A Message To Buyers

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"There's no place like home" ... a place you call your own.

You’ve decided it’s time to settle down and build a feeling of permanence for yourself and your family. Home ownership is the key to building stability now and wealth over time.

Owning your own home brings control over your own destiny vs. being driven by the whims of market trends or a landlord. Keep in mind that when you pay rent, you’re building someone else’s wealth! Your rent pays their mortgage! You miss the opportunity to invest in something for yourself and your family, you miss the tax benefits available through interest deduction, and – most importantly – you truly lose control over your own family’s stability because who knows when the landlord will decide to raise the rent, sell the property, or even move back in himself?

How is it that you can build wealth over time? Typically when you spend money, it’s on something that immediately begins to decrease in value. Everyone knows that when they drive a new car off the lot, it immediately depreciates in value. However, when you buy a house, your monthly mortgage payments serve as a type of scheduled savings plan. Over time, you gradually build what’s known as “equity,” an ownership interest in the property that you can often borrow against or convert into cash by selling the house. Or – rather than borrowing against it – imagine the feeling you’ll have when you pay it off and live without paying rent OR a mortgage payment!

Another advantage of home ownership is that while rents typically increase year after year, most mortgage payments remain unchanged throughout the entire repayment period (typically 30 years). In fact, because of the effect of inflation, over the years you pay the same amount but with ever "cheaper" dollars. And ... you eventually pay it off!!! Imagine that!!!

Though we’re currently in a "declining" market – recovering from the Housing Bubble that grossly over-inflated housing prices – historical trends show that property in San Diego County typically appreciates (increases in value) approximately 5-6% per year. You might say, "Well, I can make 10-12% in other investments." With the volatility of the stock market and even other hard assets such as precious metals, I’d like to know where you can find a safe investment that will give such predictable returns over 30 years. And, remember that your 5% average annual appreciation is on the entire price of the property, not the 10-20% downpayment.

Let’s look at an example. You qualify to purchase a $300,000 house, putting 20% down ($40,000). Your loan amount is $260,000. At a conservative rate of return of 5% on your $300,000 purchase, you’ll build that initial $40K back in equity within three years! And if you’re saving over $15,000 per year and the home continues to grow in value because of inflation, etc., that 5% is recalculated over the inflated price! That means you’re saving $15K, $20K, $35K and more per year over that time period. And – at the end of the 30 years, you’re owning a property free and clear!

Your initial $40K is a tiny fraction of the price of the home that will appreciate to at least double if not triple its original price! All the while you’ve made the same monthly payment, not to mention all the savings with tax write-offs! Tax savings is like getting an instant raise in salary because it immediately affects your monthly take-home pay!

Let’s not forget all the incentives the government is offering to buyers these days. Did you know that the real definition of a "first time homebuyer" is actually someone who has not owned a home in the last two years? You could have been a homeowner your entire adult life, sold two years ago and rented, and now be back in the market as a "first time homebuyer", receiving all the incentives and perks being offered by the government, builders, and traditional sellers who must sell now. Call us, and we’ll tell you the details.

And what about our military friends? You’re already receiving a housing allowance – why not put it to good use and buy a home verses investing in someone else’s wealth? Perhaps you’re thinking you’re not sure how long you’ll be stationed in San Diego so what? Rents are rising, and you’ll have no trouble finding a suitable renter to build YOUR wealth! You then move on to your next duty, and do it all over again. Your five or six moves over a career could potentially put you in a very comfortable retirement position with sweet little family homes dotted all over the country. And the government pays for it! Makes me want to enlist! Call today to learn more about the specific services offered only to our friends of the Armed Forces.

The bottom line: Home ownership brings so many benefits and perks to build stability and wealth for yourself and your family. Let’s get started today.