Baby Boomers Should Look Ahead

Future housing needs and planning is one of the biggest issues baby boomers will face in the years ahead. According to study conducted by AARP, MIT AgeLab and Hartford Advanced 50 team, 73 percent of homeowners ages 45-65 are planning on staying in their homes as long as possible.   Those surveyed indicated the 3 most important factors in deciding where to live as they age are living close to family (30%), feeling comfortable (25%), and affordability (20%).

All surveyed are aware they will need to alter their homes for the years ahead but few have actually implemented those changes. If you need help in getting your home comfortable as you age, feel free to call me and I can share some resources.

Exsisting Home Sales On The Rise!

Each area has its own unique market and recovering from the downturn in the economy is somewhat individual. But, looking at the overall “big” picture according to the National Realtor Association (NAR) statistics, exsisting home sales rose from December 2010 to December 2011 by 3.6 percent! The figures are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops. Now that is good news for everyone!

NAR’s chief economist, Lawrence Yun  is quoted in saying, “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

CoreLogic Chief Economist,  Mark Fleming wrote an article that summarizes the past, the present and looking ahead in 2012. His article is as follows: http://rismedia.com/2012-01-22/finding-the-positives-in-economic-and-housing-conditions-in-2012/

Palo Alto’s Growth vs. School Capacity…that is the question

The Palo Alto school board is in the throws of determing the direction to take on both the elementary schools and middle schools growth. Do they build a new middle school or place six-graders back into the elementary schools? In addition, the projected enrollment growth is not consitent throughout Palo Alto. Demographic consultants indicated the district will have signifiicant growth in southern region of Palo Alto, while enrollment is projected to decline in the north.

What will the impact of Senate Bill 375 (greenhouse-gas-reduction law) have on the direction of the school disctricts planning? The goal is to reduce greenhouse-gas emissions between 2005-2035 by 15 percent. In order to accomplish this goal, cities are encourage to build housing near job s and transit corridors. There are a couple of different scenarios, but this could mean as few as 6100 new housing units in Palo Alto and that number could rise.

If you would like to read more about the schools enrollment data or Palo Alto’s housing demands, go to the Palo Alto on-line.

Want to Get Off Junk Mail Lists?

A client of mine called and asked if I could pick up her mail while she was on vacation. She wanted to make sure those annoying credit card offers where not left in her mail box. She was frustrated of recieving two, sometimes three credit card offers a week.  She asked if I knew how to get off  solicitation lists so I did a little reseach. Here is what I found.

Junk mail is basically advertising designed to get you to buy products or services and is a result of direct marketing campaigns.  Companaies get your name when you purchase products or services.  Once you give your name and address you will probably be added to one or more mailing lists used by direct marketing businesses. Your information is gathered from house or car purchases, subscribing to a magazine, ordering something from a catalog, sending a donation to a charity, etc. etc. Your name is entered into a data base and it gets rented or sold to other companies and it snowballs from there.

Information on how to remove your name from these lists can be found on the  Direct Marketing Associations website. The website address is http://www.DMAchoice.org. You are able to register for their service both online or by mail.  In all, it takes about three months to start seeing a decrease in unwanted mail and you will need to reregister every three years in order for the service to remain in effect.

Hope this helps!

Rents Moving Up: Home Prices Soon to Follow?

I was reading an article today and found it interesting.  During the second half of 2011, we have seen a dramatic increase in demand for rentals in the Bay Area. In all, I would say with that demand, we have seen rents rise about 15-20% in all over this past year.  According to Lawrence Yun, chief economist of the National Association of Realtors, housing affordability is about the best its ever been, but tough lending conditions have made it difficult for buyers to take advantage of these good conditons.  Investors, many with cash,  are a good portion (22% in August) of the buyers.

Throughout the nation, rents rose better than a 3% annualized rate in the last quarter of 2011, making for an attractive rate of return for investors.  There is no reason to believe this rent growth will slow down, given the favorable demographics of the rising number of young adults over the next 20 years, low construction rate of apartments and the high number of owners of floreclosed homes who can’t buy in the near future.

If annual rates continue a gain of around 3.5%, then rents could double in 20 years.  If rent gains reach 5% this doubling would only take 14 years.

Investors can expect strong rent returns and home price appreciation over the long haul. According to Yun, with the real estate bubble clearly gone, future home prices should follow the future rent growth path. That means home prices could once again have a significant appreciation over the next 14-20 years.

