Where did the notion that men should buy houses for women come from? Some people say that this is based on our natural instinct. Like any other animal, parents want to protect their young for the continuation of the species. Anyway, asked that question because I wanted to know why business relating to real estate is suddenly making becoming popular. Before you had the buying and selling of properties. Now, with the widespread use of the Internet, we have real estate trading which is basically “I buy yours you buy mine” kind of arrangement.
The term real estate is used to refer to any property, which is permanently attached to land such as buildings and houses. Most people refer to it as real property but there are situations wherein the term real estate is used for the land and the building together while real property refers to the ownership rights of the land itself. On the other hand, the word real is used to categorize these properties as things as opposed to people. Records show that the idea of real estate can be traced as far back as 1666.
With the idea of personal property becoming more widespread, real estate has become a major area of business in the United States. In fact, economists claim that the reason for the recent economic slump is due to the lower revenue generated by this industry. In order for the US to get back on track, Americans need to view land and buildings as an investment.
There are many types of real estate: residential, commercial or industrial property. The most common transactions involve the buying and selling of residential properties such as apartments, condominiums and a duplex. Sometimes families who want to move to a different state finds it difficult to find dwellings on their own so they usually do a map search of the area they’re moving to so as to find any houses which are either for sale or for rent. This way, they get to pick the properties they want without having to travel yet, thereby saving time, effort and money. In some cases, people contact a real estate agent who can then give them a tour of the area so that they get to see the houses and to possibly bargain for the price of the property.
In US and Canada, finding property is easy because of the existence of the multiple listing system or MLS – a data base wherein real estate brokers can share information about the properties their clients are planning to sell, or in some cases, planning to buy. Most people who want to buy a house usually have no idea where to start so they call a real estate broker. When you do so, the broker searches the MLS to find details about the property. At present, there are about 800 different MLS in the US with new competitors like Google Base, Craigslist and Cribfinder entering the public domain.
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Monday, December 5, 2011
Tuesday, November 2, 2010
Buying at the top – Wachovia’s mistake
The real estate market greatly exploded over the last five years with the biggest shift happening in the past three years. All good things must come to an end, and unfortunately this real estate boom is over. People who have bought in the past six months have been buying at the top, and even large companies have made this mistake. One company in particular is Wachovia Bank. Its recent purchase of Golden West Financial for $26 billion is a prime example of a ‘buying past the peak’ investment.
Two of the primary drivers of this real estate market mania have been people’s belief that they must own real estate coupled with a second factor of low interest rate mortgages.
The first driver is people’s fervent belief that they must buy real estate, but this ‘herd mentality’ is beginning to change. Speculators buy homes as investments and these investors have been a large source of the demand for real estate in the past few years. Now, not only have speculators stopped buying but they are also selling the properties they own. As a result, inventory of homes for sale are at astronomical levels.
The second driver of the real estate market has been low interest rate mortgages. Interest rates bottomed out in June of 2003 and have been rising ever since. As a result interest rates are substantially higher than they were only 12 months ago and they only have one way to go – up. Higher interest rates are needed to help slow down inflation. Inflation has recently caused consumers to really begin feeling a pinch in their wallets.
In order to cope with higher interest rates and high real estate prices, banks have thrust adjustable rate mortgages onto the American public. Since March 2004, there has been a 59% increase in one-year adjustable rate mortgages. These mortgages start out with a low interest rate, but quickly rise after the one-year introductory period is over. Moody’s has reported that an astounding $2 trillion of adjustable mortgages will reset between 2006 and 2007 and this will really cause foreclosures to rise like never before.
Rise they have as mortgage foreclosures nationwide increased 38% as reported by RealtyTrac Inc. Mortgage defaults will only worsen with higher interest rates and more adjustable mortgage rate resets. What bank is infamous for specializing in adjustable mortgage loans? The answer is Golden West Financial bank.
Adjustable mortgages will be the primary cause of the coming mortgage meltdown and ground zero for this will be overpriced areas such as California, Florida, and New York. Golden West Financial concentrated their adjustable mortgages in California, one of the most overpriced real estate areas in the country. Wachovia was so absorbed by the real estate bubble it paid the highest price ever per share for Golden West.
So what happens when many of Golden West’s clients foreclose on their properties because they cannot afford a 50% jump in monthly mortgage payments? Wachovia will feel the pain as they are forced to sell these mortgages to investors for pennies on the dollar. Do not make the same mistake; learn all about the markets and economy. It is important to know there is still time to prepare yourself for the real estate bubble bursting and the coming recession. Go to www.MyRealEstateBubble.com for more information.
Two of the primary drivers of this real estate market mania have been people’s belief that they must own real estate coupled with a second factor of low interest rate mortgages.
The first driver is people’s fervent belief that they must buy real estate, but this ‘herd mentality’ is beginning to change. Speculators buy homes as investments and these investors have been a large source of the demand for real estate in the past few years. Now, not only have speculators stopped buying but they are also selling the properties they own. As a result, inventory of homes for sale are at astronomical levels.
