However, some unforseen outcomes of public policy are very real and very damaging. Consider, for example the covert funding of the Afghan Mujahideen by the CIA, which eventually contributed to the rise of Al-Qaeda and the terrorist activities of that organisation.

The Canterbury Earthquake Recovery Authority (CERA) has a predilection for colours – first we had four – red, green, white and orange zones.  Since Friday October 28th we have 3 more (hitherto unknown shades of green) – grey, yellow and blue – Technical Categories 1, 2 & 3. By introducing these new zones with little specific information on requirements for TC2 & 3 in particular, a new layer of uncertainty and complexity has been added to the real estate market. Further, insurance companies in Christchurch are imposing various policies and diktats on their clients which are distorting an already distorted market in (I assume) unintended ways, to the detriment of many other buyers and sellers. An example that we are becoming aware of is that of at least one company, when funding the purchase of a replacement home for their client,  specifying that those clients may only buy a home in the Technical Category 1 Green zones (grey). Clearly that policy will adjust prices of TC1 homes relative to TC2 and TC3, without any specific justification. What if a home in the TC2 or 3 zone has been built to the requirements and has no damage – why should the buyer not be able to proceed if they wish? Clearly the insurer has the right to set out terms if insuring the property, but if the buyer takes over the insurance of the vendor and it is a different company, then I question the right of the buyer’s insurer to dictate where they can buy a home at all.

We are hearing also of buyers spending their insurer’s money on a new house and then immediately on selling to obtain the cash. Presumably the insurer is offering such a large discount on the cash settlement alternative to make this an economically viable and wholly rational exercise for the buyer. Possibly it is the only way that people can end up in a house in the area they want to live in. It seems to be a nonsense that people feel that this is the best path to take – what justification can there be for an insurance company to have such a difference between what they will allow a client to buy and what they would pay them in cash? Answers on a postcard please…

Another colleague has reported a client of theirs was unable to get a lender to advance the money on a property in TC3 (blue) zone. If that becomes standard policy, then TC3 becomes, in effect, a red zone – without the Government offer to buy the property.  I do not know how this will resolve itself, much of our experience in real estate over that last 14 months or so has been learning ‘on the job’ and on a case by case basis. However, I suspect the time is fast approaching when New Zealanders will have to accept that it is no longer possible to get insurance for Earthquake related damage, or that the Government will have to provide that cover – either through a state-owned entity specifically writing that insurance and operating as a business, or through a revamped EQC. Funnily enough this does not seem to be a big election issue!

First I shall explain – discombobulation is a feeling of embarrassment that leaves you feeling confused. Embarrassment can be caused by many things – such as the behaviour and performance of the England Rugby team – I have seen better from 5th form rugby tours! There is the embarrassment I feel at having neglected this blog for so long, there is the embarrassment caused by the silence that befalls the room as you finish your best joke… but these are not the source of my feelings.

A certain Mr Roger Wade from the UK made headlines in The Christchurch Press this week. Apparently, the soon to re-open, City Mall, consisting of Ballantynes and some shipping containers converted into retail space is upsetting him. Apparently his Boxpark ‘pop-up mall’ development in Shoreditch, London was the inspiration and deserves recognition – having not got this, he is taking legal action.

I am feeling a sense of deep embarrassment – I am from London, England – and (usually) very proud of  it. My roots are in the East End – I follow West Ham from afar! (used to go to Upton Park every game.) I am sure that the Boxpark project is a great idea and the East End of London deserves the revitalisation it is undergoing, largely driven by the olympics next year. But I live here in Christchurch, have done for 13 years now – and love it (perhaps I could do without the earthquakes!) and I now have NZ Citizenship, and it is ‘home.’

What is this man hoping to achieve? I heard him on the radio and he said it was not for ‘financial gain.’ So what? I know we do not have sole ownership of the moral high ground due to the earthquakes we have suffered – just look at Turkey, Japan et al – mother nature does not discriminate, but I struggle to see what he can hope to achieve. The people of Christchurch have endured a significant natural disaster – large parts of the City have been destroyed. The City Mall reopening is an attempt to show that the City is rebuilding – amid the continued demolition and aftershocks.

Good on the people behind this – and shame on the knockers. Mr Wade may have right on his side in a purely legal sense I do not know, but, in my opinion, he has no right to pontificate, unless he has ever gone through something similar to us.

