Real Estate in Northeast Florida and Around the World

At least once a week, I am asked by someone if they should still rent or go ahead and buy.  With the real estate market showing steady signs of improvement, 90% of the time I will respond that it is definitely a good time to buy.  But there are some instances where it makes sense to continue to rent.  Here's a quick formula to determine what is best for you:

* Divide the price of a home you are considering by the annual rent for a place that is comparable in features and location. If the number falls below 15, the scale begins leaning to buying.

* Consider whether you will stay in the home long enough to make the purchase worthwhile. You will need to factor not only the cost of the home, but also paying of closing costs if you are not able to negotiate the seller paying them, as well as any necessary improvements or repairs that you would do. Even if the market value does not decline, should you sell the house and buy another in two or three years, you could incur a loss of investment.

* To have true recovery on your investment, analysts say you should not buy unless you are committed to stay in that dwelling for at least 5 years.  Not all real estate markets are alike, so it is always best to get professional advice from a trusted and professional Realtor®.

So, whether you rent or own, just keep an eye out - I hope to see you around one of our Northeast Florida neighborhoods!

Just a couple of days ago, there was an engulfing fire in an apartment complex not far from my home.  An entire building was destroyed and the cause was a chimney fire. 

With the rare cold temperatures that we have been experiencing in Northeast Florida, many residents with fireplaces have been making use of those fireplaces.  Since we typically only have a handful of evenings that we truly get to enjoy them, we usually take every advantage we can to get a fire started.  But because we only burn a few a few times a year, homeowners get complacent in having the proper inspections done to ensure that the chimneys are free of clogs and debris.  A costly and sometimes deadly mistake.

If you have a fireplace, you should be having an inspection done by a professional at least once a year.  Even with chimney caps, "critters" can still manage their way in, soot can build and cracks can form, leadly to significant if not total property damage and even worse - loss of a loved one.

I've placed a link to a Fireplace Safety Tips document on the "Helpful Links" page here on my website.  Be safe - and I hope to see you around the neighborhood soon!

To listen to the media, one would think that there is absolutely no money available for buying a house, or if money is available, a huge down payment is required and/or a credit score above 750.

The truth is, there is money available for many home buyers, and in many cases, even with minimal down payments and lower credit scores.  True, guidelines have tightened when compared to guidelines in 2005 - but then again, they needed to.  And, if you are in a "jumbo" category, or looking for condominium financing, it may be a bit more difficult.  However, for the average home buyer looking for financing of $417,000 or less, there is money available, at very good interest rates. For loans above $417,000, money is available, but down payment requirements and interest rates will be a bit less attractive, but still very reasonable.

The fact is, lenders are loaning money the old fashioned way - based on the three "C's" of credit.  The buyer should demonstrate the capacity to repay the debt (have a job/income), the creditworthiness to repay the debt (satisfactory credit history) and the collateral to back up the debt should an unfortunate and unexpected situation arise where the buyer cannot repay the debt.  Capacity, Creditworthiness and Collateral are the 3 "C's", and are very much back in demand in the lending front.

Rather than listening to all of the talking heads on the TV and radio spew conjecture, talk to a mortgage professional and get the facts, based on your situation.  Make informed decisions - talk to the professionals in the business and get accurate information.  And don't just talk to one - talk to several, because there are many different programs, terms and features. Find the best fit for you!  And should there be concerns with your ability to gain financing, your mortgage professional is the best counselor as to what you can do to improve your financing options.

I hope you find this information valuable.  See you around the neighborhood!