It Still Makes Sense to Buy a Home in Mission Viejo Versus Renting

Writen by Vincent Bindi

If you are renting and can afford to buy, but have decided to put off buying a home due to all of the chatter about a housing bubble… you may be sorry. Is there a ‘real estate bubble’? The simple answer is ‘No’. Even if interest rates due move up a little bit higher, it won’t be enough to cause a slide in Real Estate prices here in Mission Viejo. The key to a healthy real estate market is the jobs market… and in south Orange County, has some of the lowest un employment in the Nation, with a good forecast for job growth for years to come.

Even though the payment on a home may be slightly higher due to increased interest rates, it generally won’t stop someone from buying the home of their dreams… but if they feel their job is in jeopardy, it usually will stop most people in their tracks from purchasing a home.

A major mortgage industry group recently release it’s three year economic forecast, projecting robust economic growth for the Nation and projecting a small rise in long term home mortgage rates to about 6.5% by the year 2007. Again, making the likelihood of a real estate bubble bursting unlikely in Orange County.

Price declines are unlikely, but we do expect a slowing in real estate appreciation in the years to come to a level of 3% to 6% per year, which is still good. Unfortunately, the talk of a real estate bubble, has been going on for some years and has victimized many renters who could afford to buy. Is it too late? No it’s not, but here is an example of what can happen if one continues to procrastinate on buying a home.

For example, if one is paying rent in Mission Viejo of $2,000 per month, and the landlord increases the rent by 5% each year, one would wind up paying over $130,000 over five years with nothing to show for it! Also, if one does any type of maintenance to the home (paint, leaky faucet), and then moves out, those improvements belong to the landlord.

With the extensive variety of loan programs to help buyers purchase with No or very low down payment, the very same money could have been used towards home ownership. Using an adjustable rate loan, a mortgage of $375,000 could be obtained with a total monthly mortgage payment including property taxes and insurance of around $2,400 per month. Assuming a 25% tax bracket, one would save about $300 to $400 per month, so the effective net payment would be close to the above rent payment example. After 5 years one would also have paid down some of the principal by about $12,000 which is now added to ones net worth.

Home appreciation can add even a bigger chunk of equity. If the Mission Viejo home appreciates by a modest 5% per year for the next 5 years, the $375,000 Condo would be worth $455,000 in the year 2010. Now ones net worth could be a whopping $95,000 which by the way, is tax free.

Don’t be victimized by the real estate bubble hype. Buying a home in Mission Viejo or elsewhere in south Orange County is a big step for most people, and a step in the right direction.

Mr. Bindi is a licensed Real Estate Broker in Orange County CA. He’s sold over 700 homes, and has Bachelors and Masters degrees. For more information about Mission Viejo Home Buying Tips, visit: http://www.Search OCHomes.com

What To Expect When Renting Your First Apartment

Writen by Lee Dobbins

Every young person looks forward to the day they can finally move out on their own and get their very first apartment. While this is a fun task and something to look forward to, there are many things to carefully consider before taking this big step.

The first step is to find out what kinds of apartments are available in your price range. You have several options here. First you can look in the local papers, rental guidebooks and yellow pages for available apartments and apartment complexes.

You can also look on the internet. Many places have web sites where you can take a virtual tour of the facilities as well as see floor plans and pricing. This is a great way to compare different apartments without having to drive all over town.

You can also ask people you know if they know of any apartments that have vacancies. This is also a good way to find out what landlords are good to rent from and what apartment buildings are the nicer ones to live in. Finally, you can look on bulletin boards and to let signs on the road. If you have real estate agents that specialize in rentals you might try them as well.

When you finally do find an apartment you are interested in, be prepared to fill out a rental application form. This information on this form will be used to determine if you are a good risk to rent to. They will most likely do a credit check and will verify employment and salary range. You may need to provide your social security number or the copy of your Visa or LPR card. You may have to pay a fee just to fill out the form and it may take a couple of weeks to find out if you are approved. First time renters might need a co signer who will be responsible should you not pay your rent on time.

