"THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes.
And what direction is our economy moving?
After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline.
So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the "D" word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road.
On the inflation front, last week's Producer Price Index indicated that wholesale inflation plummeted last month - by the most since records began in 1947 - largely due to declines in energy prices. In addition, the Consumer Price Index showed that inflation at the consumer level fell by a record 1.0%, thanks again to lower costs of energy.
When it comes to the direction the economy is heading, the week did end with some hopeful news. Federal Reserve President Jeffrey Lacker said that an economic recovery could begin in 2009 as low interest rates, low energy prices, and less drag from the housing sector may shore up spending. In the meantime, Bonds and home loan rates spent much of last week trading near a key level of technical support called the 200-Day Moving Average, finally moving and staying above this level on Friday. As a result, Bonds and home loan rates ended the week unchanged to slightly better than where they began.
Secure Rents make investing in Apartment buildings, in the best areas of Los Angeles, a great option if you have the cash. If you do not want to just keep it in cash and want to get in on the Buyers Market we are in. And definitely if you are thinking to hold longer then 5 years, you really will do well in this market.
IMHO Keith L.
310-391-0821
Keith @ LambertInc. com
(remove spaces to use above email)
Tuesday, November 25, 2008
Tuesday, November 18, 2008
Uncertainty or are we going to go shopping?
“NOBODY LIKES THE BRINGER OF BAD NEWS."
- Ancient Greek playwright Sophocles.
Last week was far from quiet as financial markets reacted to several pieces of bad economic news brought throughout the week.
The week began with the news that Circuit City filed for Chapter 11 Bankruptcy, and will be closing 150 stores - and this in advance of the holiday season, when most retailers make a larger portion of their profits for the year. Department store Nordstrom reported its growth rate is down 16%, where they were expecting an increase of 10%. Poor economic reports from Best Buy and Macy's followed a few days later, as well as lower future earnings guidance from Wal-Mart and Intel. As if the headlines of the week weren't enough, Friday's Retail Sales report showed that overall retail sales fell for the fourth straight month and plunged to their worst level since record keeping began in 1992. Looks like a pretty dismal holiday shopping season ahead...probably the worst that retailers will have seen in a long, long time.
In addition, there was bad news for the automobile industry as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0. As a result, General Motors stock fell below $3 for the first time since April 13, 1943. Interestingly enough, the automaker was not even making cars at that time but producing only military equipment for WWII.
And the bad news continued on the job front as well, as the Initial Jobless Claims report revealed the highest number of first time unemployment claim since 2001. In addition, Continuing Jobless Claims reached their highest level in 25 years. Remember, poor economic news and a weak labor market usually cause Bonds and home loan rates to improve. This is because fewer jobs and lower confidence about keeping or finding work causes people to spend less. In turn, businesses and retailers lose pricing power, and this is a cycle that keeps inflation - the arch enemy of Bonds and home loan rates - at low levels, especially if oil remains near present reasonable prices.
However, despite all the bad economic news of the week, Bonds and home loan rates were unable to make significant improvements this week
So what do we make of all this? Just look at the big adverts from a very famous local version of "The Donald" with big color adverts in the Sunday LA Times on multiple pages saying "I'm Buying" and looking to make a few big deals while he has cash and most do not.
Yes there is uncertainty. But there is certainly more to be made in the Income Property realm of investing than in today's stock market.
IMHO Keith Lambert
310-391-0821
- Ancient Greek playwright Sophocles.
Last week was far from quiet as financial markets reacted to several pieces of bad economic news brought throughout the week.
The week began with the news that Circuit City filed for Chapter 11 Bankruptcy, and will be closing 150 stores - and this in advance of the holiday season, when most retailers make a larger portion of their profits for the year. Department store Nordstrom reported its growth rate is down 16%, where they were expecting an increase of 10%. Poor economic reports from Best Buy and Macy's followed a few days later, as well as lower future earnings guidance from Wal-Mart and Intel. As if the headlines of the week weren't enough, Friday's Retail Sales report showed that overall retail sales fell for the fourth straight month and plunged to their worst level since record keeping began in 1992. Looks like a pretty dismal holiday shopping season ahead...probably the worst that retailers will have seen in a long, long time.
