Do you worry about your kids’ future, and this crazy world in which we live? What can you do?
REASONS WHY PARENTS SHOULD BUY A HOUSE FOR THEIR KIDS
A way to distribute the inheritance while you are alive to see it.
Senior care – You might need them to take care of you some day!
Affordability – If prices stay strong, buying a house could get out of reach for most. A salary of $100,000 can barely buy a $600,000 house with 20% down today – and you have to go to an outlying area to find a decent house for that money.
Appreciation – Even if price didn’t go up much, paying down the mortgage builds equity.
Rental income – Pay cash or low-leverage a house purchase and hand over to a property manager. The resulting positive cash flow will help pay their expenses while searching for a high-paying job.
Help to establish an investment portfolio, and to diversify their holdings.
Create a cap on kids’ housing expense.
Safety Net for emergencies – Ill-liquid, but that ensures it’s only used for catastrophic events.
Help the kids grow up. Owning real estate is for adults, and it inflicts responsibility.
Relieve pressure on kids from having to marry rich.
Help determine where the grandkids grow up.
Ensures they live in a quality area with good schools.
Taking care of the kids and grandkids makes grandma happy.
1953 Willy’s CJ3B. It had the original flathead four-banger engine that could crawl over anything. We changed that out for a Chevy 283V8. Rolled it two different times, no one killed. We built a big cake around it and cruised the last Fullerton homecoming parade like in Animal House (they cancelled the football program the next year). It was also the ride I was driving when I met my wife – I borrowed my dad’s car to take her to Bobs.
1958 Cadillac Convertible – with the big fins! One of the few decent things done by the Padres when they gave Trevor this one as they retired his number 51. The 1959 version is great too.
1969 Chevrolet Camaro SS Convertible – Indy Pace Car. A staple on favorite-lists everywhere and mine made a little more special when John Doe and Exene drove up in one when they played at Fullerton.
Our cruise around the world looking for similar real estate markets has to include a stop Down Under, where the auction format to sell homes and the lack of capital-gains tax on seller proceeds from the sale of their primary residence has to add extra juice. Add in some mortgage funny business….and well, these guys think there’s a bubble:
Bronte Capital’s chief investment officer John Hempton and economist Jonathan Tepper (founder of research house Variant Perception) toured suburbs across north-west and south-west Sydney to view housing developments and met with 20 mortgage brokers three weeks ago.
They discovered that mortgage brokers were advising them to lie on loan application documents about the deposit for a house and about income, the Australian Financial Review (AFR) reported.
Mr Tepper has also used charts to support his housing bubble theory.
When the pair asked banks to call their employer, ‘both reputable and disreputable brokers said banks rarely verified payslips,’ Mr Tepper wrote in a report.
They also encountered developers lying about units and houses being sold in the west, the ‘epicentre’ of the housing bubble.
To Mr Tepper’s surprise, some of Sydney’s poorest suburbs, such as Blacktown, Rooty Hill and Mount Druitt in Sydney’s west had properties selling from $500,000 to $700,000 – prices at least eight times the income of local workers.
‘The further west I went, the more irrational it felt. Lots and lots of supply and prices that bore no resemblance to construction cost and income of people around there,’ Mr Hempton told AFR.
There were more advertisements for deposit guarantees, where rather than putting a deposit down on a house you can take out an insurance contract that will pay the deposit if you default.
Another shocking revelation was that the verification of documents was sometimes done by Indian call centres, according to Mr Hempton.
On loan applications low-income earners were often offered discounts on the advertised mortgage rate of up to a one percentage point, increasing the vulnerability of the banks if there were a correction.
Mr Hempton claims they were ‘coached on how to get things through banks’ as opposed to banks having high quality underwritings.
In Mr Tepper’s report, he warns of sharp fall in Australian bank stocks and predicts falls in the Australian housing market of up to 50 per cent in Sydney and Melbourne and of about 80 per cent in mining towns.
These national pundits never look too deep into these topics. Instead, they just run with a sexy tagline and hurry back to their lunch martini.
Let’s qualify the inventory story by price range:
NSDCC New Listings Between Jan 1 and Feb. 22
$2,400,000 and higher
If you are trying to buy a home around here priced under $800,000, then yes, inventory is in short supply.
But there are plenty of choices above $800,000. Already this year there have been 27% more homes between La Jolla and Carlsbad priced over $1,400,000 that have hit the market than in 2015 – glut-watch ahead!
The daughters of wealthy Chinese Canadians who star in the reality show the “Ultra Rich Asian Girls of Vancouver” pursue modeling careers, carry Birkin bags, and sip on Veuve Cliquot. And they snap up million-dollar Vancouver homes with the same level of dedication that some of us use to shop for a new pair of shoes.
