The Ohio Primary and Real Estate

By John McGory

The traveling political circus known as the presidential primary comes to Ohio this week.  Ohio is the main target for the Republican candidates. 

The Real Estate Swami will be listening for credible ideas from the candidates on how they plan to improve Ohio’s economy.

“Ohio’s economy, led by the real estate and building industry, has suffered long enough.  People of Ohio are hurting and need help.  We need enlightened leaders who put positive results ahead of poll numbers,” says the Swami. 

Swami credits Zillow.com for putting together a chart on where the presidential candidates stand on a few basic real estate issues. 

To see where each of the candidates stand go to http://www.zillow.com/blog/2012-01-20/what-are-the-presidential-candidates-positions-on-housing-plans/

The Swami encourages Ohioans to ask questions of the candidates via social media.  You can go to the candidates’ Facebook pages to get an idea of their positions on issues and what the campaigns see as important enough to post.

Here are the links to the four main candidates:

http://www.facebook.com/#!/barackobama

http://www.facebook.com/#!/mittromney

http://www.facebook.com/#!/RickSantorum

http://www.facebook.com/#!/newtgingrich

“It is important that we take the time to ask questions of the candidates and ponder where we go from here.  Real estate is the backbone of our country.   We need to protect and encourage home ownership and the candidates need to tell us how they plan to do it.  Glib 30-second sound bites will not work,” says the Swami.

John McGory is a licensed Realtor and is a partner in Webface, a content marketing company (www.web-face-solutions.com).  You can reach him at jrmcgory@gmail.com.

Your Drop in the Bucket

By John McGory

The Real Estate Swami asks a favor of you.  Answer this simple question:  Are you environmentally friendly?  Most of you will answer yes, as did the swami.  But the swami knows he can be a better steward of the environment. 

The Swami found this list of ten tips to help him keep the environment in mind as he lives his modest life.  He would like to share it with you.

1.  Turn off lights when you are not in a room.  The mind sometimes forgets the little detail of flipping a switch.

2.  Don’t let the water run unnecessarily when brushing teeth and washing dishes.

3.  Upgrade insulation, especially in older homes.

4.  Check for air leaks around windows and doors.

5.  Buy earth friendly cleaning products including laundry detergent.

6.  Buy energy efficient light bulbs.

7.  Use cloth diapers.  A disposable diaper takes 500 years to biodegrade in a landfill.

8.  Unplug appliances when not in use.

9.  Look for Energy Star products.

10.  Recycle.

These are a few ideas that will allow us all to help the environment.   Many of you are already doing these and more.  The Swami begs a thousand pardons from you for not always doing his part for the environment.  He asks to keep the words of Mother Teresa in mind when considering if our small effort at helping the environment is worth it.

“We ourselves feel that what we are doing is just a drop in the bucket.  But the ocean would be less because of that missing drop.”

Everyone’s home is a nicer place if the environment is clean.  If you have questions regarding your home or you know someone who does, send us an email and we will help you find the answers.

John McGory is a central Ohio residential and commercial Realtor.  He is also a partner in Webface, a content marketing company (www.web-face-solutions.com) He can be reached at jrmcgory@gmail.com

The Swami and Home Equity Insurance

By John McGory

A new wrinkle in the real estate world is the home equity insurance programs being promoted by Home Value Protection and other insurers.  The Real Estate Swami says all should move carefully when considering such policies.

The equity insurance programs are aimed at protecting homeowners from steep drops in the value of their home.   

Here is how it works.  Insurance buyers pay a monthly premium.  The insured will collect on the policy if both of the following happen.  One, the house sells for less than the value determined on the policy.  And two, homes throughout the area have dropped overall according to a national home price index. 

So if your home drops 20 percent but the overall market only drops two percent, then the policy will pay you two percent of your losses, not 20 percent. 

The Real Estate Swami says there are several considerations to keep in mind if you are considering purchasing a home equity insurance policy.

