Save Money on Your Summer Vacation

Spring is here! (Did it ever leave us in San Diego?),

Summer is obviously on the horizon. That means hotter temperatures, sunscreen and family vacations. The annual summer vacation doesn’t have to break the bank; whether you rely on a travel agent or the Internet to make your travel plans, it’s easy to save money on airfare, hotels and more.

The information I’m including you this month is intended to help you save a few dollars on your travel plans. From social couponing websites, such as Groupon and LivingSocial, to discount travel websites to AAA and Costco, there have never been more ways to save money on your summer travel plans. Since you just have to get away at the last minute sometimes, page two offers tips to save money on last-minute travel. Feel free to share this great information with your family or friends. You can download the pdf here:

How to save money on your vacation

For you on-line readers, here is also a pdf on how to save money on flights:

Saving Money on Flights

Summer is also our traditional buying (and selling) season. If you know a friend or colleague who has a real estate need, or just advice, please let me know. Also please call me if you would like a market analysis of your home or more information about our local real estate market.

Is Now the Time to Buy or Sell?

With spring on the horizon, many people are beginning to think about selling their homes. Even those not currently considering a move are curious about the state of the American housing market.

 

The information I’m enclosing this month is intended to give you an overview of what’s going on in the national housing market. The statistics offered on page one provide a glimpse into current trends and predictions for the year, while page two delves into the financing choices of recent homebuyers. Feel free to share this timely information with your family or friends.

You can download the article here: The State of America’s Housing Market!

As a bonus this month, on the back of this letter are some interesting facts on what Americans are buying. That article is available here: What Americans are Buying

Please call me if you would like a market analysis of your home or more information about our local real estate market.

I amavailable at FrankAtrash@gmail.com or at 619-739-0008

Is this the time to stop renting and buy?

FACTS:

1. Rents are increasing. This is economics 101. Supply and Demand. As families lose their homes to foreclosure, they cannot get loans and so they have to rent. Thus: Increased Demand.
2. First time buyers are at historic highs and builders in San Diego battle regulation and shortage of land. Both of these factors limit the supply of rental homes.
3. Thus increased demand and limited supply. Result: Rapidly rising rents. Statistics indicate that rents rose by 4-8% last year and are expected to do the same this year.
4. Interest rates are at a 40 year low. These rates are unheard of (6-7% is a ‘normal’ rate) and they will not last forever. As the economy improves inflation will follow and so will interest rates. If you can lock in these rates now your mortgage payment will not increase for the next 30 years.
5. Essentially the outflow of cash for housing (rent = mortgage) will remain fixed with a mortgage and will increase if you rent.
6. Housing is having a 50% off sale. This will not last. Why? See 1 and 2 above. It does not take a rocket scientist to figure out that savvy real estate investors see this as clearly as I do. They can very quickly do the calculation and see that if they buy a home and put a renter into it, they will IMMEDIATELY make money (just a little now, but lots more later), and in less than no time have their tenant pay off their mortgage and earn all sorts of cash flow, let alone have an asset that has appreciated along with inflation (at least). Housing will not just continue to fall. The rule of arbitrage in the capitalistic market will prop up prices. Investors will fill the gap as rents increase and mortgages stay the same.
7. The mortgage Interest Deduction (MID) makes housing even cheaper. Most people do not buy based on price but on cash flow (it is a secondary issue in my mind, important but not as much as cash flow). If you buy right, your cost of living in a home can be LESS than renting.
8. Inflation. Historically, rents keep pace with inflation (as do the values of real estate). So while your cost of rent goes up with inflation, your mortgage actually gets cheaper! WHAT! Yes your fixed cost ‘feels’ like less because of inflation. Imagine if you could buy a gallon of milk at the same price it is now for the next 30 years (or as much as it was 30 years ago). You would buy as many as you could. THAT’s how a mortgage works. You fix the cost of housing for the next 30 years…and then it becomes FREE! What a deal.
9. Lack of a Down Payment or Poor Credit: If you do not have either, this is no longer an excuse. The government, via the FHA loan program, is making it possible to buy homes with as little as 3% down (that’s $9,000 on a $300,000 home). And credit is not as important in most cases. You do need a job though, and I think most readers of this article have one of those.

With this backdrop I DO NOT understand why more renters are not examining the option of buying.

Allow me to do a No Cost, No obligation evaluation for you.  My lender and I will look at your situation and do a side-by-side comparison of renting vs. owning for you. Then YOU decide.

PLEASE do not let this opportunity pass you by without at least examining the possibility.  Remember you soon forget the mistakes you make but you always regret the opportunities you missed.

Contact me at FrankAtrash@gmail.com or at 619-739-0008

It’s Tax Time: Are You Prepared?

Hello and Happy Valentines Month.

