06/25/10 Maui Hawaii USA
Most recently the New York Times have published several articles dealing with financing, banking, economic foes, interest rates, the volcker rule, real estate sales depression and sustainable capitalism. Do all these topics sound familiar? It appears to me, that the similarity of their contents go way back to 1 A.D. Needless to say, the principles of human behaviour need to be controlled by ourselves, it has been stated by the "intellectuals" in every generation and even by some "religious gurus". No matter what, we are here in this "bubble" not to benefit ourselves but to do it for the benefit of all. What a commendable spirit did the "founder fathers" have. Men with integrity, loyalty, moral values etc.etc. Each new generation, gets impacted by the decisions of the so called "capital elites", the major difference today is that the whole planet is inversely correlated to all the existing economies; what happens today is reflected and affecting the international finance systems of the world, the stocks, the credit markets, the currencies, the commodities etc.etc. Economic Behaviour Modification, is essential today in order to change the direction that the human financial spectrum is heading to. Since Capitalism, money, is the essence of sustainbility worlwide, the banks need to spread-out the wealth, rather than getting bailed-out for ludicrous investing mistakes, which were definitely a risk. Basic principle "don't spend it all in one place and invest in fractional increments". In forty(40) years I have seen the dollar amounts go from millions, to billions and now trillions. If we do not get intelligent and acquire some wisdom from previous mistakes it will be a new quantum, quatrillion. How much more inflation do we need? By the way I did not mean "quattuordecillion". Thank you.
Friday, June 25, 2010
Wednesday, May 12, 2010
TRILLION DOLLAR RESCUE PLAN FOR GREECE & ET.AL
In case you did not know a trillion is 12 zeroes after a single integer, this is what it looks like, $1,000,000,000,000. What could-off gone wrong with the European nations to have incurred this tremendous debt? How does this affect the Real Estate industry, plus other economic indicators which are factorial in the analysis. The fundamental principles of any economy are based on natural resources, capital, production and employment. Pretty much Economics 101. But the essence of macroeconomics, in this "global economy", has made it a direct inverse correlation proportional to other key indicators. What is happening? What will happen? A rudimentary example such as, if the guys with the money are tumbling down, the little guys will fall along with them. When you have a Central Bank controlled by the money makers, if I may say so, the billionaires of today, any rescue plan may be feasible and also for whatever amount. Of course inflation will be a factor, currency devaluation may be another, mergers are in perspective, real estate foreclosures are evident, financial investments are in jeopardy, the stock market does it usual up and down, employment decreases, production fluctuates and on and on and on. The "domino effect of economics".
Kid yourself not, one menacing aspect of one economy will affect the whole of the economic spectrum around the globe. The billionaires are probably wondering how do we remedy this problem? One effective temporary real solution was to print more money and injected into the economy. When I say "print", is it materially manufactured or is it just manually inputed in the computer and add the zeroes? What section of the globe will be affected next?
The problem we are facing today are all money related trauma, which in return will cause psychological pernicious economics. Real Estate around the globe is not exempt. This disease is resistant, obstinate and resilient and also contiguous in emulating or attaching itself to prospective solutions and dissolutions. It is predatorial. It will join you when you need it and turn against you when it has reached its goals. And it will use the best of you. The smaller microeconomics will be sucked-in and the macroeconomics will sustain itself with major innovations and transitional monetary solutions, compounded by the procurement of business industrial acquisitions that will be sustainable for the time being, for the acquiescence of accumulating more capital. A notable example at this juncture is the market of "commodities", especially gold(Au). The price per COMEX has shown substantial increase. Many have bought into gold stocks, gold bonds, gold-backed-securities and many others. Paper made. But, the question is, who has really bought the "gold bullion" and how many troy onces? And, when you did, did they send you the bars or gold coins to your safe at your bank? Do not be surprise, if this is the next chaos or investment scam.
Conclusively, if you want to play "monopoly economics", know the rules and regulations to perfection. Be impeccable in your transactions, get the most for the buck. Real Estate in Hawaii is in the phase of the "buyers market", plenty of inventory, foreclosures and good low deals. Buy low and sell high, has always been the motto, in many industries. It does not exclude Real Estate, whether is here or any other part of the globe. Last month April 2010, 265 units of all types were sold for a total dollar value of approximately $197,000,000. Could these many buyers be wrong about the real estate industry in Maui Hawaii? Thank you.
