Is Buying Your College Student a Condo A Good Idea?

February 26, 2013 By

Having a child begin college can be an extremely exciting time, but it can also be very costly. Of course, all of the expenses are justified because you want to see your kid receive a secondary education that will enrich their future, but are there ways that you can save money here and there?

One of the most effective ways to improve your family’s education budget is to buy a condo instead of paying college room and board fees or rent.

Living expenses will be the most significant cost your child faces when starting college, after tuition. Depending on the degree program, your child may need to pay living expenses for four, six, or even eight years while in school. Whether they live in a dorm, or in an apartment, they will need to pay thousands of dollars each year.

Once they graduate, they will move out of these buildings and have nothing to show for the immense amount of money they put in. Additionally, if you have younger children potentially attending the same school, the benefits can multiply exponentially as you gain equity that you can benefit from for many years after graduation.

The Benefits of Buying Instead of Renting

Obviously, you gain equity by buying, but there are many other factors to consider:

Multiple Children – If you have younger children who plan to attend the same university, this housing option will be ready and available to them when the time comes.

Rent – Your condo can help pay for itself if you allow your children to have roommates that pay rent. If you do have roommates in the property that pay rent, you will want to be sure to get the condo properly ensured and only rent to responsible students. You may also have your children pay rent toward the mortgage. The rent they pay while living in the condo will likely be much more affordable than what they would be responsible for when renting an apartment.

Long-term Investment – After your child graduates, you may choose to sell the condo, or utilize it as a rental property as an additional source of income.

Mortgage – Many parents choose to use the FHA non-occupying co-borrower loan for this situation. This type of mortgage provides a lower interest rate and helps the child establish a strong credit rating. While the condo is considered the child’s residence, the parents may retain ownership. This is a very complex mortgage process, and you should always discuss your options with a Mandeville real estate professional before moving forward.

Taxes – There are many tax benefits to consider when buying a condo for your college student. There are several different federal tax deductions that may be applicable depending upon your ownership of the property, and whether it is a personal or investment residence. To better understand the tax implications of buying a condo, consult with a professional.

Things to Consider Before Purchasing a Condo for Your Kid

One of the most important factors that must be considered before you proceed with buying a condo is your child’s maturity level and ability to handle the responsibilities of maintaining a property and possibly collecting rent. You also need to feel confident that your child is going to stay at his or her university and complete the degree program.

In order to protect yourself from unforeseen circumstances, it is important to consult with an experienced real estate lender when structuring your mortgage agreement. A qualified and skilled real estate professional will be able to help you take advantage of the current low interest rates so that you can see return on your investment in the even that you choose to sell in the future.

If you would like help shopping for a condo for your child attending college, please contact me today for a free consultation!

Filed Under: Property, real estate

Using photography to get a higher price for your home

January 22, 2013 By

We have all heard the saying “a picture is worth a thousand words”, but a recent study by a Florida researcher suggests that a good photo might actually be worth more than a thousand dollars when it comes to the sales price of your home.

Ken H. Johnson, an associate professor of finance at Florida International University’s Hollo School of Real Estate, recently released the findings of his study of more than 4,000 homes in which he found that adding at least one photo of your residential listing online can boost the final sales price by 3.9 percent!

Other findings suggested by Johnson in his study include:

  • Interior photos were better than exterior photos when it came to increasing the sales price.  Tip – take more high quality interior photos.
  • There may be a “per photo” price increase correlation as well, as he found that each additional photo added as much as $150 to $200 to the final sales price.

The story appeared in the Wall Street Journal blog earlier this month, and a quote from the lead researcher sums up the findings:

“If I was selling, I would put every picture I could on the listing, at a ratio of four to five interior vs. one exterior,” from Ken Johnson’s interview with The Wall Street Journal.

 

Interestingly, Johnson also suggested something of a negative correlation with adding more photos in terms of the length of time needed to sell the home.  His research indicated that adding additional photos of your listing could increase the time to sell by as much as 20% (or 16.5 extra days), as this extra information might cause a bit of overload with buyers.  However, he concludes that the extra days on the market were worth it if they result in almost a 3% higher sales price on the home.