Once you are approved, expect to sign a lease. This document will state all the terms that apply to the rental as well as the time frame and fixed monthly rent. You should keep a copy of this in your files. The lease can be for any amount of time, but a year is pretty standard. The lease stipulates what recourse the landlord has if you fail to pay your rent and also that your rent can not be raised until the lease ends.

The landlord will want your first months rent in advance along with a security deposit which usually is equal to one months rent. Sometimes, they ask for the first and last months rent in advance in addition to a security deposit so you might want to ask about this up front to be sure you have enough money. Some apartments do allow pets and if you have one you can expect to pay an additional security deposit which will be specifically used to fix any damage caused by the pet. Some places also charge a small monthly premium if you have a pet.

If you leave at the end of the lease with your apartment in tip top shape, your security deposit will be refunded. The landlord may keep some part of the deposit if the property has incurred any kind of damage. You may have to forfeit your security deposit entirely if you break the lease agreement.

Unexpected things happen in life and you might enter into a lease with good intentions but circumstances might cause you to have to break it. Most landlords realize this and will try to work with you to get the apartment rented so you incur as little expense as possible. Be forewarned, however that if you do break the lease and the landlord cannot find a tenant you are responsible to pay the rent up until the end of the lease.

Lee Dobbins writes for Apartment Rental Guide where you can find out more about finding an apartment and negotiating a lease.

Texas Land For Sale – The Profit Potential, the Risks and a Better Alternative

Writen by Sacha Tarkovsky

Texas land for sale is a hot investment market and many investors have been taking advantage of buying land here and making some big profits, but will these continue and will investors continue to make healthy profits?

Here we will look at the prospects for Texas land for sale as an investment and also some problems that could occur in the future, as well as an alternative land for sale investment market that can provide more profit potential with less risk.

Texas land for sale storm clouds

From Austin to San Antonio to Dallas, Texas land for sale is a booming market and many investors are looking at land for sale in Texas as a safe and secure investment that can give them long term capital gains.

Rural real estate prices have risen around 10% and over the last couple of years prices have risen faster than at anytime since 1981.

Of course, land near major cities in prime locations has risen even more, with as much as 50% a year being made.

So what are the problems that could occur? Well the economy for a start.

Check out the price of oil and unleaded gas, which are near record highs.

What’s that got to do with Texas land for sale?

A lot actually!

High fuel prices increase inflation and choke economic growth, when a downturn comes in stocks then so to will real estate and land prices turn down.

The real boom has already taken already taken place and with a slowing economy over the next few years’ land prices could suffer and the gains we have seen may well disappear as they could in all the boom states including Florida and Arizona.

Today, the economy is global and many Americans are looking at opportunities overseas. The fact is many overseas markets offer far bigger land profits than Texas land for sale.

The good news is:

You don’t have to look far from Texas for a booming land for sale market that will continue to boom and it’s a three hour flight south in Costa Rica.

Here land for sale investments have been turning over 100% annual profits with low downside risk! Let’s see why this has happened and will continue in the near future.

Americans have been snapping up real estate as second homes here in record numbers getting more for their money as property costs up to 70% less.

Investing in Costa Rica land will not be affected by a downturn in the economy like Texas land for sale.

Why?

Quite simply because the trend in migration from America will not drop. The baby boomer generation are waking up tot the fact that the state is providing less, medical insurance is soaring and they haven’t saved enough.

To maintain their standard of living their moving to Costa Rica for a cheaper and better standard of living, in a beautiful country that has strong ties with the US and makes immigration easy.

Investors who previously were making money in Texas land for sale, are now casting their eye toward Costa Rica and buying investment lots in ever increasing numbers.

Many are making 100% annual profits, downside risk is low and profit potential in the future is excellent.

If you are considering buying Texas land for sale as an investment, check out Costa Rica its close and offers a risk to reward that is hard to beat anywhere.

For More info

On opportunities in Costa rica and how to invest in land with low risk for long term capital growth visit http://www.costaricalandlots.com

How to Prequalify a Buyer When You Sell Your Home "By Owner"

Writen by Bruce Andrews

One questions many “for sale by owner” sellers ask is “how can I determine if a potential buyer can afford to buy my house?” In the real estate industry this is referred to as “pre qualifying” a buyer.

