This is an ideal real estate market for cash buyers and according to CNN Money, cash sales accounted for 43% of the national real estate market in 2014. This is nearly half of all transactions. What has caused an increase in paying for a property in cash? Several factors contribute, including a tough mortgage lending market. There are only a limited number of qualified buyers who have not suffered a dent in their credit, a foreclosure or short sale of property in the last five years. Banks and mortgage brokers are still quite strict with lending requirements. With Baby Boomers’ retirement looming or imminent, many have the means - and find it easier to pay with cash, rather than relying upon a mortgage lender.
In some markets, there are inventory shortages, and cash buyers want to go to the head of the line. Often they do – because the real estate purchase is simplified and the closing time may be shortened if the buyer is able to pay in cash.
Who is the Cash Real Estate Buyer?
There are many different personas capable of paying cash for a home purchase, and there are foreign buyers influencing cash purchase figures. The reality is that cash buying is on the advance in many states, including Virginia, where the brokerage I represent, Coldwell Banker Traditions says that cash buyers account for 33% of all sales in 2014 as of May 2014.
Retirees Pay Cash for Homes
The retired sector of the economy now has decades of equity in homes and they are once again on the move. As the real estate market perks up in various U.S. markets, retirees are considering moving out of state to lower expenses and downsizing or embracing retirement community living lifestyles. Living in the Williamsburg, Virginia real estate market has always been popular with retirees, especially those who love golf, history and plenty of outdoor activities.
Cash Buyers Looking for Deals
John Starke is a Registered Principal at Financial West Group, based in West Lake Village, California. He said, “I purchased a foreclosure in Virginia that was in excellent condition, so I picked it up. I saved at least 35% by paying cash for the home in the fall of 2013. The property is in Mechanicsville, Virginia. It’s just 10 miles from Richmond and sits on a half acre. It’s a 3 bedroom 2 bathroom with an enclosed backyard, to keep my dogs happy,” added Starke.
Jeff Hurd, Loan Originator at Fidelity Bank Mortgage in Newport News says, “As a lender, I don’t see the cash buy of owner occupied homes. I think the number of people has increased, simply because a lot of people are meeting more resistance to getting a mortgage in the first place. It’s more of a ‘perceived’ hassle to finance a house.”
Clearly the trend to pay in cash has benefits for the home buyer. There are lots of reasons why home buyers prefer this to traditional financing. The most popular cash buyers in today’s market are the second home purchaser, the owner occupied home purchaser and foreigners purchasing real estate in the United States.
Second Home Purchases Often Paid for With Cash
The second home purchase is becoming increasingly popular for cash buyers in Florida. In fact, in the Cape Coral area of Florida, cash buys account for 74% of all purchases in 2014. This is a significant portion of the market, accounting for three out of four real estate transactions. In the Williamsburg, Virginia market, Coldwell Banker Traditions has measured their cash buys at 33% in 2014 – accounting for one in every three home purchases being paid for in cash.
Owner Occupied Buyers Pay Cash
The National Association of Realtors (NAR) reports that less real estate investor cash buys are occurring, while property buyers looking for a primary residence who are willing to pay in cash are on the rise. This includes retired couples and individuals who sell their homes and purchase a new one with the equity gained over the past several decades. It’s also reported that 50% of millennial children will ask their parents to help buy them a home. Speculatively - many millennial children may be paying cash for homes. For all age groups, nothing compares to the security of home ownership.
Hurd says that many people are searching for 100% mortgage financing. “It is not available to all home buyers,” Hurd cautions. To qualify, home buyers must be Veterans, first time homebuyers or homebuyers in rural areas.
Down payments commonly range from 5-50% of home value. “I do have buyers put a big chunk of cash down,” observed Hurd. “It varies. I would say that more than 50% of the people I work with put 5% or less down. Many are Veterans who do not need a down payment or they are in transition and do not have cash at the ready,” commented Hurd.
Heftier down payments are common, too. Hurd says, “Occasionally I have a client that puts down 20% or 30% or even 50% on a home purchase. Many people I work with could have bought a house with cash only, but because interest rates hover above 4% it is still enticing to have a mortgage and receive a federal tax break each year.”
Foreign Buyers Invest Cash in Real Estate
The NAR also reports foreign purchases of U.S. real estate often occur in cash. For example, in Miami, Florida, Latino families and individuals are likely to purchase homes for cash. In California those of Asian ancestry often pay in cash, too. Each ethnic group wants their stake in the American dream - and they want it without a mortgage.
In brisk real estate markets where inventories are low - such as urban areas like San Francisco, Boston and Washington D.C. - some buyers believe if they pay in cash, they will go in front of financed buyers. “From my perspective, a cash buyer may be chosen for the contract in front of a financed buy,” says Hurd. “ It is a generally accepted perception that the home purchase will close much faster if it is not reliant upon financing,” says Hurd. Cash buyers are not receiving the deep discounts (such as the example provided by Starke) in real estate as they did in years past. Still, in some markets where inventories are low, cash deals may be rather enticing to sellers to speed up the sale.
Cash home purchases are certainly an optimum way to buy if the resources are available. Many finance experts usually recommend using only a portion of savings to purchase a home. So, in some cases, a 30-50% down payment may suffice, especially with today’s mortgage rates still low enough to be enticing.
Learn more about homes for sale in Williamsburg, Virginia. Visit http://www.voncannonrealestate.com.
Showing posts with label homes for sale williamsburg. Show all posts
Showing posts with label homes for sale williamsburg. Show all posts
Monday, June 30, 2014
Thursday, May 29, 2014
For Sale by Owner: Off MLS Listing is Risky Business
Since 2013, there has been an increase in sellers pre-selling
properties and listing them off the Multiple Listing Services(MLS). Core
Logic reported that in 2013, 53% of real estate transactions conducted
in the U.S. were not listed on the MLS. Most sellers do not hold a real
estate license, and are not permitted to use the MLS - the standard
listing portal for a licensed real estate agent. Although buyer’s agents
are willing to work with For Sale by Owner (FSBO) listings, they are
not permitted to give the seller any advice or access to marketing.
Sellers who want to list a FSBO may be losing out on tens of thousands of dollars in real market value on a property, especially if they list properties without an up-to-date appraisal or current market research. Often a seller will list a FSBO based on the sale price of a neighbor’s home, which may or may not be the best choice for a comparable property. A local real estate agent lists properties continuously in their regional sales area and is best suited to offer a market comparison in the neighborhoods he or she covers. Remember, tax assessments, though readily available, are not the best tool for gauging a property’s true market value at any give point in time.
One nuance about FSBO sales that should give sellers pause is the fact that an experienced buyer’s agent may hold the upper hand in a FSBO real estate transaction. Why? The seller may not be familiar with state laws and fiduciary codes and/or ramifications of contract issues that crop up during negotiations. Even with a lawyer creating a real estate contract on a property, the final outcome of a For Sale By Owner (FSBO) real estate sale may be held up over a variety of issues. Experienced REALTORS know how to circumvent these roadblocks quickly and keep a property transaction on track.
