Home buyers negotiating branden chhuor

Reasons To Buy a Home Today

Reasons To Buy a Home Today

Branden Chhuor, October 22,2014 (All rights reserved, permission to reprint with appropriate citations)

Many people in my Southern California market have asked me, “Is it a good time to buy a house?” My general response, “It depends on your situation.”
In most situations, people are looking at properties for sale to live in, not rent out. If this matches your situation, then it is definitely still a good time to buy, even with the increasing house prices within the past couple of years. The four factors I look for in determining when it is a good time to buy your Southern Californian dream home or first home are the following:
Interest Rates

A market with rising rent means that the real estate market is getting back on its feet and vacancy is low. When you have a situation such as today where rent is climbing faster than house prices year over year, then you are faced with the dilemma of cost to rent versus cost to own. As such, I would rather buy and lock in my monthly payment at a fixed amount than risk facing rent increases. Why pay for someone else’s mortgage? In addition, as a homeowner you would also reap the tax benefits and principal pay down on your mortgage.

Inflation is another factor I look at because it affects our purchasing power and the value of currency. I am surprised that the US Federal Reserve continues to downplay inflation and dismisses the notion of it. Have they not seen the prices of gasoline, milk, beef, and other consumer goods have all gone up over 30% the last 4 years while wages remain stagnant? I am betting that wage will eventually catch up with inflation and when that day comes, house prices will further increase to match the cost of material and labor to build a house. As a homeowner, you will be hedged against inflation because you will be paying a fixed monthly payment while your property steadily increases in value over time. Again, you will be paying down the principle, increasing your equity position instead of paying someone else rent.

Interest rate is the cost of borrowing money and we are currently at a 16 month low on the 30 year fixed rate ranging 3.8%-4.1%. From a finance perspective, it’s not costing much to borrow money and people should take advantage of. People don’t realize 10-15 years ago, the 30 year rate was nearly double at 6%-8%. Buying real estate for most people means leveraging their position by putting a down payment and borrowing between 5%-95% of the purchase price. If you are borrowing, doesn’t it make sense to borrow when interest rates are at and near the all-time low? Let’s say you (a borrower) with a solid credit score and you are looking for a conventional 30 year fixed rate with 20% down payment. Let’s assume that for every 0.50% increase in interest rates, it will result in a 5% drop in house prices. Here are some scenarios to show what I mean:
Scenario 1: Home price of $500,000 at 4.25% = $1,968 monthly mortgage
Scenario 2: Home price of $475,000 at 4.75% = $1,982 monthly mortgage
Scenario 3: Home price of $450,000 at 5.25% = $1,988 monthly mortgage
As you can see, yes, prices do drop as interest rates rises, but there’s a good chance your monthly payment has gone up.

Like that old saying goes, “Timing is everything”. The same goes for real restate. If you buy it a little too late such as 2007, then you were upside down on your property for the next 5-7 years. I believe today is still a great time to buy due to the fact that we just came out of the recession and real estate prices have adjusted. Southern California real estate historically has a cycle of 8-10 years of appreciation and then 3-5 years of depressed prices. If history holds true, then we are in the beginning of an appreciation cycle. Considering the other factors mentioned above, it’s safe to say the timing is still there for people to buy their first home.

Hopefully this reading gives you some idea of what I usually look for when people ask me the

Home buyers negotiating branden chhuor

Home buyers negotiating branden chhuor

question, “Is it a good time to buy a house?” This point of view is for those looking to buy a dream home or first home for the long haul of 5 years or more. If you are looking to buy for investment purposes, then it will depend on the area you are targeting. Stay tuned for the next article on real estate investing. Please feel free to reach out to me if you have any questions or comments.

property for sale orange county

OC Housing News


OC Home rates are up 6.4 % in September and also Property for sale Expert ask’s if the GSEs are going back to subprime financing?

An autumn chill sneaked into the property for sale orange county, freezing the average residence cost listed below the $600,000 limit touched briefly previously this year and keeping a lid on sales.

