Hoboken “Kiddie Condos” – Some Things to Consider When Parents Invest with Their Children

More and more buyers are teaming up with Mom and Dad to help alleviate some of the challenges of buying a condo in today’s market.

(Where were you, Mom and Dad, when I was buying my first home?…)

Mortgage pro Ted Schirm with Investors Savings Bank states, “Securing financing for a Hoboken condo has become more challenging since banks have tightened their lending standards. Additionally, when parents are investing with or for their children and wish to obtain the best mortgage rates, many lenders are seeking substantial down payments, typically 25% of the purchase price or more.”

“Kiddie Condos – The terminology, used when a parent, a very generous parent, buys or invests in a condo for their college-bound student, can offer problems when trying to get attractive financing for these transactions.”

These inclulde:

• The property cannot be considered a second home.
• Investment Propety down-payment requirements are more substantial than what was planned.
• The parents don’t want to pay investment property mortgage rates.
• The college student has no income and cannot be put on the mortgage.

“Our Kiddie Condo” Financing program allows us to do the following:

• Provide financing as an owner-occupied property
• Put as little as 20 percent down
• Have the child put on the mortgage to help build a credit history

Mr. Schirm goes on to say, “You should note that this program works for any situation where a non-occupant co-borrower is needed to boost income.”

To minimize the potential of a tax occurrence, parents and children should also seek advice from their tax professional as to how to best structure loans or gifts for real estate purposes.

Having the right team in place and asking the right questions can help you and your parents achieve maximum results from your mutual investment.

Now go call Mom and Dad and tell them how much you love them!

About Eddie: Eddie Perez is a resident of Hoboken and works as a New Jersey licensed Broker – REALTOR . His goal is to educate both buyers and sellers so that they can make the most of their bottom line while saving time and having fun during the process of buying or selling condominiums and brownstones in Hoboken and the surrounding metro communities including Jersey City and Weehawken, New Jersey. He has personally sold over 135 homes and is among the top-producing agents in Hudson County. You can email questions to eddie@InvestHoboken.com. To schedule an appointment to meet with Eddie, call him direct at 201.344.2886.

Find Your Dream Condo In Hoboken

It can be overwhelming when you look at all the condos for sale in Hoboken and it may leave you wondering how you will know which one is the right one for you. To help you find your dream home it is first ideal to come up with a wish list to help you with your search.

1. How Much Work Do You Want To Do? Determine if you want to purchase a home that is a fixer-upper or one that is move-in ready. Homes that need a little work done on them tend to be priced a great deal less than those homes that are move-in ready. Take the time to consider what homeownership means to you.

2. Location! Location! Location! When it all comes down to where you live in Hoboken, it needs to be the right location for you and your life style. The closer in proximity you are to public transit the more likely the home is to be more expensive. The great thing about Hoboken is it is one of the most walkable cities in America!

3. Local School District. The quality of education among both public and private schools vary widely across the country and also plays a big part when it comes to choosing where to live. Take the time to research the school district before choosing a place to live.

4. What Style Of Condo Is Right For You? Is a balcony or roof deck something that you are looking for in your new home or would you consider living without either? These are things to think about before you start you search for your dream home.

5. Bells And Whistles. Does that beautiful granite countertop stand out at you or does marble catch your eye? Make a list of what upgrades you would like to see in your future home.

6. What’s Your Style? The interior style of any home can be changed but it could come with a costly price tag. Decide what things are important to you inside your home and this will help with the home search.

7. Be Realistic About Outdoor Space. A home with a yard in Hoboken is a rare find. It may be more realistic to consider a nice balcony or roof deck. If a yard is something that you really want, you may consider purchasing a Brownstone or a Row House.

8. How Old? What age of home are you looking for? Old homes are unique but often times require more maintenance that can be costly to you. Newer homes are by no means maintenance free but may come with a warranty from the builder.

9. A Garage Is Not Likely. City living comes with many perks but many times, having a garage is not one of those perks. You will be hard pressed to find that perfect home with a garage while living in the city.

