Talking Point

• Traditionally, the period between Thanksgiving and New Year’s is the slowest time of the year for home shopping.  However, homeowners who must sell in the winter can use staging, the reduced competition and some seasonal opportunities to their advantage.
   
• Remembering the basics is key.  Taking care of needed maintenance and repairs is obligatory in any season.  A thorough cleaning and decluttering are equally essential.  Tidying up the yard and touching up the exterior appearance to improve curb appeal also can make the difference between deal or no deal.
   
• Home staging takes on a new focus in winter.  Rearranging the furniture and applying a fresh coat of paint to any room are just as important.  But to convey a cozy impression in the winter, it may befit homeowners to turn up the thermostat and have a fire in the fireplace for open houses. 

Food for thought

Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011.  The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.  The effective composite interest rate in second-quarter 2011 was 4.85 percent and 4.78 percent in the third quarter of 2010.

Survey reflects tight credit conditions
Recent home buyers are staying well within their means with notably higher incomes and modestly higher down payments than buyers in the previous year due to the restrictive mortgage credit environment, despite historically favorable housing affordability conditions, according to 2011 NATIONAL ASSOCIATION OF REALTORS®’ Profile of Home Buyers and Sellers.

The share of first-time buyers declined to 37 percent in 2011 compared with 50 percent in the 2010 study.  The study shows the median age of first-time buyers was 31, and the median income was $62,400, up from $59,900 in the 2010 study. The typical first-time buyer purchased a 1,570 square foot home costing $155,000; the estimated median monthly mortgage principal and interest payment was $794.

Keep Your Home California

Mortgage aid open to more Calif. borrowers
The state-run program, “Keep Your Home California,” which helps homeowners struggling to pay their mortgages now has broader eligibility guidelines.  Borrowers who did “cash-out” refinances and own multiple properties now are eligible for the program, according to California Housnig Finance Agency officials.

Making sense of the story

• To date, Keep Your Home California has helped approximately 8,000 low- and moderate-income households that are behind on loan payments or close to default.
  
• There are four parts to the program: Mortgage help for the unemployed, mortgage aid for homeowners with documented financial hardship, relocation help for those in the midst of a short sale or deed-in-lieu of foreclosure, and reduction of principal.
  
• Homeowners who completed “cash-out” mortgage refinancing now are allowed to take part in the four programs outlined above, and borrowers who own more than one property also can apply for the program.  Previously, these two groups of borrowers were excluded from participation.
  
• Mortgage aid to unemployed borrowers also has been extended to nine months, instead of six.  Such homeowners can receive up to $3,000 a month.  To qualify, borrowers must be receiving unemployment benefits.
  
• Additionally, the program has reinstated up to $20,000 in past-due mortgage payments instead of the previous $15,000 cap.
  
• To review qualification guidelines, visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org.

Before starting the house hunt, there are a few things buyers need to consider

• Credit score: Lenders are generally looking for buyers to have credit scores of at least 620 nowadays.  Although the Federal Housing Administration will extend loans to borrowers with credit scores as low as 580, most banks are imposing higher scores.
  
• Reserves: Even when renting, financial advisers recommend saving four to five months’ worth of expenses in case of job loss or any other unforeseen event.  Homeowners should add an additional two months’ worth to their savings.
  
• Settling down: Buyers should think about if they see themselves living in the same place for five to seven years.  Homeownership is not just a financial decision, it’s also a lifestyle choice.

What is the market like for rentals? Condos for example?

The market for rentals is very strong especially in the Bay Area due to all the demand from previous home owners that have lost their house due to foreclosure and therefore must live somewhere else for rent.  The current strict lending environment has caused folks with even close to perfect credit scores (800+ FICO) to be denied in their loan application process when trying to qualify for a home purchase today.

 

Right now in the Bay Area investors are enjoying some of the highest cash-flow return rates on rental properties in over 25+ years in neighborhoods all across the Bay Area on different types of properties such as Single Family Detached Homes, Apartments, and Condo's alike.

 

If you would like further details on the rental market for condo's  in a specific city or neighborhood just let me know.

 

Happy Halloween!

HAPPY HALLOWEEN

Be sure to be well, be safe, and of course eat lots of candy every one!!  Halloween is a grand American tradition that has always been one of the most exciting and fun of all holidays were you never get too old to put on a costume and never get at all bored of watching all the children of all ages enjoying themselves as their favorite character in full dress collecting their favorite candy all the while running around on a full tank of sugar!  May all the children and parents sleep very well tonight!  TRICK OR TREAT!!

Good deal in CA Bay Area El Cerrito

Good deal in CA Bay Area El Cerrito 

I have knowledge of a great 2 bedroom, 1 bath home with over 1000 feet of living on a lot of over 7,000 feet.  This home will be listed next week below $400,000 and approximately $100k below current market value.
Property is located in the desirable Fat Apples's neighborhood.

http://www.YourHOMEinvestment.com