Friday, July 31, 2009

Daily Real Estate News

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July 31, 2009

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AGENT ALERT:
NAR reports 87% of buyers go online to find their next home. Get the all-new FREE Agent Success Kit and see how you can leverage the Market Shift and make these buyers YOUR clients. Click Here for Your Success Kit—AND Get a FREE Business Consultation.

Buyers, Sellers Rank Real Estate Companies
Coldwell Banker and Keller Williams emerged on top for customer service in 2009 satisfaction ratings. See how other real estate companies ranked in the J.D. Power study.
Read more >
FHA Program to Help Struggling Home Owners
The newly enhanced FHA Making Home Affordable Loan Modification program will help cash-strapped home owners reduce their monthly mortgage payments and stay in their homes, NAR says.
Read more >
Court Throws Out Mortgage Brokers' RESPA Suit
Brokers will now be required to disclose lender rebates and credit borrowers at closing.
Read more >
More Property Tax Bills Go Unpaid
Delinquency has doubled in areas of the United States where the housing market has been hardest hit.
Read more >
Fannie, Freddie Unlikely to Return Aid
FHA director says the two firms should not be nationalized, but will stay unprofitable in the near future.
Read more >
Unemployment Batters Housing Market
Job losses are shifting the foreclosure trend to regions that were previously unscathed.
Read more >
Industrial Vacancies Rise, Rents Fall
Warehouse and other industrial property vacancies hit a five-year high, with new construction at a standstill.
Read more >

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Quick Sales Scripts: Know What to Say
"Reg. Z" Rules Could Slow Closings
Poll: How Much Do You Spend on Closing Gifts?
Has Pro Bono Work Helped Your Business?
Have you ever donated your services as a practitioner? Then, REALTOR magazine wants to hear from you.
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Housing Opportunity Program E-Newsletter August 2009

NAR's Housing Opportunity Newsletter logo
AUGUST 2009

HOP NEWS & UPDATES

Ira Gribin Workforce Housing Grants Update

On July 29th, NAR conducted its second Ira Gribin Workforce Housing Grants Webinar. This session featured representatives from two states that have already received grants through the program and also highlighted new application tools and tips. The sessions was recorded and posted on the program webpage for viewing. Questions about the program should be directed to Lora McCray at iragribingrants@realtors.org.


Expanding Housing Opportunities Class Update

At the NAR Annual Conference in San Diego, NAR will offer the new Expanding Housing Opportunities (EHO) course, a new 6-hour course designed to educate Realtors® on affordable housing opportunities; affordability impacts; affordable financing options; and leveraging partnerships and resources to expand housing opportunities in your community. The class will be held on Wednesday, November 11th from 9am to 3:30pm. To register for this class, sign up online on the NAR Annual Meeting website. In addition to the EHO course, we will also be conducting an Instructor Training for new EHO Instructors. Candidates must be pre-approved to participate in the Instructor Training. If you are interested in becoming an instructor for the EHO course, e-mail Lora McCray at lmccray@realtors.org to obtain the instructor application.


2009 Pulse Survey Reveals Downpayment, Closing Costs Still Greatest Obstacles to Homeownership

Most households still consider having enough money for down payment and closing costs their biggest obstacles to buying a home. That's according to the 2009 National Housing Pulse Survey, an annual survey released July 2009 by NAR. Two-thirds think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership. Read more about the survey.


Sponsor a Home From Work Class

Unlock a new market for REALTORS® by sponsoring a Home From Work class. The three-hour Home From Work class teaches REALTORS® how to work with local employers to implement an employer-assisted housing (EAH) benefits program. See how your association or firm can sponsor a Home From Work class in your community. If a Home From Work class isn't offered in your area, please contact your local REALTOR association and ask them to sponsor a class.



LEGISLATIVE & REGULATORY NEWS

Congress Unlikely to Consider Tax Credit Until October

Leaders of the tax-writing committees have announced that they will not take up expiring provisions, including the first-time homebuyer tax credit, until they have disposed of the health reform legislation. Thus, extension and possible expansion of the $8000 tax credit are unlikely to be considered until about October. NAR encourages its members to complete pending transactions as soon as possible because of the potential for uncertainty as the December 1 expiration date approaches. In-Depth: 2009 First-Time Home Buyer Tax Credit.


Home Affordable Refinance Program Expanded to Up to 125% LTV

On July 1, Secretary of Housing and Urban Development, Shaun Donovan, announced expansion of the Home Affordable Refinance Program to permit refinancing of existing Fannie Mae and Freddie Mac loans with LTVs up to 125 percent (up from the current LTV limit of 105 percent). The goal of the refinance effort, as announced by the President, is "to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices." Learn more about the Home Affordable Refinance and the Making Home Affordable programs.



HOUSING & ECONOMIC INDICATORS

Pending Home Sales Index

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity. Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. "Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions," he said. Read the News Release.


Existing-Home Sales

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June. We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions," says NAR Chief Economist Lawrence Yun. Read the NAR News Release.


See all the housing & economic indicators.


HOUSING OPPORTUNITY NEWS & UPDATES

Housing Opportunities Initiatives

The National Association of Realtors® and the U.S. Conference of Mayors named the Lexington-Bluegrass Association of Realtors® and the city of Lexington, KY, a 2009 Ambassador City for the success of two homeownership programs, Repair Affair and the Remodeling for Access and Mobility Program (RAMP). The programs help low-income homeowners make much needed repairs and modifications. Read the press release.


Housing Opportunity Resources

Get The Basics on Short Sales Transactions
Understanding short sales transactions is critical to success in today's market. Find tools to help you navigate the short sales process in this online guide, which includes process documentation, buyer and seller handouts, and more.

Fannie Mae Offering e-News for Real Estate Professionals
Fannie Mae has set up an electronic newsletter targeted to practitioners. You can subscribe to get news from Fannie Mae on policies, products, and other topics, including Fannie Mae real estate.

Survey Reveals HVCC Impacts for REALTORS®, Appraisers
Read about how the Home Valuation Code of Conduct (HVCC) implementation is affecting REALTORS® and appraisers across the country, as reported by NAR Research.

Freddie Mac's Guide on the Making Home Affordable Program
Information on refinancing and modification options to help more troubled and current borrowers with critical solutions through these initiatives that will help stabilize home ownership for the nation's families and their communities.

Solutions for Working Families - Post Conference Update
On June 28th, 400 policymakers, advocates and practitioners from across the US came together in Chicago at the Solutions for Working Families Conference to examine housing policy and discuss innovative housing solutions at the state and local level. If you missed the conference, you can download recordings of the keynote sessions, conference presentations, and handouts. In conjunction with the conference, the Center for Housing Policy released a new series of Fact Sheets and Talking Points on today's most relevant houing policy issues, designed to help state and local officials make the case for affordable housing in their communities.


HOP Partner Spotlight

National Housing Conference and the Center for Housing Policy
The National Housing Conference's research affiliate, the Center for Housing Policy, specializes in developing solutions through research. In partnership with NHC and its members, the Center works to broaden understanding of the nation's housing challenges and to examine the impact of policies and programs developed to address these needs. Combining research and practical, real-world expertise, the Center helps to develop effective policy solutions at the national, state and local levels that increase the availability of affordable homes.




If you would like more information about the Housing Opportunity Program please contact us at housingopportunity@realtors.org.


NATIONAL ASSOCIATION OF REALTORS®
Housing Opportunities Program
500 New Jersey Avenue, NW Washington, DC 20001

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EVENTS & TRAININGS

Home From Work Classes

  • August 6 - Charlotte, Charlotte Regional Realtor Association
  • August 7 - Greenville, Greater Greenville Association of Realtors
  • August 12 - Las Vegas, Greater Las Vegas Association of Realtors
  • August 27 - Marietta, Cobb Association of Realtors
  • September 15 - Loveland, Colorado Association of REALTORS®
  • September 16 - Pueblo, Colorado Association of REALTORS®
  • September 17 - Grand Junction, Colorado Association of REALTORS®
  • See all Upcoming Classes

    Webinar - Mortgage Finance: What's Really Available Today
    Is home mortgage financing available only to consumers with strong credit ratings and the ability to make down payments of 20 percent? What about the availability and affordability of jumbo loans? Get the lay of the land in a REALTOR® magazine Webinar, sponsored by Bank of America, on mortgage finance issues today. Playback or download now. Original presentation date was June 25.

    Thursday, July 30, 2009

    Now Only 7 Days Remain...



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    Daily Real Estate News

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    July 30, 2009

    Advertisement
    AGENT ALERT:
    NAR reports 87% of buyers go online to find their next home. Get the all-new FREE Agent Success Kit and see how you can leverage the Market Shift and make these buyers YOUR clients. Click Here for Your Success Kit—AND Get a FREE Business Consultation.

    Most Signs Point to a Long, Slow Recovery
    Job losses and other economic ills have replaced bad mortgages as the problem holding up a sustained turnaround in the housing market.
    Read more >
    Virtual Staging: Brilliant and Maybe Dangerous
    This new practice can open buyers' eyes, but also may have them seeing red later if they think they've been misled.
    Read more >
    Entrepreneur Identifies 10 Do-Business Cities
    Magazine's research says Youngstown, Ohio, and Madison, Wis., are among a group of familiar fast-growth cities.
    Read more >
    Skeptics Say Lenders Ignore Loan Mods
    In the face of criticism, one lender challenges the idea that it isn't motivated to perform loan modifications.
    Read more >
    KB Home and Others Shrink Entry-Level Homes
    Companies attribute increased sales to construction of smaller, more efficient houses.
    Read more >
    Feds Charge Dozens in Mortgage Scam
    A mortgage fraud case in South Florida is similar to abuses seen during housing boom.
    Read more >

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    "Reg. Z" Rules Could Slow Closings
    Poll: How Much Do You Spend on Closing Gifts?
    8 Ways to Capitalize on Twitter
    Sign Up for July 30 Webinar: Use Social Media to Get Results
    REALTOR Magazine and the Young Professionals Network will be hosting a free July 30 webinar on how you can leverage social media tools to generate new leads and close deals.
    Read more >
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    24 Carat or 26%?

    Please CLICK HERE if you are unable to view this mailer correctly
    The Golden Truth: 24 Carat or 26%?

    24 Carat or 26%?

    According to an article in the Business Standard, 74% of the people surveyed said they prefer purchasing gold and gold-related products at these current price levels.

    So, are you in the 26% that did not wish to buy gold?
    Hmmm.

    Here are the main reasons why we think you should buy gold.

