Daily Archives: March 28, 2014

Eliot Spitzer puts $145M worth of apts. on the block | Mt Kisco Real Estate

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Real estate scion and former governor Eliot Spitzer is selling a big portfolio of apartments his family owns on the East Side in a deal that could fetch $145 million or more.

Mr. Spitzer has put 144 rental units at the Corinthian, a huge apartment tower his father Bernard Spitzer began building in the mid 1980s and finished in 1987. Robert Knakal, chairman of the brokerage firm Massey Knakal Realty Services, is marketing the apartments and confirmed the units were on the market.

“The market for any type of property today, but especially residential assets, is spectacular,” Mr. Knakal said. “It’s a great time to take advantage of it.”

The 57-story building, at 330 E. 38th St., is one of Manhattan’s largest residential towers, with 863 units, and a distinct columnar facade that provides the apartments inside with curving bay windows that offer sweeping views of midtown. The Spitzers sold most of those apartments in the years immediately after they constructed the tower, but when the city’s sales market slowed by the late 1980s, they decided to hold on to 144 units and convert them to rental properties.

The family has held onto the apartments, which are scattered throughout the tower, ever since.

Having lost a tightly-fought bid for city comptroller last year and with his father in his 80s and in poor health, the deal is also a sign that the younger Spitzer has begun to take a more active hand in steering the family’s real estate business. In December, he acquired a prime development site in the Hudson Yards for $88 million.

The sale of the Corinthian apartments could be a way for Mr. Spitzer to raise capital for future acquisitions or help finance the purchases he has made.

“Eliot is very sensitive to the fact that the family has extracted as much value as it can from some of the assets it owns,” said Jeffrey Moerdler, a real estate attorney with the firm Mintz Levin, who is a friend of Mr. Spitzer’s and handles the legal work for many of his real estate transactions, including this current sales effort. “He’s trying to monetize those buildings and revinvest in assets that have the opportunity to generate new value.”

 

 

http://www.crainsnewyork.com/article/20140325/REAL_ESTATE/140329923/eliot-spitzer-puts-145m-worth-of-apts-on-the-block

Oliver Vows Lower Canada Role as Banks Cut Mortgage Rates | Cross River Real Estate

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Canadian Finance Minister Joe Oliver said today he will continue to reduce potential risks to taxpayers of a downturn in the housing market after banks cut their lending rates to the lowest in about a year.

Oliver told reporters he spoke to Bank of Montreal (BMO) Chief Executive Officer Bill Downe about the lender’s decision to lower mortgage rates in time for the spring home-buying season. Oliver said in a statement earlier today he’ll keep monitoring the market. They were his first comments on housing since replacing Jim Flaherty on March 19.

Policy makers, led by Flaherty, have tightened rules that govern mortgage lending amid concern the balance sheet of the federal agency that backstops mortgages has grown too large. The value of home loans insured by Canada Mortgage & Housing Corp. has almost doubled since the end of 2006.

“The government is gradually reducing its involvement in the mortgage market,” Oliver said he told Downe.

Most recently, the federal government began collecting a“risk fee” of 3.25 percent from Canada Mortgage & Housing on the insurance it writes.

 

http://www.bloomberg.com/news/2014-03-27/oliver-monitoring-mortgage-market-after-banks-cut-rates.html?cmpid=yhoo

 

Is homeownership a smart investment again | Pound Ridge Real Estate

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One year ago, Trulia’s Rent vs. Buy Report, released by online real estate aggregator Trulia, found it was 44% cheaper to buy a house than to rent. Today, the gap has narrowed, due in part to rising interest rates and home prices. The newest edition of the report finds that buying a home is now 38% cheaper than renting. The report compares costs for a seven-year period using five calculations:

 

1. The average rent and sale prices for an identical set of properties;

2. The initial total monthly costs of owning (assuming 20% down and a 30-year fixed-rate mortgage at 3.5% interest, as well as annual maintenance, insurance, utility, and property tax expenses) and renting (monthly rent plus renter’s insurance);

3. The future total monthly costs of owning and renting;

4. One-time costs and proceeds (for owning, this includes closing costs and capital gains tax of 15% for gains above the $500,000 annual exclusion; for renting, this includes one month’s security deposit); and

5. The net present value to account for opportunity cost of money (this compares cash flows over time).

According to the report, homeownership remains cheaper across the nation and in all of the 100 largest metro markets. However, these findings speak broadly to the national market, and there are several situations where it still makes more sense to rent. Here, we look at some of the reasons why it’s a good time to buy for many Americans, and circumstances when it might make more sense to rent.
Reasons to Buy
Peggy Jennings, a Broker/Realtor with Prudential Great Smokys Realty in Sylva, North Carolina, cites favorable interest rates, good inventory and relaxed loan requirements as good reasons to buy now. “Interest rates are still good. The inventory is improving as more people are deciding it’s time to sell. There’s going to be a lot of good inventory coming up, especially since the foreclosures from a couple years ago are now rehabbed and ready to sell,” says Jennings.

