SCREG_MAY2012

Real Estate

ExpErt’s CornEr Cost to Own is Way Down The cost to own a home is the lowest it has been since 1999.

What is the check going to look like every single month for as long as you live in your home? That is what every buyer should be focusing on in looking to purchase. The “cost” of a home is not only the price paid, it is the monthly payment, as well. As a new homeowner writes a check for the monthly payment month in and month out, it will not take long for the price paid for the home to become a fleeting memory.

Instead, the homeowner is going to be exceptionally aware of the exact dollars and cents that must be covered every month. Cashing in on the historically low interest rates is so much more important than getting hung up on paying an additional $5,000 to $10,000 more for a property. The difference in payment is about $25 per month for every $5,000.

So, a $20,000 difference is $100 per month. That may seem significant, but it seems that everybody is overlooking the importance of changing interest rates and its impact on the monthly cost of a home. However, interest rates truly are at historical lows and will not remain this low indefinitely.

Waiting seems to be a gigantic gamble that can cost a family thousands of dollars every year. If prices remain the same, which is becoming increasingly probable, a jump in the interest rate by 1% for a $400,000 loan will add an additional $238 per month to the payment. A 2% increase will result in a $489 per month difference, or $5,868 each and every year.

For those buyers who want to wait in fear that prices will drop, when will they enter the market? Historically, once these buyers are finally certain that the market is poised to appreciate and that it has definitively turned the corner, interest rates will be much higher than they are today. As a point of reference, payments are nearly identical for a 4%, $400,000 loan and a 6% $320,000 loan.

Remember, today’s market values are a result of major price depreciation. The lower values and lower costs are fueling the turn in the housing market thus far in 2012.

As so many experts are concluding, the cost to own is not going to get much better than it is today. Instead, we strongly believe that people who wait will look back with regret and will reminisce about the good ol’ days when interest rates were at 4%, just as we all reminisce when gas prices were at $3 per gallon.

We are here to assist with all your real estate questions and needs. Please feel free to call me any time.

Surterre Properties, www.csiragroup.com 33522 Niguel Road, Monarch Beach, CA 92629 DAVE CSIRA 949.500.3283, dave@csiragroup.com

Mom is coming to visit for Mothers Day… Are you ready?

With Mother’s Day just around the corner, and multi-generations of family getting together, we are once again asking you to consider just how “visit-able” is your home?

Visit-ability, is a movement/philosophy/trend that seeks to insure that all homes are at least partially accessible to all people regardless of mobility impairments, even when those in fact might not be the owners of the homes but rather occasional visitors such as aging parents.

Visit-ability modifications also make homes easier for those who might develop mobility limitations to still visit friends and family, rather than have to turn down invitations or not be invited at all.

The importance of this simple philosophy can be seen even more when one realizes that the 65 and over population is expected to increase from approximately 35 million in 2000 to 55 million in 2020. 90% have indicated desires to stay/age in their own homes as long as possible ensuring maximum independence possible.

For all of us–perfectly healthy or otherwise–our ability to conduct simple daily tasks like cooking and bathing (with safety and efficiency) has a direct effect on our sense of happiness and independence.

Home owners are investing good money in their homes and should be informed that with a slightly modified way of thinking, they can also comfortably, stylishly and safely provide for their changing needs over time.

In our opinion, it is unconscionable for any design professional to not take this opportunity to educate the home

owner on the ideas and principles of aging in place that address and provide for their future demands for the space–not simply their current ones.

Whether you just need a plan for what to do for when mom comes to visit, or if you’ve decided on a major remodel, we can help you get more out of your home; Enhancing the healthy and independent lifestyle you deserve for you and yours as time goes on, while also increasing your home’s value as more and more aging buyers recognize the advantages of a home for a lifetime.

Give us a call at 949.492.1872 to explore your current and future needs About the Author: Raad Ghantous is the principal of Raad Ghantous & Associates/RG&A (www.raadg.com) and is an expert in luxury hospitality, wellness centers, and medical & day spa developments. RG&A has over 15 years of experience specializing in developing integrating elegant and seamless designs/modifications to new or existing structures. Raad is also the owner of the newly founded “Your Home For A Lifetime”, an A.D.A/ Barrierfree/ Universal design/Aging in place, full service design division of Raad Ghantous & Associates RG&A.