What’s New With Tempe Loft Projects

Writen by Will Daly

Look for a ton of new hip, cool, edgy and architecturally interesting loft projects to come to Tempe over the next year or more. Two worth mentioning include:

Dorsey Place Condominiums at University and Dorsey is a ninety unit condo project. Although we haven’t seen design renderings yet and we don’t know if it will be architecturally interesting or not I’m including it here for two reasons: 1) it will be relatively close to a Tempe light rail station and just two miles from Downtown Tempe on Mill Avenue, the new Tempe Arts Center, Tempe Town Lake, Tempe Beach Park, and the future Tempe Mall and 2) I believe that they will be priced affordably for university students and first time home buyers. The condos will be housed in a four story building at the back of the property. There are two different floor plans offering a straight two bedroom option and also a two bedroom with a den option. Square footages are 1100 and 1300 square feet respectively. Parking for the residential condos is one assigned spot in the parking structure per condo. The property also has 7,000 square feet of commercial condos available at the front of the property. The residential condo element will be separated from the commercial condo element via a security fence and gate. Expect to see prices approximately June 2006.

Phase Two of Hayden Ferry has broken ground and reservations are being accepted. The project is being built by SunCor Development Company (a subsidiary of Pinnacle West Capital Corp., which is the holding company for Arizona Public Service Company; I mention this because I love doing business with financially strong entities) and in my opinion is one of the best high rise condo projects in Tempe; heck, for that matter it’s one of the best in the entire Phoenix metro area! It sits right on Tempe Town Lake has great views of Tempe Mill Avenue Bridge, is a very short walk from Tempe Beach Park, the new Tempe Arts Center, the new Tempe light rail station on Mill Avenue, and all the great entertainment and restaurants in downtown Tempe. If even half of the projects planned along Tempe Town Lake get built then Hayden Ferry will be THE place to live. If for some reason development at the Lake slows down and the other high rise and loft projects don’t get built, the existing venues are enough to make this a great place to live. With delivery of phase two almost two years away and with condo units ranging from the mid $400 to 700 per square foot, this is a “make sense” project.

Copyright © 2006 Will Daly. All Rights Reserved.

Will Daly, a Realtor with RE/MAX Excalibur in Phoenix and owner of the marketing labels http://WeKnowUrban.com and http://CondosPhx.com combines years of experience, a thorough understanding of current real estate markets, and cutting edge technology to provide his clients the best advice for proven results. He specializes in Loft and High Rise Development/Sales and Condo Conversions. You may reach him directly at (480) 510 8755 or by visiting his blog at http://We Know Urban.blogspot.com.

Using Foreclosure Law to Your Advantage

Writen by B Shelton

Foreclosure law varies from state to state with regards to the exact process that must be followed in order for a bank or lender to foreclose on your home. Knowing the foreclosure law in your state can help you negotiate with your lender and perhaps avoid foreclosure altogether.

One of the largest differences in foreclosure law is whether a state uses mortgages or deeds of trust for real estate. “Deed of trust” is a term that’s not heard as often as mortgage, but in essence, they have the same function they protect the lender from default on a loan that is secured by real estate. The major difference is in the process the lender must use to obtain the right to recover your property and sell it.

When you sign a mortgage agreement with a lending institution, you retain the deed to the property, and have full legal title to it but you allow the lender to place a ‘lien’ on it. If you do not make the payments on the loan as agreed upon, the lender can foreclose on the property.

In some states, a deed of trust takes the place of a mortgage. With a deed of trust, you give the deed to the land or property to the lender, but the lender can only use or sell the property if you default on the loan.

In states that use mortgages, foreclosure law makes foreclosure a judicial procedure. A lender must prove to the court that the borrower has defaulted on the loan, and that they, the lender, have made appropriate attempts to resolve the default with the homeowner. There is a definite sequence of events that must be followed as prescribed in the foreclosure law, and knowing that sequence in your state can help you understand your options in terms of resolving the issue before it goes before a judge.

