California Mortgages – Tinigard http://tinigard.info/ Sat, 25 Sep 2021 13:56:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://tinigard.info/wp-content/uploads/2021/05/default1-150x150.png California Mortgages – Tinigard http://tinigard.info/ 32 32 CFPB fined $ 20 million against mortgage lender’s director https://tinigard.info/cfpb-fined-20-million-against-mortgage-lenders-director/ https://tinigard.info/cfpb-fined-20-million-against-mortgage-lenders-director/#respond Fri, 24 Sep 2021 22:34:00 +0000 https://tinigard.info/cfpb-fined-20-million-against-mortgage-lenders-director/ By Sarah Jarvis (September 24, 2021, 6:34 p.m. EDT) – A California federal judge ordered an executive of mortgage lender Monster Loans to pay a civil fine of $ 20 million to the Consumer Financial Protection Bureau, which accused him of illegally access credit reports for allegedly predatory student debt refinancing companies. U.S. District Judge […]]]>
By Sarah Jarvis (September 24, 2021, 6:34 p.m. EDT) – A California federal judge ordered an executive of mortgage lender Monster Loans to pay a civil fine of $ 20 million to the Consumer Financial Protection Bureau, which accused him of illegally access credit reports for allegedly predatory student debt refinancing companies.

U.S. District Judge Stanley Blumenfeld Jr. said in his judgment Thursday that Jawad Nesheiwat, the chief operating officer of Monster Loans, recklessly violated the Fair Credit Reporting Act, the Telemarketing Sales Rule and the Consumer Financial Protection Act. The court rejected CFPB’s offer of a maximum civil fine of over $ 116 million and Nesheiwat’s proposal of a maximum fine …

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The solution is there for experienced fins – NMP https://tinigard.info/the-solution-is-there-for-experienced-fins-nmp/ https://tinigard.info/the-solution-is-there-for-experienced-fins-nmp/#respond Fri, 24 Sep 2021 14:19:08 +0000 https://tinigard.info/the-solution-is-there-for-experienced-fins-nmp/ The past few years have been particularly difficult for fix-and-flip investors, with rapid price appreciation and slow recovery in stocks. Although the rate of home flips in the United States has been increasing steadily since March, ATTOM data reveals that profit margins have shrunk. The return on investment for fix-and-flips fell to 33.5% from 37.2% […]]]>

The past few years have been particularly difficult for fix-and-flip investors, with rapid price appreciation and slow recovery in stocks. Although the rate of home flips in the United States has been increasing steadily since March, ATTOM data reveals that profit margins have shrunk.

The return on investment for fix-and-flips fell to 33.5% from 37.2% three months earlier and 40.6% a year earlier. Looking only at the average, it would seem like a dismal year for fix-and-flippers. But profits are not the same for everyone, and experienced investors have a secret sauce for higher returns.

Experienced investors can be loosely defined as those who have been in the real estate game long enough to know how to handle dramatic fluctuations in the market, including rapid appreciation in prices and weakness in stocks. Before the pandemic, America was already in the midst of a housing affordability crisis, with low inventories and steadily rising housing costs. In 2019, 48.8% of households in the United States were overburdened with costs, meaning that 30% or more of household income went to housing costs, according to the US Census Bureau. But this problem increased tenfold during the pandemic, and not everyone was ready.

Last June, the S&P CoreLogic Case-Shiller National Home Price Index recorded the largest annual increase in home prices, at 18.6%, from 16.4% a month earlier. The reason neither mortgage advisers nor investors should panic is that this rapid price appreciation is fueled by consumer demand. Historically low mortgage interest rates have driven consumers to flood the market, and seasoned real estate investors are getting some of the best deals of their lives.

“This is the best time for experienced investors,” said William Tessar, President of CIVIC Financial. “The reason we haven’t slipped into another housing crisis or bubble is that we have historically low interest rates and an overwhelming amount of consumer demand. So price appreciation is actually a good thing, especially when thinking about resale value. This is natural competition in the market, and experienced investors have taken advantage of these opportunities.

Experienced investors also have the privilege of partnering with service teams, such as property management teams or ancillary teams, to handle more minute details. They have also established partnerships with contractors, real estate agents and appraisers over the years. For example, seasoned investors know that a good real estate agent should act like a second set of eyes when buying flips, analyzing the appropriate purchase price, and estimating the value of the home after renovations. It takes time to develop these relationships, but you don’t necessarily need it to get better returns on your investment.

Remote work migration

To understand the economy, experts say “follow the money” and to understand real estate investing, experts say “follow consumer demand”.

“Investors can’t do enough research,” Tessar said emphatically. “The big reshuffle has had the biggest impact for both investors and lenders, and if you don’t pay attention to these trends you’ll be completely lost. “

The most important factor investors need to consider in today’s market are migration patterns, Tessar noted. Due to the proliferation of remote working during the pandemic, the upper and middle classes have sought more suitable places to live. Overall, preferences have changed because so many lives have changed. Suddenly parents needed a home office; mothers needed a classroom to teach their young children, and parents needed an extra bedroom to move in. In late August, Redfin reported that the sale of large homes (3,000 to 5,000 square feet) increased 21% year over year, growing 10 times faster than smaller homes.