FSBO is Not Equal to a REALTOR’s Advertising Potential
Working with a professional REALTOR is worth the commission under these circumstances. A FSBO has a limited opportunity for marketing, becoming more heavily reliant upon web real estate portal sites such as Zillow.com. With a seasoned agent, advertising penetration for a property is far greater. For example, I list my properties for sale in Williamsburg, Virginia on four MLS websites. This gives my sellers and extensive area of coverage so that other agents can see the listing and buyers on the MLS can also see it. My MLS listings are also republished on Realtor.com, which is owned by the National Association of Realtors and is also a reputable website in the industry. My broker, Coldwell Banker Traditions, also has a listing mechanism on its locally based website, where my client properties receive excellent visibility. Not all REALTORS list properties this widely on the Web, so check with individual real estate agents and ask them for specific information about advertising provided for client listings through MLS and other venues on the Web.
There are other disadvantages to listing properties without an agent. If the owner happens to miss a showing with a potential buyer, he or she may miss the opportunity to sell a property altogether. For real estate sales in my territory, Southeastern Virginia, an owner is not permitted to use legal forms created by the Virginia Association for Realtors (VAR), unless they are licensed. Real estate forms are formally copyrighted by the VAR and sanctioned for use only by membership. This puts the seller at another distinct disadvantage in the transaction. Having to create legal forms anew is not only time consuming, it may increase costs for an attorney.
Besides some of the more obvious advantages to listing with a licensed real estate agent, there is also a common misconception that the use of a real estate lawyer will save money versus paying agents’ commissions. The seller still has to pay the buyers agent fees (which is variable by state and type of real estate transaction). All FSBO sales contracts must be created and finalized with a lawyer. The sales process involves having the buyer read the contract and make changes. The lawyer revises the contract appropriately and it is presented at closing. Lawyers in Virginia charge far more to create an original contract (in my experience) than the commission on the seller’s side - in most instances. Sellers who want to go it alone should seriously consider the lawyer’s fees may be more expensive, and are largely unpredictable, depending upon the number of legal forms needed, length of negotiations and additional contract requirements.
Sellers need to forgo the FSBO and get smart in a real estate market that is definitely on the move in many regions of the U.S. Pricing is trending higher in the 2014 market and inventories are low in many markets. So sellers need to have expert advice on pricing real estate at current market value now - more than ever. In addition to potential loss of profits from home sale, the seller may easily run up against legal and contract issues that may not be quickly resolved. Worse yet, these matters may be settled too late to adhere to the time limits on certain loans such as FHA and USDA. If the seller does not know what they’re doing and timeframes are not heeded, this can cause the buyer to forfeit a loan. In turn, the property loses a good buyer and valuable time on the market.
Be wise and don’t engage in risky business – listing a property off the MLS or without a licensed agent. It is best to have the representation of a licensed agent for a variety of reasons. The main reasons are: the seller will have expert advice, will most likely sell the property sooner and the property will command a fair market price. Say no to FSBO. Instead, seek out a capable real estate professional in your region for piece of mind.
Visit: http://www.voncannonrealestate.com/articles/for-sale-by-owner-off-mls-listing-is-risky-business.php
Sellers who want to list a FSBO may be losing out on tens of thousands of dollars in real market value on a property, especially if they list properties without an up-to-date appraisal or current market research. Often a seller will list a FSBO based on the sale price of a neighbor’s home, which may or may not be the best choice for a comparable property. A local real estate agent lists properties continuously in their regional sales area and is best suited to offer a market comparison in the neighborhoods he or she covers. Remember, tax assessments, though readily available, are not the best tool for gauging a property’s true market value at any give point in time.
One nuance about FSBO sales that should give sellers pause is the fact that an experienced buyer’s agent may hold the upper hand in a FSBO real estate transaction. Why? The seller may not be familiar with state laws and fiduciary codes and/or ramifications of contract issues that crop up during negotiations. Even with a lawyer creating a real estate contract on a property, the final outcome of a For Sale By Owner (FSBO) real estate sale may be held up over a variety of issues. Experienced REALTORS know how to circumvent these roadblocks quickly and keep a property transaction on track.
FSBO is Not Equal to a REALTOR’s Advertising Potential
Working with a professional REALTOR is worth the commission under these circumstances. A FSBO has a limited opportunity for marketing, becoming more heavily reliant upon web real estate portal sites such as Zillow.com. With a seasoned agent, advertising penetration for a property is far greater. For example, I list my properties for sale in Williamsburg, Virginia on four MLS websites. This gives my sellers and extensive area of coverage so that other agents can see the listing and buyers on the MLS can also see it. My MLS listings are also republished on Realtor.com, which is owned by the National Association of Realtors and is also a reputable website in the industry. My broker, Coldwell Banker Traditions, also has a listing mechanism on its locally based website, where my client properties receive excellent visibility. Not all REALTORS list properties this widely on the Web, so check with individual real estate agents and ask them for specific information about advertising provided for client listings through MLS and other venues on the Web.
There are other disadvantages to listing properties without an agent. If the owner happens to miss a showing with a potential buyer, he or she may miss the opportunity to sell a property altogether. For real estate sales in my territory, Southeastern Virginia, an owner is not permitted to use legal forms created by the Virginia Association for Realtors (VAR), unless they are licensed. Real estate forms are formally copyrighted by the VAR and sanctioned for use only by membership. This puts the seller at another distinct disadvantage in the transaction. Having to create legal forms anew is not only time consuming, it may increase costs for an attorney.
Besides some of the more obvious advantages to listing with a licensed real estate agent, there is also a common misconception that the use of a real estate lawyer will save money versus paying agents’ commissions. The seller still has to pay the buyers agent fees (which is variable by state and type of real estate transaction). All FSBO sales contracts must be created and finalized with a lawyer. The sales process involves having the buyer read the contract and make changes. The lawyer revises the contract appropriately and it is presented at closing. Lawyers in Virginia charge far more to create an original contract (in my experience) than the commission on the seller’s side - in most instances. Sellers who want to go it alone should seriously consider the lawyer’s fees may be more expensive, and are largely unpredictable, depending upon the number of legal forms needed, length of negotiations and additional contract requirements.
Sellers need to forgo the FSBO and get smart in a real estate market that is definitely on the move in many regions of the U.S. Pricing is trending higher in the 2014 market and inventories are low in many markets. So sellers need to have expert advice on pricing real estate at current market value now - more than ever. In addition to potential loss of profits from home sale, the seller may easily run up against legal and contract issues that may not be quickly resolved. Worse yet, these matters may be settled too late to adhere to the time limits on certain loans such as FHA and USDA. If the seller does not know what they’re doing and timeframes are not heeded, this can cause the buyer to forfeit a loan. In turn, the property loses a good buyer and valuable time on the market.
Be wise and don’t engage in risky business – listing a property off the MLS or without a licensed agent. It is best to have the representation of a licensed agent for a variety of reasons. The main reasons are: the seller will have expert advice, will most likely sell the property sooner and the property will command a fair market price. Say no to FSBO. Instead, seek out a capable real estate professional in your region for piece of mind.
Visit: http://www.voncannonrealestate.com/articles/for-sale-by-owner-off-mls-listing-is-risky-business.php
Friday, May 16, 2014
Renovation loans: FHA 203(k), Fannie's Homestyle Renovation Mortgage & Conventional Rehab Loans
By Elaine VonCannon, ABR, SRES, Associate Broker, Notary, Team Leader, Property Manager, Award Winning Agent
With a plethora of homes still sold as short sales and foreclosures, renovation loans are increasingly popular with homebuyers. Many family dwellings are being redesigned for additional family members these days. As rental housing costs rise, families decide to live together and save money. There are multiple situations that could apply: boomerang children, aging parents, or divorced with grandchildren - the family home is in need of expansion or renovation to ensure everyone fits comfortably.
