Given that it is Earthweek, this seems to be an appropriate post. The synergy of cutting your home heating bill, saving your money, and helping mother Earth can coexist!
Solar Power: Consider heating your home with the sun's help. Energy from solar panels or using solar heat to supplement your normal heating source is cost effective in most parts of the world. The initial cost may seem higher, but over the long run it costs the least and there are generous tax rebates for installing solar panels.
Thermostat: Temperature variations near the thermostat will affect the whole house. Be sure your thermostat is located in an area that is not too cold or hot. Install an automatic timer to keep the thermostat at 68 degrees during the day and 55 degrees at night. If it seems chilly - put on a sweater.
Sunlight: Open up those draperies and shades in winter to let in the heat from the sunshine. If you're worried about fading the furniture - use a slipcover. Keep shade trees from blocking the suns rays into your house. Prune any branches that block the sunlight. If you've installed awning to block the sun in the summer make sure you take them off before the cold weather hits. Keep windows closed during cold weather, but be careful to "air out the house" on a regular basis to avoid buildup of any toxins.
Windows: Check to see that glass in all windows have fresh putty. If the putty in your windows is dry and cracked you may want to consider adding some newer sealant. Also seal any visible cracks with weather-stripping or cloth - newspapers will do if you're desperate. Repair all cracks and holes, large or small, in your roof, walls, doors and windows. Make sure you seal off anywhere that heat might escape. You may be able to cut heat loss in half by weather-stripping doors and windows. Don't forget the weather-stripping on your attic and basement doors to prevent heat from escaping.
Insulation: Think about upgrading the insulation in your home. If you haven't already, insulate your attic and all outside walls. Insulate floors over unheated spaces such as your basement, any crawl spaces and your garage. You actually lose more heat through poorly insulated floor spaces and basements in the average house than through drafty doors and windows. The savings here could be as high as $500 a year!
Furnace: Before you use your furnace for the first time in the cold weather have it serviced. Many gas and oil companies provide this in your service contract or for a small additional fee and it could amount to savings of up to $400. Inspect your furnace during the cold months. Keep parts clean. Replace air filters when necessary. Clean filters can save up to $60 a year on heating costs. Make sure that furnace cold air and warm air registers are not obstructed and vacuum them clean once a month. Turn off your furnace pilot light when heat is not necessary.
Fireplace: Check for cracks around fireplace. Keep heat in by caulking all cracks. Keep fireplace damper closed when not in use. Turn off heat when the fireplace is being used. A glass front or glass screen will reduce fireplace heat loss.
Pots and Pans: Cover pots and pans when heating liquids. Cooking utensils with flat bottoms and tight fitting covers save heat. Be sure pots and pans are right size for range burners and elements. Plan some meals so that entire meal can be prepared in oven at same time. Thaw frozen meats to almost room temperature before cooking. Turn off your oven about five minutes before cooking time is over. The heat in the oven will keep on cooking your food, and you'll save on gas or electric bills. Don't open the oven often to check food while it's cooking. You lose 20 to 50 percent of the heat each time you do - and you slow down the cooking process.
Government assistance: Check to see if you qualify for any government assistance with your heating bills if you have a low income or are a senior citizen on a fixed income. Check efficiency ratings before purchasing appliances of any kind. Then check tax breaks and homeowner's insurance policies for savings when you add energy conserving items to your home.
Utility Company: Check with your local electric company to find out if they have times during the day when the rates are lower. Using the oven, dishwasher, washing machine and other energy demanding appliances during these times may lead to big savings. Be careful. Some plans may make you pay a premium price for using electric during peak hours and you'll need to make sure to do wash and other chores during the off hours. Talk to your utility company for other suggestions for saving money on your heating bills. Many companies will actually send someone to your house for a home energy audit and offer suggestions to help you use less energy
Around the Web, check out more facts and information on how to save money on the those monthly electricity bills, and join the legions of homeowners who are "going green" and cutting dependency on foreign oil — in a fight to both cut costs and save the environment....
The Home Energy Saver - U.S government site featuring a home energy calculator for locations nationwide plus energy saving tips, tons of related resources, FAQ, glossary.