The study did not differentiate between professional photos versus amateur photos.

 

Tips for getting good pictures

We all know that each real estate listings includes basic photos of the home, however the study indicates that a certain type of photo is what contributes to the higher sales price.  Some of the tips offered for getting better photos of the home include:

  • Remove large pieces of furniture as it can help make rooms look more spacious
  • Paint (or touch up painting) as needed
  • Spruce up the entrance of the home – things like trimming bushes or gardens, pressure washing the sidewalk or even giving the front door a fresh coat of paint or varnish helps tremendously with first impressions
  • Don’t be afraid to touch up photos, or try different angles.  The goal is not to be deceptive, but rather to simply put your best food forward, so to speak.

You may have noticed the photos on this website are unique.  I hope you liked them because I took them, as photography is something of a hobby of mine!  If you would like to discuss how to get great pictures of your home that will help it sell faster and for more money, please contact me for a consultation.

Filed Under: Property, Selling Tips Tagged With: , , ,

Investment Property Opportunity along the MS Gulf Coast

December 20, 2012 By

For anyone who follows real estate trends, even casually, it’s no surprise that investment property and vacation property home sales are booming. The surprise might be just how much those sales are up, and what a huge opportunities investment property buyers along the MS Gulf Coast have in front of them.

Sales Soaring
In 2011, according to the National Association of Realtors, investment homes sales soared a remarkable 64.5% over the previous year, resulting in about 1.3 million homes were sold as investment property.
Sales of vacation homes combined with investment properties meant that non-primary property sales reached their highest levels since 2005 before the housing bubble burst. Vacation homes sales in 2011 were up 7% over the previous year, reaching over a half million in unit sales.

Reasons for the Increase
There are a number of reasons for this big jump in sales.

  1. More foreclosures are hitting the market making for bargain sales prices.
  2. There are many distressed properties on the market even outside of foreclosed properties.
  3. Prices are a bargain with the average investment property selling at about $100,000.
  4. Buying an investment property is better than keeping your money in the bank with today’s low bank rate return.
  5. Cash for full cash sales or large down payments is available due to those low returns in banks.

As a result, investors with reasonable financial resources see real estate investment property as a viable alternative to returns from other types of investments. Investment and vacation home buyers are mature, usually about 50 years old, with incomes above $85,000.

Demand Up for Rentals
While more and more investment grade properties reach the market, demand for rental housing is increasing, making a purchase of an investment home a very good proposition. Let’s face it, it’s not easy for someone with limited resources and an average or poor credit history to buy a home right now. Those individuals and families have to live somewhere – so they rent.
Some people and families also choose to rent right now, even if they can afford to buy. They want to see more stability in the economy before they commit to a purchase. If you are asked to relocate to keep your job, it is easier to move if you are renting and don’t have to sell your house to make the move.

Opportunities Along The Mississippi Gulf Coast
The Mississippi Gulf Coast today is the perfect spot to find and buy investment homes or vacation property. The South is the preferred location for such purchases accounting for 42% of all investment property sales.
As the overall American economy recovers, property with access to recreation and a beach will continue to see increasing demand, assuring a buyer today with a good return on his investment in the future.

 

Filed Under: gulf coast

Is Now a Good Time to Buy MS Gulf Coast Real Estate?

December 10, 2012 By

Ask any realtor if they think that now is a good time to buy a house or condo along the MS Gulf Coast, and the only answer you will get is yes.  Let’s look at the factors that are impacting the current market and how they add up to great opportunity for local buyers.

Lots of Homes to Choose From
It makes sense that the more homes there are for sale on the market, the more likely you’ll be able to find a motivated seller and score yourself a great deal. The good news for buyers is that there is a strong inventory of homes to pick from.  Consider these statistics:

  • In August 2011 there were about 5,143 listings in the Gulf Coast region. For 2012 that number was 4,785, for about a 7% decrease in homes available.
  • Now, let’s look at 2011 compared to 2,000 before the housing boom. The total number of listings in 2011 was 7,216 but in 2000 it was only 5,055.

