Buying A Home In A Depressed Market
January 9th, 2009Owning a home is better than renting for the great majority of people. Although the mortgage lender pockets the interest, the principal amount paid on a home mortgage returns to the homeowner’s pocket as home equity.
A home is most people’s biggest investment. In contrast, the entire rent goes into the landlord’s pocket, leaving the renter with nothing to show for all of their years paying their landlord’s mortgage. Although landlords are responsible for property upkeep and maintenance, many landlords shirk this legal obligation in order to profit even further from tenant’s rent.
Renting is most advantageous to those who do not anticipate living in one area for long, or those for whom property maintenance and upkeep isn’t possible. Most renters appreciate the advantages of property ownership, and yet remain stuck living under someone else’s roof, paying for someone else’s mortgage. Many prospective homeowners remain segregated from the property ownership ladder until they’ve saved sufficient funds to apply to the home mortgage down-payment, and other initial fees associated with the purchase of residential property.
As thirty percent of adult Americans do not own a home, mortgage lenders also appreciate the vast, untapped market of people interested in home ownership. Mortgage lenders introduced a range of special home mortgage products in recent years geared to supply this untapped demand from people with low income, low net wealth, or low credit scores. Unfortunately, these so-called sub-prime mortgage products were packaged deceptively, and peddled recklessly, leaving many first-time home buyers with an ultimately unaffordable mortgage, and the housing market in an unsustainable buying frenzy of quickly rising home prices. The property buying frenzy has now subsided. Home prices are beginning to return to realistic values as lenders reassess their products and services in a more realistic light, such as sell and rent back agreements.
Now may be a good time for the prospective home buyer with sufficient savings to reconsider buying a first-home, or just a more affordable next home. Before sealing any deal, the prospective home buyer would be wise to thoroughly research affordable home mortgage products, comb through all of the fine print, and ask many questions of the lender, realty agent, and home seller.
Buying A Home In A Depressed Market
January 9th, 2009Owning a home is better than renting for the great majority of people. Although the mortgage lender pockets the interest, the principal amount paid on a home mortgage returns to the homeowner’s pocket as home equity.
A home is most people’s biggest investment. In contrast, the entire rent goes into the landlord’s pocket, leaving the renter with nothing to show for all of their years paying their landlord’s mortgage. Although landlords are responsible for property upkeep and maintenance, many landlords shirk this legal obligation in order to profit even further from tenant’s rent.
Renting is most advantageous to those who do not anticipate living in one area for long, or those for whom property maintenance and upkeep isn’t possible. Most renters appreciate the advantages of property ownership, and yet remain stuck living under someone else’s roof, paying for someone else’s mortgage. Many prospective homeowners remain segregated from the property ownership ladder until they’ve saved sufficient funds to apply to the home mortgage down-payment, and other initial fees associated with the purchase of residential property.
As thirty percent of adult Americans do not own a home, mortgage lenders also appreciate the vast, untapped market of people interested in home ownership. Mortgage lenders introduced a range of special home mortgage products in recent years geared to supply this untapped demand from people with low income, low net wealth, or low credit scores. Unfortunately, these so-called sub-prime mortgage products were packaged deceptively, and peddled recklessly, leaving many first-time home buyers with an ultimately unaffordable mortgage, and the housing market in an unsustainable buying frenzy of quickly rising home prices. The property buying frenzy has now subsided. Home prices are beginning to return to realistic values as lenders reassess their products and services in a more realistic light, such as sell and rent back agreements.
Now may be a good time for the prospective home buyer with sufficient savings to reconsider buying a first-home, or just a more affordable next home. Before sealing any deal, the prospective home buyer would be wise to thoroughly research affordable home mortgage products, comb through all of the fine print, and ask many questions of the lender, realty agent, and home seller.
Stuck for cash this x-mas, sell and rent back your home
January 6th, 2009It’s no big secret that money is tight, and that’s true no matter what area of the country you’re in. The economy is having trouble and a lot of people aren’t sure how they’re going to get their x-mas presents this year. They don’t want their children to have to do without, but they might already be in serious financial difficulties and not see how they can get out. One thing that you can do if you find yourself in this situation is to sell and rent back your home. Doing this is becoming increasingly popular now because of the struggling economy, but there were always some people who did it when they realized that they were cash-strapped and that they could continue to live in the place that they loved. You don’t have to move and you don’t have to tell anyone about your financial troubles. No one will know that you’ve sold your home and that you’re now just renting. But most of all you’ll have the cash that you need to have a great x-mas and a good New Year as well.