“Investors who know what they’re doing pay attention to people’s preferences. Houses get bigger, they’re used differently and people buy bigger, ”Tessar said. “The great thing is that all of this information is available online. Where people migrate to the southern and western regions, you don’t need a team to figure it out. All information is easily accessible.

Indeed, many organizations have followed national migration patterns since the start of the housing boom a few months after the start of the pandemic. Zillow reported that southern states and metropolitan areas saw the largest inbound movements in the first 11 months of the pandemic, including Phoenix; Charlotte, North Carolina and Austin, Texas.

Zillow Senior Economist Jeff Tucker noted that “the mid-sized and more affordable metropolitan areas of the Sun Belt have seen a lot more people coming than leaving, especially more expensive and larger cities further afield. north and on the coasts. The pandemic has catalyzed the purchases of millennial first-time buyers, many of whom can now work from anywhere. ”

On that note, Tessar also pointed out that the most important trend that investors need to pay attention to is the permanent shift to remote working. According to a investigation According to the PulteGroup, 53% of consumers would rather buy a home with a dedicated home office, rather than buy one with an extra bedroom. Additionally, a Ledger study of 10,000 American workers found that 21% of the workforce was still telecommuting as of March 2021.

Even more recent research from Zillow suggests that more of the U.S. workforce will become remote over the course of the year, with 84% of workers wanting partial remote work after telecommuting during the pandemic. Zillow’s survey even suggests a generational shift will occur, as half of all millennials and gen z workers said they’re likely to look for a new job if their employer demands that they be. they are in person more than they would like.

Tips for new investors

As part of Tessar’s paramount point, investors should first look at affordable subways and counties that offer the largest inventory to meet the preferences of today’s consumers. At the start of the pandemic, states like Texas, Florida and Georgia experienced significant net in-migration, mostly from California subways and other expensive coastal cities. A recent report from Redfin noted that a buyer could buy three homes in Austin, Texas for the same price as a home in San Francisco or Los Angeles.

Only 7% of investors working with CIVIC Financial are newbie investors, “mainly because they’re all unique,” ​​Tessar said. “A lot of them come and see this investment as a hobby. They don’t realize how much effort it takes, and after experiencing several delays and cost overruns, they never want to do it again.

On the other hand, he said: “Experienced investors have reliable partnerships and a trustworthy team. They strategize by researching their domain, looking at a comparable inventory; they buy in bulk to allocate their assets and seek to invest in low cost rural areas where people move.

Essentially, today’s market is just as hostile to new investors as it is to first-time home buyers. Most investors are battered by rising prices, more buying than selling. The median resale price of reverse homes nationwide was $ 267,000 in the second quarter of 2021, generating gross profit $ 67,000 above the median investor purchase price of $ 200,000. This marks a 10-year low on fix-and-flip profit margins, according to ATTOM.

Rising material costs and labor shortages have already made home renovations difficult enough. The U.S. Bureau of Labor Statistics Purchase Price Index shows that, overall, building materials have increased 19.4% in the past 12 months and 13% since the start of the year. So, without a reliable team to work flexibly and allow for discount rates, newbie investors are left behind.

Most of the time, investors try to save money on purchases by finding a good deal or reducing closing costs. Closing costs incur additional expenses, such as set-up costs, call points, appraisal fees, title searches, title insurance, surveys, taxes, registration fees. deeds and credit file fees. Investors can often find good luck negotiating fees from lenders to keep costs down.

“As they say in golf, ‘work from the green to the back,’” said Tessar. “Consider what your end product would be. So if you want X amount of profit, what will your resale value be? What would your closing costs and renovation budget look like? Thinking this way can help set goals and define a better business model.

Going forward, many assume that the end of forbearance and the federal moratorium will provide investors with an opportunity to take hold of stocks. In recent months, the supply of used homes has been near its all-time low, but by early October, everyone will be taken out of federal aid. It is too early to say how much vacant homes this will leave, as many are in various stages of delinquency and may be able to pay off their mortgages.

A bigger concern is that renovator investors will renovate affordable homes, increasing their value so that they are no longer affordable for low-middle-class families. Tessar responds to this by saying, “A lot of houses and buildings have fallen into disrepair during the pandemic. There are health and safety risks that need to be addressed, so it is important that our repair investors make the necessary renovations. It increases the cost of housing and we don’t want to displace anyone, but it is important to build houses that are truly habitable.

About CIVIC Financial

CIVIC Financial Services is a private money lender specializing in the financing of residential investment properties not occupied by their owners. CIVIC provides mortgage brokers and real estate investors with a fast and profitable source of financing for their real estate investing needs.


