1). Home prices today have exceeded the previous market peak. Real estate prices peaked in 2007 before the economic recession of 2008. Mortgage interest rates spiked in 2007 to over 7%, and real estate experienced a market correction lasting through January 2012. 15 years after what is considered the worst market timing to purchase real estate, 2007; homes are now selling at 50% higher prices. And when considering the 20% down payment investment in 2007, the homeowner earned a 250% profit over the past 15 years. And that is the worst real estate timing investment you could have made. Today you have an added advantage. Loan interest rates are still significantly lower than the 6.5% range at the previous market peak. Available homes for sale average less than 50% of previous years because homeowners are holding onto their homes longer – 13.5 years on average compared with 7 years on average 30 years ago. Also, 89% of Southern California homes with mortgage loans enjoy 20% or more equity – and 80% of those loans are at 3.5% or less interest rate. Homeownership offers an incredible value.
2). Renting is very costly today. 2 bedroom apartments average $2,500 per month. 3 bedroom houses average over $3,000 per month. 4 bedroom houses are leasing over $3,500 per month! And rent is NOT tax deductible. But mortgage interest and property taxes can be. With the very low interest rates available today, your monthly home payment including tax deductions is often lower than you would pay in rent for a similar home. Plus homeowners enjoy additional benefits. Owning your own home gives you control of your living environment. When you upgrade or improve your home, you receive the added value, not your landlord. Appreciation and control of your family’s home is the American Dream.
3). 2023 is a great time to move up. Your family may have outgrown your current home; or maybe you’ve wanted to move to a different area or neighborhood. Rather than stay another year or two in your current house, with the added equity you earned, now is a great opportunity to secure the home you really want – And still secure an historically low interest rate.
4). Orange County real estate is a solid investment. Homeownership is the American Dream, and Orange County is the best place to live your dream. Orange County enjoys a Mediterranean climate. This is the most desirable climate on earth, and only 5% of the earth’s surface offers it. Orange County not only has the most desirable climate, it also sits on the Pacific Rim in the United States of America. Our unique location in the world provides the best combination of climate, political stability, and economic trade opportunity. We are surrounded by 6 regional and international airports, and we are next door to one of the largest shipping ports in the world at Long Beach & Los Angeles. People from other parts of the country, and all over the world want to live here. They all see The O.C. on television and other media, and everyone in the world knows where Disneyland is. Living in Orange County means you can surf in the beautiful Pacific Ocean, and snow ski in our majestic mountains in the same day – And still have time to enjoy your hot tub at home that same evening. We are just a 90 minute or less drive to Hollywood, San Diego, the Mountains, and the Desert – And of course the beautiful Pacific Ocean is in our backyard. Demand for homes in Orange County will continue to exceed supply in the future. You are in the right place at the right time.
5). Moving up increases your family’s wealth. If you discovered you can have the home you really want for your family, and your monthly home payments would be the same as your current home; would you make the move? Most would want to take advantage of that fabulous opportunity. Well, many of you can. Let’s look at a move up example:
The average Orange County home value is around $950,000. A typical move up averages around 50% more in home value; let’s say to a $1,500,000 home. Over the past 60 years, real estate prices in the area have doubled on average every 12 years. When home prices double again, the $950,000 home would have a new value of $1,900,000 – which is great. But your move-up $1,500,000 home will have an appreciated value of $3,000,000. Your move-up home earns you an extra $1,000,000 in home value! You essentially will be paid an extra $1,000,000 just for living in the home your family prefers.
Spread the $1,000,000 in additional profit over the estimated 12 years, and your move-up home earns you an extra $83,000 per year in home appreciation. This additional $83,000 profit each year (an extra $6,900 monthly) in appreciation. This additional profit is substantially more than the difference in monthly payment between your old home and your new home. Compared with staying in your current home, in the long run, you not only don’t pay any more for the home your family really wants – Your family can actually earn a profit by moving to your dream home!
6). Real estate makes you money. When you sell other investments, you will be required to pay over 30% in capital gains tax on the profit you earn in California. With real estate; you and your spouse can take the first $500,000 of profit tax free when you sell your home. This incredible savings is available to you just for living in your home at least 2 of the most recent 5 years you own the property. This can bring you an additional $150,000 cash in tax savings when you sell! That’s a nice golden parachute.
7). You have to live somewhere. Why not live in the home you really want? If your current home no longer provides your family the desired size, features, or area you would like, you may want to consider trading into a better home for your family. You may be concerned the home you really want will cost too much each month. But the truth is you are already paying a certain amount to live in your current home. When considering a move up, the difference between your current payment, and the new payment is what´s important when determining if a move-up is right for you. And the monthly difference is reduced even further by the additional tax write off saving you can receive. This means the government often pays over 35% of your additional new payment for you. You may be a lot closer than you think to the dream home you really want for your family.
8). My Guarantee. A major question when buying a home is: “Will I regret purchasing my home today?” If you plan to keep your new home 10 years or longer; market history tells us your new home purchase will be a terrific financial success. But when you purchase your home through me, I go a step further. I personally price guarantee every home buyer I work with. When you are ready to sell your home in the future; I guarantee your home I helped you purchase will sell for at least the original purchase price, Plus selling costs – or I will reduce the listing commission all the way to zero if necessary to help insure the return of your original investment. My guarantee is good whether you keep your home a month, a year, or 10 years.
When working with our clients; we individually evaluate each situation, and often find we can help a family move to the home they want. We will help you analyze the difference in monthly payment between your current home and the home you prefer for your family. Just give me a call at: 1-800-944-2441 or email me at: Cary(at)Cary4Homes(dotted)com. I will share the latest information for the current real estate market; and how you can profit by purchasing your first home, or your move-up dream home today. And as always; our conversations are confidential.
Copyrighted 03/24/2022 reprint in whole or part by permission only