Issuu

DECEMBER 2020 Vol. 07 | Issue 12

BIDENS TRANSITION TEAMS BRINGS IN BACK KEY CFPB PLAYERS Page 90

COVID ROADMAP

and the search for a vaccine Page 40

HELLO CHRISTMAS BUT WAIT “KWANZAA!” Page 58

HAVE YOU READ OUR PAST ISSUES YET? the power is now

magazine WEST COAST EDITION Vol. 07 | Issue 12

Eric Lawrence Frazier, MBA Publisher Office: (800) 401-8994 Ext. 703 Direct: (714) 361-2105 eric.frazier@thepowerisnow.com www.thepowerisnow.com EDITORIAL TEAM Sheila Gilmore Editor in Chief (800) 401-8994 ext. 711 sheila.gilmore@thepowerisnow.com Daniels George Managing Editor (800) 401-8994 ext. 712 daniels.george@thepowerisnow.com Goldy Ponce Arratia Graphic Artist and Design Manager goldy.ponce@thepowerisnow.com

CONTRIBUTORS The Power Is Now Research Team

CLICK HERE TO READ US ONLINE!

HEADQUARTERS The Power Is Now Media Inc. 3739 6th Street Riverside, CA 92501 Ph: (800) 401-8994 | Fax: (800) 401-8994 info@thepowerisnow.com www.thepowerisnow.com

the power is now

magazine IMPORTANT STATEMENT OF COPYRIGHT:

1ST AND 3RD TUESDAYS OF THE MONTH 7:00 PM TO 8:30 PM ERIC L. FRAZIER MBA

Host NMLS 461807 President and CEO o: (800) 401-8994 ext. 703 c: (714) 475-8629 eric.frazier@thepowerisnow.com www.thepowerisnow.com

Special Guests! for more details go to

thepowerisnow.com/events

The PIN Magazine™ is owned and published electronically by The Power Is Now Media, Inc. Copywrite 2020 The Power Is Now Media Inc. All rights reserved. “The PIN Magazine” and distinctive logo are trademarks owned by The Power Is Now Media, Inc. “ThePINMagazine.com”, is a trademark of The Power Is Now Media, Inc. “Magazine.thepowerisnow.com”, is a trademark of The Power Is Now Media, Inc. No part of this electronic magazine or website may be reproduced without the written consent of The Power Is Now Media, Inc. Requests for permission should be directed to: info@thepowerisnow.com

CONTENTS VIP AGENTS Pg. 23. Arizona Housing market predictions for 2021. When and where to invest Pg. 27. Homeownership rate among millennials has ticked up! What you should know about this segment of homebuyers Pg. 30. Corona housing market: trends, analysis, and more Pg. 34. Fontana Was Ranked among the places hard to buy a home in the beginning of the year! What has changed since then? Pg. 37. This is Why Riverside has remained the country’s tight housing market!

Pg. 40. COVID roadmap and the search for vaccine Pg. 48. Irvine Real Estate market- looking POWER GREEN Pg. 8. The Western Wildfires: 3 big wildfire questions answered! POWER ECONOMICS Pg. 12. Can we still talk about recession or is it over? POWER REAL ESTATE Pg. 14. October Rent Report: Rents Continue to Cool as Larger Units Inch Toward PreCOVID Levels Power Lending

beyond 2020 Pg. 52. How To Tour a House Today: Tips To Make the Most of Virtual or In-Person Showings Pg. 55. No body ever talks about Insurance! So what is the best home insurance company for you? Pg. 59. San Diego Real Estate market overview and forecast for 2021 Pg. 62. What is a VA loan? And how to qualify for VA loans Pg. 66. Here’s my list of the most affordable neighborhoods in Oakland Pg. 69. Planning to buy in Sacramento? You

POWER TECHNOLOGY Pg. 18. PropTech: Re-examining the world post Covid-19. Is PropTech the new Direction? 4

budget should look like this… Pg. 74. 6 ways a buyer mess up when getting a mortgage Pg. 78. Whittier & La Habra: with housing so THE POWER IS NOW MAGAZINE | DECEMBER 2020

expensive in LA, maybe renting is not that

POWER MORTGAGE

bad after all

Pg. 92. FHA decision to Approve Classic Fico for

Pg. 81. The 5 most important home maintenance skills every homeowner should know Pg. 86. FHA loans not for everybody but maybe perfect for you Pg. 86. This is the credit score you typically need to take out a mortgage

Freddie Mac and Fannie Mae. How much does that decision weigh on the housing market? POWER HEALTH Pg. 94. Covid-19: Just How close are we to a Vaccine?

POWER LEGAL Pg. 90. Bidden’s transition teams: brings in back CFPB players: What does that mean?

POWER COMMUNITY Pg. 96. Hello Christmas…. but wait “Kwanzaa!”

Every Other Friday

10:00 AM - 11:00 AM

Promote Your Listings Online CALL ME FOR MORE INFORMATION ERIC LAWRENCE FRAZIER MBA (714) 361-2105 eric.frazier@fbol.com www.thepowerisnow.com

WWW.THEPOWERISNOW.COM

YOUR VOICE IS YOUR BRAND! INCREASE LEAD GENERATION, AND GIVE YOU THE POWER TO CLOSE MORE DEALS!

FROM THE EDITOR up until now, we are still hoping for the best. And that is something we cannot lose sight of-hope! Even in the midst of all the machinations and the confusion, I am still glad that we haven’t lost hope. The COVID-19 has brought out the best and also the worst in us. The economy has almost been on the brink of a hard crash; millions of people lost jobs, thousands have lost their lives, businesses have been temporarily shut, not forgetting counties and states have suffered the same fate.

Wow!

Time flies… can you believe that we are already closing the year? Well, I cannot, and there is a good reason for that; maybe it’s because of COVID-19, or perhaps it’s because of the muchawaited elections, which by the way, I have to congratulate Joe Biden and Kamala Harris for the glorious victory. At least I can confidently say that we are about to get a hang of this virus. Anyway, when I look at where we are coming from, it has been quite an interesting year. Even before the year started, we faced an economic threat resulting from the trade war between China and the US. Stepping into the year 2020, the president then decided to take things further by disrupting the diplomacy between Iran and the United States when he issued a drone strike that killed Qasem Soleimani. Probably, given the man’s history, it was a good idea but not at the expense of peace. I knew then that this would be a rather peculiar year. Not long after, the novel virus struck the nation!

Besides the Pandemic,, other events that marked this year apart were the global Black Lives Matter movement that burst out due to police brutality in the United States. Sparked by the cruel death of George Floyd, people took to the streets to protest the killing of an innocent man. I still think about his death and others like Breonna Taylor and Eric Garner, and I feel the pain of knowing that we are not free. You would think that the killings would stop soon after, but it did not. Soon later, violent protests were reported in Kenosha, Wisconsin, where a police officer shot another black man in the back seven times. These are the crimes that the black community in the United States is tired of, and I know for a fact that by taking a stand as we did, something is about to change; black people cannot be ignored any longer.

In this issue of the TPIN magazine, we look back since day one of the virus, what we did wrong and the lessons that we have learned so far, the triumphant moments but not forgetting what we have lost. No one knew that 2020 would turn out the way it has. While celebrating New Year’s Eve, we hoped for the best, and

Enough with the flashbacks. I am quite sure that now you get where we are coming from. Who would have known that we would make it this far? We did, and you and I are the lucky ones! You know that saying that every cloud has a silver lining? Well, bad as it has been, 2020 has had its other side of the coin. To mention a few good things, the real estate market was thriving, the spring season wasn’t that promising, but I am glad that the market recovered quite strongly.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

This being the last edition for the year 2020, I want to take this chance to express my gratitude to everyone who has been a part of our journey this year. From our VIP Agents, the marketing team, our guests for our shows, to you, the reader, and the viewer. I want to say Thank You. I appreciate all the hard work that everybody puts into making what we do unique. You all played a significant role in making 2020 a success, despite the different challenges that came with the year.

together and leading the conversation about Real Estate for home-ownership, wealth building, and financial literacy for low to moderate-income and minority communities.

Looking back, I’d frankly say that we aren’t where we were at the beginning of the year. We’ve crossed borders to places where I never thought we’d ever reach. We’ve inspired more, supported more, achieved more, and created more. I love The Power Is Now Media and everything we do for real estate professionals, consumers, and the community. As we cross into 2021, I want to urge you to continue being engaged as a member of The Power Is Now family. Let’s continue working

I’m looking forward to the unveiling of a safe and effective vaccine that will sweep the deadly virus from the world. From The Power Is Now family, we wish you a merry Christmas and a happy new year 2021.

Conclusively, I want to take this chance to wish you happy festivities. Enjoy the holidays but don’t forget to stay safe. COVID-19 is still here with us, and until we get a vaccine, it is not going anywhere, so we’re not safe yet.

Eric Lawrence Frazier, MBA

CEO and Founder The Power Is Now Media, Inc.

Imagine What Down Payment Assistance Can Do For YOU!

Purchase Price of Home $350,000

Myths payment

own about d • • • • • •

First Mortgage Loan $339,500

Down Payment and Closing Cost Assistance from GSFA $23,765 Total Assistance

ce assistan

Only for first-time homebuyers. Only for low-income families. Only for people that have exceptional credit. Only works with FHA loans. Harder to qualify. Takes longer to close.

Toll-free: (855) 740-8422 E-mail: info@gsfahome.org Web: www.gsfahome.org

*Advertisement contains general program information, is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Example based on 97% Conventional First Mortgage Loan combined with 7% in down payment and closing cost assistance. For complete program guidelines, loan applications, interest rates and annual percentage rates (APRs) contact a GSFA Participating Lender. Golden State Finance Authority (GSFA) is a duly constituted public entity and agency. Copyright © 2020 GSFA half pg ad - PIN magazine 062920.indd 1

6/29/2020 3:03:55 PM

THE WESTERN WILDFIRES: 3 BIG WILDFIRE QUESTIONS ANSWERED!

assive wildfires continue to blaze across the Western United States, leaving behind a thread of destruction. As of September, the National Interagency Fire Center had reported that 93 huge wildfires had burned more than 1.8 million acres across 14 states, including 1.4 million acres in California alone. All this has taken place in the same year that has been a pandemic is wreaking havoc worldwide. Wildfires not only burn millions of acres of land every year but also bring immeasurable destruction of thousands of homes and cover cities in unhealthy levels of smoke. In the Western US, wildfires are historic. According to Valerie Trouet, a paleo-climatologist who researches forest ecosystems at the University of Arizona, the gigantic Western US blazes are like colossal campfires. “What do you need to start a campfire? You need to burn some kindling. The more kindling you have, the better your fire is going to burn,” said Valerie Trouet. “And the drier it is, the better it’s going to burn.” The historically recurring Western US fires have raised a lot of questions, and people have always been seeking answers. Below are the three main, salient questions and answers from experts about the recent Western fires which are likely to continue burning in a world that is inevitably getting warm.

the complex challenge of wildfires, according to eight scientists who spoke to Mashable. com. The two factors are naturally intertwined. “You can’t ever look at the fire without looking at both things,” said Adam Coates, an assistant professor in forest fire ecology and management at Virginia Tech. “They’re married together.” “We shouldn’t polarize it,” said Stephen Pyne, a fire historian and emeritus professor at Arizona State University. “Fire is a driverless car. It is a reaction. Different factors at different times and places loom larger.” The two driving forces of wildfires are so influential, which has rightfully earned them attention. However, it’s extremely challenging to distinguish the degree of responsibility either climate change or forest mismanagement played in a specific fire, explained the University of Colorado Boulder’s Balch. Conclusively, climate change due to human activities has greatly fueled the recent wildfires.

1. WHAT’S THE DRIVING FORCE OF THE FIRES, CLIMATE CHANGE OR OVERCROWDED FORESTS? The question of whether the recent Western fires were fueled by the warming climate or the overcrowding and mismanagement in forests can be misguiding. Both factors (in addition to other factors such as fire-prone invasive vegetation) are often the major contributors to 8

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Researchers have found out that it nearly doubled the amount of forest fire between 1984 and 2015. On the other hand, with overgrown forests, there is so much vegetation available to burn, especially in the drier seasons. 2. HOW DO WILDFIRES IMPACT THE ENVIRONMENT? Wildfires impact the environment both positively and negatively. According to Joseph Roise, a professor in the Department of Forestry and Environmental Resources at NC State’s College of Natural Resources, wildfires are integral to the health of ecosystems worldwide. Apart from clearing heavy brush and invasive weeds from the forest floor, the fires also weaken the tree canopy, giving access to more sunlight to reach the ground. This promotes the growth of new grasses, herbs, and shrubs. “After a fire, plants grow back 99 percent of the time,” Roise says. Professor Rosie adds that without wildfires, hardwood seedlings would dominate the understory and overshadow

longleaf pine and wiregrass communities, which are habitat to rare species such as gopher tortoise and woodpecker. Moreover, wildfires kill individual animals but don’t destroy the entire population or species, according to Roise. “Some animals get trapped. But many of them know where to go to escape the heat,” he said. On the other hand, wildfires destroy the understory brush, weakening the soil’s ability to absorb as much water resulting in flooding. Additionally, wildfires release massive amounts of carbon dioxide and other greenhouse gases to the atmosphere, leading to further climate change. 3. HOW CAN THE RUTHLESS CYCLE OF DESTRUCTIVE FIRES BE STOPPED? Experts argue that even if we slash carbon emissions, warming on earth will keep happening at least through the next few decades. This is because the ocean absorbs over 90% of the heat from human activities on earth, and will gradually release this energy back into the atmosphere for many future years. Moreover, researchers say that the current atmospheric levels of the heat potent heattrapping carbon-dioxide are the highest they have ever been in at least 800,000 years and more likely millions of years. This means drier fuels and more fire. Yet, we can remove many of the fuels that cause destructive fires, and 2020 has proved that we must.

