Heath's Blog

If you are renting on December 1, 2009 you just lost $8000. Here's why!

People who have not owned a home in the last three years are called First Time Buyers by the US Government.  Those First Time Buyers can get $8000 IF they close on a property before December 1, 2009.  So how much house can a renter buy?

One of the old calculators I use shows how much real estate a person with the following income levels might be able to purchase.

The numbers below are as follows: Annual Income (AI), Monthly Income (MI), Maximum Monthly Payment (MMP), Other Monthly Debts (OMD), Price of a Property per Interest Rate of 5%, 6%, and 7% (NOTE: These are ONLY estimates for conversation.)

(With 5% down)
20,000 (AI)    1667 (MI)     467 (MMP)     133 (OMD)     at 5%   66K    at 6%  61.5K     at 7%  56.9K
30,000(AI)     2500 (MI)     700 (MMP)     200 (OMD)     at 5%  100K   at 6%  92.2K     at 7%  85.2K
40,000(AI)     3333 (MI)     933 (MMP)     267 (OMD)     at 5%  133K   at 6%  123K      at 7%  113K

Another method I use is to compare a current rental payment with a mortgage payment at the same amount. For example, if the rent being paid is $900/month, I divide the 900 by 6 and get 150.  That indicates that someone paying a rent of $900 per month could possibly pay a mortgage on a $150,000 property. 

Here is how I used math to get that: First, 6 is the interest rate multiplier when calculating interest on a loan with a 6% interest rate. So, I could multiply six by loan amounts until I get 900. 100 x 6 = 600; 125 x 6 = 750. 150 x 6 = 900.  (Note: you leave off the last 3 zeros of the loan amount for this type of calculation.) 

Or, I can "reverse" the same equation and use the monthly rent amount divided by the interest rate multiplier which then equals the loan amount. This liiks like; 900 / 6 = 150.

Of course other variables will affect the purchase ability of a buyer.  Things like credit score, amount of down payment, and the total of the other debts the buyer has, and the condition of the property, are some of the major ones.  First Time Buyers (people who have not owned a home in the last 3 years) have a major advantage right now, because the US Government will provide you with $8000 of down payment money.  But you have to find a house quickly and close before the end of November 2009!  Call a broker and get started! You only have $8000 and your own home to lose!

Happy real estate buying! 

$550,000,000! That is Five Hundred and Fifty MILLION Dollars! In A Down Economy! For Construction!

Well it must be a good project! Plymouth Rock Studios announced today that it has secured a $550 million construction loan from a Florida company called Prosperity International. Now the Plymouth Rock Studios can close on the Waverly Oaks Golf Course and begin building! "Building what?," you ask.

The high tech complex will consist of 14 sound stages, a 10-acre back lot, production and post-production facilities, a theater and amenity (shops/entertainment) village. Producers will now be able to make movies and television shows from start to finish at one site in southeastern MA! 

If you haven't looked at MAss real estate lately, now is a good time to start!

I was sent this video by a soldier who is training to use technology for war purposes. Real Estate is not the only business that has been affected by technology - the business of war has also. There is a huge advantage of those who have the technology.

Here is a Video Showing Wartime Technology. It is an overhead surveillance of multiple people with weapons being tracked from far away. The armed squad does not survive to inflict any damage.

There is no gore in the video, but the seriousness of war is made very clear.

http://bit.ly/3Yl1KZ

The Video is titled: 5 Armed Insurgents Meet 3 Hellfire Missiles, Ah-64 Gunship kills 5 armed insurgents with 3 Hellfire missles at night in Iraq

Here on Cape Cod, the 102 Fighter Wing has been re-tasked into the 102 Intelligence Wing. The overhead surveillance seen in this video will be happening from more places all over the world.

Thank you, to all those who serve in the military and who are keeping those rockets far from here.

How often should you move the dryer and vacuum around the laundry room - even the walls? The professionals say twice a year. Maybe if you plan to do it twice a year you will get it done once. This is in addition to removing the vent hose to clean the lint build up in it.

Electric dryers and gas dryers should be cleaned more often when there are a large number of loads being done.  Do you at least clean the lint screen when you put a new load in? That can reduce the time it takes to dry a load.

Cleaning your dryer is not only a good for keeping you home safe from fire hazards, it can help with energy efficiency, too.

Happy listing and selling real estate!

Hollywood East, the brain child of some experienced movie executives from Californiahas secured their construction financing! What does this mean? JOBS JOBS JOBS!!!

Not only are there construction jobs coming soon, but the 14 sound stages, 10 acre back lot, production facilities, offices, hotels, and shopping area will bring in more than 2000 jobs after construction. When you add the ancillary businesses and opportunities that will come to this area as supporting jobs, there could be as many a 20,000 new jobs.

Coupled with the new interest from notable people who want to have a home to use while they are doing business at the new studios, it's a beautiful day on Cape Cod!

See:

http://bit.ly/19yNcZ for the video of the signing.

http://bit.ly/3tLi3K to learn what Plymouth Rock Studios and Hollywood East are.

Happy listing and selling real estate!

