Top 3 things to consider when deciding to own or rent in California


Is your employment stable enough for the next 3 years?

Given the current economic state, knowing you have a job that is secure is very important, also prices are not going to rise much, if any over the next few years, so there is unlikely to be any equity gain in a home you purchase now.

If you are going to purchase a home with 10 – 20% or more down, and find you have to sell within a couple of years there should be no problem, however if you are going to use an FHA loan with just 3.5% down, then you may find yourself upside down if you have to sell.

Obviously if you are planning on staying in your home for many years, then current interest rates and prices make it extremely opportune.

Are you single, or already married with children?

A 1-bed condo doesn’t really fit a family, although it is perfect before you meet your significant other, so bear in mind that size really does matter. Can you afford to look at single family homes or larger condos, if so then do so, it will be a much better return on investment down the road.

Is it really cheaper to own than rent?

Depends on your neighborhood but with interest rates down around 4%, and you factor in taxes and mortgage insurance, you are looking at approximately $600 per $100,000 BORROWED. 2-bedroom condos are renting an average of $1500-$1800 around town right now, if not more, and you can easily find a 2-bedroom condo within the metro areas of San Diego priced UNDER $200,000, in fact over 100 are currently available, making your mortgage payment significantly LESS than a rent payment.

For more information about mortgages, contact Scott Schang, Broadview Mortgage Company - http://www.broadviewmortgagecorp.com/EmployeeDetail.aspx?groupid=430&EmployeeID=12444&

Food for thought, let me know if you need more information, I AM HERE, I CANHELP!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

Real Estate Market Update - San Diego

 

Here's the latest real estate update for the city of San Diego as of October 5th, 2011.

Over the past two weeks we have had 326 single family homes and 225 condos/townhomes newly listed.  The average price of the single family homes is $525,823 with $290 per square foot, the highest listing is priced at $2,495,000 and the lowest is just $95,000.

The highest priced home is not actually a home, but a lot in the Santaluz development of Fairbanks Ranch, with complete plans and permits to build a custom 6,850 sq ft home with 4 bedrooms and 4.5 bathrooms, the lot has panoramic views and is .7 acres.  Now the lowest home is down in the Imperial Avenue area just west of City Heights, it's a contractor special so cash only please, has a new foundation but not much else!

We hae had 225 condos/townhomes newly listed also in the past two weeks, the average price is $358,994 with $296 per square foot, the highest listing is $5,500,000 and the lowest just $49,000.

The highest priced is a penthouse at the top of the Harbor Club downtown, 360 degree views, private elevator and entrance, 3 beds, 5 baths, 4,170 square feet, and your monthly HOA bill will be $2,117.00!  At the other end of the scale we have a small 1 bed, 1 bath short sale fixer in City Heights, $250 HOA dues per month.

For your own personal market update just give me a call or email me, it is all completely free!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
janealoveday@gmail.com
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Home Prices Dropping ... Why is that Good?!



Economists are predicting a FURTHER 2.5% drop in home values for 2012 - they further predict that this will be followed by an anemic growth rate of only 1.1% through 2015...


So why do I bring you such dire news??? And why do I find it exciting???

Because for everyone that is 'waiting for the market to recover' before they list their home OR you are refusing to reduce their price because they say 'I don't have to sell' ... remember that if you do nothing, it will take you until 2016 just to get back to where values are TODAY!

Granted, each sub-market is different but even with the assumption that we Southern Californians are 'better-off', you have to consider that the rest of the nation will act as an anchor - slowing down our own recovery...

Remember also that all news can be interpreted two ways - I see this as creating an opportunity, whether thinking of buying or selling - you should also!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

How does 3% of your purchase price granted back to you sound?

 

Attention First Time Homebuyers !!!  Did you know there is a program specifically for you from the State of California that offers 3% of your purchase price which can be applied toward your downpayment or closing costs.  It's like a 0% interest loan which does not need to be repayed until you sell or refinance your home down the road.

You could potentially purchase a home for a s little as 1% of the purchase price using this program, however there are restrictions (of course) !  You must live in your home for at least 3 years, and there are income restrictions depending on how many are in your family, the restrictions currently in San Diego are from $63,400 up to $119,600 currently.

