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My blog has moved to http://www.Blog-StLouis.com

Repair shops get busy!

The tough economy has created another opportunity. Repair shops are seeing a significant increase in business. I remember being in college and walking into the Cobblestone Shop in Manchester. I was looking for shoe polish. The owner looked at my shoes and indicated that perhaps they could use a little work. I expalained to him that I would just toss them when they were worn out and get a new pair.

The owner of that store, whose name I cannot remember right now, was horrified that I would be so wasteful. He explained to me that he could recondition my shoes and make them new again. And he's been fixing my shoes ever since.

During tough economic times, we all start to think about how we can pinch a penny here and there. The Cobblestone Shop is a great place to start.

13943 Manchester Rd.
Town & Country, MO 63011
(636) 394-1234

I finally got an iPhone

I finally broke down and bought an iPhone. I've been delaying for a long time. The final decision came after seeing the Trulia app in action. With this app, I can search property listings with a map that finds me wherever I am. What a great way to sell real estate in St. Louis!

The Saint Louis Zoo -- Wild Lights

Nightly, December 19-23, 26-30
5:30 to 8:30 p.m.

This is a fun event in St. Louis that we enjoy every year.  Sponsored by U.S. Bank, the Saint Louis Zoo is transformed by nearly 500,000 lights into a winter wonderland complete with your favorite animals, entertainment, and food. For more information, give me a call on my cell at 314-267-2636. 

September pending home sales fall

It's a good life!  What?  Why would a real estate professional entitle a blog post "September pending home sales fall" and then start the entry with "It's a good life!"  

You know, there is always another side to the story.  The article below is from CNNMoney.com, I've copied it here for convenience.  Yes, the September Pending Home Sales Index fell 4.6% after climbing in August.  

But the other side of the story is this:  the September 2008 index is up 1.6% from a year ago.  This is progress.  What caused our pain in September 2008?  On September 7, 2008, James Lockhart, director of the Federal Housing Finance Agency(FHFA), announced that Fannie Mae and Freddie Mac were being placed into conservatorship of the FHFA. The action is "one of the most sweeping government interventions in private financial markets in decades".   Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. 

Those of us who are actively involved in the real estate business knew September was going to post dismal numbers -- we felt it.  

But the fact is, people continue buying and selling houses.  Hey, we're having a sale here!  "Everything must go!"  "One year only sale!"  "Inventory clearance!"  This is the time to buy your first home.  This is the time to invest in a rental property.  This is the time to move up (you'll take a beating on your sale, but, if you're moving up, you'll give the seller a bigger beating on the purchase!)  

NEW YORK (CNNMoney.com) -- Homebuyers pulled back some more in September amid turmoil in the financial markets.

The Pending Home Sales Index for the month fell 4.6% to 89.2 after climbing 7.4% in August, according to the National Association of Realtors (NAR). Still, the index was up 1.6% from a year ago.

NAR said the dip in sales was tempered by a sharp decline in prices, which fell 9% year-over-year in September. Also propping up sales to some extent were affordable mortgage interest rates, which dipped below 6% for a 30-year fixed-rate loan during the month, according to Freddie Mac (FRE,Fortune 500).

It doesn't look like things will improve soon.

"Right now, we're in a recession, and unemployment will increase through 2009," said NAR chief economist Lawrence Yun. "Consumer spending has halted and businesses are very cautious of expanding. It is unclear by how much the global economic slowdown will dampen U.S. exports, which had been rising strongly."

In contrast to Yun, The National Bureau of Economic Research - which is the organization whose definition of a recession is most widely accepted - has yet to call the current downturn a recession.

Yun expects that the economy will continue to deteriorate, with the gross national product contracting through the end of 2008 and first quarter of 2009.

"The depth of the recession depends entirely on housing," he said. "With sufficient housing stimulus, the recession will be shallow. If government actions stay focused on housing, the cost to the Treasury would be much less that the potential losses in the nation's output and income in a severe recession."

One bright spot: NAR reports that the drop in home prices, combined with low interest rates, have brought home buying affordability to 2003 levels. But the improved affordability may not be enough to quickly bring housing all the way back into recovery.

"To me [the pending home sales drop] is another indication that we haven't hit bottom yet in the housing market," said Nariman Behravesh, chief economist for Global Insight.

The financial market turmoil and the freezing of lending have slowed home sales. "A lot of people simply can't get a mortgage these days and that's a key element," he said.

Yun, however, noted that pending home sales did increase in the regions that have already seen massive price declines.

