Skyrocketing Rents Begin to Fizzle (not as much as you may think)

RISMEDIA, Friday, February 03, 2017:

Skyrocketing rents will begin to fizzle in 2017, driven by a multifamily market marked by less starts and oversupply, according to the Freddie Mac Multifamily Research Group's 2017 Multifamily Outlook.

"Demand for rental units is at a historic high due to demographic changes and lifestyle preferences, but increasing new supply and other factors are likely to moderate multifamily market growth in 2017," says Steve Guggenmos, Freddie Mac Multifamily vice president of Research and Modeling. "In particular, landlords are likely to pull back on rent increases as new supply enters the market and vacancy rates rise."

Rents are expected to grow at their 2016 pace; vacancy rates are expected to reach 5 percent for the first time since 2011.

 For more information go to: http://www.freddiemac.com/

A Local Perspective by: Dominick Leone

Northern Ocean County in New Jersey is still reeling from the effects of Super Storm Sandy, not just destroying homes but peoples credit and lives in general. Just after the storm, there was an unprecedented rush to locate rental housing for the storms victims who were left homeless. Years later, those who lost their homes, started to suffer financial hardships while trying to untangle the FEMA paper-jam and insurance nightmares. It drove some people to just abandon their homes and move on. 

Banks and lending institutions, not being as liberal as they would like (especial local community banks) under the Dodd-Frank regulations, developed a new set of hurdles for homeowners to jump over. Those who abandoned there homes had foreclosures on record because, while paying rent, they couldn't afford to continue a mortgage as well and this became a massive burden on their credit scores. This carried on to owners of homes who ran out of government assistance waiting for their homes to be raised and rebuilt, also having the burden of rent and mortgage payments at the same time. 

I'm not saying that things aren't getting better, I'm saying that there are still people trying to dig themselves out of a tough situation and their FICO scores are suffering because of it. So, buying a home is not within reach as of yet for many of the people who lost it all in the storm. To add insult on top of injury, when your credit is damaged (regardless of circumstance), renting a home isn't easy ether.

With the inventory becoming depleted and credit scores dropping, the rent rates jumped to all time highs. Like I said before, things seem to be improving a little, but I don't see much of a decline in rent rates for 2017. 

Those who invested in distressed and "bargain" properties with a fix and hold (for rent) portfolio may be the smart ones, creating  an annuity plan with equity growth in the future paid by their tenants. Passive income, 26 year depreciation on the property with added capital improvement and business tax benefits seems like the the winning formula in the long term real estate game.

5 Common Credit Score Killers

Re-posted from CBS Money Watch

By Christine DiGangi/Credit.com

Having a good credit score can help you save a lot of money over your lifetime, but many people find themselves with scores lower than they'd like because they don't know how much everyday things can hurt their scores.

Of course, once you know what those things are, you're better equipped to improve your credit.

Here are five common things that can hurt your credit.

1. High credit card balances

One of the most influential factors in credit scoring are your revolving credit balances relative to your credit limit. You may be able to afford to spend much or all of your available credit and pay the bills in full, but that doesn't mean you should.

The ratio of your credit card balance to the card's limit is called credit utilization -- it's calculated for each revolving credit account you have, as well as your total balances relative to your total amount of available credit. (Installment loans factor into credit utilization, too, but revolving credit has a greater impact.)

On average, Americans use 24 percent of their available credit, which isn't a bad place to be, but the lower you can get that credit utilization rate, the better. If you have low credit card limits and want to use your cards for a lot of purchases, consider paying your bill more frequently so the balance doesn't creep up.

2. Late payments

This is even more important than keeping your debt levels low. In fact, the most important thing you can do for your credit is make your credit card and loan payments on time. (Missing other bills, like for utilities, generally isn't reported to the credit bureaus, but unpaid accounts could be sent to a debt collector, and collection accounts hurt your credit.)

A single missed payment could knock dozens of points -- even 100 points -- off your score, so pay close attention to due dates.

3. Applying for a bunch of credit  cards at once

When you apply for a credit card or a loan, the potential creditor will want to see what your credit looks like. Credit checks for the purpose of extending credit are considered hard inquiries (a soft inquiry occurs during something like an account review, employer credit check or when you check your own credit), and hard inquiries will knock a few points off your score. If you apply for many credit cards in a short period of time, those little dings add up to a big dent in your score, but applying for loans is a bit different, since scoring models group those inquiries together so as not to penalize you for shopping around.

(You can read here about how applying for loans affects your credit scores here.)

4. Closing credit cards

It may seem strange to keep open an account you don't use, but it can make sense from a credit score perspective. Even if you don't use a credit card anymore, keeping it open can help improve your credit utilization rate. As soon as that account is closed, you lose that available credit, so you would need to reduce the amount of spending you do on credit cards to keep your utilization from increasing.

If a credit card is one of your older credit accounts, you would want to keep it open for the sake of keeping up your average age of credit, because that's something that takes a long time to build up. Having an average credit age lower than seven years can suppress your score.

