Overcapitalisation – Why Cost Does Not Equal Value?

If you are unaware of the real estate terminologies then you might be wondering what overcapitalisation is. Basically, overcapitalisation refers to an overspend on construction or renovation costs which means the actual cost of a construction/renovation of the property is superior to its real market value. Overcapitalisation is also considered as asset inflation. Confused? Let’s make it simple. For instance, Mr A is planning to renovate his house by remodeling the bathrooms, basement and kitchen; upgrading the living room and bedrooms; adding a porch and swimming pool; installing vinyl siding, fencing front entrance and extending the garden. Mr A decides to use upper end expensive quality materials in the renovation. While doing so, he forgot to consider the real market value and quality of the houses in this area, which was lower than the value of his upgraded house. This is overcapitalisation.

Now the next question is what should be done to avoid overcapitalisation? Simple! When renovators and home builders are planning for home improvements, they must keep in mind some factors which have greater impact on the overall value of the property. For instance, evaluating neighbour’s housing style, demographics of neighbourhood, streetscape, design trends of neighbouring property, and recent resale prices of the homes in the area.

Although generally improvements and renovations add value to a property, it will be wrong to say they will ALWAYS increase its value. The reason is that if renovations and improvements are overdone, without keeping in view the real value of the area where your property is located, you might be overcapitalising your property. This means that your property cost will not equal its market value.

Hence, it is rational that a renovator or home builder is aware of overcapitalisation, and increases the value of the property only to an extent that it can cope up with. Remember, you’ve got to be really careful about overcapitalisation when upgrading or renovating your property.

Often overcapilisation occurs when people are not rational and business minded in their approach. Typically home owners will spend more on fixtures and fittings with the aim to live in the property.

Some cultures often prefer to live in larger homes as status symbols and will opt to spend more on improvements than is the norm in the locaility.

However if you are an investor or builder, it is important to get the mix right as this will result in higher profit margins. Getting it wrong can often mean longer selling periods and discounted prices. Do your due diligence to avoid disappointment.

Building a Professional Career Online

The Internet has become one of the vital components of our daily lives. It is not hard to admit that most of our daily activities in life have been touched by the World Wide Web. With that, it is no surprise that a growing number of individuals are already exploring — some enjoying the benefits of having a professional career online, a lucrative and rewarding career right at the comfort of a coffee shop or in their home office in front of their computer.

Creating a professional career online is now possible, thanks to the convenience the internet provides. One can easily start a career in buying and selling stuff online or by simply creating a blog or engaging in freelance writing. There are many careers available online. Here are some of the following careers you can look into online.

Freelance writing

Blogging

Ghost Writing

E-Commerce

Programming

Website Design

Video Editing

Photography

Find a career that suits your set of skills best and then start creating your online portfolio to get clients and projects to start with. It is advisable to get a reliable internet access, one that runs at least 2MBPs or more to be able to attend to your daily activities on the internet. A lower speed may prove to be stressful when trying to meet and beat deadlines as well as when updating online templates and doing web design. Anything less also fails to meet requirement of clients and freelancing websites. Thus trusted home phone and internet bundles will help make your online freelancing career even more feasible.

Here are some of the tips you can follow to start and build a professional career online.

Create an online portfolio

Before finding clients and trying to land a job online, you need to create an online portfolio. It can be your Name.com or a blog under a free hosting platform like Weebly, Blogger, or WordPress to begin with. Include credentials, training, sample works, and a few details about yourself in this page. This can be a simple website with a few pages attached where potential clients can download and read samples of your work. A contact page is also essential.

Build your connections

You have most likely met a colleague who also happens to work online. You can include him as one of your references on your online portfolio. You can also add your past managers and supervisors as references. Be sure to inform your colleagues about them being one of your trusted references online. You can also include testimonials from past clients as well as their contact information to be able to provide your potential clients a reliable source of firsthand information about you and your performance as a professional online freelancer.

It is also important to keep in touch with your past clients from time to time to be aware of possible projects that may be available for you to do.

Update your social media accounts

Social media is also a big factor in building your career and connections online. LinkedIn, Facebook, and Twitter are just some of the social media sites you should have to be able to build credibility and your authenticity as a real individual working online. LinkedIn is a very good source of connections as well so you must really take advantage of the feature it offers. If you would want to keep your Facebook and Twitter feeds private, it would be advisable to have a separate Twitter account or a Facebook page for your business or brand. Past clients can post comments and testimonials in these social media pages as well.

Utilize marketing strategies

Take advantage of the free marketing strategies on the internet for your online business and online services. Post feeds on your social media accounts. Submit guest posts to increase your presence online, write press releases and publish them on free PR websites. Join forums and Q&A websites and the likes. The more you expose yourself and your brand online, the higher are the possibilities of getting clients and projects.

Advertise your business

As you see your business grow, you tend to meet competitors along the way. Advertise your business to create an edge over your competitors. Target your market well and utilize the right keywords to be able to make your business more visible and on top of search engines. This may take time but with the right strategies, you can practically be a preferred choice over similar professional services if you market your business well.

Home Improvements – Deck Building And Finishing

Deck Building

What to use when building a deck is always the question!

