Rents are headed up! Time to buy if you're a renter, and also if you're an investor!
Strangely, if you are a renter or an investor, you are in a great position to buy a home or income property and reap great rewards.
Rents going up mean renters are going to be paying more, without the benefit of building equity. Money just flows out. Low home prices and interest rates make it very attractive, too!
Investors are excited, too. Interest rates are incredibly low and home prices are way down. Best opportunity in a loooooong time to get an income property at rock bottom prices.
So check out this article at KCM Blog: http://www.kcmblog.com/2012/02/08/where-are-rents-headed/
Thanks for watching!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Interested in Real Estate Investing? A Few Things to Consider
Investing in real estate long-term can be a lucrative way to generate additional income and long-term financial stability. Unfortunately, real estate investing isn’t as easy as it may seem to be on the surface. There are various elements involved in the process that can affect the overall investment and its long-term growth. If you are considering an investment property, here are a few things you should research prior to investing.
Generate a personal credit report. This will allow you to ensure that the report accurately reflects your current financial situation. Keep in mind inaccuracies on your credit report can take months to clean up, so you’ll want to review the report early on in the process.
Liquefy needed cash. Often, individuals have cash tied up in other investments, such as stock or CD accounts. You will want to ensure that you allow enough time to free up these cash investments prior to beginning your search, as cash will be a requirement when purchasing an investment property.
Research the market. Understanding appreciation rates, historical statistics, crime index and a variety of other metrics is imperative when looking at real estate investment properties. An experienced real estate agent will be a huge asset throughout this process in particular.
Discuss your plans with friends and family. People often go into a real estate investment venture with a partner. This allows the investors to split costs and expenses up front, which can decrease the upfront cash needed per individual. Obviously, you will want to ensure that the other person is in good financial standings and can be trusted in holding up his or her end of the bargain.
These few simply tips will assist in getting you into the mindset necessary as you begin thinking about your future in real estate investing. If you have any additional questions or would like to speak further about investment opportunities, please feel free to contact me.
Upcoming Free Seminar!
Please join us for a free seminar on Investing in Long Beach Real Estate, Thursday, May 26, 2011, at 6:30pm at Mimi’s restaurant, 6670 E. PCH, in Long Beach (right across from Petco). Our team of real estate experts, including realtors, bankers, CPAs and other professionals, will be presenting live case studies and tips on how to be successful in real estate. For more information, check out:
www.InvestingInLongBeachRealEstate.com
Thanks for watching!
Peter Werrenrath
“How can I help?”
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Freddie Mac Offers Rebates on Bank-Owned Properties
According to Inman News, Freddie Mac has an incentive of up to 3.5% rebate for properties in the HomeSteps program that are in escrow by 7/31/11, and they have to close by 9/30/11. The rebate comes in the form of closing costs credits. This incentive only applies to owner-occupied properties.
Fannie Mae also has a HomePath rebate incentive, with escrow closings by 6/30/11 qualifying. Click here for their official announcement.
Here's Freddie Mac's official announcement: www.homesteps.com/homebuyer/offers.html
Click here for Freddie Mac's latest quarterly report to its investors. Looks like things are mixed as usual, with bank-owned properties doing better since the end of last year, but up about 21% since March, 2010.
Stay tuned for more good news from our friends at Freddie & Fannie!
Thanks for watching!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Tell Congress: 20% Down Payments Put the American Dream Out of Reach
What's at Stake
NAR believes Congress intended to create a broad QRM exemption. Evidence shows that responsible lending standards and ensuring a borrower’s ability to repay have the greatest impact on reducing lender risk, not high down payments. Proposals that require high down payments will drive more borrowers to FHA, increase costs for borrowers by raising interest rates and fees, and effectively price many eligible borrowers out of the housing market.
A provision in the Dodd-Frank Act requires that financial institutions retain 5% of the risk on loans they securitize. The purpose is to discourage excessive risk taking and create strong incentives for responsible lending and borrowing. Congress came up with the QRM concept to ensure that banks were only putting up ‘safe’ loans for securitization. NAR supports this goal, but in practice, regulators have come up with draconian parameters for what constitutes a QRM.
The National Association of Realtors® (NAR) feels this will not only affect buyers, but would also affect the ability of home owners to sell their homes, since there would be fewer buyers who could qualify for home ownership.
