Picking the right insurer for your home can be a daunting task especially if you’re a new home buyer with no prior experience. There are so many providers out there with such a vast range of insurance packages, it’s difficult to tell which is the right plan just for you.
Fortunately the internet makes home insurance shopping much easier especially with sites like InsWeb for the US and Money for UK residents. InsWeb provides a free database which offers quotes from up to 8 insurers and the UK Money site provides up to 20. They are basically search engine comparison sites so you can access quotes from one location without having to hop from one insurance site to another.
There’s also an article on the CNN site under the money section which I recommend reading that discusses the top things to know about insurance. They even provide some other good articles worth reading pertaining to home ownership in general.
Insurance coverage and requirements also vary based on which state and country you live in. For example, I live in San Francisco which is very earthquake prone so an optional earthquake insurance option is available. Others who live in the mid-west are prone to hurricanes so their insurance will be more expensive. Regardless of your location, it’s always important to seek out and find at least 2-4 quotes before making your decision. Not only will you save money but you’ll also have peace of mind knowing that you didn’t just select the first insurance plan you came across. Good luck in your search!
Well here we are near the end of yet another decade.2009 has proven to be a trying year of change for most all of us.
Even though we have all been working hard, it is the remembrance of the good things that we have been blessed with and the many fine people who have touched our lives that we give thanks for.
Every day I am grateful to have met each and every one of you who have bestowed upon me your loyalty and friendship.Your confidence in my ability as a Realtor and friend keep me going year after year.After 32 years in the business, I continue to enjoy what I do and the people I meet, have met and work with. As always, I am here at your service for you, your family or colleagues should you require the services of a Realtor in the near future.
Let’s hope that 2010 will prove to be a better year for all and that health, prosperity and success will prevail.
May peace and joy be with you this Holiday Season.
RISMEDIA, October 19, 2009—(MCT)—When it comes to planning for retirement, there are many questions to answer. But to Anna Rappaport, there are three that matter and perhaps one that doesn’t get enough attention: When should you retire? When should you collect Social Security? And what should you do about the equity in your home?
If you get the answers to those questions right, you’ve pretty much got retirement right, according to Rappaport, a former president of the Society of Actuaries as well a president of a Chicago consulting firm bearing her name.
Now, there’s plenty of information about the first two questions but not so much about the third. And that’s the one that people really need to get right now, especially given the findings of the SOA’s recent work on the subject. Here’s a snapshot of what Rappaport and her colleagues found:
What should you do with the equity in your home? The equity in your home represents a big part of your wealth. If you’re married, your non-financial assets—mostly the equity in your house—represent about 70% of your total assets, according to a 2009 Society of Actuaries report titled “Segmenting the Middle Market: Retirement Risks and Solutions.” What’s more, the report noted the median value of financial assets is less than 1.5 times median income—$75,000—for the majority of middle-class households and that the median value of financial assets is just three times the median income—$132,000—for the vast majority of affluent households.
There are caveats in the 70% figure, though. The SOA report excluded the value of Social Security and traditional pension plan benefits, which if included would reduce the percent home equity represents to total assets. And the percent is based on analysis of the 2004 Survey of Consumer Finances. Things have certainly changed since then.
Still, the number is relevant because the equity in your home—downturn or not—is still “a very significant retirement asset and options related to choice and financing of housing are important considerations for retirement planning,” according to “Overview of Housing Wealth, Options, and Spending Issues in Retirement,” a just-released SOA paper co-authored by Rappaport. Rappaport said that housing costs currently represent about 35% of a pre-retiree’s budget. And that means housing equity, as a percent of total assets, is perhaps more than twice what it should be.
Software fails to consider housing wealth But even though the equity in your home is a big deal, the SOA’s study finds that much is lacking when it comes to helping average Americans figure out what role housing wealth should play in financing retirement. “Although housing wealth was extremely important to middle class Americans, it did not seem to represent a primary consideration as they engaged in retirement planning,” Rappaport wrote. “In fact, many planning tools do not consider it explicitly, leaving a hole in advice that could be provided to middle income Americans.”
Indeed, most retirement planning software programs don’t consider housing wealth, and of the few that do, it’s apparent that there’s no agreed-upon standard for doing so. Rappaport wrote. “The software tools that did consider housing wealth approached it from a wide range of methodology,” she wrote.
