The Benefits of Buying Rental Property

If you are looking for a way to bring in some extra income, investing in rental property can be very lucrative if you know what you are doing. The mantra of realtors everywhere is "Location! Location! Location!" and this is especially important when looking for your rental property. There are several types of renters in the La Jolla/ UTC area and the demand is abundant. West of the I-5, in La Jolla proper, the property values are a little higher due to the close proximity to the beach, low crime rate, and upscale environment. East of the I-5, in UTC (University Town Center) aka the "Golden Triangle", there is the University of California San Diego, Qualcomm, similarly low crime rate, close proximity to the beach and easy access to the heart of San Diego. If you are considering purchasing a rental in La Jolla proper, keep in mind that a one or two bedroom property could be utilized as a long term rental or a vacation rental. University Town Center has many one, two, and three bedroom condominiums that are in high demand which enables any investor to make a lucrative profit. Another important detail is to ensure that the property you invest in is thoroughly inspected and that there are no major defects.

If you would like information about investment properties available in the San Diego area and for assistance with any of your  real estate needs contact Kristin Benedetti at Berkshire Hathaway HomeServices 1299 Prospect St. La Jolla, California 92037, BRE # Lic 01946447 , Cell: 858-900-5578, lajollaluxuryhomes@outlook.com , www.lajollaluxuryhomefinder.com.   I can also provide you with referrals to reputable contractors throughout Southern California, if you need any help with home improvements. To get pre-qualified or if you have any questions about financing, please contact HomeServices Lending, an affiliate of Wells Fargo Home Mortgage at (858) 436-3483. 

Some of the Best Valentine's Day Deals in San Diego

Single? Dating? Married? Here are some fabulous ways to enjoy Valentine's Day in the land I love..

1) Estancia, La Jolla Valentine's Dinner
Friday, February 14, 2014
Adobe El Restaurante
Crush on a delectable Three Course Prix Fixe Valentine’s Dinner designed by Executive Chef Kimberley Kramer. Adobe sets the stage for exceptional San Diego dining on this very special day. Available on Friday, February 14th only.
Please call Angela Sclafani at 858.964.6521 to make your reservations today.
*Reservations are required. $75 per guest, includes two glasses of sparkling wine. Tax and gratuity not included. A credit card is required to hold the reservation, 48-hour cancellation policy.
Romance & Rendezvous Package includes your choice of Guest Room or Suite accommodations, complimentary valet parking, Sparkling Wine & fresh berries upon arrival, a Couples Massage (50 minutes), and breakfast for two at Adobe El Restaurante or in-room dining, discounts for AAA and Costco members

2)Addison at the Grand Del Mar
This Valentine's Day, fall in love again and again with seven irresistible courses! 5:30 pm - 10:00 pm. $205 per person or $325 with wine pairings

3)Athens Market Taverna, SD Gaslamp District
Come celebrate a day of love with a special three course menu from $28 to $45 per person! Entree choices include lamb, chicken, salmon, Greek combo, prime NY steak and more.

4) For a particularly wild Valentine's Day, Singles Soiree at Envy  at 10pm

5)Unlock the Night at the Tilted Kilt 310 10th St. San Diego, CA , singles 25-44
We start your night out right, getting unlocked. Men get keys, women get locks.  Come out to meet new people, make new friends and just have an incredible evening.
Mingle, network, meet someone special, win prizes, stay after and dance
Register at www.vipsocialevents.com

6) Double Tree Mission Valley, Grand Ballroom, 8pm, $12 admission, full bar, 40+ singles

What Improvements Give the Most Bang For Your Buck

When getting ready to sell your lovely home, the six key area's to focus on home improvement upgrades are the kitchen, bathroom, flooring, paint, and exterior touches to enhance curb appeal, and major systems (a/c, roof, plumbing, electrical, etc.). Start by having your home inspected to ensure that nothing out of the ordinary needs to be fixed like a leaky roof, electrical, or plumbing issues. If your home is still under warranty, a/c, plumbing and electrical issues are likely covered. Some major investments like installing an over-the -top wood fired oven, may not increase the value of your home but would provide a major selling point so carefully consider vanity upgrades. Here are some tips to get the most out of your home improvements.

