The rental market is continuing to heat up and can offer potentially big returns for buyers willing to jump into the landlord role.  

    For investors looking to take advantage of low record-reaching mortgage rates and big discounts on home prices, the opportunities are plenty.  Rents are rising and demand is up too, partially due to the 4 million former homeowners who've faced a foreclosure and are now renters.

   Nearly 35 percent of occupied homes were rented in 2010, which is a 33.8 percent increase from 2000, according to a recent study.

   "Whereas leverage is dangerous when buying stocks, buying a rental can be a good long-term strategy with real estate," real estate investor Marshall Sonenshine told Money Magazine.

    Experts suggest the wisest move for investors is buying a property near their permanent residence and say rental income should cover at least the mortgage payments on the property as well as an extra 20 percent cushion to pay for any repairs, property management or get you through any vacancies.  

   Forget stocks.  Don't bet on gold.  After four years of plunging home prices, the most attractive asset class in America is housing, according to Mike Castleman, founder and CEO of Metrostudy. 
   Castleman has spent more than three decades tracking real-time data on the country's inventory of new homes.  Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago.  "If we had anything like normal levels of buying, those houses would sell in 2.5 months," says Castleman.  "We'd see an incredible shortage.  And that's where we're heading."
    Two basic factors are laying the foundation for dramatic recovery in residential real esate.  The first is the historic drop in new construction that so amazes Castleman.  The second is a steep decline in prices, on the order of 30% nationwide since 2006.  Mark Zandi, chief economist for Moody's Analytics expects that prices will rise three to four points faster than inflation for the next few years in virtually all the nondistressed markets.  His view is that prices will increase in the line with rents, which are now growing briskly because apartments are in short supply. 
    Castleman claims that this recovery will look like all the others:  It will bring a severe shortage of housing.

   Interest rates continue to stay at record lows.  Home values are turned back to levels 10 years ago.  The combination of these two factors have made home buying the most economical in our lifetime.  We see many homes on the market that are in need of a little TLC (Tender Loving Care) and others that require major repairs and still others that are in the perfect neighborhood location but may be lacking an extra bedroom or bathroom.  These scenarios are perfect for FHA's 203K Rehabilitation loans.  This product allows a borrower to purchase a home or refinance an existing home and combine a rehabilitation loan and primary mortgage all in one single loan locking in today's low interest rates.  Virtually any kind of improvement is acceptable.  Consider the following:

· Repair/Replace roofs, gutters, plumbing, electrical and flooring
· Repair/Replace/Upgrade existing heating, ventilation, air conditioning
· Exterior and interior painting
· Weatherization including storm windows, doors and weather stripping
· Purchase and installation of appliances
· Repair/Replace/Additions of decks, patios, porches
· And many other remodeling and waterproofing projects

This product requires the property to be the borrower's Owner Occupied Primary Residence.  This loan is offered as a 30-year fixed rate only.  So don't be afraid to buy that "fixer upper".
...Don Bartolomucci
   Southeast Regional Manager
   Mortgage Network

   The National Mortgage Complaint Center, a consumer advocacy group, is asking Congress to introduce legislation to restore the federal tax credit for home buyers in order to "rescue the U.S. residential real estate markets" and prevent home prices from dropping any further.
    The group is asking the tax credit be increased to $15,000 and be available to every qualified home buyer, including investors, first-time buyers, and repeat buyers.

We are currently offering a $500 Closing Gift to you!  We deeply appreciate your confidence in us!  

Click here for details. 

Do you have a question or an idea of what you would like included in our next e-Newsletter?  Just let us know.  Contact us at:

 

Michael Renick  

mjrenick@verizon.net  

T: 941.400.8735 

 

Eric Teoh 

elteoh@verizon.net 

T. 941.735.2199 

 

We'll take it from there!

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 Windward Bay 

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Offered at $274,000 

 

 ____________________

 

  Sarasota "Season" heats up starting in October and continues through April. 

 

Here are just a few things not to be missed  in the coming month!

 

 

k.d. lang and The Siss Boom Bang performs at the Van Wezel Performing Art Hall.  Oct. 9 @ 7 p.m. Call (941) 953-3368 for tickets. 

 

Gartenfest: Garden Music Series presents some of the area's top artists in one of Sarasota's most beautiful venues, Marie Selby Botantical Gardens. A virtual feast for all the senses.  Events every weekend in October. Call (941) 366-5731 for more info.

 

 

Art After 5 at the Ringling Museum of Art and Circus Museum.  Every Thursday from 5 p.m. to 8 p.m., experience the exhibits, cocktails and great conversation on the loggia or on the grounds.  Call (941) 359-5700.

 

  

Movie Heros - The Sarasota Orchestra.  It is a night of heroes and heroines at the musical tribute to the silver screen. Oct. 12 at 5:30 p.m. and 8 p.m. Call (941) 953-4252.