Five Great Things about Homeownership!

 If you’ve been on the fence about homeownership, now is the time to take a leap! Don’t let the negative press deter you from one of life’s greatest joys.

 

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord’s pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it’s predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you’ll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you “own” your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart’s desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It’s a great time to buy. Interest rates are at historic lows. We’re talking 4.0 percent instead of 6.0 or higher. This means big savings for today’s buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It’s time to get off the fence and into a home that is right for you!

http://www.tamp…

http://www.tampabayrealestate.idxco.com/i/6653/Safety_Harbor_Fl_Homes_Over_300000_Under_400000

69.6% of Americans say housing will influence their 2012 vote

Nov. 9, 2011 – Candidate positions on housing will be important considerations to 69.6 percent of Americans in the 2012 presidential and congressional elections, according to a new survey released by Move Inc., the oversight company of Realtor.com. This is especially true for Millennials (70.7 percent), the next generation of homebuyers.

According to the survey, 81.7 percent of Americans consider housing a critical piece of the national economic recovery. Nearly three quarters of Americans (73.1 percent) believe conditions for buying a home a year from now will be the same or worse than today, while 23.2 percent expect homebuying conditions to improve.

Helping homeowners avoid foreclosure remains a top housing priority for the next president’s first 100 days in office. One in three (30.9 percent) Americans today think helping homeowners avoid foreclosure should be the next president’s priority in the first 100 days in office. Keeping interest rates low (26.4 percent) ranked second and making more affordable mortgage credit available (14 percent) placed third.

However, views are mixed when it comes to increasing or decreasing the role of government in housing. One in three Americans (31 percent) said the role of government in housing should remain the same as it is today, while one in five (21.3 percent) said it should be increased. Forty-two percent said government’s role in housing should be reduced, especially Americans ages 35 to 64 (56.7 percent). Just over two-thirds (67.4 percent) of Millennials said the president and Congress should reduce or keep the role of government in housing the same.

Other survey results:

• While 27.3 percent of Americans plan to buy a home in the future, only two percent plan to purchase in the next 12 months, and 23.1 percent say they’ve delayed purchasing a home because of the real estate market in their area.

• Three factors – uncertainty about future prices, concern about the economy and jobs, and difficulty saving for downpayments – are causing buyers to delay their purchases, effectively reducing near-term demand.

• 55.1 percent of Americans postponing a home purchase lack money for a downpayment or closing costs. Some 52.5 percent said they’re concerned about their jobs or lack confidence in the economy as a whole. Half (53.1 percent) are waiting for home prices to stabilize or increase. More than one third (34.6 percent) said their inability to get credit or find affordable credit is a reason why they’re waiting to buy.

• Perceptions on affordability have deteriorated in the past 18 months. In March 2010, 45.4 percent said they thought a median income family could afford more than half (50 percent) of the homes for sale in their neighborhood. Today, only 32 percent said they think median income families can afford more than half.

• The number of homeowners who delayed selling a home (17.5 percent) has not grown in the past 18 months, and actually declined slightly (-1.7 percent), which suggests the pending supply of ‘visible’ homes is showing signs of stabilization. However, more homeowners ages 35 to 49 (22 percent) and those making $40,000-$49,000 a year (21 percent) said they’ve delayed selling their home in the past year as compared to other respondents. This may indicate growing families in need of more space are having a difficult time moving up as a result of today’s market conditions.

• Today’s homeowners are less tempted to sell in response to incremental price increases than they were in 2009. Price increases in June 2009 of 20 percent or less would have motivated 61.6 percent of homeowners to sell. Today, however, price increases of 20 percent or less would motivate 55.4 percent. Based on the survey, a 5 percent increase in prices today would motivate 11.7 percent of owners to sell their home.

• 61 percent of those who plan to buy a home say they’d be first-time homebuyers, and 76.6 percent are Millennials. Large majorities of Americans – Millennials included – believe their family must be happy in their home (94.1 percent), that they are very picky when it comes to finding a home (80.3 percent), and that their home defines them; it’s part of who they are (75.1 percent).