The average cost of an Orange County residence– or cost at the midpoint of all sales– was $585,000 last month, CoreLogic DataQuick reported Monday.
That’s up $35,000 from September 2013 for a 6.4 percent year-over-year acquire, DataQuick amounts show.  However it’s down $5,000 from August. Orange County’s mean cost generally dips around 1.3 percent from August to September as kids return to school.
September saw 2,980 Orange County houses, condominiums and also townhomes change hands, 64 systems greater than in September 2013.

The 2.2 percent rise was the very first year-over-year acquire in 12 months, however was due generally to the huge come by transactions that happened in late 2013 because of rising home loan prices and also lowering purchasers able to pay last year’s ballooning home rates.

September’s sales total amount was 34 units listed below August’s– again, normal for this time around of year. DataQuick amounts show that September sales fall around 10.4 percent from August to September.
Regionwide, the Southern California mean cost was $413,000, up 8.1 percent, DataQuick stated. Last month was the initial time in more than two years that none of the Southern California’s 6 regions uploaded double-digit year-over-year rate gains.
“Price appreciation has dipped into single-digit territory as even more would-be customers obtain priced out, financiers back off and also incomes increase modestly at most effectively,” DataQuick Analyst Andrew LePage stated.

Irvine Renter 11 Astute Observations

Mel Watt revealed a variety of changes created to release the credit report box and also promote borrowing. This does not suggest a go back to subprime.
Those people that viewed the real estate bubble in addition to breast and extensive it’s reasons are significantly worried for going back to the heartbreaking loaning methods of the past. Although some degree of credit rating report aiding to release was unavoidable, the last thing any type of one of us should want to watch is a go back to careless subprime loaning, especially since the United States Taxpayer is responsible for all the losses.

Recently’s statement of launching requirements at the GSEs thrilled everyone in the realty market. Lenders, real estate professionals, as well as homebuilders all are glad the chance to shut additional deals, yet prior to they commemorate, they should take an exceptional check out exactly just what was in fact announced as a result of the fact that none of it will certainly have much influence on the industry.
Mel Watt and Julian Castro expose property plan alterations
Sarah Wheeler, October 20, 2014
… Watt mentioned that the FHFA was explaining the Representations as well as Warranty Framework to help reduce repurchases.

“We realise that the Representation and Warranty Framework did not offer sufficient top quality to make it feasible for loan provider to understand when Fannie Mae or Freddie Mac would exercise their option to need repurchase of a funding. And also, we know that this concern has really added to lending institutions imposing credit past overlays that raise the cost of lending as well as restrict providing to customers with much less as compared to best credit scores or with much less standard monetary circumstances.”.

Watt mentioned the FHFA’s modifications consist of simply pointing out life-of loaning exemptions, which fall under 6 groups: loan_qualification.
1. Misrepresentations, misstatements and also non inclusions.
2. Information mistakes.
3. Charter compliance problems.
4. First-lien leading concern as well as title matters.
5. Lawful conformity offenses.
6. Unwanted home mortgage items.

For financings that have currently made repurchase comfort, Watt mentioned that just life-of-loan exclusions could trigger a repurchase under the Reps and guarantees structure.
In one of one of the most significant policy adjustments, Watt revealed that the FHFA is establishing a minimal number of financings that should be identified with misstatements or information inaccuracies to trigger the life-of-loan exemption, to make certain that the GSEs will absolutely be responding to a pattern of misrepresentations or information blunders, not just outliers.
The FHFA is additionally consisting of a “significance” demand to the misstatement and also inaccuracies implying to make sure that GSEs could possibly take into consideration whether the blunder would definitely have protected against moneying the funding at the front end.
Watt asserted the GSEs would certainly be announcing additional information on adjustments related to representatives as well as guarantees in the near future, including: two_years.
Establishing an independent dispute resolution procedure.
Recognizing solution systems as well as alternate treatments for lower-severity financing problems.
Repairing representations as well as solution guarantees.
Transforming compensatory charges in addition to repossession timelines.
… “I wish our activities offer appropriate surety to enable your company to reassess existing credit report overlays and even a lot more highly make responsible financings available to creditworthy customers. This will certainly lead to a real estate market that is not simply much better for debtors, yet additionally a lot better for the Enterprises along with loan provider and also helpful to our nation, Watt specified.
Castro explained HUD’s technique to expand ease of access to credit history with its Blueprint for

