REAL Exclusive Magazine

Will The New FHA Short Refinance Program Help Stem The Foreclosure Tide?

By C. J. Coury

Many of you have asked me what I expect the market impact to be of the newly released government program that calls for some principal reduction on the part of the lender. This is the FHA Short Refinance Program and here are the highlights of it:

 Program dates are 9/7/2010 to 12/31/2012
 Borrower must owe more on their first mortgage than the property is worth
 Program is for primary residence occupancy only
 Mortgage being refinanced must be current
 Borrower’s existing loan must not be an FHA-insured loan
 Borrower must meet all FHA eligibility criteria
 Program participation is voluntary and requires consent of lien holders
 Lender must write off unpaid principal balance of the original first lien mortgage by at least 10%
 The new FHA loan cannot exceed 97.75% of the value of the home
 Combined mortgage debt must be written down to no more than 115% of appraised value

While this program certainly has merit it may be difficult for all of the above pieces to come together for the large number of homeowners (up to 1.5 million) that the government is hoping will benefit from this initiative. Many analysts don’t expect participation to exceed 200,000.
 
As of the writing of this column none of the four major loan servicers; Wells Fargo, CitiMortgage, Chase or Bank of America, have elected to participate in this write-down program. Without their involvement I can’t imagine that our local market will experience any meaningful relief from this particular program but, as with the several other government initiatives, some will definitely benefit – and that can’t be bad.

C. J. Coury is a Vice President with HomeBanc and oversees the Greater Sarasota market. He has been a mortgage finance professional since 1983. C. J. may be reached at (941) 730-2444 or by email at cj.coury@homebanc.com.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

Go Global

International Buyers By The Numbers

By Patricia Tan

Regular readers will be familiar with my fascination with numbers and statistics.  As a real estate professional working to bring overseas investors, immigrants, retirees and part time residents to Florida I am always interested in statistics about international buyers in our market.  I had occasion recently to revisit a report published by the National Association of REALTORS® (NAR) earlier this year, and thought I would share some of their findings here.

The Profile of International Home Buyers in Florida is the result of research carried out by the NAR on behalf of Florida Realtors®, and it makes interesting reading.
 
We are all, sometimes painfully, aware of the downturn in the Florida real estate market over the last five years.  But have we turned the corner, and what role are international buyers playing in the recovery of our market?  The report from NAR makes interesting reading.

Most Florida REALTORS® (79%) reported that their business with international buyers had either stayed the same or increased in the last 12 months.  This is a good sign, overall, but most REALTORS® noted changes in the profile of the overseas buyer.  We saw more Canadian buyers for instance, fewer Latin American buyers and the level of European buyers stayed about the same.  It is no surprise that Canada’s reputation for fiscal responsibility and their commodity-based economy has allowed its citizens to continue to buy winter homes in Florida.  What is more surprising is that European buyers have been somewhat immune to the very serious economic situation in Western Europe.

What kind of homes are these foreign buyers purchasing?  Realtors® reported that 11% of overseas buyers bought new homes, slightly less than the national average of 18%.  Just over half of all foreign buyers (51%) bought single family homes, significantly less than the national average of 78%.  It is not surprising that more foreign owners prefer the maintenance free aspects of condo and town home ownership.  The report also showed that 30% of all foreign buyers purchased in a resort area, compared to 1% nationally.  Again, this is not surprising when one considers Florida’s life style options.

What might be surprising is that a full 81% of overseas buyers in Florida buy their homes with cash, compared to a national average of only 19%.  In many respects this makes them a dream buyer for the Florida home seller – no nail-biting moments wondering if a buyer will be successful in obtaining a mortgage in today’s tight financial markets..

Florida, as we all know, is a big state!  Where are these international buyers headed for?  Well, I’m pleased to say the west coast of Florida seems to rank very highly with overseas buyers in general, and many of them are coming to our own desirable stretch of the Gulf Coast. We rank third overall, and we are the number one choice for Canadian buyersWhat do all these statistics mean to us?  Well, for sure the Gulf Coast of Florida is “alive and kicking” as far as foreign buyers are concerned, and the Bradenton-Sarasota-Venice area rates highly with buyers from Canada and Western Europe in particular.  When we review the 2011 numbers, I believe we will see an increase in foreign investment in our area, and long may it last!

