Simply Junior » Real Estate http://simplyjunior.com Personal Finance Blog Thu, 26 Apr 2012 10:23:03 +0000 en hourly 1 Belgium Real Estate on Sale http://simplyjunior.com/belgium-real-estate-on-sale/ http://simplyjunior.com/belgium-real-estate-on-sale/#comments Fri, 24 Jun 2011 19:33:00 +0000 admin http://simplyjunior.com/belgium-real-estate-on-sale/

The 3rd quarter, 4th quarter of 2009 and the 1st quarter of this year has seen quite a surge in the real estate prices in Belgium. The economy of Belgium has seen a sharp recovery and this has been reflected in the residential and the commercial Belgium market. The 3 major regions f Belgium including Brussels have posted strong price rises in the Belgium listings, in spite of the political uncertainty in the country.

Normal dwellings and residential houses were priced at 177,204 euros in the first quarter of this year in the Belgium real estate for sale property. The prices for studio apartments and larger flats were up by 5.9% and the average valuation was at 185,598 euros in the first quarter of 2010. The average price of Belgium for sale for the bungalows and villas also registered a growth and was seen at 2.1% during the same quarter.

Belgium is a remarkable country and is known for its old world charm, tourism and of course, the tulips. The capital city of Brussels is very old and very modern at the same time. This is a place of European art and culture and people from all over the world also come to city for work. In Brussels, even the Belgium real estate for sale properties registered almost a double digit growth especially for the ordinary houses. The sale properties rose to 175, while the price for the smaller apartments and flats rose to about 10% and cost almost 200,000 euros during the same period.

In Belgium both Dutch and French influences are clearly visible. The Dutch speaking Flanders, the average price of the apartments is 5.5% up from the previous quarter, while the prices for the villas increased by 1.25%. The Wallonia region that is French speaking registered a growth of 3.9% for the ordinary houses and 3.4% for the villas. While the price of the apartments have dipped in the region according to the Belgium real estate for sale data that has been released.

The economy will continue growing and is expected to recover noticeably in 2011. The political stability of the country is undergoing changes as there are major disagreements between the Dutch and the French speaking communities. The Belgium rentals have also remained changed though the international rentals and even the rentals in other parts of Europe have undergone an increase in the first quarter of 2010. The Belgium rental yields are almost static at 5.5% (last year in 009, the yields were 5.3%. as of now there is a strong demand for the rental units in Brussels and other parts of Belgium and this should see the rental incomes increase.

]]> http://simplyjunior.com/belgium-real-estate-on-sale/feed/ 0 How to Get Rich in Real Estate http://simplyjunior.com/how-to-get-rich-in-real-estate/ http://simplyjunior.com/how-to-get-rich-in-real-estate/#comments Thu, 23 Jun 2011 09:16:13 +0000 admin http://simplyjunior.com/how-to-get-rich-in-real-estate/

If you do a study of how the rich people make or invest their money then you will find that almost all rich people have either made their money in real estate or they keep their money in real estate. In Warren Buffet, the world’s greatest stock investor has a huge real estate portfolio. Real estate can be one of the easiest investment vehicles for becoming rich. I want to show you the basics of how to get rich in real estate.

Let me just say straight up that there is more than one way to skin a cat. There is more than one way that you can make money in real estate. There are thousands of people becoming millionaires with different investment strategies. Some people buy old houses, renovate them and sell them. Some people buy land, develop it and sell it. Some people subdivide land, some people build skyscrapers, some people buy and hold. I am not going to go through every strategy, but I am going to go through a strategy that I believe anyone can use to become rich.

I am not a financial advisor and this article should not be taken as personal financial advice. Everyone’s situation is different and thus they should invest differently. This article is created purely to educate you in how you can become rich through real estate.

If you have ever looked at real estate you may have hear the terms ‘positively geared’ and ‘ negatively geared’. Positively geared property makes more money in rent than all the expenses combined, this means every month you are putting money in your pocket. Negatively geared property means that you have more expenses than rental income and thus it costs you money each month. People negatively gear property because they hope to make money from capital gains when the property is sold.

The reason most people fail to get rich from real estate is that they try to make money from negatively geared property where they lose money each month. Now there is a lot of money to be made in the area if you are experienced, but most people do not have the experience to get rich using this method. Investors are limited to the number of negatively geared properties they can buy because they only have so much available income to fund these so called investments. This means the most properties people can buy is 2-3.

