Real Estate Update

Greg Ellingson asked:




Don’t let the horror stories of storage space put you off the care-free life of being a condominium owner. Since the early days of condos, the idea of condo life has become so popular, that storage space is hardly a factor anymore.

This is because clever interior designers have seen a need in the housing market and they have come up with many innovative ideas to solve the problem.

What has NOT changed since condos became popular is that condo life frees you up for loads more fun or learning or relaxing. However, when the question of whether to move into a condo or a small house comes up, inevitably the space problem is always right up there in the pros and cons.

It’s a fact that there is less storage room in a condo than in a single family house. Many home owners, even in houses, actually prefer to rent storage space and keep their houses less cluttered. Not everything can be stored in an outdoor shed, for fear of dampness and vermin.

All types of winter sporting gear, Christmas trees, decorations and down-filled jackets can all be stored away from your home during the months that you won’t need them. Condo owners have even more need to store items away, as their cupboard space is so limited.

However, if renting extra space is not what you would like, there are many ideas on the market to help with storage space; here are just a few:

Many people like the look of a clear expanse of floor in their condo, to give the feel of spaciousness. However, such items as coffee and end tables usually break up this straight run of floor. (The exception is the glass topped coffee table.)

While you are interrupting the continuum of floor space, you may as well make the most of these tables as storage space. Some coffee tables are designed for storage. Look for ones with two or three rattan baskets underneath, to keep a tidy look.

An even better way to house your storage is to use a flat topped trunk as a coffee table. Sometimes you can find an antique trunk and there are also custom made trunk-style coffee tables.

These are fashioned after the old sea-going chests that our great-grandmothers may have traveled with. Many people also put a couple of cushions on top of these chests, and keep them for a spare seat on their balconies. A large cedar trunk, made in America, is under $200 on the Internet; they also have half chests to match, which would substitute for end tables.

Two more storage areas that are often not utilized are the bathroom and the car parking area. Both these areas can offer storage space that doesn’t spoil the clutter-free look you want.

When you walk into your bathroom, you will want to admire the spacious look of the room; you do not want a selection of storage containers on display. However, as you walk in, you will never notice a shelf high up, above the doorway.

This will only be seen once you are actually right in the bathroom and turn around. (You may need permission to actually hang a small cupboard up there, but a cupboard is rather deep, whereas a shelf may be okay.)

Many items can be stored up here: large towels, toilet rolls, electrical hair appliances and jumbo sizes of shampoo, etc. This will free up your cabinets for the items that are in daily use.

The final storage idea that has hit the market recently is a large lockable bin that you keep in your car parking space. For this you need a wall and permission to drill into it. (If you were refused permission and were really innovative you could make a wooden frame to house the bin.)

The bin itself is made of metal mesh so that you can see what is stored in it. Car lockers can be ordered on the Internet in sizes as large as eight by four by four feet. They have metal sliding doors, will carry up to 200 lbs, and are easily mounted on the wall. They sit in the area above your hood, about 6 feet off the ground so that the car can still be parked in its normal spot. A bin is large enough for you to keep a small three-step stool folded down into it, for easier access.

Since condos often have gates and/or 24 hour security, there would be virtually no risk of theft from these lockable units.

Just by utilizing the space under your coffee tables, over your bathroom door, and above the hood of your car, you have probably gained about 130 square feet of storage.

Bryan Hendersen asked:


Economic weakness threatens the chances of many Americans to become homeowners and so threatens the nation’s ability to thrive as a nation. Keen to help, the federal government offers the First Time Home Buyer Stimulus Package. It targets first time buyers and those who have not owned a home in three or more years.

Purchases under this program are of pre-owned homes and homes in the new construction phase, stimulating demand in the housing market. Whether indirectly, by boosting buys of pre-owned homes, or directly, by boosting housing starts, this gives builders and their crews more work. As for homeowners, they receive help in three ways, with tax credits, assistance with down payments, and with decreased interest rates.

