Here are a new mess of Quotes! Enjoy!
"The person who would like to make his dreams come true MUST STAY
AWAKE."
-- Richard Wheeler, Rotarian
"Success is to be measured not so much by the position that one has
reached in life as by the obstacles which he has overcome."
-- Booker T. Washington, Educator
"A hero is no braver than an ordinary man, but he is braver five minutes
longer."
-- Ralph Waldo Emerson
"He who is not courageous enough to take risks will accomplish nothing
in life."
-- Muhammad Ali, World Heavyweight Boxing Champion
"Good management consists in showing average people how to do the work
of superior people"
-- John. D. Rockefeller, American Industrialist
"Do not fear going forward slowly; fear only to stand still."
-- Chinese Proverb
"Once you've done the mental work, there comes a point (where) you have
to throw yourself into the action and put your heart on the line."
-- Phil Jackson, Coach of the Los Angeles Lakers
"Education is of no value and talent is worthless - unless you have an
unwavering aim. Never find yourself without a compass."
-- Condoleezza Rice, Secretary of State
"A man with ability and the desire to accomplish something can do
anything"
-- Donald Kircher, Executive
"All parents believe their children can do the impossible. They thought
it the minute we were born, and no matter how hard we've tried to prove
them wrong, they all think it about us now. And the really annoying
thing is, they're probably right"
-- Cathy Guisewite, Cartoonist
"Victory often goes to the army that makes the least mistakes, not them
most brilliant plans."
-- Charles de Gaulle, 18th President of the French Republic
"He that respects himself is safe from others; he wears a coat of mail
that none can pierce. "
-- Henry Wadsworth Longfellow, author
"I learned that we can do anything, but we can't do everything.. at
least not at the same time. So think of your priorities not in terms of
what activities you do, but when you do them. Timing is everything."
-- Dan Millman, Author
"Self-image sets the boundaries of accomplishment."
-- Maxwell Maltz, Author
"Hard work spotlights the character of people. Some turn up their
sleeves, some turn up their noses and some don't turn up at all."
-- Sam Ewing, Writer
"If Columbus had turned back, no one would have blamed him. No one would
have remembered him, either."
-- Anonymous
"Tears will get you sympathy. Sweat will get you results."
-- Anonymous
"A pound of pluck is worth a ton of luck."
-- James Garfield, 20th President of the United States
"Talent made a poor appearance. Until he married Perseverance."
-- Arthur Guiterman, Editor and Poet
"Outstanding leaders go out of their way to boost the self-esteem of
their personnel. If people believe in themselves, it's amazing what they
can accomplish. "
-- Sam Walton, Founder of Wal-Mart and Sam's Club
"If money is your hope for independence, you will never have it. The
only real security that a man will have in this world is a reserve of
knowledge, experience and ability. "
-- Henry Ford, industrialist
"I always remember an epitaph in the cemetery at Tombstone, Ariz. It
says: "Here lies Jack Williams. He done his damnedest." I think that's
the greatest epitaph a man can have."
-- Harry Truman, 33rd President of the United States
Call me if you need anything!
Monday, April 20, 2009
What Went on Last Week in RE!
INFO THAT HITS US WHERE WE LIVE Last week's March housing starts came in a little worse than expected – a 10.8% decline, to a 510,000 unit annual rate. And new building permits were down 9.0% for March, to an annual rate of 513,000 units.
But all of March's drop in starts was from multiple-family units. Single-family starts were in fact unchanged and have stayed above their January level for the last two months. Some observers feel that after peaking in early 2006 and then falling for three years, housing stats finally hit bottom in Q1 this year. They say the stage is now set for a major home building turnaround that should begin in late 2009 and make a real contribution to the economy in 2010 and 2011. Once excess inventory is sold off, growth in population and tear downs point to a rate of about 1.6 million starts a year – more than three times the current level!
All this may be why a builder confidence index moved up 5 points in April to its highest level since October 2008. The National Association of Home Builders said the overall score was still low, but it was a clear improvement over the last five months. Actually, the April gain was the largest one-month rise since May 2003. And the segment of the index that measures builders' expectations for single-family home sales for the next six months rose 10 points over prior months.
>> Review of Last Week
STILL HEADED IN THE RIGHT DIRECTION... Last week's stock market performance gave us the SIXTH straight week of stocks going UP, although the increases in the indexes were all smaller than before. But last week had some key economic and corporate earnings reports that could have sent things south. The fact that we were still up for the week was good news indeed.
Some of the negative drag on investors came from weaker Retail Sales data for March, particularly disappointing following two months of good news from this sector. We also had Industrial Production showing a slight decline. Finally, Housing Starts and Building Permits came in slightly lower than expected, although things weren't really so bad, as explained above.
