Reasons Some Rent, Instead Of Own

Although it is generally, considered, to be the American Dream, owning a home, of their own, is not, for everyone! Although studies indicate, in the longer – run, it is more cost – effective, to be an owner, than renter, there are certain individuals, who, it is often, not for. With that in mind, this article will attempt to briefly, consider, identify, and discuss, some of the items, which might make someone, a less, than stellar, candidate, for home ownership.

1. Down – payment: There might be several reasons, certain individuals, lack the necessary down – payment, needed, to put down, in order to purchase a house. Some lack the necessary discipline, while others might not have the financial necessities, or have experienced major obstacles (economic/ financial, etc), which have made it challenging, to put together the funds. Others are afraid, to proceed, because they lack the self – confidence, etc, which makes them, ready, willing, and able, to handle the stress, etc.

2. Reserves: In addition to having the needed, up – front, funds, there are many other financial obligations. and preparations, needed and necessary! Wise individuals put together, at least 6 to 9 months, equivalence, in case of any interruption in earnings, etc. In addition, there should be separate reserves, for initial changes, or modifications, most new homeowners, perform. Then, money should be put aside, for regular repairs, upgrades, modifications, renovations, and unforeseen issues.

3. How much do you want it?: Are you prepared for home ownership? When you rent, your landlord is responsible for necessary repairs and maintenance, but when you own, you not only have to pay for it, but be responsible for either, performing the task (if you are capable) yourself, or bringing in a professional, to take care of it. This includes: electricians; plumbers; painters; concrete workers/ masons, etc.

4. Confidence: Do you have the necessary degree of self – confidence, to trust yourself, and your abilities, to handle the stresses and tensions, involved, in owning, a home, of your own? If the stresses and tensions, are things, you don’t want to get involved in, and/ or, handle, then, owning a house, may not be, for you.

While I personally, enjoy owning my own home, it is not for everyone. One should seek, to better, know, what makes him happiest, most satisfied, and serves his personal self – interest, etc.

The Perfect Disaster

Why trying to be perfect is a great way to fail – and how to avoid it.

The best is the enemy of success! What I mean by this is so many of us are so focused on the best that we take very little action towards our success. We are focused on the best place to eat, the best time to work out, the best way to lose weight, or the best way to make some extra money. We are focused so much on the best that we think too much about what we should or could be doing.

Focusing on a process toward success will prevent failure and accelerate your results. Take Travis in our office for example. He loves the gym and wants to get bigger and stronger. He can focus on the perfect diet, the best supplements, the best workouts, and the best technique. Or, he can eat healthy and get under the bar. The reps give him experience and strength. The results provide the momentum, and he finds himself spending more time in the gym and focusing more on diet and supplements. Now he has trouble fitting into his shirts. It all started with reps.

Dating is another good example. Typically, we need to kiss a few frogs to find our prince or princess. It does not come easy, but as we work through it, we start to learn what a good match looks like. We should start to get more confidence and our decisions become faster and better. Eventually, we hope, we find someone we are compatible with and live happily ever after.

Business or investing is no different. Obviously, we want to strive for quality, but quality will come with some thought-out quantity. Takes sales for example. If we just pick up the phone and start making calls, we will get better and better on the phone and will start closing more deals. The practice on the phone will produce better results than spending time finding the best phone script or the best people to call. With investing, we start taking steps to our goals. Maybe that is interviewing agents or sending out mail to motivated sellers. As we see results, we can adjust and improve. The fact that we are taking action, organically gets us closer to perfection.

So how do we avoid the perfection trap?

Goals are so incredibly powerful. A goal should be a tremendous help, but it can also hurt you. For new investors I love the idea of setting action-oriented goals. What I mean by this is to not focus on results, at least to start, and only focus on the small actions that should lead to results. As you hit your goals, you gain confidence and momentum. Let me give you an example. If you want to make $30,000 a month, you might start with how many deals you need to do to hit that goal. If you are a fix and flipper, it might be one deal. Then focus on how many offers you need to make to get one deal. Because we are in a tough market, we know that it might be 60 or more. Obviously, this is a bit of a guess until you can track it, but let’s start with 60 for this example. A great goal to help get you started would be to make 60 offers this month based on your buying criteria. The criteria being deals that should net $30,000. Focus on the fact that the goal is the number of offers, not the number of deals or the amount of money you want to make. That way, even if you don’t get a deal, you can, and should, celebrate the fact that you accomplished your goal. If you consistently hit action-oriented goals, you will see tremendous results.