Statistics courtesy of the National Association of REALTORS®.

 
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

What Your Eyes See, Holds The Key To More Consistent Putting

By Jonathan Yarwood

All golfers have a dominant eye and in putting, it affects how you see the putting line. Some people are left eye dominant and others right eye dominant. This difference affects ball position and putting set up. A golfer must know whether they are left or right eye dominant to be a consistent putter.

To determine your dominant eye, do the following. Stand in front of a mirror. Make a circle with your thumb and index finger. Do this on both hands. Put those circles on top of each other and look through the circles at yourself in the mirror like a telescope. The eye that you used to look at yourself is your dominant eye!

For those who are right eye dominant, you will see the ball and putter better if you move the golf ball back in your stance. Also, open up your stance a little, which will help you see the line of the putt better. For a left eye dominant putter, you will feel more comfortable with the ball more forward in your stance as well as more under your forward eye. Your stance must be more square to your target line. Try to make these changes in your putting game.

If you continue to struggle after making the above changes, try a different putter design. For instance, putting with a long or belly putter can change your eye position and the way you will see the line. For some players, this produces immediate results. For others, just changing the shape of the putter head can also have a positive effect on what a golfer sees, and they become better putters. What your eyes see holds the key to more consistent putting!

Jonathan Yarwood was originally from the United Kingdom, but relocated to the United States in 1996. After a few years as one of David Leadbetter’s senior teachers, Jonathan branched out on his own and has enjoyed an extensive career with a track record that speaks for itself: He has coached, 2 US Amateur Champions including this years champion Ben An, 2 US Girls Champions and 1 US Open Champion in Michael Campbell in 2005. That is 5 USGA champs in 10 years, which is a record in itself. Add to that the four number one juniors, 3 AJGA players of the year, a collegiate number one, a male and female nationally ranked number one as well as a winner on every major professional tour, you have a record to rival the best. Jonathan was voted a Top 20 teacher under 40 years old by Golf Digest in 2006, after 5 straight years of being in the best teacher in state rankings for Florida.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

Top 10 Green Design Trends for Your Home

By Jim Soda

As the green movement gathers steam, many homeowners, and soon-to-be homeowners, are exploring ways to become environmentally conscious within their living spaces. Greening your home is not only a responsible thing to do but can also boost your home’s value when it comes time to sell.
 
These days, there are an increasingly wide range of products that purport to offer a variety of environmental values but fall short when it comes to style. Robin Wilson, a pioneer in eco-friendly design, and Vickie Gilstrap, vice president of color and design for Mohawk’s Residential Business, offer the following areas to zero in on when greening your home … while, of course, being mindful of design.

1. Carpet. Did you know that one out of every four recycled plastic bottles is made into carpet? That’s more than 3 billion bottles each year! Choose carpet made from renewable or recycled materials.

2. Paint. Create a cozy space by painting an accent wall in a warm earth tone like cocoa or cinnamon. Choose paint that is non-toxic and contains little or no volatile organic compounds.

3. Pillows. Use certified organic fabrics to create window treatments or accent pillows. You’ll be surprised at the variety of colors and patterns available.

4. Floors. When choosing hardwood flooring, using reclaimed wood adds a touch of antique, natural beauty to your home.

5. Counters. Look for those made from recycled glass, ceramic or sustainable bamboo. Use them in both your kitchen and your bathroom.

6. Accessories. Don’t just throw away your older items — breathe new life into vintage pieces instead by pairing them with fresh accessories. Reupholster an old arm chair or add an accent pillow to give it a fresh, new look.

7. Lighting. Install dimmable compact fluorescent lights, which can consume up to 75% less electricity and last 10 times longer than standard incandescent bulbs.

8. Bathrooms. A new shower curtain can update the entire look of your bathroom. Opt for nylon, which is one of the more eco-friendly materials available.

