Mortgage Tips!

 3 Important Factors

When buying a home for the first time, a mortgage can seem like a daunting thing that you don't understand. Here is some basic mortgage terminology that you need to know in order to make an informed decision.

• Term - A mortgage term is the length of time you have to pay off your loan. It could be anywhere from 10 years to 30 years. Like any loan, the longer you have to pay off your mortgage, the lower the payments will be. An important mortgage tip - in some cases, the shorter the term, the lower the interest rate.
• Rate - The "rate" is the interest rate, which basically defines how much you will be paying the bank to borrow money from them. The interest rate offered to you is dependent on your credit rating, how much money you are able to put down, how much money you make and the value of the home you're buying. Rates can also change depending on the loan program.
• Cost - Costs typically refer to closing costs, which are a part of every mortgage. You may see offers for "No Closing Costs" but these programs are rare. If you get a no closing cost loan, it usually means the mortgage company is making a large enough commission on your loan to cover the closing costs for you. Closing costs usually include an appraisal, recording fees on documents at the registry or deeds, attorney or notary fees and the like. Watch carefully for junk fees!

Choosing a Mortgage Term

The term of your mortgage is an important factor to consider when choosing your mortgage program. Obviously, the longer the term, the lower the payments - but low payments aren't on every person's mind. In fact, some people prefer to make larger payments towards their home loan because it will be paid off more quickly and because they are putting their money into an appreciating asset. Additionally, if you plan to rent or lease your property or a unit in your property, you'll make more money the faster you pay down your mortgage. The moral of the story is that larger payments are better as long as you can afford them. This doesn't mean you can't get a 30 year fixed mortgage and just be disciplined enough to make an extra payment or two throughout the year, but it does mean that the more money you put into your home, the better off you'll be.

Advantages to Using Mortgage Brokers

Finding the right home may seem like the hard part of a real estate transaction, but in reality, getting the best financing can be much harder. This is partially because we have so many options nowadays for mortgage loans and so many places to find them. A mortgage broker or your local bank can often lay out your options clearly. They will be armed with what you want in terms of loan term, ideal rate, targeted monthly payments and the like. If you're smart, you talk to them before you decide on your home so you really know your price range. Once you have your options from your local folks, go online and shop around. Some mortgage websites have so many lender partnerships that they are bound to find you a cheaper rate, shorter term or more competitive option - they just have greater resources! Don't feel bad either - this is your financial future and if your local folks can't offer the best mortgage options - that's life.

Adjustable Mortgages – Risk vs. Reward

Why do people take out ARM loans anyway? An ARM is an Adjustable Rate Mortgage and these can suit many people perfectly. The idea is that you have a term where your interest rate is fixed. This term can be as short as one month and as high as ten years. ARM loans are ideal for starter homes or condos, where you plan only to stay for 3-10 years and then you plan to sell. They can also be great for getting into the home of your dreams with a slightly lower payment. The risk is that when you refinance your mortgage, the interest rates may be higher, so although you are getting a great deal in the short term, your long term interests are not as clear. If you are in the financial industry and you follow interest rates, an adjustable mortgage is probably a great plan. The key is knowing when to refinance into a fixed rate mortgage to protect your long term property interests.

Paying Off Your Mortgage Loan Early

When you buy your first home and you see that 30 year term, it seems like you'll be paying for your home forever. There are ways to shorten your mortgage term without refinancing.

1. Pay a little extra every month towards your principal. You can usually add a dollar amount that specifically goes towards that and even if you can only afford $20.00, send it in. That is an extra $240.00 towards your principal each year.
2. Make one extra full payment a year. By doing this simple thing, you reduce your loan term by YEARS.
3. Don't spend money on frivolities. If you have extra cash on hand, invest it in your equity or in home improvements - especially the kitchen and bathrooms which will increase your home's value.

Prepayment Penalties on Adjustable Rate Mortgages

No matter which mortgage you choose, make sure you ask about prepayment. If you want to refinance down the road, you don't want the obstacle of a prepayment penalty to get in your way. Prepayment penalties are not the norm - they are usually associated with higher risk loans with higher interest rates. Basically, if you decide to pay off the loan, they will demand an amount of money as a penalty. This can be a fixed amount or a percentage of your loan. No matter which program your mortgage broker or mortgage website is suggesting, ask about prepayment penalties before you sign. This can mean thousands of dollars in savings down the line.

Funding the Costs of Your Reverse Mortgage

Many older people are taking advantage of reverse mortgages to help with living expenses. If your house is paid for, this may be a viable option for you. A reverse mortgage means you are taking a monthly draw from the equity in your home. It can mean the difference between being able to stay in your home as you get older, or having to sell it and move someplace else. A great mortgage tip - ask that your closing costs be paid out of your loan proceeds. This means you can secure a reverse mortgage for no out of pocket costs.

Choosing an Interest Only Mortgage Option

If you are looking to make a significantly lower payment for the first several years of your mortgage, an interest only mortgage may be the right program for you. The program is just as it sounds. You will be making payments only on the accruing interest of your home. You don't have to make payments towards your principal, which is why the payments stay so low. If you're smart, you won't use this program as an opportunity to buy a lot more house than you can afford. Calculate the affordability of the home according to making payments towards both the interest and the principal so that when the loan requires those payments, you are prepared. Don't be put off by this though - an interest only mortgage program can be great for select home buyers so talk to your mortgage broker about the option.

Choosing a Mortgage Broker

Today, finding a mortgage broker is easier than ever. Because of the internet, you are no longer forced to use local mortgage brokers - you can find great mortgage brokers and lenders on the internet that can offer better programs for better rates than ever. The key to choosing a mortgage broker is comfort. Are you comfortable with the person? Do they make you feel confident that they are guiding you to the right mortgage option? Remember, this is not a popularity contest. People often make buying decisions based on whether they like the person with whom they are dealing. Let that go and play the numbers game with your mortgage.

The Fastest Way to Obtain a Mortgage Loan

Getting a mortgage online has never been easier and offers many benefits. Online mortgage brokers usually have access to more lenders and programs and they can turn things around quickly. Because credit checks, loan applications and income verification have been automated so thoroughly, an online mortgage company can help you if you have a short closing date or need a fast refinance. Start with the major search engines when you want to find mortgage broker options. Better yet, try to find online reviews or get a referral. Make sure the site you choose has the Better Business Bureau seal and all of the information security precautions possible.

Things to Know About Your Adjustable Rate Mortgage

When you choose an ARM loan, make sure you know some of the following facts, so that you are prepared when your fixed rate term ends.

1. When will your rate adjust the first time, and by how much? This could be any term from 1 month to 7 years, so make sure you know the date and you are prepared for the adjustment.
2. Be aware that the rate of your ARM will not shift only once. It's likely to shift regularly according to any changes in interest rates. Your rate can be determined by the US Treasury or the LIBOR index, do familiarize yourself with the right index and follow interest rates so you are well educated.
3. Be aware of your refinancing options. ARM loans can be great to start off in a home or condo, but you can easily refinance to a fixed rate loan. The key is to get a great interest rate on your fixed loan, so watch rates, keep in contact with your mortgage broker and make the move before you get into trouble with your ARM loan.

