Written by: By Milena Regos, Marketing Director for IVGID
This article appeared in the North Lake Tahoe Bonanza on Friday, September 26, 2008
Are you considering purchasing a season pass this winter and can't make a decision where to go? Do you live in Incline Village/Crystal Bay or the North Shore? If the answer is yes to both questions, then I have a simple solution - Go to Diamond Peak and enjoy solitude, improved base lodge, amazing views, plenty of terrain and vertical feet, friendly staff, convenience, close parking, outstanding snowmaking, great events like Last Tracks, Dummy Downhill, Vertical Challenge, rail jams and terrain park competitions and 2 free barbecues for season passholders.
We are all busy people juggling many responsibilities so it's nice to be able to come up in the morning or in the afternoon and get 2-3 hours of riding and still have time for everything else in your busy day. Diamond Peak season passes are free for children under 6 and people over 80. They are as low as $42 for people over 70, $153 for people 60-69. A season pass for children 7-12 years old is $127. Instead of wasting your time driving to a far away resort and sitting in traffic, walking through busy parking lots, spending money in shops and getting a run or two in before you have to turn around and head home sitting in traffic, your best choice if you live in Incline Village/Crystal Bay is to purchase a Diamond Peak pass and ski at your local mountain. We have plenty of fun events for you to keep entertained all season long. But hurry, season pass sale ends on September 30th so make sure to get yours before prices go up and save up to 25% the regular rate. Just go to diamondpeak.com today to buy your season pass. Have a great season!
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, September 29, 2008
Friday, September 26, 2008
The Potential Role of Value Investing in Volatile Markets
This article appeared in the North Lake Tahoe Bonanza on September 26, 2008
A growing number of people are investing to achieve change – change in the future of their communities, the environment and the world. As a result, over the last ten years, the amount of assets managed according to socially responsible criteria grew at a faster rate than the entire universe of managed assets in the United States. Socially responsible investing (SRI) assets rose more than 258% from $639 billion in 1995 to $2.29 trillion in 2005.
Sri is an investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis. Social investment managers often overlay a qualitative analysis of corporate policies, practices and impacts onto the traditional quantitative analysis of profit potential.
Today, nearly one out of every ten dollars under professional management in the United States is involved in socially responsible investing. According to the Social Investment Forum’s most recent biennial report, $2.3 trillion out of the $24.4 trillion in total assets under management are in professionally managed portfolios utilizing one or more of the three core strategies that define SRI: Screening, Share-holder Advocacy and Community Investing.
To learn more contact a local Financial Investor.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
A growing number of people are investing to achieve change – change in the future of their communities, the environment and the world. As a result, over the last ten years, the amount of assets managed according to socially responsible criteria grew at a faster rate than the entire universe of managed assets in the United States. Socially responsible investing (SRI) assets rose more than 258% from $639 billion in 1995 to $2.29 trillion in 2005.
Sri is an investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis. Social investment managers often overlay a qualitative analysis of corporate policies, practices and impacts onto the traditional quantitative analysis of profit potential.
Today, nearly one out of every ten dollars under professional management in the United States is involved in socially responsible investing. According to the Social Investment Forum’s most recent biennial report, $2.3 trillion out of the $24.4 trillion in total assets under management are in professionally managed portfolios utilizing one or more of the three core strategies that define SRI: Screening, Share-holder Advocacy and Community Investing.
To learn more contact a local Financial Investor.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Wednesday, September 24, 2008
A New Climbing Wall for Lake Tahoe
This article appeared in the Tahoe World on September 24, 2008
If you have been to or even by High Altitude Fitness in Incline Village lately you probably noticed lots of construction around the fitness center. But unless you have been inside the building you are probably not aware of the secret.
There is a black hole inside High Altitude Fitness. It is 14 feet deep! Now that's a big hole. At the beginning of summer, High Altitude Fitness started making this hole. When it is completed by the end of November, the hole will offer an unusual and innovative new way to keep in shape.
In November, High Altitude Fitness will be the home of the largest and tallest rock-climbing wall at Lake Tahoe. According to Jason Burd, owner of High Altitude Fitness, once the wall is completed, it will attract more than just the local "die hard climbers."
"We have a large community of climbers here," he said. "But this is also a good outlet for kids and for everyone to stay in shape."
High Altitude Fitness is already a state-of-the-art facility but the new climbing wall is going to turn it into an incredible facility. Burd said that his entire staff would be trained and certified so that they can assist members. The wall will allow local climbers an opportunity to climb year-round.
One of the new fun extreme sporting activities is rock climbing. But there are also specific exercises and techniques that climbers need in order to have the best possible workout. These programs and classes will also be offered at High Altitude Fitness.
"My goal is to provide the best possible fitness experience throughout Lake Tahoe," said Burd. In order to help Tahoe residents learn about the benefits of rock climbing Burd will hold a special open house once the wall is completed. During the open house he will offer special certification and training for anyone interested in learning about rock climbing.
High Altitude Fitness is open weekdays from 6 a.m. to 9 p.m. and on weekends from 7 a.m. to 7 p.m. The center has new locker rooms, a weight room, cardio theater, two group fitness studios and all new equipment. Call High Altitude Fitness for information at (775)831-4212.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
If you have been to or even by High Altitude Fitness in Incline Village lately you probably noticed lots of construction around the fitness center. But unless you have been inside the building you are probably not aware of the secret.
There is a black hole inside High Altitude Fitness. It is 14 feet deep! Now that's a big hole. At the beginning of summer, High Altitude Fitness started making this hole. When it is completed by the end of November, the hole will offer an unusual and innovative new way to keep in shape.
In November, High Altitude Fitness will be the home of the largest and tallest rock-climbing wall at Lake Tahoe. According to Jason Burd, owner of High Altitude Fitness, once the wall is completed, it will attract more than just the local "die hard climbers."
"We have a large community of climbers here," he said. "But this is also a good outlet for kids and for everyone to stay in shape."
High Altitude Fitness is already a state-of-the-art facility but the new climbing wall is going to turn it into an incredible facility. Burd said that his entire staff would be trained and certified so that they can assist members. The wall will allow local climbers an opportunity to climb year-round.
One of the new fun extreme sporting activities is rock climbing. But there are also specific exercises and techniques that climbers need in order to have the best possible workout. These programs and classes will also be offered at High Altitude Fitness.
