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Single Female Households Continue To Grow

2012-02-28T14:02:00.000-05:00

Single female households continue to grow: About 20 percent of recent home buyers were from single females, according to National Association of Realtors® data. Single female home buyers represent a growing segment of homeowners. An article at Realty Times notes the following characteristics female buyers tend to want in a new home:

Proximity to family. Female home buyers tend to say they want to live closer to their extended family than their job.

Safety. They’ll likely want to review crime trends for neighborhoods, streets, and buildings as safety tends to be a big priority for female home buyers.

Traditional use. According to a recent Coldwell Banker survey, men are four times more likely than females to turn an extra 12' x 12' foot space into an entertainment room, but females tend to be more traditional in their sense of space. Realty Times notes that while you may point out to a male home buyer all the extra rooms that can be made into media centers or entertainment rooms, a woman is more likely to respond to seeing a house how it already is. “She’ll come up with her own plans,” the article notes.

Source: Realty Times

Housing Affordability

2012-02-28T13:54:00.000-05:00

Housing affordability rose to a record high during the fourth quarter of 2011, which means a home buyer’s purchasing power is greater than it ever has been before, according to the National Association of Home Builders Housing Opportunity Index. The index showed that 75.9 percent of all new and existing homes sold in the fourth quarter were affordable to families earning the national median income of $64,200, according to the index. That marks the highest percentage recorded in the index’s 20-year history. "Today's report indicates that home ownership is within reach of more households than it has been for more than two decades," says Barry Rutenberg, chairman of the National Association of Home Builders.

Source: National Association of Home Builders

The Negative Effects of Positive Growth

2012-02-27T17:47:00.000-05:00

We have been accused of being too optimistic in our projections. For example, last year when economists were calling for a double dip recession, we downplayed this threat. When analysts have pointed towards a housing market that will not recover for years, we pointed out the economic factors which could turn things around quickly. These factors include projected population growth, increased household formulation in a recovery and continued governmental aid for the sector. Today, we are going to look at the other side of the coin. What if the economy starts to heat up from here? Certainly, the stock market is displaying strength which can be seen as the market's belief in the economy's growth potential. The fact that Europe has approved the Greek bailout package is another positive sign.

Economic growth is what everyone has been rooting for. But it does not come without risks. What are these risks? We will cite two -- the risk of inflation and the risk of higher interest rates. The Federal Reserve Board has seemed to discount the risk of inflation, but if there is no risk then why has the price of gold continued to be so strong? Gas prices are now approaching $4.00 per gallon, a price that will affect consumer purchasing power. The Fed also has told us that rates will stay low for at least two years. We need to point out that the Fed does not really "control" rates. If the economy keeps recovering, rates will rise and the Fed will have no choice but to renege on its forecast. Actually, the Fed would love to do that because that means the economy and especially the housing market is on the road to recovery. Everyone has been hoping for a stronger recovery. We just need to point out that if this recovery becomes stronger, there are negative factors we will have to deal with. If the result is more jobs and a healthy economy, it is a price worth paying. For consumers who have been waiting to purchase a home or a car -- remember that you will get no warning that rates are about to rise and the sales are over.

Source: www.newsletterproonline.com

Homes for Baby Boomers

2012-02-21T14:49:00.000-05:00

Baby boomers that plan to move for retirement are looking for smaller, affordable homes that are easily accessible to medical care and near their family, according to a poll of more than 1,000 adults born between 1946 and 1964 conducted by Associated Press-LifeGoesStrong.com. Baby boomers who make more than $100,000 a year are the most likely to say they plan to buy a new home during retirement. For boomers who plan to purchase a new home, the most important factors cited in a home for retirement included:

Smaller home (40%)
Near medical offices or hospitals (39%)
Different climate--perhaps warmer (30%)
More affordable home (25%)
Being closer to family (15%)

About 10 percent of baby boomers said they will search for a new city to relocate to that offers more services for them in retirement. Only 8 percent of baby boomers surveyed say they want a larger home for retirement, the poll finds. However, more baby boomers say they don’t have any plans to move after they retire, the poll finds.

Source: The Associated Press

Breaking News: Housing Market

2012-02-20T12:12:00.000-05:00

Breaking News: The government budget for this year includes a hike in the cost of insurance for Federal Housing Administration mortgage loans. It is expected that this increase will go into effect shortly, however consumers that act quickly may have the ability to beat the increase. If you are thinking about refinancing or purchasing, time is of the essence.
The U.S. housing market will begin to mount a turnaround this year, building toward a solid recovery in 2013, according to a forecast by the chief economist of a homebuilding industry trade group. The outlook by National Association of Home Builders Chief Economist David Crowe calls for U.S. sales of new homes and single-family home construction to improve this year compared with 2011, when they hit record lows. The forecast still leaves new home sales and construction well below levels of a healthy housing market, however. That reflects the severity of the industry's downturn, and suggests the housing market could be years away from full health. "I'm looking at 2012 as sort of a ramping event to get a much more solid recovery in 2013," Crowe said in a telephone interview. The economist, who gave his forecast at the trade association's annual conference in Orlando, Fla., sees sales of new, single-family homes climbing 19% this year to 360,000. Next year, he expects those sales to rise a whopping 40% to 505,000. Crowe's outlook also hinges on unemployment staying below 8.5% and the economy adding more jobs. And he's assuming that tight lending requirements will ease this year, enabling more homebuyers to qualify for financing.

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Source: Investors Business Daily
www.newsletterproonline.com

Buying a Foreclosure

2012-02-16T11:23:00.002-05:00

Buyers are drawn to distressed properties. After all, "the No. 1 reason to buy a foreclosure is the potential for a good bargain," says Daren Blomquist of RealtyTrac.com. Indeed, discounts often can range from to 20 or 40 percent off on a short sale or foreclosure compared to a sales price of a nondistressed home. But despite the big bargains, buyers need to tread carefully before jumping in. Blomquist provides some of the following tips in buying a foreclosure in a recent article at Business Insider.

Beginners may want to focus on REOs. New buyers may want to avoid short sales, which often come with lengthy negotiations or foreclosure auctions that often require all-cash payments. On the other hand, REOs, Blomquist says, can be similar to a traditional home sale in some ways and can offer some of the biggest bargains. "A bank isn't emotionally attached to a REO; it's just looking to recoup as much of its losses as possible," Blomquist told Business Insider. "So the lender is often more willing to capitulate on price."
Don’t forget the inspection. Many distressed properties are sold “as is” and can come with a host of problems if buyers aren’t careful. Blomquist recommends getting a home inspector to inspect the home prior to any purchase. Buyers will then have a list of any potential problems with the home, along with estimates for costs of repair. Buyers can then use the list to possibly negotiate a lower price, Blomquist says.
Don’t expect appreciation right away. "It's important to not make the mistake of counting on any major price appreciation in the near term," Blomquist advises buyers. "We're still in a depressed market, and we're probably not going to see home prices appreciate much for quite some time."

Source: Business Insider

Purchasing A Home Using Someone Else’s Money

2012-02-15T16:52:00.000-05:00

Home ownership in America has reached record levels in the past ten years. More than two-thirds of Americans now own their own homes. This is great news for those who are pursuing the American Dream—because morepeople are achieving this dream.

Fannie Mae has conducted several American home ownership studies in the past. Among other things, they measured the desires to achieve home ownership and the impediments to achieving these desires. One would think that the major impediments to purchasing a home would be not having enough income to qualify or poor credit histories. In reality, the number one obstacle to becoming a homeowner in America is lack of capital.
Knowing the significance of this obstacle, the industry has done much to make obtaining real estate “cash friendly.” While the surging economy has provided much impetus for increasing real estate purchases, industry initiatives have really paved the way to facilitate the whole process.
In this article, we will highlight some of the ways a prospective home purchaser can obtain the capital needed to purchase his/her first or even a move-up home—

Lower down payment programs— In the old days, the VA (open only to active military and vets) and Rural Housing Programs were the only no-down payment options and FHA had a minimal (less than 5.0%) down payment requirement. Then many conventional programs decreased their down payment requirements, however, this trend has reversed itself in the past few years. Today, the VA and Rural Housing Programs still offer no down payment options and FHA is still less than 5.0% down for borrowers with good credit. In addition, some state and local housing agencies have programs that will lend or grant the money for the downpayment for qualified low-to-moderate income borrowers.

Gifts—Typically a gift from an immediate relative is allowed for a purchase transaction. In the past, only FHA and VA loans allowed what is called 100% Gifts. This term means that the total cash necessary for the transaction is allowed to come from a gift. Conventional programs typically required at least 3% to 5% of the money to come from the purchaser’s own funds.

Seller Contributions—Some of the money needed for closing costs typically can be paid by the seller in a purchase transaction. On VA loans, the seller can pay all closing costs. On FHA loans, the seller can pay up to 6.0% towards closing costs—but require a small minimum from the borrower’s funds. On minimum downpayment conventional loans, the seller can pay up to 3.0% of the sales price towards closing costs.

