Archive for March, 2010
Strategies On South Florida Real Estate Investment
Investing in real estates at this day and age has becoming popular all over the world. Many people go into real estate business simply because of the financial security it gives for their future. There are rags to riches stories about people who went into real estate business. They inspire the others to get into the same investment considering the advantages it has to offer. Businesspersons take risk on real estate investments mainly after the equity market instability over the past years. However going into the real estate world is a no joke. You must be familiar with the rules and guidelines of the business.
So you are thinking where is the best place to invest in real estate? Well South Florida has become a very attractive place for real estate investors due to its accessibility and affordability. And with Florida’s beautiful scenery a lot of real estate investment opportunities are getting high in number. If you are serious about investing in real estate in South Florida you have to consider these important things the size the location the future salability and of course the price. Decide on what do you really want. Do you want a practical condominium or a luxury villa overlooking the Florida beach?
If you want to invest on real estate in South Florida you should have a clear idea about the marketplace. It is best to take a survey on the market value comparing the worth and the rent so you can have a clear point of view before entering into any deals.
Another good idea is to do research through the ads in the newspaper and the internet. If you are new to real estate it is better to work locally to avoid unnecessary travel fees.
A lot of people make deals in South Florida to be able to save taxes based on the present tax laws. But this is not recommended because these laws would eventually change.
You must evaluate the South Florida real estate market for different kinds of investments like apartment buildings low down payment properties condominiums or foreclosures. These kinds of properties are usually safer to put money on. If you are just a beginner in terms of real estate business it is a good idea to have a discussion with a real estate consultant in Florida.
Having a wide knowledge about the financial statement can also help. You should know about the operating expenses vacancy costs taxes and loan payments before jumping into an investment.
Hiring a tax advisor is a must. Knowing the ins and outs in the tax situation in Florida is a vital part in the real estate business. Study on how you can take advantage of the tax condition. In line with this seeking advice from an accountant about taxation is also a helpful way to succeed in investing in real estate.
It is essential to see the location of the property yourself before going through the deal especially before signing any contracts. You must take time inspecting the property carefully.
About the writer:nbsp;nbsp;Bill Walker
CEO
www.ForeclosureSpecialReport.com
State Of The Phoenix Real Estate Market Address
To members of Congress President Bush PresidentElect Obama fellow Americans and current and future residents of the Phoenix area the state of the Phoenix residential real estate market is “weary but hopeful.”
Numerous challenges including an onslaught of short sales and foreclosed properties deteriorating home values and the onset of a global recession have rocked the Phoenix real estate market to its core. Indeed recessionary concerns are large on people’s minds and add much uncertainty to the market. These challenges have yet to fully play out in the marketplace so that their full impact is felt and measured.
Government efforts are underway to resolve the current credit crisis though their target and implementation vary by the week. Some efforts are specific and being done by departments whose sole purpose has always been associated with the housing market while larger departments work on grander problems with much less clear and intentional aim. For these it is too difficult to ascertain their net benefit to the Phoenix residential real estate market.
But there are bright spots in the local marketplace. Prices have adjusted substantially downward since the downturn began buyer activity for 2008 showed strength and the market shows some inclination that market forces are working to slowly evolve this housing market to a better state. In addition the Phoenix real estate market is becoming more affordable once again as affordability was the first casualty of the price appreciation the area experienced several years ago. Many buyers sense that there are deals in the marketplace whether a purchase is to be their primary residence a second residence or an investment property. And the Phoenix area’s population continues to grow as more outofstate residents and companies decide to call the Valley of the Sun home.
In summary the Phoenix housing market has been “beaten down but is not to be beaten” and holds hope for improvement in the coming year.
Times Have Been Difficult for the Phoenix Housing Market
The Phoenix housing market is moving into its fourth year of the downturn. As such it is important to look back on its causes briefly in order to look forward.
The Phoenix housing market was victim to excessive speculation and false assumptions that fueled a frenzied pitch in home and real estate demand. This demand spurred rapid appreciation of homes in the greater Phoenix metropolitan area and in other parts of Arizona. This rapid appreciation culminated in as much as a 47 rise in home property values over a 12month period.
The acceleration of appreciation took hold in the latter half of 2004 though the necessary drop in inventory to support this market change could be seen as early as March 2004. Pricing likely peaked in September 2005. By that time inventory had begun to swing the other way again but how far it would rise was not known. Though sales prices peaked in 2005 by no means had prices declined substantially until well into 2006.
Inventory rose dramatically with more than 50000 properties available for sale by 2007 a staggering figure. Arizona was designated a “Declining Market” by Fannie Mae in 2007 as well. This designation had the nearimmediate impact that borrowers using conventional loan products would have be required to put significantly more money down typically from 5 to at least 10 to purchase a new home. Due to this increase borrowers quickly moved to take advantage of FHA loans whereby borrowers only had to put 3 down on a new home. As for foreclosures and short sales these finally took full hold in the market toward the end of 2007.
