Clutter Bug in Your Home? | Clutter Free Tips | Provided by HouseLogic

Do you constantly clash with the clutter bug in your home? Here are tips on how opposing clutter styles can live in peace.

If you live alone, you never must tolerate anyone’s clutter but your own. Add another human to the household, and you’re bound to butt heads over how and when stuff is stored, piled, and put away.  The Wall Street Journal feels your pain and recently hosted an online chat about clutter styles.

Writer Alina Dizik and psychologist Patty Ann Tublin advised readers — mostly women complaining about packrat husbands and boyfriends — how to navigate relationships between clutter bugs and neatniks.

Here are 5 tips we culled from the conversation:
1. Determine if arguments about clutter are really power struggles. Is the rift really about piles of paper or an attempt to acquire more control? If you can’t figure this out, consult a professional organizer or counselor.

2. To reduce stress in your home, designate “clutter free” and “clutter friendly” areas. Perhaps the guests-only living room is a No Clutter space, while a mudroom or small den can accommodate some clutter. Also, investigate unusual places to store clutter, like under the stairs, or these space-saving hacks.

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Who are The First Time Home Buyers?

 Here are the Latest Statistics from the National Association of Realtors. InfoGraphic by KCM

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Purchasing your first home can be a scary thing.
( I know... I did it too)

Buying a home is one of the biggest investments you will ever make. If you are a first-time home buyer, you may be wondering if it is even the right thing for you to do. Generally, there are a few good reasons to buy that you should consider.

Home ownership is an investment in your future. It is the American Dream. Owning your home gives you a sense of pride, stability and security.

Click here to learn more

If you need some help, information or have questions on how to get started, Feel free to contact me.

My motto is... "I will not Sell you a home.. I WILL help you find find a home you can afford and take care of all the details"

 All my Best,  Neal Paskvan- Baird Warner                      neal.paskvan@bairdwarner.com

NAR affordability index breaks new threshold | Housing Wire

 

The National Association of Realtors' affordability index broke the 200 mark for the first time ever, rising to   206.1 in January.

NAR President Moe Veissi said the breakthrough means a typical family has roughly double the income needed to purchase a median-priced home.

“For buyers who can qualify for a mortgage, now is a very good time to become a homeowner," he said.

The index is based on the relationship between median home price, median family income and average mortgage interest rate. A score of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced, existing single-family home.

Considering the likelihood that interest rates and home prices will change little in the near future, NAR projects its affordability index to remain at elevated levels throughout 2012.

What Does Warren Buffet Think About Buying A Home?

Warren Buffet is seen by many as the greatest investor of our time. When he speaks, people listen. Like anyone else in his position of influence, he is criticized by some for using his bullhorn to promote his own business agendas at times. That makes it very interesting when we occasionally learn of how he privately advises those closest to him. Learn what he told his secretary.

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In Real Estate, Keeping Current Matters!

 

There is too much misinformation being spread about today’s real estate market. Studies are being misinterpreted. Prominent names are being used to foster a point even if their quote is from years ago.

As an example, we want to look at a story published last week by The Fiscal Times titled The New American Dream: Rent, Don’t Buy. In the article, they claim:

“Call it the Big Selloff—America is headed toward a future in which fewer people own the spaces they call home… Those trends are just the beginning.”

We are not arguing that the homeownership rate is under downward pressure in this country. We are disputing some of the ‘evidence’ used in the article. Here are three points we want to refute:

The Homeownership Rate IS NOT in a Freefall

The article quotes a Morgan Stanley study from July 2011 which did make the argument that the homeownership rate was trending downward. Many others made the same point at that time. What the article failed to mention is that the homeownership rate unexpectedly increased in the third quarter of 2011! As DSNews reported in early November:

“After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report.”

The jury is still out as to whether the homeownership rate will continue to fall or whether it has already bottomed out.

The Founders of Case-Shiller ARE NOT Saying Renting is Better

In the article mentioned above, they claim that the team that founded the prestigious Case-Shiller Pricing Index believes that buying makes little sense. The article explains that back in 2006 Robert Shiller presented a study based on data collected prior to 2005 showing that, over time, it made more sense to rent than buy. They use this information to conclude:

“Another skeptic is Yale economist Robert Shiller, co-creator of the Case-Shiller Home Price Index.”