HOW THE $25B MORTGAGE SETTLEMENT MIGHT HELP YOU

by David L. Gibbs I just returned from a conference at which both the National and California Monitors for the record-breaking $25B settlement between mortgage servicers and the government spoke. Their message was one of hope – that this settlement and the relief it may provide to homeowners will help stem the tide of what continues to be a real estate disaster, and that this might restore some faith in our financial and legal systems. For those who haven’t watched the news recently, the Federal Government and 49 of the State Attorneys’ General recently reached a landmark settlement with banks over claims of improprieties in the servicing and foreclosure of mortgages. The settlement has three main components – relief for homeowners who’ve already lost their homes; relief for homeowners still struggling to retain their homes; and new servicing standards for how mortgages are serviced going forward. The settlement does not cover all lenders and/or mortgage servicing companies.

The “Big 5” mortgage servicers were the target of this action, and accordingly, only mortgages serviced by Ally/GMAC, Bank of America, Citibank, JPMorgan Chase and Wells Fargo are eligible to participate in the settlement.

For homeowners whose home was foreclosed by one of these banks between January 1, 2008 and December 31, 2011, you will be eligible for a direct cash payment of between $1,500 and $2,000. The even better news is that if you believe that you have claims against the bank as a result of the loan or foreclosure, the payment of this settlement to you does not act as a waiver of those claims, and you may continue to pursue them separately and independent of this settlement. One word of caution, however, the banks will provide lists to the State Attorney Generals of persons eligible to receive these funds – if you were foreclosed by one of the “Big 5” during the applicable timeframe, you will want to contact the California State Attorney General’s office to ensure that you are included in the settlement.

If you still own your home, the settlement provides for an enhanced, mechanism for obtaining a loan modification. Again, the banks are responsible for identifying homeowners who may be eligible, so it would certainly benefit you to contact a knowledgeable professional to identify the best means of ensuring that you are included in these benefits. NACBA, the trade organization who hosted this conference is presently working on a mechanism to ensure that eligible homeowners are properly considered for relief, because as of today none of the “Big 5” have procedures in place to facilitate the settlement.

I’ll be writing more on this settlement as it develops.

For current information, check our website at www.gibbslaw.com.

949.492.3350

1908 Calle De Los Alamos Warm modern interior redesign in Southwest San Clemente.

Expansive bluff-top ocean views and perched above Lasuen beach.

Situated on a manicured, gentle slope that borders the beach trail with easy access to surfing, volleyball, running & nature enthusiasts! The design of this home was recently completed by HGTV’s ‘Redesign’ host Kenneth Brown. Minimalistic lines infused with pops of color transcend this entire home.

The piece de resistance is the ocean and sky from the bay configuration and extra low and tall windows for maximum white water and sand views.

June 7th

HOME AND GARDEN Get the Most from your Home Remodeling done right not only allows you to better enjoy your home, but in the long run can even return a majority of what you spend. According to the National Association of Realtors, by focusing on quality and improving the right areas, you can earn back about 70% of the cost of remodeling if the time comes to sell.

“Plant vegetables in a raised bed or in pots with a drip system.”

The improvements that offer the best return on your investment include: 1) Update Kitchens. These are often-used spaces, and you don’t need to spend a fortune to make them beautiful.

Looks can be updated without using the most expensive materials, and improving the lighting and layout can go a long way.

2) Beautify Bathrooms. Another often-used space, a well-built bathroom adds significantly to the comfort and enjoyment of your home.

3) Add Outdoor Living Space. Decks and patio covers create space and usable living area at a fraction of the cost of adding on.

4) Maintain the Exterior. Well maintained roofing and siding do more than increase the curb appeal of your home.

Neglected exteriors can also lead to much more expensive problems down the road.

5) Upgrade Doors and Windows. Quality doors and win-

dows add style and character. They also contribute to significant heating and cooling savings.

Choosing a contractor with a reputation for quality will ensure that you get the best value out of your home projects.

