REFLECTIONS FOR THE NEW YEAR
(From the writings of Harold Warbeirn)
Because the world is poor and starving,
Go with bread
Because the world is filled with fear,
Go with courage
Because the world is in despair,
Go with hope
Because the world is living lies,
Go with truth
Because the world is sick with sorrow,
Go with joy
Because the world is weary of wars,
Go with peace
Because the world is seldom fair,
Go with justice
Because the world is under judgment,
Go with mercy
Because the world will die without it,
Go with love.
Friday, December 31, 2010
Thursday, December 30, 2010
Beyond the Decade
What changes do you expect to see this coming decade?
How will technology continue to change?
When will be the last time you will need to sharpen a pencil?
As we start the New Year with a positive outlook, let’s revisit some concepts using our knowledge and values to succeed in 2011:
Have strong Beliefs – know where you are going – have goals
Be an Optimist – be a positive role model - appreciate life
Relentless Preparation – answer the unanticipated, sense of calm with practice
Invest in Others – be a mentor - assist others without expecting anything in return.
Live in a State of Gratitude – 86,400 seconds in a day – how will you use this time?
Act rather than react – take action
Reinvent – do what you do and always have done - differently
How will technology continue to change?
When will be the last time you will need to sharpen a pencil?
As we start the New Year with a positive outlook, let’s revisit some concepts using our knowledge and values to succeed in 2011:
Have strong Beliefs – know where you are going – have goals
Be an Optimist – be a positive role model - appreciate life
Relentless Preparation – answer the unanticipated, sense of calm with practice
Invest in Others – be a mentor - assist others without expecting anything in return.
Live in a State of Gratitude – 86,400 seconds in a day – how will you use this time?
Act rather than react – take action
Reinvent – do what you do and always have done - differently
Wednesday, December 29, 2010
More…. Changes:
The Land Line Telephone
Unknown source: Unless you have a large family and make a lot of local calls, you don't need it anymore. Most people keep it simply because they've always had it. But you are paying double charges for that extra service. All the cell phone companies will let you call customers using the same cell provider for no charge against your minutes.
Soon/now, the new technology with phones/video/internet will replace more than just land lines!
Television
Unknown source: Revenues to the networks are down dramatically. Not just because of the economy. People are watching TV and movies streamed from their computers. And they're playing games and doing lots of other things that take up the time that used to be spent watching TV. Prime time shows have degenerated down to lower than the lowest common denominator. Cable rates are skyrocketing and commercials run about every 4 minutes and 30 seconds.
We are/will be watching shows/movies on our cell phones.
What other changes will we experience in 2011?
Unknown source: Unless you have a large family and make a lot of local calls, you don't need it anymore. Most people keep it simply because they've always had it. But you are paying double charges for that extra service. All the cell phone companies will let you call customers using the same cell provider for no charge against your minutes.
Soon/now, the new technology with phones/video/internet will replace more than just land lines!
Television
Unknown source: Revenues to the networks are down dramatically. Not just because of the economy. People are watching TV and movies streamed from their computers. And they're playing games and doing lots of other things that take up the time that used to be spent watching TV. Prime time shows have degenerated down to lower than the lowest common denominator. Cable rates are skyrocketing and commercials run about every 4 minutes and 30 seconds.
We are/will be watching shows/movies on our cell phones.
What other changes will we experience in 2011?
Tuesday, December 28, 2010
CHANGES ARE COMING
and some changes already here.
Not only are we losing the Greatest Generation but we are experiencing changes to our everyday life.
The following is from an Unknown source:
The Post Office
Get ready to imagine a world without the post office. They are so deeply in financial trouble that there is probably no way to sustain it long term. Email, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive. Most of your mail every day is junk mail and bills. Junk mail has diminished significantly since the Great Recession started.
And bills will not be mailed in the future as companies transform to online payments.
The Check
Britain is already laying the groundwork to do away with checks by 2018. It costs the financial system billions of dollars a year to process checks. Plastic cards and online transactions will lead to the eventual demise of the check. This plays right into the death of the post office. If you never pay your bills by mail and never received them by mail, the post office would absolutely go out of business.
How many checks do you write a month? If you are not paying your bills online, you should at least investigate – easy to do and doesn’t take as much time and “free”.