You can see that a lot more people are trying to sell now than before the market started its reorientation due to the boom. In fact, the number of homes for sale today almost equals the first year after hurricane Katrina when a lot of properties came on to the market.

Mortgage Rates
Finding a great price on a home is only one part of the equation. The other part is calculating how much you are going to pay for your loan in interest rates, and therefore how much of a home you can afford. And let’s face it, you’ll never again pay as little as you will pay now with rates as low as they are.
As of this writing, the 30 year fixed mortgage rate is at or near an all-time low (depending on the type of loan quote you get). Fixed rates are available under 4%, which means mortgages are more affordable than ever.
Consider this example:
If you secure a 30 year fixed rate of 3.65%, your note on $200,000 would be $914.12 a month plus taxes and insurance. In 2005, the average rate was about 6.32% and that was considered low at the time. That same $200,000 note was $1,240.55.
Think about it. The same house for 27% left over the life of a 30 year mortgage. You’d be saving $4,000 a year living in the very same home.

Lending Programs
You hear a lot of people talking about how difficult it is to get a loan. And yes, it is more difficult for some people than it was before the air went out of the housing boom.  If you are a person who has been sensible with his or her finances over the past few years, there are still a number of lending programs available to you. And there are mortgage brokers who want to work with you.
Buyers along the MS Gulf Coast can take advantage of:

  • FHA loans
  • VA loans
  • Conventional loans
  • Rural Development loans
  • Non-conforming loans

Timing
Sometimes getting the best deal is about timing, and now may be the best time to buy soon. Many buyers may wait until they see how the elections may affect their jobs and prospects. Sellers may well have more buying offers from which to choose. Look into buying now and you may not have much competition for your dream home.

Filed Under: real estate

MS Gulf Coast Fall Market Real Estate Roundup

November 30, 2012 By

Positive Signs in the Real Estate Market

New Home Prices at Five Year High, Low Mortgage Rates & the MS Gulf Coast Remains Eligible for RD

For the past few years, the statistics show that many American home buyers have been on the side lines. Some experts believe some buyers have been waiting until the market “bottoms out” to get a great deal. Others point to the fact that many have suffered job losses or financial struggles that have impacted their credit and hindered their ability to buy a home.
But whatever the reasons, as of this October there are many positive signs to point to indicating that our local real estate market has positive momentum.

Home Prices on the Rise

Home prices are rebounding and gaining across the nation, according to a recent publication by the National Association of Home Builders and Reuters. A few of the high points included:

  • Home buyers saw the median new home price rise to $256,000, the highest reported since March 2007 as reported late last month by the Census Bureau.
  • Prices jumped 17% compared to last year.
  • Sales of new homes in the plus $400,000 prices range jumped significantly.

Inventories of new homes still remain at record lows with the market clearing in only four to five months at the recent sales pace. Overall, single family homes sales are steady and remain at two year highs.
New home sales also remain at a two year high, including sales in the South.

Mortgage Rates Reach Record Lows as Loan Applications Rise

As the old saying goes, it doesn’t get any better than this if you want to borrow money for home right now. Mortgage rates have stayed at or near record lows – a fact that impacts many different types of lending programs. What this means for home buyers is that they can take advantage of the markets moving in their favor both ways: lower borrowing costs and improving home appreciation.
On top of this increased demand for mortgages, rates actually fell to record lows reflecting the Federal Reserve’s announcement of more monetary stimulus on the way into the market. The Fed plans on purchasing $40 billion in mortgage backed securities every month, a move which might send rates even lower.