Lender-paid closing costs—With the advent of more complex secondary market vehicles, lenders have been able to develop more sophisticated mortgage products, some of which lessen the cash needed to purchase. For example, the purchaser can opt for a higher rate, no-point mortgage which in fact lessens closing costs. An even higher rate may mean that the lender can advance a loan which will creditadditional closing costs associated with the home purchase. In effect, the purchaser is financing their costs through a higher rate.

Not to be outdone, mortgage insurance companies have offered an option which has helped lessencash requirements. Conventional mortgage insurance in the past required an up-front cash payment of more than 1.0% of the sales price. This option allows the monthly payment to be increased and eliminates the up-front cost. Under new rules and options the payment may be tax deductible as well.

Loans—Most programs allow the purchaser to borrow the money needed to purchase. Some even allow unsecured loans for this purpose.

Source: Newsletterproonline.com

Home-Within-a-Home Concept

2012-02-06T12:41:00.000-05:00

Builders are revamping product offerings to serve families with multiple generations living under one roof. Faced with demographic changes, they're moving in with new ideas on how to accommodate this growing segment of the population. Lennar Corp. is one an example of a homebuilder practicing innovation at a time of great change, according to John Burns, chief executive of John Burns Real Estate Consulting. Lennar is now selling what it calls a home-within-a-home. The company is offering houses that feature a full home connected to a smaller apartment. The home-within-a-home concept is designed to give families more versatility in living arrangements. For example, if grandma or grandpa moves back in, the NextGen home offers them a private suite with a bedroom, living area, kitchen, bathroom and a separate patio. The living areas are separated by double doors, for example, if more privacy is desired. Prior to the baby boomers, adulthood was not defined by owning your own property. In fact, older generations stayed within the confines of the family unit. At the time, this arrangement was considered a sign of prudence and fiscal conservatism since it gave older generations a place to stay and younger generations a place to live, while saving money to secure a solid future.

Source: Yahoo Finance
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Yes to the Green House

2012-02-02T15:51:00.000-05:00

While home sales may be sluggish in many parts of the country, more buyers are placing an emphasis on green -- with some studies showing that green homes can sell for higher dollar than non-green homes. In Portland, Ore., an analysis from the Earth Advantage Institute found that green-certified new homes sold, on average, for 8 percent more than non-certified green homes--and in one of the counties included in the study even more than 23 percent higher. Earth Advantage Institute analyzed sales data from May 2010 through April 2011 from the Portland Regional MLS. The study found that the sales price was even higher for existing homes outfitted green -- an average of 30 percent more, and one county reporting a more than 61 percent premium on green-certified homes. The green certifications on the homes were from Energy Star, LEED for Homes, Earth Advantage, or an Earth Advantage/Energy Star combination. This is the fourth year in a row that the Earth Advantage Institute has conducted such a study and has found green-certified homes sell for higher prices than non-certified homes. “There's certainly a premium there to be had,” says green builder Josh Wynne from Sarasota, Fla. “Clients are naturally skeptical of green building. If you're disingenuous or sell green as an upgrade like a granite counter,” it won't work. But the hook, experts say, is to promote the upgrades by showing the energy savings that green homes can offer.

Source: EcoHome

Time to Buy

2012-02-01T16:05:00.000-05:00

Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income. First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when rates are taken into consideration, houses are the most affordable they have been in decades. Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors. But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal. Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal. But for most home buyers, rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. As a result, house payments are more affordable than they have been in decades.

Source: Smart Money

Good News for Renters.

2012-01-26T15:18:00.000-05:00

Borrowers who have a history of paying rent on time may see a boost to their credit score. Experian, a leading credit report company, added a section to its credit reports last year that reflected on-time rent payments, which helped give a boost in the credit scores to some on-time rent payers. Now the two other major credit reporting companies are following suit. CoreLogic and FICO recently announced they are also adding a score that reflects payment histories from landlords, The New York Times reports. “Evidence of positive rental payments could be a plus for consumers,” Joanne Gaskin, FICO’s director of product management global scoring, told The New York Times. Nearly half of high-risk consumers saw an increase of 100 points or more after their rental history was added to their credit report, says Brannan Johnston, the managing director of Experian’s rent bureau. Consumers with average or higher credit scores, on the other hand, did not see any major difference to their scores. For former home owners who lost their homes to foreclosure, they may be able to rebuild their credit histories more quickly now by showing they are “very responsible renters,” Tim Grace, senior vice president of CoreLogic, told The New York Times.

Source: The New York Times

Rental Market Trends

2012-01-25T13:57:00.001-05:00

The apartment vacancy rate is at its lowest level since late 2001 as the rental market continues to soar, according to the latest fourth-quarter data by Reis Inc. As demand increases, the vacancy rate for apartments dropped in the fourth quarter to 5.2 percent compared to 6.6 percent a year prior. “Multifamily property has been the star of the real-estate sector for more than a year, generating profits for landlords but headaches for renters struggling with the economic downturn,” an article in The Wall Street Journal notes. “Demand has swelled from people being foreclosed out of their houses as well as those unable or unwilling to buy.” Landlords are also raising their rents. Asking rents moved up 0.4 percent in the fourth quarter, averaging $1,064 a month nationwide — compared to $1,026 in 2009. New York City continued to have the highest rent in the country at $2,876 a month. Meanwhile, as the rental market takes off, builders are rushing to play catch up in building new units to meet the demand. In 2011, Zelman & Associates estimates that more than 173,000 units were started, and about 225,000 and 280,000 starts are expected in 2012 and 2013.
Source: The Wall Street Journal (Newsletterproonline.com)

Homeownership Better than renting?

2012-01-23T14:58:00.000-05:00

Given the difficulties some people have with qualifying for a mortgage these days and how hard it can be to sell a house in some parts of the country, many people are thinking that renting a house – rather than buying one – can look pretty good. If you rent, you won’t have to worry about being foreclosed on or having to sell short. However, now can also be an ideal time to buy a house. And home ownership conveys a number of psychological and financial advantages. Below are some factors to consider when deciding on renting versus buying.

Equity: Traditionally home ownership has been seen as a good investment because you are building up equity in the house. They’re not making more land, so demand in the long haul should only increase. While real estate values may go down for a short time, over the long haul property prices almost always go up. Therefore, if you are staying put for a while, the chances are good you will see a good profit, based on the equity you have built up. Rent, on the other hand, is money you will see no return on.

Tax Breaks: You can deduct the interest you pay on your mortgage from your income taxes; that means that Uncle Sam is essentially your partner in home ownership. The early part of a mortgage is mostly interest payments, so you will be able to deduct most of your payments in the early stages. You can also deduct property taxes and some people can deduct the costs of a home office. When you are figuring in the cost of a mortgage, be sure to account for these tax benefits. In addition, you don’t have to pay taxes on some of the profit when you sell the house. If the home is your primary residence, you have no taxes on the first $250,000 of profit if you’re single ($500,000 if you’re married).

The Market: There are some arguments in favor of buying a house in today’s economic climate. Home prices are down in most areas. Even in places where property is expensive, it’s probably cheaper than it was a few years ago. In addition, mortgage rates are at an all-time low. If you get a 30-year fixed mortgage now you will lock in a low rate for the life of your loan. However, these advantages apply only if you are staying in the house for a while. Real estate is a non-liquid investment; it can be hard to sell in today’s environment, meaning that a lot of your money is tied up and unavailable.

Psychological Advantages: Many Americans like owning their own home; it’s the American dream. Not only is it emotionally satisfying, but it also gives you a secure place to live and a community in which you can put down roots. Renters often feel that they are transitory in the area. Likewise, owners have creative control over their homes. If you want to paint the outside purple or add an addition, you can do so. You also have control over maintenance issues – what to maintain and when the work gets done.

When Renting Makes Sense: There is no one-size-fits-all answer to the question of renting vs. buying. It depends on each individual’s situation. If you think you will live in an area only 5 years or less, most experts say it makes more sense to rent; it’s hard to recoup your investment in less time. If the home prices are overvalued in your area, renting may be a more sensible option. Also consider renting if your job situation is shaky or your credit is not good. You don’t want to get into a position where you can’t pay the mortgage. Renting might be better if you’re someone who doesn’t want to pay for maintenance or deal with the hassles of finding reliable plumbers and electricians.

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Focus on Europe

2012-01-18T16:17:00.000-05:00

In all of our assessments regarding the future of our economy, there is always a warning attached which goes something like this -- unless the European debt crisis explodes. We had some good news regarding the economy in the past several weeks, especially with regard to the all-important employment sector. Last week there were not as many economic releases to focus upon. This enabled the markets to refocus upon events in Europe and it is reassuring that, at least for the moment, the crisis does not seem to be boiling over. The news from Europe seems to be positive one day and negative the next. What we need is our economic recovery to be as strong as possible right now to help lift Europe out of its malaise but also withstand weakness coming from Europe.

