My old friend Allan Thompson used to say, “There is no such thing as a bad property, just untimely ownership.” I have been thinking lately that maybe these times have proven him wrong. Maybe not. The old adage about real estate, “Time heals all wounds” Seems to no longer apply. Maybe it does. We just don’t know yet.
In most cases, what are called “troubled assets”, really refers to troubled ownership. When foreclosure proceedings are filed they are not filed on a piece of dirt or a building. They are filed on an owner who did not make payments on that dirt. A property will always sell for what it is worth. Some properties are not worth much. Will they ever be worth what the owner paid for them? What if the owner had what they are worth now? Could that owner buy something better with that money and make more money in the long run?
The situation is similar to the stock market. Wachovia stock dropped in value until it became almost worthless. People who held it got about 1 share of Wells Fargo for every 5 shares of Wachovia. How long will it take for that stock to be worth what the Wachovia stock would have sold for even a week before the merger was declared? What will the yield be over that period of time? Sometimes it is good to look at our untimely ownerships. Sometimes we may be better off letting other people keep their untimely ownerships.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Friday, November 20, 2009
Thursday, November 19, 2009
Where Would You Like to Go
It seems to be slow coming this year; but the northern hemisphere will soon be in the grips of what is predicted to be a brutal winter. The hurricane season is lasting a little longer than usual this year. Some places are experiencing social unrest. It is time to start thinking about escape, even if it is temporary. Where would you rather be?
As nice as it is to escape the cold, Paris is fantastic at Christmas time. Saint Nicolas day in Brussels at the “Manikin Piss” square is unbelievable. Many of the places in Southern Europe are not too bad. Florida is at the height of “the season”. Central America and Mexico will be wonderful when hurricane season ends. Forget about the “swine flu”. Watch out for the “wine flu” (or tequila flu as the case may be).
The northerners will head south for the beaches. The southerners will head north for the ski slopes. There should be bargains aplenty this year if one has the money to enjoy them. Summer is coming in the far south. This might be a great time to visit Patagonia. Dig out that dusty old passport and put it to work.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
As nice as it is to escape the cold, Paris is fantastic at Christmas time. Saint Nicolas day in Brussels at the “Manikin Piss” square is unbelievable. Many of the places in Southern Europe are not too bad. Florida is at the height of “the season”. Central America and Mexico will be wonderful when hurricane season ends. Forget about the “swine flu”. Watch out for the “wine flu” (or tequila flu as the case may be).
The northerners will head south for the beaches. The southerners will head north for the ski slopes. There should be bargains aplenty this year if one has the money to enjoy them. Summer is coming in the far south. This might be a great time to visit Patagonia. Dig out that dusty old passport and put it to work.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Friday, November 13, 2009
Farewell to Lou Dobbs
Criticism of the system is not just ok, it is good. Criticism should be a positive thing and should offer a solution or an alternative to the problem. Lou Dobbs offers plenty of criticism; but he never offers solutions. His program was cut from the same mold as Rush Limbaugh’s. He got fired last night. It seems that CNN had a solution. Good for them.
Watching TV is not my favorite thing to do. The internet is much better and usually offers a broader range of views. CNN is an exception in that it offers a quick panorama of the current stories. One can see what is going on and then research the story in depth on the internet. The weather channel and CNN are the only stations I watch until Lou Dobbs comes on. Then the channel changes or I just leave the room. I don’t know who his replacement will be. I would suggest Kitty Pilgrim.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Watching TV is not my favorite thing to do. The internet is much better and usually offers a broader range of views. CNN is an exception in that it offers a quick panorama of the current stories. One can see what is going on and then research the story in depth on the internet. The weather channel and CNN are the only stations I watch until Lou Dobbs comes on. Then the channel changes or I just leave the room. I don’t know who his replacement will be. I would suggest Kitty Pilgrim.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Wednesday, November 11, 2009
1st Time Tax Credit not Just for 1st Timers
The 1st time home buyers tax credit has done a fantastic job of putting at least a little bit of floor in the housing market. It has now been extended and expanded. Under the new legislation, which President Obama is expected to sign, the 1st timers part of the program is extended through April 1. A new section is added that will give a $6500 tax credit to buyers who have owned their current home for at least 5 years.
