The Relationship Between Home Prices and Rent Amounts

Image by Getty Images via DaylifeIt is widely accepted that rent amounts are a fundamental factor in determining the value of housing. If housing prices rise too far out of line with rents, a combination of declines in home values and increases in rent amounts will ultimately occur and enable these two averages to correct back toward each other. Although this relationship between housing values and rents has endured the many peaks and valleys of past real estate cycles, the events of the years from 1996 to 2006 strained this interconnection to unprecedented extents. However, just as gravity causes objects to eventually fall to the earth, subsequent years have shown that this correlation between housing prices and rent is destined to survive.

An examination of Freddie Mac’s conventional mortgage house price index reveals that United States home prices doubled from 1996 to 2006. Alternatively, the consumer price index shows that rent amounts only increased half as much as sales prices over the same period of time. This created an identifiable imbalance in this typically synchronized relationship, which then served as a reliable predictor of the paths that both home values and rental amounts would follow in the years to come.

As if imitating a cinema production featuring two lovers involuntarily forced apart, the years of 2007 and 2008 set the scene for housing prices and rents to once again be reunited. Nationwide housing values tumbled by approximately 35% in these two years according to the market tracking company MDA DataQuick. Responding on cue, the real estate research firm RealFacts Inc. reported that rents increased by approximately 10% over the same period.

It may seem illogical that rents could actually increase amidst falling home prices and the economic downturn that usually accompanies a poor housing market. Yet it is actually a poor economic environment that often acts to stimulate the residential rental market. For example, the decline of economic conditions from 2007 through 2008 brought the construction of new housing and apartments to a virtual halt, thereby stunting the supply of available rental property. Simultaneously, the demand for rentals was enhanced by a dramatic increase in the size of the available tenant base. Families displaced from foreclosed properties, growing populations, potential buyers refraining from purchasing until home prices stabilize, difficulties in obtaining financing, and widespread job losses all contributed to make renting a very attractive option for large segments of the population.

As evidenced above, housing prices and rents remained interconnected despite the intense pressures that pulled them apart. Although often overlooked, this durable relationship should be utilized to help predict housing market conditions and prevent the occurrence of economic crises well into the future.

Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or www.icenhowerrealestate.com

Getting the Best Out of Your Property

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For most people, being able to seize a lucrative investment opprtunity is a hard nut to crack. Money is not easy to come by and that’s a universal truth now. Whatever amount of money people spare to invest for a secure future is their long-time saving and the fruit of a lifetime of toil, which, of course, they cannot afford to stake in risky investment adventurisms. What they need is a safe investment that can yield high returns and assure them of a secure future.

Today, the most reliable of all investments remains real estate investment. Property is one area where you can put in your hard-earned money with complete confidence and rest assured of high profits. Unlike other forms of investment, investment in real estate in any major property market of the world has the potential to bring you high returns in all circumstances. A shelter over head is what everybody needs anyway, just like food and other basic necessities for the sustenance of life. The demand for property thus never sees a sharp drop even in the midst of the worst financial crisis like the one we face today.

The current global financial slump may have caused the real estate investment to temporarily slow down, but the demand for property for sale and rent is still there. Real estate rental, for one, has remained almost unaffected by the financial crisis and both short term and long term rental industries have continued to boom. Those looking to buy property, though now reduced in number given the current economic situation, are still out there hunting for a suitable property for sale. Numerous real estate developments are continuously being initiated and launched across the world and some developments are snapped up when still in the off-plan phase.

We can easily see how the property investment remains nearly completely intact even in unfavourable economic conditions. Property in the world’s major markets like Dubai, UAE, Turkey, Italy etc is still strong in demand and analysts predict that the markets that appear to be failing today will regain their previous status fully by 2010. The present real estate situation and the future predictions should be a big reassurance for the indecisive minds about investing in property.

Daniel Marshall is a senior real estate consultant associated with Better Homes, a leading real estate firm in Dubai, UAE. He has more than 25 years of hands on experience of working in Dubai property market and is well aware of the latest trends in real estate for sale in Dubai, UAE. His firm Better Homes offers online Dubai property listings, property management and property investment services. The company provides professional assistance in selling, renting and buying real estate and helps one find">http://www.bhomes.com/uae/property/advance-search.aspx">find a property in Dubai, UAE and across the globe with ease. For more information please visit http://www.bhomes.com

Tips When Dealing With Real Estate Sales Agents

Image by Getty Images via DaylifeWe hire professional real estate agents at the time of selling our property. This is because we know that due to their experience with sales they are more like to achieve a better deal. However, dealing with real estate agents can be a difficult and a tricky task. It’s important that you know the tricks of the trade so that they do not fool you. Follow some of the tips to get the maximum advantages and a good value for your property.

