The Sun's Financial Diary » Real estate

New Rule Opens Door for Online Real Estate Brokers

Sun — Wed, 28 May 2008 14:10:53 +0000

Original Post on The Sun's Financial Diary

New Rule Opens Door for Online Real Estate Brokers

and home buyers could save hundreds or thousands of dollars on commissions as online real estate brokers can compete with their local counterparts more effectively.

The Justice Department yesterday announced that it has reached a tentative settlement with the National Association of Realtors on an antitrust lawsuit that accused NAR of discrimination against online real estate agents by denying them the access to MLS databases. A key allegation of the lawsuit is that current NAR rules “obstructed real estate brokers who use innovative Internet-based tools to offer better services and lower costs to consumers.” And one of the “innovative” tools is rebates offered by the buyer’s agent.

According to a USA Today article which quoted Deputy Assistant Attorney General Deborah A. Garza of the Justice Department’s antitrust division as saying that the settlement

really does free brokers generally to engage in whatever they feel is the most efficient and effective way to compete.

because it can lower the cost of buying a house. The Justice Department’s antitrust division also has an online rebate calculator to help home buyers figure out how much money they can save if the buyer’s agent does offer a cash rebate, as well as a list of stats currently banning such rebate (New Jersey, unfortunately, is one of them ).

As the internet has changed our shopping experience and saved us money at the same time, the new settlement, if approved by the court, can be expected to bring fresh ideas into the way we buy/sell homes. So if you are buying a home, make sure to check if there’s any online realtor operating in your area and don’t forget to ask whether the agent you choose offers rebates.

---
Check Out These Related Articles:

Reverse Mortgage Loan: Should You Apply for One?

Sun — Wed, 15 Aug 2007 13:28:32 +0000

Original Post on The Sun's Financial Diary

Reverse Mortgage Loan: Should You Apply for One?

The following is a guest contribution from Glennice Fryson, a member of DebtManagementTalk.com, a debt management forum that share’s its revenue with their members.

Recently, there has been an awful lot of talk about Reverse Mortgage Loans. There is also an awful lot of confusion surrounding this new mortgage-lending concept. Problem is, the confusion so far is not being diminished. The very individuals targeted are vulnerable. Swindles come and go. Unfortunately, the majority of these frauds are directed at those individuals least able to protect themselves. I have a ninety-three years young mother. I try to make sure she is protected and nothing happens to her. However, she still maintains and demands her independence. Because of this, I want to become more aware of the advantages and disadvantages to the Reverse Mortgage Loan.

Let us first look at what they are and what they can do for the senior citizen. There are three types of reverse mortgage loans available:

The Home Equity Conversion Mortgage (HECM) – offered by the Department of Housing and Urban Development, the HECM is insured by the FHA. Right now, this type reverse mortgage is the most popular. Approximately ninety five percent of the targeted market is using the HECM.
The Fannie Mae Home Keeper Loan – The loan limit on this type reverse mortgage is at a higher level. Therefore, borrowers can receive more money for those unplanned expenses.
The Financial Freedom Cash Account Loan – Available to those senior citizens who own homes valued at more than $600,000. Since there is no maximum limit to these loans, the homeowners with the most expensive homes benefit from the FFCAL loan.

Before rushing into either of the three offered, take some time to consider which is more advantageous for you needs. Not everyone will need to consider a reverse mortgage loan. Generally, the reverse mortgage loan is recommended for those individuals who may require assistance on a regular basis due to long-term health issues. Or, those individuals who will need to at some point move from their home into an assisted living facility. Consider a reverse mortgage loan only if your home is the only major asset you have at your disposal in a time of need.

Closing cost on a RML can reach or exceed five percent of the total mortgage. Using the home equity over time will decrease the inheritance for your remaining family. If you are the only borrower, remember the loan will not become due as long as you are residing in the home. However, if you must move into an assisted living facility or some other residence for a year or longer, the loan becomes due. Remember, one of the main reasons some take advantage of these loans is to provide in home care when needed.

These loans do not close as quickly as others. The period between the initiation of the process and closing usually is somewhere between forty five to ninety days. Issues regarding maintenance needs and any questions based on discovered title issues will slow the process.

Before beginning the loan process to accept a reverse mortgage, do some investigation. The more you are aware of, the better. There are numerous issues to be considered. Make sure you have reviewed and are aware of all advantages and disadvantages to a reverse mortgage loan.