However, there is a much easier way to invest in property that is much safer and that will allow anyone to become rich and financially free. Positively geared property is harder to find than other properties because anyone can find an investment that loses money, but not everyone can find an investment that makes them money. There are a number of reasons that getting rich through positively geared property is easy. If you want to get rich in real estate then read this.

You Can Have As Many Investments As You Want
With negatively geared properties you are limited by your disposable income. There are only so many properties you can afford if they cost you $1,000 per month to own. But if you are earning $1,000 per month from your property then you can own as many properties as you can get your hands on. This means you can invest more and earn more. This makes it a lot easier to get rich. It is easier to make $10,000 each on 100 properties ($1,000,000) than to make $500,000 each on 2 properties.

You Win When The Market Crashes
People who invest only for capital gains lose out when the market crashes. Because they only make money when they sell if the market crashes then they lose all of their profit. If you have your property positively geared then you often win when the market crashes. When the market crashes rent usually goes up, meaning your income from your investment will increase. You also win if the market goes up because you get capital gains, so really it is a win win situation. Obviously there are some exceptions to this, but it can be much easier to win with positively geared properties than negative ones.

You Can Have The Best Of Both Worlds
A lot of people think you shouldn’t invest in properties for rental income because then you miss out of capital growth. But this is not true, in order to get rich from real estate you need both income and growth and with a positive cashflow property then you can get income and capital growth. Why settle for one of the other when you can have the best of both worlds?

You Can Have Income To Retire
One of the reasons people want to be rich is so that they don’t have to work. Rental income properties give you regular income that you can use to pay for your expenses. This means that you can retire quicker by purchasing positive geared properties. When you retire you will have more time to spend getting rich and investing.

]]> http://simplyjunior.com/how-to-get-rich-in-real-estate/feed/ 0 2010 Real Estate Market Outlook http://simplyjunior.com/2010-real-estate-market-outlook/ http://simplyjunior.com/2010-real-estate-market-outlook/#comments Thu, 23 Jun 2011 03:56:12 +0000 admin http://simplyjunior.com/2010-real-estate-market-outlook/

Following the past 2 years of decline, a full market recovery is highly unlikely during 2010. The strongest developments towards recovery will be experienced in markets where controls existed for avoiding excessive lending, speculative buying and instability. Regions that have been hardest hit during the downfall of the real estate market have taken strong steps to avoid continued excessive decline. Control strategies will begin to show their results throughout 2010, with the hardest hit markets beginning to stabilise, while growth patterns emerge in the markets least affected by the downturn.

Investment approaches will evolve from excessive speculative buying into strategies with improved stability and market demand. Long term investments and buy-to-let ventures are expected to be the strongest growth areas, with fewer risks involved and excellent gains potential due to the exceptionally low priced investment options available in both emerging and established markets.

In order to fully understand the position of world real estate markets and the outlook for 2010, it is necessary to understand issues relating to the lead up to the world real estate market downturn. How these issues have affected the market will assist in understanding the coming year’s ideal investment strategies and selections most suitable for optimum returns.

The Mortgage Market

The mortgage market and loan financing has largely contributed to the sharp downturn in many world real estate markets. The lack of control in the sector resulted in excessive lending and often an absence of credit checks. This caused many mortgage holders to default on payments when the economy became strained.

The extent of the effects the mortgage market has contributed to the downturn in the real estate sector can be seen when comparing countries with traditionally strict lending practices against those where financing was readily and easily obtainable. Controlled markets have resisted severe downturns viewing recovery potential during 2010, while lenient markets continue their struggle to maintain stability.

Responding to the need for financing to assist with the turnaround in the real estate sector, central banks have reduced interest rates, expected to remain at record low levels until sometime in mid 2010. While the ability to finance properties has enabled an optimum moment to enter the real estate market, restrictions on lending criteria has become widespread, leaving many potential buyers unable to qualify for mortgage financing.

Supply and Demand

A slowdown of new construction projects in various locations around the world has been designed to assist in bridging the gap of excessive supply against demand. Locations with an excessive supply of housing for sale on the market are expected to take longer to recuperate from the downturn, as less competition is available for bringing up property prices.

