What is Real Estate

Writen by Cecilia Sherrard

There are probably few things in life that are as exciting--or as nerve- racking--as the search for a house. All the good emotions and the bad emotions seem to converge when the house hunting begins. Don't worry, this is a normal reaction, and is found in seasoned home buyers as well as those who are looking for their first home. Buying a home for the first time can bring many questions. Ideally, it would be best to meet with me in my office or even go over your questions on the phone before starting the process. I have put this page together to explain the beginning stages.

Many first time homebuyers go through the (Renting vs. Owning) process. If you're currently a renter, you certainly are aware of the money that you spend monthly and the fact that none of it comes back to you. You also know, when the water heater goes out you just make a phone call! There are pros and cons of course. Owning your own home brings new responsibilities along with a positive financial outcome. It's a long-term investment. You can take advantage of tax credits, appreciation, and your home's equity down the road. When I rented my first home, I remember wanting to do certain things to the home including changing the carpet color. My landlord said 'no' They wanted to keep it 'neutral' for a future tenant.

I also remember going to the local animal shelter to get a kitten. (I already had one cat, which was okay. I was lucky to have that.) The shelter had to phone my landlord for permission! There I was holding this kitten and already falling for it, only to be told 'Sorry your landlord said no.' I had no idea the shelter required owner's permission, and I had never talked with my landlord before about getting a 'Second cat.' So I gave the cat back, and was completely humiliated. I felt like they were calling my parents! Yes I was young, but I knew then, I needed to have my own home. Freedom was my deciding factor. I now have a boat on my front lawn, hot pink carpet and 37 cats. (Okay, I don't really have a boat.)

One of the first decisions you need to make is whether you want to do your house hunting on your own. If you decide to go it on your own, you won't be represented and may not be seeing ALL the homes on the market. If you contact agents for a particular home either by the sign out front, in an ad, or going through an open house, remember, the agent selling the home represents the seller's best interest not yours. If you decide to use an agent, have your own (Buyer's agent.) You certainly wouldn't call upon the prosecuting attorney to represent you in your defense or answer your questions. The more I know about your situation and needs, the better I can assist you. There is no contract to sign while working with me. No fees, no strings attached. That is why it's important to utilize my negotiating skills and knowledge of the market.

Once the decision to buy a home has been made, take the time to prepare before you go on your home search. Yes, it is very tempting to rush out and actually look at houses, but to do so without full preparation can be both disastrous and expensive. You will find that "house hunting" is down on the list.

Get your financial affairs in order first! I can't stress this enough--it will save you an enormous amount of time, aggravation and heartache. Determine what your budget will comfortably allow and stick to it. Don't spend yourself into a 'house poor' situation. Get pre-approved for a mortgage. This will not only give you a clear idea of how much a lender will approve you for, it will make your home buying process a great deal easier (and save a lot of time later). I can provide you a list of reputable trustworthy lenders. (There are a lot of lenders out here, not all created equal.) I often hear people mentioning pulling their credit and worried about losing points, when they aren't even sure they will be buying a home. With so many loan programs out here, people sometimes don't realize that they can actually afford more or less than they thought. Having your credit checked can also bring up any mistakes/errors that you can start to fix now and have solved before purchasing.

Get familiar with the different housing types available to narrow your search. Determine your minimum requirements as well as any desired additional features and your needs and wants. Prepare a 'Must haves' list.

Take note of any items that you don't want in a house. Determine the desired location (schools, work, public transportation, etc.) It's important to narrow down the areas you are interested in as much as possible. Drive around, check the cities local websites, look into area schools and tax rates.

As you are looking, use a scorecard to compare homes. A scorecard is a great tool when it comes time for comparisons (and for remembering which home had which features!)

When you find something you like, your agent should pull recent comparables (Similar homes that have sold) and research the property. This way you know the true value and what an appropriate offer would be.

Maintain your perspective--and your cool! You may find your perfect house on the 1st day--or the 50th. The important thing is to get the home that is best for you! Remember also, I'll be with you every step of the way. Many of my past clients can testify that I am addicted to foundations, plumbing, electrical, roofing and the 'guts' of a home. Through the years I've attended enough inspections and classes to detect potential areas of concern. Make sure your Realtor is educated on the mechanicals of a home.

