South Charlotte Real Estate Bargains

Many people are seeking a deeply discounted home in South Charlotte. It helps to understand the growth around Charlotte and then you can better relate to what is really a good deal. The growth of south Charlotte is an important factor to consider.

Charlotte Real Estate always maintained a steady and sustainable growth and appreciation rate. In 2005 the national stage changed the real estate market forever. Yes, forever is a long time but let me explain. In 2005 the hurricanes devastated the Gulf States and especially Florida. There were thousands of people relocating to Florida every year and the growth was accelerating. The baby boomers were retiring. Florida had affordable housing, lower taxes and warmer weather. Then 2005 happened.

As the repercussions of the hurricanes took hold, the Florida property taxes skyrocketed. All of the damage sustained created a huge tax short fall. The public demanded things repaired and in working order. Who do you think pays for all of those building, parks and Government paid amenities? Thank-you tax payers. The Government went to their fund sourcing (home owners) and took the money they needed/wanted. Now that 2005 happened do you think the Government will ever be caught that unprepared again? Do you think they will just lower the taxes only to face another crisis in the future? Not likely.

Home Owner Insurance also was devastated. Insurance companies had to increase all of their premiums to pay out all of the claims. The insurance company had to change their calculations so that they will be prepared when the dramatic hurricane season reoccurs.

The HOA's also took a beating. Landscaping, roads, pools and so much more was devastated. Did they have the reserves for repair? Where do they get their funding? Now that they have built up their reserves, do you think they will reduce the HOA or just spend the money they have?

Now back to the South Charlotte story. South Charlotte was already almost completely built up by 2005. Very few new homes were built in South Charlotte from 2005 to 2008. There was no land left! Yes, Stone Creek Ranch was being built but that was the last mega development in South Charlotte.

The Hurricanes redirected the public from Florida to Charlotte North Carolina. This influx was from the north (greater New York area) and the South (Florida). Charlotte NC housing prices experienced great demand and builders could not build homes fast enough. South Charlotte was already very popular but without new housing there was not too much influx of new people. The South Charlotte Real Estate market was not flooded with new NC Residents. Our property values did surge (more demand than supply) but only a small fraction of people purchased South Charlotte Homes at this time (once again, no supply).

When the economy took a down turn, prices did drop but most of South Charlotte was not involved or overly committed to their mortgage. As a result, South Charlotte NC Homes for Sale largely maintained their value and there are not too many steals out there. But what really is a steal. Is a steal when no one wants the home and you get it at a deep discount? What do you think will be your rate of return in 3 years? How about if you purchase a South Charlotte Home at a 10% discount. Where will you be better off in three years?

Think about your investment and ask more about our market. Appreciation should be based on solid fundamentals. Visit Charlotte Real Estate Charlotte NC Homes For Sale for additional information about Charlotte Property.

Charlotte Homes for Sale - Mortgage Issues

There is one looming factor that is on the horizon that needs to be considered. Many people purchased homes with 80/20 mortgages. An 80/20 mortgage is when you purchase a home with a 80% first mortgage and a 20% 2nd mortgage. The 2nd mortgages were at a higher interest rate and many were adjustable rate mortgages (AKA Arms). The plans were for home owners to refinance the 2 mortgage in a few years before the interest rates adjust. Then the market changed!

Lenders/investors will no longer finance the 20% 2nd mortgages. Many new home buyers will be stuck with their ARMs. This means many ARMs will adjust upward and your monthly payments may become out of reach. You can hope for some appreciation and then perhaps get a new 2nd mortgage for 10%.

I strongly recommend paying additional principle now to your 2nd mortgage so that you can refinance your home later or at least be in a financially secure place in the near future. To learn more about the Charlotte Real Estate market including questions about your mortgage contact Rick Waite @ 704.770.6559 or visit my websites at Charlotte NC Real Estate today.

Charlotte NC Homes For Sale - Are Banks Making Loans?

People continue to ask if banks started making home loans. This is an amazing question since they never stopped making home loans. Yes, they are actually using financial criteria before making loans but if you are credit worthy, you can get a loan.

Banks have returned to the rules or 10+ years ago. Loans are readily available with 10% down payments or greater. There are FHA loans with 3.5% down payment but FHA loans entail more red tape and higher lending fees.

I actually just sold a home and this week and they locked in a rate under 5%. If you have bad credit, you will not get a loan. The problem is people with bad credit feel entitled to loans. There are simply no investors dumb enough to "donate their hard earned savings" for high risk mortgages.

The hope of those with poor credit is for the Government to blackmail or extort financial institutions to repeat the same mistakes over again. Our hope is the Government will actually help. How about providing education for borrowers so that they have the opportunity to improve their credit and eventually they can qualify for a mortgage by earning it?

Mortgage companies/lenders lend money, package the mortgages and then sell them on the secondary markets. The secondary markets are investors. Investors have learned that the high risk home loans are "junk" and will not purchase them. If the banks decide to make these high risk loans, the assets of the bank would rapidly be tied up for many years since no one will purchase the paper. Banks do not have enough reserves to actually hold onto all of those mortgage notes.

In addition they have learned they can not afford the high rate of default of the sub prime borrowers. There are concerns with purchasing a primary residence out-of-state without a job or income in this state. Many investors/speculators were doing this. These investors/borrowers had a huge rate of default. Either the speculators were hoping for a quick buck or the home owner could not find the job they had hoped.

Income verification is now essential to getting a loan (and the income must be transferable to your new place of residence). Many defaulted loans were because of people relocating "and hoping to find a similar job". Mortgage companies were making loans to these people and now have learned the foolishness of this plan. You need to have an actual documented income to assure you can actually payback the loan. Sounds obvious, no?

Banks and Mortgage companies are still in business. Their business is to safeguard our deposits and lend out our money responsibly. They are actually running their institutions responsibly. This is the way it should have been all along. Home ownership is the American Dream but it is the result of responsibility and hard work. The American Dream is reality but it is not a gift based on the sweat and sacrifice of another.

Charlotte Real Estate offers a multitude of opportunities. Your American Dream awaits.