Should I do a House Swap?

I saw this helpful artical today on home exchanges...you know, like the movie the Holiday, where Cameron Diaz trades her LA mansion for Kate Winslet's English home for Christmas.

Here's the article:
Sure, you'd like to take your dream vacation this summer, but funds are, shall we say, a little tight. One way to cut costs is to house swap. Just imagine trading your Mission Hills craftsman bungalow for an apartment in Paris. Or swapping your downtown condo for a villa in the Tuscan hills. While the concept of exchanging homes sounds intriguing, the idea of opening up your home to a relative stranger is kind of scary, too. Before you trade keys, here's what you need to know.

First, how do I even find someone to exchange homes with? There are plenty of sites out there to assist in the matchmaking process, including homeexchange.com and homeforexchange.com. Those sites charge an annual fee. Andi Brown, a talent booker in San Diego, found a house-swap partner through craigslist.com when she was looking for a cheap place to stay in Austin, Texas.

How do I know that I won't end up with a psycho or that the house won't turn out to be a total pit? Communication is key, say the experts. Think of it almost as an online dating process, explains Ed Kushins, president of homeexchange.com. You start by sussing each other out by looking at pictures online and then testing compatibility with e-mail exchanges. Brown says that through a lengthy e-mail dialogue, she was able to get a good sense of the type of person she was dealing with. By the time they spoke on the phone, Brown says, it was if she was talking to a friend. Also, if a person has exchanged homes before, you can ask for references. On homeexchange.com, for instance, past swap partners also can leave feedback.

What if we don't have the same standards for cleanliness? That can be the biggest point of contention, says Ans Lammers, owner of homeforexchange.com. The best tact is to be brutally honest with a potential swap partner. If you are a neat freak, say so. If you're a little more, um, laid back, explain that as well. If it seems like you are not on the same page when it comes to housekeeping expectations, it might be best to pass on that particular exchange possibility.

What do I do about Fido and Fifi? That is entirely up to you and your house-trading comrade. If you have pets, taking care of them can be part of the exchange. If you only like cats and dogs of the stuffed-animal variety, then have the other homeowners board their furry friends.

How can I make sure that my home is left in an acceptable manner?
Lammers suggests having a contract as part of any swap to spell out exactly what each party expects. (Click here to see a sample contract.) She also recommends asking a neighbor or friend to inspect the home before the exchange partner leaves. You also may want to exchange deposits.

What should I put away?
Anything personal like banks statements, bills and even photos. If you have expensive jewelry or artwork, you should lock that away, too.

My place is hardly ready for the pages of Metropolitan Home. Will anyone even want to stay here? You'd be surprised, but yes. Sure, you'll have a better chance of snagging a swanky three-bedroom apartment on the Left Bank if you have a fat pad close to the ocean, but you can still find an exchange partner if you have a small house in a less flashy part of town, Kushins says. You will, however, probably have to be more aggressive and send out as many inquiries as possible. Brown's house-swapping partner was looking for a cottage near the beach, but she contacted him even though her place is in South Park.

How can I get people interested in my house? Post pictures of your place, lots and lots of pictures. Also, post pictures of yourself and your family and tell prospective swappers as much as you can about yourself and your city and all its benefits. If you live in Escondido, for instance, explain how your home is within driving distance to all Southern California's attractions, Kushins recommends. Being flexible about timing helps, too, Lammers says. Offering a car swap is another way to entice would-be partners.

Car swapping?
Really? That just sounds, well, fraught. Kushins says about 50 percent of people switch cars, as it saves on rental car costs. Most insurance policies have guest-driver coverage, but you will want to double-check with your insurer. If you do exchange cars, Kushins recommends writing out a note to be placed in the glove compartment that gives the other person permission to drive the car and provides insurance information as well.

Source: San Diego Union-Tribune

25% of Americans Still Eager to Buy Homes

Nearly 25 percent of adults say they plan to purchase a home in the next five years and half of those (53.5 percent) will be first-time home buyers, according to a survey commissioned by Move Inc., operator of Realtor.com.

More than 18 percent cite the $8,000 tax credit as a motivating factor. Potential home buyers with higher incomes are more interested in the tax credit than those in lower income brackets, with 43.4 percent of potential first-time buyers who earn $50,000 or more saying they plan to use the tax credit.

