Real Estate Information Archive

October 24, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

AT LAST !!! A GOVERNMENT PROGRAM TO HELP THE GOOD GUYS

The Wall Street Journal (Monday, Oct. 24, 2011), as well as Fox News and MSNBC describe an upcoming  major overhaul of an under-used mortgage-refinance program designed to help millions of Americans whose home values have tumbled. Federal regulators plan to announce the program today, in an effort to revive the stagnant housing market caused by a surfeit of homeowners who have been unable to re-finance their ‘underwater’ homes.

The overhaul will, among other things, let borrowers who have good credit and who have kept up their mortgage payments, refinance regardless of how far their homes have fallen in value.

The plan would streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as the homeowners are current on their mortgage payments.

Fannie Mae and Freddie Mac have also agreed to waive some fees which have made refinancing less attractive to many homeowners.

Officials at FHA, which regulates Fannie and Freddie, estimate that the plan will enable between 800,000 and 1,000,000 more borrowers to refinance at lower rates and thus, be able to continue to pay their mortgages.

CoreLogic, a company that tracks 85% of all mortgages, estimates that 20 million borrowers with equity in their homes could cut the interest rates on their homes by more than one percentage point, if they could refinance. That’s about a quarter of all the homeowners in the country.

Pricing details won’t be published until mid-November, and lenders could begin financing loans under the re-tooled program as soon as December 1, according to federal officials.

Bottom Line: If you bought your present home with a loan amount of $250,000 and an interest rate of 6.5%, this new program would allow you to re-finance to a rate of 4% and thus lower your monthly mortgage payment by approximately $520 per month. …Even if your home is currently ‘under water’.

If your present mortgage rate is 5.5%, your re-financed 4% loan would save you approximately $312 per month.

This new money in your pocket should now enable you to pay for Junior’s college, or, if you wish to upgrade to a better home and cash in on the current opportunities in the housing market, you could:
1. Re-finance your current home.
2. Rent it out (it’s a hot rental market right now), and
3. Buy that better residence at a very low price and a historically-low interest rate.  

Call us at 598-3200, or 800-677-MOVE (6683) to discuss what this new opportunity could mean to you

…… It’s nice to see the good guys win, for a change !!!

DOES RENTING OUT YOUR PRESENT HOME MAKE GOOD SENSE?

Daily real estate News (Tuesday, October 18, 2011) Identifies the rental market as housing’s bright spot.

“With rental demand rising and apartment economics improving, the multifamily sector is a positive signal for the U.S. housing industry,” writes Frank Nothaft, Freddie Mac’s Chief Economist, in the October 2011 U.S. Economic and housing market Outlook.
 
An increase of 1.4 million households moved into rental housing in the year ending June 2011--a 4 percent rise in the number of tenant households in one year alone, the Census Bureau reports. Meanwhile, the home ownership rate dropped about 1.5 percent over the past year.

Rents are rising at a 5.17 percent annual rate — up from last year’s 4.72 percent rate. If rents continue to grow at their current pace, they won’t be too far behind the record-high reached in 2000 of 6.18 percent, according to Axiometrics Inc.

The rental market has added about 1.4 million new renters this year, some of whom were former home owners who faced foreclosure or a short sale. Renters are increasingly showing an appetite for single-family homes owned by investors
.
As such, the number of investors in the market is growing. Investors make up anywhere between 20 and 40 percent of monthly existing home sales, according to home-sale data. With home prices and interest rates low, more aspiring investors are jumping in. Nearly 60 percent of investors in a recent survey by Realtor.com considered themselves newcomers to real estate investing.

The increase in rental demand is due partially to some households who may have faced a short sale or foreclosure of a home they owned. However, most of the rental demand is coming from young and newly formed households, who are postponing home ownership. The home ownership rate for household heads under 30 years of age has fallen the sharpest in recent years.

As demand increases, vacancy rates are dropping and rents are rising.

Keep in mind that rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long-term investors who take a long-term view.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss this great opportunity

RIDING THE INVESTOR WAVE
By Lawrence Yun, NAR Chief Economist
 
Interest rates continue at historic lows. Home prices in many markets are more affordable than ever. Indeed, housing affordability conditions are among the best they have ever been.

Especially for investors with cash, the situation is providing them with a golden opportunity. The investor share of home purchases has been creeping up. Investors accounted for 18 percent of home purchase activity in July; the share reached 22 percent in August. (The first-time homebuyer share fell after the homebuyer tax credit expired last year, and investors stepped in to fill much of the gap).

A significant share of investors is purchasing properties via all-cash transactions. All-cash purchases represented 30 percent of all home sales transactions across the country and accounted for over half of the sales in hard-hit regions like Las Vegas and Miami.

At the same time, higher rents are also attracting investors to the market and the attractive rates of return from rising rental income is a strong lure.

Rents rose at a better than 3 percent annualized rate in the third quarter of 2011, according to government data, and private data sources suggest even faster rent growth. If annual rent gains remain near 3.5 percent, rents will double in 20 years. If the rents rise 5 percent a year, rents will have doubled in 14 years.

In addition to strong returns on rental property, investors can anticipate solid home price appreciation over the long haul.

Given that the housing bubble has virtually deflated, the future path for home prices path should follow the future path for rent growth. That means home prices could also double in 14 to 20 years, though it is unclear as to when home prices will begin to catch up with rents. But long-term investors are sure to catch some if not most of the upward ride.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss this great opportunity.

LOCAL HOMEBUILDERS PICK UP PACE IN SEPTEMBER

Local Homebuilders started projects in September at the fastest pace in 17 months, a hopeful sign for the economy.

Single-family building permits in Colorado Springs totaled 124 in September, a 53.1% increase over the same month last year.

It was the third year-over-year gain in permits during the past four months.

Looks like we're on track for a modest recovery this year.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

Joke #1

Bronco’s Coach Fox has a new plan for insuring a victory every Sunday.

He will let Tim Tebow take a nap before every game and then, right before the game begins, he will wake Tim up and whisper in his ear, “Tim, wake up. There’s only five minutes left to play before the game ends.”

Joke #2

We think we used this joke before, but it is still appropriate

The dream of the older generation was to pay off a mortgage. The dream of today's young families is to get one.
 
If you think no one cares you're alive, just miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they can’t pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It's the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you're looking at something you should be doing.

October 17, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

Because there are a lot of interesting developments in the real estate market, we are calling this issue,

“BITS AND PIECES”

THE relocation MARKET ….IS THAT PROMOTION REALLY WORTH IT??

At the recent Denver meeting of Worldwide ERC, several interesting aspects of relocating employees were explored. The decline in home prices which resulted in many employees being “underwater” with their mortgages has forced companies to revise their policies regarding employee transfers:

• Unless you are a top-level manager, your company may not buy out your present mortgage. Instead, they may give you a rental allowance in your new city, encourage you to rent out your home in the city you are leaving and subsidize the rental differential (if your rental income does not pay for your mortgage payments) for some specified period of time. There can be tax implications for you, should this happen.
• If you end up renting out your present home, because of relocation, you become a landlord and will probably have to hire a management company to handle your property. Obviously, the relocation process is a much more complicated process than it was when employers could simply buy out your mortgage.

Does this affect employers’ relocation policies? You bet. In fact 65% of companies now offer some form of pre-decision support to their employees who must move and 65% of employees who are offered a job that requires a transfer don’t accept the offer because of the housing issue.

Bottom line - Better check all of this out, before you take that promotion!!! If you are an employer who is trying to work out the best possible solutions to your relocation policies, or, if you are an employee who is facing relocation, we would be happy to share our expertise with you.

IS NOW A GOOD TIME TO BUY? GUESS WHAT MY ANSWER IS.