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California Provides $ 25,000 to Low-Income Households for ADUs https://tinigard.info/california-provides-25000-to-low-income-households-for-adus/ https://tinigard.info/california-provides-25000-to-low-income-households-for-adus/#respond Fri, 24 Sep 2021 13:19:00 +0000 https://tinigard.info/california-provides-25000-to-low-income-households-for-adus/ California offers $ 25,000 to low-income households for ADUs (iStock) California plans to pay low-income homeowners $ 25,000 to build Grandma’s apartments in an effort to boost housing supply statewide. The grants will go to homeowners earning 80% or less of the area’s median income, according to the Los Angeles Daily News. Grandma Apartments – […]]]>
California offers $ 25,000 to low-income households for ADUs (iStock)

California plans to pay low-income homeowners $ 25,000 to build Grandma’s apartments in an effort to boost housing supply statewide.

The grants will go to homeowners earning 80% or less of the area’s median income, according to the Los Angeles Daily News.

Grandma Apartments – or accessory housing units – are typically one or two bedroom residences built on existing residential property.

The grant recipient must live in the main unit of the property, but otherwise there are no restrictions; the owner is also free to sell the property immediately.

Grants are available through cash refinancing mortgages or construction loans for ADU construction. This means that the lender must certify that the grandma’s apartment plans conform to the requirements of Fannie Mae FHA ADU.

Southern California ADUs cost an average of $ 300 to $ 375 per square foot to build and average 600 to 800 square feet, according to the report. Building an ADU in the area can cost between $ 200,000 and $ 315,000; pre-construction costs can go up to $ 15,000 per unit.

Earlier this year, the City of LA released 20 pre-approved ADU designs to speed up the construction process and save money.

The ADU issue has divided southern California. Housing-friendly camps praise the concept, but others have said it is conducive to abuse and could be exploited to build larger homes. [LADN] – Dennis Lynch


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Homeowners Earn $ 2.9 Trillion in Equity in Q2 2021 https://tinigard.info/homeowners-earn-2-9-trillion-in-equity-in-q2-2021/ https://tinigard.info/homeowners-earn-2-9-trillion-in-equity-in-q2-2021/#respond Thu, 23 Sep 2021 21:53:26 +0000 https://tinigard.info/homeowners-earn-2-9-trillion-in-equity-in-q2-2021/ Mortgage owners earned $ 2.9 trillion in equity in the second quarter of 2021, a 29.3% year-over-year increase, according to a new report through CoreLogic published Wednesday. This represents an average gain of $ 51,500 (!) Per borrower since the second quarter of 2020. The amount of equity in a property is determined by comparing […]]]>

Mortgage owners earned $ 2.9 trillion in equity in the second quarter of 2021, a 29.3% year-over-year increase, according to a new report through CoreLogic published Wednesday. This represents an average gain of $ 51,500 (!) Per borrower since the second quarter of 2020.

The amount of equity in a property is determined by comparing the estimated present value of the property to the outstanding mortgage debt (MDO). If the MDO is less than the estimated value, the property is considered to be in a net positive position and if the MDO is greater then the property is considered to be in a net negative position. CoreLogic based the report on public archival data for mortgaged residential properties that have a current estimated value.

States with the largest average year-over-year gain per borrower include the very hot western markets of California, Washington, Hawaii, Idaho, Utah and Arizona, the largest gains being recorded in California ($ 116,000 per borrower). Meanwhile, the Chicago-Naperville-Arlington Heights metropolitan area had the highest share of negative equity for homeowners in the second quarter of 2021, at 5.2%.

“Real estate wealth is at an all time high and will boost economic activity over the coming year,” Dr Frank Nothaft, chief economist of CoreLogic, said in a statement. “Higher wealth drives additional consumer spending and also supports room additions and other home investments, adding to overall economic activity.”

Compared to the first quarter of 2021, the total number of homes mortgaged with negative equity in the second quarter decreased 12% to 1.2 million homes. In total, owners of 163,000 residential properties regained their equity in the second quarter of 2021. Year over year, 30% fewer homes have negative equity in the second quarter of 2021 compared to the second. quarter 2020.

In addition, the national aggregate value of negative equity declined $ 18.9 billion or 6.6% in the second quarter of 2021 compared to the second quarter of 2020.

This sharp increase in equity is partly explained by the increase in consumer confidence, which has reached its peak highest level since the start of the pandemic in June 2021, according to the report. Among mortgage holders surveyed by CoreLogic, 59% of respondents said they felt extremely confident in their ability to stay up to date on their mortgage payments for years to come. In addition, the majority of borrowers who fell behind on their mortgage payments during the pandemic have a large home equity cushion, which has helped them to avoid foreclosure.

“Growing homeowners’ equity provides a solid financial cushion for tens of millions of Americans. For those most affected by the pandemic, equity gains will help play a critical role in avoiding foreclosure, ”said Frank Martell, president and CEO of CoreLogic, in a statement. “Based on the expected increases in economic activity and home values ​​over the next year, we expect to see further equity gains and a corresponding decline in negative equity, forbearance rates. and locking. “

Looking ahead, based on data from the second quarter of 2021, if home prices rose 5%, 160,000 homeowners would regain their equity, but if home prices fell 5%, 211,000 would fall below l ‘water.