“In the past five years local home prices have dropped 11 percent.  It is likely we are near the bottom since little new housing stock is being added to the market.  Also, home equity insurers targeted central Ohio because of stable home prices.  While certain neighborhoods may continue to suffer, it is unlikely our regional price index will drop another 11 percent,” says the Swami.  “Keep in mind your payment is based on the percent drop of the entire market, not your individual home.”

The Swami says if the entire market does drop another 11 percent in the coming years, then the chances of the home equity insurance companies surviving would be slim. The best advice is to continue to try and build equity in your home.

“Pay yourself,” counsels the Swami.  “Reducing the principle on your loan each month by paying a little extra will put you in a better position when you sell than most insurance policies.”

John McGory is a licensed real estate agent in central Ohio.  He is also a partner in Webface, a content marketing company.  Get more information at www.web-face-solutions.com

Central Ohio Real Estate Is Not Normal

By John McGory

A national real estate expert came to Columbus this week to tell us that the real estate market is close to normal again.  The Real Estate Swami says statistics can be deceiving.

Ted Jones, chief economist for Stewart Title, came to town to present his real estate forecast to the Columbus Board of Realtors, Building Industry Association and Columbus Mortgage Bankers.

The Real Estate Swami was there to listen to the Houston, Texas native.  The main thrust of Jones’ speech was we are back to 2002 sales levels and that is as good as it is going to get.  The bubble years from 2003 to 2009 are but a fond memory.   

Swami believes that the evidence in the streets of central Ohio is that while we are improving we have a ways to go before we see a “normal” real estate market.

“There is evidence that the housing market is gaining strength.  But to say this is normal is either a sign of the apocalypse or someone with little faith in the central Ohio housing market,” says the swami.

The swami points to a robust 1990s market with strong residential and commercial building as more typical of a normal central Ohio real estate market.  Those days will return as the economy continues to strengthen and job creation increases.

The central Ohio job market is still down 35,000 jobs from its peak in February 2008.  We have picked up 5,000 jobs in the last 12 months, including a 3,700-job uptick in November 2011.

“Columbus and central Ohio have always been considered the poor stepchildren from real estate experts around the country,” remarks the swami.  “But our market can do much better and will do so in the coming years if we continue to get strong local leadership from business and government.”

The swami did agree with Jones that one group that needs to be encouraged that real estate is a good investment are young adults.

“Renting gives the young the illusion of freedom.  That all is possible if you are not tied down to a property,” he says.  “But we must remember that they have grown up in the worst of real estate times.  The young will soon see that ownership is true freedom.”  

John McGory is a partner at Webface (http://www.web-face-solutions.com/), a content marketing company in central Ohio, and is a licensed real estate agent.

A New Year's Home Resolution

 By
John McGory

Do you have a New Year’s resolution for your home this year? The Real Estate Swami says that January is the perfect time to reflect on where you live and what your plans are for your house or apartment.

“The cold, gray days of January are the time to meditate on where you live,” says the Swami.  “Once you become one with your thoughts then you can begin to plan.”

The Swami suggests looking back before looking ahead.  What activities and events did you enjoy in your home last year?  What would have made those times better?   What limitations or drawbacks in your living arrangements brought discomfort or disappointment?  Thinking about the recent past can give you a clearer vision of where you want to go. 

It may be improving your patio, deck or outdoor space.  A bigger kitchen may bring needed space.  Or it may be that the house or apartment has too many issues and that a new address is the right answer.

Maybe the changes are small but mighty ones.  A resolution need not mean spending a lot of money.   Sometime it is simple as painting or a thorough cleaning. 

Another idea is to practice the feng shui concept of moving 27 items in your house to change your life.   Many practice the Chinese art of feng shui to promote positive energy flowing through the home.  It provides balance and harmony to the home or office.  Here is a short video that explains feng shui

http://video.about.com/fengshui/Learn-Feng-Shui-Basics.htm

“Much can be done to improve the feeling of love and energy in the home.   It starts by uncluttering the mind and feeling the energy that is there.  Then you will begin to understand what needs to be done,” says the swami.

