On March 15, the Dubai government announced that it will allow locals to develop commercial and industrial land gifted to them by the nation’s ruler, Sheik Mohammed bin Rashid Maktoum, in exchange for a fee of 50 percent of the land’s assessed value.

Previously, these lands had been tightly controlled by the government, and their uses were closely monitored and restricted. Now, however, in light of the “estimated 50 percent drop in the value of property in Dubai over the past two years,” (as reported by The Wall Street Journal) the government is taking a new approach: encouraging small businesses.

The government of Dubai hopes that the fees paid (about 25 percent of the estimated value of the properties less than two years ago) will help Dubai raise billions in additional revenue. At the same time, these properties will now be part of personally developed and managed projects handled by the owners of the property, which the government hopes will lead to more development because the investors will be more likely to develop projects that they directly own.

I think this is an interesting idea. After all, the idea of paying some sort of fee for permission and then being permitted to just “do deals” and get them done sounds very appealing. Maybe we should institute a form of this program here: for example, instead of having to season a home, you can flip it right away if you pay a small percentage of the purchase price for skipping the “seasoning” process. Of course, this assumes that seasoning is a reasonable request and requirement, which I’m not inclined to think it is, but imagine the possibilities in terms of liberating real estate investors and paying down our massive national debts…

At the very least, it’s interesting to think about. Sadly, I expect that’s all that it will ever come to. This program is way too “proactive” for our current governing body to be interested and I imagine that the regulations that would come with it could end up stifling real estate investors even further. Furthermore, it seems unlikely that real estate investors would welcome the idea of paying for something that we should be allowed to do anyway. It’s just an interesting notion to think about, and I welcome your thoughts in the comment area below.

Thank you for reading http://realestate.BryanEllis.com!

I’ve read a lot of “horror stories” recently about upside down properties. And it’s bad. The Wall Street Journal reported at the end of February that 11.3 million homes in the United States (that’s 24 percent) are underwater, meaning that the owners of the home owe more on the property than that property is worth.

It would be easy to write an article about what a great opportunity this represents for real estate investors, but I suspect that you probably already know that. In fact, it’s pretty clear that a lot of you are out there literally “saving the [real estate] world” with your ingenious strategizing and maneuvering to help get these homeowners out of hot water while still running a profitable business yourself.

But what to do with the homes once you’ve got them? Well, some trends indicate that a lot of investors are just keeping the properties and planning to rent them out to the new, “locked in” rental population that probably won’t be even considering buying for the next ten years or so. However, a lot of people still want to sell in fairly short order, and that’s where what buyers are looking for really comes into play.

According to a (pretty snarky) article published in the New York Times recently, buyers no longer trust real estate agents, investors, etc. when they say “It’s a great time to buy” because those parties have been saying that since before the boom. However, it seems to me that the problem is not that we are saying that – because it is a great time to buy – but because we are saying it indiscriminately.

The article goes on to quote Barry Ritholtz, CEO and director of equity research at Fusion IQ, who declares that “What they [real estate agents and sellers] are really saying is that it is a good time to be involved in a transaction that generates commission” when they say “it’s a great time to buy.” On the other hand, buyers tend to think it’s a great time to buy when the price of the house is going up – something that may be hard to find in many areas right now.

In order to market properties effectively, sellers (agents, investors and otherwise) need to target buyers on multiple fronts. Unfortunately it is not enough anymore to just say “Hey, it’s a great time to buy” because even though it’s true, we’re met with skepticism because the audience has heard that line so many times before. Instead, we need to figure out what the buyers are looking for on an individual basis (flipping profits, profitable sale in ten years, a home to live in for the next 30, etc.) and market accordingly. Otherwise, even though the sellers are telling the truth, it sounds to buyers like they’re just full of hot air.

Your thoughts are welcomed in the comments area below.  Thank you for reading http://realestate.BryanEllis.com!

Conforming and FHA mortgage rates have improved over the last 10 days, but that could all change this Friday with the release of February's Non-Farm Payrolls report.

