News: Real Estate, Risk, Economics. May 1-2, 2014

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Table of Contents
(Click to sections below.)

1) Scottsdale's Cannabis-Rx buying up real estate for marijuana-related businesses – Phoenix Business Journal

2) 10 Rental Property Tax Write-Offs You'd Be Crazy to Ignore – AllPropertyManagement com

3) Real-estate investing without the headaches – MarketWatch

4) Metro Detroit home prices remain below 2000 level | The Detroit News

5) Cash cut for solar farms that blight countryside: Energy minister set to announce review of subsidies | Mail Online

6) Why Are So Many Boomers Working Longer?

7) Sirens didn't sound because no warning was issued – KTUL.com – Tulsa, Oklahoma – News, Weather & Sports

8) Wichita, Kansas, Thieves Rob Model Home and Take Kitchen Sink : People com

9) Over 1,000 NY, NJ families losing FEMA rental aid – WSJ com

10) Tornado shelters face dilemma with pet lovers

11) Map: 162 Properties Owned By Infamous Racist Donald Sterling

12) Investment Properties Aren't Just for the Uber Wealthy Anymore – Real Estate By the Numbers – Boston com

13) Valley's real estate market remains sluggish – CBS 5 – KPHO

14) BOJ Inflation Confidence Seen Cutting Chance of Stimulus – Bloomberg

15) U.S. economy stalled during the first quarter, but Fed, analysts retain their optimism – The Washington Post

16) Rains too much even for weather-toughened Gulf Coast – CNN com

17) Houston ranked among areas with dirtiest air – Houston Chronicle

18) CBRE Ireland Bi-Monthly Research Report May 2014 – YouTube

19) Sacramento Apartments are Putting Up Surprising Strong Numbers – Apartment Market Dynamics – YouTube

20) Philadelphia's Apartment Sector Struggles to Find Momentum – Apartment Market Dynamics – YouTube

21) Ex-Treasury adviser: no real recovery – growth 'hype' masks crash risk | Nafeez Ahmed | theguardian com

22) Homeownership falls to 19-year low: Here's why

23) Loggers steal valuable walnut trees in Wisconsin : Madisondotcom

24) Self-Directed IRAs and UBTI in SBRE Funds | Fairway America

25) Bank of England warns housing market boom may turn to crash | Business | The Guardian

26) Stink of GDP Spreads to Housing Market – TheStreet

27) Weaker home prices add to China's economic fears | South China Morning Post

28) Survey reveals Calif. snowpack at 18 percent of average | Foothills/Tahoe News – KCRA Home

  1.    Scottsdale's Cannabis-Rx buying up real estate for marijuana-related businesses – Phoenix Business Journal

    Cannabis-Rx Inc., a Scottsdale-based real estate company that is buying real estate for the medical marijuana industry, has paid $3.26 million for properties in California, Illinois and Florida.

    Add your comment.


  2.    10 Rental Property Tax Write-Offs You'd Be Crazy to Ignore – AllPropertyManagement.com

    Rental property tax deductions reduce the amount of income tax you pay on your rental income.

    They're a good thing.

    And because they can save you money, you shouldn't ignore them. In fact, documenting your rental expenses and deductions should be a regular and habitual part of your rental business. If you don't keep current records of your expenses, starting tracking them today so you're not scrambling at tax time to recreate 365 days worth of deductions.
    Here are some of the most important deductions you could benefit from:

    Add your comment.


  3.    Real-estate investing without the headaches – MarketWatch

    Joe had the kind of personality that would accommodate the many problems. Though soft hearted with friends, he gave renters the impression that he had ice water in his veins and would evict his own mother if she didn't pay the rent. And he could roll with the punches. For example, he wasn't particularly bothered when he had to evict one couple, entered the empty house, and found that the carpets were all covered with dog excrement. Not only that, but the renters had removed the kitchen cabinet doors to use as steppingstones around the house to avoid stepping in the mess. The odor from the urine and excrement was so bad that he had to remove the flooring and dry wall throughout the house. To Joe, this was just part of the business, not something to get emotional about.

