Here's a shocker...take your present age and subtract it from 67.
(Mine is 67 - 47 = 20 years)
That means I have 20 years left until retirement age - what's yours? To most Americans, amazingly - even if you DON'T have a dime saved right now - you can easily retire wealthy if you can just start a monthly savings/investment plan now! Here's all you need to save per month to become a millionaire in 20 years...
Savings start date: 7-1-2008
Balance on start date: $0
Number of years to save: 20
Rate of return: 8%
To earn: $250,000 You will need to save (deposit) $425 per month.
To earn: $500,000 You will need to save (deposit) $960 per month.
To earn: $1,000,000 You will need to save (deposit) $1,920 per month.
No matter what or how weak/bad your current savings plan is - this clearly shows that you can earn a half-million by merely depositing $960 a month and earning an 8% return for 20 years! Most people will also pay off their houses, helping them earn an additional $175,000 to $300,000 (national averages.)
Most Americans can trim their current budgets NOW and begin a savings program to deposit that amount...especially couples. Don't forget...
At retirement age, around 67 years old - you can live off of your interest profit (assume 10%) which is $50,000 a year (or $4166 a month,) without touching your $500,000 principle amount. By retirement age, you should have a house paid off and relatively 'little' to no credit card debt or car payments - making $4166 a very nice monthly living until they throw dirt on you! Many people, however, will simply NOT be able to set aside any money for retirement - and will have to rely SOLELY on Social Security. In my opinion, I don't think Social Security will be solvent or even available in 20-25 years...so you better start saving now! Or, stop renting and buy Denver real estate, Littleton real estate - or Highlands Ranch homes for sale!
With all the "doom & gloom" right now with our U.S. economy, it's really NOT that bad after all - as most people can put aside $425 a month and earn a quarter of a million dollars in 20 years. Or you might think about accelerating paying off your present mortgage faster - if you plan on living in your present house forever. Read more on that here - as you can easily pay off your present home loan in 5-12 years... http://www.jeffboyce.net/home-ownership-accelerator-loan-.html
Showing posts with label us housing market. Show all posts
Showing posts with label us housing market. Show all posts
Friday, June 13, 2008
Wednesday, June 4, 2008
Why Do Littleton and Highlands Ranch Real Estate Sellers NOT Allow Showings?
It's an amazing phenomenon - but even in a buyers market (where frustrated Sellers have a hard time getting showings and good purchase offers, and where most houses take 3-9 months to sell) - that there are still so many INSANE and outright 'stupid' Sellers who will not accommodate Buyers to show their homes!!!
Can you imagine the 'stupidity' of a Sellers who demands that the Buyer accommodate them, and will decline showings to possibly sell their house - not unless the buyer can come at a later time, or the next day?
NOTE TO ALL HOME SELLERS: Please do NOT ever turn a potential buyer away from seeing your house, no matter how bad the home looks, no matter how many dirty dishes are in the sink - or how tired you are or if your dinner was interrupted...
In the last 2 days, I have had a Buyer in from Oregon who only has 3 days to find and get a house under contract - and who has been DECLINED 6 showings on homes she really wanted to see! Those 6 houses have a 100% probability that she will NOT buy them...and the Sellers and their real estate listing agents should win awards for 'stupidity'!!! Three other Sellers made it very difficult for us to see their homes, but because our schedule had some time open - I went out of my way to drive back to see those homes. Of those 3 homes, my Buyer way not very pleased with the "stupidity of those sellers" and was irritated enough, that she had 'tainted' views of the Sellers homes before we even went in them - she was psychologically stigmatized to my Buyer before we even walked in the house!
After looking at Highlands Ranch homes for sale, Littleton real estate and southeast Denver homes for sale for 2 days with my Buyer - let me give ALL home Sellers and your listing agents some GREAT ADVICE:
1. When a car is parked outside of your home, and a Realtor calls your office to show your home - please DO NOT BE STUPID and say you're too busy or preoccupied to have a showing!
2. When you mandate your showing instructions for "24 hours notice to show"... I'll BET YOU $100 that your house takes 4-9 months to sell - and you get a FAR LOWER price that you 'thought' you'd get!
3. Buyers MUST see the inside of your house to "make up their minds" if they want to buy & live in a house like yours - so PLEASE be accommodating to ALL showing requests! Most showings only take less than 10 minutes...so can't you just walk around the block, sit quietly out on the patio/deck - or go drive and get some milk & eggs at the grocery store - while I try and SELL YOUR HOUSE!!!