According to the survey, half of all Americans (49.6 percent) are paying more attention to home values today than they were a year ago, especially those ages 25 to 34 (61.9 percent). The median age of first-time home buyers is 30 years old.The Move survey uncovered changing attitudes toward owning a home. About two-thirds (62.5 percent) now consider their home primarily a place to live as opposed to an investment. Adults earning up to $20,000 and between $30,000 and $39,900 annually are significantly more likely to feel most strongly that a home is more of a place to live than an investment as compared to those earning $50,000 or more.

When presented with a list of amenities, home owners wanted it all–with more space leading the list (about 10 percent chose that option). Other amenities that were high on many shoppers’ lists included energy saving features (6.8 percent), bigger or nicer yard (6.1 percent), a better location (4.2 percent), or updated amenities (3.4 percent).The Move survey also found that 18 percent plan to take advantage of the Obama administrations program to prevent foreclosures.

• But even for those who are not in foreclosure, they reported the following:
• 21 percent of all home owners with a mortgage contacted a lender in the last 12 months to restructure their loans.
• 10.6 percent received help; 5 percent are still waiting for an answer.
• 27 percent know someone who is likely to face foreclosure.
• 25.6 percent know someone whose mortgage is underwater.

Source: Realtor Magazine

Coronado Best Buys List, 3.20

Greetings!

Everyone asks us, "what are the best deals on the market right now in Coronado?" In response to this, we created the Coronado Best Buys List. We make our selections based on like price, square footage, location, lot size, and other important factors. We update this list every couple of weeks or so, so the information stays pretty current.

If you'd like to subscribe to this list, and get more informaiton and photos on each listing, please contact christinevt@prusd.com anytime.

Without further ado, here is the Coronado Best Buy List.

$475,000—939 D Avenue, condo, 2/1.
$575,000—553 F Avenue, condo, 3/2.
$659,000—17 Montego Court, condo, 2/2.
$689,000—1830 Avenida Del Mundo, #714, condo, 1/1.
$725,000—48 Antigua, condo, 2/2.
$650,000-$699,000—61 Delaport, house, 2/2.
$995,000—415 A Avenue, house, 3/2.
$999,000—222 E Avenue, house, 3 / 4.
$1,250,000—1707 Visalia Row, house, 3/2.
$1,195,000-$1,275,000—424 B Avenue, house, 3/3.
$1,299,000—730 Coronado, house, 3/2.
$1,725,000—49 Green Turtle Road, house, /3/3.
$1,800,000—721 J Avenue, house, 3/2.
$1,950,000—723 A Avenue, house, 5/3.

Email christinevt@prusd.com to get more info on these listings.

Investors Sue After Donald Trump's Tijuana Resort Fails

Sixty-nine buyers of the failed hotel-condo Trump Ocean Resort Baja in Tijuana, Mexico, are suing Donald Trump after the actual developer said there was no money to refund deposits totaling about $20 million.

The suit, filed in Los Angeles Superior Court, seeks unspecified damages against Trump, his children Ivanka and Donald Jr. It accuses Trump and his company of fraud, negligence, unjust enrichment and violating federal disclosure laws.

In December, the Mexican developer, PB Impulsores told buyers that Trump merely licensed his name and wasn’t an investor. And in a statement last week, the Trump Organization said it had ended the licensing agreement. The lawsuit claims that Trump had a peripheral role because sales brochures said, "Mr. TRUMP is personally involved in everything his name represents."

Source: The Associated Press (03/14/2009)

How Will Foreclosure Affect Credit Scores?

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.

FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.

''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''

One of the country’s largest credit unions Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”

Source: The New York Times, Ron Lieber (03/14/2009)

FHA Loans Become a Popular Choice

Newly discovered FHA loans, which require low down payments but charge higher interest to borrowers with lower credit ratings, have quickly become a wildly popular choice for home buyers.

The loans require a down payment of only 3.5 percent, while conventional loans require down payments of 10 percent or higher.

However, the products also are drawing some unfavorable comparisons to now-abolished subprime loans. Finance professionals, however, stress that unlike the infamous subprime mortgages of years past, FHA lenders go out of their way to verify income and ensure that they are not approving "liar loans."

