Garcia Review

by The Real Estate Faction on July 24, 2014

photoI used my (Veterans Affair)VA loan benefits to purchase this new home. When I first arrived back to my home town from active duty, I spoke to many agents to try to get some help and knowledge on purchasing my first home. I felt pushed away and had the feeling like they didn’t want nothing to do with VA. I would like to acknowledge the fact that when I first spoke to Michael and Ron they were absolutely very respectful and truly professional and were not afraid of working with my wife and I. Both Ron and Michael worked just like I would hope they did. Always on top of things when I had questions and always realistic with financial situations. I would definatley recommend these guys to any Veteran transitioning back into civilian life and looking forward into buying a new/fist home. Thanks a lot gals and guys for helping us out through this epic life changing experience.




Despite a housing market that appears to be slowing down, construction jobs should continue to help drive job growth in Southern California over the next few years, according to a new report.

In a paper produced as part of the quarterly UCLA Anderson Forecast released Thursday, UCLA economics professor Jerry Nickelsburg said that sliding home sales volume — the number of homes sold in Southern California dropped 15.1% in May compared with last year, according to San Diego-based DataQuick — is masking a housing market that is becoming increasingly, as he put it, “normal.”

And when markets are normal, builders build.

The decline in sales compared with last year largely reflects an end to foreclosures and other so-called distressed properties that were flooding onto the market. Now that deluge is over, and inventory mostly consists of properties that traditional homeowners are trying to sell. That is a much easier environment for home builders to navigate, Nickelsburg said, which will make them more likely to launch new construction.

“This is a market where the transactions are not banks blowing out their supply [of foreclosures], which is very hard to predict,” he said. “You have a much more normal market. Prices are rising. That brings people off the sidelines, which increases supply. And all that gives builders some confidence that they’re going to get the prices they forecast.”

So, Nickelsburg said, they start breaking ground. Building permits in Los Angeles and Orange Counties grew 44% last year, according to data from the Census Bureau, and were up an additional 25% through March.

This is a good thing for the region’s economy, analysts say. One in every eight new jobs created in California since the start of 2013 is in construction, Nickelsburg notes. If the decline in sales reflected a drop in demand, that probably would dampen California’s relatively strong job growth. Instead, he said, building is likely to keep pushing the job market forward, at least to a point.

“We have no expectation of getting back to when we had 1 million people on construction payrolls” in the mid-2000s, he said. “But getting back to something like 700,000, we can do. And those are good jobs, reflective of a healthy economy.”

Overall, the UCLA Anderson Forecast predicts that job growth in California will pick up speed over the next year and a half, with nonfarm payroll employment growth of 1.8% in 2014, 2.3% in 2015 and 2.1% in 2016.

The unemployment rate, the forecast estimates, should drop to 6.8% next year and 5.9% in 2016.

It also predicts that West Coast cities like Los Angeles will continue to draw large amounts of Chinese investment as that country’s real estate bubble continues to deflate and investors seek safer havens for their money.

But nationally, the report states, “something is seriously wrong,” with a variety of long-term factors keeping this economic recovery from taking flight. Still, the forecast predicts gross domestic product growth of 3.6% in the second quarter as the economy bounces back from a tough winter, followed by solid but unspectacular 3% growth into 2015.

Twitter: @bytimlogan

Copyright © 2014, Los Angeles Times



John Cottriel review of Michael Brown

by The Real Estate Faction on May 13, 2014

We interviewed several local agents in preparation to sell our investment property. None seemed to hit a home run for us. Then, we were referred to Michael Brown. After interviewing him the choice was clear, we needed to work with Michael. He knew more about the market and was more prepared than the other agents. The attribute we liked most about Michael is he was always available to talk and made the whole transaction flow smoothly. He sold our home quickly with multiple offers. We recommend Michael to anyone thinking about buying or selling a home.




Here’s Why Owning Your Own Home Really is a Good Investment

by The Real Estate Faction on May 6, 2014

By Amanda Alix| More Articles May 3, 2014 | Comments (0)  The Motley Fool

Source: Flickr / American Advisors Group.

According to a recent Gallup poll, more Americans are beginning to view real estate as a viable long-term investment. Thirty percent of those surveyed early last month took this view, up from 25% just a year ago. Gallup credited an improving housing market as being the chief driver of the change in popular opinion on this matter.

