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Monday, October 18, 2010
My Best Apartment in Santa Monica for a Discriminating Beach Lover!
Monday, September 20, 2010
Santa Monica's Smokers must retreat to indoors
They Live in "la-la land" in Santa Monica City Hall
Santa Monica's Smokers must retreat to indoors because of new ordinance
New Laws are in Affect.. see www.SMDP.com - SM Soking_ban_takes_effect_today
So all of Santa Monica's Anti Smoker residents can now sue each smoker for fouling the air. And all property owners and managers have to take on an extra burden to publish the information to the tenants.
OK then the smokers will get themselves declared a protected class as they are "Disabled" and must give in to their addiction. Since they can not stop themselves and therefor not liable to the other hostile tenant. Then the rental property owner who was providing a needed service (housing) is now the new victim as they both sue the housing provider. One for protection as a Disabled renter. One for maintaining unsafe housing near a smoker.
I see dreaded litigation ahead. Santa Monica is leading ahead of the curve and making trouble for many. Are you OK with the city outlawing everything?
Smokers are prosecuted by Anti Smokers. What is next? Surly it is not an Anti Pot Smokers of Santa Monica group doing this. Now I have to notice tenants of their right to sue each other over smoking on balconies.
Personally I do not care what they smoke. The real results that affect me is that this rule forces all smokers inside, the only space left. I just have to scrape the tar and nicotine goo off of the walls and ceilings before we clean and paint between tenants. Uggh Ugly.
IMHO We housing providers can handle this. But it can get out of hand in the future.
Working to protect your RE Assets
Keith Lambert
MEANING: noun,
1. A place or a state of being out of touch with reality.
2. A place known for frivolous activities.
ETYMOLOGY:
Finally, a fictional land that is named after a real place. The term la-la land is coined from the initials of the city of Los Angeles, home of Hollywood, alluding to the fictitious nature of the movies, sets, etc.
Santa Monica's Smokers must retreat to indoors because of new ordinance
New Laws are in Affect.. see www.SMDP.com - SM Soking_ban_takes_effect_today
So all of Santa Monica's Anti Smoker residents can now sue each smoker for fouling the air. And all property owners and managers have to take on an extra burden to publish the information to the tenants.
OK then the smokers will get themselves declared a protected class as they are "Disabled" and must give in to their addiction. Since they can not stop themselves and therefor not liable to the other hostile tenant. Then the rental property owner who was providing a needed service (housing) is now the new victim as they both sue the housing provider. One for protection as a Disabled renter. One for maintaining unsafe housing near a smoker.
I see dreaded litigation ahead. Santa Monica is leading ahead of the curve and making trouble for many. Are you OK with the city outlawing everything?
Smokers are prosecuted by Anti Smokers. What is next? Surly it is not an Anti Pot Smokers of Santa Monica group doing this. Now I have to notice tenants of their right to sue each other over smoking on balconies.
Personally I do not care what they smoke. The real results that affect me is that this rule forces all smokers inside, the only space left. I just have to scrape the tar and nicotine goo off of the walls and ceilings before we clean and paint between tenants. Uggh Ugly.
IMHO We housing providers can handle this. But it can get out of hand in the future.
Working to protect your RE Assets
Keith Lambert
Monday, June 28, 2010
2 bedroom apartment on the market
It happens rarely but it happens... We have a very cool 2 bedroom apartment for rent.
It is a good location and has 2 parking spaces. Wow.
Market rents for this area used to push up near $3,000 per month. Now at 2,500 to $2650 ish. This one was upgraded with better kitchen and has 2 parking so is worth $2750.
What will it rent for is to be seen. Make an offer quick if interested.
KBL 310-391-0821
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It is a good location and has 2 parking spaces. Wow.
Market rents for this area used to push up near $3,000 per month. Now at 2,500 to $2650 ish. This one was upgraded with better kitchen and has 2 parking so is worth $2750.
What will it rent for is to be seen. Make an offer quick if interested.
KBL 310-391-0821
Thursday, May 13, 2010
Poll in LA Business Journal on LA Rent Freeze
Please Vote on the LABusinessJournal.com Poll.
The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.
The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to study it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.
Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.
Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"
www.labusinessjournal.com/
The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.
The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to study it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.
Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.
Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"
www.labusinessjournal.com/
Rent Freeze issue for LA City Council - 2010
Dear Councilman Rosendahl,
Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.
The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)
The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!
Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.
The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.
Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.
It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.
I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.
Thanks for considering this point on the topic.
Sincerely Keith Lambert
310-391-0821
Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.
The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)
The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!
Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.
The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.
Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.
It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.
I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.
Thanks for considering this point on the topic.
Sincerely Keith Lambert
310-391-0821
Thursday, April 22, 2010
Market - great for buyers
As I review the apartment buildings on the market I see a lot of better and better returns available.
If you, like me, prefer the positive cash flow of an apartment building to the other types of passive income out there searching for your investment capital then please give me a call. I'll happily share the ones that I like in the West Los Angeles market.
The local area is still holding strong in the rental market. Sure with the market downturn the price of an apartment may be a little more flexible. But not off my much. Apples to Apples rents on the few units that do turn over are maybe down 12 to 18 %. But that does not mean you can not make the bills and have a good positive cash flow.
With the right amount of down payment you can win an excellent return and cash flow.
Let me know what you like.
Keith Lambert
310-391-0821
If you, like me, prefer the positive cash flow of an apartment building to the other types of passive income out there searching for your investment capital then please give me a call. I'll happily share the ones that I like in the West Los Angeles market.
The local area is still holding strong in the rental market. Sure with the market downturn the price of an apartment may be a little more flexible. But not off my much. Apples to Apples rents on the few units that do turn over are maybe down 12 to 18 %. But that does not mean you can not make the bills and have a good positive cash flow.
With the right amount of down payment you can win an excellent return and cash flow.
Let me know what you like.
Keith Lambert
310-391-0821
Saturday, March 27, 2010
Single Family Home - Open on Sunday 12-3 pm
Sunday from 12 noon to 3 pm. Come preview this nice family home.
House and Guest House in the Culver City Zip on the Mar Vista boarder.
Great upgrades to the home make it a very good deal.
Keith
310-398-3272
House and Guest House in the Culver City Zip on the Mar Vista boarder.
Great upgrades to the home make it a very good deal.
Keith
310-398-3272
Monday, March 22, 2010
Passage of the Healthcare Bill will have impacts on the markets.
"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW. " Og Mandino. And wondering what kind of action will happen on Healthcare reform was certainly on everyone's mind last week. But what does this mean for the markets and home loan rates?
Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.
But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.
Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.
The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a 360,000 person increase from the prior week. It easily could have been far worse. The labor market continues to be weak. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
If the employment and local real estate market continue to improve, as they have in some ways, we will see some improvement in the feel for the economy. The ever elusive "consumer confidence" level that we hear about from time to time.
If you or someone you know would like to learn more about buying a home, have them give me a call.
Keith Lambert
310-398-3272
Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.
But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.
Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.
The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a 360,000 person increase from the prior week. It easily could have been far worse. The labor market continues to be weak. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
If the employment and local real estate market continue to improve, as they have in some ways, we will see some improvement in the feel for the economy. The ever elusive "consumer confidence" level that we hear about from time to time.
If you or someone you know would like to learn more about buying a home, have them give me a call.
Keith Lambert
310-398-3272
Friday, March 19, 2010
3 headlines that together say something good.
3 LA Times headlines all on page B2 send a good signal. – “Home Prices Rise 11.2% in the state” “First Time Jobless Claims Decline slightly; Inflation Remains in Check” and “30 year Fixed Rates Edge Up” – Now that looks like the light at the end of the tunnel I was hoping to see. This is the combination that signals a good move in the real estate marketplace.
If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.
IMHO
Keith Lambert
www.REList.net
If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.
IMHO
Keith Lambert
www.REList.net
Tuesday, February 23, 2010
Westside Real Estate in Review - 2009 RE info on Single Family Homes
Westside Real Estate in Review
The above review is useful. I agree with the last paragraph. But maybe it would be more useful if it also listed the lowest sale! LOL
Keith
The real estate market from late 2008 through the fall of 2009 was characterized by uncertainty and falling real estate prices over those many months. Below you will find information accumulated from the Multiple Listing Service provides an overview of the sales activity of 2009.
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Venice - 120 houses sold with an average days on market (DOM) of 76 days. The average price per square foot was $656/ft down from $784/ft from the prior year. The highest sale was 1311 Abbot Kinney Blvd which sold for $5,600,000.
Palms/Mar Vista - 235 houses sold with an average DOM of 55 days. The average price per square foot was $481/ft down from $531/ft the prior year. The highest sale was 4056 Marcasel Avenue which sold for $2,500,000.
Santa Monica - 188 houses sold with and average DOM of 72 days. The average price per square foot was $744/ft down from $835/ft the prior year. The highest sale was 703 Palisades Beach Road which sold for $6,500,000.
