Archive for June, 2008
When Opportunity Knocks, Trump Says Open The Door
June 26th, 2008 categories: Our Market
Whether or not one is a Donald Trump fan, you’ve got to hand it to the guy- he does know Real Estate. Perhaps an Idiot Savant but nevertheless, a very wealthy one. This past Tuesday evening the Donald and other Real Estate gurus were waxing financial with Larry King on CNN’s Larry King Live about where we are in our current market and what we should do about it. The panel of experts all had the same piece of advice for us mere mortals- don’t miss out on this opportunity to get in on one of the hardest hit Real Estate markets in history. Donald Trump said, ‘If you have money to invest, even if you don’t have money to invest, find a way to buy into this down market’, I paraphrase.
Foreclosures are driving down the price of homes all around the country and of course, there are many bank owned properties that are incredible bargins. Whether we are at the bottom of the market today or will be tomorrow, the market is ripe with opportunity. Listening to the panel of experts the other evening kindled my motivation to get more aggressive in my search for our next investment.
In an interview with the San Diego Business Journal, Century 21 CEO Thomas Kuntz said, “I’m fearful that…the average individual will miss what I think is one of the greatest opportunities I’ve seen in my years in this business”. As buyers wait on the sidelines for the ‘bottom’ of the market, it could very well pass them by. An increase in interest rates can easily erase $20,000 or $30,000 in price reduction.
Before we all run out and buy the first piece of property that jumps up in front of us, we must remember how we got into this foreclosure mess. People bought property with unrealistic expectations of appreciation and the rate of appreciation and took on risky loans that in the end, they couldn’t afford. There wasn’t enough ‘wiggle room’ in their financial plan to be able to withstand the rate fluctuations. Let’s not max ourselves out- figure in a rainy day scenario or if you are looking for a rental, a reasonable vacancy factor. The trick is to not find yourself in a position that you must sell regardless of conditions and you must have a long term plan for the schedule of payments.
The high rate of foreclosures is expected to peak this summer and run its course by year end, said Alan Nevin, director of research for MarketPointe Realty Advisors in San Diego. And, housing will eventually rebound locally, because of a chronic shortage of housing and a strong, diversified economy, he said.
San Diego is short on the supply side when it comes to housing and there isn’t much room for expansion at this point. All of the developable land is virtually developed. Yet, San Diego remains one of the most pristine locations to call home on our entire planet. This will keep San Diego Real Estate a valuable commodity and as our economy grows there will be more and more of a housing shortage.
Timing is everything and we believe this market is timed for buying success today. How can we help you take advantage of this historic opportunity? LOVE Where You Live. We Will Help You Get There.
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Race for Tibet 2008
June 24th, 2008 categories: Glimpse of the Day
There is an organization that I am a member of called The International Campaign for Tibet. It’s a not for profit humanitarian organization that focuses it’s efforts on the needs of the Tibetan people and the occupied country of Tibet. Now, I’m not going to make my blog site a political soap box because it’s primarily a business site but I think you are ready for a little fist-pumping today- I can feel it.
In 1949, China invaded Tibet. The Tibetan people and their leader didn’t understand the full implications of this occupation at the time. They were rather naive as they had very little exposure to the outside world being perched high on top of it and very trusting due to their own benign motivation. Once it became evident that this occupation would threaten their culture and their lives, the Tibetan people tried to resist but China was far too strong. Over a million Tibetans were slaughtered during the 1959 uprising and the Tibetan government, many Buddhist Lamas and the Dalai Lama fled for their lives to India.
There have been other uprisings since and each one is put down more violently than the last. Since March 2008, around 200 Tibetans, including monks and nuns, have been killed and thousands have been injured. Many Tibetans have been beaten for participating in peaceful demonstrations and cannot go to the hospitals for fear of being arrested. The situation is grave.