9. Faucets. Look for faucets with the WaterSense label, which can save the average household more than 500 gallons of water each year and hundreds of dollars in utility bills.

10. Bedrooms. Transform your bedroom with eco-friendly bedding. Duvets, shams and linens are available in organic materials and recycled yarn.

Thankfully, manufacturers are answering the consumer demand for eco-friendly products that are also beautifully designed.

Jim Soda, leader of the Jim Soda Group at Prudential Lakewood Ranch Realty, is a consistent member of the Prudential Chairman’s Circle, ranking among the top 2 percent of Prudential agents nationwide. He earned Prudential’s prestigious Legend’s Award for being in the Chairman’s Circle five years in a row. He is a member of the Top5 Real Estate Network. Soda may be reached at (941) 961-5857, (941) 809-7759 or jim@jimsoda.com.

Saks Fifth Avenue Extends Friends And Family Sale To REAL Magazine Readership.

October 21-24, 2010, receive a 20%* discount on your qualifying purchases.  The sale starts online October 19th. Read More

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REAL Magazine September 2010

Featuring: Dr. Vance Askins, Katelyn Joy Derstine Scholarship Foundation, Premier Inspections of Florida and more.

Read More

Premier Inspections of Florida: The Knowledge and Experience You Demand

By Lalaena Gonzalez-Figueroa

Photography by Chad Spencer

In the property inspection industry, there are certain standards imposed by discerning real estate professionals and their clientele. Experience, a broad knowledge of codes and construction, and the ability to effectively communicate information is imperative, but at Premier Inspections of Florida, owners Brian and Pam McCrone take measures that further distinguish their firm from others. By approaching their business with empathy, enthusiasm and a sense of humor, the McCrones have developed a unique model designed to enhance the inspection process. Read More

REAL Magazine Event At The Lake Club.

 
For the 3rd year in a row REAL Magazine packed the Lake Club Clubhouse. After socializing and partaking in the splendid lunch buffet the group settled in for the “update”. Guest speakers Rex Jensen; President & CEO Schroeder Manatee Ranch, Brian Kennelly; President Lakewood Ranch Commercial Realty, Milt Flinn; President Lakewood Ranch Communities and Candice McElyea; Director of Marketing and Public Relations delivered informative presentations on activities in the Ranch. In the end it was safe to say that Lakewood Ranch is leading the real estate recovery in Sarasota/Manatee. Read More

Design Lines: Houses with Boats

By Pamela Hughes

What could be more fun than having a house on one of our many beautiful Sarasota waterways and having a boat with the house as well? Well, not much, as long as the house is in Sarasota or some other gorgeous locale.

For this month’s column, I thought it would be entertaining to write about a project we are completing in the British West Indies. The project is 19 Deckhouses at The Ritz-Carlton, Grand Cayman. These are individual luxury homes with all the services of the nearby Ritz-Carlton. Each home includes an Aquariva Super yacht made by Riva with a beautifully crafted boathouse integrated into each home for the ultimate in convenience and luxury. Riva is an Italian yacht builder who is known for extremely elegant, fast, antique-styled wood watercrafts. Your Aquariva Super is your transportation of choice at your “best of land and sea” Deckhouse.

In addition to your incredibly fabulous personal yacht, you have your own golf cart, full butler service by the Ritz-Carlton, access to the resort’s Greg Norman-designed golf course, dining by celebrity chef Eric Rupert, tennis by Nick Bollettieri and a La Prairie spa. Sounds pretty spectacular, doesn’t it?

The design concept for the Deckhouses is to create one’s own private island, complete with infinity pool, garden, private beach and guesthouse. All of these elements enhance and emphasize the magnificent sun, sky and water surroundings

So what will the interiors of these Deckhouses be? Well, we designed four color schemes: neutral, blue and white, aquamarine and seafoam green, in two different styles: Modern and West Indies. The houses are 7,000 square feet each, have 12 foot ceilings and glass window walls on three sides, affording beautiful, endless views of water and land, and flooding the homes with sunlight and easy access to the wrap-around decks. Living here truly will be a synchronous indoor/ outdoor experience. Exotic hardwoods are found on terraces, in the interior millwork, on soaring beams, spiral staircases and in custom crafted cabinets. Slate and wood floors add a warm and informal element with soft area rugs for bare feet. Fabrics are informal- colorful or calming depending on the scheme- offering contrast to the dark wenge custom designed wood pieces. Decorative lighting fixtures are iron or nickel, made in Los Angeles especially for The Deckhouses by one of the more exclusive manufacturers in the U.S.