• Millennials and older Americans have different perceptions. While 40.9 percent of Millennials think they should spend 30 to 60 percent of their gross monthly income on housing, older Americans (56.4 percent) said they plan to spend less than 30 percent.

• 61.9 percent of Millennials think of their home as a place to live, compared to 24.8 percent who think of their home as an investment. Almost all Millennials (95.3 percent) say they think of their home as a place where they can retreat from the world and relax.

Visit us online at www.LivingTampaBayRealEstate.com

Homeownership Rate Rises After Two Years of Decline

After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time. In fact, according to Bloomberg, the third quarter rise is the first in two years
.
However, the 0.4 percent increase, which brought the homeownership rate to 66.3 percent for the third quarter, was not enough to post an annual increase. The current homeownership rate remains 0.6 percent below the rate recorded in the third quarter of 2010.

Furthermore, according to the Census report, when the current rate is seasonally adjusted – which brings it to 66.1 percent – it is “not statistically different from the rate last quarter” – an even 66 percent. Homeowner vacancy rates fell 0.1 percent in the third quarter arriving at 2.4 percent.

At the same time, rental vacancies rose 0.6 percent arriving at 9.8 percent.
Despite this shift, Capital Economics says in response to the Census findings, “The modest increase in the rental vacancy rate in the third quarter does little to alter our view that rental yields will soon rise above 5.5%, comfortably beating the yields available on Treasuries and equities.”

“Meanwhile, the homeownership rate remains at a level that suggests America’s love-affair with housing is still on the rocks,” Capital Economics adds.
About 85.8 percent of housing units were occupied in the third quarter
.
The region with the highest homeownership rate was the Midwest with a rate of 70.3 percent, while the lowest homeownership rate was seen in the West at 60.7 percent. The Northeast and South feel in between at 63.7 percent and 68.4 percent respectively. At 76.1 percent, West Virginia had the highest homeownership rate. The state was followed closely by Mississippi with a 70 percent homeownership rate.

The lowest homeownership rate was seen in the District of Columbia, where the rate for the quarter was 44.3 percent. New York followed with 54.4 percent.
Nevada and California – states hard-hit by the housing crisis – were also in the bottom five with homeownership rates of 55.3 percent and 55.9 percent respectively.

dare

How to buy a house with a reverse mortgage

Do you know that if you are 62 years or older you may be able to buy a house or a condominium using a reverse mortgage? A reverse mortgage allows you to get money from a lender, but you do not have to pay it back (or make any monthly payments) until you sell or die.

How does it work? Let’s assume you just sold your existing house and want to downsize to a smaller house or a condominium unit. You have $300,000 cash from the sale, and since you qualified for the up-to-$500,000 exclusion of gain, you will not have to pay any capital gains tax.

Your new property will cost approximately $300,000. You are retired and do not have a current, steady stream of income other than your modest retirement fund. You might be able to get a traditional mortgage but you will probably have to come up with a large deposit – maybe as high as 30 percent of the sale price.

This will significantly drain your finances and affect your current lifestyle. What about a reverse mortgage?

You could consider the FHA Home Equity Conversion Mortgage, which is the only federally insured reverse mortgage available.

To qualify, you must be at least 62; if you are buying with a spouse, both of you must meet the age requirement. The house you buy must be your principal residence and you must certify that you will live in the house within 60 days of obtaining the loan. Although single-family residences and properties with two to four units are eligible, cooperative housing is not. And if you are considering buying a condominium unit, make sure that the entire condominium association is FHA-certified.

You (and your spouse, if applicable) will be required to meet with an approved credit counselor because there are significant legal and financial implications to such a mortgage. If you plan to leave your house to your children, for example, a reverse mortgage may leave little or no equity should you live a long time. Additionally, there are costs involved in such a transaction, although in many instances, they can be included in the amount of the loan. A counseling certificate must be submitted to the lender before closing.

You must use your own cash for the difference between the amount of the reverse mortgage and the sale price. Sellers can pay such costs as transfer tax, real estate commission, title search and other fees typically paid by a seller, but seller credits or set-asides for repairs will not be permitted.

