The link below sheds some light on the appreciation in the local market.
Housing upturn occurring in some parts of Southern California, data show -- latimes.com
Showing posts with label Orange County. Show all posts
Showing posts with label Orange County. Show all posts
Wednesday, October 14, 2009
Monday, August 10, 2009
WHY WE NEED MORE INVESTORS IN THE MARKET & WHY FLIPPING IS GOOD
We need to have more investors in the market and we need them flipping properties. There, I said it. I know it won't be long until the riotous crowds start descending on me. But before they do, let me explain. Investors aren't the scourge of the earth. Well, at least not most of them. They are looking to buy an under-valued asset. No different than a stock or a bond fund. And here's why investors are helpful in this market:
1. There are hundreds of thousands of REO and short sale properties on the market. Values will not be going up until demand at least equals supply. In the ever tightening lending markets, investors fill a void by paying cash. It's very true that they may take a potential buyer out of a transaction, but that buyer should be putting offers in on multiple homes, thereby taking two properties off the market.
2. Investors buy up a lot of the very distressed (read: completely trashed) properties. These are units that, due to health and safety issues, can not be financed anyway. Investors buy these up cheap, and fix the inherent problems. At this point,the unit is now gone from total disrepair to some form of turn key for a buyer. That subsequent buyer will get into a home and not have to spend thousands doing repair work they would other wise need to. And I'm pretty sure the neighbor living next door doesn't mind a lawn that actually has grass and windows not made of plywood.
3. Investors buy/sell or buy/rent repeatedly. One by one, that gets more properties out of the hands of the REO listing agents and non-responsive banks we've all grown so fond of dealing with.
When you put all of that together,investors help stabilize the market. Since I see the agitated crowd starting to mill outside now, I will make one more point before the horse mounted,riot police descend. In an effort to quell investor purchases/flips ,FHA, Fannie Mae & Freddie Mac(the latter two having made repeated, brilliant decisions to the point of government receivership) have mandated that no property can get a loan on it if title has changed within the previous 90 days. In fact, an offer can not even be written prior to the 90th day. Hmmmmmm. That law might have worked really well 3-6 years ago, BEFORE the appreciation horse left the barn.THAT'S the time investors needed to be reigned in. THAT was the time when demand far outstripped supply. THAT'S when everyone was on Easy Street. It would have made great sense to calm the market by making "flippers" hold their investments for 90 days. But in the market today, it makes no sense. If your house is worth less that it was 3 years ago, raise your hand. 1...2...1,453,312. I count fast. The point is, why take away a tool that can actually help stabilizeand start to appreciate an asset that you are either living in, or hope to buy? I think it's time to conclude this post. It's some what unnerving to see yourself burned in effigy.
1. There are hundreds of thousands of REO and short sale properties on the market. Values will not be going up until demand at least equals supply. In the ever tightening lending markets, investors fill a void by paying cash. It's very true that they may take a potential buyer out of a transaction, but that buyer should be putting offers in on multiple homes, thereby taking two properties off the market.
2. Investors buy up a lot of the very distressed (read: completely trashed) properties. These are units that, due to health and safety issues, can not be financed anyway. Investors buy these up cheap, and fix the inherent problems. At this point,the unit is now gone from total disrepair to some form of turn key for a buyer. That subsequent buyer will get into a home and not have to spend thousands doing repair work they would other wise need to. And I'm pretty sure the neighbor living next door doesn't mind a lawn that actually has grass and windows not made of plywood.
3. Investors buy/sell or buy/rent repeatedly. One by one, that gets more properties out of the hands of the REO listing agents and non-responsive banks we've all grown so fond of dealing with.
When you put all of that together,investors help stabilize the market. Since I see the agitated crowd starting to mill outside now, I will make one more point before the horse mounted,riot police descend. In an effort to quell investor purchases/flips ,FHA, Fannie Mae & Freddie Mac(the latter two having made repeated, brilliant decisions to the point of government receivership) have mandated that no property can get a loan on it if title has changed within the previous 90 days. In fact, an offer can not even be written prior to the 90th day. Hmmmmmm. That law might have worked really well 3-6 years ago, BEFORE the appreciation horse left the barn.THAT'S the time investors needed to be reigned in. THAT was the time when demand far outstripped supply. THAT'S when everyone was on Easy Street. It would have made great sense to calm the market by making "flippers" hold their investments for 90 days. But in the market today, it makes no sense. If your house is worth less that it was 3 years ago, raise your hand. 1...2...1,453,312. I count fast. The point is, why take away a tool that can actually help stabilizeand start to appreciate an asset that you are either living in, or hope to buy? I think it's time to conclude this post. It's some what unnerving to see yourself burned in effigy.
