Aerosmith Drummer and founding member Joey Kramer has sold his coastal compound. The property sold for $2.7 million, 27% less than the property’s most recent asking price and almost half of the original $5 million asking price when it first went on the market in July of 2008.
The property over looks the Atlantic and is rested on 17 acres. It includes a 6,200 square foot home, a recording studio, a carriage home, as well as 3 garages.
Earlier today House Speaker Robert A. DeLeo outlined his plan to introduce a bill allowing two resort style casinos as well as limited slot machines at race tracks in Massachusetts. This is similar, but at least not yet quite as heated, debate that is happening currently in the South. Alabama is trying to legalize electronic bingo and casinos to hopefully recoup some of the money lost to neighboring lottery and casino friendly states.
Proponents of legalized gambling cite loss of income to neighboring states, job creation, and a way to finance better school system through taxation of these cash cows.
Those who are against legalized gambling mostly refer to the moral reasons for keeping casinos out as well as how casinos can tempt low income residents to spend the little money they have in a way that many consider irresponsible.
The Boston Globe has reported on Deleo’s bid to legalize slot machines and casinos. The Globe also mentions Governor Patrick’s lack of a stance as he is up for reelection and many of his supporters oppose the idea of legalized gambling.
What do you think? Can legalized gambling help with the aptly dubbed “blue collar depression”? Are the moral sacrifices worth the potential job creation and greatly increased revenue to the state? Let us know!
With mortgage rates near a 50 year low why are there not more borrowers taking advantage of the low rates and refinancing? With many borrowers able to drop their rate by a full percentage point, and more than half able to drop their rates by three-quarters of a point it would seem the time is right. It seems with house values plummeting and incomes falling equally as fast that a full percentage point (or even three-quarters) would be the thing to turn things around for many home owners in need.
Tightening credit restrictions, sky rocketing fees, and lacking equity, that’s not going to happen.
In 2008 Fannie Mae and Freddie Mac began instituting fees that, even for borrowers with good credit could face fees equal to 1% of the loan amount, or more.
On Monday the Obama Administration extended a year long program started in April to help borrowers who owe between 80% and 105% of the value of their home to refinance. In September that program grew to include borrowers who owe up to 125% of the value of their homes. The plan was thought to save millions when first launch, but less than 2,000 home buyers have taken advantage.
The Administration is looking into creating additional help for home owners in need.
Have you had a similar experience with securing refinancing? Do you know someone who has? If you have any questions about any of the information feel free to contact us or feel free to discuss!
An article on The Wall Street Journal Online is discussing Harvard plan to sell up to $500 million in real estate assets. Although Harvard’s endowment has approximately $5 Billion in real estate and future commitments to the properties.
Here’s an excerpt from the article about the losses posted and a little on the plan to sell:
Harvard’s own real-estate portfolio “suffered a loss of over 50%” for the fiscal year ended in June, according to a September report from Jane Mendillo, head of the company that manages the endowment, the nation’s largest. Harvard’s endowment posted miserable overall returns last year, declining 27.3% for the year that ended in June.
In November, Harvard began marketing a portfolio of stakes in more than 30 real-estate funds, ranging in size from $50 million to $500 million through Credit Suisse Group, according to several secondary-market buyers and intermediary firms familiar with the offering.
Some of the largest commitments are with real-estate-investment companies such as Beacon Capital Partners, Lubert Adler, Lone Star Funds and Westbrook Partners, according to documents reviewed by The Wall Street Journal. Close to 60% of the funds are in North America, but there are also a number of commitments with real-estate companies in Europe, Asia and South America, according to the documents. A spokesman for Credit Suisse declined to comment.
I really do not see this as a surprise at all. Last year was not a great year for many investments at all, and really to see a 50% loss on real estate values isn’t as bad as some have seen. Losing 27% of the total endowment is a strong blow, but when you have an endowment the size of Harvard’s (currently $26 billion) you generally have some room for ups and downs.
The Article states Harvard Yard is not for sale, but I am very interested in the price it would fetch. I would also be interested in knowing if it’s true that everything is for sale, for the right price.
