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- The rise of the do-it-all risk manager | News | Strategic Risk
Be careful. Be careful.
28 August 2013.
"Senior managers need to be advised on how to compete and succeed, and the risk managers should be there to show them how to take the right risk. Not the high risk, the risk that means you can lose everything, but the risk that might give you the edge you need."
Read the source article …
- How landlords can steer clear of bad tenants – The Globe and Mail
By Shamon Kureshi. Sep. 03 2013, 6:00 AM EDT.
… selecting the right tenants is the most important step in the real estate rental business. Landlords who can master this skill will succeed in the business, while the opposite is also true, unfortunately. Bad tenants are the number one reason for landlords leaving the industry and selling their properties in search of greener pastures.
… Landlords who screen their tenants properly will greatly reduce the risk of future loss, maintain their reputation in the greater community without blemish, and not be constantly stressed about their rental properties.
Here are three tried and true methods of selecting the best and most qualified tenants and learning ways to avoid costly disasters. …
The article concerns Canada but has some strong overlapping applicability for US landlords.
Please note the absence of credit checks and other background checks, specifically criminal. There are strong restrictions in Canada concerning these. Verify the provincial/state laws first. California, for instance, has similarly strict, pro-tenant laws. A national background-checking firm may be your best bet, though none is foolproof.
- Pimco Predicts Mortgage Bonds to Get Worst Slump since 1999 – Zolmax
By AbbySmith. Sep 1st, 2013.
Pacific Investment Management Co. led other investors in preparing for the time when the Fed starts to scale back its stimulus when policy makers meet next month. They speculate that the Fed will make the move even with the decline in home sales and the slowdown in property appreciation.
If they do, they'll be sorry.
Read the source article … http://zolmax.com/pimco-predicts-mortgag e-bonds-to-get-worst-slump-since-1999/10 3828/
- Recent Data Screams Trouble Ahead for Housing "Recovery" – Yahoo! Small Business Advisor
By Moe Zulfiqar. Mon, Sep 2, 2013 10:50 AM EDT.
Home buyers had a good incentive to get into the housing market in 2012 because of low mortgage rates. Consider the standard 30-year fixed mortgage reported by Freddie Mac: in July of 2012, it was 3.55%, and in December, the rate went as low as 3.35%. (Source: "30-Year Fixed-Rate Mortgages Since 1971," Freddie Mac web site, last accessed August 28, 2013.)
Fast-forward to July of this year: rates have increased more than 23%, standing at 4.37%. Those who are looking for a home are driven away from the housing market by rising mortgage rates, making homes less affordable.
That said, I agree the rates are nowhere close to what they were back in the 1980s, but they have shot up really quickly in a very short period of time. You also have to consider that home buyers in the U.S. economy are still in trouble due to the number of low-wage-paying jobs and the general increases in prices.
Adding to the worries, the inventory in the U.S. housing market also continues to increase. In January, the U.S. housing market had a 3.9-month supply of homes. Fast-forward to July, and this number has increased 33% to 5.2 months. (Source: "Monthly Supply of Homes in the United States," Federal Reserve Bank of St. Louis web site, August 23, 2013.)
At the very core of it, this is simply an issue of supply and demand.
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