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Real Estate is STILL the BEST INVESTMENT to Make

by The Barringer Team

You still cannot beat investing in Real estate. Ever since I was a child growing up I have seen and Heard people say they are not making more land so you cannot go wrong investing in real estate long term. What other investment does the Government offer tax incentives to invest in real estate. Click on this article written in Realty Times.

http://realtytimes.com/rtcpages/20071112_longterminvest.htm

Mortgage Fraud

by The Barringer Team

I wanted to share with you an article that the local paper interviewed me on. The topic was mortgage fraud. I have been in this business for 21 years and have seen it all. I just want you the consumer to know there are allot of Dishonest people in this Business and you have to be careful. We treat all of our Clients like FAMILY and look out for your Best interests like we would our own. Click here to read local article in the Tracy press.

http://tracypress.com/content/view/12063/2242/

Bill Barringer

Real Estate Broker

Tracy Area Market Report 10/30/07

by The Barringer Team

ACTIVE Status:
Total # of Residential properties for sale in the city of Tracy: 918 (920)
Average # of days on market: 81 (77).

The Median price of all Homes for sale in Tracy: $439,444 ($449,990)
The Average price of all Homes for sale in Tracy: $472,203 ($482,886)

PENDING Status:
Number of properties currently under agreement: 75 (66)
Average pending price: $408,775 ($422,579)

Avr. pending home is 4bd, 2.5ba, 2093 sq.ft at a price of and 74 days on the market and 73 days on market.)

SOLD Status:
Residential property sold over previous 30 days: 35 transactions or $14,881,199
in sales. (30 transactions, $13,184,594)

Average sale price: $425,177
Median sale price: $419,900

High: 749K (5/4bd 3485 sq.ft home).
Low: 220K (1122 sq.ft home)

Summery:
The market is slow but there is a steady pick up in sales. Housing inventory is staying about the same, in the low 900s. There is a steady increase in the amount of homes sold. Another interesting point is the number of pending homes (75). This is an indication that we should see a increase in the number of homes sold next month. There are more sales as homes become more affordable. Another indication of a market pick-up is that vacant properties in Tracy are down to 383.

Below are links to previous Tracy Area Market Reports:

2/14/08 vs. 1/11/08 http://tracyrealestateexpert.com/blog_post.asp?post=8226

10/30/07 http://tracyrealestateexpert.com/blog_post.asp?post=5779

2/2/09 vs 1/2/09 http://www.tracyrealestateexpert.com/Blog/Tracy-Area-Market-Report-2209-vs-1209

1/2/09 vs. 12/1/08 http://tracyrealestateexpert.com/blog_post.asp?post=20478

12/1/08 vs. 11/3/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=19465

11/3/08 vs. 10/1/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=18625

10/1/08 vs. 9/2/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=17634

9/2/08 vs. 8/1/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=16678

8/1/08 vs. 7/9/08 http://www.tracyrealestateexpert.com/blog_post.asp?post=15614

 4/4/08 vs. 3/4/08 http://tracyrealestateexpert.com/blog_post.asp?post=9503

3/14/08 vs. 2/14/08 http://tracyrealestateexpert.com/blog_post.asp?post=8914

3/14/08 vs. 2/14/08 http://tracyrealestateexpert.com/blog_post.asp?post=8913

2/14/08 vs. 1/11/08 http://tracyrealestateexpert.com/blog_post.asp?post=8227 

Time to Get off the Fence

by The Barringer Team

Donald Trump Recently was interviewed on CNBC and says NOW IS THE TIME TO BUY! Click here to see interview.

http://www.cnbc.com/id/15840232?video=561989966

What is The 1031 Tax Exchange?

