Pasadena Real Estate Blog

Pasadena Makes the top 5 LA County Destinations

With the real estate market going down in many areas, Pasadena Real Estate is remaining a top destination for many home buyer’s. The City of Roses has everything from entry level condos to multi-million dollar estates.

Diane Wedner from Los Angeles Times writes: It would seem that still-high prices and hard-to-get loans would keep people away from Southern California’s pricier areas. But they’re still coming. According to a recent NorthStar Moving Corp. survey of their customers’ moving requests from June ‘07 through May ‘08, nearly 2,000 of them transplanted to Los Angeles and Orange counties. And that’s just one moving company.

The top L.A. County destinations:

1) Los Angeles (city of)

2) Pasadena

3) Santa Monica

4) Marina del Rey and Woodland Hills (tied)

5) Long Beach

Pasadena Homes For Sale.

WHAT WOMEN WANT 

Breaking Records: Currently, single women buyers purchase 22 percent of new homes, compared to only 9 percent by single men. They purchased 1.5 million homes in 2005, which equates to one in five sales.

What they’re buying: Many single women harbor similar desires in homes. But others do go against the average. Here is a list of the common trends in home buying for single women:

· Prefer 2 bedrooms or more

· More likely to choose resales

· Buy in city over suburban areas

· Will not compromise on location or quality of neighborhood

· Prefer condos or townhomes with well run homeowner associations

· Desire security and / or gated access. Want close proximity to stores, shopping and fitness centers.

We have assisted many women home buyers in the purchase of houses to condos. To see more info about this topic visit our Single Women Buyers page on our website. There you will also see various testimonials from our satisfied clients.

Enjoy Fresh Local Fruits, Vegetables and Farm Products! If you have never been to Pasadena’s Farmers’ Market, you are in for a real treat. You’ll love the experience of buying directly from the farmer that grows the food. What you’ll love even more is the fresh, delicious taste of locally grown, nutritious fruits, vegetables and farm products. Their certified vendors only sell what they grow–or, to say it another way, they won’t sell you anything that they did not grow. You know where your food came from, and who grew it for you!

They also have other vendors offering jams, jellies, fish, and more, but we do not permit craft vendors. There are usually about 40 vendors at Victory Park on Saturdays. The market is cash only, and we accept EBT (Electronic Benefit Transfer). We are open rain or shine Saturdays 8:30am - 12:30pm Victory Park, Sierra Madre Blvd.

Search Pasadena Luxury Homes for sale or find a Luxury Pasadena Real Estate Agent.

Pasadena Gears Up For The City’s Inaugural Marathon

The city of Pasadena will be holding its first annual Pasadena Marathon on Sunday, the 16th of November, which will include a full 26.3 mile Marathon, Half Marathon, 5K, Bike Tour, and a 3.1 Mile Fun Run/Walk. Because of the range of events, the city and its sponsors for the event will be expecting a wide variety of participants from amateur to leading competitors. With all the sponsors lined up for the event and the route mapped out, the city is now calling for volunteers and has been accepting registrants since mid-summer. Those up for the run will be able to register until November 13th. The starting line will take place at the Rose Bowl, which will take participants through trails of the Arroyo Seco as well as through many sections of Pasadena through the boulevards, eventually ending back at the Rose Bowl.

The Pasadena Marathon has been organized by Pasadena Forward, a non-profit organization, and has been presented by Kaiser Permanente which stands as one of the many sponsors for the event. Pasadena forward was founded in 2004 by it’s executive director, Israel Estrada, with a mission statement that claims, “to promote an enhanced quality of life for those living, working, or attending school in the Pasadena area”. With the goals that Pasadena Forward has geared towards the city, organizing an event such as a Pasadena Marathon would seem ideal.

As a city that holds many various cultural and social events throughout the year, Pasadena has hopes that this inaugural Pasadena Marathon will be the first of many to come, as an annual event to add to their list of many proud achievements.

FOR SALE BY OWNER AKA FSBOWith over 6 months of inventory on the market, selling your home has been as difficult as it was in the 90’s. Many home owners are still trying to cut ends by putting their home “for sale by owner” aka FSBO.

FSBO’s have always been known as being the best deals by buyer’s because buyers feel that they are going to score a killer deal. To most people’s surprise, FSBO’s are actually way over priced! This is due to the fact that FSBO’s think that they know the market and feel that they can get more for their home than listing with a Pasadena Real Estate Agent. Over 90% of FSBO’s typically list with a professional listing agent. Now what does that tell you? Seller’s are not seller’s if they don’t have the tools and resources that a real estate professional has.

BUYER’S OF FSBO’S BEWARE…..

Since FSBO’s do not want a professional real estate agent involved, you have to trust that you are purchasing this home from an individual who has your best interest in mind. Have you ever seen a real estate purchase contract? California’s contract is the most complex of any state in the US. Furthermore, your deposit can be at jeopardy if you default in the purchase. The answer is simple if buying a FSBO, hire a Pasadena real estate agent who knows the market. Most seller’s will pay the buyer’s agents commission. If they don’t, be suspicious of what they are trying to hide since they don’t want a professional involved in the purchase.

