Monthly Archives: September 2009

Buying home, condo or any other real estate in a market that is protected from a bursting bubble is every investor’s dream. Knowing where to look for these bubble-proof markets and how to identify them is crucial.

There are some important factors that investors should consider when searching for stable investments such as single-family homes, condos or any other type of real estate. Some of these factors include a fast growing population (which positively impacts the demand for housing), a solid and diverse economy (which impacts employment rates and subsequent demand for housing), rising incomes (which impacts buyers’ ability to purchase real estate), a developing infrastructure (which contributes to the appeal of a city or community), and restrictions on future real estate development (which limits future supply of real estate). Investing in real estate within communities that meet these criteria may prove to be more profitable than communities that are missing one or more of these factors.

A recent report by Business 2.0 Magazine identified U.S. cities that have consistently demonstrated price appreciation in the real estate market. The October 2006 issue of the Magazine identified the top 5 real estate markets that demonstrated an upward price trend over a long period time. The top-ranking cities were:

1. San Francisco, California
2. Los Angeles, California
3. Seattle, Washington
4. Boston, Massachusetts
5. New York City, New York

San Francisco topped the list with an average annual home price appreciation of 4.2% from 1949 to 2006. In contrast, the national average was 2.3%. Strong restrictions on real estate development and a limited geography helped push San Francisco to the top slot.

Los Angeles ranked second in the report. The average annual home price appreciation in Los Angeles was 3.7% from 1949 to 2006. Reductions in available land and increasing restrictions on further development helped pushed Los Angeles to the number 2 slot.

Home prices in Seattle, which was third on the list, demonstrated an average appreciation rate of 3.2% from 1949 to 2006. While Seattle made the top 5 list, recent easing of building restrictions may cause Seattle to fall out of the top 5 over the next few years.

Boston was fourth in the rankings. The city has seen annual home prices appreciate by 3% over the period from 1949 to 2006. A strong increase in per capita income contributed to Boston’s high ranking.

New York City follows close behind with an average annual home price appreciation of 3% from 1949 to 2006. A limited geography, large population, and finite number of properties contributed to New York’s high ranking.

While there is no guarantee that any of the real estate markets listed previously are truly “bubble proof,” the factors described above may help investors find the profitable markets and avoid “bubble” markets. Since the real estate market is constantly changing, be sure to seek out the services of a skillful real estate agent to help you navigate your next real estate purchase.

There are some myths about real estate agents, many of which are not so flattering. But when it comes down to it, real estate agents are not too out there, and there is a logical explanation to each misconception. Let’s straighten out a couple myths and facts.

Myth #1: They have big hair.

Fact: Though occasionally real estate agents do have big hair, most are regular people who get up in the morning just like you do, and go to work just like you do. Many real estate agents, in fact, are going bald due to stress related hair loss. Same with the fancy dagger-shaped manicures; in actuality, many real estate agents have bitten their nails down to nubs.

Myth #2: Real Estate Agents drive luxury cars while talking on their cell phones.

Fact: Itâ??s true that real estate agents are often trying to do too many things at once, but they like to be careful about it. And though real estate agents would like to make a good impression on you, more often than not they drive Hondas and Toyotas and hope that their hard work will sell you, not their Lexus.

Myth #3: Real Estate Agents know your area.

Fact: Just like normal people, real estate agents canâ??t know everything. Though they do spend a lot of time driving around town, they canâ??t be in all places at once, and they themselves probably have preferences for one neighborhood versus another. Make it clear to your realtor what kind of area you want to live in, and they can help you look within that section of town.

Myth #4: Real Estate Agents live outside of time.

Fact: Real estate agents have lives too, and those lives happen to take place in the same physical realm as yours does. While it might seem like they spend a strangely disproportionate chunk of time speaking with you, they are actually trying to be as time-conscious as possible, so that you can move more quickly into your home and they can move more quickly to helping their next client.

Myth #5: Real Estate Agents just want your money.

Fact: What real estate agents actually want is an easy life. They want to help you find a home you love, and they want to make their (often small) bit of commission off of it (and thatâ??s off the sale, not out of your pocket). They do not want your soul or your firstborn, just some patience, consideration, and a positive home-buying experience for all.

