MIRJANA's Blog

Where this market go?

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Sat, 29 Mar 2008 00:21:35 -0500

It's very sad that almost every other property listed in Portland, OR and Vancouver, WA it's a short sale property. I drive my client all day today to show him a properties in Vancouver, WA in the price range 180k-200k and we have seen almost 10 houses but we find a only two homes that is not a short sale property.

Today we write an offer on the property that was purchased in 2005 for 235k and today asking price is 194k hard to believe but this house is over 2000 sq ft 4 bedroom 2.1 bath and is very well take care of.

Where this market go, every time I enter a short sale property I think of the owner of the house, how disappointed is that American dream of owning home last very short a period of time a less then a 3 years. No equity in the property the only thinks most sellers looking for is to sell the property for what they owe on.

Scare and very sad situation but I hope with all my heart that this will change one way or another.

HAPPY EASTER!!

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Sat, 22 Mar 2008 14:40:07 -0500

TO ALL OF YOU WHO ARE IN SOME WAY IN REAL ESTATE MARKET HAPPY EASTER

FOR BUYERS: I WISH YOU FIND YOUR DREAM HOME

FOR SELLER: I WISH YOU SELL YOUR HOME FOR A TOP DOLLAR

FOR AGENTS: I WISH YOU HAVE A LOT OF BUSINESS THIS SPRING HELPING YOUR CLIENTS FULFIL THEIR DREAM

FOR MORTGAGE PROFESSION: I WISH THAT MORTGAGE BUSINESS IMPROVES

FOR ALL WORLD: I WISH TAHT EVERYONE CELEBRATE EASTER AND SPRING TIME IN THE PECASE

JUST LISTED HOME IN VANCOUVER, WA

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 20 Mar 2008 01:00:32 -0500

GREAT VANCOUVER HOME FOR SALE**HUGE LOT**MOTIVATED SELLER 3 BEDROOM 2 BATH 2 CAR GARAGE A/C SPRINKLER HUGE LOT OWER 10,000 SQ FT NEW ROOF CUTE AND CHARMING QUIET NEIGHBORHOOD CALL AGENT TO FIND OUT MORE 503-250-1471 http://www.goodnameagent.com/

Craig Proctor system matters?

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 20 Mar 2008 00:49:05 -0500

In last March isses of "realtor" magazine I find an article under Profiles in Real Estate Success is actualy on pg. 7. This article talking about Teaxs real estate agent who was a School Teacher before he decide to join a real estate world. In first 8 months he sold about a 6 homes and made less as a real estate agent than as a teacher. Soty goes on and on and then he join a Craig Proctor group and Quatum Leap System. Last year he did 113 transactions and his business booming every months.

Please share with me if you ever try this system and how is work for you.

Thanks for support.

Buying a Leads

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 20 Mar 2008 00:28:12 -0500

Most every day I received a phone call from some leads company and I am wondering it's is worthed to try. My biggest concern is high feess per lead and second is waisted money for a lead that are not "valid" lead. There is always a part of me that want to try to purchase a leads however second part of me screaming "don't, don't"

If you have any sugestion or you have some experience would you please share with me.

Thanks.

Mortgage Matters

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 20 Mar 2008 00:23:04 -0500

The FED cut their rate by .75 points yesterday. Their discount rate is now 2.5%. The markets wanted a 1% cut and the economists wanted only.50, so the FED split the middle.

The FED also opened up their window (teller window) to allow investment banks and other institutions to borrow using mortgages as collateral. It used to only be banks and no mortgages. This seems to have helped. Now banks can stay liquid as they try to sell mortgages off their lines and portfolios.

Another major move along the same lines is that Federal Regulators reduced the capital requirements for Freddie and Fannie. They used to have to have a 30% cushion in cash to offset any losses. Now that is reduced to 20%.

Both moves have increased the money supply without creating more money or weakening the dollar further. With this new cash we are hoping the lenders will loosen up a bit.

