The Web frontier for vacation-home owners is vast and continuing to grow as they tap into new resources to market their properties. And networking Web sites can offer a support network for owners navigating the apparently bump-filled rental market. “Making a video is so much better than trying to put all that into words.” Mr. Gilbert has two videos, both on YouTube and Google Video: One showcases the house and some of its features, like the brand of mattresses in the home. The other focuses on the community, Bear Trap Dunes, which has three golf courses and two swimming pools.

Any vacation-home owner is likely to confess that marketing the house to renters is only half the battle. And, perhaps the easy half, once you read through the postings on Lay my Hat (www.laymyhat.com). The site allows vacation homeowners to hash out the apparently neverending string of problems that arise when renting out their second home. Owners vent about problem guests, like those who complain about the lack of ketchup and mayonnaise in the refrigerator or refuse to obey the no smoking policies. Some get advice on larger issues, like what to do when an hour before a renter arrives the electricity in the house fails. The solution, wrote one poster, is to light candles and “gets lots of drinks” for the guests. (more…)

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The growing influence of home inspections on residential real estate sales has been rapid and unmistakable. Inspections were available in the 1970s and ’80s but were relatively unknown to most people during those years. By the early 1990s, home inspectors emerged as a significant presence in most real estate transactions, affecting the majority of purchases. Two reasons stand out as the basis for this surprising rate of growth:

Accompanying the growth of home inspection services has been a parallel increase in liability claims against inspectors. Two circumstances stand out as primary causes for these claims: 1. Some claims are clearly due to inspector negligence. A contributing cause has been the rapid growth of the industry, prompting an influx of inexperienced and unqualified inspectors. The result has been incomplete or incorrect reporting of property conditions; hence, claims. 2. Many claims, on the other hand, are frivolous, owing again to the litigious nature of the business environment. While unqualified inspectors are subject to claims due to incompetence, even the best inspectors may be targeted, regardless of whether they are truly at fault. (more…)

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If one of your goals in 2007 is to become a landlord by buying a house, condo, or even small apartment complex, the first thing you should do, if you haven’t already, is begin to educate yourself about becoming a landlord. If you’re already a landlord then you likely know that ongoing education in this ever-changing industry is a must.

Here are some areas that landlords should be certain to record: mileage to and from the rental property, advertising for the property, cell phone use, computer equipment and office supplies, desk equipment, telephone line (if you have a separate line the office line can be fully deducted), Internet access, and house cleaning for the rental. “If you have a cleaning company come in to clean your rental unit, after somebody moves out, those costs are deductible. If you need to buy office supplies it might be computer paper, pens and printer cartridges, postage if you’re mailing out reminders [to] somebody [who] might be mailing the rent late or you need to send somebody a lease to sign — [all are] also deductible. Working with a qualified tax person can help you discover any deductions you might be missing and also make sure that you are operating by the appropriate IRS laws. (more…)

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An elderly homeowner who wishes to continue living at home can get access to money that doesn’t have to be repaid until he or she sells the house or dies. The upfront costs of the reverse mortgage loans are high, and they are not recommended for those planning to sell their house in the near future. Paiva’s closing costs were $13,325, which included a payment of $5,760 for mortgage insurance from the U.S. Department of Housing and Urban Development’s Federal Housing Administration. FHA insures an estimated 90 percent of reverse-mortgage loans issued in the United States. Most borrowers roll over the loan costs into their balance to keep their initial outlay of cash to a minimum.

To be eligible for a HUD-insured reverse mortgage, borrowers must be at least 62 years old. The amount that can be loaned depends on the borrower’s age, the amount of equity, and the interest rates. Loans insured by the government cannot exceed a certain limit currently $362,000, according to Peter Bell, president of the National Mortgage Lenders Association, even if the value of the house is much higher. Uninsured loans are offered at higher amounts, and at higher costs. In the fiscal year that ended September 30, 2006, 76,351 federally insured reverse mortgages, also known as home-equity conversion mortgages, were issued, up 77% from the previous fiscal year, White said. In Rhode Island, the number of reverse mortgages increased from 198 to 338. As the baby-boom generation begins to retire, the numbers are expected to grow. (more…)

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At risk of oversimplifying, credit standards in the conventional market range from A+ to D-, and within that range, FHA would be about B- or C+. FHA credit requirements overlap the higher levels of subprime requirements. A good illustration is the underwriting rules applicable to a prior foreclosure. With exceptions, FHA won’t accept a loan applicant who has had a foreclosure within the prior three years. Subprime lenders may have a three-year rule for their best credit grade, but the period scales down by degrees and might be only one year for the lowest grade.

Similarly, the maximum ratio of total debt service to income acceptable to FHA is 41 percent, which is generally high relative to prime standards, but well below what passes in the nonprime sector. A borrower who meets FHA credit standards will usually do better with an FHA loan than with a subprime loan, despite having to pay a mortgage insurance premium. The rate will be lower, the borrower will have access to a large menu of mortgages, and there are no prepayment penalties. Most mortgages in the subprime market are 2-year adjustables with large margins, which means a high probability of a rate increase after two years, and they have prepayment penalties, usually for three years. (more…)

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U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said Wednesday. “American workers are really not gaining ground and they’re so far behind in the first place,” said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study. While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.

Other ways families cope with high housing expenses is to work longer hours or extra jobs, or by crowding in more income producers, she said. An October 2006 survey by the group found families who seek to buy less-expensive homes in further-out suburbs - adding to urban sprawl - pay so much more for transit that it eliminates the savings. While home prices range widely across the country, wages for low-wage jobs - from teachers to janitors - are about the same no matter where they are located, Lipman said. The report cited housing aid programs offered by some big-city hospitals that have plenty of modestly-paid workers. (more…)

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Women are the CPOs (Chief Buying Officers) of American households, and are rapidly gaining in gender status as the nation’s top wealth holders. According to Tom Peters and other experts monitoring the American marketplace, women now make 83 percent of all consumer buys, including 94 percent of home products, 89 percent of vacations, and 75 percent of all decisions regarding the purchase of the largest investment most of us will ever make — a house.

As women have increased their earnings, built their own businesses, weathered divorces, widowhood, and taken charge of family bequests, they’ve grown more independent and wealthy. IRS data indicates women comprise 39 percent of the top wealth holders in the U.S., a category defined as adults with total assets of $625,000 or more. That adds up to some 2.5 million women with combined assets of $4.2 trillion. Significantly, 42 percent of the women in this group will be single or widowed, according to the IRS, by the year 2050. (more…)

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