Could it be that the meteoric rise of fuel prices has resulted in reversing a trend of exodus from big cities to the suburbs and is bringing people back in order to avoid long, expensive commutes?
The is the notion I just heard on the network news and it's an interesting topic to ponder.
Recently, it's been theorized that many snowbirds were tiring of the trek from north to south, and vice versa, with the seasons, and likewise, were tiring of trekking anywhere for entertainment, foods sports, name it, also resulting in a shift with older, empty nesters, if you will, looking for urban lifestyles and a home in the large, mostly northeastern cities.
Now, with oil prices and congestion in the 'burbs comes the theory that many younger, working types, will also start to look for homes closer to their place of work, presumably in or near cities. Hmmm.
In Pennsylvania there is talk of serious consideration being given to abolishing the statewide real estate school tax which is the lion's share of the real estate tax burden. This would result in dramatic reductions in real estate taxes (to be replaced by other tax adjustments presumably aimed at evening out the burden imposed for educating our young) especially in areas with high taxes such as Coatesville and Downingtown in Philly's western suburbs. While this would seem to foretell of a coming economic shift in some of that areas desirable communities, the previous two conversations present an interesting dynamic that is sure to paint a new, unexpected picture over the next 20- 40 years.
Surely you grasp how this is relevant to investors....
Wednesday, June 18, 2008
Sunday, June 15, 2008
Best Time EVER, To Invest in Real Estate
Yessirree Bob that's what ALL of the self-proclaimed experts are and have been saying... Why hell, it's a buyer's market, interest rates are low, and gosh darnit (I prefer not to cuss you know) it's just the best darn time ever (to give me your money so I can show you how to get into this at this GREAT time!) Yes sir, THAT is the actual message being spewed about...
Why do I say that? I say that because, well it's true, it's nothing re than a come on to sell seminar seats. Let's face it, it is a pretty good time to buy depending on your financial position and what you plan to do with the properties. But the flip market is fairly soft in a lot of areas thus making rehabs a little risky ESPECIALLY if you're not apt to do higher end finishes in your rehabs or if the property won't support a higher end rehab. Additionally, strangely the rental market seems a bit soft, counter to the wisdom that assumes with tougher mortgage criteria more people should be looking to rent. Lastly, many would be, and also experienced investors are finding financing their purchases to be a challenge from a number of perspectives.
So, while there are still some good buys out there and even a number of portfolios being offered up, my humble opinion is that this is no better and no worse a time to invest in real estate than two years ago or 2010.
Why do I say that? I say that because, well it's true, it's nothing re than a come on to sell seminar seats. Let's face it, it is a pretty good time to buy depending on your financial position and what you plan to do with the properties. But the flip market is fairly soft in a lot of areas thus making rehabs a little risky ESPECIALLY if you're not apt to do higher end finishes in your rehabs or if the property won't support a higher end rehab. Additionally, strangely the rental market seems a bit soft, counter to the wisdom that assumes with tougher mortgage criteria more people should be looking to rent. Lastly, many would be, and also experienced investors are finding financing their purchases to be a challenge from a number of perspectives.
So, while there are still some good buys out there and even a number of portfolios being offered up, my humble opinion is that this is no better and no worse a time to invest in real estate than two years ago or 2010.
Friday, June 13, 2008
A Sad, Sad Subprime Story
Reprinted from somewhere I can't recall...
I'd like to think that there's nothing I could read or hear on stations like CNBC or print media anymore that would shock me. Of course, today was an exception.
I read an article from MSN (also known as TSIF – The Sky Is Falling) regarding homeowners who'd had enough of their payments, dealing with the bank, and fear of foreclosure so they left the keys on the kitchen counter or in the front door and walked away from the property.
Apparently the mortgage industry calls this "Jingle Mail" (the keys arrive in an envelope via mail most of the time).
There were three homeowners spotlighted in this article, but there's one gem that really blew me away.
Here's the facts first:
30+ mother of 3
$50,000/yr income
Married
Living in California
Purchase price of her home: $585,000
Down payment: $16,000
Lesson learned: Priceless
The article chose to focus on the fact that within 8 months of buying the house, the woman in question's marriage fell apart.
No one wanted to talk about the fact that she made FIFTY THOUSAND DOLLARS A YEAR AND PURCHASED A HOME WORTH OVER HALF A MILLION!!!
My favorite??? Her mortgage payment was $4,500 a month…Adjustable Rate…No taxes or insurance included.
…because we all know someone with an extra five grand laying around to burn each month with a 5-figure income!
It absolutely sickens me that the media has chosen to focus on the poor, pitiful homeowner in trouble rather than the joker who was sitting at the closing table, signing the paperwork, fully disclosed (in most instances) that their payments would adjust, the rates would go up, and that eventually…eventually…the great housing boom would come to an end.
And yet, in the microwave society we live in today, too many are focused more on getting what they want right now rather than waiting for the right time.
I'd like to think that there's nothing I could read or hear on stations like CNBC or print media anymore that would shock me. Of course, today was an exception.
I read an article from MSN (also known as TSIF – The Sky Is Falling) regarding homeowners who'd had enough of their payments, dealing with the bank, and fear of foreclosure so they left the keys on the kitchen counter or in the front door and walked away from the property.
Apparently the mortgage industry calls this "Jingle Mail" (the keys arrive in an envelope via mail most of the time).
There were three homeowners spotlighted in this article, but there's one gem that really blew me away.
Here's the facts first:
30+ mother of 3
$50,000/yr income
Married
Living in California
Purchase price of her home: $585,000
Down payment: $16,000
Lesson learned: Priceless
The article chose to focus on the fact that within 8 months of buying the house, the woman in question's marriage fell apart.
No one wanted to talk about the fact that she made FIFTY THOUSAND DOLLARS A YEAR AND PURCHASED A HOME WORTH OVER HALF A MILLION!!!
My favorite??? Her mortgage payment was $4,500 a month…Adjustable Rate…No taxes or insurance included.
…because we all know someone with an extra five grand laying around to burn each month with a 5-figure income!
It absolutely sickens me that the media has chosen to focus on the poor, pitiful homeowner in trouble rather than the joker who was sitting at the closing table, signing the paperwork, fully disclosed (in most instances) that their payments would adjust, the rates would go up, and that eventually…eventually…the great housing boom would come to an end.
And yet, in the microwave society we live in today, too many are focused more on getting what they want right now rather than waiting for the right time.
Monday, June 2, 2008
Missing Me?
I'm on hiatus along with Bill Maher. Stay tuned for more enlightened real estate jibber jabber while our Wilmington flip flounders in the apparent dead market that is Delaware.
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