4. If you don't like cleaning and home maintenance - then PLEASE hire a professional cleaning company like Merry Maids to clean your house and shampoo your carpet - especially trying to get out all the pet odors (...that you must enjoy smelling?) Hire Handyman Connections to fix all your broken stuff in the house - so it actually looks like you "cared" about your house for the last 5 years living there!!!
The MORAL of this story for all you Denver Realtors and home sellers is this...
I can't sell your house if my buyers can't see the inside of it right NOW - when WE WANT TO SEE IT!!! Did you forget that the term "buyers" means we want to actually buy a house like yours???
Right now, I'm "wondering" if our US housing crisis and glut of too many homes for sale is NOT a component of our economy - but instead, is a component of SHEER STUPIDITY on sellers and listing agents...
Can you imagine the 'stupidity' of a Sellers who demands that the Buyer accommodate them, and will decline showings to possibly sell their house - not unless the buyer can come at a later time, or the next day?
NOTE TO ALL HOME SELLERS: Please do NOT ever turn a potential buyer away from seeing your house, no matter how bad the home looks, no matter how many dirty dishes are in the sink - or how tired you are or if your dinner was interrupted...
In the last 2 days, I have had a Buyer in from Oregon who only has 3 days to find and get a house under contract - and who has been DECLINED 6 showings on homes she really wanted to see! Those 6 houses have a 100% probability that she will NOT buy them...and the Sellers and their real estate listing agents should win awards for 'stupidity'!!! Three other Sellers made it very difficult for us to see their homes, but because our schedule had some time open - I went out of my way to drive back to see those homes. Of those 3 homes, my Buyer way not very pleased with the "stupidity of those sellers" and was irritated enough, that she had 'tainted' views of the Sellers homes before we even went in them - she was psychologically stigmatized to my Buyer before we even walked in the house!
After looking at Highlands Ranch homes for sale, Littleton real estate and southeast Denver homes for sale for 2 days with my Buyer - let me give ALL home Sellers and your listing agents some GREAT ADVICE:
1. When a car is parked outside of your home, and a Realtor calls your office to show your home - please DO NOT BE STUPID and say you're too busy or preoccupied to have a showing!
2. When you mandate your showing instructions for "24 hours notice to show"... I'll BET YOU $100 that your house takes 4-9 months to sell - and you get a FAR LOWER price that you 'thought' you'd get!
3. Buyers MUST see the inside of your house to "make up their minds" if they want to buy & live in a house like yours - so PLEASE be accommodating to ALL showing requests! Most showings only take less than 10 minutes...so can't you just walk around the block, sit quietly out on the patio/deck - or go drive and get some milk & eggs at the grocery store - while I try and SELL YOUR HOUSE!!!
4. If you don't like cleaning and home maintenance - then PLEASE hire a professional cleaning company like Merry Maids to clean your house and shampoo your carpet - especially trying to get out all the pet odors (...that you must enjoy smelling?) Hire Handyman Connections to fix all your broken stuff in the house - so it actually looks like you "cared" about your house for the last 5 years living there!!!
The MORAL of this story for all you Denver Realtors and home sellers is this...
I can't sell your house if my buyers can't see the inside of it right NOW - when WE WANT TO SEE IT!!! Did you forget that the term "buyers" means we want to actually buy a house like yours???
Right now, I'm "wondering" if our US housing crisis and glut of too many homes for sale is NOT a component of our economy - but instead, is a component of SHEER STUPIDITY on sellers and listing agents...
Wednesday, May 14, 2008
A Home Buyers Worst Nightmare - (Your Car!)
Why in the world do homebuyers in the Denver, Highlands Ranch and Littleton real estate market actually worry about if the house they "might buy" is going to go up in value or down in value over the next two years?
After all, no one really seems to care that when you drive off the auto dealers parking lot the car you just bought over the next five years will depreciate down to about $8,000-$10,000 in value!
And, worse yet - you probably don't even have a 401(k), but if you did - you probably lost 25% of the value over the last two years!
So why is everyone crying about trying to get the world's best deal on a house if you are renting right now?If you're a renter right now, you'll most likely spend four to five hours over the next month trying to get the world's best mortgage loan if you do decide to buy Littleton homes for sale or a home somewhere else in the Denver real estate market. You might even get an extra 1/8 or .25 point lower by shopping different lenders - and playing one lender off the other to get the world's best mortgage deal and lowest closing costs (if you have good or excellent credit.) But at the same time, your cars are depreciating at 15% a year, and you're NOT saving a minimum of 10% of your paycheck every month in a 401k! Am I missing something here? A $30,000 car loan at 7% financed over 5 years, cost you $595 every month, which means you're paying $7,140 a year for that car to lose $4,000 every year in depreciated value! Yes - you're LOSING $11,140!!! What part of "LOSING" don't you understand...?