I can help find flaws in a home, recommend certain repairs, give a basic estimate of work needed, give you pointers on finding a house with a good resale value, and provide you with a list of professionals from insurance agents, to home inspectors. (Reasons to work with a good Realtor.)

I believe good sound advice, personality, experience and genuine care for my clients is what sets me apart and is the reason I receive referrals from happy home owners.

I don't consider what I do sales. I think of it as private representation, counseling, advocacy, and helping people achieve the dream of homeownership. If your agent ever makes you feel 'sold', pressured, or something just doesn't feel right in your gut, get a new one!

Cecilia Sherrard

Realty One-Cleveland Ohio

Cecilia Sherrard is a full time dedicated Realtor in Northeast Ohio. With years of experience and knowledge, she has maintained a multi-million dollar producer status. Servicing areas such as: Westlake, Lakewood, North Olmsted, Rocky River, Cleveland, Brook Park, Parma, etc. Visit her website at http://www.youshouldown.com

Writen by Joel Teo

As mentioned in our previous article, like in value investing in stocks as made popular by Benjamin Graham, money is made in the purchase of real estate investment property. You want therefore to purchase property with good rental yield and that is at a discount relative to the surrounding area. This article identifies three ways to find a below market real estate deal so that you can either resell it later at a higher price or enjoy lower mortgage instalment payments and from that a greater cash flow.

Method #1- Distress sales and foreclosure

The general rule of thumb in real estate investment is that the target property might sell for a price lower than the areas average if the owner is in distress. There are two possible situations that you might want to look out for so that you can negotiate with the owner to reduce their asking price.

Firstly, look out for mortgage foreclosures on property and monitor the property auction sites. Banks may under-finance property meaning that they might not want to risk financing the property and then have to sell the property at a loss during a recession (negative equity situation). So what happens is when the mortgagor (the owner) is in default of his mortgage, the bank would foreclose the property and auction off the property and sell it off. Note that under the common law, while the bank is supposed to get the best value for the owner, this sometimes does not happen and the best way the bank can discharge its liability is to auction off the property.

As we can tell from the above analysis, the bank usually just wants to get the selling price enough to cover the outstanding mortgage and so the reserve price for such auctions may be below valuation prices. Spend some time attending such real estate auctions and it could pay off in helping you get a property at below market value.

Method #2- Migration

When people want to migrate out of a country fast, there is a high chance that they will not be picky about what price the property can fetch. These people generally want to sell off their property fast and the first prospective buyer that appears on the horizon for their real estate would usually benefit from this. On your part, you would want to get an independent valuation of the real estate and then make an offer.

Ann wanted a property near the city's amenities and was looking for such a property. There was a family that was moving over to France and sold it to her at a bargain. It turned out that what that family wanted was hard cash fast so that they could move out. Ann gave it to them and all parties were very satisfied. Thus bargains can be found if you know more about your seller's reason for selling.

Method #3- Look for landlords with attitude problems

This strategy is rooted in human nature and you may chuckle when you hear it. In some areas, some properties are always yielding lower rentals than other places and this might be because of the landlord rather than any other fundamental reason. If the landlord has a bad temper for instance and then finds it hard to get tenants who can stay, might try to entice present tenants to stay with lower rentals. This would therefore translate into a lower valuation for the property. At the point where you appear on the scene, some of these sellers are willing to accept a lower price to get a problem off their hands.

Things to note with this real estate investment method include spending some time with neighbours staying around the property in question to find out any hidden defects, bad tenants or crime related problems that the owner may not be telling you about the area. It may not be all the landlord's fault.

In conclusion, we have spotted three ways that you can take into account when analyzing a real estate investment. Real estate investment can be said to be like any other form of shopping as you want the best quality for the lowest price. But do not be let paralysis by analysis stop you from taking action. Here's wishing you all the best in your real estate investment endeavours!

