Gorgeous Panoramic Ocean views from almost every room in this elegant 4 bedroom plus office and 5.5 bathroom is an entertainers dream! Enjoy multiple private ocean view terraces from every bedroom, majestic staircase with iron handrail, limestone and hardwood floors throughout, wine room, crown molding, designer kitchen with stainless steel appliances, fully landscaped pool and spa with built-in BBQ.
Offered at $4,890,000
Buying a home costs money. Lots of money. There’s the down payment and the monthly mortgage payment and the maintenance and taxes and the insurance and… Are you overwhelmed yet?
It might seem like so much that you just want to put off the house hunt and sign that yearlong lease with your landlord (even though he upped your rent 25% and will likely do the same next year).
But this is going to blow your mind: Even with all of those costs, you still stand to save more than $200,000 over the next 30 years if you buy right now.
Yep, that’s right. There’s a financial benefit—and, similarly, a financial penalty—forevery single day you pay your landlord instead of your mortgage company. At a national level, the 30-year financial benefit of owning today is $217,726, according to our economic data analysts, who crunched the numbers to determine the relative merits of buying vs. renting. (Their work doesn’t capture qualitative advantages such as more control over your living situation, flexibility with pets, and, generally, more options—all things many potential home buyers would argue are equally, if not more, important when deciding whether to take the plunge.)
Postpone for one year, and you’re losing out on an estimated $18,672 in savings. Delay for three years, and that figure jumps to $54,879.
“We’re at a critical juncture: Rents, home prices, and mortgage rates are all expected to rise significantly over the next several years,” Smoke says. “That means the cost of delaying homeownership will go up even more sharply, if you wait three years or even one. It’s much like the decision to start contributing to a 401(k). Delay contributing, and you lose out on the compounding returns.”
‘Financial calculus’ confirms it’s wise to buy ASAP
Smoke and his team used a lot of factors to come up with these estimates, and they made quite a few assumptions as well.* For instance, they assumed that any money saved by renters would be invested, and that the investment would enjoy a compound annual growth rate of 5% (that’s consistent with conservative long-term expected market returns).
A bit of good news from NAR.
According to NAR, home prices have climbed in 85% of U.S. Metropolitan home markets as low mortgage rates and the strongest labor market in almost 7 years spurred demand.
The median price of an existing single-family home rose from a year earlier in 148 of the 174 areas measured, the NAR said in a recent report.
Fifty-one areas had price gains of 10% or more; prices declined in 25 areas.
“The housing market is benefiting as employment returns to pre-crisis levels.” says a spokesperson at NAR.
Contracts to buy homes rose in March to the highest level for the month since 2005, according to the NAR. (March is the latest statics available).
The unemployment rate was 5.5% in February and March, (a level the Federal Reserve defines as full employment) the rate dropped to 5.4% in April.
Also, “boomerang buyers” have become eligible again and studies have shown that once consumers have owned a home (but then forced to rent because of “life circumstances”) purchase home in higher numbers than those who are currently renting.
The publisher of the Los Angeles Times is buying U-T San Diego for $85 million, strengthening its presence in Southern California and putting the top newspapers in the state’s two largest cities under common ownership.
Tribune Publishing Co., owner of the Times, Chicago Tribune, Baltimore Sun and other publications, said Thursday that the 145-year-old U-T would remain a separate newspaper.
The U-T has an average print circulation of 268,038 on Sundays and between 177,885 and 216,417 on weekdays, trailing Digital First Media’s combined Los Angeles-area publications. The U-T’s circulation trails the Orange County Register on Sundays but is ahead on weekdays.
Tribune Publishing’s newspapers were spun off from Tribune Media last year as a separate, publicly traded company based in Chicago.
“The acquisition of San Diego Union-Tribune and its related community properties is expected to be accretive to Tribune Publishing and reflects our continuing drive to create value for our shareholders,” Jack Griffin, CEO of Tribune Publishing, said in a statement on Thursday. “This represents another step forward in our strategy to leverage our publishing infrastructure, resources and management teams.”
