Friday, January 28, 2011

Where are Housing Prices Heading?

Article By:  The KCM Crew on January 28, 2011
Courtesy of Keeping Current Matters

 
The National Association of Realtors (NAR) has been reporting great news recently. Last week’s Existing Home Sales Report and yesterday’s Pending Sales Report both showed consecutive months of increases in the number of homes sold. Finally, buyers are jumping off the fence and taking advantage of one of the most opportune times to purchase a home in America’s real estate history. With an increase in demand, price appreciation can’t be far behind, can it?
Actually, the answer is NO! Prices are not determined by demand alone but in the relationship of demand to available supply. The inventory of homes for sale is still too high and about to surge higher. Along with the news of increased demand yesterday, RealtyTrac released their 2010 Year-End Metropolitan Foreclosure Market Report. The report showed that distressed properties across the country are on the rise:
… foreclosure levels remained five to 10  times higher than historic norms in most hard-hit markets, where deep  fault lines of risk remain and could potentially trigger more waves of  foreclosure activity in 2011 and beyond.
The report also explained that the foreclosure epidemic is spreading to more and more of our communities:
… foreclosures became more  widespread in 2010 as high unemployment drove activity up in 72 percent of the  nation’s metro areas — many of which were relatively insulated from the initial  foreclosure tsunami.
What does this mean for prices?
Here are a few quotes from this week.
The closely watched S&P/Case-Shiller report shows that housing prices, compared year-over-year, have declined nationally for six consecutive months. The downward path suggests that housing prices could, by spring, hit their lowest level since April 2009, said David Blitzer, the index committee’s chairman.
A new slide in housing prices has begun in earnest, with averages in major cities across the country falling to their lowest point in many years.
Barclay’s Bank analyst Theresa Chen doesn’t expect a reversal in housing market trends any time soon, since there is no end in sight to the foreclosure crisis.
“We expect softness to persist,” she said, “as home prices continue to face headwinds from the large pipeline of foreclosures entering the market.”
“… we believe that home prices will continue to weaken on a month-over-month basis until spring, and a year-over-year basis through the end of 2011,” the Radar Logic said.

Bottom Line

Prices will continue to soften in the first half of 2011 in most regions of the country. This information should be taken into consideration if you plan on selling your house in the next twelve months.

What the Crystal Ball Says About Rates

Article By:  The KCM Crew on January 27, 2011
Courtesy of Keeping Current Matters



Predicting what will happen with interest rates is risky for a person’s credibility.  Last year at this time, I (and the KCM Crew) believed rates would climb after June and for very logical reasons: the end of the Fed’s purchase of mortgage-backed-securities (MBS) and the end of the Tax Credit. What we didn’t anticipate was the collapse of the Greek economy.  

That being said, I firmly believe that my opinion on the topic has some value. So, here’s my opinion (which assumes the governments of Ireland, Spain and Portugal stay solvent and no other major geo-political event occurs- like a war or terrorist activity).

The Fed and the federal government have publically (sic) stated their desire to get the American Economy back on track.  Their goals:
  • Creating Jobs. They want to put Americans to work.
  • Improving Production in the corporate and manufacturing sectors (which will create jobs and profits)
  • Ratcheting Up Inflation in order to get prices moving upwards (really as a prevention of deflation)
Accomplishing these goals will likely improve the fortune of businesses (by creating higher sales, profits and stock prices).  In turn, the expectation is that these businesses will expand (spending money and creating jobs).  The money spent and jobs created will beget more spending in the private sector which will, in turn, create more sales, profits and jobs for the businesses.  Logical? Yes. Simple to accomplish? No.

Rewind 18 months: the Fed decided to buy massive quantities of mortgage-backed-securities to keep rates low (which encourages businesses to borrow and invest….and to refinance their existing debt to help their bottom lines).  Unfortunately, there was little confidence in the plan and many businesses instead of expanding, actually tightened their belts. You see, CONFIDENCE is a crucial component to any recovery.  There wasn’t enough confidence (look at the November elections as proof).