The 1st time credit is $8000. The buyer must have the home under contract by April 30th. The closing must take place by the end of June. The minimum qualifying income levels have been increased as well. The single persons income level has been increased from $75000 to $125,000. The couples level has been increased from $150,000 to $225,000. This should make the tax credit available to almost everyone.
Persons who have owned their home for over 2 years still qualify for $250,000 tax exemption on the gain from their home or $500,000 exemption for couples. This could be an opportunity to get a lot of tax free cash for many people. This should be a better boost to the economy than almost any other provision of the stimulus package.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
The 1st time credit is $8000. The buyer must have the home under contract by April 30th. The closing must take place by the end of June. The minimum qualifying income levels have been increased as well. The single persons income level has been increased from $75000 to $125,000. The couples level has been increased from $150,000 to $225,000. This should make the tax credit available to almost everyone.
Persons who have owned their home for over 2 years still qualify for $250,000 tax exemption on the gain from their home or $500,000 exemption for couples. This could be an opportunity to get a lot of tax free cash for many people. This should be a better boost to the economy than almost any other provision of the stimulus package.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Tuesday, November 10, 2009
Tony Rickard
My friend and a friend of the Real Estate Industry died last Monday morning of pancreatic cancer. Tony was a tireless crusader for his clients and for the REALTORS Land Institute and the NC CCIM Chapter. He was only 58 years old; but he accomplished more in his 58 years than most of us do in a much longer lifetime. Even weeks before his demise he was full of ambitions.
Tony described his business as “search and destroy”. He should have called it search and build. Tony’s m.o. was to find a retail user or developer who had a need and find the property to meet that need. Frequently he would build or develop the property himself. His methodical approach to find the perfect property was amazing. Even before the days of GIS and GPS software, Tony would use a light table to make maps and plot all of the locations in a particular business on the map. He would then look for a “hole”. He would contact the owners of the “hole” and then find a user who fit.
Tony was unselfish with his knowledge and techniques. He wrote and taught Land Institute courses to help others be successful. He planned events and classes for the NC CCIM Chapter. He has left a “hole” in all of the hearts of those who knew him. If we see Walmart and CVS stores in heaven, we will know Tony is still busy.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Tony described his business as “search and destroy”. He should have called it search and build. Tony’s m.o. was to find a retail user or developer who had a need and find the property to meet that need. Frequently he would build or develop the property himself. His methodical approach to find the perfect property was amazing. Even before the days of GIS and GPS software, Tony would use a light table to make maps and plot all of the locations in a particular business on the map. He would then look for a “hole”. He would contact the owners of the “hole” and then find a user who fit.
Tony was unselfish with his knowledge and techniques. He wrote and taught Land Institute courses to help others be successful. He planned events and classes for the NC CCIM Chapter. He has left a “hole” in all of the hearts of those who knew him. If we see Walmart and CVS stores in heaven, we will know Tony is still busy.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Monday, November 2, 2009
Brazil is Better
Not only is Brazil better than it was it is better than most of the alternatives. My mama used to tell me, “If you can’t say something good, don’t say anything.” I haven’t written much lately. Finally, looking through the economic data on the internet, a bright spot appears. For the real estate business, two important indicators are the “Production of Construction Inputs” and “Real Wages in the Manufacturing Sector”. Almost every sector shows improvement over the last several months.
“Production of Construction Inputs” has increased, as has steel production, to almost mid-2008 levels. ( The Brazilian economy was much slower going into recession than the rest of the world.) This means people are building again. Jose Augusto Pereira Nunes of Algebra Realty in Miami tells me that in northern Brazil, foreigners are buying. In Sao Paulo, the commercial business is largely foreign; but the residential sector is mostly domestic.
“Real Wages in the Manufacturing Sector” is important because it indicates that people will have the money to buy. This is probably why residential purchases are improving in Sao Paulo. It is nice to say something nice.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
“Production of Construction Inputs” has increased, as has steel production, to almost mid-2008 levels. ( The Brazilian economy was much slower going into recession than the rest of the world.) This means people are building again. Jose Augusto Pereira Nunes of Algebra Realty in Miami tells me that in northern Brazil, foreigners are buying. In Sao Paulo, the commercial business is largely foreign; but the residential sector is mostly domestic.
“Real Wages in the Manufacturing Sector” is important because it indicates that people will have the money to buy. This is probably why residential purchases are improving in Sao Paulo. It is nice to say something nice.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
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