At what point in time in your life does your car AND your car payment mean more to you than owning a house after 30 years. Instead of waiting until you are 50 years old to start saving your first dime for retirement - why not start now by buying a house instead? The US Government will write you a check for 28-33% of all your home mortgage interest & property taxes if you'll just buy a house instead of renting - which means your $1500 principle & interest payment at 6% on a $250,000 house ACTUALLY ONLY costs you $1005 - since the IRS will let you change your W4's at work and give yourself this $495 tax break every month!
Does your auto loan send you any money every month?
If you stay in this house for 30 years - you'll own a $250,000 free and clear - if it doesn't appreciate one damn dime!
How else are you going to save $250,000 - with your 401k you're going to open (finally) in 10 years?
If you lived in your house for 5 years - and it DID NOT appreciate 1 penny - you'd only owe $232,300 on the loan, after paying down the principle $17,000. But, you would have received $495 in monthly tax write-off benefits too...or $495 x 60 months = $29,700. So in reality, using REAL numbers, you'd make $29,700 + $17,700 ($250,000 - $232,300) = $47,400 as a "real estate investor" - instead of renting!!!
Is home buying such a bad thing to do now?
The only real nightmare is your dumb car payment!!!
Saturday, May 3, 2008
Will "Fence-Sitting" Dominate the 2008 US Housing Market?
Is it smart to be a "fence-sitter" in 2008 if you are confused about whether you should buy a home - or to rent a house instead? This Realtor thinks that it's actually a pretty simple choice...
The issue facing so many American now, is if they'll get 'burned' financially buying now - as opposed to renting instead. But, in order to break down that decision to see if it's a sound decision - we must examine 2 key components. The first one is how much does rent cost you per month for the same equivalent lifestyle and home size? In certain parts of the country, renting is a very expensive way to live - and monthly rent costs a lot.
The biggest factor on this decision too, is that paying rent gives you NO tax write-off, where as 86-88% of a house payment & property taxes are tax deductable (86%-88% represents the interest portion of a 30 year fixed loan plus the property tax deduction during the first few years of amortizing). So your monthly interest deduction would be $1243 + 100% of your monthly tax bill; lets use $225 a month, which equals $1468. The rough way to figure this is to multiply $1468 by your .28 or .33 tax bracket (normally done on a Schedule A) which is $411 at 28% and $484 at a 33% tax bracket. These are the 'real' cost comparisons the US Government allows you every month to buy a house - and multiply them by 12 months to get $4,938 and $5,808 respectfully.
Another way to think of this - is like this: buying a house for the same or similar rent payment means that your house could "depreciate" $4,938 to $5,808 a year and you'd still break even!
The second comparison to fence-sitting and renting; to home buying, is that factor on "how long" you think you'll be living in the house or area, until you'll need a bigger or smaller house - or a job change might require you to sell?
This is actually the 'hardest' factor to consider...as no one can predict the future! If you are going to live in a house or rent for just a few years, I can tell you that the real estate commissions to sell a $250,000 house will be about $12,500 at 5% and $15,000 at 6%. If you home will NOT appreciate at these amounts, then you must factor in this expense into your rent vs home buying decision. Plus, the home might take 3-8 months (or longer!) to sell. But conversely, you'd be locked into a rental lease, and depending on when you needed to move, you might still owe 3, 6 or 9 months MORE on the lease you'd need to break!
This is the "X factor" that makes this renting vs home buying decision so hard! And - it's why fence sitting is so popular, as most people relate to making "no decision" as their typical process 9 out of 10 times, typically.
Then, look at buying a home which gives you the extra freedom & "peace of mind" knowing you control your destiny and have the joy of home ownership. You can paint, decorate and design the home anyway you want it! You lose all that freedom by renting. You can also pick the neighborhoods that you feel that 'matches' your socio-economic status - or feeds into a certain school(s) for your kids, or is closer to work or recreation opportunities. Finding a rental apartment or house in the same area might be tough or impossible...and most people 'clearly' state that they feel much worse about themselves when they are renting. The personal pride factor goes down significantly when you rent. Homeownership is a very 'powerful feeling' once you've been a homeowner before!
In conclusion, it appears that the real decision to fence-sit or to buy a home will still be dominated by "indecision" in 2008 - as most buyers will NOT commit to a decision - because no one can clearly see the real estate market booming and growing again, anytime soon. My guess is that the home rental business will be very strong for at least another year - or longer...