The MS Gulf Coast Remains Eligible for Rural Property

Rural communities have long benefited from Federal lending programs such as Rural Development (RD) that helps rural community residents buy homes with low or even no-down payment loans.
Interestingly though, the definition of rural has not changed since 1974, and many communities that were officially designated as rural at that time are no longer considered rural by most people’s standards. But the good news is these areas are still defined as “rural property” and therefore still qualify for RD loans. This is true throughout the Gulf Coast of Mississippi.
To continue rural benefits to these communities, The National Association of Realtors and other housing groups have urged Congress to change the rules so that some of these areas can be grandfathered into the rural programs.
The problem is that many communities could lose benefits because they are now located in Metropolitan Statistical Areas. Under the old rules communities could not be part of an MSA and had to have a population of fewer than 20,000. The NAR asked the population cap be raised to 35,000 and keep communities with under 10,000 rural even if they are not part of an MSA.
In the past, Congress has passed temporary clearance to keep these communities in the rural housing program. Meanwhile, the federal Rural Housing Service determined via an administrative notice that it will keep current eligibilities in place until March 27, 2013, so it has time to account for changes due to the 2010 census.
The bottom line through all of this bureaucratic maneuvering is that many parts of our local Mississippi Gulf Coast real estate market will remain eligible for these special lending programs as a result of Congressional legislation.
To learn more about new homes sales, mortgage rates, and the rural housing program, contact Philip LeBlanc, Realtor.

Filed Under: gulf coast, real estate

3 Things to Know Before Buying a MS Gulf Coast Condo

September 20, 2012 By

Purchasing a condo is a wonderful alternative to owning a single-family home. Some people purchase condos as starter homes while others downsize to one after years of being a homeowner.And here on the MS Gulf Coast, many people buy condos as vacation homes or even investment property to have access to our beautiful beaches and Gulf Coast.

In the majority of cases, condominiums are smaller than homes, have the property around them maintained and are located in high-rise buildings. They have an apartment-like look and feel to them, but are owned instead of rented. They are also cheaper than single-family homes, which is why these properties are highly valued by those in younger and older generations. Even with all their advantages, there are things you should know before signing on the dotted line.

Here are 3 things you should know before you make your new move to a Mississippi Gulf Coast condo:

What are the association fees?

The association or maintenance fees are what you pay to have the property maintained as well as for the association to pay for insurance. How much you pay largely depends on the size, layout and facilities in the association. Many condominiums have pools, tennis courts and parks and trails, but these all cost money to maintain. If they are important to your family, you may not mind the added fee each month.

Association fees cover lawn care, such as mowing the parkways, planting flowers and removing snow from the parking lots.  They also cover insurance, as the building must be jointly insured to cover common amenities such as roof and walls which don’t belong to one single unit owner.  As you know, insurance can be an important issue along the Gulf Coast so make sure to study the policy and understand if you need additional coverage for your unit.

While maintenance fees can be steep, the good news is that you can save yourself time and money from not having to buy your own lawn equipment. Be sure to ask about what the monthly fees are, and how much they go up each year.

What is the percentage of condos that are owned?

Condos have always been more likely to be rented out because of their affordable nature, but in this economy, more people are choosing to rent out their condos as an investment. If all your neighbors rent out their condos, this will dramatically affect the market value of your property. Not to mention, if you’re trying to get away from the transient nature of an apartment complex, you’ll want a condominium complex that has a more established community. There’s no one “right” answer to this question, but you do want to choose a community that you feel comfortable with. If half of the properties are rented, for example, you may want to re-think the complex.

What is the reputation of the builder?

Before you purchase a condo, investigate the reputation of the developer. Have they developed other properties? If so, what do current owners have to say about their properties? Condos have been popular for decades, so there is good mix of old and new developers. Some have excellent reputations in the market; others do not. If you know you’ll be selling your condo in a few short years, you want to purchase in a well-developed community that has received positive feedback and is in good condition.

You can find a variety of beautiful condominiums along the beachfront of the Mississippi Gulf Coast. With access to world-class casinos, award-winning golf courses, water activities and breathtaking views, you won’t find a better place to stay for a few months, a few years or maybe even forever!

