A Free Family Affair

Another beautiful day was spent at the Emma Prursh Park in Downtown San Jose this past Saturday for their annual Harvest Time Festival.  The event was free and had so many wonderful things to experience for all ages.  If you’re wondering where is Emma Prursh Park is, you need not travel too far – it sits between 280/680 and 101 freeways at 647 South King Road, an unlikely place to see a historic landmark and open fields that house many of the 4H’s animals and is also home to a community of gardeners and friends of mother earth.  Those attending could buy from the farm’s bountiful of crops that had been harvested, as well as purchase sweet local honey,which helps build up  immune systems for those who suffer during allergy season.  The society that maintains the 5 acre parcel all year round with the help of many of San Jose’s local schools and families teach the children the origin of where the food they eat comes from which is awesome to the little ones to be in touch with how things work and also come to appreciate the food on their plate.  

The really special part  of the festival to me and to my son was the music and dancing, especially the Aztec Dancers and drummers.  With their elaborate feathers and costumes they called to the four winds and welcomed the fall and winter months with a prayer for good tidings to all of San Jose.  I was touched by this because it reminded me of a Thanksgiving time (before it was known as that), when strangers got together to share their sense of community and culture with others.  When as humans we were open to new ideas and we all felt the sense that we belonged to a higher power no matter where we came from.  The Harvest Time at Emma Prursh Park was not Thanksgiving related – but I couldn’t help think of my Native American friends and my own family and how we all have come so far and have given up so much to feel apart of something greater.   It was a very cool and wonderful experience that I was happy to share with my son.  In fact, if he could talk sentences, (he’s not quite two) he’d tell you how he loved to stomp his feet in unison with the dancers, and how much fun it was petting all the farm animals, well except for the giant goose; he was staring my son down as if he was a corn on the Cob. meant for him!  A bit intimidating but that’s probably because the goose was so much larger than he is. 

Including the many animals that live there and the crops, there was plenty to do this day including seeing a few of the local 4H clubs that brought their prized pets to share.  Also, the park has a huge playground, and at this event they gave pony rides, had a pumpkin patch you could run through, also there were many art activities for kids to do, free and the freshest tasting pressed apple juice that was out of this world good, cooking demonstrations, hay tractor rides, a guided park tour, lasso competition for kids, and many different things to taste and eat, including homemade tamales, and enormous famous Purple Heart hot dogs which their proceeds goes to help aid our veterans. 

All in all it was a nice day to welcome in the fall and feel a sense of community in the middle of bustling busy downtown San Jose.   Thank-you Prusch Park for giving us something free and fun to experience! 

  http://www.pruschfarmpark.org/news/news.htm

A few quick truths about real estate: speculatively speaking

 Wages drive real estate prices over time.  Currently the income to home value is way out of whack, and until this Valley can earn more money, prices are not going anywhere.  Simply to buy a $650,000 home in San Jose one or more individuals must make $120,000+ every year and have a good start of about $30,000 in savings as a down payment and for closing costs. Yes there are creative financing incentives and you could pay more of an interest rate but why would you want to?  The truth had always been fixed rates are the safer bet.  It’s best to know how much each month is going to be going out as your expenses, don’t be tied to anything except balancing your checkbook and keeping track of your progress, this really does help you plan for the unexpected. 

When Berneake first took office he stated, “The last 10 years we’ve lowered interest rates, the next 10 will be about raising them”.  Lowering the interest rate weakens the dollar, which is the worst thing to do when inflation is on the rise and the price of commodities are up.  Since outsourcing is still on the tip of the employers tongue and with progressive emerging markets happening internationally.  We must improve the strength of the dollar around the world before it can come back and help us at home.  For more Basic economics 101 lessons visit http://www.RobBlack.com for more hot topics in investing.

When you do buy real estate, plan on staying in that commodity for 5-10 years in that property, entrusting that you can pay for it.  Remember real estate was never an investment where you could double your money – its never been a smart get rich quick scheme, (By the way getting rich quick has never turned out as a good thing, one truly can not learn the lesson without fully experiencing it). 

