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So you’re getting ready to move into a new home - congratulations! Make this transition as easy as possible by reading these handy tips on getting you and your family prepared. There’s a lot that must get done when you move into a new house. Some things can easily be overlooked. You don’t want to have a bad moving experience and sit there after the fact realizing what you should have done differently.

Let’s get prepared to move! The first thing you should do is to decide what you should and should not move. Think about having a garage sale. Not only will you lighten the load for your move, you’ll earn a little cash at the same time!

Make sure to get estimates from several moving companies or truck rental companies, depending on how you plan to make the move. I was quite surprised during my last move to find that costs varied greatly from one company to the next.

Plan your travel itinerary and make any transportation and lodging reservations in advance. Make sure to leave a copy with friends or family.

Transfer your checking and savings accounts. Many financial institutions will be happy to open your new account by mail. This will save you a step when you arrive and have other things to deal with - like unpacking!

Request medical records from doctors and dentists, including eye glass prescriptions, dental x-rays and vaccinations.

Obtain your children’s school records to make for an easier transfer.

One step that is guaranteed to save you headaches is to draw up a floor plan of where your furniture should be placed. This will help avoid confusion for you and your movers once you arrive.

Remember to pay any existing bills and close out any local accounts.

If this move is employment-related, record expenses incurred during your house-hunting trips and any other moving expense. Some of these common expenses are tax deductible.

Moving is a stressful time for almost anyone. Use these tips to make your move a little more enjoyable. After all, you’re moving into a new house, this should be an exciting time!

Kris Kombrink has been working in his family-owned real estate business since 1995. Specializing in Geneva, St Charles and Batavia Illinois residential real estate his team stays on top of the latest trends while maintaining superior customer. Learn more about his team at http://www.kombrink.com or email kris@kombrink.com.

[tags]moving,tips,advice,real estate,movers[/tags]

All real estate market participants, whether homeowners or investors, look at their purchases as an investment. Whether they feel it is the home of their dreams or a place that will generate a good rental income, property owners want to be able to sell it for more than they paid for. Preferably, for a lot more. It is next to impossible to be wrong in times of price appreciation, as markets all over North America have shown these past few years. During market expansions, buyers typically exhibit the ‘King Midas Syndrome’: like the famous mythological king, in fact, they all display that miraculous ability of being able to turn anything they touch into gold.

When markets hit a snag, however, property purchasers will have to be more selective about what they choose to buy. One segment of the real estate industry which is often overlooked by investors and yet is possibly the most lucrative, involves the purchase and sale of small free-standing professional office buildings. In the industry, we refer to it as ‘Blue Chip Real Estate’. The definition is borrowed from the Stock Market, since Blue Chip Real Estate is the general description of interests in land that are well established, with stable earnings and no extensive liabilities - just like Blue Chip Stocks.

Small professional office buildings are typically leased to established professionals business entities such as proprietorships, partnerships, incorporated firms or any combination of the above, as well as to top tenants such as banks. They are valued by investors seeking safety and stability, though prices are usually high. Typically, Blue Chip real estate holdings are perceived to offer reliable returns, high yield and low risk. Additionally, most of them are strategically located adjacent to residential neighbourhoods, yet in commercially-zoned strips.

Small professional office buildings are sought after by a variety of professionals, especially in the medical industry, for the amenities they offer, which enhance their practice and professional images. For instance, many of these buildings are built with ancillary storage or utility space that can be used for a variety of reasons, provide rooftop or basement HVAC systems, or even nicely appointed consultation rooms in which clients and audiences will be more relaxed and potentially more receptive to presenters.

What makes small professional office buildings so particularly prized by investors is the fact that there is a shortage of them. As they offer more and better facilities, construction is typically more expensive than normal. The plus side of things is that market values of free-standing professional office buildings never fall, because there are not that many and they are always in high demand - specifically because tenants almost never leave.

In addition to generate highly reliable rental income, landlords usually take advantage of other important benefits, all of which are paid for by tenants.

