Housingot

Paradise Deferred – S. Elliott
If you’ve ever thought about getting away from it all and moving to paradise, you’re not alone.  The dream of perfect weather and carefree living has inspired many of us to toss out our ice scrappers and head for the islands, but living in paradise these days may require some patience, adjustment, and sacrifice. Honolulu is the seventh most expensive American city in which to live.

The median value of single-family owned and occupied housing in Hawaii is more than twice the national average.
Buying a home in Hawaii is an expensive proposition, but never more expensive than in the current lending market.  Beautiful beaches, glorious weather and the laidback lifestyle make living in the islands a dream come true.  But that dream is becoming a reality for fewer and fewer people who apply for loans, particularly in markets like Oahu where the median home price is over £400,000.

As a result of Wall Street’s current cautious approach to real estate, Hawaii is suffering a disproportionate share of the fallout.  Current reluctance to buy even well rated loans in the AAA range has had a profound short-term impact on the jumbo loan market.  Jumbo loans, those exceeding £400,000, have skyrocketed by more than a full point, leaving many buyers unable or unwilling to take the plunge.

Hawaii, with its highly valued real estate, is in the middle of this quagmire.  Lenders hoping that the higher premiums will jump start Wall Street, are concerned that the failure of this strategy will result in more than just a brief financial hiccup.  Disturbing new trends are reflected in lenders escalating rates on jumbo loans to a point and a half above conforming loans.  Historically, the premium spread is about a half to three-quarters of a point.

This new disparity is setting off alarm bells across the country, but nowhere more than in Hawaii, where it is fueling fears that a large number of motivated buyers and sellers will be crippled by the inflated price of these loans.

The current turmoil in financial markets can be attributed to the failure of two elements of the lending equation:  One revolves around the criteria that lenders use to determine which borrowers are most likely to repay their mortgages.  The second encompasses the pool of money available to lend.

Because of many recent loan defaults, banks are stockpiling cash as a precaution against further losses from bad investments; they have become much more cautious about how and to whom they lend. Traditionally this has been called a “credit squeeze”, but the fear is that, without an end in sight, we are headed toward a shortage of liquidity, a situation in which consumers have inadequate access to loans.

The prospect of a shortage of liquidity has far-reaching, global ramifications, potentially slowing economic growth on a global scale.  For Hawaii, this could be devastating.

A single mother is tasked with the responsibility of performing the role of mother in addition to the father role. Fortunately there is government assistance for single mothers through various programs available.

A single parent has a harder task than any two parent family. Most of the single parent head of households are females. Many single mothers have not had the opportunity to get a good education nor sufficient housing.

Food and funds are often insufficient and the single woman, in many cases cannot afford child care nor can she afford a home. Consequentially, she requires assistance in order to for basic provisions for her children.

There is a government program called WIC which is designed for single women or qualified parents with children five and under. Food such as milk, cereal, cheese, juice, beans, peanut butter and eggs are the main foods that are provided.

Each month the qualified parent or parents are given vouchers which are to be use at any time before the expiration date. The above listed foods are all rich in vitamins and nutrients necessary good health. This program is offered by the Department of Children and Families.

Another program offered by the Department of Children and Families is called TANIF. This two parents or single mother government assistance program offers temporary financial assistance for needy families. Monetary funds are provided to qualified families. The parent or parents must meet all of the income and need criterion.

Grants and housing vouchers are also part of a single mother government assistance program. The housing authority will house a single mother and her family for a fraction of the cost of basic apartment.

Food stamps are also provided for a single mother. Over ten years ago food stamps came in the form of paper vouchers. Now single mothers use a card similar to a credit card to make all of her purchases. Each month, depending on a single mother’s situation and income, she is awarded a specific dollar amount of food stamps.

For medical assistance, there is Medicaid or various other healthy kid programs. Children can receive medical care at not cost if they qualify. Depending on the single mother’s income, a small co-payment may be charged. Every state has similar rules and regulations that apply to single mother support programs. For more information on single mother government assistance, visit your local Department of Children and Families.

