By W. Alex Goldie

Anyone over the age of 40 is by now hyper-alert to the entire marketing stratosphere’s buzz intended to attract the Baby Boomer consumer. Most of those folks are starting to feel like their being treated like big dollar signs, without anyone listening for what they’re really interested in. The Real Estate industry’s efforts to corral this demographic are not exempt from this behavior, so I’ve identified three wholly obsolete or incorrect assumptions that builders and Realtors alike have fallen into. Let me know if any of this sounds familiar-
1. Boomers want new lifestyles to come along with their new addresses!
2. Boomers are getting older, but still think they’re in their 20’s!
3. Health issues affect older people; so Baby Boomers need Universal Design building principles to remain independent.

Yikes – Those are pretty bad. Let’s take a closer look at what these assumptions mean, and what a more accurate picture might look like.

Quite often we see advertisements for a new retirement community designed not for baby boomers, but for their parents – G.I. Generation or Silent Generation members. Marketing materials from these types of developments typically extol the ability of seniors to take up fresh pursuits, and begin to enjoy a new lifestyle in their planned communities. In addition to providing a “new way of life,” sales materials are often gluttonously weighted with helpful features that seniors will benefit from.

To bolster sales, age restrictions have been lowered on most of these communities – some as low as 50 or even 45+ years for the youngest residents. A question would obviously be why more baby boomers have not been sold on these communities? Is it too much of a stretch of the imagination to suggest that baby boomers do not need “new lives?” Perhaps they’re fairly happy with life now, and want to merely move their life to a new address, not a new reality. When a baby boomer takes a trip through a new construction model, they are far more likely to be reconciling the new residence with their existing lifestyle.

By now, we’re well accustomed to the stereotype that baby boomers are obsessed with youth. This very important aspect of many baby boomers’ personalities has been terribly misconstrued by kind folks responsible for marketing baby boomer oriented products and services, and particularly in real estate. They are advertising with a presumption that, for baby boomers being young means being 21! Overall, baby boomers have played by their own rules, and often see old age or youth to be a conscious choice, a mindset. However, the overall consensus of people I talk to is that few intend to go back into their twenty’s, they just want to retain their youthful spirit and keep their good looks! The problem with most of the marketing efforts is in many of the marketers. If a marketing team is made up of 20 and 30somes, especially if they’ve been inundated with the notion of baby boomers being vain or age defiant, they have a tendency to advertise to THEMSELVES. They are doing what is most natural, which is why we see so many baby-boomer-oriented advertisements with individuals acting peculiarly for their age bracket. Advertisers, and those designing homes and providing services, need to be able to walk a fine line between observing this natural desire for baby boomers to retain and regain youthful vigor, and patronizing it with the vague notion that fresh faced young adults are an IDEAL which all others envy.

As I have noted in past articles, the rate for disabilities of the 65 and older crowd has actually dropped from 26.2 percent in 1982 to 19.7 percent in 1999 (Census Bureau Statistic). The devotion to physical fitness by many in the baby boomer generation will decrease those percentages even further, and we all expect boomers to outlive their predecessors significantly. However, those who decide to plan ahead, taking a proactive course in their home search, are expected to be looking for homes that utilize “Universal Design” in their new home’s floor plan and amenities. “Universal Design” is a home designed to accommodate those with disabilities in a floor plan that is friendly even to those who are not disabled. It emerged after World War Two, with the hundreds of thousands of Veterans returning home effected by the ravages of war. Understandably, connotations of Universal Design are not readily welcomed by baby boomers, as opposed to home buyers of the 1950’s, and much to the chagrin of industry analysts and experts.

While universal design may be helpful to those with physical challenges, those without them, i.e. – “proactive” boomers- are not excited by the prospect of hand-rails in the bathroom, or extra-low countertop heights. The features they may enjoy, however, are those which provide added luxury in addition to ease of access. Things like wider doorways, an ergonomically designed kitchen, wider doorways, more open floor-plans, and a bathroom that is larger and more conveniently laid-out. This concept of universal design, developed over the past 60 years, needs to evolve to suit the healthiest generation in history. Boomers are not being forced into new homes; they just want a blueprint that can easily adapt to their needs as they age.

It is no doubt that the housing industry will need to adapt over the coming years as more and more Baby Boomers reach age 60 and beyond. How that change manifests itself is going to change many of the preconceived notions that the “experts” have been duped with. Hopefully, for the sake of those who are looking to make a move for the sake of their future, those preconceived notions will be shed in favor of reality. Baby boomers are not looking to start over with a new life, metamorphous into 20 or 30somethings, nor move into a home expressly designed for elderly needs. Here’s a novel idea – how about selling baby boomers based on what each individuals’ wants and needs? Maybe that’s over-thinking it.

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 by Joanne Leong
Owner financing often produces a winning situation for both the homeowner who is selling the property and for the buyer who is purchasing the property. Owner financing may be defined as the situation when a seller is willing to help finance a real estate transaction by creating a loan for the entire purchase if they own the home outright or by creating a loan for part of the purchase price when there is already an existing loan on the property.

