Home ownership becoming more appealing than renting

Rent versus own- that is the question…

Declining home prices are helping to close the gap between the costs of renting versus the cost of owning a home, making homeownership more appealing and affordable in many metropolitan markets.

 

·      Historically, after-tax mortgage payments have averaged 26 percent more than rent payments, according to Greet Street Advisors.  At the peak of the current real estate cycle, mortgage payments reached as high as 66 percent more than rent payments.  However, by the end of 2008, mortgage payments averaged just 24 percent more than rent payments, the narrowest gap since 2001.

 

·      In Los Angeles, mortgage payments averaged 60 percent more than rent payments between 1990 and 2008, but have since fallen to only 30 percent more than rent payments.

 

·      Some economists predict mortgage rates could fall to 4.5 percent, which could push mortgage payments to an average of 14 percent more than rent payments, a level last reached in 1998.

 

·      In some markets, well-qualified home buyers are finding that they can pay less for a mortgage payment than they spend on rent.

 

·      Although mortgage payments in some areas may be slightly higher than rent payments, the long-term benefits of homeownership outweigh the costs.  Homeowners can deduct the interest they pay annually on their mortgage.

 

·      Additionally, homeowners can build up equity in their homes over the long term. Historically, homeowners who remain in their homes for at least five years have an average annual rate of return of nearly 12 percent.

 

·      Unlike rent payments, a mortgage can be paid off, enabling the homeowner to live in a house free and clear.

 

To read the full story, please click here

 For more articles:

New Home Buyer Fence Sitters may Lose out to Market

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

 

 

 

 

Questions on the $8000 Fed Tax Credit?

Confused about tax credits

Confused about the qualifications for the $8,000 federal tax credit for first-time home buyers?  Need help understanding the differences between the $7,500 tax credit signed into law last year, and the $8,000 tax credit added this year?

 

Well here’s the scoop plain and simple~

 First-time home buyers – those who have not owned a principal residence for three or more years – received two tax credits over the last two years.  One was passed and signed into law in 2008, the other in 2009.

 ·      The 2008 credit is a tax credit for first-time home buyers who purchased a house between April 8 and Dec. 31, 2008.  The home buyer may claim 10 percent of the home’s purchase price, as a credit, capped at $7,500.  Although called a “tax credit,” this homeowner benefit actually is a 15-year interest-free loan, which must be paid back in equal installments over a 15-year period.

 ·      The 2009 credit is for 10 percent of the home’s purchase price, capped at $8,000.  This credit is for first-time home buyers who purchase a house between Jan. 1 and Nov. 30 of this year.  The $8,000 tax credit does not have to be repaid.

 

·      In both cases, the home buyer may choose to claim the tax credit on either the 2008 or 2009 federal tax return.

 

·      The tax credits are offered on a sliding scale, based on income.  Individuals with annual incomes of $75,000 or less may be eligible for the full amount of the tax credit.  Married couples filing jointly must earn less than $150,000 to qualify for the full amount.  Individuals earning between $75,000 and $95,000, and married couples filing jointly who earn between $150,000 and $170,000, may be eligible for a smaller portion of the tax credit, but not the full amount.  The tax credit is not available to individuals who earn more than $95,000 or married couples filing jointing who earn more than $170,000.

 

·      Nonresident aliens, homes outside of the United States, and homes inherited, gifted, or acquired from a relative are exempt from the tax credits.

 

To read the full story, please click here

 

The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

  

New Home Buyer Fence Sitters may lose out on the market?

Fixed-rate mortgages of Four percent,  zero-down payment requirements, and a 30-40 percent break on the market value of the house appear to be what many “on the fence” home buyers are waiting for before they consider purchasing a home.

WE ARE THERE!

KEEP THIS IN MIND
• According to a study of more than 700 self-described “on-the-fence” buyers, 44 percent responded that they haven’t yet committed to purchasing a home because they are waiting for lower mortgage rates.  (WE AREW THERE NOW) 

The study, conducted by the National Association of Home Builders’ research subsidiary,  found that 41 percent of undecided buyers are unsure if they could qualify for financing.  Another 38 percent reported they expect to see home prices decline further. 

Again people we are there now- my optionion- people are gambleing if they wait longer. The interest rates are good now- even if and when homes will go down- I believe the rates will go up again.

• The study found that concerns about declining property values were most prevalent among home buyers in the Western region, while buyers in the Northeastern and Midwestern states were more concerned with lower mortgage interest rates.

