What's In, What's Out with Home Buyers in 2009?
by Mark Nash
What's IN
1. Sidelined home buyers. Family or lifestyle additions or changes made in buyers households in the last three years are forcing those waiting out the market transition to finally get off the fence and say, it's time for our family to buy the new home that suits our new needs.
2. Home uplifts. Not a big renovation, but some new finishes that can visually holdover stay-put home sellers. Not a gut rehab to the studs new kitchen, but new flooring, countertops and appliances.
3. Collaborative home pricing. The old days of home sellers configuring a homes price are out. What's new is that the seller with their agent look at closed comparables, set a price, then the buyer and their agent agree or disagree, but in the end, a mortgage lender and their appraiser will set the price, as they are assuming the most risk in the transaction.
4. Balanced reporting by real estate and personal finance journalists. Consumers learned in 2008 that the 'doom and gloom" residential real estate market headlines don't apply to all markets. What's been lost in the foreclosure hype is that there are still stories of homes selling in short market times (in as little as 3 days), homes selling at full price and some selling with multiple contracts on the table. Existing home sales will be 5.02 million versus 5.652 million for 2007, a decrease of just over eleven percent, considerably less that the recent correction in the U.S. stock market, plus a realistic view that over five million people purchased a home despite the headlines in 2008.
5. Creative home seller financing. Exhausted home sellers are turning to self-financing to move properties. Installment sale contracts and lease to own are the most popular and effective ways for sellers to begin to receive income from a property that has languished on the market in 2008.
6. Real estate agents as a housing resource not a salesperson. New-age real estate agents help consumers through the home sale or purchase process which takes a skilled agent who is not driven by sales, but by providing resources to help the consumer determine if they should buy or sell a home. Home ownership is not for everyone. Factors such as a job move in 3 years or less, marginal credit and lack of interest in home maintenance can be reasons for a resource-driven agent to advise their client not to buy.
7. Property tax appeals. With home prices dropping, many savvy home owners are appealing their property taxes. This is especially attractive to those looking to sell their home in 2009. With a competitive marketplace, those with the most realistic taxes are more likely to offer buyers an overall lower expense in home ownership.
8. House therapists. Divided partners in a home are increasingly relying on an independent third party (house therapist or coach) to bring household relationships to common ground on such prickly issues such as to stay or move, how much to spend on remodeling or decorating, or spending nothing at all. Third parties can outline the benefits and pitfalls of over-spending on a new larger home or weighing in on a spouses desire to over-improve for the neighborhood. With less equity and with the financial stakes higher smart couples hire a home therapist to wrangle concessions and agreements out with their significant other instead of doing damage to their relationship by going head-to-head with them.
9. Architectural overhead garage doors. After years of bland vanilla garage doors, the architecture has permeated the door most people look at the most. Traditional styling has arrived with mullioned windows, faux wrought iron hinges and latches that provide the original non-overhead garage door look. Contemporary looks now include the adjacent siding applied over the door for a seamless look, much like the panels installed on refrigerator doors to complement cabinets in a kitchen.
10. Loveseats. A pair or trio is gaining acceptance as the functional way to rearrange a living or family room. Consumers appreciate the ease at which they can rearrange them, move an extra one to another room, or provide long-term furniture flexibility in future homes. Plus, they're tired of sitting miles away from others on over-sized sectional sofas.
11. The master bed as a throne. With consumer spending down and more nesting at home, home owners are focusing on making their bed like an at-home luxury hotel experience. Posh linens, pillows and mattresses create a getaway without leaving home.
12. Older war-horse appliances. Collectable, working appliances form the 1940's through the late 1980's have found a new niche among homeowners who appreciate their rock-solid construction and durability. Harvest gold double ovens from the 1970's have been repainted a metallic red and go from boring to bold. Cold spot refrigerators from the 1950's refinished in sky blue perks up the butler’s pantry in suburban home. And, the early 1960's dryer that looks like it's from a Jet son house painted pink to match punches up the in-unit laundry room in a condominium.
13. Dining chairs that don't match. With consumers watching their non-essential spending closely and electing to stay home to entertain friends, many have found a quick pick-me-up for their dining room suite, mismatched pairs or single chairs. Feedback from friends or family has been favorable to this easy and cost effective way to say welcome to my cutting edge table.
14. Obama era paint colors. President elect Barak Obama will add a fresh, younger and forward-looking feel to residential interior paint decor in the spaces at The White House where he and future First Lady Michelle have a say. Look for parchment whites, cashmere yellows, bright optimistic blues and radiant gold’s. Depressing Bush era colors such as plum, chocolate brown, rusty mustard and pale sage will gladly be replaced by more optimistic colors in American homes.
What's OUT
1. Fixer-upper homes. With larger down payments required by mortgage lenders and consumer credit cards mixed out, home buyers want a home in move-in condition. The DYI days are on the wane as buyers want to inherit new kitchens and bathrooms.
2. Foreclosure fluff. The foreclosure rate nationally in 2008 was just under 3 percent. In the Great Depression it was just over forty-percent.
3. Home buyers endless "circling" prospective short-list properties. Overly optimistic thinking by buyers to circle a preferred property indefinitely, often for months, waiting for further price reductions or to wear out long weary sellers. This practice has backfired for buyers who practice this style of pre-negotiating. They often loose their short-list dream home and frustrate savvy price-right sellers. Ditto the bottom-feeder buyers.
4. Real estate agents that started career in the boom. It was easy for any new real estate agent to have instant clients during the boom years. After all, they thought the business was about order (contracts) taking. Now they've realized they didn't build a long-term client base during the boom or acquire knowledge about servicing client’s needs in a not-so-easy market.
5. Home staging. A recently over-used low cost marketing band-aid for vacant or occupied homes with longer than normal market times. Buyers have said enough of the non-professional usage of assorted leftover props placed around a for-sale home to make it supposedly homey. Buyers say, market it as it is and clear out the tired silk flowers and stale potpourri.
6. Indoor-outdoor carpet. The staples of quick-fix home sellers for basements, balconies, screened porches and lanai’s, buyers have said enough. Many have told agents that inexpensive indoor-outdoor carpet is visual pollution and often masks flaws in a home.
7. Track lighting. Thought of by homeowners to be a quick way to get an art gallery look, many prospective buyers usually take them out and discount their appeal. As one Gen-X home buyer said to me "Why do sellers install them up when they don't really have any interesting artwork or architectural features to spotlight? They bring undue attention to nothing."\
Published: December 31, 2008
Use of this article without permission is a violation of federal copyright laws.
Saturday, January 10, 2009
Top 10 events that impacted Real Estate in 2008
The Top 10 Events That Impacted Real Estate in 2008 are:
1. The Bailout: September 17th
Most notably, the one single event of the year was the announcement of the "Silver Bullet" designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks. Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.
2. The Presidential Election
In one of the most competitive, contentious, divisive and yet historic political campaigns, the country responded with the largest voter turnout in history to elect an African American, Barak Obama as president. "I have a dream" has taken a huge step toward fulfillment. However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.
3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others
Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history. Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo. 2008 reminded us that nothing lasts forever and everything is replaceable.
4. Facing Foreclosure Frenzy
As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that, by the end of 2008, there would be more than one million REOs on the books.
5. Home Prices Spiral Downward
The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.
6. NAR ? DOJ Settlement
Finally the long and protracted 2.5 year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it's back to business.
7. Brokers Go Bust
Changing names, merging, consolidating, filing bankruptcy and closing branches was the order of the day throughout 2008 as literally thousands of real estate brokerage companies went out of business. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filing for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.
8. Keeping It Short
Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.
9. ActiveRain Explodes Past 100,000 Members
As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.
10. NAR Celebrates 100 Years
In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream.
1. The Bailout: September 17th
Most notably, the one single event of the year was the announcement of the "Silver Bullet" designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks. Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.
2. The Presidential Election
In one of the most competitive, contentious, divisive and yet historic political campaigns, the country responded with the largest voter turnout in history to elect an African American, Barak Obama as president. "I have a dream" has taken a huge step toward fulfillment. However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.
3. In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others
Barely one year ago in 2007 these companies were not only household names but were considered financial giants. In one short year they have become a factoid of history. Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo. 2008 reminded us that nothing lasts forever and everything is replaceable.
4. Facing Foreclosure Frenzy
As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008. At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure. RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that, by the end of 2008, there would be more than one million REOs on the books.
5. Home Prices Spiral Downward
The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.
6. NAR ? DOJ Settlement
Finally the long and protracted 2.5 year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November. In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement. In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process. Now it's back to business.
7. Brokers Go Bust
Changing names, merging, consolidating, filing bankruptcy and closing branches was the order of the day throughout 2008 as literally thousands of real estate brokerage companies went out of business. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filing for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.
8. Keeping It Short
Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment. By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.
9. ActiveRain Explodes Past 100,000 Members
As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry. With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time. It goes without saying that ActiveRain has proven that social networking has made a home in real estate.
10. NAR Celebrates 100 Years
In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream.
L-1 Business Visa
L-1 business visas allow foreigners a chance to succeed in America
ORLANDO, Fla. – Dec. 18, 2008 – For Brazilian Renato Rosa, crisis equals opportunity.
Rosa thinks the current economic recession presents a chance for him and other foreigners to start companies – and achieve a piece of the American dream.
“You can have a crisis anywhere,” Rosa said. “A lot of my friends think I’m crazy for starting a business here, but I’m strong,” he said.
In September, Rosa opened an Orlando subsidiary of ArtiPlacWood, a 50-year-old wood- import business his father started in Brazil with little money. Rosa said his father’s legacy gave him the courage to start an Orlando subsidiary, despite the worst economic crisis since the Great Depression.
Many foreign nationals have taken the same leap of faith this year. Like Rosa, they have come to the U.S. on a L-1 business visa.
They are non-immigrant visas typically used by large foreign companies to create subsidiaries or to send employees with specialized knowledge to work in existing U.S. offices. L-1 visas, which can take from a couple of weeks to four months to process, are being issued in larger numbers: from 54,000 in 2000 to more than 84,000 this year, according to the U.S. Bureau of Consular Affairs.
Many small foreign businesses have used L-1 visas to expand internationally, with most of the visa holders coming from England, India, Venezuela, Brazil and Colombia, according to local immigration lawyers.
Brazilian Mario Chiavegatti, 52, and his wife, Roseli Zambon, 48, are among the many foreign nationals who have opened businesses this year.