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Billionaire investor John Paulson hiked his iconic bet against the real estate bubble in a recent interview. Here are the 11 best quotes. https://tinigard.info/billionaire-investor-john-paulson-hiked-his-iconic-bet-against-the-real-estate-bubble-in-a-recent-interview-here-are-the-11-best-quotes/ https://tinigard.info/billionaire-investor-john-paulson-hiked-his-iconic-bet-against-the-real-estate-bubble-in-a-recent-interview-here-are-the-11-best-quotes/#respond Wed, 22 Sep 2021 15:09:33 +0000 https://tinigard.info/billionaire-investor-john-paulson-hiked-his-iconic-bet-against-the-real-estate-bubble-in-a-recent-interview-here-are-the-11-best-quotes/ Jean Paulson. Spencer Platt / Getty John Paulson explained his iconic bet against the US housing bubble in a recent podcast. The billionaire investor explained in detail how he predicted and profited from a wave of mortgage defaults. Paulson also discussed his philanthropy and offered career advice to young people. See more stories on the […]]]>
Jean Paulson.

  • John Paulson explained his iconic bet against the US housing bubble in a recent podcast.
  • The billionaire investor explained in detail how he predicted and profited from a wave of mortgage defaults.
  • Paulson also discussed his philanthropy and offered career advice to young people.
  • See more stories on the Insider business page.

John Paulson explained his famous bet against the US real estate bubble in a recent episode of Finanze, a podcast hosted by Logan Lin, a 17-year-old college student in California.

The billionaire investor – who converted his hedge fund Paulson & Co into a family office last year – explained how he anticipated the collapse of the real estate market, shorted roughly $ 25 billion in securities and realized a windfall of $ 15 billion. His bet was immortalized in the book “The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History”.

Paulson discussed the short selling of a large number of Wall Street banks, mortgage lenders and rating agencies during the real estate boom of the mid-2000s. He also spoke about his philanthropic activities and offered some advice. to young people who choose a career.

Here are Paulson’s 11 best quotes from the interview, slightly edited and condensed for clarity:

1. “Underwriting standards just collapsed. The terms of the mortgage loan were so ridiculous that a borrower with no credit history, a horrible credit score, a never-repay history and no money to deposit could borrow 110% of the purchase price. of a house. You could actually buy a house with no cash and get 10% of the purchase price in your pocket, crazy as that sounds.

2. “It got to a point where the subprime mortgage lenders were like, ‘No credit, no money, no money, no problem. “”

3. “It was like a very simple physics problem. If the growth in house prices continued to slow down and turn negative, and defaults continued to rise, at some point the mortgage market would s ‘would collapse and those mortgage-backed securities would suffer losses. “

4. “It was not a roll of the dice for us. We understood the trends in the mortgage market so well that we could almost predict with a degree of accuracy when the market would fail.”

5. “Even though the underlying fundamentals were deteriorating, the market price did not adjust. It was an incredible opportunity to buy protection at a very low price, when it seemed obvious to us that these stocks would be lacking. “

6. “The problem was the machinery, the factories that were just prepared to buy mortgages, securitize them, and sell them. The lenders were just oblivious to what was going on and they couldn’t stop the machine.”

7. “We only sold the BBB tranche, where a 7% loss would mean these stocks would be extinguished. We predicted that the losses on these pools would be in the 20% range, so these things were toasted at our opinion.”

8. “It was a very, very skewed trade where you lost a very small amount if it didn’t work, but you made a fortune if it worked. That’s why it’s called the greatest deal ever. We have both the security and the right time and were able to make this comeback 100 to one. ”

9. “We focused on institutions that had large amounts of subprime or poor performing mortgages. We bypassed New Century, Fannie Mae, Freddie Mac, Citibank, Washington Mutual, IndyMac, Bear Stearns, Lehman Brothers, and we were 100% right. “

10. “Americans are a philanthropic people and we care about the well-being of other citizens. I grew up in a family where we weren’t rich, but we have always contributed to causes. – a treat for UNICEF, rather than candy. “

11. “It’s hard to be successful doing something you don’t want to do. Maybe you want to make movies, or maybe you are an artist, or maybe you like medicine, science, physics or math. “What do I like to do? What would I do if I wasn’t working? What am I passionate about?” – this is the field in which you should make a career. “


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Illinois Mortgage Company Now Licensed In Four More States https://tinigard.info/illinois-mortgage-company-now-licensed-in-four-more-states/ https://tinigard.info/illinois-mortgage-company-now-licensed-in-four-more-states/#respond Tue, 21 Sep 2021 23:33:00 +0000 https://tinigard.info/illinois-mortgage-company-now-licensed-in-four-more-states/ / EIN News / – Warrenville, September 21, 2021 (GLOBE NEWSWIRE) – mortgage compass is now licensed in the states of Virginia, Washington, North Carolina and South Carolina. They can help people buy their first home, refinance their mortgage, expand or downsize their home, renovate or build a home, buy a vacation or second home, […]]]>

/ EIN News / – Warrenville, September 21, 2021 (GLOBE NEWSWIRE) – mortgage compass is now licensed in the states of Virginia, Washington, North Carolina and South Carolina. They can help people buy their first home, refinance their mortgage, expand or downsize their home, renovate or build a home, buy a vacation or second home, or buy new homes. investment properties.

