Cheaper to Own Than Rent Regardless of Mortgage Rate

 

 

Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For homeownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

In the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. They include:

Miami: 43% cheaper to buy
Fort Lauderdale: 53% cheaper to buy
West Palm Beach: 56% cheaper to buy
Cape Coral-Fort Myers: 45% cheaper to buy
North Port-Bradenton-Sarasota: 51% cheaper to buy
Lakeland-Winter Haven: 55% cheaper to buy
Palm Bay-Melbourne-Titusville: 50% cheaper to buy
Orlando: 51% cheaper to buy
Tampa-St. Petersburg: 55% cheaper to buy
Jacksonville: 54% cheaper to buy

Individual own-versus-rent savings will vary depending on details, but Trulia posed an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

What Experts Should I talk To If My Home Is Going Into Foreclosure.

 

Your home is going into foreclosure. Receiving this daunting notice, may leave you scared, nervous, unsure of the possible outcome, or unsure of the best course of action. However, there are a number of professionals that could help you understand the process and avoid foreclosure. It's important that you avoid scammers, and talk to one or more of these professionals:

· Your REALTOR^® will help you review your options and help you reach the goal of the best course of action chosen. A REALTOR will have the resources to help you successfully negotiate a short sale and avoid foreclosure.

· A Foreclosure Counselor will help you evaluate your current financial situation and serve as an advocate with your bank, free of charge.

· A Tax Expert will advise you if you do a short sale or deed-in-lieu of foreclosure since forgiveness of debt may be considered taxable income.

· A Credit Counselor can help you develop a plan to avoid future financial difficulty as well as help you repair your credit score. 

· An Attorney can help you if your lender has filed a foreclosure lawsuit.

For more information on avoiding foreclosure, call 813-419-7009 and ask for my Free Consumer Report called “Options To Avoid Foreclosure.” I’ll be glad to send a copy right over to you.

Move-In Ready Alsace Homes, Land O’Lakes, FL

 

The Alsace Community located in Land O'Lakes Florida is down to a few more home sites. This small community of only 18 estate-style homes will make the perfect, respite for any homeowner. Move-in Ready, Spacious Homes with plenty of room for you and your family are just a few clicks away. Secure one of these new construction, move-in ready gems today and you could be eligible to receive $5,500 towards closings when you use RMC Mortgage (Ryland Mortgage Services) and a $500 gift card to iKea or Publix. Click Here to view these move-in ready home sites and call me at 813-419-7009 to schedule your viewing today.

Bonita
Home Site #0018
4 Bedrooms, 3 Baths, with Bonus Room, 2-Garage
3,024 Heated Square Feet
Estimated Move-In – Immediately
WAS: $352,446; NOW $324,946

Inverness
Home Site #0019
4 Bedrooms, 3.5 Baths, 1 Level, 3-Garage
2,480 Heated Square Feet
Estimated Move-In – Immediately
WAS: $333,869; NOW $299,990

Inverness
Home Site #0017
4 Bedrooms, 3.5 Baths, 1 Level, 3-Garage
2,480 Heated Square Feet
Estimated Move-In – Immediately
WAS: $333,869; NOW $306,369

March 10, 2013, Daylight Savings Spring Forward

Daylight saving begins, March 10, 2013. This is just a friendly reminder to turn your clock one hour forward at mid-night, March 10th. Enjoy the extra daylight to get all of your work done. Personally, I look forward to daylight savings because it allows me to show homes later in the evening. Quick note from your Tampa Realtor, Gloria Walters,www.gloriawalters.com.

ItaliAsia, Highly Recommended

 

Decadent, delicious and exquisite are the words that come to mind after my lovely dining experience at ItaliAsia. Having a special event to celebrate, I wanted to try some place new and this restaurant surpassed my expectations. Not sure what to try, I ordered the Chicken Milanese. This dish included panko crusted chicken breast, napa cabbage, fresh bean sprouts, bok choy, curried noodles, and fresh lime that were married together so perfectly. I enjoyed each bite slowly, savoring the rich flavors and deliciousness my mouth was craving. My company enjoyed a beautifully seasoned and well prepared NY Strip Streak. We also tried the Duet of Mini Sliders. Needless to say we had some leftover to take home. Overall, all dishes were savory and very delicious.  

