Does a day go by that the media is not telling us that the sky is falling, and may fall further with the national housing crisis? Well, do they try to add some perspective? Of course not!
Did you realize that only 1.7% of Fannie Mae and Freddie Mac mortgages are failing? Sure, that is a huge dollar amount, but a fraction of the many more mortgages that are being paid by hard working, responsible home owners across the nation.
The real damage is in the many fraudulent mortgages that were offered by lenders, pushed by home builders, and re-sold by the investment banking industry. Instead of opting for an affordable home that met their real needs, buyers were wooed into purchasing larger, more expensive homes, and did not add in the real cost of ownership with higher utility bills, higher taxes, and longer commutes to and from work. Still, many buyers did not take the risk and remained within their budgets. They are still paying off their loans, working hard and hoping that the next economic stimulus will not ruin their ownership.
Take it all into context, don't believe the headlines, and know that home ownership is a great way to invest your hard earned dollars for both the present and the future.
Tuesday, November 11, 2008
Tuesday, November 4, 2008
VOTE!
Today is election day - get out and VOTE!
If you have already voted, encourage others to do the same, and thanks for participating in our country's most important event.
If you have already voted, encourage others to do the same, and thanks for participating in our country's most important event.
Friday, October 24, 2008
Rated Top Again!
Forbes picks S.A. as top Spot – again !
San Antonio Express – News October 19, 2008 Section D
“You may all go to hell and I will go to Texas,” Davy Crockett once said.
This week, Fortune magazine gave pretty much the same advice for residential real estate.Forbes has named San Antonio and Austin as the top two cities in which to hunker down and to ride out the nation’s financial storm.It also recommended Dallas and Houston as among the top 10 cities with affordable housing and job growth, where a homeowner’s money goes far and homesaren’t likely to fall in value.Forbes noted that Texas is doing well thanks to energy, technology and growth in manufacturing.And the magazine also said San Antonio’s military bases continue to draw military personnel and government workers to the city.
Cities that Fortune says to avoid during the nation’s financial crisis: Los Angeles; Providence, RI; New Orleans; Philadelphia; and Cleveland.---Jennifer Hiller
San Antonio Express – News October 19, 2008 Section D
“You may all go to hell and I will go to Texas,” Davy Crockett once said.
This week, Fortune magazine gave pretty much the same advice for residential real estate.Forbes has named San Antonio and Austin as the top two cities in which to hunker down and to ride out the nation’s financial storm.It also recommended Dallas and Houston as among the top 10 cities with affordable housing and job growth, where a homeowner’s money goes far and homesaren’t likely to fall in value.Forbes noted that Texas is doing well thanks to energy, technology and growth in manufacturing.And the magazine also said San Antonio’s military bases continue to draw military personnel and government workers to the city.
Cities that Fortune says to avoid during the nation’s financial crisis: Los Angeles; Providence, RI; New Orleans; Philadelphia; and Cleveland.---Jennifer Hiller
Tuesday, October 21, 2008
Taxes and Economic Growth
I found this and want to share it. It comes from David R. Kamerschen, Ph.D. Professor of Economics, University of Georgia
Bar Stool Economics Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.
"Since you are all such good customers, he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes So the first four men were unaffected. They would still drink for free.
But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his "fair share?" They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33%savings). The seventh now pay $5 instead of $7 (28%savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $50 instead of $59 (15% savings). Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man, "but he got $9!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got nine times more than I!" "That's true!!" shouted the seventh man. "Why should he get $9 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor." The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists, and college professors, is how our tax system works.
The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
For those who understand, no explanation is needed. For those who do not understand, no explanation is possible!
Bar Stool Economics Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.
"Since you are all such good customers, he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes So the first four men were unaffected. They would still drink for free.
But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his "fair share?" They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33%savings). The seventh now pay $5 instead of $7 (28%savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $50 instead of $59 (15% savings). Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man, "but he got $9!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got nine times more than I!" "That's true!!" shouted the seventh man. "Why should he get $9 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor." The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists, and college professors, is how our tax system works.
The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
For those who understand, no explanation is needed. For those who do not understand, no explanation is possible!
Friday, October 17, 2008
A Wild Market
Wow! I've been trying to make sense of the wild market activity of late, but just can't. It seems that when the "housing bubble" started to burst a year or so agaon, a lot of smart folks tried to point out potential evils and fixes to them. Of course we are in a very charged Presidential campaign, so if a good idea emerges that can't be tied to a Red or Blue candidate, then it is doomed until after the elections. Problem is, we are living the spectacular bust while the campaigns run on.
So, as the Dow jumps and dives hundreds of points daily, as oil is coming down for now, and as commodity prices are staying put for a short time, why can't we find a few good ideas and put them to work? Well, I think the programs put into action the last couple of weeks are just what is needed. But our society has gotten used to immediate gratification and results, so when it takes a little time ( a few months maybe more) to see positive results, the media tells us that the programs are not working and we fall over trying to pass blame and find a new idea that will provide that short term fix.
In the meantime, people are still working, we still have clients looking for homes and the prices are still solid in our area. So, when you are tired of watching the Dow, talking politics, and you want to put your money in a great investment, call us and we'll get you in the real estate market here where the sun shines brighter and things are not as gloomy as Washington and the other media haunts!