Finish materials for floors, walls, ceilings, bathrooms, and kitchens are all somewhat unique and reference this wonderful place. Custom tiles are found in showers and on walls, and other materials in the baths were selected for their island-like informality and their dramatic island colorations.
 
Artwork and accessories, especially, heighten the feeling of being in a very special place with gorgeous island flora and fauna images and shapes.

Although The Deckhouses are in Grand Cayman, all of the design elements and concepts transfer perfectly to our own spectacular Sarasota homes. So, The Deckhouses are truly a dream come true, as are our many Sarasota properties, particularly if you love houses with boats! Now, off to explore the North Sounds and world-famous Stingray City! What fun!

Pamela Hughes, the founder and owner of Hughes Design Associates, is well known nationally and internationally. Hughes Design Associates is one of the premier interior design firms known throughout North America for specializing in prestigious custom interiors. In Sarasota, Pamela has completed many exceptional projects including The Ritz-Carlton, The Members’ Beach Club, The Tower Residences, and Plaza at Five Points. Her portfolio also includes some of the most luxurious and distinctive residences in Sarasota. Pamela’s work has been published in the best interior design magazines such as Architectural Digest and Veranda, as well as numerous other publications. Also, Home and Garden Television (HGTV) featured her in the program, “Public Places, Private Spaces”, showcasing her work on the Four Seasons Hotel, Philadelphia, and a luxurious private home in Chicago. In addition to their work in Sarasota, Pamela and her firm design projects throughout the US, Canada, the Bahamas and the Caribbean.  Pamela may be reached at 941.922.4767 or visit www.hughesdes.com.

Go Global

International Retirement Destinations

By Patricia Tan

Ask any American where they plan to retire to, and you might expect to hear Florida or Arizona.  You might be surprised however, at the many different answers you will hear today.

A growing number of Americans are becoming disenchanted with the thought of retiring to a warm and sunny location in U.S.A. Many are looking at alternative destinations outside the country – some driven by politics, some driven by economic reality, and some wooed by the thought of a better lifestyle at a fraction of the cost.

Baby boomers and affluent (or not so affluent!) retirees have become a prime target for many governments looking to increase international investment in their countries. From Mauritius to Malaysia and Belize to the Bahamas, governments have set out to bring overseas retirees to their shores. Many Americans are drawn to Central America and the Caribbean – traditionally attracted to these areas because of their proximity to U.S.A., ease of accessibility and their use of the English language. But what is really on offer? Let’s take a brief look at three popular destinations;  Panama, Costa Rica and the Bahamas.

Panama

Often called the Crossroads of the Americas, Panama lies between Costa Rica and Columbia, with the Caribbean Sea to the north and Pacific Ocean to the south. Perhaps most famous for the Panama Canal, this Central American country has made great strides in attracting American retirees, particularly those on a fixed income. 

Panama has a modern infrastructure and enjoys political stability, a high level of personal safety and security and high standards of health care – many doctors are U.S. trained, and medical tourism is a growing trend. Many Panamanians speak English, the local economy is based on the U.S. Dollar and the “greenback” is legal tender. Panama also enjoys a low cost of living. A U.S.-style home or condominium can be purchased for a fraction of the equivalent home in U.S.A. and domestic help is available and cost effective – a full-time live-in maid costs less than $200 a month and monthly utility bills are low. There are some tax incentives for foreigners too – no property taxes for up to 20 years and the ability to earn tax free foreign income.

If that is not enough to entice you to Panama’s shores, then consider the country’s generous Pensionado program. If you are over 18 and have a pension of at least $500 a month, you can be a pensioner in Panama and enjoy discounts of up to 50% on entertainment, transport and hotels. More modest discounts of up to 25% are available on restaurants, professional, medical and dental services.

