Is your escrow is still drudging along???
Well be sure it closes before July 1st as the next few weeks are crucial for home buyers who need to close escrow before the end of June to claim the federal home-buyer tax credit.
Prospective purchasers with binding contracts in place as of April 30, 2010 have to close their transaction by June 30, 2010. If the transaction closes July 1st, the buyer will lose out on the tax credit.
Military personnel, deployed overseas for a minimum of 90 days in 2008 or 2009, will have until April 30, 2011 to claim the tax credit. Qualifying income limits are $125,000 for single taxpayers and $225,000 for joint taxpayers.
The maximum allowed home purchase price will be $800,000.
Wednesday, June 2, 2010
Thursday, May 13, 2010
Foreclosures Finally Plateau?
NEW YORK (CNNMoney.com) -- The foreclosure plague may have finally reached its peak in April 2010 -- but don't expect delinquency statistics to plummet anytime soon.
The total number of foreclosure filings -- notices of default, auction notices and bank repossessions -- fell by 9% from March to April, and 2% compared with April 2009, according to data released Thursday by RealtyTrac, the online marketer of foreclosed properties.
This is the first time that has happened in the history of the report, which goes back to January 2006.
But the number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010.
"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau, but at a very high level that will not drop off in the near future," said RealtyTrac CEO James Saccacio.
Saccacio said he expects the pattern to become the norm for many months, with the overall numbers of filings staying high, but not increasing, and repossessions remaining at record levels.
The reason that repossessions can rise while filings hold steady is that lenders are working through a backlog of delinquent properties, taking more of them through the entire process to repossession, rather than letting them linger in limbo.
Walkaways
The numbers of repossessed properties, also called real-estate owned or REOs, have been boosted by a spike in the number of homeowners voluntarily giving up their homes because their the value has dropped so precipitously.
These "strategic defaults" now account for nearly one in three foreclosures, according to a recent report from the University of Chicago Booth School of Business and Northwestern's Kellogg School of Management. That's up from 22% 12 months earlier.
Some homeowners walk away when they are "underwater," owing far more than the value of their home, because they realize that they will never recoup the losses. The further homeowners fall underwater, the more likely they are to leave.
About one in four U.S. homeowners is underwater, according to CoreLogic, a financial data provider. Nearly 5 million of those borrowers owe mortgage debt that exceeds their property values by 25% or more. The total of negative equity in these deeply underwater borrowers is a whopping $655 billion.
Foreclosure epicenters
Nevada continues to rank as the worst-hit foreclosure state, with one of every 69 households receiving some kind of filing. That's nearly six times the national rate which is one household for every 387 receiving a filing.
Foreclosures: How bad is your state?
Arizona had the second highest rate; Florida the third; and California the fourth. California, the largest state in the union, had nearly 70,000 filings, more than any other state. Michigan, where the vast number of foreclosures can be traced to job losses and economic turmoil, recorded more than 19,000.
The metro area market that recorded the highest rate of foreclosure filings in April was Las Vegas, where one of every 60 homes was delinquent, Second was Modesto, Calif., with one in 101, and neighboring Merced, where one in 104 homeowners was in some stage of default.
The total number of foreclosure filings -- notices of default, auction notices and bank repossessions -- fell by 9% from March to April, and 2% compared with April 2009, according to data released Thursday by RealtyTrac, the online marketer of foreclosed properties.
This is the first time that has happened in the history of the report, which goes back to January 2006.
But the number of homes repossessed during April is at an all-time high of 92,432. That is a 45% increase over April 2009. If repossessions continue at this pace, more than 1.1 million homes will be lost in 2010.
"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau, but at a very high level that will not drop off in the near future," said RealtyTrac CEO James Saccacio.
Saccacio said he expects the pattern to become the norm for many months, with the overall numbers of filings staying high, but not increasing, and repossessions remaining at record levels.
The reason that repossessions can rise while filings hold steady is that lenders are working through a backlog of delinquent properties, taking more of them through the entire process to repossession, rather than letting them linger in limbo.
