Luxurious Condo Life

Glenmore Garden Villas offers luxury living at affordable prices

In today's market, homebuyers have more options – especially when it comes to purchase price.

That's why several developers are building homes and luxury condos that are more affordable than many of the luxury-prices dwellings that came to market a couple of years ago. Yet at the same time, they're not skimping on luxury details.

Elaine Burgin, Marketing Vice President at Glenmore Garden Villas, says there has never been a better time to buy a new condominium, with extremely low mortgage interest rates and great values in the housing industry.

One example is Glenmore Garden Villas, located right off of I-485 on McKee Rd. in Charlotte, North Carolina. Glenmore Garden Villas is being developed as an attached-condo community with units starting from the low $400s.

“Our condos are close to I-485 for easy access to other popular areas of South Charlotte like Ballantyne, Southpark, Center City and the Charlotte Douglas Airport CLT for easy flight arrivals and departures with quick access to the CLT airport parking and terminal.,” says Burgin.

But even with such reasonable pricing, “These units definitely offer luxury-line amenities,” Burgin says. “For example, they all have high vaulted ceilings and cultured marble countertops in Master Bath and Guest Bath rooms. They also include hardwood floors, arched openings, top of the line appliances, and granite countertops in the kitchen.”

Buyers choose one of two floor plans, both equipped with a flex room and office. The Highland Villa is a 2,899 square feet condo, with three bedrooms, two and a half baths, and an open living/dining area. The Forest Gate Villa is also 2,899 square feet and has three bedrooms and two and a half baths, but the dining area is separated and slightly more secluded.

The Glenmore community has 16 acres on which it offers peaceful fountains, gardens, elegant pools, a cabana, and pergola covered lounging areas.

For more information regarding luxury condos, visit Glenmore Garden Villas' website.

Burning Issue

As wood stoves gain popularity, air-quality concerns rise

The soaring prices of heating oil and natural gas are prompting many Americans to warm their houses with a less expensive fuel -- wood.

Consider Julia and Jim Fusari of Freeport, Maine. Last year, they burned 500 gallons of oil to heat their 2,000-square-foot home. They hope to cut that figure in half by supplementing their oil furnace with a new stove that burns pellets of compressed wood waste. Relying solely on oil is "just too expensive," Ms. Fusari says. "We can't afford it.".

But increased reliance on wood stoves is worrying many environmental regulators and activists, who say the practice emits harmful pollutants. Around the country, local environmental regulators are limiting the use of stoves when pollution is especially bad, and in some cases they're offering incentives to get people to buy the cleanest models possible.

"People conceive of burning wood as being natural. Tobacco is natural, too -- until it burns," says Julie Mellum, president of Take Back the Air, an organization concerned with neighborhood air pollution, and Midwest director of Clean Air Revival, a group concerned with the medical hazards of wood-smoke exposure. "When many people are burning wood, the effect is all the more hazardous."

Burning Money

Many homeowners feel they have little choice but to switch to wood stoves. Residential heating oil, an energy source for 8.1 million U.S. households, will average $4.13 per gallon this winter, according to a projection from the Energy Information Administration, a federal agency that tracks energy statistics. The average household can expect to pay $2,524 for heating oil this season, up more than 30% from last year. And natural-gas bills will increase 19% to $1,017, the agency predicts.

The threat of high heating costs is pushing up stove sales across the country. Second-quarter shipments to dealers of pellet-burning stoves and stove-like inserts that fit inside fireplaces rose 212% over the same period last year, reports the Hearth, Patio and Barbecue Association, a trade group in Arlington, Va. Shipments of wood-burning stoves and inserts were up 54%.

Burning wood offers consumers sharply lower fuel bills. In some cases, adding a wood stove can reduce oil consumption by half or more, and the cost of fuel can be as low as about $1,380 per season for a pellet stove in a midsize house. The problem? Wood burning produces toxins such as dioxin, arsenic and formaldehyde, and emits fine particles into the air -- known as particulate matter -- that can become embedded in the lungs.

Heat Source

Particulates can aggravate respiratory conditions and lead to cardiac problems and lung disease, according to Janice E. Nolen, a policy advocate for the American Lung Association in Washington, D.C.