Respectfully Submitted,
Andre Adoloffo, Realtor(S), BA
andreadoloffo1947@hawaii.rr.com
Kid yourself not, one menacing aspect of one economy will affect the whole of the economic spectrum around the globe. The billionaires are probably wondering how do we remedy this problem? One effective temporary real solution was to print more money and injected into the economy. When I say "print", is it materially manufactured or is it just manually inputed in the computer and add the zeroes? What section of the globe will be affected next?
The problem we are facing today are all money related trauma, which in return will cause psychological pernicious economics. Real Estate around the globe is not exempt. This disease is resistant, obstinate and resilient and also contiguous in emulating or attaching itself to prospective solutions and dissolutions. It is predatorial. It will join you when you need it and turn against you when it has reached its goals. And it will use the best of you. The smaller microeconomics will be sucked-in and the macroeconomics will sustain itself with major innovations and transitional monetary solutions, compounded by the procurement of business industrial acquisitions that will be sustainable for the time being, for the acquiescence of accumulating more capital. A notable example at this juncture is the market of "commodities", especially gold(Au). The price per COMEX has shown substantial increase. Many have bought into gold stocks, gold bonds, gold-backed-securities and many others. Paper made. But, the question is, who has really bought the "gold bullion" and how many troy onces? And, when you did, did they send you the bars or gold coins to your safe at your bank? Do not be surprise, if this is the next chaos or investment scam.
Conclusively, if you want to play "monopoly economics", know the rules and regulations to perfection. Be impeccable in your transactions, get the most for the buck. Real Estate in Hawaii is in the phase of the "buyers market", plenty of inventory, foreclosures and good low deals. Buy low and sell high, has always been the motto, in many industries. It does not exclude Real Estate, whether is here or any other part of the globe. Last month April 2010, 265 units of all types were sold for a total dollar value of approximately $197,000,000. Could these many buyers be wrong about the real estate industry in Maui Hawaii? Thank you.
Respectfully Submitted,
Andre Adoloffo, Realtor(S), BA
andreadoloffo1947@hawaii.rr.com
Thursday, May 6, 2010
REFERRAL FEE AGREEMENTS
This explanation was an actual occurrence. Broker asked a Realtor(S), on his staff to represent one of his buyers or clients since the Developers stipulation was to have a minimum of three per Realtor, on a new development to be constructed. The Realtor represented the Buyer as the Priority Purchaser's Broker, license in Hawaii, so therefore he represented the Buyer through the process of the Limited Priority Reservation Agreement. Realtor registered the Buyer to buy a unit and upon the Deposit of $20,000 in a non-interest bearing account, the reservation was agreed upon. Total purchase price was $1,675,000.00, with two payments scheduled in the amount of the Initial deposit of $167,000 and a second deposit of $167,500. Buyer paid both deposits. The balance to be deposited with Escrow, no later than four (4), days prior to Closing of Escrow. Broker, then decides to close his Realty Office, but maintaining an active Realty at a different address. The agreement between the Broker and Realtor is verbal at a compensation of $2,000, then corroborated by email for validation. No Referral Fee Agreement form RR404, was executed.
Later on, the Broker gets paid by the Developer or Seller on the 50% commission earned on the construction of the condominium. Realtor finds-out on his own accord and diligence that Broker got paid and he did not. Broker decides not to pay the Realtor until the Close of Escrow. Asks Realtor if he gets paid the $2,000 will he be able to return the money if there is a default by the Buyer. Realtor, has no problem in returning the funds. Still Broker does not pay Realtor. Several years go by and the Realtor has not been paid by the Broker. Buyer has not executed the contracts final agreement and is in default, decides to join a lawsuit against the developer. Realtor contacts the Developer's new sales team and asks what is the status of the lawsuit. Per the Director of Sales representing the Seller, the Buyer was in Default, joining the lawsuit would be frivolous and unfruitious, the remainder of the Buyers money would go into liquidated damages. Finally, the developer would not go after the 50% commission paid to the Broker.