On the good side, we had encouraging news from the financials, who are expected to lead us out of this economic contraction. Goldman Sachs announced a $5 billion common stock offering, along with way better than expected Q1 revenues and earnings. We also had better than anticipated Q1 results from two other major banks. Intel beat expectations for earnings and revenue and said the bottom has been reached in the PC market. Google also beat earnings estimates and Consumer Sentiment came in better than expected to round out the week. As one analyst put it, things are far from perfect, but at least the good news is now outweighing the bad.
Investors appear to agree, as the Dow ended the week UP 0.6%, to 8131.33; the S&P 500 was UP 1.5%, to 869.60; and the NASDAQ ended UP 1.2%, to 1673.07.
Rising prices for stocks again saw falling prices in the bond market. The yield on the benchmark 10-year Treasury, which runs counter to price, inched up a bit, to 2.951%. This is still under the 3% threshold and mortgage rates on average dipped slightly during the week, remaining at historically low levels.
>> This Week’s Forecast
MORE HOUSING, MORE TECH... Two of our favorite economic reports wrap up the week, with Existing Home Sales on Thursday, followed by Friday's New Home Sales. Monday's LEI gives us an overall look at the economy and Friday's Durable Goods Orders should also be interesting to ponder.
Most importantly, we get quite a few key corporate earnings reports, with an emphasis on the tech sector. IBM, AT&T, Apple and Mircosoft will all share their Q1 numbers.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of Apr 20 – Apr 24
Date Time (ET) Release For Consensus Prior Impact
M
Apr 20 10:00 Index of Leading Economic Indicators (LEI) Mar –0.2% –0.4% Moderate
W
Apr 22 10:35 Crude Inventories 4/17 NA 5670K Moderate
Th
Apr 23 08:30 Initial Jobless Claims 4/18 630K 610K Moderate
Th
Apr 23 10:00 Existing Home Sales Mar 4.65M 4.72M Moderate
F
Apr 24 08:30 Durable Goods Orders Mar –1.5% 3.4% Moderate
F
Apr 24 08:30 Durable Goods Orders, Ex-Auto Mar –1.2% 3.9% Moderate
F
Apr 24 10:00 New Home Sales Mar 340K 337K Moderate
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. There will be another Fed meeting next week, but they've already said they'll keep the fed funds rate down for an extended period and that's still what virtually all experts expect.
Current Fed Funds Rate: 0%–0.25%
Call me with any questions!
But all of March's drop in starts was from multiple-family units. Single-family starts were in fact unchanged and have stayed above their January level for the last two months. Some observers feel that after peaking in early 2006 and then falling for three years, housing stats finally hit bottom in Q1 this year. They say the stage is now set for a major home building turnaround that should begin in late 2009 and make a real contribution to the economy in 2010 and 2011. Once excess inventory is sold off, growth in population and tear downs point to a rate of about 1.6 million starts a year – more than three times the current level!
All this may be why a builder confidence index moved up 5 points in April to its highest level since October 2008. The National Association of Home Builders said the overall score was still low, but it was a clear improvement over the last five months. Actually, the April gain was the largest one-month rise since May 2003. And the segment of the index that measures builders' expectations for single-family home sales for the next six months rose 10 points over prior months.
>> Review of Last Week
STILL HEADED IN THE RIGHT DIRECTION... Last week's stock market performance gave us the SIXTH straight week of stocks going UP, although the increases in the indexes were all smaller than before. But last week had some key economic and corporate earnings reports that could have sent things south. The fact that we were still up for the week was good news indeed.
Some of the negative drag on investors came from weaker Retail Sales data for March, particularly disappointing following two months of good news from this sector. We also had Industrial Production showing a slight decline. Finally, Housing Starts and Building Permits came in slightly lower than expected, although things weren't really so bad, as explained above.
On the good side, we had encouraging news from the financials, who are expected to lead us out of this economic contraction. Goldman Sachs announced a $5 billion common stock offering, along with way better than expected Q1 revenues and earnings. We also had better than anticipated Q1 results from two other major banks. Intel beat expectations for earnings and revenue and said the bottom has been reached in the PC market. Google also beat earnings estimates and Consumer Sentiment came in better than expected to round out the week. As one analyst put it, things are far from perfect, but at least the good news is now outweighing the bad.
Investors appear to agree, as the Dow ended the week UP 0.6%, to 8131.33; the S&P 500 was UP 1.5%, to 869.60; and the NASDAQ ended UP 1.2%, to 1673.07.
Rising prices for stocks again saw falling prices in the bond market. The yield on the benchmark 10-year Treasury, which runs counter to price, inched up a bit, to 2.951%. This is still under the 3% threshold and mortgage rates on average dipped slightly during the week, remaining at historically low levels.
