Even in His Home, Steve Jobs Embraced Smaller as Better

AppleLogoSteveJobsProfileApple innovator Steve Jobs embraced small-is-better kitchens ahead of his time.

Looks like Steve Jobs was an iconoclast when it came to homes and kitchens, too.

Although Americans lately have embraced smaller homes http://www.houselogic.com/home-advice/maintenance-repair/your-small-home-5-big-reasons-love-it/, shrinking their average size by 5% from 2007 to 2010, Jobs thought smaller was better even 18 years ago, according to British kitchen designer Johnny Grey, who worked with Jobs in the mid-1990s.

Steve Jobs and his wife Laurene almost had one of my kitchens. We’re going back 18 years to the autumn of 1994 when they contacted me through a mutual friend. I am sad to say they did not in the end go through with the kitchen, but I worked productively with the two of them as far as the production drawing stage.

Snapshot of design for Steve and Laurene\'s kitchen.

Remarkably, for one of the world’s richest individuals, Jobs lived in modest style. He and Laurene were in their mid-to-late thirties when we met but did not seem interested in setting themselves up with bourgeois comfort and display. Instead, despite having two children, they lived a bit like self-disciplined students: the first things you saw inside the front door were a plumbed-in washing machine and a dryer (temporarily located there during building modifications). This was in Palo Alto in what they called their cottage, which they preferred to the big house down the coast in Woodside. They liked to think of the cottage as English. It was vaguely Arts and Crafts in style, a relaxed-looking interior somewhat under-furnished with Persian rugs and freestanding pieces. Unmissable was their love of music with piles of CDs, records and guitars about the place, the only objects that might amount to clutter. Unlike a real English cottage the house was light and spacious.

I went on to design a kitchen, utility rooms and some furniture. The kitchen brief was to keep a modern Arts and Crafts look in mind, with plenty of space for prepping and a circular central island. A walk-in cool chamber was an innovative feature.  The Jobs were staunch vegetarians, Laurene having set up a vegan food business. The kitchen was where they lived, albeit inherited from a previous owner, and consisted of boring white units with tiled tops and wooden edges. Nevertheless, it was the setting for the kind hospitality they showed to me, most of it on a cramped table in the corner sitting on chairs with wobbly legs.

As members of the Whole Earth Catalogue generation, vegetable gardening and self-sufficiency were important to the Jobs. We talked about redesigning the garden to provide more privacy for the house. Steve’s love of gardens was not generally known. We discussed creating outdoor rooms with borders, wild flowers clustered together to ensure plenty of color, with privacy from the street. I spent time helping him find an English gardener.

During the following three years I saw Steve and Laurene at their home when I visited to polish up the design. We once met in London at the Savoy hotel during one of his rushed, but highly publicized European trips. His comments, as you might expect knowing his track record at Apple, were brief and to the point, mostly in the direction of simplifying the design, staking out a more severe, monastic approach. Shaker simplicity was often his default position. I suspect he became more of a modernist in the late nineties.

He was a very private person and reluctant to have any building work done, powerfully disliking noise, mess and invasion of their home. Steve recommended that I open a showroom in San Francisco, and I duly did in 1999. He said Americans needed to employ more serious design skills in their kitchens. The Jobs still live in the same house today. I noticed fans were scrawling messages on the pavement in front in a news clip today

He re-enforced a myth I grew up with, that America was the future, and that its technology was going to lead the world to a better place. We will be poorer off without him.

RIP

Do you have any memories of Steve Jobs? Have you ever designed a project that you didn’t construct?

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IMPRESSIVE KAMALA HEADLAND VILLA FOR SALE | PHUKET THAILAND | Image

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A guide to administration's new mortgage-refi plan

low-interest-refinance-mortgages-works-for-the-borrower-esBy DEREK KRAVITZ, The Associated Press

Two big questions loom over the Obama administration’s latest bid to help troubled homeowners: Will it work? And who would benefit?

