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Ask The Experts: The Stovall Team
Saving money ranks high on most of our lists of New Year’s Resolutions. Create a family budget immediately. A snapshot of what you make and spend is critical. Who wants to be bothered with a budget? It takes time to ex-amine what you spend, where you spend it, and how much (or how little) you bring in relative to your expenses. Plus, you could be in for some unpleasant surprises. However, if you have dreams of buying a home, paying down debt, taking an exotic Hawaiian vacation, or having a comfortable retirement, planning is vital. And the first step to securing your future is to be aware of how you spend your money today.
It is the simple idea that the small trivial things we spend on everyday adds up to an extremely large amount over time. It isn’t all about skipping the store-bought fancy coffee as the “latte factor” is actually somewhat of misno-mer, it covers a lot more than lattes. It can be the candy we buy to snack on out of sheer boredom. Or the ciga-rettes we buy because we just can’t shake the nasty habit. Or the subscriptions to the magazines we don’t read but are too lazy to cancel. Heck it can even be the miles that we drive to work everyday.
The latte factor is the unconscious spending on the little everyday things that do not add any value to our lives.
Taking control of your latte factor means the willingness to give up on the little things for the sake of big wins (those that bring long term happiness and value). It calls for discipline of your spending habits. New Year’s resolutions can be a great way to spark change in your life. And wouldn’t freeing up money be a great way to start out 2016?
Sources: Stovall Team, Realty Times, CNN Money
Posted in Real Estate News
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Money Saving Tip for 2016: Pay Attention to the Little Things
In 2015 we saw the U.S. women win the World Cup, Letterman retire, and the Force awaken. Oh, and we spent too much on some things. Some of the ways it happened were small—others, not so much. However it occurs, it’s important to know where we collectively spend so we can make the tweaks to fix it. Here are a few big ways Americans spent money this year.
- Student loans. The college graduates of 2015 will pay back more than $35,000 each, according to The Wall Street Journal. Consider attending a university you can afford, apply for scholarships, and work throughout the year.
- Ziosk tablet activities. Ziosk tablets are the devices on restaurant tables that allow you to see the menu or pay your check. That’s good. You can also use them to shop or pay for games the kids can play. Not good!
- Gym memberships. Tons of people buy health club memberships in time for January 1—but by that month’s end, the treadmills are empty.
- Daily coffee trips. Back before coffee shops started popping up on every street corner, people brewed it themselves.
- Car wash upgrades. With all those “upgrades,” it’s like getting one wash for the price of three.
- Name-brand paper products. You only use paper towels, napkins and paper plates once before they hit the trash. So why would you pay name-brand prices for them?
- Timeshares. The average cost of a timeshare is around $16,000, according to Marketwatch. Between that price, the maintenance fees, and the fact that timeshares are dang near impossible to sell, the stress will suck the joy out of your getaway.
There’s nothing wrong with buying stuff you can afford. The trouble comes when you spend too much because you aren’t paying attention. Keep an eye on your spending now and you’ll keep more of your money later.
Source: Realty Times, and The Stovall Team
Posted in Buyers, Sellers
Tagged California, Coastal Orange County, Costa Mesa, Costa Mesa Real Estate, Cypress, Cypress Real Estate, Fountain Valley, Glen Mar Huntington Beach, Huntington Beach Real Estate
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Real Estate Investing
The Chartered Financial Analyst (CFA) Institute categorizes real estate as an alternative investment that includes residential and commercial properties as well as mortgage-based securities and real estate investment trusts. For most real estate investors, these investments are characterized as income-generating properties that see revenue from rent earned and capital appreciation from the increase in market value. Since this investment vehicle depends on the net operating income (NOI), maximizing cash flow is key to a successful real estate investment.
To fully understand the importance of cash flow to real estate investment, it is necessary to know that the value of the property is directly linked to the NOI. Unlike residential homes that get their value from comparable sales, income-generating real estate value is calculated as the annual NOI multiplied by an industry standard rate of return, called the capitalization rate. For instance, if the property has an annual NOI of $100,000 and a 10 percent capitalization rate, then the property would be valued at one million dollars. Since NOI is calculated after expenses and both property value and return on investment are depended on NOI, it is important to maximize income and minimize expense. The Stovall Team is a knowledgeable Real Estate Team with expertise in this form of alternative investment. We are happy to makes it easier to identify opportunities for high returns.