Property Taxes and Utilities

Property taxes are typically higher than the norm but, as in all commercial tenancies, they are apportioned to and paid for by the individual tenants. Care must be exercised to be accurate in the measurements of common areas and passageways, so that a proper apportionment of property taxes can be made among tenants. In some instances, landlords are entitled to estimate the taxes payable for the subsequent calendar year, and to require tenants to pay the estimate in advance, provided that when the actual amount of taxes is known, tenants shall be invoiced by the Landlord.

Operating Costs

Operating Costs refer to the total of all expenses, costs and outlays of every nature incurred in the maintenance, repair, operation, insuring and management of the building all calculated in accordance with generally accepted accounting principles. Operating Costs include cleaning and janitorial, all utilities in the interior and exterior of the building, security, window cleaning, insurance required to be carried by the Landlord, repairs and replacements to the building, heating, cooling, ventilation and air conditioning if provided, outdoor maintenance including landscaping and snow removal, replacement of light bulbs and fixtures, telephone and other utilities, service contracts with independent contractors, supplies, legal or management fees and disbursements, federal sales tax on rent or similar taxes such as the Goods and Services Tax (in Canada), and all other expenses paid or payable in connection with the operation of the Premises and maintenance of the building.

Insurance

In addition to be responsible for payment of the pro-rata share of the landlord’s insurance, tenants must carry their own comprehensive general public liability insurance (including bodily injury, death and property damage) on an occurrence basis, with respect to the business carried out in or from the premises and the tenant’s use and occupancy thereof. Such insurance must contain a waiver by the insurer of subrogation against the landlord or shall include the landlord as a named insured, and shall protect the landlord in respect of claims by the tenants.

Furthermore, the tenant must carry insurance in respect of fire and other such perils covering the tenant’s trade fixtures, furniture and the equipment, all leasehold improvements of the tenant and plate glass, and which insurance shall contain a waiver by the insurer of subrogation against the landlord or shall include the landlord as a named insured, and shall provide that any proceeds recoverable in the event of loss to leasehold improvements shall be payable to the landlord.

Leasehold Improvements

Unless stipulated otherwise, tenants bear all costs of alterations and improvements to the premises, and any and all such alterations and improvements, once completed, will become property of the landlord. Whereas free rent or free leasehold improvements are frequent in the leasing of average commercial, retail or industrial space, when it comes to small professional office buildings any such incentives or inducements to lease are unheard of.

The average size of this type of holdings is in the 10,000 to 15,000 square foot range, two or three stories in elevation and private, gated parking. As practically all expenses are paid for by tenants, capitalization rates are typically very high. The capitalization rate is the return an investor requires for investing in a property, so as to receive the annual flow of net operating income. Small free-standing professional office building have price tags ranging from CAD $1.5 million to CAD $2.5 million depending on the area, and cap rates as high as 20 percent per annum. Real property annual appreciation has been a steady 8 to 10 percent per annum over the past ten years. This means that a property that sells today for CAD $2 million would have sold for approximately CAD $750,000 in 1996.

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.

[tags]blue,chip,office,buildings,professional,real,estate,holdings,medical,investments[/tags]

The home buying process can be exciting and overwhelming at the same time. After all, it’s one of the biggest financial decisions you’ll ever make. So before you begin looking for a home, make sure you have a plan in place.

Here are some more tips to help you get the most out of your house hunting experience.

Take pictures of the home, inside and out.

When shopping for a home, bring your digital camera along. Or borrow one from a friend. Take pictures of all the houses you visit, and then group the pictures by house address for easy viewing later. This will help you remember the details of each house afterward. Then you can more easily decide which houses you’d like to follow-up on or revisit.

Bring a friend of family member along.

Buying a home can stir up a lot of different emotions, and that’s perfectly normal. But emotion can sometimes overpower logic — not something you want when making a financial decision.

You can counter this by bringing a friend or family member along on your house hunt. By bringing someone who’s not so emotionally attached to the process, you’ll have an objective ally to help you identify the pros and cons of each house.

This person can also help you recall details about a house after each visit. And chances are, they’ll be able to point out aspects of a home you might not have noticed otherwise.