What is at stake today is the entire Tibetan culture. Tibetan children cannot go to school unless they speak Chinese and even when they do, their future is stymied because of their Tibetan heritage. The Tibetan people have become economically marginalized in their own country. Tibetans have long revered their leader, the Dalai Lama, and it is a crime to possess his image in a photograph or painting. The Tibetan language and culture are today at risk of becoming extinct. We go to great lengths to avoid extinction in animals and plant life because we know how valuable those life forms are to our planet but we are slow to act when it comes to our human family.
What ‘We’ want today is for China to meet with and work with the Dalai Lama to bring an end to the sorrow of Tibet. His Holiness is no longer calling for China to leave Tibet- only to make it a place that Tibetans are free to worship and practice their beliefs, live their lives free from fear and oppression and have a future that is unrestrained.
This blog is not ‘against’ anyone, instead it’s for Tibet. We Americans cause havoc all over the world in the name of freedom and democracy. I would like to see the world powers join together to save Tibet and the Tibetan culture from certain peril and at the same time, help China become a truly great country. There is a middle way where everyone can be satisfied but it’s rarely easy to find. I believe we have come to a time in our exsistence where true change needs to occur. The mindless and violent ways of our human history need to be put aside in order for humanity to take the next great step into a future that really is sustainable. We need to finally truly ‘evolve’. I think we are capable of this- I certainly hope so for the future of the human race.
If you are interested in learning more about this cause, visit Savetibet.org and learn how you can make your voice heard.
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Green Wood and the FSC Label
June 22nd, 2008 categories: The Greener Side
There is green wood and there is ‘Green’ wood. One is not great to build with and the other is your best choice when considering using wood in your home. Perhaps you are updating your home with new floors- hardwood flooring is definitely the ‘hot ticket’ today for home decor. But did you know that you can have a perfectly ‘Green’ wood floor if you are just a little bit more discerning?
What you want to look for are woods that are FSC Certified. The FSC (Forest Stewardship Council) is an independent, non-governmental, not for profit organization established to promote the responsible management of the world’s forests. Products carrying the FSC label are independently certified to assure consumers that they come from forests that are managed to meet the social, economic and ecological needs of present and future generations.
FSC’s standards are the highest social and environmental requirements in the forestry sector and they have proven to work across continents, forest types, sizes and ownership. The FSC standards setting process is transparent, democratic and inclusive with many opportunities for the interested public to participate. It is this process that has allowed FSC to become an important and recognized forum where innovative solutions have become possible with the support of all stakeholder groups interested in forestry issues. FSC is the only certification system in forestry recognized by ISEAL (Code of Good Practice for Setting Social and Environmental Standards) to follow best-practice in standard setting.
What sets the FSC apart from other forest certification systems is their commitment to all aspects of forest management. Their stewarship benefits the eco-system and protects against deforestation but also is concerned with habitat for indigenous creatures and the economic effects on the indigenous peoples. The FSC doesn’t promote plantation farming but managed harvesting of natural forest areas. Plantation farming can be harmful to the soil and does not provide habitat for woodland species. The FSC also promotes the use of a varied assortment of woods so that one type is not over-harvested and endangered.
Bamboo is often thought of as a Green product for flooring. And it is. Bamboo is actually a grass, not a wood and it is a fast growing and easily replentishable resourse. But you should be careful when choosing a bamboo floor for your home. Bamboo is very soft so high traffic areas will show signs of wear and some less expensive bamboo floors can delaminate. Because bamboo has become so popular, often times it’s harvested too early in it’s lifecycle. Younger bamboo is considerly softer and less durable. One must also be aware of how their bamboo flooring is being installed. There’s nothing worse than going to the trouble of installing a ‘Green’ product such as a bamboo floor and then having toxic glue adhering it to the sub-floor. Some of the adhesives used in flooring installation can off-gas for over a year. It would really be a shame if your bamboo floor was worn out just as the glue stopped stinking up the place! Bamboo can be a great product to use and can be very beautiful but ask the right questions and be sure the installation is as green as the product.