In 1988, an Environmental Protection Agency regulation required new stoves to keep particulate emissions below certain levels. Some states and municipalities require that all stoves sold and installed carry an "EPA certified" designation.

But some clean-air advocates say the EPA's certification standards aren't stringent enough to curb runaway pollution. Even wood stoves that are certified as "clean burning" by the EPA still emit 107 times more fine particulates than an oil-fired furnace.

Earlier this year, the Western States Air Resources Council in Seattle and Northeast States for Coordinated Air Use Management in Boston, both of which are groups of air-quality agencies, urged the EPA to tighten its certification standards with stricter particulate requirements. The EPA says it's reviewing the information it needs to revise the standards.

State by State

In the meantime, local regulators are cracking down. In July, the Bay Area Air Quality Management District in San Francisco approved its first mandatory controls on indoor residential wood burning. The air district can prohibit burning on nights when particulate matter exceeds 35 micrograms per cubic meter -- something that occurred seven times during the 2007-08 winter season. Violators could incur fines of up to $1,000.

Similar measures are in effect elsewhere in California, including Sacramento and the San Joaquin Valley, as well as in other states. The Puget Sound Clean Air Agency in Seattle bans indoor burning of any type of wood or pellet stove -- unless it's the only adequate heat source -- when pollution reaches its highest levels. (That's on top of Washington State's stringent emissions standards for wood stoves, which are tougher than the EPA's.) In Colorado, residents can use only stoves certified by the EPA or state when pollution is high in the wintertime.

Other states are trying to get residents to replace older stoves with cleaner-burning models or other heating sources. The state of Washington this summer awarded $1.5 million in grants to local clean-air agencies for one such effort. Last year, a Puget Sound Clean Air Agency program offered consumers in three communities incentives ranging from $200 to $750 to make the switch. A total of 238 households participated, and more than 100 switched to cleaner-burning wood or pellet stoves.

A similar program in Libby, Mont., saw 1,130 stoves replaced between 2005 and 2007. The result: a 28% reduction in fine particulates during winter months, according to the Hearth, Patio and Barbecue Association. But Montana air officials say the state needs three years of data in order to be more certain of the program's effects.

Some states with a wealth of forestry resources are trying to balance their convenient fuel source with cleaner air. In Maine, for instance, Gov. John Baldacci has established a Wood to Energy Task Force to explore a transition to cleaner-burning stoves and pellet fuels.
What to Look For

So, what's the best move for consumers interested in heating cleanly with wood? First, do your homework. Standards vary among states and local jurisdictions, so make sure you know what's legal for your area. And look carefully at performance levels, which can vary even among certified stoves.

Hearth Condition

* The Popular Alternative: As oil and gas prices soar, people are flocking to stoves to help heat their homes.
* The Drawback: Burning wood releases harmful pollutants -- leading lots of states to crack down on wood-burning stoves.
* The Smart Solution: Before you buy, do your homework on local rules and figure out what size stove you need. Also, look into ways to keep the heat in your house, such as an efficient shower enclosure, to prevent drafts.

"Look at the emissions numbers and try to purchase the cleanest-burning unit you can," says Lisa Rector, a senior policy analyst with the Northeast States air-quality group.

EPA-certified stoves carry a label that that shows how a particular stove performs on a scale of acceptable emissions and its wood-burning efficiency. The lowest particulate emissions among stoves are generally between 1.8 and 3.0 grams per hour; the EPA limit for wood stoves with the most popular type of combustion system is 7.5 grams per hour.

Also bear in mind that some wood stoves and fireplaces are exempt from the EPA standards, which apply mainly to appliances not intended for residential heating, such as cook stoves, decorative fireplaces and outdoor wood-fired boilers. But it's illegal to install noncertified stoves in places with strict standards, such as Washington State.

Adding to the confusion, many pellet stoves don't require EPA certification at all if they already meet certain standards required for certified wood stoves. They are also relatively clean because the pellets burn more efficiently than regular wood, producing more heat and less pollution (generally about 1.2 grams of particulate emissions per hour). Stoves that burn coal, corn and other organic waste are also unregulated.

It's also important to work with a reputable dealer who can help you choose a properly sized stove. If it's too big, for example, it will overheat the room unless you reduce the air flow -- which causes a low, smoldering fire and excessive smoke. What's more, wood selection can play an important role in pollution reduction. Burning dry, seasoned wood reduces smoke output.

