Boy did you pick a good time to buy! The current housing market has created opportunities most of us didn't think we'd ever see again.Prices have fallen back in most areas from their peak a few years ago. Better areas close in to employment centers have held their value or even continued to advance, while outlying areas have suffered more. Bank owned property sales make up about 1/2 of sales statewide. The number of properties selling each month has soared for many months in a row.

The golden rule of investing is to "buy low and sell high". While one could argue that California prices are still not exactly low by national standards it is true that opportunities to buy only exist at or near the bottom of any market. I'm not going to predict the future but I will say that I think opportunities abound. There is a pent up demand for housing. For years buyers have been delaying buying decisions. Life goes on. People need to move on. People get married. Babies are born. Kids grow up and move out. Sometimes the kids come back, mabe with grand kids. Jobs require movieng, divorces and foreclosures happen. And people die. These are only some of the reasons people want to buy homes.


The government offers some of its best tax advantages to homeowners . You are allowed to claim all interest paid on a loan for your residence and all property taxes. This sum may be deducted from  income you would otherwise be taxed on. The money you save in NOT paying income tax greatly reduces the apparent cost of owning.

For instance. Let's say you pay $4,500 a month in interest and property taxes, or $54,000 a year. Let's also assume you make $100,000 a year from your job and that your tax bracket is 40% combined federal and state. That means your income tax would be $40,000 a year or $3,333 a month.  If you deduct the $54,000 a year in new write-offs from the $100K income you end up with $46,000 taxable income. If you then apply the same 40% tax rate your new income tax is only $1,800 a month or a savings of $1,500 a month! If you subtract THAT savings in taxes to the initial $4,500 a month down to only $2,700! That's a savings of 60%!

And then there is leverage. You know, making money with other people's money. If you bought a property for $750,000 and put 20% or $150,000 down and the property appreciated 10 % you make $75,000 profit . You made that profit with $150,000 which equals a 50% RETURN ON YOUR INVESTMENT. Not a bad ROI with 10% appreciation

Tax free profits from selling. Under current law a married couple who has lived in a residence 3 out of the last 5 years can sell and keep up to $500,000 profit without paying any federal ofr state income tax! 
 
Appreciation. While there are few guarantees in life, owning real estate has been one of the best investments over many many decades. Long term, real estate tends to outperform the stock market. Most people have the bulk of their net worth in their homes. 

Do what you want to do. Finally, having the right to do do as you wish with your home lies at the very heart of personal freedom. A man's or a woman's home is truly "their castle!" It is no wonder then that we call it " American Dream!"

I am proud to say that my greatest joy comes from assisting buyers in taking advantage of all these wonderful benefits. Let's talk!