5. Identity theft

You may not be able to prevent it, but the longer identity theft goes unchecked, the higher the chances it will hurt your credit score. A fraudster may open up accounts in your name or run up a huge balance on a stolen credit card, and if you don't stop it before the activity is shared with the credit bureaus, you'll also have to deal with getting that information off your credit reports. Identity theft is extremely common, so the best thing you can do is monitor your financial accounts closely and act quickly to cut off a fraudster as soon as you notice anything suspicious.

You can see the factors affecting your credit, plus create an action plan to improve your scores by checking your credit scores for free on Credit.com, which also shows a summary of your credit history so you can tell if you're dealing with any of the typical credit-score killers.

Curb Appeal - The WOW! Factor

Increase your homes value from the outside in.

Curb appeal is everything when it comes to selling your home, and that means your home’s exterior needs to be in optimal condition. In fact, 71 percent of prospective home buyers say that a home’s curb appeal is an important factor in their buying decision. This Article shows seven exterior home improvements that can increase resale value and help sell your home even faster:


Replace Your Front Door
Believe it or not, a front door says a lot about you and your home. A quality front door can be a huge asset for your home’s value, and how secure your home feels upon entrance. Kelly Fallis of Remote Stylist says, “It’s the first thing a buyer walks through. Repaint or replace; their first impression rests on it.” According to House Logic, a standard 20-gauge steel door can cost around $1,230, but that investment can more than pay for itself with the amount of value it adds to your home. A quality front door replacement can bring you a return of around 102 percent, which makes it a great bang for your buck.

Updated Landscaping
Over 92 percent of prospective home buyers use the Internet at some point during their search process, meaning a lot of eyes are going to be looking for pictures of your home. You want to be able to showcase your property in the best light possible to drive interested parties in for a closer look.According to Bankrate, a quality landscaping job has the potential to net you a whopping 252 percent return in increased home value. John Harris, a landscape economist, has stated that updated landscaping can increase a home’s value by 28 percent and have it sold 10-15 percent quicker.


New Paint
Most prospective homeowners tend to look at what they need to update or work on in the homes that they look at. Repainting your home can cause less stress on the buyer since they know that the job is fresh and adds to the look of the home. That being says, don’t go overboard with color choices. Choose warm and inviting colors, such as taupe, tan or white. “Individuals too often minimize the impact of a first impression,” says James Alisch, managing director of WOW 1 DAY PAINTING. “The exterior paint job of a home greatly impacts how potential buyers feel about a place.” You want to make sure that potential buyers can envision themselves inside your home, and having a neutral exterior color is appealing to a larger pool of buyers. If you do feel the need to add some brighter colors, make sure that they aren’t overpowering and can work well with the neutral base. It’s best to consult your local home improvement store to discuss your options and budget.


Add Home Automation
The home automation industry is expanding faster than ever. Nearly everyone has a smartphone with them at all times, so adding wireless automation to your home could be the feature that sways a buyer.According to HomeAdvisor, the average cost of adding home automation into your residence is around $2,100. Clair Jones of LocalInternetService.com says, “Most smart locks are available for under $250. For such a small purchase cost, homeowners can expect a full return on their investment when they sell their home, and may even see an opportunity to present their property as a ‘smart home,’ which is a hot market term right now.”

Like most technology products, the price ranges vary from cost-effective to break the bank, so weigh your potential return with your REALTOR® before proceeding.


Add a Privacy Fence
Having a quality fence can drastically change the look and security of your home and property. Depending on where you live, fences are on average four to nine feet tall and made of quality materials such as wood or stone. While a chain link fence is an option and may be secure, it won’t look good or provide the privacy that a wood or stone wall will. The average cost of a wood fence is $2,450, but homeowners can expect to get 100 percent back in updated home value.


Updated Windows

Replacing old, single-pane windows is a great way to add a level of security, modernize your home, and help bring energy costs down. According to Energy Star, you can save from $125-$465 per year on energy bills. While you may not recoup the entire cost of the new windows when you sell your home, many prospective buyers will see value in energy saving additions. New windows are a great way to give new life to your home without a ton of changes, and can help sway a buyer to choose your home.


Pressure Wash

Pressure washing is hands down the best bang for your buck in terms of rejuvenating the exterior look and feel of your home. Many people don’t realize how dirt their driveways and walkways are until they start pressure washing the surfaces and seeing the difference. Bob Vila says, “If the paint is still in good condition, a light pressure wash will brighten it up and welcome visitors.” For the low average price of $236 (maybe more depending on lot and home size), you can have your home and property pressure washed. You also have the ability to rent a machine at almost any home improvement store and turn it into a weekend project for yourself.

5 Ways to Pick the Perfect Time to Sell

By Tara-Nicholle Nelson  (reprinted)

Choosing the right time to list your home can make all the difference.

There’s a season for everything — including real estate.

If you’re gearing up to list your home for sale, you should connect with your agent to discuss your home sale action plan. But there are also a number of calendar-based factors you should be just as thoughtful about as you put together your plan for selling.

Here are five calendars that should be on every home seller’s radar.

