Latte Lou’s List

After many years on Hilton Head Island I’m sharing some of my favorite places to eat.
There are many other good restaurants but these are the ones I consistently frequent.

Enjoy!
Lu

AMIGOS CAFE Y CANTINA
Circle Center 785-8226 & Belfair Towne Village 815-8226
Open everyday 11 to 9
My favorites: BBQ chicken salad & Chicken fajita burrito.

SANTA FE CAFÉ
700 Plantation Center 785-3838
Lunch M to F 12-2 Dinner M to Sun 5:30 to 10
Upstairs outside is the best spot. Great food.

CHRISTINE’S GO GO GOURMET & CAFÉ
Coligny Plaza 785-4646
Open M-F 11 to 2
It’s all good – especially the homemade potato chips.

SEA SHACK
Pope Ave. Executive Park Rd. 785-2464
Open Lunch M to F & Dinner M to Sat
Very casual but lots of seafood cooked anyway you like it.

FRANKIE BONES
Main Street 682-4455
Open everyday 11:30 to 10 or 11 w/ Sunday Brunch
From soup (chicken noodle) to nuts – great menu & fun bar.

SIGLER’S ROTISSERIE & SEAFOOD
Sheridan Park, Bluffton 815-5030
Dinner 4:30 to 9:30
Great Chef & Caterer. Don’t miss the Grilled Romaine Salad.

SIGNE’S BAKERY & CAFÉ
93 Arrow Road 785-9118
M to F 8 to 4, Sat 9 to 2
Casual & fresh food with full scale bakery on site.

STARBUCKS COFFEE
Pineland Station, 11 Palmetto Bay Rd
1060 Fording Is Rd, Bluffton
The ONLY place for coffee!

GRUBY’S NEW YORK DELI
Hwy 278 @ Fresh Market Shoppes 842-9111
Open everyday 8-6
Great breakfast and sandwiches – jut like I grew up on.

HINOKI JAPANESE REST. & SUSHI BAR
Orleans Plaza 785-9800
Lunch M-F & Dinner M-Sat
My only Sushi Bar… love the Wizard.

TRUFFLES CAFÉ
Sea Pines Center 671-6136 & Belfair Towne Village in Blftn
8 Executive Park Rd 785-3663
Fun, consistently good food.

IL CARPACCIO RISTORNATE PIZZERIA
Pineland Station 342-9949
Open L & D Monday to Sat.
It’s all good. Don’t miss the grilled Trout & thin Pizzas.

THE INN @ PALMETTO BLUFF
Off Hwy 46, 866-706-6565
L & D but call for reservations.
The food, ambiance & river views all make up for the drive.

WALNUTS CAFE
Sheridan Park, Bluffton 815-2877
Open M to F 8 to 3 Sunday Brunch 10 to 2
No reservations – great food, friendly place!

IT’S GREEK TO ME
16 Orleans Rd. 341-3556
Open L & D Monday to Sat.
Casual, great Greek food.

NEWLY ADDED… BISTRO 17
17 Harbourside Lane, Shelter Cove
Open every day 11 to 9
Sit outside along the boat basin and enjoy fine food.

MAINLY SANDSTONE – GOURMET GRAB & GO
35 N. Main St. 681-5721
M to F 8 – 6 & Sat 10 to 6
Great fresh food – catering also

KENNY B’S FRENCH QUARTER CAFÉ
GRAB & GO
Circle ctr. On Pope Ave 785-3315
Open T-Sat 8:45 to 9, Sun Brunch 8-3, Mon. 11 to 8.
Brunch is the BOMB & the Gumbo’s my favorite w/ ½ po-boy.

LE BISTRO
Pineland Station 681-8425
Open Lunch Tues. to F & Dinner Tues To Sat.
It’s been here forever & always serves great Mediterranean food.

MICHAEL ANTHONY’S CUCINA ITALIANA
Orleans Plaza 785-6272
Open Dinner only Mon. to Sat. (Reservations suggested)
Because it’s great fine dining – great wine list too.

If you are ever looking for something specific,
please feel free to email Jane or I at islandrealtor@hargray.com.

Dear Future Buyers,

If you are thinking of buying property now or in the near future on Hilton Head Island, don’t take a chance on time. The real estate market is dishing up some fabulous properties that not only offer incredible pricing with impeccable condition and fabulous locations. That said, below is a true story about waiting to buy.