    1. Gold is the only currency to have survived through millennia and is not subject to government manipulation
      Gold is in many ways considered better than money. This is because the metal has a relatively fixed supply and is the only currency that cannot be inflated at the discretion of politicians or bureaucrats. The actual value of paper currencies is suspect as their supply can be increased by a decree to print larger amounts. Central bankers have been printing money over years leading to depreciation of the paper currency whereas gold acts as an excellent store of value preserving the purchasing power.

    2. Effective hedge against currency debasement and inflation
      In an effort to combat one of the worst financial crisis and recession, central bankers around the world have resorted to printing money in order to infuse liquidity in the economy. This money printing exercise leads to debasement of currency as it is not backed by any real asset and is only a piece of paper created at will and in as much quantity decided by them. As a result, money supply in the system has increased significantly. This increased money supply forms a large reservoir of money hanging over the economy. This would eventually translate into higher inflation.

    3. Profit from the decline in the value of U.S Dollar
      U.S has been forerunner in terms of debasing its currency. The dollar seems more vulnerable than ever given the extent to which the US Federal Reserve has expanded its balance sheet by printing money and the extent to which the federal government has widened the national deficit. Decades of deficit spending by the U.S federal government has built long term structural fiscal issues leading to deterioration of the U.S currency. Piling of new spending on top of already enormous deficits will have adverse consequences. Gold being an ultimate reserve currency moves inversely proportional to the world's reserve currency i.e. dollar.

    4. Hedge against crisis
      Gold acts as an excellent hedge against any economic and financial crisis. Gold is highly uncorrelated from most of the other traditional assets and therefore tends to minimize losses in times of negative equity markets. Gold is also much sought after in times of turmoil and financial upheaval which leads to increase in gold prices during such times.

    On account of all of the above reasons, we recommend a 15-20% allocation to gold.
    Click here to see the asset allocation that works best for you.

    But, make sure you invest in the "right" form of gold. Don't buy any form of gold.

    Buy the Quantum Gold ETF which owns the purest form of physical gold (0.995 fineness, which is 24 carats) on your behalf. The gold is safely locked up in a vault.

    Gold should be bought in Quantum Gold ETF because:

    • It is relatively inexpensive since it does not involve any price premium or making charges
    • Gold held is pure gold (0.995 purity) and purchased only from refiners accredited with the London Bullion Market Association.
    • It is hassle free as you need not worry about storing it securely - Quantum Gold ETF stores the physical gold in secured vaults.
    • Gold held by the Quantum Gold ETF is completely insured.
    • It is convenient to buy; the Quantum Gold ETF is listed on the NSE; just call your broker and place the order. Or buy it online - just as you would buy an equity share

    Given the above advantages, it would be a prudent decision to buy gold only in the form of Quantum Gold ETF.

    Why you should buy the Quantum Gold ETF:
    Since the launch of the Quantum Gold ETF in February, 2008 the annualized returns as on 30th June 2009 was a gain of +15% per annum vis-à-vis a loss of -12% per annum for the BSE-30 Index.
    Gold has proved to be a valuable hedge against declining equity markets.

    The Quantum Gold ETF has tracked gold prices very closely.
    The returns from the Quantum Gold ETF and domestic prices of gold are given below:

    Returns* Quantum Gold Fund Domestic price of Gold
    Since Inception (22nd Feb 2008) 15.14% per annum 13.72% per annum
    1 year 11.35% 12.40%
    *As on 30th June 2009

    While we like gold as an investment, we are not dazzled by its glitter.
    Nor are we swayed by the "fashion" of gold that seems to capture the imagination of others.

    Our views on gold are studied - and measured.

    We have written more than 30 articles to explain why you should - or should not - buy gold and how much of your wealth should be invested in gold.

    After all, for the 74% who are buying gold as a "store of value" they need to be informed on their investment.

    While many may sell you the concept of "making the trade" and going ahead with a 24 carat investment; we make sure we always monitor its value.
    And carefully explain why you should - or should not - own gold.

    So, whether you are part of the 26% that does not own the 24 carat store of value or whether you are part of the 74% that does own gold, feel free to contact us and we will be happy to explain why you should be a 100% Quantum Gold ETF investor.

    Buy Your Portfolio Insurance... Buy Gold... Now.

    Click here to invest in the Quantum Gold Fund ETF
    A Cheaper and Convenient way of owning High Quality Gold, Buy Now!

    To invest, call your broker and buy Quantum Gold Fund (ETF) on the NSE
    Code -
    (QGOLDHALF) or log on to your online trading account and place the order. Now!

    Click Here for a list of some prominent online brokers.

    ADVANTAGES OF QUANTUM GOLD FUND

    • One unit equals approximately half gram Gold
    • Backed by Gold of 0.995 fineness, which is secured and insured
    • Save on making charges and premiums
    • Low recurring expenses
    • No Wealth Tax and Concessional Long Term Capital Gains Tax after 1 year

    Click here to leave us a message

    OR
    CALL NOW
    - Toll Free: 1 800 22 3863 or +91 22 2282 9414
    For more information Click Here. You can also email us at Goldfund@QuantumAMC.com
    Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
    Click here for detailed risk factors and statutory information on the schemes

    Disclaimer: The views expressed in this article are of Quantum Asset Management Company Pvt. Ltd., and is in no way a definite prediction on trends of Gold. The views are based on past trends in the bullion markets, which may or may not be sustained in the future.

    This mail communication is an initiative of Quantum AMC Pvt. Ltd. If you do not wish to receive these in the future, kindly reply to this email marking "Unsubscribe" in the subject line.



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    Wednesday, July 29, 2009

    Property News Update from ludlowthompson.com: Yes We Can-ada: Government considers new mortgages

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    London Property News
    Property market news, tips and crazy stories
    W/C 27th July 2009
    Ministers consider backing insurance scheme for 'risky' mortgage offers, as tried and tested by other countries.
    Cash to kickstart halted housing developments
    A new government initiative aims to jumpstart the building work on hundreds of deserted development sites.
    How to make friends and not alienate landlords
    London's collection schemes make moving house or your spring clean easier, and give you that feel-good feeling.
    Water bills could put landlords in deep water
    The government's Walker Review of water charging and metering plans to make landlords liable for bills.
    Eastern Promise: Chinese banks offer mortgages
    Good news for investors as China's largest bank tries to tap into Britain's buy-to-let market.
    Warning: Cereal Invaders on the loose
    When you hear a banging about in the kitchen it might not be a burglar but a small furry hungry rodent.
    Reviews ludlowthompson 27/07/09
    Every day we seek reviews of ludlowthompson from customers about our service: here's what they say...
    Graduates: documents needed for renting
    To move quickly when you find the perfect place to rent, here's how graduate tenants can get prepared.
    Other Stories:
    Bricks and Mortar Seems Better than Banks 21st Jul 2009
    Great Expectations: housing market recovery 21st Jul 2009
    Attractive mortgages could cost you dearly 21st Jul 2009
    Tenant rental arrears recover from January dip 21st Jul 2009
    Beware, Big Brother-Style with Surerent 21st Jul 2009
    Does your household dog have hidden talents? 21st Jul 2009
    Mind the gap: House Asking and Sales prices get closer 15th Jul 2009
    ludlowthompson run fast for Centrepoint charity 15th Jul 2009
    Make a profit from your home's energy usage 15th Jul 2009
    Tax dodging landlords run out of places to hide 15th Jul 2009
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    Business Tips: Scripts That Answer Tough Questions

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    August 2009

    In This Issue:
    Scripts That Answer Tough Questions    Read now >
    Quiz: What Do You Know About HVCC?    Read now >
    Social Media Webinar: Getting Real Business Results    Read now >
    Participate in the Cost Vs. Value Survey    Read now >
    Write Effective Real Estate Ads    Read now >
    3 Liability Pitfalls You Should Avoid    Read now >
    Words of Wisdom: Get Educated, Make Connections    Read now >

    Advertisement
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    Scripts That Answer Tough Questions
    Today's buyers and sellers are brimming with questions and objections, especially when it comes to your commission. Knowing how to respond will determine your success. Read our new Quick Scripts from top sales coaches.
    Read more >
    Quiz: What Do You Know About HVCC?
    The Home Valuation Code of Conduct (HVCC) has stirred up plenty of controversy in the real estate world since it took effect May 1. Learn what's true and what's false about these new appraisal regulations.
    Read more >
    Social Media Webinar: Getting Real Business Results
    Attend our free webinar on July 30 for real-life lessons on how to use the social Web to generate business. Also, playback or download our other webinar on this topic: "Getting Started in Social Media."
    Read more >
    Participate in the Cost Vs. Value Survey
    Which home improvements boost a home's worth and help it sell faster? We want to hear about what's working in your market. Provide your input today for the 2009-10 Cost vs. Value Report.
    Read more >
    Write Effective Real Estate Ads
    Want to attract more clients to your listings through print advertising? Follow these simple, easy-to-remember steps for copy that will sing to buyers.
    Read more >

     

    3 Liability Pitfalls You Should Avoid
    From disclosing defects to speaking outside of your expertise, real estate has no shortage of liability risks. Get expert advice on how to handle three potentially career-threatening scenarios.
    Read more >
    Words of Wisdom: Get Educated, Make Connections
    Buddy Almy, a Texan who specializes in farm and ranch properties, says success comes through professional development and maintaining relationships with investors and wealthy clients.
    Read more >
    Architecture: Bungalows Standing Strong
    Does Your Listing Pass the 'Intended Purpose' Test?
    Real Estate Portion of Energy Bill Succeeds
    5 Places to Look for Online Training
    How I Sold It: Web Marketing Does the Trick
    8 Easy Ways to Build a Following on Twitter
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    Daily Real Estate News

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    July 29, 2009

    Advertisement
    FREE Real Estate Webinar “Achieving Growth in Your Real Estate Business”
    for agents of every experience level. Join us to see how to create a steady stream of prospects—and get a $25 gift card for attending. Sign Up Now—It’s FREE!