    That's the right attitude.

    Add your comment.


  4.    Metro Detroit home prices remain below 2000 level | The Detroit News

    The number of new homes built in Southeast Michigan since the Great Recession has been far below the 40-year-average of about 10,000 new housing permits a year, according to Home Builders of Southeast Michigan. New housing permits were down in February and March compared to the same periods a year ago.

    The local real estate market has grappled with dwindling inventory for more than a year. In the four-county Metro Detroit area, there were 12,735 homes and condominiums for sale in March, according to the latest monthly report by RealComp II Ltd. in Farmington Hills. That's 1,865 fewer, or an 11.5 percent drop, from March 2013.

    The result is that Metro Detroit housing sales were down 15 percent last month to 3,693, compared to the same period a year ago, according to RealComp.

    Add your comment.


  5.    Cash cut for solar farms that blight countryside: Energy minister set to announce review of subsidies | Mail Online

    Huge solar farms which blight [blight?] the countryside are to have their funding slashed by the Government, the Daily Mail has learned.

    They want "solar panels on the roofs of supermarkets, schools and businesses, where they do not create a visual blight."

    Rooftops make sense, but is there enough roof space to make up the loss of solar farms?

    Add your comment.


  6.    Why Are So Many Boomers Working Longer?

    Market watchers — or at least those pundits who are required to provide a reason for why the markets go up or down on a given day — love to speculate beforehand on the monthly employment figures, and then react quickly when the Department of Labor releases them. Those pundits, and their audiences, might be better served by looking at longer ranges of data on employment, such as the recently released Labor-force Participation Rates of the Population Ages 55 and Older, 2013, by the Employee Benefit Research Institute.

    Add your comment.


  7.    Sirens didn't sound because no warning was issued – KTUL.com – Tulsa, Oklahoma – News, Weather & Sports

    QUAPAW, Okla. (AP) – Officials say no tornado sirens warned residents in Quapaw of the imminent danger of the storm because a tornado warning was never issued for the county.

    The tornado popped up too quickly, and the siren was blown away.

    Add your comment.


  8.    Wichita, Kansas, Thieves Rob Model Home and Take Kitchen Sink : People.com

    Police say thieves stripped the kitchen of the Clayton Homes unit in south Wichita, taking all the upscale appliances, the wooden cabinets from the walls and, of course, the sink.

    Add your comment.


  9.    Over 1,000 NY, NJ families losing FEMA rental aid – WSJ.com

    Over 1,000 families in New York and New Jersey displaced by Superstorm Sandy are losing their federal rental assistance.

    Add your comment.


  10.    Tornado shelters face dilemma with pet lovers

    Jerry Starr thought he was taking the safe approach when a twister was reported heading toward his suburban neighborhood outside Oklahoma City last May. He grabbed his teenage daughter Dyonna and his dog and drove to the local City Hall, which serves as a public storm shelter.

    But when he arrived, a police officer told him that the only way they could come in was if Tobi, his shih tzu-yorkie mix, stayed outside. No pets allowed. So Starr and Tobi rode out the storm in his car, one of the most dangerous places he could be.

    Add your comment.


  11.    Map: 162 Properties Owned By Infamous Racist Donald Sterling

    As we've written before, and as Bomani Jones reiterated this week, Donald Sterling's worst crimes have to do with his history of housing discrimination, not his feelings about his girlfriend hanging out with black people. With a net worth of $2 billion built largely on real estate, Sterling has had many opportunities to force his racism on the city of Los Angeles.

    Add your comment.


  12.    Investment Properties Aren't Just for the Uber Wealthy Anymore – Real Estate By the Numbers – Boston.com

    … it is important to walk away with the understanding that investment properties are not only for those with deep pockets. With the proper legal protections, and current lending programs being borrower friendly, many people who otherwise wouldn't be able to safely and effectively own rental properties, can.

    Add your comment.


  13.    Valley's real estate market remains sluggish – CBS 5 – KPHO

    SCOTTSDALE, AZ (CBS5) –

    It was supposed to be the year of the great housing market comeback, across the Valley.

