July 26, 2008
You’ve been to the beach, the farmer’s market, the park and your local library. Here are some other destinations to help alleviate midsummer kid boredom, without dropping a bundle.
1. Cabrillo Marine Aquarium: Marine exhibits, touch tanks and special events. Admission is a suggested donation of $5 for adults and $1 for kids and seniors. http://www.cabrilloaq.org
2. South Coast Botanical Garden: 87 acres of land with a collection of plants from all over the world, classes, tours, walks, and special shows. Admission is $7 for adults, $5 for students & seniors, $2.50 for children under 5. http://www.southcoastbotanicgarden.org
3. Charles H. Wilson Park: Free Little Train Rides on the first Sunday of the month. The park also has a treehouse. http://www.visittorrance.com/parks.htm
4. Madrona Marsh Preserve and Nature Center: Learn about the animal and plant species that benefit from the marsh at the Nature Center, then explore the marsh itself and see them in their natural habitat. http://www.friendsofthemadronamarsh.com
5. Pointe Vicente Interpretive Center: The 10,000 square foot center features exhibits about the natural and cultural history of the Palos Verdes Peninsula, with an emphasis on the Pacific Gray Whale. No admission fee. http://www.palosverdes.com/rpv/recreationparks
6. Roundhouse Lab & Aquarium: Native and non-native marine life, including sharks, moray eels, lobsters and octopus, on display in tanks. Free Admission. http://www.roundhouseaquarium.org
7. L.A. Maritime Museum: Exhibits include vessels, models, paintings and memorabilia of maritime life. Hands-on exhibits include knot board and amateur radio room. $3 general admission, seniors and youths 7-18 $1, children 6 and under free. http://www.lamaritimemuseum.org
8. Western Museum of Flight: Focuses on the history of the aerospace industry in Southern California, with planes from all eras on display. Admission $5, students $3. http://www.wmof.com
9. Bannning Residence Museum: Built in 1864, the restored, 23-room Greek revival mansion is the former home of Phineas Banning, who founded Wilmington. Admission is $5, $1 for children under 12. http://www.banningmuseum.org
10. Sea Aire Golf Course: Sea Aire is a very short nine-hole, par 27, pitch and putt golf course nestled in the Seaside Ranchos Neighborhood of South Torrance. http://www.ci.torrance.ca.us/Parks/10153.htm
Courtesy of the Daily Breeze Saturday, Jully 26, 2008
July 15, 2008
In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1.
For full details please follow the link to the Los Angeles County Office of the Assessor : http://assessor.lacounty.gov/extranet/guides/prop8.aspx
July 11, 2008
It’s amazing to me how many times I hear the saying, “I’d buy this house if I win the lottery this weekend!”
Back to my thoughts on how many people want the “American Dream” of owning their own home. I ususally hear this when I’m at open house on a luxury property (something in the upper million dollar range or above.) I was at 405 Via La Selva last week when I heard someone say that. Back to the 6 reasons to buy a home - pride of ownership is a big one!
July 10, 2008
Pricing today is like picking produce. Think about going to the grocery store or farmers market. If the produce is really expensive it doesn’t matter how good it looks, you’re not buying it. Pricing is the top priority in a buyer’s market. If a house is not priced properly, nothing else really matters. However, if it’s got a great a price, then it is important that it shows well - think lights, camera, staged - the produce can’t be rotting away in other words. Underpricing is something a seller can really never do…even today in this buyer’s market, a home that is grossly underpriced will get multiple offers. Maybe we should just price it for a $1 (and then I’ll take two pounds of those!)
July 6, 2008
Consumer Reports - July 2008 issue - has a good article on the 8 Benchmarks of Borrowing. Follow these guidelines to avoid falling into financial distress.
1) 20% - Add your monthly car payment, average new charges on your credit cards, & other non-mortgage debt payments. The total should be no more than 20% of your gross monthly income.
2) 28% - PITI - Your monthly mortgage payment (including property taxes and insurance) shouldn’t exceed 28% of your gross monthly income.
3) 36%-48% - Ideally, your total monthly debt payments shouldn’t exceed 36% of your gross monthly income. Many people go above 48% - which should be avioded.
4) 80% - The total amount borrowed on your first mortgage, plus any second mortgage, home-equity credit line, shouldn’t be more than 80% of the property’s value. The lower this debt-to-equity ratio, the better.