Corporate earnings reports also started flowing this week. Many have made a big deal about the fact that corporate earnings experienced double digit growth in the past few years but this did not result in the significant hiring of new workers. Well, now workers are being hired and the pace of earnings growth is expected to slow this year. What we can't have is corporate earnings slowing too much so that the momentum of a stronger labor market is halted. Expect there to be a significant focus on results reported during each earnings season this year. Meanwhile, though oil prices closed the week lower, the stronger economic news has coincided with a general rise in the price of oil. Much of this movement has been disguised because seasonal factors have kept gasoline prices low. Eventually gas prices will start rising if oil continues to settle northward of $100 per barrel. This would be one of the costs of a "better news" economy.

Source: Origination Pro

Housing Market Getting Better?

2012-01-16T16:30:00.000-05:00

The worst for the housing market may finally be over, according to housing experts in a recent article in Kiplinger. After median home price have dropped nearly 40 percent nationwide, a rebound is taking shape -- although, housing experts say, the market may stay flat for awhile before gradually ticking up. According to housing experts in a recent Kiplinger article, here are some predictions for the real estate market in the coming year:

Home prices stabilize: Mark Zandi, chief economist at Moody's Analytics, predicts that home prices nationwide may still drop another 3 to 5 percent in 2012, but the new year will most likely finally bring a leveling off of home prices before gains start to take shape in 2013. When markets do begin to stabilize in the new year, “price appreciation tends to spread unevenly, creating a lot of confusion about where the recovery is occurring and when,” David Stiff, chief economist at Fiserv Case-Shiller, told Kiplinger. “Even within a single city, more desirable neighborhoods will stabilize first, while prices in other neighborhoods may fall at a rapid pace.”

Housing affordability high: Housing affordability -- the ratio of median home prices to median family income -- will likely remain at record levels in 2012. Homes in many cities are “substantially undervalued,” the Kiplinger article notes. That may even lead to a mini bubble with double-digit spikes in prices, such as an increase of 10 to 15 percent in a given year in some markets, housing experts say.

Low rates: Helping to keep affordability high, low interest rates are expected to continue on in 2012 -- at least the first part of the year, economists predict. The 30-year fixed-rate mortgage, the most popular among home buyers, has been hovering under a 4-percent average the past few weeks, staying in record low territory. Rates are expected to stay between 4 to 5 percent in 2012, predicts Guy Cecala, publisher of Inside Mortgage Finance, an industry publication.

Sales increases: The National Association of Realtors® has already been showing a tick up in sales taking shape with increases in existing-home sales during the summer and early fall of 2011. High inventories of homes continue to flood the market but a drastic slowdown in new-home building the past three years is “gradually easing the surplus,” the Kiplinger article notes.

Foreclosures: Foreclosures remain the problem and still plague many markets. After a slowdown with lenders processing the paperwork, foreclosures have begun to pick up once again. About 1.84 million home loans are 90 days or more delinquent and 2.17 million have finished the foreclosure process but aren’t up for sale yet, according to RealtyTrac data. Alex Villacorta, director of research and analytics at Clear Capital, told Kiplinger that he predicts regardless of the downward price pressure caused from foreclosures, overall home prices won’t fall as long as lenders bring additional foreclosures to the housing market at a steady pace.

Source: Kiplinger

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List a Home During the Winter Holidays

2011-12-20T16:03:00.000-05:00

Sixty percent of real estate professionals advise their sellers to list a home during the holidays because it’s a good time to sell, according to a new survey conducted by Realtor.com. Why are the holidays such a good time to sell? Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61 percent say less competition from other properties make it a great time to sell. Plus, 17 percent of agents say the cold weather is actually a benefit, making homes feel cozier. But online listing photos become even more crucial during the holiday season, according to the survey. Slightly more than half of agents say that the photos are more important because sellers tend to offer less open houses around the holidays, and so the online photos help buyers decide the properties to see and which ones to possibly bypass. The biggest hurdles sellers face during the holidays, however, are keeping a home ready to show (clean and staged) as well as winter weather conditions and buyers’ vacation schedules, the Realtor.com survey found.

Source: Realtor.com

Should You Accept The Offer?

2011-12-09T16:53:00.000-05:00

Sellers can feel pressure when trying to decide whether to accept a buyer offer on their home. While real estate agents can advise clients on whether to accept an offer, the final decision is up to the seller--and it can be an agonizing one. In the current buyer’s market, buyers aren’t shy about making lowball offers to sellers. So when should you accept or decline an offer? Realty Times offered the following questions to consider.

Source:www.snackiepoo.com

Is the buyer pre-approved? You may not want to risk a deal falling through because the buyer wasn’t pre-approved for a loan.

Do you need to move quickly? If you need to move quickly--due to a job relocation or to avoid foreclosure--you may need to accept an offer that is less than what you want.

Can you accept a loss? Be sure to take closing costs into consideration too as you weigh whether you can even afford to agree to the buyer's offer.

Realty Times also suggests sellers take into account how long their home has been on the market and the number of showings. Such considerations also can help sellers determine whether getting a better offer soon is realistic and would be worth the wait...

Source: Realty Times

Selling a Home in the Winter

2011-12-08T17:13:00.000-05:00

Traditionally, the time from Thanksgiving to New Year’s Day can be some of the slowest time of the year for home buying due to the holidays and the often less-than-perfect weather. But that doesn’t mean sellers can’t sell during the winter months. In fact, with decreased inventories, sellers may have a better chance to standout and face a buyer pool with more urgency to settle down. Experts offer some of the following tips for selling a home in the winter:

•Stage it. Stagers can arrange furniture so that selling-points in a home don’t get overlooked, paint rooms inviting colors, and have the know-how to give a home a cozy winter feel. Display photos of the home that also show it in warmer summer months. And don’t forget to turn up the thermostat in the home so buyers are comfortable from the moment they step through the door."If you have a vacant house in winter with the heat turned down to 50, chances are someone will make a very low offer," Loren Keim, a real estate broker, told the Associated Press.

Source of Photo: www.lasvegashousestaging.com

•Price it right. "If it’s priced properly, it will sell any day of the year," Katie Severance, a broker for RE/MAX in Upper Montclair, N.J., told the Associated Press.

•Show the way. Keep sidewalks and driveways clear of snow, ice, and leaves–giving potential buyers a clear path to your listing’s front door.

•Light it up. There’s less daylight in the winter months so it’s even more important to keep all the lights on as well as open blinds and drapes for natural light. Keep the home well-lit even when you’re not there so the home still looks inviting to passersby who drive by in the evenings after work.

Source of Photo: www.energizedseller.com

Source: The Associated Press

Sales of Existing Homes Rose 1.4%

2011-12-07T17:59:00.001-05:00

Homebuyers scooped up more previously owned homes in October, slowly putting a dent in the huge inventory on the market, an industry report showed. Sales of existing homes rose 1.4% last month to an annual rate of 4.97 million homes, up from a downwardly revised 4.90 million homes in September, the National Association of Realtors reported. That was higher than expected. Economists polled by Briefing.com had expected an annual rate of 4.85 million homes in October. Compared to a year ago, the rate of existing home sales has jumped 13.5%, from 4.38 million units. Continued gains in home sales have lightened up the inventory of homes on the market, the report showed. Total housing inventory at the end of October slipped 2.2% to 3.33 million existing homes for sales, representing an 8-month supply at the current sales pace. That’s down from an 8.3-month supply in September, and continues an ongoing downward trend since hitting a record high of 4.58 million in July 2008.

Source: CNN/Money

Real Estate Trends Nov. 28 2011

2011-11-28T13:44:00.000-05:00

Minorities and immigrants will drive growth in housing demand in coming years, a new study reveals. Within the next 15 years, researchers say they expect this population segment to drive demand for condominiums, smaller starter homes, and first trade-up homes. Also, this growing demographic is expected to represent a rapidly growing segment of the middle and middle-upper markets for housing, finds a new report, “The State of Hispanic Homeownership,” by the National Association of Hispanic Real Estate Professionals. “The Latin boom has been forecasted for years but we are now seeing the front edge of it and it has the potential to help the nation’s housing system get back on track if we can create a safe credit environment for new buyers to get into the market,” says Carmen Mercado, NAHREP president. Hispanics make up the largest minority group in the country and represent a significant portion of the 26 to 46 age group most involved in home sales. Plus, Hispanics tend to value home ownership more than other demographics. For example, according to a recent study, 57 percent of Hispanics say they consider owning a home a symbol of success compared to 33 percent of all Americans.

Source: RISMedia

Home Buyer Point of View

2011-11-22T14:34:00.000-05:00

I’m sure you’ve heard by now, that it’s a great time to buy a house. But is it the right time for you or me to buy? I’ve been at my current home for 12 years and figured that it wouldn’t hurt to take a look. With many homes down more than 25% off their peak, I’ve been scanning www.realtor.com more seriously now rather than drooling over the used to be multi-million dollar homes for decorating ideas (okay yes, still just ideas).

Lots has changed since I moved 12 years ago, but I started off with my top 5 list once again only this time revised since of course I’m a little older and wiser now. I had a much longer list the first time around and surprisingly it came down to 2 items not in my top 5: an attached garage and a sun filled housed (if you’ve ever lived in the Midwest during winter time – then both items make perfect sense). Luckily, my mother was there to look at all the other important aspects of home ownership.