Foam insulation sheets versus other systems for basement insulation – which is better to use? My theory is that, the type of system does not matter as much as the R-value and application methods. By understanding the basics, you will be able to make a smart choice in choosing which type, method and the thickness of insulation to use.

A basic theory of insulation, whether it is fiberglass or foam insulation sheets, is that tiny air pockets play a very important part in determining the R-value factor. The thicker the insulation the higher the R-value of the insulation and the less heat transfer to the cooler side. Heat moves from warmer areas to cooler areas. If your basement insulation with foam insulation sheets or batt insulation is properly applied, it will restrict the loss of heat and cool air movement that transfers from warm side to the cool side of the basement insulation. What does this mean? It means that in the winter it restricts the heat transfer, from the living space and to the outdoors and the cold air from the out doors to the living space.

There are two types of building insulation – Bulk Insulation and Reflective Insulation. Some buildings use one type or the other and some buildings use a combination of both types.

If you decide to insulate your basement with foam-paneling/sheeting insulation then you will have to apply this method before you start framing the basement walls. I feel that although this method is more expensive, it is more efficient then some of the other methods. One big reason is that there is no need for 2×4 studs to hold it in place. Omitting the 2×4 studs helps with the restriction of heat loss.

Check your local building code for approval. You might have to cover the foam insulation sheets with a fire retardant vapor barrier.

Use a drywall saw or a similar tool to cut the foam insulation sheets. You can also use a utility knife, with extendable blades.

Prepare the basement foundation walls by removing any foreign matter and any sharp projections. Make sure that the foundation walls are clean and dry.

Once you have the foundation walls ready, star by measuring the height of the wall you are starting on and cut to fit. Place a sheet of foam insulation in a corner of the wall. Make sure that it is plumb. If the adjacent wall is not plumb, then you need to shave the foam sheet to fit plumb and tight in the corner.

You can follow the steps below to make any kind of sheet fit square and plumb against a corner wall.

Lean the sheet up right in the corner wall as if you were going to attach it in place. Then see which end is not tight to the adjacent wall and take a measurement of that space from the sheet to the adjacent wall. Ex: the top of the sheet is touching but the bottom is one inch away from touching the adjacent wall. Mark one inch at the top left corner from the edge and to the right of the sheet. Now you can use a chalk line from the one-inch marker and the bottom corner Put the chalk line precisely on the other corner of the sheet, snaps the chalk line and shave the sheet accordingly.

Dry fit the first sheet and if you are happy with the results, you can apply a compatible adhesive to the sheet in a zigzag pattern to the sheet and attach it to the wall. Press the sheet to make sure it adheres to the wall. Attaching the rest of the foam insulation sheets to the rest of the foundation walls should be easy. Always make sure that the ends of the sheets are butted together tight.

Chances are that you will end up with an end piece less then the width of a whole sheet. If you end, up with a narrow piece, take a measurement at the top of the wall and a measurement at the bottom and chalk line the marks on the sheet, shave it and attach it in place with a compatible adhesive.

Cutting out the basement window could be done in different ways. These are two ways how to cut the window (1) you can dry fit the Styrofoam sheet (butted against the last sheet that you attached), use a permanent marker to mark the window cut-out on the back of the sheet while pressing it against the wall. Cut where you marked and should end up with the window cut-out.

(2) Another way to mark the basement window cut-out is by measuring from the bottom of the floor joist to the top edge of the window and another measurement from the bottom of the floor joist to the bottom edge of the window.

Next measure from the end of the last attached sheet to the side edge of the window. Transfer and mark the three measurements on to the sheet. Now use a framing square or a drywall “T” square and line up the square with the marks and mark the cut-out of the window. Now you can cut out the window cut-out.
Insulate the rest of the foundation walls in the same manner. After you finish insulating the walls. Go around and check for gaps. If a gap is more then one millimeter fill it with a bead of compatible adhesive. Cover the butt joints with the “red contractor sheeting tape”.

Use friction fit pink insulation wrapped neatly in poly vapor retarder to insulate between the floor joists. Do not shove the insulation all the way; just keep it even with the foam insulation sheets.

I hope that reading this information will help you with your insulation needs.