Tuesday, March 1, 2011

Blue Asset Management sees Real Estate at its most Affordable level in over 20 years

According to Charles Blumenkehl, managing partner for Blue Asset Management LLC, purchasing real estate today as it relates to income is at its most affordable levels since before 1989.

Blumenkehl points to studies released by Moodys Analytics that show the ratio ofhome prices to household income falling to 1.6, less than the historical average between 1989 and 2005 which was 1.9. The ratio was at its highest level in 2005, according to the study, at a ratio of 2.3.

According to Blumenkehl, “Buying a home, based on average consumer incomes, is cheaper now than in the last 22 years. The affordability is fueled by the rate of foreclosures in many markets, and the markets which have the most foreclosures have the cheapest affordability ratios.” Blumenkehl continued, “right now, buying a home is cheaper than renting a home. The key, unfortunately for many people desirous of buying a home, is whether they can qualify for a mortgage based on the more stringent income, downpayment and credit underwriting requirements imposed by most lenders today”

Blumenkehl added, “The good news is that there are still low money down options available to buyers who are gainfully employed and have verifiable income. FHA mortgages are still available with downpayments of less than 5%, VA mortgages for qualified veterans are still available with no money down, and for the most creditworthy of potential home purchasers FNMA and Freddie Mac mortgages with 10% downpayments are available. With mortgage rates and housing prices at historic lows, anyone who can buy a house today should, and will be very pleased with their decision to buy in a few years when the glut of foreclosures subsides and the real estate market normalizes to it historic trends.”

Charles Blumenkehl, a 30+ year veteran of New Jersey Real Estate, founded Blue Asset Management LLC in 2008 to leverage what he saw as opportunities which became available in New Jersey Real Estate as a result of the mortgage meltdown leading to the foreclosure crisis. Blumenkehl’s fund buys performing and non performing residential and commercial mortgages, distressed and investment real estate. For more information about Charles Blumenkehl or Blue Asset Management LLC, log onto the company website at www.blueassetmanagementllc.com or call the company directly at 973 835-1400.

Blue Asset Management Sees Buyers Favoring Smaller Houses over McMansions

Charles Blumenkehl, managing partner of Blue Asset Management LLC sees buyers favoring smaller and more energy efficient homes with lower costs over larger “McMansion’ type properties.

According to Blumenkehl, “the trend for buying smaller more practical housing has been increasing over the past few years for a number of reasons. Obviously, affordability is a factor, given the economic contraction of the past few years leaving less buyers positioned to buy the more expensive larger homes in their markets. In addition, the trend to go green, using less energy and wasting fewer resources, the trend to move closer to urban areas which provide more nightlife and shopping, and the trend for owner occupied multi family housing is impacting the big box home marketplace”. Blumenkehl added, “As a result of the lesser interest in these large homes today, our fund is more focused on acquisitions of smaller single family type homes between 1500 and 2200 square feet and multi-family homes that meet owner-occupant criteria.”

Blumenkehl also said he sees a slowdown in sales of these type properties amongst real estate funds who occupy the same business space as his fund, and sees an increased trend to lease/to purchase larger homes as a means of keeping them afloat and avoiding the expensive carrying and maintenance costs these properties can represent.

Blue Asset Management LLC was founded in 2008 by Charles Blumenkehl to leverage opportunities made available through the mortgage meltdown and foreclosure crisis impacting the economy. Blue Asset Management is a purchaser and seller of performing and non performing residential and small cap commercial mortgages, distressed and investment real estate in northern New Jersey. For more information about Blue Asset Management LLC, log onto the company website at www.blueassetmanagementllc.com or call the company directly at 973 835-1400.