Robert Lenzer, writes about;
John Paulson, Sept. 27th, 2010;
It could be time to sell your low-yielding bonds and replace them with higher-yielding common stocks.
Multibillionaire hedge fund operator John Paulson, the investment genius who made a killing going short subprime mortgages a few years ago, told a standing room only crowd at New York’s University Club that double-digit inflation is about to rear its ugly head by 2012, killing the bond market, and restoring strength to equities and gold. More...
Showing posts with label Home Buying. Show all posts
Showing posts with label Home Buying. Show all posts
Wednesday, March 16, 2011
Tuesday, October 26, 2010
Existing-Home Sales Show Another Strong Gain in September
RISMEDIA, October 26, 2010—Existing-home sales rose again in September 2010, affirming that a sales recovery has begun, according to the National Association of Realtors. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0% to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August more...
Friday, October 15, 2010
Be Market-Smart: Dos and Don’ts for Home Sellers and Buyers
RISMEDIA, October 13, 2010—It would be unrealistic to say that the real estate market is utterly rosy right now, but neither is it thorn-filled by any means. In fact, things are decidedly looking up: July got some good news, when the National Association of Realtors reported that pending home sales rose 5.2% from downwardly revised June levels, beating economists’ expectations. This is good news for both buyers and sellers.
While challenges still exist—for instance, getting the best price when selling, or securing financing when buying—there are some once-in-a-lifetime opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key for both groups is to remain flexible, adaptable and diligent. To that end, here are some dos and don’ts for today’s buyers and sellers:
For Sellers:
DO’SBe flexible. Often it’s the little things that push a buyer into the “yes” zone. If the buyer goes on and on about how much they love your icemaker, throw it in. If the closing has to be pushed ahead more than you expected, try to be as flexible as possible and pack the moving van a little quicker.
Clean up. One person’s prize doll collection is another person’s cluttered nightmare. Similarly, a living room filled with Beanie Babies could elicit a reaction of fear, rather than “Aw, how cute!” from a buyer. Put away any personal collections that not only cause clutter, but also make it hard for a buyer to see the home as his or hers, rather than yours.
DON’TSDon’t be greedy. The market—not your emotions—dictates your home’s price. If comparables in the area, and several trusted real estate agents tell you your home is worth $400,000, you’re not fooling anyone by pricing it at $500,000—and you’re only doing yourself a disservice. Pricing it at market, even a little below, could generate a bidding war, and ultimately get you more money.
Don’t get personal. If you’re selling your house for a certain amount, and someone offers something much lower, don’t take this as a personal affront and refuse to counteroffer. Letting your emotions get in the way can potentially ruin the deal. What’s the harm in making a counteroffer?
Don’t procrastinate. In the current climate, you might be scared to try to sell your home, as you may have to face a lower selling price than you may have gotten before the recession. But remember, the house you buy might be even lower, commensurately. It’s all relative. So if you’re serious about selling, consider doing it now. Also, acting before the cold months come is a good idea, as the winter months are historically harder for home sales.
For Buyers:
DO’SGet a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious is turned up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.
List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.
Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have,” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.
DON’TSDon’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.
Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.
While challenges still exist—for instance, getting the best price when selling, or securing financing when buying—there are some once-in-a-lifetime opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key for both groups is to remain flexible, adaptable and diligent. To that end, here are some dos and don’ts for today’s buyers and sellers:
For Sellers:
DO’SBe flexible. Often it’s the little things that push a buyer into the “yes” zone. If the buyer goes on and on about how much they love your icemaker, throw it in. If the closing has to be pushed ahead more than you expected, try to be as flexible as possible and pack the moving van a little quicker.
Clean up. One person’s prize doll collection is another person’s cluttered nightmare. Similarly, a living room filled with Beanie Babies could elicit a reaction of fear, rather than “Aw, how cute!” from a buyer. Put away any personal collections that not only cause clutter, but also make it hard for a buyer to see the home as his or hers, rather than yours.
DON’TSDon’t be greedy. The market—not your emotions—dictates your home’s price. If comparables in the area, and several trusted real estate agents tell you your home is worth $400,000, you’re not fooling anyone by pricing it at $500,000—and you’re only doing yourself a disservice. Pricing it at market, even a little below, could generate a bidding war, and ultimately get you more money.
Don’t get personal. If you’re selling your house for a certain amount, and someone offers something much lower, don’t take this as a personal affront and refuse to counteroffer. Letting your emotions get in the way can potentially ruin the deal. What’s the harm in making a counteroffer?