Access projects:
Overhauling the Single Family Housing Policy Handbook to provide loan provider clearness on policies and also conformity. Presenting the Supplemental Performance Metric to record a more in-depth perspective of a lending institution’s portfolio efficiency, contrasting lending carriers on their efficiency with others doing business in specific credit guide ranges.
Redrafting the Loan Defect Taxonomy to enhance 99 numerous codes straight into 9 categories of funding troubles.
Starting a Ginnie Mae aviator program to provide smaller sized loan provider more access to the added market.
These changes will certainly be welcomed with a great deal of enjoyment in the market as well as partially improve loaning as it makes clear the limitations, yet it doesn’t materially change anything.

Source: http://ochousingnews.com/blog/gses-returning-subprime-lending/#ixzz3Gng5JTD9.


Los Angeles and Orange counties are the least-affordable housing market in the country

Los Angeles and Orange counties are the least-affordable housing market in the country. And it’s likely to only get worse.

That’s according to new figures due out Thursday from real estate website Zillow, which found that renters here need to pay more of their income to afford a place to live than anywhere else in the country.

Adding to the affordability woes, Zillow is predicting that home prices here will climb 5.7% in the next year, outpacing likely growth in most people’s paychecks.

For people who aren’t on the high end of income distribution — teachers, police officers — it becomes a real issue.
– Svenja Gudell, Zillow’s senior director of economic research
The real estate website crunched for-sale and rent prices and incomes across 35 housing markets in the U.S. It found that a family earning the median household income of $59,424 in metro Los Angeles — defined as L.A. and Orange counties — would need to spend 47.9% of its income to afford a median-priced rental apartment, and 42.6% to afford a median-priced house. Both were the highest share in the U.S., though L.A. tied with San Francisco in for-sale housing.

Prices here have grown much faster than incomes in the last few years, said Svenja Gudell, Zillow’s senior director of economic research. That’s pushing L.A. housing out of reach for many.

“For people who aren’t on the high end of income distribution — teachers, police officers — it becomes a real issue,” she said.

lRelated New FICO criteria could help borrowers
New FICO criteria could help borrowers

Zillow’s figures echo a recent study by UCLA’s Ziman Center for Real Estate, which also pegged Los Angeles County as the least-affordable market in the country, and said that the rent crunch here has spread up the income ladder, to affect more middle-class households.

It’s a twofold problem, economists say.

Housing prices here are high, though not as high as in the Bay Area, and comparable to New York, Washington and Boston. Those places score better on affordability measures, though, because people there tend to earn more than the average Southland resident. Median household income in the San Francisco area in the second quarter was $76,239, according to Zillow; in the L.A.-O.C. area it was $59,424.

L.A.-O.C. housing market is least affordable in U.S.
Prices have grown much faster than incomes in the last few years, a Zillow research director said. That’s pushing L.A. housing out of reach for many. (Cheryl A. Guerrero, Los Angeles Times)
“Los Angeles has a lower median household income than comparable cities such as New York or San Francisco but only a small difference in median rents,” the UCLA report said.

Even for professionals with good incomes, buying a house in Southern California is a heavy lift, as Natalie Lohrenz sees every day.

As the director of counseling at the Consumer Credit Counseling Service of Orange County, she works regularly with first-time buyers trying to purchase a home in a place where the median house cost $600,000 in July, according to CoreLogic DataQuick. Last week, Lohrenz said, she met a registered nurse with a six-figure income who was struggling to buy a two-bedroom townhouse in Irvine.

@tear_down_my_reason Notice that most people live outside of California, I have relatives in Chicago and Michigan (not Detroit) and they like it there. Now that I have my piece of Golden State paradise near the coast (I have ocean views sitting on the throne). Remember Moonbeam V1.0 and small…
AT 1:16 PM AUGUST 22, 2014

“In the majority of the country, she’d have no problem at all,” Lohrenz said.

