House or Condo: Which is the Better Investment?

Although houses historically appreciate better than condos, occasionally the reverse happens.  It's really a case of supply and demand, driven by demographics.

Typically, condos appeal most to the youngest and oldest segments of the population.

But keep in mind, one of the downsides of condo ownership is that you have limited control over the expenses you'll pay in common with other owners through homeowner association fees and assessments.  You have no control over insurance costs, and special assessments an association management company may impose to replace a roof or upgrade landscaping, and with a single-family home, you control these things.

As the owner of a single family home, you definitely have more control over your expenses, at the very least, giving you an opportunity to shop around for the best prices on things relative to your investment.

To determine whether a house or condo is best for you, talk to us.  We'll help you decide what's right for your particular situation.

When is the Right Time to Buy Roswell Real Estate?

The right time to buy Roswell Real Estate is when you are completely ready to do so . This will not be same for every person, so it is to make your own mind up. But fortunately, there are a few things which you have to consider if you are thinking about buying a home.

One important thing to remember is:   If you have no money, then it is not the right time to buy a home.

These days many people think of buying a home and they get very excited about it, but they forget about the costs which are related to buying a home.

Eventually, some things you may be able to handle, but if you don't have the money to cover bills related to owning a home now, you should not even think about buying a home.

If you really want to buy the perfect home for you, you have to take your time searching for the right one.

Buying a home without doing your homework could mean you choose a home which does not suit your needs.

The right time to buy a home is when you are completely ready financially.  This will not be same for each buyer, so make sure you take your time and do your homework.  Talk to your accountant or a qualified financial planner to see if you are financially ready to buy a home.

Lenders Beginning to Make Deals

With so many houses in the United States facing foreclosure, mortgage lenders are starting to offer favorable deals for distressed borrowers they would not have agreed to just six months ago.  This is not altruism, but a case of lenders trying to avoid being stuck owning hundreds of thousands, or even millions, of homes, according to economists, academics and other experts.

According to research by the non-profit organization the Center for Responsible Lending, there are 7.2 million outstanding subprime mortgages in the United States.  Subprime mortgages are those offered to people with weak credit histories at higher interest rates than those offered to prime borrowers — those with good credit.

The center estimates that more than 14 percent of all subprime mortgages are already in default and that 2.2 million families or individuals with a subprime mortgage made between 1998 and 2006 will lose their homes through foreclosure.  The center further estimates homeowners will lose $164 billion in equity as a result of the crisis.

In the third quarter of 2007, mortgage companies had modified the terms on 54,000 loans and had worked out new repayment plans for another 183,000, according to the Mortgage Bankers Association.

The association did not give comparative figures for the third quarter of 2006.  An official said the loan modification programs had likely expanded further during the fourth quarter of 2007.

For lenders, there are financial incentives to keep people in their homes, even if it means cutting interest rates and making less money.

When a home ends up in foreclosure, the lender becomes the owner of a property that quickly loses value, with no revenue coming in.  They are also liable to pay property taxes.

So before you lose your home to foreclosure, talk to your lender.  They may just be willing to work with you today in ways they wouldn't even think about a year ago.

2008 Housing Outlook

Although home prices nationwide are down 4.2 percent from a year ago, some economists are predicting "the worst is yet to come."

Just how bad will it get? According to Fiserv Lending Solutions, the median home price nationwide is expected to tumble 5.7 percent this year, which would make it the worst year for real estate in at least 40 years.

The problem stems from that classic economic conundrum: too much supply and too little demand. As of September, some 4 million existing homes were languishing on the market - almost double the number three years ago - in addition to 523,000 new homes.

If you were hoping to sell a home anytime soon, it's a pretty grim picture.  Prices aren't expected to rebound until 2009 at the earliest, and most experts think it will take several years for home values to get back to pre-bust levels.

If you're looking to buy a home, now could be the best time we've seen in decades, and quite possibly the best time we will see for a very long time to come.

Recession Near or Already Here?

More than three in four Americans believe the U.S. economy is already in a recession, or will be sometime in 2008.  That's according to a comprehensive poll commissioned recently by Fortune Magazine.

Only 19 percent of 1,000 Americans surveyed believe the nation will avoid a recession, while 57 percent believe there will be a downturn this year.  Another 19 percent believe the nation is already in a recession.

What's worse for the economic outlook, just about half of those surveyed say they've cut back their spending compared to last year.

These results indicate a far gloomier outlook than economists anticipated.

How worried are you?  Post a comment below.  We'd love to hear your take on the economy.  Don't worry, your contact information will never be posted on this blog.