Brentwood - 217 houses sold with an average DOM of 94 days. The average price per square foot was $767/ft down from $969/ft the year before. The highest sale was 25 Oakmont Drive which sold for $15,150,000.
Pacific Palisades - 197 houses sold with an average DOM of 96 days. The average price per square foot was $678/ft down from $835/ft the year before. The highest sale was 1730 San Remo Drive which sold for $14,500,000.
Marina Del Rey - 25 houses sold with an average DOM of 121 days. The average price per square foot was $460/ft down from $542/ft the year before. The highest sale was 143 Voyage Mall which sold for $2,275,000.
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Bank real estate lending policies have become very restrictive in 2009, especially when borrowing for homes selling for more that $1 million dollars. Loan applications are getting much more scrutiny. Inventories of homes grew from January into the summer months, including higher end properties putting downward pressure on prices.
Buyers are being extremely selective and in many cases were looking for "a deal" and those deals were out there. Westside properties were not immune to the downturn, though when compared to the San Fernando Valley and other neighboring areas real estate prices did not fall nearly as far.
Now, with interest rates at or near historic lows, we are seeing prices for Westside real estate firming. We have been witnessing a large reduction of available inventory on the Westside which, in some cases is pushing pricing upward especially for homes in good neighborhoods and priced under one million dollars.
The above review is useful. I agree with the last paragraph. But maybe it would be more useful if it also listed the lowest sale! LOL
Keith
Tuesday, December 15, 2009
Happy Holidays
Here in our area we have some cool holiday traditions. There is a Boat Parade out in the Marina Del Rey harbor that is fun. But at night hard to get a lot of good photos.
In Venice on the canals there is a simular parade but on the smaller scale.
Here are some photos to share. ( Thanks to YoVenice.com )
In Venice on the canals there is a simular parade but on the smaller scale.
Here are some photos to share. ( Thanks to YoVenice.com )
Monday, December 14, 2009
The Recession this far...
Last week brought some market action when Fed Chairman Ben Bernanke discussed the recession, commenting that our economic recovery still faces "formidable headwinds." As you can see in the chart below, the current recession we have been in has been the longest in nearly half a century.
Because negative economic comments or news causes money to flow out of Stocks and into Bonds, Bernanke's words helped Bonds and home loan rates to improve early last week...but these improvements were short lived.
Bond prices and home loan rates responded poorly to the Treasury auctions of last week, as the Treasury instruments being auctioned off are in direct competition with Mortgage Backed Securities...and the continual record amounts of supply hitting the market requires record amounts of buying to take place as well. And remember - the Federal Reserve is winding down their Mortgage Backed Security purchasing program, so as they stretch out and ration their remaining purchases through the first quarter of next year, the reduced amount of their buying just adds to the problem.
And as with any item, when there is lots of supply and diminishing demand - Economics 101 tells us that the price of that item will subsequently go down. So as Bond prices go down, home loan rates go up - and last week saw home loan rates increase by at least .125% across the board.
Also adding to selling pressure on Bonds in the latter part of last week were several bits of good economic news. First, the Retail Sales Report for November was better than expected, marking the third monthly increase over the past four months. It appears that lower prices and good deals are helping to spur some buying activity, though it remains to be seen how this will impact retailers' bottom lines. Consumer Sentiment was also reported quite a bit better than expected.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Coming this week... Wednesday will also bring a read on the housing market with the Housing Starts and Building Permits Report, as well as the Interest Rate Decision and Policy Statement from the Fed, following the end of their regularly scheduled Federal Open Market Committee meeting. A change in rates isn't expected - but any comments about inflation in the Policy Statement could rattle Bonds and home loan rates.
Fingers crossed.
Keith L.
Because negative economic comments or news causes money to flow out of Stocks and into Bonds, Bernanke's words helped Bonds and home loan rates to improve early last week...but these improvements were short lived.
Bond prices and home loan rates responded poorly to the Treasury auctions of last week, as the Treasury instruments being auctioned off are in direct competition with Mortgage Backed Securities...and the continual record amounts of supply hitting the market requires record amounts of buying to take place as well. And remember - the Federal Reserve is winding down their Mortgage Backed Security purchasing program, so as they stretch out and ration their remaining purchases through the first quarter of next year, the reduced amount of their buying just adds to the problem.
And as with any item, when there is lots of supply and diminishing demand - Economics 101 tells us that the price of that item will subsequently go down. So as Bond prices go down, home loan rates go up - and last week saw home loan rates increase by at least .125% across the board.