    Treasury Pushes Bankers on Loan Modifications
    Program to ease loan terms is falling far short of earlier government expectations of helping 3 to 4 million troubled borrowers.
    Read more >
    Mortgage Applications Decline for the Week
    Though interest rates barely budged, volume fell 6.3 percent but was still up more than 16 percent over the same period a year earlier, according to the Mortgage Bankers Association.
    Read more >
    Office Vacancies and Rents Are Still Slumping
    Vacancies rose 1 percent nationwide in the second quarter of 2009 with further increases expected this year, according to Colliers International.
    Read more >
    Author: Don't Abandon Underwater Mortgages
    Author David Bach says riding out market lows will pay-off in the end and that walking away from a property that is underwater is one of the worst things that home owners can do.
    Read more >
    Receivers Take on Foreclosure Hassles
    Some banks are tired of the costs of dealing with foreclosures and are turning over the properties to court-appointed receivers.
    Read more >
    Bargains Abound for Retirees
    Home prices have fallen as much as 40 percent from their peak in some popular retirement areas. Find out six retirement meccas where prices have dropped the most.
    Read more >

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    Poll: How Much Do You Spend on Closing Gifts?
    8 Ways to Capitalize on Twitter
    Psychologist Offers Successful Negotiating Tips
    Sign Up for July 30 Webinar: Use Social Media to Get Results
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    America Property Alerts, 29 July 2009

    America Property Alerts

    29 July 2009

    Dear APA Friend,

    This week, we've been looking at those US locations being tipped by various bodies as best-buys for property. We've also been sourcing a fantastic fractional ownership deal but I'll tell you more about that at the end of the email. For now, those 'hotspots'…

    According to ZipRealty's latest Home Hunter Report, Orlando, Phoenix and Atlanta are the most searched for cities. South Florida still demonstrates relatively high inventory levels and sellers are, in turn, accepting lower than average offers. California is also generating a lot of buzz at the moment; banks and sellers are continuing to provide properties at low enough prices to drive up demand, and in some instance there are reports of bidding wars.

    Austin, Texas seems to be being tipped by various pundits. The city boasts the country's lowest rate of unemployment (at 5.5 per cent) and has topped Forbes list of the country's ten best bargain cities. It possesses a robust economy and makes for a great place to live, not only as a state capital but also a technology centre and university town. When looking at statistics comparing June 2008 to June 2009, I can see an average fall of almost 5 per cent in house prices which suggests it has a steadier property market than most. When comparing average home prices to their 2006 peaks, they are down by a national average of 32 per cent.

    The cities of Bremerton and Silverdale in Washington both look set to see their house prices gaining steadily over the next few years. They both have stable economies with the US Navy effectively protecting them against heavy falls. Experts have predicted both cities' housing markets should start to see annual rises of 5.2 per cent for the next ten years. Located in the centre of the Kitsap Peninsula, Silverdale and Bremerton share over 300 miles of coastline; a huge draw for new residents. Both cities have low mortgages available, making this a great time for buyers - what's more, there are numerous bank-owned properties and short sales, providing opportunities for bargain hunters as well.

    Finally, we have sourced a superb fractional ownership deal in Panama. In brief? Villas can be purchased with 100 per cent ownership or fractional ownership and through a pension fund. There is a guaranteed rental income of 10 per cent p.a. on cash investments for the first two years and an estimated return of 11 to 12 per cent p.a. thereafter. Email me back – we have a brochure.

    Good Wishes,

    Iain

    Iain Maitland
    Editor, America Property Alerts

    PS. Please note, I am away on holiday from Sunday 16 August to Sunday 30 August. The alert service will continue whilst I am away although my online access will be limited and email correspondence will be delayed for the duration. Normal service will resume on Monday 31 August!

    PPS. Looking to let your holiday property? Holiday Lettings receives 65,000 unique visits per day and can significantly increase enquiries and bookings for you. Sign up to www.holidaylettings.co.uk and quote 45984 during the sign up process and you'll get 15 months advertising for the price of 12 months!

    America Property Alerts provides free e-alerts on American property news for subscribed members. You can subscribe only by signing up at the website at www.americapropertyalerts.co.uk. You can unsubscribe by clicking the link at the bottom of this e-mail.

    News provided by these free e-alerts is for general information only. Subscribers should not rely on this when making decisions. You are strongly advised to take independent professional advice before investing. America Property Alerts and its staff do not accept any liability for losses suffered by subscribers.

    You can write to America Property Alerts at Providence House, Little Sampford, Essex CB10 2QQ. You can email the editor, Iain Maitland, at Imaitland@aol.com.


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    Tuesday, July 28, 2009

    Daily Real Estate News

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    July 28, 2009

    Advertisement
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    New Home Sales Rise
    The National Association of Home Builders announced that closings on single-family homes rose 11 percent to an annualized rate of 384,000.
    Read more >
    Buyers Shouldn't Wait on Falling Prices
    Although housing prices are still falling in many areas, consumers should take into account other considerations when determining how much a home will cost.
    Read more >
    Vacancy Rates on the Rise
    Overbuilding and unstable economies have lead to high vacancy rates in certain cities.
    Read more >
    Fed and Lenders Meet Over Foreclosures
    Officials from the Treasury and HUD and 25 executives from mortgage companies plan to discuss programs to keep home owners intact.
    Read more >
    Job Firm Finds More Willing to Relocate
    A study by outplacement firm Challenger, Gray & Christmas Inc. found that 18 percent of recently hired employees relocated for the job.
    Read more >
    Profit From Commercial Real Estate's Fall
    With office vacancy rates at the highest level in four years, now is a good time for investors to consider commercial property.
    Read more >

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    Poll: How Much Do You Spend on Closing Gifts?
    8 Ways to Capitalize on Twitter
    Psychologist Offers Successful Negotiating Tips
    Sign Up for July 30 Webinar: Getting Started in Social Media
    REALTOR Magazine and the Young Professionals Network will be hosting a free July 30 webinar on how you can leverage social media tools to generate new leads and close deals.
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    Monday, July 27, 2009

    Websites are the most powerful tool in the history of business

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    Your Website does matter - people will make the decision to buy from you based on how your website looks and performs.

    Click HERE to learn more or call us at 714-553-1005 for a consultation that will earn you thousands of dollars in additional revenue.


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    Daily Real Estate News

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    July 27, 2009

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    Economists Optimistic That Market Is Upward Bound
    The housing market has the potential to generate "some quite large percentage increases" in the coming months, predicts one economist.
    Read more >
    NAR CEO Named One of Country's Top Leaders
    Dale Stinton was recognized as one of the nation's top association CEOs by CEO Update magazine for his leadership and ability to unite a diverse organization.
    Read more >
    5 Best Places for Youthful Retirees
    Younger retirees are settling in cities that offer fun and cost-effective living. Find out which cities made the list.
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    Easy Ways to Improve Curb Appeal
    Dress your seller's home so that it impresses buyers with these low-cost suggestions.
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    Home Owners Rent Rooms to Save Costs
    Some cash-strapped home owners are opting to rent out rooms in their home to avoid foreclosure and save money.
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    Positive Signs in West Point to U.S. Recovery
    Costal-market statistics show a trend toward favorable numbers that will likely spread across the country, according to a real estate commentator.
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    The Washington Report - July 27, 2009


    If you’re having trouble reading this e-mail, click here.
    Previous Issues

    In This Issue:

    Business Report
    New Privacy Bills Introduced

    Health Reform Bill Hits Snags in the House - Debate to Spill Over Into the Fall

    NAR Submits Letter to SBA Administrator Requesting SBA Eligibility for Real Estate Agents

    Conventional Residential Lending Report
    Federal Reserve Board Proposes Major Changes to TILA Disclosures for Mortgages and HELOCS

    Housing Report
    Additional HVCC Guidance Released by FHFA, GSEs Called Good First Step by NAR


    Business Report

    New Privacy Bills Introduced
    Two Privacy/Data Security bills were introduced in Congress this week. Senator Patrick Leahy (D-VT) reintroduced the Personal Data Privacy and Security Act (S. 1490). This bill would among other things, require entities that maintain personal data to establish internal policies to protect that data, and to give notice to individuals when they experience a breach involving sensitive personal data. In the House, Rep. John Tanner (D-TN) introduced the Social Security Number Privacy and Identity Theft Prevention Act. This bill would among other things, prevent the display of social security numbers to the general public, including on the Internet and would require other safeguards of individuals' social security numbers. These bills join several other privacy and data security bills that have been introduced this year. We expect that the debate over comprehensive privacy legislation will take place beginning this fall. NAR supports efforts to protect consumer privacy so long as new regulations do not unduly burden REALTORS®, the majority of whom run small businesses.

    FTC Press Release >
    FTC Testimony >

    Contacts: Melanie Wyne, 202-383-1234

    Contacts: Scott Rinn, 202-383-7508

    Contacts: Ken Wingert, 202-383-1196


    Health Reform Bill Hits Snags in the House - Debate to Spill Over Into the Fall
    After a lot of activity last week, the health care reform debate in the House turned very contentious this week. While both the Ways and Means Committee and Education and Labor Committees completed action on their portions of the House reform measure, HR 3200, the House Energy and Commerce Committee suspended its planned bill markup after the committee's Democrat Blue Dogs made public their concerns and unwillingness to support the Tri-Committee health reform bill as currently written.

    Through out the week, very mixed messages circulated as to whether or not the Energy and Commerce Committee will try to finish their markup prior to the recess . Some would seem to indicate that the Committee leadership may try to move the bill next week while others would indicate that the concerns stymying any action are unlikely to be resolved in time to do so. In either event, it is likely that any floor debate will likely take place after the August recess.

    In the Senate, the Finance has still not introduced its bill. Efforts to draft a true bipartisan measure continue. As a result, it's highly unlikely that the Senate will have time before it breaks for its August recess to reconcile differences between the Senate Health Committee and any eventual Finance Committee reform bills. Majority Leader Reid conceded late this week that a Senate floor vote will also take place this fall.

    NAR continues to meet with House leadership and committee staff on the various components of the House bill. Staff continue to analyze the mammoth bills and consult with the members of NAR's Business Issues Committee and Federal Tax Policy Committee for specific policy input. NAR has not taken a position on any of the health reform bills at this time.

    Visit www.realtor.org/healthreform >

    Contacts: Marcia Salkin, 202-383-1092

    Contacts: Ken Wingert, 202-383-1196

    Contacts: Scott Rinn, 202-383-7508


    NAR Submits Letter to SBA Administrator Requesting SBA Eligibility for Real Estate Agents
    On July 24, 2009 NAR sent a letter to SBA Administrator Karen G. Mills requesting that any restrictions be removed to real estate agent eligibility for SBA loans. The letter from NAR President Charles McMillan states that current SBA treatment of agent eligibility is unclear and amendments to regulations should be made to clarify that real estate agents are eligible for SBA loans.

