All About Properties

Manage Property Asset as Business: Tips for Beginner

2009-01-14T21:00:00.000-08:00

If you choose property as your investment (portfolio), and want to buy property that bundled (land and building), the price value will have lots variation. There is land price same as building price, there is land price higher that building that stand on it, or land price lower that the building.

You have to make a diversification, so you do not get high risk, and can get more gain. Diversification in property use location and genre concept, for example office complex, home complex, or ware house area.

If you want resort as investment portfolio, build it at mountain or beach area, or place where people go for vacation or take a rest in weekend. And also warehouse, if it built at the middle of city, it will not prospect. Several experienced investors made ware house n area that close to toll road or highways.

Hotel as investment usually built in the middle of city or vacation area. Hotel has two functions, as overnight staying and also as discussion area. For personal dwelling, it can be built anywhere. But the chosen location should be near transportation center.

Hold and Sell

Manage property as business or become investment its mean that there is a period when the property hold otherwise sell. During the hold period, as business, you can rent it to others. Just make sure that your property located in strategies location. Property location determines how much that you can get money rent. Beautiful location result more money.

If the property not for rent, but hold until the “big day”, that property’s return on investment will low, because the property will damage or maybe the value smaller in the future. Property will always taken care if there are people whom become dweller.

In this case, investor has to have calculation of value increasing. You can use this formula: minimum interest rate at deposit plus tolerable risk of property investment. So, if average interest rate in hold period is 8%, then investor must have return on investment rate higher than 8% and the premium 4%-6%.

Property Cycles

To get maximum sell result and give result as expectation, you have to know property cycle. Usually, property price low when interest rate is high, and economical situation is not good. Property price will high if interest rates low and there are high fund exceed in the bank.

You also must understand how the property business works to get maximal return. For example, you have to understand about property taxation and property law.

Base on several research, property have to hold until three years to get maximum return.

Ban Talks to Students

2008-12-24T15:53:00.001-08:00

As a noted architectural experimenter, Japanese architect Shigeru Ban was a natural choice as keynote speaker to open the student-run HOPES (Holistic Options for Planet Earth Sustainability) conference for 2006 in April. Now in its 12th year, the conference weaves together a mix of architectural scholars, practitioners, and students to promote a deeper understanding of sustainable design issues.

The conference theme this year was "permanence/ impermanence" — the dynamic inherent between things built to last and things built for the moment.

Traditional Japanese architecture relates to the passage of time differently than modern western architecture. Instead of seen as static and fixed in time, traditional Japanese buildings manifest the passage of time as an integral element — being enriched by it as they age.

Yet many of Ban's buildings have short lives. His paper-tube structures have given him a reputation for innovating with an unusual palette. The Japanese Pavilion for the 2000 Expo in Hanover, Germany, for instance, enclosed an expansive space under a spectacular, undulating vault of lashed-together cardboard tubes. The buildings for that expo were temporary, and Ban saw to it that his structure was recycled after disassembly.

With self-effacing grace during his presentation, he rejected the label of "sustainable architect" — insisting that his goal was to "simply save materials." He is obviously an architect with a conscience, as is evident in his work on emergency housing after the Kobe earthquake and the human-caused catastrophe in Rwanda. His paper-tube structures made temporary housing quick to assemble and beautifully simple.

Virtual Construction of the Home

2008-12-14T15:28:00.000-08:00

The new wave of design programs to hit the market has shifted their focus towards the construction of a 3D digital building model. A virtual three-dimensional model is created that contains intelligent information which in turn can be used for not only visualization of the house but also for manufacturing purposes.

This technology delivers the ability to visualize and walk through the home in 3D, giving an accurate representation of how the home will appear before construction ever begins. The advantage here is that the homeowner has less surprises than would have occurred if they were just looking at a paper set of plans.

Moreover, the latest technology allows 3D building models to carry with it behavior, rather than just the appearance of the element. Software developers now give their objects relationships with each other. An example of this would be the moving of a window in a framed wall which causes the stud framing to update and re-apply itself, using a defined set of rules that associate spacing and sizing options.

Technology for the consumer retail market
You don't have to purchase a high-end CAD system to utilize object-oriented technology in the building industry. Talk a walk through your local business supply or stationary store and you may see up to 10 different examples of "design your own home" or "landscaping" software.

A best-known example is 3D Home Design Suite by Broderbund and is one of the leading publishers of home and landscape design. This program provides the ability to quickly and easily design your own home, virtually walk through the interior and create a photo-realistic rendering in minutes. This model can then be exported via DXF to AutoCAD or other CAD packages for the creation of professional working drawings. Although limited in feature functionality, these easy- to-use retail packages raise the ever increasing bar for ease-of-use for the novice user, allowing them to create sellable designs that are beginning to approach the quality of those found in real-estate sales offices.

CAD Technology used in Residential Sales Offices.
The residential building industry revolves around the sale of the home and previously, model homes or expensive artist's renderings had to be created. While this is still prominent, models and digital renderings are now quickly replacing the traditional methods and it is becoming faster and easier to create better quality images. It is also becoming more desirable to actually walk your clients through their home giving "what if" scenarios with options that tie back to a central purchasing systems. As this technology becomes more adopted, it can be conceived that the construction of a model home will eventually become obsolete.

