Huge Savings Are Now Available on Condominium Resorts Worldwide

Most readers are aware that travel to timeshare resorts normally allows you to stay in one of the best condos in town. You are probably not aware that you are able to stay in these beautiful condominiums without the high cost of a timeshare purchase or the payment of numerous fees associated with timeshare ownership?

A unique situation has been created over the last 25 years with thousands of timeshare resorts opening and selling thousands of weekly timeshare units each year.

Here's how you can take advantage of this situation and use these properties with your own membership affiliation.

This program has been offered throughout North America for more than 25 years. Until March of 2007, when a new marketing arm was created, it was only available through the purchase of an expensive vacation club membership, and only offered for sale through private invitations to seminars. The membership cost was $10,000 or more. It's now available for immediate use for a fraction of that cost.

Why stay at timeshare resorts? If you have ever visited a timeshare resort, you realize that these resorts are in the best locations and are generally the nicest resorts in that location. Why? Each timeshare week will sell for up to $40,000. (That's for the use of one week per year, plus you'll need to pay an annual maintenance fee of approximately $500.00. ) Unfortunately, many thousands of timeshare weeks are not being used by their owners, these weeks turn into excess inventory and are sold to wholesale brokers and vacation clubs. This creates one of the best travel opportunities available in the world today.

What if you could stay in a luxury resort condo for as little as $298.00 for an entire 8 day 7 night week? There are more than 5,000 resorts participating in this program with no black out dates and it includes units that have one, two, or three bedroom suites for this price. You'll also have the luxury of a professional travel adviser to take care of airline reservations, ground transportation, and information about your destination area, all at the best available prices.

If you could stay at one of these one, two, or three bedroom suites in Hawaii, Las Vegas, Orlando, Branson, the Bahamas, Italy, France, Barbados, Cabo San Lucas, Vail, Colorado, or many other areas throughout the world for as little as $298.00 for the week, would you go? Many people spend more than $298.00 for a 3 day trip for their family to stay in a small hotel room. Many of these resorts are within a short drive from your home.

Thousands of smart consumers are now becoming members of this vacation program and are using these 5,000+ condominium resorts inventory for their family or business vacations. Others use this program to earn extra income for their family, their church or other non-profit groups in their community. Some people do both.

A Beginner's Guide to Condominiums

The condominium market has ido rising steadily in recent years. According to the National Association of REALTORS (R), condominium values increased by more than 27 percent between 2000 and 2002, and the median value of condos ($ 163500) sat just below that of single-family homes ($ 168400) in mid - 2003. While this trend is not guaranteed to continue, the condominium market has regained momentum and the importance it had in the initial boom of condominiums the 1980's.

Condo buyers are divided into three main groups: for the first time buyers to quit rent; people looking to buy a second home that will use part-time and retirees who are trading in high-end housing for low-maintenance a lifestyle offers condominiums.

A condominium can be a great purchase under the right set of circumstances, but some people still dismiss as glorified apartments. If you do not feel comfortable living in condominium rules and restrictions, and in close proximity to others, then a condominium is probably not the place for you. Before buying a condominium, be sure to understand exactly what is involved in condominium living.

What exactly is a condominium?

A condominium development can take the form of style apartment complexes, townhouses or become multi-family dwellings. What distinguishes it from other multi-tenant buildings is that the developer has legally declared that a condominium, and individuals can purchase units in the building or complex. In most states, this means that development is specially designated under the laws and regulations applied to condominiums.

When buying a condominium, the owner acquires title to his unit, until the walls, but not between them. A description of a condominium is a "box in the air."

The common areas of development, such as stairways, dividing and exterior walls, gyms and rooftop gardens, are shared ownership. Each unit owner has any interest in these spaces. In order to manage the maintenance and repair of common areas shared, each condominium development has a condominium association, also known as a unit owners association. The association is elected by the owners of condominiums and makes decisions in the communal interest of the community.

Condo costs include:

* Arras, mortgage and property tax
* Condo fees, also known as maintenance fees. Condo fees are paid by all residents to help with building maintenance, salaries of groundskeepers, janitors or tasks, and provide facilities such as luxury swimming pool, gym or rooftop garden. Condo fees are paid monthly and are subject to change
* Special assessment rates. These rates can be requested when an unexpected repair or planned modification exceeds the cost of fees collected condominium

Rules to live by

Condominiums are governed by a set of rules called covenants, conditions and restrictions (CC & Rs). The rules vary from one to another condominium development. They can impose restrictions on ownership of pets, noise levels, remodeling projects, and rent. The CC & R are implemented by the condominium association. It's a good idea to read the CC & R to make sure you're comfortable with them before buying a condominium.

Condo associations and fees

The condominium association budgets and determines the fees for all condominium units. Condo fees are often determined by the size of your drive, how many units are currently occupied, and projected costs for building maintenance and repair.