Although the Realtor appealed this case with RAM, through an Arbitration Panel, previously to this findings, nothing came-out-of-it. The moral of the story, do not trust that your broker is going to have integrity,moral values and proffesional decency. Always fill out form RR404 and pay close attention to the "Other Terms" section and make sure to cover all the "ifs" possibilities. Do not do a flat fee, a percentage is better. Thank you.
Later on, the Broker gets paid by the Developer or Seller on the 50% commission earned on the construction of the condominium. Realtor finds-out on his own accord and diligence that Broker got paid and he did not. Broker decides not to pay the Realtor until the Close of Escrow. Asks Realtor if he gets paid the $2,000 will he be able to return the money if there is a default by the Buyer. Realtor, has no problem in returning the funds. Still Broker does not pay Realtor. Several years go by and the Realtor has not been paid by the Broker. Buyer has not executed the contracts final agreement and is in default, decides to join a lawsuit against the developer. Realtor contacts the Developer's new sales team and asks what is the status of the lawsuit. Per the Director of Sales representing the Seller, the Buyer was in Default, joining the lawsuit would be frivolous and unfruitious, the remainder of the Buyers money would go into liquidated damages. Finally, the developer would not go after the 50% commission paid to the Broker.
Although the Realtor appealed this case with RAM, through an Arbitration Panel, previously to this findings, nothing came-out-of-it. The moral of the story, do not trust that your broker is going to have integrity,moral values and proffesional decency. Always fill out form RR404 and pay close attention to the "Other Terms" section and make sure to cover all the "ifs" possibilities. Do not do a flat fee, a percentage is better. Thank you.
Thursday, April 29, 2010
BENEFITS OF THE EXCLUSIVE BUYER REPRESENTATION AGREEMENT
During the last five(5) years as a Realtor(S), in Maui, Hawaii I did not ever used the Exclusive Buyer Representation Agreement, except in some instances. The advantage of this approach is that I was able to lock-in a client for a specific amount of time, at no cost to her until her departure from Maui and after she returned to the mainland. But why? Simply, when the client is here he/she will be researching and reading about the real estate industry and listings advertised in magazines and or TV ads; he/she will be talking to other people and asking questions and exchanging information; he/she will driving around and stopping at different resorts, open houses and new developments. Generally, he/she will be doing what you do not expect them to do and confiding in you, as their Realtor, and a fiduciary representative is very far from their mind. By having your client signed an "exclusive buyer representation agreement", he/she understands that you represent them and is OK to go and look around, but they must tell any other Realtor in the business that he/she has exclusive representation. This confirms your agreement with your client to insure he/she that you will execute your responsibilities per the agreement and you will avoid deflection of loosing them as a client. Following are some pertinent steps to take to lock-in your prospective client, as follows:
1-Greet prospective client
2-Do you have a Realtor?
3-Assumed they are buyers
4-Type of property desire
5Explain the importance of the Exclusive Buyer Representation Agreement
6-Get client to commit to sign the agreement
7-If he/she does not agree, you are wasting your time, you are giving-out free info
8-Thank them for their visit and explain to them your services and earnings are based on a commission basis and you are paid by the seller, if they buy
By using this method you will avoid wasting your time, giving out free information, waiting for a client that will be receptive to your services and knowledge( one out of a hundred) or more , and lastly the most important you are loosing control. In addition, when the client is in front of you, this is your only chance to give -out "first impressions", and the only and last chance to connect with their EI(emotional intelligence). Kid yourself not, the client is there to play you and to get the most out-of-you, if you let them they will win.
I do want to emphasize, that not every client will be a buyer, but a least you will get their true name, telephone number and email. These are key valuable pieces of information and your contact client list will grow to infinite proportions.
Lastly, it is up-to-you to close the client from day one until the Close of Escrow. Always remember the adage/acronym, ABC(always be closing). Thank you.
Andre Adoloffo, Realtor(S), BA
RE/MAX RESORT REALTY
(C)808-269-0879
(F)808-665-1947
andreadoloffo1947@hawaii.rr.com
1-Greet prospective client
2-Do you have a Realtor?