10. Condo Life. There are many choices available to you when it comes to owning a condo in Hoboken. Finding the right one for you can be easy with a little thought ahead of time of what you are looking for in your new home.

If owning a new condo in Hoboken is on your dream list, contact me, Eddie Perez of ReMax Gold Coast Realty. You can reach me directly at (201) 344-2886 or check out my InvestHoboken website.

Amazing Benefits Of Home Ownership In Hoboken

Owning a home has been an American Dream for as long as anyone can remember, and even during the past few years when the economy has been down, it has still been part of the American Dream. In fact, 67% of homes in America are owner-occupied. According to the National Association of Realtors, there are many benefits to homeownership in Hoboken.
● It is a fact those who are homeowners are happier and healthier than those that are not. Also, homeowners have more of a feeling of control over their own lives.
● The homeowners of America pay 80% to 90% of federal income taxes. These taxes help to contribute to numerous federal programs which benefit everyone in America.
● Those who rent can expect to see, on average, an increase of 3% on their monthly rent each year. Homeowners have the benefit of fixed rate mortgage loans and enjoy a steady monthly payment for the term of their loans.
● Another known benefit of homeownership is that children of homeowners are more apt to participate in organized activities which means less time being couch potatoes.
● Homeowners tend to be more involved with volunteering and contribute more to their neighborhoods.
● Moving can be a lot of work and those that rent, tend to move more frequently than those who own their own home. The stability achieved by homeowners not frequently moving, will help reduce crime and do their part to help with the overall upkeep of the neighborhood.
● Maybe the best reason for homeownership is that children of those who own their own home do well in school and stay in school longer than children of those who rent.

Home ownership in Hoboken is also doing its part to help the economy. The housing industry makes up 15 % of the Gross Domestic Product in the United States. Every home purchased in the U.S. adds on average $60,000 to the economy throughout time by the means of home improvements and furniture purchases.

If you are looking to enjoy the benefits of homeownership in the Hoboken area contact me, Eddie Perez of ReMax Gold Coast Realty. You can reach me directly at (201) 344-2886 or check out my InvestHoboken website.

Designer Bathroom Vanities That Anyone Can Have In Their Hoboken Home

Are you an HGTV or DIY fanatic? If so, you have probably seen those episodes where they find an old cabinet at a flea market and turn it into a beautiful designer bathroom vanity or chest. If you are not familiar with this practice, it is easier than you think to recreate this look without having to pay those designer prices. You too can have those designer quality pieces you have seen in magazines and thought you could never afford in your Hoboken home for an affordable price.
To start the process, you want to scour local flea markets and antique sales for just the right piece of furniture that will work in the area of your home you plan to place it in. An old dresser, large nightstand, dressing table, or desks are all pieces of furniture that are used frequently. It is important before you buy your treasured find to measure the space that you plan to put it in so that you do not get it back and home and it does not fit.

Once you bring your find home, you want to examine the way it was constructed in detail. Is it held together with screws or wooden blocks? Things like this are what you will want to look for. If your purpose is to use it as a bathroom vanity, you want to carefully remove the top of it intact as this will make a great template for your new top. Next, cut a hole in the place on the back where the plumbing will go. Finally, level and shim your new piece into place until it is level. You want to be sure your new vanity is secure to the wall by screwing it into the studs on the wall.Choose a top to place on the vanity that will match your Hoboken home such as granite, marble or Corian. Do not forget to pick up a new sink to go with your new top.

If you are looking to buy or sell a home in the Hoboken area, contact me, Eddie Perez of ReMax Gold Coast Realty. You can reach me directly at (201) 344-2886 or check out my InvestHoboken website.

New Jersey Chief Justice Takes Robo-Signing Seriously

New Jersey Chief Justice Stuart Rabner aims to protect Hoboken residents and all of New Jersey. Questionable foreclosure filings across the nation have New Jersey’s Chief Justice Stuart Rabner, working to establish a set of initiatives to combat this in New Jersey. He is concerned with the increased number of foreclosure filings, and that there may be incorrect applications. He said, “It is important the judiciary system ensures that judges are not rubber-stamping questionable documents that may not be reliable.”

