Do You Know the Real Cost of Renting vs. Buying?

Some Highlights:

• Historically, the choice between renting or buying a home has been a close decision.
• Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
• Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!

You might also enjoy reading...

• 2 Myths That May Be Holding Back Buyers
• Buying a Home is More Affordable Than Renting in 66% of US Counties
• You Need a Professional on Your Team When Buying a Home
• 3 Tips for Making Your Dream of Buying a Home Come True [INFOGRAPHIC]

Ivan

Parada

Real Estate Advisor

THE CARDENAS GROUP REALTY

Weston Fl

786-991-5551

"OUR PASSION IS TO SERVE YOU WITH INTEGRITY AND EXCELLENCE, OUR VISION IS TO HELP YOU INVEST IN A WISE AND PROFITABLE WAY, AND OUR MISSION IS TO EXCEED YOUR EXPECTATIONS!"

                

A BIG HOLIDAY GIFT FOR US HOMEOWNERS

By Kenneth Harney

The average owner saw a $12,500 gain in equity in the past year: CoreLogic

The biggest holiday gift this year for millions of Americans doesn’t fit under a tree and can be a little hard to grasp, but it may be of exceptional value: If you own a home, the odds are good that your equity holdings increased by thousands of dollars over the past 12 months.

New quarterly data released by the Federal Reserve reveal that American homeowners’ equity grew by $1.02 trillion in the 12-month period ending Sept. 30. A giant national number like that may glaze your eyes and be difficult to relate to personally, but calculations made by analytics and valuation tech firm CoreLogic bring it down to earth: The average owner saw a $12,500 gain in equity last year.

In hot real estate markets on the West Coast, the average was $25,000-plus.

How did your house fare? Unless you follow listings and sales closely in your neighborhood, you might have missed what’s been happening to your own equity.

Property values jumped in the past 12 months in most major markets primarily because of rising prices fed by low interest rates and tight inventories of homes.

Nationwide they were up 5.8 percent year-over-year, according to CoreLogic. Reductions in mortgage principal debts through regular amortization played a role, as did refinancings by owners into loan types with shorter terms — mainly 15 years — and faster payoffs of principal. Renovations of homes pushed up values as well.

Unfortunately, not everybody saw gains. Zillow, the online real estate marketplace and research site, reported last week that more than one in 10 owners in the U.S. continue to have negative equity, but that figure has plunged by nearly two-thirds during the past 48 months as the economy has strengthened. And it’s still falling. CoreLogic says 384,000 homeowners with mortgages transitioned from negative to positive equity positions during the latest quarter alone.

That’s great. But assuming you’ve been a beneficiary, what do you actually do with the “gift” of greater equity? Here are two strategies:

No. 1: Be happy. Don’t touch it. Your equity may well be the largest component of your household wealth, and it could continue to grow over time. If you have no urgent need for spendable cash, don’t unwrap this gift.

No. 2: Tap into it. If you do have a responsible use for some of your equity gains, explore your options for liquefying them. The most popular and low-cost way is to take out a home equity credit line or HELOC. As a general rule, lenders will let you borrow up to 80 percent (some go to 90 percent) of your “combined loan to value” ratio or “CLTV.” That means the sum of your current mortgage indebtedness plus the amount you want to borrow relative to the market value of your home.

Say you have a house worth $400,000 with a $200,000 outstanding balance on your primary mortgage. An 80 percent CLTV comes to $320,000, giving you potentially up to $120,000 available to borrow against via an equity credit line. That may be much more than you need for projects such as remodeling the kitchen, consolidation of high interest rate credit card balances, paying off student loan debt or funding an investment in a business venture. But it’s good to know you’ve got that cushion of cash in reserve.

Terms on HELOCs remain attractive, despite the increase in interest rates for all mortgage products since the November elections. As of Dec. 16, according to listings on Bankrate.com, you could find starting rates on a $30,000 credit line as low as 3.24 percent (Third Federal Savings and Loan Association of Cleveland), 3.75 percent from Pentagon Federal Credit Union (if you qualify as a member) and 5.75 percent from TD Bank.

Most lenders are looking for solid credit scores (minimum 700 FICO; higher strongly preferred) and tie their adjustable rates to the prime rate. Some lenders charge annual fees and require a minimum drawdown of funds when you open the line.

