Thursday, October 27, 2011

Investment Market Posting Record Gains

Apartment rents and occupancies are nearing record highs as demand increases, particularly among former home owners who have faced foreclosure and are now forced to rent than buy. Nationwide, 1.5 million new rental households are expected in 2011 -- which would be a record number, according to Green Street Advisors.

By the end of the third quarter, 5.6 percent of apartments stood vacant, the lowest level since 2006, according to Reis Inc. Effective rents increased to $1,004 a month in the third quarter, which is a 2.3 percent gain from last year, Reis reports.

Rising rents are appearing even in the hardest hit cities, such as Orlando, Fla.; Detroit and Phoenix, that have faced some of the highest unemployment rates and biggest losses in housing values, The Wall Street Journal reports. Only Las Vegas rents declined compared to a year earlier, out of the 82 major markets that Reis analyzed.

A lack of supply in rental units to meet the increased demand is causing rents to rise. Reis reported that about 8,200 new apartments were added to the market in the third quarter, but that’s the second lowest number since the company began tracking that data in 1999.

Meanwhile, investors are seeing soaring profits from apartment buildings they may have purchased just a few years ago. In fact, due to rising rents and demand, some real estate companies are expected to post their highest gains since 2006 in property net income for this year and next, The Wall Street Journal reports.

Source: “Apartment Values Rise, as Do Rents,” The Wall Street Journal Online (Oct. 26, 2011)

Wednesday, October 26, 2011

Renters Spending 5% More Than Home Owners

Rising rents are forcing renters to outspend home owners on housing costs, according to a new study.

Since 2005, home owners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. On the other hand, in that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.

Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same -- or less -- than the median rental payment.

Yet, with the bleak job market, home ownership rates continue to fall in many parts of the country, particularly among younger generations. CoreLogic found in its report that the home ownership rate for the 25-to-34 age group dropped from 51.6 percent in 1980 to 42 percent in 2010. For the 35-to-44 age group, home ownership rates fell from 71.2 percent to 62.3 percent over that period.

Source: “Renters Outspend Owners on Housing,” RISMedia (Oct. 25, 2011) and Capital Economics

Tuesday, October 25, 2011

Wedding Registries for Home Downpayments?

Forget the toasters and champagne flutes: More engaged couples are doing a different type of wedding registry that allows them to collect cash for a down payment on a home, according to a recent article in The Washington Times.

Dana Ostomel, founder of Deposit a Gift in New York City, says that about 15 percent of their registries are to raise down-payment funds for a home and another 15 percent are for home-improvement funds to pay for upgrades like a new roof or furniture.

"Given that 75 percent of today's engaged couples already live together and are older, very often they are already established with the household basics that you find on a traditional registry," Ostomel said. "What they want is the gift of big-ticket items and longer term goals, like the gift of home ownership.”

The FHA permits gifts from a wedding to be used as a down payment, but lenders are required to document that the funds are gifts. About 27 percent of first-time home buyers use gift money from relatives and friends for a down payment, according to a 2010 National Association of REALTORS® Profile of Home Buyers and Sellers survey.

Source: “Registries Raise Cash Gifts, Avoid Etiquette No-No,” The Washington Times (Oct. 20, 2011)

How to secure your home during a foreclosure

By Andrew Johnson, ksl.com contributor

SALT LAKE CITY — A vacant home is a tempting target for all sorts of criminal activities, like vandalism and even illegal drug operations. Take a look at a few statistics regarding bankruptcies and foreclosures: According to the United States Bankruptcy Court, bankruptcy filings in Utah have increased 7 percent so far this year, even though the national rate has fallen 10 percent.

Although Utah’s rate of foreclosure filings during the third quarter of 2011 dropped from the second quarter, the state is still ranked among the nation’s Top 10 for rate of default filings in that time period.

As people foreclose on their homes, neighborhoods deal with the increased potential for crime. When a home becomes vacant, either through a foreclosure, repossession or even when the owners leave for an extended vacation, it’s important to make sure the property remains secure.

Malicious or unintentional property damage can end up costing banks and homeowners money, and property insurance may not cover it all. Guarding against accidents and break-ins is crucial, since the homeowner is still liable for the property during the process of foreclosure. Experts recommend thoroughly securing the property and the home before moving out, and paying close attention to the details.

Before you secure your home, realize there are certain things you shouldn’t overlook. It’s also a good idea to make sure the property doesn’t look vacant. If potential vandals, thieves and trespassers believe there is still someone living at the property, they’re less likely to target the home.

