Wednesday, March 20, 2013
Wednesday, March 13, 2013
Perspectives on Real Estate
Wednesday, March 6, 2013
Its on the Rise
As a busy mom I try to find time to do some fun activities with my kids. My mom moved here about 2 years ago and she has a pool where she lives. So of course we try to take the kids swimming. Its fun, and wears them out for later! :)
Do you remember when you were a kid going swimming and getting the life preserver and trying your best to hold it under the water? Didn't work so well. They are designed to float. This thought brings me to my subject for today. Rising Rates.
Interest rates are rising to, and the Fed alone cannot hold them down forever.
Are you prepared to take action before it's too late?
1) The Winds of Change: The actions for the Fed are both very real, yet artificial in nature. They work, but as in nature, physics and economics, the laws, fundamentals, and truths always rise to the surface in the end. In fact, we've recently seen that the consensus of the market is far more influential than the Fed holding its finger in the dyke. When the majority of the market participants begin to act en-masse, there is little if anything effective enough to counteract the trend.
2) The Trouble with Targets: Lately, the Fed had taken to announcing their benchmarks for letting the preserver go, whether it's inflation within the ideal range, or the unemployment rate at 6.5% everyone now knows where the bulls eye lies. Smart investors operate ahead of the curve and will exit the scene before the tidal wave hits. They know it's safer to be alone at sea than with the crowd on shore.
3) The Factors: There are many things that can contribute to rising rates from positive economic news here and abroad to whispers or hints of policy change coming from the Federal Reserve Board of Governors itself. The collective sentiment and actions of the mortgage backed securities investors be they hedge or pension funds, institutions, sovereign nations or any of the many other groups at play are the ultimate arbiter of what mortgage rates will do and those forces acting in unison making the market regardless of what the the Fed might like.
4) What can we do? As individuals, we can't change the market but we can take advantage of it. How so? We can lock in a rate before it changes and we can lock it in for as long as a loan is structured to last. Whether it's a hybrid ARM loan for 3, 5 , or 7 years or a fixed rate for 10, 15, or 30 years, the choice is ours and there's great certainty that comes with that. A fixed monthly mortgage payment for as long as we foresee using that loan is a great way to create permanence in an otherwise uncontrollable sea of change.
Rising rates are upon us now and while it's rarely a straight line up, there's not much merit in gambling at this point in the hopes of getting something better later. As well, it's not just rates but home prices that are on the rise again. The compounding of higher rates and prices can make what's affordable today become out of reach tomorrow.
Do you remember when you were a kid going swimming and getting the life preserver and trying your best to hold it under the water? Didn't work so well. They are designed to float. This thought brings me to my subject for today. Rising Rates.
Interest rates are rising to, and the Fed alone cannot hold them down forever.
Are you prepared to take action before it's too late?
1) The Winds of Change: The actions for the Fed are both very real, yet artificial in nature. They work, but as in nature, physics and economics, the laws, fundamentals, and truths always rise to the surface in the end. In fact, we've recently seen that the consensus of the market is far more influential than the Fed holding its finger in the dyke. When the majority of the market participants begin to act en-masse, there is little if anything effective enough to counteract the trend.
2) The Trouble with Targets: Lately, the Fed had taken to announcing their benchmarks for letting the preserver go, whether it's inflation within the ideal range, or the unemployment rate at 6.5% everyone now knows where the bulls eye lies. Smart investors operate ahead of the curve and will exit the scene before the tidal wave hits. They know it's safer to be alone at sea than with the crowd on shore.
3) The Factors: There are many things that can contribute to rising rates from positive economic news here and abroad to whispers or hints of policy change coming from the Federal Reserve Board of Governors itself. The collective sentiment and actions of the mortgage backed securities investors be they hedge or pension funds, institutions, sovereign nations or any of the many other groups at play are the ultimate arbiter of what mortgage rates will do and those forces acting in unison making the market regardless of what the the Fed might like.
4) What can we do? As individuals, we can't change the market but we can take advantage of it. How so? We can lock in a rate before it changes and we can lock it in for as long as a loan is structured to last. Whether it's a hybrid ARM loan for 3, 5 , or 7 years or a fixed rate for 10, 15, or 30 years, the choice is ours and there's great certainty that comes with that. A fixed monthly mortgage payment for as long as we foresee using that loan is a great way to create permanence in an otherwise uncontrollable sea of change.
