Gold and Real Estate Prices

In the interest of full disclosure, I must confess that I’m not a fan of home ownership. If fact, if not for the need to keep a wife happy, I would be a near life-long renter. Why? The math that your home is a great investment requires a substantial amount of accounting fraud to justify.  A few years back, I sold an average home after holding it for 11 years for a gross profit of 79%. Not bad on the surface. However, when I did the math and added up all the cost of all the maintenance, taxes, and other ownership costs I paid over the years, I actually lost 10% vs. the cost of renting the same property.

Only when measured in gold, whose price fell -25.55% during those 11 years, and precious metals ira does my home investment look less bad. Because the value of our debt-based, fiat-created federal reserve note is never a constant, using gold to measure historical real estate prices yields some interesting data on current home prices. In 1970, as Nixon was about to hack the dollar from its gold peg (still the worst policy blunder in my 50 year life), the medium home price in America was $23,000 – or a very expensive 605 ounces of gold.

Soaring inflation into 1980 may have boosted the medium home price to $62,000, but measured in the real money of gold, home prices fell to just 101 ounces of gold.

For the next 16 years, and into the real estate bubble top in 2005, the medium home price rose to $225,000 or 545 ounces of gold. Since 2005 it’s been all downhill with the medium home price now down to $178,300 or 162 ounces of gold.  One does not need to be a genius to see we are in the process of retesting the 1980 low where about 100 ounces of gold bought an average home. Obviously many local real estate market’s average homes are already below 100 gold ounces (think:Detroit).

 So is gold giving us a heads-up that it’s a good time to buy a home?

 Well, all I can tell you is that this career renter, (who sold his last house into the 2005 top) thinks we are very close. Just like with horseshoes and hand grenades, close counts when it comes to any major market turn in real prices (measured in gold). Homes selling for less than what they cost to build just a few years ago is another hint that we may be near a long-term bottom.

Given the catastrophic potential for MUCH higher mortgage interest rates in coming years, anybody borrowing money to buy should not wait. However, those paying with cash may want to keep their house money in gold a while longer.

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New York City prices went up 2% in 2013

The median price for a home in New York City rose 2% in 2013 to $475,000 in New York City, including the outer boroughs. Home prices in the Bronx actually dropped 2%. Manhattan and Queens showed the strongest growth. Brooklyn went up half of one percent, while Staten Island remained steady.

While the collapse of the real estate market is over, the real estate boom that the media and the economists’ custom essays have been buzzing about does not seem to be with us yet. Some neighborhoods have been rising, but most of the City remains very steady.

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Lower Priced Properties selling much better in Manhattan than luxury real estate

The average listing price in Manhattan as of January 22, 2014 is $3,026,526. This is down $49,517 from the beginning of the year. But while there are a lot of high end properties for sale in Manhattan, the price of average sold property is only $1,101,000.

The price of the listings highly depended on the neighborhood ranging from the average of only $983,627 in Harlem to a whopping $7,541,793 in Tribeca.

Average price per square foot in Manhattan is $1,347.

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Increasing Corporate Services for Small Businesses

A commercial property, particularly that of a small business owner, was normally the entrepreneur’s own problem in the past. The owner had to staff it, market it, clean it, and otherwise maintain the business.

Increasingly, it is not so anymore. Marketing companies sprung up to help build clientele for the small business. Staffing companies not only recruit personnel, but also train new employees. And cleaning companies like CheckMaid NYC provide janitorial services.

More and more businesses find it not only possible, but cost-effective to outsource as much as possible while focusing on providing the service they truly want to concentrate on.

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Internet Marketing Tips for Real Estate Agents

We spoke to Jeremy Richards, an online marketing expert for Marketing-Heaven.com that has become a leading advertising consulting service for US poker sites about the kind of information real estate agents should be on their web site to promote their business. The following are his recommendations:

Compelling Content – Remember that while flash animation can capture someone’s attention momentarily, you will need to have significant text content on the homepage that your prospects would want to read.

Action-Oriented Navigation – Having all the great buyers and sellers tools in the world won’t make much of a difference if your navigation doesn’t advertise them well. Place the emphasis in your navigation on words that clearly state the actions your visitors can take on the site by clicking through to the interior pages.

Concise Design – Custom graphic design can look very appealing, but just make sure that your homepage doesn’t have too much going on. Often times, if a visitor feels like there are too many choices, or has a hard time figuring out what the main emphasis of the site is, they will click away.

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Bill of Sale loans

A bill of sale, also known as a logbook loan in Great Britain, is a legal document made by a seller to a purchaser, reporting that on a specific date, at a specific locality, and for a particular sum of money or other value received, the seller sold to the purchaser a specific item of personal, or parcel of real, property of which he had lawful possession. It is a written instrument which evidences the transfer of title to personal property from the vendor, seller, to the vendee, buyer.

It is not used to purchase or sell real estate, but rather as a means of securing a loan. These loans generally have very high interest rates and some claim that they feature unfair terms and conditions. Many of the people getting these loans have bad credit and need cash quickly, thus willing to pay exorbitant interest on of high processing fees.

In both the U.S. and the United Kingdom, the government discussed whether to ban these loans, but ultimately decided that these loans should remain an option for people who need an emergency infusion of cash in as quickly as 15 minutes.

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Should cash for structured settlement payments be used to pay off a mortgage?

Should cash for structured settlement payments  be used to pay off a mortgage? In most cases, we suggest that they should not. Why? The math is simple: your mortgage interest will be lower than the loss you will take to get cash for a structured settlement.

If your interest is very high, refinancing the mortgage makes a lot more sense. Cashing out structured settlements should be used for emergencies, as well as to make the ends meet when you are temporarily unemployed. It should not be used to pay off the mortgage on your real estate.

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