Also adding to selling pressure on Bonds in the latter part of last week were several bits of good economic news. First, the Retail Sales Report for November was better than expected, marking the third monthly increase over the past four months. It appears that lower prices and good deals are helping to spur some buying activity, though it remains to be seen how this will impact retailers' bottom lines. Consumer Sentiment was also reported quite a bit better than expected.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Coming this week... Wednesday will also bring a read on the housing market with the Housing Starts and Building Permits Report, as well as the Interest Rate Decision and Policy Statement from the Fed, following the end of their regularly scheduled Federal Open Market Committee meeting. A change in rates isn't expected - but any comments about inflation in the Policy Statement could rattle Bonds and home loan rates.
Fingers crossed.
Keith L.
Friday, November 27, 2009
There is a differance: Income Property -vs- Single Family House
While it is nice to have growth in value of your home... That does not build long term wealth for you and provide for your financial security if you have just one home for your family to live in. What happens if you need to sell it? You need separate income property. And a savings account at a bank. And a bit of investment money in something like an investment in a growing business or with a stock broker (lettering them pick the business). And maybe a whole life policy if you do not just want a social security check to retire on.
This article is on point... Not all Real Estate is your House!
and it concludes with
Dah! Real Estate for a Quick Flip has always been a very risky thing. Long Term Investment in income producing real estate is for the person that is looking for long term security.
And it irks me that when most think of Real Estate they only think of a Single Family Home. Or maybe a condo or townhouse. Well... Wake those folks up to the ownership of rental property as an asset class. Maybe start with a small Triplex or a 5 unit building. Then trade up. Sure it takes work. And patience.
As long as the business leaders in US Corporations look to just make enough to get a stock bonus to pay off we as a country will continue to fail. As long as real estate buyers look to buying a single family home for a quick profit we will have a messed up financial situation.
I believe in Long Term Investment in income producing real estate. If you do as well then please call me and lets get you in a good property while this is a buyers market.
Keith
310-391-0821
This article is on point... Not all Real Estate is your House!
Nov. 22, 2009
View of home as investment needs to change, expert says
BY KATHLEEN M. HOWLEY BLOOMBERG NEWS
Kajal and Vishal Dharod paid $559,000 in 2006 for a new four-bedroom house built in Rancho Cucamonga, Calif. Today, it's worth about $360,000.
"We don't know how we can come back from a loss like that," said Kajal Dharod, 29, a first-time homeowner with a $4,200-a-month mortgage. "Buying the house was a mistake."
American homeownership, once considered a path to wealth, is now leading to disillusionment.
"We always talk about homeownership as being the American dream, but during the last decade, people forgot it's shelter and started thinking of it as a fast way to make or lose money," said Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies in Cambridge, Mass. "The quicker we move back to seeing real estate as a place to live, a place to put down roots, the quicker the housing recovery will strengthen."
Home-price growth in the next decade probably will average about 3.5% a year, based on …
and it concludes with
"After every major bust, there is a rethinking of that asset class," Carson said. "I think people will change their views about real estate and begin to look at it as a long-term investment that provides shelter, rather than a way to make a quick buck."
Dah! Real Estate for a Quick Flip has always been a very risky thing. Long Term Investment in income producing real estate is for the person that is looking for long term security.
And it irks me that when most think of Real Estate they only think of a Single Family Home. Or maybe a condo or townhouse. Well... Wake those folks up to the ownership of rental property as an asset class. Maybe start with a small Triplex or a 5 unit building. Then trade up. Sure it takes work. And patience.
As long as the business leaders in US Corporations look to just make enough to get a stock bonus to pay off we as a country will continue to fail. As long as real estate buyers look to buying a single family home for a quick profit we will have a messed up financial situation.
I believe in Long Term Investment in income producing real estate. If you do as well then please call me and lets get you in a good property while this is a buyers market.
Keith
310-391-0821
Thursday, November 26, 2009
Thanksgiving thoughts - Buyers be Thankful!
Something to be Thankful for. Balance.
Balance is a good thing. Today in the Los Angeles Times - Page B2 -
"Fannie Mae to tighten mortgage lending rules" Minimum 620 credit score and no more than 45% income to debt.
Followed by this story "Interest rates drop, matching record low" where the review how rates are now matching a record low of 24 years at 5.06%. But very few are applying.
If the system was not cranked wide open by too loose money we would not have had the blowout. Now the scarcity of banks willing to lend and the prevalence of regulators to be arbitrary and capricious leaves the lenders scared to actually extend credit.
So all you borrowers be prepared. Expect bigger down payments to be required. Prepare for slow responses. Prepare for delays. Be aware that the lenders are chicken for good reason. Sure it may be staffing reductions. And the hoops seem unusually silly.