Agents usually work on commission and they do not usually get paid, until they are able to close a transaction. This is the main reason, why they usually hurry and try to close a transaction as soon as possible. So, keep in mind, that whatever opportunity and buyer they provide you may not always be the best deal. Do some exclusive research before closing a deal.

Your real estate agent should have full knowledge of the property, about its advantages as well as disadvantages. Provide the agent with all the information that is required to make the best possible presentation of the property.


Many real estate agents carry a license. So if you are appointing a new individual, just make an inquiry if his license is valid and of the number of deals that he has made in the past.

It’s important that you enter a small agreement with your agent. This may not be compulsory, but this is a good way to ensure that your credibility is safe and you are not deceived.


It is important that you sign the listing agreement. This specifies the duration of the agreement between the agent and seller.

Before you sign-up a real estate agent you should verify his professional experience. This will give you an idea about his knowledge, expertise, professionalism and his capability to handle your property selling venture.


If you find that your agent is confident and experienced enough to handle the situation ensure that he provides a guarantee against misuse of the property. Most real estate agents do not shy away from offering such guarantees as they help uphold the clients’ confidence in them.

Also keep in close contact with the agent. There should be no communication gap. Always keep a track about the kind of buyers he is approaching, the method of advertising that he is undertaking and the effort and time which he is putting in for the sale of the property. This is important to know, just to make sure that your property is in safe hands.


Lastly, never fully trust your real estate agent. Verify all documents yourself; check all papers so that you have a knowledge about everything that is taking place. He/she is just a commission agent and not the owner of the property.

Joe is a keen amateur confectioner, and runs Chocolate Now!, an online Chocolate Delivery service, with her husband Nigel. You can find more of her recipes at www.chocolate-now.co.uk/recipes.

Having a Dream of Own Inground Swimming Pool? Look for Build-my-own-inground-pool!

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It is a fact that everyone wish to have numerous facilities and features at his home. Either it is related with their daily needs or the facilities related with the entertainment.

There are various features which if applied then can make the life of the people luxurious. One such recommendable feature is the creation of inground swimming pool at home. The worth of swimming pool is not confined to resorts and five star hotels only. People can create them by their own and enjoy their free time in a better way.

If you go for the labor available outside then it can prove to be hugely expensive for you. Matching up with the over all plan and the construction of pool building is not a child’s play. This is the reason why people hesitate to put their hands into such things.

If you think the same personally then you are right to some extent. But the creation of inground swimming pool is not going to be a daunting task if you get the assistance and guidance from a reliable source. Here we are talking about those experts who are specialized in handling such tasks and are proficient enough to offer best possible control to others.

Like most of the people you can also take necessary help from the technology. It is quite easy for you to get linked with the fast and foremost means of communication available today i.e. internet. With the help of internet you can surf for various sites available online that can help you with all kinds of favors required for the construction of swimming pool.

There are a fair number of sites available which you can trust upon for the purpose of getting tips, information, manuals as well as plans. In other words, all you are required to construct a ‘do it yourself’ inground swimming pool.

If you are expecting a trustworthy name over here then you are not wrong! There is one leading site available on the internet which you can rely upon for building a ‘do it yourself’ swimming pool. The name of that site is Build-my-own-inground-pool and it is one of the most dependable names currently existing in the market.

There are several features and reasons that are favorable to this site. For your ease and convenience few of them are provided below.

• Better assistance: if you are expecting foremost guidance at each and every step then Build-my-own-inground-pool is the right name that you should look for. It will eventually provide you a handsome package of pictures, sketches and architect’s plans.

• Better support: if you have any sort of query or question related with the building of your own pool in the lawn then you can feel free to contact for support via mail any of the time. You can also demand for detailed pictures so that you can avail the desired results in no time.
  

• References: for your confirmation, you can go for the references available with you. You can include the experts available in the market and the people who have already availed such kind of unique service. It is guaranteed that most of them will suggest you the name of Build-my-own-inground-pool only.

Avail architect’s plans related with inground swimming pool and other manuals associated with How to build a swimming pool from Build-my-own-inground-pool.

What are Your Options to Stop House Foreclosure

Image by respres via FlickrThere are several options open to you when you are looking at ways that you can stop house foreclosure. What those options are vary from situation to situation and involve several factors including your mortgage company, your state’s laws and most importantly, you. So what are some of these options?