Get free information on financial aid for single mothers including single mother scholarship, government grants, mortgage assistance and more at Singlemotherfinancialaid dot com.

It is impossible for me to imagine life without a roof over my head. A house or a place to stay is an absolute necessity. In the world today, people live in rented, leased or own homes. Everything has its own experience but nothing beats the feeling ‘I’m home’. Now, if you do not have a home of your own but cannot afford it, there is a way and you cannot resist it!

Do you want to take a guess as to who is giving out the grant you are seeking? It is the government! The government helps people buy houses by giving out free, housing grants. They have always been there to help people live better lives by helping them financially.

The government sets apart huge amounts of money to be given as grants to the needy person. These are not just simply given to the individual. They are on given on a need-to-have basis. Grants are available in many categories. Housing grants is one of them. So, do not worry if your income is low; the government has something for you.

Housing grants are free, but they cannot be given without any effort from your end. You have to apply. You will have to make a strong case for yourself in the written application. If you are unsure about how to proceed, you can get all the information you need at your local Government office. It is here that you will have to apply for free housing grants. Housing grants not only are given to buy new homes, but also for home renovations related to heating and cooling repairs in the home. The best case is if your heater has not been working and winter is approaching, you will definitely get the grant when you apply. The government will help.

Find out if you are eligible for a government grant. You need to be a tax-paying citizen of the United States of America and you should not be below 18 years of age. If you are below 18, you will not get a government grant.

Not everyone may qualify for housing grants, but you will not get to know how much money is awaiting you until you apply for the grant. The best time to apply for Housing Grants is when the real estate market is not doing very well. This is the time when you will be able to secure low interest home loans and buy the home of your dreams.

How to proceed? You have to find out what you have to do in order to get housing grants. Just collect he forms, fill them out correctly and submit them. If you need help with the forms, you can use any of the available grant kits that will walk you through the entire process of application so that you will not miss a step. Therefore, you are just a step away from your grant now. Submit and wait for their reply. You might be a proud house owner soon!

The Federal Housing Administration has been helping Americans get loans for over 70 years. Here’s an overview of the Administration, better known as the FHA.

Federal Housing Administration

The Federal Housing Administration is, ironically, more of an insurer than anything else. The FHA does not provide mortgage loans to you and me. Instead, it insurers mortgage and home loans provided to us. This makes lenders more willing to write loans for people that otherwise would be frowned upon.

The insurance aspect of the FHA is a fairly common tool used by the federal government to promote a specific behavior. Student loans are a classic example. An 18-year-old person typically couldn’t qualify for a loan to by a sandwich, but student loans are plentiful and easy to get. This is because the federal government wants to promote education and does so by guaranteeing the loans. If you fail to pay the lender back, the government is on the hook. The FHA provides similar insurance for the purpose of promoting homeownership in the United States.  In fact, the FHA is biggest mortgage insurer in the world, doing so for over 30 million mortgages since it was created in the 1930s.

FHA loans are a very attractive mortgage option. Unlike a private mortgage, FHA loans are designed to cut you a major break so you can buy a home. The break comes in the form of a very small down payment. The typical down payment is only three percent, a huge break compared to the 20 percent most traditional mortgage lenders like to see.

To the surprise of many, the FHA is not funded with our tax pounds. Instead, it is funded by premium payments. If you go with an FHA loan, you will have to pay the insurance premiums the FHA charges in providing the loan. This typically occurs for the first five years of the loan or until the debt ratio on the home is roughly seventy eight percent. The figures change, so make sure you get an accurate depiction if you are considering an FHA loan.

In many ways, the FHA has revolutionized the mortgage industry. When it was formed in 1934, homeownership was a fairly rare occurrence. To buy a home, you typically had to provide a down payment equal to half the value of the home. The mortgages were also fairly short with some being only three years. At the end of that period of time, you had to come up with the total then due. Talk about a tough real estate market!

Ultimately, the FHA serves as a stabilizing force in the real estate market. Private lenders can change mortgage requirements for better or worse, which can dramatically impact the ability of people to buy homes. The FHA smoothes out these fluctuations by always providing a mortgage loan resource.