How much will you be able to get by way of the reverse mortgage? That depends on a number of factors, primarily the age of the youngest borrower, the interest rate, the ZIP code and whichever is lower – the actual sales price or the appraisal. Why ZIP code? Because there is a maximum claim amount, which is linked to the FHA loan limit on single-family dwellings. That limit varies by state, county and even city. For example, in the District of Columbia, Arlington, Alexandria, Bethesda and Gaithersburg, the current limit is $625,500. In other areas, it ranges from $271,050 to $494,500.

Several online sites have very helpful loan calculators that will assist you in determining how much money you will need. I took our example, and plugged in a D.C. ZIP code and the ages of husband and wife in the mid-70s. According to the calculator, I was able to get a reverse loan of $198,187 for a standard, fixed-rate reverse mortgage. That means I will need a little over $100,000 to buy that $300,000 property.

Is a reverse more favorable than a regular mortgage? Yes, for two reasons: First, I will still have almost $200,000 left from the earlier sales proceeds. But more important, I will not have to make any mortgage payments. The bulk of a regular mortgage payment is the portion that goes to interest. For example, if I were to get a 30-year fixed loan for $200,000 at 4.25 per cent, my monthly payment would be $975 – money I am saving with the new reverse loan.

When does the loan come due? When you move out or die. At that time, you or your estate will either have to pay off the then outstanding mortgage – which will be much higher than the original loan, since interest will be added yearly – or sell the property. But one thing is clear: Neither you nor your heirs will ever have to pay more than the value of the house; that’s what FHA guarantees, since it has to pay any excess.

A reverse mortgage has many merits, but there are also many negatives. Educate yourself carefully; this may be the most expensive project you ever do.

Upturn in Florida Home Sales a Welcome Surprise!

TAMPA, Fla.  Sept. 1, 2011 – One of the first U.S. states to have its economy crushed by the U.S. housing market recession is now experiencing a rather happy surprise – its housing market is undergoing an upturn.

Despite an unemployment rate of 10.7 percent, which is higher than the national rate of slightly over 9 percent, enough people are buying houses in Florida, especially in the Miami area, so that the state’s housing market is no longer considered an imminent problem by housing and regulatory agencies.

What makes this even more unique is the fact that the status of Florida’s housing market seems to be in the opposite condition of the national housing market.

End of July statistics by the U.S. Department of Commerce show that total sales of newly built homes in the U.S. declined for the third consecutive month. Total sales in July fell almost one percent.

On another housing market matter, Standard and Poor’s (S&P), the rating agency which created a global storm by downgrading U.S. credit rating in early August, is currently being investigated by the U.S. Department of Justice to see whether or not S&P mis-rated home mortgage securities. S&P declined to be interviewed by Xinhua for this story.

With all of the above fiscal-related problems negatively affecting the U.S. housing market, how are the Miami and Florida housing markets now having success? Todd Nordstrom, a Realtor for Keller Williams Realty in Miami Beach, got the answers.

“The recent building boom has brought a tremendous increase in residents to the (Miami) downtown areas. At this time, approximately 85 percent of all condominiums built in the last boom are currently occupied, which is fueling new restaurant and entertainment options. Foreign nationals account for over 50 percent of all sales in the (Miami-Dade) county,” said Nordstrom.

According to Nordstrom, “foreign nationals with cash due to rising currencies” were attracted to Florida by its lower home prices. They are mostly nationals from Brazil, one of a few countries that have witnessed rapid economic expansion in the past decade despite the recession that hit the U.S. and other major industrialized countries.

A spokesman for RealtyTrac, which publishes the monthly U.S. Foreclosure Market Report, also gave its explanations for the housing boom in Miami and Florida.

“We believe a slowdown in foreclosure activity, that started 10 months ago because of problems with foreclosure paperwork and documentation, is actually helping the Miami and Florida housing markets to experience this upturn,” said Daren Blomquist of RealtyTrac.

Miami and Florida’s good-fortune housing market environments have happened elsewhere in the U.S. – most notably in Phoenix, Arizona – and “prices have passed the tipping point where buyers are willing to jump in, and the temporary lull in the foreclosure activity has helped to boost buyer confidence as well,” Blomquist said.

