Real Estate Investing

Let’s start with the good news before we get all funky here… housing and manufacturing have started the drive to an economic recovery according to a report released today by Federal Reserve, as reported by MSNBC.com.

The Fed’s latest snapshot of business conditions nationwide found “many sectors” of the economy either stabilized or logged modest improvements over the last six weeks. The pickups, though, often were from “depressed” levels of activity.

Still, the new report adds to evidence that a recovery has started from the worst recession since the 1930s.
An $8,000 credit for first-time homebuyers boosted the housing sector.

There’s been concern among private economists and some lawmakers that recent gains in housing will fizzle out when the credit ends. It is slated to expired Nov. 30, although some in Congress are mulling an extension.

Good news, but this recovery will still take some time to find a full strength economy.  There are too many people who still need work, so it’s great to also see manufacturing in a little bit of a bounce.

Speaking of bounce, you could bounce into a new house through clicking on an advertisement in this what-I-hope-will-be-brilliant online marketing plan.  The home sellers plan to sell ads, and beginning November 2nd people can earn chances to win by click-throughs.  But more about the house being given away,

Our stone, character detached property of approx 1800 sq ft plus secluded small garden and drive was valued at £425,000 prior to the economic downturn which according to recent media reports prices have risen again.

Good luck!

Finally, Lovely Listing is quickly becoming one of my favorite real estate sites because of photos and writing like this…

“Motivated seller!” says the listing. And why? Because they can’t stop imagining what it would feel like to gnaw on the walls with their fillings. *zap zap zap*

Brilliant!  Enjoy your hump day.

In life, you should always associate with people who are better than you, who you want to be like, who will bring you UP to their level rather than drag you down.  It has been my extreme good fortune to find really good acquaintances both in person and online.  Generous people.  Funny. And very very smart.

One of my favorite smart people is Les Jones who wrote a few days ago about how someone he read said, “Some days I really wish I could go back to being completely clueless about the economy. Now I know enough to be scared but not enough to actually know what to do.”  Like Les, I also agree.  However, his insight is far superior than my own because I gaze at life sometimes through the rose-tinted glasses, with a pocketful of sunshine, and unicorns riding rainbows.

He’s more realistic, though:

It is depressing. Worse, I’ve been holding back on how bad I think some parts of the economy are going to get.

For instance, I basically think the U.S. banking system is gone. Insolvent. Bankrupt. As in their liabilities greatly exceed their assets if their assets were fairly priced. It only takes a small write-down in assets to destroy a highly-leveraged bank in a fractional reserve system. Even by conservative estimates most banks are wiped out.

While the $8000 first-time home buyer tax credit seems to have helped somewhat, economic news remains grim.  You can just go to CNN Money and read the headlines to see that a full recovery is still years away.  It eludes us like - apparently - a sunny day in the South in these days of constant rain and gloom.

Holiday Sales: Tough Sledding Ahead

Bailout Cop: Treasury Set Unrealistic Expectations

Unemployment Will Top 10%

Personal Bankruptcies Hits a 4-Year High

The headlines just go on forever with bad news.  I’ll be watching Les Jones closely for good news… though I have to admit his too cute post about his 3-year old wanting to grow up made me smile.  Thank you, Les.

Photo by History of Economics Playground.

My pal Les Jones - always on top of the economy, watches the feds, and has some great pics of his kiddos - did it again.  He linked to a site that I love.  Called Curious? Read, the site offered The Top 10 Things We’re Glad the Recession Killed.

In addition to the $5 cup of coffee, bling, and high gas prices, we also celebrate the end of ridiculous housing costs:

When a fifty-year-old, three-bedroom shack located in a bad neighborhood in Los Angeles is valued at over $1,000,000, something is obviously really friggin’ wrong. And when mortgage prices go up, so does the price to rent those properties.

So now that pretty much all real estate across the country has lost nearly a third of its value over the last two years, some of us can go back to fantasizing about someday actually owning a home.

I tend to agree that prices were out-of-control.  It was always amazing for me to talk to people moving to Tennessee from California because one of our 1200 square foot homes would run about $120,000 to $150,000 - depending on the location.  There, the house would cost ten times that amount which made me shudder and KNOW that I could never afford to live in California.

What else has the recession killed?

• It’s killed a lot of business for builders. We hear every month about the latest one to declare bankruptcy.
• It’s killed a lot of jobs for people.  Even Realtors.  A colleague told me this week that they haven’t made their mortgage payment yet for August.  It’s the 27th.
• It’s ruined the trust people generally feel for government. Oh wait… that happened a while back.  (Just kidding, Mr. Fed. Don’t come after me!)
• It’s VASTLY slowed commercial and retail growth.

The good things the recession has killed?

• Overeating in some cases because people can’t afford to go out, splurge.
• Excess spending … I don’t drive as much, I turn off all the lights when I don’t need them, I drastically limit my shopping.
• I drive more safely.  I can’t afford a speeding ticket!

What’s different where you are?