By David Hakimi
RISMEDIA, Wednesday, December 26, 2018— Location, location, location. Half of buying a home is all about finding where you want to live. You might've found your dream house, but it's not in your dream neighborhood.
So, what should you be watching out for? Here's how you can find the perfect neighborhood:
Ah—the internet. It provides an immense amount of information. It's easy and entirely accessible for everyone, so you don't have any excuses not to take advantage of it. Look up what everyone is saying about a neighborhood you're interested in. Do people actually enjoy living there? What do they like and dislike about it?
Google the crime statistics for the area; safety should be top of mind. You don't want to get stuck in a neighborhood with a high break-in rate—take your safety and security seriously. At the same time, if you have kids, look up schools in the area. What are they rated? Most school systems have a rating scale based off mostly academics. Find out if they're good options for your children.
Literally. Do drive-bys, and do them at different times of the day. Get a feel for a certain neighborhood. Is there a soccer field or baseball diamond close by? You'll want to know before it's too late whether or not cars will be lined up on your street. Make sure you're in the know. You don't want things like that to come up as a surprise after you've moved in. Furthermore, check out the traffic patterns in the area. What's that intersection near the home you're interested in really like during rush hour?
This might not matter to some—if you're near retirement, it might not matter at all!—but a long commute has the potential to become an everyday stressor, one that you don't need or want. If you take the bus, look up the route and times. If you drive, check out the route during your normal commute times on Google Maps.
This could majorly impact your cost of living. Property taxes greatly differ from one region to the next. Do your research and find out what to expect. Don't let this come as a shock. You want to make sure you can afford the area you want to live in. Be sure to do your due diligence with some good research! Also, take this a step further, and look at other costs of living—think utilities and food prices.
Ensure your perfect home is in your ideal neighborhood. It's worth taking the time to do research and be sure it's really what you want.
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Many millennials who rent a home or apartment prior to buying
their own homes, dream of the day that they will be able to paint
the walls whatever color they'd like, or renovate an outdated part
of their living space.
Many others who have waited to add a pet to their families
daydream about the day that they’ll be able to go pick out their
‘furever’ friend. Owning your own home gives you the freedom to
make those choices.
It is no surprise that having a place to call home, with all that
means, in comfort and security, is the #2 reason. As a homeowner,
you have control over who has access to your home, and you are
able to secure it how you see fit.
Similar to the #1 reason, when you purchase a home, you can
choose to live in a nicer home or choose to renovate a home &
restore its glory. Owning also allows you to accommodate your
growing family or a family member who may need to move in.
Owning a home in a community is one of the major reasons why
residents become more civically involved. The stakes are raised
once your home value is directly tied to the neighborhood and
community in which you live.
As we mentioned earlier, owning a home allows you to use your
monthly housing cost as a savings account that can be borrowed
against in the future. Having this option available during
uncertain times is just one of many reasons why homeowners feel
more secure in their homes.
73%-80% of Student Veterans are male; 21-27% are female.
Only 10-14% of military personnel being women, female Student Veterans are over-represented in postsecondary education.
Only 15% of Student Veterans are traditionally aged college students.
Most Student Veterans are between the ages of 24 and 40.
47% of Student Veterans have children. 47.3% of Student Veterans are married. 62% of Student Veterans are first-generation students.
Read more on VA.gov Student Veteran Factsheet
LOVE WINE? See that picture above? Now imagine it filled with festive tables- lots and lots of wine, tons of food, incredible party music and a Chinese Raffle to benefit Dogs for Disabled Veterans.
Join us for this awesome event! Come and taste dozens and dozens of world class American wines- you'll grab a glass, and try everything from Chardonnay to Syrah, Cabernet to Albarino, Roussanne to Zinfandel! Blends, single varietals. Wines from California, Ohio, Washington, New York, Michigan, Virginia, Oregon, and more! There will even be (oh my!) an International Rose wine table. You've never been to a tasting like this!
The American Fine Wine Competition (AFWC) is excited to invite you to sample all of these delicious wines while enjoying food from area restaurants, a Chinese Auction and the (soon to be famous) "Cork Pull".
Bobby Collins is an American stand-up comedian and film actor. He is coming to Fort Lauderdale. Buy Tickets. 100% Buyer Guarantee. Don't miss the concert with Bobby Collins. Be there on time!
Remember and honor U.S. Military Veterans who served the United States. Join City officials and the Oakland Park American Legion Post 222 to honor all who served this country in the armed forces.