The initial purpose of the stimulus program was to stave off the economic slowdown of which existence became apparent during the financial crisis of 2008. The developing situation demanded reinforcement of these efforts, which came in the form of a more comprehensive plan from the federal government. In particular, the Obama administration believed that the reluctance to spend money came from the fear of losing home ownership. This, along with the collapse of real estate market, convinced to administration to act to stimulate home ownership.

For any purchase made in the year 2009, a homebuyer may qualify for a 10 percent tax credit. This may for up to $8,000, with the basis being the gross purchase price. The home owner may claim this credit either the year of purchase or within two years of purchase. This tax credit provides money to the homeowner, which he may decide to save.

Next is a reduction in the down payment. Usually, these are at least ten percent of the home’s price. The government plan is to pay off part of the down payment. Lower down payments make it easier to purchase the home. Furthermore, reducing the down payment reduces the burdens keeping you from placing money in an investment account or from improving the new home. Also, government help may reduce the interest rate on your home loan by reducing the basis points on the interest rate. Qualification for the tax credit requires that a single person’s income not exceed $75, 000 and that with a partner income not exceed $150,000.

A third way to encourage home purchases is a tax rebate. In this case, the federal government places the rebate on the amount of interest assessed on the loan. This is not related to the tax credit. Under this stimulus program, homeowners may apply for both the credit and the rebate. Landlords, who buy property for income purposes, may qualify for the rebate. Because the landlord’s maintenance expenses go to the upkeep of the rented property, they are eligible for income tax deductions. Hence landlords are eligible for the rebate.

Economic growth is impossible without continuous improvement of the national infrastructure. However, the collapse in the demand for housing hits precisely here. The Obama adminstration intends to rectify this with tax credits, down payment assistance, and interest rate reductions. Under the First Time Home Buyer program, it intends to place buyers in new homes and stimulate economic activity.

DC Fawcett asked:




The Federal Housing Administration was created in 1934 under the National Housing Act in order to insure mortgages on single family which allowed banks to issue a greater number of personal loans and mortgages without risking their very much of their own capital; however, with today’s declining housing market many of these insured mortgages have not been paid back thus creating a large amount of FHA foreclosures. These foreclosures exist for several reasons including the fact that the FHA mortgage was created to help stabilize the housing market by allowing a greater number of individuals to qualify for home loans and mortgages. These individuals are often not the most financially stable of individuals even though there are several measures used to separate those desperate for a loan from those who can afford a loan. Finally, when the housing market tanked, these individuals were the first ones to feel the fiduciary pressure and to default on their loans and mortgages.

Since 1934, when the administration was created, the FHA has insured over thirty-four million mortgages nationwide. This means that through dozens of different financial institutions the government created administration guaranteed the repayment of a certain percentage of an extended loan to a bank or other lending institution. They could do this because they had tough guidelines for who they insured and who they did not insure. The first stipulation is that the established mortgage payment will be no more that thirty-one percent of the client’s gross monthly income.

Included in your mortgage payment is the principle, annual property taxes associated with the house, interest rate payments, and property insurance. Another stipulation that a client’s total debt encumbrance (including credit card payments, automobile loans, and student loans) is less than forty-five percent of the gross monthly income. While these guidelines seem to be pretty strict and hard for the average person to qualify for, they are much less than the average bank asks a debtor to adhere to. Therefore, people marginalized by their personal financial history have a better chance of qualifying for a loan insured by the Federal Housing Administration than through other means. This means that people who may not think that they have the financial stability to afford a housing loan could now qualify for a loan from a bank.

When the housing market collapsed in 2006, residential property suddenly reversed in path and started to devaluate, much like a new car does when you drive it off of the lot. This meant that lending institutions could no longer expect an acquired property to be worth more than the initially extended loan which meant that people could actually save money by defaulting on loans or mortgages.

Since loans guaranteed through FHA were issued to individuals who needed the extra financial help, the rate of FHA foreclosures versus regular foreclosures is extreme. These individuals do not have the resources that other individuals may have and therefore are more likely to have their home be foreclosed upon. Therefore, there are an excessive amount of FHA foreclosures on the market because they were issued to those people who would suffer the most if the housing market suddenly collapsed – which it did in 2005.