Forget the old saw that all real estate is local. What's pummeling housing prices in your nabe is the same thing that's hurting them around the country: the credit crisis.
You know the drill - banks' troubles have made it harder for many home buyers to get mortgages, and those who do qualify have to pay more. A borrower with good credit and a 20% down payment recently got charged an interest rate of 6.7%, on average.
It's true that this rate is not historically high (rates often surpassed 9% in the early 1990s). But it's more than the 6.2% that the same borrower would have paid at the beginning of 2008.
The fact that mortgage rates have remained stubbornly elevated despite the government takeover of Fannie Mae and Freddie Mac leads some experts to believe that those rates are not headed down anytime soon.
Then look at the fact that 18.6 million homes in this country are now sitting vacant, more than at any other time since the Census Bureau began tracking that figure in the 1960s. And that 2.8% of U.S. mortgage loans are now at least three months in arrears, up from 1.4% a year ago. That rate is projected to peak in early 2009.
But if a recession lasts for three-quarters of the year, as some economists are predicting, the number of foreclosures could remain high longer. Add it all up and you have another lousy year for real estate.
Home prices are down 20% nationwide since their peak in July 2006, according to the S&P/Case-Shiller home price index. Economist's expects another 20% decline in home prices next year.
The damage will likely hit even areas that have so far escaped many problems, such as New York City. It looks like we won't see the market turning until late 2009.
Showing posts with label Absolute Property Management. Show all posts
Showing posts with label Absolute Property Management. Show all posts
Monday, November 10, 2008
Thursday, October 16, 2008
7 Questions You Must Ask Before Buying a Condo
You've found your dream condo, and you're ready to relax among the mango trees and swaying date palms. Hold everything. To keep from getting stuck with a lemon, you've got to do some homework. Here are the seven most important questions you need to ask before buying a condo.
1. "What's the Beef?"
Take a look at the minutes of the condo association board meetings to see what the owners have been griping about. If everyone was complaining about the faulty plumbing or the gardener's absence, you know that the complex is having management difficulties. Even if there aren't any complaints, reading the minutes will reveal the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.
2. "Who's Been Naughty and Who's Been Nice?"
Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is either a sign of discontent or an indication that the association might be underfunded.
3. "How Much Is In the Repair Fund?"
Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.
4. "Can You Cover Me?"
If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association's policy. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.
5. "Does the Association Present Any Legal Problems?"
Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Giese, the author, once found that the association bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.
6. "Is the Complex Renter-Friendly?"
If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.
7. "Am I My Community's Keeper?"
Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners -- especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.
1. "What's the Beef?"
Take a look at the minutes of the condo association board meetings to see what the owners have been griping about. If everyone was complaining about the faulty plumbing or the gardener's absence, you know that the complex is having management difficulties. Even if there aren't any complaints, reading the minutes will reveal the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.
2. "Who's Been Naughty and Who's Been Nice?"
Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is either a sign of discontent or an indication that the association might be underfunded.
3. "How Much Is In the Repair Fund?"
Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.
4. "Can You Cover Me?"
If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association's policy. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.
5. "Does the Association Present Any Legal Problems?"
Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Giese, the author, once found that the association bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.
6. "Is the Complex Renter-Friendly?"
If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.
7. "Am I My Community's Keeper?"
Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners -- especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.
Monday, October 6, 2008
Give Renters What They Want Most at Home: Safety & Security
The people have spoken. The top two features people look for in housing are security and fire safety, says a study by the Bethesda-based Society for Fire Protection.
The study says 43% of those polled answered with one of those two categories as the most important. With such overwhelming numbers behind security and fire safety, landlords should pay close attention. Chris Jelenewicz, an engineering program manager with SFPE, says landlords can, and often should, make simple changes that will have a high impact on both security and fire safety.
“When security and fire protection aren’t coordinated, it can lead to devastating affects,” Jelenewicz says. “It can be an issue at any property, really.”
