What's the Most Expensive City in the World?
Moscow is the most expensive city in the world, according to this year's annual Mercer Human Resource Consulting survey. London comes in second place, up from third last year.

Overall, Asian cities dominated the top 10 of pricey cities. On the other hand, Asuncion, the capital of Paraguay, is the least expensive city for the fifth year in a row.

Mercer surveyed the cost of living in 143 cities, comparing the cost of more than 200 household items.

Strong currencies dropped New York City to 15th place and Los Angeles to 42nd. No Canadian or Latin American cities were in the top 50.

Top 15 Most Expensive Cities in the World

Moscow, Russia
London, United kingdom
Seoul, South Korea
Tokyo, Japan
Hong Kong, Hong Kong
Copenhagen, Denmark
Geneva, Switzerland
Osaka, Japan
Zurich, Switzerland
Oslo, Norway
Milan, Italy
St. Petersburg, Russia
Paris, France
Singapore, Singapore
New York City, U.S.

— REALTOR® Magazine Online

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Call for Action: Improve City Living
More than 83 percent of the American population lives in metropolitan areas, as cities enjoy renewal fueled by mixed-use downtowns, pedestrian-friendly neighborhoods, healthier rivers and lakes, and the renovation of historic buildings and other distinctive architecture.

But metropolitan areas aren’t without problems. Bruce Katz, vice president of the Brookings Institute and founding director of the Metropolitan Policy Program, urges an election-year focus on developing a blueprint for improving the areas where so many people live.

He points to these three issues as most in need of attention:

Affordable housing. “Low-income housing is built overwhelmingly in poor, inner-city neighborhoods, and we wonder why these places remain intractably mired in poverty?" he says. "Meanwhile, many of the entry-level jobs that serve as a ladder to the middle class have moved to the suburbs.”
Education. Katz stresses the need for federal and state commitments to improve access to quality education at all levels.
Energy efficiency. He also called for a need of strategic federal and state investments in science and technology, advanced research, and innovation.

Source: The Washington Post, Bruce Katz (07/23/07)



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New State Programs Help Home Owners Avoid Foreclosure
Six states are trying to reduce the number of home-mortgage foreclosures by setting up funds that help home owners with subprime mortgages refinance into more affordable ones.

Maryland, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania are investing $500 million in programs that are either supported by bonds or are offered in conjunction with Fannie Mae and Freddie Mac.

About 2.3 percent of the nation’s 44 million home loans are expected to move into foreclosure this year. Freddie Mac says 60 percent of these home loans are subprime. The projected foreclosure rate is higher than during the oil bust of 1987, but not as high as in the 2002 recession.

The success of these programs hinges on the cooperation of mortgage lenders, says Kevin Cuff, executive director of the Massachusetts Mortgage Bankers Association. He expressed doubt about the states taking over the role of mortgage lender.

"Nobody wins in foreclosure," he says. "But it's doubtful mortgage lenders are going to agree to both take a hit and lose a consumer."

Source: The Wall Street Journal, Thaddeus Herrick (07/23/07)

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Fall Is Great Time to Rent Vacation Homes
A vacation property construction boom over the past few years has boosted the overall number of vacation homes, while falling home values have made renting out a home for extra cash a more appealing option.

The result is a glut of places to spend a vacation.

One expert is urging home owners with the urge to rent out their properties to consider off-season business.

"The second and third weeks of September and the third and fourth weeks of October are going to be great weeks … in Florida, Georgia, Myrtle Beach and Hilton Head, N.C., the Tennessee mountains, Branson, Mo., and the Ozarks," says Christine Karpinski, author of How to Rent Vacation Properties by Owner.

Karpinski has this advice for home owners considering the rental game:

Post lots of photos and information on your Web page. Make sure the information you provide is complete and accurate, and don't exaggerate. That will help avoid disappointment from renters who expect more than there is. "I, as a consumer, would not rent a place without seeing photos of each bedroom and the living room," she says.
Replace the furniture often. The normal wear and tear on upholstery and linens can prove a turn-off for vacationers. They're much more satisfied when everything is more crisp and new.
Hire a caretaker. You need "feet-on-the-ground" if there's distance between you and your rental property. That way, if there's a problem - the heat goes off, the oven won't light - there's someone who can offer quick problem solving.

Source: BusinessWeek Online, Maya Roney (07/18/07)

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