Thursday, November 27, 2014

Boise home prices return to 2008 levels


Boise home prices return to 2008 levels

Median housing prices nationwide – and in Boise – are at the highest rate since 2008, according to statistics released by RealtyTrac, a leading housing data source.
Ada County’s average home price for 2014 is $209,900, a 6 percent increase over last year, according to the Ada County Association of Realtors.

RealtyTrac pegs the national median sales price for October at $183,000, up 16 percent from a year ago to the highest level since September 2008.

“I think around 200,000, 205,000, 210,000 is the right place for us to be right now,” said Marc Lebowitz, executive director of the Ada County Association of Realtors.
Ada County bottomed out at $146,000 in 2011.

Combining Ada and Canyon Counties, RealtyTrac placed Treasure Valley among 21 cities deemed to have “lost steam” with home price appreciation from October 2013 to October 2014. Home appreciation in Boise-Nampa stumbled from 23 to 0 percent in the last year, the lowest among all the “losing steam” cities that include nine California metros and Phoenix.

Lebowitz, however, sees a half-full glass with home price appreciation.

“We are ahead of the timeline,” he said. “Our prices increased ahead of theirs, ours fell sooner than theirs and our recovery is starting sooner than theirs.”

Lebowitz believes home appreciation in Boise is starting an upward trajectory while other “losing steam cities may still see drops in home appreciation rates.”

Boise, however, is ahead of the nation on foreclosures. It is seeing half the foreclosure rates of the country as a whole. Foreclosures among outstanding Boise mortgages in September were at .8 percent, down from 1.47 percent in September 2013, according to real estate data provider CoreLogic.

The national foreclosure rate was 1.6 percent, CoreLogic reported.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Monday, November 17, 2014

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

Kennedy Wilson Acquires 324-Unit Apartment Community in Boise

YTD acquisitions for Company and its equity partners exceed $3 billion as global multifamily portfolio tops 20,000 units

BEVERLY HILLS, Calif., Nov 13, 2014 (BUSINESS WIRE) -- Global real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the Company purchased Reflections at River’s Edge, a 324-unit apartment community located in Boise, Idaho for $29.75 million investing $15.3 million of equity in the transaction (including closing costs). The Company also assumed debt of $15.2 million through Fannie Mae at a fixed rate of 5.3% with 5-years of interest only remaining.

“We are extremely excited to begin our presence in the Boise market with the acquisition of Reflections at River’s Edge,” said Kurt Zech, President of Kennedy Wilson Multifamily. “Boise is a strong, stable market with unemployment well below the national average. Employment and population growth has been very strong and have outpaced the national growth rate over the past decade.”

Reflections is located in the West End neighborhood of Boise. The property sits on a picturesque lake and is located 1.5 miles from downtown Boise. The adjacent greenbelt bike path provides tenants with easy access to Downtown and Boise State University. Immediately north of Reflections, a large parcel will soon be developed into a multi-use regional park. The Esther Simplot Park is a 55-acre property that includes 17 acres of ponds and will include fishing ponds, picnic areas, green spaces, public amphitheater and a whitewater park.

Kennedy Wilson’s global multifamily portfolio now totals 20,007 units. Real estate related acquisitions by the company and its equity partners year-to-date total more than $3.0 billion, which includes approximately $2.3 billion acquired by Kennedy Wilson Europe Real Estate plc.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is a vertically integrated global real estate investment and services company headquartered in Beverly Hills, CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and Japan. The company, on its own or with partners, invests opportunistically in a variety of real estate related investments, including commercial, multifamily, loan purchases and originations, residential, and hotels. Kennedy Wilson offers a comprehensive array of real estate services including investment management, property services, auction, conventional sales, brokerage and research. For further information on Kennedy Wilson, please visit www.kennedywilson.com.

SOURCE: Kennedy Wilson

Kennedy Wilson
Christina Cha, 310-887-6217
VP of Corporate Communication
ir@kennedywilson.com
www.kennedywilson.com

Copyright Business Wire 2014


The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Friday, November 14, 2014

Multifamily Holding Strong!

Multifamily Holding Strong!

The national apartment market strength is not slowing down though many predicted it would. As national effective rent growth reached a 35 month high in September, occupancy remained above 95 %.

