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Affordable house payments … the next BIG wave!
by Annie Christian - Special to the Sparks Tribune
Nov 25, 2011 | 799 views | 0 0 comments | 62 62 recommendations | email to a friend | print
Are we living in one of the longest lasting real estate busts?

You bet. And it may take another three to five years for us to sell off the 6,000 to 7,000 homes that are currently on the market now.

Unfortunately, many new homes come on the market every day, creating more competition. Several builders have re-entered the market in 2011. They sell homes to fully qualified buyers that will put up a deposit for them to break ground and complete a home in the next six months. Builders are building fewer homes. Just like any other home sellers, builders are reducing their asking price again and again to attract buyers. No one can afford to allow a home to sit empty for months on end.

Sample payments for homes that you will love:

5815 Sonora Pass sold for $175,000

This house was built in 2004. Sonora Pass is located in the highly desirable Kiley Ranch area with newer shopping in the Spanish Springs Galleria nearby. This is a large 3-bedroom, with a spacious living room and formal dining room. The large kitchen is located in the family room. Upstairs consists of a spacious loft and three large bedrooms. The total square footage is 2,295. Most homeowners use the loft as a den, or just another sitting area for their children. This property is in excellent condition. What makes up the total monthly payment is PiTi, (principal, interest, taxes and insurance) and FHA mortgage insurance, and a small $20 monthly HOA due. At 4 percent interest, the total payment comes to $1,260 each month for the next 30 years.

936 Palmwood sold at $115,000

This 1976 Sparks home is located near Reed High School. It has a lovely front lawn and a decent size backyard with a covered patio. There are four bedrooms, a large family room, large kitchen and a dining area. At $115,000, you can expect to put in a little updating. A new buyer may want to paint and change the carpeting to give this home a fresher look prior to move-in. The buyer may also want to give the kitchen a quick update by changing out all the appliances. A good shopper may easily find sales on a stove, refrigerator, washer and dryer, dishwasher – the entire package for under $5,000.

There is no monthly homeowner association management for this property. At 4 percent interest, property tax, insurance and FHA mortgage insurance comes to a whopping total of $818 per month fixed for the next 30 years. Imagine how happy this makes the family of six, their homeownership monthly cost is $818 and is way cheaper than writing a $1,200 rent check every month for a 4-bedroom rental.

Unbelievable as it sounds, first time homebuyers in the Reno-Sparks area are finding out that it is not only possible to own, but they can own for less than they were paying for rent.

How is that possible?

First, we have extremely low home prices. Second, we have low interest rates. These two factors play an important role in determining your final monthly payment.

CAREFUL financial planning

Most importantly, these two homebuyers are very careful with their financial budget. They do not want to live a life that leaves them broke. Being financially healthy is a major concern these days. Is it possible to be financially healthy in this economic slump? Yes, if you follow the examples set by these two recent homebuyers. They have jobs and children. They want to own a home but they do not want to lose it like many of their neighbors. A careful financial decision has to be made before they commit to a home purchase.

What is a good investment?

Remember the rule of a good investment is buy low, sell high. We have learned by watching our government lose a perfect credit rating. We have learned by watching our neighbors lose their homes. Mistakes have been made and now we must heal and learn a different lifestyle. Let’s learn to live within our means and become financially healthy.

Annie Christian is a real estate broker and owner of The Annie Christian Real Estate Group. She helps with everything from buying and selling to foreclosure and short sale. To submit a question, call 351-5117. Her website is

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Affordable house payments … the next BIG wave! by Annie Christian - Special to the Sparks Tribune

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