Are you the publisher? Claim or contact us about this channel


Embed this content in your HTML

Search

Report adult content:

click to rate:

Account: (login)

More Channels


Showcase


Channel Catalog


Channel Description:

The latest news on Real Estate from Business Insider

older | 1 | .... | 62 | 63 | (Page 64) | 65 | 66 | .... | 132 | newer

    0 0

    small house

    You might ask yourself if it's smart to own your own home after you retire.

    While I think real estate can be a great investment while you are in the accumulation phase of your life, I think it can sometimes be a horrible thing to hold on to once you retire.

    Let's look at a simplified illustration to make the point. Assume Patty Rich is 65 and retired. Her only asset is her home, which is free and clear — she has no mortgage. And her only income comes from Social Security and pension.

    Here's what her financial statements look like:

    Screen Shot 2015 08 27 at 11.08.08 AM

    As you can see, even though Patty doesn't have a mortgage, it still costs her $1,200 a month to hold on to her property. Many people are very surprised to see what the real costs of owning property actually are. In any event, Patty still has $1,800 after housing expense to live on.

    Let's look at her neighbor Ann, who was in a very similar situation except she sold her home and became a renter:

    Screen Shot 2015 08 27 at 11.10.50 AM

    You can see that Ann's rent is higher than what it cost Patty to maintain her home. So what? Ann's net income is almost 50% greater (jumping from $1,800 to more than $2,600 a month) because she has investment income and that more than makes up for the higher rent she pays. As a result, Ann gets to take a huge trip every year to a wonderful location. Don't worry, she'll send her friend Patty a very nice postcard.

    Does this mean you should never own real estate no matter what?

    No, it does not. Real estate can be a wonderful investment, as I said. For young families it can be great because it acts like a forced savings vehicle and it provides appreciation potential. The thing is, there is time when growth is the most important goal and there are other times (such as during retirement) when income is more important.

    If you have enough income once you retire and are doing everything you really want to do, maybe this move isn't for you. So owning or renting may not matter if you are rolling in the dough.

    But look at Patty. She's got a house and that's great, but she may not have enough money to really enjoy her retirement. She's spending too much on maintenance and security, repairs, taxes, and insurance etc.  The list goes on and on. If owning that house gives her more pleasure than traveling or doing other activities, then that's fine. But if she'd rather be living it up like Ann, the house may be more of a burden than a benefit.

    I looked at the numbers and decided that renting is a better financial move once my youngest leaves the nest.

     

    SEE ALSO: 10 questions you should be able to answer about your money

    Join the conversation about this story »


    0 0

    The co-founder of everyone's favorite dating site, OKCupid, has just scooped up a sweet townhouse at 925 Lorimer Street in Greenpoint, according to property records just released. 

    Christian Rudder — now a budding musician and father — was listed alongside his Bishop Allen bandmate Michael Tapper (also of We Are Scientists fame) on the sale.

    The home, which is described as “3,400 square feet of endless opportunities” is sure to offer the pair and their friends a "typical Friday night" that’s anything by typical.

    christian rudder housechristian rudder house

    The massive home is currently set up as a multi-family residence with three units, but the listing notes that it can easily be converted into a single- or two- family home. In addition to plenty of pre-war details, there are soaring ceilings and tall windows that bathe the spaces in light.

    A private yard spanning 850-square-feet with south and west exposures holds court in the back of the home.

    christian rudder houseRudder is one of four of OKCupid’s founders, which include Chris Coyne, Sam Yagan, and Max Krohn. The foursome sold the dating site to Match.com back in 2011 for $50 million in cash.

    Rudder is now married and has a three-year-old girl named Plum.

    christian rudder housechristian rudder house

    Join the conversation about this story »

    NOW WATCH: This Swedish house was designed by 2 million people — and it is surprisingly attractive


    0 0

    Couple Homeowners

    For many, buying a home represents a rite of passage in life.

    Most of us strive for it, and most American households do own their homes. However, today more people are choosing renting over buying, and the home ownership rate in the United States has actually fallen “to the lowest in more than 19 years,” according to Bloomberg.

    Owning a home is costlier than you might imagine — one reason many millennials are holding off on the homeowner path.

    So before you meet with a real estate agent, consider these five costs homeowners pay that renters don’t. They could make you question whether you’re really ready for homeownership.

    Property taxes

    In 2013, Americans spent an average of $2,132 on property taxes on their homes. You can estimate your property taxes in advance by dividing the amount by 12 and adding it to your estimated monthly payment. You should be able to find this information in your potential home’s MLS information, too.

    mortgage calculator can also help you estimate your property tax costs.

    Homeowners insurance

    Homeowner’s insurance costs an average of $35 per month for every $100,000 of your home’s value. Or if you intend to purchase a condo, you’ll need a condo insurance policy — separate from traditional homeowner’s insurance — which costs an average of $100 to $400 a year.

    Maintenance repairs

    The remodeled home of your dreams might pass your home inspection with flying colors, but that doesn’t mean those renovations will last forever. Conventional water heaters last about a decade, with a new one costing you between $500 to $1,500 on average. Air conditioning units don’t typically last much longer than 15 years, and an asphalt shingle roof won’t serve you too well after 20 years.