The issue facing so many American now, is if they'll get 'burned' financially buying now - as opposed to renting instead. But, in order to break down that decision to see if it's a sound decision - we must examine 2 key components. The first one is how much does rent cost you per month for the same equivalent lifestyle and home size? In certain parts of the country, renting is a very expensive way to live - and monthly rent costs a lot.
The biggest factor on this decision too, is that paying rent gives you NO tax write-off, where as 86-88% of a house payment & property taxes are tax deductable (86%-88% represents the interest portion of a 30 year fixed loan plus the property tax deduction during the first few years of amortizing). So your monthly interest deduction would be $1243 + 100% of your monthly tax bill; lets use $225 a month, which equals $1468. The rough way to figure this is to multiply $1468 by your .28 or .33 tax bracket (normally done on a Schedule A) which is $411 at 28% and $484 at a 33% tax bracket. These are the 'real' cost comparisons the US Government allows you every month to buy a house - and multiply them by 12 months to get $4,938 and $5,808 respectfully.
Another way to think of this - is like this: buying a house for the same or similar rent payment means that your house could "depreciate" $4,938 to $5,808 a year and you'd still break even!
The second comparison to fence-sitting and renting; to home buying, is that factor on "how long" you think you'll be living in the house or area, until you'll need a bigger or smaller house - or a job change might require you to sell?
This is actually the 'hardest' factor to consider...as no one can predict the future! If you are going to live in a house or rent for just a few years, I can tell you that the real estate commissions to sell a $250,000 house will be about $12,500 at 5% and $15,000 at 6%. If you home will NOT appreciate at these amounts, then you must factor in this expense into your rent vs home buying decision. Plus, the home might take 3-8 months (or longer!) to sell. But conversely, you'd be locked into a rental lease, and depending on when you needed to move, you might still owe 3, 6 or 9 months MORE on the lease you'd need to break!
This is the "X factor" that makes this renting vs home buying decision so hard! And - it's why fence sitting is so popular, as most people relate to making "no decision" as their typical process 9 out of 10 times, typically.
Then, look at buying a home which gives you the extra freedom & "peace of mind" knowing you control your destiny and have the joy of home ownership. You can paint, decorate and design the home anyway you want it! You lose all that freedom by renting. You can also pick the neighborhoods that you feel that 'matches' your socio-economic status - or feeds into a certain school(s) for your kids, or is closer to work or recreation opportunities. Finding a rental apartment or house in the same area might be tough or impossible...and most people 'clearly' state that they feel much worse about themselves when they are renting. The personal pride factor goes down significantly when you rent. Homeownership is a very 'powerful feeling' once you've been a homeowner before!
In conclusion, it appears that the real decision to fence-sit or to buy a home will still be dominated by "indecision" in 2008 - as most buyers will NOT commit to a decision - because no one can clearly see the real estate market booming and growing again, anytime soon. My guess is that the home rental business will be very strong for at least another year - or longer...
Friday, May 2, 2008
What is the HOME OWNERSHIP ACCELERATOR Loan?
Is the HOME OWNERSHIP ACCELERATOR Loan the best loan in the United States today - and should you consider using it - to buy or refinance your home?
There is a new mortgage loan available in Denver Colorado (and 41 other states) that combines the effectiveness of a 15 year mortgage loan - combines it with a home equity line of credit on your home - and then combines it with your checking account...so that you can PAY OFF YOUR HOME IN 6-12 YEARS on average!!!
The HOME OWNERSHIP ACCELERATOR Loan compounds interest DAILY, and can permit you to buy or refi a home - yet pay the home off in 5-12 years, without you having to pay extra monthly payments, or have HIGHER monthly payments, or having to do Bi-Weekly or other strict payment rules!!! You can use the existing equity in your home (at any time) to pay bills and borrow money against - anytime YOU want to...with NO strict rules and NO pre-pay penalties!
The loan is perfect for financially savvy home buyers, Jumbo buyers AND older borrowers who want to pay off their home much faster - yet without all the extra payments and double or triple monthly payments.
The loan requires a 15% down payment on purchase loans in Colorado, a 680+ mid-fico score, and 'decent' reserve accounts like your 401k, investments/stocks and IRA's. The loan is actually a Home Equity Line of Credit at 85% LTV, allowing you the freedom to use your equity at any time, but combining it with your checking/saving accounts - so that all your paychecks can be used to REDUCE your average daily mortgage principle & other debts. You deposit your entire paychecks into this innovative loan, and dramatically reduce your mortgage principle balance. If you are a buyer or borrower with a very good monthly cash flow (you 'bank' a large portion of your paychecks without spending most of the money) you'll be able to rapidly reduce your mortgage loan balance...and I can show you how to pay off your home loan in 6-12 years on average - WITHOUT you changing your current spending habits.
