Archive for the 'Buying a Home' Category
Real Estate Sales Turning Upwards on Wilshire Corridor & Venice Beach/Marina Del Rey
October 19th, 2010 Categories: Buying a Home, Real Estate News
Bloomberg reported US housing starts rose to a five-month high this week. Westside Los Angeles residential sales have also been showing strong signs of real estate life and have been picking up in recent months.
Two developments represented by Valerie Fitzgerald The Carlyle Residences, located on the Wilshire Cooridor, and Latitude 33, three blocks from the beach in Venice, CA, have been surging with activity, reservations and sales.
The Carlyle Residences
With fabulous city/ocean views and private elevator access to each residence, The Carlyle Residences offers celebrities and high profile professionals all the services, security, technologies and luxury they expect in 2010 residential development.
Celebs like Bruce Willis, Paul Anka, Donna Summer, Mitch Kemper and Larry King have darkened the entrance of The Carlyle and call it home — at least part time.
From young entrepreneurs to foreign pied-a-terres to heads of companies looking for the freer and turn-key lifestyle The Carlyle provides, and sales are happening.
And this increased activity reflects the market is doing better.
Luxury property buyers and investors are exuding more confidence.
This is hopefully a market indicator for other segments ranging down to the mid markets.
Latitude 33
The Sky Collection at Latitude 33 is designed for discerning homeowners who seek a high-design, style-celebrated, private lifestyle in a concierge-attended setting. The nine-story tower offers 45 units, including 12 penthouses that range from 1,278 to 3,140 square feet.
Sales have been fast and furious since opening to the public in April. If you have any interest in this building you should contact Latitude soon to find your favorite model.
The Boardwalk Collection, the second phase is open at Latitude 33, is set amidst a lushly landscaped courtyard and presents an eclectic mix of floor plan options including townhomes, reversed townhomes and single-level units.
There are only 27 units, ranging from 1,682 to 1,995 square feet. These units have also experienced robust sales and will likely be sold out soon as they’re a one-off right now in the Venice Beach/Marina Del Rey area. You will not find a development coming to the area like this in the near future.
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the Westside Los Angeles real estate brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business. For more information visit http://valeriefitzgerald.com or call 310-285-7515.
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US Housing Makes Leap to 4-month High
September 22nd, 2010 Categories: Buying a Home
Home construction increased last month and applications for building permits also grew. The gains were driven mainly by apartment and condominium construction, not the much larger single-family homes sector.
Construction of new homes and apartments rose 10.5 percent in August from a month earlier to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That’s the highest level since April.
Pulling the figures up was a 32 percent monthly increase in the condominium and apartment market, a small portion of the market. Single-family homes, which represented about 73 percent of the market in August, grew more than 4 percent.
Housing starts are up 25 percent from their bottom in April 2009. But they remain 74 percent below their peak in January 2006. Single-family housing starts are up 11 percent from their low point in January 2009, but down 78 percent from their peak in January 2006.
Builders are struggling with weak demand for new homes caused by high unemployment and a glut of foreclosed homes on the market. They benefited in the spring from federal tax credits, but those expired in April.
Paul Dales, U.S. economist with Capital Economics, said the high number of vacant homes, mounting expectations of renewed price falls and economic constraints on households will continue to weigh on the industry.
“Homebuilding activity remains at an astoundingly weak level,” Dales said, adding that construction has to be more than double current levels for the market to be considered healthy.
Building permit applications, a sign of future activity, grew by nearly 2 percent to an annual rate of 569,000.
Lennar Corp., a major builder based in Miami, said Monday the number of buyers signing agreements to purchase its homes fell 15 percent from a year ago in the three months ended August 31.
“It’s been a tough summer,” said Stuart Miller, Lennar’s chief executive. on a conference call with investors Monday. “As we’ve gone into September, we’re seeing a little bit of pickup in our traffic, but that shouldn’t be cause to have a sigh of relief at this point.”
