Awesome Point Breeze Development Opportunity!

1342 S Garnet Street – Point Breeze – $135,000

Taxes: $186/2016 Lot Size: 15×72
Sqft: 1,080 Zoning: RSA5

New construction development opportunity in the
fastest-growing neighborhood in Philadelphia!

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jimlogo2 (1)
jonesti@mccannteam.com — 215.440.2052 Direct 
Berkshire Hathaway HomeServices — Fox & Roach Realtors — The McCann Team
530 Walnut Street — Suite 260 — Philadelphia PA 19106 — 215.627.6005 Main

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Is a Housing Bubble Near?

Lou Barnes  of  inman.com discusses his thoughts on the current US mortgage status. He states:

“Take two things for certain. First, there’s never been nor ever will be a housing bubble without a corresponding bubble in mortgage credit.

Second, no matter who may yap about credit being too easy (usually complainers about the federal role in mortgages), stick with the Fed’s quarterly accounting of U.S. financial flows, Z-1.

We just got the 1st Quarter 2016 report — it lags because it’s a huge effort to compile accurately. Buried in it, 125 pages deep, are all of the mortgage accounts.

Total U.S. home loans outstanding grew by $19 billion, 0.19 percent to $10.008 trillion — that’s the first time over $10 trillion since 2011. A growth rate like that…no bubble. Impossible.

The sustained rise in U.S. home prices at a slope of 5 percent to 6 percent is fueled by a lot of cash (thank you, stock market), and concentrated in the healthiest metro areas and probably overstated nationally.

Mortgage equity withdrawal

Since the mortgage bubble blew for good in 2007, mortgage accounting has been odd. Every foreclosure results in subtracting the loan amount from Z-1, as does a write-off anticipating loss (one or the other, not counted twice). We have been making new loans, but a constant subtraction has been underway as well.

Another calculation is mortgage equity withdrawal (MEW): net of home sales and purchases, loan payoffs and new loans, and refinances, is mortgage lending turning home equity into cash and adding it to the economy, or not? By how much?

MEW in this last quarter is still negative about 1 percent. In normal times, as far as records go back (late 1970s) until 2002, MEW added 2 percent to 4 percent to disposable U.S. household income. In the suicidal glory days of the mortgage bubble, 2003-2007, MEW supercharged household income, averaging 8 percent per year!

MEW has been a drag ever since, a net drag on the U.S. economy.

MBSs and HELOCs

Z-1 sub-accounts tell more juicy stories. Total subprime MBSs (mortgage-backed securities) are now down from $2.2 trillion in 2007 to $580 billion (including a couple of hundred billion in good Jumbo MBS), and still writing down $20 billion every 90 days.

The cumulative subprime loss is twelve times the total TARP (Troubled Asset Relief Program) assistance to Fannie and Freddie, long since repaid. Do not believe the propaganda that Fannie and Freddie were the cause of the bubble.

Home equity lines of credit are still falling, now more because of pinched underwriting standards than write-offs. The remaining balance now is $625 billion versus $1.1 trillion at the top. The second mortgages used in 100 percent subprime lending blew a big hole in the top total.

Total loans for apartments are barely $1 trillion, one-tenth of single-family, condos and townhouses. Some have expressed worry about an apartment bubble, and it’s not there either — we have built a lot of them, but annual growth in credit has been about 7 percent.

Commercial real estate loans can be a dangerous, bubbling playground, $2.5 trillion outstanding, but the annual growth rate is only 3.5 percent.

There is no housing bubble out here. Nor real estate bubble, period. Instead, these mortgage growth rates are so low that real estate has not really contributed at all to this overall economic recovery. So there.

Key Takeaways

Total U.S. home loans outstanding grew by $19 billion, 0.19 percent to $10.008 trillion — that’s the first time over $10 trillion since 2011.

With a growth rate like that, a bubble is impossible.”

Jim Onseti-1

Jim Onesti, McCann Team
jonesti@mccannteam.com — 215.440.2052 Direct 
Berkshire Hathaway HomeServices — Fox & Roach Realtors — The McCann Team
530 Walnut Street — Suite 260 — Philadelphia PA 19106 — 215.627.6005 Main

Amazing Development Opportunity Just North of Center City Philadelphia!!

