Buying a Home in South Florida Now is the Right Time to Jump in

 

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The FED Plans to Lower Interest Rates Soon

There is a pent-up demand for homes waiting until interest rates come down, remember that during the COVID Pandemic when interests came down home prices almost doubled in under three years.

I think home prices will go up in Broward County, FL when interest rates come down, maybe not as much as during the pandemic but nonetheless by a substantial amount. 

The same holds true for Commercial Properties, the appreciation rate surpasses that of most of the other Counties in the country.

Why is now the right time to buy my home in south Florida?

Interest rates are high now although they are expected to come down in 2024 you can always refinance when interest rates come down, as a rule of thumb it will be worth it to refinance if interest rates drop 2% or more from your current interest rate, talk to your bank or mortgage broker about this.

When interest rates were low homes in South Florida and in most of the country homes went up in price considerably, it's easy to see why:

For a $250,000 Home every 1% drop in interest rates will save approximately $40,000 over the duration of your 30-year mortgage, and that is what just happened!

For a higher price rate extrapolate the numbers for example the savings on a 1% interest drop in $500,000 loan will be approximately $80,000 over the 30 year life of the loan.

What do you think will happen to home prices once interest rates drop? I personally think that they will go up just like they did in recent history!

But why prices don't come down proportionally when interest rates go up. What happened to What goes up must come down?

What do people that bought during High Interest time periods think?

In the 1990's interest rates were around 10%, when you ask those people that bought during those high interest rates times if they did the right thing most of them say yes because home prices kept going up and as added plus they were able refinance at a lower rate sometime later.

For those buying cash you're likely to get a better deal during high interest times, sellers know that they can count on the house to close when you are buying with cash while sometimes financing falls through at the last minute.

Some Reasons for The High Prices in Homes in South Florida

There could be several reasons why homes in South Florida are not coming down in price. Here are a few:

High demand: South Florida is a desirable location for many people due to its warm climate, beaches, and recreational opportunities. The demand for homes in the area may be consistently high, which can keep prices stable or even drive them up.

Limited supply: If the supply of homes for sale in South Florida is not keeping up with the demand, it can lead to higher prices. Factors such as land scarcity, zoning restrictions, or a lack of new construction can contribute to a limited housing supply.

Retirement destination: South Florida is known for being a popular retirement destination, with many retirees seeking to enjoy their golden years in a warm climate. This demographic trend can sustain demand for housing and keep prices relatively stable.

Foreign investment: South Florida has attracted significant foreign investment in real estate, particularly from Latin American and European buyers. These international investors may view South Florida as a haven for their money or an attractive place to own a vacation home, which can contribute to price stability.

Economic factors: The overall economic conditions in the region, such as job growth, income levels, and business opportunities, can also influence home prices. If the local economy is strong and thriving, it can support higher home prices.

How Much will my Fort Lauderdale Home be worth in 5 years?

In the period of from 2018 to 2023 Residential Real Estate Prices increased by a whopping 20 % per year or close to 100% by 2023.

Is as though the world has taken notice and everyone wants to move to Fort Lauderdale and nearby cities!

Going with a very conservative appreciation rate for Homes of 3.5% per year you can expect a $500K Home to appreciate to:

5 years $594K

10 years $706K

20 years $1 Million

Due to low interest rates and other issues home values in Broward County FL increased by at least 20% in 2021, so as you can see this is a conservative estimate of future value, we might get another interest rate decrease soon, we’ll have to wait to see how the home market will react, it is impossible to predict the future, we can only look back.

How to Get Ready to Buy:

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If you want me to work for you, or you want a list of Homes the Available Text me at 954-648-6095

Thank you for the trust placed in me,

Antonio Ortega LLC

                 

www.AntonioOrtegaLLC.com     For Residential Properties

www.AntonioOrtegaLLC.net       For Commercial Properties
        

Visit our Secure Website often:  www.SouthBrowardHomesbyTony.com

Antonio Ortega LLC Licensed Real Estate Professional with Global Luxury Realty

P.S. Be it today, tomorrow or six months from now, I'm prepared to offer you dedicated extraordinary service.

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Buyer’s Market Vs. Seller’s Market Which one do you Need?

 

It is obvious that if you are a buyer you want to be in a Buyer’s Market and if you are a seller, you want a Seller’s Market.