One reason California is so unaffordable, said Gudell, may ironically be that it got hit harder in the housing bust than high-cost East Coast markets. Prices crashed. Investors scooped up homes cheap. Then as the market recovered, the price of what was left surged.

“They almost overshot,” Gudell said. “These California markets have these extremely high home values now, but incomes haven’t kept up.”

Related story: High housing costs are a drag on California’s economy, report says
Related story: High housing costs are a drag on California’s economy, report says
Tim Logan
If there’s good news, it’s that those price gains are slowing down. Zillow projects — based on supply, income growth and other factors — that prices here will climb 5.7% in the next year, more than twice the national average. But that’s barely half the pace they grew over the last year, and down sharply from the 8.7% annual jump the firm projected a month ago. Slow income growth is clearly putting a damper on demand, Gudell said.

And the places where rents are climbing fastest tend to be places with strong job growth. Zillow said rents are up nearly 20% in the last year in Santa Monica and Venice, where tech jobs have surged. Rents have fallen in more remote areas such as Lancaster and Palmdale.

That trend probably will continue, Gudell said, as the housing rebound fades and growth becomes driven more by jobs and income.
“It wasn’t as much of a jobs story six months ago,” she said. “Now we have a healthy job market and that’s really what’s driving home values.”

In the long run, that’s a healthy thing, said Keith Gumbinger, vice president of mortgage-tracking firm HSH.com. Price growth based on market fundamentals is a lot more sustainable than growth generated by market swings. Still, he said, it’ll take awhile to work out the damage of the last few years.

“We’re falling back to typical dynamics, and that should be healthier overall,” he said. “But income growth, wage growth, has been pretty weak. They’ve got a ways to catch up.”


Top things to do in Southern California

Property for Sale Expert Reveals Top things to do in Southern California

Disneyland Resort

Located in Orange County, the world-famous Disneyland Resort (disneyland.disney.go.com) plays host to the Disneyland amusement park, Disney California Adventure Park, and Downtown Disney, an outdoor enjoyment intricate fulled of stores, dining establishments, and also hotels. Combined, the family-friendly motif parks offer greater than 85 tourist attractions, consisting of Matterhorn Bobsleds, Space Mountain and also the California Screamin’ roller coaster.

Hollywood Boulevard

Hollywood Boulevard showcases renowned sites like the Hollywood Walk of Fame (hollywoodchamber.net) and also Grauman’s Chinese Theatre (chinesetheatres.com), an operating theater with flick celebrities’ footprints and handprints found in the entryway. The Hollywood & Highland (hollywoodandhighland.com) amusement complex consists of various shops, dining establishments as well as the Kodak Theatre, the home of the yearly Academy Awards wedding.

Hollywood Bowl

The Hollywood Bowl (hollywoodbowl.com), a substantial outdoor music place, acts as the summer house for the Los Angeles Philharmonic as well as a wide range of various musical acts. Perched on a hill, the Bowl permits picnicking, consisting of containers of wine, throughout the grounds as well as inside the location itself before and during efficiencies.

San Diego Zoo

The San Diego Zoo (sandiegozoo.org) lies within Balboa Park and also functions greater than 4,000 animals, including huge pandas, African elephants, polar bears, meerkats and cougars. The zoo also gives a 35-minute cable car tour, various animal stage shows as well as 10 on-site restaurants and laid-back restaurants.

Santa Monica Pier

Constructed in 1909, the historical Santa Monica Pier (santamonicapier.org) features various carnival rides, consisting of a roller rollercoaster as well as towering Ferris wheel. The boat dock likewise provides a vintage 1922 slide carousel, a fish tank as well as games, and also multiple treat carts, sit-down restaurants and an antique ice lotion shop.