But before I actually get myself up and out to look at a house this time, probably like you, I’m leveraging modern technology by virtually touring my way across listing after listing hoping something survives the top 5 list. So what makes or break the deal on a house for me? Location, operational costs, financing, neighbors, location, and oh yeah, location.

The biggest consideration for most of us is of course the mortgage. Today, Islamic financing is well established and those of us interested in structuring our financing Islamically do have options. I, more than likely, will choose Ijaraloans, considering my brother works there and will walk me through the process. (Which of course he does for all his clients, but I’d like to think I’m special.)

After I know what I can afford, the next question is will I be able to stay in the home? Realtor.com does provide useful information primarily about the individual property to determine your operational costs. Yup, that’s estimating what your monthly budget will be. For example, I can usually find a tax assessment or recent taxes paid along with all those great photos, and other useful details like asking price. With the recent taxes paid, size of home, I can estimate what my monthly operating costs might be like gas/electric bills, yard maintenance, home owner association dues, and other incidentals.

So after the approval process and knowing what you can afford, what’s next? Location, location, and location. Yes, it’s true what the realtors all say; location is everything. 12 years ago school districts were number 1 on just about everyone’s list I knew. Today, not so much due to the recent popularity of home schooling, charter and other private schools. For me, more than the school district, I’m looking at crime rates, proximity to places of worship & relatives (I won’t say if that’s to be closer or farther to my endearing family!), cost of living and who my neighbors will be.

So, it’s on to neighborhood statistics. My new favorite website is www.propertymaps.com along with the local county web sites. What I love about this site is that it gives me one stop for all kinds of information about the local area including crime rates, schools and recent sales. In conjunction with www.realtor.com’s property tax and county web sites tax assessment I have a good idea about the basics both on the house and vicinity.

So, on to my potential neighbors. There are natural life cycles to every neighborhood and since neighbors come and go, you can only gauge whose currently there. But whether or not it’s a blue or white collar neighborhood, if kids are freely play outside, or if there a beer cans decorating the yard next door, you probably can get a sense of what you’ll be in store for. While I was looking for an attached garage and a house full of light, luckily for me, my mother was busy checking out the neighborhood. Whatever your criteria is for location, how do you judge this virtually?

Realtors always tell you go by the house you want at different times of the day. That’s a bit harder to do virtually, but after settling on a neighborhood, I then take my MLS to the test of google maps. I click the little man onto the address and take a walk through the neighborhood. Then, with the mental image of my surroundings, try to figure out if I’ll be waking up to sound of birds and the warmth of morning light or will it be barking dogs or punk kids and their garage bands?? (Not that’s there’s anything wrong with punk kids- I used to be one) Well, not quite perfect since most of google maps are a bit out dated and they haven’t captured sound, but it’s at least a quick look.

Needless to say, I haven’t found my house yet. I sometimes question if technology helps or hurts us. I wonder if my dream home got cyber axed somewhere along the line. After all, a virtual tour misses the feeling you get when you walk into a home and know it’s home or realize that you don’t really care about taxes when you can live within walking distance to Mediterranean Bakery. There sometimes is no replacement for getting away from the computer and just getting out there.

By Romy Sharieff

Housing Crisis

2011-11-16T13:46:00.001-05:00

After 52 consecutive months of declining inventory, there were 163,000 new houses for sale on the US market in September, unchanged from the month before. With new homes sales beginning to perk up from multi-decade lows, demand could quickly outstrip supply. At least in parts of the country, the next housing crisis could be a shortage of new homes. The stock of new homes for sale typically ebbs and flows with the broader business cycle. When the economy begins to slow, home sales drop off and the supply of houses begins to increase. The supply of new homes in months indicates how long it would take for all the new houses on the market to clear at the current pace of sales. Historically, that ratio has averaged about 6 months. At the height of the boom in the mid-2000s, demand vastly outstripped supply even as home builders added to the supply at a furious pace. When demand collapsed a few years later, homebuilders were slow to react, resulting in a huge supply overhang. As the crisis worsened, the inventory ratio eventually reached an all-time high of 12.4 months in 2009. Today, the housing market is showing tentative signs of healing with the supply of new homes again approaching 6 months. Existing home sales have stabilized, house prices have bottomed, the homeownership rate has ticked up, and the threat of a massive shadow inventory is fading. Economic growth is firming in parts of the country that missed the worst of the bubble and new workers will need places to live. Rental markets are getting tighter and new housing construction could soon follow, perhaps reflected in the recent improvement in home builder sentiment. With the supply of new homes at such low levels, even a modest pick-up in the pace of sales could have a dramatic impact. When the housing recovery gains real traction, the current supply of new homes could run out within a few months, leading to higher house prices, a boom in residential construction and an unexpectedly powerful lift to the US economy.

Source: Business Insider

Are short sales getting easier?

2011-11-08T14:45:00.002-05:00

Are short sales getting easier? Some home owners are reporting that banks are now not only more willing to consider a short sale, but are even offering incentives to complete a short sale. For example, a home owner in Chicago says his lender approved his short sale and then gave him a $20,000 check after the deal was finalized for selling the home as a short sale instead of letting it sink into foreclosure. Lenders accepting a lower loan payoff from an underwater seller traditionally isn’t thought of an easy transaction to complete. Lenders weren’t so willing a few years ago. But as the number of Americans underwater on their home loans grow, more lenders are reconsidering as they try to avoid extra costs a foreclosure can cause. For 2011, short sales accounted for about 8 percent of total home sales, and rose 7 percent over 2010 totals, according to CoreLogic data. Short sales are up by 59 percent year-over-year in Illinois, 32 percent in Michigan, and 19 percent in Arizona alone, according to CoreLogic. “We’re starting to see that servicers and lenders are viewing short sales as a better alternative than they had in the past,” says Daren Blomquist, spokesman for RealtyTrac. “Some of that relates to the fact that it’s getting harder to foreclose. There are additional requirements in terms of paperwork and requirements that states and judges are imposing.” Short sales can still be complex and lengthy — they can take up to nine months to close and even after that, there’s no guarantee it’ll end successfully. “In general, it is a totally different type of transaction,” says Mike Cuevas, a real estate professional at Exit Realty in Chicago. “You’re not only selling a house, you’re negotiating debt.”
Source: MarketWatch

Listing a Home

2011-11-07T17:05:00.000-05:00

List a home on Friday and you’ll have a greater chance of success when selling it, according to Redfin, which analyzed 1.2 million listings in 16 markets over 21 months to determine the best day of the week for selling a home. In every market analyzed, Redfin found that homes listed on Friday were 12 percent more likely to sell within 90 days. What’s more, the company found that homes listed on a Thursday or Friday sold for slightly closer to the list price: 94.4 percent compared with 93.9 percent for homes listed on a Sunday or Monday. Homes listed on Friday were viewed 19 percent more by buyers than homes listed on any other day of the week, according to Redfin’s study. "Our theory is that since home buyers tend to tour homes on the weekends (Saturday and Sunday have 2.5 times more tours per day than weekdays), homes listed on Fridays are the freshest in buyers’ minds when they’re making their weekend plans,” the brokerage said in a blog post about the findings. “It also seems likely that many home buyers sort their weekend ‘must see’ lists by date listed, going to see the freshest homes first so they have the best chance of getting in on a potential good deal before other buyers. These factors put homes listed on Friday in front of more touring buyers on the weekend. More tours leads to more offers, and more offers leads to a better price and a better chance of selling.”
Source: Inman News

Growing Latino Housing Influence

2011-10-27T17:58:00.000-04:00

The growing Latino population will significantly impact real estate in the United States, said Rogelio Sáenz, dean of the College of Public Policy at the University of Texas. While presenting at the 6th Annual Mortgage Lending Industry Strategic Markets and Diversity Conference, Sáenz based his assertion on demographic trends, citing numbers which show one out of every two people added to the U.S. population each year is Latino. Sáenz said the Latino population could easily triple from 49.7 million in 2010 to 132.8 million by 2050, significantly shifting the makeup of the nation's homebuyers. Sáenz cited data from the National Association of Hispanic Real Estate Professionals, which suggests Hispanics are now the largest minority group and a significant mportion of the age group that is most often involved in home sales — mainly those who are 26 to 46 years old. He added the growing Hispanic population is more likely to have families with children, spurring the need for homeownership. Mark Calabria, director of financial regulation studies at the Cato Institute, has studied home lending issues in the United States and agrees that the Latino share of the housing market is growing, Calabria said in an interview with HousingWire...

Source: HousingWire

Real Estate News- October 25, 2011

2011-10-24T16:32:00.000-04:00

Of more than 3,000 homeowners and renters polled by Hanley Wood, 30 percent said they were living with relatives; that is the highest rate of doubling up since the Great Depression, attributable to the economic and housing market slumps. Although poll-takers said stricter lender standards, larger down payment requirements and economic and employment concerns have hindered home purchases, 87 percent of homeowners and 73 percent of renters believe homeownership is critical to the economy. As many as 2 million potential owners are waiting for the right time to buy, with 29 percent of renters and 19 percent of homeowners planning to purchase a new home during the next couple of years.

