Boise Mortgages

The recent wave of properties entering foreclosure has prompted novice investors to try their hand at real estate investing. Many are shying away from property flipping, because they fear the newly renovated property won’t move fast enough once it’s back on the market, shrinking profits drastically. However, there are a number of investors looking at the abundance of foreclosures as an opportunity to get into the rental property business.

It’s certainly a great idea for someone who knows what they’re doing or does their homework, but there are a number of factors that should be taken into consideration first.

·         Consider the market. Do some research and find out what the percentage of renters to homeowners is in the local area.

·         What’s the average monthly rental for a home similar to the one you’re considering? You won’t be able to command a fee much higher than the average unless your rental property is something special.

·         Consult with an Idaho mortgage broker. Find out what your financing options are for an investment property, and what your monthly mortgage will be. For rental properties, it’s a good idea to escrow your taxes and insurance so you’re not surprised by a tax bill mid-year. Will the average month’s rent cover all your expenses?

·         Create a budget. You should be able to cover several months rent without a tenant. Depending on the amount of work that needs done to the property to make it tenantable, you may even need to pay several months rent upfront before even renting the property out. Things happen – tenants don’t pay, they break their lease, and you’re the one stuck with a mortgage to pay.

·         Buy smart. There are an abundance of foreclosure gems in the Idaho real estate market right now, but never buy a property without a tour and inspection. Often foreclosures have unforeseen problems that must be repaired before renting the property, and without a property inspection, they could be easily missed.

If you follow these simple guidelines and invest wisely, now is a great time to get into investing in Idaho real estate. Property values will begin to creep up again over time, and you’ll be building equity in a property that you’re really not paying for (or at least not paying much for). Work with a trusted Idaho lender to get the best financing options available.

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For the first time in a year, the Dow Jones Industrial Average topped 10,000.  JP Morgan Chase has reported higher than expected earnings for the third quarter, and banks and securities firms are reported to be paying out record levels of employee compensation and bonuses this year.

Amid what seems to be highly promising news about the state of our economy, a rather gloomy fact looms: Foreclosures have hit an all-time high. How can this possibly be happening? It’s apparent that Wall Street is on its way to economic recovery – and not long after the government spent billions of dollars bailing out the very financial institutions that are now reporting record earnings.

Foreclosures have risen a whopping 23% since this time last year, with approximately 940,000 homes falling into foreclosure during the third quarter. That’s nearly 1 in 136 homes in the U.S. that received a foreclosure filing in the third quarter alone! The national unemployment rate is predicted to soon top 10%. We may just be witnessing a widening gap between the upper and middle classes.

In Idaho real estate, foreclosures rose 28% during the third quarter – 5% higher than the national increase. Nevada, Arizona, and California topped the list for the highest foreclosure rates in the third quarter – a trend we’ve been seeing since near the beginning of this economic crisis. Idaho, unfortunately, made number five in the top ten states with the highest foreclosure rates.

For investors or those considering a move to the beautiful state of Idaho, it should be easy to find a bargain in Idaho real estate for some time to come. We’re entering the typically slower winter months, so it’s not likely that inventory will decrease significantly in the near future – paving the way for a buyer’s market in Idaho real estate through next fall.

Call an Idaho mortgage lender to take advantage of current low interest rates and find out about various loan programs for which you may qualify. You could get a great deal on an Idaho foreclosure!

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In many cities, residents are finding it cheaper to own their own home than to rent. Rental rates haven’t suffered as significantly as housing prices, because the demand for rental properties actually increased throughout the housing crisis, as families who could no longer afford their mortgages resorted to renting.

If you’re making a move to a new city, such as beautiful Boise, Idaho, do some research before jumping in to a rental – check out the local housing prices and contact an Idaho mortgage broker to get information on interest rates. You may be surprised to find that your monthly mortgage payment could actually be less than the average rent in the area!

Even better news is that once you’re a homeowner, you qualify for some tax breaks available exclusively to homeowners. For example, mortgage interest you pay on your Idaho home loan is tax deductible – a sizeable sum in the early years of your loan term, as most of your payments for several years go to interest.

Property taxes are often something first-time homebuyers are afraid of. Renters aren’t obligated to pay property taxes – that responsibility falls on the shoulders of the property owner. Making the leap to home ownership is scary because of all the perceived added costs, including property taxes. However, property taxes are fully tax deductible!

You can also qualify for tax deductions for making home improvements. Currently there are tax rebates available for making energy-saving improvements to your home, such as purchasing Energy-Star appliances.  Keep all receipts throughout the year for improvements you make to your home. While they won’t all be tax deductible, you can consult with your accountant or tax preparer at the end of the year to determine which investments are tax-deductible, and not have to worry about having the appropriate documentation.

Contact one of our Idaho mortgage specialists today for information on current Idaho mortgage rates and loan programs!

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Nearly half of all home sales in the first part of the year were attributed to first-time buyers, setting new historic records. There are a few factors that make the current market prime for the first-time buyer: low prices, loads of inventory, and of course that $8,000 tax credit we’ve all been talking about for months.

Typically, first-time buyers don’t receive the gold standard royal treatment by real estate agents that seasoned buyers and investors do, particularly those looking at $1 million-plus properties. The simple fact of the matter is that an agent is going to make more money from what could essentially be the same amount of work when dealing with higher-ticket properties. First-time buyers generally seek out fixer-uppers or lower-priced homes because they often lack the capital required for a significant down payment.

Now we’re seeing more first-timers than ever before, because real estate market conditions have led to greater home affordability and the $8,000 tax credit provides that extra little push needed to get them to take action. Imagine what the market conditions would be like with 50% fewer buyers in the first part of the year!

First-time buyers are now seeing better treatment by agents, who are willing to take whatever business they can get. The Idaho real estate market is prime for first-time buyers, with hundreds of affordably-priced properties waiting to be snatched up by a young family in pursuit of the American dream. Idaho mortgage rates are still historically low, so rising interest rates aren’t really making a negative impact on affordability at this point.

And, of course, that $8,000 tax credit – we may be tired of hearing about it, but you have to admit it sweetens the deal. Idaho first-time homebuyers can recoup a significant portion of a down payment, and even take advantage of it before tax time with special loan programs that are available to qualified buyers. Bottom line: bring on the first-time buyers, they could be saving the market!

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