The San Francisco Bay area this time of year, on a clear sunny day, is like nothing else in the world. The crisp, clean air, great shops and restaurants, and house hunting schedules always give one something fun to do.
We know that there are some of the great deals to be had are in this area right now. If one has the means for a solid down payment, and the market they are in is fixers($300K-$400K), new condos($260K-$450K), or starter homes($400K-$600K) there are deals to be made. For the market in the higher end homes in the Bay Area($1M- )deals are not as plentiful as there is still a bit more buyer competition.. The U.S. economy has not been as difficult for the higher income earners over these past few years of decline. In fact, studies show, that the higher income demographic has shown a definitive increase in their earning and, subsequently, spending power. This makes the upper end home market still highly competitive.
In a slower real estate market, such as what we are experiencing in numerous areas around the United States at this time, it makes sense that the hardest hit economic demographic would be the lower end to mid level home market. These are the buyers that will be the first to be skittish, as well as, the borrowers with the lowest average FICO scores. With those buyers being more hesitant to enter the market, this creates a larger volume of inventory of homes. This will give the buyer the advantage creating a lower overall pricing for the homes for sale. With that said, homes that are new tend to sell at a bit higher pricing, as you get a better home for the same square foot appraisal value. Although awesome deals can be had for home buyers looking to do a little work. In a tighter market, if you can bring in a good down payment to the table, in an investment time such as this, it will help with the loan acquisition, loan rate, and bargaining power.
It is best to get Pre-qualified with a lender before one goes to the negotiating table. That way one is able to negotiate, and do the old "walk away". Realtors are having hard times right now, as well as loan agents. So, negotiation will be the power move to get you into your new home, for a great deal, now. Make sure that the loan agent tries to find a loan package that is best for you, the borrower, and not necessarily the best loan agent's commission.
Monday, October 29, 2007
Friday, October 26, 2007
Fires, Hurricanes, Tornados, OH MY
As we all watch San Diego, and other areas, in southern CA burn to the ground there seems to be a common thread of nerves that flow through everyone about their home and possible situations that could happen.
There are varied reasons why some of these properties, and areas, have burned. The zoning ordinances around those parts has been changing to accommodate the growing population and home buying demographic. People that choose to buy near forests for privacy and views must take precautions to their building and landscaping. Just as people living in tornado areas, or earthquake areas must think about the situations that may arise for them. In New Orleans, the levies broke. However, if people were to have built their homes in LA in a more elevated fashion perhaps we would have had less damage to that area.
Through the use of Thermal Insulated Concrete structures many of these natural disaster fears can be put at bay. It takes much more of mother nature to throw at these homes in order to do near the damage that we have recently seen in these extreme conditions.
Our thought is, why build a less efficient home, and pay more insurance for something that may not happen. When you can build a better, more efficient home in all respects, subsequently receive tax and insurance savings, and not have to worry about this kind of damage to your home.
If home is where the heart is we should all take better care of our hearts and homes! This can be done by building homes in a better way.
For more information visit our website at Boggs Development Group
There are varied reasons why some of these properties, and areas, have burned. The zoning ordinances around those parts has been changing to accommodate the growing population and home buying demographic. People that choose to buy near forests for privacy and views must take precautions to their building and landscaping. Just as people living in tornado areas, or earthquake areas must think about the situations that may arise for them. In New Orleans, the levies broke. However, if people were to have built their homes in LA in a more elevated fashion perhaps we would have had less damage to that area.
Through the use of Thermal Insulated Concrete structures many of these natural disaster fears can be put at bay. It takes much more of mother nature to throw at these homes in order to do near the damage that we have recently seen in these extreme conditions.
Our thought is, why build a less efficient home, and pay more insurance for something that may not happen. When you can build a better, more efficient home in all respects, subsequently receive tax and insurance savings, and not have to worry about this kind of damage to your home.
If home is where the heart is we should all take better care of our hearts and homes! This can be done by building homes in a better way.
For more information visit our website at Boggs Development Group
Tuesday, October 23, 2007
Things change...
Things change to what we focus on. What we give attention to is where the energy of our efforts will gravitate towards and create.
If you did not read the newspapers to know the daily affairs of Britney or Bush, would life as YOU know it continue or halt? Is Britney an integral part of your life? Have you every met Bush or had dinner with him? Then does it behoove us all to pay such attention. If you didn't watch, or listen to the News would life as you know if continue?
One thing that has come to our attention is how damaging this dis-information is to our society and personal lives. By giving attention to that which we do not agree to, to not want, do not believe in, we empower that. Give attention ONLY to what it is you want.
In business it is best to focus on programs and systems that you and your company want and need to succeed. As energies are put into areas that need assistance in order to make them better performing we should focus our attentions on the things which we want out of these changes. By exerting energy to the things we want, and eliminating any thought and energy to the things we do not want anymore, we tend to focus more clearly and make it happen. What you focus on happens regardless. It's as simple as that.
Now, take that energetic and magnify it. This is what our government is good at, and they know it. To manipulate the public through mis or dis-information helps to create fear and uncertainty. Through this the escalation of more of this action creates a more powerful energy of fear and uncertainty until we have actually created it. I this what we need? What we all really didn't want?