WWW.THEPOWERISNOW.COM

“It’s important to realize that the no-fire scenario we’ve gotten used to is no longer on the table,” said the University of Arizona’s Trouet. “That is something we created artificially in the 20th century. We’re suffering the consequences now.” Since millions of Americans live in or near fire country, wildfire agencies will keep suppressing the fires. Also, this means that prescribed fires should be introduced onto landscapes under a controlled environment when windows of opportunity open, such as during spring. This will significantly reduce the quantities of fuel available to burn. “We have a responsibility to manage that,” said Virginia Tech’s Coates. “This can’t be half-hearted. We’ll need to burn, regularly and consistently, like Indigenous cultures centuries ago.” “When there’s less vegetation to burn on the ground, flames won’t have the fuel to leap into the crowns of trees, igniting tremendous fires. That’s why fuel treatments work,” explained John Bailey, a forestry expert at Oregon State University. Introducing prescribed burning is a bitter pill to swallow, but it will significantly help in fighting the massive destructive forest fires. Work cited. https://mashable.com/article/ wildfires-california-western-usexplained/.

Install smart home technology, upgrade your computers, put in a home theater, improve your home office and remote learning environment, set up a home security system... There’s no end to what you could do!

Is your house asking for a

HOME TECH UPGRADE? HOM E EQU ITY LI N E OF CR E DIT as low as

2.99

% apr

for the first 12 months

as low as

4.25

% apr

after

ERIC [FirstLAWRENCE Name] [LastFRAZIER Name] MBA Vice [Title]President and Mortgage Advisor Office: 261-1634 ext. 703 Branch(800) Name Fax: (314) [XXXXXX] 264-0211 NMLS#: NMLS#461807 [(XXX)] [XXX-XXXX] eric.frazier@fbol.com [FirstName].[LastName]@fbol.com

11010 Limonite Ave. Miraloma CA 91752

firstbanks.com 800-760-BANK

*The Annual Percentage Rate (APR) is a variable rate based upon an index and a margin. The APR will vary with the Prime Rate (the index) as published in the Wall Street Journal. The variable rate APR will range from Prime + 0% to Prime + .425%, depending on the applicant’s credit score. This variable rate is based on auto-debit of payments from a First Bank checking account. If not auto-debiting payments from a First Bank checking account, add .75% to the rate. The APR may increase or decrease but will not exceed 18% nor will fall below 4.25% except during the 12 month promotional period. During the promotional period the rate will be based on applicant’s credit score with either Prime - 0.26% or Prime + 0.34% and both promotional rates requires auto-debit of payments from a First Bank checking account. As of September 1st, 2020, the APR ranges from 4.25% to 4.425% and the promotional rate is 2.99% or 3.59%. Rates are subject to change. This promotional rate is available only for consumer checking account clients of First Bank who do not have a HELOC with First Bank as of August 31st, 2020. Offer available for applications accepted during September 1st – September 30th 2020. No closing costs on lines up to $1,000,000 for standard documentation; third-party fees to be paid by borrower for loans over $1,000,000. Member FDIC

CAN WE STILL TALK ABOUT RECESSION OR IS IT OVER?

It is crucial that we first explain what recession is before we venture into whether there’s still recession or it’s over already. According to Wikipedia, a recession is defined in economics as “a business cycle contraction when there is a general decline in economic activity.” Recession often leads to losses of jobs, hence, reducing income in the country. With a reduced income comes reduced spending, reduced tax payments, and so on. Therefore, when a recession struck, there’s usually a reduction in money circulation, and the country’s economic activities will be badly affected. The world’s economy just received a big punch from the unexpected global pandemic, and it is yet to be healed of it. Businesses and economic activities across the world were closed to curtail the pandemic. Thus, government revenue was reduced, yet, government spending increased to find suitable medication and vaccines to cure and control the virus. At a time like this, should we be looking at a new recession, or we shouldn’t be bothered about it?

THE POWER IS NOW MAGAZINE | DECEMBER 2020

In April this year, a Household Pulse Survey was launched by the United States Census Bureau to see how the nation is affected by the economic crisis. There were weekly reports provided during this survey. In the end, the result was analyzed. It was discovered that millions of people have lost their job and can’t afford to get quality meals or pay their rent. The truth is, this is not the time to look away. The world might be looking at a big recession coming their way since a cure is yet to be discovered for the virus. World’s Bank analyzed and forecasted that the world might witness an economy shrink of 5.2% in 2020 — this year. Should that forecast be proved to be right, then the world might slip into a significant economic recession — one that has never been witnessed after World War II. This report was revealed in the world Bank’s 2020 Global Economic Prospects. The report further explained that the recession would not only hit the Emerging market and developing economies (EMDEs), but advanced economies will also be significantly affected. The big economies will receive the biggest punch. Their economies were forecasted to shrink by 7% this year. On the other hand, it was predicted that EMDEs economies would decline by 3.6%. With such an occurrence, millions of people will be thrown into abject poverty. All these are primarily due to the effect of the lockdown. Therefore, the countries that will suffer most will be those that

WWW.THEPOWERISNOW.COM

received the hardest punch from the pandemic. Countries like the United States, Russia, and Co, where the virus affected millions of people and killed thousands will be primarily affected and might slip into recession. For instance, economic activities in the United States halted for months, with about 250,000 people killed. The United States today is yet to curtail the rampaging pandemic, and if it continues like that, the country may be looking at a great recession. Countries that depended mainly on tourism, global trade, external financing, and commodity exports will be significantly affected. Most developing countries — such as the African countries, suffered less from the virus, and economic activities are gradually returning to normal across their streets. Thus, they ought to manage the supposed recession. However, they also might fail in this regard. This is because most Emerging market and developing economies (EMDEs) depended on external financing and commodity exports. Therefore, their vulnerabilities will be due to external shocks. Both developed and emerging economies have a massive task at hand if they must avoid the supposed recession. References https://www.cbpp.org/research/poverty-andinequality/tracking-the-covid-19-recessions-effectson-food-housing-and https://www.worldbank.org/en/news/pressrelease/2020/06/08/covid-19-to-plunge-globaleconomy-into-worst-recession-since-world-war-ii

OCTOBER RENT REPORT:

RENTS CONTINUE TO COOL AS LARGER UNITS INCH TOWARD PRE-COVID LEVELS POWER LENDING

he 2020 real estate market has been a beehive of activities as the economy gradually recovered. As we get deeper into the year, various housing market indicators continue to reveal that the market is bouncing back strongly after suffering severe blows from the pandemic earlier this year, while other indicators are showing the opposite. October 2020 rent report released recently shows that rents across the countryâ€™s 100 largest counties are continuing to slow down. This happens as year-overyear trends are easing since March across studio, onebedroom, and two-bedroom units. In several other big cities, rents are substantially low compared to 2019. The report shows that one-bedroom rents were dropping year-over-year in 34 of the 100 largest counties in October, up from just six in March. On the other hand, two-bedroom rents were also declining year-over-year in 25 of the 100 largest counties in October from last year, up from 12 in March. Nationally, rents are still growing below pre-pandemic rates. According to the report, rent for a median studio unit in October was $1,316, down 0.8% yearover-year. Studio rents were growing by 5.5% year-over-year in March. Beginning April, all

THE POWER IS NOW MAGAZINE | DECEMBER 2020

the seven months have recorded slowdowns in studio rent progressively. The report further shows that the median rent for a one-bedroom unit in October was $1,495, representing a 1.1% yearover-year increase, and a slight increase from 2.3% the previous month. Previously, two-bedroom rents were inclining by 3.5% year-overyear in March. If this pace persists, it will only take a few months for the growth of twobedroom rents to get back to the pre-pandemic rates. Larger units inch back to prepandemic rent growth rates. As studio rents seem to slow down consistently since March, larger two-bedroom rents seem to be returning gradually to prepandemic growth levels. As of June, two-bedroom rent growth dropped to 2.1% year-over-year, representing a drop from 3.5% growth in March. Recently, these two-bedroom rents have begun to bounce back in the 100 largest counties recording a 2.6% year-over-year growth in October. If the trend keeps in that track, growth rates for the larger units are likely to return to the pre-pandemic levels in early 2021. The ongoing recovery is driven by the growing demand for more living space. Apart from homebuyers looking for more space, renters too are in search of more space where they can find it as more people are resorting to working from home. Moreover, as the economy is recording recovery, fewer renters are willing to incur the high cost of renting studio apartments alone. Regarding this, most renters are resorting to living with roommates and

WWW.THEPOWERISNOW.COM

moving from studio apartments to larger units to save money in the current harsh economy. The October report reveals that living with a roommate in a two-bedroom unit would save renters an average of 29% on their monthly rental expenses compared to living alone in studio apartments. Even with a continued recovery of the larger unit rents, living with a roommate in a two-bedroom unit will still remain a more economical decision. Tech centres rents continue dropping. As renters are recovering from the pandemic while searching for more affordable housing, employment opportunities, many are an option for less-crowded neighbourhoods. Large urban centres such as Manhattan, Boston, Bay Area, Washington, D.C, and Seattle recorded the highest year-overyear rent declines. The same urban centres represent some of the most expensive cities in the country, leaving a room for rents to decline. Elsewhere, on the west coast, tech workers in San Francisco and across the Bay Area (some of the most expensive rental markets in the country) were presented with the opportunity to work remotely, thus reducing the need for residing near their workplace. This freed them up to search for rental spaces in more affordable areas. San Francisco was a top of the list of rent declines in all the three types of units with studio rent dropping by 33.3%, one-bedroom units by 26.3%, and two-bedroom units by 23.4%.

Work cited. https://www.realtor.com/research/october-2020-rent/.

YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.

Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may file a fair housing complaint. To file a complaint, go to

hud.gov/fairhousing or call 1-800-669-9777 If you fear for your safety, call 911.

FAIR HOUSING IS YOUR RIGHT. USE IT. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

PROPTECH:

RE-EXAMINING THE WORLD POST-COVID-19. IS PROPTECH THE NEW DIRECTION?

COVID-19

made a strong wave across the world,

with many businesses closing. Regulations were made to curtail the virus, and it brought about a new perspective of approaching things across the globe. Social distancing is one of the new rules and working from home is a new trend.

Though the pandemic is not over yet, there has been a significant decrease in the way it spread, and the number of infected people has significantly reduced. Now, we should begin to talk about the world post-Covid-19. The truth is, things will never remain the same. The global pandemic challenged the world, hence, spurning many old methods of doing things and giving innovation a chance. PropTech â€” Property technology or real estate technology is defined

THE POWER IS NOW MAGAZINE | DECEMBER 2020

by Wikipedia as the “application of information technology and platform economics to real estate markets.” PropTech has been used for years in the real estate industry, but it is not very popular. It involves the use of technological materials like smartphones for real estate transactions. PropTech, therefore, helps to reduce paperwork or physical meetings. Its principle aligns with the social distancing regulations enforced around the world to curtail the virus. Thus, with PropTech, investors, agents, and homeowners were still able to deal during the lockdown. PropTech allows them to perform their transactions directly from the comfort of their home without stepping an inch outside. With it, they can see the property they desire to purchase, its features, and several other things they need to know. It is no gainsaying that PropTech helps to increase the speed of transaction, reduce stress, saves time, and it’s more efficient. The question now is, will its use continue to be widely accepted post-Covid-19, the way it was adopted during the pandemic? The answer is yes. Seeking comfort is human nature. If I can get something done efficiently in my comfort, why should I leave my comfort to get the same thing done? PropTech is the new Direction in the real estate world. The modern real estate market is beyond physical presence and interaction. It involves

property management using digital dashboards. This means investors can be anywhere and still effectively manage their property. It allows them to invest their time in several other ventures. The contemporary modern real estate market also includes listing services/tech-enabled brokerages, smart home technology, 3D-modeling, and mobile application. With this widely adopted approach, no one has anything to lose. It’s a win-win for both seller and buyer. Adopting a modern technology of this nature will help increase the number of estate transactions. Initially, purchasing a property depends mainly on the availability of the investor. Investors might have everything required, especially the needed fund, yet, if the time factor is out of it, then the transaction might be delayed for a longer time. Fortunately, Covid-19 has allowed everyone to adopt better approaches. Now, the factor of time is out of the equation. Investors and sellers can meet and complete a transaction online without necessarily having physical contact. However, it seems the pandemic has been kept under control, and activities are already returning to normal. Some investors might still desire to meet their seller in person and also physically see the property they wish to purchase. This still doesn’t mean property technology will be thrown out of the window, and people will return to their traditional business ways. PropTech is the new direction, and it has come to stay because of its fantastic contributions to the real estate market. It is the latest trend that should be adopted by any homebuyer or seller that desires to save time and money.

References https://news.crunchbase.com/news/the-new-proptechstartups-focused-on-saving-time-and-money-will-thrive/ https://en.m.wikipedia.org/wiki/Property_technology

WWW.THEPOWERISNOW.COM

SELECT A VIP AGEN Adrian Bates Los Angeles

Adriana Montes Florida

Ameer Elahee Fontana

Cornelous Jackson Irvine

Danon Burnside San Bernardino

Denise Matthis San Diego

Emerick A. Peace Maryland

Eric Hooks SF Bay Area

Jenny Gonzalez Corona

Jerel Washington New Jersey

Joe L. Fisher Richmond

Johnnie Morine Texas

Julius Cartwright Ohio

Kamesha Keesee Corona

Kenneth Session Bay Area

Briana Frazier Los Angeles

NT IN YOUR AREA Monica Hill Menifee

Peggie Simmons Arizona

Robert Langston Fairfield

Steve Peterson Oakland

Success Money LA Area

Yvonne McFadden Arizona

Ruby Frazier Riverside

ARIZONA HOUSING MARKET PREDICTIONS FOR 2021. WHEN AND WHERE TO INVEST.

Yvonne Mcfadden With everything that has happened in the 2020 pandemic-induced economy, someone who had planned to invest in the Arizona real estate market come next year may turn skeptical. According to Mashvisor. com, all that can be said about the 2020 Arizona housing market is that investors have earned a good rental income and ROI this year, despite the pandemic. However, you might be wondering whether the same will happen in 2020. Let’s have a look at some 2021 predictions for the Arizona housing market from Mashvisor.com.

1. HOME VALUES.

According to Zillow, home prices in the Arizona market are expected to record an 8.2% increase from November 2020 through to September 2021. Looking at the previous trends in Arizona, the Zillow forecast isn’t too surprising as the Arizona market has recorded strong housing appreciation historically. According to Neighborhoodsscount.com data, property values appreciated by 128% since Q1 2000, representing a 4.15% yearly rate. This gives the hint that Arizona home values will continue to surge despite the pandemic. Moreover, data from Veros Real Estate

WWW.THEPINMAGAZINE.COM

Solutions shows that the hottest 2021 housing market in Arizona will be Sierra Vista, increasing by 5.8% in home values.

