Joan Sather Real Estate

One of the oldest homes currently listed for sale in Pacific Palisades is an adorable Cape Cod complete with a picket fence in the 600 block of Via de la Paz. Built in 1939, the house has three bedrooms, two baths, a formal dining room, an eat-in kitchen and a nice large living room.

The current list price: $1,195,000. I represented the then-owners in 1997 and we sold it for $620,000! Not at all a bad investment of six years. Some quick math will conclude a gain of at least $250,000 after loan costs and other expenses. This is even more impressive when the original 20 percent - $124,000 - is factored as the only money “put up” to do this. And in this analysis, the owner has lived rent-free in the Palisades.

Speaking of rent, if you had paid an average of $3,000 per month over a six-year period for an equivalent Palisades home, your out-of -pocket total would be $216,000. But as an owner, you would put the aforementioned $250,000 in your pocket. And some people, after six years, would take out a home equity loan and use it to purchase another home. It’s a win-win!

Joan Sather has represented sellers and buyers for the past 17 years. She can be reached at 310-573-7466.

Link: http://www.joansather.com

There was a time when homeowners, after owning their property for 25 to 30 years, looked forward to FINALLY having their mortgage paid off. "Free and clear" was the goal. Some people even celebrated by burning the deed to their home. Now, things are different.

(2008 Comment)This article was written in 2004 and offers some great advice. If more people had listened we wouldn't be in today's mortgage meltdown.

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