‘I Bought This House Based on Listing Photos Alone’: Was It Worth the Risk?

Angela Caban

The coronavirus has galvanized many die-hard city dwellers to pack up and flee for the suburbs or beyond. But how easy is it to pull off such a drastic move during a pandemic?

Just ask Angela Caban, a former Broadway dancer and decorative painter who, after 28 years of living in New York City, reached her breaking point in April. Quarantined in a cramped apartment in Queens, hearing sirens wailing all night, she decided to buy a house in Charleston, SC, an area she’d grown to love during her frequent work trips there over the years.

Yet since Caban was on lockdown in New York, she had to shop for homes remotely and make offers without seeing places in person. Here’s what it was like to buy a house sight unseen, and the lessons she learned that might inspire other longtime urbanites and first-time home buyers to make the leap themselves.

Angela Caban bought this South Carolina home online just from this listing photo.

Southern Bell Living

Location: Hanahan, SC
House specs: 1,804 square feet, 4 bedrooms, 2 baths, separate barn
List price: $234,000
Price paid: $232,000

How did the pandemic play into your decision to leave NYC?

You give up a lot to live in New York because it has a lot to offer, but when those things go away, you start to question why you’re giving up so much.

Once COVID-19 hit in March, April, and May, I was stuck in my apartment for three months straight with no work. I wasn’t getting unemployment because that hadn’t kicked in. I had no outdoor space to speak of. I just wanted to have some room to roam, be in nature, and not feel desperate. That’s what put me over the edge.

Caban’s old apartment building in Astoria, Queens (She lived on the ground floor to the right of the red awning.)

Google Maps

I felt like no matter how difficult New York had been in the past, this was a whole new ball of wax. I was there for 9/11 and Hurricane Sandy. When other tragedies had hit New York City, people were saying, “We’re in this together.”

When COVID-19 hit, all of a sudden there was suspicion. Everybody was frightened of everyone else.

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Watch: Listing Agents Answer Our Burning Questions About the ‘Silence of the Lambs’ House

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The ambulance sirens were nonstop. Plus, my small apartment was directly on the street, with the garbage cans right outside my window. So when I tried to open the windows during the pandemic, there were roaches coming in. I was like, “I can’t do this anymore.”

first time home buyer
Caban’s new living room is almost the size of her old apartment.

Angela Caban

What made you choose Charleston as your new home?

I’d have work meetings down here, and I had fallen in love with the area. I liked the sense of history, the weather. And financially it was doable. My mortgage now is less than half my rent for my tiny apartment in New York City.

Caban’s new spacious kitchen makes her want to cook again.

Angela Caban

How did your house hunt go?

I started looking near the end of April. I put an initial offer in on a house that fell through after the home inspector I’d sent to look at it said it would fall down in two years. Then I was in a panic because I’d already given notice on my New York apartment. So basically I had six weeks total to find another house and close on it. 

Caban loves spending time on her new front and back porches.

Angela Caban

What were your biggest challenges?

There was no inventory. Every house I looked at and said, “Oh, that’s a possibility,” would be gone by the time I called. An hour after being listed, the house would no longer be accepting offers!

How did you find the house you eventually bought?

Lucky for me, this house had been on the market for 60 days. I don’t know if it was because the photos were crappy, or the fact that the neighborhood was considered a little dicey. But I’m from New York, so the neighborhood seemed comfortable to me. I put an offer in within 48 hours of losing the other house. 

Wasn’t it scary to buy a house you hadn’t seen in person?

I was emboldened because I could always back out—you have two weeks to do so when bidding on a house. So I got in the car and drove down to look at it two days after my offer was accepted. I literally did it all in one day; it took me 12 hours to drive down. I saw the house and drove around for about two hours, and then I drove back because I had to start packing! I literally didn’t sleep for 26 hours. It’s probably why I have more gray hair now than I should.

first time home buyer
Caban is happy to have a fireplace to decorate for the holidays.

Angela Caban

How did the house look once you saw it, compared with the photos online?

It was much better than I thought. There is a lot of detailing, dental molding, wainscoting, and paneling in the living room, along with 16 windows that let in a lot of light. Plus, there’s the barn in the back that is another 600 square feet or so. My eventual plan is to make a workshop and a place to make art and teach.

Caban’s Charleston, SC, home has a 600-square-foot barn.

Angela Caban

How was the mortgage process?

It was a nightmare. Nobody wants to give mortgages to a single, female, sole proprietor who does not have pay stubs—especially during COVID-19, when they’re afraid people may default on their loan. They had also enacted new COVID-19 regulations that meant I had a boatload more paperwork. I had to submit letters from clients, proposals for work that was going to happen, invoices for work that I was still waiting to be paid for. … It was insane. I joked with them that I had to give them everything except a bone scan.

Caban’s new bedroom—one of four in her Charleston home

Angela Caban

How did you finally secure the loan?

Thanks to the help of my real estate agent, John Bell of Southern Bell Living, and his mortgage broker, Ethan Lane at Mortgage Network. They were amazing, and I was an absolute basket case: “What else do you want from me? I have no place to go. I’m going to be homeless!”

I look forward to giving them both a hug someday after COVID-19 is under control.

How did you close on the house during the pandemic?

That is a whole additional saga. I was finishing up a painting job in New York when all of a sudden on Friday they said, “You’re closing on Monday,” so I had to get an attorney to attend the closing for me. To get that, I had to get a statement notarized. In the middle of COVID-19! I met the notary on the street, but then I had to have two witnesses! It took me asking 18 strangers to find two people who said they’d help.

Caban painted her new door red and added the bumblebee knocker.

Angela Caban

How did you pull off a move during the pandemic?

I couldn’t get a truck in New York. So I packed my car and drove down to Charleston, where I dropped off my cats in the new house. Then I rented a U-Haul and drove it back to New York, hired two guys who then met me at my old apartment, packed the truck. Drove it back down to South Carolina, where I hired two more guys to help me unload the truck, and voilà.

Caban’s cats adjusting to their new home

Angela Caban

Was leaving New York hard after living there for 28 years?

Leaving was difficult because you almost feel like it’s a badge of honor that you’re a survivor in New York City. But down here, I finally feel like I can actually live my life instead of just trying to make it from one month to the next. I can think big thoughts and make big things happen, for which I simply didn’t have the energy in New York.

A formal dining room is a luxury that few New Yorkers can afford.

Angela Caban

Now that you’ve lived in Charleston for a few months, how are you feeling?

It’s like I can finally breathe, and I absolutely love it. I sit every morning out on my back patio and watch woodpeckers, blue jays, and cardinals. I have roses that are blooming that I planted.

Caban now loves starting her days watching birds on her back patio instead of exterminating roaches in her New York apartment.

Angela Caban

What advice would you give first-time home buyers and others looking to move now?

When you’re looking at homes online, don’t immediately discount a property just by how it looks in its photos. It’s like online dating that way. You need to see how it feels once you’re face to face and interacting with the space. Luckily, though, the minute I saw it in person, I knew I would be very happy here.

first time home buyer
Caban says she can finally breathe since leaving New York.