Getting a 'Flexible' Interest Only Mortgage

Interest only mortgage loans can be a smart option for you if you are self disciplined. They offer a flexible payment schedule where you are only required to make a payment towards the interest of your loan, but you also have the option to pay toward the principal. In most cases, your interest only mortgage coupon will even lay out pre-calculated options for payments towards principal. If you have an interest only loan, make it work for you - be disciplined and pay off as much as you can. By all means, take advantage of the payment flexibility when you need to, but put money towards your equity whenever possible.

Buying an Affordable House: Top Tips

Finding the right door into the housing market

Are you experiencing sticker shock? Even when the market is down, the number of zeros on a house's price tag makes buying a challenge for most people. Still, with some effort and patience, there are ways to find a good house at a comparatively reasonable price. Here are some proven strategies, from the likely to the "don't try this if it's your first time buying a house:"

Buy a stigmatized or overlooked property. In any market, a few houses get passed over, sometimes because they were simply overpriced to begin with and then got forgotten by buyers, other times because there's something wrong with them -- maybe they smell like cigarette smoke, or were the site of a violent crime. If you can live with or correct the problem and can negotiate a lower price, you may have yourself a deal.

Buy a fixer-upper, cheap. Houses that need work always sell for less, although you'll need to estimate the repair costs carefully to make sure it's a true bargain. Fixer-uppers that need only cosmetic work tend  to get snapped up quickly. Get a contractor to check the place out if there's any chance you'll do a major remodel or it will need foundation or structural work.

Buy a small house with remodeling potential, and add on later. Sometimes a house that suits your needs now can be remodeled later if your situation changes. Before buying, get a contractor's estimate and check local zoning laws to be sure your dreams are feasible.

Buy a shared equity house, pooling resources with someone other than a spouse or partner. This may mean either having an outside person invest in your house and gain a share of the profits when you sell, or simply sharing a purchase with someone who will live with you. It's a trend!  

Rent out a room or two in the house, or buy a duplex, triplex, or house with a rentable in-law unit. Depending on your local rental market, the added income from rent may offset a good portion of your Mortgage. And talk to your accountant: Renting out property is a sort of business, so you'll need to add a Schedule E to your taxes. On the plus side, you can deduct a prorated portion of your home expenses and depreciation from the rental income.

Buy a house at an estate or probate sale. A house that belonged to someone who passed away can be a bargain, usually because the deceased person's family members are eager to get the cash out of the property. However, you may have to attend some court proceedings.

Buy a house subject to foreclosure (when a homeowner defaults on the mortgage). Houses subject to foreclosure or that have been foreclosed on are often cheaper because the homeowner needs to sell quickly, or the bank has stepped in to sell the property, possibly at auction. However, it's a risky way to buy a house, because you can't always do physical inspections, and the current owner may have a right to pay off the debts and reclaim the house within a certain time. For more information, read Nolo's article, Buying a Foreclosed Home: Your Way Into the Real Estate Market?

Buy a house at an auction. House auctions, both live and online, are gaining in popularity. Just make sure you're given an opportunity to inspect what you're buying before you get caught up in auction fever.
For the details on all of these strategies, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.

by: Ilona Bray, J.D.

Bank of Uganda to monitor real estate sector, amend financial regulations

The assistant director financial stability at the central bank, Robert Mwebazize has revealed the banks plan to amend the Financial Institutions Act 2004 in a bid to create a regulatory frame work to monitor micro finance deposit institutions (MDI) just like other financial institutions.

Mwebabazize states that the proposed changes were forwarded to the finance ministry for thorough cross checks which later will be sent to parliament for debate

The amendments seek to have MDIs in the first tire elevate to the second tire and have the brand of the word bank on them and act on behalf of BOU in delivering financial services to the public.

While producing the annual supervision and financial stability report of the year end 2010, the BOU reveals that all financial institutions in the country are of sound  economic stability.

He also adds that BOU together with UBOS are to start a system of evaluating the real estate sectors as a way to monitor the economy more effectively.

By Isaac Senabulya, Ultimate Media

Need a Loan? Think Twice About Using Your Home as Collateral

If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully. If you can't make the required payments, you could lose your home as well as the equity you've built up. That's why it's important not to let anyone talk you into using your home to borrow money you may not be able to afford to pay back. Not all loans or lenders are created equal. Some unscrupulous lenders target older or low-income homeowners and those with credit problems. These lenders may offer loans based on the equity in your home, not on your ability to repay the loan. High interest rates and credit costs can make it very expensive to borrow money, even if you use your home as collateral.
Talk to an attorney, financial advisor, or someone else you trust before you make any decisions about borrowing money. Non-profit credit and housing counseling services also can be useful in helping you manage your credit and make smart decisions about loans.

Early Warning Signs Avoid any lender who: tells you to falsify information on the loan application. For example, stay away from a lender who tells you to say that your income is higher than it is. pressures you into applying for a loan or applying for more money than you need. pressures you into accepting monthly payments you can't make or could have trouble making. fails to provide required loan disclosures or tells you not to read them. misrepresents the kind of credit you're getting, like calling a one-time loan a line of credit. promises one set of terms when you apply, and gives you another set of terms to sign — with no legitimate explanation for the change. tells you to sign blank forms — and says they'll fill in the blanks later. says you can't have copies of the documents that you've signed.

You can take some steps to protect your home and the equity you've built up in it. Here's how.

1. Shop Around. Costs can vary greatly.

Contact several lenders — including banks, savings and loans, credit unions, and mortgage companies. Ask each lender about the best loan you would qualify for. Compare:

• The annual percentage rate (APR). The APR is the single most important thing to compare when you shop for a loan. It takes into account not only the interest rate, but also points (one point equals one percent of the loan amount), mortgage broker fees, and certain other credit charges the lender requires the borrower to pay, expressed as a yearly rate. Generally, the lower the APR, the lower the cost of your loan. Ask if the APR is fixed or adjustable — that is, will it change? If so, how often and how much?
• Points and fees. Ask about points and other fees that you'll be charged. These charges may not be refundable if you refinance or pay off the loan early. And if you refinance, you may pay more points. Points usually are paid in cash at closing, but may be financed. If you finance the points, you'll have to pay additional interest, increasing the total cost of your loan.
• The term of the loan. How many years will you make payments on the loan? If you're getting a home equity loan that consolidates credit card debt and other shorter-term loans, remember that the new loan may require you to make payments for a longer time.
• The monthly payment. What's the amount? Will it stay the same or change? Find out if your monthly payment will include escrows for taxes and insurance.
• Balloon payments. This is a large payment usually at the end of the loan term, often after a series of lower monthly payments. When the balloon payment is due, you must come up with the money. If you can't, you may need another loan, which means new closing costs, as well as points and fees.
• Prepayment penalties. Prepayment penalties are extra fees that may be due if you pay off the loan early by refinancing or selling your home. These fees may force you to keep a high-rate loan by making it too expensive to get out of the loan. If your loan includes a prepayment penalty, understand the penalty you would have to pay. Ask the lender if you can get a loan without a prepayment penalty, and what that loan would cost. Then decide what's right for you.
• Whether the interest rate for the loan will increase if you default. An increased interest rate provision says that if you miss a payment or pay late, you may have to pay a higher interest rate for the rest of the loan term. Try to negotiate this provision out of your loan agreement.
• Whether the loan includes charge for any type of voluntary credit insurance, like credit life, disability, or unemployment insurance. Will the insurance premiums be financed as part of the loan? If so, you'll pay additional interest and points, further increasing the total cost of the loan. How much lower would your monthly loan payment be without the credit insurance? Will the insurance cover the length of your loan and the full loan amount? Before you decide to buy voluntary credit insurance from a lender, think about whether you really need the insurance and check with other insurance providers about their rates.