Source: Housing Predictor

Buyers have a long list of what they want when home shopping, but one of their biggest desires: A good deal. "And no matter where a seller prices their property, they’re looking to negotiate," says Patricia Szot, president of the MetroTex Association of Realtors®. But that’s not all they want. Bankrate.com recently asked real estate professionals to chime in on the top desires of their buyers when home shopping. Here are four things that made the list of top home buyer preferences:

Homes that are in good condition. "There’s not a lot of flexibility in that," says Ron Phipps, president of the National Association of REALTORS®. Many buyers now take the attitude: "I’d rather spend the money getting into the house" and not have to spend more money later, Phipps says. One of the major reasons is that "buyers have limited amounts of cash," he adds. "Even if they want to do a fixer-upper, they don’t have the money to do it."
A bargain with incentives. Buyers are looking for a good deal, even when considering bank-owned properties, says Joan Pratt, real estate broker with RE/MAX Professionals in Castle Pines, Colo. "They want the short sales and the foreclosures and they want them to look like they’re owner-occupied," she says. "They don’t want to paint. They don’t want to put carpet in. They don’t want to clean." And they aren’t only asking for a low price but they also want incentives to buy too. As such, sellers are offering everything from gift cards for new furniture to paint to financial assistance at closing.
Outdoor living areas. Homes with screen porches, outdoor kitchens, two-way fireplaces are becoming increasingly competitive in the marketplace as more buyers say they want more outdoor living space.
Open kitchens. "The wall between the kitchen and the family room is evaporating," Phipps says. "The kitchen is becoming part of the gathering space.”

Source: Bankrate.com

With the tightening of credit standards, more home buyers are finding themselves rejected when they go to apply for a loan. But after just one rejection, lending experts say buyers shouldn’t give up — they may still be able to qualify for a home loan if they keep trying. But buyers shouldn’t give it another try until they take a close evaluation of why the original application was turned down in the first place, and find ways to address those issues in their second or even third attempt, Marisol Torruella, a loan originator told The New York Times. Applicants can, by law, find out why they were rejected for a loan application. The Equal Credit Opportunities Act requires lenders within 30 days to give applicants, in writing, the specific reasons why they weren’t given a loan. For some rejected borrowers, they may need to save up for a larger down payment or take steps to improve their credit score. Some applicants may find shopping around for other lenders can help, as well as discussing additional alternatives with their lender. Applicants might also find a better option is a loan from the Federal Housing Administration, which have less stringent requirements, but some surveys show that most borrowers aren’t aware of FHA loans.

Source: The New York Times

Have you been rejected for a loan with another lender or afraid that you would be? Please contact us for a free assessment to find out what can be done to put you in position to make your next attempt successful.

Real Estate News- October 21, 2011

2011-10-21T14:16:00.000-04:00

New CoreLogic study has determined that there are substantial reserves of positive home equity nationwide, citing recent Federal Reserve data showing that Americans held about $6.2 trillion in equity in their homes at the end of the 2011 second quarter. Federal and industry estimates also reveal that nearly one of every three homes is debt-free. According to CoreLogic, nearly half of homeowners with home loans have at least 25 percent equity and almost a quarter have more than 50 percent equity.

Source: Worcester Telegram & Gazette
The Appraisal Institute recently released a form to help appraisers factor in energy-efficient home features when valuing homes. The forms can also be used by real estate agents in describing “green” properties on the MLS, the Appraisal Institute notes. Everything from a home owners’ energy efficient appliances to solar panels may now get more attention from appraisals with the added form. The new form allows appraisers to identify and describe a home’s green features. It will serve as an optional addendum to Fannie Mae Form 1004, which is the appraisal industry’s most commonly used form for home loan purposes, used by Fannie Mae, Freddie Mac, and the Federal Housing Administration. “We hope lenders, home builders, real estate agents, and home owners will take advantage of this new tool,” Joseph C. Magdziarz, president of the Appraisal Institute, said in a statement. “Lenders who want to see energy features analyzed should request the green addendum to be included with Form 1004. We also encourage lenders to provide the green addendum to home owners so they can fill it out and provide it to their appraiser. If a new home is being appraised, home builders can use the addendum to provide data to appraisers. Real estate agents also can use the data to help populate the MLS.”

Source: RIS Media

New job opportunities have more people on the move, according to a survey by Apartments.com conducted to gauge its Web site visitors’ 2011 moving plans. While new job opportunities have more residents relocating, more current home owners are also entering the rental market, which is a growing trend, the survey finds. Here are some of the survey’s findings:

Reasons for moving. The most popular reason for moving was because of employment opportunities: 28.8 percent survey respondents said they were relocating for a job, compared to 10.4 percent who moved for job opportunities the previous year.

Growing trend. More current home owners and first-time renters are entering the rental market, according to the survey. More than 20 percent of the survey’s respondents who are looking for an apartment this year said they are current home owners—32 percent of whom are also first-time renters.

Planning ahead. Many of the survey’s respondents said they are apartment shopping now for a move that will not take place until much later in the year. Indeed, nearly 20 percent of respondents are starting their apartment search three to four months in advance and nearly a quarter are looking five months to more than a year out.

"It’s a good idea to lock into a lease right now," says Chris Brown, vice president of product management for Apartments.com. "Many management companies have announced rent increases. As vacancy rates continue to drop and the rental market improves, we expect to see the upward trend grow. Deals can still be had, but they’re getting harder to find.”

Source: PRNewswire.com

Tax Deductions For Homeowners

2011-10-17T14:31:00.000-04:00

You have heard it before. Owning a home is a great tax deduction. It is one thing to make a general statement. It is another to understand the specifics of how owning a home may lower your tax liability. Below is a list of important points that every homeowner should know. Note that this is not a complete list of allowable deductions.

Itemizing deductions. In order to deduct your mortgage payment, you must itemize deductions rather than take the standard deduction. As a general example, if your allowable standard deduction is $5,000 and you only have $3,000 in itemized deductions, you will be better off taking the standard deduction.However, if the home gives you an “extra” $10,000 in itemized deductions, you are better off itemizing. Note that the “excess” $2,000 ($5,000 minus $3,000) will not garner any benefit because you are now itemizing.

The housing payment. The housing payment is generally comprised of four segments: Principal, interest, taxes and insurance (PITI) . Generally, you can deduct two of these—mortgage interest and taxes. The good news is in most cases these two items comprise the greatest majority of the total payment. For example here are some fictitious numbers given to illustrate this point:

100 Principal
1,000 Interest
400 Taxes
50 Insurance
$1,550 Total Payment (PITI)

Of this example, $1,400 out of $1,550 is deductible, or approximately 90% of the payment.

Again, using fictitious numbers, if the above homeowner was in a 25% tax bracket, the home payment would actually be reduced by approximately $400 per month after taxes. There are a few exceptions or requirement with regard to this rule—

The deduction is only allowable for principal residences and second homes. Homes which are rented out (investor properties) have additional tax benefits.
You cannot deduct interest on any loan amount above $1 million.
You can only deduct interest on a mortgage which is taken out to purchase, build or improve a property.
You may be able to deduct a mortgage insurance payment under certain conditions.

Points. A point is a cost charged by a mortgage company for originating a mortgage and/or buying the rate down on that mortgage. Generally points are deductable in the year that they are paid when they are used to purchase a primary residence. If the purpose of the mortgage loan is to refinance an existing loan, then the points may still be deductable, but must be spread out over the life of the loan, unless the refinance was to improve the present home. There are additional restrictions regarding the deducting of points which are not delineated herein.

Investor properties. Those who own properties for the purpose of generating income can deduct the cost of expenses of carrying the property against the income of that property. Allowable expenses would include interest, insurance, taxes, maintenance, depreciation and more. Again using a fictitious example…

$1,000 Rental Income (monthly
   -800 Interest, taxes and insurance
     -50 Maintenance
   -100 Depreciation
     $50 monthly “net” income or $600 for the year.

Sale of the home. Another major tax benefit is achieved when someone sells their home. The profits of the sale of a principal residence are excluded from income up to a maximum of $500,000 for joint filers, including married couples, and $250,000 for individuals. You must have owned the home at least two years and used it as your primary residence at least two out of the past five years.

The tax benefits of owning a home are “great” as advertised. The source of this article is the Book of Home Finance. You are advised to get with your tax advisor for greater clarification with regards to these general rules.

©2011, All rights reserved
The Hershman Group, www.originationpro.com

The Rental Market Heats Up

2011-10-14T16:04:00.000-04:00

T he 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 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 home owners who’ve faced a foreclosure and are now renters. In response, more homes are turning into rentals: Nearly 35.0% of occupied homes were rented in 2010, which is a 33.8% increase from 2000, according to a recent study.

In more than 500 cities, demand for rentals has increased, with vacancies for rental housing reaching its lowest level since 2003, according to Census data.Plus, rents are on the rise too: Nationwide, rents increased 11.6% in 2010 to $1,320 a month, on average, according to Hotpads.com, a real estate research firm. Investors are buying rental properties with the intention to hold onto it for a longer time too: On average, investors say they plan to hold onto the property for 10 years before selling, according to a survey by the Na tional Association of Realtors®. "Whereas leverage is dangerous when buying stocks, rental properties can be a good long-term strategy," said investor Marshall Sonenshine...

