Why Buy Now? Because “Real Life Isn’t A Game.” 

                                           

“Real Life” is about “Real Decisions”           and “Real Financial Opportunities.”  

Real Estate Resource Services can show you how take advantage of the current real estate market and get you on the way to your new home. 

“Why Buy Now?” • HOMES ARE SELLING!  

o 35,860 New and Resale houses and condos were sold in California in the month of November 2009, down 13.1% from October and up 11.5% from 32,163 from November 2008.   

• HOMES ARE NOW AFFORDABLE!   o The median price paid for a home in November was $261,000, up 1.6% from $258,000 in November 2008. The year‐over‐year increase was the first since July 2007 when the $478,000 median was up 0.8 percent from $474,000 a year earlier. 

o  • PAYMENTS ARE LOW!  

o The typical mortgage payment that home buyers committed themselves to paying last month was $1,106, 58.1% below the current cycle's peak in June 2006.  

Source: MDA DataQuick Information Systems. All rights reserved.  

$250,000$270,000$290,000$310,000$330,000$350,000$370,000$390,000$410,000$430,000$450,000$470,000$490,000$510,000$530,000$550,000

ALES

PR

ICE

CALIFORNIA MEDIAN HOME SALES PRICE December 1968 - November 2009

$10,000$30,000$50,000$70,000$90,000

$110,000$130,000$150,000$170,000$190,000$210,000$230,000

,

1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

SA

YEARSource: Empire Real Estate Group Inc. 2004-2006 and San Francisco Chronicle 2006-2008. *2009 November - www.dqnews.com/RRCA0208.shtm

“Why Buy Now?”  

• INTEREST RATES ARE LOW !  o Mortage Lenders have lowered interest rates to the lowest point in 50 years but they are STARTING TO RISE!  

• SPECIAL LOAN PROGRAMS HAVE BEEN CREATED FOR RENOVATION AND REPAIRS!   

o “Finance Repairs” to be completed after the close of escrow into your home loan.  

o Loan amounts are based on the improved value of the home. o Renovation costs are spread throughout the mortgage term. o All expenses are included in a single transaction. 

8.008.509.009.50

10.0010.5011.0011.5012.0012.5013.0013.5014.00

TE

RE

ST R

AT

E

NATIONAL MONTHLY INTEREST RATE STATISTICS From January, 1984 to January, 2010

1/6/2010

4.004.505.005.506.006.507.007.50

83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Jan 2010

IN

YEAR

Source: www.hsh.com/natmo83.html Interest rate as of January of each year.

“Why Buy Now?” • CALIFORNIA’S POPULATION CONTINUES TO GROW!  

o California has both high rates of population growth and a constrained supply of developable land. 

o For that reason, home prices will climb and we will again experience a long‐term imbalance between supply and demand in the future housing market. 

• OVER 70% OF CALIFORNIA’S POPULATION GROWTH IS DUE TO BIRTHS! o As families grow in their numbers, so do their needs for larger homes. o Marriages, employment, military transfers, promotions, retirements etc., all contribute to changes in housing requirements. 

• HOUSING CONSTRUCTION STARTS ARE AT THE LOWEST LEVEL SINCE 1955! 

o As the supply of available housing diminishes, demand increases and the cycle moves upward in value and pricing.    

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

POPULAT

PROJECTED POPULATION GROWTH FOR CALIFORNIA

POPULATION

0

5,000,000

10,000,000

15,000,000

20,000,000

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

ION

YEAR

Source: U.S. Census Website of State Population Facts

7,500,0008,000,0008,500,0009,000,0009,500,000

10,000,00010,500,00011,000,00011,500,00012,000,00012,500,00013,000,00013,500,00014,000,000

SOUTHERN CALIFORNIA POPULATION GROWTH BY COUNTY From 2000-2040

RIVERSIDE COUNTY

SAN BERNARDINO COUNTY

SAN DIEGO COUNTY

LOS ANGELES COUNTY

ORANGE COUNTY

1,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,0005,500,0006,000,0006,500,0007,000,000

2000 2040

YEAR2020

Source: Institute of Urban and Regional Development, University of California, Berkeley

COMPARE RENTING TO BUYING

RENTING BUYING

1. Your future is partly controlled 1. You control your future. by your landlord. 2. The mortgage interest and real

2. You receive no federal tax benefit estate taxes are tax deductible. as a renter. 3. Rising home prices increase your

3. You may experience rapidly increasing equity position. rent payments that are hard to budget for. 4. Every month you pay down your

4. Rising rental costs may make you move loan, you are planning towards before you are ready. your retirement. 5. Any improvements you make benefits 5. A new home is NEW! You won’t your landlord and not you. have large unexpected expenses. 6. Landlord may sell leaving you homeless 6. With a new home you have or little time to relocate. opportunity to select options and upgrades that suit your taste.

