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.

Tags: beat foreclosurer, forecloser, Laveen homes, Phoenix real estate, Real Estate

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!

Tags: buying a home, buying real estate, Phoenix real estate

Seniors have lost 40% of their buying power

Monday, November 26th, 2007 | Investment, Money, Statistics | No Comments

Seniors have lost 40% of their buying power since the beginning of the decade. New study: Cost-of-living adjustments have increased average Social Security benefits only 22% since 2000, while typical senior expenses, such as food, heating oil, drugs and trasnportation, have risen by 71%. Problem: A majority of seniors on Social Security depend on it for at least 50% of their total income.

Shannon Benton, research director, The Senior Citizens League, nonpartisan seniors group, Alezandria, Virginia, www.seniorsleague.org 

The Odds of Selling Your Home in the Valley

Wednesday, October 24th, 2007 | Money, Real Estate, Statistics | No Comments

The Millionaire Mind

Tuesday, October 9th, 2007 | Investment, Money, Real Estate, Statistics | No Comments

I read a book by Thomas J. Stanley, PhD The Millionaire Next Door several years ago. I described that book as the most exciting boring book I had ever read. I found it exciting because Dr. Stanley had done enormous research on millionaires in the United States and wrote a real stereotype-buster book. The information was extremely insightful. The boring part was that the book was full of statistics. The information was very interesting but I really found little use in the information.

I just finished listening to his The Millionaire Mind. Thank you iPod! This book showed me many of the mistakes I was making in my quest to obtain a satisfactory retirement. This is a must read or listen book for those who are interested in acquiring wealth. Dr. Stanley looks at millionaires and deca-millionaires with an eye on how, when, and where they purchase their homes and make so much money with little risk.

If you find a book or article that you feel would benefit our web site, please send me your ideas. One thing about our society today, is that we have too many places for information and much of is less than completely accurate. This web site can be a gathering place for current important real estate and wealth building ideas and articles.

I need to sell my home — what should I do?

Wednesday, September 19th, 2007 | Real Estate, Statistics, The Economy | No Comments

I was speaking to a woman who lives in Tucson this week. She says she needs to sell her house right away. I told her she would need to “find alternatives!” There are some communities where homes are still selling reasonably well. Unfortunately, many areas have high inventory of properties. Checking the Arizona Regional Multiple Listing Service (ARMLS) report, there are 47,563 single family homes listed as active or active with contingencies. The home sales in August dropped to 4,358. Normally August is the last of the best months of home sales in a year. In the home sales report of 2001 to 2007, last month is the slowest August of the seven-year period. These figures don’t contain expired or canceled listings. Selling your home now is pretty much like trying to sell rain water in a thunderstorm. If you have a property that you will not be able to handle, think things through and look for alternatives.

• Many people think the word “rent” is a vulgar four-letter word. If you have purchased and have little equity, renting means negative cash flow.
• Lease to purchase is similar to rent, but done correctly, it may have some advantages
• If you are still living in the home, take in a roommate
• Investigate the possibility of a short sale
• Sell to a wholesaler
• Check government programs, there may be some more options coming
• Don’t allow fear to govern your thinking

In Good Times and Bad Times

Monday, August 27th, 2007 | Investment, Real Estate, Statistics, The Economy | No Comments

I was reviewing the real estate sales for the past few months and was very disappointed with the recent sales volume. As a business owner and real estate agent, I am aware that there are cycles in the market. These home sales are the worst we have seen in a long time.

What does that mean? It means opportunity!!!! Every time there is a change in a market there are losers and winners. If you think you are on the losing side of this market, plan to get to the winning side. Even if you have lost your home and all your savings, you can still be much better off economically in only a few years if you get creative and start looking for opportunities. Many of the most successful business people have lost big in their lives, learned from it and got back into the fray. Colonel Sanders closed his restaurant when he was 65 years old. He only had a chicken recipe. He found a way to more than just get back on his feet. He build Kentucky Fried Chicken into a national brand.

A lot of people will be doing well in this economy. Be one of them! If you are having trouble figuring how to make things better, contact us. We may be able to give you a few ideas.

Phoenix is doing better than Dallas on Foreclosures

Sunday, August 19th, 2007 | Money, Real Estate, Statistics | No Comments

For all of you numbers crunchers, here is an article that lists the highest foreclosure metropolitan areas in the country. One interesting statistic in the table is the ratio of foreclosures to performing loans. This statistic might give you a better reference of just what is happening.

California cities fill top 10 foreclosure list

A Change in the Market?

Thursday, August 16th, 2007 | Money, Real Estate, Statistics, The Economy | No Comments

In the world of mortgage finance you have probably been reading a lot of gloom and doom. One of the great things about our country is its ability to adjust and make changes in the market place to fit consumer needs.

Here is some interesting news

Why Buy a Home?

Friday, July 6th, 2007 | Investment, Money, Real Estate, Statistics, The Economy | No Comments

According to a recent study the economic and social benefits of home ownership are enormous. Just one statistic from this report shows the importance of owning your own home. In 2001 the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700. This report is not showing how the rich get richer and the poor get poorer. It shows that home ownership improves both financial and social position of the family that owns its own home.

The main reason that wealth is accumulated with ownership versus renting is that rent goes into the wealth accumulation of the building owner and not the renter. If you are the owner and rent from yourself, you are building your own wealth. If the owner is someone else, you are probably building their wealth. This wealth is built in three ways:

• Appreciation – Real estate in a growing population increases in value over time. Increases from 3 – 7% are normal in a stable, or especially, in a growing population.
• Home Improvements – Homeowners can invest time, money and effort to provide a greater degree of livability while living in a home that can translate to increased property value.
• Mortgage Payoff – Mortgage payments can be structured to pay off the mortgage loan over a set period of time – 15-30 years. Every mortgage payment decreases the mortgage debt and therefore increases the net wealth of the owner.

The economic and social reasons to purchase a home now are impressive. The reasons to wait need to be considered. Let’s list some of the reasons to buy now and not to wait:

Reasons not to buy:

• Credit problems
• No down payment
• Higher monthly payment
• Paying too much and values go down
• Too much work

Reasons to buy

• Begin building wealth
• Secure a low mortgage rate
• Lower risk of crime
• Children doing better in school
• Stable home life
• Something of your own
• A hedge on inflation
• Improve the home as I like
• Get increased wealth on home improvement
• Make a home purchase in a buyer’s market
• Save money on taxes

Looking for a home can be a lot of fun. You can have an enjoyable family outing and your Realtor® will even supply the vehicle and gas! Start by interviewing lenders and Realtors®. The people you choose are critical to the home buying process. Get enough information to know the right questions to ask. Check references. With the help of your two new advisors, start listing what you want and begin the process of finding it. Enjoy the process of looking at what is available at what price. You will soon be able to know what is over priced and what isn’t. When you see a good deal that fits your needs, take it!