Sales of previously owned homes jumped in March by the most in four years, putting the U.S. residential real estate market on firm footing heading into the busiest time of year.
Purchases increased 6.1 percent to a 5.19 million annualized rate, the highest level since September 2013, figures from the National Association of Realtors showed Wednesday in Washington. Houses were snapped up in 52 days on average, the fastest since July, and property values appreciated.
“It’s consistent with a bit of a spring rebound,” said Gennadiy Goldberg, a strategist at TD Securities LLC in New York, whose forecast for a sales rate of 5.2 million was the closest in the Bloomberg survey. “You’ve had more job growth over the last year or so. A lot of those people who did find employment would be driving some demand for housing.”
The share of first-time buyers inched up while distressed properties were a smaller part of the market, indicating a healthier mix in demand leading up to the May through July period when sales typically surge. While the number of homes for sale rose in March for a second month, more listings of cheaper properties would help provide another leg up for housing.
The gain in March was the biggest since December 2010. Figures from the Mortgage Bankers Association on Wednesday showed stronger demand is extending into April. The group’s index of purchase applications climbed last week to the highest level since June 2013.
Stocks rose toward all-time highs and Treasuries fell for a third day. The Standard & Poor’s 500 Index advanced 0.5 percent to 2,107.96, within 12 points of a record high. The yield on 10-year notes rose seven basis points, 0.07 percentage point, to 1.98 percent at 4:24 p.m. in New York.
While a lean supply of properties for sale has been a hurdle for housing, an increase in inventory last month indicates sellers are confident buyers will emerge as the weather warms. The Realtors group said that 40 percent of homes sold in March were on the market for less than a month.
The number of existing properties for sale rose 5.3 percent to 2 million in March from a month earlier, according to the NAR. At the current pace, it would take 4.6 months to sell those houses compared with 4.7 months at the end of February.
“For inventories, the trajectory of home prices will be a key driver in the decision for an owner to put their home on the market,” Wells Fargo Securities LLC economists Mark Vitner and Anika Khan wrote in a note to clients.
The median price of an existing home surged 7.8 percent from a year ago, the most since February 2014, to $212,100. Figures Wednesday from the Federal Housing Finance Agency showed the cost of a purchased house was 5.4 percent higher in February from the same time last year, matching the biggest gain since May.
“Housing is recovering but home prices are rising too fast,” Lawrence Yun, NAR chief economist, said in a news conference as the figures were released. “The only way to relieve housing cost pressure is to have more supply coming onto the market.”
An increase in supply of new homes, particularly for Americans at the lower end of the income scale, would help, Yun said. Data last week from the Commerce Department showed builders are in little rush. Housing starts rose less than forecast last month following a February pace that was the weakest in more than a year.
Estimates in the Bloomberg survey of 80 economists for existing-home sales ranged from rates of 4.85 million to 5.2 million. February’s pace was revised to 4.89 million from a previously reported 4.88 million.
Purchases increased in all four U.S. regions, led by a 10.1 percent gain in the Midwest. They were up 6.9 percent in the Northeast, 6.3 percent in the West and 3.8 percent in the South.
Sales of single-family homes increased 5.5 percent to an annual rate of 4.59 million, the most since August 2013, while closings on multifamily properties including condominiums advanced 11.1 percent.
Meanwhile, a smaller share of short sales and foreclosures is creating more opportunity for other sellers. Purchases of distressed properties accounted for 10 percent of the total, down from 11 percent a month earlier.
The housing market had been struggling to gain momentum in recent months as rising property values limit purchases by those who are more sensitive to prices, such as young adults and low-income Americans. Federal regulators late last year adjusted mortgage rules to reduce risks for lenders and cut premiums and down payments for lower-income borrowers.
A slowdown of home buying by investors has also created an opening for those looking to make their first-ever purchase. First-time buyers accounted for 30 percent of all purchases in March, up from 29 percent a month earlier, the NAR’s report showed.
