SMA Financing Real Estate & Home Loan Specialists Serving Californians since 1992

AUGUST 2004

Dear Friend,

I hope you've been enjoying the great weather we've been having. Hopefully you've managed to take a vacation or two. I'm hoping to take a family vacation before the summer comes to an end. One place I like to look for ideas is on www.travelzoo.com. If you have any recommendations for me please let me know.

Real Estate Update

The housing market is still very strong. The good news is that it's not crazy strong like it was 6 months ago with properties receiving 20-50 offers and sellers' using momentum pricing. Instead we now see pricing based on last sale, and if the property shows well, it'll typically get 2-4 offers. Because the quality of buyers out there today isn't as good as it was, some real opportunities to buy do arise. I've been very busy helping people sell and buy their new home. Housing stats can be found at http://www.bayeast.org/buysell_housingstats.html

Property Tax Reminder Your 1^st Installment of Property Taxes is due Nov. 1 and late on Dec. 10 Follow this link to get to your tax assessor's office: http://www.smafinancing.com/property_taxes.htm

Income Taxes If your self-employed and received a windfall profit this year, you may need to make an estimated tax payment. The 3rd installment is due on Sept. 15. You can estimate what your 2004 Tax Liability will be this year by using the Federal and state tax rate schedules at: http://www.investinginbonds.com/statetaxes.htm

Refi Central Contrary to what you hear rates are still great, they are just not as low as they were in April. Right now I’m helping people refi's from people who just weren't aware that you could do a no cost loan or people in special situations. Home Equity lines programs are very aggressive right now. Even if you don't need the money today, it's a better idea to get a line while you can qualify for it vs. when you need the money and can't qualify. There's no cost involved to open one, and rates are tied to the prime rate.

Suggestions on what to do with that extra cash Have cash sitting in the bank making 1/2% or less. Nowadays I see some banks offering 2-2.5% on short term deposits. You could move your money there or alternately you could take a home equity line, and pay off what ever debt you have. Then if an emergency arises you could simply draw upon the equity line.

	Home Improvement Projects that save money Low flow toilets have crossed a new threshold. Traditional toilets used 7-9 GPF (gallons per flush), then manufacturers came out with 5.5 GPF, then 3.5GPF and now we're seeing toilets that get the job done with only 1.6 GPF and even 0.8 GPF. Save water, save money, save natural resources. Find out more at http://www.terrylove.com/crtoilet.htm
Find a Deal on Digital camera, memory, or DVD If you are a high-tech shopper like me, check out www.dealnews.com on a daily basis. They do a great job of letting you know about great deals on electronics, and other consumer items.