Is 2009 a good year for buying a house

Is 2009 a Good Year for Buying a House

While some improvement in the economy and real estate market has been seen in the past couple of months according to the National Association of Estate Agents, struggles continue. In the latter part of 2008, both buyers and sellers were moving a little more, which many experts believe is due to low interest rates. Additionally, movement was also seen in the number of new homes coming on the market and the number of interested buyers.

While the current situation has been devastating to some, for first-time homebuyers, it has created an opportunity not otherwise offered. For a long time home prices were simply too high for new buyers but we now see almost 11% of homes sold went to first-time buyers. The same reports from 2008 show that real estate agents made more sales. This news was positive since the increase in sales was in December, which is usually a slow month.

The National Association of Estate Agents also indicated home prices increased only slightly and the number of falling rates had slowed down in some geographical locations. Other statistics include prospective buyers increased to 200 from 186 in December 2008 and agents with actual sales increased to 100 from 87. This means sales per real estate agent remained on a steady pace of six.

Then moving into the early part of 2009, reports came from the Financial Times specific to 2009 being a good or bad year to purchase real estate. A study was comprised of 50 top economists and the outcome was quite interesting. Of the 50, 60% said the purchase of real estate in 2009 should be avoided but the remaining 40% believed the opposite.

The reasons for each of the responses varied. For instance, some felt that buying property in 2009 would help the slow economy. Then, considering that interest rates are expected to stay low throughout the year and even decline at the end of the year, some people believe the lending process is still going to be difficult. Even with additional money to loan, especially if the government continues to provide assistance, buying versus not buying remained controversial.

Of the 50 economists, some felt that at the end of the year the real estate market will reach its lowest point. With this, homebuyers would be encouraged to start looking at real estate and even buying. However, of the economists that think that people should wait to buy believe prices are still too high when compared to current income. Therefore, the anticipation is that in 2010, the real estate will be much better than 2009. In fact, prices according to Capital Economics will fall 20$ more while Global Insight says 15% and JP Morgan believes 10%.

One particular economist is not as optimistic, stating his concerns are that housing prices will not reach affordability until the year 2014. The continuing fall of the real estate market is in part due to restrictions on credit and lending, high debt ratios, high rates of unemployment, and the stagnant economy. All those negative factors predict a declining real estate market for some time, beyond 2009. Because of this, potential buyers are hesitant to make such large purchases.

The bottom line is that this is a buyer’s market; people should not be in too much of a hurry to make real estate purchases. In 2009, unemployment hit incredible lows and with lenders still following strict lending guidelines, there is some concern. Now, in the situation when a person is transferred for a job or has gone through a divorce and must move, then buying in 2009 offers many benefits.

While the number of sales is low, because of unique situations, sales will continue very slowly. Even people interested in buying property as an investment or buying to flip and rent is a slow market. Experts are optimistic that a boom in real estate will occur once the recession has passed. As the supply of homes decreases, prices become more affordable, and lending institutions lighten up on loans, things will improve.

Real estate sold at auctions in 2009, as well as homes needing to be repaired or renovated are expected to go for low prices so buyers have ample opportunity of finding property that fits within any budget. Therefore, anyone wanting to buy a home in 2009 should put out a low offer and maintain ownership of the property for as long as possible.

Is your business making you sick

Is Your Business Making You Sick?

Our business environment could actually be making us sick. Think about it. We sit in the same chair in the same position for hours at a time. We breathe the same air in and out… in and out… get the idea?

On a hot day in summer the heat can be unbearable and if you have air conditioning that just makes things worse, by removing all the moisture from the air.

Skipping breakfast and eating on the move whilst answering the phone or on the way to the bank leaves our body in despair. The highs and subsequent lows in blood sugar levels make us hyper one minute and grouchy the next.

All the electronic equipment around us… from fax machines, mobile phones, printers, computers and monitors create an unhealthy electromagnetic field all around us.

Sorry for the doom gloom but take heart — with small changes we can counteract most of the above.

