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Shah Tehrany's Blog

By Shah Tehrany | Mortgage Broker
or Lender in New York, NY
  • MARKET UPDATE 5/30/12: From The Capital Markets Desk Of Franklin First Financial

    Posted Under: Market Conditions in New York, Financing in New York, Rent vs Buy in New York  |  May 30, 2012 9:16 AM  |  378 views  |  No comments

    Well normally I would be telling everyone about this big day ahead of us this Friday with the release of May’s NFP report. However, with the crisis in Europe, I am beginning to wonder if it really matters anymore. We are experiencing a huge flight-to-quality trade as investors are flocking to the safety of US treasuries and the German Bond markets. How are these numbers to show you that the world is very concerned about the spreading debt crisis in the EU zone…a 1.65% US 10yr which is an all-time low and a 1.28% 10yr German 10yr Bund.

    I know this story is getting old but it is so incredibly broad and complex not to mention purely horrific so it will consume the financial markets for the near to intermediate future. So while I always respect the importance of domestic economic numbers, especially the NFP report, I must say that in short time the focus will be right back on the EU crisis.

    Where do we start with highlighting the problems? Greece?? Yesterday’s news that is far from resolved. Italy?? They had an extremely bad bond auction yesterday. Spain?? In the midst of a huge banking crisis that will require the help of the European Central Bank (ECB). Ireland?? Their banks also need more capital to survive. You can pretty much throw a dart at the European map and hit a country that is on the brink of major financial collapse if they do not get some help. Where does the ECB draw the line? I would not want to be the one making these decisions and I think very few would like that gig.

    In the meantime, we in the US are totally at their mercy. US stocks are getting spanked again after a few days of veiled optimism. Commodities are down. All this is pointing to a major “risk-off” trade that everyone involved in the financial markets are participating in. So we as originators will benefit with lowers bond yields and lower mortgage rates. Understand, however, that it is coming at the expense of a global economic crisis that will lead to a global economic slowdown. It has the makings of being a deep slowdown that may take years to reverse.

    Like I say a lot…this is historic textbook stuff that will be reviewed and analyzed by some very smart folks for many years to come.

    Source: http://www.askshah.com/market-update-53012-from-the-capital-markets-desk-of-franklin-first-financial/

  • A Closer Look At The 20 Hottest Real Estate Markets In USA

    Posted Under: Market Conditions in New York, In My Neighborhood in New York, Rent vs Buy in New York  |  February 7, 2012 11:48 AM  |  609 views  |  1 comment

    HotPads.com, the national housing search engine, published quite an insightful statistic about how the prices of real estate changed in 2011. Their data showed that the rental price of 2-bedroom units jumped 3.75% in 2011, while the sale price fell by 1.83% in the same period.

    "Studio rentals remained the highest growth segment, with a 7.12 percent increase over the year. One and two bedroom rental properties also saw a price increase, 2.59 percent and 3.75 percent respectively, while three bedrooms dipped by .31 percent.", reports HotPads.

    According to their data, popular metro areas like New York, Boston, Miami, San Francisco, Los Angeles, and Chicago had some of the most expensive rental listings in the U.S., as measured by median listing prices of two bedroom properties. Rental listings in San Francisco appeared in particularly high demand, staying active for just 28 days on HotPads, compared to an average of 49 days across other top metro markets.

    Here is the list of the 20 hottest markets in the USA: http://www.askshah.com/a-closer-look-at-the-20-hottest-real-estate-markets-in-usa/

  • What You Must Know Before Buying a Home

    Posted Under: Home Buying in New York, Home Selling in New York, Rent vs Buy in New York  |  October 19, 2011 1:12 PM  |  1,245 views  |  No comments

