Month: September 2009

It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher. Now, the cost of mortgages is coming down. If you’re buying a home or renewing a mortgage, it’s time to review your options. Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it’s possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.

Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.

“Variable-rate mortgages are all over the map right now,” said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. “We’re seeing them right in the area of prime with some lenders.”

An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.

Can variable-rate mortgages fall back to their pre-crisis lows any time soon?

“Definitely, 100 per cent, no,” said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). “Could they get a little below prime? Definitely.”

Okay, it’s strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you’re got some thinking to do if you’re buying a home or renewing a mortgage.

The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it’s expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today’s five-year mortgages are.

“The risk is obviously that rates go up a lot more,” Mr. McLister warned. “Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four – why not?”

Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there’s no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.

An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you’re willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.

Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you’re renewing in one year’s time, you’ll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.

Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you’re not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.

Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.

The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they’re not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.

Mr. Siegle said over half of his firm’s clients are locking into a fixed-rate mortgage right now. “You can’t ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, ‘yeah, they are.’ ”

Source: http://v1.theglobeandmail.com/servlet/story/LAC.20090915.RCARRICK15ART1924/TPStory/TPBusiness/#

One of the most useful qualities a great Realtor can have is being RESOURCEFUL. That being said – here is one of my greatest resources : The Real Estate Residential Newsletter. If you are a Realtor and you are reading this – you’re welcome! If you are a regular civilian like I suspect ( 😀 ) then you will find this little gem very handy when trying to figure out how you’re life is fitting into this big Real Estate game. Make no mistake – you are involved, whether you realize it or not.

Here it is!

http://www.renx.ca/Residential/index.html 

Happy Learning!

When I look at the recent news images of the houses hit by tornadoes – roofs torn off, framing joists and trusses scattered like toothpicks across backyards – I have to ask myself: Why aren’t we building better? Why aren’t we building houses that will withstand severe weather, protect the families who live in them, and last?

You’ve heard of the three little pigs, who built houses out of sticks. The big bad wolf had no trouble blowing those houses down. But he couldn’t beat the brick house. (And we’re talking a solid brick house, not a stick-framed house with a brick facade, by the way.)

I get it that a F5 tornado is powerful enough to tear up pretty much everything in its direct path. But F5s are rare. And a properly built house should withstand a smaller tornado like the more common F1 or F2, which is what struck last week north of Toronto.

I think it’s possible to design and build a tornado-resistant house. Construction built to seismic code is common in areas prone to earthquakes. I’ve built a house in Los Angeles that complied with it. These buildings are designed based on many years of experience in seismic areas. So, why isn’t it done in areas prone to tornadoes?

If you live in tornado alley in the U.S., or even in Canada – we get an average of 80 tornadoes every year, believe it or not – you need to build smarter.

Basically, a tornado is wind blowing in a cyclonic direction, and that wind exerts an upward force that lifts up whatever it encounters. The path of a tornado is unpredictable – it can move fast and erratically – but the type of force it exerts on a building is not. Neither is the kind of damage it will do. The upward force tears off roofs or floors, or lifts the house off its foundation. That’s why mobile homes are so vulnerable – they are tossed around like toys.

The force of the wind will find the weak points in the house’s construction. The roof flies off – or even the entire floor – taking the homeowners with it. Or, the roof is torn off, and the exterior supporting walls collapse because they are now more vulnerable to lateral wind loads.

But where a house is bolted down to its foundation, and the roof is properly anchored to the walls, it might be damaged but it won’t be destroyed. If the same anchorage that’s used in seismic zones were mandatory in tornado zones, a house could survive an F2 with minimal damage.

And it wouldn’t cost much. What’s the cost of a few anchors and bolts and ties? Of glue and screws, instead of nails? I guess builders play the odds; the likelihood that your home will ever be hit by a tornado is very small, so they don’t factor that possibility in when they are designing and constructing homes. Especially when that would be building above code.

I’d love to design and build a house that would piss off a tornado. I wouldn’t build it out of straw or sticks. I’d build it out of bricks or concrete – designed low to the ground. And I’d anchor it and do it above National Building Code standards.