Technology for the Manufactured Home Industry
The manufactured home industry is generally thought of to be broken up into three categories: Modular, Panelized and HUD. Computer technology can arguably benefit this industry more than any other because of the large degree of automation required. These types of manufactures now have the ability to attach large amounts of data to their model homes ranging from the exact cut lists and wall panel diagram information, to a complete bill of materials that link to a purchase ordering system and estimating package.

KML Homes in Cambridge, Ontario, Canada, is an example of a cutting edge manufacturing plant that are using design software to automate their panelized process. Focussing on a light-gauge steel framing system, they currently receive custom plans from Architects electronically (usually in AutoCAD format) and convert them to create a 3D AutoCAD model using a third party add-on product. Once the model is created, KML can now completely frame the walls, floors and roofs and divide them into an efficient panelizing system. This panel data is then electronically transferred to the production floor, where the panels are assembled and shipped to site where they are assembled onto a waiting foundation.

KML estimates that within the past eight months, they have increased productivity by 100% and future implementation will increase that by another 60%.

Conclusion
From some of the above examples, we can observe how computers have definitely changed, and are continuing to change the way we design houses, ranging from the consumer retail market, real-estate offices, to the manufactured home industry.

While the actual finished home product has not drastically changed, the computer technology is increasingly being accepted across many aspects of the residential building industry to change the way we design homes. As the industry continues to evolve, we can expect the changes that computer designs give us to rapidly increase as well.

All About Adjustable-Rate Mortgages

2008-12-06T00:08:00.000-08:00

Adjustable-rate mortgages (ARMs) differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. ARMs also generally have lower introductory interest rates vs. fixed-rate mortgages. Before deciding on an ARM, key factors to consider include how long you plan to own the property, and how frequently your monthly payment may change.

Why choose an adjustable-rate mortgage?
The low initial interest rates offered by ARMs make them attractive during periods when interest rates are high, or when homeowners only plan to stay in their home for a relatively short period. Similarly, homebuyers may find it easier to qualify for an ARM than a traditional loan. However, ARMs are not for everyone. If you plan to stay in your home long-term or are hesitant about having loan payments that shift from year-to-year, then you may prefer the stability of a fixed-rate mortagage.

Components of adjustable-rate mortgages
Adjustable-rate mortgages have three primary components: an index, margin, and calculated interest rate.

* Index
The interest rate for an ARM is based on an index that measures the lender's ability to borrow money. While the specific index used may vary depending on the lender, some common indexes include U.S. Treasury Bills and the Federal Housing Finance Board's Contract Mortgage Rate. One thing all indexes have in common, however, is that they cannot be controlled by the lender.

* Margin
The margin (also called the "spread") is a percentage added to the index in order to cover the lender's administrative costs and profit. Though the index may rise and fall over time, the margin usually remains constant over the life of the loan.

* Calculated interest rate
By adding the index and margin together, you arrive at the calculated interest rate, which is the rate the homeowner pays. It is also the rate to which any future rate adjustments will apply (rather than the "teaser rate," explained below).

Adjustment periods and teaser rates
Because the interest rate for an ARM may change due to economic conditions, a key feature to ask your lender about is the adjustment period--or how often your interest rate may change. Many ARMS have one-year adjustment periods, which means the interest rate and monthly payment is recalculated (based on the index) every year. Depending on the lender, longer adjustment periods are also available.

An ARM can also have an initial adjustment period based on a "teaser rate," which is an artificially low introductory interest rate offered by a lender to attract homebuyers. Usually, teaser rates are good for 6 months or a year, at which point the loan reverts back to the calculated interest rate. Remember, too, that most lender will not use the teaser rate to qualify you for the loan, but instead use a 7.5% interest rate (or calculated interest rate if it is lower).

Rate caps
To protect homebuyers from dramatic rises in the interest rate, most ARMs have "caps" that govern how much the interest rate may rise between adjustment periods, as well as how much the rate may rise (or fall) over the life of the loan. For example, an ARM may be said to have a 2% periodic cap, and a 6% lifetime cap. This means that the rate can rise no more than 2% during an adjustment period, and no more than 6% over the life of the loan. The lifetime cap almost always applies to the calculated interest rate and not the introductory teaser rate.

Payment caps and negative amortization
Some ARMs also have payment caps. These differ from rate caps by placing a ceiling on how much your payment may rise during an adjustment period. While this may sound like a good thing, it can sometimes lead to real trouble.

For example, if the interest rate rises during an adjustment period, the additional interest due on the loan payment may exceed the amount allowed by the payment cap--leading to negative amortization. This means the balance due on the loan is actually growing, even though the homeowner is still making the minimum monthly payment. Many lenders limit the amount of negative amortization that may occur before the loan must be restructured, but it's always wise to speak with your lender about payment caps and how negative amortization will be handled.

King of the castle

2008-11-10T04:48:00.000-08:00

The idea of conserving ancient estates that would otherwise have languished by allowing a relatively small number of people to buy their new homes in converted mansions seems to make sense.