    And don’t forget about those small repairs that you won’t be calling a landlord about anymore. Did your fridge water filter light come on? Notice a tear in your window screen? Can’t get your toilet to stop running? What about those burned out light bulbs in your hallway? You get the idea.

    Owning a home means you (should have) planned beyond the down payment — you’ve considered your typical annual maintenance expenses, too. U.S. News & World Report advises planning on spending “between 1 to 4 percent of a home’s value annually on maintenance and repairs.”

    Of course, this amount increases as your home ages.

    small house

    HOA fees

    Sure, that monthly mortgage payment seems affordable, but don’t forget to take into account homeowners’ association (HOA) fees. On average, HOA fees cost anywhere from $200 to $400 per month and pay for perks like your fitness center, neighborhood landscaping, community pool, and other common areas. While renters’ garage, gym, and pool access are usually covered in their rent, when you own your home you’re paying for these luxuries beyond your mortgage payment.

    Utilities

    When you’re renting, it’s common for your apartment or landlord to cover some costs. When you own your home, you’re in charge of covering it all—water, electric, gas, Internet, and cable.

    The cost of your utilities when living in an apartment is quite different than what you’ll pay if you own your home. And while many factors play a role when estimating how much you’ll pay for utilities — like the size of your home and the climate you live in — the most recent Bureau of Labor Statistics’ report on Consumer Expenditures (published April 2015) found that homeowners on average pay $321.75 per month or $3,861 per year for “Utilities, Fuels, and Public Services.”

    SEE ALSO: Here's the salary you have to earn to buy a home in 17 major US cities

    Join the conversation about this story »


    0 0

    Great Exuma Villa

    If you're planning a tropical getaway with a large group, it may make sense to find a beach house to rent. 

    If you can afford the upgrade, however, a private island makes for an infinitely more luxurious vacation. 

    Our friends at vacation rental site HomeAway helped us curate a list of five private islands you can rent right now.

    From a Bahamian island where you can dine on white sandy beaches to a cottage for two in the Virgin Islands, these islands beat an ordinary beach house any day. 

    SEE ALSO: Here's the $11 million private island 'Shark Tank' star Barbara Corcoran is rumored to be buying

    FOLLOW US: Business Insider is on Instagram

    Renting at $124,000 a night, Calivigny Island in Grenada has 25 suites and cottages that can accommodate up to 30 people.

    Click here for the listing »



    French-inspired furnishings fill the elaborate residences, and each of the 15 bedrooms is equipped with a king-sized bed.

    Click here for the listing »



    There's plenty of living space, like this room with a hot tub, plus an air-conditioned gym and a wine cellar.

    Click here for the listing »



    See the rest of the story at Business Insider

    NOW WATCH: New aerial footage shows aftermath of explosion in China


    0 0

    Tracey Morgan House

    Tracy Morgan just took another step on his long road to recovery.

    He just purchased a new mansion in Alpine, New Jersey — a small town along the Hudson River across from New York — for $13.9 million.

    He will share it with his new wife, Megan Wollover, who he married this August.

    Dennis M McCormack of Prominent Properties handled the listing.

    SEE ALSO: The 15 most expensive houses for sale in America

    DON'T FORGET: Follow Business Insider's lifestyle page on Facebook!

    Here's the impressive façade of Morgan's newly bought New Jersey mansion.



    The grandeur continues as you enter the foyer, which is enormous, and features meticulous detailing on the walls and ceilings.



    A room this big demands two chandeliers.



    See the rest of the story at Business Insider

    NOW WATCH: New aerial footage shows aftermath of explosion in China


    0 0

    tesla house

    After multiple price chops in more than a year on the market, a Mediterranean-style mansion in San Francisco's Telegraph Hill neighborhood has finally sold for $9.98 million, according to Curbed SF.

    It first listed for $16 million in May 2014, property records show. The price dropped to $14.89 million in October, then to $13 million in February before falling even further to $11 million in May. 

    With lots of Italian-inspired art throughout, the house is beautiful, but its detached garage and motor court is what makes it truly unique.

    According to the listing, it comes with its very own Tesla charging station, though there's no word on whether the car is part of the package. 

    Hopefully the new owner already has a Tesla. 

    SEE ALSO: Netflix exec Ted Sarandos is selling his $9.3 million storybook mansion in Beverly Hills

    The Villa de Martini sits on a triple-wide lot on the top of Telegraph Hill.



    It dates back to 1929 and was reportedly the first building in the city to be built using concrete.



    Here's a look at the detached garage, where you'll find a Tesla charging station already built in.



    See the rest of the story at Business Insider

    0 0

    tesla house

    After multiple price chops in more than a year on the market, a Mediterranean-style mansion in San Francisco's Telegraph Hill neighborhood has finally sold for $9.98 million, according to Curbed SF.

    It first listed for $16 million in May 2014, property records show. The price dropped to $14.89 million in October, then to $13 million in February before falling even further to $11 million in May. 