In addition, there was bad news for the automobile industry as Deutsche Bank downgraded shares of General Motors from hold to sell, giving a price target of $0...yes, $0. As a result, General Motors stock fell below $3 for the first time since April 13, 1943. Interestingly enough, the automaker was not even making cars at that time but producing only military equipment for WWII.
And the bad news continued on the job front as well, as the Initial Jobless Claims report revealed the highest number of first time unemployment claim since 2001. In addition, Continuing Jobless Claims reached their highest level in 25 years. Remember, poor economic news and a weak labor market usually cause Bonds and home loan rates to improve. This is because fewer jobs and lower confidence about keeping or finding work causes people to spend less. In turn, businesses and retailers lose pricing power, and this is a cycle that keeps inflation - the arch enemy of Bonds and home loan rates - at low levels, especially if oil remains near present reasonable prices.
However, despite all the bad economic news of the week, Bonds and home loan rates were unable to make significant improvements this week
So what do we make of all this? Just look at the big adverts from a very famous local version of "The Donald" with big color adverts in the Sunday LA Times on multiple pages saying "I'm Buying" and looking to make a few big deals while he has cash and most do not.
Yes there is uncertainty. But there is certainly more to be made in the Income Property realm of investing than in today's stock market.
IMHO Keith Lambert
310-391-0821
Monday, November 03, 2008
The market just before election time...
“TAKE TIME TO DELIBERATE; BUT WHEN THE TIME FOR ACTION ARRIVES… STOP THINKING AND GO IN.”
- Napoleon Bonaparte.
Taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%.
Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed's lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil…and gas prices, in turn…from skyrocketing again.
Another reason the Fed took action: The Fed’s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week’s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001.
So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .125-.25% worse than where they began.
Very few income properties are on the REO (Real Estate Owned by a bank) lists. Unless you go to areas like Henderson NV or Plamdale or Chula Vista where the rental of units has a very low revenue base. If the rents drop so that you can not make the mortgage... and/or the buyer is unsophisticated (or corrupt)giving a investment property back to the bank is very rare.
Amateur speculation in the single family home rental market is another matter.
Time will tell. Sound Investing in positive cash flowing income properties is what I recommend. Loan rates are good now. But for how much longer?
So to whoever wins the White House tomorrow, may God bless his political advisers with some great insight and clear vision.
Because of the down economy I am making a strong recommendation that you vote NO on any bond item on the ballot tomorrow. We do not have the excess state/county/city revenues to handle more debt now.
My 2 cents.
Keith L.
www.REList.net
- Napoleon Bonaparte.
Taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%.
Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed's lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil…and gas prices, in turn…from skyrocketing again.
Another reason the Fed took action: The Fed’s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week’s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001.
So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .125-.25% worse than where they began.
Very few income properties are on the REO (Real Estate Owned by a bank) lists. Unless you go to areas like Henderson NV or Plamdale or Chula Vista where the rental of units has a very low revenue base. If the rents drop so that you can not make the mortgage... and/or the buyer is unsophisticated (or corrupt)giving a investment property back to the bank is very rare.
Amateur speculation in the single family home rental market is another matter.
Time will tell. Sound Investing in positive cash flowing income properties is what I recommend. Loan rates are good now. But for how much longer?
So to whoever wins the White House tomorrow, may God bless his political advisers with some great insight and clear vision.
Because of the down economy I am making a strong recommendation that you vote NO on any bond item on the ballot tomorrow. We do not have the excess state/county/city revenues to handle more debt now.
My 2 cents.
Keith L.
www.REList.net
Tuesday, October 28, 2008
Another Manic Monday for those in the financial markets
"JUST ANOTHER MANIC MONDAY..." lyrics from The Bangles.
And last week wasn't just another manic Monday, as the markets were wild the entire week. During the past two months in the stock market, there have been 19 trading days with a 3% move. It had previously taken 6 years to see 19 days with a 3% move.
Bonds and home loan rates began the week with a strong rally on news that the world's largest Bond Fund, PIMCO, raised its stake in Mortgage-Backed Securities to its highest in over seven years. Also helping Bonds and home loan rates break above important technical levels were poor earning reports by companies like DuPont, Texas Instruments, Merck, Wachovia, and Boeing.
