Nabbing a Mortgage Before Rates Rise – WSJ.com.
So I found this article interesting. There are a lot of different opinions out there, but bottom line is right now it is a historically low time for Interest Rates. I think we will be hard pressed to see such low rates again for the next 10 years. Very soon in our near future all of us are going to be sayin an interest rate below 7 % is a deal.
Reality is they can not stay low forever. Now, the govt. does not know what to do, for they fear the reaction of what could happen if the raise rates right now. I think for the next couple months we are safe in regards to them going up for a little while. However it is inevitable, and therefore will be forced to increase.
Sellers are in a pinch right now, and are feeling the pain of the market. We just put a 13 unit apartment complex in Salt Lake City UTAH under contract. List price was $959,000. We got it under contract for $150,000 less than list price. Did I mention it is bringing in $90,000 of income a year? Now run the cap rate on that one. Investors are still hoarding their money, scared to invest it into the market. There are plenty of deals out there for people to buy up if they would just be realistic with their ROI.
Now, for the average consumer. Real Estate is a great opportunity right now. I hate to say it but I think pricing is stabalizing and I would even be willing to stick my neck out on the line and say that the affordable housing market is even going to rebound and increase a little here soon. We are seeing multiple offers on home in the $200 range. So yes your upper priced properties are still getting destroyed, but hey who can afford a $1 million home in Salt Lake City, UTAH. Not very many people compared to the census. So what do you buy if you are an average guy like me? Well for starters, if I am patient and willing to not let my emotions get the best of me. A good place to start would be with the REO inventory in UTAH. Foreclosures are a plenty, and we are seeing some not so average deals coming across our plates. So you need to get your hands on a list of Foreclosures.
Free Bank Foreclosure List.
You can get a great buy a home, you just need to know how to find those great buys? Bank foreclousres are some of those deals I am talking about. And Utah has its fair share of Bank Foreclosed REO properties. If you are looking for one, let us know and we will get you a list of bank owned home in utah.
REO UTAH
One of the best long term invesment opportunities in the Real Estate market has always been Rental Properties. If you are looking for a Duplex, Tri-plex, 4-plex etc in Salt Lake City UTAH.. Check out these deals. We are seeing some good cap rates come back, especially with rents on the rise.
Let us know if you have any questions about these. Also the number one question we get on a daily basis is, do you have lists of bank owned homes..
FREE BANK FORECLOSURE LISTS FOR UTAH
Wow, interesting article I think. This just came up on the New York Times today. While I agree that short sales have been devasting home values in neighborhoods all across the country, I’m not sure if I agree with paying the homeowner to leave…
Let us know your thoughts. We’d love to hear them.
http://www.nytimes.com/2010/03/08/business/08short.html?scp=2&sq=david%20streitfeld&st=cse
I find it funny that anyone who starts a real estate conversation with me these days, generalize the market and says, “boy the market is really bad huh….” IF I have time to explain to them the real intricacies of the market. Market is GREAT for buyers right now. Also investors. Take the attached spread sheet for example. This small time local contractor has made over 100% PROFIT on four little rose park remodels in the past 12 months! IN THIS MARKET! Our analysis will show you what he paid and what he sold for and before and after pics. Heck, he’s making better money than any of my clients did back when everyone thought the market was good. Just goes to show, often time doing the opposite of the crowd yields the best return.
This is why when people ask, “How is the Real Estate Market in Salt Lake City UTAH?” I respond by saying, there is money to be made, and great buys right now if you can see the potential. I get asked on a daily basis, “Spencer, can you find us a great deal?” Yes, I can find you a great deal, but everyone wants to buy a home on the uppper East bench of Salt Lake City UTAH for $100,000. Not going to happen. However, if you want to make money on a deal.. Take a look at what this investor has done, and I dare you to tell me the market is bad..
Remodeled Houses Sheet1
New Bank REO listings in Salt Lake City UTAH. We are seeing alot of them coming out the last couple of days.. So you need to act fast to get the best deals.
FREE Bank Foreclosure listings in UTAH
Architect shares aquarium vision – Salt Lake Tribune.
We all remember the agressive plans of a few developers to build the Sandy Proscenium Condo towers. The big anchor for the project was the controversial Broadway Theater. It would have put Sandy on the map. Now we all were a little skeptical on the Condo priceing, but we were excited about possibility of putting Sandy on the map..