Want to learn what more, visit http://economistsoutlook.blogs.realtor.org

 

TIPS ON IMPROVING THE VALUE OF YOUR HOME…Continues

Last week I shared some ideas and low cost tips on improving your home’s interior. This week let’s take a quick look at the exterior of your home. Especially during the winter months, the tidier your home and garden are, it helps minimize the winter doldrums. Again, not all these ideas may apply, but you may find something on this list you might have overlooked or think it may be worth trying. As always, continuous maintenance and upkeep on your property means you can enjoy the benefits of a beautiful home even if you are not selling. And the neighbors appreciate that too! This week we will focus on the exterior.

EXTERIOR

• Complete the landscape in the backyard.
• Trim all trees and shrubs that block the view of the house.
• Remove any dead plants, flowers and shrubs.
• Keep walkways, paths, sidewalks and gutters free of weeds and debris.
• Mow the lawn weekly during the spring, summer and fall. Mow as necessary during the winter. Spot seed or patch brown spots with sod.
• Plant flowers and shrubs that add color and brighten your lawn and landscaping.
• Use redwood compost, decorative bark, etc. as dressing around the base of plants, shrubs and trees.
• Keep tools, garbage cans, hoses, toys and other items stored neatly in the garage or shed when not in use.
• Repair any cracks/corrosion present in gutters and touch up with matching paint.
• Check for broken or cracked shingles or roofing tiles. A pre-emptive roof inspection with repairs can save a lot of headaches later.
• Check for worn, corroded or rusted flashing around vents and chimneys. Spot clean and use protective paint on all areas to match.
• Clear patios and decks of barbeques, charcoal, utensils, etc.
• Check for rotted boards and posts in decking and fencing. Add support for weak fence posts by adding “sister posts” or consider replacing posts.
• Use outdoor stain, sealants and protectants to brighten up bleached decking and fence.
• Add low voltage outdoor lighting in the front and backyard to enhance landscaping and prevent accidents on dark walkways.

GARAGE

• Keep as many items as possible neatly stored in rafters, cabinets or boxes.
• Try to make the garage – one, two or three car – appear to accommodate that many vehicles, even if it’s full of stored items and boxes.
• Remove unwanted or seldom used items often through garage sales and donations.

Keep this thought in mind, “What if I were considering buying this house? On a scale from 1-10, how would I rate the house?” Walk across the street and look at your home as if you were looking at it for the first time. I hope this information proves useful!

Is a Reverse Mortgage a Good Idea for Seniors?

Whenever I am asked about reverse mortgages I find myself cringe. If you are a homeowner over 62, this is a unique opportunity to acquire spendable funds from your home, even if the mortgage is not paid off. But, before you do consider what you are going to use the funds are for and is it your only resource.

For homeowners over the age of 62, you can obtain a reverse mortgage (also known as a HECM, a home equity conversion mortgage), which gives qualified senior homeowners a solution to help fund their retirement needs.  More importatnly to most independent seniors, a reverse mortgage helps them with the resources needed to live in their home as long as they wish.

Here are a few facts you need to know about a reverse mortgage:

1. Candidates must be at least 62 years of age, have significant equity in their property and be looking for a reverse mortgage on their primary residence only.
2. Anyone interested in applying for a reverse mortgage is required by law to complete a 45-minute counseling session with a HUD (Housing and Urban Development) approved counselor to really understand the ins and outs.
3. Payout from a reverse mortgage can be done several ways: all at once in a lump sum of cash; as a regular monthly loan advance; as a credit line that lets you decide how much cash to use and when; or you may have the option to choose a combination of any of these payment plans.
4. The amount of cash you can get from your home’s equity is determined by several factors including age, home value and location and current interest rates.
5. And lastly, please remember that reverse mortgages may have tax consequences, may affect eleigibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the homeowner.

If you are considering a reverse mortgage and would like more information, please go to http://www.reversemortgage.org

Welcome 2012 – More Tips on Improving the Value of your Home

A new year, a new resolution; clearing out the clutter and making the home fresh again.  These helpful tips will add value to your home and look refreshed whether you are selling or planning to stay put.  Regular maintenance is the key to keeping your home in tip-top condition.  This list just focuses on the kitchen, bath and interiors.  Not all may apply to your situation, but store it away for future reference.