To get an idea of the process involved in selling a Pasadena Home, visit http://www.soldbyramiro.com/ and go to the seller section. Here you will find many of the steps involved in the process of selling a home.

Considering there is a rise in Pasadena Short Sales and Pasadena REO’s, it is important to be competitive with the list price of the home. Homes that sell are ones that are comparable to homes currently on the market. Although appraiser’s use value based from six months prior, we are in a declining market with inventory that is changing daily. Thankfully, Pasadena Real Estate has not been affected as it has in other markets. This is mainly attributed to the city of Pasadena’s strength in preserving it’s architecture, night life, fabulous dining, many shopping districts, and the list goes on….

Pasadena South Lake Hot spot! I tried them all, and Cantaloop is the place to go for frozen yogurt. Not only is it delicious, but it only has few calories and fat free. Definitely the kind of treat worth replacing a meal with! The interior has a cool/trendy vibe and there is plenty of room to hang with friends and family. Make sure to check out the cool artwork on the walls. My personal choice is the banana flavored yogurt with Strawberries and Kiwi’s. By the way…. The colored sprinkles always make an easy topping selection. Before you go, get your frequent visitor card to get a free frozen yogurt because I guarantee you will be back for more! Cantaloop is located at 524 South Lake Avenue in Pasadena. For more information on flavors, toppings, and nutritional values visit http://www.cantaloopyogurt.com/ . Review by Ramiro Rivas, Pasadena Real Estate, Coldwell Banker.

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations. How to calculate gain in real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________ To calculate this, add the following: Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage. Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale. Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________ The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________Subtract the adjusted cost basis from the amount your home sells for to get your capital gain. A Special Real Estate Exemption for Capital Gains since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria: You have lived in the home as your principal residence for two out of the last five years. You have not sold or exchanged another home during the two years preceding the sale. You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

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Various client’s have discussed the housing bill signed into law two weeks ago. Below is a great summary. A few items will have a slight impact on housing. The biggest benefit is for borrowers that are in danger of foreclosing and first time home buyers. The FHA created a program which is a loan write down and shared equity participation with Uncle Sam for 50% of the future appreciation. My first economics teacher Dr.Lamb burned into our brains, that there is no such thing as a free lunch. Various elements of this bill bear that out. The bill is not sexy so I had to throw in a picture of Heidi Klum to liven things up. Enjoy your weekend.-Mr.Mortgage

Key provisions of the Act include:

New agency created to regulate Fannie Mae, Freddie Mac, and the Federal Home Loan Banks: The Act creates a new regulatory agency, called the Federal Housing Finance Agency, to oversee and regulate Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The agency is charged with the responsibility of monitoring the portfolio holdings of the entities it oversees and ensuring they maintain sufficient capital to operate healthy national housing finance markets.

FHA Program updated: Effective January 1, 2009, the FHA loan limit for conforming loans increases to as much as $625,500 in the most expensive U.S. markets. This affects both home equity conversion mortgages (reverse mortgages) and jumbo loans. Down payment requirements on FHA loans increase from 3 percent to 3.5 percent.

The Hope for Homeowners Program: The Act creates a new Federal Housing Authority (FHA) program designed to help borrowers in danger of losing their homes to foreclosure. Eligible homeowners may be able to pay off their original (foreclosing) lenders with a fixed-rate, 30-year-term mortgage for up to 90 percent of the appraised value of the property. Eligible homeowners are those who originated their loans before January 1, 2008, spend more than 31 percent of their monthly income on their mortgage, and are currently in danger of foreclosure. Borrowers would have to share future equity with the FHA. The program is completely voluntary; banks may elect not to participate. The program begins on October 1, 2008 and ends in September of 2011.

Temporary mortgage foreclosure protection for servicemembers: The Act provides mortgage foreclosure protection for members of the U.S. Armed Services by temporarily increasing (through December 31, 2008) the maximum loan guarantee for VA loans. The period a lender must wait before initiating foreclosure proceedings after a service member returns from service is extended from 90 days to 9 months. Increases in mortgage interest rates above 6 percent are suspended during the period of service and for one year after a service member ends service. This provision will sunset on January 1, 2011.

Temporary tax “credit” for first-time homebuyers: First-time homebuyers of a principal residence purchased after April 8, 2008 and before July 1, 2009 may take a refundable tax credit of 10 percent (up to a maximum of $7,500; $3,750 for married persons filing separate returns) of the purchase price of the property. The credit is phased out for individual taxpayers with adjusted gross incomes (AGIs) ranging from $75,000 to $95,000 ($150,000 to $170,000 if married filing jointly). However, taxpayers must repay the credit taken over 15 years in equal installments as a surcharge on their annual income tax return.

