According to Bankers & Tradesman the Boston real estate market has finally hit bottom.

…Sure, condo prices and sales finally slowed in downtown Boston, but Dorchester, Roxbury, East Boston, Mattapan and Hyde Park saw thousands of homeowners fall behind on their mortgages over the past few years, many losing it all.

But here’s one key sign: The number of foreclosed homes sitting empty and inviting trouble in these neighborhoods has fallen dramatically, reports Evelyn Friedman, head of the Department of Neighborhood Development.

So, what does this mean for you?  Well simply put the time to buy is right now.  If you have been waiting for the “bottom” this is it and slowly pricing will begin to increase.  If you are in the market for a new home please contact a Warren agent, we look forward to helping you.

South Boston has traditionally been popular among young professionals due to its abundance in condos and apartments for rent, as well as its accessibility to downtown Boston. It’s also interesting to understand the surrounding conditions of our current listings in relation to the future of South Boston Real Estate.

While the market continues to fluctuate, Mark Strickland of www.bostonrealestateobserver.com notes that the current real estate market trends for the South Boston neighborhood potentially weigh in favor for both the seller and buyer. Strickland defines these advantages as follows:
•    Seller Advantage Market – there is currently less than a six (6) month supply of homes for sale
•    Buyer Advantage Market – there is currently more than a six (6) month supply of homes for sale

As of January 21st, 2010, all condos priced at or under $499K in South Boston are in a Seller Advantage Market, whereas all other condos are in a Buyer Advantage Market. All multi-families are in a Seller Advantage Market, as are single-family homes priced under $499K. Single-family homes priced between $500K and $749K are in a Buyer Advantage Market.
While this data shouldn’t indicate that there are NO exceptions, it provides a good understanding of where the market is and where you can go from here. Stickland further explains his terminology: “In a Seller Advantage Market, a particular owner may be flexible on price if there are mitigating circumstances such as a pending relocation, or the pre-purchase of another home. Similarly, in a Buyer Advantage Market there are always going to be sellers who are unrealistically inflexible on their price because they are in no hurry to sell, or still unrealistically believe that their home is worth far more than it actually is.” He also recommends hiring a good Marketing Agent or Buyer’s Agent to understand your individual circumstances within the larger context of your neighborhood’s market conditions.

(This data was compiled through a 12-month rolling calendar from December 2008 to December 2009 for condos, multi-family and single-family homes. You can find more information on additional Boston neighborhoods in the full article, here)

Also make sure to check out our selection of available South Boston Apartments!

THIS WILL NOT LAST!

It’s rare that a investment property in Boston actually makes sense as a cash flow vehicle.  Most investments (I can hardly even call them investments) in Boston require a near all cash purchase to make any kind of return!  This is not one of those cases.

Description from MLS:  SIX FIGURE ANNUAL INCOME through 9/1/10 with all young professional tenants!! Meticulously maintained with four levels of living located on a quiet dead-end street just a short walk to the “T”, buses, Allston restaurants, bars, and shopping!! Spectacular top floor features cathedral ceilings, skylights, granite kitchen and spiral staircase leading to an attic loft!!

This property comes fully leased until 9/1/10 with young professional tenants so you are buying into cash flow right off the bat.  Having it on the September schedule is going to make it easy to get it leased out until 2011 as well (our rental brand Warren Rentals can help you with this!).

The Numbers:

Price:  $915,000

Amount you would put down:  $274,500 (30%)

Amount Financed:  $640,500

Monthly Income: $8,340

Monthly Expenses: $831

Monthly Tax: $450

Monthly Debt Service (Your Mortgage Payment): $3737 (this is using an estimated 5.75% interest rate)

Total Monthly Cash Flow After Expenses and Debt Service:  $3322

Yearly Cash Flor:  $39,864

ROI: 14.5% not including tax deductions or appreciation which could add another 4-5%

A lot better than the stock market, plus it’s backed by a tangible asset, real estate!

To view this property or others in the Boston area that actually make sense, please call Nick Warren at 617-933-9776 or email at nwarren@warrenre.com

Going green pays and saves.  According to a study by the Joint Center for Housing Studies of Harvard University, for every dollar decrease in annual home energy expenditures, house values increase between $11.63 and $20.73.

Also, going green can lower the tax bill.  New federal tax credits are now available for green home improvements on a principal residence.  Qualifying modifications must meet a certain energy efficiency level to be eligible for the credit.

The credits are available for improvements purchased and in service from January 1, 2009, through December 31, 2010.  The amount of the credit is deducted from any income taxes the homeowner may owe. The credit is nonrefundable, allowing taxpayers to lower their tax liability to zero, but not below zero.

