PruCalVoices » Adam Chinn

Should I rent or buy???

Adam Chinn — Wed, 23 Nov 2011 02:13:28 +0000

Many people have always asked, “Should I rent or should I buy?”. My answer, it depends… Each person has their own situation and their own plans for their future. I have always wanted to own my own home and have therefore belived it is better to buy then to rent. Have I rented before, of course I have. Some people may not plan on staying in the same area or not know if they will or not.

With the recent market activity in the area I service, the rental market has slowly continued to raise and become more expensive while the value of homes have come down over the past years and have made buying more affordable. The interest rates combined with the lowering of home values provide an even stronger argument for home ownership.

Under what circumstances would it be better to own? Under what circumstances would it be better to rent? Lets look at some of the reasons for each case.

Buying

Purchase costs are the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and typical closing costs.

Yearly costs are recurring monthly or yearly expenses. These include mortgage payments, condo fees (or other community living fees), renovation costs, maintenance costs, property taxes and homeowner’s insurance. Property taxes, the interest part of the mortgage payment, and in some cases, a portion of the common charges, are tax deductible. The resulting tax savings is accounted for in each item’s totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payments becomes smaller.

Lost opportunity costs are tracked for the initial purchase costs and for the yearly costs. The former will give you an idea of how much you could have made if you had invested the down payment instead of buying your home.

Selling costs are the costs you incur when you go to the closing for the home you are selling. This includes the broker’s commission and other fees, as well as the remaining principal balance that you pay to your mortgage bank. “Proceeds from home sale” is the money that you receive from the person who is buying your home. This amount is equal to the value of the home that year and is shown as a negative number since it is not something that you spend money on, but rather, it is money you receive.

If your cumulative buying total is negative, it actually means you have done very well: you made enough of a profit that it not only covered the cost of your home, but also all of your yearly operating expenses.

Renting

Initial costs are the rent security deposit and, if applicable, the broker’s fee.

Yearly costs are the monthly rent and the cost of renter’s insurance.

Lost opportunity costs are calculated each year for both your initial costs and your yearly costs.

Leaving your rental is equal to the rent security deposit, typically returned to a renter at the end of a lease.

These are just some of the factors one may think about when trying to decide what is best for them, to rent or to buy. I reccomend a good realtor to help you through the process as well as a good loan officer to help you through the financial part of it. When you are ready to to talk, please feel free to contact me.

Written By Adam Chinn

www.AdamChinn.com

DRE#: 01844760

Prudential Realty

What is a Mortgage?

Adam Chinn — Fri, 11 Nov 2011 01:11:18 +0000

A mortgage is often refered to as the amount paid for real property monthly. It is a loan that is secured by real property through the huse of a mortgage note. Most commonly a loan is gotten through a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.

There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements.

Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower.
Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization.

Payment amount and frequency: the amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.
Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.
If you have any more questions or would like to know more about mortgages, feel free to contact me so I can answer any questions you may have or direct you to one of the many professionals I work with.

This blog was written by Adam Chinn.

Daly City Turns 100 Years Old!

Adam Chinn — Mon, 14 Mar 2011 18:57:12 +0000

The city of Daly City will be celebrating its 100 year anniversary on Tuesday March 22nd at City Hall, 333 90th Sreet. Daly City was born out of a small town known as Vista Grande 100 years ago. A color guard from the Daly City Police Department will make its debut, posting the flags of the United States, California, and Daly City to launch the celebration. Complimentary birthday cake will be served to honor Daly City on its milestone anniversary.

Click here for more information

Blog was provided to you by: Adam Chinn
Prudential California Realty your Home for Sale leader!

www.AdamChinn.com

San Francisco Giants World Series Trophy is Coming to Daly City

Adam Chinn — Thu, 17 Feb 2011 16:49:33 +0000

The San Francisco Giants World Series Championship Trophy is coming to Daly City from 11:00 a.m. to 1:00 p.m. on Friday, February 18, 2011. Giants fans can get an up-close view of the trophy when it comes to City Hall, 333 90th Street. This once in a lifetime opportunity is free to the public. Parking around the Daly City Civic Center is limited, so fans are encouraged to carpool or take public transit (SamTrans Route 121 stops at Edgeworth Avenue and 90th Street).