Here are some tips to consider:

  • Lock up — All it takes is one window left unlocked, and the insurance company could deny any potential claim. Check all the entrances to your home — and then check them again.
  • Winterize — Before a home is left vacant for any length of time, shut the water off at the main valve. You should also drain the water from the plumbing systems, and push the leftover water out with compressed air. Even a small leak can lead to a big problem, potentially costing tens of thousands of dollars in damage.
  • Maintain the property — Property preservation companies offer services to give a vacant property a “lived in” look. They’ll maintain the yard, pick up mail and newspapers, shovel snow from the driveway, and remove debris. Companies like these offer services to homeowners and banks, so a vacant property can be maintained indefinitely.
  • Ask for help — Former neighbors and friends can lend a hand with maintaining the property when it becomes vacant. Ask them to occasionally check up on the home or lot, and check for leaks, turn the blinds and monitor for trespassers.
  • Unplug — An appliance that is set to “off” still draws a little power, so make sure everything inside the home and garage is unplugged. Before the electricity to the home gets shut off, pulling the plug can ensure a potential fire doesn’t start.
  • Test and retest — Smoke and carbon monoxide detectors, as well as security alarms, should all be functioning properly. Make sure there are fresh batteries in the units, and test them before vacating the property.

Thursday, October 13, 2011

Down economy's upside: City living becomes affordable


By Sarah Dallof

SALT LAKE CITY — Downtown Salt Lake lofts and condos that used to be in high demand when they introduced city living with big city price tags. But falling interest rates and low list prices are offering people the chance to get into dream properties.
Take a look inside one of the Broadway Park Lofts: two bedrooms, one and a half baths baths in nearly 700 square feet. Originally listed for over $261,000, it's now on the auction block starting at $100,000.
A penthouse that was once worth nearly $350,000 now has an opening bid of $140,000.
"Where the pricing ends up, you have to wait until auction day (to find out)," said Susie Keller, project manager of the Broadway Park Lofts.
So, is it a good deal or a ‘too good to be true' deal? Downtown sales veteran Babs De Lay, with Urban Utah Homes and Estates, cautions there are risks with developments like this, specifically when it comes to an unknown home owners association.
"There are a lot of things that haven't happened there because it's not finished, and what will you be absorbing there in a building that's not completely sold out?" De Lay said.
But it could be a killer deal for the right investor. And the dream of downtown ownership isn't just found on the auction block. If you can qualify for a loan, historically low interest rates are waiting.
"Business is crazy right now because of the interest rates. If it stays this way, I don't think I'll have days off for a month," Keller said.
De Lay says people with good credit, an income history and not a lot of debt are the folks qualifying for loans these days.http://www.modernhomebuyers.com/

Saturday, October 8, 2011

5 Family Movie Night Ideas...

incredibles.jpg




SALT LAKE CITY — If the man of the house quotes Clark W. Griswold on road trips and your toddler runs around shouting, “To infinity, and beyond!” it’s likely your family has their own list of top 5 movies.

A great family movie has endearing characters, humor and a life lesson, all rolled into an original and memorable story. When an entire family can sit down and enjoy the same movie together, it’s a cinematic success.

But you need more than a great family film to have an enjoyable movie night. Choosing a theme and adding a little extra entertainment can go a long way. Here is a list of five more current family films, and ideas for snacks and activities to make movie night more enticing.

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"Enchanted"

1. Fairytale Night

"Enchanted" is a fairytale gone awry. In the movie the evil queen, Narissa, pushes the beautiful princess, Gisele, out of the animated world of Andalasia. The princess finds herself in modern-day New York City, communing with street rats and dirty pigeons instead of animated forest animals.

The fairytale feel and catchy soundtrack will appeal to younger family members, while mom and dad will appreciate the playful jabs at traditional happily ever after stories.

Since the evil queen’s henchman (the fabulous Timothy Spall) spends the entire film trying to trick Gisele into biting the poisoned apple, it’s only fitting to serve candied apples with this movie night. An easy recipe for Pip's candied apples can be found at www.mommybistro.com.

For an older fairytale classic, “The Princess Bride” is another family favorite worth watching.

2. Superhero Cinema

“The Incredibles,” one of Disney-Pixar’s most original animated movies, is the perfect choice for a superhero movie night.

After the Superhero Relocation Program forces the supers into hiding, Mr. Incredible finds himself restless in suburbia while working as a disgruntled insurance salesman. But he’s called back into action and duped by the evil villain Syndrome. His family of supers comes to the rescue, and they pull together to show how incredible they really are.

“The Incredibles” is devoid of princesses or talking animals. It’s rare when an animated film has characters with real depth, as well as hilarious dialogue that adults and children can both enjoy. The computer graphics are great, but they’re nothing compared to the smart humor and story that makes this a stand out family movie.