Energy Star - U.S. government-backed program helping businesses and consumers protect the environment through better energy efficiency, with online guides to lighting, appliances, heating & cooling, tips, facts and related resources.
EERE: DOE Financing Solutions - Homeowners - Energy efficient homes can save money in more ways than one. With guides to solar energy, consumer information for energy efficient appliances, insulation & sealing, wind turbine systems, landscaping tips and more for apartment dwellers.
Consumer Guide to Energy Savings - From the American Council for an Energy-Efficient Economy including recommendations on energy-efficient appliances, a home energy checklist, plus guides to energy efficient windows, air conditioning systems, halogen lighting, and other money saving tips.
Efficient Windows Collaborative - The benefits of energy efficient windows, how they work, and information on the selection process with a good listing of related resources.
Saving Electricity - The complete guide by "Mr. Electricity" with pages of advice on saving money & reducing consumption, with tips & tricks on using particular household appliances and more on alternative energy sources.
Source: www.chiff.com
Please let me know if you need to get a physical inspection done to evaluate the energy efficiency of your home. I have access to licensed professionals that do exactly this. In fact, now that I have been selling and managing real estate for so long, I have access to licensed professionals that I can trust for just about anything. You trust me and I will vouch for those that I refer to you just as if they were doing the work on my very own home. For your real estate needs, you need a guide. I can be easily reached at 858-676-5250 or via email at rashid@rashidrealty.com.
Tuesday, April 19, 2011
Saturday, April 9, 2011
Intelligent Solutions for Managing your Rental Income Property
The income one procures from owning rental properties may bring more cash flow into your life, but it requires a great deal of time, energy, and comes with its fair share of stress and problems. On the flip side, the stress is reduced because a well-chosen investment will pay for itself in the long run. In order to make this idea work, you must plan carefully. You must choose the right management approach and implement an effective screening system in place. This approach will help you get the right tenants while maintaining your property for best possible resale. It is important to give your property and tenants the attention each deserves. A commonly asked question is why hire a professional real estate firm when we could easily do the same work on our own?
The answer is straightforward: Experience, knowledge of cost effective advertising venues, the ability to screen tenants carefully, and tried relationships with appropriate trusted repair technicians. The headaches involved in managing a property are avoided only using time intensive, good tenant relationship management, and by establishing appropriate systems and processes in place to manage your property. Rental properties are being offered for lease day in day out – how can you differentiate your property from others on the market and save money by running an inexpensive yet effective advertising campaign? What is your long term strategy with your investment portfolio of rental properties? These questions require good planning and an open minded approach. At this point, you would be better off by slowing down and carefully assessing your options. An expert opinion will go a long way in helping you make a logical and cost effective decision.
For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
The answer is straightforward: Experience, knowledge of cost effective advertising venues, the ability to screen tenants carefully, and tried relationships with appropriate trusted repair technicians. The headaches involved in managing a property are avoided only using time intensive, good tenant relationship management, and by establishing appropriate systems and processes in place to manage your property. Rental properties are being offered for lease day in day out – how can you differentiate your property from others on the market and save money by running an inexpensive yet effective advertising campaign? What is your long term strategy with your investment portfolio of rental properties? These questions require good planning and an open minded approach. At this point, you would be better off by slowing down and carefully assessing your options. An expert opinion will go a long way in helping you make a logical and cost effective decision.
For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Tuesday, March 29, 2011
Southern California housing market is flat in February
The median home price increased 1.9% in February from January to $275,000. That was unchanged from the same month a year earlier, according to DataQuick Information Systems of San Diego.
Sales climbed 2.1% in February, the first hike in 3 months, after being down 0.6% in January and down 6.4% from February 2010. Nevertheless, a total of 14,369 newly built and previously owned houses and condominiums sold in Southern California last month, the lowest for a February since 2008.
Robert Kleinhenz, deputy chief economist with the California Assn. of Realtors, said that there seems to be a lot of pent-up demand. Once the economy improves and people begin to feel more confident about their employment situations, then sales could increase significantly. Aside from their concerns over the direction of the economy, potential buyers face difficulties getting a mortgage.