Many of our readers kid us about the fact that we constantly say, “Now is the time to buy”. But seriously, folks, it’s true. Look at what experts are saying:

• The Wall Street Journal (Saturday, Oct. 15, 2011) says, “It’s Time to Buy That House”. The article points out that it’s an excellent time to buy a house to live in for the long term, or for investment income (but not for a quick flip) because of two factors:

The nation’s ratio of house prices to yearly rents is nearly restored to it pre-bubble average and

When mortgage rates are taken into consideration, houses are the most affordable they have been in decades

The article goes on to point out that, “if you have good credit, a job and a downpayment, you can get a mortgage. There’s more paperwork and scrutiny than five years ago, but things are pretty much like they were in the ‘80s and ‘90s.

“Houses aren’t the magic wealth creators they were made out to be during the bubble, but when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump”.

• Bloomberg Businessweek (Oct. 17 – Oct. 23, 2011) states that “Epic Home Deals Await the Creditworthy”.

“Bargains abound, and rates are at record lows – for those who qualify”

“Buyers “won’t gain anything by playing the waiting game”

The Bloomberg article points out that the current market features lower prices, but tomorrow’s market will feature higher rates. For example, the house that lists for $300,000 today, with a 4% mortgage, will require a $60,000 downpayment, and monthly payments of $1,145, for a 30 year total of $472,200.

That same house in 2012 will probably list for $289,000, with a 4.5% mortgage and will require a $57,800 downpayment and monthly payments of $1,171, for a 30 year total of $479,360.

So, it’s not just us that’s saying it, folks. NOW really is a great time to buy.

Call us at 598-3200, or 800-677-MOVE (6683) to discuss it.

WHAT DID THE SCEF PREDICT FOR COLORADO SPRINGS?

As we have mentioned in our previous enewsletters, last week at the Antlers-Hilton, the Southern Colorado Economic Forum presented their analysis of what will happen in our area in 2012. There were several great presentations, but a few speakers merit some special attention.

Jim Paulsen, chief investment strategist for Wells Capital Management showed several charts and graphs which tracked the recoveries from the recessions of the early 1990s and 2001 and our present recovery. Surprisingly, every aspect of the economy that was charted showed almost identical recovery lines and timeframes for all three recoveries. The only major segment of the economy that is not on the typical recovery track this time is housing. (Tell me about it).

Fred Crowley and Tom Zwirlein of the forum made presentations indicating that the nation and the world should expect another, smaller recession in 2012, but the impact on our local economy should be cushioned by the return to Fort Carson of between 7000 and 8000 troops now deployed in the two wars in the middle east. Spending by those troops should likely create another 3000 to 6000 local jobs

One startling statement made at the forum was that 10% of total defense expenditures within the US are made in the Colorado Springs area. No wonder our economy looks so much better than many other US cities.

The bottom line is that Colorado Springs is on track for recovery, and 2012 should see improvement in every economic area, but probably not more than 4%.

SO, HOW’S COLORADO SPRINGS LOOKING TO THE REST OF THE COUNTRY?

Colorado Springs has been rated:

• 9th for recovery from the recession by the Brookings Institute because of a combination of a well-educated workforce and industries that have not been hit as hard in the recession.(09/11)
• 11th Best Drivers by Allstate Report compared to America’s 200 largest cities (09/11)
• 4th Best Value City by Kiplinger’s Personal Finance for low living cost, strong economies and great amenities(07/11)
• 15th Best City for Families according to Parenting.com for quality of schools, affordable homes, low crime rates, jobs and parkland (07/11)
• 6th best in getting the “Bang for your Buck” metropolitan areas in America by U.S. News. Results are from the Council for Community Economic Research which looked at prices on a variety of basic goods and services, groceries, housing, utilities, healthcare, transportation and common expenses like movie tickets and newspapers (06/11)
• Garden of the Gods ranked 2nd Great Public Space by American Planning Association.(10/11)

In addition, Colorado was rated

• 3rd in the US by TechAmerica Foundation for concentration of high-tech workers, wages, trends in high-tech employment and other key economic factors (10/11)
• 5th Best State for Business by CNBC, which looked at cost of doing business, workforce, quality of life, transportation and infrastructure, economy, education, technology and innovation, business friendliness, access to capital and cost of living.(06/11)

And Tim Tebow will start as Quarterback for the Denver Broncos this Sunday. Who could ask for anything more?

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.
Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

In surfing through several “Joke” sites, we came across a list of “Dumb Colorado Laws”. We are reprinting them here, together with our reactions to them. (We were going to reprint the “Dumb Federal Laws”, but had to abandon that idea when the list grew to 247 pages).

Dumb Colorado Laws
It is illegal to ride a horse while under the influence. (Well, there goes half of my vacation).
Tags may not be ripped off of pillows and mattresses. (Apparently, using a flamethrower is legal.)

Colorado Springs
It is permissable to wear a holstered six-gun within city limits, except on Sunday, Election Day, or holidays. (Great !!!! Just when you need them the most)

Cripple Creek
It is illegal to bring your horse or pack mule above the ground floor of any building. (Especially if they are “under the influence”).

Denver
It is unlawful to lend your vacuum cleaner to your next-door neighbor. (Again, does this apply to flamethrowers as well?)

It is illegal to mistreat rats in Denver, Colorado. (Fill in your own comments on this one)

You may not drive a black car on Sundays. (This makes arranging funerals a little tricky)

Durango
It is illegal to go out in public dressed in clothes "unbecoming" on one's sex. (We’ll pass on this one, too)

Logan County
It is illegal for a man to kiss a woman while she is asleep. (Well, there goes the other half of my vacation.)

Pueblo
It is illegal to let a dandelion grow within the city limits. (If it weren’t for dandelions, my house wouldn’t have any landscaping at all).
 
Sterling
Cats may not run loose without having been fitted with a taillight. (Instead of an office party this year, we are all going to Sterling to watch the fitting process. Be sure to bring plenty of Band-Aids and ear-plugs.)

October 10, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

WHAT’S THE LATEST ON OUR LOCAL real estate MARKET ?

The Gazette reports (Oct. 6, 2011) that local home sales totaled 672 last month, an 11.4% increase over September 2010. This was the third straight month of sales increases.

So, sales are up …That’s good.

What about mortgage rates? Well, during the past year, mortgage rates have dropped approximately 1% (From 4.75% in October of 2010 to 3.75% in October of 2011). This amounts to a reduction of about 20% in the 30 year mortgage interest rate.

So, mortgage rates are lower …..That’s really good, too.

What about the inventory of available homes for sale. Well, our present inventory (4,196) is down 24.5% from September of 2010. This is the lowest number of homes for sale since January, 2010 and is a good indicator that our excess inventory is being cleared out.

On the negative side, the average sales price of local homes has dropped about 5.2% (from $230,419 in September of 2010 to $218,526 in September of 2011). This represents an approximate decline in price of 5.2%. However, indications are that prices have finally bottomed out. In fact, Lawrence Yun, the chief economist of the NAR, is now predicting that, “Despite major hurdles in the housing market, there are signs that sales and prices have reached their bottom”.(Realtor Magazine, October, 2011

So, home prices have fallen …and that’s not so good …but it looks like they may have hit bottom.

OK, what do all these numbers mean to Buyers and Sellers?

Well, the bottom line for Buyers is that the cost of acquiring and owning a home is lower today than it has been in recent history ….. but that could soon change. As our inventory shrinks and as prices seem to be bottoming out, it looks like our “Buyers Market” could be shrinking. ..Better buy now, or miss out on the best deals we have ever seen.

For Sellers, however, the outlook is improving. Increased sales, lower inventories and lower mortgage rates should make it easier for you to sell your home in the coming months.

Call us at 598-3200, or, 800 677-MOVE (6683) to discuss our local market and how current conditions might affect your decision to buy, sell or invest.

And to review all of the latest Sales and Listing statistics for the Pikes Peak area, CLICK HERE.

HOW IS HOMEBUILDING HOLDING UP ?

Locally, Home construction jumped in September by 53.1%, over the same month last year (The Gazette, October 4, 2011).

Also, single-family building permits totaled 124 in September. This figure represents the third increase in the last four months.

