Living green these days is becoming the norm. Austin has been a city that has embraced the concept of conservation and living green. Many local builders now offer green alternatives for building materials as well as appliances. In keeping with this attitude, new Austin business resident FTL Solar has announced $15 million in investments for PowerMods, a 20×20 tent-like structure run strictly on solar power. The company has stated its goal for the year is $40 million in investments.
The PowerMod can be used in a variety of ways, including as disaster relief shelters and remote medical stations. The military has also found uses for these structures. Each module can be used alone, or combined with hundreds of others. The power generated can either be stored for future use, or can be used to run computers, lights and radios for varying times. Last week, the company also introduced the PromoMod, which has a secondary purpose of advertising. FTL is hoping these tents will be used at outdoor fairs and markets as a way for businesses to promote themselves while caring for the environment. Formerly headquartered in New York, the company moved to Austin last month.
FTL continues to receive grants from various sources. With a specific goal in sight, the company hopes to bring relief to many with these environmentally friendly modules. The company was formed two years ago as an offshoot of FTL Design Engineering Studio as a way of promoting green living. Austin is the perfect city for the company to reach its funding goal.
Overall, the state of Texas has done well during the national economic crisis that began last year. The housing market in many cities, such as Austin, has dipped a bit, but not nearly as bad as in other states. The unemployment rate is still lower than other states as well. Of course, Texas has not been immune to it all. A recent report shows a definite decline in commercial investments from last year.
The latest issue of Southwest Economy, a publication by the Federal Reserve Bank of Dallas, states that by the end of August this year, overall commercial sales stood at about $14 billion statewide. Last year during the same time frame, actual sales were above $31 billion. The report also states that commercial real estate, including office space and retail, are down by 54%. The credit crunch and recent Wall Street woes have been blamed for this decline. Due to the credit crisis, lending practices are changing. These days it is harder for everyone to achieve the credit necessary for buying a home, let alone invest in commercial real estate. Investors are seeking higher risk premiums which will also affect the economy in Texas.
It is a difficult time for our country, and Texas cannot remain unaffected by the national economic health. Remember, though, that throughout this ordeal, that there are many factors still keeping Texas above other states. The housing market and employment rates are still steady, even if declined. There are still many companies moving to Texas. Though it may be another year or two before most experts believe the economy will start to really steady itself, Texas remains a good investment state.
Austin Investors Interests LLC, a local group that monitors the market in Austin, has projected a slowdown in apartment rentals within the first two quarters of next year. There are more than 12,000 apartments expected to be built during that time. During this last quarter, more than 2,500 were added to the market. These complexes will be in and around downtown, making them convenient to work and shopping. Occupancy has declined, and with so many new options coming up, the study projects it will continue.
The previous quarter shows an occupancy drop of 94.1% to 91.4% from the same quarter last year. Since the quarter includes the months of August and September when many college students are returning to the area, the drop has caused some concern. Many property managers are adding incentives to rentals in the area, including free rent and possibly discounts. Some are offering extended leasing options to reduce the rate of move outs during the year. The average rental is currently $821 a month. With the housing market as it is, many homeowners are choosing to rent their home as opposed to selling, which has also helped add to the slowdown for apartments. Some feel that metro Austin is setting itself up for an immediate downturn in occupancy rate and predict an overall decrease in rent of 3-5%. The job market here has remained steady, but still slow, which will also affect the rates. The next twelve months will be tight in Austin as the city works to fill all the new apartments.
The mortgage industry is full of confusing terms and jargon. Many of the terms apply directly to the forms of loans. The Loans are often referred to by shortened acronyms, but not all. Some are simply put, but not clarified by eligibility. Two most common terms are Government Loans and Conventional Loans.
Government Loans - any mortgage insured by the FHA, or VA, or RHS constitutes a government mortgage. This includes loans to veterans, and home loans available through the rural housing service.
Conventional Loans - any mortgage financing that comes from the traditional lending institutions. This would include any loan made by a bank, mortgage company, or nontraditional owner financing.
So that sounds simple enough right? It should be, unfortunately many of the large mortgage brokerages and companies fail to explain this very simple point, which will lead to some confusion down the road. To further elaborate on some additional options and terms related to loans we have included the following terms:
Assumable Mortgage - A mortgage can be assumed by a buyer once they have qualified for all requirements made by the seller’s mortgage company. This is completed at the time of sale.
Balloon Mortgage - This is when a mortgage is written so the payments are steady for a specified period of time, and at a future date requires the remainder of the total paid in full. An example of this would be a 30 year amortization of a loan that comes due in 15 years. Payment until the 15th year may be around 500 a month, however on the date determined the remainder of a 100 thousand dollar loan becomes due in full.
VA mortgage aka VA Loan - a mortgage insured by the Veterans Administration. This applies to qualified veterans only, and encourages private mortgage lenders to write loans for military and former military personal.
The Federal Reserve has recently reduced interest rates to a new low of only 1%. While this was done with the obvious hope of slowing an economic crisis, many feel it may not be enough. Some think it may actually serve to further hurt the economy. The possibility was left open for even lower rates in the future. Does this reduction actually help the economy?
