Real Estate: building, selling, buying, investing

For every $100 spout on a house in 1950 the investment rose slightly through 2002, then soared to about $192 in 2006, adjusting for inflation. Then confidence in dried up, and the bust began. Rick Wallick moved into a new, three-bedroom $200,000 home in Maricopa, Ariz., in October 2005. Today, the well-informed in is worth $80,000.

The disabled software engineer stopped making mortgage payments this month. His $70,000 down payment is now trashy. His dream house will be foreclosed on next year.

“We’re so far underwater it’s not funny,” says Wallick, 57, who had to revenue to his original home in Oregon to care for a sick family member and tend to his own medical problems.

Wallick, one of the hardest-hit victims in one of the states hit hardest by the houses crisis, lost 60 percent of his home’s value in three years.

His story is an extreme sample, but home values have fallen so sharply since hitting a historic peak in the spring of 2006 that many Americans are wondering how much more prices can settle. As painful as the decline has been, history suggests home values still may have a long way to drop and may take decades to return to the heights of 2 1/2 years ago.

“We will never see these prices again in our lifetime, when you rearrange for inflation,” says Peter Schiff, president of investment firm Euro Pacific Cap of Darien, Conn. “These were lifetime peaks.”

The boom in home prices — fueled by heavily leveraged loans built on low or even no down payments — made it light to forget that housing values had been remarkably stable for a half-century after World War II, rising at roughly the same clip as income and inflation. Prices soared in most of the country — especially in Arizona, California, Florida and Nevada and metro areas of Washington, D.C., and New York — during a abbreviated period of easy lending, especially from 2002 to 2006. That era is now over.

So far, home values nationally have tumbled an ordinary of 19 percent from their peak. As bad as that is, prices would need to fall as least 17 percent more to reach their traditional relationship to household gains, according to a USA TODAY analysis of home prices since 1950. In that scenario, a $300,000 house in 2006 could be good about $200,000 when real estate prices hit bottom.

The price plunge has wiped out trillions of dollars in stingingly equity and caused the worst financial crisis since the Great Depression. Susan Wachter, professor of sincere estate at the University of Pennsylvania, fears that foreclosures and tight credit could send home prices falling to the full stop that millions of families and thousands of banks are thrust into insolvency.

“Homes are different than other goods and services,” she says. “The fragility of our banking system is tied to the value of homes.”

Bailiwick values have fallen before — during the Great Depression and in Texas after a 1980s oil boom, for example — but those drops were a reply to other economic forces. This time, the housing price collapse is the cause of the nation’s broad economic troubles, not at most an effect.

“If we have another 20 percent decline in prices, we’ll need another bailout of banks similar to what we at most did,” Wachter says.

Other economists see a brighter picture in the long term. Wachovia economist Adam York expects cosy values to keep falling until 2010 but is optimistic they will recover.

“The one saving grace is the population is growing by 3 million people a year,” he says. “They neediness to live somewhere. That means more roofs.”

50 years of steady values

Until recently, homes were unwavering, unspectacular investments, not get-rich-quick schemes.

Nationally, the typical existing home was value roughly the same in 2000 as it was in 1950, after adjusting for inflation, according to Yale University economist Robert Shiller.

Newly built homes in general were bigger and more expensive than older houses. As time passed, that meant Americans lived in larger, more valuable homes comprehensive. But a house, once constructed, grew slowly in value. California in the 1970s, Texas in the 1980s and Florida on-and-off for a century were awesome exceptions to the rule.

Despite only modest increases in value, homes were smart investments. Owners lived in a company, then got their money back when they sold. That’s a better deal than renting. Borrowers got tax breaks, too, and built equity that could be leveraged into bigger houses as their incomes grew.

From 2002 to 2006, houses went from being a tortoise to a hare in the investment superb. Home sale profits and relaxed lending standards such as lower down payment requirements and adjustable-judge mortgages (ARMs) made it possible for buyers of all income levels to pay more for houses.

When the housing bubble began to deflate in 2006, biography had a sobering lesson to teach. Home values had closely tracked three common-sense measures for many years:

Gains: Home values floated at about three times average household income from 1950 to 2000. In 2006, the common household income was $66,500. Under the traditional model, home prices should have been about $200,000. Instead, the typical available sold for $301,000.

Rent: Homes traditionally have sold for about 20 times what it would cost to rent them for a year. In 2006, houses were selling for 32 times annual split.

Appreciation: Existing homes grew in value by less than 0.5 percent per year, after adjusting for inflation, from 1950 to 2000. From 2000 to 2006, domestic prices rose at an average annualized rate of 8.2 percent above inflation and peaked with a 12.3 percent rail in 2005. Housing prices began to fall in the second quarter of 2006.

