FREE Real Estate Newsletter
Commentary & News Offered By Bruce Woodworth
The Information Herein Is For Educational Purposes Only
June/July, 2007
And So It Goes: The housing AND credit market bubbles are sort of officially bursting as the stock market finally tumbles. And only 10 days ago the stock market hit all time highs due to our marvelous economy and good times ahead. Read More about our Global Financial Bubble - By Former Reserve Bank economist Adrian Blundell-Wignall - Good read and doesn't seem to be a political statement.
Cash Will Soon Be King as many distressed properties start hitting the market in the United States, Australia, England and Europe. Some markets in California, Florida and Nevada have seen closing prices drop from their peak as much as 40%. Recovery is not expected soon - I'm guessing 2009.
What To Do Now: AVOID CREDIT and SAVE....The worst is yet to come.
Investment Resources: GoBigNetwork is a growing information network for small business entrepreneurs and venture capital sources.
Investment Scams: It is always prudent to check with North American Securities Administrators Association when approached with any new investment proposal.
Good News For Mexico: Playa del Carmen has a new multiple listing service and the State of Sonora is the first state in Mexico to require licensing for real estate agents. Find excellent source for Mexico News.
Caution: Sitting under a palapa on a white sand beach while watching the sun set with your favorite beverage may cause serious mental impairment! A real estate transaction in a foreign country should require the same documentation as your own country. Always try to work with established area professionals and always seek independent legal advise in foreign countries. Title insurance is now available in most foreign countries through First American Title Company or Stuart Title Company - a good start to assuring you will have legal title to the property you are purchasing.
Very Good Read: Inflation and Peak Oil.
May, 2007
Commentary: YES....and NO. The big burst has yet to happen but the housing bubble is deflating in many prime real estate markets world wide. The high profile glamour markets that have enjoyed multiple years of double digit appreciation are being hit the hardest while many lesser known markets are showing considerable strength as baby boomers seek second homes in warmer climates.
Good News: There is always opportunity for the long term, conservative investor in a declining market. Investment in vacation homes is still strong as millions of baby boomers seek warmer climates.
Caution: Vacation rental markets are saturated in many popular resort areas. Avoid investments based on rental income "projections".
Warning: The stock market is hitting new highs...and a profit taking sell off is just around the corner. News spin is suggesting we have a strong economy - I think NOT! The stock market is a glorified gambling casino which has very little to do with the existing economy. We are living in a global economy. Only weeks ago, the USA stock market was in free fall due to a glitch in the Asian stock markets.
Strategic Reality: A healthy and sustainable economy for any country requires a sustainable source of reliable energy....DUHHH! We will NOT have a healthy economy until we end the Iraq war and resolve our dependency on middle east oil.
Economic Reality: The USA consumer is drowning in mortgage and credit card debt, the cost of oil is out of control and our new congress, empowered by the people to find a solution for the Iraq war, responds with the single biggest pork barrel spending bill in history.
A Simple Solution: End our dependency on middle east oil. The USA needs to lead the world in the development of sustainable sources of energy.
USA Real Estate News: Housing Predictor provides real estate news and independent housing market forecasts for more than 250 cities in all 50 U.S. States. Find out whether your market is appreciating or depreciating.
UK Real Estate News: Find up to date market data and commentary on the UK housing market from HousePriceCrash.co.uk.
Europe Real Estate News: Spain, Ireland, Scandinavia, Holland and Italy - as well as Britain - have all enjoyed housing booms which are turning to deflating bubbles. New construction is down in France and home prices have begun to slip in the first sign that America's housing woes are spreading to Europe. Good Article - Read More.
Global Economics: Interesting article by Paul Volker, the former Governor of the Federal Reserve, discusses "An Economy On Thin Ice".
Caution: Sub Prime Mortgage Defaults in the USA may be a very serious problem by the end of this year. While various news articles may indicate that sub prime mortgage defaults will "not pose a serious problem", I have read some very disturbing articles otherwise:
"Troubles in the sub-prime market have just begun to materialize and already 38 main sub-prime lenders have gone kaput. Foreclosures have reached a 37-year high, and an estimated two million homeowners will be put out on the street in the next few years." Read More
October, 2006
Good News article On USA Retirement Options: Britton Falls, Indiana from the Indianapolis Star: Adapted from the Sun City retirement communities founded by Del Webb and industrialist Howard Hughes in the 1960s in Arizona, Pulte's Del Webb developments are spreading to several Midwestern and Northeastern states. Read More
Cross border real estate investments in Asian and Latin American countries are up 30% from 2005 and now comprise approximately 31% of all real estate transactions. This trend is expected to continue as major commercial developers target destination resort development and baby boomers continue to search for retirement alternatives. Read More.
Nicaragua Elections may have impact on foreign investment as several factions, including representatives from the old Sandinista days, compete for the hearts and minds of the population. Read More.
Good News: The National Association of Realtors® has formally signed its first joint reciprocal membership agreement with a foreign real estate organization. NAR President-elect Pat Vredevoogd Combs executed the agreement with the Mexican real estate association, Association Mexicana de Professionales Inmobiliarios, at AMPI’s 50th anniversary meeting in Mexico City on Oct. 5, 2006. Read More.
Commentary: Time will tell but this could be a big first step towards improved Mexico real estate services and much needed regulation of the Mexico real estate market. Currently, anyone can call themselves a real estate agent in Mexico and simple full disclosure is rare. Real estate buyers and sellers can help by searching for and working with those agents that have satisfied the educational requirements and incurred the expense for membership in AMPI and/or NAR.