Angela Caban

The post ‘I Bought This House Based on Listing Photos Alone’: Was It Worth the Risk? appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Planning a Home Office? Check Out These Budget-Friendly Tips

Working from home has its perks. There’s the money saved from skipping the commute, and just think about all of that time you get back by avoiding crowded freeways or public transit during rush hour. As far as workplace attire goes, few employees would trade “work-from-home casual” for dress slacks.

But while working from home affords some new freedoms, it also creates new challenges. One of your biggest tasks is to create a productive, ergonomically correct workplace in your home without breaking the bank. If this sounds familiar, you’re probably asking yourself, “How can I set up a home office on a budget?”

Whether you’ve always worked from home as a freelancer or started during the pandemic, these expert tips will help you get started as you design your home office on a budget:

From finding the right location to choosing the ideal furniture, these tips will help you create your home office on a budget.

Strive for an ergonomically correct home office

Being home all day creates an unexpected obstacle: pain. Many workers find that transitioning from a well-equipped office to a makeshift setup at home leads to discomfort. That’s because many of them go from having a spacious desk, comfortable chair, and monitor and keyboard in their office building to working from a laptop in their living room.

If you suffer from neck pain or eye strain when working from home, you may be feeling the effects of poor ergonomics. Ergonomics, commonly known as the science of work, aims to optimize productivity and health in a workspace.

As a physical therapist with more than 25 years of experience, Karen Loesing, owner of The Ergonomic Expert, knows this issue all too well. Loesing’s company performs ergonomic assessments for businesses and home offices. Over the years, she has seen countless clients suffering from neck, back or other health issues due to poorly designed workspaces. But it doesn’t have to be that way, Loesing says.

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“Having an ergonomically correct workstation enhances productivity and generally overall happiness at work.”

– Karen Loesing, owner of The Ergonomic Expert

There are relatively easy ways to transform an ergonomic nightmare into a well-functioning home office on a budget—even if you’re stationed at the kitchen table, she says. And the investment is worth it.

“Having an ergonomically correct workstation enhances productivity and generally overall happiness at work,” Loesing says. “For those who are able to designate a certain space in their home where they can work without distractions—maybe even a window with a view and the flexibility to work at your own pace—it has been proven this makes for a happier employee.”

Who doesn’t want to boost their health, productivity and happiness in one fell swoop?

Find the optimal location for your at-home workspace

When setting up a home office for remote work, location should be your first decision, says design consultant Linda Varone, author of “The Smarter Home Office.” Depending on your living situation, there may be an obvious answer, such as that spare room you’ve always thought could become an office space.

If you don’t have a dedicated office, don’t despair. While you design your home office on a budget, think creatively about where it can be.

Varone once visited a client’s home to help reconfigure her workspace. The client was running a business from a table in the hallway. “At the end of each workday, she had to pack everything up and store it in the closet in the guest room,” Varone says.

But as Varone learned, guests only stayed over two weeks a year, leaving the room empty the rest of the time. It hadn’t occurred to the business owner, but turning the guest room into a home office for most of the year was the perfect solution.

If you’re setting up a home office for remote work, picking the optimal location for your workspace should be your first step.

“There are some simple, simple ways that people can rethink their home office without a big investment and make that space really work for them,” Varone says.

In addition to using a guest room, a dining or living room can also function as a home office on a budget.

Establish the ideal setup for your workstation

Once you’ve decided on the room, determine the location for your workstation, Varone says. As you plan your home office, consider placing your desk or table near a window, allowing for natural light and an occasional glimpse of nature. Don’t face directly outside; instead, aim for a line of sight that’s perpendicular to the window, Varone says. That’s because, even on an overcast day, you’d be looking into too much bright light if you’re facing the window.

“What’s happening is your eyes are adjusting back and forth between the bright sunlight that you’re facing and the darker light of your computer screen,” Varone says. “And that ends up being really fatiguing for the eye.”

If you live with others, the biggest challenge will be privacy. Try to clearly define the boundaries of your “office” if you can, such as with an area rug, she says. Then ask your roommates or family members not to enter your space while you’re working, apart from an emergency.

When you're planning a home office, try to clearly define the boundaries of your workspace if you live with others.

If you use a multipurpose space, be sure to tidy everything up at the end of the day, Varone says. Taking the 10 minutes or so to clean up your “office” will reduce clutter. Ultimately, a clutter-free space can reduce your stress and boost your productivity.

“That also has a benefit of becoming a little ritual and helping you say, ‘All right, my workday is over,’” Varone says. “‘Now I can focus on my personal life.’”

Choose your furniture wisely

Now that you’ve found the perfect location for your home office on a budget, focus on finding the perfect work surface. Maybe it’s a traditional desk. Or it could be your dining room table or kitchen counter.

If you do need to buy a desk or chair, don’t feel like you need to spend a fortune. Try looking for a used office furniture store or liquidator in your area, Varone recommends. You could even try searching online marketplaces for a gently used model.

When planning a home office and considering your work surface, what matters most is the height.

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The average desk is 29 inches high, Loesing says. This will likely accommodate someone who’s 5’8”, she acknowledges, but for everyone else? It will take some adjusting to make it fit for them.

That’s where your chair comes in. Most people don’t need a high-end office swivel chair to work comfortably. As long as you can adjust the height of your chair to fit you and your desk, you’ll have a comfortable setup.

It’s important to adjust the height of your chair to achieve a neutral position, Loesing says. If you don’t have the instructions from the manufacturer on how to adjust your model, try searching for videos online, she adds.

One more chair takeaway from Loesing?

“If you can’t spend a dime, at least get as comfortable as you can where you’re sitting, and sit all the way back in your chair,” Loesing says. “When you don’t sit so your back is against the backrest, you’re using your back muscles all day long instead of them being at rest.”

When you design your home office on a budget, make sure your chair and work surface allow you to get into a comfortable sitting position.

Adjust your furniture and equipment

As you continue planning a home office, you’ll likely find that your computer is your most important piece of equipment. But it can also lead to neck strain. Whether it’s a laptop or an external monitor, Loesing says screen placement is key. In fact, she says it’s the single most important feature to address—as well as the most commonly disregarded one.

While you plan your home office, Loesing recommends keeping the following ergonomic guidelines in mind to help avoid neck strain:

  • Align your monitor so your eyes are level with the screen. (That’s typically about 4” from the top of the monitor.)
  • Place your feet flat on the floor and your knees at about a 90-degree angle with the ground.
  • Place your arms at about a 90-degree angle from the writing surface so your shoulders are relaxed.

If you only have a laptop, and no monitor, you still have options for raising your screen to eye-level. “There are budget-friendly laptop risers on the market,” Loesing says. “If you don’t want to spend any money, you can place books or reams of paper to bring the screen up to eye level.”

When setting up a home office for remote work and thinking about your arm placement, note that Varone is a strong advocate for an external keyboard. If you’re working at a desk that has a keyboard tray built into it, that’s a great way to keep your arms at about a 90-degree angle, she says. If you don’t have a built-in tray, she says you can improvise by placing your keyboard on an inexpensive laptop table situated directly under your desk.