Joel Teo takes a keen interest in real estate investment as part of a larger investment portfolio. For more tips on real estate investing check out our real estate investment success series at our real estate investing resource

Writen by Teve Torbes

People often marvel at the profits that can be made in "flipping" real estate. They wonder how someone made such a good deal – how did they buy a property for $50,000 and fix it up to make $70,000? There's a simple trick that can help you improve your success if you're looking to invest in real estate: volume bidding.

Most people will only look at one or two houses when they're planning their investments. They don't want to take the time, or they feel like once they've already spent the time investigating a house they need to go ahead and invest in it. Often, this forces them to up the price above what they would really be willing to pay – they feel committed, and they don't want to lose all the work they've done. The trick to making a good profit is not to make this mistake. You can't let yourself get dragged into this process – if you psychologically commit to buying a house, you're not going to get a good deal. You need to set a price that will give you a good profit, make the offer, and walk off to the next house to do the same thing. This won't get you all the houses you want – in fact, many will reject your offer as too low. But if you do it multiple times, eventually someone's going to take it. If you make sure that every bid you make is one you'd be glad to accept, you'll end up getting the good investment deals even if you only get a couple of owners to sell to you.

Teve Torbes is an awesome owner of a advantage flea control site, who knows a whole lot about flea treatment stuff. He has also created a valuable flea bites resource.

Writen by Kate Ray

The real estate sales agreement is the most important document in a real estate property sale. This is the legal document that stipulates all the terms and conditions of the transaction. It is a legally binding contract that states the responsibilities and obligations as well as the rights of both the buyer and seller. A real estate sales agreement shall be void and unenforceable unless it is in writing and signed by both parties.

A real estate sales agreement contains details on the following:

*Parties involved - also known as the buyer and seller
* Description of the property
* Condition of the property based on the property disclosure form
* Conveyance of the property
* Purchase price which the buyer agrees to buy and the seller agrees to sell; amount of deposit; terms; transfer and recording charges; taxes
* Permanently attached fixtures
* Settlement date
* Restrictions
* Buyer's duties and responsibilities
* Seller's duties and responsibilities
* Default
*Inclusions and exclusions
* Restrictions, easements and limitations
* Attorney's fees
* Termite inspection, radon gas disclosure

Like every legal document, it is strongly advised that both the buyer and seller seek legal advice from an attorney who is knowledgeable in real estate law. Before signing any document you must first understand the contract completely. The lawyer can advise you if there are any problems in the contract, or if certain details were not included in the document. Discrepancies such as these could cause delays and may lead to extra expenses.

http://www.Real-Estate-Form-Online.com

Writen by B Shelton

Whether you're buying or selling a home, knowing how house values are determined is in your best interest. Being able to determine house values for the homes viewed will help a buyer determine an inflated price, or a great deal. For the seller, being able to access house values of recently sold homes and knowing how house values are determined will help set an asking price that will attract buyers.

Determining House Values with a CMA

One of the easiest ways of determining the value of your house is through a Competitive Market Analysis. It's the way that professional Realtors and real estate agents determine a good asking price for a home that they're representing. You can consult a Realtor, or you can use the same information and methods that they use to do your own CMA.

Visit your county's web site and check the recent selling prices of similar homes in your neighborhood. That will give you a ballpark idea of the general house values in your community. From there, do a little research to find out just how comparable the sold properties are to your house. By adjusting the average price up or down to account for condition, improvements or other differences, you can come up with a good price for your home.

Have Your House Value Determined By a Professional Appraiser

The most accurate way to determine the value of your house is to pay for a professional appraisal. For between $200 and $300 depending on your area of the country, you can get a professional valuation for your property. While this will get you an accurate value for your house and property, it may not be the determinant for your asking price. If your house is significantly higher in value than others in your neighborhood, you may have to drop your sights a little to stay in range. If other houses in the neighborhood are significantly better than yours, you can tack on a bit to the house's valuation to come up with an asking price.

Find House Values on the Internet

The Internet is a wonderful thing. There are a number of web sites online that will find the average selling price of houses in your area. A visit to www.housevalues.com will submit your information to a local Realtor who will contact you with an estimated value for your home.

