider how often you'll use the home and if it's feasible to rent it out when you aren't using it. If the numbers crunch, those 50 weeks of work become even more worth it.

Start browsing for home for sale in your area by visiting WheatonHomes4Sale.com now!

Smart Real Estate Investing for the New Rebound

A new real estate boom appears to be taking root and spreading across the U.S. especially in Wheaton and the surrounding areas, but is this really the investment opportunity of a lifetime or are we being set up for another exploding bubble?

What Would Warren Buffett Do?

Legendary investor Warren Buffett has been known to dominate the headlines and even made the cover of Time Magazine, so what's he talking about? Buffett's recent crusade has been focused on selling the benefits of real estate investing and pointing out an array of indicators which suggest a new, extended period of growth. This is a view being echoed around the country from veteran real estate agents who say, in certain markets, a seller's market is definitely here again.

The New Gold Rush is On ...

Those who can afford it are bidding on packages of 500 rental properties being offered by Fannie Mae, while others are racing to foreclosure auctions or bidding on as many short sales as they can.

Prices are as close to bottom as most can predict, and the fear is that soaring home prices (due to shrinking inventories), the potential evaporation of REO and short sale opportunities in the near future, and a potential rise in mortgage rates will cause the best opportunities to fade quickly.

In principal the strategy appears to be sound. After all, banks are now paying selected homeowners up to $35,000 to complete short sales and get out, making cutting deals a breeze for investors. But are we getting set up for another great fall?

Over-Confidence Breeds Dangerous Speculation: Are You Being Fooled?

It truly is a great time to invest in real estate for those who buy wisely, buy low and have the finances to do so. Unfortunately, the contagion of overconfidence already seems to be infecting the masses, luring novices into acquiring properties they believe they can flip like the investors on a reality TV show.

Stories are emerging of buyers overpaying for homes and multifamily apartment buildings and even a surge in investing in the junk subprime securities which were supposedly to blame for the whole housing crash six years ago. It seems some people will never learn or just enjoy gambling.

How to Invest Wisely in the New Rebound

When utilized wisely as part of a diverse portfolio, real estate investment can be the best move for most Americans to build wealth and subsidize their incomes in retirement. Between passive cash flow, appreciation as a hedge against inflation, and depreciation to offset taxes, it is incredibly attractive. However, there are a few rules which must be followed:

1. Define Your Goals

Before acquiring any property, ensure that you have defined your financial and personal goals and that your investment decisions are aligned with them.

2. Is Your Home the Worst Investment You can Make?

For many, purchasing a home can create forced savings and eventually become the best investment they ever make. However, your own residence and home equity should never be something to gamble with. It's where you live; your investments are for paying for that. Don't confuse the two.

3. Don't Invest in Real Estate Until You Are Financially Ready

Real estate is somewhere to put your money to work for you. No money down real estate investing is possible, and it can be a way to make money, but if you bite off more than you can chew and don't have any savings or reserves, you are asking for bankruptcy.

Make sure you are prepared for the worst, have separate personal savings which are sufficient to carry you through for several months, and have an exit strategy before you get in as well as a plan B and C.

Don't Believe the Hype!

There are many ways to invest in real estate and even more silver-tongued professional sales people to pitch them. Choose a solid strategy and be wary of distractions that can lead you into investing in all types of exotic locations and structures you don't really understand.

Note investing, construction, commercial properties and starting property management companies can all be exciting and profitable, but just as with stocks, it may be safer to invest in what you know.

Protecting Yourself Against Market Fluctuations

The most important thing for anyone considering real estate investment is to get educated. Don't worry, this doesn't mean having to go back to school or picking between tacky late-night infomercial products. However, it does mean learning more about the potential risks, how to protect against them, real estate cycles and the signs of negative fluctuations to watch for.

Buy-and-hold investing and creating a portfolio of rental properties is hot right now and has the potential to create incredible wealth over the long term. Just realize how long you may have to hold your investment and what the penalties could be if you need to cash out early in less buoyant times.