Owners can enjoy the estate with all its open land and spacious interiors, without the vast expenses that would be faced by a single owner, and the estate retains much the same profile.

Wall Hall, Aldenham, Hertfordshire

One such estate is Wall Hall, the former home of John Pierpont Morgan, son of the founder of the American banking dynasty JP Morgan (which, until now, at least, has managed to survive the global money markets meltdown).

Wall Hall, a “gothic revival” mansion near the medieval village of Aldenham, Hertfordshire, was bought in 1910 by Morgan Jr, a keen sportsman and socialite who hosted hunting parties for royalty, politicians and magnates during the eight-week shooting season.

A philanthropist, like his father, he managed the estate in a paternalistic way, building homes for local workers and involving himself in parish matters. During the Second World War, Morgan Jr loaned the house to Joseph Kennedy, then American Ambassador to London, who used it as a weekend family retreat (former US president John F Kennedy spent some time there).
'Old barns and stables have been converted into homes, and impressive new family houses built'

When Morgan died in 1942, Wall Hall was acquired by Hertfordshire County Council and it later became a maternity hospital, then a teacher-training college. Five years ago, the estate was purchased by developer Octagon, which set about creating a prestige new address - but with a heritage look - in this prosperous part of the commuter belt.

Old barns and stables have been converted into homes, and impressive new family houses built - 125 in total. Fifty-five acres of parkland, originally laid out by Victorian landscape architect Humphry Repton, have been restored. The grounds include follies, an Italian garden and lake, as well as refurbished tennis courts.

Conversion of the listed mansion is the final part of the jigsaw. This castellated pile has been divided into seven grand homes - “residences rather than apartments, with names not numbers”, stresses David Smith, Octagon sales director.

The Windsor show home is a 4,000sq ft baronial-style space with a magnificent 45ft-high barrel-vaulted ceiling, stained-glass windows, oak panelling and minstrels’ gallery. It is a complete one-off, with eclectic interior design flourishes, including a suit of armour and a bespoke horseshoe-shaped dining table.

The biggest flat is 6,000sq ft, occupying a two-storey wing of the house. Another home features a silver vault, essential for bankers still in receipt of a bonus. Interiors are tasteful and good quality but not architecturally cutting edge. Octagon says the show home is likely to appeal to an unorthodox person with a sense of fun. For more information on Wall Hall, call 01923 850680.

INVEST YOUR WAY TO RICHES

2008-11-03T01:27:00.000-08:00

by Lim Lay Ying
Property Times, New Straits Times
10th September 2005

arren Buffett, the world’s richest and most successful investor, has this message for those who want to be rich : “Don’t think you have to be wealthy before you can be an investor. You have to learn to be an investor if you want to become wealthy”.

Investment – in any form, is after all about making your money grow for you. Whether they are in paper assets such as, stocks, bonds, mutual funds, fixed deposits, and investment-linked insurance policies, or in the form of real estate where income is derived from rents collected, or gains from capital appreciation, investing wisely will help support the lifestyle you would like to live over the long term.

Investing in real estate is an option that should be seriously considered because it does not necessarily call for large initial capital outlay. A RM100,000 piece of property for example, can be acquired with a fraction of the consideration sum (or less, if you can convince the bank to extend you a larger margin).

A RM10,000 to RM20,000 down payment today will steadily grow into an equity of RM50,000 to RM100,000 over a period of ten to twenty years. And during this same period, your rent collections could possibly increase by 50 percent or more if you’ve picked an emerging hot location. The property is also likely to appreciate substantially over time.

Be Market Savvy

Even in bouts of down cycles and recessions, rents have seldom fallen drastically. During such periods in fact, with less people buying properties and new supply cut-back, the rental market is usually quite well sustained.

When good times come round, rents are pushed up by rising employment, income levels, and heightened prosperity. In addition, those who have earlier held back property purchase and were either renting homes or shops, or involuntarily living with others, would start to look to buy.

Therefore, owning a piece of real estate – particularly one that is in a fast appreciating location, offers an investor the opportunity to increase his or her wealth by trading up to larger or more expensive properties. In the process, this enlarges his or her wealth and at a faster rate too.

By putting in some effort, and having same basic knowledge so that you can be market savvy, will open up a wide array of real estate opportunities to help your investments grow:

* Buy properties at bargain prices, especially if they are acquired in a recession.
* Acquire properties with little, or sometimes even none of your own cash through creative financing.
* Improve properties so that they can command higher values.
* Boost rents and retain tenants through attractive furnishings and prompt response to complaints and requests.
* Trade up, or convert the use of the property to generate more profits.
* Treat your properties like ATM machines by refinancing them to pull out cash for other investments.

To profit from this list of opportunities, just take note of the following:

1. Select the right location
The old adage ‘location, location, location’ will never fade as far as real estate investment is concerned. Properties located in established and preferred localities will always perform. Prices of residential properties especially, will usually move up when land close to offices becomes scarce as most people tend to congregate nearer to their jobs. Thus, capital appreciation will be more assured in such areas where job growth is fast and land availabity is limited.
2. Check out the developer
The ability to complete and hand over a project on time does not entirely guarantee that a developer is reliable and responsible. The track record of the developer should be critically assessed in terms of quality of construction, promptness in service – in particular for repair and maintenance tasks, and quality of property management of the premises. Well managed and maintained properties have greater appreciation potential.
3. Scrutinize the designs
Attractive and functional designs or properties determine the future potential gains from the investments. Details such as the density of the scheme, sufficient car parking facilities, the type and level of security services, privacy, and views, are some of the pertinent criteria that need to be checked out prior to investing in the property.
4. Gather market information
Information on current rent levels, values, tenant profiles, and vacancy rates, will help determine whether the investment can yield attractive returns, generate positive cash flow, and potential capital gains.