Free Housing Loans! Does it sound like a dream come true to you? Are you excited when you see the words “Free” Housing loans?

Well the truth is, you should be! Did you know that Free Housing loans have been available to you for more than 50 years now? Yes! They have been given out by your government for more than 50 years now. And the only reason why you have not heard about it is probably because you have not looked or searched for it long enough. It is true that the Government does not advertise this too much, but that does not mean that they are not available.

So if you happen to be looking to own a house, or remodel your old one, this is your chance. Free housing Grants are available to you even today. All that you have to do is make the extra effort to go apply and get it. The best part about these loans is the fact that you do not have to repay the money to your government. What’s even better is the fact that you can apply for more than just one grant! Don’t believe me? Try it!! Are you pinching yourself?? You are not dreaming friend! It is indeed true! Free Housing Grants are available to you today! Go down to your local government office today and find out for yourself.

There are also Home Buyer Loans that are available today. Home Buyer Loans are very different form free Housing Grants. When a person plans to buy a home for the first time the Home Buyer loaner people give him/her any one of the following benefits:

They either forgive the loan, or they may give the loan on very low interest, or they may take no down payment, or they may just lower the rates that the lenders are allowed to charge.

You need to do a lot of research before you apply for one of these loans. Sometimes, they may be very tricky. The best place that you can look up and find more information on Home Buyer Loans is on the HUD website. You will definitely find valuable information there.

So go ahead and make you pick and find out what is best for you. Is it going to be a Free Housing Loans or a Home Buyer Loan? Whatever it maybe, we wish you all the best with you new home!

Housing starts in Canada declined in March for the first time since November 2009, according to Canada Mortgage and Housing Corporation. A modest decline of 1.5 percent was recorded across the country. This decrease is attributable to a slowdown in multi-family home starts.

Growth slowed from a revised number of 200,400 housing unit starts in February to an adjusted-for-seasonality total of 197,300. Per a survey from Bloomberg that elicited 19 responses, housing starts had been expected to grow to 205,000 throughout Canada.

According to economists at BMO Capital Markets, there will be continued declines in housing starts, with a prediction that construction will begin on 170,000 homes in the third quarter of 2010. Housing starts for multi-family dwellings decreased by 15 percent to 77,500 home units. However, a 6.9-percent increase was seen in the initiation of single-family house construction, indicating 97,700 homes.

Rising interest rates are a key factor in this expected decrease in housing starts, as large banks such as Toronto-Dominion and Royal Bank posted increases as of March 29. Other major Canadian banks will soon follow with rate hikes.

Low mortgage rates not witnessed in many decades helped propel the Canadian real estate market toward recovery from its first significant economic recession since the year 1992. Since April 2009, the key interest rate from the Bank of Canada has remained at 0.25 percent, a record low. This has been the driving force behind the economic recovery, but now inflationary pressures might force the banks to raise their rates.

Rich Mundle – Sherwood Park Homes

At the surface if you read and watch the news you are hearing stories signaling improvement in the economy, and there is more to come little by little. It is becoming more apparent that the economy is beginning to rise from the bottom. Or as one reporter described in a recent article, the improvements are somewhat equivalent to moods improving from miserable to dejected. But at least that’s something. But look below the surface and you can see currents that are still pushing back against the recovery. The biggest, as it has been for well over a year, is the jobs crisis. So far unemployment is stuck at 9.7% and is almost universally expected to improve only slowly. And until more people get back to full-time employment, there will be a continuing drag on the economy because consumer spending is so critical.

Here is how the housing crisis could have an effect on small business lending. As we know, the housing market is still struggling, both existing home sales and new construction. In March, housing starts rose 1.6 percent, the third straight monthly increase. But there are many who think that some of that improvement was due to the fact that the government’s tax credit for homebuyers is about to come to an end. So it’s not impossible that housing starts may fall back again. But aside from new housing construction, in the existing housing market there is a great big avalanche building which may be about to break loose. It is foreclosures – both properties that have already been foreclosed on and not put back on the market yet, and houses on their way to foreclosure. And the problem is that many of these houses will go on the market at lower prices, in many cases lower than the mortgages on the houses. This will be a drag on the general housing recovery and could also create problems for banks holding the mortgages.