Visit WheatonHomes4Sale.com now to start browsing for homes for sale in your area for free!

DIY Jewelry Organization

Check out how to make this cute DIY jewelry organizer! I chose to hang mine on the side of my wardrobe and by using Command Picture Hanging Strips (pictured below) the removal and installation will be quick and mess free! Scroll down to see what you will need...

What you will need:

• Pre-finished white board or a piece of wood that you have lying around would work
• Black paint [and white if you need to finish the board yourself]
• Scotch Painters tape, the kind I used is pictured below
• 5 screw in hooks
• Package of 3M Command Large Picture Hanging Strips

How to make it:

1. Take any piece of wood you have lying around, if you don't have anything readily handy try heading to your local arts and crafts supply store and they may have pre-finished pieces of wood specifically designed for crafts! The piece I used was 18 inches by 4 inches.

2. Paint the entire piece white, you will want to use two coats of white. If you buy a piece of wood that is already pre-finished with white paint skip this step.

3. Use painters tape to cover the sections of the board that you want to remain white for your Chevron design. I used 1 inch wide tape, pictured below and it worked great. You can make the Chevron pattern as vertical or horizontal as you want.

4. Paint around the tape with black paint. Make sure your brush stroke are going in the same direction. Again you will want to do at least coats.

5. Remove the tape and let the board completely dry.

6.  Purchase any kind of cute screw in hooks to hang your jewelry. I used something similar to the hook pictured below but mine were painted white. I used 5 hooks and measure to space them out evenly across the board.

  

7. Apply your command picture hanging strips and attach wherever you want. I used three strips since I will be using this piece to hold heavier necklaces.

How to Reduce Indoor Air Pollutants in Your Home

When you think of indoor pollution, those grotesque, blown-up images of dust mites might come to mind. Tiny bugs living in our mattresses are only one source of pollution, however. Different types of indoor pollution include air and water pollutants, cleaning products and cosmetics.

Most of us think of our home as a haven - a safe place where we are protected from the rest of the world. But sometimes extra care needs to be taken to create a healthy home.

What Causes Indoor Air Pollution?

While we might be wary of smog and acid rain, outdoor pollutants probably don't affect us nearly as much as indoor pollutants do. Concentrations of indoor pollutants are 25 to 62 percent greater than outdoor levels. Because Americans spend 80 to 90 percent of their time indoors, they're at risk for serious health problems.

Sources of air pollution include wood-burning stoves, tobacco smoke, cooking and heating appliances, and vapors from building materials, and furniture. Paints, sealants, and other finishes can also be harmful. Radon, a radioactive gas that's released from inside the earth, is also a pollutant, and can be found concentrated in some basements.

Reducing Indoor Air Pollution

Many of the products we use every day generate indoor air pollution. One of the best ways to improve indoor air quality is to eliminate the sources of the pollution.

• Choose non-toxic furnishings, flooring, finishes and supplies.
• Eliminate toxic household cleaners from your home.
• Seal or enclose asbestos-coated sources.
• Provide adequate ventilation by opening windows or using fans.
• Switch to an environmentally-safe dry cleaner.
• Add some houseplants.
• Discourage smoking indoors.
• Have air ducts cleaned.
• Have lead-based paint professionally removed.
• Vent clothes dryers to outdoors.
• Remove water-damaged carpets.
• Test basements for radon gas.

Natural Pollutants

Biological contaminants are another type of pollutant that affects the indoor environment. Pet dander, dust mites and other microorganisms that occur naturally can settle in carpets and other fabrics. Bacteria, molds, mildew and insect or rodent droppings are also dangerous. These allergens can trigger allergies and sometimes lead to serious illnesses such as asthma in some people.

Use flooring options like wood, cork, tile, stone or bamboo to reduce the number of allergens in the home. These flooring materials don't emit fumes or harbor microorganisms and are easier to keep clean than carpeting.

