News Alerts, Sept. 8, 2013, Evening Edition, 4 New Articles, Real Estate +, Don't Miss Them

Linking ≠ endorsement. Enjoy and share:

  1. The Rules: Single Family-Rental Investing

    The list of rules provided on the linked page is actually quite good.

    The profit potential in single family homes for investment has been a consistently good long-term investment. They offer investors the opportunity of high loan-to-value mortgages at fixed interest rates for 30 years on appreciating assets, tax advantages and reasonable control that other investments don't offer.

    Last year, Warren Buffett said that if he had a way of buying a couple hundred thousand single-family homes, he would load up on them. Blackstone group L.P. (BX) has now purchased over 30,000 homes and American Homes 4 Rent (AMH) has more than 19,000 for rental purposes.

    Individual investors actually have an advantage over the institutional investor but if they are not familiar with rental real estate, some basic rules could be very helpful. …

    Read the source article … http://www.betterhomeowners.com/post.asp x?id=aRER535R0E2t_F3U6qcDxw&A=%7BProfile .Id%7D


  2. Huge Divergence Between the Velocity of Money and S&P Shows What Has Really Recovered During This Cycle (Part 1) Huge Divergence Between the Velocity of Money and S&P Shows What Has Really Recovered During This Cycle (Part 1)

    … proof that the Fed's QE program and the so called "wealth effect" hasn't done much for the real economy.

    The Fed money has gone into stocks, but the companies raise funds via stock sales. Granted, not all of the money has gone into new issues, but stock companies don't always simply transfer the funds they raise via stock issues to higher salaries, bigger bonuses, and larger dividends. Many (far, far from enough) actually do the smart thing and plough the money into R&D and such.

    Read the source article … http://www.distressedvolatility.com/2013  /08/economic-charts-velocity-fedfunds-s px-base-depression.html


  3. The Employment Recovery EXPOSED: Full-Time vs. Part-Time and Temporary Jobs (Part 2) The Employment Recovery EXPOSED: Full-Time vs. Part-Time and Temporary Jobs (Part 2)

    We've been seeing posts around on the Internet suggesting that Obamacare is not responsible (at least yet) for the shift to part-time employment. Those posts tend to make sense. We've also, however, seen a post that suggests that people want part-time jobs.

    Well, of course people want part-time jobs when they are out of work and their unemployment benefits have run out. It is also true that a certain number of people want part-time work, period, that is, regardless of whether they could easily obtain full-time work.

    It appears clear from the data, though, that the real reason there are so many part-time and temporary jobs now is not because of either Obamacare or that people would rather work part time than full time.

    This link is a Part II of the immediately preceding link we provided.

    … it is well known that the U.S. has a structural unemployment problem. I'm going to chart out the data so you can see the long-term trends visually. In the chart below, you can see that the number of full-time jobs recovered a bit since the great recession ended, but it's still well below the 2007 high. On the other hand, the number of part-time jobs and temporary jobs both made new highs recently.

    Read the source article … http://www.distressedvolatility.com/2013  /09/full-time-jobs-part-time-and-tempor ary-analysis.html


  4. Services Set to Take Largest Share of GDP in Asia – Bloomberg

    One effect [of the service sector coming to dominate more and more] will be less emphasis among Asian governments on currency levels, which are key to export-based economies.

    "Interest rates will become more important than exchange rates," said Chua Hak Bin, an economist at Bank of America Corp. in Singapore. "When an economy gets richer and the trade component becomes smaller — the likes of the U.S., Japan and even Australia — they don't have a problem letting the currency slide and yet there is hardly an impact on inflation."

    Asia is following the same path the U.S. took in the last century. At the end of World War II, service work accounted for 10 percent of U.S. non-farm employment, compared with 38 percent for manufacturing. Now, it represents four out of five jobs and contributes about 68 percent of the economy, according to government data.

    Higher salaries lead to increased spending and borrowing, with a growing number of people able to afford insurance policies or savings plans for the first time or invest in property, said Amit Arora, head of consumer banking at Standard Chartered Plc's Vietnam unit in Ho Chi Minh City.

    In developed nation, however, low-paying service work pays less than low-paying manufacturing work. On balance, the loss of manufacturing jobs has not been good for wages. It has been good for the environment within the US but at an environmental cost globally.

    It's been argued that the US should have retained its manufacturing base while boosting its environmental standards. What's your view on that?

    Read the source article … http://www.bloomberg.com/news/2013-09-03  /asia-services-set-to-exceed-manufactur ing-as-gdp-share.html


If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.

Subscribe