Suffice it to say, Black Friday is just not my scene. Frankly, I don’t like shopping on the best of days. So the idea of frenzied shoppers elbowing each other to get to the $2 toasters after spending their family’s precious Thanksgiving moments queued up overnight in the megastore parking lot sends an involuntary shudder – and shiver – up my spine.
On the other hand, I like a deal as much as the next person – maybe more. My idea of a real deal, however, isn’t a $2 toaster. It’s getting a steal on the house where the toaster will live!
Fortunately, ‘tis the season for big-time real estate bargains. Whether you’re buying a new home or staying put, here are six ways you can save some serious real estate dollars this holiday season.
1. Home Buying. In most markets nationwide, prices continue to hover at levels we saw almost ten years ago. Of course, just how much of a fire sale you’re talking depends on where you’re buying. In Manhattan and San Francisco, prices actually did rise last year—but much less steeply than in years past. And while you may still have to deal with multiple offers, at least those are no longer in double-digits.
On the other hand, in locations like Bend, Oregon and Jacksonville, Florida, houses are going for half of what they sold for just five years ago (or less!).
Following conventional real estate wisdom, many sellers, especially in cold weather spots, take their homes off the market after mid-November, when people are more preoccupied with the holidays than they are with real estate. The flip side? Those who do stay in the market tend to be highly motivated and willing to deal. Take that into account when making your initial offer and during subsequent counters.
2. Sealing the Deal. Motivated sellers are often willing to sweeten the pot by helping out with all those transaction-related real estate costs (including loan origination fees, title insurance costs, escrow fees and even transfer taxes). Since lenders will often limit closing cost credits from sellers to 3%-6% of the home’s sale price, however, check with your real estate agent and mortgage broker about your lender’s guidelines before you write up your offer.
Even if your home’s sellers don’t have the wiggle room to lower the sale price or to cover your closing costs, they might be able to include home electronics, appliances or furniture in the deal. I’ve even heard stories of a seller who recently threw a Smart Car into the deal! Just make sure that to check with the real estate professionals handling your sale and mortgage to make sure any deal-sweetening seller incentives doesn’t sour your loan.
3. Interest Rates. With mortgage rates still near record lows, this is a very merry time to buy or refi, with a mortgage. Just this week, Bankrate reports that the going rate on a 30-year fixed mortgage dropped to 4.24%, and the rate on a 15-year fixed rate mortgage fell to 3.47%. Odds are that rates will remain rock bottom through the holidays (and beyond), making mortgages the gift(s) that keeps on giving in terms of long-term savings.
4. Property Taxes. Hate to pay taxes? You’re in luck! Since property taxes are usually determined by how much you paid for your house, getting a great buy on your house means great savings on your property taxes. Talk about a two-fer! (Oh – and if you already own a home that has declined in value, give yourself the gift of visiting your County tax assessor’s website and submitting a request to have your homes assessed value reduced. What you save can buy a whole lot of iPhones and Elmos.)
5. Negotiating Existing Loans. At year’s end, some banks and asset management companies who have purchased whole portfolios of second mortgages and home equity lines of credit are motivated to close out outstanding issues that are lingering on their books. So if you’re willing and able to pay a lump sum to settle a second mortgage rather than pay the full amount you owe, jump now. A friend of mine who has a $60,000 second mortgage has been in talks with her bank. If she settles the debt by the end of the year, they’ve agreed to take $12,000 and call it good.
6. Home Improvements. You can take advantage of the last of the remaining federal real estate tax credits by improving the energy efficiency of your home:
You can get back up to $500 on your federal taxes when you install approved, energy-efficient heating, ventilating, air conditioning (HVAC) systems, insulation, roofs, water heaters, and dual-pane windows, as well as skylights and doors. This particular tax credit, which only works for your existing principle residence, expires at the end of this year!
If you go whole hog and install a solar energy system, you can recoup as much as 30 percent of the cost, with a credit that doesn’t expire until December 31, 2016.
Also, many contractors offer very deep discounts for off-season home improvements, like installing an air conditioner or pool upgrades in the wintertime.
complements of Trulia
Showing posts with label Your Money is better off in Real Estate. Show all posts
Showing posts with label Your Money is better off in Real Estate. Show all posts
Wednesday, November 23, 2011
Wednesday, July 13, 2011
5 Questions to ask Your Home Inspector
5 Questions to Ask your Home Inspector
Courtesy of
http://www.trulia.com/blog/taranelson/2011/07/5_questions_to_ask_your_home_s_inspector
Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!
So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.
1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.
I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!
In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).
2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.
And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.
And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.
3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”
This question positions your home inspector to help you:
• understand what does and doesn’t need to be repaired,
• prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
• get used to the constant maintenance that is part and parcel of homeownership, and
• understand the importance of having a home warranty plan.
4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.
Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)
5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.
Courtesy of
http://www.trulia.com/blog/taranelson/2011/07/5_questions_to_ask_your_home_s_inspector
Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!
So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.
1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.
I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!
In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).
2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.
And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.
And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.
3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”
This question positions your home inspector to help you:
• understand what does and doesn’t need to be repaired,
• prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
• get used to the constant maintenance that is part and parcel of homeownership, and
• understand the importance of having a home warranty plan.
4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.
Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)
5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.
Tuesday, November 16, 2010
10 Overvalued Global Real Estate Markets
10 overvalued global housing markets
I found a great article about the real estate market globally. Take a look by clicking the link below.....