A buyer's market and a seller's market are two terms used to describe the prevailing conditions in a real estate market. Here's an explanation of each:

Buyer’s Market: In a buyer's market, there are more properties for sale than there are buyers looking to purchase them. This surplus of available properties gives buyers an advantage in negotiations.

Characteristics of a buyer's market may include:

High inventory of homes for sale.

Properties stay on the market for longer periods without being sold.

Prices may be stagnant or even decreasing.

Sellers may need to offer incentives or concessions to attract buyers.

Buyers have more choices and greater bargaining power in a buyer's market. They can take their time to find the right property and negotiate for better terms, such as lower prices or favorable contingencies.

Seller’s Market: In a seller's market, there are more buyers looking to purchase homes than there are properties available for sale. This scarcity of available properties gives sellers an advantage in negotiations.

Characteristics of a seller's market may include:

Low inventory of homes for sale.

Properties selling quickly, often with multiple offers.

Prices may be rising due to high demand and limited supply.

Sellers may receive offers at or above the asking price.

Sellers have the upper hand in a seller's market. They can often sell their properties quickly and for a higher price, with less need to offer concessions or negotiate extensively with buyers.

How to Get Ready to Buy:

Click Here to See Fort Lauderdale Homes for Sale

P.S. Be it today, tomorrow or six months from now, I'm prepared to offer you dedicated extraordinary service.

Thank you for the trust placed in me,

Antonio Ortega LLC Fort Lauderdale

                   
        

www.AntonioOrtegaLLC.com     For Residential Properties

www.AntonioOrtegaLLC.net       For Commercial Properties
        

Visit our Secure Website often:  www.SouthBrowardHomesbyTony.com

If you want me to work for you, or you want a list of Homes Available Text me at 954-648-6095

Antonio Ortega LLC Licensed Real Estate Professional with Global Luxury Realty

Click Here to Contact Us

Check Your Credit Report Before Buying

Getting an annual Free Credit Report is important in this age when credit is important not only when buying a house but even when seeking employment,

There are businesses that exist solely to scrutinize your credit history. Credit card companies and other lenders rely on this information, so your credit score determines your chances to borrow money — and how favorable the terms will be.

A Crash Course in Credit Scoring

There are three major credit-reporting agencies: Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.tuc.com). The website of each details how to get a copy of your report via mail or Internet. Be sure to order one from all three.

Until recently, credit scores’ calculations (and how to improve them) were literally a secret. Fair, Isaac & Co. is the company that blazed the credit scoring trail 40 years ago, and — under pressure from consumer groups, Congress, and lending institutions — they recently decided to provide credit scores and guidance on their website (www.myfico.com).

Credit scores can range from 200 to above 800. Scores below 620 are considered risky, but 720 and above should afford you excellent rates and terms for any kind of credit.

There are five categories used in determining a credit score:

1. Payment history (35% of total score): Late payments and amount owed are the two areas scrutinized most closely. What you may not realize is that recent late payments are more detrimental than those from years before. According to Fair, Isaac, “A 30-day late payment from last month will count more than a 90-day late payment five years ago.”

2. Amount owed (30% of total score): Large outstanding balances on your accounts do not necessarily damage your score. The significant factor is the percentage of total available credit you’re using on your credit cards. A common mistake is to consolidate many small credit card balances onto one card. This will actually cause your score to go down because your credit line on the one card will be closer to your credit limit.

3. Length of credit history (15% of total score): If you’re just starting out, you know that you need credit to get credit. There’s no way to improve this part of your score other than to wait. Logically, it makes sense for parents to establish a credit card in their child’s name just to get the ball rolling.

4. New credit (10% of total score): Applying for too much new credit in a short period of time is the most common and costly mistake most consumers make. While it counts for only 10% of your score, your score still drops when too many companies request your credit report in a short time. Note that if you request your own credit report (a “consumer-initiated inquiry”), it doesn’t count against you.

5. Types of credit (10% of total score): This category considers the overall mix of the credit you carry — installment loans, mortgages, revolving credit accounts, etc. Unfortunately, this category remains shrouded in mystery. Fair, Isaac won’t disclose how the various types of accounts are weighted.

 

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Credit bureaus give your score to lenders along with “reason codes” which explain why your score is what it is. Examine these reason codes; they’re the keys to improving your credit score.