Among the simplest improvements a landlord can make is ensuring all exits to a building are clear of obstructions/ blockages of any kind. This can include plants, stored equipment, etc.
Jelenewicz says it is shocking how many buildings, especially high-rise buildings with auxiliary staircases, use areas such as back staircases to store boxes and random items occasionally needed on site.
Another somewhat easy fix it is arming auxiliary doors with alarms, so they can not be accessed to enter the building and only will be used as exits in emergencies. A similar renovation would be installing technology that forces a 10-second delay before a door will open in a low-traffic part of a building. Jelenewicz calls the measure a key new crime deterrent.
“If someone stealing a TV or a laptop in that situation, they’ll likely drop it and leave [through a more accessible/ more public exit], says Jelenewicz.
If the landlord is involved in building or overhaul of a rental property, it would behoove him/her to consult a fireprevention engineer during the design phase to make sure new safety issues aren’t being created, says Jelenewicz. Remember, spending money up-front could save a lot more money down the road.
The study says 43% of those polled answered with one of those two categories as the most important. With such overwhelming numbers behind security and fire safety, landlords should pay close attention. Chris Jelenewicz, an engineering program manager with SFPE, says landlords can, and often should, make simple changes that will have a high impact on both security and fire safety.
“When security and fire protection aren’t coordinated, it can lead to devastating affects,” Jelenewicz says. “It can be an issue at any property, really.”
Among the simplest improvements a landlord can make is ensuring all exits to a building are clear of obstructions/ blockages of any kind. This can include plants, stored equipment, etc.
Jelenewicz says it is shocking how many buildings, especially high-rise buildings with auxiliary staircases, use areas such as back staircases to store boxes and random items occasionally needed on site.
Another somewhat easy fix it is arming auxiliary doors with alarms, so they can not be accessed to enter the building and only will be used as exits in emergencies. A similar renovation would be installing technology that forces a 10-second delay before a door will open in a low-traffic part of a building. Jelenewicz calls the measure a key new crime deterrent.
“If someone stealing a TV or a laptop in that situation, they’ll likely drop it and leave [through a more accessible/ more public exit], says Jelenewicz.
If the landlord is involved in building or overhaul of a rental property, it would behoove him/her to consult a fireprevention engineer during the design phase to make sure new safety issues aren’t being created, says Jelenewicz. Remember, spending money up-front could save a lot more money down the road.
Resident Feedback - Turning Negatives Into Positives
No matter how expansive a company’s efforts toward improving resident experience may be, resident feedback is the most efficient means of evaluating a community’s overall viability.
Resident feedback is essential to maintaining a viable apartment community. Whether it’s a four-unit apartment building or a 25,000-unit, nationwide portfolio, properly addressing resident concerns should play an integral role in any property manager’s strategic plan.
Unfortunately, while resident feedback is undoubtedly a valuable tool, the vast majority of it is negative because a satisfied resident is typically a quiet resident. The true challenge exists in communicating openly with these residents, addressing their issues and continuously searching for ways to improve the resident experience through information gathering.
Keeping it Personal
While access to new technologies and up-to-date research materials has significantly bolstered property managers’ communication capabilities, the most effective means of resident communication remains one-on-one dialogue.
Despite the expansive size of the community and the potentially high number of resident concerns, taking the time to listen and respond to residents’ issues through interpersonal communication will foster goodwill among the resident population and increase residents’ confidence in their property management firm.
Resident feedback is essential to maintaining a viable apartment community. Whether it’s a four-unit apartment building or a 25,000-unit, nationwide portfolio, properly addressing resident concerns should play an integral role in any property manager’s strategic plan.
Unfortunately, while resident feedback is undoubtedly a valuable tool, the vast majority of it is negative because a satisfied resident is typically a quiet resident. The true challenge exists in communicating openly with these residents, addressing their issues and continuously searching for ways to improve the resident experience through information gathering.
