Billonaire Says Real Estate is Best Investment Possible

KCM Crew, October 22nd, 2014

Billionaire says Real Estate is Best Investment Possible |Keeping Current Matters

Billionaire money manager John Paulson was interviewed at the Delivering Alpha Conference presented by CNBC and Institutional Investor. During his session he boldly stated:

“I still think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you’re the owner-occupier of.”

Who is John Paulson?

Paulson is the person who, back in 2005 & 2006, made a fortune betting that the subprime mortgage mess would cause the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson? According to Forbes, John Paulson is:

“A multibillionaire hedge fund operator and the investment genius.”

According to the Wall Street Journal, Paulson is:

“A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”


The best investment you can make is to buy a primary residence that you’re the owner-occupier of…
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Why does he believe homeownership is such a great investment?

Paulson breaks down the math of homeownership as an investment:

“Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment.”

How many are seeing a 50% return on a cash investment right now? Paulson goes on to compare the long term financial benefits of owning verses renting:

“And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”

Bottom Line

Whenever a billionaire gives investment advice, people usually clamor to hear it. This billionaire gave simple advice – if you don’t yet live in your own home, go buy one.Line-Break

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10 Home Maintenance Musts for Winter

10-maintenance-tipsHere are our favorite home maintenance tips from bobvila.com with suggestions on how to keep properties in peak condition over the winter months.

 

  1. Check for Peeling Paint. Inspect exterior walls to see if any paint is peeling on the house. Peeling paint is an indicator that the existing paint film is deteriorating and can no longer protect the siding of the house.
  2. Clean the Gutters. After all the leaves have fallen, clean out the gutters and downspouts, flush them out and inspect joints and brackets. Clogged gutters are a major cause of ice dams. Be sure to replace damaged gutters with new ones that have built-in leaf guards.
  3. Caulk Windows. Be sure to caulk around windows and doorframes to prevent heat from escaping. Caulking and sealing openings is one of the least expensive maintenance jobs and will save on your electric bill in the long run!
  4. Inspect the Roof. Make sure the roof is in good shape and not missing any loose shingles. It’s better to proactively deal with repairs in the fall than to discover a leaky roof during a snowstorm
  5. Ready the Fireplace. Have your heating system checked by a licensed heating contractor. Heating systems will use fuel more efficiently, last longer, and have fewer problems if properly serviced. Get your wood stove and fireplace in working order.
  6. Seal the Driveway. Inspect your driveway for cracks. Clean out and repair any damage with driveway filler, then coat with a commercial sealer. Sealing the driveway now will help extend the life of the asphalt through the winter and beyond.
  7. Reverse Ceiling Fan. Change the direction of your ceiling fan to create an upward draft that redistributes warm air from the ceiling. Clean your humidifiers regularly during the heating season. Bacteria and spores can develop in a dirty water tank resulting in unclean moisture misting out into your room.
  8. Cover Air Conditioners. Vacuum internal parts of air conditioners. Remove units from windows or wrap the outside box with an approved tarp or plastic air conditioner cover to prevent rusting of vital parts.
  9. Prepare Snow Equipment. Check to see that all of your snow equipment is up and running before the first flurry falls. Organize your snow clearing gear. When snow arrives you’ll want to have shovels, roof rakes, and snow blowers where you can get to them.
  10. Prepare the Deck for Winter. Clean porch and deck furniture, and look for any needed repairs. Cover and store outdoor furniture and barbecues in a protected area. Make sure all soil is emptied from pots and planters. Dirt left in clay pots will freeze and cause the pots to crack if left outside.
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#1 Reason You Should Sell Now

Posted: 21 Oct 2014 KCM Crew

#1 Reason You Should Sell Now | Keeping Current Matters

The price of any item (including residential real estate) is determined by ‘supply and demand’.  If the supply of an item is larger than the amount of people looking to purchase that item, the price will decrease.


With winter right around the corner, now may be the best time to get the best price. #KCM2014
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According to the National Association of Realtors (NAR), historically there is a natural decline in buyers looking to purchase a home (also known as foot traffic) as the winter months approach. Shown in the graph below:Foot Traffic to Decline in Winter Months | Keeping Current MattersNAR goes a step further to say that there is a direct correlation between “foot traffic” and “pending contracts/closed sales one to two months later”.

Bottom Line

The real estate market has done well to recover from the slow start we experienced due in part to the inclement weather at the beginning of 2014.  But with those winter months right around the corner, now may be the best time to get the best price.

