When it all Falls Down...

By: Alcides Hoy Jr.

With the Big Apple being one of he many places us college graduates drift toward, we must be concerned on how those Manhattan homes and apartments are holding up. As we go through this economic crisis Manhattan real estate sales begins to decrease. We could suspect the harder the fall the further the sales will drop. So many people are losing their jobs and not receiving high paying jobs which is making it difficult for anyone to afford an apartment in Manhattan. The worst part is that inventory is accumulating faster than Real estate agents can rent these spaces. Now banks are not trying to give out credit to just about anybody which leads us to think how will we pay for these high class living quarters. Its as if they leave us with no choice but to search for different job markets to apply to. The longer we have this economic downturn the harder it will be for the New York City real estate market to get back on track. So now we have to pose a challenge to ourselves and think what can we do to change this harsh backdown?

http://money.cnn.com/2008/10/02/real_estate/manhattan_real_estate/index.htm

http://www.nysun.com/business/unthinkable-happens-manhattan-apartment-prices/84900/

http://www.nytimes.com/2009/03/08/realestate/08condo.html?ref=realestate

House Market on a Possible Rise

By Alcides Hoy Jr.

With the recent economic crisis everyone is giving up on spending. Yet it seems as if hope is being restored back into the housing market. Industry reports show that in February there was an increase in the sales of existing homes. This was strong recovery from January downhill housing market sales. I know many of you are asking it is time to jump back into the housing market? I cant say but I also cant say no by a long shot. This is definitely a time to retreat back into research mode and find about how the market is looking. Many of us wonder with the fluctuating market lately how could we put our trust back into the industry. Sales for the current month increased nearly six percent from its declining five percent in February. Ian Shepherdson, chief U.S. economist at High Frequency Economics, said there's a "good chance" the collapse in home sales that has been going on since September is "now over." There you have it folks a professional giving you some assurance that we might be able to gather our funds and gradually lean back into the housing market.

http://money.cnn.com/2009/03/23/real_estate/existing_home_sales/index.htm?

http://online.wsj.com/article/SB123781706899814483.html

http://www.hispanicbusiness.com/news/2009/3/23/existinghome_sales_increase_in_february.htm

The DOW Is JUMPIN JUMPIN

By: Alcides Hoy Jr.

NEW YORK (CNNMoney.com) -- Stocks recharged a rally Monday after Treasury's plan to buy up billions in bad bank assets and a better-than-expected existing home sales report raised hopes that the economy is stabilizing.
The Dow Jones industrial average (INDU) gained 390 points, or 5.3%, with 40 minutes left in the session. The S&P 500 (SPX) index rose 42 points, or 5.6%. The Nasdaq composite added 74 points, or 5.1%.
"I think the stock reaction is a vote of confidence in the plan," said Jack Ablin, chief investment officer at Harris Private Bank.
He said the stock market is also reacting well because the plan is skewed in favor of the private investor, who only has to be responsible for around 7% of the total in any transaction.
But other analysts were less sanguine. "The plan is a rehash of what we've seen before and it still doesn't resolve the issue of how to value the bad assets," said Stephen Leeb, president at Leeb Capital Management. Click to Read More

Fees Are Moving On Up

By:Alcides Hoy Jr.

It is common knowledge that many California real estate companies and agents are feeling a serious pinch as a result of the downturn in the real estate market. Less well known is the fact that the state agency which regulates those companies and agents is having a similar experience. Directors of the California Association of Realtors® learned about this at their recent meetings in Monterey when they were addressed by Real Estate Commissioner Jeff Davi.
Unlike many state agencies, the California Department of Real Estate (DRE) is not supported by the state's general fund. Like the Department of Fish and Game, its financing is provided by charging for various fees and services. In the case of the DRE, the bulk of the money it brings in is from the issuance of new and renewal licenses and from fees charged for the administration of licensing examinations. Click to Read More

IRA: To put or not to put Real Estate... That is the question

By Alcides Hoy Jr.