3-Assumed they are buyers
4-Type of property desire
5Explain the importance of the Exclusive Buyer Representation Agreement
6-Get client to commit to sign the agreement
7-If he/she does not agree, you are wasting your time, you are giving-out free info
8-Thank them for their visit and explain to them your services and earnings are based on a commission basis and you are paid by the seller, if they buy
By using this method you will avoid wasting your time, giving out free information, waiting for a client that will be receptive to your services and knowledge( one out of a hundred) or more , and lastly the most important you are loosing control. In addition, when the client is in front of you, this is your only chance to give -out "first impressions", and the only and last chance to connect with their EI(emotional intelligence). Kid yourself not, the client is there to play you and to get the most out-of-you, if you let them they will win.
I do want to emphasize, that not every client will be a buyer, but a least you will get their true name, telephone number and email. These are key valuable pieces of information and your contact client list will grow to infinite proportions.
Lastly, it is up-to-you to close the client from day one until the Close of Escrow. Always remember the adage/acronym, ABC(always be closing). Thank you.
Andre Adoloffo, Realtor(S), BA
RE/MAX RESORT REALTY
(C)808-269-0879
(F)808-665-1947
andreadoloffo1947@hawaii.rr.com
TENANCIES AND TYPES OF OWNERSHIP
TENANT IN SEVERALTY
Sole ownership, held by one person and created by transfer to one person and the possession of the property is totally to one person with the conveyance having no restrictions except if marital rights are present or if any type of prenuptial agreements are relevant to property ownership, in the event of death the entire property may be subject to probate and could be included in a gross estate for federal and state death taxes, it is also subject to creditor's claims and lastly is not presumed by law.
TENANCY IN COMMON
Mote than one owner with a specified percentage of interest for each person and with inheritance to heirs of estate, there is no right of survivorship and it is created by express act and also by the failure to express tenancy by the entities invloved, it has equal rights of possession, which means that each owner has a separate legal title to his undivided percentage interest but it could be made unequal if agreed upon by the owners and expresly executed, the conveyance by each owner is done individualy and the purchaser of such function will become a tenant in common, the fractional interest of each owner is subject to probate and included in gross estate for federal and state death taxes, the property passes by will to devisees or heirs, who then become tenants in common, there is no right of survivorship, the individual owner's interest is subject to creditors claim, it is favored by presumed law even in skeptical cases and presumed to be of equal interests.
JOINT TENANCY
There is more than one owner with an equal percentage of interest between each owner but in this case the inheritance goes to the survivor, it is not a corporation and it has the right of survivorship, the creation is expressed by parties intention in which the title, interest, possession and time are of equal possession, only one title is necessary since theoretically is deemed owner of whole, all the interests must be equally undivided, if you convey your interest it will break the tenancy agreement and the new purchaser becomes a tenant in common, there is no probate or will and the interest of the property goes to the surviving tenants, the last tenant holds it in severalty, in the effect of death the entire property is included in decedent's gross estate for federal estate tax purposes, but there is a percentage attributable to survivor's contribution, in case of creditors debt, the interest of an owner is subject to an execution sale, which makes the tenancy inactive or broken and the purchaser becomes a tenant in common, interesting enough the creditor gets nothing if the debtor tenant owner dies before the sale and lastly it is not presumed by law and must be expressly stated.
TENANCY BY THE ENTIRITIES
The property is held by husband and wife, with the right of survivorship, the creation is done mutually by each party, in case of a divorce they become tenants in common, there are equal right's of posession and there is only one title, the conveyance of the property is invalid without the consent of the other and there is no probate, but the survivor inherits the property, on the effect of death, the property automatically goes to the surviving party, which makes it tenant in severalty but the entire property will become a gross estate for federal and state taxes requirements, in case of creditor's claim it must be executed if both husband and wife owe the same creditor and lastly it must be expresly stated to be presumed by law.
Sole ownership, held by one person and created by transfer to one person and the possession of the property is totally to one person with the conveyance having no restrictions except if marital rights are present or if any type of prenuptial agreements are relevant to property ownership, in the event of death the entire property may be subject to probate and could be included in a gross estate for federal and state death taxes, it is also subject to creditor's claims and lastly is not presumed by law.