Today, there are still bargains around – bargain prices, bargain deals packaged with complete furnishings and fittings, and bargain financing. And you don’t need to be wealthy to be an investor. But you can become wealthy if you start investing.

Building A Custom Home The Process from Start to Finish

2008-10-10T19:05:00.002-07:00

For some, the thought of building a luxury custom home can be overwhelming, but by hiring the right builder, everything falls into place. Building a sound foundation based on trust is the most important piece of the puzzle. The other pieces automatically fall into place when the general protocol described below is followed.
According to John McGarvey, president of McGarvey Custom Homes, “Each step in the schedule is a ‘mile-stone’ and a key point of communication between the builder and client. With innumerable decision points along the way, a qualified builder needs to guide and educate the client making sure the process goes as smoothly as possible with no surprises.”
First things first – choose a reputable builder who is qualified to handle the complexity of building a luxury home. Everything else pivots around this decision. Make sure you trust the builder 100 percent and that there’s chemistry from the start.
The builder needs to be involved from day one. Hiring the builder before the architect is easier and more economical for the simple reason that the builder has lots of experience and technical insight into the building process. Don’t put the cart ahead of the horse.
Choosing an architect who can translate the client’s visions into reality is the next critical step. Just as each project is different, and different builders fit with different clients, the same goes for choosing an architect, landscape designer, pool and hardscape designer and interior designer.
“Architects have different architectural strengths and styles. Choosing an architect goes beyond ability and style,” says McGarvey. “Personality and compatibility are an important part of the formula. We give our clients a few suggestions, but ultimately, it’s their home and it’s up to them who they choose.”
Once the players are in place, it’s time for the first meeting between the client, builder and architect to establish the premise for the home and the initial budget. “Preliminary drawings” of the floor plan are drawn up with the size and flow of the home designed in correlation to the client’s needs. These hand-drawn drawings go through several revisions before being made into architectural Computer Aided Design & Drafting (CADD) drawings.
The next milestone is for the builder, architect, client and interior designer to layout the standard furniture pieces onto the CADD-generated floor plan taking into account furnishings for particular rooms, varying proportions of furniture in relation to the room and any existing pieces the client wants incorporated into their home. Based on the furniture layout, adjustments – expanding or adding space – are made to the original CADD drawings.
Subsequently, the revised CADD drawings go to the “60 percent” phase detailing the exterior elevations, roof design and window placement.
The builder now plans the roof truss lines and the landscape, pool and hardscape designers are brought in.
At the 60 percent stage, a preliminary take-off of the hard surfaces – carpet, stone, wood and tile – is planned in order to make slab projections. At this stage, based on the projected square footage for windows and doors and flooring selections, the builder breaks down all the numbers and is able to prepare a more definitive budget. The fee structure for 90 percent of custom homes is based on “cost plus builder’s fees.” This way, the client sees updated invoices on a monthly basis and is always in the loop when the budget is adjusted.
After the take-offs are done, interior architectural detailing and structural planning, such as niches, ceiling details, floor tile diagrams, columns, kitchen and bath plans, built-ins, HVAC, electrical and plumbing, etc., are planned. If the client is using an interior designer, now’s the time that they get involved.
After the truss detailing and take-off drawings are done, it’s time for the architect to generate what are known as “100 percent” drawings. These drawings are essential for the structural engineer, HVAC, electrical and plumbing subcontractors and land survey team to work off of to complete the structural planning for the home and to certify the plans for permitting.
If the home is being built in a private community, the builder will get the exterior elevations and materials approved by the community architectural review board before obtaining county and state permits.
People often cringe when they hear the word “permitting,” but it’s a breeze for the builder who is meticulously prepared and organized. The more complete the drawings – structural, HVAC, roof truss, driveway curve cuts, pool and fence, to name a few – the easier the permitting process. Manufacturer’s data, including window and door specs, paint colors, roof tiles and hurricane-compliance plans, should also be included in the packet, as well as the builder’s notice of commencement.
With permits signed and ready to go, it’s time to start placing orders, finalize construction schedules and build a house! For the next 12 months, with hundreds of different activities incorporated, the client can choose to what degree to be involved or not.What is important is that the builder has a pulse on the entire project and that the company oversees every step of the construction progression.
Different environments present different challenges. In Florida, it is imperative that the builder be proactive and knowledgeable about mold and water infiltration and what to do to prevent them.
“Waterproofing and properly installed ‘vapor barriers’ to prevent moisture from entering the home are key factors to building a sound home and safe environment,” said McGarvey. “We use rigid insulation, like isonene, on the inside and an elastic, flexible waterproofing paint on the exterior of the home to fight the elements of nature.