    With lots of Italian-inspired art throughout, the house is beautiful, but its detached garage and motor court is what makes it truly unique.

    According to the listing, it comes with its very own Tesla charging station, though there's no word on whether the car is part of the package. 

    Hopefully the new owner already has a Tesla. 

    SEE ALSO: Netflix exec Ted Sarandos is selling his $9.3 million storybook mansion in Beverly Hills

    The Villa de Martini sits on a triple-wide lot on the top of Telegraph Hill.



    It dates back to 1929 and was reportedly the first building in the city to be built using concrete.



    Here's a look at the detached garage, where you'll find a Tesla charging station already built in.



    See the rest of the story at Business Insider

    0 0

    Babe Ruth's Upper West Side Apartment

    Babe Ruth’s former Upper West Side home can be yours for $1.6 million, according to broker Douglas Elliman.

    The two-bedroom, three-bathroom co-op apartment at 345 W. 88th St. has been on the market since April.

    The apartment, built in 1913, features hardwood floors, a stainless steel refrigerator and mirrored doors, according to the listing.

    The Great Bambino lived in the home toward the end of his career with the New York Yankees.

    His 98-year-old daughter, Julia Ruth Stevens, told the the New York Post she remembered listening to "The Green Hornet" on the radio in the apartment while looking over Riverside Park.

    “Mom and Dad loved to entertain there," Stevens told the Post. “We had a maid and cook, and Dad would always invite Yankees who had been traded and were in town with other teams. He knew they wanted a home-cooked meal [while on the road].”

    The family lived in the nine-floor prewar building from 1929 to 1940.

    They had the entire seventh floor before it was subdivided into two apartments.

    The building also has a part-time doorman, bike room and storage bins, and sits less than a block from Riverside Drive.

    The $1.595 million price tag does not include monthly maintenance fees of $2,864, the listing noted.

    Babe Ruth's Upper West Side ApartmentBabe Ruth's Upper West Side ApartmentBabe Ruth's Upper West Side Apartment

    SEE ALSO: This $135 million mansion could shatter real estate records in Beverly Hills

    DON'T FORGET: Follow Business Insider's Lifestyle page on Facebook!

    Join the conversation about this story »

    NOW WATCH: 11 stunning aerial photos that will change the way you see the world


    0 0

    neil young hawaii house

    Neil Young is selling his slice of Hawaiian paradise.

    He just listed his lush Hawaiian estate on the Big Island for $24.5 million.

    Located on the western side of the island known as the Kohala Coast, the property sits on a three-acre peninsula surrounded by the Waialea Bay.

    A five-bedroom main house promises plentiful verandas and outdoor space to gaze and gape at the 830 feet of pristine tropical coastline and turquoise waters.

    In addition to dual guest houses — each with two bedrooms — the grounds also feature two greenhouses and a pool house.

    The land is a veritable farm, complete with a vegetable garden and fruit trees growing every kind of tropical fruit you can imagine (think: lemons, papaya, pomelo, mango). The estate is even recognized by the Honolulu Garden Club for its variety of coconut trees.

    Young hasn't stated why he's selling the property, but in his 2012 book, "Waging Heavy Peace: A Hippie Dream," he described it as "soothing" and claimed it had "magical healing powers."

    neil young hawaii houseneil young hawaii houseneil young hawaii house

    SEE ALSO: Comedian Tracy Morgan just bought this $14 million New Jersey mansion to share with his new wife

    DON'T FORGET: Follow Business Insider's lifestyle page on Facebook!

    Join the conversation about this story »

    NOW WATCH: This Swedish house was designed by 2 million people — and it is surprisingly attractive


    0 0

    HomelessIf you're looking to buy a house in Britain, the near future, you might want to get a move on. Prices in the UK are on the cusp of soaring again. 

    The record low number of properties for sale has coincided with rising demand, according to a note from Barclays. This will potentially double the rate at which prices rise in the next six months.

    Here are the main points:

    • Surveyors are reporting less stock. According to the Royal Institution of Chartered Surveyors, 22% more of its surveyors saw supply to the market fall in July.
    • Buyer enquiries are rising. This supply shortage comes at a time when buyer enquiries have risen for the fourth consecutive month, with 25% of respondents reporting an increase in demand.
    • House price inflation has been around 4% in the past six months, which implies that prices could rise by up to 9% in the next six months, an acceleration of the current rate of inflation. 

    If you think house prices are high now, bear in mind they're still below their peak:

    barclays house prices

    The data on price inflation comes from the RICS survey, which canvasses opinion on where house prices are going in the next six months.

    Here's the chart from Barclays:Barclays house

     

    While it might be bad news for first-time buyers, it's great for the house builders. Barclays estimates every 1% increase in house price inflation adds around 1% on to profit margins at building companies.

    There is a question of how long something like this can be sustained, especially in London where house prices to earnings are already at their highest level in more than 30 years.

    Another nice chart shows this spike:

    Barclays HPER

     

    Join the conversation about this story »

    NOW WATCH: 50 Cent testifies his lifestyle is an illusion


    0 0

    charleston houses street

    If you’re thinking about buying a home, you may need less money than you think.