Rehab loans such as the FHA 203(k) program or the Fannie Mae HomeStyle Renovation Mortgage are the perfect answer for some first time homebuyers, too. If the borrower qualifies for the 203(k) program, the buyer can borrow based on what the house is expected to be worth after the home rehab is completed.
I will summarize some common home renovation loans available to consumers and some of the requirements for each. Interest rates are subject to vary for each loan detailed, so be sure to check with a qualified loan officer first, before embarking on a home purchase or refinance.
Renovation loans are effective for consumers and banks and mortgage companies because they offer the necessary resources to remove foreclosures from the market and redo them. Plus, these loans provide first time homebuyers, (who have historically been 30-40% of a healthy real estate market), the opportunity to renovate before moving in.
FHA 203(k) Rehab Loan
FHA insured home renovation loans are more popular now then ever before, because resources for renovations are greatly needed. A streamline 203(k) loan includes less than $35,000 in renovations. For homebuyers needing over $35,000 in rehab work, a full 203(k) is necessary.
To qualify for the FHA 203(k) loan, the borrower must agree to hire a real estate consultant to assess the construction plan and sign off on each phase. The project must be completed in six months, with five draws (or payments to contractors) allowed. A list of approved property renovations is included with the loan. Many borrowers feel this loan is too complicated – or the list of renovations too restricted for their projects. But the interest rate on FHA loans is low enough to make it worthwhile.
If interested in a FHA 203 (k) loan, find a mortgage broker with experience in this type of rehab loan to complete the transaction. "FHA loans are typically available for owner occupied residences. These loans are government insured and have a more expensive mortgage insurance rate (PMI), with a 1.75% up front payment and a monthly payment of 1.35%, compared to other loan products," says Jeff Hurd, Mortgage Banker with Fidelity Bank Mortgage in Newport News, Virginia. "With conventional rehab loans, the consumer has the option to pay all of the PMI up front, monthly or have the lender pay it (LPMI)," added Hurd.
Fannie Mae's HomeStyle Renovation Mortgage
When comparing the Fannie Mae HomeStyle loan to the 203 (k), Hurd says the HomeStyle loan product offers more flexibility with repairs and renovations and in the types of homes purchased. "The Fannie Mae HomeStyle Loan offers a wider scope of renovation projects, and can be utilized on a second home and an investment property as well as a primary residence," noted Hurd.
Other advantages of the Fannie Mae HomeStyle Renovation Mortgage include less money down then conventional rehab loans (a minimum of 5%) and less cost for the mortgage insurance. "Monthly mortgage insurance payments are reduced with higher down payments and/or a good credit score above 680. The conventional Homestyle will typically present a PMI pricing advantage over FHA," says Jeff Hurd. With Fannie Mae's HomeStyle Renovation Mortgage, home purchases and improvements can be combined into one loan for virtually any property - and it doesn't have to be Fannie Mae owned. The repairs or renovations must be permanently affixed to the structure and add value to the property. Lenders have to be pre-approved to sell this product, so make certain to ask the loan officer if he or she is participating in this home finance program.
Rehab Loans – the Time is Now
Hurd says now is a great time to purchase a home with a rehab loan. "There are so many houses that may be in distress. Whether the house is bank owned, or it's a foreclosure or short sale, or a homeowner is upside down and doesn't want to put the money into a property to fix it up - there are homes to choose from. Right now homebuyers have a good opportunity to buy a house for a great price and renovate it with the financing. These rehab loan products make it easier to buy a house and complete home rehab projects at the same time, before the move in date." Chances are excellent that a consumer can purchase a property, make the necessary renovations and walk out of the transaction with equity in the home. Hurd says, "There is a market of savvy consumers ready to acquire these houses now."
The housing market has changed tremendously over the last five to seven years. Because there are still vacant properties available in this real estate market, rehab loans are a means of obtaining these properties in need of repair. Homebuyers now can expand their choices of homes to live in because they can remodel to suit their needs. Real estate investors can purchase, rehab and rent or resell the property.
Rehab loans are an excellent stimulus for the real estate market and a great way for homebuyers to purchase what they want without having to worry about liquidating cash investments or having tens of thousands of dollars in addition to a mortgage to fund home renovations.
Friday, June 22, 2012
Virginia Real Estate Professional Earns Broker License and Coldwell Banker Previews Designation
(Williamsburg, VA) Elaine VonCannon is now an Associate Broker for Coldwell Banker Traditions in Williamsburg, VA. She recently obtained her broker license from the Virginia Department of Professional and Occupational Regulation after successfully completing several educational modules, including Virginia Real Estate Law and Appraisal. In addition to obtaining her Virginia Broker License, Ms. VonCannon is an Associated Buyers Representative (ABR) and Senior Real Estate Specialist (SRES) and a seasoned property manager. She has assisted her clients in buying and selling residential and commercial real estate in Virginia for 13 years.
Elaine VonCannon has two websites where Virginia real estate listings can be viewed online, VonCannonRealEstate.com and EstatesInVirginia.com.
Coldwell Banker International named her a Coldwell Banker Previews Specialist this year, enabling her to showcase some of the most prestigious luxury real estate in Virginia to affluent buyers worldwide.
“Elaine VonCannon is a real estate professional who understands what it takes to be an industry leader and is committed to her profession,” says Sam Mayo, associate broker and director of business development for Coldwell Banker Traditions. “She recently added the titles of Associate Broker and Previews Specialist to her list of accomplishments, and we are very proud to have Elaine as part of our team,” he added.
Elaine VonCannon and John Starke, a financial advisor in Richmond, Virginia, hold joint real estate and investment seminars at churches, civic originations and for the general public. Topics include: 1031 tax free exchanges, first time home buyers, senior buyers, investment properties and Delaware Statuary Trust. Individuals learn how to take a deeper look at real estate investment strategies, re-examine them and execute new ideas for maximum profit.
Mayo also noted VonCannon, “Blends her real estate success and business knowledge with a true desire to help her customers and clients, and it doesn’t get much better than that. Elaine is to be commended for becoming a broker as well as earning her distinction as a luxury homes specialist.”
Elaine’s radio shows and televisions interviews and syndicated articles on real estate topics are easily accessible on her websites. Home buyers can sign up for a free home
Thursday, December 29, 2011
Luxury Homes for Sale in Virginia a Good Bargain
(Williamsburg, VA) Reduced pricing on real estate listings in Williamsburg and surrounding areas indicates many sellers are still over leveraged and experiencing some sort of financial hardship. Divorce, death and the necessity to relocate also create a need to sell quickly. In Virginia, there are many opportunities to find luxury homes, waterfront estates, historic homes and estate properties. Farms, farmettes, equestrian properties, homes with acreage and waterfront properties are also listed. Many properties are priced to sell and are a good value.
The pressures of the new economy are affecting real estate listings over $500,000. According to Virginia Association of Realtors (VAR), median home values in the Chesapeake Bay and Hampton Roads region of Virginia declined 9.8% since last year; homes prices in Norfolk, Virginia Beach and Chesapeake are reduced 15.9%; and in Richmond, there are 6% decreases. Northern Virginia median home sales prices have increased by 1%.