Think of it this way, you must diversify your portfolio, think long-term, dollar cost average, and be hungry for constantly educating yourself with sound proven financial advice.  Take a course at a city college, gear yourself to save more than 10% of every paycheck earned.  Grow your money by having it work for you, read until your eyes pop out of your head.    

Thanks for reading my blog by the way…

Last note to lighten up the mood;  If Bush decides to bail out the foreclosure mortgage market, it will help push prices up here in the Bay Area  by about 10%. If you’ve been savvy and have made some money for that second home you’ve been dreaming big about, consider investing into the Tahoe &/or Hawaii real estate housing markets.  These luxury markets hold, they’re also closer to home and not dependent on International law and order.    If you’re really adventurous and you need a more international flair to your portfolio, try the next big and upcoming area to sight-see, Panama. Try not to invest in areas where people have already gone, invest in areas  where everyone is planning on going. Now go dream big and take a trip; you’ll get more done for yourself before leaving on vacation than you would have by doing the same routine everyday.  Deadlines and destinations are life’s greatest trail markers.

Suggested Reading For The Wanna-Be Savvy Financial People

One of my insprirations is Rob Black and Your Money show, airs weekdays at 10 a.m. on Kron 4 channel.  His straight up advice and candid suggestions makes those who listen to him on a daily basis stand up, take heed in their financial future, and start thinking for themselves.  It’s the one of those live call in shows that you get to ask about your money matters, but be quick about it, Rob prefers those who has at least read one if not more of Ric Edelman books to be on board with his progressive way of thinking.  Check out his other list of must reads:  http://www.robblack.com/development/store.htm At his site www.RobBlack.com view past shows as a PodCast and learn more about his free investment seminars – and don’t worry he’s not selling you anything.  Just taking on, as his personal mission, educating the Bay Area to be more savvy and be healthy financially because we all know “one truly can’t help those without helping himself”.  In my opinion that’s probably what motivates Rob to get up and do what he does best, perhaps his main objective with his loyal 40,000 listeners – it’s easy to steer people in the direction of his way of thinking financially when given a half hour televised show weekly.   I’m sure it helps this  poor kids bottom line and  plays up his stocks sometimes.   Anyhow, don’t miss it,  if anything he’s got his thumb on the pulse of what is happening in our Silicon Valley market and also on those companies, many in our greater Bay Area, that are making money and affecting the world outside our Silicon Valley bubble.   

Happy Reading!

Insurance, Are you Covered Adequetly?

In an August 24th cnnMoney.com article columnist Gerri Willis says “There are a lot of events that a typical home insurance policy don’t cover.” She mentions a family that lost its home to a storm induced mudslide and says, “You may wonder why something like this isn’t covered by insurance. … But in fact, there are a lot of events that insurance doesn’t cover. Typical homeowner policies do not cover floods, earthquakes, mudslides, sinkholes, war or nuclear accidents. In the case of mudslides, you may be covered if you have flood insurance. But a flood policy will not cover damage if a hillside becomes saturated as a result of rainfall and slowly begins to move. That’s considered earth movement.” See the article for further discussion and suggestions.

Ever wonder if the homeowners insurance policy you purchased or your about to purchase is enough in case of a disaster? Know the difference between appraised value and market value.

Christina Stubler with LGS Insurance Services agreed to be interviewed to help you with this important decision.   Her number:  408-395-9800  License 0788196  visit: www.lgsis.com for more details or questions.

Seniors Pack Your Bags

Something to consider:
Look up Proposition 90 (it’s a tax law). This measure gives each county the option to allow seniors (defined as anyone over the age of 55) who move from another county to continue to pay property taxes at the rate they were paying on their previous home. This provides seniors an incentive to enter the real estate market because under Proposition 13 they would otherwise have a property tax rate based on the current market value of their newly purchased home, which is usually going to translate into significantly higher property taxes.