    NAR letter to SBA Administrator >

    Contacts: Scott Rinn, 202-383-7508

    Contacts: Marcia Salkin, 202-383-1092

    Contacts: Russell Riggs, 202-383-1259


    Conventional Residential Lending Report

    Federal Reserve Board Proposes Major Changes to TILA Disclosures for Mortgages and HELOCS
    On July 23, 2009, the Federal Reserve Board (the Fed) proposed changes to its Truth in Lending Act (TILA) regulations designed to improve consumer disclosures received in connection with mortgages and home equity lines of credit (HELOC). The changes are based on consumer testing conducted by the Fed and are designed to enhance the ability of consumers to shop for and understand the cost of mortgages and HELOCS.

    The Fed announced it would work with the U.S. Department of Housing and Urban Development (HUD) to make disclosures under TILA complementary with the disclosures required by the Real Estate Settlement Procedures Act (RESPA). The Fed is considering developing a combined disclosure form that meets the requirements of both TILA and RESPA. NAR has urged the Fed and HUD to develop a single disclosure form.

    The proposal also prevents mortgage loan originators from steering consumers to more expensive loans by prohibiting payments to mortgage brokers or loan officers based on the interest rate or other loan terms.

    The public comment period will end 120 days after publication of the proposals in the Federal Register (expected soon).

    Federal Reserve Board Press Release (7/23/09), including numerous links to more detailed information >

    Contacts: Jeff Lischer, 202-383-1117

    Contacts: Tony Hutchinson, 202-383-1120


    Housing Report

    Additional HVCC Guidance Released by FHFA, GSEs Called Good First Step by NAR
    On July 22, 2009, the Federal Housing Finance Agency (FHFA) released a notice on the Home Valuation Code of Conduct (HVCC). The purpose of the notice is to clarify some misconceptions around the HVCC. The notice stressed that the Code provides for communications with appraisers about errors, additional needed information and unprofessional conduct. At the same time, Fannie Mae and Freddie Mac updated their Frequently Asked Questions for HVCC.

    NAR President Charles McMillan said the FHFA notice and updated FAQs by Fannie Mae and Freddie Mac are a good first step in addressing concerns with the HVCC but more needs to be done. Mr. McMillan said "our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area." NAR continues to call for an 18-month moratorium to further address the unintended consequences of the HVCC.

    NAR's HVCC Page >
    NAR Response to FHFA Notice >
    Federal Housing Finance Agency Notice >
    Fannie Mae HVCC FAQs >
    Freddie Mac HVCC FAQs >

    Contacts: Jerome Nagy, 202-383-1233



    Monday, July 27, 2009

    Useful Info:

    Government Affairs Homepage

    NAR News

    Credit Crisis Information

    Government Sponsored Enterprises (GSEs)

    FHA Resources

    Small Business Health Coverage

    Banking and Commerce

    All the issues NAR staff is working on

    Contact Government Affairs Staff

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    NATIONAL ASSOCIATION OF REALTORS®
    500 New Jersey Avenue, NW | Washington, DC 20001| 800/874-6500

    Friday, July 24, 2009

    Daily Real Estate News

    If you have trouble reading this e-mail click here.

    July 24, 2009

    Advertisement
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    Growth Leader from Market Leader gives you a steady stream of leads, plus a CRM that can help you close more deals. Discover how Growth Leader puts you in total control.

    When Will the Housing Market Rebound?
    While the housing market looks good in some areas, a nationwide recovery is tough to predict right now, experts say.
    Read more >
    30-Year Mortgage Rates Rise
    Average rates for 30-year mortgage loans climbed this week, causing concern that they could rise further and hamper a housing recovery.
    Read more >
    Fed Urges More Rules for Mortgage Applicants
    The Federal Reserve recommends new disclosure rules to better explain the mortgage process to borrowers.
    Read more >
    Countrywide Offers Assistance to Former Customers
    Bank of America, which acquired Countrywide a few months ago, has started issuing checks to former customers who are eligible for foreclosure assistance.
    Read more >
    Servicers Limit Participants in Loan Program
    The U.S. Government Accountability Office says Treasury Department's loan modification program is not reaching as many people as advertised.
    Read more >
    Zillow Debuts 'True Cost' Mortgage Calculator
    This new tool is intended to help borrowers understand how much they'll really pay in interest and fees, based on the amount of time they plan to live in a home.
    Read more >

    Advertisement
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    Real Estate Portion of Energy Bill Succeeds
    Poll: How Much Do You Spend on Closing Gifts?
    5 Meth Lab Warning Signs
    What's the Future of Commercial Demand?
    For a future story in REALTOR Magazine's commercial section, we'd like to hear your thoughts about what it will take for your market to recover.
    Read more >
    What Personal Safety Products Do You Use?
    We want to hear about what products or techniques you're using to protect yourself on the job.
    Read more >
    Master Social Media With These Webinars
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    Dear Savvy Investor,

    Way too many people take chances when investing in stocks.

    Time and time again, they bet their hard-earned money on little known companies.

    And when you ask them why they decided to invest in such risky stocks, the common reply is that they wanted to multiply their money fast... and somebody - usually a friend or a broker - told them these stocks could do that for them.

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    Imagine buying a company which controls 2/3rd of the Indian commercial vehicle market, and has in its stable some of the best selling four wheelers in the country... for dirt cheap!

    If indeed there were just one example of the 'Great Indian Corporate Sale', it would have been difficult to beat Tata Motors.

    This company sells about three hundred thousand commercial vehicles and more than two hundred thousand passenger vehicles every year.

    Therefore, in view of the attractive valuations, we asked our investors to take advantage of the sale.

    Those who have are currently sitting on an impressive 124% gain. And there could be lot more to come.

    Why we recommended Tata Motors. . .

    Tata Motors

    Though Tata Motors is a good company with strong fundamentals, it ran into some pretty turbulent weather at the time... and that led many people to believe the company was about to go bankrupt.

    In fact, when we zeroed in on Tata Motors, its stock value had fallen about 75% from its highest levels in 2008.

    But we saw the future prospects for the company to be extremely good.

    So while everybody else was recommending a SELL on this stock, we suggested to our subscribers that they buy it instead.

    And the stock is up 124% since then.

    Now imagine making 58%
    on India's largest oil company. . .
    Again without any risk!

    There's no way that international crude oil prices would have remained in the mid 30s per barrel which they had touched during the depths of the bear market.

    Everyone believed the prices will go lower still. We believed otherwise and went about looking for investment opportunities in oil.

    The best thing, of course would have been to play in the crude oil futures market. However, we have no expertise in that.

    So we did the next best thing instead. We took an exposure to rising crude oil prices through ONGC, India's largest public oil exploration company.

    ONGC

    What's more, we also got access to a management with a wealth of experience in the field and a balance sheet that was rock solid.

    And when oil prices started to look up as we had anticipated, our recommendation was rewarded with a 58% gain in a matter of few months.

    The lesson:
    You Don't Have To Invest In Risky Stocks
    To Become Rich

    Yes! Let me repeat it one more time so that it's absolutely clear...

    You don't have to invest in risky stocks to become rich.

    In contrast, you can get rich without taking any risk at all... by investing in the safest and sturdiest of all stocks - the blue-chip stocks.

    There are two major misconceptions people have when it comes to blue-chip stocks:
    • You cannot get them dirt-cheap
    • You cannot make huge returns from them
    Wrong!

    You CAN get blue-chip stocks
    Dirt-cheap!

    Take Zee Entertainment for example...

    Zee Entertainment

    We recommended this media company when there was a general pessimism towards Indian equities.

    Investors were dumping stocks left, right and center. They failed to realize that this company belongs to a sector where a slowdown is going to have minimal impact, not to mention that the company continued to hold promise from a long term perspective.

    This brought down the price of the stock greatly and made it attractive for investors.

    Furthermore, what made the case for Zee entertainment even more compelling was its firmly established position in the entertainment and broadcasting space.

    Hence, we recommended it to our subscribers...

    And when market came back to its senses, the stock had a fantastic run... going up by more than 35% in a span of few months.

    You CAN make big returns
    from blue-chip stocks!

    Like in the case of Maruti Suzuki...

    Maruti

    A strong balance sheet with virtually no debt, a formidable market reputation and a presence in a market where car penetration is woefully low were not enough reasons for investors to realize the long-term potential of this stock.

    But we're not complaining.

    When a mass exodus from the counter began, we knew we had a winner on our hands and if we sit patient for 2-3 years, attractive returns will follow.

    Luckily, it took markets a lot less than that to figure out the true potential of the company and there has been no looking back since.

    And it is now up a smart 86% since our recommendation.

    So what was the common thing in all these cases that made investing in these stocks so profitable, and so non-risky?

    1) They were all blue-chip companies
    2) They were all blue-chip companies IN DISTRESS

    Maybe you've wondered why so many people prefer blue-chips to other stock investments.

    It's simple...

    Because blue-chips are all well-established companies with stable earnings and no extensive liabilities.
    • They are well-managed and have consistently performed across business cycles
    • They have the resources to not only weather the downturns and disturbances, but also emerge stronger from them
    • Long-term prospects for blue-chips are outstanding
    So the risk associated with blue-chips is very low, and you can be assured of steady returns and dividends from them year after year.

    And then, there's also a strong belief among investors that blue-chips are virtually immune to any and all kinds of problems.

    That's not really the case.

    The truth actually is that...

    Even Blue-Chip Stocks Go Through Hardships
    From Time To Time

    The reasons could be anything like...
    • Change in the company's top management
    • Some new initiatives started by the company turning out to be failures
    • Fall in demand for the company's product in the market
    • Bad economy
    • ...or anything else for that matter
    When things like that happen, the demand for the blue-chip stock falls temporarily - bringing its price down and making it available to you at a discount! This is when you need to act fast and grab the stock.

    If you manage to do that, you can assure yourself of big returns from blue-chip stocks also.

    Let me give you just two more examples...

    An impressive 45% return on the country's
    Top Public Sector Bank

    Yes, I'm talking about SBI...

    SBI

    We recommended this banking behemoth at a time when some of the largest banking companies globally had succumbed to the credit crisis or had been at the mercy of bailouts, making the case for large institutions weak.

    However, SBI had more to it than its limited exposure to global markets, mark to market losses on its investment book and possibility of default in mortgage loans.

    It had 16% share of the Indian banking system's deposits and advances and was the only one to grow its share in 1HFY09 with the help of its franchise that is the largest in the sector.

    Thus, when investors failed to realize this and dumped the stock, we whole heartedly recommended it to our subscribers... making them a party to an impressive 45% gains.

    81% in 6 months from
    a Cement major. . .

    SBI

    Agreed that the cement sector is going to witness some sort of capacity glut in the medium term.