While the exact adjustments will vary depending on your equipment, height and budget, the focus is on acquiring a neutral position or a position where there’s no strain on anything, Loesing says.

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“With the addition of standing desks, which encourage movement, employees often find they have significantly more energy at the end of the day.”

– Karen Loesing, owner of The Ergonomic Expert

Stand if it suits you

If you’re intrigued by the idea of a standing desk, you’re not alone. Standing desk sales have soared over the last decade, buoyed by reports of the dangers of too much sitting.

“Static postures (e.g., sitting all day in front of a computer) present more fatigue than dynamic working,” Loesing says. “With the addition of standing desks, which encourage movement, employees often find they have significantly more energy at the end of the day.”

You don’t have to buy an official standing desk to reap the benefits when planning a home office. “The least expensive way would be to take a laptop and place it up high on a built-in high counter using a compact wireless keyboard and mouse,” Loesing says.

Even if you don’t have a standing desk—makeshift or otherwise—you can still incorporate movement and circulation into your workday. Set a timer to remind you to stand up and stretch every 20 minutes, Loesing suggests.

For an even better boost, combine this with a popular guideline known as the 20-20-20 rule. Every 20 minutes, give your eyes a break by looking out a window at something at least 20 feet away, and do so for at least 20 seconds.

Don’t forget the ambience and accessories

Your desk, chair and computer are the major players when you’re setting up a home office for remote work. But there are a few additional items to consider, like lighting, plants and sound.

Setting up a home office for remote work should include some thinking around ambiance, like lighting, plants and sound.

Your overhead light fixture likely isn’t enough, as it will create shadows and can be too weak by the time it reaches your workspace, Varone says. She recommends investing in a table lamp that creates a wider spread of light in your area. Pick one with a translucent shade that will softly diffuse the light and make it easier on your eyes.

As you’re planning your home office, Varone also recommends incorporating a potted plant or flower into your workspace. Not only can it help purify the air and boost your mood, a natural element can contribute to a restful atmosphere.

Working from home means working with home noises—especially if you’re in an environment with roommates, a partner or little ones. To keep the noise down, consider noise-canceling headphones for a quieter workspace and clearer meetings. Other budget-friendly options? Try placing a towel under the door to block out noise from other rooms, Loesing says. Consider curtains instead of blinds, since they’re better at blocking out sound. Even pillows or large cushions can help reduce noise, she adds.

After you’ve taken care of the essentials and if you have the space and money, think about adding a reading chair to your home office. You can use this as a space to review documents or do some deep thinking, Varone says. It can be a welcome respite from your desk while keeping you in the office area, she adds.

When planning a home office, think about adding a reading chair to your space.

One last tip? Add a personal touch, whether it’s a framed family photo or a souvenir from your travels. It’s your home office, after all. Let your personality shine.

Set up a home office for remote work that allows you to thrive

Now that you know how to create a home office on a budget, you’re ready to make a space that works well for you. Whether you’re an experienced remote worker or a newbie, you can apply these expert tips to set up an office that’s functional and keeps you motivated day in and day out.

Ready to break in your new home office? Keep that motivation going by learning how to increase your earning potential this year.

The post Planning a Home Office? Check Out These Budget-Friendly Tips appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

The Magical Third Paycheck: 5 Budgeting Hacks If You’re Paid Biweekly

If you get paid every two weeks, you’ve probably noticed extra money coming your way certain months. Maybe you even thought your company’s payroll made a mistake! But it’s no mistake. You get two magical months like this a year: when you suddenly have a third paycheck and—the best part is—your monthly bills stay the same. Yes, it’s appropriate to jump for joy—provided you have a plan for that extra income.

Why does this happen in the first place? If you’re paid biweekly, you get 26 paychecks throughout the 52-week year. That means two months out of the year, you end up getting three paychecks instead of your regular two.

Those two extra paychecks can go a long way. But without a plan in mind, they can also disappear. Fast. The first budgeting trick to saving two paychecks is to find out when they will hit your account. Grab a calendar and write down your paydays for every month in a given year and highlight the two extras. Maybe even put calendar reminders in your phone so you can track when the additional funds will hit your account. The extra paychecks will fall on different days every year, so tracking them in advance is key.

Samuel Deane, a founding partner of New York City-based wealth management firm Deane Financial, says there isn’t one correct way to budget with an extra paycheck, but that it should depend on your personal situation and financial goals. You could decide to give yourself some extra room in your budget throughout the year, for example, or use the extra money for something specific.

There are a few different ways to budget with an extra paycheck.

How can I budget for an extra paycheck? Consider these 5 budgeting hacks if you’re paid biweekly:

1. Pay down (mainly) high-interest debt

Once you’re done jumping for joy at the realization of the third paycheck, consider how your budget with an extra paycheck could help you pay down debt. “The first thing I usually tell my clients is to get rid of high-rate debt, which is usually credit card debt,” Deane says.

Before paying off debt with your new budget with an extra paycheck, make a list of all of your debts organized by balance and annual percentage rate (APR). Paying off the debt with the highest APR could save you the most money because you’re paying the most to carry a balance. Paying down a few low-APR, low-balance debts can also help you gain momentum and bring other financial benefits. For instance, if you owe close to your credit limit on a credit card, the high credit utilization—or card balance to credit limit ratio—could negatively impact your credit score.

If your budget with an extra paycheck includes debt repayment, you’ll start to owe less and have less interest accruing each month, freeing up even more cash from subsequent paychecks.

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“The first thing I usually tell my clients is to get rid of high-rate debt, which is usually credit card debt.”

– Samuel Deane, a founding partner of wealth management firm Deane Financial

2. Build an emergency fund

Paying down debt isn’t the only way to budget with an extra paycheck. “Taking a look at whether you have a sufficient emergency fund is pretty important,” says Dan Stous, director of financial planning at Flagstone Financial Management.

An emergency fund of three to six months of your regular expenses can help you weather financial setbacks, such as a lost job or medical emergency, without having to take on new debt. Keeping these funds separate from your regular checking and savings accounts can help you keep them earmarked for the unexpected (and reduce the temptation to dip into them for non-emergency expenses). Places to keep your emergency fund include a high-yield savings account, certificate of deposit or money market account.

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If creating an emergency fund or adding to an existing one is on your to-do list, a budgeting trick to save two paychecks is to automatically transfer your extra paychecks into your emergency fund account.

3. Save for a big goal

If you want to save for a goal like a new car or home, or contribute to tax-advantaged retirement accounts, contributing two full paychecks out of 26 can be a good start. “If a client is debt-free and doing well, they might be able to focus on other goals,” Deane says. If you’ve got a financial goal in mind, a budgeting hack if you’re paid biweekly is to transfer your two extra paychecks from your checking account to a savings or retirement account right away.

Using your extra paycheck to save for a goal, like a new home or new car, is a smart budgeting hack if you're paid biweekly.