Air purifiers and mechanical ventilation systems can help keep indoor air healthy. They can reduce levels of humidity, which creates a breeding ground for bacteria, mold and mildew. The Environmental Protection Agency recommends keeping humidity levels below 30 to 50 percent.

Check out WheatonHomes4Sale.com to browse official listing information of homes listed for sale in your area or to find out how much your home is worth.

Low Maintenance Privacy Landscaping

Privacy. Its a hot commodity in a world where we're pushed ever closer in proximity to one another.  It almost seems like a diabolical developers' cruel joke to see how many houses they can cram onto a couple of acres. 

You don't have to put up with feeling like you live in a fishbowl. There are a number of creative and low maintenance landscaping techniques that, in some cases, provide almost-instant privacy. If you do your homework before choosing landscaping materials, you can get the solitude you crave and keep the work on it to a minimum.

Baby Steps to Privacy

One of the first things you need to determine is if your Homeowners' Association has landscaping rules. Many of them do, so dig out the paperwork and pore over the CC&Rs to figure out what you can and can't do with your property.

Next, determine the amount of privacy you desire. Dense privets block most prying eyes, whereas a mix of trees and tall perennials provide a lighter touch and look more natural.

The size of the space you need to fill plays a large role in what to plant, so take measurements before heading off to the nursery.

Finally, make sure that the plants you purchase are suited to your growing zone. The United States Department of Agriculture provides a Plant Hardiness Zone Map based on the lowest temperature in a region.

In some areas of the country, such as California and Nevada, homeowners can also consult Sunset magazine's climate zones. Unlike the USDA map, Sunset uses rainfall, high and low temperatures, the length of the growing season, humidity and wind to determine plant hardiness zones.

Finally, you're always safe going with native plants that are adapted to your region and typically require less maintenance than the non-natives. Many larger cities have native plant societies that you can consult for ideas on what to use in your privacy landscape plan.

Landscaping Narrow Side Yards

Newer homes in subdivisions across the country tend to have tiny slices of vacant property between houses. There may or may not be a fence. If you don't like looking at your neighbor as you wash the dishes, choose some fast-growing columnar trees to fill the space.

Italian cypress is an ideal plant for this situation. It grows quickly (up to 3 feet per year), remains slender and requires little maintenance. The best time to plant Italian cypress is in the spring, unless you live in a warm climate. In that case, plant anytime. For a good, dense screen, plant the trees 5 to 6 feet apart.

Privacy Landscaping for Front Yards

If the front of your house is open to the world, you have options to provide privacy. Privet hedges are commonly used to screen out prying eyes, but they require a good deal of trimming and pruning to keep them in shape. Instead, consider planting evergreen shrubs and trees. If you must use deciduous plants, the experts at Colorado State University suggest you choose those with lots of stems and branches to help provide a privacy screen even after the plant loses its foliage.

Plant the trees closer to the house with the shrubs in front. To make a more natural vignette, throw some low maintenance perennials in front of the shrubs. Ideal plant choices, according to Richard Jauron of Iowa State University's Department of Horticulture, include butterfly weed or salvia for sunny locations and hosta, ferns or bleeding heart for shady spots.

Blocking the View From Above

When your neighbor has a bird's-eye view into the home or onto your deck or patio, privacy landscaping becomes a bit trickier. Large deciduous shade trees with broad spreading canopies should provide enough cover.

An arbor, or overhead latticework, allows sunshine to penetrate but blocks most of what the neighbors might be able to see. For better coverage and to soften the hard lines of the structure, plant a vine at the base and allow it to grow up and over it. Quick-growing vines that require little care include clematis, ivy and trumpet vine.

While it may be true that good fences make good neighbors, privacy fences make good neighbors disappear – at least from sight. And that is a good thing.