Construction activity rose 34 percent in the West and was up 22 percent in the Midwest and 7 percent in the South. However, construction fell by 24 percent in the Northeast.
On Monday, the National Association of Home Builders said its monthly index of builders’ sentiment was unchanged in September at 13. The index has now been at the lowest level since March 2009 for two straight months.
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Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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A housing rebound? Yes, it’s possible.
September 15th, 2010 Categories: Buying a Home
At a time of slumping home sales and a glut of unsold inventory, it’s hard to imagine how anyone could form a bullish take on the troubled U.S. housing market. Even though home prices have risen slightly in recent months, experts in charge of Standard & Poor’s Case-Shiller index, a crucial indicator of the health of the housing market, warned as recently as last month that the market remains weak. And some analysts think home prices could fall further by 15% to 20%.
But talk about real estate has shifted somewhat lately. It looks as if the contrarian view of the housing market is beginning to gain traction, if ever so slightly.
Credit Suisse says the worst is behind us and that fear of another hit on the housing market is just overreaction. The bank offers a few factors that could help home prices from here on out, including government support of about 70% of home mortgages that will likely keep prices from revisiting the nerve-wracking plunges seen in 2007 and 2008. Also, The Wall Street Journal’s Brett Arends earlier this week listed 10 reasons to buy a home, countering a recent Time Magazine cover story earlier this month that questioned the pros of homeownership. Arends lists everything from record low mortgage rates to savings on taxes to guarding against inflation.
All are worth noting, but one of the more striking bullish arguments come from an economist at Massachusetts Institute of Technology’s Center for Real Estate. Bill Wheaton, who thinks the housing market is poised to make a strong comeback, calls home construction “a sleeping giant that is about to wake up.”
Wheaton thinks much of the excess home inventory would either be sold, occupied or otherwise absorbed by 2013. But from 2011 onward, demand should return to pre-recession levels. What’s more, he says, the recovery of home construction could boost overall GDP at levels unseen during recoveries after previous recessions, with the exception of the massive building that happened right after World War II.
Not just a comeback, but a strong one
“Housing construction will not only rise, but it will stay high for a while, which didn’t happen in previous recoveries,” Wheaton says, commenting on a paper he wrote for the center in 2009. “It won’t just be a one or two year blip.”
So is Wheaton really onto something, especially at a time when so many people are jobless and housing units sit empty — an unknown number of which could eventually fall to foreclosure?
The crux of Wheaton’s argument lies in the rate of residential construction today. It’s been historically low – so low that he believes demand is actually exceeding the level of building going on. This helps set the grooves for a relatively large comeback in residential investment.
Here’s how Wheaton backs the imbalance of demand for housing units and residential construction.
He estimates that housing demand in 2009 was at about 1.1 million units – more than twice construction at the time. At this rate, the excess inventory will eventually be absorbed. “It’s going to be a long time before construction picks up with demand,” Wheaton says, adding that this should help housing prices. Foreclosures won’t stop anytime soon, he says, but demand will return to a more normal level, clearing out the inventory and eventually sparking more new construction.
Housing construction could hugely drive America’s economic growth over the next few years, Wheaton says. Residential investment as a share of GDP is relatively small, averaging about 3% to 4%. But given that there’s so little building going on today, it’s plausible housing construction could add an average of 0.7% to GDP growth per year over five years – a level far greater than what has been seen during recoveries of previous downturns.
Some might think Wheaton sounds way too bullish given what most experts are saying about America’s housing rut. He could be wrong. He might only be half-right. But the bull’s side is worth hearing as much as the bear’s.
From CNN Money
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Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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Fannie Mae says lenders must verify mortgage applicants’ debt loads before closing
August 30th, 2010 Categories: Buying a Home
Despite earlier reports to the contrary, it turns out that your mortgage lender will not have to pull a second full credit report on you hours before closing on your home purchase or refinancing.