Compare the house to your budget.

Ever heard the expression “house poor”? This is what happens when people take on more of a mortgage than they can comfortably afford. Ask yourself this question. If you have to work longer hours and scrimp and save just to afford a house, is it really worth it?

While house hunting, you’ll inevitably come across one or two houses that really knock your socks off, but would also knock a hole in your budget. But you have to keep your finances in mind, no matter how gorgeous a house might be.

Consider the commute.

Here’s another area where it pays to be objective. If you find a house you like, and it’s within your price range, the next thing to consider is the location. Is the house near or far from work? Does it have access to the highways you need? How long will your commute be each day?

It’s easy to fall in love with a house and dismiss the drive time. But if you commute every day, drive time matters! Try driving to or from the house during rush hour to get a realistic picture of what you’ll face every day.

Avoid spur-of-the-moment decisions.

Buying a home will probably be the biggest financial decision of your life. So it requires careful consideration. Know what you’re looking for and how much you can afford. Remember to be objective. Then get out there and hunt!

* Copyright 2006, Brandon Cornett. You may republish this article in its entirety, provided you leave the byline, author’s note and website hyperlink intact.

About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet’s largest and most respected libraries of home buying information — more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com

[tags]home buying, real estate, buying a home, house hunting[/tags]

If you’ve ever been to Coronado, California you have a pretty good idea of what paradise looks like. Real estate experts always talk about “location, location, location” as the most important factor in determining the value of a property. Well, it’s the absolute truth — and it’s tough to find a better location than Coronado!

Here are 5 reasons why Coronado real estate may be the world’s best:

1. Perfect weather — Coronado, located just off the Southern California coast, enjoys the type of weather most people daydream about: warm sun, cool ocean breezes, just a few fluffy clouds, low-humidity, very infrequent rain, and a temperature that stays in the upper-60’s to low-70’s range all year long. As is the case in most cities on the Pacific coast, early mornings in Coronado can be chilly — but, once the fog burns off, you won’t want to go back inside until the sun goes down!

2. Beautiful beaches — Coronado’s beaches are consistently rated among the world’s best by travel guides, magazines, and television shows. In fact, the Travel Channel recently ranked Coronado’s beaches in the top-10 in the US, and number 1 in Southern California… which is saying A LOT when you consider the number of world-class beaches located between LA and San Diego. It’s no wonder that Coronado’s beach-front real estate is among the world’s most valuable!

3. Convenient Location — Coronado is located right next to one of the most vibrant and colorful cities in the world: San Diego. Often called an “island,” Coronado is actually a peninsula connected to the mainland by a strip of land called the Silver Strand. Physically, Coronado is only about a mile from downtown San Diego, giving its residents easy access to a huge variety of shopping, dining, entertainment, universities, professional sports, and all the other great benefits a major city provides. For even more fun and shopping, Baja Mexico is just a 15-minute drive to the south.

4. Small Town Atmosphere — Despite it’s close proximity to San Diego, Coronado has a truly unique and inviting “small town” atmosphere all its own. When you leave the city and cross the bridge to Coronado you really feel as though you’ve stepped into another world. You see wide tree-lined streets, elegant Victorian homes, charming Spanish-style cottages, beautifully manicured lawns, quaint, locally-owned shops and boutiques, clean air, nice, cheerful people… and many other things you won’t find much of in the city! It’s this safe, friendly atmosphere that is the real draw for many people looking for prized Coronado real estate.

5. True Romance — San Diego’s “enchanted island,” as Coronado is often called, is among the world’s most romantic locations. Whether its a picnic on the beach, a Sunday afternoon concert in the park, or an intimate dinner in the famous Hotel del Coronado, Coronado offers residents and visitors alike the perfect romantic getaway. There’s a reason why Coronado has been chosen as the number one wedding destination in America: you won’t find a more magical place in such an exquisite setting anywhere in the world!

As you can see, Coronado definitely deserves its world-class reputation. It’s a truly special place that provides the perfect setting in which to live the “good life.” Buying Coronado real estate is a can’t-go-wrong investment anyone with the means and wherewithal should consider making!

