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Sonoma County info

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

Apr 10
0

60% of all Foreclosed Homeowners….

By | Foreclosure, Making Home Affordable, Short Sale, Sonoma County info | No Comments

On March 29th, Alex Charfen from the CDPE Institute did a webinar with Rick Sharga from RealtyTrac – the leading online market place for foreclosed properties.

Besides the fact that foreclosure activity has increased on a year-over-year basis for 52 consecutive months from January 2006 through April 2010 and 2010 set a new record with 2.9 million home receiving foreclosure notices there was a number that was more disturbing to yours truly…

February 2011 Foreclosure Rate Heat Map:

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About 60% of all home owners who were foreclosed on never contacted the bank as to foreclosure alternatives. You might react, well a lot of people never got through to the bank when they called. After thinking about this, I am not so sure about that. Every time you call the loan servicer, the person you talk to asks your loan number, your SS number etc to make sure you are the home owner or person who is either authorized on the loan and they put the call into their system… This means that the 60% should be fairly accurate, give or take some.

About 2.5 years ago this percentage was 62%… So with all the government programs, the advertising etc we only gained 2%… That is disturbing… But then again, everyone responds different to financial distress and a lot of distressed home owners do NOT open the mail sent by the banks to inform them about the help available.

This means that friends and family members need to help… If you have a feeling your friend or family member is in trouble financially, have the courage and share them info about help available and tell them to open the mail from the bank.

As a CDPE trained agent, I am offering help to all the people who are referred to me ad I know of many other great Realtors doing the same.

“It is trouble that “never comes” that causes the loss of sleep.” -Chas. Austin Bates

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