In a clarification of a policy announced this year, mortgage giant Fannie Mae now says that applicants will need to come clean about any debts they’ve incurred since they submitted their mortgage application — or debts they never disclosed during the application. But a formal pre-closing credit report will not be mandatory to confirm their creditworthiness.
Instead, loan officers can use other techniques to verify that you haven’t financed a new car, taken out a personal loan or even applied for new credit in any amount that might make it more difficult for you to afford your monthly mortgage payments.
Among the techniques Fannie expects lenders to use on all applicants: commercial or in-house fraud-detection systems that have the capability of tracking applicants’ credit files from the day their loan request is approved to the moment of closing.
Though Fannie made no reference to specific services in its recent clarification letter to lenders, some commercially available programs claim to be able to monitor mortgage borrowers’ credit activities on a 24/7 basis, flagging such things as inquiries, new credit accounts and previous accounts that did not show up on the credit report pulled at the time of initial application.
One of those services is marketed by national credit bureau Equifax and dubbed Undisclosed Debt Monitoring. Aimed at what Equifax calls “the quiet period” between application and closing — often a month to three months — the system is “always on,” the company says in marketing pitches to mortgage lenders.
Home loan applicants failed to mention — or loan officers failed to detect — “up to $142 million in auto loan payments” during mortgage underwriting in first-mortgage files reviewed by Equifax last year alone, according to the credit bureau. Those loan accounts had average balances of $361 a month — more than enough to disqualify many borrowers on maximum debt-to-income ratio standards imposed by Fannie Mae, Freddie Mac and major lenders.
Why the sudden concern about new debts incurred after mortgage applications? It’s mainly because Fannie and others have picked up on a key type of consumer behavior pattern that has helped trigger big losses for the mortgage industry in recent years: Some buyers and refinancers delay creating new credit accounts until they’ve cleared strict underwriting tests on the debt-to-income ratios and been approved for a loan.
Then they splurge. Additional debt loads can run into the tens of thousands of dollars, executives in the mortgage and credit industries say. Had those new accounts been present on their credit files at application, borrowers might have been turned down for the mortgage, or required to make a larger down payment or pay a higher interest rate.
Fannie’s new policy puts the burden of detecting these debts squarely on lenders’ or loan officers’ shoulders. Whether they pull additional credit reports — still an option allowed under the revised policy — or use some form of monitoring service, lenders must guarantee that the debt loads stated in any mortgage package submitted for purchase by Fannie Mae are scrupulously accurate as of the moment of closing. If not, the lender probably will be forced to endure the most painful form of punishment in the financial industry: a forced “buyback” of the mortgage from Fannie Mae.
Billions of dollars in buybacks have been demanded by Fannie Mae and Freddie Mac this year alone — a fact that is likely to make lenders even more eager to conduct some type of refresher credit check or continuous monitoring of all new loan applicants.
What does this mean for you if you’re planning to finance a home purchase or refinance your existing mortgage into one with a lower interest rate? Tops on the list: Be aware that sophisticated new credit surveillance systems are being placed into operation in the mortgage industry.
Next, try not to inquire about, shop for or take on new credit obligations during the period between your application and the scheduled closing. If you want that new loan, keep your credit picture simple — no significant changes, no additions — until you get the mortgage.
During the heady days of the housing boom, nobody was looking for debt add-ons before closings. Now they are scanning for them all the time.
From L.A. Times
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Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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Why the 27% drop in home sales shouldn’t worry you (too much)
August 27th, 2010 Categories: Buying a Home
From Ann Brenoff on WalletPop
There was a collective gasp when the news broke Tuesday that existing home sales had fallen off by a whopping 27%. Economists stammered and teared up over the deterioration of the housing market. And we’re sure that more than a few real estate agents — the ones who managed to take their heads out of the oven — went straight to call Mom and see if their old bedrooms were still available.
Time to take a deep breath. Here’s what the news really means to you: Likely nothing.
