by Roselind Hejl
"Two story brick traditional with 4 bedrooms, 2.5 baths, island kitchen, and large deck!" Sound familiar? We often talk about houses in terms of room count, along with a list of finishes, such as tile floors, granite counters, or faux paint. While this vocabulary conveys certain facts, it does not provide the tools to think about how to re-design a house in a fabulous way.
It is valuable to be able to make the decisions that transform a poor design into a house that is memorable, enduring, and widely appealing. To do this we need to go deeper than simply updating finishes or increasing square footage. We must think about how the structure shapes the feelings and experience of its inhabitants. In the words of Winston Churchill, "We shape our buildings, and afterwards our buildings shape us." When a house has design flaws, we know intuitively that it does not feel right. On the other hand, a well designed house can make us feel inspired, enriched, and touched by a sense of order.
We often see houses that have some elements in the structure and site that appeal to us, but cannot be lived in without remodeling. Often our clients say that they want to find a house with good bones (meaning good basic design), that they can update. The truth is that most houses have some good design and some bad design. Painting walls and updating fixtures will not cover bad design. You will need to think about the house in a deeper way. Use these design processes to help you make the difficult decisions that will result in a house that many people would love to live in.
1. Relate the house to the site.
Think about how the house integrates and interacts with the land around it. This awareness is a basic, but often ignored, beginning. The connection and interplay between interior and exterior spaces enhances both in a powerful way.
Manage the views from each window. Is there an undesirable view into a neighbor's home or yard? Is there a nice view that is blocked by a wall or fireplace?
Notice how the walkway leads to the street, where privacy is needed, where noise buffering is needed, how drainage will work.
A side area could be a private garden, accessible from the main bedroom. A front porch overlooking the street could bring the house into a relationship with the neighborhood.
2. Bring in natural light.
Houses can be transformed by adding windows and other light sources. Generous light feels safe and uplifting, and attracts people toward it.
Natural light raises the level of importance and the beauty of rooms. Light all main rooms from two sides, if possible, to reduce glare and balance the light. Use glass doors, windows, skylights, transoms, or light tunnels.
Keep passive solar techniques in mind as you add windows and shading devices. The control of solar energy for light and heat is fundamental for an efficient and comfortable home.
3. Break down hard barriers between indoor and outdoor spaces.
Glass doors, screens, and walls that slide open can create semi-transparent walls, forming indoor/outdoor spaces that have enormous appeal.
Breezeways, garden rooms, bay windows, and screened porches are spaces that people love. These bring people into contact with the outdoors, yet may be furnished in a comfortable way.
4. Think of outdoor spaces as large rooms.
When all areas of the site are thought of as living spaces, new ideas open up. These outdoor spaces expand the house by creating a sense of semi-enclosure in various ways.
Their edges can be defined by trees, fences, wings of the house or other buildings. For example, an outdoor room may be a shady natural space on the site enclosed by a line of trees and shrubs.
Outdoor living spaces can be courtyards, walled gardens, trellis covered breezeways, stone patios, or outdoor showers. Think about their use and connectedness to the house.
Often, we see an exterior space that is built as an isolated destination place - a second floor deck, for example. If you have to make an effort to go there, the space will not be used. Outdoor spaces are most used when they are on paths used by people coming and going. This is why a front porch is a very appealing design element. People naturally meet here, and the porch connects with neighbors walking by.
A popular outdoor living area is the backyard deck. This is often seems to be an afterthought, tacked onto the house. Can it be covered and screened?
5. Consider widening roof overhangs or adding propped shutters over windows.
This is a green building technique in warm climates, blocking solar penetration.
The view of the outside roof structure seen from inside the house evokes a sense of shelter and protection.
If possible, extend the roof in some areas to create covered porches or breezeways. Rooms that are simultaneously open and protected are very appealing.
Inside the house, exposed rafters, rustic beams, or wood surfaces on the ceiling create feelings of strength and character in the home.
6. Review traffic flow - a crucial, but often ignored, design element.
Walk down the paths that bring you inside the front door, then lead you to various rooms through the house, and again to the outdoors. Do they cut through the middle of living areas? When this happens the living area will never feel complete and comfortable.
Circulation paths should lead along the edges of main rooms, and efficiently to private rooms. A maze like floorplan creates a sense of wasted energy and confusion. Few exterior doors may result in a subtle feeling of being trapped.
Bring multiple uses to hallways and connecting spaces with bookshelves, windows or window seats.
