Powered By Blogger

Wednesday, August 31, 2011

Top 2 Mistakes when Selling your Home!

Mistake No.1 -
Getting Emotionally Involved.
  Once you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a homeseller rather than as the home's owner. By looking at the transaction from a purely financial perspective, you'll distance yourself from the emotional aspects of selling the property that you've undoubtedly created many memories in. Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling not just a piece of property but also an image, a dream and a lifestyle, you'll be more likely to put in the extra effort of staging and perhaps some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price, they'll also help you create that emotional distance because the home will look less familiar.

Mistake No. 2 -
Not Hiring an Agent.
Although real estate agents command a hefty commission (usually 5 to 6 per cent of the sale price of your home), trying to sell your home on your own, especially if you haven't done it before, is probably ill advised. A good agent will help you set a fair and competitive selling price for your home that will increase your odds of a quick sale. An agent can also help take some of the high emotion out of the process by interacting directly with potential buyers so you don't have to, and eliminating tire kickers who only want to look at your property but have no intention of putting in an offer. An agent will also have more experience negotiating home sales than you do, potentially helping you get more money than you could on your own. Further, if any problems crop up during the process - and they commonly do - an experienced professional will be there to handle them for you. Finally, agents are familiar with all the paperwork and pitfalls involved in real estate transactions and can help make sure the process goes smoothly.

China and it's Real Estate trends

China's economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy.

Population 1.3 billion; 2010.
Pop. Growth 0.5%; 2010 est.
Unemployment 4.1%; 2010 est.

China is the world’s fastest growing economy with a GDP growth rate that averaged 10.2% between 2002 and 2006, reaching a high of 13% in 2007. Inflows of foreign direct investment have risen to over $108 billion annually since 2008. In 2009 China stood as the second-largest economy in the world after the U.S., although in per capita terms the country is still lower middle-income. Economic development has been more rapid in coastal provinces than in the interior. One of the key factors underpinning China’s demand for housing has been the secular urbanization trend. Approximately 200 million rural laborers and their dependents have relocated to urban areas to find work. Between 1996 and 2005 the urban population increased by over 50% from 373 million to just over 562 million; growing by 15 million people annually.

Homeownership Yes. Also long-term land leases
Households 525 million; 2010 est.
Median Home Price In 2009, the average cost of a 968 sqft flat in Beijing was $236,000 USD.
Annual Transactions 10 million; 2010 est.
Estate Agents 25,000 real estate brokerage agencies employing approximately 1 million agents
Large Real Estate Firms Beijing Lianjia, Century21, RE/MAX, Shanghai Housing Exchange, and Shanghai Xingy (Coldwell Banker).
Financial Institutions China’s big four are: People’s Bank of China, China Construction Bank, Industrial and Commercial Bank of China and the Agricultural Bank of China (all state owned).
Mortgage Rates 3.5% to 4.0%; Large cash-based economy.

In 2008, the government announced a $585 billion USD stimulus package with allocations for housing and as a result residential property prices increased. Property prices in Shanghai in April 2010 were up by an average of 9.8% over the previous year and prices in 70 cities rose 12.8% during the same period. However, China’s banking regulator believes that it sees growing credit risks in the real-estate industry and has warned of increasing pressure from non-performing loans. Some economists even predict the “bubble” in China’s property market is going to burst with prices estimated to fall as much as 20% in 2011/12. Going up or down will be determined, in great part by, what China’s government does or doesn’t do.

Friday, August 26, 2011

World Migration and It's Potential on Real Estate

In 2010, Europe hosts the highest number of international migrants aged 20 to 64: 50.5 million or nearly a third of all international migrants of working age (figure 8)5. They account for 11 per cent of the population of working age in the continent.
Asia, the most populous world region, hosts the second largest number of international migrants of working age: 42 million, which represent 27 per cent of all international migrants aged 20 to 64 and just 1.7 per cent of the population of working age in Asia.
In Northern America, the 39.3 million international migrants of working age present in 2010 account for nearly 19 per cent of the working age population in the region. As long established countries of immigration, Canada and the United States of America are major magnets for international migrants. Thus, whereas in 2010 their combined populations of working age account for just 5.4 per cent of the world total, they have 26 per cent of all international migrants of working age.
In 2010, 72 per cent of all international migrants are aged 20 to 64. Globally, 154 million international migrants out of a total of 214 million are aged 20 to 64.