Rising rates are upon us now and while it's rarely a straight line up, there's not much merit in gambling at this point in the hopes of getting something better later. As well, it's not just rates but home prices that are on the rise again. The compounding of higher rates and prices can make what's affordable today become out of reach tomorrow.
Monday, February 25, 2013
Still Writing Checks to the Landlord?
Did you know that home loan payments can often be less than paying rent?
Renting can make good sense for those that don't intend to stay in their home for long, need extra mobility or have highly uncertain employment prospects.
If your planning on sticking around, there are several very solid reasons why owning can prove to be more rewarding:
1) Rates are at Historic Lows: and if that weren't already enough, prices are low too. This is an unusual and probably once in a lifetime combination. Together, the real cost of purchasing a home is less than it's been at anytime in about the last 50 years.
2) Buying builds equity: on most mortgage loans you pay down the principal balance with each payment. This typically starts at about $100 per month for every $100,000 of loan balance and increases each month through the entire life of the loan. To do an accurate rent vs. own comparison, you must subtract the principal paid each month from your total loan payment. Even where purchasing may be more than renting, this alone will often tip the scales back in the other direction.
3) Appreciation: its no secret that we haven't seen much of this lately, and there's no guarantee either. However, if we use history as a guide, values have typically risen at a pace above inflation and as long as there is only so much land and every more people, demand will rise and values will go up. Housing is precious and necessary commodity that we all need every day. It's our choice to rent or to own, yet buying one for yourself usually beats buying one for your landlord.
4) Tax Benefits: not everyone is going to benefit from this. Unless you have a sufficient basis to warrant "itemizing" on your taxes, it can be better to just take advantage of the standard deduction. However, the home mortgage and real estate tax benefits can be two of the most valuable items in the tax code for individuals. Many homeowners save thousands every year with these deductions. To learn how that might apply to you, it's best to consult your tax pro for personalized advice.
Home ownership can mean different things to different people, yet most cite the many benefits beyond just the financial. Becoming rooted in a neighborhood, school district or community, having the freedom and privacy to do what you want or to make modifications to your property as you please are all factors that can formulate the most valuable returns.
Renting can make good sense for those that don't intend to stay in their home for long, need extra mobility or have highly uncertain employment prospects.
If your planning on sticking around, there are several very solid reasons why owning can prove to be more rewarding:
1) Rates are at Historic Lows: and if that weren't already enough, prices are low too. This is an unusual and probably once in a lifetime combination. Together, the real cost of purchasing a home is less than it's been at anytime in about the last 50 years.
2) Buying builds equity: on most mortgage loans you pay down the principal balance with each payment. This typically starts at about $100 per month for every $100,000 of loan balance and increases each month through the entire life of the loan. To do an accurate rent vs. own comparison, you must subtract the principal paid each month from your total loan payment. Even where purchasing may be more than renting, this alone will often tip the scales back in the other direction.
3) Appreciation: its no secret that we haven't seen much of this lately, and there's no guarantee either. However, if we use history as a guide, values have typically risen at a pace above inflation and as long as there is only so much land and every more people, demand will rise and values will go up. Housing is precious and necessary commodity that we all need every day. It's our choice to rent or to own, yet buying one for yourself usually beats buying one for your landlord.
4) Tax Benefits: not everyone is going to benefit from this. Unless you have a sufficient basis to warrant "itemizing" on your taxes, it can be better to just take advantage of the standard deduction. However, the home mortgage and real estate tax benefits can be two of the most valuable items in the tax code for individuals. Many homeowners save thousands every year with these deductions. To learn how that might apply to you, it's best to consult your tax pro for personalized advice.
Home ownership can mean different things to different people, yet most cite the many benefits beyond just the financial. Becoming rooted in a neighborhood, school district or community, having the freedom and privacy to do what you want or to make modifications to your property as you please are all factors that can formulate the most valuable returns.
Friday, February 22, 2013
Does Size Really Matter?
Aaahhh the question that has been brought up for centuries! But today we are going to look at it from a different angle, (insert giggle).
