Newport RI Real Estate Blog - Jeff Brooks

Will Real Estate be Affected by the Government Shutdown?

The Government Shutdown may affect Real Estate over the coming weeks. Perhaps not market values, but existing transactions, and buyers looking to make offers.  Being a Realtor, I’m certainly not furloughed and neither are most other private sector jobs.  But in a community like Newport RI, it may end up affecting us more directly than we’d like.

Nearly 900,000 federal employees were told not to come into work on Tuesday.  That’s nearly a third of all persons being paid directly by the US.  These people include members of the DoD, National Parks, Memorial Administration, FHA and IRS.  Since 1975 there have been 17 government shutdowns, averaging nearly a week. Ranging from 1 to 21 days each.

How it Affects Newport County:

Here in Newport…

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Looking for that Rhode Island beach cottage? Some Helpful Tips to Find a Deal

Waterfront real estate in Newport County is as good as it gets for summer vacation homes.  For many buyers, however, sticker shock can get in the way.  Don’t lose hope!  Take a step back and consider the advantages of only a water view?  Walking distance to the beach is almost as good, right?  Or maybe you’re just looking for a place to get away.  Here are a few helpful tips to help in your search and get you into a life-enhancing beach home for less!

-Search a bit further from the beaches than you typically would

            Most “beach homes” are on the water or within a ¼ to ½ mile of the beach, but these are in high demand, making them much more expensive.  But if you search just a tad further you can find a much better deal and only have to…

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My view from the other side of the closing table

I am proud to announce I’m officially a homeowner. Finally!  I’ve been practicing real estate for nearly four years with the goal of purchasing my own
little slice of island paradise.  It was quite the experience for me to sit at the other end of the closing table; to sign that stack of papers, and feel what dozens of my buyers have undergone.  Here’s a bit about my experience:

 The Right Realtor

 I found the best realtor in town for me.  That was, of course, me, because I understand my needs and wants.  I wanted a multi family - 2 or 3 units, but at times I considered a single family I could turn around myself.  It can often be good to view products outside of your original needs and wants. This helped me realize my original decision for a two…

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Inventory and Economics. Experiencing the Lesson First Hand.

If the Real Estate catchphrase of 2012 was “interest rates” 2013 will be “inventory”.  So far it’s been a fantastic and frustrating 2013 for us realtors here in Newport, and per the media, we’re not alone.  Inventories nationally are at 13 year lows.  As I mentioned in a blog post back in November, inventory levels were continuing to decrease, pointing towards a renewed seller’s market.  Looking at charts here in Newport County the trend doesn’t seem to be changing.  

These charts make me think back to my Economics Classes at Saint Anselm College with Professor Romps, specifically about supply, demand and the “invisible hand”.  Prof. Romps was a 6’3” 280lb angry 65 year old man.  It was impossible to fall asleep in his class even at 9am on Friday. In…

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5 Ways the Fiscal Cliff has/will/may affect Your Real Estate Decisions

The ball at Time Square wasn't the only thing that dropped last night.  The US economy took a cliff dive thanks to our elected officials on Capital Hill.  The so-called “fiscal cliff” has been looming for months.  The Senate threw out a life line passing a Bill on New Year’s Day but the House must ratify the Bill before it is presented to The President. 

So we’re not there yet, but here’s an outline from the current Bill explaining how it affects your real estate and what it means for 2013:

1. CAPITAL GAINS

-Capital Gains and dividends rose from 15% to 20% depending on your tax bracket.  Please keep in mind, the exclusion of $250,000 for singles and $500,000 for married couples is still in place, so as long as you’ve owned your home for at least…

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Newport, RI Real Estate Market; Has it Turned? I think so.

I am about to make a bold statement about the Newport, RI real estate market – a statement that’s been made nearly every year since 2006. This time, however, the evidence is strong, sustained and hard to refute, so here it goes:

 Newport's residential real estate market has finally, officially, turned a corner.

 If you don’t believe me, consider these Newport and Aquidneck Island real estate metrics from RI’s Multiple Listing Service.

Iventory

The decrease in the number of homes on the market (the dark line) from fall 2011 to fall 2012 is startling!  Approximately 200 homes were on the market last fall versus 130 this fall! Down 35%. Take a look at this chart displaying 4 years of price vs.…

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203K Loans and buying RI Real Estate: 5 Things to Know

What is a 203K Loan?

An FHA 203k Loan is a rehab loan backed by the Federal Housing Authority. It allows home buyers to borrow to make repairs to a property after closing.

Why would I use a 203K Loan?

Typically for most conventional loan approvals the property has to be habitable and pass inspections.  Many times the seller can not fix problems that may arise such as furnace issues, old roof, peeling lead paint, non-functioning plumbing or electrical systems.  When these deficient conditions exist, a bank may deny a conventional loan application.  If you apply for a 203k Rehab Loan, however,  you may be able to borrow enough money to purchase the home AND make pre-approved repairs after closing.

How much can I borrow with a 203K?

A 203k…

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My new Housemate for the Week

This week I’ve been granted the amazing responsibility of watching my brother’s dog Finn while he and his family visit Arizona.  He’s a 6 month old Short Haired Wheaton Terrier.  I love dogs but I’ve never had the pleasure of owning one.  This week will be a nice trial to see if I could handle the responsibility and hopefully get one of my own!

Newport is a great city for dog lovers.  There are parks at nearly every corner, the Cliff Walk, downtown streets and beaches galore to entertain both you and your pup.  Many establishments in town have outdoor areas allowing you to enjoy everything Newport has to offer with your companion.  Just this past Sunday I had breakfast at Corner Café on Broadway with a friend.  Finn and I walked there from my house in…

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To Rent or To Buy Newport RI Home or Condo?

To Buy or To Rent? A tool to help you decide.

Many factors enter into the decision to rent or buy a RI home including the anticipated rate of appreciation, anticipated rent increases, your tax bracket and how long you expect to stay. If you're wrestling with this common real estate decision, take a look at this Rent vs Buy calculator. It's one of the best ones out there because it rolls every possible permutation into a tidy little graph and a one sentence conclusion.

So plug in your numbers, and see what's best for you. If it turns out that buying is the way to go... well, you know where to find me!

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Rhode Island Home Buyers, WHAT are You Waiting For?

It’s easy to feel negative about Rhode Island's real estate market when all you hear is bad news.  "Houses are not selling," "There are no buyers," "Banks won't lend," and "The economy is too weak for the housing market to improve."  Rhode Islanders need to look past the headlines and see the big picture. The greatest buying opportunity in our lifetimes, especially for first time home buyers and investors, is right now.  Here are a few reasons it’s an absolutely awesome time to buy:

Low Rates - Mortgage rates are at historic lows.  Two decades ago a 10% mortgage was a great deal.  In 2012, rates range from 3.75% - 4.5%.  Every .5% drop n a 30 year, $300,000 mortgage, puts $90 a month, $1,080 a year, or $32,400 over the life of the loan RIGHT IN YOUR…

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