By easing eligibility rules, the administration hopes 1 million more homeowners will qualify for its refinancing program and lower their mortgage payments — twice the number who have already. The program has helped only a fraction of the number the administration had envisioned.

In part, that’s because many homeowners who would like to refinance can’t because they owe more on their mortgage than their home is worth. But it’s also because banks are under no obligation to refinance a mortgage they hold — a limitation that won’t change under the new plan.

Here are some of the major questions and answers about the administration’s initiative:

What is the program?

The Home Affordable Refinance Program, or HARP, was started in 2009. It lets homeowners refinance their mortgages at lower rates. Borrowers can bypass the usual requirement of having at least 20 percent equity in their home. But few people have signed up. Many "underwater" borrowers — those who owe more than their homes are worth — couldn’t qualify under the program. Roughly 22.5 percent of U.S. homeowners, about 11 million, are underwater, according to CoreLogic, a real estate data firm. As of Aug. 31, fewer than 900,000 homeowners, and just 72,000 underwater homeowners, have refinanced through the administration’s program. The administration had estimated that the program would help 4 million to 5 million homeowners.

Why did so few benefit?

Mainly because those who’d lost the most in their homes weren’t eligible. Participation was limited to those whose home values were no more than 25 percent below what Home-Mortgage-Loans-bgthey owed their lender. That excluded roughly 10 percent of borrowers, CoreLogic says. In some hard-hit areas, borrowers have lost nearly 50 percent of their home’s value. Another problem: Homeowners must pay thousands in closing costs and appraisal fees to refinance. Typically, that adds up to 1 percent of the loan’s value — $2,000 in fees on a $200,000 loan. Sinking home prices also left many fearful that prices had yet to bottom. They didn’t want to throw good money after a depreciating asset. Or their credit scores were too low. Housing Secretary Shaun Donovan acknowledged that the program has "not reached the scale we had hoped."

What changes is the administration making?

Homeowners’ eligibility won’t be affected by how far their home’s value has fallen. And some fees for closing, title insurance and lien processing will be eliminated. So refinancing will be cheaper. The number of homeowners who need an appraisal will be reduced, saving more money. Some fees for those who refinance into a shorter-term mortgage will also be waived. Banks won’t have to buy back the mortgages from Fannie or Freddie, as they previously had to when dealing with some risky loans. That change will free many lenders to offer refinance loans. The program will also be extended 18 months, through 2013.

Related: White House tries new tack on housing

Who’s eligible?

Those whose loans are owned or backed by Fannie Mae or Freddie Mac, which the government took control of two years ago. Fannie and Freddie own or guarantee about half of all U.S. mortgages — nearly 31 million loans. They buy loans from lenders, package them into bonds with a guarantee against default and sell them to investors. To qualify for refinancing, a loan must have been sold to Fannie and Freddie before June 2009. Homeowners can determine whether their mortgage is owned by Fannie or Freddie by going online: Freddie’s loan tool is at freddiemac.com/mymortgage; Fannie’s is atfanniemae.com/loanlookup. Mortgages that were refinanced over the past 2½ years aren’t eligible. Homeowners must also be current on their mortgage. One late payment within six months, or more than one in the past year, would mean disqualification. Perhaps the biggest limitation on the program: It’s voluntary for lenders. A bank remains free to reject a refinancing even if a homeowner meets all requirements.

Will it work?

For those who can qualify, the savings could be significant. If, for example, a homeowner with a $200,000 mortgage at 6 percent can refinance down to 4.5 percent, the savings would be $3,000 a year. But the benefit to the economy will likely be limited. Even homeowners who are eligible and who choose to refinance through the government program could opt to sock away their savings or pay down debt rather than spend it.

How many homeowners will be eligible or will choose to participate?

Not entirely clear. The government estimates that up to 1 million more people could qualify. Moody’s Analytics says the figure could be as high as 1.6 million. Both figures are a fraction of the 11 million or more homeowners who are underwater, according to CoreLogic, a real estate data research firm.

