Archive for November, 2010

Intero Insider: ‘Tis the Season for Home Buyers

By Gino Blefari | November 30th, 2010 0 Comments

It may be the best time of year for traditional retailers who find their bottom lines moving from red to black, but in the housing industry, sales tend to slow down when the yuletide rolls in. Nobody likes to move during the holidays, but if you’re in the market to buy and don’t mind the timing, you may actually have the best timing of all.

While a recent Fannie Mae survey shows more consumers are more negative now about buying a home, there are still plenty of folks looking for a house to own. And the great news is that deals abound!

Here are three things that home buyers have going for them this holiday season:

  • Inventory galore: The inventory of homes for sale of course depends on your market, but markets across the nation generally are experiencing high inventory levels. This is not exactly a great thing for the overall health and sustainability of the market and economy, but it is a good thing for those buyers who are ready to make a move.
  • Historically low interest rates: I can’t really stress this enough – the low rates we’re seeing on long-term mortgages are incredible! Forget about missing out on the home buyer tax credit earlier this year – these low rates will save you even more cash in the long run than any government incentive so far.
  • Relaxed competition: With high inventory comes less competition. Again, this isn’t great for home sellers or for sustaining values, but as a buyer you’ll find that you have more negotiating power. Use it wisely.

Here’s what this season’s buyers will need to watch out for:

  • Stellar credit gets the best deal: Sure, rates are incredibly low but you’ll need a solid credit score to get the best terms. You’ll also need a ton of documentation so it’s best to prepare that stuff ahead of time.
  • Cash needed: This is true now and pretty much always – more cash will enable you to get a better loan and make for an all-around better closing experience.
  • Local market conditions: Is your market still on the decline? That’s no reason to wait to buy, but it’s something you should take into account when making your offer.

Bargains abound at all the top stores across the nation. And this year, the “real estate” store is not much different. Buyers indeed have the upper hand in many neighborhoods. Don’t let the holidays derail your home hunt entirely – you may just miss the sale of the century! Talk to an Intero agent today about what’s available near you.

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Own a little piece of tropical luxury

By Teressa Francis | November 24th, 2010 0 Comments

What do the words luxury, relaxation, seclusion, water, sun, tropical and calm all have in common? Don’t know, but you’re dying to find out, right? They all describe the beautiful Aquaba Resort in Vietnam.

Located in the Binh Thuan province of Vietnam, Aquaba Resort is a waterfront collection of 130 exquisitely finished townhouses and apartments. As the name suggests, Aquaba is a combination of east and west.

“Aqua” meaning “Water” and
“Ba” meaning “Three” in Vietnamese

The name “Three Waters” resort has been chosen to reflect the architectural definition and environmental nature of the project, which revolves around the extensive presence of water.

Location

Binh Thuan Province is a coastal province in the southern part of Vietnam and is home to several famous cultural and historical sites including Co Thach Pagoda and Mui Ne. Enjoying warm weather all year round it is the driest province in Vietnam with only 10% humidity during most of the year, making it ideal as a resort location. Its 192 kilometers stretch of picturesque coastline and magnificent natural surrounding scenery has seen it become one of the most favored destinations by both domestic and overseas vacationers.

One of the more popular destinations amongst tourists in the province is Mui Ne. The 21 kilometer stretch of golden sand along Mui Ne, groves of coconut trees, vast fields of dragon fruit and the famous sand dunes shaped by the elements of the wind provide an impressive attraction for all visitors. It is located 200 kilometers east of the hustle and bustle of Ho Chi Minh City and takes three hours to drive by car.

The Lifestyle

Water plays a vital role in both the design and the landscape of the project and its residences, unifying the points between external and internal areas. The project has been designed to provide an array of contemporary water features, from the gardens to the fountains, the meandering lagoons and modern poolscapes.

Set amidst lush tropical gardens and bountiful water the resort has been designed to provide a unique family experience typical of Asian cultures. Each individually designed townhouse and apartment is equipped with its own kitchen and private terrace or deck to allow unparalleled water views.

Apartments

All apartments feature generous open living areas, with clean lines and modern simplicity being the key design element.

A luxurious collection of studio’s, one, two and three bedroom apartments facing south-east, each with their own private terrace or deck.

Townhouses

Each townhouse residence features generous open plan living and dining areas downstairs and 3 luxurious bedrooms upstairs, master with ensuite, and all with their own private deck opening onto the tranquil swimming lagoon.

If you are interested in owning your own little piece of tropical luxury, please contact Intero Client Services for more information.

Intero Client Services
866.334.7356 (call from US only) or internationally at +1 408.342.3062.

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Intero Insider: Cut the Mortgage-Interest Deduction Now? Say It Isn’t So

By Gino Blefari | November 23rd, 2010 1 Comment

The mortgage-interest deduction is the latest housing policy Congress is targeting for possible cuts that could have a deep effect on the nation’s housing recovery. For California, this feels a lot like a “kick us while we’re down” move by Congress.

Don’t panic yet, though. Talk is cheap and this is an issue that has come up before – each proposal getting nowhere. Let’s look at what’s happening here.

First, what is the mortgage-interest deduction? It’s part of the tax code that enables homeowners to deduct the interest they pay on their mortgage from their income tax bill each year. It provides a nice deduction for those in high-cost areas like California and is a significant incentive for home buyers as they know they can count on this deduction to help reduce their annual tax bill.

Sounds good, right? So why cut it?

The mortgage-interest deduction is the largest single subsidy for housing in the U.S. and is projected to reduce tax revenue by $131 billion in 2012. It’s easy to see why Congress would be interested in gaining back some of the revenue.

The proposal that sparked the whole discussion early in November would reduce the amount of mortgage debt on which a borrower could deduct interest paid from the current limit of $1 million to $500,000. Also, borrowers could no longer deduct interest paid on home-equity loans or on mortgages for vacation homes.

The upside is the immediate pool of revenue this would create for a Congress that’s dealing with major deficits. However, pulling it from the hands of homeowners is a pretty bad move that could seriously derail an already-slow housing recovery.

With more than 11 million U.S. households now holding a mortgage worth more than their home, according to CoreLogic, taking money from homeowners is an obvious bad idea. And even though the proposal is simply to lower the current cap, it’s still a pretty drastic move that would significantly impact different segments of the market.

Proponents of the cut argue that only higher-income homeowners actually benefit from the deduction because those in the middle or lower-end tend not to itemize deductions on their tax bills anyway – opting instead for the standard deduction. They say that high-cost states are the ones that would be most impacted by a move like this.

I say it all depends. Many times moves like this will do more damage by sheer perception than actual numbers. The government takes away one of the largest incentives for buying a home. That’s bound to crush more consumer confidence.

So please, Congress. Think before you act on this. Housing is a work horse in our national economy. Don’t make a hasty move in order to fix another problem.

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Paradise Awaits You

By Teressa Francis | November 22nd, 2010 0 Comments

As Intero expands internationally we often come across international investment opportunities we think you’d enjoy.  We recently found this great opportunity for those of you who dream about white sandy beaches and lush tropical islands.

Villaguna Residence and Spa is a unique development located on the east coast of Koh Yao Noi Island situated in the Adaman Sea, Thailand. It’s secluded yet close to the mainland and just 25 minutes by speed boat from Ao Po Grand Marina, Phuket.

Villaguna boast 33 villas, with models featuring 1-4 bedrooms and luxury pools. Villaguna also offers and impressive array of facilities such as restaurants, bars, business center, fitness center, mini-marts and massage & spa facilities and a private speed boat services that connects Villaguna to Phuket.

With a 120 meter stretch of white sand beaches and the bay of Phang Nga’s magnificent seascape, the residents of Villaguna will enjoy a tropical island ambiance with all the modern comforts.

Have we sparked your interest?

For more information contact Client Services at 866.334.7356 (call from US only) or internationally at +1 408.342.3062.


Intero Insider – 2011: Slow growth will end the decline

By Gino Blefari | November 17th, 2010 0 Comments

We are about to start a new year that will prove positive upward motion for both our state and local San Francisco Bay Area economy. We’re going to see some job growth, which will help to fuel initial growth in the housing recovery. But it’s going to be a slow start in 2011 – a year of transition is a good way to describe it – and we may not always feel like we’re making progress because of the slow speed.

Despite how slow or fast we’re moving, we are saying goodbye to the bottom and setting our sites on upward movement in 2011.

For housing, I expect to see a rise in sales volume and median prices in California in 2011 from our bottom year of 2010. I think a lot of buyers who’ve been waiting on the sidelines – either for a more secure employment situation or a signal of the market bottom – will finally move and buy.

We’ll continue to see high levels of foreclosures, but the market will continue to work through them.

In the Bay Area, there are a lot of developments that make me feel optimistic about 2011. Facebook game developer Zynga recently signed the largest lease for San Francisco office space in five years. Facebook itself recently announced a joint $250 million fund for social application developments. Stocks have been surging at Oracle, eBay, Google, Intel and other Silicon Valley tech powerhouses. And while sales volume has lagged, home prices in the Bay Area rose for 13 straight months through September, according to MDA Dataquick numbers.

These are all very positive signs that the Bay Area economy is already looking up, though we need to be mindful that miracles are not going to happen in 2011.

Here is what I am projecting:

Home buyers: Expect the loan process to be long and strict. You will need cash, a solid credit history, appropriate salary and job security. You won’t have the lowest of the low interest rates forever so you will come off the fence in droves in the spring of 2011. This rush may even surprise you as you find yourself competing for offers.

Home sellers: The folks at the California Association of Realtors have discussed the tale of two housing markets in our state: the high end versus the low end. How you come out in 2011 as a home seller really depends on which market segment you are in.

Sales of properties valued at less than $500,000 have largely been distressed properties and banks are expected to release more inventory next year. This means sellers of properties in this price range will continue to have a lot of competing inventory.

Meanwhile, sales at the high end – above $500,000 – have seen and will continue to see constraints from tightened lending.

The prognosis? It won’t be the best year to be a home seller in 2011, but be patient as there are buyers on the sidelines waiting to jump in.

Homeowners: Underwater owners are a wildcard in the forecast next year. I don’t see the trend of walking away from a mortgage ending completely, but hopefully some of the positive economic news will create a much needed sense of security for these folks.

The transition we need

We have a lot going for us in 2011. Our state’s sheer size of nearly 37 million residents, expansion of the exporting and technology sectors, and an expected rise in personal incomes are all factors we have working for us. We are still the eighth largest economy in the world with a gross domestic product of some $1.8 trillion.

It takes a lot to keep us down, and it will take a lot to pull us back to normal. 2011 won’t be remembered as a breakout year of growth, but it will be the year we turned the economy back around – the year we needed to transition from decline to moving up.

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Intero Insider: It’s Carpe Diem for Investors

By Gino Blefari | November 9th, 2010 0 Comments

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”  -Warren Buffet

Hopefully by now we’ve all learned that real estate is not a get-rich-quick game. But with about a third of all home sales being foreclosures right now, there’s definitely a nice field for investors to play in.

Maybe you are an investor looking to buy up some distressed properties on the cheap. Or maybe you’re an agent dealing with a lot of clients who are interested in getting into some investments. Either way – these properties are a substantial part of the housing market right now. Most people are expecting the market to get a little worse before it gets better – which means even more foreclosures coming to market.

Freddie Mac recently announced a $4.1 billion net loss in the third quarter. The mortgage finance company owned nearly 75,000 homes at the end of September due to foreclosure. And that’s just one part – the big banks own loads more too.

With more foreclosures expected, are we looking at a potential fire sale of properties? If so, you’ll want to be ready. But how? A recent New York Times story detailed the long, complicated and frustrating process of buying a foreclosed home. It certainly takes persistence and preparation.

What are the keys to success when buying a foreclosure property? First, you’ll need a strong support team – enlist an agent who truly knows what they’re doing as buying a bank-owned home is definitely not the same as buying a home from an owner or builder.

Second, have cash and lots of it. You will need it for negotiating the best price and closing the deal.

With your cash in hand and experienced agent by your side, you can then proceed to research your local market. This can be tricky as many reports in the news these days seem to paint confused or conflicting pictures of the housing market. Put your blinders on and focus on your immediate location. Look at not only the housing data, but also the overall economic data – are there jobs or expected job growth over the next five to 10 years? What kind of schools are around? What is the area’s biggest industry and what is the outlook for that industry going forward?

Of course, there’s a lot more to it than this. My point is that even though we’re still staring at a long recovery, don’t think you have time to jump into foreclosure investing. Now is the time – because once that bottom is called, the masses will be back in and you may find that you’re too late to the party.

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Intero Insider: Global house prices trend up

By Gino Blefari | November 3rd, 2010 1 Comment

Real estate is one of the most local businesses around, but it’s interesting to take a look outside at the global market and see what’s happening. What are sales and price trends like in the world’s other top economies?

A recent round-up from The Economist shows that prices are on the rise in most markets across the globe. Only four of the 20 markets tracked by the publisher saw declines in the third quarter from a year ago. And only Ireland’s market worsened.

What does this mean for us?

Well, America’s FHFA index, which excludes houses that are financed with large mortgages, was also down. But The Economist notes that the Case-Shiller national and 10-city indices rose modestly.

Our real estate market in the U.S. is certainly not worsening. And compared to the rest of the world, we’re not doing that badly either.

According to the National Association of Realtors, over $40 billion in U.S. real estate was sold to foreign buyers last year. When you think about that, it suddenly becomes really interesting to see how foreign markets are performing and how various markets can affect purchase decisions for intercontinental buyers.

Global real estate is something I’ve particularly been interested in as I see a wealth of opportunity. Last summer, Intero Real Estate’s Chairman Robert Moles and I had the pleasure of speaking at two prestigious global real estate seminars in Singapore and Hong Kong to talk about this opportunity and share our insights as a company that’s been growing and succeeding through extraordinarily difficult times.

To make sure Intero is ahead of the curve, we just announced a deal in which Intero Real Estate will syndicate all property listings to the iProperty.com network of websites. This means that all listings will now get exposure to buyers across Singapore, Malaysia and Hong Kong.

Global real estate is an important indicator to follow as we look at the state of U.S. housing. Take a look outside the U.S. and you may find our market looks a little different. And if you’re really into seeing global price trends and how various nations compare to others, check out The Economist’s Interactive Global House Price Trends tool.

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Home Preservation Seminiar: Thursday, November 4th

By Teressa Francis | November 2nd, 2010 0 Comments

As part of our ongoing effort to provide service and value to our clients and their friends, family and colleagues, we would like to invite you  to attend an upcoming seminar we are holding for distressed homeowners with questions about how to keep their home.

Get the Facts to Get Back on Track: Foreclosure Alternatives, 2 out of 3 of homeowners don’t know where to turn to avoid foreclosure.  If you or someone you know is struggling with their mortgage this could be the most important information right now….

The real estate and mortgage crisis is no longer isolated to one segment or area of the real estate market. Right now, all across the Bay Area, 1 in 8 homeowners are behind on their mortgage. Unfortunately many people already are or soon will find themselves in a position of being unable to make their payments and facing the prospect of foreclosure.   The good news is, for people that take action and get informed, there are things that can be done to get back on track.

At Intero Real Estate we recognize the urgency these challenges present and we are responding to the needs of our community. Join us for a FREE upcoming live seminar and featuring legal, bank, credit and real estate experts who will inform you about what options are available and their various effects.  If you prefer to be more discreet about your situation or can’t make it for the live event, feel free to join us via webinar (see registration details below).

Free and open to the public.  Seating is limited, reservations required.

Thursday, November 4, 2010

6:30-8:15 PM

Intero Real Estate Services, Santana Row Office, 377 Santana Row Suite 1180 San Jose, located between Peets Coffee and Eli Thomas off Olsen Drive.  Register by calling Intero at 408 357-5700 or online at www.InteroSeminar.com.

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