Most individuals purchase property as an investment with hopes of leaving something to their heirs. Tying up all equity in a reverse mortgage loan can greatly reduce the amount left to your family. There are quite a few resources available for any questions you may have and for those you may not have considered. The National Reverse Mortgage Lenders Association offers publications and a website is available. Contact this association by dialing (866) 264-4466 or at www.reversemortgage.org.

AARP offers Home Made Money: A brochure providing a detailed overview of the reverse mortgage with a calculator. Contact the AARP by calling (800) 424-3410 or at www.aarp.org.

The Financing Long Term Care is a website established to provide facts, education and recommendations your family may need to consider. Review their information and recommendations at www.financinglongtermcare.umn.edu.

In addition, for free programs to help seniors identify public assistance available and where this information can be obtained, the Benefits Checkup Website is available at www.benefitscheckup.org.

Please remember, educated consumers are an awesome force. When provided with the resources necessary, you are guaranteed your money will work for you and your family will reap the rewards as planned.

---
Check Out These Related Articles:

Bank of America Introduces No Fee Mortgage

Sun — Tue, 08 May 2007 19:16:06 +0000

Original Post on The Sun's Financial Diary

Bank of America Introduces No Fee Mortgage

Yesterday, Bank of America introduced its no-fee mortgage program. According to their website, the new program No Fee Mortgage PLUS, which is available to home-buyers nationwide, includes the following features:

No Application Fee
No Closing Fees
No Private Mortgage Insurance Required
Close-On-Time Guarantee
Best Value Guarantee

According to a CNNMoney report yesterday, BoA also “won’t charge for private mortgage insurance - often required for borrowers who put less than 20 percent down.” However, the no-fee program is only applicable to buying a home, not refinancing.

While it’s good to have a loan without all the fees, they have to be put in the context of the overall costs of buying a home and the dominant factor is not the fees, but the interest rate of the loan. So how does BoA’s rate compare with its rivals? I run a quick check on Bankrate.com and found that for a $250K loan, the rate of 30-year fixed mortgage from BoA, currently at 6.625%, is in fact the highest dozens of banks offering the same product in the area close to where we live. The lowest rate is 5.375% from VirtualBank. That works out about $200 difference in monthly mortgage payment! During the lifetime of the loan, the total interests for the BoA loan is $326,279.86 while the interests for VirtualBank loan is $253,974.11. Can the savings on fees offset the $72,306 more on interests?

I don’t see BoA become my first of choice of mortgage products, unless their rates are really competitive. Fee isn’t the only factor to consider when shopping for a mortgage.

---
Check Out These Related Articles:

Guest Article: Rare Buying Opportunity for Real Estate Investors

Sun — Fri, 13 Apr 2007 13:18:40 +0000

Original Post on The Sun's Financial Diary

Guest Article: Rare Buying Opportunity for Real Estate Investors

Last week, I posted a piece on investing in real estate through REIT. The following guest article is on the same topic and is written by Tom Kerr from MortgageLoan.com.

Savvy stock market professionals know that the best time to buy is when everyone else is selling. The same holds true for real estate investing. A strategic mortgage refinance plan can help you take advantage of opportunities in the current buyer’s market by freeing up the money needed to snag property at bargain prices.

Going against the trend can make you a winner; but it takes tremendous courage to step up and buy when others are running for the exits. The philosophy of jumping on the wagon while others are hopping off is referred to as “contrarian,�? because it runs contrary to conventional wisdom.

But markets function because of the simple principle of supply and demand. Those who have enough cash to buy while others are desperate to sell, come out on top in the long run. The easiest way to manifest cash in the real estate business is through a mortgage refinance of property that can take advantage of attractive rates and leveraging of home equity.

Home refinance for a golden opportunity

Many homeowners used adjustable-rate mortgages or interest-only loans to buy into the last real estate bull market. Now they face substantial increases in their monthly payments. At the same time, the value of their homes has plummeted. They’re stuck between a rock and a hard place, and many are defaulting on their mortgages. Their bursting bubble represents a golden opportunity for foreclosure buyers; but it’s impossible to capitalize on bargain basement prices unless you have a source of funds.

Refinancing can free up cash and put it to work at times like these, for high yield returns. Even those with no professional experience with real estate investment can tap the equity in their homes through mortgage refinancing or second mortgages. Then, they can buy houses that others are frantic to sell, reaping the rewards of low prices and built-in equity. Such investments can pay off in another contrarian way - as leased property - because the demand for rentals increases during hot foreclosure markets.