Tax credits are available at 30% of the cost, up to $1,500, in 2009 through December 31, 2010 (for existing homes only) for:

• Windows and Doors
• Insulation
• Roofs (Metal and Asphalt)
• Heating, Ventilating, and Air Conditioning (HVAC)
• Water Heaters (non-solar)
• Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through December 31, 2016 (for existing homes and new construction) for:

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Small Wind Energy Systems
• Fuel Cells

Make sure you purchase products that come with a Manufacturer Certification Statement — a statement from the manufacturer that indicates the product qualifies for the tax credit. For record keeping, experts advise that homeowners retain all receipts.

Additional details can be found at www.energystar.gov/taxcredits and www.homedepot.com/taxcredit

Also feel free to contact a Warren Residential Group agents at contact@warrenre.com or call us at 617-848-9616 to find out more!

To search for a house that you can turn green, CLICK HERE!

Great opportunity for a buyer to steal a gorgeous Beacon Hill home.  Originally priced at $8.95 million NOW $4.99.  The auction is to be held March 3, 2010 however all interested parties must tour and register beforehand.  Please contact us is you are interested in the 20 Brimmer Street auction.

“When developers Peter and Elizabeth Georgantas paid $2.25 million for a dilapidated 1860s Beacon Hill brownstone about four years ago, they saw the potential for a hefty profit.”

Of course the market was in a different shape back then and the developer thought nothing of spending upwards $4 million in renovations on the 5,400 sqft Brimmer Street beauty.  Nobody could predict the economic storm that lay ahead and with all the buy-rebuild-flip profits going on it’s easy to see where the buyer could put such money into the row house and expect to still make money of its sale.  But as we all know times have changed…

In an effort to move the home quickly Georgantas reduced the asking price from $8.96 to $7.95 million, and then again, last year, to $7 million.  Now it is hitting auction at $4.9

The home consists of five bedrooms, four baths, three powder rooms, and seven fireplaces…oh and a gorgeous wine cellar. Other upgrades include, imported italian marble in all baths, smart-home technology throughout, solarium , greenhouse, library and an enormous roof deck, heated flooring, and top of the line kitchen.

According to The Boston Globe, “The Georgantas purchased the Brimmer Street property and an adjacent building for $4.5 million with plans to return the 18 rental units back into two elegant single family homes.”

The photos do not do this home justice.  If you are interested please contact us at once.

Boston’s newest Waterfront development is the 33 story gleaming tower called Russia Wharf.  Slated to be completed at the end of 2010, Russia Wharf has gone through some major changes over the past couple years of planning and development.  Originally conceived during the height of the market, the place was to have 215 luxury condo units with stunning views.  This would have been bigger and provided better views than the neighboring InterContinental Hotel and Residences.  Well, given the past 18 months of economic downturn, Boston Properties reduced the number of condo units from 215 to 65 with the rest of the building being comprised of 750,000 sq. ft. of office space.

Since the reduction in units, financing for developments has become even tougher.  Guidelines have got tighter and funds are less likely to provide the financing needed for condo projects.  This has caused the most recent change at Russia Wharf; the conversion of the remaining residential units from condo to rental.  The hopes down the road are that when the market gets hot again, they will be able to convert them back to condos and sell them off individually.

My Thoughts:  To be honest, I think this is good news.  The Boston Waterfront is one of our most requested locations for sales and rentals.  The problem is, there is a lack of inventory in regards to luxury rentals on the Waterfront.  This will provide for 65 new high end units with spectacular views.  We are excited!

We handle Boston and Cambridge area apartment rentals for people who make millions of dollars a year to students with no income what-so-ever and everyone in between.  With that said, many of our renters need a co-signer of some sort.  Here are some reasons why you might need a co-signer:

• Lack of Credit
• Bad Credit
• Lack of Income
• Bad landlord reference

The problem most people have is actually finding a co-signer.  How many of your friends would put their credit and money on the line for you?

Well, this is where WeCosign.com comes in.  They saw an opportunity and here is how it works:

1. An applicant who doesn’t meet the Landlords FICO score criteria is directed to call WeCosign so they can determine their eligibility for their service.
2. WeCosign reviews the applicant, and if approved they will cosign their lease agreement and act as their guarantor.
3. The landlord collects the rent from the tenant as usual, and the tenant pays WeCosign an additional monthly fee for their service.
4. In the event that a tenant stops paying their rent, WeCosign assumes financial responsibility under the terms of the lease agreement.

It’s that simple.  It’s really a genius idea that fulfills a big need.

So now that you have your co-signer, you need to find an apartment.  Clink the links below to do that!

Search for Your Boston, Cambridge, or Brookline Apartment Here

Browse all Cambridge Apartments Here!

Browse all Boston Apartments Here!

Browse all Brookline Apartments Here!