In states that use a deed of trust rather than a mortgage, the lender must go through certain steps of notification as required by foreclosure law in that state, but does not need judicial permission to proceed with a sale or foreclosure on the property to which they hold a deed in trust.

States whose foreclosure law requires judicial action include: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Pennsylvania, South Carolina, South Dakota, Vermont, Washington and Wisconsin.

Brian Shelton makes it easy to sell your house fast. To claim your free report entitled “How To Sell Your House In 7 Days or Less“, visit the http://www.HouseSoldIn7Days.com/

So You Think You Want To Sell Real Estate?

Writen by Kimberle Balsman

The business of buying and selling real estate can be quite lucrative. The lure of high commissions is certainly enticing, and leads aspiring real estate entrepreneurs to believe that it’s easy to make a lot of money in real estate. Yet, the reality of selling real estate is very different.

The truth is that more than 80% of real estate commissions are earned by less than 20% of real estate agents. Furthermore, nearly 80% of all new real estate agents fail. These statistics are certainly discouraging and usually enough to give most people pause. Nevertheless, the excessive appreciation of home values over the past several years drove many vacillating individuals to take the risky plunge into real estate, hopeful that they, too, would rake in thousands of dollars in commissions in the booming real estate market. Then, the market started to cool, a natural fluctuation in the cyclical real estate market.

I’ve heard it said that the hardest part about a career in real estate is passing the real estate exam. I would have to respectfully disagree. The real estate business is a 24/7 enterprise. Thus, the only way to truly succeed in real estate is to eat, sleep, breathe and live real estate. As far as I am concerned, sacrificing your family, friends and personal interests is by far the hardest part about a career in real estate.

In the grand scheme of things, I spent a miniscule amount of time pursuing a career in real estate. I found, after little more than a year, that I simply did not want to devote my entire existence to real estate sales and promptly redirected my efforts elsewhere. My Aunt learned the same lesson in approximately the same amount of time. I would be remiss, however, if I did not play devil’s advocate and share with you that those few persistent and committed individuals who resisted the temptations of everyday life have, indeed, made and continue to make a substantial income from real estate.

So, if you are convinced that a career in real estate is your destiny, consider the following facts before you make the leap.

A real estate career requires a significant investment in money, as well as time. Regardless of your state of residence, the real estate commission will require you to pay fees to take the real estate exam. But, before you can even take the exam, you will be required to take a real estate course designed to prepare you for the exam and your career. (Note: not all states require the course, though most do). The cost of the course varies, but averages approximately $250. The exam usually costs in the neighborhood of $100, which varies by state. Thereafter, assuming you pass the exam, you must pay a licensing fee for your state’s licensing authority to issue your license to you. Once you become licensed, you will usually be required by your hiring broker to join your local association of Realtors. I paid in excess of $400 annually to join. Depending on the agency you work for, you may have to pay licensee or agency fees, which are usually a few hundred dollars. In order to get started marketing yourself as an agent, you must have business cards (upwards from $75 for a starter box) and other marketing devices (car magnets, listing signs, mass mailings, etc). Remember, too, that this is the Internet age. Therefore, a computer is essential. Most agents I worked with, myself included, used laptops. Some invested in desktop systems that, of course, had to be left in the real estate office.

After all of the initial start up costs, there are ongoing expenses like self promotion marketing and fuel. Right now, with gas prices as high as they are, I doubt struggling agents can scarcely get ahead. I once spent an entire day touring more than 14 homes with a potential buyer who expressed urgency in finding a new home and claimed to have cash readily available for the purchase. Despite all my efforts, he went home to “think about” the homes I had shown him, and I never heard from him again. I traveled several hundred miles that day alone. After being skunked several times, I finally landed my first listing and closed it in relatively short order. At last, I had a commission check. And, just like a teenager who earned her first paycheck and wondered who the devil FICA was, I looked over all the agency deductions and realized just how small my checks would be relative to all the hard work I had to put into each transaction.

