Real Estate Investing Links for November 25, 2009

Proposal Ruffles Builders

inspectionThe Austin Business Journal reports on Austin builders’ rejection of a new ordinance under the 2009 International Energy Conservation Code. The code includes heating, ventilation, and cooling inspection for every single or two family unit and all multifamily property 10,000 square feet or more. Although statewide acceptance is required for federal endowments, Austin builders are protesting the ordinances – saying that adoption would lead to increasing home prices and urban sprawl. Advocates of the ordinance claim that many Austin builders already “exceed the requirements” so the market will be largely unaffected.

How to Own and Manage Commercial Properties

The Daily Press reveals the differences between residential and commercial property management. The management of these properties have some things in common, like the necessity of effective tenant relations. However there are differences that some recent multifamily owners may not be aware of. This article addresses the increased importance of professional maintenance when managing a multifamily building, and highlights some other important factors for your consideration.

How Real Estate Investors Get it Done – Tax Strategy

taxThe Bawld Guy expands on purposeful planning when receiving tax advantages through real estate investment. He emphasizes the use of depreciation in gaining a tax shelter and offsetting capital gains. Outlining the distinctions between planning tax strategies for cash flow versus for capital growth, the Bawld Guy shares several useful tips that all investors should know. Refer to this article to learn how these strategies affect you according to your income and level of depreciation.

Are FHA Loans Increasing $100,000?

The Real Estate Bloggers report on Congressman Barney Frank’s attempts to increase FHA lending limits by $100,000. The opposition points to the recent fear of an FHA handout and disapprove of extra risk, claiming that the condition of Fannie Mae and Freddie Mac are evidence that these policies do not work.

Inflation is the Real Estate Investor’s Best Friend

inflationFlorence Foote expounds on why inflation is fantastic for real estate investors and detrimental for those still stuck in a 401(k). Although this economic phenomenon is bad for most other investments, through “leverage ratios and cheap fixed rate financing” it has become the real estate investor’s best friend. By getting fixed rates, investors will be paying back loans with dollars that have little value while receiving skyrocketing rents from tenants. The Bigger Pocket’s Blog references the real estate maxim “don’t wait to buy real estate, buy real estate and wait,” to explain why this investment dominates lousy post-inflation returns on 401(k’s).

Freddie Mac’s Delinquency Rate Raises for 30th Month

The Real Estate Economy Watch covers continuously increasing delinquency for single family mortgages. A loan is considered delinquent when it has been past due for 90 days, a term that is becoming a reality for now 4 million home owners. Freddie Mac’s rate is still “lower than the national average,” with FHA bearing the worst rate.

Investors Eye Appartments, Distressed Properties

hawkAccording to this article from Retail Traffic, 50% of investors say now is the time to invest in multifamily property! The percentage goes up to 80% when referencing those who are already invested. With national vacancy rates up and a general feeling that rents will hold going forward, investors are facing a wave of apartment buying fever. Even those who feel that rents will drop, only expect a 1% decline – much less than what was originally expected. Investment in distressed properties will also accelerate, as the availability of these investments is presumed to have increased exponentially by 2010.

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