Only a few counties will allow you to do this, they are as follows:
Alameda
Kern
Los Angeles
Modoc
Orange
Monterey
San Mateo
San Diego
Santa Clara
Ventura

I don’t know if there are any towns/cities in these counties that you would consider. It would take some research by you, it’s best if you could visit these areas, and upon deciding your soon-to-be new neighborhood,  call me to check into home sale prices for you. It’s a start, I hope the help from me and the collective information in our blog can help you accomplish a smooth move .   

Move Over Kermit, San Jose Is Green Too

We have all heard about the problems of global warming, greenhouse gases, carbon emissions, and the high price of gasoline, which has provided an economic incentive to increase our energy efficiency and seek alternative sources of energy in every aspect of our lives. Pretending that environmental problems don’t exist, or just running away from them, won’t solve them. The scientific evidence of this growing threat is clear, and it has challenged us to consider the social and moral responsibility we share as stewards of a sustainable environment. Fortunately, the innovative spirit of Silicon Valley is hard at work at solving the crisis. Thanks to the many creative thinkers and the latest technology boom since the Internet. San Jose and the Bay Area is carving the way to win the title of being the Greenest City in America. I’d like to think it is possible for other cities to use us as their role models. We did it once before, right?

So you say you want to do what’s best for the environment, but often you don’t know where to start. And you don’t know what impact your efforts will have, or how much they will cost. I do believe you want to lessen the load you put on the earth, that you want to reduce global warming, and you want to live in a green home. Luckily we live in such a place where the very subject is being brought to life with new technology that will help us be a model for other cities to follow. Mike Honda and a distinguished panel of experts will share with us their expertise on alternative energy sources, carbon reduction and offsets, making your home more energy efficient, and more. In addition to Mike Honda’s Town Hall meetings, he will also be hosting a forum on “Green Living.” To learn about current and upcoming solutions that will allow us to live in a more environmentally friendly and energy efficient way. The panel will also help you understand the environmental benefits and economic trade-offs of your choices and how to make an impact starting with one home at a time.

When: Thursday, August 30, 9-11.30 AM

Where: West Valley Branch Library, 1243 San Tomas Aquino Rd., San José, CA

Two of the many speakers worth hearing:

Jeff Oberdorfer – Executive Director, First Community Housing Jeff will be illustrating three green affordable housing projects in the area.

Paseo Studios SRO, (right around the block from the forum location, at Westgate Shopping Center),Murphy Ranch Family Housing in Morgan Hill,

and recently completed, Gish Family Apartments in San Jose.

Also a noted speaker, Dr. Max Sherman – Group Leader, Energy Performance of Buildings Group, Lawrence Berkeley National LabsDr. Sherman will discuss home energy efficiency and indoor air quality, highlighting different things people can do in their own home to have healthier and less energy consuming houses.

I’m writing and sharing this because I feel that as a community if we start by paying a much closer attention to the resources we use, and we examine our usage and its entirety, we should analyze every opportunity to improve our approach and lessen our impact. This in-depth analysis can also provide us with the opportunity to bring these issues into the limelight, making them a part of our community’s ongoing dialog, and fostering environmental awareness in our day-to-day thinking, decisions and actions. And, very simply, blogging and expressing your concerns and solutions is a powerful way to communicate, to share, and to inspire – and it would be irresponsible to waste an opportunity to bring focus to one of the most critical issues we face. I believe that utilizing small potential solutions into each and every home of the residents in this Valley has a chance to make an impact. I’d like to read your comments about the changes, however small, that you’ve made to make a difference. Help inspire others and help our city win that official title that even Kermit is envious of.