September sales volume climbed 3.7% in the West, and was 39.5% above a year ago. In the Midwest the index inched down 0.7% to come in 3.1% below September 2007. Pending sales in the South dropped 7.9% for the month and were down 11.3% compared with a year ago. In the Northeast, the index dropped 16.8% for the month and 9.4% year-over-year.

With the economy slowing, Yun revised his forecast for existing home sales downward to 5.02 million for all of 2008. Last month, he forecast sales of 5.04 million existing homes.

The total should rise to 5.32 million in 2009, according to Yun. He said new home sales are likely to amount to 487,000 for 2008 and 413,000 in 2009.  

Sales of newly constructed homes rose in September, according to the monthly report from the U.S. Census Bureau, inching up 2.7% from August to an annualized rate of 464,000.

But the reading was still the worst September for new home sales since 1981. Sales are down 33.1% from September of 2007, and far below the pace of the boom years. In 2005, for example, 1.3 million new homes were sold.

Unbelieveably low rates in the early to mid-2000s created such interest in real estate that 40% of home purchases in 2005 were non-owner-occupied -- investment properties, 2nd homes, vacation homes, etc. So, when you compare todays data to anything in 2005, you are getting a really skewed look at things. 2005 was the odd year, not 2008. 2008 is far more normal than most consumers realize.

It's like the tech boom of the late 90s. Everyone was pouring money into theses stocks without thinking. And it always crashes...eventually.

But it's great news that today's new home sales numbers are higher than last month. We will recover from today's problems. And, hopefully, we'll be a whole lot smarter.

Deflation

Lower gas prices sound good...but, have you thought about...deflation.

Ugh....

"When prices start to fall because of lack of demand, they can go well below the cost it takes to produce products," said Bernard Baumohl, executive director of the Economic Outlook Group. "Companies have no alternative than to cut back production and lay off a lot of workers. That cuts demand more. You get this vicious downward spiral in prices."

Stocks rallyed yesterday-- up over 900 points. This surge represents the Dow's best day ever. This morning, futures are pointing to another surge. Investors reacted to global efforts over the weekend and into Monday aimed at unfreezing credit markets and getting money flowing through the pipelines.

This morning the Bush administration will announce the Treasury's intention to spend $250B for direct equity stakes in banks.

International markets opened strong as well.

FHA Myths

FHA loans will account for nearly 50% of the loans in the US over the next 12 months. Many myths surround the FHA mortgage. But, more and more, I see people choosing this loan because it offers some flexibility not found in the conventional market.

A few years ago, very few mortgages were FHA because the subprime market looked more attractive. Well, subprime lending is gone. And FHA has stepped up to rescue the borrower who may need a little extra help.

Matt Eversgerd, of First Integrity Mortgage Services, has put together a small list of FHA myths. I highly recommend Matt to my clients. He can be reached at 314 620 7227.

Please see the link below for more information.

R

FHA%20Myths%21%21

Greenspan says the U.S. housing market will recover -- soon!!

I'm beginning to feel signs of a recovery in the market. Things have been slow, but I've got people looking for houses in the St. Louis area. Moreover, Nolting Real Estate's listings are selling. Former Federal Reserve chairman Alan Greenspan said the U.S. housing market will begin to recover in the first half of 2009, according to an article he wrote for Emerging Markets magazine published on Friday.

The rate of decline in U.S. home prices is the first positive note in the year-long trauma and that eventually, frozen credit markets will thaw "as frightened investors take tentative steps toward reengagement with risk."

"More conclusive signs of pending home price stability are likely to become visible in the first half of 2009," he wrote. In yesterday's post, I noted that pending home sales are up.

There is a light at the end of the tunnel.

9.1 Months

Using the latest data from the St. Louis MLS (August '08), I've calculated that our current St. Louis residential housing inventory will take about 9.1 months to sell. Last August, we were running at about 8.07 months.

Is my head in the sand?

Maybe. I know that the local and national (and international) real estate markets are bad. For the purpose of this blog, I choose to focus on good news. I'm confident that my readers are finding the bad stuff elsewhere.

Frankly, focusing on the good news is a survival tactic for any good Realtor in today's market. Let's face it, do you want to work with me if I have a bad outlook.

We're having a good year -- at least that's what our numbers say. By August of this year, we had sold more real estate than in all of 2007. So, I'm positive. I have a tinge of heartburn over the Dow falling 679 points yesterday. But I'm bullish on the future of the real estate market. The deals are out there -- It's a great time to buy.

Now on to some more good news:

The National Association of Realtors says pending home rose 7.4% from July to August, an unexpected piece of positive news for the battered U.S. housing market.