Monday, May 18, 2009
A TAX NOTICE I WAS GLAD TO GET
So I go out to my mailbox a couple of weeks ago, and pull out my Sports Illustrated, Realtor Magazine and a bunch of advertising I had no need for. But then I came across this:
Not a particularly attractive post card. And quite frankly, getting anything with a county,IRS,or Franchise Tax logo on it is not necessarily good news. BUT...as I scanned to the bottom, I was over joyed at the sight of my home's value being upside down. The reason being, the County of San Bernardino is the one entity that I want to think my home has de-valued. Not only that, but this was accomplished in the recent election under Prop. 8 .
Smelling a reduction in my property tax (which may be the only smell I enjoy more than orange blossoms), I decided to investigate. Lo and behold, it worked! I lowered my mortgagepayment by $185.69/month. And I didn't even have to pay for the postage.It can for you too. If you live in San Bernardino County,and got the same post card....
Here's how:
1. Get a copy of your tax bill Click Here..Just follow the instructions and it will take you a link that says "Parcel
Number". Now click on that. Then click the link that says "View PDF".
2. When you see your tax bill (you'll know because the next thing you will see is Dick Larsen's name in large font)
look just below his name, and see the number under "Total Tax Rate" . Mine is .010594, or 1.0594%
3. Here's the only math you have to do. Use my tax bill as an example. My "Maximum Assessment" is
currently $575,341. Multiplying that by the Total Tax Rate gives you my existing yearly
taxes of $6095.16 ( $575,341 x 1.0594%= $6,095.16)....Now do the same for the "Fair Market Value as
of 1/1/2009" . That figure is $365,000 ($365,000 x 1.0594%=$3,866.81)
4. Subtract those two figures, and you'll get the yearly tax savings ($6,095.16-$3,866.81= $2,228.35) Since
my taxes are built into my payment, I divide $2,228.35 /12= $185.69.That is how much my mortgage
payment dropped. If it wouldn't have made for an uncomfortable moment, I might have actually kissed my mail
man. If the math is confusing, just drop me an email, or call and I'd be happy to walk you through it.
And just like Billy Mays.....WAIT...THERE'S MORE!!!
If your mail man wasn't nice enough to give you one of those postcards, and you think your property is worth less than when you bough it, you can petition the County of San Bernardino to lower your taxes. Click Here.. and be taken to the application page for The County.You may still get a reduction.
WAIT...THERE'S STILL MORE!!!
If you don't happen to live in San Bernardino County, here are some links you may be able to use:
For Orange County Click Here
For Los Angeles County Click Here
For Riverside County Click Here
If your taxes are built into your payment,and depending on your lender, you may have your payment reduced in the next month. And yes...THERE'S STILL MORE!! You may also have a refund from the overage your lender now has in your escrow account.
Not a particularly attractive post card. And quite frankly, getting anything with a county,IRS,or Franchise Tax logo on it is not necessarily good news. BUT...as I scanned to the bottom, I was over joyed at the sight of my home's value being upside down. The reason being, the County of San Bernardino is the one entity that I want to think my home has de-valued. Not only that, but this was accomplished in the recent election under Prop. 8 .
Smelling a reduction in my property tax (which may be the only smell I enjoy more than orange blossoms), I decided to investigate. Lo and behold, it worked! I lowered my mortgagepayment by $185.69/month. And I didn't even have to pay for the postage.It can for you too. If you live in San Bernardino County,and got the same post card....
Here's how:
1. Get a copy of your tax bill Click Here..Just follow the instructions and it will take you a link that says "Parcel
Number". Now click on that. Then click the link that says "View PDF".
2. When you see your tax bill (you'll know because the next thing you will see is Dick Larsen's name in large font)
look just below his name, and see the number under "Total Tax Rate" . Mine is .010594, or 1.0594%
3. Here's the only math you have to do. Use my tax bill as an example. My "Maximum Assessment" is
currently $575,341. Multiplying that by the Total Tax Rate gives you my existing yearly
taxes of $6095.16 ( $575,341 x 1.0594%= $6,095.16)....Now do the same for the "Fair Market Value as
of 1/1/2009" . That figure is $365,000 ($365,000 x 1.0594%=$3,866.81)
4. Subtract those two figures, and you'll get the yearly tax savings ($6,095.16-$3,866.81= $2,228.35) Since
my taxes are built into my payment, I divide $2,228.35 /12= $185.69.That is how much my mortgage
payment dropped. If it wouldn't have made for an uncomfortable moment, I might have actually kissed my mail
man. If the math is confusing, just drop me an email, or call and I'd be happy to walk you through it.
And just like Billy Mays.....WAIT...THERE'S MORE!!!
If your mail man wasn't nice enough to give you one of those postcards, and you think your property is worth less than when you bough it, you can petition the County of San Bernardino to lower your taxes. Click Here.. and be taken to the application page for The County.You may still get a reduction.
WAIT...THERE'S STILL MORE!!!
If you don't happen to live in San Bernardino County, here are some links you may be able to use:
For Orange County Click Here
For Los Angeles County Click Here
For Riverside County Click Here
If your taxes are built into your payment,and depending on your lender, you may have your payment reduced in the next month. And yes...THERE'S STILL MORE!! You may also have a refund from the overage your lender now has in your escrow account.
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