Investment Trends in 2017

Financial goals differ from one person to another and if you are left with substantial amount of money after repaying your loans or retirement contributions, then you might explore other investment options such as stocks or 401Ks or real estate. Investing in home buying or home selling is always lucrative but then again they come with their own set of risks. However, this does not imply that investing in stocks will take you nowhere; of course there are several millionaires who are able to pull in more than $100 million dollars a year by investing in stocks.

In this article we will try to see how real estate is being considered to be a safe investment when compared to stocks or 401Ks:

  • Greater Control

The moment you carry out a home buying activity, you turn into the owner or in other words the CEO of that property. You have the liberty to raise rents, search for better tenants, make improvements and even go for cost cutting. You are in absolute control of whatever you do with your investments and there are a very few external factors that affect your actions or income.

On the other hand, when you are investing in a public or private company, you can only buy a minority of their stakes. You have put your faith on the management of that company, which is vulnerable to frauds and mismanagement. They hardly care about your investments and all your money can go down the drain because of a blunder on the company’s part.

  • Tax benefits

You have the option of deducting the interest to a limit of $1 million in mortgage on your primary residential property. Profits on primary home selling are tax free for up to $2, 50,000 for singles and up to $5, 00,000 for couples who have been living in the home for at least 2 years. Even the expenses you incur for maintaining your house are deductible from your income. There are immense tax benefits on real estate investment, which is again at the top of home trends in 2017.

  • Analysis and quantification is easier

Real estate investments can be easily analyzed and quantified because you will have to calculate only your expenses and income. If you are able to borrow at 2.5% and rent out your property at 5.5% then you have winner on your hands. Why would you bother yourself with the investments in stocks or 401 Ks that requires in-depth analysis and calculations?

However, there will always be people who prefer to invest in stocks or 401 Ks because they can’t ignore the lure of higher returns, greater liquid, low transaction costs and greater variety. Always choose to invest based on your investment goals and risk taking ability.

Mortgage Overlays – How Does it Affect Loan Approval

What is Mortgage Overlays?

As a homebuyer, your might have often come across the term Mortgage Overlays. However, did you ever try to find out what it exactly means? We all face approval issues while home buying because of the non-compliance with mortgage overlays. Well, technically mortgage overlays are the set of rules that lenders follow above the guidelines laid down by FHA, USDA, VA, Freddie Mac and Fannie Mae.

Every lender has framed their internal rules or mortgage overlays that are applied to mortgage loans. Lenders frame the mortgage overlays after calculating its risk taking ability and the prevailing economic conditions. Thus, whenever there are tough economic conditions, you can expect the mortgage overlays of a lender to get stricter. The mortgage overlays are relaxed during prosperous times.

Mortgage Overlays are not equal

You will never find equal mortgage overlays for different lenders because everyone’s risk taking capability as well as economic assumptions varies. For instance, a customer with credit score of 610 might get approved for an FHA loan while the same customer can be rejected by another lender even when his or her credit score has improved to 650. It is up to the lender to decide whether it wants to approve a loan or not based on their mortgage overlays.

The debt to income ration set by FHA is 56.9% for approval of a loan but there are lenders who will not approve a loan if the debt to income ratio crosses their set limit of 43%. Similarly, the down payment requirements too vary from one lender to another. Freddie Mac and Fannie Mae have laid down the rule that homebuyers need to make a down payment between 5% and 10%. However, there are lenders who might ask customer to make a higher down payment based on their credit score or debt to income ratio.

These are some of the examples of parameters that individual lenders take into account while approving a loan. It is the lenders discretion as to what parameters it identifies a too risky and the parameters it is ready to accept. Not all the lenders are too strict with their mortgage overlays nor do they include all the above parameters while deciding on a loan.

There are different rules and varying scenarios that are taken into account by each lender and it can be extremely confusing for customers. Thus, it is imperative that you understand the basic difference between mortgage pre-qualification and mortgage pre-approval. If you are pre-approved and there are some mortgage overlays that apply to your loan, the loan officer is going to inform you about the same so that you are ready while applying. Loan process becomes lot easier with pre-approval and also ensures that you are able to avail the loan quickly and without any hassles.