Despite the COVID-19 pandemic that ravaged the country in 2020, Fannie Mae predicted that the mortgage industry would not slow down and, in fact, 2021 would be a banner year for residential mortgage origination across the country. The government-sponsored firm predicted $ 4.1 trillion of origination, with refinancing loans contributing $ 2.7 trillion in total.

While the accuracy of these forecasts can only be verified in a few months, at the end of the year, mortgage companies across the country are doing their utmost to ensure they are well prepared, so to take advantage of the expected increased interest in consumer mortgages. Compass Mortgage seized this opportunity to expand its operations and integrate Virginia, Washington State, North Carolina and South Carolina into its advanced mortgage services ecosystem. Interested persons can see the company’s Facebook page to stay up to date with Compass Mortgage’s expansion efforts.

Senior loan officers Skip Brown (MLO – 139581) and Jeff Kincaid (MLO – 814064) were among the first to obtain their licenses in South Carolina. Asked what makes him tick, Skip Brown, who has over 16 years of experience in the mortgage industry, said, “What I really love about this business is helping people. I got into this a while ago because I love doing numbers, but really it’s about serving people. The fun part is when you take someone who doesn’t really understand the process, as it can be intimidating, and then encourage them as they go about what their options are, how everything works, what they are. he can afford, what he qualifies, and more. Once you get them through this process until the closing date, it is the reward for what you do in this business.

The company’s first senior loan officer in North Carolina, Laura Litzer (I-202637), said, “I love being a loan officer because I help individuals find their dream home and I love being a loan officer. helps them get the mortgage to buy it. . Another senior loan officer from North Carolina, Spencer Garrett (I-202891), said, “I have been a loan officer for almost 30 years now, and what I love most about the business is this. is helping customers settle into a home. Whether it’s a first, second or even third home buying experience for a customer, it is a big buy since a person will usually only buy 5 houses in their lifetime I like to be a part of that process.

Readers from these states can go to the company’s website and use an interactive country map to narrow down and find loan officers for their state. The website has detailed information about each loan officer, such as their registration number, contact details, and testimonials from past clients attesting to their skills and customer service.

In addition to the four states, the company is also licensed in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, Tennessee, Texas and Wisconsin. Readers can contact the Compass Mortgage team at the toll-free number 877-793-9362 between 8:30 am and 5:00 pm for all inquiries.

###

For more information on Compass Mortgage, contact the company here:

mortgage compass
Blake De Young | Vice President of Marketing
(630) 836-2512
Blakedeyoung@compmort.com
27755 Diehl Road, Suite 100 Warrenville, IL 60555


Blake De Young | VP of Marketing


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China’s real estate slowdown cools the economy https://tinigard.info/chinas-real-estate-slowdown-cools-the-economy/ https://tinigard.info/chinas-real-estate-slowdown-cools-the-economy/#respond Tue, 21 Sep 2021 01:22:42 +0000 https://tinigard.info/chinas-real-estate-slowdown-cools-the-economy/ Just a few weeks ago, sales of three real estate projects in Jinan, eastern China, skyrocketed. But in September, one of the busiest months to buy a new home traditionally, I felt sick. Project sales have stabilized or declined as authorities tighten access to mortgages, and developers are now offering discounts for moving units, even […]]]>

Just a few weeks ago, sales of three real estate projects in Jinan, eastern China, skyrocketed. But in September, one of the busiest months to buy a new home traditionally, I felt sick.

Project sales have stabilized or declined as authorities tighten access to mortgages, and developers are now offering discounts for moving units, even if they cause small losses. to augment.

“Government policies do not support home purchases,” said Zhou Miao, real estate agent at the Jinan branch of the PowerChina real estate group. “Many people have postponed their home buying plans until next year, hoping the authorities will ease credit controls.”

Jinan’s problem, with a population of 9 million, is part of a nationwide cooling that has swept through China’s real estate sector and has supported the country’s economic growth for decades, but reduced debt. However, we are currently under pressure from Beijing as we try to reduce prices. Control.

The crisis of Evergrande, the world’s most indebted developer and a symbol of leverage that has helped spur urbanization in China, is government instability working on one of the fundamental planks of the business model. I underlined my position.

After initially lowering interest rates in response to the coronavirus pandemic, the government has sought to avoid the risk of an asset bubble over the past year, including cracking down on borrowing from real estate developers.

He also added mortgage limits and rent caps in major cities. In cities like Jinhwan, where agents estimate it can take up to two months for a mortgage to be approved, authorities are placing their own restrictions on lending.

In China’s 70 major cities, new home prices rose only 0.2% in August from July. Official data showed the slowest growth rate in eight months last week. Other data highlighting the sharp decline in land purchases and sales show more clearly that government measures are starting to be felt.