Eventually, we’ll enter another economic cycle, and a fresh bull market in real estate will ensue. Those who enjoy making money by taking the path less traveled will sell some of their holdings, convert a portion of their real estate portfolio into cash for a significant profit, pay off their second mortgage, and giggle all the way to the bank.

---
Check Out These Related Articles:

Investment Choice: REIT

Sun — Fri, 06 Apr 2007 15:22:42 +0000

Original Post on The Sun's Financial Diary

Investment Choice: REIT

In my previous discussions on building portfolios with ETFs (the last segment can be found here), we have seen REIT (real estate investment trusts) as an ingredient in several of the model portfolios. In fact, if you check some recommended asset allocations (for example, this post on asset allocation at About.com), you will likely to find REIT in the mix. Real estate, itself as one of the major asset classes (including cash, bonds, stocks, currency, natural resources, and precious metals), increasingly plays a key role in building a well diversified portfolio. For myself, I have a small portion invested in Third Avenue Real Estate Value Fund (TAREX), which happens to be my third best mutual fund investment in terms of returns, thanks to the real estate boom in the early years of the decade (following chart shows the performances of DJ Equity REIT Total Return Index, DJ Industrial Average, and S&P 500 since 2001).

What is REIT

REIT, according to Wikipedia, is

a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

In other words, REIT is a real estate company that invests in residential and/or commercial real estate (office buildings and shopping malls). Since such investment activities are generally beyond the reach of individual investors, the company issues publicly traded stocks so retail investors can also invest in real estate by holding their stocks. There are mainly three kinds of REIT:

Equity REITs: Equity REITs invest in and own properties.
Mortgage REITs: Mortgage REITs deal in investment and ownership of property mortgages.
Hybrid REITs: Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages.

Why invest in REIT

What role does REIT play in a portfolio? The answer is two-fold: income and diversification.

From the definition, for a company to gain REIT status, it must pay at least 90% of its taxable income as dividends to its shareholders. Thus, when investing in REIT, investors not only can expect appreciation of their investment principles, but also hefty dividend distributions. In this sense, REITs are dividend-paying stocks that will provide a stream of income (thus, it makes sense to REIT in tax sheltered account such as IRA). Besides the income part, an Ibbotson Associates study on investor returns from 1972 to 2004 shows the decline in correlation between REIT and other asset classes. According to the study, adding REIT to a portfolio can reduce the risk and/or boost the return:

T-bills 10%, Stocks 50%, Bonds 40%: Return 10.9%, Risk 10.6%
T-bills 10%, Stocks 45%, Bonds 35%, REIT 10%: Return 11.2%, Risk 10.3%
T-bills 10%, Stocks 40%, Bonds 3%, REIT 20%: Return 11.6%, Risk 10.1%

A 2004 article on Invstopedia, The Impact of Interest Rates on Real Estate Investment Trusts by David Harper, also shows the negative correlation between interest rates and REIT returns.

How to invest in REIT

Investors interested in REIT have several choices to participate: stocks, mutual funds, and exchange traded funds (ETFs).

Stocks

The following REIT stocks are members of S&P 500 index, among them Boston Properties (BXP), Equity Residential (EQR), Plum Creek Timber (PCL), and ProLogis (PLD) are available at ComputerShares for direct purchases.

AIMCO (AIV)
Archstone-Smith (ASN)
AvalonBay Communities (AVB)
Boston Properties (BXP)
Developers Diversified Realty Corporation (DDR)
Equity Residential (EQR)
Host Hotels & Resorts (HST)
Kimco Realty Corporation (KIM)
Plum Creek Timber, Inc. (PCL)
ProLogis (PLD)
Public Storage, Inc. (PSA)
Simon Property Group (SPG)
Vornado Realty Trust (VNO)

Mutual funds

There are more than 100 REIT mutual funds (including different share classes), thus choosing which one to invest depends on many factors on the investor’s objective, risk tolerance, return expectation, etc. Most of REIT funds are actively managed, meaning they usually charge higher fees. If you can come up with the $3,000 initial investment, Vanguard REIT Index (VGSIX) will be better choice. With a rock-bottom 0.21% expense ratio and 5-year annualized return of 21.62%, the fund is hard to beat. The following are some REIT mutual funds:

Alpine Realty Income and Growth Fund (AIGYX)
American Century Real Estate Investments (REACX)
CGM Realty (CGMRX)
Columbia Real Estate Equity Z (CREEX)
Fidelity Real Estate Investment (FRESX)
Third Avenue Real Estate Fund (TAREX)
T. Rowe Price Real Estate (TRREX)
Vanguard REIT Index (VGSIX)