However, the gains were short lived as both Stocks and Bonds worsened on Friday after heavy selling took place in Asia and Europe. The waves of panic selling started in Japan due to weak earnings reported by Sony and Samsung, then spilled over into the UK as Britain's economy shrank for the first time since 1992, signaling a recession.
And while a strong sell-off in Stocks would typically cause money to flow into Bonds, helping Bonds and home loan rates improve, there is currently a bit of a departure from the normal "see-saw" trading you may typically see between Stocks and Bonds. This is occurring because securities must be liquidated to raise capital. In an effort to offset margin calls, all securities are being cashed in. Additionally, fear from individual investors, where people throw in the towel and want to get out of the market, is creating massive redemptions from fund managers. Despite the continued volatility and massive action of the last week, Bonds and home loan rates ended the week very close to where they began.
So what does this mean to you? Loans are available. You just need to qualify for them and have a real downpayment. Just as always in the income property and Apartment building market.
Banks are not foreclosing on apartment buildings. Apartment owners are enjoying a steady stream of cash flow and income from their investments.
Remember the old saw about not putting all your eggs in one basket. Hope your nest egg was not in the Wall Street basket.
Do you need a good dependable Real Estate investment?
Keith L.
www.REList.net
And last week wasn't just another manic Monday, as the markets were wild the entire week. During the past two months in the stock market, there have been 19 trading days with a 3% move. It had previously taken 6 years to see 19 days with a 3% move.
Bonds and home loan rates began the week with a strong rally on news that the world's largest Bond Fund, PIMCO, raised its stake in Mortgage-Backed Securities to its highest in over seven years. Also helping Bonds and home loan rates break above important technical levels were poor earning reports by companies like DuPont, Texas Instruments, Merck, Wachovia, and Boeing.
However, the gains were short lived as both Stocks and Bonds worsened on Friday after heavy selling took place in Asia and Europe. The waves of panic selling started in Japan due to weak earnings reported by Sony and Samsung, then spilled over into the UK as Britain's economy shrank for the first time since 1992, signaling a recession.
And while a strong sell-off in Stocks would typically cause money to flow into Bonds, helping Bonds and home loan rates improve, there is currently a bit of a departure from the normal "see-saw" trading you may typically see between Stocks and Bonds. This is occurring because securities must be liquidated to raise capital. In an effort to offset margin calls, all securities are being cashed in. Additionally, fear from individual investors, where people throw in the towel and want to get out of the market, is creating massive redemptions from fund managers. Despite the continued volatility and massive action of the last week, Bonds and home loan rates ended the week very close to where they began.
So what does this mean to you? Loans are available. You just need to qualify for them and have a real downpayment. Just as always in the income property and Apartment building market.
Banks are not foreclosing on apartment buildings. Apartment owners are enjoying a steady stream of cash flow and income from their investments.
Remember the old saw about not putting all your eggs in one basket. Hope your nest egg was not in the Wall Street basket.
Do you need a good dependable Real Estate investment?
Keith L.
www.REList.net
Monday, October 06, 2008
Rental Incomes... Still Strong
If you are invested in the rental properties in vital markets you are not feeling the pain that wall street is feeling today.
Rents are Strong. Tenants still are making the rent. The rent roll is still paying the mortgage and insurance and taxes and the management upkeep.
The rental housing providers I know are sill receiving the positive cash flows that their investments were providing prior to the 2008 drop in the stock market.
No wall street type will tell you to take your money out of his control and give it to anyone else to help you diversify. They do not know any other investment. But you, who have some real cash to invest and a future to protect, need to take a portion of your wealth and invest in Real Property. Rental Property. Income Property.
Today's Cap rates and Gross Rent Multipliers are looking better and better.
Residential property can beat almost any recession investment.
How much! How much to Wall Street? How much to income producing land?
Risk is a chance to loose some value. But Whole companies go down to ZERO. Never does an apartment building go to Zero. Real insurance policies (as apposed to swaps/derivatives etc.) insure that your building will get built back up if hit with a typical disaster of fire etc.
Professional portfolio managers (CFP's) charge a few points to manage your money. And people like me as your Real Estate Agent charge a reasonable percentage to manage your tenants and pay the bills for the performing asset. I bet as a percentage of value a property manager is much less expensive than a money manager. I'll check on that.