Their company, DynaSource, sells radiation oncology machines to Florida hospitals and clinics. Chiavegatti and Zambon said launching their business in the U.S was easier than it would have been in Brazil, where they said rampant corruption and lack of capital are big hurdles.
“From the difficulty we have in Brazil selling this equipment, selling it here is a piece of cake,” Chiavegatti said.
“Crisis?” said Zambon. “You have to go to Brazil to see what a crisis is.”
Immigration lawyer James Lavigne said people such as Chiavegatti and Zambon are vital to the U.S. economy because their visas stipulate that they must hire American workers.
“The best time to start a business is when business is bad for everybody,” Lavigne said. “It helps our economy now because people are bringing money here to invest and hire people.”
Carlos Thurdekoos, a business broker whose clients include foreign nationals, said plummeting real-estate prices have allowed many foreign start-ups to expand cheaply and fill a void in the marketplace.
“They’re strategically placing themselves to provide services in the midst of the crisis,” he said.
Rosa and Chiavegatti already have plans to expand their businesses. Chiavegatti said he has hired two people and plans to hire a few more in coming months. He is in negotiations to sell four machines – at $300,000 to $400,000 each – to local hospitals and clinics.
Rosa is taking advantage of real-estate bargains and will close on a warehouse for his business next week. He said the warehouse will benefit him and the U.S. economy.
“There’s a trickle-down effect,” Rosa said. “When I buy the warehouse, I have to pay taxes on the warehouse, and I have to hire people to run the warehouse.”
One concern for Rosa and Chiavegatti is that their companies must be successful for them to remain in the U.S. The recession makes their residency status even more tenuous.
Both men have bought homes and plan to reside permanently in Orlando. They said they aren’t worried about returning to Brazil if their businesses fail.
“We’re still excited. If we’re all negative about the crisis, then it’s going to get worse,” Chiavegatti said.
Rosa also has a positive outlook.
“This is a challenge for me, but this is also a dream for me,” he said. “Hopefully I’ll reach the American dream.”
ORLANDO, Fla. – Dec. 18, 2008 – For Brazilian Renato Rosa, crisis equals opportunity.
Rosa thinks the current economic recession presents a chance for him and other foreigners to start companies – and achieve a piece of the American dream.
“You can have a crisis anywhere,” Rosa said. “A lot of my friends think I’m crazy for starting a business here, but I’m strong,” he said.
In September, Rosa opened an Orlando subsidiary of ArtiPlacWood, a 50-year-old wood- import business his father started in Brazil with little money. Rosa said his father’s legacy gave him the courage to start an Orlando subsidiary, despite the worst economic crisis since the Great Depression.
Many foreign nationals have taken the same leap of faith this year. Like Rosa, they have come to the U.S. on a L-1 business visa.
They are non-immigrant visas typically used by large foreign companies to create subsidiaries or to send employees with specialized knowledge to work in existing U.S. offices. L-1 visas, which can take from a couple of weeks to four months to process, are being issued in larger numbers: from 54,000 in 2000 to more than 84,000 this year, according to the U.S. Bureau of Consular Affairs.
Many small foreign businesses have used L-1 visas to expand internationally, with most of the visa holders coming from England, India, Venezuela, Brazil and Colombia, according to local immigration lawyers.
Brazilian Mario Chiavegatti, 52, and his wife, Roseli Zambon, 48, are among the many foreign nationals who have opened businesses this year.
Their company, DynaSource, sells radiation oncology machines to Florida hospitals and clinics. Chiavegatti and Zambon said launching their business in the U.S was easier than it would have been in Brazil, where they said rampant corruption and lack of capital are big hurdles.
“From the difficulty we have in Brazil selling this equipment, selling it here is a piece of cake,” Chiavegatti said.
“Crisis?” said Zambon. “You have to go to Brazil to see what a crisis is.”
Immigration lawyer James Lavigne said people such as Chiavegatti and Zambon are vital to the U.S. economy because their visas stipulate that they must hire American workers.
“The best time to start a business is when business is bad for everybody,” Lavigne said. “It helps our economy now because people are bringing money here to invest and hire people.”
Carlos Thurdekoos, a business broker whose clients include foreign nationals, said plummeting real-estate prices have allowed many foreign start-ups to expand cheaply and fill a void in the marketplace.
“They’re strategically placing themselves to provide services in the midst of the crisis,” he said.
Rosa and Chiavegatti already have plans to expand their businesses. Chiavegatti said he has hired two people and plans to hire a few more in coming months. He is in negotiations to sell four machines – at $300,000 to $400,000 each – to local hospitals and clinics.
Rosa is taking advantage of real-estate bargains and will close on a warehouse for his business next week. He said the warehouse will benefit him and the U.S. economy.
“There’s a trickle-down effect,” Rosa said. “When I buy the warehouse, I have to pay taxes on the warehouse, and I have to hire people to run the warehouse.”
One concern for Rosa and Chiavegatti is that their companies must be successful for them to remain in the U.S. The recession makes their residency status even more tenuous.
Both men have bought homes and plan to reside permanently in Orlando. They said they aren’t worried about returning to Brazil if their businesses fail.
“We’re still excited. If we’re all negative about the crisis, then it’s going to get worse,” Chiavegatti said.
Rosa also has a positive outlook.
“This is a challenge for me, but this is also a dream for me,” he said. “Hopefully I’ll reach the American dream.”
The recession has arrived in Canada
The recession has arrived in Canada -- and brutally so.
Jobs figures from Canada and the United Sates Friday show North America is in the midst of a mass layoff. The credit crisis that erupted on Wall Street 18 month ago, felling banks and stock markets, choking off credit and shuttering factories along the way, has reached its final destination at a home near you.
The Canadian economy shed 71,000 jobs in November, the biggest drop in 25 years. The unemployment rate rose 0.1% to 6.3%. More than 500,000 U.S. jobs were lost.
This beast is just getting going. The United States is now looking at its longest recession in the post-war period. Canada, which went through a brutal recession and major economic overhaul in the early 1990s, is unlikely to fall so hard this time but its manufacturing sector will be gutted.
Taxpayers in both countries will pay a hefty price to pull themselves out of the hole as governments rush to fill a spending void left by consumers long ago out of credit and now out of jobs. Long after the recession is over, the defining feature of the global economy will be the handprint of government that is plastered all over it.
It is the warp speed of the deterioration in the U.S. economy over the past couple of months that has left analysts shell-shocked.
"It's one thing for financial markets to experience a free fall but it's truly a rare phenomenon for a US$14-trillion economy to take such a sharp and profound turn," said Richard Yamarone, chief economist at Argus Research in New York. "It really does look as if someone flicked the off-switch on the U.S. economy during September."
David Rosenberg, chief North American economist at Merrill Lynch, who has long been predicting awful things for the U.S. economy, notes two-thirds of the 1.9-million jobs the United States has shed since the recession began in December have come in the past three months.
"We saw this with home prices, we saw this with equity values, we've seen it with bond yields, we've seen it with consumer spending and now we're seen it with employment," Mr. Rosenberg said.
Mr. Rosenberg believes the U.S. economy will likely contract at a 5% annual rate in the fourth quarter and will retreat at rates of 3% to 4% during the first half of 2009. The economy has not contracted for three quarters in row in half a century.
He sees the unemployment rate rising to 9%, surpassing the 6.3% high of the tech wreck, the 7.8% high in 1992 but not quite the 10.8% peak of the early-1980s.
Because of the massive credit deleveraging that needs to go on among both financial institutions and consumers, Mr. Rosenberg believes the recession will feel unlike anything the current generation of workers, borrowers and homeowners has known. He is alarmingly calling it GDII, as in the Great Depression Two.
The service sector will feel the brunt of the job losses this time around, the U.S. manufacturing sector having picked up and moved shop to cheaper destinations in China long ago.
In contrast, it is the manufacturing sector that is being eviscerated in Canada.
Stéfane Marion, assistant chief economist at National Bank, notes that for the first time on record, the gap between Ontario's unemployment rate at 7.1% and that in the rest of Canada -- where the jobless rate actually edged down to 5.9% last month -- rose above a full percentage point in November, a testament to the huge manufacturing restructuring going on.
The industry has shed 388,000 jobs since peaking in 2002 but the very fact it was peaking at the start of the new millennium, shows how far behind Canada is modernizing its economy.
"If you look at manufacturing employment scaled to 1980, Canada is just slightly below where it was back then whereas in Japan they've come down 15%, in the U.K. they're down 40 to 45% [in the U.S. its down 25%]," said Derek Holt, senior vice-president of economics at Scotia Capital. "We hid behind the cheaper dollar and didn't pursue the productivity gains that other manufacturers around the world did so now we face the further catch-up."
As the private sector retreats into its shell, governments the world over are trying to fill the vacuum with bailouts and stimulus galore in all-out effort to fend off deflation.
Toronto-Dominion Bank forecasts U.S. government borrowing will hit $2.3-trillion next year or 16% of GDP and a whopping US$4-trillion by 2011. And there is little doubt the Conservatives will bring out a whopping budget in January, if only to appease the Opposition.
"There is nothing like a once-in-a-century global financial crisis to throw nearly 30 years of established economic orthodoxy to the wind," Meny Grauman at CIBC World Markets, wrote Friday. "Economic policies that just last year would have been considered thoroughly irresponsible at best, are now held up as nothing less than crucial drivers of market stability. This apparent about face has a tinge of hypocrisy, but is rooted in desperation. Desperate times call for desperate measures, and these are certainly desperate times."
Jobs figures from Canada and the United Sates Friday show North America is in the midst of a mass layoff. The credit crisis that erupted on Wall Street 18 month ago, felling banks and stock markets, choking off credit and shuttering factories along the way, has reached its final destination at a home near you.
The Canadian economy shed 71,000 jobs in November, the biggest drop in 25 years. The unemployment rate rose 0.1% to 6.3%. More than 500,000 U.S. jobs were lost.
This beast is just getting going. The United States is now looking at its longest recession in the post-war period. Canada, which went through a brutal recession and major economic overhaul in the early 1990s, is unlikely to fall so hard this time but its manufacturing sector will be gutted.
Taxpayers in both countries will pay a hefty price to pull themselves out of the hole as governments rush to fill a spending void left by consumers long ago out of credit and now out of jobs. Long after the recession is over, the defining feature of the global economy will be the handprint of government that is plastered all over it.
