Flipping

Flipping – The number of single-family residences and condominiums resold within six months.

Foreclosure Notices and Sales

Foreclosure Notices and Sales – Properties that have received foreclosure notices — Notice of Default (green) or Notice of Trustee Sale (blue) — or have been sold at a foreclosure auction (red) by month.

Are you considering buying a new property as a second home or investment? Perhaps you are looking for a small cottage or apartment where you can escape for vacation, or maybe you want to have another home closer to family. Maybe you want to rent out your second property and make a steady income from your investment. Whatever the reason, a second piece of real estate can be a fantastic investment. However, sometimes getting a mortgage on your second home can be a challenge.

Generally, a mortgage lender will have tougher standards for second home loans than primary home loans. This is because usually when you are buying a second home your finances will be stretched thinner and you will have less money to spare because you are already paying a mortgage on your primary home. This will mean that your second home mortgage can be harder to get and might have a higher interest rate.

Here are some tips to keep in mind that will help you to get the best mortgage on your second property: Build up a decent amount of savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job.

Pay off any credit card debt. Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.

Use the first mortgage as a good reference. If you have always made your payments on time and you are most of the way through paying off your first house, you could ask someone from your current mortgage company to vouch for you. The lender for your second mortgage will be reassured that you are a reliable person to loan money to.

These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible. To find out more about investing in a new property, contact me at info@robbittle.com or phone me at (916) 580-8686. Keyword: Roseville Property

With some of life's milestones, there may not be a picture-perfect time to take the plunge. But when it comes to buying your first home, the combination of good market conditions and your own financial situation can dictate timing. If you've got the credit and down payment, you'd be crazy not to buy now. Want to know why?

Rates are still low

The Federal Reserve was expected to raise rates this summer, but so far they have stayed put. There is still talk that rates could go up before the end of 2015. So what does that mean for buyers? Well, if you're a millennial, a rise in interest rates could spell bad news.

"If mortgage rates hit 6%, a third of millennials (people younger than 35 years old) wouldn't be able to afford homes as they're currently listed, according to an analysis by HouseCanary, a housing-data analytics company," said Money magazine. "Mortgages are huge loans, so a seemingly small shift in interest rates can change a borrower's monthly payment by hundreds of dollars (though going from the current 4.08% rate to 6% is in no way a small shift)."

Investopedia's example using a $215,000 home with 20 percent down (leaving a $172,000, 30-year mortgage) figures a monthly payment of $821.15 at an interest rate of four percent and $923.33 at five percent. Is that $100 a month enough to get you moving?

Millennial Couple

New low down payment loans

First-time buyers have typically gravitated toward FHA loans for their low credit score requirements and down payments of just three and one-half percent. But new loans from Fannie Mae require as little as three percent. Known as the 97% LTV (Loan To Value) loan or Conventional 97, it can be more affordable for first-time buyers because "the Conventional 97 program does not require an upfront mortgage insurance premium, and because its annual mortgage insurance rates are cheaper, too," said The Mortgage Reports.

Rising rents

In many market, home prices are up significantly from their lowest levels several years ago, but are still within range of many buyers. Rents, on the other hand, continue to go up, pushing household spending to new, uncomfortable, heights.

NMS Properties

"Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties recently analyzed by RealtyTrac," said Mortgage News Daily. "Across all 285 counties analyzed, the average percentage of median household income needed to rent was 29.96 percent while the average percentage of median household income needed to buy was 29.00 percent."

Tax deductions

When you pay rent, the entirety of your payment goes to the landlord or property owner, and all you get in return is a temporary place to stay. When you own your home, the government essentially pays you money back for your investment.

"Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest," said Bankrate. "And all that interest is deductible, unless your loan is more than $1 million."

Any points you paid on your loan are also deductible the year you paid them, as are your property taxes. "These taxes will be an annual deduction as long as you own your home," said Bankrate. "But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible."

Lower PMI

First-time homebuyers who put less than 20 percent down on an FHA loan will have to pay Private Mortgage Insurance (PMI). It's one of the drags of having limited cash. For the past several years, those payments have cost buyers an annual premium of 1.35% of the loan balance, but a recent change dropped the premium to 0.85%.

"This change is expected to save more than 2 million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years," said Credit.com.

Remember also that your PMI may also be tax deductible, subject to a few restrictions (and remind yourself again what portion of your rent is deductible: none).

The article below is for real estate professionals to use for their own blog or website. BreakthroughBroker.com provides this information in partnership withMySmartBlog

When you buy a [city] home, you need to know exactly what you’re buying. Imagine how frustrated you’d be to find out that the hot water heater wasn’t working—in the middle of a shower! This is why you should have a home inspection before you buy your home. A home inspection is an important part of buying your home. Before you hire a home inspector, ask candidates a few questions to make sure you hire a trustworthy inspector.

1. What does your inspection cover? Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the [city] home. If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out.