Non-Farm Payrolls is the official name of the government's monthly jobs report and, given the fragile state of the U.S. economy, Wall Street will be watching it closely.

Mortgage rates could spike come Friday morning.

Jobs are an important part of the nation's recovery. Among other concerns, unemployed Americans don't spend as much money on goods and services, and are more likely to default on a mortgage. This retards economic growth and increases the potential for foreclosures.

When jobs numbers worsen, therefore, it follows that economic projections worsen, too.

Poor employment figures draw money away from the stock markets and into less-risky bond markets, including mortgage-backed bonds. Mortgage rates improve as a result. Conversely, when jobs numbers improve, stock markets gain and bond markets worsen.

Analysts expect that a net 30,000 jobs were lost in February.

The Bureau of Labor Statistics press release hits at 8:30 A.M. ET, roughly an hour before Friday's mortgage pricing will be available to consumers. If you're worried about rates rising on the heels of a strong jobs report, therefore, be sure to get your rate lock in today instead. Once Friday gets here, it may be too late.

Mortgage markets reeled Wednesday after the Federal Reserve released the minutes from its January 26-27, 2010 meeting. Mortgage rates are now at their highest levels since the start of the year.

The Fed Minutes is a follow-up document, delivered 3 weeks after an official FOMC meeting. It's a companion piece to the post-meeting press release, detailing the debates and discussions that shaped our central bankers' policy decisions.

The Minutes is a terrific look into the Fed's collective mind and, yesterday, Wall Street didn't like what it saw. Specifically, the report disclosed that:

1. The Fed plans to break support for mortgage markets after March 31, 2010
2. Raising the Fed Funds Rate will be a key part of the Fed's strategy to tighten monetary policy
3. The fundamentals behind consumer spending strengthened modestly

Furthermore, the Fed Minutes said that there is a growing risk of "higher medium-term inflation". Inflation, of course, is awful for mortgage rates.

Overall, the Fed's economic optimism appeared stronger after its January meeting as compared to its December one. A stronger economy should lead to better job growth and higher home prices throughout 2010.

Mortgage rates were up yesterday but they remain historically low. And many analysts think that after March 31, 2010, rates will rise even more. Therefore, if you're buying a home in the near-term, or know you'll need a new mortgage, consider moving up your time frame.

Every 1/8 percent makes a difference in your household budget.

Mortgage markets worsened last week on general profit-taking in the U.S. bond market, combined with talk of a coordinated rescue effort for Greece and its debt burden. Mortgage-backed bonds sold off, causing conventional and FHA mortgage rates to rise.

There wasn't much hard data on which to trade last week, either, so momentum took markets farther than they otherwise might have moved on their own. It marked the first time in 5 weeks that rates rose for rate shoppers.

This week, data returns. Expect mortgage market movement.

Some of the week's more important releases include:

1. Housing Starts and Building Permits (Wednesday)
2. The release of the last month's FOMC Minutes (Wednesday)
3. Business and consumer inflation figures (Thursday and Friday)

Inclement weather may have impacted last month's Housing Starts reading so pay closer attention to Building Permits. Permits precede actual construction and can be more indicative of economic optimism. If permit readings are strong, it should be a negative for mortgage rates.

The same is true for the FOMC Minutes.

Last month's FOMC post-meeting press-release was decidedly middle-of-the-road, but the statement is just a summary of the Fed's 2-day meeting, boiled down to a few paragraphs. Wednesday's release of the FOMC Minutes will reveal the deeper discussions among members of the Fed. Wall Street will mine it for clues about the future of the economy.

If Wall Street senses optimism coming from the Fed -- again -- mortgage rates should rise.

And, lastly, keep an eye on Thursday and Friday's inflation data. Inflation is bad for mortgage rates so a higher-than-expected reading should spark a bond market sell-off.

Since mid-December, mortgage rates have moved within a tight range and there's little reason for rates will break this range this week. However, we are near the top of the channel. If you know you're going to need a rate locked soon, it's probably best to do early in the week.