Playoffs ?

Leave a comment

                                       Broker
                      Registered Investment Advisor
                                310.872.0778  cell 
                                310.684.3156  office       

 

              

                Where Integrity Meets Experience tm

                              www.pvbrokers.net

                        www.palosverdesrealtors.net

Palos Verdes Real Estate

January 23, 2011

Leave a comment

   

Is it time to buy Palos Verdes Real Estate ?

With rates at all-time lows and poised to rise, this is an ideal time to consider buying palos verdes real estate.  In recent years, buyers have continued to stay on the sidelines opting to attempt to catch the bottom of the real estate market.  This is a great strategy if these people can reach into their closet for a crystal ball or obtain Biff’s almanac from the Back to the Future movie.  We continue to believe,  as optimistic as we are about real estate as a long-term investment, there is no way to be able to find the bottom of any market. The fact remains that timing any market is a fools game. 

The reasons for this are two-fold.  Firstly, catching the bottom of any market, whether it is stocks, bonds, real estate, etc., has been attempted and failed by many of the World’s greatest financial minds.  Timing the bottom is part luck, part skill, and part divine intervention.  Market valuations tend to overshoot wildly on both the upside and downside as primal instincts of fear and greed take over the process.  The fear instinct is actually far more powerful, thusly, thrusting markets downward at a faster rate than they rise.  This dynamic has certainly been demonstrated in the real estate markets of the past few years.
The second element making it difficult to time the bottom, is the fact that there are many different factors at work that may be correlated or inversely correlated.  For example,usually, when interest rates rise, property values tend to fall.  As money becomes more expensive to borrow, property values come down to meet the decreased demand for housing.  People can no longer afford to finance at higher levels, therefore, forcing prices down.  However, in recent times, we have seen rates fall precipitously as home prices also fell dramatically forcing real estate foreclosures.  This, historically, doesn’t make much sense and violates some of the simple supply and demand theories.  The reason for this disconnect was that we entered into a period of disinflation which drove all prices and demand downward.  The experts were mixed on where the economy was headed and many were confused about how the markets were behaving.  This caused a flight to non-risky assets like bonds and precious metals.  In short, noone, including the experts, had a clue where we were headed next.  Now, one thing is certain, we will either have inflation, deflation, or little or no growth.  How’s that for a prediction !!

The Bottom Line

With today’s historically low rates and home prices in a 30-40 percent correction, it would be prudent to look to real estate as an attractive investment vehicle.  If you purchase now and interest rates rise due to inflation, your property value should increase and you will have a locked in rate lower than the market going forward.  If we get deflation, your property value may decrease but you will be able to refinance at lower rates in the future  All the while, you are receiving tax benefits from  writing off your mortgage interest.  In a low or no growth environment, you are being paid to wait.  In this case, interest rates and property values would remain flat and you will still be receiving mortgage interest tax benefits.  Sounds like a pretty good risk-reward scenario to us.

So whether you want to buy or sell palos verdes real estate please give us a call will any questions or comments.  You can also visit our website at http://www.pvbrokers.net to receive a comprehensive look at Palos Verdes Real Estate and search for properties and homes for sale.  Check out our new “mobile search” on our main menu from your iphone or android device. 

 

 

 

 

 

 

 

 

 

 

 

                                 Bart Cleveland
                                       Broker
                      Registered Investment Advisor
                                310.872.0778  cell 
                                310.684.3156  office       

 

              

                Where Integrity Meets Experience tm

                              www.pvbrokers.net

                        www.palosverdesrealtors.net

No McMansions for Millennials — Real Estate Trends

January 21, 2011

Leave a comment

By S. Mitra Kalita and Robbie Whelan, WSJ.com
Jan 14, 2011
Provided by: PV Brokers Residential Real Estate

 

No McMansions for Millennials

 

 

Here’s what Generation Y doesn’t want: formal living rooms, soaker bathtubs, dependence on a car.

In other words, they don’t want their parents’ homes.

Much of this week’s National Association of Home Builders conference has dwelled on the real estate needs of an aging baby boomer population. But their children actually represent an even larger demographic. An estimated 80 million people comprise the category known as “Gen Y,” youth born roughly between 1980 and the early 2000s. The boomers, meanwhile, boast 76 million.

Gen Y housing preferences are the subject of at least two panels at this week’s convention. A key finding: They want to walk everywhere. Surveys show that 13% carpool to work, while 7% walk, said Melina Duggal, a principal with Orlando-based real estate adviser RCLCO. A whopping 88% want to be in an urban setting, but since cities themselves can be so expensive, places with shopping, dining and transit will do just fine.

“One-third are willing to pay for the ability to walk,” Ms. Duggal said. “They don’t want to be in a cookie-cutter type of development. …The suburbs will need to evolve to be attractive to Gen Y.”

Outdoor space is important-but please, just a place to put the grill and have some friends over. Lawn-mowing not desired. Amenities such as fitness centers, game rooms and party rooms are important (“Is the room big enough to host a baby shower?” a millennial might think). “Outdoor fire pits,” suggested Tony Weremeichik of Canin Associates, an architecture firm in Orlando. “Consider designing outdoor spaces as if they were living rooms.”

Smaller rooms and fewer cavernous hallways to get everywhere, a bigger shower stall and skip the tub, he said. Oh, but don’t forget space in front of the television for the Wii, and space to eat meals while glued to the tube, because dinner parties and families gathered around the table are so last-Gen. And maybe a little nook in the laundry room for Rover’s bed?

In his presentation, KTGY Group residential designer David Senden showed slide after slide of dwellings that looked like a cross between a hotel lobby and the set of “Melrose Place.”

He christened the subset of the generation delaying marriage and family as “dawdlers.”

“A house in the suburbs is not for them,” Mr. Senden said. “At least not yet.”

Places to congregate are more important than a big apartment, he cautioned. He showed one layout of a studio apartment-350 square feet, as big as Mom and Dad’s Great Room. Common space has migrated to “club rooms,” he said, where Gen-Y residents can host meals and hang out before heading to a common movie-screening room or rooftop swimming pool that they share with the building’s other tenants.

The Great Recession and its effects on young people’s wages will affect how much home they can buy or rent for years to come.

“Not too many college grads can afford a lot of space in the city,” he said. “Think lots of amenities with little tiny units-and a lot of them to keep (fees) down. …The things these places are doing is constantly coordinating activities. The residents get to know each other and it makes for a much livelier and friendlier environment.”

PV Brokers provides residential real estate services for the Los Angeles County South Bay communities of Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Rolling Hills Estates, Rolling Hills, Redondo Beach, Hermosa Beach, Manhattan Beach, Torrance and San Pedro. As a boutique Realty, our agents and brokers are committed to giving our clients specialized service and attention.

 

 

 

 

 

 

 

 

 

 

 

                                 Bart Cleveland
                                       Broker
                      Registered Investment Advisor
                                310.872.0778  cell 
                                310.684.3156  office       

 

              

                Where Integrity Meets Experience tm

                              www.pvbrokers.net

                        www.palosverdesrealtors.net