Read on … July 2010

Politics and real estate

Good news

Financial reform bill is here! The House of Representatives Democrats agreed on the proposal to put a new Consumer Protection Agency inside the Fed, setting up a powerful stand-alone agency.
Legislation consolidates consumer-related duties now dispersed over some agencies like mortgage, credit cards and other financial products into this new agency. This legislation will be the biggest Consumer Protection modification since the 1930´s.

Bad news

• One of the key rules requires lender to assume 5% risk of loss when originating a loan. This is intended to reduce risk of “toxic” loans. Unfortunately lender could cover this small risk by other fees and still make a “toxic” loan. If lender would be required to assume significant portion of a risk – like 50% - he would only make “good” loans (it works in some European countries). Too bad that our legislators luck “guts”
• Many members of Congress ruled out a value-added tax - in effect, a national sales tax – but, but - the VAT may be something that we will soon hear proposed as a solution to the continuing federal budget deficit.

Tucson real estate Overview

For similar write-ups go to archives.

This month we will compare location, in Tucson area, of low cost properties - $120,000 or less and luxury properties $760,000 and more.
For purpose of this review low cost properties consist of single family residences (SFR), minimum 2 bedrooms, minimum 1 bath, at lest 1 parking space, built since 1960; Luxury properties are single family residences (SFR) and are listed at $760,000 and higher.

# = number of properties on the market; DOM = days on the market; Tucson Association of Realtors “divides” metro area geographically.

Conclusion: Largest concentration of luxury properties is in the North, Northwest and Northeast. Largest concentration of inexpensive properties is in South and Southwest.

For more information on available homes in Tucson area scroll down to icons on the bottom and click on “Homes - ready to move in”.

Tucson at its’ best…

• Tucson-based Raytheon Missile Systems will develop an airborne launcher designed to fire radio frequency-guided TOW anti-tank missiles, the company said in an announcement at the Euro trade show in Paris. Also the U.S. Navy has awarded Tucson-based Raytheon Missile Systems contracts totaling $368 million to ramp up production of its newest ship-defense missile.
• Deciding where to go for dinner isn’t as easy as it used to be in Oro Valley (considered part of Tucson). A half-dozen or so new eateries recently opened in the town or are expected to do so over the next few months. The restaurant boom follows years of heavy growth in the municipality, which has morphed from a Mecca for senior citizens into a haven for higher-income families.
• Cinema La Placita is a downtown outdoor movie event every Thursday night from May – October. They suggest a $3 donation per person. Cinema La Placita is located at 110 S. Church Ave.

Did you know ?

• Mortgage rates have sunk to levels not seen in more than a half-century - 4.58% for an average 30-year fixed loan. But most potential buyers cannot qualify for loans – not good enough credit rating or unable to make required minimum down payment or already recently re-financed so cost of re-financing again may be too great.
• Optimists are confident that today’s near historic low interest rates will continue to encourage homebuyers back into the market. Combined with lower home prices and more homes for sale in many areas, this could be one of the best times to buy in decades, if you can find the right home that will suit your long-range needs and you qualify for the financing you need to complete the purchase.
• Zandi sees foreclosures rising in 2010 before declining in 2011. If you buy now, home prices could decrease some before increasing. If you wait, interest rates could be higher (it is difficult to win!).
• Per Harvard University’s Joint Center for Housing Studies, an estimated one in seven homeowners has a home worth less than they owe on their mortgage, and 5 million need their home price to rebound by 25% before they’re again “above water”.

If you are in trouble with your mortgage payments or you think that you may have difficulties in the future, scroll way down and click on icon “YOU?” - You will get some useful suggestions.

Thinking on refinancing? Some useful information below in icon YOU?

For Dreamers, poets and lovers…

• Want a small house? Click here
• Need a place for your horses? How about indoor riding arena? Click here!
• Like to go shopping? Go – click here

Saying of the Month

Some people succeed because they are destined to, but most people succeed because they are determined to!

Smile

(for more Smiles go to Archives)

Be nice to your kids. They’ll choose your nursing home.
Everyone has a photographic memory. Some just don’t have film.
Experience is what you get when you didn’t get what you wanted.
Get a new car for your spouse; it’ll be a great trade!

….see you in August!!!

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Also, you can “see” me on http://geoszk.posterous.com/
and on http://www.trulia.com/blog/george_szkup