    Also agreed that there was so much fear all around, especially towards the end of 2008 that it was difficult to believe that infrastructure and construction activity will not go into a sound sleep for quite some time to come.

    But if valuations get beaten down to levels when cement capacities are available at half the replacement cost - especially those of a strong player like Ultra Tech in an economy like India where growth will suffer cyclical but not structural blips - such opportunities need to be seized and seized big time.

    This is exactly what we did and the 81% returns since our recommendation eventually proved us right.

    Hence the secret to getting rich in the stock market SAFELY is...

    Buying good companies in bad times
    And making huge returns on them when they
    Grow rapidly in a few years

    If you've been in the stock market long enough, you'll know about the fascination investors had for small caps until about 18 months ago when the bull market was at its peak.

    At that time, spending as much money as you can on Small Caps was a fad among investors.

    Many "Small Cap Millionaires" sprung up quickly as a result of that.

    However, when the stock market crashed in January 08, many of these small companies got wiped out completely.

    Suddenly, nobody was talking about small caps so much anymore.

    Well, that's the thing about all the companies that are not Blue-chip -- one day they're there, and the next...

    Of course, no investment is 100% guaranteed. Not even Blue-chips!

    But with the BIG companies, you can be confident that they will not disappear overnight and take your investments with them.

    I don't know about you, but I'd prefer grabbing a safe 100% return in 3-4 years anytime...

    Rather than invest my money on some hyped-up small company, never knowing when my gains would be wiped out.

    But Then Again, Not Every Blue-Chip Stock
    Can Give You Amazing Returns

    You need to know exactly which big companies are likely to make bigger returns for you and of course, when is the right time to buy them.

    And this is where Equitymaster comes in...

    You see, we've got this Premium research service called StockSelect.

    Simply stated, StockSelect is our Large Cap stock recommendation service.

    If you're looking at building a portfolio of blue-chip stocks that will deliver steady returns over the long term, then this is the service you need to be subscribed to.
    StockSelect tells you which big companies are a "must-have" for your portfolio... and more importantly, it notifies you as and when they're available at attractive valuations.

    It works on a simple principle - buying great companies at bargain prices and making staggering returns on them when the company grows rapidly in a few years.

    Consider GAIL for example...

    GAIL

    GAIL is to India's gas transportation sector what SBI is to the Indian banking system... and infact, a little more.

    When we recommended the stock, it was yet another compelling growth story available at great valuations.

    And the stock has not disappointed, rising an impressive 40% from the time we recommended the stock in January 2009.

    Not a bad return at all in just 5 months.

    Please understand that we make all our predictions with a 3-4 year period in mind.

    However, in some situations, the markets get into action and bump up the stock price faster than expected.

    In other cases, a market crash leads to the stock price falling rapidly.

    So our advice to you is that you ignore the near-term variations and focus only on what you make in 3-4 years time.

    Great companies always recover when the storm passes.

    So if you buy the blue-chip stocks at the right time, you could easily make attractive returns over 3-4 years.

    And here's what all you get subscribing to StockSelect. . .

    52 Blue-chip Recommendations. . .


    Every Saturday, we'll send you a StockSelect report recommending a Buy/Hold/Sell on one large cap company.

    In this report, we will provide you detailed and extensive analysis of the company along with our expert opinions.

    The important things to note here are...
    • All our recommendations are supported by thorough research - we list out the reasons to buy and also the investment concerns that we foresee
    • We travel far and wide to meet companies before we put out reports on them
    • For each stock, we clearly state the target price and also the time horizon for achieving the same
    Take Marico for instance...

    Marico

    Marico is yet another example of a good quality stock getting beaten down due to the overall negative sentiment prevailing in the stock market.

    Not only did the valuations start looking attractive when they suffered a hammering but the company's business model was also undergoing a transformation for the better.

    From just coconut oils, the company had extended its portfolio to cover the entire gamut of hair care segments, edible oils, jams, soaps and skin products, growing its topline at a compounded annual rate of 20% over the past 5 years.

    The remarkable aspect of the company's performance was its dominant market share in each of the categories it operated in.

    You tell me - how can one not scoop up such companies especially when the market has lost its rationality?

    Echoing our predictions, the stock has returned a cool 50% from the time we recommended it to our subscribers.

    Look...

    Even though large cap companies are a dime a dozen, it's still important to know which stocks are the right stocks and what is the right price to buy these stocks.

    StockSelect tells you just that!

    By subscribing to StockSelect, you'll be notified of 52 blue-chip Buy/Sell/Hold opportunities at the right time.

    You can then explore the opportunities further if you like, and pick a final list of blue-chip stocks to invest in.

    In addition to these, we also release special reports from time to time on attractive large caps opportunities (like the Tata Motors example we discussed above).

    Fast action takers will benefit from these reports also.

    Ongoing Research on
    The Companies Recommended. . .

    At the end of each quarter we review all the stocks that we recommended during the six month period prior to that.

    We provide subscribers our latest analysis on all those recommendations... and whether we maintain our views on them or have changed the same.

    We illustrate in detail our reasons for maintaining the stance or change in stance, and finally summarize all of those into a table as you can see below:

    Stoctselect Recommendations

    Apart from these quarterly reviews, another thing that forms part of the "ongoing coverage" is the Quarterly Result Analysis that we write for all companies under coverage... wherein we also mention whether the results are in line with our estimates or not, and whether we maintain our view on the stock or not.

    Given that the markets are likely to remain bumpy for at least another year, this kind of information can come in very handy.

    Here's what one subscriber had to say about our review reports...

    "I appreciate your dedication in giving periodic reviews and outlook/current recommendations. This is a stand out feature in your basket!"

    - Srinivasan S, an Equitymaster Subscriber

    S-Features

    These are articles and reports that are available to our premium subscribers only.

    We release over 800 of them every year.

    You might understand that there a lot of factors influencing the stock price, most of which need to be monitored regularly. So from time to time, we release instant reports and updates on various companies.

    These articles include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company and our personal views on it, and so on.

    This is all "unadulterated" information and it will serve as a valuable input for your investment decision.

    Portfolio Tracker

    The Portfolio Tracker is an online utility to help you track your equity and mutual fund investments!

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    The Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to StockSelect, you get it absolutely FREE.

    Free Access to Select Equitymaster Webinars

    We also conduct Equitymaster webinars from time to time with renowned Stock Market experts.
    • On November 7th, 2008 we conducted a webinar titled "How to Protect Your Wealth and Profit from the Global Crisis."
    • On January 12th, 2009 we conducted a webinar titled "An Interaction with Ramesh Damani."
    • And on March 16th, 2009 we conducted another webinar titled "Where are the stock markets headed?"
    The guest speaker on two of these occasions was Ajit Dayal, the founder of Equitymaster and the Mumbai-based investment advisory firm, Quantum Advisors.

    During these webinars, he talked about the likely route the markets could take in the years to come, and the course of action YOU need to take to survive and profit in these tough times.

    In the third case the guest speaker was Ramesh Damani, a renowned investor and a member of the BSE. During the webinar he revealed the sector that could lead the next market rally, and much more.

    By subscribing to StockSelect, you get to attend these select events for FREE (whereas other non-members have to pay Rs 1,990 for each of the Webinars).

    Here's what one subscriber had to say about our webinar:

    "It was a pleasure to listen to Ajit. Great interview. Excellent webinar! Keep it up"

    -- Dr Vijay Barve, an Equitymaster Subscriber

    Our Two Popular Investment Guides

    1) "The most profitable approach to stock picking" guide in which you will find approaches to stock investing which have worked very well.

    We have tested these approaches ourselves and come up with stunning results!

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    The bottomline is that this guide will be of great help to you in your quest to identify profitable investment opportunities!

    2) Our second investment guide titled "Invest like Warren Buffett"

    Warren Buffett is someone who has delivered fantastic returns over not just a few years, but over decades.

    The book value of his company, Berkshire Hathaway, has grown by over 20.3% per annum over the last 44 years... which in terms of absolute returns works out to a staggering 362,319%!

    Through this guide, we're providing you a compilation of his best teachings that could go a long way in helping you take smarter and sensible investment decisions.

    The 5 Minute WrapUp

    You'll also get "The 5 Minute WrapUp" -- our daily investment news digest in which we discuss that day's major happenings and how they could affect investments.

    As one avid reader of The 5 Minute WrapUp put it - "Your reviews are both well studied and informative and I don't miss a day's wrap up!"

    Another wrote in to us saying - "This newsletter reduces my efforts of tracking info through reading Economic Times."

    And yet another said - "The selection of news is so perfect that it is extremely relevant for anybody from an analyst to a common man on the street."

    If you want to stay up-to-date with the daily happenings in the investment world, you cannot afford to miss "The 5 Minute WrapUp"

    The 5 Minute WrapUp is delivered to your email inbox before the end of your workday, everyday!

    So to summarize, here's all you get by signing up to StockSelect...
    • 52 Blue-chip recommendations

    • Special Reports from time to time

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    • S Features

    • Portfolio Tracker

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    • Our Two Popular Investment Guides - "Invest like Warren Buffett" & "Most Profitable Approach to Stock Investing"

    • The 5 Minute WrapUp

    And Now, The Main Thing. . .

    As of July 1st, 2009 the price of StockSelect is Rs 5,000 for 1 year.

    Why the increase, you ask?

    First off...and this is what matters most...

    We have delivered!

    Over 80% of all our "Buy/Hold" large cap recommendations from the period 2003 to 2007 have met their targets.

    For most companies, this by itself would make a good enough reason to increase the price.

    But in our case the truth is that we've constantly improved the quality of service we provide over the years but kept the subscription price the same.

    Now we're expanding our company and hiring more employees to provide better service for YOU... so we need more funds... and hence the price increase.

    In addition, we're also offering a lot more than stock recommendations now (as you have already seen above).

    So that's why we decided to increase the price to Rs 5,000.

    But here's the Kicker. . .

    Because we felt that we didn't give you a fair warning before increasing the price, we're giving you ONE LAST CHANCE to subscribe to StockSelect at the old price.

    Yes!

    For a few more days, you can sign up to StockSelect at the old price of Rs 2,000 for 1 year.

    If you were "thinking" about subscribing to StockSelect but kept delaying for some reason, now is the time to do it... because if you don't, you'll have to pay more than 2 times the price to sign up later.

    Moreover, this is the best time to be subscribing to a Blue-chip service.

    The markets are up 80% in the last 3 months, and many people believe this could be the beginning of another bull market.

    What better time to buy Blue-chip stocks than at the beginning of a bull market.

