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Honest Info to keep you informed :: REAL ESTATE MATTERS
Monday, September 19, 2011
Tuesday, July 12, 2011
National Housing Survey From Fannie Mae
Belief in Homeownership
- 96% of all homeowners said homeownership has been a positive experience.
- 84% of Americans still believe that owning a home makes more sense than renting.Even 68% of renters believe owning makes more sense.
- 64% consider buying a home as a safe investment. Buying a home was considered safer than buying stocks by over three times the number of people (64% vs 17%).
- 2 in 3 Americans believe that lifestyle benefits of homeownership (65%) are superior to the financial benefits (32%).
Top Non-Financial Reasons to Buy a Home
Lifestyle Benefits: The broader security and lifestyle benefits of homeownership, such as providing a good and secure place for your family and children, where you have the control to make renovations and updates if you want, and in a place that’s in a community and location that you prefer.
- It means having a good place to raise children and provide a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control over what you do with your living space (renovations & updates)
- It allows you to live in a nicer home
- It allows you to live in a location that is closer to work, family, or friends
Top Financial Reasons to Buy a Home
Financial Benefits: The financial benefits of homeownership: its value as an investment (especially compared to paying rent), its value as a way to build up wealth for retirement or to pass on to your family, and the tax benefit.
- Paying rent is not a good investment
- Buying a home provides a good financial opportunity
- Owning a home is a good way to build up wealth and pass it along to my family
- It is a good retirement investment
- Owning a home provides tax benefits
- Owning a home gives me something I can borrow against if I need it
Friday, February 11, 2011
Don't wait to buy. Your home now costs more - as interest rates are on the rise.
Interest rates have risen significantly in the past 90 days (Nov - Jan 2011) - right now they are at about 5%. Prices, by and large, are flat in our Boulder Metro area but now your home will cost slighty more than in 2010. Let's just say that even if the price of a home is to fall another 10% this year, based on current rates, the cost of a home will increase if interest rates go up more than 1%. What does this tell us? Buyers should not worry where prices are going. They should be concerned where costs will be later in the year. There are some great deals in our market right now.
Tuesday, February 1, 2011
2011 - A year a house becomes a home again
2011: The Year a House Again Becomes a Home
by The KCM Crew
For almost a decade now, every time we talked about real estate we immediately discussed money. We didn’t talk about the value of a home but instead about the price of the house. We didn’t worry about a roof over our heads but instead the ceiling on our interest rate. We didn’t care as much about where we raised our family as we cared about how much we increased our family’s net worth.
That will change in 2011. The KCM Crew believes very strongly that real estate will return to what it has been for the 200+ year history of this country: a place for us and our families to live comfortably. It will also prove to be a great long term investment as it always has been.
Our parents and our grandparents didn’t buy their homes as a short term financial investment. They bought it so they had a place of their own to come home to at the end of the day; a place to raise their family; a place they could feel safe.
Sure they dreamed of a ‘mortgage-burning’ party. They realized it was a form of forced savings. They were taught that, if they paid their mortgage every month, they would wind up with a little retirement account decades later.
And, they realized that wouldn’t happen if they rented.
However, in the last decade, we somehow forgot that the financial aspect was the serendipity not the major reason to buy. We believe that 2011 will be the year that people return to the historic reasons families purchased a home. This is the year when we again remember that homeownership is a major part of the American Dream.
What about the challenges to a housing recovery? Let’s look at them.
The Economy
Most reports are showing that the economy is doing better than expected. This shopping season provided additional proof of this point. As the economy recovers, so will consumer confidence. This will be great news for housing.
Unemployment
There is much talk about a ‘jobless recovery’. We agree that unemployment will continue to be a challenge. However, when you talk about housing, it is not the unemployment rate that is all telling. Instead, it is the change in the rate. As unemployment skyrocketed, people started to worry about their own job. Any change creates concern. Unabated concern turns to fear. Fear causes paralysis. The spike in unemployment has plateaued. People no longer have the feeling that ‘they are next’. The fear will diminish and people will start moving on with their lives. This too will be great news for housing.
