Each summer, many people grapple with
the same question: Does it make sense to buy a home in the place
they vacation?
Be it the beach, the lake or the
mountains, vacationers may ask whether it's time to put down roots
in their favorite getaway spot or if it's more prudent to keep
paying for hotels and rentals year in and year out.
The answer lies in how they view a
host of financial and lifestyle considerations, including how much
time they want to spend in their chosen paradise and how important
rental income is to them, real estate experts said.
"We're finding that most people are
definitely buying for recreational interest first and foremost,"
said David C. Hehman, chief executive of EscapeHomes.com. "But
it's very common that they will rent it out when they're not using
it to defray the cost of ownership."
Last year, Americans bought and sold
an estimated 445,000 second homes, up from 359,000 in 2001,
according to the National Association of Realtors. The United
States is home to about 6.63 million vacation dwellings, with the
stock projected to grow by an average 125,000 new units per year
in the next decade.
To be sure, a vacation home is an
emotional purchase that should be approached cautiously, Hehman
said.
"It's not for you if you can't get
the enjoyment out of it or if it's going to be a financial
stretch," he said. "If it's got to be too far away from you,
difficult to get to, if you have kids that have soccer games every
weekend and you were planning to make it there, you have to match
your use pattern up with reality."
Of course, the decision to own is
easier for those who can tap the equity in their primary residence
or who fully expect to continue going to the same destination
every year, said John Zubretsky, regional president of Century 21
Access America in Weathersfield, Conn.
"It's kind of a leap financially for
a lot of people, but when you figure out what you're paying in
rent for a place, a lot of times your rent is almost your whole
down payment," Zubretsky said.
"Three years' worth of rental on a
place is your down payment. On a vacation home you really only
need 10 percent down."
Along coastal Connecticut, the
average price of a second home is about $350,000, which buys a
three-bedroom, two-bath, no-heat house within walking distance of
a beach, he said. The area's prices jumped 15 percent last year,
and such a place likely would have commanded $200,000 five years
ago.
"From the Fourth of July to Labor Day
when kids are out of school, they're looking at it as nothing
better," he said. "These beaches are pretty much the camp for the
family, so to speak. It's relaxed, it's friendly and I think it
beats renting."
Those set on a location are wise to
buy so they can treat their vacation property like a piggy bank or
alternative investment, said Tom Kelly, co-author of "How a Second
Home Can Be Your Best Investment."
"We only get so much vacation time,"
Kelly said. "Why not buy something you can use, that you can rent,
that's probably going to appreciate over time?"
Kelly advised prospective buyers to
figure out how much they would need for a down payment, how much
they could rent the property for during the premium weeks of the
year and whether the cash flow would be positive over time. "If
you're going to be there and go back over and over for decades,
it's a no-brainer. If not, it's going to be an investment
property."
Even so, people often overestimate
the amount of time they'll have to use it for themselves, he said.
"Most of the time, the average individual isn't going to get to
the getaway as much as they think."
For many families, determining how
much to finance can be a sticking point, said Pat Campbell-White,
a broker for Re/Max Realty Group in Rehoboth Beach, Del.
"Once they make the decision they
want to move forward, their first concern is always price," she
said.
Known as a summer playground of
Washington, Rehoboth Beach has properties now selling for an
average $300,000 to $500,000, and they've been appreciating at a
rapid clip, Campbell-White said.
About 56 percent of second-home
buyers expect to pay less for it than their primary residences,
Hehman said.
Tax breaks can make owning a vacation
home more affordable, depending how often it's used vs. rented
out, said Laura Washington, associate editor of Consumer Reports
Money Adviser, a newsletter.
That's why owners need to keep good
records of the days they occupy a second home and the days they
rent it out, she said.
Personal use alone or renting it
fewer than 15 days a year is the simplest scenario because in
those cases you don't have to declare rental income on your taxes,
Washington said.
One issue that's emerging for
potential vacation home buyers is some areas' local regulations
regarding rentals, Hehman said.
"Some marketplaces are actually
considering restricting short-term rentals because the neighbors
are complaining about garbage and noise," he said, noting that
South Carolina's Kiawah Island is grappling with that now.
Home buyers need to choose real
estate agents who are up to date on such issues since they can
have a big impact on sales, said Guy Trusty, president of Lodging
& Hospitality Realty in Miami, which consults with hotel
developers.