Start the day with a good healthy breakfast — nothing beats porridge and a nice cup of tea. Keep some fruit on your desk — nothing beats a banana for a mid morning snack. Hey don’t get me wrong, I am not saying that porridge, bananas & fruit are the only combination, but they work for me. I find that foods that release energy slowly keep me going all day.

Drink plenty of water — I know that we have heard this before but I feel that it must be repeated again. Water serves to remove the toxins from our body and helps our skin to stay hydrated. How much water is enough? A glass an hour is sufficient.

Move all electronic equipment that you can away from your sitting area. Does that printer need to be so close? Use a headset when talking on the mobile and buy an anti glare screen for your monitor. Hide all your wires. Not only are they a hazard but the also make our minds cluttered.

Stop being so intense all the time! When typing, caress the keyboard rather then hammering it so hard. Keep your monitor at eye level and get a cordless mouse and keyboard that you can move around to suit your posture. Buy a decent office chair with arm rests — did you know that if you have arm rests and use them, you reduce the pressure on your spine greatly.

By taking simple measures you can greatly reduce your chances of getting repetitive strain injury (RSI).

Stress is another major issue we all face. Computers not connecting to the internet, phones constantly ringing, email responses not arriving on time and far too much spam! Buy a decent spam filter and every time you feel stressed out go for a little walk. If you followed the advice about drinking plenty of water — you will help to alleviate stress, as you will be forced to get up and go to the loo regularly!

Taking regular short breaks will actually serve to make us more efficient and productive in the long term and cut down on the number of days we are ill. Enjoy your working day.

Just like marketing a garage sale

Just Like Marketing a Garage Sale

Anyone who’s started his or her own business (be it brick and mortar, online, even something as simple as garage sales on the weekend) will tell you that the most important aspect to keep your business going (and so you make profits) is marketing.

Starting out with something as simple as a garage sale, think about what types of marketing there are. Most often you’ll find sharpie-scribbled cardboard signs stapled to telephone poles with a big arrow pointing in the direction of your «business». Now, you might laugh and say that isn’t marketing, but in reality that’s fundamentally all there is to marketing. You have a product or service and you want people to know about it. Simple as that.

Continuing with the garage sale analogy, there are plenty of other ways you can market yourself. I’m sure you’ll tell your neighbors and friends. And maybe you’ll even post an ad in the PennySaver or on Craigslist. These are all forms of direct marketing.

Possibly the biggest factor to a garage sales success is its location. If you live in an apartment, you’re obviously very limited to how successful you can become. In an apartment complex there just isn’t very much room to display your goods. You can put up signs, tell your family and post bulletins, but they probably won’t do very much good if people can’t get to your business. Now, what if you lived on the corner house next to a main road? Granted, people don’t usually move their homes to have a garage sale (it’s usually the other way around), but this is another example of marketing; and it’s very direct.

Okay, so how else can you market and advertise your sale? Is there anything else you can do? Yep. There are still plenty of other things you can do. Your garage sale is going to top all others.

How about expansion? Talk to your neighbors and plan a group garage sale. Get your whole street involved and you’ll have turned your garage sale into an antique mall. Want to expand even more? Maybe you could start a website. Take pictures of everything and let people shop online and you can ship them their orders.

Now that you’re starting to get big, it’s time to get some press coverage. Call up your local newspaper and let them know what you’re doing on your street. That’s a free ad in the paper which means more customers and more profits.

By now you’ll have run out of things to sell, so it’s time to bring in a wholesaler. Look for companies that sell faux antiques and order in bulk. Give each house on your street its own product line. Build signs, decorate your lawn, put up twinkle lights and you’ll be a phenomenon.

Next up, hire a camera crew and record your own TV commercial. Play it locally first and then move it to cable stations. By now, you’ll have competitors. Other streets will want a piece of the pie. And now you’re back to square one. That’s what marketing is all about. Time to start something new!