In 1986, I met Ron a potential buyer for a second home near the beach at our furnished Huntington Model. Ron was my first real contact with an IBM engineer. Ron was a pipe smoking, Volvo driving analytical. Needless to say, for the next three years we spoke on the phone or met numerous times reviewing square footages, villas for sale, homes for sale and compared price per square foot as it related to location to the beach.

I should also mention that in those years, inventories were high and prices were still adjusting as the 1986 tax laws changed the deductions allowed on multiple properties. We were in a market pretty much the same as we are today. Finally after three years Ron settled on the place we first met, a three bedroom Huntington Villa. I believe he got a furniture package included, but paid pretty much the same price he would have paid in 1986. The one thing Ron did lose while we over analyzed the market was the time he could have had with his wife and grand children enjoying it.

A few years passed by and I saw Ron again and we laughed about our search together and the formulas we developed. I asked him how the villa was working out and did he have any regrets. He told me then that the only thing he regretted was not doing this three years earlier. To finish the story, a few years ago I had a call from Ron’s wife to tell me that he had passed away.

How much time are you willing to lose waiting for a sign, or the right time or the right price? You just cannot take a chance on time and when you are finally ready, I now have all the formulas thanks to Ron!

Hilton Head Real Estate

Did you know that we have placed our properties on over 28 web sites worldwide?  There is not an agent or company that lists their properties on more web sites.  This takes both time (Jane’s) and money (mine), but gives our properties incredible exposure.  Just one of these web sites gets our properties in front of:

• 700 firms
• 5,500 offices
• 170,000 sales associates
• 38 countries world wide.

We receive regular referrals from this web site from agents all over the world that have clients moving into the area.  We pay them a referral fee upon the successful closing from our commission.  

As the use of the internet continues to increase in every day real estate searches we want to increase our exposure of our properties.  Today, we have subscribed to a company that will provide several virtual tours of each property we have listed.   Our research shows that buyers spend more time looking at a property that offers great photos and virtual tours.  

By the way, the virtual tour company that we have chosen will also post our properties on their web site which is ranked in the top 15 real estate web sites worldwide.  Our properties are listed on many of these web sites including the number one web site REALTOR.COM which we upgraded to a premier level.  

We are working hard to market our properties.  Thank you.

Our best~

Robbie Bunting 

& Jane Hyers

Dear Friends, Clients, and Fellow Associates~

Trades allow sellers and buyers to move faster in a slow market.  Many of our clients do not know how the trade works and the benefits a trade offers.  I have found many sellers initially say no to a trade only to accept a trade once they fully understand the opportunity they present.  Here are just a few benefits my trade down sellers have experienced:

1. Principle reduction 
2. Cash out
3. Lower fees associated with ownership  

Trades only work when you have a buyer and seller that work from an appraised value, a retail value or a wholesale value.  Buyers and sellers must work from the same value method or same page.  A one sided trade never works.  That said, here are my latest and greatest trade properties:

• #8 Port Tack in Palmetto Dunes(4 bedroom beach home listed @$1,950,000) will trade for a home in Leamington or Indigo Run at $1,000,000 or less.
• #213 Turnberry Village/PD(Golf 2 BR townhome listed at $329,000)
  Will trade for a 3 or 4 BR Villa up to $600  in Palmetto Dunes
• #5 Penninsula/HP(Oceanfront/golf 5BR home listed at $1,895,000.)
  will trade for improved commercial around the country
• #378 Fort Howell/Palmetto Hall(4 bedroom home listed at $599,000) 
   will trade for a 2 bedroom villa up to $350,000
• #219 Jonesville Road(Large lot with private dock at $525,000)
  will trade for a rental property(home, villa or commercial)
• #121 Dune Lane(Brand new oceanfront 5 BR Home listed at $3,999,000)
  Will trade for an oceanfront lot/teardown or oceanfront villa or apartment complex
• #37 River Club(Deepwater access home w/5 Bedrooms offered at $2,195,000) will trade for  a waterfront villa in Shelter Cove listed at $500,000 or less.

We have properties offered by sellers that will trade throughout the area.  These properties include  homes, villas or lots that may have interest in trading.  If you have interest in finding out  more, please email us at robbie@robbiebunting.com.   Thank you. 