Jamie Clark is a writer and co-editor for Coronado-Real-Estate-Guide.com. To learn more about beautiful Coronado, California real estate be sure to visit: http://www.coronado-real-estate-guide.com

[tags]coronado, california, real estate, investments[/tags]

Alone you have NO leverage. Alone, you have only YOUR money, YOUR experiences, YOUR time, and YOUR work efforts.

We all have limitations. Unfortunately, too many real estate investors just starting out never learn how to get beyond their limitations by exploiting the power of leverage. No matter how hard they work and how smart they are, they are destined to fail from the get go. You see, people rarely get rich based solely on their own efforts.

But don’t let this happen to you.

Leverage remains a secret to so many investors not because successful real estate investors keep it a secret, but because too many investor wannabees truly don’t understand the power of leverage. Or if they understand the principles of leverage, they fail to properly apply them in their real estate business.

And just to make sure you don’t become another has-been investor, let’s be clear about what leverage is so you can truly harness its power to empower you to get rich fast.

Leverage is anything you can use to multiply your efforts as an investor. When you have leverage, you have the power to control a lot with only a little. You can do more with less effort. This is one of the most important aspects on your path to riches and financial freedom.

There are essentially four “golden principles” that govern the application of maximum leverage in your business as a real estate investor.

1. The leverage of Other People’s Money (OPM).

Even if you’re brand new to real estate investing, you have probably heard about this financial principle before. Using other people’s money - borrowing - is one of the most common forms of applying leverage.

But why it’s popularity?

In real estate, when you buy a property for nothing down, you are able to pay nothing (or use none of your money) and LEVERAGE 100% control of the property.

Not a bad deal! But it gets even better because leverage gives you the ability to magnify the return on your investment. Here’s a simplified illustration of how it can truly propel your real estate investing business to an incredibly higher level and get rich fast.

Just think about what’s happened! You can use your $50,000 (in cash) to buy a single house to earn a 20,000 profit from the sale of the property. Or you can choose to take advantage of the remarkable power of leverage by using the same $50,000 to buy 20 houses by paying $2,500 down on each of 20 properties. Imagine what your bank account would be like if you made the same $20,000 profit on the sale of each of the 20 houses?

Can you do the numbers in your mind?

It was Napoleon Hill who said “If you don’t see great riches in your imagination you will never see them in your bank balance.”

Successful real estate investors make it happen repeatedly and it can happen to you if you apply maximum leverage.

2. The leverage of Other People’s Experience (OPE).

It takes too long to learn everything on your own so borrow from others what they have learned.
The best way to be successful in your real estate investing business is to find someone who has already achieved success and then learn from them what they did to get to that point.

It’s not rocket science!

You can accomplish this task in many ways:

a. Get a mentor

b. Read books by successful investors

c. Attend investment seminars

3. The leverage of Other People’s Time (OPT).

There is a set amount of hours you can work each day. Even if you could do without sleeping or eating, still you would have only 24 hours each day like everybody else. There is only so much time that you personally have to get all the things done that you need to do.

So you must create a duplicable system that is essentially usable by anyone. A duplicable system will help you advance faster and increase your profits while reducing your work.

Your system must be so simple that you could literally teach it to anyone of average intelligence, but yet so effective that once you have taught that someone to use your system, it operates efficiently without you.

4. The leverage of Other People’s Work (OPW).

You can use other people’s labor by outsourcing all of your rehabbing tasks. You must assemble a team to include a plumber, an electrician, an HVAC technician, a foundation specialist, a roofer, a flooring specialist, and a rehab specialist. And don’t forget to include a CPA, a real estate attorney, an escrow officer, and a realtor that specializes in foreclosures.

Here, leverage really starts to kick in because with your team you’ll get a lot more done a lot quicker than you could ever do alone. Assemble several teams simultaneously and you will be on fast-forward in your journey to achieve financial freedom.

Find a way to take advantage of other people’s work to accelerate your real estate success… Just do it!