Inflation could help homes recapture their old prices, if not their value. But when inflation is factored in, residence prices might not return to their 2006 peak for many years. Housing prices are meaningless if you don’t adjust for inflation, says Schiff, the investment forewoman.

He points out that gold peaked in 1980 at $850 an ounce in response to inflation and the Iranian pawn crisis. It never recovered. Today, it sells for about $750 an ounce and would have to top $2,000 an ounce when adjusted for inflation to meet its value in 1980.

“That’s the nature of bubbles,” Schiff says. “The price never comes back.”

Magniloquent leverage’s end

An extreme relaxation of lending standards inflated the housing bubble.

“Tawdry underwriting on mortgages” is the primary cause of the housing crisis, says York, the Wachovia economist. “People got caught off-picket by how bad it was.”

Millions of home buyers — poor, rich and middle class — were approved to buy homes at prices that had been out-of-reach only just a few years earlier. Lenders offered low introductory “teaser” rates on adjustable rate mortgages and approved borrowers based on artificially low mortgage payments, not the higher ones that took produce later.

What else changed:

Optional payments on principal — In 2005, 29 percent of new mortgages allowed borrowers to pay interest only — not capital funds — or pay less than the interest due and add the cost to the principal. That was up from 1 percent in 2001, according to Credit Suisse, an investment bank.

No verification of profits — Half of mortgages generated in 2006 required no or minimal documentation of household income, reports Dependability Suisse.

Tiny down payments — In 1989, the average down payment for first-time home buyers was 10 percent, reports the Nationalistic Association of Realtors. In 2007, it was 2 percent.

Low down payments and ARMs gave homeowners enormous monetary leverage to pay high home prices. Leverage boosts buying power through debt, the same way a 100-hammer woman uses a lever to jack up a 3,000-pound car.

Consider a couple with $20,000 scratch. In 2006, they easily could get a 5 percent down mortgage to buy a $400,000 house. Today, a 10 percent down payment would limit the combine to a $200,000 house.

“Leverage matters a lot when you buy a house,” says University of Wisconsin economist Morris Davis, an dab hand on housing prices and rents. “We’re not going to go back to the days of only 20 percent (down payment) mortgages, but the days of putting nothing down are hanker gone.”

Easy access to borrowed money reset all housing prices, even those paid by vigilant borrowers. People of all income classes moved up a notch, Census Bureau housing data show.

The trafficking of new homes costing $750,000 or more quadrupled from 2002 to 2006. The construction of inexpensive homes costing $125,000 or less strike down by two-thirds. The biggest boom was in the middle. Homes costing $200,000 to $300,000 became affordable to millions of families.

The failed titans of bailiwick lending — Countrywide Financial, IndyMac Bank and Washington Mutual — specialized in lofty-risk, highly leveraged loans.

Lessons from the Depression

The Great Depression of the 1930s was preceded by a truthful estate bubble, also fueled by loose lending standards and shrinking down payment requirements. Those real chattels problems — and solutions — echo today’s.

Florida real estate was the epicenter of risks in the mid-1920s. Developers — including the famous scam artist Charles Ponzi — ran up prices by selling to borrowers who put as scant as 10 percent down. Those were shockingly risky loans at a time when the standard mortgage lasted five years and required a 50 percent down payment.

The touchy loans went bad first, but it was the spread of credit problems to the supposedly safe loans — five years and 50 percent down — that caused the cover market to collapse.

The five-year loans required no payments to reduce principal. Homeowners expected to refinance mortgages when the loans expired, mainly with the same lender. The stock market crash led to a “liquidity crisis” — no money to borrow — that dried up mortgage refinancing.

Millions of families extinct their homes to foreclosure. Falling prices on nearly everything — homes, farm crops, wages — made consumers wary to buy and banks afraid to lend.

As part of the New Deal, the government took control of millions of loans and restructured them into something new: the modern mortgage, with 20 percent down and manager that is repaid over the life of the loan. The government extended the mortgages to 15 years, then 25 and finally 30.

When Mankind War II ended in 1945 and the Baby Boom began the following year, the 30-year, fixed-upbraid mortgage became a cornerstone of society and led to unprecedented levels of homeownership.

Lower prices chill work

This resilient home finance system should recover in a few years, some analysts say.

National Association of Realtors chief economist Lawrence Yun predicts institution prices will keep falling in 2009 but could return to their 2006 peak in three years, not counting inflation.

He says the froth largely was confined to four states — California, Nevada, Florida and Arizona. “People who bought at the zenith in those states will need time for prices to recover, even up to five years,” he says. Yun says people who buy now “have much less gamble of price declines and a great possibility of price gains.”

