davebondlongbeachrealtor

The “Economy” is terrible!!!

In Uncategorized on December 22, 2011 at 9:09 pm

 

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It’s true that the economy hasn’t bounced back the way we all hoped it would.  One thing I know is that there is always a diamond in the rough.  Those of us who have decide to soldier on are finding that adapting to the current situation might present new opportunities that were previously unseen.  What I do know is that there are people still making sound, productive financial investments in real estateIf they can do it, why can’t you?  

Start with analyzing your local market.  Yes, turn on the news and the national situation is terrible.  Your local market may not reflect what’s going on nationally.  The inventory in Lakewood, Ca has been decreasing for the last few months.  What does fewer homes for sale mean?  Less supply with the same demand equates to higher property values.  The appreciation (increase in home values) may be minimal but property is definitely not going to depreciate (decrease in value) if inventory continues to decrease.  This is just one example of local markets not reflecting whats going on in Detroit and Atlanta.

I’ll venture to assume that your local market isn’t nearly

as bad as you think.  And in

the surrounding areas there probably are good investment opportunities.  There are lots of local agents who would be willing to fill you in on what’s going on in your local market.

 

 

Is Uncle Sam taking your hard earned money?

In Uncategorized on October 21, 2011 at 11:16 pm

Even though unemployment is at record highs, there are still plenty of people working.  If you’re in the middle income tax bracket and have noticed cost of living increasing, it’s becoming more apparent that each dollar doesn’t stretch as far as it used to.  Add gas prices at just under $4.00 a gallon and those Disneyland passes the kids have been begging for might be less of a reality than you thought.  Consider what your tax write off would be if you owned your own home, or maybe an investment property.  My wife and I purchased and investment property at the end of 2009.  When we filed our 2010 tax return, the income write off was considerable.  Yes, our income increased as a result of the income property but we were still well below the next tax bracket.  That means that we were taxed the same percentage but were able to write off a larger “chunk of change”. With expenses, capital improvements, property tax and interest paid on the loan, all as deductible items, the write off amount was in the thousands.  If you’d rather invest that hard earned money into something that will benefit you in the future instead of letting it be used to try to replenish non-existant social security, it’s worth considering.  Getting a larger amount back the next year means that anniversary trip to Hawaii is a GO!

How concerned should I be about shadow inventory’s effect on the market?

In Uncategorized on September 14, 2011 at 6:33 am

First off, what is shadow inventory?  Shadow inventory is all homes that have been repossessed by banks and homes that will be repossessed when the owners decide to stop making the payments.  Standard & Poor’s says, at this rate, it will take about 4 years for all shadow inventory to be resold.  There is a possibility that if too many of these homes are dumped onto the market at the same time, it will depreciate home values even further.  The laws of supply and demand will take effect.  Homes could potentially depreciate.  We’re not talking about another “crash” type drop, and home values WON’T depreciate by half of their current worth again.  If you’re looking to buy a home and you’re nervous that, after you buy, home values could depreciate, consider realistically how much this will effect you.  Most people don’t purchase a home and expect to sell it within a year.  If you’re like most people who are buying a “home” you plan on staying a while.  The real estate market goes up and down and, probably, by the time you’re ready to sell we won’t be in the middle of this downturn.  If you find a home that you can afford and that you love, buy it.  Real Estate is still a good investment.

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