Category

Buyers

May 29
0

Get Rich Quick Scheme

By | Buyers, Economy, Investing in Real Estate, Retirement, Sonoma County info, Wine Tasting, Winery with picnic place | No Comments

“Ora et Labora”, historically the mantra of the Northern provinces of the Netherlands. Totally opposite of this are the “Get Rich Quick Schemes” -> if it is too goo to be true… What does this have to do with Real Estate? Well, Real Estate is a great way to built wealth, to built a nest egg HOWEVER, it is not a quick rich scheme. It is consistent and stable, despite the ‘hick-up’ we had. The quick rich schemes in Real Estate in the roaring 2003/2006 didn’t work, initially the majority of all the foreclosures were non owner occupied, victims of these schemes. Not built on cash flow but solely on appreciation, hence the problem. Did you know we still has an increase of 30.14% since 2000 despite the negative economic factors?

What does this have to do with you? Real Estate is still a good way to built money for retirement, just as part of a good financial strategy. AND there is a need for rental housing: on average about 33% of all adult Americans need housing and are not in a position to buy. In the USA this is not provided by the government (as it is in Netherlands ->the local department of housing provides rentals) but provided by private investors. The reason for all the tax benefits for owning investment property.

Myth:you need to be rich to invest in real estate. Fact: median income for an investor in 2010 was $87,600. Myth: you need cash to buy properties for investment. Fact: there are great mortgage products available. And Self Directed IRA’s that allow you to invest in Real Estate.

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This overview of historic values in Real Estate speaks for yourself. We all know what happened in the 3 years we had negative appreciation. But do you also see it’s a tad bit above the 0% again. Just a but and that is GOOD, that is what we like to see. Do you know what this also means? That now is a great time to invest in real estate, the numbers haven’t been this good in a long time, in Sonoma County the last time we had this was about 27 years ago.

And although Real Estate is fun, don’t forget to enjoy the good things in life, next week Windsor Oaks Winery has a ‘Chillin’ by the Pinot Pond party. Julie and Doug are passionate about wine and are happy to share their passion and knowledge about wines with you.

Enjoy,

Mirjam

May 22
0

Real Estate and Inflation

By | Buyers, Economy, RE Investing, Sonoma County info | No Comments

When you buy a home you stop inflation on your housing expenses. What does that mean for you? leerdam.jpg

Ask your grandparent, your parents, maybe a neighbor who has lived in his/her house for 30 years: what did they pay for their house, OR for how much did they pay in rent… Get it? The first home we bought when we lived in the Netherlands was on the Tiendweg in Leerdam . It was built in the 1930-s and these homes initially sold for a whopping 3,000 to 5,000 Guilders each… Right now this around 445,000 Euro (Euro is 2 guilders) Back to Sonoma County, the homes in Montgomery village in Santa Rosa, when these homes were built in the 1950-s they sold for the unthinkable price of 5,000 Dollars, considered expensive in these days.

But then again, ask the same grandparents, how much they paid for a loaf of bread…

My CPA George Hougthon uses as rule of thumb: every 30 years add a zero, to both buying a house and renting a house… Looking back in history: the time when people rented a house for $200 a month is not that long ago… Right now expect to pay $2,000 a month to rent a house…

Buying real estate is smart, inflation is just one reason… And think about investing in real estate in the context of inflation. Investing in real estate is a smart way to built a nest egg.

What are your thoughts?

Mirjam

May 15
0

Sonoma County from a Dutch perspective…

By | Buyers, Sonoma County info, Visit WineCountry, Wine | One Comment

This week I had the honor to meet with Anthony Ebright, a lender who works for Wells Fargo. Anthony is not only specialized in FHA/VA loan products but is also a fervent blogger and integrator of social media. After brainstorming he mentioned that he would love to see my stories from my Dutch perspective.