Interest Rates
It seems the bottomless pit in which rates have been falling does have a floor after all. And it seems we have found it. Those purchasers who had been waiting for the best interest rate may have already missed it.
Prices
Economists are projecting that prices will not see any appreciation in 2011. Sellers who had been waiting for 2006 to return will come to the realization that waiting any longer makes little sense. They will instead decide to get on with their lives and sell this year.
Prices probably will soften further. However, the possible savings to potential buyers will be minimized by a rise in interest rates.
Bottom Line
This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value.
by The KCM Crew
For almost a decade now, every time we talked about real estate we immediately discussed money. We didn’t talk about the value of a home but instead about the price of the house. We didn’t worry about a roof over our heads but instead the ceiling on our interest rate. We didn’t care as much about where we raised our family as we cared about how much we increased our family’s net worth.
That will change in 2011. The KCM Crew believes very strongly that real estate will return to what it has been for the 200+ year history of this country: a place for us and our families to live comfortably. It will also prove to be a great long term investment as it always has been.
Our parents and our grandparents didn’t buy their homes as a short term financial investment. They bought it so they had a place of their own to come home to at the end of the day; a place to raise their family; a place they could feel safe.
Sure they dreamed of a ‘mortgage-burning’ party. They realized it was a form of forced savings. They were taught that, if they paid their mortgage every month, they would wind up with a little retirement account decades later.
And, they realized that wouldn’t happen if they rented.
However, in the last decade, we somehow forgot that the financial aspect was the serendipity not the major reason to buy. We believe that 2011 will be the year that people return to the historic reasons families purchased a home. This is the year when we again remember that homeownership is a major part of the American Dream.
What about the challenges to a housing recovery? Let’s look at them.
The Economy
Most reports are showing that the economy is doing better than expected. This shopping season provided additional proof of this point. As the economy recovers, so will consumer confidence. This will be great news for housing.
Unemployment
There is much talk about a ‘jobless recovery’. We agree that unemployment will continue to be a challenge. However, when you talk about housing, it is not the unemployment rate that is all telling. Instead, it is the change in the rate. As unemployment skyrocketed, people started to worry about their own job. Any change creates concern. Unabated concern turns to fear. Fear causes paralysis. The spike in unemployment has plateaued. People no longer have the feeling that ‘they are next’. The fear will diminish and people will start moving on with their lives. This too will be great news for housing.
Interest Rates
It seems the bottomless pit in which rates have been falling does have a floor after all. And it seems we have found it. Those purchasers who had been waiting for the best interest rate may have already missed it.
Prices
Economists are projecting that prices will not see any appreciation in 2011. Sellers who had been waiting for 2006 to return will come to the realization that waiting any longer makes little sense. They will instead decide to get on with their lives and sell this year.
Prices probably will soften further. However, the possible savings to potential buyers will be minimized by a rise in interest rates.
Bottom Line
This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value.
Monday, January 10, 2011
Frozen Pipe Prevention
Preventing Frozen Pipes
An average of a quarter-million families have their homes ruined and their lives
disrupted each winter, all because of water pipes that freeze and burst.
And recovering from frozen pipes is not as simple as calling a plumber. An eighth
-inch (three millimeter) crack in a pipe can spew up to 250 gallons (946 liters) of
water a day. Both plastic (PVC) and copper pipes can burst.
By taking a few simple precautions, you can save yourself the mess, money and
aggravation frozen pipes cause.
Before the cold hits
Insulate pipes in your home's crawl spaces and attic. These exposed
pipes are most susceptible to freezing. Remember - the more
insulation you use, the better protected your pipes will be.
Heat tape or thermostatically-controlled heat cables can be used to
wrap pipes. Be sure to use products approved by an independent
testing organization, such as Underwriters Laboratories Inc., and only
for the use intended (exterior or interior). Closely follow all
manufacturers' installation and operation instructions.
Seal leaks that allow cold air inside near where pipes are located. Look
for air leaks around electrical wiring, dryer vents and pipes. Use caulk
or insulation to keep the cold out and the heat in. With severe cold,
even a tiny opening can let in enough cold air to cause a pipe to
freeze.
