With rental homes scarce and rent prices on the rise buying a home beats renting.
There are two main factors at play that make buying versus renting a better choice.
- According to Rent.com, over the next two years rents could rise 7%.
- Nationally, home prices have finally dropped enough to create a buying opportunity. Since the price peak in 2006, home prices are down 32%.
What does this mean for your pocketbook? Home ownership is a forced savings plan. The mortgage bill comes in every month, the homeowner pays it and the mortgage balance goes down. Experts agree most homeowners will break even after just eight years in their home.
Renters, meanwhile, are just as likely to spend their savings as homeowners. They’ll wind up with less money over the long haul because they have no forced savings. To see the real savings in dollars and cents, use a Rent vs. Buy Calculator.
We think of the spring and fall as home clean up time but taking advantage of the warmer weather and time off from work makes summer the perfect time to do a home maintenance checkup.
Get Ready for Cooler Weather
Do an Energy Audit
Take a walk around your home and take an inventory of gaps and cracks. Plugging leaks can save you 20% on heating and cooling bills. Look for gaps under switch plates. If you find gaps install foam inserts. Make sure to turn off the electricity at the circuit box before doing this.
Don’t forget to check where windows meet walls, walls meet floors and pipes and wires enter the home. Plug all gaps with caulk. Other places to find leaks are fireplace dampers, mail slots, air conditioners, attic doors, baseboards and the weather stripping surrounding doors. Look for daylight, feel for drafts and listen for rattles; all clues to escaping heat.
Now look outside the house. Look for gaps or damage where pipes, vents or wiring enter. Also check siding for gaps or damage, pay attention to corners where the material joins and where it meets other materials, like chimneys, windows or the foundation.
Save Money on Heat and Hot Water
Save on heating costs next winter by insulating the hot-water pipes in the basement or crawl space. Insulating pipes is easy; all you need to do is snap foam jackets (called sleeves) around the pipes. Make sure you know the pipe’s diameter to get the correct fit.
Get the Outside in Tip-Top Shape
Pretty the Patio
There is nothing more uninviting than dirty patio furniture. Mix up a bucketful of soapy bleach solution to keep your patio furniture squeaky clean. Mix 2/3 cup trisodium phosphate (TSP), 1/3 cup laundry soap powder, a quart of bleach and three quarts of warm water. Use a rag and soft-bristle brush to remove embedded dirt on synthetic coverings, metal and wood furniture. Rinse thoroughly and let dry.
Don’t destroy the deck
Don’t let your pretty deck flowers rot your wood deck. Make drainage room in your potted plants by setting pots on pot “feet”. For a frugal solution; just prop bricks under the pots.
Look out for tree trouble
Trees that hang over your roof, rub against gutters or dropping loads of leaves and sticks onto the roof should be pruned. Overhanging branches can provide a ladder for rats and squirrels, and diseased or damaged trees may fall on your home in a storm.
Fix the fence
Look for damage along the fence line. Mow the grass next to the fence low so you can get good visibility. Keep your fence in tip-top shape by make prompt repairs. Check fence posts for signs of rot (poke soft spots in the wood for crumbling or decay). Remove and replace the damaged areas. Keep fences painted or stained to protect the wood. If dogs or other animals are tunneling under the fence attach a 2-foot-wide apron of wire mesh around the inside perimeter of the fence.
The temperature is dropping and the heating bills are going up. Some quick and easy tips will have you saving money this winter on home heating bills.
1. Set your thermostat back. For every degree you set your thermostat back over eight hours, you’ll save about 1 percent on your heating bill each year.
2. Use a space heater. If you spend most of your time in one area of your home it is less expensive to use a space heater than turn up the heat in your entire home.
3. Open blinds during the day to let sun in. At dusk, close them to trap heat.
4. Inspect weather stripping around exterior doors. Replace old, cracked, or missing stripping.
5. If heat is escaping at your doors, attach a sweep to the bottom of the doors. Sweeps are flexible plastic strips that are easily screwed to door bottoms, and keep cold air out from below.
6. Fill gaps around windows with interior and exterior caulking. If cold air is coming in around the sashes, install appropriate weather stripping.
The topic of money can be difficult but for couples it is often one of the most fought about issues. It is important that couples take the time to discuss finances and set financial goals. A well thought-out plan will keep your relationship healthy and keep you both moving toward your goals. Follow these tips to help keep the lines of communication open.
1. Don’t Stop Talking. Money is still a taboo topic and we often don’t have a clear idea about how our partner thinks or feels when it comes to spending versus saving. Talking about your goals with your partner is a simple way to make sure you’re both on the same page when it comes to your finances.
2. Find Balance. Balance power around money. One person making all the decisions and having all the control when it comes to finances is often a recipe for disaster. Find ways for you both to be equally engaged in all money decisions.
3. Create a System. Have a clearly defined money management system that covers everything from who handles the mail to who sends out the checks. Without a well thought-out plan in place, it’s more likely that things won’t fall through the cracks.
4. Immediately Address Problems. When problems arise, address them immediately (no secrets allowed). Avoiding the issue only makes it more toxic and drives a wedge in the relationship.
5. Have Annual Checkups. Schedule an annual money checkup. Things change and just like our physical health, money management needs an annual checkup to keep it healthy and relevant. Set aside time to sit down with each other and evaluate what’s working, what needs to be fixed and address any questions or concerns that either of you may have.
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