The term “robo-signing” has been extremely popular lately; especially with the brief foreclosure halt we saw last fall. Robo-signing is when mortgage lenders and other service employees sign hundreds and thousands of affidavits that are then submitted in support of foreclosure claims. Many of those employees sign without having any knowledge of the information in the paper they just signed.

In 2010 there was over 65,000 applications filed throughout the state of New Jersey, which is up from the nearly 22,000 only four years ago. In December, Chief Justice Stuart Rabner ordered six large mortgage lenders to file documents to the court that provide their internal foreclosure application process to ensure they are up to standards. These documents were due to the court by January 19th, 2011. New Jersey is not the only state to take these measures New York has also done the same.

If you are considering purchasing one of these homes, it is important to contact a local Realtor(R) such as myself, Eddie Perez of ReMax Gold Coast Realty, to gain more information on how to protect yourself. You can reach me directly at 201.344.2886 or check out my InvestHoboken website.

Bike Hoboken

Calling all Hoboken Bikers! Spring is here and it is time to get your bike ready for the upcoming warm weather. If you haven’t heard already, there is a great citizen-based advocacy organization called Bike Hoboken, that was developed to make Hoboken streets safer for bikers. Bike Hoboken will be holding its first formal meeting on Wednesday, February 23, at 8 p.m. at Carpe Diem located at 14th and Grand Streets.

At the top of the agenda of the meeting will be the group’s list of goals and recent accomplishments for 2011. Topics will include, the subject of more bike racks and riding lanes as well as more group rides.

The group is also hoping to recruit new members to give a hand with carrying out the group’s goals.

According to Josh Meyers, a group member, states, “Although Hoboken is a small town, the task of turning it into one of the most bike-friendly towns in America is no small endeavor.”

For help with understanding the mortgage market, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

It’s Time To Pack

Following are organization tips to make the process of packing as efficient as possible:

If you create a system of organization for tracking your belongings it will make your unpacking time much easier. Label each box with a number and put together a list itemizing what is in each labeled box.

Make an attempt of get rid of any unneeded items prior to moving day. Also, try to keep items from one room together. When you start unpacking in your new home your goal will be to empty the boxes as quickly as possible so you will not have to be moving boxes from room to room. It’s a good idea to keep items that you may need immediately in a duffle bag since it will be easy to find among all of the boxes.

At the very start of packing you should have more boxes available than you feel you will need. If boxes are purchased from a moving company, you can always return unused boxes for a refund. Keep a surplus of ten boxes for last minute items.

To prevent fragile items from breaking, it’s a good idea to limit the amount of empty space in a box by wrapping newspaper paper around each item and use crumpled paper in the spaces in between.

For help in finding and closing on your perfect Hoboken home, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

 

 

Don’t Miss Hoboken’s Hospitality Week

Mark your calendars for  Tuesday, November 30th and Wednesday, December 1st. Those are the two days out of the year that nearly fifty of Hoboken’s most popular merchants will be hosting the third annual “Hoboken Hospitality Week”

This special two-day event is organized to encourage the Hoboken community to come on out and shop to support the Hoboken economy.  This also is a great opportunity to socialize with you neighbors and enjoy special events and promotions.

• On Tuesday 11/30: The “uptown” stores of Hoboken will be featured
• On Wednesday 12/1: Hoboken’s “downtown” establishments will be the focus

During the hours of  6-10pm each day, various businesses will be promoting their own unique celebration with music, refreshments, discounts, giveaways, etc.

This sounds like a lot of fun, so don’t miss out on this special yearly event.

For help in finding and closing on your perfect Hoboken home, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

 

Is Now a Good Time to Buy a Hoboken Condo?

Is now a good time to buy a Hoboken condo?

I’ve found twenty nine 2 bedroom, 2 bathroom homes currently for sale in Hoboken that are priced $450,000 and under with the lowest price condo at $250,000.