The danger of rapidly falling qualified in prices is that — similar to the Depression — potential buyers and lenders will stay away, fueling even sharper bonus declines.

During the housing boom, buyers expected prices to rise, so they were quick to buy, borrow and pay a goad. As prices drop, home buyers wait for better deals. says economist Dean Baker of the fair Center for Economic Policy Research in Washington, D.C.

Lenders want bigger down payments to conserve against the falling value of collateral. Homeowners lose equity, so they can’t buy other houses. “Price declines can be a self-reinforcing approach,” Wachter says.

An out-of-control price collapse would have dire consequences, Baker says. Even the most traditional banks would find themselves carrying portfolios of toxic mortgage loans.

If housing prices don’t stabilize at unwritten levels, financial troubles could spread everywhere — to credit cards, car loans and commercial mortgages, Baker says. “The waves of bad difficulties will just keep coming,” he says.

Baker and Wachter want the U.S. government to take aggressive steps to eschew homeowners, not just financial institutions. They support expanding programs that restructure troubled mortgages to hinder a flood of foreclosed homes from coming on the market and driving prices below their traditional level.

Rick Wallick is an specimen of how even cautious borrowers can be hurt by a price collapse. He made a 35 percent down payment on his house and got a 15-year, unblinking-rate mortgage at 5.75 percent.

Arizona’s real estate mess wiped him out anyway. Now that he’s in Oregon, he’s renting out his Arizona legislative body at a loss and can’t afford to keep two homes.

Wallick’s Arizona house is surrounded by countless foreclosed homes and empty lots. He told his mortgage fellowship that his December payment will be his last. “It may ruin my credit rating, but I can still buy food,” he says.

Shelley McComb employed a no-money-down, interest-only ARM to pay $199,000 in December 2006 for a new three-bedroom home near Birmingham, Ala. The house’s value in a word rose to $225,000, according to its tax assessment.

Now, she needs to move to Atlanta where her husband got a promotion. The McCombs put their serene up for sale in March. After getting no offers, they dropped their price to $179,000. They’d settle for $160,000.

Shelley McComb, 30, who manages a doggie day worry center, says, “I wish we’d rented.”
Source

As the recession devastates the banking, brokerage, retail and automobile industries, landlords and commercial real estate brokers in lower Fairfield County ponder when and if the office market will be the next victim.

The region could be vulnerable because financial service companies rent much of the office space in Greenwich and Stamford. Greenwich has been called the nation’s unofficial hedge fund capital.

“We are still in a very good market. However, a lot of our clients are financial services companies,” said Jim Fagan, senior managing director of the Westchester County, N.Y., and Connecticut operations of New York City-based Cushman & Wakefield Inc. commercial real estate. “They include everything from hedge funds to reinsurance companies to investment banks, not to mention advertising agencies and other professional services companies.”

Those former mainstays in the office market will be shrinking, he said.

“As tenants try to lower their fixed costs, they are slimming down their commercial real estate exposure, where it is practical and pragmatic,” Fagan said. “The market is going through an adjustment. While it was white hot in July of 2007. It certainly is less than that now.”

John Hannigan, principal of Choyce Peterson commercial real estate in Stamford, said, “The quantity of tenants looking to grow has decreased precipitously.”

Reported office vacancies are not really bad - yet.

In the third quarter, 17 percent of the 14.5 million square feet of office space in Stamford was available for lease or sublease, up slightly from 16.4 percent at the same time last year, according to an average taken from five real estate firms. Available space are locations that are empty or slated to become vacant soon.

The numbers do not include large, single-occupant buildings such as the main UBS AG investment bank and trading floor in downtown Stamford.

But vacancy reports might not tell the whole story, said Jeff Gage, executive managing director at the Stamford office of Chicago-based Jones Lang LaSalle commercial real estate. Some companies have space they are not using but will not admit it unless a broker approached them about subleasing, Gage said.

Sublease space, that which is leased but currently unused, is rising in Fairfield County, he said.

“We are going to see vacancy rates going up to 25 percent or higher (countywide),” Gage said. “My guess is that 40 percent of that will be sublease space.”

The big subleases include 112,000 square feet that UBS put on the market at 201 Tresser Blvd. in Stamford at Purdue Pharma’s headquarters. Others in the city are 50,000 square feet from Legg Mason at First Stamford Place and 120,000 square feet at 290 Harbor Drive.

Greenwich has smaller office vacancies, but its 4.8 million square feet of office space depends largely on financial services, hedge funds and private equity firms. About 9.3 percent of the town’s office space was available in the third quarter, which was unchanged from the same time last year.