Naturally, when you sell your home in this way you aren’t going to get offered the full market price for it, so you’ll need to be aware that you’ll be selling it for less than it’s worth and then renting it back from the company you just sold it to at the going market rate. Some companies are better and safer to use than others, so you’ll want to do some homework and research to find one that’s very reputable and that you feel comfortable with. There are companies out there that will also give you the option to buy your home back from them at a later date when your financial position improves. There are some people who think that these companies are preying on people, but when a person is facing foreclosure, bankruptcy, mounting debts, stress, and no x-mas presents at all for their children this might be a viable option to give them some cash and keep them in their home into the New Year and beyond.
Is It Better To Rent Or Buy In The Current Economy?
January 6th, 2009Historically speaking, the answer to the rent or buy question is that usually it’s smarter to buy a house. These are not usual times. The true answer to that question, of course, depends on the individual situation. There are some factors to consider when making this important decision.
Some of the normal reasons to choose renting over buying a home include plans to relocate in the next couple of years or a low rent payment. But in the current economy, renting could make sense for a number of reasons. Renting gives financial flexibility, allowing people to save or invest. Other than deposits and the monthly rental payments, there is no large initial outlay of money. There are no maintenance costs and time does not need to be set aside for upkeep.
It is important to consider the costs inherent to buying a home, such as down payments, closing costs, interest, insurance, and upkeep. Suze Orman, a financial analyst for CNBC, points out that the American dream of home ownership can turn into a nightmare for those buyers that get in over their heads. The wave of foreclosures across the nation can attest to that reality.
The pitfalls of home ownership now include buying a home that may lose value, as well as the difficulty of getting a loan in the first place. According to the National Association of Realtors, existing home sales fell 8.6 percent in November. The median sales price fell 13.2 percent in November to 1,300, from 8,000 a year ago. That was the lowest national median price since February 2004. Which could mean it’s a great time to buy, or it could mean home values will continue to fall.
Home ownership is more than about just a place to live, it is an investment. The portion of your monthly payment that goes toward principle ideally raises the equity in your home each month. These days the return on the investment all has to do with long-term plans and the economic outlook. But look at it this way, the rent money goes totally into someone else’s pocket each month. There is a strong possibility that your home value will increase with time, especially if you plan to stay put for a number of years.
There are other benefits to buying a home, such as knowing your exact payment for the next 15 to 30 years, which can help with planning and budgets. Rent payments are likely to increase on an annual basis. There is also the potential to pay off the loan and have no monthly mortgage payment. There are the intangible benefits to consider as well, like pride in ownership and belonging to a community through being part of a neighborhood.
There is certainly no reason to rush into buying a home. In these uncertain economic times there may be good reason to be cautious. But there are also good reasons to be a buyer, such as historically low interest rates and lower home prices. Bankrate.com has a good calculator that can help crunch the numbers. If renting is what ends up being the best option, be sure to invest and save each month as well.
Austin Neighborhood Profiles : Tarrytown
January 6th, 2009One of Austin’s most elite neighborhoods lies just west of Mopac, in the heart of Austin. Bordered by Lake Austin to the west, Mopac to the east, Lake Austin Boulevard to the south and 35th street to the north, the Tarrytown neighborhood holds some of the most desirable homes in the Austin real estate. Tarrytown has a more eclectic mix of homes than the prestigious Pemberton Heights directly across Mopac. They range from small cottages to grand estates, with a mix of mid century modern homes and brand new modern dwellings. The one uniting factor in the area is the perfectly kept landscaping and impeccable yards, and giant shade trees that cover the entire neighborhood. Tarrytown is very family oriented, possibly because of the exemplary school accountability rating Casis Elementary receives year after year.
Tarrytown is often recognized for the actual neighbors inhabiting the neighborhood. It’s from this area Matthew McConaughey’s famous bongo playing took place. Lance Armstrong, George W. Bush, Rick Perry and an assorted number of politicos have inhabited Tarrytown through recent years. River Oaks Farms at 2105 Scenic Drive, was built in 1906 by Judge Robert Lynn Batts, a law professor at UT (and after which Batts Hall is named on the campus).
