Monday, February 21, 2011

Why You Should Buy Versus Rent


When buying or renting any house, there are always important factors to keep in mind.

Some positives of owning your own property are building equity, tax deductions, and maintaining the same housing payments. The negatives of renting would include the fact that it's less stable, there is no equity or tax deductions, and lack of freedom to remodel your rented space.

If you decide to buy, here are some key points to remember.

Spend only 28 to 30 percent of your income on housing. And before buying a house, make sure you realize your housing costs will include property taxes, homeowners insurance, and repairs. The necessity to pay for repairs can be naively ignored because repairs don't seem automatic. But with homes, there always comes a day when the toilet won't flush, the hot water heater goes out and floods the basement, or a tree branch falls on the roof. Repairs must be considered a part of the cost of owning a home; usually not of renting. And a person needs to set money aside money each month for the times when the repairs will arise.

When trying to measure the costs of homeownership versus the cost of renting a home, there's an official tool to help you. The Federal Reserve Bank of Cleveland released a Rent or Buy Calculator that runs an internal simulation of cost scenarios, for both renting and owning a home, based on the information you put in about your home and mortgage.

From the data, it will tell you how much, if at all, you will financially gain from owning a home versus renting.

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Friday, February 18, 2011

Baby Boomers Approach 65, Struggle Nearing Retirement


Baby Boomers, born between 1946 and 1964, is America’s largest generation. With 79-million members they represent 26 percent of the U.S. population. And they face a retirement problem that is just as big. For the generation that sought to change society, many are prolonging retirement due to economic insecurity.

But why prolong a relaxing retirement for that reason when you have affordable homes and communities here on Staten Island, specifically for senior citizens?

Take for example the Club at Clove Lakes, an upscale, exclusive retirement community for discerning buyers over the age of 55+. Why not retire to such an ideal, relaxing place, one that offers luxurious amenities, such as a fitness center, library, games room, suana, and lap pool? The outdoor gazebo and rooftop terrace provide breathtaking views. The services offered here at the Club are impeccable! Just a few to mention include maid service, wake up and reminder service, transportation, massages, and maintenance.

Retirement doesn't sound so bad now after all, does it?

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Thursday, February 17, 2011

Brights Return to the Color Palette


Excerpt from Brights Return to the Color Palette
By Stephani L. Miller, CUSTOM HOME Magazine


During periods of economic hardship, consumers typically crave comfort and a sense of calm within a storm of uncertainty, and their color choices veer toward subdued neutrals and natural hues that soothe and ground the mind. As conditions improve, a restlessness and a desire to experiment with color emerges, and they begin looking for inexpensive ways to refresh and update their living spaces, infusing them with energy and (cautious) optimism.

In general people are starting to branch out in their color choices, although they aren't quite ready for bold steps, says Mark Woodman, who is the incoming president of the Color Marketing Group, and U.S. color expert for London-based color consultancy Global Color Research. "Color is returning because people can't live without it anymore."

Also included in this article, Jackie Jordan, director of color marketing for paint manufacturer Sherwin-Williams, discusses four new color collections for 2011. Benjamin-Moore even introduces an inspiring color palette for 2012.

While brighter and more saturated hues are emerging in color palettes, the focus for the next few years will be on rethinking and repurposing existing home features through small updates, rather than starting over from scratch, the experts predict. Homeowners and designers are more likely to work stronger colors into homes as accents, applying them to a single wall or architectural details with paint, or through furnishings and accessories.

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Wednesday, February 16, 2011

Housing Remains Highly Affordable For Seventh Consecutive Quarter

Interest rates dipped to their lowest in two decades and housing affordability remained near its highest level nationwide for the seventh consecutive quarter, according to this article from Housing Zone.

"With interest rates remaining at historically low levels, and house prices starting to stabilize, homeownership is within reach of more households than it has been for almost 20 years...[T]hese favorable conditions are beginning to draw home buyers back into the market"

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Tuesday, February 15, 2011

American Still Believe in Homeownership

Nearly 8 in 10 Americans Still Believe Buying a Home Makes Good Financial Sense, according to this RISMedia article from last October. Although the article is a bit older, the economy continues to improve making this statement even stronger.

The article goes on to say:

"Despite economic uncertainty, 68% of those surveyed still believe now is a good time to buy a home; while that number is down from last year (75%), it’s up from 2008 (66%) and 2007 (59%). Lower home prices and record-low mortgage interest rates may be attracting buyers to the housing market—more than one-fourth of renters said they are thinking more about buying a home than they were a year ago. Sixty-three percent of renter respondents said that owning a home is a priority in their future, and nearly 40% said it was one of their highest priorities."

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Monday, February 14, 2011

First Home? Here's Help To Navigate the Purchase Maze

From an InMan News article:

A Portland, Ore.-based real estate broker has launched a national homebuyer education website.