But the reality is... If you do persevere you can take away some really terrific loan rates once you get approved!
So be Thankful. If you have the ability to buy right now you are likely to get better prices and the best rates for the money borrowed. Now that is leverage that will pay off for buyers with vision for long term profits.
Let me know if you need an introduction to a loan broker. I have two good guys that I can introduce you to.
Keith
310-391-0821
Monday, November 09, 2009
Time and Date. Back to 1983 Unemployment numbers
"TIME IS MORE VALUABLE THAN MONEY. YOU CAN GET MORE MONEY, BUT YOU CANNOT GET MORE TIME." Jim Rohn. And while this is certainly true, home buyers and folks receiving unemployment benefits both got the word that a bit more money and time is coming their way.
Just on Friday, President Obama signed into law a bill that extends unemployment benefits and the First Time Home Buyers tax credit, which is also being expanded to include benefits for homebuyers who aren't on the first time around buying a home. If purchasing a home is in the cards for you or anyone you know, you can get all the details of the homebuyer's tax credit in this week's Mortgage Market Guide View article below. But first, here are a few additional highlights from last week...including important job market news.
Last week's official Jobs Report showed that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were widely expected. In addition the Unemployment Rate rose to 10.2%, quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983.
However if I think back to that time we had the growth of the personal computer and a few other technological changes to the world we lived in. Back then in 1983 a Cell phone was plugged into your car or as big as a lunch box. It was a rare business person who owned a personal computer of any type.
We may not be able to get back time but we are back to a time of High Unemployment. What will be the driving force of the work force of our next faze?
Movies are digital and FX is all in a computer. Technology is building remote controlled planes to drop remote controlled bombs. Pilots are so bored that they overshoot their destination by an Hour.
Banks and their regulators are being duplicitous and difficult to fathom. The Government is giving them money fast. Telling them that this money is so you can loan. Then the other department of the government is looking over their books with a fine tooth comb to make sure that they only make loans of the highest caliber that will surely not default.
So how do we Real Estate Agents sell anything if the loans are not going to be approved and funded?
What we need now is strong sources of Employment. Strong borrowers. And Strong Banks willing to make the loans. This we can all see as the three legs of the support for our marketplaces.
It is the Holiday shopping season next. Here is to hoping the numbers are good for us all.
Keith
Just on Friday, President Obama signed into law a bill that extends unemployment benefits and the First Time Home Buyers tax credit, which is also being expanded to include benefits for homebuyers who aren't on the first time around buying a home. If purchasing a home is in the cards for you or anyone you know, you can get all the details of the homebuyer's tax credit in this week's Mortgage Market Guide View article below. But first, here are a few additional highlights from last week...including important job market news.
Last week's official Jobs Report showed that there were 190,000 jobs lost in October, higher than the 175,000 job losses that were widely expected. In addition the Unemployment Rate rose to 10.2%, quite a bit higher than the 9.9% expected, and the highest Unemployment level since 1983.
However if I think back to that time we had the growth of the personal computer and a few other technological changes to the world we lived in. Back then in 1983 a Cell phone was plugged into your car or as big as a lunch box. It was a rare business person who owned a personal computer of any type.
We may not be able to get back time but we are back to a time of High Unemployment. What will be the driving force of the work force of our next faze?
Movies are digital and FX is all in a computer. Technology is building remote controlled planes to drop remote controlled bombs. Pilots are so bored that they overshoot their destination by an Hour.
Banks and their regulators are being duplicitous and difficult to fathom. The Government is giving them money fast. Telling them that this money is so you can loan. Then the other department of the government is looking over their books with a fine tooth comb to make sure that they only make loans of the highest caliber that will surely not default.
So how do we Real Estate Agents sell anything if the loans are not going to be approved and funded?
What we need now is strong sources of Employment. Strong borrowers. And Strong Banks willing to make the loans. This we can all see as the three legs of the support for our marketplaces.
It is the Holiday shopping season next. Here is to hoping the numbers are good for us all.
Keith
Monday, November 02, 2009
Looks like it is getting healthier. Do you agree with the news?
Last week the Commerce Department reported the Gross Domestic Product (GDP) for the 3rd Quarter. As you can see from the chart, GDP rose by 3.5% for the first gain in a year and the strongest reading in two years.
While most media outlets were giddy about the news and started the hype that the recession is behind us, it's important to remember that there's more to the economic data than just the headlines.
