The math of renting vs. buying a home. Challenging the notion that it is always better to buy.Factoring in appreciation and depreciation into the rent vs. buy decision.
Sunday, October 31, 2010
Friday, October 29, 2010
The Foreclosure Calamity
Oct. 29 2010 |Insight on the foreclosure mess, with Camden Fine, president & CEO of Independent Community Bankers of America.
Labels:
The Foreclosure Calamity
Thursday, October 28, 2010
Foreclosure Crisis Deepens
Wed. Oct. 27 2010 | CNBC's Diana Olick has the details on another big lender looking over its foreclosure practices
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Foreclosure Crisis
Wednesday, October 27, 2010
New Home Sales Up 6.6%
Wed. Oct. 27 2010 | New home sales rise 6.6 percent in September, with CNBC's Diana Olick.
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Home Sales
Tuesday, October 26, 2010
Home Price Index Falls 0.2% in August
In Tuesday's release of the S&P's/Case-Shiller home price index, housing prices fell by 0.2 percent in August from the month before. Fifteen of the 20 featured cities showed monthly price declines, and prices are expected to continue to drop in the coming months.
Phoenix saw the largest decline with a 1.3% drop in home prices. Prices in three California cities--San Francisco, San Diego and Los Angeles--which had previously showed strength, also fell, but by less than 1%.
Detroit, Chicago, Washington, New York and Las Vegas were the only cities to show monthly price increases.
Although the index has risen 6.7% from its lowest level in April 2009, it remains almost 28% below its peak in July 2006.
Housing markets may continue to struggle due to recent complications with foreclosure documents. Would-be buyers are refraining from home purchases because of potentially invalid foreclosure purchases. In an October National Association of Realtors survey, about 23% of real estate agents said they had clients no longer interested in purchasing a foreclosed property due to the foreclosure mess.
Phoenix saw the largest decline with a 1.3% drop in home prices. Prices in three California cities--San Francisco, San Diego and Los Angeles--which had previously showed strength, also fell, but by less than 1%.
Detroit, Chicago, Washington, New York and Las Vegas were the only cities to show monthly price increases.
Although the index has risen 6.7% from its lowest level in April 2009, it remains almost 28% below its peak in July 2006.
Housing markets may continue to struggle due to recent complications with foreclosure documents. Would-be buyers are refraining from home purchases because of potentially invalid foreclosure purchases. In an October National Association of Realtors survey, about 23% of real estate agents said they had clients no longer interested in purchasing a foreclosed property due to the foreclosure mess.
Where Should Investors Place Capital In Years To Come?
In 2008, many average investors saw their retirement portfolios fall between 50-60% as global hysteria gripped financial markets as a direct result of the subprime mortgage crisis. As an accountant, you most likely have clients seeking investment advice; as you advise clients concerning different investment avenues, keep in mind that this is the most uncertain economic period of recent history, and possibly since The Great Depression. Before we address specific investment vehicles that you may want to discuss with your clients and research yourself, there are few key points that must be understood concerning the macroeconomic environment.
Today, we are two years post-The Great Recession, and the U.S. economic recovery has stalled significantly. Unemployment is remaining at stubbornly high levels, consumer spending is stalling, and overall economic growth is stagnating. In late July, Federal Reserve Chairman Ben Bernanke testified before Congress and stated the U.S. recovery is “unusually uncertain.” This uncertain outlook in the U.S. has caused great uncertainty in the realm of retirement planning and general investment because, to be honest no one is sure what will happen in the U.S. economy over the next 5-10 years; however, one scenario that will most likely not play out is a massive bull run in the stock market. It is always good to offer clients a general market outlook and make them aware of the possible scenarios in the United States economy over the next few years, and at this time there seems to be 2 distinct possibilities.
The most realistic possibility is that the U.S. will have several years of very slow economic growth that is between 1% and 2.5% GDP. This extremely slow growth in the U.S. will make it virtually impossible to significantly bring down the unemployment number, and investment opportunities in the U.S. will be scarce for the average investor. The equity market will most likely move sideways for several years.