It is the warp speed of the deterioration in the U.S. economy over the past couple of months that has left analysts shell-shocked.
"It's one thing for financial markets to experience a free fall but it's truly a rare phenomenon for a US$14-trillion economy to take such a sharp and profound turn," said Richard Yamarone, chief economist at Argus Research in New York. "It really does look as if someone flicked the off-switch on the U.S. economy during September."
David Rosenberg, chief North American economist at Merrill Lynch, who has long been predicting awful things for the U.S. economy, notes two-thirds of the 1.9-million jobs the United States has shed since the recession began in December have come in the past three months.
"We saw this with home prices, we saw this with equity values, we've seen it with bond yields, we've seen it with consumer spending and now we're seen it with employment," Mr. Rosenberg said.
Mr. Rosenberg believes the U.S. economy will likely contract at a 5% annual rate in the fourth quarter and will retreat at rates of 3% to 4% during the first half of 2009. The economy has not contracted for three quarters in row in half a century.
He sees the unemployment rate rising to 9%, surpassing the 6.3% high of the tech wreck, the 7.8% high in 1992 but not quite the 10.8% peak of the early-1980s.
Because of the massive credit deleveraging that needs to go on among both financial institutions and consumers, Mr. Rosenberg believes the recession will feel unlike anything the current generation of workers, borrowers and homeowners has known. He is alarmingly calling it GDII, as in the Great Depression Two.
The service sector will feel the brunt of the job losses this time around, the U.S. manufacturing sector having picked up and moved shop to cheaper destinations in China long ago.
In contrast, it is the manufacturing sector that is being eviscerated in Canada.
Stéfane Marion, assistant chief economist at National Bank, notes that for the first time on record, the gap between Ontario's unemployment rate at 7.1% and that in the rest of Canada -- where the jobless rate actually edged down to 5.9% last month -- rose above a full percentage point in November, a testament to the huge manufacturing restructuring going on.
The industry has shed 388,000 jobs since peaking in 2002 but the very fact it was peaking at the start of the new millennium, shows how far behind Canada is modernizing its economy.
"If you look at manufacturing employment scaled to 1980, Canada is just slightly below where it was back then whereas in Japan they've come down 15%, in the U.K. they're down 40 to 45% [in the U.S. its down 25%]," said Derek Holt, senior vice-president of economics at Scotia Capital. "We hid behind the cheaper dollar and didn't pursue the productivity gains that other manufacturers around the world did so now we face the further catch-up."
As the private sector retreats into its shell, governments the world over are trying to fill the vacuum with bailouts and stimulus galore in all-out effort to fend off deflation.
Toronto-Dominion Bank forecasts U.S. government borrowing will hit $2.3-trillion next year or 16% of GDP and a whopping US$4-trillion by 2011. And there is little doubt the Conservatives will bring out a whopping budget in January, if only to appease the Opposition.
"There is nothing like a once-in-a-century global financial crisis to throw nearly 30 years of established economic orthodoxy to the wind," Meny Grauman at CIBC World Markets, wrote Friday. "Economic policies that just last year would have been considered thoroughly irresponsible at best, are now held up as nothing less than crucial drivers of market stability. This apparent about face has a tinge of hypocrisy, but is rooted in desperation. Desperate times call for desperate measures, and these are certainly desperate times."
Adopt Warren's view
Adopt Buffett's long-term view - and you won't sell at the bottom
Moneywise with Martha Myron
When will market values bounce back? In the midst of the pain some (not all) are feeling every time that portfolio or pension statement arrives, is it time to think about adding to your investments? Not likely, is your reaction!
This author doesn't get it, you are thinking - since this week we've all been told that the US has been in a recession since December 2007. Isn't it nice to finally get the affirmation for something almost everyone knew was here?
Warren Buffet wrote a wonderful article in the New York Times, October 16, 2008. "Buy American. I am." It is a known fact that Bermudians by the droves get on planes this time of year to do just that, yet when it comes to watching the performance of the very companies that they have just shopped to exhaustion, we are unable to tolerate downturns of any kind.
It is also probably predictable right now that another whole raft of investors are putting in sell orders because they can no longer bear watching their assets depreciate further - even if only on paper. We have so many of us been through this before - remember?
Think of your coming holiday shopping days and that relentless drive in every other shopping expedition where we seek to find the best bargain ever - but we cannot bring ourselves to use the same logic with capital markets. It is an extraordinary phenomenon that has financial behaviour research scientists still shaking their heads.
Statistically and unfortunately, a large segment of investors large and small alike will continue to succumb every single time to the constant negativity streaming from financial publications and sell out - at the bottom. They have decided to take control, to put an end to the uncertainty, feeling that they even if the portfolio is managed by experienced time-trialed professional portfolio managers, this is the end of the tolerance line.
For some this will be the best decision they could make under the circumstances, if for instance, they've invested in a levered fund under redemption attack. And it is equally true that others may live to regret a permanent loss in value of a long-term well performing globally diversified index fund.
Now that I have earned your annoyance, why would I encourage this thinking? Investment markets can be driven as much by about perception as they are based on real facts. In the last couple of weeks, there has been a steady drumbeat of comments: "market bottoming, valuations cheapest in 40 years, we are on the turn, could be time to go back in, lots of cash sitting on the sidelines, mortgage refinancing going up in the US, first sign of a comeback and on." Is it time?
No one can say for certain, but why not start now by doing a bit of research locally and putting small amounts back in over time. There is no question that many good securities are very undervalued. And that ultimately the market will come back - here also is a good opportunity for you to read up on business and economic cycles by visiting a basic investing website such as www.smartmoney.com or www.thefool.co.uk. Smart money even offers the chance to run a mock portfolio.
Since you may be feeling somewhat uncertain, where should you start stepping back into the markets? A good asset allocated fund, otherwise known as a managed portfolio, with a slant toward the more conservative side is a good choice. These mini-portfolios that are professionally managed hold a globally diversified combination of equities, bonds, alternative class, and other straightforward strategies - i.e. balanced, moderate etc.
They should be reasonably and comparatively priced, as well as providing you with recent fact sheets, a prospectus and the terms and conditions to purchase or sell them. You must make it clear to the financial representative that you cannot tolerate much risk and that this fund cannot have exposure to all of the credit liabilities and leverage that have taken down so many well known names.
Quite a few of the financial institutions in Bermuda offer this type of investment fund for the small and tentative investment. The minimum amount for entry is usually manageable; consider adding to it in small increments over the next year.
Warren Buffet wrote a wonderful article in the New York Times, October 16, 2008. "Buy American. I am." His holding company, Berkshire Hathaway is legendary for outperforming the S&P 500 index for more than 30 years (see chart). A few more encouraging words from Mr. Buffet: "The financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
"So ... I've been buying American stocks. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation's many sound companies make no sense.
"These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, ten and 20 years from now." Even with these words of wisdom from the 'Oracle of Omaha' - his stock is down this year too along with the Harvard endowment - you won't see them selling out. There will be some of you who have been badly burned in this market, and will avoid investing again. If you have not lost significant amounts - that you cannot recoup - perhaps this is the time to re-evaluate how you allocated your resources, where you invested them, what type of advice you received, and then draft a new investment plan - that will better match your risk comfort factor.
Don't you think it's time to put one toe in the water? Only you can decide.
Moneywise with Martha Myron
When will market values bounce back? In the midst of the pain some (not all) are feeling every time that portfolio or pension statement arrives, is it time to think about adding to your investments? Not likely, is your reaction!
This author doesn't get it, you are thinking - since this week we've all been told that the US has been in a recession since December 2007. Isn't it nice to finally get the affirmation for something almost everyone knew was here?
Warren Buffet wrote a wonderful article in the New York Times, October 16, 2008. "Buy American. I am." It is a known fact that Bermudians by the droves get on planes this time of year to do just that, yet when it comes to watching the performance of the very companies that they have just shopped to exhaustion, we are unable to tolerate downturns of any kind.
It is also probably predictable right now that another whole raft of investors are putting in sell orders because they can no longer bear watching their assets depreciate further - even if only on paper. We have so many of us been through this before - remember?
Think of your coming holiday shopping days and that relentless drive in every other shopping expedition where we seek to find the best bargain ever - but we cannot bring ourselves to use the same logic with capital markets. It is an extraordinary phenomenon that has financial behaviour research scientists still shaking their heads.
Statistically and unfortunately, a large segment of investors large and small alike will continue to succumb every single time to the constant negativity streaming from financial publications and sell out - at the bottom. They have decided to take control, to put an end to the uncertainty, feeling that they even if the portfolio is managed by experienced time-trialed professional portfolio managers, this is the end of the tolerance line.
For some this will be the best decision they could make under the circumstances, if for instance, they've invested in a levered fund under redemption attack. And it is equally true that others may live to regret a permanent loss in value of a long-term well performing globally diversified index fund.
Now that I have earned your annoyance, why would I encourage this thinking? Investment markets can be driven as much by about perception as they are based on real facts. In the last couple of weeks, there has been a steady drumbeat of comments: "market bottoming, valuations cheapest in 40 years, we are on the turn, could be time to go back in, lots of cash sitting on the sidelines, mortgage refinancing going up in the US, first sign of a comeback and on." Is it time?
No one can say for certain, but why not start now by doing a bit of research locally and putting small amounts back in over time. There is no question that many good securities are very undervalued. And that ultimately the market will come back - here also is a good opportunity for you to read up on business and economic cycles by visiting a basic investing website such as www.smartmoney.com or www.thefool.co.uk. Smart money even offers the chance to run a mock portfolio.
Since you may be feeling somewhat uncertain, where should you start stepping back into the markets? A good asset allocated fund, otherwise known as a managed portfolio, with a slant toward the more conservative side is a good choice. These mini-portfolios that are professionally managed hold a globally diversified combination of equities, bonds, alternative class, and other straightforward strategies - i.e. balanced, moderate etc.
They should be reasonably and comparatively priced, as well as providing you with recent fact sheets, a prospectus and the terms and conditions to purchase or sell them. You must make it clear to the financial representative that you cannot tolerate much risk and that this fund cannot have exposure to all of the credit liabilities and leverage that have taken down so many well known names.
Quite a few of the financial institutions in Bermuda offer this type of investment fund for the small and tentative investment. The minimum amount for entry is usually manageable; consider adding to it in small increments over the next year.