Source: Money

Real Estate News

2011-05-19T14:28:00.002-04:00

It is cheaper to buy a home than to rent one in 39 of the nation’s 50 largest cities, according to a quarterly report by real estate search and marketing site Trulia. Trulia’s rent vs. buy index compared the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of April 1, 2011, in the 50 most populous cities in the U.S. While 72 percent of the cities favored buying in the previous quarter’s report, 78 percent favored buying in this latest report. "With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying," said Ken Shuman, Trulia’s spokesperson, in a statement. "As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home — much more so than in previous years." Source: Inman News

Real Estate News

2011-05-16T16:16:00.000-04:00

Housing’s troubles may have a silver lining. If you’re a homeowner, the steep fall in prices is calamitous. But if you’re a future buyer, it’s a godsend. What we’re seeing is a massive wealth transfer from today’s older homeowners to tomorrow’s younger homeowners. From year-end 2006 to 2010, housing values fell $6.3 trillion, reports the Federal Reserve. Assuming there’s no sharp rebound in prices — a good bet — that’s $6.3 trillion the young won’t pay. Up to a point, the lower home prices merely deflate the artificial “bubble.” But there’s evidence that the declines transcend that. The National Association of Realtors routinely publishes a housing "affordability" index, which judges the ability of median families to buy the median-price home at prevailing rates. By this measure, existing homes are the most affordable since the index started in 1970. Young buyers “will be able to enter the housing market at bargain prices,” argues NAR economist Lawrence Yun. When home prices again rise, increases will parallel income gains, meaning that the relative burden of housing costs will remain roughly stable, Yun says. He expects only modest increases in rates. Crises pass and have unintended consequences. The young just might catch a much-needed break from this one. Source: The Washington Post

If you plan to live out your retirement years in your own home, adding universal design features will make aging in place safer and more comfortable. And if you should later sell the house, you’ll find that buyers appreciate how these upgrades anticipate their future needs. Unlike home improvements designed to make an immediate impression, universal design additions with the most sales appeal are those that go unnoticed until you point them out. "The beauty of universal design is when you’re able to incorporate something that looks great and doesn’t jump out at you," says Paul Sullivan, a remodeling contractor in Newton, Mass. In other words, says Armand Christopher, a Realtor who is designated a Seniors Real Estate Specialist: "You don’t put in hospital-grade grab bars in a bathroom when you are remodeling." Fortunately, you don’t have to settle for the institutional look. From ergonomically designed faucet handles to skid-free flooring, today’s universal design products are stylish and subtle. Financing options include home equity loans and reverse mortgages. The best time to add aging-in-place upgrades to your home is before you need them, says Pat Rowen, an interior designer and Certified Aging in Place Specialist in Hillsdale, Mich. Rowen had to tackle a rush job when a client in his 80s fell and broke his hip just before Christmas, and she scrambled to track down materials and workers to do the needed remodel. She says the experience underscored the importance of planning ahead. "If you have to do it under the gun at Christmastime, and you know that your husband is coming home in two weeks and you have a bathtub that he can’t get into — that’s not the time to do the remodeling," Rowen says. Source: BankRate.com

Islamic Finance Presentation

2011-05-09T17:32:00.000-04:00

IjaraCanada will be holding an Islamic Finance Presentation. The key speaker will be Br. Shoeb Sharieff, president of Ijaraloans.com and IjaraCanada.com. HE will be speaking on how Islamic Finance is applied in the purchasing of a home/business.
If you are interested in learning more, you are welcome to come on May 21, 2011, 11 AM at 2380 Tedlo St. Mississauga ON L5A 3V3

Real Estate News

2011-04-29T15:47:00.000-04:00

Fannie Mae is trying to lure more buyers to its foreclosure properties by offering to cover 3.5 percent in closing costs for home owners who close by June 30 on its HomePath properties. Fannie’s HomePath program provides low down payment financing on REO property sales and has no requirements for insurance or appraisals. During the fourth quarter of last year, Fannie offered closing cost assistance and was able to recoup 55 percent of unpaid principal balance on defaulted home loans through the sales. Source: Source Media Note: If you are interested in bidding on a Fannie Mae or other REO property, a pre-approval is the first step. Just give me a call and I can help you get started and guide you throughout the process.

Apartment bargains once dominated the housing market, but those bargains have slowly faded away. As vacancies decrease and rents rise, renters are finding fewer deals. Analysts expect vacancies to decrease even more and rents to continue to rise through 2013, as the economy continues to improve. Rental activity recorded its best start for the year since 1999, according to Reis Inc. Vacancy rates have fallen to mid-2008 levels and rents have increased for the past five quarters, now averaging $991 per month nationwide. Renters are finding the fewest deals along the coasts, such as New York, Washington, D.C., Boston, Los Angeles, San Francisco, Seattle, and San Jose, Calif. These cities are experiencing low vacancy rates. Also, a boost in these cities’ economies is sending rents higher. New York City alone has seen double rent increases compared to the national average and has the lowest vacancy rate in the nation. Source: MSNBC

The housing market is poised for an uptick in home sales during the traditional spring buying season, as employment improves and rates remain low, Freddie Mac said in its April 2011 economic outlook. Overall, Freddie Mac said home sales will increase 5% in 2011 compared to 2010 — a projected 4.9 million home sales. The agency estimates that number will rise 12.2% to 5.5 million homes sales in 2012. The Federal Reserve’s current monetary policy and Treasury note purchase program are keeping rates low, according to Frank Nothaft, chief economist at the agency. On a monthly comparative basis, homes sales are expected to be lower this month than April 2010, as sales last year were inflated by the first-time homebuyer tax credit, Nothaft said. Short-term rates are especially supportive of household borrowing, Nothaft said, adding that he expects adjustable-rate loans to account for 7% of all 2011 sales. This is up from 5% in 2010. Source: HousingWire

With affordability at an all-time high, the number of investors and international buyers taking advantage of bargains has reached a record number in all-cash purchases — and some experts predict that number will only grow higher. A record 33 percent of existing-home sales were made to cash buyers in February, the National Association of REALTORS® recently reported. The proportion of cash deals could hit 40 percent by the end of this year, predicts Thomas Popik, research director for Campbell Communications in Washington, which conducts monthly surveys of 3,000 real estate brokers. But it’s not just investors moving in: Many of these cash deals are also coming from a growing number of international buyers. About 55 percent of international buyers paid cash for their U.S. homes, according to an April 2010 report by NAR. Short sales and foreclosures accounted for 59 percent of last year’s cash sales, according to a report by Morgan Stanley. "You buy the house at a discount with cash. Then you flip it almost immediately to the first-time home buyer who’s using a loan, simply because they were not able to buy at the foreclosure sale," Chang says. Source: Detroit Free Press

All rights reserved.

Source: NewsLetterProOnline.com

Real Estate News

2011-04-26T18:59:00.000-04:00

More investors are taking on the risk of flipping homes, despite sluggish real estate markets across the country. Investors say there are still profits to be made in the house flipping business. Nearly 1 million homes were bought as investment properties in 2010, according to the National Association of REALTORS®, and a record number of buyers purchasing properties with cash currently are flooding the market. In Washington, D.C., Justin Konz of RestorationCapital says his clients are going through four of five properties a month and are making gross profit margins of 35 percent or higher. Flippers mostly are finding their homes through foreclosures auctions, REOs, and short sales. They seek homes at rock-bottom prices that will have low fix-up costs, no more than about 5 percent or 10 percent of the purchase price. In Florida, where investors are finding it more difficult to flip homes because of the drastic drop in prices and high inventories, flippers are targeting inner-city properties that are being sold at steep discounts. For example, some of houses are selling for $30,000 when they once sold for $200,000. Perry Henderson, a real estate agent and investor in Austin, Texas, says the biggest opportunities in flipping are the “ugly” houses that have lingered on the market or "old houses that somebody’s grandma lived in for 40 years and didn’t do anything to. Now, she’s passed away and her family wants to sell quickly." Real estate investor Brian Fuller, who with partners buys and sells more than 200 properties a year in the San Diego area, says he’s drawn to the “biggest eyesore on the block.” He says they then “turn it into the best looking house there. We’re helping pull up values in the neighborhood." Source: CNN/Money.com

A new report from Deutsche Bank notes that housing affordability is presently at an all-time high. (DB’s proclamation is based on figures compiled by the National Association of Realtors.) Bank analysts note that the acceleration in affordability is "unprecedented" and it should help stabilize both housing starts and residential construction. DB believes the chief reason why housing activity has stalled is lending standards. "This is the one area where senior loan officers are still tightening, unlike what they have done for consumer and commercial/industrial loans," the bank said. Its analysts believe when banks and lenders "become willing to make home loans, surging affordability should lift construction—perhaps by a significant amount." Rates are off their historic lows of the fall and early winter, but some lenders report that potential home buyers are becoming more active, believing that rates will continue to rise and want to lock-in now. Source: Source Media