Image c/o: frontdoor.com

Blog sponsored by: Philip LeBlanc

Filed Under: gulf coast, Property, real estate Tagged With: , , , , , , , ,

Half Shell Oyster House Brings Great Food and Hospitality to Gulfport

September 13, 2012 By

Living in Gulfport, MS has many advantages, and one of them is being able to eat at the Half Shell Oyster House. Located on 13th Street in Gulfport, the restaurant has an old-time, classic look and feel to it. It was first opened in 2009 in the Historic Kremer Building in downtown Gulfport and has now expanded its locations to Biloxi and Sarasota, Florida. Open every day for lunch and dinner, you won’t find a better oyster dining experience than with Half Shell Oyster House.

The Oyster Bar 

Dubbed “Half Shell” or “Oyster House” by locals, the restaurant has a diverse menu, with something for everyone. Of course, it’s the innovative Oyster Bar that remains the highlight of the restaurant. The Oyster Bar has an endless selection of oysters that are all cooked differently. One of the favorites is the Charbroiled Oysters, which are charbroiled over an open flame. Other popular picks include Oysters Rockefeller and Oysters Bienville. No matter how you like your oysters, you can find an abundant assortment here for you, all fresh and shucked in-house.

Beyond Oysters

Of course, the Half Shell Oyster House has more than just oysters. The amazing menu serves up fresh catches of fish, with at least three varieties available daily. For non-seafood lovers, the menu also has extensive options for pastas, steaks and chicken. Lunch focuses on smaller portions that include po-boys, sandwiches and salads – all light but filling.

No matter when you choose to come to the Half Shell Oyster House, you’ll be greeted with Southern hospitality you won’t find anywhere else in the country. The restaurant has French Quarter-inspired lighting, exposed brick walls and wrought iron railings that give the building architectural appeal and a welcoming environment. For private parties, there are beautiful banquet rooms available. Even when you’re not in the mood for a full meal, show up to the Half Shell, take a seat at the bar and enjoy a cold one with great company.

Blog sponsored by: Philip LeBlanc

Photo c/o: halfshelloysterhouse.com

Filed Under: gulf coast, Local Businesses, Property, real estate Tagged With: , , , , , , ,

Tips for Buying MS Gulf Coast Beachfront Property

September 6, 2012 By

Have you ever dreamed of living off the gulf coast of Mississippi where you can take advantage of the breathtaking views, beachfront waters and incredible sunsets? If so, then a waterfront property may be the best fit for your new home. As beautiful as Gulf front properties are, there are a specific set of factors that need to be considered. Buying a home is a complicated process as it is, and adding a waterfront view into the mix adds new challenges.

Here are a few smart tips for those interested in buying beachfront property along the MS Gulf Coast.

Choose a Waterfront Specialist

It’s important to work with a realtor that understands waterfront properties and everything that comes along with them. If you’re not familiar with the MS Gulf Coast area, you may think you’re landing a great deal, when really, you’re not. Local realtors who understand these unique properties can tell you how well the shoreline will keep up over time, where the best school districts are for your children, how far away shopping and worship might be, and how individual areas may be affected by seasonal storms.

Evaluate the Home’s Resistance to Weather

When you finally find a home that fits your lifestyle, be sure to evaluate its condition. Does the home withstand the changing weather? Waterfront homes are subject to more abuse from weathering elements than traditional homes, so things like storm shutters and stainless steel locks are important. This is especially true along the MS Gulf Coast where the summer season brings tropical weather and sometimes hurricanes!  Also consider what obligations you will have being a waterfront property owner. You may be part of a homeowner’s association that charges monthly fees to care for the properties.

Consider the User-Friendliness of the Area

Many waterfront properties are located in more private areas, so you may not have all the typical luxuries available to you, such as a large grocery store, shopping center or movie theater. If you have a family, consider your lifestyle first. Although having a beachfront property can be fun and relaxing, you want to have the important places you use regularly within a reasonable distance. Also ask about utilities; some rural areas have limited access to cable, phone and internet, and bringing in these services can cost double than average.

Understand the Complexity of Loans & Insurance

It’s a smart idea to look into loans and insurance early, as getting a loan and finding insurance for a beachfront property can potentially be more challenging. You may wind up needing a “jumbo” mortgage or condo loan depending on where you buy, and you may need to buy several insurance policies, which include a flood policy at minimum.