Warren Buffet wrote a wonderful article in the New York Times, October 16, 2008. "Buy American. I am." His holding company, Berkshire Hathaway is legendary for outperforming the S&P 500 index for more than 30 years (see chart). A few more encouraging words from Mr. Buffet: "The financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
"So ... I've been buying American stocks. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation's many sound companies make no sense.
"These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, ten and 20 years from now." Even with these words of wisdom from the 'Oracle of Omaha' - his stock is down this year too along with the Harvard endowment - you won't see them selling out. There will be some of you who have been badly burned in this market, and will avoid investing again. If you have not lost significant amounts - that you cannot recoup - perhaps this is the time to re-evaluate how you allocated your resources, where you invested them, what type of advice you received, and then draft a new investment plan - that will better match your risk comfort factor.
Don't you think it's time to put one toe in the water? Only you can decide.
Why the Dollar is getting stronger
Why The Dollar Is Getting Stronger
By Stanley Reed
Strong demand for US debt, as well as general fear, are sending investors back to the greenback.
Investors have every reason to hate the US dollar. The rising deficit. The deteriorating economy. The plunging stock and bond markets. But rather than getting hammered by the financial crisis, the greenback is soaring. Since July the dollar is up 19 percent against the euro and 24 percent against the British pound.
As the financial crisis has intensified, worried investors have fled to the dollar.
Whether it's a boon or a burden depends on perspective. US companies with huge exports aren't thrilled, since a strong dollar hurts sales. On Nov. 24 Campbell Soup, which derives up to 30 percent of its revenues from outside the US, said currency exchange rates would cut earnings growth by five percentage points this fiscal year. Meanwhile, US consumers traveling to Paris will find their cash buys more than before.
What's behind the dollar's surprising strength? First, there's the fear factor. During tough economic times, investors often flee foreign currencies and other risky assets for safe havens like the U.S. dollar. The demand drives up the price relative to other currencies. In four of the past five recessions since the 1970s, the greenback finished the downturn higher than where it started.
The euro, the pound, and emerging-market currencies may also have been inflated after a six-year runup. A basket of foreign currencies, including the Brazilian real and the Chinese yuan, rose 25 percent between 2002 and mid-2008 vs. the dollar. The euro jumped 45 percent. But earlier this year some investors started betting the bubbles would burst, driving down the price of the currencies and conversely benefiting the dollar. "Since March, we were aggressively short the euro," says Colin Hart, director of currencies at Baring Asset Management.
US-based hedge funds and mutual funds that own international stocks have played a part as well. Both groups are getting hit with a wave of redemptions. Investors yanked $39 billion out of international stock funds run by US firms through the first nine months of the year, according to trade group Investment Company Institute. Without enough cash on hand to cover withdrawals, managers have had to dump foreign assets and buy US dollars to pay back investors. Those purchases boost the greenback.
The question now is whether the trend will continue. After its recent strong performance, the dollar is currently trading at about $1.28 to the euro, what some figure is a fair price based on the current buying power of consumers. "When the [market] stresses start to abate, people will be forced to think about whether they want to invest in the US," says Thomas Stolper, an economist at Goldman Sachs.
But if the global economy continues to sour, the dollar may rise even more. The credit storm is just beginning to hit emerging markets, many of which thrived on exports. With US consumption shrinking, the economic prospects of countries including India, Brazil, and Turkey look shaky. Such fears are hurting the local currencies. The once-strong Indian rupee has dropped 17 percent over the past two months.
The European currency markets may also feel the stress from a continued global slowdown. The euro zone lacks a strong central government that can adjust rapidly to crisis. For example, the European Central Bank has been criticized for not recognizing the severity of the crisis early enough: It raised interest rates in July before cutting them in October and November. Says Stephen Jen, an economist at Morgan Stanley: "The dollar's rise is genuine and more deserving than many skeptics have in mind."
By Stanley Reed
Strong demand for US debt, as well as general fear, are sending investors back to the greenback.
Investors have every reason to hate the US dollar. The rising deficit. The deteriorating economy. The plunging stock and bond markets. But rather than getting hammered by the financial crisis, the greenback is soaring. Since July the dollar is up 19 percent against the euro and 24 percent against the British pound.
As the financial crisis has intensified, worried investors have fled to the dollar.
Whether it's a boon or a burden depends on perspective. US companies with huge exports aren't thrilled, since a strong dollar hurts sales. On Nov. 24 Campbell Soup, which derives up to 30 percent of its revenues from outside the US, said currency exchange rates would cut earnings growth by five percentage points this fiscal year. Meanwhile, US consumers traveling to Paris will find their cash buys more than before.
What's behind the dollar's surprising strength? First, there's the fear factor. During tough economic times, investors often flee foreign currencies and other risky assets for safe havens like the U.S. dollar. The demand drives up the price relative to other currencies. In four of the past five recessions since the 1970s, the greenback finished the downturn higher than where it started.
The euro, the pound, and emerging-market currencies may also have been inflated after a six-year runup. A basket of foreign currencies, including the Brazilian real and the Chinese yuan, rose 25 percent between 2002 and mid-2008 vs. the dollar. The euro jumped 45 percent. But earlier this year some investors started betting the bubbles would burst, driving down the price of the currencies and conversely benefiting the dollar. "Since March, we were aggressively short the euro," says Colin Hart, director of currencies at Baring Asset Management.
US-based hedge funds and mutual funds that own international stocks have played a part as well. Both groups are getting hit with a wave of redemptions. Investors yanked $39 billion out of international stock funds run by US firms through the first nine months of the year, according to trade group Investment Company Institute. Without enough cash on hand to cover withdrawals, managers have had to dump foreign assets and buy US dollars to pay back investors. Those purchases boost the greenback.
The question now is whether the trend will continue. After its recent strong performance, the dollar is currently trading at about $1.28 to the euro, what some figure is a fair price based on the current buying power of consumers. "When the [market] stresses start to abate, people will be forced to think about whether they want to invest in the US," says Thomas Stolper, an economist at Goldman Sachs.
But if the global economy continues to sour, the dollar may rise even more. The credit storm is just beginning to hit emerging markets, many of which thrived on exports. With US consumption shrinking, the economic prospects of countries including India, Brazil, and Turkey look shaky. Such fears are hurting the local currencies. The once-strong Indian rupee has dropped 17 percent over the past two months.
The European currency markets may also feel the stress from a continued global slowdown. The euro zone lacks a strong central government that can adjust rapidly to crisis. For example, the European Central Bank has been criticized for not recognizing the severity of the crisis early enough: It raised interest rates in July before cutting them in October and November. Says Stephen Jen, an economist at Morgan Stanley: "The dollar's rise is genuine and more deserving than many skeptics have in mind."
Daytona Beach Real Estate
Footsteps of the Past, Paths to the Future
Enjoy a central location in Daytona Beach Shores, convenient to major centers of commerce, yet retains a strong historical tradition with fascinating remnants of Florida's colorful past just minutes away. The sweep of Florida's history stirs and surprises. The characters are countless and fascinating, from seven-foot native Timucuan Indians to Spanish conquistadors and Elizabethan pirates; from British and Spanish "owners" of Florida to raiding U.S. troops and brave, resistant Seminoles; from Africans who slaved on plantations to those who fought in the Civil War; from rum runners to top-hatted tourists to tycoons obsessed with cars and trains.
Just a sample of nearby historical sites include Tomoka Mounds and Middens, one of the earliest Native American settlements on the Central East Coast; the Bulow Plantation Ruins State Historical Site, founded in 1821; Dummett Sugar Mill, Florida's first steam-powered sugar mill; Sugar Mill Botanical Gardens, which include ruins of an English sugar mill, botanical gardens and statuary; Old Fort Park, with 40 archaeological digs at the site of the ill-fated Turnbull Colony of Minorcans; and Ponce de Leon Inlet Lighthouse, built more than a century ago.
Other noteworthy sites include the Casements, former winter home of John D. Rockefeller; Halifax Historical Museum; Freemanville Historic Site; Mary McLeod Bethune home and gravesite; Howard Thurman Home; the Rosewood Exhibit at Bethune-Cookman College, and much more.
Let the Adventures Begin
If active outdoor living is your idea of paradise, you've come to the right place. First and foremost, of course, is "The World's Most Famous Beach," its sand and blue waters only steps from your home. The county's 47 miles of beaches - some 500 feet at ebb tide - are perfect for basking, beachcombing, and a myriad of lively sports.
Fabulous Fishing
Located in the heart of "The Redfish Capital of the World," Daytona Beach Shores offers some of the most exciting salt and freshwater fishing anywhere. Anglers at Mosquito Lagoon regularly land monsters exceeding 40 pounds or more - and pound for pound, redfish are among the hardest fighting fish in the world.
In addition to redfish, area anglers reel in marlin, sailfish, wahoo, tuna, king mackerel, grouper, red snapper, amberjack and many other magnificent fish. Charter services are plentiful and crews are expert at helping you land the "big one." Surf fishing is also a year-round activity, and species such as pompano, whiting, bluefish, flounder and more thrive in the area. You may even want to try your cast in the annual Greater Daytona Beach Striking Fish Tournament held each May.
Freshwater fishing is superb, with excellent bass fishing on the legendary St. Johns River. Whether veteran or beginner, you'll enjoy sight fishing, fly fishing, live bait, lure fishing and more.
Water Sports and Outdoor Recreation
Why should the fish have the water to themselves? Get in the swim with snorkeling, scuba, surfing, or simply a leisurely lap in the pool. A variety of dive shops with complete equipment can be found. And if boating is your favorite pastime, you'll find all varieties - from sailing, kayaking, canoeing and jetskiing to parasailing.
The area abounds with springs, lakes, rivers and wonderfully diverse state parks and campgrounds. The St. Johns River is one of the most mystically scenic rivers in America, and one of only three that flow south to north. It links magnificent parks with wildlife preserves along the county's western border. DeLeon Springs State Recreation Area offers 600 acres of varied activities: boating, fishing, hiking, picnicking and swimming in the 72-degree spring.
Ecotourists flock to the region, and not only for the flocks of sea and song birds (200 species in all). A river cruise will reveal an exotic realm of indigenous flora and fauna. Resident alligators sun on the banks, and manatees are gentle winter visitors.
