As many homeowners and future move up buyers contemplate the state of the housing industry, I wanted to let everyone know that there are sound real estate investments to be made, even in today’s economy.

Today, I will blog about the Memorial Villages     in Houston, Texas.    The Memorial Villages include the cities of Hedwig Village   , Piney Point Village  ,Hunters Creek Village, and Bunker Hill Village  which are South of I10 and Spring Valley Village and Hilshire Village which are North of I10.  For the sake of today’s blog, I will focus on the villages South of I 10. 

Once occupied primarily by German farmers, today the residents of The Memorial Villages comprise one of the wealthiest communities in all of Texas.  In 2008, Forbes.com selected Bunker Hill and Hunters Creek Village as one of the top three areas to live well in Houston.  People flocked here in the 60’s looking for an escape from the bustling Inner City.  Homeowners today enjoy the luxuriousness of their sprawling estates and the hometown feel of a community they govern themselves.

Key Reasons Why Buying in the Memorial Villages makes good economic sense:

1.  Bunker Hill Village,  Hunters Creek Village, and Piney Point Village jointly operate the Memorial Villages Police Department.  Hedwig Village operates its own Police Dept. The Village Fire Department serves all of the Memorial villages.  These villages have their own mayor and council members.  Safety, security, and local government give the residents the peace of mind and stability that all homeowners crave.

2.   Students who live in this area attend the Spring Branch Independent School District, where I had the pleasure of teaching for 7 years. The feeder schools that the children attend are: Memorial Drive Elementary, or Bunker Hill Elementary, or Frostwood Elementary which are all are Exemplary Schools.  Memorial Middle School is an Exemplary School as well, which is quite an honor for a middle school population.  Remember, Middle School?  Was anyone THAT interested in school??? Well, these kids are!   Spring Branch Middle School is Recognized.  Memorial High School is also Recognized.  These students are highly motivated individuals both in the classroom and in their extra curricular activities.  Unlike many other “wealthy” neighborhoods in Houston, it is not paramount that you send your child to a private school.  When you live in the Villages, you can be comfortable in the fact that your children will get a good education.  This is a big selling point for this area.

3.  The Villages are very conveniently located to Central Houston.  Surrounded by excellent shopping, fine dining, and hospitals, the residents do not have to travel far for these luxuries.  The entire area is booming with new construction.  I 10 is now 10 lanes, and getting to and from any part of Houston is so much easier.

4.  Let’s talk numbers!  I pulled the sold listings from previous years.  My parameters were:  77024 zip code, 4 bedrooms+, 4 baths+, New construction, No pool, 15000-35000 sq ft lot, 5000-6500 sq ft home.  This is what I uncovered:

We all know how challenging of a year 2009 was for all of us in the housing industry.  The stock market took a huge plunge, and the value of homes also took a nosedive.  Builders had the worst year they have had in years.  BUT, the plunge of 2009 still had homeowners who may have bought in 2004 holding onto some equity.  How many other housing markets in Houston can say that?  Less than 2.  Maybe. 

2010 is already showing some gains.  I thought this story about the Memorial Villages in the Chronicle was worth reading. 

I sell homes and lots in the Memorial Villages, and if you are interested in listing your home or purchasing a new home in this part of town, please contact me at kathy@kathyjonesrealty.com. 

(I apologize in advance for my website.  I am overhauling it this year, and it is under construction).

www.kathyjonesrealty.com

“Helping my clients build wealth through real estate”

Greece is famous for its hot summers, beautiful beaches, low cost of living and wealth of historic, cultural and scenic attractions. If you have seen a property in Greece that you wish to purchase, please read on…..

Living in Greece will have you doing hand stands

Generally speaking, there are no restrictions to foreign nationals acquiring real estate in Greece.  Once you have purchased your property, you become the freehold owner in perpetuity.  The good news is that once you have found your new home and secured financing, completion of the process should not require more than 6-8 weeks.  The bad news is you need to add about 20% to the purchase price to cover costs such as taxes, fees, and the hiring of attorneys and notary publics.

Wanna a piece of this?