Set apart the main entrance with details such as a covered place to stand, special doors, benches, or potted plants.
7. Compare the sizes of rooms in proportion to each other.
People have an intuitive sense of the correct hierarchy of spaces. Small living spaces will seem wrong when combined with large bedrooms.
Homes with awkward design can often be improved by removing walls to make one large space from several smaller ones.
Consider the use and function of each room. Is the room to be used privately, such as a bedroom, study, or library? Or, will the family gather here to cook and eat informally? Some houses include formal areas, others do not. Some have many rooms, others are very open. There is no right or wrong decision here. Houses that have a true and intuitive appeal have a clarity as to the function of each room.
8. Choose materials as an integral part of the design - not as decorator selections made at the end.
For example, structural materials can be exposed, or flooring can be used to connect and unify spaces.
Bring in the beauty and texture of natural materials. Use materials that offset each other - warm and cool colors, rough and smooth textures, solid and delicate walls.
Use materials to connect the house to the site - for example, a wood clad house surrounded by woods, or a stone house next to outcroppings of stone. Or, connect the house to the neighborhood with historic colors and siding. Repeat materials and colors to unify the interior and exterior.
Wednesday, January 31, 2007
Saturday, January 20, 2007
Are Housing Starts Up... or Down?
John Mauldin writes the following in his newsletter:
When Housing Up 4.5% Is Really Down 4.1%
Sometimes you really just have to look under the hood of some of the headlines. I must admit I was rather surprised to read yesterday that housing starts were up 4.5% in December. With both of new and existing home inventories rising, this just did not make sense. But there it was. The TV pundits and the financial press were full of analysts telling us we have seen the bottom in housing. So much for my thoughts of a housing led recession. Was it the weather? Overly optimistic builders? Or was I just wrong and the bottom in the housing slowdown had been reached quicker than it has in previous housing slowdowns.
It turns out that new home construction did not rise. In fact, if you look at the data, new home construction was down by 4.1%. What was up was multi-family apartment construction which by a very robust 19%. And that makes perfect sense. Look at the CPI data released yesterday. What has been consistently the biggest source of inflation for the past two years? Rent, or rather, homeowner equivalent rent. It was up over 4% over the last 12 months.
The demand for housing is falling and sub-prime mortgages are harder to get. But people have to live somewhere. The population is growing and the demand for a place to live will rise. And the demand will be in rental units. Rising prices? Increased demand? Money is cheap and willing to take lower returns? And there are a lot of construction firms that I bet are willing to put in lower bids as new home construction is down. There is a need to keep your employees working. That sounds like a recipe for a lot of people to decide to start building apartments. But there is one more factor. There is a glut of condominiums almost everywhere.
If you go to Google and type in "housing foreclosures" you find several stories in the past few days of high end condominium developers changing their project to lower priced apartment complexes. They have a great deal invested in land and planning and have to do something. Banks are not lending for condominiums without significant guarantees. Of course, a lot of new apartments means that prices will not rise as much because of more supply. And that means that those looking for housing will have more options, which won't help housing sales.
What triggered my interest in housing foreclosures? Headlines in the business section for the Fort Worth Star-Telegram say that February listings for housing foreclosures are up 15.7% to a new record high. Looking at the plethora of stories on Google, you find that is the case all over the nation. The stories have a similar ring to them. You can substitute place and data, but they all seem to have a quote like this from the Star-Telegram: "...the main factors are job loss, serious illness or divorce. But in recent years, people have run into trouble when the interest rates have risen on their adjustable rate mortgages. Higher energy prices have also been a factor."
There was a different culprit in Las Vegas and a few markets where "investors" came in and bought homes expecting to flip them before they had to actually take out that mortgage. There was 1 home in the foreclosure process for every 277 households in Clark County (Las Vegas). That is significant.
One other item:
Sam Zell sent a Christmas card to his friends with a song called Capital Keeps Falling on My Head to the tune of Raindrops Keeps Falling on My Head. You can listen at http://www.yieldsz.com. It is really worth the time. I mean, you really need to listen. It is quite thought-provoking as well as a lot of fun.
~~~~ by John Mauldin
If you would like to reproduce any of John Mauldin's E-Letters you must include the source of your quote and an email address (John@FrontLineThoughts.com)
When Housing Up 4.5% Is Really Down 4.1%
Sometimes you really just have to look under the hood of some of the headlines. I must admit I was rather surprised to read yesterday that housing starts were up 4.5% in December. With both of new and existing home inventories rising, this just did not make sense. But there it was. The TV pundits and the financial press were full of analysts telling us we have seen the bottom in housing. So much for my thoughts of a housing led recession. Was it the weather? Overly optimistic builders? Or was I just wrong and the bottom in the housing slowdown had been reached quicker than it has in previous housing slowdowns.