This upturn in homebuilding is likely one reaction to the decline in foreclosures. Through the first three quarters of the year, foreclosure filings totaled 2,615, down 26.9% from the same period last year. The area is now on a pace to close the year with about 3,800 foreclosure filings, which would be the fewest since 2007.

The increase in building permits, coupled with the slowdown in foreclosures, are two more indications that our local real estate downturn is coming to an end.

TRANSFORMING THE FUTURE ---WORLDWIDE ERC GLOBAL WORKFORCE SYMPOSIUM

This week, we will be attending the annual ERC Symposium in Denver. The presentations include such interesting topics as: “Help! My mortgage is underwater and my company wants me to move”, “Distressed properties: Challenges, Opportunities and Solutions in Mobility”, and “Changes in the U.S. Mortgage Industry”.

Every time we attend one of these Symposiums, we have the opportunity to hear from the experts and from our peers in the relocation industry. It’s another opportunity to learn how to help our clients with their relocation challenges.

If you are facing any issues related to relocation, please give us a call. We will be happy to hear from you and offer our assistance.

FACING THE LOSS OF YOUR HOME? WHICH IS BETTER, SHORT SALE OR FORECLOSURE?

Unfortunately, because of a loss of income or some other change in circumstances, many 
Homeowners find themselves in a situation where they can no longer afford to make their house payments. When this happens, they face a choice of either trying to “short sale” their home (i.e. work out an agreement with the lender who holds the mortgage to accept a buyer’s offer for less than the mortgage balance), or, letting the lender foreclose on the property.

Which of these options is better for the homeowner? Our experience tells us that a short sale is always the better option, for a number of reasons:

• The homeowner’s credit report after a short sale shows that, “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. This opens the door to financial recovery.
• The homeowner’s credit report after a foreclosure indicates, “Foreclosure”, together with an amount that was delinquent. E.g. $150,000. This deficiency balance will create a much larger problem for the homeowner to overcome when he applies for credit in the future.

The short sale also eliminates such insults to the family’s dignity as a Sheriff’s order, or some other type of legal action.

If you face this type of problem, please call us at for advice Call us at 598-3200, or, 800 677-MOVE (6683) to discuss your options.

MAYOR STEVE BACH TO LEAD ANNUAL CHAMBER TRIP TO D.C.

This week, Mayor Steve Bach will lead the Colorado Springs Chamber of Commerce’s annual trip to Washington DC to meet with key lawmakers and public policymakers to discuss issues of importance to the Pikes Peak region. The mayor, along with about 70 local business and civic leaders will meet with the economic development director of the National League of Cities to talk about tools for emerging businesses, small businesses and primary employers, and will also meet with Douglas Holtz-Eakin, president of the American Action Forum. Mr. Holtz-Eakin is also the former chief economist for the President’s Council of Economic Advisors and a former Congressional Budget Office official.

Other scheduled events include meetings with Colorado Senators Bennet and Udall, Rep. Eric Cantor, Rep John Boehner, Rep. Paul Ryan, the chair of the House budget committee, the Department of Defense and U.S. Chamber of Commerce officials.

This year, for the first time, the trip will be lead by our elected Mayor, who has the authority to make budgetary decisions, so, the impact of the trip will be more measurable and productive in developing more business for Colorado Springs.

The primary goal of this annual trip is to stimulate jobs in our region …..and jobs will determine how quickly we are able to put the recession behind us.

We will report about the results of these important, business-building meetings, in future issues.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

I really don’t know why this joke struck me as being funny.

An elderly couple had been experiencing declining memories, so they decided to take a power memory class where one is taught to remember things by association.

A few days after the class, the old man was outside talking with his neighbor about how much the class helped him.

"What was the name of the Instructor?" asked the neighbor.

"Oh, ummmm, let's see," the old man pondered. "You know that flower, you know, the one that smells really nice but has those prickly thorns, what's that flower's name?"

"A rose?" asked the neighbor.

"Yes, that's it," replied the old man. He then turned toward his house and shouted, "Hey, Rose, what's the name of the Instructor we took the memory class from?"

Oct. 3, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

PENDING HOME SALES CLIMB 7.7% ABOVE LAST YEAR
 
Although August 2011 national home sales dipped slightly from July, 2011, they rose 7.7% compared with sales in August, 2010.

Lawrence Yun, NAR Chief Economist stated that “The market is underperforming, given a pent-up demand in household formation.

“The unnecessarily restrictive mortgage underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy. We need to remove the road blocks to the housing recovery for people who are trying to take advantage of excellent affordability conditions”, Yun stated.

LATEST SALES AND LISTING STATISTICS

So that you might see how our local real estate market is faring, we have linked to the most recent Sales and Listing data for the Pikes Peak area, issued by the Pikes Peak Association of Realtors. At our publication time, statistics for September Sales had not yet been released, but we will include them in next week’s issue. Click here for the latest available statistics.

39 YEARS IN THE BUSINESS, AND WE CAN STILL BE SURPRISED !!!

Last week, we arranged for a 30 year, fixed-rate mortgage for an Investor-client. One of our local lenders wrote the loan at an interest rate of 4.375% for a non-owner occupied property

Our client reported that, considering the 4.375% rate and our local vacancy rate, he would show a positive income starting the first month after closing.

Last week, for an Owner-occupied home, we arranged for a 15 year, fixed-rate loan at 3% and 30 year loans were available at 3.75%.

These are the lowest rates we have ever seen.

If you’re thinking of buying, now’s the time to do it.

Call us at 598-3200, or, 800 677-MOVE (6683).

TWO MORE JOB-BUILDING PROJECTS FOR COLORADO SPRINGS ANNOUNCED

Agilent Technologies is moving forward on a $121 million, 55,000 square-foot expansion to their Garden-of-the-Gods campus. The project will include a 20,000 square-foot data center and a 35,000 square-foot technology center.

The economic impact of the Agilent expansion to Colorado Springs will match the expansion of the Wal-Mart data processing facility near Interquest parkway, which was announced in July. Wal-Mart has now finalized its purchase of the 24 acres required for the expansion, at a cost of $5.3 million for the land. Local government officials and business leaders projected that the new facility will pump about $488 million into the local economy over the first 15 years.

Both of these projects will create many new high-paying jobs in our local economy and our Mayor and City Council deserve a vote of thanks for aggressively pursuing these opportunities.

Keep up the good work !!

And, to add some icing on the cake, Tom Binnings, a senior partner in Summit Economics LLC, a Springs economic research and consulting firm, predicts that Colorado Springs job growth should resume next year as major construction projects take hold, including Fort Carson expansion, the Southern Delivery System water pipeline and several apartment complexes.

According to Binnings, some of the other positive factors that will impact Colorado Springs will be:

• Continued Population growth
• A resurgence of entrepreneurship
• Capital access
• Private sector company growth to replace expected government jobs losses
• Troops returning to and remaining at Fort Carson
• A modest resurgence of homebuilding.

And, best of all, we get to see the aspens turning for the next several weeks. …And to think, many people actually choose to live somewhere else…..on purpose. … Go figure !!

WANT TO LEARN WHERE OUR CITY WILL BE IN THE FUTURE? 
REGISTER FOR THE 15TH ANNUAL SCEF

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum will be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

FACING A TRANSFER ? BE AWARE THAT relocation BENEFITS ARE CHANGING

As a result of the decline in home-values and ‘upside-down’ mortgages, many companies are no longer able to simply ‘buy-out’ the homes of their employees who are transferring out of town. Instead, they are using ‘tiered policies’ or ‘Cafeteria relocation Benefits’ to assist their transferred employees moving to new locations.

According to the recent Worldwide ERC Survey, “relocation Assistance: Transferred Employees”, 73% of organizations now report they use tiered policies, compared to 10% in 1988. These companies use three or more tiered policies to better align policy with job or salary levels, homeowner/renter status and other criteria. 

Companies which use tiered policies report they must maintain some flexibility in these polices, or run the risk of alienating existing talent, but also must retain some rigidity, or exceptions become the rule and benefits can become inequitable.

