Manhattan Beach

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Hermosa Beach

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North Redondo Beach

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South Redondo Beach

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El Segundo

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Summary:In years past, February has been an important month for real estate sales. It has always been a great time to get your home marketed and usually equates to quick sales. With this year’s market, we are seeing a slower turnaround in the homes that are for sale. For example, the number of homes that has sold in past February months has averaged much higher and the pricing much closer to the asking price. What I’m seeing as your professional in the streets is a return to conservative investing on the part of buyers. They are no longer rushing out to purchase a home for fear that someone else will buy it. This ultimately is a good thing for everyone. If buyers make really thoughtful choices about what they want and they are honest with themselves about their financial situation and they are looking to be in a home for 5+ years, then they are more likely to be happy in their decision and less likely to second guess their decision. Everything goes in cycles. Investment is a risk, but over time, real estate has proven to be the strongest of investments a person can make. Many times, real estate will average a higher return than other more volatile investments. This is a great time to make a deal and really enjoy looking for your new home.Current Number of “Active” Properties on the Market:Manhattan Beach: 172Hermosa Beach: 97North Redondo Beach:163South Redondo Beach:127El Segundo: 41 

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Scenario #1: Higher Purchase Price, Lower Interest Rate$1,000,000 Purchase (20% Down Payment)           

1st TD $800,000@6.0%           $4,797.96           

Taxes                                       $1,041.67           

Total                                       $5,839.63

After Tax                                $4,125.46 Assuming 33% tax bracket

Principal                                  $9,575.52        1^st Year

Interest                                    $48,000           1^st Year

Scenario #2: 10% Price Reduction, 1.5% hike in Interest Rate$900,000 Purchase (20% Down Payment)

1^st TD $720,000@7.5%            $5,035.51

Taxes                                       $937.50

Total                                       $5,973.01

After Tax $4,124.26 Assuming 33% tax bracket

Principal                                  $6,426.12        1^st Year Interest                                    $54,000           1^st Year

As you can see from the above scenarios, the difference in monthly payment would only be $1.20 more per month (after tax). However, after the first year, you would have $3,150.00 more in equity if you bought today. As the years go on, the amount you pay towards your principal would increase, and the amount you pay towards interest would decrease, making it even more advantageous to buy in today’s market. Please give me a call if you would like further detail or a more specific scenario.

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Manhattan Beach

© Brinette Holdren - visit sellingbeachhomes for more great content. 

Hermosa Beach

© Brinette Holdren - visit sellingbeachhomes for more great content.

North Redondo Beach

© Brinette Holdren - visit sellingbeachhomes for more great content.

South Redondo Beach

© Brinette Holdren - visit sellingbeachhomes for more great content.

El Segundo

© Brinette Holdren - visit sellingbeachhomes for more great content.

Summary:

The significance of list price over sale price is that buyers were able to negotiate a lower sales price than the

sellers were asking for their properties. Also, this means that it is a buyer’s market and a great time

to make an investment in real estate.

Current Number of “Active” Properties on the Market:Manhattan Beach: 157Hermosa Beach: 95North Redondo Beach: 154South Redondo Beach: 137El Segundo: 41 

