A thought for Thanksgiving!

What has happened to the age old investment adages of Buy Low – Sell High and Buy on Bad News, Sell on Good News? It seems we are in the exact opposite state of mind.  Everyone is trying to sell either from necessity or fear… And not buying because of fear…

How many times have you seen or heard the following?

Bring any offer
No offer is too low
Seller must sell

WHERE ARE THE BUYERS? WHY ARE THEY NOT BUYING?

With the FED’s announcement of a massive new program to buy mortgage-backed securities rates have made a historical drop.  This perfect storm of pricing, supply, and mortgage rates is not likely to been seen again in our lifetime. 

Ask your potential buyers do you want to be in the first wave and get the Best deals or in the second wave and get the ok deals?  To use a basketball phrase now is the time to “cherry pick”.

One final thought to remember – Nobody ever times the top or the bottom – Has the real estate market hit bottom? No one knows… However, it is HIGHLY unlikely we will see another 20 or 30% pull back in pricing…

NOW IS THE TIME TO BUY REAL ESTATE… Real Estate is cyclical and the greatest long term investment on earth.

A bailout for the real estate market and maybe the economy

…a simple two part solution that will not cost taxpayers a dollar out of pocket 

With billions of dollars flowing into various industries and no apparent results or an end in sight, what is the answer?  By now, everyone is aware the root cause of the economic downturn is real estate and real estate mortgages.  

The solution is simple.  The first part everyone will like.  The second part will not be so popular, but is an evil we will have to live with.

First, we are all aware that outside of diminishing consumer confidence largely perpetuated by the media; the biggest trouble in the housing industry is SUPPLY.  There are simply too many homes for sale!  How do we cure this problem?  We need demand and urgency… 

If Congress would enact a law making every real estate purchase completed prior to December 31, 2009, exempt from Capital Gains, investors would flee the instability of the stock market and flood into the real estate market.

The demand comes from the investors leaving the stock market and others looking to capitalize on the exemption…they have to have somewhere to put their money. 

The urgency comes from this being a ONE YEAR exemption.  Any home bought in the 2009 tax year will not be subject to Capital Gains Taxes when sold – EVER.  With people flooding back into the market not only will inventory/supply dwindle, prices will stabilize, homeowners will regain equity lost, and much more.  With regained equity and stability, consumer confidence will be improved and people will start spending money again…and in turn jobs will be created.

The Second part needs a little preamble – A lot of you are going to say this is not “FAIR.”  I will retort with my standard answer to this childish word – “NOTHING IN LIFE IS FAIR.”  Fair is a word that should only be used by children because the concept or at least the execution of fairness does not exist in the real world.

On to the second part of the solution – Mortgage resets, troubled mortgages, and mortgages in some stage of foreclosure.  

These properties are FLOODING the Real Estate market with “For Sale” homes that should not or do not need to be “on the market.”

Congress needs to pass a law resetting every home mortgage for owners that are more than 30 days behind.  This means that the deficiency (delinquent payments) would be added to the back end of the mortgage allowing homeowners to get caught up.

Congress also needs to pass a law resetting every Adjustable Rate Mortgage (ARM) to a flat fixed rate in the range of 5.5% to 6.0% and extend out the mortgage term of the loan. This will help the homeowners who qualified at teaser rates, but now cannot afford payments that have increased more than 50%.  To stabilize the market, we need these people to stay in their homes and keep them off the market.  Is this going to save everyone?  Of course not!  Some people can’t be saved and this is just another fact that proves nothing in life is fair.

I know your thoughts - What about me? I have been working my tail off to pay my mortgage on time. Why should they get a break and not me?  Well, you are getting a break…just not one that is immediately visible.  What good is it if you are paying your mortgage and four of the homes in your neighborhood go into foreclosure and sell at auction for FRACTIONS of their value?  If you bought your home for $300,000 and 4 similar homes in your neighborhood sell for $200,000 – your home is not worth the $300,000 that you paid.  It is now likely worth $200,000.  So, with the loss of property value, your bank may freeze or cancel any equity lines that you have tied to your property.  Are you seeing any benefit yet?

Are these two suggestions some magical cure for the economy?  No they are not.  However, these changes could be a strong foundation to stimulate economic recovery.

Just the ramblings of a Myrtle Beach, SC Realtor®

Myrtle Beach Feed a Family

Did you know …1 in 5 children in our Country are living at or below the poverty line.

This holiday season, let’s join together to feed families in need. Let us show our thanks and appreciation for all we have been blessed with in our lives by bringing blessings into the lives of others. Last year we succeeded in feeding 500 families. Our goal this year is to raise enough money to personally deliver a turkey dinner on Christmas Eve to another 550 families.

We have partnered with Chef Peter Gennaro of Hilton Myrtle Beach Resort. The Hilton is generous enough to volunteer their labor and provide the meals at their cost. We are estimating that for $35 per meal, we can put smiles on the faces, love in the hearts, and warm food in the stomachs of an entire family.