There are several benefits for the seller and buyer when an owner financed transaction is used. For one, the transaction may proceed more quickly and easily than when conventional financing is used because there are fewer companies, fewer people, and fewer steps involved. For another, the seller is more apt to receive a higher sales price, and the seller will receive payments and interest over a long period of time. There are tax savings realized by selling under this instalment plan. Additionally, the buyer will realize savings by avoiding loan fees and lender charges, and the negotiated interest rate will generally be lower than the available interest rates from a commercial lender. Also, for the 20% of prospective homebuyers who cannot qualify for a commercial mortgage loan, owner financing is a wonderful way for them to be able to own a home.

There are a few potential disadvantages to consider regarding owner financing. For one, if the buyer defaults on the loan the seller will have to initiate foreclosure proceedings. This can be costly, time consuming, and require work that the seller might rather avoid. Of course, after the foreclosure, the property can be sold again, an advantage for some owners and a disadvantage for other owners. Additionally, the interest income generated by the loan will be subject to taxes, which could be a disadvantage to a seller who is in a higher tax bracket. Also, the seller does not receive cash for their equity immediately, but rather will receive their equity in instalment payments over time. This is a disadvantage if the seller has need for a large sum to be used in the near future.

Here are some tips for the seller and the buyer to consider when negotiating an owner financed transaction. The seller should research the buyer’s creditworthiness and ask numerous questions to become confident that the buyer can fulfil their obligation. The buyer should provide a written explanation of any problems that appear on their credit report. The buyer should research the local housing market and the condition of the home to become confident that the home is priced fairly and is without major problems. Also, the seller should verify that the new owner is making all insurance and property tax payments. A proof of payment provision should be included in the sales contract. Finally, the seller should require the buyer to stay ahead on payments, even submitting post dated cheques so that the seller has confidence that foreclosure will not become necessary in the future.

An owner financed home sale can be a winning situation for both seller and buyer. It is important, however, that the seller and the buyer do their due diligence in order to reduce possible risks.

About the Author

Joanne Leong is a real estate investor who informs other real estate investors about secret, moneymaking real estate deals, saving them time and money in trying to find them themselves.

Join the VIP JL Real Estate Club to find out about these deals as soon as they are finished being analysed by Joanne Leong.

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By Peter Dejoseph

Many people come to me now with the question, should I buy now or rent for a while? That’s a great question and there are many things to consider, regardless of where the real estate market is going.

What is your personal situation, where are you going to be in 2 years, 5 years, or more? Are you looking for a house to live in for the rest of your life or are you planning to move again in the next few years? Are you financially ready to put a 10-20% down payment when you buy a home or do you need 100% financing? So many things to consider so let’s look at them one at a time.

Let’s look at how long you plan on living in this house, this is very important factor right now. Over the last few years we have seen real estate prices increase at a record pace, this is not normal and now some areas are feeling the pain of having the market decline in price. The prices have come down some in many areas and there are some good opportunities to buy property out there, remember you never buy exactly at the bottom and sell at the top, getting close is what is important. If you are planning on staying in a home for a while a purchase would be a good idea from this perspective, prices will eventually go back up and they may come down a little more first.

Are you financially ready to buy a home? With all of the pressure in the lending markets, getting financing is going to be much more restrictive then it has been in the past few years. With the increase in foreclosures and number of banks that have gone out of business over the last 2 years, (visit www.ml-implode.com for up to date numbers), you are going to have to have higher credit scores, provable income, money in the bank, and a mortgage broker who has many lenders and financing programs available to help you. The 100% financing programs, MTA and Option ARM programs, Adjustable rate and interest only programs where you could “state” your income are vanishing from the market as quickly as they appeared, what is important now is good credit, money in the bank, and provable income.

Do you need to save up some money for a down payment? Is your credit score not so good and you need to do some things to raise your rating? Did you start a new job or business recently and the money just isn’t there yet? Then maybe renting for a while could be the plan for you for now. With the number of homes for sale in the market today, many of which are vacant because they were investment properties or people just moved anyway, there are a number of good rental opportunities. It is very likely you could find a home in the neighborhood you want to buy in, to rent for less than you would pay to purchase. Many people are struggling to pay there mortgage, taxes, insurance, and HOA fees and would welcome any help at this point to avoid a foreclosure. You could help them while they need help and at the same time you could live in this neighborhood and see if you like it for a year or 2 while at the same time saving money to buy your own home. Maybe you could work something out with the owner to buy there home at that time and get some of the rent credited towards your down payment.

The most important thing to do is to find a realtor and mortgage broker that will be willing to guide you as a consultant to what is best for you, not for them. Find a good financial planner to help with a budget and a plan to save the money needed to buy your home and in a price range that is affordable to you. Buying more home than you can afford is setting yourself up for disaster and a possible foreclosure.