A bigger man, would have written an open letter to The Press – congratulated those involved and told us all how pleased / proud he was to have provided the inspiration. The City’s response may well have been to invite him here, show him round and discuss further joint ventures. I doubt that will be the case now.

I suspect that all of us here, who have lived through September, February and June have changed. I know I have – I understand that my time here is limited, I am thankful I am alive and my family survived unscathed. I can empathise with those elsewhere in the World who have to go through similar, often far worse disasters. Mr Wade – my message to you – “don’t sweat the small stuff mate!” Remember the words of the recently departed Steve Jobs “Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose.”

Normal service, regarding interesting and informative real estate articles to resume next week!

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” – Winston Churchill

It would be easy to fall into the trap of believing that Christchurch post the Feb 22nd EQ is hopeless place to be involved in the real estate industry. According to the REINZ the number of transactions in Canterbury in April was 626, compared with April 2010 when there were 742, and April 2007 (the height of the boom ) 1,174.  All pretty gloomy stuff. But there is always another perspective – take yourself back to the days immediately after that EQ – TV reports showing the harrowing pictures of collapsed buildings, desperate rescue efforts, and the only number people followed was the growing fatality list. If it had been suggested back then, that  in the 2 months immediately following there would have been over 1000 sales, I suspect no-one would have believed it. Alternatively, consider the situation of the Japanese after the terrible EQ and tsunami in March – Christchurch is relatively unscathed in comparison to the entire towns wiped from the map – and that is not to forget the loss of so many lives.

Human beings have a remarkable ability to reinvent themselves, and recover from terrible adversity. We need to stop being confined by the old way of doing things – they may work, but that is not to say new ways may not be better and more suitable. The Christchurch CBD will be rebuilt, thousands will move into new houses – what the CBD looks like or where those houses are is not known – but it will happen. This is a journey – the destination is known, how we actually get there may not be immediately apparent, but get there we will. So we need to focus on the end result – eventually the way will become clear.

Similar thinking can be applied to almost everything. Children’s education is a great example – look at the schools that are sharing sites – it is a remarkable solution to the problem when all the logistics are taken into account. yet, in many other countries it is a standard solution to very crowded city life. I frequently hear or read parents complaining their children will be disadvantaged in upcoming exams. That is possible, but after the fact, employers will know and have gone through the same disaster. A candidate who can turn this to their advantage, talk of life skills this experience has taught them, is likely to stand a better chance of employment than one who can simply point to the marks they achieved at NCEA!

The property market – it would be easy to be the “rabbit in the headlights” – everything is just too hard, too damaged, taking too long! However, selling houses with EQC claims is commonplace, as are lengthy due diligence periods while all sorts of checks are carried out by prospective purchasers – given the extraordinary forces nature has unleashed it is quite understandable that people want as much reassurance as possible when looking to buy a house. As real estate professionals it is our job to help guide clients through the process – not be scared by it!

Those of us that are still working have an extraordinary opportunity – what we learn through this period of time will be invaluable – both personally and professionally. It is a cliché but “when the going gets tough, the tough get going!” To my mind, everyone in Christchurch who intends to stay and be part of the future, owes it to support the people with vision or come up with visions of their own – we may not agree, but if you have an opinion – voice it – otherwise you cannot complain about the outcome. In our day-to-day lives we must look for solutions, look to support those who have ideas – even if they are unusual – for most of us this is not a ‘normal’ situation, so we must adapt.

And finally, I look at the appointment of Roger Sutton to be head of CERA – he appears to be a man who looks for solutions to problems – his work in the immediate aftermath of Feb 22 for Orion was outstanding – he is just the sort of person Christchurch needs. The future is bright, if we choose to look towards it, rather than hide in the shadows of broken buildings.
“Begin challenging your own assumptions.  Your assumptions are your windows on the world.  Scrub them off every once in a while, or the light won’t come in.” Alan Alda, multi Emmy Award winner & star of M*A*S*H who overcame Polio as a child.

The Canterbury market has been awash with commentators predicting what will happen to the real estate market since the February 22^nd earthquake.  Following the first full month since the earthquake we thought that facts should be shared to reflect the reality as rumor can be misleading.  As a group Harcourts is responsible for more than half of all real estate transactions that take place in the region, for that reason we feel it appropriate to provide early reporting of the situation to keep the marketplace informed.  The following are the Harcourts Group figures for the month against a comparison for the same period last year.  We have also sought comment from people on the ground involved in the day to day business of transacting property in order to gather a feel for the current situation and the future.