2. RENTAL SECTOR.

As we get into 2021, the long-standing issue of affordability will continue to drop for residents. According to data from Mashvisor, the current price to rent ratio in Arizona is quite high, at 23. This suggests that it’s more affordable to rent in the Arizona housing market than buy a home. With home values climbing higher, many prospect homebuyers will be priced out of the market. Despite the low mortgage rates, the rapidly rising home values won’t be easily offset.

Additionally, Arizona is also struggling to recover from high unemployment rate, which is worsening affordability. With such facts, it’s justifiable to forecast that the renter population will increase in Arizona in 2021, since renting will be cheaper than buying a home.

3. AIRBNB

The 2020 Airbnb sector has generally faired well despite the pandemic restrictions. The market sector managed to be profitable this year amid the pandemic-induced economy. This hints that Airbnbs in Arizona will remain profitable even in 2021.

4. MOUSING MARKET CRASH.

Realtor.com’s Housing Market Recovery Index (HMRI) revealed that the largest

metro in Arizona (PhoenixMesa-Scottsdale) is making a comeback since declining earlier this year. The HMRI takes into consideration housing demand and supply, home prices, and the pace of home sales. Although this is only one sector in the state, it still represents a good indicator of how Arizona is fairing in terms of recovery from the pandemic. Based on this, it’s clear that the housing market will not experience a crash in Arizona come next year.

Arizona housing market to remain a seller’s market in 2021, since there are no major foreseeable changes in the current key trends. Conclusively, for investors looking to buy Airbnb rental properties, here are the best cities to do that in 2021; Tucson, Chandler, Tempe, Gilbert, and Avondale. If you’re looking to invest in a traditional rental property, here are the best cities you can do that in 2021; Chandler, Avondale, Scottsdale, Gilbert, and Mesa.

5. TYPE OF MARKET.

Arizona is likely to experience an increase in property prices in 2021, pricing out many prospect buyers out of the market. This will be good for sellers waiting to capitalize on real estate appreciation gains. From that, we all expect

Work cited. https://www.mashvisor.com/ blog/arizona-housing-marketpredictions-2021/.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

HOMEOWNERSHIP RATE AMONG MILLENNIALS HAS TICKED UP! WHAT YOU SHOULD KNOW ABOUT THIS SEGMENT OF HOMEBUYERS.

Peggie Simmons

n recent years, millennial home buyers (aged between 25 to 40) have been flocking the real estate market looking to fulfil the American dream of owning a home. Their patterns of buying homes has been intermittent. During the pandemic period, millennial homebuyers have been a great driving force in the housing market. This has left many real estate experts and agents with questions. Who is this generation? What do they want in a home? Below are a few things about millennial home buyers that you may want to know.

1. THEY HAVE A RECESSION MINDSET. The millennial home buying equation has several factors. Millennial home buyers were and are significantly affected by the Great Recession. Studies have revealed that millennials are thrifty and wary when making financial decisions, especially due to huge college debts and low chances of getting a job. With the challenges that the millennials face in the labour marker, they have to be very cautious when making huge financial decisions such as buying a home. WWW.THEPOWERISNOW.COM

2. MILLENNIALS LOOK FOR DIFFERENT THINGS IN A HOME. Many realtors wonder what millennials look for in a home when they’re finally ready to buy a home. What really attracts them to a particular home? What is on their “wish list” for a home? And what are they willing to sacrifice? One thing that is well known is that first-time millennial home buyers are very frugal and smart when marking the first transaction. Moreover, one study has revealed that millennials are more willing to sacrifice to buy a home than all other l

generations. Millennials are known to give up on luxuries such as eating out and vacations to save money for a mortgage payment or down payment. When buying a home, millennials often stress more on affordability, convenience or proximity to workplace, which explains why they are more likely to buy homes in urban centers. 3. MILLENNIALS VIEW HOME OWNERSHIP DIFFERENTLY. Millennials look for different things in a home, and also view homeownership different from other generations. While other generations such as Baby Boomers and Generation X see owning a home

as a symbol of one’s status and long-term investment, millennials view homeownership as a necessary rite of passage. Millennials also perceive owning a home with more fluidity and flexibility. Most expect to live in a home for 10 years before moving elsewhere, whereas the other older generations expected to live in a home for 15 to 20 years. This is simply because millennials are more willing to relocate quickly whenever a better job opportunity shows up. 4. MILLENNIALS ARE MORE LIKELY TO LOOK ONLINE FIRST. Millennial generation is the first generation to be introduced to the world of

technology at a tender age. This makes technology a significant aspect in their lives and in any process, including buying a home. According to NAR, 94% of millennial home buyers start by going through online listings first. Moreover, over half of millennial buyers start the home buying process on a mobile device, and many end up finding their preferred homes through the mobile devices. This doesn’t mean that millennial home buyers don’t use real estate agents. They do. But they first do their research online before contacting an agent. Therefore, this means that high-quality photos and even video presentations are crucial for an agent doing online listings. The few things listed above are common to most millennials. They should be the things to consider as a realtor if you’re looking to capture millennial home buyers in their large numbers.

Work cited. https://www.kwsanantonio.com/ news/7-things-you-need-to-know-aboutmillennial-home-buyers/.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Kamesha Keesee CORONA HOUSING MARKET: TRENDS, ANALYSIS AND MORE WITH KAMESHA KEESEE REALTY

he 2020 Corona, CA housing market has been thriving amid the pandemic. All housing market indicators have repeatedly shown that the Corona, CA housing market is doing well in the pandemic-induced economy. Below are some Corona, CA housing market insights and trends, that shows how the market is doing so far and where it is headed. Home prices in Corona, CA, are still climbing. Experts have said that the current real estate costs in Corona, CA are among the highest nationwide. As of November, the median home price in Corona, CA was $540,000, representing an 8.1% increase from November 2019, and a 1.8% decline from October 2020.

In November still, homes in Corona, CA were staying on the market for an average of 55 days before selling. This represents one day less compared to November last year and 5 days month-over-month decline. This is an indication that homes are selling fast in the Corona, CA housing market. Moreover, the November sales-to-list ratio in Corona, CA, was at 1. This suggests that homes were selling at the same price theyâ€™ve were listed with.

CORONA, CA HOME APPRECIATION RATES.

Corona, CA housing market has recorded some of the largest home appreciation rates compared to any market in the last 10 years. The housing market appreciated 74.59% over the last 10 years, representing 5.73% in average annual home rate. This places Corona, CA, among the top 10% nationally for real estate appreciation. Fast forward to the last year, Corona, CA home appreciation rates have trailed the rest of the country over the previous 12 months. Coronaâ€™s home appreciation rate has been 3.89%

THE POWER IS NOW MAGAZINE | DECEMBER 2020

for the last 12 months, which is lower than rates in other markets across the country. According to NeighborhoodScout’s data for the latest quarter, appreciation rates in Corona, CA, were at 1.27%, which equates to 5.19% annual appreciation rate.

IS INVESTING IN CORONA, CA HOUSING MARKET WORTH IT? You might be having this question if you were planning to invest in the Corona, CA real estate market. The answer to that question is a resounding “YES, indeed.” Corona, CA real estate market has a track record of being among the best longterm real estate investments in the country. Moreover, the Corona, CA home appreciation rates highlighted above are indicators that investing in Corona real estate market is with bear returns. Moreover, according to Walletinvestor live Forecast System, investing shortterm in Corona, CA, real estate in Corona is not a very good idea. Instead, long-term investment in the Corona, CA market is a good choice. Walletinvestor predicts that long-term profit potential in Corona, CA market is 2.64% increase in one year.

Works cited. https://www.homelight.com/corona-ca/ housing-market. https://www.neighborhoodscout.com/ca/ corona/real-estate#description. https://walletinvestor.com/real-estateforecast/ca/riverside/corona-housingmarket.

WWW.THEPOWERISNOW.COM

THIS VETERAN HAS EXPERIENCED ENOUGH.

HE SHOULDN’T HAVE TO FIGHT HOUSING DISCRIMINATION BECAUSE OF HIS DISABILITY. Sergio lost his leg and his hearing while serving our country overseas. Now back home, he was ready to start a new chapter in his life. But when he found the perfect apartment, the landlord refused to make a reasonable accommodation to allow his service dog in a “no pets” building. Then Sergio learned that the Fair Housing Act protects people with disabilities. He contacted HUD and filed a complaint. Today, Sergio is feeling right at home. If you believe you’ve experienced housing discrimination, please contact

hud.gov/fairhousing 1-800-669-9777 50 YEARS OF OPENING DOORS. A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing.

WWW.THEPINMAGAZINE.COM

FONTANA WAS RANKED AMONG THE PLACES HARD TO BUY A HOME AT THE BEGINNING OF THE YEAR! WHAT HAS CHANGED SINCE THEN?

Ameer Elahee

he process of buying a home can be more challenging in some markets due to higher home prices, lower inventory, and lower negotiating power. Now with the presence of a pandemic in our midst, the process of buying a home becomes a complete nightmare. In the US, different markets are ranked on their level of difficulty when buying a home. The “Hardest Places to Buy a Home in America” 2020 edition that ranks places on the level of difficulty in buying a home was compiled by SmartAsset after conducting a study. During the studies, SmartAsset analyses three metrics; affordability, inventory, and price cuts. After completing the study, SmartAsset placed Fontana on position six on the list of the most challenging places to buy a house in the US.

Fontana’s average home prices may be lower than some other cities in the country. However, Fontana appearance in the list of the hardest places to live in the country was majorly attributed to the fact that majority of its residents’ inability to make enough money to afford the purchase of a new home in the area. “Fontana is farther away from downtown Los Angeles than the cities of Anaheim, Santa Ana and Long Beach. With that distance, housing inventory is nearly doubled. Based on data from Zillow and the Census Bureau, there are almost 82 homes available for every 10,000 households in Fontana,” SmartAsset said in its analysis. “Homebuyers pay relatively close to the asking price on homes in Fontana: The median price cut on homes in 2019 was 1.79%, the ninth-lowest rate for this metric in our study.” THE POWER IS NOW MAGAZINE | DECEMBER 2020

“While affording a down payment may be the largest challenge to buying a home, many other factors play into finding the right place to take out a mortgage and put down roots,” SmartAsset said. “Inventory and pricing vary widely by city and affect buyers’ options and the ability to negotiate.”

WHAT IS HAPPENING IN FONTANA CURRENTLY?

According to Movoto, prices in Fontana City are still rising, like other real estate markets across the country. The November median list price in Fontana was $491,315, representing a 2% increase from October 2020. On the other hand, the home resale inventories in Fontana in November were 119, which represents a 14% decrease from the previous month, according to Movoto. Moreover, the median list price per square foot in Fontana was $254, which is a decline from $269 in the previous month. Elsewhere, Walletinvestor.com predicts that the median listing price in Fontana is likely to rise as we

INTER

move forward. Wallentinvestor.com also predicts that for investors looking to invest long-term in the Fontana real estate market, the long-term profit potential is likely to increase by 2.78% in one year. Walletinvestor.com also advises investors against investing in the Fontana housing market on shortterm, but instead, they should invest on a longterm basis. Since the naming of Fontana among the hardest places to buy a home in the country at the beginning of the year, the situation seemed to have improved. Housing activities are thriving according to data from various sources, as highlighted above. This is possibly due to the favourable housing market conditions that have been by the government and the Fed, such as low mortgage rates. Works cited. https://www.fontanaheraldnews.com/business/fontana-ranksno-6-on-list-of-hardest-places-to-buy-a-home-in-america/ article_7782c3b2-7b69-11ea-a706-233d7d045367.html. https://walletinvestor.com/real-estate-forecast/ca/sanbernardino/fontana-housing-market. https://www.movoto.com/fontana-ca/market-trends/.

EST R

WWW.THEPOWERISNOW.COM

ATES l

THIS IS WHY RIVERSIDE HAS REMAINED THE COUNTRY’S TIGHT HOUSING MARKET!

Ruby Frazier

he latest insights on what’s happening around the Riverside housing market are as follows; the median listing price in Riverside was $509,900 as of November 23, representing a less than 1% change from October 2020, according to Movoto. Moreover, home resale inventories in Riverside were 312, representing a 10% decline since October 2020. Data from Movoto also shows that the median list price per square foot in Riverside market was $276, which is the same figure for October 2020. Also, distressed properties such as foreclosures and short sales didn’t change in November from October in the Riverside housing market. From the few insights above, it is clear that the Riverside real estate market is thriving well and tight with housing activities amid the pandemic. You may be wondering why the Riverside market has remained tight and thriving better than most markets across the country. Below are some of the reasons.

1. HOME APPRECIATION RATES.

Over the last ten years, the Riverside housing market has recorded some of the largest home appreciation rates compared to other markets countrywide. The market has appreciated 103.12% over the last ten years, translating to 7.34% annual home appreciation rate. This puts Riverside in the top 10% nationally for housing appreciation. Further, according to NeighborhoodScout, Riverside market recorded a 4.58% home appreciation rate in the last 12 months, which is slightly above the national average. Appreciation rates in the Riverside housing market have made it so attractive to homebuyers and investors.

WWW.THEPOWERISNOW.COM

2. LOCATION.

Riverside, CA, is located within close proximity to Los Angeles and San Diego, the two most prominent housing markets in California. Therefore, it’s clear that the Riverside market has significantly benefitted from its location. Moreover, Riverside sits in an area overflowing with industrial activity, otherwise known as the Inland Empire. The ports of Los Angeles and Long Beach have been bustling due to the recent industrial developments happening in Riverside.

3. ECONOMIC ACTIVITIES.

More companies are opening up in Riverside, translating to strong growth in local employment. Moreover, major corporations are establishing warehouses in Riverside to cater for their growing needs. Despite the pandemic, most economic activities are doing well in Riverside. This is attracting a lot of people from all over looking for jobs, consequently driving the demand for more houses. Moreover, the growing economy within the Riverside housing market played a significant role in reducing foreclosures in the first half of 2020 by half. This is a huge change considering the Riverside housing market had one of the biggest ratios of foreclosures countrywide.

