American-Dream-

Homeownership is Still a Huge Part of the “American Dream”

There have been some who have voiced doubt as to whether or not the younger generations still consider buying a home as being part of the “American Dream”. A study by Merrill Lynch puts that doubt to rest.

According to their research, every living generation still believes that owning a home is in fact important. Here are the numbers:

Homeownership is an important part of the American Dream | Keeping Current Matters

This should not surprise us as many studies have revealed the benefits enjoyed by the families who own their own home. One such study was done by the Joint Center of Housing Studies at Harvard University that addressed a major financial benefit to owning your own home: forced savings. The report explains:

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

The Merrill Lynch study proves this point with the following data on home equity (a form of savings):

Average Home Equity | Keeping Current Matters

Bottom Line

There are many reasons that owning a home makes sense. The financial reasons are powerful. As one participant in the Merrill Lynch study put it:

“When I was younger, I always worried about that monthly mortgage payment. Now that I am retired, I have the peace of mind of knowing I own my home free and clear.”

 

Article from www.keepingcurrentmatters.com

 


 

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Why You Should Hire A Professional When Buying A Home!

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide if you are Traveling a Dangerous Path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift out the homes that do not fit within the parameters of your “dream home”.

A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

 

Article by www.Keepingcurrentmatters.com

 


 

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New York Times

New York Times: Homeownership is Best Way To Build Wealth

The housing market has made a strong recovery, not only in sales and prices, but also in the confidence of consumers and experts as an investment. In a New York Timeseditorial entitled, Homeownership and Wealth Creationthey explain:

“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Many of the points that were made in the article are on track with the research that theFederal Reserve has also conducted in their Survey of Consumer Finances.

The study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).

The National Association of Realtors (NAR) expanded on the Federal Reserve’s research and projected that by the end of 2015, the average homeowner will have nearly 41x the net worth of a renter. Their findings are detailed in the graph below:

Increasing Gap In Family Wealth | Keeping Current Matters

One reason for this large discrepancy in net worth is the concept of ‘forced savings’ created by having a mortgage payment and was explained by the Times:

“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”

“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”  

Bottom Line

“As a means to building wealth, there is no practical substitute for homeownership.” If you are a renter who is considering making a purchase, sit with a local real estate professional who can explain the benefits of signing a contract to purchase over renewing your lease!

Article by – KCM KeepingCurrentMatters


 

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BXTMNN HOUSE WITH COINS DROPPING OVER IT RE PROPERTY MARKETS HOUSING COST BILLS  PRICES MORTGAGES FIRST TIME BUYERS ETC UK

Is There More of a Role for Investors in a Real Estate Recovery?

It’s been a rough ride for homeowners and many investors since 2006 when it seemed that the good times would never end. But they did. The millions of foreclosures have done a lot to put a damper on the American Dream. The younger generations are no longer set on buying that first home. Many of them are living with their parents because they can’t even afford rent.

Investors have stepped up over the past six or more years, accounting annually for more than 30 percent of all home purchases. Some of that buying has been in blocks of hundreds or thousands of homes by major investors like the Blackstone Group. One recent headline tells us that the percentage of purchases by investors rose to 42 percent in one month. As long as the foreclosures keep coming there will be investor participation, but the competition for good houses has heated up. That competition is bringing higher prices, thus the media articles about a “market recovery.”

It’s weak, even if we can call it a recovery at all. There is still a large hole which the first time buyers used to fill. Just tracking prices isn’t working like it has in past markets. This is a new situation, and old statistical models may be misleading. The multiple strategies used by investors have all worked really well over the past few years:

• Wholesaling: Investors use location and negotiation skills to locate properties at deep discounts and then quickly sell them to other investors who wouldn’t have found them on their own. The sale can also be to a retail buyer, but there’s far less of that activity in current markets.
• Fix & Flip: The investor buys a distressed property and does renovation and repairs, many times selling them within three months or so to a rental property investor or possibly a retail customer.
• Rental Investors: These people buy homes with the long-term goal of renting them out for positive monthly cash flow over expenses, and a profit from appreciation at sale in the future.

All of these strategies are still working, but they’re mostly just contributing to the movement of Americans from homeownership to tenant status. This may be the future, at least for the next five to ten years until the economy has a chance to improve and unemployment decreases. It’s been a nice ride for real estate investors, and it’s not over. However, if we consider the dream of homeownership wounded but not dead, things will turn around at some point and buyers will be back. However, they may want to buy but still be hampered by their credit, lack of down payment cash, employment uncertainty, or student debt.

Even long-term rental property investors must have an exit strategy, and it’s in that exit strategy that investors may be able to help renters move back to ownership. The goals of both parties are aligned, as the buyers will be taking the home off the books of the investor when they want to liquidate the investment. Perhaps there’s a way to increase the number of potential buyers for that investment property by making it easier for them to buy.

Rent-to-own or lease-purchase arrangements have been around for a long time. A buyer who may not be ready to purchase but would like to do so can lease the home with an option to buy at some point in the future. They may need to build a down payment, or improve their credit. There are a number of benefits for the investor in this type of arrangement:

1. The tenant buyer really wants to own the home, so they’ll take better care of it.
2. The lease agreement may be structured with the tenant buyer paying some of the repairs and maintenance, definitely not part of a regular lease.
3. In many cases the tenant buyer will pay a higher rent, increasing cash flow.