“Greenwich and Stamford are not immune from the downsizing and reorganization from a new model of doing business,” said John Goodkind, managing principal at the Greenwich office of New York City-based Newmark Knight Frank commercial real estate. “The days of abundance are gone.”

“Large users are unlikely to make decisions on space unless they have to,” he said, referring to lease expirations.

On the positive side, Goodkind said many people who had worked for hedge funds, financial institutions and banks will be looking for office space in which to start their own companies.

“We have already seen significant numbers of new companies looking for smaller spaces,” he said. “That will be the mode for the next 12 to 18 months.”

But Gerald Celente, a trends forecaster known for gloomy predictions, said the downturn in the retail sector will affect office space because fewer customers will exist for service firms such as ad agencies.

“In 2009, the focus will broaden to include a range of calamities that will leave no sector unscathed,” Celente said in a report issued by his Rhinebeck, N.Y.-based Trends Research Institute. “Next in line is retail, which accounts for some 70 percent of consumer spending, 26 percent of which is holiday sales.”

“Add to the (retail) empties the commercial space vacated by defunct financial firms and an array of troubled businesses from restaurants to architectural firms, to high-tech operations, to offset printers, etc.,” the report said. “The inescapable result (that we predicted over a year ago and is only now being discussed in the business media) is a commercial real estate bust that will be costlier, wreak greater havoc and prove more intractable than the residential market decline.”

Local landords, by contrast, are more optimistic.

“We have been here before (in a recession), and we will get through it,” said Jo Ann McGrath, director of leasing for the Merritt 7 Corporate Park in Norwalk. “We just have to stay positive.”

She said the 1.4 million square feet of office space in Merritt 7’s six buildings is 95 percent occupied.

A 51,000 square feet sublease might occur in the complex’s 301 Merritt 7 building. Applied Biosystems is moving out of 301 Merritt 7 in July because it merged with Invitrogen Corp.

Applied Biosystems’s lease expires in 2011, and it has an option to sublet the space, McGrath said.

Margaret Carlson, director of leasing for New York City-based RFR Realty’s seven office buildings in downtown Stamford, said the market is slowing, but not to a crisis stage.

“We are still continuing to sign deals, and we are starting to see concessions for tenants creep in,” Carlson said. “Velocity is slowing down, but we remain optimistic. There are a lot of deals out in the marketplace, and we do not have a lot of sublease space in our portfolio.”

RFR’s Stamford buildings are 90 percent leased, she said.

Another landlord representative, Jeff Newman of W&M Properties, said the recession offers a chance to recruit new tenants. W&M manages First Stamford Place and Metro Center office complexes in Stamford and the MerrittView office building in Norwalk.

“We are well-positioned to ride out a down market,” Newman said. “We always have more than enough cash flow to cover debt service and operating needs.”

Gage of Jones Lang LaSalle predicted rents will drop 20 percent to 30 percent during the recession, which offers local companies a chance to move into better buildings.

In March, Stamford-based Choyce Peterson began telling its clients to pursue renovation subsidies and lower rent from landlords.

The average asking rent for Class A office space in downtown Stamford is $48 per square foot per year, according to Cushman & Wakefield.

“We have been out there ahead of this (recession) news and have been meeting with many area companies to help them navigate these tough economic times, with regard to their office space,” said Hannigan of Choyce Peterson.

“The smart landlord are the ones who will lead the market in (lower) pricing,” Gage said. “If you follow the market, you are already too late.”

- Staff Writer Peter Healy can be reached at peter.healy@scni.com or at 964-227
Read article source - http://web-best.info/2008/12/for-rent-is-office-space-the-final-frontier-in-financial-crisis/

Ann Brenoff, Los Angeles Times
Sunday, December 7, 2008

(12-07) 04:00 PST Los Angeles — Leonardo DiCaprio, who in a sort of passing of the teen-idol baton sat courtside next to “High School Musical” star Zac Efron at the Los Angeles Lakers game two weeks ago, has listed one of his Malibu properties for sale at $8,999,000. What’s next? Will the mini-me Efron buy the house of the man whose career he says he wants to emulate? Unlikely, but heck, they were even photographed folding their hands the same way.

DiCaprio, who turned 34 last month, has listed a contemporary home that sits on the bluffs above the Pacific. A stairway leads to the private beach cove below. The main house has two bedrooms and two bathrooms in 2,374 square feet. The master bathroom has marble fixtures and a steam shower. A separate guesthouse has two one-bedroom suites. There is a four-car garage and a large grassy area, and - no surprise to DiCaprio followers - the property is private.

