WhyBuyNow?BecauseRealLifeIsntAGame.
RealLifeisaboutRealDecisionsandRealFinancialOpportunities.
RealEstateResourceServicescanshowyouhowtakeadvantageofthecurrentrealestatemarketandgetyouonthewaytoyournewhome.
WhyBuyNow? HOMESARESELLING!
o 35,860NewandResalehousesandcondosweresoldinCaliforniainthemonthofNovember2009,down13.1%fromOctoberandup11.5%from32,163fromNovember2008.
HOMESARENOWAFFORDABLE!o ThemedianpricepaidforahomeinNovemberwas$261,000,up1.6%from$258,000inNovember2008.TheyearoveryearincreasewasthefirstsinceJuly2007whenthe$478,000medianwasup0.8percentfrom$474,000ayearearlier.
o PAYMENTSARELOW!
o Thetypicalmortgagepaymentthathomebuyerscommittedthemselvestopayinglastmonthwas$1,106,58.1%belowthecurrentcycle'speakinJune2006.
Source:MDADataQuickInformationSystems.Allrightsreserved.
$250,000$270,000$290,000$310,000$330,000$350,000$370,000$390,000$410,000$430,000$450,000$470,000$490,000$510,000$530,000$550,000
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CALIFORNIA MEDIAN HOME SALES PRICE December 1968 - November 2009
$10,000$30,000$50,000$70,000$90,000
$110,000$130,000$150,000$170,000$190,000$210,000$230,000
,
1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008
S
A
YEARSource: Empire Real Estate Group Inc. 2004-2006 and San Francisco Chronicle 2006-2008. *2009 November - www.dqnews.com/RRCA0208.shtm
WhyBuyNow?
INTERESTRATESARELOW!o MortageLendershaveloweredinterestratestothelowestpointin50yearsbuttheyareSTARTINGTORISE!
SPECIALLOANPROGRAMSHAVEBEENCREATEDFORRENOVATIONANDREPAIRS!o FinanceRepairstobecompletedafterthecloseofescrowintoyourhomeloan.
o Loanamountsarebasedontheimprovedvalueofthehome.o Renovationcostsarespreadthroughoutthemortgageterm.o Allexpensesareincludedinasingletransaction.
8.008.509.009.50
10.0010.5011.0011.5012.0012.5013.0013.5014.00
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NATIONAL MONTHLY INTEREST RATE STATISTICS From January, 1984 to January, 2010
1/6/2010
4.004.505.005.506.006.507.007.50
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Jan 2010
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Source: www.hsh.com/natmo83.html Interest rate as of January of each year.
WhyBuyNow? CALIFORNIASPOPULATIONCONTINUESTOGROW!
o Californiahasbothhighratesofpopulationgrowthandaconstrainedsupplyofdevelopableland.
o Forthatreason,homepriceswillclimbandwewillagainexperiencealongtermimbalancebetweensupplyanddemandinthefuturehousingmarket.
OVER70%OFCALIFORNIASPOPULATIONGROWTHISDUETOBIRTHS!o Asfamiliesgrowintheirnumbers,sodotheirneedsforlargerhomes.o Marriages,employment,militarytransfers,promotions,retirementsetc.,allcontributetochangesinhousingrequirements.
HOUSINGCONSTRUCTIONSTARTSAREATTHELOWESTLEVELSINCE1955!o Asthesupplyofavailablehousingdiminishes,demandincreasesandthecyclemovesupwardinvalueandpricing.
