I recently came across some training material I used about 20 years ago. The focus was to help real estate agents convert renters to homebuyers. I read what I had prepared back then and realized the basic reasons for buying versus renting have not changed:

1. Appreciation. The value of a home, in the long term, will increase, providing you take care of it. Sure, in today’s economy, that doesn’t seem likely, but the economy will rebound and when it does, your home will appreciate.

2. Equity. The money you pay towards a mortgage is like an investment account. As the value of your home increases and your mortgage balance decreases, your equity grows incrementally if you take a 30-year fixed rate.

3. Tax Advantage. Rent is not deductible; it’s just an expense. Property tax and mortgage interest provide valuable deductions at income tax time.

4. 30-Year Perspective. At the end of 30 years, how much would you have paid in rent? Assuming an annual increase of 4%, $1,000 a month in rent right now becomes $3,119 in 30 years. Do you even want to add up your rent payments? Meanwhile, a 30-year fixed rate mortgage payment doesn’t increase except for the minor real estate tax increases. Presumably, your income does so your debt-to-income ratio is far better as a homeowner than a renter. read more…

Homebuyers can take advantage of record low interest rates and home values. Interest deductibility hasn’t changed and, if anything, the tax rate will go up, which makes the present buying situation extremely palatable for the first-time buyer and yet another compelling reason to purchase.

So why aren’t more people buying homes now? Sure, job insecurity and concern over property appreciation are factors here, but there are still plenty of prospects who would qualify for a mortgage—except they are paralyzed by indecision and misinformation.

The bottleneck that I am seeing is that mortgage lenders are not effectively communicating the value of owning versus renting, regardless of the economy. We need to paint a better picture of what the future will look like for people who continue to rent. They’re not seeing immediate pain. Instead, they’re sitting back, feeling thankful that they don’t have an investment that is losing equity or a mortgage they can’t afford. read more…

My daughter, a high school senior, returned last week from a Young Life Expedition in Saranac Lake, NY. She spent a week with 300 other teens in an adventure that gave them new perspective.

At check-in, every attendee had to leave their cell phones and all electronic communication devices with the camp’s administrators. They had to forego their ability to call, text, and tweet their friends. They gave up all access to Facebook. Sounds like a torturous experience for a young person, doesn’t it? But my daughter said it was the best week of her life! And this comment came after we had taken an Alaskan cruise the week before.

During this cell-free week, kids from New York, Virginia, Pennsylvania, Chicago, and other areas became entrenched in an environment where they had no choice but to interact in person. They learned how to live for the moment without the distraction of electronics.

Would the experience have been the same for them if the kids had been allowed to keep their cell phones? Absolutely not. Texting and Facebooking have become an addiction. Kids are not gaining the interpersonal skills that prior generations developed. The place for electronic communication should be to build on relationships that are established in person. It’s a continuum but not a means to engage and sustain a relationship. You can’t replace the human connection. My daughter discovered that reality, much to my delight.

I recently took a cruise to Alaska, an amazing journey to this country’s last frontier. One of my most memorable experiences was a slow train ride up a 33-mile mountain pass in Skagway, along the route where prospectors hiked, on foot, during the Yukon Gold Rush (also known as the Klondike Gold Rush) that began in 1896. These hopeful miners, who had nothing but faith and rumor to go on, were required by the government to carry about 2,000 pounds (a ton) of provisions before they could head up the mountain. It was impossible to just haul that much weight so families would leap-frog—carrying a portion of their supplies, leaving them, and going back for more. So, the 33-mile trek was more like a hundred, and they did it along a three-foot-wide mountain pass in the company of other prospectors attempting the same journey.

Once they reached the top, these golden pioneers faced another challenge: build a raft to carry themselves and their rations across a 500-mile Yukon River. In spite of the difficulty, more than 100,000 people attempted this trip, solely to unearth the riches they believed awaited them there. And 99 percent of them were disappointed.

What drove these people to the point of chasing a dream to such an extent? read more…

When the money gets tight, we cut back on those items we see as luxuries. Dining out, going to the movies, and maybe even cutting back on services like cable channels, satellite radio, and cell phone data plans—they all get trimmed or maybe axed altogether. You do what you have to do to get by, but sometimes shaving dollars doesn’t make sense—particularly in the area of professional development. When I see professionals skimp on education, I have to say, “Stop!”