Many banks also offer fixed rate second mortgages — home equity loans as opposed to floating-rate credit lines — that are fully amortizing over periods ranging from five years to 20 years. Current rates range from the low 4 percent range to 5 percent and up, depending on payback terms and credit quality.

Bottom line: If you think your equity grew in the past year, and you have a solid purpose in mind, tap away. Rates are widely expected to rise in 2017.

https://therealdeal.com/2016/12/23/a-big-holiday-gift-for-us-homeowners/

Ivan Parada

Real Estate Advisor

Cell: 786.991.5551

E-mail: ivanparada7@gmail.com

2813 Executive Park Dr #102, 

Weston, FL. 33331

"MY PASSION IS TO SERVE YOU WITH INTEGRITY AND EXCELLENCE, 

MY VISION IS TO HELP YOU INVEST IN A WISE AND PROFITABLE WAY, 

AND MY MISSION IS TO EXCEED YOUR EXPECTATIONS!"

                

TOP 10 HAPPIEST CITIES … AND 10 THAT WILL CRUSH YOUR SOUL

Wendell Metzen/Getty Images

http://www.realtor.com/news/trends/happiest-and-unhappiest-cities-2017/

By Judy Dutton | Mar 8, 2017

Are you happy? Like, really happy? If not (and, hey, we truly feel your pain), one solution may be as simple as packing up and moving to a more peaceful place. According to the latest results of the Gallup-Healthways Well-Being Index, an annual study that measures contentment levels in all major U.S. cities, the happiest folks in America can be found in … Naples, FL! And now they have even more reason to be thrilled!

This is actually the second year in a row that Naples topped the list, followed this year by Barnstable, MA, and Santa Cruz, CA. Many of the happiest communities—judged by a variety of factors such as social cohesiveness, financial security, and even how often its inhabitants try new things—hail from California (seven in the top 25), Colorado (three), and Texas (three).

As for the most miserable areas? Rest assured, Gallup checked for these pits of despair, too. The “winners” here: Montgomery, AL. That’s followed by Erie, PA, and Beaumont, TX. Behold the happiest and most miserable communities below:

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HAPPIEST CITIES

1. Naples, FL
2. Barnstable, MA
3. Santa Cruz, CA
4. Honolulu, HI
5. Charlottesville, VA
6. North Port, FL
7. San Luis Obispo, CA
8. Lynchburg, VA
9. Hilton Head, SC
10. Boulder, CO

UNHAPPIEST CITIES

1. Montgomery, AL
2. Erie, PA
3. Beaumont, TX
4. Chico, CA
5. Flint, MI
6. Canton, OH
7. Topeka, KS
8. Huntington, WV
9. Hickory, NC
10. Fort Smith, AR

WHY CERTAIN CITIES ARE HAPPIER THAN OTHERS

So why is Naples so darn happy? Chalk it up to the area’s killer combo of great weather, wealth, and health.

“Collier County, where Naples is located, has the highest per capita income in the state,” explains real estate attorney Bob Tankel. “Keep in mind that boxer Joe Louis once said, ‘I don’t like money very much, but it calms my nerves.’ Collier County also ranks second in health outcomes and third in length of life. So money may not buy happiness, but if you have money and health, there’s little reason to be unhappy.”

HAPPIEST & UNHAPPIEST CITIES

GALLUP-HEALTHWAYS

America’s top three happy hot spots also have something else in common: They’re major vacation destinations. So who wouldn’t want to kick back in paradise year-round rather than for a measly one or two weeks?

“The Naples/Marco Island corridor is a resortlike environment that helps people feel good every day,” says Florida Realtor® Cara Ameer. “With gorgeous beaches and an abundance of activities on the water as well as land, it’s manageable in size, too. There are a lot of retirees and snowbirds who call this area home at various times of year.”

Meanwhile, Barnstable also boasts beaches, a proud sense of tradition (it’s the Kennedy clan enclave, after all), and plenty of small-town New England charm. Santa Cruz, yet again, has sand, surf, and mountains, as well as plenty of open-minded West Coasters. What’s not to love?

AS FOR THE HELLHOLES, THE OFT-LOUSY WEATHER PLAYS A LARGE ROLE.

“The unhappiest cities tend to have more uncomfortable climates such as very hot and humid, like Southern locations, or go through weather extremes like the Midwest, where they’re cold in the winter and hot in the summer with bad storms and tornadoes,” says Ameer.

These miserable cities also tend to have limited opportunities in terms of careers, social contacts, and recreation.