Foreclosures and short sales are plentiful in luxury real estate. Coldwell Banker recently unveiled a new program for luxury buyers and sellers: Coldwell Banker Previews. This allows luxury buyers a detailed look at exclusive properties. Many real estate professionals recommend casting a wider geographic area for a home search to find the best deals.
Elaine VonCannon, a Coldwell Banker REALTOR, recommends taking a closer look at homes for sale in several areas of Virginia. “Look at waterfront homes in Chesapeake Bay Country and estates and historic homes in Williamsburg, James City County and York County. In York, Henrico and Chesterfield Counties, buyers will find horse farms and estates with equestrian facilities for sale. High end home buyers in these areas of Virginia will find excellent bargains right now,” said VonCannon.
“Interest rates are historically low, at approximately 4% for well-qualified buyers,” said VonCannon. “This, combined with the sharp reduction in prices for luxury homes in Williamsburg, Richmond, and Tidewater Virginia, creates an excellent opportunity for home buyers,” she added.
Although median sales prices for homes are declining in some Virginia real estate markets, the number of home sales across the Commonwealth is stabilizing, according to VAR QE3 2011 report. In Richmond, Southside Virginia, Chesapeake Bay and Hampton Roads, the number of home sales has increased, indicating many real estate investors see now as a good time to buy and find values.
Visit VonCannonRealEstate or EstatesInVirginia.com to view property listings in Virginia. Or call 757-288-4685 to schedule some viewings.
The pressures of the new economy are affecting real estate listings over $500,000. According to Virginia Association of Realtors (VAR), median home values in the Chesapeake Bay and Hampton Roads region of Virginia declined 9.8% since last year; homes prices in Norfolk, Virginia Beach and Chesapeake are reduced 15.9%; and in Richmond, there are 6% decreases. Northern Virginia median home sales prices have increased by 1%.
Foreclosures and short sales are plentiful in luxury real estate. Coldwell Banker recently unveiled a new program for luxury buyers and sellers: Coldwell Banker Previews. This allows luxury buyers a detailed look at exclusive properties. Many real estate professionals recommend casting a wider geographic area for a home search to find the best deals.
Elaine VonCannon, a Coldwell Banker REALTOR, recommends taking a closer look at homes for sale in several areas of Virginia. “Look at waterfront homes in Chesapeake Bay Country and estates and historic homes in Williamsburg, James City County and York County. In York, Henrico and Chesterfield Counties, buyers will find horse farms and estates with equestrian facilities for sale. High end home buyers in these areas of Virginia will find excellent bargains right now,” said VonCannon.
“Interest rates are historically low, at approximately 4% for well-qualified buyers,” said VonCannon. “This, combined with the sharp reduction in prices for luxury homes in Williamsburg, Richmond, and Tidewater Virginia, creates an excellent opportunity for home buyers,” she added.
Although median sales prices for homes are declining in some Virginia real estate markets, the number of home sales across the Commonwealth is stabilizing, according to VAR QE3 2011 report. In Richmond, Southside Virginia, Chesapeake Bay and Hampton Roads, the number of home sales has increased, indicating many real estate investors see now as a good time to buy and find values.
Visit VonCannonRealEstate or EstatesInVirginia.com to view property listings in Virginia. Or call 757-288-4685 to schedule some viewings.
Thursday, March 10, 2011
Wineries in Virginia: Near Williamsburg, Northern Neck, and Chesapeake Bay Country
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
In Colonial Virginia, wine was a staple. The House of Burgesses, passed an Acte governing vineyards in 1619. The Twelfth Acte stated that each settler was obligated to plant at least 10 vines for the purpose of making wine on his land. The colonial settlers could not transport all of the wine and provisions they needed so they began to establish vineyards to supply the colony. The Colonial tradition of having an estate with a vineyard was widely practiced in Virginia during Colonial times. Even to this day, Virginia has well established and new vineyards, from the mountains to the sea. This article will focus on wineries in Southeastern Virginia, home to vast numbers of colonial estates, waterfront estates, plantations, country estates --- and, high quality vineyards often planted with grapes from the old world.
Athena Vineyards , 804-580-4944
http://www.atheanavineyards.com
With a grand opening scheduled for Memorial Day 2006, the three friends who began in the health care profession and opened a vineyard because they were inspired by the healthful qualities of wine will present their first vintages to the world. Athena Vineyards are located in Northumberland County. This new vineyard also hails as the first commercial vineyard in Northumberland County. With an assortment of Wiccomico Whites and some Cabernets and other varieties, Athena Vineyards has plenty of wine offerings to open its first season.
Belle Mount Vineyards, 800-335-5564
http://www.bellemount.com
Belle Mount Vineyards is in Virginia's Northern Neck, in the town of Warsaw. The parcel of land where the vineyards are located is within sight of the Rappahannock River, which feeds into the Chesapeake Bay. Belle Mount offers handcrafted wines and a unique, original selection of Chardonnay, Merlot, and Cab Franc grapes. This Northern Neck vineyard also grows the Norton grape, discovered in Richmond, Virginia. Wine tastings and tours of the vineyard and winery are free.
Bloxom Winery, Bloxom, Virginia , (757) 655-5670
http://www.virginiawines.org/wineries/bloxom.html
Take the Chesapeake Bay Bridge Tunnel from Williamsburg/Norfolk/Virginia Beach north to the Eastern Shore of Virginia. Visit old world traditions when you visit the Bloxom Winery. This 35 acre Victorian farm has six acres of wine including Chardonnay, Merlot and Cabernet. Bloxom Winery is only open from June through September from 1-6 p.m. The chocolate enthusiast can indulge in the combination of free wine tasting and chocolate confections.
Hummel Winery, Montross, Virginia , (804) 493-1544
Hummel Vineyards is tucked away near Westmoreland, in the Northern Neck of Chesapeake Bay Country. The sea air and surroundings are evocative of a country estate, with open wood beams in the traditional style sampling room. Tastings are $5 at Hummel Winery. Sandwiches and light gourmet food are also available to complement the wine.
Ingleside Vineyards, Oak Grove, Virginia, (804) 224-8687
http://www.ipwine.com
At the intersection of the Potomac and Rappahannock Rivers, Virginia's Northern Neck is rich in history and classic and contemporary wines. Ingleside Vineyard's is part of the 3,000 acre Flemer estate. Planted in the fertile river land between the Potomac and Rappahnnock, 70 acres of grapes grow to their luscious fullness in a stable climate. The Vineyard has been producing wines with awards since 1980, and is run by Charles H. Flemer's great-great grandson. Basic tastings with a souvenir glass are $2.50 and Black Label tastings are $6.00.
Oak Crest Vineyard, King George, Virginia , 540-663-2813
http://www.oakcrestwinery.com/
There are approximately 100 vineyards in Virginia, and each has its own unique approach. Oak Crest Vineyard is founded by a family that has been handcrafting wines since the 1960s. The Conrad Brandts opened the Winery in 2002, but it seems years have gone into the making of these grape connoisseurs. Known for their Bordeaux reds and Rhine style whites, this winery seems to have a healthy offering of Cabernets and Merlots and has just added some sweet blush wines to the menu. The tasting room is a traditional post and beam room. Tastings and tours are free. The winery is only open April 1 - Decmeber 23rd.