You'll also want to ask each lender to provide, as soon as possible, a written Good Faith Estimate that lists all charges and fees you must pay at closing. Ask for a Truth in Lending Disclosure, too. It states the monthly payment, the APR and other loan terms. Although lenders are not always required to provide these estimates, they're very helpful because they make it easier to compare terms from different lenders.

2. After Choosing a Lender

• Negotiate. It never hurts to ask if the lender will lower the APR, take out a charge you don't want to pay, or remove a loan term that you don't like.
• Ask the lender for a blank copy of the form(s) you will sign at closing. While they don't have to give you blank forms, most legitimate lenders will. Take the forms home and review them with someone you trust. Ask the lender about items you don't understand.
• Ask the lender to give you copies of the actual documents that you'll be asked to sign as soon as possible. While a lender may not be required to give you all of the actual filled-in documents before closing, it doesn't hurt to ask.
• Be sure you can afford the loan. Figure out whether your monthly income is enough to cover each monthly payment, in addition to your other monthly bills and expenses. If it isn't, you could lose your home — and your equity — through foreclosure or a forced sale.
• If you are refinancing a first mortgage, ask about escrow services. Ask if the loan's monthly payment includes an escrow amount for property taxes and homeowner's insurance. If not, be sure to budget for those amounts, too.

3. At Closing

Before you sign anything, ask for an explanation of any dollar amount, term or condition that you don't understand.
Ask if any of the loan terms you were promised before closing have changed. Don't sign a loan agreement if the terms differ from what you understood them to be. For example, a lender should not promise a specific APR and then — without good reason — increase it at closing. If the terms are different, negotiate for what you were promised. If you can't get it, be prepared to walk away and take your business elsewhere.
Before leaving the lender, make sure you get a copy of the documents you signed. They contain important information about your rights and obligations.
Don't initial or sign anything saying you're buying voluntary credit insurance unless you really want to buy it.

4. After Closing

Having second thoughts about the loan? The Truth in Lending Act gives most home equity borrowers at least three business days after closing to cancel the deal. This is known as your right of "rescission." In some situations (ask your attorney), you may have up to three years to cancel. To rescind, you must notify the creditor in writing. Make sure you document your rescission. Send your letter by certified mail, and request a return receipt. That will allow you to document what the creditor received and when. Keep copies of your correspondence and any enclosures. After you rescind, the lender has 20 days to return the money or property you paid to anyone as part of the credit transaction and release any security interest in your home. Remember that you must then offer to return the creditor's money or property, which may mean getting a new loan from another lender.

High-Rate, High-Fee Loans The Home Ownership and Equity Protection Act (HOEPA) may give you additional rights if your loan is a home equity loan, second mortgage or refinance secured by your principal residence and if: the loan's APR exceeds by more than 8 percent the rate on a Treasury note of comparable maturity on a first mortgage, or the loan's APR exceeds by more than 10 percent the rate on a Treasury note of comparable maturity on a second mortgage. the total fees and points at or before closing exceed $499 or 8 percent of the total loan amount, whichever is larger. (The $499 figure is for 2004 and is adjusted annually.) Credit insurance premiums written in connection with the loan count as fees for this purpose. If HOEPA applies: A lender may not engage in a pattern or practice of lending based on home equity without regard to the borrower's ability to repay the loan. You must get certain disclosures from the lender at least three business days before closing. Your lender cannot make a direct payment to a home improvement contractor. Certain loan terms are illegal — such as most prepayment penalties and increased interest rates at default. In most situations, your loan cannot have a balloon payment due in less than five years. Due-on-demand clauses may not be used unless the consumer defaults. A lender that has made a HOEPA loan to a borrower generally may not refinance that loan into another HOEPA loan within the first year. Your lender may not call a one-time loan a line of credit. A high-rate or high-fee loan might be right for you, but be aware that it has risks. It is an   extremely expensive way to borrow money. You could lose your home if you can't make the payments.

Where to Complain

If you think your lender has violated the law, you may wish to contact the lender or loan servicer to register your concerns. At the same time, you may want to contact an attorney, your state Attorney General's office or banking regulatory agency, or the Federal Trade Commission.

How to Identify the Qualities of a Good Roommate

By Lane Cummings, eHow Contributor

updated: January 12, 2011

Identifying the qualities in a good roommate depends on your own personal needs.

Finding a roommate can often pose a challenge; finding a roommate that you're compatible with can pose an even bigger challenge. That's often because people are individuals with unique living habits and needs: some people abhor dirty dishes in the sink, other people like the ease of doing dishes when they feel like it. Finding a roommate that you're compatible with means finding someone who is compatible with your own set of idiosyncrasies. However, your search for a roommate will be easier if you identify early on the qualities of a good roommate for your particular character and habits.

Instructions 

Interview people you know who already have roommates or who have had the experience living with a roommate. Ask them about their likes and dislikes, things they enjoyed an that bothered them about the experience and note down answers that you find relevant to yourself. 

Visualize your ideal roommate. Write down the qualities that this person would have. For some people, a quiet, tidy person is most important. For others, a social, outgoing roommate would be ideal. Write down at least 10 characteristics.

Look at your list and circle the qualities that you absolutely cannot live without. It's unlikely that you'll find a roommate that meets all of these qualities, and that's why you need to pinpoint that qualities that will make a roommate good for you. For example, some people will insist on a nonsmoking roommate. Others might require that a roommate have steady work.

Write down a list of your personal likes and dislikes. Circle the likes and dislikes that you are most passionate about. Bear in mind that a roommate that is best for you will most likely share some of your likes and dislikes. For example, you'll probably want a roommate who loves animals if you're a member of PETA.

Write down basic characteristics that all of your friends share. If you take time to think about it, all or most of your friends probably share some of the same aspects. These aspects are most likely qualities that, whether you're aware of it or not, are extremely important to you. For example, perhaps most of your friends follow the golden rule, or all of your friends are very communicative.

Land Buying Tips

Buying Land to Build a New Home?

By Elizabeth Weintraub, About.com Guide

Do your due diligence before buying land.
Whenever I think about buying land, I can't help but hear the theme song for that 1960's TV show running through my head: "Green acres is the place for me." Laugh as you may, urban dwellers often idealize what it's like to live on acreage outside city limits. So before you decide to dump it all for "give me that countryside" and buy land on which to build your dream home, consider first the realities.