It turns out that new home construction did not rise. In fact, if you look at the data, new home construction was down by 4.1%. What was up was multi-family apartment construction which by a very robust 19%. And that makes perfect sense. Look at the CPI data released yesterday. What has been consistently the biggest source of inflation for the past two years? Rent, or rather, homeowner equivalent rent. It was up over 4% over the last 12 months.
The demand for housing is falling and sub-prime mortgages are harder to get. But people have to live somewhere. The population is growing and the demand for a place to live will rise. And the demand will be in rental units. Rising prices? Increased demand? Money is cheap and willing to take lower returns? And there are a lot of construction firms that I bet are willing to put in lower bids as new home construction is down. There is a need to keep your employees working. That sounds like a recipe for a lot of people to decide to start building apartments. But there is one more factor. There is a glut of condominiums almost everywhere.
If you go to Google and type in "housing foreclosures" you find several stories in the past few days of high end condominium developers changing their project to lower priced apartment complexes. They have a great deal invested in land and planning and have to do something. Banks are not lending for condominiums without significant guarantees. Of course, a lot of new apartments means that prices will not rise as much because of more supply. And that means that those looking for housing will have more options, which won't help housing sales.
What triggered my interest in housing foreclosures? Headlines in the business section for the Fort Worth Star-Telegram say that February listings for housing foreclosures are up 15.7% to a new record high. Looking at the plethora of stories on Google, you find that is the case all over the nation. The stories have a similar ring to them. You can substitute place and data, but they all seem to have a quote like this from the Star-Telegram: "...the main factors are job loss, serious illness or divorce. But in recent years, people have run into trouble when the interest rates have risen on their adjustable rate mortgages. Higher energy prices have also been a factor."
There was a different culprit in Las Vegas and a few markets where "investors" came in and bought homes expecting to flip them before they had to actually take out that mortgage. There was 1 home in the foreclosure process for every 277 households in Clark County (Las Vegas). That is significant.
One other item:
Sam Zell sent a Christmas card to his friends with a song called Capital Keeps Falling on My Head to the tune of Raindrops Keeps Falling on My Head. You can listen at http://www.yieldsz.com. It is really worth the time. I mean, you really need to listen. It is quite thought-provoking as well as a lot of fun.
~~~~ by John Mauldin
If you would like to reproduce any of John Mauldin's E-Letters you must include the source of your quote and an email address (John@FrontLineThoughts.com)
Friday, January 05, 2007
Lennar (Newhall Land) Sees Tough Going Ahead
What a difference perspective makes!
Our local paper, The Mighty Signal, had an article a couple of days ago that was the front page leader, announcing that Lennar and its partner LNR Property Corp. had sold a 62% stake in their LandSource joint venture, whose primary investment, Newhall Land and Farming, owns 15,000 acres in the Santa Clarita Valley. The article went on to imply that this was little more than an accounting move, and Lennar and Newhall Land is still firmly committed to developing the Newhall Ranch development west of the I-5.
The Wall Street Journal, in an article dated 1-3-2007, had an entirely different take on the story.
"Lennar Corp. Chief Executive Stuart Miller said he sees no signs the home building market has hit bottom, signaling the industry could continue to face pressure on its financial results," writes Janet Morrissey. "Lennar said it slashed its exposure in California, where market conditions have been deteriorating."
Morrissey goes on, "'It sends a signal that they don't want to have their capital at risk in Southern California for the next few years,' said Raymond James Financial Inc. analyst Rick Murray. He sees the sale as a sign the company doesn't believe a rebound in California will happen in the near future."
While Lennar has experienced a decline in sales that is much less than many of its competitors lately, between price slashing and incentives given for home purchases and the lower level of sales, Lennar has said its gross profit margins will continue a trend to be 'materially lower' according to the WSJ article.
This, combined with Lennar's removal of the Madison properties from sale indicates that NL&F sees a less than rosy picture for SCV housing, at least in the immediate future. The Madison is an apartment to condo conversion development in the Town Center area, across the street from the Westfield Mall area.