Rates have stayed about the same swinging around a lot but within a very short range. The hope is that as the changes sink in the rates will come back and as lenders loosen up the RE Market will start to improve.

RATES TODAY:

5.625% 30 year fixed

5% 15 year fixed

5.5% FHA/VA 30 year fixed

Jumbos and 3, 5, and 7 year ARMS are still priced way high.

CNN Money Magazine--latest article about the foreclosure

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 03:12:07 -0500

Most under-valued housing markets

Where to find the best bargains

City	State	Median home price	% undervalued
Houma	LA	$116.5 -31.2%
Dallas	TX	$134.5 -30.0%
Houston	TX	$119.3 -29.1%
Shreveport	LA	$101.2 -28.6%
Lafayette	LA	$128.8 -26.2%
College Station	TX	$104.1 -25.8%
Fort Worth	TX	$111.7 -24.9%
Alexandria	LA	$93.3 -24.8%
Monroe	LA	$93.4 -24.6%
Lake Charles	LA	$99.9 -23.8%

Source:National City Corp. and Global Insight

Special Report

NEW YORK (CNNMoney.com) -- It may be the best time to buy a house in more than four years.

Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report.

The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

"Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years."

But DeKaser cautioned that home prices could fall even further.

"This isn't to say home price declines are over," he said. "We could move below historic norms. By the end of 2008, housing markets could be broadly under valued."

Prices still improving

There are still 21 housing markets, or 6% of those surveyed, that are severely over valued, including Atlantic City and Madera, Calif. That's down from 56 overvalued markets at the peak of the housing bubble in 2006.

The report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.

The report also factors in market intangibles that make some areas more desirable places to live, and more expensive.

"Declines are no longer confined to once-frothy markets," said DeKaser.

The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there's reason to believe that valuations are even more favorable for buyers today.

Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.

The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.

Bend, Ore. currently tops the overvaluation list. Home prices there were judged to be about 59% higher than their fair-market value. Miami, despite a median home price decline of 5.7% last year, is the most overvalued big city, by 44%.

All the best bargains were found in Louisiana and Texas. Houses in Houma, La. were under valued by 31.2%, according to the report. Dallas was the most undervalued big city, by 30%.

TIME Magazine great article

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 02:51:07 -0500

Finaly someone take a positive approach of this market. Please enjoy reading this TIME Magazine article. I even forward this article to all my clients as a good references.

Famed Money Manager is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.

That's no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It's enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?

There has rarely been a moment in history when you couldn't scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, "in spite of all the great and minor calamities that have occurred ... all the thousands of reasons that the world might be coming to an end--owning stocks has continued to be twice as rewarding as owning bonds."

A top reason to not buy stocks, in Lynch's view, is if you don't already own a home--in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me--housing debacle and all.

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already--or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be.

It's more complicated if you must sell before you can buy. But that logjam won't persist forever--and if it appears you'll be trapped for a few years, try to refinance at today's lower rates. Risks always seem most acute when the headlines give you ulcers. But that's exactly when you should think long term--and get off your thumbs.

A letter of recomendations for a fired agent---JOKE

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 02:15:59 -0500

Have to write a letter of recommendation for that fired Agent?

For the chronically absent:
"A man like him is hard to find."
"It seemed her career was just taking off."

For the office drunk:
"I feel his real talent is wasted here."
"We generally found him loaded with work to do."
"Every hour with him was a happy hour."

For an agent with no ambition:
"He could not care less about the number of hours he had to put in."
"You would indeed be fortunate to get this person to work for you."

For an agent who is so unproductive that the job is better left unfilled:
"I can assure you that no person would be better for the job."

For an agent who is not worth further consideration as a job candidate:
"I would urge you to waste no time in making this candidate an offer of
employment."
"All in all, I cannot say enough good things about this candidate or
recommend him too highly."

For a stupid agent:
"There is nothing you can teach a man like him."
"I most enthusiastically recommend this candidate with no qualifications
whatsoever."

