Real Estate: A Strong Investment

Description: Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. Also remember that the stock market is not the only place where people can make their fortunes. And also, you'll hardly ever hear of real-estate investors who've gone bankrupt, unlike stock market investors.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. So, according to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than the rate of inflation. In fact, the prices of houses actually increased by 10 percent during the economic recessions of the mid-19702 and the early 1980s.

The last downturn of the global stock market resulted in millions of investors who got their fingers burned. Overnight, life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy, to say the very least. And as a direct result, investors sought alternative asset classes to invest their hard earned money in. This has led to a global boom in real estate markets and property prices, and has spawned a generation of budding real estate investors.

However, the opportunities to make big, quick profits in residential real estate tend to come and go. If the local market is hot, families might get to buy and sell a house at a profit. but, if the market is not so hot, there are chances that you'll have to hold on to the house for a longer period of time before selling it or at least till the market turns.

Tips for First-Time Real Estate Buyers
If you play well, you can be the big winners in this current environment of boom. However, it's important to draw up a good budget to help you decide what you can afford. And, once you've determined a price and picked your desired community, you can shop around to find the best house within your budget.

However, for those of you who're still uncertain about how to go about it, there are five things that might just help you close a great deal. While deciding on the house to invest in, never make the mistake of assuming anything. Instead get help from an expert if you've any doubts. Also, it's important to set a realistic budget and stick to it. You also need to consider every single area of cost and payment to make sure that there are no nasty surprises on the way.

More than Just an Investment
Residential real estate is more than just an investment. For example, if you purchase a vacation home, it will not only be a great deal when housing prices move upwards, but it can also be a place for some great vacations for your family and you.

Also, there is another advantage. The federal government believes that home ownership is so important to the future of our country that it has allowed mortgage interests to remain a substantial tax shelter for families. So, homeowners are allowed deductions on their property taxes. And, the profit on the sale of your home remains tax-free as long as you buy a house for a greater or equal price.

So, before you decide that residential real estate investment is not exactly your cup of tea, re-examine the financial benefits of owning your own home. Also remember that the stock market is not the only place where people can make their fortunes. And also, you'll hardly ever hear of real-estate investors who've gone bankrupt, unlike stock market investors.

Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a Real Estate Agent, Naomi has established herself as an analyst and Property Consultant, Australia.

http://www.mortgagemall.com.au

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

California has until Monday to share in a multi-state deal with banks to obtain mortgage relief and reforms. Atty. Gen. Kamala Harris, who walked away from talks last year, says the door remains open.

With a Monday deadline at hand, California officials have resumed direct talks with the Obama administration about joining a multibillion-dollar, multi-state mortgage settlement with the nation's largest banks, a source said Sunday.

The talk show host pays $12 million for the 4,088-square-foot house with four bedrooms and four bathrooms. The ocean-view home sits on 1.26 bluff-top acres with beach access.

In one of the more talked-about transactions in town, actors Brad Pitt and Angelina Jolie have sold their Malibu beach house to daytime host and comedian Ellen De Generes for $12 million.

The four-bedroom, five-bathroom house built in 1920 for industrialist James Wigmore lists for $2,875,000.

A decorative cast stone entrance opens to this restored Spanish Colonial Revival-style house in Pasadena's South Orange Grove area. Built in 1920 for industrialist James Wigmore, the house retains such original details as coffered wood ceilings and arched doorways.

They don't believe they can sell their property for what it's worth, so they're spending money on making their homes more comfortable.

Do you fit any of these descriptions?

A biennial research report by the National Assn. of Realtors indicates that a handful of real estate agents and brokers and their clients either don't know the law or don't care to follow it.

When it comes to lawsuits, real estate agents and brokers tangle mostly among themselves.

The president aims to help about 3.5 million people with good credit who are unable to refinance at historically low rates because their homes are worth less than their mortgages.

 

The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.

The Standard & Poor's/Case-Shiller index of 20 large U.S. cities fell 1.3% in November from October as foreclosures continue to drag down the housing market.

Three straight months of home-price declines in the biggest U.S. cities showed that foreclosures remain a significant drag on a housing market that is entering its fifth year of deterioration.

L.A. Clipper Chris Paul may be quick down the court, but he moves pretty fast when it comes to buying multimillion-dollar real estate too.