The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight. Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for married couples.
Interest Rate will Go up possible to 7%,
Mortgage Rate are being held down by federal government to help stimulate the market, the government was active in purchase of mortgage-backed-securities over the year.
The goal was to control the interest rate, so home buyers can qualify for a mortgage but to end December 31, 2009 which will extend unit march 2010. So the private sector have to step up and provide mortgage , the government was comfortable lending 5% but the private sector will not see that as attractive.
•· National debt rising dramatically
•· Inflation looming down
•· Doesn't make good business sense to lend money for thirty year at five percent.
** New York Times just this past week said this about this issue:
"One of those things propping up the market has been the Federal Reserve, which has been buying mortgage-backed securities to keep interest rates low. As the Fed begins to wind down its purchases in the next few months, rates will become less enticing. Analysts expect them to rise to at least 6 percent from the current 5 percent."
If interest rate go up even by one percentage point, to six percent, as the New York Times suggests analysts are predicting, that will raise the cost of purchasing a home.
Some buyers are sitting on the fence right now, concerned that prices still might fall.In reality, even if prices fall another ten percent, if interest rates rise one percent, the buyer's monthly mortgage payment will actually be higher.
Call me or email me, I can connect you to the top agent your area.
Sales Rise 6.7 % in april!
Nar said it has it's biggest jump in sale since last 9 years up 9.2 %. "This is yet another positive indication that the bottoming process is forming," Jennifer Lee, an economist at BMO Capital Markets, wrote in a note to clients. The 30 year- fixed rate is around 5.3% compared to a week ago at 5 % (www.bankrate.com).
One of the biggest boosts to the sale is $8,000 tax credit for first time homebuyers, also since buyer need to FINISH their purchases by NOV, 30 to claim the credit.
Sales of inexpensive foreclosures and other distressed low-end properties have even sparked bidding wars in places like Westchester County and Bronx NY
Question:
What you think what will happen, will the home prices keep falling because of the massive REO. I complete understand that ever town/city/village is different
When I first started as a real estate investor, I thought I should buy as many properties as I possible can. A property allows you to make money with out any limit, but there are only two methods that are commonly used.
Method 1) Buy and flip: Find a TLC / Handyman Special / or a Total Rehab property then buy It very low and sell it higher including cost of repair and labor. And in this market if you search hard enough you can buy a short sale with little or no work needed. Method
2) Buy and hold: When you purchase a property hold it to generate income and appreciate in value over time. Real estate demand continues to grow as population continues to grow and people are willing to pay for place to live.
The two common problems investor doesn’t invest into Real estate.
Problem 1) Tenant problems is the biggest reason investor quit in real estate before reaping the benefit of investment appreciation. There are many avenues you can take to tackle this problem, hire a management company many big investor that buy 15 or more units use a management company. Want more for your buck; hire a small management company that is flexible with their fees: most small company is just starting off and wants more business. Another avenue is to hire a realtor to rent the property and to help in (problem with tenants, in the eviction, get advice , knowledge about the area, rental of apartment, or just maintaining a property) for very low cost but with much more benefit.
Problem2) Over spending on budget: When flipping houses many investor don’t know what to look for or even have budget in place. Understand that a investment needs to keep cost low but sell it quickly. My experience as an investor on flipping property was a eye opening experience and hit on my net profit. So hire a realtor that has good track record working with BUYER’S they know what a buyer looks at when buying a property. And don’t go over broad with high end product where houses in your market is selling with low end product example (crown molding, cherry hardwood floor, etcc) When flipping a property focus on, Kitchens – Bath room: now every property should have 2 bathrooms, and don’t forget to keep good layout of the property.
Hire a local realtor with 2 or more year of experience in the market, for investors this is best time to buy don’t miss this boat again. Start small with Buy and hold. Good Luck.
| MLS#: | 2831963 | Active | LP: | $1,100 | ||||||||||||||||||||||||||||
| Addr: | 594 Yonkers Ave | Area: | 7 | |||||||||||||||||||||||||||||
| PO: | Yonkers | Zip: | 10704-2699 | |||||||||||||||||||||||||||||
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| City/Town: | Yonkers | |||||||||||||||||||||||||||||||
| Village: | None | Sch Dist: | Yonkers | |||||||||||||||||||||||||||||
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| Level1: | Living Room, Large Bedroom, KIT, Bath | ||||||||
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| Attic: | Addl Fees: | No | HOA: | No | YrBlt: | 1900 | |||
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| Style: | Colonial | Color: | Exter: | Brick, Vinyl | |
| Sec Deposit: | $2200 | Complex: | Prkng Fee: | $0 | |
| Elem: | Yonkers | Prkng Incl: | No | Lot Size: | 0.110 acres |
| Jr High: | Yonkers | #Ass. Prkng: | Utils Incl: | Heat, Hot Water | |
| High: | Yonkers | Appr Req: | Yes | Model: |
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| Remarks: | East Yonkers/Lincoln High School Area Completely Renovated, Large One bedroom apartment. NEw kitchen/Bath, Just painted, hardwood floor, Only $1100. Cats OK. Sqft To be Verfied. |
| Agent Only Remarks: | Completely Renovated, Large One bedroom apartment. NEw kitchen/Bath, Just painted, hardwood floor, Only $1100. Cats OK. |
Building Wealth Together!! Real Estate is the easiest way to build wealth. Having the right agent is crucial. My experience speaks for itself. As a homeowner, investor and real estate consultant m
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