Ultimately, says Ms. Rector of the clean-air group, the burden falls on consumers to do research prior to purchasing a stove. "You can burn wood," she says. "But you have to find out how to do it right."

By: Suzanne Barlyn
Wall Street Journal; September 15, 2008

Home-inspection Checklist Helps Prevent Problems

When people buy a home, it is advisable to have it inspected by a professional home inspector to ensure there are no major issues with the home before buying it, and to help determine which items might need repair or regular maintenance.

But once people have lived in their homes for a few years, they usually don't bother about putting many of the same items on a home-inspection checklist to ensure there are no developing problems.

It's smart to use regular-home inspections to ensure your home is properly maintained. Certainly having a professional home inspector perform an annual inspection of your home is a great idea, but you can do your own inspections and save a lot of money.

While I wouldn't advise you to crawl into your attic or up on your roof if you don't feel comfortable doing that, there are plenty of other items you can check and repair if needed.

The weather at this time of year is ideal for doing an exterior inspection of your home. When that's done, check the interior as well so you can fix things before additional problems occur.

When doing your home inspection, focus on these key areas that many professional home inspectors find most often are in need of maintenance:

• Gutters and downspouts. Make sure gutters are clear of debris and aligned properly so they can do what they were made to do -- keep rain water from seeping into your basement and causing potential flooding or structural problems. While you are inspecting your gutters, look for leaks in the seams that can be repaired with silicon caulk. If you pull on the gutters and they give way, your fascia boards may be rotting and need replacing.

• Improper grading around the home. Besides leaky gutters, one of the other common reasons people have basement leaks is because the grading is sloping toward the home, rather than away from it. If you have an area of your yard that slopes toward your home, re-grade it with topsoil.

• Shingles and chimney flashing. Loose or missing shingles are a sure sign your roof may be wearing or is damaged. The safest way to do a sight inspection of your roof is to use a pair of binoculars. Look for worn, curling, or discolored shingles, and check the valleys (where rooflines come together).

Cracks in the valleys can lead to leaks in the attic. They need to be sealed immediately. Then, check the flashings around your chimney to see if they need to be caulked or repaired. This will also help prevent water from leaking into your home.

• Exterior caulking and weather stripping. Lack of proper caulking or weather stripping around door and window exteriors can cause air to seep into and out of the home, which increases heating and cooling bills. Replace hardened or cracked caulk and window putty. Make sure all openings where pipes and wires enter the home are sealed and the caulk is still flexible.

• Gas leaks at valves on appliances. Gas valves on appliances, such as dryers, stoves, or hot-water tanks, can begin to leak over time. There have been many incidents where a gas leak in a home resulted in an explosion.

By doing the simple smell test, you can ensure this catastrophe won't happen to you. If you smell gas, call the gas company immediately.

• Dryer vent systems. Every year, thousands of families experience home fires that are caused by cheap or clogged dryer vents. Unfortunately, many homeowners use vinyl tubing rather than hard metal for the dryer vent, or they don't clean the vents regularly. Both can lead to dryer fires.

If your clothes dyer has a vinyl or foil dryer vent, replace it with a solid-metal vent. And make sure you clean your dryer vent at least twice a year.

• Inoperative smoke detectors. Most people have smoke detectors in their home, but don't clean them or change the battery regularly. I recommend cleaning smoke detectors and replacing the batteries twice a year -- on Memorial Day and on Labor Day. Remember, a smoke detector's life span is 10 years.

Building your own home inspection routine into your annual maintenance schedule is a cost-effective way to protect one of the biggest investments of your life.

Also consider getting a professional home inspector to perform an in-depth inspection every five to ten years to help you determine if you have been missing items that need repair and get a home warranty to cover regular maintenance costs.

It is always more economical to repair or upgrade according to your schedule rather than having to repair or replace on an emergency basis. The more carefully you inspect your home, the less you'll have to worry about in the future.

By: Glenn Haege
Detroit News; August 30, 2008

Dream Homes At Prices You Can Afford

Is buying a new home a good idea in today's economy? As a long-term investment, homeownership is still one of the best investments for individual households.