How does all this affect small business lending? How much a bank can lend is based on the equity on their balance sheet. If a bank, for example, has $5 million in loans on houses that have gone into default, and the houses wind up being sold for less than the loan amount, that loss is written off against the bank’s equity. Let’s say that a bank can lend $5 for every $1 in equity. For every dollar lost, it is $5 that cannot be loaned – either for residential or commercial purposes. Using this example, suppose the bank took a $500,000 loss on those mortgages. At a 5-to-1 ratio, that is $2.5 million no longer available for lending. So given the fact that banks already don’t like small business lending because of the risk, the smaller amount that they have to lend is less likely to go to small businesses except in rare cases. So housing can have a direct impact on small business lending.

Doug Carleton has worked in SBA lending since 1994. Prior to that he spent 28 years in real estate development, construction and finance. He has been a frequent speaker and author on SBA and small business financing and consults with small business owners on financing and strategic financial planning for their businesses. He is a certified facilitator in the FastTrac entrepreneurial training programs of the Kaufman Foundation, the only large American foundation to focus on entrepreneurship.

Bubbles: Tech, Housing and Gum

Americans like The Tennessee Mountain Man are such optimists and patriots that the country just keeps growing and growing despite the messes of our own making and those imposed on us.  And, without once considering where it is taking us.

Little wonder we know neither what the Holy Book nor the Hebrew, Muslim, or Christian prophets such as Michel de Nostredame have to say.  Having lost the meaning of charity (love), the most important gift we had to lose the rest. We have even corrupted and confused “profit” with “prophet” as in prophet.com. Wise geek dot com says, in part:  “The term prophet has several definitions and is based on issues of faith and belief. Loosely, a prophet is one of two things:
1) He or she receives a direct message from the divine, which is meant to be communicated to others.
2) He or she is able to somehow tap into divine knowledge and make predictions about the future of the world or about individuals.”

But I digress thinking upon the cause rather than the reality.  The Reality for example:  The Tennessee Mountain Man hates chewing gum of any kind.  He hates it being spit on the ground where it sticks to his shoes.  He especially hates seeing bubbles being blown with bubble gum and hearing people who can’t resist popping and smacking their chewing and bubble gum, a problem not associated with smokeless tobacco products.

Remote Helpdesk 1 is much more likely to terminate a computer repair technician for chewing gum than reporting to work with a hangover, or chewing tobacco.  Outsourced IT Services customers do not want to hear a tech or anyone else chewing and popping gum or food in their ears.

Burk Pendergrass hates it when bubbles of any kind burst because someone always gets negatively effected.  But the age old gum mess should have at least taught us how to recognize a bubble.  It is, after all, exactly what the name implies.  It is a bubble and bubbles all do the same thing.  They tend to swell to an unsustainable point where they burst splattering all over anything or anyone within range.

In the 80’s everyone was chasing a realtor’s license because real property is where the money was.  The result, almost everyone got burned.

In the 90’s the tech industry had seemingly come of age and anyone and everyone with a nickel to invest was chasing tech stocks.  The and  result, everyone got burned.

2008 is almost here and guess what?  Tech stocks are back in vogue while real estate investors are taking a beating once again. Guess what?

Bubbles:  We may be patriotic and we may be optimistic, but for a capitalistic society we sure are short on memory.  It is simply amazing that we can remember in an instant all the negatives associated with chewing gum and bubble gum, while blinded  by our inherent driving greed we can’t or won’t see that big heavy bowling ball racing towards us like a speeding bullet getting ready to knock our feet out from under us again.

So far, we haven’t seen men killing themselves in numbers like the last stock market crash, but what else could such a greedy future hold?

Don’t the Holy Bible speak on this?  Bible?  Ah, yes.  That uh…That Book mother always had prominently displayed in the living room and den.  That Book which was always on the corner of dad’s desk.  Didn’t it say something about gaining the whole world and loosing your soul?  I wonder what ever happened to that Book?