Did you know that taxpayers spend over 3.5 billion hours each year preparing for and completing their tax forms?^* Given that the instructions for the forms seem to increase each year, this number is likely to increase. Even if you’re among the 3-in-5 Americans who pays a professional to complete their tax forms, there are ways to streamline the process and make it as painless as possible.^*

This month, I’m sending timely information designed to help you prepare for tax time. Page one offers tips to help you become organized, including things to keep in mind if you bought a home, got married or donated to a charity in 2011. Page two provides an overview of three of the most popular tax preparation software programs on the market. Feel free to share this pertinent information with your family or friends. You can download that pdf here:

Tax time

As a bonus for my on-line readers here is report showing some of the major benefits of home ownership:

Benefits of Home Ownership!

Please call me if you would like a referral to a tax preparer in our local area.

Oh, by the way … if you know of someone who would appreciate the level of service I provide, please call me with their name and business number.  I’ll be happy to follow up and take great care of them.

* Source: President’s Advisory Panel on Federal Tax Reform

The Top Mobile Gadgets for 2012

Hello and Happy New Year!

The feeling from the front lines of Real Estate is that the worst is behind us and 2012 is our ‘turn-around’ year! It is a GREAT time to be buying property now, whether for investment or to live!

Over 35% of American cell phone owners have a smart phone.* While the majority of smart phone owners use the device to access the Internet daily, one-in-four conduct most of their online activities on the device, which is expected to grow in the coming years.

Technology is being developed every day that allows us to carry our favorite photos, books, songs, videos and business and personal documents; organize our lives, and connect with loved ones and colleagues from a gadget that fits in the palms of our hands. This month, I’m sharing information about the latest smart phones, tablets and e-readers that are designed to entertain, streamline productivity and boost connectivity anywhere in the world. Feel free to share this useful information with your family or friends.

Top Devices for 2012

What to do with your old electronic device when you buy one of these new ones? Here is a brief overview for you to help protect the environment and future generations:

How to dispose of electronics

Changes for 2012 in my company are bold and I invite you to review those goals here:

Changes for 2012

Please let me know how I can help you achieve your goals.

Call me anytime and please don’t forget, I am never too busy for your referrals!

*Source: Wall Street Journal, July 11, 2011

2012 Home Sales: Positives on Many Fronts

2012 Home Sales: Positives on Many Fronts.

Courtesy of CAR. Forget all the fear about the “Double Dip”. This is a once in a lifetime opportunity to buy real estate at record low prices with record low financing. Ask me how to buy for cash flow!

How to Set Attainable Goals in 2012

Hello,

It’s that time of year again, when we begin to think about the future and what we’d like to accomplish in the New Year. Clearly defined goals are vital to creating the life that you imagine.

Setting goals can be an intimidating process for many. However, the information I’m sending you this month explains how to create feasible and measurable goals that will drive you forward and help you achieve your dreams. While the first page explains how to set SMART goals through visualization, page two offers suggestions to help you overcome the common obstacles to achieving your goals:
Goal Setting

As an extra gift to you this holiday season I am also including this piece on home ownership :

Own your own home

Have a wonderful holiday season and don’t forget I’m never too busy for your referrals.

Feel free to share this useful information with your family or friends

Oh, by the way … if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I’ll be happy to follow up and take great care of them.

Get the Most out of Black Friday Retail Deals

Hello again and Happy Thanksgiving!

This holiday season is right around the corner and you know what that means: Black Friday. While many people brave the crowds before dawn to capitalize on big savings from major retailers, others sleep in and surf the internet for similar deals.

Whatever your strategy, this month’s information helps you prepare for the holiday shopping season. The first page offers tips and tricks to help you score deals on gifts for everyone on your list. Page two provides valuable information about how to avoid scams and protect your credit and debit card information both in the store and online. Feel free to share this useful information with your family or friends.

To open this pdf click here: Holiday Deals

As an extra bonus this holiday, click here Smart phone apps for “5 Free Apps” to save you even more money this Holiday Season.

Have a safe and happy Thanksgiving!

Housing Now More Affordable in San Diego

Courtesy California Association of Realtors (C.A.R.)

See tables below!

Lower home prices and record-low interest rates in the third quarter of 2011 contributed to an improvement in housing affordability for California home buyers, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 52 percent in the third quarter of 2011, up from 51 percent in second-quarter 2011 and was up from 46 percent in the third quarter of 2010, according to C.A.R.’s Traditional Housing Affordability Index (HAI).

C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California.  C.A.R. also reports affordability indices for regions and select counties within the state.  The Index is considered the most fundamental measure of housing well-being for home buyers in the state.

“While housing affordability has improved in most areas of the state, would-be buyers, especially first-timers, are having difficulty getting loans,” said C.A.R. President Beth L. Peerce.  “When affordability is high, first-time buyers typically make up a large share of the market, such as in the mid-90s, when first-timers made up half of the market.  First-timers have made up just a third of the market this year, illustrating the hurdles many home buyers are experiencing in qualifying for a home loan.”

Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011.  The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.  The effective composite interest rate in second-quarter 2011 was 4.85 percent and 4.78 percent in the third quarter of 2010.

Regionally, housing affordability rose in most counties in the San Francisco Bay Area but was down in Los Angeles County and Fresno County.  At 77 percent, San Bernardino County was the most affordable, while San Mateo County was the least affordable, with only 25 percent of households able to purchase the county’s median-priced home.