A rental home investor with a plan to sell a home five to eight years in the future, perhaps to buy a more expensive rental or invest elsewhere, normally would just follow their plan and list it for sale. They’re already marketing the home for tenants, but now could take a different approach. How about helping a strapped tenant who wants to own but has a few hurdles to jump? Instead of just marketing for a tenant, changing the marketing approach to locating tenants who want to own could work for both sides.

The investor gets a three to five-year lease-purchase agreement providing the tenant with the option to buy on or before the lease expires. The timing of the expiration is when the investor wants to sell. The price is set to provide the desired profit for the investor. The tenant buyer has a plan with a due date, and they can begin to move toward ownership, taking great care of the home. It’s really no big change for the investor, just a different marketing approach. Should the tenant not exercise their option to buy, the investor is just fine, as they can list the home for sale as they would have anyway. It’s a win-win and may help bring back the dream.

Written by Dean Graziosi– New York Times Best Selling Author


 

 

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Renters Insurance

How Renters Insurance Will Help Cover The Loss of Your Valuables

Red Rock Management (www.RedRockManagementLV.com)  encourages all tenants to purchase renter’s insurance.  Many tenant’s inquire as to why we ask them to purchase rental insurance.  Below is an outline by Farmers Insurance as to the importance of having renter’s insurance.

HOW RENTERS INSURANCE WILL HELP COVER YOUR VALUABLES

Imagine a moment you’ve just returned home from a long day at work to find there’s been a fire. Everything you owned has been destroyed: your flat-screen TV, computer, furniture, books, game consoles, CDs, jewelry, collectibles and clothing. Where will you stay until your home is renovated? Who will pay to replace all your belongings? Not your landlord.

A Renters insurance policy can be the answer. It provides coverage to help you to replace your lost or damage items. If you suffer a covered loss, we’ll reimburse you for your lost or damaged items. And if the loss makes your home uninhabitable, we’ll also pay for the additional living costs for hotel, meals and related expenses.

Renters policies are affordable, generally ranging from $15-$25 each month. For less than a dollar a day, you can have valuable insurance coverage!

BENEFITS

– Personal property coverage

– Personal liability coverage

– Additional living expenses

OPTIONAL COVERAGES

– Personal articles floater

– Jewelry, furs, fine arts

 

 


 

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House with cash

Buying with cash saves cash – and time

An article by Real Estate Agent Leslie Sargent Eskildsen, discusses the differences of Buying a house with cash or taking out a loan.

She writes, “Just recently, a reader asked me about the difference between buying a house with cash and buying a house with a home loan. That’s a great question!

Here’s a rundown of the differences.

Buying a house with cash saves you money. You don’t have to pay for an appraisal. That doesn’t mean you can’t or shouldn’t pay for an appraisal, you just don’t have to.

Buyers using a home loan have to pay for an appraisal. The lender requires an unbiased, licensed appraiser to give a thoroughly researched and documented report on the value of the home so the lender is confident you’re paying the right price and that they are making a sound investment.

A home buyer paying cash also saves on other lender related costs including a credit report, loan origination fee, flood certification, tax service fee (the lender has to be aware of any back taxes owed) lender required title insurance and any points a borrower chooses to pay to bring down the interest rate on the money borrowed.

In addition, a cash buyer is not required to purchase home owner’s insurance.

When you get a home loan, the lender requires evidence of insurance, and you pay for a full year up front.

I’d never recommend not buying home owner’s insurance. However, when you’re buying a house with cash, you can work it out directly with your insurance carrier as to the frequency of payments.

When you are buying with cash, you also save on escrow fees including the loan tie-in fee, the loan documentation prep fee, and the notary fees (you’re not signing anything that needs to be notarized).

The more subtle aspects of buying with cash include the need to prove you have the cash up front with your offer. This means you need to submit, up front, bank statements showing sufficient funds to cover the price.

If you are flush with tons of cash, you may want to keep a bank account that only has a balance large enough to cover the cost of the house and your share of the escrow fee and a processing fee.

You have no need to show the seller how much you have overall.

You get to keep your financial status a secret, as opposed to a buyer getting a home loan. Those who buy with a loan have to provide full financial disclosure to the lender to qualify for the loan.

There’s much less paperwork required when buying with cash. You can also close escrow much more quickly. You do not have to budget time for the appraisal review, underwriting review, management review, and all the time to prepare and review loan documents.

There’s also the advantage of representing less risk to a home seller. If you show the seller the money up front, and if your offer is a figure that is acceptable to the seller, you will probably win out over a buyer who needs a loan. Cash is much easier and less risky.”

 

Source: OC Journal – leslieeskildsen.com.

 


 

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Looking to maximize your rental income without spending a lot of money out-of-pocket?