I recently read a story about a college art professor that split his class in half at the beginning of the year to do a study on actions and results. One group was the quality group and one was the quantity group. The quantity group would be graded on the number of photographs turned in by the student. The quality group, as you can probably guess, was graded on only one photo for its quality. Guess which group turned in the best photos? The quantity group had more high-quality photos turned in because they were out practicing their skills trying to hit a quantity goal. Because they were not trying to take the one perfect photo, they ended up taking more action and better photos.

Disney in another great example. In the 80s the company had 3 CEOs and was not profitable. Then CEO, Michael Eisner, changed the way the company thought about the movie business. Instead of producing perfect movies, they went for quantity. In the late 80s and through the 90s they more than doubled the number of movies they were producing. They spent less time, money and energy on any one movie. The result? Blockbuster smash hits like; Beauty and the Beast, Aladdin, and Lion King.

Overturned Mortgage Rulings Creates Chaos at the Supreme Court and Bank Stock Falls

This week has seen unprecedented Supreme Court action that has unleashed all kinds of mayhem on an internal level, not to mention the consequences this has had on the financial sector. Over the past few years we have seen thousands of court cases revolving around the financial sector and their methods when it comes to granting mortgages. The primary issue was in relation to the infamous Floor Clause inserted in mortgage agreements (in many cases without advising the mortgage holder!) but a Supreme Court ruling in favour of mortgage holders obligated banks to reimburse any benefits obtained which could be a few thousand euros per case. The secondary issue and the one this article refers to has to do with reclaiming the Stamp Duty paid on the Mortgage Deed.

In February of this year, the Supreme Court by means of its Civil Court issued a ruling that stated the mortgage holder is responsible for payment of the corresponding Stamp Duty, however, this same ruling was OVERTURNED by its own Court for Contentious-Administrative Proceedings in an unprecedented action last Tuesday 16th October 2018 and recorded under Ruling Number 1505/2018. This ruling corrects the existing ruling that was passed only a few months ago and determines that in fact the BANK and not the client/mortgage holder is responsible for payment of any Stamp Duty due when a Mortgage Deed is granted before a Notary Public. How has this come about and what was the reasoning given for this surprising turn of events?

Mrs Lourdes Amasio Díaz, a barrister who represents the company known as “Empresa Municipal de la Vivienda de Rivas Vaciamadrid S.A.” initiated an appeal to reverse a ruling against her client as recorded under Recurso de Casación 5350/2017 and this is what was considered at the Court for Contentious-Administrative Proceedings. As stated previously, this appeal made Magistrate Jesús Cudero reconsider the Supreme Courts previous ruling and side with her client. The criteria used to arrive at this decision was the fact the only interested party in registering a mortgage loan at the Land Registry Office is the bank because it is the only way they can make claims against the mortgage holder in the event of non-repayment of the loan, therefore the bank should be liable for the resulting tax.

This about-turn can seem conflictive but as it turns out when the matter was apparently resolved in February 2018 at Civil Court, the same issue was already on the table at the Court for Contentious-Administrative Proceedings which now does not hold the same point of view.

The result of last Tuesday’s ruling is a massive dip in the stock market which has affected Spain’s major banks, primarily, Bankia, Bankinter, BBVA, CaixaBank and Banco de Sabadell. The one major factor that has not been detailed in the ruling is whether the Stamp Duty for mortgages signed over the past four years can be reclaimed or whether it only applies to new mortgages. Of course, the banks interpret the ruling to apply only to new mortgages, so this point must be clarified.

It would appear the Spanish banks’ reign of tyranny is over and they are being made accountable for their one-sided dealings with their own clients, however, this ruling has stirred up a hornet’s nest and it is far from over… Not even 24 hours after this latest ruling was passed, the Supreme Court has made yet another astonishing decision to review this sentence. Mr Luis María Díez-Picazo, President of the Court for Contentious-Administrative Proceedings has decided it would be prudent to delay this ruling until other considerations can be examined. By this he is referring to the effect this has had on the stock market and what it would mean if the banks have to reimburse what experts estimate between 6.000 and 24.000 million euros.