The temporary "Cash for Clunkers" program has now expired, but was a big part of last quarter's GDP gain. If we remove it from the total, the reading would have been a more modest 1.9%. But there is even more to the rise in the latest GDP number that is just temporary...
Also bolstering the economy has been the $8,000 first-time homebuyer tax credit - which is set to expire at the end of this month. Many home buyers have been taking advantage of this program - and wisely so.
New Home Sales were reported last week, showing a 7.5-month supply of inventory. While that number is slightly worse than last month's 7.3 reading, it's still a big improvement from where we were in January. Back in January, inventory levels reached a high of 12.4-month supply! The improvement in housing inventories has been due in large part to the $8,000 First Time Homebuyer Tax Credit, which is set to expire on November 30.
There is a real possibility of an extension of this program through a proposed Bill, but it is not yet a certainty. The extension Bill still must be reconciled between the House and Senate, and then voted on for final approval. Under the current extension proposal, sales with signed purchase agreements by April 30th that close before June 30th, 2010 would qualify for the credit.
Another bit of news was the UCLA Anderson Forecast: "Recession likely ended this quarter"
In that report there is this line...
"Credit-impaired lower-income consumers can't spend the way they used to, and wealth-impaired affluent consumers won't,"
The Anderson Report further says that this Qtr marks the end of the recession.
Well now we all feel better knowing that this is the low point. Right? There are signs of activity. Some very good things. Maybe this is the low point and we are bout to begin the long slog back to normalcy.
Not the wild growth of the recent past but healthy productivity! We all will welcome that.
IMHO Keith
Tuesday, October 27, 2009
Shadow .... market of homes
I know I have suspected that there are more foreclosures to come.
Really good write up on this topic in the Wall Street Journal.
It has been keeping a few buyers on the sidelines looking for a deeper bottoming out to the real estate in the local market. Reality Check. Buy if you find the one that works for you long term. Especially if you plan on living in it.
Now in the Income Property side. Revenue dependability is what we have most here in the West Los Angeles area. That reduces risk.
If you want money to be available for a dependable retirement cash flow... We should talk. There are some good options in the marketplace.
Keith L.
310-391-0821
Really good write up on this topic in the Wall Street Journal.
"So where’s that long-awaited deluge of bank-owned homes that is supposed to flood the U.S. housing market? This “shadow” inventory has..."
It has been keeping a few buyers on the sidelines looking for a deeper bottoming out to the real estate in the local market. Reality Check. Buy if you find the one that works for you long term. Especially if you plan on living in it.
Now in the Income Property side. Revenue dependability is what we have most here in the West Los Angeles area. That reduces risk.
If you want money to be available for a dependable retirement cash flow... We should talk. There are some good options in the marketplace.
Keith L.
310-391-0821
Monday, October 26, 2009
Details... financing is the "Devel in the Details"
THE DEVIL IS IN THE DETAILS... Or so the famous saying goes. And when it comes to really understanding the various reports and events unfolding in the economy, it's important to take a look at the details - not just the headlines. Here's what we know...
On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month's number could climb higher again, as oil and natural gas have both been on a tear higher lately.
In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren't even aware of it...so please let me know if you or someone you know needs more information - the clock is ticking!
Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April.
In other news, 3rd quarter earnings season continues, where companies report their status as of the end of September. While many companies are beating expectations, it's important to realize that many of those companies achieved better earnings by cost cutting and layoffs, not from increased sales. This is a big disconnect between Wall Street and "Main Street". Stocks are rocketing higher based on these "positive" reports, but the cost cutting and job cutting measures can only go so far...you can't simultaneously grow the ranks of unemployment - and then grow your business, hoping for increased sales to those same people who are without jobs.
Last week's Jobless Claims numbers seem to confirm this as Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people's unemployment benefits expiring, without them having been able to find jobs.
Also worth noting is the news that ratings agency Moody's lead analyst, Steven Hess, said that the US needs to cut its deficit or it could lose its "AAA" rating in the next 3 to 4 years, which we have maintained since 1917! Think of all we've been through - two World Wars, the Depression, three Wall Street collapses and major terrorist attacks... yet our credit quality has maintained that AAA rating, allowing us to issue debt at the most favorable rates. Hess went on to say that if the US doesn't "get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy." And just like on a mortgage when the credit rating gets reduced, interest rates move higher. This will definitely be something to keep an eye on in the months ahead.
After all the week's action, Bonds and home loan rates ended the week slightly worse than where they began. How much longer will we have good Interest Rates is a good question.
If you have a Crystal Ball and see the next moves on the market... Hit comment and tell us where you think it is going.
Keith L.