Commercial Real Estate Trends 2017 – Expectations and Reality

The commercial real estate market in 2017 is going to be influenced by several factors like demographic shifts, technological advancements, longevity, growing urbanization etc. Profitability will be highly impacted by regulatory and macroeconomic developments.


Is it just too much to expect bottom and top line growth?


Let us look at some of the latest home trends that would affect home buying and selling:


Economic Outlook


In the year 2017, higher interest rates are bound to dent the growth rates. The US Economic Forecast by Deloitte predicts that the GDP or Gross domestic product will shoot by 2.5%. The slow rate of economic growth will affect the transaction activity in the commercial real estate segment.


Global market trends are not very good and it has led to lowering of interest rates. Experts are of the belief that Federal Reserve is going to increase the rates further this year for the short-to-medium term. The mortgage costs will bear the impact of increased interest rates and the higher mortgage rates will lead to slow down in the real estate market.


The unemployment rate is going to dip, which is good news because higher labor participation is expected to improve the employment scenario. Consumer confidence will get a boost because of the increase in household wealth and better labor markets.


Regulatory outlook


In 2017, compliance cost is going to increase and this too is going to impact the real estate market. There are new accounting standards slated to come into play for revenue recognition and lease accounting. This in turn is going to spike the administration and compliance costs for the engineering and construction companies and real estate investment trusts.


The rules for risk retention will push down the issuance of commercial mortgage backed securities and bring down the capital availability even though exemptions will be provided under Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).


Above all this, the PATH or Protecting Americans from Tax Hikes will further ease the tax provisions of REIT and R&D tax credits for the E&C companies. This will further create a very conducive situation for investing in startups to carry out R&D experiments. The corporate tax reforms will be able to reduce flexibility for companies to turn their real estate properties into the REIT structures.


In 2017, the real estate companies will have reinvent and apply strategies properly to counter as well as respond to any changes pertaining to the macroeconomic environment.


4 Home Trends in 2017 Investors Need to Keep an Eye On

Real estate investments can be rewarding but there are risks that come piggybacking along with such investments. As a property investor, you can make steady gains by being adaptive and making adjustments as and when the situation demands. In order to stay a step ahead in the race, you will have to keep an eye on home trends for both the commercial as well as the residential markets. 2017 holds great prospects in the home buying and home selling market and here is a list of 4 home trends in 2017 investors need to keep an eye on:

Construction of new homes will be among the top housing trends

The construction of new homes is going to get a boost in 2017 and trends are moving in the positive direction. There will be a rise of 11% in the single housing family segment and builders are going to come in really handy. They are going to fill in the void as there is a steady rise in the home prices. Commercial construction will also witness a steady rise because of the new home trends.

Taking off with the Drone technology

The use of drones is not limited to Amazon deliveries only; even the real estate agents are using it them to great advantage. After getting clearance from the FAA or Federal Aviation Administration, drones are being put to commercial uses. Smart real estate investors are using the drones to show their properties to their customers. Home buying activities can be made interesting and cost effective by using drones to vet office buildings, homes and other real estate properties.

Video feed from the drones will facilitate property inspection from different angles without viewing it in person. Structural defects in buildings are easily revealed even before carrying out physical inspection. Drones can save your money and valuable time by revealing flaws in properties.

Slow Growth of the Global Economy

After an eventful 2016 that threw bizarre surprises in the form of Brexit and US presidential election results, global economic growth is forecasted to be mute. IMF puts the economic growth at 3.4%, which is much lower than the earlier predictions. This is going to have a negative effect on the real estate market as well. As a real estate investor, you too can expect the global slowdown to have an impact on your investments.

Optionality is the future

Sharing is not limited to your Uber cab rides; it has now a pervaded the real estate space – quite positively.  Using a property is using optionality for the benefit of both the owners as well as tenants. Co-living is one such example of optionality that has redefined living and using a property.