There are also many lovely hardwoods you can use and still have a ‘Green’ heart and home. Look for the FSC Certified label and you can feel confident that your beautiful floor isn’t a burden on our beautiful planet. FSC Certified woods are likely to cost a little more than non-certified products but if it’s the natural glow of wood that you want in your home, it’s really a small price to pay to keep our forests alive and healthy and over time, costs will go down as more people insist on FSC Certified products and supply meets demand.
Thank goodness for organizations like the FSC that are helping to maintain our quality of life by protecting our life sustaining forests. Remember to look for the FSC Certified label next time you buy wood.
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Investors ‘Bidding Up’ Real Estate in San Diego County
June 18th, 2008 categories: Our Market
It’s official…The Real Estate investor is back in San Diego County. In fact, there is so much activity that in many cases prices are actually being bid up by multiple offers. This shift is being driven by lenders off-loading their foreclosed portfolios at bargin-basement prices. According to the San Diego Association of Realtors, sales of homes priced under $417,000 in May were triple what they were in 2007 and the majority of these properties are foreclosures. Investors are so prevalent in the market today that first-time home buyers are finding it difficult, if not impossible, to compete.
DataQuick Information Systems reported that one-third of the 2,475 existing home sales in April were foreclosed properties and in May, an additional 1,977 were listed for sale, according to Foreclosureradar.com. Today, there are over 12,000 additional homes in some state of default which could extend this feeding frenzy through the end of 2008.
Many lenders are now turning to auctions as a way to unload their foreclosed properties that are not selling on the open market. REDC, an auction company, holds three to four auctions nationally every day. They have an event scheduled for June 22, 2008 at the San Diego Convention Center where they plan to sell more than 220 properties currently held by Countrywide Financial, Bear, Sterns & Co., Washington Mutual Inc. and the like. Homes sold at auction typically fetch an average of a ten to twenty percent discount below the Broker’s Price Opinion but many homes can sell for retail and in some cases, higher than estimated market value and the listing price.
It’s important for people to have a plan before they decide to buy a home at auction. First they must do their due diligence and learn everything they can about the properties to be auctioned. The REDC website offers information available online but if there is a property that one is interested in, further investigation is warranted. The City in which the property is located can be helpful in discovering what structures have been permitted on the site. Many title companies also offer information on their websites that can be useful. Most importantly, the interested buyer must have a price ceiling in mind that is thought through and committed to. For many buyers, it will be easy to get caught up in the frenzy of the auction which may lead to over-paying for the property. It’s important to remember, these auctions are choreographed to incite spending and excite prospective buyers. Emotions and distractions can cause buyers to pay more than they should. Plus, on top of the price of the home, there’s the ‘marketing fee’ charged by the auction company.
While foreclosures are up considerably in San Diego County, it’s important to note that 70 percent of all foreclosures are concentrated in 10 of San Diego’s 90 neighborhoods. The foreclosure ‘hot spots’ are Otay Ranch, Spring Valley, Escondido and areas of Oceanside and Vista. While these neighborhoods will take some time to recover from the resultant price depreciation caused by the sheer number of foreclosures in the area, many of San Diego’s higher-end locales have held on to their value to a much higher degree.
If you are in the market for an investment property or you are vying for your first home, let JB Home Sellers help you find the right home at the right price. It’s a very competitive market and we can help you get a piece of it. There’s no time to waste- call us today.
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San Diego Real Estate Sales Break 30 Month Trend
June 11th, 2008 categories: Our Market
More evidence that we have seen the bottom of the Real Estate market in San Diego is apparent in the sales volume for May 2008. For the first time in the past 30 months, we have seen a year-over-year increase in sales volume in the county. Single family detached home sales were up 4.27 percent over May 2007 and up almost 7 percent over April 2008. Sales volume for attached homes rose almost 14 percent from April and up 4.67 percent from May 2007. Median prices for both single family detached and attached homes are down over 20 percent from last year and these lower prices are spurring on home buyers and investors to take advantage of the opportunities while they last.
