Arn Cenedella

First-time buyers – this may be your opportunity to buy!

Yes, the economy is weak and yes, we may not have seen the worst.

But if you feel your employment is secure, if you buy within your financial means, and if you wish to make the San Francisco Peninsula your home, this is a good time to buy.

Long-term, I think we can have confidence that the economy will recover and that our area will continue to be a major employment center.

Prices are down in many areas – especially the more affordable entry-level neighborhoods.

30 year fixed rates are around 5%.

The Senate has passed a proposal for a $15,000 tax credit for home buyers. This is promising. But I caution everyone that this is NOT LAW. The House and Senate will need to agree on the bill and we need to see the exact final form of the bill. Will there be income limits? The current $7500 credit has a $95,000 limit for individuals and a $150,000 limit for couples. Will the new bill contain income limits? This issue will make a big difference in our area.

This is all good but I would like to bring it down to a personal level.

Some former tenants of mine (Rick and Beth) moved to LA a few years ago. Rick and Beth now want to move back and I met with them on Saturday January 17 to look at homes in East Palo Alto and east Menlo Park. We looked at 5 homes and found a real cute 2 bedroom 1 bath at 2230 Poplar Ave. listed at $199,950.

There were several offers and Rick and Beth went above list price a little but we had seller – a bank – pay all their closing costs.

Their total cash outlay to purchase will be about $10,000 and their monthly payments will be $1255 loan, $50 for insurance, $234 property taxes, and $100 mortgage insurance – total monthly payment $1639 per month.

So $10,000 plus $1639 per month buys a 2 bedroom 1 bath single family home on a 5000sf lot.

This house has fresh paint, carpet, vinyl, and new windows.

So basically with little cash outlay (I mean it costs $4000 to move into an apartment around here) plus basically a rent payment, Rick and Beth will become homeowners.

I believe it is reasonable to assume that in 5 to 10 years, this house will be worth more than the $225,000 paid for it. Do you agree? And even if it isn’t, they will be owners instead of renters. They can fix the house and yard up the way they want and enjoy living in this house.

If East Palo Alto isn’t for you (my first home was in East Palo Alto, BTW), then there are other areas where you can buy single family homes for under $500,000.

A home just closed in White Oaks San Carlos where I have lived for 23 years for $680,000.

That is a great price!

So first-time buyers, get moving to take advantage of the current opportunities.

I am confident – if you buy now - in 5 years you will be grateful – you did. 

One of my favorite loan agents, Linda Lunsman of Princeton Capital, handled the loan for Rick and Beth. Linda helped get their offer accepted since she knew the listing agent and got Rick and Beth’s FHA 3.5% down loan approved in 8 working days.

Rick and Beth will be moving into their home before the end of the month. Trust me, they are ecstatic!

I have been in the real estate business since 1978 and I have plenty of professional contracts that help my clients in all aspects of a purchase or sale. These allied professionals would include several excellent lenders, contractors, inspectors, accountant, landscapers, painters, and flooring contractors. I also offer property management.

Contact me if you wish to get started in a low-key no-pressure but professional manner.

Get moving you will not regret it.

This entry was posted on Friday, February 6th, 2009 at 3:57 pm and is filed under East Palo Alto real estate, Foreclosures, Inspiration, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website