The Riverside housing market is currently experiencing low housing inventory like the other markets across the country. The market was a seller’s market in October 2020 and is expected to remain that way moving forward. The Riverside housing market is also expected to continue booming with activities going forward as there are no signs of a possible crash. Also, the housing prices are expected to continue rising as long as the market remains a seller’s market. Works cited. https://www.movoto.com/riverside-ca/market-trends/. https://www.fortunebuilders.com/riverside-real-estate-market/.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Do you know

Peppermint Ridge? We provide a community of loving homes and empowering support services for individuals with intellectual and developmental disabilities.

support and encourage our residents to live their

lives and fulfill their dreams by fully embracing their indvidual abilities and interests. With 24-hour specialized care and staffing, we provide comfortable, secure homes and recognize that everyone feels a sense of belonging when they have familiar places in which to spend time with family and friends.

There

is a true sense of family at Peppermint Ridge. Of the 94 adults who

live at The Ridge, 38 have lived here for more than 20 years, with 10 of those calling The Ridge home for 40 years or more. Residents have the opportunity to flex their muscles of independence while developing rich lives of their own away from their loved ones. About 30% of our residents have no family, so other Ridgers and our staff have become their family.

Many

caring companies, organizations and individuals in

the community enjoy getting to know The Ridge by helping on small projects, hosting fundraisers, lending a hand at events, volunteering in our office, and assisting residents in activities such as arts and crafts, pool days, horseback riding, music and piano lessons, and exercise classes.

825 Magnolia Ave â€˘ Corona CA 92879 â€˘ 951.273.7320 www.PeppermintRidge.org â€˘ Tax ID: 95-2409851

COVID-19 ROADMAP AND THE SEARCH FOR VACCINE

n the year 2019, the world experienced one of the deadliest viruses in the history of human existence- the novel Coronavirus 19, commonly known as Covid-19. The outbreak of this deadly virus started in Wuhan, China, and it quickly spread like a rampaging wildfire to different parts of the world. Gradually, it found its way to the United States. The US recorded its first Covid-19 case on January 21, 2020, when a young man from Washington man returned from Wuhan. Since then, the United States, like every other part of the world, has been battling this deadly virus. The Center for Disease Control and Prevention (CDC) reported that the first local transmission of the virus in California was a patient who has no travel history to any region with the outbreak. The patient also didnâ€™t have any history of coming in contact with anyone diagnosed with the virus. Different states in the US, including New York, Washington, and Oregon, announced their respective community transmission cases.

SEVERITY

As of late November 2020, statistics show that there are about 62.8 million total Coronavirus cases in the world. Out of all these infected people, 40.2 million have recovered, and 1.46 million have died. However, the United States has about 13.4 million cases, which is one of the highest in the world. The death toll in the United States now stands at about 267,000. The US is one of the highest hit regions in the world, mostly because of its high immigration rate. Perhaps it

wouldnâ€™t have been so bad if international and interstate movements were closed earlier. At first, the US government was reluctant to put the country on total lockdown, which contributed significantly to why the virus quickly found its way across the country. The Trump administration was severely criticized for its handling of the pandemic resulting in the loss of lives. The approach adopted by the US government can be a possible reason why the country ended WWW.THEPOWERISNOW.COM

up nen one of the hardest hit by the pandemic. The virus could have been curtailed earlier, but President Trump played down the severity of the virus. The president said “it’s going to disappear” but unfortunately, it kept spreading across the country rather than disappearing. Even at the point when it was killing a lot of Americans, the president still claimed “we have it so well under control.” Unfortunately, When the US government finally announced a lockdown, some Americans were against the policy and went on with their daily lives. This also contributed to why the virus went out of hand.

HOW IT HAS AFFECTED FRONTLINE WORKERS

Battling a deadly virus like the Coronavirus is tough for frontline workers. This sort of pandemic has not happened in decades; hence, it came as at an unexpected time putting healthcare workers on their toes. Frontline workers are vulnerable to distress. Studies have revealed that many frontline workers, especially medical and health workers and nurses, are battling depression, distress, insomnia, anxiety, anger, fear, and posttraumatic stress disorder. According to amnesty international, over 7,000 health workers worldwide have lost their lives to the virus. In the US alone, over 1,077 died after contracting the virus.

WHAT ARE THE EAST, WEST, AND CENTRAL STATE DOING ABOUT THE VIRUS?

Every part of the United States, including the East coast, West coast, and the Central states, are affected by the virus. However, to control the pandemic in this festive season, the governors of California, Washington, and Oregon have advised visitors in their states to be self-quarantined. According to the governor of California — Gavin Newson, “California just surpassed a sobering threshold – one million COVID-19 cases – with no signs of the virus slowing down.” The governor added that “Increased cases are adding pressure on our hospital

systems and threatening the lives of seniors, essential workers, and vulnerable Californians.” Oregon now records over a thousand new cases per day. In his response to curtail the virus, Oregon governor — Kate Brown has announced to close gyms and limit restaurants only to serve takeaways. According to a video the governor shared on social media, she said, “If we do not act immediately, we will soon reach a breaking point.” New York currently has about 653,000 cases with over 34,150 deaths. To curtail the virus on the east coasts, the east coast governors have come together to form a task force. They’re working together to get rid of the virus and put the economy back on its feet. States in the Central United States is one of the regions suffering the most from the Coronavirus pandemic in the United States. For instance, out of the 13.6 million cases in the United States, Texas alone accounts for 1.26 million cases with over 21,968 deaths. The Texas governor — Greg Abbot, has come under heavy criticism for his approach to

The Oxford University/AstraZeneca vaccine is 62 – 90% effective and can be stored at normal fridge temperature.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

the pandemic. Illinois is another Central state battling heavily with the virus. The state has tested about 10.5 million people, out of which 726,304 tested positive and 12,278 have died. However, according to the state of Illinois official website, “Illinois has seen an unprecedented number of unemployment claims during this challenging time, and the administration has moved swiftly to meet this increased demand and expand access to benefits.” It further explains how the Illinois government has been helping its citizens to survive the effects of the pandemic and put the economy back on track. It proceeded, “Since March at the start of the pandemic, the administration has paid out more than $16.5 billion in unemployment insurance benefits to nearly 3 million claimants.”

CONTROL MEASURES

Controlling this rampaging pandemic requires a reduction in physical interaction. Thus, the World Health Organization (WHO) gave guidelines on how the virus can be managed from spreading and causing further chaos. Among their guidelines is that people should stay at least six feet away from others. This is important because even a healthy-looking fellow may have contracted the virus and can spread it to any nearby person even without

On the other hand, the Pfizer/BioNtech vaccine is 95% effective and can be stored at a very low temperature of -70C.

WWW.THEPOWERISNOW.COM

showing any symptoms of the virus yet. Thus, to ensure the proper implementation of these guidelines, governments around the world, including the US government, announced a lockdown. This entails that businesses are closed and social places locked down.

EFFECTS OF THE LOCKDOWN

With businesses locked down, roads closed, and movement restricted, the world’s economic activities were primarily affected. Many people in the United States and other parts of the world lost their jobs, and the US government was forced to provide relief packages to businesses and individuals. Several sections of the economy were affected, including the real estate industry. With a lack of funds in circulation, there was not enough money for investors to purchase properties. Thus, with a low demand comes a fall in property prices. Therefore prices of properties, just like many other commodities, were largely affected, and they sell at low prices.

THE SEARCH FOR VACCINE: US WITHDRAWAL FROM THE WHO

While the world is still in shock of the Covid-19, the US government, under the Trump administration, announced its withdrawal from the World Health Organization effective July 6 2021. In May this year, President Trump said “We

The Moderna Vaccine can be stored at -20C for up to six months, and it is 95% effective.

will be terminating our relationship with the World Health Organization and directing those funds to other global public health charities.” Over the years, America has always been one of the biggest donors to the WHO. With more resources comes more research for the WHO and America has been helping with that. Unfortunately, America withdrew its support. This came due to an accusation by the United States government, claiming that the WHO has failed in its response to the pandemic and on other health issues. It further accused the WHO of not demonstrating its independence from the Chinese Communist Party. President Trump said “China has total control over the World Health Organization,” and that the organization has come under pressure by China to “mislead the world.” Following this announcement, the US government came under heavy criticism for taking such a decision in the middle of a global crisis where all hands are expected to be on deck. However, the US government stuck to its decision and announced it would look for a better partner it can trust. Nevertheless, there seems to be hope that the US will continue to work with the WHO. The United States president-elect — Joe Biden, had announced it would reverse Trump’s decision before the withdrawal process was complete. The US will continue to maintain its good relationships with the World Health Organization. Mr. Biden was quoted on his official Twitter account saying “On my first day as President, I will rejoin the WHO and restore our leadership on the world stage.”

combat any trace of the virus in the system. Therefore, there will be no new cases any longer. The question now is, how close are we to the vaccine? There has been a significant breakthrough in developing the Coronavirus vaccine; hence, we can expect them anytime soon. Among the top researchers that have recorded breakthroughs in developing the vaccine are Oxford University/AstraZeneca, Pfizer/BioNtech, and Moderna. The Oxford University/AstraZeneca vaccine is 62 – 90% effective and can be stored at normal fridge temperature. On the other hand, the Pfizer/BioNtech vaccine is 95% effective and can be stored at a very low temperature of -70C. The Moderna Vaccine can be stored at -20C for up to six months, and it is 95% effective. These vaccines are still in their preliminary phase and not yet peer-reviewed. However, the fact that they’ve proven to be effective gives us new hope. More so, the Center for Disease Control and Prevention (CDC) has said that “supplies will increase over time, and all adults should be able to get vaccinated later in 2021.” On the part of children, CDC proceeded by saying “a COVID-19 vaccine may not be available for young children until more studies are completed.”

CONCLUSION

As the world is getting prepared for the festive period, we must know that Coronavirus is still very 8n Town and active and no cure for it. Many people are getting infected every day, and a lot of them die every day. Hence, for a safer world free of pandemics, we all should adhere to the laid down regulations while in the festive mood.

WHEN SHOULD WE EXPECT A VACCINE?

According to the Center for Disease Control and Prevention (CDC), “in the United States, there is not yet an authorized or approved vaccine to prevent coronavirus disease 2019 (COVID-19).” However, the best way out of this pandemic is having a vaccine plus an effective treatment. With a vaccine, the body’s immune system can be empowered to 44

References https://www.bbc.com/news/amp/health-51665497 https://abcnews.go.com/amp/Health/timeline-coronavirus-started/ story?id=69435165 https://www.express.co.uk/news/world/1270061/US-lockdown-When-didthe-US-go-into-lockdown/amp https://news.google.com/covid19/map?hl=en-NG&mid=%2Fm%2F09c7w0 &gl=NG&ceid=NG%3Aen https://coronavirus.illinois.gov/s/ https://www.cdc.gov/coronavirus/2019-ncov/vaccines/faq.html

THE POWER IS NOW MAGAZINE | DECEMBER 2020

IRVINE REAL ESTATE MARKET

LOOKING BEYOND 2020 Cornelius Jackson

rvine City is the 107th largest city in the US, located in the State of California. The 2020 Irvine housing market has been bubbling with housing activities. Looking back, housing prices in Irvine been rising over the past 12 months. And according to Walletinvestor.com, home prices are expected to continue rising past 2020 in Irvine.

On a short-term basis, Walletinvestor.com has the following predictions on housing prices in the Irvine housing market based on the five previous years:

Source: Walletinvestor.com

According to Walletinvestor.com, the median price of an average home in Irvine was $907, 479, while the median listing price per square foot was $504 as of November 23, 2020. Walletinvestor.com forecasts that a long-term increase is expected,

where the predicted price of an average home in Irvine will be $1,025,044 by November 23, 2021. If youâ€™re wondering whether itâ€™s a good decision to invest in Irvine real estate market, Walletinvestor. com predicts that a 5-year investment will yield a profit of about +12.96%. This means that if you invest $100,000 today, you are likely to get a profit of $119,960 by 2025.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Source: Walletinvestor.com

On the other hand, below is the long-term forecast chart for the coming months and years up to 2026, based on all the available median listing prices recorded up to November 23, 2020;

PROPERTY INVESTMENT.

Source: Walletinvestor.com

Latest data from Wallentinvestor.com shows that real estate prices in Irvine and its market environs have been in a “bullish cycle” in the last 36 months. Walletinvestor’s property investment analyst AI predicts a positive trend in the near future and buying a home in Irvine seems to be a beneficial investment.

All the predictions above imply a positive outlook for the Irvine real estate market, which makes it a must-have in your future property investment portfolio. Additionally, remember that this is also the best time to buy a home due to the historically low mortgage rates, which are expected to remain low for a while. Make sure you take advantage of this once-in-a-lifetime chance. WWW.THEPOWERISNOW.COM

Work cited. https://walletinvestor.com/real-estate-forecast/ca/orange/ irvine-housing-market.

Jenny Gonzalez

HOW TO TOUR A HOUSE TODAY: TIPS TO MAKE THE MOST OF VIRTUAL OR IN-PERSON SHOWINGS

ouring a home is the same as going on a first date. It gives you the chance to assess houses and see whether it’s the one, the way a first date gives you a chance to sense whether he/she is the one. Touring a house gives you a chance to picture yourself baking in the kitchen, or opening a beer on that back deck, or watching TV on the couch. A home that is your dream home will get you to envision your life in it.

However, in the current market, with so many houses to see and very little time before they are off the market, the idea of landing your dream home from loaded houses inventory can be overwhelming. When you mention the presence of the COVID-19 pandemic, it becomes even harder to find your dream home. But you don’t need to worry; several tips can help you save time and reduce your exposure to the coronavirus while you hunt for your dream house in the modern-day.

SCHEDULING A HOME TOUR

Most home buyers start searching for their dream home online. But what happens next when you spot your dream home? In the old days, one would have to go through the complex process of contacting the real estate agent who would then contact the home’s listing agent. In other words, the process was time-consuming and tedious. THE POWER IS NOW MAGAZINE | DECEMBER 2020

But in the current times, the process is very straightforward. Once you spot your dream house, you only need to click on the CTA button that will show you all you need to know about the product. Moreover, some listings allow you to schedule a tour on your preferred time and date. The process of scheduling a house tour only takes a few seconds, and you’ll have your tour scheduled.

VIRTUAL TOUR OR IN-PERSON TOUR?

In the modern days, you can schedule to attend your tour virtually. Cool, right. You’re only required to schedule a tour, as usual, choose the virtual option, and the real estate agent will take around the house through live video stream on Google Hangouts, Zoom, FaceTime, or other apps. However, you may be stuck whether to have a virtual house tour or visit the house in-person. According to Realtor.com, virtual tours are faster, easier and the safest. Some may argue that buying a home “sight unseen” is a risky business, but virtual tours are good options to narrow down your options and use less time moving around in search of a house.