There is no doubt that directly following the 22^nd of February real estate was not a top priority for people in the Christchurch region including many of the Harcourts team who sustained significant damage to their homes and workplaces and lost loved ones in the earthquake.  Our thoughts and support continue to go out to people in the region that are enduring ongoing hardship and dealing with losses.  To support Canterbury, Harcourts network has raised tens of thousands of dollars for the Red Cross and also locally been involved in working closely with support groups on the ground throughout the disaster.  The efforts of the Harcourts network globally, nationally and locally will continue indefinitely to ensure that once the headlines are not focused on Christchurch, we will be.

What has become apparent very quickly following the earthquake is that Christchurch people are committed to rebuilding a city that is better than before, they see the future full of opportunity and in the main want to be part of it.  Following the initial reports of masses leaving the area in search of futures elsewhere we are seeing evidence of people sorting out their living, working and schooling situations to reflect a feeling of “post earthquake normality”.  We are not suggesting that things are “pre earthquake normal” people are just adjusting to the “new normal”.

As part of this process we have seen a real estate market that has defied even the the most optimistic of market commentators and in spite of difficulties faced around insurance and finance, transactions have been happening. Both written and settled sales have been positive.

Roger Dawson and Phil McGoldrick, two of Harcourts Auctioneers in the region have reported strong activity in the auction rooms with buyer demand for undamaged homes outweighing the availability. This has resulted in some properties achieving strong premiums.  Throughout March both men conducted 54 auctions and have sold a staggering 28 properties under the hammer with many others being negotiated post auction. These results even surpass the pre- earthquake auction success rates.

The interest in open homes has also been strong with the following comments made by Harcourts Canterbury Business Development Manager, Jim Davis. “From what I have seen even with the wet weather over the weekend there were people out looking at the open homes and in virtually all cases they are genuine buyers, who are looking to get themselves sorted”.

Listing activity has been positive with new homes coming to the market daily, certainly down on the same time last year but up on all predictions directly post the earthquake.  Concern is growing about the level of new property to the market. It may not be sufficient to meet the current levels of demand and thus prices may continue to have upward pressure due to competition between prospective purchasers.  Results and prices achieved in some auctions have indicated that in some areas premiums are being obtained.

March Results – Christchurch

We understand that looking at Christchurch as one market place is difficult as there are areas that have been significantly affected and it will be frustrating and prolonged road to recovery.  The figures above do give a snapshot of the Christchurch marketplace with some positive signs emerging. In spite of the day to day difficulties Cantabrians are facing, they are a resilient and proud group of people that are going to rebuild a life and a city that only a month ago looked very difficult to imagine.

My letter, as published, asked why none of our civic leaders has thought to discuss any “big ideas” for the rebuilding of Christchurch, such as an equivalent to the “Gherkin” in London or the Sydney Opera House?

What I actually wrote was as follows…

It appears that the road to recovery in Christchurch is not smooth. I understand that there are many issues that need to be addressed, not the least of which is dealing with many individual cases of hardship.

I am not in a position to say whether there are unnecessary delays in this process, but I can understand why many people think there are.

I am, however, somewhat dismayed by the lack of “big ideas” being put forward, when what we have is a “once in a lifetime” (we hope) chance to rebuild this city. We are forever hearing of plans to rejuvenate the inner city – most of which propose increased residential building. But I have yet to hear of any coherent plan suggesting why anyone would want to live in the inner city – just because you build the houses will not create the demand for them.

If we were to rebuild the city in a way in which people would want to come and visit, relax and work then surely the demand for residential homes would follow.

I wonder if anyone has thought of building an iconic, possibly controversial, building that could become the focal point for all of this. Look around the world – the Gherkin in London, the Guggenheim in Bilbao, Sydney Opera House, the Empire State – these are buildings that define their cities – possibly even their countries, and there are many other examples.

Imagine Christchurch dominated by something outstanding, world class – with a mix of retail, commercial and residential uses. With vision and the right people driving this, it could become a way to showcase everything that is good in Christchurch (and New Zealand) – architecture, structural engineering, technology. It maybe heresy to suggest this, but Christchurch could be redefined, no longer the Garden City, but something modern, outstanding and of which we could all be proud.