Whichever method you use to find relative house values for homes in your selling area, you'll need to make some adjustments to find the best selling price for your home. Specifics that you should consider are the number of rooms, number of bedrooms, size of lot, any particularly desirable traits (corner lot? end of a dead end street?) that could be a selling point, as well as any major improvements made to your home. If the homes to which you are comparing yours offer amenities that yours doesn't, you will have to deduct some value. If yours has features that they don't, like a recent remodel, then you can add value.

While it may sound like a complex process, determining house values is a skill that you'll find important if you're selling a house. It's the best way to price your house to sell.

Brian Shelton makes it easy to sell your house fast. To claim your free report entitled "How To Sell Your House In 7 Days or Less", visit =>http://www.HouseSoldIn7Days.com/

Writen by W. Troy Swezey

If you are thinking about buying a second home, you are not alone. A 1995 survey by the American Resort Development Association found that 60 percent of households surveyed feel they have a likely chance of purchasing a recreational property in the next ten years, a figure that rose 30% from the survey in 1990. The average age for the majority of vacation home buyers ranges from 40-50 years old. Qualifying as the baby boomer generation, this group of second home buyers consists of 80.5 million people out of the U.S. population of more than 260 million. Demand for vacation homes is rising as a result of consumers' increasing desire to capitalize on low interest rates, low unemployment rates and a strong real estate market offering many viable second home options.

When purchasing a second home, many baby boomers seek properties that offer access to recreational areas as well as amenities ideal for retirement living. Finding a fully functional dual purpose second home requires meeting a number of physical and emotional characteristics. A trained real estate professional can help you identify your short and long term needs as well as a home that provides the qualities you require.

When choosing the ideal vacation/retirement community, look for services and features which reduce the stress of owning a second home. Furthermore, finding a home with one floor living or limited stairs will be preferable as you age and as your home evolves from a recreational home to a permanent residence. For example, free standing homes require a lot of upkeep, so properties that include gardening services or rubbish removal such as condominiums or gated communities with town houses are an option worth investigating.

Once you and your broker have identified a second home, the following are tips to protect your second home investment:

• Develop a trustworthy contact who lives near your new home, either a neighbor or a paid caretaker, to keep an eye on the property and collect mail that accumulates. Make sure this person has all of the necessary information to contact you.

• To make the home appear to be fully occupied, ask your caretaker to park occasionally in your driveway. Timers are good for keeping lights on, but their schedule should be varied regularly.

• Set up an answering machine. Change the message occasionally and check the messages often.

• Make sure all doors and windows are locked and secure. Consider installing an alarm to protect your home when you are not there and to serve you when you live there in the future. A quality security system can be purchased through a reputable company.

• Remove all keys hidden around the property.

• Enjoy the time spent in your new second home, for vacation, recreation and ultimately for fulfilling retirement living.

I would be pleased to give you additional information about identifying both an area and home ideal for your fulfilling your second home needs.

About The Author

W. Troy Swezey is the author of "How to Prepare Yourself for Owning a Dual Purpose Second Home." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com or TroyC21@usa.net

Writen by John C Ford

Boston Real Estate Rental Market: It is May and the start on the frenzy rental market. The outlook for landlords looks good I foresee rent rising depending on what of Boston from 5% -15%.

The reason for the rent increases is due to a lack of inventory. In the last few years with condominium conversions the number of available rental apartments has dropped off allowing owners to raise rents and tighten up on concessions. Basically, fewer and fewer landlords will be picking up the fee this rental season. In Beacon Hill most all of the larger landlords are not picking up amy fee for September listings. Another sign we are seeing is that there is a serious shortage of available three bedroom apartments on the market for college students.

A second reason to the rise in the rents is that as interest continue to rise, it is taking some potential home buyers out of the market and thus they are remaining in a renter status.

A third reason is the lack of dorms within the Boston area. Presently, Suffolk is trying to pass a 30 story dorm building in Beacon Hill which is facing some serious road blocks.

Although Boston is lagging the rest of the nation in job growth the increase in University enrollment and the continue growth of the hospitals is boosting renter demand to new highs.

boston real estate

www.fordrealty.net

Writen by Robert Thatcher

Some people thought that owning a house is the best big investment they could ever have. In fact, according to the recent survey conducted in the U.S., 90% of the primary wealth of the people. They never knew that there is something more than what the house can offer — the house plans.