Today every subject and discipline and government agency has it’s own “bible” usually with the word “Bible” being part of the name or title. There is the evil bible at evilbible.com, the computer repair bible, the windows bible, the photoshop bible, the investor’s bible, the job hunter’s bible, and even the novel…”The Poisonwood Bible”. Wonder what those bibles say about technological advances, bubbles, gum, greed and housing and God knowing you have need of these things and that He will provide? Wonder how their text compares with what dad’s Bible said?

Oh, well…It is just human nature – Bubbles: Tech, Housing and Gum. In fact, see the tracks? A bubble head has recently been here. Better watch where you are stepping!

more at http:remotehelpdsk1.com

tmm

If you have property that you wish to sell and it is important that you sell fast, you may wish to consider an alternative to advertising your home on the market. With the market still being in a slump, your property may remain unsold for many months, which is of course not help to you. Selling fast with a company offering to pay cash for your home has many advantages.

It is all well and good putting your home on the market and getting interest straight away, but the potential buyers may be in a chain, which means they have to sell property before they buy yours. If the sale on their property falls through it causes a chain event, meaning they cannot buy your property and you are back to square one. When you agree to sell to a company offering a fast sale and both sides are happy, the company will not back out of the deal and the sale will go ahead in just a few weeks. Another advantage is that when you go to an estate agent there are costs and costs for a solicitor. These can often add up to substantial amounts whereas if you choose to sell to a company offering cash for your home fast, there are typically no fees involved.

Before advertising your property for sale you typically have to spruce up the property to make it look its best, this often comes with high cost, particularly if you have let things slide. Selling with a company offering a fast sale you do not have this worry as they typically consider property in any condition. The only thing you have to weigh up as a property owner, when selling fast, is that usually you are offered less than the full asking price. However, bear in mind there are no fees, no chains, and no costs for sprucing up the property and of course, you have a guaranteed fast sale. Also, consider the fact that if you were to put your home on the market you may not get the full value of the property as you may be forced to lower the price in order to sell fast.

A fast property sale this way may be beneficial to a wide range of property owners. You may have to sell property that was the family home if you are divorcing. Divorce is hard enough to contend with, without the added stress of putting the home up for sale and waiting for a sale. Those who have inherited property may be able to sell without paying out fees. Anyone who has to relocate or emigrate can sell fast and move into the new life with cash in the bank and no worries of having to return to close a sale. If you are downsizing and have found the perfect place, you may wish to sell fast and use the equity for your new home. Companies offering fast sales consider any property and offer this service all over the UK, so apply online and see how much you may be able to get for your property and sell fast.

If you wish to sell house quickly and sell for cash with a sale that is guaranteed then Oliver Darragh may be able to offer you the best solution. Don’t get stressed with the housing market slump, sell quickly.

The purpose of this article is to analyze valuation methodology for several atypical types of apartments. Various circumstances and situations can cause an apartment complex to have above-or below-market rental rates, occupancy rates and operating expenses. This analysis examines the following two situations:

1.    low-income subsidized apartments, which receive above-market rental rates from HUD or another government agency, and
2.    projects that are part of the Low Income Housing Tax Credit (LIHTC) program.

The LIHTC program was established by the U.S. Congress to encourage development of affordable housing in economically disadvantaged areas. Project developers receive a tax credit for following the guidelines established by the program. They typically sell these credits to Fortune 500 corporations for 45 percent to 60 percent of the total project cost, excluding land.

The first step in the valuation process is analyzing market value definitions. The following is the definition from the Texas Property Tax Code, Section 1.04 (7): market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

a.    exposed for sale in the open market with a reasonable time for the seller to find a purchaser,
b.    both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions to its use, and
c.    both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

Section (b) of the Texas Property Tax Code further requires: the market value of property shall be determined by the application of generally accepted appraisal techniques, and the same or similar appraisal techniques shall be used in appraising the same or similar kinds of property. However, each property shall be appraised based upon the individual characteristics that affect the property’s market value.

The definition of market value, according to the 10th edition of The Appraisal of Real Estate published in 1992 by the Appraisal Institute, is: market value is the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.