“The better climates drive job growth due to tourism or businesses that want to relocate there,” Ameer explains. “This draws newcomers to the area, who are open to meeting new people and hence want to bring their time, talent, and energy to the community instead of looking for a way out. One factor continues to feed the other and so on. There is definitely a chain reaction of positive or negative things that can come of geographic locations considered more desirable versus others.”

All that said, if there’s a silver lining to living in an unhappy place, it’s that real estate there is a deal! Case in point: The median listing price for a home in “happy” Naples is $400,000; for down-and-out Montgomery, it’s a mere $129,000 (check out how your own area stacks up at.

So cheer up! If that’s not some sorta reason to be happy, we don’t know what is.

>>> READ MORE:

Ivan

Parada

Real Estate Advisor

THE CARDENAS GROUP REALTY

Weston Fl

786-991-5551

"OUR PASSION IS TO SERVE YOU WITH INTEGRITY AND EXCELLENCE, OUR VISION IS TO HELP YOU INVEST IN A WISE AND PROFITABLE WAY, AND OUR MISSION IS TO EXCEED YOUR EXPECTATIONS!"

                

REAL CURB APPEAL: 5 EASY TRANSFORMATIONS

Curb appeal is more than just trying to impress or catch the eye of your neighbors. It’s also about creating a sense of welcoming warmth before visitors even step through the door. And the truth is, creating curb appeal doesn’t have to be expensive. There are a few simple things you can do to give your house and yard a unique and outstanding first impression. Every area is different, so check with your HOA first to find out about any restrictions that may affect your project.


1. Create a mailbox garden
A little extra effort with your landscaping goes a long way in creating curb appeal. A simple planting around your mailbox is a quick project that can be completed in an afternoon, but the visual impact will last far longer. Start by choosing plants and flowers that will remain small and controlled, to ensure they don’t interfere with the box or become unruly. Select colors that create visual interest while coordinating with the color of your home and existing landscape plants.

After removing the grass from the area you wish to plant, mix in some quality bagged soil or compost before planting to ensure that your plants will get the nutrients they need. Bury the plants to the same depth they are planted in the containers they were purchased in, then add a 2-3” layer of mulch to control erosion and keep the soil moist. Water well and continue to water daily for the first few days while your mailbox garden establishes itself.


2. Have a front porch chat
If you have a front porch, don’t miss out on a great opportunity to create an inviting outdoor room. It is a perfect place to meet new friends and relax with old ones. Consider adding comfortable, inviting seating—like rocking chairs or benches—and a small café table, then brew a pot of coffee and call your neighbors. Complete the look by adding seasonal plants and décor for a great outdoor space that will get everyone talking.


3. Plant your entry
A few well-maintained plants and flowers in coordinated decorative containers can go a long way toward making your entry more welcoming. Plants are easier to care for than you might think, and a few pots in a variety of colors and designs can make a stunning visual statement. For best results, use a potting soil that is made to retain water; this will keep your greenery looking great even if you forget to water them once in a while.


4. Announce the seasons
Even the most beautiful front door can be livened up with a touch of seasonal inspiration. Don’t limit yourself to the usual winter décor when there are four seasons and plenty of holidays to celebrate! Attractive wreaths and banners can be made from an assortment of different materials in a variety of colors, styles, and textures, so you are sure to find something that complements your home.


5. Light up the night
With all the time and effort that goes into bringing out the curb appeal of your new home, make sure it can be seen no matter what time of day it is. A little lighting goes a long way toward drawing the eye right where you want it.

Pathway lighting along a walkway or driveway not only enhances the after-dark beauty of your landscape, it makes it safer as well. It comes in a variety of styles and colors, and there are even eco-conscious solar lighting options that won't affect your power bill. Create even more visual interest with strategically placed uplights. Uplighting is perfect for accentuating architectural features and creating drama.

https://www.pulte.com/design/industry-trends/curb-appeal?EML_PG=13471

"OUR PASSION IS TO SERVE YOU WITH INTEGRITY AND EXCELLENCE, OUR VISION IS TO HELP YOU INVEST IN A WISE AND PROFITABLE WAY, AND OUR MISSION IS TO EXCEED YOUR EXPECTATIONS!"

CONTACT US:

Ivan Parada
REALTOR®


Cell: 786.991.5551
E-mail: ivanparada7@gmail.com
2813 Executive Park Dr. # 102 
Weston, FL. 33331