What people never knew is that house plans are the better investment.

Why? It is because the foundation, the structure, and the beauty of a house depend on the creation and assumption of house plans.

Therefore, it is important to spend some time contemplating on making and analyzing house plans. If ever the plan was not made in such a way that it would provided the optimum protection for the family, then that is not an investment after all.

Hence, it is extremely important to pay close attention to the house plan. Factors that are to be considered when making house plans should be well taken into account. Here are five things to consider when making house plans:

1. Location

Before making house plans, it is important to contemplate first on the location of the lot where the house will be built. Is it near the schools? The market? Or is it located in an area where transportations are scarce?

The point here is that it is important to consider the location when creating house plans. The design and structure of the house should match the kind of environment the neighborhood has.

2. Lifestyle

Do you prefer to live in the city, or the quiet suburban subdivision living? You definitely do not want to dig yourself a debt hole just to build a new house that conflict with your lifestyle.

When creating house plans, it is also important to consider the lifestyle. The total impression that the house will have on its visitors should greatly reflect the kind of lifestyle the family has.

3. Size of the family

Many houses now are so small because developers have to take into consideration the paying capacity of the buyers.

However, if ever you have the budget and the time to supervise the building of your new house, it is important to consider first the size of your family. For instance, the number of your children will indicate the number of rooms that you have to consider on your plan.

4. Environment

It is extremely important to consider the kind of environment the neighborhood has in creating house plans. For instance, if the area seems to be a hot spot, it is best to include some plans on proper insulation of the house so as to conserve energy consumption.

There are also cases wherein the type of soil is also important in making a house. Therefore, it is best to try to consider the kind of soil the lot area has when making house plans. What good will the designs be if the foundation of the house is literally weak?

5. Law and the government

There are cases wherein certain laws apply when building a particular house. These are known as the zoning laws. Therefore, it is best to consider them when making house plans because there are some laws that limits the height of the house to be built or the percentage of the allowed portion that the house will occupy in a given lot area.

The bottom line here is that the overall foundation and stability of a house is greatly dependent on the proper creation and execution of house plans. No wonder why it is considered by the others as the bigger investment.

Robert Thatcher is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides house plan resources on http://www.just-house-plans.info.

Writen by Matt McWilliams

The Condition of the Home

Insurers factor in general wear and tear on your home when setting a premium. They will inspect such things as the condition of the roof, porches, decks, and the integrity of the home's wiring system. Because new homes tend to be in better condition than older homes, some insurers will offer up to a 15 percent discount if your home is new.

The Construction of the Home

Certain types of homes are less expensive to insure because they are more resistant to damage. For example, a brick home is preferable because of its resistance to wind damage.

Safety Factors

Many insurers also offer discounts of approximately 5 percent for safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinkler systems. You may also receive a discount if your home is in close proximity to a fire department.

If There is a Smoker in the Home

Because smoking in the home greatly increases the risk of fire, some insurers will offer a discount of about 2-5 percent if no one in the home smoke.

Is the Home in a High Risk Area

Flood and earthquake damage is not covered by standard home insurance policies. Special supplemental catastrophic policies that cover these conditions are available, but can be quite costly. If you are currently covered against these catastrophes through a government plan, however, research coverage through a private insurer. It may actually be lower.

Type and Amount of Home Insurance Coverage Needed

Homeowner's insurance typically covers damage or loss to your home and its contents, but some packages also provide other benefits such as personal liability coverage if someone is injured on your property or theft insurance. Read the fine print. Prices and coverage can vary significantly between packages that appear similar. Make sure you get what you need and use what you get.

Your Desired Deductible

The deductible is the amount that you the policyholder must pay before your insurance company starts paying benefits. The higher your deductible, the lower your home insurance premiums. By raising the deductible, you can save up to 50 percent of the cost of your homeowner's insurance.

Loyalty to Your Company

Insurers will often reduce their rates if you buy more than one type of coverage such as auto and homeowner's from them or if you stay with them over a period of time.