Decks can be built to be maintenance friendly or sweat equity not so friendly… Let’s deal with the first one “maintenance friendly”.

Consider using one of the composite products, they can be up to 70 % wood fibre and 30 % polymer plastic. Looks like wood, feels like wood, greys like wood in the sunshine; but requires no staining or painting and screws down using deck screws. Some are tongue and groove and allow water to drain through its unique drain-hole system. Sound interesting… You bet! Ask at your local building supply centre for further information.

Now for the 2nd, not so friendly; real wood. No, I am not anti-natural wood fibre, but it does have to be maintained every 2 to 4 years depending on exposure to the natural elements. If you insist on real wood, use Western Red Cedar or 5/4 X 4 Rocky Mountain treated pine applied to pressure treated joists.

For best results, use the Deckster galvanized strips to give a nail less face to the deck surface. Finish with a natural deck oil after preparing the surface with mill glaze remover.

Finishing

Wood drip through decks are the type normally built, if 2 X 4 or 2 X 6, or treated radiused edged decking, laying flat over a joist system allowing the water to drip through to the ground below. No matter what kind of lumber you use to build your deck, red or yellow cedar, pine, spruce, hemlock, redwood or fir, you must prepare the surface properly so that it will accept the deck finish. When lumber goes through the milling process, the knives polish the face leaving what is called mill glazing on the surface. This glazing prevents proper penetration of quality deck stain.

First scrub the deck with a mill glaze remover available at your local building supply store or paint store, or sand the face of the deck with 60 grit sandpaper.

Apply natural oil or semi transparent deck finishes for best results. Apply to all 4 sides and ends before nailing or screwing down.

NOTE: Make sure you select the best side to be up. When applying finish, use a stain brush and scrub into the wood with a polyester scrub pad. Second coat should be applied when the deck is in place.

2nd NOTE: This should not be done in bright/direct sunlight.

It’s just that easy!

Why It’s Important to Choose Only the Best Cement for Construction

Cement is supposed to be the most important element of any construction as it is essential in holding the structure together firmly. That is the reason why it is essential to choose high quality cement that can guarantee the durability of a construction project.

On the quality of cement depends the strength of the concrete, the base of any construction project. A high quality concrete can efficiently resist environmental degradation and protect the building from harsh weather and bugs. So what all does a builder look for before getting into a construction project.

Is your supplier reliable?

A builder must meticulously plan and look at the precise requirement of your project.Only then will he be able to zero in on a good building material supplier who can bring him the best cement for construction. A supplier who is really dedicated to providing excellence when it comes to quality of cement and service will certainly be able to back his claims with genuine knowledge. His previous clients’ testimonials will also serve to be useful in knowing his reputation as a supplier, as well as his experience in supplying high quality cement. Such a supplier can be a reliable bet in building a durable structure. The builder can also measure his performance so far from the quality of his marketing and branding.

If a building material supplier is renowned,it is mostly because he has been consistently supplying appropriate material. There is a practice among ordinary suppliers to supply cement mixed with external elements. This mixing dilutes the quality of the cement and is risky for construction. Therefore it is always safe to look for a reputed supplier before and invest only when you are sure that the cement you are buying is of high quality and the best cement for construction.

It is recommended that the builder puts in a little effort in researching to find out where a reliable supplier with guaranteed quality service can be found.Proper research, that includes meticulous inspection of a supplier’s work, ensures that you do not get dazed by just a flashy branding exercise.

Cement types

Some of the main varieties of cement, besides ordinary portland cement, are:

1. White: This is formed when it is freed of colouring oxides such as manganese, iron, and chlorium. This is manufactured using oil, and not coal, as fuel. This is mostly used for plastering, finishing and decorating such as marbles or glazed tiles’ fixing.

2. Coloured: Ordinary cement is given colours by intimately mixing pigments with it. Chlorium oxide, for instance makes it green, Cobalt makes blue, Iron oxide makes it brown, red or yellow depending upon the proportion used. Their use is to give desired colours to walls, floors, and window sills.

3. Low Heat: This is made especially for huge concrete works. While constructing dams, for instance, the heat created due to hydration of cement can damage the construction. Low heat cement, which contains only 5% of tricalcium aluminate and 46% dicalcium silicate, can manage to keep the construction intact.

4. Quick Setting: This is formed by adding a little aluminium sulphate after reducing the amount of its gypsum. It is further finely grinded to enhance its quick setting property. Living up to its name, it starts setting within 5 minutes, literally, once you start adding water. By half n hour, it is quite hard. This is used to block hold water that is static or slowly running.

5. Rapid Hardening: This is manufactured by burning at a high temperature with increased lime content. This apparently helps in enhancing strength and speeding up construction activity.

Do a quick field test of the cement you are going to use by checking:

– the date printed on the cement bag for freshness

– its smoothness by rubbing it between fingers

– whether it floats in water for some time before sinking

– uniformity of its colour

– whether there are any lumps due to moisture

– its strength by slowing submerging a cake of the cement in water (it should retain its shape even after 24 hours).

Making sure that the cement used is the best cement for construction is a builder’s responsibility, not his prerogative. He is morally and legally obliged to use high quality cement, for it is going to determine the safety of the people who are going to live and work in the building.