They claim Shiller is a skeptic today based on what he said six years ago!

The major challenge we have with this is that Karl Case, the other founder of the Case Shiller Index, came out ten days ago saying that now is the time to buy. The New York Times in a story published on 12/30/2011 quotes Professor Case as saying:

“If you’re buying a house or apartment to live in and pay for over time, and can afford the payments, then it’s a terrific time to buy.”

Beracha and Johnson DID NOT Conclude That You Shouldn’t Buy

The Fiscal Times article went on to say:

“And in a paper this June in the journal Real Estate Economics, two researchers calculated that over the past 30 years, most often it would have been better to rent than buy.”

They were referring to the great study done by Beracha and Johnson titled Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? We are very familiar with this study as we posted on it back in May of last year. The paper does explain that over the last thirty years the financial benefits of buying vs. renting could be debated.

However, the conclusion of the paper left no room for argument. According to professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

“[This] might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Dr. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research, is now a guest blogger on this site and in November shared with us his current presentation on this issue. To download the presentation, go to http://realestate.fiu.edu/buyer-or-renter-nation.html.

Bottom Line

We attempt to keep our readers current on this very rapidly evolving housing market with this blog, our tweets, our facebook posts and our subscription service. The letters K-C-M preface each offering. They actually stand for ‘keeping current matters’. We believe that helping our followers stay on top of the latest information available will help correct the housing market.

 

 

The Power of Assumability

 

One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when the FHA homebuyer of today is looking to sell his home, a qualified purchaser can “take over” their loan.

Most people believe that interest rates will return to a “normal” range (between 6.5% and 7%) in a couple of years. When you assume a mortgage, the terms remain the same. This means that a buyer five years from now can enjoy a 4 – 4.5% mortgage by assumption rather than the 6.5% – 7% mortgage they would get without it. Since most people buy homes based on how the monthly payment fits into their personal monthly budget, this is extremely impactful.

As an example, a $300,000 loan at 4% today carries with it a $1,432.25 principal and interest payment on a 30 year fixed mortgage. If offered for sale in five years, the purchaser could assume the $271,858.56 balance with the same $1,432.25 payment and remaining term of 25 years. The total payments over the 25 years would be $429,675.

Compare that to a new $272,000 loan at 6.5% for 25 years, which would carry a monthly payment of $1,836.56 (over $400 more a month than the assumption and more than $120,000 more over the 25 year term).

At 6.5% for 25 years, to wind up with the same payment as the assumed mortgage, our borrowers would only be getting $212,000…$60,000 LESS!

The point here is that, when rates go up, homes with assumable mortgages will have more value and will sell at higher prices because they are more affordable. As an additional bonus, the closing costs on assumable mortgages are significantly less (especially here in New York where NYS Mortgage Tax is such a large component of closing costs).

The borrowers must be credit-worthy of course (have good credit, qualifying income, and necessary assets to close), but they would have to be credit-worthy to get a new mortgage too!

Besides the multiple other reasons to obtain an FHA mortgage (low down payment requirements, extended income ratios, lower credit scores, and easier sourcing of funds), there is another perk. In the future, there is a good chance that you may be able to sell your home for more money because of the FHA loan’s assumability.

credit Dean Hartman

Downers Grove Real Estate

 

At 31, Robert Charlton had grown disillusioned with his job as a technical writer. "The idea of doing a desk job for another 30 years seemed painful to me, so I came up with this idea of trying to retire before 45," he says. He shared the idea with his wife Robin, who was then 31 and working as a travel agent.

Robert read up on personal finance instead of hiring an adviser and looked at taxable accounts they could draw from before turning 60. During that period, Robin completed an accelerated nursing program to become a registered nurse. By age 43, they'd gone from $16.88 in their checkbook at age 28 to saving up enough money to leave both their jobs and live off the interest.

 

5 TIPS FROM EARLY RETIREES

 1. Cut housing costs. The Charltons spent a year carefully tracking their spending to see where they could cut back. But as Robert says, "the truth of the matter is, we really didn't have that much fat to cut out." Still, they agreed to rent out half of the bi-level starter home they owned in Boulder, Colo., so they could pay off the mortgage and pad their savings. Switching from a 30-year to a 15-year mortgage also helped the couple reach their goal. "You save so much on interest that it does result in a higher monthly payment, but not as high you would think," says Robert. They later sold their house and put the equity into a bond fund.