If you have a 401(k) through an employer and already contribute enough to get your maximum annual match, Deane says you may want to consider a Roth IRA. A Roth IRA is for retirement, but it also allows first-time homebuyers who have held their account for at least five years to withdraw up to $10,000 to buy a home, Deane says. Your budget with an extra paycheck could then go to either major goal.

Even loftier, “you could put aside money to start a business,” Deane says. If you plan on starting a business someday you could put away the paychecks annually and let those savings build as start-up capital.

4. Get ahead on bills

If you already have an emergency fund, are currently debt-free and are making good progress on your savings goals, try this budgeting hack if you’re paid biweekly and get a third paycheck: Pay certain monthly bills ahead of time.

“If you have the ability to prepay some of your bills, it can ease anxiety in the coming months,” Deane says.

Before using this budgeting hack if you’re paid biweekly, check with your providers to confirm that you will not be met with a prepayment penalty, and get up to speed on any prepayment limitations. Some providers may even offer a discount or incentive if you pay something like a car insurance bill all at once. You could also explore whether or not prepaying your bills makes sense for utilities, your cellphone or rent.

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5. Fund much-needed rewards

If you’re looking for budgeting hacks if you’re paid biweekly, consider that managing money isn’t only about dollars and cents. Emotions often play an important part in personal finance, and they’re often the root cause of people’s decisions. Accepting this fact could be an important part of successfully managing your money.

“From an emotional and behavioral standpoint, people should reward themselves for being responsible,” Stous says. “Basically, treat yourself.”

Perhaps you need a vacation from the daily grind, want to enrich or educate yourself or your family or simply want to get a date night at your favorite restaurant on the calendar. A budgeting trick to save two paychecks could be supplemented with some spending on yourself.

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“If you have an extra paycheck and a debt reduction goal, then maybe you apply the whole thing toward that goal. On the other hand, maybe you have a goal to retire in 10 years and you’re off track. Then, it’d be wise to put that money, or at least a portion of it, toward that goal.”

– Dan Stous, director of financial planning at Flagstone Financial Management

There’s no one-size-fits-all budgeting trick to save two paychecks

When you’re deciding how to budget with an extra paycheck, you might find yourself going back and forth between options.

“If you have an extra paycheck and a debt-reduction goal, then maybe you apply the whole thing toward that goal,” Stous says. “On the other hand, maybe you have a goal to retire in 10 years and you’re off track. Then, it’d be wise to put that money, or at least a portion of it, toward that goal.”

Even though budgeting solutions are not the same for everyone, being disciplined and proactive about the savings opportunity of a third paycheck can help you form a strong foundation for your financial future.

The post The Magical Third Paycheck: 5 Budgeting Hacks If You’re Paid Biweekly appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

9 Things I Wish I Had Known About Owning My First Home (Before I Bought It)

sturti/iStock

Years before I ever dreamed of homeownership for myself, I was an HGTV connoisseur. In college, I double majored in “Property Virgins” and “House Hunters” and spent hours glued to the TV with my roommate, ogling other people’s granite countertops.

Fast forward nearly a decade, and the time had arrived for me to purchase my own home. (No granite countertops here—my house was more like the “before” scene in an episode of “Fixer Upper”).

Not surprisingly, TV homeownership didn’t prepare me for the real thing. There are lots of lessons I’ve had to learn the hard way.

If you’re gearing up for your own journey into homeownership, turn off the TV and gather ’round. I’ll fill you in on a few things I wish I had known beforehand, and a few surprises (some happy, some frustrating) that I encountered along the way.

1. A beautiful yard takes work

That lawn’s not going ti cut itself

mustafagull/iStock

I never met a succulent that I didn’t kill. Even my fake plants are looking a little wilted right now. But even though I don’t have a green thumb, landscaping and yard maintenance are forever on my to-do list.

Each spring, I spray Roundup with impunity, attempting (and failing) to conquer the weeds. My husband handles mowing and edging.

I’ve slowly started to learn which plants can endure abuse, neglect, and a volatile Midwestern climate. I still have a long way to go in my landscaping journey, but all this work has given me a new appreciation for other people’s lush, beautiful lawns.

When you’re house hunting, keep in mind that those beautiful lawns you see—and that outdoor space you covet—come at a steep price. Either your time and frustration, or a hefty bill for professional landscapers, will be necessary to keep things presentable.

2. You might get a bill for neighborhood improvements

Your property taxes should pay for every improvement to the neighborhood, right? Not necessarily.

When my neighbors came together to petition the city for a speed bump on our busy street, the cost was passed on to us homeowners. It wasn’t covered by property taxes, so we got a bill in the mail a few months later. Surprise!

When you’re preparing to buy a house, make sure you budget for homeownership expenses—not just repair and HOA costs, but those pesky fees that crop up when you least expect them.

3. Brush/trash removal? It works differently in every city

You might not be able to just leave your leaves on the curb…

Instants/iStock

As a kid, I spent many fall weekends scooping leaves into yard waste bags that we left on the curb for pickup. But when I became a homeowner, I realized that my early brush with brush removal was unique to the suburb where I grew up. Every city handles it differently, if the city handles it at all.

In Milwaukee, where I live, homeowners can put leaves on the curb for pickup on designated days. For big branches, you need to request a pickup, or potentially dispose of them yourself. Check with your city to find the ordinances and regulations where you live.

4. You’ll want to clean (or hire someone to clean) your nasty windows

Window maintenance was never on my radar as a renter, probably because I never had more than a few windows in an apartment. But then I became the proud owner of many, many windows—and all of them were coated in a thick film of gunk after years of neglect.

After we moved in, I started to tackle the cleaning on my own. But I quickly realized I was getting nowhere fast, and there was no way I could safely clean the exterior windows up in the finished attic.

So, I swallowed my pride and hired window washers. It was some of the best money I’ve ever spent.

5. You may feel a sudden urge to stock up on seasonal decorations

I never looked twice at a $50 wreath or decorative gourd before becoming a homeowner. Now, I have a burgeoning collection of lawn ornaments in the shape of snowmen and spooky cats. Sometimes I don’t even know who I am anymore.

6. You’ll need to create a budget for Halloween candy

Stock up…

leekris/iStock

At least I did in my Halloween-loving neighborhood, where the trick-or-treaters come out in droves.

I spent upward of $100 on candy my first year as a homeowner, and most of it was purchased in a panic at the Dollar Store after I noticed that our supply was dangerously low just halfway through the evening.

Now, I stock up in advance and shop with coupons to save a few bucks.

7. DIY renovation is equally rewarding and soul-crushing

Maybe just call someone next time…

neirfy/iStock

For the first few months after we closed on our house, my husband and I spent every free hour after work and on the weekends ripping out carpeting, pulling nails one by one from the hardwood floors, and scrubbing away at generations’ worth of grime in the bathrooms and kitchen. It was some seriously sick stuff.

Being frugal and ambitious means we can accomplish a lot on a small budget. But acting as our own general contractors became a full-time job on top of both of our full-time jobs.