What type of property would you like to own? A big building with partners? Medium or small building on your own?
Sincerely Keith Lambert
310-391-0821
www.REList.net
Rents are Strong. Tenants still are making the rent. The rent roll is still paying the mortgage and insurance and taxes and the management upkeep.
The rental housing providers I know are sill receiving the positive cash flows that their investments were providing prior to the 2008 drop in the stock market.
No wall street type will tell you to take your money out of his control and give it to anyone else to help you diversify. They do not know any other investment. But you, who have some real cash to invest and a future to protect, need to take a portion of your wealth and invest in Real Property. Rental Property. Income Property.
Today's Cap rates and Gross Rent Multipliers are looking better and better.
Residential property can beat almost any recession investment.
How much! How much to Wall Street? How much to income producing land?
Risk is a chance to loose some value. But Whole companies go down to ZERO. Never does an apartment building go to Zero. Real insurance policies (as apposed to swaps/derivatives etc.) insure that your building will get built back up if hit with a typical disaster of fire etc.
Professional portfolio managers (CFP's) charge a few points to manage your money. And people like me as your Real Estate Agent charge a reasonable percentage to manage your tenants and pay the bills for the performing asset. I bet as a percentage of value a property manager is much less expensive than a money manager. I'll check on that.
What type of property would you like to own? A big building with partners? Medium or small building on your own?
Sincerely Keith Lambert
310-391-0821
www.REList.net
Wednesday, September 24, 2008
Wall Street vs a local street
I just notes that a blue chip stock fund that my sons college savings was in is down 17% since this year. And that is the Good stuff. Blue Chip Stocks. These are companies that own stuff and will not go to zero value when they have problems.
Very few who have income real estate have losses anywhere like that. Anyone with an income producing property is still paying the bills and making the tax and insurance and loan payments. The tenants still need homes etc.
When your stock broker says to diversify... Say "yes I will" and take some of your money and put it in a real asset. Buy an apartment building! Hire a reputable real estate professional to manage it and be safe and diversified.
You want less risk still? Buy some in an area that will not be hit by the same earthquake or hurricane or tornado!
This bail out to Wall Street that the politicians are asking us to buy into is way over the top for me to swallow. Loan backed investment pools should have been rated just like state bonds are rated. Anyone who buys a car will look under the hood. Wall Street sold a lot of these with no one checking. Are these secured loans? Are they performing? How many are seasoned? What percentage had 100% or 95% financing? Stated income and low FICO scores? The shortsighted bought the 'pig in a poke' when they did not look under the hood and bought the investment. Blinded by the higher return. Higher return = Higher risk.
Wall Street is all about risk vs return. The recent "Stock Bomb" wake up call still must reverberate in some of your mental time lines. Stocks based on the future value of the idea that the .com company will be able to leverage into a future business. Smoke and mirrors.
Real estate and housing run up as the latest "who wants to be a millionaire" frenzy got the stock market buy in... In a very big and stupid way.
The Federal Government should not buy out all the bad debt. Uncle Sam is not the Next Biggest Fool. Then that leads to the average taxpayer taking the hit for a stupid wall street suit/executive/snake oil salesman. The investors should possibly go after them in civil court for negligence or some form of malfeasance. But the judge may point out that they bought in and took the risk.
If you can not handle the risk then buy insurance or a safer vehicle to place your money.
There is risk you like and risk you do not like.
Some feel the risk of using a motorcycle is way to risky. And yet they put all their trust in a stock market man to keep them supported in retirement.
Some of you may have enough Capital left to buy an apartment building.
If so and you want a dependable rental income... Call me.
Keith Lambert
310-391-0821
Tuesday, September 16, 2008
The market is not a Train Wreck.
"Treasury Secretary Henry “Hank” Paulson on Sunday: no more federal bailouts...
Finally, someone has hit the brakes where they need to be hit. The federal government and taxpayers such as you and I can’t go bankrolling or brokering the mistakes of Bear Stearns, Countrywide Financial, Fannie Mae and Freddie Mac."
Ok so as long as the lenders can make a real loan to a real client and the terms are not outrageous we are going to have support for the real estate values.
So relax a little. Do not think that you must have a heart attack. Take a bigger view of this correction.