Cafeteria relocation Benefits are offered by 24% of organizations (as compared with 13% in 1997).  These plans offer the company a menu of several benefits, such as:

• Homefinding trips
• En route travel
• Temporary living
• Shipment of household goods, autos and pets
• Home purchase assistance
• Home purchase assistance
• Spouse career transition
• Settling-in services
• Property management
• Child/elderly care assistance

As a long-time member of Worldwide ERC, we have many years of experience working with companies and transferees to assist them with their relocation needs and we would be pleased to discuss this important topic with you.

Give us a call at 598-3200, or, 800 677-MOVE (6683).

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

A bird was flying south for winter, but the weather turned cold early and he was frozen solid in a storm.

He dropped down, frozen and exhausted, into a pile of manure in a cow pasture.

At first, the bird was disgusted, until he realized that the manure was thawing him out! He was so happy to be warm again that he started singing for joy.

A cat that was nearby heard the singing, walked over, saw the bird and ate it

There are three morals to this story:
1. Not everyone who covers you with manure is your enemy
2. Not everyone who gets you out of the manure is your friend
3. If you happen to find yourself in manure, keep your mouth shut

September 26, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

THANKSGIVING IS JUST AROUND THE CORNER ....SO, LET'S TALK TURKEY

The Internet is a marvelous invention. You can use it to find members of your high-school class, the parts list for a 1937 LaSalle, the first movie that Clark Gable ever made and almost anything else you can possibly want to know.
Unforthunately, this wonderful source of information can also produce a state of mental paralysis called 'information overload'.

As we speak with prospective real estate Buyers and/or Sellers, we find that many people who have used the Internet (and their neighbors) to advise them about their Real Estate decision are suffering from this confusing problem of 'information overload'. ...and who can blame them?

On any given day, various media sources tell them that "The real estate market is looking much better" and, on the same day, another media source
warns them that "The real estate market has never looked worse".

They read that "mortgage rates are very low", .......but that "the government will soon cause mortgage rates to rise".

They are told that "this is a terrific time to buy", but that "thousands of people are losing their homes".

They hear one of their neighbors tell them they sold their home in three weeks, while another neighbor has had their home on the market for 18 months.

As a result of all of this contradictory information and advice, it is not surprising that the most-asked question we hear from our clients today is, "What would you do?"

So, we thought it would be helpful if "talked turkey" about how we are advising our prospective clients in this confusing market.

First, keep in mind that our personal business philosophy puts the long-term improvement of our clients'  financial welfare at the top of our list. You can't be sucessful and respected for 39 years in this business, if your main goal is just to 'make a buck'.

Building a client base of loyal friends requires that we always tell clients what we think is best for them, even though that means that we sometimes have to recommend not buying that home they just fell in love with, or, to suggest delaying putting their home on the market until their personal finances improve.

Second, remember that all real estate is local. The fact that housing sales in Las Vegas are in the tank, doesn't mean that home sales in Colorado Springs are necesarily terrible. In fact, even within our small segment of the national market, our sales and listing statistics are usually much better than the national statistics.

Using national home price averages to figure out local price trends makes about as much sense as using a national weather forecast to make plans for a picnic in the park.

As a matter of fact, even within the Pikes Peak region, real estate prices and activity can vary greatly based upon such factors as the age of the neighborhood, price range, time of the year, size of the home, improvements, proximity to schools ...and even how the local schools are rated.

You will note that, because both of these elements (your long-term financial welfare and local pricing factors) are based upon your personal situation (financial status, credit rating, your job security, the ages of you and of your children, etc.), the Internet cannot be of much help to you as you try to make your real estate decisions.

That's why you need some impartial advice from someone who has the answers abour what's really happening in our local market.

OK, let's get specific. I am thinking of selling my house. Is this a good time to list it?

Well, let's talk about selling in today's market. You should be aware that the selling price for your home in today's market will probably be less that you would like. Keeping that in mind, however

• If you are just moving to a comparable home closr to your work, remember that whatever financial "loss" you suffer when you sell, will be made up for when you buy your new home at a price that has also been reduced. So, you're not gaining anything by waiting to sell
   
• If you are selling to reduce your monthly payments, consider re-financing your present home, instead of selling. At today's historically-low refinancing rates, you could stay in your home  and still end up with lower monthly payments.
   
• If you are considering selling because you want to upgrade to a better home in a better part of town, you might consider buying your upgraded home and then, rather than selling, keeping your present home as a rental property. Occupancy rates are high, available inventory offers you a wide selection of properties and you will get a terrific mortgage rate on your new home. But there are drawbacks to becoming a landlord and you should discuss this option with us, to avoid some of the unwanted 'surprises' that this option sometimes involves
   
• If you are selling because you are 'underwater' with your mortgage, I'm afraid there are no easy answers. Some of the variables that affect 'short-sale' properties are: Who holds the mortgage (Some lenders are reasonable to work with ...but some are not). How long can the prospective buyer wait to occupy the home (The short-sale process can take many months to complete) The bottom line here is, call us to discuss your specific situation.

As you can see, there is no easy answer to the question "Is this a good time to sell".
 
OK, Should I consider buying a house in today's market?

Absolutely !!!!! New homeowners and Investors alike are going to come out ahead, if they buy now. Low prices, Large inventories, Great mortgage rates (the lowest in history), Low Vacancy rates, a ballooning supply of new renters are all combining to offer a wonderful opportunity for Buyers. Call us to discuss the window of opportunity that is now open.

P.S. If you're on the fence about buying, call us to get the straight scoop on how much your payments would be on a new home. You might find that it would be cheaper than the rent you are now paying

One thing is for sure. The Internet can't give you the kind of advice you need when deciding to buy or sell a home.

Better give us a call at 598-3200 or 800-677 move (6683). We will be pleased to discuss the real estate options that are available to you.

LATEST SALES AND LISTING STATISTICS

Click here for the latest sales and listing statistics for the Pikes Peak area.

Our local sales reflected the national trend in August. Home sales jumped from a year ago by the biggest percentage in nearly 1 1/2 yearsSales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. According to NAR President Ron Phipps, the biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers and appraised valuations below the negotiated price.
 

MORTGAGE RATES DIP AGAIN

Within the past few days, mortgage rates for a 30-year, fixed-rate mortgage dropped to 3 3/4%. Many other types of mortgages, like various adjustable loans went even lower. Call us to find out how this might affect your refinancing plans.

THE LATEST GOOD NEWS FOR COLORADO SPRINGS - FROM THE GAZETTE

Initial claims for unemployment were down 23.2%
Unemployment rate was down to 9.3%
New auto and truck registrations were up 42.4%
Taxable retail sales were up 11.9%
Hotel occupancy rate was up to 77.8%
Foreclosure filings were down 21.8%

But the best news of all is that, when you wake up every morning, you get to see the most beautiful sight in the world ...the sun shining on Pikes Peak. No wonder it inspired the song, "America the Beautiful"

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

Please allow me to implement my negotiating skills on your behalf.
 

Just click on the icon at the top of this email to listen to my podcast for this month …

JOKE OF THE WEEK

Two social engineers were discussing social policy and the first one says: "I believe in fairness. ...a share and share alike policy. We should all have an equal share of wealth."

"Well" replied the other social engineer "I'm not sure about that. What you mean is that if you have two yachts you'd give me one?"

"Of course" says the first.

The second social engineer continued: "and if you had two factories, you'd give me one of them too?"

"Absolutely"

"So" says the second social engineer, "if you had two cars then you'd give me one of them?"

"Ah, now hang on a minute" says the first, "That's not fair. You know I've got two cars!"

September 19, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

CONSIDERING RELOCATING FOR A BETTER JOB? …HERE ARE 5 GOOD REASONS YOU SHOULD CONSULT A relocation EXPERT.

The Kelly Workforce Global Index released earlier this year found that more than three quarters of the people surveyed said they would be willing to move for the right job. At the same time, however, the Society of Human Resources Management reports that many employers are reducing or freezing their company-paid relocation programs.