    Buying a new home can be a stressful experience, but it won’t take as much effort if you are properly prepared with a well-planned strategy.
    • First things first, find the perfect home. Research the area, search websites. Make sure you have your eye on the perfect home. Disappointment should never be an option. Make sure you can afford the house and won’t overstretch yourself financially. Make a budget, calculate the affordability and expenses, find the best mortgage for you, or ask a real estate agent for advice. Lots of advice.
    • Be prepared. Make sure you have all the documents and money that are required to close the deal. Don’t let yourself get stressed out because of things like divorce decrees, tax returns, updated check stubs, documentation of bills that you’ve recently paid down, even driver’s licenses. Consult a mortgage broker (or just give me a call) and real estate expert early in your planning process. You might keep hearing about 3.5% down FHA loans, but ask your local pros to check for you-  it might cost an additional 5 or 6% of the purchase price just to close such a loan in your area and price range!
    • Educate yourself. Read and learn about standard practices and timelines for a real estate transaction. Research the local market, ask your mortgage agent for advice. Follow the news; find out how the market is moving and what’s changing. Are the mortgage rates falling? Do you know what that change entails? Preparation will take some time, sometimes months, but that’s nothing compared to the long life you’ll have in your new house. A month is a reasonable amount of time to prepare and educate yourself. Knowing what should be done, what you can afford can give you a realistic expectation of what lies ahead.
    • Keep your timeline flexible. Sometimes things can eat off the planned time when you are in escrow: a bank-owned property asset manager may be slow to get the necessary signature, the house may need additional inspections, you may need to go to the bank in person to wire cash or to increase your deposit… there are number of things that can (and often will) happen and force you to reschedule, and delay the process of buying a new home. There will be glitches in your daily calendar and daily routines while you are in the escrow. The best practice is to plan on some overlapping days and weeks between the time you will be able to move into your next home, and the time you will be out of your current home.
    • Get pre-approved. Often buyers’ short sales fail to get approved by the seller’s bank at the last minute, and they fall out of escrow as a result. Sometimes deals go dead after properties fail to meet the buyer’s mortgage guidelines because of the condition the property. An electrical problem or a high-cost pest report, for example, can be an effective deal breaker. To avoid these issues, make sure the other party meets your qualifications and has the ability to close the deal before you get into contract. Ask your real estate agent to check and collect as much information as possible about the seller’s equity position, what banks are involved and how successful the listing agent is at closing short sale transactions.
    (image courtesy of alancleaver_2000/flickr)
  • Things to Consider When Buying a Home (Infographic)

    Posted Under: Home Buying in New York, Rent vs Buy in New York, Property Q&A in New York  |  October 4, 2011 10:49 AM  |  1,509 views  |  No comments

    Today’s mortgage industry continues to evolve despite the constant market turmoil. With Obama’s recent debt ceiling agreement, mortgage rates have significantly declined and the conditions for buying a home have become extremely favorable.

    In a mortgage environment such as this, the team of AskShah – The National Mortgage Expert, has prepared a “Things to Consider When Buying a Home” infographic that thoroughly illustrates the fundamentals of buying a home in the United States. Using latest home-buying statistics (from Q2, 2011), and advices of experienced mortgage experts, this infographic explores all things that need to be considered when purchasing a home nationwide, prices of median single-family homes in various cities around the States, most and least expensive cities to buy a home, best real estate websites, pros and cons of buying versus renting, and more.

    The infographic can easily be embedded on blogs and websites. To grab the embedded code, visit: http://www.askshah.com/infographics/buying_a_home

    This infographic is provided to you by Ask Shah.
    Click here to add this infographic to your website.

  • Is It Better to Buy or Rent?

    Posted Under: Rent vs Buy in New York, For Rent in New York, Rentals in New York  |  September 28, 2011 2:04 PM  |  996 views  |  No comments


    People often ask themselves whether it is better to rent or buy a home, as they consider the amount of their monthly income in today’s tough economy. Rent prices may rise, while at the same time home value may fall. On one hand, you may have the financial backing to pay for the mortgage on the home you’ll own, which will help you gain equity. On the other hand, however, you may also want the flexibility to move after a couple of years, and in this scenario is better for you to rent. Renting is also a better decision when you want to observe the market trends, and take your time before purchasing the home of your dreams. For the right price, of course.

    Deciding on this will surely mean calculating and projecting your income, as well as the rent, the amount of mortgage you need to take out, and all the possibilities out there… it’s a daunting tasks.

    To help you with this decision, I suggest you to use the New York Times interactive calculator to estimate and compare the value on the property and the cost of renting. This advanced calculator will surely assist you in deciding whether renting or buying a home is the best option for you.

    For any other questions or concerns, and for a more thorough understanding of the market, AskShah for help!

  • New York State legislators agreed to put a cap on high property taxes

    Posted Under: Rental Basics in New York, Rent vs Buy in New York, Rentals in New York  |  September 20, 2011 2:30 PM  |  1,013 views  |  No comments

    Legislative leaders in Albany are getting close to renew regulation to cap property taxes on rent-regulated apartments which will make it more difficult for local governments to raise property taxes on suburban and upstate homeowners.

    Controlling the rising property taxes within the five years should bring a stop to the exodus of many homeowners and businesses from the state. Governor Andrew Coumo and the two chambers agreed to establish a local tax cap, containing the growth in property taxes outside the cirty at 2% a year, writes the New York Times. The legislation will make it harder for city landlords to charge market rates to tenants. The deal will mean that city’s rent will be more protected from landlords who want to deregulate rent-stabilized apartments.

    Just New York City has about one million rent-regulated apartments, which under certain conditions can be returned to the free-market. With the new legislation the minimum threshold to deregulate a vacant apartment would increase to $2,500 a month from $2,000. Another provision will set a maximum yearly income of $175,000 for people who qualify for rent-regulated apartments. It will be also required from landlords to invest 50% more in renovations to take away the apartment from rent controls.

    Need more information, or advice? Just Ask Shah!

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