If you do it all on your own, or said another way, if all the money you receive is directly proportional to the efforts that you make, then you are not using leverage. In fact, the author of Rich Dad, Poor Dad believes that “If you’re working hard physically and not getting ahead financially, then you’re probably someone else’s leverage!”

As one shrewd observer put it, “Wealth is when small efforts produce large results. Poverty is when large efforts produce small results.” Some people predominantly produce a lot of hard work and effort that doesn’t accomplish much. Others do some relatively simple things that make much bigger things happen. That is maximum leverage

To become financially free through your real estate business, you must master each of the four principles that control the use of maximum leverage.

Lee Salinas, CPA, MBA became a corporate refugee when he was blind-sided by a layoff in 2002. But Lee discovered life outside the corporate rat-race when he became a real estate investor. In four years, Lee has purchased over 180 properties. Additionally, Lee has created a real estate business plan that helps investors get all the private money they need to fund their deals. Lee’s business plan is available at http://www.realestatebizplan.com.

[tags]Leverage, Other People’s Money, Real Estate Investor, Other People’s Experience, Work[/tags]

Landlords and tenants alike just want a pleasant relationship, so that each can live in peace. No landlord should ever allow a tenant to move into their rental property without first requiring the prospective tenant to completely fill out a rental application.

Among the important questions that should be answered on the application are:

- Place of current employment?
- Length of employment?
- Name of bank?
- Social Security number?
- Do they have pets, if so what kind?
- Number of vehicles?
- How many occupants will live on the property?
- Ages of occupants?
- Name and address of current and prior landlords?
- Have you been convicted of a felony?
- Have you ever been evicted?
- Are you currently engaged in criminal activity?
- Have you been arrested and charged with a crime, but not yet convicted?
- Are you in bankruptcy or plan to file for bankruptcy?

A bold notice on your rental application form should read: Falsification of this information is grounds for a ten day Notice to Move if discovered later by the landlord or management.

With the information found on the rental application the landlord can begin the screening process. It is the landlord’s responsibility to be sure the tenant is the right person to occupy the home or apartment… and that the home or apartment is right for the applicant.

A qualified tenant is one who can afford the rent and has the characteristics necessary to coexist with the neighbors or other tenants. On the other hand a landlord should not rent a one bedroom unit to a four member family.

The screening process includes checking the tenant’s credit rating. Someone who has a long list of late payments and unpaid debts could immediately become a problem tenant. Solve that problem before it begins by forthrightly explaining to the prospect why he or she is not eligible to occupy the property. The best eviction is one that occurs before occupancy.

Along with a good credit history you must check prior rent history and search public criminal records for indications of behavior problems. You can ask the tenant’s prior landlord to fill out and return a written questionnaire on the tenant’s length of tenancy, payment history, violations of lease terms, etc. Yes, you can ask buy few landlords will answer. If they do reply they will avoid any negative report for fear the tenant might see the report and bring legal action against them. More practically, you might just call the present or prior landlord and learn what you can verbally.

Many people who have a criminal record have reformed and are leading exemplary lives. However, even for a sympathetic landlord to rent to a felon is playing with fire. If the felon shoots a neighbor or another tenant and it comes out in the police report that the landlord was aware of the criminal record, it is probable that someone will sue the landlord.

Make no mistake about it… fair housing laws require you to treat all prospective residents the same. Make sure you have your rental criteria in place and that it is reasonable.

Mark Walters is an investor who offers free real estate investing videos at http://www.CashFlowInstitute.com

[tags]Landlords, real estate[/tags]

On a day to day basis, I deal with many individuals who want to purchase property in Israel, though they do not live here. The following ten points were written based upon their experience in purchasing real estate in Israel.

1. Be careful. Be prepared. Be informed. - It cannot be overstated or said enough. You, your agent and your lawyer should all do the homework on price, taxes, ownership of any piece of property you are interested in.

2. Understanding Property - Your agent should understand and have seen the property they are representing and be in tune with your needs and requests. Always ask about why a property is costing X even if you feel it is fairly priced. Dig for information just don’t accept it. Get a complete picture, one which will make your decision more informed and knowledgeable.