Earlier we saw house flippers dominate the foreclosure market, these days everyone with cash is jumping into real estate as an investment to try to beat inflation. Cash-heavy investors are likely to continue to constitute a big part of the market in coming months because these buyers can close deals faster than regular buyers, who must wait for their loans to be approved by banks.
Investors scooping up properties at low price points are keeping prices down. The numbers on a rental condo seem to be crunching out at these levels showing a rough 6-7% back-of-napkin return. An average two bedroom condo rents for about $1400-$1500, and can be acquired for between $190,000-$210,000 at this time. Annual property taxes are between 1.1-1.25% of sales price. HOA dues at about $250/month on average. Annual insurance on a condo for rent policy runs about $160/month. Of course, specific numbers are different. Please give me a call if you are thinking of investing and I can answer your questions regarding actual costs based on the specific location of the condo.
For Buying or Selling, You Need a professional that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Sales climbed 2.1% in February, the first hike in 3 months, after being down 0.6% in January and down 6.4% from February 2010. Nevertheless, a total of 14,369 newly built and previously owned houses and condominiums sold in Southern California last month, the lowest for a February since 2008.
Robert Kleinhenz, deputy chief economist with the California Assn. of Realtors, said that there seems to be a lot of pent-up demand. Once the economy improves and people begin to feel more confident about their employment situations, then sales could increase significantly. Aside from their concerns over the direction of the economy, potential buyers face difficulties getting a mortgage.
Earlier we saw house flippers dominate the foreclosure market, these days everyone with cash is jumping into real estate as an investment to try to beat inflation. Cash-heavy investors are likely to continue to constitute a big part of the market in coming months because these buyers can close deals faster than regular buyers, who must wait for their loans to be approved by banks.
Investors scooping up properties at low price points are keeping prices down. The numbers on a rental condo seem to be crunching out at these levels showing a rough 6-7% back-of-napkin return. An average two bedroom condo rents for about $1400-$1500, and can be acquired for between $190,000-$210,000 at this time. Annual property taxes are between 1.1-1.25% of sales price. HOA dues at about $250/month on average. Annual insurance on a condo for rent policy runs about $160/month. Of course, specific numbers are different. Please give me a call if you are thinking of investing and I can answer your questions regarding actual costs based on the specific location of the condo.
For Buying or Selling, You Need a professional that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Thursday, March 10, 2011
Five Signs That Say 'Buy' .
From Coldwell Banker Marketing Dept. original article by M.P. McQueen, WSJ.
Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.
Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.
Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.
Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.
Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.
Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.
Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Tuesday, March 1, 2011
Historically, California Real Estate Has Been a Strong, Long-Term Investment
Historically, California Real Estate Has Been a Strong, Long-Term Investment
Okay, so the word is out:
It’s not a great time for flipping houses. While just two years ago it made great TV and even better headlines as many homeowners realized significant earnings on the sale of their property, the market has certainly changed and people looking to make easy money in real estate may have to look harder, longer and closer at their choices. But for people who view real estate as the foundation for a long-range financial plan, there may be no time like the present to buy.
Just the Facts
While year to year fluctuations are normal, historically real estate has remained one of the best performing and consistent long-term investments. Real estate like all investments is cyclical in nature, markets go up and markets fall, but, if you look at real estate – especially in California – as a long-term investment, you should consider the following:
National Figures
• According to the National Association of Realtors®, median existing U.S. home sale prices have increased on average 6.5% each year from 1972 through 2005 and 88.5% over the last 10 years.
California
• Looking at the last 37 years of real estate in California, we have seen very few times in which real estate values have dropped.
• According to the California Association of Realtors®, since 1970 the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%.
• In 1970 the median cost of a singlefamily home in California was $26,000.
• Today, 37 years later, California homes have seen a 2,165% increase as the median cost of a home is now $588,970.
The Bottom Line
The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while the stars are in alignment for consumers, mortgage rates remain low (certainly by historical standards) and there is a large selection of homes to choose from. There may be no time like the present to buy. I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years, we’ve seen very few opportunities in which buyers can prevail and now truly is the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Okay, so the word is out:
It’s not a great time for flipping houses. While just two years ago it made great TV and even better headlines as many homeowners realized significant earnings on the sale of their property, the market has certainly changed and people looking to make easy money in real estate may have to look harder, longer and closer at their choices. But for people who view real estate as the foundation for a long-range financial plan, there may be no time like the present to buy.