WHAT SHOULD YOU LOOK FOR IN A HOUSE WHEN TOURING?

When doing a house tour, whether virtually or inperson, looking from room to room is not enough. According to Realtor.com, there are a few features you should pay attention to in a house. They include; •

•

The HVAC and hot water systems- the age and quality of these systems affect their efficiency. Therefore, they should be on your watch list when touring a house. The exterior- don’t check the inside of the house alone. Also, check out the garage, front and back yards, swimming pools, gardening sheds, and any other structures on the compound. The neighbourhood- always remember that you’re not just buying a home, but its environs also. Remember to check out the neighbouring homes to get a sense of what your life there would be like.

WWW.THEPOWERISNOW.COM

QUESTIONS TO ASK WHEN TOURING A HOUSE

When touring a house, you may want to dive deeper by asking your real estate some questions about the house. According to realtor.com, here are some topics to hit at; •

• •

•

• •

The age of the house, the various systems such as the water heating system and its structural elements such as the roof. Ask about the average cost of utilities over the past 12 months. If any remodeling or renovation works have been done on the house. If so, ask if the proper permits were acquired and if you can see them. If there are any previous insurance claims that would affect insurability and if there are any special insurance policies required for the home. Ask about the home’s listing history, including any price reductions or contracts that failed. If there are any homeowners’ association fees, how to bill the fee and what it covers.

Leave no stones unturned when touring a home. The process is for you to determine whether you can live there or not. Also, don’t let the process of searching for a house wear you out, you can choose to simplify the process through virtual means.

Work cited. https://www.realtor.com/advice/buy/how-to-tour-a-houseschedule-a-home-showing/.

NOBODY EVER TALKS ABOUT INSURANCE! SO WHAT IS THE BEST HOME INSURANCE COMPANY FOR YOU?

Danon Burnside

uying a home is usually a huge investment that makes it crucial to have it insured. However, before you pick a policy, there are a few things to consider. You need to find an insurer with excellent financial strength, excellent customer service, affordable rates, and favourable policy options. To find the right insurer in a market where home insurance providers have the same basic coverage is not a simple task. However, in the same market, you will find insurers that provide more comprehensive coverage and additional protection at a better value than others if you search well. Also, some companies are better in some insurance aspects than others. WWW.THEPOWERISNOW.COM

Below is a list of well-picked companies and their strong points that topped home insurers in 2020, according to Policygenius.com.

1. AMICA: BEST CUSTOMER SATISFACTION.

In 2019 Amica won the top spot in J.D. Powerâ€™s Home Insurance Study for the 18th year consecutively. The company scored a perfect five out of five in four primary categories, including coverage options, clarity and accuracy of the billing process, customer interactions, and the claims experience. Amica is known for its prowess in handling claims which have earned it excellent customer satisfaction ratings. The company also features outstanding perks, that includes a dividend program and network of contractors. Another outstanding feature at Amica is that personal belongings are insured at their replacement cost.

2. SAFECO: BEST FOR REPLACEMENT COST COVERAGE.

Safeco offers guaranteed replacement cost coverage in most states across the country. This means that if under any circumstance you lose your home, youâ€™re entitled to be reimbursed the full rebuild amount regardless of price fluctuations in times of disaster.

Guaranteed replacement cost coverage is crucial, especially if your home is in disaster-prone areas where labour and construction material costs shoot up when a disaster strikes. Safeco features straightforward claim process, robust coverage options and a wide range of insurance products you can choose from.

UPCOMING EVENTS

3. ALLSTATE: BEST FOR POLICY DISCOUNTS.

Allstate features eight discounts for different instances for its customers. When you bundle you home and auto policies with Allstate, you stand a chance to save up to 25%, and 20% if you haven’t filed a claim lately. Allstate also features excellent customer ratings and a user-friendly website and other digital tools.

THE POWER IS NOW EVENTS: HOMEBUYER TOWN HALL - 1ST AND 3RD TUESDAY OF THE MONTH 7:00 PM

4. STATE FARM: BEST FOR FIRST-TIME HOMEBUYERS.

REAL ESTATE ROUND TABLE - 1ST AND 3RD FRIDAY OF THE MONTH 10:30 AM

For a first-time homebuyer who has never encountered an insurance company before, State Farm is the best option, according to Policygenius. com. State Farm’s website features industry-best educational resources, a straightforward quoting process, and a mobile app that allows you to view your policy, pay your bill, and file claims. State Farm also has excellent financial ratings, according to Policygenius.com.

5. USAA: BEST FOR THE US MILITARY AND THEIR FAMILIES.

NATIONAL EVENTS: NAREB NAREB MORTGAGE SERVICES CONFERENCE January 21, 2021

USAA insures only the current and former military members and their families. The company has been continuously rated at the top in its category by A.M. Best with an A++ financial strength rating. Moreover, USAA has been noted by J.D. as providing “claims satisfaction and shopping satisfaction.” USSA also features a variety of discounts to its customers. Additionally, the company covers you in an event where your uniform is damaged or stolen and reimburses you without paying a deductible if were on active duty or deployed.

The next time you’re looking for a home insurance company, take your time to go through all the insurers that best cover your needs and choose wisely. Work cited.

NAHREP FREDDIE MAC – HOUSING AND FINANCE ECONOMIC UPDATE (VIRTUAL EVENT) December 9, 2020 NAHREP NATIONAL CONVENTION & HOUSING POLICY SUMMIT March 8-10, 2021

AREAA AREAA LEADERSHIP SUMMIT 2021 January 13-14, 2020

https://www.policygenius.com/homeowners-insurance/besthomeowners-insurance-companies/.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

ALL COUNTY DOCUMENT SERVICES OFFERING VIRTUAL PARALEGAL SERVICE Low Cost Quality Legal Assistance Payment Arrangements Available

Corona CA Legal Document Preparation Professional Paralegal Services without the high cost of attorney fees. We offer Virtual Paralegal Services to honor the COVID-19 stay-at-home, so no need As to Wildfires comeRage, into Climate the office, we do everything Experts Warn: The Futurethe Wecourts efiling system. online and utilize

Were Worried About Is Here. Since the early 1990s and even before, climate experts • trying Living trust have been to warn the world against the continued • Probate Services environmental pollution. They • Family Law Services have been warning the world • would Divorce that a day come when human beings will sufferfor the Order • Request wrath of Mother Nature due to • Marital Settlement Agreements the continued environmental Services pollution• andCivil plunder of natural resources. Since the beginning of 2020, massive wildfires have been slowing engulfing most parts of the Contact All County Document Services U.S., Australia, and Siberia. The Corona CA today for a free quote! gigantic wildfires have already sent hints of how climate

Legal Assistance You Can Afford! 951-272-5855 951-207-1185 1234 Goldenview Drive Corona, CA 92882

Licensed, Registered and Bonded Legal Document Assistant No: 271 License No: 659119 Notary Commission #2090397

SAN DIEGO REAL ESTATE MARKET OVERVIEW AND FORECAST FOR 2021 Denise Matthis

ost of the housing markets this year have been so unpredictable than in previous years, and the San Diego housing market is no exception. In part, due to the slow sales and also due to the growth in both the number of jobs and the wages. As such, if you are thinking about investing in this housing market, there is something that you need to know about the San Diego Housing market. Nonetheless, one thing you have to always keep in mind is that the San Diego market is full of surprises as the city and its metro are known for their technological prowess, and more people are moving into the city to fill up the vacant job positions or even to start their businesses. One cannot talk about san Diego without mentioning tourism. The city has been known to attract thousands of people from other places, which has significantly boosted its economy; however, we are seeing shifts to courting more professional, biotech, IT, and telecommunications establishing a significant base for the cityâ€™s economy.

ABOUT SAN DIEGO

markets.

San Diego is a walkable city in San Diego County with a population of 1,305,700 people. This makes it the second biggest city in California and places it among the top 10 biggest cities in the country. in terms of growth, San Diego city has been experiencing rapid growth, and its economy remains relatively strong. Nonetheless, in terms of real estate, the city has often been overlooked in favor of other hot markets such as the San Francisco and Los Angeles

Due to this simple fact, this makes San Diego, a perfect investment choice for most people. The city continues to outpace most other cities in the state, especially when it comes to job recovery, which is very good news for the residents of the county and also for the housing markets. The cityâ€™s housing market 2020 continues to be one of the hottest in the nation. In fact, Zillow ranks the city in the 10th position nationwide.

WWW.THEPOWERISNOW.COM

SAN DIEGO REAL ESTATE APPRECIATIONS RATES In the past decade, the appreciation rate has been at 5 to 6%, which puts San Diego in the top 10% nationally in terms of real estate rate appreciations. In the last quarter alone, the appreciation rates in San Diego were at 0.94%, which amounts to a 3.79% annual appreciation rate. Since last year, and despite the public health crisis impacting the world, housing prices have been growing at a moderate speed. On the other hand, rents in San Diego have also recorded a rise year-over-year, rising by 4% as compared to the previous year. Zillow.com surveyed the county’s housing market, and according to the report, San Diego was expected to be among the hottest housing markets in California. However, 29 percent of the people surveyed believed that the San Diego home values were to fall during this year. In over two decades, that is, from 1998 to 2018, the median home values in the county of San Diego rose exponentially by 217%. However, the median household incomes grew only by 77% in the same time frame. SAN DIEGO HOUSING MARKET: MEDIAN HOME PRICES AND THE EFFECT OF COVID-19 Overall, the San Diego housing market remains a seller’s market, and that means that the demand from the buyers is exceeding the current supply of homes available for sale. This is not something new as we all know that the state of California has been struggling to build more units putting upward pressure on the home prices. Home prices have been rising, and during this phase, the market has skewed more in favor of the sellers. Shortage in homes for sale and an increase in the demand for the housing will continue to push the prices even higher. In March this year, the median sold price of existing single-family units was $675,000, which translates to an 8.2% increase year-over-year. As the COVID-19 crippled the world economy, counties in the united states were not spared. Especially given the weight of the ‘shelter in place’ orders. The San Diego housing market has suffered the impact of the virus as buyers are withdrawing from the market and sellers pulling down their listings from the market. The uncertainty created by the virus played a role in slowing down the market activity in San Diego. Additionally, the market has also experienced difficulties in closing due to financial issues as loans and funding have also slowed down. From Early April, sales were relatively down, and the market is yet to recover fully to match last year’s activities. Nonetheless, the market remains relatively very strong.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Adriana Montes WHAT IS A VA LOAN? AND HOW TO QUALIFY FOR VA LOANS

he VA loans became known in 1944 through the original Servicemen’s Readjustment Act. This act was signed into law by the then-president Franklin D. Roosevelt and provided veterans with a federally insured home with no down payment. The government made such an arrangement was made to provide housing and help to the veterans and their families. More than any other program in history, the Servicemen’s Readjustment Act helped improve the welfare of the veterans and their families, helping in the economy’s growth. The VA loan is a mortgage loan made available through a program established by the United States under the Department of Veterans Affairs. Just as the name suggests, VA loans assist service members, veterans, and eligible spouses to own a home. The VA sets everything from the qualifying standards,

mortgage terms, and a portion of the loan. These loans are provided by the private lenders. For eligible applicants, the VA loans can be the easiest key to homeownership, in 2018 alone, 610,512 VA loans were made with an average loan amount of $264,197 the VA loans last year were responsible for a $161.3 billion in mortgages. Even though the VA loans are provided by private lenders, they are partially backed by the Department of Veterans Affairs and the good thing with the VA loans is there is no limit how much money you can borrow, however, there is a limit on how much the VA will guarantee. One benefit of VA loans is that they will consistently offer lower rates than traditional bank financing. But a downside to the loan is the fact that borrowers may only use the VA

THE POWER IS NOW MAGAZINE | DECEMBER 2020

loans for their primary residence, which means you cannot finance your vacation home or an investment property using the VA loans.

VA LOANS ENTITLEMENTS

Typically, VA guarantees a portion of your mortgage through what we call ‘entitlement.’ Under this loans program, there are two types of entitlement offered to eligible veterans: basic and bonus entitlement. The basic entitlement is usually $36,000 or 25 percent of the total mortgage. If you default on the loan, you will get the lesser amount of the two. However, you do not have to use the full entitlement. As the value of the home keeps going up, a home price over $144,000—the maximum loan amount for basic entitlement will face most of the buyers, in such a situation, we use the bonus entitlement. Most home prices hover over $300,000 plus. In 2018, the median sales price for a home was about $315,000; Therefore, bonus entitlement is necessary. This is called the secondtier entitlement. To establish the bonus entitlement amount, the VA uses the National Conventional Financing Conforming loan limit set by the Federal Housing Finance Agency. This year, the FHFA boosted the loan limits to $484,350. In high-priced areas, the limit is higher at $726,525, which is 150 percent of $484,350. VA will only cover 25 percent of the loan amount, then it will subtract the basic entitlement of $36,000 from the balance. What remains is the bonus entitlement money. For example: The VA will cover 25 percent of $484,350, which is $121,087. The VA then subtracts $36,000 (basic entitlement) leaving the borrower with $85,087. Lenders will loan the borrowers four times the amount of entitlement, which means, in our previous example, if you multiply $85,087 by four you get $340,350. If you add the $144,000 VA loan limit from the basic entitlement to the loan amount from the lenders ($340,350) it sums up to a total loan limit of $484,350 which is the same as the national conforming loan limit.

WWW.THEPOWERISNOW.COM

Are you allowed to use your entitlement over one time? Yes! However, this will depend on several underlying factors, for instance, the amount of entitlement you have left, the mortgage amount, the county loan limits, among others. VA Loans Requirements and Eligibility Just as the name suggests, most members of the military, veterans, reservists, and the National Guard are eligible to apply for the VA loans. Also, next of kin, that is the spouses, of the military members who died while on duty, or even because of service-connected disability are eligible for the VA loans. Active members of the military quality for the VA loan after just 6 months of service. Reservists and the members of the National Guard have to wait for about 6 years to apply, if they are called to active duty, their eligibility status changes after just 181 days of service. You may qualify for the VA loans if; • • • •

You have served for 90 consecutive days of active service during wartime. You have served actively for 181 days during peacetime. You are married to a service member who died in active duty. You have been with the National Guard or Reserve for 6 years.