The same architect that was designing the Proscenium project, has now taken on the new development named “The Meridian” he is trying to have the main anchor of the development and new 120,000 Sq. Ft. Living Planet Aquarium.. This would in theory do the same thing on a different scale. Give Sandy City, UTAH another attraction of national aclaim? Will they pull if off? Can Sandy City, UTAH compete with Downtown Salt Lake City. Especially with the New City Creek Center coming online in the next 12-18 months.
I will be waiting anxiously to see what they get approved, and more importantly. To see where the pricing come in at for the residential condos. Especially with the condo market being destroyed like it has. It will be interesting to see high end condos sell in the Downtown Sandy City ,UTAH area…..
Hey everyone, this is a deal. So act fast, if you are looking for a great Real Estate Deal in Salt Lake City UTAH. Here it is.. I keep posting these great buys, and people are passing up on them. Act now, or you will miss out on a deal with low Intrest Rates..
I have a client who has been looking in Lehi, Draper, South Jordan, and Riverton. Lately we’ve been focusing on Lehi because there are some good buys there for a home built after 2004 with a 2 car garage, from 2,500 to 3,100 sq feet. There are a lot of bank repos and short sales and if buyers are patient with the shorts and are willing to jump on the REO properties, then they have a good chance at getting a good, solid buy. Inevitably the question for some of these buyers becomes, do I buy a home with an unfinished basement for around $212K-$220K, or do I just pay a bit more up to $230K range and get one with a finished basment? Even if you’re price range is more than this, the following example will still give you a good idea of what to do with your great buy you want to pick up. This is similar to the email I sent my client:
Here’s the things I would look at when considering an unfinished basement or a finished one.
1) Payment. Let’s just say you paid $228,000 for a bank owned listing with a finished basement and did an FHA loan with a 5.25% mortgage rate. Your monthly payment would be $1,215. Add taxes of $105/ month, HOA of $57, and mortgage insurance of roughly $100, and you’ll be looking at about $1,477 total. Now say you buy this other short sale listing with an unfinished basement for $211,800 with the same terms. Your monthly payment is $1,128, property taxes of $105, then an HOA of $57, and the mortgage insurance of roughly $100 as well, leaving you with an out the door monthly total of $1,390. The difference between the two scenarios is roughly $87 per month.
2) Are you going to finish the basement? I called a builder we have worked with and asked him what he can finish a basement for these days. He said a good number to start with is $20/sq foot for this grade of house. Granite countertops, knotty alder cabinets, upgraded carpet, tile and or wood floors, etc. Obviously this number can go up or down depending on how nice you decide to finish it, but this will get you started. Meaning, if you buy the unfinished basement house, you should plan on spending about $23,000 to finish it, effectively putting you INTO the house about $234,800 (more than the house with a finished basement), and a lot more cash out of pocket. (about $30,000 with your down-payment for the FHA loan AND the remodel, assuming the seller pays your closing costs. Compare that to roughly $8,000 down-payment ONLY if you buy the finished basement and do an FHA loan with seller paying closing costs ).
The biggest reason I bring this up is resale value. If you don’t plan on finishing the basement, then I think you will probably be better off buying one that is finished. Let’s say the properties appreciate to be $270K-$280K properties a few years down the road. Your demographic of potential buyers is still probably a younger couple with a couple children, and they tend to be more strapped for cash, meaning they probably won’t have the funds to come in and finish a basement even if the house is priced $15K-$20K lower. They’d rather just buy a finished product and have little bit higher monthly payment as shown in example #1 because they need and want the finished sq footage. There is always the couple where the husband is a handyman and can do some work himself, but if you’re playing the odds, I personally wouldn’t bet on that.
To sum up, I wouldn’t completely rule out an unfinished basement, but I would make sure you are getting a really, really good deal on it or else I would rather finance more and have a house that is ready to be lived in after some touch up paint and maybe some carpet. I would want to make sure that by the time I pay all the cash out of pocket to finish the basement, that it is still in line with other comparables with finished basements.
Free Bank Foreclosure list in UTAH
Here are the best deals for the week. I went through all of the new Bank foreclosures this week, and narrowed it down to the best one’s.. Let me know if you want any more info.. If you want a free list of the newest foreclosures, click on the link above..
Interest Rate Update..What will happend to interest rates this year?
Here are the best Bank deals in Utah for the day.. If you are looking for some bank deal, here they are..
Free Utah Bank Foreclosure List
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