Daily Archives: October 20, 2012

Does China build quickly and cheaply for a reason? | Waccabuc NY Real Estate

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Having spent a fair amount of time in China over the past 18 years, and having witnessed its spectacular rise, I’ve always been puzzled that this remarkable nation still cares so little about the quality of the things it makes. Today, more than 30 years after the Opening in 1978, China has yet to address this shortcoming: Everything from dime store trinkets to high-rise buildings continue to show an astonishing indifference to detail.

As a Westerner steeped in the Protestant work ethic, I’ve written thousands of words and done much hand-wringing about Chinese quality over the years, wondering when China would follow in Japan’s footsteps — when it would finally pull off a miraculous reversal in its attitude toward quality, as Japan did in the decades after World War II. It hasn’t happened, and from what I can see, it probably won’t.

All of which has gotten me to wondering if it’s my own Western concept of quality that’s become obsolete. Perhaps making things last has become pointless in a world that changes so quickly.

It wouldn’t be the first time there’s been a fundamental shift in the prevailing idea of what constitutes quality: America’s own early history furnishes a parallel. For obvious reasons, the relatively crude buildings and manufactured goods of the young United States couldn’t compare to those of the Old World — one reason wealthy Americans in the early 18th century still insisted on importing their building materials, hardware and dishes from Great Britain.

Naturally enough, the British remained more than a little condescending toward their renegade former colony, whose building and manufacturing efforts fell far below English standards. This was, after all, an England whose houses were built with cut stone and massive oak timbers, whose cabinets used fine hardwoods in places you couldn’t even see, and whose steam engines were routinely polished, painted and pinstriped in gold.

Yet by the time the Yanks showed off their latest products at the Philadelphia Centennial Exhibition in 1876, it began to dawn on the Brits that America’s mass-produced products, as coarse as they appeared, were overtaking their own. This passing of the torch was symbolized by the towering Corliss steam engine that formed the fair’s iconic centerpiece, but it was apparent in all kinds of exhibits, from to stoves to clocks to furniture.

From the British viewpoint, nothing had changed. They had scrupulously upheld their accustomed standards of quality, steadfastly insisting on the very finest workmanship even when — like those gilded steam engines — it had no conceivable purpose. The eventual result of this shift in perception was an end to Britain’s industrial pre-eminence, and the beginning of our own.

It’s likewise possible that the world is once again changing, this time in a way that’s unfamiliar to our Western frame of reference. Perhaps China builds quickly, cheaply and with indifferent quality because the pace of change no longer demands permanence.

Then again, perhaps the point is moot. China comprises nearly one-fifth of the world’s population and serves, by our own admission, as “America’s workshop.” Its attitude to quality — like it or not — will inevitably affect our own.

via inman.com

Tenant fights fee for removing shabby carpet | Cross River Real Estate

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Q: I moved into my apartment eight years ago. At the time, the carpeting was in pretty bad shape with spots that wouldn’t clean or would come back after cleaning. By no means was it remotely “new,” as it appears it was the original carpeting installed when the building was built about 12 years ago.

After about five years of my tenancy, the carpet was lifeless, matted and fraying at the seams. There were issues on the stairs that were unsafe. The landlord was pretty dismissive of all repair projects, so I decided to remove the carpet and paint the floors.

Then recently, out of the blue, my landlord had an “annual inspection” for the first time in eight years and he noted the carpet was gone. He said I’ve cost him $800 and I would have to pay for replacing the carpet when I moved out. My contention is I saved him a lot of money by removing it at my cost!

I think I am a pretty good tenant, but you should know that I have been late with rent in the past. But I have a payment plan in place and am repaying back rent.

My concern is that he is charging me money to replace the carpet. I don’t think I should have to. He would have had to replace this carpet if I ever moved out.

Also, the dishwasher broke a while back and when I asked him to fix it, he said, “When you repay back rent, I’ll do something about it.” This was one of the amenities of the rental and now I don’t have use of it. Shouldn’t he have to fix it or lower the rent?