Tourists coming to New Zealand should see Christchurch as a “must see” destination – not a stop over on the way to Queenstown or wherever, and right now we have an opportunity to make that happen, or are we to let it slip through our fingers?

I understand that the major priority has to be helping those people who have suffered significant damage to their property. I am sure that there are very many people trying to do just that – but their efforts are being lost in a vacuum, where there should be information. Our mayor did a fantastic job in the immediate aftermath of the earthquake, but the lack of a coherent message gives the impression of a lack of leadership and vision. The point of my letter was to provoke our civic leaders into developing some vision for our city – one everyone can be connected with. At present it feels like we are in a leaky ship with so many headless chickens running round with sticking plasters looking for holes!

Now I have that off my chest, normal service will be resumed in the coming days.

have the courage to think for yourself

But over time general price inflation eroded those gains in nominal wages leaving few people better off in real terms. The global nature of trade and finance in today’s world means that ever increasing wages are a thing of the past, and so too is general price inflation. Asset price inflation now serves the same purpose as the old wage inflation, and market crashes serve as the old general price inflation, to erode excess gains in wealth – except it can and does all happen much faster!

Stock markets going up by 30% or 40% a year makes investors feel wealthier – but when the markets crash that wealth is destroyed in minutes and with it goes our sense of well-being.

Another facet of human nature is that we take comfort from the belief that the future can be predicted as an extension of the past. A whole army of economists and market commentators make their living perpetuating that myth. The con that economic activity can be predicted with decimal point precision is something we would rather believe in than question.

The reality is that all these commentators are doing is rationalizing particular values or market movements as continuations of our immediate past, but they miss the seismic shifts in how economies or markets are driven. The 1980s and 1990’s saw incredible liberalization of financial markets – the big investment banks (particularly in the US) were in effect able to print vast sums of money (through various derivative instruments) which fuelled incredible asset price inflation in stocks, commodities and real estate. This has been unwound to a large degree in the last few years as banks have collapsed and so too many asset prices have fallen or stagnated.

New attempts at regulation and authorities printing money are attempts to “fix” the problem. How that eventually ends up is not my concern here, but I doubt anyone making any precise forecasts right now really knows. Look at the price of gold right now – this is rationalized as a natural response to higher inflation that is “inevitable” because so much money is being printed (by the US and UK in particular.) But how is this money going to cause general price inflation – the global economy is too competitive for any producer to set prices higher. It is gold as an asset class that is increasing in price, as this money chases a home – inflation fear is just the rationalization based on the mistaken belief that the world will do what it did in the past. Comparisons with the Great Depression of the 1930’s are spurious given the different global economic regime. And that does not include any sense of how the internet and global communications have changed things, in good, but unknowable ways.

What does all this have to do with real estate in Christchurch? First and foremost my firm belief is that we have to stop thinking in terms of a return to “normal.” We cannot undo the earthquake. It looks as though we are going to have to accept large aftershocks sporadically as the new “normal.” So getting structural engineers reports on property, doing your homework regarding whether or not insurance will be available – these are now things we just have to accept. They do not stop us from buying or selling – they just change the process.

Secondly we have to stop thinking in terms of the market returning to “normal” in terms of house prices going up 10 or 20% a year. For now they are tracking sideways. If you want to buy a house because you think it is going to make you money, then have a good think about why it should – I don’t necessarily agree or disagree but don’t trust an economist to tell you! By the time the papers are telling you all is well with property as a (speculative) investment, prices will have been rising for a good while. For now the commentators have a mindset that the market is in the doldrums and any evidence will be fitted into that framework. Suffice to say that I am working with a number of clients who think now is a great time to be buying land.

To quote George Soros, the man often referred to as the one who beat the Bank of England – “The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.”

Bottom line, it is Ok to buy and sell – people are doing it all the time – stop looking for external reasons to justify what you want to do, whether it is upsizing or downsizing or investing. Make your own judgments and have the courage of your convictions – don’t be a lemming.

I am not thinking that Christchurch needs to turn itself into New York or The Gold Coast with towering buildings, but I would like to see some “big thinking” in terms of how

we don't need big buildings, but we do need big thinking

Christchurch can move forward, rebuilding confidence in some suburbs and helping people put their shattered dreams of home ownership back together. We have all seen the pictures of streets devastated by the earthquake, but most of us are fortunate enough to have homes still standing. But spare a thought for those who have houses which are uninhabitable, or houses that have survived in streets that resemble war zones.

