Thursday, April 2, 2009
Thursday, March 26, 2009
Welcome Video!
The Duggan Group welcomes you and would like to give you a quick video tour of our complete array of services. Click the link above to view our video...
https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4120
Monday, March 16, 2009
The News is Bad...for a Reason
Quick….which is the more exciting scenario?
A man walks slowly down a flight of stairs, sometimes pausing or retracing his steps until he reaches a floor. After trudging along for awhile, he notices another staircase and begins ascending, occasionally pausing or taking a step back before methodically proceeding upward.
A second man hurtles down a terrifically high flight of stairs. Ignoring the safety railings, he runs recklessly downward, dodging obstacles in his path as he goes. He suddenly cries out as he loses his footing, sails through the air, tumbles down several flights of stairs in a spectacular crash. The badly injured man is bandaged from head to toe and attached to a variety of beeping, flashing medical devices that monitor his vital signs. Experts debate his condition but agree that the situation is dire and prospects for recovery are uncertain.
…and that’s why more headlines say “Home values off the cliff in Phoenix, Miami and Las Vegas” than “Things aren’t bad in Seattle, Portland and San Francisco.” Most readers just find sensational headlines more interesting. And while they may help sell newspapers, they also scare buyers and sellers to the sidelines, though the news may be very positive for home buyers in particular.
Monday, March 2, 2009
Market Timing is Far From Perfect!
No one wants to purchase a home only to see its value decline. But should you wait to buy a home until prices bottom out? A quick web search will yield a number of articles and opinions for and against timing the real estate market, but beware of those in favor of market timing who also want to sell you a how-to book or system.
Many people who have tried to time the market miss out on the chance to build equity by waiting to buy until prices rise again. The problem? Market cycles only become clear in retrospect. In the midst of a market slowdown, it’s very difficult to predict when housing prices hit their low points. What is the best way to protect against buying at the wrong time? Sell at the right time. In many cases you can’t control when to sell, but you should plan on keeping your home at least six or seven years.
The longer you own your home, the better chance you have of building wealth and protecting yourself from the market’s ups and downs.
Monday, February 23, 2009
Long Term Owning Usually Beats Renting
Typically, a weak housing market corresponds with a strong rental market. If the rental market is strong in your area, it may indicate weakness in the local housing market, which typically favors Buyers over Sellers.
When you buy a home with a fixed-rate mortgage, you can lock in a predictable monthly payment for 15 or 30 years. That means the largest part of your housing costs, principle and interest, are fixed. For some people, that stability, along with the sense of community that comes from being a homeowner, is enough to tip the scales toward home ownership.
If the monthly cost of buying vs. renting is comparable, you may consider some related factors to help you decide. Use the mortgage calculator under the “Finance Tab” on our website to find out which sales price is equal to what you are currently paying in rent. For example, if you are paying $2600-$2700 in rent per month that is equivalent to the principle and interest payment on a $500,000 Loan (5% 30-year fixed rate). Getting pre-approved for the loan is Step One. Your interest rate may be higher or lower depending on the amount you put down and your credit score. Email or call us and we will connect you with our preferred lenders.
When you rent, your landlord receives any appreciation and tax breaks associated with owning the property. If you plan on any significant remodeling, buying may be also preferable to renting. We are here to help you decide which is best for you!
Monday, February 16, 2009
Uncle Sam wants you...to be a HOMEOWNER!
Wouldn’t it be great if the government kicked in some money to help make home ownership more affordable? Because of deductions on mortgage interest, property taxes and now the $7500 tax credit for first time home buyers, the practical effect is that the government is subsidizing your home purchase. In fact, home ownership provides three of the best ways to reduce your tax bill.
1) Mortage Interest you pay can be deducted from you gross income to reduce your taxable income. For example, say you take out a $300,000 mortgage loan at 6% interest. You pay $18,000 a year in interest on that loan. That means your taxable income for the year is reduced by $18,000. If you’re in the 25 percent tax bracket that means a one-year tax savings of $4,500 (25 percent of $18,000)
2) Property taxes may also be deducted from your gross income, lowering your overall annual tax obligation. Property taxes are levied on homeowners in the
3) New $7500 Tax Credit for First-Time Home Buyers. This credit may be going up to as much as $15,000 in the new stimulus package.
Several of our clients have called us this year to THANK US for their larger than normal tax refund. They had no idea how advantageous owning a home could be from a tax perspective, in addition to the many other benefits of home ownership.
Wednesday, February 4, 2009
Response to Client question re: Market in the California Bay Area
Here is my response to an investor’s question regarding market activity and pricing in the California Bay Area. I received this buyers question via my Plaxo (social networking) site. It will give you a general idea of the Bay Area market. As I mention below, Real estate is a local regional market. If you have questions on a specific city or neighborhood, please let us know.
It depends which market you are looking in to invest. Trends and data are different in each local/regional area. In the areas hit hardest with REO's (foreclosures) we are seeing sales volume increase. The prices in these areas have gone down 20, 30 and 40% from their '05 highs. There are now multiple offers and some go over asking. Prices are low...range from about $150K-$400K avg for a newer single-family home. Rents are stable. In the areas with good job infrastructure we have seen prices roll back about 5%-15%. There are some REO's (foreclosures) but not a lot. Houses tend to sit on the market for 3 months or more--it depends on how they are priced. The good priced homes go faster. Investors are out in the market now. There are 2 large funds purchasing $20MM-$50MM in housing inventory in
