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Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
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The Creating Wealth Show Blogcast
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Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
This is a short professional reading, audio blog or blogcast from the JasonHartman.com blog. You'll learn how to survive and thrive in today’s economy as business and real estate investment guru, Jason Hartman shows you innovative ways to "game the system" relating to the American economic mess, Wall Street scams, mortgage meltdown, inflation induced debt destruction, deflation and monetary policy. Jason shares his no-hype investment strategies for REO's / foreclosures, auctions, lease options, land contracts, mobile home parks, self-storage facilities, rental apartments, office, retail, industrial, tax liens, loan modifications, credit repair and commercial real estate. Jason Hartman is a self-made multi-millionaire with years of financial experience. He currently owns properties in several states and has been involved in thousands of real estate transactions. Subscribe now for free to learn how to follow in Jason's footsteps for a more abundant life.
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79 에피소드
모두 재생(하지 않음)으로 표시
Manage series 1295539
Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 Jason Hartman, Jason Hartman with Ben Carson, Noam Chomsky, Robert Kiyosaki, John McAfee, Brian Tracy, John Sculley, Thomas Sowell, Pat Buchanan, Jim Rogers, John Gray, Harry Dent, Bill Ayers, Steve Forbes, Daniel Pink, Todd Akin, Meredith Whitney, and Denis Waitley 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
This is a short professional reading, audio blog or blogcast from the JasonHartman.com blog. You'll learn how to survive and thrive in today’s economy as business and real estate investment guru, Jason Hartman shows you innovative ways to "game the system" relating to the American economic mess, Wall Street scams, mortgage meltdown, inflation induced debt destruction, deflation and monetary policy. Jason shares his no-hype investment strategies for REO's / foreclosures, auctions, lease options, land contracts, mobile home parks, self-storage facilities, rental apartments, office, retail, industrial, tax liens, loan modifications, credit repair and commercial real estate. Jason Hartman is a self-made multi-millionaire with years of financial experience. He currently owns properties in several states and has been involved in thousands of real estate transactions. Subscribe now for free to learn how to follow in Jason's footsteps for a more abundant life.
…
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79 에피소드
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×1 CW Blogcast 79 -What’s the Home Buying “Freedom Threshold”? 4:34
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4:34While everyone’s attention has been focused on the Millennials and their housing choices, it turns out that it may be those famous Baby Boomers who wield more influence in today’s housing market. According to new article from the Bryan Ellis Investing Letter, research from Merrill Lynch reveals that the “magic age” for housing choices is not those post college years, but one much farther away: age 61. That’s the age when, according to Merrill lynch analysts, people really feel free to choose where they want to live. This “Freedom Threshold” comes at a time when people are able to let personal preferences and not job or family responsibilities dictate where and how they live. That “golden age” defined by Merrill Lynch falls on the threshold of the traditional American retirement age, typically either 62 or 65. At that point, homeowners are looking ahead to a retirement that’s potentially another quarter century or more long, and they want it to be on their own terms. The freedom to choose exactly where you want to live isn’t easily accomplished at other ages. Factors like jobs, family obligations and money drive those kinds of decisions at younger ages. For the Millennials born between the 1980s and 2000 or so, choices about housing are driven partly by choice – as a group, they tend to fear being trapped by owning a home when other parts of their lives are subject to great change. But those choices are also limited by economic necessity, such as having to relocate for work, facing limited job opportunities or struggling with student debt. Fast forward a few years, and somewhat older individuals are making housing choices based on jobs and family. Buying a house and staying in it may not be a matter of personal preference, but of factors like proximity to well paying work, schools or other amenities. Once the nest is empty, these homeowners may feel free to make other choices, but with growing families and career demands those choices end up being postponed. That, say the researchers at Merrill Lynch, brings us to that magic age of choice, 61. But what people do with the freedom that lies ahead is as varied as the individuals themselves. Some might opt to downsize, selling off a large family home once children are grown and gone in favor of a smaller place. Others might choose the opposite route, upsizing from a small house to a larger one that can accommodate visits from family and friends. And still others opt out of the homeowner role entirely, choosing to rent a place that offers amenities and takes care of repairs and lawn maintenance. Moving into a mobile home, or hitting the road in an RV or living abroad for a part of the year also appeal to some. Whatever housing choices these new retirees and near retirees make, they mean movement in the housing market – more movement than in other age groups. And since the Baby Boom generation is second only to the Millennals in size, that “magic age” for housing choices has the potential to drive significant changes in the US housing market – and create new opportunities for investors in rental real estate. People now nearing that Freedom Threshold aren’t looking for “retirement” or “active living” communities. Only seven percent of those surveyed by Merrill Lynch wanted that kind of living arrangement. They want to live in vibrant, diverse communities close to the amenities they want, such as shopping, dining and entertainment. Though age related services are somewhat important, such as proximity to health care and the opportunity to stay at home rather than move into assisted living facilities, that’s not as much of a priority for this age group as you might expect. They’re active, engaged and eager to enjoy life. That’s a trend worth watching for income property investors. The choices made by those who now have the freedom to design their home life will affect the number and kind of homes available to buy as well as their prices. Those choices also open opportunities for investors who want to attract tenants of that age group to their rental properties. While all eyes are on the Millennials, once again, the Baby Boomers are stealing the show. And investors willing to keep an eye on the changes they bring to the market can find new ways to build wealth through real estate, as Jason Hartman advises.…
1 CW Blogcast 78 - Solving Real Estate’s “Millennials” Problem 3:54
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3:54The Millennials have taken a lot of heat lately, criticized for poor work ethics, overdependence on technology and general lack of interest in notching up the traditional milestones of “adult” life. Now, as home sales continue to drop, market watchers are looking once again to the attitudes and behaviors of Millennials for explanations. Millennials - those born between about 190 and 2000 – do account for 76 percent of first time homebuyers. But since as a group they’re postponing home buying and other major life decisions, their numbers aren’t doing much to change the overall slump in first time home purchases. But according to new statistics reported by Real Estate Consulting, these young people aren’t saying “no” to home purchases as much as “not now.” And their reasons for doing so reflect not the much publicized slacker mindset, but a cautious one inspired by their parents’ struggle with tough economic times. That wariness to commit to a long-term financial obligation combined with a changing social climate contributes to some of the stereotypes about Millennials’ preference for renting and budgeting for different needs than home buying. And because Millennials now make up the largest demographic group in the United States, second only to the famous Baby