One individual who recently moved to Colorado Springs reported to us that the move cost him almost $10,000 for which he received no compensation from his employer.

So, if you are offered the opportunity of taking a promotion that would require you to assume some of the costs of relocating, you should consider the following five questions, as you make your decision.

1. Can I afford it? There are a number of moving calculators available online, but according to Worldwide ERC, a workforce mobility association of which we are members, the average cost of shipping household goods for a domestic relocation was over $12,000 in 2010.

Also consider the cost of breaking a lease or selling your home (assuming you can find a buyer) and traveling back and forth between your old and new locations.

Because of the shaky market, you may have trouble selling your present home and may have to rent in your new location, until your present home sells.

Keep in mind that, under certain circumstances, the IRS allows you to deduct reasonable moving expenses, but tax deductions are not as valuable as tax credits and are only applicable if you itemize. Expenses for breaking a lease or buying and selling your home are not deductible. Call us to discuss this deduction.

We are very experienced in relocations and can assist you on both ends of the relocation process. We can help you sell your present home and buy your new home, regardless of where you live.

2. What's the local cost of living? Determine whether your new salary will cover living expenses in your new home by looking at cost-of-living calculators and talking to people in the area.

Food costs, utility (air conditioning and heating) costs, etc. vary depending upon what part of the country you are moving to. We can provide you with living-cost statistics for all areas in the U.S.

3. Is the company (and the local industry) stable? If a company is paying for all or part of your relocation costs, they are investing in you over the long term. But there's always the risk that you'll uproot yourself and your family for an opportunity that fizzles out. It can happen that, if the company goes under, you could find yourself without friends or a support system in an unfamiliar community. That’s especially risky if you're expected to turn things around at a troubled company.

Therefore, you should consider what other opportunities are available in the area, should you find yourself without a job. Talking to your relocation expert can help you do your research in this area.

4. Who else would need to relocate? It's much easier (and cheaper) for an individual to relocate than it is for an entire family, especially one with children and two working spouses. You should consider your spouse's career goals, your kid's ages, and how invested your family is in the local community.

5. Is telecommuting a possibility? Before relocating yourself and your family, consider whether you or your spouse might telecommute instead of physically reporting to an office. Often, that depends on the culture of the organization. Within some companies, telecommuting is a way of life. People are all over the country because their clients are all over the country, so it really doesn't matter where you're living. That said, your spouse might be able to telecommute to his or her current job instead of searching for a new one, which could help ease the transition financially.

Using the services of a relocation expert will help you address these questions and the myriad of other topics that can complicate the relocation process. Salzman real estate Services is a long-time member of Worldwide ERC, an organization that specializes in assisting their clients relocate all over the world.

If you are considering moving in or out of the Pikes Peak area, we can help make it a problem-free process.

Call us at 800-667-6683, or, 719 598-3200. We would be happy to discuss your relocation needs.

JUST WHAT IS IT THAT A REALTOR DOES??

Many people think that all a Realtor does is put a “FOR SALE” sign in the front yard and wait for someone to come along and make an offer. But a good Realtor does much more than that.

We recently participated in the sale of a local residence that illustrates how an experienced Realtor can help both the Buyer and the Seller to achieve their goals in a “Win-Win” home-sale transaction.

We were asked to list a local home that was part of an estate sale. The three heirs of the estate lived in different states and wanted to dispose of their deceased father’s home.

Our inspection of the home and our analysis of the neighborhood comparables led us to recommend to the Sellers that some renovating on the inside of the home would be necessary to bring the property up to a competitive level. We also recommended a competitive, fair listing price.

The Sellers went along with our recommendations and we listed the home for sale.

Rather than sitting around waiting for someone to knock on our door with an offer, we contacted several prospective Buyers ….people who had spoken with us in the past about their interest in that particular neighborhood.

One of these prospective Buyers had always been a Renter, and was hesitant to take on the responsibilities of homeownership, but, after we explained to her that present market prices were lower than we would ever see again, that mortgage rates were historically low, and that her monthly payment for the house would be approximately 30% lower than she was currently paying for rent, she decided to take the plunge into homeownership.

Within one week after listing, both the Seller and the Buyer got exactly what they were looking for …a quick sale at a fair price.

That’s the kind of involvement that a good Realtor can bring to a transaction and the kind of commitment to the welfare of both parties that Buyers and Sellers have a right to expect from their Realtor.

Call us at 800-667-6683, or, 719 598-3200, to discuss your specific housing wants and needs. Let us help you achieve your real estate and/or investment goals.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

And please take note, you can click on the icon at the top of this email to listen to my latest podcast. ….

LATEST STATISTICS

Click here for the latest Sales and Listing statistics for the Pikes Peak area

JOKE OF THE WEEK

Two deputies in the Sheriff's Office, one who had been in town for ten years and the other who had just transferred, answered an emergency call. When they walked into the house, they found the nude bodies of a man and a woman in the bedroom. They had been shot to death.

When they went to the living room, they found the body of a man with a gun at his side.

"No doubt about it," the new deputy said, "This was a double murder and suicide. This guy came home and found his wife in bed with somebody else and shot them both. Then he shot himself."

"You're right," the experienced deputy replied. "But I'll bet you when the sheriff gets here he's going to say, 'It could have been worse'."

"No way. You're on."

The old sheriff arrived at the scene. "No doubt about it," the sheriff said, shaking his head. "It was a double murder and suicide." After hesitating for a moment, the old sheriff looked his deputies in the eyes. "But, you know," he said, "it could have been worse."

The deputy who had lost the bet jumped up and shouted, "Sheriff, how could it have been worse? There are three people in this house, and all three of them are dead. It couldn't have been worse."

"Yes, it could," the sheriff retorted. "You see that guy there on the floor? If he had come home yesterday, that would be me!"

August 29, 2011

HARRY’S WEEKLY UPDATE
A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

CSCC AND CSREDC UNIFY TO BRING MORE JOBS TO COLORADO SPRINGS

The Boards of Directors of the Greater Colorado Springs Chamber of Colorado Springs (CSCC) and the Colorado Springs Regional Economic Development Corporation (CSREDC) have decided to unify the two organizations to maximize their efforts to attract new jobs to the area.

In announcing the new, unified organization, Bill Hodgkins, Chair of the Board for CSCC said, “Both organizations are currently strong, but they will be even stronger together’.

Doug Quimby, Chair of the Board for CSREDC, stated, “We need integrated strategy for economic development, and a strong force to ensure it is successful. We now have the means and opportunity to do so”.

Quimby also stated, “Small business is the backbone of our economy. We support the Chamber’s key initiatives of fighting for small business, supporting our military and focusing on our defense economy. We believe this new organization can only reinforce these critical initiatives”

Editor’s note: We applaud this decision to focus the efforts of both of these organizations in attracting new jobs to our area. The Pikes Peak Area has everything a business could want to help them succeed and all we need is a vehicle for getting that message out to the rest of the country. This new organization should help us spread the word. …Want more proof of our great business environment, see the following item.

KIPLINGER’S PERSONAL FINANCE RATES COLORADO SPRINGS AMONG THE BEST

The September 2011 isssue of Kiplinger’s Personal Finance magazine rates Colorado Springs as the fourth best city in the nation for value.

Kiplinger’s states that “This burgeoning Western town is filled with transplants drawn by spectacular outdoor beauty, 300 days of sunshine a year, a relatively low cost of living and a vibrant business community that finds little conflict between economy and ecology”.

The article also points out that our city is home to more than a dozen colleges and actively woos companies with tax incentives and a highly educated workforce.

The city offers 150 parks and 260 miles of trails and the Pike National Forest, which borders the city, offers camping, fly-fishing, camping, biking, horseback riding and scenery that extends as far as the eye can see.

Rents and real estate are reasonable, too. The median home sells for less than $199,000 and monthly rent on a two-bedroom apartment is less than $800.