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
POPULAT
PROJECTED POPULATION GROWTH FOR CALIFORNIA
POPULATION
0
5,000,000
10,000,000
15,000,000
20,000,000
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030
ION
YEAR
Source: U.S. Census Website of State Population Facts
7,500,0008,000,0008,500,0009,000,0009,500,000
10,000,00010,500,00011,000,00011,500,00012,000,00012,500,00013,000,00013,500,00014,000,000
SOUTHERN CALIFORNIA POPULATION GROWTH BY COUNTY From 2000-2040
RIVERSIDE COUNTY
SAN BERNARDINO COUNTY
SAN DIEGO COUNTY
LOS ANGELES COUNTY
ORANGE COUNTY
1,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,0005,500,0006,000,0006,500,0007,000,000
2000 2040
YEAR2020
Source: Institute of Urban and Regional Development, University of California, Berkeley
COMPARE RENTING TO BUYING
RENTING BUYING
1. Your future is partly controlled 1. You control your future. by your landlord. 2. The mortgage interest and real
2. You receive no federal tax benefit estate taxes are tax deductible. as a renter. 3. Rising home prices increase your
3. You may experience rapidly increasing equity position. rent payments that are hard to budget for. 4. Every month you pay down your
4. Rising rental costs may make you move loan, you are planning towards before you are ready. your retirement. 5. Any improvements you make benefits 5. A new home is NEW! You wont your landlord and not you. have large unexpected expenses. 6. Landlord may sell leaving you homeless 6. With a new home you have or little time to relocate. opportunity to select options and upgrades that suit your taste.
MONTHLY RENT 1 YEAR 5 YEARS 10YEARS 20YEARS $1,500 $18,000 $90,000 $180,000 $360,000
$1,800 $21,600 $108,000 $216,000 $432,000 $2,000 $24,000 $120,000 $240,000 $480,000
Let us show you how to make your hard earned money work for you, not
your landlord.
Purchase PriceAnnual Appreciation 5.00%
After Year 1 X 5.00% = 20,745.00$ 435,645.00$ (purchase price) (apprec factor) (estimated appreciation) (estimated Value after 1 yr)
After Year 2 X 0.00% = -$ 435,645.00$
After Year 3 X 0.00% = -$ 435,645.00$
After Year 4 X 5.00% = 21,782.25$ 457,427.25$
After Year 5 X 5.00% = 22,871.36$ 480,298.61$
After Year 6 X 5.00% = 24,014.93$ 504,313.54$
After Year 7 X 5.00% = 25,215.68$ 529,529.22$
Estimated Value After 7 years, based on historical data= 529,529.22$
Less Original Purchase Price 400,000.00$
Potential Equity Appreciation 129,529.22$
Initial Equity Investment, based on 5% down 20,000.00$
Potential Equity Gain= Appreciation + Initial Investment 149,529.22$
Potential Income Tax Savings over 7 years 53,911.07$
Initial Equity Investment + Potential Appreciation + Tax Savings 203,440.29$
Monthly Investment, inc. interest and property tax 215,644.28$
Actual Cost of Home Ownership over 7 years 12,203.99$ Not only did you live in you home for free for 7 years, you would have added
this amount to your net worth!
ESTIMATED FUTURE HOME VALUE
414,900.00$
435,645.00$
435,645.00$
414,900.00$
435,645.00$
457,427.25$
480,298.61$
504,313.54$
RENT VS OWN RENTER OWNER
MONTHLY PAYMENT $_______________ PURCHASE PRICE $______________________________
ANNUAL INCREASE $_________________ DOWN PAYMENT $______________________________ RENT
YR 1 $___________ X 12 = $_____________ LOAN AMOUNT $________________________________
YR 2 $___________ X 12 = $_____________ INT. RATE _______% TERM______________________
YR 3 $___________ X 12 = $_____________ MO. INVESTMENT $_____________________________
YR 4 $___________ X 12 = $_____________ PROP TAX ______% PER MO$____________________
YR 5 $___________ X 12 = $_____________ APPROX. TAX BENEFIT _______________________%
YR 6 $___________ X 12 = $_____________ MO SAVINGS $__________________________________ YR 7 $___________ X 12 = $_____________ PMT AFTER TAX $_______________________________
TOTAL (LOSS) $_______________________ *ESTIMATED NET MONTHLY INVESTMENT AFTER TAX. MONTHLY INVESTMENT $_______________ X 12 =
$_______________ X 7 YEARS = $__________________
**TOTAL POTENTIAL HOMEOWNER GAIN $___________________________________
ESTIMATED FUTURE HOME VALUE
PURCHASE PRICE $ ___________________________
ANNUAL APPRECIATION _____________% YR 1