In 2008 FHA loans have been a significant lending source for activity in the housing market here. Down Payment Assistance usage took off as well though this program was eliminated October 1st. Sales activity has shown some strength with a peak in activity in September likely due to the rush to use down payment assistance before the cutoff. In addition the sales activity has been weighted more heavily at the lower bands of the market consistent with the raised FHA limit of 346250.
Since September activity has been slowing. This is due to that month being a peak associated with down payment assistance usage due to broader economic concerns and due to the onset of the holiday season.
The Extremes of the Local Market
Parts of the Valley are experiencing the worstcase scenario in terms of the impact from the downturn.
Short sales and foreclosures have hit towns on the outskirts of the Valley the hardest. These are towns such as Queen Creek Buckeye Surprise and Maricopa to name a few. These areas share a common thread high speculative investor activity concentrated in new build communities.
These towns grew exponentially as homebuilders sold homes as quickly as they could produce them. In fact new build development saw such prolific investor activity so that many areas that were largely built in the 20042006 timeframe have been subjected to a heavy turnover activity and a heavy decline in valuations.
Today in some communities such as Maricopa foreclosures and short sales fuel more foreclosures and short sales. Because home values have dropped to 4055 of their 2006 values any homeowner who is suddenly faced with a need to move i.e. a job relocation or loss medical hardship or other reason there is no choice but to pursue a short sale or walk away from the property altogether. Of course these actions will have a severe consequence to the homeowner’s credit.
Separately Scottsdale known as a favorite destination for its resorts golfing and shopping among outofstate visitors is trending at a low 7 of listed properties being under contract for purchase. This is likely due to average home prices in Scottsdale being much higher in general while much of the current buyer activity is taking place well below this point.
From a different point of view properties priced above 400000 in value account for just 12 of the closed transactions in 2008 though they make up 23 of available properties. From a “Pending” or under contract status perspective only 4.2 of properties priced above 400000 are currently in escrow to be purchased. Drilling lower into the market available properties priced below 200000 account for 51 of closed transactions in 2008.
Clearly the heavy concentration of sales is at the lower bands of the market which means that home owners with homes priced above 400000 will require different selling strategies than those priced well below 400000. Based on this one can see why the more affluent communities like Scottsdale and Fountain Hills are struggling in comparison to other parts of the Phoenix area.
The Bright Spots
Ironically some of the most active submarkets of the Phoenix housing market is in those very areas where short sales and foreclosures are the most prominent. The precipitous drop in prices is fueling stronger buyer activity in places like Queen Creek and Maricopa.
Queen Creek currently has nearly 23 of listed homes under contract which is the highest rate for the Valley. Maricopa currently has 19 of listed homes under contract. Avondale in the West Valley currently has 18.5 of listed homes under contract.
In terms of the more central Valley areas Chandler and Gilbert are doing relatively well also. Chandler located between Tempe and Gilbert in the Southeast Valley is currently at 16 of available properties being under contract. Gilbert is trending at 17.7 of listed homes currently being under contract.
Where the Deals Are and How They Are Won
The deals in the Phoenix marketplace come from three different sources: foreclosures short sales and wellpositioned sellers.
Foreclosures currently make up approximately 38 of homes currently under contract in the Phoenix area. These properties are often priced very low from the start as the lender that owns them is truly trying to liquidate these properties from their books.
Foreclosures are easier than short sales in that the buyer is dealing with a single owner that has ready decisionmaking power to approve or reject an offer to purchase. The downside is that the lenders can be harder to deal with than a common homeowner can’t be emotionally negotiated with and are in fact singlemindedly focused on the bottom line and will require ‘AsIs’ and other contract documentation that tries to eliminate any future liability.
Short sales likely account for 1018 of properties currently under contract for purchase in the housing market here. Short sales are the most difficult transactions as often they involve the buyer the homeowner the first mortgage lender a second mortgage lender or other lien holder on the property. There could also be HOA liens and tax liens associated with the property. Though the homeowner may sign off on an offer it is really the lenders that have to approve the transaction and provide lien releases as they will be shorted some amount of money through the process.
Like foreclosures there are great deals that can be obtained but a short sale has additional downside risks. Namely the process could take several months before any approval from the lenders is obtained if it is obtained at all. As a result many home buyers will be left disappointed through this scenario.
Lastly the deals in the Phoenix area are found with the traditional committed seller who has appropriately positioned their property based on its condition location and competition. These represent the best transactions in that the buyer often has more power to negotiate full property disclosures are often made available and sellers may be more reasonable to cover the cost of repairs or other items that come up during the inspection process.