Tuesday, August 23, 2011

Former Beach Boy Brian Wilson’s Home for Sale

Brian Wilson's former home has just hit the market at an asking price of $1.49 million. The former Beach Boy recorded most of his 1998 album Imagination at the St. Charles, Illinois estate, and the studio he used to do so is still on the premises. Sprawling over 6,500 square feet, the house features 5 bedrooms – including two master suites – 6 full baths and 2 half baths.

Much of Wilson’s life was spent in the public eye, beginning with his Beach Boys fame in the 1960’s. This Crane Road Estates subdivision was an ideal location for him to escape from public scrutiny. Here he could relax in his pool, take a walk through the garden or read a book in the library with no interruptions.

The home had many famous visitors including Paul McCartney, Sean Lennon and Eagles’ legend Joe Walsh. It’s fascinating to think about all the musical history that has been made in the home - one wonders what unreleased gems were recorded on the property. Wilson had the basement dug down another 7 feet in order to accommodate the recording studio as well as a mixing room, kitchenette and office space. According to the listing agent, the crooner used the kitchenette and lounge to entertain many guests. Imagine mixing with your family in the space Wilson used to welcome Paul McCartney!




In addition to the large room and historic music studio, the home also boasts a grand staircase in the entry which leads to the second floor bedrooms and baths. Behind the staircase, visitors are greeted by a wall of windows that overlook the pool and pond. The library, solarium and workout room offer additional spaces to relax and rejuvenate. The beamed cathedral ceilings, cherry wood kitchen and brick fireplaces add a touch of luxury that anyone, rock star or otherwise, can appreciate.


Monday, August 22, 2011

Real Estate Still the Best Bet Despite Global Turmoil

Despite slowdown in the global economy, the demand for housing sector will remain strong in the country, and elsewhere in Asia. But the sector will not witness the kind of price appreciation it has seen in the last couple of years. The global slowdown of economy will have positive as well as negative impact on the Indian real estate sector. Les Sohar, founder of sharworldhomes.com and International Real Estate specialist with Re/Max, says that on the whole, because of the domestic demand-driven market, the recent developments in the international front will provide good opportunities to home buyers to fulfill their aspirations to own a house. Despite marginal slowdown of Indian and some other parts of the Asian  economy, it is expected to grow at healthy rate of 7.5%, which will not only reduce the impact of the global slowdown but also make it one of the most attractive investment destinations in the world, along with China.
The downgrade of US economy to AA+ does not indicate any impending default by the country in meeting its obligations in the near future, but it certainly hints at a slowdown of its economy. Besides the US, other developed countries in the Euro zone are also facing a slowdown in the economy. This will affect the export of IT services from India and exports from other Asian countries, which contributes to the demand for residential and office real estate in the country.
However, even in the worst-case scenario , Indian and most of the Asian economy will continue to grow at around 7%. To meet even 7% growth, fresh real estate demands will be there. However, there could be some glut for some time as oversupply situation in certain markets. But in the medium to long term, investment in real estate will continue to give net positive return, which is higher than inflation.

Thursday, August 18, 2011

USA Sunbelt Existing Housing Numbers

Florida
Home Sales Updated May 18 First Quarter 2011 491.6 Thousand units
Qtr. Change: 23.6%
Yr. Change: 17.0%

California
Home Sales Updated May 18 First Quarter 2011 490.4Thousand units
Qtr. Change: 9.3%
Yr. Change: 1.8%

Arizona
Home Sales Updated May 18 First Quarter 2011 174.0 Thousand units
Qtr. Change: 18.8%
Yr. Change: 13.3%

New Mexico
Home Sales Updated May 19 First Quarter 2011 32.4 Thousand units
Qtr. Change: 15.7%
Yr. Change: -4.7%

Texas
Home Sales Updated May 19 First Quarter 2011 401.4 Thousand units
Qtr. Change: 5.7%
Yr. Change: -4.8%

Louisiana
Home Sales Updated May 19 First Quarter 2011 49.2 Thousand units
Qtr. Change: 4.2%
Yr. Change: -0.8%

