Wow, this is bigger than we anticipated - even though Bruce Norris talked three plus years ago about the fragile nature of the real estate market, and the fact that banks and financial institutions would soon reap the reward of their reckless lending practises. At that time, the real estate market was thriving, multiple offers were still common place, and people were reluctant to believe that things would take such a dramatic turn for the worst.
But here we are today and more disastrous news for the American tax payer. This recent news on Freddie and Fannie and their financial woes is important to stay on top of – interests rates have gone down, and stock markets are rallying on the news of the bailout by the federal government. This could turn out to be the biggest and costliest government bailout ever of private companies...
All of the information in the news seems to indicate that the majority of home owners in the US are experiencing financial troubles, or are in various stages of foreclosure. The truth is that 50% of homeowners in the US own their homes free and clear, and approximately 10-15% are experiencing financial hardship. Banks are lowering payments for people and assisting them to reduce their payments - if you are having difficulty in this regard banks are the first port of call - they want to work with you. Additionally, a large percentage of properties on the market today (in CA) are short sales or REO's. This will present many opportunities for investors to participate in this recovery - just be patient and educate yourself as to how you will finance these deals -the non-traditional financing options available. At the SJREI Association http://www.sjrei.net/ we will be focusing on this topic over the next couple of months. This is the way to go right now for us investors.
Tuesday, September 9, 2008
Wednesday, August 27, 2008
Tom Wilson DFW Update
What a great presentation by Tom Wilson at the Mid-Peninsula meeting this month - for those who love data Tom more than performed with a very comprehensive Power Point presentation on Dallas Fort Worth market. We have had many requests for a copy of the presentation - that is available in a PDF format below. Enjoy!
Tom Wilson Presentation Aug 19th, 2008Saturday, August 16, 2008
The Insider Scoop - British Perspective...
I am in San Diego with my family vacationing at the moment. My brother John, his wife, and three girls are here visiting from London also. John owns a Electrical Contracting company in London, and is also a real estate investor. I talked him into flying back to San Jose with me for the Mid-Peninsula meeting on Tuesday evening to chat with him on stage. His company is an electrical contracting one, and they are working on the Olympic tube station currently, as the Olympics will be held in London in four years.
This financial crisis that we are experiencing is not limited to the US - it is becoming more and more apparent that certain European countries have been similarly impacted. John shared his insights particularly on the Irish and English real estate segments. Britain historically has had under-supply with housing, and this is present today also, the one difference is that the financial markets have tightened up so dramatically that it is very difficult to get loans.
Ireland, on the other hand, has been over-build and economically there are lots of issues - larger companies are relocating from there to cheaper locals. Foreign nationals are leaving, chasing the work to other areas, including areas like Poland/Eastern Bloc countries which are beginning to develop economically and create vibrant economic climates for their own citizens. The huge growth that the Irish economy has experienced over the last several years was dubbed the "Celtic tiger" because it took off like a roaring tiger and created a huge amount of wealth there over the years. The foreign nationals that came to work there needed housing, but now those jobs are evaporating, they are moving onto greener pastures, and vacancy rates are increasing. There should be some solid investments available there in the next couple of years.
It is always interesting to hear from someone on the ground what is going on in a given market. John also chatted about the socialized health care system that Britain enjoys, the costs involved, and the high taxes that people pay for that - he pays 45% in taxes...everything comes with a price.
Our speaker Tom Wilson did an excellent presentation on DFW, and the reasons why that market continues to attract a lot of interest. What a great meeting!
This financial crisis that we are experiencing is not limited to the US - it is becoming more and more apparent that certain European countries have been similarly impacted. John shared his insights particularly on the Irish and English real estate segments. Britain historically has had under-supply with housing, and this is present today also, the one difference is that the financial markets have tightened up so dramatically that it is very difficult to get loans.
Ireland, on the other hand, has been over-build and economically there are lots of issues - larger companies are relocating from there to cheaper locals. Foreign nationals are leaving, chasing the work to other areas, including areas like Poland/Eastern Bloc countries which are beginning to develop economically and create vibrant economic climates for their own citizens. The huge growth that the Irish economy has experienced over the last several years was dubbed the "Celtic tiger" because it took off like a roaring tiger and created a huge amount of wealth there over the years. The foreign nationals that came to work there needed housing, but now those jobs are evaporating, they are moving onto greener pastures, and vacancy rates are increasing. There should be some solid investments available there in the next couple of years.
It is always interesting to hear from someone on the ground what is going on in a given market. John also chatted about the socialized health care system that Britain enjoys, the costs involved, and the high taxes that people pay for that - he pays 45% in taxes...everything comes with a price.
Our speaker Tom Wilson did an excellent presentation on DFW, and the reasons why that market continues to attract a lot of interest. What a great meeting!
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