A major segment of this heated market is homes priced under $417,000. Sales in this price range are triple what they were in 2007 making it possible for first time home buyers to get into what has been an exclusionary market in the recent past. Investors are also taking advantage of the deals available today. We have seen investor traffic increase significantly this spring and we expect the trend to continue, particularly with the low interest rates available today. International buyers are becoming more prevalent in our local market as they are finding an unprecedented opportunity for a Dream Vacation Home and investment in America’s Finest City (and County). Between the low interest rates, the low prices and the weak dollar, US Real Estate is ”The Perfect Storm of Value” to international buyers.
This is a good sign that the worst is behind us and we are on the road to recovery. San Diego County was one of the first counties to feel the effects of the bursting housing bubble and it looks as though we will be leading the way out of this morass that we’ve been mired in for the past three years. Not a moment too soon if you ask me!
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Where Do We Go From Here?, A Travelogue
June 8th, 2008 categories: Lifestyle
There is a downside to living in paradise. I realize that sounds a little whiney but when you live in such a beautiful and rich environment, it’s hard to come up with a better vacation destination. Particularly if you want to just relax and unwind. But, after much investigation (and three subsequent trips), I have found the perfect vacation destination for those who live in paradise… The British Virgin Islands. It’s sooo not Hawaii. ‘Not that there’s anything wrong with’ Hawaii but you have to admit, it’s a lot like San Diego. In fact, half of the wait staff you deal with are from San Diego.
So if you really want to get away, to a place where the trade winds carry away every care and there’s nothing to do but lounge and play, consider the BVI. It’s a bit of a trek but you’ll end up a world away and sometimes, that’s just where to want to be.
The British Virgin Islands are located just east of Puerto Rico and lie only a few miles from the nearest US Virgin Island of St. John which in turn, is next to St. Thomas. While St. Thomas is a commercial mecca, the BVI are anything but. In this lies their charm.
The BVI are an English territory but self governed by the Belongers, the name given to the natives of the islands who are descendants of African slaves brought to the islands to work the sugar cane plantations. The history of the BVI is rich with pirate lore, truly a hang-out of the notorious Blackbeard. Blackbeard’s pirates would scan the Caribbean Sea for Spanish merchant ships from the peak called Lookout Point at Norman Island. Once spotted, they would then race from their hiding place in the cragging coast line of the island to attack and loot the treasures within the great ships.
The great sugar plantations of the islands parleyed into sugar mills which lead to rum distilleries, the remains of which are still scattered about the islands. There is a distillery still in operation on the island of Tortola, at Cane Garden Bay called Callwoods Distillery. The distillery has been in operation continuously for more than 300 years and makes a fine bottled of rum indeed. All day long you can stop in and test the various rums produced on site and for a modest fee (of a couple extra dollars) even get a tour of the facility (which will take about 7 minutes- history included). To say that it’s rustic is the understatement of understatements. Take a bottle of Callwoods Rum home with you. A few years ago the distillery would use whatever glass bottles they could get ahold of, even old coke bottles. Today, they use new screw cap bottles that are sealed with a measure scotch tape. That’s how you know it’s new!
The main islands of the BVI are as follows; Tortola, the capital of the BVI and largest island, Virgin Gorda, Ginger Island, Cooper Island, Salt Island, Peter Island, Norman Island and Jost Van Dyke. There are many other tiny islands and cays (pronounced keys) scattered about the crystal clear waters of the Caribbean Sea. The BVI is known as possibly the best sailing in the world. The waters are generally calm and always warm, around 80- 85 degrees Fahrenheit. Same goes for the air temperature. In the winter, it rarely gets below the high 60’s F and in the height of summer, can get to the low 100’s F. Due to the incredible visibility, the area is also known for scuba diving and snorkeling. There are fabulous coral reefs such as ‘The Indians’ and ‘Alice in Wonderland’, even a sunken ship, the Rhone, and plenty of diving excursions to take you there. Most off-shore dive sites are within 30-40 minutes by boat which makes for more diving and less floating. But you needn’t leave the shore for extraordinary snorkeling. We’ll go over our favorite spots by island. Read the rest of this entry »
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