Our Market

Free fall describes market behavior last week, as we watched one of the biggest declines in market history take place. By the numbers, for the week ended Friday, October 10, 2008, the Dow Jones Industrial Average closed at 8451, down 1874 points, or 18.2%. The Standard & Poor's 500 closed at 899, down 200 points, or 18.2%, and the NASDAQ Composite closed at 1649, down 298 points, or 15.3%.As we have noted before, a substantial part of the problem in the US is debt. Congress, in its wisdom, provides deductibility of interest paid, and taxes interest earned. Two simple changes, non-deductibility of interest paid, and no taxes on interest, dividends, and cap gains, would make a big difference. The challenge is that would put some control back in the hands of voters, and loosen the bonds that tie the voters to those elected officials and their friends gorging at the government trough.Retailers reported soft sales, and 71% of retailers missed their earnings targets. IBM posted a 20% gain in quarterly earnings, and reaffirmed its earnings forecast. GM is trading at about $4.65. The last time that happened, the average car was $3000, gas was 20 cents a gallon, and your average home cost $16,000.Most of us have been attempting to sort the world out, and figure out what is going on. We have a strange election year, housing and construction is quiet, and banks appear to be out of money.In terms of lack of funds, this in my opinion is simply years of too many households, companies, and governments financing their futures with debt. The government has no place nationalizing financial institutions, yet it appears from the response of most Americans that we prefer security to freedom.On the housing front, real estate is moving through a traditional cycle. The cycle is made more difficult due to the lack of liquidity. This cycle will turn, and the survivors will be stronger for it.

Johns Creek/Alpharetta Roads

October 16, 2008JOHNS CREEK - Several road improvement projects in the city are about to get underway in the next few weeks and at the start of the new year.Intersection improvements will begin soon at Old Alabama and Haynes Bridge roads, according to Ken Hildebrandt, public works director for the city.He also said at the Oct. 6 City Council work session that striping improvements will be made on Abbotts Bridge at Boles Road and Medlock Bridge at Parsons Road.The traffic signal installation on McGinnis Ferry Road at Seven Oaks Parkway will be up and functional in November, he said.Six sidewalk construction projects along Old Alabama Road (three projects total), Taylor Road and Findley Road will save the city $48,000, since the project bids came in under budget.Hildebrandt said the $48,000 will be combined with money that City Council already approved for sidewalk construction projects; the next phase will begin in the spring.Drivers may feel safer knowing guardrails will be repaired in 12 locations around the city. However, the guardrail replacement projects does not include new guardrails, only existing ones around Johns Creek.Hildebrandt said the Buice Road full reformation project will begin soon and construction on the Johns Creek Greenway will begin in the spring.

10 Undeniable Truths about Real Estate

1. People have to have a place to live. -- It's basic but it speaks volumes
about the real estate profession. Today there are 4.78 million people in the
metro Atlanta area; it's predicted there will be over 8 million by 2025.
That's a lot of people coming in who will need a place to live.

2. Well-selected residential real estate will always go up in value. --
According to the most recent report (2nd quarter, 2008) from the Office of
Federal Housing Enterprise Oversight (www.OFHEO.gov
), home prices/values in Georgia continue to rise. There has not been a
12-month period in which home values have declined in Georgia. Click here
for that report.

3. All of us face challenges in our lives at one time or another. -- A
challenging market makes you appreciate the good times. It's as simple as
that.

4. Interest rates go up and interest rates go down, but you can always
refinance when the money is cheap. -- We are in a temporary situation in
which it's hard to find money for non-owner occupied properties and in which
the public's perception is that interest rates are high. But they will still
buy.

5. The greatest expense you will have in your lifetime, without a doubt, is
taxes. -- The level of taxation we experience in this country is remarkable.
Real estate is an investment that allows you to reach financial freedom and
reduce your tax burden.

6. The tax benefits of real estate are, indeed, too good to be true. But
they are true. -- We need to constantly tout to our customers the exclusion
from taxation of gain on a primary residence as the number 1 reason to own a
home.

7. Inflation is our friend. -- Sounds crazy, but controlled inflation can be
helpful in growing our economy.

8. You can retire comfortably on as few as 8 - 10 rental houses. -- Eight to
ten rental properties, paid off, can be a substantial retirement income.

9. Investing in real estate is simple but it's not easy. -- Seek the advice
of those who have 'been there, done that' but don't be afraid to jump right
in.

10. In the words of John McCain [and this is coming from John Adams,
lifelong Democrat!], 'Our economy is fundamentally sound.' -- We are in a
financial crisis, not an ecomonic crisis. Some of the media is comparing our
current ecomony to the Depression; however, the unemployment rate during the
Depression was over 25%, whereas our current national unemployment rate is
around 6%. Also, compare our GDP to that of the Depression and they are
nowhere near the same. We will overcome the current financial crisis and
move on with a healthy economy.

North Georgia Winery's

The North Georgia Mountains are filled with vineyards and quiet bed and breakfast inns .
http://www.persimmoncreekwine.com/ Persimmon Creek Winery is situated on over 100 acres and located near Lake Bruton.
http://www.montaluce.com/ Located minutes from Dahlonega, Montaluce has not yet produced a vintage. However, you will not be disappointed with the wines served and the activities available.
http://www.wolfmountainvineyards.com/index.htm Also located close to Dahlonega, Wolf Mountain Vineyards produces award winning wines.
After your day at the vineyards, relax at one of the following bed and breakfast inns:
http://www.smithhouse.com/
http://www.mountainlaurelcreek.com/
http://www.barninn.com/

Mortgage Lender

Despite what we are hearing on the news, the internet, and in the papers…..
Greater Atlanta Financial Services (owned by Wells Fargo) is still making loans to qualified borrowers!
Credit guidelines have certainly tightened, but not quite to the extent we are hearing. If your client has good credit, at least 3.5% down (which of course can be a family gift on FHA), and is buying within their means, then we can make the loan!!! We may ask for more documentation than in the past, and have an extra level of underwriting to go through, but the loan will close!
So the "credit freeze" is more of a "chill" … let's get the word out!

30 yr fixed, conventional: 5.875%
30 yr fixed, FHA: 6.00%

City of Alpharetta

It has come to our attention that some City of Alpharetta 2008 property tax bills were mailed with an incorrect due date. These bills reflect a due date of September 25, 2008. Please note that the correct due date for your 2008 property tax bill is December 1, 2008. This error occurred at the printer and does not reflect inaccuracies in property tax records. If you received a property tax bill indicating the incorrect payment due date, we do apologize for the confusion and inconvenience that this error may have caused.Please call 678-297-6060 or email us at taxes@alpharetta.ga.us if you have any questions regarding your tax bill.