“In all of our homes, the HVAC is an important component in the fight against mold. We make sure that the air is dehumidified before it enters the home by increasing the pressure of the inside air to reduce the overall humidity.”
The house is built, but before it becomes a home, there are a series of extensive quality checks and assurances to ensure that everything is operational and that all the pieces of the puzzle fit together perfectly. “Ten years down the road, the home we build today may have had more than one owner, but it will always be a ‘McGarvey’ home. We are perfectionists and have unparallel standards of excellence, and it’s our responsibility to make sure the job is done right,” said McGarvey.
Building a luxury custom home doesn’t end after the client takes their final walk-through. Customer service and care is what sets one company apart from the others. At McGarvey, they understand that builder service after completion is the key to building a long lasting, trusting relationship with their homeowners.
They have benchmarked the parameters for excellence in customer service by introducing the “McGarvey Custom Care” program where a customer-care technician visits the homeowner for one year on a once-a-month basis, for an eight-hour “honey-do” project day. Picture hanging, minor plumbing and electrical tasks, power-washing, light furniture moving, light painting, whatever the homeowner wants, the homeowner gets is the McGarvey promise.
“Our goal is that every custom home has its own personality and that it’s delivered on time and on budget,” says Dan Gerner, executive vice president of McGarvey Custom Homes. “We strive to build a home that will exceed our customers’ expectations, a home of the highest quality that delivers long-lasting value and wonderful memories for many years.”
by Marla J. Ottenstein

For information on building a custom home call:

McGARVEY CUSTOM HOMES
27599 Riverview Center Blvd., #105
Bonita Springs, FL 34134
239 992-8940
www.mcgarveycustomhomes.com

Building A Custom Home The Process from Start to Finish

2008-10-10T19:05:00.001-07:00

Restoring the Past The Historic Everglades City Hall

2008-10-05T20:09:00.000-07:00

Originally built in 1928, the historic Everglades City Hall was almost completely destroyed in 2005 by the ravages of Hurricane Wilma. In the winter of 2006/2007, the once stately building was lovingly restored to its majestic stature with funds raised by the dedicated citizens of Everglades City, Florida.

Creative Tile & Hardwood Floors of Naples and Sarasota, Florida was commissioned to participate in the $3.5 million dollar restoration, which not only required preserving the historic integrity of the original building, but also bringing the facility up to code and into the 21st century.

The challenge was to find a durable and stable hardwood flooring that would withstand the test of time and be as historically accurate as possible, thus replicating the building’s original pine flooring.

For this important project, Creative Tile & Hardwood Floors selected a natural, reclaimed Heart Pine flooring from Ua Floors’ Olde Charleston Collection, an expansive array of engineered wood floors. The company specializes in woods that have been salvaged from abandoned textile mills, distilleries and warehouses.

The flooring for the Everglades City Hall renovation came from a deserted Cannon Towels factory in North Carolina and was hand-selected, piece-by-piece, for its rich tonal quality, distinctive graining and subtle nuances, all which were characteristic of the building’s original wood flooring.

According to Steve Agius, vice president and general manager of Creative Tile & Hardwood Floors, and a 20-year veteran of the hardwood flooring industry: “The beauty of using an engineered wood flooring is that the planks are actually built to endure extreme climatic variances such as humidity and heat. In addition to its proven durability and flexibility, engineered flooring tends to be more impact resistant and comfortable to walk on or stand on for long periods of time.”

Utilizing an engineered hardwood flooring, which consists of a thinly-cut veneer of the original wood flooring, backed with multiple layers of thicker marine-grade plywood, is also considered to be environmentally responsible in terms of green building. Since the original planks are being reused, or in “green terms,” renewed, the end product is an authentic wood floor that combines aged materials with new technology.

Because of its environmental impact, green building, once thought to be a trend, is no longer the exception, but rather the industry standard for being the most appropriate and conscientious way to build. Using recycled materials such as old flooring, bricks and tiles in new construction and renovations is fast becoming the only way to build.

“Using reclaimed materials gives people a sense of security and a connection to the past,” says Agius. “Over the past few years, the popularity of using recycled hardwoods, which are typically distressed and slightly marred, has grown.

“Flooring can make a tremendous design statement and create an feeling of comfort - both physically and emotionally - for the homeowner, or in the case of commercial construction such as the Everglades City Hall, the general public.”

Agius also notes that in addition to the increasing popularity of using renewable hardwood flooring, many manufacturers have begun to think about the impact of the industry on the environment and have begun to aggressively adapt eco-sustainable practices and strict forestry management into their everyday business acumen.

“The consequence of preserving our forests is not a temporary way of thinking,” notes Agius. “It doesn’t matter if the flooring is being engineered from salvaged planks or directly milled from the forest, it is our responsibility to constantly think about the impact of our actions on the environment and how we can positively effect the preservation and/or regeneration of our natural resources.”

For more information, or to schedule a private consultation, please call or stop-by the Creative Tile & Hardwood Floors showroom in your area.

Quality Design

2008-10-05T19:49:00.000-07:00

Remodeling a home is a long-term investment - one that will enhance a client’s lifestyle and the value of their property. Therefore, choosing a quality contractor is an important decision.

