Categories
general info

Buying Second Homes – What To Consider

Good general guidelines from the KCM Blog crew to keep in mind.

What to Consider When Buying a Second Home

by MARK SCHEETS

Today we are happy to have Mark Scheets, a writer for Total Mortgage Services, as our guest blogger. – The KCM Crew

Sooner or later you may reach a point in your life where you are financially stable and plan to purchase a second home.  For the most part, people who look to buy a second home are either looking at it as an investment or somewhere to vacation.  It is important to become familiar with the process when looking for and making the decision to purchase a second home.

781 boardwalk

Purchasing a second home is similar to the purchase of your first home, but there are also some important differences that you may not be aware of.  Two of the most important things to consider when buying a second home are to know what you’re looking for and how much you can spend before beginning the process.

When considering buying a second home, timing is a big aspect of the purchasing decision.  If you are in the middle of your career or ready to retire, you need to ask yourself what is the point of buying a second home.  Many homeowners will ask themselves “Do I want to use this home as a personal retreat or as a rental property?” Another question often asked is “Can I afford this?”  You may have to wait 6 months or a year, but having a good understanding of the current market and knowing when you are planning on making the purchase, will get you what you want.

Get Help

One step that will benefit you when looking for a home, is hiring an agent.  Most people find their agents through friends, family members or colleagues.  The agent’s job and expertise is in helping guide you down the correct path and being there to answer whatever questions you may have.

Do Your Research

Your second home can be whatever you want it to be, but one thing to keep in mind is that the location and property need to be a good fit with your current lifestyle.  A good idea for buying an investment property is to make sure that it is somewhat near your current home, in order to be close to it in case of an emergency.  When considering a vacation home, especially one that is far away, it is a good idea to talk to the locals who live there to get their prospective on the area.  This is important because you will not be at the house year round; and you need to see yourself enjoying living there.

Whether you have planned to purchase a second home for years, or have finally started considering it, it is extremely important to make sure all of your finances are in order.  It is a good idea to know exactly what is needed financially to get your plan into motion.   When applying for a second mortgage, there will be stricter lending and mortgage requirements, especially if you will not be living in that home.

Be Prepared

Another aspect to take into consideration is your taxes, which will be based on the use of your second home.  The IRS has declared “if you live in your home for more than 14 days, or more than 10% of the time you rent it out in a year, then it is considered your personal residence”.  If these conditions are not met, your home will be considered a rental property and you must report all rental receipts as income.

When the time comes to finally figuring out how to purchase your home, weighing your options are important.  It’s good to know that buying an existing home is far cheaper than buying land and building.  Many people with second homes have made financial mistakes with their home and are looking to sell quickly to cut their losses and move on.  This fact could help a buyer if the house is similar to what they are looking for, as it can be had for a cheaper price.

A mortgage on a second home will have a higher interest rate than one on a first home.  It might be a good idea to consider a home equity line of credit (HELOC).  A HELOC allows the buyer to tap into their existing home’s equity so that you can provide a bigger down payment.

Protect Yourself

If the time ever comes where you decide you would like a second home, make sure that you do your research.  Being aware of what you are getting into is always smart before diving in.  There are various differences between the ownership of a primary home compared to a secondary home and knowing these differences will help out immensely.  However you decide to use it, those who pursue the ownership of a second home will have to take extra precautions in protecting their investment.

Categories
general info

The Chevron In The South End

The Chevron. Our favorite new South End building written up in Curbed Boston.

Here’s the South End’s Chevron

Wednesday, September 25, 2013, by Tom Acitelli

chev2.JPG
[All photos for Curbed Boston by David Bates]

A year ago this week, 518 Tremont Street, one of the last free-standing retail buildings in the South End (home of the Olde Dutch Cottage Candy & Antiques store), was demolished to make way for a collection ofParisian-style condos known as The Chevron on Tremont. Up top is said Chevron a year on, close to completion.

chev3.JPG

Above is a sliver of one of the building’s 2,500-square-foot, floor-through flats, which have retailed for around $3,100,000 and which have all gone at least under agreement, if not sold completely. Below is a view from the Chevron, courtesy of real estate agent David Bates, who has detailed the Chevron’s sales pace.

chev1.JPG

Update: Actually, the third-floor spread is back on the market for$3,500,000.

Categories
general info

$500K In Provincetown

Here are are few of my favorites that are available in Provincetown for close to $500K.

