OC Realty Blog

With Home Prices Dropping, In Many Areas It Is Cheaper to Own Than Rent

Posted on April 19, 2012 by JoJo Leave a comment

The good news about the housing bust is that home prices are now more affordable. It is now cheaper to buy versus renting in many areas.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

“At the peak of the real estate bubble, cities like Miami, Phoenix and Las Vegas were not affordable for many. Now the opposite is true,” said Pete Flint, co-founder and CEO of Trulia.com.

“Home sellers in these hard hit areas are forced to lower their prices to compete with all the foreclosures on the market. As a result , these unattainable markets are so affordable it makes better financial sense to buy than rent.”

Here is how to calculate whether it will be cheaper for you to buy versus rent.

First, add up what you are paying for rent now. Add together your rent payment and what you pay for renter’s insurance. That is the monthly cost of renting.

Now, let’s add up the cost of home ownership. First, you have the monthly mortgage payment. Add in Home Insurance, Property Taxes, and any Homeowner’s Association Fees.

Now, subtract out the tax savings. To calculate that, take what you will be paying monthly for interest and property taxes. Multiply that by your combined state and federal tax rate.

That is your projected tax savings. Now you have the cost of homeownership and renting side by side to compare. This is good news if you are a home owner. Why? It means that we are closer to a real estate recovery.

Are you or someone you know looking to purchase a home? I will work to help you get the best deal. Send me an e-mail for a list of the 10 best deals in today’s market.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at jojo@harmonhomesrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (949) 244-0719

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our 1 loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, JoJo Harmon.

JoJo is a Real Estate Broker Associate at Realty ONE Group. 1 Short Sales Realtor:

Phone: (949) 244-0719. jojo@harmonhomesrealty.com.

Call Me – I’ll Help You Make the Right Move!

View My homes for sale at www.HarmonHomesRealty.com.

JoJo Harmon specializes in loan modification assistance and short sales in Laguna Niguel California. Laguna Niguel Loan Modification Help, Laguna Niguel Short Sales. Laguna Niguel Short Sale Realtor 1 CA Short Sales. 1 Realtor.

Important Notice

JoJo Harmon, Realty ONE Group, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender.

Should I Short Sale My Home or Rent It?

Posted on April 18, 2012 by JoJo Leave a comment

The Stop Foreclosure Institute recently received a question from Sergio. Here was his question.

“I have owned my house since 2006. My employer reduced my salary by 30% and now I have to move out of state where I have found a new job.

The house is a problem. Since 2006 my house price has dropped by about $40,000. That means I have a $40,000 deficiency, which I don’t want to pay.

I have option to rent the house, but I am still considering a short sale. Any advice? Sergio.”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was our answer to Sergio’s Question: Sergio, I would attempt a short sale. Depending on your situation and the type of loan you have, more than likely you will not have a deficiency.

I can give you a better answer after I get more information from you. I wouldn’t recommend renting the house. How hard is it going to be to manage when you are out of state?

What if the tenants stop paying? What if a pipe breaks and floods the house? I’m not saying don’t rent the house. I just know from past experience that managing rental property from a distance is super tough.

I knew a real estate investor who targeted what he called “tired, out of town landlords.” He would offer to buy their property below market.

Surprisingly, many of them accepted his lowball offers because they were so tired of dealing with the property. Here is the other downside on renting.

You will probably have negative cash flow every month. I don’t know what your house will rent for. But, if you are upside down on your house value, then you are likely also upside down on the rental value.

That means you will almost certainly lose money on the rent every month. With your precarious financial situation, recent 30% salary cut, and move out of state, the last thing you need is another bill each month.

With a short sale you can walk away owing nothing, with no tax liability, and be eligible to buy another house in 3 years.

That sounds a lot better to me than being stuck with a money losing house 2 years from now. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at jojo@harmonhomesrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (949) 244-0719

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our 1 loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, JoJo Harmon.

JoJo is a Real Estate Broker Associate at Realty ONE Group. 1 Short Sales Realtor:

Phone: (949) 244-0719. jojo@harmonhomesrealty.com.

Call Me – I’ll Help You Make the Right Move!

View My homes for sale at www.HarmonHomesRealty.com.

Important Notice

Selling Real Estate, Short Sales Laguna Niguel Real Estate, loan modificaiton assistance, orange county real estate, Short Sale Help

Pros & Cons Of Buying Rental Property

Posted on April 16, 2012 by JoJo Leave a comment

The Pros of Rental Property.

The tenant pays your mortgage payment. You won’t make a lot
of money while you have a mortgage. But, where else can you have someone buy and pay off something for you?

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

You start to make real money after the mortgage is paid off. In addition, some properties are so cheap that the rent will pay offa 15 year mortgage. So in 15 years you have a free house.

Rentals are a great hedge against inflation. Notice how gas prices are going up again? The prices of everything else increase with gas prices. Food, clothes, electricity, and everything else goes up.

That means your house will go up in value over the long term. But, you locked in the price when you bought it when prices were lower.

I don’t want to make it seem like rental properties are a no brainer. There are some risks involved. No one should buy a rental property unless they are prepared and understand the risks.

The Cons of Rental Property

Problem #1: Leaky toilets. This is the first thing you should be aware of. We have seen that most problems are not emergency problems.

Many landlords work around these problems by hiring good help in the beginning. They find a good handy man and negotiate on the price before he does any work.

Problem #2: Management. You can find a good property management company to handle everything for you. But, you still have to manage the management company.

If you do not have extra time to manage problems, then rental property is probably not for you. Some people like this buy larger properties and hire better managers.

They meet with their manager once a month and let them handle everything. This works for them because they bought a larger property with better numbers. That extra money can be used to pay a better, more competent manager.

Problem #3: Collecting Rent. This is where many people mess up. You have to be persistent and firm. If you are a sympathetic person, and prone to give people a “break, then rental property is not for you.

Problem #4: Evictions. This is the bad side of the rental business. Most evictions occur because you didn’t pre-screen a tenant well enough.

You must budget enough so that you can afford an eviction when it happens. An eviction will cost you 2-3 months of rent. That is why you must have a rainy day fund for situations like this.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at jojo@harmonhomesrealty.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (949) 244-0719

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our 1 loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, JoJo Harmon.

JoJo is a Real Estate Broker Associate at Realty ONE Group. 1 Short Sales Realtor:

Phone: (949) 244-0719. jojo@harmonhomesrealty.com.

Call Me – I’ll Help You Make the Right Move!

View My homes for sale at www.HarmonHomesRealty.com.

Important Notice

Buying Real Estate Laguna Niguel Real Estate, orange county real estate