USD to KYD Exchange Value: 0.82

USD To GBP: 0.76214

USD To CAD: 1.27998

USD To CNH: 6.3209

It has certainly been a turbulent year. It's hard to get through a conversation these days where someone doesn't comment on how the 'meltdown' has affected them personally. It primarily takes the form of tangible things like the slimming of their securities accounts and retirement funds, but often there's the unexpressed and pervasive fear of the unknown effect these circumstances will have on their future. 

The avenue of least resistance is certainly to get buried under these fears, and there certainly have been cataclysmic and life-changing events that have affected millions of people. In our microcosm of the Cayman Islands, we have noticed people's moods shift often to anger--the aggressive form that fear takes. 

I know that this seems a bit too serious for a seasons greetings email from your real estate professionals in a tropical paradise, but I think it's important to acknowledge 
the up-front-and-center feelings not buried very deeply in the holiday glitter. 

We at Coldwell Banker feel that it's our mission to be part of the solution by making sure we are completely up-to-date with market conditions, including services that affect the market - like the availability of mortgage money, the appraisal process and where to reach out to buyers. We are not budget-cutting like others by decreasing our marketing, but instead we're finding new ways to reach out to those savvy people with resources who recognize that this is a good time to buy. 

As everyone's favorite wealth guru, Warren Buffet said to shareholders, "The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer." 

We want to be ready for you when you're ready to make your real estate move, by exceeding your expectations 
with our knowledge, our service, our enthusiasm and passion for what we have to offer in the Caymans. You'll experience terrific value, better inventory than we've had in quite a long time and certainly last but not least, a true tropical paradise. 
Now, more than ever, it's important to think long-term. 

We hope all your wishes come true in the coming year. And if we can help with those, call us!

USD to KYD Exchange Value: 0.82

USD To GBP: 0.76214

USD To CAD: 1.27998

USD To CNH: 6.3209

The home-buying process can be daunting, particularly for the first-timer. Liz Pulliam Weston with MSN Real Estate suggests the following timeline as an ideal one for someone purchasing their first home. Of course the steps can be accomplished in far less time, particularly if you employ trusted industry experts for advice. 

As soon as possible (Ms. Pulliam Weston suggests one year)

Obtain a copy of your credit report. In the US, the three major credit bureaus, Equifax, Experian and TransUnion offer free credit reports. You should scan the report for errors: accounts that aren't yours and other mistakes will negatively impact your credit and may cause you to pay higher interest rates. Errors and mistakes can usually be dealt with and usually without assistance from an attorney. If you are outside the US in a country without a formal credit tracking system contact a local lender and ask them if you have doubts about your ability to finance a home purchase. Lenders can have vastly different opinions about late payments, repossessions and bankruptcies depending largely upon how badly they want to make the loan.  

Improve your credit rating.
In the US most mortgage lenders use the FICO credit scoring formula. For $50 you can buy your FICO score for all 3 credit reporting agencies at MyFico.com. In the US or not, you can improve your credit standing by avoiding late payments, pay down credit cards and don't open or close any new accounts while you're in the market for a mortgage. 

Deal with your debt. 
Eradicate high interest 'toxic' loans: credit card balances and pay-day loans because they are indicators you are living beyond your means. Low interest debt such as student loans or auto loans generally won't present an obstacle.  

Save, save, save.
You will have more financing options the more money you have to put down. 5% is minimum but 10% is better and if you can demonstrate that you saved this money on your own over a period of time, so much the better. Don't show up at the mortgage lender's office flush with a cash infusion from Uncle Bob. That doesn't show character. But if you can accumulate the down payment over a period of time by avoiding eating out, dropping your cable TV subscription or other, that does.  

Put your bills on automatic.
Use on-line bill paying and the recurring payment feature. Better yet, consider using automatic debt payments so that the bill is paid directly from your checking account. A single late payment can harm your chances of getting the loan to purchase your dream home. 