>> This Week’s Forecast
MORE HOUSING, MORE TECH... Two of our favorite economic reports wrap up the week, with Existing Home Sales on Thursday, followed by Friday's New Home Sales. Monday's LEI gives us an overall look at the economy and Friday's Durable Goods Orders should also be interesting to ponder.
Most importantly, we get quite a few key corporate earnings reports, with an emphasis on the tech sector. IBM, AT&T, Apple and Mircosoft will all share their Q1 numbers.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of Apr 20 – Apr 24
Date Time (ET) Release For Consensus Prior Impact
M
Apr 20 10:00 Index of Leading Economic Indicators (LEI) Mar –0.2% –0.4% Moderate
W
Apr 22 10:35 Crude Inventories 4/17 NA 5670K Moderate
Th
Apr 23 08:30 Initial Jobless Claims 4/18 630K 610K Moderate
Th
Apr 23 10:00 Existing Home Sales Mar 4.65M 4.72M Moderate
F
Apr 24 08:30 Durable Goods Orders Mar –1.5% 3.4% Moderate
F
Apr 24 08:30 Durable Goods Orders, Ex-Auto Mar –1.2% 3.9% Moderate
F
Apr 24 10:00 New Home Sales Mar 340K 337K Moderate
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. There will be another Fed meeting next week, but they've already said they'll keep the fed funds rate down for an extended period and that's still what virtually all experts expect.
Current Fed Funds Rate: 0%–0.25%
Call me with any questions!
Monday, April 13, 2009
Quotes
Here are a new batch of quotes! Enjoy!
"Holding on to anger is like grasping a hot coal with the intent of
throwing it at someone else; you are the one who gets burned."
-- Buddha
"The recipe for perpetual ignorance is: Be satisfied with your opinions
and content with your knowledge."
-- Elbert Hubbard
"Don't bunt. Aim out of the ballpark. Aim for the company of the
immortals"
-- David Ogilvy, Advertising Executive
"Go out on a limb - that's where the fruit is"
-- Will Rogers, Humorist
"When any calamity has been suffered, the first thing to be remembered
is how much has been escaped."
-- Samuel Johnson, Essayist
"All life is a chance. The person who goes farthest is the one who is
willing to do and dare."
-- Dale Carnegie, Writer
"Character consists of what you do on the third and fourth tries."
-- James Michener, Author
"I will prepare, and someday my chance will come."
-- Abraham Lincoln, 16th President of the United States
"There is no passion to be found playing small, in settling for a life
that is less than the one you are capable of living"
-- Nelson Mandela, 11th President of South Africa
"When I was young, I observed that nine out of 10 things I did were
failures, so I did 10 times more work."
-- George Bernard Shaw, Writer and Critic
"A great drive, a powerful determination and a consuming desire will
easily compensate for a little or limited talent."
-- Robert Schuller, Clergyman
"Our aspirations are our possibilities."
-- Robert Browning
"Nothing splendid has ever been achieved except by those who dared
believe that something inside them was superior to circumstance."
-- Bruce Barton, Executive
"The man who removes a mountain begins by carrying away small stones."
-- William Faulkner
"The barriers are not erected that can say to aspiring talents and
industry, "This far and no farther.""
-- Ludwig van Beethoven, Composer
"Divide each difficulty into as many parts as is feasible and necessary
to resolve it."
-- Rene Descartes
"sometimes when you innovate, you make mistake. It is best to admit them
quickly and get on with improving your other innovations."
-- Steve Jobs, Apple Co-Founder
You can get your daily quotes at www.briantracy.com/newsletter/default.aspx
"Holding on to anger is like grasping a hot coal with the intent of
throwing it at someone else; you are the one who gets burned."
-- Buddha
"The recipe for perpetual ignorance is: Be satisfied with your opinions
and content with your knowledge."
-- Elbert Hubbard
"Don't bunt. Aim out of the ballpark. Aim for the company of the
immortals"
-- David Ogilvy, Advertising Executive
"Go out on a limb - that's where the fruit is"
-- Will Rogers, Humorist
"When any calamity has been suffered, the first thing to be remembered
is how much has been escaped."
-- Samuel Johnson, Essayist
"All life is a chance. The person who goes farthest is the one who is
willing to do and dare."
-- Dale Carnegie, Writer
"Character consists of what you do on the third and fourth tries."
-- James Michener, Author
"I will prepare, and someday my chance will come."
-- Abraham Lincoln, 16th President of the United States
"There is no passion to be found playing small, in settling for a life
that is less than the one you are capable of living"
-- Nelson Mandela, 11th President of South Africa
"When I was young, I observed that nine out of 10 things I did were
failures, so I did 10 times more work."