Homebuilders are confident better times are ahead. The National Association of Home Builders/Wells Fargo sentiment gauge rose in April to a three-month high amid improved buyer traffic and a better sales outlook. Lenders are also upbeat.
“Interest rates remain low, homes are affordable, consumer and small business confidence remains high, and the labor market is approaching full employment,” John Stumpf, chief executive officer at Wells Fargo & Co., the nation’s largest home lender, said on an April 14 earnings call.
As the Federal Reserve considers raising interest rates for the first time since 2006, the prospect of higher borrowing costs may persuade those who are hesitant to take the plunge. The average rate for a 30-year fixed mortgage was 3.67 percent in the week ended April 16, according to Freddie Mac in McLean, Virginia. The rate was 3.59 percent in February, the lowest in almost two years.
In the U.S., vacation-home sales jumped over 50% in 2014, up from 717,000 homes in 2013, according to preliminary data from the National Association of Realtors (NAR), a trade group. And second-home sales are expected to continue climbing in 2015, saysLawrence Yun, NAR’s chief economist.
“The stock market is booming, which means the wealthy top 10% in the country are feeling better off financially and are opening up their wallets for discretionary purchases,” he says.
Another driver pushing second-home sales is that the leading edge of baby boomers is approaching retirement age, Mr. Yun says. Many are expected to buy second homes with the intent to move there upon retirement, he adds.
Cities in Florida and Arizona have the top share of baby boomers moving there, he says, but Albuquerque, N.M., Boise, Idaho, and Denver also rank among the top markets poised to see an influx of baby-boomer home buyers, according to a recent NAR study. Baby boomers represented 30% of all home buyers in 2014, NAR reports.
News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for NAR.
Some lenders, including Quicken Loans, anecdotally are reporting a jump in both the number and dollar volume of second-home mortgage applications. “That either suggests people are buying larger homes, or [that] property values are appreciating,” says Bill Banfield, vice president of Quicken Loans.
Even a year ago, many lenders were requiring at least a 30% down payment for a second-home jumbo mortgage. Now, many have reduced the down-payment requirement to 20% to attract new borrowers. And in some cases, interest rates for a second-home are the same as for a primary home on loans up to $1.5 million with Quicken and $2 million withBank of America, for example.
However, credit-score requirements may be higher when financing a second home. Milford, Conn.-based Total Mortgage Services wants at least a 740 score for a second-home jumbo with a 20% down payment, but will drop to 720 with 25% down. Bank of America will consider a 680 score.
Second-home borrowers face another hurdle, adds Dave Gorman, Bank of America’s regional sales executive for Oregon and Washington. “You have to be able to show that you can carry both payments,” he adds.
One common deal-killer has been high flood-insurance premiums for homes near the ocean, says John Walsh, CEO of Total Mortgage. Rates have skyrocketed in the New York-New Jersey-Connecticut area since superstorm Sandy hit in 2012. Since banks don’t finance underinsured homes, “sometimes the only buyer is a cash buyer,” he says.
In ultrarich and competitive areas like the Hamptons, buyers must be willing to pay cash, even if they also have applied for a mortgage, Ms. Saatchi, the real-estate agent, says. She says she advises sellers not to accept an offer dependent on financing. “This is the 1%, so the only reason why a buyer would want a deal to be subject to financing is so they can back out,” Ms. Saatchi says.
Here are a few more considerations when deciding whether to finance a second-home purchase.
• Tax breaks. Interest paid on a second-home mortgage is tax-deductible up to the first $1 million of financing. If interest rates are higher on a second-home mortgage than on the primary home, then borrowers may wish to prioritize those payments on tax returns.
• Add it all up. Second homes need furniture, maintenance, utilities, insurance, property taxes and other expenses, such as association fees, Mr. Gorman says. “From a financial perspective, a [borrower] should understand what they are taking on above and beyond the qualifications of a mortgage,” he adds.