All things considered, I was mildly successful as a new agent. I grossed more than $2 million in sales in my first few months. Sadly, however, after spending more than a year preparing for and developing my real estate career, my earnings from those sales yielded me income of little more than $11,000. Once I deducted all of my expenses for that same year, I netted very little income. Such is the life of a real estate agent.

It’s important to note, however, that each agency has its own fee and commission schedule. Some realty companies are required to deduct a franchise fee that is passed on to the franchisor (i.e. Century 21, Coldwell Banker, RE/MAX, etc.). In addition to franchise fees, some agencies keep as much as 50% of its agents’ commissions, plus a fee for malpractice insurance coverage, ostensibly in exchange for valuable services and paid marketing. Other agencies keep very little of your commissions but require its agents to pay all of their own marketing and office expenses, including desk rental fees (which can exceed $2000 a month in some areas).

Unlike other business enterprises, the amount of time, effort and money you pour into your business does not directly correlate to income earned. As I mentioned above, an agent can spend many weeks or months with a buyer showing property and working with lenders to qualify that buyer for a home loan. Sometimes the buyer will finally complete a transaction. Sometimes he will not. Likewise, agents regularly spend months showing their listed properties to prospective buyers and searching for other qualified and interested buyers. In the end, a sale may close or the seller may decide to terminate the listing and, perhaps, list again with another agent. So, a new agent must learn the valuable lesson to never count on any commission until the transaction has completely closed. Things can and do go wrong, often at the closing table. Unfortunately, some of my fellow agents, anticipating a closing, would make purchases against the uncollected commissions, which occasionally resulted in a serious financial crises for that agent.

One final word of caution for would be real estate agents – real estate litigation is on the rise. I know of several very good agents who became unwitting defendants through no real fault of their own. Rather, dissatisfied or remorseful buyers elected to target their agents instead of admitting their own carelessness or haste in buying a questionable property. That is not to say that some agents are not justifiable defendants. Indeed, there are an abundance of disreputable agents who methodically deceive their clients to ensure a commission. The deplorable fact is that lawsuits follow deep pockets. Real estate agents are generally considered to be wealthy, though this is certainly not applicable to all agents. Therefore, they are becoming more frequent targets for both legitimate and frivolous legal actions.

As with any career, there are rewards as well as drawbacks. Real estate agents are nearly always classified as independent contractors, which affords them greater autonomy and control over the direction of their business than ordinary employee employer relationships. For many, that single advantage is sufficient to offset the drawbacks of a demanding real estate career.

I hope I have offered an enlightened view into some of the realities of real estate sales as a career choice. Though a career in real estate sales certainly does not appeal to everyone, some agents I know wouldn’t have it any other way.

Kim Balsman, a former licensed Century 21 agent and Realtor, grossed more than $2 million in sales in her first few months as a Realtor. Upon moving to Colorado, Kim gave up her successful, albeit brief, real estate career to pursue her true passion, photography. Kim’s diverse background includes real estate, law, interior design, photography and writing. Kim now devotes all of her time to writing and photography. She owns Balsman Photography, LLC, a small, professional studio in Colorado’s Front Range. Kim and her husband, Bob, have two teenage children and enjoy all the many aspects of living in Colorado.

Real Estate Investing: Short Sale Package 101

Writen by Ross Treakle

I have been asked many times during my travels to conventions about the all important short sale package. First, a short sale package is what the bank or lending institution asks for before taking a discount on the 1st, 2nd, or even 3rd mortgage. The package includes many things that are important and which you can use to influence whether your short sale package is rejected or accepted. And don’t forget to throw in your own research if it might influence the lenders perspective of the property.

At the very least, with any short sale package you are preparing, include everything that is requested. This seems like a no brainer but sometimes people do not include some of the materials that are requested. A good idea also would be to keep track of what the different lending institutions request. When you see one institution requesting something that another institution does not, include that piece of material in both. You need to include all the same material in every short sale package, unless of course it is not requested and actually hurts your bid price.