September’s effective rent growth of 4.3%, the strongest since the 4.4% of October 2011, is a 22-basis-point (bps) increase from August 2014's 4.1% and a 131-bps difference from September 2013's 3.0%.

Year-to-date (YTD) effective rent growth decreased by 2 bps to 5.5% in September, which is not surprising given the trends of the recovery period. YTD rent growth has peaked in August or September during the past four years and then declined somewhat before the end of the year.

 Meanwhile, YTD effective rent growth was stronger than any other post-recession year for the sixth straight month and is still stronger than the 5.2% recorded for the first nine months of 2010 and 2011.

National occupancy declined by 10 basis points from August’s 95.2% to 95.1%, the second highest rate since Axiometrics started reporting on a monthly basis in April 2008.

Historically, occupancy peaks in August or September, so the market appears to be following its seasonal pattern, but at a higher level.

This apartment cycle – which began in 2010 –  is already longer than the last one (2004 -2008), and the market continues to perform strongly. The apartment sector’s strength is surprising to many analysts, especially so deep into the current cycle.

The main factors driving this cycle’s second peak include the growing number of prime renters, those between 20-34 years old, and the fact that these renters are unwilling or unable to purchase homes.

The population in the prime renter cohort is larger than in the last cycle. Also, the home ownership rate has decreased from the last cycle. The prime renter age group is either not willing to or not able to purchase a home.

Ten years ago, the prime renter age group population (red bars in the chart below) was smaller. This cohort was also more interested in owning homes.

Another reason for the spike in rent growth at the beginning of the current cycle is that supply and demand were misaligned. Rent growth really started to pick up when the economic recovery began and job growth accelerated. Meanwhile, little, if any, new apartment supply was being delivered. Now that new units are being delivered, job growth and rent growth are more in balance.

-Axiometrics Inc.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Wednesday, October 15, 2014

JUST LISTED - 7.25%+ Cap 13 Unit Apartment Building Caldwell ID blocks from College of Idaho

Indiana Avenue Apts. Thirteen Unit Apartment Building close to College of Idaho in Caldwell. Eight units on main floor with highly desirable townhouse style 2 Bedroom and 1 bath units. Four lower level apartments and one exterior apartment; all 2 bedroom 1 bath units. Low vacancy rates; vacant units typically pre-rented. Located close to business corridor between Nampa and Caldwell; shopping, employment centers, movie theater/restaurant complex, etc. Convenient coin operated laundry in building. Click here for listing for listing information.



The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Friday, October 03, 2014

Looking to Move to Boise Idaho or Invest in Boise Idaho Real Estate? Check out this video!

Check out this REALLY cool video from Greenbelt Magazine. If you are looking to move to Boise Idaho, you'll see a host of reasons to do so in this video. If you are looking for a home in Boise Idaho or an investment property in Boise Idaho, please call or email us. We can help you!



The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Friday, September 26, 2014

Home Selling Tips Every Seller Should Know


Home Selling Tips Every Seller Should Know

Price Your Home Realistically From the Start

94.3 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

The largest number of showings will occur in the first couple of weeks, so don’t turn these potential buyers off with an unrealistically high price!

Keep Your House Clean, Tidy and De-cluttered

91.4 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

It pays to keep your home in excellent shape at all times. You never know when a buyer might walk through the front door!

Work With an Agent Who Excels at Online Marketing

90.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Work with an agent who will do a good job marketing your home online. Your agent should take at least 6 listing photos and write a compelling listing description for your home.

Make It Easy to Show Your Home

90.3 percent of agents say this is a very important tip

0.4 percent of agents don’t recommend this tip

Make it as easy as possible for agents to show your home to clients. Don’t require appointments to be made weeks in advance or severely limit possible showing times.

Don’t Sign With an Unqualified Buyer

87.8 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Don’t sign a purchase agreement with an unqualified buyer. It’s not unreasonable to expect buyers to bring pre-approval letters (or proof of funds for cash purchases) to show they can buy your home.

Listen to Your Agent!

83.9 percent of agents say this is a very important tip

0.8 percent of agents don’t recommend this tip

Listen to your real estate agent! Find an agent you can trust and follow their advice and recommendations as closely as you can.

Make Small Upgrades to Your Home

83.6 percent of agents say this is a very important tip

0.2 percent of agents don’t recommend this tip

Make small upgrades to help your home sell for top dollar. These upgrades can include applying a fresh coat of paint, replacing door handles, curtains and cabinet hardware, fixing leaky faucets and cleaning the grout.