With IRA investments into real estate nearly doubling it makes you want to know the WHATS THE SECRET? As stocks decrease real estate seems like an easier way to save any accounts that are doing bad. In an article Walter Updegrave said "Dealing with the myriad rules governing IRA accounts makes the task even more challenging." This is a statement many of can agree with because with news laws being passed everyday the government makes it harder and harder to incorporate real estate into your IRA. With only a small amount of twenty percent of IRA having balances of over $100,000 no one can really afford to buy any piece of property. Then if you gain the funds to fall buy few properties into your IRA your portfolio could loose diversification over time. As you weigh your portfolio to only Real Estate this could increase your risk due to the it being less diversified. With the real estate industry doing as poorly as it is now, if investors were to have mostly real estate at this time their portfolio would be loosing money. This is why diversification is important because without it your portfolio could depend too much on one asset. So if you decide to include real estate into your IRA make sure it is a balanced amount somewhere between ten to fifteen percent.

http://money.cnn.com/2005/08/11/pf/updegrave_0509/index.htm

http://money.cnn.com/2005/04/22/pf/expert/ask_expert/index.htm

http://money.cnn.com/2007/11/30/pf/expert/expert.moneymag/index.htm

Know Before You Go

By Alcides Hoy Jr.

Many of us are approaching the home buying phase real soon. There are few things we should know first before we go.

Real Estate vs Stocks

By: Alcides Hoy Jr.

Round 1
Performance
Real estate has packed quite a punch of late, appreciating 12.4% annually between 2001 and 2006, according to the S&P/Case-Shiller U.S. Home Price index. That clobbered stock prices, which gained only 4.3% a year as measured by the S&P 500.
But over the long run stocks win easily. A new study by Jack Clark Francis, a finance and economics professor at Baruch College in New York City, and Yale's Roger G. Ibbotson compared the annual returns of real estate from 1978 to 2004 compared with those of 15 different "paper" investments, including stocks, bonds, commodities futures, mortgage securities and real estate investment trusts (REITs).
The results? Housing delivered a solid but unimpressive annualized return of 8.6%. Commercial property did better at 9.5%. The S&P, however, delivered a crushing 13.4%.
Other studies argue that real estate's returns are much worse. Yale finance and economics professor Robert Shiller, author of Irrational Exuberance, who looked back to 1890, contends that only twice has real estate produced truly outstanding returns: after World War II, when returning troops were starting their families, and from 1998 to 2005, a period he thinks is a bubble.
Housing's rate of return, he argues, has to trend back to the mean of about 3% a year - barely above the inflation rate. If that's starting to happen now, he says, we could be facing many years of losses.

Click to Read More

Real Estate Success

By:Alcides Hoy Jr.

In todays world everybody feels like buying real estate is just that simple. Many times it is the backstage tips that will allow us to flruish when it comes to property buying and selling. You have to ask yourself before WHAT DO I REALLY KNOW ABOUT REAL ESTATE? Here are some tips that could possibly change your life or better yet change the way you look and react toward buying and selling property.
When selling a home people minds are trained to search for the highest value. But in reality when we are in an economy that is so vulnerable hiking up the price will only hurt you. Your best bet is to keep your house at an affordable price so that you can seal the deal which is the main objctive. The longer it sits in the houses for sale pool, the more the price could be forced to drop. Also when selling make sure that the walk from the driveway to the inside of the front door sets the tone. Many times people want to see the appeal on the exterior in order to want to see the interior.
There are some sellers but almost twice as many buyers in the world. Many times you want to set the trend of the askign price. Do your reasearch to find out what the going price is on a the type of house you are buying and how long has it been sitting on the market. And lastly dont expect the unexpected because you could set yourself up for dissapointment. Overall as a home buyer and seller you need to have a strong business plan so that if one thing goes wrong you will have a counteraction for to get as close to success as possible.


http://money.cnn.com/2006/05/04/real_estate/realestatetips_selling/index.htm

http://www.nytimes.com/2005/02/13/realestate/13assets.html?_r=1&scp=5&sq=real%20estate%20tips&st=cse

http://money.cnn.com/2006/05/04/real_estate/realestatetips_buying/index.htm

Capitalize On Foreclosures

By: Alcides Hoy Jr.

Investment Spot: Panama

By: Alcides Hoy Jr.