Walkaways
The numbers of repossessed properties, also called real-estate owned or REOs, have been boosted by a spike in the number of homeowners voluntarily giving up their homes because their the value has dropped so precipitously.
These "strategic defaults" now account for nearly one in three foreclosures, according to a recent report from the University of Chicago Booth School of Business and Northwestern's Kellogg School of Management. That's up from 22% 12 months earlier.
Some homeowners walk away when they are "underwater," owing far more than the value of their home, because they realize that they will never recoup the losses. The further homeowners fall underwater, the more likely they are to leave.
About one in four U.S. homeowners is underwater, according to CoreLogic, a financial data provider. Nearly 5 million of those borrowers owe mortgage debt that exceeds their property values by 25% or more. The total of negative equity in these deeply underwater borrowers is a whopping $655 billion.
Foreclosure epicenters
Nevada continues to rank as the worst-hit foreclosure state, with one of every 69 households receiving some kind of filing. That's nearly six times the national rate which is one household for every 387 receiving a filing.
Foreclosures: How bad is your state?
Arizona had the second highest rate; Florida the third; and California the fourth. California, the largest state in the union, had nearly 70,000 filings, more than any other state. Michigan, where the vast number of foreclosures can be traced to job losses and economic turmoil, recorded more than 19,000.
The metro area market that recorded the highest rate of foreclosure filings in April was Las Vegas, where one of every 60 homes was delinquent, Second was Modesto, Calif., with one in 101, and neighboring Merced, where one in 104 homeowners was in some stage of default.
Sunday, May 9, 2010
Are you underwater too?
60 Minutes just aired an interesting piece about homeowners who owe more on their mortgage than what the house is worth. While those who cannot afford their payments are forced into bankruptcy, a growing number of homeowners who CAN afford their payments are simply "walking away" from their homes. In some estimates, 1 in 5 homeowners who go into default, CAN afford to make their payments but are choosing not to!
Nearly 11 million homeowners nationwide are in such circumstances. California has it pretty bad at 33% but our neighbors to the east Arizona and Nevada are in much worse condition boasting negative mortgage rates at 50% and 65% respectively.
According to Bloomberg:
“A growing number of U.S. homeowners owe more than their properties are worth after prices extended their two-year decline in the first quarter.
Almost 21.8 percent of all owners were underwater as of March 31. At the end of the fourth quarter, 17.6 percent of homeowners owed more than their original mortgage, while 14.3 percent had negative equity three months earlier.
Property values dropped 14 percent from a year earlier in the first quarter, reducing the median value of all U.S. single- family homes, condominiums and cooperatives to $182,378, Zillow said. The gain in underwater homeowners will lead to more bank repossessions, the company said.”
With more foreclosures on the way, we will probably see prices continue to fall until we solve our double digit unemployment rate and see fewer homeowners simply walking away from their homes.
Nearly 11 million homeowners nationwide are in such circumstances. California has it pretty bad at 33% but our neighbors to the east Arizona and Nevada are in much worse condition boasting negative mortgage rates at 50% and 65% respectively.
According to Bloomberg:
“A growing number of U.S. homeowners owe more than their properties are worth after prices extended their two-year decline in the first quarter.
Almost 21.8 percent of all owners were underwater as of March 31. At the end of the fourth quarter, 17.6 percent of homeowners owed more than their original mortgage, while 14.3 percent had negative equity three months earlier.
Property values dropped 14 percent from a year earlier in the first quarter, reducing the median value of all U.S. single- family homes, condominiums and cooperatives to $182,378, Zillow said. The gain in underwater homeowners will lead to more bank repossessions, the company said.”
With more foreclosures on the way, we will probably see prices continue to fall until we solve our double digit unemployment rate and see fewer homeowners simply walking away from their homes.