Keeping it Personal
While access to new technologies and up-to-date research materials has significantly bolstered property managers’ communication capabilities, the most effective means of resident communication remains one-on-one dialogue.
Despite the expansive size of the community and the potentially high number of resident concerns, taking the time to listen and respond to residents’ issues through interpersonal communication will foster goodwill among the resident population and increase residents’ confidence in their property management firm.
Thursday, October 2, 2008
Introduction To Absolute Property Management
Our company's mission is to provide the highest quality, cost effective management services your homeowners or condominium association deserves. If you have a new community, we can set you up with everything you will need, without any headaches. We also specialize in assisting condominium and homeowners associations which may be in financial or other difficulty as the result of poor service from a prior management company. That is, in fact, how Absolute Property Management came to exist.
There are many qualities that are important to a company's success. At Absolute Property Management, Inc. we believe the most important is the guiding philosophy that forms the character of our organization. Absolute Property Management Inc. has a written philosophy that guides our organization and our business relationships. Every person in the Absolute Property Management, Inc. organization knows our philosophy and is accountable for insuring that these standards are consistently maintained. We also encourage all of our business partners to hold us accountable for maintaining these standards by informing us if we ever fail to meet these commitments.
HONESTY
Honesty is the foundation for all activities of the Company.
Absolute Property Management, Inc. personnel will be honest and ethical in all of their activities.
Absolute Property Management, Inc. personnel will not lie or distort the truth regardless of the consequences.
Honest mistakes will happen. We will acknowledge a mistake and correct it to the extent possible.
RESPECT
We will show respect for each and every person with whom we come in contact while performing our duties.
CUSTOMER SERVICE
Our commitment is to provide outstanding service to our customers.
We will promptly and courteously respond to all phone calls or other inquiries.
We will meet our commitments and follow through on all of our responsibilities.
We will continually update our knowledge and professional training to maintain the skills necessary for the highest level of service to our clients.
TEAMWORK
We will support and help one another.
ATTITUDE
We will be courteous and friendly at all times.
We will strive to have fun and enjoy our work.The owner and founder of our company was deeply frustrated by the treatment they received as a board member dealing with their association’s management company. They never answered the phone, they let the grounds and facilities deteriorate, they were frivolous with funds, major projects (i.e. hurricane repairs) never got completed, etc.
There are many qualities that are important to a company's success. At Absolute Property Management, Inc. we believe the most important is the guiding philosophy that forms the character of our organization. Absolute Property Management Inc. has a written philosophy that guides our organization and our business relationships. Every person in the Absolute Property Management, Inc. organization knows our philosophy and is accountable for insuring that these standards are consistently maintained. We also encourage all of our business partners to hold us accountable for maintaining these standards by informing us if we ever fail to meet these commitments.
HONESTY
Honesty is the foundation for all activities of the Company.
Absolute Property Management, Inc. personnel will be honest and ethical in all of their activities.
Absolute Property Management, Inc. personnel will not lie or distort the truth regardless of the consequences.
Honest mistakes will happen. We will acknowledge a mistake and correct it to the extent possible.
RESPECT
We will show respect for each and every person with whom we come in contact while performing our duties.
CUSTOMER SERVICE
Our commitment is to provide outstanding service to our customers.
We will promptly and courteously respond to all phone calls or other inquiries.
We will meet our commitments and follow through on all of our responsibilities.
We will continually update our knowledge and professional training to maintain the skills necessary for the highest level of service to our clients.
TEAMWORK
We will support and help one another.
ATTITUDE
We will be courteous and friendly at all times.
We will strive to have fun and enjoy our work.The owner and founder of our company was deeply frustrated by the treatment they received as a board member dealing with their association’s management company. They never answered the phone, they let the grounds and facilities deteriorate, they were frivolous with funds, major projects (i.e. hurricane repairs) never got completed, etc.
541 S. State Rd. 7 #12 • Margate, FL 33068
Phone 954.984.8200 Fax 954.984.4211
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