-- George Bernard Shaw, Writer and Critic
"A great drive, a powerful determination and a consuming desire will
easily compensate for a little or limited talent."
-- Robert Schuller, Clergyman
"Our aspirations are our possibilities."
-- Robert Browning
"Nothing splendid has ever been achieved except by those who dared
believe that something inside them was superior to circumstance."
-- Bruce Barton, Executive
"The man who removes a mountain begins by carrying away small stones."
-- William Faulkner
"The barriers are not erected that can say to aspiring talents and
industry, "This far and no farther.""
-- Ludwig van Beethoven, Composer
"Divide each difficulty into as many parts as is feasible and necessary
to resolve it."
-- Rene Descartes
"sometimes when you innovate, you make mistake. It is best to admit them
quickly and get on with improving your other innovations."
-- Steve Jobs, Apple Co-Founder
You can get your daily quotes at www.briantracy.com/newsletter/default.aspx
Wednesday, April 8, 2009
Renting VS. Owning
Should you Rent or Buy?
Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*
In the table below you can see how in some cases, when you factor in tax deductions you can own for less than the cost of rent! To find out if renting or owning is the right choice for you, give me a call and I'll be happy to assist you.
Rent vs. Own
Monthly Payment $1,000 Monthly Payment $855
Insurance $30 Insurance $50
Taxes $0 Taxes $260
MIP Insurance $45
Total Payment $1,030 Total Payment $1,210
Savings
Interest Deduction $0 Interest Deduction $175
Tax Deduction $0 Tax Deduction $75
After Tax
Net Monthly Payment $1,030 Net Monthly Payment $960
* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.
Right now is the best time to buy with interest rates being very low, with a possibility of sinking to levels not seen since the 1960's! If you or anybody you know are currently stuck in the rent trap and want to get out, give me a call or send me an e-mail and together we'll see if buying is the best option for you.
Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*
In the table below you can see how in some cases, when you factor in tax deductions you can own for less than the cost of rent! To find out if renting or owning is the right choice for you, give me a call and I'll be happy to assist you.
Rent vs. Own
Monthly Payment $1,000 Monthly Payment $855
Insurance $30 Insurance $50
Taxes $0 Taxes $260
MIP Insurance $45
Total Payment $1,030 Total Payment $1,210
Savings
Interest Deduction $0 Interest Deduction $175
Tax Deduction $0 Tax Deduction $75
After Tax
Net Monthly Payment $1,030 Net Monthly Payment $960
* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.
Right now is the best time to buy with interest rates being very low, with a possibility of sinking to levels not seen since the 1960's! If you or anybody you know are currently stuck in the rent trap and want to get out, give me a call or send me an e-mail and together we'll see if buying is the best option for you.
The Perfect Storm-Home Prices/Interest Rates
Home Prices – Interest Rates – The Perfect Storm
I ran some numbers today just to show what “Fence Sitters” may be costing themselves by taking no action when the conditions are ideal for most anyone who is in the market and qualifies to buy a home.
The “Fence Sitters” are the ones who will sit and watch and wait, and wait, and wait… they wait for ideal conditions to appear. They are the ones who just know, they can feel it in their bones they know that rates are going to get better, even though they are at close to 40 year lows – right now! They also know that home prices are going to come down and still go lower maybe another 5% or even 10% lower than they are right now, even though home prices in Utah are close to what they were back in 2003! Are you a fence sitter? Don’t miss it, Don’t blink!
First time home buyers or those that haven’t owned in the past three years more than likely will qualify for the governments’ $7500.00 tax credit. Provided they don’t use a grant program. I qualify folks on what they can afford as a Monthly Payment which translates into a Home Price Range. I want to illustrate what waiting will actually cost in real dollars.
Loan Amount Rate Payment Payment Rate Home
$320,000.00 @ 5.25% = $1,766.00 $1,766.00 @ 5.25% = $320,000.00
$320,000.00 @ 6.00% = $1,918.00 $1,766.00 @ 6.00% = $294,700.00
$320,000.00 @ 6.50% = $2,022.00 $1,766.00 @ 6.50% = $279,540.00
$320,000.00 @ 7.00% = $2,128.00 $1,766.00 @ 7.00% = $265,566.00
$320,000.00 @ 7.50% = $2,237.00 $1,766.00 @ 7.50% = $252,680.00
$320,000.00 @ 8.00% = $2,348.00 $1,766.00 @ 8.00% = $240,775.00
Payment will go up substantially for the exact same home!
You simply can’t buy as much home for the very same payment!
FACT: Rates are Phenomenal - now!
FACT: Home Prices are Lower and Fantastic!
FACT: We are in the PERFECT STORM! Remember the movie?