If we are what we feel, as it has been said for eons, we must learn to feel better about who we are and what we want. Not who we aren't and what we DON'T want.
By focusing on creating better building for a better planet, like our firm does, we create a better home. We do not focus on creating this building because of the dire necessity due to global warming, we focus on the good it creates and the good it will manifest. By doing this, people will have a better living environment and create a better home life. By focusing on the good we can only create good.
If you did not read the newspapers to know the daily affairs of Britney or Bush, would life as YOU know it continue or halt? Is Britney an integral part of your life? Have you every met Bush or had dinner with him? Then does it behoove us all to pay such attention. If you didn't watch, or listen to the News would life as you know if continue?
One thing that has come to our attention is how damaging this dis-information is to our society and personal lives. By giving attention to that which we do not agree to, to not want, do not believe in, we empower that. Give attention ONLY to what it is you want.
In business it is best to focus on programs and systems that you and your company want and need to succeed. As energies are put into areas that need assistance in order to make them better performing we should focus our attentions on the things which we want out of these changes. By exerting energy to the things we want, and eliminating any thought and energy to the things we do not want anymore, we tend to focus more clearly and make it happen. What you focus on happens regardless. It's as simple as that.
Now, take that energetic and magnify it. This is what our government is good at, and they know it. To manipulate the public through mis or dis-information helps to create fear and uncertainty. Through this the escalation of more of this action creates a more powerful energy of fear and uncertainty until we have actually created it. I this what we need? What we all really didn't want?
If we are what we feel, as it has been said for eons, we must learn to feel better about who we are and what we want. Not who we aren't and what we DON'T want.
By focusing on creating better building for a better planet, like our firm does, we create a better home. We do not focus on creating this building because of the dire necessity due to global warming, we focus on the good it creates and the good it will manifest. By doing this, people will have a better living environment and create a better home life. By focusing on the good we can only create good.
Tuesday, October 16, 2007
Silver Tsunami is here!
This is the name being applied to the deluge of retirees from the Baby Boomer generation to which officially began filing their Social Security benefits this past week. The first woman to file was born one second after midnight on January 1, 1946. She will receive her first check in February 2008. By retiring early, at age 62, she will be receiving 75% of the full benefit to which she would have received if she had waited and filed at age 66.
Some 80 Million persons will be applying for retirement benefits over the next 20 years. Under a law that was enacted in 1983 the retirement age was raised to 67 for full benefits, with early retirement beginning at 62. This program was used to help shore up the ailing pension plan. Despite this action, as the "silver Tsunami" begins to come into their age it appears that the Social Security Administration will be bankrupt, and paying out more money that it brings in in taxes, in the year 2017. The entire fund will be fully exhausted by the year 2041.
What does this mean? This means that the average American will continue to work more for less. This means that it will be imperative to become financially independent on your own. As history shows us, inflation is a direct result of a capitalistic means of economic structure. Therefore, it is suffice to say, that unless we change our global economic system the inflation process will continue. This is soon to become a necessity to do so without the aid of a college education. As colleges continue to increase their tuition costs, as well as, cost of living increases not matching the living wage increases, it seems that more people could be squeezed out of the collegiate life.
Don't fret on this though, it is widely known that there are more self made millionaires without a college education than with. There have been more millionaires made through real estate than through any other means. With that there is comfort in knowing on average Real Estate always goes up. On a basic 7 year cycle you will beat the average of wall street through real estate. On a buy and hold basis real estate comes out on top.
Take note, that no matter what type of economic situation our country is in, somewhere, there are places where deals are being made. This is the basis of economics. As one area weakens, another strengthens. These are the basics of physics, of for every action is a reaction. As it might just be your own home as your largest personal investment educate yourself to the possibilities of the marketplace. Protecting this investment, or the numerous rental or investment properties you might own, now is always the time to study and learn.
Some 80 Million persons will be applying for retirement benefits over the next 20 years. Under a law that was enacted in 1983 the retirement age was raised to 67 for full benefits, with early retirement beginning at 62. This program was used to help shore up the ailing pension plan. Despite this action, as the "silver Tsunami" begins to come into their age it appears that the Social Security Administration will be bankrupt, and paying out more money that it brings in in taxes, in the year 2017. The entire fund will be fully exhausted by the year 2041.
What does this mean? This means that the average American will continue to work more for less. This means that it will be imperative to become financially independent on your own. As history shows us, inflation is a direct result of a capitalistic means of economic structure. Therefore, it is suffice to say, that unless we change our global economic system the inflation process will continue. This is soon to become a necessity to do so without the aid of a college education. As colleges continue to increase their tuition costs, as well as, cost of living increases not matching the living wage increases, it seems that more people could be squeezed out of the collegiate life.
Don't fret on this though, it is widely known that there are more self made millionaires without a college education than with. There have been more millionaires made through real estate than through any other means. With that there is comfort in knowing on average Real Estate always goes up. On a basic 7 year cycle you will beat the average of wall street through real estate. On a buy and hold basis real estate comes out on top.