1) The kitchen is considered the heart of the home, so splurge on staining, painting or replacing old cabinets, updating fixtures, replace vinyl flooring and upgrade the countertops. If other home's on the market of similar value have marble or quartz countertops, then yours should, too. There are less expensive options that look great and will add value. Replace old vinyl flooring with tile, stone or laminate. Update all fixtures and if you can swing it, replace old and dated appliances with stainless steel appliances. Most older homes are suffering from hideous kitchen wallpaper and you can easily perk up your kitchen by replacing this with a complimentary paint color. If the kitchen is small, go for a lighter shade of yellow, lilac, or cream while bigger spaces allow for brighter or darker shades like a deep red, orange, lime, or gray. Personally, I like my kitchens light and opt for neutral since everyone has a style all their own. You want your kitchen to have a wow factor but always be careful when choosing paint color... You will see the most return on your investment on your kitchen upgrades.

2) Update your bathroom fixtures, paint, and flooring. If your home has three bedrooms and one bathroom or if it could desperately use a half bathroom, consider adding an additional one if you have the extra space. The extra square footage and better marketability will increase the value of your home. While adding a whole new bathroom can have a heavy price tag, a half bathroom can add up to 10.5% to the value of your home while a full bathroom can add up to 20% of the value.

3) Remove old carpet and replace with upgraded carpet or wood. Tile entryways and perhaps hallways but never stairs. Do not make a huge investment in this area. You want it to look and feel clean and updated, but investing in Italian tile will not increase the value of your home. It might increase interest but not value. Paint your home throughout. In adjoining area's, it's a good idea to use the same color palette and stay within three shades even if you're going super neutral. For example, light beige, medium tan, and brown or just off white throughout is perfectly fine. The key rooms that you can get away with color and it usually won't be a major turn off are the dining room (darker shades of red or blue work well), the bathrooms, and the kitchen. Keep bedrooms neutral.

4) Curb appeal is super important. After all, you want to entice people to walk in and see that awesome kitchen you just remodeled, right? According to Houston appraiser, Frank Lucco, a poorly maintained front yard can result in a 10% drop in value. Clean your yard of any debris, trim shrubs, trees, add fresh mulch and flowers to brighten it up. Paint the front door, trim, and garage door. Line the walkway with solar powered lights which is functional and adds ornamentation.

5) Adding an additional bedroom adds 4% to the value of your home and each additional 1,000 square feet of living space will add 3.3%, so if you have an attic or basement that can be converted to usable space, go for it. Besides an additional bedroom, you can turn that extra space into a sport's den with a bar, a children's play room, or an office. If your lot allows for room for growth, also consider expanding the existing bedrooms for additional living and closet space. Make sure you get any permits needed for exterior or building projects by contacting your HOA and city project development organization. You can find a schedule for La Jolla city planning and project development meeting times posted right here every week.

For a free home valuation, information about sales in your area, and for assistance with any of your  real estate needs contact Kristin Benedetti at Berkshire Hathaway HomeServices
1299 Prospect St. La Jolla, California 92037, BRE # Lic 01946447 , Cell: 858-900-5578, lajollaluxuryhomes@outlook.com , www.lajollaluxuryhomefinder.com.   I can also provide you with referrals to reputable contractors throughout Southern California, if you need any help with home improvements. To get pre-qualified or if you have any questions about financing, please contact HomeServices Lending, an affiliate of Wells Fargo Home Mortgage at (858) 436-3483.

Advice for the Empty Nester

If your last child is all grown up and about to leave home — or he or she has already moved out — you might be experiencing some mixed emotions. Although you might actively encourage your children to become independent, the experience of letting go can be painful. You might find it difficult to suddenly have no children at home who need your care. You might miss being a part of your children's daily lives — as well as the constant companionship. You might also worry intensely about your children's safety and whether they'll be able to take care of themselves on their own. You might struggle with the transition if your last child leaves the nest a little earlier or later than you expected — or at a time different from when you did. If you have only one child or strongly identify with your role as parent, you might have a particularly difficult time adjusting to an empty nest.

