Charlotte’s San Francisco Real Estate Blog

CRIKEY, Folks!

Did anyone other than me wonder how a TRILLION DOLLAR financial injection, announced EVER SO QUIETLY (the type size in the New York Times alone was my first clue) happened without so much as a “Do ye mind if we just spend “double all of the Fed’s measures in the last year?” (Thank you New York Times.)

A few DUNDERHEAD (referring to meself here, not you, gentle reader) Observations:

1. A Trillion is a lot.

2. It will cause inflation. (Buckle Up)

3. Real Property is a hedge against inflation because it increases in value proportionately to the pace of inflation

4. This is going to help raise housing prices, along with everything else (see point #2)

5. At the same time, Mortgage rates are predicted to drop to below 5% this week

6. At the same time, housing prices are at an all-time low.

SUMMATION: Whether you have to rent out rooms, stack the neighbor’s kids ten deep, or keep the lights out, for the sake of all things sacred, GO GET YOURSELF A HOUSE OR AN INVESTMENT PROPERTY. Do not dare to whine about how you missed the boat if you miss this boat. I’m officially handing you a paddle.

To contact me, please visit my website, www.charlotteerwin.com

While not residing in that Red Rocks Cave where “Wile ‘E’ Coyote; Genius, lives, I do know a few things about money. One thing is that I will always live in a house, and not that cave. And I’d rather be enjoying the benefits of home ownership than paying someone else’s mortgage by renting.  It surprises me that no one talks about the EFFECTIVE YIELD of HOMEOWNERSHIP. Mutual Funds or Government Issued Bonds with TAX FREE status talk about actual and effective yields, once the tax savings are factored in. So, at the risk of repeating myself, let me tell you why you should quit worrying about finding the bottom of the housing market and buy a home or investment property. I will compare two people, both making $100,000 annually.

Person A Rents an Apartment for $3,000 a month. Annual Housing Cost: $36,000

Appreciation: NONE

Tax Benefits: NONE

Person B buys a single family home in San Francisco. Believe it or not, you can buy a great 2 bed, 1 bath home with a yard in a great neighborhood near public transportation for $499,000. They use an FHA loan. (Which are not, contrary to popular belief, only for lower income folks). They put 3.5% down, or $12,250, plus another $4500 in closing costs. Total Out of Pocket: $16,750.

MORTGAGE PAYMENT: $2,190

TAXES and INSURANCE: (INCLUDES Private Mortgage Insurance) $850

Monthly Housing Payment:  $3,040

Appreciation: assume no appreciation

TAX SAVINGS: Approximately $13,862

Annual Housing Cost* $22,618

WHICH IS BETTER: PAYING $36,000 and OWNING NOTHING, or PAYING $22,618 and OWNING A PROPERTY which will, as we know, increase in value if held over time.

My fantasy-life home was the stunningly-done 313 Duncan St. I say my fantasy-life because this charmer is $2,495,000 of fabulosity. As words do not do it justice, I will merely post the photos of this phantasmagorical home forewith. Needless to say, anyone interested in this home may contact me at charlotteerwin@zephyrsf.com.

HUGE $200K REUCTION!! Stunning Modern Victorian w/ Sophisticated Guest House. An 1800’s restored facade with modern interiors, the main home spans 3 lvls + top flr mezzanine w/ viewing terrace. Open flr plan on main lvl opens to pvt garden. Gourmet kitchen w/ marble counters, ss appls, pantry & bkfst bar. 4 bds [3 en-suite], 4.5ba, gas fp, radiant heating, hwd flrs, central sound, w/d hk-ups, 2 car sxs pkg, garden & patio. Guest house: sep entry, 1bd+loft /1ba, liv/din/kit, gas fp, sky lites

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