Founded in 1989, Progressive Builders, Inc. is a full-service Design/Build/remodeling company located in Fort Myers, Florida. Over the years, Progressive Builders, Inc. has refined the design/build process to ensure the highest level of client satisfaction. The process includes a team of professionals that are committed to high standards. Creating beautiful spaces from concept to completion is their specialty.

The professional design team includes highly trained superintendents, a project coordinator, project manager, an interior designer, and office personnel. The team works together, under one roof, to meet the needs of the client. The client deals with one source, making possible the “One Company, One Answer” concept.

Typical jobs include room additions, functional and stylish kitchen renovations, resort-style master suite remodels, whole house makeovers, and outdoors entertainment spaces.

The design process begins with a scheduled appointment with our in-house professional designer. At this meeting, the designer will discuss the client's needs and wants, while evaluating the existing space. The goal is to integrate the renovation seamlessly with the existing home.
The designer will conduct an in-depth interview with the client. The questions will reveal the intended use of the space, the client’s favorite color and many other important details that will be invaluable during the design stage. This in-depth interview will give the interior designer an idea of who the client is, in order to help decide what the client wants.

Visual references are key in the design process. When a client pulls a photo from a magazine or the internet of a table, lamp, paint color, or stucco finish that they would like to see in their home, a designer can better understand the clients likes and dislikes. These visuals help the designer see what the client sees.

Once all the information and visuals have been discussed, the interior designer presents the client with a concept. The concept is a sketch, free-hand drawing, elevation by scale, or a rendering. Clients can visualize what their project will look like when the job is complete. Progressive Builders utilizes this design step to ensure every client gets exactly what they want.

The professional designers and personal shoppers of Progressive Builders will assist the client with material selection and design elements, giving the client multiple options that will work best in their space.

“Our team is a concierge service. We try to give our clients everything they need to make the decisions easier,” says Interior Designer Laura Fernandez, of Progressive Builders, Inc.

Architecturally-minded, the job of the interior designer is to advise the client on what will work best and what will enhance the overall look of the project. Advice is given based on an analysis of the project; the type of home (Mediterranean, Old English), the architectural elements belonging to that style and era; scale, budget, and weather are also factors (Florida’s weather conditions are important when working on an exterior project.)

“Exceptional design is achieved when the inspiration of a family’s unique lifestyle and personal taste are blended in a masterful balance of light, color, texture, and form that transform an empty space into a dynamic environment with a distinctly personal style,” says Fernandez. "Our mission is to provide the very best remodeling experience possible. The creation of value and a lifelong client will be the by-product of our dedication to excellence."

Should 'Skin in the Game' Be a Requirement to Play?

2008-09-22T02:00:00.000-07:00

ou have probably heard a variation of this complaint: "In our current home-loan system, nobody worries about the risk because they pass it on to the next player in the chain. If everyone in the chain had skin in the game -- something to lose if the loan goes bad -- we wouldn't be in the mess we are in now."

A long chain of risk transfers is certainly a feature of our housing finance system. In a typical scenario, where loans end up as collateral for a mortgage security, a mortgage broker shifts the risk to a wholesale lender, who transfers it to an investment banker, who transfers it to multiple investors. The broker at the head of the chain usually knows the most about the risk, while, often, the investor who ultimately bears the risk knows the least.

Some knowledgeable observers have suggested that the government should enact the following rule: Every player in the chain must have skin in the game. I think this is a bad idea.

The Principal-Agent Problem

Economists term situations where one party makes a decision for another, without having the same stake in the outcome of the decision, the "principal-agent problem." It is pervasive in our society. Principals protect themselves by establishing rules that their agents must follow, and control mechanisms designed to assure that the rules are being observed. Sometimes these mechanisms work, sometimes they don't.

At the top of the mortgage chain, skin in the game is one of the control mechanisms used by principals. Investors purchasing a mortgage security may require that the investment bank issuing the security retain a piece of it. The investment bank, in turn, will require that the lenders from whom it purchases loans agree to repurchase those loans that don't meet the investment bank's standards.

The rules -- and enforcement of them -- became lax during the boom years, but now they are extremely stringent (wherever the market continues to function, that is). Even if government intrusion were warranted here, which I don't believe it is, the timing is terrible.

The Bottom of the Chain

At the bottom of the chain, lenders set underwriting rules -- conditions that loans must meet to be approved -- that agents (brokers and loan officers) must follow. A lender employee called an underwriter, or an automated underwriting system, must sign off on a loan before it is approved. The control mechanisms for enforcing compliance, however, are weak.

Wholesale lenders can't require that mortgage brokers have skin in the game. The typical broker does not have the money to buy back loans that don't meet the lender's standards. About the only thing a lender can do is take a miscreant broker off its approved list, but that won't prevent the broker from doing business elsewhere.

The inability of lenders to control brokers is one reason why some observers would not be unhappy to see brokers disappear, and some of their proposals seem to have that as an unstated objective. They appear to believe that eliminating brokers would eliminate the principal-agent problem at the point-of-sale.

