Atlanta Real Estate News & Atlanta GA Real Estate Home Sales » Real Estate Investors

Real Estate Strategy: Buy & Hold (even if it hurts right now)

By: Brad Nix, Managing+Broker
Posted: November 16th, 2008
Category: Real Estate Investors



under water mortgage

I know many homeowners are upside down in their mortgage, meaning you owe more to the bank than your home is worth in today’s market.  Don’t panic.  Don’t force a sale.  Don’t do anything, except keep making your payments - even if it’s hard to do so.  Cut back on everything else in your life and keep making payments on your house.

Mark Cuban, one of my favorite thinkers, bloggers and personalities in America, recently wrote this advice on Homes vs Stocks:

So whats the difference between being underwater on a mortgage and underwater on a stock ? Is it that “experts” will tell you to hold the stock in hopes of it going up in value and then explain that those with homes worth less than their mortgages shouldn’t feel bad about breaking their mortgages and defaulting ?

I think “Buy and Hold” for stocks is one of the all time great marketing scams. Ignore it. Always.

“Buy and Hold” for your house is a mantra you should always live by. The difference ?

You can live in your house. You get utility from your hous

e. You may get a deduction for interest paid on your tax bill. You can develop a positive emotional attachment to a house.

A share of stock….well you can…you can look up the pr

ice anytime you want if you think thats fun. There is no utility of a share of stock beyond its financial value. The value of a house is that its your home.

But so many of you are now saying, but I’m upside down or underwater on my mortgage.  I owe more than my home is worth.  Cuban has this to say to you…

The fact that you may be underwater in your mortgage is of no relevance if you can make the payments.

If you can make the payments on your mortgage, it shouldnt matter if your house is worth 10pct of your mortgage. If you can make the payments, make them.

The value of your home may not go back up for years, but your payments will build equity.  It may take years, truly a Buy and Hold Strategy, but you can ride it out and make it work.  Time is on your side in a fixed rate mortgage.  The longer you stay and pay, the more equity you have later.  Cuban has this to leave you with…

Which is exactly the point. Buy and hold works when it comes to the HOME you LIVE IN. Turning in the keys because you have negative equity is a fool’s game. If you do, YOU WILL NEVER OWN A HOUSE.You will be a renter FOREVER.

Your home has far more value than its mark to market price because you can live in it . Do whatever you can to stick it out. It will pay off for you in the long run

Thanks Mark for being a true Maverick, read his full article here!

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Atlanta Housing Options - Many first time buyers find Condo living ideal!

By: Maxsell Real Estate,
Posted: October 1st, 2008
Category: First Time Buyers, Real Estate Investors



Could A Condo be right for you?

Choosing an Atlanta condo makes a great deal of sense to many people. And in today’s Real Estate market there are more choices than every before. From the newly built to the older apartments that have been converted, they are as diverse as the prospective Atlanta buyers who are considering them. You can find Atlanta condos in all price ranges, but they usually offer a more economical alternative when compared to Atlanta single-family homes.

Your finances may not allow you to purchase an Atlanta single-family home, but a condo might allow you to stop paying rent and move closer to that ultimate goal. Many Atlanta condos offer shared resources that might include a swimming pool, exercise facilities, community rooms or other amenities. The lure of no or minimal upkeep is also attractive.

Of course there are advantages and disadvantages to owning an Atlanta condo. You will have to consider many factors and hopefully the following will point out some of them.

Positives of owning a Condo

A quick rundown of the why a condo might work for you:

  • A condo may be more attractive at certain stages in your life. Singles, newly weds, and retirees find they work very well because they allow you to have the security of ownership while having more time to “get on with life”. Instead of paying rent you are investing.
  • Condos are usually more reasonable than their single-family counterparts.
  • You can still be king of your castle – your interior choices are yours to make with few limitations.
  • Condos are often located in a central area with easy access to thruways, and/or public transportation.
  • Unlike apartments, condos have an association that maintains all common areas – so no more lawn mowing or shoveling snow for you! They also make handle repairs to the roof, decks, hallways etc., leaving you responsible for repairs to only your interior and mechanicals. Many condos include cable and internet access.
  • There are condos that have added security or is part of a gated community.
  • If shared amenities are important to you, choose one that features a swimming pool, exercise room etc.
  • Since the 1980’s there has been a boom in the building of condos, so they reflect the features that are important to today’s buyers.