The Swami reminds all that peace starts in the heart and home.  He wishes each of you a joyous 2012.

John McGory is a partner in Webface, a content marketing company. He is also a licensed central Ohio real estate agent.  He can be reached at jrmcgory@gmail.com

Love and Light

The Real Estate Swami wants to wish each of you a happy holiday season.  Here is a short parable to keep in mind during the joyous times.

The holiday season brings much joy and sadness to the world.  The swami tells of a man who had lost his wife, Emma.  She had been his companion for many years.  The holiday season had always been difficult on Emma.  Her parents had often bickered.  Her alcoholic father and stern mother struggled each Christmas and could never put aside their differences in the season of light and joy.

Emma carried her parents’ burden during the holiday season.  She could not experience true joy from the spirit of love and giving to her children, friends or family.  The gloom of past Christmases hung too heavy on her spirit to let her feel love.

Now that Emma was gone, the man still relived his lovely wife’s pain of the holidays. He fervently wished that no misery had ever been a part of his Emma’s life. 

As he sat slowly dissolving into his wife’s sadness, an old friend came by and sat next to the man.  His friend sensed his pain and spoke.

“Does not the pain of others alone give us insight into the depths of our own lives?” said the friend.  “In our moment of anguish, gates barred forever seem to open and let in a flood of light.”

The man reflected on his friend’s words.  The pain of Emma was a sign to him that his life must not be one of despair.  That his gift to her was to absorb her pain and send out love and light to the world.

May you absorb the pain of others during the holiday season and send out love and light.  Happy holidays.

Bank rankings back up Occupy Wall Street claims

By John McGory

The big banks in central Ohio keep getting bigger, according to the recently released Federal Deposit Insurance Corporation (FDIC) 2011 deposit share report.  This concentration of financial power will only continue to hurt real estate and small business expansion, says the Real Estate Swami. 

The top five banks in the Columbus metropolitan area increased market share from 72.28 percent in 2010 to 76.13 percent in 2011.  That is a robust increase considering the third largest bank, PNC, lost over three percent of market share.

Huntington Bank and Chase Bank solidified their number one and two positions.  The two banks combined for a 5.15 percent increase in central Ohio market share.  This came at the expense of PNC, Key Bank and smaller institutions.

Central Ohio banks that increased market share were:  Huntington, Chase, Fifth Third, Nationwide, Park National and Union Savings.  Central Ohio banks that saw a reduction in market share included:  PNC, Key Bank, US Bank, Wesbanco, Delaware County Bank and Heartland.

Here is a chart showing the changes in market share from 2010 to 2011.

               Bank               2010         2011 

1.      Huntington       21.82        24.12

2.      Chase               19.27        22.12

3.      PNC                  16.12        12.99

4.      Fifth Third         8.80          9.44

5.      Nationwide       6.81          7.46

6.      Key Bank           4.37          3.78

7.      Park National   4.19           4.39

8.      US Bank            2.83           2.48

9.      Wesbanco        1.28           1.18

10.   Delaware Cty   1.27           1.11

11.   Heartland         1.10           1.09

12.   Union Savings   .93             1.00

The Real Estate Swami sees that the wailing and gnashing of teeth over large financial institutions bailouts several years ago did not translate into fewer customers for the large banks.  The banks’ higher fees and poor public relations were offset by convenient locations, new apps that young customers want and aggressive advertising that appeals to younger customers.

The Swami does predict that large banks will face increasing pressure to loosen lending practices as we head into 2012.

“The message from the Occupy Wall Street movement is that the rich get richer in the financial and banking industry, while the middle class suffers,” says the Swami.  “The increase in market share profit allows large financial institutions to continue tight-fisted lending policies for home buyers and small businesses. 

“This simmering cauldron of financial discontent may well boil over as we head into the 2012 presidential election,” warns the Swami.

__________________________________________

The Real Estate Swami is brought to you by Web Face, a Columbus marketing and communications company.  Learn more at www.web-face-solutions.com