The second driver of the real estate market has been low interest rate mortgages. Interest rates bottomed out in June of 2003 and have been rising ever since. As a result interest rates are substantially higher than they were only 12 months ago and they only have one way to go – up. Higher interest rates are needed to help slow down inflation. Inflation has recently caused consumers to really begin feeling a pinch in their wallets.
In order to cope with higher interest rates and high real estate prices, banks have thrust adjustable rate mortgages onto the American public. Since March 2004, there has been a 59% increase in one-year adjustable rate mortgages. These mortgages start out with a low interest rate, but quickly rise after the one-year introductory period is over. Moody’s has reported that an astounding $2 trillion of adjustable mortgages will reset between 2006 and 2007 and this will really cause foreclosures to rise like never before.
Rise they have as mortgage foreclosures nationwide increased 38% as reported by RealtyTrac Inc. Mortgage defaults will only worsen with higher interest rates and more adjustable mortgage rate resets. What bank is infamous for specializing in adjustable mortgage loans? The answer is Golden West Financial bank.
Adjustable mortgages will be the primary cause of the coming mortgage meltdown and ground zero for this will be overpriced areas such as California, Florida, and New York. Golden West Financial concentrated their adjustable mortgages in California, one of the most overpriced real estate areas in the country. Wachovia was so absorbed by the real estate bubble it paid the highest price ever per share for Golden West.
So what happens when many of Golden West’s clients foreclose on their properties because they cannot afford a 50% jump in monthly mortgage payments? Wachovia will feel the pain as they are forced to sell these mortgages to investors for pennies on the dollar. Do not make the same mistake; learn all about the markets and economy. It is important to know there is still time to prepare yourself for the real estate bubble bursting and the coming recession. Go to www.MyRealEstateBubble.com for more information.
Tuesday, October 5, 2010
Architectural Outsourcing
The outsourcing industry worldwide is booming. There are very few Information Technology sectors which are not into outsourcing.
The question arises, that when everybody is jumping on the outsourcing bandwagon for obvious benefits, then why not the construction and real estate industry.
One aspect where the real estate industry can immediately benefit is in outsourcing designing of 3d models or renders of their present and future projects. It is widely acknowledged that the 3d representation of a real estate venture creates a stunning impression in the mind of the buyers, if designed appropriately.
Today, architects and builders recruit in-house designers who design 3d models for them. But then most of these people are not 3d specialists, not at least specialists in designing 3d models for real estate ventures. To achieve this purpose one needs the help of civil engineers, architects and designers working in tandem. Also, the cost of outsourcing this work is much less than compared to getting it executed in-house.
Also, to allocate resources to 3d modeling is a problamatic affair for such consultants and companies as their core business is construction and not 3d design.
To tap this opportunity many companies have emerged worldwide who specialize specifically in 3d modeling. For an architect or builder to outsource such work to these specialist companies, is a proposition of significant benefits. Not only it saves them costs but also takes the headache off their shoulders.
Also, the architectural expertise and the design expertise of 3d modeling companies
can be combined to create life-like models which would be utilized on the project website, brochures and other sale materials.
After all, a real estate venture is not a virtual commodity and folks would like to have a glimpse of the future before they invest.
Many architects have already realized this and a significant amount of work is being outsourced. Its time others realize it too and make a head start.
The question arises, that when everybody is jumping on the outsourcing bandwagon for obvious benefits, then why not the construction and real estate industry.
One aspect where the real estate industry can immediately benefit is in outsourcing designing of 3d models or renders of their present and future projects. It is widely acknowledged that the 3d representation of a real estate venture creates a stunning impression in the mind of the buyers, if designed appropriately.
Today, architects and builders recruit in-house designers who design 3d models for them. But then most of these people are not 3d specialists, not at least specialists in designing 3d models for real estate ventures. To achieve this purpose one needs the help of civil engineers, architects and designers working in tandem. Also, the cost of outsourcing this work is much less than compared to getting it executed in-house.
Also, to allocate resources to 3d modeling is a problamatic affair for such consultants and companies as their core business is construction and not 3d design.
To tap this opportunity many companies have emerged worldwide who specialize specifically in 3d modeling. For an architect or builder to outsource such work to these specialist companies, is a proposition of significant benefits. Not only it saves them costs but also takes the headache off their shoulders.
Also, the architectural expertise and the design expertise of 3d modeling companies
can be combined to create life-like models which would be utilized on the project website, brochures and other sale materials.
After all, a real estate venture is not a virtual commodity and folks would like to have a glimpse of the future before they invest.
Many architects have already realized this and a significant amount of work is being outsourced. Its time others realize it too and make a head start.
Friday, April 2, 2010
10 Common Homeowner Complaints
Home ownership is most people's dream come true. Don't let it become a nightmare.