Wednesday, October 7, 2009
Another 4plex just steps from Beverly Hills
http://www.postlets.com/res/2780885
Charming 4plex in an amazing Beverlywood/Beverly Hills Adj. location. All 4 units are rented with good standing tenants and high rents. All 4 units have undergone upgrades in the past 4 years including remodeled kitchens and bathrooms. Laundry facilities on site, 4 garage parking spaces, hardwood floors throughout in every unit, water softener system, grassy courtyard.
Gross income is just under $94,000 per year!
1 unit @ $2100
2 units @ $1900
1 unit @ $1889
Charming 4plex in an amazing Beverlywood/Beverly Hills Adj. location. All 4 units are rented with good standing tenants and high rents. All 4 units have undergone upgrades in the past 4 years including remodeled kitchens and bathrooms. Laundry facilities on site, 4 garage parking spaces, hardwood floors throughout in every unit, water softener system, grassy courtyard.
Gross income is just under $94,000 per year!
1 unit @ $2100
2 units @ $1900
1 unit @ $1889
Monday, September 21, 2009
Tuesday, July 28, 2009
New Listing - 11272 Laurie, Studio City
First time on market in over 20 years!!! 3 Bedrooms, 2.5 Bathrooms + Den located in the most sought after CARPENTER School District. Fabulous unobstructed canyon views from the family room, Large LR with fireplace, formal DR, wet bar, Paneled den, all bedrooms have walk-in closets, master bedroom with 2 walk-in closets, private pool & grassy back yard, OVER 2600+ sqft and 15,000 lot size. Great floor plan, needs TLC. Easy to show.
Proudly offered at $899,000
Thursday, May 28, 2009
The Bottom of the Bubble...
Is yet to come...
No we still haven't hit the bottom of the housing decline but there continue to be positive signs for home buyers. With sales of existing homes increasing nearly 3% in April, primarily due to strong numbers of purchases in low price ranges.
First-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. According to Lawrence Yun, National Association of Realtors chief economist,“Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish.”
Which can be rather frustrating for clients who are qualified to buy in the low $400s that seem to be competing with many other home buyers almost always resulting in multiple offers and bidding wars.
Yun continues, “Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market. Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.”
Let's hope so, Yun! One thing's for sure is that we need to fix unemployment otherwise more homes will be lost to foreclosure and prices will continue to slump with only fewer well-qualified buyers willing to make the plunge into home-ownership.
No we still haven't hit the bottom of the housing decline but there continue to be positive signs for home buyers. With sales of existing homes increasing nearly 3% in April, primarily due to strong numbers of purchases in low price ranges.
First-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. According to Lawrence Yun, National Association of Realtors chief economist,“Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish.”
Which can be rather frustrating for clients who are qualified to buy in the low $400s that seem to be competing with many other home buyers almost always resulting in multiple offers and bidding wars.
Yun continues, “Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market. Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.”
Let's hope so, Yun! One thing's for sure is that we need to fix unemployment otherwise more homes will be lost to foreclosure and prices will continue to slump with only fewer well-qualified buyers willing to make the plunge into home-ownership.
Wednesday, May 20, 2009
Thursday, April 23, 2009
New Condo for Sale - 910 S. Holt Ave., #104
OPEN HOUSE SUNDAY 4/26 from 2-5pm!!!| Large and Spacious 2bed/2bath | ||||||||||||||||
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Extremely spacious and bright unit in a highly sought after Beverly Hills Adjacent location. Incredibly low HOA dues at only $240/month! Unit features over 1,400 sqft with new carpets, gorgeous stone fireplace, large bedrooms, wet bar, balcony and tons of storage space. EZ to show and great location near La Cienega park, shops, places of worship and restaurants.
New Condo for Sale - 910 S. Holt Ave., #104
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Central A/C
Thursday, February 19, 2009
The Stimulus Package and You
So Obama and Congress just passed a historic stimulus package to boost our economy but what does it mean for the real estate industry and prospective buyers?
Well one of the key components to the package was injecting $50 billion to stem foreclosures. Just to give you a relevant statistic, 2.3 million homeowners faced foreclosure proceedings in 2008, up 81% from 2007.
The scary thing is that some analysts believe that number could reach as high as 10 million Americans!