"My goal is to provide the best possible fitness experience throughout Lake Tahoe," said Burd. In order to help Tahoe residents learn about the benefits of rock climbing Burd will hold a special open house once the wall is completed. During the open house he will offer special certification and training for anyone interested in learning about rock climbing.
High Altitude Fitness is open weekdays from 6 a.m. to 9 p.m. and on weekends from 7 a.m. to 7 p.m. The center has new locker rooms, a weight room, cardio theater, two group fitness studios and all new equipment. Call High Altitude Fitness for information at (775)831-4212.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, September 22, 2008
Less Home Foreclosures on North Shore
Written by: By Kyle Magin, Bonanza Staff Writer
This article first appeared in the North Lake Tahoe Bonanza on Sunday, September 21, 2008
Incline Village and Crystal Bay have seen five foreclosures in 2008 — five more than in the five previous years combined.Those five are part of an increase in total foreclosures in Washoe County.Forclosures from one in 230 households in July of this year to one in 158 in August, according to RealtyTrac, a national foreclosure tracker. The national average for foreclosures is one in 416 households, according to the report, while the Nevada average is one in 91 households.Incline/Crystal Bay hasn’t seen a foreclosure since June, though, which was the fifth straight in a series of one foreclosure months, according to the Washoe County Assessor’s Office.There were no reported foreclosures in Incline/Crystal Bay from 2003 to 2007, a number Dan Ross, an official with the Assessor’s Office, said he is confident is accurate.Bill Ferrall, director of business relations for the Tahoe Lending Group, said the numbers of foreclosures didn’t surprise him because is Incline is unique in the Real Estate and lending markets.“Incline has a lot of high-net worth buyers who don’t have the liquidity issues you may find in Reno,” Ferrall said. “They just aren’t as prevalent up here.”Ferrall said hardships generally lead to foreclosures, such as medical issues or divorces. In the current market, though, Ferrall said the devaluation of homes is the largest factor contributing to foreclosures. He said paying a mortgage becomes a moot point for people who’s homes are losing money.“People have no incentive to pay any more when they are upside down on their mortgages,” Ferrall said.Ron Stichter, President-elect of the Incline Village Board of Realtors, said the people who were foreclosed on in Incline may have refinanced their homes with an adjustable rate mortgage, and when that rate adjusted higher they could no longer afford their loan.“Quite frankly, they couldn’t afford it,” Stichter said. “They just got themselves into trouble when they refinanced on the equity of their homes, and they may have had a good program, but they went in with the idea that they’d be able to afford their mortgage.”While Incline is still behind the rest of Washoe County in terms of foreclosures, Ferrall cautioned a few more could be on the way this year.While he couldn’t provide an estimate, Ferrall said based on the number of notice of defaults in Incline, which he said were about 20, more foreclosures may be imminent. He said the normal number of notices of defaults is generally 10. Homeowners generally work out a ‘cure’ with their bank or lender once a notice of default is issued, and if they don’t, their home goes into foreclosure.“The question is how many of those NODs don’t cure, and the chance is good that since we have double the normal number of NODs some of them won’t cure, which you can assume equates to more foreclosures.” Ferrall said.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
This article first appeared in the North Lake Tahoe Bonanza on Sunday, September 21, 2008
Incline Village and Crystal Bay have seen five foreclosures in 2008 — five more than in the five previous years combined.Those five are part of an increase in total foreclosures in Washoe County.Forclosures from one in 230 households in July of this year to one in 158 in August, according to RealtyTrac, a national foreclosure tracker. The national average for foreclosures is one in 416 households, according to the report, while the Nevada average is one in 91 households.Incline/Crystal Bay hasn’t seen a foreclosure since June, though, which was the fifth straight in a series of one foreclosure months, according to the Washoe County Assessor’s Office.There were no reported foreclosures in Incline/Crystal Bay from 2003 to 2007, a number Dan Ross, an official with the Assessor’s Office, said he is confident is accurate.Bill Ferrall, director of business relations for the Tahoe Lending Group, said the numbers of foreclosures didn’t surprise him because is Incline is unique in the Real Estate and lending markets.“Incline has a lot of high-net worth buyers who don’t have the liquidity issues you may find in Reno,” Ferrall said. “They just aren’t as prevalent up here.”Ferrall said hardships generally lead to foreclosures, such as medical issues or divorces. In the current market, though, Ferrall said the devaluation of homes is the largest factor contributing to foreclosures. He said paying a mortgage becomes a moot point for people who’s homes are losing money.“People have no incentive to pay any more when they are upside down on their mortgages,” Ferrall said.Ron Stichter, President-elect of the Incline Village Board of Realtors, said the people who were foreclosed on in Incline may have refinanced their homes with an adjustable rate mortgage, and when that rate adjusted higher they could no longer afford their loan.“Quite frankly, they couldn’t afford it,” Stichter said. “They just got themselves into trouble when they refinanced on the equity of their homes, and they may have had a good program, but they went in with the idea that they’d be able to afford their mortgage.”While Incline is still behind the rest of Washoe County in terms of foreclosures, Ferrall cautioned a few more could be on the way this year.While he couldn’t provide an estimate, Ferrall said based on the number of notice of defaults in Incline, which he said were about 20, more foreclosures may be imminent. He said the normal number of notices of defaults is generally 10. Homeowners generally work out a ‘cure’ with their bank or lender once a notice of default is issued, and if they don’t, their home goes into foreclosure.“The question is how many of those NODs don’t cure, and the chance is good that since we have double the normal number of NODs some of them won’t cure, which you can assume equates to more foreclosures.” Ferrall said.
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Friday, September 19, 2008
Fannie Mae & Freddie Mac
In recent news the announcement has been made that the Feds are taking over Fannie Mae and Freddie Mac. The markets reacted quickly and decisively to the news with rates dropping by 1/2%. For those buyers who were looking for a good reason to get off the fence and buy now, this could be it. Below are a few articles related to the takeover that are worth reading.
‘Frannie’ Bailout Makes Money Cheaper, Not Easier
Of particular note in this article, is the author’s belief that Fannie and Freddie will no longer guaranty Alt-A loans after the beginning of the year. This means that Stated Income loans will be much harder to find.
