This Week's Short Stories

Fannie and Freddie Still Going Strong

All of the news about the government scaling back the activities of Fannie and Freddie isn’t really keeping these agencies from doing big business. These entities have come back from big losses to record profits lately. Of course, “profits” can be misleading when the government is involved, but it seems that things are going better for Fannie and Freddie these days. It could aggravate the gridlock in Congress on how to phase them out.

Investment Opportunity in New Construction

Actually, this is more of a peripheral opportunity unless you have access to building professionals and trades. Some investors have jumped into identifying and buying lots in advance of demand by builders. As the market and prices continue to improve, new construction of single family homes should follow. Owning a great lot in the right neighborhood could make for a nice flip profit.

Be Glad You’re Not Investing In Spain

Foreign property buyers are running into higher than expected taxes in Spain. Buyers of second hand homes pay a tax of up to 10% of the purchase price to the Treasury. There could be an even higher tax if the government determines that the sale price is less than the current recorded property value. What a great way for the government to siphon off some of your profit because you found a great deal!