But what about the weather? Free from hurricanes and earthquakes, Panama offers something for everyone. Cool mountainous areas, tropical heat in the rain forests, cooling breezes by the calm turquoise waters of the Caribbean or the dramatic waves of the Pacific.

Real estate options can be as varied as the climate.  Retirees can enjoy a mountain retreat, a single family home or condominium, in a development like Las Tierras Altas – a 200 acre eco-development under construction by an American developer in the mountains of Volcan. Or travel to nearby Boquete, a favorite with ex-pats because of the many gated communities and golf courses. Here the retiree might consider a Panamanian style cottage with quiet mountain views. For those who prefer a haven on the beach, there are many resort-like properties along the Pacific and Caribbean coasts. One of my favorites is the Vista Mar Golf and Beach Resort, a high end development, just an hour’s drive from Panama City.

Costa Rica

As Panama’s neighbor to the north, Costa Rica has long been a favorite retirement spot for Americans and Canadians alike. The warmth of the Costa Rican people, stability of the country, its peaceful nature, high literacy rate and emphasis on ecology have made this small country attractive to retirees.

Costa Rica benefits from over 800 miles of coastline set on the Caribbean Sea and the North Pacific Ocean.  Almost 20,000 square miles in area – about the size of West Virginia – the landscape is dominated by Cerro Chirripó, the fifth highest peak in Central America. Endless beaches, dramatic mountain views and an unspoiled environment of lush vegetation and abundant wildlife are just some of the things that draw visitors back time and time again, and persuade these visitors to retire to Costa Rica.

For those who want to be close to nature, it’s important to know that more than 25% of Costa Rica’s land is designated as national park, biological reserve, wildlife refuge, or some other category of protected area – the largest percentage of any country in the world. 

Costa Rica is easily accessible, with direct flights from many U.S. cities and this has no doubt added to its popularity and growth in tourism. While tourism and agriculture play a major role in the country’s economy, government tax incentives and a bilingual workforce have been successful in attracting overseas investments in high tech companies, pharmaceutical and consumer products.

What does Costa Rica have to offer those who want to retire there? There is a Pensionado program, less comprehensive than Panama’s offerings, but nevertheless, very attractive. Retirees must have a monthly income of at least $600 and change that amount of money into the local currency each month.

Real estate options are as varied as the landscape. Beach projects like Del Pacifico on the Pacific Coast offer homes and condominiums close to one of the best surfing and fishing spots in the world. For those looking for a more temperate climate, the large home sites in Bella Vista Estates boast dramatic views of the mountains and Lake Arenal. Other areas rich in beauty like Alajuela and Dominical give buyers a variety of purchasing options – from luxury single family residences to affordable home sites on which to build the cottage or estate of their dreams.

Bahamas

While retirement to Panama or Costa Rica can be achieved on relatively modest financial terms, this may not be the case for those looking to retire to the Bahamas

The first Americans to settle in the Bahamas were Loyalists fleeing America after the War of Independence. They settled in the islands, attracted by the same crystal clear waters and white and pink sand beaches that had so impressed Christopher Columbus in 1492.

Today’s Bahamas can be a bustling town with fine restaurants, casinos, stores and many commercial activities. It can also be a colorful island village from which to experience endless beaches and breathtaking sunsets, or a sportsman’s paradise of golf, bone fishing, and scuba diving. These, coupled with a stable political environment, are just some of the faces of the Bahamas that draw Americans to the shores of its 700 islands. 

For someone looking to retire, what does the Bahamas have to offer? Apart from its obvious natural attractions, the Bahamas makes it easy for foreigners to permanently reside there. An overseas resident must purchase a property valued over $500,000 and make the necessary application for residence. They must be of “good character” and able to show that they have financial resources to support themselves.  Residents are rewarded by very generous “tax free” living – no income, property or capital gains taxes.