INTERIOR

• Increase the wattage of bulbs in light fixtures to the maximum that is safe.
• Keep entryway flooring spotless and have a mat outside for wiping feet.
• Check tack stripping in corners of carpeted rooms for gaps.
• Vacuum often. Dirty carpets wear out faster and unevenly.
• Keep all windows and sills clean. Use razor blades to remove paint, decals, etc.
• Keep all woodwork spotless. Use “Liquid Gold” or a similar wood restorant to make cabinets and trim look new.
• Dust regularly and watch for cobwebs in corners and on light fixtures.
• Paint any room that needs more than a little touch up. If you aren’t sure, take down a pictue from the wall and look at the room again.
• Preferable colors of interior paint are: antique white, bone and frost. Stay away from pure white or eggshell as well as darker colors

KITCHEN

• Professionally clean all appliances, counters, backsplashes, cabinets and floors.
• Replace broken, worn or outdated knobs and hinges on cabinets.
• Make sure all cabinets close properly and all drawers operate smoothly.
• Replace or reface if practical; stovetops, ovens, fan hoods and other appliances that are avocado, pink, blue, yellow or brown. White, almond, beige, black or stainless are the preferable colors.
• Keep counters clean and clear. Anything not used in the kitchen should be stored out of sight. The more space you have available on the counter, the larger and more inviting the kitchen appears.
• If linoleum is cut, pitted, worn or a loud and a busy pattern; consider replacing it with a neutral and subtle-patterned sheet.  Do not install linoleum squares.
• Consider upgrading linoleum to new parquet, random plank, pergo, etc.

BATHROOMS

• Always keep counters clear. Put away bath toys, shampo bottles, etc. Keep daily toiletries in a basket that can be stored underneath the sink or in a cabinet.
• Keep extra furniture to a minimum.
• Limit pictures, paintings, photographs and wall hangings to a minimum.
• Fill the closets with toys, clothes, and anything else that might be left out. Anything extra reduces the size of the room.

These tips may be most useful when selling your home; but it is never a waste to update.  You might find something on the list you never thought of before.  As always, if you have questions give me a call.

Improving Your Qualifications For A Mortgage

As we are all aware based upon the turmoil in the mortgage industry, several years ago it seemed anyone could qualify for a mortgage; no credit, no work history, no down payment, etc.  Those times have changed.  In todays housing market  qualifying for a mortgage is a much more difficult task, but it can be done.  I have advice to help you navigate the murky waters of securing a mortgage.  Here are some helpful tips:

First, make sure to inspect all three of your credit reports.  Check over your reports from Equifax, Experian and Transunion.  Be sure that all information is correct.  If you see something that is wrong or does not belong to you, submit the necessary form to all three agencies to dispute the account. As you monitor you credit reports you will be able to help improve your FICO score. The FICO score is a measurement of your ability to repay a loan.  Unfortunately, mortgage lenders base your lending eligibility based on a score that doesn’t always accurately measure your financial stability. You can improve your score by paying down debt, paying all of your credit cards on time and keeping open accounts with a zero balance.

Next, save for a larger down payment.  Ever dollar counts. If you are able to increase you household income, great. That may seem like a tall order given today’s job market, but mortgage lenders want to be sure you can repay the loan.  Two-income families qualify easier than a single-income household. Get a second job, become a two-income family or start a home based business.

When you are considering your monthly payment, choose a realistic budget. Normally, a mortgage payment should be no more than 25% of your monthly income.  Choose a price range that fits that criteria.  If you make $4,000 a month, then a mortgage payment of $1,250 is appropriate.  Spending the majority of your income on mortgage payments makes you “house poor”.

Something that not all people consider is staying with one employer.  Stability in a job is key, especially in today’s market.  Staying with the same employer at least two years will weigh in your favor.

Now is the time to buy, but lenders are no longer willing to had out loans to just anyone. Don’t let this discourage you. Take the time to consider your options, fine tune your personal finances and set yourself up for success.

Reduce Holiday Waste This Season

Between all the baking, packaging from holiday shopping and the overall influx of items coming into our home during this time of year, my family seems to generates ALOT of recycling.  According to CalRecycle, more than 1 million tons of additional waste are generated each week nationwide between Thanksgiving and New Year’s Day. I can believe it! These tips can help your family reduce their waste:

* Use rechargeable batteries.  Include them with electronic gifts you may be giving this year.

* Send holiday cards made from recycled paper or send electronic greetings.

* Repurpose old holiday cards. Cut and use as gift tags, bookmarks or decorations.

* Use reusable bags. Take them with you when you shop or package gifts.

* Buy foods in bulk to reduce packaging waste.

* Compost all leftover foods. Use your green cart or backyard compost bin for food scraps and food-soiled paper.

Visit www.calrecycle.ca.gov/publiced/holidays/ for more tips.

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