For a dishonest agent:
"Her true ability was deceiving."
"He's an unbelievable worker."

Congratulations on Your New home---JOKE

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 02:14:07 -0500

A client bought a new home and the broker wanted to send flowers for the occasion.
They arrived at the home and the owner read the card; it said "Rest in Peace".

The owner was angry and called the florist to complain. After he had told the florist of the obvious mistake and how angry he was, the florist said. "Sir, I'm really sorry for the mistake, but rather than getting angry you should imagine this: somewhere there is a funeral taking place today, and they have flowers with a note saying, "Congratulations on your new home".

MORE FUN

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 02:12:16 -0500

Here is some more fun stories about the Real Estate. Enjoy your day and cheer up

More to come

Modern Homes

A Modern home is a place where a switch controls everything but the kids, and it has gadgets to do everything except make the payments.

Typical Home

A typical home has a TV set that is adjusted better than the kids

Real Estate Humor

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 01:50:09 -0500

My buyer told me that he lived in the same house for 10 years. When I checked, I found out he'd still be there
today if the Governor hadn't pardoned him.

Why do you have your front door leading right into the dining room? So my relatives won't have to waste any
time.

The sellers told me their house was near the water. It was in the basement.

How much are they asking for your rent now? Oh, about twice a day.

I have a temporary mortgage. What do you mean temporary? Until they foreclose.

Realtor sign--We have "lots" to be thankful for.

Realtor: first you folks tell me what you can afford, then we'll have a good laugh and go on from there.

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.

There is no longer a need for the neutron bomb. We already have something that destroys people and leaves buildings intact. It's called a mortgage.

If you think no one cares you're alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won't pay.

I listed a maintenance free house. In the last 25 years there hasn't been any maintenance.

Did you hear about Robin Hood's house? It has a little John.

My agent was always smiling. I didn't think anybody could have that many teeth without being a barracuda.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

Houses today don't have enough closet space. Sure they do. They're just called guest bedrooms.

Trivia: The floors of buildings are called stories because early European builders used to paint picture stories on
the sides of their houses. Each floor had a different story.

A lot of homes have been spoiled by inferior desecrators.--Frank Lloyd Wright

I bought a two story house. One story before I bought, and another after.

The house is only 5 minutes from shopping . . .if you've got an airplane.

This country is great. It's the only place where you can borrow money for a downpayment, get a 1st and 2nd
mortgage and call yourself a homeowner.

Home is where the mortgage is.

A housewarming is the final call for those who haven't sent a wedding present

The best part of a real estate bargain is the neighbor.

The house was more covered with mortgages than with paint.

Home: A place when you go there they have to take you in.

Charity: A thing that begins at home and usually stays there.

A man's home is his castle. That's how it seems when he pays taxes on it.

Housebroke--What you are after buying a house.

Sign next to FSBO-We shoot every third agent and the 2nd one just left.

This house has every new convenience except low payments.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

They have an all electric home. Everything in it is charged.

My buyers want a new home on the outskirts---of their income, that is.

A Happy Home is a place where each spouse entertains the possibility that the other may be right though neither
believes it.

By the time you pay for a home in the suburbs, it isn't.

A Modern home is a place where a switch controls everything but the kids, and it has gadgets to do everything
except make the payments.

The house has a wall to wall carpet and back to wall payment.

A typical home has a TV set that is adjusted better than the kids.

House problem: The oven is self-cleaning, but the kids aren't.

Our new house has one down payment and 240 darn payments.

Homesickness What you feel every month when the mortgage is due.

http://www.antion.com/humor/speakerhumor/realestate.htm

Open House Idea

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 01:23:43 -0500

I don't know how many of you like to do an open house but I love to meet new people. I have all this top producing agent in office asking me to hold an open house for them and I always say "Yes, why not" But for last couple times I hold an open house and no one show up that is the great sign that eve I market open house everywhere I can no one was there to tour that home.