As an alternative investment, real estate is historically poorly correlated to the stock market, making it a good investment to diversify a portfolio. During times of stock market loss, real estate continues to offer returns. Real estate is positively correlated to inflation, meaning that it generally increases in value as inflation increases. This makes real estate a good inflation hedge.
Sources: Realty Times, Stovall Team
Posted in Real Estate News
Tagged Investment Opportunities, Real Estate Investing, Stovall Team, Stovall Team Real Estate
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HOW THE FED’S MOVE WILL AFFECT THE REAL ESTATE MARKET
Interest rates are affected by the following three factors: the bond market, the Federal Reserve, and the health of the economy. On December 16, 2015 the Federal Reserve announced that it would be raising the federal funds rate by .25 percent. Here’s how this announcement will affect the real estate market.
What does this mean for the real estate market? Mortgage rates are determined by many factors, but the driving force is the yield on the 10-year Treasury note. Increased interest rates do not necessarily mean an increased yield for the note. Therefore, we should not expect a significant increase in mortgage rates. However even if the interest rate did positively affect the yield of the note, mortgage rates are still at historic lows. The average mortgage interest rate for the last 45 years has been 8%, raising as high as 18% in 1981. Buyers can expect to cash in on these benefit for at least another year. Besides, economist and lenders have predicted that the feds would raise the interest rates sometime this year. The economy saw it coming and has spent the last six months adjusting accordingly.
An Example So let’s run some numbers and see just how much the .25 percent increase will cost a buyer. The monthly payment on a loan of $300,000 at a fixed 30-year rate of 4.375 would be $1497.86. A 25 basis point increase would move your monthly cost up $45.46 to $1,543.32. Would $45 a month keep you from purchasing a home?
Conclusion: winners and losers The fed’s actions will produce both winners and losers. In general rising interest rates help savers and hurt borrowers, so those with money in interest bearing accounts can expect to benefit from higher yields in the future. Debtors and new borrowers will find it more expensive to carry loan balances. However, none of this will happen overnight. Rates will continue to rise over the next couple of years, so everyone will have time to adjust to these changes. The fed’s announcement shows that the decade of historically low interest rates is coming to an end, if you are on the fence about purchasing a new home, I advise you to take action now!
Source: Realty Times
Posted in Real Estate News
Tagged HOW THE FED'S MOVE WILL AFFECT THE REAL ESTATE MARKET, Stovall Team, Stovall Team Real Estate
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Stovall Team is the FIRST CHOICE
Stovall Team is the First Choice
The Stovall Team has logged over 700 miles in just two months since the start of 2016, walking in your local neighborhoods distributing our “Real Estate Insight”. These miles give us a chance to talk to people about Real Estate. It gives us a great chance to connect with our neighbors, friends and clients. It also keeps our fingers on the pulse of the market activity in your area. These efforts matter because we work in your neighborhood which is also our neighborhood. This gives us an early chance to know or have an idea of what homes are coming on the market in the near future or months in advance.
With over 50 years of combined experience, we are respected in our field and have working relationships with many Realtors. Just within my company of 350+ agents, Star Real Estate has a whopping 40% market share in the Huntington Beach and Fountain Valley Marketplace. We were also recently honored as the #1 Agent/Team Company wide for our 2015 production. Often times homes are sold before they ever hit the market thanks to “pocket listings”. Being a part of a large and productive Real Estate company and knowing the listing agents and their listing inventory can be a huge asset to you or your family member in the home selling or buying process. We can provide the edge that will make a world of difference for you.
Even homes that make their way to the MLS can be challenging to purchase and buyers may find themselves in a bidding war. Working with the Stovall Team helps in a multitude of ways. Our strong reputation as honest hard working and highly ethical agents translates to cooperative agents trusting us. They know that if we are working with a buyer, the buyer has been pre-approved, educated, and knows exactly what they are getting into. We will also help write the offer in a matter at which makes the most sense and puts us in the best strategic position.
Stovall Team Facts
-Live, work, and own in your area
-On the cutting edge of marketing & technology
-Top 1% of Realtors in Orange County
-Serving your area for over 39 years
-Over 1,825 homes sold
Working with The Stovall Team gives you the edge you need in this highly competitive real estate market place. Call Micah at 714.343.9294 or Steve at 714.393.5377 for a complementary market evaluation or pre purchase consultation today.