Boomers, investors in rental real estate may want to take a closer look at their reasons for doing so. As just about everyone knows, one pressing problem for Millenials is the much publicized student loan debt. That burden, along with Millennials’ equally well-publicized struggles in the traditional workplace, creates the stereotype of the young college graduate forced to live at home with Mom and Dad while working at a low wage job. But as Real Estate Consulting reports, that’s not the whole picture. In a culture where life spans are longer than ever and 60 is the new 40, Millennials are postponing all those so-called adult decisions to later points in their lives. They’re marrying later, and having children later too – if they have them at all. Jobs may take them to different places, so settling down can wait a while. Behind some of those decisions is a very real fear of an uncertain future. Many in this generation have seen their parents and grandparents struggle through the last recession, with lost jobs, low wages, and an economic crash triggered by – what else? – the collapse of the housing market. So it may not be too surprising that many Millennials see a house not as an investment or a step toward a more secure future, but as a millstone. Buy a home? What if you find a job in another city? What if a future spouse doesn’t like living there? What if you lose your job and can’t find another one to pay the mortgage? And what if you want to travel? If fear is a factor driving the Millennial aversion to home buying, another, and potentially more important, one is simply shifting priorities. The world in which this generation came of age is simply a different one than that of their parents – not just financially, but culturally. Not all Millennials are cash strapped and debt-burdened. They may have the ability to save for a down payment or manage a mortgage, but they’re choosing to put it toward other things such as technology and entertainment services. And they’re questioning the value of house payments when the same amount will cover a rental with amenities like pools, gyms and good location. A good location too, means easy access to restaurants, shopping and work. Millennials as a group buy fewer cars than previous generations, partly because of debt, but also out of choice, so living close to those amenities is a major factor in choosing a place to live. All these sometimes contradictory characteristics paint a picture of a generation that sees the world through a different lens than their parents do: cautiously optimistic, but also keenly aware that things can crash at any time. They may not reject the traditional model of adulthood outright, but they’re certainly taking it with a grain of salt. That’s why Millennials can have such an impact on the world of real estate in general and home sales in particular. And for investors, understanding that impact and the reasons behind it can open doors for new opportunities to build wealth in rental real estate – as Jason Hartman advises.…
The recovery from the much publicized housing crash of a few years ago may be hitting a wall, thanks to declining numbers of a group that’s essential to a robust housing market: first time home buyers. Although the US housing market continues to show encouraging signs of emerging from the rubble of the 2008 collapse, its long term recovery depends on those first time buyers, who inject new life into the market not just by purchasing new and resale homes, but also by spending money after the purchase on a variety of consumer goods and services. Otherwise, the home buying and selling cycle becomes a closed loop that depends on existing homeowners making the move to sell their houses – and that’s slowing down too. Overall, the number of US homeowners is at its lowest level in over two decades. And according to new figures reported by Business Insider, the number of first time buyers stands at just 29 percent, down from 40 percent in 1980. Although real estate professionals and market watchers cite a number of factors keeping people from buying their first home, the main reasons are both simple and hard to address: availability and affordability. One sigh of a recovering housing market is the demand for homes to purchase, and in many areas of the country, demand is outstripping the inventory of available homes for purchase. That’s one reason for the steady rise in home prices – another sign of recovery. But the scarcity of homes for purchase, along with those rising prices, mean that first time buyers can’t find homes that they can afford. The shortfall in available housing has its roots in the wave of foreclosures that followed the housing crash, which pushed millions of homeowners into foreclosure. As those foreclosure proceedings crawled through the courts and financial institutions, the properties involved stayed off the market. The “foreclosure pipeline” cleared in fits and starts over the next few years, with some periods of higher inventory followed by shortfall. The problem was complicated by the efforts of mortgage servicers and brokers holding title to those foreclosed properties. After the crash, institutions including government mortgage giant Fannie Mae and major banks auctioned off their foreclosure holdings quickly in batches to large domestic and foreign investment companies, which used them as rentals. Those sales kept thousands of homes out of the hands of residential buyers as well as individual investors. What’s more, increasing numbers of existing homeowners, who might in past years have followed the typical pattern of buying a starter home and moving up to a bigger house as careers and finances matured, are opting to stay put. These homeowners are choosing not to sell for a variety of reasons. Rising home prices may mean that a seller could lose money on a sale, thanks to changes in capital gains taxes and trends in home values. And current low interest rates make refinancing and holding onto an existing home a more attractive option than buying another one. For those reasons, there’s a short supply of the lower priced starter homes most first time buyers can afford in the areas where they want to live. Most first time buyers are younger, with a median age of around 30. They’re largely members of that cash strapped millennial generation that’s burdened with student debt and unsure about their employment future. They’re reluctant to take on the commitment of a mortgage and a permanent residence – and they’re putting off life steps like marriage and family. For many, there are other hurdles too. Even though mortgage lending standards have loosened to encourage more first time buying, for those with heavy debt and uncertain finances, qualifying for a loan may be hard. And even if it’s possible to qualify, making that down payment requires resources they simply don’t have. Another factor is location. Lower cost housing tends to be in less desirable areas, far from the city centers where work and social life take place – and potential home buyers may not want to take on long, expensive commutes in order to own a home. The obstacles facing first time homebuyers aren’t limited to residential buyers. They also affect solo investors hoping to get started in income property investing. Equalizing access to housing and opening up more home for purchase may be a long term effort, but for now, the shortage of available homes to buy may keep the rental markets humming – and that’s good news for investors willing to diversify their holdings in multiple markets, the way Jason Hartman advises.…
