Roger Ingbretsen has more than three decades of operational and leadership experience, Serving on USAF active duty for twenty-six years, he then worked for high-tech companies for nineteen years before starting his leadership coaching and organizational consulting business. Roger has held positions as a project manager, new product program manager, marketing and sales manager, corporate training and development manager, production manager, director of material, director of quality, director of executive development, and vice president of operations. Roger has a Masters Degree in Organizational Leadership, from Gonzaga University, a dual undergraduate degree in Economics & Business Administration, and an AA degree in Business. Roger is a member of the International Coaching Federation, has completed many professional training programs attaining certifications in the Harvard Law School “win-win” negotiation, Center for Creative Leadership “360-Degree Feedback” process and “Coach the Coach” program, Zenger Miller “Team Training Certification” and “Executive Coaching” from the Professional School Of Psychology, California. He is also a qualified administrator of the Myers-Briggs Type Indicator personality inventory. He is very knowledgeable in the area of “workforce development” currently conducting extensive research of recruiting and retention issues with a focus on generational problems. Visit his web site at www.ingbretsen.com.
Archive for Safe High Return Investments Orange County
The Next Crisis In The Perfect Storm â Unfunded Retirement Accounts
Posted by: | CommentsSafe High Return Investments Orange County
One financial area not receiving media attention in our present economic situation is the large deficits in federal, state and local retirement accounts. In fact the silence is almost deafening. According to the Pew Center on the States, “state government employee pension plans nationwide alone, have racked up nearly $360 billion in unfunded pension liabilities.” Research indicates there is also in excess of $380 billion in unfunded liabilities for other retirement benefits, including health care.
Both political parties have blamed unfunded pension liabilities on factors outside their control, such as lost tax revenue and the stock market downturn. Sagging returns have not helped pension investment portfolios, but they account for a fairly small portion of the problem. Many states have been diverting billions in pension payments to other state spending year after year, digging the hole deeper.
Politicians and administrators at all levels of government have “guaranteed” generous benefits, while pushing the costs onto future generations of taxpayers by failing to fully fund the pensions. The Congressional Budget Office estimates that in the past 15 months, and most notably in the past few months, employee retirement accounts have lost $2 trillion in value. By law, the trillions lost in public pension obligations must be paid out… and taxpayers will be forced to foot the bill.
While on vacation last spring in the Napa wine country of California, my wife and I listened in disbelief as the local news announced that the city of Vallejo had filed for bankruptcy. This was as a direct result of the more than generous retirement benefits paid to its employees. We should not have been surprised as the same thing has happened in the past in Orange County and San Diego. Many other municipalities across the nation are facing this same scenario.
It will be interesting to see how this plays out with States needing billions just to keep operating day to day and the millions of government employed baby-boomers getting ready to retire. With the high unemployment, personal debt running at an all-time high and high personal and property taxes, where will the states get the money to pay retirees? Where will the federal government get the funds to satisfy social security, Medicare and the unfunded retirement obligations?
There does not appear to be a definitive or even an estimated amount that the federal, state and local governments are short, in funding retirement accounts. The collective figure is definitely much bigger than the stimulus package just past and signed into law. Add to the government shortages those of the private sector, the future does not look good for those retired or thinking of retiring.
If you are retired or planning to retire in the next few years, contact the agency or your retirement account administrator; find out what condition the funding is in with regard to future retirement disbursements. This may put your mind at ease or cause you to save more of “your money for your retirement.” Additionally, you should contact your local, state and federal representatives and communicate your concern. Possibly suggest they do not pass more spending bills until all unfunded liabilities are covered.
Safe High Return Investments Irvine
How Raising Conforming Mortgage Limits Would Impact California Real Estate
Posted by: | CommentsSafe High Return Investments Orange County
Fannie Mae and Freddie Mac, two housing finance companies that have the implicit backing of the United States government, presently limit the mortgages they buy in the lower 48 states to a maximum size of $417,000. Alaska and Hawaii loans can be as high as $625,500. They also have a number of other requirements such as documented income, employment verification, and many others. A loan that does not meet the strict guidelines is considered to be non-conforming and is not eligible to be purchased by Fannie Mae and Freddie Mac. This includes all “jumbo” mortgages which are mortgages greater than $417,000. Loans are certainly available for these borrowers, however, it must come from other sources of capital such as banks, credit unions, and mortgage companies that often sell large pools of mortgages to investors. Historically, these loans would require rates to be perhaps ¼% higher than conforming rates. However, as investors lost a lot of money investing in mortgage backed securities that ended up being of poor quality, they immediately required higher rates of return on new mortgages. Now, jumbo loans are averaging about 1% higher interest rates than conforming mortgages.