The group said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.

Wall Street economists surveyed by Thomson/IFR had predicted the index would fall to 84.9.
The index, which sunk to a record low of 83 in March, stood at 85.8 in August 2007.

Bull Markets Last Longer

by greg howell (314.854.5607 direct)

HOPE:
While the markets continue to decline and the end seems to never get here, I wanted to give you a little hope. I have talked with a lot of clients and the overwhelming question seems to be: "Should I hang on because if I do, my account is going to end up being zero?"

PLEASE TAKE3 MINUTES TO LOOK AT THIS ATTACHMENT (it will hopefully give you calming effect to what you are reading in the papers and seeing on TV).

HISTORY:
Go back over just the past 40 years (to 1968).....the 2 worst down(Bear) markets have been 1973-1974 (when the S&P 500 fell 43% over 21months), and 2000-2003 (when the S&P 500 fell 43% over 30 months). We are currently in the 14 month of this Bear market and the S&P 500 is down about 28% since Jan.

LOOK AT WHAT HAPPENED AFTER THE S&P 500 STOPPED DECLINING - from 1974-1976 the market went up 86%!!!!! After the tech bubble in 2004-2007 the market soared 91% over the next 5 years.

We WILL have another Bull (UP) market......It WILL come.....you just have to ride out the bear markets to enjoy and reap the benefits.

With the being said, if you can't take any more pain, then call me and we can discuss the appropriate options.

Also - If you know of anyone who is asking you questions about what they should do and you don't feel comfortable giving advice, please pass my name along to them. I would love to help any of your friends or family.

Gregory R. Howell
Vice President-Wealth Management
Financial Advisor
citi smith barney
101 S. Hanley Road, Suite 600 Clayton, MO 63105
Tel: 314.854.5607 Direct 800.325.0630 Toll Free
314.854.5606 Fax
For account access or market information please access my website at
http://fa.smithbarney.com/greghowell
Bull_Markets_have_lasted_longer%5B1%5D.pdf

How did we get here?

Where did all of this reckless mortgage lending behavior come from? What started us down the path of loaning money to those who were previously unloanable (is that a word)?

During the dot.com bailout, in 2001, the Fed lowered key interest rates to historic lows. This was an attempt to revive the economy that had been destroyed by the dot.com run up.

Homeowners, armed with historically low mortgage rates, began purchasing properties as if they were playing monopoly. Prices of real estate soared. Investors bought larger, more expensive properties with little money down. In 2005, 7.1 M properties were bought in the US. 40% of them were non-owner-occupied!!!

Wall Street investment banks bundled risky mortgages, packaged them into bonds, and sold them to banks and investors. Bond-rating agencies gave these investments high ratings.

But the subprime borrowers began defaulting on their loans -- some because their adjustable rate mortgages adjusted upward, some because they simply were "bad pay" from the beginning.

Like a house of cards, these defaulting borrowers created a series of events that sent housing prices downward. Banks and brokerages that had borrowed money to boost the impact of those investments had to race to raise capital.

Some, like Merrill Lynch, were forced to sell. Others, like Lehman Brothers, weren't so lucky. "These firms closed their eyes and made very bad bets on risky securities that they didn't truly understand," says Jeremy Siegel, finance professor at the University of Pennsylvania's Wharton business school. "Investments that they did not have to make led to their demise."

More on this soon...

Fed: Emergency cut

The Federal Reserve, working in coordination with other central banks worldwide, enacted an emergency interest rate cut on Wednesday. The Fed lowered its fed funds rate by half of a percentage point to 1.5%.

By lowering this rate, money gets pumped into the economy because borrowing costs go down. In their statement the Fed said, "The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability."

Rate cuts by the Fed always lead to concerns about inflation. Although inflation has been high, the Fed believes that the recent drop in energy prices and the weaker prospects for economic activity have reduced this threat to the economy.

This aggressive action by the Federal Reserve is the latest attempt to get the economy turned around. For more information about the St. Louis housing market, call me at 314 267 2636.

Move up buyers

Visit http://www.NoltingRealEstate.com for more information.

Is it a good time to buy? We all know that first time homebuyers have a huge advantage right now. Homes are selling cheap!! It's the perfect time to get a good deal.

But what about the move up buyer? I recently helped a family move into a larger home. They had a home to sell. In 2006, they could have gotten about $240k for their old house. We sold it for $210k. That a pretty big loss.

Now for the good news. We moved them into a much nicer home that cost them $280k. In '06, the same house would have cost them in the mid-330s.