By a number of indicators, the US housing market is bouncing back after its massive collapse of 2008. But US homeowner rates are at near historic lows, with few first time buyers. Among the many factors contributing to those low rates are an often overlooked, but essential one: in many areas around the country, there’s a housing shortage: the supply of avaialble homes to buy is lower than the demand. After the housing collapse put unprecedented numbers of homes into foreclosure and millions of homeowners into crisis, home prices have begun to rise, new regulations on the mortgage industry have reined in the reckless lending practices that contributed to the collapse and the recession that followed. In the years that followed the collapse, the inventory of available houses for purchase ebbed and flowed, as foreclosures crawled through the legal system. And when they did, banks and other financial institutions often auctioned them off in batches to large domestic and foreign investment firms, without offering access to individual buyers and investors. In some areas, too, the number of available homes to buy was affected by the “zombie: phenomenon: homes left abandoned by homeowners in trouble, but which hadn’t been formally foreclosed. Add to that a slow recovery for new home starts, and it’s easy to see how a chronic shortage of homes could shadow the nation’s recovery. But there’s another, often overlooked reason for low inventories in many markets around the country: people who own homes now aren’t selling them – and that’s creating a bottleneck that cuts off first time buyers and high end sellers alike. One aspect of the American dream of owning a home is the ”starter house.” In the traditional paradigm, young people save up enough to buy a modest first home – the starter where they’d begin raising children and creating a solid career. Then, when things were looking up financially, they’d move up to a bigger, more lavish house. That pattern might repeat a time or two before retirement, when they’d once again begin contemplating either moving up again or downsizing into a more manageable empty nest. But current economic conditions mean that that choice is less likely for many Americans. And, as a new article from Inman points out, understanding the dynamics behind the slowdown in selling is key to formulating predictions for the future of the housing supply and trends in home prices. The rise in prices have an indirect effect of chilling home sales, One reason has to do with US capital gains tax laws, which underwent a major change in May 1997. Before then, if a homeowner sold a house for a profit, that profit was automatically subject to a whopping capital gains tax penalty. The only way to avoid the capital gains tax was to put the sale money into a property if equal or higher value within two years. In 1997, though, that all changed, thanks to the Taxpayer Relief Act, which allowed for a one time tax exemption of up to $125,000 in capital gains. That meant that homeowners could sidestep the tax if they bought another house. But as prices rose, fewer could opt to move up to a pricier dwelling because their gains on their existing property would exceed the tax cap and therefore end up costing them money. Low interest rates also play a role in keeping homeowners from selling. If owners have refinanced a home thanks to those historic low rates it’s less likely they’ll be willing to put the property up for sale and risk facing higher rates on a new purchase. Those values are still not at peak, so as they continue to climb, those homeowners won’t be interested in selling. / What’s more, according to Inman, changing property valuations since the crash sent those values plummeting could play a role in keeping houses off the market. Homeowners may be holding on to their properties as they wait for home prices in their area to go up.…
Fifteen years can seem like a pretty long time – and the year 2030 sounds like a date from a science fiction novel. But the future is now – and, as a recent article from Business Insider reports, today’s emerging trends will shape the investing landscape of tomorrow. According to Business Insider, KPMG, the international tax and financial advisory consortium, recently released a report detailing likely changes in the financial and investing fields over the next fifteen years, and their potential impact on the world of investing in all its forms. While many of KPMG’s predictions are directed to investment firms and financial advisers, investors in income property can find new opportunities by following the future too. The research conducted by KMPG finds four factors that shape megatrends in investing – and in just about every industry: changes in demographics, technology, social behavior and the availability of resources. Those “big picture” shifts affect a variety of smaller changes that lay the groundwork for a very different investing landscape. The seeds of those megatrends have already been planted. Trends shaping the investing world of today are only expected to accelerate heading into the next decade and beyond. Among them: changing dynamics in the provider-consumer relationship, increased use of mobile technology and social media, and psycho-technological innovations like virtual reality applications and gamification. We’ve already seen how the Internet and social media have changed the way people buy real estate. It’s possible to find properties online and do the entire buying process without the need for any kind of real estate professional. Buyers and renters can search for properties anywhere, anytime, and innovations in virtual reality technology allow them to take customized virtual tours and even “try on” various décor and remodeling options. The use of social media and online contacts also points to a shift in attitudes about doing business. In a world where fraud and scams are easier than ever, trust and authenticity are essential – and businesses and individuals who cultivate credibility and honesty stand out. It’s also a world of increasing audience engagement, as buyers and sellers become more independent and willing to educate themselves rather than depending on advisers and other professionals to make their decisions for them. In fact, by 2030, some financial professions may all but disappear, their place taken by independent consumers with the tools to do the job themselves. The investing world of the future is also likely to be far more mobile and global than ever, as technology puts people in touch from around the globe and transactions can be conducted with the click of a mouse or the keys of a smartphone. The investing world of a few years from now will also be affected by changes in available resources. Current climate events like the ongoing severe drought in California will push development and real estate prices in new directions, and the current shortage of available homes for purchase could create major changes in who buys homes, and where. The availability (or lack thereof) of energy sources also plays a role. The recent drop in oil production hit some oil dependent cities hard, and other changes in the supply of energy and other resources, combined with other economic and social factors, could mean major changes in real estate and other kinds of investments. Changing demographics, along with changes in societal values, may also mean big shifts in how people buy, save and allot their resources. In fifteen years, today’s “millennials” will be approaching midlife – and they’re now the largest demographic group in the US. Their choices – and those of other generations too – are shaped by changing values about consumerism, the environment and other issues. For investors, the world of 2030 may look a lot like the one of 2015, only much more so. It’s a future that belongs to those who are willing to take charge of their investments, stay flexible, and keep on learning – Jason Hartman’s keys for investing success for today and for tomorrow.…
The specter of inflation strikes chills into the hearths of many consumers – even more than its cousin, deflation. But not all inflation is created equal – and for both the economy at large and for income property investors, some inflation can be a very good thing indeed. Consumers fear inflation because to them it means higher prices for the goods they buy every day. In oth4er words, the dollar doesn’t go as far as it once did. And most people don’t give much thought to inflation’s opposite number, deflation, which economists and financial experts consider far worse. Inflation is measured a number of different ways. The Consumer Price Index tracks how much it costs in a given period to buy a specific amount of tangible goods. Those figures are expressed in two different kinds of inflation – headline and core. Headline inflation is the kind most of us worry about – the rate of inflation in prices for all kinds of goods, both those with relatively fixed prices such as clothing and “volatile” goods like energy and food, whose prices can change considerably due to a variety of shifting factors. Core inflation, on the other hand, measures the costs of stable goods only. It doesn’t take into account the prices of those volatile goods, and some economists consider it a more accurate representation of actual inflation. Others argue that since core inflation numbers exclude food and fuel, those stats give a skewed impression of that actual inflation that hits American consumers and drives monetary policy. There are other models for tracking inflation, too, and some financial experts are calling for more investment into using them. But these models only chart how much inflation is