    Here’s how to figure out the amount of cash you need to buy a home, and what you can do to buy a home using as little money down as possible.

    Contrary to popular belief, you don’t need 20% down. The minimum down payment you need to buy a home is 3.5% down with an FHA loan on a 30-year fixed-rate mortgage. This 3.5% down payment is a factor of the home price on a loan size up to the high-balance FHA county loan limit — which in most places is $417,000.

    However, it can be higher depending on the area. For example, in Sonoma County, Calif., it’s up to $520,950, and in some higher-cost areas, such as Marin County or San Francisco County, that number goes up to $625,500 for a single-family residence.

    Alternatively, on a conventional loan you need only a 5% down payment on up to a $417,000 loan size. Should your loan size exceed $417,000, another 5% down payment kicks in, for a total of 10% down needed all the way to the maximum conforming loan limit in your county.

    What to expect when buying with little money down

    First, if you’re buying a home with less money down, know that your mortgage payment will be higher than if you put more down. The three drivers that inflate a mortgage payment are: interest rate, larger loan size, and private mortgage insurance.

    You should have manageable monthly debts— including credit cards, car loans, and any form of payment obligations — in relation to your income. Your income will need to be high enough to include the proposed mortgage payment for the purchase price you are seeking, as well as being able to cover your other debt payments.

    The down payment percentages are important to know, though it is significantly easier to work with the monies you have or have access to, than to get wrapped around the axle about down payment percentages. Make no mistake, the mortgage company can work this calculation out for you very easily, or you can do it yourself. You can take the amount of money you have and divide that number by the purchase prices in your area to determine the exact dollar percentage.

    Let’s say you have $30,000 to spend on buying a home and you know that housing prices in your area are $450,000. That means you have a 6.7% down payment, enough for an FHA Loan. If your loan professional asks you how much money you have to spend on buying a home in terms of your own funds and possible gift funds, the answer should be some sort of dollar amount, not “How much do I need?”

    The reason is this: How much you’ll need to buy a home is going to be predicated on the purchase price of the property and is a continual variable until you get into contract. Start with the monies you have. Assuming you have $30,000 to spend on a $450,000 home example, closing costs on a $450,000 home will easily equate to $10,000, so of the $30,000, $10,000 would come right off the top for closing costs leaving you with $20,000 as a down payment, still meeting the cash to close requirements on an FHA loan.

    house backyard pool

    No-money-down options

    • The VA loan program allows for no-money-down, 100% financing, for U.S. military veterans only.
    • The USDA loan program also allows for no-money-down, 100% financing, as long as you are purchasing a home in a rural area and you meet the USDA’s annual low-income thresholds.

    Other sources of money

    Alternatively, gift monies can be used to purchase a home. Typically, lenders like gift monies to come from a blood relative, but check with your lender for specifics. Here are additional funds that can be used for the acquisition of a home, though they each come with their own individual downsides and may not be a good fit for you. Consider all of your options:

    • Stocks, bonds, IRA and 401(k) monies can be pulled from these accounts to purchase a home, usually with special provisions.
    • Gift money, as long as it can be documented in some form of a bank account can also be used, along with an executed gift letter.
    • Selling of personal property — a boat or a motorcycle, for example, can be used for a down payment and/or closing costs — documented with a bill of sale and paper trailing of the funds.
    • A security deposit refund on you current rental obligation can also be used, but needs to be planned for on the front end so as to properly communicate timeframe expectations with your landlord.
    • Tax return refund.
    • Cash can be used as long as the funds have been seasoned in some form of a bank account for the past 60 days.

    small house

    If want to buy a home or want to get on the path of doing so in the future, here are some steps to consider to help meet this goal:

    1. Identify what monies you have in the bank now, and from what sources.
    2. Next, get “read” on what housing prices are like in your area, through online research or connecting with a good local real estate agent
    3. Take the amount of cash you have and divide that figure by an estimated sales price range in your area so you can get a feel for how much cash you will need to purchase XYZ home. Closing costs become another crucial factor, but the main goal is determining if you have enough cash to play with. Based upon these action steps, talking with a mortgage lender about getting qualified or how much money you’ll need to save in the longer-term picture can be a prudent step in making your future home purchase a success.

    Another factor that can affect how much home you can afford is your credit score, because that is a major factor in determining your interest rate. Checking your credit at least several months in advance of starting the home buying process can show you where you stand and help you consider whether you should take steps to improve your credit in the coming months. You can get your credit reports for free once a year from AnnualCreditReport.com, and there are many ways to get your credit scores for free, including through Credit.com.

    More from Credit.com

    SEE ALSO: 5 expenses homeowners pay that renters don't

    Join the conversation about this story »


    0 0

    9505 Lania lane house of the day

    When real estate mogul Jeff Greene listed his Beverly Hills mansion in November 2014 for $195 million, it was the most expensive home for sale in the US.

    Later, he decided to try and rent it $475,000 a month.

    After nearly a year, it seems Greene is tired of hanging on to the property and is chopping the price by $46 million.