The WSJ article stands in stark contrast to the Signal's puff piece on what Lennar's sale of the majority of its holdings in Newhall Land. But what else can you expect from the Signal? It remains the mouthpiece of Santa Clarita's major land developer.
While this author remains generally upbeat about the stability of the housing market, at least locally, the difference in tone between the WSJ and the Signal articles shows that you the reader would be well advised to continue to read The Real Blog, where we are committed to giving you information about what is really happening in the housing market.
Our local paper, The Mighty Signal, had an article a couple of days ago that was the front page leader, announcing that Lennar and its partner LNR Property Corp. had sold a 62% stake in their LandSource joint venture, whose primary investment, Newhall Land and Farming, owns 15,000 acres in the Santa Clarita Valley. The article went on to imply that this was little more than an accounting move, and Lennar and Newhall Land is still firmly committed to developing the Newhall Ranch development west of the I-5.
The Wall Street Journal, in an article dated 1-3-2007, had an entirely different take on the story.
"Lennar Corp. Chief Executive Stuart Miller said he sees no signs the home building market has hit bottom, signaling the industry could continue to face pressure on its financial results," writes Janet Morrissey. "Lennar said it slashed its exposure in California, where market conditions have been deteriorating."
Morrissey goes on, "'It sends a signal that they don't want to have their capital at risk in Southern California for the next few years,' said Raymond James Financial Inc. analyst Rick Murray. He sees the sale as a sign the company doesn't believe a rebound in California will happen in the near future."
While Lennar has experienced a decline in sales that is much less than many of its competitors lately, between price slashing and incentives given for home purchases and the lower level of sales, Lennar has said its gross profit margins will continue a trend to be 'materially lower' according to the WSJ article.
This, combined with Lennar's removal of the Madison properties from sale indicates that NL&F sees a less than rosy picture for SCV housing, at least in the immediate future. The Madison is an apartment to condo conversion development in the Town Center area, across the street from the Westfield Mall area.
The WSJ article stands in stark contrast to the Signal's puff piece on what Lennar's sale of the majority of its holdings in Newhall Land. But what else can you expect from the Signal? It remains the mouthpiece of Santa Clarita's major land developer.
While this author remains generally upbeat about the stability of the housing market, at least locally, the difference in tone between the WSJ and the Signal articles shows that you the reader would be well advised to continue to read The Real Blog, where we are committed to giving you information about what is really happening in the housing market.
'Normal Market' Projected for California for 2007
California builders expect return to 'normal market' in '07
Forecast calls for 'soft to stable' home prices
Friday, January 05, 2007
Inman News
The chief economist for the California Building Industry Association trade group expects housing starts for single-family homes, condominiums and apartments to range from 155,000-170,000 units this year, which could be about the same or slightly lower than in 2006, the group announced this week.
Single-family housing starts in 2007 should range from 110,000-120,000 units, Nevin also stated, compared with about 110,000 single-family housing starts in 2006, and multifamily construction starts are expected to range from 45,000-55,000 units, compared with 58,000 in 2006.
"Keep this year's forecast in perspective -- we are returning to a normal market," Nevin stated. "Producing 155,000 to 170,000 units will be more than any year from 1991 to 2001 and could exceed production levels from 1990 and 2002 as well."
Nevin said he expects production to be especially low in first-quarter 2007 as builders finish selling excess inventory, and he expects construction to pick up later in the year. "We need to be building about 240,000 new homes, condos and apartments a year to meet the need for housing," he stated, adding that fees and constraints on housing make it "all but impossible to meet the need in the entry-level market."
Housing prices will remain soft to stable in most markets, according to Nevin's forecast.
"We are already seeing signs of price stabilization as builders in some markets have sold most of their standing inventory. We expect that trend to accelerate after the first quarter. Because there's still excess inventory, there are still significant concessions, which we expect will drop considerably later in the year," he stated.
The forecast states that job gains have been slower than normal for the past few months on a national basis. "It is highly likely that because of the housing slowdown, employment gains in 2007 will not be as strong as they have been over the past few years. Typically, 200,000 new payroll jobs are seen as a bellwether for the U.S. economy. The past few months, monthly job gains have been closer to 100,000 than 200,000," the forecast report states, with unemployment rates expected to climb from 4.4 percent to 4.8 percent.
Nationally, the forecast calls for total U.S. housing permits in 2007 to reach 1.8 million to 1.9 million, compared with 2.16 million in 2005 and 2.05 million in 2004. Existing-home sales, meanwhile, are expected to reach 6 million in 2007, compared with 6.1 million sales in 2006.
