Renters make Buying more Difficult

Over the past few years the number of people who have decided to rent our their condos in Boston rather than sell them has certainly increased, and in some cases dramatically so. The side of effect of all this renting is just beginning to show it’s face. We’ve already talked about how rentals are now priced sky high, (see here) but there is now a second side that is starting to show it’s face.

Owner Occupancy Rates

Most people have never really focused on this little used metric when buying a home, but it’s incredibly important. The most important use of this statistic is when it comes to getting a mortgage. Most mortgage companies want to see minimally 50% owner occupancy and most would like to see more than 60%. For many condo buildings in Boston this has never been a problem but with the increase in de-facto landlords many buildings are now flirting with this number. The result, it’s become another obstacle for many buyers to overcome, not just from a mental standpoint but from a closing standpoint.

The mental aspect is that buildings with high owner occupancy rates are generally better maintained, since the people living there have a vested interest in how the property looks. Since so many owners have now become de-facto landlords however, this type of thinking might need to shift. It needs to be recognized that some of these people will not be landlords much longer as the market improves.

If you have questions about Owner Occupancy Rates or other questions related to buying a home, contact our office at 617-449-3642.

2010 Spring Condo Market

The spring Boston condo market has arrived early this year! In the past week alone, 77 new condos have come on the market in Boston’s major neighborhoods. The majority of these new condos have come on the market in Back Bay, South End and South Boston. These 3 neighborhoods alone account for 63 of the new listings. It’s important to keep in mind that these lists don’t include new development condos. If you’re thinking of purchasing this spring you might want to start looking now, so as to not miss out on what’s coming on the market. If you’re thinking of listing your property for sale, I can tell you our office is swamped with buyers looking to purchase homes in these neighborhoods. Call us today to find out what your home can fetch, or email as contact@backbayrealtygroup.com