How to raise your business capital

How to Raise Your Business Capital

Contrary to most people think, gathering your startup capital is not that hard. You just have to have the right ideas that you are sure can make you rich. Not just that, be sure you have established a good reputation and credibility — the most important things to get your investor’s trust.

So what’s the first step? Build a proper prospectus! Include curriculum vitae of your education, training, experience, and accomplishments. Also include personal qualities that might be counted as an asset to your potential success.

It might also help to include a list of all the various loans you have had and to where you used those loans. Do not forget your history in paying them off.

Explain in detail the purpose of that money. Since it is for a new business, you will have to show your proposed business plan, your marketing research, and projected costs. Also put the anticipated income, with a summary for each, for at least the next three years.

It will be best to base your cost estimates high and your income projections in minimal returns. Businesses, especially those only starting up, have their ups and downs. Doing your financial estimates this way will help you go through these ups and downs.

Describe your proposed business in detail. Explain its uniqueness and how it differs from other competition. Also putting the possibilities of an expansion will help catch an attention.

State precisely in your prospectus what your investor will get in return for using their money. Define the percentage of interest that you are willing to pay him, and the period when you will pay. A good example is what happened with my friend. He lent his money to a farmer for agricultural purposes. In order to pay, this farmer gives my friend a partial of his crops every harvest time.

Attract your investor. Interest and persuade him to lend you his money by spelling out in details the benefits he will get for investing in your business. If possible, give him proofs from your marketing research.

Now that you have a proper prospectus, you now know how much money you want and how to use it, and how you intend to pay it, here are the ways to look for investors.

ADVERTISE. Nothing beats proper advertisements. Include in your ad how much money you want. State the nature of your business and the kind of return that you are promising on the investment.

DIRECT SELLING. This is really not selling but I like to call it that way. You directly «sell» your business proposal to people. Host a party and invite your friends over. Explain the business plan, the possible profit, and the needed startup capital. Give each of them your created prospectus. You can promise to make them your partner in exchange for their thousand dollars investment to your business. But of course, you must first know the rules for this partnership.

NETWORKING. Sounds like selling products, too, but I also like to use this term. Try talking to your lawyer, accountant, or banker. Show them your prospectus and ask for their advices. In addition, you might as well ask them if they knew someone who can be a possible investor to your business.

INVESTMENT COMPANIES. Don’t forget that there are investment companies that were put up for this cause. Try looking for them in your local area and try approaching them. Show them your prospectus and explain to them the details of your business plan.

BROKERS. There are Money Brokers that will take your prospectus and do your job in finding investors. There are good brokers and not so good brokers. So since money brokers require payment, you might want to check them out first before releasing any money to them.

These are just some ways to raise money for your business capital. But this is just one part of it — getting money from investors. There are other ways to raise money, including garage sales, loans, and selling out your stocks. Either ways, it’s your choice. Choose something that you think will be best for you and your business.

How to handle poor performance — what if it doesn’t work out

How to Handle Poor Performance — What If It Doesn’t Work Out

What do you do after you have coached and counseled an employee and they still do not meet performance expectations or correct the behavioral issue(s)? It can be a challenge to decide if an employee is going to succeed in their role.

You can’t change a person’s effort or behavior…only they can. What you can do is give them: Clear performance expectations, effective training and provide them with a respectful work environment.

FORMAL DISCIPLE PROCESS

Some companies have a formal discipline process….verbal notice and then written notice indicating to the employee the seriousness of the problem. Both types of notices are documented and included in an employee’s file. During this process, an employee realizes that their job is in jeopardy and they need to make the necessary changes.

SUGGESTION

If termination is the recommendation, ask yourself…Are you asking for the same performance from all of your employees? OR do just not like this person? If your evaluation is based on personality, be careful because in the U.S. the employee can potentially have a legal case against you and the company. Keep your evaluations around performance that you have monitored and you will satisfy legal requirements.