NAR wants federal regulators to honor Congressional intent by crafting a QRM exemption that includes a wide variety of traditionally safe, well underwritten products such as 30-, 15-, and 10-year fixed-rate loans; 7-1 and 5-1 ARMs; and loans with down payments in the 5% to 20% range with PMI, where required, and with other features found in low-risk loans such as no prepayment penalties or balloon payments.
Dream Out of Reach
Do you think a mandatory minimum 20% down payment is reasonable? Can you envision what will happen to the real estate market if new regulations governing Qualified Residential Mortgages (QRM) take effect this year? Many elected officials in Congress did not intend for these regulatory provisions to be so narrowly defined. We must continue our efforts to explain how detrimental the new QRM rules would be to the ongoing housing and lending crisis in America. According to NAR Research, 60% of recent home buyers made less than a 20% down payment, and it would take 14 years for a typical person to save up a 20% down payment to buy a median-priced home. Please contact Congress today and ask them to make it clear to the regulators that this proposed regulation was not their legislative intent and to instead implement a more reasonable Qualified Residential Mortgage (QRM) that will keep credit-worthy buyers in the market and able to acquire a loan.
I just took action to ask Congress to help us get this proposed regulation changed. This QRM issue is very important to keeping the dream of home ownership alive in America and keeping our already struggling markets on the path to recovery.
I urge you to add your voice by sending this letter to your Senators and Representative today.
Thanks for listening!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Leisure World: The Ultimate Retirement Community
Retirement communities can often conjure up images of mediocre living environments that lack a charming lifestyle, but Seal Beach’s Leisure World defies any and all stereotypes associated with retired living. The community got its start in 1960, when construction began. By 1962, the first residents were ready to move it and make it home. Today there are approximately 9000 residents that are still enjoying the quaint, yet entertaining lifestyle that Leisure World offers its residents.
In addition to the typical amenities that retirement communities provide, such a pools, spas and exercise rooms, Leisure World goes far beyond the ordinary. The community is home to a variety of restaurants, nine-hole golf course, bowling alley, horseshoe pits, movie theaters, and a host of other activities that allow the residents to enjoy an exceptionally high quality of life. For those guests who require steady medical care, the community accommodates their needs with a 24-hour pharmacy, laboratory for testing, 24-hour ambulance service, on-site physicians and a medical staff that supervisors those who need a little extra attention.
The community is a little over one square mile and provides two different types of property options – cooperative units and condominium. With a full time administrator on site, policies are enforced at all times, giving residents a sense of security and peace of mind.
Residents are proud to call Leisure World home and consistently claim that the retirement community feels more like a permanent vacation at a resort than a “retirement home.” If you are interested in learning more about the Seal Beach’s Leisure World or properties currently available in the community, please feel free to contact me!
For more information on Leisure World and other Seal Beach events, check out our friends at www.LeisureWorldLife.com, part of the Seal Beach Group (www.SealBeachGroup.com).
Thanks for watching!
Peter Werrenrath
“How can I help?”
562-208-9818
@LBHomesLiving
Jewels of the Night: Terrific Fun, and an Auction to Boot!
Saturday, 5/14/11, 5p-???, at the Cal State Long Beach Pyramid. A silent auction is just a great thing! You see all sorts of things that you didn't know you wanted or needed. I have a friend who won an Andre Agassi tennis racquet one year, VIP tickets to the Tonight Show, and a week's stay in a condo on Kauai! Lucky guy, and the Cal State Long Beach Athletic Department benefited, too.
Jewels of the Night promises to be a great evening benefiting athletic scholarships at Cal State. A chance to sample over 100 restaurants, bid on fabulous auction items. Come meet your friends, and have a blast!
For tickets and other details, check out www.longbeachstate.com/jewelsofthenight.
Thanks!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Water Conservation: Still Important to Southern California
We had a pretty good winter with plenty of rain, but it's a good idea to keep up our conservation efforts. We live in an arid region, so good water usage habits will help us both now and the next time we are in a drought situation.
Here are some great water conservation tips, published by the Los Angeles Department of Water & Power:
Drinking Water: Don't let the water run until it is cold. Refrigerate a bottle of tap water instead.
Food Preparation: Clean food more efficiently with a vegetable brush. Fill a sink or pan to rinse vegetables. Don't defrost using running water. Defrost foods overnight in the refrigerator or use the microwave.
Dish Washing: Conserve water when washing dishes by hand. Don't allow the water to run. Fill sink with soapy water, wash dishes, then rinse.
Dishwasher: Don't pre-rinse; scrape food first using a spatula. Soak very dirty pans & dished before washing. Run the dishwasher only when it's fully loaded. Save energy by drying dished by hand or air.