And users of these sorts of tools, especially those who have much of their wealth in housing, should see all sorts of red flags and disclaimers when the software doesn’t address housing wealth. (By the way, most calculators of this sort don’t include the new present value of your Social Security benefits either and that’s something that should be noted as well).
How to use housing wealth to finance retirement
So what are people who have 70% of their wealth tied up in their home to do? There are a number of options for using housing value to provide for retirement needs, according to Rappaport. But it should be noted that there is not a consensus on the best course of action.
“Further research needs to be done to define the options, identify the trade-offs, provide a framework for analysis and help individuals make decisions,” Rappaport wrote. And, as with most things financial, she said the ultimate best course of action will also depend on “individual preferences and circumstances.”
That said, here are the options you have to unlock the equity in your home: -Pay off the mortgage, if possible, to reduce overall expenses
-Sell and downsize to a smaller home, freeing up funds for investment or annuity purchase
-Sell your home, invest the proceeds and then rent
-Secure a home equity loan or secondary mortgage on the house
-Get a reverse mortgage
-Rent out extra rooms
-Rent out your primary residence and live elsewhere at a lower cost
-Keep the house mortgage-free, and let its value serve as an emergency fund if needed
Not all these options might be viable for your retirement plan and some of the options aren’t quite ready for prime time just yet. For instance, “reverse mortgages may offer significant income potential to some households, but at relatively high cost and risk,” Rappaport wrote. “Furthermore, they may help older home owners remain in their homes, but they limit future housing choices and are presented as a last resort option by some financial planners.”
The Bottom Line
All this means that there’s much more work to be done, said the SOA report. Researchers and advisers need to put finger to calculator and keyboard to try to figure out what portion of their clients’ personal wealth should be spent on housing and whether it should be scaled back.
What’s more, researchers need to work on models that show the trade-offs between lower spending on housing and more savings put into financial investments vs. what we have now, higher spending on housing and less savings in financial assets. And think-tank types need to “work towards a consensus around accepted methods” to help Americans better understand how to incorporate housing wealth in their retirement plan.
(c) 2009, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.
If you’re considering buying a house that’s more than a few years old, there may be some hidden problems you can discover before you make a purchase offer. Although putting a professional inspection contingency in the contract will help protect you from surprises, doing your own inspection before making an offer could save you considerable time and money.
How can you tell if a property is worth buying? Here's how to look at the big picture -- for structural concerns, major repairs that are needed, appliances that have to be replaced.
Crawl The Walls
Start going to the right when you enter the house, and keep on following to the right. You will check each wall that way. Do the same on every floor. Look for settlement cracks, separating joints, defective plaster or other signs of stress or damage. Check wallpapered areas for crinkling or gathering, which may mean walls are settling or shifting.
Look For Leaks
Loose or wrinkled wallpaper could indicate a water leak somewhere. Look for water stains on the ceiling and walls. You may have to look closely -- bring a flashlight -- in case they have been painted over or repaired.
Spend time in the bathrooms and in every area with pipes, checking for leaks and drips. Also, run the shower and basin, then flush the toilet to check water pressure. Look for cracked or loose tiles and missing grout or mildew stains on the walls or floor, which could indicate a behind-the-wall leak.
Plug Into The Electrical System
Check every electric socket or outlet. Use a plug-in night light and turn every switch on and off. Look for extension cords and multiple plugs in sockets, which could mean insufficient or poorly placed sockets. Also check every appliance to be sure it works well.
Focus On Condition
Open and close every door and window. Look and listen for squeaking, sticking, or a tendency to close on their own. Check for evidence of shifting or settling around the front stoop, chimney and walks, and places where the driveway and the fence meet the house. Also check the deck for sturdiness and look for rotted wood. Go into the garage and check the walls, floors and doors -- inside and out.
Pay Attention To Pests
Look for termites and ants. Especially look along the foundation, around doors and entry points of wiring and pipes. Check the grading of the yard to be sure water runs away from the house.
If everything looks good to you and you decide to purchase the house, be sure to require a home inspection by a professional inspector before settlement. You will want a professional who will crawl into the crawl space, climb onto the roof and poke around with a flashlight in the attic. Your professional should also carefully inspect the major systems -- electrical, gas, plumbing and heating/air conditioning.
You can and should insist on a written report detailing what the problems are with the house, how important each one is. You may have to consult a contractor to estimate repair costs on any problems found.