Now I am spending days of thinking how would I approace people, what I am going to do different so people start showing up for my open house, and idea pop up in my head, who know if is good idea or bad but I gues I will find out. OK, my plan is to make a big sign saying that I am offering a home evaluation on spot for every home owner who come and visit my open house. Every time we hold an open house we are looking for buyers to show up and 99.9% open house is to find a new buyer, but this time I am going to try attract a seller and I think that every one who come for home evalustion of their home is either looking to sell his property in a short time or what ever, but I will be able to meet a new homeowner who will walk out with my card in his hands and my CMA.

May not working but I am going to try.

Short sale properties

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Fri, 14 Mar 2008 00:52:58 -0500

Since I am licensed in both states Oregon and Washington I have a great deal of buyers to move from one state to another. Yesterday I received a phone call from another agent from my Portland office asking me to take a referral for Vancouver, WA, of course I say "Yes" one more in line why not.

While I am talking to my new client on the phone to find out what he is looking to purchase in Vancouver at the same time I was entering requirements in RMLS and believe or not 75 properties that come out in search area under his description (3 bdrm, 2bath, 2 car gar, etc.) 50 properties are short sale properties. I know market in both states and I know that houses sits on the market forever in Vancouver, WA but I was shock to see how many short sale properties a small town as Vancouver has.

No matter how much I love to make a sale no matter how much I love real estate I can't stop thinking about the people who are loosing their homes and I Thank God each day for a least have a roof over my head and not loose that.

Why some agents become agents?

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 13 Mar 2008 02:15:22 -0500

Being in real estate for very short time not even a year I have closed 10 transactions and I think that I made a lot of people happy, but I also working with a several different agents from which someone is very nice and easy to work with and someone was a difficult to cooperate. Just because of all these difficult realtor's I have asked myself over and over same questions, why some agents choose to be a part of real estate world, how they treat their clients, what they clients experience with them,etc.

My last transactions is short sale and many of you know that short sale transactions and bank responses can take forever but if agents don't work together these deals can fail a part very easily. The listing agent that I work with took a two week vacation without assigning someone from their office to take a care of these deals and her other clients if is any. Plus of that this agent don't even took in consideration to inform me nor anybody else about her trip, and after she comes back took her another 4 days to answer her phone and to respond to emails.

My clients was very upset so I contact her principal broker to ask how can I get in touch with her, of course as soon as I contact her principal broker the same day she respond to my emails, but she was very upset about me contacting her principal. My intentions was not to make her upset but I didn't know where to go and what to do at that time.

The question is what would you do? What you think why some people enter real estate world if they are not taking this career serious?

Short Sale seminars

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 13 Mar 2008 01:10:54 -0500

Almost every day I am receiving a phone calls from buyers asking about a foreclosure properties in Oregon or Washington state. Some of these people pay a lot of money to attend some foreclosure seminars where they hear about how to purchase a foreclosure properties for a dime. Currently I am working with guy who attend these seminars and thinks that he knows everything about a foreclosure properties better then anyone else. For last couple weeks we spend searching for short sale properties that are in great conditions and properties with over 4000 sq.ft. in Vancouver, WA. Of course there is not hard to find short sale properties these days but is very hard to explain to my client that he can't purchase a property for 50% less then asking price. Well, since my client don't take a NO for answer I decide to submit an offer of 400.000 on the proeprty with asking price of 745.000. I know that this offer will be rejected as soon as is hits listing agent desk but I want for my client to realize that his foreclosure seminar is just a rip off same as many other quick cash deals in real estate, etc.

As a real estate agent I know there is the deals and great opportunity in foreclosure, REO and short sale properties these days but still bank are not stupid they want their money bank and if seller owe a 616,000 on this property and appraised value of this property is 864.000 and property is on market only a 11 days, why in the world bank will accept an offer like this.

What would you do if you are in my shoes, would you argue with your client or you will respect his wish and submit an offer as I did?

