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Saturday, November 3, 2007

Real Estate Market Research

Start your real estate market research with the U.S. Census information about a town. You want to invest in a town that is growing, especially if you are investing in income properties. It's getting easier to do this now, with all the information available online. Just go to the official U.S. Census site at www.census.gov.

If you call the chamber of commerce, or the local department of economic development, they may have a packet of statisics they can send you too, showing population figures, employment mix, and more. These are a couple of the statistical tools and information that can help, but one of the easiest and most useful research tools, is talking.

Real Estate Market Research - Choosing a City

Talking is a great way to research a town. I once called the Chamber of Commerce of Deming, New Mexico. In the course of our conversation, the chairman casually commented that the city was using up the water faster than the aquifer was being replenished. I also learned that they had no back-up plan. That was enough to cross Deming off our list.

When you want to know more about a town, use the phone. Use any excuse to call anyone from a real estate agent to a random resident. Ask questions about crime, whether the local government welcomes new businesses, what the climate is like. Are houses sitting for sale for a long time, or do they go fast? Where are the good and bad areas? What are the good and bad things about the town?

Prior to moving to Tucson, Arizona, part of our real estate market research was to call people in potential towns to see if they owned a snow shovel. If they did, we crossed the town off the list. Two different places can both get 25 inches of snow per year, but in one it stays all winter, and in another it melts before noon. Our snow shovel question told us the truth behind the statistics.

That was just a personal thing with us, of course, but talking to people can tell you much that is more directly related to investing. In fact, a good local bar can be a great place to do your research once you are in a town. Patrons will tell you what big employers are about to move in or out of the town, how fast homes are selling, whether there are gangs, and much more.

Ask which areas are improving, and which are getting worse. Listen for stories about noisy or animal-infested areas. This kind of information is important, but hard to get from the raw data. Of course, people do sometimes exaggerate, so try to verify what you hear. Still, talking to people of can be a great way to do real estate market research.

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Kids Are Professional Athletes - The Curse of Athleticism or the Big-League Myth

How much is too much?

For youth sports, the answer is apparently nothing. An average professional hockey, basketball, or soccer player might have 80 games a year. Eight- or nine-year old kids often play the same, along with practices and weekend tournaments.

So whats going on?

Whats going on is that adults are ruining sports from kids. Weve professionalized youth sports, organized the games kids used to play in the schoolyard or in parks. Instead of that endless and unstructured fun, parents drive their kids to games and practices, where coaches tell kids what to do and how to do it. This goes on five, six, even seven times a week. Sure, a precious few go on to superstardom as professional athletes, but theyre the one percent of the one percent. The rest burn out.

Is it really necessary to travel every weekend to yet another tournament? Is that third practice a week really adding to a young persons enjoyment? Has society forgotten about the Law of Diminishing Returns? Is there not something wrong about $30,000 budgets for a hockey team of 12-year olds?

More is not necessarily better. The magic number is three - one game and two practices a week. Until a kid is 13 or 14, that is enough of any one activity. Let them develop a number of interests - sports, reading, music, and maybe hanging out with friends once in a while. After that age, if the interest is still there, then it might be appropriate to let them focus on one sport or activity. Two- and three-sport athletes are going the way of the Dodo bird. We do no lack for great athletes, but we force our kids to specialize at an early age. Cross training is widely accepted by experts as an essentially part of an athletes development. Yet, I do not see many kids cross training at all.

Naturally, if any of my kids were a Michael Jordan or a Tiger Woods I would encourage them to focus. Unless yours belongs to that elite class, however, perhaps your kid would be better off playing a number of sports; and make sure they have time to play after school, without coaches and referees blowing whistles all the time.

There is also a worrying commercial side to this issue. Leagues and tournaments have become a big business, along with equipment sales and sports facilities. Ironically, all this money depends upon a constant stream of kids who play a whole lot of sports. The more they play, the more money is made. I find it hard to ignore this connection; and, also not to believe that business has been an active partner in fueling the belief so prevalent among parents and coaches that kids have to play their sport every day of the week.

We need to remember that youth sports are for kids - not for those watching from the sidelines, or tournament organizers, or equipment manufacturers. Professional athletes are paid millions to play 80 games a year; how much are our kids getting for becoming professional athletes at 8-years old?

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Buying your First Home in Mission Viejo

Buying your first Home in Mission Viejo will most likely be a stressful event if your like most people. How much can you afford? Where is the best neighborhood to Buy in? How much do I need for a down payment? A monthly mortgage obligation for the next 30 years... Yikes!!! But having bought and sold many homes of mine own, and helping hundreds and hundreds of home owners purchase their first home, I can attest to you that is well worth the initial stress.

Mission Viejo has a wide range of housing designed for the first time home owner. There are currently 82 attached Condos and Townhomes for sale in Mission Viejo ranging in price from $319,900 for a 1 bedroom, 1bath on up to $679K for an attached Townhome with 3 bedrooms, 2.5 baths, 2 car garage, 2,200 SqFt of living area, and a nice sized back yard.

If one prefers detached homes, there are 111 homes for sale in Mission Viejo ranging in price from $519,900 to $1,899,000. The lowest priced detached home is a 2 bedroom, 2.5 bath home with a two car garage, and the highest priced estate comes with 4 bedrooms, 4.5 baths, and 3,800 SqFt of living area.

There are many loan programs available today in Mission Viejo that are designed for first time home buyers that did not exist just 7 years ago. There are loan programs offering no down payment of very low down payment of 3% to 5%. There are other loan programs geared for the self-employed in which you do not have to verify your income (so called stated income) if you have sufficiently good credit. In other situations it can be negotiated to have the home seller pay for your closing costs. While other loans exist offering adjustable rate mortgages, interest only mortgages and now a new 40 year amortized mortgage... all developed to help keep the monthly payments down.

If your like most people in this state, the home that you own and live in will be your best and most valuable investment in your life. Coastal Orange County real estate has enjoyed great price appreciation for many decades now, and estimates are that will continue for decades to come. Plus the tax advantages for owning real estate are unbeatable. You can deduct your interest payments on your residence, or save capital gains tax using a 1031 exchange for rental property, plus the tax free treatment of up to $500K of equity when you sell your residence, makes real estate ownership a fantastic investment and great tax shelter.

There are also new computer technologies available today that greatly assist the new home buyer in searching for and identifying the perfect home. These new home finding technologies bring peace of mind and convenience to today's busy home seeker. Plus acquiring the services of an professional Realtor who has lots of experience in working with first time home buyers will help greatly in making this an enjoyable process, rather then a frustrating one.

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