DiCaprio, who captured the public’s attention playing Jack Dawson in “Titanic” (1997), also starred in “Romeo & Juliet” (1996), “Catch Me if You Can” (2002), “Gangs of New York” (2002) and “Blood Diamond” (2006). He stars in “Body of Lies” (2008) and the upcoming holiday release of “Revolutionary Road,” which again teams him with Kate Winslet, his “Titanic” co-star. It is already being called an Oscar contender.
Source

Marbella property company La Costa Property Solutions now undergoing an audit in order to comply with the new Spanish property law in Andalucia - Decreto 218/2005, which is now being enforced by the Junta de Andalucia in order to protect consumers.

Marbella, Spain (PRWEB) December 9, 2008 — In order to protect the rights of their property buyers and vendors on the Costa del Sol, real estate company and Spanish Property specialists La Costa Property Solutions recently announced their intent to fully comply with the new law for real estate agents and developers selling or renting properties on the Costa del Sol.

“It’s important to note that if people buy or rent directly with property owners, they are not protected by the Decreto. This is why it is better to use a real estate agency that is compliant with Decreto 218″ says Justin Thompson of La Costa.

The Decreto 218/2005 is a law that has been in existence for over 2 years and the Junta de Andalucia is now enforcing it strongly, sending inspectors to make sure agents and developers are complying with the law and handing out fines if this is not the case.

All agencies must have a Decreto 218 Compliance notice on display in their office and failure to comply with this can result in fines ranging from up to €5,000 for minor offences to €400,000 for more serious offences.

“The cost to a small agency like ours to implement the Decreto guidelines is extremely high both in time and effort, but we believe it is the only way forward. We strongly feel that initiatives and laws such as this can only help to improve people’s perceptions about buying property in Marbella and the Costa del Sol and will ultimately help to diffuse some of the negative press the area has experienced over the past couple of years” says Maximo Alvarez, MD Of La Costa

La Costa Property Solutions are an established and experienced full services real estate company based in El Rosario, Marbella and specialize in property sales, holiday rentals, property management and long term rentals on the Costa del Sol.
Source

Dec 7 2008 by David Williamson, Wales On Sunday

The Government and the Bank of England are trying to ride to the rescue of the housing market. But will slashed interest rates and a new mortgage support plan do enough to prevent misery for thousands of Welsh families?

QI’m worried about losing my job and then losing my home. Will the Homeowner Mortgage Support Scheme help me out?

AThe Government clearly expects a rise in unemployment and is determined to prevent a rush of repossessions.

If you experience a sudden fall in your income you may well be able to defer some of your interest payments on your mortgage for up to two years.

These will be added to your outstanding mortgage debt and have to be paid off when your finances improve.

QHow do I know if I qualify?

AThe precise details are still being hammered out. However, it is aimed at people who would not qualify for other Government help, such as households where one earner is made redundant but the other continues working, or where a homeowner loses only part of their income through reduced shifts.

QI took out a big mortgage for the family home. Will I be covered?

AProbably. The scheme will cover mortgages up to £400,000.

QWhich lenders are taking part in the scheme?

AHalifax Bank of Scotland, Nationwide, Abbey, Lloyds TSB, Northern Rock, Barclays, Royal Bank of Scotland and HSBC have all signed up – they represent 70% of the market. Monmouthshire Building Society and Principality are both waiting to see the full details of the scheme.

QI’m already in trouble and need help. When does the scheme begin?

AIt should be up and running early next month.

QHang on a moment! How much are taxpayers having to fork out to help people with mortgages they can’t afford?

AThe Government has guaranteed that lenders in banks and building societies will not lose money if borrowers are later unable to repay the debt.

QSo hard-working people are footing the bill? This sounds like another bail-out.

AIt has not been said how much the scheme will cost but it is estimated the Government will take on around £1bn of liabilities.

QWhat other help is there for those of us who are struggling with our mortgages?

AThere is the £200m Mortgage Rescue Scheme. Homeowners can sell some or all of their home to a social landlord and rent it back again.

Plus, the Department for Work and Pensions is reforming its Income Support for Mortgage Interest initiative so benefit kicks in after just 13 weeks and covers interest repayments on mortgages of up to £200,000.

QIs the Welsh Assembly Government doing anything?

AYes. There are grants for housing associations to buy a share of your mortgage or buy your property outright and then rent it back to you.

QDoes this scheme work?

AIn 2007-08, the Assembly Government provided £850,000 to help 15 households to remain in their homes. A further £5m was provided in June.

QIt’s so confusing and I’m desperately worried. Who can I turn to?

AShelter Cymru, National Debtline and Citizens Advice Bureau will all be able to offer expert advice.

