Historic Low Mortgage Rates!

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, Buying Tips, Cape Coral, Cape Coral News, Cape Coral Real Estate, Cape Coral Real Estate Market, Cape Coral Realtor, FL Real Estate Market Update, Florida Housing Market, Florida Mortgage News, Florida Real Estate, Florida Real Estate News, Lee County Homes, Lower Your Interest Rates, Money Saving Tips, Real Estate Investment, Real Estate Market, Real Estate News, SWFL Home Sales, SWFL Real Estate

SWFL Real Estate News 1

Mortgage interest rates are back down to historic lows!

Are you thinking about buying a new home in Southwest Florida? If so I have some really good new for you! With these new all time low interest rates you can buy more house for your money!

Lower Interest RatesAs you may or may not know, the 30 year fixed rate home mortgage is based upon the US Treasury’s 10 year bond yield. Last week, the week of January 12, 2015 saw the 10 year treasury dip down under 2% to 1.816% as of the writing of this article.

So you might be wondering, how does this benefit home buyers, sellers? The drop in the 10 year treasury, will virtually immediately signal a drop in 30 year mortgage rates that are already at 4% or less for a well qualified buyer.

We will likely see 30 year mortgage rates down to 3.75% to 3.875% therefore increasing a home buyers borrowing power by reducing the monthly payment required to support the loan. In turn this low rate also helps home sellers as it eases the stress of buyers just a bit while also increasing how much home they can afford to buy.

Nobody knows for sure how long rates will stay at these historic lows, but now is a great time to buy a home as the affordability has never been greater. If you’re not sure how much home you can afford, contact me for assistance.

I’m always happy to answer any questions and educate my clients on what options will benefit them most.  Please feel free to share this blog post with anyone you feel might be interested or find value in this information.

Bob Ashworth Remax Realtor SWFL

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

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Business Card 2014

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com

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It’s a good time to buy a Florida Home!

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, Cape Coral, Cape Coral News, Cape Coral Real Estate, Cape Coral Real Estate Market, Cape Coral Realtor, Florida Housing Market, Florida Real Estate, Florida Real Estate News, Lee County Homes, Real Estate Market, Real Estate News, SWFL Homes for Sale, SWFL Market News, SWFL Real Estate

Florida Homes for Sale

Canadian snowbirds encouraged to buy a Fla. home

MONTREAL, Canada 2014 – As Canadian snowbirds prepare to head south, the Annual Snowbird outlook from BMO Bank of Montreal is telling Canadians that “U.S. housing affordability remains healthy, and prices are expected to increase in Florida, Arizona and other popular areas.”

The bank offers only two warnings to Canadians considering a southern move: The border crossing rules are more strict, and a strengthening U.S. dollar could make purchases in Florida and elsewhere more expensive.

“Overall, U.S. house prices have soared 20 percent in the past two years, but are only about half way back to their peak in 2006,” and “Traditional destinations for Canadian Snowbirds remain affordable,” the bank says. “Compared to their peaks, prices in Tampa are down 34 percent, Phoenix down 30 percent, Las Vegas off 43 percent, and Miami down a whopping 52 percent.”

“Now, with the American economy and employment gaining strength, home sales should gather some momentum,” advises Sal Guatieri, senior economist, BMO Capital Markets. “We expect prices to rise over time alongside growing family incomes.”

Guatieri also says BMO expects “capital gains appreciation for Canadians who purchase U.S. property.”

Florida a hotspot

Florida continues to be a hotspot with Canadians representing the largest foreign buyers of Florida housing, BMO says. More than 500,000 Canadians currently own real estate in Florida.

“Florida properties are a bargain compared to real estate in Canada. The median priced home in Florida is nearly half that in Canada,” says Jack Ablin, chief investment officer, BMO Harris Private Bank. “Popular areas include Sarasota-Bradenton-Venice, Orlando-Kissimmee, Miami-Ft. Lauderdale-Palm Beach, Cape Coral-Ft. Myers, Tampa-St. Petersburg and Naples-Marco Island.