• Of the potential home buyers surveyed, the mortgage rate that seemed most favorable and would be most effective in persuading consumers to buy now is a 30-year, fixed-rate mortgage at 3 percent.  Now reate are closer to the mid 4’s.  According to Freddie Mac, interest rates on 30-year, fixed-rate mortgages averaged 5.25 percent for the week ending Feb. 5.
• Survey respondents said guarantees by home builders that their loan applications would be accepted with verifiable proof of income and a “fair” credit score ranked six times more effective than standard application procedures.
• Price concessions, such as a 10-percent discount below market value, appeared to be the most compelling option for on-the-fence buyers.
To read the full story, please click here

To put this into perspective- if you plan to stay in your home for awhile- waiting can price you out of the market.   Home prices are already good.   Get in now while interest rates are still low.  They are the lowest they have been in over 30 years.   While people gamble and wait for prices to drop, they may lose the ability to qualify for a loan if rates climb.  Buyers have to live somewhere and paying rent can be the same price as paying on a mortgage.  Have a CPA run Numbers for you on tax savings with owning a home.  At least once you buy, you are gaining equity for the future when prices come back up.

 

More articles:

Snag a Deal on a Short Sale

Questions on the 8,000 Federal Tax Credit

 

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Re-locations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Plunging Home Prices good news for 1st time home buyers

Good news for First Time Home Buyers! There are great deals out there.

We have found that at the under $250,000 price range that there are multiple offers all competing for the best deals. We have found that buyers who shop with a Realtor have a better chance getting a house than those who do not. Most times than others- First Time Home Buyers  don’t see the listing until it is too late. By the time they put in an offer, they are already beat out.

Read the article below on some great stats.

NATIONAL ASSOCIATION OF REALTORS® (NAR), the median home price nationwide in December was down 15 percent to $175,400. With current interest rates at or near historic lows, borrowers with a 10 percent down payment could save $254 per month on a median-priced home compared with a year ago.

•  The percentage of First Time Home Onwers that could afford to buy an entry-level home in California stood at 53 percent in the third quarter of 2008, compared with 24 percent for the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

 

• The minimum household income needed to purchase an entry-level home at $287,760 in California in the third quarter of 2008 was $56,100, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment. The monthly payment including taxes and insurance was $1,870 for the third quarter of 2008.

To read the full story, please click here

For more reading:

Snag a Deal on a Short Sale

Home Ownership more appealing than renting

New Home Buyer Fence Sitters may Lose out to Market

Questions on the 8,000 Federal Tax Credit

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

How to Find out if your Landlord is in Foreclosure

Finding out if your prospective landlord is about to go into foreclosure simply a good idea for any tenant who is contemplating renting. You don’t have to wait until the Sheriff shows up at your door with an eviction notice. You can be notified immediately when a Notice of Default is filed by your landlord’s lender, indicating that a foreclosure process has begun.

Here is how to find out if your landlord is in foreclosure.

• Call a local title company and ask for customer service.
• Give the customer service rep the property address and ask for a free copy of the first  deed of trust to be emailed to you.
• Print the copy of the deed of trust, because you will need to know the document number, book, page, name of beneficiary (the lender) and name of trustor (the landlord).
• Go to http://www.foreclosureforum.com/forms/request_notice.pdf to access a free Copy of Notice of Default.
• On your computer, fill in the blanks with the information above from the deed of trust, and enter your name and address in the space provided.
• Print the Request for Copy of Notice of Default.
• Sign it in front of a notary.
• Attach a check for $11 made payable to the Sacramento County Recorder.
• Mail it to the Sacramento County Recorder, P. O. Box 839, Sacramento, CA 95812-0839.

The Request for Copy of Notice of Default will be recorded upon receipt. Then, if your landlord’s lender files a Notice of Default, you will receive a copy of it in the mail. Foreclosures in California take about 3 1/2 to 4 months to complete. This time period should give you ample opportunity to work out the problem with your landlord. You might also consider asking if your security deposit can be applied to rent because once the foreclosure is complete, your lease is no longer valid, and you might not get your security deposit back.

If you prefer to handle the entire procedure in person, you can go to the Sacramento County Recorder’s office at 600 8th Street (at the corner of 8th and F) and pull a copy of the deed of trust. Take the Request for Copy of Notice of Default with you and fill it out at the Recorder’s office. Get it notarized, pay your eleven bucks, and you’ll go on record that afternoon, providing you arrive before 3 PM. The Sacramento County Recorder’s office is open from 8 AM to 5 PM, Monday through Friday. Same-day recording hours are from 8 AM to 3 PM.

Tenants in foreclosure should know that California law gives tenants the right to receive a 60-day notice.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls