Under 40 and the Home is Under Water

Posted: September 4th, 2012 | Author: | Filed under: Uncategorized | No Comments »
 

With encouraging news about home prices finally rising and sales picking up, it's easy to think that the housing market is finally coming out of the dark ages.

But there's at least one trillion-dollar problem that lingers on: negative equity.

Though rising home values have shaved $42 billion off the nationwide total millions of Americans still owe more on their mortgages than their homes are worth, also known as being "underwater."

Just shy of 31% of American homeowners with mortgages are underwater, and nearly half of them are under 40 years old. But although a good chunk of that age group has underwater mortgages, they are some of the least likely borrowers to skip payments.

A lot has to do with how much homeowners are underwater. Though more borrowers under 40 are underwater, their loan-to-value ratios are smaller than those over 40.

The more a borrower is underwater, the more likely they are to feel that trying to pay back the loan is futile, even if they can afford the payment. That tends to result in more strategic defaults, where a borrower walks away from a property allowing it to be foreclosed on instead of paying on a mortgage larger than the home's value.

Another reason simply has to with a borrower's stage in life. Those under 40 are more likely to have children still living at home, and many are hesitant to disrupt family life despite having an underwater mortgage. Also, younger folks may be less likely to have more expensive or multiple houses, making them less precariously stretched when it comes to finances.

But economists point out that high levels of negative equity continue to stunt a deeper recovery in the housing market. Would-be sellers are trapped in properties because they can't break even on their mortgages. That in turn has tightened the supply of homes for sale and kept pent-up demand for housing at bay.

If you are underwater in your home and need assistance, contact Black and Buono.

US News


Boston Real Estate is Available to Young Professionals

Posted: July 30th, 2012 | Author: | Filed under: Uncategorized | No Comments »
 
...by Anthony Buono

If you are a realtor and you have a client that is in the beginning of their career, with a moderate amount of student loan debt, and negligible savings and they want to live in Boston, they can.

Boston is actually one of the best cities in the country to purchase a condo. How?

The answer is a little-known program that pairs a combination of public and private benefits to enable low- and middle- income first-time homebuyers to afford to purchase units in newly constructed luxury buildings. In Boston.

Many believe that affordable home programs are aimed only at those willing to live in government-run, government-built housing. Boston’s Inclusionary Development Program (IDP) is a 12-year-old initiative of Mayor Thomas M. Menino and the Boston Redevelopment Authority.

The program sets aside 13% of all units in newly constructed market-rate buildings with 10 or more units for individuals with incomes below $54,750 (80% of the area’s median income), $68,450 (100% of AMI), or $82,150 (120% of AMI) depending on the unit. It should be noted the program adjusts those income levels for households of up to eight people.

In addition to merely setting aside the units, the IDP restricts the sale price of the units. A typical one bedroom apartment, most with highly coveted addresses, high-end fixtures & appliances and a market value in excess of $300,000, cannot be sold by the developer for more than $167,900. Once the development project is complete a lottery is held for those who qualify.

There is a re-sale component of the program that increases your clients odds of getting one of these condos. The city’s development arm places deed restrictions on re-sale of the units that requires purchasers to only sell to other income-qualified individuals.

Real Estate professionals and attorneys who know how to file the necessary paperwork can help your clients with the purchase and sale of these condos in Boston.Your client can save tens of thousands of dollars by opting to purchase a condo in Boston versus relocating somewhere with a “lower” cost-of-living.

Boston has made great strides at identifying ways to help low- and middle- income individuals, oftentimes young professionals, afford to own property in the heart of the city. Contact Black and Buono for more information on this program or for real estate assistance.


Excerpts Boston.com


Boston Real Estate is Available to Young Professionals

Posted: July 30th, 2012 | Author: | Filed under: Uncategorized | No Comments »
 
...by Anthony Buono

If you are a realtor and you have a client that is in the beginning of their career, with a moderate amount of student loan debt, and negligible savings and they want to live in Boston, they can.

Boston is actually one of the best cities in the country to purchase a condo. How?

The answer is a little-known program that pairs a combination of public and private benefits to enable low- and middle- income first-time homebuyers to afford to purchase units in newly constructed luxury buildings. In Boston.

Many believe that affordable home programs are aimed only at those willing to live in government-run, government-built housing. Boston’s Inclusionary Development Program (IDP) is a 12-year-old initiative of Mayor Thomas M. Menino and the Boston Redevelopment Authority.

The program sets aside 13% of all units in newly constructed market-rate buildings with 10 or more units for individuals with incomes below $54,750 (80% of the area’s median income), $68,450 (100% of AMI), or $82,150 (120% of AMI) depending on the unit. It should be noted the program adjusts those income levels for households of up to eight people.

In addition to merely setting aside the units, the IDP restricts the sale price of the units. A typical one bedroom apartment, most with highly coveted addresses, high-end fixtures & appliances and a market value in excess of $300,000, cannot be sold by the developer for more than $167,900. Once the development project is complete a lottery is held for those who qualify.

There is a re-sale component of the program that increases your clients odds of getting one of these condos. The city’s development arm places deed restrictions on re-sale of the units that requires purchasers to only sell to other income-qualified individuals.

Real Estate professionals and attorneys who know how to file the necessary paperwork can help your clients with the purchase and sale of these condos in Boston.Your client can save tens of thousands of dollars by opting to purchase a condo in Boston versus relocating somewhere with a “lower” cost-of-living.

Boston has made great strides at identifying ways to help low- and middle- income individuals, oftentimes young professionals, afford to own property in the heart of the city. Contact Black and Buono for more information on this program or for real estate assistance.


Excerpts Boston.com


Record Numbers of Single Women are Buying Homes

Posted: June 20th, 2012 | Author: | Filed under: Uncategorized | No Comments »
 

Single women are the fastest growing segment of the real estate market. Today there is a record number of single women buying homes. As the real estate market rebounds, now is the perfect time to buy a home if you are a single woman.
 
More than one in five home buyers is a single woman. In fact, single woman are buying homes at more than twice the rate of single men, buying one out of every five properties sold in the U.S. Single women make up more than one-third of the growth in real estate ownership since 1994.

If you are a single woman with a strong desire to own her own home, if you need more space or want smaller home or need to relocate closer to job, school or family, the housing market and the economic environment is perfect for you.

Female home buyers come in all sizes, shapes and ages; either divorced, never married, separated, widowed, kids or no kids, living with partners, more and more single women are buying homes. But this group often has special concerns and fears about buying property. One of the biggest concerns of single women seeking a new home is being taken advantage of by real estate professionals, from inspectors to agents to lawyers.
 
As you decide to empower yourself, seek to surround yourself with like female real estate agents and female real estate lawyersContact Kiley Black of Black and Buono who has recently helped numerous single women in the Boston area buy their new home.


Record Numbers of Single Women are Buying Homes

Posted: June 20th, 2012 | Author: | Filed under: Uncategorized | No Comments »
 

Single women are the fastest growing segment of the real estate market. Today there is a record number of single women buying homes. As the real estate market rebounds, now is the perfect time to buy a home if you are a single woman.
 
More than one in five home buyers is a single woman. In fact, single woman are buying homes at more than twice the rate of single men, buying one out of every five properties sold in the U.S. Single women make up more than one-third of the growth in real estate ownership since 1994.

If you are a single woman with a strong desire to own her own home, if you need more space or want smaller home or need to relocate closer to job, school or family, the housing market and the economic environment is perfect for you.

Female home buyers come in all sizes, shapes and ages; either divorced, never married, separated, widowed, kids or no kids, living with partners, more and more single women are buying homes. But this group often has special concerns and fears about buying property. One of the biggest concerns of single women seeking a new home is being taken advantage of by real estate professionals, from inspectors to agents to lawyers.
 
As you decide to empower yourself, seek to surround yourself with like female real estate agents and female real estate lawyersContact Kiley Black of Black and Buono who has recently helped numerous single women in the Boston area buy their new home.