A second possibility is the U.S. economy moves into the another round of recession as measured by two consecutive quarters of contracting GDP. This would, of course, cause equity markets to sell-off sharply, and general global investor unrest would most likely reach very high levels. This type of slow growth will cause major problems for the average investor. A forex platform will offer more volatility.
One of these two possibilities will most likely play out in the U.S. Twenty and thirty years ago, college graduates in the U.S. were assured of above average gains in the stock market as the U.S. was in a long-term bull market. That has changed, though. Those days are over. As hard as it may be to hear, the U.S. economy will not grow over the next 20 years at the same rate it grew over the last twenty years.
Investors who want yield on their investments over the next 5 years should consider looking to foreign markets. China, India, Brazil, China, and Russia are emerging markets with huge growth potential. The growth rates over the next 5-10 years in these countries is huge.
The problem is how can an average investor take advantage of this huge growth potential in emerging markets? A few practical guidelines should be followed.
1. Stick to the most developed emerging markets because they have the most political and economic stability and should not collapse as some less stable emerging markets could. These include China, India, Russia, and Brazil.
2. Think 1950’s investment in America. Do this in those countries. If you can find the GE, Wal-Mart, etc in these developed nations and build a portfolio around them, you should see strong growth for years to come.
3. Stay away from new technology companies or other companies that are still in infancy. Any investment in these companies should be done strictly with risk capital, and they should not be a part of your portfolio nucleus.
4. Invest in large companies in telecommunications, energy, technology, and other major industries.
You can also take advantage of this investment idea by investing in U.S. based mutual funds that are completely exposed to Chinese companies such as Templeton’s Global Opportunities Fund, Matthews’ China fund, or the U.S. Global Investors China Regional Opportunity Fund.
Another option for investors who do not want to put capital at risk in the form of foreign equities is to focus on emerging market bonds. Emerging market bonds should significantly outperform bonds from developed nations over the next 5 years as interest rates stay at artificially low levels in the developed world. This interest rate yield spread should entice many investors and cause a massive capital flow into emerging market bonds.
Traders who are going to expose assets to a foreign currency should check forex broker ratings to make sure they are investing with a broker that is reputable.
Monday, October 25, 2010
Ben Bernanke On Housing Finance
Oct. 25 2010 | Fed chief Ben Bernanke discusses the future of housing finance in America.
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Ben Bernanke
Existing Home Sales Rise
Oct. 25 2010 | US existing home sales rose 10 percent to a seasonably-adjusted rate of 4.53 million units, the largest monthly gain in 28 years, reports CNBC's Diana Olick.
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Home Sales
Housing Stimulus?
Mon. Oct. 25 2010 | Discussing whether housing needs more stimulus, with CNBC's Diana Olick, and Howard Glaser, The Glaser Group, and Alex Charfen, Distressed Property Institute.
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Housing Stimulus
Saturday, October 23, 2010
Australia Housing bubble Bursting
Bursting the Bubble
Episode of "Insight" that deals with the bursting of the Australian real estate bubble. Aired on 9 September 2008.
Thursday, October 21, 2010
Foreclosure Freeze: Now What
Matt Englett, founding partner of Kaufman, Englett and Lynd, on what consumers should do if they purchased a forclosed home.
Labels:
Foreclosure Crisis
$300B Bailout Ahead for Fannie, Freddie
FBN's Rich Edson on the Treasury Department's plans to invest more money into Fannie Mae and Freddie Mac.
Wednesday, October 20, 2010
Foreclosure Crisis Impact on Housing Market
Real Estate lawyer Stephen Meister on how the foreclosure crisis will affect banks and future mortgage applications.
Labels:
Foreclosure Crisis
Foreclosure Issue Puts Pressure on Financials
PointsandFigures.com's Jeff Carter on the impact of a foreclosure freeze on bank stocks.
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Foreclosure Crisis
Saturday, October 16, 2010
Strategic default : Underwater, Walking Away
Oct. 15 2010 | Insight on the growing number of "strategic default" cases, with Chad Ruyle, YouWalkAway.com, and Peter Safronoff, strategic defaulter.
Labels:
Foreclosure,
Underwater
Thursday, October 14, 2010
Foreclosure Fiasco
Home Repossessions Hit Record
Foreclosure FiascoOct. 14 2010 | Fresh data out today showing the number of homes seized by lenders is hitting record levels, with CNBC's Diana Olick.