For many economists, a housing slowdown poses a serious risk to the sector, which accounts for 28% of China’s gross domestic product, according to the Bank of America. It is a through demand for goods, labor and debt. Among the most important economic indicators in the world.

“I think it’s different this time,” said Tin Lu, chief economist of Nomura. He recently pointed to a “rapid deterioration” in China’s asset data and compared it to the 1970s attempt by former US Federal Reserve Chairman Paul Volcker. ..

The debt crisis in Evergrande has revealed the importance of real estate to the Chinese economy © Tyrone Siu / Reuters

“If there is a severe recession and a financial crisis occurs, of course they [authorities] It’s come back to some extent, but it’s not there yet. “

Lu pointed to data showing that new home sales in August fell 24% year-on-year in 30 cities and land sales fell 53% in volume in 100 cities. Both indicators deteriorated in early September, he said.

Declining sales Hit the EvergrandeWith nearly 2,000 billion RMB ($ 390 billion) in debt, it desperately needs cash to meet its obligations to its suppliers and creditors. An angry investor landed at the Shenzhen headquarters last week and demanded that the money be returned to him as expectations of failure rose.

Evergrande’s misery highlights the importance of the real estate sector to the Chinese financial system, but its weaknesses and the weaknesses of hundreds of other developers in China will also have serious consequences for the economy at large. .. Real estate investment grew 7% in 2020, supporting an industry-led recovery ahead of other major powers.

The flip side of its economic contribution was the threat of instability that prompted warnings from major regulators. Earlier this year, the government unveiled a “red line” that limits access to restrictions on debt and mortgages by real estate developers in banks as prices soared in major cities like Shenzhen.

Developers are offering discounts, even if it results in losses © Qilai Shen / Bloomberg

China has been trying for years to dampen speculation in the housing sector. Housing Minister Wang Meng Hui said in January that China will not use property to support the economy, reiterating President Xi Jinping’s 2017 slogan, housing, is for “living” rather than speculation . Recent government Cancellation of land auctions In large cities after previous constraints unintentionally caused price increases

“This time around, policymakers appear to be sticking to credit management metrics,” said Helen Chao, head of Asian economic research at Bank of America. “This time, the slowdown was” mainly caused by the policy tightening. Was done. “

Beijing also sees property as an important element in promoting “common prosperity”. Last week, the Housing Ministry announced a triennial inspection of the sector, bolstering the government’s momentum to strengthen oversight of the sector, from education to technology.

The broader economic recovery from the pandemic is still incomplete, and the Chinese economy is under increasing pressure due to the turmoil of a series of new recent infections that reveal prolonged weaknesses in consumption.

Lu said the decline in land purchases is likely to affect real estate investment and demand for building materials, as well as the income of local governments selling land to developers. However, others have pointed to the link between a campaign for common prosperity and Beijing’s approach to property.

“Beijing has more considerations than an economic perspective,” said Larry Fu, Macquarie’s chief economist for China. “No bad data for 2-3 months will be created [it] To loosen [monetary policy]”.

Beyond the data, it’s still unclear how central and local governments will respond to long-term weaknesses in sectors that have created enormous economic activity, jobs and wealth. In Jinan, a project has a third of the apartments available almost two years after its start. He charges 19,100 RMB per square meter, which is below the breakeven point of 20,000 RMB.

“Our top priority is to improve cash flow, not profitability,” said a company official.

China’s real estate slowdown cools the economy Source link China’s real estate slowdown cools the economy


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How to buy and sell a house at the same time https://tinigard.info/how-to-buy-and-sell-a-house-at-the-same-time/ https://tinigard.info/how-to-buy-and-sell-a-house-at-the-same-time/#respond Mon, 20 Sep 2021 15:34:46 +0000 https://tinigard.info/how-to-buy-and-sell-a-house-at-the-same-time/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money. Buying or selling a home can be a monumental task. Doing both at the […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money.

Buying or selling a home can be a monumental task. Doing both at the same time takes complexity to a whole new level.

If you are buying and selling a home at the same time, you will need to navigate a vibrant seller’s market as a seller and a buyer. You will benefit from a share of a sellers market, but you might face challenges as a buyer as well.

With fewer homes for sale than there are buyers, there is more urgency and competition in the market. However, there are signs that the housing market is starting to cool.

There’s no way to make the process of buying or selling a home completely predictable, but thinking about your preferred strategy will help you navigate the ups and downs a little easier.

While you can’t control the market, you can plan ahead to minimize the impact of any potential challenges that might arise.

Here are some expert tips to answer some of the questions that might arise when buying and selling your home at the same time.

Tips for buying and selling at the same time

When buying a new home and selling an old one at the same time, a transaction always comes first. Sometimes this happens first because of personal preference, while other times it is about finding the perfect home before you are ready to sell. With such a dynamic market, each of these moves should be carefully considered and a qualified real estate agent can help you strategize based on local market conditions.

Whichever route you choose, these expert tips can help you make a successful transaction and minimize the stress of buying and selling at the same time.

Buy a house before you sell

While some buyers are able to buy a new home without waiting to sell their current home, many do not have this luxury.

