Sales of previously owned homes in the U.S. unexpectedly rose to a seven-month high in January as lower prices and warm weather brought out more buyers, the National Association of Realtors said today in Washington.

Purchases increased 3 percent last month to an annual rate of 6.46 million, up from a 6.27 million December rate that was higher than previously reported. Sales fell 4.3 percent compared with a year earlier.

     Feb. 27 (Bloomberg) –

Did you know that the fastest growing percentages of homebuyers are single women?

The National Association of Realtors recently profiled all homebuyers and sellers throughout the U.S. In 1995, 70% of homebuyers were married couples compared to 14% single women and 9% single men. In 2006 the percentage for married couples fell to 61%.  The percentage of single women homebuyers increased from 14 to 22%, and single men remained the same at 9%.

Some other interesting statistics to consider:

PNC Financial Services Group conduced a survey with over 1800 Americans with assets over $500,000.   They found that high net worth investors have not made major shifts in their investment portfolios over the past year. *

What does this mean to us? Despite all of the negative news in the media, high net worth investors are staying the course with their investment portfolios.

I just received a copy of a new law passed by the city of Cincinnati that talks about chronic nuisance fines. One of the clauses deals with truant students. If a student that is the child of your tenant is not in school, you, the landlord could be fined. This ordinance is being challenged at the moment. I truly do not understand how a landlord could be responsible for a tenant’s child being in school or violating curfew. I will keep you posted on this as the case goes to court.

I heard another interesting idea last week. You can invest in ATM machines that are put in hotels, grocery stores, or retail operations. I always thought the bank owned these. Apparently not. The profit is the service fee one makes off the each transaction. The downside?  Putting cash into the machine without being robbed. The upside? Cash on the fees.  Another alternative investment for those of you looking for the unique and different.

Congress recently approved several new incentives to improve health savings accounts, which allow account holders with high health insurance deductibles to park 100% of the deductible in a tax-free account until needed for medical expenses. Any unspent money in the account rolls over to the next year.

Annual contributions for 2007 are $2,850 for individual and $5,650 for family coverage. Imagine having another bucket of tax-free money you can use to build your wealth. Want to know more?  Log onto www.theentrustgroup.com to discuss this option with one of our local self-directed retirement specialists.

Did you know that one in nine baby boomers are forecasted to live to 100? Also, did you know that women generally live longer than men?

In order to continue to have the lifestyle we want in our retirement, we must take control of our financial futures today. Investing in your IRA or 401 (k) will help to compound the dollars needed to live the lifestyle you choose for yourself. By investing in your IRA, you are investing in your own future.

We need to put as much money away as we can for as long as we can to make these dollars go further. When you sock money away in an IRA or 401 (k), you get the benefit growing these dollars on a tax-deferred or tax-free basis.

When it comes to saving for retirement, working longer doesn’t mean taking less time to plan. With longer life spans, cuts in corporate pensions, decreasing health benefits, and insecurity over social security, you will need every cent of your nest egg to keep pace with rising costs. What’s more, a serious illness or other emergency could cause a severe financial set back.

Even though I’m a big believer in real estate, a truly self-directed IRA allows you to invest in other assets such as:

o Businesses
o Partnerships
o Loans
o Currencies
o Royalties
o Leases
o Oil and Gas shares
o And more!

Visit The Entrust Group at www.TheEntrustGroup.com and learn about the different investment choices available for your IRA or 401(k).

Finally, try not to touch your retirement savings until required by law. The age for taking required minimum distributions is 70 1/2. Experts agree that you should not borrow from your retirement savings to say start a second career or a new business. It’s difficult to rebuild your savings as you approach retirement age because your money has less time to grow. Plus, you lose tax advantages if you withdraw early.

The internet is changing the way homes are sold. More sellers are taking control and doing more of the traditional real estate agent’s work according to a recent article published in USA Today.

The National Association of Realtors shares the following statistics on how sellers market their property for sale.

85% use a real estate agent. This is down from 90% in 2005
80% use the Internet. This is up from 77% in 2005
63% use a yard sign. This is down from 71%
55% hold open houses. Up from 51%
47% use the Newspaper to advertise. Down from 50%

Notice that the more traditional ways of marketing property have decreased and technology as well as face to face communications are on the rise.