310-398-3272
On the inflation front, the Producer Price Index, which measures wholesale inflation, unexpectedly fell due to a drop in energy prices. While that seems like good news on the surface, keep in mind that next month's number could climb higher again, as oil and natural gas have both been on a tear higher lately.
In housing news, Housing Starts and Building Permits both came in a bit below expectations, but this may be a sign that builders are exercising some caution - particularly in the face of the $8,000 tax credit for first time homebuyers that is presently set to expire on November 30th. Existing Home Sales came in better than expected - and a whopping 45% of those homes were sold to first time homebuyers - rushing to move in on that credit. Recent studies have shown that many who qualify for this tax credit aren't even aware of it...so please let me know if you or someone you know needs more information - the clock is ticking!
Additionally, the level of existing homes inventory shrunk to a 7.8 month supply, down from a recent high of 10.1 months in April.
In other news, 3rd quarter earnings season continues, where companies report their status as of the end of September. While many companies are beating expectations, it's important to realize that many of those companies achieved better earnings by cost cutting and layoffs, not from increased sales. This is a big disconnect between Wall Street and "Main Street". Stocks are rocketing higher based on these "positive" reports, but the cost cutting and job cutting measures can only go so far...you can't simultaneously grow the ranks of unemployment - and then grow your business, hoping for increased sales to those same people who are without jobs.
Last week's Jobless Claims numbers seem to confirm this as Initial Jobless Claims rose more than expected. In addition, the number of individuals continuing to receive unemployment benefits fell to the lowest level since March, but this is likely the result of people's unemployment benefits expiring, without them having been able to find jobs.
Also worth noting is the news that ratings agency Moody's lead analyst, Steven Hess, said that the US needs to cut its deficit or it could lose its "AAA" rating in the next 3 to 4 years, which we have maintained since 1917! Think of all we've been through - two World Wars, the Depression, three Wall Street collapses and major terrorist attacks... yet our credit quality has maintained that AAA rating, allowing us to issue debt at the most favorable rates. Hess went on to say that if the US doesn't "get the deficit down in the next 3-4 years to a sustainable level, then the rating will be in jeopardy." And just like on a mortgage when the credit rating gets reduced, interest rates move higher. This will definitely be something to keep an eye on in the months ahead.
After all the week's action, Bonds and home loan rates ended the week slightly worse than where they began. How much longer will we have good Interest Rates is a good question.
If you have a Crystal Ball and see the next moves on the market... Hit comment and tell us where you think it is going.
Keith L.
310-398-3272
Thursday, October 22, 2009
"Finding Common Ground" Forum
Dear Friends,
Thank you so much for helping to make yesterday’s Housing Forum a success! We are excited that so many of you took time from your busy Wednesday to join us in the spirit of understanding and cooperation.
Please take a few moments to answer these questions for us so we can learn and improve future programs for the public. Your feedback is VERY important to us!
1. What were your overall impressions of the event?
2. What were your favorite parts? Why?
3. What things would you change or improve? Why?
Thank you again for your time.
Sincerely,
Deborah Freeman, Legal Assistant
Santa Monica City Attorney's Office
Dear Deborah,
Thank you for the event at the Annenberg Community Beach House today. It was a nice venue and a nice idea to have a beginning of dialogue about actual compromise and meeting of those who are most polarized in this city. Some compromising may eventually come of it. There were opportunities for sharing that may lead to more understanding and useful compromises in the future.
I frequently work hard to find common ground with my tenants (customers really) by listening and trying to learn what they really need or are on about. And in return managing their expectations of what I can do for them. Housing providers are not the everything solution to all the ills of the world in which we live. And some in the community feel we are the worst thing and use a term like Landlord with all the old worst connotations that they can attach to it. As if all landlords are a Charles Dickens character.
And therefore the “Landlord” term may make finding common ground hard for those who do not trust that a Housing Provider is a professional businessperson who does have good intentions to live up to the business relationship with the tenant.
In overview… One or two questions that were posed to the panel may be the hot items that you deal with on a regular basis but are not ones that landlords ( I prefer Housing Providers) are able to help solve. In many cases the smoking issue is one that we cannot regulate. And the common complaint about noise is often beyond the pale of our control. The only item in the post seminar discussion panel questions section that seemed on point was the one related to maintenance. And of course as asked – relating to a new owner – it was about giving the owner a chance to effect repairs and communications going back and forth so that the tenants know what to expect and what the new housing provider will be working on first. The opinion of one fellow property manager in attendance was that 3 of the 4 questions posed were absolutely useless to the property owner side of the issue. After fully reviewing your web site I see that those are the items that were most important to the Consumer Affairs division but not necessarily related to "Finding Common Ground" between landlord and tenant.
