Against my better judgement as a person who makes her living selling real estate investments, I am posting this article just for the fun of it – or maybe more accurately for the quiet education one may glean from it. Chuck Jaffee, a well-known Market Watch columist discusses what he learned from his father-in-law about an investment strategy unknown and unliked by our generation – the strategy of actively saving. In an era where “keeping up with the Jones’s” is a mantra and a way of life, Jaffee’s father in law reminds us that it doesn’t have to be that way. He reminds us the difference between needs and wants, cost vs. utility, and the glory of knowing that while your money may not be growing in giant leaps and bounds, knowing that it is safe and still may provide more benefit in the long term. In summary, I think his main message may be that “peace of mind cannot be bought.” While I am certainly not suggesting that we all liquidiate our assets, sell all our stocks, bonds and real estate, it is refreshing to know that someone out there made it to the end without all of these things, and they did just fine. In the words of Ben Franklin “A penny saved is a penny not borrowed tomorrow.” Enjoy a different kind of investment strategy story here.
Archive for May, 2008
A fully invested life . . .
Published May 29, 2008 Uncategorized Leave a CommentTags: investment story
America’s wealthy see buying opportunities in sluggish real-estate market
Published May 29, 2008 National News Leave a CommentTags: investment properties, real estate market, recession, wealthy americans
Check out the opinions and comments at the bottom of the article, and then add yours to the comments section of our site. We’d love to hear what you think.
Top 15 home updates and what they mean to the bottom line when selling your home.
Published May 23, 2008 Uncategorized Leave a CommentTags: Austin renovations, home improvements, home renovating
I thought that some of you would appreciate this neat page from HGTV’s “Front Door.com” which is their new real estate arm of the company. The functionality of this page allows you to see what various home improvements will bring to your home’s final dollar sale, and also allows you to see what these improvements may entail. I think their projections are perhaps a little high, but still provide value, if you are thinking about renovating a part of your home. If you have your own renovation opinions, I hope you’ll include them in the comments section. Check out the tool here.
Shore Condominiums opens
Published May 22, 2008 condos , Development News , downtown Leave a CommentTags: downtown austin condos, new construction, Shore condos, Shore photos
Recently, the Shore Condominiums opened its doors for the first residents in the building. The 192 unit, 22 story tower was developed by High Street Residential, a subsidiary of Trammell Crow, and constructed by Harvey Cleary contractors. Upon opening, only 3 or 4 of the 192 units remain available for purchase. The building was designed by WDG Habib architects with interiors by Duncan and Miller. Layouts include 1, 2 and 3 bedroom units and range from 599SF to 2500SF. Pricing ranges from $200,000 to $1.6MM. Amenities include a fourth floor fitness center and sixth floor pool deck with outdoor kitchen and cabana.
Click below for a slideshow:
Jeff Hand from San Francisco, and his company SOMA Properties, has ressurected its plans for the redevelopment of the Don Mar project on South Congress. The plans designed by Dick Clark were originally slated to house 26 one bedroom units and 39 two bedroom units for sale with 6,000 SF of ground floor retail, but what I interpret to be a circumstance of the current market, the developer has opted to make the units rentals instead, at least until the buying market returns to its former strength. SOMA bought the property in 2006 from another developer out of San Diego. This adds to the continued trend of projects once slated for sale that are now going to be rented as apartments instead. Several months ago the 305 unit, 29 story Monarch building at 5th & West Avenue reverted from condos to apartments. ZOM, the Monarch’s developer, has a history of building to condo specifications, renting a property for 4 – 6 years and then selling off the units as condos. I’m not sure if Soma’s long term plans are to sell the Don Mar units as condos when the market improves or simply sell the whole complex to an institutional or mid-level real estate investment group. Either way, the new property should add additional vitality to a block of South Congress that has long been neglected. The San Jose Lofts, a planned neighboring project to the Don Mar, is to be developed by the owners of the Hotel San Jose in conjunction with Dallas based Winston Capital. It has yet to begin construction but is still reportedly in the works.