    And there's also no risk. . .

    If you make use of this offer, you can subscribe to StockSelect at highly discounted prices and "test drive" the service for 30 days.

    During this one month, you'll get 4 current issues of StockSelect... plus access to archives of all the previous issues.

    After going through the current and past issues, you should have a good idea of whether StockSelect is for you.

    If you don't like what you see, or you feel that StockSelect is not for you, just let us know before the 31st day and we will refund the entire price - no questions asked.

    However, please keep in mind that this offer will be available for limited time only.

    You can subscribe to StockSelect even 3 months, 6 months or a year from now also. But then, you'll have missed out on the opportunity to cash in on the DISCOUNTED RATES.

    So act now... get that discount... and start benefiting from lucrative large cap opportunities immediately.

    Plus, you could also win a Tata Nano
    if you subscribe to StockSelect right away. . .

    We have purchased a Tata Nano to give away to one of our subscribers. The delivery of the vehicle will be between Oct-Dec 2009.

    As soon as we receive the car, we will conduct a lucky draw to finalize the winner. We encourage you to read the Terms of Use of the Offer.

    Could that winner be you?

    May be, may be not!

    But to give yourself a chance, you have to become a premium subscriber of Equitymaster first.

    And for that, you must sign up to StockSelect now.

    So you now have two very good reasons to subscribe to StockSelect RIGHT AWAY:
    1. To make use of this LAST OPPORTUNITY to sign up at the old price of Rs 2,000
    2. To become eligible to win a Tata Nano (see terms of offer)
    Why delay more?

    This offer will not stay open for ever and we truly don't want you to miss out on it.

    Click here to subscribe.

     

    Warm Regards,

    Rahul Goel
    Chief Executive Officer
    Equitymaster.com
    June, 2009

    P.S.: After this, StockSelect will NEVER be available for Rs 2,000 again. Plus, there's also the opportunity to win a Tata Nano. So I suggest you wisely make use of this limited-time offer.

    P.P.S.: Try StockSelect for 30 days without risk. If you don't like it, cancel your subscription before the 31st day and we'll refund the entire subscription fee. Fair enough?

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    Thursday, July 23, 2009

    Daily Real Estate News

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    July 23, 2009

    Advertisement
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    NAR: Existing-Home Sales Rise Again
    June sales were up 3.6 percent, the third-straight monthly increase, which eased inventory levels. Still, new appraisal standards remain an impediment in some transactions.
    Read more >
    Home Prices Increase in 22 Metro Areas
    Report from Radar Logic show that from April to May, home prices rose an average of 2.1 percent, suggesting recovery could be at hand.
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    Economist Sees Signs of Housing Stabilization
    Tom Lawler points out that as homes lose "stickiness," prices will bottom out sooner.
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    For Some, Renting Still Makes More Sense
    Despite the enticements, debt-laden young buyers without solid jobs should hold off on home on purchases, financial advisors say.
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    Bake Sale Helps Mom Save Her Home
    A N.J. mother of three sold 500 home-baked apple cakes to make her overdue mortgage payments and become eligible for a loan modification.
    Read more >
    No Winners in Watergate Auction
    The Washington D.C. hotel next to infamous office complex went unsold at auction. Now, it faces an uncertain future.
    Read more >

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    Wednesday, July 22, 2009

    Property News Update from ludlowthompson.com: Bricks and Mortar Seems Better than Banks

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    London Property News
    Property market news, tips and crazy stories
    W/C 20th July 2009
    ARLA's Second Quarter Review suggests investors are putting their money into Buy-to-Lets over banks.
    Great Expectations: housing market recovery
    Sellers are drawn back to the property market as sources say the worst of the slump is over for now.
    Attractive mortgages could cost you dearly
    Industry commentators warn that bargain hunters should beware of some new fixed-rate mortgage options.
    Tenant rental arrears recover from January dip
    Rent arrears on buy-to-let properties are now improving after peaking in January says ludlowthompson research.
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    Beware, Big Brother-Style with Surerent
    Surerent name and shame on-line scheme blacklists tenants who fail to pay rent, for other landlords to see.
    Does your household dog have hidden talents?
    With another summer upon us, what better way to spend the long evenings reading with: your dog.
    Graduates: documents needed for renting
    To move quickly when you find the perfect place to rent, here's how graduate tenants can get prepared.
    Other Stories:
    Mind the gap: House Asking and Sales prices get closer 15th Jul 2009
    ludlowthompson run fast for Centrepoint charity 15th Jul 2009
    Make a profit from your home's energy usage 15th Jul 2009
    Tax dodging landlords run out of places to hide 15th Jul 2009
    Buy-to-let property of the week: ��244,995, 7.3% GY 15th Jul 2009
    Tenant Sharers List: Graduate Special 15th Jul 2009
    Mattresses become the new bank of choice 15th Jul 2009
    Selling property ��� Market update July 2009 7th Jul 2009
    New mortgages for house buyers: a ray of hope 7th Jul 2009
    Student university applications rise by 8% 6th Jul 2009
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    Last Opportunity to Register for the RCA's Upcoming Webinars

    RCA Education Connection

     

    If you are looking for affordable commercial education then register today for one of the RCA's upcoming webinars. On July 23 and 24, the RCA in partnership with Top Dogs is offering two webinars at a deeply discounted rate of $49 per session. The two hour sessions are regularly priced at $89, but if you use one of the following discount codes fhosuddnkr or rihequpimu, you will receive an immediate $40 discount. The RCA/Top Dogs webinars will give you the opportunity to learn from Peter Droubay and Bob McComb, the co-creators of the Top Dogs commercial real estate training programs. On August 12, the RCA is offering a FREE one hour webinar featuring Eric Boles, a 2009 RCA Signature Series speaker.



    The July 23 webinar "Property Valuation: How to Value Commercial Property" is designed to teach a step by step process for conducting outstanding comparative market analysis within the commercial markets. The July 24 webinar "The Most Under-Utilized Strategy for Generating Leads and Increasing Client Loyalty" is designed to give attendees a step-by-step process for employing one of the most powerful marketing strategies available--public speaking. The August 12 webinar "Momentum Changers" will take a look at how you can change your momentum when you are fearful or in self imposed ruts. Learn some of those "game changing" things you can do to break the cycle and get to "Next Level Living" both personally and professionally.

     

    Webinar Session Description and Registration:

    July 23: "Property Valuation: How to Value Commercial Property" (beginner level)

    Webinar Session Description and Registration:

    July 24: "The Most Under-Utilized Strategy for Generating Leads and Increasing Client Loyalty" (experienced level)
    Webinar Session Description and Registration: August 12: "Momentum Changers" (all levels)


    All sessions are first come, first-served and limited to 200 attendees. Visit the RCA Education web page to learn more about the education resources available to you from the RCA and commercial affiliates. For Top Dogs webinar registration questions, contact Top Dogs at 888-894-5772. For general questions, contact the RCA at 800-874-6500.
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    Real Estate Insights -- July 2009

    REI logo
    Feature image Appraising the Situation
    Home sales are up, housing affordability at record highs, mortgage rates historically low. Pending sales, too, rose – for a fourth consecutive month. So what is holding back a full-fledged housing recovery? In his commentary this month, NAR Chief Economist Lawrence Yun discusses one of the issues – new appraisal rules – that could be causing some home sales transactions to take longer than usual or to even fall through.
    Read more >


    “Confidentially” Speaking
    The most recent REALTORS® Confidence Index suggests that the future for single-family homes looks far better than a year ago. And in spite of the lingering recession, buyer traffic is up. Wannasiri Chompoopet, Manager of Housing Statistics, gives us the latest view from our monthly panel of Realtors®.
    Read more >


    Jumbo Loans
    While interest rates on conforming loans remain historically low, rates on jumbo loans for high-end homes – as well as the loan terms such as downpayments – are higher and more stringent. In addition, fewer lenders are providing jumbo loans. Our In Focus column this month takes a look at changes in the jumbo loan market, and the impact those changes can have on housing and the economy. Arun Barman reports.
    Read more >




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    Real Estate Insights

    Lawrence Yun, NAR Chief Economist
    Paul Bishop, Managing Director, NAR Research
    Jed Smith, Managing Director, Quantitative Research

    Arun Barman, Research Economist
    Wannasiri Chompoopet, Manager of Housing Statistics
    Keunwon Chung, Data Research Analyst
    Stephanie Davis, Office Manager
    Thomas J. Doyle, Research Marketing Manager
    Meredith Dunn, Communications Representative
    Ken Fears,Manager, Regional Economics
    Danielle Hale, Research Economist
    Michael Hyman, Research Assistant
    Selma Lewis, Research Economist
    George Ratiu, Research Economist
    Gregg Stratton, Research Economist
    Sophia Stuart, Marketing Associate
    Caroline Van Hollen, Senior Research Coordinator

    Copyright © 2009 NATIONAL ASSOCIATION OF REALTORS®. Reproduction or reprinting in any form is prohibited without written permission. Editorial questions and requests to reprint articles should be directed to Meredith Dunn via e-mail at data@realtors.org.

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    On-line Tools from NAR Research
    NAR Research has many on-line tools that help you stay informed about the latest developments in the economy and real estate. Learn more >

    Daily Real Estate News

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    July 22, 2009

    Advertisement
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    Fed Chair Says Foreclosures Could Still Rise
    Ben Bernanke says he does not foresee a major inflation risk but rising unemployment will keep pressure on foreclosure rates.
    Read more >
    Mortgage Applications Rise Slightly
    Though interest rates were up last week, loan volume jumped 2.8 percent, according to the Mortgage Bankers Association.
    Read more >
    NAR Prevails So Far on Energy Bill
    The association worked hard to keep real estate-related requirements out of the climate change legislation. Now attention is turning toward the Senate.
    Read more >
    Survey: Most Banks Tighten Lending Standards
    Though no institutions eased mortgage requirements, more than one-fourth of banks left them unchanged for the year ending in March, according to the U.S. Office of the Comptroller of the Currency.
    Read more >
    The Cheapest Metro Areas to Live
    Spokane, Wash., and Ann Arbor, Mich., are among the best values. Find out what other places made the Forbes magazine list.
    Read more >
    Best Place to Age Is at Home
    It is cheaper for older people to live out their lives in their own homes raher than move to a residential center, according to the Home Safety Council.
    Read more >

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    Video: Latest Housing Report From NAR Chief Economist
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    Be a "Smuggler" or buy Quantum Gold Fund!

    Please CLICK HERE if you are unable to view this mailer correctly
    The Golden Truth: Be a Smuggler or buy Quantum Gold Fund!

