To Pay Rent Or Not To Pay Rent in Yonkers

People are delaying the decision to buy a home because they are not sure where prices are headed. If they buy and prices continue to soften, they feel that they will not have purchased at the optimal moment. They reason that, if they sit and wait, they can’t be hurt. This thinking assumes that a non-decision comes without consequence.

The normal response to this thinking by people who are bullish on real estate is that prices may soon turn to the positive or that interest rates will start heading upward. Buy now before the cost of buying increases! Today, we want to look at this from a different angle. We want to alert our readers that their housing expense is about to increase if they continue to rent.

Currently, in most parts of the country, buying is less expensive than renting, especially when considering New York real estate. Plus, purchasers can lock in their housing expense for the next thirty years by buying now. They will get a sensational price and a record low interest rate. What will happen if they continue to rent?

The Alternative to Buying

If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically. But today’s rental market favors the landlord to a greater degree. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.

Bottom Line

Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. Feel free to confer with our team of  real estate experts to determine the best option for you and your family.

The Sales Team of Rummy Dhanoa

www. FreeNYHomeSearch.com

www.RummyRealEstate.com

How Not To Pay Rent in Westchester!

People are delaying the decision to buy a home because they are not sure where prices are headed. If they buy and prices continue to soften, they feel that they will not have purchased at the optimal moment. They reason that, if they sit and wait, they can’t be hurt. This thinking assumes that a non-decision comes without consequence.

The normal response to this thinking by people who are bullish on real estate is that prices may soon turn to the positive or that interest rates will start heading upward. Buy now before the cost of buying increases! Today, we want to look at this from a different angle. We want to alert our readers that their housing expense is about to increase if they continue to rent.

Currently, in most parts of the country, buying is less expensive than renting, especially when considering New York real estate. Plus, purchasers can lock in their housing expense for the next thirty years by buying now. They will get a sensational price and a record low interest rate. What will happen if they continue to rent?

The Alternative to Buying

If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically. But today’s rental market favors the landlord to a greater degree. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.

Bottom Line

Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. Feel free to confer with our team of  real estate experts to determine the best option for you and your family.

The Sales Team of Rummy Dhanoa

www. FreeNYHomeSearch.com

www.RummyRealEstate.com

10 Surprising Reasons You Can’t Get a Home in Westchester!!

Getting a home signifies financial security and an investment for the future. Owning a home is part of the American Dream. There are some surprising reasons why you can’t get a home.

1.       Down Payment – You may have the required 10%-25% of the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.

2.       Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.

3.       Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.

4.       Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.

5.       Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.

6.      Inspection– In Westchester County more and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.

7.       Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.

8.      Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.

9.       History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.

10.   The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.

If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.

~The Sales Team of Rummy Dhanoa

www.FreeNYHomeSearch.com

wwwRummyRealEstate.com

THE SALES TEAM OF RUMMY DHANOA WOULD LIKE TO INVITE YOU TO OUR INVESTOR'S WORKSHOP:

                                                                     Video: http://youtu.be/nwSW_seVvAk

PLEASE R.S.V.P. BY JANUARY 21ST - SEATING IS LIMITED

CALL 914-902-3252 or go to www.RealEstateWorkshop.Info

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Yonkers DHB Issues Heat Hotline
and Heating Regulations for Winter Season
Posted Date: 1/9/2012
YONKERS, NY - JANUARY 9, 2012 - The City of Yonkers Department of Housing and Buildings announced today its annual heat complaint hotline and heating regulations for the season for all tenant-occupied residential buildings.

The City has set up a Heat Emergency telephone number, receiving calls 24-hours a day, seven days a week, for City Housing residences (apartments, two and three family housed dwellings), at 914-965-3331. The Yonkers Housing and Buildings Department also is fielding calls at 914-965-3331 Mondays through Fridays from 8:30 AM to 4:30 PM (calls received after 4:30 PM will be addressed the following business day).

Additionally, the Department mandates during the period from September 15th to May 31st, that every person, firm or corporation in the City of Yonkers is required to maintain a temperature of no less than 68°F (20°C) in all habitable rooms, bathrooms and toilet rooms. At all other times whenever the outside temperature falls below 55° the inside temperature is to be supplied as follows:

Between 6:00 AM and 11:00 PM 68°F
Between 11:00PM and 6:00AM 65°F

Note: Hot water is to be maintained at a minimum temperature of 120°F at all times.

All heating regulations are instituted by the City of Yonkers Housing and Buildings Maintenance Code, Chapter 58-22 Heat Regulations.

From you Real estate Expert call us for your real estate Needs

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914.438.8830

The Following is The Market Trend for The 10710 Area of Yonkers Over the past 6 Months. As you can see the average list price for properties still on the market is $515,943. The average list price for properties sold was $480,566. The average sold price was $454,915. 94.7% of homes listed were sold. 

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One of the key drivers of homes sales, the employment rate, is beginning to show promising signs of a turnaround. The four-week average for jobless claims, as of November 19, was 394,250, a drop of 3,250 from the previous four weeks, and at the lowest levels since April. Consumer confidence also rose 15 points in the last month, and is now at its highest point since July of this year. Eric Green, Chief Market Economist at TD Securities Inc. said, “The trend remains very constructive. Jobless claims are back below 400,000, which seems to be the pivot point in terms of a strengthening labor market as opposed to a weakening one.”

In addition to improving employment conditions, home affordability also improved as interest rates fell further, opening the door for more first-time home buyers who accounted for 34% of the sales in October, an increase from 32% last month and last year. The western United States saw the greatest increase in home sales, which were up 4.4% month to month and up over 15% from last year.
A strengthening job market, along with encouraging signs from the housing sector, including a 10% jump in pending sales for October, are strong economic forces. While mortgage lending still remains a challenge, these forces may send a signal to banks to relax lending regulations and allow for a more rapid recovery.