Graeme Yorston, chief operating officer at Principality, said: “Repossession is always a last resort and we urge borrowers to get in touch with their lender or seek free and independent financial advice as soon as they begin to experience difficulties with their repayments. At Principality we will work hard to agree an effective, long-term solution for borrowers who are struggling financially.”

He added: “We have always taken a prudent and sustainable approach to lending, based on an affordability model. We do not lend money against the asset, we lend on the basis that the borrower can afford the loan.

“Our focus now is to help those customers who can’t keep up their repayments due to a change in circumstances, such as loss of income, as we enter the recession.”

QThe Bank of England has cut interest rates from 3% to 2%. So, does this mean I’ll be paying less for my mortgage?

AThat’s what the Government wants to happen, but the banks will have to play ball.

Bankers only passed on the full 1.5% cut to customers last month after coming under extreme pressure.

QI have a fixed-rate mortgage – will I see a reduction?

AAlas, no. People on fixed-rate mortgages were protected from interest rate rises, but the flip-side is they don’t see any benefit from cuts.

But as John Heron of Paragon Mortgages says: “I’m sure a number of those that took out a long-term fixed-rate at the start of the quarter are regretting the decision following the recent Bank of England Base Rate cut, but at least they will know exactly what their monthly mortgage payment will be for the chosen period. There are advantages and disadvantages to long-term fixed-rate deals and borrowers need to be comfortable with the length of time that they are signing up for.”

QBut if I have a tracker mortgage, surely I’ll get the full cut?

ACheck the small print. Some tracker deals have a floor below which the rate won’t sink.

Many bankers never expected to see rates like these in modern times. To put it in perspective, it was 1951 and King George VI was on the throne the last time rates were this low.

Some pundits believe a zero rate is a real possibility.

QBut the Government now owns stakes in so many high street banks! Surely Gordon Brown can crack a whip and make the bankers jump into line?

AThis is uncharted territory in British politics and banking. Nobody knows how the relationship between Government and banks will evolve, but it’s unlikely that financial bosses will take kindly to orders from ministers.

QSo what’s going on?

AThe biggest worry for bankers is that their cupboards are bare and their top priority is building up those reserves again.

A straightforward way of doing that would be to collect more profit from mortgages – and this is why many bankers will be reluctant to pass on the full interest rate cut.

If it becomes cheaper for them to get cash, they stand to increase their profit margin when they loan it to you. There is little incentive for them to give you a “cheap” mortgage.

QIs there no good news?

AActually, this is not a terrible time to be a saver – despite the cut in interest rates. Your money is the lifeblood of the banking system and the people running it know you will find somewhere else to put your cash if they can’t offer you a decent return.

QSurely this is a brilliant moment for me to buy house?

AWill you be banging your head against a wall if the value of your home drops by 20% in the next 12 months?

QI’m not looking for a quick sale, just a good deal on my mortgage. Surely there must be one out there?

AYou’ll have no trouble finding a bargain if you’re fortunate enough to have sufficient cash to lay down a 40% deposit. But few of us have such an eye-watering amount so most attractive deals are – sadly – out of reach.
Source

By Stefanie Haxel

Dec. 4 (Bloomberg) — Germany’s DAX Index declined for the first time in three days as interest-rate cuts by European policy makers failed to ease concern the region’s economy will deteriorate further.

Hypo Real Estate Holding AG and Continental AG dropped at least 2 percent after Deutsche Boerse AG said the companies’ shares will be removed from the benchmark index this month. E.ON AG and RWE AG, Germany’s biggest utilities, retreated as power for next-year delivery slid to a 15-month low.

The DAX Index slipped 0.1 percent to 4,564.23 after gaining as much as 3.6 percent earlier. DAX futures expiring this month retreated 1.6 percent as of 6:07 p.m. in Frankfurt. The broader HDAX Index added less than 0.1 percent.

Germany’s DAX Index is down 43 percent this year as almost $1 trillion in credit-related losses and writedowns at financial firms worldwide push the economy toward a recession, damping the outlook for earnings.

European Central Bank President Jean-Claude Trichet said the euro region’s economy will shrink next year for the first time since 1993 after the bank delivered the biggest interest-rate cut in its 10-year history, reducing borrowing costs by 75 basis points to 2.5 percent.

The ECB’s decision came after the Bank of England today lowered its key rate by one percentage point to 2 percent and Sweden’s central bank cut borrowing costs by the most since 1992.

Hypo Real Estate lost 7.1 percent to 2.89 euros, the biggest drop in two weeks. The property lender will be replaced by Salzgitter AG in the DAX on Dec. 22. Salzgitter, Germany’s second-largest steelmaker, climbed 4.2 percent to 51.42 euros.

