VB Realty Group Presents: Home Buyer Master Class
Learn the top 5 things you should know to become a homebuyer in 2023!
If you would like to view the slides used in this presentation, Click the link below:
https://drive.google.com/drive/folder...
If you have questions or would like more information please send your request to Offersvbrealty@gmail.com or call Brenda at (562)881.9416 and we will be happy to help!
Cyber crime has been on the rise since the internet became available to the public.. Every day criminals are looking for the easiest targets. Think you’re not who criminals would be interested in? Think again!
Cyber criminals don’t need to know how much money you have in the bank, how big your house is, or what valuables you have on display. They want into your email, your financial data, and ultimately, your identity. They cast a wide net in the hopes to get anyone and they are counting on you thinking you are safe.
With the introduction of AI and ChatGPT, their scams have only gotten more realistic and easier to fall for.
So what can you do to stay safe? Here are a few tips.
1) Turn on Multifactor Authentication
2) Update your software
3) Think before you click on unknown links
4) Use strong passwords
Want more information? Visit click here to visit cisa.gov for more tips.
For secure password management, you can visit 1password.com or bitwarden.com.
As we reach the end of the spooky Halloween season, we thought it would be a fun send off to discuss a haunted house. The infamous Los Feliz Murder House in LA has a checkered past, but to real eatstae agent Nancy Sanborn, it was just a house.
In 2016, Sanborn was brought on to the selling team to what she thought was just a regular referral listing. She was completely oblivious to its history, one of the few who was. For context, the property was the scene of a gruesome crime about 60 years before, in which Dr. Harold N. Perelson killed his wife and hit his daughter with a hammer, and then took his own life. The haunted legend of this crime has spanned from 1959 to the present day.
The property has been a notorious haunted attraction for tourists and paranormal enthusiasts. Sanborn did her best to treat it as an ordinary listing, however, the residence attracted strange attention and visitors with a sole interest in the paranormal aspect of the home.
Most states require any material defects about a residence to be disclosed to potential buyers in case it has any lingering effects for them. Though many buyers are apprehensive towards the idea of buying a house with a reputation, purchasing a stigmatized house has the benefit of a price reduction, and according to a recent survey, ⅓ of homebuyers would be willing to purchase a house with a haunting reputation.
The Los Feliz Mansion closed in July 2016 for $2.3 million. Don’t let rumors ruin your chance at buying your dream home! We hope you have a very Happy Halloween!
To read the full article, click the link below.
https://magazine.realtor/daily-news/2020/10/30/how-an-la-agent-sold-a-haunted-house
In 2022, the California State Legislature approved 1,166 bills, and Governor Newsom signed 997 of them into law and vetoed the rest. Two dozen of these bills relate to real estate and were either implemented as part of the fiscal year 2022-2023 budget, which began on July 1, 2022, or that are effective on January 1 or July 1, 2023.
Senate Constitutional Amendment (SCA) 2 was enrolled under Chapter 182, Statutes of 2022, as a qualified ballot measure slated for a statewide vote on March 5, 2024 and would repeal Article 34 of the California Constitution. Enacted by voters in 1950, Article 34 requires that any development comprised of “low-rent” dwellings, financed in whole or part by federal, state, or local government, be approved by a vote of the people in the jurisdiction where the project is located. As California is now the only state that has this law in place, the California Association of REALTORS® (C.A.R.) was a sponsor of SCA 2 in order to repeal Article 34 in its entirety.
C.A.R. also sponsored several other housing bills signed into law, including AB 2170 that creates a state equivalent of the Federal Housing Finance Agency’s (FHA) “First Look Program”, which gives priority to purchasers of foreclosed properties who are prospective owner-occupants, nonprofits, or public entities, and that also prohibits bundled sales of such residential one to four properties.
As part of the state budget, homeownership has also been prioritized through $500 million allocated to the California Housing Finance Agency’s (CHA) California Dream for All Program, a new equity sharing down payment assistance program or shared-appreciation loans to help low- and moderate-income first-time buyers achieve homeownership. In addition, $50 million in funds have been allocated to assist homeowners with low-cost ADU constructions.
