DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

According to the New York State Department of Labor website, unemployment rose to 10.3 percent in the month of September. This figure has touched 11 percent in the month of November this year. Also as per the State comptroller, the income tax filing reduced by 24 percent in August, and Wall Street companies suffered a loss of $ 42.6 billion last year. The situation does look bleak in these uptown locations and it directly impacts the rent rates. The average rents dropped for all sizes of apartments and the vacancies increased by 0.15 percent this month.

Due to the economic hardships and loss of jobs, the landlords were forced to shift rents downward to get the tenants. As per Gary Malin, president of Citi-Habitats, they expect the vacancy rate to increase and the rents to decrease. These changes are expected in order to make it a good proposition for people seeking places to rent and those who cannot afford a costly mortgage loan repayment any more. Citi-Habitats has compiled the data from 1,000 closed transactions handled in the month of October, which gives useful insights into the renting pattern.

Citi-Habitats further confirms that the Manhattan studio rentals reduced by 9 percent from October 2008, at a fair clip of $1901 per month. The trends show that the studio apartment rates fell by 7 percent; the cost of two bedroom apartments and three bedroom apartments fell by 8 and 6 percent respectively. The current rate of studio, two beds and three beds stood at $2563, $3605 and $4774 respectively.

The uptown and downtown rates also saw some downward movement. For example, the upper west side saw the rates of studio and one bedrooms fall by 13 and 10 percent respectively. Meanwhile, the downtown rates declined for the same apartment types to the tune of 14 and 13 percent respectively.

There are concessions being offered by the landlords to woo new tenants or to retain existing tenants. These concessions include a month’s free rent and incentives to the real estate brokers for deals. Rentals also makes more sense in these trying times, since you save up on the monthly money and on the down payment you have paid.

Normally, the monthly rentals will be far less than the mortgage payments for a new home. This way you can save up a good amount to buy a new home for yourself, especially when the second round of foreclosed properties hit the market.

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The real estate market has really been thrown by a mutually conflicting picture. On the one hand are many people struggling to pay their dues for the mortgages they have. Some of them have already been told by their lenders that the lenders are going to foreclose. In fact, the foreclosure rates have touched new heights and are tipped to soar further. On the other hand are people who are looking at this as a huge opportunity to get the dream home they have been waiting so long for.

Further, the deadline for availing the tax credit of $ 8000 for first time homebuyer has been pushed back to June. There is more good news; there is tax credit, of around $6500, for existing homeowners who want to buy a new home. However, it has some pre conditions, like the period of stay in the current house and the annual income of the household. This should further boost the sales, which seem to be picking up due to the federal support and existing market situation.

Most of the dreams of the homeowner are fulfilled with the help of a mortgage loan. Since many cannot afford to own the homes with their own money, loans are the order of the day. Whatever the situation of the market, loan interest rates, terms and repayment schedules play a key role in purchasing a home. The only other important aspects would be the price of the house and amount of loan that can be financed by the lender. With the interest rate for a 30-year fixed term loan going down the 5 percent barrier (it is at 4.98 percent this week), good properties are available with wider choices and negotiable rates. It surely is a heady combination for those who have saved enough.

If you have enough savings and are sure about your future cash flow, drive a hard bargain and chances are that you will get the best deal in terms of property, price and interest rates. Some might wait a little longer to see what the second round of foreclosures, which were held back, brings to the table. With the announcement of the tax credit for step up consumers, there are ample opportunities to get the tax benefit. Although it’s a difficult call for some, it’s becoming relatively easy for other prospective buyers to find the home of their dreams.

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