    Called "Palazzo di Amore," Greene's home was built for parties. It has an entertainment complex and ballroom, a private-label vineyard, and parking garages for more than two dozen cars. According to a statement, the house was "eight years of hard work" and Greene is selling it because the East Coast is now his base of operations.

    "It is, quite simply, impossible to recreate and one of a kind,” Greene said in the statement.

    With its new $149 million asking price, the home is still the most expensive public listing in America. Greene made a fortune when the real estate bubble burst in Greece and is worth about $3.2 billion, according to Forbes.

    Joyce Rey and Stacy Gottula of Coldwell Banker Previews International have the listing.

    Julie Zeveloff contributed to an earlier version of this post. 

    SEE ALSO: The 15 most expensive houses for sale in America

    DON'T FORGET: Follow Business Insider's lifestyle page on Facebook!

    The Palazzo di Amore is not your ordinary mansion. It's a true party palace, with space to entertain 1,000 guests.



    Visitors pass through three sets of gates before arriving at the grand home. The two-story entry has a pair of curved marble staircases.



    The 15,000-square-foot "entertainment complex" is what sets this home apart. It has a ballroom with a revolving floor and can host 250 for a seated dinner.

     

     



    See the rest of the story at Business Insider

    0 0

    zuckerberg townhouse

    A townhouse in New York City's West Village has just sold for a whopping $22.3 million, and rumors are swirling that the mysterious buyer is either billionaire Facebook CEO Mark Zuckerberg or his sister, Randi Zuckerberg. 

    According to property records first spotted by the New York Observer, the sale was closed under the title "12th Street Townhouse LLC," and the deed was signed by Tom van Loben Sels, a partner at San Francisco-based Apercen Partners LLC.

    Van Loben Sels has worked with the Zuckerbergs on several occasions.

    He registered a separate LLC when Mark purchased his Palo Alto home in 2011, and he worked on the sale of Randi's Los Altos home earlier this year, according to the Observer. 

    He also helped Mark refinance his mortgage in 2012. 

    It seems more likely that Randi is the buyer behind the LLC, given that her Silicon Valley home just sold for $6.55 million, and she had been rumored to be mulling a move to New York. 

    Mark, who recently announced he and his wife Priscilla are expecting their first child, could certainly afford that steep price tag, too. It's also entirely possible that van Loben Sels is working with another high-profile client in this instance. 

    There aren't too many details available about the house itself, as it was never publicly listed. It has 3,200 square feet of space situated over three levels. It was built in 1899 and previously belonged to Michael Stewart of UBS. Stewart purchased the townhouse for $3.4 million in 2004. 

    Van Loben Sels did not immediately return a request for comment. 

    SEE ALSO: Randi Zuckerberg sold her boldly decorated Los Altos home for $6.55 million

    Join the conversation about this story »

    NOW WATCH: The exercise habits that 12 tech titans use to stay in shape


    0 0

    Fire Lookout 2

    Retired couple Alan Colley and Dabney Tompkins have chosen a rather unconventional location for their next home.

    After stumbling upon a book about the US Forest Service, Colley and Tompkins were inspired to move into a fire lookout, a 40-foot tower that was historically used to spot forest fires.

    "It was a magical moment that the book sort of fell off the shelf to us," Colley told Zillow. "We called the ranger district and said why don’t we rent this thing? That was the beginning."

    After renting a few fire lookouts, they decided to purchase land on Summit Prairie in Oregon, where they would build their own tower from the ground up. At that point, the couple had already downsized from a Dallas estate to a 1,400-square-foot home in Portland.

    What started as a weekend getaway eventually turned into a permanent residence.

    "We decided to be totally irresponsible and quit our jobs and move here," Tompkins said to Zillow.

    Living in a fire lookout — which, by the way, has no indoor bathroom — came with an interesting set of challenges.

    SEE ALSO: 9 enormous log cabins that have all the luxuries of a modern mansion

    FOLLOW US: Business Insider is on Instagram

    Lookouts were used to spot forest fires from the early 20th century up until the 1960s, when they were replaced by satellites. To this day, very few fire lookouts remain standing.



    Colley and Tompkins spent a few years camping around the area before settling on their property. In 2010, their getaway turned home was completed.



    The fire lookout sits on 160 acres on land, much of which is a meadow. As they rise above the tree line, they boast 360-degree views of the land.



    See the rest of the story at Business Insider

    NOW WATCH: Hugh Hefner's son reveals what it was like growing up in the Playboy Mansion


    0 0

    HomelessIf you're looking to buy a house in Britain, the near future, you might want to get a move on. Prices in the UK are on the cusp of soaring again. 

    The record low number of properties for sale has coincided with rising demand, according to a note from Barclays. This will potentially double the rate at which prices rise in the next six months.

    Here are the main points:

    • Surveyors are reporting less stock. According to the Royal Institution of Chartered Surveyors, 22% more of its surveyors saw supply to the market fall in July.
    • Buyer enquiries are rising. This supply shortage comes at a time when buyer enquiries have risen for the fourth consecutive month, with 25% of respondents reporting an increase in demand.
    • House price inflation has been around 4% in the past six months, which implies that prices could rise by up to 9% in the next six months, an acceleration of the current rate of inflation. 

