|Real Estate Information|
New Housing Starts Do Not Guarantee Aftermarket Sales
We have been studying a trend of new home buyers in the US in light of this latest housing boom. And how we should adjust our strategies to deal with it. Last year we saw 5.56 million sales of existing homes and we all know that the number of brand new homes was substantial to say the least. This incredible surge in new housing starts was due primarily to mortgage rates at all-time historical lows. And the incredible move-in deals, for instance loans with less than 1-3% down payments. 20% of our population took advantage of this by re-financing, remodeling, moving or buying a new home. 43 million Americans moved between 1999 and 2000, this trend continued even to today's date we see areas of hyper growth. On both sides of the country and yes, some in the middle too, places like; Dallas, Denver, Kansas City, Oklahoma, Nashville and Phoenix suburb areas all saw strong growth in 2003 and much of this is continuing as expected into 2004. In 1999 thru 2000 33% of renters moved and 9% of homeowners.
What does all this mean to service companies? Well it means the discretionary expenditures for home related items and services is about $6,500.00 on average. First time home-buyers spent $2500.00 less on upgrades and improvements. This of course is important to landscaping companies who deal with residential properties and consumers. We noticed it in our group of service companies, which specialize in those sectors: Window Wash Guys; The Deck Wash Guys; The Concrete Wash Guys. But were heard the same thing from pool builders, furniture sales and BBQ sales. Another interesting trend is that new homeowners are 35 percent more likely to buy a one or more new cars, at least that is what the latest surveys are showing for the years from 1999 to the current if they have purchased a new home.
We know in the carwash industry that our industry tracks new automobile sales for three years. This is because people with new cars tend to be more at attached to those automobiles (not like Jay-Lo and her latest boyfriends or Super Star Woman Teen idol and singer with her new husband for 23 hours in Vegas) as it is an extension of their personalities, because of this relationship with the automobile those owners are more likely to take a really good care of it while it is still new. As a matter of fact at the Car Wash Guys CarWashGuys.tk we have noticed that detailing inquiries for new cars outrank those for much older cars by a 5 to 1 margin. The same thing is true with new homes.
Companies like Lowes and Home Depot are showing incredible gains, Home Depot just announced it was going to build 175 new stores in the next three years spending over $1.6 billion to do it.
Why is this happening? It is happening because the pie of overall customers has increased by over 25 percent since 1999. This means that 25 percent of Americans who previously did not own a home, and now do. This is a testament to the strength of the middle class as well as the trust in the security of the ongoing endeavors of a great civilization with a strong economy and strong central bank.
However, we have also noted a slight trend in the decrease of the total number of dollars being spent by those buying into new homes. We know why this is because, the average consumer is tapped out; they have blocked cars on zero-zero down and bought homes on one to three percent down. There were also 3 million U.S. citizens who had lost their jobs in the same time. Just because a past trend has translated into a sub-trend you your sector does not mean it is always guaranteed to play out that way as there are many other factors involved. It is a lot like predicting the weather; with so many variable sometimes you just cannot know and then there are regional anomalies in some areas which buck the first trend. Think on this.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; WorldThinkTank.tk/wttbbs
Tax Free Exchanges: Watch out for the New Residence Rules
On October 22, 2004, President Bush signed tax legislation that contained a provision affecting Internal Revenue Code section 1031 (the like-kind tax-free exchange rules).Under this new provision a taxpayer who exchanges under Internal Revenue Code section 1031 into a rental house as a replacement property for a previous investor property and later converts it to his or her primary residence, is not allowed to exclude gain under the principal residence exclusion rules of Internal Revenue Code section 121, unless he/she sells the property at least five years from the date of its acquisition.
10 Important Tips to Successful Real Estate Investing
When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:1.
Where To Start In Looking For A Central Illinois Realtor
Central Illinois is an excellent location for families and businesses. Property values and local economies are growing constantly and the wide range of available properties is impressive.
How To Simplify Your Real Estate Buying/Selling Experience
Today's real estate consumer has a lot to consider during the sale or purchase of a home. Be it waiting for the right buyer/seller, mortgage rates, or the moving truck, the experience can take a bit of patience on the part of the consumer.
Real Estate Investing - The Marvel Of Home Depot And Lowes
Repairing a rental home (or your own home) use to require running down to the local hardware store or to the nearby building supply house. After several stops around town, you found everything you needed to solve your maintenance problem.
Should I Invest in Real Estate While Running an Internet Business?
Of course you should. I practice this for quite a while and I never looked back.
The Great Real Estate Bubble Quiz
You hear it asked on the radio, in the newspapers and on TV."Are we experiencing a value bubble in real estate and is itready to burst?"Do you have an answer for that question? Do you have a guess?Yes, I know the so called experts are lining up on both sides of the question.
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system.
The Real Estate Market In Spain: Making Profits Out Of Sand
The Real estate market in Spain keeps gaining momentum and is of a vital interest among overseas investors. Property prices in the country continue growing at rapid pace due to a sustainable development in many areas of the mainland and the islands.
How to Attract Clients in Residential Real Estate
Doesn't it seem like everyone you know has a friend, relative, or acquaintance that is a realtor? How could anyone, especially someone new to the industry, possibly achieve success when faced with this much competition?The answer begins to appear when you consider the following questions: How many licensed real estate agents have the talents required for success in sales? How many have been trained in effective selling techniques? How many know how to prospect effectively? How many know which questions to ask to determine the factors that are most important to each prospect's buying decision? How many take their profession seriously and are willing to put in the effort and hours that are required to build a successful business? How many of them regularly sell multiple houses per month? The 80/20 rule definitely applies to residential real estate. In fact, some statistics suggest the ratio is more like 90/10 (where 90% of home sales are made by just 10% of realtors), with the vast majority of home sales by the top 1%!So, how can a novice realtor attract clients? By building his or her credibility and relationships.
Wealth Building - An Advantage of Home Ownership
As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets.
Finding the Right Buy to Let Mortgage for Your Investment Property
Finding the right buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy-to-let property is likely to be borrowed.
Selling Property - Valuing Your Property
Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet.
Investing in Residential Real Estate: Achieving Positive Cash Flow
When investing in real estate, it is highly desirable to achieve positive cash flow on a month-to-month basis. This is true even if you are counting on property value appreciation to supply the bulk of your desired return on investment.
Real Estate Remains A Strong Investment
Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.
Do I Need A Real Estate Survey?
Getting a survey before you close on any real estate is very important.Some people actually buy real estate without having a survey done.
Vacation Homes Are Becoming A Reality For More Homeowners
Whether it's a lakefront cottage or a log cabin in the woods, a vacation home often seems to be a dream that only the wealthy can afford. But these days, you don't have to be a millionaire to own one.
Real Estate Web Design - 3 Items You Must Include on Your Site
Real estate web design requires you to do things a little bit differently because you are selling either your services or actual homes, so there must be several things present on the web page to make it user friendly. Unfortunately, many real estate web sites are poorly designed, ask visitors to supply tons of personal information before being able to view any information, don't provide enough information not to mention photos, and are all around a pain for many visitors.
Expense List for Buying a Home
There are many expenses that come with buying a home. The following list is a good example of what to expect:Down payment - A minimum of 20% of the home's purchase price is usually required for the best loan terms and to avoid paying private mortgage insurance (see below), but it's entirely possible to buy a house with a smaller down payment.
Should You Buy Real Estate Now
I have been seeing the market on fire for a long time and have started telling my friends, "don't buy now". No one can accurately determine exactly when it will happen, but it is definately on the way.
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