Is Housing Too Expensive?

The face of America's population is changing by the day. With the onset of many lower-income jobs and the flux of workers in the job force who are making the federal minimum wage, the financial situation of the country's population has been shifting. Along with this shift comes the inevitable shift in the country's housing situation. With incomes and housing rates in flux, America's housing situation has been steadily worsening and may very well reach a crisis point in the near future.

In many areas of the US, a recent study finds, the average minimum-wage worker cannot afford the rent and utilities on an average apartment. This study assumes that no more than 30% of a worker's income goes towards rent and utilities- the government considers a percentage higher than that to be too much. In a country where owning a home is a major status symbol, it is a cause of real concern when a large segment of the population cannot even afford to rent one. Are real estate costs getting out of control?

For an average two-bedroom rental apartment in the United States, the average worker must earn, according to the government, in the area of $15 an hour. With the minimum wage currently at about a third of that amount, the fact is that many families cannot afford to keep the roofs over their heads, much less save money to someday buy a home. The fact remains that wage increases have simply not kept up with the booming costs of real estate rentals and utility costs. While rent costs are climbing, utility costs are climbing faster still. And it's also worth noting that in areas where housing costs are lower, wages are on average also lower, so there is not much benefit to be gained by relocating. The minimum wage has not changed in the United States since 1997, while the costs of housing continue to rise.

The US government has also fallen behind on their spending towards Section 8 rental vouchers, which help low-income people pay their rent. More landlords than ever before, particularly in metropolitan areas, accept Section 8 vouchers; but since government spending towards these vouchers has not kept up with demand, they are becoming more and more difficult to get. As housing costs increase, those who depended on Section 8 can no longer do so.

Not surprisingly, rent in rural areas is the most affordable, and California is at the top of the list when it comes to hourly income needed to afford a typical apartment. It's a difficult situation for anyone who is having trouble making their rent: The option to move somewhere cheaper, but make less money, is not much of an option.

 

   

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.

Is Bay Area Real Estate Risky Business?

Bay Area real estate is an ever-increasingly popular investment for prospective property or home owners in California.  The location is prime, and the price is always right.  Whether it is due to the area's oil-rich location near the shore, the beautiful weather, the breathtaking views, or the pocket-fattening constant tourist traffic in San Francisco, the Bay Area is a very popular choice of locations for both prospective real estate agents (who are seeing dollar signs, most likely) and prospective purchasers.

 

Since 2002, property values in the Bay Area have been rising; increases in interest rates have caused the actual cost of some properties to go up as much as 40%.  For this reason, many people are selling their properties at extremely high prices, equaling higher commissions for the real estate agents who receive a portion of the property's purchase price as payment for their services.  Just as there are people who are selling their properties at high prices, there are just as many investors out there who are willing to purchase these slightly over priced homes, office spaces, warehouses, or other properties just to turn around and sell them back when the values shoot up again.  It could be said that, while all investments are risky (especially when it comes to real estate) the values of real estate in the Bay Area is usually easily predicted, and is somewhat a safer and wiser investment than other real estate opportunities that may come your way.   The average price of a home in the Bay Area is in the neighborhood of anywhere from $500,000 to $650,000 and while your investment could backfire should these properties drastically decrease in value, smart bay area real estate investors wait to sell until the prices go up, maximizing the profit margin they could make off of the sale..  Of course, breaking even never sounds as good as making a hefty profit in your financial endeavors, but as an investor in Bay Area real estate using your head can have you doing well for yourself most of the time if not all of it; it is important not to forget that a reserve of start up funds is always necessary to enter into such a hefty investment as Bay Area real estate.

 

Bay Area real estate investors are beginning to start up a pattern of spending beyond their means when it comes to these high-priced properties.  Federal guidelines state that one should not take out a mortgage that equals more than 30 percent of your total monthly income; most wise people would take such legally mandated "advice" to heed, but more and more people are throwing monetary caution to the wind and, in attempts to catch a prospectively profitable investment opportunity many do get caught up in the ever-increasing housing market crashes, losing money in the end.  Of course, some people are more affected by this than others.

 

Bay Area real estate is a great investment for the smart investor, who knows the market well and pays attention to the fluctuations in property values.

 

   

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.

Is a Townhouse for You?