Source: Palm Beach Post (Fla.), Jeff Ostrowski (03/16/09)

Richard Dreyfuss Makes His Encinitas House Earth-Friendly

Award-winning actor Richard Dreyfuss and his wife of three years, Svetlana, bought a 4,830-square-foot "fixer" house in Encinitas last year. They are now preparing to renovate the 1970s structure with state-of-the-art technologies to save energy and water.

San Diego Gas & Electric has chosen the innovative renovation project as one of three case studies so far for its countywide Advanced Home program.

With mud-colored shag carpeting, nondescript shingled roof and a too-small swimming pool partially full of green muck, it hardly qualifies as a dream house.

The Dreyfusses plan to strip it down to its studs and beams, then build it up with technology, such as computer-monitored solar panels and foil insulation, in the hope of generating its energy on site and minimizing water use.

Cutting the electric bill to zero won't be easy for a home that will include a new guesthouse, a trellis of grapevines and a Jacuzzi the size of a swimming pool with heated waterfalls.

There will be a two-story library for Dreyfuss'15,000-volume book collection, with a hidden panel leading to a secret room. The renovation also will add a master bedroom and bath, and private offices, making it a total of 6,000 square feet.

Click here for more.

SOURCE: San Diego Union-Tribune

Sales Up Big in 92126

Housing sales are improving significantly in key ZIP codes around the country where prices have moderated, according to information compiled for BusinessWeek.com by First American CoreLogic.ZIP codes in California, Florida, Arizona and Nevada dominated the list, but there were also ZIP codes on the top 25 most-improved sales list from the suburbs around Detroit and Minneapolis and in the metro areas of Atlanta and Chicago.Inventories are shrinking and prices are stabilizing in several markets, according to the survey. 92126, Mira Mesa, made the list.

Here are the top 10 ZIP codes with improved home sales:
94533, Fairfield, Calif. (Fresno)
92376, Rialto, Calif. (Riverside-San Bernardino-Ontario)
91342, Slymar, Calif. (Los Angeles-Long Beach-Santa Ana)
92126, San Diego, Calif.
33914, Cape Coral, Fla. (Fort Meyers)
93065, Simi Valley, Calif. (Oxnard-Thousand Oaks-Ventura)
95123, San Jose, Calif.
85379, Surprise, Ariz. (Phoenix-Mesa-Scottsdale)
93722, Fresno, Calif. (Madera)
95624, Elks Grove, Calif. (Sacramento-Arden-Arcade-Roseville)

Source: BusinessWeek.com, Prashant Gopal (03/05/2009)

Is it a good time to invest in apartments? Some industry leaders say YES!

Industry experts say consider investing in a duplex, triplex or small apartment building.

"Smaller units are typically older ... and during a downturn people prefer lower-quality properties with fewer amenities," says Hessam Nadji, managing director of research at real estate brokerage Marcus & Millichap.

Nadji also pointed out that young people are the most likely tenants in these older units and that segment of the population is growing. The baby boom peaked in the 1950s and those boomers’ children, born in the 1980s, are just going out on their own. While they have one of the highest unemployment rates now – 12 percent – they will likely be the first hired when the economy improves, says Reis Research Director Victor Calanog.Reis identifies San Diego and Sacramento as areas expecting strong growth, as well as San Antonio, Texas, and Fairfield County, Conn., a suburb of New York City.Nadji urged investors to buy now while prices are down.

"There is a good chance that if an investor waits for a recovery to materialize, they'll see prices go up again," Nadji says.

Source:
Investor’s Business Daily, Amy Reeves (02/26/2009)

Wall Street Journal: Renters are Losing their Edge on Homeowners

According to the Wall Street Journal, the relative cost of owning versus renting is swinging back in favor of homeownership in some U.S. markets, buoyed by several quarters of sharp declines in home prices.

At the height of the housing boom, as home prices surged, demand for rentals started to rise as the gap between owning and renting widened significantly. Even after the housing market soured, apartment demand grew as former homeowners became renters, allowing landlords to push healthy rent increases.

Now, after two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.

Over the past 18 years, after-tax mortgage payments have averaged 26% more than rent payments, according to Green Street Advisors, a real-estate consultancy based in Newport Beach, Calif. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. But by the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30-year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.

Click here for more.