Now is the perfect time to dust off your passions that may have been pushed aside for many years and embrace this time as it is truly yours. Your child may be out of your home, but they will always carry with them all of the valuable lessons you taught them to keep them safe. Oftentimes, parents feel their new quiet surroundings to be a constant reminder of what used to be and sometimes the best way to overcome that feeling of being emotionally stuck in neutral can be appeased by sizing down.

It's important to take several elements intro consideration when making this adjustment. Find an area close to senior or community activity centers, convenient to doctor's and hospitals, mild climate which REALLY helps arthritis, and when choosing how much you would like to size down... consider a second bedroom to use as an art room/ study/ guest room. La Jolla and UTC have many options with all of these conveniences that will make your transition very smooth. Many condo/ townhome communities offer transportation to UCSD and Scripps, grocery stores, and community centers. There are a plethora of one, two, and three bedroom condominiums and townhomes throughout the area that will suit your new lifestyle and budget.

If you have any questions or if you need any help listing your home or finding a new home please contact Kristin Benedetti BRE Lic # 01946447,
 Berkshire Hathaway Home Services,
1299 Prospect St, Suite 101, La Jolla, California, 92037 
Cell: 858-900-5578 or mail at lajollaluxuryhomes@outlook.com.

Getting Approved for a Home Loan with Bad Credit

If you're considering buying a home, your first step is to find out what you can qualify for. If you have bad credit or poor credit, here are some steps to get you on the right path for repairing your credit and getting approved for a home loan.

1) Check your credit rating before shopping for a home loan. Your credit may not be as bad as you think. A score under 620 is considered a very bad credit score. A score above 620 but below 680 is not ideal, but it is not so low as to keep you from getting a home loan. You can get a free credit report once a year through www.freecreditreport.com.
             

2) Go over your report and pay off any accounts or make payment arrangements for accounts that are over due and particularly any accounts over 60 days past due. Oftentimes, collection agencies will work with you to reduce the balance by deducting interest accrued which can sometimes cut your bill by 30%- 50%, so it's always worth asking. Take the time to raise your credit score by paying off some credit cards and making your accounts current. If your credit score is under 620, this is the only option to help you get an affordable home loan.

 

3) Create a budget to determine how much you can afford to pay for your monthly mortgage payment once you have improved your credit rating. If you have significant amounts of debt, there may not be any extra money to put toward a home loan. A good rule of thumb, is to keep three credit cards and reduce the balance on each card so that you only owe 10% of revolving debt. This will help boost your credit score by lowering your debt to income ratio.
              

4) Collect the money for a down payment over 20% of the purchase price. The more money you can put down on your home, the more favorable your home loan terms will be, in spite of your low credit score. A large down payment shows the lender that you have some financial responsibility and lowers your monthly payment amount.
              

5) Prepare yourself to have a high interest rate on your loan. This is the penalty for having a low credit rating. You can counter this somewhat with a larger down payment on your home.
             

6) Keep careful track of the closing costs, points, penalties and fees on any loans you are offered. This will protect you from the dangers of the subprime lending market.
             

7) Consider having someone co-sign for the loan with you if you have extremely poor credit. Your spouse or parent, for example, may be willing to sign for the loan with you, and their good credit score may help partially offset your score.
             

8)Avoid the temptation to get an adjustable rate mortgage (ARM). These have lower monthly payments at the beginning of the loan, but the payment amount increases when the national mortgage rate increases. This means your mortgage could end up being much more than you can afford in a few years. People are often tempted by the lower payments that end after about three years and when they payment rises dramatically, you may find yourself needing to sell or face foreclosure.

             

9) Choose a loan with a fixed interest rate that has fair fees and the lowest interest rate possible for your situation. Keep the information on the other loans available in case you are denied for your first choice.

