Archive for March, 2008

Finally Some Good Phoenix Real Estate News!!!

Thursday, March 27th, 2008 | Investment, Money, Real Estate, Statistics | 1 Comment

Existing-home sales climbed unexpectedly in February, as home buyers took advantage of low interest rates, falling home prices and foreclosure bargains.

The uptick in resales ended multiple-month losing streaks both nationally and in metro Phoenix and is prompting speculation that the housing market is close to hitting bottom.

National figures for February show U.S. resales climbed 2.9 percent from January, according to the National Association of Realtors. Valley existing-home sales climbed 10 percent in February, according to figures released earlier this month from realty studies in the Morrison School at Arizona State University.

The Article

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Ideas to Keep Your Home

Saturday, March 22nd, 2008 | Investment, Money, Statistics, The Economy | 3 Comments

If you are struggling with your financial situation, especially with your monthly mortgage and other fixed expenses, here are a few ideas that might help.

There was some statistics that were recently published saying the the average American is living on 110% of his income. Most of us have listened to so many commercials that we feel we need a lot more that we actually do need to survive. The “Get it now and pay later” attitude is prevalent in much of our society. Things like how to do a budget is rarely tough in our education system. So basically, we are ignorant in important financial matters and can use a little guidance.

Fortunately, we live a society that has unlimited ways of overcoming economic challenges. The proof is the exponential rise of millionaires attaining wealth in our country. This article will give a few bandages to help stop the financial blood loss. These band aids may not all fit every need or even be convenient. They are designed to slow or stop the digging of a larger financial hole. Then we can address some longer term solutions to get on a strong financial path.

First things first – track your money! Many of us, especially those of us spending more than we make, spend a lot of money in areas that we shouldn’t be spending. Things like fast food, cigarettes, alcohol, sodas, movies, and a host of other non-essential expenses burn our money at an enormous rate. Write down the absolute essential expenses and try to minimize each expense. Vegetables, fruits, dried beans, rice and pastas are cheap food. A good sized serving of beans costs about $.25, rolled oats are even less when you buy in bulk. That cost beats the fast food value meals and the food is better for you. We have been sold the story that we deserve to have it better. So we have the tendency to spend money on a lot of things could be used in much better ways.

After we become for efficient with our money and are not as ready to squander what we get, it is now time to bring in some more cash! Could you use an additional $6,000 per year? Take in a boarder!. A roommate can be a pretty inconvenient alternative, but $6,000 of $500 per month is a lot of cash to most of us.

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Phil Found This Insightful Article

Thursday, March 20th, 2008 | Investment, Money, Real Estate, The Economy | No Comments

Why Now Is a Smart Time to Buy

RISMEDIA, March 19, 2008-Considering all of the negative press the housing market received in late 2007, it’s more important than ever for buyers to separate fact from fiction when deciding on a time to buy a home. This report is intended to help home buyers assess the facts of the real estate market objectively.

The Rest of the Article

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Don’t over upgrade your home

Tuesday, March 11th, 2008 | Investment, Money, Real Estate | No Comments

This article from CNN Money seem to be telling us that there are changes in the way buyers are looking at the value of their purchase.

Article

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Six Huge Mistakes Investors Make

Tuesday, March 11th, 2008 | Investment, Money, Real Estate, Safety | 1 Comment

1. Too much risk: Banks and other lenders have historically provided special programs to residential real estate purchases. 30 – 40 – and even 50-year mortgages are common in the residential real estate market. The investor purchasing a property is promising to make up to 600 payments!!!! What are you going to be doing in 50 years? FHA will guarantee 97% of the purchase price of a home to the banks.

The news is full of today’s mortgage crisis. Everyone seems to forget the mortgage crisis in the early 90s or the RTO crisis in the early 80s. The small investor usually takes a very hard economic hit during these times.

Here is a fact that few small investors know. “You don’t have to have all that risk!”

2. Too little return: The short term is the safest types of investment simply because changes in the real estate market usually take time. If the investment brings a return in a few months, economic pressures are usually limited. The problem with short term investments is there are so many costs involved with the purchase, finance, repair, selling and holding costs that a small miscalculation can wipe our all the profits. A decent return for a flip is usually no more than 5-10%.The longer term investor compounds the investment returns but liability, repairs, administration and liquidity hold down returns. Much of the gain in long term investments are appreciation and tax incentives.

Here is a fact that few small investor know. “You can get the best benefits of both types of these investments while getting better returns.”

3. Not having a team: The small investor is usually swimming the difficult economic waters either alone or with an imbalanced small team. Usually, an investor will have one or two money guys, a Realtor® and maybe a handyman. A well-rounded team makes fewer mistakes and brings a better return. Normally what hurts the investor are decisions made while the investor did not know what he did not know. The more common phrase is “Learning from the school of hard knocks!”

Here is a fact that few small investors know. “You shouldn’t do it all yourself to make more profit!”

4. Paying too much to the government: When the investment is lucrative the government steps in with self employment tax 15.3%, federal and state income tax up to 53%. There is little left for the risk taking investor. Even the longer term investor is stuck on a merry-go-round avoiding capital gains tax.

This compounds as profits are taxed which restricts investment and the returns of those investments are taxed etc. in a never ending cycle.

Here is a fact that few small investors know. “You don’t have to pay all that tax!”

5. Having infinite liability: We here in the United States live in a litigious society. Three percent of our total gross national product is siphoned off by the trial lawyers! If you don’t own anything, you have little to fear from predatory trial lawyers. Become successful and you immediately increase the probability of a lawsuit. The odds are 1 in 3 if you have a successful enterprise that you will be the target of a lawsuit. Feeling protected by having insurance is similar to having a large piece of raw meat strapped to your back in a hungry lion’s den. The insurance policy ensures the attorney that he will get paid. When you are called to give a deposition during a court disclosure process expect to be asked about everything you own.

Here is a fact that few small investors know. “You don’t have be at risk!”

6. Your business owns you: The small real estate investor usually takes on tasks that require time and effort. Frequently, the time and effort becomes a problem and negatively impacts the investor’s lifestyle. The investor becomes an employee of the investments running errands and completing tasks at inconvenient times. In other words the small investor has purchased a job.

Here is a fact that few small investors know. “You don’t have be owned by your investment!”

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No Money No Credit 5 Year Plan

Friday, March 7th, 2008 | Real Estate | 1 Comment

Many of us have found that our credit is not where we want it. Some times it is easier to start new credit than it is to repair it. For example a bankruptcy

Best Time to Buy a Home in 4 Years!!!!

Friday, March 7th, 2008 | Investment, Real Estate, Statistics, The Economy | No Comments

Sometimes we see some news that really make sense. If you were looking to the best time to purchase a home. This is a must read.

Read this!

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