Simple pleasures like “having a social life” or “Friday night with Netflix” became distant memories. It’s easy now to say it was all worth it, but at the time, I daydreamed about winning the lottery and hiring a team of pros to handle our rehab.

____________

Watch: Here’s How Low You Can Go in Making an Offer on a Home

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8. My impulse to check real estate listings lingered for a while

When I started house hunting, I obsessively searched for new home listings every day, poring over MLS descriptions and swiping through photos. Reaching for my phone to refresh the realtor.com app became muscle memory.

But after we closed on our house, my impulse to follow the market didn’t disappear overnight. Even though I was a homeowner, I also had a phantom limb where “checking the real estate listings” used to be.

A friend of mine put it best when she wrote about the sensation of loss she experienced when she “no longer had an excuse to occupy [her] free time with these real estate apps.” It’s surprisingly challenging to turn off your home-buying brain after months of being on high alert.

9. You’ll never want to go back to sharing walls

I like my neighbors. I like them even more because, for the most part, I can’t hear them. Gone are the days of people above me making bowling sounds late at night.

Now, I enjoy the sweet, sweet silence of detached living—no adjacent neighbors blasting music or loudly quarreling. All the yard work in the world is worth it for this level of quiet.

The post 9 Things I Wish I Had Known About Owning My First Home (Before I Bought It) appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Home Buyer’s Guide: How to Purchase a Property, From Start to Finish [Free Download]

Purchasing a home is both exciting and a major milestone in your life, so you’ll want to be prepared for what to expect to avoid a stressful process. Having an in-depth look at the buyer’s journey can help you make informed and confident decisions.

From finding a real estate agent, negotiating offers to getting your keys on closing day, we’ve outlined all the steps of a home buyer’s journey in our free Buyer’s Guide, which you can download here.

The Buyer’s Guide will cover the buyer’s timeline from meeting an agent to preparing for closing day. We’ve outlined the 8 steps in a home buyer’s journey below.

1. Working With An Agent

Every city is filled with thousands of agents, but not all are equal. We believe it is important to choose an agent that you feel confident with. Before you commit to working with an agent, make sure you have a good understanding of the knowledge and experience they offer. It’s important that you ask your questions before making the decision to work with them.

2. Financing Your Purchase

Before you set a budget and start looking for a home, you’ll have to understand what costs to expect when purchasing a home. Here are some of the major costs involved:

  • Deposits
  • Down payments
  • Mortgage insurance
  • Closing costs

You’ll also want to calculate a rough estimate of the down payment that you will be expected to pay. Depending on the price of your home, your minimum down payment can range from 5% to 20%. If you’re interested in learning more about how to finance your home, you can get our free Financing Your Purchase guide here.

3. Searching For A Home

An important part of searching for a home is understanding how the home will fit with your needs and your lifestyle. You’ll want to consider home ownership as well as different types of properties and features. 

Types of Home Ownership

  • Freehold Ownership
    • You purchase the home and directly own the lot of land it sits on
  • Condominium Ownership
    • For condos, you own specific parts of one building: titled ownership of your unit, along with shared ownership in the condo corporation that owns the common spaces and amenities
  • Co-Op Ownership
    • You own an exact portion of the building as a whole and also have exclusive use of your unit

Types of Properties

  • Detached houses
  • Semi-detached houses
  • Attached houses
  • Condos and apartments
  • Multi-unit

Tip: Depending on your budget and desired location, you may need to be flexible to find a home that meets your needs. By being willing to trade some features for others, you’ll have more options to choose from.

4. Negotiating An Offer

When you are making an offer to purchase a home, the purchase agreement should include the essential components listed below. Your agent can help put together an offer that is compelling, while safeguarding your interests and puts you in a competitive position to secure your new home.

You’ll also have the opportunity to choose the conditions that you’ll want in your offer. Some of these may include a home inspection or a status certificate review.

5. Financial Due Diligence

Whenever you make an offer on a house, you need to provide a deposit to secure the offer. The deposit is in the form of a certified cheque, bank draft, or wire transfer; it’s held in trust by the selling brokerage and is applied towards your down payment if your offer is successful.

There are two types of deposits:

  • Upon acceptance
    • The deposit is provided within 24 hours of the seller choosing your offer
  • Herewith
    • The deposit is provided when the offer is made

6. Property Due Diligence

To firm up a deal or educate yourself more on the state of the property, you’ll likely want to have a home inspection if you’re purchasing a house. If you’re purchasing a condo, then your lawyer will review the building’s status certificate.

Home Inspection

A home inspector will assess elements of the home such as the walls, windows, plumbing, heating and roof to judge the condition of the home. This process is non-invasive and is essential to help provide buyers with a good idea of the home’s current condition and the confidence of putting in an offer. 

Tip: The home inspector will provide a summary of suggested work along with a minimum budget estimate for the repairs needed. 

Status Certificates

If you’re purchasing a condominium, you’ll need to obtain a status certificate from the condo board or management for your lawyer’s review. This document will include valuable information about the condo’s budget, legal issues, reserve fund, maintenance fees and future fees increases – and the lawyer can help identify potential red flags

7. Preparing For Closing

Before the big day, you’ll want to keep a checklist of what to do ahead of time. Some of these include:

  • Review your contract
  • Complete a final walkthrough of the home
  • Purchase home insurance
  • Meet with your lawyer
  • Know how much cash you’ll need
  • Secure cash required for closing

8. Closing Day

Closing Day is when you’ll finally get the keys to your new home! In addition to bringing the cash required for closing, you’ll have to sign a few more documents which will include:

  • Mortgage loan
  • Title transfer
  • Statement of adjustments
  • Tax certificates

For the full details on the home buyer’s journey including examples, advice, pictures and sample calculations, download a copy of our free Buyer’s Guide here.

The post Home Buyer’s Guide: How to Purchase a Property, From Start to Finish [Free Download] appeared first on Zoocasa Blog.

Source: zoocasa.com

How Much Cash Do You Really Need to Buy a Home?

Are you ready to buy a home? You’re not alone—in 2019, more than five million people bought an existing home. And that doesn’t even include the number of people who purchased new construction.

The point is, the housing market is always bustling and busy. And if it’s your first time buying a home, it might seem a bit daunting. You might have a couple of questions—how much money do you need to buy a home? And how can you even get those funds?

Overwhelmed? Don’t be. We’re here to guide you towards saving up, so hopefully you’ll be able to afford your dream home. Keep reading to learn more!

How Much Do You Need for a Down Payment?

Let’s start with one of the first payments you might have to make—a down payment. When someone takes out a mortgage loan, they’ll put down a percentage of the home’s price. That’s the down payment.

You might’ve heard that down payments are about 20% of the total cost of your new home. That can be true, but it really just depends on your mortgage. There are mortgage options that require little to no down payment, and how much you need often depends on your eligibility for different programs. Here are some different loan options:

1. USDA Mortgage

The USDA guarantees mortgages for eligible buyers primarily in rural areas. These loans do not have down payment requirements. To qualify for a USDA loan:

  • The property must meet eligibility requirements as to where it’s located.
  • Your household must fall within the income requirements, which depend on your state.
  • You must meet credit, income and other requirements of the lender, though they may be less rigorous than loans not backed by a government entity.