5) 6 pts. - Low introductory interest rates make Adjustable-Rate-Mortgages look affordable. Most ARM’s come w/ a lifetime cap of 6 percentage points. If you are considering an ARM, add 6 percentage points to the “teaser” rate, then calculate the monthly payments under the higher rate. That’s your worst case scenario; if the result (with taxes and insurance) exceeds 28% of gross monthly income, dump this deal.
6) 6 months - You should have enough money to cover six months of living expenses in an accessible account for emergencies. Don’t use credit lines as a substitute.
7) 36 months - Don’t take out an auto loan that exceeds 3 years. Longer term loans can leave you “upside-down” with a loan balance that’s larger than the car’s depreciated value.
650-700 points - You’re generally considered a sub-prime borrower if your FICO credit score is below 600 for auto loans and mortgages and below 700 for premium credit cards and 650 for classic cards, says John Ulzheimer, president of consumer education for Credit.com, a loan information and referral website. If your credit score falls below those thresholds, you’ll pay higher interest rates.
Article courtesy of Consumer Reports July 2008 Issue
July 5, 2008
There are 38 homes for sale as of this morning, July 5th, 2008. That’s the highest number of homes we’ve had for sale in a while. 22 of those homes have reduced their list price at least once so far as well, giving buyers have a lot ot chose from right now. There are 15 single family homes under the $1 million mark which makes for some great opportunities to get into this idyllic Hollywood Riviera neighborhood.
As yesterday was the 4th of July, one drives around the Hollywood Riviera to find themselves getting stuck in many places because so many streets were closed to thru traffic due to all the “4th of July Neighborhood Block Parties.” It’s truly a wonderful neighborhood…BBQ’s, jumpers and waterslides for the kids (and some adults too), sno-cones and cotton candy machines, kids bike parades….now this is why people want to buy a home here. This is a wonderful lifestyle.
The other 23 homes range in price from $1 million up to $2,499,000 - which gets you new construction with a roof top deck, a basement, a view, and gorgeous home on a nice tree-lined street in the upper Riviera. If you are looking for the Riviera, sure looks like now is a good time to find your dream home.
June 25, 2008
First of all, here in the South Bay you have to ask yourself, “Who doesn’t want to live here?” There are many other reasons to buy a home - here are 6 good ones!
Pride of Ownership - One of the main reasons people buy and always have bought homes is pride of ownership. Part of the “American dream is owning your own home.” Making it yours - decorating it your way, landscaping w/ your favorite plants, painting it your favorite colors, etc. Most of us grew up with our families in our “family home.”
Good Investment - Although home prices are cyclical, sometimes up, sometimes down, overall they appreciate or go up. For example, if you use the Office of Federal Housing Enterprise Oversight’s “house price calculator,” a home purchased in California in the 1st quarter of 1975 for $75,000 is worth approximately $1,017,400 in the 1st quarter of 2008. That’s not a bad savings plan since you had to live somewhere!
Tax Benefits - owning a home in the United States is looked upon favorably by our Federal government. With that said the government offers quite nice tax benefits to those who also own a mortgage. The mortgage interest you pay each month is deductible and typically the interest is the largest part of your mortgage payment - especially in the early years….when you need the most help.
Capital Gains Exclusions - (another tax benefit) - As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.
Equity Building - As you pay your mortgage, an amortizing mortgage, slowly you pay more and more of the principle off. The beginning years of an amortizing mortgage are mostly interest, as noted above, but the last part of the term is mostly principle. You are basically paying into your own bank account as every time you pay your mortgage the principle gets reduced….you can’t do that with rent. (You are helping pay down someone else’s mortgage then.)
Equity Loans - Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business.
June 22, 2008
The ultimate question “What is my home worth in today’s real estate market?” I hear it all the time and the short answer that is always true is that “Your home is worth the dollar amount equal to what someone is willing to pay for it and what you are willing to sell it for.” That number is very hard to arrive at sometimes.
Here in the South Bay we have seen a softening of the real estate market…properties taking longer to sell, prices needing to be reduced, homes needing to be staged and then kept in “showing” condition for the duration of the “marketing period.” This is no easy task.