"If people who buy it want to stay
put and rent it out the rest of time, the expertise of the broker
has to include knowledge of local government and local ordinances
that might prevent those folks from achieving their goal," Trusty
said.
Here is some advice to consider
before jumping into second-home ownership, according to experts:
• Rent in the locale where you are
considering buying for several years before committing to a
purchase.
• Estimate how much time you and your
extended family will use your vacation property. Be realistic
about accounting for life changes, job demands and children's
needs.
• Research your potential for rental
income. What are the going rates? "For the most part, it's very
difficult to make a vacation property a cash-flow type of
investment," Hehman said. "Does the initial outlay and monthly
outlay work for you?"
• Decide how you will manage the
property and whether a house is the right type of vacation-home
purchase. "When you come down, are you going to be content
cleaning out the gutters, doing the yard work -- how much do you
want to do that?" Campbell-White said. "Alternatively, maybe you
need a condo."
• Imagine your reaction when a tenant
calls with a problem. "If the pipes break and you're in San
Francisco and you have a house in Tahoe, there's the hassle factor
of trying to get up there or finding a great plumber," Hehman
said. "Are you allocating in your mental budget all these
additional expenses for upkeep?"
• Talk with the real
estate agent about hidden costs and ask about any ordinances that
may prevent you from renting your property to others.
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U.S. Census 2,000 stats on Sussex
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Delaware.gov Search & Resource Engines
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Delaware Data Base U. of D.
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WHERE'S JODY? Look for Jody at one
of the local
WiFi Hot Spots
working on his laptop!
See Also www.JodyHudson.com and
About
Jody. Or he may be out target shooting with his
new Rohrbaugh!
and meeting with Kate on the range.
WHERE'S
KATE? She is at the Gym
working out!
Kate at Gym!
About
Kate.
We will also
assist you, your builder or your architect, in finding lots,
land, acreage, waterfront properties or any land, woodland
or forest land that you might want. There are even
lots for sale in Rehoboth Beach, Dewey Beach, Lewes,
Fenwick, Bethany, and areas near the beach. Jody has
specialized in Sussex County Delaware, Land for sale for
over 30 years. In fact, many people remember Jody for
his years of radio ads regarding "Land for Sale - Swamp Land
Too, but it costs MORE!" And, that is often true.
In this area the swampland, marsh, wetlands, and wet areas
are "Where The Critters Play" as his radio ads used to say.
This wetland area is teeming with life and people often pay
more for that view, a marsh-front view. The Glade, a
local and luxurious community has it's most expensive homes
and lots on the edge of the wetlands with a view of the
marsh between Lewes and Rehoboth, across Gordon's Pond.
Sussex County Delaware is one of
the largest counties east of the Mississippi River. It
takes an hour to drive from the north border to south border
and an hour to drive from the east border to the west
border. Kate and Jody ask that you spend some time first on the
phone and by e-mail -- to narrow down the locations that
will work for you -- otherwise it will take tens of hours
and hundreds of miles to drive around this huge county "just
looking".
Price
is THE major factor that
determines purchasing and location determines price. In
Sussex County Delaware location-location-location, is almost
always defined -- as proximity to the ocean beach, distance
to the Delaware Bay beach, distance to the water of
any inland bays or ponds. The value of the immediate
surroundings is a distant fourth place in the location
equation.
To do a sophisticated price
search that includes properties; not pictured to the left --
you can search by price, bedrooms, etc. on the
MLS
site.
Realtors find that most folks
moving to Delaware want to be at the beach or at most,
within 5 to 20 miles of Rehoboth Beach, Lewes Beach, or
Fenwick, Dewey or Bethany. That includes, in order of
price, as a rule, Rehoboth and Rehoboth Beach, Dewey Beach,
Lewes Town proper, Lewes Beach, Bethany Beach areas and the
inland bay reaches. Then there are; Fenwick Island,
Broadkill Beach, Milton, Cool Springs, Harbeson, Oak
Orchard, Cool Spring, Harbeson and Georgetown. There are
many more areas, villages and communities and they can help
you fill your needs there as well.
For all of your Rural Rehoboth,
Sussex County and "Slower, Lower, Delaware" Real Estate
needs, you can count on Kate Baird; Realtor & Jody Hudson
Realtor and Kate Baird's Marketing Partner for a full
spectrum of Realty services. We are sometimes asked
about lots for sale in Rehoboth Beach, there are some,
usually well over a million dollars for a small lot.