Negatives to Atlanta Condo Ownership

Now for what many consider to be the downside of owning a condo:

  • As in apartments, you will have some common walls.
  • Many do not have a garage or adequate storage.
  • Association dues. These are assessed on all condo owners and are used to finance repairs and maintenance. Depending on the condo they can go from $50 to $350 per month.
  • You are living in closer confines than in a single family. But if you are now renting, it will be a similar experience.
  • In a buyer’s market they are more difficult to sell, and they grow in value at a slower rate than a single-family home.
  • Some condo associations allow owners to rent out their unit, while others do not. Living next door to a renter might be a different experience than living next to an owner.

The best advice is to thoroughly research an Atlanta condo before buying. No sense in buying a condo that allows pets when you dislike dogs. The same holds true if you are over 60 and find children irritating. No sense in paying increased association dues for a swimming pool, spa and exercise facilities if you are a couch potato. There are so many Atlanta condo’s – be sure that you find the one that represents the best value for your circumstances.

Additional Articles of Interest:

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Attention Atlanta Renters! Now is the time to purchase an Atlanta home!

By: Maxsell Real Estate,
Posted: September 18th, 2008
Category: First Time Buyers, Real Estate Investors



It is time to buy now!

Are you sitting on the fence for the wrong reasons?

Are you sitting on the fence for the wrong reasons?

 

If you currently do not own a home and were holding off buying an Atlanta home because prices were out of your range, then you should take advantage of the declining market.  In a Buyer’s market you have an opportunity to buy “right”. 

Delaying the purchase of an Altanta home in the hopes that the market will continue downward could be a mistake.  Don’t be sitting on the sidelines in the hope that it will continue on the downward spiral – it might not.  

Read Also:  Atlanta Stats and Facts

Now is not only for first time buyer!

 

By the same token, if you do own your Atlanta home, and were thinking of moving up, it is also a good time to check the market out. There are more factors for you to consider than the first-time buyer, but these factors are not all negative.

·         Equity – the more equity you have in your home the better the argument to putting it to work in a new home. 

·         Price Differential – Even though your chances of getting top dollar in a Buyer’s market might be an unattainable challenge, remember that when you go to buy, you won’t be paying top dollar either.  Do the math, you might like the results.  For instance a lower priced home will likely get closer to market value than a more expensive home.  For figuring purposes, say a $100,000 home ends up selling for $85,000.  But a $200,000 home ends up selling for $175,000.  If you’re the person selling the first home and buying the second, you have netted $10,000 between the two transactions.

·         Investment Property.  This is the time to investigate Atlanta rental property.  There are many Atlanta investors who have spread themselves too thin and are interested in divesting themselves of some of their Atlanta property.  Read Also:  So you want to be an investor

·         Vacation or Retirement Homes.  If you are in a position to take advantage of purchasing a vacation home, now is the time.   If you had thought of retiring to a location that has been severely impacted you have an opportunity at hand that might now be available in the future.

 

Read Also:  What everyone needs to know about the housing bubble

 

In any event, if you have considered buying an Atlanta home, now is the time.  Don’t sit on the sidelines and then in the future say “I should’ve”.

 

 

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Georgia General Contractors Need a License

By: Justin Daniels,
Posted: August 10th, 2008
Category: Real Estate Investors, real estate news



As of July 1, 2008 residential and general contractors who do work in Georgia must obtain a license from the State Licensing Board for Residential and General Contractors.

All applicants will have to pass a two part examination and pay a licensing fee. The law provides an exemption for homeowners who wish to make their own home improvements.

You can learn more by using the following link. http://sos.georgia.gov/plb/faqs/49%20faqs.htm

Check out:  Georgia General Contractor Directory

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