Cab is King!
That is often a phrase you will hear from wine producers in California regarding one of their biggest wine varietals in terms of production. Ever since Cabernet Sauvignon was discovered in Europe, it has become a very popular varietal as it is fairly easy to grow and can adapt to most climates and soils. Additionally, Cabernet can generally retain its flavor and aroma characteristics no matter where it is grown.
Originally from Bordeaux, France, it was found through DNA testing that Cabernet Sauvignon is the offspring of Sauvignon Blanc and Cabernet Franc. Cabernet Sauvignon is one of the leading varietals blended in Bordeaux style wines along with Merlot, Cabernet Franc, Malbec and Petit Verdot. Bordeaux reds have to be some of the most famous wines in the world, however, California (Napa), Chile, Italy (Tuscany), and Australia are all known to produce some quality Cabernet Sauvignon wines as well.
There are a few different Cabernet styles to be aware of. The first has to do with how warm or cool the climate of the winegrowing region is. If the climate is warmer, such as Napa Valley in California, the wines tend to have more fruit flavors and aromas of cherry and blackberries along with milk chocolate and vanilla. A cooler climate, such as Coonawarra in South Australia, will produce Cabernet wines with aromas and flavors of red pepper, asparagus, tomato leaf, spice, mocha, and tobacco.
The second style has to do with old world versus new world characteristics for Cabernet Sauvignon. New world wine producers are trying to make their Cabernet Sauvignon wines into a more approachable, fruit forward, and less complex wine to appeal to more consumers. Therefore, the characteristics in a new world wine are more fruity with cherry, black currant, and raspberry flavors and aromas. Old world producers typically age their Cabernet Sauvignon based wines for years, sometimes a decade before release. The bottle age these wines pick up tend to decrease the amount of fruit in the wine and showcase a flavor profile of earth, herbs, cocoa, cedar, tobacco, and leather.
On a wine training this past week in Napa, I was able to taste some outstanding Cabernet Sauvignon wines, including some that won’t break the bank. The following are a few that will pair well with a variety of food dishes and are great values from the North Coast. They should also be easy to find at your local grocery store or wine shop.
2005 Sterling Vineyards Napa Valley Cabernet Sauvignon, $17.99
This medium bodied, well-balanced wine exhibits intense red fruit on the nose and has flavors of red cherry, raspberry and a hint of vanilla from oak aging. The flavors finish strong and I believe this wine can stand up to a variety of food dishes from beef to hearty soups. Perfect for the coming fall/winter months.
2005 Louis M. Martini Napa Valley Cabernet Sauvignon, $19.99
The skillful integration of the fruit and oak is what stands out the most with the Martini Napa Valley Cab. Aromas and flavors of red cherry, strawberries, and red currant with vanilla and cedar from the oak aging and a firm tannin structure make this wine an easy favorite. This wine also goes well with a variety of foods, but goes amazingly well with a nice filet mignon or braised short ribs. Can you tell I’ve had it a few times before???
2005 Simi Alexander Valley Cabernet Sauvignon, $18.99
Alexander Valley is actually located in Sonoma County, but this area produces some exceptional Cabernet Sauvignon wines due to the variety in soils and microclimates throughout the region. The color on this wine is incredibly intense with deep red, purple hues. The aromas are subtle; however, the flavors are very concentrated with red cherry, cassis, vanilla, and a slight nuttiness. A good tannin structure and medium to long finish indicate that this is an Alexander Cab of good, sound quality.
2005 Frei Brothers Reserve Alexander Valley Cabernet Sauvignon, $21.99
Another great example of an Alexander Valley Cabernet! And again, great color with dark purple and black hues and medium intensity aromas of black cherry and vanilla. The flavors are much more concentrated than the aromas and showcase more ripe fruit such as plum, raspberry, and vanilla from the oak aging. This wine has good body with a strong tannin structure and a lingering, darker fruit focused finish.
*Please drink responsibly
Interest Rates & Fannie Mae/Freddie Mac
Home Loan interest rates have dropped a bit making homeownership just a little more attainable. If you have a little time and are interested in what is going on in our silly Real Estate world check these articles out.
Kelly…
California Real Estate and the Move up Buyer
I just finished a phone conversation with a potential buyer who was feeling like she had been taken for a ride. Really? I ask and then go on and try to calmly explain the process of the Short Sale and Foreclosure process. I have discussed this numerous times before with these buyers and they still really want this potential new home. Oh, and these buyers already own a home.
So today we REALTORS are confronted with a different type of move up buyer. The buyer that sees nothing wrong in purchasing their new larger box home and walking away from their first smaller box home. I know, it used to be that everyone understood the step up process in home ownership. The process where you the home owner and buyer, sells the first home and takes the equity and puts it down on the next home that is larger, prettier and in a nicer neighborhood. What a fine line we REALTORS walk while trying to council this type of potential client. The right thing to do is inform them of all the reasons why this is not a good idea and look for a way to either help them attain their wish or not. Thankfully Fannie Mae & Freddie Mac are becoming wise to this and are taking steps to curb this activity.
So, what happens now when the home owner/buyer says they are renting the first home out and would like to take advantage of lower house prices to move up now is that if there is not at least a 30% equity position in property #1 the buyer will need to qualify for 100% of both mortgages. I like this.
Can this buyer still take advantage of this down market? Yes, most definitely although not everyone will be so fortunate.
1) You will need the income to qualify for the 2 loans or 3 or 4 or whatever
2) You will need the 10-25% to put down on the new purchase (yes, really)
3) You will need a “real tenant” even though the rent collected will not be used as a compensating factor to qualify for the new purchase (Because if you haven’t figured out by now, I am saying it is morally reprehensible that people walk away from their homes in this manner)
4) DPA (Down Payment Assistance) programs cannot be used in conjunction with this type of purchase nor should they be. (come on now!)
5) or sell your home on your own (if you have 0 to little equity)
I know this is a simplified way of looking at this process and I also believe that it is our responsibility to be part of the solution, not the problem. You don’t walk away from an investment because today it isn’t worth what you paid for it and there is something newer and shinier around the corner.
So consult your REALTOR and make educated responsible plans for your future.
Kelly…