So, as the Dow jumps and dives hundreds of points daily, as oil is coming down for now, and as commodity prices are staying put for a short time, why can't we find a few good ideas and put them to work? Well, I think the programs put into action the last couple of weeks are just what is needed. But our society has gotten used to immediate gratification and results, so when it takes a little time ( a few months maybe more) to see positive results, the media tells us that the programs are not working and we fall over trying to pass blame and find a new idea that will provide that short term fix.
In the meantime, people are still working, we still have clients looking for homes and the prices are still solid in our area. So, when you are tired of watching the Dow, talking politics, and you want to put your money in a great investment, call us and we'll get you in the real estate market here where the sun shines brighter and things are not as gloomy as Washington and the other media haunts!
Monday, September 15, 2008
Busy Month
Things have been busy here the last few weeks! We have had scares with two major hurricanes that passed by the San Antonio region, unfortunately damaging many other areas at the same time. Still, we had to prepare and watch out for our clients property as well.
We were also proud to host the annual Texas Realtors Convention in San Antonio this year. It was a week long event that took a year to prepare for, and it was a huge success. The Grand Hyatt was in good shape and the Convention Center was the perfect venue for the 1200+ attendees. Starting with governance meetings and workshops for certain task forces, we got a lot done and see a super future in the Texas Real Estate market. Protecting the property owner is a vital concern of your Texas Realtors and that was the theme during the many meetings that covered the upcoming Legislative year in 2009.
And, Tim graduated in only the fourth class of the Texas Realtors Leadership Program. This prestigious program accepts Realtors that are interested in the industry and the future. It provides an eight month executive program in leadership, communications, and Texas Real Estate legal issues, as well as a super background of the business of real estate. There are only 84 graduates in the central Texas region, so this is a small and elite group of professionals that are here to serve you in all real estate transactions.
And finally in this issue, one of the highlights of the Realtor Convention was the seminar on our economy and housing outlook. Dr. Mark Doutzour from the Texas A&M Real Estate Center, along with Dr. Ray Perryman, a nationally acclaimed economist chaired the program. Their years of experience provided the basis for the analysis that Texas is in good shape compared to the rest of the country; we are continuing to grow economically; Texas would have the 11th largest economy in the world if it was a nation! Still, there are challenges and the housing market will continue to be a buyers market for another 6-9 months (after the elections will start the transition). Their predictions and analysis is available on the Texas A&M Real Estate Center website at: http://recenter.tamu.edu/. Highly recommend this site for anyone interested in many things about our state and the real estate market.
More coming soon!
We were also proud to host the annual Texas Realtors Convention in San Antonio this year. It was a week long event that took a year to prepare for, and it was a huge success. The Grand Hyatt was in good shape and the Convention Center was the perfect venue for the 1200+ attendees. Starting with governance meetings and workshops for certain task forces, we got a lot done and see a super future in the Texas Real Estate market. Protecting the property owner is a vital concern of your Texas Realtors and that was the theme during the many meetings that covered the upcoming Legislative year in 2009.
And, Tim graduated in only the fourth class of the Texas Realtors Leadership Program. This prestigious program accepts Realtors that are interested in the industry and the future. It provides an eight month executive program in leadership, communications, and Texas Real Estate legal issues, as well as a super background of the business of real estate. There are only 84 graduates in the central Texas region, so this is a small and elite group of professionals that are here to serve you in all real estate transactions.
And finally in this issue, one of the highlights of the Realtor Convention was the seminar on our economy and housing outlook. Dr. Mark Doutzour from the Texas A&M Real Estate Center, along with Dr. Ray Perryman, a nationally acclaimed economist chaired the program. Their years of experience provided the basis for the analysis that Texas is in good shape compared to the rest of the country; we are continuing to grow economically; Texas would have the 11th largest economy in the world if it was a nation! Still, there are challenges and the housing market will continue to be a buyers market for another 6-9 months (after the elections will start the transition). Their predictions and analysis is available on the Texas A&M Real Estate Center website at: http://recenter.tamu.edu/. Highly recommend this site for anyone interested in many things about our state and the real estate market.
More coming soon!
Tuesday, August 26, 2008
Back to School
We've been busy the last few weeks, starting with a vacation to northern Michigan for a family reunion. We have closed on three homes for buyers and are ready to start working with more as school gets back in session and the "late" movers come in.
We know that most families are not looking to move unless forced to by work or other reasons. However, this is a great time to be in the market for a home as prices are starting to move up, but interest rates are still low and sellers are motivated. Back to school isn't just for the kiddos, it is time for buyers to study the market they are interested in and formulate a plan to get the best deal.
And don't take all the ads you see for new homes for granted until you study the location and reason they are providing the incentives. Just had a young couple faced with being "upside down" in their two year old home as the builder is now selling the same house plan they bought for $15,000 less! Caveat Emptor!
Call or drop an email and we will be happy to help you set up that plan so you are not faced with a similar situation.
We know that most families are not looking to move unless forced to by work or other reasons. However, this is a great time to be in the market for a home as prices are starting to move up, but interest rates are still low and sellers are motivated. Back to school isn't just for the kiddos, it is time for buyers to study the market they are interested in and formulate a plan to get the best deal.
And don't take all the ads you see for new homes for granted until you study the location and reason they are providing the incentives. Just had a young couple faced with being "upside down" in their two year old home as the builder is now selling the same house plan they bought for $15,000 less! Caveat Emptor!
Call or drop an email and we will be happy to help you set up that plan so you are not faced with a similar situation.
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