Work With an Agent Who Follows the Competition

82.4 percent of agents say this is a very important tip

1.4 percent of agents don’t recommend this tip

Work with an agent that will closely follow your competition. Your agent must be familiar with other properties on the market and know the comps in your neighborhood.

Stage Your Home’s Exterior

76.0 percent of agents say this is a very important tip

0.0 percent of agents don’t recommend this tip

Stage the exterior of your home: Spruce up the landscaping, trim vegetation, clean walkways of debris and apply fresh coats of paint to the house, fence and deck.

Don’t Insist on the Asking Price

72.0 percent of agents say this is a very important tip

3.0 percent of agents don’t recommend this tip

Don’t insist on selling your house for your asking price, its appraised value, the tax assessor’s estimate, or what you paid for it – your house is ultimately worth what the buyer is willing to pay for it!

Alert Family and Friends

67.7 percent of agents say this is a very important tip

0.6 percent of agents don’t recommend this tip

Alert your friends, relatives and neighbors that your home is on the market via email and social media. They may forward your home’s listing to buyers they know.

Make Your Home Move-In Ready

66.6 percent of agents say this is a very important tip

0.9 percent of agents don’t recommend this tip

Make your home move-in ready before it hits the market, so buyers know they won’t have a to-do list if they buy it.

Brighten Up Your Home

64.8 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Maximize the amount of light in your home. Take down drapes, clean windows and cut bushes to let sunshine in.

Clear Out Your Closets

63.1 percent of agents say this is a very important tip

1.0 percent of agents don’t recommend this tip

Because storage space is an important consideration for buyers, take half of the stuff out of your closets and neatly organize the rest.

Don’t Take the First Offer

59.4 percent of agents say this is a very important tip

3.4 percent of agents don’t recommend this tip

Don’t get over-excited when you get an offer! Examine each offer carefully and take your time deciding if you want to accept it.

De-Personalize Your Home

57.9 percent of agents say this is a very important tip

2.6 percent of agents don’t recommend this tip

Personal items make it harder for buyers to imagine themselves living in your home. Put family photos, trophies, memorabilia and other personal keepsakes in storage.

Don’t Over-Upgrade

56.6 percent of agents say this is a very important tip

1.7 percent of agents don’t recommend this tip

You probably won’t get your money back if you do a huge improvement project just before you put your house on the market.

Conceal Your Pets

52.8 percent of agents say this is a very important tip

5.5 percent of agents don’t recommend this tip

Pets give the impression your house isn’t clean, so hide them, their litter boxes, food dishes and toys during showings.

Don’t Work With the First Agent You Find

51.8 percent of agents say this is a very important tip

5.9 percent of agents don’t recommend this tip

Interview multiple agents before choosing one to work with. Select your agent based on their marketing plan, experience, work ethic and communication skills.

Hire a Professional Listing Photographer

37.1 percent of agents say this is a very important tip

16.4 percent of agents don’t recommend this tip

Hire a professional photographer to take pictures of your home if your agent doesn’t do so. Professional listing photos only cost $100-300 and can increase your home’s sale price by up to $19,000.

Throw Buyers a Bone to Close Escrow Quickly

29.5 percent of agents say this is a very important tip

10.8 percent of agents don’t recommend this tip

If you want a speedy and hassle-free escrow, throw your buyer a bone (like an early closing or a one-year home warranty) if they ask for one. You want to be in their good graces during escrow and after the sale.

Offer Up Extras to the Buyers

17.0 percent of agents say this is a very important tip

14.7 percent of agents don’t recommend this tip

Offer to leave behind items as extras, like high-end appliances and electronics, or if you live on a golf course, your golf cart.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Tuesday, August 05, 2014

Buying a House? 4 Reasons to DO IT NOW

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 30.8% (most optimistic) and 9.4% (most pessimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although the Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently around 4.2%, Freddie Mac is projecting that rates will increase to 5.2% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way, You are Paying a Mortgage

As a research paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Thursday, June 26, 2014

JUST LISTED - FULLY LEASED TURNKEY FOURPLEX

JUST LISTED - FULLY LEASED TURNKEY FOURPLEX
1805 E Overland Rd, Bldg 42, Meridian ID
Listed at $355,000