Another step in the right direction was the passing of an $8,000 tax credit (originally was $15,000) for first-time home buyers who buy before December 1, 2009 and occupy the home. That's 8 grand that you will not have to pay back and comes out of the taxes you pay!
Also integral, especially for our expensive Los Angeles market, is the increase in loan caps from $625,000 to $729,750 generated from FHA, Freddie and Fannie Mae.
Combine these incentives with tax credits for most wage earners ($400 for individuals and $800 for couples), plus still falling home prices and you've got a better reason to consider buying a home!
Well one of the key components to the package was injecting $50 billion to stem foreclosures. Just to give you a relevant statistic, 2.3 million homeowners faced foreclosure proceedings in 2008, up 81% from 2007.
The scary thing is that some analysts believe that number could reach as high as 10 million Americans!
Another step in the right direction was the passing of an $8,000 tax credit (originally was $15,000) for first-time home buyers who buy before December 1, 2009 and occupy the home. That's 8 grand that you will not have to pay back and comes out of the taxes you pay!
Also integral, especially for our expensive Los Angeles market, is the increase in loan caps from $625,000 to $729,750 generated from FHA, Freddie and Fannie Mae.
Combine these incentives with tax credits for most wage earners ($400 for individuals and $800 for couples), plus still falling home prices and you've got a better reason to consider buying a home!
Thursday, February 5, 2009
New Condo Listing - 353 S. Reeves Dr. #202 Beverly Hills
Don't miss this opportunity to own a gorgeous French style custom decor condo in a great Beverly Hills location!!!
Unit features include:
- 3 bedrooms and 3.5 baths
- 1807 square feet of living space
- Large living room with sleek hardwood floors, fireplace and multiple balconies
- Master suite has its own fireplace
- All bedrooms have their own bathroom
- Washer/Dryer
- 3 Side by side subterranean parking
- High ceilings
- Central A/C & heat
- Complex has a huge sundeck
- Close to Rodeo Dr, shops, restaurants & places of worship.
SELLER FINANCING IS AVAILABLE!!!
EZ to show call Joseph at 310-985-4746.
Tuesday, January 27, 2009
The Economic Downturn and You...
As I was listening to NPR yesterday, they aired a short segment where the journalist was trying to figure out a name of our current economic state.
At first it was called "The Subprime Meltdown" or "The Credit Crisis" and after months of denial by the Bush Administration, they formally announced that our country is in a recession in midst of the presidential campaign.
Now many of our politicians and economists agree "we are in the worst economic downturn since the Great Depression," and according to President Obama, "it's likely to get worse before it gets better."
So where does that leave us with our current real estate market?
Well unless you've spent the last 6 months under a rock in South East Asia (wow, that sounds like so much fun), you've probably noticed that prices are coming down...
- According to another source, 70% of all foreclosed properties in Los Angeles are yet to hit the market.
- Group that with mounting unemployment, the lowest consumer confidence in history and the fact that over 11 million homeowners (roughly 1/7) no longer have equity in their homes. It is safe to say that prices are likely to come down even more.
But wait, there is good news too...
Especially for first time home buyers who are looking to stay at their current residence for at least 3-5 years and can ride out the wave.
- First time home buyers can access a $7,500 credit from the federal government (that must be paid back over 15 years) to be used for a downpayment. Plus, you can withdraw money from your 401k with NO penalty charge, though tax implications still apply (Be sure to consult with a tax professional for all details).
- According to the National Association of Realtors (NAR), existing home sales during the month of December increased 6%.
- Interest rates are at a record low: Conforming Loans (under $417,000) can be found at 4.375%.
So for those still on the fence, who have stable jobs and good credit, save your money for that downpayment and give us a call when you're ready to buy that house! Once the LA real estate market bounces back, you'll most likely never be able to buy a house at these prices again...
At first it was called "The Subprime Meltdown" or "The Credit Crisis" and after months of denial by the Bush Administration, they formally announced that our country is in a recession in midst of the presidential campaign.