by The Barringer Team
Q        What is a tax-deferred exchange?   A        Tax-deferred exchanges are permitted under §1031 of the Internal Revenue Code. These exchanges are used by people want to defer payment of capital gain taxes when selling and buying investment properties and business properties. Exchange properties may be single family rentals, bare land, commercial, etc. Tax-deferred exchanges are also called “tax free exchanges,” “like-kind exchanges,” and “Starkers.”    Q        How would an exchange benefit me?   A        When you sell an investment or business property you owe tax on any capital gain in the property. On a gain of $30,000 this can mean a tax bill of as much as $10,000, between federal and state capital gain taxes. If you exchange the property, instead of selling, you don’t have to pay the taxes. Exchanges are a great tool for investors who are trying to grow wealth. You get to keep the $10,000 and use this to leverage into a larger replacement property.              Because this is only a tax-deferral technique, if at some point in the future you sell the replacement property (without doing another exchange) the tax will come due at that time.   Q        How does an exchange work?   A        Most exchanges are simply the sale of a “relinquished” property and the purchase of a “replacement” property. Taxpayers need to work with an “accommodator” that will prepare some special paperwork for the sale and the purchase. In Oregon most accommodators are corporations affiliated with title insurance companies. It is the accommodator’s paperwork that creates the exchange. The accommodator is also required to control and hold the cash from the sale.   Q        Are there any other requirements?   A        Yes. First, you only have 180 days to complete the sale and purchase. This is called the “exchange period.”               Second, there is a requirement that the replacement property be carefully identified within the first 45 days of the exchange period.               Third, to get a complete deferral of capital gain taxes there are some reinvestment rules. Simply put, it is cash for cash, debt for debt. All cash from the sale must be applied toward the purchase. And if there was a mortgage on the relinquished property then you need a new mortgage of equal, or greater, amount on the replacement property.      Q        What if my cash for cash, debt for debt adds up to $165,000 but I only buy for $155,000?   A        Assuming there is $30,000 of gain in the relinquished property, you have a tax bill on $10,000 that was not reinvested. You still get a deferral on $20,000 of gain. This is called a partial exchange.   There are also restrictions about how the money from the sale can be spent and when any excess exchange funds can be returned to you. If you are unable to purchase a replacement property the accommodator may be required to hold your money until after the end of the 180-day exchange period.   Q        What happens if I can’t identify a property within 45 days?   A        The exchange fails, the cash held by the accommodator must be returned to you after the 45th day and you have to pay capital gain tax.   Q        What if I can’t purchase within the 180 days?   A        The exchange fails, the cash held by the accommodator must be returned to you (after the 180th day) and you have to pay the capital gain tax. These deadlines are very rigid and can only be extended in the event of a presidentially-declared emergency.   Q        I have a little rental house. Can I exchange it for a second home?   A        Although we all believe second homes are an important “investment,” personal-use property does not qualify for exchange treatment. However, with patience this could work. You might sell the rental house and buy a rental house in an area where you would eventually like to have a second home. After renting the new house for a period of time (consult with your tax advisor) you could begin to use the home personally. Better yet, if you end up retiring into the property it may qualify for mostly tax-free treatment as a personal residence.   Q        I am tired of my three rental houses. Can I exchange them for a nearby commercial property?   A        Yes. You can exchange residential properties for commercial, or any other real property that you intend to hold for investment or business. Although these are called “like-kind” exchanges, all real property is “like-kind” with all other real property, even when the exchange is improved property for unimproved property. What is important is that both be held for investment or business purposes.   Q        I am tired of my three rental houses and I don’t want any other property. I just want out! What about buying into a Real Estate Investment Trust (REIT)?   A        Unfortunately, because you are selling real estate you must buy real estate. Buying into a REIT is buying stock and is not considered to be an interest in real estate.              An option for you might be purchasing a piece of a Tenancy-in-Common property (TIC’s). There are companies that market TIC interests, typically office and retail properties. As a smaller investor you may be able to sell your rental houses and buy a percentage interest in one of these properties. You still get an interest in real estate (as required for the exchange) but no longer have to deal with property management.   Q        I am having trouble selling my rental house but there is a condo in Hawaii that I want to buy. Can I buy it before I sell the rental and still qualify for an exchange?   A        Buying before you sell is called a “reverse” exchange. While the IRS issued rules for reverse exchanges in 2000 these exchanges are far more complicated than a “forward” exchange. Among other things, you are not permitted to own both properties at the same time. Therefore, you have to “park” one of the properties with an accommodator. Plan to spend some significant time consulting with the accommodator company and your legal and tax advisors to arrange the reverse exchange. The accommodator’s fee for the reverse exchange will be higher than their fee for a forward exchange. You will have other additional expenses – recording fees, closing fees, perhaps higher loan fees, etc.    Q        Is there anything else I should be aware of?   A        There are a number of technical rules that apply to exchanges. And there are special challenges in exchanges: related parties, new construction, dissolving partnerships, to name a few. Before deciding to do an exchange you should talk to your tax advisor and a knowledgeable accommodator company to review these numerous rules and make sure the exchange will be beneficial to you.