However as an option in this economy, it's a great program, check with my buddies at http://www.homeownershipuniversity.com/ for more information and eligibility status.  Here's to helping you obtain the American Dream of homeownership!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

http://www.twitter.com/sdrealestate

Buy a home up to $415,000 with 3% in FREE grant monies!

CHF Platinum is a 3% home buyer grant that can be used to cover down payment or closing costs.

This program is, at this point, perpetually funded with no pre-determined limit to availability of the down payment or closing cost assistance.

The CHF Platinum program is being administered by the National Homebuyer Fund (NHF).

The top 3 things you need to know about the CHF Platinum Grant

1. You must use an approved lender (brokers not allowed) approved to offer a NHF first mortgage.

2. The first mortgage can be either a FHA, VA or USDA loan at the published interest rate. Lenders are not allowed to determine the interest rate for this program.

3. Home buyer must meet income requirements for CHF Platinum program. Income limits are limited to $89,880 in San Diego County.  The maximum purchase price is $415,000.

 This is an incredible opportunity for home buyers to take advantage of historically low interest rates as well as affordable home prices.

Just think, you are looking to buy a home for $300,000 for example, you could receive $9,000 in FREE money to help toward either your downpayment or closing costs.

Want more information, just let me know!




Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

If prices continue to fall, why should I buy now?

While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer.

That means you have to take into account what your monthly payment will be, considering not only the price of the home, but also the interest rate of your mortgage.

Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of your mortgage.  Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. 

It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan.  Also the knowledge of your Realtor about the area(s) in which you are looking for a new home, what prices have done and are doing, whether the home you are looking at is a short sale or not, or foreclosure, will also help guide you as to what your best decision should be.

Interest rates are still under 5%, they are historically low, if prices drop even further, and the interest rate rises, your buying power can drop considerably. 

America is based on home ownership, your landlord understands this, are you ready?

Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate

A Quick Diary of a Short Sale!

I took a property listing back in December 2010, the owners of the property had already received formal 'Notice of Intent to Foreclose' which means they were being advised by their bank that their payments were in default and the bank was looking to eventually sell it to recoup their costs.

I visited the property, it was in the worst possibly condition you could imagine, garbage, ceilings caving in, evidence of rodent infestation, carpets wet from the winter rains, overgrown vegetation outside and a very murky green pool!  However a home just up the street had sold for a very nice price, so I listed it according - half the price!

WOW - was I to be surprised, 16 all cash offers poured in the first week, ALL CASH!!  It was not only raining through the roof but raining investors wanting a great deal.  I advised them all to obtain contractor bids before submitting their highest and best offer.  We finally went into escrow with one investor.

Five months down the road, we finally obtained 1st and 2nd loan approval (same bank) and the investor backed out, two days before closing ..... what's a good Realtor to do?  I went back to the original other 15, asked if they were still interested BUT their offer now had to be at the current pre-approval price (which was quite a bit igher than the original asking price).  Sweetness happened, several came forward, the first, and quickest to respond, is now going to close on this property 4 days before the actual auction date, will gut it, rehab it and hopefully make his own investment dollars out of it.

Long story short - NEVER GIVE UP ON YOUR SHORT SALE !!  It's an incredible amount of paperwork, phone calling, liaising with your sellers, but just simply being on top of it.  Am patting myself on the back for sticking in there and learning a lot during the process.  Remember, I am here, I can help!

Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

How to Manage your Debt!

Do you have a lot of debt?  Are you worried about managing your debt?  Here are several things you can do to maintain your debt and keep your credit in good rating:

KNOW WHAT YOU OWE!

Gather up all your statements and determine how much you owe in total. If you don't like the answer, this negative exercise can give you the oomph to get going.

HAVE A SPENDING PLAN!

Have a spending plan for your income is the best way to ensure that you are spending your hard-earned money in the way you want and most importantly, in the way that assures your financial success.

REVIEW YOUR TAXES!

Review your income tax withholding. If you are receiving a tax refund of more than $600, you are providing an interest-free loan to the IRS. A better idea is to adjust your withholding -- have less money taken out for income taxes -- and use those funds earning zero percent interest to help pay down your high interest consumer debt.