• Landlords pay more. Lenders differ on the number of days a borrower can rent out a vacation home for it to be classified as an “investment property.” Loans for these properties have higher interest rates and stiffer qualification requirements.
The pace of home price appreciation in San Diego County remained elevated in February, as home sales and the median price both increased.
Last month, the median price for a home sold in the county was $440,000, up 7.3 percent from February 2014, CoreLogic DataQuick reported. The annual pace is virtually unchanged from January, but double the 3.6 percent rate in November, which was a more than two-year low.
Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said he’s recently seen multiple offers on properties for which he did the loans. The number of transactions in San Diego County in February rose 1.1 percent over the year to 2,568, while activity in Los Angeles and Orange counties fell.
“The market is picking up. Hopefully that’s a sign of increased consumer confidence,” Goldman said. “I still think it’ll moderate. It’s a good thing that home prices are going up. I get a little scared when we start seeing 10 percent appreciation. Why? Because that’s not sustainable.”
Goldman said 7 percent is also not sustainable because wages are not going up fast enough to support it. He has said the county’s long-term average is about 3 to 5 percent appreciation, a couple of percentage points above the inflation rate.
Still, the current pace of appreciation is a far cry from the peak 24.1 percent annual increase seen in June 2013, paced by investors fixing and flipping foreclosure resales. Since then, the market has slowed, as foreclosures reached pre-Great Recession levels and the market became paced by traditional factors such as wages, employment, and interest rates.
San Diego County’s median price rose $5,000 from January to February, while activity was up 15 percent. January is typically a slow month in real estate, as it reflects deals originated during the holiday season, a tame time of year for real estate. New home sales, which hit a record low of 74 in January, rose to 159 in February.
Bond-friendly comments from the Fed on Wednesday caused mortgage rates to improve. Weaker-than-expected economic data was also favorable for mortgage rates over the past week. As a result, rates ended the week lower.
The Fed statement dropped the word “patient”. This provides the Fed with the flexibility to raise the federal funds rate any time beginning in June. However, Fed officials also increased the requirements to raise rates and lowered their forecasts for economic growth and inflation. According to the statement, Fed officials want to see further improvement in the labor market and want more confidence that inflation will reach their target rate of 2.0% before raising rates. The statement accomplished the Fed’s goal of tying rate hikes more closely to the performance of the economy rather than a calendar date. Investors pushed expectations for rate hikes farther into the future.
Supporting the Fed’s economic outlook, recent data has indicated that economic activity slowed in February. Retail Sales unexpectedly posted a third straight monthly decline, while single-family Housing Starts dropped 17%. The details of the two reports made it clear that unusually bad winter weather played a significant role in the weak results. The question is to what degree consumers and home builders simply postponed activity. Investors will be watching to see if pent-up demand boosts the data in coming months.
Looking ahead, we will receive additional readings on the strength of the economy in February, including Existing Home Sales on March 23 and New Home Sales on March 24. Durable Orders, an important indicator of economic activity, will come out on March 25. The Consumer Price Index, the most widely followed inflation indicator, is also scheduled for March 24.
The Rancho Santa Fe School District is considering the possibility of going solar on its R. Roger Rowe campus.
At a March 5 meeting, the board heard an update from Debra Vaughn-Cleff of Webb Cleff Architecture and Engineering on a couple of ways the district could approach a solar project at their school.
One option would provide the school with a 10 percent offset and the other would aim for the “sweet spot,” a 60 to 80 percent offset. The “sweet spot” option comes at a cost of $750,000 to $1 million.
Vaughn-Cleff said the district could decide to pay for the system and own it, or it could opt for a power purchase agreement in which the installation is owned and operated by the solar developer and the school pays the developer for the electricity produced by the panels.
The funding for the solar project would probably come out of the district’s capital funds or operating budget, according to Superintendent Lindy Delaney.