The rate is currently as low as it has ever been. Never before has it been lowered to .5%, which seems to be an option for the Reserve if it feels it is necessary. Certainly, there has never been a 0% rate. That would mean banks are loaning money for free. How could this help the economy? Why would banks loan money for homes or education if they would not see any return on that investment? At this point, Americans are as afraid of a recession as they are of losing their jobs. Paychecks have been smaller and many nest eggs have been depleted. Even if rates are lowered at this point, most Americans are saving every extra penny they have, not looking for more debt. Consumer spending has been reaching new lows for the last couple of years, and is expected to come out below the norm for the July to September quarter. Lowering rates will most likely not encourage more spending. House prices are still dropping; the unemployment rate is still rising. “The economic damage of the financial panic has already been done, and the Fed is trying to limit the damage as best it can” predicts Mark Zandi, chief economist at Moody’s Economy.com. At this point, only time and careful financial planning will lead us out of this recession.
Purchasing a home will most likely be the largest investment made in a lifetime. It is a large decision that requires a lot of research and care. The two most basic factors encompass pretty much all the smaller details that need to be considered when deciding on a home. Those factors are the neighborhood and, of course, the potential house itself. By focusing in these major choices, you will be able to narrow down the list to what is best for you.
The neighborhood includes things such as quality of schools, your morning commute, and the overall appearance. Remember the broken window theory? Drive through the neighborhood and see how your would-be neighbors treat their properties. If the houses unkempt, perhaps you should be looking elsewhere. Consider the type of education you want your children to have. How close will you be to the school you want them to attend? Take a drive from the neighborhood to your job to determine if it is a decent trip. When you find the perfect neighborhood, it is time to find your dream home. Searching can be fun, but only if the necessities are already there. Determine your house size (number of rooms and bathrooms) fit your lifestyle. Add in any features you can’t live without, such as a fenced in yard or a pool. Look only for the homes that match your specific criteria. This will lessen the time you find visiting homes that don’t fit what you need. Take all of these factors into consideration to make your home search smoother and your new home perfect.
Round Rock is not just a suburb of Austin. It is a community that has flourished amid the recent economic woes. The schools here are top notch and the cost of living is still reasonable. It is home to some big companies, which helps to maintain a low unemployment rate. Residents of Round Rock consider it a town that would be a good choice to live, no matter who you are.
Founded in 1851, and later named for a smooth rock in the center of Brushy Creek nearby, Round Rock has made it to the top of several lists such as best place for young people and best place for relocating families. Dell has headquarters here supplying about 9,000 jobs. The unemployment rate as of early 2008 was 3.6%, at a time when nationally it is more than 5%. The median home price remains around $250,000. Business Week named Round Rock as one of the best areas for real estate bargains. The city itself boasts many shopping attractions, including an outlet mall. Sports are another big attraction here. Nolan Ryan owns the Round Rock Express, the city’s own minor league team. Parks are maintained beautifully, leaving a lot of room for residents to relax and enjoy nature or golf.
Those who call Round Rock home love it for all it has to offer. There is a small town feel to this city that has all the amenities. Commutable to Austin, many have chosen to live here for this community feel. The future looks bright in this city.
This is often approached on real estate blogs, and by real estate agents because it is the cornerstone of the residential home buyers market. Far to often before the collapse this was untouched, now people are seeing the value in the clarity provided. This is an extension of the wisdom drawn from the market crisis, and a reminder is never out of style or excessive.
It is time to look for a new home. This is an exciting time, but can be stressful. It is important to know where you stand financially before starting the endeavor. The most important thing is to be sure that you are able to afford your new home. Remember when looking for a loan, it is important to not only provide information of your current income, but previous financial history as well.
There are many factors that will be used to determine your eligibility and amount of loan. The first thing to collect should be any pay stubs you have available. Most institutions will want to see the past two years at least of income. These stubs will also show proof of employment. It is easier for someone who has a steady employment record to receive a loan. If you have had many job changes, be prepare to explain why. Bank statements are also looked at to show proof of savings and to determine any past history of bounced checks. Save all of your tax returns as added proof of income. This is especially important if you are self employed or own your own business. The lender will also be interested in any investment portfolio you may have. If you are receiving alimony or child support, this can also be added to your income. Make sure to have the court documentation of amounts received. We all know that your credit report will be examined as well. This report will list all current long term and outstanding bills, as well as your payment history. Having this information with you when you are ready to apply for a loan will help to speed up the process.
The Austin area has been recognized nationally for staying strong among the mortgage crisis. Median house prices have remained fairly steady in area such as Round Rock. The job market has remained healthy here, creating even more security during a tough economic year where everyone is concerned for their jobs. Companies are still moving to Austin, thus keeping a steady demand for houses. While many builders have slowed down a bit, the supply is still readily available.
Of course, Austin has not been completely impact free. The housing market has slowed down a bit. In September, just over 1,800 homes were sold in and around Austin. According to data maintained by the Texas A&M Real Estate Center, this is down about 10% from the same time last year. The median price for a house in Austin is around $183,000. This is a small increase from last year. It seems this is exactly how Austin has fared so well. Real estate markets are governed by the basic supply vs. demand. Most local builders have decreased their inventory to about six months. This is considered a good amount for a solid market. Housing prices have never exploded in Austin, which is what has happened in other areas of the country affect badly by the mortgage issues. This small, but steady, increase has been leveled with steady employment rates. What this creates is an area where the real estate market can still flourish. The Austin area has made it to the top ten of several studies as one of the best areas for both housing and job growth.
Living green these days is becoming the norm. Austin has been a city that has embraced the concept of conservation and living green. Many local builders now offer green alternatives for building materials as well as appliances. In keeping with this attitude, new Austin business resident FTL Solar has announced $15 million in investments for PowerMods, a 20×20 tent-like structure run strictly on solar power. The company has stated its goal for the year is $40 million in investments.