Close to Center City, there is a rarely offered opportunity in an up and coming location, at a very convenient place for travel to and from the tri state area!

Philadelphia has just announced that there are major development plans in place, located just above Fishtown in the Port Richmond and Bridesburge areas.

The exciting plans include 7 lots that have been fully approved for 7 duplexes, which will allow for 14 units total!  There is also 14-car parking and roof decks!

Take it from me that this is an amazing opportunity.  I am the listing agent for this site and I can assure you that it is a great deal! It is a phenomenal mid to long term investment, the opportunities are endless!

The asking price is $399k for the site…which of course, is negotiable!

Please click the links below to learn more about what the City has planned for the Port Richmond and Bridesburge areas in the future! Also, see the attached site plan and zoning permits. 

Philly Planning Commission releases River Wards draft plan

Porch Richmond Industrial Development Enterprise gains RCO status

Plan to reconstruct and improve I-95 between I-676 and Allegheny interchanges

Coming soon! Kensington local food coop market

Site plan and zoning permit

For more info or to take a tour of the site, contact me today!!
Jim Onesti 215-440-2052 or jonesti@mccannteam.com
BHHS Fox & Roach – 215.627.6005 Main

Rare Opportunity to Build 31 Homes with Parking!! Not on the MLS!

31 Lot Subdivision, Kerper Place in Lawncrest section of Philadelphia.Publication1

The homes can be 2 or 3 stories.

Parking: 65 parking spaces, 2 spaces each for 31 houses plus additional parking.

Each house is 16 x 48 with front and back yards.

16 twins and 15 rows and each lot is 3335 sq. ft. per unit.

Asking price $1,680,000 ($54k per lot)

Can be delivered with or without zoning approvals!

Well Maintained neighborhood close to Regional Rail, public parks, JC Melrose Country Club, highways etc.

For more info contact Jim Onesti – 215.440.2052 or jonesti@mccannteam.com
BHHS Fox & Roach – McCann Team – 215.627.6005

Great Development Opportunity…Not on The MLS!

North Pennsport block.Surrounded by $500-$600k new construction.
New facade, new $8k Pella windows, new sidewalk and plumbing to street.
The rest of the home is a cleaned out shell with a new concrete slab in basement.
3-story, 1500 square feet, not including future finished basement.
Asking price is $189k, needs $100k in construction but resale is $350k !!

There may be some room in acquisition price!  1228 S Hancock Street
123   456   789
For more information contact Jim Onesti – BHHS Fox & Roach – Mike McCann Team
215.627.6005 Main – 215.440.2052 Direct or jonesti@mccannteam.com

Discount Brokers: The Real Deal

We have all heard the old saying, “If it sound like it is too good to be true, it probably is.” Unfortunately, this is typically the case with discount brokers. Whenever the real estate market reaches a high point, tons of new, discount brokers and startup companies seem to appear out of nowhere. They come promising dramatically decreased commission percentages in exchange for their discounted services. Now, we understand how appealing this may look but I want you to be informed and aware of the risk involved when you come in contact with these operations.

As an experience realtor, I have seen the poor service that these organizations provide on numerous occasions. Many of these companies require upfront payment in order to list the property in the MLS and then disappear, leaving clients baffled, confused and alone.  Eventually, the companies disappear completely, leaving a great deal of wreckage behind.

Be Forewarned! These individuals do not do the same job as legitimate, real estate professionals. They will not take the time to market your home, manage paperwork, host open houses or guide you through the negotiation process like genuine professionals. They will simply cash your check, list the property and disappear.

Bottom line, if your home is not a discount property, then do not list with a discount broker. Those flashy and appealing discounted rates could end up costing you more than you ever imagined. Be safe, be smart, and beware of the discount broker.

For a name you know and a Realtor you can trust, contact me today!
Jim Onesti – BHHS Fox & Roach – McCann Team – 215-627-6005 Main
215.440.2052 Direct or jonesti@mccannteam.com