The Newspaper
The younger generation simply doesn't read the newspaper. They certainly don't subscribe to a daily delivered print edition. That may go the way of the milkman and the laundry man. As for reading the paper online, get ready to pay for it. The rise in mobile Internet devices and e-readers has caused all the newspaper and magazine publishers to form an alliance. They have met with Apple, Amazon, and the major cell phone companies to develop a model for paid subscription services.
How does the USA Today newspaper continue to print when circulation declines daily for metro-papers? The Charlotte Observer has dramatically decreased in size over the past several years. The local community paper seems to be thriving rather than the regional paper.
More changes coming.....
Not only are we losing the Greatest Generation but we are experiencing changes to our everyday life.
The following is from an Unknown source:
The Post Office
Get ready to imagine a world without the post office. They are so deeply in financial trouble that there is probably no way to sustain it long term. Email, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive. Most of your mail every day is junk mail and bills. Junk mail has diminished significantly since the Great Recession started.
And bills will not be mailed in the future as companies transform to online payments.
The Check
Britain is already laying the groundwork to do away with checks by 2018. It costs the financial system billions of dollars a year to process checks. Plastic cards and online transactions will lead to the eventual demise of the check. This plays right into the death of the post office. If you never pay your bills by mail and never received them by mail, the post office would absolutely go out of business.
How many checks do you write a month? If you are not paying your bills online, you should at least investigate – easy to do and doesn’t take as much time and “free”.
The Newspaper
The younger generation simply doesn't read the newspaper. They certainly don't subscribe to a daily delivered print edition. That may go the way of the milkman and the laundry man. As for reading the paper online, get ready to pay for it. The rise in mobile Internet devices and e-readers has caused all the newspaper and magazine publishers to form an alliance. They have met with Apple, Amazon, and the major cell phone companies to develop a model for paid subscription services.
How does the USA Today newspaper continue to print when circulation declines daily for metro-papers? The Charlotte Observer has dramatically decreased in size over the past several years. The local community paper seems to be thriving rather than the regional paper.
More changes coming.....
Monday, December 27, 2010
Changes
Our society will change when The Greatest Generation is no longer around to guide us.
My Dad’s goal is to reach the age of 90. He will reach his goal this month.
He is part of the greatest generation.
He was raised during the depression.
He graduated from the University of Oklahoma with a degree in aeronautical engineering.
His professional career was with one company for 36 years – Boeing.
He graduated with his aeronautical engineering degree on June 1, 1942 and was inducted into the U.S. Air Corps on June 2, 1942 – World War II.
He spent most of his tour on the island of Tinian in the South Pacific.
An island only 3 miles wide and 12 miles long with 100,000 men and hundreds of
B-29’s. Eventually, the Enola Gay launched from Tinian Island and the war soon came to an end.
Talk to a World War II vet; their stories, pride, and patriotism are unparalleled.
As the greatest generation shrinks in numbers, have you passed along their memories to your children?
Have you modeled your values after their values since they made our country great?
The torch always passes to the next generation but if the next generation doesn’t know our history or the sacrifice of our own family members, how will they know what freedom really means?
Are there any true hero’s today?
Who is your hero?
My hero is my Dad.
He is the family patriarch. When he talk’s, you listen. He still has goals. He is concerned about America. He is still sharp and stays current with everyday events.
He has a very large American flag at full mast outside his assisted living apartment door - in a hallway!
I salute you B T Johnson.
More changes posted this week.
My Dad’s goal is to reach the age of 90. He will reach his goal this month.
He is part of the greatest generation.
He was raised during the depression.
He graduated from the University of Oklahoma with a degree in aeronautical engineering.
His professional career was with one company for 36 years – Boeing.
He graduated with his aeronautical engineering degree on June 1, 1942 and was inducted into the U.S. Air Corps on June 2, 1942 – World War II.
He spent most of his tour on the island of Tinian in the South Pacific.
An island only 3 miles wide and 12 miles long with 100,000 men and hundreds of
B-29’s. Eventually, the Enola Gay launched from Tinian Island and the war soon came to an end.
My Grandfather was a Colonel in the US Army Signal Corps during WW I. His memorabilia are in the archives of the Oklahoma State Air Museum. I know this through my Dad as he talks about his childhood, the depression, and the war.
I can’t imagine the sacrifice my parents and grandparents made during those times. I can’t imagine graduating from college one day and the next day be in the military.
Talk to a World War II vet; their stories, pride, and patriotism are unparalleled.