1. Real Estate Fraud
“Someone forged my signature on a Grant Deed. The document says my property now belongs to someone I don’t even know.”
Contact your state's real estate commission.
2. Unlicensed Contractors
“I hired a guy who said he was licensed to make repairs to my kitchen. He started the work but never finished. I found out he isn’t licensed and that he recorded a mechanic’s lien against my house.”
Never hire an unlicensed contractor.
3. Foreclosure Consultants
“When I got behind on my house payments, I started getting mail from people saying they could save my home. I signed a contract with a guy who promised to make up the back payments and help me get a new loan. He didn’t do any of that. Instead, he sold my house to somebody else and now I’m being evicted.”
If you’re behind on payments, call your mortgage company and work out a payment plan.
4. High Interest Loans
“I thought I was getting a good deal on a refinance. Turns out, the interest rate is way too high and they charged me all kinds of junk fees.”
Shop around for the best rates and fees before getting a new loan and make sure your read the fine print.
5. Adjustable and Fixed-Rate Loans
“The loan representative said I was getting a fixed-rate, 30-year loan. Six months later, my interest rate jumped more than 3%.”
Review your loan documents before you sign. Interest rates must be disclosed by the lender.
6. Account and Billing Errors
“My mortgage company did not credit my account for the mortgage payments I’ve made.”
Send a letter to your mortgage company requesting a payment history. Be sure to include your account number in the letter.
7. Illegal Rooms
“I just moved into the house I bought and the city tells me that some of the rooms were added without building permits.”
You may be required to make changes. Be sure to check for building permits before you buy a home.
8. Repairs and Escrow
“Before I bought my house, the seller promised to make repairs. My agent said it was OK to sign and close escrow, even though the repairs were not done. It’s been 3 months and the seller still hasn’t made any repairs.”
Make sure repairs are completed before you close escrow.
9. Property Taxes Not Paid
“My mortgage company was supposed to pay my property taxes but didn’t. Now I owe past taxes and penalties.”
Call your mortgage company for an explanation. If they don’t take care of the problem, contact your state real estate commission.
10. Vacant Land Purchase
“I bought some vacant land in the desert to build a house on. The seller said there was water, sewers, electricity and phone service. Turns out, none of those are available.”
Check with the local Building and Safety Department before you buy vacant land.
Take your time and do your homework. Property purchases are usually the biggest investment you can make. Take time to read all of the documentation and if your don't understand something, ask questions. If necessary, hire a real estate attorney to protect your interests.
1. Real Estate Fraud
“Someone forged my signature on a Grant Deed. The document says my property now belongs to someone I don’t even know.”
Contact your state's real estate commission.
2. Unlicensed Contractors
“I hired a guy who said he was licensed to make repairs to my kitchen. He started the work but never finished. I found out he isn’t licensed and that he recorded a mechanic’s lien against my house.”
Never hire an unlicensed contractor.
3. Foreclosure Consultants
“When I got behind on my house payments, I started getting mail from people saying they could save my home. I signed a contract with a guy who promised to make up the back payments and help me get a new loan. He didn’t do any of that. Instead, he sold my house to somebody else and now I’m being evicted.”
If you’re behind on payments, call your mortgage company and work out a payment plan.
4. High Interest Loans
“I thought I was getting a good deal on a refinance. Turns out, the interest rate is way too high and they charged me all kinds of junk fees.”
Shop around for the best rates and fees before getting a new loan and make sure your read the fine print.
5. Adjustable and Fixed-Rate Loans
“The loan representative said I was getting a fixed-rate, 30-year loan. Six months later, my interest rate jumped more than 3%.”
Review your loan documents before you sign. Interest rates must be disclosed by the lender.
6. Account and Billing Errors
“My mortgage company did not credit my account for the mortgage payments I’ve made.”
Send a letter to your mortgage company requesting a payment history. Be sure to include your account number in the letter.
7. Illegal Rooms
“I just moved into the house I bought and the city tells me that some of the rooms were added without building permits.”
You may be required to make changes. Be sure to check for building permits before you buy a home.
8. Repairs and Escrow
“Before I bought my house, the seller promised to make repairs. My agent said it was OK to sign and close escrow, even though the repairs were not done. It’s been 3 months and the seller still hasn’t made any repairs.”
Make sure repairs are completed before you close escrow.
9. Property Taxes Not Paid
“My mortgage company was supposed to pay my property taxes but didn’t. Now I owe past taxes and penalties.”
Call your mortgage company for an explanation. If they don’t take care of the problem, contact your state real estate commission.
10. Vacant Land Purchase
“I bought some vacant land in the desert to build a house on. The seller said there was water, sewers, electricity and phone service. Turns out, none of those are available.”
Check with the local Building and Safety Department before you buy vacant land.
Take your time and do your homework. Property purchases are usually the biggest investment you can make. Take time to read all of the documentation and if your don't understand something, ask questions. If necessary, hire a real estate attorney to protect your interests.
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