Home prices on a national market "will be flat, at best," the report states. "In some markets, there may be net declines on the order of 5 percent to 10 percent from 2005 highs, but those markets are few," according to the forecast.
In California, the forecast calls for a gain of 180,000 to 210,000 total jobs in 2007, which is on pace to match 2006 and about half that of 2005.
Construction costs "appear to be at a standstill" for wood-frame construction, the forecast report states. Home-building costs and land prices are expected to fall in most metro areas of the state in 2007, with "accelerated opportunities for smaller builders to obtain land at prices that are almost palatable, both in suburban and urban areas."
Forecast calls for 'soft to stable' home prices
Friday, January 05, 2007
Inman News
The chief economist for the California Building Industry Association trade group expects housing starts for single-family homes, condominiums and apartments to range from 155,000-170,000 units this year, which could be about the same or slightly lower than in 2006, the group announced this week.
Single-family housing starts in 2007 should range from 110,000-120,000 units, Nevin also stated, compared with about 110,000 single-family housing starts in 2006, and multifamily construction starts are expected to range from 45,000-55,000 units, compared with 58,000 in 2006.
"Keep this year's forecast in perspective -- we are returning to a normal market," Nevin stated. "Producing 155,000 to 170,000 units will be more than any year from 1991 to 2001 and could exceed production levels from 1990 and 2002 as well."
Nevin said he expects production to be especially low in first-quarter 2007 as builders finish selling excess inventory, and he expects construction to pick up later in the year. "We need to be building about 240,000 new homes, condos and apartments a year to meet the need for housing," he stated, adding that fees and constraints on housing make it "all but impossible to meet the need in the entry-level market."
Housing prices will remain soft to stable in most markets, according to Nevin's forecast.
"We are already seeing signs of price stabilization as builders in some markets have sold most of their standing inventory. We expect that trend to accelerate after the first quarter. Because there's still excess inventory, there are still significant concessions, which we expect will drop considerably later in the year," he stated.
The forecast states that job gains have been slower than normal for the past few months on a national basis. "It is highly likely that because of the housing slowdown, employment gains in 2007 will not be as strong as they have been over the past few years. Typically, 200,000 new payroll jobs are seen as a bellwether for the U.S. economy. The past few months, monthly job gains have been closer to 100,000 than 200,000," the forecast report states, with unemployment rates expected to climb from 4.4 percent to 4.8 percent.
Nationally, the forecast calls for total U.S. housing permits in 2007 to reach 1.8 million to 1.9 million, compared with 2.16 million in 2005 and 2.05 million in 2004. Existing-home sales, meanwhile, are expected to reach 6 million in 2007, compared with 6.1 million sales in 2006.
Home prices on a national market "will be flat, at best," the report states. "In some markets, there may be net declines on the order of 5 percent to 10 percent from 2005 highs, but those markets are few," according to the forecast.
In California, the forecast calls for a gain of 180,000 to 210,000 total jobs in 2007, which is on pace to match 2006 and about half that of 2005.
Construction costs "appear to be at a standstill" for wood-frame construction, the forecast report states. Home-building costs and land prices are expected to fall in most metro areas of the state in 2007, with "accelerated opportunities for smaller builders to obtain land at prices that are almost palatable, both in suburban and urban areas."
Tuesday, January 02, 2007
Is Rental Capital Gain Tax 15 Percent or 40 Percent?
Is Rental Capital Gain Tax 15 Percent or 40 Percent?
by Bob BrussExcerpted from Inman News
If you own your rental property at least 365 days, you qualify for the federal long-term capital gain tax rate, which is a maximum of 15 percent.
However, a portion of your capital gain that is due to the depreciation you have deducted will be "recaptured" (that means taxed) at the special federal depreciation recapture tax rate of 25 percent (instead of 15 percent tax on the balance of your capital gain).
In addition, don't forget the state tax, unless the property is located in one of the lucky states without income tax. For full details, please consult your tax adviser.
by Bob BrussExcerpted from Inman News
If you own your rental property at least 365 days, you qualify for the federal long-term capital gain tax rate, which is a maximum of 15 percent.
However, a portion of your capital gain that is due to the depreciation you have deducted will be "recaptured" (that means taxed) at the special federal depreciation recapture tax rate of 25 percent (instead of 15 percent tax on the balance of your capital gain).
In addition, don't forget the state tax, unless the property is located in one of the lucky states without income tax. For full details, please consult your tax adviser.
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