 Happy Trading !
Robbie Bunting &
Jane Hyers

www.robbie@robbiebunting.com

The Next 5 To Sell!

Based on Criteria of Price, Condition & Location

Please visit our website www.robbiebunting.com for the

Newest home and villa listings on Hilton Head Island.

843-842-0805  •  800-932-3652

Robbie@RobbieBunting.com •  www.RobbieBunting.com

Hi~

Below are the market trend statistics for February 2009 which include Hilton Head Properties only.  

We are seeing activity in all residential price points…although the sales over 2 million are still slower with very high inventories which means prices will be correcting on the less than premier locations for the age/condition challenged properties.  

The good news is we sold 39 homes in February compared to 26 homes in January, 37 villas in February compared to 33 villas in January and vacant home sites are still sitting as a result of homes selling below replacement cost.

According to the market research I have completed, the number of properties for sale will start declining in coming months in the residential markets on Hilton Head Island.  If you have ever thought of purchasing it is our suggestion to start looking for the choice property you’ve always wanted as the best picks will be disappearing as we move through 2009. 

Our Best,

P.S.  Please feel free to share this with our contact information.  Thank you.

Marshland and Jonesville Road Communities

In January 1997 the Cross Island Parkway opened the doorway to Marshland, Spanish Wells and Jonesville Roads.  Marshland Road runs through the geographic center or Hilton Head along Broad Creek.  New gated communities include Broad Creek Marina Village, Tidewater Landing and Edgewater.  Existing communities include The River Club, Broad Pointe, Cross Winds, Summer House and Bridgetown. 

 Marshland Road

New ~ Broad Creek Marina Village

• Single family Community with 37 home sites total ~ 3 sold
• Priced from $149,900 (forest) – $599,900 (deepwater)
• Amenities – Gated Village with access to marina, restaurant and pub.  Three years of free boat storage with purchase.  Up to 90% financing, no time limit to build.
• This property is an authentic fishing village with magnificent village architecture.
• POA ~ $500 

New ~ Tidewater Landing

• Single Family Community with 5 deepwater home sites ~ 1 Sold
• Priced at $1,995,000 per home site.
• Gated.  Each  property includes a boat dock and covered pier head
• Todd Hawk (Owner of H2 Builders) is nearly complete on construction of his family’s personal residence on Lot #1. This magnificent 9,200 Sqft Tuscan Estate will set the standard for the rest of the community.
• POA ~ $5,500 includes maintenance of fence gate etc., Landscaping in common areas, Irrigation insurance of such and building a capital reserve.

 Edgewater

• A villa community with the 1st of 6 buildings completed and all 23 units sold.
• Resale prices range from $595,000 – $850,000
• Amenities include 24 hour security, tennis courts, clubhouse with workout equipment, pools, Jacuzzi, dock to Broad Creek, playground
• No short term leases, Monthly regime fee only $523 with no increase for the past 4 years.

Spanish Wells and Jonesville Road Communities

If you wish to discover the local flavor drive down Spanish Wells and Jonesville Road.  Of course, you will drive by the goats and chickens, but you will also discover some small intimate upscale communities with beautiful new homes.  The new communities include The Paddocks, Shearwater, Bryant Park, Seagrass Landing and Jarvis Creek Club.  Here are some of the joys these areas offer:  magnificent marsh views, birds feeding at low tide, horse trails, tranquility, quiet, peaceful, sunsets, hidden gems on a bustling Island with cozy living at it’s finest

New ~ The Paddocks

• Number of Properties/Number sold- 73 total lots, 44 sold.
• Price Range – $295,000 – $950,000 – depending on size & view.
• Amenities – 1.  Pool & Clubhouse.  2.  Children’s playground & outdoor fire pit.  3.  Lake – Dock for fishing or boating.  4.  Horse Stables/Trails.   5.  Private Island for picnicking & relaxing.  6.  Walking trails.
• Vision or story about Development – The Paddocks is modeled after upscale, traditional beach communities of Florida Architectural Guidelines with wood columns, balconies, verandas, metal roofs, wrought iron accents and terraces.
• POA ~ $1391.50

New ~ Shearwater

§         Number of Properties/Number Sold- 37 properties / 31 sold

§         Price Range from  $169,000 for lagoon view to $499,000 for deepwater view.