Is There a Retiree Living in the Home?

If you are over the age of 55 and retired, check with your insurer to see if you qualify for a discount. Most insurance companies offer these discounts because retired people are home more and can spot fires sooner than working people and have more time for maintaining their homes. Some insurance companies will offer discounts of up to 10 percent to seniors who qualify.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com

Writen by Steadman Issenburg

Before you put your house up for sale, there are some imported steps that need to be taken to be sure that you both protect your interests and make the most money when you sell. Fortunately, following a simple step-by-step procedure can help you make the best decisions, and here are six of the most important steps to take in the process of selling your home.

1. The very first step is the most important to protect your own interests, and that is to get pre-approved to buy your next home before you have sold your current home. This is important because you don't want to sell your home and then have the unpleasant surprise of finding out that you don't qualify to buy another house that you might want or already had in mind. Any number of things can affect your mortgage approval including a changed financial situation, or an increased debt to income ratio. So get your mortgage pre-approval first and find out for sure from your lender what price range you can afford to buy for your next home.

2. The next step is to call the lender who holds your current mortgage and find out exactly what your payoff figure will be for your current home. Knowing this will be essential for you to be able to know how much money you will be able to have to invest in your next home, as you just simply have to subtract your payoff and any costs associated with selling your home from the fair market value in order to get a general idea of how much money you will have in profit to work with.

3. The next logical step is to find out what your home's fair market value is. If you're using a real estate agent, they will often help you determine this value as a courtesy, and maybe even give you some helpful ideas on how you can increase the value of your house. However, if you want a more exact, unbiased assessment of your property's value, you may want to hire a property appraiser instead. They will usually do an exhaustive research on the property values in your area, that you can then use as a third-party verification of the value of your home in any subsequent negotiations for the sale of the home.

4. Now you need to figure out what it will cost you to sell your home. Of course, if you are using a real estate agent, you'll have to pay their commission for helping sell your house. Other fees can also include property appraisal, inspections, the cost of any repairs that you plan to make, and so on. And don't forget to include any closing costs as well.

5. With all of the information that you now have in hand, you should be able to make your final decision about whether selling your house will be a good financial decision or not. If it is, then you'll need to make the necessary repairs to your home to bring it into tip top shape. Most of the time, a home that needs little or no repairs will command a much higher price in the mind of most prospective buyers. So make your list of needed repairs and either do them yourself or hire a qualified professional to handle it instead.

6. After all needed repairs are done, the last step is to make sure that any cosmetic blemishes are taken care of and your home looks its absolute best both inside and out. When you have your lawn mowed and trimmed, and the inside of your home looking pristine, do everything in your power to keep it that way until the house is sold and the papers are signed.

If you follow the simple six step procedure listed above, it will help you organize the selling procedure to your financial benefit.

Steadman Issenburg writes on many consumer related topics including real estate. You can find california houses for sale and houses for sale in texas and more by visiting our Real Estate website.

Writen by Luigi Frascati

The bubble is coming! The bubble is coming! Yeah, right … and so are the aliens, at least those belonging to the Empire of the Rising Sun.

In the general order of things, when short-term interest rates of U.S. Treasury bonds exceed long-term rates, market sentiment suggests that the long-term outlook is poor, and that the yields offered by long-term fixed income will continue to fall. This generates an inverted-yield curve, typically an indicator of a pending economic recession. So far, however, there has been no inversion of any consequences in the yield terms of U.S. Treasury bonds as measured from the 91 days through the 30 years redemption periods. In addition, long-term rates are behaving very, very well partially because of the tremendous demand for long-term treasuries that has been coming from places like Japan.

Clearly, most real estate investors care about the future of interest rates, and so do most lenders. In the United States, the Treasury yield curve is the first mover of all domestic interest rates and an influential factor in setting global rates. As governments compete with corporations and lending institutions to attract investors in the open financial markets, any bond or debt security that contains greater risk than that of a similar Treasury bond must offer a higher yield. For example, the 30-year mortgage rate historically runs 1% to 2% above the yield on 30-year Treasury bonds. While this is true to a certain extent, it has not influenced the spread between short and long-term rates in the beginning months of 2006. As long-term rates on treasuries are stationary, the recent hikes of interest rates seem to have affected only the short-term bond rates.