Do you have a house you need to sell? No? Then put your crying towel away, or loan it to someone who really needs it.
There are 75.1 million owner-occupied housing units in America and only 4 million of them are on the market today, according to the National Association of Realtors. The rest of you should just go quietly away. Yes, your home is worth less on paper than it was a year ago or even five years ago. But that was paper money, just like what you play Monopoly with. You don’t have to sell, you likely can’t anyway, so why drive yourself nuts over it?
Now that those people have left the post, let’s work on those who really do need to sell. I may have some encouraging news for you. While that 27% free-fall is no doubt accurate, it may not be where you live. Now, more than ever before, the real estate market is hyper-localized. That means the depth to which you are impacted by the housing market crash depends not just on which city you live in or even which neighborhood of that city, but actually on which streets within that neighborhood.
Ernie Carswell, a top-producing agent with Teles Properties in Beverly Hills, offers a neat micro market report each month for Los Angeles. Looking at the one he sent me yesterday, you get a totally different feel for what’s going on in the housing market.
Here’s but one example: Comparing July 2009 with July 2010, in the high-end community of Bel-Air, Calif., the median price of sold homes went up 1.4%. Yes, up. In July 2009, there were 213 properties on the market for an average of 96 days; the inventory moving at the snail’s pace of 19.6 months. Yet in July 2010, there were 178 properties on the market for just 48 days and the inventory was expected to last 6.2 months. Higher sales prices, fewer homes to compete with, things moving faster.
Those numbers would suggest a different real estate story than what the national figures tell. Location really does matter. And before you dismiss me as out of hand and think prices are only holding in the high-end market, let me assure you they are not. Again, it’s pockets. If you are in a hot pocket, you may not be as bad off as the broader numbers suggest.
I’m not saying don’t panic, just don’t panic yet. One thing is really does underscore is the need to hire an agent who seriously knows your street. This isn’t a job for the sister-in-law who just got her license or someone who assures you that they “can sell anywhere.”
Carswell says, “As the economy and the real estate markets continue to change, the nuances between different areas and different neighborhoods are becoming increasingly magnified. One neighborhood may show a sales increase, while another neighborhood just blocks away may be experiencing a dramatic drop in sales from the previous year. While the media publishes its statistics based on national, state and county trends, this distorts the public’s perception of what could actually be happening in their own neighborhood.”
Listen to the man. He speaks the truth. Bloggers love to post items about how far the rich and famous have fallen or tell you which celebrities had to drop their asking prices by millions. But there is only one address you should be concerned with: Yours.
Connect with Valerie…
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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Three Lessons from Three Years of Recession
August 25th, 2010 Categories: Buying a Home
If there’s one thing that time consistently does, it’s move forward. So, as this Great Recession continues to wear us down, it may be time to cast our eyes towards the horizon as well as take stock in what we’ve learned so far, three years into this latest economic slump.
Here are three lessons we have learned within the last three years, with a glimpse to what the future holds for the new real estate.
1. A house is a home, not a piggy bank
The great agents always knew this, but it has become—and will continue to be—a truism that will linger with us for a long time to come: a house is a home, not an investment.
Too many Americans have lost too much to think of their homes as a siding-clad ATM. Instead, the best agents will be apt at matching houses with clients to find a perfect fit. A home, after all, is more than just crown moldings, copper wiring, and bay windows—it’s a sense of place, of community and of comfort. It matches who you are and fits seamlessly within your daily life.
Post-recession agents will need to have this knack for matching house with heart. It’s what real estate was always about, and it will be even more important from here on out.
2. The old way is not going to cut it
I’m sorry to say but, like your car phone, your fax machine is obsolete. It’s amazing how quickly our world has changed and hastened within the last three years. Just think, back in 2007, Twitter was still in its infancy, Facebook was just a trend, and the first iPhone had just come out, with the app craze still months away.
