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Month: June 2018

3 Of The Top 9 Reasons That The Real Estate Bubble Is Bursting

If you own real estate or are thinking of buying real estate then you better pay attention, because this could be the most important message you receive this year regarding real estate and your financial future. The last five years have seen explosive growth in the real estate market and as a result many people believe that real estate is the safest investment you can make. Well, that is no longer true. Rapidly increasing real estate prices have caused the real estate market to be at price levels never before seen in history when adjusted for inflation! The growing number of people concerned about the real estate bubble means there are less available real estate buyers. Fewer buyers mean that prices are coming down. On May 4, 2006, Federal Reserve Board Governor Susan Blies stated that “Housing has really sort of peaked”. This follows on the heels of the new Fed Chairman Ben Bernanke saying that he was concerned that the “softening” of the real estate market would hurt the economy. And former Fed Chairman Alan Greenspan previously described the real estate market as frothy. All of these top financial experts agree that there is already a viable downturn in the market, so clearly there is a need to know the reasons behind this change. 3 of the top 9 reasons that the real estate bubble will burst include:...

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Find a Qualified, Quality Real Estate Agent in Auckland

With the realty market in the nation's largest city starting to become a more viable option for investors, owners are more open than they've been in the past three years to sell property for top dollar. Auckland is currently seeing the highest level of activity in the country, sparking new, positive trends in the region with the market becoming more viable for everyone. If you're looking to sell in the most competitive property region, you need to have the most competitive agent to get the best prices. Buyers have more opportunities than ever; getting the best price out of them means having quality real estate agents in Auckland on your team. When you're choosing an agent to work with, follow these tips to find someone qualified and successful. Choose by Company While some of the smaller agencies in an area will offer you better rates on commission and fees, realize that this is because of the lower level of experience and influence that the company has. Larger realty agencies have access to more resources, place better listings and attract higher quality agents to work for them. If you're looking to get the best price, finding the best agency is the first step. Working with an agency also guarantees that your agent will be qualified and registered to practice. New Zealand qualifications in realty range from a Certificate in Real...

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Using Real Estate Notes and Installment Sales to Legally Lower Taxes

You may qualify to exclude from your income all or part of any gain from the sale of your main home. This means that, if you qualify, you will not have to pay tax on the gain up to $250,000 if single and $500,000 if married. To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test) and lived in the home as your main home for at least 2 years (the use test) For many parts of the US a half million dollars in exclusion per married couple every 2 or 3 years is more then enough. However, if you live in California and few other places within the US; you can easily max out your exclusion and end up paying capital gains taxes on $100,000 to $300,000 easily. Example: Mary and Joe bought a home in 1980. They had upgraded from a smaller home and the new home was in a very nice neighborhood. The area, over the years increased in value and now the home is worth $850,000. Mary and Joe only paid $129,000 for the property. That is a gain of $721,000 – The house is paid for. In order to avoid paying capital gains on...

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The Areas Surrounding Napa County Are Diverse

Part of the value of being in Napa County is having access to the equally remarkable surrounding areas. When you are in Napa County, you are only a short drive away from an incredible amount of Northern California attractions, destinations, and cities. This includes the Northern California coastline, cities like San Francisco and Sacramento, major-league sports, national parks, award-winning wineries, natural wonders, international festivals, and headliner concerts. Napa County may seem like a world away from civilization when you are enjoying a hike through a local park, but you can get to any major venue in Northern California in just a couple of hours. The city San Francisco is only about an hour away from Napa County. Here, you can enjoy most anything that a world class city offers, and for visitors to the area, this means quite a few attractions including Fisherman’s Wharf, Alcatraz Prison and Island, the Golden Gate Bridge and Park, The San Francisco Cable Cars, China Town, Ghirardelli Square, the San Francisco Giants, Coit Tower, and the San Francisco Zoo. North of Napa County, boating enthusiasts can enjoy Clear Lake, which is by surface area the largest lake in California. Clear lake is also believed to be the one of the oldest lakes in North America and is actually the product of a geological fluke. Also to the north is the capital of California, which...

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Has the Real Estate Market Bottomed Out in Plano TX?

Whenever I write a column, I always want to be optimistic. Optimism is a human condition. That is where we all want to be. You will see some numbers from January that would seem to indicate there is a light at the end of tunnel. Now, there is nothing I would like more than to tell you that things are looking up and 2005 is here again ! We are not there yet.. Remember the old saying that “liars figure and figures lie.” For example, what the federal government and the National Association of Realtors do not include in their reports is the “shadow inventory.” This is comprised of literally hundreds of thousands of foreclosed homes that have not been relisted yet. Believe it or not the lenders don’t always get these marketed immediately. . Another significant omission from the stats is the “expired and terminated listings” where owners have removed their listings waiting to relist when the market improves. So, the Plano home inventory and the days on market stats are skewed and look better than they really are. See below. We all know the real estate market has been in the toilet for the past few years, and that nobody’s buying. It’s tough to buy a house when you have no money and no one will offer you credit. Having said this it must be noticed that...

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