Deciphering the Credit Report Code

With your credit report in hand, give it a thorough review. Check these items for timeliness and accuracy:

Check that all items included in the credit report are factually correct. If there are incorrect entries, notify the credit bureau in writing. Include copies (never originals) of documents that dispute the incorrect entries. Send the whole packet by certified mail to provide proof that the credit bureau received the information. They have 30 days from receipt to adjust or verify the incorrect data.

Check that all items are yours. If you have a name or Social Security number like someone else, it’s possible that his or her information will be attributed to you. Remember that even if that person’s credit is better than yours, you still have an obligation to correct the information.

Look for inactive accounts that remain open. Close any accounts you don’t use.

Check for late payments. Those from more than seven years ago can be removed from your record at your request.

Look over the list of your accounts and verify the numbers.

Verify correct address information and Social Security number.

How to Improve Your Score

First, pay your bills on time. Reduce outstanding debt, especially high-interest credit cards. Build up your savings.

Don’t fall for schemes that help you create a new credit identity. It’s illegal, and purveyors of these schemes incorrectly tell you that they’re invisible to creditors.

Wait to Buy Big Ticket Items Until you Buy Your Home

If you plan on purchasing a home wait until you buy it before buying big ticket items on credit because this can negatively affect your credit big time.

There is no quick fix to improving your credit; stay the course and you will see improvement.

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Antonio Ortega LLC Licensed Real Estate Professional

Text or Call 954-648-6095

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Loan Debt-to-income Ratios Explained

Read this article it will let you know if your numbers or ratios are right for getting a loan the better your ratios look the easier you’ll qualify for a loan I work with a Great Mortgage Broker / Lender more information at the end of this article.

When you’re ready to buy a house, a lot of jargon is thrown around. One term you’ll hear a lot is debt-to-income ratios. If you’re not a math wizard, such lingo can sound intimidating, but it doesn’t need to. Debt-to-income ratios are simple to figure and use to your advantage, even giving you the opportunity to figure out how much house you can afford before you even set out to look.

The debt-to-income ratio is, simply, the way that mortgage lenders decide how much money you can comfortably afford to borrow. It is the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts (not your monthly living expenses). Two calculations are involved, a front ratio and a back ratio, written in ratio form, i.e., 33/38.

The first number indicates the percentage of your monthly gross income used to pay housing costs, such as principal, interest, taxes, insurance, mortgage insurance and homeowners’ association dues. The second number indicates your monthly consumer debt, such as car payments, credit card debt, installment loans, etc. Other living expenses are not considered debt.

So, a debt-to-income ratio of 33/38 means that 33 percent of your monthly gross income is used to pay your monthly housing costs, and 5 percent of your monthly gross income is used to pay your consumer debt—so your housing costs plus your consumer debt equals 38 percent.

33/38 is a common guideline for debt-to-income ratios. Depending on your down payment and credit score, the guidelines can be looser or tighter, and guidelines also vary according to program. The FHA, for instance, requires no better than a 29/41 qualifying ratio, while the VA guidelines require no front ratio but a back ratio of 41.

What if you already have a house or don’t plan to buy a house for a good period? You still need to know and control your debt-to-income ratio, so you can avoid creeping indebtedness, or the gradual rising of debt. Impulse buying and routine use of credit cards for small, daily purchases can easily lead to unmanageable debt.

Debt-to-income ratio not only affects your ability to buy a home, but other purchases as well. Debt-to-income ratios are powerful indicators of creditworthiness and financial health. Know your ratio and keep it low. Your consumer-debt number should never go higher than 20 percent regardless. If you let it rise above 20 percent, you may:

Jeopardizes your ability to make major purchases—cars, homes, major appliances—when you need them.

Not get the lowest possible interest rates and best credit terms.

Have difficulty getting additional credit in emergencies.

If you keep a stranglehold on your spending habits and therefore your debt-to-income ratio, you can:

Make sound buying decisions, and refrain from frivolous credit purchases and loans.

See the clear benefits of making more-than-minimum credit card payments.

Avoid major credit problems.

Calculate your debt-to-income ratio before you begin looking for a house. Get your credit in order so you can get the best credit terms, the lowest interest rate and the most house possible.

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Stay Safe and Healthy

                   
        

Visit our Website:  www.SouthBrowardHomesbyTony.com

Antonio Ortega LLC Licensed Real Estate Professional

Text or Call 954-648-6095

Global Luxury Realty, LLC

Click Here to Contact Us

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