Home > Blogs > Monir Mamoun's Blog
19,577 views

Monir Mamoun's Blog

By Monir Mamoun | Agent in Morristown, NJ
  • Rent vs Buy Trulia analysis!

    Posted Under: Home Buying in USA, Financing in USA, Rent vs Buy in USA  |  May 4, 2011 10:00 AM  |  637 views  |  No comments

    Fantastic article from Huffington Post analyzing a Trulia study on where it's better to Rent than Buy... cool!

    Where It's Better To Rent A Home Than Buy: Trulia

    Of the 50 most populated cities in the United States, New York remains the city where it's better to rent than buy. The Big Apple's competition? Fort Worth, Texas.

    That's according to the recently released Q2 2011 Rent vs. Buy Index by Trulia, an online real estate resource. The site compares rent of a two-bedroom apartment with median list price of a home to create price-to-rent ratio. Using that ratio, they divide cities into three groups: (1) cities where it is beneficial to buy a home; (2) cities where the choice should be made on a case-by-case basis; and (3) places where renting is much less expensive.

    According to Trulia's release, buying a home has become more affordable than renting an apartment in 80 percent of major cities. Besides New York and Fort Worth, only in Kansas city is renting the preferable option. Right behind those cities are Memphis, Los Angeles and San Francisco,.

    On the other end of the spectrum, the majority of cities where buying makes sense are located in the Western United States. Las Vegas comes out atop the buy-here rankings, followed, in order, by Phoenix, Arlington, Miami and Mesa (Ariz).

    Taken by itself, the price-to-rent ratio doesn't completely explain why a high-rent, foreclosure-addled city like Miami lands in the buy-here sector, while a city with low rents like Fort Worth is the second most friendly rentable city. As always, caveat rentor.

    Below is the graphic visualizing the rent-to-buy ratios of fifty metropolitan cities:

  • Rent vs Buy part two - Trulia analysis!

    Posted Under: Home Buying in USA, Financing in USA, Rent vs Buy in USA  |  May 4, 2011 10:00 AM  |  528 views  |  No comments

    Fantastic article from Huffington Post analyzing a Trulia study on where it's better to Rent than Buy... cool!

    Where It's Better To Rent A Home Than Buy: Trulia

    Of the 50 most populated cities in the United States, New York remains the city where it's better to rent than buy. The Big Apple's competition? Fort Worth, Texas.

    That's according to the recently released Q2 2011 Rent vs. Buy Index by Trulia, an online real estate resource. The site compares rent of a two-bedroom apartment with median list price of a home to create price-to-rent ratio. Using that ratio, they divide cities into three groups: (1) cities where it is beneficial to buy a home; (2) cities where the choice should be made on a case-by-case basis; and (3) places where renting is much less expensive.

    According to Trulia's release, buying a home has become more affordable than renting an apartment in 80 percent of major cities. Besides New York and Fort Worth, only in Kansas city is renting the preferable option. Right behind those cities are Memphis, Los Angeles and San Francisco,.

    On the other end of the spectrum, the majority of cities where buying makes sense are located in the Western United States. Las Vegas comes out atop the buy-here rankings, followed, in order, by Phoenix, Arlington, Miami and Mesa (Ariz).

    Taken by itself, the price-to-rent ratio doesn't completely explain why a high-rent, foreclosure-addled city like Miami lands in the buy-here sector, while a city with low rents like Fort Worth is the second most friendly rentable city. As always, caveat rentor.

    Below is the graphic visualizing the rent-to-buy ratios of fifty metropolitan cities:

  • Good Time to Buy vs Rent

    Posted Under: Home Buying in USA, Home Selling in USA, Financing in USA  |  May 4, 2011 9:52 AM  |  322 views  |  No comments


    Wow, incredible article by Meg Handley from USA Today about how in 80 percent of US markets it is now cheaper to buy a home than rent. Historically speaking it is an extremely rare condition and points to the fact that it's a great time to buy given overall current conditions.

    Homeownership is getting more affordable, but will house hunters make the move this season?

    By MEG HANDLEY

    Posted: May 3, 2011

    In Pictures: 10 Major Cities Where Buying Beats Renting

    In Pictures: 10 Major Cities Where Buying Beats Renting

    Thanks to falling home prices and rising rents, would-be home buyers have the upper hand this house-hunting season. In nearly 4 out of 5 major U.S. cities, it's now cheaper to buy a home than to rent. That's up from 72 percent of cities last quarter, based on the Rent vs. Buy Index released by online real estate resource Trulia.

    Click here to find out more!

    "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, head of communications at Trulia, in a press release. "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."

    [In Pictures: 10 Major Cities Where Buying Beats Renting.]

    Areas with the most affordable housing market conditions tend to be cities hardest hit by the foreclosure crisis, including Las Vegas, Phoenix, and Miami. Meanwhile, those with more affordable rental markets included New York City, Los Angeles, and Seattle. Omaha, San Jose, and Detroit had some of the largest quarter-over-quarter jumps in favor of homeownership.

    Despite the overwhelming data supporting home buying this season, experts emphasize that above all, the real estate market is local. "This metric is a good baseline for the rent versus buy decision, but it doesn't capture everything," says Jonathan Miller, president of New York City-based Miller Samuel Real Estate Appraisers. "Locally, it may be cheaper to buy then rent, but that doesn't speak to your investment. In other words, how many years before I can 'get above water,' or see a return?"

