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• September 25, 2009 - Phoenix, AZ, Short Sale Realty Means Great Homes at Low Prices

At a time when current homeowners may be struggling to pay the mortgage on their real estate, new buyers can help prevent the occurrence of a foreclosure. With a short sale, new home buyers can negotiate with the lending agency to establish a new offer that may be significantly less than the cost of the house. The previous owner can avoid a foreclosure on their credit report and the new buyer can get a great deal on the home of their dreams. Take your time to peruse through the Phoenix, AZ, short sale realty options that are currently listed on the market and develop a plan to negotiate a price you can afford to pay for your new home. Click here for a complete list of Short Sale properties.

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• September 17, 2009 - The Housing Market Index Reaches A 16-Month High

Checkout what Jeff Underwood, CMPS, had to say on his Blog: Click here. Just more positive signs of a better upswing in the housing market.

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• August 31, 2009 - Use of $8,000 Tax Credit Expanded

Qualified first-time homebuyers now have another way to take advantage of the federal $8,000 tax credit for the purchase of a principal residence. The American Recovery and Investment Act of 2009 created a tax credit of up to $8,000 for buyers purchasing their first home before Dec. 1, 2009. Previously, homeowners could only use this credit after purchasing a home and filing their tax return with the Internal Revenue Service. On May 29, however, the U.S. Department of Housing and Urban Development (HUD) announced that the Federal Housing Administration (FHA) will allow state finance agencies to provide second mortgages “monetizing” the tax credit. What does this mean in plain English? That homebuyers can immediately use the $8,000 credit toward their down payment and closing costs for the purchase of homes with FHA-insured mortgages.* This is great news for first-time homebuyers who want to take advantage of the low mortgage rates and competitive pricing of many homes today, but don’t have enough money on hand for both a down payment and closing costs. Homebuyers who obtain an FHA-insured mortgage are still required to have the 3.5 percent minimum down payment. But the tax credit can be applied to a down payment in excess of 3.5 percent of appraised value and could possibly help the borrowers obtain a lower interest rate by increasing the total amount down. According to estimates by the National Association of Home Builders, 40,000 more homes will be purchased due to the new FHA monetization program, in addition to the 160,000 sales already expected, due to the creation of the credit. For more information on the tax credit, or to learn about available homes in your area, call our CENTURY 21 office today so we can get you on the path to the home of your dreams. * Consult a tax professional for details.
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• February 9, 2008 - Investors

The old paradigm for real estate investment was to buy an “extra house” and use it as a rental for 30 years while the tenants paid for your house.  Previously, real estate investment was dominated by institutional investors such as banks, savings and loans, insurance companies, pension funds, and foreign investors that supplied private capital for both equity and mortgage investments. 

Investment

Many people are investors by choice; they believe that real estate is a good investment.  For all practical purposes, most investment real estate transactions fall into the category of passive activity.  One of the biggest challenges in real estate investing is determining the right strategy and getting the right real estate investment information for you and for the market that you are in.  The boomers are already migrating to warmer climates such as Arizona  and that will dramatically effect your real estate investments.  How long will interest rates stay low and how will that effect your investments.  Don’t make any decisions about where, when, or how much to invest without thinking about these five criteria for defining your investment strategy and DO NOT START INVESTING WITHOUT A STRATEGY.

Market

Market stability—reasonable return; historically favorable interest rates relative to inflation; a lack of deflation; legal protections for the investor; the leading economic market with the largest GDP—all support investment in property.  Nobody buys a property without first assuring himself that he is paying no more than market value.  Smart bargain purchasers make sure they are paying at least 20% less than market value and they cannot sell the property before they buy it in order to ascertain the market value.  One of the biggest challenges in real estate investing is determining the right strategy and getting the right real estate investment information for you and for the market that you are in.  There are literally dozens of different techniques being commonly used in today’s real estate market.

People have to understand that a real estate investment was never supposed to be a short term one, especially with closing costs and other expenses that relate to the transaction.  The most significant specific effect of this was that the appetite of households for real estate investment was not impaired and prices continued climbing.  To show that real estate investment was not as risky as other investments, we looked at interest rates charged by banks for various classes of investments.

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• June 25, 2007 - Home prices fall for a record tenth-straight month

Click on the link below to read this article.

http://www.msnbc.msn.com/id/19414289/

 

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Paul & Randy are the Homes2Know Team & this is our Blog. Our Blog is designed to be a resource for buyers, sellers, homeowners, and those relocating to the Phoenix area.

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