Wanted to share this video:
Investing in Real Estate Real estate mogul Donald Trump discusses whether now is the time to buy real estate, particularly properties in foreclosure, with CNBC's Erin Burnett
http://www.cnbc.com/id/15840232?video=561989966
Investors know, best time is to buy when market is down. Pick up income property or buy that home you've always wanted.
Friday, November 16, 2007
Friday, November 9, 2007
Budget and Save
Markets like this is a good time to re-think your spending habits. I know..I know...it's tough but eating out less, buying less junk or brewing your own coffee will save you big time later. Start paying down credit cards with the highest interest rates and put more to savings. Email me and I'll send you a spreadsheet to start the process.
Tuesday, November 6, 2007
Orange County-Local Market Conditions
CAR (California Assoc. of Realtors) released numbers for this year.
Peak Month Apr-07
Peak Price $747,260
Aug-07 Median $710,380
% Chg From Peak -4.9%
-4.9% isn't bad. The media has Sales and Price confused. That's what consumers read but prices are not down much considering we've had a double digit return in the pass 4 years. The negative price change also reflect the Subprime problem so we're still in good shape. If we did a negative 50% on prices then we have a real problem on our hands. However, if you do the math on a $400k home w/14% interest versus that same home at $800k at 7% interest the payments are pretty darn close. The good thing of buying at $400k is that your property taxes are lower but finding that "perfect" home might not be at $400k. Conclusion, if you're a buyer and found a home that you know you will not find again..buy it. As for seller's, your home doesn't have as much "equity" as you think it does, it was unrealized gained to begin with. The good thing for seller's is that once you sell you can buy in low. It's all relative. Home ownership shouldn't be a gamble. Get into the right loan, pay your mortgage and enjoy your home.
Peak Month Apr-07
Peak Price $747,260
Aug-07 Median $710,380
% Chg From Peak -4.9%
-4.9% isn't bad. The media has Sales and Price confused. That's what consumers read but prices are not down much considering we've had a double digit return in the pass 4 years. The negative price change also reflect the Subprime problem so we're still in good shape. If we did a negative 50% on prices then we have a real problem on our hands. However, if you do the math on a $400k home w/14% interest versus that same home at $800k at 7% interest the payments are pretty darn close. The good thing of buying at $400k is that your property taxes are lower but finding that "perfect" home might not be at $400k. Conclusion, if you're a buyer and found a home that you know you will not find again..buy it. As for seller's, your home doesn't have as much "equity" as you think it does, it was unrealized gained to begin with. The good thing for seller's is that once you sell you can buy in low. It's all relative. Home ownership shouldn't be a gamble. Get into the right loan, pay your mortgage and enjoy your home.
Thursday, November 1, 2007
FED Reduces Rate-Good or Bad
It's not going to get buyer's out because the reality is, is that some cannot afford or qualify, regardless. The only thing that worries me is that consumers might spend more on other things to increase debt. Reducing the rates will assist the current ARM holders, 2nd Trust Deeds and assist lenders to re-structure borrower's loans. Let's just hope consumers don't go on a spending spree. If only we can control spending in a direct way. Email me if you need help budgeting. It's my area of expertise.
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