Now many of our politicians and economists agree "we are in the worst economic downturn since the Great Depression," and according to President Obama, "it's likely to get worse before it gets better."
So where does that leave us with our current real estate market?
Well unless you've spent the last 6 months under a rock in South East Asia (wow, that sounds like so much fun), you've probably noticed that prices are coming down...
EXPECT PRICES TO CONTINUE TO FALL!- NINJA (No Income No Job or Asset) loans, yes they actually called them that, are just beginning to go into default. These loans were mostly prevalent in vacation/2nd home or investment purchases in areas like Miami Beach or Las Vegas and subsequently have destroyed those markets.
- According to another source, 70% of all foreclosed properties in Los Angeles are yet to hit the market.
- Group that with mounting unemployment, the lowest consumer confidence in history and the fact that over 11 million homeowners (roughly 1/7) no longer have equity in their homes. It is safe to say that prices are likely to come down even more.
But wait, there is good news too...
Especially for first time home buyers who are looking to stay at their current residence for at least 3-5 years and can ride out the wave.
- First time home buyers can access a $7,500 credit from the federal government (that must be paid back over 15 years) to be used for a downpayment. Plus, you can withdraw money from your 401k with NO penalty charge, though tax implications still apply (Be sure to consult with a tax professional for all details).
- According to the National Association of Realtors (NAR), existing home sales during the month of December increased 6%.
- Interest rates are at a record low: Conforming Loans (under $417,000) can be found at 4.375%.
So for those still on the fence, who have stable jobs and good credit, save your money for that downpayment and give us a call when you're ready to buy that house! Once the LA real estate market bounces back, you'll most likely never be able to buy a house at these prices again...
Friday, January 9, 2009
New Listing for the New Year!
535 N. Detroit St., Los Angeles, CA 90036
Amazing location in Miracle Mile one block West of La Brea and North of Beverly!
Walking distance to restaurants, shops, schools and places of worship! Exquisite Spanish 3bd + 2ba + family room or 4th bedroom. Nearly 1,900 square feet of living space on a large lot (6,600 sqft). Features: Central hall floor plan, spacious living room with fireplace and hardwood flooring. Formal dining room. Updated kitchen and breakfast area including two dishwashers. Master suite with walk-in closet and private bathroom with double sinks leads to beautiful backyard!
This is a SHORT SALE!!!
Offered at $895,000
Amazing location in Miracle Mile one block West of La Brea and North of Beverly!
Walking distance to restaurants, shops, schools and places of worship! Exquisite Spanish 3bd + 2ba + family room or 4th bedroom. Nearly 1,900 square feet of living space on a large lot (6,600 sqft). Features: Central hall floor plan, spacious living room with fireplace and hardwood flooring. Formal dining room. Updated kitchen and breakfast area including two dishwashers. Master suite with walk-in closet and private bathroom with double sinks leads to beautiful backyard!
This is a SHORT SALE!!!
Offered at $895,000
Sunday, November 2, 2008
Help is on the Way!!!
Good news for former Washington Mutual loan holders:
Today, JP Morgan Chase, who recently bought WAMU in the largest bank failure in United States history, announced they will hault foreclosure proceedings for 90 days for eligible homeowners.
The move comes at a critical point in the housing sector and is a win-win for both struggling homeowners and banks. An estimated 400,000 homeowners could avoid foreclosure and stay in their homes by renegotiating interest rates and loan terms amounting to roughly $70 billion.
The programs will apply to people who live in their homes and have sub-prime mortgages, pay-option mortgages or negative amortization loans. The company said these loans could be changed to 30-year loans, fixed rate loans or even interest only loans, depending on each individual situation.
Look for other banks to follow suit:
With Chase setting the example, look for Bank of America who purchased Countrywide and Wells Fargo who bought Wachovia (both of which held high levels of bad sub-prime debts) to make similar programs available for their clients.
Keeping foreclosure rates low is a key step to stabilize the struggling real estate market and help the banks reduce their bad debts and reestablish good lending practices.