§         Amenities~ Peace and quiet. Gated. Community dock

§         Vision or Story about the development:  Shearwater is to Jonesville Road as the Florida Keys was originally to Florida: A quiet, peaceful enclave and a destination with views worth the drive.

New ~ Jarvis Creek Club

·    Number of Properties/Number Sold – 86 Single Family Home sites

·    Price Range $99,000 – 329,000

·    Amenities ~ 20 acres with lagoon and marsh views with a total of 86 home sites. Gated entry flanked by two mature live oaks, fresh and salt water ponds, street lights, and a pool complex that will be finished once we have our first home owner.

·    The vision behind the Jarvis Creek Club development was to offer a family oriented neighborhood with new and exciting floor plans at an affordable island price.

·    POA ~ $1000

·New ~ Abbey Glen

·    Number of Properties ~ 40 total (8 Carriage Homes, 32 Courtyard Homes)

·    Carriage Home: 2600 sqft and 400 sqft lanai, 3bed/3bath, 2 story, marsh views, 1^st fl masterbed, 2^nd story deck

·    Courtyard Home: 1850 sqft and 300 sqft courtyard (screened in), 2bed/2bath, den, center room fireplace

·    Price Range $529,900-700,000

·    POA $575-630/month (Insurance included)

·    Amenities:  Private Clubhouse (3000 sqft) with pool and fitness center, homeowner access 24/7.  Maintenance Free exterior and landscape.  Gated entrance.  Vision or Story about the development.  First 55+, Gated, Maintenance free community on the Island.

“The first Time Homebuyer Tax Credit” will benefit some Palmetto Dunes Properties.   Eligible purchasers that have not owned a home for 3 years with incomes that do not exceed $75,000 per year ($150,000 on joint returns), will be illegible for an $8000.00 tax credit with no repayment requirement.  Even though this may not apply to you, the “real estate food chain” will start moving again which will in turn produce more real estate activity and sales in our communities including Palmetto Dunes, Leamington and Shelter Cove.   

Real estate IS selling on Hilton Head Island despite the economy and media.  In Hilton Head, South Carolina MLS there are 310 pending listings this month that means that in the next 30-45 days there will be 310 more homes SOLD!!! If you take an average price of $616,743 that means the people who have come to Hilton Head and loved all that they saw and experienced, have spent $191,190,330 in one month on these 310 homes, villas and lots!  Now, that’s what we call stimulus!  

The Arts Center of Coastal Carolina at Shelter Cove Did you know that an art director from Sesame Street designs one set a year for us?  His name is Bob Phillips and he’s known for detail.  He even takes the time to design areas of the stage that are only seen by part of the audience.  There are 5 shows each year and the view is great from every seat in the house.  They are all wonderful!  Aren’t we lucky to have “Broadway” right in our own community?  See you there!  

How healthy is your Palmetto Dunes, Leamington or Shelter Cove regime?  Villas / condos have a monthly “regime fee” which may include landscaping, pool, , pest control, exterior maintenance,  insurance, etc.  If you are looking at a condo or villa it is a good idea to check the “health” of the regime to make sure there are no pending assessments and that there is plenty of working capital.  Your experienced full time REALTORS at Dunes Marketing know the ins and outs when it comes to villas on the Island.  

Make plans now  to watch or attend the 2009 Verizon Heritage Golf Tournament.  The Verizon Heritage Golf Tournament is South Carolina’s only PGA event and will be played at the Harbourtown Golf Links in Sea Pines April 13-19, 2009.  For more information and tickets visit to www.verizonheritage.com .  For accommodation packages and information on our incredible real estate contact your Dunes Marketing Group agent.  Hope to see you there!  

Back In The Saddle Again.  Stocky Low Country Marsh Tackies made a triumphant return in Hilton Head Island’s first marsh tacky races in 40 years.  Fifteen marsh tacky horses raced on the brown, wet sand of low tide at Mitchellville Beach as part of the island’s Gullah Celebration.  It has been more than 40 years since the short, stocky breed has galloped beside Port Royal Sound.  It was the revival of a longtime Gullah and native islander tradition.  The race was attended by more than 3,000 spectators.   