Just the Facts
While year to year fluctuations are normal, historically real estate has remained one of the best performing and consistent long-term investments. Real estate like all investments is cyclical in nature, markets go up and markets fall, but, if you look at real estate – especially in California – as a long-term investment, you should consider the following:
National Figures
• According to the National Association of Realtors®, median existing U.S. home sale prices have increased on average 6.5% each year from 1972 through 2005 and 88.5% over the last 10 years.
California
• Looking at the last 37 years of real estate in California, we have seen very few times in which real estate values have dropped.
• According to the California Association of Realtors®, since 1970 the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%.
• In 1970 the median cost of a singlefamily home in California was $26,000.
• Today, 37 years later, California homes have seen a 2,165% increase as the median cost of a home is now $588,970.
The Bottom Line
The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while the stars are in alignment for consumers, mortgage rates remain low (certainly by historical standards) and there is a large selection of homes to choose from. There may be no time like the present to buy. I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years, we’ve seen very few opportunities in which buyers can prevail and now truly is the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Thursday, February 17, 2011
How And Why To Prepay Your Mortgage
There is always ongoing discussion on whether or not it makes sense to completely payoff your home and own it free and clear. Peter Miller in the Realty Times did a survey on this matter a few years ago.
One of the best ways to have more cash, retire early, and enjoy a debt-free living is to prepay your mortgage, an option which even lenders increasingly applaud. But for financial reasons and as a matter of personal preference, many people favor a home with less debt. Why wait 30 years to be mortgage free, they reason, when the same goal can be accomplished years earlier without refinancing or new closing costs.
Understanding Prepayment Penalties:
If prepaying a loan seems attractive, the first question to ask is whether prepayments are permitted without penalty. Some loans punish borrowers for the crime of debt reduction by insisting on a penalty if some or all of the loan is paid in advance.
The good news about prepayment penalties is that they seem less frequent and less harsh than in the past. In some cases today, penalties expire after several years. With other loans, prepayment only kick-in after a certain point say when there has been an annual loan reduction of more than 20 percent.
In some cases there are loans which lack penalties but have specialized prepayment rules. For instance, under the FHA program if a prepayment is made after the monthly payment due date it will not be credited to the account until the next month. In essence, the borrower could lose the benefit of a prepayment for as much as several weeks.
In practice what you’re likely to find now is that lenders want your money as soon as possible. Extra money from penalties are of less priority to lender portfolios which become more secure when borrowers owe less.
Paying off the Debt:
You don’t have to prepay much to significantly reduce loan payoff times. For example, suppose you have a @200,000 mortgage at 8 percent interest, pay $1467.53 for principal and interest and the loan will be repaid in 30 years, pay an additional $100 a month and the debt will be retired six months earlier. Pay $200 a month extra and you can be out in a little more than 20 years.
At this point someone will wonder whether $100 might be better spent in the stock market. There’s no sure answer here because we don’t know how stocks or commodities will be valued in the future. What we do know is that by reducing the mortgage we are effectively cutting debt that must ultimately be repaid.
Does prepaying a home mortgage always make the most financial sense?
Because the interest cost for credit cards is typically higher than home loans, and because credit card interest is not tax deductible, if one must choose either one or the other, then reducing credit card debt is likely a better plan than accelerated mortgage payoffs- as long as credit card balances fall over time.
Of course, there’s no rule which says homeowners can’t prepay loans, pay down other debts and shift a few dollars into the stock market.
What about taxes? If a home mortgage is prepaid, interest deductions decline but this is hardly a problem. Which would you rather pay; $1 in interest or perhaps 31 cents in taxes? In both cases money leaves your pocket. The catch is that in one case more money leaves.
Another loan reduction concept is to make bi-weekly payments. Twenty-six bi-weekly payments are equivalent of 13 monthly payments. Since there are only 12 months in a year, bi-weekly payments are simply a way to pay lenders more and thus shorten loan terms. Some lenders will set up bi-weekly payment plans for you, typically in exchange for the rights to collect automatically from a checking account.