The term which requires further review in the above definition is “knowledgeably.” Is the purchaser knowledgeable regarding the effort required to comply with subsidized housing program requirements and tenants? Does he consider the effort to be rent for real estate or compensation for services? Does the purchaser of an LIHTC project understand that maximum rents are now established for at least 15 years based on deed restrictions? (LIHTC deed restrictions are now required for 30 years in Texas and most other states.)

Fee simple estate is defined in the third edition of the Dictionary of Real Estate Appraisal published by the Appraisal Institute as: absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.

The practice in Texas is to base the assessed value on the value of the fee simple estate as opposed to the leased fee estate. This analysis is based on valuation of the fee simple estate instead of the leased fee estate.

The definition of leased fee estate in the third edition of the Dictionary of Real Estate Appraisal is: an ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease.

The primary difference between the fee simple estate and the leased fee estate is that the tenant and landlord are each bound by commitments to pay rent and allow use of the property for a term. The contract rent agreed to between landlord and tenant may or may not be equal to market rent. For example, if a landlord entered into a 30-year lease for rent of £5 per square foot 15 years ago (when market rent was £5 per square foot) and the current market rent is £10 per square foot, the tenant has a substantial advantage. The tenant has a leasehold estate which may or may not have value depending on the term of the lease, the contract rent and market rent.

The Dictionary of Real Estate Appraisal defines leasehold estate as the interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.

Conversely, if the tenant agreed to a rental rate of £15 per square foot in a strong market 10 years ago, and is committed to pay that rent for another 10 years, there is a substantial advantage to the landlord, and the tenant has a leasehold estate with a negative value. Practice in Texas is to establish the assessed value based on the fee simple estate instead of the leased fee estate. Therefore, the relevant criteria for determining market value includes market rent, market expenses, market occupancy and market derived capitalization rates. If a taxpayer made a poor business decision 10 years ago and has substantially below-market rent, it is inequitable for the taxing entities to reduce their ad valorem tax due to the bad business decision of the property owner. Conversely, if a property owner made a fortuitous or wise business decision and entered into an above-market lease, it is not appropriate to collect an above-average level of ad valorem tax from him because of his luck or prudence.

Market rent is defined by the third edition of the Dictionary of Real Estate Appraisal as: the rental income that a property would most probably command in the open market; indicated by current rents paid and asked for comparable space as of the date of appraisal.

Market rent is the compensation paid for the use of the real estate. It should not include compensation paid for factors other than the use of the real estate such as additional services which are not typically provided.

The next step in this process is to analyze valuation of properties which participate in subsidized programs which receive above-market rental rates. The final section will address valuation of projects in the LIHTC program.

Valuation of Subsidized Housing

This analysis will consider both the income and the sales comparison approaches to value. The cost approach is not utilized since it would provide similar results after calculating external obsolescence due to differences in rental rates.

Income Approach:

Apartment owners who participate in subsidized housing programs may or may not receive above-market rental rates. For many years, HUD offered above-market rental rates as an inducement to property owners to participate in the program. There are two reasons for HUD paying an above-market rental rate:

1.    to compensate for the inconvenience of dealing with a bureaucratic government program which mandates detailed inspections not typically required in the private market; and
2.    to compensate for working with residents who tend to be at the lowest socioeconomic level in our society.

It has not been unusual for HUD to pay contract rent of £0.70 to £0.80 per square foot per month for subsidized housing projects, even though the market rent for competing projects might only be £0.45 to £ 0.50 per square foot per month. The rent and sales comparables used in this analysis are located in a neighborhood characterized by income levels in the bottom quartile of the Houston area, minimal new construction of residential or commercial buildings for 25 years and heterogeneous levels of quality and appeal. Some sections, such as Riverside, have experienced gentrification, but other areas are marked by poorly maintained properties. Both the market rent projects and the subsidized rent projects are located in the area south of downtown Houston, bound by 288 to the west, Interstate-45 to the east, and Almeda-Genoa to the south. Consider the following tables which list rental rates for projects which do not participate in a subsidy program (market rent projects) and projects which do participate in a subsidized rent program:
http:www.poconnor.comarticle.asp?id=48