Catalina Island

Catalina Island (catalina.com) rests about 26 miles off the coastline of Southern California. The island refuge features bike-riding paths, rambling tracks, zip lining as well as greens, along with exceptional snorkeling as well as scuba-diving problems. Catalina also plays host to various boutique hotels and also hotels. Although the majority of site visitors arrive using watercraft or ferry, some companies offer chartered helicopter trips to the island.

Large Bear Lake

Found around 100 miles northeast of Los Angeles in the midst of the San Bernardino Mountains, Big Bear Lake (bigbear.com) givings as a year-round location. The mountain town offers a host of outside tasks, consisting of fishing, boating and horseback using, and also winter snowboarding and snowboarding hotels. The area additionally showcases a zoo and also numerous health facilities.

Hand Springs

The desert hotel community of Palm Springs (visitpalmsprings.com) exists 110 miles eastern of Los Angeles. Providing roughly 350 days of sunlight a year, Palms Springs showcases many fairway, an airborne tramway around Mount San Jacinto, and also the Living Desert, a 1,200-acre wildlife and also organic park. The area likewise includes a host of trendy resorts spruced up in midcentury design.

Universal Studios Hollywood

Universal Studios Hollywood theme park offers a behind the curtain tram tour of numerous movie sets and also prop items, including Psycho’s Bates Motel and the shark from “Jaws.” The park additionally includes roller rollercoasters, stage shows and 3-D excitement trips. Found directly outside the park, the outside Universal Studios CityWalk features sit-down dining establishments, casual restaurants, boutique and also a big show place.

SeaWorld San Diego

SeaWorld San Diego plays host to a wide range of aquatic life, including penguins, dolphins, turtles, sharks and also killer whales. The theme park likewise showcases various fish tanks, animal-themed performance, and thrill trips, such as aerial tramway gondolas, river-rafting tubes, and also a consolidated water flume and also roller-coaster attraction.

The hill town supplies a host of outdoor tasks, consisting of fishing, boating and also horseback riding, as well as wintertime skiing and snowboarding resorts. Providing roughly 350 days of sunshine a year, Palms Springs features various golf training courses, an aerial tramway up to Mount San Jacinto, and also the Living Desert, a 1,200-acre wildlife as well as organic park. The area likewise includes a host of posh hotels decked out in midcentury design.

The park additionally consists of roller rollercoasters, phase shows and 3-D excitement rides. Situated directly outside the park, the exterior Universal Studios CityWalk showcases sit-down dining establishments, laid-back restaurants, specialized shops and also a large show place.

This is our bonus attraction

The Nazi House
If you think that a sinking town caused by landslide and an abandoned old zoo are not weird enough, then how about a 50 acres Nazi compound in the Santa Monica mountain minutes from the popular third street promenade?
Inside the Nazi House
Murphy Ranch, the Nazi compound, or locally known to the residents as the Nazi House is located in the Rustic Canyon of Santa Monica Mountain. This complex was built by American Nazi sympathizers. Winona and Norman Stephens and their followers shortly took over the canyon and started to build this compound. The place was supposed to be self-sustaining Nazi campground with electricity generator, concrete walls, water tanks, and a massive mansion making it the perfect place for Hitler and his military to plan a plot to take over the U.S.

Of course, World War II ended quite differently that they expected and LA police raided the place, arrested those involved, and shut down the complex. Today, the ground is open for the public to go and explore. Just like any other ruins and abandoned places in LA, the building is covered in graffiti and trash. Actually, it’s the dirtiest place we have ever been in LA. There was just so much trash and junks. The place is completely unsupervised.


Our top pick in activity must do’s in southern California – 

Is to take a ride along “The Strand” bicycle path – 22 miles of easy riding along Southern California’s gorgeous coastline. Along the route, you will pass by numerous beautiful beach towns, each with their own unique look and attractions. Beautiful scenery, plenty of fun stops along the way, and an awesome workout all rolled into one – who could ask for more?! Highlights along the route include: the Manhattan Beach Pier, Venice Beach, and the Santa Monica Pier. To date the most fun bike path I have ever experienced! A must do on any visit to Southern California!

Finally the “Non ranking must do, and don’t think we are crazy” but you must go to In and Out burger.