2. Conventional Mortgage

Conventional mortgages are financed through traditional lenders and not through a government entity. Depending on your credit and other factors, you may not need to put down 20% on such loans. Some lenders may allow as little as a five percent down payment, for example. But you’ll have to pay private mortgage insurance (PMI) if you put down less than 20%.

3. FHA Mortgage

FHA loans, like USDA loans, are partially guaranteed by a government agency. In this case, it’s the Federal Housing Administration (FHA). A down payment on these loans may be as low as 3.5%. Requirements for an FHA loan can include:

  • You’re purchasing a primary home.
  • The home in question meets certain requirements related to value and cost.
  • A debt-to-income ratio between 43% and 56.9%.
  • You meet other credit requirements, though these may not be as strict as with conventional loans.

How much do you need to make to buy a $200K house?

Given the above information, here’s what your down payment might look like on a home worth $200,000:

  • USDA loan: Potentially $0
  • Conventional loan: From $10,000 to $40,000
  • FHA Loan: As low as $7,000

These are just some options for mortgages with low down payment requirements. Working with a broker or shopping around online can help you find the right mortgage. In addition to the down payment, you do need to ensure that you can afford the mortgage and make the monthly payments.

Don’t Forget the Cash You’ll Need for Closing

Closing costs are typically between three and six percent of your mortgage’s principal. That’s how much you’re borrowing, so the less you put down, the more your closing costs might be.

Here’s a range of closing costs assuming a cost of three percent of the low range home purchase, when buying with less than 20% down:

  • For a home purchase between $500,000 and $600,000, you’ll need at least $15,000 for closing costs
  • Between $300,000 and $500,000, at least $9,000 for closing costs
  • Between $150,000 and $300,000, at least $4,500 for closing costs

Where Can You Get the Money to Buy a Home?

These numbers should give you an idea of how much cash you’ll need for a home purchase. Acceptable sources for procuring cash to close on a house can be one or any of the following:

  • Stocks
  • Bonds
  • IRA
  • 401(k)
  • Checking/ savings
  • A money market account
  • Retirement account
  • Gift money

The key here is that the money needs to be documented. You have to be able to prove you had it and didn’t borrow it simply for the purpose of making your down payment or covering closing costs.

Don’t have cash available from any of the above-mentioned sources? There are other sources you can use as long as they can be paper-trailed, such as your tax refund or a security deposit refund on your current home rental.

Plan for Other Important Costs

While down payments and closing costs are the biggest out-of-pocket expenses involved in buying a home with a mortgage, you may need to cover other costs. There might be some additional home buying and moving-in costs. Those could include inspections, the cost of any necessary repairs not covered by the sellers and moving fees.

Are You Ready to Buy a Home?

Saving up the right amount of money is just one step in buying a home. You must also ensure your credit score is in order. Lenders look at different credit scores when they consider someone for a mortgage. Sign up for ExtraCredit to get a look at 28 of your FICO Scores to understand how lenders might see you as a borrower. Once you check your scores, you can decide whether you need to build your score or start shopping for your mortgage.

Sign up for ExtraCredit today!

The post How Much Cash Do You Really Need to Buy a Home? appeared first on Credit.com.

Source: credit.com

15-Year vs. 30-Year Mortgages: Which is Better?

Once you decide to become a homeowner, it’s likely that you will need to take out a mortgage to purchase your new home. While the conclusion that you need a mortgage to finance your home is usually easy to arrive at, deciding which one is right for you can be overwhelming. One of the many decisions a prospective homebuyer must make is choosing between a 15-year versus 30-year mortgage.

From the names alone, it’s hard to tell which one is the better option. Under ideal circumstances, a 15-year mortgage mathematically makes sense as the better option. However, the path to homeownership is often far from ideal (and who are we kidding, under ideal circumstances we’d all have large sums of money to purchase a house in cash). So the better question for homebuyers to ask is which one is best for you?

To help you make the most informed financial decisions, we detail the differences between the 15-year and 30-year mortgage, the pros and cons of each, and options for which one is better based on your financial priorities.

The Difference Between 15-Year Vs. 30-Year Mortgages

The main difference between a 15-year and 30-year mortgage is the amount of time in which you promise to repay your loan, also known as the loan term.

The loan term of a mortgage has the ability to affect other aspects of your mortgage like interest rates and monthly payments. Loan terms come in a variety of lengths such as 10, 15, 20, and 30 years, but we’re discussing the two most common options here.

The Difference Between 15-Year Vs. 30-Year Mortgages

What Is a 15-Year Mortgage?

A 15-year mortgage is a mortgage that’s meant to be paid in 15 years. This shorter loan term means that amortization, otherwise known as the gradual repayment of your loan, happens more quickly than other loan terms.

What Is a 30-Year Mortgage?

On the other hand, a 30-year mortgage is repaid in 30 years. This longer loan term means that amortization happens more slowly.

Pros and Cons of a 15-Year Mortgage

The shorter loan term of a 15-year mortgage means more money saved over time, but sacrifices affordability with higher monthly payments.

Pros

  • Lower interest rates (often by a full percentage point!)
  • Less money paid in interest over time

Cons

  • Higher monthly payments
  • Less affordability and flexibility

Pros and Cons of a 30-Year Mortgage

As the mortgage term chosen by the majority of American homebuyers, the longer 30-year loan term has the advantage of affordable monthly payments, but comes at the cost of more money paid over time in interest.

Pros

  • Lower monthly payments
  • More affordable and flexible

Cons

  • Higher interest rates
  • More money paid in interest over time

15-Year Mortgage

30-Year Mortgage

Pros

• Lower interest rates
• Less money paid in interest over time
• Lower monthly payments
• More affordable and flexible

Cons

• Higher monthly payments
• Less affordability and flexibility
• Higher interest rates
• More money paid in interest over time

Which Is Better For You?

Now with what you know about the pros and cons of each loan term, use that knowledge to match your financial priorities with the mortgage that is best for you.

Best to Save Money Over Time: 15-Year Mortgage

The 15-year mortgage may be best for those who wish to spend less on interest, have a generous income, and also have a reliable amount in savings. With a 15-year mortgage, your income would need to be enough to cover higher monthly mortgage payments among other living expenses, and ample savings are important to serve as a buffer in case of emergency.

Best for Monthly Affordability: 30-Year Mortgage

A 30-year mortgage may be best if you’re seeking stable and affordable monthly payments or wish for more flexibility in saving and spending your money over time. The longer loan term may also be the better option if you plan on purchasing property you couldn’t normally afford to repay in just 15 years.

Best of Both: 30-Year Mortgage with Extra Payments

Want the best of both worlds? A good option to save on interest and have affordable monthly payments is to opt for a 30-year mortgage but make extra payments. You can still have the goal of paying off your mortgage in 15 or 20 years time on a 30-year mortgage, but this option can be more forgiving if life happens and you don’t meet that goal. Before going this route, make sure to ask your lender about any prepayment penalties that may make interest savings from early payments obsolete.