Retirees can choose from a variety of lifestyles offered throughout the islands of the Bahamas. The hustle and bustle of the capital Nassau may not be for everyone. Many are drawn to the unspoiled islands such as Cat Island, where it is still possible to live directly on the beach and step outside your front door onto the hot pink sand.  Fishermen will be drawn to other islands. Treasure Island in the Abacos offers unrivalled fishing AND one of the world’s top ten beaches, and these may be enjoyed from an island style cottage on the beach, or a waterfront condominium. 

PHOTOS
Panama: Mountain views from new homes being built in Volcan, Panama

Costa Rica: Single family homes and condos available in Del Pacifico, Costa Rica

Bahamas:
Left: Waterfront living at Pineapple Point on Treasure Island, where the low rise condominiums include boat docks.
Right: Seabird Cottages, an enclave of only 7 preconstruction homes on prime beachfront property on Cat Island in the Bahamas.
 
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

Communication Is Key

By C. J. Coury

Now more than ever it is critical to communicate with your buyers who are purchasing with the assistance of mortgage financing. Mortgage lenders have developed many new processes with the intent of eliminating as much fraud as possible. This increased scrutiny includes the utilization of electronic resources to help verify much of the information contained in the loan application. It is therefore paramount that the mortgage applicant is as honest, open and thorough as possible with the lenders Loan Officer. It is also imperative that the Loan Officer take the time to conduct a full and complete interview with each potential borrower and to communicate clearly with them that they will continue to be reviewed and monitored throughout the process.

Borrowers should be given a clear understanding of the importance of checking with their Loan Officer prior to making any changes in their financial position as it may adversely impact their loan approval. These include, but are not limited to, change of employment, depletion of assets, additional credit requests, or financed purchases such as a car, boat, furniture, appliances, etc.

The mortgage lender will most likely conduct a second verification of employment, credit and asset account balances just prior to the closing date. Significant changes might not only create last minute issues but can actually cause an approved loan to be declined.

Communicate the above facts clearly with your buyer to ensure a smooth and trouble free mortgage approval process and closing.

C. J. Coury is a Vice President with HomeBanc and oversees the Greater Sarasota market. He has been a mortgage finance professional since 1983. C. J. may be reached at (941) 730-2444 or by email at cj.coury@homebanc.com.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

The International Buyer And Currency Exchange – A Predictable Trend?

By Laura McLoughlin

The anticipated report ‘The 2010 NAR Profile of International Home Buying Activity’ has just been released and provides interesting reading. Anyone involved in the real estate market over the past couple of years would probably have been looking to diversify their service offering and marketing efforts given the slow down in the housing market and general economic conditions.

More and more real estate professionals looked globally, recognizing that ‘foreign nationals’ represented a big market share. The National Association of Realtors also recognized the buying power of non-residents and undertook its first research project to better understand this market. The resultant 2006 NAR Profile provided a tremendous amount of information on the foreign buyer, and also gave a plethora of facts and statistics of where clients were coming from, the types of homes they bought, the amount of money they spent, etc. A useful tool for any budding international practitioner. Back then, it was the Britons who topped the table as number one home buyers in Florida, not surprising for anyone living in Florida, especially in the Orlando area. By 2008, the Canadians had topped the table with the UK running a close second. However, according to the new report, spanning the period April 2009 to March 2010, the Canadians are still number one, followed by Mexico then Hong Kong/China, with the Britons running in fourth place.

So why the change?

The global economic conditions are no doubt a factor, the UK and Europe are still trying to claw their way out back to financial security whilst Canada and Mexico are experiencing relative growth. Lack of financing, visa concerns, tax issues are all considerations for international buyers, but does that help explain why some countries have more buyers coming here than others?

Currency exchange rates..a deciding factor?

Interestingly, the Canadian Dollar (CAD), Hong Kong Dollar (HKD) and Mexican Pesos (MXN) all either appreciated or remained constant against the United States Dollar (USD) from April 2009 to March 2010, the same period that NAR conducted their survey. The CAD appreciated more than 20% from $0.78 to parity, the MXN appreciated just under 10% whilst the HKD remained constant. The Great British Pound (GBP) failed to live up to its great expectations, similar to England’s hopes of winning the World Cup, and fell from 1.68 to a low of 1.44. Gone are the days of the GBP trading above 2.00, for now anyway.