Taking a look over at Bloomberg.com we see Fannie Mae will be seeking 15.3 billion in aid after their 10th straight quarterly loss. This is coming shortly after the Treasury lifted a $200 billion dollar bail out limit on Christmas Eve and has decided to back them unlimited until 2012. Smaller rival to Fannie Mae, Freddie Mac saw a much smaller negative last quarter and will not be seeking additional aid from the government. Fannie Mae’s net worth is currently at around negative $15 Billion.
Both sides of the political spectrum have been arguing about how to fix the housing crisis. Should we continue to fund a company with 10 consecutive quarters of huge losses with tax payer money? Should the system be totally overhauled? Should Fannie Mae, Freddie Mac and other similar institutions be shut down and become a thing of the past? If so, what will replace them? How can we bring the same security of home loans and still have funds available for potential home buyers?
Another interesting blog find over at The Wall Street Journal debating on whether on not home buyers should wait until after the April 30th deadline. I know you’re probably thinking, “Why is that even a question?” The article mentions some evidence that in the last weeks of the tax credit an increase in demand has been created with home buyers looking to take advantage of the “deal” that is the Tax Credit. In certain markets this can create inflated home prices as well as bidding wars for certain properties driving the prices up higher than the $8,000 credit you’ll receive.
What do the readers think? Have you noticed any spikes in prices in certain areas? Do you think it’s a good idea to wait?
Interesting article on Boston.com reporting that in Massachusetts the average single family home price is almost 10% (9.6%) to $285,000. Sales volume in Massachusetts is up 11.6%.
Timothy M. Warren Jr., chief executive of the Warren Group had this to say:
“We had surprising gains in January, and that’s good news for the economy and that’s good news for the housing market. The real wild card is what will happen after mid-year.’’
Some believe the increase in pricing and volume is happening because of the tax credit that will be ending in April, as well as the artificially low interested rates.
Economic analyst will wait until at least midyear to make a more accurate assessment on the market. Just last week the Fed raised the discounted interest rate from .5% to .75% which was shocking to some, but believed by many to be a step towards normalcy.
What do you think?
Its not all bad news out there……
“Sure, there was a lot of sound (the housing bubble grows) and fury (the bubble pops) in the last decade. But numbers released this morning show that home prices rose by 46% between January 2000 and December 2009. That’s way above the rate of inflation. So odds are if you bought a house at the beginning of the decade and sold it at the end of the decade, you made money. That’s a big deal, given how many people (who don’t wind up as anecdotes in news stories) buy a house and live in it for 10, or 20, or 30 years. ”
http://www.npr.org/blogs/money/2010/02/house_prices_rose_50_in_the_au.html?ft=1&f=93559255
This week (ending Jan 22nd) the average 30-year fixed-rate mortgage dropped to 4.99% from last week when it was at 5.06%. 30-year fixed-rate mortgages at the same time last year were 5.12%. This is great news for potential home buyers as this 3 week in a row drop is great when paired with the Tax Credit for new home buyers that is being offered until April of 2010.
Today Barney Frank said he looks to abolish Fannie Mae and Freddie Mac saying, “The remedy here is, as I think the committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” said Frank, chairman of the House Financial Services Committee. “That’s the approach, rather than the piecemeal one.”
Frank, along with the rest of The Financial Services Committee, is just starting its work on the issue and plans to move slowly. The committee’s first step is to talk to groups like the Center for American Progress and the National Association of Realtors, both who have prepared documents with reccomendations for the overhaul.
David Min, an associate director for the Center for American Progress, said that whatever new structure the mortgage lenders would take, any entities receiving government backing would need to be more heavily regulated to limit risk, with greater product restrictions on mortgage-backed securities and higher capital than what Fannie and Freddie had. The Center argues that reforms should apply to both public and private markets.
You can read more on Boston.com: Barney Frank to Abolish Fannie Mae and Freddie Mac
As we mentioned before, it is never too early to start looking for your next apartment. The sooner you start looking, the better the chances you are going to find that perfect place for you to call home for at least the next year. Take a look at the following places and give Proper Realty Group a call today to schedule a showing!