“It’s not that expensive in Richmond,” 24-year-old Chelsea Jiang told a local news channel shortly before beginning the show in 2014. Jiang, born in Ottawa, Canada, was looking to buy a single-family home in Richmond, part of the Vancouver metro area, in addition to a luxury condo she already owned. “It’s really cheap and I have a budget of $2 million.”
Many locals blame a massive influx of Chinese wealth in recent years for the city’s skyrocketing real estate prices, which have quickly grown to be among some of the most expensive in the world, and left all but the super-rich scrambling for housing. Others say the charge is racist, and complain that Chinese are being stereotyped as clueless and corrupt — a stereotype that isn’t helped by shows like “Ultra Rich Asian Girls of Vancouver.”
Many Americans in major cities may feel left out by rising housing prices. But these cities have nothing on Vancouver, where a shabby house – described by realtors as a “knock-down property” valuable only for the 32-foot-wide lot underneath – recently sold for nearly 2.5 million Canadian dollars, or $1.8 million in U.S. dollars.
The stunning rise in Vancouver’s home prices is a recent phenomenon. As Justin McElroy, a Canadian journalist, pointed out on Twitter last week, the average price of a Greater Vancouver home rose as much in the past six months as it did from 1980 to 2006. (When those figures are adjusted for inflation, the trend looks even crazier. In today’s Canadian dollars, the city’s housing prices grew by only roughly $150,000 between 1980 and 2006, but shot up by $375,000 in the last six months.)
Vancouver doesn’t have direct metrics on the role of Chinese or any other foreign money in the local market, says Yan — just a resounding sense that local real estate prices seem to move independently of the local economy and local wages. “In short, I’m searching for the “dark matter” in Vancouver residential real estate.”
Attitudes toward Chinese property purchases are mixed in Vancouver, which remains a relatively multicultural and tolerant city, with a substantial Chinese community. Still, some locals complain that foreign purchases are degrading the quality of life for others in the city, by driving up property prices and pushing all but the uber-wealthy out of the market. They claim that high property prices trickle down from the luxury market into the middle-income market and even to renters, as people of all income ranges are displaced into lower-quality housing.
Jim the Realtor is legit - I interviewed three brokers; he said list price should be $100,000 higher than the other two brokers; listed it with him and had all cash (no financing) offer in two days, five day contingency period, closing in two weeks - and it closed at his recommended list price. I could not recommend anyone more than I recommend Jim the Realtor.
When we moved to San Diego in 2005 we rented a big house on Mt. Soledad (La Jolla) with 180 degree ocean views for the same payment as a mortgage on a dump in Chula Vista. Clearly something was wrong. Yet, the media was full of the usual happy-talk nonsense, so I was glad to find Jim's blog. I've followed his honest assessments and data since.
We decided to sell and move to AZ at Thanksgiving. Dec. 1st we met with Jim to sell our home. We closed today (29 days later). Jim orchestrated a feeding frenzy -- we had 25 showings in 2-1/2 days, multiple offers, and sold for well over asking price. I'd say he earned his commission! We have owned and sold homes in 5 different States always using experienced, productive, full-time realtors. Jim outshines them all.
You don't decide to sell and close 29 days later over Christmas (with COVID lockdown) without some miracles. Donna was amazing at performing lots of those miracles and ensuring that everything was done right and on time. They are a terrific team with a very responsive and professional network.
Where do we begin..2020 has been a year for everyone. When COVID hit and shut down both my husband and my businesses, we were left with a mortgage and very little income coming in. We were stressed, scared and felt stuck. We made the hard decision to sell our home and move out of state. We contacted the Klinges' and spent a good hour going over what we hoped we could accomplish. Jim and Donna came over with comps in hand and suggestions on improvements to get our house ready for the market. It was overwhelming to think about, but Donna was there and one step ahead in every scenario. Basically we just approved what they suggested and Donna handled literally everything. We placed our house on the market and within the first day we had multiple offers well above asking price! We couldn't believe it. We were overjoyed! Jim countered the offers to weed through them, and everyone came back with way more. It was amazing, and we are ?? sure it was because of the staging and repairs the Klinges suggested we do.
Due to unforeseen dishonesty from the buyers lender, we hit a big hurdle when trying to close. We had already moved out of state and were shocked when three days before closing the lender dropped a bombshell on the buyers and us. However, Jim and Donna handled it like veterans, not afraid to play hard ball and represent their clients. After a few phone calls with us, and several between Donna and the lender, they had a plan B-Z to make sure we were taken care of. In the end we closed with even more money than we ever thought possible and with very little work from us. The Klinges handled this entire "2020" worthy event with the utmost professionalism and did everything in their power to not only make this as smooth as possible for us, but we also walked away with more money from the sale of the house than we ever hoped for. After working with Jim and Donna, you don't ever use anyone else. They are hands down the best team to represent you in any scenario.