Simple math shows that the $50k savings on the purchase more than makes up for the $30k loss on the sale. The family gained $20k in net worth.

You see, we've got to get over our obsession with the depreciation of our current houses. Yes, they've gone down in value. SO, HAVE ALL THE OTHER HOUSES IN TOWN! It may take a few years to recover the loses of the last 2 years, but you can trust that you are notthe exception. Your purchase will be at a lower price too!

2469 Clarjon, Ballwin, MO 63021

OPEN HOUSE!! SUNDAY 10/05 2PM TO 4PM!! Beautiful 4 BR/2.5 Bath home with a gourmet kitchen and two story great room that has 15 windows and a gas fireplace. The large kitchen has granite counters, top of the line stainless appliances including a Thermador 6 burner w/grill range, GE Profile convection oven, LG side by side, granite desk work space, fabulous walk-in pantry and light oak hardwood floors. Media Room/Den has a brushed nickel fan, hardwood floor and surround sound. The Master Bedroom has a large bay window as does the master bathroom - with jet tub and separate glassed shower. Even the 3 car garage is completely finished, painted and organization shelving all around.

Spray and Pray

Joe Niego of Chicago talks about business being a game of Spray and Pray. We generate as many leads as possible and pray for them to turn into transactions.

I tell my buyers that real estate purchases are a process of elimination. We're going to search for the right geography and house attributes and eliminate the duds until we get down to the last one or two -- the ones that best fit the bill. We'll write on one, negotiate the price and move toward closing.

Today is a little different. Foreclosures and short sales are popular among buyers today. Everyone is looking for the phenomenal deal. I'm excited to help people buy these distressed properties--but it ain't easy. Banks don't operate like typical sellers. They are hard to get along with.

Today if you write an offer on a short sale or a foreclosure you have approximately a 1 in 4 chance of getting it accepted – even if it’s the best offer. You have a 1 in 3 chance of even getting a response. Many of us are frustrated because this is not how the business is supposed to go. Well, like it or not, this is how the business is going today.

The spray and pray approach works like this: if you want a distressed property, be prepared to put out a bunch of offers. Most will get rejected or ignored. But we just keep putting them out until we get a winner. You will get frustrated -- honestly, I will too! But this is what we do in this market. We put out the offers and pray one gets accepted.

You've got to keep a positive attitude when looking for a distressed property. But it's worth the trouble, if you get a great deal.

It's a good life.

The Emergency Economic Stabilization Act of 2008 was signed by President Bush into law yesterday.

What can we expect from the bill? (from the National Association of Realtors)

The Bill Will Help Homeowners and Borrowers in St. Louis

The Senate legislation responded to the criticisms that lenders have been slow and/or unwilling to work with homeowners and borrowers. It encouraged negotiation in short sales and consumer efforts to refinance or reconfigure existing mortgages:

1. When the Treasury (or other federal agency that holds mortgages) acquires troubled existing mortgages from financial institutions, agencies are required to work with lenders and mortgage servicers to find ways to avoid foreclosures.

2. All federal agencies are required to work with servicers to facilitate loan modifications that will consider the net present value of the mortgage.

3. Similar refinancing and foreclosure prevention requirements apply to mortgages involving owners of multi-family properties and owners of commercial properties. Policy goal is to assure that tenants don’t lose their residence or their place of business when an owner has problems with the mortgage.

4. Changes to existing mortgages can include (but are not limited to) revisions in principal, interest rate and period for repayment.

TIME IS MONEY

About 3 weeks ago, Heather and I put in a offer for one of our clients to buy a short sale. (A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property) We still haven't heard whether or not the bank will take the deal. WE SHOULD HAVE BEEN CLOSED BY NOW!!!!!

Why can't banks work faster at selling these troubled properties. I've got a ready, willing, and able buyer who is looking to close right away. Shouldn't the banks be required to get their butts in gear and sell us these distressed properties? If it weren't such a pain in the rear, I'm sure I could round up a decent number of investors to buy these troubled properties. I need the government to step in and help me help my clients to help the economy.

Homes in foreclosure

It seems everyone is talking these days about foreclosures...

There are pockets, places such as Stockton, CA and Las Vegas, NV where the foreclosure rate is in excess of 4%, however, the national average is 1.033%. Considering the fact that 30% of all homes are actually free and clear of any mortgage, the true foreclosure rate is actually seven tenths of 1% of all homes.

So, 99% of all homes in the US are not facing foreclosure. There's a spin that is needed.

