Did You Know …

That from 1972 until 2008 it probably made more financial sense to rent than to own your own home in the US. Since 2008 it has been more financially beneficial to own. A real estate property in 2012 is worth 11% more than in 1981 AND you can own it for 63% less than in 1981. (Using average home price. Source: HUD Historical Data)

In 2011, 30% of all houses purchased didn’t utilize mortgage financing? They were purchased with cash. (Source: NAR 2012 Investment & Vacation Home Buyers)

 

Federal Interloping

One must be aware of all the relationships among the US Treasury, the GSEs & the Federal Reserve Bank. Due to the recent changes placing additional charges on borrowers in the residential real estate market for those in judicial foreclosure states does this imply an unequal treatment under the law? Does being a GSE or a congressionally created entity give immunity? This is your government competing with private business on an unequal playing field. Are private businesses (lenders) being held to a different standard?

New Year – New Market

We are currently experiencing major disruptions in all things real estate related, nationally as well as in both Florida & Arizona as we begin 2013. (And more of the same in 2014.) It remains to be seen whether the government’s legislative & executive branch actions taken over the past 5 years will produce different results or more of the same resulting in a lingering malaise. The interactions between laws, regulations & reality in banking, finance & real estate are increasingly looking to me like re-arranging the chairs. It’s work for somebody. But it makes my work increasingly difficult (as other small business people can relate) as a result of not wanting to spend entire days doing nothing but busy work. At some point, real work must be done. That means bringing more chairs (small businesses) into the game. Those who think that everything in life is of a finite amount (as in zero sum game) will continue to rearrange the chairs with no understanding of why things are not changing for the better fast enough.

If you’re into economics, I would recommend George Gilder’s book, POWER & KNOWLEDGE. It’s the explanation that people can feel but can’t put into words. Here they are. I’d recommend that every person running for public office read this book. By the way, I think we are getting more of a “lingering malaise.”

New Year New Blog New Focus

DSCN0174Today is the beginning of the end of vacation. Except for football tonight. There are still people calling me about changes made to my business prior to October, 2012. How many e-mails, letters, phone messages & certified mail have to be sent?