Alternative to Mortgage Brokers

But that is not the case. The alternative to mortgage brokers is loan officers, with whom lenders have a principal-agent relationship that is basically the same as the one that exists in their relationship to mortgage brokers. Loan officers are lender employees who are compensated on a commission basis, whose income depends entirely on the number and amount of loans they produce, and who have no stake in whether or not a loan turns out to be good or bad.

I remember vividly that, soon after I joined the board of a large savings and loan, the CEO gave the board a list of the most highly compensated employees of the association. To my surprise, the CEO's name was third on the list, and I did not recognize the two names at the top. They turned out to be loan officers.

I found that there was no way to cap the compensation of loan officers, or to force them to put their skin in the game, even though they legally are employees. Lenders who have tried to base commissions on loan performance have found that their best producers quit to join other lenders.

The only way to get skin in the game at the bottom of the financing chain where loans are originated is to revert to a primitive system, similar to those found in many less-developed countries. In such a system, lenders are either individuals or very small firms where the owner is CEO and makes all loan decisions. Every player in the chain has skin in this game, and the potential for boom and bust would be negligible. The trouble is, systems of this type typically offer only one type of loan, as well as high interest rates, short terms, and large down

World's Most Expensive Cities

2008-08-31T22:25:00.000-07:00

In 1998, Moscow was in crisis. More than 100,000 Russians took to the streets as a slew of banks--and the life savings of millions of citizens--went bust.

But just a decade later, the global commodities boom has made Russia flush with cash, and Moscow has become a pricey place to live.

That's the finding in Mercer's 2008 Worldwide Cost of Living Survey. Moscow tops the list with a score of 142.4, up 6% from last year--and 42% higher than New York, the most expensive city in the U.S. The Russian capital is followed by Tokyo; London; Oslo, Norway; and Seoul, South Korea.

New York fell from No. 15 to No. 22, thanks to the dollar's protracted woes. Los Angeles is the second-priciest city in the U.S., but Hollywood's denizens can't cry poverty just yet: At No. 55, Los Angeles is cheaper than the best neighborhoods of Lagos, Nigeria (No. 30); Almaty, Kazakhstan (No. 44); and Zagreb, Croatia (No. 49).

"The decline in the ranking of all U.S. cities is due to the weakening value of the U.S. dollar against most major world currencies," says Mercer's Mitch Barnes, a principal at the firm. "The dollar has been declining steadily for the past several years, which has resulted in an overall decrease in the cost of living in 19 U.S. cities, relative to other major global cities studied."

Behind the Numbers

The survey covers 143 cities across six continents and measures the relative cost of over 200 items in each place, including housing, transport, food, clothing, household goods and entertainment. The survey is used to help American government agencies and multinational companies determine living costs for their expatriate employees, who usually demand a relatively high quality of life.

"Companies may assign high priority to expansion in these economies, but may have to deal with inflationary pressures due to competition for expatriate-level housing," says Yvonne Traber, a research manager at Mercer.

In the wake of the Federal Reserve's bailout of mortgage lenders Fannie Mae and Freddie Mac, the dollar has continued its slide, falling to a record low against the euro earlier this week. While that's bad news for Americans traveling abroad, it could mean that more international businesses will set up shop in the U.S., where posh cities are suddenly becoming much more affordable.

"The U.S. dollar's loss of value may serve to attract globally mobile executives to business centers such as New York, Chicago and Los Angeles," says Barnes. "The difference in cost of living can be significant, particularly for those executives with families."

Most Expensive Meccas

As for Moscow, prices in the Russian capital show no signs of dropping. The global commodity boom continues to fatten the pockets of local tycoons, and the ruble has appreciated 8% against the dollar since January.

Moscow is home to 74 billionaires, the most of any city in the world. Its three wealthiest citizens (Oleg Deripaska, Vladimir Lisin and Roman Abramovich) each possess fortunes in excess of $25 billion. And Russia's super-wealthy are just getting started: 13 of the country's billionaires are under the age of 40.

Founded by the Romans nearly 2,000 years ago, No. 3 London is an ancient stalwart when it comes to pricey cities. Though it slipped from last year's No. 2 spot, it remains extremely expensive--even a ride on one of the city's vaunted double-decker buses costs $5.89.

And while Japan's economy is stagnating, Tokyo is as expensive as ever. For American travelers, the city's real estate prices are the highest in the world--a two-bedroom luxury apartment costs over $5,100 per month, about $600 more than a comparable pad in Moscow or New York.

Technology That Can Help With a Home Sale

2008-08-31T22:20:00.000-07:00

n a recent story called the Virtual Vacation Home, I wrote about how some vacation home owners are using inexpensive Webcams to market their homes on the Internet. Since the vast majority of buyers and renters start looking for a place on the Web, it makes sense to add a webcam to your home's online profile.

But Webcams aren't the only unusual way that sellers and landlords are using technology to make their homes stand out. In fact, many owners are borrowing tools that were originally marketed to real estate agents to make them more interactive and compelling. Here are three that are becoming more popular:

Virtual tours. Though they take a lot of time to view and sometimes make you dizzy, virtual tours are nearly ubiquitous on real estate agents' Web sites these days. That wasn't true a few years ago, because the tours required hiring photographers with special cameras, at costs running into the hundreds of dollars.