Don’t procrastinate. In the current climate, you might be scared to try to sell your home, as you may have to face a lower selling price than you may have gotten before the recession. But remember, the house you buy might be even lower, commensurately. It’s all relative. So if you’re serious about selling, consider doing it now. Also, acting before the cold months come is a good idea, as the winter months are historically harder for home sales.
For Buyers:
DO’SGet a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious is turned up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.
List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.
Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have,” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.
DON’TSDon’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.
Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.
Tuesday, September 28, 2010
How Large is the Shadow Inventory of Homes?
By Nick Timiraos
A new report estimates that the “shadow inventory” of potential foreclosures and other distressed sales will peak this year at 4.7 million units, a roughly 10 month supply of homes.
But that supply could shrink to as low as 4 million units or swell to as high as 5.6 million homes depending on how many delinquent loans actually move through to foreclosure, according to a report released Monday by John Burns Real Estate Consulting of Irvine, Calif.
The report also estimates that the distressed share of home sales will rise to around 40% of all home re-sales through 2012. And that the shadow inventory of distressed loans will stay at elevated levels through 2016. more...
A new report estimates that the “shadow inventory” of potential foreclosures and other distressed sales will peak this year at 4.7 million units, a roughly 10 month supply of homes.
But that supply could shrink to as low as 4 million units or swell to as high as 5.6 million homes depending on how many delinquent loans actually move through to foreclosure, according to a report released Monday by John Burns Real Estate Consulting of Irvine, Calif.
The report also estimates that the distressed share of home sales will rise to around 40% of all home re-sales through 2012. And that the shadow inventory of distressed loans will stay at elevated levels through 2016. more...
Monday, February 22, 2010
A Golden Opportunity: 203k Program Helps First-Time Buyers Turn Dreams into Reality
By Stephanie Andre
RISMEDIA, February 22, 2010—As a first-time home buyer, Jessica Garcia was excited last April to officially begin her home search. She found a home within her price range, completed the lengthy paperwork and paid for the appraisals, only to later be told after four months that the deal would not close. For the good news....http://rismedia.com/2010-02-21/a-golden-opportunity-203k-program-helps-first-time-buyers-turn-dreams-into-reality/
RISMEDIA, February 22, 2010—As a first-time home buyer, Jessica Garcia was excited last April to officially begin her home search. She found a home within her price range, completed the lengthy paperwork and paid for the appraisals, only to later be told after four months that the deal would not close. For the good news....http://rismedia.com/2010-02-21/a-golden-opportunity-203k-program-helps-first-time-buyers-turn-dreams-into-reality/
Friday, January 22, 2010
10 Cities Where It's Smarter to Buy
Daily Real Estate News January 22, 2010
For people who want to own a home, the premium to buy—the spread between what they’d spend to rent and what they’d pay for a mortgage—is much lower than the 15-year average in many cities.To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.
Here are the top 10 Cities the Magazine chose as the best places to buy right now; http://www.realtor.org/RMODaily.nsf/pages/News2010012201?OpenDocument
For people who want to own a home, the premium to buy—the spread between what they’d spend to rent and what they’d pay for a mortgage—is much lower than the 15-year average in many cities.To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.
Here are the top 10 Cities the Magazine chose as the best places to buy right now; http://www.realtor.org/RMODaily.nsf/pages/News2010012201?OpenDocument
Thursday, January 7, 2010
The Expanded Home Buyer Tax Credit Could Chase Away the Winter Blues
By Ken Trepeta, Director, Real Estate Services
RISMEDIA, January 7, 2010
As we begin 2010, both real estate professionals and home buyers have something to look forward to and more importantly, take advantage of—the extended and expanded home buyer tax credit.
Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes.Read more: http://rismedia.com/2010-01-06/the-expanded-home-buyer-tax-credit-could-chase-away-the-winter-blues/#ixzz0bxuHPGWt
RISMEDIA, January 7, 2010
As we begin 2010, both real estate professionals and home buyers have something to look forward to and more importantly, take advantage of—the extended and expanded home buyer tax credit.
Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes.Read more: http://rismedia.com/2010-01-06/the-expanded-home-buyer-tax-credit-could-chase-away-the-winter-blues/#ixzz0bxuHPGWt
Tuesday, October 27, 2009
Vote on homebuyer tax credit could come soon...
Dueling proposals will be debated in Senate over $8,000 per buyer subsidy
Associated Press
updated 3:33 p.m. PT, Mon., Oct . 26, 2009
WASHINGTON - Top Democrats in the Senate are pressing a plan that would extend a popular tax credit for first-time homebuyers but gradually phase it out over the course of next year.
The proposal, by Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., would extend the $8,000 tax credit — which expires Nov. 30 — through March 31. Its value would drop by $2,000 for each of the subsequent three quarters of 2010.
