Archive for April, 2014
Contact us before you register with the builder we will accompany you to the registration and refund you anything over 1.5% offered by the builder.
About Cypress VillageWelcome to Cypress Village and the next generation of new homes. Everything families want and need to thrive now and in the years to come can be found within Cypress Village, the newest community within the Villages of Irvine®. Living here makes every day one great adventure, with resort-style recreation for the young and the young at heart, a convenient setting near your favorite places and acres of parks for fun in the sun. From Cypress Grove Park, the centerpiece of the village, to Floral Park’s sparkling pool and lush open space, your front door is just steps from boundless opportunities for sports, leisure and even a picnic with friends. The future Cypress Village Elementary School and recently opened Jeffrey Trail Middle School[READ MORE]
Measuring home price value requires a reliable metric and a reasonable benchmark. Most California markets are fairly valued -- at least for now.
I recently wrote that Rental parity establishes the value of residential real estate, but others use different metrics to measure value and affordability. If the metric is price-to-income, today's prices look inflated; if the metric is payment-to-income, today's prices look undervalued. So which metric is correct? In my opinion, they both are. Over the short term, it's impossible to ignore the payment-to-income ratio because it will establish the market equilibrium at any point in time; however, over the long term, it's hard to ignore price-to-income because interest rates will revert to the mean, so the long-term price-to-income ratio will also come back into alignment. Since the federal reserve drove mortgage rates down to record lows to[READ MORE]
Lenders only care about borrowers making payments, not borrowers continuing to live in houses purchased with the lender's loan money.
Many borrowers and housing advocates suffer the delusion that lenders act out of compassion when borrowers become delinquent. Borrowers and activists believe lenders should concern themselves with the borrower's unique life circumstances and allow delinquent borrowers to keep living in houses they aren't paying for out of compassion. Undoubtedly, some bank employees feel compassion for delinquent mortgage squatters, but banks are running for-profit businesses, not non-profit charities; therefore, bank policy must be focused on maximizing revenue and profit rather than providing social services for needy borrowers. I recently read Ayn Rand’s Atlas Shrugged, Ayn Rand's manifesto on objectivism. The book relates the story of the court battle, Amalgamated Service Co. v. Mulligan, in which the banker Midas[READ MORE]
Removing the supply of distressed homes created a supply shortage homebuilders responded to by providing more houses, hiring construction workers, and stimulating the economy.
If I understand Keynesian theory properly -- which is important to understand federal reserve policy -- inflating asset values through low interest rates is supposed to trigger businesses to expand because borrowing costs are so low, they can make marginal opportunities work. Business expansion puts people back to work, puts wage income back into the economy, and stimulates demand for more goods and services, which in turn creates more business demand, puts more people back to work, and so on — a virtuous circle. But how is that supposed to work when we already have overcapacity? If we aren’t making use of the property, plant, and equipment we have now, why would business expand? If capacity[READ MORE]
Population pressure and high home prices prompt homeowners to rent rooms and illegally convert garages to rental units, changing neighborhood character.
There goes the neighborhood. What happens when your neighbors start renting out rooms and converting their garages into makeshift apartments? How do these new neighbors behave? Do they park their cars in front of your house? Block your driveway? Do they party at all hours of the night? Do they behave like those degenerates and loser renters you were trying to escape? If developers were allowed to buy up properties in an existing neighborhood of single-family homes, demolish them, then put up a factory, it would turn the neighborhood into something other than what the remaining homeowners bought into. In short, it would ruin everything. In order to prevent problems like[READ MORE]