You think of heavy rain when you think of hurricanes, but most of the damage is caused by wind. So, the exterior envelope of the house needs to be built to withstand 200 km/h winds. That’s not that hard to do, believe it or not. Choosing the right building materials, and assembling them properly will make all the difference. Don’t just nail sheathing to the frame – glue and screw it and you’ll increase the strength and wind resistance dramatically.

Hurricane ties are required by code in areas hit by hurricanes in the U.S. (though I’d bet they aren’t in the Atlantic provinces, where they are often hit by tropical storms), but they won’t do the trick alone. You’ve got to use them as part of a properly designed wall assembly. The whole wall structure has to be tied together – from the roof and top plate through to the sill plate, all the way down to the foundation.

Keep your home from being blown away by the big bad wolf.

In my experience rebuilding after Hurricane Katrina, I was shocked to find most of the houses that were destroyed weren’t on footings, they were just sitting on grade, or on concrete blocks. Why is that? It doesn’t make sense. A house is not a boat, it’s not supposed to float. Anchor it. Secure it to the ground so it doesn’t float away in a flood.

And, why wouldn’t you elevate the structure above the flood zone to protect both the residents and their belongings? And while you’re at it, build with materials that can get wet and will dry out – without moulding – after the storm passes.

What about building a house that won’t burn down? When I was in L.A. a couple of years ago, I could see the wildfires spreading along the horizon, taking street after street of homes. You’ve seen the news footage in the aftermath of these fires. What’s left standing? Chimneys, the concrete, brick and stone structures. So why aren’t they building houses from concrete? Yes, the furnishings could burn, but the basic house structure will still stand. And, since concrete is non-combustible, it’s not going to allow the flames to easily spread from house to house.

So why aren’t we building geographically or regionally appropriate houses?

I think that smart building of the future will take into account regional climate and geography. Houses need to be built sustainably, and in a design appropriate to local conditions.

Thoughts?

Original Source: http://www.nationalpost.com/story.html?id=1936618

I’ve heard that hemp has a ton of great uses – however this one is right up my alley. It is now being used to make concrete-like bricks that buildings can be built from. Carbon Negaive you say? huh? Basically the hemp locks up more CO2 in the growing and harvesting phases than it does in production. Have a read for more info, and check out the pics!

http://www.inhabitat.com/2009/08/24/hemcrete-carbon-negative-hemp-walls-7x-stronger-than-concrete/

Despite the billions of people we have on earth today, it seems that there is a strong lack of people who can inspire, awaken and motivate others to see their true potential. Not only that, but there is an ever-decreasing number of people who have been able to forge their own values and instead the majority just follow the social norms.

The youth of today, myself included, tend to lack the respect for others and the gratitude for life our forefathers once had. Thankfully, there are people out there, alive and passed, whose life stories can both inspire, and motivate.

In my post today I want to highlight efforts of bravery, courage and success; especially in times where a positive outcome looked unlikely.

I’m going to share some examples of will and determination that are a true model of manliness. It is my hope that each story will show you the real potential that we as humans have, and inspire you to make your own plight just as noble.

Dick Hoyt
Dick’s wife gave birth to their son Rick in 1962. During his entry into the world, Rick’s umbillical wrapped around his neck and cut off oxygen to his brain. His parents were told that their child would never develop properly and because of the incident, Rick has never been able to walk or talk.

When Rick was 13, his parents managed to save up $5,000 for an interactive computer so that he could communicate with them. One day Rick, who was in a wheelchair, expressed that he would like to participate in a long distance run to help raise money for a school friend who had been paralyzed. That event was just the beginning.

Dick Hoyt has since taken his son Rick on a gruelling 65 marathons and 216 triathlons, and at such a speed that they left healthy athletes in their wake. Why did Dick go to such efforts for his son? This quote should answer that question…

“When we got home from that race that night, Rick wrote on the computer, ‘Dad, when I run it feels like my disability disappears.’ So, that was a very powerful message to me.”

