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 HI...GUYS...!!! HOLA...MUCHACHOS...!!!
HECTOR A SAENZ SR.
VISIT US AT: 69-7
NW 50 STREET SUITE "A", FL. 33166
LLAMARME AL Cell:786-273-8761 or FAX:305-559-8489
T/Free:
1-800-465-8317
LIC.
moprtgage broker HECTOR A. SAENZ SR. or E-Mail : hasaenz777@yahoo.com
The effect of price of the Homes
and Mortgages in your community area.
WE CALL IT PURCHASING POWER
Prices in the South Florida area varies
a great deal, depending in the quality of the area, and the nature and composition of the property itself. By this I
mean the neighborhood and the number of bedrooms and of bathrooms it may have. I will consider the minimum expresssion
of either - the nature and the quality of the property - but I would try to make a wild guess about what could
be called or could be a mean average:
1.- SFH for reasale run
$270000 - $400000
2.- SFH new homes
$380000 - $550000
3.- TWH for resale $240000
- $340000
4.- TWH new ones
$325000 - $400000
5.- Condos for resale $185000
- $200000
6.- Condos new ones $260000
- $400000
It has been proven recently that prices can not remain static
for a long time. So, prices are subject to change in no time, or without notice.
Portraying this picture in the Real Estate market then we
can deduct, based on good reasoning, that the value of the mayority of the mortgages could fluctuate between 97% for FHA and
VA to 100% - 95% - 90% - 85% - 80% loan to value of those conventional type of mortgages for those prices above mentioned
Remember, those prices will change through time, which implies
that the amount of future mortgages will tend to be higher, as a general rule. Which along the time implies that the amount
of debt created by and for the Club members will be constantly increasing. Which is good for the Club's purposes.
Let's take for instance the following example:
Sale price of a HOME is $ 250,000.00 and the mortgage
will be 90% of that price, or $ 225,000.00; If the interest rate is 6% fixed for 30 years, then the amount of interest
earned by that mortgage throughout a year will be $13,500.00 Dollar. If by the same talking
the price of the same home is increased to $280,000.00 and keeping the same loan to value the mortgage would be $ 252,000.00
at the same rate of interest - 6% - then the omount of interest earned in a year would be $ 15,120.00 ; which implies
an increase of $ 1620.00 a year, just for the increment in value of said home. That to the Club is an increment of purchasing
power, wich is good and which will be sent down the line to the pockets of and to the savings accounts of the all Club
Membership.
Just in this example you can appreciate the enormous value
of the club existence among the community. The purchasing power of the whole community will be greatly affected and
in a positive way. For instead for all of us - at the community level - paying our mortgages to other banks and financial
institutions out of our own community, we would be loosing the opportunity of keeping those interest earnd on the monthly
basis for our selves. Thence, it is the equavalent for us tobe acting as "OUR OWN BANKS". That we will have to pay taxes,
but of course we would have to; but in this instance it would not matter for there is a positive trade off among and
for the community members; for there is money to be earned along the way. Totaly contrary to what could happen if you
had to pay the same taxes out of the same constant wages earned out of your only source of income - such as your full time
job. Think obout it, see the great benefits it will bring along to you , to your family, and to your own community;
and start looking to get into the Club Membership lines. Become a member or at least lest's know you thoughts.
The effect of the purchasing power
created by the effect of price
changes of the Homes and Mortgages in your community area.
WE CALL IT THE POWER OF JOB CREATION
Remember, in the previous example...that
home was earning $15,120.00 of interest on the yearly basis...? Rmember...? Well, what that tell us is that one Home
creates one Mortgage and this mortgage will generate $15,120.00 Dollars on the yearly basis, out of which we could easely
assume coudl remaind there for a few years...let's say 15 years. This could very well could serve as the seed capital
to star crating new jobs. How...? here is how we could do it, an all this with the generationof only one new MORTGAGE.
Take a close look to the detail.
Knowing that we are going to be recieving $15,120.00 in interest
yearly, this new money in our economy could help us to generate one new full time job for the same amount for an adult,
or two new jobs - Partime jobs - of $7560.00 yearly or of 20 hours a week at $7.00 an hour for two of our own school-age
kids within our own community. Don't you think this would be great...? But of course it would and must be great. I the
Home prices change, so would the Mortgage values, an so would there would be increments on the interest earned on the monthly
Mortgage payments. This along will provide us with more income to create more new jobs, and so on. As long as
we keep on growing so would our PURCHASING POWER...and so would be our communities economic welfare. This is an we all
win program situation, and we should be more preocupied in our future and for those of our beloved ones. Let's take a closer
look to this little and beautifull monster.
Can you imagen, how many more new jobs we could be able to create if
we were to hold more new mortgages on the CLUB'S name; which would the same as by the MEMBERSHIP name...? A LOT OF MONEY,
a LOT OF NEW JOBS, along the way A LOT OF ECONOMIC SECURITY and not to mention, a lot of happyness among the community...don't
you think...?
So, what do you think, is it worth it to create such animal...the CLUB...?But
of course it is, and in time the Economic value of our homes and our investments will be growing accordingly as the National
Economy is impulsed by our government.
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