I regularly receive invitations to attend webinars, workshops, and classes about a wide range of business-related topics. And, while free is certainly hard to refuse, I weigh each opportunity so that I invest both my time and money in the right avenues. If there is a course that costs $2,000, I avoid the knee-jerk reaction of “too expensive!” In truth, I’ve participated in several such programs and the tuition fee was by far outweighed by the valuable knowledge, connections, and insight I gained from the experience.

With a rapidly changing world, you must stay on top of the latest trends, technology, and best practices, no matter what industry you work in. You owe it to yourself as a businessperson to stay current so that you can be giving your customers the best advice. Don’t compromise your potential for success by looking at education as an expense. It is an investment that will deliver a solid return. Consider knowledge as an asset. When you broaden your knowledge, you expand your inventory.

I recently blogged about the shortsightedness of car rental agencies that try to compete solely on price. Not every consumer is focused on the bottom line. Yes, of course, money matters. No one wants to spend more than necessary to get what they want. But these same people are willing to pay more when the return on that investment comes in a currency that doesn’t have a dollar sign attached to it.

I’m speaking of alternative currency. We trade up or down based on our value perceptions. Convenience, for example, is an alternative currency. Memories are an alternative currency. Money buys tickets on the glass to a Chicago Blackhawks playoff game, but years later I will never remember the price, only the experience, which was worth every penny.

Businesses need to sell to these alternative currencies. We need to recognize that if we make our products or services strictly about price, that’s all they can be. By trading on price alone, we reduce these valuable items to a commodity. And that is how they will be measured by the customer. read more…

When you arrive at the Sky Harbor Airport in Phoenix and want to pick up your rental car, you take a shuttle. Not the Hertz, Enterprise, Avis, or other individual rental agency shuttle. All renters are taken in one bus to their respective rental lot. In the beginning, the national brands (like the aforementioned) were not too keen on having their customers carried along with the others because they believed they might be swayed by the low rate agencies.

They were mistaken. There are no lines at the other companies. If renting a car is all about a low price, shouldn’t there be more people lining up at these small independents?

Truth is, the customers know that price is only one factor in the decision. People rent from the big guys for the same reason they dine at Applebee’s or Outback Steakhouse, and stay at a Sheraton or Hilton, for instance. There is peace of mind in knowing what a brand represents. read more…

If your company is losing money, it’s not a problem of today. The root is in yesterday. During the heyday—when the economy appeared strong and people were confident in spending—the sins were covered up. There was room for error because consumers were not scrutinizing every expense to ensure that the pennies were protected.

Picture this. At the beach, when the tide is high, swimmers can be up to their shoulders in water and nothing below the surface is showing—not the excess weight or the crazy bathing suit. Then the tide recedes and these same people are in ankle-deep water. And the flaws are exposed. Everyone can see what was hiding underneath. read more…

Think about what you accomplished today. Did you schedule a meeting with a client? How many prospects did you contact? Did you close any deals? Did you do anything to increase your value to your customers, or even one in particular? Or did you fall prey to distractions, like tweeting or Facebook updates (admit it—you were playing Farmville or Mafia Wars)?

I was talking with a coaching client recently. She wasn’t making her sales goal. She would usually do ten loans in a month but had only closed four. When I asked her what got in the way, she gave me a litany of personal issues that sucked up her time that month and kept her from focusing on her work. And the price for those distractions was a really bad sales month. read more…

Don Miguel Ruiz is a New Age spiritualist and author of “The Four Agreements”, which has sold more than four million copies. Ruiz promotes the concept that we need to free ourselves from beliefs that are limiting. Here are the Four Agreements:

1. Be impeccable with your word.

2. Don’t take anything personally.

3. Don’t make assumptions.

4. Always do your best.

The first two agreements involve integrity and self-confidence. A common side effect of compromising the combination of this one-two punch is failing to provide immediate feedback. Too often, managers have difficulty in delivering feedback because they worry about hurting someone’s feelings. Does that really help the people involved? read more…