Benefits to Buying Land

Land costs drop in the country. The further away from the city, the cheaper the acreage. Many people buy land because they want to build a custom home to their own specifications. They also want cleaner air and more space. Wide open areas without trees shading the house are perfect settings in which to install solar panels, which is a concern for many environmentally concerned buyers who use green building materials.

Drawbacks to Buying Land

Finding skilled craftsman willing to travel might be difficult. Some might not show up as promised and may want higher wages to compensate for the distance. Transporting building materials and paying for delivery will likely cost more over building a home in the city.

Although modern conveniences are available, they aren't always reliable in the middle of nowhere, which is why many home owners in the country use generators as a back up when utilities fail. Going into town for groceries and other shopping needs generally requires planning and long trips. If it snows, and the roads aren't promptly plowed, you could be snowed in for days.

Renting Before Buying Land

If you are unfamiliar with an area, it might be a good idea to rent a home first before buying the land and beginning construction. As a new resident, you can get to know the community first hand and hear stories from local owners that you won't hear if you pull up in an SUV with a fat wallet in your pocket asking about MLS listings.

Resale value is often softer in the country than the city. That's because the pool of potential buyers is smaller. If demand is low and supply is high, home prices will be more negotiable. As a tenant, you can try to time the real estate market and be ready to buy that parcel of land when it first becomes available.

Factors to Consider Before Buying Land

    Zoning Requirements

    Check with local authorities (city, county and state) to determine zoning ordinances and whether you can build the type of home you want before committing to buying the land. A community within 20 minutes of Sacramento city limits, for example, does not permit construction of any structure on parcels smaller than 20 acres. Ask about future zoning, whether there are plans to put in shopping centers or airports, or to change nearby land uses that could also devalue your land.

    Smells and Sounds

    Realize that you might be trading exhaust fumes from city buses for the lovely odors produced by pig farms. Some farm animals such as geese and donkeys produce squawks and brays that travel for miles. Horses along country roads drop steaming piles of waste. It's not like anybody carries along a plastic bag and picks up after their horses.

    Natural Hazards

    Obtain a natural hazard disclosure and look for soil problems. Some parts of El Dorado County near the Sierra, for example, have naturally occurring asbestos in the rocks and soil. A disclosure will tell you if the land is a protected habitat, which would prohibit building. Is the area a known fire hazard? Is the fire department supported solely by volunteers? Many owners in the country maintain private ponds for fire emergencies.

    Elevation

    If the land is located near hills, how likely is the land to move? Some slab foundations can crack if the land is unstable. Find out if your parcel lies within the path of a potential landslide. For construction near bodies of water, you might want to consider building a raised foundation and make sure to buy flood insurance. If the land was once a swamp, ask neighbors about the condition of their foundations.

    Easements

    If access to your land is provided by driving across an adjoining parcel, you should obtain an easement and make sure it is recorded. Find out who maintains the roads and what your prorata share might cost for upkeep. What rights do neighbors have to cross your land? Are the boundaries clearly marked? Obtain title insurance, which will disclose easements and restrictive covenants or conditions. You might want to order a survey of the land.

    Utilities

    Water is important. Not all water is potable. Sometimes water rights don't "run with the land," which would mean you could not dig a well. Find out the depth of your water table and determine the difficulty of digging. Is the ground mostly rock? It can be costly to bring electricity, telephone or cable services to the property if they are not already established nearby. Will you need to install a propane tank? Consider a generator for back-up during power outages. If you cannot hook up to a sewer, what will it cost to install a septic system?

    Appraisal

    It's common to pay cash for land. If you're not planning to finance the land purchase through a conventional lender, which will require a lender appraisal, then obtain your own appraisal to determine an appropriate price before making an offer. Comparable sales are sometimes difficult to find when buying land.

How to Negotiate With the Land Seller...

By Robyn Nelson, eHow Contributor

Negotiating with a land seller is part of the give and take in buying a piece of property. The seller asks a particular price and the buyer wants to pay less. To purchase the land at a lesser price, negotiations must take place. The asking price is rarely the agreed-upon purchase price. A wise buyer will offer a lesser amount of money after reviewing the current title of the land for sale and visiting the property. A good land negotiation takes place when both the buyer and seller believe they have received a good deal.

Instructions

Reviewing the Property
Obtain a vesting deed for the land for sale. This is available at the county courthouse from the county clerk's office. The vesting deed is the ownership deed for the current land owner. Review this deed to see if there are any easements or rights of way that have been granted and for what purpose. This information could be a negotiating point to justify a lower offer. This will also provide the legal description of the property.

Review the appraisal. This may have been done by the seller before the property was listed. If it is being done by you, the buyer, ask the appraiser for a list of like properties that have sold in the area. Compare those prices and see if the asking price is within reason of those that have sold. An appraisal will have to be done if you are seeking financing, but during the negotiation phase, like property analysis will do.

Obtain a copy of covenants and restrictions, if any, for the property. This document will detail any requirements from the community for building and include any restrictions, such as building setbacks or housing styles allowed. These could provide reasons for offering a lower price.

Inspect the land that is for sale. Notice aspects dealing with water, sewer and electricity. Is there a phone line to the property? Will you need to drill a water well? Will you need to put in a septic system? If a septic system will be needed, is there appropriate land for a leach field? Will you need to pay to have the power company build an electric line? Is the access a right of way through the neighbor's property? How many gates will you need to open? The answers to these questions will dictate whether a lower offer should be tendered.

Making an Offer

Calculate all of the costs to bring the land up to the condition you would like. It is possible that the land is already prime and no additional costs will be incurred. Calculate the price of like properties that have sold. Calculate the need of the seller. Find out why the land is being sold. If the seller is in a hurry due to a move or money issues, calculate the offer you believe will interest the seller. Calculate the most you are willing to pay the seller.

Offer a lower amount of money than the asking price. Make sure it is significantly lower than the highest price you are willing to pay. The land seller will likely counter with a higher offer than your lowest amount. Judge the amount of time that was taken for the counter offer to be tendered. If it was close to your offer, try one more amount, in between your initial offer and the counter. It is likely that a price will be settled upon. If it was quick, but not much lower than the asking price, wait.

After waiting up to 2 weeks without any word from the land seller, make another counteroffer. The length of time is dependent upon how badly the seller needs to sell. If the seller is willing to wait, the need is not too great. Your next offer will need to be more.

After making a counteroffer, conditions or contingencies may be placed on the offer. You may offer a higher amount, but examples of contingencies or conditions may be that the seller pay closing fees or pay for the appraisal. These items can negate the higher dollar amount that you are offering.

Continue the back and forth of offers until an amount is reached that is agreeable to both parties. Do not exceed the price you initially set as your maximum amount to pay. No property is worth paying more than you can afford. If both you and the land seller believe a good deal was made, negotiations were successful.

Prices of local building materials increase!