The above are 4 of the most talked-about trends that are going to influence residential and commercial real estate market in 2017. As an investor, you cannot be absolutely ignorant towards the trends, so keep an eye on these trends to make the most of all the opportunities.

5 Trends Expected To Shape the Real Estate Market In 2017

The past year hasn’t been the best year for real estate but it has yet managed to chug along while pushing the economy. However, the home trends in 2017 has some real positive signs for the real estate market, which is definitely going to witness a lot more home selling and buying. Housing has contributed to only 15% of the GDP because lending standard has been pretty strict and the builders, having just survived a crisis, were reluctant to go for higher investments.


However, the good news is that the latest home trends are showing signs of changes and within the next few months business is going to really peak. Here are some of the trends that will shape the real estate market in 2017:


  • Increasing Rates


After 2006, it was the second time in a decade that the Federal Reserve increased its rates and if experts are to be believed, there are going to be more increments in 2017. There will certainly be a direct impact on mortgage rates, which are going to rise making it even more a steeper climb for the prospective homebuyers. Buying the dream home will get difficult but it should not be too much a cause of concern. The mortgage rates are going to rise but it won’t cross the 4.3% on 30 year fixed rate. Now, this is quite a convenient deal if we are to take a look at the history of such rises.


  • Higher credit


It is being predicted that even though the rates are going to increase but availability of mortgage credit is going to be wider because of the less strict lending standards. The Federal Housing Administration might even look at lowering its fees for the first time buyers, something that we all witnessed in 2015. Home buying is going to get a boost as Freddie Mac and Fannie Mae (mortgage companies owned by the government) will provide backing to the bigger mortgages, which in turn will make it even more convenient for the homebuyers.


  • Greater Number of New Homes


The latest home trends point to the fact that home builders are going to build more new homes in 2017. This is being primarily driven by factors like looser credit, higher wages and greater demand in home buying.

  • Foreign buyers are here to stay


Real estate prices are rising in larger cities like Los Angeles or New York because of the increase in the number of foreign buyers. Of late the number of foreign buyers in the US has largely increased and this has made home buying unaffordable for the common folks. These foreigners are here to stay and will keep on influencing the real estate market like never before.


  • Expansion of the smaller cities

The larger cities are unable to meet the demand for new construction because of the strict regulations of the local governments and or geographic constraints. Younger people are flocking the medium-sized or smaller cities that offer better housing affordability.

Luxury Real Estate Outlook 2017-Is Oversupply Spoiling the Party

2016 hasn’t been a very exciting year for luxury real estate business as it has been fraught with political uncertainty and oversupply. The New Year too does not ring in good news and companies have to be ready for a slow yet steady year ahead. Experts are of the opinion that investors need to shun too much positivity and not expect great home trends.


High-end luxury real estate markets in cities like Miami, Los Angeles, San Francisco and New York are witnessing over-development in the high-end bracket, which is resulting in price concessions. The US citizens with higher Dollar income have a greater buying power all around the world and they are able to spend more than their counterparts from other companies. Affluent Americans are on a buying spree so that’s kind of good news for companies who depend lesser on foreigners for selling their homes.


In this article, we are going to take a find out how 2017’s luxury real estate market is going to pan out in some of the top cities in the US.


New York

The presidential election results have come as a breath of fresh air for the luxury property market of New York.  The final voting results have restored some sort of sanity and certainty and the year end witnessed contracts of more than $4 million dollar being awarded. Post election, home buying or selling activity in the luxury real estate segment hasn’t slowed down. November’s final week registered a total dollar contract of $371.6 million and all were in the high-end segment. The feel-good factor will be naturally carried forward to 2017 and builders can expect the same buying spree in the first few months as well.


Miami doesn’t paint a very impressive picture because builders and developers have either cancelled or suspended several projects that were supposed to take off late last year or early 2017. The high-end condominiums have remained unsold, which is a huge pressure on the companies. There has been an oversaturation in the condos and housing market in the $15 million price bracket.