So, on the one hand, money becomes cheaper but it will also be much harder to get. For self-employed people who do everything possible to pay as little income taxes as possible, this is not going to be welcome news should it come to pass.
Fed Move on Fannie, Freddie is ‘Good News’
We couldn’t agree more with this article. Although it may be another taxpayer bailout, it was necessary to insure the stability of the real estate industry. As the article suggests, the government and thus taxpayers may actually make money by going down this road.
We certainly hope so, but we are not holding our breath on that score. In any event, it is great news for the real estate market, and should give a much needed shot in the arm to our market.
If you would like to get pre-approved for a loan, please let us know and we will put you in touch with one of the top lenders in Incline Village.
Have a wonderful week.
‘Frannie’ Bailout Makes Money Cheaper, Not Easier
Of particular note in this article, is the author’s belief that Fannie and Freddie will no longer guaranty Alt-A loans after the beginning of the year. This means that Stated Income loans will be much harder to find.
So, on the one hand, money becomes cheaper but it will also be much harder to get. For self-employed people who do everything possible to pay as little income taxes as possible, this is not going to be welcome news should it come to pass.
Fed Move on Fannie, Freddie is ‘Good News’
We couldn’t agree more with this article. Although it may be another taxpayer bailout, it was necessary to insure the stability of the real estate industry. As the article suggests, the government and thus taxpayers may actually make money by going down this road.
We certainly hope so, but we are not holding our breath on that score. In any event, it is great news for the real estate market, and should give a much needed shot in the arm to our market.
If you would like to get pre-approved for a loan, please let us know and we will put you in touch with one of the top lenders in Incline Village.
Have a wonderful week.
Wednesday, September 17, 2008
Housing Market In The News
Wall Street Shakeout Clouds Housing Picture - Lower Rates Could be Boon if Economy Doesn't Falter:
By Matt Carter, Monday, September 15, 2008, Inman News
Turmoil on Wall Street could mean lower interest rates for home buyers, but any benefit for housing markets could be outweighed by higher unemployment and a prolonged recession if the credit crunch becomes an even greater drag on the economy.
Lehman Brothers Holdings Inc. today filed for Chapter 11 bankruptcy protection, and Bank of America announced a $50 billion deal to acquire another troubled investment bank, Merrill Lynch. Giant insurer American International Group Inc., which reportedly needs to raise up to $40 billion in capital to avoid a downgrade from credit-rating agencies, reached a deal with New York regulators to raise about half of that amount from its subsidiaries.
As a whole, the day's news prompted a "flight to quality" by investors away from stocks and other risky investments into safer investments like bonds, pushing down long-term interest rates such as fixed-rate mortgages. Short-term rates soared, however, as banks became more reluctant to loan each other money. Central banks poured billions of liquidity into markets to stave off a lending freeze and bring short-term rates back down to targets.
The Federal Reserve said it was stepping its twice-monthly injections of capital through short-term auctions of cash to a weekly basis, and will take a broader range of collateral -- including stock -- for the loans, which will be increased from $175 billion to $200 billion a month. The European Central Bank held a $42.5 billion money-market auction, and 10 large international banks established a $70 billion emergency fund to to provide additional liquidity.
When the Federal Reserve's Open Market Committee holds its previously scheduled meeting Tuesday, some economists expect it will cut its target for the federal funds overnight rate by 25 or even 50 basis points. The committee halted a string of seven consecutive cuts in the federal funds overnight rate in June because of fears that inflation could get out of hand.
There's been speculation that the Fed would soon be forced to raise the overnight rate, currently at 2 percent, to combat inflation. But oil prices, which have been a major driver of inflation, fell well below $100 a barrel Monday, down from nearly $150 a barrel in July.
Lehman Brothers was reportedly forced to file for bankruptcy after the U.S. Treasury declined to finance a buyout of the nation's fourth-largest investment bank, as it did in March when it provided $29 billion in financing to help J.P. Morgan Chase take over Bear Stearns. Shares of Washington Mutual also plummeted today on fears that the bank won't be able to raise capital needed to offset mounting losses. In afternoon trading, the Dow Jones Industrial Average was off nearly 400 points.
Mark Zandi, chief economist at Moody's Economy.com, said there are two schools of thought on what the latest developments in the credit crunch could mean. They may be the catalyst for a chain of failures throughout the financial system, or a "cathartic event" in which weak links in the financial chain are repaired through mergers like the Bank of America and Merrill Lynch deal.
Under the darker scenario, there may be an additional $1.4 trillion in investor losses on top of the $600 billion seen so far, and unemployment could rise sharply into 2010, Zandi said in a commentary for Moody's Economy.com's Dismal Scientist newsletter. Under the more optimistic scenario -- which Zandi favors -- the financial crisis is closer to its end than its beginning. Investor losses are likely to total closer to $1 trillion total, and although the economy will remain "recession-like" well into 2009, employment will peak next fall, he said.
"Unlike Japan during the 1990s, the U.S. is willing to take its financial pain upfront," Zandi said. The Treasury Department's refusal to finance a buyout of Lehman suggests that policymakers don't envision collapse of the financial system.
With oil prices falling, strong growth in exports, and a sweeping housing bill signed into law in July set to take effect Oct. 1, optimists see the financial crisis at its apex, winding down by this time next year, Zandi said.
Zandi said evidence supporting an optimistic view includes improvements in housing affordability as prices decline; a peak in inventories of unsold homes; and the fact that mortgage loans are "cheaper and will soon be more ample given the government takeover of Fannie Mae and Freddie Mac."
By Matt Carter, Monday, September 15, 2008, Inman News
Turmoil on Wall Street could mean lower interest rates for home buyers, but any benefit for housing markets could be outweighed by higher unemployment and a prolonged recession if the credit crunch becomes an even greater drag on the economy.
Lehman Brothers Holdings Inc. today filed for Chapter 11 bankruptcy protection, and Bank of America announced a $50 billion deal to acquire another troubled investment bank, Merrill Lynch. Giant insurer American International Group Inc., which reportedly needs to raise up to $40 billion in capital to avoid a downgrade from credit-rating agencies, reached a deal with New York regulators to raise about half of that amount from its subsidiaries.