Monday, 16th May, 2011
Workers load bricks on a truck in Namanve, Mukono By Samuel Balagadde THE prices for local building materials haveshot up, industry players have said. They said prices of sand, stones, stone aggregates and timber have increased in the recent past. An average-sized clay brick is sh300, from sh220, while a two-tonne Elf tipperful of sand, is sh100,000 from sh70,000, depending on the distance to the site. Godfrey Lukwago, a sand and bricks dealer in Namasuba on Entebbe Road, said the increment was partly due to the general rise in prices of all goods in the country. He added that there was also a shortage of quality building materials like sand and stones aggregates. The retail price for a 50-kg bag of cement has increased to 26,000, from between sh24,000 and sh25,000 less than a month ago. A 10-feet, 30-gauge coloured iron-sheet is sh45,000 or more, from sh43,000 a month back.

Move to raise interest rates will hit mortgage sector!

According to a Central Bank of Kenya mortgage finance analysis released in November 2010, Kenya’s mortgage rate to GDP ratios remained low — at 2.48 per cent. Photo/FILE

By EMMANUEL WERE  (email the author)

Posted  Monday, May 16 2011 at 00:00

Industry players are cautioning against price wars in the mortgage market as commercial banks across East Africa race to meet the rising demand for homes and commercial buildings.

They fear that the move by central banks across the region to raise interest rates — expected soon — in a bid to protect their economies from inflationary pressures and weakening currencies, would mean home owners pay more on their mortgages.

Among other incentives, banks have been reducing interest rates on mortgages or offering full property financing in order to woo more customers.

But Frank Ireri, managing director of Housing Finance, said rather than reduce interest rates, mortgage lenders were better off engaging in product innovation to grow their home loans.

He said pension backed mortgages that allow borrowers to use up to 60 per cent of their pension benefits to secure a mortgage from a bank or take an ordinary loan are among such innovations.

Kenya’s CFC Stanbic Bank for example, is among those offering its clients 100 per cent mortgage on property.

“We are providing a solution to potential home buyers who were unable to access mortgages due to the requisite deposit they must make on the property,” said Elly Odhong, the head of personal and business banking at CfC Stanbic.

However, to qualify for the loan the property must cost between Ksh3 million ($35,300) and Ksh10 million ($117,650) — a clear indication that the bank is targeting the high income earners, a statement Mr Odhong refutes.

“CfC Stanbic has aligned its mortgage finance products to appeal to a wide segment of potential home buyers and we understand that each segment is unique,” he said adding that the main qualification criteria is the customer’s ability to meet their obligations which include repaying the loan.

Barclays Bank Kenya on the other hand is advertising an 11.9 per cent interest rate, which the bank is pitching as the cheapest home loan in the market.

According to a Central Bank of Kenya mortgage finance analysis released in November 2010, average interest rates on home loans stood at 12.59 per cent for the large banks.

Real estate received the lion’s share of credit at Ksh46.52 billion which was 29.8 per cent of the total credit ($553,800 million) to the private sector in the 11 months to November 2010, according to Central Bank of Kenya’s December 2010 monthly economic survey.

In Uganda, banks have also been increasing their exposure to the real estate sector.

“The share of foreign currency loans to the building and construction sector rose to 17 per cent in February 2011, signalling banks’ rising exposure to this sector,” said the Bank of Uganda in its latest monthly economic survey of March 2011.

Building and construction only accounted for 8.9 per cent of loans in the foreign currency loans in December 2007.

Potential for low-cost housing projects in Uganda!

An example of the four-bedroom houses of the Kensington Luxury Heights development in Kampala, Uganda.

Jaco Maritz | June 15, 2010 at 01:02 

inShare

Uganda’s property sector holds considerable potential. Jaco Maritz spoke to the general manager of Kensington Real Estate about her company’s current projects and where the opportunities lie in Uganda’s property market.

Give us a brief overview of Kensington’s major projects in Uganda to date
Kensington Real Estate is a key player in Uganda’s real estate scene. It is an international corporation with offices in Kampala, Dubai and London, [and] with sister concerns in Ghana and India. Our first development in Uganda was the Sunset View Homes. We then developed Kensington Signature Homes comprising only eight spacious four-bedroom homes of about 250 m². Kensington Luxury Heights is our current and biggest development to date with 149 houses ranging from two- to five-bedroom homes. We offer homes for the different stages in life, from the single occupant to a family household. The complex will provide residents with a private lifestyle offering a fully serviced commercial centre, recreational area, nursery school, sports facilities and a lot more. All of these projects are situated in the capital, Kampala.

It looks as if Kensington is mainly involved in providing housing for the upper-end of the market. Are there any plans to develop low-cost housing estates?
Our developments differ. Sunset View Homes and Kensington Signature Homes were built for the upper-end. Our current development, Kensington Luxury Heights, situated in Kisaasi, is not specifically designed for an exclusive class of people. Our home owners are quite diverse and anybody who has a high standard lifestyle and a dream of owning a home can do so. Yes, we do have plans for low-cost houses in the future.

How well developed is Uganda’s mortgage industry? Is it easy for Ugandans to get mortgage facilities?
The mortgage market is still at the primary level. Given the high mortgage interest rates, it would take a while before the market reaches a fully fledged secondary level. Property prices for both rentals and sales are quite high, and not proportionate to salary levels. While a number of banks are providing mortgage financing, houses on the market today are still out of reach for the majority of Ugandans who would want to own a home.

Where are the major opportunities in Uganda’s property sector?
Low-cost homes. Currently most developers have targeted the middle- to upper-income bracket. The current housing estates are located about eight kilometres out of [Kampala's] city centre. The government needs to assist developers by constructing good roads, like the recently opened northern bypass. Traffic jams are a discouragement for people who want to reside out of the city centre.

With a population of about 26 million people and one city, there is definitely room for expansion. Developing satellite towns with adequate facilities on the outskirts of Kampala will be most ideal and also see some development in other small towns. We have [also] seen a rise in the development of commercial buildings of international standard.

What is your message to foreign property developers looking to invest in Uganda’s market?
I would advise developers to study the market, once you choose your segment then build accordingly. Property development still has great open potential in Uganda. There is a serious shortage of housing especially for the lower-end [of the market] although the land prices can be prohibitive. Slowly the concept of cluster houses is being accepted. Kensington Africa Limited is one of the pioneers in housing estate [developments] and has been instrumental in changing the attitude of people towards cluster living.

Kensington Homes to be ready by July!

Saturday, 07 May 2011 07:19 Paul Tentena & Alec Muhoho

KAMPALA, UGANDA - Real Estate developers, Kensington Homes expects to complete their Kisasi-Kyanja estate on the out skirts of Kampala city by July this year, a senior company official told East African Business Week last week.

Kensington is a young and dynamic brand home development company with professionalism, integrity, creativity and entrepreneur flair. It represents a passion for real estate and success for its clients.

The company general manager Ms. Lynnete Chiromo explained in an interview that all the 149 homes and a commercial centre will be ready for occupancy by mid this year. "So far 45 homes are already occupied, full completion and occupancy will be in July this year," said Chiromo.

She said the high inflationary levels currently affecting the country have had no effect on the development of the homes. "Inflation, no it has not affected us. The delays we had were experienced during the credit crunch that hit the world not the current inflation," she noted.