But in the last few months, Americans seem to have to begun to feel that things can and will improve.  QE2 has encouraged borrowing and expanding.  Jobs are starting to come back slowly. The infusion of $600 billion into the economy from the Fed via their new MBS purchase program is both inflationary and helpful in devaluing the dollar abroad (which allows foreign money to buy more American goods and services for less).  That helps improve sales, profits and jobs for businesses here.  The wheel is beginning to grind its way in the right direction.  At least, there is some confidence in that plan.
How is all this likely to affect mortgage interest rates?
  • Inflation is always…bad for rates
  • More jobs is inflationary…bad for rates
  • A strong stock market…bad for rates
  • A devalued dollar helps companies selling abroad and their stock value…bad for rates
  • Consumer Confidence typically good for stock prices…bad for rates
Conventional wisdom is that, while rates have climbed from the low 4s to about 5% already, 2011 looks to be a volatile year with rates bouncing from 4.75% to 5.5% throughout the year. That’s a significant range and it behooves home buyers to pay attention and strongly consider locking in their rates when they are 5.125% or lower. 

Additionally, home sellers need to recognize that a .75% hike in rates makes a home about 8% more expensive to afford monthly. As we know, buyers don’t buy on price but instead buy on monthly carrying costs. Sellers are going to have to lower their prices by 8% to achieve the same cost for their buyer.

That’s my prediction in an unpredictable world….Let the debates begin.

Distressed Properties Spur Remodeling Rebound

Reprinted from REALTOR® Magazine, January 27, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved.

The U.S. remodeling industry is “poised for growth” and a return to more normal levels, but it won’t be coming from the industry's traditional drivers, according to a report by the Joint Center for Housing Studies (JCHS) at Harvard University. The remodeling industry has faced double-digit declines in activity since its peak in 2007.
The overall aging of homes and home owners eyeing the potential income gains is expected to provide a boost to the remodeling market, but the major drive leading the rebound in the remodeling industry is expected to come from distressed properties, the report says.

Instead of reducing the price on a property, more lender servicers who manage aging REO portfolios are considering remodeling and raising the price, says Dale McPherson who has more than 30 years in the mortgage industry. The servicers are growing tired of watching investors repair and remodel these properties and sell them at a much higher price — now banks want to cash in, too.
Remodeling distressed properties has the potential to cut the cost on losses of the lender servicers as well as help home owners benefit from remodeling margins too.
Kermit Baker, director of the Remodeling Futures Program at JCHS, says that the slumping housing market has caused “lower household mobility” and as such, more home owners will likely now be looking at what home improvements they can make that will offer longer paybacks, such as energy-efficient retrofits.
In the next five years, the focus of remodeling spending will shift from upper-end discretionary projects to replacements and systems upgrades, the report also notes.

Source: “
Remodeling Poised for a Sharp Recovery,” National Mortgage News (Jan. 18, 2011) (login required)

Google to Drop Real Estate Listings

Reprinted from REALTOR® Magazine, January 27, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved.

Google announced that it will drop real estate listings that real estate professionals upload to its classified site Google Base, as well as any for-sale, foreclosure, or rental properties through its search function on Google Maps.

The real estate listings at the site will discontinue by Feb. 10, 2011.

Google officials say they decided to stop featuring the real estate listings because of low usage and the popularity of other property-search tools on real estate Web sites. Google Base also is being replaced by Google Shopping APIs, which will not support real estate listings.

Google says visitors still will be able to be use Google to find real estate information and Web sites and explore neighborhoods through Google Street View.

"This does not come as a surprise to me,” Pete Flint, CEO of property search site Trulia, told Inman News. “Even with Google's huge audience, it shows having listing data is clearly not enough to deliver a good real estate search experience and build audience."

Source: “
Google Drops Real Estate Listings,” Inman News (Jan. 26, 2011)

Friday, January 14, 2011

'Secret' Way to Lower Mortgage Payments

Reprinted from REALTOR® Magazine, January 5, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved. 