U.S. market considered 'fairly valued'
BY INMAN NEWS, THURSDAY, OCTOBER 28, 2010
http://www.inman.com/news/2010/10/28/10-overvalued-global-housing-markets
I found a great article about the real estate market globally. Take a look by clicking the link below.....
U.S. market considered 'fairly valued'
BY INMAN NEWS, THURSDAY, OCTOBER 28, 2010
http://www.inman.com/news/2010/10/28/10-overvalued-global-housing-markets
Thursday, October 7, 2010
The Real Estate Buzz......
Real estate prices in our area continue to remain steady. After the tax credits for home buyers expired last May, there was concern that the market could tank. Yet, existing home sales have stabilized over the past year. Lawrence Yun, Chief Economist for the National Association of Realtors, reports that the housing market continues to recover on its own power without the homebuyer tax credit. The NAR reported in September that existing-home sales rose by 7.6% in August following a big correction in July.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
Monday, September 27, 2010
10 Reasons Why It is A Good Time to Buy a Home NOW!!
SEPTEMBER 16, 2010, 7:13 A.M. ET
By Brett Arends
ENOUGH WITH THE DOOM AND GLOOM ABOUT HOMEOWNERSHIP! Brett Arends explains why owning a home is a good thing.
So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.
2. Mortgages are cheap. These are the lowest rates on record. As recently as two years ago they were about 6.3%. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refinance.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out.
By Brett Arends
ENOUGH WITH THE DOOM AND GLOOM ABOUT HOMEOWNERSHIP! Brett Arends explains why owning a home is a good thing.
So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.
2. Mortgages are cheap. These are the lowest rates on record. As recently as two years ago they were about 6.3%. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refinance.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out.
Thursday, September 9, 2010
73% of all homes in Clark County are down at leat 50%. And rents have held up well because the homeowners that are short-selling or vacating homes due to foreclosure must begin renting.
Choose the property wisely and you can get steady income and a good chance of solid appreciation over the next ten years. Seek out places that were growing before the recession and have something compelling to offer that will drive future growth. If you need a mortgage, make sure your monthly income will be enough to cover you loan payments plus a 20% cushion to cover repairs, vacancies and property management.
Real Estate is the only investment that gives you: Cash Flow. Appreciation, Depreciation and Equity Build Up.
Call for more information (702) 236-6266 or www.sharebuildersinc.com
Choose the property wisely and you can get steady income and a good chance of solid appreciation over the next ten years. Seek out places that were growing before the recession and have something compelling to offer that will drive future growth. If you need a mortgage, make sure your monthly income will be enough to cover you loan payments plus a 20% cushion to cover repairs, vacancies and property management.
Real Estate is the only investment that gives you: Cash Flow. Appreciation, Depreciation and Equity Build Up.
Call for more information (702) 236-6266 or www.sharebuildersinc.com
Thursday, September 2, 2010
The Real Estate Market is HOT
Although the news may sound like the world is coming to end. The real estate market and the individuals who are in the "know" are CASHING IN!! This is the best time to purchase whether a owner/occupant or as a real estate investor. If you are wanting to get into the market as an investor here are a few rules to live by:
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
Monday, August 2, 2010
How to Raise Financially-Smart Kids
There is a great article on how to raise fincially smart kids. I thought I would share it with others.
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
Monday, June 28, 2010
Wealth Creation through Real Estate
I have found many people wanting to know how to create wealth through real estate but have not done anything about it. Reasons are many:
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
Tuesday, May 25, 2010
Your Money is better off in Real Estate
Investors Money is better off in Real Estate!
A business associate shared this this article with me and I thought I would share it with everyone.
I have always believed in investing in real estate as a long term retirement strategy. Lets face it, you as the investor or buyer have more control of what, when, why, and how rather than relying on companies that have their bottom line in mind than yours.
I no longer believe that individual investor's are treated fairly in the stock market and the banks, showing huge earnings the last quarter, seem to be trading only to their benefit and no one else's. In short, Goldman Sachs lost money only 11 days in the last 12 months. That would be impossible for us to do and it seems from their congressional testimony that they are making money on both ends of the deals they are doing.
In contrast, "Seven of the investment bank's nine "recommended top trades for 2010" have been money losers for investors who adopted the New York-based firm's advice". How can a company that is right on 96% on their investments be wrong 78% of the time on their clients investments? I think its incumbent upon me to point this out and raise the issue that until something changes drastically, real estate may be a much better option for your money.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aF5tV7uvY0FU&pos=12
A business associate shared this this article with me and I thought I would share it with everyone.
I have always believed in investing in real estate as a long term retirement strategy. Lets face it, you as the investor or buyer have more control of what, when, why, and how rather than relying on companies that have their bottom line in mind than yours.
I no longer believe that individual investor's are treated fairly in the stock market and the banks, showing huge earnings the last quarter, seem to be trading only to their benefit and no one else's. In short, Goldman Sachs lost money only 11 days in the last 12 months. That would be impossible for us to do and it seems from their congressional testimony that they are making money on both ends of the deals they are doing.
In contrast, "Seven of the investment bank's nine "recommended top trades for 2010" have been money losers for investors who adopted the New York-based firm's advice". How can a company that is right on 96% on their investments be wrong 78% of the time on their clients investments? I think its incumbent upon me to point this out and raise the issue that until something changes drastically, real estate may be a much better option for your money.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aF5tV7uvY0FU&pos=12
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