I recently read an article by a mortgage consultant advising home sellers against putting all the equity they gained from the sale into their next home. He emphatically suggested they stay more liquid, and make their money work harder in another investment vehicle.  As I recall, the word DIVERSIFY came up frequently…as did the phrase, FINANCIAL ADVISOR. His bottom line: “Borrow the biggest mortgage you can reasonably afford and put your other money to work elsewhere. Or, if you’re not selling, harvest your equity in with an Equity Repositioning Refinance…and put that money to work.”

PLEASE! I have 20-odd years of mortgage experience. But I would NEVER tell a client that. Having worked both sides of the market (Realtor® & mortgage broker), I know all too well what happens to amateur investors and people with too little equity in their homes. We all do. They’re dropping like flies out there right now.

The reality is, that man had a not-so-hidden agenda. He wanted all the refi money he could “reasonably” make. And the buyers who listened probably aren’t feeling too secure right about now. A heavy mortgage in this market is a killer. You wind up paying for the house several times over in interest. Your biggest asset can be easily lost if you get hit with a job loss or a heavy medical expense. And the stock market is a crapshoot if you don’t know what you’re doing.

My bottom line: be careful who you listen to. All too frequently mortgage “consultants” are interested in selling not consulting. And “financial advisors” are frequently securities pushers with a fat commission in sight.

As if the sub-prime mortgage debacle that has sent economic shocks into the international economy wasn’t enough to help turn the real estate boom into a real estate bust… The government has just signed into law a disaster-piece under the pretext of a housing stimulus package!

This new piece of legislation basically discourages wealthier homeowners from buying a second home. Previously they could plan to eventually sell their primary residence, take a capital gains exclusion and move into the vacation home, converting it to a primary residence. The new legislation eliminates that capital gains exclusion and takes away a huge incentive for buying that second residence. And it will have a particularly negative impact on the Florida real estate market.

Instead of denying that capital gains exclusion altogether, why not place a cap on it. Now many buyers who wanted a second or third or even fourth home in sunny climes will be financially dissuaded. And that’s a hit this market really can’t afford right now.

Home hoppers have always been a big part of what made this market boom. And quashing their incentive to hop isn’t my idea of a housing stimulus! But why take my word for it. Read about it for yourself and let me know what you think.   Article 

So there I am, standing in my flip-flops watering the lawn. And my cell phone rings. A convenience we’ve all come to take for granted. And who, pray tell, is on the other end but a prospective client in search of a house in my neighborhood…Valencia at Abacoa. Ordinarily, just another day at the office, another client call.

But this particular call was placed from my website to my phone with one mouse click. This particular client had Googled® me. Visited my site. Found the click phone conveniently placed throughout. And decided to try it out. A moment later we were connecting…on a range of topics from her home requirements to her arrival date in the States.

I’m not quite sure which of us was more shocked. The client at just how well that little gismo works. Or me, at what a convenient tool I’d installed.

Yup. You just gotta love technology.

It’s not just because it’s a glorious sunspot for boating, fishing, golfing or hitting the beach. It’s because it now offers a remarkable combination —a laid-back place to live, and a booming place to invest in Florida properties!

From Boca to Stuart and beyond, you’ll be seeing home prices start to rebound dramatically. The reason is simple. Northern Palm Beach County is beginning to enjoy the benefits of a growing biotechnology cluster focused on Scripps Florida… right here in Jupiter!

That’s right folks, if you own a Jupiter home, you’re at the very heart of what’s happening. There’s a significant amount of job-creation activity already. And the biotech corridor is going to continue to grow and create a real foundation of high-wage jobs north into St. Lucie County that is bound to enhance the long-term value of residential properties in Jupiter and Palm Beach Gardens.

So, if you need more incentive than this buyer’s market to invest… you have it. But you better get moving. The market is shifting all the time and you want to be in on the low end rather than upside down on a loan because you waited too long.