But, wait. Some experts, notably Yale economics professor Robert Shiller, disagree heartily with this view. In interviews over the past couple of years, Shiller referred to his research in which he studied home price appreciation from 1890 to 1990. He found that, considering costs of construction and inflation, homes really didn’t appreciate in value at all.

Does that mean that buying a home is a lousy move? Not at all, and here’s why.

How do you define “investment”? According to Investopedia, an investment is the purchase of an asset “with the hope that it will generate income or appreciate in the future“. Therefore, you may purchase a single-family house with the hope that it will appreciate, and it becomes an investment. Whether it is a good investment, of course, remains to be seen. Buying a duplex, by this logic, would qualify as a good investment, due to the ability to rent one side, therefore generating income, while living in the other.

But what if, as Shiller has suggested, you forgo buying altogether, and rent? You could then take the amount of a home’s down payment and invest it in another vehicle, such as stocks. Currently, the S&P 500, for instance, has returned an average of 7.3% over the past 10 years.

Due diligence is key That sounds a whole lot better than the 0% return on housing that Shiller refers to, doesn’t it? But that scenario presupposes that you leave that money alone for the long term. Buying and selling at the wrong time can cost you big time, and, according to recent data, most people hold onto stocks for only around six months. Many buy high and sell low, eroding returns.

The same goes for housing, as those who became caught up in the foreclosure crisis can attest. Even the investment property scenario can sour quickly if you pay too much for the property and cannot secure a high enough rent to cover your expenses.

Buying a home is, like any investment, deserving of thoughtful due diligence. After all, you have to live somewhere, and paying rent is not an investment of any sort. At least those monthly mortgage payments will net you an asset that you will eventually own free and clear. If you plan ahead to pay off your home loan before retirement in order to reduce expenses, your residence becomes an integral part of your long-term retirement plan, as well.

Interestingly, the Gallup poll respondents who were most likely to say that buying real estate was a good long-term investment were those who owned their own homes – proving that home ownership can be – and often is – a great investment.

Owning a home isn’t the only tax “loophole” Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report “The IRS Is Daring You to Make This Investment Now!,” you’ll learn about the simple strategy to take advantage of a little-known IRS rule. Don’t miss out on advice that could help you cut taxes for decades to come. Click here to learn more.







Romer Review

March 26, 2014

We found Michael Brown through a trusted family friend to sell our home in San Juan Capistrano. As first time home owners, this was the first time our family would go through the process of selling a home. As a military family, we had relocated to the east coast a couple years ago, so it […]

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Dieda Review

January 27, 2014

“We were first time buyers and we could have not been happier working with Michael Brown. We had seen the reviews online about Michael and we knew he would be our first choice. He ended being our first and last choice. Michael made the process as easy as possible with the tools and expertise he […]

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Adjoining Owners Equally Responsible for Shared Fences and Boundaries

October 14, 2013

Commencing January 1, 2014, adjoining landowners must share equally the responsibility for maintaining boundaries and monuments between them. Adjoining landowners are presumed to share an equal benefit from any fence dividing their properties, as well as equal costs for construction or maintenance, unless otherwise agreed in writing. This new law also provides specific procedural requirements […]

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Existing home sales up 6.5% as housing recovers

August 27, 2013

Tim Mullaney, USA TODAY7:15 p.m. EDT August 21, 2013 Existing home sales rose 6.5% in July, reaching their highest level in nearly four years, the National Association of Realtors said Wednesday. Homes sold at a 5.39 million seasonally adjusted annual rate, the group said, handily beating economists’ forecasts of a 5.15 million sales pace. The […]

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Myane review of working with Michael Brown

August 1, 2013

“Michael was referred by a friend of ours and we could not be happier we chose him to be our realtor. The market was very hot when we were looking but thanks to Michael we were able to get a home that wasn’t even listed on the market . He was easy to connect with […]

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Andrew Stowers review of Michael Brown

July 11, 2013

Michael does a wonderful job assisting in every way necessary. I highly recommend his services to anyone that is either buying or selling their home. He was always prompt with his responses, respectful, and helpful at answering any questions. As this was my first time selling a home, Michael helped me through the process and […]

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