Condo associations vary in their organization and experience. Some questions you may want to see are as follows:

* Whether the association to maintain a reserve fund to pay for the unexpected and potentially costly repairs? This will help determine whether it is likely to beat with a special assessment rates.
* Has the association maintains the building in good condition? Can Handle repairs and maintenance before they become major problems? Before you buy, is a good idea to get an inspection in the unit you fancy, as well as the entire structure in order to identify potential problems.
* Whether the association intends to add facilities, such as a swimming pool or gym, in the near future? This could cause a sudden increase in their fees. Ask to see the minutes of recent meetings of condominium associations, which should disclose any such plans.
* The development is pending lawsuits? Are there any conflicts between landowners, developers or the association you should know about?
* What is the reputation of the association in the building? Talk to other owners for comments or complaints about the activities of the association.

A word about developers

The developers do not usually maintain a long-term interest in a building, but the work they put into it is important. A home inspection can turn up major structural faults in the building, but not based on this alone. You should investigate the developer's history, and find out if there had been any problem with its evolution. Also find out if the developer is still in business and whether it is financially stable. If the developer is no longer in business, its condominium association may have little or no legal recourse in the event of serious flaws are discovered on the property.

The planning of some projects home improvement? Finance with a home loan or credit line.

A "Dead-Cat Bounce" in the Rocky Real Estate Market

"The secret of success in life...is to be ready for opportunity when it comes." --Benjamin Disraeli

The phrase "Dead-Cat Bounce" is finance industry term derived from the notion that "even a dead cat will bounce at least once if it falls from a great enough height," and describes a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise--before resuming its downward movement.

The connotation is that the rise is not an indication of improving fundamentals of the stock. A "bounce" is often the result of speculation. Traders buy into what they hope is the bottom of the market, expecting a "bounce" and making a quick profit.

Thus, the very act of anticipating a bounce can create and magnify it.

There is evidence of a "Dead-Cat Bounce" happening in the current real estate markets in several parts of the country. Investors are rushing headlong into some of the worst markets (Stockton, CA is one such example) and actually bidding up prices against retail buyers for REO listings--on homes listed at prices still higher than the affordability levels for the areas where they are located!

Many investors have been brainwashed by Wall Street and the media to think that "buying low" is always a winning approach. But "buying low" all by itself, is a very speculative strategy--and more so in times like these.

The biggest challenge is that turnarounds are often difficult to spot because deflation in the housing markets typically runs about 18 quarters (4.5 years), and false bottoms in housing sales and starts are common.

It is imperative to stay focused on ways to navigate the foreclosure and pre-foreclosure markets right now because the real opportunity will only come in 2009-2011, depending on the region. So--buying for value is the optimal strategy.

Find news to use--avoid noise!

Booms are always set up by Wall Street and publicized by the media. When the inevitable bust occurs, Wall Street uses the media as their partner for denying the truth, while they take their profits and run. That is why most people suffer during periods of crisis.

Investors would be wise to ignore everything Wall Street, Washington, bank, and real estate industry shills state about the real estate and banking crisis, the economy, and the capital markets.

The few who make out big during busts are extremely selective about paying attention to only the most credible resources because their time is better spent doing their own analysis.

Success is never an accident. It is the result of high intention, sincere effort, intelligent direction, and skillful execution. It represents the wise choice of many alternatives.

For us as creative real estate investors and note investors, the biggest challenge we face TODAY is knowing WHEN and HOW to jump back into the marketplace--and avoiding the "noise" until that point.

Whether your believe the news these days is good news or bad news, if you are going to be successful as an investor, you have to take it upon yourself to analyze the entire scope of what is reported. Form your own studied opinion, explore your options, and make your moves.

Being static, without a well-conceived plan for when and under what conditions you will take action, generally leads to the same poor results as charging headlong into battle without a vision of the outcome.

Housing market declines are steep and accelerating

The current recession will most likely turn out to be the worst in decades. There are many more problems ahead. My forecast for the next 5 to 7 years includes the following economic scenarios.

• Deleveraging (the process of taking leverage out of the financial system) is the dominant theme in the markets in 2008 and going forward for at least a year, as the capital markets recoil from the massive losses in structured finance and the housing bubble. This process will transform the banking industry, putting an increasing drag on economic growth and corporate profits.
  
  

• Due to the weakness in the economy, the next trend in the housing correction will be a crisis in prime mortgages, and...
  
  

• A likelihood of a meltdown in the $40 trillion global credit CDO market for the same reasons that crashed real estate securitizations, as a massive credit card crunch is looming right around the corner;
  
  

• Many more hedge fund blowups, corporate bankruptcies, bank failures;
  
  

• The inherent rise or interest rates that has to come with bank deleveraging--only now in its early stages. After 2010, you should expect inflation and interest rates to really begin soaring, which will put an increasing drag on economic growth and corporate profits.
  
