Stay Away From The Renter’s Trap In Sarasota

August 28th, 2014

Many young adults fall in to the trap that they can not afford a Sarasota home so they will settle for renting out an apartment. They will then lease out the apartment, condo, townhome, or even home and be subjected to a loss of equity in their name by throwing money away. In a recent release from Zillow, as of August 2014, the United State’s is currently seeing better affordability in the real estate market than in the renting market.

Here are some shocking statistics that actually came out from that survey:

  1. Renters paid approximately 29.5% of their monthly income towards rent
  2. Home Owners/ Home Buyers only paid 15.3% towards they mortgage on a home

During the pre-bubble days (2007 and before), people renting right now are actually paying 24.9% more than what they would have back then, whereas the Sarasota home owners are paying 22.1% less.

As rents increase, it is getting harder and harder to live a normal American life with less income in your bank account. According to the Chief Economist at Zillow:

“The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates… As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters.”

In all honesty, you may actually have enough saved up and ready to use on the down payment as HousingWire noted:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment. 
It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” 

If you are still not thinking that you are able to afford a Sarasota Home, look at what Freddie Mac had to say on the issue:

  1. Home owners can get a conventional mortgage with just 5 percent down
  2. During 2009 to 2013, the down payments of less than 10 percent more than quadrupled for Freddie Mac
  3. One in Five home owners who borrowed money put down less than 10 percent

Overall, you can afford that property that you want. Don’t get caught in this rental bubble and throw money towards something that will not provide equity. Instead put money towards a Sarasota Home and enjoy the equity that you will get towards this property.

The True Cost of Waiting To Buy Your Sarasota Property

August 20th, 2014

The True Cost of Waiting To Buy Your Sarasota Property

Looking at analytics on the housing market is exactly what we love to do. Seeing the trends that are occurring in the Sarasota real estate market make it that much simpler to purchase. Waiting to purchase a home is nothing new though. People have been doing that for years and the chance that this will end any time soon is not very high. But if you are a part of the Sarasota property owners who are wanting to move, but do not think that now is the best time, here are some statistics that may change your mind.

If your dream house currently is $250,000 today, the current mortgage rate that you can receive is 4.12%. This will come out to make your month payment with interest $1,210.90. Now if you were to wait one year, with the way that economist have stated the market will rise, the same home will more than likely sell for $270,000 with a 5.3% mortgage rate. After doing the math on a 30 year mortgage, that payment per month is $1,499.32.

This will actually increase your housing payment each month by $288.42. Now maybe waiting is what you wish to do and you want to see if the market does go in the direction that economist are stating, but losing $288.42 per month is almost equivalent to throwing away $10 every day just for the heck of it. That can be a car payment for the entire month, a cup of $2 coffee everyday with $8 left over for lunch, dinner or other spending, or even a way to save up for a nice vacation at the end of the year.

However you spin it, even through the 30 year loan, you will be looking at an additional $103,831 spent on the home. That is due to the $3,461.04 you will be spending each year multiplied by 30. Of course no one can predict the future, but when looking at what may happen next, it is safe to say that economist may have the best theory on what your Sarasota Property may be worth!

Harvard Gives 5 Reasons To Purchase A Sarasota Home

August 14th, 2014

In the recent study from Harvard University, the managing director of the Joint Center of Housing Studies gave his top five reasons as to why owning a home now was a smart financial decision. Of course, our theory has always been that when someone from Harvard tells you to do something financially, it may be a wise decision. Here are the 5 reasons why owning a Sarasota home is a smart financial decision:

1). The Housing Market is the only Leveraged Investment you can do

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2). In the end, you will pay for your Sarasota Home whether you own or rent

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3). Owning a property is another form of saving equity

“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.”

4). You will receive tax benefits while owning

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5). Owning can help with the inevitable inflation

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

What we have taken from this reading is that owning a Sarasota home makes perfect sense for many people, and now it makes perfect financial sense as well!

How Does Sarasota Home Ownership Impact Net Worth?

August 7th, 2014

How Does Sarasota Home Ownership Impact Net Worth?

Home ownership has always been a great way to build up your equity and net worth. Over the past few years though, owning a property has lost most of it’s pizzazz as the ultimate way to increase any families net worth. When looking in to any type of investment though that will hold the strongest, owning a Sarasota home should be at the top of your list.

The Federal Reserve did recently speculate on how great of an investment home ownership truly is for your potential net worth. Here are just a few of their findings from the recent report.

