Real Estate Investing Links for October 14, 2009

Negative Equity

With the rise in unemployment (California hit 12.2%!), the nation is seeing a rise in residential mortgage backed securities. The Real Estate Economy Watch discusses how homeowners owing more than their property is worth are faced with less incentive to pay and dwindling options- a situation that severely limits future advancement in mortgage performance.

Most Affordable Markets

Sellsius Real Estate Blog gives us an update on the most affordable housing markets of 2009. With Indianapolis in the lead for 16 straight quarters, Sellsius also lists several other large and small cities of interest. They provide a link to gauge the affordability of your own market, meaning the percent of houses that require less than 28% of the area’s median income to purchase them.

Rising Mortgage Rates

As debate continues over the health of our nation’s economy (are we out of the recession?), mortgage rates have been bouncing between dramatic highs and lows. Investors might have noticed that as positive news is received rates go up, and upon negative news rates go down. The Real Estate Investing- The Truth Blog reports on the effect inconsistent information has on mortgage rates, and what it means to investors.

125 Home Equity Loans

The Daily Press discusses home equity loans (loans where you can receive 25% more than your home is worth.) The article cites this type of loan as a good alternative to a personal loan when financing large purchases, like your child’s education, as they tend to have lower interest rates. However they warn against the possibility of depreciation making it harder to repay the supplemented loan.

Residential Commodities

Norada Real Estate discusses commodity investing as it relates to real estate investors. Instead of investing in commodities supported by late night television, such as gold and silver, invest in wood and concrete in the rehab of residential property! Norada agrees that there is little hope of long term profit in the stock market and instead advocates rental real estate in the acquisition of positive cash flow.

Another Big Bailout?

The Hot Property section of Business Week reports on the continued faulty practices of the FHA, as another major bailout becomes a serious possibility. Lax standards such as the allowance of high loan to value loans, has tax-payers worried about the future of the housing market unless there are significant changes in lending requirements.

Fixing Up the Place

This article from shares the story of an accidental landlord’s journey through rehab of her garage apartment. She lists specific steps that helped her achieve desired results and raise the value of her rental.

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  1. Residences developed within a 5 to ten moment stroll of the middle.
    ” The easy answer to that difficult and (often) emotionally charged issue is that you need to determine how much stuff you will really need to take along to your new home. Because you have to set up your new house at new location.

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