Prepayment rules for individual loans and specific lenders vary. For details, contact your lender, ask how your loan can be prepaid, and get answers in writing. Some lenders have monthly forms which automatically allow for prepayments while others have more exotic and complex prepayment programs. Whatever the lender’s preferences, always track your loan with care to assure that all extra payments are carefully credited to principal reductions.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
One of the best ways to have more cash, retire early, and enjoy a debt-free living is to prepay your mortgage, an option which even lenders increasingly applaud. But for financial reasons and as a matter of personal preference, many people favor a home with less debt. Why wait 30 years to be mortgage free, they reason, when the same goal can be accomplished years earlier without refinancing or new closing costs.
Understanding Prepayment Penalties:
If prepaying a loan seems attractive, the first question to ask is whether prepayments are permitted without penalty. Some loans punish borrowers for the crime of debt reduction by insisting on a penalty if some or all of the loan is paid in advance.
The good news about prepayment penalties is that they seem less frequent and less harsh than in the past. In some cases today, penalties expire after several years. With other loans, prepayment only kick-in after a certain point say when there has been an annual loan reduction of more than 20 percent.
In some cases there are loans which lack penalties but have specialized prepayment rules. For instance, under the FHA program if a prepayment is made after the monthly payment due date it will not be credited to the account until the next month. In essence, the borrower could lose the benefit of a prepayment for as much as several weeks.
In practice what you’re likely to find now is that lenders want your money as soon as possible. Extra money from penalties are of less priority to lender portfolios which become more secure when borrowers owe less.
Paying off the Debt:
You don’t have to prepay much to significantly reduce loan payoff times. For example, suppose you have a @200,000 mortgage at 8 percent interest, pay $1467.53 for principal and interest and the loan will be repaid in 30 years, pay an additional $100 a month and the debt will be retired six months earlier. Pay $200 a month extra and you can be out in a little more than 20 years.
At this point someone will wonder whether $100 might be better spent in the stock market. There’s no sure answer here because we don’t know how stocks or commodities will be valued in the future. What we do know is that by reducing the mortgage we are effectively cutting debt that must ultimately be repaid.
Does prepaying a home mortgage always make the most financial sense?
Because the interest cost for credit cards is typically higher than home loans, and because credit card interest is not tax deductible, if one must choose either one or the other, then reducing credit card debt is likely a better plan than accelerated mortgage payoffs- as long as credit card balances fall over time.
Of course, there’s no rule which says homeowners can’t prepay loans, pay down other debts and shift a few dollars into the stock market.
What about taxes? If a home mortgage is prepaid, interest deductions decline but this is hardly a problem. Which would you rather pay; $1 in interest or perhaps 31 cents in taxes? In both cases money leaves your pocket. The catch is that in one case more money leaves.
Another loan reduction concept is to make bi-weekly payments. Twenty-six bi-weekly payments are equivalent of 13 monthly payments. Since there are only 12 months in a year, bi-weekly payments are simply a way to pay lenders more and thus shorten loan terms. Some lenders will set up bi-weekly payment plans for you, typically in exchange for the rights to collect automatically from a checking account.
Prepayment rules for individual loans and specific lenders vary. For details, contact your lender, ask how your loan can be prepaid, and get answers in writing. Some lenders have monthly forms which automatically allow for prepayments while others have more exotic and complex prepayment programs. Whatever the lender’s preferences, always track your loan with care to assure that all extra payments are carefully credited to principal reductions.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Monday, January 31, 2011
What's Driving Buyers To Buy Homes?
In an article by Phoebe Chongchua, The Wall Street Journal is reporting that “affordability” is the top reason for home buying in 2010.
The driving force for buyers has been getting a bargain but low home prices and low interest rates also comes into
WSJ is claiming that buying a home because they didn’t want to rent, was not the driving force. In the San Diego market among the clients we are seeing (Senior/Staff Engineers, Managers, etc) that there are plenty that are seizing low prices to buy and "pride of ownership" is the kicker.