It's a step long overdue by the banks but will soon be certain to many, extremely necessary!
Today, JP Morgan Chase, who recently bought WAMU in the largest bank failure in United States history, announced they will hault foreclosure proceedings for 90 days for eligible homeowners.
The move comes at a critical point in the housing sector and is a win-win for both struggling homeowners and banks. An estimated 400,000 homeowners could avoid foreclosure and stay in their homes by renegotiating interest rates and loan terms amounting to roughly $70 billion.
The programs will apply to people who live in their homes and have sub-prime mortgages, pay-option mortgages or negative amortization loans. The company said these loans could be changed to 30-year loans, fixed rate loans or even interest only loans, depending on each individual situation.
Look for other banks to follow suit:
With Chase setting the example, look for Bank of America who purchased Countrywide and Wells Fargo who bought Wachovia (both of which held high levels of bad sub-prime debts) to make similar programs available for their clients.
Keeping foreclosure rates low is a key step to stabilize the struggling real estate market and help the banks reduce their bad debts and reestablish good lending practices.
It's a step long overdue by the banks but will soon be certain to many, extremely necessary!
Monday, October 6, 2008
The Citron - 3% Agent Incentive in October!
With only a few select models still available in the luxurious modern condos, our seller is providing a 3% commission incentive to all participating buyers' agents who open escrow in any of the remaining units through the end of October.
Updated open house hours:
Tuesdays: 11-2pm
Sundays: 2-5pm
For any private showings feel free to contact Joseph at 310-985-4746
Updated open house hours:
Tuesdays: 11-2pm
Sundays: 2-5pm
For any private showings feel free to contact Joseph at 310-985-4746
Monday, September 22, 2008
A Busy Month for The Shamash Team
Despite the strong concerns of our current real estate market and what seems to be constant turmoil in our financial sector, The Shamash Team is forging ahead and has entered into 3 escrows this past month.
Beginning with a 4-unit complex on West Blvd that was one step away from falling into foreclosure, we were able to close escrow a few weeks ago despite the arduous process of dealing with a short sale and bank approval.
The next sale was a probate tear down in the heart of the Beverlywood adjacent area. The sellers were asking only for all cash offers and held only one showing of the house. If you could have only witnessed the scene as over 30 prospective buyers and agents were waiting patiently to view the house one at a time.
And yes, our offer was the one that was accepted!
Lastly, we represented a buyer for a 2 bed/2bath condo in the new Kosher-condo development on Shenandoah, which is scheduled to close this week.
While many prospective buyers are waiting on the sidelines during the down swing of the market, there are still plenty of deals available with sellers who are willing to negotiate.
Hopefully, the next deal will be yours and The Shamash Team will be there to represent you!
Beginning with a 4-unit complex on West Blvd that was one step away from falling into foreclosure, we were able to close escrow a few weeks ago despite the arduous process of dealing with a short sale and bank approval.
The next sale was a probate tear down in the heart of the Beverlywood adjacent area. The sellers were asking only for all cash offers and held only one showing of the house. If you could have only witnessed the scene as over 30 prospective buyers and agents were waiting patiently to view the house one at a time.
And yes, our offer was the one that was accepted!
Lastly, we represented a buyer for a 2 bed/2bath condo in the new Kosher-condo development on Shenandoah, which is scheduled to close this week.
While many prospective buyers are waiting on the sidelines during the down swing of the market, there are still plenty of deals available with sellers who are willing to negotiate.
Hopefully, the next deal will be yours and The Shamash Team will be there to represent you!
Wednesday, August 13, 2008
Ed McMahon's House
For all of you who are watching the real estate market there is a true gem out there that is enshrined in Hollywood history. Yes, it's Ed McMahon's house in Beverly Hills and it's about to go into foreclosure!
As you might have heard, the McMahon's are in some serious financial trouble and if they don't sell their house within the next 2 weeks, they will lose their home and a lot of their personal property as well.
Here's the catch...it's a short sale at $4.6 million and it needs to be sold quickly!