affecting consumer buying power and business prosperity. They don’t reveal the effects of inflation on individuals and the economy – or what to do about it. Inflation has a variety of causes. According to a recent Business Insider article on the history of inflation for over a century, the US economy underwent cycles of severe inflation after the two World Wars, and has gone through a number of milder cycles of inflation and deflation since then. Severe deflation led to the Great Depression of the thirties and is associated with other tough economic times over the years. That’s why the Federal Reserve has decided that a little inflation is better for the economy than none at all. And though it may seem like callous disregard for the every day consumer, the Fed aims to keep the economy in a slight state of inflation – ideally, around two percent a year. That rate, as the Fed sees it, is just enough to keep prices and wages relatively high and prevent a slide into deflation and ultimately recession as prices fall and so do wages in the dreaded deflationary spiral. To do this, the Fed sets federal fund rates, the rates for bank-to-bank lending. While that doesn’t impact consumers directly, its effects trickle down in the form of rates for long-term loans – such as mortgages. If some inflation benefits the economy as whole, it can also be a boon for investors in income property, since real estate can be a hedge against inflation. Rising prices can increase the real value of property over time, and that means higher resale values. A positive inflation model assumes higher wages along with higher prices, so investors in rental real estate can charge higher rents. But the most significant benefit of inflation for investors is the lower “cost” of a mortgage. If you purchase an investment property with a long term fixed rate mortgage, as Jason Hartman recommends, your mortgage payment will stay the same, but it takes less of a bite over time. Higher prices and higher rents make it easier for those rents to cover mortgage payments, and the real value of the debt goes down. That’s another reason to leverage the power of a mortgage for building wealth in rental real estate. However it’s measured, inflation is a part of the financial landscape. But for income property investors and the economy as a whole, a little inflation may not be a dangerous thing.…
1 CW Blogcast 73 - New Technology Promises Big Changes for Real Estate 4:53
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4:53No more real estate agents? In the brave new world of real estate, agents, brokers and just about every other part of the traditional way of buying and selling property could be going the way of the dinosaur, thanks to innovations in virtual reality and artificial intelligence technologies. Online access and social media have already brought big changes to the world of real estate. Most real estate agents and other professionals involved in real estate transactions do business online, and Internet listings bring buyers and sellers together from all over the world. Online listings can also feature photo galleries and virtual tours offering video walk throughs of properties up for sale. Add to that the reach of social media. Buyers and sellers can connect on Facebook, get real time updates from their agents vie Twitter, and mobile devices let all parties stay connected all the time. Those tools have already marginalized whole groups of real estate professionals, as buyers and sellers are more and more able to conduct business themselves. But as a recent Forbes article notes, the next generation of these technologies have the power to affect how the world does business in many ways. And the widespread application of VR and related technologies on the real estate market could end up not just marginalizing, but also virtually eliminating, these “middlemen (and women)” altogether. The notion of the virtual home tour isn’t particularly new. A number of companies have been offering that kind of experience for some time, using video to capture detailed views of property up for sale. Prospective buyers can then contact sellers or their agents to go further. But the next generation of virtual reality technology takes that concept to new heights. Thanks to new applications developed by Sony, Microsoft and a number of other heavy hitters in digital innovation, it’s now possible to virtually be present in a particular place – even if you’re hundreds of miles away. New imaging technology also makes it possible to "try on” new hairstyles, glasses and even faces prior to plastic surgery. And within the next few years, applying that kind of technology to real estate could produce the ultimate in virtual home touring. Applying VR technology to the world of real estate has the potential for bringing buyers and sellers together in ways that essentially eliminate the need for a third party such as a real estate agent or a broker. As they can now, prospective buyers would be able to browse home listings anytime, from their own homes – but thanks to sophisticated VR applications, they’d be able to ”visit" the property and see any parts of it that interests them, rather than view a pre-recorded video tour. What’s more, the new generation of VR tech would allow them to customize their experience. Just as it’s now possible to upload a photo of yourself and preview new glasses and new noses, prospective homebuyers could upload images of their furniture or wall hangings to virtually try them out in the home under consideration. They’d also be able to virtually paint the house, preview landscaping options and add features like a pool. With unlimited time and options to choose, potential buyers would learn more about the house and its potential than a physical tour with an agent could ever offer. Many of those options are made possible by advances in artificial intelligence. AI technology gives us “smart” devices and apps of many kinds, from options to remember our passwords to simple recommendation technology that offers new choices based on a user’s previous purchases or selections. Applied to virtual reality driven online real estate listings, the platform could offer browsers more listings based on their previous searches and customize them with a user’s preferred features. If someone’s ready to buy, the interface could allow users to place a bid, contact a seller, and conduct most pieces of the transaction without ever leaving the site. With some aspects of the new tech already in place for other applications, the new world of real estate could arrive within the next couple of years. It may be premature to count out agents, brokers and mortgage managers completely. But the new world of virtual reality and AI technology has the potential to put control over the transaction in the hands of buyers and sellers and eliminate dependence on “experts” who may be incompetent or downright criminal. And that, as Jason Hartman says, is the cornerstone of smart investing.…
1 CW Blogcast 72 - Renters Will Be Renters – Not Home Owners? 4:40
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4:40Time was, renting an apartment – or maybe a house – was just a temporary arrangement until you saved up enough to buy your very own home. But for a growing number of today’s renters, that scenario just doesn’t appeal – and that trend has big implications for investors in rental real estate. According to recent statistics reported by Business Inside r, at the end of 2014, only 14.7 percent of tenants moving out of an apartment did so because they were buying a home. And in the years since the housing collapse of 2008, the percentage of renters moving out to buy a home of their own has stayed under 17 percent. Those figures come at a time when the US homeownership rate overall is at its lowest point in over two decades – just 64 percent. And of those homeowners, only 29 percent are first time buyers – a group essential to the continued recovery of the housing market. In the years since the housing crash, rental markets have surged even as home buying rates fall. To explain why, real estate professionals look once again to the millennials, those young people born between the mid 1980s to around 2000. The average age of the first time homebuyer is around 30. In the traditional model of American adulthood, that would be the age at which a n individual has finished school, settled into a steady job, and is getting ready to marry and start a family. But in today’s volatile economy, that model just isn’t working for many new and recent college graduates. Faced with student debt and an uncertain employment