A: You have several issues here. First, the carpet does have a reasonable life and 10-12 years would certainly be about the most anyone could expect out of a typical apartment-grade carpet even with modest use and the best care. So I think your landlord needs to back off on the demand for the full replacement value of the carpet.

You correctly point out that the old carpet and pad would have to be removed and replaced before renting to a new tenant, and while the fact that you have already removed the carpet won’t likely save your landlord any money, it certainly won’t cost him much. In other words, the removal savings are offset by the fact that new tack strip will have to be installed.

The issue with the dishwasher not working and your landlord refusing to fix it or replace it until you pay the full back rent is a concern. You are correct again that the dishwasher was a feature or amenity of the rental unit when you moved in and the landlord needs to have someone out to look at it and either repair or replace it.

Q: You recently responded to a question about a roommate situation in which one of the roommates simply left over the weekend and the remaining roommate was stuck paying the full amount of the rent until he could find a new roommate that the landlord would approve.

This happened to me when my ex-girlfriend abandoned me and the lease, refusing to pay her half of the rent. I paid my half to the landlord to keep in good graces with him, but that is all I can afford. The landlord seems to be on my side, so my question is this: Can the landlord go after my ex instead of me for the defaulted balance, costs, etc., associated with her abandoning the lease?

I ask because I understand the landlord is entitled to and will get the unpaid or lost rent as well as damages to re-rent the property due to this breach of contract. I understand he can go after me or my security deposit if he wants. However, if the landlord wishes to just pursue the “guilty” party, is it possible for him to sue and collect from that party alone in any way?

A: As you seem to clearly understand, you and your roommate are “joint and severally”

responsible for the full amount of the lease as well as all of the other terms such as damage. This legal language essentially means that you are both (joint) and individually (think of severe as in separately) obligated for all the legal and financial aspects of your lease.

Yes, your landlord could choose to understand your situation in which your roommate suddenly abandoned the rental unit and left you responsible for the full amount of the rent. He could decide that you are not responsible for the “other half” of the rent. There is no legal restriction other than a landlord needs to be cognizant of fair housing laws and not allow some tenants grace while punishing others.

However, in my 30-plus years of experience, not too many landlords are willing to agree that a roommate paying “his half” is not obligated for the full rental value. Most landlords have mortgages and need the full rental income to cover their ownership and operating expenses. So, if your landlord is willing to make an exception for you, I’d say you are a very lucky person and have a great landlord.

via inman.com

10 essentials when buying, storing firewood | South Salem NY Real Estate

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With rising fuel costs and wildfires in a lot of forested areas, whether you buy firewood or cut your own, you’re almost sure to see an increase in the cost of the wood you burn this year. So whether that firewood is your primary source of heat or just cheery ambiance on a cold night, it pays to invest wisely and then protect your investment.

Buying firewood

If you buy firewood, there are a number of different sources where you can locate it. Many people turn to their local newspaper, Craigslist or maybe a community bulletin board. Other — and sometimes more reliable — sources of firewood include local tree-trimming services, fireplace shops, and retailers that sell and service chainsaws and related cutting equipment.

Firewood is sold by the cord, which is a stack of wood 4 feet high, 4 feet deep and 8 feet long (128 cubic feet). Firewood is obviously irregular in shape, so the stack also includes the air spaces between the pieces.

That’s what a cord should look like in a perfect world. Ideally, the dealer you’re buying the wood from will deliver it in a truck that makes verification of the load easy, such as a 4-by-8-foot truck bed, with wood stacked 4 feet high. That doesn’t always happen, and you need to be careful when you see a truck roll up with wood tossed in the back: A sloping pile of firewood in a standard pickup truck may contain only 3/4 of a cord.