This has gotten a lot of thought and I will take up the challenge. The theme of this blog will be changing a little: Real Estate and Real Living in Sonoma County from a Dutch perspective.

I know you all think all Dutch people wear wooden shoes -they are practical for yard work- and live in windmills. Well, there is more to Netherlands than that. More in the coming time.dutch-wooden-shoes.jpg

Did you know that Sonoma County has a lot in common with Netherlands? For one thing, both are dealing with levees to protect parts of the land.  However in Netherlands you pay for this through your property taxes as a special assessment.

Right now, real estate in Sonoma County is on sale, or affordability rate is around 67 %, a historic high, for many it is just as expensive to buy as to rent, upon request, I will supply you with examples, just send me an email.

As for today, enjoy this beautiful Dutch weather in Sonoma County with a cup of hot Van Houten Chocolate or a nice Seghesio Sonoma Zin , the best of both worlds.

Mirjam

Mar 27
0

Buyers… and Sellers

By | Buyers, Foreclosure, Sellers, Short Sale, Sonoma County info | No Comments

Statement for today: when you as a buyer are frustrated with the seller or the sales process, please keep in mind: it’s most likely not your intention to create a life long friendship with that seller, you are interested in the house. It would be nice if everything works out well and amicable. However in today’s market there are so many frustrations, as a buyer it’s important to keep your goal in mind: you like to buy the house, that’s it. Even if the seller is …… that’s should not be a reason to walk away from a sale. It is OK not to like the seller. The same when it is the other way around by the way.

There are many reasons a situation gets tense: a seller is unreasonable as to concessions for repairs, doesn’t accept it when an appraisal comes in lower than the agreement purchase price, in case of a divorce, one party agrees, the other doesn’t… to name a few.

Same is the other way around: lending situations  are changing constantly, what used to be a easy process has become an obstacle course where banks are asking for more and more information while the process is in place: more documentation from a buyer, extra reviews. All these situations will quite often extent a sale.

During the process it’s sometimes good to take a step back and realize that frustrations are the result of expectations that didn’t work out… for both parties. Discuss your frustrations with your Realtor and keep the big picture in mind: the new house, the new neighborhood, the ability to move on with your life.

And don’t forget to smell the roses, or take the afternoon of and do something fun. Sonoma County is a beautiful place to life.

Mirjam

Feb 27
0

Septic Systems

By | Buyers, Disclosures, Sellers, Sonoma County info | No Comments

A lot of people in Sonoma County have septic systems -including yours truly-. There are a lot of vacant parcels, or parcels that need a update on their septic system. Thought enclosed info about how the septic design process works might be interesting.Thank you  Jim Glomb, Geotechnical & Environmental Consultant for sharing this:

When constructing a rural property, or improving an existing property, the septic system is an integral component that requires a septic design professional who is up-to-date with regulations and health and safety requirements.

The first step in the Septic Design process for an undeveloped parcel is a Preliminary Site Evaluation. The Preliminary Site Evaluation evaluates the site?s potential to meet the homeowner?s goals and identifies the best areas for on-site wastewater disposal. The Preliminary Site Evaluation begins with identifying site attributes such as topography, vegetation, drainage and geology.  The Preliminary Site Evaluation also includes exploration of soil deposits to determine subsurface conditions relative to septic system use. This is followed by design level Soil Profiles using a backhoe in the presence of a County Health Inspector, if necessary, groundwater monitoring, percolation testing, and site mapping will also be performed.

The Percolation Test data, Groundwater Monitoring observations, and Soil Profiles are incorporated into a design report with recommendations and specifications for the optimal wastewater treatment for the parcel. This report is submitted  to the county for  review and concurrence.

There are many different septic systems and the requirements for septic systems have recently changed, the permit department of Sonoma County has great information.

When buying distressed property this is something to keep in mind: would you like to remodel that lovely fixer with the great views? Seems like a great buy, do your homework as to the septic system, might prevent you from unpleasant surprises.

Mirjam