As the greatest generation shrinks in numbers, have you passed along their memories to your children?
Have you modeled your values after their values since they made our country great?
The torch always passes to the next generation but if the next generation doesn’t know our history or the sacrifice of our own family members, how will they know what freedom really means?
Are there any true hero’s today?
Who is your hero?
My hero is my Dad.
He is the family patriarch. When he talk’s, you listen. He still has goals. He is concerned about America. He is still sharp and stays current with everyday events.
He has a very large American flag at full mast outside his assisted living apartment door - in a hallway!
I salute you B T Johnson.
More changes posted this week.
Friday, December 24, 2010
Thursday, December 23, 2010
GDP
GDP
2nd quarter 2009 - 0.7%
3rd quarter 2009 2.2%
4th quarter 2009 5.6%
1st quarter 2010 2.7%
2nd quarter 2010 1.7%
3rd quarter 2010 2.6%
The 3rd quarter GDP has to be welcome sight! The trend from the 4th qt ’09 to 2nd qt. ’10 was down. Many economists were predicting a double dip recession due to these trends and government spending. It would seem the data indicates an improvement in the economy - let's hope the trend continues.
If the shopping crowds are any indication this Christmas, I would expect the GDP to either be flat lined or trend up. There are a lot of shoppers and everyone seems to be carrying a shopping bag. At least for consumer spending, this is a good sign. Let’s hope that the economy continues to improve and the federal government stops spending!
Release dates in 2011
Gross Domestic Product
2010 2011
4th Qt 1st QT 2nd QT 3rd QT
Advance.... January 28 April 28 July 29 October 27
Second..... February 25 May 26 August 26 November 22
Third...... March 25 June 24 September 29 December 22
2nd quarter 2009 - 0.7%
3rd quarter 2009 2.2%
4th quarter 2009 5.6%
1st quarter 2010 2.7%
2nd quarter 2010 1.7%
3rd quarter 2010 2.6%
The 3rd quarter GDP has to be welcome sight! The trend from the 4th qt ’09 to 2nd qt. ’10 was down. Many economists were predicting a double dip recession due to these trends and government spending. It would seem the data indicates an improvement in the economy - let's hope the trend continues.
If the shopping crowds are any indication this Christmas, I would expect the GDP to either be flat lined or trend up. There are a lot of shoppers and everyone seems to be carrying a shopping bag. At least for consumer spending, this is a good sign. Let’s hope that the economy continues to improve and the federal government stops spending!
Release dates in 2011
Gross Domestic Product
2010 2011
4th Qt 1st QT 2nd QT 3rd QT
Advance.... January 28 April 28 July 29 October 27
Second..... February 25 May 26 August 26 November 22
Third...... March 25 June 24 September 29 December 22
Wednesday, December 22, 2010
We Are USA
Population is 308,745,538 as per the 2010 census
Approximately 3,000,000 per year added to our population over the past decade.
How will they work?
When will they play?
What will they shop for?
Where will they live?
Population increase of approximately 1,200,000 is due to immigration.
States with Population Gains: TX, FL, SC, GA, AZ, UT, NV, WA
States with Population Losses: NY, OH, MA, NJ, PA, MI, IL, IA, MO
Changes are here.
Starting Monday and for the next two weeks, I will strive to post “changes” that we have experienced, are experiencing, or will experience.
Approximately 3,000,000 per year added to our population over the past decade.
How will they work?
When will they play?
What will they shop for?
Where will they live?
Population increase of approximately 1,200,000 is due to immigration.
States with Population Gains: TX, FL, SC, GA, AZ, UT, NV, WA
States with Population Losses: NY, OH, MA, NJ, PA, MI, IL, IA, MO
Changes are here.
Starting Monday and for the next two weeks, I will strive to post “changes” that we have experienced, are experiencing, or will experience.
Monday, December 20, 2010
Property Taxes
As 2011 quickly arrives, we can easily say that housing values have declined in 2010. Certainly values are less than the previous two years. We are in a period of leveling off and in some markets, price increases!
As you all know, at all levels of government, our elected officials are having difficulty in generating revenue. Most local governments use property taxes as their primary revenue source in setting their yearly budget. The property tax rate is set yearly by local municipalities. The tax rate and the real estate assessment of a home determine the amount of the real estate tax to be paid by homeowners.