Temporary standard property tax deduction for non-itemizers: For 2008 only, taxpayers who do not itemize their deductions will be allowed to take a real property tax standard deduction (in addition to the standard deduction) of up to $1,000 if married filing jointly ($500 for all other filers).

Reduced homesale exclusion for nonqualified use: For sales and exchanges of a principal residence after December 31, 2008, the $250,000 ($500,000 if married filing jointly) homesale exclusion won’t apply to the extent the gain is allocated to periods (not including any period before January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse.

Temporary increase in low-income housing credit: For 2008 and 2009 only, the Act provides a 20 cent increase in the low-income housing credit per-resident cap, and increases the small state minimum by 10 percent. The technical rules relating to the credit have also been simplified.

Expansion of the rehabilitation tax credit: The Act taxpayers to qualify for the full amount of the rehabilitation credit so long as less than 50 percent (up from 35 percent) of the rehabilitated building is leased to state and local governments or other tax-exempt entities.

Repeal of AMT limitations: on tax-exempt housing bonds, low-income housing credit, and rehabilitation tax credit. Generally effective after December 31, 2007, interest on tax-exempt housing bonds are not subject to the alternative minimum tax (AMT), and the low-income housing credit and rehabilitation tax credit can be used to offset AMT liability.

REIT modernization: The Act liberalizes the rules for real estate investment trusts (REITs) by clarifying that they can earn foreign currency income associated with real estate activities, increasing the permissible size of REIT investments in taxable REIT subsidiaries, modifying the REIT safe harbor for dealer sales, and extending the special rules for lodging facilities to health care facilities.

Election to accelerate recognition of historic AMT/R&D credits: The Act allows taxpayers to elect to accelerate the recognition of a portion of their historic AMT or research and development (R&D) credits in lieu of the bonus depreciation tax benefit allowed under the Economic Stimulus Act of 2008. The amount taxpayers can receive is calculated based on the amount invested in property that would otherwise qualify for said bonus depreciation. This amount is capped at the lesser of 6 percent of historic AMT and R&D credits or $30 million.

With so many great opportunities to buy a home in every price range, does moving up make sense? These questions will help you decide whether you’re ready for a home that’s llarger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district. Find a Pasadena Real Estate Agent who can help.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are you able to secure an attractive interest rate? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer. Search for mortgage rates.

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Why are you renting……when you could be a home owner ?

Why You Should Buy a Home Now These days there is literally too much information for homebuyers to make a decision sometimes. Fear can prevent first time home buyers from ever acting on their dream of home ownership. When you look at facts, though, buying a home makes as much sense now as it ever has. With home prices going down now in some markets, the question is beginning to surface more often, “Is now a good time to buy?. If there’s any risk that it may go down in value, why, really should anyone buy a home instead of renting?” It may be true that renting is cheaper than buying right now, but historically speaking, it is only a matter of time before rents will go up. They always have, and they always will. That brings us to the number one reason to buy a home, which is the very reason rent always goes up:Appreciation or Rising Values - For most Americans, buying a home is one of the smartest financial decisions they will ever make. Look at the difference in net worth between homeowners and renters according to the Federal Reserve:The difference in net worth of homeowners vs. renters is more pronounced as income rises. The average American who earns $60,000 per year and rents has a net worth of only $25,000. The average net worth of that same earner who is a homeowner is nearly $300,000!There are two main reasons this happens. First, there is the “forced savings” aspect of home ownership. As payments are made on a home over time, the balance of the mortgage will obviously fall. This is essentially “forcing” a monthly savings that is the portion of the payment that applies toward the principal amount of the mortgage. Secondly, there is long-term property appreciation. Homes have always gone up in value over time, even though there are bound to be some down cycles. Long-term home ownership almost guarantees a higher net worth. Pride of Ownership - Most homeowners will admit they like owning a home because they don’t have to ask before they do anything to the home. They can paint it any color, they can add a new front door, change the shutters, and they have the right to do it because it’s their home! This is the reason most people take care of a home they own better than one they rent. Plus, no landlord can go up on your rent or terminate a lease and force you to move. It makes a difference when applying for credit, in personal relationships, and possibly even in employment considerations. Pride of ownership is hard to measure in terms of money, but is a big part of why people will always want to own their home.

Tax Benefits - Arguably, tax benefits of home ownership are not as great as many owners understand them to be, but most do benefit from the mortgage interest deduction, even if in a small way. Home ownership has been a part of our heritage, and represents the largest part of the average American’s net worth. There is a good chance that owning and paying for a home is the only way some people will be able to retire. And the earlier you can get in the game of ownership, the better off you will be sooner in life. Owning a home is not only still the “American Dream”, it is an important part of our national economy. The financial benefits can easily be seen and experienced over the long run. The other benefits, while not so easy to measure, may be the most important ones. Buying your first home, even in a “down” market is still a wise choice, and will eventually be one of the best financial decisions of your life. Search Pasadena Homes and Pasadena condos for sale. Find a Pasadena Real Estate agent.