50 States, 50 Tax Incentives?

I'm not sure how many people have heard about this yet. I, myself, only found out about this a few days ago. Apparently, there's been talk of different states individualizing tax credits in order to entice people to move within their jurisdiction. With the end of the nation-wide first-time buyer tax credit approaching (...again), several U.S. states have started to realize that incentive is the way to go (Isn't it always?). I, personally, couldn't agree more. The biggest problem we're facing right now is the abundance of inventory. It seems like it doesn't matter which state you call home, it's the "time to buy" everywhere.

Now, there hasn't been much discussion (from what I understand) as to which states will offer what. However, I'd imagine it would be based on their largest demographic. For example, on Long Island, we have A LOT of first-time buyers. Really, New York, as a whole does. For us, it would probably be most beneficial to continue a similar tax incentive to the one previously offered. However, maybe other states can offer retirement tax breaks or tax breaks for buyers with school-aged children. Whatever it is, the goal is to stimulate the market. To me, this makes a great deal of sense. Because the state will be making the rules, they can continuously amend them to fit the needs of their buyers. Given what a success (I know some of you will argue otherwise...) the first tax credit was, this new concept of enticement is worth a shot. It seems to be the best solution anyone has come up with in quite some time.

Don't Hold Your Breath

No bounce back in sight. Well, that's a bummer...

Don't Hold Your Breath

More tomorrow...it's be quite a week!

Go Hofstra?

Nice to see my old stomping ground is making good use of their space...

Hofstra Buildings Sold For Workforce Housing

I'm curious to see what type of uproar this causes. I happen to think making use of the vacant buildings is a great idea. However, I'd imagine the parents paying top dollar to send their kids to a private university will not be happy.

I'll Take The Million Dollar Home, With a Side of Fries.

In this crazy, roller coaster of a market, I think it's fair to say that, above all else, we want realistic clients. I'm coming to see more and more that just because someone has a pre-qual/pre-approval, doesn't mean they're realistic in their parameters. Money does not equate in wisdom. (Although, according to my last entry, it helps with happiness!) Now, we're all aware that I know, at best, nothing about Manhattan real estate. It's not my thing. Don't know it, don't like it. However, today, I finally realized that regardless of where someone is searching, they all have the same goal. We've all heard the new "hip" saying "I'm looking for a deal." I haven't spoken to a person in months who hasn't dropped the "d" word. Everyone is looking to pay significantly less for something that, at one point, was valued at significantly more. I think it's gotten to a point that people are done looking for a deal, and have now moved on to making up their own rules. Over the past month, I have heard some of the most preposterous real estate proposals. I fear that people have started to lose their minds.

I spoke to a guy a few days ago who, while very nice, was completely delusional. The conversation started off with the basics, "Where? How much? When? and why?" I was told "Manhattan, 450K, immediately, and for investment." The next series of questions "What part of Manhattan? Are you pre-qualified, or will this be a cash-purchase? Where do you live now? How large of a unit?" Here's where the trouble started. He wanted (well, I should say "wants") a 1bdr condo for 450K and a 10% down payment. On top of that, he hadn't yet consulted with a mortgage broker. Here's the problem, the one building that fits that price point (yes, there is one building in all of Manhattan...so I was told today), does not sublet. Meaning, he could purchase it, but then what? Now, I'm a fairly blunt person. When something doesn't sit right with me, I have no problem saying it. I basically told this man that it wasn't going to happen. However, because I have a few agents who owe me favors, I would humor him and have one get in touch with him. (Or, I said "your search doesn't quite add up, but I'd be more than happy to have one of my agents speak further with you"...whatever). My point is (I know you were waiting), there is nothing wrong with educating a buyer. In fact, I recommend it. However, if you see that someone is spinning their wheels and, in turn, spinning yours, put them on the back burner. I've seen far too many agents waste their time in the past few months. These buyers/sellers/investors give a whole new meaning to the term "testers." They test our patience, and most of all, they test our expertise.

The moral: Be blunt. Though we're trained to beat around the bush and not offend, in this market, that doesn't fly. If it doesn't exist, tell them. If their money won't buy them a 5bdr house on an acre, show them. Utilize the information you have to prove that you are the expert. Sadly, in real estate, the customer is usually not right.

Money Vs. Happiness

I spent a lot of today thinking about Money vs. Happiness. It stemmed from a phone conversation I had with a guy who will be starting Law School in the fall. When I asked him if he was excited, and what kind of law he'd be studying, he said "Who cares? I'm in it for the money." I think it goes without saying that the ideal situation is to work in a profession that offers both happiness and financial reward. What about those of us who aren't fortunate enough to be in that situation, though? I am lucky enough now to be on the path of achieving a nice balance between the two. However, for a long time I wasn't. I always vowed to myself that happiness would trump all else, and I'd never be the type of person who takes a job just to get a paycheck. As we all do though, I grew up and got a reality check. I've come to find that without financial independence, it is hard to be truly happy (clearly, this doesn't apply to all of your heiresses out there. You know, because Paris Hilton is sitting home reading my blog...) I grew up in an upper-middle class town on Long Island, and never needed for anything. I grew accustomed to a certain lifestyle. My whole life, my parents reminded me that my expensive tastes and likes would someday have to be supported by me. That led me to start working at 13. Was it the financial independence that drove me? The idea of freedom? Or, was I scared to live my life based solely on happiness? Let's face it, if I was basing my career choices on happiness, there would be a lot more sleeping and a lot less working. The age old question still remains, though. Does money actually equate in happiness? Or, can our happiness be enough to get us through life?

To be honest, I'm torn. On some level, I'd like to think that I'm down-to-earth enough to not need excessive amounts of money. Money, on that level of my thinking, should be a want. There's the other part of me though, that equates money with freedom. In the real estate world, most of us base our successes on numbers - How many houses did we sell? How much did we gross for our companies? How much did we pocket?- -It's hard not to. While it may be an emotionally satisfying profession on many levels, the ultimate goal is a hug goodbye and a check. In real estate, it's pretty straight forward that if you're not doing any deals, you're not successful. Then again, who knows? Maybe you're just happy to have your real estate license? What is success, though? I'm not going to get all philosophical on you, but isn't it fair to say that if you're happy with your success, you're "successful?" The first time I met my first manager in my first office, he asked me "How many deals do you need to complete this year to make you feel like a success?" I gave him my answer (4...it's my favorite number, and I was 20 years old), and he then explained that he'd be happy with any number, as long as I achieved it. Success is ultimately measured in achieving the goals you set for yourself. On that level, I find happiness to be more important than money. That being said, had I not achieved my goal and not reaped the financial rewards of it, I would feel quite the opposite.

While writing this, I think I've answered my own question. If you're unhappy with a job, chances are, you're not being a very effective worker. We do the best at the things we enjoy. If you're being ineffective, you're not making money. Therefore, happiness is not only more important than money, but is directly correlated. Though I do think money is important, I am a strong proponent of weighing your options. There is no such thing as being "stuck." I've had friends/co-workers/family describe their lives with this term before, and I just don't believe it. We, as human beings, have the power to constantly reinvent ourselves. "Stuck," is not an option.

The moral: Measure your success in your level of satisfaction. Be it financially or emotionally driven, your personal satisfaction is what will ultimately make or break you.

Happy Fourth Of July!

Just wanted to wish everyone a happy and safe Fourth! Today is a day to relax, and enjoy your surroundings!