FearlessHomebuyer.com walks first-time homebuyers through the real estate transaction process, from deciding whether or not to buy, to obtaining financing, to estimating fix-up costs. Husband and wife Dave and Darci Axness, principal broker and office manager, respectively, at Axness & Kofman Real Estate, launched the site in October.

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Friday, February 11, 2011

Rising mortgage rates cause surge in first-time buyers


An article from Professional Remodeler magazine found that "Rising mortgage interest rates have reignited first-time homebuyers’ interest in purchasing a home over the last several months, UPI reported. The rates for 30-year fixed-rate mortgages began to rise from record lows this fall, increasing from 4.17 percent to 4.83 percent between November and December.

The last time realtors saw this amount of interest by first-time buyers was in April, when the first-time homebuyer tax credit expired, a Freddie Mac survey found. Sales numbers support the trend: first-time homebuyers’ share of home purchases rose from 34.4 percent to 37.2 percent between October and November, according to the survey."

Read the rest of the article here: http://www.housingzone.com/pr/article/rising-mortgage-rates-cause-surge-first-time-buyers

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Thursday, February 10, 2011

FAQs About Mortgage Refinancing


Excerpt from FAQs About Mortgage Refinancing
By Holden Lewis, Bankrate.com


You have mortgage questions, and this article has the answers.

Bankrate senior mortgage reporter Holden Lewis recently answered borrower questions about home loans during a live chat on Boston.com. Bankrate is publishing the highlights of that Q&A session.

1. Should I tap my 401(k) to pay the mortgage?
Consult a financial planner on that one. Why borrow against your retirement savings to pay off a second lienholder of an asset whose value is declining?

2. Will lenders court an underwater borrower?
Yes, lenders seem reluctant to pick up underwater HARP refis. But sometimes they do it. You could try looking at the rate tables at Bankrate.com. Or, ask friends, family and co-workers for referrals to lenders. When you rate-shop during a short period, all of your mortgage inquiries are lumped together as one inquiry for credit-scoring purposes.

3. Can I refinance again after 3 months?
If anything blocks you from refinancing a 3-month-old loan, it would be the recorder's office. Back in 2003, mortgage recordings were backed up by months in many county recorders' offices, stalling refinances. As long as there's not a delay there, you should be able to refinance.

4. Why does my lender downgrade my credit score?
Ask the lender to show you the credit history part of the credit report. If there are any errors, ask the loan officer to get a "rapid rescore." There might be issues with credit card balances near the limit.

5. Does a second mortgage complicate my refinance?
The second lienholder will be reluctant to resubordinate -- that is, to agree to remain in the second lien position after you refi the first lien.

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Wednesday, February 9, 2011

The 6 must-have spaces in your next home


As home buyers start coming out of their fear of buying, they are thinking more about what their new homes need to have. This article from Better Homes and Gardens magazine finds that people are being more realistic in what they are looking for:

“Consumers are starting to give themselves permission to dream about a new home again and for the first time in several years actually are considering houses that are slightly larger than their existing homes,” said Jill Waage, editorial director for home content at the magazine.

“But they aren’t looking at something significantly larger. They want more space but it is driven by both function and finances,” she told an audience at the International Builders Show here earlier this month. “Their priority is a home they will enjoy. The new mantra is ‘I am spending my money, so make it count.’”

So what spaces are making the cut? Read the article and see!

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Tuesday, February 8, 2011

Tax Unfriendly States for Retirees

Staten Islanders are known for retiring off the Island to New Jersey, but this may be a mistake. New Jersey, it turns out is one of the least friendly states for retirees, in terms of taxation according to this Kiplinger's article.

The article's blurb on New Jersey places it amont the top ten most unfriendly states and has this to say:

Its nickname may be the Garden State, but New Jersey is a thorny thicket for some retirees. Median real estate taxes are the highest in the nation, according to the Tax Foundation. There are a few bright spots: New Jersey does not tax Social Security benefits and military pensions. It also allows residents 62 or older with incomes of $100,000 or less to exclude up to $15,000 ($20,000 for married couples filing jointly) of pensions, annuities and IRA withdrawals. Groceries, medicine and clothing are exempt from sales tax. The state imposes an inheritance tax on the transfer of real and personal property worth $500 or more, but bequests to family members are exempt

While Staten Island has been known for lack of retirement options, this is changing with projects such as The Tides at Charleston and The Club at Clove Lakes Park. It is definitely worthwhile for people who are thinking about retiring to reconsider a move to New Jersey. Staying local probably will be a better financial decision, not to mention staying near friends and family!

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Monday, February 7, 2011

6 Must-Do's Before Buying a Home


Excerpt from 6 Must-Do's Before Buying a Home
By Dana Dratch, Bankrate.com


You might be ready to buy a home, but are you armed with the knowledge you need? Here is a six-item checklist, including tips on two types of savings you need, plus advice about what's more important than buying a house for its resale value.

