Sep
3
Why First Time Home Buyer Programs Are a Bad Idea
September 3, 2008 | 1 Comment
… They had accepted. I was a home owner. I was pretty excited.
The house needed some work. Actually it needed a lot of work. The previous owners let us move in early (they had pushed the closing back because their new home wasn't yet finished). As we were moving in we noticed a funny gas small. I called the gas company and they came out and told me the furnace was shot.
The home inspector had told us to get a furnace inspection as it was old and didn't look good. Since our …
Aug
21
Spending More on Luxuries Than Necessities
August 21, 2008 | Leave a Comment
… dictated by invariable physical laws. The force exerted by circumstance.
The state or fact of being in need.
Pressing or urgent need, especially that arising from poverty.
Source: http://www.thefreedictionary.com/
My Own Example
I decided to illustrate this by using my own situation. I was curious how much I was spending on luxuries vs necessities each month. So I compared my monthly recurring bills.
My necessities include natural gas, water/sewer, electric and …
Aug
13
A Random Walk Down Wall Street
August 13, 2008 | Leave a Comment
… of this stock.
Malkiel contends this chart will look like your average stock price chart. In fact, if you flip a coin enough times you will see heads come up many times in a row (the same for tails). This can lead to the stock price going up and down in a pattern when in reality no pattern exists.
He uses this example to condemn "chartists" (practitioners of technical analysis ). In fact, he had his students each perform this experiment. Then he showed the results to some of his …
Aug
11
Should I Buy a New House?
August 11, 2008 | 3 Comments
I've been struggling with a decision. Should I stay in my house or sell it and either move into a condo or buy a new house ? There are pro's and con's for each.
I live in a rather modest home (especially compared to today's standards). We have one child and we could use a little more room.
I've been considering a larger home but my wife doesn't want a new larger house. She feels that a …
Comment by Elan Vital: … half of the transaction- if it is a buyer's market for …
Aug
6
… Most articles don't tell you what you really need to know. This one does. I'll give you the facts about home ownership.
Fact: Houses need maintenance. Your maintenance costs could be as high as thousands of dollars a year (or more).
Fact: Your must pay property taxes on your home each year. Local governments are always trying to raise property taxes.
Fact: Your mortgage company will require you to carry home owner's insurance.
Fact: You'll put a lot of labor into …
Comment by Why First Time Home Buyer Programs Are a Bad Idea - Wealthy Reader: … When you subtract your maintenance costs from the …
Aug
4
Track Home Improvment Expenses for Tax Purposes
August 4, 2008 | Leave a Comment
… keep track of your expenses (and receipts ) from home improvement projects? What are the tax consequences?
Taxes
Generally, there are no tax breaks for most home improvement/remodeling projects (excluding those projects that qualify for some type of tax break based on energy savings) in the year that you make the improvements.
From Jackson Hewitt :
The terms repairs and improvements can be confusing as it applies to the value of your home. A repair or maintenance …
Aug
1
Should You Buy a New Car for Better Gas Mileage?
August 1, 2008 | 2 Comments
… It would be pure insanity to trade in a vehicle and assume the costs of a new one (sales tax, dealer profit, etc) just to save on gas.
What If the Cost of Gasoline Doubles?
Let's double either the gas price or the miles driven. That puts me at $150 per month for gasoline. Is a new vehicle worth it at that point?
No. I purchased a new vehicle I would have to pay excise (sales) tax and get it titled (licensed). Excise tax in this state is 3%. If I spent $10,000 it would …
Jul
31
How Much Do You Spend On Gas Every Month?
July 31, 2008 | 1 Comment
… will give you directions and approximate distance. If the line drawn on the map doesn't show the actual route you take, you can use the little circles on the route to drag and drop the line to match your actual route to work.
Since I have to drop my son at daycare, I first enter the address of the daycare (you can search by the business name if you don't know the address). Then I use the "Add Destination" link to add the gym address. Then I enter my work address. Finally, since I take …
Jul
30
The Real Reason I Paid Off My Mortgage
July 30, 2008 | 2 Comments
… right now, there doesn’t seem to be a short-term low-risk investment that will return an after tax return in excess of most 30-year fixed mortgage interest rates. About a year ago, several online savings accounts were offering 6% APY, and PenFed had a 6.25% CD promotion. Those might have tempted some of the more risk adverse people, as they were probably safer than paying down your mortgage.
Jeff is making a good point here. Interest rates (for investors/savers) are terrible. That …
Comment by Jeff: … get an after tax return of 1.625% on extra money I …
Jul
29
More Reasons to Pay Off Your Mortgage
July 29, 2008 | 4 Comments
… that you know has ever bought a house appreciating at or below 'average'?
Didn't think so …
Actually I think a good many people are experiencing that right now. I know several who are selling or who have sold at a loss because they chose to move for a job. The real estate market is pretty rough right now. Real estate prices don't always go up. It goes down or it could stay at the same price.
However, this is a comment about real estate prices in general. I'm not against …
Comment by Jeff: … return an after tax return in excess of most 30-year …