AND…….today the Federal Home Loan Mortgage Corporation know as Freddie Mac said that 30 year fixed loans fell to their lowest level since 1971! The average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week.

So is this a good time to buy your first or move up Hoboken condo?

Edward (Eddie) Perez

October 2010 Hoboken Condo Sales Statistics

Here are the final sales figures for October 2010 compiled using the Hudson County Multiple Listing Service.

How’s the real estate market in Hoboken?  I’m often asked this question.  My answer.. “that depends if you’re a buyer, seller, renter or investor!”

In the October 2010 condo statistics, signed contracts for Hoboken condos were down 45.8% compared with same month in 2009.   46 contracts were signed last month compared with 85 during the same period last year.  Not welcoming news if you’re a seller!

Now on the flip side, a buyer might embrace this news with open arms!  Buyers face an improved affordability environment with average closed sales prices off 9% to $441,408 in October 2010 from $485,190 just a year ago.  Interest rates also remain at historic lows with 30 year fixed rates showing at 4.25% at BankRate.com.

We have reasonable activity with value being the name of the game.  I’ve been working on finding great opportunities for first-time home buyers who feel that now is a good time to get off of the sidelines.  I’ve also been working with investors looking to get a better return on their equity by investing in Hoboken area condos, short sales and 2-4 family homes instead of letting their money sit in the bank or even investing in real estate in their home countries.

On the selling side, I’ve been marketing properties for sellers that are trading up to larger homes that better fit their lifestyle and family needs.  While they may not be getting as much equity as they might have 4 years ago, they are more than making up for it on their buying side.

I’ve also begun to see more and more short sales and foreclosures in Hoboken and throughout Hudson County.  If you or someone you know is facing foreclosure, I’ve put together a comprehensive resource with options available.

ForeclosuresHudsonCounty.com

Pass this along to anyone you know who may be in this situation:

So how’s the market?  Here are the comparisons:

	October 2009	October 2010	Comparison:
Units Sold:	80	49	38.7%
Avg. Price:	$485,190	$441,408	– 9%
Median Price:	$472,500	$405,000	– 14.2%
Pending:	85	46	-45.8

October 2010 Sold Condominiums:

High Low Average Median Total Price Listing Count List Price: $939,,000 $209,600 $459,823 $419,000 $22,531,344 49 Sold Price: $875,000 $185,000 $441,408 $405,000 $21,628,995 DOM: 537 8 84 63

Studio: 4 sold

Average asking price: $329,648

Selling Price: $318,873 (-3.3% of asking price)

Average days on market: 226

Median days on market: 164

1 bedroom: 14 sold

Average asking price: $352,544

Average selling price: $334,750 (-5.0% of asking price)

Average days on market: 97

Median days on market: 78

2 bedroom: 24 sold.

Average asking price: $479,168

Average selling price: $462,166  (-3.5% of asking price)

Average days on market: 59

Median days on market: 50

3 bedroom: 7 sold.

Average asking price: $682,438

Average selling price: $653,571  (-4.2% of asking price)

Average days on market: 60

Median days on market: 43

4 bedroom: no sales

October 2010 – Pending Contracts.  These are the deals that were consummated during the month and represents the current buying activity.

Pending Condos: 80

High Low Average Median Total Price   Amount Listing Count List Price: $1,679,995 $219,000 $526,889 $464,000 $24,236,927 46 Sold Price: pending pending pending pending pending DOM: 588 22 92 59

Here’s the breakdown:

Studio: 0 contracts.

1 bedroom: 16 contracts.

Average asking price: $380,118

Median price: $389,000

Average days on market: 94

Median days on market: 81

2 bedroom: 26 contracts

Average asking price: $580,308

Median price: $497,000

Average days on market: 74

Median days on market: 80

3 bedroom: 3 contracts.

Average asking price: $732,666

Median price: $699,000

Average days on market: 114

Median days on market: 101

4 bedroom: 1 contract 62 Jefferson St Unit B; Listed at $869,000  18 Days of market

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Edward (Eddie) Perez