“We project retirement state housing prices to outpace the national average, due to increasing numbers of retirees, and abundance of capital from abroad and lower interest rates. Foreign buyers are interested in U.S. real estate because it’s relatively cheap when gauged against incomes, and it’s situated in a stable/safe haven economy,” added Mr. Ablin.

Click here to view original article.

Bob Ashworth

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

 Like us on Facebook   Follow us on Twitter  View our profile on LinkedIn  Visit our blog  Find us on Yelp   Find us on Google+

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com

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Shortening the Life Span of your Mortgage!

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, Buying Tips, Cape Coral Real Estate, Cape Coral Real Estate Market, Cape Coral Realtor, Early Mortgage Pay Off, Florida Mortgage News, Money Saving Tips, Mortgage Advice, Mortgage Changes, Mortgage News, Mortgage Tips, Real Estate Advice, Real Estate News, SWFL Home Tips, SWFL Mortgage Tips, SWFL Real Estate, Uncategorized

Holding house keys on house shaped keychain in front of a new home

How to pay off your 30 year mortgage in 15 years.

Paying off your mortgage in half the time is easier than you think. Actually, it’s really quite simple, although this advice is rarely ever given to the public. Every one of my clients who closes on a home with me on a 30 year mortgage loan receives this guidance from me and today I want to share it with you.

Early Mortgage Pay OffSurely the main reason that most home buyers select a 30 year loan over a 15 year term is not because they prefer to pay the mortgage twice as long. They make this choice because of its affordability since a 30 year loan has a much lower monthly payment than a 15 year one. The other reason to choose a 30 year over a 15 year is more flexibility. If you’re committed to a 15 year term with your home loan lender when some unforeseen event occurs where all of a sudden your income drops will mostly likely be stuck making the higher payments. This also means you will be unable to refinance into a 30 year which would lower your payments. However, If you were committed to a 30 year mortgage and make additional principle payments on your own, you can immediately halt the additional principle you’ve been sending to conserve cash.

Let’s take a look at the two different options using a $200,000 mortgage loan as the example. For simplicity sake I’ll leave out real estate taxes and insurance and instead just focus on the principle and interest associated with the two different loans. I’ll also use a typical interest rate in today’s market (summer 2014) for an owner occupant home loan.

Mortgage Pay Off Calculator SWFLA $200,000 loan with a 30 year payback at 4.125% would be $969 per month

A $200,000 loan with a 15 year payback at 3.375% would be $1,418 per month

The simple formula is just this. Every month when you review your mortgage loan statement from your lender, find the amount of the payment that is slated to go towards your principle. Hint: it’s usually the smallest amount of all!

The first monthly payment on your $200,000, 30 year loan at 4.125% will be $969 plus or minus a few cents, and not including taxes and insurance. Of that $969, only $282 will go towards your principle balance. Now while your payment will remain the same for the life of the loan, the amount that goes towards principle and interest will change as your principle balance is reduced.

Add $282 to your payment. You’ve just made 2 months of payments. Do this same thing every month, and your 30 year or 360 month mortgage just became 15 years, or 180 months.

Cutting home loanFurther examples:

Next payment the very following month –

Now because you made 2 principle payments, one that was required, and one that was your extra, your new principle balance is now $199,436. Your required payment is still $969 but the amount that will now go towards the principle is $283. Only $1.00 more, but at this pace you’ll pay off your 30 year mortgage in 15 years.

Yes, of course as time goes on the additional principle does become more of a burden. Although it will get better down the road. And at that point you’ll have made quite a dent in not only your principle balance, but in the years required to be mortgage free.

Final example:

5 years or 60 payments made, each including an extra month of principle. Your principle balance will be approximately $160,000 as opposed to $180,000 had you not been making the extra payments. When your principle balance is around $160,000, the required payment is still $969, though $415 +/- is what is going towards principle now. If you’re still committed to a 15 year payoff, your extra principle payment is more than it was in the beginning, but remember; all these principle payments are equity in your home.