A Plenary Session of the Court must be held within the next few weeks in which 31 magistrates must decide whether the latest ruling that determines the banks are responsible for any Stamp Duty that arises from mortgage deeds will be accepted or not. What is going to happen in the meantime? Well, in theory, a legal ruling was passed so notaries will continue to advise that according to the ruling of the 16th October 2018 and applicable from Thursday 18th October 2018, it corresponds the banks to pay the tax. The shock attempt on Friday to reverse that sentence is a mere Memo but does not qualify as legislation until such a time the plenary session decides which ruling stands.

Some clients who were due to sign for mortgage loans at Notary that Tuesday postponed their appointments until the outcome of the court case was known but even though the ruling is now debatable, Stamp Duty in the Canary Islands for example is payable within 30 days of signing the deed (in other autonomous regions the deadline is 60 days) so I expect the banks will until the last moment before paying in case they can pass that expense back to the mortgage holder.

What we have here is a split decision within the Supreme Court itself with two very different rulings issued by two different chambers. My personal opinion? A matter of this magnitude should have been determined at a Plenary Session in the first place instead of allowing two chambers to pass a sentence on different cases which has allowed this gross conflict to occur. We’ll have to see what the outcome of the Session is and hopefully it will be in favour of the little guy to help put an end to what I call the Banks’ Reign of Tyranny.

Transaction of Property Through a Real Estate Company

When it comes to transaction of property, even the wisest, boldest, smartest and the ‘know it all’ becomes nervous. After all you wish to make either a great investment or a profitable sale. Property matters are always stressing. Yes, they do cost your peace of mind. The process of selling and buying of property is complex as well as tiring. There are subtle fears and doubts’ regarding everything till the deal is not done. When selling a property your ultimate goal is to complete the sale at a profitable price and hand over your property in the right hands. When buying a property you aim to get a property which satisfies your needs at an affordable and right price. But how to do that?

The long and tiring process

Lets us first talk about how to sell your property yourself. The first obvious step is to know the market value of your property and then set a price which is convenient to you. The next move is to get a buyer. But, how? Put hoardings, pamphlets and banners to advertise your property and tell people it is for sale. Inform your acquaintances that you wish to sell your property as they might get you buyers in their contact. Buyers will approach you when they get to know that your property is for sale. They will check your property and if they are impressed by your offer they will buy your land/ house. Then comes the paperwork which concludes the deal. When buying a home, you need to collect info about properties for sale either from advertisement on different platforms or from friends and family. Visit the property and check it in the next step. Then comes the negotiation for price with the seller and the purchase concludes with paperwork.

Why you need an agent?

Well! All this might sound easy, but it is not buyers have to wait for the type of property they want for long. Sellers too have to wait as long as 6 months on average to find the right customer. Even the legal work required in papers makes it mandatory for you to visit Law attorneys dealing with property matters, making the process all the more cumbersome. It is exactly here real estate companies and agents come to your aid.

Perks of contacting a Real Estate Company

Many a times you need to buy/ sell homes in a hurry. Like if you have got transferred to a new place you would like to sell your previous home quickly and buy a new one as soon as possible. As already mentioned the process of transaction of property is complex and time taking. But this tiring burden can be reduced to a great extent when you contact and associate with a real estate company or agent. They have all information about which house is for sale at what price and who are people looking for a house in what location and at what price. So you see the first work of finding and waiting for customers when you wish to sell your property is eliminated. When looking to purchase a house you don’t need to hunt anymore. Your property agent will let you know. Not only they end the hunt, but also assist you with legal paperwork relating to the deal.

Evolution of Green Real Estate Properties

The ideologies of the buyers in the real estate industry have been drastically changed over the years. All they need is eco-friendly or environmental properties with required facilities. Some of the environment friendly features are:

Use of renewable energy sources
The current trend in the market is demand for eco-friendly properties. Use of solar energy in water heating appliances, air conditioners and inverters can attract many buyers. This kind of energy sources can reduce their E-bills.

Rainwater collectors
Rainwater harvesting is effective way of storing rainwater for domestic usage. By using this method in our home, a large scale of water scarcity can be reduced.