White Fences Vineyard and Winery, Irvington, Virginia, (804) 438-5559 http://www.northernneckwinetrail.com/whitefences.html
The first White Fences vintages were presented at the Irvington Stomp in September 2005. White Fences is slated to open in the summer of 2006. Self-guided tours of the vineyards are available.
The Williamsburg Winery, Williamsburg, Virginia (757) 229-0999 http://www.williamsburgwinery.com
This Williamsburg favorite has been producing wine since 1988. The Williamsburg Winery is known for its signature vintage, Governor's White, "the best selling wine made in Virginia". Sample some reserve stocks and varietal blends at this winery, too. Dessert wines include Late Harvest Vidal, Blackberry Merlot, and Rasberry Merlot. The Williamsburg Winery is close to downtown Williamsburg, just off Route 199 West towards Jamestown.
For information on properties in the Greater Williamsburg and Southeastern Virginia area, visit http://www.voncannonrealestate.com. Or, to find out about colonial estates, country estates, waterfront estates, farmettes, equestrian estates, estates with vineyards, historic estates and more, visit http://www.virginia-estates.com.
In Colonial Virginia, wine was a staple. The House of Burgesses, passed an Acte governing vineyards in 1619. The Twelfth Acte stated that each settler was obligated to plant at least 10 vines for the purpose of making wine on his land. The colonial settlers could not transport all of the wine and provisions they needed so they began to establish vineyards to supply the colony. The Colonial tradition of having an estate with a vineyard was widely practiced in Virginia during Colonial times. Even to this day, Virginia has well established and new vineyards, from the mountains to the sea. This article will focus on wineries in Southeastern Virginia, home to vast numbers of colonial estates, waterfront estates, plantations, country estates --- and, high quality vineyards often planted with grapes from the old world.
Athena Vineyards , 804-580-4944
http://www.atheanavineyards.com
With a grand opening scheduled for Memorial Day 2006, the three friends who began in the health care profession and opened a vineyard because they were inspired by the healthful qualities of wine will present their first vintages to the world. Athena Vineyards are located in Northumberland County. This new vineyard also hails as the first commercial vineyard in Northumberland County. With an assortment of Wiccomico Whites and some Cabernets and other varieties, Athena Vineyards has plenty of wine offerings to open its first season.
Belle Mount Vineyards, 800-335-5564
http://www.bellemount.com
Belle Mount Vineyards is in Virginia's Northern Neck, in the town of Warsaw. The parcel of land where the vineyards are located is within sight of the Rappahannock River, which feeds into the Chesapeake Bay. Belle Mount offers handcrafted wines and a unique, original selection of Chardonnay, Merlot, and Cab Franc grapes. This Northern Neck vineyard also grows the Norton grape, discovered in Richmond, Virginia. Wine tastings and tours of the vineyard and winery are free.
Bloxom Winery, Bloxom, Virginia , (757) 655-5670
http://www.virginiawines.org/wineries/bloxom.html
Take the Chesapeake Bay Bridge Tunnel from Williamsburg/Norfolk/Virginia Beach north to the Eastern Shore of Virginia. Visit old world traditions when you visit the Bloxom Winery. This 35 acre Victorian farm has six acres of wine including Chardonnay, Merlot and Cabernet. Bloxom Winery is only open from June through September from 1-6 p.m. The chocolate enthusiast can indulge in the combination of free wine tasting and chocolate confections.
Hummel Winery, Montross, Virginia , (804) 493-1544
Hummel Vineyards is tucked away near Westmoreland, in the Northern Neck of Chesapeake Bay Country. The sea air and surroundings are evocative of a country estate, with open wood beams in the traditional style sampling room. Tastings are $5 at Hummel Winery. Sandwiches and light gourmet food are also available to complement the wine.
Ingleside Vineyards, Oak Grove, Virginia, (804) 224-8687
http://www.ipwine.com
At the intersection of the Potomac and Rappahannock Rivers, Virginia's Northern Neck is rich in history and classic and contemporary wines. Ingleside Vineyard's is part of the 3,000 acre Flemer estate. Planted in the fertile river land between the Potomac and Rappahnnock, 70 acres of grapes grow to their luscious fullness in a stable climate. The Vineyard has been producing wines with awards since 1980, and is run by Charles H. Flemer's great-great grandson. Basic tastings with a souvenir glass are $2.50 and Black Label tastings are $6.00.
Oak Crest Vineyard, King George, Virginia , 540-663-2813
http://www.oakcrestwinery.com/
There are approximately 100 vineyards in Virginia, and each has its own unique approach. Oak Crest Vineyard is founded by a family that has been handcrafting wines since the 1960s. The Conrad Brandts opened the Winery in 2002, but it seems years have gone into the making of these grape connoisseurs. Known for their Bordeaux reds and Rhine style whites, this winery seems to have a healthy offering of Cabernets and Merlots and has just added some sweet blush wines to the menu. The tasting room is a traditional post and beam room. Tastings and tours are free. The winery is only open April 1 - Decmeber 23rd.
White Fences Vineyard and Winery, Irvington, Virginia, (804) 438-5559 http://www.northernneckwinetrail.com/whitefences.html
The first White Fences vintages were presented at the Irvington Stomp in September 2005. White Fences is slated to open in the summer of 2006. Self-guided tours of the vineyards are available.
The Williamsburg Winery, Williamsburg, Virginia (757) 229-0999 http://www.williamsburgwinery.com
This Williamsburg favorite has been producing wine since 1988. The Williamsburg Winery is known for its signature vintage, Governor's White, "the best selling wine made in Virginia". Sample some reserve stocks and varietal blends at this winery, too. Dessert wines include Late Harvest Vidal, Blackberry Merlot, and Rasberry Merlot. The Williamsburg Winery is close to downtown Williamsburg, just off Route 199 West towards Jamestown.
For information on properties in the Greater Williamsburg and Southeastern Virginia area, visit http://www.voncannonrealestate.com. Or, to find out about colonial estates, country estates, waterfront estates, farmettes, equestrian estates, estates with vineyards, historic estates and more, visit http://www.virginia-estates.com.
Saturday, February 5, 2011
Another Bank with Issues: Introducing USAA’s Mortgage Program
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
The topic of the last article I wrote and syndicated was inconsistencies with home loan financing. It featured Bank of America and Homesteps and Homepath, the FHA home loan programs. Now the spotlight has shifted to USAA mortgages.
As a real estate agent in the Williamsburg, Virginia market for nearly a decade, I have ample experience with mortgage companies and banks. This is not the first time my clients had issues with USAA.
Recently, I had a homebuyer who was purchasing a short sale. USAA promised a low interest rate, which motivated the buyer to use their home loan services. Two weeks prior to closing USAA became very demanding, and my client had to jump thru hoops to get the loan done. This was a professional couple with a very high credit score. They could have taken their home purchase to any mortgage company or bank. Why do the banks continue to scrutinize even the best borrowers?
Now, it is time for the icing on the cake. My current client is using USAA after a bad start with -- OH YES -- the infamous Bank of America (who I might add holds the paper on several of his loans). Bank of America informed him eight days from closing they could not do the loan. The homebuyer had to search for another lender a week before closing. In the beginning, I recommended he use another lender, not USAA. I cited examples of local mortgage lenders who had clients come back to them in tears after treatment at the hands of USAA employees.