You may save money and get a better location by purchasing
an existing home in the area you like and then removing that
home. Then you can build the home you like on that
lot. It is possible to build a taller home than it was
years ago and you can put in an elevator which saves space,
money and is more saleable in today's market.
Jody has over 30 years
experience in unique properties.
Jody, in addition to marketing Kate's services has been a
Rural Specialist, specializing in; Farms, Acreage, Forest,
Fields, Timber Land, Commercial, & Business Properties. He
specializes in country farm land properties, waterfront,
marinas, commercial, raw land,
acreage, rural homes, older homes, and is sometimes known as
the area's Rural Specialist!
Not everyone wants a wants
waterfront, oceanfront, or immediate resort area lands.
Delaware resort property sales areas now include nearly all
of Sussex County. If you are seeking a Realtor who
specializes in Lewes, Broadkill (Jody had the first Real
Estate office and perhaps the only Realty office ever, in
Broadkill beach, and sold many of the lots there when they
were first made available.). If you want a Rehoboth,
Dewey, Bethany, Fenwick, Lewes area Realtor, you have come
to the right place. Kate and Jody want to be your
first choice for real estate services in the beach areas.
Kate and Jody have arranged to
have the entire Sussex County Multiple Listing Service (and
that includes the Delaware beaches)
available for you, just click on the "Properties" tab above
to see their personal listings. OR: You can search the same
MLS system that Sussex County Realtors use by going to the
bottom of this page to search the entire MLS! See the
property listings for the entire Delaware Beach area.
All properties served by the
Kate-Jody team, are in locations in Sussex County just a
couple hours east of Washington DC. near Rehoboth Beach "The
"Nation's Summer Capitol". Rehoboth is known as the
Nation's Summer Capitol because it is the primary summer
resort for Washingtonians and has been for decades.
=============================================
LEGAL ADVICE: The many
decisions regarding buying and selling real estate are
governed by law. It is strongly suggested that you spend
some time on the Plain English, Legal Information Web Site
as part of your preparation -- to buy or sell.
NOLO "Law for All"
==============================================
Jody is also a member of B.N.I.
The Barter Network International. If you are a
B.N.I member you can
Barter the entire real estate commission with Jody.
Kate does it all residentially
in the resort area; Resort, Residential, Beach, Waterfront,
Condos, Townhomes, Town Houses, Waterview & Rural
Residential properties. Together Kate and Jody can serve
your every Real Estate need!
Kate & Jody hope to be YOUR
Number ONE Realtor team; your real estate agents at the
beach!
Spelling Notes: There
are some frequent spelling and pronunciation errors
regarding Rehoboth and Lewes: there are numerous wrong
spellings for Rehoboth Beach; including Rehobeth Beach,
Rohoboth Beach, Rohobeth Beach, and perhaps others. And
there are numerous incorrect spellings for Lewes as well;
such as Lews, Lous, Louis, Lose, Lewis, and Lewus. The
correct spelling is Lewes and it is pronounced Loo-Us not
Lews. Enjoy!
VISIT OUR DELAWARE BEACH DISCUSSION BOARD and open and
free discussion forum collection of topics and interests,
local information -- where locals as well as Kate and Jody
will gladly help you with any questions about our area; real
estate related or not. We have hundreds of people a month
who stop by just to get a feel for our area without ever
posting a question or response, but you are welcome to join
us and register at no charge. Please join our forums and
ask or say anything you want. If you are seeking to learn
something or get some answers to FAQs that it Frequently
Asked Questions, about our area -- this is the place to go:
www.DelawareBeachBoard.com
For the most up to date, informative, accurate, and broad
based information about Sussex County Delaware; especially
regarding anything that affects real estate; check out the
very fully featured site by Rich Collins and hundreds of
community sensitive, informed and influential members of the
Positive Growth Alliance:
www.PositiveGrowthAlliance.Org
Learn about some of our special areas, communities, towns,
villages, neighborhoods, and developments!
Milton
Delaware the next Hot-Spot in Sussex County Real Estate!
Real Estate NEWS ARCHIVES for Sussex County Delaware,
Rehoboth Beach and Delaware Beach areas.
Check out
The Latest!
News, Views,
Information, Press Releases, Thoughts and E-Mail Newsletter
Contents!
