Investment Opportunities

As a member of CRS (Certified Residential Specialist) I receive their monthly publications. A recent article discussed the fact that many Investors are taking advantage of the great investment properties at hand.

It stated “While some U.S. housing markets have been clouded by slow sales rates and rising inventory levels, OPTIMISTIC INVESTORS seem to see sunny days ahead!” It went on to say that despite the varied market conditions across the country, one thing holds true: the investment market has remained pretty consistent.

They said Investors are a different breed of homebuyer. They have a different mindset. They’re not frightened by a so-called soft market. In fact, many are encouraged by it, sensing an opportunity to become more aggressive. They know how to spot deals, and they adapt well to changing markets.

Savvy Investors know the benefits of the current down market where they can pick up bargains that were priced higher a few years ago. They’ll just HOLD for rental and SELL during the next upswing.

The investor market has changed, however. The numbers¬-of investors, profit margins and sales prices-have dipped slightly, but more than that, the nature of the market has changed, characterized by a “weeding out” of the amateurs with get-rich-quick plans. Smart Investors are quick to respond to such changes. They just ride out the ups and downs and set themselves up for long-term success.

You can, too…………just give me a call (760) 861-5118 and we can get you started on building your future……………today!

For more information on Palm Springs Desert Lifestyle click here.

Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com

Pending Home Sales Rise, Wider Gains Anticipated as Buyers Tap Housing Provision

WASHINGTON, August 07, 2008
Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. “The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”

The PHSI in the West, the index rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago.

Sales gains have been consistently strong in recent months in Sacramento, Calif.; Las Vegas; and Ft. Myers, Fla., where affordability conditions have greatly improved. The pickup in contract signings appears to be broadening with many affordable markets in mid-America now showing year-over-year gains, including Columbus, Ohio; Charleston, W.V.; Oklahoma City; and Colorado Springs, Colo.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the housing stimulus package will provide long-term relief. “Provisions to stem foreclosures are helpful, but a greater lift to the economy should come from higher mortgage limits, enhancements to the FHA loan program and the first-time home buyer tax credit,” he said.

“These are excellent tools that will help buyers get into the market to take advantage of the unprecedented drop in home prices in many areas, as well as a wide selection of inventory, to make an investment in their future,” Gaylord said.

Yun said home prices did not fall as much as anticipated in the second quarter. “Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices,” he said. Home prices are projected to increase 3 to 6 percent in 2009.”

The 30-year fixed-rate mortgage, which also has been vacillating, is likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of next year. NAR’s housing affordability index is forecast to remain favorable this year, averaging 13 percentage points higher than in 2007.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

TIMING THE MARKET: As you can see, this is an Excellent Time to Invest in Real Estate.

Buy NOW and enjoy the upward trend real estate has experienced over the past years. Folks that continue to sit on the sidelines waiting for that “perfect moment,” will soon regret it if they continue to wait the market out.

Homes for sale in Palm Springs.

For other Real Estate News click here.

Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com

The Days After

Many people make the mistake of looking for properties before they have met with a lender. This is exactly what you do not want to do. It is essential that you meet with your lender and get pre-approved for your loan before you look for a home. Sellers, especially in today’s market, will not accept any offers unless they can be assured the buyer can go forward with financing. If you are paying cash for the purchase, it is essential you are able to show the buyer “proof of funds to close” at the time you submit your offer. A letter from your bank or funding source is essential.

Once you’ve found a property and signed a contract to purchase that property, you will contact the lender and send them a copy of your signed Purchase Agreement. The lender will order an appraisal which will take about a week, unless you’re in a market where there are a lot of home sales demanding the attention of all available appraisers. The completed appraisal will be formally submitted to the lender who must then accept it. This process takes more time.

Until you close on the property, you’ll want to monitor the process to see that everything is proceeding smoothly. Even the most minor problems can take weeks to correct, and cause serious delays. You can assure fewer difficulties by making sure that things are in order before the process begins.

First and foremost, get a copy of your credit report and make sure it is accurate. It’s not unheard of for mistakes to be present. If there are problems, find out how to fix them. If the problems cannot be corrected, you may not be able to finance a home.

Make sure that the appraisal amount is sufficient. If it’s not, you may have to come up with additional funds or select another lender or a different appraiser. You might also be able to submit comparables to show that the appraisal is in error if you feel strongly that it is too low.

If you need to cash in stocks, bonds, or other assets to have enough cash for the down payment and closing costs, find out how long this will take. Make arrangements so that the process proceeds in a timely fashion and doesn’t stall your closing.

If the home inspection revealed any problems, verify that these things are being corrected. Generally, the purchase cannot be completed until the work is finished, so delays in making repairs will postpone closing.

As you prepare to close on your new home, stay in touch with your Realtor and your Escrow Officer who will advise you of matters you need to address. Your real estate professional can also help you track the progress of other issues. Communicate clearly so that you know what’s expected of you, and be clear about what you expect. After all, you, your Realtor, your Loan Officer and your Escrow Officer should all be working together to insure a timely and successful closing.

For more tips on what you need click here.

Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com

Saving Dollars By Using A Foreign Currency Exchange Broker

Many of my clients are residents of other countries. I came across this information and wanted to “pass it on” to you. With the continuing strength of the Canadian Dollar and many other European dollars against the US Dollar over the past year, this has been a fantastic opportunity for Canadians and Europeans for purchasing, vacationing and investing in properties in California. Just as you’d use a mortgage broker to get the very best rate for financing, using a currency broker can ensure that you are getting the very best rate for your currency exchange and reduce risk associated with rate fluctuations.

The fluctuations in the exchange market can grossly affect your purchasing power in another currency. For example, a vacation home in Palm Springs that is $400,000 US dollars with a 30 day close will remain the same price in US Dollars for that time. However, the amount of Canadian dollars you will eventually need to exchange for the $400,000 US dollars increases and decreases along with the fluctuations of the exchange rate. How do these fluctuations affect your buying power?

On May 14th, 2008 if you had purchased $400,000 USD at a rate of 1.0043 it would have cost you $401,720 CAD. If you had purchased the same US Dollars on May 21st, 2008—one week later—at a rate of .9816, it would have cost you $392,640 CAD, a difference of $9,080 CAD from the week before. Most currency rates fluctuate nearly 1% a day and market trends can go both up and down, so it’s important to keep yourself informed so you can save money and protect yourself from rate risks.

In addition to the fluctuations in the rates, most major financial institutions charge a premium of 2-4% on the exchange rate, which can cost you thousands more than going through a foreign exchange company. Working closely with a currency trader, such as the ones from Globex Foreign Exchange, will not only save you on these premiums, but they will also keep you knowledgeable of market trends, actively watch the rates for you and contact you when the rates are acting in your favour.

Check it out yourself. For more information and if you have any questions at all, you can contact a dedicated currency trader at Globex Foreign Exchange directly:

Kingsley Leung
(877) 423-2217 Toll Free
(780) 423-2217 Local
kleung@globexfx.com

Globex Foreign Exchange is a Canadian company that is one of the world’s leading foreign exchange brokers with locations across Canada, Australia, the United States, the United Kingdom and New Zealand. Please visit the www.globexfx.com for more information about our company and how our services can benefit you.

To find your new vacation home, or permanent residence click here.

Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com