Living in Portland

FHA announced two weeks ago that they had found a way to allow the First Time Home Buyers Tax Credit of $8K to be used as a down payment on the purchase of home.  Everyone figured that the $8K would be made up in the form of a loan or second mortgage.  Even though this would have been nice for Buyers, it would have been an administrative nightmare for the Banks.

As it turns out, the new regulation does allow the $8K tax credit (exact process still unknown) to be used for closing costs but DOES NOT apply to the 3.5% down payment.  Buyers still need 3.5% of their *own money to purchase a home.  The tax credit can be added to the 3.5% to create a larger down payment, it just can’t be the only down payment.

* The downpayment can be gifted or borrowed from a relative.

6/8/09 Update:  HUD announced that they have no plan for ‘how’ a buyer would take advantage of the $8K for the purchase of a home.  They suggested the banks making the mortgage loan would have to ‘loan’ the buyer the $8K with a ‘promise to pay it back’ when he gets his tax return.  We all know that is never going to happen.

Why they even started this is beyond me.

Making an offer on a HUD owned home is very different from bank owned foreclosures.  All offers are submitted through their website and only registered Real Estate Agents have access.  When a property first comes on the market, HUD gives owner-occupied Buyers priority.  They do this by only accepting owner-occupied bids during the first 10 days of the listing.  The listing clearly states the day bids are due and Sunday counts.  The results are then posted on-line within 24 hours.   If the home is not sold after the 10 days, investors or anyone else can place a bid. 

HUD has some strict rules for Buyers, so be sure you know all of them before you place a bid.   Always remember that you are buying AS-IS.  Two of the biggest are your earnest money deposit is non-refundable, even if you back out.  The second is that the Buyer has to pay to have the utilities turned on in order to complete an inspection.  HUD does not negotiate over repairs unless there is a major structural or mechanical issue.  If there is (and HUD agrees) you may be entitled to a refund of your earnest money.  HUD can also offer to reduce the sales price at their discretion.

PORTLAND SATURDAY MARKET MOVES TO NEW HOME ON THE SOUTH PARK BLOCKS

Saturday Market was held under the Burnside Bridge for almost 40 years.  So when the City wanted to clean-up the area and revitalize the community finding a new home posed a problem.  They wanted to stay close to the City center and yet find a place with public transportation on every corner.  The answer?  The South Park Blocks at Portland State University.

Saturday Market is an outdoor street fair full of artists selling handmade goods of every kind. Everything sold at the market including the food must be hand made.  No commercial products allowed (that includes Pepsi).  You can find jewelry made from crystals, hand-blown glass, framed photographs, clothing of every kind made from natural products, musical instruments and street corner musicians.

The market is set up every Saturday and Sunday morning at 9am between April and December.  The market attracts young and old alike, visitors and locals, business suits to Birkenstock.

Saturday mornings also inclued the Portland Farmers Market, but that’s another story.

The Portland Rose Festival is probably the biggest and most significant celebration held in Portland Oregon.  It’s roots go back 102 years and continues today.  this Festival is visited by more than two million people and is a celebration of our culture and our heritage. 

On the heels of the successful Lewis & Clark Exhibition of 1905, Mayor Harry Lane decided the city should have a festival of roses. In those early years, horse-drawn floats, aquatic events, and fireworks highlighted the Festival. Following the 1907 event, a group of 10 businessmen formally organized the Portland Rose Festival as a nonprofit organization (now called the Portland Rose Festival Foundation) to plan and finance the annual event. In 2007, the Rose Festival featured a Century of Celebration in its most elaborate incarnation ever. 

 For a listing of events visit: http://www.rosefestival.org/

Last night I was in Downtown Portland to meet clients that were renting my condo for a long weekend and hand over keys. My 15 year old Daughter decided to come along since we hadn’t spent much time together in the past week. I later found out that her real interest was to shop along NW 23rd for a prom dress. We arrived about 6:45pm and I was surprised to find all the restaurants not only busy, but serving outside. Walking from shop to shop we were bombarded by all the great smells and activity on the sidewalks. Shops had merchandise set out next to the restaurants dining tables, music could be heard from a couple of pubs, and all of this on a Thursday night during a recession! How great is that. I sometimes forget that there is a whole other world in Downtown Portland. Best of all, it all had the distinct feeling of Summer which is still a few months away. One bad thing, my parallel parking skills stink.

I was reading an article on CNN yesterday that quoted several economists as stating “Interest Rates are as Low as they are Going to Get”.  Based on all the contributing factors, interest rates will bottom out between 4.5% and 5%.  So for those of you who have be waiting for the best time to buy or refinance, this is it.  I would also venture to speculate that housing prices have hit bottom as well.  I don’t expect them to start climbing just yet, but I believe the drop is over.  March sales numbers for Portland are going to come in strong with the third monthly increase this year.  The rest of the Nation is on the same track.

This is an annual report that is packed full of information on the various neighborhoods in Portland. In contains descriptions of each, highlighs, school information, demographics and more. Be sure to check it out.

http://tinyurl.com/5u9vb5

Copied from CNN website: 

Population: 535,421
Pros: A thriving urban scene, abundant outdoor recreations
Con: High living costs (but coming down)

Young, educated and creative. That’s the kind of workforce on offer in Portland, thanks in part to the presence of companies such as Nike and Intel, which has seven campuses in Oregon, most of them within 20 miles of Portland.

But even independently of these corporations, the city harbors a strong design and high tech industry. Environmentally minded companies will be at home in the area: Portland was ranked the most sustainable city in the U.S. in 2006 by SustainLane, a green-living research and publishing group. While Portland’s business tax structure is not the friendliest - Multnomah County imposes a business income tax - the city boasts a thriving entrepreneurial and venture capitalist community, with 2,571 start-ups (almost 5 per 1,000 local residents) registered in 2007.

A mature city, Portland offers a downtown of historic neighborhoods and a vibrant restaurant community, as well as arts centers, a symphony and an opera. -Malika Zouhali-Worrall

http://tinyurl.com/569×39

I spent my morning at the Clackamas County Fair Grounds in Canby this morning at the semi-annual tack sale.  This sale draws horse lovers from all over the Metro area to buy and sell, new and used tack of all kinds.  There are usually more than 100 booths and about 2000+ buyers.  We found an amazing show saddle for just $650. (sounds like a lot but really isn’t).  Most people don’t realize that Clackamas County has the largest horse population in the State.  You can find very nice horse properties just outside the Urban Growth Boundary and within a 30 minute drive to Downtown Portland. 

Wow how great is that!  This time I think the 4.5% (or better) is going to be around for awhile.  On the ABC news last night they were quoting the rate at 4.93% (national average) but in the Portland area, I received emails from several lenders stating the lower interest rate.

It might be worth looking into refinancing.  The turn around time on refi’s is long but the money you save could be worth it.  I would only suggest refinancing if you plan to stay in your house a minimum of three years.  It usually takes a couple of years for the cost of refinancing to be recovered by the lower payments.  This does vary based on your current interest rate.