With the huge variety of real estate choices on the market today, many people aren't even clear on what a townhouse is, much less whether or not it's the right choice for them. So what, exactly, is a townhouse?

A townhouse, also called a rowhouse, is actually very much the same thing as a condominium, with one technical difference. Both are housing units that are physically attached to other units on either side- thus the name rowhouse, since they stand in a row. But in a condominium, the land the houses stand on is owned by someone else. A townhouse, on the other hand, means that the person living in the home owns the land it is sitting upon.

Townhouses can be single or multiple stories. Each townhouse has a small patch of yard or perhaps a patio in the back or front, and the lawns are divided equally among the houses. This is a definite advantage over apartment living, where many housing units are in the same structure and thus there is no property division on the ground. Townhouses can be grouped into pairs as a duplex, or in larger groups that form a main complex. Townhouse owners are generally required to keep up their own section of lawn, and may be required to pitch into maintenance of any common areas as well.

So who benefits most from this style of living? For many people, the idea of living in an apartment grows old quickly. Having neighbors above, below, and around you can be tiresome; the lack of a yard is also a drawback. However, many people either cannot afford or do not wish to own a single family dwelling. Townhouses give buyers the option to own a house that is still part of a housing community.

Townhouses are ideal for the elderly, or for young families just starting out. The mutual walls give a sense of security, although of course there is also a loss of privacy. Having a small patch of yard to tend, rather than a full lot, can be a blessing for those who are unable to tend a full yard. A townhouse can be a great starter home for young couples with children.

Of course, because a townhouse is indeed part of a housing community, there are rules which homeowners must agree to follow. Often townhouses are subject to the rules of housing associations, which limit decorations and modifications that can be made to houses or yards. Many townhouse communities prefer to present a unified front, and changes must be approved before they can be made.

For those who are interested in a community style of living but do not wish to remain in an apartment, a townhouse can be an excellent substitute. Townhouse living is available in all kinds of neighborhoods and in many different styles all over the United States. From brownstones in New York to vinyl sided dwellings in Nebraska, town homes are available at all levels and offer the homebuyer a whole new range of options.

   

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.

How to Find Houses for Sale

 

When it comes to purchasing a home, the choices available can be a little overwhelming. With the onslaught of the internet, it seems there are thousands of ways to locate that perfect home, and a new buyer might be a confused about where to start. There are a few good ways to narrow the selection.

 

First of all, if you know where you want to live, then go there. Whether it's a new city or a new neighborhood, taking a drive through your future abode can open up plenty of possibilities. Realtors and independent home sellers still rely very much on the For Sale sign in the front lawn, and there's no substitute for real curb appeal. This technique has the huge benefit of allowing you to see the properties in person and know immediately if they are worth pursuing. However, it's rather unusual for prices to be listed on For Sale signs outside houses, so try to stick to areas that you know are in your price range. Make sure to bring a camera and a pad of paper, so you can take pictures and write down phone numbers and addresses for future reference. You might end up making an awful lot of phone calls, but it can be worth it.

 

While you're in your new potential city or neighborhood, pick up the local paper. The classified ads are still the time-honored way to get a house onto the market and you'll find no shortage of listings. Prepare yourself to make some more phone calls and do some more driving. We didn't say this would be a quick process!

 

Then again, it can be. For those in a time crunch, there are many ways to find houses for sale that don't involve legwork. Many websites offer specialized house searches, which charge a small fee and do the ad-scanning for you, sending you information on properties that meet your criteria. There are also several companies in your local yellow pages which offer this same service. For those who need to move quickly or don't have the resources to hunt, these services can be lifesavers!

 

Finally, whether you're in a hurry or just browsing, talk to local real estate agents. They'll be able to give you information on what properties they are personally representing, as well as a feel for how prices are running in various parts of town. Keep in mind that agents make money selling houses, not explaining markets, so they won't be able to offer you specialized help unless you're purchasing from them. But if nothing else, their information may be able to point you in the right direction.

 

House hunting is an exciting process no matter how you do it, and there's no right or wrong way to begin. When it's time to go, weigh your priorities and choose your weapon, whether it's a pad of paper and a pen or the World Wide Web. The right property is out there somewhere. The secret is to have fun finding it!

 

  

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.

How Much Home Can You Afford?