MONTHLY RENT 1 YEAR 5 YEARS 10YEARS 20YEARS $1,500 $18,000 $90,000 $180,000 $360,000

$1,800 $21,600 $108,000 $216,000 $432,000 $2,000 $24,000 $120,000 $240,000 $480,000

Let us show you how to make your hard earned money work for you, not

your landlord.

Purchase PriceAnnual Appreciation 5.00%

After Year 1 X 5.00% = 20,745.00$ 435,645.00$ (purchase price) (apprec factor) (estimated appreciation) (estimated Value after 1 yr)

After Year 2 X 0.00% = -$ 435,645.00$

After Year 3 X 0.00% = -$ 435,645.00$

After Year 4 X 5.00% = 21,782.25$ 457,427.25$

After Year 5 X 5.00% = 22,871.36$ 480,298.61$

After Year 6 X 5.00% = 24,014.93$ 504,313.54$

After Year 7 X 5.00% = 25,215.68$ 529,529.22$

Estimated Value After 7 years, based on historical data= 529,529.22$

Less Original Purchase Price 400,000.00$

Potential Equity Appreciation 129,529.22$

Initial Equity Investment, based on 5% down 20,000.00$

Potential Equity Gain= Appreciation + Initial Investment 149,529.22$

Potential Income Tax Savings over 7 years 53,911.07$

Initial Equity Investment + Potential Appreciation + Tax Savings 203,440.29$

Monthly Investment, inc. interest and property tax 215,644.28$

Actual Cost of Home Ownership over 7 years 12,203.99$ Not only did you live in you home for free for 7 years, you would have added

this amount to your net worth!

ESTIMATED FUTURE HOME VALUE

414,900.00$

435,645.00$

435,645.00$

414,900.00$

435,645.00$

457,427.25$

480,298.61$

504,313.54$

RENT VS OWN RENTER OWNER

MONTHLY PAYMENT $_______________ PURCHASE PRICE $______________________________

ANNUAL INCREASE $_________________ DOWN PAYMENT $______________________________ RENT

YR 1 $___________ X 12 = $_____________ LOAN AMOUNT $________________________________

YR 2 $___________ X 12 = $_____________ INT. RATE _______% TERM______________________

YR 3 $___________ X 12 = $_____________ MO. INVESTMENT $_____________________________

YR 4 $___________ X 12 = $_____________ PROP TAX ______% PER MO$____________________

YR 5 $___________ X 12 = $_____________ APPROX. TAX BENEFIT _______________________%

YR 6 $___________ X 12 = $_____________ MO SAVINGS $__________________________________ YR 7 $___________ X 12 = $_____________ PMT AFTER TAX $_______________________________

TOTAL (LOSS) $_______________________ *ESTIMATED NET MONTHLY INVESTMENT AFTER TAX. MONTHLY INVESTMENT $_______________ X 12 =

$_______________ X 7 YEARS = $__________________

**TOTAL POTENTIAL HOMEOWNER GAIN $___________________________________

ESTIMATED FUTURE HOME VALUE

PURCHASE PRICE $ ___________________________

ANNUAL APPRECIATION _____________% YR 1 $_____________________ X__________% = $______________________________ (PURCHASE PRICE) (APPREC) (ESTIMATED VALUE) YR 2 $ ____________________ X __________ % = $______________________________ YR 3 $ ____________________ X __________ % = $______________________________ YR 4 $ ____________________ X __________ % = $______________________________ YR 5 $ ____________________ X __________ % = $______________________________ YR 6 $ ____________________ X __________ % = $______________________________ YR 7 $ ____________________ X __________ % = $______________________________ ESTIMATED VALUE AFTER _______ YEARS = $ ______________________________ PLUS DOWN PAYMENT AND IMPROVEMENTS $_____________________________ TOTAL ESTIMATED VALUE AFTER _____YRS = $_____________________________ ESTIMATED VALUE $_________________________________ LESS PURCHASE PRICE $______________________________ TOTAL POTENTIAL GAIN $____________________________

*ESTIMATED MONTHLY NET INVESTMENT IS CALCULATED BY SUBTRACTING THE MONTHLY TAX SAVINGS AND ADDING ANY FEES SUCH AS HOA, MELLO ROOS, ETC. **TOTAL POTENTIAL GAIN IS CALCULATED BY SUBTRACTING THE PURCHASE PRICE FROM THE ESTIMATED VALUE.