As a whole, the day's news prompted a "flight to quality" by investors away from stocks and other risky investments into safer investments like bonds, pushing down long-term interest rates such as fixed-rate mortgages. Short-term rates soared, however, as banks became more reluctant to loan each other money. Central banks poured billions of liquidity into markets to stave off a lending freeze and bring short-term rates back down to targets.
The Federal Reserve said it was stepping its twice-monthly injections of capital through short-term auctions of cash to a weekly basis, and will take a broader range of collateral -- including stock -- for the loans, which will be increased from $175 billion to $200 billion a month. The European Central Bank held a $42.5 billion money-market auction, and 10 large international banks established a $70 billion emergency fund to to provide additional liquidity.
When the Federal Reserve's Open Market Committee holds its previously scheduled meeting Tuesday, some economists expect it will cut its target for the federal funds overnight rate by 25 or even 50 basis points. The committee halted a string of seven consecutive cuts in the federal funds overnight rate in June because of fears that inflation could get out of hand.
There's been speculation that the Fed would soon be forced to raise the overnight rate, currently at 2 percent, to combat inflation. But oil prices, which have been a major driver of inflation, fell well below $100 a barrel Monday, down from nearly $150 a barrel in July.
Lehman Brothers was reportedly forced to file for bankruptcy after the U.S. Treasury declined to finance a buyout of the nation's fourth-largest investment bank, as it did in March when it provided $29 billion in financing to help J.P. Morgan Chase take over Bear Stearns. Shares of Washington Mutual also plummeted today on fears that the bank won't be able to raise capital needed to offset mounting losses. In afternoon trading, the Dow Jones Industrial Average was off nearly 400 points.
Mark Zandi, chief economist at Moody's Economy.com, said there are two schools of thought on what the latest developments in the credit crunch could mean. They may be the catalyst for a chain of failures throughout the financial system, or a "cathartic event" in which weak links in the financial chain are repaired through mergers like the Bank of America and Merrill Lynch deal.
Under the darker scenario, there may be an additional $1.4 trillion in investor losses on top of the $600 billion seen so far, and unemployment could rise sharply into 2010, Zandi said in a commentary for Moody's Economy.com's Dismal Scientist newsletter. Under the more optimistic scenario -- which Zandi favors -- the financial crisis is closer to its end than its beginning. Investor losses are likely to total closer to $1 trillion total, and although the economy will remain "recession-like" well into 2009, employment will peak next fall, he said.
"Unlike Japan during the 1990s, the U.S. is willing to take its financial pain upfront," Zandi said. The Treasury Department's refusal to finance a buyout of Lehman suggests that policymakers don't envision collapse of the financial system.
With oil prices falling, strong growth in exports, and a sweeping housing bill signed into law in July set to take effect Oct. 1, optimists see the financial crisis at its apex, winding down by this time next year, Zandi said.
Zandi said evidence supporting an optimistic view includes improvements in housing affordability as prices decline; a peak in inventories of unsold homes; and the fact that mortgage loans are "cheaper and will soon be more ample given the government takeover of Fannie Mae and Freddie Mac."
Monday, September 15, 2008
Incline Village Parks & Recreation Senior Moments Calendar
Welcome to September 2008 Senior Moments calendar. To see more information regarding all of these events, click here to visit our website.Fitness at the Incline Village Rec. Center - Senior Class Information
Click here for the schedule!
Senior Transportation Program
Tuesdays and Wednesdays in September - Catch a ride with the Senior Transportation Program. 24 hour advance reservations are required and available by calling (775) 832-1302. A suggested minimum donation of $2.00 +.50 per each additional destination.
Click here for the schedule!
Take-a-Hike Summer Series
Join us for our 55+ Take-a-Hike series for 2008! Bring your lunch, camera, sunscreen and water as we hike various local trails throughout the basin from 9:00am-1:30pm.
Mount Rose Meadows/Ophir Creek- Monday, September 22nd - 4 miles; roundtrip moderate to difficult.
Click here for details
55+ Full Moon Hike and Wine & Cheese Social
Join us as we hike to the Crystal Bay Fire Lookout from 7:30 pm-10:00 pm. Harvest Moon-Monday September 15th
Click here for details
Conversation Café
Join us Thursdays from 10:00am-11:00am at Aspen Grove for the next Conversation Café. Lively discussion, interesting people & good food make this the most talked about senior activity in the Village!
• September 4th – The Georgia crisis • September 11th – Critiquing the Democratic and Republican National Conventions • September 18th – What does it mean to be open minded? • September 25th – Comparison of the candidates healthcare platforms
Click here for more details
Brownbag Meetings, Workshops, Lectures and Presentations
The return of Lunch with Betsy begins on Thursday, September 11th! You won’t need to bring a brownbag lunch to this presentation as a wonderful, healthy luncheon will be prepared for you by Registered Dietician, Betsy Taylor. Come “Eat Your Heart Out” with Betsy as she lectures on the benefits of a heart healthy diet as we dine on Asian cuisine!
Calling all Veterans! Incline Village/Crystal Bay Veterans Club will have their monthly All Veterans Meeting on Thursday September 25th , 2008. Veterans and community members of all ages are welcomed to pack your lunch and join us as we determine projects that will benefit our community and the world.
Click here for details on these events.
Digital Photography Club
Meets on the first, third and last Thursday of the month from 2:30 pm-4:00 pm at Aspen Grove Click here for details.
September 11th - Fieldtrip to traveling photo exhibit at SNC campus on the 3rd floor of the Prim Library, "Sudan: The Land, and the People." September 18th - Enjoy a DVD Presentation at Aspen Grove September 25th Photo shoot - Meet at Aspen Grove at 2:30pm and travel as a group to the TBD photo shoot location.
Fireside Chats
Fireside Chats are back at SNC! Thursday, September 18th - Visit with Andy Whyman and his guest, Sierra Nevada College President, Bob Maxson. Thursday, September 25th - Meet Incline Village icon and former SNC Professor - Bill Redel, up close and personal.
Click here for moreinformation.
Incliners Social Club
The club meets from 5:30 pm-9:00 pm. Join us on the first and third Tuesday of the month.
September 2nd– Join the Incliner’s at the Chateau for their monthly Potluck and Bingo Night. September 16th– “Past Presidents Night”. Dinner reservations are required and can be made by mailing your check ($20/members $25/guests) to Incliners, PO Box 3244, Incline Village, NV 89450 or by calling Nancy Manter (775) 831- 6667.