3. Time - Don’t let an agent waste your time by dragging you around from place to place without understanding your specific needs. A good agent can save you a great deal of time because they invest the time before they ever heard from you. They scour the market for new and good deals, and meet with owners and plan out time-schedules. They try to prepare as much as possible for your request way before you even knew you would call them.

4. Knowledge of Market Availability - Agents should know the properties available. Not only those which appear in the paper, but those which are never advertised along “normative” routes.

5. Price - A good brokerage firm can often get you a better price than you can get by yourself as they are aware of the “true” market value. And often they can be instrumental in making an owner understand that what you have offered is the best deal all around. It is in the best interest for both sides to be happy, even if the agent represents only one side of the transaction.

6. Positive & Negative Aspects - Because a good agent does research before ever showing you a property, they can warn you of possible problems even when you fall in love with the property. An agent, should without hesitation, list those aspects which they feel may be viewed in a negative light as well. To sing praise is always easy, to be honest and forthright, and warn you that there may be too many stairs, or though the bathroom was just renovated it will still need more work, or the synagogue across the street may prove to be a bit noisy, or during the school year you will hear the chimes from the school down the block - even when you are “in love” is the difficult part.

7. Making Sure You See All The Factors - You should always view the prospective property more than once. At the very least, once during the day and once during night time. This is critical for you to get a sense of the apartment and neighborhood.

8. Real Property Worth - Find out through your agent and lawyer the “real” worth of the property. Do not accept just any figures thrown from a hat to impress you. Find out what other properties in the neighborhood sold for. If the property is appreciating in price. Who the neighbors are and who is buying.

9. Ethics - Agents must be licensed and are subject to laws and a rule of ethics. If you catch an agent in a lie, seek out another agent.

10. Staying Within Your Budget - Do not let an agent push you, nor attempt to talk you into spending more than your budget allows.

In future articles I will discuss taxes, broker fees, and what documentation is required of you.

Ted W. Gross owns Virgin Earth, a real estate brokerage firm in Jerusalem, Israel. Virgin Earth represents residential and commercial real estate all over Israel. The web site for Virgin Earth is: http://www.virginisrael.com.
Virgin Earth also maintains an RSS Feed on its current properties which can be found on most pages in the web site of Virgin Earth. Ted Gross can be reached at: teddy@virginisrael.com
Ted Gross is also a published author and maintains a web site for his works. This can be found at: http://www.virginisrael.com/twg/iw.html

[tags]real estate in israel, real estate in jerusalem, israel real estate, jerusalem real estate,[/tags]

In Real Estate price is not everything. It is important, of course, but not everything. Were price to be everything, then only low-priced products would sell and there would be no reasonable explanation as to why all those multi-million dollar mansions sell as well. When it comes to purchasing a house, other factors must be taken into consideration to understand the rationality - or lack thereof - of the Buyer’s decision-making process. Buyers are typically a nervous bunch, and understandably so. It is not easy to consider an investment that runs into the thousands of dollars, and any time you commit yourself to sixty months of $2,000 or so monthly payments your palms tend to perspire. Such factors as heritage, education level and risk-absorption and management play a pivotal role as well. More exotic relationships between money and nominal wealth in the minds of people - whether such relationships are clearly understood or merely hearsay - are even more important.

There is something impliedly strange in making decisions and humans, for a reason or another, tend to shy away from them. They like to stay in their comfort zones of blissful indecision. “Nothing ventured, nothing lost” is the way many people look at making any kind of move that might be to their benefit. And the purchase of a home or other real estate is one of the most beneficial decisions that can be made in our society, even at the wrong price. Making decisions is not easy, so people more often than not decide not to decide. This can be very frustrating, especially in retrospective. There is such a thing as Buyer’s remorse in reverse: how many times we real estate professionals hear comments the likes of ‘why didn’t I buy it myself’ or ‘why didn’t I think of it’ from prospective purchasers referring to properties that have already sold - and which they themselves could have bought instead of someone else.