picture, many of these thirtysomethings fear being tied to the long-term commitment of a house. For many, job security is an issue. A recent college graduate may have to move across the country to start a career – or halfway around the world. For others, debt and low income make getting a loan more difficult. Even though lending standards have loosened in an effort to encourage more new buyers, affording a down payment and convincing a bank that you’re mortgage material can be difficult. But that’s assuming of course that there’s a house to be bought. The inventory of available houses for purchase remains low in many markets around the country, and that shortage is especially acute for “starter” homes that first time buyers can afford in areas they want to live in. Established homeowners aren’t selling those homes and moving up to more lavish residences. Many are watching home prices rise in hopes of selling at the house’s peak value; others are enjoying good refinancing deals at low interest rates and don’t want to risk a capital gains penalty for selling. For all those reasons and others besides, today’s renters just aren’t moving out of rental housing to a house they’ve bought. As Business Insider reports, a recent survey of reasons renters moved out of apartments found that the percentage of renters surveyed who did that peaked in 2004 – well before the housing crash of 2008. Today, the numbers of renters leaving to buy a home continues to fall – lagging behind other reasons such as rent increases, job changes, and even evictions as reasons for leaving their current housing. Most renters in the survey opted simply to move to another rental residence of some kind, either in the same or a different city. And those numbers don’t appear likely to change any time soon – a trend that worries real estate market watchers who fear that the continued slowdown in homeownership, especially among those prized first time buyers, could stall the housing recovery and by extension the economy as a whole. But the low homeownership numbers and the reasons behind them continue to feed a flourishing rental market, where rents continue to rise and even rental housing in desirable areas becomes scarce. And even though some renters opted to move just because rents were rising too high in their current rental, they chose another rental, not a house carrying a mortgage payment that might be lower than rent. In spite of the best efforts of the mortgage and housing industries to change them, the twin trends of low interest in home buying and the limited availability of homes to buy mean that renters will be renters – and for investors taking Jason Hartman’s advice on building wealth in real estate, that means a rich pool of tenants for the long term.…
1 CW Blogcast 71 - Millennials Are Making Money In Real Estate 4:27
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4:27The “Millennials” have been in the headlines a lot lately – and not for good reasons. Alternately criticized for their values and work ethic and pitied for their crushing load of student loan debt, this generation of new and recent college grads seems to be facing a bleak financial future. But a young real estate investor is proving that smart money management can pay off handsomely – even for those cash strapped millennials. A recent article from NextShark profiles 27-year-old Brian Maida, who bought his first house two years after graduating from college. Now, with two properties under his belt, he's anticipating a comfortable retirement from his investments. His journey from income challenged new graduate to investor/entrepreneur demonstrates that you’re never too young to start investing. Millennials – those born between about 1985 and 2005 – now make up the largest demographic group in the United States, eclipsing even their famous predecessors the Baby Boomers. By most accounts, they’re a generation in trouble, too. New college graduates now leave school with an average of $10,000 in student loan debt. They struggle in a tight job market to find work in their fields, and many end up wither spending their entire working life paying off those debts or defaulting completely. In the workplace, too, millennials struggle with a culture that’s often at odds with their values and lifestyles. Employers used to dealing with a more traditional kind of worker who understands and respects the formalities of the 9 to 5 world claim that their millennial-age employees don’t seem to get it. They see no reason for restrictive work hours and dress codes, and they prefer communicating electronically than in person. It’s perhaps no wonder that the mainstream work and social culture despairs of the millennials. And many of them despair too, stuck living with family and friends to make ends meet and delaying traditional milestones like marriage, children and home purchases. But that doesn’t have to be the case. Students are finding alternatives to taking out massive student loan debt to finance their education, such as using alternative avenues to get college coursework out of the way before enrolling, and taking advantage of free programs and scholarships instead of loans. They’re turning to entrepreneurship rather than traditional employment, too, seeking funding from crowdsourcing, creating online companies that require little by way of physical resources, and attracting investors eager to back an innovative idea. They’re also investing – and that’s what makes Brian Maida’s story an example of turning some of the stereotypical downsides of millennial life into a lucrative upside – and a model for others to follow. As NextShark reports, the New Jersey native opted to live at home after graduating from college, like many of his peers. While that’s seen as an indication that the person in question simply can’t make it on their own, Maida put his time to good use, saving up enough to buy his first house. Then he leveraged that investment to buy his second property a few years later – and now, a few years shy of 30, he’s looking toward buying a third. The takeaway for cash strapped millennials (and anyone hoping to build long term wealth from investing)? Trim expenses wherever possible, maintain a sensible budget and keep your credit clean. Careful saving can result in a down payment in a relatively short time – and once that first property is yours, its earning power can be leveraged for a mortgage to buy the next. For new graduates who are struggling with college loan debt, the picture may be a little trickier, but not impossible. Loan defaults and late payments create a blight on credit scores, so it’s important to work with lenders and investigate restructuring and loan forgiveness options. Millennials may be getting more than their share of bad press. But young investor Brian Maida shows that careful money management and a willingness to learn the ins and outs of the investing process can open doors for the start of a long-term career in rental real estate. And his strategies echo Jason Hartman’s essential advice to investors of any age: to get educated, stay in control of the process – and leverage the power of a mortgage’s “good debt” whenever possible.…
1 CW Blogcast 70 - California’s Drought: Changing Real Estate? 4:54
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4:54In the Gold Rush days, the slogan was “California or Bust!” But now, as the Golden State faces yet another year of its historic drought, “Leave California or Bust!” may become the new rallying cry for the people and enterprises facing a waterless future. And that, say real state experts, could change the US housing landscape forever. The entire state of California is under drought conditions ranging from “abnormally dry” to “extraordinary drought,” which trumps even “extreme drought” in severity. The drought has been going on for so long that not even heavy rainfall has made a dent in the statewide shortfall. If you live in greener climes, it may be tempting to dismiss the crisis as just California’s problem. It is partially self-inflicted: the state is home to over 1400 golf courses, which are draining aquifers faster than they can be replenished. The residents of Palm Springs alone use over 700 gallons of water per person per day. Fracking, Disneyland and the state’s love of water parks may be as much to blame as climate conditions. But regardless of the causes, the effects of California’s drought ripple out into the rest of the country and the world. California is America’s little known agricultural breadbasket, responsible for providing over two-thirds of the country’s fruits and veggies, and nearly a hundred percent of its walnuts, pistachios and other nuts. Those crops require a lot of water – nearly 5 gallons to bring a walnut to your table. Extended drought means fewer crops brought to market and at much higher prices, with shortages of staples like lettuce and tomatoes in some markets around the country. In order to stay profitable, agriculture concerns and other businesses may have to seek out greener, wetter locations in order to stay profitable. Moving these businesses out of California and into less populated areas of the South and Midwest could lower costs and keep profits up for years to come. And if major businesses and industries leave California, their workers will follow. Some real estate and environmental experts are predicting mass migrations out of California, not just by corporate entities but individuals too, driven by persistent shortages and skyrocketing water prices. That, some fear, could trigger a real estate collapse in the Golden State that would affect housing prices and demand at all points of the spectrum, from low end inland communities to high priced luxury homes in places like the Bay area, Bel Air and Palm Springs. Drought conditions driving people out of the state are likely to discourage new residents from moving in. Property values could plummet, even in the priciest markets. Some market watchers predict a massive wave of mortgage defaults and foreclosures similar to the situation that triggered the last big housing collapse back in 2008. California’s economy could crash, with repercussions not just for the state but also for the US economy as a whole, given the state’s high population and concentration of large corporations. Crisis for some can mean opportunity for others. The Western states near California might not reap much benefit from a large-scale migration out of California, though. Those states - Arizona, New Mexico and Nevada in particular – have their own water problems to face, and they may face a fate similar to California’s in the not too distant future. But California’s troubles could breathe new life into smaller markets in the South, East and Midwest as its businesses and residents shift eastward. As a recent article from The Natural News points out, California could lose up to two thirds of its population as its supply of sustainable water shrinks. That could create both a housing crunch and a housing boom in other areas of the country, as limited supply meets increased demand. There’s already a shortage of available housing for purchase in some areas of the country, and prices are rising, making some real estate experts worry about the formation of another housing bubble that could collapse at some near future date. The ‘California effect” could complicate that scenario as new migrants create more competition for available properties. But for investors who take Jason Hartman’s advice to diversify holdings in as many markets as possible, the coming demand could create new opportunities in the form of a bigger tenant pool and higher ROI on rental properties. It’s too early to predict the actual outcomes of California’s stubborn drought. Still, savvy investors hoping to build wealth in real estate may find gold in the coming rush - away from those hills.…
1 CW Blogcast 69 - The US Rental Market: Headed for a Slowdown? 4:18
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4:18Is the red-hot rental market getting ready to cool down? The US housing market continues to recover, fueled by promising numbers for employment and other consumer sectors. But major shifts in the housing landscape may be changing all that, as the balance tilts between renting and owning houses in 2015 and beyond. The devastating crash of 2008 that left the housing sector in tatters and created conditions for dramatic changes in the way Americans choose and maintain places to live. When a combination of reckless lending and unprepared buyers led to large-scale mortgage defaults and foreclosures, the effects were felt throughout all aspects of the housing industry. Among these effects: shortages of available houses to buy, tougher mortgage lending standards, and a boom in the rental market. Now, though, the consequences of all these things are tipping the balance in the housing market again – and that may mean changes in strategy for investors building a portfolio in rental income property. Though the housing market began to recover in 2009 and beyond, home buying stayed relatively flat – but rental demand began to surge. A sluggish economy with an uncertain job outlook meant that homeownership was out of the question for many people. Not only that, in the aftermath of the housing crisis new lending standards imposed by the government made it more difficult to qualify for a mortgage. What’s more, there were fewer houses available to buy. Construction of new dwellings ran behind demand, and exiting homes were either tied up in foreclosure proceedings or auctioned off in bulk to international investor consortiums. American home buying fell to its lowest levels in over two decades. But for all these reasons and a few others the rental market was heating up. Those who couldn’t qualify for houses or who hose not to buy for reasons both personal and economic were seeking out rentals in markets across the country. And as demand increased so did rents. But now, according to new data from the giant real-estate database Zillow and reports from other industry watchers, the rental market may be hitting its limits. In markets large and small, two trends may be responsible for the lowdown. Rents have been steadily rising in the years after the crash, until in some markets they’re currently at or near record levels. That’s not just in high end high demand areas like Los Angeles and New York – it’s a trend in mid range and smaller markets too. And while local and state laws may put caps on the amount that landlords can raise rents in a given year, property owners can keep raising rents within those parameters. In previous years, that might have been a self-defeating tactic for the landlord/entrepreneur who wanted to keep a property rented. Tenants could always choose to move rather than pay the increased rent. But now, there’s a shortage of rental dwellings in many markets. The decline in homeownership and the increased demand for rental housing means that tenants are to an extent captive audiences, forced to pay whatever rent their landlord imposes because there’s no place to move. That’s partly because of a surge in home buying by international investors with cash. In a move similar to the one that contributed to a shortage of homes for purchase after the housing crash, these groups are buying up single-family homes and complexes. Though new stats reported by Zillow show that for many people, owning a home is half as expensive as renting, some renters who could buy a home are choosing not to – perhaps spooked by the specter of the housing collapse. Still others may be ready to take the plunge into home ownership – if they can meet down payment and credit requirements. What does all this mean for investors working to build wealth in income property, as Jason Hartman recommends? The slowdown in home buying means more properties available for investors to purchase. And that means new opportunities to meet the continued demand for rental housing from a tenant pool that isn’t shrinking.…
Time was, anybody who wanted a safe and anonymous hideaway for financial assets turned to offshore banking. Swiss bank accounts and offshore havens in places like the Cayman Islands allowed depositors both legal and not so legal a way to safeguard assets from risks of taxation or seizure by the home government. But as new and proposed laws threaten to eradicate that privacy, real estate investing remains the only really private way to safeguard assets abroad. Offshore banking has always offered big benefits to foreign accountholders: privacy, security and access to other currencies and marketplaces. Until recently, account information was highly private. But now, that privacy may be fast becoming a thing of the past. The Foreign Account tax Compliance Act, or FATCA, is a US law enacted in 2010 to require US citizens anywhere in the world to report any financial accounts held outside the US to the IRS. That’s reason enough for foreign account holder to worry – but FATCA goes much further. In addition to requiring individuals to report all their accounts held in foreign banks, FATCA also requires foreign financial institutions to report information about accounts held by their US clients to the IRS as well. The move makes it much harder for individuals to hide assets from taxation, and for businesses to use “shell corporations” to conceal revenue. Though the law has been widely criticized as an attack on financial privacy, between 2012 and 2014 FATCA was ratified by a long list of countries large and small, including the major players in offshore banking, Switzerland and the Cayman Islands. FATCA has stirred controversy not just because of its potential attack on financial privacy, but also for what critics call “bullying” of other countries into compliance. What’s more, the law is seen as the next step toward a policy of stripping everyone of their right to financial privacy. Those worries might not be so unfounded. The Organization for Economic Cooperation and Development (OECD) is an international economic coalition of 34 countries dedicated to supporting free markets and coordinating domestic and international policies affecting its member countries. In 2014, the OECD stepped into the arena with an even wider ranging version of FATCA: the Global Account Tax Compliance Act, which would ensure reciprocal sharing of tax and account information among all participating nations. To date, representatives of 51 countries have signed off on GATCA, which affects citizens of any participating country with holdings in any other participating country, not just the US. And while worried citizens can still find places that haven’t signed off on either FATCA or GATCA for their money, that’s getting harder and harder to do. The creators of both laws claim that they’re aimed at eliminating tax fraud and returning missing tax revenues to their rightful owner: the government. And, they say, individuals and corporations doing legitimate business abroad won’t be penalized. But whether an accountholder is using offshore financial institutions for purposes legal or illegal, the larger concern of loss of privacy remains. As a recent article from International Man points out, these laws, along with recent disclosures about domestic spying and other government efforts to hack financial data, have essentially stripped everyone of privacy in their financial dealings, if those dealings involve money, stocks or other kinds of investment assets. But there’s one kind of asset that still offers the kind of privacy ad security formerly promised by Swiss bank accounts: real estate. Foreign real estate remains the one kind of asset that allows investors to evade FATCA and the like. As Jason Hartman always advises, it’s a hard asset that appreciates over time – and ownership doesn’t have to be reported to tax authorities. Income generated by the property does, however. And that’s a major consideration for investors hoping to generate wealth from their holdings. But used simply as an alternative to traditional bank accounts, ownership of foreign real estate by individuals is not reportable to the IRS. It also can’t be confiscated or frozen like a bank account. Government efforts to breach the privacy of individual and business financial doings aren’t new, and they aren’t always legal either. But the increasing acceptance of the US-based FATCA and the OECD’s GATCA are making those efforts entirely legal on a global scale. For securing assets and holding onto privacy, foreign real estate may become the new offshore bank account…
1 CW Blogcast 67 - For Successful Investing, Sweat the Small Stuff 4:29
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4:29It’s often said that the devil is in the details. But for investors, attention to some things that may not seem so significant can make a big difference in long-term returns. That’s the topic of a recent article and infographic from Visual Capitalist , which points out how very small tweaks to an investor’s mindset and strategies can yield more wealth. And it’s also what Jason Hartman has been saying all along: Invest early. Diversify your portfolio. Minimize risks. Keep expenses down. Though these four simple keys apply to investors of all kinds, they’re especially relevant in the world of real estate, where it’s all too easy to fall into believing myths about investing or get swept away by enticing deals and promises of big money fast. It’s commonly believed that investing is something done later in life, not an option for the young, or for those who don’t have a lot of resources ready to hand. But waiting to begin your investing career until you’re “old enough” or prepared enough can mean that you never begin investing at all. And since income property is an asset that increases wealth over time, investing early may be the bet way to lay a foundation for long-term wealth. Investing early might mean setting your investing plan in motion at a young age by establishing good credit, setting aside money to cover investment related expenses and learning all you can about the process. Or it can mean taking that first step toward buying your initial investment property once you’re financially able to do so, rather than waiting for that next promotion at work, or the date of your retirement. Diversifying your investment portfolio may not be a small thing, but putting the idea into your investing plan just might be. It may be tempting to put all your investing eggs into just one asset basket, but that can be risky if market conditions change. It’s smarter to be open to buying properties in as many different markets as possible as a hedge against precisely that – being an “area agnostic” as Jason Hartman calls it: one who isn’t blindly attached to any one market but is open to promising investments wherever they might be. Not only does a diverse portfolio offer a safety net in the event of a sudden crash, it also creates opportunities that wouldn’t necessarily be available in just one area: different tenant pools and economic conditions allow investors to rep profits in very different ways. “Risk” doesn’t mean the same thing to everyone, and some investors are more risk accepting, or risk-averse, than others. There’s risk involved in every investment, of course. But investing success depends on avoiding needless risks and doing what you can to minimize the risks you do face. Educating yourself is a basic way to do that – and it helps you stay in control of your investments. One needless risk many investors take is to leave their investing efforts to other people. While it’s important to get good advice from qualified people, the more you know, the better you’re able to evaluate that advice – and decide if those offering it are competent and honest. Keeping the dollar signs out of your eyes is another way to minimize risk. Get rich quick promises and deals you must jump on immediately may be enticing but they carry great risks. Evaluating your tolerance for risk is something every investor should do – and so is resolving to avoid needless risks. Keeping your expenses down is also key to investing success. Leveraging the power of debt is one way to do that. Using up all your savings to buy an “investment” property can end up being costly. Buying your investment properties with a fixed rate mortgage that’s covered by monthly rent payments reduces your risk and makes your own savings available for other uses. Paying attention to other ways to cut expenses can also help boost your investing returns. Managing investments directly rather than paying management companies or property managers can keep money in your pocket – and so can getting multiple estimates for repair and maintenance work. Being mindful of ways to cut expenses is a small action that can boost investing returns. Successful investors build wealth by taking both a long and a short view of the process. Some things may be out of your control – but the little things that make a difference are ones that any investor can do.…
It’s practically a given in American society that owning a home is the key to stability and success. But although the US government has spent more than two decades drafting a variety of policies to create that “homeownership society,” the percentage of homeowners has hardly changed at all. And that’s good news for income property investors ready to reap the benefits of the shift to a “renter society.” As a new article from The Washington Post points out, home ownership in the US has always represented more than just a possession. Staking out your own little plot of land was a key piece of the country’s frontier heritage. It represented steadiness and a commitment to the future. And those attitudes about homeownership morphed into the “American dream” of job, family and a secure future. The “dream” was so important that in the years just after the Second World War, government loans and other kinds of subsidies made it possible for returning soldiers to buy homes and start the families that became the famous Baby Boomers. And in the years since then, the US has clung to that belief, creating policies to boost homeownership that not only haven’t worked, but also actually contributed directly to the crash that destroyed the housing market. Recent statistics reveal that at the end of 2014, only 63.9 percent of Americans owned their own home. That’s the same rate charted in 1994. And as the Washington Post reports, those rates have gone up just one percentage point in 50 years, as shown by US census data. Though homeownership has always held a special place in the American psyche, the years between 1995 and 2005 marked a particularly aggressive effort on the part of the US government to boost home buying and promote a homeownership society that would, in theory, promote economic stability and prosperity. More homeowners, it was believed, would improve lighted neighborhoods and bring stability to minority families. Democrat Bill Clinton set a specific goal of raising the homeownership rate to 67.5 percent in 1995, and his successor George W. Bush went even further, aiming to create over 5 million new minority homeowners by 2010. Those goals were boosted by aggressive federal policies that offered low lending rates, homeownership support programs and other kinds of subsidies designed to help those who in past years might never have qualified to buy a home. And it worked p for a while. By 2005, homeownership rates had jumped to 69 .1 percent. Then came the crash. A combination of factors including aggressive homeownership policies, reckless lending and a troubled economy set many of these new homeowners up for failure. Unable to pay suddenly ballooning mortgage payments and keep up with fees, “marginal” homeowners fell into default and foreclosure by the millions – victims, in some ways, of the very policies aimed at helping them buy homes in the first place. Many of these former homeowners, their credit ratings tarnished by mortgage defaults, can’t expect to buy another home. The aftermath of the push to get as many people as possible in their own homes has left fewer people in them than before. Although some of the stringent lending standards put in place after the crash have relaxed, people aren’t buying – and that means that the US may be shifting from a “homeownership society” to a renter’s culture. That suggests a change in American attitudes toward renting, which in a society in love with homeownership has always carried a bit of a stigma. Renting is often seen as temporary, transitory and unstable – something you did on the way to buying your very own home. But economic reality and shifting attitudes suggest that may be changing. As more and more people opt to rent long term either by choice or circumstance, the US may be headed toward a housing profile more like that of many European countries, where homeownership doesn’t convey any particular status or cultural worth. And as Jason Hartman says, that’s good news for smart investors, who can expect to reap long-term returns from a growing pool of renters that shows no sign of shrinking.…
1 CW Blogcast 65 - Internet Real Estate Sales: Changing the Game? 5:18
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5:18Online real estate transactions now account for over half of all housing purchases in the US alone. The Web offers a place for buyers, sellers, agents and investors to do business that bypasses the traditional “brick and mortar” style of doing business – and it’s changing the game for all concerned in ways both good and bad. The online world of real estate takes many forms. Only databases provide a place for agents to list their services and properties. Buyers can search by price, location, agency and more. These sites serve agents and brokers who make the initial contact with a prospective buyer through he online portal, but then the rest of the transaction takes place in the traditional way. Those big online listing sites also serve a new breed – real estate agents, buyers and sellers that exist only online. The entire property transaction can take place electronically, without any parties ever meeting in the physical world. Online transactions are fast and convenient. They can be conducted from anywhere in the world – an appealing prospect for investors interested in buying properties abroad or those who want to diversify their portfolio at home – a strategy Jason Hartman recommends. But as a recent article from Business Insider reports, those very features are creating conflict between “brick and mortar” real estate agencies and those doing business purely online. The parties involved in the current conflict are UK_based OntheMarket and a host of competitors angry at the site’s success at poaching their clients with lower listing rates and more services. While that might not seem like much oaf a concern to housing market watchers elsewhere in the world, it points up the fact that online real estate transactions continue to play a major role in both commercial and residential real estate purchases throughout the world. And because that’s true, all parties involved must learn how to navigate the ups and downs of this rapidly changing landscape. The world of online real estate includes options as diverse as massive databases of properties and agents, auctions, agency and individual agent websites, and private transactions conducted directly between buyers and sellers through classified ads and even social media. Transactions can be conducted completely online, or go offsite into the physical world after the initial contact is made. Title searches and many other aspects of closing a deal can be done online too – and thanks to social media all parties can stay in frequent, real time contact. Properties can change hands via online funds transfers to private accounts or sites like PayPal in virtually any currency – even Bitcoin. But s the frustrated agents in the Business Insider piece point out, bypassing the tried and true system of buying and selling property comes with its own set of risks. Entities that exist only online can be legitimate –or not. They can vanish in a heartbeat, often after collecting large amounts of money from unsuspecting investors with dollar signs in their eyes. That’s what happened in a recent scam in which a bogus real estate investment company sold eager investors on a plan to buy up cheap houses in distressed Detroit – and then vanished, taking investors’ funds along. Because the entire operation was conducted online, once it closed up shop, the investors who had been bilked had virtually no chance of getting their money back. The online world is home to other scammers, too. In a variation on the old “Nigerian prince” scheme, scammers post up heart-tugging ads about hardship and tragedy, begging for someone to sell them a property outside their country. Gullible investors put up money – and never see it again. Listing scams also abound. Scammers snatch legitimate listings from the large databases and relist them under their own name, selling and re-selling the same property over and over again until someone catches on. The new popularity of using Bitcoin for online transactions of all kinds – not just for real estate – also opens the door for scams. Bitcoin can be used for just about any transaction that both parties agree upon, and that includes buying and selling homes and other big-ticket items. It’s becoming increasingly favored for international transactions, especially when one or both parties hail from countries with unstable currencies. But Bitcoin is anonymous and untraceable. If a deal goes bad there’s no recourse for either party. There’s no way to stop a check, trace a deposit, or do any of the things that can protect a transaction involving traditional currencies. And bypassing the safeguards of traditional process creates risk too. While real estate professionals, buyers and sellers of the traditional variety may complain, but online property transactions are claiming an ever-bigger piece of the real estate pie. In this ever-changing world full of conveniences – and risks – it pays for investors to take Jason Hartman’s advice to stay informed – and in control. (Featured image: Flickr/mikhailchurykin) Source: “Real Estwate Agents Are Waging War Against the Internet.” The Economist via Business Insider. businessinsider.com 20 Feb 2015 Read more from Jason Hartman: US Dollar Is Most Crowded Trade in the World Cash Flow Investment…
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