Travel Alert: I regret to report that travel to the City of Oaxaca is not recommended for another month or two. Tensions are still high as citizens remain united against the existing state government. Travel to Puerto Escondido and Huatulco is not affected by the government problems in the City of Oaxaca. Read More.
Mexico Election: A U.S. government official in Mexico, who spoke on condition that he not be identified, expressed a buoyant optimism about Mexico's prospects now that the roiling controversy over who will succeed President Vicente Fox has been resolved. Read More.
Housing Bubble: Dig in, reduce your credit card debt and get rid of any adjustable rate loans. The stock market is up and gas prices are down a little - Does that mean all is OK???.... I doubt it. Can only suggest that you increase your cash reserve and avoid more debt.
USA Elections: Get out there and vote! Learn more about the issues and vote for the best qualified person.
Oil & Gas Commentary: So you don't believe that environmental pollution and global warming might be a problem for our children. Try this one on for size! Terrorism is funded by middle east oil profits - DUHHHH. The Middle East controls 59.9% of global oil reserves. Throw in Venezuela, Nigeria and Libya and we find that 72.7% of the global oil supply is controlled by non-democratic countries that knowingly support terrorism and the demise of the United States..... The numbers are staggering....total USA oil company revenues (and total known USA oil reserves) are simply chump change in oil world.
We are spending billions (or is it trillions) to "protect" our Middle East/Islamic oil supply. We throw billions at incidental disasters. How about letting the Middle East choke on their damn oil - just because. Am I missing something here??? We lead the world in technology. Why can't we lead the world and develop sustainable and renewable sources of energy?
| Global Oil Reserves |
Billions of Barrels |
Percentage of World's Supply |
| Saudi Arabia |
262,730 |
22.3% |
| Iran |
132,460 |
11.2% |
| Iraq |
115,000 |
9.7% |
| Kuwait |
99,000 |
8.4% |
| United Arab Emirates |
97,800 |
8.3% |
| Venezuela |
77,226 |
6.5% |
| Russia |
72,277 |
6.1% |
| Kazakhstan |
39,620 |
3.4% |
| Libya |
39,126 |
3.3% |
| Nigeria |
35,255 |
3.0% |
| United States |
21,371 |
1.8% |
| China |
17,070 |
1.4% |
| Canada |
16,802 |
1.5% |
August/September, 2006
Commentary: Factors which may have an adverse affect on USA AND foreign real estate investment for the next few years are mounting. Many USA real estate developers and speculators will soon be facing some major problems as home sales drop like a rock and inventory swells.
Good News: You will not have a problem if you do not need to sell your property. Real estate is generally recognized as the foundation for any long term investment or retirement strategy. New opportunities will soon surface at home and abroad as cash becomes king and good buys will abound as distressed speculators and builders will be forced to lower prices.
Good News: Foreign real estate investment will remain an attractive option for baby boomers who are looking for retirement and vacation alternatives. Plan for a 5 year holding period and do not become financially dependent on foreign vacation rental income.
Restrict foreign real estate investment to property which can be covered by an acceptable title insurance company. First American Corporation and Stuart Title offer global title insurance services in over 35 countries worldwide.
I grow weary from searching for "The Rest of the Story". Until 30 days ago, most all headline news stories were suggesting a strong economy and soft landing for the real estate market as the Fed continued to raise interest rates.
I am now reading that the real estate market is crashing and a serious recession may be just around the corner.....and the Federal Reserve Board is content for the meantime - whatever that means. All news appears to be supported by "Experts" - Go Figure!
Non-Expert Opinion: A collapsing housing market, soft auto sales, an ever growing federal deficit and escalating problems in the Middle East are about to cause some serious economic problems in the United States.
Stupid Questions: Does our growing federal deficit amount to "Taxation Without Representation" for our children???
Our Most Serious Global Issue
Foreign investment, travel, retirement and economic prosperity for you, me and most of the world is generally conditioned upon global peace.
Our current dependency on Middle East/Islamic oil is the worst and most obvious threat to global peace and economic prosperity since World War II.
SIMPLE FACTS & POSSIBLE SOLUTIONS:
1. THE COST OF OIL CAN ONLY GO UP FROM HERE. The "EASY" oil has been found long ago and known reserves are being drained. The future cost to drill in remote locations will exceed the cost for development of sustainable energy from sun, wind and bio fuels. Add the current trillion dollar cost of the Iraq War to the current cost of middle east oil and it becomes rather obvious what we need to do.
2. Question: Do we subsidize the poor oil companies which are showing the largest profits in history or should we subsidize/encourage sustainable solutions to our obvious energy problems???
3. The USA can near immediately eliminate the need for Middle East oil with safe and efficient automobiles which achieve 50 miles per gallon - and that's just a start to what can and must be done.
4. The USA can eliminate another 10 - 20% of total energy needs by supporting the expanded use and availability of bio fuels which also supports the ag industry and creates jobs.
WE, THE PEOPLE, are the problem...and the solution!! It is time we elected some leaders that can properly address our energy problems - not feed it. November, 2006 is the time for USA citizens to make a statement. We all need to get involved and VOTE.
Foreign Investment information is posted for Australia, Canada, Mexico, New Zealand and the United States. Find general investment, legal, tax and immigration information and resources.
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