12 Atwood Ave #212 Atwood Ave #2. $535K, 1/1, 696 sf. A quintessential West End cottage, 12 Atwood Avenue is a charming wood-frame home set back from a private unpaved lane behind a flower-covered white picket fence. With 696 square feet of living space, this one bedroom, two-story cottage is the ultimate Provincetown retreat. The living room is at the front of the cottage and has an oversized wood-burning fireplace. There is a dining room/den next to the kitchen in the rear of the first floor. The entire second floor is a large bedroom and bath with multiple windows with wonderful sight lines to lovely Atwood Avenue. There is a bright private garden.

 

 

 

45 Commercial St #845 Commercial St #8, $499K, 2/2, 555 sf. This condo is in the Jones Locker complex on the water in the West End.  There is a large common deck to enjoy the sun and the bay. This spacious first floor 2 bed room and 2 full bath unit make a great second home and/or rental (approx. income for 2010 $32,000.00) Lots of windows and a peak of the water from the living room. Assigned Deeded off-site parking for one car.

 

 

 

 

 

49 Bradford St #1149 Bradford St 311. $509K, 2/1, 650 sf Ideal West End Location! Just a 2-minute walk to Commercial St in the West End near the Boatslip, this lovely freestanding, 2-level home offers an open floor plan with living/dining/kitchen, screened porch and full bath on the 1st level and master bedroom with slider to deck and 2nd bedroom on the 2nd level. Wood floors, central air, common laundry, additional storage, parking. Condo fee includes heat. Great rental history!

 

 

 

42 Franklin St #B42 Franklin St #B. $489K, 1/1, 626 sf. Built in 2008, this freestanding two level cottage in Provincetown’s west end is lovely inside and out. Open floor plan on the first floor with stainless and granite kitchen, dining and living area with hardwood floors throughout. There is spiral staircase to second level with tiled bath, laundry and bedroom. Large closet with built-in’s, solid wood doors, blackout shades, and balcony off the bedroom. The outdoor space is superb with upper level dining area, outdoor shower, basement for lots of extra storage, and a custom hardscaped patio with stone walls and fire pit. This would be an excellent rental and ideal Provincetown get-a-way!

 

 

Categories
general info

Boston Prices Outpace Nation

Greater Boston prices outpace nation

Posted by Scott Van Voorhis  September 23, 2013

The already overpriced Boston area is even more expensive now, with home values rising more than 10 percent in August to more than $341,000, Zillow reports this morning.

That’s nearly double the pace nationally, with home values across the country (Zillow’s index includes both prices and assessed values) having risen by a comparatively modest 6 percent.

In fact, this is a reversal of the trend we have been seeing over the past year as the real estate rebound kicked into high gear.

Greater Boston, which in most surveys includes everything inside the 495 beltway and some of the bedroom communities of Southern New Hampshire, saw a much less dramatic decline in home values than many other parts of the country after the bubble burst.

Hence, when home prices began to rise again, the Boston area posted respectable, but not spectacular, single-digit gains, compared to hard hit markets like Las Vegas and Phoenix, which saw prices suddenly soar by 20 percent or more.

Of course, when you’ve hit rock bottom and have been given up for dead, like Vegas and Phoenix and other overbuilt and over-speculated Sunbelt cities, there’s only one way to go, and that’s up.

Context is crucial.

So why is Greater Boston now outpacing the nation when it comes to rising home values?

A relatively robust economy driven by high-paying industries like biotech and tech are combining with decades of anemic residential construction in a perfect storm of surging demand and dwindling supply.

It may be good news for potential sellers, but for buyers, it’s only getting tougher out there as the fall market continues to heat up.

 

Categories
general info

Rock Bottom Rates Here To Stay

Good post by Scott below.

Up ahead: A frenzied fall for home buyers

Rock bottom interest rates are here to stay.

Posted by Scott Van Voorhis

 In case you missed it, good old Ben Bernanke just officially ditched any plans to scale back the the Fed’s multitrillion-dollar monetary manipulations that have kept interest rates at crazy lows.

The Fed chairman on Wednesday ended months of speculation that the central reserve bank is gearing up to scale back on its $40 billion a month purchase of mortgage-backed securities.

Concern that the Fed would start scaling back on this massive housing market stimulus, sparked earlier this year after some rather suggestive remarks by Bernanke, sent interest rates edging upwards, reaching into the mid 4s after having fallen to the low 3s.

That’s all history now, though. In fact, Bernanke doesn’t see any change in what is effectively the Fed’s home buyer subsidy program until 2016.

If you are out hunting for a house right now, you probably already know why this is big news, but I will spell it out anyway.

