July 26, 2009

U.S. apartment vacancies near historic high: report – Yahoo! News

U.S. apartment vacancies near historic high: report – Yahoo! News

The U.S. recession has taken a toll on the U.S. apartment market, which largely relies on employment growth to fuel demand. Its largest tenant group, 18- to 24-year-olds, has been hardest hit by rising unemployment.

Meanwhile, the apartment buildings sector has led all commercial real estate categories on loan defaults. Second-quarter asking rent fell 0.7 percent from a year earlier to $1,040 a month, and 0.6 percent from the prior quarter, the largest single quarterly decline since Reis began tracking quarterly data in 1999. When free months of rent and other incentives landlords are using to lure tenants are factored in, effective rent was down 1.9 percent from the prior year and 0.9 percent from the first quarter to $975, Reis said. “If you’re a landlord right now at least you’re recognizing that things are tough,” Calanog said.

To maintain occupancy, many landlords, including Equity Residential, Apartment Investment and Management Co, AvalonBay Communities Inc and Mid-America Apartment Communities Inc, have sacrificed rental income and boosted concessions. For example, in New York, the largest U.S. apartment market, vacancies fell 0.5 percentage points to 2.9 percent, despite a 1.7 percent decrease in rent to $2,679 compared with just the prior quarter and a 4 percent fall compared with last year. “It’s very clear there’s some leasing going on, but it’s coming at the cost of a whole lot of concessions offered,” he said.

In other areas, such as Las Vegas, San Francisco and San Jose, California, effective rents dropped more than 2 percent from the prior quarter. Nationally, the picture may grow worse as the year progresses as Reis expects more than 100,000 units from new construction to come onto the market by the end of the year. Some 47,000 units have already come on line this year.

“With general expectations of an economic recovery pushed back to early 2010 at the earliest, it seems likely that apartments will have to endure a few more quarters of distress, lower rents and higher vacancies,” Calanog said.

Thanks to Burbed reader Herve for sending this in. I hate to say this though, but this is very misleading. You see, landlords haven’t really dropped the rent by 2% due to the poor economy here – they’re just dropping to rent to grab marketshare. As we all know, the #1 metric of success in business is marketshare and mindshare – this is Silicon Valley after all.

So please don’t be fooled. You may be thinking “lack of profit = bad” – but that’s last century thinking. In this New New New Economy, the paradigm has shifted. This would be even better if the landlords took on a big stack of debt to help gain even more marketshare! Debt = wealth!

Comments (17) -- Posted by: burbed @ 5:23 am






July 25, 2009

Stop Sitting on Your Assets: How to Safely Leverage the Equity Trapped in Your Home and Transform It Into a Constant Flow of Wealth and Security

It’s Saturday and that means it’s time for another Burbed book recommendation!

Stop Sitting on Your Assets: How to Safely Leverage the Equity Trapped in Your Home and Transform It Into a Constant Flow of Wealth and Security

FROM THE BACK COVER: Are you caught up in the financial thinking of the last century? That’s when we learned to buy a home and pay it off as quickly as possible. It made sense in the conditions that existed back then. It doesn’t make sense today. How would you like to: 1) Safely leverage and compound assets you didn’t realize you had? 2) Become your own bank and build family wealth? 3) Pile up stock market gains, but never take the losses? 4) Lock-in a rich, secure and carefree retirement? 5) Transform the IRS into your wealth-building partner? 6) Create real wealth, empowering you to help others? 7) Get to your existing retirement funds with little or no taxes? 8) Leave a fortune to your heirs? STOP SITTING ON YOUR ASSETS make these strategies crystal clear — and you can apply them with security and ease. If you own a home, you owe it to yourself to know about today’s new reality: You are sitting on a potential fortune that can safely and confidently be put to work to build a massively abundant financial future. A future so rich that — before STOP SITTING ON YOUR ASSETS — could have only existed in your dreams.

Heh. I love the pun. Assets. Heh.

