Studies show the dream of homeownership is becoming a reality for a growing number of Americans.
For example, according to the 2005 Harvard Joint Center for Housing Studies State of the Nation's Housing Report, minorities are making inroads into all housing market segments across the United States.
This trend is expected to continue with minorities making up a growing share of the homeowner population with each successive generation. The study reveals that nearly 35 percent of all first-time homebuyers are minorities and more than 40 percent of all renters are minorities-these could be or will be the homeowners of the future.
Companies in the housing and mortgage industries are taking notice of this trend and are making efforts to meet the needs of today's prospective homebuyers.
"Mortgage lenders need to have people who reflect the communities they serve located in the neighborhoods that we want to serve if we want to inspire people to become first-time homeowners," said Jackson Cosey, senior vice president of Emerging Markets for Wells Fargo Home Mortgage.
For instance, Wells Fargo recently introduced a program designed to help serve consumers with down payment difficulties or lack of traditional credit history by helping them qualify for loans they can afford.
Called the Home OpportunitiesSM program, it includes qualifying debt-to-income ratios that address the growing reality that homeowners need to spend a greater percentage of their income on housing.
Also, it provides for nontraditional credit references that enable consumers who do not have traditional or lengthy credit histories to qualify for the program. In addition, flexibility on down payments and closing costs allows customers to purchase a home without a down payment.
"Home-financing options such as this program will allow more people including first-time homebuyers and low- to moderate- income borrowers to do something they have only dreamed about: owning a home," added Cosey.
Sunday, May 9, 2010
Saturday, May 8, 2010
A Surprising New Trend in the Real Estate Market
If, like most people, you are interested in real estate news and browse the headlines every now and then, chances are you might have read about it already ... and in case you haven't heard about it, then you might be very, very surprised about a new trend that may be contrary to what many people expect ...
Firstly, let's start with a few teaser questions ...
Let's suppose you had a lot of money ... hoards of it ... in early 2000, and were willing to invest it in real estate.
The question is ...
What sort of real estate do you think you would have purchased ?
Would you have purchased single family homes, multi family homes, two bedroom condos, raw land, coastal real estate, luxury homes, or ... ?
If you are trying to guess the answer, please do so now before you read the rest of the article :-)
Assuming you have your answer in mind, let's proceed ...
If your answer is been one of single family homes, multi family homes, two bedroom condos then give yourself a pat on the back ... you might have made quite a tidy amount of money ...
And if your answer is luxury homes, then give yourself two pats on the back, smile the biggest, most pleasant smile you have ever smiled ... you might have made well over a million dollars in profits :-)
For ...
Luxury Homes are now one of the best performing segments in the real estate market !
And what does that mean ?
Well, you might want to consider this ... according to some sources, after a decline of 7.1% in 2001, this segment gained 3.6% in 2002, 0.3% in 2003, 13.7% in 2004, and 13.2% in 2005 ...
And just what would that mean in terms of money ?
According to the Prestige Home Index, the price of an average luxury home in California's Bay Area is now $2.88 million - an increase of $336,000 from the previous year !
And that is more money than what selling several homes profitably might have made !
And just how many people could have foreseen this trend ? Well, your guess maybe as good as anyone else's in this regard !
While no one may be able to determine how long this trend will continue, there might be several other segments in the real estate market that might perform equally, if not better, in the future.
And one such possible segment may be ...
Vacation Real Estate
Another growing trend has been that people young and old have been moving to destinations like the Mexican Riviera, and are either setting up home there or are buying second or third homes there ... and gated communities are being set up in areas that were not very long ago petite little villages.
And the result - real estate values not seen before in the area ... and the values seem to be increasing too.
And how long will this trend continue ? Again, your guess may be as good as anyone else's in this regard.
Firstly, let's start with a few teaser questions ...
Let's suppose you had a lot of money ... hoards of it ... in early 2000, and were willing to invest it in real estate.
The question is ...
What sort of real estate do you think you would have purchased ?
Would you have purchased single family homes, multi family homes, two bedroom condos, raw land, coastal real estate, luxury homes, or ... ?