Best of Both- 30-Year Mortgage with Extra Payments

As a prospective homebuyer, it’s important that you set yourself up for financial success. Fine-tuning your personal budget and diligently saving and paying off debt help prepare you to take the next steps toward buying a new home. Doing your research and learning about mortgages also helps you make decisions in your best interest.

When picking a mortgage, always keep in mind what is financially realistic for you. If that means forgoing better savings on interest in the name of affordability, then remember that path still leads to homeownership. Try out these budget templates for your home or monthly expenses to help keep you on a good path to achieving your goals.

Sources: Consumer Financial Protection Bureau

The post 15-Year vs. 30-Year Mortgages: Which is Better? appeared first on MintLife Blog.

Source: mint.intuit.com

Popular Housing Markets During the Pandemic

There’s something weird happening with the real estate markets today. Normally in a recession, demand for rentals goes up while demand for houses goes down. But if there’s anything 2020 has taught us, it’s that everything is turned on its head right now. 

Instead, we’re seeing an interesting trend: despite the ongoing pandemic, home-buying is experiencing higher demand now than they have been since 1999, according to the National Association of RealtorsⓇ (NAR). If you’ve been hoping to buy a home soon, you’re probably already aware of this weird trend, and excited. But is it the same story everywhere? And is a pandemic really the right time to buy? 

How the Pandemic is Changing Homeownership

This pandemic is different from any other in history in that many people — especially some of the highest-paid workers — aren’t being hit as hard as people who rely on their manual labor for income. This, coupled with an ultra-low mortgage rate environment and a new lifestyle that’s not fit for a cramped apartment, is creating the perfect storm of high-dollar homebuyers. 

“I didn’t want to pay someone else’s mortgage to have three roommates,” says Amy Klegarth, a genomics specialist who recently purchased a home in White Center, a suburb of Seattle where she was formerly renting. “I moved because I could afford to get a house with a large yard here for my goats, Taco and Piper.” 

Whether you have goat kids or human kids (or even no kids), you’re not the only one looking for a new home in a roomier locale. According to the NAR report, home sales in suburban areas went up 7% compared to just before the pandemic started. In some markets, it’s not hard to understand why people are moving out. 

Where Are People Going?

Apartments are small everywhere, but they’re not all the same price. For example, homes in cities tend to be 300 square feet smaller than their suburban counterparts. Some of the hottest home-buying markets right now are in areas where nearby rents are already too high, often clustered around tech and finance hubs that attract high-paid workers. After all, if you can’t go into the office and all of the normal city attractions are shut down, what’s the point of paying those high rental costs?

According to a December 2020 Zumper report, the top five most expensive rental markets in the U.S. are San Francisco, New York City, Boston, San Jose, and Oakland. But if you’re ready to buy a home during the pandemic, there are nearby cheaper markets to consider.

If You Rent in San Francisco,  San Jose, and Oakland, CA

Alternative home-buying market: San Diego, Sacramento 

  • Average rent: San Francisco, $2,700, San Jose, $2,090; Oakland; $2,000
  • Average home value (as of writing): San Diego ($675,496) and Sacramento ($370,271)
  • Estimated mortgage payment with 20% down: San Diego ($2,255) and Sacramento ($1,236)

Big California cities are the quintessential meccas for tech workers, and that’s often exactly who’s booking it out of these high-priced areas right now. Gay Cororaton, Director of Housing and Commercial Research for the National Association of Realtors (NAR), offers two suggestions for San Francisco and other similar cities in California. 

San Diego

First, is the San Diego-metro area, which has a lot to offer people who are used to big-city living but don’t want the big-city prices. An added bonus: your odds of staying employed as a tech worker might be even higher in this city. 

“Professional tech services jobs make up 18% of the total payroll employment, which is actually a higher fraction than San Jose (15.5%) and San Francisco (9.3%),” says Cororaton.

Sacramento

If you’re willing to go inland, you can find even cheaper prices yet in Sacramento. “Tech jobs have been growing, and account for 7% of the workforce,” says Cororaton. “Still not as techie as San Jose, San Francisco, or San Diego, but tech jobs are moving there where housing is more affordable. It’s also just 2 hours away from Lake Tahoe.”

If You Rent in New York, NY

Alternative home-buying market: New Rochelle, Yonkers, Nassau, Newark, Jersey City

  • Average rent: $2,470
  • Average home value (as of writing): New Rochelle ($652,995), Yonkers ($549,387), Nassau ($585,741), Newark ($320,303), or Jersey City ($541,271)
  • Estimated mortgage payment with 20% down: New Rochelle ($2,180), Yonkers ($1,834), Nassau ($1,955), Newark ($1,069), or Jersey City ($1,807)

Living in New York City, it might seem like you don’t have any good options. But the good news is you do — lots of them, in fact. They still might be more expensive than the average home price across the U.S., but these alternative markets are still a lot more affordable than within, say, Manhattan. 

New Rochelle and Yonkers

Both New Rochelle and Yonkers are about an hour’s drive from the heart of New York City, says Corcoran. If you ride by train, it’s a half hour. Both New Rochelle and Yonkers have been stepping up their appeal in recent years to attract millennials who can’t afford city-living anymore (or don’t want to be “house poor”), so you’ll be in good company. 

Nassau

“NAR ranked Nassau as one of the top places to work from home in the state of New York because it has already a large population of workers in professional and business services and has good broadband access,” says Cororaton. If you have ideas about moving to Nassau you’ll need to move quickly. Home sales are up by 60% this year compared to pre-pandemic times. 

Newark or Jersey City

If you don’t mind moving to a different state (even if it is a neighbor), you can find even lower real estate prices in New Jersey. This might be a good option if you only need to ride back into the city on occasion because while the PATH train is well-developed, it’s a bit longer of a ride, especially if you live further out in New Jersey. 

If You Rent in Boston, MA

Alternative home-buying market: Quincy, Framingham, Worcester

  • Average rent: $2,150
  • Average home value (as of writing): Quincy ($517,135), Framingham ($460,584), or Worcester ($284,936)
  • Estimated mortgage payment with 20% down: Quincy ($1,726), Framingham ($1,538), or Worcester ($951)

Boston is another elite coastal market, but unlike New York, there’s still plenty of space if you head south or even inland. In particular, Quincy and Framingam still offer plenty of deals for new buyers.

Quincy

If you like your suburbs a bit more on the urban side, consider Quincy. Although it’s technically outside of the city, it’s also not so isolated that you’ll feel like you’re missing out on the best parts of Boston-living. You’ll be in good company too, as there are plenty of other folks living here who want to avoid the high real estate prices within Boston itself.

Framingham

Framingham is undergoing an active revitalization right now in an effort to attract more people to its community. As such, you’ll be welcome in this town that’s only a 30-minute drive from Boston.

Worcester

“Now, if you can work from home, consider Worcester,” says Cororaton. “It’s an hour away from Boston which is not too bad if you only have to go to the Boston office, say, twice a week.” Worcester (pronounced “wuh-ster”) is also a great place for a midday break if you work from home, with over 60 city parks to choose from for a stroll.