ETFs

In addition to those REIT ETFs mentioned in the model portfolio series, there are some other ETF choices out there. Be aware, however, that investing with ETFs involves additional costs as ETFs are traded like stocks.

iShares Dow Jones US Real Estate (IYR)
iShares Cohen & Steers Realty Majors (ICF)
iShares Dow Jones US Home Construction (ITB)
Vanguard REIT Index ETF (VNQ)
SPDR DJ Wilshire Intl Real Estate (RWX)
DJ Wilshire REIT ETF (RWR)
UltraShort Real Estate ProShares (SRS)
Ultra Real Estate ProShares (URE)

---
Check Out These Related Articles:

Have a Million?

Sun — Wed, 01 Nov 2006 22:58:28 +0000

Original Post on The Sun's Financial Diary

Have a Million?

How about replaceing your existing house with one of these (from CNNMoney.com)?

Boulder, Colorado: $1.199M, 6 bedrooms, 4 baths, and 6387 sq ft.

Savannah, Georgia: $1.35M, 2 and 3 halfs baths, and 4778 sq ft.

Cranston, Rhode Island: $1.6M, 5 bedrooms, 3 and 2 halfs baths, and 4243 sq ft.

Oak Park, Illinois: $1.55M, 5 bedrooms, 3.5 baths.

Santa Fe, New Mexico: $1.02M, 5 bedrooms, 5 baths, and 3400 sq ft.

Bonsall, California: $1.587M, 4 bedrooms, 3.5 baths, and 4300 sq ft.

Plantation, Florida: $1.049M, 5 bedrooms, 3.5 baths, and 4700 sq ft.

---
Check Out These Related Articles:

How Safe is Your City? Here’s the Best, Worst, and in Between

Sun — Mon, 30 Oct 2006 15:16:51 +0000

Original Post on The Sun's Financial Diary

How Safe is Your City? Here’s the Best, Worst, and in Between

When buying real estate, everybody knows "location, location, location." However, the difference between locations shouldn't just be neighborhoods in the city, the city itself should also be on your mind. You certainly don't want to live in one of those "most dangerous" cities, even though you may find a perfect location in the city.

Morgan Quitno Press, a private research and publishing company specializing in state and city reference books, just released its 13th annual "City Crime Rankings." This year's report, compiled with FBI crime data of 2004 and 2005, put St. Louis, MI (did they just win the world series?), as the most dangerous city in the nation, followed by Detroit, MI, Flint, MI, Compton, CA and Camden, NJ. And the honor of the safest goes to Brick, NJ, followed by Amherst, NY, and Mission Viejo, CA.

In the past couple of years (2004 and 2005), Camden, NJ, which is about 60 miles from where we live and also has a Rutgers University campus in town, topped the list of most dangerous cities and because of the ranking, the campus saw a sharp decline in enrollment. Officials of the city complained that the list failed to recognize the improvement made by the city and left people with very bad impression. This year, Camden is off the hook, though not by far.

So how safe is your city? Here's the complete list from WCBS:

    1. Brick, N.J.
    2. Amherst, N.Y.
    3. Mission Viejo, Calif.
    4. Newton, Mass.
    5. Troy, Mich.
    6. Colonie, N.Y.
    7. Irvine, Calif.
    8. Cary, N.C.
    9. Greece, N.Y.
    10. Coral Springs, Fla.
    11. Thousand Oaks, Calif.
    12. Orem, Utah
    13. Round Rock, Texas
    14. Dover, N.J.
    15. Lake Forest, Calif.
    16. Sterling Heights, Mich.
    17. Simi Valley, Calif.
    18. Roswell, Ga.
    19. Lee's Summit, Mo.
    20. Broken Arrow, Okla.
    21. Chino Hills, Calif.
    22. Gilbert, Ariz.
    23. Edison, N.J.
    24. Cranston, R.I.
    25. Port St. Lucie, Fla.
    26. Sandy, Utah
    27. Nashua, N.H.
    28. Danbury, Conn.
    29. Huntington Beach, Calif.
    30. Orange, Calif.
    31. Hamilton, N.J.
    32. Parma, Ohio
    33. Overland Park, Kan.
    34. Santa Clarita, Calif.
    35. Stamford, Conn.
    36. Cheektowaga, N.Y.
    37. Livonia, Mich.
    38. Sunnyvale, Calif.
    39. Murrieta, Calif.
    40. Canton, Mich.
    41. Plano, Texas
    42. Warwick, R.I.
    43. Torrance, Calif.
    44. Clifton, N.J.
    44. Newport Beach, Calif.
    46. Woodbridge, N.J.
    47. Fargo, N.D.
    48. Norman, Okla.
    49. Olathe, Kan.
    50. Boca Raton, Fla.
    51. Livermore, Calif.
    52. Centennial, Colo.
    53. Fremont, Calif.
    54. Clinton, Mich.
    55. Vacaville, Calif.
    56. Tracy, Calif.
    57. Bellevue, Wash.
    58. Carlsbad, Calif.
    59. Pembroke Pines, Fla.
    60. Farmington Hills, Mich.
    61. Richardson, Texas
    62. Rancho Cucamon., Calif.
    63. Boulder, Colo.
    64. McKinney, Texas
    65. Rochester, Minn.
    66. Beaverton, Ore.
    67. Santa Clara, Calif.
    68. Daly City, Calif.
    69. Lewisville, Texas
    70. Napa, Calif.
    71. Burbank, Calif.
    72. Arvada, Colo.
    73. Alexandria, Va.
    74. Virginia Beach, Va.
    75. Ann Arbor, Mich.
    76. Quincy, Mass.
    77. Glendale, Calif.
    78. Ventura, Calif.
    79. Provo, Utah
    80. Fullerton, Calif.
    81. Lawrence, Kan.
    82. Scottsdale, Ariz.
    83. Carrollton, Texas
    84. Hillsboro, Ore.
    85. Somerville, Mass.
    86. Kenosha, Wis.
    87. Davie, Fla.
    88. Chino, Calif.
    89. Sunrise, Fla.
    90. Cape Coral, Fla.
    91. Henderson, Nev.
    92. Billings, Mont.
    93. Cedar Rapids, Iowa
    94. Plantation, Fla.
    95. Costa Mesa, Calif.
    96. San Mateo, Calif.
    97. Garland, Texas
    98. Madison, Wis.
    99. Corona, Calif.
    100. Clovis, Calif.
    101. Yonkers, N.Y.
    102. Alhambra, Calif.
    103. Buena Park, Calif.
    104. Odessa, Texas
    105. Chandler, Ariz.
    106. Norwalk, Conn.
    107. Upper Darby, Pa.
    108. Peoria, Ariz.
    109. Westminster, Calif.
    110. Roseville, Calif.
    111. Lakewood, Calif.
    112. San Jose, Calif.
    113. Honolulu, Hawaii
    114. El Paso, Texas
    115. Santa Barbara, Calif.
    116. Temecula, Calif.
    117. Cambridge, Mass.
    118. Pasadena, Texas
    119. Brownsville, Texas
    120. Boise, Idaho
    121. Garden Grove, Calif.
    122. Mesquite, Texas
    123. Westminster, Colo.
    124. Manchester, N.H.
    125. Whittier, Calif.
    126. Westland, Mich.
    127. McAllen, Texas
    128. Lincoln, Neb.
    129. Pasadena, Calif.
    130. Columbia, Mo.
    131. Midland, Texas
    132. Chesapeake, Va.
    133. Santa Rosa, Calif.
    134. Spokane Valley, Wash.
    135. Anaheim, Calif.
    136. Athens-Clarke, Ga.
    137. Green Bay, Wis.
    138. Irving, Texas
    139. Fort Collins, Colo.
    140. Escondido, Calif.
    141. Miramar, Fla.
    142. Concord, Calif.
    143. West Covina, Calif.
    144. Hampton, Va.
    145. New York City
    146. Denton, Texas
    147. Palm Bay, Fla.
    148. Sioux City, Iowa
    149. Sioux Falls, S.D.
    150. Thornton, Colo.
    151. Salem, Ore.
    152. Hialeah, Fla.
    153. Baldwin Park, Calif.
    154. Erie, Pa.
    155. San Angelo, Texas
    156. Oxnard, Calif.
    157. Oceanside, Calif.
    158. Austin, Texas
    159. Evansville, Ind.
    160. Lakeland, Fla.
    161. Laredo, Texas
    162. Raleigh, N.C.
    163. El Monte, Calif.
    164. Waterbury, Conn.
    165. Vista, Calif.
    166. Murfreesboro, Tenn.
    167. Fontana, Calif.
    168. Grand Prairie, Texas
    169. Fort Wayne, Ind.
    170. Santa Ana, Calif.
    171. Santa Monica, Calif.
    172. Lexington, Ky.
    173. Colorado Springs, Colo.
    174. Suffolk, Va.
    175. Hollywood, Fla.
    176. Eugene, Ore.
    177. Norwalk, Calif.
    178. Santa Maria, Calif.
    179. Downey, Calif.
    180. Abilene, Texas
    181. Chula Vista, Calif.
    182. Ogden, Utah
    183. Melbourne, Fla.
    184. Clarksville, Tenn.