Lease options are Back Be Careful

by The Barringer Team
When real estate markets slow down, and especially when mortgage financing becomes difficult to obtain, many buyers and sellers turn to lease options as a way to achieve their short-term real estate goals, while waiting for situations to become more conducive to engaging in a straightforward purchase or sale. In its simplest form, a lease option occurs when a tenant has an option to purchase property that he is occupying or using according to the terms of a lease. Lease options may offer advantages for both parties. Buyer-tenants may be able to occupy a property that they would like to purchase, but currently don't have sufficient down payment and/or borrowing ability. Seller-landlords are given a way to have their costs of owning the property covered, allowing them to move on somewhere else, and they usually get good tenants who are motivated to keep up the property and to remain current with the payments. There are lots of things for both parties to think about when entering into a lease option. First and foremost is the fact that they are committing to three distinct, though related, transactions: a lease, an option to purchase, and a sale agreement. These three different agreements might be spelled out in three separate documents, with cross-references, or in one fairly complex one. The lease part would typically be fairly standard. Certainly, it ought to have the normal provisions for a security deposit and late fees (items that are liable to be overlooked when everyone is happy, and thinking that there eventually will be a purchase). Each party should have the normal rights and protections that accompany a regular lease. The lease term may be the same as the option period, but it need not be. One might, for example, have a three-year lease, but only a two year option period. That way, should the option not be exercised, the landlord would be able to market the property while he or she still had a tenant in it. The option agreement will spell out how much is being paid for the option, which is usually not refundable if the option is not exercised. It will specify the length of time the option period lasts, the manner in which the option is to be exercised (usually some form of written notice), and, also, the consequences of non-exercise. The big item, of course, is the price. This might be specified in the option agreement, or, better, it could be designated in a purchase agreement that is referenced by the option agreement. "A purchase agreement?" some might wonder. "Why should there be a purchase agreement?" Specifying the price alone is just not enough. Suppose you give me an option to buy your property for $500,000, and that, later, I say, "Okay, I want to exercise the option. I'll give you $5,000 down, and I'll pay you $5,000 a year until it's paid off." Well, of course that won't work for you. But that's why you want not just the price, but also, the terms, spelled out in a purchase agreement at the time you give the option. Note, though, that it is not necessary for a specific price be agreed upon at the outset, as long as there will be a clear method for determining the price, e.g. by referencing the consumer price index, or some real estate valuation method. An option to purchase is or can be an enforceable document. But if its terms are too vague or ambiguous, it can't be enforced. Both parties should want a purchase agreement to accompany the option document. Any credits that are to be given to the buyer towards down payment can also be spelled out in the purchase agreement. Typically, though not necessarily, the option money and all or part of the rent may be credited towards down payment. Among the other things to think about: It is a very good idea to record the option agreement, or a memorandum thereof. This protects the potential buyer. All should recognize that a lender may not "allow" all the money that the seller is willing to credit towards the buyer's down payment. State law will determine whether disclosure requirements are triggered at the outset, rather than at purchase time. Finally, both parties should be aware that many mortgages provide for acceleration of the note (calling it due) if a lease option occurs.

Your own Home!

by The Barringer Team

UNDERSTANDING THE ADVANTAGES OF HOME OWNERSHIP

Every situation is different, but some of the following items are worth considering when deciding whether to buy or rent: You can buy, and enjoy a great tax write-off, OR you can rent and get no tax write-off.

When you own a home, your housing expense might never go up. When you rent, your living costs can go up each year. When you own your home, you can use, decorate, make physical changes and enjoy your home as you see fit. When you rent, you must get permission to make changes. As a homeowner, you build equity, if your home appreciates in value. As a renter, you build no equity. The money you spent on rent is gone for good.

As a homeowner, you are not at the mercy of your landlord. As a renter, you can be evicted. The house you own will become a home, the place where memories are made. As a renter, your living situation is always temporary. You may already have realized the American Dream - and the true freedom and feeling of accomplishment that goes with it. Or, you may still be seeking the American Dream.

It’s more easily attained than you think. Find out how easy it really can be when you have professional guidance.

Thank You,   The Barringer Team

self appointed expert Cramer on real estate

by The Barringer Team

Cramer the guy on the cnbc came out today and told people on national T.V. DON'T BUY A HOUSE you will lose money.

Watch the video here.......

My Opinion:

This guy is too much he is a self appointed Know it all and now he is a real estate expert. I do agree with him on investing in real estate right now but for someone who is renting I would say how can you afford not to buy? 

You  should buy a home to live in it should not be a  vehicle to Rich's. It should be looked at as a tool like cars, Tools, ect... Everyone needs a house to live in. Things that you need in life. Buyers should stop and think for a moment. 

