Archive for February, 2010
Feb
27
Government Plans for Mortgage Industry May Help House Prices
Posted by: | CommentsNot only Northern Rock sold off its mortgages to international financiers as securities backed by assets, but nearly all UK banks have used the global marketplace to locate cheap funding. Approximately 25% of all UK mortgages were financed with the sale of mortgage backed bonds.
Approximately 200 billion worth of UK mortgaged-backed bonds are currently trading. It is fairly likely that your mortgage is actually owned by an American pension fund or an Australian hedge fund. While you were under the impression that you had a mortgage from your local building society.
Last summer saw the end of asset-backed securities, causing problems for many mortgage lenders, not just the well-publicised Northern Rock situation. These securities were the source of funds for millions of cheap loans of all kinds, not just mortgages. The inevitable result is an increase in mortgage rates and the scarcity of new mortgage funds.
This shortage has taken the wind out of the sails of a housing market. Basic mortgage backed bonds have led to a few problems; the real trouble has come from other collateralised debt problems related to the US sub-prime mortgage meltdown. These funds have caused a ripple effect of serious problems throughout the regular mortgage backed bonds, market. Firstly, there has been depreciation in the reputation of all securities that are backed by mortgaged properties.
In addition, these collateralised debt organisations with the main buyers of British mortgage-backed securities. However, they are no longer in the market for this kind of wholesale debt purchase. International investors view the British housing market as having some similar problems to those that caused the US mortgage meltdown. Namely, that the British housing market way overpriced and can only go down in the immediate future.
These investors believe that there may be a downturn in the housing market in Britain of as much as 10% over the next 12 months. If these investors do not come back to the UK it could cause serious problems for regular British borrowers in finding loan at a decent interest rate. Recent indications from the Chancellor of the Exchequer, Alistair Darling, that a new kite mark, dedication for mortgage lenders will come into place. This should help to bolster the wholesale purchase of mortgage assets, giving British lenders the much needed cash to fund new loans.
Once in place, this new system would allow European investment houses to purchase job lots of mortgages from high Street, building societies and banks in the UK. This boost would not only be financial. It would also be a psychological boost for the housing market that may well stabilise it, and possibly bring about healthy upswing in new mortgages and house purchase.
Is essential the government’s plans to keep the mortgage market buoyant, it has been well publicised over the last year that there is a massive shortfall in the number of houses available, especially for first-time buyers. Therefore, the government is very keen to keep the money flowing keep the new housing estates, blossoming across the country. There is a feeling in the mortgage world of white at the end of the tunnel getting closer, and after budget may soon kick start a new house buying boom.
Rent Back Fast
Feb
24
Established: Video Game Rentals Hurt Sales
Posted by: | CommentsFrank N. Magid Associates has been looking into the buying and renting habits of consumers recently. Their report begins by noting that approximately 40 percent of console gamers – 30 percent of which are adolescents – rented at least one game in the last year. Only half of this number goes on to buy the games that they rent. The report concludes by noting that a mere nine percent of game renters go on to purchase just 11 percent or more of the games they rent.
That’s still a large number considering that almost 40 percent of weekly console gamers report renting at least one game in the last year. With their limited disposable income, teenagers represent almost 30 percent of game renters even though they make up only 12 percent of the total gamer population. Teens are both more cost-sensitive and also have the time to rent and try new games before buying.
“More often than not consumers tell us they don’t buy a rental game because it was not very good or it is too short,” says analyst Mike Vorhaus. “Rental play does not lead to significant purchases of those rented games.”
Almost 50 percent of gamers report buying NONE of the games that they rented in the last year.
Blockbuster Busts Developers’ Bottom Line
Developers generally viewed rentals as no big deal. What’s changed is that games are much shorter than they used to be. In addition, the game industry releases new games to store shelves AND rental stores on the same day. The question then arises as to whether it’s legal to disallow rental stores from buying games at Best Buy and then renting them without the copyright holder’s permission.
Another issue arises with the rental of PC games – since it’s so easy to pirate them. Stores instantly get hurt since people with PC’s can rent the game, install it at home, perhaps copy it (or just leave it installed on the machine), and return the title well in advance of the due date. The need to buy the game is instantly removed and while rentals do great, sales drop off.
It’s also possible to obtain PSP games for next to nothing on the Internet – the legal way is to pay the membership fee of one of the many sites that offer this service. There are also sites where you do not have to pay anything but when you download there are viruses, spyware and other forms of malware that come bundled with the software package.
The rap on video games is that they’re expensive and getting pricier. The typical $49.99 manufacturer’s suggested retail price is only for gamers who insist on owning a pristine copy of their favorite games. Other, less-fussy gamers can plunk down $27.99 for a so-called pre-owned copy and go home, knowing that they just saved 44% on what is essentially the same game – perhaps without a manual or box – but guaranteed to work nonetheless.
