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Andy Block

Are you thinking. . . ?

Sep 9th, 2009
by Kathy Rain.
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Are you thinking. . . ?
“Maybe now is a good time to move up to a bigger home
in the neighborhood where I want to live…I can take
advantage of the low interest rates and home prices…But, I
won’t get what I want for my current home if I sell now…
So, maybe I should hold out for a price I think I could get
some day.”
But WHAT IF. . .
 You stay in your current home for the foreseeable future?
Your net worth at retirement would be
$5.7M.
 You sell now for $1,000,000, buy a new house for
$1,300,000 and reduce your lifestyle expenses* by
$400/month? Your net worth at retirement would
remain at $5.7M AND you would live in the
home you prefer.
*Excludes housing expenses, taxes and savings
 You decide to hold out for 5 years when you think you
can sell your home for $1,200,000 (vs. $1,000,000 today)
and buy a new house then for $1,550,000? Your
net worth at retirement would decline to $4.7M, a
difference of $1.0M.Are you thinking. . . ?
“Maybe now is a good time to move up to a bigger home
in the neighborhood where I want to live…I can take
advantage of the low interest rates and home prices…But, I
won’t get what I want for my current home if I sell now…
So, maybe I should hold out for a price I think I could get
some day.”
But WHAT IF. . .
 You stay in your current home for the foreseeable future?
Your net worth at retirement would be
$5.7M.
 You sell now for $1,000,000, buy a new house for
$1,300,000 and reduce your lifestyle expenses* by
$400/month? Your net worth at retirement would
remain at $5.7M AND you would live in the
home you prefer.
*Excludes housing expenses, taxes and savings
 You decide to hold out for 5 years when you think you
can sell your home for $1,200,000 (vs. $1,000,000 today)
and buy a new house then for $1,550,000? Your
net worth at retirement would decline to $4.7M, a
difference of $1.0M.Are you thinking. . . ?
“Maybe now is a good time to move up to a bigger home
in the neighborhood where I want to live…I can take
advantage of the low interest rates and home prices…But, I
won’t get what I want for my current home if I sell now…
So, maybe I should hold out for a price I think I could get
some day.”
But WHAT IF. . .
 You stay in your current home for the foreseeable future?
Your net worth at retirement would be
$5.7M.
 You sell now for $1,000,000, buy a new house for
$1,300,000 and reduce your lifestyle expenses* by
$400/month? Your net worth at retirement would
remain at $5.7M AND you would live in the
home you prefer.
*Excludes housing expenses, taxes and savings
 You decide to hold out for 5 years when you think you
can sell your home for $1,200,000 (vs. $1,000,000 today)
and buy a new house then for $1,550,000? Your
net worth at retirement would decline to $4.7M, a
difference of $1.0M.

Our friend and Lender, Andy Block of Opes Advisors poses a very good scenario and question that may be timely for you to think about.

“Maybe now is a good time to move up to a bigger home in the neighborhood where I want to live…I can take advantage of the low interest rates and home prices…But, I won’t get what I want for my current home if I sell now…So, maybe I should hold out for a price I think I could get some day.”

But WHAT IF. . .

 You stay in your current home for the foreseeable future?  Your net worth at retirement would be $5.7M.

 You sell now for $1,000,000, buy a new house for $1,300,000 and reduce your lifestyle expenses* by $400/month? Your net worth at retirement would remain at $5.7M AND you would live in the home you prefer.  *Excludes housing expenses, taxes and savings

 You decide to hold out for 5 years when you think you can sell your home for $1,200,000 (vs. $1,000,000 today) and buy a new house then for $1,550,000? Your net worth at retirement would decline to $4.7M, a difference of $1.0M.

The detailed analysis of the above scenarios revealed varying outcomes.  Reviewing the specific results gave a client the information needed to move forward with confidence. This is the power of integrating both the asset side and the debt side of your balance sheet.

Let us know if you would like to discuss specific situations or the various “what ifs” in life.

Through The Eye of The Financial Storm….

Oct 21st, 2008
by Kathy Rain.
No comments yet

Andy Block, a mortgage broker contact of ours, shared insights into how the media’s portrayal of the financial crisis makes it more difficult to place the markets into proper context.

Susan McHan, a colleague of Andy’s (CEO of Opes Advisors) recently appeared on ABC7′s The View from the Bay to discuss the current difficulties and the government’s moves to address them.

View the video here.

The Beginning of The End? One Mortgage Broker’s View…

Sep 23rd, 2008
by Kathy Rain.
No comments yet

A mortgage broker we work with, Andy Block, noted in a recent email to us that he believes that we’re looking at the “beginning of the end” of the credit crisis, and that the government has sent a strong signal that liquidity would not be a problem in the future. A few of his thoughts…

Watching the recent financial turmoil of Fannie Mae, Freddie Mac, AIG, Lehman Brothers and a few others has been unsettling, to say the least. On Friday President Bush proposed a comprehensive approach to stabilize the credit markets, including $700B for the purchase of existing mortgages from banks and other financial institutions, in an effort to shore up the economy. Additionally, the Federal Reserve and central banks worldwide have rapidly and radically expanded liquidity of the money supply. These actions are sending a powerful signal to investors in our financial markets that liquidity is not a problem!

There are now approximately 5 million homeowners delinquent on their mortgages or in foreclosure. With the government takeover of the largest holder of home mortgages, we (the U.S. taxpayers) now own Fannie and Freddie. In order to reach a stable housing market, lending at reasonable rates will most likely continue through 2009.

Is this the end of the crisis? No. But it is likely the beginning of the end.

The stock, bond and credit markets will remain volatile as the implementation of the government bailout is specified, agreed to by congress and acted upon. These actions are necessary to resolve the current financial crisis and begin building toward a stable and prosperous financial future.

It’s always interesting to learn the views of other real estate and mortgage professionals that are in the trenches of this challenging market. Learn more about Andy Block here.