Effective July 1, 2023, and to sunset on January 1, 2033, SB 6 enacts the Middle-Class Housing Act of 2022, which deems a housing development project an allowable use on a parcel that is within a zone where office, retail, or parking are a principally permitted use. Similarly, AB 2011 enacts the “Affordable Housing and High Road Jobs Act of 2022” for the purposes of constructing 100% affordable housing projects in commercial zones
ASSEMBLY BILLS
AB 916
Zoning: Bedroom Addition
AB 1410
Common Interest Developments
AB 2011
Affordable Housing and High Road Jobs Act of 2022
AB 2097 Residential, Commercial or Other Development Types: Parking Requirements
AB 2170 Residential Real Property: Foreclosure Sales
AB 2221 Accessory Dwelling Units
AB 2245 Partition of Real Property
AB 2503 Landlords and Tenants: California Law Revision
Commission: Study
AB 2559 Reusable Tenant Screening Reports
AB 2745 Real Estate Broker’s License
AB 2917 Disability Access: Internet Websites, Parking Lots,
and Exterior Paths of Travel
AB 2960
Committee on Judiciary: Judiciary Omnibus:
Real Estate Disclosures
Senate Bills
SB 6
Local Planning: Housing: Commercial Zones
SB197
Committee on Budget and Fiscal Review:
Housing – California Dream for All
SB 851
Personal Income Tax: Small Business Relief Act:
Elective Tax
SB 869
Housing: Mobilehome Parks: Recreational Vehicle
Parks: Manager Training
SB 897
SB 989
Junior Accessory Dwelling Units
Property Taxation: Taxable Value Transfers:
Disclosure and Deferment
SB 1017
Leases: Termination of Tenancy: Abuse or
Violence
SB 1076 Lead-Based Paint
SB 1157 Urban Water Use Objectives
SB 1348
Escrow Agents: Controlled Substances
SB 1477
Enforcement of Judgments: Wage Garnishment
SB 1495
Committee on Business, Professions and Economic Development: Professions and
Vocations – Implicit Bias Training
Home insurance is an important part of owning a home and protects one of your largest financial investments. Whether you are interested in purchasing, reviewing, or replacing you’re current policy, it’s important to compare the options available to you.
The California Department of Insurance (CDI) is a great resource and provides guides, tips, and tools to help you understand your home insurance so you can make the best, and most informed decision for you.
You can visit the CDI website here. If you need additional help, feel free to reach out to your favorite VB Realty Group agent! We’re here for you for any stage of life and will help get you to where you want to go!
If you turn a profit by selling your home, the first $250,000 of that profit will be excluded from your taxable income. (That’s per owner. So for a co-owning couple the first $500K would be excluded). Yay! But what about if you rented it out for a while before selling? If you lived in the house for two out of the five years before the sale, the exclusion will still stand. Any profit above that exclusion will be taxed at capital gains rate.
(Renting property triggers other tax rules, though, so you may want to consult a tax professional.)
A large profit could affect you in ways other than taxation, though. For example if you are a Medicare recipient, your premium might temporarily go up if your profit exceeds the exclusion amount. This is because individuals who earn more than $87K per year (or married couples who earn more than $174K) are subject to an income-related “monthly adjustment”. So again, it’s best to seek out a tax professional: He or she might be able to structure the sale to lessen the impact on your income in that year.
For more information, read Liz Weston’s complete article:
Position yourself as a strong contender that can move when the moment is right with these proven tactics
Are you ready to buy in this crazy hot market? Here are ways to make yourself a more competitive buyer in a seller’s market.
With so many buyers on the hunt, it is important to keep an open mind when searching the market. It is important to set your expectations that the top end of the search price range should be significantly under the top end of the budget. Making sure you are open to touring unexpected neighborhoods, it is worth it to explore adjacent areas with less interest.
A key in this market is getting pre-underwritten. it is worth the substantial; legwork compared to pre-approval but in the end, you will need to do the legwork to finalize your loan. This will provide you confidence in your budget in turn providing the seller more confidence that your funding will come through. With today’s lower mortgage interest rates, their month-to-month mortgage payment even with PMI factored in may be very reasonable.
Making it easy for the seller will go a long way, it is more important to send a string email summary with your offer and follow up consistently. Always start with your strongest offer, instead of testing the bottom where the seller won’t even consider countering, they will just move on.
Being ready to offer quickly is also key to winning in a competitive market, and considering these tips before you find the home you want to buy will help you feel ready to jump when the moment arrives.
To read more about ways to be a competitive homebuyer in this intense market, read the following article by Inman Content Studio. https://www.inman.com/2021/05/24/6-tips-to-help-your-homebuyers-in-a-sellers-market/
Do you understand whether or not your retirement savings will ever get taxed, or when that happens? What exactly are mandatory withdrawals, and when do they start? How to best leave retirement savings to your heirs? If your grasp is fuzzy on any of these questions, then read on:
TAXES: Unless your tax-sheltered retirement savings account is a ROTH type, then any money that you withdraw from it definitely will be taxed. The government set this deal up for you (and it is a good deal, because it allows your money to grow faster) to encourage you to save…but eventually Uncle Sam wants his share, since your contributions were made with untaxed income. (With a ROTH account, however, you’ve contributed net income, not gross. Since you’ve already paid taxes, you won’t pay any more when you withdraw.)