Who will benefit most?

Underwater homeowners in the hard-hit states of Arizona, California, Florida and Nevada could be greatly helped. Many are stuck with high mortgage rates after they were approved for mortgages with little or no money as a down payment and few requirements. The average annual savings for a U.S. household would be $2,500, officials say.

When will it start?

Fannie and Freddie will issue the full details of the plan lenders and servicers on Nov. 15, officials say. The revamped program could be in place for some lenders as early as Dec. 1.

Federal Housing Agency Announces Changes to Mortgage Refinancing Program

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Yesterday the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac announced several changes to the Home Affordable Refinance Program (HARP), the details of which can be found here:http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

While the specific changes will not be released until November 15, 2011, below are some of the enhancements that were included in yesterday’s announcement:

  • No Loan-to-Value Limit:  Under the current program borrowers are limited to a maximum mortgage of 125% of the home’s current value.  By eliminating the loan-to-value limit the program will apply to more homeowners who are currently underwater on their mortgage.
  • Lower Loan Level Price Adjustments (”LLPA’s”) and no LLPA’s on loans with terms of 20 years or less; the end result will be a reduction in the costs of refinancing for most borrowers.
  • Increase in the number of loans eligible for Property Inspection Waivers.  Much like the LLPA issue, the end result will be a reduction in the cost of refinancing for more borrowers.

Given that the agencies will not release the final draft of the changes until the middle of November, right now we are in a “wait and see” mode as to the ultimate impact these changes will have.  However, from an initial glance the changes coming are a positive step in making the HAMP program available to more homeowners.

Is This A Solution?

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What do you think? Comment below…

See Much The Homebuilder Stocks Have Rallied

chart-of-the-day-spdr-series-trust-spdr-homebuilders-october-2011

This morning, Citigroup analyst Josh Levin pointed out that inventory of available homes for sale has been collapsing, and that the media hasn’t paid attention to this major shift in housing market dynamics.

That may be true, but the market has definitely noticed something going on.

The homebuilder stocks have been on a rocket-ride since the beginning of the quarter, with XHB (the homebduiler ETF) rallying a ridiculous 32% since its low on October 3. It hit a low of 12.21 and is now at around 16.12.

This is a monster move in one of the most hated sectors in the world, and so obviously needs to be paid attention to.

Read more: http://www.businessinsider.com/chart-of-the-day-xhb-rally-2011-10?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Money%20Game%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_102411#ixzz1bjibHdWx

Rising Rents Improve Investors’ Returns

real estate investorWith rents rising faster than last year, the picture for residential real estate investors is getting even better than it already was as a result of once-in-a-generation prices and low interest rates, according to the founder of a leading Internet platform for investors and real estate professionals.

Greg Rand, CEO of OwnAmerica, downplays concerns over near term price declines and urges investors to take a long view of the opportunities.

“This is a long term investment,” says Rand, who differs with what he calls the “get rich quick” approach to investing. “Rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long term investors who take a long term view.”

Rents are growing at a 5.17 percent annualized rate compared to a 4.72 percent at this time last year Assuming effective rent grows at the same rate in the next four months as it did in 2010, the full-year total would fall just below the historic highs of 2000 (6.18 percent) and 2005 (5.81 percent), according to a report from Axiometrics Inc., a provider of data and analysis on the apartment market.

With 1.4 million new renters this year, apartment construction can’t keep up with demand. Tenants, especially former homeowners forced from their homes because of the economy, are increasingly turning to single family homes owned by investors, especially in high foreclosure markets like Las Vegas.

During this year, investors have accounted for between 20 and 40 percent of monthly existing home sales, according to surveys of Realtors by Campbell/Inside Mortgage Finance and the National Association of Realtors. Yet, the investor market share may increase even more next year.