Uganda is currently facing high levels of inflation. According to figures that were released by the Uganda Bureau of Statistics recently, year on year inflation jumped from 11.1% to 14.1%, while food inflation surged to 39.3% from 29.1% in April this year. For the construction sector according to UBOS, constructing a residential building or a commercial one is becoming harder as prices of construction materials are shooting up.

In the first quarter of the year, it recorded tremendous increases in the prices of timber, clay bricks, tiles, and water and iron sheets, indicating that people had  exceeded the normal expenditure.

Chiromo indicated that people can acquire Kensington homes by either cash payment or through mortgaging.
She noted that to acquire a two bed-roomed house, one has to pay around $89,000 (Ugs213.6m) while a three and four bed-roomed house costs $159,000 (Ugs381.6m) and $209,000 (Ugs501.6m) respectively. A five bedroom home goes for $289,000 (Ugs693.6m).

Firms set up real estate body

Monday, 16 May 2011 10:37 Emma Onyango

KAMPALA, UGANDA 
A number of companies in Uganda have entered the real estate business yet there are no specific laws to regulate their establishment and operation.
This is why real estate developers have set up an umbrella body to regulate and set standards in the booming sector.

The Uganda Home Builders' Association (UHBA) first conceptualized in 2008 when the country hosted the International Housing Association meeting in Kampala is set to be launched in June with a host of activities lined up including a real estate exhibition, a golf tournament, among others.

The association currently has eight pioneer members including the National Housing and Construction Company, Akright Housing, Kensington Heights, among others.

Ms. Elizabeth Rumanyika, the President of UHBA told East African Business Week in an interview that registration of new entrants is ongoing and urged other players in the sector to join the association to share  challenges and goals.

"Our goal is to push for reforms and policies that will enable us have a strong and single voice towards solving similar challenges, while at the same time channeling our efforts towards a similar cause," said Rumanyika.
She said  the association's main aim was to push for self regulation as is the case in many countries.

This she said would enable the home builders gain credibility as they would be able to consolidate the ideas from the members because they (real estate developers) are aware of the challenges that face them.

"Enforcement is very pivotal because we currently have policies and very good ideas and yet we cannot implement them because we do not have the powers to regulate ourselves."

Currently, real estates are regulated by the town and county planning boards under the statutory body of the physical planning unit, which is only responsible for approving construction plans of residential houses without going into the detailed site plans.

Ms. Rumanyika also added that clients who need advice regarding home ownership can be helped by the association as they will be readily availed with information.

"In order to build or acquire a good home, you will need someone who is well established and can be trusted; someone who has the knowledge and skills in constructing a new home.

“The association is therefore the place to turn to because unlike the old days, today people are focused on simplicity, efficiency and practicality. Simple architecture is the order of the day as home owners want to create spacious houses", she added.

Industry experts have also pointed out that Low-cost housing programmes, spearheaded by the Government, would help more people acquire shelter, but they are ineffective.

Lack of low-cost houses accounts for 65% of the housing deficit in the country.
Ms. Rumanyika said that the Uganda government should borrow a leaf from Kenya, where the government facilitates home developers who are building low cost houses so as to provide customers with affordable housing.

"Infrastructure development is very expensive, let alone the acquisition of land and the hustle associated with it. If government could provide land and also subsidize taxes, then people would be able to acquire low cost homes", she added.

For All International Real Estate News!

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NYUMBA.Net: 4 Signals It Might be Time to Buy (vs. Rent) Your Home

NYUMBA.Net: 4 Signals It Might be Time to Buy (vs. Rent) Your Home: "}"

www.nyumba.net

Is Uganda's Official Real Estate Refferal Website!

 www.Nyumba.net  puts real estate listings for thousands of homes and land for sale at your fingertips in Uganda. We offer thousands of properties spanning over 100 districts/cities and towns representing Hundreds of MLSs. Simply enter a location, price or size particulars in our search bar to gain access to www.Nyumba.net expansive database of real estate listings, homes for sale & rent, apartments, warehouses and Land currently on the market. You can even find apartment listings and homes for rent. Each real estate listing provides comprehensive details about the property so you have a clear picture of what features and amenities are included.

  

www.Nyumba.net  goes beyond real estate listings, with access to real estate tools, resources and proffessionals. We offer proffessional guidelines, real estate buying tips, and even quotes from the most experianced real estate investors. We are even working on a real estate library where you can read up on important real estate facts and details as compiled by Uganda's real estate Journalists. www.Nyumba.net  not only provides you with everything you need to find the perfect property but also extends all the  professional advice and links  you need to successfully conclude great deals in the most accessible ways.

By Uganda's Official Real Estate Refferal Website! 

Nyumba Recommended By Trip Advisor In This Link! 

4 Signals It Might be Time to Buy (vs. Rent) Your Home

By Uganda's Official Real Estate Refferal Website!

To rent or to buy:  what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery.  Low prices seem to create a wide-open window of opportunity, but they also create the concern that prices will keep falling after closing.  And that Catch-22 has hundreds of thousands of buyers-to-be stuck on the fence.

Fortunately, there are handful of life, mortgage and local market signals which indicate that the time *might* be right to hop – scratch that – leap off the fence and into homeownership:

Mortgage rates are going up.  Home prices have been low for the last several years, and in fact are currently looking like they’re heading back down to the same levels they were at the depths of the real estate recession. During this same time frame, interest rates have also been low – this one-two punch has created record-high affordability for the last four years running, causing buyers to believe that this window of opportunity won’t be closing anytime soon.

While prices don’t look like they’ll be skyrocketing anytime soon, interest rates are another story. Rates have been on a rollercoaster over the past few months, and with inflation and Fed rates set to spike later this year, today’s low interest rates might be as good as they’re going to get for a long time to come.  And I mean a very long time – in the next few years, governmental intervention in the mortgage markets is likely to wind down, and that means higher mortgage interest rates are not only inevitable, they’ll probably be here for a long, long time. 


Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy.

Rents are going up.  Rental rates in many areas are also on the rise – in fact, the foreclosure crisis has acted created additional demand on many markets’ rental housing inventory in several different ways. First, former homeowners who lost homes to foreclosure now need to rent; as well, buyers in foreclosure hot spots have been hesitant to buy, many electing to stay renters far beyond when they would have otherwise. On top of all that, super-tight lending guidelines have stopped even some who would like to buy homes from doing so.  As a result, rental homes are in high demand – and rents are rising.

Rising rents at a time when the prices of homes for sale are low and, in some places, falling?  One more signal that now might just be the time to buy. (Of course, where foreclosures are high, the chances of continued depreciation are, too – to offset this risk, have a long-term plan, to minimize the possibility that you’ll owe more than your home is worth when you need to sell.  Read on for more on how to plan for the long term and minimize your homebuying risk.)


Your income and career are stable for the foreseeable future.  The smartest homebuyers look to their lives, not just the market, for signals about when the time is right to buy. Homebuying is a long, long-term endeavor these days. The goal is to be able to commit to staying in the same place, geographically-speaking, for 7 to 10 years before you buy (more in a foreclosure-riddled market, less in an area that has been more recession-resistant). Most lenders will require that you’ve been at your job – or in the same general field of work – for at least two years before you buy. But that’s the bare minimum – beyond that, you don’t want to be barely beginning a career in which you think you may need to move sooner than that, nor do you want to buy when you’re advanced in your career, but in an industry which is dying or downsizing the workforce in your region (unless you have a strong Plan B).