The Treasury yield curve reflects the cost of U.S. Government's debt and is, therefore, ultimately a supply-demand phenomenon, central to the Fed's monetary policy. If the Fed wants to increase rates, it supplies more short-term securities in open market operations. The increase in the supply of short-term securities restricts the money in circulation since borrowers give money to the Fed. In turn, this decrease in the money supply increases the short-term interest rate because there is less money in circulation (credit) available for borrowers. Which is exactly what has happened in the first few months of 2006.

But two additional very important events have also occurred, concomitantly. First, Japanese investors have and are snapping up U.S. treasury long-term bonds at a pace almost double that of equivalent long-term Japanese treasury bonds. Secondly, Chinese investors are beginning to do the same thing. Much to the dismay of Beijing, who recently announced its intention to issue long-term treasury bonds worth some 100 billion Yuans to finance mainly infrastructure development, science, technology and education facilities, environmental improvement and ecological conservation projects and technological upgrading in enterprises, Chinese investors and savers prefer not to convert their dollars into Yuans. Even New Delhi is getting into the bond game. India – which all and by itself sits on a pile of some US $150 billion – is purchasing US Treasury long-term bonds and reselling them to Indians for a mark-up.

Bottom line, therefore, is that the only ones who seem to be worried about the American debt are, well ... the Americans. Everybody else seems to be willing to give the U.S. Treasury all the credit in the world, literally. Which is not only a political vote of confidence for Washington but also, in retrospective, makes a lot of sense if one thinks about it. Since, if you are a non-US national sitting on a pile of US Dollars, and are looking to invest into low-risk securities there is no better place to invest your money than into debt instruments guaranteed by, well … the United States Government. Which fact is sure to lighten up with joy a great many Confederate faces in the Bush Administration, who are beginning to see their financial and foreign policies vindicated, at last.

How does all this affect American real estate consumers?

For one thing, if investors of the Asian Tigers are willing to inject their 'Godzilladollars' back into the U.S. economy basing their decisions only on the financial strength and good reputation of the U.S. Treasury, and without a corresponding increase in U.S. bonds long-term interest rates, it means that long-term mortgage rates are not going to increase. Therefore, since adjustable-rate mortgages (ARMs) have interest-rate schedules that are periodically updated based on short-term interest rates, but not on long-term, homebuyers are better off to finance their properties with fixed-rate loans, which are bound to become more attractive than adjustable-rate loans.

Moreover, foreign investors such as the Japanese historically have viewed North American real estate assets inexpensive, if not outright cheap, compared with their domestic real properties. If you are used to pay U.S. $1,200 per square foot for an apartment in Tokyo, nothing that North American real estate markets can throw at you is going to scare you one bit. Chinese holders of foreign real property, on the other hand, have never left North America. They have merely scaled down their real property assets, but there has not been any great exodus towards China. Which fact, all an by itself, suggests how the Chinese themselves eye with uneasiness the prolonged economic boom of the People's Republic. And rightfully so, one might add, in light of the growing discontent, chagrin and resentment caused with each and every passing day by the gap existing between the wealthy Chinese of the coastal regions vis-à-vis the immensely more numerous poor sections of the population in the hinterland.

Thirdly, with a self-sustainable debt financed by foreigners, the Fed's job of managing the equilibrium between inflation and economic growth through the handling of interest rates becomes even easier, to the extent that it makes all the more unlikely the occurrence of the cascade of mortgage defaults with a flood of foreclosures, which in turn would bring prices down – the typical real estate bubble that a great many 'bubbleologists' have predicted, for now with no foundation whatsoever.