    If you think house prices are high now, bear in mind they're still below their peak:

    barclays house prices

    The data on price inflation comes from the RICS survey, which canvasses opinion on where house prices are going in the next six months.

    Here's the chart from Barclays:Barclays house

     

    While it might be bad news for first-time buyers, it's great for the house builders. Barclays estimates every 1% increase in house price inflation adds around 1% on to profit margins at building companies.

    There is a question of how long something like this can be sustained, especially in London where house prices to earnings are already at their highest level in more than 30 years.

    Another nice chart shows this spike:

    Barclays HPER

     

    Join the conversation about this story »

    NOW WATCH: 50 Cent testifies his lifestyle is an illusion


    0 0

    house florida

    Raise your hand if you’ve found yourself running the following dialogue loop in your head when trying to decide if you’re really (really) ready to buy a house.

    1. Homeownership is a never-ending time and money suck.

    2. But renting is like throwing your money down the drain.

    3. And, hey, you’re young! Why tie yourself down with a house?

    4. But other people your age own homes — shouldn’t you own a home by now?

    (And repeat.)

    Stop the one-sided, one-way conversation in your head and read these pros and cons of buying a house to decide what’s right for you.

    Pro: Ability to customize

    Hate the chintzy cabinets in your kitchen? Dying to turn that laminate countertop into a solid piece of granite? As a renter, you have limited ability to customize your surroundings. As a homeowner, you can make your home your canvas. Paint the walls, knock down a wall, create your dream kitchen — no one can tell you what you can or cannot do to your home. No one but your homeowners’ association, that is.

    Pro: Freedom to live how you want

    Want to foster dogs, own five cats, and have tunnels for your gerbils to navigate through your rooms? Go for it. Want to host a cookout on your deck? Start up the grill.

    As a renter, you’re subject to your landlord’s rules about pets, outdoor spaces, and other lifestyle choices. As an owner, you can do almost anything, as long as it’s legal and you don’t disturb the neighbors.

    Pro: Financial perks 

    Owning a home can help you build equity. You can also write off mortgage interest at tax time, get tax credits for certain improvements (such as energy-efficient windows), and turn your unused rooms into rental units for extra income.

    Pro: Fixed monthly payments 

    As long as you’re on a fixed-rate mortgage, your mortgage payments will remain steady (although in some cases, they could go up). But long term, as inflation kicks in, you’ll repay your mortgage in cheaper dollars over time.

    If you’re a tenant, unless you live in a rent-controlled area, your landlord can increase your rent anytime your lease is up for renewal. And if your lease is month-to-month, your landlord could legally raise the rent every 30 days.

    Still not sure which is the better decision financially? Try Trulia’s rent vs. buy calculator to get an objective second opinion.

    small house front door

    Con: Less flexibility

    If your circumstances or preferences change, you no longer have the flexibility to move quickly. As a renter, if you lose your job, realize you hate your neighborhood, or decide to move in with your significant other, you can move as soon as your lease expires (or plunk down whatever cash is necessary for an early lease termination).

    If you own a home, by contrast, you’ll have to endure extensive additional expenses, hassle, and stress to sell (or rent out) your home before you can move to your next spot.

    Con: Limited access to amenities

    When you move to a house, you may not be able to access top-quality amenities you were used to as a renter. You may be saying goodbye to that on-site gym and swimming pool and the valet trash service.

    Con: More responsibility

    As soon as a home is in your name, the maintenance and repair hassles are now your responsibility. That leaky faucet will no longer be magically fixed for you while you’re at work, and you’ll have to start making time to mow the lawn in the summer and shovel snow in the winter.

    Con: More financial pressure 

    Owning a home is a long-term financial responsibility. If you’re a renter and you’re hit with a financial hardship, you can move into a less-expensive rental. As a homeowner, you’re stuck with your mortgage (or you can try a refinance). If the idea of paying a mortgage for 15 to 30 years makes you hyperventilate, you’re probably not ready for homeownership.

    houses cold spring new york

    Con: Costly surprises

    As a homeowner, you face a lot of potentially expensive surprises, such as a roof that suddenly starts leaking or a sump pump that fails and lets your basement flood. As a renter, your biggest potential surprise expense is a rent hike when your lease is up for renewal — and if you don’t like the proposed rent increase, you can negotiate or move.

    So how do you know if you’re really ready to buy?

    In addition to the lifestyle factors listed above, take the time to thoughtfully answer these five questions.

    1. Where do you see yourself in three to five years?
    2. How long do you plan on living in the same town?
    3. How stable is your job?
    4. Can you afford a home you can “grow into” in the next decade?
    5. Are you prepared to sink a large amount of money into purchasing and maintaining a home, or do you have other financial goals you’d rather focus on?

    SEE ALSO: How to buy a house without a 20% down payment

    Join the conversation about this story »


    0 0

    Ken Griffin

    Ken Griffin is reportedly considering spending more than $200 million on several properties in New York City's "billionaire's bunker."