10) Some great options to consider are HUD homes, short sales, foreclosures, and if you served in the military you may qualify for a VA/ Cal-vet loan. Contact HomeServices Lending at (858) 436-3483 for more information about financing the home of your dreams.

Tips for the First Home Buyer

The challenge of buying a home for the first time can seem so daunting that it's tempting to either just go with the first house that falls in your price range or continue to rent. To help you demystify the process and get the most out of the purchase, we'll examine what you'll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you purchase your first home. Contact Kristin Benedetti BRE Lic # 01946447 at Berkshire Hathaway La Jolla at 858-900-5578 or via email at lajollaluxuryhomes@outlook.com for assistance finding your first home!

The first thing you'll need to determine is what your long-term goals are and then how home ownership fits in with those plans. It could be that you're simply looking to transform all those "wasted" rent payments into mortgage payments that actually give you something tangible. Others see home ownership as a sign of their independence and enjoy the idea of being their own landlord. Narrowing down your big-picture homeownership goals will point you in the right direction. Here are five questions to ask yourself:

1.What type of home best suits your needs?

You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, so you need to decide which type of property will help you reach those goals. You can also save on the purchase price in any category by choosing a fixer-upper, although the amount of time, sweat equity and money involved to turn a fixer-upper into your dream home might be much more than you bargained for. Check out http://lajollaflips.blogspot.com for some great information on buying a fixer upper, which can be well worth it if you prepare yourself for all that it entails. No surprises= great results! 

 If you are thinking about starting a family soon or if you already have some little ones, carefully consider the location. Good schools and low crime rates are a must. La Jolla and Del Mar have great investment opportunities for first time buyers, while providing adjacent neighborhoods that you would be able to upsize when ready without uprooting the family. Scripps Ranch, Rancho Bernardo, Carmel Valley, and Carlsbad also had a great selection of homes in very family oriented neighborhoods, at a lower price point.

2.What specific features will your ideal home have?

While it's good to retain some flexibility in this list, you're making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trust-worthy appliances.

 When you discuss your preferences with your realtor, make a list of which preferences are a must and which are negotiable (close to freeway access/ work/ ocean/ hospital/college, stairs, ocean view, office/ den, pool, fireplace, extra storage space).

4.How much home can you actually afford?

Before you actually begin the purchase of your new home, it is important that you begin to organize your documents and review your credit standing. Your credit, though not always the only factor, is the most important factor when considered for financing for a home loan. You should review your credit reports and capture a clear understanding of where you stand. Even if you have great credit, you must make an analysis. Lenders look at your income-to-debt ratio, as well as your credit score and activity. It is important that this ratio reflects that you can afford the expenses of the home (principal, interest, taxes and insurance). Most lenders agree that your income-to-debt ratio should not exceed 28 percent to 30 percent of your overall income. If you find that your credit needs improvement or your ratio is too high, this is the time to initiate the adjustments that are needed.

 Paperwork is also very important in your preparation. You will need to gather your yearly tax returns, W-2s, regular pay stubs and bank statements. Your lender may require additional information, which they will present to you at the time of purchase. However, if you have these initial items readily available, you will be on the right track.

5.Who will help you find a home and guide you through the purchase?

A real estate agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you've chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent's expertise can protect you from any pitfalls you might encounter during the process.

The Buying Process

Now that you've decided to take the plunge, let's explore what you can expect from the home buying process itself. This is a chaotic time with offers and counter-offers flying furiously, but if you are prepared for the hassle (and the paperwork), you can get through the process with your sanity more-or-less intact. Here is the basic progression you can expect:

1.Find a home.

Make sure to take advantage of all the available options for finding homes on the market, including using your real estate agent, searching for listings online and driving around the neighborhoods that interest you in search of for-sale signs. Also put some feelers out there with your friends, family and business contacts. You never know where a good reference or lead on a home might come from.

2.Consider your financing options and secure financing.