Buy in if you plan on holding 3 or more years. If you are a flipper... Well then you had better be able to do it cheaper and better than the stuff on the market.
Monday, July 21, 2008
Mar Vista on the west side of the hill... Two good deals
Mar Vista has a few deals. there are some good ones that are on the west side of the Mar Vista Hill. It is totally amaising that the ones on the other side of the hill with some city views are going for such hugue prices even in this down market. Even on high traffic streets like Palms. (near Grandview)
So on the SFR deal of the week... The one that I do not think will last long is 13129 Lake Street. At only 775,000 it is just above the lot value. the home has great bones and floor plan that is workable. A front two can garage and some elevation that may someday be a little view if a second story were to be added. Mostly a cosmetic improvement to the interior would be all it needs. Bring it out of the 70's. Easy cosmetic remodel process. Fix it then move in or move in and then Fix it? I like this Fixer. Call me and I'll show you why.
On the Speculator side... The nicest view lot at an OK price in the area is 13000 Warren Ave. On the slope. Not too near the airport but still you will hear the jets. (gotta be honest on that.) But the view is worth it. The back yard slopes down to a wide alley and gives you a great opportunity for redesign and building in a garage and entertaining back yard. The house has no real flow or style worth keeping. A land play and opportunity to build your dream home or to speculate that you can build and sell for a big proffit. Are you a Builder type? Are you deep pockets and want to invest?
Keith
310-391-0821
So on the SFR deal of the week... The one that I do not think will last long is 13129 Lake Street. At only 775,000 it is just above the lot value. the home has great bones and floor plan that is workable. A front two can garage and some elevation that may someday be a little view if a second story were to be added. Mostly a cosmetic improvement to the interior would be all it needs. Bring it out of the 70's. Easy cosmetic remodel process. Fix it then move in or move in and then Fix it? I like this Fixer. Call me and I'll show you why.
On the Speculator side... The nicest view lot at an OK price in the area is 13000 Warren Ave. On the slope. Not too near the airport but still you will hear the jets. (gotta be honest on that.) But the view is worth it. The back yard slopes down to a wide alley and gives you a great opportunity for redesign and building in a garage and entertaining back yard. The house has no real flow or style worth keeping. A land play and opportunity to build your dream home or to speculate that you can build and sell for a big proffit. Are you a Builder type? Are you deep pockets and want to invest?
Keith
310-391-0821
Sunday, June 22, 2008
Mar Vista Community council election for our neighborhood.
Hi All,
I am impressed, 119 votes from Zone 6. Way to go.
I was not even sure that that many could find Mar-Vista Elementary from our side of the hill. LOL (joke)
There are some friendships and many nice people I have met in the Mar Vista community thanks to my involvement here. I feel enriched by my experience.
It looks like I have two more meetings as a board member then I turn over my seat to Marilyn. I wish her luck and smooth sailing.
Sincerely Keith Lambert
MVCC Director for Zone 6
www.MarVista.org
Zone 6
Marilyn Marble 60
Valerie Davidson 35
Keith Lambert 12
Rachel Snowden 12
Total of 119 Zone 6 votes cast. Over twice that of the last election for Zone Director.
I am impressed, 119 votes from Zone 6. Way to go.
I was not even sure that that many could find Mar-Vista Elementary from our side of the hill. LOL (joke)
There are some friendships and many nice people I have met in the Mar Vista community thanks to my involvement here. I feel enriched by my experience.
It looks like I have two more meetings as a board member then I turn over my seat to Marilyn. I wish her luck and smooth sailing.
Sincerely Keith Lambert
MVCC Director for Zone 6
www.MarVista.org
Zone 6
Marilyn Marble 60
Valerie Davidson 35
Keith Lambert 12
Rachel Snowden 12
Total of 119 Zone 6 votes cast. Over twice that of the last election for Zone Director.
Monday, June 02, 2008
Santa Monica Apartment for Rent
Nice Location and Good 1 Bedroom 1 Bath unit
North of Wilshire Blvd. near
Montana Ave. and 18th Street.
View photos of Apt D on 18th St. in Santa Monica
http://good-times.webshots.com/album/563670139EowhZK?vhost=good-times
Property owner is asking $ 1,750 per month and $2,200 SD.
And good credit score and verifiable income.