While the prices in these areas remain low, investors searching for long term return potential may be able to find some optimum bargain opportunities, yet the long term growth is likely to be considerably less compared with areas where the supply and demand of properties is ideally balanced.

‘Buyers Market’ Benefits

2010 will continue to be an optimum buyer’s market, where those in a position to purchase will continue to receive and negotiate optimum deals. A sharp turnaround from the seller’s market environment of the recent past, equity enabled investors are facing the ideal market conditions to access the best deals expected to be available for many years. If investing for long term benefits, these buyers may also be in positions to once again benefit from a future turnaround into ‘seller’s market’ conditions.

Long Term Investment Returns

Investments based on long term return scenarios will be the most viable for 2010 in both emerging and established markets. As the real estate market in very few regions are expected to show any significant growth patterns during 2010, short term investment options are unlikely to prove successful.

As the real estate sector emerges from its present turmoil over the coming years, long term investments will provide the most significant growth potential. Long term investments also provide the least risk, an important consideration in the current market situation.

Expanding Buy-to-Let Interest

Investor interest to enter the buy-to-let market is expected to significantly increase during 2010 as the situation of the real estate market has provided ideal foundations for successful buy-to-let investments. As resources have become increasingly limited for many wishing to enter the real estate market, long term letting properties are increasing in demand.

Properties ideally situated for short term lettings will also provide investors with sought after yield returns due to the increasing demand for self catering accommodation. The expected growth in the buy-to-let market is predicted to increase competition in the market, therefore optimising properties for letting and correct advertising will further the potential in each local market.

Ideal Investment Locations

Buyers are increasingly looking into particular areas for investment strategies that suit their personal preferences, with fewer looking into markets purely for its investment potential. This has followed the sharp downturn in many of the emerging markets that were previously popular for short term investment strategies.

As benefits abound across all regions in the current market position, considerations relating to the preferential investment strategy will assist in deciding whether the selected location is ideal for investing during 2010. Research is essential for ensuring the correct location for investments, taking into consideration the local demand, supply and letting market saturation.

Looking into the market’s previous peak levels in comparison with the current downturn levels will provide some information relating to the length of time the investment will take to recuperate previous peaks in a stabilised market. Considering the loan availability and arranging a fixed rate loan for the longest time period possible will enable an excellent financing option to combine with the low priced properties. Taking advantage of the excellent financing options currently available will further benefit with optimising the potential gains obtainable due to the current market conditions.

As it is difficult to pin-point one particular location for providing optimum investment scenarios during 2010, observing conditions relating to the stability and growth potential, along with the supply and demand of the chosen regions will assist in selecting a suitable investment location. These conditions should include the overall stability of the real estate sector, the strength of the country’s economy and the government’s encouragement towards both foreign investment and tourism. Locations that have been hardest hit by the economic and real estate downturn are predicted to require the longest recovery periods, creating less potential investment growth over a similar timeframe in comparison to more stable markets.

]]> http://simplyjunior.com/2010-real-estate-market-outlook/feed/ 0 Winning Real Estate Strategies For 2011 http://simplyjunior.com/winning-real-estate-strategies-for-2011/ http://simplyjunior.com/winning-real-estate-strategies-for-2011/#comments Wed, 22 Jun 2011 12:50:29 +0000 admin http://simplyjunior.com/winning-real-estate-strategies-for-2011/

There is no doubt that there are now many incredible opportunities for investors in the real estate market, but what are the best strategies looking ahead to 2011 and beyond?

The recent housing boom made many real estate investors over confident and sparked a fury of speculative buying. This lead to investors acquiring and gambling on all types of properties without giving much thought to the core principals of successful real estate investment – buying low and investing in long term rental properties. If these investors had only stayed true to these tried and tested means of building real wealth and income through real estate it wouldn’t have mattered what the market did and we wouldn’t be seeing the economy in such a state as it is now.

Fortunately for those of you looking to invest now and take advantage of the many great opportunities out there you will find many bargain priced homes. Combined with today’s record low interest rates you will also find that they hold the keys to incredible cash flow every month. Looking ahead through the end of 2010, 2011 and beyond investors will see the best returns by acquiring discounted properties and building portfolios of passive income producing rental properties. Those that choose this path will not only enjoy a healthy regular income but will be setting themselves up for a big windfall in equity when the market fully recovers.

