Real Estate Information Archive

Pat Wattam receiving award from Marti Dittier

Pat Wattam was named REALTOR of the year by the Greater Baton  Rouge Association of Realtors at their annual installation and awards Ceremony!  "I am thrilled to receive this wonderful honor from my peers!" Pat said after the ceremony.    The award is given to the REALTOR who not only is good in sales but also contributes to the board by serving at the local, state, and national levels as well as giving back to the community.

My financial advisor, Wally McMakin with McMakin Financial, sent out a great email this morning with the difference between 'debt' and 'deficit'.  Here's what he had to say:

In this age of a stimulus spending and bailouts, 'debt' and 'deficit' are often used to describe the federal government's financial situation.  Many people use these words interchangeably, yet they have significantly different meanings.  

Budget deficit:  When the federal government spends more money in a fiscal year than it collects in tax revenue, it creates a budget 'deficit'.  In the rare instances when the government expenditures are less than tax revenues, the result is a budget 'surplus'.  Budget deficits have been the norm in recent decades.  For example, in the past 28 friscal years (1982 - 2010) , there were only 4 years in which the federal government ran budget surpluses.

National debt:  How can the government spend more than it collects?  By borrowing money.  The total amount owed by the federal government is called the 'national debt'.  Because the federal government guarantees the timely payment of principal and interest, many individuals, corporations, state, and local governments, foreign governments, and others are willing to lend their money.  Although Treasure Securities pay relatively low interest rates, they tend to appeal to investors seeking lower risk.  There's also quite a big of borrowing between federal agencies.  For example, Congress has long been in the habit of borrowing excess Social Security revenues.  As a result, the national debt is divided into two categories:  debt held by the public and intergovernmental holdings. As you can imagine, there's considerable debate over how long the government can keep borrowing to financing spending.  Regardless of how you feel about government spending, you might benefit from understanding the terminology.

Thanks Wally for that enlightenment!

Reading this just makes me think of all our home buyers qualifying for a home loan.  Our federal government couldn't qualify for a home with all the deficit the country has!!  I also equate deficit with debt - you spend more than you make, it's a deficit.  You create debt by owing money.  The less you owe, the more of your income you keep, the wealthier you are!!  It's something to think about as we watch the politicians jockeying for their position before tomorrow!!  Pat

There is nothing better than enjoying a concert band for the 4th of July.  We are so fortunate in Baton Rouge to have a fine community band.  The Baton Rouge Concert Band will once more play at 7:30 on the 4th of July on the steps of the Louisiana State Capitol, 900 3rd Street.  The FREE concert is also a good area to view the fireworks.  Under the direction of Sheily Bell, not only will the group perform marches and patriotic music, but also music from Star Wars and Led Zepplin in Concert!  Don't miss out!  Put this on your calendar!!

I know so many people are scared when they think of owning rental property.  The reason I know?  I felt the same what 10 years ago!  When I finally took the plunge, I wondered why it took me so long to see the light!!!  To create wealth, your money has to WORK for you!!!  Owning real estate I have something that I can touch and have some control over it's performance - either by raising rents, enhancing the condition, refinacing to get lower interest rate, or pay it off to generate more income.  

Common Fears:

1.  Don't want to get calls all hours of the night with repair problems, or, don't have any repair skills and the cost to maintain will eat away all profit.  SOLUTION:  place an Old Republic Home Warranty, or other warranty such as AHS, on the property.  If the rent is high enough, have the tenant pay the deductible unless it is a major repair - such as air or heat.

2.  Finding Tenants.  SOLUTION:  We'll help you write you ad and show you how we prospect for tenants for our personal rentals

3.  Property stays vacant too long.  SOLUTION:  Price it competively and make it the prettiest property for the price.

4.  How to price.  SOLUTION:  look in the newspaper and Craig's List to see what your competitors are charging

5.  Where to find a good buy.  SOLUTION:  Let us help you find it.  We ask you questions, find out what your goal is, then help you find the right property!!

Don't be afraid!  You can create financial freedom through the ownership of rental property.  Let us help you make a plan that works for you.  

Call today for a private consultation!  225-298-6900

I received this information from my financial planner, Wally McMaking with McMakin Financial Services that I thought I would share with everyone.

Baby Boomers and Retirement

Procrastination, timing (bad), and poor financial decisions have caused many 'boomers' to face financial disaster just as they are ready to retire.  The situation is serious because 'boomers' have not saved enough for retirement but still want to retire early.  A recent business report form the Associated Press explains the reasons for concern among 'boomers".

REASONS FOR CONCERN

1.  Pension plans are a thing of the past.  In 1980, 39% of workers had a guaranteed pension payout during retirement.  Today, that number has been drastically reduced to 15%.  pension plans have been replaced by 401 (k) plans. which require the employee to save more for his retirement and do not guarantee a fixed payout during retirement.  Today, 42% of workers have 401(k)s.