Living downtown is becoming increasingly appealing to college-educated 20- and 30-somethings. In two-thirds of the country’s 51 largest cities, the college-educated population in the past decade has grown twice as fast within 3 miles of urban centers when compared to the rest of the metro area, the USA Today reports. That is a jump of 26 percent, on average, compared with 13 percent in other parts. Young adults with higher education, in particular, seem to be showing a preference for urban living. Young adults with a four-year degree are about 94 percent more likely to live near urban neighborhoods than less-educated young professionals. (In 2000, that number was about 61 percent.) Even floundering downtowns are attracting more young people. For example, Detroit, which has faced a 25 percent drop in its population since 2000, has added 59 percent (or 2,000) young and educated residents during that time, according to Impresa Inc., an economic consulting firm. Looking to keep the young vibe going strong, Detroit even has recently launched a campaign — ”15 by 15” — to bring 15,000 young, educated professionals to live in the downtown by 2015. To do that, they are offering cash incentives: A $25,000 forgivable loan to buy a home in downtown and stay there for at least five years or $3,500 on a two-year lease. Source: USA Today

In an encouraging sign for the housing market, new home construction increased in March, according to a government report. Housing starts, the number of new homes being built, rose 7.2% in March to an annual rate of 549,000 units, up from a revised 512,000 in February, the Commerce Department said. Economists had expected an annual rate 520,000 units, according to consensus estimates from Breifing.com. The report also said there were 594,000 building permits issued in March. That’s up 11% from 534,000 permits in February, and was also better than expected. Building permits were forecast to have increased to an annual rate of 540,000 units. In addition, new construction of multifamily homes continues to outpace construction of single-family units, which are considered the core of the residential housing market. Single-family housing starts increased 7.7% in March, while construction of buildings with five units or more was up 14.7% versus February. Source: CNN/Money

Annual Fund Raising Dinner - Saturday April 30th at 7 PM

2011-04-26T18:41:00.000-04:00

FHA Offers Alternatives For Average Americans

2011-04-20T19:06:00.000-04:00

We have undergone a credit crisis in America. This is a crisis that has taken away many home financing alternatives. However, Americans are not without home financing alternatives. It is time to take a good look at an old standard—FHA financing.

For years, FHA was the standard for first time buyers, immigrants and those with credit issues. During the real estate and subprime boom, FHA financing shrunk from over 25% of the loans in America to well under 5% of the market. But now the government has moved to make FHA more attractive. Congress passed a bill to raise the FHA loan limits in many parts of the country.

Even without these modifications, here are some of the advantages of FHA…

A Low Downpayment. Generally the downpayment on an FHA mortgage is very affordable as compared to conventional financing. The downpayment required is less than 5.0%. A total of 3.5% cash is required from the borrower’s owner funds to be invested in the total transaction, inclusive of closing costs.

A Liberal Gift Policy. FHA borrowers virtually do not have to come to the transaction with any liquid assets in savings. All money may be provided by gift from a relative. Relatively all conventional lending requires that a certain amount of the borrower’s funds belong to the borrower through savings amassed some time before the transaction takes place. FHA also requires no cash reserves left in the bank after settlement. Keep in mind that prudent underwriting standards mayvery well require savings and cash reserves after closing.

More Lenient Qualification Standards. FHA requires less income to qualify for a mortgage. The standards allow a housing payment which is 31% of a borrower's gross monthly income and total debt service which is 43% of a borrower's gross monthly income. By contrast, most conventional programs have ratios of 28% and 36%. FHA also allows a prospective borrower who does not qualify to add a related co-borrower to the application--and this co-borrower does not have to live in the home.

FHA also does not require a minimum credit score to qualify for a mortgage, though there is a very liberal standard for those who are making a minimum down payment. It should also be noted that many lenders that purchase or make FHA loans do have minimum credit score standards.

FHA ARM Program. The FHA one-year and 3/1 adjustable mortgage programs are very popular because annual adjustments are limited to one percent each year, as compared to most conventional adjustables which have caps of two percent each year. For example, this means that the 3/1 adjustable can only increase one percent at the start of the 4th year. Also, the lifetime cap on these FHA adjustables is five percent, while most conventional alternatives have a six percent limit.

FHA Loans Are Assumable. FHA remains as one of the few programs to allow assumption of adjustable and fixed rate mortgages at the same rate and term as the original loan. This is a major advantage when you are trying to sell your home in a high-rate environment. Note that the assumption must be accomplished by an owner-occupant that is credit-qualified.

FHA Has No Maximum Income Limits.Though FHA loans are limited as to a maximum loan amount, there is no maximum income limitation. Many conventional first time buyer programs that allow a minimum downpayment, also limit the maximum income level of the borrower.

FHA also has programs to help homeowners improve their properties (rehabilitation), refinance their present mortgage and even reverse mortgages for seniors. Put it all together and you have a program that packs a lot of punch with first-time homebuyers or other low-tomoderate income Americans. If you are in the market to purchase a home or refinance your present home, you should look seriously at an FHA mortgage as an alternative. Contact us if you would like more information on whether FHA might be the right option for you..

FHA Advantages

¨ Low Down Payment

¨ No Cash Reserves

¨ Co-Borrowers Don’t Have

To Occupy The Property

¨ Fixed Rate With Assumable

Terms

¨ Adjustables With Low Caps

¨ Gifts Allowed

¨ Rehab program

¨ Reverse Mortgage Program

Source: The Hershman Group, www.originationpro.com

Direct Financing Now Available in All Provinces!

2011-04-19T18:38:00.003-04:00

Real Estate Trends

2011-04-19T15:50:00.001-04:00

World Crisis And Employment

We had such profound news in the past several weeks that many economic reports took a back seat.In a recovery, we typically analyze each piece of economic data with a microscope. Not this past month. This lack of focus is explained by the severity of the world-wide events that have occurred. First, we have had an entire region of the world which has seemed to rise up at once and challenge their leaders. The government of two countries have fallen and another is in the midst of a civil war. To make matters even more complex, the region is a significant supplier of oil. Then the world was shocked by the tragic earthquake and tsunami in Japan, the world's third largest economy. If the devastation, which left thousands dead and hundreds of thousands homeless was not enough for Japan to endure, the longterm risks of a nuclear power crisis hovered over the region in the weeks after the tragedy.

These events serve as a reminder as to why predictions are rarely ever reliable. They are also a reminder that we can't just focus upon what is happening within our own economy in order to monitor the recovery. We truly participate in a worldwide economy. This does not mean that our economic reports can take a backseat forever. Right now we are seeing much evidence that the recovery is continuing, though the real estate sector is still a drag upon growth. At the risk of sounding like a broken record, there is only one factor which will help us out of the real estate slump more quickly -- stronger employment growth. As we go to press, we have the release of a very important employment report. Last month we had a positive report. One positive report does not presage a stronger recovery, but two strong reports can start a trend. Stronger job growth will translate into a quicker recovery for real estate. It will also put our economy in a better position to withstand some of these world-wide shocks...

Tax Time Here For Homeowners
M any of the nation’s 75 million home owners may be appreciating the value of home ownership just a bit more as the tax deadline approaches. “Owning a home offers myriad benefits throughout the year, but some of the financial advantages of home ownership are most apparent at tax time,” said National Association of Realtors® President Ron Phipps.
A number of tax deductions and credits are still available for home owners; these include deductions with specific limits for home loan interest and capital gains on home sales, and credits for certain energy-efficient improvements. Even with these benefits, home owners pay 80-90% of all U.S. federal income taxes. “It’s been suggested that many of today’s tax incentives for home ownership primarily benefit wealthy individuals, but that’s simply not true,” said Phipps. “As today’s public debate continues about what home ownership means for families, communities, and the nation’s economy, there’s no question that for many, owning a home is still the best way to begin building wealth.” Over 90% of home owners who claim the interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a home loancan mean significant savings at tax time.
Source: NAR.org

Selected Interest Rates

March 24, 2011

30 Year Mortgages——–4.81%

2010 High (April 8)——–5.21%

2010 Low (Nov 11)——–4.17%

15 Year Mortgages——–4.04%

5/1 Hybrid ARMs———–3.62%

1 Year Adjustables——3.21%

10 Year Treasuries——3.39%

Sources—Fed Reserve, Freddie Mac

Note: Average rates do not include fees

and points. Information is provided for

indicating trends only and should not be

used for comparison purposes.

Beware: Rents Are Headed Higher

A lready, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years. "The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements." By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode. Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years -- to a national average that will top $800 per month. In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years. This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Lesley Deutch of John Burns Real Estate Consulting. Many others doubled up together. As a result, landlords had to reduce prices and offer big incentives to snag renters. Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, millions losing their homes to foreclosure are looking for new places to live. Apartment developers may not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends...

Source: CNN/Money.com

Did you know… Nearly 70% of buyers and sellers say they believe the housing market and property values will recover in the next year or two, according to a new survey by Prudential Real Estate. Those surveyed said they also are ready to buy: Six in 10 respondents say they aremore interested in buying real estate...