Federal Reserve Sarasota Home Ownership Report

  • The typical American family has a net worth of approximately $77,000
  • Of the $77,000, 61.4% of that amount if from their home ($47,500)
  • Home owners have a net worth greater than 30 times that of someone looking to rent only
  • The typical home owner has a net worth around $174,500, whereas a renter only has approximately $5,1000

Take a look at these infographics as well on these statistics that were found by the federal reserve to see just what home ownership can do for you.

Slide13                                                                Slide14What we are seeing from these statistics though is that owning a home is a great way to increase your net worth, have a piece of the American dream and have a long term investment that will help you in the future. Having a net worth of more than 30x that of a renter is quite impressive to say the least. At the end of the day, it truly comes down to what you believe in. If you want to increase your net worth with a solid investment, then nothing is quite like owning property. We believe that when you put your money in to something as sound as a Sarasota home, that is one of the best investments you can make!

 

Buying A Sarasota Home? You Shouldn’t Do It Alone

July 31st, 2014

Buying A Sarasota Home? You Shouldn’t Do It Alone

In a recent survey by Discover Home Loans, 94 percent of those surveyed stated that they felt they were making a good investment by purchasing a Sarasota home. In that same survey though, only 66 percent of the surveyed group stated that they were working with a real estate agent to see if a home would in fact be a wise investment. In the end though, most of the people that completed the Discover Home Loans survey went through to announce that they were well overwhelmed with the process.

Home buying can be a daunting process. You have to search for the homes you want, see all of the available properties on the market that fit your criteria, make an offer on the one that you would like, go through mounds of paperwork and expect to do this while working a 40+ hour per week job. In the report, here are some of the findings that display just how overwhelmed people can be in the process:

  • Nearly 66% feel overwhelmed with the amount of information available
  • 76% of those under the age of 30 feel overwhelmed
  • 76% of first time buyers feel the same way
  • 54% of those buyers who have previously owned also were overwhelmed
  • 59% of buyers turn to mortgage bankers to help evaluate mortgage terms and comparing offers
  • 49% of buyers turn to real estate agents to help evaluate mortgage terms and comparing offers

The one statistic that pops out to us is the fact that approximately 2/3rd of those surveyed feel overwhelmed, whereas only 1/2th actually used a Sarasota real estate agent.

To combat these statistics, the Chief Economist of the Discover Home Loans company did state, “The industry is becoming more transparent in an effort to help home buyers become informed about changes that may affect their process. The sheer amount of information can lead to confusion and stress. Those looking to purchase should work closely with their lender and realtor to make sure they are comfortable with mortgage terms and understand the impact a loan will have on their finances.

To sum this all up, purchasing a Sarasota home is a wise investment, but can put a lot of pressure on anyone going about the process alone. Real Estate Agents are trained professionals who are here to help you find the home that you desire and to help with all of the paperwork involved. Going about this task alone will prove to be unwise as the stress involved will hurt the final outcome. Working with an agent is the best and more reliable way to make the process as pain free as possible.

Billionaire States Sarasota Real Estate is the Best Investment Available

July 24th, 2014

When a billionaire makes this huge of a statement, you know that this is something to listen up about. No matter how many times we hear realtor.com, zillow, trulia, msn real estate, Keller Williams Realty or even the NAR state that Sarasota real estate is going up, hearing it from a billionaire makes you do a double take. Just how many other billionaires out there are open about their investments?

Sarasota Real Estate

John Paulson made an absolute fortune in 2005 and 2006 by stating that the then mortgage issues would make the real estate market collapse. Overall, you could say very easily that he has a nice understanding of just how the real estate market works. Forbes magazine even went as far as to say that John Paulson is “A multibillionaire hedge fund operator and the investment genius.” Wall Street Journal then stated that Mr. Paulson was “A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”

Now not everyone is a math genius as much as John is, but in his recent interview with the Delivering Alpha Conference, John went on to say, “Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”

At the end of the day, this billionaire made his money from real estate just like we have in our Sarasota Real Estate Market and I can guarantee that when a billionaire makes a statement like this, people will want to know what they are saying.

 

Why Is Keller Williams In Sarasota The Place To Work For?

July 24th, 2014

Difference In Monthly Payments Of Sarasota Real Estate

July 18th, 2014

 

 

 

 

 

 

 

We always love to look at what the Sarasota Real Estate market may look like in the future and today is no different. Selling and buying a home is a numbers game and looking at the numbers can help to make you decide on whether buying now or later will be a wise idea or now. Today we’re going to take a look at the difference in how much you could be paying per month if you decide to wait until 2015 to purchase your next Sarasota Home.

