Real Estate Investing and Housing Trends

For the seventh straight month, the National Association of Realtors lowered its forecast earlier this week for 2007 existing home sales, expecting a drop of 8.6 percent from last year.

The association now predicts U.S. existing homes sales to drop to 5.9 million in 2007, down from 6.5 million last year.  The forecast was below last month's prediction of a 6.8 percent drop.

This year's sales will also be lowest they have been since 2002, when sales were 5.6 million.

Downward Revisions Becoming the Norm?

As the housing bubble burst worsens and the subprime mortgage collapse spreads, it seems gut-wrenching revisions are going to be more frequent. Here are just a few case-in-point:

• U.S. Jobs Data Report - Last Friday's Labor Department report said employers cut 4,000 jobs in August versus economist's forecast for a gain of 110,000. What happened here?  August's report brought an end to four years of consecutive job growth.  

The next disturbing number released was the revision of the job market figures in June and July revealing 81,000 fewer jobs were created than was initally estimated.

• Countrywide Home Loans job cuts - Countrywide first reported it would cut 500 jobs but has revised that number up to 12,000 employees, or about 20 percent, by December.

• Value of the U.S. dollar - Simply put, "It's Crashing."  The U.S. dollar is crashing against the euro, the pound, the Swiss franc and the yen.  According to a recent issue of Martin Weiss' Money and Markets, just at the first part of September, one U.S. dollar could have bought 115 yen; the next day, it could only buy 113.  

You may think that's a small change, but in reality, in just 24 hours, the dollar fell more than it would historically fall in 24 weeks!  On September 12, the U.S. Dollar Index plunged to 79.36 - less than 1.2 points of its all-time low of 78.19.

Savvy real estate investing an important hedge

Commercial property investment is an excellent choice, either for investment or to live in. You can buy with as little as 10% down, even 3% for some property types.  You'll enjoy monthly cash-flow along with property appreciation.  I'd be happy to help you get your commercial loan to make your purchase.  Click here for details.

If you're one of the recently unemployed or foreclosure victims, why not find a money partner.  Your money partner puts up the down payment money and qualifies for the loan.  You put up your time, energy and know-how. You find the property, negotiate the deal and oversee the management. (If you don't "know how," educate yourself by getting one of the guides located in the Real Estate Investing Guide Section)   

You arrange with your money partner to live in one of the units so you have a place to live, either for a reasonable rent or for free as part of your partnership agreement.  Hold the property together for a period of time to enjoy some cash flow and appreciation.  Sell the property and take your share of the profits to buy your next property on your own. 

If you've got some bad credit items on your credit report from being unemployed or mortgage lates or a foreclosure, you have some work to do to get your credit report looking good to get a loan for your next investment property you'll be purchasing on your own. So during the period of time your owning the property with your money partner, work on removing derogatory items on your credit report with the help of my recommended credit repair resources.  

Target Discounted Property - pre-foreclosures, short sales, fixer-uppers.  Buy below current market values - which is relative in a declining market so be cautious.

Target Bargainville Real Estate Markets - Put your money in Bargainvilles like the ones I mention in my posts.

Sources:
http://www.domain-b.com/finance/banks/2007/20070914_countrywide%20.html
http://www.iht.com/articles/2007/09/07/business/webecon.php
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