Finding your next home in a challenging market

BY PHILIP A. RAICES

At this point in time, pretty much everyone is aware of how low the housing inventory is and how difficult the challenge is to find a house, townhome, condo, or co-op. More important is how high the interest rates are and the substantial cost of purchasing whether it be residential, condos, co-ops, or even investment properties.

Way back when rates were this high the price of a home, condo, co-op, or investment property was at least five times less costly and it appeared that most salaries were able to handle the monthly payments and cost of living. Today it’s a whole different ball game and the pressure on those trying to purchase and make an investment is much greater. No one knows, especially Fed Chairman Jerome Powell, when rates will subside and come down to a more affordable level so that more potential purchasers can get back in to become homeowners.

Even renting has become very expensive as so many married couples and singles have abandoned ship and are sitting on the sidelines in a rental or just staying where they are in a a parent’s home waiting for a more beneficial and advantageous time when interest rates become lower. That is the big $64,000 question!

As mentioned in last week’s column, a great number of people (182,000 in 2022) have left New York State completely for less costly states, like Texas, North and South Carolina, Georgia, and Florida, and others, where overall taxes are considerably lower. However, here is a list of states that have no State income tax whatsoever: Texas, Florida, Alaska, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming.

But one must do their due diligence and check to see what other taxes those states levy in lieu of not having to charge income taxes to determine which state(s) have the greatest advantage financially to save you money. New York State needs to rethink how it taxes us and determine a better way to collect money, so we do not continue to lose our valuable resource, our people. I have my own ideas on how this could be accomplished, which I will propose in a future column.

In some situations where some homes were overpriced, there were price adjustments in February and March. But due to still strong demand from purchasers, prices have begun to increase once again. This does not mean all prices have increased, but mint and diamond homes are selling at a premium, at or above the asking list price. So for those who are paying outright for the purchase without financing or putting down a large down payment, let’s say 30-60%, the financing doesn’t appear to be a major problem.

When and if rates decrease, one can always refinance to reduce monthly mortgage payments. The important thought to keep in mind and to consider is that unless you are earning more money wherever you have it invested, and feel more comfortable handling it that way, then that is what you should continue to do.

When you consider the compounding effect of buying now, however, the potential increase in your wealth could be far greater in an ownership position than waiting for interest rates and home prices to come down as that may take several years. As an example, if you buy a $900,000 home and put 20% down out of pocket and prices increase 1%, that’s an increase in value of $9,000 and you are leveraging that value today to earn that return and enjoy your home.

This, of course, is on paper. In order to earn the same 1% or more on your investment, you would have to have available, liquid $900,000 to invest in stocks, crypto, and triple tax-exempt bonds. Most do not have that amount of money. Predicting the rate of return on investments, all things being equal today, as many of you have experienced, is a precarious and uncertain journey. One must be absolutely certain of the outcome, which becomes futile and next to impossible to do.

So you need to do some calculations and strategizing to ascertain, the risks and rewards and understand what is really important, besides the rate of return. To be in an ownership position for the long term and over time, building appreciation and equity as you pay down your mortgage is a sort of forced saving. The other positive is that the money spent will enable your family to build and grow roots in the community as well as develop potential lifetime friendships.

How does one put a price and/or value on that? It is impossible and only you can determine what is most import- ant for you and your family going forward. Also, being close to parents and relatives can be a variable in wanting and needing to stay put. Affordability is the defining factor.

Being creative and working with sellers to provide financing has worked for us very successfully in our brokerage and it makes for a win/win situation for all parties, enabling buyers to purchase and sellers to take advantage of saving and deferring capital gains. The other unfortunate option is wasting your money on a rental, providing the landlord with all the benefits, tax deductions, income, and appreciation, or residing in a parent’s home or leaving NYS altogether.

Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S) as well as the new “Green Industry” Certification for eco-friendly construction and upgrades. For a “FREE” 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@ TurnKeyRealEstate.Com or via https:// WWW.Li-RealEstate.Com Just email or snail mail (regular mail) him with your ideas or suggestions on future columns with your name, email, and cell number and he will call or email you back

Continued from page 2 mean you should. While its high acid content will keep most bacteria at bay, cool temperatures help maintain flavor and freshness. Refrigerate ketchup for up to six months.

Corn on the cob -- After picking, corn begins to lose its sugar content dramatically when left at room temperature. Unless you’re going to cook it right away, keep corn in the fridge -- husks and all -for one to two days.

Chocolate syrup -- Chocolate syrup is an easy way to make a glass of milk taste even better. But not if it has developed funny flavors. Chill yours after opening and you can enjoy it for six months.

Pecan and pumpkin pies -- Made with eggs, these treats are magnets for bacte- ria. Fresh from the oven, they’re okay to eat at room temperature for up to two hours (only one hour if it is over 90 degrees Fahrenheit). After that, they should go straight into the fridge and be eaten within three to four days or frozen for another time.

As for butter, I recommend keeping it in the refrigerator. If you need to have it softened for spreading or use in a recipe, take it out for a short while. Butter can also be stored in the freezer.

Recipe

If you need to take a lunch with you to work or on a picnic, consider a layered salad in a jar. It’s a convenient way to transport a healthy lunch. You can also make several at a time, as they will keep for several days in the refrigerator.

Here’s a recipe for a Chicken-Egg Salad. You can add any other vegetables you have on hand -- cherry tomatoes, cucumbers, mushrooms -- as well as cooked whole grains such as quinoa, farro or lentils. Note: A heartier lettuce works better than iceberg.

CHICKEN-EGG SALAD

Servings: 1

1 1/2 cups torn romaine lettuce or fresh spinach or baby kale

1/2 cup yellow sweet pepper strips

1/4 cup sliced fresh strawberries

2 tablespoons light olive oil and vinegar salad dressing

1 hard-cooked egg, quartered

1/4 cup chopped cooked chicken breast

2 tablespoons sliced green onion

2 tablespoons cucumber-dill Greek yogurt dip

1 ounce whole-grain baguette-style bread

In a quart-sized Mason jar, put dressing in first. Then add pepper, strawberries, green onion. Mix chicken and egg with yogurt dip. Add to jar. Spoon lettuce or spinach on top. Serve with bread.

Per serving: 337 calories, 23 g protein, 31 g carbohydrate, 13 g fat (3 g saturated), 219 mg cholesterol, 6 g fiber, 12 g sugars, 664 mg sodium.

(Recipe adapted from “Eat to Beat Diabetes.”)

Charlyn Fargo is a registered dietitian with SIU Med School in Springfield, Ill and the current president of the Illinois Academy of Nutrition and Dietetics.

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BY DENNIS MAMMANA

Week of June 25 - July 1, 2023

Summer is now upon us in the Earth’s Northern Hemisphere, and with it comes a changing canopy of stars that always transports me back to childhood.

It was a simpler, more innocent time -- a time when neighbors sat on their porches in the evenings, there was no school for at least several months, and ice cream or watermelon was all we ever needed to stay cool. Life seemed just about as good as it could be.

And it was on nights like these that I recall lying back on the cool grass of my backyard watching my favorite star, Antares. Its ruddy light always twinkled through the summertime haze that seemed to hang in the southern sky over the Coursens’ house.

What warm and comforting memories these are from such a magical time of discovery.

Though life has changed much for me since those halcyon days, Antares remains a wonderful friend. Even today, wherever I find myself on our huge planet, as Antares appears in the sky after dark, I get a huge smile on my face as I joyfully greet my nearest celestial childhood friend and reminisce about the wonderful times we’ve spent together.

That’s the power of making friends