Click here for details!
Community, Employment and Volunteer Opportunities
9/9 - Drop-in Surf N' Turf Boot Camp: Incline Village Recreation Center, 5:30-6:30pm.9/10 - Board of Trustee Meeting: Incline Village General Improvement District Administration Office, 6:30pm.9/13 - Two Day Golf School for Women: September 13 & 14. Led by Becca Carey LPGA professional, for more information call 832-12759/14 - Child Safety & Protection Festival & Sheriff's Picnic: Village Green, 10am-2pm, Free event.9/18 - Sink 'Em & Hold 'Em Golf and Poker Tournament: Championship Golf Course. For more information call Children's Cabinet 775-298-0004 info@sinkem.org 9/24 - Board of Trustee Meeting: Incline Village General Improvement District Administration Office, 3:00 pm9/29 - Adult Co-Ed Indoor Soccer Season Begins: Incline Village Recreation Center, 6-10pm, M & Th. 9/30 - Last Day to purchase 2009 Diamond Peak passes at the early bird rate. 2008 Fall Adult Volleyball league Registration Deadline
This was published with permission from Incline Village Parks & Recreation
Friday, September 12, 2008
Mortgage Rates Drop- Government takeover of Fannie and Freddie
Editor’s Note: Freddie Mac released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage averaged 5.93 percent with 0.7 point for the week ending September 11, 2008, down from last week when it averaged 6.35 percent. Last year at this time, the 30-year FRM averaged 6.31 percent. This is the opportunity buyers have been waiting for to lock in a low rate and take advantage of this large inventory of homes. Low rates and low home prices will not coincide much longer, as rates should trend up going forward, to hedge inflationary fears. Now is the time to buy.
View the Mortgage Market Survey here.
The federal government takes over Fannie Mae and Freddie Mac. Interest rates decline. A greater sense of security grows in the mortgage market. Mortgage-backed securities have one of the world’s most secure buyers. This is all good news, but there are Fannie and Freddie stockholders who will simply lose their investment, and there are taxpayers–all of us–who will pay to keep the system truly solvent. And we don’t really know what will become of our mortgage industry in the near- to mid-term future.
Steve Peterson888-232-7687 office/ 775-219-7151 cell
Weekly Commentary
Thumbnail Sketch: The story of the week, if not of the decade, is that the government took over Fannie Mae and Freddie Mac. The consensus view: “It had to be done.”
No one is particularly happy about this event, but it is clear, from the haste with which the Treasury and Fed moved this past week, that there was an intense effort to stave off likely approaching panic about the weaknesses to be found in the two secondary market giants. For example, we learned that the fiscal reserves of the agencies had been greatly overstated. (Accounting techniques were blamed, but let’s face it, the markets were about to lose most of their confidence in the future of these corporations.)
So now we have a mortgage market that is effectively run by the U.S. government.
As you can see to the left, mortgage rates already seem to be declining because the federal takeover eliminates most of the uncertainties about whether we’ll have a viable mortgage financing system in the future. (The federal backing of Fannie and Freddie’s mortgage-backed securities, after all, is now explicit, rather than implicit.) The average rate on the 30-year fixed-rate mortgage is down by about a quarter of a percent. We can read this as something of a vote of confidence.
“The government’s action will have a beneficial effect on some mortgages, but not all. It will have little or no impact on jumbo mortgages — home loans for large amounts,“ writes Holden Lewis for Bankrate.com. “The government’s bailout of Fannie and Freddie won’t affect rates on home equity loans or home equity lines of credit, either.”
The long-term effects and results of this takeover are nearly impossible to predict. How will they be run? How soon will they be privatized again and in what form? What changes will this bring to the way mortgages are written in our nation and, most likely, in the world? Mark Zandi, chief economist of Moody’s Economy.com, acknowledges the far-reaching questions but points out that “the immediate impact of the takeover will be to lower mortgage rates and increase the availability of mortgage credit.” And that should help to hasten a meaningful recovery in the real estate market as well as the overall economy.
Still, it will cost Fannie and Freddie’s shareholders a great deal and also cost the American taxpayer, and the latter will doubtless be the subject of many angry editorials. An outright failure of Fannie and Freddie, though, would have been potentially devastating. Take the editorials, therefore, with at least a partial grain of salt.
For Additional Information please feel free to contact our office:
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
email: Alvins@cbivr.com
View the Mortgage Market Survey here.
The federal government takes over Fannie Mae and Freddie Mac. Interest rates decline. A greater sense of security grows in the mortgage market. Mortgage-backed securities have one of the world’s most secure buyers. This is all good news, but there are Fannie and Freddie stockholders who will simply lose their investment, and there are taxpayers–all of us–who will pay to keep the system truly solvent. And we don’t really know what will become of our mortgage industry in the near- to mid-term future.
Steve Peterson888-232-7687 office/ 775-219-7151 cell
Weekly Commentary
Thumbnail Sketch: The story of the week, if not of the decade, is that the government took over Fannie Mae and Freddie Mac. The consensus view: “It had to be done.”
No one is particularly happy about this event, but it is clear, from the haste with which the Treasury and Fed moved this past week, that there was an intense effort to stave off likely approaching panic about the weaknesses to be found in the two secondary market giants. For example, we learned that the fiscal reserves of the agencies had been greatly overstated. (Accounting techniques were blamed, but let’s face it, the markets were about to lose most of their confidence in the future of these corporations.)
So now we have a mortgage market that is effectively run by the U.S. government.
As you can see to the left, mortgage rates already seem to be declining because the federal takeover eliminates most of the uncertainties about whether we’ll have a viable mortgage financing system in the future. (The federal backing of Fannie and Freddie’s mortgage-backed securities, after all, is now explicit, rather than implicit.) The average rate on the 30-year fixed-rate mortgage is down by about a quarter of a percent. We can read this as something of a vote of confidence.
“The government’s action will have a beneficial effect on some mortgages, but not all. It will have little or no impact on jumbo mortgages — home loans for large amounts,“ writes Holden Lewis for Bankrate.com. “The government’s bailout of Fannie and Freddie won’t affect rates on home equity loans or home equity lines of credit, either.”