Some politicians and regulators feel that by raising the loan size limit placed on Fannie Mae and Freddie Mac to as high as $729,500 in high cost areas, the value of property would be positively affected, especially in high cost states like California. This is virtually an economic certainty. Residential real estate historically sells based on debt ratios. Buyers were expected to spend no more than 30-40% of their gross income on housing. As such, any drop in rates would yield more buying power for each buyer that was taking out a loan. With a lower interest rate, a person can pay more for a house yet keep the same monthly payment. Giving buyers and current homeowners who want to refinance the access to lower cost capital will serve as an offsetting factor to downward price forces such as too much supply, higher levels of foreclosures, or home prices that don’t reflect local incomes. The markets most affected by an increase in conforming mortgages would include: San Diego, San Jose, Riverside, Orange County, Los Angeles, San Francisco, and Sacramento.
The downside of raising the limits should also be considered. For one, if you cause the value of real estate to increase based on lower interest rates, you make housing less affordable to people like cash buyers that don’t care about obtaining a loan. Additionally, Freddie Mac and Fannie Mae have faced a number of operational and accounting problems in recent years, and they also do not have a history of expertise in the jumbo loan market. Finally, you need to ensure that you are not heavily focused on the size of conforming loans while ignoring other factors such as attracting additional investment capital to the mortgage backed securities market or dealing with people that simply cannot qualify for a loan in the house they are in because they have negative equity or do not have the income to justify owning the home.
Safe High Return Investments Irvine
Why Should You Take Advantage of the Housing Tax Credit Program?
Posted by: | CommentsSafe High Return Investments Orange County
As many potential homebuyers know, the American Recovery and Reinvestment Act of 2009 was revised and expanded beyond what was offered in 2008. The housing tax credit established in 2008 was a credit that functioned much like a no-interest loan which had to be repaid in 15 equal, annual installments beginning in the 2010 income tax year.
The housing tax credit for 2009, which is claimed by using form 5405, allows for an increase up to $8000 for purchases made before December 1, 2009. The bonus is that the credit doesn’t have to be paid back as long as the home remains the taxpayer’s main residence for three years following the date of the purchase. So, the housing tax credit is a true credit.
According to the IRS, “First time homebuyers represent a significant portion of existing single-family home sales. The expansion of the first time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.”
There are a couple of guidelines that buyers need to be aware of for the tax credit program, such as that the credit begins to phase out for taxpayers whose adjusted gross income is $75,000 or $150,000 for joint filers. Taxpayers are allowed to claim 10 percent of the purchase price up to $8000, or up to $4000 for those married but filing separately. So for the market in Southern Orange County, any home valued over $80,000 could qualify for the full housing tax credit amount….which is just about any home in our market!
This housing tax credit works nicely with the FHA financing guidelines to provide homeowners a perfect opportunity to step into the current market. For an FHA loan, you do not have to be a “true” first time home buyer to take advantage of the tax credit program. To qualify, you cannot have owned real estate in the past three years and the property that is being purchased must be owner occupied. The down payment requirements for FHA financing are currently lower than the requirements for the national conforming loans, as low as 3.5%. Additionally, in the Orange County, California and Laguna Beach Real Estate Market FHA financing can go as high as $729,750.
Credit requirements for FHA financing may be more favorable than you think. Back in the day, the processing of FHA loans was inefficient, which was part of the reason that the Alt-A and subprime lending market was born. A combination of non-prime credit standards and competition in the market brought more efficiency to borrowers that required these loans. Currently, an FHA loan amount up to $417,000 requires a credit score of 580; an FHA loan amount over $417,000 requires a credit score of 620. Terms and qualifications are different from lender to lender, so be sure to shop around for the best loan scenario for your current financial situation.
But FHA is not the only way to go. There are conforming, and high balance conforming loans available to homebuyers as well. These loans will typically require a larger down payment such as 10% down on a single family residence in the conforming loan range, or as much as 20% down with a high balance conforming loan. As a side note, the high balance conforming loans, with available amounts up to $729,750 is currently supported by the government and set to expire December 31, 2009.
So what does all this mean for you? There is evidence of excitement and movement for listings and sales that fall into the FHA and conforming loan range. The area’s real estate market is at long last exhibiting signs of a gradual but sustained recovery while continuing to favor buyers in search of the best-priced buying opportunities. In true “supply-and-demand” fashion, the region remains in a solid buyers’ market, allowing first time homebuyers to take advantage of the housing tax credit as well as favorable prices and interest rates.
So how do you know when to get into the market? For starters, you can request a Market Snapshot Analysis Report.