The hardest part of this softening market is finding a price that will attract a buyer. Sellers that are looking back at what homes sold for a few months ago are looking the wrong direction. Sellers need to look forward to what will make someone pull the trigger and write that offer. We need to start seeing what Just Sold or Just went into escrow and then adjust accordingly and not equal to or above those prices…but slightly under those prices. Properties not aggressively priced are not even getting showings - so those perfectly “staged” houses are not even making a dent. This is why pricing is the number one key to getting people in your home. Of course, after they are there it must show better than the house they just saw around the corner. Buyers are looking at everything right now - they are looking for a deal. They hear words like “foreclosure, bank-owned, short sale” and think they want one of these deals. They want to be able to tell their co-workers and friends what a great deal they got.
So, you still don’t know what your home is worth - we hope we will all find out soon!
June 14, 2008
“This is a great anecdote that I’ve heard before but just had the pleasure of seeing again the other day, so I thought I’d share it.”
A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls.
He then asked the students if the jar was full. They agreed that it was. The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was.
The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else He asked once more if the jar was full. The students responded with a unanimous ‘yes.’The professor then produced two glasses of wine from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed.
‘Now,’ said the professor, as the laughter subsided, ‘I want you to recognize that this jar represents your life. The golf balls are the
important things; your family, your children, your health, your friends, and your favorite passions; things that if everything else was lost and only they remained, your life would still be full.’ The pebbles are the other things that matter like your job, your house, and your car. The sand is everything else; the small stuff. If you put the sand into the jar first,’ he continued, ‘There is no room for the pebbles or the golf balls.
The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you.Pay attention to the things that are critical to your happiness. Play with your children. Take time to get medical checkups. Take your partner out to dinner. Play another 18. Do one more run down the ski slope. There will always be time to clean the house and fix the disposal. Take care of the golf balls first; the things that really matter.
Set your priorities. The rest is just sand.
One of the students raised her hand and inquired what the wine represented. The professor smiled. I’m glad you asked. It just goes to show you that no matter how full your life may seem, there’ s always room for a couple
of glasses of wine with a friend.
When things in your life seem almost too much to handle, when 24 hours in a day are not enough, remember the mayonnaise jar and the 2 glasses of wine.
June 4, 2008
Here were are and it’s already June 4th. Summer is a few weeks away and many buyers are getting itchy in today’s market to make a play. But is there anything “affordable” out there right now? Let’s take a look at what’s for sale in the general Riviera/South Torrance/South Redondo Beach areas?
Hollywood Riviera (Area 128) - Under $700,000
The Riviera boasts 5 properties under the $700K mark - one single family home located on Pacific Coast Highway (the service street) and it’s listed for $689K and has 1132 sq ft, 3 beds/3 baths. There is one townhouse in the Village Palos Verdes complex (AKA - the “Brown Townhouses”.) It’s a nice looking, clean, end unit w/ a view too - for $699K. And last but not least, there are 3 condos - all located in the “Cote D’Azur” complex which is located right on the border between Palos Verdes and the Riviera. They range in price from $540K - $599K (there are other units for sale in that complex as well that are more expensive - typically those units are completely remodeled and/or have terrific views!) The complex itself offers a large pool, putting green area, underground parking areas, a private walk down to the Torrance…R.A.T. Beach. It sits on the bluff above the beach there..it’s quite a lovely location.
South Torrance/Seaside Ranchos Areas (Area 129) -under $700,000
In the Seaside Ranchos neighborhood there are 10 single family homes for sale under the $700K mark - a few of them are on Anza, a cute small one on Linda Drive and a few others. 2 townhouses - one for only $519,000 and has 3 bedrooms & 3 bathrooms. The other is newer construction - 1999 - and is listed for $670K. There are 5 condos in the South Torrance/Seaside area for sale all under $599,000.
South Redondo Beach (Areas 155-157) - Under $700,000
South Redondo Beach holds quite a bit of inventory under $700,000 - a total of 42 properties: 4 single family homes: $579K for a 1 bedroom/1 bathroom to a $699,000 2/1 on Sierra Vista. 6 townhouses range from $615K - $679K for a cute remodeled unit off of Opal. The condo market holds quite a bit to choose from - 32 condos that range from $329K for a 1 bedroom/1 bathroom over in Brookside Village to a nicely updated 2 bedroom condo at Catalina & Torrance Blvd for $685,000.