2 Bedroom and 1 Bath Units
3380 SF, Built in 2005


Like NEW Fourplex in Meridian, ID. Fully Leased with on site management. Turnkey investment. Centrally located near business parks, movie theatre/restaurant complex, largest regional medical center in SW Idaho and freeway. Development has clubhouse, pool and weight room. Great location within the development, along the back row away from Overland Rd. BTVA If you are interested in Investment Properties in Boise Idaho, Give us a call at 208 939 9033.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Thursday, May 01, 2014

Thinking of Buying a Vacation/Retirement Home? Why Wait?

by The KCM Crew on April 15, 2014 in For Buyers, Interest Rates

The sales of vacation homes skyrocketed last year. A recent study also revealed that 25% of those surveyed said they’d likely buy a second home, such as a vacation or beach house, to use during retirement. For many Baby Boomers, the idea of finally purchasing that vacation home (that they may eventually use in retirement) makes more and more sense as the economy improves and the housing market recovers.

If your family is thinking about purchasing that second home, now may be the perfect time. Prices are still great. If you decide to lease the property until you’re ready to occupy it full time, the rental market in most areas is very strong. And you can still get a great mortgage interest rate.

But current mortgage rates won’t last forever…

According to FreddieMac, the interest rate for a 30 year fixed rate mortgage at the beginning of April was 4.4%. However, FreddieMac predicts that mortgage rates will steadily climb over the next six quarters.

Let’s assume you want to purchase a home for $500,000 with a 20% down payment ($100,000). That would leave you with a $400,000 mortgage. What happens if you wait to buy this dream house?

Prices are projected to increase over the next year and a half. However, for this example, let’s assume prices remain the same. Your mortgage payment will still increase as mortgage rates climb to more historically normal levels.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Monday, April 28, 2014

Want to Sell Your House? Price it Right!

by The KCM Crew on April 14, 2014 in For Sellers

The housing market is recovering nicely. Prices have increased nationally by double digits over the last twelve months. Competition from the shadow inventory of lower priced distressed properties (foreclosures and short sales) is diminishing rapidly. Now may be the perfect time to sell your home and move to the dream house or beautiful location your family has always talked about.

The one suggestion we would definitely offer: DON’T OVERPRICE IT!!

Even though prices have increased by more than 10% over the last year, the acceleration of appreciation has slowed dramatically over the last few months. As an example, in their April Home Price Index Report, CoreLogic revealed that home prices actually depreciated by .08% this month as compared to last month’s report. What concerns us is that Trulia just reported that asking prices are still continuing to increase.

Because investor purchases are declining and there are more listings coming onto the market, we believe that sellers should be very cautious when they price their house. The alternative might be that you could lose money by overpricing your home at the start as explained in a research study on the matter.

Bottom Line

Though it is a great time to sell your house, pricing it right is crucial. Get guidance from a real estate professional in your marketplace to ensure you get the best deal possible.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Saturday, March 29, 2014

On the market again: Boise’s 87-year-old former Macy’s building

Partners worried they wouldn’t be able to find enough people who wanted to live Downtown and could afford apartments.
BY SVEN BERG, Idaho Statesman

sberg@idahostatesman.com February 27, 2014

Affordable housing was the center of the idea by Brad Elg, Jeff Shneider and David Wali for developing the C.C. Anderson Building, which they bought in late 2011.

They wanted to fill the building’s top three floors with 64 apartments that working people could afford. But making the dollars and cents work for the affordable housing would have meant taking federal tax credits to help pay the development cost and pass them on to residents.

With those tax credits come restrictions. For example, the people living in the subsidized apartments can’t be students. They also can’t make above a certain percentage of the area’s average income.

The partners worried that they wouldn’t be able to find enough people who wanted to live Downtown and could afford the apartments — between $540 and $1,040 per month — and who also qualified for subsidized housing, Wali said.

They discussed turning the first floor into a theater for the Idaho Shakespeare Festival. That didn’t work. One of the problems was that the festival would have to raise millions of dollars before work started on renovating the building.

So the partners have decided to sell.

“There’s no use in letting it remain vacant if there’s someone else who might be a better fit for it,” Wali said.