Golf, Tennis and More
Back on dry land, the area's 20+ championship golf courses will help you hone your game. Designed by some of the game's greats like Rees Jones, Arthur Hills, Arnold Palmer, Gary Player, Lloyd Clifton and Bill Amick, these beautiful courses are guaranteed to challenge your personal best. The area is also home to the Ladies Professional Golf Association and the LPGA International Golf Course, which hosts national tournaments.
Whether you're a tennis player or tennis spectator, you're in good shape here. Year-round mild weather allows outdoors play, or you can watch world-class amateur tennis. This is the backyard of USA Tennis Florida, which hosts several topnotch tournaments each year.
You can also cheer for fast-paced college basketball and get a jump on the baseball season with spring training at Jackie Robinson Stadium. At its entrance is a life-sized statue of the history-making player.
Family Entertainment (Zoom Zoom!)
All ages will enjoy family-friendly attractions like the Museum of Arts and Sciences Planetarium, the Marine Science Center, Daytona Beach Boardwalk, Daytona Ghost Walk, themed miniature golf courses, even guided tours of Angell & Phelps Chocolate Factory, Daytona Beach's tradition of fine candy-making since 1925.
Feel the need for speed? Daytona Beach Shores was the site of the Measured Mile, where Sir Malcolm Campbell pushed his legendary Bluebird to 276 mph. Visit the racing walk of fame at Max Samuely Park and learn more about the birthplace of speed and its constantly broken records.
Take a lap over to the famous Daytona International Speedway and Daytona USA, the popular interactive motorsports attraction that features simulator rides, a movie, tours of the Speedway, the Bluebird V and more. The Speedway is home to the Daytona 500 but also to racing as diverse as you'll find anywhere: 190 mph NASCAR stock cars, 125 mph go-karts and thrilling 170 mph Superbikes.
Art and Culture
The Daytona Beach area abounds in cultural opportunities that may surprise first-time visitors. The London Symphony presents an annual season, a symbol of the region's love of music and its many excellent venues for the performing arts, including theatre: the Daytona Playhouse, Seaside Music Theatre, Peabody Auditorium, Ormond Beach Performing Arts Center, Ocean Center, Mary McLeod Bethune Foundation and Performing Arts Center, Daytona Beach Bandshell Concert Series, the Daytona Beach Symphony Society and the coming state-of-the-art News Journal Center.
The visual arts are equally well represented by the renowned Atlantic Center for the Arts, Southeast Museum of Photography, Ormond Memorial Art Museum and Gardens, African American and Caribbean American Museum of Art, Art League of Daytona Beach, and the Fred Dana Marsh Museum.
Dining, Shopping and Nightlife
Indulge your taste for the good life with a luscious meal and ocean view.
With an obvious taste for the good life, you surely appreciate the culinary arts - and you'll have no trouble indulging in a luscious meal (with complimentary ocean view). Freshly caught seafood is naturally superb, but don't overlook ethnic specialties, sizzling steaks or the All-American beachside cheeseburger. Popular restaurants include Inlet Harbor Marina Restaurant, Boondocks, Outback Steakhouse, Gators Pizza and more. Not to be missed is Teauila's Hawaii, the exotic dinner theatre that features authentic Polynesian dancers and a spectacular stage show. Teauila's even boasts an active indoor "volcano."
Take a stroll down Main Street Pier where you'll find dining, a gondola skyride, revolving space needle and more. If games of chance appeal to you, try your luck at the SunCruz Casino, a 560-passenger Las Vegas-style gaming ship that offers five-hour day and evening cruises.
All that glitters and more can be found at exciting area shopping venues.
All that glitters, shimmers and feels good can be found at exciting area shopping venues. One unique shopping experience is the Ocean Walk Shoppes at the Village. A four-level shopping, dining and entertainment complex, it offers an ocean view, a 10-screen movie theater, a pedestrian walk-over and some of the best retail stores anywhere.
Enjoy a central location in Daytona Beach Shores, convenient to major centers of commerce, yet retains a strong historical tradition with fascinating remnants of Florida's colorful past just minutes away. The sweep of Florida's history stirs and surprises. The characters are countless and fascinating, from seven-foot native Timucuan Indians to Spanish conquistadors and Elizabethan pirates; from British and Spanish "owners" of Florida to raiding U.S. troops and brave, resistant Seminoles; from Africans who slaved on plantations to those who fought in the Civil War; from rum runners to top-hatted tourists to tycoons obsessed with cars and trains.
Just a sample of nearby historical sites include Tomoka Mounds and Middens, one of the earliest Native American settlements on the Central East Coast; the Bulow Plantation Ruins State Historical Site, founded in 1821; Dummett Sugar Mill, Florida's first steam-powered sugar mill; Sugar Mill Botanical Gardens, which include ruins of an English sugar mill, botanical gardens and statuary; Old Fort Park, with 40 archaeological digs at the site of the ill-fated Turnbull Colony of Minorcans; and Ponce de Leon Inlet Lighthouse, built more than a century ago.
Other noteworthy sites include the Casements, former winter home of John D. Rockefeller; Halifax Historical Museum; Freemanville Historic Site; Mary McLeod Bethune home and gravesite; Howard Thurman Home; the Rosewood Exhibit at Bethune-Cookman College, and much more.
Let the Adventures Begin
If active outdoor living is your idea of paradise, you've come to the right place. First and foremost, of course, is "The World's Most Famous Beach," its sand and blue waters only steps from your home. The county's 47 miles of beaches - some 500 feet at ebb tide - are perfect for basking, beachcombing, and a myriad of lively sports.
Fabulous Fishing
Located in the heart of "The Redfish Capital of the World," Daytona Beach Shores offers some of the most exciting salt and freshwater fishing anywhere. Anglers at Mosquito Lagoon regularly land monsters exceeding 40 pounds or more - and pound for pound, redfish are among the hardest fighting fish in the world.
In addition to redfish, area anglers reel in marlin, sailfish, wahoo, tuna, king mackerel, grouper, red snapper, amberjack and many other magnificent fish. Charter services are plentiful and crews are expert at helping you land the "big one." Surf fishing is also a year-round activity, and species such as pompano, whiting, bluefish, flounder and more thrive in the area. You may even want to try your cast in the annual Greater Daytona Beach Striking Fish Tournament held each May.
Freshwater fishing is superb, with excellent bass fishing on the legendary St. Johns River. Whether veteran or beginner, you'll enjoy sight fishing, fly fishing, live bait, lure fishing and more.
Water Sports and Outdoor Recreation
Why should the fish have the water to themselves? Get in the swim with snorkeling, scuba, surfing, or simply a leisurely lap in the pool. A variety of dive shops with complete equipment can be found. And if boating is your favorite pastime, you'll find all varieties - from sailing, kayaking, canoeing and jetskiing to parasailing.
The area abounds with springs, lakes, rivers and wonderfully diverse state parks and campgrounds. The St. Johns River is one of the most mystically scenic rivers in America, and one of only three that flow south to north. It links magnificent parks with wildlife preserves along the county's western border. DeLeon Springs State Recreation Area offers 600 acres of varied activities: boating, fishing, hiking, picnicking and swimming in the 72-degree spring.
Ecotourists flock to the region, and not only for the flocks of sea and song birds (200 species in all). A river cruise will reveal an exotic realm of indigenous flora and fauna. Resident alligators sun on the banks, and manatees are gentle winter visitors.
Golf, Tennis and More
Back on dry land, the area's 20+ championship golf courses will help you hone your game. Designed by some of the game's greats like Rees Jones, Arthur Hills, Arnold Palmer, Gary Player, Lloyd Clifton and Bill Amick, these beautiful courses are guaranteed to challenge your personal best. The area is also home to the Ladies Professional Golf Association and the LPGA International Golf Course, which hosts national tournaments.
Whether you're a tennis player or tennis spectator, you're in good shape here. Year-round mild weather allows outdoors play, or you can watch world-class amateur tennis. This is the backyard of USA Tennis Florida, which hosts several topnotch tournaments each year.
You can also cheer for fast-paced college basketball and get a jump on the baseball season with spring training at Jackie Robinson Stadium. At its entrance is a life-sized statue of the history-making player.
Family Entertainment (Zoom Zoom!)
All ages will enjoy family-friendly attractions like the Museum of Arts and Sciences Planetarium, the Marine Science Center, Daytona Beach Boardwalk, Daytona Ghost Walk, themed miniature golf courses, even guided tours of Angell & Phelps Chocolate Factory, Daytona Beach's tradition of fine candy-making since 1925.
Feel the need for speed? Daytona Beach Shores was the site of the Measured Mile, where Sir Malcolm Campbell pushed his legendary Bluebird to 276 mph. Visit the racing walk of fame at Max Samuely Park and learn more about the birthplace of speed and its constantly broken records.
Take a lap over to the famous Daytona International Speedway and Daytona USA, the popular interactive motorsports attraction that features simulator rides, a movie, tours of the Speedway, the Bluebird V and more. The Speedway is home to the Daytona 500 but also to racing as diverse as you'll find anywhere: 190 mph NASCAR stock cars, 125 mph go-karts and thrilling 170 mph Superbikes.
Art and Culture
The Daytona Beach area abounds in cultural opportunities that may surprise first-time visitors. The London Symphony presents an annual season, a symbol of the region's love of music and its many excellent venues for the performing arts, including theatre: the Daytona Playhouse, Seaside Music Theatre, Peabody Auditorium, Ormond Beach Performing Arts Center, Ocean Center, Mary McLeod Bethune Foundation and Performing Arts Center, Daytona Beach Bandshell Concert Series, the Daytona Beach Symphony Society and the coming state-of-the-art News Journal Center.
The visual arts are equally well represented by the renowned Atlantic Center for the Arts, Southeast Museum of Photography, Ormond Memorial Art Museum and Gardens, African American and Caribbean American Museum of Art, Art League of Daytona Beach, and the Fred Dana Marsh Museum.
Dining, Shopping and Nightlife
Indulge your taste for the good life with a luscious meal and ocean view.
With an obvious taste for the good life, you surely appreciate the culinary arts - and you'll have no trouble indulging in a luscious meal (with complimentary ocean view). Freshly caught seafood is naturally superb, but don't overlook ethnic specialties, sizzling steaks or the All-American beachside cheeseburger. Popular restaurants include Inlet Harbor Marina Restaurant, Boondocks, Outback Steakhouse, Gators Pizza and more. Not to be missed is Teauila's Hawaii, the exotic dinner theatre that features authentic Polynesian dancers and a spectacular stage show. Teauila's even boasts an active indoor "volcano."
