Carlsbad Real Estate

Renting vs buying in todays market

May 11, 2012

A question I get asked quite often is “Should we continue to rent or is it beneficial to buy right now?” Well, it depends on the numbers! Back when interest rates and home prices were still sky high, renting is a great temporary solution for persons who want a place of their own. However, things have changed significantly since so let’s analyze the numbers:

As an example, in Santa Ana, a 3 bed 2 bath 1500 SF SFR will rent for about $2,000/mo or more. The same 3 bed 2 bath 1500 SF SFR can be had for $275,000 to $325,000. Let’s see what the numbers look like as far as out of pocket costs and monthly payments:

Rental ($2000/mo)
Deposit (out of pocket)

$4,000.00
Monthly Lease Payment

$2,000.00
Purchase ($325,000)
Down Payment (out of pocket)

$11,375.00
Principle & Interest Payments @ 3.875%

$1,500.59
Estimated Tax and Insurance

325.00
Estimated Mortgage Insurance

332.41
Estimated Monthly Housing Expense

$2,158.00

Most people at this point may realize that for just a little more every month, they can experience the freedom and joy of homeownership. However, there will still be some that may say “well that’s still $158 more than renting!” Yes! That’s true but we’re forgetting that the homeowner may now qualify for an annual income deduction of around $11,000 on their tax returns for the interest paid on their mortgage, one of the many benefits of owning a home. That’s about $2,400 a year or $200 a month in savings for most folks. Mind you that we are Realtors and not CPA’s by any means, so you will need to advise your prospective buyers to consult with a CPA regarding tax related questions. However, the benefit of owning vs. buying is quite clear given the unique circumstances today where both prices and interest rates are incredibly low. Some of our thirty year products today are as low as 3.375%!

Renters need a decent credit to lease a place. If their credit is good enough for leasing, chances are, it’s probably good enough for a purchase. Can you name a few renters within your sphere of influence who may need your help?

I will be glad to answer any questions or comments you may have. Please feel free to shoot me an email at Tri@MyLoanPeople.com. Stay tuned for my cash-flow analysis of investment opportunities today!

Tri Doan

MyLoanPeople

: Carlsbad Real Estate
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What In the World Is HAFA?

March 14, 2012

What’s happening in the San Diego housing market? What’s being done about it? Learn about the government’s new HAFA program, providing foreclosure avoidance options including short sales and deeds-in-lieu of foreclosure.

: Carlsbad Real Estate
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Short sales increasing nationwide

March 6, 2012

With 9,145 completed short sales, the Los Angeles area had more short sale transactions than any other metropolitan statistical area (MSA) in the second quarter of this year, according to a recent blog post from RealtyTrac.

These short sales came with an average discount of 32 percent and at an average price of $350,237.

Phoenix ranked second in number of short sales for the second quarter with 8,434 short sales, which came with an average discount of 27 percent and an average price of $133,793.

According to the RealtyTrac blog post, the metros with the highest numbers of short sales in the second quarter were:

1. Los Angeles

2. Phoenix

3. Cape Coral – Fort Myers, Florida

4. Oxnard – Thousand Oaks – Ventura, California

5. Reno – Sparks, Nevada

6. San Francisco

7. San Jose

8. Portland

9. Atlanta

10. Milwaukee

: Carlsbad Real Estate, Oceanside Real Estate, Real Estate News, San Diego Real Estate, Short Sale, Statistics, The Economy
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What is a Short Sale?

February 27, 2012

If you are struggling to make your mortgage payments and feel a short sale may be the best option for you but have questions about the process, here is a quick video describing a short sale. A real estate transaction where the bank will accept less than what is owed to them when a home is sold is considered to be “selling short”, or in other words a short sale. Agents who hold the Certified Distressed Property Expert (CDPE) designation, such as myself, are trained to help homeowners navigate alternatives to foreclosure, and can provide answers to the many questions surrounding America’s foreclosure crisis.

: Carlsbad Real Estate

Behind The Housing Starts Headlines, The Story That Matters

January 20, 2012

Housing Starts 2010-2011

When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.

Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.

The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.

In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :

Now, although these headlines are factually true, they’re also are a little bit misleading.

Housing Starts did fall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in California or anywhere else nationwide.

Few buyers purchase 2-4 unit homes, and almost nobody purchases an entire apartment building. Rather, it’s the Housing Starts reports’ “single-family” tally that matters because that’s the home type that the majority of home buyers purchase.

In December, for the fourth straight month, Single-Family Housing Starts increased.

Single-family housing starts climbed 4 percent last month to 470,000 units on a seasonally-adjusted, annualized basis. This is the highest number of Single-Family Housing Starts since April 2010 — the last month of last year’s home buyer tax credit.

The Single-Family Housing Starts data is the latest in a series of data that point to a housing rebound nationwide. New Home Sales, Existing Home Sales, Pending Home Sales and Homebuilder Confidence has each posted multi-month highs and all are poised for strong gains into 2012.

If you’re planning to buy a home in 2012, consider buying in between now and March rather than at some point later. San Diego home prices — and mortgage rates- are likely to move higher.

: Carlsbad Real Estate, Housing Analysis, Oceanside Real Estate
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Foreclosure Filings Fall To 49-Month Low

January 18, 2012

Annual Foreclosure Change, Top 10 States, December 2011

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

The drop does not appear to be seasonal, either.

Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011′s annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.

In fact, among the country’s top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.

Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month’s total foreclosure filings.

  • California : 25.8 percent of all foreclosure filings
  • Florida : 12.0 percent of all foreclosure filings
  • Michigan : 6.4 percent of all foreclosure filings
  • Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a Oceanside home buyer — first-timer or investor — foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at “deep discounts“ as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it’s different from buying a home from a “person”. Purchase contract negotiations are different and months may pass before your closing is approved.

If you’re buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

: Carlsbad Real Estate, Housing Analysis, Oceanside Real Estate
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Congress reinstates FHA loan limit

January 8, 2012

The U.S. Congress passed a “minibus” appropriations measure that will continue to fund the government and includes a provision to reinstate the FHA loan limit in high-cost areas for two years.  President Obama signed the measure into law Friday.

The higher Fannie Mae, Freddie Mac, and FHA conforming loan limits of $729,750 expired Oct. 1, when it was reduced to $625,500.  The passage of H.R. 2112 provides for an extension of FHA-insured mortgages at the higher level through December 2013.  It also provides for a short-term extension of the National Flood Insurance Program (NFIP) through Dec. 16, 2011.  C.A.R. and NAR strongly urge Congress to work on a five-year NFIP reauthorization bill to provide certainty and avoid further disruption to real estate markets.

“C.A.R. is pleased the Senate and House were able to come to a reasonable compromise on extending the FHA loan limit to ensure affordable home financing for middle-class buyers,” said 2012 C.A.R. President LeFrancis Arnold.  “However, we are disappointed that the Senate and House could not agree on increasing the loan limits for Fannie Mae and Freddie Mac, especially since the Senate bill included a premium on high-cost loans that protected U.S. taxpayers from footing the costs.”

C.A.R. and the NAR have long advocated making permanent higher loan limits. The San Diego conforming loan limit is currently at $546,250. If you are looking to get pre-qualified for a San Diego home loan, contact me for a reputable lender referral or visit my preferred lender through our Summit Realty Group portal HERE.

: Carlsbad Real Estate
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Fannie Mae offers new REO platform with HomePath

January 8, 2012

Beginning Dec. 7, Fannie Mae will launch the HomePath Online Offers Program to collect offers and manage the offer-submission process on properties listed on HomePath.com. Agents and brokers representing buyers are now required to submit offers exclusively on HomePath.com. All properties listed in California and Florida are eligible on the designated launch date.

The HomePath Online Offers Program is designed to ease and create transparency during the offer submission process with the following features:

-An easy to use, self-service offer submission system that can be assessed through HomePath.com
-A transparent offer process that keeps Selling Agents informed of the status of their clients’ offers on HomePath properties listed on HomePath.com
-Improved communication between the Selling Agent and the Listing Agent regarding offers on HomePath properties listed on HomePath.com

The HomePath program offers unique financing options for first time buyers and investors. If you are looking for San Diego first time buyer programs or are having a difficult time getting you offer accepted due to your financing, contact Travis Breton today and ask about the HomePath program. With as little as 3% down you can be in your new San Diego home in as little as 30 days! Hard to finance San Diego condos are also financeable with as little as 3% down through the HomePath program.

: Carlsbad Real Estate, Home Buying Tips, Oceanside Real Estate, San Diego Real Estate
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Up to 30K in Incentives at The Tides in Carlsbad

January 7, 2012

Luxurious style meets the splendor of ocean-close living at The Tides homes for sale in Carlsbad CA. Awake to the fresh ocean breeze of coastal living at these new homes for sale in Carlsbad built by K. Hovnanian Homes.

• A quaint enclave of 27 Single Family Residences
• Just minutes from one of the most charming town center locations of coastal Carlsbad
• One of the best coastal climates in Southern California
• Less than 5 miles away from Carlsbad outlet center with over 50,000 feet of retail shop and restaurants
• Centrally location approximately 35 miles South on the I-5 to Down Town San Diego

The classic Santa Barbara-style architecture offered by these Carlsbad luxury homes is accentuated by dramatic entry courtyards, welcoming front porches and balconies and detailing such as rounded archways, porticos and Porte Cocheres. The Tides at Carlsbad offers 4 distinctive floorplans ranging from approximately 2419 to 2978 sf.

Quick move in homes at The Tides Carlsbad are currently available. Contact me today for information about this new homes community or about buying Carlsbad real estate.

: Carlsbad Real Estate, New Home Communities
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Two quick move in homes available in The Tides at Carlsbad

November 23, 2011

The Tides at Carlsbad is now open and selling homes daily. A intimate community featuring just 27 single family homesites, The Tides Carlsbad is in a prime location just about a half mile from South Carlsbad Beach. These new homes for sale in Carlsbad CA feature a classic Santa Barbara-style architecture and four distinctive floorplans ranging from approximately 2,419 to 2,978 sf. Each of The Tides home models are accentuated by dramatic entry courtyards, welcoming front porches and balconies and detailing such as rounded archways, porticos and Porte Cocheres.

The Tides new homes in Carlsbad currently has two quick move in homes available. Just in time for the holidays! Contact me today for a tour of The Tides Carlsbad or for more information about buying Carlsbad real estate.

: Carlsbad Real Estate, New Home Communities
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