Home prices and interest rates are subject to change and both most likely will go up.
Who do you know who is currently renting but who should buy a home? CALL ME
Who do you know who wants to invest in real estate? CALL ME
Who do you know who want to move up or move down? CALL ME
And don't wait......CALL ME today!
I ran some numbers today just to show what “Fence Sitters” may be costing themselves by taking no action when the conditions are ideal for most anyone who is in the market and qualifies to buy a home.
The “Fence Sitters” are the ones who will sit and watch and wait, and wait, and wait… they wait for ideal conditions to appear. They are the ones who just know, they can feel it in their bones they know that rates are going to get better, even though they are at close to 40 year lows – right now! They also know that home prices are going to come down and still go lower maybe another 5% or even 10% lower than they are right now, even though home prices in Utah are close to what they were back in 2003! Are you a fence sitter? Don’t miss it, Don’t blink!
First time home buyers or those that haven’t owned in the past three years more than likely will qualify for the governments’ $7500.00 tax credit. Provided they don’t use a grant program. I qualify folks on what they can afford as a Monthly Payment which translates into a Home Price Range. I want to illustrate what waiting will actually cost in real dollars.
Loan Amount Rate Payment Payment Rate Home
$320,000.00 @ 5.25% = $1,766.00 $1,766.00 @ 5.25% = $320,000.00
$320,000.00 @ 6.00% = $1,918.00 $1,766.00 @ 6.00% = $294,700.00
$320,000.00 @ 6.50% = $2,022.00 $1,766.00 @ 6.50% = $279,540.00
$320,000.00 @ 7.00% = $2,128.00 $1,766.00 @ 7.00% = $265,566.00
$320,000.00 @ 7.50% = $2,237.00 $1,766.00 @ 7.50% = $252,680.00
$320,000.00 @ 8.00% = $2,348.00 $1,766.00 @ 8.00% = $240,775.00
Payment will go up substantially for the exact same home!
You simply can’t buy as much home for the very same payment!
FACT: Rates are Phenomenal - now!
FACT: Home Prices are Lower and Fantastic!
FACT: We are in the PERFECT STORM! Remember the movie?
Home prices and interest rates are subject to change and both most likely will go up.
Who do you know who is currently renting but who should buy a home? CALL ME
Who do you know who wants to invest in real estate? CALL ME
Who do you know who want to move up or move down? CALL ME
And don't wait......CALL ME today!
My Life as a Realtor.
Things have been really busy! I have been going full tilt lately. Here are some great facts that i have for you. It has been a while.
Don't keep me a secret. Let me know if you have someone that needs to buy, Sell or get rich in Real Estate!
Fasten your seatbelt; we are half way through the ride.
Four years ago the media said I was a pessimist and my predictions for a major housing downturn were ignored or laughed at. Now over the past two month many have considered me an "optimist" since I have been indicating that many regions have hit a real estate bottom and others are only months away from recovery. Of course this does not mean double digit appreciation, but at a minimum recovery does indicate one to three percentage points in average appreciation. Beating inflation is all we need to see excellent returns on real estate investments. As indicated in my most recent book, the leverage (loan) behind a real estate investment creates incremental return on investment when we have appreciation at or close to inflation.
The key message that I would like to project to my readers is that all financial mechanisms follow cycles. The question everyone keeps asking is "How long will this down cycle last?". It is realistic to say that in the next 12 months our recession cycle will make way for a new business cycle. It is just common sense. The same was true during our last up business cycle (2003 to 2006) when we had double digit increases in real estate values. It came to an end, as I predicted. Cycles are inevitable but also predictable. Sure it is difficult to pinpoint the exact month, but it is not too difficult to pinpoint the year, especially during a downturn since these cycles typically last months and not years.
Are home prices closer to stabilization?
Today's National Association of Realtors data showed that "Existing Home Sales" jumped by 5.1% in the month of February. Meanwhile the median sales price fell 15.5 percent to $165,400.
Median selling prices are now equal to 2.9 times median household incomes. Just two years ago they were at a ratio of 4.5 times income. We are now at levels not seen since the housing boom in the 1980's. For those of you who experienced our 1982-1983 recession, you know that it was our worst recession on record since the Great Depression. Immediately after the recession home prices started to rebound and a real estate boom occurred from 1984 to 1989.
Our current recession is not the same as 1982, and therefore this recession will not rebound with a real estate boom. Demand will take some time to catch up with supply (currently we have 9.7 months of supply on the "for sale" marketing). However it is extremely likely to follow past business cycles of stabilization over the next two quarters, followed by increased demand and light appreciation over the next few years.
