Buying a home is a way to increase equity through making mortgage payments. Another potential positive is price appreciation of the home. These are financial benefits of owning a home.
There are also some costs that associated with buying a home that people need to be aware of.
Inspection and appraisal costs usually paid by the buyers.
Closing costs are typically 2% to 4% of the mortgage amount.
Taxes are also costs collected on the home and they tend to increase over time.
Insurance is another cost that will most likely rise over time and lenders will require home insurance.
Community fees (homeowners and condominium fees) are typically paid quarterly and/or monthly.
Utility bills, lawn maintenance and continuious repair bills are also things to take into consideration.
As a local Realtor, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
http://MYsouthFLrealestate.com
Referrals are appreciated and welcomed.
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Showing posts with label first time homebuyer. Show all posts
Showing posts with label first time homebuyer. Show all posts
Saturday, June 2, 2012
Saturday, August 13, 2011
Is Now A Good Time To Buy A Home?: Homes For Sale: Homes For Rent
Is now a good time to buy a home? I think the answer is yes IF: you have a stable job and expect to live in the home for 10 years or more. Yes, interest rates could fall a bit more and prices as well-- but if you plan to live in your new home for 10 years or more, I think the benefits of buying near-term would outweigh the costs at this time.
Let's look at some of the factors in making such a decision:
Interest rates: Now is a good time to buy on interest rates alone. As mortgage interest rates rise, purchasing power falls. Rates are near historic lows right now.
The Federal Reserve will eventually raise some benchmark rates and it also has a large portfolio of mortgage securities to sell off in the future-- this will put upward pressure on rates.
Also, inflation is beginning to rise and some analysts think it will continue to creep upward. As inflation increases, lenders will want to hedge against the US Dollar being worth less-- and will raise interest rates as a means to that end.
Home Prices: The banks are trying to keep home prices from plummeting by slowly releasing distressed properties into the market. The predictions on home prices vary from a minimal decline from here to another 25% decrease. But, this is a very local issue that needs to be looked at carefully in the area of interest.
When the market does hit a bottom, it will most likely not rally like we had seen in the "bubble" period. The real annual return on a home is approximately the rate of inflation. Therefore, homebuyers should not be investors looking to "flip" homes for a profit, in my view.
Lastly, even if prices were to decline further a rising interest rate might wipe away as much purchasing power if you wait.
Mortgages: Banks have tightened their lending requirements post-bubble. A bigger downpayment is required and your credit history is very important. Currently the government guarantees over 90% of the mortgages in the market. The government will most likely begin backing away from this practice and when it does will most likely require about 20% as a downpayment.
Financial Situation: The housing market will most likely continue to be soft in the coming years. The sale of a home will not be quick or easy, most likely. It is important to purchase a home you feel you will be able to afford for a while and you should not stretch your budget to afford it.
Also, the buy versus rent argument goes that rents may rise while your fixed mortgage costs will not. A fixed interest rate mortgage is a good hedge for inflation because inflation will cause wage increases; this coupled with your fixed costs will help make it easier to afford the payments.
Again, if you are economically stable and plan to live in the home for 10 years or more, I think now is a good time to take advantage of the current advantageous affordability levels of homeownership.
If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Let's look at some of the factors in making such a decision:
Interest rates: Now is a good time to buy on interest rates alone. As mortgage interest rates rise, purchasing power falls. Rates are near historic lows right now.
The Federal Reserve will eventually raise some benchmark rates and it also has a large portfolio of mortgage securities to sell off in the future-- this will put upward pressure on rates.
Also, inflation is beginning to rise and some analysts think it will continue to creep upward. As inflation increases, lenders will want to hedge against the US Dollar being worth less-- and will raise interest rates as a means to that end.
Home Prices: The banks are trying to keep home prices from plummeting by slowly releasing distressed properties into the market. The predictions on home prices vary from a minimal decline from here to another 25% decrease. But, this is a very local issue that needs to be looked at carefully in the area of interest.
When the market does hit a bottom, it will most likely not rally like we had seen in the "bubble" period. The real annual return on a home is approximately the rate of inflation. Therefore, homebuyers should not be investors looking to "flip" homes for a profit, in my view.
Lastly, even if prices were to decline further a rising interest rate might wipe away as much purchasing power if you wait.
Mortgages: Banks have tightened their lending requirements post-bubble. A bigger downpayment is required and your credit history is very important. Currently the government guarantees over 90% of the mortgages in the market. The government will most likely begin backing away from this practice and when it does will most likely require about 20% as a downpayment.
Financial Situation: The housing market will most likely continue to be soft in the coming years. The sale of a home will not be quick or easy, most likely. It is important to purchase a home you feel you will be able to afford for a while and you should not stretch your budget to afford it.