The NAR report concluded that ‘it appears that the value of the dollar relative to other currencies is an important factor in influencing the purchasing decision’. I would concur wholeheartedly and go one step further concluding currencies that perform well against the USD over a particular time draws in buyers and visa versa.

So why so important?

For Realtors, it is important to recognize the importance of currency exchange rates because it is the reason clients from other countries buy. For clients, it controls their buying power, which controls the amount of money they have to spend.

It is also important to understand the issues faced by clients who have to not only exchange their currency, but also transfer it here to purchase their piece of US real estate.

Currencies fluctuate

The first issue, as highlighted above, is that currencies fluctuate. Large movements in small amounts of time are not uncommon. These movements will affect the amount of money buyers have to spend.

Exchange rate ‘price’

Most people are not aware that the exchange rate market is the same as any other market, and the price a client pays, that is the ‘exchange rate’ varies depending on the financial institution used to facilitate the exchange and transfer.

Other considerations

Commission charges, transfer times, tracking of funds all can cause problems when trying to make an international payment. For clients, it can cause many a headache in the already unfamiliar process, for realtors it can delay closings or even lose the sale completely.

Moneycorp, Inc., a subsidiary of TTT Moneycorp Limited, is a specialist foreign exchange company helping individuals and clients make international payments. The benefits of our service is that we provide the best exchange rates, fast and efficient transfers and risk management solutions to ensure clients get the best currency exchange and transfer solution. Moneycorp also has a Referring Partner Program designed specifically for Realtors working with international clients. If you would like to find out more about the currency exchange market, the services Moneycorp provides or simply have a related questions, please contact Laura McLoughlin at (407) 352.5890 or visit www.moneycorp.com/us

Copyright © 2010 REAL Magazine

Links to this article are encouraged

The Fairway Bunker Shot

By Jonathan Yarwood

This shot is a shot which is rarely practiced, yet is a vital recovery shot from a fairway bunker. There are two ways to play it, but in both cases, you need to make contact with the ball first in order to advance it a long way.

Take a look at the lip of the bunker first. If there is a lip, use a more lofted club and lower your distance expectations. People often use too little loft and hit it into the lip.

In the first way to play the shot and if you are good ball striker, set up to compress the ball like a punch shot. Namely, move the ball back a touch, weight forward slightly, choke up on the shaft and make a controlled three quarter back swing. That will create the ball first contact required.

The second way and best for poorer ball strikers is to move the ball forward, stand taller and choke down a little. Hover the club on the equator of the ball. Make a swing focusing on keeping your height and not moving your eyes or head and keeping your legs solid. On the way through, pull your follow through in a touch. All of these measures will raise the arc of the swing and allows the club to pick the ball.

Memo to everyone, especially Dustin Johnson, do not ground the club!

Jonathan Yarwood was originally from the United Kingdom, but relocated to the United States in 1996. After a few years as one of David Leadbetter’s senior teachers, Jonathan branched out on his own and has enjoyed an extensive career with a track record that speaks for itself: He has coached, 2 US Amateur Champions including this years champion Ben An, 2 US Girls Champions and 1 US Open Champion in Michael Campbell in 2005. That is 5 USGA champs in 10 years, which is a record in itself. Add to that the four number one juniors, 3 AJGA players of the year, a collegiate number one, a male and female nationally ranked number one as well as a winner on every major professional tour, you have a record to rival the best. Jonathan was voted a Top 20 teacher under 40 years old by Golf Digest in 2006, after 5 straight years of being in the best teacher in state rankings for Florida.

Copyright © 2010 REAL Magazine

Links to this article are encouraged

Back To School Message From John Saputo, Gold Coast Eagle Distributing And Budweiser.

Click here to download pdf of the following article.

Start the New School Year with Smart Choices:

Talk With Teens about the Consequences of Underage Drinking. Read More

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REAL Magazine Summer 2010

Featuring: International Artistic Stone, The Warren Backpack Program, Coldwell Banker’s Tracy Eisnaugle and more.

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