Fed sees ‘slightly’ improved economy in Colorado region

Denver Business Journal by Heather Draper, Reporter

Date: Wednesday, October 19, 2011, 4:05pm MDT

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Manufacturing, Banking & Financial Services, Commercial Real Estate, Retailing & Restaurants, Economic Snapshot

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Heather Draper

Reporter - Denver Business Journal

Email | Facebook | Twitter | Finance Etc. blog

The economy in Colorado and neighboring states “improved slightly” in late August and September, the U.S. Federal Reserve reports in its latest “Beige Book” survey of the region’s business executives.

The Fed’s Kansas City-based 10th District, which includes Colorado and some or all of six neighboring states, was among 10 of the 12 Fed districts nationwide that registered modest or slight growth in the six-week period covered by the Beige Book. Growth was slower or non-existent in the Richmond and Philadelphia districts.

The Beige Book is based on interviews with a sample of business executives representing key industries in each district. The reports are anecdotal and do not contain statistics, but they are widely followed and help the Fed to set national economic policy.

According to the latest 10th District Beige Book, consumer spending increased in the retail and auto sectors, but declined slightly in the restaurant and travel sectors.

“Luxury goods, such as jewelry and custom-upholstered furniture, sold particularly well,” the report said.

Manufacturing activity rose at durable goods factories, and the high-tech services industry experienced strong growth, while transportation activity was flat.

Residential and commercial real estate and construction contacts continued to report weak conditions. Multi-family building projects were the only area of reported growth by commercial construction contacts.

The energy sector expanded further with production increasing for oil, natural gas and coal, according to the report.

Bankers in Colorado and neighboring states reported increased deposits, but somewhat weaker loan demand and a slight deterioration in loan quality.

Read More: http://www.bizjournals.com/denver/news/2011/10/19/fed-sees-slightly-improved-economy.html

Ten Best Cities for Buying Investment Property

Jason Hartman Recommends

Ten Best Cities for Buying

Investment Property

While many average Americans are skittish about the housing market, the country's richest citizens see current conditions as perfect for buying income properties

Irvine, CA (PRWEB) October 19, 2011

Buying investment property is the best possible way to invest your money and now is the time, according to wealth creation expert Jason Hartman. Not only does purchasing income property allow the investor to borrow the financing(leveraging debt and inflation), it allows the investor to “outsource” his mortgage payments to the tenant while ultimately earning the investor rights to a free and clear title.

“Tens of thousands, if not hundreds of thousands, of people are quietly creating wealth every year because they pulled their money out of the stock market, which has had no real gains in years, and put it to work with income property investing,” said Jason Hartman, founder of Platinum Properties Investor Network and host of The Creating Wealth Radio Show. “Time and again, history has proven that income property investments are most the historically proven way to create long-term wealth.” Hartman notes the philosophies of investment icons including Robert Kiyosaki, Donald Trump and Warrent Buffett as examples of such wealth creation.

Considering that 85 percent of all wealthy Americans built their fortunes with real estate investments, Jason Hartman shares his top ten picks in the U.S for purchasing income-producing property:

1. Atlanta - The only way to describe the hand-picked Atlanta submarkets we recommend is “exceptional.” When it comes to American cities, Atlanta is a story for the history books. First founded as a railroad hub of the southern states, it refuses to stop growing at an exponential pace while attracting numerous Fortune 500 corporate headquarters. Its population continues to grow by the millions while the number of transplant professionals looking for rental homes surges by the week.

2. Dallas - Not only home to all kinds of cowboys, Dallas is continuously rated as one of the best cities in America for business and real estate by Forbes and numerous business journals. Its market-friendly approach, favorable tax climate, proximity to freeways, large renter population and high quality of life promise a bright present—and future—for real estate investors.

3. Phoenix - When it comes to return on investment, “The Valley of the Sun” just won't quit. Not only does Phoenix continue to attract dozens of Fortune 500 and Fortune 100 companies, but the ratio of affordability to rental income potential is one of the best in the country. Phoenix is the 5th largest metro area in the United States and is sunny year-round.

4. Indianapolis - Combine a low cost of living, a bunch of the top sports franchises, ever-increasing recommendations by Forbes magazine and increasing employer presence. this is the gold mine that is Indianapolis. When a city in the Midwest manages to lead job growth nationwide in the midst of a massive economic recession, you should take notice if you are ready to buy income properties. They call it “The Crossroads of America” for good reason.

5. St. Louis - Home to very proud residents that welcome a surprising amount of tourism and visitors each year, St. Louis is beginning to impress investors. With a ton of top American corporate headquarters and a wide variety of healthy industries from manufacturing to high-tech, this jewel of Missouri is worth a look.

6. St. Robert - Perhaps the less famous Saint of Missouri, but the often unrecognized leader of regional commerce in this part of the country is St. Robert. Located just off Interstate 44 and supported in part by the stability of Fort Leonard Wood, the local military base, St. Robert has one of the highest predicted growth rates in coming years for American jobs.

7. Denver - The mile-high city first made famous during and after the gold rush and push West, Denver continues to attract adventurers, transplants and business investors. Named the 2nd best place to live by Sperling's due in part to its year-round entertainment and activities, it also keeps impressing Forbes (among others) as a promising investment market. Add well-run local government with ambitious infrastructure projects, a large “creative class” and rapid private-sector growth and you have an idea of the massive potential that Denver has to offer.

Read More: http://m.benzinga.com/pressreleases/11/10/p1997571/jason-hartman-recommends-ten-best-cities-for-buying-investment-property

It's Time to Buy That House

Online.wsj.com —Jack Hough is a columnist at SmartMoney.com

U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter "throws money down the drain." Whether buying is a better deal than renting isn't a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers' favor. Stock-oriented folks can think of a house's price/rent ratio as akin to a stock's price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody's Analytics. The average from 1989 to 2003 was about 10, so valuations aren't quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren't hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or "points.") The latest rate is still less than half the average since 1971.

Read More: http://online.wsj.com/article_email/SB10001424052970204774604576629443313035736-lMyQjAxMTAxMDEwNjExNDYyWj.html?mod=wsj_share_email_bot