Buying Pays Off More Than Renting!

buy homes in phoenix azIn 64% of metro areas, it’s more worthwhile to buy than to rent.

If that kind of stat doesn’t blow you off your feet than you haven’t been paying enough attention. I’m gonna spell it out for you a little more so you really understand what’s happened and what you need to be doing about it.

Basically the wisdom has been for the last few years that it’s the age of the renter. Homeownership is dead and it’s time to focus on commercial real estate and residential rentals. (This is assuming we’re leaving out cleaning up the foreclosure mess and letting short sales do the real work.)

But it turns out that if someone is planning to stay in a home for at least 3 years, then it’s actually smarter to buy. That kind of number is like pre-crash days. It’s totally doable for most of the people you’re likely to meet and you definitely need to be pushing home ownership.

I know that everyone I teach and talk to has realized what a goldmine economy we’re living in. People are relocating and looking for a new place to settle down. But your job is to show them the wisdom of buying. It’s the time. Get in now and you’ll be looking at happy tenants and fat profits.

Fannie Mae Made a Fortune With Your Money

phoenix real estateI just read a heart warming story about a struggling company that worked hard, crawled back from the edge, and made a record in sales. This kind of determination is what makes America great, right?

Oh wait, just a few things you should know to help put the story in context:

1) The company took ridiculous chances and mishandled everything.

2) The company recovered with everyone else’s hard earned money since they didn’t have any of their own.

3) The company isn’t repaying a dime to its creditors.

4) The company’s latest success has absolutely nothing to do with its hard work.

That doesn’t sound much like the American dream any more, but maybe that’s just how things go.

I’m talking of course about Fannie Mae. This GSE made a real mess of its books during the housing crisis, begged for government handouts, then claimed it was back on track because of

– lower delinquencies (all the foreclosures happened already, right?)

– home prices rising (no thanks to them)

– and higher sales of Fannie Mae properties (they raked in $17.2 billion NET in 2012).

Oh, and $10 billion from Bank of America. Come to think of it, that’s our money too, isn’t it? So it’s just one big circle. Or more to the point, it’s a highway that goes in a circle with only an on ramp for our cash to get in the mix.

I’m really annoyed about this one. Anyone else have something to say?

No Longer Underwater!!

Weird week to report. It’s a case of the same news being looked at two totally different ways. Earlier in the week I told you how hard the rise in home prices has been on first time home buyers. It’s just getting more and more difficult for them to afford decent homes. So then what’s the other side of the story?

The fact is 25% of homeowners are underwater on their mortgages. But with values rising nearly 3.5 million borrowers are due to more out of the negative equity range. And another 6 million that could qualify for refinancing could also get back to a more normal 80%.

Sure those kind of numbers are up in the air and depend on a whole lot of things working out. But it’s hopeful at least. And that’s important to remember. Keeping up hope is the strongest way to change your situation.

If you’re unhappy with where you are then you may be in luck. But you need more than luck. You need a fire in your soul. You need a dream and a heart. I know those of you out there who have been following me all these years have those qualities. We’ve suffered through hard times, down economies, hopes and losses. But having the heart and courage to pull through is what keeps up strong. I’m proud of each of you and you should be proud of yourselves.

Have a great day. Things are looking up!