If you are trying to guess the answer, please do so now before you read the rest of the article :-)
Assuming you have your answer in mind, let's proceed ...
If your answer is been one of single family homes, multi family homes, two bedroom condos then give yourself a pat on the back ... you might have made quite a tidy amount of money ...
And if your answer is luxury homes, then give yourself two pats on the back, smile the biggest, most pleasant smile you have ever smiled ... you might have made well over a million dollars in profits :-)
For ...
Luxury Homes are now one of the best performing segments in the real estate market !
And what does that mean ?
Well, you might want to consider this ... according to some sources, after a decline of 7.1% in 2001, this segment gained 3.6% in 2002, 0.3% in 2003, 13.7% in 2004, and 13.2% in 2005 ...
And just what would that mean in terms of money ?
According to the Prestige Home Index, the price of an average luxury home in California's Bay Area is now $2.88 million - an increase of $336,000 from the previous year !
And that is more money than what selling several homes profitably might have made !
And just how many people could have foreseen this trend ? Well, your guess maybe as good as anyone else's in this regard !
While no one may be able to determine how long this trend will continue, there might be several other segments in the real estate market that might perform equally, if not better, in the future.
And one such possible segment may be ...
Vacation Real Estate
Another growing trend has been that people young and old have been moving to destinations like the Mexican Riviera, and are either setting up home there or are buying second or third homes there ... and gated communities are being set up in areas that were not very long ago petite little villages.
And the result - real estate values not seen before in the area ... and the values seem to be increasing too.
And how long will this trend continue ? Again, your guess may be as good as anyone else's in this regard.
Friday, May 7, 2010
Alternative Housing
Why alternative housing? To save money, to travel, to live creatively - there are many reasons why people choose to live in tents, RVs, cabins, underground homes, rental rooms and anything else that's less common than the houses, condos and apartments that most people call home. Below are some of these housing options, and their advantages.
Alternative Housing That Moves
Camping at a hot springs area, we sat around the campfire one night with several young men living in the desert in their old converted school bus. It cost them nothing to park it in the desert (on BLM land you have to move every two weeks, though), bathed for free in hot spring tubs that were as nice as those in nearby expensive resorts, and played guitar around the fire each night. Not such a bad life.
In Arizona there are whole communities that spring up each winter, full of people living in their RVs. Advantages of RV housing are obvious, and include moving with the seasons, trying out different places, and not paying property taxes. I've talked to people living in Rvs that cost $200,000 and ones that cost $600, so the selection of accommodations is varied, to say the least.
My wife and I lived for almost a month in our conversion van as we traveled from Arizona to Florida and then to Michigan. Advantages of a van include better mileage than an RV, and being inconspicuous. We found that could park and sleep almost anywhere.
Other Alternative Housing
In most areas where rents are high, renting rooms has become common. This makes sense for single people. Just pay a set amount each month or week, and (if it includes utilities) you have a predictable and lower cost of living. I rented out rooms in my own home for years, and even put carpet and lighting in a shed so I could get $50 per week for it in summer.
A friend of mine lived in a shack he built for $3,000 on a small piece of land he bought for $7,000. Eventually he ran into problems with the county because he had no occupancy permit. Apparently you can't live on your own land in the woods if your home is too small. However, you can camp on it, so a $2,000 used RV parked on your land makes for a cheap and legal housing alternative.
Some people live on houseboats and avoid paying property taxes. Some live in the jungle near the beaches in Hawaii, so they can afford to be in paradise. I know people who lived in a basement while slowly building the house above for cash. People live in cabins built in the national forest wilderness, moving every few years as they are discovered. Truly, your imagination is the only limit to your alternative housing options.
Alternative Housing That Moves
Camping at a hot springs area, we sat around the campfire one night with several young men living in the desert in their old converted school bus. It cost them nothing to park it in the desert (on BLM land you have to move every two weeks, though), bathed for free in hot spring tubs that were as nice as those in nearby expensive resorts, and played guitar around the fire each night. Not such a bad life.