The beautiful walled estate borders Lake Austin, and has 3 cottages on the land that have been rented out to many TV and film stars during shoots in Austin, such as Luke Wilson. Jim Eno, drummer for local-turned-nationally popular band Spoon, has converted his garage on Bowman Avenue into a top notch recording studio called Public Hi-Fi, where Spoon now records their albums.
There are a slew of local eateries in Tarrytown, with many located on Lake Austin Boulevard, such as the Hula Hut, Magnolia Cafe, and the Kitchen Door. In 2003, the popular hamburger restaurant Holiday House, located in the Tarrytown Courtyard on Exposition, was forced to move elsewhere when the owner of the shopping center, a member of PETA, banned meat from being sold. Nu Age Cafe moved in, selling all vegetarian dishes, but also recently closed. However, further down Exposition, the Tarrytown Farmer’s Market runs every Saturday morning.
Lauren Tolley, owner of Talulah Bleu Tarrytown Florist, also runs the farmer’s market. Tolley took over the Tarrytown Florist from the R.A. Lewis family who started owned the business since 1946. She also inherited the oldest nursery/agricultural license in the state, which was granted to R.A. Lewis’s father around the turn of the century. There is a plot of wooded land behind the florist where Tolley hosts the Tarrytown Farmer’s Market each Saturday from 9am until 1pm. Vendors vary from organic fruit and vegetable merchants to those selling vintage belt buckles, candles, and hand-stitched clothing.
At the north end of Tarrytown lies the beautiful Mayfield Nature Preserve and the Laguna Gloria Museum. Though the park itself is only 22 acres, it’s peaceful, serene and chocked full of walking trails, gardens, stone walls and peacocks which hover around the 1870s cottage located in the park (which can also be rented out for special occasions). The Laguna Gloria art museum is an indoor/outdoor venue with a stretch along the Lake Austin shoreline. There are gigantic works of art along the shoreline, and more to see inside the 1916 Mediterranean-style villa built by Clara Driscoll in 1916.
One of the more pristine neighborhoods in the city, movers and shakers of Austin can always be found in Tarrytown, right next door to families-of-four, and musicians as well.
Why the cash for property market is here to stay
January 6th, 2009The cash for property market is definitely here to stay. A lot of people thought that it was just a passing fad that would die out quite quickly, but they were mistaken. Instead, there has been an increase in the cash for property market over the last few years, and with the economic problems the demand for that market is only going to go up. The credit crunch is causing problems for people who otherwise would not have had a problem because they suddenly can’t borrow any more money, refinance, or do anything else that they would have typically done just a few short months ago. Things changed so quickly that many homeowners didn’t have a chance to try to fix any problems that they were having before things went bad and they became stuck. At that point most of them were at a complete loss as to what they should do or even what they could do to make it better. With that being the case, many of them lost their homes to foreclosure and they lost most of the rest of what they had to bankruptcy.
For those people who didn’t lose everything and were just barely hanging on, something new emerged and gained ground – these people could sell their home to a company and then rent it back. These companies had been around in various forms for a long time, but they were generally not safe to work with. Now, however, there are many reputable ones that are really out to help the consumer – while still making money, of course. When they buy a home they generally pay eighty to ninety percent of the value to the homeowner. The homeowner at that point usually does not have a mortgage anymore and often gets some extra cash to take care of other obligations. Then the company charges the homeowner rent, and that rent is often less than the original mortgage payment was. Some companies let the homeowner buy their property back later at a reduced rate, as well. It’s a great way to avoid foreclosure for a lot of people, so it’s definitely not going away any time soon.
What Are Mutual Funds Investments And Hedge Funds
January 6th, 2009
http://www.FtseStockMarket.info/ This is a Q and A session for What are Mutual Funds and Hedge Funds Investment options.
Investment Strategies: Emerging Markets, Mutual Funds, Consumer Staples
January 6th, 2009
Analysis and Discussion with Brett Gallagher of Artio Global Management
Dollars and Sense: Investing In Mutual Funds part2
January 6th, 2009
Dollars and Sense: Investing In Mutual Funds part2
Mutual Funds Resources in Business Source Complete
January 6th, 2009
Demonstrates how to find mutual funds resources in Business Source Complete.