I consider myself a foodie. I love to dine and enjoy local and franchised restaurants across Tampa Bay. I’ve found many restaurants that ranked high in my book, but none quite like ItaliAsia. This restaurant has been added to my list of great restaurant recommendations for my clients, friends and family. I HIGHLY RECOMMEND ITALIASIA. Go and enjoy a wonderful evening of flavorful food, sophisticated ambience, and friendly service, all at a great price.

Investor Corner ~ Monthly Distressed Market Summary (January 2013)

 

This report will compare the distressed single family home sales of January 2013 to that of January 2012 in Hillsborough County. Over the past year, distressed property sales have increased and price points have decreased. The chart shows a slight increase in traditional and foreclosures sales. Although there was a minuet decrease in short sales in comparison to January 2012 sales, the median sale price rose by $13,000. Subscribe to receive the latest news on Tampa’s Real Estate climate, trends, and more.

Single Family Homes (Hillsborough County)

 

 

 

Tips for Owning a Long Term Real Estate Investment

 

Understand What It Means to Be a Landlord

Investing in real estate provides three different ways to obtain a return on an investment. A return could be realized from the sale of a property, through rent collection, and through tax savings on items such as the mortgage interest. When looking to purchase a rental property, the ultimate goal is to ensure that the rental income covers the monthly mortgage, maintenance expenses, HOA fees, insurance, etc.

Secure a Rental Property in an Area with Strong Rental Demand

Communities near universities, hospitals, or schools typically generate a strong rental demand. Condominiums and townhome communities where the Home Owner Association (HOA) maintains much of the exterior are also popular. Please be sure to determine the rental restrictions of the HOA.

Consider Using a Property Management Firm

Determine if you want to manage the property on your own or hire a property management company to handle all of the tenant’s requests. Should you choose to manage the rental property on your own, you will be responsible for handling the tenant’s requests directly. You may have to complete the repairs on your own or hire a professional. If you choose to hire a property management company, the property manager will act as the primary point of contact for all of the tenant’s requests and coordinate repairs with the landlord’s approval. Property management fees may vary but typically includes one month rent for tenant placement and 10% of the monthly rent for property management.

The Numbers Must Make Sense

A good rental property is one that generates enough rental income to cover all of the property expenses and costs. It’s important to review your numbers and determine the gross rent multiplier or cap rate that works for you. Some landlords rent their units between 15% - 25% above the monthly mortgage and maintenance costs. Furthermore, it’s a good business practice to set aside 3% reserves for unexpected maintenance expenses and raise rent each year by 3% - 5%.

Screen Potential Tenants Thoroughly

If you hire a property manager or Realtor, they will handle the screening of the tenant which includes obtaining landlord references, running a credit check and looking at the criminal record. Should you pursue this endeavor on your own, there are a number of online resources to assist you with obtaining the information. Security deposits collected should be equivalent to one month’s rent and deposits should also be collected for any pet the tenant may own. The pre-occupancy walk-thru with the tenant is also important to minimize security deposit discrepancies at move out.

Understand the LandLord Laws

Two resources for rental rules are the U.S. Department of Housing and Urban Development’s Web site, and The Landlord Protection Agency. These sources include state-specific rental guidelines and standardized forms for rental agreements. An attorney or the Landlord Protection Agency also can help draft a lease and assist with evictions. A property manager will also have access to all of these resources.

Tampa’s real estate market has been very favorable when it comes to rental property opportunities. In 2012, many of my investors were able to secure at least five rental properties. Their rental portfolio continues to grow in 2013. If you are looking to buy investment properties in the Tampa Bay area, I can assist you with your investment goals. Start your investment property search today at www.gloriawalters.com.