When you get to the spot in your career where you can realistically project a stable income 7 to 10 years out, life might be giving you a green light to move forward on your homebuying dreams.

You can reasonably predict the home you’ll need in the years to come.  Since successful homeownership requires that you be ready to be in the place for a good number of years, best practice is not just to buy a home with the space and number of rooms you need right now – rather, you should aim to buy the home you’ll need 5, 7 or even 10 years down the road (to the best of your ability to predict, of course). You might be a newlywed with no kids now, but you plan to have them in a few years. Or maybe you’re a newly minted empty nester right now, but can project that you’ll want to retire - and might not want to climb two flights of stairs to get to and from your bedroom - 10 years down the road. Before you buy, you should be in a position to buy the home that meets your future needs – not just your current ones; and that requires that you have a reasonable idea of your life vision and plan for the future.

If you’re able to predict – and afford, at today’s prices – a home with the space, amenity and geographic location you’ll need 7 to 10 years from now, you might be in a good phase of life to get off the rent vs. buy fence.

With that said. . . buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations, so if one or more of these signals are present for you, that doesn’t mean you have the green light to run out and buy a home tomorrow – rather, it’s a good sign you should begin down that path, if you’re so inclined. You’ll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term.

It’s not overkill to check in with a mortgage pro, a tax pro, a local real estate broker or agent and a financial planner to make sure all your ducks – not just one - are in a row before you make your move.

Why Buying a Home is a Good Idea

By Uganda's Official Real Estate Refferal Website!

The Best Investment

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

But take a second look…

Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $40,000.

At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make.

Reasons to Delay Buying a Home

By Uganda's Official Real Estate Refferal Website!

 
Assuming you have the financial resources and the desire to eventually own your own home, there are very few good reasons to put off the purchase. You can miss out on years of appreciation if you do.

The main thing you want to avoid when buying a home is being put in a position where you will have to sell it too soon. If you have to sell a home before it has appreciated enough to cover the costs and commissions of selling, you could find yourself in a financial bind. This is especially true for those who buy a home with a down payment of ten percent or less.

Real Estate commissions traditionally run around six percent of a home’s sales price. The seller’s closing costs generally come to about one and a half percent. You can see how this can easily exceed the first year’s appreciation. If you made a minimal down payment, you could actually have to come up with cash out of pocket to sell your home.

New to the Area

A very good to reason to delay buying a home is if you have just moved to an unfamiliar area or region of the country. It makes sense to rent for a number of months before deciding on exactly where you want to live. Often when people buy a home immediately they find that they might have made a better decision if they had waited awhile.

Uncertain Job Future

You could be right out of college or expecting a promotion and a transfer. Or your company has announced an impending "restructuring." If any of these apply, it might be best to wait to buy a home. When you have a more accurate picture of what your next few years will be like, that will be the time to buy.

Marital Problems

Real estate agents see a lot of life unfold before their eyes. One of the saddest occurs when former clients divorce and are forced to sell a recently purchased house. It happens all too often when a family in turmoil decides that buying a new home may help resolve their problems. Perhaps it is inevitable that such problems occur, but selling a home before it appreciates can create an additional financial burden in an already difficult situation.

Living next to the landlord is such a pain!

A property up for rent in Kampala. Renting a house in the vicinity of its owner comes with its share of nightmares.  

By RONA NIISIMA
Posted  Thursday, April 28 2011 at 00:00

 

We dream of having our own homes someday. But, buying or building one is not easy. So, we rent for a while and with that comes not just worries over rent but those sometimes ridiculous rules set by some landlords. It’s harder when your landlord lives right next door. You feel like you’re under a microscope and he or she is watching your every move, waiting for you to step out of line.

My former landlady had such a grip. Many tenants moved out earlier than planned. She regularly asked to inspect “her” houses, checking the walls and doors to make sure we hadn’t damaged them in any way.

On one visit, she asked me to remove the carpets I’d just placed in the bedroom and sitting room, saying that because they were plastic, they would ruin her floors. All my neighbours heard her giving me the talk. I almost failed to leave the house that day.

It turns out I’m not the only one who prefers not to live close to my landlord. Jonah, a tenant in Kibuye, is familiar with the discomfort. He says, “You have to think twice before buying anything nice because he’s always snooping around and ready to remind you that he needs his money.”

“We share the cooking area and if he happens to see you preparing meat or milk, he assumes you just don’t want to pay him yet you can afford the “nice” food.” Jonah adds that sometimes his salary comes late but the landlord expects the rent on the first day of the month.

Kate rents in Soya on Ggaba Road, and says, “My landlord keeps track of everyone who visits and how often. He also doesn’t want people to stay over. One day, my mum was very sick and was admitted to a hospital in Kampala. She was later discharged and the doctor asked me to monitor her condition for at least a week. Letting her stay at my place was the best way I could do. But my landlord said I should have informed him that someone was going to stay over.” She adds, “What hurt me was that his concern was not for my mother’s well-being but rather his property. The rule now is we have to inform him in advance if friends or relatives plan to visit.”

And what do the landlords have to say about living close to their tenants?

Mr Busonga Musoke of Kirinya Parish in Ndeeba owns three sets of two-roomed quartres and recently put up his own house right next to the rentals.

“In the past, I would just come around to collect my rent only to find the tenants had disappeared,’’ he says. “I have problems too. I need special medical care and these houses are my source of income. If people keep running away without paying, then how will I survive?” he asks.

John Semaganda, a tenant in Busega Nateete, says, “Some people just don’t care about things like keeping the place clean. There are also fights about the bills. People use water, power and benefit from the security guard’s services but when it comes to paying, they don’t want to contribute. The presence of a landlord eases that. Many of these people are our parents’ age so we respect them, something we may not do if it were just our neighbours telling us to do the same.”

Having a landlord who lives on his property will create a better chance of getting things fixed quickly. If your sink needs to be repaired, they are just minutes away and you don’t have to wait to report when they come around, which could take weeks. Still, living next to your landlord is bound to give you nerves.

If houses could speak, what would yours say?

A house like this with many plants speaks nature and warmth while a wall with colourful decorative stones says a lot about your style.   

By Joe Nuwamanya
Posted  Thursday, April 28 2011 at 00:00

 

Objects through their shapes, colours, texture etc send messages to us. So a house can also send a message. Just imagine if houses could speak. What would yours say or communicate?

If it is true that the beautiful houses and furnishings evoke aspects of happiness, we might nevertheless ask why we find such evocation necessary. Why does it matter what the environment has to say to us? Why should architects endeavour to design homes that communicate specific sentiments? Why are we negatively affected by places which reverberate what we take to be the wrong allusions? Why are we venerable to what the spaces we inhabit are saying? When you ask yourself such questions you are relying on associative powers that designers will understand what you are looking for.

As a designer, I can line corridors with unpainted wooden planks and dependably allude to rustic and unpretentious or install white railing around balconies and know that the house will be speaking of water front villa or of an ocean liner and the nautical life.