NEW LIFE FOR AN OLD BOISE BUILDING?
The C.C. Anderson Building, located on the northeast corner of 10th and Idaho, went on the market Wednesday. The sellers are asking $2.1 million.

Boise businessman C.C. Anderson built it in 1927 as a home for his department store. It remained a department store until 2010, when Macy’s closed its Downtown Boise location.

Wali said that he and his partners paid only $1 million for the building in 2011 but that they won’t be making any money. He said they put hundreds of thousands of dollars into asbestos removal, planning and structural engineering. He figures they’ll just about break even on the sale.

Wali still thinks housing should be a component of the C.C. Anderson Building’s new life. Offices and retail stores could fill in the rest, he said.

Greg MacMillan, who works for commercial real estate broker Colliers International, is the building’s listing agent. He said the amount of space — more than 115,000 square feet on four floors — makes it attractive for all kinds of development, whether it’s a hotel, housing, offices, restaurants or something else.

“The building is not without its challenges, but the right person — the right buyer — could do something great,” MacMillan said.

Sven Berg: 377-6275

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Monday, March 10, 2014

What is the Cap Rate and NOI on Rental Properties and are they Important?

Found this great blog on Linked by Mark Ferguson posted on March 4, 2014. If you are looking for a Boise investment property such as a fourplex, duplex or commercial investments, please visit us at www.ironeaglere.com.

If you have been around Boise investment properties you have probably heard the term cap rate and NOI.  The cap rate on an investment property is a measure of what the returns will be assuming you pay cash for a property.  I don’t use cap rate on my investment properties, because it doesn’t factor financing costs.  I prefer to use the cash on cash return on my properties, but the cap rate can still give you a basic idea of a property’s returns.

NOI is the net operating income on a rental property and does not factor in debt service.  The NOI can be another indicator of rental property returns, but can also be easily manipulated.

How do you figure the cap rate on a property?

The cap rate is a very simple formula; net operating  income divided by the price of a property.  For example if you buy a home for $100,000 and the net income is $10,000 a year, the cap rate is 10%.  ($10,000/$100,000=10%)

What is the net operating income? (NOI)

The net operating income is how much money a rental property produces after expenses.  This is another simple calculation and can be figured using our cash flow calculator.  The NOI does not include debt service, which our calculator includes, but you can enter the mortgage payments as zero to determine the NOI.  For example if the rents are $10,000 a year on a rental property and the yearly expenses are $3,000, then the NOI is $7,000.

What expenses are included in the NOI?

You will find different investors include different expenses to determine the NOI.  Some investors may include vacancies and property management and others may not.  Some investors may not even include any maintenance in their NOI projections to make their properties appear more profitable.  If you are basing a purchase decision on the cap rate then you need to make sure all the expenses are accounted for.  If the total rent for a property is $10,000 a year and the NOI is $10,000, then there are obviously expenses being left out of the equation.

How can the cap rate vary greatly on the same property?

The NOI greatly affects the cap rate.  If the NOI does not include all expenses on a property, then the cap rate is going to be artificially inflated.  I don’t like using the cap rate as an indicator of returns, because it does not factor into account debt service and the cap rate can be easily manipulated.

Why Cash flow is more important than the NOI

I think the  cash flow on a rental property is much more important than the cap rate.  The cash flow tells you exactly how much money you are going to make including expenses and debt service.  Our cash flow calculator even helps you determine what the maintenance and vacancies may be on a property per month.

Why the cash on cash return is better than the cap rate

The cash on cash return tells you what returns you are getting on your cash invested into a property.  The cash on cash return takes into account the amount of money invested based on leverage.  The cap rate completely ignores leverage, which will make a huge difference in the actual returns an investor sees.  Our cash on cash calculator can help you calculate the actual returns on a rental property including the debt service.

What can the cap rate tell you about different markets?

The cap rate gives a very basic idea of the return rate on rental properties.  If you are looking to invest in long-distance properties, the cap rate can give you an idea of the returns in that area.  Average cap rates in the country can range from 5% to 15%.  There are many other factors to consider when determine where to buy, but cap rate can give you an idea on returns.

How can cap rates help you decide on single family versus multifamily

The cap rates can also give you an idea of the different returns on single family homes versus multifamily homes in an area.  In Colorado the cap rate for a multifamily property tends to be around 5%.  For a single family home you can see cap rates at around 8% in my area.  I buy my properties below market value and see cap rates at 10% or higher on the purchase of my single family rentals.  In other markets those percentages may be reversed on single family and multifamily homes.