Looking to maximize your rental income without spending a lot of money out-of-pocket? Tenants don’t want to cook in a dark, cramped, outdated space. Increase the wow-factor of your property by updating your kitchen. Stainless steel appliances are nice, but if you’re remodeling on a budget, read on for some easy, low-budget ways to improve your kitchen. Plus, if you decide to sell in the next 5-10 years, a mid-range kitchen remodel  can give you up to a 70% return on your investment, according to Remodeling Magazine’s 2015 Cost vs. Value Report

Paint Cabinets White

Are your kitchen cabinets a little beat up? Do you have wood cabinets that look dated and make the room gloomy? You can easily upgrade your kitchen by painting your cabinets white. White cabinets work with all types of design styles, so whether your tenant’s style leans more toward rustic or modern, they’ll be able to make their belongings fit nicely. White cabinets also give you a neutral palette to try out an array of stylish backsplashes or even a bold color for a statement wall.

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Via Modernize.com

 

Add Interesting Lighting

Lighting is an inexpensive way to add some real style to your kitchen. Pendant lamps or even a chandelier are great tools for integrating your cooking and eating space–whether it’s a breakfast nook or an adjacent dining room. You can also play with scale to make a cavernous space feel more intimate or a small space more cozy and welcoming.

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Via Modernize.com

If you have a kitchen that tends to get very hot, consider adding a light fixture with a ceiling fan. Your tenants will appreciate it in the warm summer months.

 

Maximize Storage Space

Even if you have a small kitchen, you’ll be able to meet the needs of your tenants with some smart storage solutions.,. Install multiple shelf units within cabinets to double and sometimes triple the storage space. In the area under the sink–always tight because of plumbing–install some handy door racks inside the cabinet to keep supplies organized. You can also make the most of those faux drawers (typically found below the sink) by converting them to tilting drawers that hold sponges and other small cleaning supplies. If you’re working with limited space for dishes, utensils, spices or small cooking accessories, look underneath the cabinets. There are ample options for installing racks with hooks to hang coffee mugs or utensils; magnetic strips for cutlery sets, dish drying racks and even spice shelves. The space underneath cabinets can provide an incredible amount of unexpected storage space, and in a neat and tidy manner.

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Via Modernize.com

 

Utilize a Non-Traditional Island

If you have the space, consider adding an island to your kitchen. The island will provide valuable counter space for preparing meals and can serve as a dining room table for small family dinners or as a serving buffet during parties. Depending on the type of island you select, you may also be able to get some extra storage space out of it. You don’t have to spend a lot of money of a factory produced island (that may or may not match your cabinets). Instead, consider non-traditional islands like a repurposed dresser or bookshelves. Here are some great DIY inspirations for kitchen islands. Whatever you end up using, just make sure to fasten the island to the floor to keep the surface stable.

 

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Source : Bryn Huntpalmer, Editor of Modernize.com Via Modernize.com


 

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Now’s the Time to Buy for Some

Now’s the Time to Buy for Some
For some, now is a great time to buy real estate, especially Las Vegas real estate. Home
values are poised perfectly for an upswing in appreciation. There is a demographic of people
who can really score in this market. According to Yahoo:
“Dual-income customers should definitely buy a home now,” says George Kaiser, vice president
of banking operations for Northbrook Bank and Trust and West America Mortgage Co., its
sister company. “People with assets in reserve and a credit score of at least 680 should buy
as well. Anyone with a credit score less than that will have to verify their income.”

For others it is also a great time to get involved. For some it’s not. If you need help
determining whether or not the Las Vegas real estate market is right for you now get in
contact with your Las Vegas Realtor at www.RedRockManagementlv.com.


 

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3d Property insurance concept

Is Your Home Insurance High Enough?

Is Your Home Insurance High Enough?
The news commonly reminds us of unexpected disaster and loss of home. This Wall Street
Journal article suggests we get our insurance in order. Many of our homes may not be insured
properly for possible issues. We don’t intend to scare home owners but want to point out
that there are ways to verify if the home is properly insured or not.

Las Vegas is known for its storms during the monsoon season. A community can be flooded
quickly. There is a resource home owners can use to determine whether they live in a flood
plain or not. It is a web site with all of the flood zones outlined. Las Vegas Realtors can
provide you with that resource.


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Red Rock Management
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commercial-real-estate-news

Local Real Estate Markets May Get Involved in Housing

Local Real Estate Markets May Get Involved in Housing, Literally Buying and Selling Homes
An article in CNN this morning was very intriguing and will likely spark some political
skirmish. As mentioned in the article:

“Under the House plan, the Department of Housing and Urban Development would dole out the
loans and grants based on the number of foreclosures and home prices in an area. Cities
could use the money to buy foreclosed homes, renovate the homes to make them compliant with
housing codes, and resell or rent them.”
The goal is to help keep neighborhoods and the city as a whole in good shape since there are
so many vacant homes on the market. They tend to be run down.

In Las Vegas we’re seeing a significant number of homes that are vacant. There has been
issues with dilapitated homes and associated values. Some Las Vegas real estate agents are
wrapped up in these properties and are able to get good deals on them. However, if buyers
aren’t available it takes some technique to sell these properties. We’ll keep an eye out to
see if the bill passes.


 

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