 

http://mikehonda.blogspot.com/

 

Secrets To A Fast Close

 

The day you close on your new home is the first day of a new chapter in your life!  Why not start that chapter off right with a smooth and pain-free closing?  There is much to the process that can significantly impact the ease of closing, that a buyer or seller does not see.  In this post, I will outline the key things you need to know, and what you should expect, for a pain-free and easy real estate transaction. Contingencies – the sale of any home may include specific contract contingencies such as the buyer receiving financing, selling their current home, or a home inspection.  These conditions must be removed or waived before the sale can close.  You can ensure that the process goes smoothly by working aggressively to see that all of these items are completed as early as possible. Appraisal and Title Reports – completion of an appraisal to ensure the fair market value of the home and a title search to ensure clear title to the property must always be completed prior to closing. Closing Documents – typically a real estate attorney prepares documents that detail all of the transaction items.  Occasionally, this is done by outside service companies as well. Closings – closing generally takes place at an attorney’s office or at the office of the mortgage provider.  This is the acceptance of terms of sale by both parties and initiates the transfer of funds.  The final sale is actually complete; however, when funds are transferred and the deed recorded. A professional realtor like myself ensures a speedy and predictable closing by anticipating and resolving any potential issues in this process.  As an additional servic, I can offer you consulation in home-staging, organization, and minor home prep care to help you move into your new home.  Please contact me for more information about how I can ensure that your finding and closing upon a home goes smoothly. 

Visit http://www.amberlists.com/search/index.cfm?next=+IwwFqAoDMwDaDni5xzmAwww/  for a detailed web site chalk full of information and a handy search box for your questions. 

Back Up and Read On about the New Reverse Mortgage

For those who are 60 and older, you may already be familiar with the HUD insured FHA adjustable rate reverse mortgage products that have been around for a while.  New statistic claim states 68% of baby boomers plan to use their home equity for their retirement income.  This ideal consumer now has a choice when it comes to Reverse Mortgages.  The original R.M. product and the new Jumbo Reverse Mortgage program; both are presumably the same, except the J.R.M’s don’t have the limits like government funded secured reverse mortgages.  The new J.R.M. is owned by banks, mortgage companies, and private companies and they are not a federally backed security.  However, they offer for the first time a new fixed rate mortgage, some offer the loan with no closing costs, as well as  some offer a guarantee of a growth rate of 9% on the line of credit annually.  A product that is ideal for those baby boomers that are already in a reverse mortgage, and would like to refinance out of the adjustable rate to a fixed one.  The other big advantage of using a J.R.M is that it locks in your home’s equity value at current market prices.  This could potentially help those who plan on retiring soon, secure their futures in our current declining market, and (remember it’s harder to get a loan with no job, the downside to retiring).  If you are turning 62 this upcoming year, it pays to look into a reverse mortgage.  It allows you to plan for emergencies or have the money handy for that long-waited trip that’s been calling you.  Tap into your equity without having to sell your home and move.  If you do not need the money right away, no worries, lock in on the price of your home now and earn a growth of up to 9%.   Contact your favorite mortgage broker or anyone of us, The Super Uber-Bloggers at Coldwell Banker’s New RealEstateCompass.com   For another link to explain the Reverse Mortgage Loan Blog » Top 10 Reverse Mortgage Myths Dispelled at  http://reversemortgageloanblog.com/2007/09/12/top-10-reverse-mortgage-myths-dispelled/And also check out:  http://reversemortgagedaily.com/2007/05/28/non-fha-approved-brokers-able-to-originate-jumbo-reverse-mortgages/Andhttp://reversemortgagedaily.wordpress.com/2007/01/29/more-jumbo-reverse-mortgage-products-coming-soon/

What’s A Normal Market?!

Wow what a ride it’s been…The latest reports from National Association of Realtors index of signed purchase agreements state resale homes have plunged down 12% in July; the most since records began in 2001.  This is 5% worse than the media’s economic forecast projection. The cause, many mortgage commitments were not able to perform at the closing last minute, and buyers fell out of contract at the 11th hour.  Ironically the same index reported last month that buyers in contract were up 5% in June.  It goes to show media i.e. what we watch and what we hear, does impact our financial futures.  We all know, misery loves company and that bad news sells more newspapers and gets more of us to watch.  Least no one is jumping out of buildings, yet.