It’s another Saturday, and another book that pleads with you to load up on debt. There are so many books that recommend you do this, that it must be a solid strategy that you should follow – otherwise why would these authors write them, why would publishes publish them, and why would consumers snap them up?

Looking through some of the other reviews, apparently it has some great tips on how to co-mingle your life insurance and your mortgage together. Intrigued? Buy it and retire wealthy!

And when you do become wealthy, please help this site out, click this link to learn more!

Comments (2) -- Posted by: burbed @ 5:01 am

July 23, 2009

Can someone help Jennifer Hu with Century 21 Su Casa and Mariposa Mortgage?

Kulwinder Singh, Su Casa, and the $2,500 condo | SF Bay Area Home Price and Mortgage Insanity Blog – Burbed.com
Jennifer Hu Says:
July 22nd, 2009 at 2:25 am

A similar situation happened to me. I was tricked into “having a house under my name for a few months”. And all of a sudden found out I owned 1 house and 1 triplex in Stockton. I never signed or saw any documents and now they have gone under forclosure. The people who scammed me were Simon Dante Lopez Jr. from Mariposa Mortgage and Pete and Anna Flores from Centry21 Su Casa. They lied about my income, and also said i worked for one of the centry21 Su Casa “fake business” like a trucking company! Where can we get help and justice! Now my credit is ruined and I have Tax issues. If there is anybody out there to help, please reply if anybody can help me I’d appreciate any advice.

Now, that’s what Jennifer alleges. But let’s assume this is true.

In the Bay Area spirit of everyone helping out everyone else – does anyone here have thoughts on how to help Jennifer out?

Comments (12) -- Posted by: burbed @ 4:24 am

July 19, 2009

San Francisco, San Jose, PMI, Risk Rank, Appreciation Volatility

Here’s some data I captured from the PMI website:

MSA San Francisco-San Mateo-Redwood City San Jose-Sunnyvale-Santa Clara New York-White Plains-Wayne
Risk Rank Elevated High High
Risk Index 2008 Q4 31.6 51.4 67.6
Risk Index 2009 Q1 66.2 78.4 87.8
Price Appreciation Volatility 15.4 18.7 14.4
Price Appreciation 2008 Q4 .17 -18.36 -2.13
Price Appreciation 2009 Q1 -17.02 -4.43 -6.00
Affordability Index 2008 Q4 118.38 112.75 85.60
Affordability Index 2009 Q1 129.85 132.34 97.19
Unemployment Rate 2009 Q1 8.0 10.2 7.9

We’re number 1! We’re number 1!

Congrats to the Bay Area for continuing to be more unaffordable than NYC Metro – while having a higher unemployment rate to boot!

This is one of those moments that we should all be so very proud of.

Great work everyone!

Comments (52) -- Posted by: burbed @ 5:01 am

Why does Orange Juice cost 75% more in San Jose?

Cost of Living: How Much For a T-Bone Steak? – Slideshows – CNBC.com
Orange Juice

High Price — San Jose, Calif.: $5.73
Low Price — Los Alamos, N.M.: $2.50
National Average: $3.27

Thanks to Burbed reader Ek for this find.

People outside of the Bay Area probably wouldn’t understand this – but the fact is that the orange juice is much fresher and tastes better when it is had in San Jose. The perfect weather, the perfect air, the perfect people all combined to make this orange drink even oh so refreshing. In fact, it’s 75% more refreshing!

Comments (2) -- Posted by: burbed @ 4:36 am

July 18, 2009

Roll over your IRA/401k into Real Estate

Burbed reader Sue was at the Menlo Park fair and she noticed this:

mpfair

This is what she had to say:

Gotta love the con artist and his bimbo. Oddly, they weren’t getting much business!

Hey, as we all know, stocks can lose money. But Real Estate? That’s a can’t lose in the long run. It doubles every 10 years whereas the stock market? Who knows!

Thanks Sue for the find!

Comments (22) -- Posted by: burbed @ 2:32 pm

Untapped Riches: Never Pay Off Your Mortgage — and Other Surprising Secrets for Building Wealth

It Saturday! That means it’s time for Burbed book recommendation!