While buying MS Gulf Coast beachfront property has added challenges, it’s certainly worth the effort! Gulfport and the entire Mississippi Gulf Coast offers waterfront living for people of all ages, and is a wonderful place for families to call home. You certainly won’t find a better quality of life than here!

Image c/o: en.wikipedia.org

Blog sponsored by: Philip LeBlanc

Filed Under: gulf coast, Listing, Property, real estate Tagged With: , , , , , , , ,

Is There Such a Thing as ‘Affordable’ MS Gulf Coast Beachfront Property?

August 30, 2012 By

There’s no doubt about it; MS Gulf Coast beachfront property IS luxury property. People on tight budgets don’t generally shop for their new homes along the waterfront, and those who own these homes have affluent jobs and healthy paychecks. Not only do beachfront properties cost double to triple a traditional home, but also these properties are much more costly to maintain. Waterfront homes take more abuse, require more maintenance and steep insurance policies. With these factors in mind, only highly qualified buyers are considered for loans for waterfront properties.

But what about the average person who wants to pursue their dream of living off the beach? Can beachfront property actually be affordable?

Beachfront property is expensive. Period. You won’t find any deals here because this type of luxury living is highly valued. We can’t build more beaches, and what we do have is limited. This fits with the concept of supply and demand; beachfront homes are rationed and very much in demand by those who can afford them.

Where Affordable and Luxury Come Together

Now, there are a few things to consider that can make buying a home along the water on the MS Gulf Coast an affordable option for your family. Always remember the market and how it fluctuates from one state to the next. If you’re relocating to the MS Gulf Coast from San Diego, CA for example, you may find that the waterfront properties are “cheaper.” Really, they’re priced right for the area, but some people choose to purchase vacation homes in other states because they feel they are a better deal.

Second, the type of water that is in your backyard matters. It’s cheaper and easier to purchase a small home along a river, lake or canal versus a home off the beach. Yet as you’ll quickly see, most homes along the beach are simple in nature. Some resemble small shacks, which is why people think they are more affordable than what they are. This is one situation where you will certainly be paying for the location instead of the home.

Also, you might consider living just a few blocks off the beach as a way to find a more affordable home.  You will still be within walking distance from the beach, but this extra distance could possibly bring down the price to a level you can afford.

Finding Affordable Beachfront Property in Gulfport

While beachfront property isn’t exactly affordable, there are some places that are more attainable than others. Gulfport, MS is a wonderful place to retire to or move with the family, especially with its 26 miles of sandy white beaches. Mississippi has the lowest per capita income, making the cost of living here relatively low. This in turns drives down the prices of the homes and makes them – yes – more affordable. Thanks to the generous amount of beachfront property in Gulfport, there are also more opportunities to land a dream house that fits your budget.

Image c/o: beachimages.org

Blog sponsored by: Philip LeBlanc

 

Filed Under: gulf coast, Listing, Property, real estate Tagged With: , , , , , , , , ,

Orange Grove, MS Real Estate

August 21, 2012 By

Located in Harrison County, one of the fastest growing areas of South Mississippi, Orange Grove is an excellent location to reside and do business. Orange Grove is conveniently located near Gulfport, home base to the Naval Construction Battalion Command and Biloxi, home to Keesler Air Force Base. The beautiful Gulf of Mexico is just a short drive, to the south, on route forty-nine.

The area offers much in the way of history and culture, along with sporting and relaxation activities, like fishing and bird watching. Local festivals are held throughout the year, featuring regional cuisine and art sure to please the entire family. Fresh seafood markets and restaurants are plentiful, with catches of the day, including yellowfin tuna, shrimp and crab being available throughout the year.

Real estate availability, in and around Orange Grove, ranges from moderately priced single-dwelling homes to sprawling estates. Whether you’re looking for a year-round residency, or with a vacation home in mind, the community of Orange Grove offers great real estate buys.

 

Blog sponsored by Philip LeBlanc

Filed Under: real estate Tagged With: , , , , , , , , , ,
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