Tight Lending Slowing Housing Recovery
According to the latest report of a leading association of real estate professionals, the U.S. housing market's recovery will be slowed down by the tougher lending standards following the current subprime mortgage crisis.
The National Association of Realtors reported that the national median existing-home price is expected to fall 0.7 percent to $220,300 this year.
The median new-home price should increase 0.4 percent to $246,200 this year after gaining 1.8 percent in 2006.
The trade group said: "Higher loan standards will slow the housing recovery,"
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Questions to Ask an Insurance Agent
Every homebuyer should contact his/her insurance company at least once a year to make sure their insurance is up to date.
You should ask your agent the following questions:
1. Do I have enough insurance to rebuild my house?
You should make sure your policy covers the cost of rebuilding. The value of your real estate is not the same as what it would cost to rebuild it in case of damage. Most of the standard policies that usually cover disasters, like fire or hurricanes, do not include flood coverage. You may consider buying additional flood coverage.
2. Do I have enough insurance to replace all of my possessions?
Most standard insurance policies cover personal possessions for about 50% to 70% of the amount of coverage you have on the house's structure. That may not be enough, thus, you should conduct a house inventory to detail everything you own. Estimated the cost of replacing these items. Think about buying a cash-value policy that covers the cost of replacing your belongings minus the depreciation, or a replacement-cost policy that reimburses you for the full current cost of replacing your possessions.
3. Do I have enough insurance to protect my assets?
Apart from protecting your house and your belongings, your insurance also protects you against lawsuits. Your liability insurance covers your legal fees and any additional damage you may have to pay if somebody, for example, sustains an injury on your property and sues you. Talk to your insurance agent and make sure you have enough liability insurance to protect your assets.
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Why Investors Should Consider Real Estate
With housing prices softening and subprime lenders tanking, investors have been running from anything that smells of real estate. But they may be bailing too quickly, as some parts of the sector are still doing well.
New money going into mutual funds that own real estate has plunged to just $2 million a week, on average, from nearly $400 million a week as recently as mid-February, according to AMG Data Services. Investors in droves are also selling off their shares in real-estate investment trusts, the publicly traded stocks of companies that own everything from apartment buildings to medical centers and shopping malls.
But in some cases, jittery investor sentiment isn't a good proxy for the strength of the underlying assets. It is true that residential real estate is struggling in many parts of the country. But commercial real estate is driven by job growth and the economy, and both are relatively healthy. In fact, commercial-building occupancy is growing nationally, while rents are up about 4.25% in the past year, according to Los Angeles-based CB Richard Ellis Group Inc. Midtown Manhattan set a record in March for the city's highest rents ever: $69.99 a square foot, on average.
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Turning a Home into a Dream Home
Springtime is best for introducing any changes. Adding a fresh look to your house does not have to be very expensive and may significantly change the way you feel in your home.
One of the interesting techniques that may help your house gain a unique feel is creating an overall theme for your home. Think about the things that usually make you feel safe and relax. It may be the theme of the ocean, forest in springtime, mountains or something totally different.
The first thing you see is the exterior of the house. Thus, you should remember to include the exterior on your renovations list.
In order to cut down on the cost of the renovations you should focus on the rooms in your house where you spend most of your time. These are typically: a kitchen, a main bathroom and a living room. Your bathroom and your kitchen will certainly gain a fresh, new look if your replace the appliances. As far as the living room is concerned, the space will be best served with a piece of art or a new piece of furniture.
With a little bit of creativity, anyone can change his/her house and enhance the quality of living as well as the value of the house.
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Prevent Your Home From Flooding
The most important step you can take to prevent flood damage to your home is to make sure your gutters are free of leaves and dirt and sticks.
Poor roof drainage is the No. 1 cause of basement leaks. A clogged gutter can cause even bigger problems by concentrating roof runoff water at your house's corners close to the foundation, which can seep through your walls and cause flooding. In fact, clogged gutters may be responsible for cracks in your home's foundation, according to Tom Kraeutler of the Money Pit.
To prevent this, make sure your gutters are tightly secured to your home. You may need to replace the spikes that secure your gutter with gutter screws. To clean clogged gutters, you'll need a ladder and a hose. To clear out debris, you can cut off the bottom half of a gallon milk jug and use it as a scoop to get rid of leaves or sticks.
Or consider gutter guards, which generally cost $3 to $7 a foot. Gutter protection products are available at any home improvement store like Home Depot or Lowe's.
Read more about other ways of preventing your house from flood damage…
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