Dunes Marketing Group is an upside down sales company.  In an economy like this one, other real estate companies call on Dunes to bring a buyer to their listings.  While we promise to do our best, our first priority is to see if we can find buyers for our own listings.  After all, that’s why our sellers listed with Dunes Marketing Group. We are an upside down real estate company because we have more buyers than listings which is different than most other companies around the island.  In fact…we need more listings to sell!                                         

The Hilton Head Area Hospitality Association will host the popular Wine Fest. The big event will be held on Saturday – March 14th at the Coastal Discovery Museum at Honey Horn. In addition to the public wine and food tasting the Junior League of Savannah is hosting a Pie Baking Contest, Hilton Head Kitchen & Bath will sponsor the Tailgate Gourmet Challenge, and there will be much more.  This is a festival that you won’t soon forget. For tickets and details visit www.hiltonheadhospitality.org  and click on Wine Fest.   

 Palmetto Dunes Outfitters…  just had their annual Oyster Roast Fund Raiser January 28^th for restocking redfish in our lagoon.  Approximately 1,500 – 2000 redfish will be released in April.  “Black drum fishing has been the best I’ve ever seen in January & February with catches from 5-20 lb” according to Captain Trent Malphrus.   

Dunes Marketing Group would like to sell your property  We have the buyers (over 400 percent more than our closest competitor), we talk with guests and walk-ins that are staying in Palmetto Dunes daily and want to know what is on the market.  As a real estate group, Dunes Marketing Group Tours tours their listed properties weekly.  Call us today for a free analysis of your home or villa.  

            I’m proud of our numbers and I just want you to know!   In 2008, Dunes Marketing Group participated in 39.8% of all transaction in Palmetto Dunes with our next closest competitor only 11.9%.  That’s 75% more transactions than our closest competitor!  More than ever it’s important to look at results. Numbers speak louder than words! 

Palmetto Dunes gets a new Oceanfront Restaurant.  The Dunes House (Inside Mariners Gate) is going to be open for dining in April 2009.  Now visitors and owners will have a convenient access to lunch or dinner oceanfront within Palmetto Dunes.  Overlooking the Atlantic, this location will offer outside decks and inside dining.  We will be publishing hours and menus in our next publication.    

“When Property Is “Priced to Sell”, It Sells!”  Right now there are many homes, villas and lots on the market that ARE NOT, as we say in the real estate business, “PRICED TO SELL”! Owners who list their property for sale should remember that their competition includes foreclosed properties and comparable properties that have been pre-approved by the owner’s lender to sell for LESS THAN WHAT IS OWED ON THE MORTGAGE!  Can you compete with these owners on price and do you really need to sell?  If the answer to both questions is a resounding “NO”, then NOW IS NOT THE TIME TO SELL YOUR PROPERTY.  

 Palmetto Dunes Resort has it ALL!  When it comes to Hilton Head Island events, Palmetto Dunes offers a wide range of conference and event venues and multiple meeting facility options for corporate events, weddings, family reunions, social gatherings, luncheons and dinner parties. In-home chef services and catering are available for guests who would like to enjoy a custom meal prepared by a personal chef or a romantic dinner at a private villa. From social events to special events, Palmetto Dunes has every detail covered.

Obama Unveils Homeowner Affordability

and Stability Plan

Revised February 24, 2009

President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes.Refinancing Initiative

Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth. Stability Initiative

This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.

The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.

Many of the plan’s details are still being worked out and will not be announced until March 4, here is an overview of the plan’s main components.

According to the plan, “credit-worthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.

As with the rest of the plan, details about this initiative will be released at a future date—including what, if any, credit score requirements will be included.

The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to lower homeowners’ payments to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.

Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.

Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders alike, including:

• Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
• Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

Supporting Low Mortgage Rates

As part of the Homeowner Affordability and Stability Plan, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability. This portion of the plan will use using funds already authorized in 2008 by Congress for this purpose.The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.Again, the government plans to unveil the final details of the plan on March 4, 2009. For now, you can download a sheet of common Questions and Answers produced by the government at: www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdfI will continue monitoring the plan as new information becomes available. If you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

Why Now is Good Time to Buy!