2. Are you licensed or certified? If you live in a state that licenses home inspectors, ask to see their license. At the very least, choose a home inspector who belongs to American Society of Home Inspectors. This shows a level of professionalism and education that you can trust.

3. What kind of report will you give me? You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection. Make sure the inspector will be available to explain anything on the report that doesn’t make sense to you.

4. Will I be able to attend the inspection? If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairsyou or the seller will have to make.

As your real estate agent, I will guide you through the home buying process. Let me help you find your new [city] home. Call me today at [phone] or email me at [email]. KEYWORD: [city] home LINKS:

1. Home inspection - http://en.wikipedia.org/wiki/Home_inspection 
2. American Society of Home Inspectors. - http://www.ashi.org/ 
3. Easy household repairs. - http://home.howstuffworks.com/home-improvement/repair/5-home-repairs-you-should-do-yourself.htm

WHY INVESTMENT REAL ESTATE? Why invest in real estate? The first reason is fairly obvious. Most financial planners recommend that investors accumulate a diversified investment portfolio that consists of some stocks, bonds, and assets such as real estate. Another reason for holding real property for investment is that sometimes real estate can outperform the stock market. A TEN-YEAR COMPARISON According to the National Association of Realtors, the median home resale price in 1991 was $97,100. With a 20% down payment of $19,420 and a $77,680 mortgage, an investor could have purchased the median resale home for $97,100. At the end of 2001, that median price of that home was $147,500. Through only price appreciation, an investor would have gained $69,820.  [Note: This increase in equity does not include the equity growth through the pay-down of the mortgage over the same period. Assuming a 30-year loan at 8%, if this was included, they would have an additional $8,917 in equity growth.] Assume an investor put $19,420 into the Vanguard 500 Index fund over the same time period. Over the same ten-year time period, it would have grown to $60,593, after paying taxes on the capital gains and dividends. Since the Vanguard 500 Index Fund generally did better than most other managed mutual funds over the past ten years, it’s fair to assume that property owners holding real estate for investment outperformed investors holding stocks and bonds in the same time period.

REAL ESTATE VS. A MUTUAL FUND     

Real Estate Index Fund 1991 Equity      $19, 420                 $19, 420

2001 Equity                                        $69, 820                 $60, 593

10 Year Annual Return                          13.7%                     12.1%

5 Year Annual Return                            18.8%                     10.1%

3 Year Annual Return                            20.5%                     (1.5%) 

THE POWER OF TAX DEFERRAL  The comparison above only looks at the appreciation of real estate held for ten years compared to an Index Mutual Fund held for the same time. The benefits of owning investment real estate become even more dramatic after calculating the costs of sale. If the index fund is sold, the investor must recognize capital gain taxes; however, the investor who exchanges their investment property will have all their equity available for purchasing more real estate. This increase in purchasing power is another tremendous advantage in owning real estate held for investment as an important asset in a diversified investment portfolio. 

  © 2006 Asset Preservation, Inc. 

Staging your home for sale - There are many things you can do to stage your home that don’t are completely FREE.  There are five things you can do to get your home ready for sale.

Make sure to Clean, Clean and Clean Some More

When home buyers walk into a home they are looking for a home that is well cared for.  If you home is super clean it has passed the first buyers test and they feel more at home.  

Clean everything from dusting ceiling fans, door frames, blinds, light fixtures, the stove, microwave, all windows inside and out, Don’t leave a single spot in your home untouched.  Potential buyers look everywhere, so make sure the entire home is spotless. 

Depersonalize the house

Make sure to pack all personal photos and family keepsakes.  You can leave one family photo  because it plants a seed of happiness in the buyer’s mind, making them think how happy their own family could be living in the home.  

Potential home buyers have a hard time seeing their family in a house that has your family pictures, portraits and keepsakes so make sure they are packed away out of view. 

Remember you are not selling the family, you’re selling the house.  So always let that be the center of attention. 

Pack Everything You Don’t Need

You can live without many things you own for a short period of time, especially if you have lived in your home for more than 3 years.  People have a tendency to collect things rather they use them or not.  When selling your house the most important thing is showcasing the space your home has to offer potential buyers.  Remember you can’t showcase rooms in your house that are full of your stuff, especially too much furniture.

It’s best to pack as much as you can live without and store it away from the house.  Remember buyers look in the garage also and picture their car there but they can’t when it’s full of your stuff.

Spruce up the Front Yard and Door

The front of your house is the buyer’s first apian of their home.  If you can spruce it up with flowers and make sure grass is cut and bushes trimmed.  Also make sure the front door area is clean and inviting.  This will give the buyers a positive attitude going into the house.  

When Showing Make Sure Home is Light and Smells Great

Make sure your home is bright with lights on and blinds open.  Turn on every light in the house even the light over the stove and inside the oven, (remember the appliances are pristine and need to be shown off).

Buyers are looking for “light and bright,” not “dark and dreary,” so make sure to give them lots of light.  

It takes a lot of work to get your home ready to sell.  Even without a staging budget, you can still take the time to make I few changes that will have a positive impact on your home sale.