Rent Control-No Pros, Only Cons

Another city in Los Angeles County is aiming to put rent control ordinances into effect and I wonder what is going through the minds of people to even consider them.  When an owner cannot rent his property for an amount that the market will bear, he may just be hesitant to improve his property or even simply maintain his property.  Therefore, before you know it, the area will become rundown and not a good place to live.  If the owner decides to sell the property, the price he will be able to get will be less than before rent control.  Rent control is theft, pure and simple.

 

FIRST HALF CLOSED SALES IN PALOS VERDES

According to the Multiple Listing Service, there were 347 closed sales of single family residences in the cities of the Palos Verdes Peninsula (Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, and Rolling Hills Estates) and the unincorporated area of Palos Verdes Peninsula during the first half of 2017.  The sales prices ranged from $640,000 to $13,840,000.  The average sales price was $1,761,487 after an average of 48 days on the market.

There were 91 closed sales of condominiums and townhouses.  The sales prices ranged from $240,000 to $1,310,000.  The average sales price was $678,865 after an average of 47 days on the market.

If You Want the Best Real Estate Financing…

If you are planning to purchase a new home or would like to refinance, contact Mike Giltner, Senior Loan Officer of Nations Mortgage.  I have known him for many years and he has arranged financing for my clients and for me, personally.  You will not be disappointed!

Mike Giltner | Senior Loan Officer

310-971-1856

 

A Brief Suggestion for Those Looking at Houses to Buy

When I show homes to potential buyers, I notice that I am always looking up toward the ceiling in the rooms. I often notice evidence of leaks. It dawned on me that when buyers are viewing homes, if they are couples, one should be looking up, as I do, but the other should be looking down. That way, any potential problems with the property should be detected.

Five Steps to Create the Kitchen of Your Dreams

When you decide to remodel your kitchen, follow these steps to design the space you have been dreaming about:

  1.  Create a budget:  It is important to determine how much you are willing to spend to achieve your ideal kitchen.    If you need basic upgrades or a complete remodel, setting your budget will help create a realistic plan from the start.
  2. Think about what you need and what you want:  Think about how you use the kitchen.  Do you do a lot of baking and need more counter space for rolling out confections?  Would you like to have a stone oven for your homemade pizza?  There is one area that everyone should update-the kitchen faucet.  Because it sees so much use on a daily basis, think about ways to make tasks easier, like installing a new pull down faucet.  No matter what the task, you will quickly notice the difference made by this simple update.  Beyond a new faucet, here are some of the most popular items for the kitchen:  A chef’s stove is a dream appliance.  Use soft, neutral colors in the kitchen.  Purchase stainless steel appliances.  A custom pantry is a popular kitchen storage item, followed by a utensil drawer.
  3. Research and plan:  Sources for ideas and inspiration are infinite, especially online.  Visit sites like Pinterest and Houzz that provide design concepts for your new kitchen.  Visit a kitchen showroom .  Magazine articles and features can also provide valuable how-to information.
  4. Determine your approach:  Will you hire a professional or do most of the work yourself?  Moving walls or doing electrical work is best left to licensed contractors and electricians.  You may be comfortable installing a new faucet or painting your new space, but remember that when you do-it-yourself, fixing one thing may lead to other jobs that need to be accomplished.
  5. Get to work:  With the perfect plan and a list of updates to incorporate, you will be able to create your new kitchen space.

Check Credit Before Buying a Home

What is a Credit Score? Imagine that a friend asks to borrow money from you.  Assuming you had the money to loan, you might then ask yourself, “Did he pay me back the last time he borrowed money?  Did he pay me back the full amount?  On time?”  When you approach banks and lenders for a loan, they go through a similar analysis, but since they do not know you personally, they use your credit history to determine whether you will be a responsible borrower.  Lenders learn about your credit history by looking at your credit report.

You can get a free Credit Report Card that includes your free credit score right now.  Credit reports are developed by three separate credit agencies. These agencies (Equifax, Experian, and TransUnion) gather information about your credit history, and, using a formula developed by Fair Isaac Corporation (FICO), each assigns you a credit score. You will end up with three slightly different credit scores, each from one of the three agencies. Lenders typically look at your middle credit score (as opposed to the highest or the lowest), and you must provide all three of your credit scores (one from Equifax, one from Experian, and one from TransUnion), when applying for a loan.

Why are Credit Scores so Important When Buying a Home? Your credit score helps determine the rate and conditions you receive on a loan.  If your credit score is high, meaning that your credit history indicates that you have paid your credit card bills on time, have not “maxed out” your credit cards, etc., then lenders believe it is a fairly good bet that you will not have difficulty paying off your loan. They will see you as a low-risk investment and offer you a low rate on your loan with good conditions.  If your score is lower, lenders will think you are a riskier investment, and charge you (by loaning you money at a higher interest rate, often including hidden charges) to take on the perceived risk.

How do Credit Scores Affect You When Applying for a Loan? Most lenders have a baseline credit score by which they largely make their decision to approve or deny mortgage applicants. The maximum credit score is 850 (though a score of 850 is rare, indeed. Only about 10% of applicants have a score over 800). Any score in the 700’s or above is excellent and will get you a loan with the lowest interest rate. When you get into the 600’s it starts getting dicey.  So you can see the importance of keeping a good score.  It used to be okay to miss a credit card payment deadline. You might pay a $15 late fee. But if you do this on a regular basis, it can savage your score and cost you many times that amount when you want to buy or refinance a home.  That is the bad news.  The good news is your credit score is not fixed in stone.  If you have bad credit scores, there are ways to improve your credit health.  If you find your scores are lower than you expected, you will need to engage in credit rehab.  From a financial standpoint, it is almost always better to take the time to improve your credit health, and make yourself eligible for a better interest rate, than it is to apply for a loan with a credit score that will only make you eligible for a subprime loan.

Find Out Where You Stand. You can check your credit score each month using Credit.com’s free Credit Report Card.  This completely free tool will break down your credit score into sections and give you a grade for each.  You will see, for example, how your payment history, debt and other factors affect your score, and you will get recommendations for steps you may want to consider to address problems. In addition, you will also find credit offers from lenders who may be willing to offer you credit.  Checking your own credit reports and scores does not affect your credit score in any way. 