Hardship letters are a very important part of any short sale package. When you go to the original homeowner and request a letter of hardship you should do a few things. First, make them hand write the letter. Second, make sure they tell the truth; the truth in many of these situations is more than sufficient for the lender to understand what the homeowner has gone through and why they are not paying the mortgage. Finally, keep it short! Make sure the homeowner writes a letter that gets to the point and does not include any fluff.

You should also always include police reports. Every neighborhood in every part of America has had some sort of crime. Make sure to include this, the worse the crime report the better off you are. But I have still heard of lending institutions being influenced by one reported robbery from two years prior. This is why you should aim to include the police report in any short sale package for any neighborhood regardless of how nice or upscale the area may be. Another aspect that is similar to the police report for each area is the reported sex offenders living in the area. They are registered and you can easily get this information. Include this report in your short sale package!

The ranking of the school district is also very important. In today’s world, more and more families are paying attention to the school districts that they move into. Every parent in America wishes for their children to receive a high level of education. This fact really does make homes in poor school districts harder to sell. The lending institutions know this so let them know if the home is in a poor school district. This little tidbit can easily influence the lending institutions view of the neighborhood around the home.

These are just a sample of the many additional documents and materials that you as an investor should be including in every short sale package you send to any lending institution. There are many other things that you might want to include but a lot depends on each circumstance. As you do more and more short sales, ask yourself what about the home or the neighborhood would make this an undesirable place to live. Keep track of all your answers and in little time you will be able to write short sale packages that will be impossible to be rejected!

As a short sale investor, you need to do everything in your power to make the lending institutions accept your short sale offers. To find out more about short sales and real estate investing, visit us at http://www.reaudiotips.com.

Home Appraisal Values Are Critical

Writen by Tom Laing

To most, owning a home is a necessity, but sometimes it is a matter of pride or a business investment. Home appraisal values become relevant if one wishes to sell his house. Home appraisal values is a technical term which means the value of a home in terms of money that it brings in a real estate market. Home appraisal values are a critical factor when it comes to assessing the selling price of the home while it’s under consideration.

Home appraisal values or the process of appraisal, if put in simpler terms, is usually performed by an authorized person called the appraiser. Appraisement, assessment, estimation, evaluation, and valuation are other synonyms invariably used to mean appraisal. Generally it is the lender who pushes for home appraisal values before financing the buyer. He does this so that in no point of time he is risking any money. On the other hand, such an appraisal helps assure that the buyer does not end up having negative equity on the home. At the same time, keep in mind that there is no guarantee that the lender requested appraisal reflects the market price of the property. Remember, all home loans require an independent appraisal – that is, it is the current home appraisal values that will determine the loan amount. Apart from the above mentioned condition, the home appraisal values come in handy for the home owner when he wishes to apply for refinancing, getting a home line of credit, and before selling.

Home appraisal values are often influenced by a set of valuation parameters that includes comparable sales, replacement cost, number of bedrooms and bathrooms and other improvements. This is, in technical terms, called the comparative analysis. It involves recording and analyzing home value data from your property and potential comparable properties, selecting the appropriate comparable data, developing reasonable adjustments based on market data and applying the findings to the subject (your property). Also the lot size and the type of community in which the home is located will often influence the market price and hence the home appraisal values. Another method used to determine home appraisal values are the Reproduction cost method. Here home appraisal values are reached by simulating the construction in the present day and finding the cost. But the margin of error is quite high in this case. Hence it is not a good enough method for finding out home appraisal values.

Home appraisal values are also influenced by real estate taxes, government services and the type of housing sector in which the home sits. The type of construction be it brick, frame or other substance – has a telling effect on the home appraisal values. Another factor that affects home appraisal values is the land on which the property sits. In prominent locations, the value of land makes the property a good buy – hence in this case could get higher home appraisal values. But if the land on which the property sits is a flood or earthquake zone or near an industrial dumping area, then the home appraisal values are going to be lower.

Therefore home appraisal values are crucial when it comes to getting a loan and while selling the house. The home appraisal values give a fairer idea for the owner about the current market value and hence the selling potential of the property in the real estate market. Above all make sure that home appraisal values are obtained from a true professional appraiser!

Copyright 2005

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