The other thing you’ll be looking for when you buy your wood is whether it’s dry, also sometimes called “seasoned,” or whether it’s “green.” Dry firewood has been out in the air for a while since it was cut, allowing a significant amount of the wood’s moisture to evaporate, typically down to a moisture content of around 20 percent or less. Green wood still has a lot of the moisture in it — as much as 40 percent — so when you burn it, the fire has to first evaporate that moisture. Therefore the wood burns cooler, and you get less heat energy per cord.

Visually inspect the wood that you buy. Dry wood feels light, has loose bark and darkened ends with clearly visible splits, and makes a very definite “thunking” noise when you hit two pieces together. Wet wood is just the opposite, and will sound dull and heavy when knocked together.

You’ll typically pay a little more for dry wood, but it’s worth the cost if you plan to burn it right away. If you’re going to store the wood for burning next season, then you can save some money by buying green wood and letting it dry.

There are a couple of other ways to save some money when you buy your wood. If you have a truck or a trailer, you might be able to pick the wood up yourself at the dealer’s lot and save delivery charges, and also verify your full cord at the same time. If you have wood delivered, there’ll be an extra charge for stacking, so do that chore yourself if you can. Also, you can usually get firewood in full rounds, or pre-split. If you’re ambitious, consider getting rounds — they’re cheaper, and you can get some great outdoor exercise by doing your own splitting.

Storing and seasoning the wood

Most people store a good portion of their wood supply outside where it can continue to dry and season, and keep a small portion nearby where it’s accessible and ready for use.

Long-term storage areas should be located outside where wind and sun can help with the drying. However, to minimize danger in the event of a wildfire, and also to protect your home’s siding in case the firewood contains any insects, the wood shouldn’t be stacked directly against your house. Also, wood that’s left out in the elements, even if it’s dry, will reabsorb water from rain and snow, as well as from the ground. This will cause it to become too wet to burn efficiently, and eventually it will rot.

Ideally, consider creating an outdoor storage shed for your firewood, with a raised floor, a sloped roof for runoff, and open sides for easy access and unimpeded air circulation. Make it large enough to hold a year’s worth of wood — typically two to four cords, depending on your burning habits.

After the wood is dry, most people create a smaller storage area inside the house, such as in the garage or basement. Depending on your habits and the accessibility of your outside supply, the inside supply could be as small as two or three days’ worth, or large enough to accommodate several weeks of wood.

Finally, create some storage right at the fireplace or wood stove. One very nice solution is a canvas carrying bag with enclosed ends and sides. The wood is stacked in the bag for carrying, then the bag hooks over a decorative metal frame near the fireplace for storage, containing the wood inside the bag to minimize the mess.

You might also consider a decorative metal tub or other container to hold one or two nights’ worth of wood while keeping the dirt and chips contained. While not quite as neat, there are also a number of very attractive open metal storage racks offered by various manufacturers.

Any wood that you store inside needs to be far enough away from the fireplace that it can’t combust. And most importantly, never store newspapers, kindling, pinecones or other easily combustible fire-starting materials next to your fireplace. They can and do start house fires!

via inman.com

Bedford Hills NY Real Estate | Jobless claims shoot back up to 388,000 filings

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After a week of positive employment data, jobless claims shot back up for the week ending Oct. 13, derailing confidence in the economic recovery.

The Labor Department reported 388,000 jobless claims for the week, an increase of 46,000 filings from the prior week’s revised figure of 342,000.

The four-week moving average hit 365,500, which is higher than the 364,750 level established a week prior.

Seasonal adjustments in California contributed to the quick jump in claims, Econoday researchers said Thursday. The jump was expected at the beginning of the quarter, but came in the second week of the period, the research firm said.

“This is a major factor behind violent swings in weekly jobless claims, up 46,000 in the October 13 week after dropping a revised 27,000 in the prior week,” Econoday said. “Swings like this, which weekly data are subject to, put in focus the four-week average which is only slightly higher, up less than 1,000 to 365,500.”

