IS THE BIG ONE REALLY COMING?
By Monrovia Weekly
Published: Thursday, February 28th, 2008
No, I’m not talking about more properties going into foreclosure, as we have experienced that already, and that was man made by irresponsible lending. What I’m talking about, is another earthquake.
The San Andreas Fault is past due in letting us know that we are living in earthquake country. It is predicted that within the next thirty-years we could be experiencing a seven plus earthquake, and most of us are ill prepared for the after effects. I would be willing to bet that if you are not living in a major city, that there are fewer then 18 firemen on duty at any given time. There are also fewer police officers, where it is estimated that the average community have less than nine officers on duty at any given time.
Should there be a major quake, the responsibilities of these service peoples are to save multiple lives, and may not be able to assist a single person who may be having a heart attack or stroke. They must look for areas where there may be numerous people trapped or in danger. Therefore, it is very important that you identify those areas in which you have controlled.
Your local community may have an “Emergency Manager” who can provide you with a list of items that will assists you for a period of at least seven days. Such as how much water each person in the family will need. By the way, it’s not a bad idea to have at least a gallon of water in the trunk of your car at all times. How much non-perishable food you will need for at least a week; and don’t forget that hand held can opener. Many people may be prepared for their own survival, but what about their pets? Having a supply of food, water and medicines for them are also an item that must be taken into consideration.
Need more information? Drop me a line at mprltr@aol.com and I’ll send you additional information, but it is still best to contract your local emergency manager for pamphlets on earthquake preparedness.
ARE YOU GETTING CREDIT CARD OFFERS?
Here is another shock for many credit card holders. Have you noticed the increase in mailings from banks and credit card companies offering you a low or no interest credit card for one-year. It’s very enticing, but is it wise? For most, it is not a good idea because of the terms and conditions that are included in the offer. You must read the small print, the very small print. Should you be late with a payment, interest can be added from day one, and the interest rate can be excessively high, over twenty-percent or more.
If you don’t read the small print of these credit offers, and accept them, the housing problem will seem small in comparison. Lenders may be taking a loss with existing home loans, but they are making it up with credit card interest rates.
REAL ESTATE AGENTS FALL OUT
In a local newspaper I read that 52.1 percent of the real estate agents in that market did not make a single sale during 2007. Many of those agents are now selling autos, working as servers, clerks in department stores or wherever they can find employment. Certainly not a good situation for them, but it is a good condition for the professional agent who prepared for such a market.
When the market was really hot, just having a real estate license and being associated with a named real estate office was all it took to make a good living. Once the market changed, these people were ill prepared to wait for a resurgence of the market, which will happen – possibly by the end of this year. For the professional real estate agent, the fall out is a good sign, as what you may be reading or hearing in the press is not so for many of us. We are selling homes, condos and land.
The market was much more difficult after the first gulf war, where we experienced the same conditions of a weak market, with to many real estate agents and even tighter credit conditions. Right now, obtaining a loan is not as difficult as many may think. Interest rates are at an all time low, and property prices are lower then we have seen since 1991. It’s a good time for the investor and a great time for the first time home buyer, and the professional real estate agents are pointing that out to their buyers.
According to the California Association of Realtors®, some thirty-three percent of households in the state are able to afford their first home. During December of 2007, the median price of existing homes declined 16.5 percent over 2006. More important the price wars are among the sellers, not the buyers. One of the most important credit factor is that the annual income to buy an entry-level home has dropped fifteen-percent in the fourth quarter of 2007.
Louis Perlin CRS, GRI, Realtor, Syndicated Writer, Author, Professional Witness and Mediator can be reached at Marilyn Perlin Realtors, Inc., by calling (760) 327-8401 or by e-mail: mprltr@aol.com
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