TIME magazine had an article written by Dan Kadlec talking about now is the time to buy your home.  I could not agree more!  Some people will say “you are just saying that because that is how you get paid”…that is true this is how I get paid, but I am able to stay in this business for a long time because of the way I guide my clients.

In this article Dan Kadlec talks about now is the time to buy because of the interest rates and how low they are.  He also talks about the fact that it might not be the absolute bottom for home values and the economy in general but he thinks we are close (with in a year of the “bottom”).  He talked about how if you buy now with today’s interest rates property values could still go down another 10% along with a .5% increase interest rate (because we are at the bottom and starting to recover)  your monthly payments will be the same. 

Dan Kadlec mentions a few other good points; he says that this purchase should be a purchase of your “home”, where you are going to live, its not ONLY an investment.  This should be something you are going to live in for 4-5 years.  It is somewhere you want to live and you can call home!  Lets not forget there is a write off unlike renting. 
One of my friends once told me “I don’t understand while people say they are waiting for the bottom of the market, its not like they ring a bell for everyone to know its now going up”.

I personally think that you have to buy when you are ready but if you can buy now its as good as time as any for the following reasons:
1) Rates will not stay this low forever.
2) You are not paying top dollar for good properties.
3) You can negotiate the terms you want.
4) Owning real estate is alway a great long term investment.

“Ingnore the Headlines!”  By  Dan Kadlec
This is a link to the article, read it and tell me what you think.

My deal of the week is 477 25th St. Hermosa Beach, CA 90254 ( listing with Shorewood Realtors, Ed Kaminsky).  This is a “Fixer” close to the beach, close to Hermosa Valley Park, close to Hermosa Valley School, short walk to Martha’s (my favorite Hermosa breakfast place).  It won’t appeal to everyone, it is a duplex and it does need a lot of work, what I do like about it is that it gives you a lot to work with as a potential buyer looking to live in a nice spot of Hermosa Beach.  Depending on your financial situation you can fix it up, jack the rents and hold it for a while until you are ready to build your dream home.  You could also fix it up, rent it out and let it appreciate.  Another option would be to tear it down and build right away and capitalize on the large 4,000+ square foot lot you get, the sweeping valley views, the possible ocean views and the great southern sun exposure that would keep a new house light and bright!

The Price is  $1,099,000 and you get 2 separate units both 2 bedrooms 2 baths. The rear unit is significantly large than the front.  The property sits on a double corner giving you only one neighbor with lots of light and great potential curb appeal. 

This one will not last because of its location, size and attractive price for the area.

Sorry no picture.  Below is the public notes on the property.

Incredible opportunity for a builder, contractor or talented do-it-yourselfer.
DO NOT DISTURB TENANT they are NOT aware its for sale and seller wants to keep it that way. That means a great opportunity for someone.  The zoning likely is for a new single family home or just fix up the place and keep it for a while then build,or live in one unit and rent the other. One of the most sought after Hermosa locations over looking the Valley yet close enough to the beach to walk and there might end up being an ocean view if you build up. No guarantees but it looks possible. The front house is older built in 1929 and is about 880 sqft and the back house was built in 1971 and is approx. 1200 sqft. Per the seller the rents are way below market. One tenant has lived in the property for 15 years without a rent increase. The tenants pay for everything except taxes and insurance.