  

• From their peak in 2006, home prices will ultimately decline to pre-1999 levels between now and 2012. Commercial real estate market will also suffer.
  
  

• The rental market is set to heat up, and will provide good investment opportunities for patient and prudent investors.
  

The data is in, and it's pretty conclusive. As of May 2008, prices are down some 30% in the past 12-months--no surveyed city stayed above water. Prices in cities in the index have now pulled back to a level not seen since August 2004. But most middle-income workers still don't earn enough to buy a median-priced home in their home towns.

A quick update from recent reports includes The Center for Housing Policy's recent study comparing housing costs in 201 metro areas, with the median wages in those areas for 60 major vocations, such as police, firemen, nurses, teachers, customer service reps, officer workers, and food service personnel.

For typical working people in most markets home ownership remains far out of reach, although home prices fell in 161 of those markets in the 12 months ending September 30, 2007!

More recently, the well-publicized 2008 Harvard Housing study discussed the fact that the median wage-earner is unable to afford the median priced home and forecasts a drop in real estate prices to the 1999 level.

Affordability rules the day

Buy to deliver affordability to the retail real estate market, and you won't miss the bottom--you'll establish it! No hype. No Ju-Ju. No "Come-Bets." Use basic common-sense metrics, applied to the income/affordability specifics of a given area.

Bush signs housing rescue law

President Bush on Wednesday signed into law a sweeping housing bill that aims to boost the struggling housing market and bolster mortgage finance giants Fannie Mae and Freddie Mac.

The Senate voted 72-13 in favor of the bill on Saturday, after the House passed it three days earlier.

"We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac," said White House spokesman Tony Fratto. "The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes."

The new law, one of the most far-reaching on housing in decades, marks the centerpiece of Washington's efforts to address the nation's housing meltdown.

The legislation has two principal objectives: to offer affordable government-backed mortgages to homeowners at risk of foreclosure, and to bolster Fannie and Freddie with a temporary rescue plan and a new, more stringent regulator.

The White House last week reversed its long-standing threat to veto the bill. In fact, the administration still objects to parts of the legislation, including aid to states to buy foreclosed properties.

But the president decided to sign it since "oversight of the housing government sponsored enterprises (GSEs) and the new temporary authorities requested by [Treasury] Secretary [Henry] Paulson are urgently needed now, and they'll contribute to confidence and stability in housing and financial markets," Fratto said last week.

Helping at-risk borrowers

Provisions that will most directly affect consumers and communities include:

A larger role for the Federal Housing Administration. The FHA will be allowed to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the homes' current appraised value.

The cost of the new FHA program - which would begin on Oct. 1 and be in place for just a few years - will be funded by fees from Fannie and Freddie, along with fees paid by both lenders and borrowers.

While the law authorizes the FHA to insure up to $300 billion in loans, the CBO estimates that the agency is only likely to insure up to $68 billion and help keep roughly 325,000 people in their homes. Those estimates were based on the CBO's assessment of who is likely to qualify under the program and accounts for a certain number likely to default anyway.

(Here are more details on this provision.)

A stronger regulator for the GSEs. The new regulator will have a greater say over how well funded the two government sponsored enterprises (GSEs) are - a major concern in the markets that has sent stocks in both companies plunging in the past two months.

A permanent increase in "conforming loan" limits. The law will permanently increase the cap on the size of mortgages guaranteed by Fannie and Freddie to a maximum of $625,500 from $417,000.

The FHA maximum loan limits for high-cost areas would also increase to a maximum of $625,500. Higher loan limits will make it easier for borrowers to get mortgages, because those mortgages are more likely to be traded if they are considered conforming.

A new home-buyer credit. The new law includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500.

The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments.

A ban on down-payment assistance from sellers. The new law eliminates a program that has allowed sellers to provide down payment assistance for FHA loans.

The law would also increase to 3.5% from 3% the down payment requirement for borrowers getting FHA loans.

A new affordable housing trust fund. The law establishes a permanent fund to promote affordable housing. The fund will be paid for by fees from Fannie and Freddie.

Grants to states to buy foreclosed properties. The law grants $4 billion to states to buy up and rehabilitate foreclosed properties. The White House has opposed such funding, contending that it will benefit lenders and not homeowners.

Bolster Fannie and Freddie

A late and controversial addition to the new housing law provides temporary authority for the Treasury to lend a financial hand to Fannie Mae and Freddie Mac if the Treasury deems it necessary to help stabilize markets.

Concerns over whether Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) will have enough money to weather future losses in the housing market has sent shares plummeting in recent weeks. Since the beginning of June, Fannie's stock price has dropped 55% and Freddie's plummeted 64%. For the past year, they're both down over 80%.

Fannie and Freddie guarantee the purchase and trade of mortgages and own or back $5.2 trillion in mortgages.