LOCATIONLOCATIONCONDO FOR SALE**ONLY $163,000

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 13 Sep 2007 16:16:48 -0500

GIVE YOURSELF THE GIFT OF TIME IN THIS CHARMING AFFORDABLE CONDO. NO LAWN TO MOW, REPAIRS OR TRIMMING IT'S ALL TAKEN CARE OF FOR YOU. JUST ENJOY YOUR 2 BDRM 1.1 BATH HOME WITH AFFORDABLE MONTHLY PAYMENTS. APPLIANCE STAY ALONG WITH W/D. SELLER TO REPLACE CARPET OF YOUR CHOICE.

LOCATION***LOCATION***LOCATION

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PRICE REDUCTION 55K!!!

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Thu, 13 Sep 2007 16:09:12 -0500

The home you never though you'd find. Lovely to look at, delightful to live in.On a graceful street, you''ll find this stunning 4+ bedroom, 2 bath english tudor home. Reflects the quality of the past with the convenience of the present. Diamond on market. Architectually unique, with bamboo floor, 2FP, leded glass windows, tile floor in kitchen. Full finished basement.

PRICE REDUCTION 55K!!!

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How many times you change company?

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Wed, 12 Sep 2007 20:20:07 -0500

How many times in your career you change companies? I always wondering why? Is that because of commision split, training, people, office cost, etc.? What drive agents in that decision. I start with Century 21 couple month ago and I have seen people in my office who just quit one company and go to another and another without any business or maybe one transaction or so. Why? Did you experience that and what is that drive you to that decision?

Why did interest rates go up?

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Mon, 27 Aug 2007 16:03:33 -0500

Very simple clean cut explanation of interest crisis. I love to read this news letters so you may find something interesting to. http://www.switzer.com.au/sfs_pages/sfs_index.html It was one of the worst kept secrets of all time with, to steal a Keatingism, even the galah at the local pet shop tipping interest rates would rise this month. So what's next? One thing should be certain, that this should be the last rise for this year - no matter what readings inflation cares to spit out in the coming months. This interest rate rise is an 'insurance' hike to ensure that future inflation is contained. What happens to rents? Ironically, it will cause inflation, with higher interest rates forcing landlords to raise rents. Also, less first-home buyers will line up for the mortgage-go-round and that will mean the rental market will have more demand. That too will force up rents and inflation. So what's behind the strategy? The Reserve Bank's tactic is simple - a higher interest rate will slow the economy down because it is growing too fast. More money going to the monthly mortgage will reduce borrowers' ability to go to restaurants, take holidays and buy new clothes. The quarter acre plasma Fortunately for retail businesses, the renters who can't get into a house will spend to keep their spirits up and that's why many will be going to Harvey Norman and JB Hi-Fi. If they can't buy a quarter-acre block, they'll settle on a 'quarter-acre' plasma screen. Brave new world Let's just look at the new interest rate reality before speculating on what this could mean for our lives and our investment strategy. The official cash rate of interest determined by the Reserve Bank is now at 6.5%. It has not been at these levels since November 1996. How much in dollars? This will add some $50 a month to a $300,000 mortgage, but given the fact a lot of people have bigger debts against their homes, the slug could be closer to $100 a month. This is the fourth rise since October 2004, which means many borrowers have seen their repayments go up by as much as $200 to $400 a month. That's not going to cause a recession, but it will be putting the pinch on many families' household budgets. What about petrol? Throw in the fact that petrol prices have gone mad over the past three years and it indicates that the pinch is bound to cause some noticeable bruising. Around late May, the average household was paying $30 more on petrol than they were in January and, as CommSec calculated, it was "the equivalent of a quarter of a per cent increase in interest rates on a $200,000 home loan." Lately prices have improved, with the national average petrol price slipping to 124.5 cents per litre in the week to 5 August. It has been as high as 130.6 cents per litre. More on rents Rents have risen at their fastest rate in 18 years and some experts on the rental market say it is because investors have sold property assets to boost their superannuation, thanks to Treasury's recent changes to super rules. The Australian Bureau of Statistics has shown in its most recent consumer price index that rents rose by 1.6% in the three months to June to record their biggest quarterly jump since September 1989. And the US economy? Well, given the Yanks are more likely to cut interest rates rather than increase them, this interest rate rise will help maintain the Oz dollar's strength against the greenback. Impact on property Without a doubt, the interest rate rise will gradually slow down the enthusiasm of buyers because many borrowers will simply have less money to spend. The recent heat in the property market will be lowered a tad with a lot of people now bound to do their sums on what they can bid at auctions or offer on properties for sale. Why did they do it? Before this rise, the tip was the Oz economy would grow at a rate of 3.75% but this will be pared back, though we should stay in the 3%-plus neighbourhood. This is the Big Bank's assault on enthusiasm and you have to hope it works. If it does, we simply see the economy slow down and we see the property market cool down, but not go off the boil. What about the stock market? This squeeze on our lifestyle coincides with an enormous question mark over our stock market investments. So, what does this mean for our investment strategies? I reckon the stock market locally will not really be affected by this rise, with the US sub-prime debacle being the main game for the moment. Once that is sorted out - and I think it will - the focus for market players will be the strength of the global economy. The international economy is expected to chug along at 4.75% this year and this is better than the 55-year average of 4.1%. CommSec is tipping the All Ordinaries should reach 7000 by June 2008. Correction in the market For my sins I watch very early morning TV from Wall Street and the majority of US commentators are bullish on shares and see the present problems as a bull market correction. On all revealed evidence to date, this is a credible position to hold, which means there are some good buying opportunities out there. This local interest rate rise does not impact on my generally positive market position.