START A SAVINGS PLAN!

Start a savings plan. The simplest way to avoid unwanted debt is to have money set aside for those unexpected or large expenses that we all have. When you have money taken from your paycheck or checking account and automatically deposited into a savings account, you will hardly notice. But you will be building a very important financial tool -- liquid savings. Your savings goal should be six months to a year of living expenses.

COMMIT WHAT YOU DON'T HAVE YET!

Commit money you don't have yet to paying down your debt. Use at least 50 percent of any new raises, bonuses, tax refunds or other source of additional income to give yourself a boost in paying off expensive debt.

START AUTOMATIC ELECTRONIC PAYMENTS!

Set up automatic electronic banking payments. A late payment can trigger a hefty late fee, and may result in an increased interest rate on future credit card purchases. Electronic payments will help avoid a payment arriving late and increasing the cost of your debt.

REVIEW YOUR CREDIT REPORT!

Check it for any innacuracies, you can get a free copy at annualcreditreport.com  If you find errors dispute them with the credit bureau that reported them.

If you still need help contact a free non-profit agency such as nfcc.org or aiccca.org.

Once you have got your debt and/or credit secure, and are ready to look for a new home, let me know, I am here, I can help!


 
Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego

Preparing for the purchase of a home

• When preparing for the purchase of a house, there are several items buyers must think about, such as their main priorities.  Buyers should determine whether it’s more important to live in a particular type of home, such as a single family home with a garage, or in a particular neighborhood.
• Some neighborhoods hold value more than others during a housing downturn.  Buyers can work with a knowledgeable REALTOR® to find a neighborhood that meets their needs as well as one where home values are stabilizing or rising.
• Once a buyer finds a home he want to make an offer on, he should be sure not to make a low-ball offer. Some sellers are willing to negotiate and others are not.  Working with a REALTOR® can help ensure the buyer is dealt with fairly and guided through the process.

 Click here to search the entire San Diego MLS for your next home!

Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego

What is a Pre-Approval for buying a home?

When starting to look for a new home, the most important first step is to obtain a pre-approval from a Lender.  They will check your credit score, your credit history, your past two years of tax returns, and verify your employment income.

The higher your credit score, the lower your downpayment and monthly payments.  If your credit score is below 640 or 660 you may have higher fees to obtain your mortgage or will need a higher downpayment.  You can improve your chances by pulling your credit report and ensuring you are not being unfairly penalized for old, paid or settled debts.

Also STOP applying for new credit of any sort, and don't charge anything large during the purchase process! 

Contact your bank, credit union or private lender such as Broadview Mortgage Corp, and check their fees for obtaining your loan, also ask what amount you'll need for closing costs, and what points you maybe paying to obtain your mortgage.

Once you have your pre-approval you can start looking for a new home, when you find your new home, your pre-approval will need to be submitted with your offer to purchase.  It is better to be prepared ahead and be armed with the knowledge of what you will need which will make your new home search much more exciting!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

Facebook and Your Business?

Are you using Facebook to market your business?  This is a question I recently posed on LinkedIn.  I got many different responses, but Facebook seems to be the natural way to market your business instead of the old fashioned way of distributing flyers, cold-calling, and doing the rounds of businesses that may help you.

As Facebook enters it's second set of 500+ million users world wide, Facebook is one of the best arenas to get yourself recognised, known and respected, with due diligence not to post too much personal content.  That is also why I have a personal page and a business Facebook page.

However, Facebook is for some, a very personal environment, for me it is both.  On my business Facebook page, I can interact with my clients, potential clients, while letting them see that I am indeed also human, but also have useful information that they may value once they think about potentially buying a new home.  I can include links to homes for sale, pertinent market information, interest rate updates, what maybe happening in certain areas of my city, and Facebook, after all, is a free forum.  If used correctly, I believe it is a great way to interract and generate interest in my business of real estate.

Here's to another 500 million users, all potential clients and friends, on Facebook!

Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell

http://janeloveday.com 

http://www.facebook.com/realestatesandiego

http://www.twitter.com/sdrealestate