The South Rises Again

Census: South leads US in fastest growth | ajc.com

The 2010 census results are in and results show that Georgia, Florida, South Carolina, and other southern states will add congressional representatives while northern states like New York and Michigan give up seats to the south. Most of the gain appears to benefit conservatives while the Democrat party will suffer most of the loss in representation.

Here in Georgia, the population has grown 18.3 percent to 9,727,566 since the 2000 census, the second highest percentage increase, second only to North Carolina among east coastal states.... and look at Texas, the biggest gainer of all, adding 4 seats to their congressional delegation.

This summer, look forward to a re-drawing of congressional district lines. Let's stay on top this time and try to avoid some of those outrageous districts created to benefit a political party and having nothing to do with good and honest representation of the voters in the district.

Amen.

Atlanta leads November home price decline | ajc.com

Atlanta leads November home price decline | ajc.com

November results show that Atlanta Metro homes sale prices are 16 percent less than 2009. This represents the greatest drop in value in the previous year-and-a-half and is the 6th month in a row that home prices have fallen relative to the same period in the previous year.

Not good, unless you are in the market for a home, and that is part of the silver lining in this story. It is a great time for first-time home buyers and investors alike to buy... and to finance with interest rates at incredible lows.

Merry Christmas!

Southwest buying AirTran for $1.4 billion  | ajc.com

Southwest buying AirTran for $1.4 billion  | ajc.com

Watch out Delta! With Southwest coming to Atlanta, my baggage has a choice. Fly for free or pay for baggage class. Let me think this over. Isn't free trade wonderful for the consumer?

How much is a billion? ... a trillion?

I just got an email that said a billion seconds ago it was 1959. It was an attempt to help us visualize a billion dollars.  In defense of our current President, his administration and the U.S. Congress, I need to refute that.  Not even close!

If my math is correct, there are 60 seconds in a minute, or 3,600 seconds in an hour, or 86,400 seconds in a day, or 604,800 seconds in a week.  Since there are 52 weeks in a year, there are 31,449,600 seconds in a year. Dividing a billion 1,000,000,000 by 31,449,600 we come up with 31.8 years, so a billion seconds will take us back only to the late 70's.  Not so bad, huh? (Yes, I'm figuring 360 days to a year to keep things simple. A US GAAP)

It's hard to believe that this email had been floating around for 3 decades.  That was when a billion was a big number, when a five-figure salary meant you were doing o.k., when politicians began to talk in terms of "a billion here, a billion there, pretty soon you're talking some serious money".

Today, our people in Washington, DC (elected and appointed) think and speak in tens, or hundreds of billions.  10 billion seconds takes us back 321 years or 1688. Wasn't that when there was a revolution with the outcome that King James II was overthrown?  

100 billion seconds will get you a ride back to 1205BC, the time of Amun, and Moses.  Uh oh, a trillion seconds takes us back 32,150 years.  Let's see, that would be 2010 - 32,150 = 30,140 BC. Can you say "Paleolithic"?  Heck, some of us weren't even born then. 


This is the number we need to think of on November 2.  30140 years Before Christ.  ... and let's keep in mind that we're now talking multiples of Trillions.  My head hurts.  


Sorry, I have to go vote.  Want a ride? 

Published with Blogger-droid v1.5.9

Stimulus News. Lemons and some Lemonage

It's probably time you thought about becoming a landlord.  Small scale or large, this is an opportunity for you to get in on some deals with positive cash flows from day one.

With the expiration of the homebuyer tax credit, home sales and resales dropped of a cliff across the nation.  But there may be some lemonade to be made from these lemons.  The withdrawal of that same stimulus will probably continue to boost demand for rentals this quarter and next as the number of people looking at home ownership subsides. Property prices should continue to hold at or near their record lows... for a while.

Even if the government's projections for jobs growth hold true,  the projections for the national labor market suggest continued increase in the rate of unemployment and that will also add to the depth of the pool of renters. The continued retirement of "boomer" workforce are taking big numbers out of the workforce, and yet the rate of unemployment is not improving.

Add to this the halting of apartment construction, the apartment sector should be looking at notable occupancy gains. Projections for occupancy are running about 92-1/2% up a bit better than 1/2% over 2009.  Really good news since it is the decrease in vacancy since 2007.

Yes, it's time to make some lemonade.

Stephen Hawking Hawks his next book

Why God Did Not Create the Universe...  the headline sure caught my eye.  And look at the author, Stephen Hawking, who with Caltech physicist Leonard Mlodinow will have their new book on the bookshelves September 7.

I'm certainly not as intelligent as either man, but as I read the Wall Street Journal article I see nothing that disproves the existence of God, nor that God created the universe.  I mean, what bigger bang could there be than "Let their be light" which ignited the light of uncountable suns.  Einstein's statement that "the only thing incomprehensible about the universe is that it is comprehensible" seems to reinforce my understanding that God is, and God did, and God still does.

My real question is why the usually conservative Wall Street Jounal chose to put this, nothing more than an advertisement for a new book soon to be on Amazon and on the shelves at your local Books-a-Million, on the front page of their newspaper.    Go figure...

New Rules on Lease Accounting... Something to be concerned about...

The Financial Accounting Standards Board (FASB) is drafting changes to the rules on lease accounting which will have a major impact on how tenants and landlords account for leases on their balance sheets. The changes could be published during the second quarter of 2011 and the standard could go into effect as early as 2013.

There are two changes with which to be concerned. 1. Lease obligations will be capitalized as a form of debt financing. 2. The occupancy expense will increase, but companies will no longer be able to recognize rent expense. Instead, it will henceforth be an amortization of an asset.

One thing for sure, if you are a tenant or a landlord or a broker, this is a game changer. 

