Per a recent post on CNN Money, Vacation Home Ownership is on the rise.  Per Liz Westman, “Don’t listen to the naysayers. Rentals can cover your second-home costs if you’re careful when you buy and you follow these 3 simple rules.”

In Palm Springs, many people rent out their homes as vacation rentals.  The Palm Springs market is a popular destination for many travelers looking to escape, and wanting the comforts of a private home, as opposed to a hotel room.  Palm Springs draws from a number of states all over the country, in addition to being only two hours from Orange County, San Diego and Los Angeles.  Buying a second home in Palm Springs and renting it out, is a viable option for many.

Per the article, for a successful vacation home rental, here are the three basic tenents:

• Vacation homes need to be rented 15 to 17 weeks a year in many areas to break even. This estimate is based  on the assumption that one month’s mortgage payment would equal one week’s rental income in the peak season. More expensive homes would need to be rented longer. 
• Internet advertising is essential. You need to reach the widest possible audience of potential occupants to keep your place solidly rented.  The more sites you can post on, the better. 
• Owners need to cut out the middlemen. Management companies take anywhere from 10% to 60% of rental income, making positive cash flow impossible. Handling rentals and maintenance isn’t that tough, even long distance.

Many of my clients rent out their 2nd homes here in Palm Springs on a part time basis.   Let me help you find the perfect 2nd home, and I’ll be happy to share with you my knowledge of what is involved with making it a successful vacation rental. 

To read the full article, click here.

Got plans this weekend? If not, then hop in your canoe and head down to San Diego’s Hukilau this Saturday, for the premier of “Tikemenatary, in Search of the Lost Paradise World.”  Here’s the teaser below.

And for the true Tiki-Afficionado, why not get a condo at Palm Springs’ historic Royal Hawaiian.

A new listing just hit the MLS in Old Las Palmas, one of Palm Spirngs’ premier neighborhoods.

Here’s what the agent has to say about it:

“Wait ’til you see the original features in this mid-century gem: Stone fireplace, incredible tile work in showers, amazing original appliances in the party/pool room kitchen and decorative cement block on perimeter walls! Yes, she needs updating in places (you’ll have a ball picking your favorite foil wallpaper pattern and color), but WOW, what potential! Each bedroom has a private bath (two bedrooms are off the party/pool room wing) and the enormous master has two baths and giant walk-in closet. Located on a corner lot in Old Las Palmas, the L-Shaped home wraps around the pool on 2 sides allowing for uninterrupted mountain views.”

Living Room

Kitchen

Atomic Electric Stove (Covered)

Stove - Open

1960s Jenn-Air logo

Retro Ovens

Unique Bathroom Tile Details

Why don't they make yellow sinks anymore?

Stone inlay detail

Mosaic tile detail

I absolutely LOVE this tile installation!!

Pool and view

Unique decorative masonry wall

Offered at $795,000    Want this retro martini pad for yourself? Please call or text me at 760-285-8559 for a private showing.  Or email me at paulkaplanre@gmail.com for more information.

 Listing courtesy:  Windermere Real Estate 

Financing a home after foreclosure is possible for most homeowners.  Those who default on their mortgages due to economic hardships, such as job loss, may receive approval for another mortgage in as little as two years, while it may take more than seven years for strategic defaulters to be approved.

Lenders utilize several methods in determining whether to grant mortgages, including the amount of money borrowers have saved; employment histories; and payment history.

According to the chief economist with the Mortgage Bankers Association, lenders may be more willing to finance a mortgage for a borrower who defaulted on their mortgage as a result of factors beyond their control.
Some homeowners who strategically default—intentionally not meet their mortgage obligations although they have the financial means to do so—assume they can raise their FICO scores by paying their others bills on time.  However, most future loan underwriters will scrutinize their records very closely, and if they determine the borrower strategically defaulted on their previous mortgage, the repaired credit score will not overshadow the walkaway.

Although not impossible for strategic defaulters to finance another home purchase, it likely will be more difficult.  Lenders may ask for down payments of 30 percent or more to provide sufficient collateral to enable the bank to recoup most of its money in a foreclosure.  These borrowers also may be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive.

To read the full story, please click here.

June 22 – 28-  Mark your calendars for the Palm Springs International ShortFest

Now in its 16th year, the Palm Springs International ShortFest showcases over 300 short films from more than 40 countries, with a library of more than 2,700 films available to film buyers, industry and press in its concurrent Short Film Market. Festival events include nightly receptions, seminars, master classes, and scheduled ‘one-on-one’ meetings with industry experts and filmmaking professional. Designated by the Academy of Motion Picture Arts and Sciences as an award-qualifying Festival and accredited by the International Short Film Conference, the Palm Springs International ShortFest and its Short Film Market, are the largest and most prominent short film showcase in North America.  For more information on the Festival, visit www.psfilmfest.org.