Most of us like to look back and not forward. If you are a forward thinker, as most entrepreneurs are, then you will want to consider real estate as an essential part of your investment strategy, especially now when the market is at or near bottom.
Ed Ross
Should you Rent or Buy?
Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*
In the table below you can see how in some cases, when you factor in tax deductions you can own for less than the cost of rent! To find out if renting or owning is the right choice for you, give me a call and I'll be happy to assist you.
Rent vs. Own
Monthly Payment $1,000 Monthly Payment $855
Insurance $30 Insurance $50
Taxes $0 Taxes $260
MIP Insurance $45
Total Payment $1,030 Total Payment $1,210
Savings
Interest Deduction $0 Interest Deduction $175
Tax Deduction $0 Tax Deduction $75
After Tax
Net Monthly Payment $1,030 Net Monthly Payment $960
* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.
Right now is the best time to buy with interest rates being very low, with a possibility of sinking to levels not seen since the 1960's! If you or anybody you know are currently stuck in the rent trap and want to get out, give me a call or send me an e-mail and together we'll see if buying is the best option for you
I ran some numbers today just to show what “Fence Sitters” may be costing themselves by taking no action when the conditions are ideal for most anyone who is in the market and qualifies to buy a home.
The “Fence Sitters” are the ones who will sit and watch and wait, and wait, and wait… they wait for ideal conditions to appear. They are the ones who just know, they can feel it in their bones they know that rates are going to get better, even though they are at close to 40 year lows – right now! They also know that home prices are going to come down and still go lower maybe another 5% or even 10% lower than they are right now, even though home prices in Utah are close to what they were back in 2003! Are you a fence sitter? Don’t miss it, Don’t blink!
First time home buyers or those that haven’t owned in the past three years more than likely will qualify for the governments’ $7500.00 tax credit. Provided they don’t use a grant program. I qualify folks on what they can afford as a Monthly Payment which translates into a Home Price Range. I want to illustrate what waiting will actually cost in real dollars.
Loan Amount Rate Payment Payment Rate Home
$320,000.00 @ 5.25% = $1,766.00 $1,766.00 @ 5.25% = $320,000.00
$320,000.00 @ 6.00% = $1,918.00 $1,766.00 @ 6.00% = $294,700.00
$320,000.00 @ 6.50% = $2,022.00 $1,766.00 @ 6.50% = $279,540.00
$320,000.00 @ 7.00% = $2,128.00 $1,766.00 @ 7.00% = $265,566.00
$320,000.00 @ 7.50% = $2,237.00 $1,766.00 @ 7.50% = $252,680.00
$320,000.00 @ 8.00% = $2,348.00 $1,766.00 @ 8.00% = $240,775.00
Payment will go up substantially for the exact same home!
You simply can’t buy as much home for the very same payment!
FACT: Rates are Phenomenal - now!
FACT: Home Prices are Lower and Fantastic!
FACT: We are in the PERFECT STORM! Remember the movie?
Home prices and interest rates are subject to change and both most likely will go up.
I truly believe that once Obama is sworn in as President on January 20th - interest rates are going to go up. I believe they will be around 8% sometime in 2009 - they have to go up to help fix the economic disaster our country is currently facing!
Who do you know who is currently renting but who should buy a home? CALL ME
Who do you know who wants to invest in real estate? CALL ME
Who do you know who want to move up or move down? CALL ME
And don't wait......CALL ME today!
If you have any questions about what you have seen here, Don't hesitate to call me now!
Don't keep me a secret. Let me know if you have someone that needs to buy, Sell or get rich in Real Estate!
Fasten your seatbelt; we are half way through the ride.
Four years ago the media said I was a pessimist and my predictions for a major housing downturn were ignored or laughed at. Now over the past two month many have considered me an "optimist" since I have been indicating that many regions have hit a real estate bottom and others are only months away from recovery. Of course this does not mean double digit appreciation, but at a minimum recovery does indicate one to three percentage points in average appreciation. Beating inflation is all we need to see excellent returns on real estate investments. As indicated in my most recent book, the leverage (loan) behind a real estate investment creates incremental return on investment when we have appreciation at or close to inflation.
The key message that I would like to project to my readers is that all financial mechanisms follow cycles. The question everyone keeps asking is "How long will this down cycle last?". It is realistic to say that in the next 12 months our recession cycle will make way for a new business cycle. It is just common sense. The same was true during our last up business cycle (2003 to 2006) when we had double digit increases in real estate values. It came to an end, as I predicted. Cycles are inevitable but also predictable. Sure it is difficult to pinpoint the exact month, but it is not too difficult to pinpoint the year, especially during a downturn since these cycles typically last months and not years.
Are home prices closer to stabilization?