MANDATORY WITHDRAWALS: Once you hit age 70½, you must start withdrawing—and paying taxes on any money you’ve withdrawn (unless it’s a ROTH). The minimum withdrawal at that age is only 3.65% of the total balance, but it increases gradually with each year. However if you live to be 100, the minimum withdrawal is still only 15.87% of the total. (No mandatory withdrawals are required for ROTH accounts.)
LEAVING $$ TO HEIRS: Therefore, if you only withdraw the required minimum over the years, you can leave the rest to your children—who will then have to pay tax on their withdrawals. Before Congress recently changed the law, your children were able to spread the withdrawals over their lifetimes, but now they must drain the accounts completely within ten years of inheriting it. (Your children will not have to pay any taxes on withdrawals from a ROTH account.)
ROTH: These accounts have definite advantages, and if you can afford to contribute net rather than gross income you may prefer to do that. (Ask your tax professional if it makes sense for you.) However if you decide not to go with a Roth, know that traditional non-Roth savings accounts are still wonderful vehicles for saving for your retirement.
For more details, read Liz Weston’s complete article:
When beginning to shop for your first home, start with the options at the lower end of your budget. If you find homes you like in that price bracket, then stop there.
Let’s say you qualify for loan to purchase a 3,800 square foot home with a pool. Very tempting, but deep down you realize that a 2,000 square foot home would be big enough for you. For every additional $1,000 that you pay for the bigger house, you will be paying $1,000 plus interest. By the time you’ve paid off the loan, you may well have paid double that. Remember that buying a bigger house means bigger ongoing expenses, too: utilities, maintenance (roof repairs, painting, etc.)–and property taxes.
That’s money that might be better spent on other important goals over time, such as education, establishing an emergency fund, and saving toward retirement.
Many will argue that your house is a great investment and you should therefore push the limits of your spending ability a bit when buying. Housing has certainly does appreciate nicely over the years, but the averaged stock values of the S&P500 have easily outpaced them over the past 50 years. Just don’t allow yourself to be lured into spending more than you are financially comfortable doing. Go for less than you can afford. You can make improvements to your modest home, when you’re ready, thereby bumping up your equity in a safer, incremental way.
And do try to put 20% down on your house. It will save you from wasting money on private mortgage insurance (PMI) and will help keep you from getting “under water” if the value of your home declines. Aiming to put 20% down also helps you gauge whether or not you can really afford a particular house, too. If you can’t afford 20% for that house, consider looking for a less expensive one, or else waiting—and saving up for that down payment.
Most Americans hold a deep-rooted belief in home ownership. Its size, quality, and location are all status symbols. We tend to say of families with a flashy car and a big, fancy house: “They must have a lot of money!”
Because this family is spending a lot of money on items that go beyond basic comfort levels—including the big house–we assume they’re in a great financial position. But deep down, we know this isn’t rational. To build wealth, you must spend less than you earn.
Top SoCal real estate agent can help you buy real estate in Long Beach, Seal Beach, and San Diego. Find a house for sale that you will love.
To read David Weliver’s complete article, visit:
https://www.moneyunder30.com/why-you-should-buy-less-house-than-you-can-afford
The Real Estate industry can be intimidating to first-time homebuyers, especially when they begin the preapproval and prequalification process. Below we’ll refute the most popular credit myths in today’s real estate market.
Myth #1: Closing an Old Account Will Help Your Credit
This is a very common misconception about credit impact. Lenders mainly review a real estate agent’s client’s credit history by looking at how long accounts have been open. Typically, lenders average out all of your current and past accounts to get an accurate, standard length of time. Therefore, the longer your accounts have been open, the better.
Myth #2: All Debt is Treated Equally
There are many different kinds of debt, and each one has a different risk and purpose. These risks are what lenders evaluate when examining your credit. For example, short-term accounts (credit cards) are viewed as more risky if the account has a high amount of revolving debt. In contrast, a long term debt (a 30 year mortgage) is viewed as less risky because of the extended amount of time you have to pay off your debt. Basically, if you have a maxed out credit card and a car loan with a high balance, the credit card is more detrimental to your credit.
Myth #3: Your Credit Can Be Improved With the Help of Credit Repair Companies
Popular companies, such as Credit Karma, Credit Sesame, Equifax, Experian, and TransUnion advertise their ability to supposedly improve your credit. But before you buy into all of their promises and craft a utopian view of your credit, remember the saying, “if it looks too good to be true, it probably is.” These companies can only help you establish a plan to consolidate your debt. They cannot reverse your debt, nor magically make it disappear. To put it simply, in order to reduce your debt, you need to pay off your account. If homebuyers want to create this plan by themselves, they need to make a spreadsheet with their periodic expenses along with their monthly income to map out a timeline for debt payments.
