Posts Tagged ‘Real estate’
Boomers: Is the Housing Market’s Cavalry Here?
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Trends on September 22nd, 2011
Being able to easily meet today’s required 20 percent down payment, boomers should be ready and able to bail this generation out of the housing muddle. So why is this not happening?
Unfortunately, the boomers are too busy taking care of the Gen-Xers that CAN’T qualify for a mortgage in today’s restrictive market.
I still think there’s hope for the market to be recovered by this steadfast generation. For one, they did not purchase their first home during the recent housing boom, so this means they will have a larger home equity cushion and the ability to secure a reverse mortgage.
They are also looking for a different lifestyle and product and are ready to buy. According to the NAHB, specifically appealing to boomers are single-story homes and with all living space on one level.
The 55+ demographic actually account for almost a quarter of all new custom-home purchases, so builders should be catering to this group of middle agers. Unfortunately, homebuilders are contending with a huge overhang of existing homes on the market, and having a harder time getting banks to sign off on construction loans.
Do you think the boomer generation will lead the housing revival? We’ve already seen signs, do you think it’s just a matter of when? Let us know by commenting below or posting on our Facebook page!
Single Women and Real Estate
Posted by Sibet B Freides in Demographics, Real Estate Trends on July 27th, 2011
In 2010, unmarried women made up 20 percent of all homebuyers, according to the National Association of Realtors, compared to 12 percent of single men.
What’s responsible for such a variance? Some experts believe it is a sense of belonging, or “nesting” that drives single women to purchase a home.
The new trend of female buyers is actually causing builders to add some extra features geared toward attracting them, such as gourmet kitchens, more security features, and yards that require little or no maintenance.
So, what is the single woman looking for in a home? Like any other consumer, they desire a great location, good price, and a property that’s in good condition. It is important to single women, however, that the previous owner had given the home some TLC.
Interestingly enough, these buyers are from all different age groups and phases of life. Some are just out of college, others are divorced, widowed, and still others are empty nesters.
As single women focus on real estate, more builders and sellers will respond by catering to the needs of this buying group. We all know it is important to women that they get exactly what they want
How to Market During the 3 Stages of Buying
Posted by Sibet B Freides in Marketing, Real Estate Trends on June 2nd, 2011
In an industry that once used print media as its primary form of delivering the marketing message, there is now an urgent need to employ the Internet to reach today’s homebuyer. A recent study by the National Association of REALTORS found that 94% of homebuyers are using the Internet when they buy a home.
Many real estate companies are “advertising” on the Internet, but they are failing to understand how to really reach their potential customers.
We already know that homebuyers go through 3 distinct stages during the prolonged process of buying a home. In fact, the average person shops a minimum of 12 weeks before purchasing. They start out seeking information about the types of homes that are available. It’s important to remember that they are not yet buyers, so as you lure them to your site you must also be able to answer their questions and provide real value, or they won’t return when they are more serious about buying.
Several weeks into the process, they begin comparison shopping and looking for information about neighborhoods, local market analysis, map-based property search engines, and using many tools and resources. The more resources and tools you have on your site, the more comparison shoppers have a reason to return to you for information.
Finally, these visitors are ready to buy. After months of researching they merely need the emotional trigger that will push them to make a move. It is imperative that your site is updated regularly, and that you have just the right devices ready to assist, but only when this buyer is ready.
Cheat Sheet on Second Home Tax Rules
Posted by Sibet B Freides in Real Estate Economics on May 31st, 2011
Are you in the market for a second home but are not sure about the tax benefits or what needs to be
reported? Here’s a quick summary of the tax rules for second homes:
Second home use
If you use the place as a second home and not a rental, interest on the mortgage is deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt. You can also deduct property taxes paid on any number of homes you own.
Rental use
Many second-home buyers rent their property part of the year. If you rent the place out for 14 or fewer days during the year, that income is tax-free regardless of what you are charging for rent.
If you rent for more than 14 days you must report all rental income. You also get to deduct rental expenses, which can get complicated because you need to divide costs between the time the property is used for personal purposes and the time it is rented.
If you and your family use a beach house for 30 days during the year and it’s rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too.
If you limit personal use to 14 days the vacation home is considered a business and up to $25,000 in losses might be deductible each year. Fix-up days don’t count as personal use.
Tax-free
Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it your principal residence before you sell.
**Please note: This article is for informational purposes ONLY, you should consult a tax attorney or accountant to determine actual tax ramifications.
Will Boomers Reshape the Housing Market Once Again?
Posted by Sibet B Freides in Demographics, Real Estate Trends on May 26th, 2011
Baby Boomers used to be one of the largest targeted demographic groups in the housing industry. As their retirement funds diminished over the past few years, many were forced to work longer before considering a retirement home or community, which put them in a limbo of sorts with the future of the market.
There is a predicted Boomer comeback among builders, only this time the market and their needs will reflect a simpler product line. Land planners now have an opportunity to rethink community and home designs that were originally intended for that age group.
Retiring Boomers are still privy to developments restricted to older buyers, but they are seeking a greater variety of home styles than were offered during the housing boom.
The recession has resulted in less money to spend and brought about requests for less space than previously desired. Successful developments are actually scaling back home sizes by 200 to 400 feet.
With the possibility of younger Boomers continuing to work at least part time post-retirement developers should consider creating space for home offices in their floorplans.
Among the most popular amenities desired, walking trails and fitness centers are still number one on the list. Gated access and the feeling of security also play into the overall picture.
What other features do you think today’s Boomers are looking for? Do you think the 77+ million Boomers are a strong voice in market demands?