Sound too good to be true? It's not...
The loan is very popular overseas in England, Australia and South Africa - as it makes your checking account work for you - instead of the banks keeping all your checking/savings account interest!
Watch the HOME OWNERSHIP ACCELERATOR Loan video - or call me for a better explanation on how you can pay off your Denver or other home in 5-8 years! This loan is amazing, because it compounds interest daily - NOT monthly like traditional loans. It also let's you use your checking account and savings account balances to pay down your mortgage loan - without you actually prepaying on your loan! For example, if you paid your $600,000 home down to $300,000 after a few years - you have the freedom to take out the $210,000 equity (up to 85%) to invest in a stock or mutual fund, buy a car for cash, pay for your kids college expenses - or start a new business. It's YOUR MONEY that you can access whenever you want to...you just write yourself a check!
It's more cost effective than a Reverse Mortgage for seniors (you never have to give the bank 60-90% of your house!) and it's also perfect for Baby Boomers with good incomes trying to pay off their homes faster...but who don't like being "locked into" 15 year notes and no capability to get the equity out fast - if you have an emergency and can't wait to refinance. This loan IS ALREADY a home equity loan...so you can get any of your money out at anytime by writing a check or by using your VISA debit card.
Decide for yourself - would you like to buy a home next month and have it paid off in 5-10 years WITHOUT having to double or triple your monthly house payments?
This is the MOST AMAZING loan this mortgage lender and Realtor has ever seen - email me what you think of it!!!
There is a new mortgage loan available in Denver Colorado (and 41 other states) that combines the effectiveness of a 15 year mortgage loan - combines it with a home equity line of credit on your home - and then combines it with your checking account...so that you can PAY OFF YOUR HOME IN 6-12 YEARS on average!!!
The HOME OWNERSHIP ACCELERATOR Loan compounds interest DAILY, and can permit you to buy or refi a home - yet pay the home off in 5-12 years, without you having to pay extra monthly payments, or have HIGHER monthly payments, or having to do Bi-Weekly or other strict payment rules!!! You can use the existing equity in your home (at any time) to pay bills and borrow money against - anytime YOU want to...with NO strict rules and NO pre-pay penalties!
The loan is perfect for financially savvy home buyers, Jumbo buyers AND older borrowers who want to pay off their home much faster - yet without all the extra payments and double or triple monthly payments.
The loan requires a 15% down payment on purchase loans in Colorado, a 680+ mid-fico score, and 'decent' reserve accounts like your 401k, investments/stocks and IRA's. The loan is actually a Home Equity Line of Credit at 85% LTV, allowing you the freedom to use your equity at any time, but combining it with your checking/saving accounts - so that all your paychecks can be used to REDUCE your average daily mortgage principle & other debts. You deposit your entire paychecks into this innovative loan, and dramatically reduce your mortgage principle balance. If you are a buyer or borrower with a very good monthly cash flow (you 'bank' a large portion of your paychecks without spending most of the money) you'll be able to rapidly reduce your mortgage loan balance...and I can show you how to pay off your home loan in 6-12 years on average - WITHOUT you changing your current spending habits.
Sound too good to be true? It's not...
The loan is very popular overseas in England, Australia and South Africa - as it makes your checking account work for you - instead of the banks keeping all your checking/savings account interest!
Watch the HOME OWNERSHIP ACCELERATOR Loan video - or call me for a better explanation on how you can pay off your Denver or other home in 5-8 years! This loan is amazing, because it compounds interest daily - NOT monthly like traditional loans. It also let's you use your checking account and savings account balances to pay down your mortgage loan - without you actually prepaying on your loan! For example, if you paid your $600,000 home down to $300,000 after a few years - you have the freedom to take out the $210,000 equity (up to 85%) to invest in a stock or mutual fund, buy a car for cash, pay for your kids college expenses - or start a new business. It's YOUR MONEY that you can access whenever you want to...you just write yourself a check!
It's more cost effective than a Reverse Mortgage for seniors (you never have to give the bank 60-90% of your house!) and it's also perfect for Baby Boomers with good incomes trying to pay off their homes faster...but who don't like being "locked into" 15 year notes and no capability to get the equity out fast - if you have an emergency and can't wait to refinance. This loan IS ALREADY a home equity loan...so you can get any of your money out at anytime by writing a check or by using your VISA debit card.
Decide for yourself - would you like to buy a home next month and have it paid off in 5-10 years WITHOUT having to double or triple your monthly house payments?
This is the MOST AMAZING loan this mortgage lender and Realtor has ever seen - email me what you think of it!!!
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