Conclusion

The cap rate and NOI can be used to help determine the returns on rental properties, but there are also many other factors to consider like the cash flow and cash on cash returns.  I personally do not pay attention to cap rate or NOI, because it does not giving me a clear picture of my returns.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Friday, February 14, 2014

Millionaires See Real Estate as Top Investment for 2014

Found this great article on Bloomberg Personal Finance

Millionaires See Real Estate as Top Investment for 2014
By Margaret Collins and David M. Levitt  Feb 6, 2014 2:45 PM MT

U.S. millionaires see real estate as the top alternative-asset class to own this year, according to Morgan Stanley. (MS)

About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported today. The S&P/Case-Shiller index of home prices in 20 cities is up 24 percent from its 2012 low.

“After a year where the Standard & Poor’s Index rose 30 percent, some millionaires are moving money out of traditional, long-only strategies to find outperformance, and turning toward alternatives such as real estate and private equity,” said Gary Kaminsky, a vice chairman at Morgan Stanley Wealth Management in New York. “Sophisticated, high-net-worth investors are much more concerned about losses.”

The One57 residential building stands while under construction in New York.
Collectibles ranked as the third-most-popular alternative-investment choice this year, with 20 percent of millionaires saying they planned to buy, followed by private equity at 19 percent and precious metals at 16 percent.

Interest Rates

Wealthy investors see stocks getting expensive and interest rates staying stable or even declining over the next couple of years, Kaminsky said in an interview at a conference for Tiger 21 investors last week in Scottsdale, Arizona. That’s why they are looking more closely at alternatives including real estate for returns and income, he said.

Tiger 21 members, who have at least $10 million in investable assets, increased their average allocation to real estate last year to 21 percent as of the fourth quarter from 19 percent in the first three months of 2013, according to a separate study released by the New York-based group last month.

Will Ade, a Tiger 21 member, said real estate is a particularly attractive investment as stocks show vulnerability in 2014. The S&P 500 has fallen more than 4 percent this year, while developing-country stocks have tumbled on concern that the outlook for economies is worsening.

‘Lame’ Bull

“We had a great bull run last year,” Ade, a 60-year-old geologist, said in an interview today. “I don’t know if the bull is dead, but it certainly is lame right now.”

This year may be the tail-end of attractive investments in property before interest rates rise, said Ade, who has made his money finding oil companies and private investors to fund the drilling of wells. He said he is trying to purchase residential real estate in Miami right now.

“The really good real estate deals are getting harder and harder to find,” Ade said. “Once interest rates start to go up, whether it’s farmland or single-family dwellings there’s going to be huge downward pressure on real estate.”

Foreign Buyers

The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.

Wealthy foreigners have bought high-end U.S. properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.

“It creates competition, which drives the price up for everybody,” he said. “The sellers have multiple channels to sell into. That gives you more liquidity.”

Self-storage properties are among commercial real estate investments wealthy individuals are buying, Kaminsky of Morgan Stanley said. Retail shopping centers are seen as less attractive as more consumers shop online through companies such as Amazon.com Inc., he said.

Chilean Fund

Morgan Stanley Wealth Management surveyed 1,004 U.S. investors ages 25 to 75, with least $100,000 in assets, during the fourth quarter of last year. A third of them had more than $1 million.

BigSur Partners, a Miami-based wealth-management firm, has been helping some of its wealthy clients, who usually have at least $50 million, work with institutional investors such as a Chilean pension fund to invest in commercial real estate, said Chief Executive Officer Ignacio Pakciarz. Deals include an office building in Princeton, New Jersey, he said.

“We don’t feel there’s a lot of value in emerging-market bonds, high-yield bonds and highly rated fixed income,” Pakciarz said.

Owning the real estate is attractive because of the expected appreciation of property value and stream of rental income, as well as better control and supervision over the investments, he said. The firm has also bought office properties in Pittsburgh and Boston, multifamily residences in Texas and some industrial buildings for clients, and is looking for more opportunities this year in real estate purchases or lending, he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Monday, February 03, 2014

5 Ways to Pick the Perfect Time to Sell

I found this article on Trulia by Tara-Nicholle Nelson on January 29th, 2014 about when you should think about putting your Boise, Eagle, Meridian or Star home on the real estate market.

