Real Estate Information

BIG THREE BAILOUT

Friday, December 12, 2008

by John Jacobus

There’s no parachute in this bailout!

What are the chances of GM and Chrysler repaying their bailout loan? I say about as good as buying a good GM (Government Made) car.

Our congress had oversight of Fannie Mae and Freddie Mac. They loosened up the requirements of getting a loan and permitted even sanctioned subprime loans. Do you think they can do any better running GM and Chrysler? I’m an optimist, but that’s a stretch. When the automakers come back with their plan, congress will reject it because cutting jobs and benefits and salaries won’t get votes, and politicians don’t care about profits they care about votes. Only governments can operate in the red, because they own the printing presses. When congress has control of the automaker’s boardroom, you can rest assured the auto makers will not be permitted to cut costs, thereby forcing bankruptcy or a government takeover. What do you think…US Motors or US Auto? Maybe Cry Sir Motors.

Do you find Chris Dodd and Barney Frank a little disingenuous when they are chastising the automaker’s CEOs. They practically single handedly orchestrated the financial collapse of Fannie Mae and Freddie Mac and now they have the audacity to remain in office…and even question the CEOs about the propriety of flying on a corporate jet! Come on Chris and Barney. Resign and let someone with some common sense oversee Fannie Mae and Freddie Mac and all the government bailouts.

Chris Dodd, to suggest the CEO of GM step down and get new leadership! Can you say disingenuous? How about hypocrite?

Marketing

Monday, December 08, 2008

by John Jacobus

I was watching the news the other night while some “know it all” pundits were lamblasting the big 3 auto makers about advertising while asking to borrow money from the government.

Now taking vacations and huge bonuses are way overboard, advertising is not. Without advertising, the big 3 would be the wee 3, or maybe Studebaker, Packard, and Nash.

In good times you need to advertise, in bad times you must! But where do you get the most bang for the buck? I’ll give you three big guesses. It starts with inter and ends with net. In real estate, the researchers tell us, 92% of today’s home buyers start their search for a home on the internet. Where do you think I spend about 92% of my advertising dollars? That’s right. The internet.

BULLETIN: 5.5% loans

Wednesday, December 03, 2008

by John Jacobus

Interest Rates have dropped to 5.5% on a 30 year fixed loan! The lowest since last February. The P&I (principal & interest) payment on $200,000 at 5.5% saves $128.56 per month compared to a 6.5% loan.

Or

Another way to look at this is your same payment now buys $20,000 more house! How cool is that!

Or

Now is the time to buy… unless you are a real optimist and think rates will fall further!

Despite what you’ve heard, there are still loans available to qualified borrowers. There is still a first time homebuyer tax credit of up to $7500.

What are you waiting for?

Interest rates loans first time home buyer

More bailouts?

Monday, December 01, 2008

by John Jacobus

Who is going to bail out our government (you & me) when they go broke bailing out everyone else? China? India? Iran?

Why can’t our elected officials understand that GM, Ford and Chrysler have huge millstones around their necks? Namely the government and the unions.

I never understood the reasoning that gives new companies tax abatements while not giving the same deal to existing companies. Maybe one day our President and congress on the federal level and our governor and legislators on the state level that government is merely a parasite to business. Sometimes a parasite can kill the host… and when that happens, the parasite dies too.

Please encourage your representatives to allow the auto makers to go bankrupt. Let’s allow them to restructure and compete on a level playing field for once. Let’s remove ALL taxes from them… and all companies. Why does government feel the companies/employers have to pay unemployment tax? Or worker’s comp? It’s not rocket science to see these costs simply drive up the cost of the product. To get America going loosen the chokehold of government!

Consider this New Years Resolution. Be so vocal with your representatives that they forsake their first duty (to get re-elected) and start making decisions that make sense. Hold them accountable

Columbus Bailouts car companies

Take Advantage of the market

Monday, November 24, 2008

by John Jacobus

OPPORTUNITIES ABOUND in the real estate market. If you lost a bunch of your retirement in the stock market and/or real estate decline, there is good news. A lot of people are making more than they lost in just one or two transactions. Does it take guts? Yes it does. If we allow fear to make our decisions we will horde the little bit we have left rather than “spread it on the waters” and let it come back two, three or ten fold.

Here’s what I’m talking about. This year I have helped a number of people buy property $10,000 - $40,000 less than it is worth. I do not mean less than it was worth 3 years ago, or less than the sellers wanted. I mean less than it is worth right now!

A month ago two nice five acre lots in Delaware County, Big Walnut schools, Delco Water sold for just $24,500 each! That’s about 25% of what they would have sold for 3 years ago and less than 50% of what they would sell for right now! Why didn’t I buy them? Believe me, I have been kicking myself for not being prepared to buy them. I could have turned a $50,000 profit in 60 days!

You have to be prepared to move quickly. That means CASH! Cash down payment and financing secured. Either you rob the piggy bank or access your equity line. Maybe you get five or ten friends/family that can get $10 – $20k each. Just remember, for everyone that loses money…someone else makes money.

Low prices. Low interest rates. Build equity. Save on income taxes. Is there a reason not to buy real estate! Call John today.

Buy N Bolt

Wednesday, November 19, 2008

by John Jacobus

Over the years I have helped dozens of people buy a nice little house that would make a great rental. Their plan was to live there a few months or years and then buy a second house. They would rent out the first one and live in the second one. Some even purchased a third or even a fourth home, turning all the previous ones into rentals. Quite a neat way to end up with some investment property, huh?

I’m afraid those days are over. About a year and a half ago FHA started checking to see if a buyer had obtained an owner-occupied loan in the previous 12 months. In fact, one of my clients ended up having the dubious honor of being the first to get shot down... at least as far as we know. They ended up having an owner-occupied loan on their rental and having to get an investor loan on their new residence! Now, when buying a second property and renting the first one, FHA makes a person qualify for both mortgages… not considering the income generated by the rental. WHY?

