Rethinking Federal Subsidies
Categories: Finance
Robert Shiller, the Yale economist (and as in the Case-Shiller housing price index) wrote an interesting piece for today’s NY Times about FHA and other government housing subsidies. He talks about the taxpayer subsidizing homeownership not only as an economic stimulus but also as a means to preserve our sense of national identity. He claims Americans believe owning a home in a healthy community is connected to individual liberties that embody our national identity. You know – a way to avoid the oppression of the masses imposed by the lord of the land, etc. After discussing the merits of renting, he says we need to retool or reinvent our financial institutions (think Fanny Mae, Freddie Mac, FHA) to create a different kind of housing while preserving our core values even if the subsidies don’t end. The subsidies should focus on “enhancing the qualities of life that we really value”. I wonder how that would play out on Wall Street.
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Erin Go Feh! The Hoboken Open House Google Map for Sat. 3/6 and Sun. 3/7
Categories: Open House
Every Open House in Hoboken this weekend as compiled from the Midweek and Hoboken Reporter, the MLS, every Realtor website and email and Craigslist courtesy of the Turoff Realty Team
I’m not sure exactly when the transformation took place, but apparently at some point during the last few years I became my grandfather. I fall asleep in the chair watching TV, the music kids listen to gives me a headache, I think modern athletes don’t measure up to the heroes of my youth (Joe Namath, now THAT was a quarterback!) and I have no patience for the drunken tomfoolery we call the Hoboken St. Patty’s Day Parade (grumble, grumble, grumble.)
Well, last time I checked Mayor Zimmer and the City Council had not called for my opinion, so I guess I’m just going to have to deal with it. For you home/condo owners out there with ground floor units, take my advice and stay home and keep an eye on your property. You’re the first line of defense should someone decide it would be fun to urinate on the building, uproot your tree or toss your garbage cans into the street. Keep a camera handy too so you can show the po-lice exactly who needs an ass-whuppin’ (or at a minimum, a $2,000 fine.)
Surprisingly, there are a fair number of open houses on Saturday too. Not as many as usual, but more than I would have expected. If you are out house hunting, do yourself a favor and keep your route off Washington street. A final bit of warning – if you are going out to drink copious amounts of green beer, and you do decide to stop in to visit some open houses, leave your checkbooks at home. Half a million dollar condos are not impulse purchases.
In all seriousness, be safe, respect your neighbors and your neighborhood, have fun and drink responsibly.
When you look at the map, placemarkers are color coded:
- Studio & 1BRs are red
- 2BRs are green
- 3BR & Bigger are yellow
New listings are marked with a “New Listing” icon.
Click on the location marker for:
- open house date
- time
- unit size
- asking price
- down arrows indicate price reductions
- link to the MLS listing
Want to know which open houses are on Saturday and which only Sunday? Click on “tools” at the top of the list and enter the word “sat” or “sun” (without the quotes) into the search box.
Did you know that the agent hosting an open house is the Seller’s agent? Whether it is the actual listing agent or any other agent from the same company, that person legally represents the sellers. Not only that, the hosting agent – by law – has a fiduciary duty to the seller to get that seller the highest possible price for that property. Do you think it might be a conflict of interest for that same person to then represent you? Many people think so. In fact, in many states (other than NJ) it is illegal for the same agent to represent the seller and also work with the buyer.
Did you know that when you go to an open house you can see the property at the open house on your own and, if you like it, go back to it with your own agent? You can! So if you see something you like at an open house you might want to consider finding your own agent who does not work for the seller. Just because you walk into an open house does not mean that the hosting (seller’s) agent gets to “claim” you as his or her customer – even if you “sign in”. You are the consumer. You are spending your hard earned money on what is probably the biggest investment you will make in your life. Don’t you think you should be able to work with whom you choose?
Questions? Text us at 201 993 9500.
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Why You Might Urge Your Condo Association to get FHA Approval for your Building
Categories: Finance, For Sellers, Hoboken Condos
Could This Help Get Your Home Sold?
We had a heated discussion on this board about the pros and cons of FHA financing with comment0rs on both sides of the argument making some good points. Putting aside for a moment the merits of whether there should be FHA financing, let’s take a look at what FHA lending accomplishes. Many young, first time home-buyers simply don’t have 20% of the purchase price saved to enable them to buy a home. It is possible under certain circumstances to get a conventional loan with 15% or maybe even 10% down but it’s very tough and you have to have stellar credit and pay PMI (purchase money insurance). The FHA program lets qualified buyers put down as little at 3.5% and to include closing costs in the loan. That opens up a whole new universe of buyers.
What Would A Condo Association Have to Do?
To get FHA approval for a building certain conditions must be met and it varies for new construction and pre-existing condos. Here, I’m talking about a building that’s been around for a while and is fully occupied, not brand new construction. For example, (and this is just an overview – for specifics, read this) to the at least 50% of the units must be owner occupied; there can’t be more than a 25% of commercial floor space and it has to be “of a nature that’s homogenous with residential use”; one owner cannot own more than 10% of the condos. There must be adequate insurance on the building, including flood insurance if it’s in a flood zone. Basically, the risk of default has to be spread as thinly as possible. Nonetheless, many condos in Hoboken already may or easily could meet the requirements. Obtaining FHA certification may make the units in those buildings more valuable. Why, you might wonder? Because now they are more marketable. Many potential buyers who might not have been able to purchase your unit now can with FHA approval.
How Do you Do It and What Does it Cost?
What you would need to do if you are interested is to have your Condo Board contact a good mortgage lender. They would help you through the approval process. According to one lender with whom I do a lot of business, it should cost about $3,000 and take about 6 months or less. Now that might seem expensive but the cost could be spread over all the unit owners since they will all benefit from the approval or, if your association has sufficient funds in reserve, could be paid for with that. Something to seriously consider in today’s Hoboken real estate market if you wish to increase your ability to sell your condo.
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I always thought it was built in 2002 or so. I must be mixing it...