An adage in the Phoenix market for sellers is this”There are reasonable buyers for reasonable sellers” meaning that a seller can find a buyer if they position their property well and treat the transaction flexibly and earnestly.
To win a strong value the name of the game isn’t the lowball. The right strategy is knowing what makes a “great deal” and positioning accordingly to get it. That positioning may include the low ball but not necessarily. Buyers who expect to lop off an additional 10 off the price for any property and win the home will find this strategy doesn’t work well and they will often lose out on great values as other buyers step in to purchase them.
Separately for the pure investor who has a strong cash reserve the Trustee’s Sale or Maricopa County foreclosure auction could present an excellent opportunity to obtain properties more cheaply than on the open market.
Market Outlook for 2009
The Phoenix residential real estate market will continue to see serious challenges and changes moving into 2009. Indeed properties that do not compose one of the three areas mentioned above foreclosures short sales and wellpositioned sellers can expect to experience additional price declines as their positioning is not in keeping with current market conditions. Foreclosures and short sales will continue though many will be watching for some level of abatement and how this may spread across the Phoenix real estate market. The current recessionary climate poses additional risks and its influence could dampen real estate activity.
Property owners for homes priced above 400000 will carry additional risk and may experience sharper price declines to adjust to the changing market. All home sellers will continue to face stiff competition to sell their homes. Opportunities for buyers to obtain strong values in the marketplace will continue.
Finally the impact and potential benefit of the current federal government bailout will be more visible over the next six months. If successful these programs could help to stabilize credit markets ease economic concerns which in turn would benefit the housing markets.
Overall the Phoenix housing market will continue to slowly work through the issues it currently faces.
The Phoenix residential real estate market is “weary but hopeful” for the coming year.
About the writer:nbsp;nbsp;Mark owns and operates www.CenterCityCondos.com at Prudential Fox and Roach Realtors in Center City Philadelphia.
He also authors the blog www.Blog.CenterCityCondos.com and has been seen on HGTV and Cn8′s Money Matters.
Starting Your Online Travel Career
I did some research on this and found out that the Online Travel industry is growing fast and the best part is that it is generating numerous jobs and many people around the world are setting up their own online travel companies.
How do they do that? I did that assignment too and I wanted to share the information I learned from those who have succeeded and who have been earning way more than the average income from their previous jobs.
There are sites that are currently providing all the stuff needed to start a new career in this industry and they are termed as Online Travel Consultant or Online Travel Booking Agent. One site I saw provided me some hints on how to do this even in your own home. One company that really got my attention is The Personal Travel Group. Here is what they told me:
First you must watch their informative video which explains the business opportunity to you. After this you complete an online registration application on their web site. You will then be invited to one of their information centres for a full explanation. Once accepted and signed up they will provide you with access to their system your own web site and a password.
Once they have issued you this you can access their booking engine through your site. You are then able to search place a booking on hold for 24hrs or book and pay immediately. Once you start making bookings you will start receiving commission from your own preset margins!! interestinghellip;hellip;..
I did a search on their site and they are an accommodation supplier and even other services such as to make transfers car hire golf and insurance and these products are exclusively available online.
They even have a full team of professional experienced support agents who are standing by for any queries or questions. Bookings can be made either on line or over the telephone and you can ask your support team any questions or doubts you have. I think this is very important for selfstarters.
The most interesting part is how you can earn money from this. They take online bookings in realtime and payments are made through their web site. They even offer different payment methods that will suit your business and that can be stated in the contract given to you by their company.
To cut things short they handle everything and everything is automated. Your task is to expand your clientele and let all the tasks be handled by them. Take note once it is set up the running costs are very low. It is a really great idea. No need for customers to go to a travel agency everything is online. That is the power of The Personal Travel Group technology today.
But be also aware that there are other companies or sites that offer similar start up packages but I found that there were some details that were not quite clear unlike the one I have discussed above and the commissions seemed to be much less.
The important thing here is that a career as an Online Travel Agent or Consultant is one of the best alternatives to increase your income. This could be the best year to get started in the Travel Industry and it is one of the best options to generate a first or second income. With a small investment and your TIME and EFFORT you could make a great success of this type of business. The objective here is to share this information so that it will be helpful to my readers.
nbsp;
About the writer: The author is affiliated with Personal Travel Group one of the fastest growing home business travel career in the market today. It is primarily an agency for holiday accommodation but also includes other travel elements needed to make great holidays. It is serviced by Pro Travel Solutionsreg; international call centres and travel agencies using the Personal Travel Group GDS Global Distribution System. For more information visit their site: http://www.personaltravelgroup.com