Judy Kay\'s Blog

Renters CAN become Buyers

judykay — Wed, 12 Nov 2008 22:43:54 +0000

All of a sudden the phones have been ringing off the hook with people calling from my for sale signs. But they don’t want to buy the house, they want to rent it. This is the state of affairs in real estate now – the demand for good rental housing is increasing and so are the rates.

Tenants need to remember, though, that landlords care still fairly strict about checking tenants’ credit, and tenants need to come up with first month’s rent and security deposit, which is usually equal to the first month’s rent.

For a $1,000 per month rental, the buyer has to come up with $2,000 and spend $40 for a credit check. Why not just see if the tenant could be a potential buyer? Their credit is being pulled, they have $2,000 for a down-payment and they are willing to pay $1,000 per month.

With an FHA program, a $2,000 downpayment equates to a 3% downpayment on a $70,000 house and many tenants have access to even more cash to purchase a more expensive house. The monthly mortgage including taxes and insurance on a $70,000 house is usually about $700 per month, saving the purchaser $300 per month over what they were going to spend on a rental.

Of course, they have to get qualified, but first time home buyers need to start thinking “home owner” more than “renter” and most applicants have better credit than they think. Even if they cannot purchase a house now, they can get into a good credit repair program so that in 6 months or so they can feasibly start looking to purchase when their lease expires.

With low prices on houses, low interest rates, availability of good affordable housing, tax advantages – it’s worth checking to see if you have a potential buyer from that tenant call.

Judy Kay is a Realtor in Sugar Land and Southwest Houston and can be reached at (281) 733-8194. Email judy.kay@hotmail.com for more information and her website is www.judyhyltonkay.com.

SHIFT Happens!

judykay — Thu, 30 Oct 2008 15:58:04 +0000

Fort Bend county has had the largest number of foreclosures in the Texas Market. This is because Fort Bend was the fastest growing county in the U.S for several years and many buyers took advantage of the low interest rates and available credit.

For first time home buyers and investors, this is the best time for you to purchase if you have decent credit and a job. Low interest rates, low prices, tax benefits for first time home buyers - and this will not last through 2009.

Missouri City tops the list, followed by other cities such as Richmond, Rosenberg, Fresno and Sugar Land.

For more information on available homes and how to sell in this SHIFTing market, contact Judy Kay at (281) 733-8194 and visit my website.

Welcome to Judy Kay’s Blog!

judykay — Thu, 30 Oct 2008 14:41:50 +0000

Welcome to Judy Kay’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in sugar land.