FSBO
(for sale by owner) marketing contact
E-Mail Jody for FSBO Services
cell 302-841-8788.
Read About > For Sale By Owner
Services available
Barter Network
options
B.N.I.
Barter Network International
Our Real Estate
Service Area:
The Delaware
Beach Areas on the ocean, Delaware Bay, Rehoboth Bay, and
the inland bay areas. The towns we serve best are
Rehoboth Beach, Dewey Beach, Bethany Beach, Lewes, and Lewes
Beach, Broadkill and Broadkiln Beach, Primehook area and
lands adjacent to the Primehook National Wildlife Refuge,
Milton, Nassau, Five Points and the Villages of Five Points
as well as the vicinity of 5-Points intersection of Rt. 1,
Route 9, Route 404, Route 16, 24, 18, and U.S. Hiway One.
Near the beaches of Southern Delaware, other areas we serve
well are Harbeson, Coolsprings, Cool Spring Crossroads,
Georgetown, and the towns, villages and communities in
southern Delaware which are known as Lower, Slower Delaware.
Some of the other area towns and areas we serve are
Millsboro and Hunter's Pointe, Indian River Bay and Oak
Orchard, Riverdale, Indian River Inlet, the Indian River
itself, Black Water Point, and communities around Red Mill
Pond, the Lewes and Rehoboth Canal, Broadkill River, Milton
Pond which is also known as Wagamons Pond, and the Historic
town of Milton. Collectively this is all known as the
Delaware Beach area or the Henlopen Quadrant an area
surrounding Cape Henlopen and the beaches at Lewes and
Rehoboth and inland areas that are primarily within
twenty miles of Lewes Beach, Dewey Beach, Rehoboth Beach and
Bethany Beach Delaware. and dozens of small beach area
towns, like Milton, Millsboro, Oak Orchard, Angola and Long
Neck.
. I hope that helps you find the areas that we
are best at serving.
Delaware is comprised of three large counties and each
county has it's own Real Estate Multiple Listing Service and
it's own real estate laws, customs, and rules. Kate
and Jody handle eastern Sussex County and they have
affiliated with a Number One Realtor in Kent County - a Team
of Two - Jim Olson and Dave Villabona. Tell them you
found them here and go to
www.JimAndDave.com
specialists in Dover and Smyrna DE area real estate!
These two will well serve you in the Dover, Delaware Capital
area.
For real estate information
you won't see anywhere else...
Real
Estate Essays below are by Jody Hudson copyright 1970 thru
2005
Click
Here to see this Essays Index Page in Larger Print
Articles and
Essays; Information for
Buyers
of Real Estate
Low Priced Properties
Are Available If You Know How To Buy Them
FAQ Regarding "Buying" a
Home or House; Real Estate On Leased Land
Real Estate:
Reasons and Priorities for Purchasing Property.
A Powerful Suggested
Technique for YOUR Home & Property Search
Culture Shock: When
Moving From an Urban to a Rural Area
Buying Rural Property
How Much Home or Property Can
You Afford?
Horses in my
Back Yard; Everything I know about Buying Land for Horses
General Information about The Delaware Beach Area
Sussex County Delaware
Beach Area Towns and Villages are Unique and Historic
Sussex County Delaware Has Had A 38% Population Explosion!
Low Priced Properties
Are Available If You Know How To Buy Them
FAQ Regarding "Buying" a
Home or House; Real Estate On Leased Land
Real Estate:
Reasons and Priorities for Purchasing Property.
A Powerful Suggested
Technique for YOUR Home & Property Search
Culture Shock: When
Moving From an Urban to a Rural Area
Buying Rural Property
How Much Home or Property Can
You Afford?
Horses in my Back
Yard; Everything I know about Buying Land for Horses
Articles and Essays; Information for
Sellers
of Real Estate
Archived
Articles, Essays, etc.:
Where Housing is Headed
in Wake of Attacks
The Nation's Housing
Existing-Home Prices
Accelerate Ascent
Washington Post
Article: Delaware Beach Properties; 166% increase in 4
years.
News Journal Article:
Building boom by the Bay
Safe, Scenic & Secure
Sussex County Delaware
Oak Orchard Eyes
Expansion; Sussex Post Article, March 21, 2001
Sussex County
Delaware Has Had A 38% Population Explosion!