Smart sellers spend a whole lot of time and energy strategizing about how to sell their homes for top dollar. They factor in buyer demand, the competition, the job market, the mortgage market and their agent’s track record. And that doesn’t even account for all the time spent understand recent home sales in the area as an indicator of how local buyers will react to this listing.

Many a smart seller will also try to time their listing just right, too. And most often this looks like waiting until they feel buyers are sufficiently ready, willing, and able to pay a good price for the property. One timing consideration that sometimes gets short shrift is this: the calendar.

There’s a season for everything, as you might have heard. And recent Trulia data revealed some powerful geographically-specific seasonal trends in search activity for homes, adding proof to what agents have long known – the calendar portends various shifts in buyer activity, which sellers need to note. If you’re gearing up to list your home for sale, you should definitely take advantage of this interactive tool we’ve created to help you understand how these shifts play out in your area, and connect with your agent to discuss whether and how you might want to factor that into your home sale action plan.

But there are also a number of calendar-based factors you should just be thoughtful about as you put your plan for selling together. Here are a handful of calendars that should be – and stay – on every home seller’s radar screen:

1. The Academic Calendar. Families with school-aged children often find it less disruptive to house hunt in the late Spring/early Summer with the aim of moving in before school starts. Of course, we all know what they say about the best laid plans, so by no means should you let this stop you from listing your home at another time of year. Just know that demand for homes with convenient proximity to strong schools can uptick during the summer school break and around other times of year when kids are not in school.

2. The Tax Calendar. I cannot count the number of relatively unmotivated, looky-loo type buyers I’ve worked with over the years who got sudden, intense motivation from a massive, looming tax bill. For instance, many new professionals will seek to close escrow on homes between the time they graduate and the end of that same year, in an effort to deduct their closing costs and mortgage interest from their newly large incomes and avoid a big tax bill the following April. Similarly, just after tax time in April, a flood of newly motivated buyers come into the market, advised by their CPAs that the mortgage interest deduction is their best bet for not having to write as big a check to the IRS next year.

Fortunately for sellers, more buyers and more motivation means more demand and – all other things being equal – can translate into a faster sale at a higher price than at other times of the year.

3. The Weather Calendar. Many sellers who live in cold-weather climates are aware that wintry weather conditions can dramatically cut down on the numbers of buyers who are out viewing properties. This is why buyer searches for homes on Trulia peak earliest, in January, in warm-weather states like Hawaii and Florida – and not until after the Spring thaws in the Midwest, the South, the northeast and most of the West.

But what’s not as obvious is that the combination of what’s happening on the weather calendar and the specific features of your home can interact to impact your home’s prospects for sale – and its ultimate sale price. Behavioral economics researchers have found that homes with swimming pools sell for more in the summertime than they do in the winter. “When it is sweltering outside, a swimming pool just looks attractive. There’s an emotional connection because it reminds us of fun times we have in the summer,” said Jaren Pope, one of the study’s authors and an assistant professor of economics at Brigham Young University.

So, if you’re selling a home with ski slope access in the summer, you might want to paint the picture of a cozy, fun-filled winter by staging the place with ski gear and other items that help prospective buyers visualize how much fun they’ll have when winter comes. And vice versa -if you’re selling a pool house in the winter, consider making sure it is steamy and heated, if it has those features. Stage it with lounges, towels, lights – anything that showcases the pool to offset cold-weather buyer’s psychological tendency to discount the appeal of a pool in the winter.

4. The Holiday Calendar. During the holidays, many buyers simply prefer to spend their downtime celebrating with family and friends vs. house hunting, especially in locales where the winters are wet or cold. Our listing search data backs this up: nationwide, December is the slowest month of the year for home searches, and November is the second-slowest.

Does this mean the holidays are a bad time to have your house on the market? Not necessarily: some homes just show beautifully when all lit up and tastefully dressed up for the holidays. And the truth is that there is a hardy contingent of buyers motivated to close by year’s end for tax purposes, every year in every market. While buyers might be fewer in number, those who will brave rain, sleet and snow and forego holiday parties to house hunt can be some of the most motivated buyers of all.