Even if you are not able to continue to increase the amount of your extra payment, you’ve dramatically reduced your balance and, your loan will pay off years ahead of schedule saving you thousands of dollars in interest.

bob-remax-sign

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

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Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
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Home Prices on the Rise

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Tips, Cape Coral, Cape Coral News, Cape Coral Real Estate, Cape Coral Real Estate Market, Cape Coral Realtor, Florida Housing Market, Florida Real Estate, Florida Real Estate News

 SWFL home prices on the rise

Demand for gulf-access Cape Coral homes driving up prices

wink-logoCAPE CORAL, Fla. – The price of paradise is skyrocketing. Only WINK News is learning that waterfront property in Cape Coral is on the rise.

A local realtor tells WINK News over the course of one year from January to January he saw a roughly 24 percent price increase.

That price jump is not lost on David Payne. He lives in upstate New York but spends the winters at his home in Cape Coral. “We bought in 2009, decided we’d like a little bigger home than what we have,” Payne said.

He’s been looking for that bigger dream home on the water for a couple of years. And after watching the market he’s thinking “… maybe hurry the process up before they keep going?” he laughed. “Seems to be they are definitely on the increase.”

Realtor Marc Joseph tells WINK News the demand for gulf access homes is increasing which means the prices are, as well.

He says it’s a good sign of a recovering economy. He believes the prices are only going to go up from here. “The market inventory has gotten very tight. And as we tighten with our market. Prices go up,” said Joseph.

That means you’re going to pay a lot more now hat you would have a year ago.

“As of January the median sale price of saltwater homes, it’s $384,000. If you look back a year ago it was $310,000,” said Joseph. “As long as you believe that the sun is going to shine. People will return. The prices will continue to increase. It’s a prime example of what’s happening right now.”

Paradise for sale. But paradise that comes at a premium. “We were just looking for the deal of the century before. Now, we’re looking for the deal. Hopefully that will work for us!” said Payne.

As for some advice for buyers, Joseph says make sure you do your research, and educate yourself before making that big purchase.

Click here to view original article.

SWFL Real Estate

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Like me on Facebook    Follow me on Twitter    View my profile on LinkedIn    Visit my blog

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com
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Home Prices on the Rise!

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Tips, Cape Coral, Cape Coral News, Cape Coral Real Estate, Cape Coral Real Estate Market, Fort Myers Real Estate, Homes for Sale SWFL, Real Estate Market, Real Estate News, SWFL Housing Update, SWFL Market News, SWFL News, SWFL Real Estate

Cape Coral homes for sale

As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. Today I would like to share this article on the rise in home prices in Cape Coral – NOW is definitely the time for you to purchase a home in Southwest Florida if you haven’t already!

Demand for gulf-access Cape Coral homes driving up prices

wink-logoCAPE CORAL, Fla. – The price of paradise is skyrocketing. Only WINK News is learning that waterfront property in Cape Coral is on the rise.

A local realtor tells WINK News over the course of one year from January to January he saw a roughly 24 percent price increase.

That price jump is not lost on David Payne. He lives in upstate New York but spends the winters at his home in Cape Coral. “We bought in 2009, decided we’d like a little bigger home than what we have,” Payne said.

cape coral floridaHe’s been looking for that bigger dream home on the water for a couple of years. And after watching the market he’s thinking “… maybe hurry the process up before they keep going?” he laughed. “Seems to be they are definitely on the increase.”

Realtor Marc Joseph tells WINK News the demand for gulf access homes is increasing which means the prices are, as well.

He says it’s a good sign of a recovering economy. He believes the prices are only going to go up from here.  “The market inventory has gotten very tight. And as we tighten with our market. Prices go up,” said Joseph.

That means you’re going to pay a lot more now hat you would have a year ago.

“As of January the median sale price of saltwater homes, it’s $384,000. If you look back a year ago it was $310,000,” said Joseph. “As long as you believe that the sun is going to shine. People will return. The prices will continue to increase.  It’s a prime example of what’s happening right now.”

Paradise for sale. But paradise that comes at a premium. “We were just looking for the deal of the century before. Now, we’re looking for the deal. Hopefully that will work for us!” said Payne.

As for some advice for buyers, Joseph says make sure you do your research, and educate yourself before making that big purchase.

Click here to view the original article.

Westin Cape Coral Resort at Marina Village Main Pool
As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. If you found this article interesting and know someone else that might benefit from it please feel free to share!