Ryan's Berry Farm - A
Property SOLD By Kate Baird; Realtor & Jody Hudson; Kate
Baird's Marketing Partner
Quality of Life in
Sussex County Delaware
Should I Still Buy Real
Estate After All That Has Happened?
"A Message to Garcia"
New Agents Stress... from Washington Post.
Delaware's Diamond State Web
Site Awards
Here
is what our Dover Affiliates: Jim and Dave have to say!
Welcome! Here You Can Find Great
Information on Kent County Real Estate
Looking for homes? Search everything the
web has to offer, right here! Don't miss our Feature Homes.
Need local real estate information? We've
summarized much of what is important about the Dover and
Smyrna real estate market in this site.
Need expert advice? No web site, large or
small, can take the place of a top Realtor. Not even ours!
This site is filled with ways that you can contact us for
one-on-one expert help and advice. That's our job.
Contact us with confidence! We guarantee
your privacy will be respected. And we offer the services on
this site for free and without obligation. Why? We want to
be YOUR Realtors. As your trusted, professional real estate
partners, we will help you find the best home in your area
within your price range. And together we will sell your
home, for as much as the market will bear, and as quickly as
possible.
Buying and selling a home is one of the
biggest events in your life. As top Kent County Realtors, we
have the experience and track record you are looking for.
Please let us help.
- Jim Olson and Dave Villabona www.JimAndDave.com
========================================
July; Existing-Home Sales Smash Record
Driven by strong market fundamentals, existing
single-family home sales rose to a record monthly pace
in July and prices increased at a double digit rate from
a year ago, according to the National Association of
Realtors®.
=====
Consumer spending
rebounds Demand rises for durable goods...
By MEG RICHARDS
Associated Press
08/27/2003
NEW YORK -- Consumer
confidence rebounded in August from a dip the previous
month as thousands of households surveyed expressed a
growing belief that better times were ahead, a private
research group said Tuesday. Meanwhile, the
government reported a surge in July for big-ticket
items, and new-home sales...
======
Buyers of the highest priced homes are not just heirs
anymore.
We now
see that younger, self made, and often self employed
people represent more than half of the buyers for top
priced homes. These buyers of the most expensive homes
are usually senior executives of larger corporations –
BUT they are often project-based executives rather than
people who have been with the same company for decades.
Another large class of luxury home or executive home
buyers is the senior government worker who is now
retired, has lots of equity in his current home and is
now moving into a similar or even the same job – in
retirement – but as a consultant. As a consultant that
person is finally able to work-from-home, telework,
telecommute, and use the laptop, cell phone and
Blackberry; just as we were told they would be doing 15
years ago. Almost none of the senior execs, senior
military, senior Government Service or senior political
bureaucrats have been allowed off-the-ranch even at
their high station in the workplace. Lesser employees,
those making less than $250,000 a year, are certainly
not allowed to work from home, instead of coming to the
office. Now, many of these folks are “retiring” to a
full time and actively productive professional life and
doing it, where they want to live, instead of close to
work.
Since many if not most of
these folks, from the Baltimore-Washington-Northern
Virginia area have delighted in our area as a first
choice in recreation all these years; many of them are
opting to come here as telecommuting teleworkers – and
getting an increase in annual income to boot. They
often bring with them enough equity in the home they
sell to make a down payment of well over 20%. They
often have or soon will have an additional boost from
inheriting some wealth from parents. They are often
cashing in corporate pension accounts if those accounts
are under corporate control.
For these reasons, we can
expect to see more and more people in the age 35-50 plus
group; coming here to a highly remunerative,
working-retirement. Bring them on! These are some of
the most wonderful people we can hope to attract to our
community. They have income, finally some time control
of their daily lives, and are quite often seeking to be
part of our volunteers and support for our cultural and
community endeavors. We welcome them with open arms, as
well as the income and assets they bring to us;
financially and otherwise.
=======
Experts still bullish on housing:
A meeting of the minds on housing, media,
online listings.
Wednesday, July 23, 2003
By Susan Romero
Inman News Features (edited for brevity)
Inman moderated a (distinguished) panel (of the largest
lenders, realtors, experts, etc.) titled “How big can
this housing market get? How high can rates go?”
Panelists initially agreed that the fundamental
underpinnings of the housing market would remain strong
despite an expected rise in mortgage interest rates.