Untapped Riches: Never Pay Off Your Mortgage — and Other Surprising Secrets for Building Wealth

Why do some folks get rich while others just get by? The biggest stumbling block for most people is believing they lack the capital required for serious wealth-building. Untapped Riches dispels this myth. This remarkable book reveals that most homeowners are in fact sitting on “untapped riches.” Working diligently to pay down mortgages, they are unwittingly tying up money in equity they could be investing elsewhere for greater return.

Offering 40 wealth-building and wealth-protection strategies, many of which fly in the face of conventional wisdom, Untapped Riches will change how readers think about borrowing money, investing, and mortgages. Challenging the idea that it is more financially sound to be debt-free, the authors believe that there is both good and bad debt — and that the former is essential to generating cash flow and building significant wealth. Real estate tycoons know it’s all about leverage. Now, the authors, who made their own fortune in real estate, show how anyone can get the cash they need, and really put it to work.

Why pay off your mortgage when you can easily use that money to earn more money! Like… buying more real estate!

Let’s face it, debt equals wealth. It’s what saved this this country in the first part of this century, and… uh… yeah!

Being debt free is for suckers. It’s what The Man wants you to believe is a good thing, so that you’ll never rise and become wealthy!

So load up on debt, and while you’re at it, help this site out, click this link to learn more!

Comments (8) -- Posted by: burbed @ 5:57 am

July 17, 2009

Study finds more millionaires in Bay Area

Study finds more millionaires in Bay Area
(07-15) 18:29 PDT — Last year, the S&P index dropped nearly 40 percent, regional home prices fell by almost half and the state unemployment rate zoomed to the brink of double digits, so obviously the number of Bay Area millionaires … climbed?

Believe it or not, that’s the conclusion of a report released Wednesday by Merrill Lynch. Several economists, however, quickly placed themselves in the “not” camp.

The World Wealth Report, produced by Merrill and market research firm Claritas, found that the number of millionaire households across the nine-county Bay Area climbed to 136,120 last year, up 10.2 percent from 123,621 in 2007.

In fact, all three regions surveyed in the Golden State (Los Angeles, San Diego and San Francisco areas) increased in wealth last year, in sharp contrast to national and global trends, said Mike Riherd, senior vice president of investments in the Walnut Creek office of Merrill.

[snip]

The report predicts that the number of millionaires in the Bay Area will increase by 20 percent by 2013. The wealth of millionaires worldwide will swell by 48 percent during that time, from $32.8 trillion to $48.5 trillion, it said.

The study defined millionaires as having $1 million worth of “investable assets,” which exclude things like their primary residence, collectibles and consumables.

Congrats Bay Area! With all these millionaires, I know we are set to blast off for returning to the normal 10% year over year appreciation for houses in the Real Bay Area.

Great work everyone!

Comments (22) -- Posted by: burbed @ 6:38 am

July 16, 2009

Bay Area home prices, sales rise

Bay Area home prices, sales rise
(07-16) 09:56 PDT San Francisco — Bay Area home prices rose month-over-month for the third straight time as sales reached their highest level in three years last month, fueling hopes that the limping real estate market is slowly beginning to heal.

Across the nine-county region, 6,518 existing, single-family homes traded hands, up 27.8 percent from a year ago in June, according to San Diego research firm MDA DataQuick. The median price paid was $360,000, down 29.4 percent from a year earlier but up nearly 7 percent from May.

DataQuick attributed the gathering strength to a growing perception among buyers that prices have bottomed out and the increasing availability of mortgages.

OMG! OMG! OMG!

The good times are coming back everyone! Woohoo!

Comments (37) -- Posted by: burbed @ 11:39 am

July 11, 2009

Let me know if the site is acting strange…

I’m not a very good admin – so I’m trying out some more tools to help make things better (and to help the behind-the-scenes spam problem that you don’t see). I’m trying out AskApache Password Protect. Do let me know in the comment if something gets busted. Thanks!

Comments (5) -- Posted by: burbed @ 4:02 pm