I hope that in the long term these meetings can work on problems that we (Tenants and Owners/Management) have to deal with and will actually make a difference. The difficulty to be overcome was evidenced by one of your lead speakers. It was said by the City of Santa Monica elected official who spoke, that he did not believe there was room for compromise on this issue. It is not just the Housing Provider side that must be brought to the table with an understanding of what effective and beneficial thing can come of this.
Such Polarization and refusal to deal with issues is very tough for us. My expenses are up. Much of it is due to new city fees and city taxes. Yet there was not an appropriate place in yesterday’s meeting to review that. The Housing Providers are not able to be the solution to all of societal ills. Smoking or bad behaviors between neighbors are just the tip of the iceberg.
I look forward to future meetings like this where there are more insights to each other’s side in the future.
Sincerely,
Keith Lambert
Monday, October 19, 2009
Heat is rising on the financing side
"THE HEAT IS ON." Glenn Frey. While cooler temperatures are beginning to descend on many parts of the country, Bonds and home loan rates are feeling the heat and pressure from several fronts. Here are some details...along with why it's important to act soon to take advantage of current home loan rates, as they may never be seen again.
Last week, the Core Consumer Price Index (CPI) was reported higher than expected, indicating that inflationary forces may already be underway. Remember, inflation erodes the value of the fixed return that a Bond provides - therefore, inflation is harmful to Bonds and home loan rates. Just the hint of inflation can cause home loan rates to worsen, which is what we saw last week.
And here's a very interesting and important note - when looking at these CPI numbers, it is important to understand the effect that the "Cash for Clunkers" program had on this index. The Cash for Clunkers program was very "creatively" accounted for as a reduction in the sales price of automobiles, which had to have a dramatic effect on lowering the CPI that was reported. Imagine how much higher CPI would have been had this "creativity" not been used. As even more inflationary fears creep into the economy, home loan rates will continue to rise.
Also adding pressure to Bonds and home loan rates is the Fed's plan to ration out their remaining purchases of Mortgage Backed Securities. The Fed has purchased around $950B year-to-date out of the $1.25T allotted for the program, which is now set to expire March 31, 2010. This means the Fed will be averaging about $14B a week in purchases, a lot less than $25B or so they had been doing up until recently. And anytime demand for an item slows down...including Mortgage Backed Securities...the price goes down. And in this case, it means that home loan rates will move higher.
The bottom line is that the heat is on...and home loan rates are starting to rise already. While home loan rates are still incredibly low, it is clear this won't last much longer - and we may not see rates at these levels again in our lifetimes.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
If you have the ability to get qualified and a suitable down payment to purchase, you are at the right point in time. The right property to invest in is not that hard for a professional agent to find. Give me a call if you want to discuss your own investment plans.
Keith Lambert
310-391-0821
Last week, the Core Consumer Price Index (CPI) was reported higher than expected, indicating that inflationary forces may already be underway. Remember, inflation erodes the value of the fixed return that a Bond provides - therefore, inflation is harmful to Bonds and home loan rates. Just the hint of inflation can cause home loan rates to worsen, which is what we saw last week.
And here's a very interesting and important note - when looking at these CPI numbers, it is important to understand the effect that the "Cash for Clunkers" program had on this index. The Cash for Clunkers program was very "creatively" accounted for as a reduction in the sales price of automobiles, which had to have a dramatic effect on lowering the CPI that was reported. Imagine how much higher CPI would have been had this "creativity" not been used. As even more inflationary fears creep into the economy, home loan rates will continue to rise.
Also adding pressure to Bonds and home loan rates is the Fed's plan to ration out their remaining purchases of Mortgage Backed Securities. The Fed has purchased around $950B year-to-date out of the $1.25T allotted for the program, which is now set to expire March 31, 2010. This means the Fed will be averaging about $14B a week in purchases, a lot less than $25B or so they had been doing up until recently. And anytime demand for an item slows down...including Mortgage Backed Securities...the price goes down. And in this case, it means that home loan rates will move higher.
The bottom line is that the heat is on...and home loan rates are starting to rise already. While home loan rates are still incredibly low, it is clear this won't last much longer - and we may not see rates at these levels again in our lifetimes.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
If you have the ability to get qualified and a suitable down payment to purchase, you are at the right point in time. The right property to invest in is not that hard for a professional agent to find. Give me a call if you want to discuss your own investment plans.
Keith Lambert
310-391-0821
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