The consensus was that low interest rates, strong demand
for and limited supply of housing, and demographics
would continue to work together to fuel strong home
sales. The Baby Boom and Echo Boom generations,
households headed by women and minorities are driving
the strong housing market, these experts agreed.
The panelist said they’d anticipated the recent increase
in interest rates and they agreed that rates would
continue to rise as the economy improves. The media is
responsible for causing interest rate “hysteria.”
Rising rates are more likely to slow rising home values
than they are to cause them to fall. Media stories
about financially over-extended consumers and the
“slight” rise in the foreclosure rate aren’t worth
worrying about,. “The silent majority (of consumers)
handle their debt very well.
======
Reverse mortgage activity soars: Senior homeowners.
Wednesday, July 23, 2003 Inman
News (edited for brevity)
The Federal Housing Administration
insured an all-time high 1,800 reverse mortgages in
June, as a record wave of senior homeowners attempted to
raise additional income, the
National Reverse Mortgage Lenders Association
reported today.
Volume has particularly jumped from a
year ago. The upswing in production has been driven by
record low interest rates that have slashed monthly
income to seniors from CDs and similar investments, plus
other factors. Seniors are using reverse mortgages to
supplement their everyday income.
With the stock market boom over and
interest rates down, many seniors are feeling
financially squeezed these days. Older homeowners are
getting reverse mortgages to access the built-up wealth
in their homes to generate additional income. By doing
so, they can continue to live independently – and
comfortably – right where they are.
A reverse mortgage is a loan that enables
homeowners 62 or older to borrow against the equity in
their home, without having to sell their home, give up
title, or take on a new monthly mortgage payment. Loan
proceeds can be used for any purpose, and taken out as a
line of credit, lump sum payment, fixed monthly payment,
or combination. A reverse mortgage isn't repaid until
the borrower moves out of the home permanently, and the
repayment amount can't exceed the value of the home.
After the loan is repaid, any remaining equity is
distributed to the borrower or borrower's heirs/estate.
A senior's home does not have to be owned
free and clear to qualify for a reverse mortgage.
======
Do Rising Rates Indicate
the End?
By ROBERT IRWIN
Wall Street Journal: Real
Estate (edited for brevity)
All
those people who have been worried about the so-called
real-estate bubble saw the recent turnaround in interest
rates as a deadly omen. They know that real estate is
interest-rate sensitive and they fear a turnaround in
interest rates will also mean a turnaround in the
market.
Their fears, however, may be largely unwarranted. On
one hand, it is true that every time interest rates
fall, more people can qualify for bigger mortgages,
making it easier for them to purchase homes and, thus,
boosting the market. And every time rates go up, fewer
people can qualify for the same mortgages, slowing the
market.
On
the other hand, it is important to maintain perspective.
At 5.5%, mortgage rates are still near 40-year lows. And
at this time last year, interest rates were above 6.5%
-- and real estate was booming.
What
we have seen recently is an extra boost to the market
driven by incredibly low rates in the 5% range. We
aren't likely to see these rates again in our lifetime,
unless the economy falters even more. On the other
hand, should the economy rally, we could see interest
rates go higher.
As
far as the rise in interest rates chasing away buyers, I
am afraid usually it is just the other way round. As
interest rates begin to rise, those who were sitting on
the sidelines jump in hoping to take advantage of the
still-low rates before they rise even further. Thus, at
least in the short term, rising rates often create more
home sales.
The
real peril from increasing mortgage interest rates is
for refinancings, which could come to a screeching halt.
My guess is that interest rates will have to get at
least two percentage points above the bottom (to about
7%) before the real-estate market will seriously
deteriorate in most areas of the country. There
actually is a housing shortage, which should prop up the
market and help insulate it against short-term price
drops.
--
Mr. Irwin has more than 25 years' experience as a
Los Angeles-area real-estate broker. He is the author of
more than two dozen books about real estate and is
recognized as one of the most knowledgeable writers in
the real-estate field. Mr. Irwin's most recent books
are "How to Get Started in Real Estate Investing" and
"How to Buy a Home When You Can't Afford It"
(McGraw-Hill, 2002).
======
Fewer consumers disillusioned by investing: Americans
still reluctant to put money in stock market
Wednesday, July 23, 2003
Inman News Features (edited for brevity)
While a large majority of Americans are still unwilling
to invest money in the stock market, trust in the
financial markets has increased moderately.
