Kerstin Brooks's Blog

Smart Homebuyers are focusing on taking advantage of favorable rates along with the Tax Credit

Kerstin Brooks (Brooks & Heinze Team at Skyline Properties - Seattle, WA) — Fri, 15 Jan 2010 17:23:52 -0800

Smart home buyers are focusing on taking advantage of the present, very favorable rate situation along with the still available tax credit.

Rates are likely to go up:

Please note that the main reason interest rates are so low is because the government is buying mortgage backed securities, or you may have heard the term "toxic assets", which are basically sub-prime loans or loans that required no proof of income, allowed low credit scores and were generally 0% down.

After you get a loan through your bank or mortgage broker, the loans are sold to Fannie Mae and Freddie Mac and then those 2 entities package them up to sell them to investors. After the sub-prime meltdown no investors wanted them and so to keep Freddie Mac and Fannie Mae afloat, we, as taxpayers, bought them for essentially the "list price" even though they were not worth anything.

Even now, because interest rates are so low, private investors are not interested in mortgage backed securities (even though most of the loans now have a stringent qualification process) and so we, as taxpayers, are still buying them (and probably over-paying the banks).

In December (on the 24th, while most of the country was spending time at home with their family for the holidays) the Treasury announced there was to be no limit on what the government spent to bail out Freddie Mac and Fannie Mae. The prior limit was 400 Billion. This is a good article to explain what that means (besides we are all getting ripped off and our children, children's children and so on will suffer). http://www.huffingtonpost.com/dean-baker/fannie-mae-and-freddie-ma_b_405117.html .

So, when the government decides to start stepping out of the big business welfare role, interest rates will go up and I presume that will happen in 2010 sometime. So, what happens when interest rates increase? Buyer's qualify for less money and it impacts the housing market because buyers can afford less.

Tax Credit for First-time Buyers and Move-up Buyers scheduled to expire April 30, 2010.

In order to qualify for the credit, all home purchase contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

More about these tax credits can be learned in one of our prior posts from November 8, 2009 entitled "First Time Homebuyer Tax Credit Extended" and "A New Tax Credit for Certain Existing Home Owners".

A great way to learn more about the above topics or decide if becoming a homeowner is right for you, please contact us or attend one of our home buyer workshops:

UPCOMING HOME BUYER WORKSHOPS

Date:	Thursday, January 28, 2010
Time:	6:30pm - 7:30pm
Location:	Northgate (Seattle) - 9709 3rd Ave NE #450, Seattle, WA 98115

Topics covered:
Loan Application Process, First-time Homebuyer Tax Credit, Market Conditions, Own vs. Rent Illustration, Home Buying Process, For Sale by Owner (FSBO), bank-owned, short-sale properties, Q & A. RSVP to Kerstin at 206.276.5827 or info@propertyinseattle.com

Krisanne Heinze & Kerstin G. Brooks

Brooks & Heinze Team

Home Maintenance – or how to protect your biggest investment

Kerstin Brooks (Brooks & Heinze Team at Skyline Properties - Seattle, WA) — Wed, 03 Sep 2008 22:17:50 -0700

Many homeowners wonder when to schedule home maintenance. Some of you, the do-it -yourselfers take great pride in doing the maintenance yourself or only calling a contractor in on the big jobs. Some of you busy moms and professionals would rather have someone else do it quickly and right the first time. Either way is fine - just do it or have it done.

Following is a brief outline of some of the most common home maintenance jobs and repairs, as well as a guide on how to select contractors should you decide to hire one.

The old adage of "an ounce of prevention is worth a pound of cure" rings true for home maintenance. Simple and relatively inexpensive regular maintenance can help avoid many extensive and expensive problems.

Home maintenance by season:

Fall Maintenance
Clean and repair gutters. Recaulk exteriors around windows and doors. Fill all other holes and gaps. Remove debris and moss from the roof. Keep debris away from the home such as leaves, plants, wood, etc. Replace your furnace filter and have your furnace serviced. Late fall/early winter freeze proof your exterior plumbing.

Winter Maintenance
Recaulk and regrout in tubs/shower and sinks. Check seals on dishwasher/washer. Check dishwasher/washer hoses for leaks. Check dryer hose and vent for lint blockage. Check for leaks in your attic, basement and your water heater.

Spring Maintenance
Clean and repair gutters. Remove debris and moss from roof. Replace damaged roof shingles. Repair torn screens and check siding. Power wash walkways and drive ways. Power wash and restain decks and check for rot/insects. Late spring/early summer cut back trees and shrubs hanging over or touching the home.