Vaughn-Cleff gave an overview of possible locations for solar installations. For the 10 percent offset option, Vaughn-Cleff said the best option for solar would be panels housed on the new two-story buildings. For the large amount of 60 to 80 percent offset, Vaughn-Cleff said they would look to do roof-mounted solar on the campus’ two story-building and solar canopies on the back of the campus, replacing the lunch structures and continuing on to the swing sets so the swings would be in the shade under the canopy.
Delaney said the district’s SDG&E bill is $14,000 to $20,000 a month and has substantially increased this year.
Vaughn-Cleff said with the solar projects, the district could see a 30 percent reduction in its bill. President Todd Frank said it was a little shocking that they could be producing 80 percent of their own energy and reduce their bill only by 30 percent, but Vaughn-Cleff said that is because of the way SDG&E charges with demand.
Delaney said if the district opted for the solar project, it would hope to have it implemented during summer 2016. The next step would be having a solar company come to the board for a detailed presentation
About 400 people are expected to raise awareness and funds for military families during the SEAL-Naval Special Warfare Family Foundation’s fourth annual fundraiser March 21 at the Del Mar Country Club in Rancho Santa Fe. Founded in 2008, the nonprofit supports Navy SEALs and their families through a variety of programs.
“The Del Mar Country Club is honored to host the SEAL-NSW Family Foundation again this year,” said foundation board member Dominique Plewes, who is co-chairing the event with her mother, philanthropist Madeleine Pickens, for the second consecutive year. The fundraiser has always taken place at the Del Mar Country Club, which is owned by Pickens.
“I don’t think that any of us can be too thankful for our military and their families,” Plewes said. “And as a board member, I know how important these programs are and what a difference it makes in their lives.”
The fundraiser will kick off with a scramble golf tournament, followed in the evening with a cocktail reception, live and silent auctions, and dinner and entertainment.
Professional golf coach Hank Haney will provide a pre-tournament clinic and exhibition for all players. During the gala, Crisa Herzog, daughter of retired Navy SEAL Chief Mike Sandlin, will sing the National Anthem. Gen. Michael Hayden, a retired four-star general who served as director of the CIA and the NSA, will be the keynote speaker.
“You can’t do enough to help these families,” said Plewes, who noted the cause is close to her heart, as her father, Robert Richter, served in the Navy during the Vietnam War. “If anyone can give back, they should. The Navy SEALs and their families deserve it more than anything.”
With the motto “Taking care of their family while they protect ours,” the foundation raises awareness and funds for programs in direct support of NSW families on a local, national and global scale.
In 2014, the foundation spent $2.4 million on a variety of support programs and organizations, including NSWKids, a nonprofit that provides educational diagnostic testing and tutoring to families in the NSW community, and Sisterhood, a worldwide NSW spousal support network.
Other foundation-supported programs and services include family services, emergency assistance, transition assistance, wounded care, bereavement support and remembrance support.
“There’s a lot of great programs already in existence. We work in complementing where there might be gaps,” said executive director Bill Fenick, who joined the foundation in November after serving in the U.S. Navy for 28 years. He most recently served as director of public affairs and corporate communication for the Naval Special Warfare Command in San Diego, a position he held since 2010.
“Our mission talks to supporting the individual and the family through a bunch of programs,” added Fenick, who grew up in a Navy family. “They’re targeted to maintain a resilient, sustainable and healthy force. We believe that resilient families will help create a more resilient force.”
The golf and gala fundraiser attracted 400 guests and raised more than $1.3 million last year. Few tickets are available for this year’s nearly sold-out event.
“It’s a well-attended and popular event because it’s got a really meaningful purpose,” Fenick said.
The golf event begins with breakfast and registration from 9-10 a.m., followed by the scramble golf tournament at 10:30 a.m. A cocktail reception and silent auction will take place from 4:30-6 p.m., with dinner, entertainment and a live auction starting at 6:30 p.m.
For event details, reservations and sponsorships, contact Carol A. Tuller at 619-344-0344, ext. 715, or email firstname.lastname@example.org.