BREAKING NEWS....A REPORT OUT TODAY NOTES THAT MORE THAN 99% OF THE HOMES IN THE UNITED STATES ARE DOING JUST FINE FINANCIALLY...FULL REPORT AT 11.

Now, if you're in the market for a home, you'll see lots of foreclosure properties because most of them are for sale. They make up a decent percentage of the "For Sale" market, but not of the total homes in the country.

Let's get the facts straight -- it's not as bad as the media would have you think. And, by the way, did you know you can still buy a home with 3% down, 30-year fixed rate mortgage, 6.0% interest rate? Call me, I can help. R 314.267.2636

It’s not hard to get a loan!

By: Matt Eversgerd

Many people have been asking, “How did we get to this place in the housing market where it’s so hard to get a loan?” My response is simply, “It’s not near as hard as you think.”

There are four main components that go into a lending decision: credit, income, employment, and down payment. If you are in the majority that have managed your credit well, lived within your means, demonstrated an ability to save money, and have at least 5% to put down, you will get a great loan with no hassle.

So what if you have “challenging credit?” What if you have very little money to put down? I have good news…FHA (Federal Housing Administration) is here to save the day. With 3% down, and this can even be a gift from a family member, you can get a 30 year mortgage at a very low rate. We will require you to have a job. We will require you to buy a home you can afford. We will demand that you have paid most of your creditors on time…sound fair?

The bottom line is this. There are homes to buy; there are loans available. Prices are lower than they were a few years ago and interest rates are still at historically low levels. It’s not hard to get a loan!

2008 real estate update

It's not a bad market for everyone. Nolting Real Estate just celebrated its 25th closing for the year -- more dollars and units that in all of 2007! It's a great time to move if...
... you have nothing to sell -- deals are out there all over the place.
... you have enough equity to sell -- you may take a hit on your sale, but you'll get a bigger discount on your purchase (if you hire a good negotiator!)
... you are a first time home buyer -- yes, you can still buy with VERY LITTLE DOWN.

Call me -- 314.267.2636.

What You Should Know About A Buyer's Market

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.

That doesn't mean throw caution to the wind.

Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.


Begin with making a personal "right-time-to-buy" decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.
On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.

Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.


Get to know the many facets of home buying.
You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. You should sit down with your REALTOR® for the most effective guidance.


Next, get to know your local market or the market where you plan to buy, because that's where your action is.
Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your local market.

Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.


Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to low-ball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.
Your Realtor is schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.


Check your credit. Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.

Get your cash in the pipeline. Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shopping to get the most money at the cheapest rate.

Taking The Real Estate Investment Plunge

Just like buying a home to live in, taking the real estate investment plunge requires taking stock of your financial goals, planning and lifestyle before taking the plunge.
Pretty much like buying any property.
If you've got the time, the money and the lifestyle that lends itself to managing a real estate investment, you are just about half way there.
However, both halves are pretty big halves.
The National Real Estate Investors Association says you've still got a lot of work to do.
Here's what.
Buy your own home first. Buying a home will not only put a roof over your head, but also teach you the true cost of property ownership beyond the monthly mortgage payment; give you a primer on financing; school you on how location and changing market conditions affect property values; give you the angle on tax and other home-owning benefits; help you learn about property maintenance; introduce you to a host of professionals who could prove invaluable when you really get into investments; and otherwise get you grounded for higher studies in real estate investments.
Even before homeownership, the involved process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more, your first home could later become your first investment property, a property in a market with which you are familiar.
Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't make you a market mogul any more than a housing bust should scare you off. After you buy your own home, turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses, even your state's real estate license program. Become your own expert. You aren't required to sell homes just because you have a real estate license, but what you'll learn getting one will certainly give you a leg up on your investment moves.
Individual real estate investors, salespeople and others who you met on the way to homeownership may also be valuable resources, both for information and perhaps as a mentor. Using more than one resource will help you cancel out the bad information and ferret out the good.
Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate.
Someone who already knows the ropes will come in handy when you are on the ropes.
And chances are, no matter how hard you study, you'll need professional help to acquire your investment and later, beyond the buying stage, when questions arise, property management issues surface or you get bogged down by your new endeavor.
That's particularly true if you invest from a distance and buy investments away from your primary residence.
Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but still not appreciate. Another home in another market may not bring you sufficient rent in a year's time to cover the cost of owning the property, but might appreciate more than enough to make up for your carrying costs over the long term.
The variables are endless and you'll need to measure your capacity for risk against market conditions.
This is where education and professional help come in. Your education should teach you not only by rote, but also how to find the answers you need. The pro is your point person and backup to help you fill in the gaps with experienced guidance.