Florida loses a ruling in tri-state water case �| ajc.com

Florida's environmental basis for it's claim to water is rejected by the judge, but Georgia is denied legal standing to challenge the U.S. Army Corps of Engineers. First good news for Georgia in quite a time...  from the Atlanta Journal Constitution ...  unusual place for good news ...

Online Marketing - Where do I Start? | The Tech Byte - Technology Strategies for Real Estate from Amy Chorew, Speaker, Coach

Amy Chorew, Tech Guru real estate agents, gives some great advice that could be useful to anyone's online marketing no matter what your product(s)... Great advice, Ms. Chorew!

Walking Away From Million-Dollar Mortgages - NYTimes.com

"More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.


By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent."

Fayette County Office Space Prices On The Rise

Loopnet, the commercial listing website, is showing an increase in prices for office space in Fayette County that is bucking the trend seen generally in metro Atlanta and the rest of the state.  Is Fayette County leading the way to recovery or are we just out of touch?

Buycott BP

Just filled up again at BP.  I want like to make sure that BP continues to have revenues so that they can afford to cap the well and repair the damage along the Gulf Coast.  


The people that are boycotting BP gas stations have not thought this through.  If anything we should be employing a Buy-cott to support BP while both BP and US are in peril.  My 2 cents...

Still living by the words of the Founding Fathers

"... We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed ..."  Declaration of Independence, July 4, 1776

May God continue to bless these United States

Law.com - Ga. Murder Case Shines Spotlight on Nation's Indigent Defense Systems

Law.com - Ga. Murder Case Shines Spotlight on Nation's Indigent Defense Systems

I know this is not real estate, but I live in Georgia and the Georgia legal system is being challenged by an accused murderer who claims the state public defender system is broken.

New Accounting Rules Could Unsettle Leasing Market - NYTimes.com

Square Feet - New Accounting Rules Could Unsettle Leasing Market - NYTimes.com

Changes in accounting rules would require companies to put leases on their balance sheets as Liabilities and Assets. At present, according to this NY Times article, "American and foreign companies list many leases as footnotes in their financial statements".

Congress Passes

The House and Senate have passed two pieces of legislation affecting the Real Estate Industry:


Homebuyer Assistance and Improvement Act (H.R. 5623). The June 30, 2010 closing deadline has been extended to September 30, 2010 The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed.  The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010.  There is will be no gap between June 30 and the date the President signs the bill into law.  I'm at a loss why contracts executed by April 30 still need time to close.

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569).  This extension is only to September, so time's a-wastin'.

Eight Mistakes Job Hunters Make - WSJ.com

Eight Mistakes Job Hunters Make - WSJ.com

Interviewing for a new job? WSJ's Sarah Needleman has a short list of "bone-headed" mistakes that interviewees commonly make. If you are looking for a new position and an interview will be part of the process, this article might be your key to making a good showing.

Owner likes orange house but neighbors see red �| ajc.com

Owner likes orange house but neighbors see red �| ajc.com:

"where do you draw the lines between private property and the good of the neighborhood?"

New Home Sales Plunge - WSJ.com

New Home Sales Plunge - WSJ.com

Did Federal and State residential buyer incentives simply move Summer business to the first quarter?  May results suggest that the stimulus may not have been as stimulating as we had hope.

Commercial Lease Modification

Arizona Attorney Ryan Rosensteel does offers a good laundry list of means by which a tenant should approach a landlord seeking a modification of an existing lease. He discusses Rent Reductions, Abatements and Waivers, Base Year Adjustments, Reduction of Space, and more.

I think it is important to remember that when you approach the landlord with your proposal for concessions, that you be prepared to offer the landlord something of value in return. For instance, most landlords want the security of knowing their property will remain leased well into the future. Unless you want to relocate, an offer of an extension of the current lease in exchange for rent concessions is a great place to begin.

Consult with your Commercial REALTOR, who regularly represents Tenants and can give you the benefit of experience in the local market.

A good read for Tenants, Landlords, and Commercial Brokers alike.

ETC

Commercial Leasing Concerns

Commercial Leasing Concerns

George Bolte gives some good advice to the entrepreneur who is looking for space for the new business. One suggestion, though. George advises: "Get in touch with a real estate broker." I would prefer he recommended a commercial broker, preferably a REALTOR(r) who is a CCIM. This will give you the resources to find exactly what you need with a broker who knows how to help you negotiate a contract that will complement your goals. Good article.

NY TIMES and Carried Interest

Let's hope the NY Times is wrong (again) as it pushes for increased taxes on carried interest which would make investments in business less profitable and therefore more risky.

http://www.nytimes.com/2010/05/29/business/29carried.html?dbk

No End In Sight For Foreclosures?

According to the Wall Street Journal, both Fannie and Freddie "expect their REO inventories to increase in the next few quarters...". The Mortgage Bankers Association reports that 14 percent of residential mortgage loands are 30 or more days delinquent. Last year this time that number was 12 percent.

WASHINGTON – Feb. 8, 2010 – Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell.

The Department identified Florida as having the most home sellers who qualify for the program.The Pentagon’s Housing Assistance Program now applies to

wounded service members relocating for treatment or medical retirement and survivors of those who have died while deployed

military personnel and Defense Department civilians affected by the 2005 round of base closings, as a result of the Base Realignment and Closing initiative

military personnel moving to a new base

Super Bowl

Here it is, Super Bowl 44, er XLIV. The outcome of which is purported to direct the economy. If the NFC wins, supposedly the Bears on Wall Street will rule. If the AFC wins, well....

Either way, the real estate market remains a great place to be if you are a buyer with financial resources. Prices have never been more attractive and rates never as low in recent history.

... so I say go Colts AND Saints. Make Super Bowl XLIV even better than the commercials!