Source: Wall Street Journal

Obama's Mortgage Plan Won't Help Many San Diego Homeowners

The Obama administration yesterday unveiled details of a $75 billion program to help borrowers avoid foreclosure, but some analysts say it will have little benefit for San Diego County and other U.S. communities that have been hit hardest by the mortgage-market meltdown.

The plan is designed to help households at risk of foreclosure to refinance or modify their loans to make mortgage payments more affordable. But in markets where prices have fallen sharply, tens of thousands of distressed homeowners won't qualify because their home values have fallen too far.

The foreclosure-prevention strategy “will benefit the people who probably need it the least,” said Dave McDonald, president of the San Diego County chapter of the California Association of Mortgage Brokers. “I don't think it will have much effect here. In other states, it will.”

One part of Obama's program offers refinancing to those who owe more than 80 percent of the value of their homes. Refinancing will be limited to loans guaranteed by government-controlled mortgage giants Freddie Mac and Fannie Mae, however. And homeowners are ineligible if their first mortgage exceeds 105 percent of their home's current market value.

A big share of San Diego County's housing stock falls into that category.

Click here for more.

SOURCE: San Diego Union-Tribune

End Is Nearing for Downtown’s High-Rise Condo Boom

More than a hundred new condo and apartment projects consisting of 11,300 units have been completed since 2001 in downtown San Diego. Now, only two are left to go.

Vantage Pointe, a 679-unit high-rise just below Cortez Hill, and Bayside at the Embarcadero, a 232-unit complex in the Columbia District, will be completed in the next few months.

Industry analysts expect that once these two projects are finished, no new residential towers will be built for three to four years.

“The soonest you can expect a new project completion downtown is 2012. But the likelihood of that is slim,” said Russ Valone, president and CEO of San Diego-based MarketPointe Realty Advisors, a consulting firm.

SOURCE: San Diego Business Journal

Bargain Hunters Send Home Sales Up

Home sales increased in Southern California for the seventh consecutive month in January, according to MDA DataQuick.

The real estate information provider, which is based in the University Towne Center area, reported Feb. 19 that eager buyers sought bargains attributed to abundant foreclosure properties and increased affordability with lower median prices.

Sales volume increased 35 percent in January, with 2,500 sales compared with 1,800 sales in January 2008.

DataQuick said sales of existing single-family houses reached record levels in Chula Vista and Lemon Grove as well as in Perris and Temecula in Riverside County.

The research firm also reported that many coastal communities have not benefited from the wave of bargain hunting that has boosted sales during the past few months. DataQuick reported below average sales in Del Mar and Encinitas.

SOURCE: San Diego Business Journal

6 Tips for Home Owners Who Turn Into Landlords

Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say.Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.

Here are key issues to consider:

• Set a fair rent. Setting the right price will make it more likely that a landlord will be able to keep the place rented.
• Understand landlord-tenant rules. Running afoul of landlord-tenant regulations and rules regarding security deposits can be costly.
• Screen applicants. Eliminating potential tenants who can’t pay or who won’t take care of the property is very important.
• Lay out the rules in a lease. Widely available sample leases can help. If you have questions, ask an attorney.
• Consider a property manager. Despite the expense, turning the job over to experts can help a landlord come out ahead.
• Talk to the condo association. If the property is a condominium, be prepared to deal with a host of regulations.

Source: The Washington Post, Renae Merle (02/28/2009)

The Coronado Islands--a Local Mystery

I stumbled upon this cool article from the San Diego Union-Tribune today about the Coronado Islands. You know the Coronado Islands...they are the islands that appear just west of San Diego, hovering on the horizon. But how much do you know about them? The truth is, pirates, ghosts, gamblers and rumrunners spice up the legend of the tiny Coronados. Pretty cool, huh?

The Coronados offer rugged scenery, spectacular wildlife and some of the Southwest's greatest yarns. The islands belong to Mexico, but they have been used by an entire United Nations of heroes, villains and eccentrics: Russian hunters, Chinese immigrants, Japanese divers, American rumrunners, assorted gamblers, a trigger-happy U.S. lieutenant and what must be Mexico's smallest naval detachment.

These characters share the aquatic stage with dolphins, whales, elephant seals, brown pelicans, cormorants, oyster catchers and boobies. A voyage to the Coronados is a journey into a realm that makes a habit of defying man and sheltering nature.

Click here for more.