Editor’s note: Another indication of the health of our local economy is the fact that Colorado Springs foreclosure filings are down 32.6% from January 2010.

LAST WEEK’S ARTICLE ON INVESTMENT PROPERTY STIRRED UP A LOT OF INTEREST

We received a lot of feedback relating to the article in last week’s eNewsletter regarding investment property. Realtors and prospective Buyers from around the US contacted us to learn more about the opportunities that are now present in the market. We thought the response merited some further comments about this unique opportunity.

Just to review the window of opportunity that now presents itself to all prospective Buyers:

• Prices are ridiculously low …probably lower than you will ever see again
• Mortgage Rates are historically low… probably lower than you will ever see again
• The inventory of available homes is very high. It is a Buyers’ market and you have your ‘pick of the litter’ for both new and   resale homes, thanks to foreclosures and short sales.
• The high volume of ‘New Renters’ (thanks to foreclosures) has resulted in record low vacancy rates for rentals. Your investment property is almost guaranteed to rent.

And, to cite a couple of reasons to buy now

• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.
Purchase price $200,000
Down Payment $50,000
Loan Amount $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers work out:

Monthly payment P&I $760
Estimated taxes $120
Estimated Insurance $ 80
Total Monthly Payment $960

Typical one-year tax deduction
Interest deduction $6,700
Estimated property tax $1,440
Total deduction $8,140

Annual Income-tax savings $2,686

Net cost of the property
Monthly payment $ 960
Less tax savings $(224)
Net cost $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:
Income $1,054
Loan cost $ (736)
Income before depreciation $ 318
Depreciation per month $ (390)
Actual loss per month ($72)

Bottom line: This investment property would actually cost you only $72 a month.

Further, the estimated annual depreciation would be $4,675.

Now, let’s look at the long-term numbers. If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go from $200,000 to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, (and not even the most pessimistic economists are predicting that), your rate of return would still be approximately 16%. In a zero-growth economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more personal detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak region

JOKE OF THE WEEK

10 Office Rules:

10. Never walk without a document -- People with documents look like hardworking employees headed to important meetings. People with nothing in their hands look like they're headed for the cafeteria. Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you really do.

9. Use computers to look busy -- Any time you use a computer, it looks like "work" to the casual observer. When you get caught by your boss -- and you will get caught -- your best defense is to claim you're teaching yourself to use new software, thus saving valuable training dollars.

8. Messy desk -- only top management can get away with a clean desk. For the rest of us, it looks like we're not working hard enough. Build huge piles of documents around your workspace. Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.

7. Voice mail -- Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing -- they call because they want YOU to do work for THEM. If somebody leaves a message for you and it sounds like impending work, respond during lunch hour when you know they're not there

6. Look impatient and annoyed -- According to George Costanza, one should also always try to look impatient and annoyed to give off the impression that you're always busy.

5. Leave the office late -- Always leave the office late, especially when the boss is still around. Make sure you walk past the boss' room on your way out. Send important e-mails at unearthly hours (i.e. 9:35pm, 7:05am, etc.) and during public holidays.

4. Creative sighing for effect -- Sigh loudly when there are many people around, giving the impression that you are under extreme pressure.

3. Stacking strategy -- It is not enough to pile lots of documents on the table. Put lots of books on the floor, etc. (thick computer manuals are the best).

2. Build vocabulary -- Read up on some computer magazines and pick out all the jargon and new products. Use the phrases freely when in conversation with bosses. Remember, they don't have to understand what you say, but you sure sound impressive.

1. MOST IMPORTANT -- DON'T forward this to your boss by mistake!

September 12, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTAIL real estate MARKET

WHEN YOU DECIDE TO INVEST, LET US HELP YOU AVOID THE PITFALLS

As we have been emphasizing in recent issues of our Enewsletters, there are great opportunities for investors in our Colorado Springs real estate market. Low prices, low mortgage interest rates, large inventories of available homes, low vacancy rates, etc. all combine to offer a window of opportunity for investment that may never open again.

In fact, according to Realtor Magazine, more homes are turning into rentals. Nearly 35% of occupied homes were rented in 2010, which is a 33.8% increase from 2000.

Furthermore, Hotpads.com, a real estate research firm, states that the vacancy rate for rentals is at its lowest level since 2003 and the average nationwide rent increased to $1,320 in 2010, for a jump of 11.6%.

However, smart investors in real estate should be aware of some of the potential problems they might run into, when they jump into the investment market. As the Wall Street Journal points out (Sept. 10-11, 2011), first-time investors frequently make one or more of the following mistakes:

• Confusing a cheap deal with a good deal. Location is still the most important factor for an investor. Are renters likely to want to live in the property? That’s where we can help you analyze the specific local neighborhood history.
• Overlooking key costs. Closing costs, maintenance, etc. will all impact your eventual profit. We are very aware of all of these ‘add-ons’ and can help you evaluate the true cost of your prospective property.
• Forgetting that time is money.You lose money when your property is empty, whether you are painting it, or between tenants. Knowing how to adjust your rents accordingly is something we can help you with.
• Assuming you will sit back and watch the money roll in. Unless you are willing to devote yourself exclusively to maintaining your rental property, you will probably need the assistance of a good property management firm to screen tenants, handle maintenance, etc. We can help you contact a reputable individual or company to handle the day-to-day management issues that are a necessary part of your investment.
• Underestimating repair costs. Unless you have experience with home repairs and intend to do your own maintenance, you will probably be surprised by the routine costs involved in the maintenance of rental properties. (Many experts recommend setting aside a reserve fund to handle such maintenance). Again, we will be happy to work with you in determining how much ‘set-aside’ you should plan for.
• Assuming that owning a rental is the same as owning a home. You are willing to put up with many small inconveniences and defects in your own home that renters will not accept. Here again, a good property manager can take over that aspect of investment property. Give us a call to discuss this aspect of investment.

Investors used to aim for rents that amounted to 1% of the purchase price of their investment. (That’s $1000 a month in rent for a $100,000 home). That equals an annual gross return of 12%

Today, however, because of the factors discussed above, many investors are getting rents that equal 2% of the purchase price. That’s quite an inducement to acquire an investment property before the window closes on this opportunity.

Call us at 598-3200, or (800) 677-MOVE(6683) and we will be happy to chat with you about the investment opportunities available in our local market.

TWO MORE REASONS FOR BUYING NOW !!!!

On October 1, 2011, the FHA maximum loan amount available from FHA will drop in most cities, including Colorado Springs, from $325,000 to $272,200. Experts warn that this change in policy will prevent Fannie Mae and Freddie Mac from financing a significant segment of the real estate market and will put a lot of Buyers out of the market.

This drop in the conforming loan limit is expected to affect 2% of all homes nationwide.

Another reason for buying now is that many lenders are getting reluctant to lend to anyone except those who have ‘pristine credit’. Even the Wall Street Journal (Tuesday, Sept. 6, 2011) noted that many prospective Buyers with excellent credit have been turned away by some lenders.

Fortunately, we have good, working relationships with our local lenders and we have not had any trouble getting our clients financed. If you have had any problems in this area, give us a call. (598-3200, or (800) 677-MOVE(6683).

Bottom line: Better Buy Now.!!

THE BROOKINGS INSTITUTE SAYS COLORADO SPRINGS IS POISED FOR RECOVERY

According to a recent study by the Brookings Institute, Colorado Springs is ninth among the nation’s 100 largest metropolitan areas in a ranking looking at the resiliency of an area’s industries and the gap between the education of its workforce and the needs of its employers.

Jonathan Rothwell, a Brookings senior research analyst and the author of the report, stated, “There is no reason Colorado Springs shouldn’t bounce back once the nation’s economy begins improving. Colorado Springs has one of the best balanced economies between workers’ education related to the needs of their jobs”.

LATEST STATISTICS FOR COLORADO SPRINGS

The most recent Sales and Listing report of statistics for the Pikes Peak area, published by the Pikes Peak Association of Realtors, shows that home sales in August jumped from a year ago by the biggest percentage in nearly 1 ½ years.