Now more than ever it seems that the impact of the present cooling-trend that we are witnessing in North American real estate markets can only be interpreted as the consolidation of markets wealth achieved thus far, and that this trend is expected to settle real estate markets to new, more commensurate pricing levels before appreciation will surge upwards once again. Particularly in light of the fact that there are still plenty of consumers out there – especially domestic buyers – who are ready, willing and able to purchase.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

Writen by Steve Norton

Discover what every landlord should know about finding tenants and why picking the best person is not always as easy as it sounds. The most important decision any landlord makes is deciding who can live in their property. Who will you, as the owner, allow to live in your investment? This decision is so vital to the profitability of any property investment business and affects the business on so many levels that it's amazing that some landlord don't have a formalised procedure to protect themselves from making bad decision.

Let's think about what we're actually doing when we rent a property. Instead of thinking of the property as a monthly income generator think of it as a pile of cash. Cash you have tied up in the deposit and purchasing costs. Cash you hope to gain a regular income from through renting and more cash that you'll receive if you sell the property and realise your capital gains. (Assuming house prices have risen since you purchased). If you include in this the value you place on your time spend finding the property, buying and arranging the rental then we have a very serious investment on our hands indeed.

Now, imagine all that money in real, tangible terms, stacked up in a room in the house and then consider we hand over the keys to someone and say, "See you next year". Now we can begin to see how important it is to select the right tenant. Of course, I'm being dramatic and we do have legal safe guards but I hope that by considering your investment in terms of hard cash (like a professional investor) then you'll treat the question of occupancy very seriously.

There's more to it than just financials. Not only are we trusting the tenant to look after our investment but we're also investing our free time with them. What do I mean? If we are managing the property ourselves and not using a letting agent then we have made a serious commitment in time to look after that tenant. If you have a tenant who does not appreciate your property or does not treat it with care and respect then you run the risk of losing your evening and weekends in maintenance and management tasks. What about rent collection? An unreliable tenant who does not pay on time creates stress and worry. Legal protection lets us all sleep better at night but the practicalities of recouping money and legal costs are a headache we do not need and one that's very avoidable.

Once we know how seriously we need to take the task of finding the correct tenant we can start looking for the very best people. In this case 'best' has two simple criteria. 1) They pay on time and in full 2) They look after the property as if it were their own.

I'm going to discuss three tools we can use to help find good tenants. The first is a long and very comprehensive application form. I ask for as much detail as possible from the tenant. I need all their contact details, ID, proof of current address such as telephone or electric bills, previous addresses and, perhaps most importantly, references from their employer, previous landlord (if they're moving out of home I'll ask for their parents' contact details) and a character reference from a recognised member of the community such as a Doctor or Teacher. Importantly, I always act on these references. I will check with whomever they have given to make sure the details are correct and they can vouch for the applicant.

Secondly, I ask for a larger deposit than the usual 4 weeks rent. Typically I ask for 6 weeks rent (UK law give the tenant an automatic option to sublet if the deposit is too excessive, say more than 8 weeks rent). Paying more upfront is usually a good sign that they are serious.

Finally, I have to feel comfortable about the people. If I can get along with them when the property is viewed and when we talk on the telephone and if I don't have any intuitive alarm bells going off then I trust my own judgement.

At this point you might be wondering about a credit check? Yes this is a great tool depending on the affluence of your potential tenants. Some of my properties are let to people on social security benefits, many of whom I've had to help set up a bank account even. In these cases a credit check would not be beneficial but for better off tenants it can be a worth while exercise.

Once we know how to approach the subject of finding great tenants we can consider why people make poor letting decisions. In my experience the worst decisions about tenants are made in pressure situations. An empty property is very damaging to the bottom line of a landlord. If a property is unoccupied it's very tempting to let the first person who comes along have the tenancy. I know, I've made the mistake myself (several times I'm reluctant to admit). This situation is exacerbated if you find your property is not in demand. If you only get one phone call from your advert in the local paper then you're putting pressure on yourself and your business.

Therefore, the best way to make a good decision is to have a lot of people to choose from. Creating a big list of possible tenants comes from good advertising with good descriptions of you property and its selling points, realistic pricing (even undercutting competition in a renter market) and building a solid reputation as a landlord.

Steve Norton is a landlord with 9 years of experience and owns properties in the UK and Australia. With a clear focus on making the landlord's life as easy as possible while maximising profit more of Steve's insider tips on landlording can be found at http://www.property-management-secrets.co.uk.