Keith Lambert
Property Management Line 310-391-0821
A mugger in town? Inflation!
"INFLATION IS AS VIOLENT AS A MUGGER, AS FRIGHTENING AS AN ARMED ROBBER, AND AS DEADLY AS A HIT MAN." Ronald Reagan.
You may not describe the effects of inflation in those strong terms yourself. However the effects of inflation do affect your life, your home, your gas tank and your family wallet. And inflation is also the nemesis of Bonds and therefore home loan rates, because just like inflation erodes the value of the dollars you spend, inflation erodes the value of the fixed return a Bond provides. And last week, Bond pricing worsened on news of inflation, causing home loan rates to move higher by about .25% across the board and reaching the highest levels seen in weeks. According to one of my best loan sources Ed Varon at Pacifica Mortgage.
That will slow buyers down just a little more. And force the prices down a little more. Maybe make it a little more likely that there will be a change of the party in power come election day. Would that be the White House going from Republican to Democrat or in Congress going from Democrat to Republican? I will not make any wild bets on that horse race. LOL
So many properties in my zone have “In Escrow” and “Sold” signs in front of them that I know there are savvy Westside buyers out there scooping up the next renovation project or a quality property for a personal residence knowing that they are getting a deal that is “worth it in the Long Run” Yep. Priced right it still moves on the Westside of LA.
Please call me if you want my insights into what is a good deal on todays market.Keith Lambert
310-391-0821
Friday, May 30, 2008
Props 98 is Great. Unless you are a city or mega developer.
With the upcoming election I would like to recommend that everyone take a look at the article in CityWatch
http://www.citywatchla.com/content/view/1282/
I urge a Yes on 98 and a
very big No on 99.
remember using:
98 is Great
99 is Lying
http://www.citywatchla.com/content/view/1282/
I urge a Yes on 98 and a
very big No on 99.
remember using:
98 is Great
99 is Lying
Tuesday, May 27, 2008
Neighborhood Associations and Community/Neighborhood Councils
I believe that Community starts at the most local level.
- Caring about the neighbors;
- taking care of a Cat or Dog while they are away.
- helping out in some small way like rolling in the trash cans.
- About all the folks on your street;
- becoming a Block Captain.
- going out front to look when a car or house alarm goes off.
- participating in (or running) a Block Party
- Blocks around your home;
- joining in to better a local elementary school.
- joining in a Neighborhood Association. (ie Ven-MarNA)
- Helping your community at large;
- participating in the local city government agencies...
- local councils for Venice or Mar Vista.
- helping in the homeless programs.
- City wide;
- CD 11 - Bill Rosendahl's office
and the upcoming city elections or re-election campaigns etc. - or with party politics on a County or State level.
PURPOSE OF NEIGHBORHOOD COUNCILS
by the CITY CHARTER voted into Law 1999 by the City Council:
"To promote more citizen participation in government and make government more responsive to local needs, a citywide system of neighborhood councils, and a Department of Neighborhood Empowerment is created. Neighborhood councils shall include representatives of the many diverse interests in communities and shall have an advisory role on issues of concern to the neighborhood."
I have filed for re-election as the Zone 6 Director of Mar Vista Community Council. I have diligently attended the board meetings and been a participant of many of the committee meetings of the board. This does not leave a lot of time left over to be a leader in the Ven-Mar NA organization but I will continue to be a big booster for the group. I have set up the web sites and started (their) message board. I have been the editor for the last two newsletters.
I urge all of you to participate as you can at all of the local levels you can. That is what makes a community like ours extra special and a rewarding part of living here in Mar Vista. Most of you are Stakeholders in Venice or Mar Vista. Please come out and vote when that election comes up.
Sincerely, Your Neighbor,
Keith Lambert
Zone 6 Director for MVCC
As posted on http://groups.yahoo.com/group/VenMar/
Wednesday, May 07, 2008
Tuesday, May 06, 2008
March Real Estate News Clip
"The California housing market in March continued to deal with problems in the real estate finance arena, rising numbers of defaults and foreclosures, and concerns about the economy. Sales of detached existing homes fell 24.5 percent from 422,300 homes in March 2007 to 318,830 homes in March 2008. Sales bucked a 4-month trend of increasing monthly sales, falling 6.4 percent compared to the February sales figure of 340,580 homes. The median price also continued its decline against prior month and prior year figures. The March median was $413,980, down a record-setting 29.0 percent from the median of $582,930 a year earlier."
