REAL ESTATE INVESTMENT

Here’s a suggestion when looking to make a real estate investment.  Look where artists live now. Sociologists say that artists are often an early sign of neighborhood gentrification – the advance guard of what’s hip and cool.  But, be aware that it might be several years before you realize a profit.

Such an area in Naples is the Bayshore Drive area located off of US 41 (Tamaimi Trail), just a few short miles to 5th Ave South in Olde Naples.

MORTGAGES

The shifting home market is prompting investors to demand higher standards for subprime loan approvals. Many loans for 100 percent of a property’s value required a minimum credit score of 580 last year; now lenders want at least 600.

Another move was by Wells Fargo Home Mortgage – in reaction to the State of Ohio’s Senate Bill 185, was that they will not be accepting mortgage applications for stated income, no documentation, and no ratio type loans.  Senate Bill 185 has to do with mortgages originated by non-bank entities in Ohio may not be accepted for inclusion in the securitization pools.

Are states starting to see the financial impact of high risk and subprime loans? 

Are we going to see more states enacting such legislation? 

Will more non-bank lenders stop accepting these loan applications?

BUILDING GREEN

Have you hear of the term – "BUILDING GREEN?"  You maybe hearing that term now or more of that term in the not too distant future.  Building Green refers to construction of buildings that are environmental friendly.  There are homes being constructed in southwest Florida that meet "green" standards.  When I see homes meeting this classification information about the homes or developments will be published here.

Have you had any experiences with "building green?"

Would you care to share your experience or comments here?

What are you finding as both the pro’s and con’s of "green construction?"

I do not have an opinion at this time, but interested to learn more about it.

A GNAWING PROBLEM FOR YOUR FLORIDA HOME

Termite swarming season has begun. Swarming season occurs when termites begin to leave their colonies, or swarm, to search for new nesting sites. Many homeowners first discover that they have a termite problem when these winged, black insects about 1/4-inch long are in their homes. According to Florida Agriculture and Consumer Services Commissioner Charles Bronson, termites cause millions of dollars in damage to houses in Florida every year. “Most pest control operations in Florida have the proper training and have good business practices, but there are unlicensed companies out there,†Bronson warns consumers. More info is available at the Department’s Web site, http://www.FloridaTermiteHelp.org, or by calling 1-800-HELPFLA (1-800-435-7352).

It does pay to have an annual termite and wood destroying organism inspection for your property.  An ounce of prevention is worth a pound of cure.

MORTGAGE FRAUD – CAN IMPACT YOUR HOME’S VALUE

Mortgage fraud flourishes in down markets, and the current real estate market provides an excellent backdrop. It can creep into any neighborhood and hurt buyers, sellers, lenders and even neighbors.  Why?  When mortgage fraud takes place, sometimes the borrower may not be able to continue making payments.  The effect is that the property is either sold at a discounted value either in the pre-foreclosure phase, at foreclosure auctions or after foreclosure.  If lenders take a loss on a loan the cost of the loss is passed onto the consumer in higher rates through other products and services offered by a lender.

MORTGAGE RATES

Speaking about mortgage fraud – let’s look at how mortgage rates are doing this past week -rates on 30-year mortgages fell this week to the lowest level in six weeks – 6.22 percent.  Combine this with the strong buyers’ market in many locations – buyers are in an excellent position to get an excellent buy.

FLORIDA REAL ESTATE PROPERTY TAXES

The National Federation of Independent Business told a Florida House committee yesterday that it opposed its tax plan to exchange lower property taxes for higher sales taxes. The group fears that, over time, commercial enterprises will be forced to take on more of the state’s tax burden.  I agree with stance as the employers will have to pay more in salaries and wages for the lower paying positions to retain employees.  Overall, I think it might disastrous position for businesses in the State of Florida.

DEED SCAM

Be aware and save yourself some money.  Some companies pressure homebuyers into purchasing a certified copy of their property deed and charging them as much as $100, according to Consumer Reports.

If you need a copy of your property deed, you can always either go to your local county’s clerk of courts office or if they have a web site.  You can search the public records and make a copy of the deed.   Just as a reminder, always keep the recorded deed as well as your owner’s title insurance policy in a safe place – one suggestion is your safe deposit box at your local bank.

FLORIDA REAL ESTATE PROPERTY TAXES
Lawmakers in the state House of Representatives are ready to lower Floridians’ property taxes – by raising the state’s 6-cent sales tax by 2 to 3 more pennies and making it the highest in the nation.  Increasing the sales tax may result in a greater portion of low income households paying a higher percentage of their income towards the sales tax.  And further cause more issues with having enough workers to fill entry-level positions in many support positions within the various companies through out the state.

HOME CONSTRUCTION COSTS

Supplies of cement and other key construction material stabilized or increased within the past year, easing concerns about escalating costs for home builders and commercial-construction companies. Even in Florida –"a black hole" for cement consumption historically – consumption dropped during the final months of 2006.  Could another reason for the easing of key construction materials be due to 2006 being a quiet hurricane season as well as due in part to the slow down for construction of new homes?

HOME MORTGAGES

The implosion of the subprime mortgage market should be a reminder to commercial investors about the risks of lax lending standards. Yet many commercial lenders continue to dole out risky loans to borrowers with weak financial prospects, or more widely allowing loans with limited or no covenants.  This kind of sounds like closing the gate after the horse escapes.  The ease of obtaining loans for home purchases has been way too weak for the past fews years.  In fact, the state income loans, as few years ago were called "inflated income loans."  Today, many are calling them "liar loans."  With recent legislation and the IRS’s cooperation, maybe some of the liar loans will be stopped dead in their tracks.

FLORIDA HOMEOWNERS INSURANCE

Insurance companies on Monday dropped a court challenge to a new state rule preventing them from immediately canceling some homeowners’ policies or raising rates. Why? Because the Florida Office of Insurance Regulation now says that companies can proceed with plans not to renew policies for customers who had already been notified they were being dropped.

FLORIDA ENVIRONMENT PRESERVATION

Florida’s land conservation program is a model envied by many states, with more than 2.2 million acres purchased and preserved by state and local governments since 1991. Still, about 1 acre is preserved for every 5 acres that are developed, according to one nonprofit conservation group.

HOME AFFORDABILITY

Higher property taxes, insurance premiums and housing costs appear to be impacting schools across the state. Florida officials expected school enrollment to rise by more than 48,000 students last fall, but only 477 additional children enrolled and school superintendents pointed to housing affordability issues as a major factor.  One day I hope to write about my thoughts of home affordability.