MANAGER’S EFFORTS

Most managers give the employee several chances to solve the performance or behavior issue(s). If it is a performance issue, it may take a bit more time to solve the issue if they need to increase their knowledge. Behavioral issues should be resolved by the employee quickly….for example, lateness, sloppiness or negativity.

A manager faces several issues with a low performing employee. Besides not meeting the expectations of their role, the individual also affects the rest of the team. How are the other team members reacting to the individual’s low performance or behavior issue? Usually the team members are aware of the performance issues, though they may still react if you terminate the employee.

==>Here are some concerns managers express when termination is considered:

**You have given a lot of your energy to the employee’s success and believe if you just find the right motivator, the employee’s performance will meet standards.

**You have no time to find a new person. The cost of recruiting and training a new person is high. Heavy demand to meet business deliverables and you can’t avoid being short a person.

**How will the rest of the team react to the termination? If the individual has contacts with vendors or other external relationships, how will they react to the change?

DECISIONS

You can’t fix every employee issue. What you are required to do is managed the situation effectively to minimize the impact on the employee, the rest of the team and the business.

If the employee is not able to meet their job responsibilities, and you have coached and counseled them, the most respectful action is to move them out of that role. If you can find another role that suits their talents, then offer them the opportunity. If not, then you will need to address the issue and terminate the employee.

NEXT STEPS

Find out what your company’s policy is regarding terminating an employee. Small companies may not have a Human Resources Department, though they usually have legal counsel that can guide them. Though most U.S. states have «at will» employment laws, you are not an expert on employment law, so pass your documentation on for review and support with your decision.

==>Termination

Always refer to your company’s policies and procedures before terminating an employee. Here are some guidelines to help you through this process:

**Create the final termination document, setting forth the reason(s) why employment is being terminated.

**Review the employee’s file, records of prior counseling, verbal, and/or written warnings, and any other pertinent documentation with Human Resources/Legal.

**Decide when and where to hold the termination meeting. Select a private location, away from view by other employees. The best time for the meeting is at the end of the day to minimize interaction with coworkers both before and after. The middle of the week is preferable to a Friday, as the employee can immediately start their job search.

**Anticipate and be prepared for the employee’s reaction to the termination — are there security issues?

**Notify the appropriate department to secure the computer and telephone systems, security badges, passwords, keycards, and other company property.

**Make sure you have an Exit document in place so that you can forward to the appropriate people in your company.

**Plan for the employee to get personal items from the work area.

**Create a list of all people who will be affected by this termination and decide where the work is to go after the person leaves.

**Plan the message for notifying clients and employees who work with the impacted employee. This should be coordinated with Human Resources and/or legal counsel. It’s important that the message also is respectful to the departing employee.

CONDUCTING THE TERMINATION

**Arrange for a representative from Human Resources to be present. If you don’t have a HR department, make sure another manager or supervisor is present. Never do a termination alone.

**Stay focused on communicating the facts of the decision — do not let the discussion become personal. Focus on the issue and not on the person.

**Be ready for the employee’s reaction and let them share their reactions. Have a time limit in your mind, so you can help the employee move forward. Otherwise, they may try to talk you out of your decision.

**In some companies, the manager gives the notice and the reasons behind the decision. Then HR takes over and helps transition the employee out of the company.

**Do not allow for negotiation; emphasize that the decision has been made and it is final.

FINAL THOUGHTS

**Advise co-workers that the employee no longer works with the company. This should be coordinated with Human Resources and/or legal counsel.

**Advise supervisors and co-workers what the «company statement» will be for clients or others calling for the employee. (Usually inquiries go to Human Resources or one specific individual in your organization that knows how to respond to outside questions.) Even if the employee resigns, it’s important to construct a «company statement.»

**Communicate to all parties affected by this termination and let them know how the work will be completed going forward.

**Document the termination meeting and place all documentation in the employee’s file.

It’s difficult to terminate a member of the team, though it is your responsibility to handle the situation. Just remember to treat the individual with respect throughout the process.