Take note, that no matter what type of economic situation our country is in, somewhere, there are places where deals are being made. This is the basis of economics. As one area weakens, another strengthens. These are the basics of physics, of for every action is a reaction. As it might just be your own home as your largest personal investment educate yourself to the possibilities of the marketplace. Protecting this investment, or the numerous rental or investment properties you might own, now is always the time to study and learn.
Tuesday, October 9, 2007
Location, Location, Location...
Even in these kind of times one can put on their thinker cap and find some great deals.
With the stock market back and flying high you need to think of those who have been relying on that as a means to build their economic backbone. What demographic has the largest amount of people in it? What demographic has the largest amount of expendable income or portfolio? Where do they wish to retire? What amenities do the wish to maintain? What type of housing do they wish to have?
These thoughts brought my investing to the southern belt seven years ago. I still maintain this philosophy and things are going well.
These states will be the first states to turn around in this overall stagnate real estate economy due to the basic affordability and the Fannie Mae funding cap levels. One is able to get a grand house in TX, MI, LA, and parts of Florida and Arizona. Now NM is beginning to expand with good opportunity.
It doesn't matter the economy overall, as there is always a deal somewhere. It just needs to be sought out. There are pockets of perfect deals somewhere. However, when the press is always telling the public that the national housing boom is slow, well, they are wrong. There is no such thing as a national housing market. Every market is localized and privy to each local economy. So simply do some research and find the pockets of local economies that are going well. They are out there. I guarantee it!!
With the stock market back and flying high you need to think of those who have been relying on that as a means to build their economic backbone. What demographic has the largest amount of people in it? What demographic has the largest amount of expendable income or portfolio? Where do they wish to retire? What amenities do the wish to maintain? What type of housing do they wish to have?
These thoughts brought my investing to the southern belt seven years ago. I still maintain this philosophy and things are going well.
These states will be the first states to turn around in this overall stagnate real estate economy due to the basic affordability and the Fannie Mae funding cap levels. One is able to get a grand house in TX, MI, LA, and parts of Florida and Arizona. Now NM is beginning to expand with good opportunity.
It doesn't matter the economy overall, as there is always a deal somewhere. It just needs to be sought out. There are pockets of perfect deals somewhere. However, when the press is always telling the public that the national housing boom is slow, well, they are wrong. There is no such thing as a national housing market. Every market is localized and privy to each local economy. So simply do some research and find the pockets of local economies that are going well. They are out there. I guarantee it!!
Sunday, October 7, 2007
I don't get it...
It seems that the economy is good. By that I mean, unemployment numbers are low, mortgage rates are still low, housing prices are low with a lot on the market, yet people are afraid to buy. This is a perfect buying scenario. Good money rates, good housing prices, plenty to choose from, yet people are nervous.
I think it is our press. We live in a society that thrives on news. Yet, when the news is delivered in a fashion that is strictly by the book, from their cube, and not by someone going out and getting into a community and asking a few questions, it gets dangerous. Our society has chosen to become a people that believe and trust something that is heard by the third time. By that I mean, the corporate news groups know that when they do a story on the upcoming recession, by the third time or rewrite there becomes a captive audience. This then grows and becomes it's own fodder through the grass roots level and compounds itself.
My philosophy is to get out and talk to people. Ask questions and try to get specific personal answers that help me reach a conclusion.
I know of a duplex in Oakland, CA where there is a good Section 8 tenant on top for $1800 and another unit below. Asking price is $599,000. I imagine that they might take $525,000. This could be positive cash flow right out the gate. But, it's been on the market for a while now as people "are afraid" to buy, because the news guy says so. How many properties does the news guy own, is my question? I alway get people telling me that the market is bad for investment properties right now because the loan industry has changed so much it makes things so difficult. I ask them how many rental properties they own to be able to rationally come to this conclusion, and the answer is none, but they are looking to get in.
Now is the time to get in. We may not ever have rates this low, with prices this competetive, with unemployment numbers this low, and GDP moving higher again in a while.
I think it is our press. We live in a society that thrives on news. Yet, when the news is delivered in a fashion that is strictly by the book, from their cube, and not by someone going out and getting into a community and asking a few questions, it gets dangerous. Our society has chosen to become a people that believe and trust something that is heard by the third time. By that I mean, the corporate news groups know that when they do a story on the upcoming recession, by the third time or rewrite there becomes a captive audience. This then grows and becomes it's own fodder through the grass roots level and compounds itself.
My philosophy is to get out and talk to people. Ask questions and try to get specific personal answers that help me reach a conclusion.
I know of a duplex in Oakland, CA where there is a good Section 8 tenant on top for $1800 and another unit below. Asking price is $599,000. I imagine that they might take $525,000. This could be positive cash flow right out the gate. But, it's been on the market for a while now as people "are afraid" to buy, because the news guy says so. How many properties does the news guy own, is my question? I alway get people telling me that the market is bad for investment properties right now because the loan industry has changed so much it makes things so difficult. I ask them how many rental properties they own to be able to rationally come to this conclusion, and the answer is none, but they are looking to get in.
Now is the time to get in. We may not ever have rates this low, with prices this competetive, with unemployment numbers this low, and GDP moving higher again in a while.
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