Sales of new and existing homes totaled 832 in August, up 20.9% from a year earlier. This was the largest increase since March of 2010, when sales benefited from the federal tax credit for first-time homebuyers (A program which expired in June of 2010).

The August increase followed an 11.9% gain in July, the first indication of improvement after sales fell in 10 of the previous 12 months.

Most experts agree that the current rise in sales is due to the low interest mortgage rates which are currently available.

Click here for the latest Sales and Listing statistics for the Pikes Peak area

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my latest podcast. ….

And, if you would like to learn more about our Job Loss Protection Program, please contact us.

JOKE OF THE WEEK

We thought you might be interested in the Winner of the Top Ten Dumbest Criminals of 2010

THE WINNER!

A Charlotte, NC, a man purchased a case of very rare, very expensive cigars. He proceeded to insure them against, among other things, fire.

Within a month, having smoked his entire stockpile of cigars and without having made even his first premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated the cigars were lost "in a series of small fires."

The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in the normal fashion. The man sued....and won.

In delivering the ruling the judge agreeing that the claim was frivolous, stated nevertheless that the man held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure against fire, without defining what it considered to be "unacceptable fire," and was obligated to pay the claim.

Rather than endure a lengthy and costly appeal process the insurance company accepted the ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed the check, however, the company had him arrested on 24 counts of arson. With his own insurance claim and testimony from the previous case being used against him, the man was convicted of intentionally burning his insured property and sentenced to 24 months in jail and a $24,000 fine.

The moral of the story?

Darned if we can tell.

August 22, 2011

HARRY’S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

HOMEOWNERSHIP: IT’S STILL THE AMERICAN DREAM

Fannie Mae and Freddie Mac just released the results from their NATIONAL HOUSING SURVEY. We thought you might like to see some of the results.

First, let’s look at Rent vs Buy:

•  63% of renters have aspirations of someday owning their own home
• 72% of renters think that owning is superior to renting
• 95% of homeowners see homeownership as a positive experience.
• 96% of homeowners live in a single-family residence, while 46% of renters live in a multi-unit building

The survey also shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, were:

1. It means having a good place to raise children and provide them with a good education
2. It provides a structure where you and your family feel safe
3. It allows you to have more space for your family
4. It gives you control of what you do with your living space (renovations and updates)

How about homeownership as an investment? Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what survey respondents had to say about that:

• 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
• 56% believe that homeownership has more potential as an investment than any other traditional asset class.
• 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters).

The bottom line is that, even in difficult times, Americans still realize the value of homeownership.

SO, I’M THINKING OF SELLING MY HOME. WHAT SHOULD I BE AWARE OF??

If you want to sell your home right now, there are some factors you should be aware of. First of all, our current real estate market is, to use a technical term, “lousy”. Why did this happen and how does it affect you?.

• As a result of the national economic decline, foreclosures and short-sale homes have flooded the real estate market, thus creating a temporary oversupply. When there is an oversupply of a product or service, prices tend to go down. …and homes are no exception to that rule.
• Again, as a result of the general economic decline, this year’s county assessments of property values show lower values for homes, thus impacting our pricing of homes for sale. The bottom line is that home prices have gone down from their peak of about five years ago.
•  This temporary oversupply has allowed prospective Buyers to be very selective about the price and condition of any home they look at. What this means to you, as a Seller, is that, if you want to sell right now, you will have to price your home realistically and make sure it is in great condition. Your house will not sell if it is overpriced (compared with your competition) or if there is deferred maintenance, peeling paint, dirty windows, worn carpeting, etc.

All of this means that you will probably have to invest some money in repairing or remodeling your home to bring it up to the quality that today’s Buyers are looking for.

Because of these factors, many homeowners have decided not to sell right now, but rather, to stay put, until prices rebound. They are adding features, finishing basements, remodeling, etc. Some are doing this to prepare their home for eventual sale, Others are doing it to upgrade their present home so they can stay in it, rather than selling it.

Call us now to discuss your options. We are very familiar with every neighborhood in this area and we will be happy to discuss with you the current market value of your present home, the relative merits of selling now, selling later, buying your next home now and converting your present home into an investment property, etc., etc., etc.

Call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

OK, I THINK I’LL HOLD ON TO MY PRESENT HOME FOR NOW …..BUT TELL ME ABOUT INVESTMENT PROPERTY. IS IT REALLY A GOOD IDEA?

There’s a great window of opportunity right now for acquiring some investment property. Why right now? …Because:

• Prices are low …probably lower than you will ever see again
• Rates are low… probably lower than you will ever see again
• The inventory of available homes is very high. You have your ‘pick of the litter’
• The high volume of people who, prior to foreclosure, were homeowners, but who are now renters has resulted in very low vacancy rates.
• Lenders are starting to tighten lending requirements and loans will soon become more difficult to obtain
• As of October 1, 2011, FHA maximum loan amounts will drop from $325,000 to $272,800 for most communities in the US, including Colorado Springs.

The Wall Street Journal, Wed. Aug 17, 2011 stated, “Prices are so low that more investors are scooping up foreclosed properties and renting them out. Investors can cover their monthly costs and make an 8% -12% profit pretty easily. We haven’t seen that in 20 years”.

As a matter of fact, the profit can easily be greater than that.

As an example, let’s take a look at what we discussed with one of our clients just last week, as we helped him build his retirement portfolio with an investor property. The following figures are based on realistic estimates in our local; market.

Purchase price                          $200,000

Down Payment                              50,000

Loan Amount                            $150,000

Using today’s investment interest rate of only 4.5% for non-owner occupied property, on a 30-year fixed loan (and assuming a tax bracket of 33%), here’s how the numbers worked out:

Monthly payment P&I                $760

Estimated taxes                       $120

Estimated Insurance                  $  80

Total Monthly Payment            $960

Typical one-year tax deduction

            Interest deduction          $6,700

            Estimated property tax  $1,440

            Total deduction            $8,140

Annual Income-tax savings        $2,686

Net cost of the property

            Monthly payment           $ 960

            Less tax savings           $(224)

            Net cost                        $736

The monthly rental net income (after estimating repairs and vacancies) would be $1,054

On a monthly basis, that works out to:

            Income                                     $1,054

            Loan cost                                 $ (736)

            Income before depreciation          $  318

            Depreciation per month               $ (390)

            Actual loss per month                   ($72)

Further, the estimated annual depreciation would be $4,675.

If you held this property for 10 years, assuming typical inflation and appreciation, you could expect an average annual growth of 3% per year. Thus, the market value would go to $260,000.

At the end of the ten years, your balance on the loan would be at $120,134 and your equity would be $139,866 from your original investment of $50,000. That’s 27.97% growth per year as your rate of return.

Finally, in the event that there is absolutely no growth for ten years, i.e. the economy does not grow at all, your rate of return would still be approximately 16%. In a dead economy, that would be fantastic !!

The icing on the cake is that these figures don’t even take into account your annual tax benefits/deductions. …That alone puts an additional $8,140 per year in your pocket.

And you thought Stocks were the way to go

If you would like us to go into more detail about these numbers, please call us at (719) 598-3200, or, 800 677 MOVE (6683). We would be happy to hear from you.

MARK YOUR CALENDAR NOW FOR THE 15th Annual Southern Colorado Economic Forum

On October 14, 2011, The Southern Colorado Economic Forum will bring together local experts from the public, private, and academic sectors to report on our economy. Thought of by many as our region’s economic “State of the Union,” the Forum offers the community an annual snapshot of local economic activity and provides forecasts to help businesses plan for the upcoming year.

This valuable research about where our community has been and where we are headed is made possible through a cooperative effort between UCCS and local business sponsors. This long-standing partnership between the academic and business communities has produced timely, accurate, and objective economic data to guide local businesses for nearly a decade.

This year’s Forum wiill be held in the Heritage Ballroom of the Antlers Hilton.

To register for this very informative meeting, Please click here.