Take a stroll down Main Street Pier where you'll find dining, a gondola skyride, revolving space needle and more. If games of chance appeal to you, try your luck at the SunCruz Casino, a 560-passenger Las Vegas-style gaming ship that offers five-hour day and evening cruises.
All that glitters and more can be found at exciting area shopping venues.
All that glitters, shimmers and feels good can be found at exciting area shopping venues. One unique shopping experience is the Ocean Walk Shoppes at the Village. A four-level shopping, dining and entertainment complex, it offers an ocean view, a 10-screen movie theater, a pedestrian walk-over and some of the best retail stores anywhere.
2008 Top Florida Real Estate Stories
2008 top Florida real estate stories
The top story for 2008? Two words: The economy.
Many of this year’s top stories are connected to the worldwide economic woes. While the current downturn is, to some extent, a correction of the overly-robust market boom, all weak markets have an inherent sensitivity to additional bad news, and federal officials must now tread carefully as they guide a return to stability.
EarlyBird editors chose the following as Florida real estate’s top stories in 2008:
Whoa – slow down there, buddy
Home sales turnaround while prices continue to drop.
As 2008 draws to a close, Florida home sales read like a good news-bad news lineup. The good news: In recent months, the number of home sales each month continued to rise, and has done so long enough to make the rebound appear to have legs. It’s not a return to even a balanced market yet, but the first step will be a pickup in home sales and a decrease in the available inventory of homes. Single family home sales rose 5 percent in third quarter 2008 compared to the same quarter in 2007.
The bad news: Home prices continue to decline. While expected – prices remained strong for over a year when sales first stalled – the market needs to find a bottom before it can turn around. As sales pick up, price drops should slow, and some experts predict that will happen in 2009, perhaps by summer. In third quarter 2008, the median price was down 20 percent compared to one year earlier.
Paying pennies on the dollar
Foreclosures and short sales on the rise.
In 2005, foreclosures and short sales were rare. In 2008, they defined the market’s low end.
In the third quarter of 2008, Florida was No. 1 in foreclosures, with an American Bankers Association report finding 90,000 homes slipping into foreclosure. The same ABA report finds that foreclosures in Florida stood at 7.32 percent at the end of September, while Nevada’s rate of 5.58 came in second. During the foreclosure process, many of these homes become a supply line for short sales since banks can save the cost of a foreclosure by cutting a deal now; but many also become hard to sell as yards overgrow and interiors decay, with neither owners, banks or local governments taking responsibility for upkeep. For Realtors, a foreclosure makes it tougher to market and sell a nearby listing. For homeowners, foreclosures drag down nearby property values. For local governments, foreclosures present a maintenance problem and drain on the property tax base.
Short sales are one solution for troubled homeowners. Short sales, however, created other unique problems in 2008. The first problem involved time between offer and reply, and anxious homebuyers sometimes waited months for a response – and many times, that bank’s response was “no.” The problem may have existed before last year, but no one noticed because so few homes sold by way of a short sale. In 2008, a virtual short-sale industry came into existence. Questions were raised about MLS wording, and about seller representation as governments and real estate associations worked out the details.
Going into 2009, expect more of the same, at least early on. As long as Americans owe more on their mortgage than their equity in the house, short sales and foreclosures will be a part of the real estate world.
Loosen the purse strings
Credit gets tighter.
During the real estate boom times, lenders threw mortgage money at prospective homebuyers with a range of terms to keep borrowers’ costs down – no downpayment, or no principal payment, or skip a month if you wish, or some combination of those terms with a teaser rate for the first few months.
In 2008, however, homebuyers with great credit and 20 percent down found it challenging to get any kind of mortgage.
In a chicken-or-the-egg paradox, lenders tightened credit as the real estate market melted down, fearful that home values would drop further, and their collateral – the home – would eventually be worth less than the money lent. Fearful of yet another short sale or foreclosure, banks stopped lending. But tightened lending isn’t just a result of the real estate slowdown; it’s also a cause. As the market finds its footing, many reasonably-qualified buyers now find that they cannot get a loan.
Heading into 2009, there’s a glimpse of hope on the horizon. The federal bailout package aims to loosen the credit markets and make it easier to buy a home, and many experts expect that to happen. The FHA also introduced programs and boosted its guarantees, freeing up even more money, especially for first-time homebuyers. By the end of 2008, FHA loans became the mortgage of last resort for many homeowners.
Protecting our Fannie (and Freddie)
Fannie Mae and Freddie Mac need federal bailout.
American homeownership took off when banks gained the ability to sell mortgages and use the cash to loan more money to prospective buyers. While a local bank branch worked directly with a homebuyer, Fannie Mae and Freddie Mac worked behind the scenes to buy mortgage loans and sell them to investors. Officially called government-sponsored enterprises (GSEs), the two firms hold over the half the mortgages in the U.S., and investors deemed them too big to fail.
“Too big to fail” was put to the test in 2008, and the federal government bailed out Fannie and Freddie. It’s unclear what the ownership status of the GSEs will be once the dust settles, however – quasi-governmental, governmental, or highly-regulated private companies. The answer should reveal itself sometime in 2009.
You can take it with you
Florida homeowners get property tax portability and more
Looking for good news relating to 2008? Read on.
On Jan. 29, 2008, Floridians approved Amendment 1, providing needed property tax reform. In approving Amendment 1, state homesteaded owners increased their property tax exemption and gained the power to port existing property tax savings from Florida’s Save Our Homes amendment to a new home. Businesses gained a yearly 10 percent tax assessment cap effective in 2009, and a $25,000 exemption for tangible personal property.
While additional property tax savings never made it before voters after the Florida Supreme Court tossed out Amendment 5, the victory of Amendment 1 remains intact. In the shadow of a slower housing market, the small wins can be forgotten, but the passage of Amendment 1 represents a victory for Florida homeowners and business generally, and to members of the Florida Association of Realtors specifically.
An every-20-year event
The Florida Budget and Tax Reform Commission meets.
An imperfect process of budgeting, taxing and spending can create problems. Over time, those problems can get worse. To combat that, Florida created the Budget and Tax Reform Commission, which meets once every 20 years, and has great power to put proposed constitutional amendments directly before voters via the ballot box. The group met in 2008; they meet next in 2028.
Past-FAR President Nancy Riley served on the Commission, and it generated a number of amendment proposals that benefit the state’s real estate market. Amendment 3, which passed, allows Floridians to upgrade their property against hurricanes without paying a higher property tax; Amendment 4, which passed, creates a property tax exemption for conservation land; and Amendment 6, which passed, allows marinas and other waterfront businesses to be taxed at current use standards rather than highest and best use.
The Commission also approved Amendment 5, which would have significantly impacted property tax rates in the state and added to benefits from January’s Amendment 1, but the Florida Supreme Court removed the proposal from the ballot before voters had a chance to weigh in on the issue.
This is a stick up
Mortgage fraud runs rampant.
In the second quarter of 2008 (most recent data available), mortgage fraud grew by 45 percent nationwide. Florida led the way with one out of five cases located within the Sunshine State; and Miami and Tampa landed the top two spots nationwide.
Most reported fraud came directly from homebuyers who, in earlier years, overstated incomes, beefed up bank accounts, and, essentially, lied to secure a mortgage. Other culprits included some mortgage brokers who “did what it takes” to get a client mortgage money, even if that means tinkering with (lying about) the client’s financial history. And some fraud is committed for old-fashioned reasons of greed.
However, a few pundits argue that fraud hasn’t increased – just the number of times people get caught. With falling real estate values, lenders are closely scrutinizing applications and mortgage brokers more closely.
The Florida Legislature also did its part to correct problems, enacting a law (effective Oct. 1, 2008) to strengthen enforcement efforts. In Florida, law enforcement has greater powers to combat fraud; borrowers must be told, in writing, how much a lender pays a mortgage broker; Good Faith Estimates must disclose all possible fees from every party; and if loan terms change, the borrower must be notified no later than three business days before closing.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
The top story for 2008? Two words: The economy.
Many of this year’s top stories are connected to the worldwide economic woes. While the current downturn is, to some extent, a correction of the overly-robust market boom, all weak markets have an inherent sensitivity to additional bad news, and federal officials must now tread carefully as they guide a return to stability.
EarlyBird editors chose the following as Florida real estate’s top stories in 2008:
Whoa – slow down there, buddy
Home sales turnaround while prices continue to drop.
As 2008 draws to a close, Florida home sales read like a good news-bad news lineup. The good news: In recent months, the number of home sales each month continued to rise, and has done so long enough to make the rebound appear to have legs. It’s not a return to even a balanced market yet, but the first step will be a pickup in home sales and a decrease in the available inventory of homes. Single family home sales rose 5 percent in third quarter 2008 compared to the same quarter in 2007.
The bad news: Home prices continue to decline. While expected – prices remained strong for over a year when sales first stalled – the market needs to find a bottom before it can turn around. As sales pick up, price drops should slow, and some experts predict that will happen in 2009, perhaps by summer. In third quarter 2008, the median price was down 20 percent compared to one year earlier.
Paying pennies on the dollar
Foreclosures and short sales on the rise.
In 2005, foreclosures and short sales were rare. In 2008, they defined the market’s low end.
In the third quarter of 2008, Florida was No. 1 in foreclosures, with an American Bankers Association report finding 90,000 homes slipping into foreclosure. The same ABA report finds that foreclosures in Florida stood at 7.32 percent at the end of September, while Nevada’s rate of 5.58 came in second. During the foreclosure process, many of these homes become a supply line for short sales since banks can save the cost of a foreclosure by cutting a deal now; but many also become hard to sell as yards overgrow and interiors decay, with neither owners, banks or local governments taking responsibility for upkeep. For Realtors, a foreclosure makes it tougher to market and sell a nearby listing. For homeowners, foreclosures drag down nearby property values. For local governments, foreclosures present a maintenance problem and drain on the property tax base.
Short sales are one solution for troubled homeowners. Short sales, however, created other unique problems in 2008. The first problem involved time between offer and reply, and anxious homebuyers sometimes waited months for a response – and many times, that bank’s response was “no.” The problem may have existed before last year, but no one noticed because so few homes sold by way of a short sale. In 2008, a virtual short-sale industry came into existence. Questions were raised about MLS wording, and about seller representation as governments and real estate associations worked out the details.