    185. Sparks, Nev.
    186. San Diego, Calif.
    187. Carson, Calif.
    188. Vancouver, Wash.
    189. Greeley, Colo.
    190. Springfield, Mo.
    191. Mesa, Ariz.
    192. Moreno Valley, Calif.
    193. Tyler, Texas
    194. Dearborn, Mich.
    195. Des Moines, Iowa
    196. Lowell, Mass.
    197. San Antonio
    198. Corpus Christi, Texas
    199. El Cajon, Calif.
    200. Salinas, Calif.
    201. Fairfield, Calif.
    202. Lakewood, Colo.
    203. Redding, Calif.
    204. Ontario, Calif.
    205. South Gate, Calif.
    206. Topeka, Kan.
    207. Arlington, Texas
    208. Lawton, Okla.
    209. Riverside, Calif.
    210. Antioch, Calif.
    211. Long Beach, Calif.
    212. Anchorage, Alaska
    213. West Valley, Utah
    214. Hawthorne, Calif.
    215. Yuma, Ariz.
    216. Louisville, Ky.
    217. Omaha, Neb.
    218. Clearwater, Fla.
    219. Independence, Mo.
    220. Spokane, Wash.
    221. Reno, Nev.
    222. Grand Rapids, Mich.
    223. Pueblo, Colo.
    224. Hayward, Calif.
    225. Tuscaloosa, Ala.
    226. Berkeley, Calif.
    227. Las Cruces, N.M.
    228. Mobile, Ala.
    229. Worcester, Mass.
    230. Palmdale, Calif.
    231. Modesto, Calif.
    232. Wichita Falls, Texas
    233. Lubbock, Texas
    234. San Leandro, Calif.
    235. Amarillo, Texas
    236. Bakersfield, Calif.
    237. Columbus, Ga.
    238. Gainesville, Fla.
    239. Gresham, Ore.
    240. Charleston, S.C.
    241. Tempe, Ariz.
    242. Lynn, Mass.
    243. Lafayette, La.
    244. Newport News, Va.
    245. High Point, N.C.
    246. Fort Worth, Texas
    247. Salt Lake City, Utah
    248. Jacksonville, Fla.
    249. Portland, Ore.
    250. Los Angeles
    251. Victorville, Calif.
    252. Bellflower, Calif.
    253. Glendale, Ariz.
    254. New Bedford, Mass.
    255. Pomona, Calif.
    256. Racine, Wis.
    257. Aurora, Colo.
    258. Elizabeth, N.J.
    259. Rialto, Calif.
    260. Savannah, Ga.
    261. Paterson, N.J.
    262. Seattle
    263. Albany, Ga.
    264. Southfield, Mich.
    265. Lancaster, Calif.
    266. Waco, Texas
    267. Fresno, Calif.
    268. Killeen, Texas
    269. Greensboro, N.C.
    270. San Francisco
    271. Fort Lauderdale, Fla.
    272. Durham, N.C.
    273. Fort Smith, Ark.
    274. Tallahassee, Fla.
    275. South Bend, Ind.
    276. Lansing, Mich.
    277. Federal Way, Wash.
    278. Huntsville, Ala.
    279. Albuquerque, N.M.
    280. Visalia, Calif.
    281. Winston-Salem, N.C.
    282. Providence, R.I.
    283. Everett, Wash.
    284. Davenport, Iowa
    285. Hammond, Ind.
    286. Roanoke, Va.
    287. Norfolk, Va.
    288. Fayetteville, N.C.
    289. Kent, Wash.
    290. Akron, Ohio
    291. St. Paul, Minn.
    292. Wilmington, N.C.
    293. Portsmouth, Va.
    294. Oklahoma City
    295. Columbia, S.C.
    296. Canton, Ohio
    297. Knoxville, Tenn.
    298. Montgomery, Ala.
    299. Allentown, Pa.
    300. North Las Vegas, Nev.
    301. Beaumont, Texas
    302. Las Vegas, Nev.
    303. Denver
    304. Yakima, Wash.
    305. Syracuse, N.Y.
    306. Longview, Texas
    307. Pittsburgh
    308. Tucson, Ariz.
    309. Bridgeport, Conn.
    310. Inglewood, Calif.
    311. Pompano Beach, Fla.
    312. Albany, N.Y.
    313. Phoenix
    314. Boston
    315. Chattanooga, Tenn.
    316. Tampa, Fla.
    317. Jersey City, N.J.
    318. Milwaukee
    319. Miami Beach, Fla.
    320. Indianapolis, Ind.
    321. Shreveport, La.
    322. Sacramento, Calif.
    323. St. Petersburg, Fla.
    324. Tacoma, Wash.
    325. Houston
    326. Columbus, Ohio
    327. Miami
    328. Baton Rouge, La.
    329. Charlotte, N.C.
    330. Jackson, Miss.
    331. Toledo, Ohio
    332. Macon, Ga.
    333. Nashville, Tenn.
    334. Rochester, N.Y.
    335. Tulsa, Okla.
    336. Stockton, Calif.
    337. Hartford, Conn.
    338. Dallas
    339. Miami Gardens, Fla.
    340. Buffalo, N.Y.
    341. Springfield, Mass.
    342. Kansas City, Kan.
    343. Philadelphia
    344. West Palm Beach, Fla.
    345. Minneapolis
    346. Dayton, Ohio
    347. Orlando, Fla.
    348. San Bernardino, Calif.
    349. Little Rock, Ark.
    350. Newark, N.J.
    351. Reading, Pa.
    352. North Charleston, S.C.
    353. Washington
    354. Cincinnati
    355. Atlanta
    356. Kansas City, Mo.
    357. Richmond, Va.
    358. Trenton, N.J.
    359. Memphis, Tenn.
    360. Baltimore
    361. Richmond, Calif.
    362. Gary, Ind.
    363. Youngstown, Ohio
    364. Oakland, Calif.
    365. Cleveland
    366. Birmingham, Ala.
    367. Camden, N.J.
    368. Compton, Calif.
    369. Flint, Mich.
    370. Detroit
    371. St. Louis