 

http://homes.yahoo.com/news/is-homeownership-a-smart-investment-again–215619685.html

10 Common Landing Page Myths: Busted | Bedford Corners Realtor

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I remember when I found out the Tooth Fairy wasn’t real. My whole world was shattered. Granted, I was about eight, but I was furious to find out that my parents had been putting a quarter under my pillow every time I’d lost a tooth, not a sweet fairy named Daphne who lived in a castle made out of my pearly whites. Continue reading →

Survivors Face Foreclosures After Reverse Mortgage Borrower’s Death | Waccabuc Real Estate

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There are a number of reasons someone might take out a reverse mortgage: to pay for prescriptions or medial care, to subsidize their daily living expenses or even to settle their fear of becoming a burden to  their family. But the product that was designed to keep elderly consumers in their homes is now wreaking havoc on their surviving loved ones.

 

Children and surviving spouses of reverse mortgage borrowers are finding that the loans are threatening their own livelihood and that lenders aren’t being upfront about their options to resolve the debt, The New York Times reports.

Reverse mortgages allow a borrower, 62 years or older, to convert the equity on their home into a lump sum or monthly payments. The funds are not required to be paid back until the borrower moves or dies

Although the reverse mortgage industry has been in decline since the financial crisis — only 51,000 loans were taken out in 2012, far below the 115,000 loans taken out in 2007 — the default rate is on the rise and surviving family members are left with the bill.

And that’s just the situation that Isabel, whose story is told in the Times piece, found herself in when her mother passed away. Now, she has a stack of foreclosure notices for her parent’s home because she was never told her options in resolving the debt.

Her mother began borrowing against the equity of her home in 2009. When she died two years later the outstanding reverse mortgage balance hovered around $308,000. The company that extended the loan moved to foreclose on the house unless Isabel paid the debt in full.

However, Department of Housing and Urban Development regulations for reverse mortgages require banks offer survivors the option to settle the loan for 95% of the home’s current fair market value. Because reverse mortgage loans are tied to the equity in one’s home, it is a finite amount, which can fluctuate with the changing home value.

 

 

http://consumerist.com/2014/03/27/despite-regulations-survivors-face-foreclosures-after-reverse-mortgage-borrowers-death/

When Housing Prices Become Fish Stories, the Economy Suffers | Chappaqua Real Estate

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Over at Wonkblog, Christopher Ingraham points us to new research from Ireland suggesting that an awful lot of people don’t know how much they paid for their houses. I’ve adapted the main chart from the study on the right. As you can see, most people who get this wrong underestimate how much they paid—sometimes by gigantic amounts. Very few people overestimate how much they paid, and virtually no one overestimates by more than a quarter or so.

What accounts for this? As it happens, the authors are mostly concerned with how this poor recall affects estimates of the wealth effect—which I admit I didn’t really understand.1 Because of this focus, they don’t spend a lot of time speculating on the underlying causes. But they do mention that the older the loan, the less accurate people are; that younger people remember better than older people; and that errors are smaller among the well-educated.

But none of this explains why the bad recall is overwhelmingly on the low side. So here’s my guess: people lie. Or, more charitably, they’re in denial. They don’t want to admit to themselves or their friends how much they lost during the housing crash. Or, when prices are rising, they like to brag about how much they’ve made. Everyone else claims to have made a killing, so they slice a little bit off their buying price to make it seem like they made a killing too. No one wants to be a sucker, after all. Do this enough times, and eventually you come to believe it yourself.

 

 

http://www.motherjones.com/kevin-drum/2014/03/when-housing-prices-become-fish-stories-economy-suffers

Pending Home Sales at 30-Month Low | South Salem Homes

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The National Association of Realtors (NAR) Thursday morning released its data  on pending sales of existing homes in February. The pending home sales index  fell 0.8% from a downwardly revised index reading of 94.7 in January to the  February reading of 93.9. That is 10.5% lower than in February 2013, when the  index reading was 104.9. The consensus estimate called for a month-over-month  decrease of 0.8% in pending sales. The index reflects signed contracts, not  sales closings. An index reading of 100 equals the average level of contract  signings during 2001.

Total existing home sales are expected to come to 5 million, below the 2013  total of 5.1 million. National median home prices are forecast to rise by about  5.5% to 6.0% this year, but existing home inventory levels need to increase to  help keep prices in check. The median price forecast is slightly higher than  last month’s forecast. Home prices rose 11.5% in 2013.

The NAR’s chief economist noted:

Contract signings for the past three months have been little changed,  implying the market appears to be stabilizing. Moreover, buyer traffic  information from our monthly Realtor® survey shows a modest turnaround, and some  weather delayed transactions should close in the spring.

Pending home sales in the northeastern United States declined 2.4% in  January, posting an index reading of 77.1, down 7.4% from February 2013. The  index rose 2.8% in the Midwest but remains 8.5% below last year’s reading. Sales  fell 4% in the South and rose by 2.3% in the West. Compared with February 2013,  all regions are down.