In many locations, the last reassessment took place before the peak or during the peak of the market. It is likely the current real estate value will be less than the previous assessment. Thus, will the real estate tax be lower – most likely not!! The tax rate will most likely be increased to maintain current local government spending levels.
Therefore, homeowners have two chances to ensure local government is not maintaining current spending habits on the backs of homeowners.
1. Reassessments by local government should be challenged if the new assessment value does not reflect the current market value in your area. If the assessment of your home is higher than the last evaluation, their assessment should be challenged and an appeal filed. In most cases, the appeal is a form letter substantiated reasons for you appeal.
2. Become involved in the local government especially at the time of setting the local government budget for the next year. Local government must generate revenue to maintain current spending levels. To achieve this goal with property values declining, politicians will raise the property tax rate.
These challenges are undertaken at two different points in time and their actions will have a direct impact on your own personal household budget. Become an activist for homeowners which currently shoulder the burden of local government spending.
As you all know, at all levels of government, our elected officials are having difficulty in generating revenue. Most local governments use property taxes as their primary revenue source in setting their yearly budget. The property tax rate is set yearly by local municipalities. The tax rate and the real estate assessment of a home determine the amount of the real estate tax to be paid by homeowners.
In many locations, the last reassessment took place before the peak or during the peak of the market. It is likely the current real estate value will be less than the previous assessment. Thus, will the real estate tax be lower – most likely not!! The tax rate will most likely be increased to maintain current local government spending levels.
Therefore, homeowners have two chances to ensure local government is not maintaining current spending habits on the backs of homeowners.
1. Reassessments by local government should be challenged if the new assessment value does not reflect the current market value in your area. If the assessment of your home is higher than the last evaluation, their assessment should be challenged and an appeal filed. In most cases, the appeal is a form letter substantiated reasons for you appeal.
2. Become involved in the local government especially at the time of setting the local government budget for the next year. Local government must generate revenue to maintain current spending levels. To achieve this goal with property values declining, politicians will raise the property tax rate.
These challenges are undertaken at two different points in time and their actions will have a direct impact on your own personal household budget. Become an activist for homeowners which currently shoulder the burden of local government spending.
Wednesday, December 15, 2010
Land Development Studio Class
At the University of North Carolina Charlotte, Civil and Environmental Engineering Department, I will be teaching the Land Development Studio class in the spring. This will be the third semester for this land development class and we have 25 students registered – more than twice the number of students in past classes.
The class is a “studio” format which will require significant work outside of class time. Each component will require autocad work, cost estimating, and a planning board presentation of their design. (I am the Mayor on the Planning Board and the Q & A session is a lot of fun!)
There are three major components and two site planning exercises:
The class is a “studio” format which will require significant work outside of class time. Each component will require autocad work, cost estimating, and a planning board presentation of their design. (I am the Mayor on the Planning Board and the Q & A session is a lot of fun!)
There are three major components and two site planning exercises:
Single Family: The class will be given a 36 acre topo and boundary survey with wetland areas to use in preparing a single family subdivision layout.
Multifamily: A boundary and top survey will be used to prepare a site plan including buildings, parking, access, water, sewer, and drainage facilities.
Mixed Use Project: A 245 acre boundary survey will be used as a base map in preparing a horizontal mixed use land plan.
Commercial Site Plan – as an in-class exercise, the students will prepare a site plan for a small commercial site plan.
Vertical Mixed Use – as an in-class exercise, the students will prepare a site plan for a small vertical mixed use site plan.
Vertical Mixed Use – as an in-class exercise, the students will prepare a site plan for a small vertical mixed use site plan.
There are NO undergraduate land development concentrations in civil engineering at any university other than at UNCC. The Studio class approach allows the students to fully develop their interpersonal skills while working in a team format with strict schedules. They get to use their creative design skills to complement their technical skills.
I have always mentored that I can always find someone to draft, calculate and design. The civil engineer with excellent interpersonal skills and creative thinking will be the generation that produces sustainable land development projects in the future. The land development classes at UNCC allow the students to explore beyond the technical! As UNCC civil engineers are hired by land development engineering firms, developers, and government, they will have less of a learning curve than their peers from other schools.