---
Check Out These Related Articles:

House for Sale: Then $639,900, Now $624,900

Sun — Sun, 29 Oct 2006 01:10:30 +0000

Original Post on The Sun's Financial Diary

House for Sale: Then $639,900, Now $624,900

Early last month, we saw an open house sign nearby. We were not really shopping for a new house back then (even now), but since it was in the area we like, we decided to take a tour. The house, built in 1998, has 4 bedrooms, 2.5 bathrooms, 2 car garage, and a unfinished basement. The total living space is a little more than 2600 square feet and the property covers 0.37 acre.

And the price?

$639,900 and it's for-sale-by-owner!

The overall feeling after the tour could be best described by one word "overpriced." The house is being sold by the owner, it has no study room, no balcony/deck, the basement isn't finished, and, finanlly, the house isn't big. For all of thse, $639,900 was way too high.

We left the house without showing much interest, though we still left our phone number. Later on, almost every weekend we went out, we saw their open house sign, sometims miles aways on the main highway. Apparently, nothing happened. Then one night early this month, we got a call the owner, asking if we were still interested in the house. Interest, yes, but not at price level. Today, out of curiosity, I logged onto the website they provided and found that the sell price has been reduced to $624,900, $15,00 less than what they asked for two months ago.

Frankly, I have to say it's a nice house in a nice neighborhood, but not good enough for the $624,900 price tag. I also feel there is some disconnection between the owner's perception of the market and the reality. With house prices falling by the month every where, this seller did slash the asking price by $15K, but since the starting price was too high, the reduction didn't make much difference, in my opinion. In fact, a quick check of other houses in this area that are currently on the market show that prices for houses with similar conditions (size, age, rooms) range from $560K to $610K, even some houses still underconstruction have lower prices than what this seller is asking for, and this has me wonder what makes the seller so confident about the price of the house, which has been on the market for more than two months already.