Fewer Americans describe the current investment climate
as "bad" compared to six months ago – about 56 percent
of Americans today, down from 62 percent in the previous
survey. Some 26 percent expect an improvement in the
investment climate over the next six months, up from
about 24 percent six months ago. While these changes are
modest, they represent growing consumer optimism.
Both stocks and bonds remain off many consumers'
shopping lists, with only 22 percent saying they plan to
invest in stocks over the next six months, up slightly
from 21 percent in January. About 14 percent plan to
invest in bonds, somewhat less than in the last survey.
NFO WorldGroup conducted the survey of 5,000 U.S.
households for The Conference Board in September 2002,
January 2003 and May 2003.
======
How to Keep Deadbeats Out
of Your Rental Unit
By
PATRICK BARTA
This is a must read:
Special to RealEstateJournal.com (edited for
brevity)
Not
all landlords run credit checks on their renters. But
it's still a good idea to do it. You never know what
you'll find when you pull a credit report. It's also
not hard to do. There are numerous companies that have
set up shop on the Internet that can provide the service
for a relatively small fee, in some cases less than $15
per applicant. Often, these companies can provide a
wealth of other services, including criminal-background
checks, as well as information about the applicant's
rental history and past evictions. All of this
information can help you make a more informed decision
when weighing a prospective tenant.
Some
of these companies include: SafeRent (www.saferent.com),
Credit Retriever (www.creditretriever.com),
Resident Data (www.residentdata.com),
RentGrow (www.rentgrow.com),
and National Tenant Network (www.ntnnet.com).
Of
course, you'll have to get a renter's explicit
permission to pull his or her credit report. And there
are other ways to do homework on your potential tenants.
For example, property owners should always ask tenants
for employment references as well as current and
previous landlords. Don't be lazy -- you should call all
of them. But no matter what you do, make sure you do
your homework. If you don't, you could wind up with a
deadbeat.
-- Mr.
Barta is a staff reporter for The Wall Street Journal.
His "House Talk" column appears every Friday exclusively
on RealEstateJournal.com.
======
Housing starts rise again as new jobless
claims fall
(National Recession Ended!)
By Jeannine Aversa
Source: L. A. Daily News
(Associated Press)
July 19, 2003
(edited for brevity)
Housing construction in June climbed to the highest
level since the beginning of the year, and fewer
American workers filed claims for unemployment benefits
-- more hopeful signs that the economy might be gaining
traction.
The
Commerce Department reported Thursday that the number of
housing projects on which builders broke ground rose 3.7
percent in June from May… the strongest showing since
January. The increase, coming on top of a sizable 6.8
percent advance in May, came despite wet weather in some
parts of the country.
"Low
mortgage rates -- which, although having ticked up
recently, remain at historically low levels -- are the
primary driver of the booming housing market," said
Matthew Ellis, an economist at Wachovia.
In
another report, the Labor Department officials said
that, for the workweek that ended July 12, new
applications for jobless benefits dropped … a three-week
low… the lowest level in three months.
The
reports came as a group of academic economists declared
the 2001 recession officially over. The National Bureau
of Economic Research, the recognized arbiter of when
recessions begin and end in the United States, said the
recession ended…
Greenspan and private economists hope that economic
growth, which has been pokey so far this year, will pick
up speed in the second half of the year.
Home
builders are bullish about sales prospects even as
mortgage rates creep up. The average rate on a 30-year
fixed-rate mortgage rose this week to 5.67 percent, the
highest level since the beginning of May, mortgage giant
Freddie Mac reported. Nevertheless, this week's rate is
down from the same week last year, when 30-year
mortgages averaged 6.49 percent.
By
region, housing construction in the Northeast rose to a
rate of 156,000 in June, a 9.9 percent jump from May's
level. Nationally… Housing permits, a good sign of
current demand, rose 0.8 percent in June from May to a
rate of 1.82 million units. Permits for single-family
homes increased 5.3 percent to a rate of 1.42 million, a
record monthly level.
"Statistic by statistic tends to be coming in somewhat
better than we expect," Greenspan said Wednesday.
"That's usually a sign that these things are changing."
(and for the better).