First time home buyers are faced with a maze of financial decisions. It's a daunting task to sort through mortgage rates, credit scores, and monthly payments to determine exactly what your price range will be for your future home. Although bankers and real estate agents are there to assist you, it helps to start with a general idea of your bracket. Consider the following things when trying to make sense of your own cents.

First of all, how much of a down payment will you be able to make? Down payments are the reason why first time home buyers are well advised to sack away cash for at least a year before they purchase. The more you can put down up front, the less you have to borrow... and the less interest you'll accumulate.

Once you figure out your down payment, do some research. This is where banks and real estate agents can be particularly helpful. You'll need to get a feel for what kind of interest rates you could get on a home loan, as well as how much you can expect to pay in property taxes and insurance. Once you get an idea of what those numbers would be in your area and with your credit standing, you can get a rough idea of what kind of mortgage you may be looking at. Take a possible price for a home you may be considering. Subtract your down payment from that amount, and then add on the accumulation of interest, property taxes, and home insurance. This is the principal amount you will need to borrow in order to purchase that home. Now you need to discover whether or not you're eligible to borrow that amount, and if you can afford the payments it would require.

Keep in mind that when you do apply for a mortgage, the amount you're able to borrow will be influenced by more than just your credit score. Lenders will also investigate your wages, your expected earnings in the near future, and any outstanding debts. All of this will factor into the calculation of how much you're able to borrow, and what kind of rates you will receive. If the loan for which you're approved turns out to be less than what you'll need for the home you're considering, you must either find a different lender and try to recalculate your terms, or find a less expensive property.

If you're considering purchasing a home in the future, start cleaning up your credit now. Work out payment plans on any outstanding debts, and get a copy of your report so that you can contest any errors. It's also a good idea to start saving for your down payment well in advance. Having a good credit score and cash in the bank are the two most effective ways to get a good loan with a decent rate. If you don't have those two things yet, you should consider putting off your home purchase until you do.

 

 

  

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.

Getting an Appraisal of Your Home or Property

Getting an appraisal done on your home or property is one of the first things you want to take care of when you decide to sell. Just because you think you have some idea of what your home or property is worth, the dollar amount that you come up with is most likely drastically different from the dollar amount that a professional appraiser would come up with.

An appraisal on your home is basically a professional opinion of the worth of your home or property from someone who is trained to analyze such things. Small factors such as a sun room, porch or deck, number of bathrooms and whether they are whole or half bathrooms are all factors that play into the net worth of your home. Good appraisals also take neighborhood characteristics into consideration, such as proximity to local schools, hospitals, and grocery stores. Especially when families are concerned, convenience is something that people are willing to pay for, and the closer a property is to these things, and the better quality of the schools, markets, etc, the more value added to your home in that respect.

 

An appraisal is a professional opinion and is to be respected, but keep in mind that it is just that--an opinion. Opinions are not set in stone, no matter who they come from whether it be your disapproving mother, a circuit court judge, or a professional appraiser. If an appraisal is too high or low, a bank or mortgage company may reject the estimate, there by causing problems and delays for your prospective home buyers, yourself, and any body else that is involved in your real estate transaction.

Depending on the nature of the property, a professional appraiser may take one of several approaches to determining the value of your home. The cost or replacement approach is, in essence, a determination of what the home would cost to rebuild should it burn to the ground. This includes everything; your windows, porch, pool, and even any money you have invested into your landscaping, yard or garden are all taken into consideration. The comparison approach to the appraisal takes into consideration all of the houses that are similar to yours that have sold in your particular area in a given set of time, usually the last six months.

 

From there, the appraiser adds value and takes away value in accordance with the specifics to your home. If you have a basement and most of the other homes similar to yours that sold in the past few months didn't have basements, the appraiser would be able to estimate the value that having the basement adds to the property. If everyone on the block with homes similar to yours had basements, but theirs are finished and yours is not finished, or partially finished, then the appraiser should have some approximation of how much value to take away from the house in accordance with that. The last approach is the income appraisal approach, and it is used more commonly when commercial properties are in question.

 

 

  

www.pinellas247.com

www.suncoastrenttoown.com

Dobler Consulting Inc
2339 Warwick Dr
Oldsmar
FL 34677
United States

To stop further mailings or to change your details, click here.