    Be a "Smuggler" or buy Quantum Gold Fund!

    The Finance Minister delivered what could be a called as an "aam aadmi" budget. The stock markets were disappointed with the budget as it did not include big announcements to further the "lets buy now" sentiment.
    While it was initially a "no-masala" budget for equity markets (of course, since budget day stock markets have found a lot to be happy about!), it remains a sour budget for gold investors.

    Taxing gold.
    The finance bill doubled the import duty on gold from Rs. 100 per 10 gms to Rs. 200 per 10 gms. The rationale for the same was that these rates of import duty were fixed in 2004 and continued even though the price of gold has increased substantially. The import duty of Rs. 100 per 10 grams was applicable since 2004 when the price of gold was about Rs. 5,800 per 10 gms. The duty amounted to 1.7% of the gold price in 2004.

    Since then, prices have increased by 250% to the Rs. 14,500 levels. To adjust this levy in line with the increase in the price of gold, the Finance Minister has reset the levy to Rs. 200 per 10 gms. The duty now amounts to 1.4% of the current price of gold.

    Some have suggested that the increase in the levy was also to make up for the shortfall in tax collections - India's import of gold have nearly halved this year. So, doubling of import duty will keep the government's revenue intact.

    Most of the gold consumed in India is imported from overseas. Naturally, an increase in customs duty would lead to increase in gold prices to that extent as customs duty is a pass through and gets added to derive the domestic price. This increase in duty comes at a time when the "high" price of gold (we think it could go "higher") are already pinching consumer pockets, thereby limiting their buying capacity. Gold prices rose by Rs. 100 per 10 gram in the bullion market immediately after the announcement of the increase in the tax.

    Graph 1: Spread between International gold price and domestic price of gold
    QuantumAMC_Be_a_Smuggler_or_buy _Quantum_Gold_Fund
    Source: Quantum AMC estimates using London AM Fix, RBI Reference rate and various applicable duties and taxes for arriving at gold price in Mumbai

    Impact on Investors:
    The increase in the gold tax has an immediate impact on:
    1) Existing investors of gold: They will benefit as the value of their gold holdings has increased by Rs. 103 per 10 grams or by Rs. 5.15 per half gram. An increase of nearly 0.7% of the current gold price;
    2) Those investors who wish to buy gold: They will have to pay a higher price for the gold to the extent of increase in the duty.

    With these tax changes, is the government encouraging you to be a smuggler?
    This import duty adds an additional levy of 0.7% of the current market value. Adding this with other existing duties and levies, the difference in price between the internationally sourced gold and Indian domestic gold widens to nearly 3%. (see Graph 1). This means that the Indian consumer is paying 3% more than the price of gold in the international markets.

    The World Gold Council has cautioned that this higher spread might lead to an increase in gold smuggling. Investors will buy gold through their other channels and not through the official banking channels. While 3% is "only" 3%, it is a lot in the extremely price sensitive Indian gold market.

    Ajay Mitra, Managing Director Indian Subcontinent, World Gold Council, quoted in the press, said: "World Gold Council actively lobbied the Indian Central Bank and Ministries of Finance and Commerce in the late 1990's to facilitate the free flow of gold into the country and in making a case for the rationalisation of import duties. The stabilisation of import duties enabled the secure development and growth of the Indian market through official channels. We hope that this higher duty rate does not add to significant trading through non-official channels."

    Mr. Dharmesh Sodah, director at WGC also said "There is evidence from other key gold markets around the world that higher taxation regimes can lead to the trading of gold along non-official channels."

    Will potential investors "smuggle" gold or seek other avenues of gold investment?
    Indian investors can invest abroad legally upto a limit of $200,000 per annum.

    Through this provision, investors can invest in global gold ETFs like GLD, IAU, and avoid this India-specific incidence of high import duty and other taxes. If an Indian was to remit USD 200,000 every year and use all of it to buy gold, in theory he would "save" USD 6,000 (about 3%) for all the gold purchased. Not bad.

    And there is nothing illegal about it.
    This is not "smuggling" in the true sense of the word - this is a legal avenue to buy a commodity cheaper in international markets compared to its price in the local markets.

    But, will this be a wise decision?
    While investors will definitely save on the duties and taxes on buying gold in India, they may pay a lot of additional charges involved in investing overseas. There are account opening charges, foreign exchange markups, money transfer charges and high brokerage costs.

    Table: Estimate of charges
    Expense Estimate
    Account opening charges $25-50
    Foreign currency Mark ups 1.5 - 3%
    Brokerage 0.5 - 0.8%
    Money Transfer (Inward / Outward) $ 10-30
    Source: Industry

    The above charges are pure expenses and will not be recovered even on selling the investments. These are like sunk costs.

    Although the increased customs duty makes purchasing gold in India a little expensive, investors should remember that they could recover these same duties when the sell their gold investments in the future. A new gold buyer will have to pay these same taxes to the seller.
    Investing in gold ETFs listed outside India could become an expensive proposition because it involves high transaction costs which are not recoverable.

    Also, many gold ETFs listed outside India may not insure the gold they hold. In fact they may not hold all the gold in "physical" format in a bank vault.

    In light of the above arguments and the high costs associated with investing in gold ETFs abroad, it would be a prudent decision to invest in gold ETFs like the Quantum Gold ETF.

    Invest in the Quantum Gold Fund (ETF)

    • Each unit backed by physical gold and not receivables. No units are created until physical gold backing these units is received.

    • Gold backing each unit is of 0.995 purity from LBMA accredited refiners only.

    • Gold is held in secured vaults.

    • Gold is completely insured and includes terrorism insurance.

    • Gold is regularly audited and physically verified.

    Don't get worried about the small increase in duties as it will only marginally increase your buying price.
    Look at the long term opportunity of investing in gold to benefit from a possible increase in the price of gold in these uncertain times.
    So, don't think about "smuggling" gold, consider buying Quantum Gold ETF instead.

    Buy Your Portfolio Insurance... Buy Gold... Now.

    Click here to invest in the Quantum Gold Fund ETF
    A Cheaper and Convenient way of owning High Quality Gold, Buy Now!

    To invest, call your broker and buy Quantum Gold Fund (ETF) on the NSE
    Code -
    (QGOLDHALF) or log on to your online trading account and place the order. Now!

    ADVANTAGES OF QUANTUM GOLD FUND

    • One unit equals approximately half gram Gold
    • Backed by Gold of 0.995 fineness, which is secured and insured
    • Save on making charges and premiums
    • Low recurring expenses
    • No Wealth Tax and Concessional Long Term Capital Gains Tax after 1 year

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    Tuesday, July 21, 2009

    Daily Real Estate News

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    July 21, 2009

    Advertisement
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    Growth Leader from Market Leader gives you a steady stream of leads, plus a CRM that can help you close more deals. Discover how Growth Leader puts you in total control.

    Investors Drive Foreclose Prices Up
    With deep pockets and the ability to pay with cash, investors are bidding up the price of foreclosures as much as thousands over the initial asking price.
    Read more >
    FHA Loans Set Record
    The Federal Housing Administration guaranteed 186,000 mortgages in June, a record number in their 75-year history.
    Read more >
    Lease-Purchases on the Rise
    For buyers who can't afford a mortgage and motivated sellers, a lease-purchase agreement can be attractive option.
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    Experts Say Now is the Time to Buy
    Financial experts say prices have fallen to a once-in-a-lifetime level and now's the time to buy.
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    House Extends High Limits for Federal Loans
    The House Appropriations Committee authorized continuing the $729,750 loan limits for Fannie, Freddie, and FHA until September 2010.
    Read more >
    Virtual Staging Spark Home Sales
    Practitioners find success in enhancing vacant listings with virtually-staged photographs.
    Read more >

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    Google's New Tools: Free, But Are They Worth It?
    Video: Latest Housing Report From NAR Chief Economist
    Could Your Listing Have Once Been a Meth Lab? 5 Warning Signs
    Master Social Media With These Webinars
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    America Property Alerts, 21 July 2009

    America Property Alerts

    21 July 2009

    Dear APA Friend,

    Nationwide IHS Global Insight – you can Google or Yahoo for a mass of detailed press releases and stats – offers a useful insight into the US market for anyone looking to buy in at the bottom. They've recently been highlighting those markets which they consider to be most undervalued and offer Vero Beach and Las Vegas, at 40 and 41 per cent respectively, as their most undervalued markets. If you're thinking of making a long-term investment, some pundits would suggest that Vero Beach and Las Vegas are worth a look.

    Laura at britishcolumbia-properties.com - those of you who subscribe to IPA will know Laura – has sent me some stats on the property market in Canada. I can send these details over on request, although we will probably run them into a market summary in the IPA newsletter out next week. Let's cut to the chase. Toronto and Vancouver are leading the way in the property sector out in Canada right now, with sales last month among the highest in history in both cities. Vancouver sales are up over 75 per cent from last year and close to reaching June 2005's 4,333 record-breaking sales.

    Why buy in Vancouver? Declining inventory levels and affordable property are heating up the market and attracting buyers who now have a renewed confidence in the market as prices hold steady. Balanced market conditions are stimulating activity and encouraging buyers to snap up properties which are still on average considerably lower than they were this time a year ago, coupled with low interest rates. We've long tipped Vancouver as one to watch. Pent-up demand is building and, along with the upcoming Olympics and completion of the Canada Line this autumn, it is increasingly looking full of promise. We have an article on Vancouver on request.

    If you are considering buying in Canada, survivalbooks.net have a great book 'Culture Wise Canada' which is worth a read, helping you adjust to life there, and provides you with a good understanding of how things work. Download a free sample at…
    http://www.survivalbooks.net/product_info.php?products_id=95&osCsid=oha44po5kmr7015v9cqi6smos5

    Finally, over at IPA this week, we have a deal where you can invest in the new Wyndham-run project in Panama - the development is situated in the extreme South West of the Bay of Panama on the Amador Causeway. It is 10 minutes from the banking centre, the business heart of Panama City and 15 minutes from the John Hopkins hospital. The causeway offers 5 kilometres of road joining 3 Islands, Naos, Perico and Flamenco. The project is situated on the Perico Island. Las Brisas offers uninterrupted views of Panama skyline and the South entrance to the Panama Canal. I have a brochure which is a little too large to attach via this ISP service - email me back if you are interested and I will send it to you via my AOL account. It's clearly a sales pitch but, if you are interested in Panama generally, has some useful background information in there as well.

