Arlington County are helping affordable housing residents save more money on energy bills and also reducing their green house gas emissions. Last week the county donated 1,000 Compact fluorescent light bulbs (CFLs) to the residents of affordable housing.  According to the energy star if every American home replaced just one light bulb with an ENERGY STAR qualified bulb, we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.

In the long-term this generous donation will not only help residents save money on electricity cost, which is on average about $30 over a bulbs lifetime, but it will also help educate them on the importance of being environmentally focused.

Arlington County won the Compact fluorescent light bulbs (CFLs) as a prize in the 2007 Change a Light Campaign. This campaign challenged local residents and businesses to pledge to replace a traditional bulb for a CFL bulb; Arlington County obtained the most pledges.

We know that residents in Arlington County are very environmentally focused, but if you have not already made the change to CFLs, why not make the change this weekend.

We hear that times are bad for real estate and developer, especially with the current economic problems.  But a recent news story on WRC-TV, News Channel 4 about Turnberry Towers in Arlington VA could suggest otherwise.  Turnberry Towers in Arlington VA is a 26 story luxurious condominium building.  This building is the height of sophistication, with every detail thought out from meticulous craftsmanship, floor to ceiling glass in every residence and direct entry elevators.  The Turnberry Tower in Arlington VA has been described as “Mansions in the Sky”!!

Of course all of this comes with at a price, these Arlington Condos start at 800’000 up to 7 million.  One can’t help but think that during these turbulent times will these units actual sell.  Well, representatives from the Arlington Turnberry Towers state that from the 244 residences 50% of them have contracts, and these contracts require 30% down.  They also stated that there had been increased interest in the last couple of weeks from locals in Virginia, Maryland and DC.  Who’s main inquiries where focused in the 2-3 million-price range.

Who said we were in or near to a recession.   Once again more research to suggest that maybe Arlington, Virginia is the place to live during economic turmoil.

I was wondering whether recycling should be made mandatory.  Although, many fellow Americans recycle their waste, there are many people who do not.  There are so many benefits of recycling, for example recycling saves money, when new products are made from recycled products it takes less energy than if the product was made from virgin material.  Recycling also saves natural resources, for example when we recycle a newspaper then we don’t need another tree to further produce that paper product.  Plus there is the economic benefit associated with recycling, the whole process creates employment opportunities and contributes to economic development.

In many European Countries and the United Kingdom recycling is a way of life, different containers for a variety of waste products that can be recycled.  They take it pretty seriously, and in some of these countries not recycling can result in a nasty fine.  The waste collection agencies conduct regular checks of the non-recyclable garbage can, and the discovery of recyclable items will result in a fine.

This raises the question whether the enforced recycling in Europe/UK goes too far and whether recycling should be the personal choice like that that currently exists here in the US?

Here at Arbour Realty the recent bailout/recue plan has some exciting news for the environmentally friendly nature of our company. Our EcoBrokers are always looking for new ways to advise clients on the benefits of buying or renovating their home with energy conservation in mind.  Now the following incentives for solar, wind and geothermal just gives one more financial advantage to reducing ones carbon footprint:

• An eight-year extension of the investment tax credit (ITC) for solar energy.

• A multi-year extension of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, waves and tides, landfill gas and solid waste (through September 30, 2011).

• A one-year extension of the PTC for energy derived from wind.

• Incentives for carbon capture and sequestration demonstration projects.

• Incentives for the production of domestically-produced renewable fuels, such as biodiesel and renewable diesel, and for the installation of E-85 pumps for consumers to fill up flex-fuel vehicles.

• Tax credits of $3,000 or more toward the purchase of fuel-efficient, plug-in hybrid vehicles.

• Incentives for energy conservation in commercial buildings, residential structures and energy-efficient appliances.

In recent blogs we have talked about the benefits of Solar Power and how it is becoming more affordable, this new legislation is particularly favorable to Solar Power. Homeowners who install a new system can now claim a 30 percent federal tax credit, which brings the initial installation costs down considerable.

Click here for more information on the bill, and when embarking on your next home search consider working with an EcoBroker to get the best advice on energy conservation, which will in the long run save you financially and environmentally.

Finding good customer service these days can be a difficult process, and mixing that with the cumbersome issues associated with home loans, can turn the whole process into a horrific experience.  Thankfully SunTrust Bank may be able to make life just a little sweeter.

A recent article in the Winston-Salem Journal (NC) (10/21/08) states that Home-loan customers experienced more satisfaction with SunTrust Banks Inc. than any other mortgage originator this year, according to the results of an annual J.D. Power and Associates survey. The Atlanta-based lender earned a score of 790 out of 1,000, placing it ahead of No. 2-ranked National City Corp., No. 3-rankedWachovia Corp., No. 4-ranked Wells & Fargo Co. and No. 5-ranked Bank of America.

Despite a downturn in the housing market and turmoil in the mortgage business, customer satisfaction with the application and approval process, the loan professional, the settlement process and problem resolution was generally higher among the 10 firms monitored. The industry average score was 757 for 2008, up from 750 in the 2007 survey.

Arlington seems to have it all, recently named as having one of the best streets in the US, sited as being an area that maybe recession proof, and now it has been named as the top wealth center in the nation.  A recent article in The Arlingtonian stated that due to it’s highly educated population, which in turn gains them access to higher paying jobs is primarily responsible for the area being named top wealth center.