Source: RISMedia.com

THREADS OF HOPE MOTHER'S DAY BRUNCH

2011-04-07T17:04:00.000-04:00

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The Biggest Mistakes Homebuyers Make

2011-04-05T13:53:00.003-04:00

Buying a home is the biggest purchase most people will ever make, yet many go into it blind. Here are the most common, and costly, mistakes homebuyers make

Not knowing your credit score.
If you're even toying with the idea of buying a home, you must find out exactly what your FICO score is. If you find it is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest ratequotes. Once you've pored over yourcredit history and corrected any errors, your next step is to pay down revolving debt balances to no more than 30%usage. That will help raise your score significantly.The lower your score, the higher yourcosts of borrowing. Fannie Mae andFreddie Mac, for example, chargehigher up-front fees to borrowers withcredit scores below 740. For a buyer with a credit score between 680 and700, the fee comes to 1.5% of the mortgage principal. On a $200,000 mortgage, that adds up to $3,000. Someone with a 740 score pays
nothing. Lower-score borrowers also get saddled with higher interest rates,about a 0.4 percentage point more forthe below 700 borrower. That costs anextra $62 a month -- $744 a year -- on a$200,000, 30-year, fixed rate loan.

Buying a car before a house.
Anytime consumers open new credit accounts --credit card, auto loan, etc. -- their FICO score could drop, according to Craig Watts, a spokesman for Fair Isaac, thecreator of FICO scores. "Hence the admonition to not open other newaccounts while your mortgageapplication is in process," he said. A big purchase would use up a considerable proportion of a borrower's total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing. "The lender will likely slam on the brakes if the applicant's credit scores have suddenly dropped below the minimum required for the requested loan rate," Watts said.

Skimping on the home inspection.
Buying a pig in a poke can cost buyers big bucks, just when they can leastafford it. So It's vital to find all the costly flaws before you buy. Many homes on the market today are distressed properties -- foreclosures and short sales-- and that only increases the importance of good inspections, according to David Tamny, president of the American Society of Home Inspectors. "The owners usually didn't have the money to keep up these homes," he said. "There's a lot of deferred maintenance." A home inspection can find problems with the foundation, electrical, plumbing,roof, attic insulation, and heating and air conditioning. In some states, separate licensed inspectors offer mold or termiteinspections. Often homebuyers, who may be strapped for cash, stint on inspections and look for the cheapestway to go. That can lead to disaster. The cost of repairs far exceeds the cost of inspection," said Tamny.

No contingencies.
When signing a sales contract, buyers usually have to put up 1% to 3% in "earnest money,"which they don't get back if they pull out of the deal except under certain conditions spelled out in the contract. Sellers try to limit the grounds for canceling, and inexperienced buyers may sign contracts that don't include common exceptions, such as uncovering major problems during the home inspection, failing to obtain financing and failure of the house to appraise. Failure to obtain financing is common these daysbecause lenders have become very picky; underwriting is very strict. Even if your mortgage company is still willing to finance your
purchase, the house itself may be worth less than you've contracted to pay for it,and the lender will pull its approval. With residential real estate markets still slow, sellers usually accept contingency clauses, but if they resist, it may be better to rethink the deal. Losing a deposit of$2,000 to $6,000 on a $200,000 home hurts.

Not budgeting for insurance.
Don't underestimate insurance costs and fail to budget for them. Many homebuyers don't understand just what is -- and what is not-- covered. Standard policies pay for theft and wind, fire, lightning, hail and
explosion damage. Not covered is flooding, earthquake damage or problemscaused by neglect of routine
maintenance, according to Jeanne Salvatore, spokes woman for the Insurance Information Institute, an industry-sponsored educational group. "The most important thing before youbuy a home is to find out what it will cost to insure it," she said. "Insurance needs to be calculated into the cost of owning ahome. Unlike a mortgage you can pay off, you'll be responsible for insurance costsforever."For flood insurance, most buyers use the National Flood Insurance Program. Earthquake coverage may be available through a state authority or some privatecompanies. Depending on location, flood insurance can run into a lot of money.The cost of $250,000 worth of government flood coverage on thebuilding and $100,000 of its contents cango as high as $5,714 in high-risk, coastal areas.
Source: CNN/Money.com
The Hershman Group, http://www.originationpro.com/

HAPPY NEW YEAR 2010

2010-01-06T18:00:00.000-05:00

Keeping Your Home Warm During Winter

2009-12-14T17:17:00.005-05:00

Winter is here, and you might be expecting the electrical and gas bills to increase. Here are a few suggestions that might help you tighten those bills this season.

-Just like us who need to bundle up in warm clothing during the harsh winter chill, you home also needs to be buttoned down. You can save a bundle by plugging up the places around the house where your heated air is leaking out into the cold.

-Blankets are not just for sleeping, install an insulator blanket on your water heater. This can greatly reduce the effect cold air has on a heater located in a cool basement or garage. Insulation around exposed pipes leading to the heater also will conserve heat.

-In this age of digital everything, install a digital thermostat to automatically reduce the heat while you are at work or sleeping. As much as 10 percent can be saved on heating bills by turning the thermostat back 10 percent to 15 percent for eight hours.

-Out with the old and in with the new. Replace a furnace or boiler that's older than 10 years with a more efficient model.

-Keep the furnace and water heater free of debris so air can flow efficiently, reducing the load on the systems. Who says you can only do spring cleaning in the spring?

-Use your clothes dryer sparingly. In addition to using additional energy, dryers suck out heat from a room, causing the heating system to work harder. Using the dryer sparingly will also help reduce the electricity used.

-If you heat with electricity, look into installing an underground heat pump. Since it's warmer underground, your pump doesn't have to work as hard to heat things up. Translation: The new pump could slash your heat costs in half. But you'll probably need to spend a cool $2,000 or so to dig a trench in your backyard. Still, this is one investment that is worth emptying your wallets for.

Good luck with the winter weather, if all fails and your home still feels chilly, you coulld always try to find a home some where down south.

Reference:
http://money.cnn.com/magazines/moneymag/moneymag_archive/1996/09/01/216117/index.htm
http://www.physorg.com/news113673981.html

7 Reasons To Own A Home

2009-11-04T15:12:00.004-05:00

1. Tax Breaks...

The US Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home. With an Ijaratm transaction, you may deduct the profit paid along with the property taxes.

2. Gains...

Between 1998 and 2002, national home prices increased at an average of 5.4% annually. While there's no guarantee of appreciation, a 2001 study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home.

3. Equity...

Money paid for rent is money that you'll never see again, but Ijaratm rent to own payments let you build equity ownership in your home without Riba.

4. Savings...

Building equity in your home is a ready-made savings plan. And when you sell, you an generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability...

Unlike rent, your Ijaratm payments don't go up over the years so your housing costs may actually decline as you own the home longer. However keep in mind that property taxes and insurance costs will rise.

6. Freedom...

The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.

7. Stability...

Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Hajj 2009 Conversion Discount

2009-11-04T13:10:00.004-05:00

Ijara is Now in Canada

2009-10-29T17:20:00.009-04:00

For our Muslim brothers and sisters residing in Canada, who are planning in purchasing a new home, there is another option for you for Islamic Financing. Ijaraloans is now in Canada and available in all provinces. Ijaraloans is the first American based Sharia Finance Company to serve Canada.

Compliant Home Financing from $100K- $500K

Purchase or Refinance

Conversion Possible

Down Payment as low as 5%

Call our toll free number to find out more about the options available in Canada.
TOLL FREE: 1-87-786-IJARA (1-877-864-5272)

99 Beautiful Names of Allah

2009-10-29T16:05:00.009-04:00

Housing Tax Credit Extension?

2009-10-29T14:56:00.001-04:00

The Obama administration, via a statement from the Treasury Department, is officially asking Congress to extend the tax credit for first-time homebuyers.

From the release:

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan called on Congress to approve three important measures to improve housing and the housing market for Americans: extension of the First Time Homebuyers Tax Credit for a limited period, extension of higher loan limits for home mortgages, and secure funding for the Housing Trust Fund. "We welcome efforts taken by Congress to extend the First Time Homebuyers Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan.

Source: http://firstread.msnbc.msn.com

Enroll Your Favorite Non-Profit in the Ijara Community Support Program

2009-10-29T13:02:00.002-04:00

Ijaraloans.com is pleased to announce it community support program. You can help your local Community Center / Masjid / School or any non-profit of your choice by enrolling them in our community support program. Here is how it works:

1. The non-profit registers with Ijaraloans.

2. Customers notify the Ijara representative that they were referred by the non-profit that is enrolled in the Customer Support Program at the time of application.

3. Ijaraloans will make a one time donation to the non-profit in the amount of $250 for each residential transaction and $450 for each commercial transaction that closes with the referred customer.

4. In addition to the one time donation, Ijaraloans will make monthly donations in the amount of $3.00 per transaction, as long as the referred party remains a customer of ijaraloans. For example, if the non-profit over several years refers 100 customers, then they would receive $300 each month in donations from Ijaraloans.com

5. Should the customer also utilize the services of Ijara Realty, LLC, then an additional donation of up to $1,000 would also be made to the non-profit.

For more information call 1-87-786-IJARA (1-877-864-5272)