1. Work with a real estate agent.  This will help insure a smooth transaction with a professional who knows the market and the laws.  In  Greece, less than half of all real estate transactions involve a real estate professional, but that number is on the rise.  Be advised that whoever hires an agent, pays the agent.  So, if you as buyer, decide to hire an agent, you will pay their fee.  If the seller hires an agent to market their property, then they will pay the agent their fee.  The typical fee is 2-4% of purchase price.
2.  A preliminary contract is drafted between the seller and buyer which is signed by all parties involved.  This preliminary contract outlines the description of the property, boundaries, the negotiated purchase price, commissions paid to real estate agents, etc. 
3. A deposit of 5-10% is needed to secure property.  If you back out of deal, you will lose your deposit, and if the seller backs out of deal, you are entitled to receive double the deposit in damages.
4. Obtain a local tax roll number (AFM) which gives foreign nationals permission to buy property.  This number is very important, so keep it handy.  You will need it to open a bank account, turn on utilities, or propose planning/development.  To get this number, you need to fill out an M1 and M7 tax form. Non Greek residents have to designate a Greek resident to receive all communication while you are out of the country. The easiest way to do this is to issue a power-of-attorney to someone in Greece you trust.
5. Open a bank account in Greece since all monies to fund transaction must come from a Greek bank.  A person from another country interested in buying property in Greece will need to obtain what is known as a “pink slip” for wire transfers of money from abroad.  Greek authorities are very concerned with where the money to purchase a property came from.  If you cannot provide a “pink slip”, be prepared to pay an income tax on the money wired in to fund the transaction.
6. Hire a civil engineer to inspect and analyze the property, both structurally and to ensure the boundaries of the property are not encroaching on the neighbor’s.  Obtain a Topographic Survey.
7.  Hire a bilingual attorney to represent you in Greece for the purchase of the property.  The Buyer must appoint an attorney to assist him with and represent him in the process. 
8. Your attorney will draw up the final contract with seller insuring the seller has the right to sell and that there are no outstanding debts.  (S)he will also determine that the construction was completed in accordance to all planning and building permissions, and the property does not encroach on another’s land.  Attorney’s negotiated fees are typically 1-2% of sales price. 
9. You or your attorney will hire a Public Notary, a State Official who is a neutral party in the transaction, who will prepare all the other documents needed to purchase property.   In Greece, this person is called the Symvoulografo.  In order for any purchase agreements to be valid, they must be done in the presence of a Public Notary.   You will pay the Public Notary a fee that is usually about 1-2% of the amount listed in the deed of the sale. 
10. You will also need to pay the transfer tax that is payable to the local tax authority and amounts to 9% for the value up to 15,000 Euros plus 11 % for the value above 15,000 Euros.  In areas that are not covered by a fire department these figures drop to 7% and 9% respectively.
11. Once all the necessary legwork has been completed and both the attorney and the Public Notary give their approval to convey property, the formal transaction takes place at the Office of the Public Notary.  The balance of the purchase agreement is paid at this time.  Once the contract is signed and agreed upon by all parties and the Public Notary insures that the documents comply with Greek law, the property is conveyed and sent to the Land Registry for Registration of title.  This fee amounts to 0.45 % of the property value.
12. Congratulations!  You now own property in Greece!  Giamas! Cheers!

**  Be sure to also speak with your tax advisor both in the US and in Greece for taxation requirements.

If you are interested in purchasing a property in Greece, please contact me.  I know of several properties that may be of interest.

www.kathyjonesrealty.com

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®. 

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5.  Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

 realtor.org

www.kathyjonesrealty.com

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

 realtor.org

www.kathyjonesrealty.com

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

 www.kathyjonesrealty.com

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind. 

□         Neighborhoods

What neighborhoods do you prefer?

□         Schools

What school systems do you want to be near?

□         Transportation

How close must the home be to these amenities:

• Public transportation                          
• Airport
• Expressway
• Neighborhood shopping
• Schools
• Other

□         Home Style

• What architectural style(s) of homes do you prefer?
• Do you want to buy a home, condominium, or townhome?
• Would you like a one-story or two-story home?
• How many bedrooms must your new home have?
• How many bathrooms must your new home have?

□         Home Condition

• Do you prefer a new home or an existing home?
• If you’re looking for an existing home, how old of a home would you consider?
• How much repair or renovation would you be willing to do?
• Do you have special needs that your home must meet?

□         Home Features 

Please circle one of the choices: Must Have, Would Like, Willing to Compromise, Not Important 

Front yard                             Must Have             Would Like            Willing to Compromise      Not Important                        

Back yard                             Must Have             Would Like            Willing to Compromise      Not Important 

Garage ( __ cars)               Must Have             Would Like            Willing to Compromise      Not Important 

Patio/Deck                           Must Have             Would Like            Willing to Compromise      Not Important 

Pool                                        Must Have             Would Like            Willing to Compromise      Not Important 

Family room                         Must Have             Would Like            Willing to Compromise      Not Important 

Formal living room             Must Have             Would Like            Willing to Compromise      Not Important 

Formal dining room           Must Have             Would Like            Willing to Compromise      Not Important 

Eat-in kitchen                      Must Have             Would Like            Willing to Compromise      Not Important 

Laundry room                      Must Have             Would Like            Willing to Compromise      Not Important    

Finished basement            Must Have             Would Like            Willing to Compromise      Not Important 

Attic                                       Must Have             Would Like            Willing to Compromise      Not Important 

Fireplace                              Must Have             Would Like            Willing to Compromise      Not Important 

Spa in bath                           Must Have             Would Like            Willing to Compromise      Not Important 

Air conditioning                   Must Have             Would Like            Willing to Compromise      Not Important 

Wall-to-wall carpet             Must Have             Would Like            Willing to Compromise      Not Important 

Wood floors                         Must Have             Would Like            Willing to Compromise      Not Important 

Great view                           Must Have             Would Like            Willing to Compromise      Not Important

□         Other notes:

 www.kathyjonesrealty.com

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.

 www.kathyjonesrealty.com

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

brought to you by realtor.org

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

 2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.

Brought to you by realtor.org

www.kathyjonesrealty.com

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe.  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com.

 www.kathyjonesrealty.com