Home owners can trim their monthly mortgage payments by “recasting” or “re-amortizing” their loan, without having to refinance and face hefty closing cost fees, experts say.


When recasting, the borrower pays off a lump sum of the loan’s principal and then resets monthly payments at the loan’s original interest rate and terms.


Here’s one scenario: $230,449 is left on a 30-year fixed rate loan for a $300,000 mortgage taken out at 7.93 percent in 1995. The borrower pays $20,000 toward the principal and asks the lender to reamortize their payments over the remaining 15 years of the loan. The monthly payment then drops by $52, from $2,187 to $2,135 per month. ($100,000 toward the lump sum would save $730 a month.)


Since borrowers are not asking for a new loan, they will not have to pay closing costs or submit to another credit check. (Note: “Recasting” is often used in the mortgage industry to refer to interest rate resets on adjustable-rate mortgages. In this case, the interest rate and loan term remain the same. )


“People don’t really know about it, but it’s become more common recently,” Alan Rosenbaum, founder and chief executive of the Guardhill Financial Corporation in New York, said about recasting.


Borrowers who just make extra payments toward the loan’s principal but do not ask the bank to recast the loan will keep monthly payments the same and just shorten the overall time it takes to pay off the loan. Recasting, on the other hand, reduces the principal but then, in turn, lowers monthly payments and interest over the life of the loan.


Some recent buyers may find recasting a good option, particularly when it makes little financial sense to refinance so soon after purchasing a home but are expecting a large sum of money. For example, buyers who expect to receive a tax refund or other substantial money after closing on their property, such as proceeds from the sale of another property or stocks, may want to look into recasting to lower monthly payments, says Edward Ades, the owner of Universal Mortgage in Brooklyn, N.Y.


Source: “A Little-Known Strategy for Cutting Mortgage Payments,” New York Times (Dec. 30, 2010)

Down Payments Under 30% Risky?

Reprinted from REALTOR® Magazine, January 14, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved. 
 
The mortgage industry is divided over how much down payment a borrower should be required to have in order to be considered less risky. Regulators have until April to come up with a down payment requirement as part of the Dodd-Frank financial overhaul legislation.


Wells Fargo & Co., the nation's largest mortgage lender, has asked U.S. regulators to set a new down-payment standard of 30 percent on mortgages. If approved, banks would have to retain 5 percent of the loan if it is securitized for any borrower who came with a down payment below 30 percent in order to meet a risk retention requirement. The new requirement is aimed at preventing lenders from facing big losses in case the loans goes into default. 
 
While banks would still make loans to borrowers with down payments lower than 30 percent, those loans would be more costly to banks because of the risk retention requirement. Analysts say that lenders will likely pass that cost on to borrowers via higher interest rates. 
 
Much of the housing industry opposes the Wells Fargo proposal, saying that a 30 percent down payment standard is too high. 
 
The NATIONAL ASSOCIATION OF REALTORS®, along with the Mortgage Bankers Association and other groups, sent a letter to regulators warning that an “inordinately narrow" mortgage definition "would mean that millions of creditworthy borrowers would be deemed, by regulatory action, to be higher risk borrowers."
 
If the 30 percent requirement does stand, some in the mortgage industry say it will drive more of the lending business from the private sector to the government. The Federal Housing Administration is exempt from the risk retention rules and offers loans with down payments as low as 3.5 percent. 
 
Wells Fargo says it suggested the 30 percent requirement because about half of all mortgages already have that big of down payment. 
 
Source: “Banking Law Hung Up on Down Payments,” The Wall Street Journal (Jan. 13, 2011)

Housing Improvement Will Be Gradual

Reprinted from REALTOR® Magazine, January 13, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved. 
 
The U.S. housing market could rebound this year even as foreclosures continue to dog the industry.


Fannie Mae expects home prices to start to rise in the third quarter, the Chicago Fed projects real residential investment to jump 9.6 percent, and the Mortgage Bankers Association and the National Association of REARLTORS® anticipate higher home sales and construction in every quarter.


