HSBC, one of the world’s largest banks has announced that it has suffered a total loss of more $17 Billion making it one of the worst hit financial institutions by the financial woes that the US is currently facing. The company says that the loss is high but gains in the Asian market have helped a lot in easing the pain. The banks profits rose by 20% from last year allowing it to survive the extreme pressure placed on them by the sub-prime lending woes that have hit the US financial market. Their problems began whe they opted to buy out one of America’s leading lending firms a short time ago leaving them ripe for the taking and with the said huge losses in therms of their global financial markets. Mainland China is one of the biggest open markets and Asia are proving to be their apples and are hoping to move more investments out of the US into other promising areas. They are maintaining some of their assets in the US but mostly due to allow them to maintain a steady share of the market in the said country.
There are some ways to make sure your money works for you. Investing this is often a smart and advisable step. There are many ways to invest money. Some choose to look at the financial sector for this but not everyone is comfortable doing this. What a lot of people do is invest their money in property. You might think that this is not a great way to invest considering the real estate market but this is on the mend so more and more people have begun to go this way again.
There are also a few basic tips when investing in real estate. There are three basic things you can look at in order to know if you are making the right decision in investing in property. Take a look at price. Of course, where prices are high, this is an indication that the place is desirable. You can choose to buy there or look at nearby places that will have lower prices. These may rise in demand because of proximity and cost. Look at taxes- lower taxes are always better. Then look at schools. How well these are doing is an indication if an area is good or not.
Lenders are finding it very hard to recover from the financial crunch and so do the previous owners of houses that have been foreclosed. We have seen this in the past months, that people are turning to desperate measures to assure nobody else benefits form their foreclosed homes. They trash it, some turn to arson and other crimes that render these houses un-sellable or in need of major repair for them to once again become appealing to sell. These cases are on the rise and arson being a crime is having more and more houses being razed to the ground by fires their previous owners have initiated. Call it frustration or call it desperation, it shows the true effects of the financial problems we are now experiencing that is bringing out the worst in some of us.
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A lot of house buyers, especially first time house buyers are quite shocked to find that giving the downpayment is not the only cash out requirement. Other expenses include application fees, background and credit checks on the borrower and prospective house inspection fee. Some banks, depending on the area, refer to the last three items mentioned as appraisal fee which is non refundable. Another expense is the closing fee which may or may not involve the following: prepaid interest or points, application and appraisal fees, recording and attorney’s fees, survey, title search and insurance, first month’s homeowner’s insurance, transfer taxes. There is also what we call the “operational cost” of owning a house. On top of your monthly amortization on the house itself, you have the basic utilities, property taxes, repairs and maintenance services like garbage disposal, shovelling snow, gardening and landscaping services.
The Census Bureau in a report has shown that the volume of vacant houses that are coming up for sale is at a high of 2.9% of all US homes and that figure excludes rental properties. The last highest level was recorded way back 1956 and the figures are sending shivers to homeowners as they too may lose their homes in the coming months. Once exclusive properties have been turned into regular homes with prices hitting rock bottom and much of their allure gone. Doing the math, that amounts to a total of 2.28 million properties that are vacant and for sale in the whole United States from 2.18 million from the last quarter of last year. Global economists are finding the figures quite worrying and they are keeping a close eye on the matter. Figures of low house sales that palaces it at a 16 1/2 year low isn’t helping and people are truly worried. Construction firms who have been hit have cut back on their work in hopes of getting the housing industry to catch up are having to cut back more to remain in business.
Beaches as a few of the most accessible places in the world where a person can pour his soul, reflect on his travails in life, and realize his goals and dreams. There is something in the waves of the sea that makes the beach a venue of peace and tranquility for all who are troubled and confused, wondering how they will put things back together. Such gifts of nature are actually close in the Florida Panhandle, only a drive away on Route 30A, where beaches of about three can be reached on the long stretch of the Gulf Coast. The Rosemary Beach, Alys Beach, and SeaCrest Beach, Florida all offers a haven for everyone who would like to feel the calming breeze of the waters or watch the captivating sunset.
Along with the beach, resort owners have also created perfect lodging and accommodation that would give an unforgettable experience in spending some time close to SeaCrest Beach, Florida. You may spend some time alone just in case you need a break from the pressures of everyday busy city life, or you can bring a friend along to share those life-changing moments that bring about change and reformation. It may be a bit too farfetched and exaggerated to think that this would be the real peaceful benefits of the beach, but it has been proven so many times that its waves, its rustling sound, and its cold calm breeze cause a chaotic person to be serene, quiet, and more focused. Nature has its way of helping people move on and change for the better.
In an unprecedented move by the White House, New York was compared to New Orleans as one of the cities who would benefit the tax cuts proposed by President Bush to alleviate problems in the real estates business. The said proposal calls for the reduction of taxation as part of the federal government’s move to help recovery during disaster situations and is seen as the boost the industry needs to alleviate uncertainties caused by past mortgage interest wild up’s and down swings. Industry analysts are still awaiting concrete proof that such a move is underway and that it would help boost buyer confidence in the said business area.
Mild improvements in development spending has been noted in the US which may signal a slight improvement in the overall commercial real estate business. Many development projects have been put on hold as the economy slid into recession with millions losing their jobs in the construction industry. The effects of the economy has reached far beyond the borders of the US with the world slipping into recession as the markets tumbled affecting most global industries. Continue »
Many are asking why the hell this happened in the first place, the housing market has suffered most from the sub-prime lending money problems. Existing house sales are up a notch but still not as good as it used to perform. People inflate their house prices when selling due to expected haggling during price negotiations. The new housing market is still in a slump and certain areas have almost no house sales due to insurance pullouts as they reel in their lines to cut back on losses. More is expected of the housing market, just hope it’s good rather than bad. Two insurance carriers have already pulled out of Katrina hit areas and even in Tornado alley. What’s next, time will tell. The next posts will bring the latest news and information from the house market from the experts themselves.
The unwillingness of the Federal Reserve to signal another round of rate adjustments, maybe due to the utter ineffectiveness of such measures to correct the ailing economy. Mortgages that remain unpaid are on the rise and more and more people sent to the streets. With such high demand for rental properties there is little left for the hundreds of thousands who are still losing their homes to get decent quarters. It may take time for the economy to heal, but there is a more urgent problem at hand and that is people are growing desperate during these down and out times of the economy.