Thursday, October 18, 2018

reverse mortgages

I just went to a lunch and learn about reverse mortgages yesterday.  Being in the business I had a rough idea of what a reverse mortgage was and how it works, but I really didn't.  There's multiple different reverse products and some can really make sense for some folks in particular situations.   I was made aware of a new where you obtain a reverse mortgage but it becomes a credit line.  You get the going rate plus a half a point and it will compound.  The longer you wait to pull the cash the more it grows.  Very interesting, it also get the gears going for me wondering where they put that money.  They have to be putting it somewhere in order to pay the gains.  The question is out to Big Valley mortgage now. 
The traditional reverse can work for people that are looking to more financial freedom in the golden years.  If you don't have kids and not really worried about leaving an inheritance, then a reverse is perfect.  Maybe you do have kids but you have other assets that you set aside for them.  Using a reverse mortgage can be the ticket.  It's becoming more popular that I ever imagined.  The baby boomers are getting to the age and they like the bigger and better.  They're not as conservative as their parents were.  I'm skeptical of the stat, but I was told 47% of the baby boomers are moving up, not down.  I thought it would have been around 10% of boomers moving up.  Typically seniors buy down, the kids are gone, don't need as big a place anymore.  Not our boomers!  lol.  A true testament to capitalism.
If you have questions about reverse mortgages, you can get in touch with Jeff Silver 916-204-4653

Friday, October 12, 2018

Octoberfest in Roseville Real Estate update

I can't recall how long it's been since my last Placer County / Sacramento County real estate update, but I know it's been a couple months.  Just like the season changing to fall, our market has hit the breaks.  We're seeing the market shift to more of a buyers market.  Inventory is up and less buyers out and about.  Rates are along climbing so it's having a negative effect on prices too.
We have real estate investors out there that are on the fence.  As investors we want to buy when the market is low and sell high... just like stock market and there's the general consensus that the market will continue to decline.  In my opinion, yes.  I think the market will pull back more; however, I just bought a rental property last month.  When I ran the numbers, it made sense to do the deal.  I put down 25% and I'm cash flowing $500 a month.  I did also have to put in 15,000 in improvements after closing escrow, but it should be a solid property with little to no issues for me in the near future.  I needed a write off, this is also going to help me come tax time.  There are a multitude of factors that go into an informed decision to buy a rental.  Having a good realtor/broker like myself to help guide you is important.  With me you'll get my experience in construction too.  I'm not saying I'm a licensed contractor, but I've worked for a home remodeling company and I've done enough work on my own properties to know what needs to be done and what it should cost.  I also have the people to recommend to get work done too. 
Back to the market, I do think we'll see a pull back in pricing.  It's not going to be substantial, 2-5% and we've already see a portion of that.  Interest rates are going to effect what people can afford to buy in Roseville.  I have clients that are considering parts of Citrus Heights because the prices are lower compared to Roseville.  There are pros and cons, school scores, different county! 
After checking the stats we're seeing a tend that is to be expected this time of year.  A decline in sales and values are part of the normal trend, it's cyclical.  Is there more to it?  I think we dealing with both a market correction and normal trend that the market slows this time of year.  We've been going up and up since 2012.  Cannot go on forever!  At the end of the day, if you're needing a place to live and you can qualify and comfortable with the payments, buy it.  It will be better for you in the long run vs renting.  Any questions, feel free to give me a call.  Your roseville real estate agent singing off.

-Chad Phillips
Re/Max Gold
DRE # 01405825