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Foreclosure Fiasco
Banks Seize 288K Homes in Q3,
Lenders seized more homes this summer than in any three-month stretch since the housing market went bust in 2006. But many foreclosures may be challenged in court because of allegations that banks evicted people without reading the documents. (Oct. 14)
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Foreclosure Crisis
Wednesday, October 13, 2010
All 50 States Launch Joint Foreclosure Investigation
Oct. 13 (Bloomberg) -- http://www.bloomberg.com/news/2010-10...
Ohio Attorney General Richard Cordray talks about a joint investigation by the top legal officers of 50 states into home-foreclosure practices at banks and mortgage companies. Cordray announced last week that he sued Ally Financial Inc. in state court, claiming its GMAC unit committed fraud and violated state consumer law by filing false affidavits in foreclosure proceedings. States including California and Colorado asked lenders to stop foreclosures. Cordray speaks with Margaret Brennan on Bloomberg Television's "InBusiness."
Ohio Attorney General Richard Cordray talks about a joint investigation by the top legal officers of 50 states into home-foreclosure practices at banks and mortgage companies. Cordray announced last week that he sued Ally Financial Inc. in state court, claiming its GMAC unit committed fraud and violated state consumer law by filing false affidavits in foreclosure proceedings. States including California and Colorado asked lenders to stop foreclosures. Cordray speaks with Margaret Brennan on Bloomberg Television's "InBusiness."
Labels:
Foreclosure Fraud
Inside Americas Foreclosure Mess
Behind the Foreclosure Fiasco
Attorneys Peter Ticktin and Josh Bleil on their investigation into foreclosure 'robo-signers'.
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Foreclosure Crisis
40 Attorneys General Push for Foreclosure Probe
Marketwatch columnist David Weidner argues a potential probe and freeze on foreclosures will depress the housing market.
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Foreclosure Probe
Tuesday, October 12, 2010
Foreclosure Freeze May Sideline U.S. Homebuyers
Oct. 11 (Bloomberg) -- A halt in home foreclosures at the largest U.S. mortgage firms may sideline buyers worried about legal issues, further depressing sales at a time when distressed properties account for almost a quarter of all transactions. Bloomberg's Monica Bertran reports.
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Foreclosure Freeze
Monday, October 11, 2010
Taxpayers to Foot the Bill for Foreclosure Freeze?
Former Senator Rick Santorum, (R-PA), on a government foreclosure freeze and the risks of a government bailout of foreclosures.
Friday, October 8, 2010
Citi, Wells Fargo to Suspend Foreclosures, Too?
Following BofA's lead, Citigroup and Wells Fargo are likely to halt foreclosures as well, says FBN's Charlie Gasparino.
Labels:
Citi,
Foreclosures,
Wells Fargo
Thursday, October 7, 2010
The Government. Could Suspend All Foreclosures?
The Government. Could Suspend All Foreclosures? Nationwide freeze on all Foreclosures
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Foreclosure Fraud
Foreclosure Impact Stretches Beyond Homeowners
FBN's market experts discuss the national impact of foreclosures and what the government should do about it.
Labels:
Foreclosure Impact
The Foreclosure Crisis Continues
Judge Napolitano on The Foreclosure Crisis . Allegations against mortgage lenders lead to government probe
Labels:
The Foreclosure Crisis
Wednesday, October 6, 2010
Citigroup, Ally Sued for Falsely Foreclosing on Homes
Oct. 5 (Bloomberg) -- Citigroup Inc. and Ally Financial Inc. units were sued by homeowners in Kentucky for allegedly conspiring with Mortgage Electronic Registration Systems Inc. to falsely foreclose on loans. The lawsuit, filed as a civil racketeering class action, claims that through MERS the banks are foreclosing on homes even when they don't hold titles to the properties. Bloomberg's Monica Bertran reports. (Source: Bloomberg)
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Citigroup
Monday, October 4, 2010
Foreclosure Fraud Hits Housing Market
Oct. 1—Dylan Ratigan Show--PIMCO's Bill Gross talks about whether banks are cutting corners to speed up foreclosures.
Labels:
Foreclosure Fraud
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