    Good Wishes,

    Iain

    Iain Maitland
    Editor, America Property Alerts

    PS. Looking to let your holiday property? Holiday Lettings receives 65,000 unique visits per day and can significantly increase enquiries and bookings for you. Sign up to www.holidaylettings.co.uk and quote 45984 during the sign up process and you'll get 15 months advertising for the price of 12 months!

    America Property Alerts provides free e-alerts on American property news for subscribed members. You can subscribe only by signing up at the website at www.americapropertyalerts.co.uk. You can unsubscribe by clicking the link at the bottom of this e-mail.

    News provided by these free e-alerts is for general information only. Subscribers should not rely on this when making decisions. You are strongly advised to take independent professional advice before investing. America Property Alerts and its staff do not accept any liability for losses suffered by subscribers.

    You can write to America Property Alerts at Providence House, Little Sampford, Essex CB10 2QQ. You can email the editor, Iain Maitland, at Imaitland@aol.com.


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    Monday, July 20, 2009

    Daily Real Estate News

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    July 20, 2009

    Advertisement
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    Housing Experts: Now Is a Perfect Time to Buy
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    Read more >
    When Divorce Interferes in a Transaction
    A real estate practitioner's job can become a challenge when dealing with divorced clients and trying to keep both sides happy.
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    Real Estate Pro Killed in Foreclosed Home
    A real estate practitioner recently showing a foreclosed home in a community outside Los Angeles found another real estate professional killed in the home.
    Read more >
    Revitalization Project Begins in New Orleans
    A new $50-million housing complex is expected to give a boost to areas devastated by Hurricane Katrina that are now being plagued with high crime.
    Read more >
    Rapper 50 Cent Cuts Sale Price of Mansion
    Rapper 50 Cent has scaled back the price of his 19-bedroom Connecticut mega-mansion to $10.9 million.
    Read more >
    Two New Jersey Real Estate Giants Merge
    Two of New Jersey's largest real estate firms, Coldwell Banker and Burgdorff ERA, are being merged by their parent company, NRT, in an effort to trim costs.
    Read more >

    Advertisement
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    Google's New Tools: Free, But Are They Worth It?
    Video: Latest Housing Report From NAR Chief Economist
    Could Your Listing Have Once Been a Meth Lab? 5 Warning Signs
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    The Washington Report - July 20, 2009


    If you’re having trouble reading this e-mail, click here.
    Previous Issues

    In This Issue:

    Business Report
    FinCEN Publishes ANPR Directed at Non-Bank Residential Mortgage Lenders and Originators on Money Laundering and Suspicious Activity Reporting

    House Committees Consider House Health Reform Legislation

    Conventional Residential Lending Report
    Freddie Mac Stresses Appraisers Knowledge of Local Areas in Recent Bulletin

    Environment Report
    NAR Testifies on Green Building Incentives

    Federal Tax Report
    Ways and Means Adopts Surtax

    Housing Report
    Dave Stevens Sworn in as FHA Commissioner

    The Impact of the Home Valuation Code of Conduct

    NAR Submits Comment Letter to FTC on Loan Modification and Foreclosure Relief Agencies


    Business Report

    FinCEN Publishes ANPR Directed at Non-Bank Residential Mortgage Lenders and Originators on Money Laundering and Suspicious Activity Reporting
    On July 15, 2009, Treasury's Financial Crimes Enforcement Network (FinCEN) released an advanced notice of proposed rulemaking: Anti-Money Laundering Program (AML) and Suspicious Activity Report (SAR) Requirements for Non-Bank Residential Mortgage Lenders and Originators. FinCEN seeks comments on several questions, including: 1. FinCEN's incremental approach to regulating residential mortgage lending or origination; 2. definitions of those engaged in such activities; 3. money laundering risks posed by non-bank residential mortgage lenders and originators; 4. how AML programs should be structured; 5. SAR reporting; and 6. whether any non-bank residential mortgage lenders and originators should be exempted from AML/SAR reporting requirements.

    FinCEN press release >
    FinCEN's advanced notice of proposed rulemaking >

    Contacts: Marcia Salkin, 202-383-1092

    Contacts: 202-383-1090

    Contacts: Scott Rinn, 202-383-7508


    House Committees Consider House Health Reform Legislation
    The House began consideration of its Tri-Committee health reform bil, HR 3200 on Tuesday. By week's end, the Ways and Means and Education and Labor Committees completed action on their portions of the bill — the Ways and Means Committee by a vote of 23-18 and the Education and Labor Committee by a vote of 26-22. The House Energy and Commerce Committee is expected to complete its mark up next week. House leadership are hopeful to bring a complete bill to the floor the last week in July, but that could easily spill into September after the August recess. NAR has no position on the House bill at this time as the bill's provisions are in a state of flux.

    In the Senate the health committee approved its version Wednesday on a party-line vote of 13-10. Senate Finance is expected to introduce and mark up its version next week. However, it's highly unlikely that the Senate will have time before it breaks for its August recess for a combined Health Committee/Finance Committee floor vote. Thus, a Senate floor vote could spill over into September.

    Against this backdrop, NAR submitted a letter to the three House committees commenting on the various components of the House bill. Staff is currently analyzing the mammoth bills and consulting with the members of NAR's Business Issues Committee and Federal Tax Policy Committee for specific policy input.

    Read NAR's Letter to the Three House Committees >
    Visit www.realtor.org/healthreform >

    Contacts: Marcia Salkin, 202-383-1092

    Contacts: Ken Wingert, 202-383-1196

    Contacts: Scott Rinn, 202-383-7508


    Conventional Residential Lending Report

    Freddie Mac Stresses Appraisers Knowledge of Local Areas in Recent Bulletin
    On July 10, Freddie Mac released Bulletin 2009-18 to sellers and servicers. The bulletin addresses appraisals and underwriting. Regarding appraisals, the bulletin focuses on qualified appraisers, credible appraisers, comparable sales, and monitory appraisal quality. Freddie Mac reminds sellers that they must be in compliance with the Home Valuation Code of Conduct (HVCC).

    The guidance also reminds servicers that appraisers must be familiar with local markets where the property is located, must be competent to appraise the subject property type, and must have access to data needed to create a credible appraisal. NAR has strongly emphasized the issue of out of area appraisers in recent meetings and conversations with the Federal Housing Finance Agency (FHFA) and both government sponsored enterprises, Fannie Mae and Freddie Mac.

    Bulletin 2009-18 >

    Contacts: Jeff Lischer, 202-383-1117

    Contacts: Tony Hutchinson, 202-383-1120


    Environment Report

    NAR Testifies on Green Building Incentives
    NAR Treasurer Jim Helsel testified at a House Transportation & Infrastructure subcommittee hearing on the benefits of green buildings. Because of its LEED Silver certification, the privately-owned NAR building — the first in D.C. to achieve this — was cited by Chairman Norton (D-DC) as a benchmark by which to evaluate the Federal government's progress toward 'greening' its buildings. As chair of the NAR committee that oversaw the NAR building's construction, Mr. Helsel testified on the building's many environmental and community benefits as well as the process by which the committee acheived LEED certification. He also reinforced NAR's support for funding for green public buildings included in The American Recovery and Reinvestment Act (ARRA; Public Law #115-5, as well as other ARRA provisions for energy efficiency tax credits, block grants and weatherization assistance for modest-income families. These provisions are consistent with NAR policy, which favors incentives over mandates as the most effective way to improve the energy efficiency of the nation's commercial and residential buildings.

    Read the testimony >

    Contacts: Austin Perez, 202-383-1046

    Contacts: Russell Riggs, 202-383-1259

    Contacts: Helen Devlin, 202-383-7559


    Federal Tax Report

    Ways and Means Adopts Surtax
    The House Ways and Means Committee has approved the revenue portion of the House health care reform bill, H.R. 3200. The Committee vote was 23-18. Three Democrats joined all the Committee Republicans in voting against the package. (Democrats voting No were Messrs. Pomeroy [SD], Kind [WI] and Tanner [TN].) Nearly all of the new revenues are raised from a surtax that would apply to high income taxpayers. The proposed surtax would apply to adjusted gross income, which includes salaries, capital gains, dividends, Schedule C income (which is NET business income, not gross), taxable Social Security benefits, pension income — anything income item reflected on the front page of a Form 1040. Surtax is progressive, just like regular income tax. Its brackets are 1%, 1.5% and 5.4%, applied to income in excess of $350,000.

    View examples of the impact on a joint return >

    Contacts: Linda Goold, 202-383-1083


    Housing Report

    Dave Stevens Sworn in as FHA Commissioner
    On July 15, 2009, David H. Stevens, former President and Chief Operating Officer of the Long and Foster Companies, was sworn in as Assistant Secretary for Housing/Federal Housing Administration (FHA) Commissioner at the Department of Housing and Urban Development (HUD). President Obama's pick for the position, Mr. Stevens was strongly endorsed by NAR and will oversee HUD's major housing programs and the FHA mortgage insurance fund. He will also administer important regulatory programs such as RESPA.

    Secretary Donovan said "David Stevens is an innovator in the housing industry and he is the right person to lead FHA as it continues to help hundreds of thousands of families finance their homes with lower rates and better terms. David's knowledge in real estate, housing and the mortgage industry will help us overcome the current challenges we face, he will implement changes that protect FHA and will enhance its risk management capabilities to protect its future viability."

    Federal Housing Administration >
    US Department of Housing and Urban Development >

    Contacts: Jerome Nagy, 202-383-1233

    Contacts: Megan Booth, 202-383-1222


    The Impact of the Home Valuation Code of Conduct
    This month, NAR conducted a survey of its members to gauge the impact the Home Valuation Code of Conduct (HVCC) is having on the real estate industry. A preliminary analysis released on July 6, 2009, indicated that the implementation of the HVCC appears to be having adverse impacts on the housing markets.

    A more detailed analysis of the survey results confirms the early analysis. While 70 percent of appraisers report that turnaround times shortened after May 1, 2009, approximately 75 percent of Realtors® who responded report an increase in the length of time it takes to get the appraisal report, which is causing delays or cancelling deals. This may correspond to an increase in the number of appraisal requests coming from AMCs. NAR's appraiser members report that 40 percent of appraisal requests come from AMCs after May 1, 2009, compared with only 13 percent prior to May 1st. Both appraisers and Realtors® say this is having a negative impact on the quality of appraisals while the cost of an appraisal for the consumer is increasing.

    Visit www.realtor.org/hvcc >
    HVCC Research Commentary >

    Contacts: Jerome Nagy, 202-383-1233


    NAR Submits Comment Lett