One of the best ways for investors whether brand new or extremely experienced to harness this proven strategy for successful real estate investing is to invest in multifamily properties. Duplexes are of course the most common property type in this category that provide easy access and can double as a great first home that pays for itself. However areas like Hudson, Massachusetts also offer many great larger multifamily homes that offer even more cash flow. Investing in properties with a large number of bedrooms in the right areas can be rented out by the room. Hudson, MA has many 6 bedroom properties available at less than $100,000. Do the math. 6 rooms rented out at $100 per week each is $31,200 in annual income from just 1 property. Having four properties like this would mean achieving a healthy six figure income a year. Even if you had to finance your acquisitions today’s interest rates mean monthly mortgage payments of less than $400 a month, leaving plenty of cash flow on the table. You could even still afford to pay off the property within three years and then be sitting on a an incredible debt free, money making machine.

]]> http://simplyjunior.com/winning-real-estate-strategies-for-2011/feed/ 0 Texas Real Estate: A Hot Spot For US Real Estate http://simplyjunior.com/texas-real-estate-a-hot-spot-for-us-real-estate/ http://simplyjunior.com/texas-real-estate-a-hot-spot-for-us-real-estate/#comments Wed, 22 Jun 2011 02:34:28 +0000 admin http://simplyjunior.com/texas-real-estate-a-hot-spot-for-us-real-estate/

Out of all the predictions made in regards to the United States economy and real estate scene, many believe that Texas will serve as a hot spot when it comes to buying a house. This means that both buyers and sellers should keep their ears to the ground in regards to the real estate boom that is taking place in Texas. Despite the increases in short-term interest rates that have created a considerably slowed-down housing market, Texas still provides a hearty housing economy. With a little help from a solid low unemployment rate, increases in personal income, and overall low interest rates, the Texas real estate market is thought to prove quite beneficial in the coming years.

For those planning to purchase a home in the summer, you will surely be in luck, especially when you aim to make your residence within the great state of Texas. Today, the million-dollar question of the day pertaining to Texas real estate asks the details on what makes this state so special when it comes to the buying and selling of real estate?

For starters, when you take a look at the housing markets spread across Texas; you will notice that they have kept a consistent pace in providing some of the most affordable shelter throughout the country. Across the nation, cities such as Killeen, Texas (rated fifth least expensive) have been mentioned in housing market reports alerting the public that Texas is indeed a hotbed for residential advancements. Numerous cities in Texas are leading the way in creating a market that easily competes with the national average.

If there were ever a place to situate yourself in Texas, Killeen seems like the place to be. Since 1994, the city has been recognized as a destination that provides housing seen well below the national median. According to a Coldwell Banker survey, the city still presents the fifth lowest prices in regards to Texas real estate. Looking for additional reasonably priced cities located in Texas? Try checking out the ins and outs of El Paso and College Station.

The Lowdown on Killeen, Texas Real Estate

Are you new to the area and wondering what to expect if you’d like to take advantage of the exceptionally satisfying Texas real estate prices in Killeen? This particualar city accommodates more than 100,000 residents, who rely on the close proximity to Fort Hood, a large military base comprised of soldiers and their families. Some of the related activities and attractions found in the city include Central Texas College, the University of Central Texas, rodeos, stock car racing, as well as numerous dining, shopping and entertainment opportunities.

Overall, exploring Texas real estate is highly recommended if you are considering a move to the South. With great weather and great housing opportunities, you can’t go wrong.

]]> http://simplyjunior.com/texas-real-estate-a-hot-spot-for-us-real-estate/feed/ 0 IRA Real Estate Investment http://simplyjunior.com/ira-real-estate-investment/ http://simplyjunior.com/ira-real-estate-investment/#comments Tue, 21 Jun 2011 13:48:03 +0000 admin http://simplyjunior.com/ira-real-estate-investment/ An IRA certainly has greater flexibility than a 401(k) and other plans for one’s retirement. It can be used for virtually any type of investment one chooses, from stocks and bonds to mutual funds to real estate. One might consider whether or not making an IRA real estate investment is a wise move. Many people are under the misconception that doing it at all is illegal. It isn’t illegal, nor, however, is it simple.

