Why Buy Now? 
Because “Real Life Isn’t A Game.” 
                                                                         ...
“Why Buy Now?” 
   • HOMES ARE SELLING!  
       o 35,860 New and Resale houses and condos were sold in California in 
   ...
CALIFORNIA MEDIAN HOME SALES PRICE
                                                 December 1968 - November 2009


      ...
“Why Buy Now?” 
 

    • INTEREST RATES ARE LOW !  
        o Mortage Lenders have lowered interest rates to the lowest po...
NATIONAL MONTHLY INTEREST RATE STATISTICS
                                                                      From Janua...
“Why Buy Now?” 
• CALIFORNIA’S POPULATION CONTINUES TO GROW!  
    o California has both high rates of population growth a...
PROJECTED POPULATION GROWTH FOR CALIFORNIA


    50,000,000


    45,000,000


    40,000,000


P   35,000,000
O
P   30,00...
SOUTHERN CALIFORNIA POPULATION GROWTH BY COUNTY
                              From 2000-2040


14,000,000
13,500,000
13,00...
COMPARE RENTING TO BUYING


              RENTING                                            BUYING
              1. Your ...
ESTIMATED FUTURE HOME VALUE

Purchase Price          $     414,900.00
Annual Appreciation         5.00%


After Year 1    ...
RENT VS OWN

            RENTER                                  OWNER
MONTHLY PAYMENT $_______________            PURCHAS...
ESTIMATED FUTURE HOME VALUE

PURCHASE PRICE $ ___________________________

ANNUAL APPRECIATION _____________%

YR 1 $_____...
Rers Why Buy Now 1 6 10
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Reasons to Buy Now!