Monday, December 13, 2010
For your own interest:
The Federal budget includes:
Dept of Ed Annual Budget $47,000,000,000
HUD Annual Budget $44,000,000,000
Homeland Security Annual Budget $43,000,000,000
NET ANNUAL INTEREST on DEBT $209,000,000,000
Dept of Ed Annual Budget $47,000,000,000
HUD Annual Budget $44,000,000,000
Homeland Security Annual Budget $43,000,000,000
NET ANNUAL INTEREST on DEBT $209,000,000,000
For the next several weeks, I will be taking my real estate courses to keep my license active and become a broker. The time to do this necessary work does not leave enough time for much of anything else, including my blog. I will not be posting on a regular basis over the next several weeks.
Friday, December 10, 2010
Gentrification
Over the past year, I have been trying to give “out of the box” thinking concerning how the real estate development industry may change once the economy is back on track. I would like to summarize several of my thoughts:
1. Local governments will be more diligent in directing development patterns that must utilize existing infrastructure facilities i.e. roads, water and sewer.
2. It is only time before the federal government uses incentives for local governments to force the redevelopment or “urban renewal” of existing urban core areas.
3. Vertical mixed use projects will become the norm rather than the exception. If transportation and energy components are included in the plan, the project will receive density credits.
4. Sustainable projects will have to meet certain standards before moving forward through the regulatory process.
5. Local government will use eminent domain more as a development tool by driving the private sector to pre-disposed land uses. It may be partnering of developers with local government as the next stakeholder alliance.
6. Public facilities and services will be limited to urban core areas. Government expanding services or facilities beyond an urban limit will not be common practice.
This is only a short list of thoughts but the result of the above actions may cause urban gentrification. Instead of suburban flight of homebuyers with long commutes, we may experience urban revitalization with families moving closer to employment centers.
Gentrification is the socio-cultural change of an area resulting from people moving back into urban core areas and buying houses in less prosperous areas. Obviously this will displace homeowners and renters from the area due to rising housing costs and rents due to re-development, urban renewal or urban revitalization efforts supported by local government.
Long time residents will be forced to move due to increased property values and real estate taxes. Lower income residents in these areas will be forced to sell and move to a more affordable community. As the influx of middle and upper income wage earners move into neighborhoods experiencing transformation, the gentrification of the community occurs.
$5.00 per gallon of gas, “green” cars, and federal programs may alter local government’s approach to future development patterns. The result, jobs may have to go to where the workers are located rather than the workers moving to where the jobs are located. Or our suburban neighborhoods will transform into an unimaginable condition, over time. An action always has a reaction – what are your thoughts?
1. Local governments will be more diligent in directing development patterns that must utilize existing infrastructure facilities i.e. roads, water and sewer.
2. It is only time before the federal government uses incentives for local governments to force the redevelopment or “urban renewal” of existing urban core areas.
3. Vertical mixed use projects will become the norm rather than the exception. If transportation and energy components are included in the plan, the project will receive density credits.
4. Sustainable projects will have to meet certain standards before moving forward through the regulatory process.
5. Local government will use eminent domain more as a development tool by driving the private sector to pre-disposed land uses. It may be partnering of developers with local government as the next stakeholder alliance.
6. Public facilities and services will be limited to urban core areas. Government expanding services or facilities beyond an urban limit will not be common practice.
This is only a short list of thoughts but the result of the above actions may cause urban gentrification. Instead of suburban flight of homebuyers with long commutes, we may experience urban revitalization with families moving closer to employment centers.
Gentrification is the socio-cultural change of an area resulting from people moving back into urban core areas and buying houses in less prosperous areas. Obviously this will displace homeowners and renters from the area due to rising housing costs and rents due to re-development, urban renewal or urban revitalization efforts supported by local government.
Long time residents will be forced to move due to increased property values and real estate taxes. Lower income residents in these areas will be forced to sell and move to a more affordable community. As the influx of middle and upper income wage earners move into neighborhoods experiencing transformation, the gentrification of the community occurs.
$5.00 per gallon of gas, “green” cars, and federal programs may alter local government’s approach to future development patterns. The result, jobs may have to go to where the workers are located rather than the workers moving to where the jobs are located. Or our suburban neighborhoods will transform into an unimaginable condition, over time. An action always has a reaction – what are your thoughts?
Wednesday, December 8, 2010
Peak of the Week
Wednesday is the peak of the week. It is a good time for us to look back and peek forward. This chart on bank failures certainly shows us the historical approach government has taken and the seemingly slow start of bank investigation thus far?
Remember the ’89-’91 recession triggered primarily by the Savings and Loan failures! It would seem that investigations were initiated almost immediately. Would it not be a good thing to investigate these failures now?