5. The Gregorian Calendar (the regular old January through December calendar, that is). A survey just released by Fidelity Investments revealed that 54% of Americans said they typically consider setting New Year’s Resolutions related to their personal finances. This year, 26 percent of respondents said they are in a better financial situation today than last year (only 19 percent said so in 2012) and 28 percent say they are less in debt (vs. 25 percent in 2012).

Home buying tends to be a popular resolution among those with money on their minds at this time of year – and also among people looking forward to career promotions, developing their love and family relationships or relocating to a new home town. Make sure your home is well-represented on sites like Trulia at the beginning of the year (i.e., now!), when these life and financial change visionaries start searching the web for their next nest.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Tuesday, January 14, 2014

3 things to know about interest rates in 2014

Found a great article on Interest Rates for 2014 on housingwire.com. This definitely pertains to investment properties in Boise ID

3 things to know about interest rates in 2014
Whether they rise or not, things are going to change

By Trey Garrison January 10, 2014 5:07PM

Interest rates will go up. Or they will stay the same. One of those two things will definitely happen in 2014, economists say, and some lenders and investors may have trouble adjusting to the change.

"We think rates are generally headed up. We have a growing economy both here and aboard,” said Mike Fratantoni, chief economist for the Mortgage Bankers Association (MBA). "We’re going to get some differing data like today’s jobs report which was off, but the next jobs report may see employment up. We are anticipating the job market is going to grow in 2014 and the recovery will continue."

Further, he said, a longer-term factor will be that a growing federal deficit will put upward pressure on rates. And third, the Federal Reserve has already made it clear that if U-3 unemployment goes below 6.5%, it will let rates rise.

"We expect that in the third quarter the Fed will stop buying MBS and Treasurys, and start raising interest rates," Frantantoni said.

MBA is projecting interest rates on the 10-year Treasury yield to go from 3% in the first quarter of 2014 to 3.3% by fourth quarter of 2014, averaging 3.2% for the year, and then creeping up to 3.5% by the last two quarters 2015, averaging 3.4% for 2015.

MBA projects that 30-year fixed mortgage rates will go from 4.7% in the first quarter 2014 to 5.1% by the end of the year, and continuing a slow rise to 5.3% by the end of 2015.

Conversely, economists at international macro-economic research firm Capital Economics say they don’t expect interest rates to rise and that the Fed will keep a tight, tight leash on rates through 2014.

"The world economy has entered 2014 with a lot more momentum than it had a year ago. Business and consumer confidence have improved and unemployment is falling rapidly in several countries. However, while this should eventually prompt central bankers to raise interest rates, we do not expect significant hikes this year," the firm states in its Global Central Bank Watch report. "Instead, the Fed and Bank of England are likely to leave rates unchanged even after unemployment falls below their current thresholds, while both the ECB and the Bank of Japan look set to announce additional policy stimulus."

"The acceleration in growth over the past twelve months or so has been particularly strong in advanced economies In principle, this should pave the way for policy- makers to raise official rates from their current exceptionally low levels, particularly given that some central banks – notably the Fed and Bank of England – have explicitly linked future hikes to progress in reducing unemployment," the Capital Economics report states. "In practice, though, the four major central banks in advanced economies are likely to continue to tread very carefully in withdrawing stimulus, let alone actually tightening policy."

One big concern outside the housing and mortgage universe is that if interest rates rise too high, it could essentially bankrupt the U.S. treasury. The Fed is now printing 29 cents for every dollar the U.S. government spends, and servicing the national $17.3 trillion debt is costly even with low interest rates.

A study last fall by the bipartisan Committee for a Responsible Federal Budget said total interest payments on the federal debt in 2013 were approximately $255 billion. That’s based on the Treasury paying 0.01% on three-month bills and 2.98% on 10-year notes, as opposed to the historical average of 3.3% and 5.2 % respectively.

Frantantoni said typically the Fed has made it clear to the Treasury that it will focus on price stability rather than financing the debt, although he acknowledges there is a concern that interest payments on outstanding federal debt could be an issue. Economic growth concurrent with rising interest rates would serve to ameliorate these concerns through increased tax revenues and stronger job growth.

"We’ve had a couple of unusual years, and a lot of folks in the Fed would like to get back to the role of just minding monetary policy,” he said.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.
PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! 
Click Here to Pre-Qualify for a Loan Online!

IERT logo
Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

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