Use of wooden furniture’s
Consumers are considering organic materials like wood and bamboo to be used in interior furniture. Plywood made from wood chips and window treatment, which include bamboo shades are some of the organic designs evolving in the green properties. Wooden furniture can add warmth, richness, comfort and finesse to the household area.

Natural landscaping
It is one of the important factors for the green real estate property. Properties, which have native plants and trees growing in and around the surroundings, have much demand among the consumers. A property, which has artificial grass lawns, requires lot of water to be supplied whereas native plants and trees require only seasonal rainfall to grow. Plenty of water can be saved by having natural growing trees and plants.

Eco-friendly interior insulations
Interior insulation in home is necessary as it affects the room temperature. Use of eco-friendly insulations with wooden chips, cotton, small broken pieces of stones and rocks, newspapers, cellulose insulation can reduce the noise and green house gas emission. Natural insulations have a low embodied energy and are fully disposable/recyclable at the end of their life.

Due to the increased demand in green real estate, many firms have started to promote their properties as eco-friendly homes. Buyers are showing more interest in having energy efficient products and systems in properties. Many financial institutions and private sector firms are investing huge money in green real estate predicting its demand in the future. According to government policies, investors who are investing in this sector pay fewer taxes compared to commercial sector investing. Green building construction has become increasingly popular and construction of such buildings has been a great challenge in long run. A green building is setting up new avenues in sector and increases the talent among the architects, environmentalists and suppliers.

Garden Apartments

This residential apartment is located on landscaped property that is at ground level. This term loosely describes any apartment on the first floor. It also includes a basement apartment or one in a high rise. If it is a real garden apartment, there will be no household, or apartment, above it. They are spread out horizontally in an open courtyard. You can find these apartments worldwide.

Such an apartment will have one or two bedrooms but you can find some that have three or more bedrooms, especially if they are used as a vacation apartment. The more bedrooms there are the more people they can accommodate when on vacation and renting the apartment. If it is an apartment that is rented out long term it is generally not furnished. If the apartment is rented out on a weekly or monthly basis for vacations, it will be furnished. Garden apartments may also have one or two stories. The common area can include outdoor amenities like a swimming pool, tennis or basketball courts, a spa or clubhouse. The entrance to the apartment could be off the courtyard or the street.

The owners of the garden apartments are responsible for the outdoor area being kept up with the lawn mowed, any outdoor equipment cleaned, clean swimming pool without leaves and other debris, etc. Many owners will plant the area with well cared for trees and floors. If it is an apartment complex and you have a pet you need to find out if there is a special area for the dogs. Make sure that you clean up after your dog once it has finished its business. Your garden apartment may have a small yard or patio. If your garden apartment has either of these two amenities, it would be a good place to have friends and family over for a barbeque.

Each garden apartment is a separate household unit but all of the tenants share any amenities, such as a swimming pool or exercise room and the main outside grounds. The apartments have their own controls for the heat and air conditioning and bathroom and kitchen facilities. In some places, it may be called a walk-up garden apartment because it has an outdoor staircase. With garden apartment complexes that offer premium services like a weight and exercise room or sauna may be charged an extra monthly fee to help with the upkeep and have a key to let them into these facilities. By having a key, it prevents those that choose not to pay the extra fee from using these premium facilities. Some may even have a laundry room for the residents. The rent for a garden apartment would be much the same as a regular apartment but it depends on the location and amenities.

Green Homes for Sale

If you were looking at real estate ads and saw one that stated “green homes for sale”, you may at first wonder why anyone would a listing stating the color of their home. This is not what this type of ad means. It is just stating that the homes for sale are earth friendly and energy efficient. Green homes for sale are being built in an effort to less the carbon footprints we leave behind.

When you purchase a green home they will contains all or some of the following features that are earth friendly.

• Fiber cement siding
• Alternative power system like wind and solar
• Recycled building insulation
• No VOC stains and paints, which stands for volatile organic compound. It is any compound that is carbon-based and will vaporize at standard room temperatures. Some of the more prevalent ones are formaldehyde, acetone, and methane.
• Solar powered hot water heating

Even if you do not live in a green home, there are things that you can do to increase your energy conservation. It will even help contribute to saving our environment. Making your home a green home can help to reduce global warning and save the homeowner money. It will significantly better the environment and require little effort for the homeowner.