San Francisco

San Francisco had witnessed quite a good response last year and saved itself from being part of a devastating crash. However, it is all set to join cities like New York that are suffering from the problem of oversupply of apartments in the luxury segment. The high volume of condo construction has led to a glut in this city as well – there are more sellers in the luxury real estate market than takers.

How Trump’s Presidency Affects the Real Estate Market in 2017

Presidential elections in the US are not new to controversies. However, everyone around the world would agree to one thing – never has such a controversial figure like Donald Trump been elected to the top post. Trump’s campaign trail has been riddled with multiple controversies. From racial slurs to alleged sexual abuses – he has been labeled with all. But USA has voted and they have given Trump the mandate to lead them for the next 4 years.

The present occupant of the Oval Office is as much about controversies as he is about his business ventures. He has been a real estate tycoon; probably the brightest spot that will drive the market sentiment in the years to come. Even though the US real estate market is going through a phase filled with uncertainties, we can expect some positive and favorable policies from his government. The Federal Reserve has hiked the interest rates, which has caused quite a stir in the mortgage markets with the rates nearing the 4.5% for 30 year mortgages. This has led to locking of lower mortgage rates by homebuyers before they aim higher.

Uncertainty is the new norm in Washington and real estate markets are not untouched by it. Here are a few ways how president Trump’s tenure is going to affect the real estate market in 2017:

Expect changes in the tax structure – It is probably too early to predict how the Trump factor will affect USA’s real estate market. However, if market experts are to be believed then we can expect watering down of the business regulations. This in turn will allow the lenders to be a little more liberal with their lending. It is also expected that the policies of the new government will make favorable changes in the tax structure, which will be a cue to the holding companies to push for real estate investment sales.

Prices are going to shoot – This was long overdue and we will witness a steep rise in the price of real estate properties. The pace at which there will be a price rise will depend on the policies already announced by Donald Trump. He wants to make America Great Again which implies creation of more jobs for Americans and that will drive the price rise in 2017.

Policies to favor industries – Trump has been in the real estate business for long and his team of policy makers will have a natural leaning towards real estate. Our president has been a part of this industry for long so his decisions and moves is bound to favor the real estate market.

Donald Trump will find it hard to shrug off his real estate past and his leanings are clear from outset. We are in for a great year in the real estate and Trump is going to build highways, buildings, railways and bridges – all that will bring a smile on the faces of real estate businesses.

New Opportunities in the 2017 Real Estate Market

Even though the real estate market is far from being termed as booming but the slowdown is temporary and this New Year, we can expect to see a surge in activity. There are three important things that we will definitely witness in 2017 – Slow growth rate of the economy, increase in home prices, leaning towards renting. Now, this might sound similar to what we experienced in 2016; however, the investment risks will be much higher.

Slow Growth Rate of the Economy

If we are to believe the Federal Reserve then we can expect the economy to do better in 2017 and it is also going to get stronger. However, people in the real estate market are aware that this is far from being true and in fact the Federal Reserve is being a bit too optimistic.

US economy goes through long phases of highs and lows and this is quite true for the job market. During the recession, job creation had plummeted considerably. However, it picked up later to touch 2.3% in the year 2015, after which it again dived to 1.6%. So going by this trend, we can expect the economy to bounce back in 2017.

We are witnessing a very unfortunate situation and at best we can expect our economy to register some growth if the borrowing by consumers is curtailed.

Increase in Home Prices

The year 2012 saw home prices dip like never before and after that it has steadily grown at a rate of 5% every year. However, the price difference is quite huge between big cities and the smaller ones. This can be attributed to higher population and job growth in the bigger cities compared to the smaller ones. It is quite easy to identify the markets where prices will rise but the big question is whether the smaller markets present good investment opportunity or not. How does one invest in the markets that are already witnessing over pricing?

Leaning Towards Renting

As an investment proposition, nothing can beat renting out the single-family homes after buying and fixing them. Investors flocked for buying the bargain homes that offered quick return on investments. Renting has always been favorable and nothing can beat it in term of returns that are kind of guaranteed. So in 2017, if you wish to make the most of your investments, you can always opt for renting.

