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

Rate on 30-year mortgage falls to record 4.01 pct.

Rate on 30-year mortgage falls to record 4.01 pct. By DEREK KRAVITZ AP Real Estate Writer

WASHINGTON (AP) -- Fixed mortgage rates have fallen to historic new lows for a fourth straight week and are likely to fall further. The average on a 30-year fixed mortgage fell to 4.01 percent from 4.09 percent this week, Freddie Mac said Thursday. That's the lowest rate since the mortgage buyer began keeping records in 1971. The last time long-term rates were lower was in 1951, when most long-term home loans lasted just 20 or 25 years. The average on a 15-year fixed mortgage, a popular refinancing option, ticked down to 3.28 percent. Economists say that's the lowest rate ever for the loan. Mortgage rates tend to track the yield on the 10-year Treasury note. The 10-year yield has risen this week to around 2 percent. A week ago, it touched 1.74 percent - the lowest level since the Federal Reserve Bank of St. Louis started keeping daily records in 1962. As recently as July, the 10-year yield exceeded 3 percent. Rates on mortgages could fall further after the Federal Reserve announced last week that it would take further action to try to lower long-term rates. Still, low rates have so far done little to boost home sales or refinancing. Many would-be buyers or homeowners don't have enough cash or home equity to get a new loan. High unemployment, scant wage gains and debt loads represent a heavy burden for many people. Others can't qualify. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. This year is shaping up to be among the worst for sales of previously occupied homes in 14 years. Few are buying, even though the average rate on the 30-year fixed mortgage has fallen to around 4 percent. A drop in mortgage rates could provide some help to the economy if more people could refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Consider a homeowner who owes $250,000 and is paying 5.09 percent on a 30-year fixed mortgage. That was the average rate being offered in January 2010. Refinancing the loan at 4.01 percent could save him or her roughly $2,000 a year. But many homeowners with good jobs and stable finances have already refinanced over the past year as rates have fallen. The average rate on the 30-year loan fell to new lows in November, August and again this month. Homeowners also typically pay a few thousand dollars in closing costs when they refinance. And the low rates being offered don't include extra fees, which many borrowers must pay to get the rates. Those fees are known as points; one point equals 1 percent of the loan amount. Read More: http://hosted.ap.org/dynamic/stories/U/US_MORTGAGE_RATES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-09-29-15-43-28

Foreclosure starts surge in Western states

ForeclosureRadar: BofA ramping up filings against delinquent homeowners

BY INMAN NEWS, TUESDAY, SEPTEMBER 13, 2011.

Inman News™

Flickr/respres

Foreclosure starts jumped by double digits from July to August in four out of five Western states tracked by ForeclosureRadar, reversing what had been a declining trend over the past several months, the company said.

The increase in foreclosure starts seen in Arizona, California, Nevada, Oregon and Washington appeared to be driven primarily by Bank of America and related companies, which boosted notice of default and notice of trustee sale filings by 116 percent from July to August.

Wells Fargo and US Bank also ramped up foreclosure start filings, ForeclosureRadar said, while filings by JP Morgan Chase and Citibank were essentially flat, ForeclosureRadar said.

In California, foreclosure starts jumped nearly 70 percent from July to August, totaling 31,965 -- the highest level in a year. The average time to foreclose in California increased to 333 days in August, 49 days longer than a year ago.

Notice of trustee sale filings were up more moderately, rising 6 percent from July to August but still down nearly 24 percent from a year ago at 24,020.

Colorado's Economy In A Nutshell

DENVER - The data that has been gathered from the Colorado economy is sending mixed signals.

The state's economy is normally similar to the rest of the country, but today it varies in some aspects.

"Jobs still remain stagnant," 9NEWS anchor Gregg Moss said. "There are about 230,000 people in our state looking for work right now."

Though that number seems large, in comparison to the rest of the country, it's relatively low.

Nonetheless, job growth is still moving along slowly, with the construction industry being the slowest to recover, according to economists. However, it differentiates when it comes to manufacturing, which is making a comeback.

Read More: http://www.9news.com/news/article/211935/188/Colorados-economy-in-a-nutshell

Denver Metro Area Luxury Home Sales Soar in June

Denver Metro Area Luxury Home Sales Soar in June, Coldwell Banker Residential Brokerage Reports

Denver, CO, July 17, 2011 --(PR.com)-- Luxury home sales in the Denver Metro Area soared in June from the previous month and were also up from a year ago as high-end buyers took advantage of attractive property values in many areas, according to Coldwell Banker Residential Brokerage, Colorado’s leading provider of luxury real estate services.

A total of 71 homes changed hands for more than $1 million last month, up sharply from May’s total of 47 sales. June’s transactions also outpaced June 2010 when 67 luxury homes were sold. Additionally, the ultra luxury market gained momentum with 11 multi-million-dollar homes selling last month, up from seven in May.

The median sale price of million-dollar homes moved higher in June, reaching $1.3 million from $1.25 million in May. However, the median was off from last June’s $1.34 million price.

Other indicators also provided encouragement for the high-end market in the Denver Metro Area: Homes also sold at a faster rate on average at 164 days vs. 215 for those closing the previous month. And sellers received an average of 92.6 percent of their asking price, up from 91.3 percent in May and 90.4 percent last June.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area.

Read More: http://www.pr.com/press-release/339367

This real-estate scam can land you in jail

WASHINGTON (MarketWatch) — Rarely has a topic elicited as much response as my column about the scam known as flopping, which is the “art” of intentionally misrepresenting the value of a financially strapped borrower’s house in order to buy it at a discounted price from the lender and resell it at its true market value.

Under a flopping scam, the owner seeks permission from the lender for a short sale at a price that is below what he owes on the property. The lender hires a real- estate agent to provide what’s known in the trade as a “broker price opinion,” which is the agent’s informed estimate of the property’s worth. But instead of providing honest evaluations, some agents are low-balling the number. And then, if the lender accepts the figure, they or an accomplice buy the house in question at that price and flip it, or resell it quickly at the true market value and pocket the difference.

Crime and punishment

Some readers asked what’s the big deal? After all, no crime is committed. “I don’t really get the objection to this,” wrote Bill, a Colorado attorney. “If I buy a short-sale property from a bank and sell it a year later for a profit, there’s no issue. If I do it a month later, no problem. Why is it fraud if I resell it a day later? Lenders are not losing money on the marked-up price because they cannot sell the property; they are not the owners yet.”

Read More Here: http://www.marketwatch.com/story/this-real-estate-scam-can-land-you-in-jail-2011-07-01