Mississippi
Home Sales Updated May 19 First Quarter 2011 40.4 Thousand units
Qtr. Change: 2.0%
Yr. Change: -4.7%

Alabama
Home Sales Updated May 18 First Quarter 2011 66.8 Thousand units
Qtr. Change: 4.4%
Yr. Change: 7.2%

Georgia
Home Sales Updated May 18 First Quarter 2011 166.0 Thousand units
Qtr. Change: 9.5%
Yr. Change: -5.3%

South Carolina
Home Sales Updated May 19 First Quarter 2011 68.4 Thousand units
Qtr. Change: 1.2%
Yr. Change: -1.7%

North Carolina
Home Sales Updated May 19 First Quarter 2011 140.8 Thousand units
Qtr. Change: 12.5%
Yr. Change: -0.8%

Tuesday, August 16, 2011

Stock Market vs Real Esate (USA)

While I hate to mix business and politics for the fear that I will upset far too many people, I feel that this is an issue that at this time in our country’s history I must address. Let’s start by saying I’m a middle of the road kind of guy leaning right. I’ve often joked that I’m a liberal conservative. I think both the far left and the far right do more harm than good for our country. However, I believe in the freedom of the press, the freedom of speech, and the right to bear arms, freedom of religion, smaller government and less tax’s. I have voted for both Republican Presidents and Democratic Presidents. But, with that being said, the current Washington makeup is not good for our country and it is far from good for our industry. In my very humble opinion, I believe it would be a much safer bet to buy Real Estate at this time than it is to buy stocks. In just the last week I have seen my wife’s and my stock portfolio lose over $20,000. I don’t know about you, but $20,000 is a big deal to us. At the same time where I own most of my Real Estate for the past few months, I have seen prices rising on Real Estate. Again in my humble opinion I don’t think the stock market for the next two years is going to be a very stable place to put your money. Just now as I was writing this article the “ECONOMIST MAGAZINE” called me about a new online Real Estate Marketing piece they’re creating? I shared with them that I was doing this article and they agreed with me that in the next couple of years Real Estate is probably the safer place to have your money. We have reached the bottom end of the market in almost all areas of the country as far as Real Estate prices go. I’m sure I will get a lot of mail disagreeing with this statement, but I stick by it. At the same time the uncertainty of the stock market due to the debt in the country, the unknowns facing companies with Obamacare and with the uncertainty of taxes over the next two years will hold down the stock market. So the bottom line is, once again in my opinion, Real Estate is a safer haven for the next couple of years. I didn’t lose $20,000 in the last week on my Real Estate holdings, but I did lose $20,000 in the stock market. In fact if my Real Estate holdings went up just 1% I’m up $40,000.00 Last night my wife and I attended a seminar put on by “ Charles Swaab”, I left very depressed. Basically they said we can kiss good bye to any real growth in stocks over the next few years. Now today the stock market has crashed again; going down as of this writing, by over 300 points. However, mortgage rates have also dived. So now you have Real Estate that is actually starting to come back, combined with the lowest rates yet, and a stock market in turmoil. Now is probably the best time in years to buy Real Estate. So as you can see, I’m a true believer in putting my money in Real Estate at this time in the current economy. If you have investors you’re working with they will more than likely share my sentiments as far as to where they would choose to put their money at this time. So Realtors, start spreading the news and start working with investors.

This article was reproduced from Allison James, August 15/2011

Thursday, August 11, 2011

Real Estate is the only INVESTMENT CHOICE, T-BILLS ANY ONE!

If you're thinking about investing in a rental property, experts say low home prices combined with low interest rates make this the best time in years to become a real-estate investor.
What's more, the real-estate market is starting to recover: U.S. houses lost $489 billion in value during the first 11 months of 2009, but that was significantly lower than the $3.6 trillion lost during 2008.
"We haven't seen home prices this low in so many years, coupled with the rates being so low," says Les Sohar, a Real Estate Expert with Re/Max, founder of soharworldhomes.com, who specializes in International  and Investment properties. "When the money is cheap to borrow and the houses are cheap to buy, and you get virtually nothing at the bank and the markets tank, it's absolutely the best time to invest."
Whatever you do, understand that buying investment property is an entirely different experience than buying your primary residence. "When you go to buy your own home, you usually have emotions in it," Sohar says. "When you go to buy an investment property, you need to put all that aside and ask, 'What makes sense?'"

