The Collected Works of Author and Blogger Larry Roberts

The real estate negotiation technique Trump uses as President Donald Trump uses executive orders like land acquisition professionals use letters of intent. When I first saw the headlines touting Donald Trump’s repeal of Dodd-Frank by executive order, I literally laughed out loud. I wondered, who does he think he is, Emperor Trump? Does he really think he can change laws by executive order? Does he fail to understand the separation of powers in the US Constitution? The US Constitution, the document Trump swore to uphold, bestows all lawmaking power on the US Congress. The chief executive, the President, can either sign a Congressional bill, or he can veto it, but the President has no power to make law — not…[READ MORE]

Affordability is the major housing market headwind of 2017 Home price affordability will be the biggest issue in housing in 2017, particularly if mortgage interest rates rise. Over the last 40 years, California inflated three different housing bubbles. Starting in the 1970s with regulations like CEQA, California began to restrict growth. This inhibited builders and developers from bringing new product to market to meet demand in many areas. As a result, demand pressures caused prices to rise. Rather than react to rising prices as a deterrent to buying, the sudden upward price movements served as a catalyst for even more buying as homeowners became speculators hoping to cash in on rapid appreciation. As with all financial manias where asset values…[READ MORE]

California's housing policies hurt the working poor the most Californians embraces housing policies that benefit high wage earners and homeowners over the working poor. House prices in California surpass most of the rest of the United States both in real terms and relative to local income. Residents offer many bogus reasons for high house prices — everyone wants to live here, incomes are higher, the sunshine tax, foreign safe haven and so on — but none of these reasons accurately explain why house prices are so high. California housing costs rank among the highest in the nation because we don’t build enough housing units, resale or rental, to accommodate population growth and job creation. To make matters worse, the solutions…[READ MORE]

Will Chinese investors shun the Vancouver real estate market? A huge new tax on foreign investors coupled with a crackdown on capital outflows is a double whammy discouraging Chinese Nationals from investing in Vancouver. If governments really want to stop a certain behavior, what must they do to really stop it? Is passing a law good enough? Well, drugs are illegal, and it never did much to discourage drug use. What about changing the financial incentives? Vancouver real estate is extraordinarily expensive relative to the incomes of local residents largely because Chinese investors buy up Vancouver real estate. The provincial government in British Columbia wanted to discourage foreign investors, so they recently passed a 15% tax on them, specifically to discourage them…[READ MORE]

Hedge funds made billions at the expense of the banks Hedge funds profited from banks that failed to execute the same business plan to recover more of their original loan capital. If banks had taken the same approach to the bust as hedge funds, they could have recovered much more on their bad bubble-era loans. By 2012 they bankers finally realized they could stop foreclosing and selling the REO for rock-bottom prices and instead wait until prices recovered to execute an equity sale. However, there was another business model they could have used to recover more money quicker. Special Home Investment Trust By far the fastest and most efficient way to recover lender capital was to foreclose on their non-performing…[READ MORE]

Page 7 of 379« First...45678910...203040...Last »