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Rers Why Buy Now 1 6 10

  1. 1. Why Buy Now?  Because “Real Life Isn’t A Game.”                                              “Real Life” is about “Real Decisions”            and “Real Financial Opportunities.”   Real Estate Resource Services can  show you how take advantage of the current  real estate market and get you on the way to  your new home. 
  2. 2. “Why Buy Now?”  • HOMES ARE SELLING!   o 35,860 New and Resale houses and condos were sold in California in  the month of November 2009, down 13.1% from October and up  11.5% from 32,163 from November 2008.     • HOMES ARE NOW AFFORDABLE!    o The median price paid for a home in November was $261,000, up 1.6%  from $258,000 in November 2008. The year‐over‐year increase was  the first since July 2007 when the $478,000 median was up 0.8  percent from $474,000 a year earlier.  o  • PAYMENTS ARE LOW!   o The typical mortgage payment that home buyers committed  themselves to paying last month was $1,106, 58.1% below the current  cycle's peak in June 2006.   Source: MDA DataQuick Information Systems. All rights reserved.  
  3. 3. CALIFORNIA MEDIAN HOME SALES PRICE December 1968 - November 2009 $550,000 $530,000 $510,000 $490,000 $470,000 $450,000 $430,000 $410,000 $390,000 $370,000 $350,000 ALES PRICE $330,000 $310,000 $290,000 $270,000 $250,000 , SA $230,000 $210,000 $190,000 $170,000 $150,000 $130,000 $110,000 $90,000 $70,000 $50,000 $30,000 $10,000 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 YEAR Source: Empire Real Estate Group Inc. 2004-2006 and San Francisco Chronicle 2006-2008. *2009 November - www.dqnews.com/RRCA0208.shtm
  4. 4. “Why Buy Now?”    • INTEREST RATES ARE LOW !   o Mortage Lenders have lowered interest rates to the lowest point in 50  years but they are STARTING TO RISE!    • SPECIAL LOAN PROGRAMS HAVE BEEN CREATED FOR RENOVATION AND  REPAIRS!    o “Finance Repairs” to be completed after the close of escrow into your  home loan.   o Loan amounts are based on the improved value of the home.  o Renovation costs are spread throughout the mortgage term.  o All expenses are included in a single transaction. 
  5. 5. NATIONAL MONTHLY INTEREST RATE STATISTICS From January, 1984 to January, 2010 14.00 13.50 13.00 12.50 12.00 11.50 11.00 10.50 INTEREST RATE 10.00 9.50 9.00 8.50 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 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 YEAR Source: www.hsh.com/natmo83.html Interest rate as of January of each year. 1/6/2010
  6. 6. “Why Buy Now?”  • CALIFORNIA’S POPULATION CONTINUES TO GROW!   o California has both high rates of population growth and a constrained  supply of developable land.  o For that reason, home prices will climb and we will again experience a  long‐term imbalance between supply and demand in the future  housing market.  • OVER 70% OF CALIFORNIA’S POPULATION GROWTH IS DUE TO BIRTHS!  o As families grow in their numbers, so do their needs for larger homes.  o Marriages, employment, military transfers, promotions, retirements  etc., all contribute to changes in housing requirements.  • HOUSING CONSTRUCTION STARTS ARE AT THE LOWEST LEVEL SINCE  1955!  o As the supply of available housing diminishes, demand increases and  the cycle moves upward in value and pricing.    
  7. 7. PROJECTED POPULATION GROWTH FOR CALIFORNIA 50,000,000 45,000,000 40,000,000 P 35,000,000 O P 30,000,000 U L 25,000,000 POPULATION A T I 20,000,000 O N 15,000,000 10,000,000 5,000,000 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 YEAR Source: U.S. Census Website of State Population Facts
  8. 8. SOUTHERN CALIFORNIA POPULATION GROWTH BY COUNTY From 2000-2040 14,000,000 13,500,000 13,000,000 12,500,000 12,000,000 11,500,000 11,000,000 RIVERSIDE COUNTY 10,500,000 SAN BERNARDINO COUNTY 10,000,000 SAN DIEGO COUNTY 9,500,000 LOS ANGELES COUNTY 9,000,000 8,500,000 ORANGE COUNTY 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 2000 2020 2040 YEAR Source: Institute of Urban and Regional Development, University of California, Berkeley
  9. 9. 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 won’t 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.
  10. 10. ESTIMATED FUTURE HOME VALUE Purchase Price $ 414,900.00 Annual Appreciation 5.00% After Year 1 $ 414,900.00 X 5.00% = $ 20,745.00 $ 435,645.00 (purchase price) (apprec factor) (estimated appreciation) (estimated Value after 1 yr) After Year 2 $ 435,645.00 X 0.00% = $ - $ 435,645.00 After Year 3 $ 435,645.00 X 0.00% = $ - $ 435,645.00 After Year 4 $ 435,645.00 X 5.00% = $ 21,782.25 $ 457,427.25 After Year 5 $ 457,427.25 X 5.00% = $ 22,871.36 $ 480,298.61 After Year 6 $ 480,298.61 X 5.00% = $ 24,014.93 $ 504,313.54 After Year 7 $ 504,313.54 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!
  11. 11. 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 $___________________________________
  12. 12. ESTIMATED FUTURE HOME VALUE PURCHASE PRICE $ ___________________________ ANNUAL APPRECIATION _____________% YR 1 $_____________________ X__________% = $______________________________ (PURCHASE PRICE) (APPREC) (ESTIMATED VALUE) YR 2 $ ____________________ X __________ % = $______________________________ YR 3 $ ____________________ X __________ % = $______________________________ YR 4 $ ____________________ X __________ % = $______________________________ YR 5 $ ____________________ X __________ % = $______________________________ YR 6 $ ____________________ X __________ % = $______________________________ YR 7 $ ____________________ X __________ % = $______________________________ ESTIMATED VALUE AFTER _______ YEARS = $ ______________________________ PLUS DOWN PAYMENT AND IMPROVEMENTS $_____________________________ TOTAL ESTIMATED VALUE AFTER _____YRS = $_____________________________ ESTIMATED VALUE $_________________________________ LESS PURCHASE PRICE $______________________________ TOTAL POTENTIAL GAIN $____________________________ *ESTIMATED MONTHLY NET INVESTMENT IS CALCULATED BY SUBTRACTING THE MONTHLY TAX SAVINGS AND ADDING ANY FEES SUCH AS HOA, MELLO ROOS, ETC. **TOTAL POTENTIAL GAIN IS CALCULATED BY SUBTRACTING THE PURCHASE PRICE FROM THE ESTIMATED VALUE.

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