Housing, like all markets, has its ups and downs. Homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.

If you have good credit, a job, and a steady income, you'll find there's still plenty of mortgage credit to be had at good rates. For well-qualified buyers, rates are running at near historic lows.

Based on the housing stimulus program recently signed into law, you might even qualify for a first-time homebuyer tax credit, if you purchase a new home now.

Homeownership's Real Value

Dollar for dollar, homeownership is a solid stepping-stone to a future of financial security and the single largest creator of wealth for many Americans.

Over time, real estate has consistently appreciated, even through periodic adjustments in response to economic conditions. In the state of North Carolina, home appreciation has stayed at a solid 8% annually, with Raleigh real estate at a 6.4% annual home appreciation rate, compared to the national home appreciation rate or 5% annually.

The returns of such high appreciation rates are much more than an equal investment into the stock market. For instance, at the national appreciation rate of 5%, if you put 10% down on a $200,000 house, for an investment of $20,000. At a 5% annual appreciation rate, that $200,000 home would increase in value by $10,000 during the first year. Earning a $10,000 on an investment of $20,000 is an extraordinary 50% annual return. As you can imagine, an even better investment return occurs with an 8% home appreciation rate.

In contrast, putting that $20,000 down payment into the stock market and getting a 5% gain would only yield a $1,000 profit.

Should I Wait to Buy Until Home Prices Go Even Lower?

If you wait for what you think is the absolute best deal, you could end up waiting for years and missing out on your dream home. All the market fundamentals show that now is a good time to buy – prices are down, interest rate are near historic low levels, and there are lots of homes to choose from.

There are many things to consider when “shopping around” for a new home, and waiting for something that might now happen will only prolong that process. In addition to taking advantage of currently offered incentives, one of the most important things you can do when looking to buy a new home is to hire a home inspector to make sure the home is safe. A home inspector focuses on the condition and structure of the house and points out observed safety concerns. However, a home inspector will not do and destructive testing and will not inspect what they cannot see, leaving your new home in stable condition.

Therefore, if you buy now, you'll not only be in the driver's seat during the buying and home inspection process, you'll also reap the gains of price appreciation. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

The Advantage of New Construction

Today's new homes are better than ever. When you buy a new home, you get quality, new construction, the latest technological advances, and low-maintenance, money-saving, energy-efficient appliances. Many new-construction homes are built to Green Building standards. Homes are designed to fit your lifestyle, featuring larger kitchens for family gatherings, bigger closets, ample storage space, and more bathrooms.

In addition to cutting edge construction, it is easier than ever to get a home warranty. A home warranty will provide a new homeowner with coverage that will help curb the costs for common frequent household breakdowns. A home warranty will help keep the house looking and functioning like new, and is also a good selling point down the road.

So it's a good time to buy – if you're a first time buyer and qualify for the tax credit, it's an even better time to buy – and there are quality, new-construction homes and condos in every price range throughout North Carolina waiting for you. Don't wait and risk missing out on your dream home.

Teardowns Have Foes, But They Can Revitalize The Block

The first part of Mark and Constance Eddy's home-ownership story is classic: In 1998, the newlyweds bought a starter home in a post-World War II subdivision in Prairie Village, Kan.
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The 900-square-foot, two-bedroom, one-bath house was dated, with 1950s metal cabinets and gold-flecked Formica counters in the kitchen, but cozy.

"It was all we needed," Mark Eddy said.

What really sold the couple on the home was the street. Prairie Lane is a winding street of tiny houses nestled close together under a canopy of large trees. The neighborhood is next to the Prairie Village Shops, which contains an urban mix of businesses -- gas station, hardware store, drugstore and diner, as well as upscale restaurants and boutiques.

"People live in their front yards. There's a mix of ages -- some neighbors are like grandparents to the children on the street. It really has a sense of community," Eddy said.

Seven years later, the couple had two small children and a third on the way. It was time to trade up. So the Eddys sold the house on Prairie Lane and bought a 1,900-square-foot ranch on a big lot in Leawood, Kan. They were living the American dream.

But in a 21st-Century twist to the tale, the Eddys were unhappy in the "better" neighborhood. The street was usually deserted and quiet, except for the distant hum of traffic on Interstate 435.