Today's National Association of Realtors data showed that "Existing Home Sales" jumped by 5.1% in the month of February. Meanwhile the median sales price fell 15.5 percent to $165,400.
Median selling prices are now equal to 2.9 times median household incomes. Just two years ago they were at a ratio of 4.5 times income. We are now at levels not seen since the housing boom in the 1980's. For those of you who experienced our 1982-1983 recession, you know that it was our worst recession on record since the Great Depression. Immediately after the recession home prices started to rebound and a real estate boom occurred from 1984 to 1989.
Our current recession is not the same as 1982, and therefore this recession will not rebound with a real estate boom. Demand will take some time to catch up with supply (currently we have 9.7 months of supply on the "for sale" marketing). However it is extremely likely to follow past business cycles of stabilization over the next two quarters, followed by increased demand and light appreciation over the next few years.
Most of us like to look back and not forward. If you are a forward thinker, as most entrepreneurs are, then you will want to consider real estate as an essential part of your investment strategy, especially now when the market is at or near bottom.
Ed Ross
Should you Rent or Buy?
Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*
In the table below you can see how in some cases, when you factor in tax deductions you can own for less than the cost of rent! To find out if renting or owning is the right choice for you, give me a call and I'll be happy to assist you.
Rent vs. Own
Monthly Payment $1,000 Monthly Payment $855
Insurance $30 Insurance $50
Taxes $0 Taxes $260
MIP Insurance $45
Total Payment $1,030 Total Payment $1,210
Savings
Interest Deduction $0 Interest Deduction $175
Tax Deduction $0 Tax Deduction $75
After Tax
Net Monthly Payment $1,030 Net Monthly Payment $960
* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.
Right now is the best time to buy with interest rates being very low, with a possibility of sinking to levels not seen since the 1960's! If you or anybody you know are currently stuck in the rent trap and want to get out, give me a call or send me an e-mail and together we'll see if buying is the best option for you
Home Prices – Interest Rates – The Perfect Storm
I ran some numbers today just to show what “Fence Sitters” may be costing themselves by taking no action when the conditions are ideal for most anyone who is in the market and qualifies to buy a home.
The “Fence Sitters” are the ones who will sit and watch and wait, and wait, and wait… they wait for ideal conditions to appear. They are the ones who just know, they can feel it in their bones they know that rates are going to get better, even though they are at close to 40 year lows – right now! They also know that home prices are going to come down and still go lower maybe another 5% or even 10% lower than they are right now, even though home prices in Utah are close to what they were back in 2003! Are you a fence sitter? Don’t miss it, Don’t blink!
First time home buyers or those that haven’t owned in the past three years more than likely will qualify for the governments’ $7500.00 tax credit. Provided they don’t use a grant program. I qualify folks on what they can afford as a Monthly Payment which translates into a Home Price Range. I want to illustrate what waiting will actually cost in real dollars.
Loan Amount Rate Payment Payment Rate Home
$320,000.00 @ 5.25% = $1,766.00 $1,766.00 @ 5.25% = $320,000.00
$320,000.00 @ 6.00% = $1,918.00 $1,766.00 @ 6.00% = $294,700.00
$320,000.00 @ 6.50% = $2,022.00 $1,766.00 @ 6.50% = $279,540.00
$320,000.00 @ 7.00% = $2,128.00 $1,766.00 @ 7.00% = $265,566.00
$320,000.00 @ 7.50% = $2,237.00 $1,766.00 @ 7.50% = $252,680.00
$320,000.00 @ 8.00% = $2,348.00 $1,766.00 @ 8.00% = $240,775.00
Payment will go up substantially for the exact same home!
You simply can’t buy as much home for the very same payment!
FACT: Rates are Phenomenal - now!
FACT: Home Prices are Lower and Fantastic!
FACT: We are in the PERFECT STORM! Remember the movie?
Home prices and interest rates are subject to change and both most likely will go up.
I truly believe that once Obama is sworn in as President on January 20th - interest rates are going to go up. I believe they will be around 8% sometime in 2009 - they have to go up to help fix the economic disaster our country is currently facing!
Who do you know who is currently renting but who should buy a home? CALL ME
Who do you know who wants to invest in real estate? CALL ME
Who do you know who want to move up or move down? CALL ME
And don't wait......CALL ME today!
If you have any questions about what you have seen here, Don't hesitate to call me now!
Quotes-Brian E. Betts
I recieve Daily quotes. Please enjoy.
"The greatest good you can do for another is not just to share your
riches, but to reveal to him his own."
-- Benjamin Disraeli
"To make no mistakes is not in the power of man; but from their errors
and mistakes, the wise and the good learn wisdom for the future."
-- Plutarch, Historian
"A champion is one who gets up even when he can't."