If anyone knows a buyer in this price range, I am more than happy to split the commission with you!
Some features of the property include:
- 6 bedrooms & 5.5 baths
- 7,013 sq feet of living space situated on a 15,000 sq ft lot
- The Summit - The Prestigious Gated community in Beverly Hills
- Price reduced $1.9 million last week!
As you might have heard, the McMahon's are in some serious financial trouble and if they don't sell their house within the next 2 weeks, they will lose their home and a lot of their personal property as well.
Here's the catch...it's a short sale at $4.6 million and it needs to be sold quickly!
If anyone knows a buyer in this price range, I am more than happy to split the commission with you!
Some features of the property include:
- 6 bedrooms & 5.5 baths
- 7,013 sq feet of living space situated on a 15,000 sq ft lot
- The Summit - The Prestigious Gated community in Beverly Hills
- Price reduced $1.9 million last week!
Monday, July 7, 2008
Rent Increases - To be or not to be?
As a property owner in Santa Monica, California, this is the time of year when we get our annual notification of the City's maximum allowable rent increases to our tenants.
This year the City has allowed an increase of 2.7% for tenants who have been occupying a unit for at least 1 year and the term of their lease has expired or reached a month-to-month status.
And while these increases, if only at marginal amounts, are welcomed by landlords who seek positive cash flow and further relief from their massive mortgage payments, the dilemma lies in who deserves a rent increase.
Does the good tenant who pays his rent on time, takes great care of the property and calls whenever there is a problem warrant a rent increase if his unit is below market value?
And with soaring gas and food prices, inflation knocking on our doorstep and an economy that is screaming RECESSION, who bears the grunt of the financial responsibility...the Landlord who relies on rents to satisfy his payments or the good Tenant?
Well if you ask the City of Santa Monica, their answer is clear: It's the wealthy, property owning Landlord vs. the unfortunate Tenant.
So what's the solution?
It's hard not to take into account market forces of supply and demand in situations like this. If a unit is being rented out below market value and the terms of the lease have expired, there is no logical reasoning why the rents shouldn't be justifiably increased to reflect the current conditions.
Furthermore, with the current and unforseeable trend in higher gas prices, there is an increasing demand for rental units in the Westside. And if an extra $50 a month is an insurmountable expense for a tenant, then there are others waiting for their departure.
But for the landlord with the great tenants, the answer is simple.
You give all tenants their maximum allowable rent increase in compliance with the City's law but if they truly deserve that money back, give them a refund during the holiday season with a note saying, "Thanks for being such a great tenant."
This year the City has allowed an increase of 2.7% for tenants who have been occupying a unit for at least 1 year and the term of their lease has expired or reached a month-to-month status.
And while these increases, if only at marginal amounts, are welcomed by landlords who seek positive cash flow and further relief from their massive mortgage payments, the dilemma lies in who deserves a rent increase.
Does the good tenant who pays his rent on time, takes great care of the property and calls whenever there is a problem warrant a rent increase if his unit is below market value?
And with soaring gas and food prices, inflation knocking on our doorstep and an economy that is screaming RECESSION, who bears the grunt of the financial responsibility...the Landlord who relies on rents to satisfy his payments or the good Tenant?
Well if you ask the City of Santa Monica, their answer is clear: It's the wealthy, property owning Landlord vs. the unfortunate Tenant.
So what's the solution?
It's hard not to take into account market forces of supply and demand in situations like this. If a unit is being rented out below market value and the terms of the lease have expired, there is no logical reasoning why the rents shouldn't be justifiably increased to reflect the current conditions.
Furthermore, with the current and unforseeable trend in higher gas prices, there is an increasing demand for rental units in the Westside. And if an extra $50 a month is an insurmountable expense for a tenant, then there are others waiting for their departure.
But for the landlord with the great tenants, the answer is simple.
You give all tenants their maximum allowable rent increase in compliance with the City's law but if they truly deserve that money back, give them a refund during the holiday season with a note saying, "Thanks for being such a great tenant."
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