Elmhurst IL Foreclosure List

View all of the foreclosures listed for sale in Elmhurst by clicking the image above or simply click here. Not looking in Elmhurst? Simply visit WheatonHomes4Sale.com and search throughout Chicago land, the suburbs of NW Illinois and parts of Wisconsin and Indiana. Service and data provided by Katie Oakes with Keller Williams Premiere Properties.

How to Buy Vacant Land

Click here to view all Wheaton and Glen Ellyn Land/Acreage For Sale

The decision to actually purchase real estate is just the first of many decisions to come. When buying a home you need to decide on the what, where, when and how. Decisions to make include finding the right neighborhood, the right house, the right loan, real estate agent and home inspector. The process of buying land demands answers to the same questions, plus a lot more.

Do you want raw land or vacant land, or do you even know the difference? Raw land, since it typically lacks services, such as water, power and sewer, is typically more expensive to build on. Vacant land or vacant lots, however, still require that you perform plenty of due diligence: easements, zoning, land-use restrictions and utilities, to name a few. All that "stuff" that the developer did prior to building the homes you'll find in a subdivision, is now up to you.

Then there is the cost to build a home, if that is your plan. The cost to build will vary, according to several factors, with the following three at the top of the list:

• House design
• Quality
• Price of materials

According to C.J. Hughes, of This Old House magazine, the cost of the land and the cost to prepare it for construction shouldn't make up more than one-fourth the total cost of the construction budget. Just how will you determine that budget? Use anonline calculator to get a rough estimate of construction costs in your area.

Like most real estate transactions, if you're a property virgin, the entire process may seem like information overload. Let's break it down into bite-sized chunks.

Visit Appropriate City and County Offices

Government agencies offer a wealth of information that will speed you on your way in your due diligence. Here are a few places to start:

Planning Department

Look at the long-range land use plan to determine if anything unpleasant is in the works, such as a landfill, prison, electrical substation or a poultry or pig farm if odors bother you. Check traffic counts and ask about any upcoming road improvements. Your country property may be slated as highway-front property, so don't skip this step.

One of the most critical pieces of information will be the zoning. This will, among other things, let you know if you can even build on the land. Also, ask if the land is in a recorded subdivision as this will bear on how you can use your land.

Does the parcel have municipal water and sewage? If not, you'll need to factor in the cost of installing these items when determining the total cost of construction. Check with the health department about local sewer and water codes.

Access to the parcel is crucial. Don't assume any road is public – ask.

Assessor's Office

Here is where you'll find tax records, flood-zone boundaries and the proximity of any wetlands or other restricted use areas. You may find more information about easements and whether or not you'll require one to gain access to the property and whether someone else holds one over the property.

Financing Land

The most unpopular part of any real estate transaction has to be obtaining financing. Fortunately, you'll find a lot more owner-financing deals in the land arena than that of the single-family residence.

Other ways to finance the land purchase include obtaining a home equity loan on your current house, community banks and the government. The U.S. Department of Agriculture (USDA) offers loans for vacant land, provided you are building a single-family residence on the land right away, according to Elias Askins with the USDA Rural Development office in Clark County, Nev.

If you're stumped about where to go for financing, ask your real estate agent or the title insurance reps in your area.

Choose a Qualified Real Estate Agent

When it comes to choosing a real estate agent, interviewing several is critical when you want to purchase land. The process is entirely different than buying a single-family home and requires a different set of real estate skills and knowledge.

Look for an agent who specializes in and has lots of experience with selling land. A bonus is finding an agent with construction credentials; he or she will be better able to counsel you about the building aspect of the land purchase.

The most important thing to remember during the purchase process is to not fall in love at first site with any parcel. You never know what lurks behind the public records until you peruse them, so, no matter how ideal a property seems, try to remain emotionally detached while lot shopping.

The Wheaton and Glen Ellyn area currently have 76 pieces of land for sale. To view land for sale in these and other areas, click on the image below or head to WheatonHomes4Sale.com.