Taking advantage of opportunities, such as the housing tax credit, when others are shying away from a market is how the rich get richer. Right now, buyers see an opportunity to make a real estate purchase that will give them a return on their money better than what other forms of investments may offer. Buyers understand that a purchase today, with the favorable home values and financing options, could allow for a return on their money of well over 8% per year which is better than the ROI on many other types of “safe” investments today. By putting pen to paper and making sense of the opportunities available, it can be easier to put fears aside.
Ready to get the latest information on market trends? Go to: Getting the right information on the housing tax credit and market trends from a Real Estate Expert that has indepth knowledge of the Laguna Beach Real Estate Market and the South Orange County Real Estate Market, as well as the integrity to put your interests first is important. Hillary Caston is such as agent. Her no-nonsense style and exceptional negotiating skills have earned her the reputation of the “go to” person for intelligent real estate advice. Visit her site at: http://www.TheCoastalPropertyExperts.com to see all the latest available properties.
Safe High Return Investments Irvine
Oc Real Estate: Still Gaining Ground
Posted by: | CommentsSafe High Return Investments Orange County
Across the country investors have been trying to guess what the fluctuations in the real estate market will mean to their valuable investments. There seem to be a number of theories as to what the market will be doing in the coming months, but then again that is just speculation. To fully comprehend what is happening in the national real estate picture one needs to look at it from a larger perspective. Over the last 10 years real estate was growing like a snowball rolling downhill. There seemed to be no end in sight for this market and investors and home owners alike enjoyed a huge jump in their property values. Unfortunately, as things tend to do the market has seen a dramatic change that for a while has everyone asking if the bottom had completely dropped out of the market. Saying that this was true is really jumping the gun and failing to look at things from that broader perspective.
What we are really seeing here is more of a market correction from the years of rapid inflation. There was bound to be a point where the number of buyers dropped below the number of available homes. Now that this has happened the market is straightening itself out and returning to a more average and even state. Now this does not mean that homes are losing value, merely that the rate of inflation has slowed down and homes are now selling for closer to what they are actually worth. for many years the high demand for homes inflated their values to amazing proportions and sellers and investors easily got used to that fact. As with any rapid increase in the value of anything, the leveling off of that increase can cause pandemonium and a good deal of guesswork as to what is happening.
The truth is that real estate in the major areas of popularity has retained that popularity and is still showing an increase although it is not nearly as dramatic as it once was. Take Orange County as an example. This is an area that saw immense growth and huge inflation on property values. Over that last year the average property in San Clemente has appreciated over $130,000!! So don’t despair, properties are still gaining in value and investments are still earning top dollar. One simply needs to be a bit more patient and less prone to jumping to conclusions!
Drew Hartanov & The Hartanov Team are the elite choice for Orange County real estate. Drew’s attention to detail and professional manner are essential tools in the Hartanov Team’s quest to bring the best in real estate service to buyers and sellers in Orange County. Contact Drew for more info or visit the team online at www.localrealestateteam.com
Safe High Return Investments Irvine
Orange County Real Estate, the Time is Now
Posted by: | CommentsSafe High Return Investments Orange County
Orange County offers interested buyers, plenty of real estate options. There are tons of choices when it comes to the kind of home you are interested in. Some of the different choices for buyers are luxury home, condominium units, move-in ready homes, modular homes and much more. Modern home designs offer comfort, space and interesting features not included in homes in the past. For example, green building is a popular option these days and new homes are including energy efficient features. This not only gives you a chance to do your part to be kind to the environment but as a bonus will reduce the resident’s monthly utility bills.
Modern home designs are upbeat and reflect an urban appeal. The latest in building materials are used and this gives residents new benefits than were never seen in earlier constructions. They are ideal for modern-day living and offer lots of amenities and conveniences to residents.
Making a real estate investment in Orange County can be highly beneficial because your investment is sure to rise in value in the years to come. Experts are talking about the real estate market bottoming out soon. This means the value of homes are beginning to stabilize. There are other benefits too in making an investment into home property here.
You can deduct your mortgage interest in full on your tax returns, provided your mortgage balance is less than your home price. Interest payments are considerable amounts and this deductible will give you considerable relief. Taxes paid on real estate property, which is either a first home purchase, or a vacation home can be fully deducted for income tax payments.
If you are interested in buying a home for the purpose of letting it out for rent, be sure to buy in locations where there is a high demand for home rentals. Such locations are situated around business centers, offices technology center, corporations, and universities. People working here will find it easy to commute to their offices from their homes and so will be on the lookout for rentals.
Paul is a principal of NewHomesSection.com. Search Orange County builders, Orange County real estate and new home Orange County today!
Safe High Return Investments Irvine