Aron Ralston
Like all men with a huge amount of courage in times of very serious matters, Aron Ralston downplays his bravery. He was a keen mountain climber who, in 2002, quit his job with Intel so that he could climb all of the “fourteeners” in Colorado.

On one such trip in 2003, he was on a solo expedition where a terrible event occurred. During one climb, a boulder had landed on him, crushing his forearm. He had kept the details of his trip to himself, so knew that nobody would be looking for him or know that he was in trouble.

He spent the next 5 days trying to move the boulder with no success. Because he thought the end was near, he made goodbye videos for his family and even carved his expected death date into the sandstone. It was at this point that he decided to try and amputate his own arm. And, using nothing more than a very blunt knife, that’s exactly what he did.

His story has become well known around the world and he now spends a lot of time giving inspirational speeches and sharing his wisdom.

“We’re all going to make mistakes, … Your mistakes are the result of choices you make. But, because we make mistakes, does not mean we can’t rectify that.”

Pat Tillman
In 2000, Pat Tillman was chosen by Sports Illustrated writer Paul Zimmerman as a member of his NFL All Pro Team. Tillman had just finished the season with 155 tackles, 1.5 sacks and 9 pass deflections. Not only was he an excellent player, he also stayed loyal to his team, the Cardinals, after being offered a $9m contract by the Superbowl winners, the St. Louis Rams.

Shortly after 9/11, Pat made the surprising decision to leave his multi-million dollar football career and join the United States Army. He was sent to Afghanistan after having been deployed in Iraq and this is where he lost his life on April 22nd, 2004 after being killed by “friendly fire”.

He is one of two active professional football players who left their careers and died in combat, he shares this in common with the late Bob Kalsu.

I believe that his friends’ description of him shows the qualities of one of the nation’s finest men:

“He’s one of the greatest guys in the world. No ego. No need for wealth. Just a great all around guy. We should all be like that.”

5 More Great Messages
We’ve now seen three examples of real men abundant in sheer mettle and tenacity. Following are five more examples that are each as inspiring and moving as the next.

• William Wallace – William was born in the 13th Century and is known for leading a resistance while the wars of Scottish Independence were in full flow. Today he is thought of as a national hero and was the inspiration behind a poem in the 15th century which later became the foundation of the film, Braveheart.
  

  “Every man dies. Not every man really lives.”

• Arnold Schwarzenegger – Arnold was chosen as “Mr. Universe” at the young age of 22 and went on to win “Mr. Olympia” a total of 7 times. He is also well known for his role in the Terminator movies and is currently the Governor of California.
  

  “For me life is continuously being hungry. The meaning of life is not simply to exist, to survive, but to move ahead, to go up, to achieve, to conquer.“

• Ted Williams – Ted is thought of as one of the greatest baseball players who has ever lived with 521 home runs and a .344 batting average. He was included in the baseball hall of fame in 1966. He also fought for his country as a pilot during World War II and the Korean War.
  

  “A man has to have goals – for a day, for a lifetime – and that was mine, to have people say, ‘There goes Ted Williams, the greatest hitter who ever lived.’

• Chiune Sugihara – Chiune was a Japanese diplomat who helped saved the lives of thousands of Jews by issuing them with visas so they could travel to Japan. His actions put not only his career on the line, but the lives of him and his family.
  

  “Do what is right because it is right; and leave it alone.”

• Liviu Librescu – Liviu was a Romanian teacher who survived the Holocaust. He was teaching at Virginia Tech when a gunman raided the school and killed 32 people. He helped save every one of his students, blocking the classroom door which the gunmen were trying to enter. He waited until every student had left via the class windows before falling with 5 bullets in his back.

  This is a quote from his son:

  “I walked through the streets today with my head held high because I have such a father.”

I like to think of these examples as a varied look at the true power man holds within. Hopefully the stories mentioned here can help you put life into perspective and see the potential that each of us has.

Source: http://www.dumblittleman.com/2009/06/8-inspirational-messages-from-manliest.html