hOuse TOP view

First Time Homebuyer's Enjoy Real Estate Opportunities

Another indicator that this market has opportunities for consumers.  First Time Homebuyer market

Good Information On Local Kansas City Housing Market

Here are a couple of articles from the Kansas City Star with some factual information on the real estate market.  They answer a lot of questions about the local market her in Kansas City, and it's exactly what I've been presenting to our clients.  Let me know your thoughts when you've read them.

Housing Market, Part 1

Housing Market, Part 2

cotnact me at Anita@IntegrityRealtykc.com

So, What's Good About the Real Estate Market?

To be honest, plenty!

• Interest Rates are extremely low
• Home values have leveled off, which means savings for first time home buyers
• Home values have leveled off, which means savings for move-up home buyers (take a 1-5 percent hit on selling your $200,000 home and gaina 1-10 percent GAIN on a $400,000)
• Investment opportunities are huge - buy up those foreclosures from the banks, fix them up and either rent or re-sell them at a profit.  Banks DO NOT want to hold on to real estate
• Buy CASH - banks and home owners love it and you can get a discount
• The market is very localized - do your homework prior to purchasing, especially investment properties so you are sure you can sell at a profit

1 + 1 = LOTS OF $$$$

In the stock market, it's time to buy when the market is low and doing poorly, and that time is NOW for the real estate industry.  With the stock market acting unstable, it's time to take that money and park it in real estate.  Looking at past real estate market down turns, it has taken 6 years for the cycle to bounce back, but there's something different about this adjustment we are now experiencing.

The difference is some simple math:   Interest Rates at their lowest point in years + the Median Price of a Home down for the first time in a decade = Time to Create Wealth in Real Estate.  In addition to these two facts is the reality that the sub-prime market has hit it's low, meaning that the inventory of foreclosures is going to be dimishing, which in turn means that all of those great bargains are going to be disappearing soon. 

Because of these facts, the real estate market is adjusting faster than in the past, more like a 4 year cycle than a 6 year cycle.  That's good news.

What do we recommend you buy?  The best buys right now are foreclosures that need cosmetic updating (about $15,000 in repairs/remodeling) that are in good neighborhoods, are 3 bedroom homes that can be made into 4 or 5 bedrooms homes.  Other good buys are move-up/trophy homes, townhomes, duplexes and multi-plexes.  The move-up/trophy homes are being drastically reduced, which means bigger savings, as well as bigger gains when the market pops back up.

Please be sure to come to us with your real estate questions - DO NOT RELY on the mass media - it's their job to scare you and to NOT give you the full story.

When is a Good Time to Become a Millionaire?

Right now!  Did you know that more millionaires made their fortunes during the depression than any other time in America's history?  The same priniples that were used then apply now - buy when the market is low and sell when it is high.

That's exactly what some of our clients are doing - building their real estate portfolio now when the market is lulled and interest rates are still awesome.  There are some incredible bargains out there, not only in the Kansas City area, but in other parts of the country.  We just got back from Phoenix where they are experiencing an over-built market - great time to be buying real estate there!

Questions?  Always welcome - just drop me an email.

It's Just Like the Stock Market . . .

. . . the time to buy is when prices are low.  And, not only are real estate prices are low, but so are interest rates.  This combination means big savings, big gains, big investment opportunities, for those who are smart enough to listen to the facts and not the news media.

On top of this, there are record foreclosures numbers occuring, which will soon be petering out, so this window of opportunity is going to be closing soon.  The best type of real estate to purchase?  Property that is in moderate condition (may need flooring, updating in the kitchen and bath, and paint) that is either bank owned or able to sell on a short sale.  These properties generally sell for a considerable amount under market value, while properties that are in good to excellent condition still are selling for at or above market value.

Look for more to come on this topic.

The Media is Missing the Real Story

The real story is that the real estate market presently has more opportunity to generate wealth than it has in a long time.  It is prime time for investors and buyers to purchase, and sell (yes, I said sell), real estate. 

The old adage "Every cloud has a silver lining" is, well, true.  Presently the real estate market is different than it was a few years ago.  In fact, it's actually different than it was yesterday, or 30 years ago, or 30 days ago.  The real story is that the real estate market, like all business markets, experiences change.  And like the curious, adaptable creatures we are, we seek out the abundance and the expansion in the change. 

Now is one of the best times to purchase a home because there are low numbers of buyers out ther which means there is less competition for buyers. Some call this phenomenon a "Buyers Market."  I call it a win-win situation for both buyers and sellers.  In addition, there are investment opportunities for people who want to purchase slightly distressed, bank-owned homes, fix them up in a short period of time, and offer a shiny, like new, home to a new homeowner at market value.  What a wonderful cycle!!

Contact me if you are interested in learning more.  Anita

The Bottom Line on the Fed Cut

In a nutshell, if you have a home equity line of credit based on Prime or short term ARMs, you shoujld see an immediate reduction in your interest rate in teh coming weeks.  However, if you are considering a fixed rate loan or longer term ARM with a fixed perioed of 3 - 10 years, rates on those types of loans are not directly related to the Fed.

Here's a great article explaining the Saga of the US Mortgage Industry  Saga of the US Mortgage Industry.  Thanks to our friend Curtis Schartz with Firstrust Mortgage for providing it to us.

Now is the Time to Invest in Real Estate

I've talked about it before and I'll come back to it again - it is prime time for investing in real estate. 

Here's a true story that will show you why:

The owners of Jackson Construction wanted to purchase distressed homes that had been foreclosed on in the Kansas City northland area.  We identified a property that was for sale for $150,000 in a neighborhood where the average sale price is around $170,000.  Negotiations began with the bank and within three weeks, Jackson Construction began renovations on their newest investment.  The cost?  $130,000 cash.  They will invest approximately $15,000 in material and labor and be able to put the home on the market in a few months for at least $170,000.

Time to Invest

I've just listened to this book, Secrets of the Millionaire Mind, by Harv T. Eckhardt.  One of the "secrets" he talks about is creating "passive" income - income that makes you money without you having to work for it.  The number one recommendation he gives is to purchase real estate, "and WAIT!"

With the foreclosure rate skyrocketing, this is the perfect time to develop your passive income.  Economic indicators are already showing that the softening of the real estate market is about softened out, so you had better start looking at what it will take to build your real estate portfolio while the cost of doing so is at its lowest.

And like Harv says, "Purchase it and wait."  Real estate is going to go up in value over the long haul, and in some cases, will shoot up over a short period of time as well, giving you an incredible rate of return. The best thing about it is that you can use someone else's money to finance it (the bank), another person's to pay the payment (a renter), and you can take all of the taxable advantages!

  Contact me to learn more about 1031 Exchanges, Investment Principles, and more about how to develop your personal wealth portfolio and a FREE booklet on real estate investments, "Top 10 Tips on How NOT to Invest in Real Estate!"  Anita@YourHomeConsultingTeam.com