Advantages of owning a home

1. Tax write off

2. Peace of mind

3. No one can tell you to move

4. Do any improvement you want with out permission from any one.

5. Pride of ownership. 

If the home happens to go up in VALUE Consider that GRAVY. This is what our parents did. Too many people have counted on there home to be a ATM. If you are RENTING take advantage of the buyers market and low rates. I personally know that it is BETTER TO lead a trail, not FOLLOW one.

Also the BEST Decisions I have Made have been the most Scary. No one knows when the bottom is and when you know its going back up it will be too late.  

I have been doing this allot of years and I do not even know when the market hits bottom until its already going back up.

Bill

 

Where will the wheel stop?

by The Barringer Team

WHERE WILL THE WHEEL STOP?

TIMING THE HOUSEING MARKET IS A GAME OF CHANCE

 

The season is here. Or is it? The roads and restaurants may be crowded, but will consumers be in a homebuying mood? Will they give our residential market the jump-start that is so desperately needed?

Sellers are optimistic that they will. They make a strong case by stating factors that support their position, including attractive interest rates, positive economic news, and a smorgasbord of choices for the buyer. Let’s examine each of these factors a little further.

Attractive interest rates. Long-term interest raters are near a 12-month low and by historical standards are still very attractive. Other economic indicators such as unemployment and consumer confidence suggest a bullish economy. But we had these conditions last year. In fact, most of the leading economic indicators have been at record levels for the last several years, yet we find ourselves in a falling residential market. Therefore, this won’t be the battery that starts this market.

Buyers’ smorgasbord. In my 21 years of selling homes, I have never seen such a supply of homes and condominiums for sale. Imagine that our residential market is a bathtub and the water in it represents the homes for sale. If we opened the drain and didn’t put another drop of water in, it would take almost two years to empty. In reality, there is still more water coming in than going out, which suggests an improving buyers’ market. This should be the signal for buyers to start their engines. Unfortunately, I believe too many buyers will miss this great opportunity because they will wait one day too long. Or put another way: They will spin the wheel one too many times. Think of it as playing "Wheel of Fortune". The contestant can solve the puzzle but wants to keep spinning in order to accumulate more money. This makes sense: however, there is risk with each spin because the wheel can stop at Bankrupt. Some will quit spinning as soon as they know the answer; others will get greedy and end up with nothing.

I hope that buyers will recognize how much they have won rather than how much they might be leaving on the table. But if history repeats itself, they will wait too long. I know this because it was just over a year ago when the sellers were spinning the wheel. They had a four to five year run, and they were ecstatic as they watched their home values increase beyond their wildest expectations. Although there were plenty of warning signs that they should sell before it was too late, they didn’t. Buyers should learn from this. The question is, will they?

Real estate values have dropped an average of 20 percent from their peak. The oversupply suggests that sellers are in the mood to consider offers and contingencies that they would have laughed at last year. Buyers are winning; and might I add, it’s about time. But like the sellers, there will be a limit to how much the market will fall. In addition, unlike the seller’s situation, there will not be any warning as to when the market will change. Therefore, buyers should be warned!

We are currently selling property at the same pace we did in 2002 and 2003. However, our population is greater and there are people moving here every day. This suggests a back log of buyers developing. Most are sitting on the fence, waiting for the most opportune time to buy. When this pent-up demand is released, it will immediately shift the market from a strong buyers’ market toward a natural one. Sellers will become less flexible as they sense better days just around the corner. The fence-sitting buyers will not want to completely miss out on the buyers’ market and will want to step in before it’s too late. Good deals will still be there, but the market will have already bottomed and will be heading back up.

Everyone wants to know when this shift will occur. But even if we knew the exact time and day, what good would that do for the majority of the buyers? The fact that nobody knows when the market will reach bottom is a plus for buyers. Fear accompanies the unknown, and if sellers fear that tomorrow will be worse, they will be more flexible. The buyers’ leverage would be eliminated if the sellers had an idea of when better days were coming. So if you happen to know the exact date, be sure to keep it to yourself!

Each day brings a new spin of the wheel. Buyers have tens of thousands of dollars in winnings and were lucky again today. How many more days will they test fate? In the game show, there is only one winner, and there are two losers. Likewise, I believe about a third of the buyers will cash in and the other two thirds will wait a day too long. Which one will you be?

 

 

Bill Barringer

Displaying blog entries 511-519 of 519

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The Barringer Team
Century 21 M&M and Associates
912 W 11th Street
Tracy CA 95376
209-833-7777
800-984-7282
Fax: 209-229-7426
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