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It is no surprise Boston rents have skyrocketed it seems over night. Some areas have seen increases as much as 25 percent over the past few years. Salaries are not keeping up with the pace of housing costs. This fact hurts middle to low income tenants but provides great benefit to landlords and young professionals with cash to burn for convenience. 

The hub is one of the most expensive markets in the nation. Overseas investors purchase properties without seeing them, they simply want somewhere to park their money and earn a great return on that investment. The Boston market is ideal because we are the educational hub, young professional and business hot spot.

Not only do we have oversees investors, but also new investors who want to own a property and have tenants help pay their mortgage. In the short term, the owner’s “rent” is cheaper as tenants pay the bulk of the mortgage. In time, as property values appreciate and owners take advantage of the many tax benefits of owning real estate, it becomes a more profitable and solid investment. If the market crashes, your home may lose value as far of sale price but your income from the property is stabilized and you are not financially affected if you are a responsible landlord. 

In addition to owner occupant investors, we have young professionals who are looking to diversify their portfolio by adding a little local real estate. They do not reside in the property but rather use it as a generator of additional income. Boston’s market is very strong and has weathered most of the financial downfalls of the nation so it is seen as a more safe investment.

Jamaica Plain and Roslindale are hot beds for hipsters and young professionals, and investors know this. Adding amenities and converting triple deckers to condo units is extremely lucrative and they are cashing in on the trend. Investors can spend full price on a triple ($600,000), convert each floor to a condo and sell each unit for upwards of $400,000 each unit. 

The benefits of buying a multi-family is very apparent to oversees investors and becoming more popular with young professionals. If you are interested in purchasing or selling your multi-family, please email us at Contact@MandrellCo.com.

One of our multi-family focused agents will be in touch and can walk you through everything you need to know, whether a buyer or a seller.

Contact us TODAY: Contact@MandrellCo.com 

 

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Millennials Choose: Boston Condo versus Single Family?

For the first time in the region’s history, the median sale price of condo units in greater Boston is virtually equal to the median sale price of single family homes. In 2000, condos sold for two-thirds  the price of a single family home in Greater Boston. Today, they are at 99 percent of the value of a single family home. The increase demand and subsequent price hike is due to high-end units and amenities as well as the buying power of younger buyers and investors. 

Millenials do not want maintenance heavy homes as they prefer to enjoy the finer things in life. They prefer to pay the higher price to forego, yardwork, snow removal, and other bothers. The convenience of proximity to public transportation, simple luxuries as in building gyms or pools are extremely appealing. In the past, inventory was cramped and older, today, we have more amenities which comes at a premium. In addition, the cost of construction has increased which makes more sense for developers to produce luxury units as opposed to single family homes as they also get a greater return on their investment.

Millenium Tower is under construction and it’s already more than 90 percent pre-sold. It is not scheduled for occupancy until the summer of 2016. Buyers are signing Purchase and Sale agreements 2 years in advance to secure this prime real estate. Although many are priced out of these areas, the key is to focus on the next up and coming neighborhoods. Prices in these areas are also on the rise but at a slower rate than the most desired neighbrohoods. Currently, Roxbury is the hotbed for millenials due to its proximity to the city and rich culture.

 

For more information or to work with our Roxbury specialist, Call Terrance Moreau today  at 857-399-0960 or email us at contact@Mandrellco.com for more information.

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On December 12th, Fannie Mae will go live with their HomeReady program aimed at credit-worthy buyers who need a little extra flexibility on the debt to income ratios, down-payment source and monthly mortgage payment verification after purchase. 

A crucial part of mortgage underwriting is evaluating your debt-to-income ratio. With student loans, car payments, entry level job salary, lenders may view your debt as too high and only count the loan applicants income. With the new program, Fannie Mae will also consider the income of anyone living in the home as “non-borrower” contributors, or parents who help pay your mortgage or gift you the down payment. 

With the ever changing dynamics of a traditional home, lenders understand that many homes consist of extended and blended families which makes it hard to qualify if you have people assisting with the bills but no real way to document it. Twenty-five percent of Hispanic homes are multi-generational, 20 percent of African Americans and 17 percent of Asians. The traditional home is no longer mom, dad and children.

To help bridge the gap, the HomeReady program offers the following:

  • Down payments as low as 3%
  •  No minimum contribution from you toward the down payment on a single family home purchase
  • You can add income of one or more household residents to strengthen your income qualification but not be considered borrowers on the loan.
  • When non-occupants are part of the picture, the minimum down payment increases to 5%
  • The Program allows you to count income from in-house boarders (someone who rents a room)
  • Everyone who qualifies for the program will need to complete an online home- purchase education course.

The new program is set to take effect on December 12th but feel free to reach out to us and be connected to a lender who already understands the program and can help you get pre-approved today!

Email us for inquiries at Contact@MandrellCo.com

 

 

 

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South Boston Rental Prices Quickly On The Rise

Are you a current or aspiring landlord in South Boston? No matter your years in the rental business, fully understanding your local market is one the most important things you can do to ensure your long-term success. Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your units rent for in comparison to your neighbors. Should you be increasing your rents?

 
Here are South Boston’s rental market statistics for the last 6 months.

 
Total South Boston 1 Bedroom Listings Rented: 125
Average Rent for 1 Bedroom Units: $2,107

Total South Boston 2 Bedroom Listings Rented: 252
Average Rent for 2 Bedroom Units: $2,735

Total South Boston 3 Bedroom Listings Rented: 98
Average Rent for 3 Bedroom Units: $3,391

Total South Boston 4 Bedroom Listings Rented: 23
Average Rent for 4 Bedroom Units: $4,070

 
Would you like a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email (or complete the contact form below) to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!
Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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