I have been thinking about how the council and the government might work together to restore confidence in these areas and help the people affected. It takes a bit of lateral thinking, and anyone wishing to discuss further or expand on my thoughts are welcome to comment, email or call.

So here goes…why doesn’t the Council buy up great swathes of land in the worst affected areas, then lease the land back to home owners? This means that the ownership structure for these people will change, but it need only be temporary and not at any disadvantage. Look at the very common ownership structure of homes in the UK – much of the land is owned by the crown, the C of E or the Duke of Westminster! Home owners actually own the buildings, but lease the land for nominal annual ground rents – for 100 years or more, with automatic rights of renewal.

What benefits would this have? First it would mean the council was responsible for fixing the land so that it can be built on. Second it would allow owners of destroyed homes to buy else where with their EQC payouts and the value they get for their land, otherwise they can rent temporarily and rebuild later. Moreover, the leased land should have provision for the owner to buy the lease back in the future, at predetermined levels (and inflation multipliers could be inserted) – but that is detail, and I only want to think ‘big’ here.

So where does the money come from? Answer – Central Government, and they recoup it through the issuance of Earthquake Recovery Bonds (ERBs)  which are redeemed in 25 or 30 years time and pay a fixed rate of interest. Again if one insists on micro-thinking a whole range of terms and rates – both fixed and floating – can be offered. The benefit of this would be to create safe investments for investors who want something different from a bank deposit and not as risky as finance company shares or debt. They would also be available to foreign investors without having to sell them the land itself! It also means that the cost can be spread over generations rather than be borne by current ratepayers – this is only fair as the plan will benefit future Cantabrians as well us those of us here and now.

What other plans are out there? Who has the guts to go out on a limb with ideas that last longer than the next electoral cycle? My idea may not be perfect – it could be impractical, but it is a thought – where are our civic leaders thinking Christchurch should go now?

So now is the new “normal”, and we all have to learn to live with it. I think there are many positives that are coming out of this event – and that is in no way trying to belittle the specific and horrific problems that many people are obviously having to cope with. But in general terms, I think  that every professional involved with the real estate market is learning that we have to work together. Lawyers and agents must talk through the various issues – for example if a LIM is unavailable, what other information is needed that can suffice. Agents must be involved right up to the settlement – helping buyers and sellers with insurance, structural reports etc – even if it is only using their network of contacts to get the right people on the job as soon as possible.
My own opinion is that there is also a degree to which the balance between buyers and sellers with regard to their own obligations is being redressed. That is sellers need to take responsibility for obtaining structural reports before going to market – even if a buyer wishes to get their own independent report, the fact that a seller has one to provide shows their willingness to behave responsibly in an uncertain market.

And finally, I think it is important for both buyers and sellers to find an agent to work with – someone they trust, who can help them. Selling a home privately is still an option, but now, more than ever I think it is wise to have professional help – and that means people who are coming across the issues on a daily basis and learning how to deal with them – rather than sweeping them under the carpet in the hope that they will just disappear. Similarly buyers can benefit from working with an agent – especially as at the moment there are a number of properties being sold without becoming publically available.

So the market is functioning – but in a post-earthquake reality rather than any sense that pre Sept 4th was normal and now is not – all we can do is live with the here and now and deal with what is, not what we would like it to be – but people are selling and people are buying and that is surely the definition of a market.

I am sure I speak for many people, but when I was rudely awakened on Saturday 4th Sept by the earthquake, I could not see how what was happening could be very good for me or my family. Indeed, if truth be told, it is a little difficult to see exactly how it is going to turn out to be the “best thing in the world” for me.

But from a personal point of view it is important to move forward – none of my family was hurt, my house has suffered little damage and life goes on…and so it is with real estate – the market will continue to function, matching buyers and sellers.

I do not mean to offend or belittle the individual hardship and loss that has undoubtedly been suffered by many, but I think when the dust settles there will be a number of benefits that emerge from this natural disaster.

Take the commercial real estate sector – it has been suffering from over-supply for many months – in a few violent seconds that supply has been removed. Agents who deal with commercial leasing are as busy as they have been for a long while.