Visit http://www.car.org/marketdata/data/haitraditional/ to see C.A.R.’s historical housing affordability data.  For first-time buyer housing affordability data, visit http://www.car.org/marketdata/data/ftbhai/.

CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index

C.A.R. Region/County	3rd Qtr 2011	2nd Qtr 2011	3rd Qtr 2010
California single-family existing	52	51	46	r
California condo/townhome	62	60	57	r
Los Angeles Metropolitan Area	53	52	49
Inland Empire	69	69	66	r
San Francisco Bay Area	38	35	31	r
United States	67	67	64
San Francisco Bay Area
Alameda	36	35	31	r
Contra-Costa (Central County)	27	26	21
Marin	25	24	23	r
Napa	48	47	41
San Francisco	26	24	22
San Mateo	29	22	21
Santa Clara	34	32	30
Solano	75	75	71
Sonoma	46	46	40	r
Southern California
Los Angeles	42	46	38	r
Orange County	33	31	28	r
Riverside County	65	64	61	r
San Bernardino	77	77	74	r
San Diego	42	41	38	r
Ventura	45	41	40
Central Coast
Monterey	56	56	56	r
San Luis Obispo	40	37	36	r
Santa Barbara	37	35	26	r
Santa Cruz	32	32	28
Central Valley
Fresno	69	70	65	r
Kings County	76	72	64
Madera	74	72	68
Merced	74	76	75	r
Placer County	64	64	60
Sacramento	72	72	68
Tulare	73	73	68

r = revised

*   Los Angeles Metropolitan Area is a five-county region that includes Los Angeles County, Orange County, Riverside County, San Bernardino County, and Ventura County **  Inland Empire includes Riverside County and San Bernardino County ***S.F. Bay Area has been redefined to include the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma

CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index

C.A.R. Region	Housing Arrordability Index	Median Home Price	Monthly Payment Including PITI	Minimum Qualifying Income
California single-family existing	52	$292,120	$1,540	$61,530
California condo/townhome	62	$228,810	$1,200	$48,190
Los Angeles Metropolitan Area	53	$275,950	$1,450	$58,120
Inland Empire	69	$172,090	$910	$36,250
San Francisco Bay Area	38	$491,920	$2,590	$103,610
United States	67	$169,500	$890	$35,700
San Francisco Bay Area
Alameda	36	$463,030	$2,440	$97,520
Contra-Costa (Central County)	27	$610,970	$3,220	$128,680
Marin	25	$786,320	$4,140	$165,620
Napa	48	$340,150	$1,790	$71,640
San Francisco	26	$632,580	$3,330	$133,230
San Mateo	29	$703,000	$3,700	$148,070
Santa Clara	34	$587,500	$3,090	$123,740
Solano	75	$192,350	$1,010	$40,510
Sonoma	46	$342,230	$1,800	$72,080
Southern California
Los Angeles	42	$324,830	$1,710	$68,420
Orange County	33	$520,310	$2,740	$109,590
Riverside County	65	$200,970	$1,060	$42,330
San Bernardino	77	$133,290	$700	$28,070
San Diego	42	$369,800	$1,950	$77,890
Ventura	45	$420,400	$2,210	$88,540
Central Coast
Monterey	56	$265,000	$1,400	$55,810
San Luis Obispo	40	$357,710	$1,880	$75,340
Santa Barbara	37	$398,180	$2,100	$83,860
Santa Cruz	32	$490,000	$2,580	$103,200
Central Valley
Fresno	69	$142,690	$750	$30,050
Kings County	76	$130,530	$690	$27,490
Madera	74	$120,830	$640	$25,450
Merced	74	$120,210	$630	$25,320
Placer County	64	$264,980	$1,400	$55,810
Sacramento	72	$166,580	$880	$35,090
Tulare	73	$120,170	$630	$25,310

Call your Representative, with one vote they can increase the value of your home!

Facts: Courtesy California Association of Realtors (CAR). The opinions are my own!

My prediction: Homes priced below the limit (whatever that limit will be) will rise in price over time, while those above the limit will languish. Read below for details.

Senate votes to extend loan limits

Late last week, the Senate passed an amendment to an appropriation bill that
would reinstate the conforming loan limits to $729,750 through December
2013.  The Senate and House now are working out the differences between
the Senate and the House bill, which the House passed earlier this year.
C.A.R. also is working with the California Congressional Delegation to ensure
this provision is included in the final bill.

NAR worked tirelessly to keep this issue alive and collaborated with senators
to explain the negative impact the lower loan limits are having on the market.
California Sen. Dianne Feinstein played an instrumental role in ensuring the
loan limit amendment was included in the bill.

Why will this positively impact the value of your home?

It’s Economics 101. Increasing the limits will allow more buyers to buy homes in the higher price ranges using the a FHA loan of 3.5% down. More demand means higher prices.

In the final analysis that’s what dictates the prices of ALL goods, including real estate. Anything that increases demand will increase prices. So will decreasing supply. We are currently at a 5 month supply of homes, that’s below the 6 month benchmark which has traditionally marked the sign of a balanced market.

Call to discuss anytime. And please don’t forget…I am never to busy for your referrals!