2.  "Boomers" relied on their homes for part of their retirement income.  The idea was to downsize before retirement and use the profit to subsidize retirement  income.  In some parts of the country, the crash in housing prices has slashed home values by a third. Locally, however, real estate has only dipped about 11% in 2010 compared to 2009.  We are still 38th in the nation in foreclosures - and this is the one time we like being on the bottom of a list!

3.  Mortgage debt for'boomers' is another problem.  Twothirds of boomers between ages 55-64 have a median mortgage debt of nearly $100,000.

4.  Too many boomers are relying on social security to fund their retirement income - no explanation required.

5.  Health care costs in retirement eat up a higher percentage of income.

6.  The unemployment rate is near 10% and many boomers both WANT and NEED to work longer than pervious generations.

Wally told me that it is never to late for many boomers to start planning.  Here are five areas he suggested to think about and act upon NOW:

1.  Create a plan

2.  SAVE MORE NOW!

3.  Retire later.

4.  Scale back your lifestyle

5.  Delay your social Security Income.

Call Wally if you want to discuss any of these ideas.  He has done a great job for us personally.  225-926-9585

wally.mcmakin@smhgroup.com

You've closed on the house, depleted some of your savings so what do you do next?  Try these tips to build your money back up.

1.  Don't Splurge!  It's tempting to buy all kinds of new stuff for the house, but only spend what you have budgeted for it.  Make a list of what you want to do, then as you rebuild your savings, you know what you will want to purchase next!

2.  Rebuild your emergency savings!  This is more important than redecorating!  This should be your first priority.  If you dipped into your reserves to buy the house, then you need to build it back up as quickly as possible to offset any unexpected expenses.

3.  Automate your payments.  Late payments are now even more damaging than ever before.  Automating them insures that your payments are timely and that helps your credit score!

4.  Keep good records.  You'll need receipts and other documents at tax time.

5.  If you home value drops, don't forget to appeal your tax rate.  You can sign up for automated monthly updates on your general location with Market Snapshot.

Using these steps will help get your homeownership off on the right foot.

Curious on what is happening with the Greater Baton Rouge Real Estate Market?  See the video below for an update and a comparison from 2008-2010.

As the media would have us believe, the value of home ownership is over because of the decline in property values in several parts of the country.  I don't know about you, but to me, home ownership is extremely valuable!  My home is mine to do with as I please - decorate as I please, update it as I see fit.  But I also consider it a very important part of my financial plan.

 However, another part of my financial plan is owning rental property!!  So, if the value of home ownership is over, then ownership of rental property must be high on everyone's list.  People need a place to live, and if they can't own a house, then they have to rent someplace - and why not rent from me......or you!!

Rental property, property owned and managed, is a great way to create financial freedom or a nice retirement income.  Call me today and I will show you how to do this.  We will help find you a home that cash flows in the Greater Baton Rouge Real Estate Market, give you the forms you need to interview prospective tenants, and in general, just show you the way.  We love helping the first time investor learn the ropes.  Don't delay!  Call us today at 225-298-6900!!

B.R. employment outlook best in country

The Baton Rouge metro area's employment outlook for the first quarter of 2011 is the best in the country, according to Manpower Inc.'s Employment Outlook Survey, which also forecast Louisiana to have the best hiring prospects in the nation. From January 2010 to March 2010, the Employment Outlook Survey indicates employers in the Baton Rouge area will hire at an "active pace." About 22% of companies surveyed say they intend to hire more employees, while just 4% expect to reduce payrolls. This yields a "Net Employment Outlook" of +18%, by Manpower's calculations. About 21% of Louisiana employers say they expect to hire in the coming months, compared to the U.S. average of 14%. Additionally, just 7% across the state expect to reduce their payrolls—significantly less than the U.S. average of 10%. That puts Louisiana's "Net Employment Outlook" at +14%, and the national outlook at about +4%.

In the New Orleans-Metairie-Kenner area, 20% of companies expect to hire more employees and 10% plan to reduce payroll—equating to a +10% "Net Employment Outlook." The Employment Outlook Survey reached out to more than 18,000 employers in the U.S. It is conducted quarterly to measure employers' intentions to increase or decrease the number of employees in their workforces during the next quarter. The survey has been conducted since 1962.

What a great idea!  Get somebody else to fund your child's college education! Nifty idea?  Well, all it takes is owning rental property. Think about this - if you bought a rental property when the child is born, or within a couple of years, put it on a 15 year payout, then sell it when they are ready to go off to school.  Even if the house doesn't appreciate in value, somebody else paid for it!!  And, if it does appreciate, even better for you!  

In Baton Rouge, you can find good real estate buys that will create cash flow for you on a 30 year payout.  But, if your goal is to have it paid off in 15 years, then concentrate on paying it off, not on cash flow.  Most people are afraid to own rental property.  What if the house doesn't rent?  How do I mange it?  How do I find tenants?  Well, as a Certified Investment Agent Specialists, I have all the tips and forms you need to make this easy for you.  Call me today and I'll show you how easy this is to do.  We'll help you make a plan, and then we will search out the best properties for you, based on your needs.  Talk to you soon!!!!