Even so, analysts agree that any housing comeback will not be strong enough to have much of an impact on U.S. economic expansion this year.


Source:"Housing's Anemic End to Five-Year Slump Means Little Boost to U.S. Economy,"Bloomberg,(Jan. 12, 2011)

The Finish Rich File Folder System

All the information below comes from David Bach's book, Start Over, Finish Rich.

1. ‘Tax Returns.’ This hanging folder should contain four file folders, one for each of the last three years plus one for the current year. Mark the year on each folder’s tab and put into it all of that year’s important tax documents, such as W-2 forms, 1099s, receipts to support deductions or credits, and (most important) a copy of all the tax returns you filed for that year. Generally speaking, you don’t need to keep tax records for more than three years, although some documents — such as records relating to a home purchase or sale, stock transactions, retirement accounts, and business or rental property — should be kept longer. I keep all my tax documents for at least seven years, but that’s an individual decision.

2. ‘Retirement Accounts. All of your retirement account statements go here. You should create a file for each retirement account that you and your partner have. If you have three IRAs and a 401(k) plan, then you should have a separate file for each. The most important documents to file are the quarterly statements. If you have a company retirement account, you should also definitely keep your sign-up package, because it lists the investment options you have — something you should review at least once a year. You don’t need to keep the prospectuses that the mutual-fund companies mail you each quarter.

3. ‘Social Security.’ Keep your most recent Social Security Benefits Statement in this folder. If you haven’t received a statement in the mail in the last 12 months, request one by going online to www.ssa.gov or telephoning the Social Security Administration toll-free at (800) 772–1213.

4. ‘Investment Accounts.’ This folder is for every statement you receive related to any investments you may have (mutual funds, stocks, bonds, etc.) that are not in a retirement account. Prepare a separate file folder for every brokerage account you maintain.

5. ‘Savings and Checking Accounts.’ Keep your monthly bank statements here, with a separate file folder for each account. Generally speaking, you don’t need to keep bank statements for more than a few months — certainly not more than a year. If you get your statement online, print out a copy and stick it in the file.

6. ‘Household Accounts.’ If you own your own home, this hanging folder should contain the following files:

“House Title,” for documents such as title reports and title insurance policies. (If you can’t find this stuff, call your real estate agent or title company.)

“Home Improvements,” for all your receipts for any home-improvement work you do. (Since home improvement expenses can be added to the cost basis of your house when you sell it, which means a bigger tax deduction for you, you should keep these receipts for as long as you own your house.)

“Home Mortgage,” for all your mortgage statements. (Which you should check regularly, since mortgage companies often don’t credit you properly.) If you’re a renter, this folder should contain your lease, the receipt for your security deposit, and the receipts or canceled checks for your rental payments.

7. ‘Credit Card DEBT.’ Make sure you capitalize the word “DEBT” so it stands out and bothers you every time you see it. I’m not kidding. In my view, credit card debt is the biggest problem facing American consumers today. In Step 3, I will lay out a detailed plan for how you can pay down your debt as responsibly and quickly as possible. Right now simply create the folders — a separate one for each credit account you have — and keep your monthly statements in them.

8. “DOLP™ Worksheet.” DOLP stands for “Dead On Last Payment.” This is the system for paying down debt that I have taught for nearly a decade. I will explain exactly how it works in Step 3. In the meantime, make a copy of the DOLP worksheet on page 44 and put it in this file. (You can also download the worksheet from www.finishrich.com/DOLP.)

9. ‘Credit Scores.’ This folder is for your most recent credit scores, along with the credit reports on which they are based. See Step 4 for details on what these are and how to get copies.

10. ‘Other Liabilities.’ This is where you keep all your records dealing with debts other than your mortgage and your credit card accounts. These would include college loans, car loans, personal loans, etc. Each debt should have its own file folder, which should contain the loan note and your payment records.

11. ‘Insurance.’ Make separate file folders for each of your insurance policies, including health, life, automobile, homeowner’s or renter’s, disability, long-term care, and so on. Each of these folders should contain the appropriate policy and all the related payment records. If you have any employer provided insurance (e.g., medical coverage), include all the brochures and other informational material you’ve received from your company.