Sarasota Real Estate

As you can see, the numbers are quite high to say the least. We found these numbers by looking at the average cost on the left hand side with the additional 4.2% mortgage rate that you can have right now, in comparison to the estimated 5.2% that will be the average next year. Just looking at the numbers shows that for every $100,000 change, we are looking at an estimated increase in $83.06 per month. That can add up very quickly as in one year you will be paying approximately $996.72 per every $100,000 on the home. As previous buyers of real estate, that is quick the high amount that we may not want to have.

Although waiting may seem like the smart idea, at the end of the day, the mortgage rates for Sarasota Real Estate are set to go up and will not remain as low as they are now. The normal mortgage rate average is usually around 8% and right now we are currently at half of that rate. In one year we may not know exactly where the rates will be, but if Freddie Mac says this is a possibility, we can only imagine that it may get to this point. Buying now may save you more time and money as the Summer months are the best to purchase with other buyers looking to purchase as well. This will expedite any paperwork you may have from the title, mortgage and insurance company as their plates will be full.

Overall, it may make more sense to purchase now than later, but the choice is completely up to you. Saving money per month though is normally the name of the game and as mortgage rates and home prices are set to continually rise, it may be wise to look in to purchasing and selling now.

 

Was Moving Up In Your Sarasota Home Worth The Wait?

July 10th, 2014

Waiting to move up to a bigger and better home always seems like a smart investment when you first go through the home buying process. But is it really that smart of an idea to wait to move up when you could have had that newer home even sooner? Current reports on your Sarasota Home Value have stated that existing homes for sale are increasing month after month. We are noting a change in the real estate market as home owners are becoming more comfortable with putting their property up for sale.

When moving up though, let’s assume that our home was previously worth $300,000 and now we are looking at a $450,000 home. If we put down a down payment of just 10%, you will not have a mortgage of $405,000. Over the past year though, the Case Shiller Price Index stated that the national average increased 10% which would not make our home worth $330,000, but the new home would be worth $495,000. To make calculations easy, let us take the original $45,000 for the down payment plus the $30,000 we gain from the sale of our home in difference to the 2013 value.

Here is exactly what the difference would look like in comparison year over year for the Sarasota Home:

Sarasota Home

 

Now whether or not the additional wait time is worth the $3.27 is completely up to you. At the end of the day though, this is including a down payment of $75,000 which is well over our 10% we compared the 2013 value to. If you are looking to move though, now may be the better time than later. Although homes are still looking to appreciate over the next year, you will also see a potential increase in mortgage rates as well as they are still historically quite low. As per the chart above as well, you may not be seeing too much of a change in monthly mortgage either. But at the end of the say, purchasing your Sarasota Home will come down to how you would like the move to look.

 

Sarasota Real Estate Crushes

June 20th, 2014

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Real Estate crushes are just like any crush you may have had in the past. You find something that you like and you immediately fall in love with it. Crushes are different for every person, and just like a crush you had in grade school, the more you fall in love the harder it is to let go. That is why today we are going to take a look at the top Sarasota Real Estate Crushes for both men and women.

Real Estate Crushes For Women:

54% – Outdoor Living Space

42% – Open Floor Plans

29% – Curb Appeal

29% – Updated Appliances and Fixtures

Real Estate Crushes For Men:

46% – Outdoor Living Spaces

40% – Garages

35% – Curb Appeal

30% – Open Floor Plans

 

When looking at these percentages, the first item that sticks out in our minds is the fact that Outdoor Living Spaces ranked number 1 for both men and women. It seems that each of the genders favored a gorgeous Sarasota backyard, a dream pool or a place to lounge around in the summer over anything else. The great outdoors is definitely a plus when you have the weather to back it up, and it seems that regardless of gender that is the number one feature that creates the crush.

Men had a close second with Garages and that is easy to agree with. Since the muscle cars came out in the mid 50′s, garages and manliness have become synonymous. Now of course not every man wants that big garage to work on their cars. This could also be used for storage, children’s out door equipment or any other item that they wish to have outside of the home. Normally, the bigger the garage the better.

Ironically enough though, both men and women had open floor plans on their particular crush list, but women favored it much higher than men. An open floor plan just gives the illusion and excitement that the home is a big playground for decoration, house parties and growing old. Just like the garage, the bigger the open floor plan, the better. Having a larger area to utilize for home decor is never a terrible idea and we can easily see how Women and Men would want that extra space in the near future for children, housing changes and anything else that may come their way. This is a hard crush to get over once you have it in your Sarasota home as the extra space is a tremendous advantage to any property.

At the end of the day though, the crush that you have on your own particular Sarasota Real Estate will come down to what you truly want in your next home. Whether it is an open floor plan, a bigger garage or multiple bedrooms upstairs, once the crush hits you it is hard to get rid of. We all had grade school crushes that we truly wanted and in the end, these housing crushes will be just the same except way more satisfying!