The long-term effects and results of this takeover are nearly impossible to predict. How will they be run? How soon will they be privatized again and in what form? What changes will this bring to the way mortgages are written in our nation and, most likely, in the world? Mark Zandi, chief economist of Moody’s Economy.com, acknowledges the far-reaching questions but points out that “the immediate impact of the takeover will be to lower mortgage rates and increase the availability of mortgage credit.” And that should help to hasten a meaningful recovery in the real estate market as well as the overall economy.
Still, it will cost Fannie and Freddie’s shareholders a great deal and also cost the American taxpayer, and the latter will doubtless be the subject of many angry editorials. An outright failure of Fannie and Freddie, though, would have been potentially devastating. Take the editorials, therefore, with at least a partial grain of salt.
For Additional Information please feel free to contact our office:
Alvin Steinberg, CRS
Coldwell Banker Incline Village Realty
917 Tahoe Blvd., Suite 103
Incline Village, NV 89451
800.666.4718 Toll Free
775.832.1888 Direct
775.832.1889 Fax
www.LivingLakeTahoe.com
email: Alvins@cbivr.com
Wednesday, September 10, 2008
Safely Refinance a 1031 Property
Refinancing Before or After an Exchange
Seasoned 1031 exchangers know that if they receive cash in an exchange, rather than investing it in the replacement property, the transaction will be partially taxable. It's not surprising, therefore, that many real estate investors plan to refinance the relinquished property immediately before an exchange, or the replacement property immediately after an exchange, in order to get cash out of the property without being taxed.
Although it is possible to refinance before or after an exchange without triggering tax, investors should carefully consider their options before doing this, because the IRS could take the position that the refinancing should be taxable when it is done to get around the 1031 exchange rules rather than for a separate business purpose. Despite this risk, an investor can refinance the relinquished or replacement properties and get tax free cash, as long as he establishes that the refinance had "independent economic substance" and wasn't done merely to get around the 1031 exchange rules.
Every situation is different, and investors should discuss their plans with their tax advisors, but here are a few suggestions that may help investors structure a refinance so that the funds received are not taxable:
1. The loan should have a clear business purpose (other
than just getting the equity out of the property) and that
business purpose should be well documented in the
investor's files.
2. The refinance should occur as far away in time as possible
from the closing of the relinquished or replacement
properties. 3. The refinance should be documented as a separate
transaction and should not appear on the same closing
statement as the closing of the relinquished or replacement
properties.
Some tax advisors believe that it is better to refinance the replacement property after an exchange rather than refinancing the relinquished property before an exchange. In any event, it is important to consider the risks and discuss your plans with your tax advisor.
1031 Tax-Deferred Exchange Webinar
"AN INTRODUCTION TO 1031 EXCHANGES"Tuesday, September 16 at 11:00 AM - 11:45 AM PST
Presented by:
Brenden Faber, Esq. - President of First American Exchange
You will learn:
What is a 1031 Exchange?What is 'like-kind'?What is Capital Gain?What are the requirements?What are the timeframes for a 1031 Exchange?How do I select a Qualified Intermediary?
CLICK HERE TO REGISTER
Seasoned 1031 exchangers know that if they receive cash in an exchange, rather than investing it in the replacement property, the transaction will be partially taxable. It's not surprising, therefore, that many real estate investors plan to refinance the relinquished property immediately before an exchange, or the replacement property immediately after an exchange, in order to get cash out of the property without being taxed.
Although it is possible to refinance before or after an exchange without triggering tax, investors should carefully consider their options before doing this, because the IRS could take the position that the refinancing should be taxable when it is done to get around the 1031 exchange rules rather than for a separate business purpose. Despite this risk, an investor can refinance the relinquished or replacement properties and get tax free cash, as long as he establishes that the refinance had "independent economic substance" and wasn't done merely to get around the 1031 exchange rules.
Every situation is different, and investors should discuss their plans with their tax advisors, but here are a few suggestions that may help investors structure a refinance so that the funds received are not taxable:
1. The loan should have a clear business purpose (other
than just getting the equity out of the property) and that
business purpose should be well documented in the
investor's files.
2. The refinance should occur as far away in time as possible
from the closing of the relinquished or replacement
properties. 3. The refinance should be documented as a separate
transaction and should not appear on the same closing
statement as the closing of the relinquished or replacement
properties.
Some tax advisors believe that it is better to refinance the replacement property after an exchange rather than refinancing the relinquished property before an exchange. In any event, it is important to consider the risks and discuss your plans with your tax advisor.
1031 Tax-Deferred Exchange Webinar
"AN INTRODUCTION TO 1031 EXCHANGES"Tuesday, September 16 at 11:00 AM - 11:45 AM PST
Presented by:
Brenden Faber, Esq. - President of First American Exchange
You will learn:
What is a 1031 Exchange?What is 'like-kind'?What is Capital Gain?What are the requirements?What are the timeframes for a 1031 Exchange?How do I select a Qualified Intermediary?
CLICK HERE TO REGISTER
Monday, September 8, 2008
Feds Take Control of Fannie Mae, Freddie Mac
Sam Zuckerman, Chronicle Staff Writer
Monday, September 8, 2008
The federal government took control of Fannie Mae and Freddie Mac on Sunday in a bid to keep the two mortgage giants from failing, catastrophes that would have made home loans harder to get and taken the nation's housing collapse to a new level of crisis.
The government agreed to pump billions of dollars into Fannie Mae and Freddie Mac and assume responsibility for trillions of dollars of their debt, while handing control of the companies to federal regulators. The takeovers mark the most dramatic government effort thus far to stem the financial chaos precipitated by the housing bust. At the same time, seizure of the two could ultimately cost taxpayers tens of billions of dollars, experts estimate, widening an already bloated federal deficit.
Officials said they moved because the potential failure of the companies threatened incalculable harm to the mortgage market, the financial system and the broader economy. Fannie Mae and Freddie Mac bankruptcies would have left them unable to finance mortgages, potentially wreaking more havoc than a failure of brokerage giant Bear Stearns, whose near collapse and government-forced sale earlier this year sent credit markets around the world into a panic.
"Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe," said Treasury Secretary Henry Paulson. "A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance."
Democratic leaders, including presidential nominee Barack Obama, said government intervention was necessary to keep the housing crisis from worsening.
