Renters: Stop it!

Yesterday, the Atlanta Journal-Constitution wrote THIS ARTICLE about how rent is increasing in the metro-Atlanta area. The reason? A combination of an increase of regular renters and also the people who got really bad interest-only loans at the peak market and lost their homes. They are moving into rentals while they try to rebuild their credit, which can take up to 7 years.

The demand for rental units is increasing very quickly. Landlords are able to not only be more choosy about their tenants, but also charge more for the units. Many people pay more for a rental than they would their own mortgage. Not only are they paying more for housing per month, but they are also not getting great home owner tax benefits.

Owning a house is a responsibility not to be taken lightly and it certainly isn't for everyone. What holds some renters back from taking the plunge into home ownership can be as simple as not knowing how to plan for it.

If you think you may be ready, I can talk with you and help you assess whether you should try to stop paying someone else's mortgage and start paying your own. If you are not prepared to take that next step yet, I can put a plan together for you to show you what you can be doing now to work towards that end.

The rents are going up and the cost of houses are going down. If you've ever thought about buying, give me a call today at 770.862.8002 and we'll talk it over.

Michael Bradford, Associate Broker
Southern Prime Realty

Ready for your first home?

Most of us have heard that the "sub-prime" mortgage market is in trouble. According to Realtor.org, over 25 major lenders have quit or severely limited this area of lending. On Wednesday, July 18th, The national Association of Realtors testified before Congress regarding a reformed FHA (Federal Housing Authority).

"REALTORS® support efforts to give consumers affordable alternatives to subprime mortgages. We believe that a modernized FHA could offer a safe alternative, especially for borrowers with less than perfect credit,” said John Anderson, broker-owner of Twin Oaks Realty in Crystal, Minn., testifying on behalf of NAR. See the rest of this article here. FHA loans have come back in vogue. Not that they ever left us, but the market produced products that made FHA loans less attractive. That is changing because of the sub prime markets colapse.

Research by the U.S. Bureau of Labor Statistics (BLS) show that the cost of home ownership is going down while the cost of renting is on the rise. With the large inventory of entry level homes available, now may be the best time for renters to own their first home. For those of us who can remember buying our first home, it brings back memories of fear and cold sweats! I personally thought that the $52,000 we paid for our first house was all the money in the world and that I would never pay it off. Looking back, even though I was scared to death, it was the best financial move I ever made.


If the thought of buying your first house has you curled up in the corner, give me a call @ 770-862-8002. I can help you decide if this really is the best time for you to buy your first home.

Real Estate Investing 101

Since we've been on the topic of real estate investing, I wanted to make a point to help clear up any confusion that people have about when a good time to invest in real estate might be. The best time to invest in real estate is ALL OF THE TIME - but especially when the market is slow.

Allow me to explain: When markets are sluggish and the prices are in a holding pattern or downward trend, people begin to worry that it's a bad time to buy and they don't. This is a costly mistake. The best time to buy any investment is when prices are low. (Stock Market Rule #1: "Buy low, sell high" - Also applies to real estate). You can get some amazing deals right now! It is a buyers market... especially in Atlanta. Ands there is a glut of houses listed so you have many more choices and sellers are more open to negotiate on things like price, terms, repairs and even help with financing.

Why wait another minute? NOW is the time to get that investment property you've always wanted. I can help you find a cash flow stream, show you how to get a tenant in and let them pay your mortgage for you while the value of the house, along with your net worth, grows every day. Give me a call and let's talk about your real estate investing strategies.