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Jersey City, NJ

A New FREE way to Gain FREE Quality LEADS while Expanding your NETWORK

Rudolph "Rudy the Radio Realtor" Daniels: Real Estate Agent in Jersey City, NJ
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Good news, bad news - FHA premiums up - Rates mixed

08-28-08
Paul Luykx
Paul Luykx: Loan Officer in Jersey City, NJ
Nobody likes bad news, but it just keep coming it seems. This week billionaire investor Warren Buffet predicted the economy could be worse in 5 months and Atlanta Fed President Dennis Lockhart said home prices in could fall another 10-15%. Ok then - well what goes up comes down, and vice versa. Even now I see solid cash-on-cash investments, and we don't know where the bottom is. Time to prepare for the inevitable turnaround. Have a good long weekend folks! ... Paul

Fixed rates lower, ARMs up
"Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist. ARM rates, on the other hand, rose slightly after the Federal Reserve's Open Market Committee hinted it might increase the overnight bank lending rate" said Frank Nothaft, Freddie Mac vice president and chief economist. Freddy Mac rate surveys
1-3 week trend: Down 21+ days: Flat
Market commentary
Glimmers of good news in US housing reports
While no one is ready to call the bottom of the worst housing collapse in decades, there were glimmers this week that the severity is waning... more
FHA hikes insurance premiums (again)
The Federal Housing Administration said earlier this week that it would hike its upfront mortgage premiums for all purchase money mortgages and full-credit qualifying refinances. It will add 25 basis points to its mortgage premium, bringing the upfront premium charged to most borrowers to 1.75 percent... more
Hollywood condo billed as paprazzi proof
A condo project in LA is promoting itself as the first paparazzi-proof building, complete with "Israeli-trained VIP" security guards... more

5 chances to buy hip-hop mansions
If you’re in the market for a house that lives large, check out the homes of hip-hop stars currently for sale... more

_________________________

The future belongs to those who believe
in the beauty of their dreams
(Eleanor Roosevelt)

Market Conditions

08-28-08
Pamela Bell
Pamela  Bell: Real Estate Agent in Jersey City, NJ

Conditions Reports

Just wanted to let you all know that you can now follow my reporting on the market conditions for two of my major markets here on the Hudson River Gold Coast in New Jersey.

Just click the Realty Times MARKET Conditions Reports LOGO above to check out the latest in Jersey City and Hoboken real estate.

Who's ahead at the end of the year? the renter or the buyer?

06-19-08
Joan Prout
Joan Prout: Real Estate Agent in Jersey City, NJ

Renter, paying $3000/mo.

OR

Purchaser of a $500,000 condo with $8000/yr. in taxes and $500/mo. Maintenance. (assuming a $450,000 mortgage w/ a 30-year fixed rate mortgage @6.5%, which comes out to a monthly payment of $4,011)

Okay, this was probably a no-brainer. (I'm a real estate agent...)

The purchaser spends less. But how much less?

  • Less than $1000
  • $1000-2000
  • $2000-3000
  • Over $3000?

The answer is over $3000. ($3,328.09) The difference is due to your Federal income tax payment. If you earn over $78,850 (single) you are in AT LEAST the 28% tax bracket. (A dollar earned puts 72 cents in your wallet.) The purchaser can take a tax deduction of $37,250. The monthly income tax reduction is $869 and the principal on the mortgage is paid down by $419, so the purchaser pays $277 LESS each month than the renter does.

Put another way, over the course of a year, the renter pays more than 13 months rent (Taxtember? Your Uncle Sam thanks you for the additional $869/mo.)

If this makes sense to you, let me know. You can buy a VERY nice condo in Jersey City for $500,000.