Working with Klinge Realty Group was a great experience! They are very responsive, professional and knowledgable about the real estate market! I would definitely recommend Klinge Realty Group.
Jim and Donna Klinge made the sale of our condo extraordinarily easy. They know the market and gave us sound advice backed by details and very considerable experience, reflected both in the initial pricing and subsequent negotiations. They work together as a team and are always available to talk. We had a few challenges with our property and they were able to coordinate the resolution to everything, including items that I would not think would ordinarily be their responsibility to handle. They made the whole process effortless on our part. They are folks with high integrity and we cannot recommend them highly enough.
Review for Member: Donna Klinge
I cannot believe there are no reviews of Donna yet, ugh!! She is the secret sauce of the Jim Klinge/Donna Klinge combo! I will touch on Jim here, but Donna is why I'm so totally loyal to these two (no offense to Jim :)).
I consider myself a rather savvy buyer/seller. I've bought/sold 7 times in about 15 years. On the buy side, Jim is the PERFECT combo of: completely digitally savvy (he will pull data all day long until you feel comfortable with your chosen house, area, school district, anticipated appreciation rate...anything!), he's super well respected and known in the area by other agents, an amazingly cool but strategic negotiator, is totally devoid of desperation for a sale/commission, and more.
Then once you get into contract phase, Donna literally handles every last and final detail in a concierge-like manner -- totally shielding you from the daily back and forth, noodling and annoyances of the buyer's requests. She solves it ALL; it's miraculous what that woman accomplishes over and above what is even expected in a buy/sell transaction.
On the sell side, Jim and Donna do the same, but even moreso. Donna in particular truly takes everything off your plate: she'll manage getting the house painted, the carpets replaced, she'll go on site (as she Jim both did for me when selling our rental properties) to work with the renters and make sure the house is ready to show -- freeing me to have to take time off of work to do so. They work with A+ integrity, too, so you know you are serving all parties fairly and lawfully throughout.
A home purchase/sale is the most considered you'll ever make. HIRE A SAVVY AGENT, not a friend!, and get what you need out of the transaction. Jim and Donna are our agents for life.
Jim and Donna Klinge are by far the most professional, personable and responsive realtors I have ever worked with. They provide VIP concierge level service in every area of the process of selling your home. My home was marketed so successfully that we received an offer the day after our first and only open house. Thanks to Jim's pricing and negotiating, our house is now the highest sold in our community. Jim's vast experience means he has worked with several realtors and knows the market all over north county. Donna is AMAZING in processing everything in the transaction. She scheduled trades people to work on the house in preparation for the sale as well as the repairs needed before closing. She communicated clearly every step of the way about what would be happening. She took the weight off my shoulders for the whole process. I will always use Jim and Donna for my future real estate needs and I whole heartedly recommend them to anyone buying or selling a home.
Jim and the team at Klinge Reality are without a doubt the best in the business! Not only was Jim helpful and extremely knowledgeable, he was patient and determined to help me find my first home. Jim and his team have been in the business for many years, and it shows. Jim is a wealth of knowledge and was my biggest proponent despite the temperature of the competitive market. I ended up getting the perfect property in my dream neighborhood all thanks to Jim. From the day my offer was accepted, Donna was a real lifesaver. She was extremely helpful, responsive, and knowledgeable when it came to every minute detail, and held my hand through the process. As a first time home buyer I had no idea what the process would entail, but Donna curtailed every concern I came across and made the escrow process feel seamless. Jim and Donna provided me the best home buying experience, and I am very grateful for all they did for me. It was truly a pleasure to work with Jim and Donna and I am already looking forward to the next time we work together!
Review for Member: Richard Morgan
Richard is an amazing realtor! He has high integrity and genuinely cares about his clients and their needs. Richard paid close attention to what I was seeking in a home and was very patient in our search to find it. I would highly recommend Richard and will use him for future transactions. Truly a different kind of realtor experience!
Could not be happier with my experience with Jim and his team. He helped me sell a very unique and challenging property. Throughout the entire process he was always available, honest, transparent, trustworthy, and always put my interests as a seller first. A (rare) true professional! During close of escrow Jim went above and beyond to complete the deal. It would not have been possible without his experience, fantastic team, and pure dedication. Highly recommended!
Thanks Jim and Donna Klinge!