Continental, Utilities

Continental lost 2.4 percent to 35.82 euros. Europe’s second-biggest car-parts maker that’s being acquired by Schaeffler Group will be replaced by Beiersdorf AG, which slipped 0.7 percent to 43.42 euros today. The maker of Nivea skin creams aims to expand more quickly than the market next year, Chief Executive Officer Thomas Quaas said today.

E.ON, Germany’s biggest utility, lost 1.9 percent to 24.98 euros. RWE, the second-largest, sank 2.3 percent to 61.80 euros.

Electricity for next year in Germany, Europe’s biggest power market, slid to the lowest since Aug. 28, 2007, on expectation demand for power will weaken as economic growth in Europe stalls.

The following stocks also rose or fell in German markets. Symbols are in parentheses.

Bayerische Motoren Werke AG (BMW GY) climbed 3.3 percent to 20.655 euros, the highest in more than two weeks. The world’s biggest luxury carmaker said it will almost triple purchases of auto parts in Mexico to help limit production costs.

Demag Cranes AG (D9C GY) dropped 5.3 percent to 15.60 euros after UBS AG cut its recommendation for the world’s largest maker of mobile harbor cranes to “sell” from “neutral.”

GEA Group AG (G1A GY) advanced 3.5 percent to 11.70 euros, the steepest increase in a week. The engineer whose machines milk a third of the world’s dairy cows, was rated “add” in new coverage at Commerzbank AG, which said the company is “deeply undervalued” relative to its peer group.

Jenoptik AG (JEN GY) added 3.6 percent to 3.78 euros, the highest in two weeks. Europe’s largest maker of traffic cameras will join Germany’s TecDAX Index of the country’s 30 largest technology stocks below the DAX on Dec. 22.

Nordex AG (NDX1 GY) advanced 1.7 percent to 9.67 euros after HSBC Holdings Plc upgraded the wind-mill maker to “overweight” from “neutral.”

Porsche SE (PAH3 GY) gained 6.5 percent to 48.38 euros. The maker of the 911 sports car will probably achieve its objective of buying 75 percent of Volkswagen AG in 2009, paving the way for full control of the carmaker, even as vehicle sales fall and the economy slows, Goldman Sachs Group Inc. analysts said.

Wincor Nixdorf AG (WIN GY) climbed 1.3 percent to 30.76 euros after the world’s second-largest maker of automated teller machines said it won an order from Shell Germany.

To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
Source

Do you need to sell a house with a mold problem? You want to sell it, but your realtor says it’s impossible! Won’t even take the listing. This may come as a surprise to you, but there are at least 3 ways to sell your moldy house. If your realtor disagrees, you may want to look for a different realtor. What are your three options?

Option #1 - Tell It Like It Is And Sell It Like It Is

The mold in your house doesn’t mean you can’t sell it. It only means you must disclose it. You just have to tell a potential buyer about the problem. You don’t have to fix the mold yourself. Although this option makes finding a buyer more difficult, it can be done. You should at least be aware of this option and how it works before crossing it off your list.

Option #2 - Fix It First

Another option is to fix the problem before you sell. If you choose this option, you need to make sure the job is done right! Otherwise you could end up paying for the repairs twice!

And be sure to get the proof (in writing) that the mold was successfully abated using a recommended procedure. You’ll need the documentation for your buyer, and probably her lender, to show the problem is solved.

Doing it right is not hard. But it is important. If the job is done wrong, you could make things worse. And you need something more than a paid receipt to show the work was done correctly. You need a written report that proves the mold problem is gone!

Option #3 - Let The Buyer Fix It

Another option is to find out how much it will cost to solve your mold problem, and then let the buyer hire the contractor and pay for it after the closing. The buyer does the work after you close and no longer are the owner.

There is no perfect solution; each has its good and bad points. Like most things in life, there is no perfect solution. Making the right decision is very important - after you have all the facts. Different options work for different folks.

For example, with our first option you simply tell the buyer there is (or may be) a mold problem, and then let them fix it. The good thing about this option is that you don’t have to deal with it. The not so good thing about it is that a smart buyer is going to want some pretty good compensation for taking an additional risk when she buys your home. That means money out of your pocket.

By applying these options, you’ll be able to sell your house and be in control of the situation. However it’s very important to follow the right procedures and avoid the common pitfalls which can make the situation even worse.

Jon Dacken is the author of several free reports about mold including “How To Sell Your Moldy House”. Visit http://www.TheToxicMoldSolution.com for your free copy.

