Real Estate New York

Market Update November 2007

Run the Numbers Before Investing in Property

People talk about running the numbers before buying an investment property, but what are the numbers and how do you get accurate numbers? Running the wrong numbers can make the difference of making $500 or losing $1000 per month. In this article, we will go through the costs and factors to consider making your investments successful.

In addition, a free rental property investment calculator is provided by the author

Click for complete article by Kimbrough Gray

Getting Ready to Own Your New Home

1.  Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2.  Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.

3.  Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

4.  Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2% and 7% of the home price.

5.  Get your credit in order. Obtain a copy of your credit report.

6.  Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.

7.  Organize all the documentation a lender will need to preapprove you for a loan.

8.  Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9.  Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10.  Find an experienced REALTOR who can help you through the process.

It's a buyer's market, so why are so many buyers not buying?

After all, the government has been working to make homes more affordable. There's an array of recent actions in buyers' favor, from Congress working to expand Federal Housing Administration insurance, to raising the loan buyback limits for Fannie Mae and Freddie Mac. Meanwhile, the Federal Reserve has lowered short-term target borrowing rates, which impacts consumer interest rates on mortgage loans, among other things.

While mortgage applications have risen modestly on lower mortgage interest rates, many buyers continue to bench themselves, waiting for rates and housing prices to dip lower. With all the housing market hubbub in the papers and on TV, they might be struggling to sort out the facts.

Here are some of the reasons buyers have been reluctant:

• Bad press. Headlines in the media bombard buyers with news about a housing slump, skyrocketing foreclosure rates, and falling home prices in some markets — not exactly the type of headlines that give buyers reassurance.

• Better deals if they wait? Some buyers believe prices will drop farther if they just hold out a little longer in purchasing a home. In an article from MarketWatch, “ Fed's Bernanke Predicts Further Mortgage Turmoil ,” Bernanke feeds that notion by saying "more delinquencies and foreclosures can be expected in the subprime, adjustable-rate mortgage market as borrowers face interest-rate resets." Buyers translate this as "Wait to buy! As more homes come on the market, you could get a better deal!"

• Shaken confidence. In a recent speech about the economy, President Bush cited "some unsettling times" in the U.S. housing and credit markets and sought to assure jittery Americans that the economy is holding up well, despite worries about a recession. Nevertheless, some Americans are unsure whether the housing slump and higher mortgage costs could lead to a recession, as well as the extent the subprime mortgage crisis will have on housing in the coming months.

• Banking on lower interest rates. While the Fed's recent rate cut by a quarter-percentage point may have provided a psychological boost to the markets, many analysts and builders think it will take more cuts — and more time — before the housing market recovers, analysts say. Buyer takes this as: “Maybe we should wait for more interest rate cuts then.”
  
  Seeing through these unfortunate misconceptions can make all the difference in owning the best home at the best price in today's changing market.

Read: What Buyers Need to Know by Blanche Evans

Home Styles: Art Deco

The 1925 Paris Exhibition Internationale des Arts Decoratifs launched the Art Deco style, which echoed the Machine Age with geometric decorative elements and a vertically oriented design. This distinctly urban style was never widely used in residential buildings; it was more widespread in public and commercial buildings of the period.

Towers and other projections above the roofline enhance the vertical emphasis of this style, which was popularized by Hollywood movies of the 1930s. Flat roofs, metal window casements, and smooth stucco walls with rectangular cut-outs mark the exteriors of Art Deco homes. Facades are typically flush with zigzags and other stylized floral, geometric, and "sunrise" motifs. By 1940 the Art Deco style had evolved into "Art Moderne," which features curved corners, rectangular glass-block windows, and a boat-like appearance. Popularized in the United States by Finnish architect Eliel Saarinen, the style enjoyed a revival in the 1980s.

Click here for a complete guide to architectural styles

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