For people who need the proceeds of a sale to move forward with an offer on a new home, this is where an offer contingency comes in. This essentially means that the buyer has a set amount of time to sell their current home to help finance the new home. purchase. While “contingent offers aren’t that strong,” there are always ways to help, says Shelby osborne, CEO of Five Pillars Team at eXp Realty in Charlotte, North Carolina.

For homebuyers planning to make a conditional offer, consider the following:

  1. Request an extended shutdown. While most buyers want to move into their new home right away, you still need some time to sell yours. As part of your offer to purchase, request a 60-day extended close to allow more time to find a buyer.
  2. Have your current home ready to go to market. By prepping your home for listing (fresh paint on the walls, decluttering, and spacious staging), you’ll be ready to advertise and attract a buyer as soon as you get your new home under contract. Osborne recommends “talking to your agent about how to prepare your house for sale”.
  3. Make an offer conditional on the sale of your current home. Having this contingency in your purchase agreement allows you to opt out of the purchase if you are unable to sell your home. This possibility allows you to cancel the purchase without any legal consequences and may prevent you from losing your deposit.
  4. Make an offer with a home inspection Where evaluation possibility. Contingencies are clauses intended to protect the buyer and seller to formally signal their interest assuming certain conditions can be met.
  5. Using a HELOC to finance your deposit. Homeowners with an established HELOC can use their lines of credit to finance the down payment on a new home. When the home sells, the HELOC balance is refunded from the sale proceeds. Just make sure you can afford the extra monthly bill that comes with borrowing that money.

Benefits of buying first

  • Ability to take your time to find the right home
  • Ensures you have a new home to move into when your old home sells
  • Only pay moving costs once

Cons of buying first

  • You may need to make two mortgage payments at a time if your old home doesn’t sell
  • More difficult to qualify for the new loan while making payments on the old mortgage
  • Financial constraints can cause you to accept a lower offer on your home

Sell ​​a house before you buy

In some cases, it will be a good idea to sell your home before you think about your next move. “Some sellers sell and move into rental property or rent to the buyer” to make a profit and cash in on their equity before deciding on their next move, says David lee, group owner David Lee with Keller Williams in Yorba Linda, California. Some sellers wait for lower prices before buying again. Others are considering moving to a lower cost area.

If you are considering selling your home before buying a new one, keep these tips in mind:

  1. Request a sale-leaseback to give extra time. A sale-leaseback allows sellers to “rent” their home for up to 60 days after selling it. Lee says a sale-leaseback “gives sellers more time to locate a property or if something is delaying the purchase.”
  2. Place personal items in a storage unit. Sellers should declutter their home before taking pictures and listing their property. Storage units can hold additional personal items if they have to live temporarily in one location until they find new housing.
  3. Buyers without unforeseen events make stronger offers. If you don’t have to sell your home first when making an offer for a new home, one seller will consider your offer stronger than others. When you first sell your home, you know exactly how much your down payment will be, which can also strengthen your offer.

Benefits of selling first

  • Prevents two mortgage payments while waiting for the sale of your old home
  • Easier to qualify for the new mortgage without the existing mortgage payment on your credit report

Disadvantages of selling first

  • Could get you stuck without a home for an extended period of time
  • Additional storage and moving costs for all your items
  • Home values ​​may continue to rise before you can get an offer accepted
  • Interest rates can go up before fixing a rate

Why knowing your market is important

Knowing what type of market you are in can help you set the right expectations before shopping for a home or putting your property up for sale. Here are some characteristics and trends to help you understand what type of market you are in and what that means to you:

Characteristics of a buyer’s market

  • The buyer is more likely to negotiate the price
  • Sellers are generally more willing to lower their sale price, approve requested repairs, and agree to other terms favorable to the buyer.
  • Houses stay on the market longer
  • You will see list price drops
  • There isn’t a noticeable influx of people lining up to check out each Saturday morning open house

Characteristics of a seller’s market

  • Seller can ignore offers below list price
  • Buyers will need a higher purchase price and a larger down payment to make their offer more competitive
  • Buyers can get creative with their offers, for example by sharing a personalized letter to make an emotional appeal to sellers
  • Buyers are more likely to overbid or exceed their purchase budget
  • Buyers could be paying too much for a home in need of major work or upgrades
  • The buyer is more likely to eliminate the unexpected

Be aware that eliminating contingencies reduces the possibility of opting out of the transaction if something bad happens. For example, removing a home inspection contingency could mean you aren’t aware of expensive repairs until you’ve purchased the property.


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People in these states have the hardest time paying their rent https://tinigard.info/people-in-these-states-have-the-hardest-time-paying-their-rent/ https://tinigard.info/people-in-these-states-have-the-hardest-time-paying-their-rent/#respond Sun, 19 Sep 2021 14:00:48 +0000 https://tinigard.info/people-in-these-states-have-the-hardest-time-paying-their-rent/ Housing prices are on the rise across the country, from buying prices for homes to rental prices for apartments. Unfortunately, with inflation also at a level not seen in 13 years and the minimum wage stagnating, housing affordability is increasingly an issue. The amount you pay for rent where you live depends on several factors, […]]]>

Housing prices are on the rise across the country, from buying prices for homes to rental prices for apartments. Unfortunately, with inflation also at a level not seen in 13 years and the minimum wage stagnating, housing affordability is increasingly an issue.