Continuing frustration about the phenomenon of low interest rates, coupled with recent memories of the bear market, have caused some investors to seek answers beyond mutual funds, stocks and bonds to plan for a secure retirement savings, and an increasing number of them are beginning to use their IRA funds to purchase real estate. In recent history, they have been quietly picking up everything from single-family homes to tracts of land to commercial apartment buildings with their IRA real estate investment transactions.

While IRA real estate investment is a real possibility, experts are warning that investors exercise caution. The stakes are high and the rules are quite complex. A single mistake can disqualify the tax-deferred status of an IRA in a split second. This forces the investor to shell out the cash for taxes on the full value and penalties.

Property ownership inside of an IRA means forfeiting the better-known tax advantages inherent in investing in real estate. With IRA real estate investments, one is not allowed to deduct mortgage interest nor property taxes. Furthermore, depreciation funds cannot be used. When the property is sold, what would have been a traditional IRA transforms profit into standard income instead of capital gains. Additionally, the IRA has to have enough spare funds to pay all of the expenses related to the property such as taxes, maintenance costs and management frees since the total amount of income has to flow into the IRA and resulting expenses have to be paid out of it.

Research! Research! Research!

If an investor does the research and adheres strictly to common sense policies, he or she can be one of the success stories that are beginning to result from IRA real estate investment strategies. However, if this is the plan, the investor should prepare for a lot of work.

The first step involves finding the right property. The IRA may not be used to purchase one’s own residence or vacation land or home. Next, one has to find a custodian for any IRA that will allow real estate investments. One should not look to one’s own mutual fund company or one’s own local bank for assistance. There are very few IRA custodians who are willing to do this. They can be found by doing a search for “self-directed IRA” or “real estate IRA” on the Web.

There are restrictions involved in selling the property as well. Buying or selling property to oneself, one’s family members or to and from individuals and/or firms that provide services to one’s IRA are, in most cases, also unfortunately, disqualified.

]]> http://simplyjunior.com/ira-real-estate-investment/feed/ 0 Using Real Estate IRA To Increase Your Retirement Funding http://simplyjunior.com/using-real-estate-ira-to-increase-your-retirement-funding/ http://simplyjunior.com/using-real-estate-ira-to-increase-your-retirement-funding/#comments Sat, 18 Jun 2011 08:00:19 +0000 admin http://simplyjunior.com/using-real-estate-ira-to-increase-your-retirement-funding/ Preparing for your retirement by creating a real estate IRA trust is one of the best ways of ensuring that you have made provision for the future. Facing retirement can be a daunting process especially if you are not sure if the investment that you have in your existing IRA will be able to cover the plans that you have. No one wants to carry on having to work when they could be retired, but the fact is that many people find themselves in this position, which could have been avoided with good financial planning and professional advice from a financial adviser.

Real Estate IRA investment is a way of putting the money in your IRA to work for you before you reach the age of retirement. There are a number of ways of accessing the money and using it to benefit you and your family during your retirement. Real Estate IRA investments are one of the most secure and risk free investments that a person can make. Even in an economy that is struggling to perform, real estate is still one of the sectors of the economy where people can make a lot of money.

Ways of investing in a Real Estate IRA for your future

1. Invest a portion of the funds in your IRA into a real estate IRA Investment Trust. This form of investing allows you to buy the shares and stock in any real estate investment fund in the same way that you would invest in mutual funds or an Exchange Trade Fund (EFT). There is very little risk, and although the shares do trade up and down depending on the prices and the state of the stock market, they are a remarkably safe way of letting your money work for you.

2. Invest in a Real Estate IRA self directed account. This type of investment allows you to set up a self directed IRA fund and to transfer an amount of money from your IRA account directly for use from the self directed IRA account. The freeing up of this money allows you to make a direct investment in a property that can be used to create a residual income that must be paid into the IRA. This method of investing requires some thought, but there are many professional independent lending companies who will be able to find you an investment that will fit your risk profile.

3. Hard Money lending. This form of investing works like a loan. You loan the money in yourself directed IRA to individuals or businesses for a short period of time, with an extremely high return on investment. The return is somewhere in the region of 12 – 15% and it does mean that the rewards are great. The risks however are equal, as you are investing in the potential and the promise of a return that is not guaranteed. It is always wise to consult with a private money lending company who will advise you on the best investment for your IRA funds.