I found this interesting article about Palm Springs real estate today:

The Palm Springs real estate market, along with the rest of the Coachella Valley real estate market, seems to be edging towards recovery, although it will be gradual and difficult. According to a May 14, 2010 article in the Record Gazette, “In the year since Beaumont initiated an economic stimulus plan to spur development, there appears to be evidence that its incentives are working. While the majority of Riverside County saw the number of permits for construction of new single family homes drop 10.6 percent last year, Beaumont boasted an increase of 16.7 percent over its 2008 volume, according to statistics presented at the May 4 city council meeting.” The article by David James Heiss continued to note that “In 2009, there were 350 permits for single family residential units – the highest number of any city in the country, followed by Meifee, which issued 325, and Temecula, with 323.”donovantalk.com, Palm Springs real estate market | DonovanTalk.com, May 2010

You should read the whole article.

Many Palm Springs buyers, especially first-timers, hope to purchase a foreclosed property at a bargain price.  While purchasing a foreclosed home can be a wise choice for some buyers, it is important that buyers understand the differences in buying at different stages of foreclosure and be prepared to take on the challenges typically associated with each.  If you are looking for a property in Palm Springs, this will help explain foreclosures.
 
MAKING SENSE OF FORECLOSURES

There are three basic stages of foreclosure in California: Pre-foreclosure, trustee’s sale, and repossession, often called an REO or real estate owned by the bank.

Pre-foreclosure homes are in the foreclosure process, but have not yet been auctioned.  Owners of pre-foreclosed homes often try to sell the properties because they are “underwater,” meaning they owe more on the mortgage than the home currently is worth.  (often referred to as “SHORT SALES”). Many homeowners attempt to sell via short sale, where the lender must agree to accept less than the amount owed on the mortgage.  Buying at this stage of foreclosure often is a complicated and slow process.  This process may often take over 1 year in some cases, and not end up in a sold property.  On average, a very small % of short sale deals every actually come together.   However, buyers of pre-foreclosed properties often are given the opportunity to inspect the home prior to purchasing, whereas this is not always the case when buying at other stages of foreclosures.
The second basic stage of foreclosure is the public auction at a trustee’s or foreclosure sale.  Homes in this stage often are well priced, but also come with challenges to buy.  These homes may not be available for inspection and buyers may later discover the property needs numerous repairs.  As a result, many of the homes at auction are purchased by investors and contractors who have experience working with homes needing numerous repairs, or taken back as REO by the foreclosing lenders.
If a home does not sell to a third party at the trustee’s auction, the bank takes the property–the final stage of the foreclosure process. Although homes in this stage typically do not offer buyers the best prices, buyers generally can perform a thorough inspection of the property prior to closing.
To read the full story, please click here.

Are you looking for a foreclosure property in Palm Springs to purchase? I have a vast amount of experience dealing with foreclosures and would be happy to help you with every step of the process. Look forward to hearing from you!

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS

I put together a quick search by price for those looking for a mid-century home in Palm Springs.  Pick your price range, and click the appropriate link-  and you’ll see the current homes for sale in Palm Springs.

Quick Mid-century Home Searches:

< $100,000
$100,000 to $200,000
$200,000 to $300,000
$300,000 to $500,000
$500,000 to $800,000
$800,000 to $1,000,000
$1,000,000 to $2,000,000
>$2,000,000

Located at the Canyon Country Club Golf Course at 1100 Murray Canyon, in south Palm Springs, Leon’s is a favorite of many locals-  huge room with walls of glass overlooking the golf course and mountains, provides a gorgeous setting for brunch, lunch or dinner. Live music, and huge bar too.  Reasonable prices, great service too-  one of my Mom’s favorite places to eat!!

Sunday Champagne brunch for $15 is always packed with the local crowds…worth checking out!

Below are the latest stats for the Racquet Club Road Estates neighborhood in Palm Springs.   The trend is showing increased inventory however, the prices have been going up over the past 6 months. 

(Median sales price from 10/09 to 1/10 was $280,000.  Median  sales price for the last 3 months was $302,000)

These stats show what’s been going on in the past 3 months:

Total sales:  8

Total active listings:  24

Months considered to take to absorb all the listings:  8.99

Median Sales Price:  $302,000

Median days listing are on the market:  56

Median sales price as a % of list price:  96.25%

For more detailed info, see the chart below.  If you have any questions, feel free to contact me!

Click Here for a list of current listings available in the Racquet Club Road Estates neighborhood and vicinity.