Right Time To Buy? September 29, 2008

House I liked in Delray Beach

Just when is the right time to buy?  Should you keep waiting for prices to drop even more?  I was in Delray Beach, Florida in August.  People there were saying, “you will never again see prices so low, but in the Spring they might be even lower.”  So what do you do — wait?  What if they start going back up?

The thing is now is a great time to buy.  And the Springtime probably will be too.  But more importantly, where are you in this process?  Do you need a place to live?  Do you plan on living in the property for a minimum of 3 years, but preferably 5 years?  Do you have funds to put into the transaction?  Do you expect your job and income situation to remain steady for the foreseeable future?  Will you have funds leftover for an emergency?

It’s not just about price and timing the market.  It’s about much more than that.

Listen and Learn September 27, 2008

This morning I saw my Chiropractor.  While she was torturing uh I mean treating me, she asked about my book.  She went on to relate her experience as a single woman buying real estate.  She has purchased two homes, one in Maryland and one in Texas.  Unfortunately, her experience was the same in both cases:  the real estate agent didn’t listen to her.    “She kept showing me 4 bedroom houses with 2 storys, and it was just me living there.  I never wanted anything that big.”  She felt as if a lot of her time was wasted, and that she did the work for the agent.  Moral of the story:  Listen to your clients and you’ll learn what they need and want from you.

700 Club September 26, 2008

$700 Billion Club, that is.  Last night we had the biggest bank failure in U.S. history — Washington Mutual.  Today we’re waiting to find out what happens with the Treasury Secretary Paulson’s plan.  And, tonight there may or may not be a presidential debate.  It’s enough to make one want to take the day off and go to the movies.  Bad news.   More news.  Too much news to process.

Yesterday I had lunch with a friend who is saving as much money as she can right now.  Her plan is to start looking this spring for her first house to buy.  She believes prices will be just right by then.  Between now and then she’s researching neighborhoods so she’ll be ready to jump on a property if she needs to.  The important thing is:  she has a plan.  What’s your plan?

Goldilocks & the 3 Bears September 22, 2008

Remember the fairy tale about Goldilocks and the 3 Bears?  It took her a couple of tries before she found the porridge and bed that was ‘just right.’  Searching for a property is akin to Goldilocks — if it doesn’t feel right, you shouldn’t buy it.  Even if all other factors are there — price, location, amenities — you don’t want to find yourself with a big case of Buyer’s Remorse.

The 3 Bears – Illustration by Arthur Rackham

It’s Scary Ride. September 19, 2008

Roller Coaster – Definitely Not A Good Idea

Originally uploaded by 10:10 Photography (aka Coroner)

The market has been crazy in the last week. It’s scary. Downright frightening. My opinion is that Wall Street got us into this mess. They were the drug lords of the loan products.

Market is opening up. September 8, 2008

One of the results of the current credit crisis has been the extreme tightening of the mortgage market.  Plus, rates are higher than they should be.  That is until today!  Yesterday Treasury Secretary Paulson announced the U.S. government bailout of Fannie Mae & Freddie Mac.  Fannie & Freddie own approximately 7 TRILLION in mortgages.  Yes, it will cost the taxpayer, but alternative of doing nothing could end up costing us significantly more.

Look at article in The New York Times for more info.

I did some things right. 2 things. September 4, 2008

I didn’t wait to get a diamond before buying my first home.  I bought within my budget.  Those were 2 very important issues.

However,  my research on the whole real estate process was limited to just about no research!  I didn’t know who to ask, so I didn’t seek counsel of anyone.  I went into it with blind trust.  I didn’t obtain the best mortgage for my situation.  I didn’t even live in the property for much more than a year.   When I sold it, that too was done without a lot of thought or research into the tax implications or future.

Fortunately now there are many more resources available.   And women have lots of company.  In fact, the second largest homebuying group, after married couples, is single women.  That’s why I wrote my book, You Don’t Need A Diamond To Buy Real Estate — to help single women find, buy and finance real estate.

In the end — a profit, sort of. September 2, 2008

Notwithstanding the 6-month adjustable rate mortgage, when I sold my condo about 5 years later, I ended up with a profit of about $25,000.

But that’s not the whole story.

Less than a year after I bought my condo, my job moved from the suburbs to downtown Washington, D.C.  It was a real uncomfortable commute.  I had to drive about 12 miles!  Too much for this twenty-something year-old.   Plus DC was a happening place!  Why was I living way out in the suburbs?  What had I been thinking?

I rented out my condo to a woman about 20 years older than me.  She was just getting a divorce and couldn’t believe she could call me for any maintenance issues.  Fortunately for me, she was on good terms with her ex-husband, and she called him for any property malfunctions.  I still can’t believe my luck with her!

I went on to rent a row house in Georgetown.  Now I owned investment property and could depreciate it each year on my taxes.  The only thing is it would come back to haunt me after the sale.  I had to pay capital gains taxes.  At that time they were about 30%.

A profit?  Well, sort of.