Did you know one small mark on someone’s credit can become a large issue these days when applying for a mortgage? This is ridiculous! The USAA loan officer working on this particular loan was Laura Perez. She blames underwriting for not making the loan -- though I am inclined to think it is her. USAA is hung up over a $187.00 bill that my client disputed and is awaiting an answer on.
Laura Perez or the underwriter at USAA does not like the way the bill says paid in full. My client sent Perez two statements on this small bill that had been paid. “The document I sent yesterday is the new "Paid in Full" document, which doesn't say, "releases me of all debt, etc." noted my client.
In essence, this home purchase is stuck in limbo now, over a $187 bill. Until the credit issue drops from this client’s record, USAA will not finalize a loan. According to Laura Perez, “That's not in my control. And, it can take 45 days before I can even continue.” Perez also requested documentation that my client has provided.
Here is the startling information. This bill and credit dispute began four years ago. This client purchased two investment properties in Williamsburg and the credit dispute was not an issue for these closings. Why is it an issue now, with USAA?
This homebuyer is a solid investor, and a good client. I manage two homes for my client here in Williamsburg. He also owns another home out-of-state that he had to rent due to the market and relocation by his employer.
As a last resort, I have emailed Laura Perez and requested to speak to her supervisor. It is no surprise that I have not heard back, and that no information is forthcoming. This home loan is now hung up. It is truly just another example of banking bureaucracy.
If we examine the examples carefully, it is obvious that the inability of the banks and mortgage companies to push loans for qualified buyers through in a timely manner has helped to slow down the real estate market considerably. Until the lenders either staff up with qualified employees or apply consistent formulas and rules to loan applications, this financial quagmire we are currently in may take some time to dissipate.
Visit http://www.voncannonrealestate.com for more information.
The topic of the last article I wrote and syndicated was inconsistencies with home loan financing. It featured Bank of America and Homesteps and Homepath, the FHA home loan programs. Now the spotlight has shifted to USAA mortgages.
As a real estate agent in the Williamsburg, Virginia market for nearly a decade, I have ample experience with mortgage companies and banks. This is not the first time my clients had issues with USAA.
Recently, I had a homebuyer who was purchasing a short sale. USAA promised a low interest rate, which motivated the buyer to use their home loan services. Two weeks prior to closing USAA became very demanding, and my client had to jump thru hoops to get the loan done. This was a professional couple with a very high credit score. They could have taken their home purchase to any mortgage company or bank. Why do the banks continue to scrutinize even the best borrowers?
Now, it is time for the icing on the cake. My current client is using USAA after a bad start with -- OH YES -- the infamous Bank of America (who I might add holds the paper on several of his loans). Bank of America informed him eight days from closing they could not do the loan. The homebuyer had to search for another lender a week before closing. In the beginning, I recommended he use another lender, not USAA. I cited examples of local mortgage lenders who had clients come back to them in tears after treatment at the hands of USAA employees.
Did you know one small mark on someone’s credit can become a large issue these days when applying for a mortgage? This is ridiculous! The USAA loan officer working on this particular loan was Laura Perez. She blames underwriting for not making the loan -- though I am inclined to think it is her. USAA is hung up over a $187.00 bill that my client disputed and is awaiting an answer on.
Laura Perez or the underwriter at USAA does not like the way the bill says paid in full. My client sent Perez two statements on this small bill that had been paid. “The document I sent yesterday is the new "Paid in Full" document, which doesn't say, "releases me of all debt, etc." noted my client.
In essence, this home purchase is stuck in limbo now, over a $187 bill. Until the credit issue drops from this client’s record, USAA will not finalize a loan. According to Laura Perez, “That's not in my control. And, it can take 45 days before I can even continue.” Perez also requested documentation that my client has provided.
Here is the startling information. This bill and credit dispute began four years ago. This client purchased two investment properties in Williamsburg and the credit dispute was not an issue for these closings. Why is it an issue now, with USAA?
This homebuyer is a solid investor, and a good client. I manage two homes for my client here in Williamsburg. He also owns another home out-of-state that he had to rent due to the market and relocation by his employer.
As a last resort, I have emailed Laura Perez and requested to speak to her supervisor. It is no surprise that I have not heard back, and that no information is forthcoming. This home loan is now hung up. It is truly just another example of banking bureaucracy.
If we examine the examples carefully, it is obvious that the inability of the banks and mortgage companies to push loans for qualified buyers through in a timely manner has helped to slow down the real estate market considerably. Until the lenders either staff up with qualified employees or apply consistent formulas and rules to loan applications, this financial quagmire we are currently in may take some time to dissipate.
Visit http://www.voncannonrealestate.com for more information.
Wednesday, February 2, 2011
Banking Backlogs and Inconsistencies Plague the Mortgage System
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
As a REALTOR in Williamsburg, VA, I have seen many of inconsistencies with mortgage companies during a down market. Frankly, this frustrates buyers and sellers, me, my staff and colleagues.
I have mortgage company incompetencies, slowdowns and backlogs to share. I have collected some stories from other agents in my RE/Max Capital office in Williamsburg, too. These snafus in the mortgage approval system impact buyers and sellers in a negative way.
Short Sales Frustrations
It is common for a seller to short sale a property, and to have the lender(s) make the seller wait six months for approval - and then deny it! More often than not this crucial decision leaves the seller in financial ruins. The sale of the home is never closed, and the property now exists as bank 'inventory' and may not even hit the real estate market for a year or two. Wasting time on short sales leaves homebuyers and home sellers hung-up in financial limbo, and real estate agents without a closed deal. This cannot be good for the economy.
FHA Owned Properties: HomeSteps and HomePath
The FHA is a government agency, backed by tax dollars. If a buyer happens to put an offer on an FHA owned property, they have to use the recommended program. The federal government, in its infinite wisdom, has instituted the HomeSteps program through Freddie Mac and HomePath through Fannie Mae as public loan programs for the home buyer to help assist in the process of closing deals on FHA owned properties. Private lenders work through the program while adhering to government guidelines.
Though the HomePath and HomeStep Programs are enticing for what they offer, the process is slow and unwieldy. Some real estate agents have found the formula applied to each loan approval is not always the same. One agent in my office had a buyer turned down because HomePath indicated they did not have enough income. When the agent confronted the loan officer, she wanted to know why the 10-month income verification was not applied, instead of 12-month verification. She said her clients would qualify with a 10-month formula, and the loan officer agreed it was allowed. Her complaint is that formulas are not being applied consistently. Even those with good credit and stable work histories are finding it hard to close on HomePath loans.
HomePath Lending Program
Fannie Mae's HomePath program offers a traditional mortgage with 3% down, and no appraisal or premium mortgage insurance (PMI) is required. In addition, Fannie Mae offers another 3% down loan that includes home purchase and light to moderate renovations on primary or second homes or investment properties. A separate loan funds manufactured homes with the same 3% down payment.
HomeSteps Lending Program
The Freddie Mac Loan Program, HomeSteps, is stricter. The HomeSetps website recommends a 5% down payment with the possibility of qualifying for special programs offering down payment assistance. An appraisal is required on HomeSteps property purchases. Only certain homes will qualify for this program. A public review on the HomeSteps loan program is just as discouraging as HomePath. According to one buyer who complained publicly on CityData.com, the lender was Wells Fargo and the buyers made an initial offer on a Homesteps property, then made a lower offer once it was determined the house had 'illegal problems.' She inquires, "Is it normal to wait three weeks for a reply?"