2. Agree on your priorities. Instead of buying new cars, the couple kept their old ones, and Robin stuck to grocery shopping lists instead of buying whatever caught her eye. "That's how he shopped [without sticking to the list] so he was cut off from shopping," she says. Keeping their shared goal in mind kept their eyes on the prize. "We were both on the same page," adds Robin. "We both knew we wanted to put the money towards experiences." However, because they value travel so much, the Charltons didn't completely deprive themselves while saving up for retirement. As Robert says, it's important to "balance living for tomorrow with living for today." If saving feels like too much of a chore, it's easy to fall of the bandwagon.

3. Live below your means. Now that they've left the workforce, the Charltons live modestly by staying in hostels and focusing on less expensive travel destinations. They estimated needing between $30,000 and $40,000 annually, and they've managed to stay in that range, though they're averaging closer to $40,000. Earlier this year, they splurged on a trip to Italy and Switzerland for their 25th wedding anniversary. However, Robert says, "we typically have tried to travel places where the dollar goes further, like Argentina and Chile, where the exchange rate was in our favor." Destinations like India and Nepal have higher airfare but low day-to-day expenses so they stay for several months at a time to balance out the airfare costs.

4. Stay in the game. Although the Charltons' portfolio has had its ups and downs, they've resisted the urge to try to time the stock market or get out altogether. "We did some of our best investing during the bear market of 2000 to 2002," says Robert. "We bought stocks 'on sale' and reaped the rewards afterwards." Although he says they could have gotten a higher return on investment if the timing had been different, they also underestimated future earnings, so that helped them reach their target more quickly than planned.

5. Don't rule out temporary work. Dips in the market have made it more challenging for the Charltons to live off their interest. So when Robert was offered a six-month consulting project in 2009, he jumped at the opportunity to rebuild their capital. Although he'd once dreaded going to work, he actually liked the temporary arrangement. "I genuinely enjoyed working hard during that window because I knew it wasn't endless, which was the thing I found challenging early on when I first came up with this plan," he says.

Robin adds that they're open to making adjustments as they go or returning to work if needed. However, she values the chance to travel and be active while they're young and healthy. "Working as a nurse, I realize so many people save so much and a lot of people don't get all the years they thought they'd get," she says.

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Dupage County Health Department > News

FOLLOW THESE PRECAUTIONS FOR FURNACE AND FIREPLACE SAFETY

Mon January 9, 2012

DUPAGE COUNTY- People rely on their furnaces and fireplaces to function properly year after year, often not remembering proper maintenance or cleaning. This is a dangerous practice resulting in thousands of injuries and deaths among Americans. The DuPage County Health Department recommends the following precautions to keep your family safe this winter:

Furnaces:

• Change or clean your furnace filter regularly.
• Have a professional check your furnace to be sure it is in good repair. Some furnace services can check to see if the furnace gets enough fresh air. Many homes are over-insulated and lack intake-air piping. This causes the furnace to burn improperly and can reduce the oxygen in your home to a dangerously low level.
• Move all materials that burn easily away from the furnace, including old rags, sawdust, wood scraps and flammable liquids such as gasoline and kerosene. (Because vapors from flammable liquids ignite easily, store these liquids in tightly capped containers.)
• Have a professional inspect your chimney and flue at least once a year and clean them if necessary. Carbon monoxide levels can become dangerous if smoke cannot escape from blocked flues or chimneys. Also, soot in flues and chimneys is highly combustible and can easily ignite, sending a ball of fire from the furnace or fireplace into the house.

Fireplaces:

• If you have a fireplace, be sure it was made to be used and is not just for decoration.
• Only burn materials designed for a fireplace. Coal and charcoal release carbon monoxide, and some products emit deadly gases. If using artificial logs, burn just one at a time. They may produce more heat than the fireplace can withstand.
• Always use a fireplace screen to prevent hot embers from popping out into the room.
• Do not go to bed or leave the house until you are sure the fire is completely out. Securely shut the fireplace screen or doors.
• Put ashes in a metal container and empty it after each time you clean the fireplace.
• Install smoke and carbon monoxide detectors on every level of the home. Test the alarms periodically and change the batteries at least once per year.

For more information on the DuPage County Health Department, follow us on Twitter @DuPageHD or become a fan on Facebook