Whichever method you choose, you will be satisfied to know that you and creating a Real Estate IRA that will give your retirement funding a healthy injection of money, so that you are able to enjoy retirement.

]]> http://simplyjunior.com/using-real-estate-ira-to-increase-your-retirement-funding/feed/ 0 Real Estate Investing – Getting a Partner Maybe Your Smartest Move http://simplyjunior.com/real-estate-investing-getting-a-partner-maybe-your-smartest-move/ http://simplyjunior.com/real-estate-investing-getting-a-partner-maybe-your-smartest-move/#comments Fri, 10 Jun 2011 16:27:05 +0000 admin http://simplyjunior.com/real-estate-investing-getting-a-partner-maybe-your-smartest-move/

Investing in real estate can be very expensive. Investors are expected to put down a larger amount when purchasing a property than do people who purchase a home to live in it. If you purchase a $100,000 house, you may have to put down $20,000 to purchase the property AND this does not include closing costs, taxes or insurance. Then you may have to spend money on top of this in order to get a property ready to be rented out. Investing can be very expensive which is why many people cannot afford to enter the business. The smartest move you could make is to get a partner.

A partner will have many advantages if you are investing in real estate. A partner can pay for ½ of the down payment costs and the rehab costs. This allows both of you to purchase a property with ½ of the money that you would have needed if you purchased the property by yourself. If you are short on funds a partner can be a great way to help in getting started in investing in real estate.

A partner will give you an extra set of eyes and a level of experience that they bring to the table. They are able to give input on how repairs should be done or how to handle collections of rents. Your partner may have a better idea on how to handle an issue that you would have had by yourself. A partner provides a shoulder to lean on when times are difficult. 

A partner will also help in completing the workload. Sometimes you may need to be at the property at a designated time period in order to meet with contractors or other workers. If you are out of town for business or for vacation, then your partner could be available to meet with the contractor. You could swap off with your partner and have assigned weeks in which one of you is responsible for handling all repairs during the week. 

Having a partner can have many advantages. The biggest challenge is finding a partner that has the right temperament and has a compatible personality that you can work with. If you are not able to get along then your partnership will end in failure.

]]> http://simplyjunior.com/real-estate-investing-getting-a-partner-maybe-your-smartest-move/feed/ 0 The Real Estate Market: It Is Ever Going to Turn Around? http://simplyjunior.com/the-real-estate-market-it-is-ever-going-to-turn-around/ http://simplyjunior.com/the-real-estate-market-it-is-ever-going-to-turn-around/#comments Tue, 07 Jun 2011 02:42:04 +0000 admin http://simplyjunior.com/the-real-estate-market-it-is-ever-going-to-turn-around/

What’s been happening with the real estate market in the United States over the last few years? With unemployment and foreclosure numbers (and bailouts) at all time highs, how long is this recession going to last? Are the experts really able to predict what the economy and real estate market is going to do in the future?

How we got here. If you haven’t heard, the primary reason there are so many foreclosures is because some of our alleged “leaders” decided that almost everyone in the country should own a home, even if they couldn’t afford it (I say “alleged leaders” because true leaders would admit their mistakes and take corrective action, not blame everyone else and give bailouts to banks, but that’s beside the point). Many Americans over-leveraged their incomes and homes by buying more than they could afford. That, coupled with high levels of credit card debt and unemployment, created this economic “consumer unfriendly” climate.

With all the doom and gloom we hear every day, it’s good to see some encouragement once in a while, isn’t it? A few days ago I saw a billboard that said “Recessions 101: the funny thing about recessions is that they end.” How true. In most cases, an economy cannot go down forever. There’s a cycle, and it will turn around. The question is when?

Most economic experts are not in agreement about whether we’ve hit the bottom of this cycle. Still, I’ve had conversations with business owners who have weathered many real estate cycles who say we are not yet at the bottom. With government debt and spending also at an all time high, the value of the U.S. dollar is dropping rapidly, which in turn may cause inflation. What does that mean for the average American? In simple terms it means the $100 you have in your pocket may only be worth $93 next year. It also means that the debt you acquire this year will cost you more to pay off next year. It truly is a time to pay off your debts and have cash reserves in place; something which the average American is not an expert. Dave Ramsey dot com is a good resource for help accomplishing this is.