Many people in the building industry had all but lost faith in an economic recovery – now they have more work than they can handle. Indeed some people I have spoken to are looking forward – thinking in terms of buying land to develop rental property for themselves or for on-sale.

In the short-term there are clearly some obstacles to a fully functional market – there are doubts about whether insurance cover can be obtained and therefore concerns about the availability of finance. Yet despite a lot of (mis)information there are plenty of people at work to find solutions and on a case by case basis most transactions have proceeded, though with a few ‘speed bumps’ on the way.

I remember back to my previous life in London – the chief economist of one bank I worked for always predicted boosts to growth after the initial shock of a  terrorist attack. I have read of the economic growth that  followed the earthquake in Napier. We hope the EQC will alleviate much of the financial pain, so Christchurch will get a financial boost, with the burden spread across all Kiwi insurance policy holders and taxpayers. It may not be immediate, but i think that history will show that this earthquake was the precursor to a reasonably prosperous time for Canterbury.

Regular readers will know I am not one for overblown hyperbole, and that my feelings about the future are genuine – not just the empty positive spin of a real estate agent talking the market up. The human memory is a strange beast – just consider childbirth – tho’ i have not been through it personally, I am aware of how painful and traumatic it is for some – yet we keep going back for more. The same with this earthquake – it already seems much more than 2 weeks ago – the aftershocks are becoming less frequent (tho’ still pretty big) – and soon for many people it will be “business as usual.” I think it will be a great opportunity for many, and the biggest winners will be those who are quickest to shake themselves out of the “who kicked me in the head?” mindset.

And finally, another positive note is the increased sense of community that I am witnessing – standing in freezing temperatures out on the street, in pitch black, aftershocks still rumbling, in pyjamas with your kids and neighbours thanking whatever god or higher power that you believe in that you and they are OK does wonders for the spirit!

In the Press this morning, the article on house prices in Christchurch said they were “4.6% HIGHER” than a year ago, “3% BELOW” the market peak and have “remained fairly STATIC…for the past six months.”

Have a look at pretty much any blog on the NZ property market and the ensuing comments and you will find those saying the market is crashing, and those that argue it is holding up fine – both with equal ferocity talking up their own positions and prejudices.

Then look at the recent decision of the Reserve Bank to raise interest rates by 25 basis points and the accompanying statement “The world economy continues its fragile recovery. Trading partner growth has turned out stronger than we predicted, however, future prospects for growth have deteriorated.” This paints a ‘confusing’ picture of strength and weakness.
So why did they decide to increase the Official Cash Rate?

I would guess the discussions went something like this…

Governor: “So what is our growth forecast?”
Economist: “Er, um, I think maybe up, or, um, possibly down, er…”
Governor: “Inflation forecast?”
Economist: “Well it will go up, and er, down, er maybe!”

And so the decision looks like… because we think the economy may be growing, but it might not be in future, we’ll put rates up now, so we can lower them later!

Would you like your Doctor to prescribe your medication like that – “Ok the medicine looks like it is working, but we are not sure, so we will stop it now, so that when you get sick again we can give you some more and looks like we are doing something!”

I just don’t get it. It seems to me that not long ago we were all being told that we were in the midst of the greatest financial meltdown since the Great Depression – so would it not be wisest to keep policy easy for a bit too long,  rather than apply the brakes too soon.

There is something absurd about trying to precisely model economies that are made up of people who can all change what they do, in different ways, at different times – we are not a set of mathematical equations! The economists and policy makers all forget that there are actual people that make up the employment statistics – not just numbers. Actual families are losing their homes – mortgagee sales involve people, not just banks and bits of paper.

But I digress…we live in a confusing world, and people will make mistakes at the best of times. Right now, your biggest mistake would be to believe anyone with a vested interest in talking the housing market up or down.

If you want to move house because your current arrangements don’t suit – then do it – if you are waiting for some clear message from the statistics, you will be where you are for a long time! Find a nice house you like and can afford and buy it! Want to fix your mortgage rate – do it if it makes sense to you. Don’t let the bank tell you it makes sense – remember the banks are there to make money – they would not be suggesting we do things that lose them money and they are always the other side of your transaction. At the end of the day, it is your life, your decision – think for yourself & make up your own mind!

It was, after all, Harry S. Truman (33rd president of the USA) who said “if you can’t convince ‘em, confuse ‘em!” Don’t let them confuse you – have the courage of your own convictions!