Making a green home

• Instead of using the standard incandescent light bulbs start to use compact fluorescent light bulbs (CFLs). When you switch to the CFL’s you can save per year over a hundred dollars. You can find these lights in the same aisle as your regular bulbs but they are little more expensive. In the United States, if every house switches the type of light bulbs they were using to CFL’s there would be a reduction in greenhouse gas emissions of one trillion pounds.
• Install a thermostat that is programmable-with this type of thermostat the homeowner can program the thermostat so that the air conditioner or heater is off when homeowners are not at home. The programmable thermostat can be programmed so that it will cool or heat your home shortly before the homeowner arrives home. This change could save the homeowner ten percent or more on cooling and heating costs
• Plug air leaks-this will help the homeowner save money and practice conservation. You can do this by installing weather stripping, keep the temperature in your home from rapidly fluctuating, and caulk windows correctly to stop air drafts.
• Energy Star® rated appliances-these reduce the amount of electricity that is needed to operate them so they have less of an impact on the environment. They will also save on your energy bill.

Owning a Classic Craftsman Home in Northeast Los Angeles

NELA home architectural styles vary widely: Modern, Art Deco, Victorian, Tudors, and others. But perhaps the Craftsman residences get the most attention.

Craftsman homes are among the most sought after real estate in Northeast Los Angeles neighborhoods. One of the many reasons why homes for sale in Pasadena, Eagle Rock, Hermon and elsewhere have become hot commodities is a renewed interest in so-called “character homes”. But Craftsman homes come in significant variations, sizes, and conditions – opening up opportunities for homebuyers in a range of prices.

The high value – i.e., prices ranging from $400,000 on past $2 million – being placed on Craftsman homes in NELA is an interesting turn of historical events. These solid structures were originally designed for the advent of middle class home ownership in the late 19th and early 20th century. Gone were the features of Victorian homes that included butler’s quarters and kitchens only used by household staff. Instead, the family prepared their own meals while some features of kitchens blended with dining rooms – which are why there are those built-in, glass-front cabinets for dishware that was previously stowed out of sight from formal dining rooms.

The characteristics of Craftsman homes range from low-pitched roofs to deep eaves, exposed rafters (usually with distinctive decorative knee braces), dormers, one- to one-and-a-half stories, large fireplaces (often flanked by built-in cabinetry), and double-hung windows. Outside, Craftsman bungalows had large porches that welcomed newcomers to the California lifestyle, which offered a longer outdoor season for people arriving from the Northeast and Midwest.

Note that Bungalow and Craftsman style homes are often – but not always- the same thing; Bungalows always have that front porch (“veranda” if you prefer), while Craftsman sometimes do not. (If looking at homes for sale in Glassell Park, Garvanza or Mt. Washington, you might nerd out with your realtor by looking for the distinction.)

A further distinction might be made between Craftsman homes designed by certain architects (Greene & Greene built the trend-setting larger versions, which drew from Spanish mission and Japanese aesthetics), while Craftsman-style homes had a lower cost and were more modest in proportions and features. Craftsman-style homes may have shipped by train in a kit (e.g., “Sears homes”) or been a much-replicated design used by 1920s developers who knew a popular style when they saw one.

What made Craftsmans so popular when first built is what makes them equally popular today. These solid buildings have a relaxed style, one that accommodates an easy flow between rooms and activities. Mothers and fathers making meals in the kitchen can take a break to help children with their homework while keeping an eye on something cooking on the stove. Throw a party on the veranda but some guests might easily drift inside to admire the Arts & Crafts detailing of the cabinetry, fireplace surround, or wainscoting. They are healthy, unpretentious and sturdy: anything standing today has withstood a century of seismic activity, testimony to the sturdy craftsmanship of these Craftsman homes.

Tips for Getting New Clients As a Realtor

Admit it or not, finding clients on the vast real estate market is very challenging. It is challenged by the existence of big real estate firms which employ hundreds of experienced real estate agents on their teams. If you are a newbie, you could easily be swallowed by the efforts exerted by the established firms. But have you ever think that they also started out as rookies in the field? If you are in this situation, here are some tips to at least give you a leverage on finding the right clients for you.