Summer Maintenance
Check exterior paint and sand/repaint as necessary.

How to select a contractor:

Get a referral from your real estate agent. One way to retain or increase property value is by doing the proper maintenance and sometimes upgrades - your real estate agent knows all about that and most likely, if she/he is a good agent, she/he knows which companies do a great job when it comes to maintenance, repair and remodel.

If you are looking for a contractor in the Seattle area, contact Kerstin G. Brooks or Krisanne Heinze of the Brooks & Heinze Team at RE/MAX NW Realtors for a referral to a roofer, electrician, plumber, handyman, power washer, cleaner, and more.

Have a great day,
Kerstin G. Brooks
The Brooks & Heinze Team
206.276.5827
Email: info@propertyinseattle.com
Web: www.propertyinseattle.com

What's going on in the Seattle housing market?

Kerstin Brooks (Brooks & Heinze Team at Skyline Properties - Seattle, WA) — Mon, 07 Jul 2008 14:32:34 -0700

So, what's going on in the Seattle market? If you live in Seattle but listen to the national news, all you hear is about how the housing market is in the toilet. Yes, the housing market has slowed in Seattle over the last year but not as much as the national average (not by a long shot).

Well, there are a couple of things going on in Seattle that make this still a healthy real estate market. Of course, our market has slowed down and the changes in the mortgage industry, high fuel and food prices, credit crisis, sub-prime delinquencies, etc. are to blame for that. But our employment market is great and it is keeping our real estate market in good shape.

The good news is that Microsoft and Boeing are doing well and are adding jobs in the information services and manufacturing sector. The unemployment rate in the Seattle-Bellevue-Everett area has remained low at 4.1% in May (lower than the national 5.5% rate). Source: Bureau of Labor Statistics: http://www.bls.gov/news.release/archives/laus_06202008.htm

The U.S. Census Bureau estimates that there will be a 8.7% change in population in the U.S. between the years 2010 - 2020 and a change of 13.6% change in Washington State during the same period. The projected change in the U.S. between 2000 - 2030 is 29.2% and 46.3% change in Washington State during the same period. Source: U.S. Census Bureau: http://www.census.gov/population/projections/PressTab7.xls

Where are all these people going to live? In apartments, houses and condos, of course. If these projections are correct, there will be an increased need for housing in Washington, which should bode well for real estate values. Some areas are showing a projected decline in population, such as D. C., North Dakota and West Virginia.

In short, Seattle is affected by the national economy and prices have dropped which is great for buyers who can take advantage of some great deals. How long will it be a buyer's market? Who knows ... for a while longer; but the great employment opportunities, good income, population growth and limited availability of buildable land (due to geography and environmental protection laws) make for a strong housing market that is good now and will be fantastic in the future.

So, buy a house in Seattle!

Retire in Mexico - enjoy the sun and lower cost of living

Kerstin Brooks (Brooks & Heinze Team at Skyline Properties - Seattle, WA) — Tue, 13 May 2008 16:29:18 -0700

The Mexican Real Estate Market is really booming; especially Baja California Sur, in and near La Paz, Todos Santos and Loreto; Playa del Carmen, Puerto Vallarta and other areas. The reason for this is because there is a limited amount of affordable and attractive beachfront left in the US, leaving folks who are looking for their own place in the sun without opportunities.

Opportunities also extend to some non-beachfront properties, f.e. in towns where there is a shortage of in-town, long-term rental properties such as in Puerto Vallarta. It's not just the sunshine that lures people but the recreational activities, such as diving, kayaking, boating, wildlife, scenery, etc. and proximity to the U.S. and Canada .

With rising health care costs and a rapidly rising cost of living in the US and Canada and with real estate prices leveling of dropping off, many investors and retirees are looking to Mexico for a better investment and affordable way to continue or improve their lifestyle. Baby boomers and investors in the United States and Canada are looking for their second home or retirement home in Mexico. Most areas can be easily reached with many airlines competing for business.

Investors and retirees should be excited because it is still affordable. There is a lot you need to know about hot to buy real estate down there. It's a bit like the wild west and you have to be careful who you are working with down there. The person advertising and listing a property might not be the right person to work with. I think there are great opportunities for appreciating property down there but as with any investment, do your due diligence and research; and work with professionals who know what they are doing and who will represent your best interest.

Brooks & Heinze Team
Remax NW Realtors
300 NE 97th St
Seattle, WA 98115
206.528.4471
www.propertysalesmexico.com