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Many of you email me asking great questions and thought I’d share my answers with you all….I hear the market is changing and borrowing is tough…though I think That owning is better than renting. Any suggestions? Great question – and such a hot topic!
1- Buy a property in which you can see yourself living in at least 10-15 years- If the market changes,
This gives you plenty of time to stay outside until you recover.
2-Don’t take out an ARM (Adjustable Rate Mortgage) – despite the low monthly costs and rates
are attractive, cost more to refurbish and may result in additional monthly costs when it resets
Forcing you to sell – This is a bad idea if the market turns.
3- Buy the best condition you can afford and get it inspected- because home equity lines of credit are
Difficult to obtain, if property is in excellent condition, likely will not require major repairs
Or replacement over the next several years. would you rather borrow the money and make a smaller payment
Does the monthly amount or hit where the out-of-pocket costs are in the thousands or tens of thousands?
We all know when it rains, it pours – how would you like it if there were many major repairs
Boiler or roof at a time? Ouch!
4-Research Area- Make sure there is no change in future that may affect your value
Property- zoning, schools, etc. can maintain or improve the area. Sometimes Shopping Center
Can attract a bad element – or a really good one! Google Neighborhood Blog and Community Board
Tune in to see what’s the latest talk of the town!
I Have an ARM- Should I Refinance? My friend Ezra Tawil of Apple Mortgage in NYC can answer that…. Yes – many of us have heard about the current sub-prime mess and credit crunch. Let’s say real estate appreciation and interest rates simply return to the levels they’ve averaged since the Great Depression. If appreciation returns at 2-3% per annum, and a 9.5% rate on a 30-year fixed mortgage return – where would that put you? While no one can predict the future, shouldn’t we take steps now to protect our assets in case of such a reality? Don’t leave your home – one of your greatest assets – to chance! If you plan to stay in the property for any extended period of time – or don’t want to risk paying too much, or worse sell in an unpredictable market – yes the smartest and safest move is to take a 30 year fixed loan Pay and protect yourself. call him straight for the ref etawil@applemortgagecorp.com
Does it really matter when you put your property on the market?
yes of course! Historically, the largest market growth is recorded in the spring-summer months. Don’t you want to take advantage of this too? Many of my clients ask me what their property is worth… and we discuss condition, timing and plan to factor in value – and those who really listen and see their home as a generous asset See, it’s a win! You can too. If you start planning to get emotionally ready for the winter months of painting, cleaning, and moving, spring will be ready to roll around you! Hands down the spring and summer months are the best to sell. This means you should contact me in February and start your checklist, because most properties need paint, a handyman, clutter removal and some TLC…it takes time- especially if you have kids. Plan accordingly. Your pocketbook and family will thank you!
I have Rs 20,000 left to buy a property…where do I start? Since NYC and Brooklyn typically have 10% contract deposits, closing costs for condos are about 5% of the purchase price and prices for studios range from 400 and up….try the outlying areas! Buying is the first step toward freedom from your landlord and there are plenty of options that bring as little as 5 percent, and New Jersey has no mortgage tax—which reduces closing costs by about 2%. Call a mortgage broker to see how much banks will lend you, get preapproved and start searching!
My market is depressed in my area and I am having trouble selling my home – what are some other solutions? Great question! This may sound like a bad thing but you actually have several options- my favorite is to lease the property! Have someone else pay off the balance of the mortgage and hold it as an asset – you never know… it could pay for your kids’ college! Don’t want to be a landlord? One smart solution – especially for new landlords – is to hire a managing agent. Their role is to reduce your risk and educate you about what to do and what not to do. Need Cash? Before putting the property on the market, call a mortgage broker and either refinance or open a home equity loan or home equity line of credit.
Well, I hope you enjoyed these tips and any questions you may have are welcome. Email me to be on my list and to receive a copy of “How to Increase the Value of Your Home in a Weekend”.
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