Austin ranks third on recession-proof cities, by Forbes
Published May 20, 2008 Uncategorized Leave a CommentGood news for real estate, jobs, and all things related. Read the story to learn who else tops the list and why.
Austin keeps truckin on job creation
Published May 20, 2008 Uncategorized Leave a CommentTags: Austin jobs, population
Providing more evidence of Austin’s economic resilience, the region added 4,100 jobs last month with big gains in sectors such as hospitality and professional and business services.
Love seeing this — read the full story here.
National Housing Market Recap: “What Happened to Goldilocks”
Published May 20, 2008 National News Leave a CommentTags: National housing forecast, Presentations
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After the tech bubble burst and 9/11 occured in 2001, the Federal Reserve drastically cut interest rates in an attempt to stave off a recession or curb its effects
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The decline of the stock market, particularly within the technology sector, coupled with historically low interest rates fueled the largest real estate purchase spree in U.S. history as consumers moved their assets into real property
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The overheated market inflated values to an unsustainable level in the coastal market regions as well as other pockets of the U.S.
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Unlike other sectors of the economy, the U.S.
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Energy costs currently account for 4% of U.S. consumer spending. This compares with less than 1.5% in 2005
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The Bear Stearns scandal coupled with national media headlines caused the Capital Market Sector to overestimate real losses due to subprime foreclosures
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The overestimated subprime losses led to panic across the capital markets. The result was a $900 billion reduction in debt offering to the public, which subsequently caused the U.S. GDP to decline 1.5% to a near-recession growth level.
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The Fed has since been aggressive in improving liquidity which has had a significant impact in tapering the economic downturn over the last several months.
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The office sector was not significantly overbuilt (nationwide), and continues to look strong as the capital markets sector that services office clientele has not been as affected as residential.
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Additional price reductions of 5 – 10% are predicted for the hardest hit unemployment regions and the most inflated real estate markets. These include California, Florida, Michigan (particularly Detroit) and other isolated coastal markets.
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The weak dollar has spurred purchases by foreign buyers (mainly Asian and European) in heavily international markets including New York City, Hawaii and Seattle. These markets continue to flourish, with some properties in Manhattan even setting sales records. Expect to see this pattern expand to other U.S. cities if the weak dollar continues.
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Dr. Greenlaw projects an increase in GDP for the third quarter from tax rebate checks, but expects the growth to be short lived and subsequently fall in the fourth quarter this year.
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Expect the retail sector to suffer in the coming 24 months as consumers battle increasing gas prices, food prices and inflation.
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Restoring confidence to the capital markets is key to returning GDP growth.
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Jumbo mortgage sector will likely return to normal is 6 – 18 months
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Sub-prime sector unlikely to return
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Job growth is the # 1 driver for any market at the local level – play close attention to this indicator. Texas as a whole is very fortunate in this regard, and now hosts the most Fortune 500 companies of any state – more than even California or New York. Side note: the Texas workforce reported 2.7% job growth this week, which declined from this time last year, but is roughly double the national average at present.
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Consumer costs may decline in Q1 – Q2 2009, helping the residential market to stabilize and return to normal
Austin wakes up to Wilshire Woods – investment potential?
Published May 20, 2008 Development News Leave a CommentTags: East Austin, investment
Convenient location, midcentury style and relocation of airport draw new interest to East Austin neighborhood. Read the full story here.
Barton Place, the highly anticipated, home grown Austin condo project located behind Austin Java and Uncle Billy’s Barbeque on Barton Springs broke ground last week and nearly on schedule, an unusual accomplishment in the downtown condo market. With approximately 98 units under contract, the 270 unit complex features hardwood Pecan flooring recycled from the trees on the site, granite counters, and stainless appliances as well as community features like a pool, yoga studio and group gardening area.
Personally, I am particularly drawn to these units, partially because of their low-rise build style, and authentic Austin feel, combined with their convenient location that is in a truly walkable neighborhood. Read the story here.