POSTED BY: Barbara Watkins & Eastern Shore Real Estate AT 11:00 am
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Rising college costs are causing some parents to consider alternate housing for their students: They're bypassing the dorm and off-campus apartments in favor of buying a condominium or single-family home. In some cases, it might be not a bad idea.
Take the Oklahoma City area. A single-family home will cost an average $764 a month, including the mortgage payment and taxes, assuming a 30-year fixed-rate mortgage and a 20% down payment, according to Cyberhomes.com, a consumer home-listing portal owned by Fidelity National Financial. Renting a comparable home near the University of Oklahoma, however, would cost an average $1,088 a month, the firm says.
Lawrence, Kan., is another college town where buying may be a good option. Monthly payments on single-family homes average $859, compared with $1,162 rent.
"More and more people are thinking about getting a kid into a property because tuition is so high," and room and board also continues to creep up, says Rose Price, a real-estate agent who works in Champaign, Ill., where the University of Illinois is based.
Room and board averaged $7,404 for public, four-year universities and colleges in 2007-2008, up 5.3% over the last school year, according to the College Board. For private schools, room and board averaged $8,595, up 5% from the previous school year.
Another reason parents might be interested in these college towns is that often they're "recession proof," says Brent Lipschultz, a personal-wealth manager at Eisner, a New York-based accounting firm. A college town produces a certain amount of housing demand no matter what the economy is like, keeping the market healthy, he says.
But before spending a long weekend looking for real estate, parents should consider:
1. Buying is not a bargain everywhere. Consider the market conditions, and figure in all the costs before deciding whether to buy or rent. Sometimes, college markets are affordable to buy in because there is heavy competition for rentals, which drives rents up, says Marty Frame, general manager for Cyberhomes.
But in other markets, renting is still more affordable.
For example, if your student is going to the University of Southern California, based in Los Angeles County, an average monthly payment on a single-family home will be $3,163, compared with an average $2,270 rent, according to Cyberhomes data. Other markets where renting is less costly than buying are Eugene, Ore., where the University of Oregon is located, and Fresno, Calif., the home of Fresno State, according to the firm.
Also, consider the overall health of the real-estate market. While prices might indicate that it's cheaper to buy than rent, buyers might not want to buy into a market still experiencing price declines.
2. Not every kid is ready to be a homeowner. It takes a responsible kid to take on the duties of a homeowner, Mr. Frame says. If you decide to buy a place for your college student, make sure her or she is up to the challenge.
Even then, the plan can backfire. Ms. Price knew of one college student living in a home who was extremely responsible -- but he got homesick after a year and left campus.
3. Being a college landlord isn't easy. While the first use of the property will be to house your college student, it's also important to have a plan for the home after your offspring graduates. Considering renting it out to others after graduation? Make sure you have what it takes.
If you're renting to students, tenants will likely turn over every year, which involves finding new renters and making improvements or repairs annually, Ms. Price says. Plus, it's good to assess upfront if there is strong housing demand year round, and whether there are competent management companies to oversee the property down the road, Mr. Lipschultz says.
4. A place to retire. Maybe the next inhabitant of the space won't be a renter at all. It might be you.
Increasingly, retirees are seeking out college towns for their cultural amenities and access to health care, among other perks. Two of AARP's top 10 healthiest places are college towns Ann Arbor, Mich., and Madison, Wis. "Many universities are trying to attract their alumni. Some are building complexes that are geared for alumni," says AARP's Gabrielle Redford. That said, your idea of a great place to retire might not match your college student's idea of a perfect place to live.
5. Discuss it with your college student. Before you schedule a single showing, make sure that this is something that your child is also interested in, Mr. Lipschultz suggests. These are your college student's first years away from home, and he or she might not want this type of parental involvement.
Also check to see if there are university rules that require students to live in campus dorms their first year or two, he says. It might not be a bad idea anyway to spend a year in the dorm and for your student to figure out what part of town would be best to live in, he adds.
RISMEDIA, October 12, 2009—As the housing market continues to struggle its way toward stabilization, Steve Cinelli, founder and chief strategy officer at PRIMARQ, discusses the notion of equity financing and how he and his team are working with leaders in Washington, D.C., to change the face of real estate. “As the housing market began to crumble and financial institutions began to fail, both Washington and Wall Street provided solutions in hopes of fixing the economy, but most of them aren’t going as far as they should,” says Cinelli.