Often buyers become frustrated with these slow moving property deals and move on. More often then not, the sale never closes.
Bank of America Backlog on Foreclosure Contract & Loan Approval
The Bank of America foreclosure department also drags its feet on closing real estate sales. I had a buyer ready to close on a Bank of America owned foreclosure and it took them two months to produce a contract. My buyer had an 800 credit score, but it took so long to approve his application, he became frustrated and pulled money out of another investment to pay cash for the property. I was lucky he had assets and was not totally reliant upon bank financing.
Bank of America Loan to Income Ratio Askew?
Another client I had was prepared to close on a property with Bank of America financing and he had a 780 credit score. The loan officer waited until one week before closing to inform him he did not qualify because his debt to income ratio was too high. When we considered lending alternatives, five other banks approved his loan, and even the USAA approved it. Why was Bank of America's loan to income ratio different than the rest?
The backlog in application requests, slow customer service, and inconsistencies with loan approvals are all reasons for concern about the mortgage lending industry today. Everyone involved in closing real estate deals becomes frustrated: real estate agents, buyers, sellers, lawyers and contractors. Even the federal government has become suspicious of Bank of America's (and other mortgage lenders) incomplete foreclosure paperwork and processes.
Though the federal government has been investigating some issues, lender inconsistencies and slow or no customer service are rampant in this real estate market. Buyers need to build extra time into their home sales process and agents need to exercise patience and attention to details for property deals to close.
For more information about purchasing bank owned properties, residential or commercial properties, or listing properties for sale, visit http://www.voncannonrealestate.com.
As a REALTOR in Williamsburg, VA, I have seen many of inconsistencies with mortgage companies during a down market. Frankly, this frustrates buyers and sellers, me, my staff and colleagues.
I have mortgage company incompetencies, slowdowns and backlogs to share. I have collected some stories from other agents in my RE/Max Capital office in Williamsburg, too. These snafus in the mortgage approval system impact buyers and sellers in a negative way.
Short Sales Frustrations
It is common for a seller to short sale a property, and to have the lender(s) make the seller wait six months for approval - and then deny it! More often than not this crucial decision leaves the seller in financial ruins. The sale of the home is never closed, and the property now exists as bank 'inventory' and may not even hit the real estate market for a year or two. Wasting time on short sales leaves homebuyers and home sellers hung-up in financial limbo, and real estate agents without a closed deal. This cannot be good for the economy.
FHA Owned Properties: HomeSteps and HomePath
The FHA is a government agency, backed by tax dollars. If a buyer happens to put an offer on an FHA owned property, they have to use the recommended program. The federal government, in its infinite wisdom, has instituted the HomeSteps program through Freddie Mac and HomePath through Fannie Mae as public loan programs for the home buyer to help assist in the process of closing deals on FHA owned properties. Private lenders work through the program while adhering to government guidelines.
Though the HomePath and HomeStep Programs are enticing for what they offer, the process is slow and unwieldy. Some real estate agents have found the formula applied to each loan approval is not always the same. One agent in my office had a buyer turned down because HomePath indicated they did not have enough income. When the agent confronted the loan officer, she wanted to know why the 10-month income verification was not applied, instead of 12-month verification. She said her clients would qualify with a 10-month formula, and the loan officer agreed it was allowed. Her complaint is that formulas are not being applied consistently. Even those with good credit and stable work histories are finding it hard to close on HomePath loans.
HomePath Lending Program
Fannie Mae's HomePath program offers a traditional mortgage with 3% down, and no appraisal or premium mortgage insurance (PMI) is required. In addition, Fannie Mae offers another 3% down loan that includes home purchase and light to moderate renovations on primary or second homes or investment properties. A separate loan funds manufactured homes with the same 3% down payment.
HomeSteps Lending Program
The Freddie Mac Loan Program, HomeSteps, is stricter. The HomeSetps website recommends a 5% down payment with the possibility of qualifying for special programs offering down payment assistance. An appraisal is required on HomeSteps property purchases. Only certain homes will qualify for this program. A public review on the HomeSteps loan program is just as discouraging as HomePath. According to one buyer who complained publicly on CityData.com, the lender was Wells Fargo and the buyers made an initial offer on a Homesteps property, then made a lower offer once it was determined the house had 'illegal problems.' She inquires, "Is it normal to wait three weeks for a reply?"
Often buyers become frustrated with these slow moving property deals and move on. More often then not, the sale never closes.
Bank of America Backlog on Foreclosure Contract & Loan Approval
The Bank of America foreclosure department also drags its feet on closing real estate sales. I had a buyer ready to close on a Bank of America owned foreclosure and it took them two months to produce a contract. My buyer had an 800 credit score, but it took so long to approve his application, he became frustrated and pulled money out of another investment to pay cash for the property. I was lucky he had assets and was not totally reliant upon bank financing.
Bank of America Loan to Income Ratio Askew?
Another client I had was prepared to close on a property with Bank of America financing and he had a 780 credit score. The loan officer waited until one week before closing to inform him he did not qualify because his debt to income ratio was too high. When we considered lending alternatives, five other banks approved his loan, and even the USAA approved it. Why was Bank of America's loan to income ratio different than the rest?
The backlog in application requests, slow customer service, and inconsistencies with loan approvals are all reasons for concern about the mortgage lending industry today. Everyone involved in closing real estate deals becomes frustrated: real estate agents, buyers, sellers, lawyers and contractors. Even the federal government has become suspicious of Bank of America's (and other mortgage lenders) incomplete foreclosure paperwork and processes.
Though the federal government has been investigating some issues, lender inconsistencies and slow or no customer service are rampant in this real estate market. Buyers need to build extra time into their home sales process and agents need to exercise patience and attention to details for property deals to close.
For more information about purchasing bank owned properties, residential or commercial properties, or listing properties for sale, visit http://www.voncannonrealestate.com.
Wednesday, November 24, 2010
Look Past the Bottom Line for a Property's Potential
This year, investment in the stock market is making many downright jittery. Though overall the stock market does seem to be hovering around the 10,000 mark, many investors are plagued with uncertainty about short and long term investments in the stock market. Will stocks go up or down this week? Is now to time to keep money in the market? Or take money out of the stock market?
As a real estate professional, I always advise people to continue to invest in property. With so many bank owned properties flooding many different markets, real estate investors are actively purchasing homes and investment properties and obtaining some great deals right now.
John Starke, an Investment Advisor and Financial Principle with American Beacon Partners, says that many investors have grown tired of the risk involved in purchasing equities, mutual funds, and other types of investments. Prior to the sharp downturn in the market in 2008, investors’ goals were to accrue money through appreciation. “Rather than nervously watch their portfolios go up and down, investors want a more stable income,” noted Starke. He sees a rise in interest in Real Estate Investment Trusts (REITs), Tax Free and Corporate Bonds, and even some Corporate CDs. “Many investors are pulling their money from equities and mutual funds and opting for investments that pay a decent, regular return on their money,” said Starke.