CLINTON AT THE BANK--JOKES

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Mon, 27 Aug 2007 15:46:12 -0500

If President Clinton has had to do it like the rest of us... this is how it SHOULD have gone: Hi, Mrs. and Mrs. Clinton. So, you want to buy the old Rye Brook place? That is 2.2 million and with the customary 20 percent down ($440,000) leaves a mortgage of $1,760,000. Now, let's have a look at your financial statements... Let's see, Mr. Clinton, you are the President of the United States, of course, and your salary is $200,000 a year. We recommend buying a house that costs no more than two and a half times your annual salary. That means you should be looking for something around $500,000... perhaps a nice brick home? I see here that you will be out of a job in 6 months or so. What will you do then? Open a library? In Little Rock, Arkansas? Yes, dawgies.. I bet that will be some kind of moneymaker? Mrs. Clinton, you are running for Senate, right? Senators are paid $130,000 a year , so even with your pension you are still looking at a house in the $825,000 range. Have you considered a nice center hall colonial? Mrs. Clinton, you haven't worked outside the house since 1991? But you did some volunteer work? You tried to overhaul the entire national health care system? I see. But no one was interested? Yes, Ma'am, I have no doubt they all lacked your superior vision. But you do have other experience? That is good. Oh yes, I see you had several business ventures back in Arkansas. Let us see... what about this Whitewater Development Corporation? Oh, I see. It went bankrupt. Well then, how about Madison Guaranty? Bankrupt. And Castle Grande? Bankrupt, too. You actually did go to Yale though. Uh-huh. A little bad luck with the law, too, I see. That is unfortunate. I note that three of your business partners went to jail. This is embarrassing. I know, but we have to ask because it does, after all, affect your ability to pay. Now, any problems in your marriage? No? Oh, good. Let's look at your assets: You owe $4.5 million. Mr. Clinton, how do you plan to pay that off? Oh! You are hoping people will donate to a special fun. So basically you're relying on the kindness of strangers to bail you out? How nice. You also have some serious expenses at present. A kind at Stanford has got to be setting your back $30,000 to $35,000 a year - probably more with airfares. And she wants to go to medical school? Rack up some major bucks. Any legal problems? Oh, dear. I see a $90,000 fine for perjury, along with possible disbarment. I guess that pretty much rules out any income in the future working as an attorney, doesn't it? Sir, are there any other legal matte we should know about Mrs. Clinton? You do no think she is going to get hit with a perjury of obstruction of justice rap. But you are not totally sure? Interesting. That mean there's a remote possibility - note that I say "remote" - that you could be trying to pay off a $1.76 million mortgage while making 12 cents an hour stitching mailbags for the fed and while Mr. Clinton is trying to make a go of a library in Little Rock. Hmmmmm.. (This is probably why he want to raise the minimum wage.) By the way, I have to ask, How do we know you are not lying on your loan application? (Of course, if you WERE lying, I guess it would look a lot better. We will keep that in mind.) Okay, let us review the situation: One of you in now unemployed and the other one soon will be. Your business partners are in jail. You have debts equivalent to over 22 times your annual income (that you are hoping someone is going to come along and pay) and looming criminal indictments. And your tangible assets seem to consist of an old Ford... Thanks. We will be in touch. THE BANK.