Toilet: Don't use the toilet as a wastebasket. Replace an old toilet with a water-efficient model. Check for leaks by adding a few drops of food coloring or dye tablets to the tank. Coloring will appear in the toilet if it is leaking
Shower: Save water with a low-flow shower head. Take shorter showers. Turn the water off when soaping up and shampooing. While waiting for the shower to warm up, catch the cold water in a container to use on plants.
Bathtub: Fill the tub only halfway.
Bathroom Sink: Turn off the water while brushing your teeth or shaving.
Faucets: Repair any leaks. Check and replace any worn out fixtures, washers and hose connections. Install low-flow faucet aerators.
Landscaping: Aim sprinklers at plants, away from driveways and sidewalks. Repair leaks and broken sprinkler heads. Step on your grass. If it springs back when you lift your foot, it does not need water. Don't water when it's raining. Many automatic timers can be fitted with rain shutoff devices. Reduce water loss due to evaporation and wind interference by watering before 8:00am. Install a "smart" sprinkler controller, which automatically measures how much to water. Upgrade your sprinklers with new, water-saving rotary nozzles, which keep your landscape healthy while reducing run-off.
Outdoor Cleaning: Clean without water. Clean sidewalks and driveway with a broom, not a use. In some cities, it's illegal to use a hose as a broom.
Car Washing: If you wash your car at home, use a bucket and a hose with a self-closing nozzle. If you like to have someone else do it, go to a car wash that recycles water.
Pools & Spas: Use an insulated cover to cut down on evaporation. Repair leaks around the pool and spa pumps.
These water saving tips will go a long way toward conserving our precious water supply.
Thanks for keeping green!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Disastrous Rent Control Measure on the Table
RED ALERT RED ALERT RED ALERT
There is a rent control measure that is making its way through the California State legislature. Essentially, it will allow local governments to enforce residential rent control on newly constructed units.
This could be disastrous for the California investment property market, real estate in general, jobs and significantly damage the economic recovery. If we have statewide Rent Control on new construction, new units will not be built, thousands of potential construction jobs will be lost, banks will not invest in rental housing and owners will not get a fair return on their investments.
The following is a communication from the Apartment Association of California Southern Cities:
Thank you for your calls and emails to Senator Alan Lowenthal regarding SB184 when it was heard before the Senate Transportation and Housing Committee.
Unfortunately Senator Lowenthal did not heed our requests and voted in favor of statewide rent control on new construction. In fact, he actually made the motion to pass the bill out of committee. He was the pivotal vote that sent this PRO RENT CONTROL bill to the Senate floor, endorsing price controls on a percentage of units in a new building.
If this bill – SB184 (Leno) – passes in the next two weeks when it comes before the entire Senate, every local government will be able to enforce residential rent control on newly constructed units. Please contact at least three of the following senators, tell them you live in LA County and urge them to vote NO on SB184. (Also, contact Senator Lowenthal and ask him to change his position for this floor fight: phone: (916) 651-4027 email: senator.lowenthal@sen.ca.gov.)
Senator Rod Wright – 25th Dist. – (916) 651-4025 – senator.wright@sen.ca.gov
Senator Ted Lieu – 28th Dist. – (916) 651-4028 – senator.lieu@senate.ca.gov
Senator Curren Price – 26th Dist. – (916) 651-4026 – senator.price@sen.ca.gov
Senator Ed Hernandez – 24th Dist. – (916) 651-4024 – senator.hernandez@sen.ca.gov
Senator Kevin de Leon – 22nd Dist. – (916) 651-4022 – senator.deleon@sen.ca.gov
Senator Ron Calderon – 30th Dist. – (916) 651-4030 – senator.calderon@sen.ca.gov
Senator Bob Dutton – 31st Dist. – (916) 651-4031 – senator.dutton@sen.ca.gov
Senator Lou Correa - 34th Dist. – (916) 651-4034 – senator.correa@senate.ca.gov
Senator Bob Huff – 29th Dist. – (916) 651-4029 – senator.huff@sen.ca.gov
Senator Tom Harman – 35th Dist. – (916) 651-4035 – senator.harman@sen.ca.gov
Senator Tom Berryhill – 14th Dist. – (916) 651-4014 – senator.berryhill@senate.ca.gov
Senator Sam Blakeslee – 15th Dist. – (916) 651-4015 – senator.blakeslee@senate.ca.gov
Senator Bill Emmerson – 37th Dist. – (916) 651-4037 – senator.emmerson@sen.ca.gov
Senator Jean Fuller – 18th Dist. – (916) 651-4018 – senator.fuller@sen.ca.gov
Senator Gloria Negrete-McLeod – 32nd Dist. – (916) 651-4032 – senator.mcleod@sen.ca.gov
Senator Sharon Runner – 17th Dist. – (916) 651-4017 – senator.runner@sen.ca.gov
Senator Tony Strickland – 19th Dist. – (916) 651-4019 – senator.strickland@sen.ca.gov
Senator Juan Vargas – 40th Dist. – (916) 651-4040 – senator.vargas@sen.ca.gov
Senator Mimi Walters – 33rd Dist. – (916) 651-4033 – senator.walters@sen.ca.gov
Senator Mark Wyland – 38th Dist. – (916) 651-4038 – senator.wyland@sen.ca.gov
Thanks for your support.