In my everyday real estate transactions, I see investors pulling large sums of money from the stock market and putting it into the purchase of homes and properties in Virginia. I have taken the time to ask real estate investors their opinion about stock market investments. Many have decided that the stock market is not for them right now. One investor, J. D., purchased a property in King William County, Virginia that was in foreclosure for $90,000. She will spend approximately $4,000 to prepare the property for the rental market and be able to collect a monthly income of $1,000 from her investment. J.D. told me “I feel the time is right to start investing in real estate again. I stopped four years ago when property prices got out of hand. I intend to do even more real estate investment now.”
Another client, who plans to retire in a few years, is selling one commercial property investment in order to purchase a strip mall in the Western Virginia town where he plans to retire. He will pay the purchase price and invest approximately $40,000 into the strip mall to prepare it for the commercial rental market. He told me, “I am tired of having a business that I have to work at everyday. I want to have an investment that will work for me as I am planning to retire in about two years.” His upcoming shift in lifestyle is motivation for his new commercial property investment. Note that he’s not selling one business and putting the money into the market. This may have been the trend for a retiree five years ago – but not in the new economy.
Finally, H.G. in Hampton, Virginia made a wise move with money he once had in the stock market. He purchased a condominium for $50,000, invested $2,500 in the property renovations, and is now receiving $850 per month in rental income for the unit. HG said, “I am making more of a return from my property investment than I would in the stock market, and I also receive a tax deduction to boot.”
There are of course risks in real estate investments. A tenant could default on the rental agreement, or a property could remain vacant for months on end. That is why it is imperative that real estate investors hire experienced and knowledgeable property managers to maximize their investment. All of the property investors mentioned in this article are using my property management services for their real estate investments. Other risks include unforeseen maintenance and repair issues. This is why it is important for property investors to put a portion of their profits aside to reinvest in the home, condominium or townhouse they purchase.
Where property investment is concerned, even these risks, when anticipated and well-planned for, are small compared to the uncertainty of stock investments.
Shawn Tully, Senior Editor at Large for Fortune magazine, published “2010's Coming Stock Market Crash: 1987 all Over Again” in May 2010. He states that stocks are still overpriced. He predicts a low return on investment (or a loss) as an inevitable outcome of this scenario. Tully bolsters his opinion with these astute observations: “Here's how I see the odds. The chances are about one in three that we suffer a huge, wrenching correction in the next year or two similar to the one in 1987. That possibility is so high because stocks are so startlingly expensive. Another high probability event is that markets go on a long sideways grind, with smaller drops along the way. What's extremely unlikely is that the market rises substantially from current levels and stays there for any extended period.”
Experts within the financial industry may be reluctant to put forth the strong opinion that Tully articulates. Still, there is no denying that investors have undergone a major shift in perspective since the financial crisis of late 2008 culminated in a recession, took hold of the United States and spread to other countries.
People will always need a place to live. With more and more families sadly experiencing foreclosure and dislocation, renting will be their most likely option. More rental properties will be necessary to fulfill housing demands. Investors need to take a serious look at property investment in their areas, and take steps to purchase viable homes even if they are in need of some repair or upgrades.
Visit http://VonCannonRealEstate.com to view potential investment property listings in Virginia in Williamsburg, Hampton, Newport News, Yorktown, Richmond and Northern Neck areas such as Matthews, Northumberland and King and Queen Counties.
As a real estate professional, I always advise people to continue to invest in property. With so many bank owned properties flooding many different markets, real estate investors are actively purchasing homes and investment properties and obtaining some great deals right now.
John Starke, an Investment Advisor and Financial Principle with American Beacon Partners, says that many investors have grown tired of the risk involved in purchasing equities, mutual funds, and other types of investments. Prior to the sharp downturn in the market in 2008, investors’ goals were to accrue money through appreciation. “Rather than nervously watch their portfolios go up and down, investors want a more stable income,” noted Starke. He sees a rise in interest in Real Estate Investment Trusts (REITs), Tax Free and Corporate Bonds, and even some Corporate CDs. “Many investors are pulling their money from equities and mutual funds and opting for investments that pay a decent, regular return on their money,” said Starke.
In my everyday real estate transactions, I see investors pulling large sums of money from the stock market and putting it into the purchase of homes and properties in Virginia. I have taken the time to ask real estate investors their opinion about stock market investments. Many have decided that the stock market is not for them right now. One investor, J. D., purchased a property in King William County, Virginia that was in foreclosure for $90,000. She will spend approximately $4,000 to prepare the property for the rental market and be able to collect a monthly income of $1,000 from her investment. J.D. told me “I feel the time is right to start investing in real estate again. I stopped four years ago when property prices got out of hand. I intend to do even more real estate investment now.”
Another client, who plans to retire in a few years, is selling one commercial property investment in order to purchase a strip mall in the Western Virginia town where he plans to retire. He will pay the purchase price and invest approximately $40,000 into the strip mall to prepare it for the commercial rental market. He told me, “I am tired of having a business that I have to work at everyday. I want to have an investment that will work for me as I am planning to retire in about two years.” His upcoming shift in lifestyle is motivation for his new commercial property investment. Note that he’s not selling one business and putting the money into the market. This may have been the trend for a retiree five years ago – but not in the new economy.
Finally, H.G. in Hampton, Virginia made a wise move with money he once had in the stock market. He purchased a condominium for $50,000, invested $2,500 in the property renovations, and is now receiving $850 per month in rental income for the unit. HG said, “I am making more of a return from my property investment than I would in the stock market, and I also receive a tax deduction to boot.”
There are of course risks in real estate investments. A tenant could default on the rental agreement, or a property could remain vacant for months on end. That is why it is imperative that real estate investors hire experienced and knowledgeable property managers to maximize their investment. All of the property investors mentioned in this article are using my property management services for their real estate investments. Other risks include unforeseen maintenance and repair issues. This is why it is important for property investors to put a portion of their profits aside to reinvest in the home, condominium or townhouse they purchase.
Where property investment is concerned, even these risks, when anticipated and well-planned for, are small compared to the uncertainty of stock investments.
Shawn Tully, Senior Editor at Large for Fortune magazine, published “2010's Coming Stock Market Crash: 1987 all Over Again” in May 2010. He states that stocks are still overpriced. He predicts a low return on investment (or a loss) as an inevitable outcome of this scenario. Tully bolsters his opinion with these astute observations: “Here's how I see the odds. The chances are about one in three that we suffer a huge, wrenching correction in the next year or two similar to the one in 1987. That possibility is so high because stocks are so startlingly expensive. Another high probability event is that markets go on a long sideways grind, with smaller drops along the way. What's extremely unlikely is that the market rises substantially from current levels and stays there for any extended period.”
Experts within the financial industry may be reluctant to put forth the strong opinion that Tully articulates. Still, there is no denying that investors have undergone a major shift in perspective since the financial crisis of late 2008 culminated in a recession, took hold of the United States and spread to other countries.
People will always need a place to live. With more and more families sadly experiencing foreclosure and dislocation, renting will be their most likely option. More rental properties will be necessary to fulfill housing demands. Investors need to take a serious look at property investment in their areas, and take steps to purchase viable homes even if they are in need of some repair or upgrades.
Visit http://VonCannonRealEstate.com to view potential investment property listings in Virginia in Williamsburg, Hampton, Newport News, Yorktown, Richmond and Northern Neck areas such as Matthews, Northumberland and King and Queen Counties.
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