The law includes provisions that let Treasury offer Fannie and Freddie an unlimited line of credit and buy stock in the companies. The provisions expire in 18 months.

Both critics and supporters of the Paulson plan have expressed concern that loaning or investing money in the companies could leave taxpayers with a fat bill to pay.

Treasury Secretary Paulson has said that merely having the powers in place may boost confidence in the two companies enough to preclude the need for Treasury to step in.

The Congressional Budget Office last week estimated the potential cost of a rescue could be $25 billion. CBO said there is probably a better than 50% chance that Treasury would not need to step in. It also said there is a 5% chance that Freddie's and Fannie's losses could cost the government $100 billion.

Real estate firm charged with racial discrimination

The U.S. Department of Justice has filed a lawsuit on behalf of a fair-housing organization, charging a RE/MAX brokerage and an affiliated agent in northern Illinois with housing discrimination.

The lawsuit, filed July 18 in U.S. District Court in the Northern District of Illinois, charges that testing conducted by the National Fair Housing Alliance revealed discrimination based on race and national origin.

Officials at RE/MAX East-West, which is based in Elmhurst, Ill., did not respond to Inman News requests for comment.

The National Fair Housing Alliance conducted an investigation of the sales practices of RE/MAX East-West from June 2004 through February 2005 using undercover "testers" who posed as home buyers. The testers were of different races and origins. The results of this investigation led to an NFHA complaint, U.S. Department of Housing and Urban Development investigation and the federal lawsuit.

The organization has also conducted similar tests at several other brokerage companies (see Inman News article).

John Wassinger, who bought the RE/MAX East-West business in 2006, this week told a local newspaper, the Daily Herald, "If there is anything that is a mantra in this industry, it is that everyone is to be treated fairly and blindly." Racial steering "isn't tolerated," he said.

John DeJohn, the agent who is charged in the Justice Department lawsuit, left RE/MAX East-West and now works for another real estate company in northern Illinois, according to the lawsuit.

DeJohn in September 2004 reportedly steered a Hispanic tester, acting as a home buyer, toward areas that are predominantly African-American and Hispanic, the lawsuit alleges, and told the tester that one of the homes "'might be good for you,' or words to that effect,' " the lawsuit states.

DeJohn allegedly did not show or offer to show the tester any additional homes, and told the tester that she could not afford homes in several predominantly white areas, "even though in some cases the median home value in those areas was within the tester's price range," according to the lawsuit. Also, the lawsuit charges that DeJohn did not make any follow-up phone calls to that tester.

Later that month, a white tester made an appointment to view homes with DeJohn, who allegedly encouraged the tester to "research online to find out 'what the minority population is' of neighborhoods in the Chicago region, or words to that effect."

DeJohn allegedly steered the white tester toward predominantly white areas and away from predominantly African-American and Hispanic areas, the lawsuit states, and showed the white tester nine homes -- seven in predominantly white areas.

He allegedly told the white tester, "'I don't care if you are a bigot. If we go to an area and you don't like it, just let me know. I can't be a bigot but you can be one,' or words to that effect."

And while DeJohn allegedly told the Hispanic tester that one home "might be good for you," he allegedly referred to that home and another home as "dumps" and "repos" when speaking to the white tester. And the lawsuit charges that DeJohn made multiple follow-up calls to the white tester.

NFHA filed a complaint with HUD on Aug. 22, 2005, and amended the complaint on April 7, 2008. HUD officials "determined that reasonable cause exists to believe that illegal discriminatory housing practices had occurred," the lawsuit states, and on June 9 the housing agency issued a charge of discrimination in violation of the Fair Housing Act and later authorized a civil action.

The lawsuit seeks to enjoin the company and its agents and employees from engaging in discrimination on the basis of race and national origin related to home sales, and also seeks monetary damages to NFHA.

Shanna L. Smith, president and CEO of the National Fair Housing Alliance, which is based in Chicago, said in a statement, "We are pleased with HUD's decision to issue a charge ... and we hope that this will send a clear message to the housing industry that real estate agents and companies must be held accountable to the law."

NFHA reported this week that its 12-city investigation turned up an 87 percent rate of alleged racial steering and an almost 20 percent rate of alleged housing denial for African-Americans and Latinos.

Inman News has reported on several other complaints filed by NFHA against real estate companies in metro Atlanta; Detroit; Chicago; Fairhope, Ala.; Westchester, N.Y.; and Long Island. Among the companies named: Coldwell Banker The Condo Store, Coldwell Banker Marietta, RE/MAX Buckhead, Coldwell Banker Joe T. Lane Jonesboro, Detroit Century 21 Town & Country, Coldwell Banker Gold Coast, RE/MAX East-West, Manders & Company Real Estate, Peter J. Riolo Real Estate and Julia Stevens Realty.