Call Sacher Construction for a free consultation. We are locally owned and operated, and fully licensed and insured.

Jordan Sacher – Owner 949.303.8712 Jordan@SacherGC.com www.SacherGC.com

6 Important To Do’s in your Home with an easy reminder from Father time It’s that time again! Spring forward! Maintaining the mechanical parts of your greatest asset is something many of us (myself included) often overlook. Here is an easy way to remember. When you change the time on your clocks for daylight savings in the Spring & Fall, remember the following six tasks (in no particular order) need to get done: • Inspect and clean behind and around your clothes washer/dryer. The lint that often collects there can be a fire hazard (plus you may find that sock you were looking for). Also inspect your flexible water hoses to your clothes washer. Their failure is the leading cause of water damage to homes. The average age of failure for a washing machine water hose is approximately 8.5 years. This means they need to be proactively replaced every 5 years.

• Check the batteries and test your smoke and carbon monoxide detectors. If you don’t have either one of these detectors, it is now a code requirement. They can be found at most hardware & home improvement stores and are life savers!

• Have your heating and/or air conditioning system serviced and cleaned by a professional. Giving your heating and cooling system a spring cleaning will allow you to stay comfortable even after spring turns to summer. Your maintenance includes checking your thermostat settings, cleaning and adjusting components, safety checks and pressure cleaning your systems drain line to help avoid

Landscape Tip # 9 for 2012

expensive water damage.

• Inspect and drain your storage tank water heater. If you have a tankless water heater, it typically requires an annual descale service. Remember a water heaters typical life span is 10 to 14 years for a storage tank type and 20 to 25 years for a tankless.

• Clean behind & around your refrigerator (pay close attention to clean any coils or parts that look like a radiator). Dirty coils and air restrictions can cause your refrigerator to run twice as long as it should.

• Check your emergency preparedness and first aid kits for any items that need replenishing.

Once you have got all these tasks done, go enjoy the x-tra daylight hours!

Triton Air, Inc. is a family operated and owned company specializing in repair, installation and maintenance on commercial and residential Heating, Air Conditioning, Refrigeration and Water Heating equipment. Increase your energy savings by calling us before June 15th to hear how you can receive up to $1,575 in Rebates or 18 Months, No Interest, Equal Monthly Payments Financing through GE Capital with the purchase of a qualifying Lennox® Home Comfort System. Call us today at 949.492.0290 or visit us at tritonair.net.

Over the past decade my wife and I have grown both small amounts of edibles in containers and now larger amounts in raised beds. We progressed from buying the random hybrid tomatoe or hot pepper at the nursery to growing most everything from seed shipped via mail order, from a seed catalog. One shipment included a free packet of carrot seed. I had heard that tomatoes appreciated carrots and vice versa, essentially the two being perfect companions.

I sprinkled some seed around the base of the tomatoes and in two months I had an amazing amount of different sizes and shapes of deep orange carrots. Neither my wife or I particluarly though liked carrots. Despite this my wife still opted to incorporate them into some dishes so that we did not just throw or give them all away. To our surprise the carrots were sweet and full of flavor, they were crunchy and crisp, yet softer than their cousins from the super market that threaten to chip a front tooth.

So then we started growing things we never ate before like baby bak choi, and colorful lettuces that are not even found at the high end grocers, and virtually eveything proved to be just like that carrot… (insert overdone yet fitting saying here) yes like the carrot on the end of the stick leading towards a better edible small garden.

If you have even a small area that gets 6-8 hours of sunlight set up a raised bed or some large pots. Fill with a bagged planting mix or some delivered bulk planter mix. Add an additional zone for a drip system that will take away the need for your constant daily attention and enjoy your work. Of course there are more details than can be covered here so either hire a professional or buy a book like “The Vegetable Gardeners Conatiner Bible” by Edward C. Smith or “Small Plot, High Yeild Gardending”

by Sal Gilbertie and Larry Sheehan.

Look for more discussion on Landscape and Hardscape ideas in this years SC times Real estate section.

Submitted by Rob McFadgen (owner of Costa Verde)