Buyers have become more sophisticated and use the internet for a lot of their research, including comps, market conditions, and appraisals. They are more informed.

Do your own due diligence before you decide how you will market your property. With current market conditions, and uncertainty in the economy, if you decide to market your own property, you must be as knowledgeable as your potential buyer.

What are this year’s contribution limits? See below:

Roth and Traditional IRAs
• 2006 - $4,000 until April 15, 2007 plus $1,000 catch-up if you are age 50 or over
• 2007 - $4,000 plus $1,000 catch-up if you are age 50 or over. (See Internal Revenue Service Publication 590 for more information.)

SEP IRAs
• 2006 - 25% of your wages (or up to 20% of your Schedule C income) up to a maximum of $44,000. Contributions can be made for 2006 up until your tax tax-filing deadline plus extensions. (See Internal Revenue Service Publication 560 for more information.)
• 2007 - 25% of your wages (or up to 20% of your Schedule C income) up to a maximum of $45,000. Contributions can be made for 2007 up until your tax tax-filing deadline plus extensions. (See Internal Revenue Service Publication 560 for more information.)

SIMPLE IRAs
• 2006 - $10,000 for salary deferral plus $2,500 catch-up if you are 50, plus up to 3% of your salary matched by your employer (See Internal Revenue Service Publication 560 for more information.)
• 2007 - $10,500 for salary deferral plus $2,500 catch-up if you are 50, plus up to 3% of your salary matched by your (See Internal Revenue Service Publication 560 for more information.)

Profit Sharing/401(k)s
• 2006 - $15,000 in salary deferral plus catch-up deferral of $5,000 if you are 50 or over plus 25% of your wages (or 20% of your Schedule C income) up to a maximum of $44,000. Salary deferral contributions for the self-employed (in addition to the employer profit sharing contributions) can be made if the tax return has been extended up until your tax-filing deadline for 2006.
• 2007 - $15,500 in salary deferral plus catch-up deferral of $5,000 if you are 50 or over plus 25% of your wages (or 20% of your Schedule C income) up to a maximum of $45,000. Salary deferral contributions for the self-employed (in addition to the employer profit sharing contributions) can be made if the tax return has been extended up until your tax-filing deadline for 2007.

Coverdell ESAs
• $2,000 per year until the child is age 18, unless the child is special needs. (See Internal Revenue Service Publication 970 for more information.)

Health Savings Accounts
• 2006 - $2,700 for individual coverage and $5,450 for family coverage plus $700 catch-up if you are over age 55. (See Internal Revenue Service Publication 969 for more information.)
• 2007 - $2,850 for individual coverage and $5,650 for family coverage plus $800 catch-up if you are over age 55. (See Internal Revenue Service Publication 969 for more information.)

“Housing is becoming unaffordable for the average worker.”

“First time homebuyers send out an SOS.”

“A quarter of young house-hunters are being derailed by too much personal debt.”

“If the current rise in home prices continue, many New Zealanders may never be able to purchase a home and will be life-long renters.”

Do these statements sound familiar? These quotes were seen in many U.S. papers less then 2 years ago. I can’t help thinking that this is déjà vu.

Today’s paper however opened my eyes.

The headline “Government eyes a share market solution as home prices soar” drew my attention.

The government is investigating whether corporate or institutional involvement in rental property could help meet housing needs. Real Estate Investment Trusts (REIT’s) could provide affordable long-term rental housing needs through investor dollars and be a potential solution to help the country cope with the growing demand.

If you’re wondering why I would be interested in this article, first, let’s examine how REIT’s work.

Investors buy shares or units in a REIT. The REIT owns the houses/apartments and rents them out. The fund (REIT) would collect rent from the tenants and distribute its rental income to shareholders as dividends, after deducting expenses for managing and maintaining the properties.

Prices of these shares fluctuate based on current market conditions.

In the U.S., REITs have been a popular investment. They have been unheard in New Zealand. So why am I interested? After being here, I can see where real estate would make a good investment, but I am not interested in managing or maintaining a property for rental from so far away. BUT…. if I can buy into a fund that is just starting up and get in on the ground floor, I think my long term investment could potentially be a winner.