TENANCY IN COMMON
Mote than one owner with a specified percentage of interest for each person and with inheritance to heirs of estate, there is no right of survivorship and it is created by express act and also by the failure to express tenancy by the entities invloved, it has equal rights of possession, which means that each owner has a separate legal title to his undivided percentage interest but it could be made unequal if agreed upon by the owners and expresly executed, the conveyance by each owner is done individualy and the purchaser of such function will become a tenant in common, the fractional interest of each owner is subject to probate and included in gross estate for federal and state death taxes, the property passes by will to devisees or heirs, who then become tenants in common, there is no right of survivorship, the individual owner's interest is subject to creditors claim, it is favored by presumed law even in skeptical cases and presumed to be of equal interests.
JOINT TENANCY
There is more than one owner with an equal percentage of interest between each owner but in this case the inheritance goes to the survivor, it is not a corporation and it has the right of survivorship, the creation is expressed by parties intention in which the title, interest, possession and time are of equal possession, only one title is necessary since theoretically is deemed owner of whole, all the interests must be equally undivided, if you convey your interest it will break the tenancy agreement and the new purchaser becomes a tenant in common, there is no probate or will and the interest of the property goes to the surviving tenants, the last tenant holds it in severalty, in the effect of death the entire property is included in decedent's gross estate for federal estate tax purposes, but there is a percentage attributable to survivor's contribution, in case of creditors debt, the interest of an owner is subject to an execution sale, which makes the tenancy inactive or broken and the purchaser becomes a tenant in common, interesting enough the creditor gets nothing if the debtor tenant owner dies before the sale and lastly it is not presumed by law and must be expressly stated.
TENANCY BY THE ENTIRITIES
The property is held by husband and wife, with the right of survivorship, the creation is done mutually by each party, in case of a divorce they become tenants in common, there are equal right's of posession and there is only one title, the conveyance of the property is invalid without the consent of the other and there is no probate, but the survivor inherits the property, on the effect of death, the property automatically goes to the surviving party, which makes it tenant in severalty but the entire property will become a gross estate for federal and state taxes requirements, in case of creditor's claim it must be executed if both husband and wife owe the same creditor and lastly it must be expresly stated to be presumed by law.
Wednesday, April 28, 2010
HOUSING CREDIT OF $8,000 THE FACTS
04/28/10 Maui HI, USA
The New York Times recently had an article about the "true facts" involving the usage of the $8,000 Tax Credit by "first time home buyers". Following is a short synopsis:
1-the rush is on to complete deals by the end of April 30, 2010
2-the deal must close by June 30, 2010
3-approximately 1.8 million bought homes
4-$12.6 billion in credit were collected
5-these group of buyers would have bought anyhow and some were inelegible
6-the ratio was 1:3 (one legitimate and three did not need it)
7-the true legimitate buyer received from the Fed about $30,000 or more
8-thousands that were not qualified received the credit
In conclusion, the Treasury Department performed an audit and found-out that hundreds of million of dollars went to buyers who had not yet bought a house or
who were not true first time home buyers and were not qualified based on the rules and regulations of the program.
What really happened here? Hypothetical insinuation, the people are depending more on the Fed (Socialist Capalism), to provide them with income incentives to sustain or increase their "cash flow", regardless of whether the applicable regulations pertain to legal ramifications with pernicious consequences projectively. The money received will be injected into the economy, use by the people to purchase staples and other necessities and consequently the $8,000 will be spent. You may want to speculate that the standard of living and wages are not at par with inflation and any amount handed over is better than nothing to sustain your monthly expenses. You can only speculate, that other programs such as the unemployment benefits have the same effect.
The New York Times recently had an article about the "true facts" involving the usage of the $8,000 Tax Credit by "first time home buyers". Following is a short synopsis:
1-the rush is on to complete deals by the end of April 30, 2010
2-the deal must close by June 30, 2010
3-approximately 1.8 million bought homes
4-$12.6 billion in credit were collected
5-these group of buyers would have bought anyhow and some were inelegible
6-the ratio was 1:3 (one legitimate and three did not need it)
7-the true legimitate buyer received from the Fed about $30,000 or more
8-thousands that were not qualified received the credit
In conclusion, the Treasury Department performed an audit and found-out that hundreds of million of dollars went to buyers who had not yet bought a house or
who were not true first time home buyers and were not qualified based on the rules and regulations of the program.
