News About Properties

Distressed sales — foreclosures and short sales of homes sold for less than the amount owed — accounted for 17.3 percent of bay area sales in May. That was more than twice the national rate and the third highest rate among the 25 largest metro areas, CoreLogic reported Tuesday.

Only the Baltimore and Chicago regions had a higher percentage of distressed sales, at 19 percent and 18 percent respectively.

“While distressed sales play an important role in clearing the housing market of foreclosed properties, they sell at a discount … and can pull down the prices” of non-distressed homes, CoreLogic said.

At the peak of the housing crisis in 2009, distressed sales made up 32.4 percent of all home sales nationally. In May, the rate stood at just 8 percent and it is on target to reach the “normal,” pre-crisis peak in mid 2019.

via Distressed home sales in Tampa Bay still high despite improving market.

This is an increasingly common question in our financial planning practice. We find that most of the families we deal with (including some of our own) think that rent money is “thrown away.” This belief is often quite wrong.

When you add up the cost of owning a property, you will find that it is at least eight percent of the total cost of the home. This is true regardless of whether you pay cash or finance the entire amount (if you use your own cash, there is an “opportunity cost” of not having it invested and making money elsewhere .

One way or the other, you are laying out forty thousand a year to live in a half million dollar house.

From a strictly financial viewpoint, if the cost to rent is less than the cost to own, renting is just fine. If you can rent that half million dollar house for twenty five hundred dollars a month (thirty thousand a year), you can assume the owner is paying you ten thousand a year to live in their residence.

via Benefits of buying a home, or renting.

Only about one in eight businesses and residences in East Baton Rouge Parish is covered by flood insurance, a reality that is sure to take a financial toll on those living in the vast swaths of neighborhoods that flooded during this weekend’s storms.

The figure is higher in Livingston Parish, where 22 percent of structures carried the flood policies expressly not provided by homeowner’s insurance, but is slightly lower in Tangipahoa Parish, where about 12 percent of property owners hold flood policies. In St. Helena Parish, just 1 percent of all property owners have flood insurance.

Romine-Ortega said the program is not intended to duplicate what a flood insurance policy would have provided, though the money can be used to help flood victims pay for temporary housing and replacement of household items and personal property, among other uses.

Anyone who thinks they may be eligible can register at disasterassistance.gov or (800) 621-3362.

via Only 1 in 8 EBR residents have flood insurance, meaning many will likely bear brunt of losses.

A new Jersey company said it’s expanding into South Florida with a service that allows home sellers to avoid “the hassle and awkwardness” of negotiating lower commissions with real estate agents.Less Percent Real Estate pairs sellers with local agents who already have agreed to accept less than the typical 6 percent commission.

Sellers can use LessPercent.com to compare multiple offers from agents bidding to sell their homes. It’s free for sellers, who remain anonymous until they select an agent.”We totally stay out of the transaction,” CEO Michael Huegel said. “It’s almost like a dating service.”

via These real estate agents cut their commissions.

At trillions of dollars, it’s no secret that the real estate market has been one of primary resources for the world’s wealthy to to pad their accounts. But contrary to popular opinion, real estate is still a desirable asset class for entrepreneurs with smaller bank accounts.

Individuals who budget wisely and do their research can find good values. It’s important to understand where to look and to time your investment right, as well. If you can find a property in an up-and-coming neighborhood before it peaks, you can make a healthy profit. In addition, don’t be fearful. Buyers without a lot of cash make wise real estate investments every day. There are a range of smart financing options. 

Below are five tips for funding your first real estate investment, and how you can turn that investment into more cash in the future.

via 5 Tips for Investors With Limited Cash to Purchase Their First Properties.

Pete Pollinger and his wife, Julie, are relocating from Boca Raton to Melbourne, a city of about 70,000 on Florida’s Space Coast, named for its proximity to NASA rocket sites at Cape Canaveral and the Kennedy Space Center.

They weren’t just hunting for a place to live. As they get ready to move this year, they’re also looking for single-family homes they can buy, fix, and rent out.  

“We want to be more in control of our financial destiny,” said Pollinger, 51, a computer systems consultant. “As far as traditional investments go, we have less control of what really happens to those.” 

He and Julie hope to build a portfolio of about 10 homes, buying when they see good value or selling a fixed-up home when the market presents the opportunity to take a profit.

via Landlord Nation: Boomers’ New Retirement Plan Is Millennials Paying Rent.