Renting Market(s) Average Rent for 1-Bedroom Apartment Housing Market Options & Avg. Monthly Mortgage*
San Francisco, CASan Jose, CAOakland, CA $2,700 San Diego ($2,255) Sacramento ($1,236)
New York, NY $2,470 New Rochelle ($2,180) Yonkers ($1,834)Nassau ($1,955)Newark ($1,069)Jersey City ($1,807)
Boston, MA $2,150 Quincy ($1,726)Framingham ($1,538)Worcester ($951)

*Average home mortgage estimates based on a 20% down payment.

Should You Buy a House During a Pandemic?

There’s no right or wrong answer here, but it’s a good idea to consider your long-term housing needs versus just what’ll get you through the next few months. 

For example, just about everyone would enjoy some more room in their homes to stretch right now. But if you’re the type of person who prefers a night on the town, you might be miserable in a rural area by the time things get back to normal. But if you’ve always dreamed of a big vegetable garden or yard for the family dog, now could be the right time to launch those plans. 

Another factor to consider is job security. And remember that even if you’re permanently working from home today — and not everyone has this ability — living further from the city could limit your future opportunities if a job requires you to be on-site in the city.

Finally, consider this: most homes in outlying areas weren’t built with the pandemic in mind. For example, “… open floor plans were popular, pre-pandemic,” says Cororaton. “If the home for sale has an open floor plan, you’d have to imagine how to reconfigure the space and do some remodeling to create that work or school area.” 

Here are some other things to look for:

  • Outdoor space
  • Area for homeschooling
  • Broadband internet access
  • Proximity to transport routes
  • Office for working from home

Is It More Affordable to Buy or Rent?

There aren’t any hard-and-fast rules when it comes to whether it’s cheaper to rent or buy. Each of these choices has associated costs. To rent, you’ll need to pay for your base rent, pet fees and rent, parking permits, deposits, renters insurance, and more. To buy, you’ll have an even bigger list, including property taxes, maintenance and upgrades, HOA fees, homeowners insurance, closing costs, higher utility bills, and on.

Each of these factors has the potential to tip the balance in favor of buying or renting. That’s why it makes sense to use a buy vs. rent calculator that can track all of these moving targets and estimate which one is better based on your financial situation and the choices available to you. 

In general, though, most experts advise keeping your housing costs to below 30 percent of your take-home pay when setting up your budget. The lower, the better — then, you’ll have even more money left over to save for retirement, your kid’s college education, and even to pay your mortgage off early. 

The post Popular Housing Markets During the Pandemic appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

What Is New-House Smell? A Reality Check on the Risks, and How To Get Rid of It

new house smellMaría Garrido / EyeEm / Getty Images

While most of us are familiar with new-car smell—that distinct scent of a brand-new automobile—home buyers might have caught a whiff of another scent entirely during their home-shopping spree: new-house smell.

What exactly is new-house smell? Also known as new-construction smell, it’s essentially a combination of smells given off by the many materials that go into building a house—things like fresh paint, carpet, wood, and adhesives. If there’s any new furniture in the home, that could be contributing to the smell as well.

But is new-house smell unhealthy to breathe in, day after day? Here’s a closer look at what new-house smell is made of, and how to get rid of it, too.

What is new-house smell?

Before we dive deep into new-house smell, let’s take a step back—way back—and look at what causes anything to smell in the first place.

Bill Carroll Jr., an adjunct professor of chemistry at Indiana University, says all smells come from molecules in the air that your nose can detect. The molecules must evaporate to get into the air, and the more likely they are to evaporate, the more volatile they are and the easier they are to inhale and detect as odors.

“If you can smell it, it’s because of a molecule in the air,” Carroll says. “The fact that it’s in the air means that it is a volatile compound at least to some extent.”

As scary as “volatile” sounds, it doesn’t necessarily mean a substance is dangerous or explosive. Carroll says it simply means that something can easily evaporate into the atmosphere, thus releasing an odor. For example, he says metals aren’t very volatile, which is why you probably don’t smell much (hopefully) if you sniff your stainless-steel refrigerator. Other materials like paints, adhesives, and plastics, however, are more highly volatile.

Are VOCs dangerous?

While new-house smells aren’t necessarily dangerous, there is some concern about certain types of volatile organic compounds, or VOCs, that exist in some building materials (e.g., paint, carpet, and furniture). Some have been linked to health issues, including cancer and central nervous system damage in people (e.g., construction workers who don’t wear face masks) exposed to high quantities of such materials.

“When you talk about VOCs that raise health concerns, that goes more to a substance’s inherent toxicity or reactivity,” Carroll says. “It’s the difference between smelling a banana and smelling paint stripper, for example. They’re both volatile, but they have very different toxicities.”

“Regardless of odor, the ability of some of the VOCs emitted from any of [building] products and materials to cause health impacts or create other dangerous conditions varies greatly, depending on several factors,” according to the Environmental Protection Agency. “These factors may include the type and amount of VOCs emitted, the toxicity of the individual and combined VOCs, the ventilation rate in the space, the type and amount of other materials in the space, occupant level of exposure and length of time exposed, and the health of the exposed occupants.”

However, this is definitely not to say that a new-house smell will make you sick.

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Watch: Get Smoker’s Smell Out of Your House for Good—Here’s How

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The good news is that because of concerns raised over certain dangerous VOCs in the past 40 to 50 years, there’s a been a strong movement to reduce them. Carroll says that’s most apparent in regard to paint. While oil-based paints used to emit high levels of VOCs and the odor would linger for a long time, today’s paints contain virtually no VOCs and their odor dissipates more quickly.

In general, that means new houses today have much less of a pronounced smell than they did a years ago—and are less hazardous. For the overwhelming majority of the population, the odor is at worst a nuisance.

To reduce any potential indoor air–related health impacts from VOCs, the EPA recommends using low-emitting products and building materials and increasing ventilation. The agency also offers further information on VOCs and indoor air auality.

How to get rid of new-house smell

“If you like new-house smell, that’s OK,” Carroll says. “If you don’t, it’s important to remember that the solution is dilution.”

He says for an empty house, that means opening the windows to air things out, and usually in a matter of days that new-house smell will disappear. Another solution is to “bake” a new home. Since some VOCs evaporate more quickly at higher heats, this technique has a homeowner turn up the heat in the unoccupied house for a few days while running fans to push them out the windows. Running exhaust fans and using an air purifier may speed things up, too.

Carroll says what’s more concerning than new-house smell, however, is what you bring into your place on your own.

“The greatest source of VOCs is the stuff you bring into your house,” Carroll says. Items such as furniture, cleaners, waxes, and fragrances expose people to far more VOCs over the course of a lifetime.

Know this: If you’re moving into a new home and get a whiff of that telltale new-house smell, it will eventually wear off, even if you do nothing. Promise.

The post What Is New-House Smell? A Reality Check on the Risks, and How To Get Rid of It appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com