Outside experts said the takeovers could stabilize the home loan market, making mortgages cheaper and easier to get. That, in turn, could act to limit any further downward spiral in home prices.
"The housing and mortgage market should benefit from the actions," said Sung Won Sohn, an economist at California State University Channel Islands in Camarillo (Ventura County). "Mortgage rates should be lower than they would be without the government guarantee."
How it works
Fannie Mae and Freddie Mac don't offer mortgages themselves. But they play a central, perhaps irreplaceable, role in the American system of home finance. Together, the two companies own or guarantee more than $5 trillion in mortgages, almost half the total outstanding in the United States.
They buy mortgages from banks and others lenders that make the loans, either keeping them as investments or packaging them for resale to investors. This ready market for mortgages multiplies the capacity of front-line lenders such as Wells Fargo and Washington Mutual to make loans and allows them to offer lower interest rates.
Fannie Mae and Freddie Mac accept only high-quality mortgages made to borrowers who meet strict financial standards. They buy only so-called conforming loans, mortgages made to prime borrowers up to a limit that varies by locality. In San Francisco, the conforming loan limit was recently raised to $729, 750.
Yet, as the housing boom has turned into a bust, even top-notch borrowers have fallen behind on their mortgages or defaulted altogether. The two companies have posted billions of dollars in losses, crippling their ability to raise money and buy additional loans, ultimately threatening their survival.
Congress chartered Fannie Mae in 1938 as the Federal National Mortgage Association and created Freddie Mac in 1970. Both later were reorganized as private, for-profit companies and sold off to shareholders. But their beginnings as government-sponsored enterprises and the vital part they play in the housing market convinced many experts that they were "too big to fail," meaning the government would not let them go under.
That implicit guarantee permitted the two companies to borrow money at nearly the same low rate as the federal government. Their ability to get money cheaply meant they could buy loans with low interest rates and still make a profit, a key factor in keeping mortgages affordable in the United States. In recent months though, the interest rates they have had to pay has jumped as skittish lenders backed off, despite the assumed federal protection.
Sunday's developments transformed the too-big-to-fail doctrine from a theory to a reality. Nonetheless, it's not a full bailout. Top Fannie Mae and Freddie Mac executives are being replaced and the companies will be put under the supervision of conservators. The companies will be forced to stop lobbying efforts.
Dividends suspended
Dividends to shareholders are suspended. And if losses continue, common shareholders, in two of the most widely held stocks in the United States, could find their stock worthless. However, holders of Fannie Mae and Freddie Mac mortgage securities and other debt will be paid in full.
The takeovers mean that if the capital of the two companies is wiped out, any further losses would be covered by the federal government. Given that home prices are still falling, it's probable that the government will have to pump many billions into the two companies, analysts say. Several months ago, the Congressional Budget Office estimated the potential cost of Fannie Mae and Freddie Mac takeovers at roughly $25 billion.
"The markets are still going down," said Dean Baker, an economist with the Center for Economic and Policy Research in Washington. "They're already holding debt that will go bad. And if they continue to make bad loans, it could get much worse. I would be surprised if we get off for less than $50 billion, and it could easily be as much as $100 billion."
The ultimate fate of the two companies remains in doubt. Some Democrats want to transform Fannie Mae and Freddie Mac into government agencies. Some conservatives want to keep them private and break them up into smaller companies.
"It's not clear at all what the government plans to do," said Michael Carney, professor of financial institutions at California Polytechnic State University Pomona.
Rescue provisions
The government's financial rescue of mortgage companies Fannie Mae and Freddie Mac includes the following provisions:
-- The two companies will modestly increase their holdings of mortgage securities through 2009, growth that is needed to stabilize the mortgage market. After that, they will be required to cut back their direct mortgage holdings to reduce risk.
-- The Treasury Department will buy up to $100 billion in preferred stock from each of the companies to ensure they have capital and are able to pay off their private debt.
-- Treasury will also lend directly to Fannie Mae and Freddie Mac as needed through 2009.
-- The department will buy mortgage securities from brokers to help keep the market healthy.
Source: U.S. Treasury Department
E-mail Sam Zuckerman at szuckerman@sfchronicle.com.
This article appeared on page A - 1 of the San Francisco Chronicle
Monday, September 8, 2008
The federal government took control of Fannie Mae and Freddie Mac on Sunday in a bid to keep the two mortgage giants from failing, catastrophes that would have made home loans harder to get and taken the nation's housing collapse to a new level of crisis.
The government agreed to pump billions of dollars into Fannie Mae and Freddie Mac and assume responsibility for trillions of dollars of their debt, while handing control of the companies to federal regulators. The takeovers mark the most dramatic government effort thus far to stem the financial chaos precipitated by the housing bust. At the same time, seizure of the two could ultimately cost taxpayers tens of billions of dollars, experts estimate, widening an already bloated federal deficit.
Officials said they moved because the potential failure of the companies threatened incalculable harm to the mortgage market, the financial system and the broader economy. Fannie Mae and Freddie Mac bankruptcies would have left them unable to finance mortgages, potentially wreaking more havoc than a failure of brokerage giant Bear Stearns, whose near collapse and government-forced sale earlier this year sent credit markets around the world into a panic.
"Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe," said Treasury Secretary Henry Paulson. "A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance."
Democratic leaders, including presidential nominee Barack Obama, said government intervention was necessary to keep the housing crisis from worsening.
Outside experts said the takeovers could stabilize the home loan market, making mortgages cheaper and easier to get. That, in turn, could act to limit any further downward spiral in home prices.
"The housing and mortgage market should benefit from the actions," said Sung Won Sohn, an economist at California State University Channel Islands in Camarillo (Ventura County). "Mortgage rates should be lower than they would be without the government guarantee."
How it works
Fannie Mae and Freddie Mac don't offer mortgages themselves. But they play a central, perhaps irreplaceable, role in the American system of home finance. Together, the two companies own or guarantee more than $5 trillion in mortgages, almost half the total outstanding in the United States.
They buy mortgages from banks and others lenders that make the loans, either keeping them as investments or packaging them for resale to investors. This ready market for mortgages multiplies the capacity of front-line lenders such as Wells Fargo and Washington Mutual to make loans and allows them to offer lower interest rates.