First-time homebuyers have a wide variety of options to help them get into a home, including federally-backed loans and loans for homebuyers who don't have the standard 20% minimum down payment. Your state may also have its own programs for first-time homebuyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shop around. It will really pay off.

3.Make an offer.

Your real estate agent will help you decide how much money you want to offer for the house along with any conditions you want to ask for, like having the buyer pay for your closing costs. Your agent will then present the offer to the seller's agent; the seller will either accept your offer or issue a counter-offer. You can then accept, or continue to go back and forth until you either reach a deal or decide to call it quits. If you reach an agreement, you'll make a good-faith deposit and the process then transitions into escrow. Escrow is a short period of time (often about 30 days) where the seller takes the house off the market with the contractual expectation that you will buy the house - provided you don't find any serious problems with it when you inspect it.

4.Obtain a home inspection.

Even if the home you plan to purchase appears to be flawless, there's no substitute for having a trained professional inspect the property for the quality, safety and overall condition of your potential new home. If the home inspection reveals serious defects that the seller did not disclose, you'll generally be able to rescind your offer and get your deposit back. Negotiating to have the seller make the repairs or discount the selling price are other options if you find yourself in this situation.

5.Close or move on.

If you're able to work out a deal with the seller, or better yet, if the inspection didn't reveal any significant problems, you should be ready to close. Closing basically involves signing a ton of paperwork in a very short time period, while praying that nothing falls through at the last minute.

Things you'll be dealing with and paying for in the final stages of your purchase may include having the home appraised (mortgage companies require this to protect their interest in the house), doing a title search to make sure that no one other than the seller has a claim to the property, obtaining private mortgage insurance or a piggyback loan if your down payment is less than 20%, and completing mortgage paperwork. (For more on the pitfalls of private mortgage insurance, check out Six Reasons To Avoid Private Mortgage Insurance and Outsmart Private Mortgage Insurance.)

Congratulations New Homeowner ... Now What?

You've signed the papers, paid the movers and the new place is starting to feel like home. Game over right? Not quite. Let's now examine some final tips to make life as a new homeowner more fun and secure.

1.Keep saving.

With homeownership comes major unexpected expenses, like replacing the roof or getting a new water heater. Start an emergency fund for your home so that you won't be caught off-guard when these costs inevitably arise.

2.Perform regular maintenance.

With the large amount of money you're putting into your home, you'll want to make sure to take excellent care of it. Regular maintenance can decrease your repair costs by allowing problems to be fixed when they are small and manageable.

3.Ignore the housing market.

It doesn't matter what your home is worth at any given moment except the moment when you sell it. Being able to choose when you sell your home, rather than being forced to sell it due to job relocation or financial distress, will be the biggest determinant of whether you will see a solid profit from your investment.

4.Don't rely on making a killing on your home to fund your retirement.

Even though you own a home, you should still continue to save the maximum in your retirement savings accounts each and every year. Although it may seem hard to believe for anyone who has observed the fortunes some people made during the housing bubble, you won't necessarily make a killing when you sell your house. If you want to look at your home as a source of wealth in retirement, consider that once you've paid off your mortgage, the money that you were spending on monthly payments can be used to fund some of your living and medical expenses in retirement.

Conclusion

This brief overview should help put you on the path towards filling in any gaps in your home-buying knowledge. Remember that the more you educate yourself about the process beforehand, the less stressful it will be, and the more likely you will be to get the house you want for a price you can afford - and with a smile on your face.

For assistance with any of your  real estate needs contact Kristin Benedetti at Berkshire Hathaway HomeServices 1299 Prospect St. La Jolla, California 92037, BRE # Lic 01946447 , Cell: 858-900-5578, lajollaluxuryhomes@outlook.com , www.lajollaluxuryhomefinder.com.   I can also provide you with referrals to reputable contractors throughout Southern California, if you need any help with home improvements. To get pre-qualified or if you have any questions about financing, please contact HomeServices Lending, an affiliate of Wells Fargo Home Mortgage at (858) 436-3483.