Bob Ashworth

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Like me on Facebook    Follow me on Twitter    View my profile on LinkedIn    Visit my blog

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com
Like us on Facebook Follow us on Twitter View our profile on LinkedIn Visit our blog  Find us on Yelp

2014 – The Year to Buy!

Posted in Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, Buying Tips, Cape Coral, Cape Coral Real Estate, Cape Coral Real Estate Market, FL Real Estate Market Update, Florida Housing Market, Florida Real Estate, Florida Real Estate News, Fort Myers Real Estate, Home Tips, Housing Market Update, Lee County Homes, Real Estate Advice, Real Estate Investment, Real Estate Market, Real Estate News, SWFL Homes for Sale, SWFL Housing Update, SWFL Market News, SWFL Real Estate

Home Buying Tips

As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. Today I would like to share this article on why 2014 is the year for you to purchase a home in Southwest Florida if you haven’t already!

Why 2014 is a good year to buy a home

If you didn’t buy a home in 2013, you may be kicking yourself now. Home prices climbed nationally an average of 13.6 percent in the past 12 months, according to Tuesday’s release of the Standard & Poor’s/Case-Shiller 20-city home price index.

Don’t make the same mistake in 2014, suggests Benjamin Weinstock, real estate attorney and partner at the firm Ruskin Moscou Faltischek in Uniondale, N.Y.

Market forecasters predict that 2014 will be another year of gains for the real estate market, even though the rapid pace of sales in 2013 cooled off a bit at the end of the year. On Dec. 30, The National Association of Realtors said its pending home sales index, based on contracts signed last month, rose 0.2 percent in November, below the 1 percent rise forecast.

Home prices are expected to rise about 5 percent next year, says Weinstock. Higher mortgage rates will dampen the pace of both sales and price gains, but not bring them to a halt. The average rate on a 30-year fixed mortgage is expected to rise from 4.5 percent to 5 percent in the next year.

Even aside from expected price gains, buying a home is almost always a good investment in the long run, says Weinstock. Tax benefits are not to be overlooked.

“When one rents, at the end of the year he or she has a pile of 12 cancelled rent checks,” Weinstock says. “However, the homeowner has a pile of 12 cancelled mortgage checks that are nearly fully tax-deductible in most cases.”

Editor’s note: If you’re shopping, you may want to keep your eye out for the latest design trends in homes for 2014 while you’re at it. Click here to view original article.

Bob Ashworth

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Like me on Facebook    Follow me on Twitter    View my profile on LinkedIn    Visit my blog

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com
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10 Tips to Investing in Real Estate with your IRA

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, Buying Tips, FL Real Estate Market Update, Florida Real Estate, Fort Myers Real Estate, Investment Advice, IRA Investing Tips, IRA Real Estate Investment, Lee County Homes, Real Estate Advice, Real Estate Investment, Real Estate Market, Real Estate News, Realtor, SWFL Market News, SWFL News, SWFL Real Estate, SWFL Real Estate Investing

IRA Investing

10 tips for buying real estate with IRAs

NEW YORK – July 8, 2013 – Want to invest in real estate through a retirement account? It’s possible, but it’s also far more difficult than simply buying and selling investment property.

“Given the combination of bottomed-out home prices and a still-tight lending environment, utilizing funds from a retirement account to purchase investment homes with cash, or at least with a large down-payment, can give individual buyers a better chance of competing in this tight housing market,” says Daren Blomquist, vice president at RealtyTrac.

Blomquist says investing with retirement money “gives consumers a path to more quickly build their nest egg since all proceeds from the real estate investment – whether that be from rental cash flow or from selling the property – go directly back into the retirement account.”

However, he also says retirement investors should conduct thorough research first.

Real Estate InvestingLook before you leap

Retirement funds can be a good fit for some investors but it’s not for everyone. “It depends on the person’s age and the type of property,” says Sheldon Detrick, CEO of Prudential Alliance Realty in Oklahoma City, Okla. “Rental property, especially on the lower end, can be a good investment at any age. It’s usually profitable and easy to sell. On the other hand, buying land in outlying areas in anticipation of population growth is something only those under 50 should consider.”