Create your own circle of offline connections and influences. As much as the online world is essential to widen your connections, the offline connections and influences is equally essential. Start with your family and friends. Then add your past classmates even those from your elementary days whom you still remember. Your teachers can be great additions. Move on to those whom you are tapping services as professionals such as your doctors, dentists, hair stylists, pet groomers and fitness coaches. The parents of your children’s classmates and friends can also expand your offline connections. If you have business contacts, add them as well. Don’t forget your neighbors. They can be great sources of referrals.

Build a better online network of friends. Through social media, you, as a real estate agent is bestowed greater power to enhance online connections. Your network can be a greater web of interconnected persons starting with your family members down to their own friends, acquaintances, friend of friends, and so on. Before you notice it, your network has expanded to include professionals of diverse titles not only in your locality but also in adjacent towns and nearby cities. If you think they are not relevant, you may be wrong with the impression. Anyone in your online network of friends can always be a great source of referral even those who you seldom see to be adding activities in their social media accounts.

Send mailers, both online and offline. Now that you have established both your online and offline connections, it is time to introduce yourself as the rookie real estate agent. For offline mailers, be sure to have a formal tone. Give your full name, license number, the firm you are connected too, its address, and contact numbers of you and the firm. Inform them of the services you are offering.

For online mailers, the same can be followed. But since it is an electronic form, you may want to add some enhanced graphics and video.

Create your own website. For personal branding, having an own website is an essential. This is where you can provide listings, value added services, frequently asked questions, and even informational articles that can help spark the interest of your potential clients. Support it with a blog, and connect it with your social media accounts in different real estate online platforms.

FINANCIAL DEFENSE The True Path to Wealth

“Congratulations! You play fantastic offense” This was said sarcastically by Thomas J Stanley in his famous book, The Millionaire Next Door. I have not read or listened to this book in more than eight years, but I still remember this phrase. That one, and the millionaire saying, “I drink two types or beer. Budweiser and Free.”

The message in his book is that you need to watch your spending with more tenacity than to increase your income. Obviously, it is a combination of income and spending that creates wealth, but controlled spending is far more important. As long as you spend less than your income, you will be moving forward, and consistent progress will make you rich! The problem I often see is that people spend what they make, or worse, spend more than they make. In either of these scenarios, you are at best staying even, but most likely going backwards. Many want to be investors and entrepreneurs, drink the get rich Kool-Aid and focus all their energy on increasing income. That is what sells coaching programs, mentor-ships and advertising on TV shows. With energy and focus comes success, so many of these entrepreneurs and investors see results. And with the positive results of higher earnings comes… higher spending!

I am fortunate enough to live in a great neighborhood. Most people in the neighborhood are high income earners, but several of them live above their means. It is not uncommon for me to see neighbors move out of the area because they can no longer afford to stay. They are the same ones with the new cars and the extravagant parties. It is a look at me attitude and peers feed on the pressure to keep up. This creates a little spiral of friends living outside their means. But hey, at least they are all moving backwards together.

The ones that live below their means feel pressure to spend or get left behind. And on the surface, many of them do. One challenge about living below your means is it takes years before you realize the benefit. During those years it seems as though you are missing out. I see it so clearly and understand the pressure, but I also see a high percentage of our aging population that should be retired, working their asses off. They are stressed and busy and churning to get by.

If you have not yet, you owe it to yourself to read The Millionaire Next Door. This book really sank in for me on the power of financial defense. Of limiting spending and protecting your earnings. I am able to live in my neighborhood, provide for my family, enjoy my time away from the office, and many other benefits because of the control I had with spending as my income was increasing. As you invest earnings for income, instead of spending it, you will witness exponential growth of income.

If I recall correctly, the quote from the book “Congratulations! You play fantastic offense” was referring to a broke high earner. He made more than his peers but would miss a mortgage payment if his income stopped. That is not a comfortable life, yet he was proud of it. If I could help one piece of financial advice sink in, it would be to focus on defense before offense.

Travis and I both recently read the book, Set for Life, by Scott Trench. This is another fantastic book focusing on the correct way to build wealth and retire early. It is a simple formula. Spend less than you make and invest the difference.