Parents may find themselves identifying with this line from Mr. Incredible: “No matter how many times you save the world, it always manages to get back in jeopardy again. Sometimes I just want it to stay saved! You know, for a little bit? I feel like the maid; I just cleaned up this mess! Can we keep it clean for... for 10 minutes?!”

Even though the seamstress to the supers, Edna, declared, “No capes!” after many death-by-cape mishaps, it’s probably safe for your family members to sport one on the couch. Recycling old t-shirts into a superhero cape is fun and easy. You can find simple instructions at the Kelleigh Ratzlaff Designs website. Decorate them during the movie while munching on a superhero sandwich from allrecipes.com.

3. Bon Appetit Theater

While most family films put a lot of emphasis on big laughs and musical numbers, "Ratatouille" has subtle charm and wit.

Remy, a rodent with a passion for the culinary arts, prefers French cuisine over garbage. Determined to be more than the average sewer rat, he leaves his family and follows his nose to Paris where he hides out in Gusteau's Parisian restaurant. He becomes an unlikely team with Linguini, an untalented heir to Gusteau's legacy, by manipulating his every move in the kitchen with a pull of his hair.

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"Ratatouille"

The moral of “Ratatouille” is voiced by Peter O’ Toole, the feared food critic: “Not everyone can be a great artist, but a great artist can come from anywhere.”

Remy's ratatouille fondue is délicieux. Follow an easy recipe at Mommy Bistro's website.

Having paper toques (chef hats) for the family to color and decorate is an easy activity for young chefs.

Food-inspired films like “Charlie and the Chocolate Factory” and “Cloudy with a chance of Meatballs” also hold a lot of potential for a fun movie night.

4. Sports Night

What better way to kick off fall than by having a football-themed movie night?

Mark Wahlberg stars in “Invincible,” the true story of Vince Papale, who went from being a fan of the Philadelphia Eagles to an actual team member. In the spirit of “Rudy,” “Invincible” is all about an underdog who achieves his dream through pure grit and determination; the perfect recipe for a family sports movie.

“Invincible” is rated PG and has a moving story, but it’s probably best suited for audiences 12 and up.

Providing game day snacks can make this movie night feel like a Super Bowl party. Follow the recipe fortwice “blitzed” potatoes or kick-off kabobs with easy instructions from pittsburgh.about.com. Wearing your faorite team's football jersey only adds to the fun.

“A League of Their Own” or “Rudy” could be great picks for future sports-themed movie nights.

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"Invincible"

5. Fright Night

This theme can be tricky, so take into consideration the age of your family members and plan accordingly.

It might seem like a safe choice, but “Harry Potter and the Prisoner of Azkaban” would make for a great movie night. There are so many recipes and activities on the Web that would add to the fun of the film that it shouldn’t be passed up.

The third film in the Harry Potter series, “Harry Potter and the Prisoner of Azkaban” is a bit darker in comparison to the first two films. The plot revolves around Sirius Black, an Azkaban escapee who was blamed for the death of Harry’s parents and who is now hunting down Harry. New characters and creatures are introduced, like Professor Lupin and Buckbeak. The dreaded Dementors add to the suspense and fright factor making, it just scary enough but not too scary for a family movie night.

Nicole Pollard currently resides in Canyon Country, Calif.

Friday, October 7, 2011

30-Year Mortgage Rates Drop Below 4%

For the first time ever, 30-year fixed-rate mortgages fell below 4 percent, Freddie Mac reported in its weekly mortgage market survey.

In the last month mortgage rates have continued to set new weekly record lows, but the 30-year mortgages’ latest drop below 4 percent may be an important threshold for potential buyers. The 30-year mortgage is the most popular financing option of buyers.

Mortgage rates are expected to stay well-below 5 percent through 2013, Fannie Mae economists are projecting. Home buyers taking out loans for purchase is expected to more than double in the next two years too, Inman News reports.

Rates have continued to free-fall as concerns over a global recession grows, Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Oct. 6.

  • 30-year fixed-rate mortgages: averaged 3.94 percent this week, down from last week’s previous record low of 4.01 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.27 percent.
  • 15-year fixed-rate mortgages: averaged 3.26 percent, another all-time low. This is the sixth-consecutive week the 15-year mortgage has posted new average record lows. Last week, 15-year rates averaged 3.28 percent. Last year at this time, 15-year rates averaged 3.72 percent.
  • 5-year adjustable-rate mortgages: averaged 2.96 percent this week, dropping from last week’s 3.02 percent. A year ago, the 5-year ARM averaged 3.47 percent.
  • 1-year ARMs: averaged 2.95 percent, the only mortgage rate to move up last week. Last week, the 1-year ARM averaged 2.83 percent. A year ago, the 1-year ARM averaged 3.40 percent.


By Melissa Dittmann Tracey, REALTOR® Magazine Daily News