140 banks failed in 2009
143 banks have failed in the first 10 months of 2010!
It is reported that the FDIC deposit-insurance fund is $21 billion in the hole after absorbing the losses from the bank failures.
Remember the ’89-’91 recession triggered primarily by the Savings and Loan failures! It would seem that investigations were initiated almost immediately. Would it not be a good thing to investigate these failures now?
140 banks failed in 2009
143 banks have failed in the first 10 months of 2010!
It is reported that the FDIC deposit-insurance fund is $21 billion in the hole after absorbing the losses from the bank failures.
Tuesday, December 7, 2010
Smart Growth Principles
In previous posts, I have tried to outline what could happen with the real estate development industry as the economy recovers. I do not believe the industry will go back to its old self. We have to think differently and pursue unconventional ideas. A proactive position will provide leadership OR government (at all levels) will dictate how we build, where we build, and what we build. The following smart growth principles may guide our future real estate development patterns.
• Create Range of Housing Opportunities and Choices
• Create Walkable Neighborhoods
• Encourage Community and Stakeholder Collaboration
• Foster Distinctive, Attractive Communities with a Strong Sense of Place
• Make Development Decisions Predictable, Fair and Cost Effective
• Mix Land Uses
• Preserve Open Space, Farmland, Natural Beauty and Critical Environmental Areas
• Provide a Variety of Transportation Choices
• Strengthen and Direct Development Towards Existing Communities
• Take Advantage of Compact Building Design
It doesn’t seem the “Livable Communities” act will make it through the lame duck session. Its future will go with Sen. Dodd as he leaves Washington, DC. This doesn’t mean that government will stop their pursuit of “sustainable” growth policies that will guide our industry into the future.
The “sustainable” real estate development approach may in a significant way direct future development toward the urban core. Jobs, buyers and services will be channeled to urban centers. Urban cores or urban centers will be defined by the availability of existing water and sewer facilities and not by population! I expect local governments will not approve of extending existing facilities beyond urban core areas – simply because they can’t maintain what they own now.
After all, how would your life change if gas went up to $5 per gallon or gas was rationed and your daily commute was sixty miles?
Would you move closer to your work?
Buy a more fuel efficient car?
Find a new job?
Take public transportation?
Car pool?
Retire at age 30 like workers in Europe?
Go on unemployment for three years and hope gas prices go down?
Shifting job centers, housing, services, shopping, and recreation facilities to urban centers will become the norm. This shift in real estate development philosophy and the new reality of higher prices and cost of living will ultimately have a dramatic impact on our urban centers. This week, I will outline one of the impacts.
• Create Range of Housing Opportunities and Choices
• Create Walkable Neighborhoods
• Encourage Community and Stakeholder Collaboration
• Foster Distinctive, Attractive Communities with a Strong Sense of Place
• Make Development Decisions Predictable, Fair and Cost Effective
• Mix Land Uses
• Preserve Open Space, Farmland, Natural Beauty and Critical Environmental Areas
• Provide a Variety of Transportation Choices
• Strengthen and Direct Development Towards Existing Communities
• Take Advantage of Compact Building Design
It doesn’t seem the “Livable Communities” act will make it through the lame duck session. Its future will go with Sen. Dodd as he leaves Washington, DC. This doesn’t mean that government will stop their pursuit of “sustainable” growth policies that will guide our industry into the future.
The “sustainable” real estate development approach may in a significant way direct future development toward the urban core. Jobs, buyers and services will be channeled to urban centers. Urban cores or urban centers will be defined by the availability of existing water and sewer facilities and not by population! I expect local governments will not approve of extending existing facilities beyond urban core areas – simply because they can’t maintain what they own now.
After all, how would your life change if gas went up to $5 per gallon or gas was rationed and your daily commute was sixty miles?
Would you move closer to your work?
Buy a more fuel efficient car?
Find a new job?
Take public transportation?
Car pool?
Retire at age 30 like workers in Europe?
Go on unemployment for three years and hope gas prices go down?
Shifting job centers, housing, services, shopping, and recreation facilities to urban centers will become the norm. This shift in real estate development philosophy and the new reality of higher prices and cost of living will ultimately have a dramatic impact on our urban centers. This week, I will outline one of the impacts.
Monday, December 6, 2010
If not NOW – When?