By Beth Hornick

SunTrust Mortgage

Many potential home buyers are waiting to finalize their decision to buy a new home. With news reports of falling home prices and increased foreclosures– it seems smart to wait. According to predictions from Freddie Mac, housing prices are predicted to drop approx 10% in 2008. BUT, if you pull out the “big 4” (California, Michigan, Nevada, and Florida)- the figures revises to less than a 5% drop. South Carolina and the Hilton Head area in particular, is an area with smaller drops in prices when compared to the national average.

Rates are now at near record lows with 30 year fixed rate loans hovering just around 6.00% for conforming loan amounts. Historical comparisons say rates typically drop about .25% BEFORE the election and RISE after .60% the election.

So, what is the best time to buy? Now, when rates are low? or wait till housing prices drop further? Many buyers seem to be emphasizing dropping housing prices. But, waiting for prices to fall can COST you money!

Here are two examples:

EXAMPLE ONE-Assume a mid level purchase price. These are the homes that should drop a MAXIMUM of 5%.

Current Price                                                             $300,000

Mortgage Amount (assumed 20% down)              $240,000

30 year fixed rate of 6.0% P & I payment               $1,438 per month

Assumes a 20% down, 30 year fixed rate mortgage at 6.00% (6.043% APR)

359 payments of $1,438.91 and 1 payment of $1,440.30

Assume 5% price drop                                            $285,000

Mortgage Amount                                                     $228,000

30 year fixed rate of 7.00% P & I Payment            $1,517 per month

Assumes a 20% down, 30 year fixed rate mortgage at 7.00% (7.047% APR)

359 payments of 1,516.89 and 1 payment of $1,516.16

An increase of $80 per month- that’s $28,800 over the 30 years! A 10% loss In this case- the 5% housing price drop COSTS the buyer over 10%!

EXAMPLE TWO- Assume a higher priced home. These are the homes that should drop a MAXIMUM of 10% (factoring in higher loss states– SC drops are predicted to be smaller)

Current Price                                                             $1,000,000                        Mortgage Amount (assumed 20% down)                          $   800,000

30 year fixed rate of 6.5% P & I payment               $5,056 per month

Assumes a 20% down, 30 year fixed rate mortgage at 6.50% (6.513% APR)

359 payments of $5,056.54 and 1 payment of $5,061.33

Assume 5% price drop                                            $950,000

Mortgage Amount                                                     $760,000

30 year fixed rate of 7.50% P & I Payment            $5,314 per month  

An increase of $258 per month- $92,880 over 30 years! A 9.8% loss.

Assumes a 20% down, 30 year fixed rate mortgage at 7.50% (7.515% APR)

359 payments of $5,314.03 and 1 payment of $5,314.45

Assume 8% price drop                                            $920,000

Mortgage Amount                                                     $736,000

30 year fixed rate of 7.50% P & I Payment            $5,146 per month  

An increase of $90 per month- $32,400 over 30 years! A 3.5% loss.

Assumes a 20% down, 30 year fixed rate mortgage at 7.50% (7.516% APR)

359 payments of $5,146.22 and 1 payment of $5,144.38

Assume 10% price drop                                          $900,000

Mortgage Amount                                                     $720,000

30 year fixed rate of 7.50% P & I Payment            $5,034 per month  

A drop of $22 per month- $7,920 over 30 years. A 0.9% gain.

Assumes a 20% down, 30 year fixed rate mortgage at 7.50% (7.643% APR)

359 payments of $5,034.34 and 1 payment of $5,040.59

In this example- housing prices would need to drop at least 10% before it would offset the predicted rise in rates. And 10% was the MAX decrease predicted!

These assumptions also assume a maximum interest rate rise of 1.00% over today’s rates. If rates rise higher or faster than predicted– the cost of waiting to buy will increase.

Another factor to consider is the increased inventory of homes available right now. Buyers have a larger choice of homes than any time in the recent past. But, what about all the foreclosures that the media says are coming up? Again, South Carolina and the Hilton Head area are predicted to have much lower rates of foreclosures than the national averages.

Also consider also what most foreclosed homes will look like. If a home owner does not have the money to make their mortgage payments– will they have the money to continue the necessary upkeep of the home?  And in many cases– there may also be outstanding liens for real estate taxes or Association fees. Trying to negotiate with a lender to buy Bank Owned Real Estate can make the process more difficult and few if any repair items will be done. In many cases, foreclosures are not the best deal out there.

So what should a potentional home buyer do? Buy now and save money!