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10 Festive and Functional Ways to Use Fall Leaves

10 Festive and Functional Ways to Use Fall Leaves
Fall leaves. They’re not just a wonder to gaze at – and a nuisance to rake up. They also offer countless opportunities for home décor and arts and crafts. What’s better than making your house look good and giving your kids something fun to do? Not much.
Full Story: http://realtytimes.com/rtpages/20141021-10-Festive-and-Functional-Ways-to-Use-Fall-Leaves.htm

Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” …… click LIKE to receive real estate info and what’s happening in Marshfield.  

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Mortgage Rates as of October 20, 2014

 

Mortgage Program Interest Rate Fully Indexed
Rate
APR* Monthly Payment
Per Thousand
30 Year Fixed
No Points
3.875%
30 Year Term
3.926% $4.71 – 360 payments of $1,504.76
15 Year Fixed
No Points
3.000%
15 Year Term
3.084% $6.91 – 180 payments of $2,209.86
5/1 ARM**
No Points
2.75%
5 Year Term
2.75%
25 Year Term
2.794% $4.08 – 360 payments of $1,306.37
5/1 Jumbo ARM**
No Points
2.625%
5 Year Term
2.875%
25 Year Term
2.818% $4.02 – 60 payments of $2,811.55
$4.13 – 300 payments of $2,890.64
7/1 Jumbo ARM**
No Points
3.000%
7 Year Term
2.875%
23 Year Term
2.962% $4.22 – 84 payments of $2,951.23
$4.16 – 276 payments of $2,913.72
10/1 Jumbo ARM**
No Points
3.25%
10 Year Term
2.75%
20 Year Term
3.083% $4.35 – 120 payments of $3,046.44
$4.16 – 240 payments of $2,912.01
30 Year Jumbo Fixed
No Points
4.000%
30 Year Term
4.031% $4.77 – 360 payments of $3,341.91

Above payments do not include taxes or insurance. Your payment will be greater. *Annual Percentage Rate. Rates effective publication date and subject to change without notice. Rates quoted assuming taxes escrowed. 30 Year Fixed, 15 Year Fixed, and 5/1 ARM rates applicable for conforming loans on single family properties; examples based on a loan amount of $320,000 with 20% down payment. 5/1 Jumbo ARM, 7/1 Jumbo ARM, 10/1 Jumbo ARM, and 30 Year Jumbo Fixed rates applicable for non-conforming loans on single family properties; examples based on a loan amount of $700,000 with 30% down payment. Annual Percentage Rates may increase after consum mation. Subject to credit approval. **After the fixed period rate of 60 months for the 5/1 ARM, the rate will adjust annually to the 1 year LIBOR plus 2.25%. Subject to annual caps of 2% and a lifetime cap of 5% over the initial rate. After the fixed period rate of 84 months for the 7/1 ARM or 120 months for the 10/1 ARM, the rate will adjust annually to the 1 year LIBOR plus 2.25%. Subject to an initial adjustment cap of 5% over the initial rate, a subsequent cap of 2% over the initial rate, and a lifetime cap of 5% over the initial rate.

 

For more information, please contact:

Bob Hagerty, Senior Loan Officer, NMLS MLO# 704244

 Office: 781-474-5092Cell: 781-733-4051

bhagerty@leaderbank.comwww.leaderbank.com/agent/bhagerty

 

Toll Free 1-877-691-7900  |  www.leaderbank.com

Lender NMLS# 449250

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5 Demands to Make on Your Real Estate Agent

Posted: 20 Oct 2014 KCM Crew

5 Demands to Make on Your Real Estate Agent | Keeping Current Matters

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

Here are the top 5 demands to make of your Real Estate Agent when selling your house:

1. Tell the truth about the price

Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.


Every house in today’s market must be sold twice: 1st to the buyer, then to the bank. #KCM2014
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The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

2. Understand the timetable with which your family is dealing

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

3. Remove as many of the challenges as possible

It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family  (commission, length, etc.), don’t expect them to turn into Super hero when they are negotiating for you and your family with your buyer.

4. Help with the relocation

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

5. Get the house SOLD!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT!

Line-Break

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Well-Groomed Landscape May Increase Home’s Value

RealtyTimes.com, October 18th, 2014
Well-groomed yards create greater curb appeal but new research now shows that a home with upgraded landscaping, from average to excellent, can increase the home’s overall value by as much as 12 percent, according to a study by Virginia Tech.
Full Story: http://realtytimes.com/rtpages/20141018-Well-Groomed-Landscape-May-Increase-Homes-Value.htm

Follow Len and Leslie Marma of Success! Real Estate on their facebook business page, “Marshfield Matters” …… click LIKE to receive real estate info and what’s happening in Marshfield.  

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