The amount you pay for rent where you live depends on several factors, including the state where you live, whether the area is rural or metropolitan, and the size of the residence you require. We looked at the median rent price by state and the median household income in each state to determine which state residents might have the most difficulty paying rent.

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No surprises here: you’ll pay more for a panoramic view

Based on median rent and median household income data from the US Census Bureau, the three states where you will spend the largest percentage of your income on rent (for a one-bedroom apartment) are Florida, California and Hawaii.

Florida has a median rent of $ 1,175, which doesn’t sound too bad, but its median household income is only $ 55,660, which means about 25.3% of a person’s annual income. housekeeping is spent on the rent bill alone. Meanwhile, California and Hawaii have significantly higher median rent prices – $ 1,503 and $ 1,617 respectively – but their median incomes are also significantly higher at $ 75,235 for California and $ 81,275 for Hawaii. This means Californians spend a total of 24% of their income on rent and Hawaiians spend around 23.9%.

Also keep in mind that the median rents in this data are for one-bedroom apartments, meaning that the majority of households (i.e.

Minimum wage workers don’t stand a chance

Median household incomes in these three states are well above the minimum wage. People earning minimum wage in these states unfortunately have no chance of comfortably paying the median rent for a one-bedroom residence.

Californians earning the state’s minimum wage of $ 14 an hour are expected to spend 62% of their income on rent, while Floridians earning the new state average of $ 10 an hour (as of September 30 2021) will spend 67.8% of their income to rent. Hawaiians are on a whole new level of difficulty. Making just $ 10.10 an hour at minimum wage, they are expected to spend 92.4% of their annual income to pay the median rent for a one-bedroom apartment.

It’s a big problem. It is recommended that people spend no more than 30% of their income on housing. It’s so that they have room in the budget to afford things like groceries, gasoline, child care, payments and vehicle maintenance, and many other things. Someone who spends 60%, 70%, or more than 90% of their income just on rent would not have enough money in the budget to account for these other items, let alone build an emergency fund. .

Honorable mention

Although Washington, DC is not a state – at the moment – it deserves an honorable mention here. Data from Profitable shows that the median rent for a one-bedroom apartment in Washington, DC in 2020 was $ 2,324. This is higher than the average in any state. DC also has the highest median household income, at $ 85,203, but that still makes the percentage of income spent on rent in DC a whopping 32.7%. And again, families who need more than a bedroom are considering even higher housing costs. Not to mention the additional costs for things like utilities and, in some cases, parking or a garage.

What to do if you’re having trouble paying your rent

Whether or not you live in one of the states mentioned above, if you are having trouble paying your rent, there are some options you can follow.

Your personal situation will determine which of these options will work best for you. If you’re single and live in a two-bedroom rental, a roommate might be the perfect solution to cut your rent in half. If you are married with children, getting a roommate or moving abroad can be more difficult. You may instead need to focus on making more money from your job, than that means asking for a raise or changing jobs or professions. Side activities are also always a popular choice as the possibilities are almost endless, and many side activities can be extremely lucrative if you have the time to devote yourself to them.

Mortgage rates are expected to stay low for at least the next two years. So, once new homes come onto the market and the competition for housing slows down, we should hopefully see home purchase prices and rental prices come down and give landlords and renters a boost. little much needed relief. But until that happens, renters and landlords will need to buckle down, do their research, and make the most of the options available.


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Recent inflation can be blamed on government spending https://tinigard.info/recent-inflation-can-be-blamed-on-government-spending/ https://tinigard.info/recent-inflation-can-be-blamed-on-government-spending/#respond Sun, 19 Sep 2021 08:40:28 +0000 https://tinigard.info/recent-inflation-can-be-blamed-on-government-spending/ Brenda P. Wenning For door-to-door salespeople, life has never been better. But for buyers, panic could set in, as house prices jumped at an annual rate of 23.4% in June, according to the National Association of Realtors. With the demand for housing far outstripping supply, bidding wars have become commonplace. Buyers sometimes pay six figures […]]]>

Brenda P. Wenning

For door-to-door salespeople, life has never been better. But for buyers, panic could set in, as house prices jumped at an annual rate of 23.4% in June, according to the National Association of Realtors.

With the demand for housing far outstripping supply, bidding wars have become commonplace. Buyers sometimes pay six figures on the asking price and forgo inspections. Homes sell almost as fast as they are listed, and some buyers are bidding on homes they have never seen in person.

Low-income Americans in need of housing probably find the American dream of homeownership more elusive than ever.

The St. Louis Fed found that the median selling price of a home rose from $ 322,600 in the second quarter of 2020 to $ 374,900 a year later, an increase of 16.2%. In Massachusetts, which has the third highest home price in the country, an average home sells for $ 439,541.


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