Clients are now buying movie tickets and SUVs online. They are texting more than they are calling. Their lives are busier than ever, so your service had better fit within their lives.
New real estate technologies, such as DotLoop’s online contract negotiation platform, will be the new normal in an industry known to drag its feet when it comes to tech tools. As this Great Recession has taught us, however, great agents can no longer afford to simply leave a message after the beep.
3. It really is all about people
As with any great crisis (opportunity?), the Great Recession has reminded us of that one ideal that real estate was always about, but somehow got buried underneath the deluge of offers and listings: it all comes down to people.
Real estate is one of the last industries that cannot be automated. No matter how many websites, laptops, or smart phones are out there, no computer program can tell you that you can get the best lunch meat at the corner deli on 6th or that the old man at the house next door will always be willing to lend you his ladder. A home, neighborhood and community can never be quantified into ones and zeros. It’s your job as an agent to be the expert of your area, and to make sure that you’re putting the people you’re serving ahead of everything else.
It’s only natural to want to get rid of this Great Recession, to tear away from this downturn and go back to “normal.” But the new normal will not be like the old normal. Three years from now, we most likely will be recovered, but we’ll also be changed—for the better.
Better technology for agents, better understanding of our clients and a better perspective will help to shape the next generation of real estate.
From RIS Media
Connect with Valerie…
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and SchusterHeart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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Secrets Mortgage Lenders Don’t Want You to Know….
July 12th, 2010 Categories: Buying a Home
The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note.
For many of us our mortgage payment is the most important financial decision we’ll ever make. Doesn’t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!Unbelievably, many of us sign the first mortgage placed in front of us. Typically the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars.
Your real estate professional has established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure that all the financial steps are taken care of properly and economically. Utilize a Lender With Established Ties to an Agent – Lenders are much more flexible with the real estate agents who have done business with them previously. This relationship then establishes them as a team. The lender and agent work effectively together, referring each other business.
That’s why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!Don’t Attempt Paperwork Alone – All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lenders help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
Look at All Your Options - Make sure you see at least 5 loan programs for your mortgage. Lenders have at least 10 programs and should work with you and your agent on deciding what is best for your circumstances. Evaluate all your options. After all it’s your money you’re spending – not theirs!
Demand Service - There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible, but don’t overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Don’t let the process become so intimidating that you lose that understanding.
Stay in Complete Touch – You should receive a written report from your lender about every step. This will ensure that no details are overlooked and there will be no surprises.
Negotiate a Flexible Loan - Don’t just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start going up. Make sure that you understand whether or not that is an option in the package you are looking at.
Don’t Give Up on the First No - Initial decisions are not always final decisions. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and agent. Many times special circumstances when explained properly to the person in charge, will win you the loan.
Don’t Wait for the Bottom of the Market - The odds of you hitting the bottom of your market are about like the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You’re better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won’t miss out on the property you’ve spent so much time locating.
Be Honest With Your Lender - Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
Become Completely Educated – Pick your lender’s brain. Lenders will teach you all about your various options, even if you haven’t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender on down the line.
Get Prequalified - Lenders will provide you with a certificate of pre-qualification. By getting prequalified you know exactly what financial parameters to stay within. Your agent and lender will consult with you and help you get qualified for the loan that best fits your needs. Many times they are able to get you a larger loan than you may have thought possible.
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at 310-285-7515.
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New Modern Beach Residences Now Open in Marina Del Rey
June 30th, 2010 Categories: Buying a Home
Los Angeles-based SunBrook Partners announce Valerie Fitzgerald as the exclusive sales agent for their new beach community development Latitude 33 which opened officially on Wednesday, June 16.Located in Marina Del Rey at 330 Washington Blvd, Latitude 33 is a collection of 122 homes three blocks from Venice Pier starting in the low $600s. The community is made up of luxury condominiums, town-homes and high-rise flats. The top three floors of the building are exclusively penthouse units.
