Public Policy "NEWS"

The right answer will depend on your circumstances, but some factors play a role in deciding which way to go. Today's record-low mortgage rates are giving consumers the choice of two great options -- 30-year mortgages that charge just over 4% interest or 15-year loans with rates nearly down to 3%. The first thing to look at is the difference in monthly payments between a 15-year mortgage and a 30-year loan of the same size. You want to look at what that 15-year payment will be and decide if you can handle it. If you can't, that will decide it. Fifteen-year mortgages do charge lower interest rates than 30-year loans -- but carry higher monthly payments because you have to pay all principal back in half the time.  For example, borrowing $300,000 for 15 years at 3.25% average rate means you'll have a $2,108 monthly mortgage payment (excluding the effect of any origination fees). That's nearly 50% higher than the $1,441 you'd pay if you take out the s

Think you know everything there is to know about the Property Brothers ? Read on to find out if you're as much of an expert on Drew and Jonathan Scott as you thought. The brothers bought their first house when they were only 17 years old! In college, they didn’t waste any time before flipping a house for a $50,000 profit. They own Scott Brothers Entertainment with their older brother, JD. When he’s not impressing home buyers with his amazing finds, Drew’s passionate about directing and producing. Because of their Scottish heritage, Drew and Jonathan were competitive bagpipers as children. Jonathan claims to have taken home all the medals. We knew they were a hilarious duo on the  Property Brothers , but did you know that Drew and Jonathan Scott have their own sketch comedy group? If you’re lucky, you might even see them doing stand-up. They grew up on a ranch in Vancouver, Canada, and started riding horses by the time they were 3 years old. Drew is in a r

L.A. housing is expensive, sure. But are you paying too much for your rental?  It would be reasonable to expect that the increases we’ve seen in rents and purchase prices in recent years would be roughly proportional throughout Los Angeles, but this is not the case. In actuality, purchase prices can soar while rents remain stable, and vice versa—even within the same neighborhood. We used standard 28 percent "front-end" debt ratios and a 20 percent down payment subtracted from the NAR’s median-home-price data to arrive at our figures. We've incorporated available information on property taxes and homeowner’s insurance costs to more accurately reflect the income needed in a given market. Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead.  The housing market is overheating and you can sense it when you

Ask The Agent: What Is Your Best Advice For Folks Looking For A New Home? Pick Your  New Home: here The real estate market can be difficult to navigate. How can you know if it’s a good time to buy? What should you be looking for in a home? Well, if you’re thinking about buying a home, send me an email .  “If you find a place that feels like home, buy it without delay. Good homes in good condition are selling quickly, so you want to get your home before someone else does.”

To understand why Proposition 13 is fair, one must understand how it works. Proposition 13 curbs property taxes by restricting the maximum rate (1%) and, more important, by limiting increases in assessed valuation (2% annually). With the latter provision, it is easy to see how a home’s current value can greatly exceed it’s taxable value over a span of just a few years. The substantial difference between a property’s actual value and its taxable value disappears when the property changes hands. When this occurs, county assessors reassess the property at full market value. Thus, recent purchasers derive no immediate benefit from the limitation on annual increases in taxable value. Shortly after Proposition 13’s adoption by the voters in 1978, the California Supreme Court recognized its inherent fairness. Justice Frank K. Richardson, speaking for a nearly unanimous court, concluded that “an acquisition value system…may operate on a fairer basis than a current value approa

The notion "creditworthiness" can be defined as a presumed ability to meet agreed deadlines related to repaying the credit and the interest accrued without affecting the vitality of the borrower, i.e. the repayment process should be based on the income received in the process of the borrower's usual activity, without affecting adversely his/her financial situation or financial results as well as other business entities. An important point in conducting the credit activity is the thorough analysis of the business activity and the income received in this business activity is taken as a fulcrum. It is necessary that a number of conditions be observed, namely: The credit extended as an absolute value should meet the real needs of the borrower; ƒThe credit period should correspond exactly to the circulation speed of the resources for the securing of which it has been extended; ƒThe profitability of the borrower's business activity should entirely cover the c

Personal retirement funds, like those held in self-directed IRAs, are an often overlooked source of capital because most investors (and real estate pros) do not know it’s possible to invest IRA funds beyond stocks, bonds and mutual funds. But self-directed IRAs give account owners control over choosing their investments and they can use IRA funds to participate in almost any form of real estate investment -- from condominiums and office complexes to REITs or tax liens. Using an IRA to invest in real estate provides the added benefit of investing with tax-advantaged dollars. When a real estate investor uses retirement dollars, in most, if not all cases, capital gains are avoided and taxes on income from return on investment are deferred until it's time to take distributions. There are also certain regulations that you need to be aware of when it comes to investing in real estate with a self-directed IRA. One example is that self-directed IRAs are prohibited fro