In Arizona there are whole communities that spring up each winter, full of people living in their RVs. Advantages of RV housing are obvious, and include moving with the seasons, trying out different places, and not paying property taxes. I've talked to people living in Rvs that cost $200,000 and ones that cost $600, so the selection of accommodations is varied, to say the least.
My wife and I lived for almost a month in our conversion van as we traveled from Arizona to Florida and then to Michigan. Advantages of a van include better mileage than an RV, and being inconspicuous. We found that could park and sleep almost anywhere.
Other Alternative Housing
In most areas where rents are high, renting rooms has become common. This makes sense for single people. Just pay a set amount each month or week, and (if it includes utilities) you have a predictable and lower cost of living. I rented out rooms in my own home for years, and even put carpet and lighting in a shed so I could get $50 per week for it in summer.
A friend of mine lived in a shack he built for $3,000 on a small piece of land he bought for $7,000. Eventually he ran into problems with the county because he had no occupancy permit. Apparently you can't live on your own land in the woods if your home is too small. However, you can camp on it, so a $2,000 used RV parked on your land makes for a cheap and legal housing alternative.
Some people live on houseboats and avoid paying property taxes. Some live in the jungle near the beaches in Hawaii, so they can afford to be in paradise. I know people who lived in a basement while slowly building the house above for cash. People live in cabins built in the national forest wilderness, moving every few years as they are discovered. Truly, your imagination is the only limit to your alternative housing options.
Saturday, May 1, 2010
6 Reasons Why You Should Buy Real Estate in December
December and New Year's Day give you the perfect occasion to buy real estate. Not only can you pick up a bargain property from a motivated seller, you can save on your purchase expenses.
1. Home shoppers put off looking for a home because of holiday decorating, shopping, and parties. Plus, the cold weather makes home buyers prefer to stay home; they wait for warm weather to buy real estate. Get the edge with little competition from other buyers.
2. Home sellers who didn't sell during the recent buying frenzy are worried that their home will not sell. Any seller offering their home for sale during the holiday season is motivated.
3. Real estate agents need to keep their momentum going and can't afford to take too much time off. When the agents aren't as busy, you get better service. Plus, they're more likely to take low offers seriously. Agents love investors ready to buy real estate during December.
4. Interest rates continue to creep up. Who knows what the rates will rise to next year?
5. Lenders threaten to tighten up qualifications next year. Last summer, loan officers were able to get through almost any loan. Today is your best shot to buy real estate and get a great rate with the easiest qualifications.
6. Appraisers need work. Too many individuals became real estate appraisers when there was too much work. It used to take a week or more to schedule an appraisal. We just ordered an appraisal and the appraiser wanted to come out the same afternoon! Also, appraisal fees cost less today than last month.
Clear some time from your busy holiday schedule and go find a bargain house. Make many offers. You won't get this break for another year.
Copyright © Jeanette J. Fisher.
1. Home shoppers put off looking for a home because of holiday decorating, shopping, and parties. Plus, the cold weather makes home buyers prefer to stay home; they wait for warm weather to buy real estate. Get the edge with little competition from other buyers.
2. Home sellers who didn't sell during the recent buying frenzy are worried that their home will not sell. Any seller offering their home for sale during the holiday season is motivated.
3. Real estate agents need to keep their momentum going and can't afford to take too much time off. When the agents aren't as busy, you get better service. Plus, they're more likely to take low offers seriously. Agents love investors ready to buy real estate during December.
4. Interest rates continue to creep up. Who knows what the rates will rise to next year?
5. Lenders threaten to tighten up qualifications next year. Last summer, loan officers were able to get through almost any loan. Today is your best shot to buy real estate and get a great rate with the easiest qualifications.
6. Appraisers need work. Too many individuals became real estate appraisers when there was too much work. It used to take a week or more to schedule an appraisal. We just ordered an appraisal and the appraiser wanted to come out the same afternoon! Also, appraisal fees cost less today than last month.
Clear some time from your busy holiday schedule and go find a bargain house. Make many offers. You won't get this break for another year.
Copyright © Jeanette J. Fisher.
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