In spite of these setbacks, the recent years, in particular 2005 have been good to the gaming industry, due mostly in part to handheld gaming. The NPD Group reports U.S. game rental sales hit a record 10.5 billion in 2005, breaking the previous record of 10.3 billion set back in 2002.
Quick Property Sale
Feb
19
Affordable Home Insurance. Always Getting Value at the Best Rates (part 2)
Posted by: | CommentsWe have previously looked at how reviewing our home insurance policies regularly can result in a lowering of our rates. Leaving it just at that could be misleading. Why?
When you review your home insurance policy, you do not only discover things that have lost value. You only discover things that have appreciated in value. Do you gain anything by hiding these? No you don’t. We talk of affordable but adequate home insurance coverage. Whatever you do, you need to have adequate coverage ortherwise why bother at all? You can only get adequate home insurance coverage when your home and valuable are adequately covered. This means that if you insured your home when it was valued at $5000 and and your rate was x amount every year and now it is valued at $10,000 and your rate is still x amount every year meaning the new value has not been taken into consideration, if anything happens and you make a claim, your claim would be based on $5000 which would not be adequate compensation for your loss. So you were not adequately covered.
Reviewing your home insurance policy can show you things you need to remove and can also show you things you need to add. Your focus should be getting affordable but adequate home insurance coverage.
Never be under-covered. Get adequate coverage but get it at an affordable cost. Like I mentioned in the last article, get a CLUE (Comprehensive Loss Underwriting Exchange) It would help you save a great deal.
Also do not joke with comparing quotes online. Its a very simple process that would save you tremendously. Visit between 3 and 4 free quotes sites and compare quotes to get affordabloe home insurance coverage.
Quick House Sale
Feb
14
Miami Real Estate - Eviction Process
Posted by: | CommentsAn eviction for nonpayment of rent is the legal process of expelling a tenant from occupying a property. The eviction process in Miami, Florida is very complicated has very strict rules and deadlines that the landlord must know and obey in order to avoid delays and legal liability. An eviction for non-payment of rent has become very common in today’s economy and current Miami real estate market.
It is against the law for a landlord to forcibly evict a tenant in Miami-Dade County for nonpayment of rent without a judge’s court order. The landlord can’t place chains at the gate, turn off the utilities, or enter the property to change the locks and take possession. You must go thru the court system and follow very specific eviction steps. The landlord must act quickly when the tenant refuses to pay the rent. The landlord should start the eviction process immediately.
These are the steps to do an eviction in Miami.
Step 1. Three Day Notice - This is the first step in the eviction process. You either post it yourself at the door or hand deliver the form in Miami. The three day notice notifies the tenant to pay the rent in full or vacate the property within three business days. It states the tenants name, address, amount of rent due, and date of notice. It is signed by landlord or property manager.
Step 2. Five Day Notice or Residential Evictions Summons - This form must be served by the sheriff or a private server to the tenant in Miami-Dade County. It states the case number, the plaintiff (landlord) and the defendant (plaintiff). It lets the tenant know that they have 5 days to answer to the court the reasons why they should not be forced to move.
Step 3. Complaint for Removal of Tenant - This form is part of the Five Day Notice and must be served to the tenant at the same time. A copy of the Three Day Notice and a copy of the lease must be included as part of the package. A $270.00 filing fee must be paid at the court plus $10.00 fee for each summons served and $20.00 sheriff’s fee for each service of the Five Day Notice.
Step 4. Default Package - This package is file approximately 10 days after the service only if the tenant has not answered the court. This package includes Affidavit of Non-Payment of Rent which must be notarized, Non-Military Affidavit, Motion for Default, Final Judgment for Removal of Tenant, Writ of Possession. There is a fee of $95.00 payable to the sheriff in advance.
Step 5. Writ of Possession - The judge will sign a Writ of Possession after receiving the Default Package and then it will be delivered to the Sheriff.
Step 6. Eviction - The sheriff will post a note at the door informing the tenant the date they must move out and when the eviction will take place, usually within 42 to 72 hours. The Sheriff will come back and evict tenant, everything will be removed from the premises and give possession of the property to the landlord.
Most evictions do not go thru all the steps. Many evictions for nonpayment are solved at step number one, the Three Day Notice. The tenant will call you alarmed and either pay the rent or ask for the deposit back so he/she can move out. Usually I try to work with the tenant at every step of the eviction process. Since all I want as a landlord is possession of the property I offer the tenant to give their deposit back, to place their things in storage and hire movers at my expense and help in finding them another place. The Miami real estate market and economy is slow and filled with trouble tenants. It is always better to try to negotiate with the tenant if possible. A full eviction is a drawn out and tedious process that should be negotiated and avoided at all cost in the Miami real estate current market situation.
Disclaimer. This author is not an attorney and recommends that if you have any doubts or questions about doing an eviction you should contact a Miami real estate attorney immediately.
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