HAPPY MONDAY--WITH MORE JOKES

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Mon, 27 Aug 2007 15:42:30 -0500

ASK FOR RAISE "I have to have a raise in my commission," the agent said to his manager. "There are three other companies after me." "Is that so?" asked the manager. "What other companies are after you?" "The electric company, the telephone company, and the gas company." Commission Check An agent who was being paid by the week approached his office manager and held up his last paycheck. 'This is two hundred dollars less than we agreed on,' he said. 'I know,' the manager said. 'But last week I overpaid you two hundred dollars, and you never complained.' 'Well, I don't mind an occasional mistake,' the agent answered, 'but when it gets to be a habit, I feel I have to call it to your attention.' Crusty Old Man A crusty old man walks into a real estate office and says to an female agent, "I want to sell my god damn house." To which the astonished female agent replies, "I beg your pardon, sir; I must have misunderstood you. What did you say?" "Listen up, damn it. I said I want to sell my fucking house!" "I'm very sorry sir, but we do not tolerate that kind of language in this office." So saying, the agent goes over to the officer broker to tell him about her situation. They both return and the broker asks the old geezer, "What seems to be the problem here?" "There's no damn problem," the man says, "I want to sell my fucking million dollar home." "I see," says the manager, "and this bitch is giving you a hard time?"

SOME REAL ESTATE JOKES

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Mon, 27 Aug 2007 15:29:13 -0500

Reference http://www.antion.com/humor/speakerhumor/realestate.htm

Nissan Hybrid Still Qualifies for Tax Credit

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Mon, 27 Aug 2007 15:20:20 -0500

According to IRS News if you drive a Nissan Hybrid you still qualify for Tax Credit. IR-2007-147, August 23, 2007 WASHINGTON — The Internal Revenue Service announced that purchasers of qualified Nissan North America Inc. vehicles may continue to claim the Alternative Motor Vehicle Credit. The announcement comes after the IRS concluded its quarterly review of the number of hybrid vehicles sold. Nissan sold 3,128 qualifying vehicles to retail dealers in the quarter ending June 30, 2007. This brings the total number of qualified hybrid vehicles sold to 5,222. The allowable credit amount for the 2007 Altima Hybrid — Nissan’s only certified hybrid vehicle — is $2,350. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter. News Resources: http://www.irs.gov/newsroom/article/0,,id=173357,00.html Share with others

Riskiest U.S. Housing Markets

MIRJANA FILIPOVIC (CENTURY 21 Hart & Expert Realty) — Tue, 31 Jul 2007 12:40:26 -0500

This is the great article in Forbes regarding a housing market. I love to share with all of you.

Riskiest U.S. Housing Markets

By Matt Woolsey, Forbes.com

July 17, 2007

http://promo.realestate.yahoo.com/riskiest_us_housing_markets.html

Those looking to spin the real estate roulette wheel might want to steer clear of Miami. It ranks first on our list of the nation's riskiest real estate markets.