    But it hasn't exactly worked out that way.

    Add your comment.


  14.    BOJ Inflation Confidence Seen Cutting Chance of Stimulus – Bloomberg

    The confidence Bank of Japan officials are demonstrating in achieving their inflation target is lowering the chances of additional monetary easing this year even as the economy weakens.

    We are more confident now in saying that the sales-tax increase was a mistake.

    Add your comment.


  15.    U.S. economy stalled during the first quarter, but Fed, analysts retain their optimism – The Washington Post

    The Federal Reserve also expressed confidence in the recovery. In an official statement after a policy-setting meeting in Washington, it said the economy has picked up momentum after having "slowed sharply" during the winter. Officials at the nation's central bank voted unanimously Wednesday to scale back its support for the economy by $10 billion a month.

    "The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions," the Fed said.

    But there are concerns that lackluster first-quarter growth could signal more fundamental weakness in the economy. In particular, the real estate market has softened as rising prices and higher mortgage rates have made homes less affordable. Residential investment fell 5.7 percent over the winter, according to government data. It subtracted nearly two-tenths of a percentage point from growth.

    The Fed said Wednesday that the "recovery in the housing sector remained slow," according to its official statement. The Fed has been buying billions of dollars a month in bonds for the past year and a half in an effort to bring down long-term interest rates and boost the real estate market. The program pushed mortgage rates to historic lows, but they have since risen almost a percentage point over the past year after the Fed began hinting it would start scaling back that effort.

    The housing recovery has stalled due to low wages and still too much private-sector debt among other reasons.

    Add your comment.


  16.    Rains too much even for weather-toughened Gulf Coast – CNN.com

    From building-crushing hurricanes to killer sinkholes, Gulf Coast residents have seen a lot. But even these battle-tested veterans of the weather wars are marveling at torrential rains that washed out bridges and roads, sent chest-high water into homes and forced major military bases to shut down Wednesday.

    As much as 18.9 inches of rain fell over 24 hours in Alabama and Florida, according to the National Weather Service.

    At Pensacola's airport, an estimated 15.55 inches of rain fell on Tuesday — the largest amount to fall in a single calendar day since officials started tracking rainfall in 1880, the National Weather Service said.

    Add your comment.


  17.    Houston ranked among areas with dirtiest air – Houston Chronicle

    The survey found that Los Angeles remains the metropolitan area with the worst ozone pollution, a ranking it has held in all but one of the association's 15 State of the Air reports. Six of the top 10 cities were in California.

    Houston is 6th and Dallas 8th.

    Add your comment.


  18.    CBRE Ireland Bi-Monthly Research Report May 2014 – YouTube

    Marie Hunt, Head of Research, CBRE Ireland discusses the latest bi-monthly analysis of trends in each sector of the Irish commercial property market.

    In this issue Marie reports that following bumper activity being achieved in the Irish commercial property market during the first two months of 2014, March and April have proved equally busy with significant volumes of transactional activity continuing to be recorded in all sectors of the market.

    According to Marie "Following a very busy start to 2014, there are a number of domestic and international investors with sizeable capital to divest who are eagerly awaiting the launch of more property investment opportunities over the coming months, with a particular appetite for retail and industrial investment opportunities. Unlike some other jurisdictions, there is good visibility on the extent of deleveraging that has yet to occur in the Irish market which coupled with improving economic indicators and rental and capital growth prospects is encouraging investors and developers alike".

    Add your comment.


  19.    Sacramento Apartments are Putting Up Surprising Strong Numbers – Apartment Market Dynamics – YouTube

    Sacramento's apartment market emerged as one of the nation's biggest surprise stories in 1st quarter 2014, notching decade highs in occupancy rates and in annual rent growth. But is such a performance sustainable, given some significant headwinds at play?

    Add your comment.