12. ‘Family Will or Trust.’ This should hold a copy of your most recent will or living trust, along with the business card of the attorney who drafted it.

13. ‘Children’s Accounts.’ If you have children, create a folder for all statements and other records pertaining to college savings accounts and any other investments you may have made on their behalf.

14. ‘Latte Factor®.’ Here is where you keep your Latte Factor worksheet. For some of you, this may be the most important folder you create.
The Latte Factor® is based on the simple idea that all you need to do to finish rich is to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, bottled water, fast food, cigarettes, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck.
We don't even realize how much we're actually spending on these little purchases. If we did think about it and change our habits just a little, we could actually change our destiny.
So get started today! Identify what your Latte Factor® actually is by tracking your spending for a full day then calculating just how much you could save in a few years. The Latte Factor® Calculator makes it easy. This simple exercise can be life-changing. It adds up, so don't delay...get started today!

Now you are organized financially.
You did it. You now have 14 hanging files (13, if you don’t have kids), organized in a box or a file cabinet that represents your entire financial life. You should already be feeling more empowered and more in control over your finances. In fact, you are. In getting your records organized, you have taken a major step toward getting your financial life back on track.

I’m not exaggerating when I say that this one exercise can have a huge impact on your life. Over the years, I have heard from countless readers who told me that simply setting up this filing system totally changed how they handled their finances. It has helped couples get on the same page and stop fighting about money. It has helped people who never had a plan get a plan. Please trust me and do this. You will feel better and it will only take an hour. So go do it now.

As you create your file folder system, you may find that you don’t have any documents to put in some of the folders. Make them anyway. If you don’t have, say, a will or living trust, the empty folder will remind you every time you open the file box or drawer that you still have “homework” to complete for your “Start Over” plan.
If you are missing documents, use the form below to list what is missing and what you need to do to fill in the gaps.
MISSING INFORMATION • DUE DATE  • COMPLETED
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
Fill in the “Due Date” so you have a specific goal and time frame to meet. Check off “Completed” when you’re done.

Which records should you keep and which should you ditch?
The reason I made the Finish Rich File Folder System so specific is that many of us keep too much information for way too long. (I’m guilty of this myself.) The fact is, except in cases involving fraud, the statute of limitations on income-tax returns is only three years, so the Internal Revenue Service does not expect you to hang on to tax records and receipts for any longer than that. The main exceptions to this are if you’ve underreported your income (in which case you should keep your records for six years) or have claimed a loss from worthless securities (seven years). Obviously, you should keep records documenting the cost basis of your home and all your other taxable investments for as long as you own them. The same goes for the basic documents concerning your retirement accounts and insurance policies, not to mention all loans and mortgages.
But don’t be shy about getting rid of old materials. Here’s a list of items you should consider throwing away (or shredding if the documents contain personal information):


• Outdated warranties
• Outdated instruction manuals
• Outdated wills or trusts (provided you created a new one)
• Canceled insurance policies
• Credit card statements for closed tax years
• Canceled checks for closed tax years
• Old brokerage statements for closed tax years (unless they have cost-basis information you might eventually need)
• Old annual reports from stocks and/or mutual funds
• Old investment newsletters (some people keep these things for years because they paid for them — let them go)

Wednesday, January 5, 2011

3 Questions You Must Answer Before Buying a Home

Article by:  The KCM Crew on January 4, 2011
Courtesy of Keeping Current Matters


If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And most of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought five years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

There are three questions you should ask before purchasing in today’s market: 

