Archive for the 'Finance' Category
San Diego: Still Want To Rent??
Filed Under categories: Buying, Finance, News You Can Use, Real Estate News, Real Estate Stats
posted by Raye on April 22nd, 2008
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When a market changes from a seller’s to a buyer’s market, it’s not uncommon to for sellers to try and rent and “wait it out”, if they can and for buyer’s to rent and sit on the sidelines licking their chops and waiting for “deals”. But, at some point, it becomes self-defeating trying to time that ubiquitous “bottom” and it’s time to get on with it!
Following are some statistics that should every current renter should know before signing another year lease:
The Department of Commerce reports that between 1995 and 2004, the average renter accumulated a little over $4,000 in net worth.
The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month.
In other words, each month that the average first-time buyer continues to rent, it costs them $1,500 in lost wealth accumulation.
Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction.
Have we hit bottom yet?
Filed Under categories: Buying, Finance, News You Can Use, Real Estate News, Selling
posted by Raye on December 10th, 2007
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Timing the bottom (or top) of a market is a probably one of the most difficult and frustrating pursuits. If we knew where the bottom was (or the top) wouldn’t everyone be rich in real estate and stocks? These benchmarks are never revealed in the current time, only in retrospect. It takes somewhat of a distant perspective to locate when and why a bottom was hit or when a high was reached. But, there are signs and indicators the truly savvy investor can look for and react accordingly.
Another key factor to keep in mind if you are buying, is how long you intend to hold the property. At this point in the market, as long as you intend to hold for 3 to 5 years, don’t wait. Make an offer. There’s no magic in another six months. Really, there isn’t, not in San Diego. Might as well get in there and enjoy your new home.
Click here to read “Buyers are looking for market bottom” from The San Diego Union Tribune
Mortgage Crisis
Filed Under categories: Buying, Finance, News You Can Use, Real Estate News, Selling
posted by Raye on August 23rd, 2007
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In case you haven’t heard, the media has a new darling. They have taken an issue, albeit a serious one, and transformed it to the status of Armageddon.
I’m not denying the current mortgage situation is creating financial havoc and confusion, but I am suggesting that it is a problem that can be solved and lessons will be learned. Some of those lessons should have been learned the last time by lenders who got sloppy in the underwriting department and consumers who got a little too excited and didn’t quite think things through and plan ahead wisely.
The point is that there was a last time and there will probably be a next time with slightly different circumstances and effects. But, last time was corrected and this time will correct, too.
The following article has some great information and explanation for the current problems most of us are facing in one way or another. Greg Wickstram, with First Capital Mortgage, has written an informative and helpful piece leaving out the hysteria and headline grabbing alarms. It is a factual and balanced piece and I think you will find it helpful. Please let me know your thoughts and comments.
Excerpt from Greg’s ‘Mortgage Market Crisis”
Baby Boomer Tax Break
Filed Under categories: Buying, Finance, News You Can Use, Real Estate News, Selling, Taxes
posted by Raye on July 3rd, 2007
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Have you heard about Revenue and Taxation Code section 69.5? Well, if you are at least 55 years of age living in a property eligible for this Homeowner’s Exemption or receiving the Disabled Veterans’ Exemption, you are going to want to read on. (You’ll thank me later) Basically, this law allows you to transfer your tax basis on your current residence to a replacement dwelling of equal or lesser value within the same county. This exemption can only be taken one time.
In general, equal or lesser value means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property: 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property; 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.