    [See Why We're Shunning the McMansion.]

    The time factor is one of many stumbling blocks preventing house hunters from making the jump from window shoppers to homeowners, Miller says. During the housing boom, homeowners were virtually guaranteed to make money or at least break even on their home sales, regardless of the period they owned the home. In today's market, experts see home prices appreciating much slower, therefore home owners will have to make a longer commitment to their housing investments than in previous years. "The future upside is much farther down the road," he says. "You're looking at five, maybe 10 years out of this sort of rocky bottom."

    Until consumers regain confidence in the housing market and economy, Miller and others expect the rental market will continue to benefit from apprehensive house hunters. "There's been some erosion in attitudes toward homeownership," says Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard University. "There's two parts to the home buying decision: the will and the way."

    [See What Moves Mortgage Rates?]

    Belsky says the spike in home prices and increased housing market activity following the first-time home buyer tax credit in 2010 demonstrates pent-up demand, but that the market isn't currently providing enough incentive for house hunters to make a move. "The 'way' right now is really being blocked by the underwriting standards being applied to loans," he says. Even if some of the slack in the market tightens, the rebound won't be as strong as it would otherwise have been, Belsky says, primarily because many would-be home buyers won't be able to qualify for a loan with favorable terms.

    Despite the numerous obstacles for prospective home buyers, experts remain confident that improving employment and economic data will breathe life into the housing market this spring and summer. More Americans signed contracts to buy homes in March, according to the National Association of Realtors' pending homes sales index—up 5.1 percent—a signal that could mean more house hunters are snapping up bargains. "We're sort of in that in-between phase," says Heather Fernandez, vice president of marketing at Trulia. "People aren't running out to buy that dream house yet because they're not that confident. But we're starting to see consumer confidence shift, people are more interested in home buying, rental rates are still high, and therefore, just based on the numbers, increasingly homeownership is becoming more affordable across the U.S."

    Twitter: @mmhandley

  • NEW FHA REVERSE MORTGAGE PROGRAM - INTRODUCTION

    Posted Under: Home Selling, Financing, Property Q&A  |  October 14, 2010 7:54 PM  |  250 views  |  1 comment
    Many homeowners are aware of FHA backed mortgages. But fewer are aware of the "reverse mortgage" option that allows current homeowners with equity in their homes to pull that equity back out and live on the proceeds. Unlike a "second mortgage" a reverse mortgage does not need to get paid back -- ever -- as long as the homeowner lives in the home. Payouts vary by the age of the homeowner, with older homeowners getting more. It's often a great way for homeowners to live off the value they have accumulated in their homes when other sources of income have dried up.

    For more information, read the next four blogs I have posted starting with the NEW FHA REVERSE MORTGAGE PROGRAM - Part 1.
  • NEW FHA REVERSE MORTGAGE PROGRAM - Part 4

    Posted Under: Home Selling, Financing, Property Q&A  |  October 14, 2010 7:48 PM  |  196 views  |  No comments

    HECM borrowers may opt to receive funds as a lump sum at loan origination, establish a line of credit or request fixed monthly payments that are disbursed for as long as they continue to live in the home. Funds are advanced to the borrower and interest accrues, but the outstanding amount does not have to be repaid until the borrower dies, leaves the home or sells the property. At that time, if the balance due on the loan exceeds the value of the home, FHA insurance pays the difference.

    For more information on FHA HECM Saver option, read FHA's mortgagee letter 2010-34.

  • NEW FHA REVERSE MORTGAGE PROGRAM - Part 3

    Posted Under: Home Selling, Financing, Property Q&A  |  October 14, 2010 7:47 PM  |  190 views  |  No comments

    HECM Saver will have an upfront premium of only .01 percent of the property's value. Under the HECM Standard option, the upfront premium will remain at 2 percent. The MIP for both HECM Saver and HECM Standard will be charged monthly at an annual rate of 1.25 percent of the outstanding loan balance.

    The reduction in upfront fees will be accomplished while substantially lowering the risk to the FHA insurance fund because the principal limit or amount of money available to a borrower under the HECM Saver program will be reduced. Borrowers will receive approximately 10 to 18 percent less under the HECM Saver option, than they would receive under HECM Standard.

    Want to learn more? Go on to Part 4!


  • NEW FHA REVERSE MORTGAGE PROGRAM - Part 2

    Posted Under: Home Selling, Financing, Property Q&A  |  October 14, 2010 7:47 PM  |  193 views  |  No comments

    FHA designed HECM Saver as a second reverse mortgage option for the purpose of lowering upfront loan closing costs, for homeowners who want to borrow a smaller amount than what would be available with a HECM Standard loan. This option will be available for all HECM case numbers assigned on or after October 4, 2010.

    "Despite the popularity of our HECM loan product, we have noted concerns that some senior citizens find that our fees are too high for them," said FHA Commissioner David Stevens. "In response, we created HECM Saver which will provide seniors with a reverse mortgage option that significantly lowers costs by almost eliminating the upfront Mortgage Insurance Premium (MIP) that is required under the standard HECM option."

    Want to learn more? Go on to Part 3!

« Read older posts
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer