How's the Real Estate Market??

The Real Estate World --- Is a multi-headed Serpent
Five part series

The question “How’s the Real Estate Market?”
has no simple way of describing all the factors that contribute to the volatility for this segment of our economy. From Banking, its regulations and lack thereof, politics, lobbyists, developers, local planning dept’s., and on and on. Only addressing the areas that are directly related, I will give it a go though!

We will start with the . . .
Investors/buyers.
This ranges from the single individual with mega cash to invest hence no credit score issues, to the two income couple with three children struggling to get into their first home on a hope and a prayer.

Where you are in this spectrum, determines the ease in accomplishing your goal and which directions you can take.

If you are in the “Cash Flush” Investor category, you can literally track foreclosures, show up on the courthouse steps and plunk down the cash on all kinds of bargains, I have watched, it is - stunning! The great deals are out there and are being snapped up. This is how the bulk of the sales of existing homes is happening now and with the ‘flipping regulation’ just having been removed, it is an investors game right now.

But if you are like the rest of us, the all important credit score dictates the next steps - which I will go into as we proceed. Hence many twists and turns.

The most important thing to learn is ‘Cash is King’. Even though you prove to the banks you are an excellent candidate for a loan, right now the purse strings are very tight even though they have been loaned ‘our money’! We could go around all day about the why’s of this but my sincere opinion is further trouble ahead with what is be designed in Washington and the ‘Banks’ don’t want to be the ones at the table that can’t find a chair when the music stops.

The BEST thing you can do is work with an experienced reputable Real Estate Broker and Mortgage Broker! Ones that have been through many of the historic cycles and are up-to-speed on the “latest” with what entities are offering the BEST package and the latest regulations being issues by the Administration. This is changing at a rapid pace and keeps those not professionals in the business, ‘off balance’
and causes unnecessary complications for professionals -
is this the ‘Change’ we were Hoping for??
(to be continued)

Anti-Flipping rule temporarily on hold

In case you hadn't seen it anywhere else on my sites, this is a real boon to investors.

The Federal Housing Administration will place a one-year moratorium on its anti-flipping rule, which will allow buyers with FHA-backed loans to purchase homes that have been held for less than 90 days. This could be temporary according to HUD, but hopefully when inventory appears we can help our clients have a better opportunity to purchase. The waiver will go into effect on February 1, 2010.
For more info http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/01/19/BUR51BKBUO.DTL

Charmed for Lunch in Capitola

http://www.bloomsburytearoom.com/

The Bloomsbury Tea Room

Well worth the investigation! Great food,service and ambiance!
After a couple attempts to try this little gem we succeeded. Even though a couple of trees were down and we sauntered through our rare rain storms.

The charming decor, the charming wait staff and owner and the food was delicate, delicious and perfect for an afternoon of dallying around.
I have always loved Capitola, lived here, worked here and now relish finds like this that keep it on my constant path.
This is locally owned, staffed and all components are fresh made.
You won't be disappointed - You Will Be Charmed!

Energized Santa Cruz

This is the Santa Cruz I remember growing up! Windy, wild, energized.
The way one feels in a short time in this town. So much to see, do, accomplish and so much fun getting there.
Come along and enjoy the ride.

Santa Cruz's Perfect Garden conditions

One of the greatest activities to be involved in, is Gardening! Or if you are really a devotee farming!
It revives the soul, makes one realize the basics of life and allows you to connect with a higher power.
While in the garden you not only see the beauty of nature, visit with all sorts or creatures but you get dirty and feel so good about it. The smells, tastes, textures of all you are around is invigorating and reminds you of what is really important and the cycle of life.
Don't pass up taking care of the earth and providing for the growth of something in what ever degree or fashion you can. Containers, strips around your condo, house or a section of your property. To tend the land, reap from it and share your labor whether it be edibles or flowers is such a gift.
Plant those seeds, tend the soil and spend time watching nature take root and develope into some of the most incredible creations.

Don't waste time thinking about it, the rains will soon be here and thats the best start to a gardens life.

The cabin at the lake

Once you come here its hard to leave!

Still some benefits to moving!

With the latest revision for Homebuyers, read up on the changes that make it attractive to make that move.

New $6,500 federal tax credit for “move-up” home buyers may benefit you

The federal government recently extended and expanded the federal tax credit for home buyers. The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.



MAKING SENSE OF THE STORY FOR CONSUMERS

Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.

The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill. Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.

The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000. Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.

Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence. Second homes and investment properties are not eligible.

Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. All home buyers should talk to a tax advisor regarding timing decisions.