1. Why should I buy if house prices are still depreciating?
We believe that in most parts of the country prices will in fact soften in 2011. Price is the major concern for anyone selling a home. When you are buying, COST should be your primary concern however. Your monthly payment (cost) is definitely impacted by the price of the home you purchase. The other major component is the interest rate. Waiting for prices to bottom out while rates are increasing can wind up costing you more over the life of the mortgage (see chart here).
Over the last seven weeks, rates have increased over 1/2 a point going from 4.17 to 4.86. Looking at the attached chart shows this increase. Waiting for prices to bottom out seems to make perfect sense. Yet, at a time when rates are increasing, it might NOT make sense. Make sure you have a mortgage professional help you with this math before making a decision.
In an article last week CNN Money reported:
“You can kiss those record lows goodbye,” said Greg McBride, chief economist for Bankrate.com.
Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau.
“I don’t think we’re going back to a 50-year low anytime soon without an economic collapse,” he said. “Rates will probably never revisit those levels.”

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010.  They ask 100+ housing industry experts to project housing prices through 2015. The most current survey shows that the experts are predicting prices to soften until 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2015.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: You want to buy low and sell high. We may be at the low point regarding the COST of a home. But, this decision should not only be a financial one.
That leads us to our third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:
  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of the space
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason whether you decide to purchase or not.


Bottom Line
The COST of a home will probably remain relatively unchanged even if prices continue to depreciate. Don’t allow money to get in the way of you making the right decision for you and your family. In the long run, the finances will work in your favor anyway.

Could Rising Mortgage Rates Spur Housing Rush?

Reprinted from REALTOR® Magazine, January 3, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved. 

Mortgage rates have been rising ever since November 2010, when lows of 4.42 percent were reported. Bankrate.com recently reported a rise to 5.02 percent in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5 percent mark--many experts say signaling the end to the 4 percent mortgage rate era.

Forecasters predict mortgage rates to hover in the 5-6 percent range in 2011.

Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

The rising rates create an urgency for potential buyers. They’ll have more incentive to buy soon before mortgage rates go any higher.

After all, higher interest rates mean buyers will pay more for their mortgages. Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25 percent to 5 percent, it takes away 9 percent of the purchasing power of buyers.

Lawrence Yun, chief economist of the National Association of REALTORS®, doesn't foresee a moderate hike in mortgage rates as a negative for the industry. Instead, he says the real mortgage challenge is getting lenders to approve creditworthy buyers for a loan.

"It's less about rates than it is about underwriting standards ... If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy," Yun said.

 
Source: “Kiss 4% Mortgage Rates Goodbye,” CNNMoney.com (Dec. 30, 2010)

Cyber Criminals in 2011

Reprinted from REALTOR® Magazine, January 3, 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011. All rights reserved. 

Cybercriminals' Latest Targets: iPhone, Android

Cybercriminals are expected to target Apple products, mobile devices, and social media in the new year, according to the security firm McAfee, which recently released its “2011 Threat Predictions” report.


The platforms and services most at risk are Google’s Android, Apple’s iPhone, Foursquare, Google TV, and the Mac OS X platform, according to the report.


"We've seen significant advancements in device and social network adoption, placing a bulls-eye on the platforms and services users are embracing the most," Vincent Weafer, senior vice president of McAfee Labs, said in a recent public statement. “These platforms and services have become very popular in a short amount of time, and we’re already seeing a significant increase in vulnerabilities, attacks and data loss.”


The following are among some of the platforms and services at risk in 2011, according to McAfee:


Apple’s Mac OS platforms:
Once thought to be fairly immune to threats, Apple products will likely be a focus for cybercriminals in the new year, according to McAfee. McAfee notes that iPads and iPhone usage has increased for business purposes but many of the users do not understand proper security for these devices, which will likely put them at increased risk for data and identity breaches.

Social media sites with URL-shortening services:
“The use of abbreviated URLs on sites like Twitter makes it easy for cybercriminals to mask and direct users to malicious Web sites,” according to the report.

Geolocation social media sites:
For example, sites such as Foursquare and Facebook Places, which reveal the person’s location can easily be used by cybercriminals to track and plot the person’s whereabouts in real-time. 

 
Source: “McAfee Labs Predicts Geolocation, Mobile Devices and Apple Will Top the List of Targets for Emerging Threats in 2011,” McAfee (Dec. 28, 2010)