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(a) A pro forma operating budget, which shall include all of the
following:
   (1) The estimated revenue and expenses on an accrual basis.
   (2) A summary of the association’s reserves based upon the most
recent review or study conducted pursuant to Section 1365.5, based
only on assets held in cash or cash equivalents, which shall be
printed in boldface type and include all of the following:
   (A) The current estimated replacement cost, estimated remaining
life, and estimated useful life of each major component.
   (B) As of the end of the fiscal year for which the study is
prepared:
   (i) The current estimate of the amount of cash reserves necessary
to repair, replace, restore, or maintain the major components.
   (ii) The current amount of accumulated cash reserves actually set
aside to repair, replace, restore, or maintain major components.
   (iii) If applicable, the amount of funds received from either a
compensatory damage award or settlement to an association from any
person or entity for injuries to property, real or personal, arising
out of any construction or design defects, and the expenditure or
disposition of funds, including the amounts expended for the direct
and indirect costs of repair of construction or design defects. These
amounts shall be reported at the end of the fiscal year for which
the study is prepared as separate line items under cash reserves
pursuant to clause (ii). Instead of complying with the requirements
set forth in this clause, an association that is obligated to issue a
review of their financial statement pursuant to subdivision (b) may
include in the review a statement containing all of the information
required by this clause.
   (C) The percentage that the amount determined for purposes of
clause (ii) of subparagraph (B) equals the amount determined for
purposes of clause (i) of subparagraph (B).
   (D) The current deficiency in reserve funding expressed on a per
unit basis. The figure shall be calculated by subtracting the amount
determined for purposes of clause (ii) of subparagraph (B) from the
amount determined for purposes of clause (i) of subparagraph (B) and
then dividing the result by the number of separate interests within
the association, except that if assessments vary by the size or type
of ownership interest, then the association shall calculate the
current deficiency in a manner that reflects the variation.
   (3) A statement as to all of the following:
   (A) Whether the board of directors of the association has
determined to defer or not undertake repairs or replacement of any
major component with a remaining life of 30 years or less, including
a justification for the deferral or decision not to undertake the
repairs or replacement.
   (B) Whether the board of directors of the association, consistent
with the reserve funding plan adopted pursuant to subdivision (e) of
Section 1365.5, has determined or anticipates that the levy of one or
more special assessments will be required to repair, replace, or
restore any major component or to provide adequate reserves therefor.
If so, the statement shall also set out the estimated amount,
commencement date, and duration of the assessment.
   (C) The mechanism or mechanisms by which the board of directors
will fund reserves to repair or replace major components, including
assessments, borrowing, use of other assets, deferral of selected
replacements or repairs, or alternative mechanisms.
   (D) Whether the association has any outstanding loans with an
original term of more than one year, including the payee, interest
rate, amount outstanding, annual payment, and when the loan is
scheduled to be retired.
   (4) A general statement addressing the procedures used for the
calculation and establishment of those reserves to defray the future
repair, replacement, or additions to those major components that the
association is obligated to maintain. The report shall include, but
need not be limited to, reserve calculations made using the formula
described in paragraph (4) of subdivision (b) of Section 1365.2.5,
and may not assume a rate of return on cash reserves in excess of 2
percent above the discount rate published by the Federal Reserve Bank
of San Francisco at the time the calculation was made.
   The summary of the association’s reserves disclosed pursuant to
paragraph (2) shall not be admissible in evidence to show improper
financial management of an association, provided that other relevant
and competent evidence of the financial condition of the association
is not made inadmissible by this provision.
   Notwithstanding a contrary provision in the governing documents, a
copy of the operating budget shall be annually distributed not less
than 30 days nor more than 90 days prior to the beginning of the
association’s fiscal year.
   (b) Commencing January 1, 2009, a summary of the reserve funding
plan adopted by the board of directors of the association, as
specified in paragraph (4) of subdivision (e) of Section 1365.5. The
summary shall include notice to members that the full reserve study
plan is available upon request, and the association shall provide the
full reserve plan to any member upon request.
   (c) A review of the financial statement of the association shall
be prepared in accordance with generally accepted accounting
principles by a licensee of the California Board of Accountancy for
any fiscal year in which the gross income to the association exceeds
seventy-five thousand dollars ($75,000). A copy of the review of the
financial statement shall be distributed within 120 days after the
close of each fiscal year.
   (d) Instead of the distribution of the pro forma operating budget
required by subdivision (a), the board of directors may elect to
distribute a summary of the pro forma operating budget to all of its
members with a written notice that the pro forma operating budget is
available at the business office of the association or at another
suitable location within the boundaries of the development, and that
copies will be provided upon request and at the expense of the
association. If any member requests that a copy of the pro forma
operating budget required by subdivision (a) be mailed to the member,
the association shall provide the copy to the member by first-class
United States mail at the expense of the association and delivered
within five days. The written notice that is distributed to each of
the association members shall be in at least 10-point boldface type
on the front page of the summary of the budget.
   (e) A statement describing the association’s policies and
practices in enforcing lien rights or other legal remedies for
default in payment of its assessments against its members shall be
annually delivered to the members not less than 30 days nor more than
90 days immediately preceding the beginning of the association’s
fiscal year.
   (f) (1) A summary of the association’s property, general
liability, earthquake, flood, and fidelity insurance policies, which
shall be distributed not less than 30 days nor more than 90 days
preceding the beginning of the association’s fiscal year, that
includes all of the following information about each policy:
   (A) The name of the insurer.
   (B) The type of insurance.
   (C) The policy limits of the insurance.
   (D) The amount of deductibles, if any.
   (2) The association shall, as soon as reasonably practicable,
notify its members by first-class mail if any of the policies
described in paragraph (1) have lapsed, been canceled, and are not
immediately renewed, restored, or replaced, or if there is a
significant change, such as a reduction in coverage or limits or an
increase in the deductible, as to any of those policies. If the
association receives any notice of nonrenewal of a policy described
in paragraph (1), the association shall immediately notify its
members if replacement coverage will not be in effect by the date the
existing coverage will lapse.
   (3) To the extent that any of the information required to be
disclosed pursuant to paragraph (1) is specified in the insurance
policy declaration page, the association may meet its obligation to
disclose that information by making copies of that page and
distributing it to all of its members.
   (4) The summary distributed pursuant to paragraph (1) shall
contain, in at least 10-point boldface type, the following statement:
“This summary of the association’s policies of insurance provides
only certain information, as required by subdivision (f) of Section
1365 of the Civil Code, and should not be considered a substitute for
the complete policy terms and conditions contained in the actual
policies of insurance. Any association member may, upon request and
provision of reasonable notice, review the association’s insurance
policies and, upon request and payment of reasonable duplication
charges, obtain copies of those policies. Although the association
maintains the policies of insurance specified in this summary, the
association’s policies of insurance may not cover your property,
including personal property or, real property improvements to or
around your dwelling, or personal injuries or other losses that occur
within or around your dwelling. Even if a loss is covered, you may
nevertheless be responsible for paying all or a portion of any
deductible that applies. Association members should consult with
their individual insurance broker or agent for appropriate additional
coverage.”

1365.1.  (a) The association shall distribute the written notice
described in subdivision (b) to each member of the association during
the 60-day period immediately preceding the beginning of the
association’s fiscal year. The notice shall be printed in at least
12-point type. An association distributing the notice to an owner of
an interest that is described in Section 11212 of the Business and
Professions Code that is not otherwise exempt from this section
pursuant to subdivision (a) of Section 11211.7, may delete from the
notice described in subdivision (b) the portion regarding meetings
and payment plans.
   (b) The notice required by this section shall read as follows:
      “NOTICE ASSESSMENTS AND FORECLOSURE

   This notice outlines some of the rights and responsibilities of
owners of property in common interest developments and the
associations that manage them. Please refer to the sections of the
Civil Code indicated for further information. A portion of the
information in this notice applies only to liens recorded on or after
January 1, 2003.  You may wish to consult a lawyer if y