Yet there are two other possible reasons for Miami and Florida’s upturn in their respective housing, according to Brad Sullivan, a spokesman for the U.S. Department of Housing and Urban Development (HUD).

“Florida/Miami has a relatively high concentration of retirees that may contribute to the demand for housing, relative to states/metro areas with a higher share of unemployed persons. The Southeast in general was/is growing faster than many other parts of the country – the upper Midwest, for example,” noted Sullivan.

The Miami-Dade housing market has had 12 consecutive quarters of increased sales. Condominium and home sales in the Miami-Dade area rose almost 50 percent in the second quarter of 2011.

The Internet is another source for would-be homebuyers to refer to if interested in buying a house in Florida. RealtyTrac.com and Foreclosure.com, which has monthly charges for customers who are given a grace period of seven days without fees, allow Internet users to examine Florida foreclosure records. Another website, Equator.com, does the same, but for no charge at all to customers.

While the Federal Housing Finance Agency (FHFA) is considering making tens of thousands of government-owned foreclosed homes into rental units, the medium price for a single-family home in the West Central Florida region dropped 3.2 percent from June to July. The medium price for such a home is now 125,000 U.S. dollars.

According to S&P’s Case-Schiller home price index, from June of 2010 to June of 2011, Tampa had the largest decrease in the price of a single-family home than anywhere else in the U.S. In that time span, the price of a home in the region of Tampa declined by 9.5 percent.

When RealtyTrac released in late July its mid-year report of the 20 metropolitan areas in the U.S. that had the most foreclosures, only one Florida area – Cape Coral/Fort Myers, which rated at 12 – was listed. One year ago, Florida had nine areas and cities listed in the top 20 of RealtyTrac’s listing.

But in Washington D.C., a number of federal agencies have churned out data and reports about the housing market that seem to conflict – and the upturn in the Miami and Florida housing markets is no exception.

On Wednesday, the FHFA issued a 83-page report about the status of housing markets all throughout the country, which stated that Florida’s housing market was down 8 percent in the second quarter of 2011 compared with the same period of last year.

Yet Andrew Leventis, a senior economist for the FHFA, admitted that all is not glum for the Miami and Florida housing markets.

“The strength (of both housing markets) is that there are incredibly affordable price levels for houses and that interest rates are at historic lows. If you want to buy a house in Florida and you have good credit, there’s a good chance that you can get a 30-year loan, which Americans love to do. There’s a lot of inventory (i.e., unsold homes) out there,” noted Leventis.

Miami-Dade County is not the only area of Florida’s housing markets that is now experiencing robustness. In Orange and Seminole counties, both located in the middle of Florida, Realtors note that there is anywhere from four to five months of backlog inventory houses available – meaning that all types of homes, from single- family houses to mansions, are available to would-be buyers.

In Leon County, only 9 percent of all homes available for purchase were sold in 2010, yet 2011 figures showed that this statistic is on the rise.

DataQuick.com, a website which posts real estate news and custom data, reported that in the immediate Miami metropolitan area, the number of foreclosures decreased to it’s lowest level since 2007.

 

Call Joanne Or Bob For All Your Real Estate Needs at  - (727) 418-8850  or  (813) 814-0568

 

Visit us at -  www.LivingTampaBayRealEstate.com

The Sign of Success is The “SKI TEAM”

Mortgage rates break records again!

http://seg.sharethis.com/getSegment.php?purl=http%3A%2F%2Flivingtampabay.wordpress.com%2Fwp-admin%2Fpost-new.php&jsref=&rnd=1315928709990