    The founder of hedge fund Citadel is in talks to buy several properties at New York luxury development 220 Central Park South, according to Page Six's Emily Smith.

    The plan is to combine the apartments into one single property, according to the report.

    The potential purchase would make the property one of the most expensive — if not the most expensive — New York City apartment in history.

    The purchase comes amid Griffin's divorce from his wife of 11 years, Anne Dias-Griffin, who has requested $1 million a month in child support for their two children. The two have also been at war over their homes in New York, Aspen, Chicago, Hawaii, and Miami, according to Page Six.

    Read the full article at Page Six.

    SEE ALSO: 10 Most expensive homes for sale in New York City right now

    Join the conversation about this story »

    NOW WATCH: More trouble for Subway's Jared Fogle...


    0 0

    San Francisco island

    According to reports, the only private island in San Francisco Bay just got a huge price cut. 

    Red Rock Island — six acres of rocky, uninhabited land sitting between San Quentin and Point Richmond, California — is visible from the Richmond-San Rafael Bridge, which connects the two.

    On the market since 2012, the island has gone from $22 million to $10 million to the rock-bottom price of $5 million — a definite steal by San Francisco real estate standards.

    According to the listing, the completely raw and undeveloped island has "myriad possibilities for tourism development, preservation as a natural sanctuary, mineral extraction site, or just as your highly unique personal retreat." 

    Though mostly rock and dirt, Red Rock Island is not without history. Its previous monikers include "Golden Rock" and "Treasure Island," according to the San Francisco Chronicle, and it's name is often associated with legends of pirates and buried treasure (though no treasure has ever been found there).  

    Its current owners, a retired local real estate investor and a former San Francisco lawyer, wanted to turn the island into a 20-story hotel, casino, and yacht harbor in the 1960s, according to the Chronicle. Their plans were dashed by a public outcry, however. Since then, many offers have come and gone, but the island has remained.

    Red Rock Island

    SEE ALSO: The 15 most expensive houses for sale in America

    DON'T FORGET: Follow Business Insider's lifestyle Facebook page!

    Join the conversation about this story »

    NOW WATCH: This abandoned Chinese island shows what the world might look like without humans


    0 0

    southampton hamptons

    The housing crisis and ensuing recession are long over, but that doesn't mean it makes more sense to buy a home than it does to rent one.

    Existing home sales increased between June and July, with July sales 10.3% higher than they were just a year earlier, according to the National Association of Realtors. However, the $234,000 average price of those houses is starting is starting to price out some first-time buyers. Interest rates on a 30-year fixed-rate mortgage that have held around 4% haven't helped, nor has a supply of houses that has decreased nearly 5% from a year ago.

    "Despite the strong growth in sales since this spring, declining affordability could begin to slowly dampen demand," says Lawrence Yun. "Realtors in some markets reported slower foot traffic in July in part because of low inventory and concerns about the continued rise in home prices without commensurate income gains."

    As real estate data site RealtyTrac notes, those home prices are making it increasingly easier to rent property than to own it. In 2012, 65% of the population lived in counties where it was more affordable to buy or rent. That shrunk to 58% in favor of buying in 2013, 56% last year and just 54% as of July. The National Association of Realtors is well aware of this, as the percentage of first-time buyers declined in July for the second consecutive month, falling from 30% in June to 28%. A year ago, first-time buyers represented 29% of all buyers.

    "The fact that first-time buyers represented a lower share of the market compared to a year ago even though sales are considerably higher is indicative of the challenges many young adults continue to face," Yun says. "Rising rents and flat wage growth make it difficult for many to save for a downpayment, and the dearth of supply in affordable price ranges is limiting their options."

    portland oregonKeep in mind that existing home sales make up roughly 90% of the market, so event when the Department of Housing and Urban Development (HUD) notes that the sale of newly built homes rose 25.8% in July from the same point in 2014, that's still little more than 500,000 homes — at a more costly average sale price of $361,000. Not only is that a speck on the overall housing map, but it's actually driving up sale prices.

    In the 285 U.S. counties RealtyTrac and HUD analyzed, 97 (34%) are more affordable for renters seeking a three-bedroom home than they are for homebuyers seeking the same. That's still the minority, but that's up from 80 rent-friendly counties just three years ago. That also includes counties where, just a year ago, it was cheaper to buy than it was to rent. If you're in Sacramento County, California; San Joaquin County, California in the Stockton metro area; Lancaster County, Pennsylvania; Spokane County, Washington; Polk County, Iowa in the Des Moines metro area; Reno, Nevada; Sarasota, Florida; Jacksonville, Florida or St. Louis, Missouri, you likely shouldn't have waited a year to buy a home.

    With some help from RealtyTrac and HUD, we came up with just ten examples of cities where you'll be spending more of your income financing a home than you ever would renting it. If you're in it for the long haul, that's likely not of great concern, but if you're tight on cash now and aren't sure if you should lay down roots, consider renewing your lease in these towns:

    SEE ALSO: How to buy a house without a 20% down payment

    San Francisco, California

    Average percent of income needed to buy: 139.3%

    Average percent of income needed to rent: 48.8%

    We're not saying anything anyone in the Bay Area doesn't know.