Pending home sales do not have the economic impact of new home sales, which employ  thousands of people in building and furnishing new homes. But it does give some  indication of the market for housing

Read more:  Pending Home Sales at 30-Month Low – 24/7 Wall St. http://247wallst.com/housing/2014/03/27/pending-home-sales-at-30-month-low/#ixzz2xGWrwkK4

The 9 Biggest Gardening Mistakes to Avoid | Armonk Real Estate

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Putting shovel to soil and watching flowers and vegetables grow is one of the best parts about warm weather. Not only is gardening fun, it improves your well-being, too, since it gets you out and about in the fresh air and sunshine. But it can also become a costly and time-consuming hobby if you don’t know what you’re doing, for this reason we recommend that you uses the services from tree trimming Boise to keep your garden in a good shape. Whether you’ve been gardening for years or are just starting out, there’s always room for improvement. Read on to discover common gardening mistakes, and tips from the pros on how to correct them. Photo by: Diane Morey Sitton

Mistake #1: Not Using Enough Mulch While mulch (or any other type of material-from compost to newspaper-that’s used to cover the surface of your soil) is key to a healthy garden, many people just don’t use enough of it. “Compost is meant to suppress weeds and hold in moisture so your plants are able to grow properly,” says Amy Stewart, author of Wicked Bugs. But it does a lot more than that. Mulch also reduces the impact of heavy rain and helps maintain an even soil temperature, according to the Natural Resources Conservation Service. A good rule of thumb: Use three to six inches of compost on top of the soil around the base of your plants, recommends Stewart.

Mistake #2: Overwatering This common mistake is not only harmful to your plants, but it’s wasteful as well. “We use drinking water to water our plants when we need to be more efficient and conscientious about what kind of water we use, how much and how often,” says Jamie Durie, landscape designer, horticulturist and host of HGTV’s The Outdoor Room. If your watering system is on a timer, make sure to turn it off on rainy days. It’s also best to water your plants at dawn or dusk, especially on hot summer days, when water evaporates quickly. Drip irrigation, which conserves both water and fertilizer by allowing water to drip slowly to the roots, is also an extremely effective-and inexpensive-option. While TLC.com recommends giving most plants and your lawn an inch of water per week, the key is keeping the soil moist without overdrying or oversaturation, as both can be damaging. If you’re looking for beautiful, yet easy to install and maintain landscaping addition, artificial grass is a great idea. At World Class Surfaces, we provide installation & supply of artificial grass/synthetic turf to any home or commercial properties in Perth. Using only the highest-quality Artificial Grass designed we supply to suit every kind of home, school, sport surface & recreational facility.

Mistake #3: Not Doing Enough Research Before Purchasing Your garden will never look as lush as you’d it like to if you’re planting the wrong flowers and shrubs, so always find out what types of plants grow best in your climate. First, check out your neighbors’ properties to see what’s in bloom and what’s not-if it grows in their yard, it will probably grow in yours. Then, make a sun map of your planting area, Stewart recommends. “Observe the sun and shade levels at 9 a.m., noon and 5 p.m. so you are aware of the light,” she says. And finally, if you want to be extra diligent, test your soil. “It basically involves filling up vials with soil and adding liquid agents to determine the pH levels,” says Jon Feldman, landscape designer and owner of G. biloba Gardens, Inc. in Nyack, New York. “Test kits are available from better garden centers and local Cooperative Extension Agencies.”

https://shine.yahoo.com/at-home/9-biggest-gardening-mistakes-avoid-192600695.html

The best cities for first-time home buyers | Katonah Real Estate

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In the rush to get in on the bargains of the housing crash, first-time home buyers were largely left out. Investors swarmed the most distressed markets, spreading their cash like fertilizer and pushing home prices up far faster than most expected. In less distressed markets, first-time buyers were still hampered, as the pendulum swung hard from loose lending to too-tight credit.

Now, as the spring season brings more listings to the national market and as investors seem to be pulling back a bit, first-time buyers are testing the water again. Some markets, like San Francisco, will likely be cost-prohibitive , while others, like Philadelphia, could offer easier entry to home ownership.

“First-time home buyers were put at a disadvantage against all-cash buyers, but with interest rates still staying low, with the marketplaces having risen fairly decently, you’re seeing the opportunity where it’s less of an investment for investors but a good opportunity for first-time home buyers,” said Steve Berkowitz, CEO of Move Inc. operator of Realtor.com.

Realtor.com ranked the top 10 markets for first-time buyers, using five factors to judge the best: market popularity, prices, inventory, time on market and employment. Pittsburgh, Tampa, Fla., and Philadelphia , ranked highest, mostly because their prices have not spiked much and their unemployment rates are lower than the national average.

 

 

 

http://homes.yahoo.com/news/best-cities-first-time-home-161200437.html