There are many benefits to the region of being named top wealth center, most importantly that this educated population helps drive  & will continue to drive Arlington’s economic success.  It also brings better businesses to the area, as the locals want better dining, recreational & other services.  Arlington also attracts start-up companies and companies considering relocating to the area as they see more financial stability.

Thinking of moving, starting a small business or expanding your existing business, then think Arlington!

There are many great reasons to live in Arlington; it has a great transit system, which in turn helps reduce our Carbon Footprint and fuel bills, great entertainment options, and lovely neighborhoods to name just a few.  Now there is another positive reason.

According to a recent study in BusinessWeek, Arlington, VA was named as the top place to live during a period of recession. The article states that due to Arlington having a highly educated community, many residents being employed as government employees, and the government also keeping lawyers, lobbyists, accountants and journalists busy, that Arlington would have fewer issues, which are normally associated with recession.

Therefore, if you don’t already live in the Arlington VA, now maybe the time to look into Arlington’s Real Estate.

Arbour Realty, Northern Virginia’s first green real estate company has taken even further steps to reduce their carbon footprint.  With immediate effect Arbour Realty has discontinued all direct mail.  All current and future recipients of the Arbour Realty newsletter will be receiving it in electronic format, as will the recipients of all marketing campaigns.

Arbour Realty already use 100% paperless real estate contracts, plants a tree for every home-buyer and seller to offsetting the adverse affects of this driving, use recycled paper printed with soy ink, and uses Richlite (a renewable & recyclable resource) for their yard signs.  Arbour Realty also encourages potential buyers to visit the on-line virtual tour of their listed properties before making an unnecessary car journey to view an unsuitable home.

Arbour Realty realize the importance of being a green business, and hopes that their efforts will set an example to other real estate company’s in Arlington, Virginia and surrounding areas.

Have you ever looked at a very rare coin (say a penny) that could be purchased for $2,000 and thought – that’s only worth once cent?!    It’s funny how the overall scarcity or surplus of a given item can “trump” it’s actual worth or value.

Ok, great, you may be saying  … what does the above have to do with why interest rates are higher than one would expect or desire them to be, especially when the economy is extremely weak (meaning rates should be lower)?

The answer is that the above example is actually a less-than-perfect way to describe what is happening with interest rates today  – scarcity is trumping value.

Let me explain …

Given the events of last week, rates should have decreased.    The Fed made a huge rate cut.   The economy is weak.    The government has taken many extraordinary actions to secure the credit markets.   All of these should have equaled lower mortgage interest rates.

However …

People (both individuals and investing institutions) are frankly scared with all that is going on in the economy today.   Collectively, many are taking money out of the market and holding onto cash.   Metaphorically, we are burying money in a mayonnaise jar in the back yard instead of investing in stocks, bonds or even putting it in a money market fund.

The result of people being very conservative is that we are not investing in things like mortgage backed securities.   Since few dollars are being invested into the mortgage backed securities, there is less money available for mortgage loans over the past few weeks – creating a scarcity of money to lend.    Since the demand for mortgages is greater than the supply of money, rates have gone up.

Said differently, given the events of last week, money should be less expensive to borrow, but since money to borrow is scarce, it is actually more expensive to borrow this week because of that scarcity.

Ok, so what’s next?

Let’s go back to the very rare penny worth $2,000.   Suppose someone discovered a chest containing an enormous quantity of these pennies.   Since the penny was no longer scarce, the market price would fall and begin to represent its true value.   A penny that is not rare or scarce is just a penny.

The same may happen to interest rates over the next few weeks – namely, if investors become more confident and begin to invest again (making more money available for mortgages), the money “drought” would go away.   If money is no longer extremely scarce, rates would fall closer to where you would have expected them to have fallen as a result of last week’s rate cuts.

Hence, if you are in the market to refinance:  (a) today is not the best time to lock in a rate, because rates are quite high due to the scarcity of funds to borrow, but (b) it is wise to keep in touch with your lender and prepare for a refinance, as rates may come down quickly if the money drought starts to ease up.

This blog was brought to us courtesy of our trusted lender, Paul Nagel of SunTrust Mortgage.  If you have questions or need information, feel free to contact me at  pnagel2 at cox.net or 703.201.5147.

Arlington County is now helping us go greener when we buy or build, by introducing the Arlington’s Green Home Choice Program.  This program is an incentive for homebuilders to build green. Builders who participate in the program are offered front-of-the-line plan review, lawn signs indicating participation in the program, attendance at County-sponsored seminars, and recognition as “green” builders.

The advantages to us as the buyer are not only the environmental factor but also the cost saving benefits.  Building or buying a home that has been designed with the environment in mind can not only save money on utility bills but also reduce exposure to potential allergens and toxins.

A great example of building green is the following case study home in Arlington, VA that increased it’s living space by 50% but decreased it’s energy consumption by 40%.  This home features BioBased foam, which holds its insulating properties in extreme weather conditions and does not break down over time. They increased the R-value (a measure of insulation) of the interior walls by adding a batt insulation product made from cotton textile scraps.  Windows were replaced with energy-efficient, low emissivity (low-E) ENERGY STAR qualified windows that feature gas-insulated panes and special coatings to cut down on undesirable energy losses and gains. Additionally, Solar power panels creates enough energy to heat about 80% of the hot water needed, and all appliances and light fitting are Energy Star qualified products.

The following provides more evidence that spending a little more during the build will be beneficially financially, environmentally and health-wise in the long run.  Clicik the following link to read more on the Arlington Virginia Environmental Services CASE STUDY.