Disconnect garden hoses and, if practical, use an indoor valve to shut
off and drain water from pipes leading to outside faucets. This reduces
the chance of freezing in the short span of pipe just inside the house.
When the mercury drops
A trickle of hot and cold water might be all it takes to keep your pipes
from freezing. Let warm water drip overnight, preferably from a faucet
on an outside wall.
Open cabinet doors to allow heat to get to uninsulated pipes under
sinks and appliances near exterior walls.
Before you go away
Set the thermostat in your house no lower than 55°F (12°C).
Ask a friend or neighbor to check your house daily to make sure it's
warm enough to prevent freezing or
Shut off and drain the water system. Be aware that if you have a fire
protection sprinkler system in your house, it will be deactivated when
you shut off the water.
If your pipes freeze
Don't take chances. If you turn on your faucets and nothing comes
out, leave the faucets turned on and call a plumber. If you detect that
your water pipes have frozen and burst, turn off the water at the main
shut-off valve in the house; leave the water faucets turned on. (Make
sure everyone in your family knows where the water shut-off valve is
and how to open and close it.)
Never try to thaw a pipe with a torch or other open flame. Water
damage is preferable to burning down your house. You may be able to
thaw a frozen pipe with the warm air from a hair dryer. Start by
warming the pipe as close to the faucet as possible, working toward
the coldest section of pipe. Do not use electrical appliances in areas of
standing water because you could be electrocuted.
Visit the Disaster Survival House section with more than 140 tips or visit your
local State Farm® agent for additional information on a specific subject.
An average of a quarter-million families have their homes ruined and their lives
disrupted each winter, all because of water pipes that freeze and burst.
And recovering from frozen pipes is not as simple as calling a plumber. An eighth
-inch (three millimeter) crack in a pipe can spew up to 250 gallons (946 liters) of
water a day. Both plastic (PVC) and copper pipes can burst.
By taking a few simple precautions, you can save yourself the mess, money and
aggravation frozen pipes cause.
Before the cold hits
Insulate pipes in your home's crawl spaces and attic. These exposed
pipes are most susceptible to freezing. Remember - the more
insulation you use, the better protected your pipes will be.
Heat tape or thermostatically-controlled heat cables can be used to
wrap pipes. Be sure to use products approved by an independent
testing organization, such as Underwriters Laboratories Inc., and only
for the use intended (exterior or interior). Closely follow all
manufacturers' installation and operation instructions.
Seal leaks that allow cold air inside near where pipes are located. Look
for air leaks around electrical wiring, dryer vents and pipes. Use caulk
or insulation to keep the cold out and the heat in. With severe cold,
even a tiny opening can let in enough cold air to cause a pipe to
freeze.
Disconnect garden hoses and, if practical, use an indoor valve to shut
off and drain water from pipes leading to outside faucets. This reduces
the chance of freezing in the short span of pipe just inside the house.
When the mercury drops
A trickle of hot and cold water might be all it takes to keep your pipes
from freezing. Let warm water drip overnight, preferably from a faucet
on an outside wall.
Open cabinet doors to allow heat to get to uninsulated pipes under
sinks and appliances near exterior walls.
Before you go away
Set the thermostat in your house no lower than 55°F (12°C).
Ask a friend or neighbor to check your house daily to make sure it's
warm enough to prevent freezing or
Shut off and drain the water system. Be aware that if you have a fire
protection sprinkler system in your house, it will be deactivated when
you shut off the water.
If your pipes freeze
Don't take chances. If you turn on your faucets and nothing comes
out, leave the faucets turned on and call a plumber. If you detect that
your water pipes have frozen and burst, turn off the water at the main
shut-off valve in the house; leave the water faucets turned on. (Make
sure everyone in your family knows where the water shut-off valve is
and how to open and close it.)
Never try to thaw a pipe with a torch or other open flame. Water
damage is preferable to burning down your house. You may be able to
thaw a frozen pipe with the warm air from a hair dryer. Start by
warming the pipe as close to the faucet as possible, working toward
the coldest section of pipe. Do not use electrical appliances in areas of
standing water because you could be electrocuted.
Visit the Disaster Survival House section with more than 140 tips or visit your
local State Farm® agent for additional information on a specific subject.
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