It's a great day at Jose Perez and Associates. My name is Jose Perez. I'm here to give you an update for the month of September. There are three topics I want to share with you guys today. Number one, do you have PTSD for real estate? Number two, do you know what strategies you can use to pay off your mortgage early? And number three, have you gotten informed as to how to buy or how to sell?
Do you have PTSD for Real Estate?
So number one, PTSD for real estate. Do you have it? Here's what I mean by that. A lot of folks bought properties in '05, '06, '07, '08, and during the mortgage meltdown either had a short sale or had a foreclosure in the past and for that reason, they're a little bit scared about jumping back into the real estate market. Here's what I've got to share with you guys. This market we're in today is a whole lot different and even if we do go into recession in 2020 I want you to know that there is a big difference. Let me share this that economist at Zillow had to say "The housing crash during the Great Recession left a lasting impression...But as we look ahead to the next recession, it's important to recognize how unusual the conditions were that caused that last one, and what's different about the housing market today. Rather than abundant homes, we have a shortage of new home supply. Rather than risky borrowers taken on adjustable-rate mortgages, we have buyers with sterling credit scores taking out predictable 30-year fixed-rate mortgages. The housing market is simply much less risky than it was 15 years ago." It's also predicted that if we do go into recession, it's going to last a lot less time than what it did last time. Lastly, if you were to look at this chart and look at the last five recessions, three out of the last five recessions, property values went up. And I continue to say that because the last time that the property values went down during a recession, remember the real estate and mortgage industry were the cause of that recession. So we don't expect that to happen again.
Payoff your mortgage sooner!
Now on a much brighter note, let's talk about paying off your mortgage. Did you know that 37% of Americans have a paid-off house? No mortgage. So what I thought about was sharing with you guys some of the strategies that I'm using, some of the strategies that other folks are using in regards to paying off their house fast and as soon as possible. So one of them, for instance, is getting yourself on a biweekly payment. The second strategy is using a home equity line of credit, both either a second or a first mortgage. And third, knowing the difference between a daily accrued interest and an amortization schedule. If you're interested in paying off your mortgage soon or faster than the 30 years, please give us a call so we can do a one on one strategy session.
Are you well informed about real estate?
Lastly, I read an interesting quote with Albert Einstein and this is what it says. "If you can't explain it simply, you don't understand it well enough." That just really reminded me of how important it is to make an informed decision. So what we do is every quarter we pull out our new buyer and seller guides and our fall buyer and seller guides are now available. You could download them in the link below or go to our website to download them. But guys in a shifting market, especially a year where you're going to have presidential elections, it's really important to know what you're doing when it comes to real estate and hopefully you can see that we take our time to study the market so that we can share it with you guys. And that way we can make an informed decision that's best suited for your family.
If you're looking to buy, sell, or invest in real estate between LA and Palm Springs, give us a call. My number is (951) 444-5811 or visit our website www.joseperezandassociates.com.