What really happened here? Hypothetical insinuation, the people are depending more on the Fed (Socialist Capalism), to provide them with income incentives to sustain or increase their "cash flow", regardless of whether the applicable regulations pertain to legal ramifications with pernicious consequences projectively. The money received will be injected into the economy, use by the people to purchase staples and other necessities and consequently the $8,000 will be spent. You may want to speculate that the standard of living and wages are not at par with inflation and any amount handed over is better than nothing to sustain your monthly expenses. You can only speculate, that other programs such as the unemployment benefits have the same effect.
Thursday, April 15, 2010
NUMBER OF REAL ESTATE LICENSEES IN HAWAII
04/15/10 Maui Hawaii USA
According to a recent study done by the Department of Commerce and Consumers Affairs, PVLD, a total of 19,209 real estate licensees are practicing in Hawaii. The approximate population of Hawaii is around 1,290,000 and if you do the numbers, an estimated high percentage(%) of the population are real estate licensees. Just in Maui, which has a population of approximately 117,644 citizens, there are 2,902 licensees. What does this mean to the total number of multiple listings which are active in Maui and the total dollar value? Presently, according to statistics maintained by the Realtors Association of Maui (RAM), there are a total of 3,260 active multiple listings totaling $3,556,921,544. That is about 1.123 listing per licensee. Does this mean that there are too many licensees in Maui? If we breakdown the numbers in another fashion, there are 2,520 licensees, 175 corporations, 106 sole proprietors, and 101 LLC/LLP.
Last month in Maui, March 2010, a total of 70 single family residences were sold for a total of $40,838,789. Condos sold were 122 for a total of $107,277,684 and lastly, 12 pieces of land were sold for $8,156,900.
Latest economic outlook per the experts is sanguine, despite the fact that the state is suffering a deficit, the unemployment rate is about 9%, and production is down in many industries. Who do you believe? It is a fact that about 30% or more of the states employed are in the tourism industry and that a good portion of the state revenue comes from the real estate sector, eg. taxes. What does the future hold for Hawaii? Unless we think out-of-the-box and start developing an entrepeneur business development strategy we may be facing ambivalent economic woes. The ball is rolling and going towards the "red zone", the question is how do we deviate from the norm and force this ball towards the "green zone". Get it?
According to a recent study done by the Department of Commerce and Consumers Affairs, PVLD, a total of 19,209 real estate licensees are practicing in Hawaii. The approximate population of Hawaii is around 1,290,000 and if you do the numbers, an estimated high percentage(%) of the population are real estate licensees. Just in Maui, which has a population of approximately 117,644 citizens, there are 2,902 licensees. What does this mean to the total number of multiple listings which are active in Maui and the total dollar value? Presently, according to statistics maintained by the Realtors Association of Maui (RAM), there are a total of 3,260 active multiple listings totaling $3,556,921,544. That is about 1.123 listing per licensee. Does this mean that there are too many licensees in Maui? If we breakdown the numbers in another fashion, there are 2,520 licensees, 175 corporations, 106 sole proprietors, and 101 LLC/LLP.
Last month in Maui, March 2010, a total of 70 single family residences were sold for a total of $40,838,789. Condos sold were 122 for a total of $107,277,684 and lastly, 12 pieces of land were sold for $8,156,900.
Latest economic outlook per the experts is sanguine, despite the fact that the state is suffering a deficit, the unemployment rate is about 9%, and production is down in many industries. Who do you believe? It is a fact that about 30% or more of the states employed are in the tourism industry and that a good portion of the state revenue comes from the real estate sector, eg. taxes. What does the future hold for Hawaii? Unless we think out-of-the-box and start developing an entrepeneur business development strategy we may be facing ambivalent economic woes. The ball is rolling and going towards the "red zone", the question is how do we deviate from the norm and force this ball towards the "green zone". Get it?