But costs for professional photographers have dropped dramatically. And with a rotating tripod, a photo-stitching system, a digital camera -- and a lot of patience -- do-it-yourselfers can produce virtual tours, too.

Once you have the video in hand, you can upload it on your home's Web site, or on one of several sell-it-yourself Web sites, like ForSaleByOwner.com and BuyOwner.com.

Real Estate E-Cards. Hoping to cash in on the e-card craze, August Gilges, an entrepreneur in Portland, Ore., came up with the "real estate e-card": a short photo montage of a property set to background music, from a crackling fire to a string quartet. Though an e-card might seem too commercial for sending season's greetings to Grandma or declaring your love to your Valentine, it's a relatively low-key way to alert potential buyers that your house is for sale, particularly in the traditionally slow times around major holidays. Single-use cards themed to an event (think a backyard grill for Memorial Day) cost $20, while an annual subscription with unlimited use of all the cards is $150. Or, if you're happy with a single image rather than a photomontage, you can make up a card for free on Ecards-gallery.com.

Talking signs. On their face, chatty yard signs are simple, even mysterious. Interested parties can call a toll-free number and plug in the digits for more information, like location, price, size and maybe a description of the built-in backyard grill or the Tara-like staircase. The spiel runs 24 hours a day.

That's an advantage for sellers, who don't have to run out and replenish printed listing sheets in a plastic box on their front yards. But it's also a risk, since buyers who don't have cell phones handy might lose interest and drive on by.

Nevertheless, talking signs have become so cheap in recent years that they're worth considering. For example, Front Royal, Va. company Home Phone sells a 18- by 24-inch talking yard sign for $10.95, plus a $2 monthly fee.

Best of all, they allow an owner to keep embarrassing details, like whether the house will be auctioned or is in foreclosure, out of sight of the neighbors...if not out of earshot.

In Various Ways, Economists Try to Find Right Price for a Home

2008-08-31T22:02:00.000-07:00

Let’s be honest. No one actually knows when and where the housing market will bottom. Experts have been proclaiming the bottom is now — this very moment — since Alan Greenspan notoriously predicted the worst was over way back in 2006.

But there are some signs that might indicate the end is nigh, and those signs paint a picture of what that bottom might look like.

The New York Times asked economists across the country to share the data they use to figure out how much houses in regional markets are overvalued, a calculation that approximates where the bottom may be. Models built on these variables show that while some markets — such as California — are on a road to recovery, others — such as south Florida — have a way to go.

These signs cannot possibly tell the whole story, especially since they point more toward where prices should be valued than where they will be. But these measures are nonetheless helpful to anyone buying, selling or borrowing against their home sweet home.

“Anybody who says they know when it’s going to end with confidence is delusional,” said Karl E. Case, an economics professor at Wellesley College and co-creator of the Case-Shiller home price index. “But yes, you can get a sense of where things are going.”

One way to envision the bottom would be to look back at where prices were five or 10 years ago, before the current price run-up. There are some better ways, though.

Noting that home prices have outpaced inflation in the past, one can calculate how much houses appreciated annually in the decades before the bubble, and then figure out how far out of line prices are now. Edward E. Leamer, director of the U.C.L.A. Anderson Forecast, has crunched these numbers for various regional markets.

In Ocean City, N.J., for example, inflation-adjusted house prices rose about 1.6 percent a year from 1988 through 2002. Compared with what this rate would predict, the city’s houses in the first quarter of this year were overvalued by 51 percent. Over the previous year, they had fallen 0.6 percent; at this pace, Ocean City house prices will be at the right level in about 13 years. The model foretells eternal decline for some cities. It predicts that Kingston, N.Y., will not return to “normal” for almost four centuries.

Part of the reason these numbers may be hard to swallow, Mr. Leamer says, is that they do not capture the many differences between the economic conditions of the 1980s and today, or even 2002 and today. Income, mortgage rates and popular vacation spots have changed since then, as have myriad other factors deeply entwined with house prices.

Many experts look to price-to-rent ratios to estimate where house prices should be in a region. Because renting is a direct alternative to buying, and because rents tend to be less volatile than prices, rents are often considered to be a good shorthand for figuring out the intrinsic value of a home.

In the past decade, the price-to-rent ratio in many markets has exploded, indicating that people have been paying much more for their homes than the property is actually worth. From 1994 to 2002, for example, Phoenix had an average ratio of 11, according to data from Moody’s Economy.com. After peaking in the last quarter of 2002 at 22.5, it cooled to about 17.3 in the first quarter of this year.

This measure is popular but problematic because some economists say many of the homes that people rent (apartments in multifamily buildings) may not be comparable to the types of homes that people buy (single-family houses).

Another ratio that housing economists watch is the ratio of home prices to per-capita income. This is telling because it shows whether Americans can actually afford the houses in their area.

Looking at previous peaks and troughs in the income ratio can provide an idea of where the housing market will bottom in a particular city. In Boston, for example, the housing market peaked in the late 1980s around 11, and then hovered around 7.5 when it bottomed in the late 1990s, according to Mr. Case. This time around, it peaked at over 12, and in the first quarter of this year, it was just over 10.