1. Strengthen your credit score.
The higher your credit score, the lower your down payment and monthly payments. A score of 700 to 720 will get you a good deal and 750 and above will garner the best rates on the market, says John Ulzheimer, president of consumer education at smartcredit.com and formerly of FICO, which pioneered credit scoring. Improve your chances by pulling your credit reports and ensuring you're not being unfairly penalized for old, paid, or settled debts.

2. Figure out how much house you can afford.
There are various rules of thumb that will help you get an idea of how much home you can afford. If you're using FHA financing, your home payment can't exceed 31 percent of your monthly income. For conventional loans, a safe formula is that home expenses should not exceed 28 percent of your gross monthly income. Improve your chances by trying on that financial obligation long before you sign the mortgage papers.

3. Save for down payment and closing costs.
Depending on your credit and financing, you'll typically need to save enough money to put anywhere from 3.5 percent to 20 percent down. Another cash expense: closing costs. Whatever your loan source, you'll also need money to pay closing costs, which run (depending on where you live), from $2,300 to $4,000. Improve your chances by searching out down payment assistance.

4. Build a healthy savings account.
Your lender wants to see that you're not living paycheck to paycheck. If you have three to five months' worth of mortgage payments set aside, that makes you a much better loan candidate. Improve your chances by setting aside money every month. For example, if you're buying a $250,000 home, aim to bank $520 to $625 per month.

5. Get preapproved for a mortgage.
For serious home shoppers, "the No. 1 thing is they better have everything in order," says Dick Gaylord, past president of the National Association of Realtors. That means that, before the real home shopping begins, you want to get financing in place, he says. Improve your chances by getting financing in place "before you walk through the first house," Gaylord says.

6. Buy a house you like.
If you're buying today for yourself and your family, you want a home that will make you happy for the next few years. Improve your chances by stepping back, and making certain you like the house.

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Friday, February 4, 2011

Housing Trends in Early 2011


Excerpt from Housing Trends in Early 2011
By Marcie Geffner, Bankrate.com


Experts have been able to identify some trends that will characterize the U.S. housing and home loan markets in early 2011. These are some helpful tips that you may want to keep in mind if you own a home or want to buy or sell one in the next few months.

Mortgage refinancing is expected to experience a "very steep drop" in 2011 compared with 2010, according to Michael Fratantoni, vice president of research and economics at the Mortgage Bankers Association in Washington, D.C. Homeowners who have ample equity, sterling credit, and steady employment probably refinanced at least once in 2009 or 2010, locking in low fixed rates and consequently, have little or no incentive to refinance again in 2011, Fratantoni says.

Also, now is supposed to be a great time to buy a home. Mortgage rates are low and prices have fallen. The combination makes dwellings relatively more affordable to buy. Plenty of homes are on the market, and inflation, presumed to be on the horizon, could boost home values over the long term.

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Thursday, February 3, 2011

Staten Island has 3 of Top 10 Green Neighborhoods in NYC


Excerpt from Green guide: Best places in the Big Apple for eco-friendly living
By Jason Sheftell, NY Daily News - Real Estate


With its bustling, car-filled streets making Manhattan among the most polluted areas in the city, green-seekers should head to the outer boroughs, where suburban-like neighborhoods put green-living first -- offering plenty of park space and less air pollution.

The complete list of the top 10 green neighborhoods, including statistics such as air index, population, hospitals, home sale value, etc. for each one, is available at the link provided. Here is where Staten Island's neighborhood's rank:

2. Tottenville, Staten Island
For Main Street living within the confines of the biggest city in the U.S., try Tottenville. Staten Island’s southernmost neighborhood is 1.7 square miles with a tiny downtown, old churches, a library, small boutiques and strong public schools. Large, 19th century homes dot the quiet streets where kids wearing Little League uniforms ride bikes home in the summertime and people wave at each other on the street. Everyone knows each other in this little neighborhood with beachfront parks and easy access to the Staten Island Railway.

6. Randall Manor, Staten Island
One of the more affluent enclaves in Staten Island, Randall Manor is full of multicolored Victorian homes with wrap-around porches and parlor rooms. Some even have views of New York Harbor and lower Manhattan. Named for Captain Robert Randall, the founder of nearby Snug Harbor -- a former sailor retirement center that's now a city park and cultural center -- the neighborhood has windy streets with maple and elm trees leading up a hill to a historic neighborhood. The area was originally developed as a summer vacation destination for wealthy Manhattanites who wanted to be closer to the water or in the cooler hills during hot August days.

8. Todt Hill, Staten Island
A neighborhood in the midst of a forest-like hill -- trees are so tall you can hardly see the sunlight on a spring day -- Todt Hill is one of the highest points in the city. The air is cool, crisp and clean. Older estates on hilltops overlook the harbor. People bicycle on the curvy streets. Seven Gables, Diana’s Trail, Nicole Loop and Overlook Drive -- even the names of the streets have a fairy-tale feel. Greener than 99% of New York City neighborhoods, this area draws people who like outdoor activities, gardening and bird-watching

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