A Higher Authority

A fairly grim article from the Wall Street Journal. Not a lot a new news here, assuming you've been reading our posts for the past few months, but we found it useful to see a national authority like the Journal essentially echoing what we've been saying about our region. Enjoy (if possible).

Ups and Downs

Remember back on August 19 when we tooted our own horn about predicting the next move in the broader real estate market? For months we'd been telling you that home sales would spike dramatically when prices got low enough and foreclosure rate rose high enough. It started back in August and it's only continuing as we near year end. Our belief is that this buying up of bargain property is the first necessary move toward the stabilization and slow recovery of the State's real estate market. The inventory is being appropriately reduced. When supply gets low enough, prices will flatten out. It will take time, but we believe we are sowing the seeds of recovery.

Moving On Up

Are you on the move? Good news. Next Generation is now a sponsor with One Simple Move™. Our clients can now register with this exceedingly helpful website and get valuable help, resources, and coupons to assist with their move. One Simple Move™ offers free move planning guides, checklists, and move coordination services. If you or anyone you know is planning a move, we urge you to take advantage of this service. It's free, courtesy of Next Generation Real Estate. There will be a permanent link in the link list on the right of this page. Register today and get immediate help with your next move.

ARM And (Not) A Leg

Adjustible rate mortgages have largely fallen out of favor these days. Blamed for the mortgage crisis and, by extension, the financial crisis, ARMs are suddenly viewed as risky propositions. This after years of popularity. Indeed, ARMs are the reason many people were able to be come homeowners in the first place.

These mortgages continue to make sense for a lot of people. If you're thinking about buying or refi-ing, don't rule them out automatically. This Times article (courtesy of SFGate.com) give a measured evaluation of the benefits of this loan propduct.

Have Basis, Will Travel

A client of ours recently took advantage of Prop 60 to carry his old property tax basis over to his new home. In brief, we listed his house in Mill Valley in 2006. It sold for over $1,000,000. His tax basis, however, was calculated from when he bought the house for $150,000 in 1985. He wanted to buy a new condo and bring his old tax basis forward. With some nifty and nimble work, we were able to close on his new home within three weeks, exactly two years to the day after we closed on his old one. Two years is exactly how long homeowners over 55 years of age have before losing their Prop 60 exemption. The result? Our client will save over $10,000 a year in property taxes for as long as he owns his new condo. That makes retirement far more realistic for many.

Want to know more about Prop 60 or its sister law, Prop 90? There are permanent links on the right side of this page. Or just click here.

Silver Lining?

Let's face it. It's been ugly. While regular readers know that we're hardly afriad to post bad news in this space, it's our feeling that anyone who thinks they know where or when the current troubles will end is kidding themselves (and us). All we know for sure is that, as we've always said, the longterm outlook is the only one worth looking at. Investment. Not speculation.

Of course, a little good news is always welcome, even if it's in the form of not-so-bad news about our local economy.