Today it seems as if downsizing is a trend of the past. According to Census Bureau in 2011 homes were 141 square feet bigger than in 2010. They also reveal that the number of bedrooms and full bathrooms increased.
Check out this article:
Is the Downsizing Trend Fading?
So after reading, I assume the answer is....yes. ;)
Thursday, February 21, 2013
I know its been awhile since I've blogged. Unfortunately my son caught the flu and so graciously shared with me. I pray I don't see that bug again! Its one thing to take care of yourself while sick, but mom's don't get sick days.
When all is said and done, I'm now back at work and have a exciting project pending. I'm still trying to put it together, but I'll give you a sneak peak:
When all is said and done, I'm now back at work and have a exciting project pending. I'm still trying to put it together, but I'll give you a sneak peak:
WELCOME HOME!
123 Address Street
Anywhere, CO Zip
Compliments of:
Molly Curley
Broker Associate, Keller Williams
719-589-3465 office/ 719-588-1648 cell
www.soldbymolly.com
THAT'S RIGHT!
I'm trying to make home books for my listings!!! So super excited about this! I'm going to try and have my first one complete by the first of next week. I'll stick some pictures up so you can see.
If you or anyone you know that might be interested in one, please have them call me!!!
Friday, February 8, 2013
Dreaming of a Second Home
Is this something that you have ever thought about? Its true that in recent years many homeowners have struggled to maintain and hold on to their homes. And some have bought second homes in vacation areas that now wish they hadn't. Because of this reason, Real Estate inventory is at a high, and there are good deals out there. What does this mean for you? If this is an idea that you have been pondering, and with a combination of low prices, historically low rates, and the availability of homes, now many be the perfect time to make this dream a reality. Lets consider a few ways that it can be made to work:
1) Conventional Financing: Really the purchase of and financing of a second home is really no different from the purchase of a primary home. Some of the programs that offer little to no money down are not available with conventional financing. However, with conventional financing, Fannie/Freddie type loans offer as little as 10% down you can get your foot in the door.
2) CASH : Remember the saying "cash talks"? Cash buyers are desirable to sellers, as paying cash eliminates the usual financing contingencies. It can also shorten the time from offer to purchase. Something to remember though when paying cash: Re-sale time can present a limited pool for prospects if conventional financing is unavailable.
3) Rental Income: This is an area that you must proceed with great caution! Whether you are an investor and looking to supplement your income every month, or looking for a vacation rental, make sure that you are in a location where rentals are in demand. Don't just buy a home if your entirely dependent on the income to make it work.
4) Tax Benefits and Appreciation: This is another area you need to be cautious of the rules, eligibility and markets are always changing. But owning a second home can extend or even put you over the threshold for the benefits of deducting interest and taxes on your return. ALWAYS check with your CPA or tax pro or attorney to see how this may or may not effect you.
So if you think that you are in a position for second home ownership and are ready to find out more, please contact me. I will be happy to help you find the best way for you to reach you goal.
1) Conventional Financing: Really the purchase of and financing of a second home is really no different from the purchase of a primary home. Some of the programs that offer little to no money down are not available with conventional financing. However, with conventional financing, Fannie/Freddie type loans offer as little as 10% down you can get your foot in the door.
2) CASH : Remember the saying "cash talks"? Cash buyers are desirable to sellers, as paying cash eliminates the usual financing contingencies. It can also shorten the time from offer to purchase. Something to remember though when paying cash: Re-sale time can present a limited pool for prospects if conventional financing is unavailable.
3) Rental Income: This is an area that you must proceed with great caution! Whether you are an investor and looking to supplement your income every month, or looking for a vacation rental, make sure that you are in a location where rentals are in demand. Don't just buy a home if your entirely dependent on the income to make it work.
4) Tax Benefits and Appreciation: This is another area you need to be cautious of the rules, eligibility and markets are always changing. But owning a second home can extend or even put you over the threshold for the benefits of deducting interest and taxes on your return. ALWAYS check with your CPA or tax pro or attorney to see how this may or may not effect you.
So if you think that you are in a position for second home ownership and are ready to find out more, please contact me. I will be happy to help you find the best way for you to reach you goal.
Subscribe to:
Posts (Atom)