Going into 2009, expect more of the same, at least early on. As long as Americans owe more on their mortgage than their equity in the house, short sales and foreclosures will be a part of the real estate world.
Loosen the purse strings
Credit gets tighter.
During the real estate boom times, lenders threw mortgage money at prospective homebuyers with a range of terms to keep borrowers’ costs down – no downpayment, or no principal payment, or skip a month if you wish, or some combination of those terms with a teaser rate for the first few months.
In 2008, however, homebuyers with great credit and 20 percent down found it challenging to get any kind of mortgage.
In a chicken-or-the-egg paradox, lenders tightened credit as the real estate market melted down, fearful that home values would drop further, and their collateral – the home – would eventually be worth less than the money lent. Fearful of yet another short sale or foreclosure, banks stopped lending. But tightened lending isn’t just a result of the real estate slowdown; it’s also a cause. As the market finds its footing, many reasonably-qualified buyers now find that they cannot get a loan.
Heading into 2009, there’s a glimpse of hope on the horizon. The federal bailout package aims to loosen the credit markets and make it easier to buy a home, and many experts expect that to happen. The FHA also introduced programs and boosted its guarantees, freeing up even more money, especially for first-time homebuyers. By the end of 2008, FHA loans became the mortgage of last resort for many homeowners.
Protecting our Fannie (and Freddie)
Fannie Mae and Freddie Mac need federal bailout.
American homeownership took off when banks gained the ability to sell mortgages and use the cash to loan more money to prospective buyers. While a local bank branch worked directly with a homebuyer, Fannie Mae and Freddie Mac worked behind the scenes to buy mortgage loans and sell them to investors. Officially called government-sponsored enterprises (GSEs), the two firms hold over the half the mortgages in the U.S., and investors deemed them too big to fail.
“Too big to fail” was put to the test in 2008, and the federal government bailed out Fannie and Freddie. It’s unclear what the ownership status of the GSEs will be once the dust settles, however – quasi-governmental, governmental, or highly-regulated private companies. The answer should reveal itself sometime in 2009.
You can take it with you
Florida homeowners get property tax portability and more
Looking for good news relating to 2008? Read on.
On Jan. 29, 2008, Floridians approved Amendment 1, providing needed property tax reform. In approving Amendment 1, state homesteaded owners increased their property tax exemption and gained the power to port existing property tax savings from Florida’s Save Our Homes amendment to a new home. Businesses gained a yearly 10 percent tax assessment cap effective in 2009, and a $25,000 exemption for tangible personal property.
While additional property tax savings never made it before voters after the Florida Supreme Court tossed out Amendment 5, the victory of Amendment 1 remains intact. In the shadow of a slower housing market, the small wins can be forgotten, but the passage of Amendment 1 represents a victory for Florida homeowners and business generally, and to members of the Florida Association of Realtors specifically.
An every-20-year event
The Florida Budget and Tax Reform Commission meets.
An imperfect process of budgeting, taxing and spending can create problems. Over time, those problems can get worse. To combat that, Florida created the Budget and Tax Reform Commission, which meets once every 20 years, and has great power to put proposed constitutional amendments directly before voters via the ballot box. The group met in 2008; they meet next in 2028.
Past-FAR President Nancy Riley served on the Commission, and it generated a number of amendment proposals that benefit the state’s real estate market. Amendment 3, which passed, allows Floridians to upgrade their property against hurricanes without paying a higher property tax; Amendment 4, which passed, creates a property tax exemption for conservation land; and Amendment 6, which passed, allows marinas and other waterfront businesses to be taxed at current use standards rather than highest and best use.
The Commission also approved Amendment 5, which would have significantly impacted property tax rates in the state and added to benefits from January’s Amendment 1, but the Florida Supreme Court removed the proposal from the ballot before voters had a chance to weigh in on the issue.
This is a stick up
Mortgage fraud runs rampant.
In the second quarter of 2008 (most recent data available), mortgage fraud grew by 45 percent nationwide. Florida led the way with one out of five cases located within the Sunshine State; and Miami and Tampa landed the top two spots nationwide.
Most reported fraud came directly from homebuyers who, in earlier years, overstated incomes, beefed up bank accounts, and, essentially, lied to secure a mortgage. Other culprits included some mortgage brokers who “did what it takes” to get a client mortgage money, even if that means tinkering with (lying about) the client’s financial history. And some fraud is committed for old-fashioned reasons of greed.
However, a few pundits argue that fraud hasn’t increased – just the number of times people get caught. With falling real estate values, lenders are closely scrutinizing applications and mortgage brokers more closely.
The Florida Legislature also did its part to correct problems, enacting a law (effective Oct. 1, 2008) to strengthen enforcement efforts. In Florida, law enforcement has greater powers to combat fraud; borrowers must be told, in writing, how much a lender pays a mortgage broker; Good Faith Estimates must disclose all possible fees from every party; and if loan terms change, the borrower must be notified no later than three business days before closing.
© 2008 FLORIDA ASSOCIATION OF REALTORS®
Mid-Winter Checklist
Mid Winter Checklist
In the darkest part of the year, it´s tempting to try hibernating through the next couple months. If you can get a plan in place now though, you can get a jump on spring. The following home maintenance checklist provides a "to do" list for January, a list of seasonal sales, and a small kit to organize those items that you always seem to have to rummage for when decorating for Christmas next year.
After the work and mania that accompanies the holiday season, January provides an opportunity to regroup and reorganize.
• Do end of the year accounting. Set up file folder for current year´s taxes. Organize receipts and paperwork.
• Take down, clean, and store ornaments, decorations, and exterior lights. Recycle or store tree.
• Declutter Christmas stuff. Give away or toss old, broken, or unused ornaments, decorations, lights, and those very sad ribbons.
• Declutter a closet. Pick just one. Empty it. Sort by things to save, donate or sell, toss. Take the garbage out and set donations aside the same day. Clean the closet thoroughly. Of the stuff to save, put everthing that belongs somewhere else where it belongs. Organize the stuff that belongs in that closet and put it back. Pat yourself on the back and go have some fun. (If you have lots to declutter, pace yourself otherwise you´ll never be able to finish. Some experts suggest making decluttering appointments with yourself and making it a priority.)
• Replace drawer liners and shelf papers.
• Wander the house with a screwdriver and make a list of minor household repairs that can be done in a weekend. Tighten screws on drawers, doors, and furniture. Make a list of broken electrical face plates, missing pulls or knobs, locks that need lubrication, and spots that need caulking around sinks and tubs. Go to the home improvement store and buy everything you need to make all of your little repairs at once.
• Call the utility company to do an energy audit. By now you´ll have recieved your first big winter heating bill, and unless you live in Phoenix, you may be motivated to see how you can improve your home´s energy efficiency. While you´re at it, ask the utility if they can also test for radon gas—especially important if you don´t know if it´s ever been done.
• Plan annuals if you intend to start plants from seed. Start shopping for seeds and seed starting mix at the end of January. Use 1/2 gallon milk or orange juice containers cut down their length and stapled at the ends for starting trays.
In the darkest part of the year, it´s tempting to try hibernating through the next couple months. If you can get a plan in place now though, you can get a jump on spring. The following home maintenance checklist provides a "to do" list for January, a list of seasonal sales, and a small kit to organize those items that you always seem to have to rummage for when decorating for Christmas next year.
After the work and mania that accompanies the holiday season, January provides an opportunity to regroup and reorganize.
• Do end of the year accounting. Set up file folder for current year´s taxes. Organize receipts and paperwork.
• Take down, clean, and store ornaments, decorations, and exterior lights. Recycle or store tree.
• Declutter Christmas stuff. Give away or toss old, broken, or unused ornaments, decorations, lights, and those very sad ribbons.
• Declutter a closet. Pick just one. Empty it. Sort by things to save, donate or sell, toss. Take the garbage out and set donations aside the same day. Clean the closet thoroughly. Of the stuff to save, put everthing that belongs somewhere else where it belongs. Organize the stuff that belongs in that closet and put it back. Pat yourself on the back and go have some fun. (If you have lots to declutter, pace yourself otherwise you´ll never be able to finish. Some experts suggest making decluttering appointments with yourself and making it a priority.)
• Replace drawer liners and shelf papers.
• Wander the house with a screwdriver and make a list of minor household repairs that can be done in a weekend. Tighten screws on drawers, doors, and furniture. Make a list of broken electrical face plates, missing pulls or knobs, locks that need lubrication, and spots that need caulking around sinks and tubs. Go to the home improvement store and buy everything you need to make all of your little repairs at once.
• Call the utility company to do an energy audit. By now you´ll have recieved your first big winter heating bill, and unless you live in Phoenix, you may be motivated to see how you can improve your home´s energy efficiency. While you´re at it, ask the utility if they can also test for radon gas—especially important if you don´t know if it´s ever been done.
• Plan annuals if you intend to start plants from seed. Start shopping for seeds and seed starting mix at the end of January. Use 1/2 gallon milk or orange juice containers cut down their length and stapled at the ends for starting trays.
Peel a Banana...
Peel a banana from the bottom and you won't have to
pick the little 'stringy things' off of it. That's how the primates do it.
Take your bananas apart when you get home from the store.
If you leave them connected at the stem, they ripen faster.
Store your opened chunks of cheese in aluminum foil.
It will stay fresh much longer and not mold!
Peppers with 3 bumps on the bottom are sweeter and better for eating.
Peppers with 4 bumps on the bottom are firmer and better for cooking.
Add a teaspoon of water when frying ground beef.
It will help pull the grease away from the meat while cooking.
To really make scrambled eggs or omelets rich add a couple of
spoonfuls of sour cream, cream cheese, or heavy cream in and then beat them up.
For a cool brownie treat, make brownies as directed. Melt Andes mints
in double broiler and pour over warm brownies. Let set for a wonderful minty frosting.
Add garlic immediately to a recipe if you want a light taste
of garlic and at the end of the recipe if your want a stronger taste of garlic.
Leftover snickers bars from Halloween make a delicious dessert. Simply
chop them up with the food chopper. Peel, core and slice a few apples. Place them
in a baking dish and sprinkle the chopped candy bars over the apples. Bake at 350
for 15 minutes!!! Serve alone or with vanilla ice cream. Yummm!
Reheat Pizza
Heat up leftover pizza in a nonstick skillet on top of the stove, set heat to med-low
and heat till warm. This keeps the crust crispy. No soggy micro pizza. I saw this on
the cooking channel and it really works.