Unlike many other low down-payment mortgages options, VA loans do not require private mortgage insurance. The Federal Housing Administration and the conventional loans with a down payment less than 20 percent require a PMI, which costs the borrower the life of the loan. Conclusion The cost of getting a VA loan is lower compared to other types of low-down payment mortgages, however, they still carry a onetime funding fee that varies depending on the amount of the down payment and the military category. This one-time fee offset the taxpayers’ cost since there is no PMI or a down payment required.

HERE’S MY LIST OF THE MOST AFFORDABLE NEIGHBORHOODS IN OAKLAND Kenneth Session

ocated in Coordinates 37°48′16″N 122°16′15″W, Oakland is a city in Alameda County in the San Francisco Bay Area. This city is situated in California, United States of America. It is also known as “Oaktown” and “The Town.” According to the United States Census Bureau, Oakland has a total area of 77.89 sq mi (201.74 km2). In 2010, it was reported as home to 390,724 people, which rose significantly to 433,031 in 2019 (a reference to the United States Census Bureau). Oakland is one of the most beautiful cities in California, with several incredible neighborhoods. Perhaps you’re considering the option of changing your environment, and you’ve decided to move to a new neighborhood. Oh! Oakland crossed your mind as it is one of the best cities in the Bay area, but you’re discouraged by its expensive lifestyle. If that is the case, relax because you’re in the right place at the right time.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

You shouldn’t be discouraged by the classic and expensive life in the Bay Area. There are several fantastic neighborhoods in Oakland with an affordable lifestyle and a reasonable standard of living. You may want to check out these neighborhoods. They’re a combination of beauty and affordability. Below is the list of the most affordable neighborhoods in Oakland:

JACK LONDON SQUARE

This lovely neighborhood features several beautiful sceneries that will captivate your attention. It also has historic warehouses and 1950s-themed coffee shops. The median home price in Jack London Square is $500s. In this neighborhood, you can still find one-bedroom condos for a cost of $300s.

SOUTH STONEHURST

To locate this fantastic neighborhood, head to East 14th Street Business District. South Stonehurst can be found between Interstates 580 and 880. Therefore, if you reside in this neighborhood, you’ll also have easy access to job hubs in the Bay Area. The median home price in South Stonehurst is $300s. All reference to the United States Census Bureau reports.

Oakland Airport is 1.5. This neighborhood is home to 925 people. The median home value in Oakland Airport is $75,167, while its median income is $48,681. All reference to the United States Census Bureau reports.

COLISEUM INDUSTRIAL

Having a population of 2,132 with a median income of $55,169, Coliseum Industrial is one of the cheapest neighborhoods in Oakland. Home value in the city falls at $169,150, and its cost of living index is 115. If you’re looking for an area with a reasonable home value to income ratio, you can go here. Its home value to income ratio is 3.1. All reference to the United States Census Bureau reports.

FRUITVALE STATION

Fruitvale Station has a total population of 839. The median income in the neighborhood is $49,010, and its rent to income ratio is 0.024. The neighborhood’s cost of living index is 112, and its home value to income ratio is 2.6. All reference to the United States Census Bureau reports.

OAKLAND AIRPORT

This is the cheapest neighborhood in Oakland. The cost of living index of the Oakland Airport is 100. It is situated on the Coliseum-Oakland International Airport line, Oakland, in the US state of California. The home value to income ratio in

WWW.THEPOWERISNOW.COM

References https://en.m.wikipedia.org/wiki/Oakland,_California https://www.homesnacks.com/cheapest-neighborhoods-inoakland-ca/ https://www.neighborhoods.com/blog/the-most-affordableneighborhoods-in-oakland

PLANNING TO BUY IN SACRAMENTO?

YOUR BUDGET SHOULD LOOK LIKE THIS… Robert Langston

acramento is not just an ordinary city; it is California’s capital city, the United States of America. It is located in coordinates 38°34′54″N 121°29′40″W, and its motto is Urbs Indomita (English: “Indomitable City”). Sacramento is one of the best places to invest in properties or purchase a private residence not only in California but in the United States as a whole. Therefore, if you have a plan to buy a home in Sacramento, you’re in the right place at the right time. Here, you’ll learn what your budget should look like to get a suitable property in Sacramento.

WWW.THEPOWERISNOW.COM

However, before we go into that, it is essential you know basic facts about the city you’re planning to invest in. The city was incorporated on February 27, 1850, and chartered in 1920. Today, it has grown to become one of the most notable cities in the US. It features a total area of 99.77 sq mi (258.41 km2). Water covers 2.19% of the city’s total area at 2.09 sq mi (5.41 km2). Land, on the other hand, covers 97.68 sq mi (253.00 km2) (References to the United States Census Bureau). In 2010, the city was reported as home to 466,488 people, and in 2019, the population significantly rose to 513,624 (according to the US Census Bureau). Its population density is 5,258.02/sq mi (2,030.13/km2). Purchasing properties in a city of this nature requires a significant amount of money. According to the Sacramento Housing Market (SHM), most Sacramento homes that are put on sale get multiple offers. Thus, home purchase in the city is highly competitive. Homes in the city sell at about 1% above the listing price. It takes about eight days to sell a

home on listing in Sacramento. Hot homes can sell above 4% list price with a pending period of less than five days.

Now, you must have seen how lucrative it is to purchase a property in Sacramento. Now, what should your budget look like? According to fortunebuilders.com, the median home value in Sacramento as of 2020 is $366,600. On the other hand, the average price of a property in the city is approximately $109,937. This is above the national average. Therefore, with a budget of roughly $400,000, you can purchase a great home in Sacramento. While this might seem to be a high price compared to several other cities in the US, it is little compared to the costs of homes in Sacramento’s neighboring cities. For instance, San Francisco has a median home value of ($1,416,879); for San Jose, the median home value is ($1,052,521). Now you can see that home prices in Sacramento are just a small fraction compared to other cities in its proximity. According to noradarealestate.com, real estate in Sacramento didn’t really feel the Covid-19 effect. At

a time when property values were dropping across the country, property values in Sacramento kept increasing. During the pandemic, the median sales price in Sacramento hit $425,000. Realtors have also forecasted that house prices in Sacramento are not close to dropping anytime soon. Instead, the costs will continue with the upward surge even by next year. Therefore, if you have about a $400,000 budget, you can still find a suitable property in Sacramento. However, it’s better to buy your Desired property soon considering the upward price projection of realtors.

References https://en.m.wikipedia.org/wiki/Sacramento,_California https://www.redfin.com/city/16409/CA/Sacramento/housingmarket https://www.fortunebuilders.com/sacramento-real-estate-andmarket-trends/ https://www.noradarealestate.com/blog/sacramento-realestate-market/

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Eric Hooks

6 WAYS A BUYER MESSES UP WHEN GETTING A MORTGAGE

etting a mortgage to buy a home is a big decision that requires proper planning. If done rightly, you’ll get a good home for a reasonable price. Many home buyers, especially newbies, often mess up and get into the wrong deal. However, it doesn’t matter whether you’re a first time home buyer or you’ve bought a couple of homes in the past; you can still mess things up. This is why you need to understand how things should be done correctly. Avoid the following six mistakes when getting a mortgage:

NOT PATRONIZING A LOCAL MORTGAGE COMPANY

One of the smartest moves to get the best mortgage service is to patronize a local mortgage provider. Such a mortgage provider will understand the real estate market in the locality. This is what top real estate investors do. They look out for local mortgage companies within the locality of where they need property and deal with such a company. For instance, if 74

you need a California property, the right move will be to patronize the mortgage providers in California and not one from other states or cities. If you don’t know where to go or how to find the right local mortgage provider, you can reach out to top real estate agents in the neighborhood. They’ll have recommendations for you.

NOT UNDERSTANDING THE TERMS AND CONDITIONS OF THE MORTGAGE LENDER Another way buyers mess up when getting a mortgage is not understanding the terms and conditions of the mortgage lender they’re dealing with. Often, this is due to assumptions. They think the terms of all lenders are the same. If they recently dealt with a mortgage lender, they automatically assume that the lender’s terms are the same for other lenders. This is a terrible mistake that you should avoid. Ask your mortgage lender to define in clear terms to you their conditions.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

ADDING TOO MUCH DEBT

This is a significant reason why many home buyers are being denied loans. During the process of obtaining a mortgage, they begin to add too much debt. As such, they will tamper with their Debtto-income ratios. If a mortgage lender sees too much debt higher than what a buyer’s income can afford to pay, they might deny such a buyer the opportunity to get a mortgage. This is a mistake you should avoid when getting a mortgage.

SPENDING TOO MUCH ON A HOME

Legally, mortgage lenders can provide you with a mortgage of up to 35% of your household income. This is where many home buyers get it wrong. They get a high mortgage ignoring the fact that other expenses must still be met from their pay. With a high mortgage, their monthly income will be significantly affected. Before they know what’s happening, the household is left with little to spend after the high mortgage has been removed. The mistake of getting a high mortgage can result in a financial crisis and make a household poor. WWW.THEPOWERISNOW.COM

IGNORING CREDIT SCORE

This is one of the terrible mistakes homebuyers make when seeking a mortgage. Your credit score and history can go a long way in determining whether you will get a loan or not. If your lender is not satisfied with your credit history, you may be denied a mortgage. Therefore, before patronizing any mortgage lender, ensure that your credit score is in order. Not Considering The Cost Of Owning A Home When you decide to get a mortgage to purchase a home, you should also consider other expenses. Besides sorting your mortgage every month, you’ll also need money for maintenance. Many homebuyers don’t look in this direction when getting a mortgage. Thus, they end up running into a financial crisis. References https://www.rochesterrealestateblog.com/12-mortgagemistakes-avoid-buying-home/ https://www.interest.com/mortgage/the-7-biggest-mortgagemistakes/ l

www.StopHigherPropertyTaxes.org

Split-Roll Property Tax Measure Hurts Immigrant and Minority Communities

Background: Prop 13 Has Helped All Californians for More Than 40 Years •

For more than 40 years, Prop 13 has provided certainty to homeowners, farmers and businesses that they will be able to afford their property tax bills in the future. Under Prop 13, both residential and business property taxes are calculated based on 1% of their purchase price, and annual increases in property taxes are capped at 2%, which limits increases in property taxes, especially when property values rise quickly.

Split-Roll Property Tax Measure Destroys Prop 13 and Makes Our Economic Crisis Worse •

•

Amid an unprecedented economic crisis, special interests submitted petitions to qualify a measure for the November 2020 statewide ballot that will destroy Prop 13’s property tax protections and will be the largest property tax increase in California history. The measure will raise taxes on commercial and industrial property by requiring reassessment at current market value at least every three years. This type of property tax is known as a “split-roll tax” because it splits the property tax roll, assessing business property differently than residential property. We should reject this measure and maintain Prop 13 protections that have kept property taxes affordable and provided every taxpayer who buys a home or business property with certainty that they can afford their property tax bills in the future. Now is not the time to raise taxes and bring more uncertainty to businesses and all Californians.

Gentrifies Our Longtime Communities •

A split-roll property tax will provide a huge financial incentive for local governments to approve business projects to replace existing housing so they can receive higher property tax revenue. It will also push small minority- and immigrant-owned businesses out of our communities when they can’t afford the higher property taxes. This unintended consequence will intensify the gentrification already occurring in much of the Bay Area and Southern California coastal counties.

Hurts Small Businesses and Consumers •

Most small businesses rent the property on which they operate. The measure’s higher property taxes will mean soaring rents at a time when the federal and state government is trying to provide small businesses with rent relief to keep their doors open. Ultimately, the measure’s tax hike on businesses will get passed on to consumers in the form of increased costs on just about everything people buy and use, including groceries, fuel, utilities, day care and health care.

Hits Minority-, Immigrant- and Female-Owned Businesses the Hardest •

•

Small businesses are already struggling. This measure will make it even more difficult for them to reopen their doors or stay in business as a result of this economic crisis. Increasing property taxes on businesses by up to $12.5 billion a year will hurt female- and minority-owned businesses the most and 120,000 jobs will be lost, according to a Berkeley Research Group study. Voters are being asked to consider a measure that will only increase job losses at a time when millions of Californians are applying for unemployment benefits. According to the latest data from the Harvard Business School, about 42% of new companies are founded by immigrants in California and the most recent 2012 Survey of Business Owners by the Census bureau found that 5% of businesses in the state are owned by African Americans. Additionally, the California Latino Economic Institute found that nearly one-quarter of all businesses in California are owned by Latinos, and they are the fastest-growing component of the state’s economy. Most of these businesses start small and stay small, meaning they often rent their property and are subject to higher rents when property taxes increase. In the most recent 2012 Survey of Business Owners by the Census Bureau, 38% of all non-publicly traded businesses were owned by females and another 9% were owned equally by females and males.

Increases the Cost of Living for Everyone and Makes the Homelessness Crisis Even Worse • •

In 2019, US Housing & Urban Development data showed California led the nation with more than one-quarter of the country’s homeless population. California’s cost of living is already among the nation’s highest. We shouldn't do anything to make it even more expensive to live here. The split-roll measure will only increase homelessness and make life more difficult for Californians already living paycheck-to-paycheck.

Homeowners Are Under Attack • If businesses lose their Prop 13 protections, homeowners will be next. Supporters of the measure even admitted

that this initiative was the first step in a plan to end Prop 13, which could mean skyrocketing property tax increases for all California homeowners.