Fannie Mae and Freddie Mac accept only high-quality mortgages made to borrowers who meet strict financial standards. They buy only so-called conforming loans, mortgages made to prime borrowers up to a limit that varies by locality. In San Francisco, the conforming loan limit was recently raised to $729, 750.
Yet, as the housing boom has turned into a bust, even top-notch borrowers have fallen behind on their mortgages or defaulted altogether. The two companies have posted billions of dollars in losses, crippling their ability to raise money and buy additional loans, ultimately threatening their survival.
Congress chartered Fannie Mae in 1938 as the Federal National Mortgage Association and created Freddie Mac in 1970. Both later were reorganized as private, for-profit companies and sold off to shareholders. But their beginnings as government-sponsored enterprises and the vital part they play in the housing market convinced many experts that they were "too big to fail," meaning the government would not let them go under.
That implicit guarantee permitted the two companies to borrow money at nearly the same low rate as the federal government. Their ability to get money cheaply meant they could buy loans with low interest rates and still make a profit, a key factor in keeping mortgages affordable in the United States. In recent months though, the interest rates they have had to pay has jumped as skittish lenders backed off, despite the assumed federal protection.
Sunday's developments transformed the too-big-to-fail doctrine from a theory to a reality. Nonetheless, it's not a full bailout. Top Fannie Mae and Freddie Mac executives are being replaced and the companies will be put under the supervision of conservators. The companies will be forced to stop lobbying efforts.
Dividends suspended
Dividends to shareholders are suspended. And if losses continue, common shareholders, in two of the most widely held stocks in the United States, could find their stock worthless. However, holders of Fannie Mae and Freddie Mac mortgage securities and other debt will be paid in full.
The takeovers mean that if the capital of the two companies is wiped out, any further losses would be covered by the federal government. Given that home prices are still falling, it's probable that the government will have to pump many billions into the two companies, analysts say. Several months ago, the Congressional Budget Office estimated the potential cost of Fannie Mae and Freddie Mac takeovers at roughly $25 billion.
"The markets are still going down," said Dean Baker, an economist with the Center for Economic and Policy Research in Washington. "They're already holding debt that will go bad. And if they continue to make bad loans, it could get much worse. I would be surprised if we get off for less than $50 billion, and it could easily be as much as $100 billion."
The ultimate fate of the two companies remains in doubt. Some Democrats want to transform Fannie Mae and Freddie Mac into government agencies. Some conservatives want to keep them private and break them up into smaller companies.
"It's not clear at all what the government plans to do," said Michael Carney, professor of financial institutions at California Polytechnic State University Pomona.
Rescue provisions
The government's financial rescue of mortgage companies Fannie Mae and Freddie Mac includes the following provisions:
-- The two companies will modestly increase their holdings of mortgage securities through 2009, growth that is needed to stabilize the mortgage market. After that, they will be required to cut back their direct mortgage holdings to reduce risk.
-- The Treasury Department will buy up to $100 billion in preferred stock from each of the companies to ensure they have capital and are able to pay off their private debt.
-- Treasury will also lend directly to Fannie Mae and Freddie Mac as needed through 2009.
-- The department will buy mortgage securities from brokers to help keep the market healthy.
Source: U.S. Treasury Department
E-mail Sam Zuckerman at szuckerman@sfchronicle.com.
This article appeared on page A - 1 of the San Francisco Chronicle
Friday, September 5, 2008
How "green" are you?
How “green” is your home?
With websites, television shows and propaganda around every corner the pressure to become eco-friendly has risen to an encouraging rate. One can recycle everything from cans and bottles to paper and cardboard; and with convenient curbside pickup and near by drop-off locations there just NO GOOD reason not to!
Now here in Lake Tahoe we all drive around with “Keep Tahoe Blue” stickers and “Keep Truckee Green,” but does everyone actually do their part? Stricter BMP and erosion control efforts have been underway in recent years; which have contributed to a substantial reduction in the pollution of the lake. If we continue to be negligent about our own efforts to recycle & reduce and meanwhile we are in persistently revegging and replanting to prevent sediments from draining into the lake- aren’t we fighting ourselves here?
There are plenty of websites that not only encourage recycling, but can instruct those of us who may find it too difficult or time consuming to fit into our already routine schedules. So take a moment to review and educate yourselves and really contribute to making our environment a beautiful, sustainable place to live!!
IVGID Recycling Resources
Other Additional Resources:
HGTV-Green Home
Earth 911
With websites, television shows and propaganda around every corner the pressure to become eco-friendly has risen to an encouraging rate. One can recycle everything from cans and bottles to paper and cardboard; and with convenient curbside pickup and near by drop-off locations there just NO GOOD reason not to!
Now here in Lake Tahoe we all drive around with “Keep Tahoe Blue” stickers and “Keep Truckee Green,” but does everyone actually do their part? Stricter BMP and erosion control efforts have been underway in recent years; which have contributed to a substantial reduction in the pollution of the lake. If we continue to be negligent about our own efforts to recycle & reduce and meanwhile we are in persistently revegging and replanting to prevent sediments from draining into the lake- aren’t we fighting ourselves here?
There are plenty of websites that not only encourage recycling, but can instruct those of us who may find it too difficult or time consuming to fit into our already routine schedules. So take a moment to review and educate yourselves and really contribute to making our environment a beautiful, sustainable place to live!!
IVGID Recycling Resources
Other Additional Resources:
HGTV-Green Home
Earth 911
Monday, September 1, 2008
8 STEPS TO GETTING YOUR FINANCES IN ORDER
1. Develop a Family Budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.
2. Reduce your Debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt--car loans, student loans, revolving balances on credit cards--down to between 8 percent and 10 percent of your total income.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.
4. Increase your income. It may be necessary to take on a second, part-time job to get you income at a high-enough level to qualify for the home you want.
5. Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down--oreven less in some cases--you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.
6. Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all you other bills Pay off the entire balance promptly.
2. Reduce your Debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt--car loans, student loans, revolving balances on credit cards--down to between 8 percent and 10 percent of your total income.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.
4. Increase your income. It may be necessary to take on a second, part-time job to get you income at a high-enough level to qualify for the home you want.
5. Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down--oreven less in some cases--you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.
6. Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all you other bills Pay off the entire balance promptly.
Subscribe to:
Posts (Atom)