“This is a long awaited debut for this amazing and culturally-expanding community,” says Valerie Fitzgerald. “This project offers contemporary beach living with traditional Southern California lifestyle.”
A modern beach-inspired community combining Los Angeles’ high-style attitude with the unique and eclectic flavors of the locale, Latitude 33 offers flats and townhomes in three distinctive yet complementary lifestyle collections: the SKY Collection, BOARDWALK Collection and BEACH Collection. Latitude 33 combines an inviting atmosphere with a unique coastal backdrop, perfect for enjoying the ultimate California lifestyle.
A West Los Angeles veteran representing high-profile new construction projects, Fitzgerald knows what it takes to promote and sell high-end real estate developments from the construction phase to roll out. Fitzgerald most recently oversaw sales at The Carlyle Residences (The Elad Group of New York’s Plaza Hotel), a 24-story, 76-unit tower rising on the Wilshire Corridor. In 2005 she lead sales at The Century, as well as at The Hollywood in 2009.
Latitude 33 offers residences ranging $600,000 to $2,400,000. Residences include designer-selected wood flooring in entry and throughout main living areas dramatic floor-to-ceiling windows and private balconies with glass rails. Kitchens have modern Italian cabinetry featuring clean lines of Bon Tempi or Gato design, elegant granite countertops, professional quality Wolf stainless steel built in appliances, Sub Zero refrigerators and wine coolers, Grohe stainless steel faucets and Kohler stainless steel sinks.
Valerie Fitzgerald has more than 20 years real estate experience and one of Coldwell Banker’s top producers nationwide. She was recently named one of The Wall Street Journal’s top agents and is president of The Valerie Fitzgerald Group in Beverly Hills, CA. Author of Heart and Sold: How to Survive and Build a Recession-Proof Business (Simon and Schuster), and is a regular contributor to real estate trade publications. For more information, visit: http://valeriefitzgerald.com.
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The State Of The World’s Real Estate Markets
June 1st, 2010 Categories: Buying a Home
In an interview on The Creating Wealth Show, Matthew Montagu-Pollock, the head of Global Property Guide, discussed his observations of the current state of the world’s real estate markets. From Australia to South America, he outlines what investors should be paying attention to in order to formulate smart investment strategies. From www.nuwireinvestor.com.
Australia and New Zealand Real Estate
Matthew launches this guided investment tour in Australia and New Zealand where favorable lending rates have helped markets buck the latest downward trend. Unfortunately, rates suppressed in the interest of economic recovery inevitably rise, and prices haven’t fallen far enough to warrant “a happy investor strategy.” As with much of the world’s property market, Matthew recommends delaying entry 3 – 4 years. The longer, slower cycles that distinguish real estate from the stock market ’s sharp swings provide time to exercise caution instead of a headlong rush.
Developing vs. Developed Markets
Mortgage financing is a relatively recent concept in much of the world, where historically inaccessible lending has kept prices low. The notion that developed markets are inherently less risky was disproved with the latest collapse. In fact, developing markets often offer greater opportunity, including high rental yields which are a key indicator of opportunity for appreciation.
Asia Real Estate Markets
Prospects for investors in Asia are as diverse as the region itself. The more structurally sound markets are on the verge of a bubble. Authorities in Hong Kong and Singapore are ready to clamp down on lending and raise interest rates. Unfettered construction and soaring prices have left China’s market in danger of over-heating while the drop in gross rental yields from 10% to less than half that is a troubling sign. In contrast, Japanese officials are restricting development; rental yields are just average, and the stagnant market is nearly impenetrable to foreign investors. In Asia’s developing markets, political instability is disquieting to investors, especially in Thailand. The 12% rental return in Indonesia and the Philippines is deceptive because taxes erode up to a quarter of investments. Overall, Asian market policies favor landlords, while Australia is neutral.