Ad paid for by Californians to Save Prop 13 and Stop Higher Property Taxes, sponsored by California homeowners, taxpayers, and businesses Committee major funding from Western Manufactured Housing Communities Association California Business Roundtable California Taxpayers Association Funding details at www.fppc.ca.gov

Briana Frazier

WHITTIER & LA HABRA:

WITH HOUSING SO EXPENSIVE IN LA, MAYBE RENTING IS NOT THAT BAD AFTER ALL

os Angeles is one of the most expensive places to reside in California and even in the United States. Home prices in the city are one of the most expensive in the US. For this reason, many residents are often stuck between whether to purchase a home or to continue paying for rentals. Several analysis has been done by real estate professionals in this regard with some in favor of rentals and others in favor of purchases. The truth is that they both come with their advantages and disadvantages. For instance, if you get a mortgage to purchase 78

a home in Los Angeles, you’ve made a significant investment that will yield in the long run. Once you sort your mortgage, you can decide to sell the house at a better price; then, you can purchase another property of your choice at a cheaper rate. However, such a decision comes with a great sacrifice. You won’t be able to meet some of your expenses again if your income remains the same. A significant portion of the income will go for a mortgage, and you won’t have much to spend. Therefore, the decision to either stick to a rental or purchase a

home depends on individual circumstances and perspective. Nevertheless, there was a report by Attom Data Solutions — a real estate analyst. This report revealed that renting is a better option for buying in Los Angeles and several other notable cities. According to the report, a three-bedroom apartment in Los Angeles costs about $630,000. According to him, a 3.5% down payment for a house in Los Angeles will cost $3,062 per month if the interest rate remains unchanged. Therefore, if you decide to purchase a three-bedroom apartment in Los Angeles with a median price of

THE POWER IS NOW MAGAZINE | DECEMBER 2020

$630,000, you’ll have to pay $3,062 as a mortgage. Now, here’s the kicker. That money doesn’t include mortgage insurance and property tax. If you add the two payments with the mortgage, your monthly expenses will skyrocket. What if you decide to rent a property? Attom Data Solutions further explained that renting the same three-bedroom apartment in LA isn’t cheaper as well, but it’s fairer. He explained that renting a three-bedroom apartment in LA cost about $2,593 monthly. This doesn’t come with mortgage insurance and property tax that you pay as a homeowner. According to the United States Census Bureau, the median household income in Los Angeles is $62,474. If a family with a household income of $62,474 rents a three-bedroom apartment, they’ll be required to pay about 50% of their income on housing. On the other hand, if they decide to go for the purchase option and purchase the three-bedroom apartment, about 86% of their earnings will be used to sort mortgages.

city such as Los Angeles. However, if you sit back and analyze your expenses, you can choose for yourself the most suitable one.

References https://la.curbed.com/2019/1/16/18184394/rent-buy-losangeles-which-is-cheaper https://la.curbed.com/2018/4/24/17272564/rent-or-buywhich-is-better-los-angeles

The report suggested that rental is better for residents of Los Angeles than buying a home. However, an essential point the report failed to address is that with every monthly payment of those who purchase a house, they get closer to permanently owning the house. Rentals, on the other hand, have no hope of owning the home. The landlord may also decide to let go of them for any reason; hence, they may have to find a new location to reside. Now you’ve seen things from both perspectives. The decision to buy or rent a house is a critical one, especially in a WWW.THEPOWERISNOW.COM

Adrian Bates THE 5 MOST CRUCIAL HOME MAINTENANCE SKILLS EVERY HOMEOWNER SHOULD KNOW Owning a home is beautiful, but maintaining is what makes it challenging. The good news is that your home maintenance doesn’t have to be challenging at all times. You necessarily don’t have to spend on hiring a technician to fix everything in your home. There are several things you can do by yourself, hence, saving you some money. Whether you already own a house or you plan to own one soon, the following are the five most crucial home maintenance skills you should know:

CLEANING GUTTERS

Do you know that a damaged gutter can result in building collapse? Well, this might not be logical to you, but it is the truth. When your gutter is damaged or Clogged, there won’t be free water flow down from your roofing. Gradually, water will begin to be retained on your roofing. If your roofing is made of metal, it’ll start to rust. Rusty roofing will begin to leak, and a leaky roof can damage a building. Through pores in your damaged gutter, water might start to travel through your walls down to your foundation. When there are freezing temperatures during winter, the stored water might get frozen. This might cause your foundation to crack, and it may eventually lead to building collapse. Now it sounds logical,

WWW.THEPOWERISNOW.COM

right? This is why you need to take good care of your gutter. Gutter Inspection and cleaning is a skill you should know as a homeowner. If you do, you won’t feel bothered to spend on inspection because you can do it yourself. Gutter inspection is not a difficult skill; it is something you can do if you’re comfortable working on the ladder.

PIPE AND PLUMBING

There are some essential plumbing skills you should know how to do as a homeowner. Among such skills is replacing a faulty tap. Replacing a defective faucet may cost you hundreds of dollars if you hire a professional plumber. Interestingly, this is something you can do yourself. All you need is to get a new tap, close the pipe supplying water

to the faucet, and lose the tap. You can lose most taps with a bare hand. Once you do this, replace it with your new faucets. Ensure it’s adequately tightened and open your pipe again. Here you go, you’ve fixed your faulty pipes without paying a plumber.

CHANGING OF BULB Those who know how to replace a faulty bulb might be surprised that it makes a list here. Well, there are several homeowners out there who need an electrician to do this for them, not because they’re not chanced, but because they don’t know how it’s done. Changing a faulty bulb is an essential skill that every homeowner should learn. All you need is to purchase a new bulb, put off the switch, and gently remove and replace the faulty bulb.

CHANGING FILTERS If you have an HVAC system in your home, you need to know how to change its filters. The filters help to collect dust and pollen. You should regularly remove and replace your filters monthly or at least every three months. This easy skill will make your HVAC system work smoothly and help you cut energy bills.

HOW TO CONTROL THE MAINS This is an essential skill you must know. For instance, if there’s an electrical accident in your home, such as electrocution or sparkling wires, you can save a life and protect your home by simply putting off the mains before you call 911. Putting off the mains will shut down the electric supply in your home. If you don’t know how to do any of these, you can go online and learn. You can watch YouTube videos as well. They are essential skills you should know.

Success Money

FHA LOANS NOT FOR EVERYBODY BUT MAY BE PERFECT FOR YOU What is an FHA Loan? This is a mortgage issued by an FHA approved lender and is insured by the Federal Housing Administration (FHA). FHA loans bring the dream of Home Ownership into reach for the home buyers who might find it difficult getting approved with other conventional lenders, therefore, they are designed for the low-to-moderate income borrowers. The FHA loans require lower down payments and credit scores than many of the conventional loans. A person can borrow up to 96.5 percent of the home value with an FHA loan, however, you will need to have a credit score of at least 580. If your credit score falls between 500 and 579, you can

still qualify for the FHA loan as long as you make a 10% down payment. FHA loans are very popular with first time home buyers since the down payment may come from a family member or a financial gift.

The History of FHA Loans Congress created the Federal Housing Administration in 1934, during the Great Depression. The housing industry was in trouble with the defaults and the foreclosure rates skyrocketing. The loans were limited to 50% the value of the property, the mortgage terms included short repayment periods fueled with â€˜balloon paymentsâ€™ which were troublesome for many of the borrowers to meet. In an effort to stimulate the housing market, the government created a federally insured loan program that would reduce the lender risk and made it easier for the borrower to qualify. After its creation, the homeownership rates in the U.S. steadily rose, reaching an all-time high of 69.2% in 2004. The first quarter of 2018 recorded a slightly lower value than that of 64.2%. From 1934 to 1968, just after the passing of the Civil Rights Act and the Fair Housing Act less than 2% of all Government loans were made to African Americans or people of color.

Are FHA loans for everybody? THE POWER IS NOW MAGAZINE | DECEMBER 2020

The loans are offered to low-to-moderate income individuals with credit scores of as low as 500. Assuming that your credit score is between 500579, you can still qualify for the FHA loans provided you make a down payment of 10%. However, if your credit score is 580 or even higher, you can get an FHA loan with as low as a 3.5% down payment. Letâ€™s compare this to the conventional loans, with a credit score of at least 620, you will need a down payment of at least 3% and 20% to qualify. Rather than using the credit report, some lenders may look at your work history for the past two years. Also, they may look at your other payment records, for example, utility and rent payments. If you have gone through bankruptcy or foreclosure before, you can still qualify for the FHA loans provided you have re-established good credit. The lower the credit score and down payment, the higher the interest rate on the mortgage. Unfortunately, many lenders have added credit requirements to the FHA underwriting guidelines that have made it more difficult to borrow than the government intended. Lender credit overlays have had a disparate impact on people of color who represent the largest share of borrowers with minimum credit scores and cash reserves to buy. Add this to discriminatory practices by lenders and banks from 1934 to the present and you can see why the rate of a homeowner is the lowest among minorities in addition to African Americans.

Benefits of FHA Loans The FHA Loans are not perfect for everybody, however, they are an excellent fit for some situations. One of the main appeals is that they make property buying very easy. Remember that these benefits have potential tradeoffs. 1. Small down payment FHA loans allow you to purchase a home with a down payment of as low as 3.5%. For other conventional loan programs, you will require a larger down payment or a higher credit score to get approved with a small down payment. 2. Assumable loans A buyer can take over your FHA loan if it is assumable. An assumable loan is a loan that you can transfer the mortgage to somebody

WWW.THEPOWERISNOW.COM

else. They can pick where you left off, benefiting from the lower interest costs. Depending on whether the rates change or not, by the time you are considering to sell, the buyer might also enjoy a low-interest rate which is unavailable in the current environment. 3. Home improvement and repairs Some certain categories of the FHA Loans can be used to pay for the home improvements, through programs such as the FHA 203K program. If you are buying a property that may need upgrades, the programs make it easier for you to fund your purchase and improvements with just one loan.

How much can you borrow? There is a loan limitation that has been established by FHFA (define) but there are no income or sale price limitations. The limits are set by the region in which one lives, with some areas having a lower limit than the usual FHA loans and the higher cost areas having higher limits. There are special exceptions areas such as Alaska, Hawaii, Guam and the Virgin Islands where higher construction cost require higher loan limits. In all other regions, the limits are set at 115% of the median home price for the county. This is determined by the U.S. Department of Housing and Urban Development.

Bottomline While the FHA Loans sounds great, they are not for everybody. People who have their credit less than 500 will usually not be eligible for the FHA loan. If you are a borrower and you can afford a larger down payment, you may be better off with the conventional mortgage. This could help you save more money in the long run through a lower interest rate and mortgage insurance premium that the conventional lenders provide. You can contact The Power Is Now to talk to an FHA advisor to determine whether this type of mortgage is the right one for you.

Sources www.fha.com

THIS IS THE CREDIT SCORE YOU TYPICALLY NEED TO TAKE OUT A MORTGAGE

Joe L. Fisher

redit scores and reports can be confusing to most people especially the first-time home buyers. When preparing to purchase a home, it is important that you first understand your credit score and how it affects your mortgage application. The Power Is Now and First Bank have partnered to bring you free homebuyers’ seminars. Very interactive and informative seminars meant to prepare you for the homebuyers’ journey. Find out more about our seminars here. Regularly reviewing your credit report should be on top of your financial habits. A credit report reveals your financial background, helping you assess the personal payment history. your score is more than just a number, it determines a lot more than the loans you can get and the interest rates you will pay. Most insurance companies use credit scores to set premiums for auto and homeowner coverage. In addition, landlords use the credit score to determine who will stay in their homes. Therefore, if you didn’t take your credit score seriously, you better start doing it. credit scores are a financial tool; however, they can be a hammer or a lever, it depends on how good they reflect. If you are thinking of buying a home now or in the next few years, the credit score will play a significant role, so I suggest you start working on them. According to a Federal Reserve Report, 90% of the U.S mortgages taken out in the first quarter of 2019 were by home buyers who had a credit score of at least 650 and 75% had a score higher

than 700. The report further notes that only 10% of the mortgage borrowers had a credit score under 647. The median credit scores this year sits at 759. Here are the minimum credit score requirements for the conventional, FHA, VA and USDA mortgage program; MORTGAGE TYPE FHA

USDA Conventional

CREDIT SCORE 500 (with 10% down payment) 580 (with 3.5% down payment) No set minimum (entire loan profile reviewed instead) 580 (if eligible for a credit exception) 640 (for automatic approval) 620

The national average stands at 704. And any score falling between 700 and 749 is deemed as “good” while the scores falling between 650 and 700 are “Fair.” Scores that are 750 and above are excellent scores. In most cases, the lenders will not issue you a mortgage if your credit score falls below the minimum threshold of the scores listed above. Most lenders work with a finite budget; therefore,

THE POWER IS NOW MAGAZINE | DECEMBER 2020

it is very common for them to sell the loans they make t another company. They do not have unlimited funds to grant loans to every new applicant as they wait for 30 years for you to pay back your loan. To avoid this, most lenders will package their loans and sell them on the secondary mortgage market. Large companies such as the banks or the government-sponsored enterprises purchase these loans and resell them. It is still possible to qualify for a home loan with a rate lower than the median, a higher credit score simply means better interest rates and loan options. Other factors can also influence the mortgage-approval process. This includes the cost of the home, the size of the down payment and your income.

MORTGAGE AFFORDABILITY

there are so many factors that go into play when deciding on the mortgage affordability, it isn’t just about the credit score. Most of the lenders will want to see if you are able to afford your mortgage before they lend you money. Therefore, to minimize risk on their part, aside from looking into your credit history, they will also look at how much money you earn and how much money you spend. And not just the credit repayments but also the regular, fixed costs like childcare and other outgoings you have on a monthly basis.

IMPROVING YOUR CREDIT SCORE

The first step towards building and improving your credit score is to pay all your bills on time and in full. Your payment history makes up 35% of your FICO score. Most lenders will look if you have paid your bills on time for each account on your credit report. It is important to set your bills on auto-pay and keeping a tab on your payments to ensure that you make routine and on-time payments. By paying all your debts in time, is a good start, but what if you have reached the breaking point? FICO scoring considers your credit utilization ratio where it measures how much debt you have compared to the available credit limits. Here, the system looks at how much of your total available credit you have used, and as a precautionary measure, do not assume that you have to have a $0 balance on your accounts to score higher, nonetheless, less is better, but owing a little bit of debt can be so much better than owing nothing at all. Lenders will want to see if you borrow money if you are responsible and financially stable enough to pay the money

WWW.THEPOWERISNOW.COM

back. The amount you owe could earn you up to 30%. One other important factor that you have to consider and I emphasis on this is the length of the credit history. the credit score also takes into account how long you have been using credit. For how many years have you had obligations? How old is your oldest account and such like considerations? Long credit history will streamline the numbers and if not marred by late payments, it could really boost your credit score. That’s not to say that a short one is disqualified altogether, if you have been paying your debts on time and you don’t owe much, your credit score will improve. If you have been following the news, you must be aware that patterns in credit have really changed dramatically over the last few years. But still, I think the credit system in the country is a flawed system. It takes much time to build your credit, and you have to work much harder to maintain that credit. Don’t get me wrong, credit scores are important but they would really be beneficial if they cut across every racial divide in this country. I believe the system has for a long time held hostage the minority groups in the country and that’s why you will find a very large gap in wealth creation between the whites and almost all other minority groups. I’m trying to think what happened to the people who were hit by the 2008 financial crisis? Most of these people are now homeless. That’s exactly what the system has done to most people. I think the credit reporting system in the country should be revised effectively, credit scores no matter how important they are, they should not be the deciding factor for a mortgage. Just because a person has a low credit doesn’t mean that they are financially irresponsible. Think about that. Works Cited www.cnbc.com/2019/07/15/median-credit-score-mortgage.html. https://www.facebook.com/asklizweston www.nerdwallet.com/blog/finance/great-credit-powerful-tool/. blog.hellobloom.io/10-problems-with-credit-in-the-united-statesa4103ba8e86. www.quickenloans.com/blog/do-you-know-your-credit-score-and-whyits-important. www.investopedia.com/articles/pf/10/credit-score-factors.asp. www.experian.co.uk/consumer/mortgages/guides/credit-andmortgages.html. www.magnifymoney.com/blog/mortgage/credit-score-needmortgage/. www.lifelock.com/learn-credit-finance-what-is-credit-report.html.