    Alameda (64.3% to buy, 39.4% to rent), San Mateo (94.1%, 44.7%), Santa Clara (66.7%, 35.4%), Santa Cruz (74.1%, 41.6%) Marin (76.9%, 39.6%) Sonoma (60.7%, 42.5%) — from wine country to the boardwalk, the real estate comes at a premium.

    If you want affordability, you have to go inland, which makes Vallejo (35.4% to buy, 34.4% to rent), Modesto (32.2%, 36.6%) or Merced (28.1%, 31.8%) about the only places you'll make out better as a homeowner.



    Seattle, Washington

    Average percent of income needed to buy: 45.3%

    Average percent of income needed to rent: 38.1%

    Seattle is nobody's undiscovered country.

    A steady hot streak that's seen Microsoft, Starbucks and Amazon blow through and bring a whole lot of jobs with them has made even the greener portions of eastern King County ripe for the picking. It's also made it tough to find motivation to buy rather than rent.

    Think you'll get a better deal in Bremerton? The 33.7% of your income you'll surrender to own is lower than King County but still higher than the 30.8% it costs to rent. Want to move closer to the San Juan Island ferry in Anacortes? The 35.6% hit for buyers is still higher than the 31.7% cut for sellers.

    Our recommendation? Nestle in among the farms and antique stores in Snohomish, where the 35.4% of income you'll have to put towards a house beats the 39% you'll pay in the area's scant rentals.



    Suffolk County, New York

    Average percent of income needed to buy: 38.4%

    Average percent of income needed to rent: 32.2%

    Let's keep in mind that, according to the Census Bureau, the median household income in Suffolk County is $88,000, compared to just $52,000 for the rest of the US and $58,000 for New York State.

    Potential buyers have a lot more income to put toward houses that sell for an average of $430,000, but they're also leveraging a lot more on those deals than their renter counterparts.

    However, it isn't as if the New York Metropolitan Area is teeming with deals for homebuyers. In fact, you have to go across the sound to New Haven, Connecticut, to find a place where buying a home (with 29.8% of one's income) beats renting (with 33.2%).

    Not a big fan of Yale or pizza? Good luck hoofing it to Easton, Pennsylvania.



    See the rest of the story at Business Insider

    0 0

    foggy houses neighborhood

    Affording your home and paying your mortgage are important factors of financial wellness for any homeowner.

    In the years between 2007 and 2011, Americans experienced one of the worst housing crises in our nation’s history.

    While the overall housing market has mostly recovered, we can still learn something about the whole process.

    The basics

    To spot a housing recovery, you must first identify a housing crisis. This means anywhere that experiences a significant decline in home prices. You can then look at home prices in the area regularly and take note when prices return to or go beyond their pre-crisis numbers.

    Other signs of housing recovery include rising interest rates, a declining number of foreclosures, and a more equal mix between buyers and sellers in the marketplace. This signifies that the number of houses available matches demand and the prices are relatively stable. This means both existing-home and new-home sales.

    Recovery can be especially clear when single-family home construction exceeds the rate of multifamily building, which provides jobs and helps inventory levels rise in markets that need it. Our housing recovery began in 2012 and reports put the end of the recovery (and therefore return to normal) when the ratio of housing wealth to GDP normalizes, fewer buyers pay cash, and price-to-rent ratios as well as homeownership return to near their long-term average.

    The stars

    During this housing recovery, some local markets are doing better than others. SmartAsset looked at data from the Federal Housing Finance Agency and the National Association of Realtors on home prices in 100 of America’s largest metro areas to find which recovered most strongly. Only those that experienced a decline of at least 10% were considered.

    The analysis found that Southern cities are bouncing back better overall, and some places in California, such as San Francisco, are actually experiencing a boom. Some cities — such as Nashville; Columbus, Ohio; and New Orleans — have maintained affordability through recovery.

    new orleans

    The impact

    Understanding what a housing recovery is and how to spot one is important, but knowing how these things affect you personally is even more vital. It can help you be more prepared for the future.

    Obviously, if you are in the market to sell your home when prices suddenly decline, you will probably not get the price you once expected. You can still try to sell and accept a loss or wait until you start to see recovery signs. If you are hoping to buy a new home in a crisis, this can be great, but you should be wary of where you buy. You want to purchase a property in an area that will likely experience a strong recovery.

    You can make the best case for yourself with buyers by getting pre-approved for a mortgage, which requires a good credit score in most cases, some down payment money and other financial details your mortgage lender and real estate agent can help walk you through. You can check your credit scores for free on Credit.com to see where you stand.

    If you are already a homeowner during a housing crisis and you can’t afford your current mortgage or your home value slips below your mortgage balance during a housing crisis, you can look into refinancing options. However, if you are trying to get a new mortgage during recovery, look out for rising rates and pickier lenders.

    More from Credit.com

    SEE ALSO: 10 parts of the US where it's smarter to rent a home than buy one

    Join the conversation about this story »


older | 1 | .... | 62 | 63 | (Page 64) | 65 | 66 | .... | 132 | newer