Job growth may be the number one factor that affects the real estate market, so what has the job market been saying lately? Besides the influx of temporary Census jobs, job growth has been nominal nationwide. Each state has different statistics, but across the country, the unemployment rate remains at 9.6%. As soon as we see these numbers going up consistently (actual numbers, not projections), we can most likely expect the housing market to start rising again.

In light of this info, what trends are we seeing? For the most part, people are spending less on consumer goods and saving more money. Some are even selling their homes and renting instead (or moving in with family). People are becoming adaptive and are finding ways to survive, just like our American ancestors who founded the country. Others are finding new businesses to start and are thriving.

In times like these, it’s important to take the time to keep good track of our income and expenses, and to spend less money than we make. If we do those two things, we will be sitting strong and will be ready to prosper when the economy decides to turn around. For those who don’t want to wait for the economy to turn around, find someone who is doing well in this down economy and copy their habits. You know what “they” say: if you do what someone does, you’ll get what they’ve got, every time.

]]> http://simplyjunior.com/the-real-estate-market-it-is-ever-going-to-turn-around/feed/ 0 Mixed Signals From The Real Estate Market http://simplyjunior.com/mixed-signals-from-the-real-estate-market/ http://simplyjunior.com/mixed-signals-from-the-real-estate-market/#comments Mon, 06 Jun 2011 15:59:04 +0000 admin http://simplyjunior.com/mixed-signals-from-the-real-estate-market/

Many states have been hard hit by the collapse of home prices nationwide and the sluggish economy. Many mortgage brokers expect a slow but steady come back in the real estate market. Still there remains a glut of foreclosures and unsold properties, and job growth remains stagnant.

A few years ago, a booming market was a seller’s market. Buyers were plentiful, the competition driving home prices upward. This led to speculators buying homes for the sole purpose of selling them six to twelve months later to make a tidy profit, further driving home prices upward. As long as the nation had a dynamic economy, it was still possible for homeowners to buy and prosper. It seemed like everyone was getting their share of the American dream.

As housing prices collapsed, followed by a deep recession, unemployment topped out at 12.5%. Housing depreciated by 40% to 50% as the rate of foreclosures soared. Residents who bought before the crash saw their equity disappear.

Now for the good news. Home sales are on the rise. Inventory is still high. Strong price corrections have already occurred. February 2010 sales were up 21% from February 2009. A large number of foreclosures and a glut of unsold condominiums in tourist areas continues to keep prices low. This is good news for buyers, bad news for sellers.

Lower prices mean residents can buy a higher quality home for a reasonable price with a low mortgage rate. Slow but steady growth should result in appreciation of home values allowing those of modest means to make economic progress. Although unemployment remains high, temp agencies are now adding jobs, usually a precursor to real job growth. Job losses have slowed, but until the unemployed get back to work, sales will remain weak. Prices will remain low.

New home building has rebounded ever so slightly as building costs have decreased. This trend is limited to areas near large cities where the jobs are. New home buyers are primarily first time buyers and retirees who are finding affordable again. Construction is proceeding slowly. Builders remain cautious. Major concerns are the weak job sector and the continued glut of foreclosures for sale.

Some investors are betting that the economy will improve and beach cottages and condominiums will be in increasing demand for seasonal rentals. Many investors are buying and leasing to foreclosed homeowners who can’t qualify for a home loan. There has been some return to lease options between investors and renters. There are many opportunities and pitfalls to be considered. The cyclical nature of economies and real estate has to be factored in to any buying decision. An investor buying today should plan to hold his investment several years until the market rebounds.

Expect mixed signals and uncertainty to continue through 2011. Although strong price corrections have already occurred, the real estate market may not yet have hit bottom. Home prices and mortgage rates are expected to remain low throughout 2011. A lot depends on the job sector. The unemployed don’t buy homes. Home owners who lose their jobs may lose their homes to foreclosure. Residents who fear job losses do not buy homes. For those who can and are ready to buy, low home prices are allowing more residents to purchase homes and low cost rentals are bringing seasonal visitors and tourists back to many areas of the country.

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