"We immediately missed the neighbors, and we missed walking to the shops," Mark Eddy said. Two years later, when the house next door to their first home came up for sale, the Eddys decided to buy it, tear it down and build a new house on Prairie Lane big enough for their family to grow into.

At 3,400 square feet, the Eddys' new home towers over its neighbors on Prairie Lane. The home is in compliance with city requirements for setback from the street, setbacks from the sides of the property, height and footprint on the lot. But shortly after groundbreaking, the Prairie Village Homes Association took the Eddys to court, claiming the proposed house design was in violation of deed restrictions that limited to homes to "1 1/2 " stories. The judge eventually ruled in favor of the Eddys.

Mark Eddy, co-owner of Gahagan-Eddy Building Co., says he talked with many neighbors on the street and showed them his house plans to try to gain their approval before moving ahead with the home teardown. A majority of homeowners on his street signed a petition in favor of allowing the house.

Bill Chinnery on the homes association board of directors says he thinks the chocolate-brown exterior paint and two tall trees on the lot help the house blend into the neighborhood in summer. But in winter he thinks the house sticks out too much.

"I like the house, but it's too big for the neighborhood," Chinnery said.

Jessamine Guislain, who has lived on the street since 1965, disagrees.

"It's a beautiful house, and I enjoy looking at it," Guislain said. "I'm happy to see a family who loved Prairie Lane able to move back to it."

Guislain said allowing home teardowns and home renovations on the street helps keep the community intact. "In my own experience with a house next door to me, every family who lived there, once they had their second child, moved."

Eddy says most of his neighbors have been supportive, but he acknowledges others think the house is too big. "I respectfully disagree. If a house is beautiful, I don't care if it's twice the size of the one next to it. It should only be a problem if it's ugly."

Prairie Village recently adopted an ordinance to notify homes associations of permit requests within their neighborhoods, says assistant city administrator Dennis Enslinger.

"Everybody has their own expectation of what the neighborhood is and what it should become, and the city is trying to balance those interests for everybody involved. But it is an ever-changing balance," Enslinger said.

Cydney Millstein, owner of Architectural & Historical Research LLC in Kansas City, says preserving historic neighborhoods is important, but it doesn't mean everything has to stay the same.

"If new designs are done tastefully with a tip of the hat to what was going on historically, that's OK. If it's bringing life back to a neighborhood that became kind of stale after a while, this is a good way to inject vitality back into the neighborhood."

By: Cindy Hoedel; McClatchy Newspapers
Detroit Free Press; August 17, 2008

Home-Equity Debt Lurks

A recent improvement in beleaguered home-equity loans has been a rare sign of encouragement for banks. But bullish investors need to remove their rose-colored glasses.

Banks have about $700 billion of home-equity loans -- in which a bank lends money to a homeowner against the equity in his house. That includes both fixed-rate loans and floating-rate debt drawn from credit lines. Lenders usually can't collect on a defaulted home-equity loan by seizing a house unless the borrower has no mortgage, since mortgage lenders have first claim.

The so-called piggyback loans are the riskiest of this home-equity debt. Most were taken out during the raging real-estate market. These loans came on top of a first mortgage, aren't backed by insurance and enabled some borrowers to buy homes without making a down payment. These loans represent more than 8% of the value of outstanding home-equity loans, according to SMR Research.

Banks have been reducing unused credit lines, especially in areas with housing problems. James Dimon, chief of J.P. Morgan Chase, which has been hurt by losses in its home-equity portfolio, recently said delinquencies could be stabilizing. "It's a little ray of sunshine that is OK to grab onto for now," he said.

Many who were caught flat-footed when these loans turned sour now assume that home-equity loan risk already is factored into bank stock prices, which have tumbled. But investors may be too upbeat once again. For one thing, the recent news isn't exactly uplifting: 2.22% of all home-equity loans were charged off by banks in the second quarter, an all-time high. That is up from 1.69% in the first quarter and 0.9% in the fourth quarter of last year. Tax refunds and government-issued stimulus checks likely are at least partly responsible for why things aren't worse.

The losses likely will remain elevated for the foreseeable future. It isn't easy to see why home-equity losses would improve until there is a true bottom for housing. Analysts at Goldman Sachs predict home-equity losses won't peak until the first quarter of next year.