The news disrupts a few weeks of moderately optimistic reports with the unemployment rate falling to 7.8% in September as nonfarm payrolls rose by 114,000 positions, according to the U.S. Bureau of Labor Statistics.

via housingwire.com

Pound Ridge Homes for Sale | Existing home sales fall, but up 11% from last year

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September existing-home sales fell slightly from the previous month, but remain well above year-ago levels as prices continue to escalate on new demand in key real estate markets.

The National Association of Realtors said existing-home sales declined 1.7% from August to September, with 4.75 million units sold last month, down from 4.83 million in August. Still, September numbers are up 11% from the 4.28 million units sold a year ago.

Overall, real estate is performing better than it was in 2011 with September home prices recording their seventh consecutive month of year-over-year increases, NAR said.

“Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery,” said Lawrence Yun, chief economist with NAR.  “More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.”

The national median price for an existing home shot up 11.3% from last year to $183,900 in September, making it the seventh consecutive month of annual price increases.

Distressed properties, including foreclosures and short sales, represented 24% of all September sales, an increase from 22% in August and down from 30% a year ago.

Foreclosures generally sold at a 21% discount while short sales sold 13% under market value in September, NAR said.

The country’s total pipeline of existing inventory fell 3.3% in September to 2.32 million homes, which reflects a 5.9-month supply. Today’s inventory level is 20% below year ago levels when the nation carried an eight-month supply.

“The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production,” Yun said.

Homes also are spending less time on the market, with the median listing time now running 70 days, down from 101 days in September of 2011. About 32% of homes sold last month spent less than 30 days on the market. Nineteen percent remained listed for six months or longer.

via housingwire.com

Housing Starts Blow Away the Experts | Armonk NY Real Estate

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More new residential units were started in September than any month since July 2008, blowing away expectations and making national headlines for the resurgence in home construction.

The number of new privately owned housing units that began construction was up for the third straight month.  Starts reached 872,000 units, above the 770,000 expected by a Bloomberg survey of economists and surpassed by 15 percent the upwardly revised to a 758,000 unit rate in August   September starts also exceeded September 2011 by 34.8 percent, the Commerce Department said yesterday,

Building permits, a precursor of future construction activity, also bounced back, up 11.6 percent from August and 45.1 percent from a year earlier. Building permits reached 894,000 units in September.  The increase in building permits suggests the gains in starts will be sustained for months to come.

Single-family starts were a major component of the increase, coming in at an annualized rate of 603,000 units during September, which is 11 percent above August and fully 27.3 percent more than the same month last year. Apartment starts (five units or more) were up 22.8 percent month-over-month and nearly doubled year-over-year, up 93.4 percent, though they tend to be jumpy.

The single family construction numbers are a positive sign for the market as they suggest that homebuilders feel confident in low inventories and are willing to delve back into the market despite tight financing that often requires self-funding of projects.  On Tuesday, the National Assn. of Home Builders/Wells Fargo Housing Market Index showed that builder confidence in the market for new single-family homes rose for the sixth straight month to its highest level since mid-2006.

“It’s no longer a question of whether the industry is rebounding,” Larry Sorsby, chief financial officer of Red Bank, New Jersey-based Hovnanian Enterprises Inc. (HOV), the best-performing homebuilding stock this year, told Bloomberg News in a telephone interview. “There is clear evidence that we have bounced off the bottom and are in the midst of a recovery.”

The September new starts report was “surprisingly strong,” said David Crowe, chief economist at the National Assn. of Home Builders.  “As consumer confidence rises and jobs return, more local markets and more consumers will join the buyer market and I expect housing construction to continue a modest but fairly steady rise throughout 2013 and into 2014,” Crowe wrote in a blog post.

While the annual rate of new home starts still is far below the peak of more than 2.2 million units reached in early 2006 during the peak of the housing bubble, the pace has picked up dramatically from the low of 478,000 in April 2009, and is up sharply from the 706,000 annual rate in May.

via realestateeconomywatch.com