Another influencer was the desire for more living space. According to the Wall Street Journal the survey reported that 28% of the respondents said, “they bought a house because they wanted more living space or a larger property”. However, 11% of those surveyed said that “potential financial growth” motivated them to purchase a home. In San Diego, this continues to hold true. Many of the moves are triggered because kids have grown up and need more room for play.
Real estate experts believe that buyers are still motivated by the potential financial growth, but indeed a good value in the form of low interest rate and discounted home prices is the driving force these days. So, if you are listing your home for sale, focus on value. Detailed marketing materials that showcase your home’s amenities, walking-distance retail outlets, and neighborhood parks and schools will also help create value.
Don’t underestimate the importance of valuable upgrades such as new appliances, water heater, solar panels, green technology, smart wiring for commonly used technology, and, of course, any energy-saving lighting and/or heating/air conditioning systems that you might have installed.
Light up your house as much as possible when showing or holding an open house. Even if you typically keep the shades drawn, open them up, turn on light fixtures and, if you have skylights, make sure they’re clean.
Value increases for buyers the more they can see themselves living in your home. So, make it cozy, comfortable, and attractive. In the bathrooms, hang color-coordinated towels; some fresh flowers in a vase. And if the walls are scuffed, try using a Magic Eraser. If that doesn't work, touch up the paint or paint the entire bathroom.
In the dining room or the kitchen, set the table. But don’t overdress the table. Too much stuff on a table makes it look crowded, small, and can be a turn-off.
Remember, selling your home is about creating value for buyers. That means how you live in your home may not be the way you show your home. You may have to put away a lot of the clutter such as trinkets, family photos, pet toys, electrical cords, kids’ toys, and anything else that is personal to you. By doing this you’ll create a greater chance of buyers viewing your home as theirs. And that's value.
Additional information: http://www.rashidrealty.com/pages/prepare_your_home_for_sale.pdf
Additional information: http://realtytimes.com/rtpages/20110121_homes.htm.
For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
The driving force for buyers has been getting a bargain but low home prices and low interest rates also comes into
WSJ is claiming that buying a home because they didn’t want to rent, was not the driving force. In the San Diego market among the clients we are seeing (Senior/Staff Engineers, Managers, etc) that there are plenty that are seizing low prices to buy and "pride of ownership" is the kicker.
Another influencer was the desire for more living space. According to the Wall Street Journal the survey reported that 28% of the respondents said, “they bought a house because they wanted more living space or a larger property”. However, 11% of those surveyed said that “potential financial growth” motivated them to purchase a home. In San Diego, this continues to hold true. Many of the moves are triggered because kids have grown up and need more room for play.
Real estate experts believe that buyers are still motivated by the potential financial growth, but indeed a good value in the form of low interest rate and discounted home prices is the driving force these days. So, if you are listing your home for sale, focus on value. Detailed marketing materials that showcase your home’s amenities, walking-distance retail outlets, and neighborhood parks and schools will also help create value.
Don’t underestimate the importance of valuable upgrades such as new appliances, water heater, solar panels, green technology, smart wiring for commonly used technology, and, of course, any energy-saving lighting and/or heating/air conditioning systems that you might have installed.
Light up your house as much as possible when showing or holding an open house. Even if you typically keep the shades drawn, open them up, turn on light fixtures and, if you have skylights, make sure they’re clean.
Value increases for buyers the more they can see themselves living in your home. So, make it cozy, comfortable, and attractive. In the bathrooms, hang color-coordinated towels; some fresh flowers in a vase. And if the walls are scuffed, try using a Magic Eraser. If that doesn't work, touch up the paint or paint the entire bathroom.
In the dining room or the kitchen, set the table. But don’t overdress the table. Too much stuff on a table makes it look crowded, small, and can be a turn-off.
Remember, selling your home is about creating value for buyers. That means how you live in your home may not be the way you show your home. You may have to put away a lot of the clutter such as trinkets, family photos, pet toys, electrical cords, kids’ toys, and anything else that is personal to you. By doing this you’ll create a greater chance of buyers viewing your home as theirs. And that's value.
Additional information: http://www.rashidrealty.com/pages/prepare_your_home_for_sale.pdf
Additional information: http://realtytimes.com/rtpages/20110121_homes.htm.
For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
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