There, a high share of adjustable-rate mortgages, high vacancy rates and slumping prices still too elevated for the local populous means should long-term bond yields climb, interest rates jump or the housing crisis linger much longer, things could go from bad to worse.

Affairs are not much better farther north--or west. Following in Miami's wake are Orlando, Sacramento and San Francisco.

Our ranking of the country's riskiest markets measures which of the 40 largest metros are most vulnerable to future shocks. We've done this by assessing which have the most strained lending conditions, and which markets are the most overvalued and likely to face downward price pressures.

Many of the cities on our list--like San Francisco and San Diego--are traditional high fliers where speculators can still make a lot of money if they pick the right neighborhood or hit the price trough. Of course, they might also take a serious bath. Others, like Chicago or Phoenix, are generally stable markets that are currently under significant strains. Finally, some, like Cincinnati or Kansas City, are precariously teetering and are not well equipped to handle further downturn.

Crunching The Numbers

A good place to start in assessing risk is the state of the local mortgage market.

Take adjustable-rate mortgages, or ARMs, in which borrowers, for a limited time, usually five or seven years, make interest-only or reduced-rate payments. The most obvious danger in this is that at the end of the five- or seven-year term, monthly payments increase to a rate the borrower is unable to sustain. Given Federal Reserve chairman Ben Bernanke's continuing worries about inflation, economists say there's a good chance rates could go up in the next couple of years, meaning that the increased costs of lending will be passed along to ARM borrowers, and that can mean higher rates of defaults.

What's more, high ARM share generally means a market is unaffordable to its residents.

The metros with the highest shares of ARMs, according to the National Association of Realtors, are in San Francisco, San Diego and Los Angeles, respectively. These three cities are also the most overpriced, according to our price-to-earnings measure. And these areas are three of the four least affordable to the local population, according to the National Association of Home Builders and Wells Fargo's affordability index. If rates go up or lending tightens, fewer will be able to buy in, bringing the markets to a screeching halt.

Another arbiter of risk? Cities with a high proportion of mortgages with loan-to-value ratios in excess of 90%. Loan-to-value (LTV) measures the size of the mortgage to a home's overall value. In a standard home buy, the down payment is 10% of the overall value, meaning the LTV is 90%.

When the loan-to-value ratio is above 90%, it means buyers have little equity in their homes. And homeowners with low equity are far more likely to default or walk away from a mortgage. If the market teeters and lenders take a hit from defaults, it can depress prices overall, as is currently being seen with the subprime lending fallout. For that reason, Kansas City is particularly vulnerable. It has a 39% share of mortgages with LTV ratios above 90%. The median rate for cities on our list was 11%, according to the National Association of Realtors.

We next mixed in a price-to-earnings ratio for each market. (Like the P/E of a stock, this value attempts to measure the price a homeowner would pay for one dollar of return.) Using data from the National Association of Realtors, the U.S. Census Bureau and the Office of Federal Housing Enterprise Oversight, we took each market's median home price and divided it by annual rents minus taxes and insurance for those properties.

The price-to-earnings ratio highlights two significant risks. It magnifies risk factors in overly expensive markets in which there is more money at stake. For example, a 5% drop in median home prices in San Francisco is possible; but the nominal equivalent, a 24% price drop in Dallas, is not something the market is likely to bear. Second, overvalued bubble markets are more likely to face downward price pressures in a slumping market as overvalued markets are, by definition, most likely to experience a correction.

A final factor was vacancy rates. It's not a complicated or glamorous measurement, but it's difficult to find a better indicator of supply and demand. Orlando's staggering 5.2% vacancy rate represents a significant risk factor for the city. Strong local economic indicators like job growth and immigration significantly mitigate that risk, but it is in a vulnerable position should there be an economic slowdown or a disruptive hurricane season.

Two larger cities that performed very well by this measure were Los Angeles and New York, which ranked fourth and eighth for lowest vacancy rate. While both cities had high ARM shares and high P/Es, their low vacancy rates bode well for those markets.

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