Monday, August 8, 2011

Housing, 10 Worst Markets in the US. Disaster or Opportunity?

When looking at various economic indicators, various lists pop up revealing what analysts name the best and the worst real estate markets across the nation. BusinessInsider.com has named their ten “sickest” housing markets across America naming vacancy rates, total housing units and unemployment as their three determining factors. While several of these cities certainly belong in the bottom 10 real estate markets, some do not. Take Oklahoma City for example. This week, CNBC named Oklahoma City as the second best housing market noting factors such as the city’s underwater mortgages being 30.9% below the national average. We look to BusinessInsider’s own note that the city has an unemployment rate of only 4.9%, nearly half of the national average. Regardless, BusinessInsider’s analysis based on their chosen data points reveals these 10 cities as the worst real estate markets in America:

10. Oklahoma City, OK Homeowner vacancy rates: 5.2% (6th) Rental vacancy rates: 9.6% (34th) Total housing units: 539,077 Unemployment: 4.9%

 9. St. Louis, MO Homeowner vacancy rates: 3.3% (19th) Rental vacancy rates: 11.4% (18th) Total housing units: 1,236,222 Unemployment:8.6%

8. Kansas City, MO Kansas City tied with Detroit for #8. Homeowner vacancy rates: 3.7% (13th) Rental vacancy rates: 11% (22nd) Total housing units: 883,099 Unemployment: 8.4%

7. Detroit, MI Detroit tied with Kansas City for #8. Homeowner vacancy rates: 2.4% (32nd) Rental vacancy rates: 17.2% (3rd) Total housing units: 1,886,537 Unemployment:11.6%

6. Dayton, OH Homeowner vacancy rates: 4.7% (7th) Rental vacancy rates: 10.7% (23rd) Total housing units: 385,160 Unemployment: 9.3%

5. Baton Rouge, LA Homeowner vacancy rates: 3.9% (11th) Rental vacancy rates: 13% (12th) Total housing units: 329,729 Unemployment:8.4%

4. Atlanta, GA Homeowner vacancy rates: 5.4% (4th) Rental vacancy rates: 11.8% (17th) Total housing units: 2,165,495 Unemployment: 9.7%

3. Memphis, TN Homeowner vacancy rates: 4% (9th) Rental vacancy rates: 13.5% (11th) Total housing units: 550,896 Unemployment:10.1%

2. Indianapolis, IN Homeowner vacancy rates: 5.2% (5th) Rental vacancy rates: 13.5% (10th) Total housing units: 757,441 Unemployment: 7.8%

1. Tucson, AZ Homeowner vacancy rates: 6.8% (1st) Rental vacancy rates: 15.9% (6th) Total housing units: 440,909 Unemployment: 7.8%

Sunday, August 7, 2011

Home ownership hits lowest level since 1965 in the USA

 As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to Les Sohar of Re/Max and soharworldhomes.com, the United States is fast becoming a nation of renters.
Last Friday, the Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter -- its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.
It's the lowest level since the Census Bureau started keeping quarterly records back in 1965 (before that, it recorded home ownership rates once a decade). The Census Bureau's statistics, however, do not factor in mortgage delinquencies.
"The combination of falling home prices, limited mortgage credit, continued liquidations, and better rental options is fundamentally changing the way Americans live," said Sohar. "I believe this change is only beginning and is moving the country towards becoming a rentership society." Many people are still technically considered homeowners who occupy their homes, even though they no longer make their mortgage payments. These "homeowners" can squat for months or even years, because banks have been slow to process foreclosures in recent months.
In a February housing finance report, the Obama administration stated that its goal was to "ensure that Americans have access to an adequate range of affordable housing options. This does not mean our goal is for all Americans to be homeowners."
Johnson thinks the market has already hit bottom and home prices should start appreciating, albeit slowly, this year. In addition, with such favorable interest rates and good deals on homes, it's hard for potential buyers to resist taking advantage of the opportunity for too much longer.