---
Check Out These Related Articles:

NAR Study Found Baby Boomers Face Uncertain Future

Sun — Mon, 16 Oct 2006 20:22:59 +0000

Original Post on The Sun's Financial Diary

NAR Study Found Baby Boomers Face Uncertain Future

A study report released today by National Association of Realtors found that a majority of the 78 million baby boomers, those born between 1946 and 1964, face uncertainties when it comes how to retire. The study was to find what kind of homes baby boomers will buy when they approach retirement. However, it also shows that their financial readiness not only impact the size of houses they will purchase, but also their retirement ages. Unfortunately, according to the study, most people were unsure of their financial future, with 75 percent saying they are not financially prepared for retirement and many expressing anxiety about their ability to retire.

many of them may work five or 10 years beyond the traditional retirement age of 65

Not just because they are healthier, but they have to.

Some other key findings in the study include:

For those baby boomers that married later and had children at a later age, they probably will continue to work beyond the traditional retirement age;
One-third of baby boomers expect to go back and forth between periods of work and periods of leisure, and another 35 percent want to work at least part-time or start a business;
The median age at which baby boomers expect to stop working is 70, but 27 percent say they never intend to stop working;
Most boomers live in two-income households, with a median income in 2005 of $64,700, which is 31 percent higher than the median for all households.
For baby boomers earning $100,000 or more, more than 9 in 10 are homeowners. Among middle-income boomer homeowners, home equity accounts for fully half of their net worth. However, 19 percent are renters, 37 percent say they have just enough to make ends meet and 17 percent say they are having financial difficulty.
A quarter of baby boomers own one or more other kinds of real estate in addition to a primary residence.
Almost one in four boomer households have a net worth of $500,000 or more and 97 percent of them are homeowners. More than a third expect to help children or grandchildren with a downpayment on a home.
Forty-two percent of survey respondents would like to retire in the South, 32 percent in the West, 15 percent in the Midwest and 12 percent in the Northeast.
Although most boomers are married couples and 27 percent have children under the age of 18, nearly two out of five baby boom households are nontraditional households, most of which are headed by women.

Click here for more details about the report.

---
Check Out These Related Articles:

How much Property Taxes Do You Pay?

Sun — Thu, 05 Oct 2006 15:58:04 +0000

Original Post on The Sun's Financial Diary

How much Property Taxes Do You Pay?

According to The Tax Foundation, New York and New Jersey top the list of median property taxes in the nation. The 15 counties with highest property taxes are:

Westchester County, NY - $7,337
Nassau County, NY - $7,025
Hunterdon County, NJ - $6,988
Bergen County, NJ - $6,846
Essex County, NJ - $6,642
Rockland County, NY - $6,527
Morris County, NJ - $6,478
Somerset County, NJ - $6,465
Putnam County, NY - $6,335
Union County, NJ - $6,312
Passaic County, NJ - $6,210
Suffolk County, NY - $6,131
Monmouth County, NJ - $6,015
Hudson County, NJ - $5,472
Lake County, IL - $5,393

---
Check Out These Related Articles:

An Unwelcome Byproduct Of The Housing Boom

Sun — Tue, 08 Aug 2006 19:53:00 +0000

Original Post on The Sun's Financial Diary

An Unwelcome Byproduct Of The Housing Boom

And it is the rise of property tax.

Today’s New York Times article offered a glimpse on how personal income increases since 2002 were outpaced by the rise of property tax. According to the article, from 2000 to 2004, personal income went up 16 percent nationwide, while property tax soared 26 percent. In the tri-state area (NJ, NY, and CT), property tax grew two to three times faster than the gain in personal income. This, however, was not the case ten years ago during the internet boom of the late ‘90s. From 1995 to 2000, personal income was up 33 percent, topping property tax increases during the same period by 19 percentage points.

As the stock market cooled off in 2001, municipalities throughout the country felt the pressure as revenue from income and sales taxes sharply lowered. For most local governments, property tax, commercial and residential, became the main source to fund the municipal and county governments and the public schools, and the stable period of property tax increases residents experienced in the late ‘90s came to an end. On the other hand, while many people in the tri-state area saw their house values doubled or even tripled in recent years, a steep rise in property tax has become a burden, especially for those who bought their houses at the peak of the real estate boom.

In New Jersey, which already has the nation’s highest property tax rate, situation is even worse. After 2000, the New Jersey’s government employment rate went up twice as faster as the national average, and that in turn dramatically drove up property tax while personal income kept pace with other areas in the nation. According to the Times’ article, in Bergen County, NJ, property tax jumped 26 percent from 2000 to 2004, three times the growth rate of income. The sharpest rise happened in Somerset County, NJ, the county I am living in, where a 41 percent jump in property tax is more than eight times of the income growth rate.

And the solutions?

“Sell my house and move out of New Jersey.”

---
Check Out These Related Articles: