California Real Estate Market

INTERNATIONAL TIME TO INVEST IN REAL ESTATE IN THE UNITED STATES AGAIN In today’s global economy, corporations decide where to invest by comparing expected rates of return in different countries. Lower tax rates would increase the expected rate of return by investing in the United States. The new tax law creates a single corporate tax rate of 21%, beginning in 2018, and repeals the corporate alternative minimum tax. Unlike tax breaks for individuals, these provisions do not ...expire. The top corporate tax rate is currently 35%, the highest rate of any large, developed country. Combined with state and local taxes, the statutory rate under the new law will be 26.5%, according to the Tax Foundation. That puts the U.S. just below the weighted average for EU countries (26.9%). The worldwide average top corporate income tax rate (accounting for 173 countries and tax jurisdictions) is 22.9 percent, 29.8 percent weighted by GDP. The new U.S. Corporate tax designed by the Trump administration drop from 35% to 21% while GDP corporate rate world wide average 29.8%. Investing in United States real estate now makes more sense than ever before. As an example look at what the baby boomer investment projection shows because of the tax cuts in the United States. Perfect for international corporate and private investment in American housing and commercial real estate. Etchart Consulting Group Inc. Clovis CA 93611 (559)681-8976

SOLID INVESTMENTS FOR THE CALIFORNIA SENIOR POPULATION REAL ESTATE STILL THE SAFE ROUTE The housing industry create a powerful investment environment and position the senior citizen for consistent profits in structured opportunities with rentals and passive income that increases securely without the risk of stock market dangerous fluctuations and corrections. People always need a place to live and as the last great recession proves, families that had good jobs and income sti...Continue reading

LIST OF DECLINING HOME PRICES MARKETS IN THE UNITED STATES YEAR TO YEAR AS OF 2017 RANK LOCATION PAST YEAR 2016 342 UTICA-ROME NY 0.0%...Continue reading

DOES IT PAY FOR A BUSINESS TO GO ABOVE AND BEYOND WHAT IS EXPECTED FROM A CLIENT? NEW STUDY FROM UC San Diego behavioral scientist Ayelet Gneezy and University of Chicago business professor Nicholas Epley stays and new fact on doing business. The results of this study surprised us since we make it a point to under promise and over deliver when possible. As business and investment consultants it is our pleasure and our mission to assist our clients grow and have their gratitud...Continue reading

ETCHART CONSULTING GROUP INC. PULSE IN THE COMMERCIAL REAL ESTATE MARKET Investors and lenders are proceeding cautiously amid forecasts for slower growth in the months ahead. The maturity of the market cycle is garnering plenty of attention. The U.S. commercial real estate market is now eight years into its current economic expansion, which is lengthy by historical standards in the commercial investment market. ...Continue reading

CENTRAL CALIFORNIA HOMEOWNERS BEWARE OF HIDDEN LIENS FROM THE H.E.R.O. ENERGY LOAN PROGRAM Lately in our practice assisting clients selling and upgrading their rental real estate portfolio, we have encounter some big problems with the HERO-finance pace program in California. Case in point, as one of our client accepted an offer in this hot rental market in central California for one of their properties, we found that in the past they had done some improvement work to the pro...Continue reading

New on the market. Very nice, newly updated, 3 bedroom, 2 bath, 1330 sq. ft. home in the Temperance/Shaw Area. Call Vicktor Etchart for more info or for an appointment to see this home: (559) 681-8976

CALIFORNIA HOME OWNERS AND INVESTORS BEWARE! The state of California has imposed new laws and regulations affecting residential and commercial owners and investors throughout the state effective immediately. Starting 2017 the law requires installation of water conserving plumbing fixtures if you own a single-family home, and it is built before 1994 weather or not it is being sold....Continue reading

CALIFORNIA 1031 EXCHANGE REAL ESTATE LAWS FOR 2017 DO YOU KNOW WHAT A 1031 EXCHANGE IS AND WOULD IT BENEFIT REAL ESTATE INVESTMENT PORTFOLIO? What is a 1031 Exchange?...Continue reading

TO BUY A HOME OR NOT TO BUY A REAL ESTATE IN 2016 According to the economists and other experts, 2016 is the year to take the plunge. Here are some of the reasons why;... 1. EVEN THOUGH MORTGAGE RATES are likely to start going up, you haven't missed your chance to get a deal on a great mortgage loan rate. 2. HOME PRICES ARE FINALLY stabilizing. According to economist Svenja Gudell, prices have been on the rise for awhile now, but they are slowing down in 2016. However, prices are expected to rise after the elections 3.5%. If not done now, low income buyers may find it tough to do it later said Jonathan Smoke, chief economist for Realtor.com. Investors, on the other hand will be able to purchase many more rentals this year to serve the buyers that were not in a position to take advantage of the market low rates and home affordability factors. Prices in hot markets like New York, Boston and San Francisco are not expected to pull back as much this year. 3. MORE HOMES WILL HIT THE MARKET IN 2016 The slowdown in home prices will prompt more owners to list their homes said the economists. Because of the price appreciation they have experienced, you will have more sellers put homes on the market 2016-2017. 4. RENT PRICES ARE EXPECTED TO CLIMB NEXT YEAR Therefore in most cities, buying will be a lot cheaper than renting. Economist Ralph McLaughlin said that interest rates need to rise to around 6.5% for the cost of buying to equal that of renting on a national level. 5. RENTAL EXAMPLE IN THE FRESNO COUNTY CALIFORNIA AREA Today an average newer 900 to 1300 sq.ft. home or apartment in the desirable 93711 zip code of Fresno rents between $1000 to $1400 per month. The same square footage home valued at about $185,000 could get a mortgage at about 4% with an average credit rating of 700 FICA at about $1196 per month including PMI (Private Mortgage Insurance) and annual taxes. Each buyer has different and unique alternatives in the mortgage pr-approval process. Fresno, Clovis, Madera, and our foothills have amazing properties to choose from. Contact Vicktor Etchart MPhD of the Etchart Consulting Group and Guarantee Real Estate for more information regarding real estate investments for you particular situation. Residential, Commercial, International Vacation real estate or active businesses for sale in our area. This forecast market information was compiled by the Etchart Consulting Group for the reading pleasure and information of our friends and clients. The Etchart Consulting Group has investment opportunities for vacation real estate for sale in Costa Rica, Uruguay, Mexico, Spain and Brazil at the moment. Contact Vicktor Etchart of the Etchart Consulting Group / Guarantee Real Estate for information on central California and/or international real estate first time or season buyer/sellers opportunities. (559) 681-8976 or email at [email protected]

Are Negative Interest Rates Coming To A Bank Near Us? World banks are talking about the benefits of negative interest rates. Testing scenarios have been tried in Japan and Greece so far. Most small investors have not been exposed to the practice and are rightfully confuse and distrusting regarding the outcome of such maneuvers specially with the last eight years of Wall Street and banking frauds and scandals where not many have been prosecuted and many have enjoyed millions...Continue reading

CALIFORNIA CENTRAL VALLEY REAL ESTATE MARKET PROGNOSIS FOR 2017 We have seen inventory come back at a slow pace in the California central valley. Buyer demand is strong enough that it will continue to keep the market moving as we go through the next 12 months. Last year the biggest news was the increase in mortgage rates. The rate rise is sudden relative to the slow pace of any changes over the past six or seven years. We witness this occur immediately after the election re...Continue reading

TINY HOUSES COMING SOON THROUGHOUT FRESNO CITY A tiny house was displayed at Fresno City Hall last January 14th to celebrate the fact they are now legal in the city. Fresno will allow the homes on wheels to be placed in the back yards of most homes. However, they must be put on lots of at least 6000 Sq. Ft. The houses can be use for additional family members, or even rentals. City Mayor Ashley Swearingen stated We are the first city in the nation to actually write into its ...development code authorization for tiny homes. This is a hot new trend in the housing market. The house displayed in Fresno CA was made by the Tiny House Company in Fresno and they expect to start taking orders in Fresno soon. The custom made homes cost anywhere from $45,000 to $75,000 and are between 200 to 400 sq. ft. in size. While the house are built on wheels, they are also built to regular home standards and are NOT considered a mobile home. This information was compiled for the reading and information pleasure of clients and friends of the Etchart Consulting Group in Clovis CA.

CASHLESS SOCIETY ECONOMICS IT IS COMING OUR WAY WHAT IS THE DANGER TO OUR SOCIETY GOING CASHLESS? A New Research By Westpac States Australia to turn into cashless society by 2022. Westpac is Australia's first bank with a range of innovative financial packages to support personal, business or corporate banking needs. The report shows Westpac predicting that Australia's reliance on smartphones will see the nation be cash free by 2022. ...Continue reading

UNDERSTANDING HOW THE ECONOMY WORKS TO PREDICT WHERE WE ARE GOING IN 30 MINUTES http://www.nationaldebtclocks.org/#debtexplained

UNDERSTANDING THE REAL ESTATE APPRAISAL PROCESS The following example was designed to walk our client(s) through the appraisal process and items considered in the appraisal process for understating simplification of Objective, Purpose, Scope, Methodology, Date of Value and Owner of Record for lending or estate valuation for taxable, mortgage or estate purposes in the state of California. OBJECTIVE OF APPRAISAL... The objective of this appraisal is to estimate the defined value of the specified interest in the subject real estate as of the dates of value. READ MORE: http://vicktoretchart.com//18-understanding-the-real-estat

Homeowners in southern California have been particularly hit hard by drought mandates. Single family homeowners have responded by replacing 150 million square feet of lawn with artificial materials, sand and or rock in an effort to avoid fines and surcharges on their water bills according to the state of California data. State residents racked up water conservation numbers that defied conservation projections. Twenty seven percent reduction last June and 31.3 percent in July.... While single family homeowners have sacrificed their paradise type southern California lawns are doing their part to save the elusive life element, multifamily residents are lagging far behind. On average California apartment buildings used 6% less water in the first half of 2015 compared to the first half of 2013 according to a two year study performed by the Boston based building efficiency software provider WegoWise and reported by the California Association of Realtors C.A.R.. The study shows that typically, multi-family building owners pay for their building's water bills rather than passing on the cost to tenants as a financial incentive to rent their units. Without the financial restrictions that paying the bill represents, tenants often do not conserve water through behavioral changes. However, apartment owners that do implement targeted upgrades can meet statewide goals while lowering utility expenses and boosting cash flow.

SOMETHING INVESTORS NEED TO KNOW Foreign Interest in California and Florida Real Estate led by Brazil. With currency crises and political instability affecting Latin America and Europe, investors are eager to put their money into safer investments, including U.S. real estate. ...Continue reading

UNDERSTANDING UNITED STATES TAXES vs. OTHER NATIONS AROUND THE WORLD We all complaint about paying taxes. Most complaint about that government, this government, your government, my government. The truth is that people pay voluntarily to keep their nation, city, burrows , clean, safe and organized. We take pride in our communities and to keep them the way we want them for ourselves and our families we pay taxes. The challenge to this notion comes when the elected officials tha...Continue reading

How the predictions for 2015 are doing 6 months into 2015 for California? California Housing Market Price Predictions for 2015 Here are the California housing markets with the highest projected appreciation through May 2015, from least to greatest: Salinas: 10.0% El Centro: 10.3% ... Santa Rosa: 10.5% Merced: 11.1% Hanford: 11.8% Yuba City: 12.2% Madera: 12.3% Stockton: 13.5% Riverside: 15.4% Modesto: 15.9% (highest in the nation) I should stress these are merely predictions for California real estate markets. So don’t bank on them, as our legal folks would say. With that being said; In February, prices rose 4.2% from the year prior, according to the S&P/Case-Shiller U.S. National Home Index. And some local markets are on fire, with bidding wars and offers above asking price becoming common. In San Francisco, 74% of homes listed earlier this year, sold within two months of hitting the market, a recent Trulia report showed. The median asking price of the City by the Bay was $1,099,000. Several other areas in California, along with Seattle and Salt Lake City are experiencing similar real estate booms, the report found. If prices continue to outpace inflation and income in these areas, that can eventually become a problem. "Price increases -- even in the most desirable places -- can't continue to outstrip income growth forever," said Keith Gumbinger, vice president of HSH.com. "At some point, no one will be able to afford a home." What's driving prices higher this time around you may ask?: Homeowners aren't selling: Current homeowners list their home to either trade up or downsize, opening up inventory for first-time buyers to come in. One can't happen without the other. "The whole train has to move at the same time," said Gumbinger. Farm land and pastures are going uo in value as well in spite of the drought in our golden state. When you have questions regarding the investment of your real estate dollars give us a call. The first consultation is free and there is much more to gain by talking to professionals in the field. Etchart Business & Real Estate Consulting California & International Real Estate investments. [email protected] Disclaimer: This story contains forward-looking statements (forecasts and predictions) regarding the California real estate market in 2015. Such statements were based on third-party data and do not necessarily reflect the views of the researchers in the commercial real estate investment arena. We make no claims or assertions about future housing and economic conditions.

ACCORDING TO THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA) NATIONAL AGRICULTURAL STATISTICS SERVICE... Since 2012 California’s average farm real estate was valued at $7,200 per acre, based on surveys of California farmers and ranchers even under drought conditions. This is an all time record high for California and $300 above the previous record set in 2011. Annual farm real estate values have continually increased since 1994, the last time it dipped below the previous ...Continue reading

Beautiful vacation home in Bass Lake, CA. This is a two story 2 bed 3 bath home with a bar, dining room and living room, two decks with views of the mountains and redwoods. Real wood fireplace and much more. Price includes all furnishings and appliances. HOA provides snow removal in the winter months. All of these for $229,000. Call your broker or call us direct to get this great vacation property in the California central valley mountain lakes.

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California Land Values are on upward trend for 2015 Our valley farmland is going up in value only in areas where the availability of water is verified. CREDIT CONDITIONS Farm Credit is at 65% or below unless is consolidated with the buyer's other farm land as collateral....Continue reading

The STATE OF CALIFORNIA IS LOOKING FOR MORE MONEY TO KEEP UP THEIR SPENDING AT ANY COST. The latest attempt is aimed to nickle and dime the battled housing market, developers and reluctant new home buyers with unscrupulous extra fees. Thank you Governor Brown. You really care about the health of our economy! NOT The extra fee of $268 is the latest attempt by California and other states to milk more money out of their citizens. We can expect all blue states to follow suit as ...the trend more taxation sweeps the country following Washington's example. The $268 dollars is the amount saved at the closing table by the average Kansas home-buyer due to the Kansas Association of REALTORS^' successful campaign to repeal the state real estate transfer tax. Kansas became the 15th state to ban real estate transfer taxes, but the first to ever to repeal such a tax... HISPANICS; The latest Americans to go after what is left of the American dream of home-ownership. Five Million is the number of new Hispanic households expected by 2020, according to the 2013 State of Hispanic Home-ownership Report. As the fastest growing segment of the population, Hispanics represent a significant portion of the 12-14 million new households expected by 2020.

WHAT YOU NEED TO KNOW REGARDING COMMERCIAL REAL ESTATE FORECLOSURES Question: What is the One Form of Action Rule (also known as the One Action Rule and the Single Action Rule)? Answer: In California, a commercial real estate lender cannot waive the security and just file suit against the borrower. Instead, one of the aspects of California's "one form of action" rule is that the lender must first collect the value of the security by foreclosing its deed of trust. The one form... of action rule is also referred to as the "one action" rule or the "single action" rule. There are two ways to foreclose in California. We commonly refer to them as judicial foreclosure and nonjudicial foreclosure. The one form of action rule requires the lender to pick one or the other. For instance, the lender cannot conduct a foreclosure sale and then sue the borrower for the deficiency because that would be "two" actions. As courts have invoked the one form of action rule over the years, it is very complex, but for our purposes, the one form of action rule means that the lender must choose whether to foreclose judicially or non-judicially. Short selling the property in time could be another alternative to avoid foreclosure. Negotiating the transaction requires time, knowledge and patience. If you are in this situation or have legal questions regarding a situation such as the one presented above, contact your real estate consultant, real attorney or Certified Public Accountant for advice. We can refer you to a few in our area as well.

MORE U.S. CITIES ARE PREDICTED TO FOLLOW CALIFORNIA’S BANKRUPTCY ALTERNATIVE. According to a report from CNN money news, three cities in California have filed for bankruptcy in the past few weeks and more filings are expected to follow. The last city this week to file in California was San Bernardino following Stockton and Mammoth Lakes. California is not alone in the upcoming wave of cities that can’t keep up with salaries and expenses due to drastic tax revenue reductions... generated principally by the housing crisis. Municipalities around the country are considering the bankruptcy protection alternative to cover their expenses while tax revenues continue to decline possibly leading to more filings nationwide. CNN money news interviewed business professor Peter Navarro of the University of California Irvine who stated This is not the end. This is the beginning, as cities see it being done, it will give them the idea to do it. Vallejo California filed for protection back in 2008. The city of San Bernardino’s City Council voted to file for Chapter 9 bankruptcy as the interim city manager issued a report that stated, The city has reached a breaking point. Specifically, the municipality of 211,000 residents was facing a $45 million shortfall. The city of Stockton with very much the same predicament with 292,000 residents, filed for bankruptcy in late June after their several months mediation with creditors was unsuccessful with a $26 million budget shortfall. Stockton Mayor Ann Johnston stated in an press release interview; This is what we must do to get our fiscal house in order and protect the safety and welfare of our citizens, as she was announcing the filing. However, she sounded optimistic by saying. We will emerge from bankruptcy with a solid financial future. The city of Mammoth Lakes should not be considered with the other two fillings according to experts because their circumstances before the filling were unusual. Do to a property developer winning a $43 million judgment against the town, which has a bit more than 8,000 residents. By using the Bankruptcy tool, cities can keep their police and fire department units on the street as they work out their financial responsibilities according to the executive director of the League of California Cities (L.C.C.) Mr. Chris McKenna. The hopeful part of the report came as the research director of the L.C.C. Chris Hoene articulated his prediction that of the 19,000 city governments in the country fewer than 100 will use the bankruptcy alternative nationwide. Nonetheless, Stockton officials said the city will try to impose losses on lenders, not just employees. This bold move from cities can force bondholders to accept less than full face value as payment from municipal bonds. All of these municipal turmoil during an election year can't be good for the administration.

THE SHADOW INVENTORY IN OUR REAL ESTATE INVESTMENT MARKET The June 2012 Foreclosure Sales were significantly down in the three largest foreclosure states in the west. California Foreclosure Sales were down 13.4 percent over last month, and down 48.8 percent vs. June 2011. Arizona Foreclosure Sales were down 18.5 percent over last month, and down 42.1 percent vs. June 2011. Nevada Foreclosure Sales were down 14.6 percent over last month, and down 72.1 percent vs. June 2011 ...driven by the new regulation that took effect in October 2011. In addition, Foreclosure Filings are flat to down in all states in our coverage area, both on a month over month basis and vs. previous year. Arizona Notice of Sales were down 27.7 percent over last month, Nevada Notice of Defaults were down 22.7 percent over last month, and California Notice of Defaults were basically flat, being down 0.9 percent over last month. We already have significantly low home and commercial sales in the market today, and with the declining level of Foreclosure Sales the inventory will continue to decrease. In California, banks take on average 272 days to resell properties they take back at auction, thus, realtors, investors, and home-buyers should brace themselves for significantly less inventory in next years' selling season.

BRITISH AND AMERICAN BANKS LIBOR RATE SCANDAL Round One Here we go again Americans have been plagued with the dealings of the elite class of commercial and political leaders in charge of our country for awhile now. As the American middle class struggle to survive the big recession depression of the 21st century losing all of their retirement investments, houses, cars etc. American cities are staring to file for bankruptcy and the federal and state governments struggle to k...Continue reading

SHORT SALES and BANK of AMERICA. They may get faster or they are still giving the angry consumers lip service? Bank of America is working to find common ground between buyers, sellers and Realtors by making the short sale origination process transparent. Matt Vernon, a Bank of America executive, in a meeting with the National Association of Realtors, explained that the bank has finally realized that it must change its business model to meet the demands of their custom...Continue reading

ETCHART REAL ESTATE CONSULTING GROUP Friday, June 29, 2012 It was a practice proposed by the Republican presidential candidate John McCain during his campaign in 2008 and people laugh at it. Well no one is laughing any longer. Reducing the amount struggling homeowners owe on their mortgages is proving to be a more effective way to prevent foreclosures than other methods, such as reducing interest rates or postponing payments, a new report finds. We have been consulting ...Continue reading

This market report from Weiss news presents investment facts that will affect our California real estate market and are absolutely unconscionable. The fact that even the world’s major credit ratings agencies are still telling us that everything is fine ... even as Europe’s financial heart is suffering cardiac arrest is in my view a criminal act against the average American investor. Read on The credit rating companies manufacturing the information are the same companies that...Continue reading

WE MAY NOT SEE A TURNAROUND OF THIS ECONOMY IN OUR LIFETIMES The U.S. housing market is likely to remain weak and may take a generation or more to rebound, Yale economics professor Robert Shiller told Reuters in April. Mr. Shiller is also the co-creator of the Standard & Poor's/Case-Shiller home price index, and said a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for ...the foreseeable future. His quote to Reuters was more chilling for the US homebuyer I worry that we might not see a really major turnaround in our lifetimes end quote. Shiller also stated that out of the 20 suburban area US cities showing small price stabilization may in particular endure further price declines as high gas prices increase demand for "walk-able cities." This is not good news for the Obama administration. Tom Porcelli, Chief economist of RBC Capital Markets in New York went as far to say that even with today's data, the broad prospect for home prices is at best flat over the course of the year". For our central California market investors this is not such bad news. Rents in our area are going up as more people lose their homes to foreclosure increasing demand for strategically located rentals. Average single family residences investors were buying for up to $350,000 only 4 years ago are being priced at $175,000 and below. Condominiums selling for $120,000 and higher then, are selling now for $45,000 to $50,000 and renting for as high as $750 and more per month. The challenge for the average home buyer is the flat refusal or at best apathy of major banks to provide loans for these low priced properties to first time buyers or private investors desiring to take advantage of the low pricing and purchase a second home with the purpose of generating rental income. Cash investors on the other hand are absorbing as many of those properties as they possibly can. Fresno County is a great place to live and prior 2002 real estate values are making our area more attractive to local and out of the area investors. Contact us with any questions regarding this article and please send us your feed back to touch topics that interest you in our California Real Estate Market place. Etchart Real Estate Consulting and Guarantee Real Estate [email protected]

COSTCO IS IN THE MORTGAGE BUSINESS NOW COSTCO is adding to your shopping list: Need a mortgage? Costco shoppers will now find that they not only can buy their groceries in bulk at the warehouse retailer, but they can also shop for a mortgage too. ... Costco announced that it will offer a full-service mortgage lending program on its Web site with First Choice Bank and 10 other lenders. The site gathers quotes from various lenders. The warehouse retail giant has been testing out offering mortgages for over a year in some of its locations. Its lending partners have issued more than 10,000 mortgages to Costco members so far. CNNMoney interviewed a Georgia shopper for an opinion and her answer was; I went in to buy some bottled water, big bags of chips, cereal, and some Nutri-Grain bars that I eat on my route, I saw a home loan brochure on my way out and picked it up. He then went to the Costco site and was able to get mortgage rates from four lenders, as well as estimated closing costs and terms. He was able to refinance his mortgage and lower his monthly payments by $500 per month. Lauren Kutschka, Costco’s manager of financial services was quoted saying We’ve always known that our members wanted more financial services, Costco now also offers health and auto insurance and stock brokerage services. Costco next plans to add auto and student loans to its mix. To view Costco’s mortgage offerings go to: http://www.costco.com/Browse/Productgroup.aspx|55291|90711&N=4047902&Mo=0&No=0&Nr=P_CatalogName:BC&cat=90711&Ns=P_Price|1||P_SignDesc1&lang=en-US

HOW TO GET THE RIGHT PROPERTY MANAGERS & KNOW HOW THEY SET THEIR FEES As with all service rendering cases, when it comes to hiring a rental agent or a property manager, landlords are after ensuring to hire the best possible firm for the job at the best competitive price. Particularly management and rental services are not a one-size-fits-all kind of field. They need set a property management fee at a rate that is both profitable for the agent and appealing to you the potentia...Continue reading

REAL ESTATE QUESTION: SHOULD I OR SHOULD I NOT INVEST IN INTERNATIONAL REAL ESTATE Good question. International real estate investment success greatly depends on your knowledge in the particular market. We counsel clients in international recreational real estate which takes less investment risk than developing a new project. We also have foreigners trusting our U.S. market more than their own. Especially Europeans. Keep in mind this short list before you venture out into Can...ada or any other foreign markets. a. We believe that investing in international real estate offers diversification in your real estate portfolio optimizing potential for a greater return. Real estate markets are trendy and tend to go in cycles. While we are here in a down market, others such as the Latin Americas and some parts of Europe are booming. The reports of the International Real Estate Federation present good reading to acquire overall knowledge in the subject. As a small investor you have the opportunity to diversify your assets into markets that show considerable potential for growth such as the ones we mention. b. According to how much you like to invest, we would be able to advice you more concretely. Keep in mind currency exchange rates that can actually enhance or impede profits. For example, a small office building in Europe worth 1 million six years ago would have equated to $920,000 U.S. dollars, when the Euro traded at 0.92 Euros to the dollar. Since, any appreciation in the building’s value might have been compounded or negated by changes in exchange rate. In this case, the exchange rate would have added to the returns: With an appreciation of 10 percent, the newly valued 1.1 million office building would be worth $1.65 million almost twice its original value in U.S. dollars. We do not see the dollar regaining appreciation for at least five more years. c. Canada is a good example. They escaped the global economic crisis with minor cuts and bruises while many other countries are still being hit hard. The discipline and regulation under which their banks operated under largely kept their economy out of the big troubles felt in many other parts of the world. However, in my view, recreational or farm property in Latin America represents a better risk dollar per dollar depending on how much you are going to invest. Construction as an example continues to boom in Buenos Aires. We also have a list of where NOT to invest as well. d. Keep in mind legal and tax technicalities. Foreign real estate markets can be daunting if you don’t have the right counseling. Some locations, such as the United Kingdom, do not require or provide licensing for real estate agencies, which can leave the door open for fraud and predatory practices.

STATE OF THE CALIFORNIA REAL ESTATE MARKET It has been forecasted by the CAR (California Association of Realtors) that California home sales are expected to remain essentially flat in 2012 rising a bit by the middle of the year, according to a housing market forecast. During 2012, CAR expected a slight 1 percent rise, to 496,200 units. CAR projected the median home price in the state falling 4 percent in 2011, to $291,000, followed by a modest 1.7 percent rise in 2012, to $2...Continue reading

REVERSE MORTGAGES (Read The Article Below)

Many Clients ask what is a Reverse Mortgage. The Definition A Reverse Mortgage is a type of loan that allows homeowners age 62 and older to turn their home equity into cash, while still living in and owning their own home. The Reason Companies promoting the practice will tell you to get one when you need extra money for a single big expense, or just a little more money each month. With a Reverse Mortgage, you have the flexibility to choose how you want to be paid. You can cho...Continue reading

REAL ESTATE QUESTION OF THE DAY: Is the fair market value of a house the price paid at a foreclosure sale? As per Real Estate attorney Christopher Hanson the answer is YES and NO but mostly no. We agree with Mr. Hanson’s assessment, the Fair Market Value of a property is what a willing buyer will pay a willing seller, with no outside factors influencing the amount. However, a foreclosure sale is a discounted sale because the bank just wants to dump the property and not take i...t back, and the all cash investor is looking for a bargain. The California Supreme Court acknowledges that the price paid at a foreclosure sale is nearly always discounted. (Don’t ask about the multiple bidding that’s going on today it just confuses me when I have to think about it.) Is that FMV the same FMV that can be used in a fairness hearing when the Bank is seeking a deficiency? Well, probably not said Hanson. Because of many of the same factors, the Bank’s bid price may not be anywhere near real FMV. It’s all about gaining leverage in a deficiency claim. On the other hand, a borrower might be able to stick the Bank with its lowball bid; thus the yes part of yes, and no. Isn’t the law grand! Such clear answers each and every time! This information was compiled by the Etchart Real Estate Consulting Group for consumer awareness.

WHERE ARE ALL THE REAL ESTATE RIFINANICING EFFORTS GOING? The administration is pushing the banks to comply and the banks were not really doing it. There was more profit in the foreclosure alternative. It has been a long while since we have seen a bank doing something from the heart. For them it is only business and an individual or company is only a number in a balance sheet to ad or to subtract. But now, after the loss of the 24 Billion dollars law suit against them from ...Continue reading

INFORMATION CONSUMERS NEEDS TO KNOW SHORT-SALE vs. FORECLOSURE BENEFITS OF A SHORT SALE VS. FORECLOSURE Question or Issue:...Continue reading

DID THE OBAMA ADMINISTRATION KNOW AHEAD OF TIME ABOUT THE U.S. FINANCIAL MELTDOWN? You decide. The Foundation for the Study of Cycles says that, based on 5,000 years of cyclical data, 2012 predicts to deliver "The Perfect Storm." (foundationforthestudyofcycles.org) I personally do not believe in predicting the future. However, I do believe that if we don’t know our history we are bound to repeat it. For every action there is an equally strong reaction. Countless reputable fi...Continue reading

IF YOU ARE A HOME OWNER IN THE U.S. READ THE FOLLOWING REPORT... Beginning January 1, 2013, the Obama-Health Care program imposes a 3.8% Medicare tax on unearned income of high-income taxpayers which could apply to proceeds from the sale of single family homes, townhouses, co-ops, condominiums, and even rental income, depending on your individual circumstances and any capital gains tax exclusions. Importantly, the high income thresholds are not indexed for inflation so wi...ll reach increasing numbers of middle-class taxpayers over time. In February 2010, 5.02 million homes were sold, according to the National Association of Realtors (NAR). On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property could slam middle-income families with a new tax they can’t afford. This new Obama-Health Care hidden tax is the first time the government will apply a 3.8 percent tax on unearned income. This new tax on home sales and unearned income and other Medicare taxes raise taxes more than $210 billion to pay for the Obama Administration Health Care program. The National Association of Realtors called this new Medicare tax on unearned income destructive and ill-advised and warned it would hurt job creation. I tend to agree with that statement. The National Association of Realtors (NAR) is earning their subscribers financial contribution by bringing to light hidden facts like the one described above. They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." Whether it's to protect our freedom or to protect business interests, the line between keeping things safe and violating essential freedoms is very fine indeed-- but it's up to us to voice our objections when we think things have gone too far. Benjamin Franklin (17 January 1706 17 April 1790) was an American inventor, journalist, printer, diplomat, and statesman.

FOREIGNERS HAVE MORE CONFIDENCE IN OUR REAL ESTATE MARKET Last week the National Association of Realtors Together with the Miami Association of Realtors, hosted the annual International Real Estate Congress in Miami Florida. The event was attended by hundreds of real estate professionals from as far away as China, Russia, France, Spain and Latin Americas Brazil, Argentina and Mexico. The conference lasted two days and included as well many local, national and international... real estate economists, practitioners, real estate developers, banking financiers and real estate lawyers. They were all informed of what to expect from the U.S. housing market in the coming year with all of the doom and gloom predictions. Lawrence Yun, National Association of Realtor’s Chief Economist provided a detailed presentation showed current housing trends, historical stats and market forces at work at both the local, national and international levels that lasted over one hour. Mr. Yun stated that U.S. home sales are now running parallel with sales levels from 1998 even though there are approximately 3 million more people added to the U.S. population every year, creating an enormous pent-up demand yet to be included to the marketplace. He also stated that over 40 million multi-generational family members and friends are now living in the same household because of the tough economic time. Many generation X are moving back in with parents or grandparents, or multiple families sharing a single residence. All those people typically would be buying homes in normal market conditions. Florida has the benefit of having foreign buyers and in 2011 they account for property purchases as follows: 41% Canada and Mexico 26% Latin America 23% Western Europe 10% Other Nations Mr. Yun also pointed out that new start up home prices are an all-time low not seen since the end of World War II. That fact alone indicates that the U.S. market will likely be experiencing a housing shortage during the coming years. When the economy turns and people start getting jobs and buying homes again at normal price levels the prices will begin to climb up again. Hopefully California with 12% of foreign real estate buyers will benefit with the trend being second after Florida followed by 9% in Texas and 6% in Arizona. Vicktor Etchart MPh.D. Etchart Real Estate Consulting Group See more

CALIFORNIA HOME PRICES CONTINUE TO GO DOWN DataQuick real estate tracking San Diego base company company reports that California's home prices eroded further in October, which helped boost sales compared with the same month last year. The median price for a home sold in California last month was $240,000, down 6.3% from October 2010 and 3.6% from September, according to DataQuick, October's performance marked the 13th consecutive year-over-year monthly decrease in the median..., the point at which half the homes sold for more and half for less. The data tracking service company estimated that 34,087 new and previously owned homes and condos sold statewide in October, up 4.3% from October 2010 but down 3.7% from September. Since 1988, October sales have averaged 43,528. Sales of higher-priced homes fell sharply after the federal government reduced the size of mortgages it would back, starting Oct. 1, Foreclosures remained a significant part of the market; so did short sales, transactions in which the bank allows a property to be sold for less than the amount of the debt on the home. More than half the previously owned homes that sold in California last month were either foreclosures or short sales. In Southern California, home sales increased 0.5% from October 2010 and dropped 7.3% from September, to 16,829. The $270,000 median price for the region fell 4.6% from October 2010 and 3.6% from September. In the Bay Area, October sales rose 5.3% from the same month a year earlier and fell 4.5% from September, to 6,444. The median price for the region fell 8.6% from October 2010 and 4.1% from September, to $350,000.

Gold trading fueled by fears over the escalating global financial meltdown and gold prices are projected to increase through the end of this year and on into 2012 as investors flee with their uncertainties to the metal. Mining companies report that the precious commodity may hit $2,000 an ounce by the end of 2011, and rise further to $2,300 by the close of 2012. The Etchart Real Estate Consulting Group and associates has developed connections with gold mining companies in cen...tral and South America selling their product to international investors. Gold prices have jumped 40 percent in the last 12 months, and predicted trading is at $1,780 per ounce. The highest price recorded this year so far was on September 6 when it hit $1,921.15. Not Only Financial Factors are fueling the volatile price increase. A continuous political unrest in the Middle East, the European Union concerns about the financial situation in Greece and other alliance members as the rumors of war with NATO allied Turkey and Greece, the U.S. tremendous deficit are all contributing to gold metal rise in price. However, the interesting question is why then, gold mining operations are yet to post substantial gains? To close the gap between what analysts predict gold prices will be and mining companies equities, gold miners have sought to raise dividends because the realities of mining companies and production, antagonize investors. Challenges such as labor and employment struggles, delayed production targets as well as tax increases appear less appealing to the small investor. As an example reported by the Wall Street Journal, Monday September 19th Newmont introduced a dividend structure to hike annual dividend by 20 cents for every $100 rise in the gold price and an additional 10 cent increase for every $100 above $2,000. While other gold companies are planning to pay their investors with dividends in actual gold metal. With the lowest prices for real estate in the state, central California real estate is still the best bargain for buying low to later sell high for the average investor if you are not planning to flip the property. The information herein has been compiled from independent international and public sources by the Etchart Real Estate Consulting Group. For questions contact [email protected]. This is NOT investment advice. Its content is for informative purposes only. See more