2017 will probably be plagued by several problems like slow job creation, higher debts and lower incomes but there are many opportunities to be explored as the year progresses.

How to Get a Higher Home Sale Price in 2017

Usher in the New Year by selling your property at a higher price and making some decent profits! Yes, the real estate market is currently booming and you need to make the most of the home trends. There’s no point wasting time on haggling with potential buyers; get smart instead and learn how to get a higher home sale price. Here are some tips to rake in cool profits on your home sale:

  • Check the local market home trends before setting the price of your home

If experts are to be believed then 2017 is going to be extremely volatile for the real estate market and setting the right price for your property will be crucial. You cannot expect to sell your house by setting a price that is not in sync with the home trends of your local markets. Home buying is a complex and tricky process – you will have to convince the buyers into paying you the price you expect.

It is not wise to set your price too high and that too without checking the prevailing local market rates. One smart ploy that many first time sellers use is setting the price 5 to 10 percent below the prevailing market rates. This strategy helps them to sell their homes quickly and without too much bargaining because enquiries for low-priced properties will be much higher.  Buyers will be more eager to buy your property and they will be driven by a sense of urgency.

  • Improve the interiors

We all get attracted to houses that are well kept and even are eager to pay a higher price for properties that are maintained in a proper manner. Thus, prior to setting up your home for sale, just invest a little time and money to improve the interiors. You can get the windows and the blinds cleaned. Open up the windows from time to time so that the rooms get illuminated by natural light. Replace the bulbs that are not working and you can even install a dimmer so that it provides a balance to your rooms.

  • Front door needs a paint job

As they say first impression is the last impression and what a better way to impress than getting your front door painted. The new coat of paint will take away all the dust that might have accumulated on your front door. You will love to see the look on your customer’ face when they enter your house because you might have just brought a smile on their face.

  • Keep it clean

“Cleanliness is next to godliness”

When you are getting into the act of home selling, the adage gains even more importance. So clean your house like you have never done before to impress the buyers. They are going to impress you by giving you the price you want.

You can’t afford to make mistakes while attempting to sell your house so do some legwork and use the above tips to sell your home at a higher price.

Thinking of Selling Your House ?

Thinking About Selling Your House?


Owning a house is a great feeling and the greatest asset one has! The real estate market is so dynamic and ever flourishing that buying and selling of homes is not an easy task. With so many buyers, sellers, builders, real estate agents and agencies in the market, there’s always something happening and abuzz! While buying a house requires years of planning and savings, selling a home requires immense patience!


Ask a home owner who has sold a house and they’ll tell you how difficult it can be! Finding a trustworthy buyer who is willing to pay the right price for your home requires days and days of meetings, home showings, paperwork, background checks and numerous other tasks and activities that are time and energy consuming. If you want to sell your home for the right price you may have to wait for months, sometimes a year or more to find the right buyer who is willing to pay up the desired amount.


Paradeisos Property Group is here with the perfect solution for all you home sellers! If you want to sell your home, get in touch with us and we will not only buy your house but also pay in cash and close the deal on your timeline! Yes, you tell us how quick you need to move or if you are just planning ahead. So if you need cash this week, next week next month or next year then don’t hesitate to call! There’s more, we don’t charge any commission fees and only work on home for cash basis. You can sell your home fast, get the cash, and not wasting any time running from realtors to agents or welcoming prospective buyers touring your house and never coming back! We are a reliable and reputed group that has established a market reputation by helping home sellers with the best offers and services. Our experts know the current trends and demands in the real estate market and go beyond their way to ensure that every home seller gets the best deal and maximum profits.


Whether you are relocating to another city or another house, just give us a call and your house will be sold and you will have the money in your hands! There’s no better deal than that! We work on a foundation of complete customer satisfaction and leave no stone unturned in helping our clients have a delightful and profitable experience. We help you sell your home fast and do all the necessary work on your behalf to add to your home selling experience.