The Future of the Real Estate Recovery

This morning at 10:15 am EST Treasury Secretary Timothy Geithner outlined the Obama Administration's policy for economic recovery. Regarding the problems facing real estate, I like to boil the solutions down to something easy to understand. Here's the message I got. NO MORE WALKING AWAY. The Fed will do whatever it can to prevent foreclosures and to keep people in their homes. Walking Away from debt has been made too easy over the last 30 years but now the associated problems have become so deep, walking away is no long an option. Consider this... the more owners walk away, the more foreclosures hit the market. The more foreclosures hit the market, the lower the prices drop for the non-foreclosure home. The more prices drop for the non-foreclosure home, the more people feel stuck living in a home that is no longer worth what the owners perceive to be a fair price. This leads to depression and reduced spending because of uncertainty. Yet I am sure about one thing more than ever. Southern Oregon real estate in Rogue Valley communities like Grants Pass, Medford, Rogue River, Ashland, Jacksonville, Cave Junction remain intrinsic values because of their beauty, clean air, and clean water. And remember, they'll be No More Walking Away!

IT'S GREAT TO GO GREEN... BUT WILL IT PENCIL?

Here's what I know about going green in Grants Pass and Southern Oregon. The question on everybody's mind is, will going green pencil? In these uncomfortable days of financial uncertainty most people are focused on reducing their overhead and cutting costs. On top of that, no one seems to be anxious to spend money in any direction, including home improvements. Spending 14 grand for a solar system that puts out 2 thousand watts per hour doesn't sound like a lucrative proposition... or is it? Consider this: if you're selling unused kilowatts back to the power company at wholesale rates, it will take roughly seven years before you've sold $14,000 worth of kilowatts and gotten back investment in a solar system. Hmmm... that doesn't sound too bad. Now add to that the fact that you've gotten rebates from the state of Oregon for some of the money you laid out for the solar panels in the first place. Plus you've gotten substantial federal tax credits that have resulted in cash back to you in tax returns. Well, then, now you've really done quite well. Let's review: seven years in and the system has been paid for by the power company, you've gotten money back from rebates and tax credits, and you're still selling kilowatts to the power company that surface as a lower electicric bill (or none at all!) Now that's what I call lowering your overhead.

Sounds like a no-brainer, doesn't it... except for one thing. Here's the rub. The pain comes when you've got to fork over 14 grand for the system. Ouch. It's what the financial collapse has been all about. Who's saved that kind of money to lay out for a solar system. It's tough to part with any amount of money especially when you're surrounded by uncertainty. All I can say is that I intend to practice what I preach and I'm saving my money to purchase a solar system that will ultimately pay for itself and lower my overhead. And that sounds like it pencils.

Going Green in Southern Oregon Real Estate

So here's me, sitting at the ol' computer, blogging away about something I am passionate about. I'm passionate because I know it's really about survival. It's about survival for Southern Oregon, for the State of Oregon, for the Nation, and for Planet Earth. Am I being over dramatic? Perhaps. But look at it this way. If the planet is truly warming up and the ice caps are melting, how long before the human race as we know it is marginalized into extinction? Not in a hundred years, but possibly in a thousand. Can we afford to take that chance? Not on your life. So we find ourselves at a crossroads that the generations can look back at and say, "Wow! They were in crisis and guys like Dan with his obscure little blog spread the word about the imperative need to Go Green and do everything in their power to reverse Global Warming." I'm some kind'a hero, huh? Not quite, but I am practicing what I preach. My wife, Ginny, and I are doing everything in our power to reduce our personal carbon footprint. We are doing everything in our power to spread the word about green real estate practices, about energy conservation in the home, and about the passive solar home of the future. I will involve and write about those individuals, institutions, politicians, and companies that I believe are with me in support of this journey. And thanks for reading.