Know the ground rules

Lorraine and Richard Walls, a couple in Midlothian, Va., decided to use their retirement accounts to buy investment properties in Southwest Florida. But before making the plunge, the Walls spent a full year researching how self-directed real estate IRAs work, learning the basic ground rules every investor should know before they get started. Those ground rules include:

  • Title: Any property purchased by an IRA is owned by the IRA – not an individual.
  • Purchase money: any money used to purchase a property with an IRA has to come directly from your IRA, not you individually, and you can’t be reimbursed by your IRA. This includes earnest money and closing.
  • Rehab and carrying costs: similar to purchase money, any costs associated with rehabbing or carrying the property must be paid directly by the IRA. An IRA custodian can help with this.
  • Income: any income generated from the property has to flow back into the IRA.
  • Prohibited transactions: purchases made with an IRA need to be for investment, not personal use. Also an IRA cannot do business with family members of “lineal descent,” which includes you, a spouse, parents, children, grandparents, grandchildren and great-grandchildren. In addition, you cannot borrow money from a self-directed IRA or use it as security for a loan.

Real Estate TaxesUse a Roth IRA to “pay taxes on the seed, not the crop”

According to Jeff Desich, chief executive of Equity Trust Company, choosing a Roth IRA over a traditional IRA is a “no brainer” for most real estate investors because although a traditional IRA allows for tax-free contributions, the earnings are taxed when pulled out for retirement down the road. “My dad would always say would you rather pay tax on the seed or on the crop,” Desich says.

Buy in your comfort zone

“We stuck to Lehigh (Acres, Fla.), which everyone said don’t do it,” says Lorraine Walls, adding that the couple now owns a total of nine properties in Lehigh Acres, one of the nation’s hardest-hit real estate markets. “I went with what I was comfortable with. We don’t need to make millions straight away.”

Plan your exit strategy but be flexible

Although she purchased the Lehigh Acres homes primarily for the long-term cash flow, Walls said steady gains in home price appreciation have her rethinking that strategy. “Actually, I’m thinking about selling because the prices have almost doubled in the last two years,” she said, noting that her real estate agent is urging her to list one home in particular. “I paid $58,000 for this property, and he wants to list it for about $105,000.”

Investment StrategiesConsider creative investing strategies

Early in his career, veteran real estate investor Stan Brady said he focused mostly on fix-and-flip properties that he sold to owner-occupant buyers. But his strategies have evolved over time to focus on optioning investment deals that he finds and negotiates for other investors who don’t have the time to find and negotiate those deals.

“A typical transaction for me would be taking an option contract … and then turn around and resell the property to a group of investors,” says the Atlanta-based investor. “Now they have a portfolio rental and I get back the profit in my IRA.”

Set up a 401(k) under real estate investing business

While a normal employer 401(k) plan won’t allow you to invest in real estate, everyone who invests in real estate is in business for themselves, Desich says, which gives him or her the right to have a retirement plan for that business. If someone is investing in real estate and finding success, then that person can set up a 401(k) that permits real estate investments and allows contributions up to $50,000 per year plus $50,000 for a spouse.

Make it a family affair and multiply your purchasing power

Investors have the option of partnering their IRA with others, according to Desich. For example, a husband and wife might each have a Roth IRA, and both may have a 401(k). Add in two kids who each might have a Roth IRA and the family can use all six accounts to purchase a deal and share the percentage.

Cash PurchasePay all cash or make a large down-payment to compete with institutional buyers

Besides the tax breaks that allow investors to build their retirement nest egg, self-directed IRAs give buyers the option of paying all cash or making a sizable down payment – helping to compete in a market where multiple bids are the norm.

“Offer a high deposit and close within two weeks,” Walls says is her rule of thumb. “Offer them 50 percent, and bingo you’ll get it.”

Build a strong team around you

“You want to choose your partners wisely,” says Desich. “Biggest point outside the IRA, we help to connect the dots. Whoever you use, you need to have an attorney or accountant you work with who can help you; or find a custodian who can help you answer questions. We’re not all created the same.”

Click here to view original article.

As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. If you found this article interesting and know someone else that might benefit from it please feel free to share!