Also, the buy versus rent argument goes that rents may rise while your fixed mortgage costs will not. A fixed interest rate mortgage is a good hedge for inflation because inflation will cause wage increases; this coupled with your fixed costs will help make it easier to afford the payments.
Again, if you are economically stable and plan to live in the home for 10 years or more, I think now is a good time to take advantage of the current advantageous affordability levels of homeownership.
If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Also, text me your name and e-mail address if you would like home search capabilities.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Tuesday, September 28, 2010
July 2010 Case-Shiller Report: US Home Prices Rise 0.6%
The Case-Shiller home price index tracks single-family homes in 20 major US cities. The index showed a 0.6% rise in prices during July 2010 from June 2010. Prices increased 3.2% on a year-over-year basis.
Prices rose in 12 of the 20 markets on a year-over-year comparison during July 2010. The only South Florida market included in the index is Miami; the market was up 0.4% in July 2010 over the previous year, according to the Case-Shiller home price index.
The 3.2% year-over-year increase for July 2010 compares with 4.2% for June 2010. This poses a question for the direction of the US home market:
Are we seeing continued growth or a trend toward slowing year-over-year growth-- thus, leading towards another downturn?
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Prices rose in 12 of the 20 markets on a year-over-year comparison during July 2010. The only South Florida market included in the index is Miami; the market was up 0.4% in July 2010 over the previous year, according to the Case-Shiller home price index.
The 3.2% year-over-year increase for July 2010 compares with 4.2% for June 2010. This poses a question for the direction of the US home market:
Are we seeing continued growth or a trend toward slowing year-over-year growth-- thus, leading towards another downturn?
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sunday, September 19, 2010
Housing Market- A Look At Income And Valuations
There has been so much written and talked about concerning when the housing market will reach the bottom. One way of valuing real estate is to compare it with income.
Ned Davis research and CNBC published a chart recently that looked at valuation ratios of home prices to median income from 11/30/1976 to 3/31/2010. The chart showed a high of about 5.2 times in 2005 and a low of about 3.5 times on during the 1983 recession.
The mean valuation multiple was 4.1 times during the period described above. As of March 2010, the ratio stood at 4.3 times. The recent stabilization can be attributed to the recent federal government intervention.
Does this mean we are near the bottom as we approach the mean valuation multiple?
Well, a few factors should be discussed. One is the federal government has let some of its incentive programs expire, such as the first time homebuyer credit.
Another factor is psychology of the consumer. With unemployement holding steady in the mid-9% range and continued increases in distressed properties could damage consumer sentiment. The most recent US Consumer Sentiment Index hit 66.6 in September from 68.9 in August; this was the lowest level in a year.
With the housing bubble continuing to deflate, unemployment being at sustained high historic levels and tougher lending requirements, it's not unlikely that we will see the valuation multiple dip below the average in the near-term.
Nonetheless, if you are a first time homebuyer and plan to live in the home for a sustained period of time, now might be a good time to purchase a home. If interested, please see our post on the advantages of homeownership versus renting. Mortgage rates are near historical lows and it is still a buyer's market.
Please feel free to contact me about South Florida real estate. I represent buyers, sellers, renters and landlords. I also work with distressed homeowners and investors.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
Ned Davis research and CNBC published a chart recently that looked at valuation ratios of home prices to median income from 11/30/1976 to 3/31/2010. The chart showed a high of about 5.2 times in 2005 and a low of about 3.5 times on during the 1983 recession.
The mean valuation multiple was 4.1 times during the period described above. As of March 2010, the ratio stood at 4.3 times. The recent stabilization can be attributed to the recent federal government intervention.
Does this mean we are near the bottom as we approach the mean valuation multiple?
Well, a few factors should be discussed. One is the federal government has let some of its incentive programs expire, such as the first time homebuyer credit.
Another factor is psychology of the consumer. With unemployement holding steady in the mid-9% range and continued increases in distressed properties could damage consumer sentiment. The most recent US Consumer Sentiment Index hit 66.6 in September from 68.9 in August; this was the lowest level in a year.
With the housing bubble continuing to deflate, unemployment being at sustained high historic levels and tougher lending requirements, it's not unlikely that we will see the valuation multiple dip below the average in the near-term.
Nonetheless, if you are a first time homebuyer and plan to live in the home for a sustained period of time, now might be a good time to purchase a home. If interested, please see our post on the advantages of homeownership versus renting. Mortgage rates are near historical lows and it is still a buyer's market.
Please feel free to contact me about South Florida real estate. I represent buyers, sellers, renters and landlords. I also work with distressed homeowners and investors.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
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