BIDEN’S TRANSITION TEAMS BRINGS IN BACK KEY CFPB PLAYERS:

WHAT DOES THAT MEAN?

ow that the American people have decided and chosen former vice president Joe Biden to lead the nation effective from January, a lot is already underway. Although President Donald Trump is yet to concede defeat and the election result is still being challenged. However, President-elect Joe Biden has spared no time at all. He’s already putting in place his transition teams in preparation for the January 2021 Inauguration. Biden brings in back key players to be a part of his Transition team for the Consumer Financial Protection Bureau? One of the key players is the hand-picked successor of former CFPB Director Richard Cordray — Leandra English.

Transition Teams for the Consumer Financial Protection Bureau. The occurrence that led to her being denied the position of directorship under Trump seems politically instigated. Also, her presence in Biden’s Transition Teams looks political. Whichever way it is, English appears to be qualified for the position. If she later becomes the director of CFPB under the Biden administration, she can utilize her experience as the CFPB chief of staff and deputy director to provide the excellent leadership that the CFPB needs.

Biden bringing back English may also mean that he needs people we already know and recently worked with to form his new team. Remember that President-elect Joe Biden served as vice president under President Barack Obama. Since the administration was tagged successful by many Americans and ranked among the best in America’s history, Biden may also need the people This automatically makes English the right candidate for the he had a history working with to come aboard again. English has been in the CFPB CFPB director after Cordray stepped down. Unfortunately, for years and contributed to the success of President Trump didn’t agree to this. He, instead, went the Consumer Financial Protection Bureau ahead to appoint Mick Mulvaney — former acting director under the Obama/Biden administration. of CFPB. Therefore, it will be logical, defendable, and justifiable for Biden to bring him aboard English took the case to court, resulting in a tussle again. regarding who is the real director of CFPB. Unfortunately, English lost the battle when the verdict was given, and it Nevertheless, English is not the only key was against her. Rather than giving up, English further took the case to the U.S. Court of Appeals for the District of member of key CFPB Players in Biden’s Transition Team, but, of course, she’s the Columbia Circuit. most popular of them all, and the likely one to be the next CFPB Director. English later gave up the fight when Kathy Kraninger was Considering the occurrence that led to the emergence of the current CFPB Director under President Trump, it is logical to expect that a new director will emerge should Biden become president. In 2017, the immediate former director of CFPB — Richard Cordray, stepped down. However, before his step-down, he already promoted English to the deputy director’s position from the chief of staff.

officially named as a permanent replacement for Cordray’s permanent as CFPB Director. English then left the CFPB.

Now, there seems to be hope again for the former deputy director as she has been called upon to be a part of Biden’s 92

References https://www.housingwire.com/articles/bidentransition-team-brings-back-key-cfpb-players/amp/ https://debtconnection.com/biden-transition-teambrings-back-key-cfpb-players

THE POWER IS NOW MAGAZINE | DECEMBER 2020

onsidering the significant impact of Covid-19 in the world’s economy, including the housing markets, countries are now working relentlessly to ensure that their economies are back on their feet. The virus mostly hits the US, and it is still battling with it to date. Prices of properties in the United States have been significantly affected by this global pandemic, and something has to be done to return things to normal. It is on this basis that The Federal Housing Finance Agency has finally decided to validate and approve classic FICO for Freddie Mac and Fannie Mae. Such approval means that Fannie Mae and Freddie Mac can now use the classic FICO credit score model.

FHA DECISION TO APPROV FREDDIE MAC AND FANNIE THAT DECISION WEIGH ON

There’s a provision in the regulatory reform law S. 2155 that mandated evaluating a new credit score model. Therefore, the approval is constitutional. With this approval, Fannie and Freddie are now allowed to continue providing every necessary support required by the mortgage market. It’ll also help to access other modern credit score models. The question now is, how much does that decision weigh on the housing market? Will it be able to make a significant impact or not? To answer this question, it is better first to understand the role of Fannie Mae and Freddie Mac in the housing market. When you hear Fannie Mae and Freddie Mac, they refer to two federally-backed home mortgage companies in the United States. The US Congress created these companies to serve a vast number of purposes in the US housing market. They buy and guarantee mortgages from lenders. They hold the purchased mortgages with them in their portfolio. They also transform the loan into mortgage-backed securities (MBS), which will then be sold to interested investors. Fannie Mae and Freddie Mac play crucial roles in America’s housing finance system. Their primary goal is to provide stability and liquidity in the mortgage market. They also ensure that properties are well regulated and affordable. They provide liquidity to institutions that offer loans to finance housing. Such

THE POWER IS NOW MAGAZINE | DECEMBER 2020

VE CLASSIC FICO FOR E MAE. HOW MUCH DOES N THE HOUSING MARKET?

institutions include mortgage companies and banks. Now, you should begin to understand how the FHA’s decision to approve classic FICO for these two government-owned companies can affect the housing market. Such a decision can help stabilize mortgage markets, especially at this time of global crisis. That is one of the significant reasons why Fannie Mae and Freddie Mac were introduced in the first place. They are there to provide the housing market the required protection for the housing market when the economy is threatened, as the country is witnessing today. Furthermore, the decision will help ensure that there’s the availability of mortgage funds across the country. With such availability, investors and homebuyers will have enough money to get the property of their choice; thus, there’ll be enough money circulating in the property market. By approving classic Fico for Freddie Mac and Fannie Mae, mortgage providers, especially banks, will have access to more funds that can be provided to mortgage lenders. Mortgage lenders will, in turn, be able to purchase their desired properties. With such a trend, the housing market will begin to thrive again, and it’ll eventually be able to stand firm again after a long period of a global pandemic.

References https://www.investopedia.com/articles/economics/08/fanniemae-freddie-mac-credit-crisis.asp https://www.fhfa.gov/SupervisionRegulation/ FannieMaeandFreddieMac/Pages/About-Fannie-Mae--Freddie-Mac.aspx https://bankingjournal.aba.com/2020/11/fhfa-validatesclassic-fico-for-fannie-mae-freddie-mac/ fa.gov/mobile/Pages/public-affairs-detail. aspx?PageName=FHFA-Announces-Validation-of-ClassicFICO-for-Use-by-Fannie-Mae-and-Freddie-Mac.aspx

WWW.THEPOWERISNOW.COM

COVID-19: JUST HOW CLOSE ARE

WE TO A VACCINE? “How close are we to a vaccine?”

This is the question on the lips of almost every individual of the seven billion people on planet earth. The question of how close we’re to a vaccine is of great importance to everyone worldwide. From business people, teachers, pupils, restaurant owners, construction workers, to every individual who feels ripped off their freedom of association and movement. The work of developing a COVID-19 vaccine began in January in various research centers and institutions. As early as March, rumors of the unveiling of a possibly effective COVID-19 vaccine had already started emerging, with UK Boris Johnson stating they “would turn the tide in 12 weeks and send the coronavirus packing.” Elsewhere, different organizations and drug manufacturers were boasting of having a vaccine by September. However, as of now, no COVID-19 vaccine is actually ready. Not that those who were boasting of having a vaccine by September were wrong, but the process of making a vaccine is not a walk in the park. The process is quite complex and has a lot of formalities. Vaccines require years of thorough research and testing before being approved for distribution to health centers. However, in this case, scientists are racing to come up with a safe and effective COVID-19 vaccine by 2021.

WHERE ARE WE WITH THE VACCINES?

According to The New York Times Coronavirus Vaccine Tracker, researchers are were testing 54 vaccines in clinical trials on humans, while at least 87 preclinical vaccines were under active investigation in animals, as of November 18, 2020. The vaccine tracker further reveals the progress in developing the vaccine among various companies. On November 13, 2020, a vaccine from OncoSec Immunotherapies enters Phase 1, which involves safety trials. At this phase, researchers try the vaccine on a small number of people to test its 96

safety and dosage and confirm if it stimulates the immune system. On November 16, 2020, a vaccine from Inovio proceeds from Phase 1 to Phase 2. Phase 2 involves expanded trials, where scientists give the vaccine to hundreds of people divided into groups, such as children and older people, to determine if the vaccine reacts differently in them. On November 16, Moderna reports promising early results. The company announced that its vaccine has shown to be 94.5% effective. From their trials, of 95 participants who had COVID-19, 90 had the placebo, and only five had the vaccine. Earlier on, Moderna found out that the vaccine protects monkeys from COVID-19. Moreover, Moderna found another promising result from the vaccine that it appears to protect people from severe disease. Out of 11 who developed severe disease, none were vaccinated. Moderna plans to submit an application for an Emergency Use Authorization in the coming weeks. More recently, on November 18, 2020, Pfizer announces that its coronavirus vaccine is 95% effective. Pfizer, who are working with BioNTech, have two versions of mRNA vaccine. On undergoing trials, they found out that both versions caused volunteers to produce antibodies against SARSCoV-2 and immune cells known as T cells that respond to the virus. All the companies that have reported a possible breakthrough in their vaccines have already started inking hefty deals from countries across the world. So far, there are strong signs of a possible breakthrough of more than one coronavirus vaccines by the end of the year. Meanwhile, let’s keep the hopes high without forgetting to observe the correct safety measures to keep ourselves safe. Work cited. https://www.nytimes.com/interactive/2020/science/ coronavirus-vaccine-tracker.html.

THE POWER IS NOW MAGAZINE | DECEMBER 2020

Hello Christmas... But wait “Kwanzaa!” It’s almost that time of the year again when everywhere will be decorated with lovely lights. December is almost here, the month of celebration. Several enjoyable occasions come in December, including the Christmas party and Kwanzaa. In most countries worldwide, they will only be looking forward to December 25 — Christmas day to have fun. Once the Christmas celebration is over, then, they return to their daily activities and begin to look forward to the January 1st new year celebration. This is the same in the United States, but for some minor African-American communities, there’s more to that. Besides the Christmas celebration on 25th, there’s another celebration that commences from December 26th to January 1st — Kwanzaa. Kwanzaa is celebrated by sharing gifts to loved ones and neighbors coupled with a fist of faith, called Karamu Ya Imani. It was first celebrated in 1966 following its creation by Maulana Karen ga. Therefore, in many African-American communities, they make special preparation for Kwanzaa as they also prepare for Christmas. The significance of this celebration is to promote African heritage and to embrace unity and culture.

Considering the spirituality attached to the Kwanzaa celebration, many Christians often distance themselves away from the celebration even in the black community where it is meant to be celebrated. It is a common practice that those who celebrate Kwanzaa don’t celebrate Christmas, and those who celebrate Christmas don’t celebrate Kwanzaa. However, some people celebrate the two. It is seen as an alternative to Christmas, but for those who celebrate both they believe that the two are just ordinary celebrations of love and none should be discriminated against. Those who celebrate Christmas and Kwanzaa believe that Kwanzaa is a cultural holiday and not religious. Therefore, they believe that it doesn’t snatch away your faith regardless of religion. Besides the black American communities, some other minor communities also adopt the celebration of Kwanzaa. The Kwanzaa celebration is centered around seven essential principles. These principles include unity (Umoja), collective work and responsibility (ujima), self-determination (kujichagulia), cooperative economics (ujamaa), creativity (kuumba), purpose (nia), and faith (Imani). The celebratory symbol of Kwanzaa is a mat (Mkeka). On this mat are placed other symbols, including mazao (crops), kinara (candleholder), kizomba cha Umoja (unity cup), Zawadi (gifts), muhindi (corn), and mishumaa saba (seven candles). Over the years, there has been a decline in the celebration of Kwanzaa, and this can be traced back to the role of the black separatist movement. Today, only a few people celebrate Kwanzaa in the United States. Many young black Americans today WWW.THEPOWERISNOW.COM

have never heard of it. A sponsored survey by the National Retail Federation revealed that in 2015, only 1.9% of those engaged in the pole celebrated Kwanzaa. This is approximately six million people in the USA. Whether you will celebrate Kwanzaa or not, you should decide now and begin to prepare because December is almost here. However, if you only want to stick to the Christmas celebration, as usual, you should endeavor to make the best of it. One way to have a memorable Christmas celebration is to hang out with your friends and loved ones. You can also stay at home and have some great moments with your family. You can start decorating your home now in preparation for the once in a year celebration. Get gifts for your loved ones, and have a lovely celebration. Most importantly, free your mind on Christmas day, don’t let your challenges weigh you down, eat as much as you like but in a reasonable quantity. Whether you’ll be celebrating Christmas or Kwanzaa, or you’ll be celebrating both, what is most important is that you have a blissful holiday. References https://www.history.com/.amp/news/5-things-you-may-notknow-about-kwanzaa https://en.m.wikipedia.org/wiki/Kwanzaa

HOME OWNERSHIP by Eric Lawrence Frazier MBA

Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own. Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time. Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable. Real Estate you own is not like staying at your parents house where you know can’t stay forever. Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy Home ownership is the pride of a mother nurturer and the kitchen her domain Home ownership is the pride of a father provider and protector of his territory and family. Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned. Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your hand. Howe ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life. It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor It’s the birthday parties, and anniversaries in the living room and kitchen. It’s the back yard barbecue with friends, neighbors and family contentions it’s the high school and college graduation, and wedding receptions Its’ the family nights and block parties and the fellowship of family connections Home ownership It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire. It’s more than money saved, gifts recieved and grants obtained It’s more than the debt you incur to buy it. It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time. It’s memories, it’s family, and it’s life that can happen in one place Until you say it’s time to move.