Bob Ashworth Realtor SWFL

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Like me on Facebook    Follow me on Twitter    View my profile on LinkedIn    Visit my blog

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com
Like us on Facebook Follow us on Twitter View our profile on LinkedIn Visit our blog  Find us on Yelp

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Is it cheaper to Rent or Buy?

Posted in Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home in SWFL, Buying a Home SWFL, Buying Questions, FL Real Estate Market Update, Florida Real Estate, Fort Myers Real Estate, Homes for Sale SWFL, Lee County Homes, Real Estate Advice, Real Estate Investment, Real Estate Market, Real Estate News, Realtor, Rent Vs. Buy, Sell Your Home Now, Selling your Home, SWFL Home Sales, SWFL Home Selling Advice, SWFL Housing Update, SWFL Market News, SWFL News, SWFL Real Estate, SWFL Rentals

rent-vs-buy

Cheaper to own than rent regardless of mortgage rate

Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For home-ownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

Florida Real EstateIn the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. The include: 

  • Miami: 43% cheaper to buy
  • Fort Lauderdale: 53% cheaper to buy
  • West Palm Beach: 56% cheaper to buy
  • Cape Coral-Fort Myers: 45% cheaper to buy
  • North Port-Bradenton-Sarasota: 51% cheaper to buy
  • Lakeland-Winter Haven: 55% cheaper to buy
  • Palm Bay-Melbourne-Titusville: 50% cheaper to buy
  • Orlando: 51% cheaper to buy
  • Tampa-St. Petersburg: 55% cheaper to buy
  • Jacksonville: 54% cheaper to buy 

Individual own-versus-rent savings will vary depending on details, but Trulia posed an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

Rent vs Buy

As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. If you found this article interesting and know someone else that might benefit from it please feel free to share!

Bob Ashworth Realtor SWFL

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Sincerely,
Bob Ashworth
Your Real Estate Solutions Provider

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Florida’s Housing Market Growing Stronger!

Posted in Bob Ashworth, Bob Ashworth Realtor, Business Growth, Buying a Condo, Buying a Home, Buying a Home SWFL, Cape Coral News, Cape Coral Real Estate, Cape Coral Real Estate Market, FL Real Estate Market Update, Florida Real Estate, Fort Myers Real Estate, Homes for Sale SWFL, Real Estate Market, Real Estate News, SWFL Market News, SWFL News, SWFL Real Estate

SWFL Real Estate Trends

Top economists: Fla.’s housing market growing stronger, U.S. on same trend

ORLANDO, Fla. – Florida’s residential real estate market will continue its upward trend into 2013, though the pace of recovery may be slower than the U.S. as a whole, according to leading U.S. economists speaking today at Florida Realtors® 2013 Real Estate and Economic Forecast Conference in Orlando.

2013 Florida Housing Market“Florida’s housing market is back, with great possibilities for the future – but those possibilities are only beginning to be realized,” said Dr. John Tuccillo, chief economist for Florida Realtors.

Along with Tuccillo, conference speakers included Doug Duncan, senior vice president and chief economist for Fannie Mae; Leslie Appleton-Young, vice president and chief economist for the California Association of Realtors (CAR); and Pat Reass, a state-certified residential real estate appraiser at Appraisal Group MidFlorida LLC in Winter Haven.

Fannie Mae Chief Economist Doug Duncan said, “We believe the housing market is on firm footing. … Most of the improvement we’ve seen has come from the supply side of housing. Distressed properties are coming down from about 5 million to more like 3 million.”

Mortgage rates should remain low and not change much in 2013, he added, while banks likely will continue to maintain high lending standards and a tight credit environment.

Housing Market Florida“The trend has been established for the housing recovery, but robust growth awaits more jobs and a stronger economy,” Duncan said. “Three years into the recovery, the current economic expansion is the weakest since World War II. Just over half of the jobs lost in the Great Recession have been recovered.”

The real estate market “bottomed out in late 2008,” Tuccillo said, according to Florida Realtors’ market data, data from the National Association of Realtors (NAR) and other market research sources.

“Since the beginning of 2009, we’ve clearly seen a regrouping and a recovery underway,” he said.