Article Source: http://EzineArticles.com/?expert=Jon_Dacken

Christmas time is fast approaching, which means that it’s time to start thinking about gift ideas for family, friends, and co-workers. If a real estate agent happens to among the people on your gift-giving list, here are a few ideas for what to fill their stocking with this year.

A BlackBerry; if he or she doesn’t already have one of these technological marvels, now is the time to treat them. Not only will a BlackBerry make an agent’s workday more efficient and organized, but they’ll also be able to keep track of dates with family and friends, which can be difficult sometimes for busy realtors to do.

It’s a phone and a web browser, it’s got a calendar for scheduling appointments, and it can synchronize its information with your desktop computer, so all your information is stored at the ready. Agents can instantly access maps and get turn-by-turn directions to properties, keep in touch with clients and associates, and much more. These trusty gadgets are so useful and addicting that they’ve even been nicknamed “CrackBerry.” High tech tools like the BlackBerry are essential for today’s real estate agents to take their business to the next level.

The iPhone is a recent addition to the world of high tech communications. Similar to the BlackBerry in its appeal to businesspeople, the iPhone features an easy-to-use touch screen interface, offers Internet access, and can play videos and music MP3 files. iPhones are fairly new to the marketplace, and already they’ve received a great deal of positive buzz. Some suggest that a BlackBerry would be more suitable to an agent’s needs, particularly due to its GPS system and convenient email and calendar access, but no doubt your favorite realtor would be pretty excited to find a new iPhone under the tree as well.

If you’re looking for something more affordable that will still help your loved one stay organized, consider buying a nice leather or moleskin agenda. He or she can keep all their contacts and appointments together in one sharp looking date book. If you’d like to be extra helpful, fill in any birthdays, anniversaries, and phone numbers you’d like the person to remember before you give them their gift. You’ll be saving them time, as well as potentially saving them from the doghouse later on.

Another great idea this Christmas is to consider treating the real estate agent in the family to a spa day. Realtors spend most of their time dealing with clients, so they need to put their best foot forward. And if they’re really successful at their job, they may not have time to pamper themselves when they need to. So, give them something that will truly be a gift-a massage, facial, pedicure, or mud bath and sauna. There are so many exquisitely relaxing treatments out there that can rejuvenate the soul, so research a little to see which treatment would be right for your friend or family member.

When choosing your gift, think about what you would like to receive if you were in their situation. Would you like something that helps you run your business more smoothly and effectively, or would you prefer a mini vacation, game, or some other gift that will help you unwind at the end of the day. No matter what you end up giving, the realtor in your life will feel your support and care, and that’s the most important gift of all.

Complete Calgary real estate search: Search Calgary real estate listings including Calgary homes. Access photos, virtual tours, neighbourhood info, maps and more at http://www.JustinHavre.com

Article Source: http://EzineArticles.com/?expert=J_Havre

While it’s right that the real estate market isn’t in the best shape right now, a successful real estate agent can still gross a handsome income buying and selling property. True, certain real estate markets are in a depression right now, but prime land and properties are always in demand. Here are a few success secrets to maximize business in real caste.

Get to know the market. Right now it’s a buyer’s market, which means that sellers are having to unload their properties at prices that are under ancestral market value. To be a successful real estate agent in a buyer’s market you have to act quickly when an opportunity arises to snatch a piece of prime real estate. The key to maximizing your profits in any business is to buy low and sell high. And with real demesne prices being especially low right now, it’s a perfect time to make those deals that will pay off once the market rebounds, which it always does.

Pay distinction. When the real estate market is slow, as it is right now, many outstanding properties sit on the market because people are afraid to buy. Take a look around and see which properties may have been on the furnish for a long time. Usually, the seller is tired of waiting, and will be more open to any reasonable offer. Being a successful true estate agent means seeing opportunities where others don’t. But you can’t find these opportunities if you’re not out looking for them.

Look for fixer-upper opportunities. Traditionally, properties that demand a lot of work don’t sell well simply because most buyers prefer to have a home that’s ready to move right into. It’s the same reason most people don’t buy cars that don’t run honourable. However, there are some amazing deals to be made for someone who can buy a property that needs work at a low price, put a few bucks into it and then turn it around for huge profits. If you’ve ever seen the hit show Lose one’s cool This House then you know that there’s money to be made doing this. Just be careful; you won’t make money trying to flip a house in a run-down neighborhood - in fact, you’ll probably lose your shirt. If you take a look around there are plenty of properties in well-to-do neighborhoods that need more industry than most buyers are willing to put in. Target these and you’ll reap the rewards.

There are many more success secrets to maximize business in verified estate that can be explored. Simply put: The reason that so many people choose real estate to build wealth is because belongings is always in demand. It’s a market that will fluctuate like any other, but will never go away.