Despite the expressive potential of objects and buildings, discussion of what they express still remains rare. We tend to be more comfortable contemplating historical sources and stylistic tropes than we do delving on bringing strong images, memories, or feelings to mind.

The homes/houses that we admire and that speak to us are ultimately those which in a variety of ways extol values we think worthwhile – which through their materials shapes or colours refer to such legendary positive qualities as friendliness, kindness subtlety, strength and intelligence. We seek associations of peace in our bedrooms, metaphors of generosity and harmony in our chairs and an air of honesty and forthrightness in the design of the kitchen sink and tap.

Houses should be about how much room is given for the imagination, the unique dwellings normally reflect the characters of the owners and how much time has gone into the planning and design process. Each home’s unique appeal—exquisite wall treatments, spectacular floors, rich fabrics, luxurious materials, fabulous furniture and innovative design ideas speak volumes of the owner.

A house that speaks will require a synthesis of personal vision. It also needs, desires and definitely faces constraints from what the site or location have to offer. Once these parameters have been integrated, balanced and compromised, then you have a place to truly call home. But the big idea - aesthetic or emotional comes to pass when the house is done.





When considering your own vision for your house, imagine all the different things you think make up a home. Is home a quiet retreat for relaxation and contemplation? Is it a place for entertaining friends and guests? Is it for raising a large family through all the cycles of family growth? Do you think a home has to last two or three years while your family is young? What are the things that you think of fondly and would like to implement? What do you value in terms of space and arrangement?

Consider the elements of style you’d like to emulate. Is your preferred style craftsman, contemporary, italianate modern bali or do you just want to let your imagination run wild or that of your designer? Do environmental conditions dictate some of the style? Just make sure you know what you want not what you don’t want (many times clients only know what they don’t want versus what they are looking for). Once you’ve considered these things you will probably have a list. The list may be good enough but you might consider distilling that list into a sentence or two. This will be the place to start from and will be a tool to use to evaluate your success as the design process unfolds. Periodically through the process, ask yourself if the design still reflects your vision.

If the design isn’t accomplishing your, vision, it’s time to stop and realign the design. Only then will your building speak for its self when complete. To fully call a work of architecture or designer beautiful is to recognise it as a rendition of values critical to our flourishing, a conversion of one substance into another of our individual ideals in a material medium.

josephnuwamanya@gmail.com

Acquiring a home with aid from a financial institution!

 

By Paul Mugabi
Posted  Thursday, April 28 2011 at 00:00

In Summary

You can buy or build a house with your own available savings, should they be sufficient for an outright purchase or home construction, writes Paul Mugabi

Freedom, security and peace of mind are some of the many benefits that owning a home brings to many people’s lives. Home ownership generates a greater sense of belonging to the community and sometimes leads to involvement into other social activities, in order to create better surroundings, something which people who rent seldom bother with.

A home owner will also not worry about the necessity of changing their children’s schools that is inevitable with the change in residential location and the parents have the benefit of stability as they plan for the future.

Home owners are in better control of their immediate surroundings. They are able to change things and decorate their homes to individual taste, rather than seek someone else’s approval for remodelling or alterations.

Acquiring a home
Depending on the financial muscle of the prospective home owner, one can finance home acquisition with one’s available savings, should they be sufficient for an outright purchase or home construction.

One can also borrow from a financial institution that offers packages the developer will be comfortable with. These are called mortgages in the housing finance industry.

Ms Damalie Kairumba, the Home Loans Manager at Stanbic bank, advises that, “A loan facility is available to individuals and other entities interested in the development or acquisition of residential property. It may be advanced for building, completion of a stalled residential structure, renovation or improvement of the property.”

She says to be credit-worthy, it is essential that the applicant, whether they are individuals or corporate bodies, have “sustainable monthly incomes which are sufficient to repay the loan within a specified term.” All home loans have a maximum period of 20 years, as long as the home owner expects to be 65 years or less by the time the loan period ends.

Kairumba also talks of an option that enables one to access funding by using their existing property (without selling it) as a security. Currently, Stanbic lends 70 per cent of the market value of that property to the developer, courtesy of this facility, with a repayment period of 20 years, which is called the equity release.

The essence is to enable the client to use the borrowing for investment in other ventures or activities such as the building of more houses, purchase of land or even starting up a new business.

To qualify, an applicant would need to have impeccable personal identification, passport photos, and finance card, a copy of the land title, valuation report and proof of income. For completion/renovation financing, one needs to have approved building plans and provide the cost estimates of a building derived from measurements in the architect’s drawings in regard to the square area in metres of walls and roofs, the numbers of doors and windows, and systems (heating, plumbing and electrics).

The affordability of the mortgage is as important to the lender as it is to the borrower, hence Kairumba advises that, “To be certain that your mortgage is affordable, the amount you may borrow must have a monthly repayment amount that does not exceed 35 per cent of their ascertainable monthly net income.”

Many formal financial institutions have positioned themselves to do business with a great majority of people with steady incomes who are desirous of owning their homes. Housing Finance Bank offers home construction and country home construction mortgages for home development.

This bank also insists it will accommodate borrowers with ascertainable and sustainable monthly incomes sufficient to repay the loan within a specified term. Like Stanbic, they finance up to 70 per cent of the appraised market value and the maximum repayment term is 20 years with an interest rate that varies with the prevailing market conditions.

Because property (houses) market is low in most parts of rural Uganda, developers may not have titles to the property and the structure may not have been professionally designed. However, this bank will accept a structure in the urban setting as security when a developer borrows to develop their rural home.

Borrowers will be required to present the valuation report of the security, detailing the estimated value derived from measurements in the architect’s drawings in regard to the square area in metres of walls and roofs and the numbers and quality of doors and windows. It is 70 per cent of this market value that is released to fund the development of the rural home.

Developers funded by Housing Finance Bank must prove that the repayment does not exceed 35 per cent of their income per month.

Mr David Ninyikiriza, Housing Finance General Manager for Mortgage and Term Finance, adds that all concerned properties are insured against all conceivable damage or destruction. This is in addition to a mortgage protection insurance the developer is advised to take that would be useful in the event of their death before repayment is complete. If the property is in an urban setting, its rental value is used to offset the loan.

Mr Ninyikiriza however argues, “Most people in Uganda rely on social insurance in that their relatives ensure the loan is offset and the family retains the property. We have not had many cases where developers fail to complete the repayment of their mortgages. In the rare case of selling off the property, the owners keep the difference between the sale price and what had not been paid.”

People with steady incomes have another home development option in what Ninyikiriza calls the “growing house mortgage”. They may borrow to be able to build in phases, for instance starting with a bedroom, kitchen and bathroom.

This finance facility is for a shorter period of about four years on the basis of an expandable house design. After repayment for this phase, you borrow again to add other facilities until you complete your ideal house.

Defaults are not a threat as people largely value their investment, which are in any case all the while ever appreciating, hence they prefer to meet their loan obligations and keep the property.

Housing Finance Bank can also arrange for a loan for acquiring a plot of land, which is repayable in five years.