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By Lance Mohr

When buying or selling a home, real estate agents are a crucial resource. They can give information about current availability of properties, their prices, financing, terms and conditions, information about housing market and much more. Many a times the real estate agent can prove to be a vital mediator for buying or selling properties for the best possible price. However, all this might turn out to be futile if one ends up choosing a wrong real estate agent.

By choosing a wrong real estate agent, one can end up, with wrong advice or miss out on a good deal. Moreover, one might have to pay huge commission and end up gaining nothing. Choosing a wrong real estate agent can cost thousand of dollars. Every year several complaints are registered for being deceived by real estate agent.

With numerous real estate agents, how does one go about choosing the right real estate agent? The first and the most important aspect for this is the emphasis on experience. Always look for a real estate agent who is experienced in this field. You as a customer wouldn’t ever want to risk your money by seeking advice of a novice. Always choose an agent who has an experience of more than two years in this field. It is always good to get recommendations from friends and family members and other acquaintances that have utilized the services of the agent and are satisfied with their work.

Always hire a licensed real estate professional. Before working with an agent it is necessary to check their license, as the license provides the customer with a protection, in case something goes wrong. Besides this, it is also necessary to check their credentials as this will help to determine the area of expertise and also indicate certain level of professional commitment. Finally, a thorough interview of the agent is imperative. Customers must clarify each and every doubt during the interview such as fees, commissions, the way the transactions would take place and many more. During the interview the customer can also judge the responsiveness and the commitment of the agent.

It is thus seen that choosing a wrong real estate agent in the absence of adequate information can be quite dangerous. There are several people who have fallen in to trouble by doing so. However, if one follows the right kind of tips in choosing an agent, they should avoid all troubles.

It is necessary to find a real estate agent who is honest, efficient, competent, and responsive. For finding the right real estate agent, log on to the website http://tampa2enjoy.com. Don’t forget to add http://tampa2enjoys.com/blog to your favorites section of your browser. I’ll attempt to always attempt to keep you informed as to the latest and greatest information concerning the Tampa real estate market and beyond.

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By Leslie Collins

Are you renting a house or apartment because you don’t think you can afford to own your own home?

Many people who might be in a situation to buy instead of rent simply don’t know their options and therefore never realize the benefit of home ownership.

The first step is finding a good online free mortgage calculator that analyzes your specific financial situation. The basic types of mortgage calculators needed are: straight amortization, points comparison, 15-30 comparison, debt-to-income and pre-qualify amount. Look for ease of use and simple reporting in easy to understand terms. Let’s look at a few.

Most straight amortization mortgage calculators require that you input 3 simple variables: amount you want to borrow, interest rate and length of loan, usually in years. For example, say you are interested in borrowing $150,000 at an interest rate of 6% over 30 years.

The basic online amortization mortgage calculator simply takes the data and returns the payment schedule, in this case:

Your total monthly payment will be: $899.00 for 30 years, which is based on a loan amount of $150,000 at an interest rate of 6%. Your total payments for this loan term are, $323,640. The total cost of the interest payments for this loan term are $173,640.

A good free online mortgage calculator will, as you see provide more than just the monthly payment; it lets you know the total interest paid over the life of the loan.

Perhaps the most useful mortgage calculator analyzes debt-to-income. Let’s look at this calculator.

The debt-to-income calculator is extremely useful because it helps you understand how much money lenders will let you borrow.

First you enter your gross annual Income: salary plus bonus, interest/dividends, child support etc…

Next enter all your debt obligations, which is comprised of proposed annual taxes, annual homeowners insurance . Also included in your debt are monthly credit card payments, car loans, any monthly medical or tuition bills etc.. don’t worry about exact tax and insurance cost at this point – just something close. You can always research a specific area for average property tax.

Lastly you enter the interest rate you think is reasonable as well as the loan length, for example 30 years.

Here’s a hypothetical situation

Your Income: Gross annual income (salary plus bonus, interest/dividends, child support ):$45,000

Your Expenses:

Annual taxes :$2500

Homeowners insurance: $500

All other debts (credit card payments, car loans, any monthly medical or tuition bills):$500

Loan Terms:
Interest rate: 6%
Term:30 years

Based on all these factors your maximum loan amount will be $125,093 or $750 monthly.

Varying the inputs really changes things – Say you have stellar credit and the lender drops your interest rate by .5 of a point because you have very little debt… no credit card payments or a car payment – only a measly $100 medical payment.

This increases the loan amount available to you to $202,540 or $1,150 a month!

Amazing what lower debt can do to your buying power!

The key is to experiment with the mortgage calculator - you may not qualify right this minute but it can show you what you need to do to achieve your goal of owning a home, reduce debt, increase your income etc.. – it’s probably a much closer a goal than you think. Knowledge is the key, you will get there!

Below is an excellent website with all the online mortgage calculators you need, easy to use and free – plus resources if you need to visit online lenders that will give you real quotes in minutes. Good luck!

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