A Loan Modification. This can take many different forms. It could be a modification of the interest rate on your loan. It could be a modification to the length of your loan. You are going to need to talk to your mortgage company if you want to try to go this route. You will have to figure out with them what you can qualify for and what will work for your situation in order to stop house foreclosure.

Sell Your Home. This one can get complicated, especially if you owe more on your loan than what the house is currently worth. If you no longer want to live in the house or if you simply cannot afford it anymore, this can be a good option to stop house foreclosure. This works the best when you can sell the house for a profit or can at least not sell it at a loss. If you do owe more on the house than what it can sell for, you are going to have to try to work out a short sale agreement with your mortgage company. This one can get difficult and mortgage companies are often very slow about approving these. Your mortgage company can also simply decide that they are not going to approve it.

Paying the Mortgage Current. This does not have to be as difficult as it sounds. You may be able to workout an arrangement with the mortgage company to pay back what you owe them in installments. Different mortgage companies have different requirements and guidelines for this so you will need to check with your mortgage company to see if this is an option for you to stop house foreclosure. Chances are that this will mean that you have to bring in some extra income for a while so be sure that this is something you can afford.

Finding a way to stop house foreclosure on your home does not have to be difficult. You just need to look at the different options open to you and then actively work with your mortgage company to make it happen. Get more free foreclosure help at http://www.stopping-home-foreclosure.com/StopHouseForeclosure.html

The Truth Behind Rental Bond

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You've found a good apartment that seems well within your budget, so the next step is to sort out how much money it will cost to move in. One of the costs you will have to consider is the amount of the rental bond, a sum of money that protects the landlord in the event that you damage the property in some way or move out without paying any valid expense that is due. The landlord can deduct the cost of any money you owe from the rental bond when you move out. You should receive the entire sum back after you move out as long as you leave no damage to the premises and are paid up on your rent or other valid expenses when you leave.

The landlord may also ask you to pay some rent in advance before you move into your new apartment. If your lease is for a fixed term the landlord can only require you to pay one month's rent in advance, and if you are renting a moveable dwelling (such as a caravan or a manufactured home) you can only be charged up to two weeks' rent in advance. The rental bond, however, is in addition to any rent payment you must make in advance.

If your rent is $500 a week or less your landlord can only charge an amount equal to 4 weeks' rent for the rental bond, but if the rent is more than $500 a week there is no limit on the amount of the bond. If the amount your landlord asks seems too high you might try negotiating a lower amount.
If your rent is subsidised by an employer, the maximum bond is the greater of $400 or the equivalent of four weeks’ rent (two weeks’ rent for movable dwellings).

After you have paid the rental bond your landlord must immediately give you a receipt. For safekeeping, your landlord must send your rental bond to the Residential Tenancies Authority (RTA) within 10 days of receiving it. The RTA will hold the bond in trust until you move out of the apartment, and they should send you an Official Receipt within a few weeks to let you know they've have received the bond. Do not lose this notice ? it has your Rental Bond Number on it, which you'll need to use if you contact the RTA about the bond.

Suppose that your rent is $500 a week, and your landlord asks for $2,000 for a rental bond. You, however, have only $1,000 left in your account. What do you do?

The first thing you should try is to ask the landlord if you can make payments over time. He may accept $1,000 now with the other $1,000 due at the first of next month (or whenever it works out with your pay schedule). He may agree to let you pay $500 a month for the first four months. You haven't anything to lose, so why not ask for favourable terms? If the landlord does turn you down, you can always try to get an interest-free bond easy loan from the Department of Housing. There are certain income limits and other criteria that must be met to qualify for a bond loan, so contact your nearest Department of Housing for more details.

Suppose that you are moving from one apartment to another. You new landlord is asking for a rental bond before you move in, but your current landlord is still holding on to the rental bond money you paid to him for your old apartment. You may be able to transfer your bond from your old apartment to your new place if you can’t get your hands on a source of quick cash before payday and if both landlords agree. Simply ask your current landlord to fill out a Transfer of Bond (Form 3) and send it to the RTA.

If you do attempt a bond transfer, your first landlord still has the right to deduct any monies due from damages or other claims before the bond money is transferred to your new landlord. You and your new landlord will also have to fill out a Bond Lodgement (Form 2) and send it to the RTA. You will still have to pay any additional bond amount due if the new bond is more than your previous bond amount.

Most of the rules regarding rental bonds come from the Residential Tenancies Act 1994, and your landlord cannot charge a rental bond fee to cover the costs of complying with this law. Visit the RTA website for full details. Bond is not a source of easy money, so it is important that your bond is treated under the law. If you feel your payment has been misused, you can contact the RTA and access their dispute services.

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