Buying Homes in Santa Cruzstraight talk about the local market…..

Should I buy this year? by MrAlanKendall

This guys gives some plain reasons why, if you think in the long-term, real estate is great investment.  Enjoy.

JP Morgan Chase to pay a $156 Million fine.

http://www.npr.org/2011/06/21/137327475/jpmorgan-to-pay-153-6m-to-settle-fraud-charges?ft=1&f=1001

A couple of pros share their view on buying low and renting high.

http://www.kiplinger.com/magazine/archives/how-to-be-a-landlord.html

Great article for those of us who don’t have the experience of owning dozens of rental properties.  The main idea here is that if a property is not “cash flow positive by $300/mo”,  think twice.

This one will make your blood boil…..

\”One West got a deal from the FDIC\”

In the climate “pre-recession and financial meltdown”, tracking the median price of monthly closes was  good way to analyze what the local market was doing.  Those days are gone for now.

Newspapers like to still use that “median price” for headlines.  It is nice, easy-to-obtain statistic to get from the local Realtor Association.   However, in the current climate is not a very useful statistic.  Short sales and foreclosures have, for various reasons, made this statistic skewed.    The stat actually now reflects more on how much business the big 3 national banks want to process distressed properties than it does the actual value of the property in an “organic sale”.  See article…..

http://www.santacruzsentinel.com/business/ci_16832405?source=rss&goback=.gde_2390505_news_288930588

One of the words I have come to hate the most in the world of real estate is “top producer”.  Top Producers care about getting deals done — not if the client’s needs were met, the transaction was ethically managed, the process was as skillfully supervised, and the negociations done correctly.

But he/she got the deal done and moved on….

For a profession that makes their commission based on the service, advice, and support provided during a home-buying process, why would the focus be on the number of transactons you have produced versus the quality of your work.  How about realtors saying “number of transactions that have never ended up in letigation” or number of clients who “use them again”. etc.

Taxes/Mortgage Interest Deduction: What many First Tim Buyers (FTB) often over look is the implication of the mortgage interest deduction.   Interest paid on your primary house is deductible.  So, depending on your income and personal finance situation, this might be a very good reason to buy.  To see how much less you would pay in taxes than you would renting.

Lets say you have$500,000 loan.  Your montly payment would be roughly $3000.  Of this $3000, interest and taxes  paid would probably be$2400 or so.  That means over the year would be close to $30,000.  Take $30,000 multiplied by your “effective tax rate”, and this will give you the amount of money you would have paid to Uncle Sam anyway.  This may make “renting” not feel as cheap as it did before you took into account the advantage of owning….not to mention the equity you are accumulating.

Lending– My personal belief is that everyone should use a mortgage broker.  The lending climate has gotten so precarious, having someone with a relationship to quality lenders is important.  Many banks have customer service reps, but even though they may be polite and knowledgeable, they are tied to whatever the upper/national management dictates that month.   Having a broker who can shop all the banks and has probably a good working relationship with a few banks will save you time and money…trust me.

Schools

Record low interest rates, a glut of distressed houses that have stablized…..makes house buying a no brainer.

“Buying a fairly priced home at today’s rates may be the best deal you will ever get. And who knows? It may even turn out to be a good investment.” –Money Magazine, By Ali Velshi, CNN chief business correspondent. December 13, 2010

http://money.cnn.com/2010/12/10/pf/buy_a_home_now.moneymag/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+rss/money_realestate+(Real+Estate)

There are many articles out there like this….cautiously optomistic, that the worst is over…….

http://money.cnn.com/2010/12/16/real_estate/November_housing_starts/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+rss/money_realestate+(Real+Estate)