Another spectacular 4th of July in Woodbridge!

Plans are underway for another spectacular 4th of July in Woodbridge!

Join your friends and neighbors for a day filled with activities, laughter, and excitement.

Wristbands are required for the many activities offered at the South Lake Beach Club on the 4th (volleyball tournament, carnival, bingo, swimming at the South Lake Beach Club, and boat races), but are not required for the Ralph J. Redington 5k/10k and Kids Run, and Wheels on Parade.

The run forms and wristbands are now on sale and available for purchase through the Association Office at 31 Creek Road.

There will be 3,000 wristbands available for purchase at $8.00 each and are sold on a first-come, first-serve basis to adult WVA members with proper Facility Identification.
Residents may purchase as many wristbands as they wish!

For more information regarding the 4th of July activities you can visit the Association website at http://www.wva.org/, and if you have any questions, please contact me at (949) 232-5634 or through my website here.

Why They Are Saying to Buy A Home Now?

The Price of a home versus the Cost of the home is often a calculation over looked. Our friends at Keeping Current Matters touch on this and bring 4 articles that all talk to the point that this is the time to buy. Why They Are Saying to Buy A Home Now?...

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home!

Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal:
Why It’s time to Buy

CBS Money Watch:
Why the Time to Buy is Now

Forbes Magazine:
9 Reasons to Buy a House Now

National Public Radio:
For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy.

Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home.

Here is some information to consider.

Interest Rates
Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards
The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

The qualification process for loans will become more difficult.

The cost of a loan will increase.

Bottom Line
There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

Should You Rent or Buy in this Market?

More good info on the rent vs. buying a home front from my friends at Keeping Current Matters. Get the facts and make a decision. Remember, loan limits look to be changing this fall.

Families are trying to determine whether or not now is the time to buy a home.

Some are advising these families to sit out the current real estate market and instead rent for the next year or two. I don't agree with this advice.

Homeownership means a lot to a family. I also realize that the financial aspects of purchasing a home today can be a concern. The challenge is any advice given by someone in the real estate community is immediately dismissed as self-serving.

For this reason, I want to give you the advice of three entities not involved in real estate sales:


Citigroup

“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”

JP Morgan

“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”

Business School professors Eli Beracha and Ken H. Johnson

“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…

Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer. Let's talk.