Zaida Patel, Realtor ----- Blog Website » san ramon

Renting vs Buying a new home

Zaida Patel — Thu, 23 Feb 2012 18:02:57 +0000

Is it better to rent or own? It is a matter of opinion. According to the New York Real Estate news, a professor UC Berkeley, who did a case study said it is better to rent all the time. “And not just from a practical standpoint; also from a financial one, Reuters reported.

The reason is that the carrying costs associated with homeownership, such as property taxes and renovations, often cause homeowners to fail to meet their other financial goals, the professor, Rich Arzaga, said.

Of course, there are critics of that logic.

“To state that owning a home is or isn’t a good investment is too simplistic,” said Jeffrey Rogers, president of Integra Realty Resources, a New York-based real estate appraisal firm. “It depends. In times of relatively higher rents, low home values, and low interest rates, it makes sense to own a home. But in a reverse market, it wouldn’t be economically feasible. Over time, those who purchase in down or flat markets with low interest rates come out ahead.”

click here on story: Reuters

Lenders Delay Evictions – Borrowers live rent free

Zaida Patel — Sat, 06 Mar 2010 00:03:31 +0000

Los Angeles Times

Many borrowers in default stay put as lenders delay evictions
Despite being months behind, many strapped residents are hanging on to their homes, essentially living rent-free. Pressure on banks to modify loans and a glut of inventory are driving the trend.

To read the full story, please click here.

John Laing Stops Building in Fremont, CA

Zaida Patel — Sat, 25 Apr 2009 16:49:42 +0000

On February 1, 2009, I listed the model home (previously sales office), and leased by John Laing Developer. Every week-end, 30-40 homebuyers, came asking about the status of the John Laing builder. Because the home I listed is owned by a private owner, I did not have any information about the builder’s status.

Therefore, I called the John Laing Headquarters in February and I was told that they are not going to continue building or complete the Villa d’este community in Fremont. It’s up to their lender to decide on the future of this community in the Ardenwood area.

However, since this is the only floorplan and home available, there is no competition. Unfortunately, the asking price is not attractive to home buyers and timing is wrong, due to the current economic trend. The owner bought the model home for $1,400,000. It is currently listed for $1,275,000 which is still a loss for the seller. The property does have over $200,000 of upgrades with high end appliances.

Recent article about the John Laing company, please click here.

Article on Timeline of John Laing’s pathway to Bankruptcy, please click here.

New Loan Fees for Homebuyers

Zaida Patel — Fri, 24 Apr 2009 19:28:45 +0000

SF Chronicle

Beginning April 1, Fannie Mae and Freddie Mac will increase mandatory fees and toughen credit-score and down-payment rules.

Under the new guidelines, applicants will be charged more for down payments of less than 30 percent. Home buyers with FICO scores between 700 and 720 will pay an extra three-quarters of a point. Applicants who purchase a condominium and do not have a 25 percent down payment also will pay a three-quarter point add-on penalty, regardless of their FICO score, for purchasing a condominium instead of a single-family home.

The two Government Sponsored Enterprises (GSEs) said the additional fees are to counter higher risks and losses associated with certain loan products, buyer equity stakes, and credit scores.

To read the full story, please click here