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Announcing "Investing in Long Beach Real Estate" - - Your Team for Success!
Mark your calendars for April 21, 2011. A fabulous team of real estate experts is coming together to create a series of information sessions on how to be a successful investor and build your financial future. It's geared towards both first time investors and experienced income property owners. Knowledgeable experts will share their knowledge and experience, and answer any and all your questions.
The first sessions of Investing in Long Beach Real Estate will focus on investing in single family residences, duplexes, triplexes and fourplexes. Later sessions will encompass multi-family dwellings, such as apartment buildings.
Plan on coming to the El Torito Restaurant on Thursday, April 21, 2011, at 6:30pm.
And guess what? Free tacos and soft drinks to all attendees!
Check out our web site for complete information about the panel discussions, our team of experts, informative blog posts and more at www.InvestingInLongBeachRealEstate.com.
See you there!
Invest in Long Beach...Invest in Yourself!
Peter Werrenrath
"How can I help?"
562-208-9818
@LBHomesLiving
Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Media Hypes Real Estate Market Woes; I'm Not So Sure About That!
I’m compelled to write this month because of ongoing negative reports in the media about the state of the housing market and the possibility of a ‘double-dip’ real estate recession. My motivation to start writing was provided by the presenters of our news.
Double Dip? Not in My Neighborhood!
I just finished an article from CNNMoney.com titled “Home Prices Near Double Dip”. It states that, “according to the S&P/Case-Schiller home price index covering 20 major markets fell 3.1% year over year, hovering near the market’s bottom in April 2009.” Representatives for S&P (Standard and Poor) state that “there’s just a lot of glut out there and that’s why housing prices are dropping.” Let me point out the misconceptions and fallacies of their rationale.
Local is Where It's At
They forget that housing markets are hyper-local and that they also fail to qualify any of their comments or data to reflect the ‘artificial’ stimulation of housing activity between 2009 and June of 2010. That ‘artificial’ stimulus was the hugely effective Federal and State Tax Credit program that expired midway through last year. What the media is doing is comparing, for example, February 2011 (No tax credit) to February 2010 (Tax credit). Not an accurate comparison whatsoever, “Apples to Oranges”. Finally, there isn’t a ‘glut’ of listings in the Long Beach marketplace. In fact, it’s just the opposite, with agents struggling to find suitable inventory to show their buyer clients. Our Supply of Inventory here is only 4 months and down from February of 2010 by 27%. We are enjoying improving activity as we move into the busiest time of our year.
What's Up in Real Estate? Interest Rates and Prices Will Be!
I recently had the pleasure of hearing the CEO of Realogy, Richard Smith, speak. Realogy is the parent company of the notable name brands in residential real estate that include Coldwell Banker, Sotheby’s, Better Homes and Gardens, Century 21 and ERA. As the leader of the firm he has access to information that few others do. He shared that “once we get past the first half of the year and the inaccurate comparisons fostered by the media we will begin to see the comparisons become very favorable and consumer confidence will begin to rise.” He also feels that we will begin to see interest rates moving up and prices beginning to show modest gains throughout 2011 and into next year.
More and Better Information is the Key
I hope this letter will help you in adding a proper perspective to the real estate news. Please give me a call if you would like current and local data on the Greater Long Beach area. I look forward to speaking with you soon.
Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
Thanks.
Peter Werrenrath "How can I help?" 562-208-9818 @LBHomesLiving Please feel free to share your comments on this subject! Let me know if I can help answer your questions or find out any information that you need on this or any other topic.