The World Health Organization has decided that the acceptable level of Radon in a property is now 2.7 pCL/l instead of 4.0 pCL/l. This means that MOST of the US is now a Zone 1. The old Radon map of the US currently shows three zones with Zone 1 indicating possible levels of Radon exceeding the 4.0 range, zone 2 ranges from 2 to 4 pCL/l and Zone 3 are the areas of less than 2.

So the new map, when it is redone, will indicate 2 zones: areas of over 2.7 and all the other areas.

If you want to see a map you can find one here.

Happy listing and selling real estate.

Recently, when I was at the "Family Day" at Otis AFB in Bourne, MA, I found some information that may be helpful to National Guard families. One of the volunteers mentioned that there are benefits available to the families of National Guard service men and women that sometimes get over looked.  So here are the places that the information is available.

Here are some links to thesites with information.   Encourage anyone you know who is serving to look over the sites to see if there are benefits and/or entitlements that they might have missed.

Locating an ID Card facility near you:
http://www.dmdc.osd.mil/rsl/owa/home

Current Pay and Allownce tables:
http://dod.mil/militarypay     http://mypay.dfas.mil/mypay

Thrift Savings Plan:
http://www.tsp.gov

Survivor Benefit Plan:
http://www.defenselink.mil/militarypay/survivor/sbp/index.html

VA Life Insurance:
http://www.insurance.va.gov

Army Emergency Relief:
http://www.aerhq.org

Air Force Aid Society:
http://www.afas.org

Air Force Legal help:
http://hqja.jag.af.mil

Army Legal Help:
http://www.jacnet.army.mil/legal

Uniformed Services Employment and Reemployment Rights Act:
http://www.dol.gov/vets

Employer Support of the Reserve and Guard:
http://www.esgr.com

Health Care:
http://www.tricare.mil
http://www.tricaredentalprogram.com

Montgomery GI Bill:
http://www.gibill.va.gov

Defense Activity for Non-Traditional Educational Support:
http://www.dantes.doded.mil

Service Members Opportunity Colleges:
http://www.soc.aascu.org

Survivors' and Dependents' Education Assistance Program:
http://www.gibill.va.gov/pamphlets/CH35/CH35_Pamphlet_General.htm

National Guard Family Program:
http://www.guardfamily.org

Find a local Family Assistance Center:
http://www.guardfamily.org/Public/Application/ResourceFinderSearch.aspx

Chaplain:
chaplain@ngb.ang.af.mil
http://www.ngb.ang.af.mil

Morale, Welfare and Recreation:
Air Force      http://www-p.afsv.af.mil/default.htm
Army             http://www.armywmr.com

Space Available Travel:
http://www.transcom.mil

Commissary:
http://www.commisaries.com

Exchange:
http://www.aafes.com

I blogged about extending the $8000 tax credit to first time home buyers yesterday. Today I found a link for the call to action from the NAR. If you are an agent, a broker, a consumer, a renter, or someone else who can use this program, please use the letter to encourage your government reps to extend the credit.

I am not sure if more than one extension will be necessary, but there are many consumers who are just waking up to the available credit and how it could help them buy a home. Traditionally, interest rates rise in the second year of a new US President. If that happens, many people will be able to afford less house.

If the tax credit is extended, it will help offset a rise in interest rates. If rates don't rise, there will be a continued market for first time buyers.

Here is the link to a suggested letter:

http://takeaction.realtoractioncenter.com/campaign/hbtc?qp_source=actionmargin

Happy listing and selling real estate!

The following is a Document Checklist That Is Necessary For Completing A Short Sale

- A Financial Information Form showing your debts and assets
- Monthly statement(s) or information for all mortgages and liens against the property including:
Mortgage/lien holder company name
Account number
Balance and monthly payment
- Your Contact information

- Hardship Letter explaining your circumstances
- Last two years of income tax returns
- Last two months bank statements
- Last two paycheck stubs

- A broker's explanation of the property's current value

- A letter authorizing your broker or agent to negotiate with the lender and/or the servicer about your loan.

If you do not have any of the items listed above, a written statement explaining why you don't have them may be acceptable.

The MOST IMPORTANT ITEM is AN EXPERIENCED BROKER!

Happy Listing and Selling real estate!

If you haven't done so already, email your reps and the prez with your request for an extension of the First Time Buyer Tax Credit. Interest rates usually rise in the second year of a new president, so we will need some help for the first timers early next year.

If we don't start asking now, we might see another slowdown. If your market can benefit with the First Time Buyer Tax Credit extension, here's where you can find out who to contact.

Go to http://www.congress.org/congressorg/directory/congdir.tt and enter your zip code. You will see who your reps are and how to contact them. Then, contact them! Some buyers think they have already missed out on the credit. If the credit is extened, those buyers might act faster this time!

And, either re-blog this or write your own blog on the same topic! Keep the momentum of the first time buyers going! It wouldn't hurt to get the NAR involved, too. Email the CEO Dale Stinton! His email is dstinton@realtors.org (as of 9/21/09)

Happy listing and selling real estate!