FEE SIMPLE vs. LEASEHOLD IN HAWAII
In case you are not familiar with this real estate terminology, specially when you are buying property in Hawaii, following are the main characteristics, as follows:
FEE SIMPLE
Own land
Own property, or unit in a specific building
Own equity on both land and the property unit is located
Land may be inherited
Another legal term jargon "fee simple defeasible"
LEASEHOLD
Do not own land, you lease it for "x" numbers of years
Renegotiation of the lease could have an extension of the lease increase number of years
You pay a monthly "fee lease" to the owner of the land
You own the unit or property in a building
In a way you could be the "lessee" of the "lessor"
The fixtures you attach to the real estate may be removed at the expiration of the lease
Leasehod improvements cannot damage the property or conflict with the lease
Leasehold mortgage is a lien on the lessees interest in real estate
FEE SIMPLE
Own land
Own property, or unit in a specific building
Own equity on both land and the property unit is located
Land may be inherited
Another legal term jargon "fee simple defeasible"
LEASEHOLD
Do not own land, you lease it for "x" numbers of years
Renegotiation of the lease could have an extension of the lease increase number of years
You pay a monthly "fee lease" to the owner of the land
You own the unit or property in a building
In a way you could be the "lessee" of the "lessor"
The fixtures you attach to the real estate may be removed at the expiration of the lease
Leasehod improvements cannot damage the property or conflict with the lease
Leasehold mortgage is a lien on the lessees interest in real estate
Tuesday, April 13, 2010
AFFLUENT BUYERS AFFECTED BY FORECLOSURES
04/13/10
In this "D Grade Economy", even the affluent will be affected, according to reports by Realty Trac data. The chart is spiking up, and the numbers are increasing. The two most frequent articles on this subject have been published by THE WALL STREET JOURNAL and INVESTOR CENTRIC BLOG. What does this mean to the real estate industry? Basically, the lack of money or savings, decline in income or just an uneven debt to income ratio plus the uncertainty of the job market and the decline of employment hiring, will be a few of the factors contributing to the default of mortgages and foreclosures. The fundamental principles of an economy are lacking in our D Grade status. The "domino effect" started with the social income status of the "poor" and now to the "rich". Will it have an end? Fortunately, yes. But the inventory will be enormous, and to sell all these properties will take years. Borrowing money today is not an easy task, and the new Good Faith Estimate requirements are more stringent. The interest rates are low and the tax credit incentive will expire on April 30, 2010. What is next? Perhaps, a lowering of the interest rates and an extension of the tax credit for first time home buyers? At this juncture simplification and implementation of new incentives will be the motivators for the new buyers, if you will the "new generation of consumers", by the way more aware of the corruption of "elite capitalism vs. democratic capitalism". Every nation or empire that has tried to manipulate the level of affluency to a selective few has failed.
In this "D Grade Economy", even the affluent will be affected, according to reports by Realty Trac data. The chart is spiking up, and the numbers are increasing. The two most frequent articles on this subject have been published by THE WALL STREET JOURNAL and INVESTOR CENTRIC BLOG. What does this mean to the real estate industry? Basically, the lack of money or savings, decline in income or just an uneven debt to income ratio plus the uncertainty of the job market and the decline of employment hiring, will be a few of the factors contributing to the default of mortgages and foreclosures. The fundamental principles of an economy are lacking in our D Grade status. The "domino effect" started with the social income status of the "poor" and now to the "rich". Will it have an end? Fortunately, yes. But the inventory will be enormous, and to sell all these properties will take years. Borrowing money today is not an easy task, and the new Good Faith Estimate requirements are more stringent. The interest rates are low and the tax credit incentive will expire on April 30, 2010. What is next? Perhaps, a lowering of the interest rates and an extension of the tax credit for first time home buyers? At this juncture simplification and implementation of new incentives will be the motivators for the new buyers, if you will the "new generation of consumers", by the way more aware of the corruption of "elite capitalism vs. democratic capitalism". Every nation or empire that has tried to manipulate the level of affluency to a selective few has failed.
MARCH 2010 MAUI SALES
ANDRE ADOLOFFO, R(S), BAHAR, NAR,RAM member since 2005
(C)808-269-0879
(F)808-665-1947
(O)808-879-5700
Aloha, from Maui Hawaii, voted by CONDE NAST magazine, "best island destination in the world", fifteen times in a row. If you are thinking about buying or selling real estate, use my expertise. If you are going to buy real estate, buy in the "best destination". Last month in Maui, 70 single family homes were sold for a total of $40,838,789; condominiums were 122 for a total of $107,277,684 and land 12 were sold for a total of $8,156,900. Is this a "sanguine market"? Yes. it is.
Right now the "best deals" to buy are in every island, just pick one and search by going to http://www.remax.com/. If you are statistically and chart concious, just send me your email and I will send the stats. Thank you.
Respectfully Submitted, 04/12/10
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