Why homebuyers should be motivated to buy NOW rather than wait:
Please review the following list of reasons why it is a good time to buy a home. Please include additional reasons if not listed.
1. The supply is high so your negotiating position will not get any better
2. Buyers do not have to make concessions – the right home is available
3. Plenty of homes available in the best locations to raise a family and call it “home”
4. Now is the best time to purchase at the best possible price
5. Buyers can find a mortgage with the best terms
6. Interest rates remain at historical lows but NOT for long
7. Long term appreciation opportunities can be realized
8. Mortgage interest remains a tax deduction
If not NOW – When?
I have been told by first time homebuyers:
They do not want to take on a mortgage because they are afraid of losing their job.
They will not pursue a mortgage because they don’t think they could qualify.
Why the rush? Prices are still coming down, the economy is in the pits, and interest rates have been low for a long period of time. No sense of urgency.
Not so good economic news - almost daily and they lack confidence in things getting better anytime soon.
This recession is very much different from previous housing recessions.
We have to work with homebuyers one at a time and one step at a time.
We have to work with sellers and achieve an “overwhelming” price to differentiate a home from the competition.
Please review the following list of reasons why it is a good time to buy a home. Please include additional reasons if not listed.
2. Buyers do not have to make concessions – the right home is available
3. Plenty of homes available in the best locations to raise a family and call it “home”
4. Now is the best time to purchase at the best possible price
5. Buyers can find a mortgage with the best terms
6. Interest rates remain at historical lows but NOT for long
7. Long term appreciation opportunities can be realized
8. Mortgage interest remains a tax deduction
If not NOW – When?
I have been told by first time homebuyers:
They do not want to take on a mortgage because they are afraid of losing their job.
They will not pursue a mortgage because they don’t think they could qualify.
Why the rush? Prices are still coming down, the economy is in the pits, and interest rates have been low for a long period of time. No sense of urgency.
Not so good economic news - almost daily and they lack confidence in things getting better anytime soon.
This recession is very much different from previous housing recessions.
We have to work with homebuyers one at a time and one step at a time.
We have to work with sellers and achieve an “overwhelming” price to differentiate a home from the competition.
Friday, December 3, 2010
Just for Fun – TV versus Movies
Top 5 salaries in TV and movies (in millions):
TV Movies
1. Oprah $350 Johnny Depp $75
2. Dr. Phil $45 Ben Stiller $53
3. Letterman $40 Tom Hanks $45
4. Simon Cowell $36 Adam Sandler $40
5. Judge Judy $30 Leonardo DiCaprio $28
Just for fun:
Add up the salaries of the top five CEO’s, athletes, TV stars and movie stars and it is approximately:
Their combined salary $1,200,000,000
Salary of ONLY the 5th highest paid Hedge Fund manager $1,300,000,000
Oh, I forgot to add in the top five professor salaries!
The 5th highest paid Hedge Fund manager earns more in ONE DAY than the average US Citizen wage earner makes in ONE YEAR! Would our economic problems be linked in some way to hedge funds? AND Hedge Fund managers fly under the radar???
What is wrong with this picture?
TV Movies
1. Oprah $350 Johnny Depp $75
2. Dr. Phil $45 Ben Stiller $53
3. Letterman $40 Tom Hanks $45
4. Simon Cowell $36 Adam Sandler $40
5. Judge Judy $30 Leonardo DiCaprio $28
Just for fun:
Add up the salaries of the top five CEO’s, athletes, TV stars and movie stars and it is approximately:
Their combined salary $1,200,000,000
Salary of ONLY the 5th highest paid Hedge Fund manager $1,300,000,000
Oh, I forgot to add in the top five professor salaries!
The 5th highest paid Hedge Fund manager earns more in ONE DAY than the average US Citizen wage earner makes in ONE YEAR! Would our economic problems be linked in some way to hedge funds? AND Hedge Fund managers fly under the radar???
What is wrong with this picture?
Thursday, December 2, 2010
Salaries in MILLIONS
Top 5 CEO’s Top 5 Athletes
1. Larry Ellison $84.5 Tiger Woods $110.0
2. Ray Elliott $33.4 Kobe Bryant $45.0
3. Ray Irani $31.4 David Beckham $42.0
4. Mark Hurd $24.2 LeBron James $40.0
5. James Hackett $23.5 Phil Mickelson $40.0
I would guess that you will know each of the athletes listed above and their sport.