Mortgage giant Freddie Mac reports that mortgage rates set new record lows this week, as concerns over the European debt crisis and a weak U.S. employment report for August sent investors fleeing to the relative safety of Treasuries and mortgage-backed securities that fund most home loans. But a separate survey by the Mortgage Bankers Association showed demand for purchase loans remaining “at extremely low levels” last week, close to lows last seen in 1996. Rates on 30-year fixed-rate mortgages averaged 4.12 percent with an average 0.7 point for the week ending Sept. 8 — a new low in records dating to 1971, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That’s down from 4.22 percent last week and a 2011 high of 5.05 percent in February. Rates on 15-year fixed-rate mortgages averaged 3.33 percent with an average 0.6 point, down from 3.39 percent last week and a 2011 high of 4.29 percent seen in February. That’s a new low in records dating to 1991. For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.96 percent with an average 0.6 point, unchanged from last week’s record low of 2.96 percent. That’s down from 3.56 percent at the same time last year and a 2011 high of 3.92 percent in February. The 1-year Treasury-indexed ARM loan averaged 2.84 percent with an average 0.6 point, down from 2.89 percent last week and a 2011 high of 3.4 percent seen in February. “Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week,” said Freddie Mac chief economist Frank Nothaft in a statement. “On net, the economy added no new jobs last month and was the weakest reading since September 2010. Meanwhile, the unemployment rate remained at 9.1 percent, marking its 31st consecutive month of being above 8 percent, the longest such stretch in 70 years.” Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans was virtually unchanged last week compared to the week before, and down 13.5 percent from the same week a year ago. Requests for refinancings were down 6.3 percent from the week before, and were down more than 35 percent from a year ago, the MBA said in releasing the results of its Weekly Mortgage Applications Survey. Refinancing requests nevertheless accounted for 77.1 percent of all mortgage applications. Requests for ARM loans accounted for 7.1 percent of applications. In an Aug. 19 forecast, MBA economists predicted rates on 30-year fixed-rate mortgages will rise to an average of 4.6 percent during the final three months of this year, and continue a gradual rise next year to an average of 5.2 percent during the fourth quarter of 2012.

 

Call Today For All Your Real Estate Needs!

As a Realtor- in the Tampa Bay, We show quite a few properties on a regular basis.

I have heard so many people say how unhappy they are with the properties that they purchased and how they can’t wait to sell them or they can’t wait until their lease is up to find something better. Well here are a few things to consider before you make your purchase or rental decision. I always compare them to choosing a spouse. This is a decision that you have to live with for the rest of your life.

When I show properties its always somehting missing. Either the master bedroom doesn’t have a bathroom or the yard is not fenced, or the bedroom is too small.

This is true for spouses as well as homes!!

You know its the right one when you see it. You can feel it!

You want to know the history of it! Why hasn’t it been rented?

You ask the same questions that you asked before to make sure that you get the same information and that the answers are still the same.

You look it over and over and over to see if anything is wrong with it.

Will it make you happy? Does it have enough sunlight? Is this a good Investment?

If you are ready to get a property- make sure that it has everything that you are looking for.

Don’t settle- don’t tell yourself that “I think I can live with this” when you know its not what you really want. You will end up being miserable in the end.

I can tell when my clients are really happy and when they just get tired and choose something for the sake of time! Please don’t do this there is something for everybody…..the right price, the right neighborhood, the right size. Just take your time and choose wisely!

(727) 418-8850 or (813) 814-0568

 

 

 

 

 

 

 

www.LivingTampaBayRealEstate.com

Congress Urged to Restore Home Buyer Tax Credit

 

Daily Real Estate News | Thursday, September 08, 2011

 

The National Mortgage Complaint Center, a consumer advocacy group, is asking Congress to introduce legislation to restore the federal tax credit for home buyers in order to “rescue the U.S. residential real estate markets” and prevent home prices from dropping any further. 

The group is asking the tax credit be increased to $15,000 and be available to every qualified home buyer, including investors, first-time buyers, and repeat buyers. 

“With the enormous devaluations we have seen in most U.S. residential markets, we need to stop the hemorrhaging, and do something meaningful to stabilize one of the most vital aspects to the U.S. economy — our residential real estate markets,” the National Mortgage Complaint Center said in a statement. 

Last year, Congress offered a home buyer tax credit for first-time and repeat buyers to help spur home buying. The maximum allowable credit for first-time buyers was $8,000 and $6,500 for repeat buyers. Congress is not currently considering any new legislation to expand the home buyer tax credit. 

 

Call Joanne & Bob Rudowski for more information

(813) 814-0568

Visit us at

www.LivingTampaBayRealEstate.com