Home Sales(in millions):

Existing homes sales improved 1.4% in October, or to an annual pace of 4.97 million, a 13.5% increase from October of last year. Even more dramatic, was the jump in pending home sales, which surged in October by 10.4% from September, and were up 9.2% from October 2010. This jump in pending sales could lead to a strong fourth quarter as signs continue to point to a pent-up demand brought on by current lending conditions of
mortgage providers.



Home Price(in thousands):

The national median home price in the U.S. saw a small decline in October to $162,500, from $165,800 in September. This number can be affected by the sale of distressed properties, which typically sell at discounted prices. Distressed properties accounted for 28% of homes sales in October. Yet despite a drop in the median price from last September, the Federal Housing Finance Authority reported that seasonally adjusted prices rose 0.2% in the third quarter from the second quarter in 2011, which could be an early sign of appreciating home prices.



Inventory- Month’s Supply(in months):

By the end of October, the total number of homes on the market had fallen 2.2% to 3.33 million homes, which represents 8 months of inventory at the current sales pace. Since a record high of 4.58 million homes in July 2008, the inventory of homes for sale has been steadily declining. When homes sell faster than they come on the market, the market comes from its current favor toward buyers into balance or in favor of sellers. This can trigger an appreciation in home prices and lead the way to a stronger recovery.



Source: National Association of Realtors
Interest Rates:

Mortgage rates continue to push lower, dropping to 3.98% from 4.23% in October of 2010, offering historic affordability to today’s home buyers. While mortgage lending conditions continue to be a challenge, more and more people are seeing the advantage of buying a home sooner rather than later. Lawrence Yun, NAR chief economist, said, “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this indicates more buyers are taking advantage of the excellent affordability conditions.”

The Sales Team of Rummy Dhanoa would like to wish everyone a Happy, Healthy and Prosperous New Year!

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This year here are some resolutions that will help you not drop the ball on protecting you or your family.

2012 resolutions:

1. Don’t be a distracted driver - Many vehicle crashes are avoidable if people would just pay closer attention to what they are doing and to what is going on around them. Inattentive driving accounts for thousands of fatalities and houndreds of thousands of injuries. Distractions typically include talking, eating, grooming, attending to children, watching a video, reading, adjusting a navigation system and using a cell phone.
2. Keep your home warm – The temperature in your house should be at least 65 degrees to prevent pipes from freezing. Winter storms are the third-largest cause of catastrophe losses, resulting in about $1 billion in insured losses annually. The average water damage and freezing claim is over $5,000.
3. Protect your home – Each year billions of dollars are paid out in homeowners insurance claims, with residential theft averaging over $1,800 in losses per burglary. Keep your yard well lit and put indoor lights on a timer. If you’re going on vacation, have mail and packages picked up and ask a neighbor to keep an eye on things. Before the trip, invest in an alarm system — it’ll keep your house safe and could earn you a discount on your coverage.
4. Check your coverage – Homeowners spend billions on additions, alterations, maintenance and repairs each year. Review your insurance coverage to include improvements, major purchases and increased rebuilding costs. If a new addition or gazebo, for example, is destroyed or damaged before you increase your coverage, then you may be responsible for the cost of repairing or rebuilding the addition. If you rent and don’t have renters insurance, talk to your agent as soon as possible.
5. Test the detectors – You’ve heard it before, but many families simply forget to test their smoke detectors. Make sure yours is in working order with new batteries and that one is installed on every floor and in every bedroom. Test them regularly. Also make sure that your home is equipped with at least one working carbon monoxide detector (Check local regulations to sure you are in compliance). Properly working carbon monoxide detectors can help protect you and your family by providing an early warning before the deadly gas builds up to a dangerous level.

Have a Happy and Healthy New Year!

The Sales Team of Rummy Dhanoa

www.FreeNYHomeSearch.com

www.RummyRealEstate.com

****Give a Holiday Gift Voucher Instead****

I know lots of landlords who think it is a good will gesture to deliver a turkey or a bottle or cookies for the Holidays to their tenants. However we are finding it is not a good idea to get in the habit of giving gifts to tenants.
Many of you know what we mean. Tenants normally think they deserve the gifts you give them. Then they expect them each year. What if you don't give a gift to your tenant after you gave him something the previous year? There may be hard feelings on the tenant's part. After all, they feel it is their hard earned rent money that you are using to buy their gift along with all the other comforts you enjoy in life.

So, if you must reward your tenant for paying the rent as agreed, why not make it worth your while too? Let the tenant earn your gift by paying the rent early.

See Below:

Dear Tenant,

As an excellent tenant, your landlord has selected you to receive a special rent reduction opportunity:

$ Holiday Discount Voucher $

  This voucher entitles

______________________________

to $__________________ off the rent payment on the rental located at ________________________________________________________

in exchange for early payment of rent. (See details below)

A discount is offered to the tenant as an incentive to pay rent before it's due date. If rent is received by 5:00 P.M. ________ days before it's due date or sooner, the tenant may deduct $_________ making the payment $_____________. Payment shall only be deemed made as of the date received by the Owner or his agent, and not by the postmark on the envelope.

This special offer is granted to the tenant for the months of

_________________20 ___ to _________________20 ___

Authorized by ______________________  Date _________

PF37 Early Payment Discount Voucher www.theLPA.com

The Sales Team of Rummy Dhanoa

Keller Williams Realty Group

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