Median sales prices are consistently rising for both existing single-family homes and condo-townhome units across Florida. However, he noted the state’s active distressed property (foreclosures and short sales) market is putting pressure on prices, resulting in smaller gains and a slower rate than what is being seen in California and the U.S. as a whole.

Real Estate TrendsOther signs of Florida’s steadily improving residential market, according to Tuccillo: 

  • Months’ supply of single-family homes is below 6 months
  • Latest data (October 2012) shows 44 percent of closed sales were paid in cash, signifying strong demand from investors
  • Foreign buyers make up 19 percent of closed sales in Florida (October 2012)
  • Traditional (non-distressed) sales now make up over 50 percent of Florida’s closed sales
  • Closed sales include fewer REOs (real estate-owned) and more short sales
  • Shadow inventory has been declining since 2009, though it remains a key factor in the state’s housing market going forward since Florida is a judicial foreclosure state (meaning foreclosures go through a court process)

Comparing Florida’s residential market to California’s and to the U.S. as a whole, CAR Chief Economist Leslie Appleton-Young agreed that the nationwide housing market is back.

“The latest NAR data shows very strong closed sales and rising prices,” she said. “Low inventory is currently a challenge for the nation, for California and also for Florida in many areas. There’s just not enough property for sale, particularly with investors buying properties for cash (29 percent of the market in California; 25 percent of the U.S. market). For California, we’re calling 2012 the return of the traditional seller to the marketplace – in October 2012, 63.4 percent of our total sales were from equity or traditional sales.”

In California, the current months’ supply of existing single-family homes is 3.1 months, Appleton-Young noted. While the state is still dealing with lender issues such as tight credit, problems are being resolved at a faster pace, she said, and home prices are rising as a result.

Looking ahead to 2013, Appleton-Young said, “There is a tremendous amount of pent-up demand for housing. The number of new units is improving, but it’s still low and isn’t enough to meet pent-up demand. The housing recovery is gaining strength, but the long-term viability of the market and its recovery depends on jobs.”

Rising Market SWFLWhere will Florida be in 2013? Assuming that the national fiscal problems are not resolved but are “postponed,” Tuccillo said he expects employment in the state to grow by 10 percent in 2013; residential sales to increase by 10 percent; prices (same sales index) to rise by 5 percent; commercial activity to revive; and inventory to grow as the market improves.

“I think the improvement in the market and rising prices will bring more potential sellers back into the market,” he said. “Signs point to a better year in 2013.”

Click here to read original article.

As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. If you found this article interesting and know someone else that might benefit from it please feel free to share!

SWFL Real Estate

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Like me on Facebook    Follow me on Twitter    View my profile on LinkedIn    Visit my blog

Bob Ashworth Remax Realty Team

Bob Ashworth
Realtor, CBR, CDPE
Your Real Estate Solutions Provider
239-425-2503
2326 Del Prado Blvd. S.
Cape Coral, FL 33990
Bob.Ashworth@gmail.com
www.BobAshworth.com
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Can Real Estate Help Pay for Your Retirement?

Posted in Bob Ashworth, Bob Ashworth Realtor, Buying a Condo, Buying a Home, Buying a Home SWFL, Florida Real Estate, Fort Myers Real Estate, Lee County Homes, Real Estate Advice, Real Estate Investment, Realtor, Selling your Home, SWFL Home Sales, SWFL Home Selling Advice, SWFL Housing Update, SWFL News, SWFL Real Estate

real-estate-investment

Let Real Estate Help Pay for Retirement 

With rock-bottom interest rates and post-housing bubble prices, the idea of buying a second home as a rental property may appeal to baby boomers looking to fortify their retirement finances.

Investors, however, need to do their homework and thoroughly think through the decision to buy a second home, which may be less lucrative than it might seem at first blush and, like any investment, is not without risk.Rental housing certainly promises a potentially better return than savings accounts and other fixed-income assets, and an alternative for those weary, or wary, of the stock market.

Real Estate Investments SWFL“Buying a second home for income is not for everyone. It’s the epitome of ‘undiversified.’ There are many risks and to the uneducated investor, it’s probably best to avoid the lure of high returns,” said certified financial planner Rick Kahler, president of Kahler Financial Group in Rapid City, S.D.