PRIMARQ is currently in the process of building the first-ever exchange for investing and trading in owner-occupied real estate equity and is creating a lot of buzz throughout the real estate industry. While the exchange is not yet open, its premise could change the way in which the real estate industry does business. Based on the same principles as NASDAQ, PRIMARQ is bringing a method of shared ownership to the housing industry—one of the only industries in the country that doesn’t revolve around a shared-ownership foundation.
“We have to change the game,” says Cinelli. “Banks can’t afford to lend at the same levels at which they have been lending and it isn’t prudent for home owners to have 90% of their monthly income tied up in monthly payments,” he continues. “Within the U.S., a preponderance of financing for the housing market is debt, but we need to employ a practical financing system for the future of the housing market.”
With housing stock being the single largest asset in the U.S. and there being no practical method of shared ownership, PRIMARQ is working on behalf of the homeowner, home buyer and investor to put the American dream within reach as the company lowers the barrier to homeownership.
“Our approach to equity financing is to enhance the downpayment capital within the real estate market, and rather than overleveraging the process, we have created a system in which a portion of the home can be sold.” Equity financing will add affordability and sustainability to the real estate market as it reduces the amount a homeowner pays monthly as the mortgage loan is smaller.
“Our equity financing solution can assist buyers into getting into homes and it applies to all income levels,” says Cinelli. “Real estate transactions will become more affordable because individuals buying homes won’t have to borrow as much money from banks and their payments won’t be as high as they have been in the past- creating more financeable transactions and more sustainable ownership.” The program is beneficial to the industry as it creates financeable transactions since deals won’t fall through because of financing problems.
“Housing will remain soft until mortgage lenders get back in the game and equity financing can help expedite this process since mortgage lenders won’t have to lend on excessively aggressive terms,” he continues. “Because of the enormity of the challenge, there need to be game changing ideas. PRIMARQ has provided an innovative solution that is well-timed and will have a huge impact on the real estate industry as a whole.”
Many people face financial crises at some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or simply just overspending, it can seem overwhelming. But often, it can be overcome. The fact is that your financial situation doesn't have to go from bad to worse.
Your Options
There are several options to improve credit and the one that works best for you depends on your level of debt, your level of discipline, and your prospects for the future. Consider these options:
realistic budgeting
credit counseling from a reputable organization (like NCCF.org)
debt consolidation
or bankruptcy
Credit Repair
You’ve seen the ads and may have even received calls from telemarketers offering credit repair services. They all make the same claims, but only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
Contacting a Mortgage Loan Officer is a great first step to understand your options. For some, a home equity line of credit or refinancing are smart ways to free up cash to pay off high-interest consumer debt.
Inaccurate Credit Reports
Both the consumer reporting company and the information provider (the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information. That’s your right under the Fair Credit Reporting Act.
To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider if you see inaccurate or incomplete information.
If you don’t know whether your credit report is accurate or not, request a free credit review from Bill McGuire at First Home Mortgage. He’ll walk through it line by line with you to ensure everything is in order and makes sense!
As an experienced Mortgage Loan Officer, Bill can also offer insight and information on any mortgage financing questions you may have, whether you’re a first-time home buyer or a seasoned home owner looking into refinancing options!
If you currently own your own home and have been in it less than 2 years, then this may not be a wise time for you to move on buying a new home.. but.. for anyone else this could be the golden opportunity to buy the home of your dreams!
If you are waiting to see if prices will drop further, don't. Waiting could backfire on you. When we usually notice the market has taken a downturn, is in the rear-view mirror. By the time we've fully acknowledged the turn-around, its come and gone and turned back around to an upswing again. Prices have dropped and dropped, and now many areas are showing signs of re-stabilizing. This will be followed once again by slow yet steady increases in housing prices.
Act now in this optimal Buyer's Market. Your money will go a lot further in the current market and the vast inventory of available homes for sale more than doubles your chance of finding that perfect home at a fantastic price!
What do you want in a home and neighborhood? Make a list of what YOU want and contact me, I'll help you sort through the overgrowth of inventory and find the homes and neighborhoods that are right for YOU.
Don't know how much you can afford? Call or email me today and I'll be happy to set you up with a free, NO OBLIGATION, pre-qualification to get you started in the right direction!