Glad you asked! It seems a lot of people who have good incomes and credit find, with the decline in property values, they are upside down on their homes. They owe more on their home than it's worth, so they buy a more modest home at the discounted prices we are experiencing and then… and then…they bolt! They quit making payments on the large expensive home and let the bank foreclose. They have a house so they figure it’s worth ruining their credit for a few years for, say $50 or $100,000.

FHA has stopped the Buyers and Bolters. The problem is, they have also stopped the legitimate buyers who want to take advantage of the market and buy a larger place while prices are down and then rent their other home until the market improves.

Leave it to our government. They can’t fix anything. They can only make things worse. Since they aren’t allowed to use common sense, they can’t determine who is legitimate and who is a bolter.

Real Estate Columbus FHA

Price per Square Footage

Wednesday, November 12, 2008

by John Jacobus

Look at the Central Ohio sales data in the link below. Ever wonder if time of year affects the value of your home? No one denies were in a slump but look at the trend for 2008! When sales prices normally go down, they are actually going up! I’ve written previously that the number of homes on the market has been decreasing and should help our prices. Here’s the proof. Thanks to The Appraisal Group for permission to send their chart which was derived from data from Columbus Board of Realtors MLS.

What can we conclude from this data?

1. The current market is obviously less than previous 3 years, but note that it is headed up and that the dip in September was still not as low as the 1^st quarter of 2008.

2. You can’t make long term predictions with month to month data but look at the long term trends. Average price in 2005 was $100.86 per square ft, 2006 was $99.21, 2007 was $96.66 and YTD is $90.99.

The data shows what I have been sensing in the market. The general trend is headed up. It probably won’t be a quick rise, but it looks like we may have seen the worst.

It may be the best time in my 36 years to invest in real estate. OPPs! I’m sorry. I can’t help myself. I am a real estate salesman, you know?

http://www.johnjacobus.com/agent_files/SF%20Price%20Trends%20Central%20Ohio.pdf

YTD Market Report

Wednesday, November 05, 2008

by John Jacobus

The January – September real estate market report is out. Here is the state of the State of Ohio real estate market as relayed in the Ohio Realtor.

Units sold are down 13.8 % YTD from 2007. Average sale price is down 7.4%. The Columbus market faired a little better than the rest of the state. Units sold are down 12.5% and average sale price is down 4.3%. Inventory in Columbus MLS is down from last year by about 12%.

Less inventory should indicate a slight increase in average sale price for the fourth quarter.

But wait. There’s more! Good news, that is. Most of Ohio and certainly the central Ohio area are way better off than most areas of the country! Also, remember that average is, well… just average. Nothing is really average. A 7’2” basketball player and a 4’10” jockey average 6 feet tall, however neither are allowed to ride the Super Himalaya at the state fair! One would get his head lobbed off and the other would be thrown out under the safety bar.

All real estate is local. Some areas of central Ohio have not seen any decrease in home values, others just a little and some a lot. One thing I know for sure…it’s a great time to buy! Want to put your 401k (or your 2-0-and1/2k) in a safer place that will actually make money…and save you some taxes? Buy some rental property.

Daylight Saving Time

Friday, October 31, 2008

by John Jacobus

Don't forget to turn your clocks back one hour this Sunday morning.

DAYLIGHT SAVING TIME FUN FACTS (and a little cynicism)

· During DST, clocks are turned forward an hour, effectively moving an hour of daylight from the morning to the evening. My wife never changes the clock in her car. She has to calculate if it is behind an hour or ahead an hour every time she wants to know the time.

· The official spelling is Daylight Saving Time, NOT Daylight SavingS Time. Nevertheless, many people feel the word savings (with an s) flows more mellifluously off the tongue. (I know that's what I thought!)

· Adding to the confusion is that the phrase Daylight Saving Time is inaccurate, since no daylight is actually saved. Daylight Shifting Time would be better, but it is not as politically desirable. Leave it to our politicians to mislead with their words. (i.e. A tax revision is actually a tax increase)

· In the U.S.,2:00 a.m. was originally chosen as the change over time because it was practical and minimized disruption. It is late enough to minimally affect bars

and restaurants, and it prevents the day from switching to yesterday, which would be confusing. (So, politicians think getting up at two in the morning to change a clock is not a disruption? The politicians chose Sunday as the time change so people would have a good excuse to miss church.)

Food for Thought

· Even a broken clock is right twice a day.

· You can tell your sweetheart her radiance makes time stand still…Your face would stop a clock doesn't work as well.

· For you folks who wake to the mellifluous call of a rooster…that's why they make shotguns because chickens don't have much use for Daylight Saving Time or Politicians

either.

Forbes.com Best Bang for Your Buck Citites

Wednesday, October 29, 2008

by John Jacobus

Exciting news!

Columbus is one of the top cities in the nation as far as real estate is concerned. If you think our market is bad… think again. Click on the link below and read the article.

http://www.forbes.com/realestate/2008/10/10/cities-buck-economy-forbeslife-cx_ab_1010realestatebest_slide_6.html?thisSpeed=15000

I am thankful I live in the Columbus area… even if the fishing stinks! I’ve been telling you for months I think we have seen the worst of it and now it is rather pleasing to see that the market has listened to little ole me and people everywhere started buying real estate and now we are on our way to recovery.

No… you don’t have to ask. I won’t run for President or serve in the new President’s cabinet. I prefer to stay right here with you and bask in your compliments and accolades…and the real estate you’re going to buy and all the referrals you’ll be sending me!

Happy Days are here again!