All those record low rates in the 3 percent range represent a massive government subsidy for home buyers, helping cut the cost of a monthly payment by as much as a third, at least compared to more traditional rates in the 7 and 8 percent range.

Yet there is a dark side to these crazy low interests – rising home prices.

By continuing to keep the pedal pressed to the metal, the Fed has effectively given a huge jolt of caffeine to a housing market that was already still fairly hot, if moderating a bit.

That means more bidding wars for scarce properties and another big boost for home prices.

As if Greater Boston needed that.

 

Categories
general info

Tiny Home – What A Surprise.

Very cool! we could use a gazillion of these in Provincetown and on the Cape.

Tiny Home Assembled In Just One Day Has A Big Surprise Inside

The Huffington Post  |  By Posted: 09/17/2013

Sometimes a home’s exterior can be, well, misleading. And usually that’s a bad thing, but sometimes there is an exception. That’s the case with the portable home ÁPH80 designed by Spanish architecture firm Ábaton. From the back, the simple construction of a grey cement board gives it the appearance of a garden shed, but step around to the front and you’ll see this jewel box of a tiny home in full glory.

 

tiny home 2

tiny home 3

 

 

 

 

 

 

 

According to Ábaton, the house was designed with three things in mind — wellbeing for its inhabitants, environmental balance and simplicity — and we think they’ve hit the nail on the head. Inside the 290-square-foot space which is perfectly comfortable for two, you’ll find a living-room/kitchen, a full bathroom and double bedroom. The large expanse of floor-to-ceiling windows and the gabled ceiling, which is eleven feet at its highest, make the small space feel open and airy. The interior walls were left white as a clean and simple backdrop to the most beautifully curated earthy furnishings by Batavia. And most of the materials used for the home can be recycled.

 

tiny home 4

s-TINY-HOME-1

 

 

 

 

 

 

 

 

But the coolest part is that after it’s been manufactured, this little dwelling can be assembled in just one day and it can be transported almost anywhere.

Where can we sign up for one?

Categories
general info

More Sticker Shock In Boston

 

A recent post by Scott regarding prices and inventory levels in Boston and suburbs.

Coming this fall: More sticker shock

Posted by Scott Van Voorhis  September 9, 2013 08:34 AM

Welcome to fall, traditionally the hottest time for home sales, barring spring.

And brace yourself. After a small breather in August as the market slowed down a bit during vacation time, the fall is likely to bring another round of crazy price increases and bidding wars for scarce homes.

Here’s a Globe piece from an old friend of mine, Jay Fitzgerald, which offers a preview of the fall market.

More than 60 towns and urban neighborhoods have already blown past previous price peaks set in 2005 at the height of the housing bubble, the story notes, citing stats from The Warren Group.

And who’s leading the price charge? Well, if you haven’t already guessed it, it is the usual suspects, “desirable Boston neighborhoods and close-in cities and towns such as Arlington, Brookline, Cambridge, and Newton,” Fitzgerald writes.

Here’s a quote from a frustrated buyer interviewed in the piece.

“I always expected high prices,” said Rich Garfield, 31, a software engineer now renting in Somerville’s Davis Square, “but our agent told us right off the bat that everything we looked at would go higher than the asking price, and that’s exactly what has happened.”

If you have lived in Greater Boston for a decade or two, you might be wondering whether the crazy cycle of skyrocketing home prices is starting all over again.

If so, your right, and here’s why.

Here’s Fitzgerald’s piece again:

Mark Zandi, chief economist at Moody’s Analytics, a forecasting firm, said longer-term factors are also at work. Massachusetts has a decades-old history of dramatic run-ups in housing prices precisely because not enough new housing is built to meet demand, said Zandi, who has closely followed the New England economy.

A combination of scarce land and sometimes contentious permitting at local levels has inhibited home building in the state, he said. “It’s ultimately a supply problem.”

 

Categories
general info

On The Pond

46 Shank Painter Road is a gorgeous 12 year old cape with luxurious living on three levels – and it is a complete surprise! Entering into the house from the beautifully landscaped front entrance you are immediately struck by the view of Shank Painter Pond Wildlife Sanctuary. We just had a very well attended brokers open house  this morning and many brokers didn’t realize that this incredible pond view existed behind the house, and to top that off a pair of blue herons kept flying back and forth for everyones pleasure. This house literally sits on Shank Painter Pond and looks out on the most beautiful conservation land in town.

As you see the front of the house is a traditional full Cape with an extension that has it’s own entrance, and the back of the house is 3 full floors of glass sliders that take full advantage of the view – and this stunning house is only 2 blocks to Commercial Street!

 

front of house 1

back of house 1

 

 

 

 

 

 

 

 

 

 

 

The pictures below show the living room and dining room – the west and south walls are rough hewn stone, the floors are hardwood, and the view as you can see is delightful. There is a wood burning fireplace, a large full bath, and a den with doors out to a sheltered and private sunning or dining deck.

glass doors

living room

dining room

 

 

 

 

 

 

The dream chef’s kitchen has double Themador wall ovens, double stainless sinks, a subzero fridge, a 6 burner gas stove top, double trash compactors and beautiful marble and tiled full wall backsplash.

 

kitchen

buddah in window

deck view 2

 

 

 

 

 

 

The spacious master suite on the lower level has sliders out to the yard and pond beyond.  The large master bath has double sinks, a large glass enclosed shower, and the double size soaking tub with a view that you see below. In addition on this level there are double walk in closets,  a full size sauna, and a large laundry room with side by side W/D and extra storage. In the backyard, steps from the master bedroom is a large hot tub, and an outside shower.

 

master br 3

master br 1

master bath 1

 

 

 

 

 

The second full floor suite is on the top floor of the house, and as you can see below has stunning views of the conservation land stretching out before you. This floor is a light and bright aerie and has been used by the owners as an artists studio. There is a combination master bath, and a charming  meditation room on this floor, as well as a private deck.

front of house 2

upper suitedeck with chairs

 

 

 

 

 

 

46 Shank Painter Road is being offered at $1,199,000.

 

 

 

 

 

 

 

 

 

 

 

Categories
general info

The Cottage on Atwood Avenue

If there ever was a quintessential West End cottage, 12 Atwood Avenue is surely it. This charming wood-frame freestanding condo  is set back from the private unpaved lane behind a honeysuckle-covered white picket fence. With 696 square feet of living space, this one bedroom, two-story cottage is the ultimate Provincetown retreat. There is also a very sweet, exclusive-use sun-lit private garden and patio area.

front 1

garden 2

 

 

 

 

 

 

 

The main floor has a front facing living room with a charming brick fireplace. There is a separate dining room next to the kitchen in the rear of the cottage.

living room 2

dining

 

 

 

 

 

 

 

The entire second floor is a large bedroom and bath with multiple dormered windows and lovely sight lines to Atwood Avenue.

bedroom 1

bathroom windows

 

 

 

 

 

 

 

The kitchen has gas cooking, and is directly off the dining room and steps away from the outside patio and garden.

kitchen 2

kitchen 1

 

 

 

 

 

 

 

 

living room 3

12 Atwood Avenue has just been developed into a lovely two-unit condominium association, and is being offered at $535,000.

 

 

 

 

 

 

 

 

 

 

Categories
general info

July Was Best Month For Home Sales Since 2006

Great July market review from The Globe’s Chris Reidy below…

By Chris Reidy

|  GLOBE STAFF  AUGUST 29, 2013

The number of Massachusetts single-family homes sold in July was up more than 18 percent on a year-to-year comparison basis as the Bay State had its best month for sales volume since June 2006, the Warren Group said Thursday.

Condominium sales in the state were also up sharply. Meanwhile, the median price of a single-family home rose 10 percent in July, increasing to $349,000, said the Warren Group, a Boston company that tracks local real estate activity.

“Many recent real estate reports have signaled a strong real estate recovery, and our numbers speak to that rebound,” David Harris, editorial director of the Warren Group, said in a statement. “While consumer confidence and strong employment numbers continue to bolster the market, there’s concern that higher mortgage rates and increasing home prices could dampen the revitalized market.”

Last month, 5,941 single-family homes were sold statewide sold, up from 5,014 sold during July 2012, the Warren Group said.

As for condos, 2,336 were sold in the state during July, up nearly 17 percent from the same month a year ago.

July’s median selling price for a Massachusetts condo was $310,000, up 5.5 percent from July 2012.

The Massachusetts Association of Realtors also issued its monthly report on the local housing market Thursday. The association uses a different method than the Warren Group does to calculate sales activity.

According to the association, there were 5,750 detached single-family homes sold this July, a 20.3 percent increase from a year ago. The July 2013 total was the most homes sold in one month since July 2004.

In a statement, association president Kimberly Allard-Moccia said: “The combination of buyers wanting to close and move in before the start of the school year and their concern over increasing interest rates resulted in another positive month in July. Hopefully the activity of the past few months will encourage homeowners who are thinking about selling to put their homes on the market. Buyer demand is there, but the shortage of inventory often prices buyers out of the market.”

Chris Reidy can be reached at [email protected].