For investors, it would be best to avoid lenders with heavy exposure to home-equity loans written by outside mortgage brokers and other third parties that often employ lax underwriting standards. Instead, stick with banks that made their own loans during the real-estate surge.

Using this stance, investors should use caution when it comes to First Horizon National. According to a Goldman analysis, 15% of First Horizon's home-equity loans, or 5% of all its loans, were made by outside parties. Outsider-written loans represented 22% of Fifth Third Bancorp's portfolio, or 3% of its total loans. And 14% of Wells Fargo's home loans, or 3% of total loans, were written by third parties.

These three banks also have a relatively high number of home-equity loans that are at least 90% of the value of the underlying houses, which is worrisome. Some investors also are concerned about E*Trade, which also was a big buyer of home-equity loans.

On the flip side, Comerica, Regions Financial and BB&T Corp. hold almost no loans made by outsiders, which is a good sign.

By: Gregory Zuckerman
Wall Street Journal; August 1, 2008

Private Lenders Provide Option for Borrowers

As lending standards have become tougher, a rising number of people and businesses are turning to an unlikely source for money: private lenders.

In recent years, the practice of borrowing money from private parties was rare, except among those who were unable to qualify for traditional loans. Banks were flush with cash and eager to lend, meaning even people with a tarnished credit history often could find quick sources of cash.

Now, even those with good credit are bypassing banks to borrow money -- despite interest rates that can reach 20% or more, and down payments of 35% or more.

These private funds -- which aren't from banks or credit unions -- are being used for everything from second homes to apartment construction. Many borrowers have excellent credit, but they are trying to avoid the added time, scrutiny and uncertainty of a conventional bank loan. Such transactions are "not as publicly available as one might expect," says Ron Phipps, a real-estate broker in Warwick, R.I., "but there is definitely money available."

Arrangements for such loans are equally low-key. While hedge funds and high-net-worth investors are providing cash, it isn't unusual for a private lawyer to get five friends to each throw in $100,000 for a home loan. Wealthy investors, hedge funds and private-equity firms are lending money in pursuit of consistently higher returns. The bear market for stocks may make alternative investments such as this type of lending more attractive.

Typically, borrowers hear about private loans from lawyers, mortgage brokers and real-estate agents. Borrowing and lending opportunities are even sometimes posted on Web sites or in newspapers.

For investors, well-structured deals could reap significant returns, because private lenders typically charge much higher closing costs and interest rates than traditional lenders. They also require a much higher loan-to-equity ratio. So if the borrower falls behind, the lender potentially could resell the property at a profit.

"For the investors, there's an opportunity," says Scott Haislet, owner of LEC Mortgage in Lafayette, Calif. "But you better know who is in charge and who's making the decisions about the property."

Borrowers "need to make sure they understand the way the loan works," says Allen Fishbein, director of housing for the Consumer Federation of America. Mr. Fishbein recommends that borrowers "seek out independent professional advice before committing themselves."

The tight credit market makes the loans especially appealing to borrowers, who a few years ago might not have considered the option. "In times like these, when money is tight, private money flourishes," Mr. Haislet says. Stricter lending standards make it more difficult for borrowers with good credit scores to get large loans or so-called bridge loans, which someone might use during a construction project. If you are considering a home-equity loan for a construction project, also consider a home warranty. A home warranty service contract will cover the repair or replacement of many common home repairs and replacements.

Even borrowers with excellent credit scores can wait weeks for a loan to be approved. Occasionally, those deals evaporate, leaving builders and home buyers scrambling for cash. That is where private lenders step in. It isn't unusual for these lenders to charge several points and interest rates of 12% or significantly higher. They also typically require borrowers to provide 35% or more of the down payment, so there is ample collateral if anything goes wrong.

Mr. Haislet, who arranges some private loans, warns that "they're not for everyone. If borrowers can find a better alternative, they should take it, but sometimes there are no other alternatives."

Mr. Haislet says most of the private loans are for less than five years -- and sometimes only six months, for those doing home-renovation projects who could otherwise not borrow the money.

He says his borrowers typically pay 9% to 11%, compared with many current bank rates of less than 7%. The loan-to-value ratios also are much larger.

By: Jilian Mincer
Wall Street Journal; July 31, 2008