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  • WhyBuyNow?BecauseRealLifeIsntAGame.

    RealLifeisaboutRealDecisionsandRealFinancialOpportunities.

    RealEstateResourceServicescanshowyouhowtakeadvantageofthecurrentrealestatemarketandgetyouonthewaytoyournewhome.

  • WhyBuyNow? HOMESARESELLING!

    o 35,860NewandResalehousesandcondosweresoldinCaliforniainthemonthofNovember2009,down13.1%fromOctoberandup11.5%from32,163fromNovember2008.

    HOMESARENOWAFFORDABLE!o ThemedianpricepaidforahomeinNovemberwas$261,000,up1.6%from$258,000inNovember2008.TheyearoveryearincreasewasthefirstsinceJuly2007whenthe$478,000medianwasup0.8percentfrom$474,000ayearearlier.

    o PAYMENTSARELOW!

    o Thetypicalmortgagepaymentthathomebuyerscommittedthemselvestopayinglastmonthwas$1,106,58.1%belowthecurrentcycle'speakinJune2006.

    Source:MDADataQuickInformationSystems.Allrightsreserved.

  • $250,000$270,000$290,000$310,000$330,000$350,000$370,000$390,000$410,000$430,000$450,000$470,000$490,000$510,000$530,000$550,000

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    CALIFORNIA MEDIAN HOME SALES PRICE December 1968 - November 2009

    $10,000$30,000$50,000$70,000$90,000

    $110,000$130,000$150,000$170,000$190,000$210,000$230,000

    ,

    1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

    S

    A

    YEARSource: Empire Real Estate Group Inc. 2004-2006 and San Francisco Chronicle 2006-2008. *2009 November - www.dqnews.com/RRCA0208.shtm

  • WhyBuyNow?

    INTERESTRATESARELOW!o MortageLendershaveloweredinterestratestothelowestpointin50yearsbuttheyareSTARTINGTORISE!

    SPECIALLOANPROGRAMSHAVEBEENCREATEDFORRENOVATIONANDREPAIRS!o FinanceRepairstobecompletedafterthecloseofescrowintoyourhomeloan.

    o Loanamountsarebasedontheimprovedvalueofthehome.o Renovationcostsarespreadthroughoutthemortgageterm.o Allexpensesareincludedinasingletransaction.

  • 8.008.509.009.50

    10.0010.5011.0011.5012.0012.5013.0013.5014.00

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    NATIONAL MONTHLY INTEREST RATE STATISTICS From January, 1984 to January, 2010

    1/6/2010

    4.004.505.005.506.006.507.007.50

    83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Jan 2010

    I

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    YEAR

    Source: www.hsh.com/natmo83.html Interest rate as of January of each year.

  • WhyBuyNow? CALIFORNIASPOPULATIONCONTINUESTOGROW!

    o Californiahasbothhighratesofpopulationgrowthandaconstrainedsupplyofdevelopableland.

    o Forthatreason,homepriceswillclimbandwewillagainexperiencealongtermimbalancebetweensupplyanddemandinthefuturehousingmarket.

    OVER70%OFCALIFORNIASPOPULATIONGROWTHISDUETOBIRTHS!o Asfamiliesgrowintheirnumbers,sodotheirneedsforlargerhomes.o Marriages,employment,militarytransfers,promotions,retirementsetc.,allcontributetochangesinhousingrequirements.

    HOUSINGCONSTRUCTIONSTARTSAREATTHELOWESTLEVELSINCE1955!o Asthesupplyofavailablehousingdiminishes,demandincreasesandthecyclemovesupwardinvalueandpricing.

  • 25,000,000

    30,000,000

    35,000,000

    40,000,000

    45,000,000

    50,000,000

    POPULAT

    PROJECTED POPULATION GROWTH FOR CALIFORNIA

    POPULATION

    0

    5,000,000

    10,000,000

    15,000,000

    20,000,000

    1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

    ION

    YEAR

    Source: U.S. Census Website of State Population Facts

  • 7,500,0008,000,0008,500,0009,000,0009,500,000

    10,000,00010,500,00011,000,00011,500,00012,000,00012,500,00013,000,00013,500,00014,000,000