The plan, which could face a vote in the Senate this week, appears aimed at countering a far more generous $17 billion bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than first-timers. For more...http://www.msnbc.msn.com/id/33484381/ns/business-real_estate/
Associated Press
updated 3:33 p.m. PT, Mon., Oct . 26, 2009
WASHINGTON - Top Democrats in the Senate are pressing a plan that would extend a popular tax credit for first-time homebuyers but gradually phase it out over the course of next year.
The proposal, by Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., would extend the $8,000 tax credit — which expires Nov. 30 — through March 31. Its value would drop by $2,000 for each of the subsequent three quarters of 2010.
The plan, which could face a vote in the Senate this week, appears aimed at countering a far more generous $17 billion bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than first-timers. For more...http://www.msnbc.msn.com/id/33484381/ns/business-real_estate/
Tuesday, March 24, 2009
To Appreciate the Appreciation in Real Estate, Long-Term
Home-selling Strategies by Chris Kaucnik
RISMEDIA, March 2, 2009-What are the general principles we all learned about long-term investing? Research and plan. Buy low, sell high. Keep some liquid assets for short-term emergencies. These basic tenets still apply, at least in real estate.
Your buying clients need to understand that what happened in real estate was a bubble, not something permanent. It was created by removing all barriers to owning real estate. Getting a mortgage became too easy. Interest rates were at historical lows. Appreciation skyrocketed in many markets. The rush to riches through real estate came to an end because bubbles eventually burst. Now we are left with a buyer’s market, instead of a seller’s.
What can you do to show potential buyers that this is the time to buy real estate? Many buyers just don’t understand the market because there are a few more unknowns than they are used to considering.
They may be afraid we haven’t hit the true bottom yet, or even that real estate may no longer be a great investment. They may think they can’t get a mortgage. But whatever the reason, buyers need to know that, like the stock market, no one can predict the exact bottom, and buying now is advantageous due to very low pricing and interest rates, plus many sellers’ incentives.
They need your expertise to help them recognize the indicators that show the time is right to buy in your local market. Maybe it’s a reduction in foreclosures or inventory, or an influx of foreign investors, but regardless, your assessment of the market is paramount to their decision. You can prove to them real estate is a great investment by the historical data below:
National data:
1970-1979 = 142% appreciation
1980-1989 = 52% appreciation
1990-1999 = 45% appreciation
2000-2008 = 42% appreciation
Source: The National Association of Realtors
Like every investment, there are ups and downs. Even if they buy now and it isn’t the exact bottom, the resulting appreciation in years to come will clearly compensate. Now is the time to gain by buying during the low period. Patience and planning are true virtues in real estate. Where else can clients earn these percentages on money that is primarily not theirs and get a tax deduction? What are their alternatives-to miss a great opportunity or buy high?
Chris Kaucnik is marketing director for Home Warranty of America, Inc.
RISMEDIA, March 2, 2009-What are the general principles we all learned about long-term investing? Research and plan. Buy low, sell high. Keep some liquid assets for short-term emergencies. These basic tenets still apply, at least in real estate.
Your buying clients need to understand that what happened in real estate was a bubble, not something permanent. It was created by removing all barriers to owning real estate. Getting a mortgage became too easy. Interest rates were at historical lows. Appreciation skyrocketed in many markets. The rush to riches through real estate came to an end because bubbles eventually burst. Now we are left with a buyer’s market, instead of a seller’s.
What can you do to show potential buyers that this is the time to buy real estate? Many buyers just don’t understand the market because there are a few more unknowns than they are used to considering.
They may be afraid we haven’t hit the true bottom yet, or even that real estate may no longer be a great investment. They may think they can’t get a mortgage. But whatever the reason, buyers need to know that, like the stock market, no one can predict the exact bottom, and buying now is advantageous due to very low pricing and interest rates, plus many sellers’ incentives.
They need your expertise to help them recognize the indicators that show the time is right to buy in your local market. Maybe it’s a reduction in foreclosures or inventory, or an influx of foreign investors, but regardless, your assessment of the market is paramount to their decision. You can prove to them real estate is a great investment by the historical data below:
National data:
1970-1979 = 142% appreciation
1980-1989 = 52% appreciation
1990-1999 = 45% appreciation
2000-2008 = 42% appreciation
Source: The National Association of Realtors
Like every investment, there are ups and downs. Even if they buy now and it isn’t the exact bottom, the resulting appreciation in years to come will clearly compensate. Now is the time to gain by buying during the low period. Patience and planning are true virtues in real estate. Where else can clients earn these percentages on money that is primarily not theirs and get a tax deduction? What are their alternatives-to miss a great opportunity or buy high?
Chris Kaucnik is marketing director for Home Warranty of America, Inc.
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