=======
Younger, higher-earning home buyers use 'Net
Inman News
Wednesday, July 16, 2003 (edited for brevity)
The typical Net using homebuyer is married, is 38 years
old, and has a household income of $70,700. That is
younger but more prosperous than the typical homebuyer
who has not used the Internet to search for a
home; that also is married, but is 47 years old and has
a household income of $56,300, according to the National
Association of Realtors. This information based on home
purchase transactions in the first three months of 2003.
Nearly 90 percent of Internet searchers used a real
estate professional compared to 79 percent of
non-Internet users. The study also measured other
homebuyer and seller characteristics:
The typical home buyer walked through 10
homes, searched eight weeks to buy a home and moved 10
miles from his or her previous residence while the
typical Internet-using seller placed a
home on the market for five weeks and had lived in that
home for six years. This dynamic in a low-interest rate
environment is providing strong demand for all segments
of the housing market and is contributing to record
sales.
Married couples accounted for 59 percent of the homes
sold, but 37 percent of first-time buyers and 28 percent
of repeat buyers were unmarried. Single women were the
second largest segment of homebuyers. Single males
comprised 11 percent of buyers, and unmarried couples
accounted for 8 percent.
Seventy-five percent of homebuyers purchased a home
through a real estate agent or broker, an increase from
the 69 percent figure reported in last year's survey.
Fourteen percent of homebuyers purchase a home from a
builder and 9 percent bought their home directly from
the homeowner or a relative. Fourteen percent of
sellers closed their home sale without the assistance of
a real estate broker. Whatley said 44 percent of buyers
who purchased their home directly from an owner during
the first quarter knew the owner before purchasing the
home. A significant portion of for-sale-by-owner
transactions are not on the open market.
======
Fed Still Wants Rates to Remain Low
By JONATHAN FUERBRINGER
Source: New York Times Business; July 16, 2003
(edited for brevity)
The
Fed's policy makers believe they could still reduce the
benchmark federal funds rate — now at a 45-year low of 1
percent — even further...
"The Fed will,
I believe, let the yield curve find its own
market-determined level, while indirectly influencing
that level by implicitly promising (and reiterating the
promise as needed) to hold the fed funds rate at 1
percent for a long, long time," Mr. McCulley wrote in
his monthly analysis, which was released this week. "
Moreover, he said, there is no reason to assume that
interest rates will go much higher until there is
clearer proof that inflation has accelerated, which he
does not expect in the near term.
Tuesday
15, July 2003
from
www.BankRate.com
Nationally, the highest rate on a 30-year fixed mortgage
was 7.00 percent. The lowest rate was 4.63 percent.
Six months ago, the average rate was 5.65 percent. The
Your Best Interest report is a daily service of
Bankrate.com, a financial news and information service
based in North Palm Beach, Fla. Bankrate surveys more
than 191 financial products from more than 4,800
institutions in all 50 states.
=======
Tame the Hidden Cost Of Remodeling Work
By SUE SHELLENBARGER Staff Reporter of The Wall Street
Journal
From
The Wall Street Journal Online
(edited for brevity)
Source Article
July 10, 2003 --
Remodeling your house is an extra burden that can thrust
the most painstakingly balanced work/family equation
into chaos.
Q: We are about to undertake an extensive
home-remodeling. We both work demanding jobs, but
are committed to working together to see this project
through in order to have the house of our dreams.
I'm concerned, however, that the stress of such a
massive project will put a strain on our marriage and
distract us both from our work. What advice can you
give on how working couples can keep the stress of a
major home renovation from straining family ties and
hampering our work?
A: You
are wise to start thinking about this now. A little
planning can help ensure that building your dream house
will not become a nightmare. Have you considered
renting a small apartment or house for the most intense
remodeling phase? Most construction projects take
longer than projected -- twice as long or more. The
hardest part is having workers in your home all day.
Even after the construction crew leaves, you will face
dust and messy rooms. It may be worth it to move for a
while.
To prevent the project from hampering your work, use
good time-management techniques. Pick out all choices
in advance, down to the model number, brand, and color.
You will make wiser choices when you are not rushed.
Perhaps most important, adopt a positive attitude.
Learning to manage a remodeling will equip you with new
life skills, afterwards you will experience ordinary
daily challenges as less daunting. Make a
commitment to each other that you will help cope with
the tension. Pare your lives down to the basics. Do
not try to entertain. Rather than driving yourself
crazy trying to cook every meal, get healthy take-out
dinners. Let any spare time be for the family. It
will be more important than ever to schedule quality
time together in a serene environment --