    SOUTHERN CALIFORNIA POPULATION GROWTH BY COUNTY From 2000-2040

    RIVERSIDE COUNTY

    SAN BERNARDINO COUNTY

    SAN DIEGO COUNTY

    LOS ANGELES COUNTY

    ORANGE COUNTY

    1,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,0005,500,0006,000,0006,500,0007,000,000

    2000 2040

    YEAR2020

    Source: Institute of Urban and Regional Development, University of California, Berkeley

  • COMPARE RENTING TO BUYING

    RENTING BUYING

    1. Your future is partly controlled 1. You control your future. by your landlord. 2. The mortgage interest and real

    2. You receive no federal tax benefit estate taxes are tax deductible. as a renter. 3. Rising home prices increase your

    3. You may experience rapidly increasing equity position. rent payments that are hard to budget for. 4. Every month you pay down your

    4. Rising rental costs may make you move loan, you are planning towards before you are ready. your retirement. 5. Any improvements you make benefits 5. A new home is NEW! You wont your landlord and not you. have large unexpected expenses. 6. Landlord may sell leaving you homeless 6. With a new home you have or little time to relocate. opportunity to select options and upgrades that suit your taste.

    MONTHLY RENT 1 YEAR 5 YEARS 10YEARS 20YEARS $1,500 $18,000 $90,000 $180,000 $360,000

    $1,800 $21,600 $108,000 $216,000 $432,000 $2,000 $24,000 $120,000 $240,000 $480,000

    Let us show you how to make your hard earned money work for you, not

    your landlord.

  • Purchase PriceAnnual Appreciation 5.00%

    After Year 1 X 5.00% = 20,745.00$ 435,645.00$ (purchase price) (apprec factor) (estimated appreciation) (estimated Value after 1 yr)

    After Year 2 X 0.00% = -$ 435,645.00$

    After Year 3 X 0.00% = -$ 435,645.00$

    After Year 4 X 5.00% = 21,782.25$ 457,427.25$

    After Year 5 X 5.00% = 22,871.36$ 480,298.61$

    After Year 6 X 5.00% = 24,014.93$ 504,313.54$

    After Year 7 X 5.00% = 25,215.68$ 529,529.22$

    Estimated Value After 7 years, based on historical data= 529,529.22$

    Less Original Purchase Price 400,000.00$

    Potential Equity Appreciation 129,529.22$

    Initial Equity Investment, based on 5% down 20,000.00$

    Potential Equity Gain= Appreciation + Initial Investment 149,529.22$

    Potential Income Tax Savings over 7 years 53,911.07$

    Initial Equity Investment + Potential Appreciation + Tax Savings 203,440.29$

    Monthly Investment, inc. interest and property tax 215,644.28$

    Actual Cost of Home Ownership over 7 years 12,203.99$ Not only did you live in you home for free for 7 years, you would have added

    this amount to your net worth!

    ESTIMATED FUTURE HOME VALUE

    414,900.00$

    435,645.00$

    435,645.00$

    414,900.00$

    435,645.00$

    457,427.25$

    480,298.61$

    504,313.54$

  • RENT VS OWN RENTER OWNER

    MONTHLY PAYMENT $_______________ PURCHASE PRICE $______________________________

    ANNUAL INCREASE $_________________ DOWN PAYMENT $______________________________ RENT

    YR 1 $___________ X 12 = $_____________ LOAN AMOUNT $________________________________

    YR 2 $___________ X 12 = $_____________ INT. RATE _______% TERM______________________

    YR 3 $___________ X 12 = $_____________ MO. INVESTMENT $_____________________________

    YR 4 $___________ X 12 = $_____________ PROP TAX ______% PER MO$____________________

    YR 5 $___________ X 12 = $_____________ APPROX. TAX BENEFIT _______________________%

    YR 6 $___________ X 12 = $_____________ MO SAVINGS $__________________________________ YR 7 $___________ X 12 = $_____________ PMT AFTER TAX $_______________________________

    TOTAL (LOSS) $_______________________ *ESTIMATED NET MONTHLY INVESTMENT AFTER TAX. MONTHLY INVESTMENT $_______________ X 12 =

    $_______________ X 7 YEARS = $__________________

    **TOTAL POTENTIAL HOMEOWNER GAIN $___________________________________

  • ESTIMATED FUTURE HOME VALUE

    PURCHASE PRICE $ ___________________________

    ANNUAL APPRECIATION _____________% YR 1

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