Next Week: 6 months out 

USD to KYD Exchange Value: 0.82

USD To GBP: 0.76214

USD To CAD: 1.27998

USD To CNH: 6.3209

Last week we reported long term strategies to follow before shopping for your first house. Liz Pulliam Weston with MSN Real Estate suggests the following timeline as an ideal one for someone purchasing their first home and for the most part, we agree with her. This week we will talk about more immediate strategies. 

Learn about mortgage options. While the mortgage market has settled back to more 'normal' conditions it can still be confusing tangle of unfamiliar terms and acronyms. ARMs, FHA, VA, LIBOR, are all a part of the mix. The author recommends sticking with the traditional 30 year fixed rate. But be aware that even though the interest rate is fixed, increasing costs for insurance and taxes will cause even a fixed rate payment to increase over time. Don't rule out adjustable rates. In today's market no lender is going to let you borrow more than you can afford. Shop for a mortgage without mortgage insurance. Usually a lender requires you to provide mortgage insurance with a down payment of less than 20%. Less than 20% down means more risk to the lender and mortgage insurance protects them against an eventual default.  

Start calculating how much house you can afford. Your housing expense should not exceed 25% of your gross income. That includes your principal and interest payment, taxes and insurance. Once you have decided how much you can afford you can always opt to pay taxes and insurance separately, assuming your lender will allow that. Think of it this way they accumulate money on a monthly basis for annual payment of taxes and insurance. And they don't pay you interest. If you're a good saver, then put the money to use yourself. Of course, if your habit is to live paycheck to paycheck you'd better let the bank take care of it. 

Research all of the costs of owning a home. When you purchase a home there are so-called 'closing costs' associated with the transaction. These can take the form of origination fees paid to the lender for providing the funds. Origination fees are actually pre-paid interest and are a variable proportionate to the interest rate you pay. Documentary stamps, title insurance, proration of taxes, title insurance, you can expect to pay anywhere from 1-3% (of the mortgage) over and above your down payment. Drop into the local bank and ask for a Good Faith Estimate (GFE). Find out what utilities will cost in your new home. You can always ask the current owner for copies of their bills, but be aware that this can only be done after a property is selected and no two families will use utilities identically.  

Attend a home buyer's seminar. Many banks or banks in association with real estate firms will put on free seminars for first time buyers. Obviously they are hoping to obtain your business but it is usually a low pressure non threatening atmosphere in which to learn more about the process. 

Adjust your saving strategies. By now you've begun to save for your new home. But what you've learned may cause you to increase your savings. A bigger down payment means you can afford more home and may mean you can avoid buying mortgage insurance. It also means lower payments and more discretionary cash.  

Next Week: 3 months out 

USD to KYD Exchange Value: 0.82

USD To GBP: 0.76214

USD To CAD: 1.27998

USD To CNH: 6.3209

Breakfast at Tiffany's benefit at the Ritz-Carlton attracted about 200 donors for the annual Cayman Islands Cancer Society fundraiser. 

On Cayman Brac, one Christmas tradition centres around the Lions Club's Santa Claus riding through the island on Christmas Day delivering gifts to the children. It is also customary for the club members to visit the homes of the elderly and personally deliver gifts to them before Christmas Day. 

The Rotary Club of Grand Cayman's annual Christmas Tree lighting was held in Celebrations Square in George Town Dec. 1. The lighting has been an annual event of the Rotary Club for 43 years. 

Barnes Dance Academy Ltd, in collaboration with Hopscotch Studios and Celebrations, hosted its 4th Annual Community Christmas Parade on Dec 6 in Heroes Square, downtown George Town. 

Cayman Islands Crisis Center will receive proceeds from the sale of Christmas ornaments at their Enchanted Christmas Store in the Mirco Centre. The ornaments are available in Flame Red and Velvet Green. 

We could go on - but you can see the variety of fun and worthwhile events throughout the Caymans this time of year!