I call it Buyer’s “alter ego”, which is a reflection proximately caused by the misinterpretation, whether effective or subjective, of what economists refer to as ‘the money illusion’. In Economics the term “money illusion” refers to a tendency to think in terms of nominal rather than real monetary values. Which tendency can be in part explained by the fact that the average consumer thinks and does things by reflection. A real estate purchaser will very well decide to buy a loft as opposed to an apartment not necessarily because he likes lofts more or because he thinks they are a better investment, but because his very close friend has just bought one or because his very dear girlfriend has stated that she likes them more, or merely because it is trendy to purchase lofts. And the fact that lofts are typically more expensive or that, ultimately, this particular consumer will end up living in a refurbished warehouse have little weight on his rationalization of the purchase.

Some colleagues in the industry are quick at resorting to statements the likes of “Buyers are Liars”. Personally I have never quite subscribed to such oversimplified, somewhat derogatory qualifications and, in fact, have found them to be untrue more often than not. Buyers are not liars to the extent that they normally tell up front which product they are looking for. Where, however, confusion lies is in the fact that economic transactions, particularly as large as real estate acquisitions, can be represented either in nominal or in real terms. The nominal representation is simpler, more salient, and often suffices for the short run, yet the representation in real terms is the one that captures the true value of the transaction. People are generally aware that there is a difference between real and nominal values, but because at a single point in time, or over a short period, money is a salient and natural unit of measurement, people often think of transactions in predominantly nominal terms. Consequently, the evaluation of transactions often represents a mixture of nominal and real assessments, which gives rise to money illusion.

As an example, consider a Buyer that purchases real estate in a downward market deflating at the rate of, say, five percent a year, and that he is able to purchase his real estate assets at a price eight percent off asking. This consumer will focus on the nominal discount of eight percent without, in fact, realizing that his real term savings consists only of three percent. Likewise a Seller, even if aware of the true value of comparable houses, may anchor on the historical price he paid for the house and will be reluctant to sell for a price less than the nominal anchor. Which, then, explains why so many listings are brandished as ‘overpriced’ in a downward trend: in times of shifting relative prices people’s reactions will be determined by the change between an item’s current price and its historical, nominal anchor. And which, in ultimate analysis, denotes a lack of experience and sophistication of many market participant and decision makers which affect their personal reactions to changes of price and market conditions.

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.

[tags]real estate,homebuying,economics,money illusion,real value,nominal value[/tags]

I know how stressful and chaotic moving and relocating can be. We moved from one part of Tucson to another in March of this year, and then in June we bought a home and relocated to Colorado. Here are some of the lessons we and others have learned.

1. Make and use lists. We all forget things, even after remembering them several times. Put them on that list during one of these times. Make a list of things to do before the move, including getting school documents transferred, filling out change of address forms, returning borrowed books and movies, transferring prescriptions, getting maps, and arranging utility shut offs and start ups.

2. Call the moving company and make the reservation a month ahead. You don’t want to discover that they are booked up on the date you need them. We found out that the type of van we wanted wasn’t available, but this was easily resolved because we started the process early.

3. Sell and throw away things. Carefully consider what you need to keep. Many people spend hundreds of dollars to move things that will probably be thrown away some day. It isn’t just about the expense either, but also about the hassle. When you are moving and especially when you are relocating to another city - this is the best time to get rid of the things you really don’t need.

4. Have a rummage sale. This is a good way to get rid of those things, and you might even raise enough money to pay for the move. Again, it is best to be rid of your things before the move. We went to a after-the-move rummage sale the other day. What a shame to pack and pay to move all those things just to have to work to sell them for pennies later.

5. Start packing early. not only is it difficult to predict how long it will take until you are doing it, but you never know how much time you’ll have later. Starting early means avoiding running around looking for boxes and packing materials at the last moment.

6. Pack an “essentials” box for when you arrive at your new home. This should have the things you need to make your arrival easier, like toilet paper, paper plates, soap and such. Carry the box where it is easily accessible.

7. Let everyone know where you are relocating to. Give family and friends of your new address and phone number(s), and do this before you have the current phone shut off. Call all your credit card companies with your new address. Change the address on any subscriptions too.