Easy Deviled Eggs
Put cooked egg yolks in a zip lock bag. Seal, mash till they are all broken up. Add remainder of ingredients,
reseal, keep mashing it up mixing thoroughly, cut the tip of the baggy, squeeze mixture into egg.
Just throw bag away when done easy clean up.
Expanding Frosting
When you buy a container of cake frosting from the store, whip it with your mixer
for a few minutes. You can double it in size. You get to frost more cake/cupcakes
with the same amount. You also eat less sugar and calories per serving.
Reheating refrigerated bread
To warm biscuits, pancakes, or muffins that were refrigerated, place them in
a microwave with a cup of water. The increased moisture will keep the food
moist and help it reheat faster.
Newspaper weeds away
Start putting in your plants, work the nutrients in your soil. Wet newspapers,
put layers around the plants overlapping as you go cover with mulch and for-
get about weeds. Weeds will get through some gardening plastic they will not
get through wet newspapers.
Broken Glass
Use a wet cotton ball or Q-tip to pick up the small shards of glass you can't see easily.
No More Mosquitoes
Place a dryer sheet in your pocket.
It will keep the mosquitoes away.
Squirrel Away!
To keep squirrels from eating your plants, sprinkle your plants with cayenne pepper.
The cayenne pepper doesn't hurt the plant and the squirrels won't come near it.
Flexible vacuum
To get something out of a heat register or under the fridge add an empty paper towel
roll or empty gift wrap roll to your vacuum. It can be bent or flattened to get in nar-
row openings.
Reducing Static Cling
Pin a small safety pin to the seam of your slip and you will not have a clingy skirt
or dress. Same thing works with slacks that cling when wearing panty hose.
Place pin in seam of slacks and ... ta da! ... static is gone.
Measuring Cups
Before you pour sticky substances into a measuring cup, fill with hot water.
Dump out the hot water, but don't dry cup. Next, add your ingredient, such
as peanut butter, and watch how easily it comes right out.
Foggy Windshield?
Hate foggy windshields? Buy a chalkboard eraser and keep it in the glove box of
your car When the window s fog, rub with the eraser! Works better than a cloth!
Reopening envelope
If you seal an envelope and then realize you forgot to include something inside,
just place your sealed envelope in the freezer for an hour or two. Viola! It unseals
easily.
Conditioner
Use your hair conditioner to shave your legs. It's cheaper than shaving cream and
leaves your legs really smooth. It's also a great way to use up the conditioner you
bought but didn't like when you tried it in your hair.
Goodbye Fruit Flies
To get rid of pesky fruit flies, take a small glass, fill it 1/2' with Apple Cider Vinegar
and 2 drops of dish washing liquid; mix well. You will find those flies drawn to the
cup and gone forever!
Get Rid of Ants
Put small piles of cornmeal where you see ants. They eat it, take it 'home,' can't
digest it so it kills them. It may take a week or so, especially if it rains, but it works
and you don't have the worry about pets or small children being harmed!
INFO ABOUT CLOTHES DRYERS
The heating unit went out on my dryer! The gentleman that fixes things around the
house for us told us that he wanted to show us something and he went over to the
dryer and pulled out the lint filter. It was clean. (I always clean the lint from the fil-
ter after every load clothes.) He told us that he wanted to show us something; he
took the filter over to the sink and ran hot water over it. The lint filter is made of a
mesh material ... I'm sure you know what your dryer's lint filter looks like. Well ...
the hot water just sat on top of the mesh! It didn't go through it at all! He told us
that dryer sheets cause a film over that mesh that's what burns out the heating unit.
You can't SEE the film, but it's there. It's what is in the dryer sheets to make your
clothes soft and static free ... that nice fragrance too. You know how they can feel
waxy when you take them out of the box ... well this stuff builds up on your clothes
and on your lint screen. This is also what causes dryer units to potentially burn your
house down with it! He said the best way to keep your dryer working for a very long
time (and to keep your electric bill lower) is to take that filter out and wash it with
hot soapy water and an old toothbrush (or other brush) at least every six months.
He said that makes the life of the dryer at least twice as long! How about that!?!
Learn something new everyday! I certainly didn't know dryer sheets would do that.
So, I thought I'd share!
Note: I went to my dryer and tested my screen by running water on it. The water ran
through a little bit but mostly collected all the water in the mesh screen. I washed it
with warm soapy water and a nylon brush and I had it done in 30 seconds. Then when
I rinsed it ... the water ran right thru the screen! There wasn't any puddling at all!
That repairman knew what he was talking about!
pick the little 'stringy things' off of it. That's how the primates do it.
Take your bananas apart when you get home from the store.
If you leave them connected at the stem, they ripen faster.
Store your opened chunks of cheese in aluminum foil.
It will stay fresh much longer and not mold!
Peppers with 3 bumps on the bottom are sweeter and better for eating.
Peppers with 4 bumps on the bottom are firmer and better for cooking.
Add a teaspoon of water when frying ground beef.
It will help pull the grease away from the meat while cooking.
To really make scrambled eggs or omelets rich add a couple of
spoonfuls of sour cream, cream cheese, or heavy cream in and then beat them up.
For a cool brownie treat, make brownies as directed. Melt Andes mints
in double broiler and pour over warm brownies. Let set for a wonderful minty frosting.
Add garlic immediately to a recipe if you want a light taste
of garlic and at the end of the recipe if your want a stronger taste of garlic.
Leftover snickers bars from Halloween make a delicious dessert. Simply
chop them up with the food chopper. Peel, core and slice a few apples. Place them
in a baking dish and sprinkle the chopped candy bars over the apples. Bake at 350
for 15 minutes!!! Serve alone or with vanilla ice cream. Yummm!
Reheat Pizza
Heat up leftover pizza in a nonstick skillet on top of the stove, set heat to med-low
and heat till warm. This keeps the crust crispy. No soggy micro pizza. I saw this on
the cooking channel and it really works.
Easy Deviled Eggs
Put cooked egg yolks in a zip lock bag. Seal, mash till they are all broken up. Add remainder of ingredients,
reseal, keep mashing it up mixing thoroughly, cut the tip of the baggy, squeeze mixture into egg.
Just throw bag away when done easy clean up.
Expanding Frosting
When you buy a container of cake frosting from the store, whip it with your mixer
for a few minutes. You can double it in size. You get to frost more cake/cupcakes
with the same amount. You also eat less sugar and calories per serving.
Reheating refrigerated bread
To warm biscuits, pancakes, or muffins that were refrigerated, place them in
a microwave with a cup of water. The increased moisture will keep the food
moist and help it reheat faster.
Newspaper weeds away
Start putting in your plants, work the nutrients in your soil. Wet newspapers,
put layers around the plants overlapping as you go cover with mulch and for-
get about weeds. Weeds will get through some gardening plastic they will not
get through wet newspapers.
Broken Glass
Use a wet cotton ball or Q-tip to pick up the small shards of glass you can't see easily.
No More Mosquitoes
Place a dryer sheet in your pocket.
It will keep the mosquitoes away.
Squirrel Away!
To keep squirrels from eating your plants, sprinkle your plants with cayenne pepper.
The cayenne pepper doesn't hurt the plant and the squirrels won't come near it.
Flexible vacuum
To get something out of a heat register or under the fridge add an empty paper towel
roll or empty gift wrap roll to your vacuum. It can be bent or flattened to get in nar-
row openings.
Reducing Static Cling
Pin a small safety pin to the seam of your slip and you will not have a clingy skirt
or dress. Same thing works with slacks that cling when wearing panty hose.
Place pin in seam of slacks and ... ta da! ... static is gone.
Measuring Cups
Before you pour sticky substances into a measuring cup, fill with hot water.
Dump out the hot water, but don't dry cup. Next, add your ingredient, such
as peanut butter, and watch how easily it comes right out.
Foggy Windshield?
Hate foggy windshields? Buy a chalkboard eraser and keep it in the glove box of
your car When the window s fog, rub with the eraser! Works better than a cloth!
Reopening envelope
If you seal an envelope and then realize you forgot to include something inside,
just place your sealed envelope in the freezer for an hour or two. Viola! It unseals
easily.
Conditioner
Use your hair conditioner to shave your legs. It's cheaper than shaving cream and
leaves your legs really smooth. It's also a great way to use up the conditioner you
bought but didn't like when you tried it in your hair.
Goodbye Fruit Flies
To get rid of pesky fruit flies, take a small glass, fill it 1/2' with Apple Cider Vinegar
and 2 drops of dish washing liquid; mix well. You will find those flies drawn to the
cup and gone forever!
Get Rid of Ants
Put small piles of cornmeal where you see ants. They eat it, take it 'home,' can't
digest it so it kills them. It may take a week or so, especially if it rains, but it works
and you don't have the worry about pets or small children being harmed!
INFO ABOUT CLOTHES DRYERS
The heating unit went out on my dryer! The gentleman that fixes things around the
house for us told us that he wanted to show us something and he went over to the
dryer and pulled out the lint filter. It was clean. (I always clean the lint from the fil-
ter after every load clothes.) He told us that he wanted to show us something; he
took the filter over to the sink and ran hot water over it. The lint filter is made of a
mesh material ... I'm sure you know what your dryer's lint filter looks like. Well ...
the hot water just sat on top of the mesh! It didn't go through it at all! He told us
that dryer sheets cause a film over that mesh that's what burns out the heating unit.
You can't SEE the film, but it's there. It's what is in the dryer sheets to make your
clothes soft and static free ... that nice fragrance too. You know how they can feel
waxy when you take them out of the box ... well this stuff builds up on your clothes
and on your lint screen. This is also what causes dryer units to potentially burn your
house down with it! He said the best way to keep your dryer working for a very long
time (and to keep your electric bill lower) is to take that filter out and wash it with
hot soapy water and an old toothbrush (or other brush) at least every six months.
He said that makes the life of the dryer at least twice as long! How about that!?!
Learn something new everyday! I certainly didn't know dryer sheets would do that.
So, I thought I'd share!
Note: I went to my dryer and tested my screen by running water on it. The water ran
through a little bit but mostly collected all the water in the mesh screen. I washed it
with warm soapy water and a nylon brush and I had it done in 30 seconds. Then when
I rinsed it ... the water ran right thru the screen! There wasn't any puddling at all!
That repairman knew what he was talking about!
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