Now that you know … How many families will you feed?

We are inviting you to help in any of 3 ways: donating money, volunteering your time to deliver the meals, and/or directing us to families that could benefit from the meals.

Matthew 25:31-46
‘I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.’

Any assistance would be greatly appreciated.

Call us with your gift:

Richard Lewis 843-742-3379            Jason Green 843-446-7195

Abe Safa 843-424-2122                    Greg Harrelson 843-457-7816

Jeremy Finger 843-222-6602             Jason Ellis 843-222-2672

Breaking NEWS!! MYR International Airport to get expansion!

A much needed boost for all of Coastal Carolina!

A bigger passenger terminal at Myrtle Beach International Airport was cleared for takeoff Tuesday after Horry County Council voted in favor of a $130 million project that would expand the terminal from seven to 12 gates.

“If I had some fireworks, I’d be lighting them right now,” said County Council Chairwoman Liz Gilland after the council voted 10-1 in favor of the third and final reading of the airport project.

One of 3 possible expansions

Myrtle Beach International Airport
The Myrtle Beach International Airport is a full-service facility that serves as the gateway to the Grand Strand. The Myrtle Beach International Airport is owned by the County of Horry and operated by the Department of Airports.  The airport, as directed by County Council, is developing a program to increase passenger terminal capacity on the east side of the airport.

Terminal Capacity Enhancement Program (TCEP) Goals
• to produce an enhanced commercial aviation facility, based on stakeholder input, in a timely and fiscally responsible manner.
• To adequately provide for both Myrtle Beach residents’ air travel needs and the “product” sales role for tourism that supports and strengthens the local economy.

Picture Perfect Second Home – Myrtle Beach, SC

The perfect second home starts with the perfect location… Myrtle Beach, SC – Clear water, miles of sandy beaches, green golf courses, tons of nightlife, amazing restaurants, and countless other activities put Myrtle Beach right in the middle of Location, Location, Location…  Add unmatched hospitality to the mix and it is easy to see why Myrtle Beach is a top vacation destination.

Resort life, Legends Golf Community, offers all at that is expected of a Coastal Lifestyle! 

Perfect Second Home in Myrtle Beach, SC

1300 acres of recreation and relaxation – 3 onsite golf courses, 30 acre lighted driving range, jogging/biking trails, 4 pools, 2 hot tubs, 2 restaurants, tennis courts, and an Owners Amenity center make you feel as if you are living in Tropical Paradise! 

Situated perfectly in the middle of this Coastal Paradise is 4499-A Girvan Drive – A three bedroom, three baths, 2 car garage townhome with all the features of home.  This spacious town homes 3 bedrooms are comprised of two master suites (one downstairs, one upstairs) and a 1st floor guest bedroom.  This bedroom setup is perfect for those looking to split the cost of ownership with another couple or individual. 

http://video.google.com/videoplay?docid=121966440906923320

The Facts
1925 Heated Square Feet
2842 Under roof
3 bedrooms 3 bathrooms
2 car garage
List Price $339,900

Features
Corian counter tops
Screen Porch, Patio, Balcony
Eat-in Kitchen
Walk-in Closest

Why should I own a second home?

The number one reason to own a second home is for the enjoyment it brings. While the financial implications need to be considered, the main goal is for your second home to be fun, relaxing, and enjoyable. 

Enjoyment
A second home offers a getaway from the stresses of everyday life, giving you an opportunity to recharge, relax, and gain perspective. Whether it is playing golf, relaxing on the beach, playing tennis or whatever makes you happy your second home should be considered your R&R headquarters.

Retirement
Real Estate is an investment in your future. Your favorite location might be a lot more expensive in 5-10 years when you plan on retiring. There are great values in the Myrtle Beach market and if you are not ready for a home or condo you can always buy a homesite and build your custom home when you are ready.  

Investment

• Diversification: With the instability of the stock market real estate offers a chance to diversify into a non-aggressive investment.
• Appreciation: Despite all the negative Media reports and some short term loss of value, Home Values long-term have and will continue to rise.
• Rental Income: Renting your second home can often offset Home Owners Dues (HOA Fees), Insurance, Taxes, and sometimes depending on the desirability of the property even help with the mortgage.
• Taxes and Mortgages: Cost associated with second home ownership often provides tax right offs during ownership or when you sell the property. Please consult with your accountant if this is the main reason you are purchasing a second home.

Don’t be overly optimistic on rental income… Your vacation home will not pay for itself immediately and in perpetuity. A vacation home can be a great engine for your money, but it takes careful planning, good advice, and guidance. Do not buy a second home on the assumption that it will pay for itself.  

The time has never been better to purchase real estate if you are thinking of a second home, primary residence, or looking to diversify your investments please contact me.  There is tremendous value in the Myrtle Beach Real Estate market – Now is the time!