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month …

LATEST SALES AND LISTING STATISTICS

Click here to see the latest Sales and Listing statistics for the Pikes Peak area.

JOKE OF THE WEEK

Top Ten Things Never Before Said by a Presidential Candidate

10. "Vote for me or I'll slash your tires"

9. "Forget universal health care -- I'm buying every American an XBox"

8. "In a crisis I ask myself, 'What would Regis Philbin do?'?

7. "I'd give you my plan for economic recovery if I actually had one"

6. "If your last name begins with 'M' through 'Z,' sorry -- your taxes are doubling"

5. "We're gonna cut the deficit by selling North Dakota to Canada"

4. "I have tons of experience from being president of the Aston Kutcher fan club"

3. "Lady, that is one ugly baby"

2. "When I'm president, I'm putting Elvis on Mt. Rushmore"

1. "Read my lips: I plan to fire half the people in Washington"

August 15, 2011

HARRY'S WEEKLY UPDATE

A CURRENT LOOK AT THE COLORADO SPRINGS RESIDENTIAL real estate MARKET

IS NOW A GOOD TIME TO BUY YOUR NEW HOME?

LET'S LOOK AT THE FACTS

No matter what news outlets you read, the scary headlines about the housing market may have convinced you to postpone the purchase of your new home until the market "settles down".

Unfortunately, if you have been influenced by these depressing news stories into postponing your home purchase, you will be missing out on the opportunity of a lifetime.

Let's take a cold, hard look at our local housing market to see what the facts are.

HOW IS COLORADO SPRINGS DOING ?? 

Actually, compared with most other parts of the country, Colorado Springs is doing quite well. The national statistics from the National Association of Realtors and the local statistics from the Pikes Peak Association of Realtors show that, over the past four years, i.e. the period that encompasses the much-publicized decline in the housing market, the national median home price, according to NAR, has gone from $223,500 in July of 2007 to $171,900 in July of 2011. That's a decline of approximately 23%.

However, during that same period (July of 2007 to July of 2011) our local median home price has only gone from $227,000 to $194,000. That's a decline of approximately 10%. .that's 13% better than the national average for home prices (and much, much better than your retirement fund has done)

The bottom line is that "all real estate is local", and therefore, the headline that laments that "You can buy a home in Detroit for $50", doesn't really have any meaning in our local market. Our prices have held up remarkably well. In fact, they appear to have 'bottomed out' and have started to climb again.

AREN'T FORECLOSURES STILL CAUSING A PROBLEM??

In fact, the worst of the foreclosure problem came two years ago. Since then, most of the 'at risk' Homeowners have been weeded out. Foreclosure filings in El Paso County in the second quarter of 2011 dropped 36.1% from the same period in 2010 and first-half foreclosure sales were down 15.6% from last year. As a reflection of this drop, new construction is picking up. Single-family building permits are up and El Paso County is seeing more construction activity than any other major metro area in the state.

However, one significant effect that foreclosures are having on the market is that everyone who has lost a home through foreclosure has become a renter. This has resulted in a very low local vacancy rate, an increase in rents and a rise in the sale of investment properties. You may never have thought of yourself as a landlord, but you should give some serious consideration to purchasing a rental property. Prices are low, Interest rates are at record-lows and there is a big demand for homes and apartments, so rents are rising rapidly.

WHAT IS HAPPENING WITH MORTGAGE RATES? ......OR...........

HOW MUCH HOUSE WILL MY MONTHLY P&I PAYMENT GET ME ?? 

Here's some great news for prospective Buyers. This week, mortgage rates have gone down to as low as 3.875% for a 30 year, fixed-rate mortgage. As Karen Moore of Mortgage Loan Originator Residential Mortgage of Colorado, one of our preferred lenders points out, "These rates are lower than I have seen in my 29 years of mortgage banking".

To put these rates into real numbers, in 2007, the monthly principal and interest payments on a $200,000 home with a 6.5% mortgage was $1264.14.Today, a $200,000 home with an 3.875% mortgage would have a P&I monthly payment of only $940.47. That's a savings of $323.67, or around 25% less expense every month for the lucky HomeBuyer who decides to buy right now.

Take a look at how much your monthly Principal and Interest payment would buy at today's mortgage interest rate of 3.875%.

Approximate loan amount                       Monthly P&I                          

$212,659                                                           $1,000

$255,190                                                           $1,200

$318,988                                                           $1,500

$382,786                                                           $1,800

Keep in mind that these prices are based upon the 3.875% rate for Owner-occupied properties, but the current Investment property rate is still a very low 4.625%. It's not unusual that, considering today's high rents and the depreciation tax write-off, an investment home can generate enough income to pay for itself. In other words, the Owner has a "free" home which can be held forever, or, can be sold at a profit when prices rebound.

So, there may not be any such thing as a "free lunch", but you can now buy a "free house".

Surprised, aren't you?

Call us at (719)598-3200 or (800)677-MOVE (6683).

WHAT ABOUT THE APPRAISAL PROBLEMS WE HAVE BEEN READING ABOUT ?

You are probably referring to the media stories about real estate deals that have fallen apart because of "low" appraisals. Here, again, the headlines don't tell the whole story.

The reason why appraisals can present a problem is that many homes currently on the market are overpriced, either because of inadequate market research by the Realtor, or because the Seller insisted on an unrealistic listing price. Whatever the reason, the fact is that an overpriced house will not sell.

Because we do our research, have extensive knowledge of every neighborhood in the Pikes Peak area and work with our local appraisers, we have had absolutely no problems with appraisals creating closing problems.

Take a minute to think about all of these facts and then call us to discuss our local market, the outlook for real estate in the Pikes Peak area, the opportunities for acquiring your next home or investment property or any other questions you might have about Real Estate in general. Just dial (719)598-3200 or (800)677-MOVE (6683).

We're looking forward to hearing from you. 

NEW MAYOR INITIATES AN "UPDATE EMAIL" TO KEEP US INFORMED

Colorado Springs Mayor Steve Bach has introduced a free email report to keep us advised of the status of the city, budgeting problems and priorities, etc. To see a copy of the recent report, Click here. Or, to get on the mailing list, send your email address to:  stephenbach@comcast.net.

Great idea, Steve !!!

HOW WILL THE CREDIT DOWNGRADE AFFECT MORTGAGES?

"Not much", says Lawrence Yun, Chief Economist & Senior Vice President of the National Association of Realtors. Mr. Yun says that mortgage rates might be impacted by 30 basis points at maximum by the recent S&P downgrade of the U.S. credit rating. He states that it is also possible that the downgrade might have absolutely zero impact, if global bondholders do not care for S&P's opinion.

In a statement issued on August 8, 2011, Mr. Yun points out that, "A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer".

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 39 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

Just click on the icon at the top of this email to listen to my podcast for this month .

LATEST SALES AND LISTING STATISTICS

 To see the latest Sales and Listing statistics from the Pikes Peak Association of Realtors, Click Here

JOKE OF THE WEEK

"How to Succeed in Business" Advice from an Investment Banker

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The Banker asked how long it took to catch them. The Fisherman replied, "Only a little while." The Banker then asked, "Why didn't you stay out longer and catch more fish?" The Fisherman said, "With this I have more than enough to support my family's needs." The Banker then asked, "But what do you do with the rest of your time?" The Fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and I could help you. You should spend more time fishing; and with the proceeds, buy a bigger boat: With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor; The next step would be to open your own cannery. You would control the product, processing and distribution. Obviously, at that point, you would need to leave this small coastal fishing village and move to the city, where you will run your ever-expanding enterprise."

The Fisherman asked, "But, how long will this all take?" To which the Banker replied, "15 to 20 years." "But what then?" asked the Fisherman. The Banker laughed and said, "That's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions." "Millions?...Then what?" The Banker replied, "Then you could retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

This story illustrates the truth of the old saying, "Give a man a fish, and he will be able to eat for a day. Teach a man to fish and he will be able to sit in a boat and drink beer for the rest of his life".