If the goal is supplementing cash flow, the house should be “free and clear” of any mortgage — unless the investors plan to eventually live there themselves — as there is rarely any cash flow from a mortgaged home, according to Kahler, who has been buying investment properties himself for 30 years.

“If one is to take the plunge, be sure to get some education in the business of buying and renting houses. Yes, it is a business. There is nothing passive about managing real estate,” he said. “I have seen more disasters of people who have gone into the rental business without proper preparation.”

Financial planners and real estate agents are seeing, at least anecdotally, notable interest in real estate now, given low fixed-income yields and a decline in housing prices as much as 50 percent from pre-recession peaks in some areas. A feeling that the economy is stabilizing may be giving buyers a push as well.

Mortgage Rates SWFLMortgage applications for second homes and investment properties, however, have held fairly steady for the past four years at 6 percent and 5.5 percent, respectively, according to Mike Fratantoni, vice president of research at the Mortgage Bankers Association and executive director of MBA’s Research Institute for Housing America.

He noted, though, that those statistics relate only to mortgage applications and may not fully reflect what’s happening in the market, since a quarter of existing home sales are paid with cash.

Home prices nationally are down some 20 percent from their peaks and are starting to rise now, so for those considering buying a second home, he said, this might be a good time, especially since “mortgage rates are about as low as they’ve ever been.”

Certified financial planner Greg Plechner, principal and wealth manager at Modera Wealth Management in Westwood, N.J., has seen more client interest lately in investing in rental property. (Read more: Structuring you portfolio.)

short sale informationThe broad market is offering investors a chance to buy low and sell high, he said, noting that stocks and bonds have risen dramatically since 2007, while one could argue that real estate remains on sale.“I think that there are good values to be found. That’s not to say that we’re at the bottom of the housing market,” but clients see rental property as an attractive source of investment yield, given the low rates of return on safe bonds, certificates of deposit and cash, Plechner said.

Financial planners warn, however, that many investors don’t take into account the expenses, burdens and potential pitfalls of owning investment real estate.

While Kahler and some of his clients own investment properties, he said he generally discourages people from buying them. Investors won’t get income from a mortgaged investment property, especially, a single-family home, he said; people should figure that expenses will eat up 50 percent of the rent.

The scenario may be different for those who plan to move into that second home someday, or to use the house for six months a year. In that case, Kahler said, “to buy that home and rent it out is a great thing to do because obviously the tenant is paying the mortgage for you.”

As for expenses, investment homeowners may need to replace the water heater, roof, gutters and underground oil tank, repaint the house and resurface the driveway. They’ll have a second set of utility, tax and insurance bills. (Read More: Is Your House Underinsured?)

“An investment property has as many demands as your residence does,” Plechner said, adding that renters won’t take as good care of it as the owner would.

Investors will either have to hire a property management company to respond to tenants’ calls, or will have to devote significant time acting as landlord and handling problems themselves.

Investors also need to be careful about not overestimating rental income. When people run the numbers, they often figure the home will be occupied all the time, but there may be many months without tenants, Kahler and Plechner noted. People expecting a 6 percent to 8 percent yield may really see only 4 percent, Plechner said.

Kahler estimates that real estate comprises half of his own net worth. He just paid off his real estate investments in August, meeting his goal of being clear of the mortgages in the year he turned 57½.

In Kahler’s part of the country, typical rental income is about 6 percent of the property’s value, but expenses can cut that yield to 3 percent.

“You’ve got to do the numbers and say, ‘Does this make sense?’” Kahler said.

A real estate investment trust, on the other hand, can provide investors with a 6.5 percent yield, without all the expenses and personal time involved in a single investment property.

“For most people,” Kahler said, “they would be better off buying a REIT than they would be a specific home.”

— Dinah Wisenberg Brin

My pledge to you as a home, land or condo buyer is to work with you to identify your wants and needs, and then work to fit those within your budget. I will never try to sell you a property, I will help you buy one; the one that is right for you and your budget.

We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for SaleMoving Resources, or even Mortgage Information everything you need is right here.

We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.

Sincerely,
Bob Ashworth