Eastern Europe Real Estate
Patience is the best investment strategy for Russia and Eastern Europe, where the collapse of Baltic states has led to price declines of 60%. Matthew advises waiting 5 years at minimum to allow time for economic stability to be restored, despite the lure of bargain property. The outlook for Hungary and Poland is more promising, with rental yields at 8% and 6% respectively. The forecast for the rest of Europe is more dismal. Because the strength of real estate is inextricably tied to the broader economy, investors should rule out Ireland, Spain and Italy where GDP growth is abysmal. Germany and Belgium can’t be recommended because foreign investors bear a heavy tax burden, while prices in the UK are peaking and favorable interest rates won’t last forever.
Middle East Real Estate
Dubai’s collapse has put it in the spotlight, but investors should have been forewarned by a precipitous drop in rental yields two years earlier. Elsewhere in the Middle East, political instability detracts from price appreciation in Jordan and Lebanon. Cairo in Egypt is an example of why Matthew is bullish on capital cities since they furnish a pool of expatriate tenants. Exotic Morocco and tranquil Tunisia also possess potential.
South America Real Estate
South America holds promise for investment, especially in Uruguay and Brazil. Rent returns in Sao Paolo are 7%, and the Brazilian government has set a course for growth. Despite its reputation, Colombia shines with its rich history, and rent returns are favorable in Lima, Peru.
North America Real Estate
The guided investment tour ends in North America, which Matthew predicts will be ripe for investment within 18 months since this market has nearly cycled through the latest crisis. Although Canada wasn’t impacted as severely as the US, its pro-tenant policies are a deterrent to investing.
Matthew ends the interview with encouragement for investors, praising real estate as a source of security in confusing financial times, providing a tangible asset and steady income especially for investors who adopt a hands-on approach.
This article is based on Episode 166 of Jason Hartman’s Creating Wealth Show. You can listen to the full podcast at JasonHartman.com, a real estate investment and wealth creation site.
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Buy or Sell You Luxury Homes in Westside Los Angeles at Valerie Fitzgerald Real Estate Listings
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Refi madness: Surge continues as rates edge lower still
May 27th, 2010 Categories: Buying a Home
With mortgage rates near record lows, homeowners are applying to refinance their loans at the highest rate in seven months, the Mortgage Bankers Assn. said Wednesday.
The volume of refinancings jumped 17% last week as the average contract rate for a 30-year fixed mortgage sank to 4.80% from 4.83% a week earlier, the mortgage trade group said. It was the highest volume since October, according to the group’s weekly report on home loan applications.
Refinance applications had begun to surge two weeks earlier as global investors worried about the European debt crisis fled to the perceived safety of U.S. Treasury securities. That drove down the yield on Treasuries and mortgage rates followed, as they generally do.
Although the latest surge is powerful, it doesn’t compare with the tidal wave of refinancings that took place after December 2008, when the Federal Reserve, battling the fierce recession, first lowered its benchmark interest rate to nearly zero.
That burst of replacement home lending continued as rates bumped lower until September 2009, when 30-year fixed-rate loans dropped below the 5% threshold for the first time in decades, recalled Stew Larsen, head of mortgage banking for Bank of the West.
There are still plenty of homeowners with higher-rate loans who have never refinanced despite several opportunities since then to lock in rates starting with a 4, he said.
“Many of our customers now feel they missed a couple of other windows,” Larsen said.
In contrast to the latest refinance boom, applications to purchase homes fell further after a sharp decline the week before. The refinance share of mortgage activity was at 72% of total applications, up from 68% the previous week and the highest refinance in the survey since December 2009.
Industry observers said any home purchasers who could do so completed their transactions by the end of April, when federal tax credits expired for people buying houses.
It will be worth watching to see if purchase lending picks up again without the federal stimulus to spur sales.
– E. Scott Reckard
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business.
Buy or Sell You Luxury Homes in Westside Los Angeles at Valerie Fitzgerald Real Estate Listings
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