8. Check weather reports for moving day. You don’t want to arrive in a snowstorm with your coat packed away somewhere. You will also need to allow for extra moving time if the weather is going to slow down traffic.

9. Save all your receipts. Keep receipts for moving expenses, like gas, hotel rooms, and anything else related to moving and relocating. Ask your accountant or tax preparer if you are eligible for a tax deduction for moving expenses. Usually you are, if the move is for employment purposes.

10. When you move into your new home, try to reestablish your routines quickly. If Friday night is normally movie night, don’t break with the tradition. Moving and relocating are less traumatic if you have some consistency in daily life. If you’re moving with children, this could be one of the more important moving tips.

Copyright Steve Gillman. Visit his website for:

1. A photo of a beautiful house he and his wife bought for $17,500.
2. A free book on how to save thousands buying your next home.
3. A free real estate investing course.
Visit http://www.HousesUnderFiftyThousand.com

[tags]moving and relocating,moving,relocating,real estate[/tags]

One of the greatest privileges - and prerequisites - of being a successful investor is that you get to be in constant awareness of the way the markets are performing, moving capital into sections of the economy that are performing better than the others, and realizing massive profits as a result …

And if you are an investor, then you too may be wondering which sections of the economy will be the best performers in the near future.

And if you are a real estate investor who is thinking of buying even more real estate in light of the current trends in the real estate markets in the hope that these trends will stay strong for a long time to come, then you might want to pause and consider this …

Will the precious yellow metal become the darling of investors all over the world now?

Well, in case you have not already read about it, gold prices have are at a 25 year high, and it is only in the last few months or so that this metal has become a super star performer …

Considering that gold was called a “barbaric relic” by none other than the great John Maynard Keynes and has long been given up an a benchmark of currency by every country, does it not come as some surprise that the people of the world still choose to love this metal so much that many want to hoard as much of it as they can, even while they can buy other forms of assets?

And if the people are right in choosing gold over other forms of money offered by their Governments, does it imply that people are wiser than their Governments are? And …

Why do people prefer gold to other forms of money anyway?

The first question may best be left unanswered and to answer the second question, we may want to take a look at the factors favoring gold as a shining investment option…

Gold is regarded as a storehouse of value: Gold, unlike other currencies, shows a remarkable tendency to hold its value and is not subject to inflation like most other currencies. Its purchasing power does not seem to diminish with time.

Gold is rare: Gold production rarely grows by more than 2% a year and unlike most other currencies, little can be done to increase its production rate.

Gold is not controlled by Governments: Gold is free from Government control and Governments cannot change the value of gold in any way.

One question to ask now would be…

Can gold prices keep increasing for a long time?

Well, the answer to that question may not be very clear cut. Some analysts feel gold is overbought and its prices may fall soon, some others see a long term bull market for gold regardless of any short term fluctuations in the gold market.

And in case you are really interested in gold and would like to know what could drive gold prices, well…

Here’s one thing that can drive gold prices wild

If people get tired of stocks, mutual funds and currencies which are susceptible to inflation due to any number of things and start looking for a safe haven for their money, then there could be a record influx of capital into gold market as people scramble to hoard as much gold as they can, then this can drive the market to dizzying heights never seen before.

And now, let’s take a look at …

The factors that favor real estate…

With a relatively healthy economy and well paying jobs, more people are now able to realize the dream of owning a home, and this is creating a huge demand for housing.

With the amount of usable land being limited, an increasing population with better paying jobs can mean the housing market will stay healthy for a long time.

But if you want to decide whether to invest in gold or invest in real estate and would like to hear a definitive answer, then you might want to remind yourself that no analysis can claim to be fully accurate … and even the best analysis may be only a little better than a opinion at times …

So when it comes to choosing gold over real estate or the other way around, then only your intuition may be your best guide!

Gurubhakt is a writer who has written several articles on real estate investing. For some of the best luxury real estate, visit http://www.beautifulhomesandproperty.com which discusses a wide range of real estate investment options like Lake Havasu property and more.

[tags]real estate investing, gold[/tags]