Myth #4: When You Pay Off Your Debt, It Gets Removed From Your Credit Report
False. A missed payment or a collection has the ability to remain on your credit report for up to 7 years. Even though paying off this debt will stop banks from trying to collect on it, there is no possible way to remove a derogatory mark from your credit history unless it was reported incorrectly.
Myth #5: Your Credit Report Reflects Your Relationship Status
Questions regarding information like employment, income, and relationship status are not reported to credit bureaus and will only come up during the credit application process. Your relationships, whether past or present, do not appear on your credit report. Therefore, if one partner does not pay a debt and you are on the account, you will both be impacted negatively.
As a homebuyer, you should schedule consultations with lenders about entering the preapproval process for a loan and to formulate a plan for debt payment that allows you to have a better interest rate. Real estate agents have an abundance of information about the homebuying process from their years of experience, so feel free to call our top notch agents at VB Realty Group for your credit questions and real estate endeavors.
If you want to read Vance Kellogg’s full article, click the link below.
An ADU is a secondary dwelling unit with complete, independent living facilities for one or more persons and generally takes three forms:
Detached: The unit is separated from the primary structure
Attached: The unit is attached to the primary structure
Repurposed Existing Space: Space (e.g., master bedroom) within the primary residence is converted into an independent living unit
Junior Accessory Dwelling Units: Similar to repurposed space with various streamlining measures
ADUs offer benefits that address common development barriers such as affordability and environmental quality. ADUs are an affordable type of home to construct in California because they do not require paying for land, major new infrastructure, structured parking, or elevators. ADUs are built with cost-effective one or two story wood frame construction, which is significantly less costly than homes in new multifamily infill buildings. ADUs can provide as much living space as contemporary condos being built in new infill buildings, and serve very well for all types of households.
ADUs are a different form of housing that can help California meet its diverse housing needs. Young professionals and students desire to live in areas close to jobs, amenities, and schools. The problem with high-opportunity areas is that space is limited. There is a shortage of affordable units, and the ones that are available are out of reach for many people. To address the needs of individuals or small families seeking living quarters in high opportunity areas, homeowners can construct an ADU on their lot or convert an underutilized part of their home (like a garage) into a junior ADU. This flexibility benefits not only people renting the space, but the homeowner as well, who can receive an extra monthly rent income. ADUs give homeowners the flexibility to share independent living areas with loved ones; they allow seniors to age peacefully with room for extra care and help bring extended family members together while maintaining privacy.
Relaxed regulations and the cost to build an ADU make it an easy, affordable housing option. A UC Berkeley study noted that one unit of affordable housing in the Bay Area costs about $500,000 to develop, whereas the highest price for an ADU goes up to approximately $200,000.
ADUs are a critical form of infill-development that are affordable and offer important housing choices within existing neighborhoods. ADUs are a powerful type of housing unit because they allow for different uses and serve different populations: ranging from students and young professionals to young families, people with disabilities, and senior citizens. By design, ADUs are more affordable and can provide additional income to homeowners. By encouraging the development of ADUs, local governments can improve access to jobs, education and services for many Californians.
With the economic uncertainty that arose due to the coronavirus pandemic, it was expected that remodeling projects and housing changes would decline drastically. However, people who have been working from home and have accessible income may be pondering the idea of renovations to increase home functionality. To effectively conduct a renovation, one must contact contractors and designers for advice. Below we’ll discuss 3 tips for executing a home renovation.
Tip #1: Make Sure Everyone Involved Is On The Same Page
Have a plan for the work you want to get done. Make sure every contractor/designer knows their duties, and clearly outline the details of the project along with who is leading it. Miscommunication can have drastic consequences.
Tip #2: Construct an Agenda
Prepare for mistakes and construction issues by giving yourself enough time on the schedule to recover from any possible missed deliveries, declined permits, or natural disasters. Throughout the renovation, schedule multiple meetings with everyone involved in the project (contractors, designers, and service providers) to ask questions and discuss new information. Joint meetings allow everyone in the party to come together to create an effective, efficient plan.
Tip #3: Carefully Choose the Contractors, Designers, and Other Workers Involved in Your Renovation
Ensure you know their skills and experience, and discuss the building blocks of your renovation plan to gage their perspectives. Even though lower prices are appealing, accepting them may entail a sacrifice of product quality and craftsmen experience. Do not be afraid to question the choices your contractors make; open communication is necessary for a successful home renovation. Guarantee an outstanding home transformation by choosing the best fit for you, whether it’s contractors or paint colors.
To read Michael Lerner’s full article, click the link below.
https://www.washingtonpost.com/business/2020/07/17/tips-handling-major-renovation/