“For more than 52 years, our dedicated fans have supported us through thick and thin,” said Giants Managing General Partner and CEO Bill Neukom. “The trophy belongs to them as much as it belongs to us, and we want to thank our fans by extending the World Champions celebration throughout Giants country.”

Since this is a first for the Giants, they are not sure how many people will visit the trophy, but initial “viewing” parties were tremendously popular with fans. The Giants are going to do their best to accommodate everybody, but the lines will be managed on a first-come, first-served basis in whatever manner is necessary to keep the viewing on schedule and to ensure the safety of those in line. Of course, there are some rules to follow. Rule 1: You can’t touch the trophy. Rule 2: You can pose with the trophy. A photographer will take photos that can be purchased online. Only one photo per group is permitted.

In anticipation of the event, the Mayor and City Council are proclaiming February 18 as San Francisco Giants Day in Daly City. The Giants and the City of Daly City have enjoyed a cooperative partnership over the years. The Junior Giants, a program of the Giants Community Fund, helped build two baseball fields in Daly City – Bobby Bonds Field at John F. Kennedy School and Aaron Rowand Field at Panorama School. Daly City Youth are always well represented at Junior Giants Day at AT&T Park.

For more information about the Giants World Championship Trophy Tour, visit www.sfgiants.com and click on the “fans” tab.T

This information was taken from Dalycity.org.

This blog is brought to you by Adam Chinn, please feel free to check out my website, AdamChinn.com

Miss The Federal Housing Tax Credit? Here Is Your Chance!

Adam Chinn — Thu, 28 Oct 2010 23:37:39 +0000

Many people missed the federal housing tax credit that ended a few months ago at the end of April this year. I personally met a good amount of potential buyers that were interested in purchasing a home and according to them they were motivated by the possibility of receiving the federal housing tax credit. It seems that now that the tax credit is no longer being offered many of those people are no longer interesting in purchasing home or at least would like to wait a little bit longer. Why I ask?

During the time that the tax credit was offered, Jan 1st 2009 to may 1st 2010 the interest rates did fluctuate. From my research I found the interest rates were at a high of about 5.75% and a low of about 4.75%. During this period I’m not sure how many of the people who purchased homes were waiting for the rates to go down or if they were mainly focused on closing before the tax credit deadline, My guess is the latter.

Why is this important? I was curious to see what the difference between purchasing a home now and then would be. I took the average of the interest rate high and low during the time the credit was offered, 5.25%. The current interest rate is 4.25%. Here is the approximate difference.

With the interest rates down from before the monthly payment difference at the same purchase price may not seem like a lot of money from month to month, but in terms of purchasing power you can see that there is a clear advantage and reason to purchase now before the rates go up. A few other reasons, prices are still relatively low and there is still relatively a good amount of inventory to choose from. Three factors that are very important to timing when to purchase a home or to sell and make that move.

Written By: Adam Chinn

Adam@AdamChinn.com

AdamChinn.com

Daly City Annual Spook Parade

Adam Chinn — Fri, 15 Oct 2010 21:38:33 +0000

Daly City will be holding its Annual Spook Parade on October 30th from 12:30pm-3:30pm. It will be held at the Serramonte Shopping Center Court.

For more information check out the Daly City website here .

Written By Adam Chinn

Adam@Adamchinn.com

AdamChinn.com

San Bruno Fire Incident California State Automotive Association (CSAA) Claim

Adam Chinn — Sat, 11 Sep 2010 04:58:40 +0000

For anyone who is insured by California State Automotive Association (CSAA), there is a claim office open at the Lucky Store at Towne Center in San Bruno and also at the CSAA office on Hickey Blvd in Daly City.

Claim Number is (800) 922-8228

For CSAA’s website click here

13th Annual Business To Consumer Showcase September 11, 2010

Adam Chinn — Wed, 08 Sep 2010 19:44:17 +0000

Daly City will be having their 13th annual Business To Consumer showcase on September 11, 2010. It will be held at the Serramonte Shopping Center from 10am-4pm
For more information about this event, please visit this link www.serramontecenter.com.www.dalycity-colmachamber.org.WWW.Adamchinn.com

For other planned events check out,

Adam Chinn