We will be showcasing the top local educational speakers and advocates in the industry. A variety of musical, art, and glass blowing talent for your enjoyment with a great selection of local vendors to shop from and much, much more.
Can Millennials Move On and Up?
By Suzanne De Vita
RISMEDIA, Wednesday, April 11, 2018—
As the biggest cohort of homebuyers, millennials are exercising influence in the market in unprecedented ways. They are at the center of demand for housing—built-up after many moved back in with their parents, and now releasing slowly, but surely, as the crash fades from memory.
There are factors, however, that could keep a lid on the millennial move-out. According to Freddie Mac's monthly Insight, recently released, the amount of households led by young adults is down 3.6 percent from 2000—attributable to costly homes and stagnating wages. From 2000 to 2016, earnings grew just 1 percent for young adults; by comparison, home prices grew 29 percent. According to the National Association of REALTORS® (NAR), in March, home prices were up 5.9 percent year-over-year.
Analysts at Freddie believe the gap is too great to ignore. They posit that affordability constraints are the cause of more than one-quarter of the decline in the formation of households by young adults—and If the climb in costs persists, there could be dire implications for the market. For millennials, even an incremental rise could stall them: A 1 percent hike in home prices cuts the likelihood millennials will head up their own household by 5 percent. (A 1 percent increase in income, inversely, ups the odds 3 percent.)
"Housing costs are a major factor holding back young adult household formations," says Len Kiefer, deputy chief economist at Freddie Mac. "Our research results indicate that 28 percent of the decline in young adult household formation is due to housing costs. If housing costs continue to rise, we could see about 600,000 fewer households over the next decade."
Another factor? Timing. The catalysts (conventionally) for forming a household—aging, children and/or marriage—are not occurring as quickly. Comparing young adults in 2000 and 2016, data on fertility and marriages is lower now than it was—and according to realtor.com® research, "family needs" are the biggest millennial motivator for a purchase.
If conditions improve for millennials, Freddie forecasts an additional 19-21 million households by 2025. The alternative, the analysts believe, could have critical consequences for homeownership, investing and overall wealth.
The cap rate is an important concept in real estate investmenting and it is widely used. There is often confusion about how to calculate the cap rate using various methods. The purpose of this article is to demonstrate several ways to calculate the cap rate.
Perhaps the simplest place to start is to calculate the actual cap rate ratio. The cap rate ratio is just net operating income (NOI) divided by value, so if we know what a property’s net operating income is and we also know what a property’s value is, then we can easily calculate the cap rate.
For example, suppose we know that a property has an NOI of $100,000 and a value of $1,000,000. Then we can calculate a cap rate by dividing $100,000 by $1,000,000:
This results in a cap rate of 10%.
Since a property’s value is often what we don’t know, it is common to simply divide our known net operating income by a market based cap rate. This will tell us what a property’s value is.
Calculating a property’s net operating income is easy enough, but if we don’t know what the market based cap rate is, then how do we calculate it?
One approach is to find comparable properties that have recently sold. Then we can take those comparable sale prices and calculate a cap rate. For example, suppose we observe the following recent sales of similar properties:
Based on our knowledge of the local market we might decide to simply average all three of these cap rates to get a market based cap rate of 8.33%. Now we can use this market based cap rate to figure out a value for our property. If our property has an NOI of $100,000 then we can find its value like this:
This is the expected market value of our property using the direct capitalization method, based on recent comparable sales we observed in the local market.
Another way to calculate the cap rate is based on the relationship between the cap rate and the discount rate. When income and value grow at a constant rate, then the discount rate is equal to the cap rate plus the growth rate. This idea comes from the dividend discount model, also known as the Gordon Model, which is used to value a stock.
We can re-arrange this equation to solve for cap rate, which says that the cap rate is equal to the discount rate minus the growth rate:
So, if we know the required rate of return (discount rate) for a property, and we also know the expected growth rate for the property’s NOI, then we can calculate the cap rate. For example, suppose we know the discount rate is 12% and the NOI growth rate is expected to be 3%. This is how we can estimate the cap rate:
The cap rate is calculated as 12% minus 3%, or 9%.
In this article we discussed several ways to calculate the cap rate. First, we talked about how to calculate the simple capitalization rate ratio when you know both the NOI as well as the value of a property. Next we discussed how to estimate the cap rate when you don’t know the value of a property. This can be done by finding cap rates for recent sales of comparable properties. Finally, we covered the relationship between the cap rate and the discount rate and walked through an example of how the cap rate can be calculated based on the discount rate and the expected growth rate of net operating income.