Buying or Renting Info – Page 4 – Buy or Rent My Homes

REMODEL IN PROGRESS!

Published on November 8, 2016January 5, 2017 by Buy or Rent My HomesLeave a comment

This is a new 4-bedroom, 2-bath remodeling project located in the city of Carson. At the we bought the property the house included a room that was not permitted by the city. Since the house is intended to be a rental several decisions went into how to handle the illegal addition. Exclusive civil engineering costs, permits and additional delays all factored into the decision. After looking at the costs of getting the room up to code it was decided to leave the space open for now and make exterior walls of the remaining framing. We are also looking into tile options to cover the cement slab to give it a natural look and beautify what will be left of the space. We have several weeks to go on the work as you can see from my video. Take the walking tour now —>

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Mortgage Giant Expands 3% Down Loans

Published on October 28, 2016October 28, 2016 by Buy or Rent My HomesLeave a comment

mtg-giant

Wow big news from Fannie Mae. This could be a political move as we go into the election if mortgage applications have been drying up as of late. Fannie Mae announced this week that it would expand its HomeReady program, which includes 3 percent down payment loans. It is extending the 3 percent down mortgage to eligible refinancers who have loans already owned by Fannie Mae. Fannie Mae’s previous maximum allowable loan-to-value ratio for refinancers was 95 percent. Now, it will be up to 97 percent, under the new guidelines. Read more here—>

http://realtormag.realtor.org/daily-news/2016/10/27/mortgage-giant-expands-3-down-loans#sf40116106

(Maybe)The Biggest Real Estate Bubble?

Published on October 10, 2016October 10, 2016 by Buy or Rent My HomesLeave a comment

Chinese billionaire Wang Jianlin made his fortune in the country’s real estate market — and now he’s warning that it’s spiraling out of control.

It’s the “biggest bubble in history,” he told CNNMoney in an exclusive interview Wednesday. Bubble is a sensitive word in China after the dramatic rise and spectacular crash in the country’s stock market last year, which wiped out the savings of millions of small investors who thought Beijing wouldn’t allow the market to drop. After struggling to contain the fallout from the stock market debacle, China’s leaders could face a similar headache in the real estate sector. READ MORE HERE—>

http://money.cnn.com/2016/09/28/investing/china-wang-jianlin-real-estate-bubble/index.html?sr=twCNN092916china-wang-jianlin-real-estate-bubble0335AMVODtopPhoto&linkId=29325063

Lower Rents Ahead?

Published on October 7, 2016 by Buy or Rent My HomesLeave a comment

Renters may soon get some relief. In the third quarter, apartment rents in some of the most expensive markets in the U.S. showed a decline. This marks a notable turn from the six-year boom streak occurring in the rental market, according to a new report released by MPF Research, an apartment tracker firm. MPF says a flood of new units hitting the market is one main reason behind the slowing of rents in some high-priced markets. http://realtormag.realtor.org/daily-news/2016/10/06/rental-market-shows-signs-cooling#sf38067327

A Taste of the East Side

Published on October 6, 2016October 6, 2016 by Buy or Rent My HomesLeave a comment

I thought this was great coverage for NY and New England homes. Amazing how far your money will go, especially in the suburbs compared to California Real Estate. See More Here—>http://www.nytimes.com/2016/10/02/realestate/homes-that-sold-for-around-750000.html?smid=tw-nytrealestate&smtyp=cur

kitchen

Would You Make this Purchase???

Published on October 4, 2016 by Buy or Rent My HomesLeave a comment

Everyone wants to own a home. But if you don’t BUY RIGHT Home ownership can be blinding!!! I don’t know WHO advised the buyer of this deal recently. Take a closer look at the deal points:

3 Bedrooms, 2 bathrooms, purchased recently for $500K. The median house price for this zip code is $450K. This house is not remodeled and has an ugly old kitchen. Good bones, but there is nothing new about the house. Another words this house is already over median.

The buyer put down 5%. Financed the balance so they now owe PMI (personal mortgage insurance). Property tax will be 1% of purchase price in LA, so $5000 per year with 2% increases annually.

Since the borrower opted for a 30 year mortgage and put a minimum down payment into the deal, they were assessed an additional 0.85% charge. The APR of 3.13% with the assessed addition is now 3.98%. This all looks great, right?

The buyer believes the house will appreciate 5% for the next 3 years, to $578.8K. That’ a whopping $78K PROFIT RIGHT??? WATCH THIS:

Borrowed Amount: $475K

Down: $25K

Interest to be Paid in 3 Years: $55.2K

Property Tax to be paid in 3 Years: $15.3K

Property Insurance to be paid in 3 Years: $1K

Total Paid by Buyer in 3 Years: $71K

The buyer after 3 years has put $571K into the house, even though they paid down part of the loan, they have still effectively PAID $571K. How much profit? $7.8K hopefully. WHY? because the buyer assumed a 5% increase for 3 straight years.

If the buyer is wrong in 1 out of the 3 years the profit is….ZERO!!!

So again I ask, would you have made this purchase???

Home Design Trends Worth Watching!

Published on September 30, 2016 by Buy or Rent My HomesLeave a comment

Herringbone is emerging as the pattern of choice in 2016. Herringbone is the arrangement of rectangles that is so named for its resemblance to the bones of fish. This pattern is popping up on everything from hardwood floors, kitchen backsplashes and shower walls. It may be subtle or bold. Read on—>