I like these articles. Charles Nenner forecasts a continuation of the deflation until mid-2012 when inflation will once again start to cycle higher.H.L. Quist is a forecaster and a financial advisor with a very good track record…some of his thoughts need to be considered. Â You might find this interesting…
A Real Estate Anomaly – A real estate boom has begun! Conventional wisdom says, the real estate market will not rebound for 3 or 4 years. H. L. Quist says, there is an anomaly occurring that has already created a boom and will drive real estate prices much higher in the next 2 years.
Michael Douville, Commercial and Investment Broker with Realty Executives in Phoenix, Arizona, explains one reason that portions of the Phoenix Housing Market may be very undervalued and potentially an excellent long term cash flowing investment. Investors may consider these cash flowing rental properties as a diversification, Michael Douville can be contacted at michael@michaeldouville.com or at his Scottsdale office…480-451-9339
I have been forecasting rising rental rates as well as declining vacancies for several months. The distressed sellers that have liquidated their homes are restricted from obtaining a new loan for a ” Penalty Period” of at least two years in most cases where a former homeowner has used the “Short Sale” process to close their home and up to 7 years if they have been through the “Foreclosure” process.
These former homeowners generally remain locally; if they cannot buy, they rent. These former homeowners are flooding the rental market; though their credit is flawed, the maturing experience of home ownership makes them potentially well above average tenants. The current Lender underwriting requirements predict multi-year tenancy with little turnover.
This is the Year of Accumulation for Real Estate Investors. Locally The Cromford Report has proclaimed a bottom mitigating much of the downside risk, continuing exceptionally low long-term mortgage rates, and an abundance of prospective tenants in a rising rental environment makes Residential Rentals potentially an exceptional investment.
I am available for consultation, please keep me in mind.
This is todays Arizona Republic’s Article… Courtesy of Catherine Reagor http://www.azcentral.com/arizonarepublic/news/articles/2011/05/18/20110518phoenix-rental-housing-market.html
Michael Douville, Investment and Commercial broker for Realty Executives and Columnist for “The WallstreetGreek” describes a simple Wealth Building strategy exploiting the ordinary Ammortizing Mortgage loan avaliable everywhere today. Purchase a discounted cash flowing residential rental, cushion a holding account for the first year, and allow the loan to pay off. As a zero coupon bond internalizes the returns; the Zero Coupon Rental will internalize the returns by aggressively reducing the principal balance utilizing the free cash flow. A portfolio of excellent properties will grow to produce Free and Clear properties that will continuously produce income in ALL Economic Environments. Michael Douville can be contacted at michael@michaeldouville.com or at his Scottsdale Office…480-451-9339.
Michael Douville, Investment and Commercial broker for Realty Executives and Columnist for “The WallstreetGreek” describes a simple Wealth Building strategy exploiting the ordinary Ammortizing Mortgage loan available everywhere today. Purchase a discounted cash flowing residential rental, cushion a holding account for the first year, and allow the loan to pay off. As a zero coupon bond internalizes the returns; the Zero Coupon Rental will internalize the returns by aggressively reducing the principal balance utilizing the free cash flow. A portfolio of excellent properties will grow to produce Free and Clear properties that will continuously produce income in ALL Economic Environments. Michael Douville can be contacted at michael@michaeldouville.com or at his Scottsdale Office…480-451-9339.
 
Wall Street Greek’s Real Estate Columnist Michael Douville tells us the penalty box is full of potential home buyers, but the power play will be over for many toward the end of this year. In Douville’s home market of the Sand States of the West, that release comprises some 65% or so of buyers back onto the real estate ice.
The penalty box is full! Fannie Mae (OTC: FMCC.OB), owner of upwards of 90% of the conventional home loans in the United Sates, has restricted new loans to troubled borrowers. Distressed home sellers liquidating their properties either through a gut-wrenching foreclosure or a sale with a negotiated settlement via the “Short Sale,” are prohibited from re-purchasing for 24 to 84 months depending on loan default status.
Distressed sales comprise upwards of 65% of current sales in the Sand States of California, Nevada, Florida, and Arizona. The buyers that fueled the bubble of 2005-2007 are liquidating their underwater properties. This segment of the population is huge. Everyone was buying at least one property in the 2005 to 2007 span, and 65% of those buyers fell into trouble in the 2008 to 2010 period. They are now contributing to the distressed sales flood. Continue reading
Thank God for Ben Bernanke! There is a black hole in the Sands and Chairman Bernanke is keeping the event horizon at bay. Lenders are bleeding capital in the Sand States of California, Nevada, Florida, and Arizona. These are the lenders that provided the money for buyers to feed the Real Estate Bubble; they are guilty of “excessive exuberance”.
Many of the loan programs in hindsight were pure folly; guaranteed to fail. However, the lenders lent the money. They did not: recommend or guide the borrowers to any particular loan program from a full menu of loan products; they did not suggest the borrowers misstate their income or outright lie; they did not recommend owner occupied loans when the property was an investment purchase. They just lent the money. The ultimate lenders never met the borrower, they just lent the money. Continue reading
While inflationary expectations pervade, deflationary forces are still at work in the United States. The housing bubble, particularly evident in the “Sand States” of California, Nevada, Arizona, and Florida, has driven housing price decline of as much as 50%. In some areas, home values have declined to below replacement cost. Foreclosures have soared, and families as well as businesses have been disrupted and dislocated due the resulting huge loss of capital.
The housing correction has had consequences beyond just home values. As the values for homes have declined, many related factors have been affected. Insurance companies have lowered premiums for Homeowner and Landlord Policy Coverage due to lower labor and materials costs, as well as valuation changes of as much as 50%. As valuation has deteriorated, County Tax Assessors have reassessed properties, and cash starved governments are receiving lower tax revenues, exacerbating the local recession effects; conversely, individuals will benefit from lower real estate taxes. As the economy has cooled and the Federal Reserve aggressively lowered short-term rates to almost zero, intermediate-term rates collapsed, and long-term rates have dropped to historically low levels. Continue reading
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