Some of this may be the lower end stuff selling to developer/flipper types. The well off and well maintained property may not be in the sales volume right now. The ones I see actually selling are the better priced homes. The "deals" that are priced right. That may be adding to the heady news above.
On today’s Tuesday caravan there were two items that stood out. One a 1 bedroom Condo for 280,000 and then in Santa Monica a nice owner user type house with units. Or the other item I reviewed (not on Caravan), 40 units with a big price reduction to a 5.4% Cap Rate and good old days GRM or 11.6.
Call me to ask for details if you are interested.
Keith L.
310-391-0821
Some of this may be the lower end stuff selling to developer/flipper types. The well off and well maintained property may not be in the sales volume right now. The ones I see actually selling are the better priced homes. The "deals" that are priced right. That may be adding to the heady news above.
On today’s Tuesday caravan there were two items that stood out. One a 1 bedroom Condo for 280,000 and then in Santa Monica a nice owner user type house with units. Or the other item I reviewed (not on Caravan), 40 units with a big price reduction to a 5.4% Cap Rate and good old days GRM or 11.6.
Call me to ask for details if you are interested.
Keith L.
310-391-0821
Monday, April 21, 2008
Bonds and Intrest Rates - Market flexing in Buyers favor!
There were changes in the news about Bonds and home loan rates last week - but not necessarily all in the "right direction". For most of the week, Bond prices moved lower, causing home loan rates to rise - home loan rates worsened by about .25% for the week overall.
One silver lining...some of the abuse that Bonds took was at the hands of somewhat positive economic news. Remember that positive or strong economic news tends to benefit Stocks, which in turn can pull money out of Bonds - which causes Bond prices to worsen and home loan rates to rise. So when news hit of a far better than forecast Retail Sales Report and much better than expected earnings reports from giants like Google, the financial markets responded by flowing money over into Stocks, and right out of Bonds, causing home loan rates to rise.
Also hurting Bonds was inflation chatter during speeches made by several Federal Reserve Presidents, who voiced concerns of inflation possibilities. Add record high oil prices and a seventeen-year high on food prices. Because inflation erodes the value of the fixed return provided by a Bond, the scent of inflation in the air always causes Bond prices to decline, and as a result, home loan rates will rise.
Even though the market is flexing, it is still a good time to take advantage of historically lower loan rates before rising inflation continues to push rates higher. Buyers now have much more negotiation power in the market. So now may be a good window of opportunity for you.
If you, or a friend, family member, neighbor or coworker needs advice on buying property before the next changes price you out of the market, please feel free to get in touch.
Keith
310-391-0821
One silver lining...some of the abuse that Bonds took was at the hands of somewhat positive economic news. Remember that positive or strong economic news tends to benefit Stocks, which in turn can pull money out of Bonds - which causes Bond prices to worsen and home loan rates to rise. So when news hit of a far better than forecast Retail Sales Report and much better than expected earnings reports from giants like Google, the financial markets responded by flowing money over into Stocks, and right out of Bonds, causing home loan rates to rise.
Also hurting Bonds was inflation chatter during speeches made by several Federal Reserve Presidents, who voiced concerns of inflation possibilities. Add record high oil prices and a seventeen-year high on food prices. Because inflation erodes the value of the fixed return provided by a Bond, the scent of inflation in the air always causes Bond prices to decline, and as a result, home loan rates will rise.
Even though the market is flexing, it is still a good time to take advantage of historically lower loan rates before rising inflation continues to push rates higher. Buyers now have much more negotiation power in the market. So now may be a good window of opportunity for you.
If you, or a friend, family member, neighbor or coworker needs advice on buying property before the next changes price you out of the market, please feel free to get in touch.
Keith
310-391-0821
Tuesday, April 15, 2008
TAX TIME IS HERE AGAIN... tips
"I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:
Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.
Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.
Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.
Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.
Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.
Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
- Check IRS.gov
Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.
Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.
Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.
Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.
Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.
Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
- Check IRS.gov
Wednesday, March 26, 2008
Hot news re Jets at Santa Monica Airport
SM CITY COUNCIL UNANIMOUSLY PASSES ORDINANCE BANNING LARGER, FASTER C&D AIRCRAFT
Following a study session that lasted almost four hours, and included public comments from a packed council chamber of Santa Monica and Los Angeles residents, including LA Councilman Bill Rosendahl, Santa Monica City Council unanimously passed the second reading of their ordinance that will take effect in 30 days, according to SM Mayor pro-tem Richard Bloom.
Follow link to learn more...
Concerned Residents Against Airport Pollution
Website: jetairpollution.com
Following a study session that lasted almost four hours, and included public comments from a packed council chamber of Santa Monica and Los Angeles residents, including LA Councilman Bill Rosendahl, Santa Monica City Council unanimously passed the second reading of their ordinance that will take effect in 30 days, according to SM Mayor pro-tem Richard Bloom.
Follow link to learn more...
Concerned Residents Against Airport Pollution
Website: jetairpollution.com
Monday, March 24, 2008
News from Wall Street is Wild this past week
The New York stock exchange has too high an opinion of it's self. Your stock broker will say to diversify. But he will mean to diversify in different stocks. That is not really diversification. You also need Real Estate. I believe that Income Producing Real Estate is still stronger than any equity paper on any stock exchange.
Just work out your Net Worth. Then look at the % in stocks & bonds. And the % in real estate. Next take your home equity out of the picture. How much of your wealth (equity) is in Income Producing property? If it is not a high enough % then let me know what you want to do about that.
The Hot News...
Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the last week. In the end fixed home loan rates ended up improved by about .25% for the week
The big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.
So income property loans may get better too.
IMHO Keith L.
Just work out your Net Worth. Then look at the % in stocks & bonds. And the % in real estate. Next take your home equity out of the picture. How much of your wealth (equity) is in Income Producing property? If it is not a high enough % then let me know what you want to do about that.
The Hot News...
Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the last week. In the end fixed home loan rates ended up improved by about .25% for the week
The big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.
So income property loans may get better too.
IMHO Keith L.
Tuesday, March 04, 2008
ACTION in Santa Monica
FYI If you are a property owner in Santa Monica you have a friend in this group.
For many years they have been at the forefront of the effort to protect property owners in Santa Monica from a overzealous city regulatory pogrom and heavy handed enforcement of the rules on the books.
To check their public web site go to
www.ACTION-WAM.com
They have regular meetings. I attended the one last night (Monday 3-3-08)
and listened to some very interesting speakers.
One reviewed for us the political efforts that are aligned to fix the problems of cities taking private property using eminent domain. He was from the Howard Jarvis Taxpayers Association and passed out some of their newsletters... "Taxing Times" The hot topic is the differences between two measures that will be on the ballot.
- Prop 98 - good
- Prop 99 - bad
If we want to truly protect property rights and owners from the cities and developers We need to vote Yes on Prop 98. If 99 passes it would keep the same low level of protections and even remove the extra protections of Prop 98 if it gets more votes.
Prop 99 was put on the ballot as a spoiler.
More information can be found on www.hjta.org
or on www.yesonpropertyrights.com
There are good things worth fighting for. Property rights is one.
I welcome your feedback.
Keith Lambert
www.REList.net
For many years they have been at the forefront of the effort to protect property owners in Santa Monica from a overzealous city regulatory pogrom and heavy handed enforcement of the rules on the books.
To check their public web site go to
www.ACTION-WAM.com
They have regular meetings. I attended the one last night (Monday 3-3-08)
and listened to some very interesting speakers.
One reviewed for us the political efforts that are aligned to fix the problems of cities taking private property using eminent domain. He was from the Howard Jarvis Taxpayers Association and passed out some of their newsletters... "Taxing Times" The hot topic is the differences between two measures that will be on the ballot.
- Prop 98 - good
- Prop 99 - bad
If we want to truly protect property rights and owners from the cities and developers We need to vote Yes on Prop 98. If 99 passes it would keep the same low level of protections and even remove the extra protections of Prop 98 if it gets more votes.
Prop 99 was put on the ballot as a spoiler.
More information can be found on www.hjta.org
or on www.yesonpropertyrights.com
There are good things worth fighting for. Property rights is one.
I welcome your feedback.
Keith Lambert
www.REList.net
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