1. The academic calendar

Families with school-age children often find it less disruptive to house-hunt in late spring/early summer with the aim of moving in before school starts. Of course, we all know what they say about the best-laid plans, so by no means should you let this stop you from listing your home at another time of year.

Demand for homes with convenient proximity to strong schools can increase during the summer school break and around other times of year when kids are not in school.

2. The tax calendar

I cannot count the number of relatively unmotivated looky-loo buyers I’ve worked with over the years who became suddenly motivated from a massive, looming tax bill. For instance, many new professionals will seek to close escrow on homes between the time they graduate and the end of that same year, in an effort to deduct their closing costs and mortgage interest from their new large incomes and avoid a big tax bill the following April. Similarly, just after tax time in April, a flood of newly motivated buyers come into the market, advised by their CPAs that the mortgage interest deduction is their best bet for not having to write as big a check to the IRS next year.

Fortunately for sellers, more buyers and more motivation means more demand and can translate into a faster sale at a higher price than at other times of the year.

3. The weather calendar

Many sellers who live in cold-weather climates are aware that wintry conditions can dramatically cut down the numbers of buyers who are out viewing properties. This is why buyer searches for homes on Trulia peak in January in warm-weather states like Hawaii and Florida — and not until after the spring thaw in the Midwest, the South, the Northeast, and most of the West.

The combination of what’s happening with the weather and the specific features of your home can interact to impact your home’s prospects for sale — and its ultimate sale price. Behavioral economics researchers have found that homes with swimming pools (and water slides, perhaps?) sell for more in the summertime than they do in winter.

“When it is sweltering outside, a swimming pool just looks attractive. There’s an emotional connection because it reminds us of fun times we have in the summer,” says Jaren Pope, assistant professor of economics at Brigham Young University.

So if it’s summer and you’re selling a home with ski slope access, you might want to paint the picture of a cozy, fun-filled winter by staging the place with ski gear and other items that help prospective buyers visualize how much fun they’ll have when winter comes. And vice versa: If it’s winter and you’re selling a house with a pool, consider making sure it is steamy and heated, if it has those features. Stage it with lounges, towels, lights — anything that showcases the pool to offset a cold-weather buyer’s psychological tendency to discount the appeal of a pool in the winter.

4. The holiday calendar

During the holidays, many buyers simply prefer to spend their downtime celebrating with family and friends versus. house hunting, especially in locales where the winters are wet or cold. Nationwide, December is the slowest month of the year for home searches, and November is the second-slowest.

Does this mean the holidays are a bad time to have your house on the market? Not necessarily. Some homes show beautifully when all lit up and tastefully dressed up for the holidays. And the truth is that there is a hardy contingent of buyers motivated to close by year’s end for tax purposes, every year in every market. While buyers might be fewer in number, those who will brave rain, sleet, and snow and forgo holiday parties to house-hunt can be some of the most motivated buyers of all.

5. The Gregorian calendar

We’re talking about the regular old January-through-December calendar here.

Home buying tends to be a popular resolution among those with money on their minds at the beginning of the year — and also among people looking forward to career promotions, developing their love and family relationships, or relocating to a new hometown. Make sure your home is well-represented on sites like Trulia at the beginning of the year, when these life- and financial-change visionaries start searching for their next nests.

Do you feel like the seasons or calendar had or would have an impact on your home purchase or sale? Share your comments,  

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Home Photography - How Does Your listing Show?

What's in Your Listing?

Most home buyers run through sites like Realtor.com, Trulia.com, Zillow.com and many others to find that perfect home that suits their needs. Having your home properly displayed in pictures will make all the difference in whether your house will be a candidate to be shown or not. 

First Impressions are Lasting Ones.

A home's first impression is created with the initial listing photo, which also appears as the primary photo for all of the real estate web sites as well. Once the search engine criteria is met and homes are displayed, the buyer runs through the photos first and then the details. Homes listed without photos usually go to the bottom of the buyers preference list. The first photo should be the most appealing part of the home. Most cases, real estate agents just take a photo of the outside and set it as the primary photo, when the inside of the home has some exceptional details that may be instant eye catchers and are hidden in the background photos. 

Prepare your home for the photo shoot.

• Remove the Clutter: One of the most common issues in home sales and photography is that over the years, people tend to accumulate a lot of items which personalize the home and sometimes overwhelms it. If possible, remove extra furniture, wall accents, family photos, etc. to a storage facility for later on when you move. Clean and simple is the rule.

• Home Staging: Just like when you might go to a portrait studio for a resume photo or head shot, you want to look your best. You get into a good looking suit or dress, hair in place, bright smile, etc. Your home should be staged to portray its best qualities and functionality. Not everyone can afford a home staging service to rent furniture and accessories and set up the rooms for magazine quality effect. In most cases, it may be that some of your existing furniture and effects need to be re-arranged and you can still have some great photos.  

• Grounds Maintenance: The outside of your home is as important as the inside. It's the first thing a buyer sees and can set the expectations for what they will be expecting inside. That first look has to say WOW!!! As a seller, don't loose this opportunity

Your homes listing photos are the main attraction, when it comes to getting prospective buyers to see your home. Make sure their the best they can be.