  20.    Philadelphia's Apartment Sector Struggles to Find Momentum – Apartment Market Dynamics – YouTube

    With weak economic tailwinds, the Philadelphia apartment market continues to put up lackluster numbers — with occupancy rates and rent growth levels registering below pre-recession norms. Softness extends even to the urban core, where a new supply wave has pulled down performance.

    Add your comment.


  21.    Ex-Treasury adviser: no real recovery – growth 'hype' masks crash risk | Nafeez Ahmed | Environment | theguardian.com

    James Meadway, a former UK government policy adviser at the Treasury, has criticised Chancellor George Osborne's claim that newly released GDP figures prove "Britain is coming back." He argues that the government's relentless pursuit of stringent austerity and expansion of household debt is reinforcing the risk of a major economic crash.

    Currently a senior economist at the New Economics Foundation (Nef) in London, Meadway argues that the policies driving UK growth are fatally flawed….

    Add your comment.


  22.    Homeownership falls to 19-year low: Here's why

    Why they rent:

    "We should look at smaller price increases therefore as a good thing, as these double-digit gains are just not sustainable and need to be priced more competitively in order to entice that family to buy their first home instead of continuing to rent it," noted analyst Peter Boockvar at the Lindsey Group.

    Add your comment.


  23.    Loggers steal valuable walnut trees in Wisconsin : Madisondotcom

    … loggers cut down 12 to 20 trees on land owned by him and a neighbor. The loggers offered Knudson $1,000 per tree to keep quiet and not report the activity to law enforcement.

    Add your comment.


  24.    Self-Directed IRAs and UBTI in SBRE Funds | Fairway America

    Today I thought I'd focus on another topic that seems to cause a great deal of confusion as well as practical challenges in raising capital for SBRE funds. It is one that I see people continually encounter and struggle with. The issue I am referring to is the acceptance of an investment in your 506 Regulation D fund in the form of self-directed IRA money. There are multiple downstream implications that can be difficult to manage and potentially cause problems for both the fund manager and the investor depending on how a fund is structured. Many managers I meet are not clear on the rules and/or do not know how to optimize their structure in order to be able to accept as much self-directed IRA money as they can while adhering to those rules. While it is certainly not my intent to offer legal advice concerning these issues, I do want to share my understanding of some of the key issues based on my experiences. Please consult with your legal and tax advisors before acting on any of the following ideas.

    Add your comment.


  25.    Bank of England warns housing market boom may turn to crash | Business | The Guardian

    Britain's booming housing market could be heading for a fresh crash, the Bank of England said in its toughest warning yet about the dangers of the return of rapidly rising property prices.

    Sir Jon Cunliffe, Threadneedle Street's deputy governor for financial stability, said it would be dangerous to ignore the momentum apparent across the country and dropped strong hints of new measures to slow down the market in the months ahead.

    On a day when it emerged that one in 15 London homes are now selling for £1m or more, Cunliffe said Britain had a history of booms turning to bust. "This is a movie that has been seen more than once in the UK."

    Add your comment.


  26.    Stink of GDP Spreads to Housing Market – TheStreet

    When you combine seven quarters of largely sluggish U.S. economic growth, and cap it off with that 0.1% stink bomb, all the ingredients are there to stop the nascent real estate recovery in its tracks.

    The 5.9% drop signifies what the MBA calls the market composite index: a measure of mortgage loan application volume, including refinancings and straight-up home purchases. The index is at a 14-year low, which spells trouble for the entire housing market.

    Add your comment.


  27.    Weaker home prices add to China's economic fears | South China Morning Post

    Average home prices in 288 mainland cities tracked by consultancy E-House China posted their first month-on-month decline since July 2012, deepening worries of a sluggish housing market dragging down the world's second-largest economy.

    Another private survey by China Index Academy, the mainland's top real estate data provider and website operator, showed average home prices in 100 cities were still on the rise last month on both month-on-month and year-on-year terms, but at a slower pace.

    Add your comment.


  28.    Survey reveals Calif. snowpack at 18 percent of average | Foothills/Tahoe News – KCRA Home

    With summer approaching state water managers say California's snowpack is at 18 percent of average for the date.

    Add your comment.


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