A survey by Realtor.com in April found that by a three to one margin, investors plan to be more active in their local markets compared to typical homebuyers in the next 24 months, and 69 percent of investors say it’ll be easier to find properties in the near future.

Most investors are newcomers. Fifty-nine percent (59%) said they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.

Author of “Crash! Boom,” Rand argues that even in the Great Depression, owning real estate was always better than not owning real estate. Holding real estate for the long term has always been a formula for success and most family wealth has been accumulated by purchasing real estate and keeping it in the family for many generations. Real estate plus time usually equals success.

There are 6 million people who went from being owners to being renters, Rand says. “The stars are aligned to make this the best time in modern history to be a landlord,” he wrote in his book.

If you are interested in exploring investment opportunities, call me @ 206-713-3244 or email Emmanuel@EmmanuelFonte.com

Senate backs plan to help Americans buy homes

first-time-home-buyers-7WASHINGTON — The Senate on Thursday backed a measure to help bolster the housing market by making it easier for people to afford a home in wealthier neighborhoods.

The Senate voted 60-38 to attach the proposal to a spending bill that the chamber will consider later this year. It would restore the size of the loans the government buys or insures to a maximum of $729,500 from the previous cap of $625,500.

The cap, known as the "conforming loan limit," determines the maximum size of loans the Federal Housing Administration and the government’s mortgage buyers, Fannie Mae and Freddie Mac, can buy or guarantee.

The higher loan limit expired at the end of September and was touted as one of the Obama administration’s short-term plans to shrink the government’s role in the mortgage market.

But with the housing sector hurting the country’s economic recovery, lawmakers and the administration are looking for solutions.

"Getting our housing market moving again is one of the most important tasks facing the country," said Robert Menendez, a Democrat from New Jersey who introduced the bill amendment.

The majority of Senators agreed that the lower loan limit was making a weak housing market even weaker. "It makes it harder for middle class homebuyers to get credit when credit is tight," Menendez said.

It is unclear what will ultimately happen to the provision, given the deep divisions within the Democratic-led Senate and Republican-controlled House of Representatives. It would have to pass both chambers before President Barack Obama, a Democrat, could sign it into law.

Republican Senator Richard Shelby said the measure would help homebuyers who "do not need federal subsidies." "This is not a good use of taxpayer dollars," he said.

Republicans in the House have been trying to quickly unwind Fannie Mae and Freddie Mac, which were seized by the government at the height of the financial crisis and now back the bulk of the mortgage market. But the administration has cautioned against removing the government’s support before the housing sector starts to stabilize.

Copyright 2011 Thomson Reuters

Rental Market Emerges as Housing’s Bright Spot

rent“With rental demand rising and apartment economics improving, the multifamily sector is a positive signal for the U.S. housing industry,” writes Frank Nothaft, Freddie Mac’s Chief Economist, in the October 2011 U.S. Economic and Housing Market Outlook.

An increase of 1.4 million households moved into rental housing in the year ending June 2011–a 4 percent rise in the number of tenant households in one year alone, the Census Bureau reports. Meanwhile, the home ownership rate dropped about 1.5 percent over the past year.

“While home sales remain sluggish despite the most affordable purchase market in decades, households have turned to rental to meet their shelter needs,” Nothaft writes in the report.

The increase in rental demand is due partially to some households who may have faced a short sale or foreclosure of a home they owned, Nothaft notes. However, he says most of the rental demand is coming from young and newly formed households, who are postponing home ownership. The home ownership rate for household heads under 30 years of age has fallen the sharpest in recent years.

As demand increases, vacancy rates are dropping and rents are rising. New construction for larger apartment buildings is also increasing, as property sales rise. Dollar-sales volume of apartment buildings was at its highest point in the second quarter since 2007, according to Real Capital Analytics. New construction starts of apartment buildings with at least 20 dwellings is also on the rise, posting its highest level since the end of 2008 in the second quarter too.

Source: Freddie Mac: October 2011 Economic Outlook