-- Jack Dempsey, Heavyweight Boxing Champion
"Trying times are not the times to stop trying."
-- Ray Owen, Writer
"I don't wait for moods. You accomplish nothing if you do that. Your
mind must know it has got to get down to work."
-- Pearl Buck, Novelist
"I sometimes think that the saving grace of America lies in the fact
that the overwhelming majority of Americans are possessed of two great
qualities -- a sense of humor and a sense of proportion. "
-- Franklin Roosevelt, 32nd U.S. president
"You've got to get to the state in life where going for it is more
important than winning or losing"
-- Arthur Ashe, Tennis Player
"A good objective of leadership is to help those who are doing poorly to
do well and to help those who are doing well do even better"
-- Jim Rohn, Motivational Speaker
"Heroism consists of hanging on one minute longer."
-- Norwegian Proverb
"Knowledge is power, but enthusiasm pulls the switch"
-- Ivern Ball, Poet
"Good ideas are not adopted automatically. They must be driven into
practice with courageous patience."
-- Hyman Rickover, Admiral
"So great has been the endurance, so incredible the achievement that, as
long as the sun keeps a set course in heaven, it would be foolish to
despair of the human race."
-- Ernest Woodward, Publisher
"Don't tell people how to do things, tell them what to do and let them
surprise you with their results. "
-- George S. Patton, US Army General
"Effective leadership is not about making speeches or being liked;
leadership is defined by results not attributes."
-- Peter F. Drucker, Author and Management Expert
"Perseverance is not a long race; it is many short races one after
another."
-- Walter Elliott
"Everyone starts from scratch, but not everyone keeps on scratching!"
-- Anonymous
"Nothing is more expensive than a missed opportunity."
-- H. Jackson Brown, Author
"Miracles sometimes occur, but one has to work terribly hard for them"
-- Chaim Weizmann, Chemist
"The first part of success is "Get-to-it-iveness"; the second part of
success is "Stick-to-it-iveness.""
-- Orison Swett Marden, Editor, Success Magazine
If you would like to receive daily Quotes and other great info, cut and paste this into your browser. http://www.briantracy.com/newsletter/default.aspx?ssid=682480cd-9d91-4a09-85fa-9a01d7eeb8c5
"The greatest good you can do for another is not just to share your
riches, but to reveal to him his own."
-- Benjamin Disraeli
"To make no mistakes is not in the power of man; but from their errors
and mistakes, the wise and the good learn wisdom for the future."
-- Plutarch, Historian
"A champion is one who gets up even when he can't."
-- Jack Dempsey, Heavyweight Boxing Champion
"Trying times are not the times to stop trying."
-- Ray Owen, Writer
"I don't wait for moods. You accomplish nothing if you do that. Your
mind must know it has got to get down to work."
-- Pearl Buck, Novelist
"I sometimes think that the saving grace of America lies in the fact
that the overwhelming majority of Americans are possessed of two great
qualities -- a sense of humor and a sense of proportion. "
-- Franklin Roosevelt, 32nd U.S. president
"You've got to get to the state in life where going for it is more
important than winning or losing"
-- Arthur Ashe, Tennis Player
"A good objective of leadership is to help those who are doing poorly to
do well and to help those who are doing well do even better"
-- Jim Rohn, Motivational Speaker
"Heroism consists of hanging on one minute longer."
-- Norwegian Proverb
"Knowledge is power, but enthusiasm pulls the switch"
-- Ivern Ball, Poet
"Good ideas are not adopted automatically. They must be driven into
practice with courageous patience."
-- Hyman Rickover, Admiral
"So great has been the endurance, so incredible the achievement that, as
long as the sun keeps a set course in heaven, it would be foolish to
despair of the human race."
-- Ernest Woodward, Publisher
"Don't tell people how to do things, tell them what to do and let them
surprise you with their results. "
-- George S. Patton, US Army General
"Effective leadership is not about making speeches or being liked;
leadership is defined by results not attributes."
-- Peter F. Drucker, Author and Management Expert
"Perseverance is not a long race; it is many short races one after
another."
-- Walter Elliott
"Everyone starts from scratch, but not everyone keeps on scratching!"
-- Anonymous
"Nothing is more expensive than a missed opportunity."
-- H. Jackson Brown, Author
"Miracles sometimes occur, but one has to work terribly hard for them"
-- Chaim Weizmann, Chemist
"The first part of success is "Get-to-it-iveness"; the second part of
success is "Stick-to-it-iveness.""
-- Orison Swett Marden, Editor, Success Magazine
If you would like to receive daily Quotes and other great info, cut and paste this into your browser. http://www.briantracy.com/newsletter/default.aspx?ssid=682480cd-9d91-4a09-85fa-9a01d7eeb8c5
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