However, can you list the companies associated with their CEO?
How about comparing salaries to the highest paid professor by subject:
Note: these salaries are not in millions!
Law $134,146
Engineering $112,679
Business Management $109,919
Computer Science $101,219
Air Transportation $ 99,803
How much does a Hedge Fund manager (refer to previous post) earn per MINUTE?
1. Larry Ellison $84.5 Tiger Woods $110.0
2. Ray Elliott $33.4 Kobe Bryant $45.0
3. Ray Irani $31.4 David Beckham $42.0
4. Mark Hurd $24.2 LeBron James $40.0
5. James Hackett $23.5 Phil Mickelson $40.0
I would guess that you will know each of the athletes listed above and their sport.
However, can you list the companies associated with their CEO?
How about comparing salaries to the highest paid professor by subject:
Note: these salaries are not in millions!
Law $134,146
Engineering $112,679
Business Management $109,919
Computer Science $101,219
Air Transportation $ 99,803
How much does a Hedge Fund manager (refer to previous post) earn per MINUTE?
Wednesday, December 1, 2010
Hedge Funds & Top Paid Managers
From Wikipedia, the free encyclopedia
In most jurisdictions, hedge funds are open only to a limited range of professional or wealthy investors who meet criteria set by regulators, and are accordingly exempted from many of the regulations that govern ordinary investment funds. Investors who pay a performance fee to the fund's investment manager
As the name implies, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, notably short selling and derivatives.
The 25 largest hedge fund managers had $519.7 billion in assets under management as of December 31, 2009. The top five hedge funds are:
JP Morgan Chase ($53.5 billion)
Bridgewater Associates ($43.6 billion)
Paulson & Co. ($32 billion)
Brevan Howard ($27 billion)
Soros Fund Management ($27 billion)
Top Earning Hedge Fund Mangers 2009 NET Compensation
1.David Tepper, Appaloosa Management Est. 2009 personal earnings: $4.0 billion
2. George Soros, Soros Fund Management Est. 2009 personal earnings: $3.3 billion
3. James Simons, Renaissance Technologies Est. 2009 personal earnings: $2.5 billion
4: John Paulson, Paulson & Company Est. 2009 personal earnings: $2.3 billion
5: Steve Cohen, SAC Capital Advisors Est. 2009 personal earnings: $1.4 billion
6. (tie): Carl Icahn, Icahn Capital Est. 2009 personal earnings: $1.3 billion
6. (tie): Edward Lampert, ESL Investments Est. 2009 personal earnings: $1.3 billion
A "lightly" regulated industry pays well doesn't it! In comparison, let’s look at: CEO’s, movie stars, sports, entertainers, etc –tomorrow’s blog post. Oh, by the way, CEO's get alot of attention for how much they earn!
In most jurisdictions, hedge funds are open only to a limited range of professional or wealthy investors who meet criteria set by regulators, and are accordingly exempted from many of the regulations that govern ordinary investment funds. Investors who pay a performance fee to the fund's investment manager
As the name implies, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, notably short selling and derivatives.
The 25 largest hedge fund managers had $519.7 billion in assets under management as of December 31, 2009. The top five hedge funds are:
JP Morgan Chase ($53.5 billion)
Bridgewater Associates ($43.6 billion)
Paulson & Co. ($32 billion)
Brevan Howard ($27 billion)
Soros Fund Management ($27 billion)
Top Earning Hedge Fund Mangers 2009 NET Compensation
1.David Tepper, Appaloosa Management Est. 2009 personal earnings: $4.0 billion
2. George Soros, Soros Fund Management Est. 2009 personal earnings: $3.3 billion
3. James Simons, Renaissance Technologies Est. 2009 personal earnings: $2.5 billion
4: John Paulson, Paulson & Company Est. 2009 personal earnings: $2.3 billion
5: Steve Cohen, SAC Capital Advisors Est. 2009 personal earnings: $1.4 billion
6. (tie): Carl Icahn, Icahn Capital Est. 2009 personal earnings: $1.3 billion
6. (tie): Edward Lampert, ESL Investments Est. 2009 personal earnings: $1.3 billion
A "lightly" regulated industry pays well doesn't it! In comparison, let’s look at: CEO’s, movie stars, sports, entertainers, etc –tomorrow’s blog post. Oh, by the way, CEO's get alot of attention for how much they earn!
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