Comment

Comment by Sharon Driscoll on August 6, 2010 at 2:01pm

IS AMERICAN SOIL IN THE FUTURE GOING TO BELONG TO AMERICANS?
AMERICANS CAN'T AFFORD A HOME, BUT WE'LL SELL OUR COUNTRY TO FOREIGNERS?
THE QUESTION HAS BEEN ASKED-"WILL AMERICANS ONLY BE ABLE TO RENT IN THE FUTURE OR OWN?"

Low U.S. home prices, high loonie make it a good time to be a Canadian snowbird
TORONTO – Aug. 6, 2010 – Mary and Ron Ethier long believed a getaway home in the Florida sun would remain a retirement dream, but when a recent real estate turnaround opened the border to a growing flock of snowbirds, the couple suddenly saw an opportunity too tempting to pass up.

“We just felt with the prices that were happening down there, that it was out of our reach financially,” said Mary Ethier from her home in Pembroke, Ont. “But when their real estate market basically took a big hit and the Canadian dollar came up, we thought if we’re ever going to do it, now’s the time to get off our butts and go and do it.”

The couple, too busy with their lawn-care franchise to enjoy Ontario summers, toured homes in the Fort Myers, Fla., area in the fall of 2007 and made a lowball offer, expecting to negotiate, but instead found their deal accepted.

By January, they owned a condo in a gated community, a property foreclosed upon when the U.S. housing bubble burst and home prices began to plummet and many American homeowners realized they could no longer pay their mortgages.

The loonie has since risen to hover around parity while U.S. home prices have stagnated, creating new financial incentives for Canadians to act fast and scoop up American real estate deals.

“It’s a once in a lifetime opportunity for Canadians,” says Mark Dziedzic, a Canadian Realtor with Cross Border Realty and a snowbird himself.

The Sun Belt states of Texas, Arizona, California and Florida are favorites, while there are also deals to be had in Nevada and Georgia. The average price of a home in Phoenix, Ariz., is US$144,600, compared to $432,253 in Toronto.

“People are buying $40,000 to $50,000 condos in Phoenix right now. Condos (in Toronto) are selling for $400,000 to $500,000,” Dziedzic said. Taxes, condo fees and closing costs are also generally less expensive in the U.S., he added.

Prices in most U.S. regions have steadied after falling for three years, but a high number of foreclosures persist, lowering prices, especially in Florida and Nevada, said Bank of Montreal mortgage specialist Laura Parsons.

“This is the time to buy if you’re going to,” she said.

“I think you’ve got to look at this as a long-term investment because you’re getting such a deal. You’re going to have to hang on to it for a while,” and ride out any further downturns before the market picks up again, she said.

There is a fine balance between rushing to buy and waiting for lower prices. Economists predict the U.S. housing market will remain soft, but it’s futile to make decisions based on where a currency or a housing market is going.

“I don’t think you need to rush down and get a place, but the good stuff in the lower price range ... those are moving. The good ones come up and they’re sold,” Dziedzic said.

Buying real estate in the U.S. is becoming easier for Canadians as more snowbirds snap up getaway homes. But experts caution that the buying process, which takes about three to four months, is a different beast.

© The Canadian Press 2010




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Comment by Sharon Driscoll on August 6, 2010 at 1:48pm

Senate approves higher gov’t mortgage fees
WASHINGTON (AP) – Aug. 6, 2010 – Higher monthly fees are coming for consumers who take out home loans guaranteed by the Federal Housing Administration, the primary source of mortgages for first-time homebuyers.

The Senate late Wednesday unanimously approved legislation giving the FHA the power to hike monthly premiums it charges to consumers. The measure now goes to President Barack Obama, who is expected to sign it.

The new law would affect new loans and not ones that already have been made.

Officials say the agency needs the authority to stabilize its finances, which have deteriorated because of the foreclosure crisis. The fees are projected to bring in an extra $3.6 billion per year, according to the FHA.

The agency does not make loans, but offers insurance against default.

People who take out FHA-backed loans pay a smaller downpayment, as low as 3.5 percent of the home price. But they are subject to two additional fees – one at the start of the loan and an annual fee. Both fees are typically spread out in monthly installments over the life of the loan.

Borrowers who take out loans through FHA pay an annual fee of 0.55 percent of the total loan. FHA officials expect to raise that to 0.9 percent, though the bill would give them the power to hike it as high as 1.55 percent.

Earlier this year, the FHA raised the upfront fee to 2.25 percent of the total mortgage amount from 1.75 percent. Agency officials want to lower that to 1 percent.

The combined impact of lowering the upfront fee and raising the monthly fee would mean a borrower taking out a mortgage of $170,000 at an interest rate of 5 percent would pay an extra $38 a month.

Copyright © 2010 The Associated Press, Alan Zibel, AP real estate writer.

Comment by James DeWulf on August 6, 2010 at 7:37am

I attended the Allen Boyd (D – Congressional District 2 Representative) Town Hall Meeting yesterday in Mayo, FL. It started out to be a "vote for me" meeting instead of a Town Hall meeting with a 15 minute dissertation by Boyd about the upcoming primary elections and who is running against him for his seat in Congress. But mostly Conservatives were in attendance so it turned into a Health Care debate. After about an hour of him telling us we didn't have a clue what we were talking about because we hadn’t read the bill, he stopped the meeting. He said he would schedule another meeting in September after we had all read the bill for ourselves so we could discuss it with knowledge of it equal to his. Oh by the way, he hasn’t read it either, but one fellow with him said he had read it and was Boyd’s advisor on the bill. At that point, the meeting was over and the small crowd of 15 people left.

Comment by Margaret Burrow on August 6, 2010 at 7:34am

Thank you for being there for all of us who cannot be there! We appreciate all you are doing.

Comment by Dennis J. Fleming on August 6, 2010 at 7:02am

We must not weaken. If we are to sustain this nation and past it on to the next generation we must remain vigilant and active. Never again can we assume our elected officials will act in the best interest of our country. They must become aware we are watching and do not like what we see.

Perhaps they will hear us if 3 million attend the "TEA Party" in DC September 12. It may be the most important actions many of us will take in the name of our children and their children.

Thank you Billie. You are appreciated.