 I must get asked at least four times a day my take on what is happening in the real estate market.  Well, all people need a roof over their head to sleep well, right?  And, people need to move in either rain or shine, and in good times and in bad times.  Those entrenched in the real estate market for over 20 years know, this too shall pass.  It’s bad news if you bought within the last two years under a sub-prime loan.  It’s bad news if you need to sell and have owned your home for less than four years.  However, there are those who are weathering this storm and even profiting from it.  The news is not showing that the higher end market is moving, a.k.a. “the rich” know to cash in on a downturn.  As the old saying goes “A true investor doesn’t wait for the very bottom to buy or the very top to sell”  Another motto that gets slung around, “If you want to be rich, do the exact opposite of what the majority is doing”, meaning the better time to buy is when the market goes down! 

Remember 1987?  When interest rates shot up from 8-9% to over 22% overnight – literally flattening the housing market for almost 10 years. Ironically, we had an oil crisis going on back then too.  Once it rebound in the early 90’s, we had a surplus in our budget, and the economy and stocks were doing great with the birth of the dot.com industry.  1% interest rate loans stimulated a lot of risk taking in the real estate market and helped those buy homes who couldn’t normally afford to.  It also fueled a very speculative market, one that we may never see again. (The, been there done that syndrome).   Us as agents had to be so aggressive and competitive in a raging sellers market for so long that we seem to forget what a normal market feels like.  So again, the question needs to be asked, what is a normal housing market for the Bay Area? 

Before the crazed days of too low of homes for sale as inventory, before the 1-4% interest rate loan products to fuel the economy, and before the creative sub-prime loans to make everyone’s dream to own a house a reality – a normal market was 5000 homes on the market at any given time.  It used to take 2-4 months from listing your home to closing escrow.  Last week we were running at 4700 for Santa Clara County. 4% of those listed accounted for the foreclosure market.  It takes 40-90 days to sell a property when it’s priced right.  It feels all too familar to me…

The economic forecasters (Which to me are like weather news broadcasters, they get paid to point and project, never being held accountable for any of  their predictions, or for their scare-tactics), these forecasters predict that by the early part of 2008 this valley foreclosure rate will rise to 10%.  Good news is we shall see the sub-prime fallout lighten by the mid 2009 timeframe.  It will be a much slower and gradual climb the next time around though.  Don’t think you’ll double your money in real estate either, it’s rare that we’ll ever repeat such a speculative market again, especially now with the harder, tighter lending restrictions and with interest rates going up.  I’ll be happy to make another huge profit in 5-10 years once this cycle works itself out or the American people forget. 

Bookmark my blog and log back in for my educated opinion on the best places to buy into in every price range and another cool article about what a million dollars get you in San Jose. 

For Further answers to your questions, link to:     http://www.amberlists.com/buying/index.cfm?page_ID=3524&TopicId=buy&SubTopicId=Appraisal

Heat Map and Price Evaluation For the San Jose, CA Area

http://www.trulia.com/home_prices/California/San_Jose-heat_map/

My Weekly Update Of The Best Homes Available For Sale as of June 29th, 2007

If your shopping for a home in the South San Jose, along the Santa Teresa Foothills in areas of Santa Teresa, Blossom Valley, Cambrian, and Almaden Valley. 

Here is AmberLists.com personal picks of the week for 6/29/07.  Each property is a choice location, brand new on market and is soft on price!  I have more details if interested.  Just comment back.

7202 Golf Course Lane

7202 Chantilley Ct

293 N. Creek Drive

179 Sprucemont

6296 Tillamook Drive

5932 Hillview Ave

2250 Dry Creek Ct

1734 Hallmark Lane

733 Hathaway Ct.

4860 Birmingham Drive

1087 Scarletta Lane

7074 Webb Canyon Drive

6258 Calle Bonita

6590 Stonehill Drive