3 Home Renovations That Pay Off

 

 

Did you buy a house that you’re intending to flip? Or perhaps you just bought your first house, and know that you want to make some smart updates that will improve the resale value when you sell it to buy a larger home in a few years. Or you’ve lived in your home a long time and are thinking of selling to downgrade, and want to get the most money possible.
So today we’ll look at the big three home renovations that get you the most money in return for your money invested.

 

Baths and Kitchens

These are the gold standards of renovations. Talk with a local real estate agent who knows your neighborhood as to what the trends are. If people are buying homes with cabinets, and you remodel with all pedestal sinks, it may not bump up the prices like you want.
Repainting cabinet door fronts and updating hardware, counter-tops and appliances will give you the best ROI. And make sure the floor looks nice. If not, look for some inexpensive vinyl flooring.
If you’re trying to save money with your bathroom renovation, keep the tub and tile, but look into updating the faucet fixtures, light fixtures and the toilet. People are really looking for low-flow toilets, but the big draw are the two way flush toilets.
In the kitchen, look to replace laminate counter-tops with granite or fake stone. And black and white appliances are being upgraded to stainless steel.

Update for Efficiency

One of the first questions most home buyers want to know is “how much is it going to cost me monthly?” So look at ways to save yourself money, and keep the documentation, and your home will look like a great prospect when you go to sell it.
Look into updating:

• toilets
• water heater
• HVAC
• low flow showerheads
• windows
• doors
• weatherstripping
• and all kitchen appliances

Should you upgrade to solar? That’s a good question. The companies show how you can save money, but some of them have you buy the panels. You need to ask if it’s transferable or if you’ll be on the hook for paying an exit charge.

Fix Up the Outside

This is just simply making the outside of the house pop. Add in new landscaping. Repaint the outside. Clean up the backyard. Get your trees trimmed. Reseed any bare spots in your lawn. Upgrade your sprinkler system (see if your water company has any good rebates). Make it a house you want to come home to.

Real Estate Investment Secrets

 

 

Ok, these aren’t really secrets, but they are good advice. Once upon a time back in the days of the Wild West, Easterners who traveled West looking for opportunity were often called a ‘tenderfoot’.
This wasn’t a complimentary term but it was a rather apt one. They wore ‘city’ shoes that weren’t designed to withstand the rigors of the western terrain, not to mention their hats didn’t have wide brims, and their clothing wasn’t sturdy.
These new Westerners didn’t know how to take care of themselves and avoid danger, because they didn’t know what was dangerous. If you are just beginning to consider the idea of investing in real estate, you are a tenderfoot and you do need some instruction to avoid losing your shirt…and probably your pants, hat and boots, as well.

We’ve talked a bit in prior blog posts about how to find investment property, but today, we’ll take an even bigger step back. First and foremost, you will need to determine what your strategy will be in real estate investing. Do you want to buy a property, fix it up and sell it quickly or do you want to buy a property, hold it and wait for the market to increase? Do you want to deal with renters?

You will need to learn how to investigate the value of properties yourself. It isn’t fair to use the time of a real estate agent and have them show you property after property while you try to look for a good deal.
There are several online sites that are helpful in determining a more realistic value of real estate. Don’t rely on tax records as they are not reliable and probably not accurate either.
After you have learned how to determine property values yourself and have chosen a real estate agent that you can work with, the next thing that you need is a professional mortgage broker that you can also work with. Ask your real estate agent or friends for the names of three mortgage brokers. Talk with them about your goals, and see which one you mesh with best.
Then you need to get pre-qualified or pre-approved, which we’ve talked about in the past as well. It’s essential to be pre-approved if you want to move quickly when you find a property.
Once you have all of your ‘ducks in a row’, it takes about 30 days to make the final close of escrow.
Okay, remember the first thing that you needed to do?  (Determining your strategy.)  Now is the time for you to execute that strategy. If you bought it with the strategy of flipping it when the market went up, you just simply wait. If you bought it with the strategy of renovating and then selling, then it is time to start your renovations. And, if you bought it with the strategy of renting it, now is time to start looking for tenants.

 

Three Ways to Remove Stress When Moving

 

We probably should say remove some of the stress. Moving is one of the most stressful events in our lives like birth and marriages. The end result is something we want, but the process can drive you insane.
In a prior post on moving during the holidays, we talked about the importance of having a kit that you move rather then the movers. The kit should have toilet paper, paper towels, a flashlight, cleaning wipes, and some simple snacks. You won’t want to cook, and you may not have electricity when you first move in. Also, you’ll have a special box filled with the irreplaceable items like jewelry, medications, and important papers.
Today, we have three more tips that will make your life easier when you move. All of these require some early planning. Hopefully when you move, you’ll have at least 30-45 days to plan, pack and move.

Know What’s In The Box

You know you should keep a master list of what is in each box, but how to make it easy? Take some notebook paper and some masking tape, and tape a piece of paper on each box. You’ll probably be packing for a few weeks before you move. Whenever you put something in the box, make a note. It doesn’t have to be huge amount of detail, just something meaningful to you like “favorite mug” or “favorite wine glass.”
When the box is full, pull off the paper and place it into a file folder. Make sure you number the paper and the box so you know how to match it up.

Get Rid of Stuff

If you no longer own it, you no longer have to pack it. Once you start packing, you may be amazed at the duplication. You may find five wine openers because you couldn’t find one and bought a replacement. Clear out the clutter by having a number of yard sales, or put items up for auction or online classifieds. Give items away on freecycle to help others who may have a really great use for your extra stand mixer that’s still in a box. Or just bring a large box to donate.
In your new house, try to think about ways of unpacking so you never lose the basics again.

Get Free Boxes

Talk with your local grocery store about taking their boxes that held paper towels and toilet paper. They’re large and sturdy. The grocery store will be happy because it saves them time and effort from having to break down the boxes and binding them together for recycling.
Also ask for their wine boxes. You can also go to your local liquor store and get wine boxes from them as well. These boxes are naturally well padded and have the bonus of the built-in dividers which you can use for packing your glasses without the added cost of bubble wrap.
Will you be moving soon? What’s your best tip to make moving less stressful?

What to Do if Your Taxes Aren’t Done

We’re getting close to April 15th. But maybe the months of January through March zoomed by faster than an Indy race car and you’re still in shock that your taxes aren’t even started, let alone ready to be submitted.

Don’t panic.
You can file an extension that gives you six more months.
However (and it’s a big one), this only delays when you have to file the forms. It doesn’t delay you paying what you think you owe. An extension can help reduce your penalties if you cannot afford to pay in full by the deadline.
There are two basic penalties the IRS usually imposes: a late filing penalty of 5% per month on any tax due plus a late payment penalty of half a percent per month. If you file an extension and then file your return by the extended deadline of October 18th, you’ll avoid the 5% per month late filing penalty. If you file after October 15th, the late filing penalty won’t begin until October 15th which reduces the total penalty as well.
Individual taxpayers can file an extension using Form 4868. Extensions can also be filed online, which has the added benefit that you’ll get a confirmation code from the IRS that your extension was received.
Businesses request an extension using Form 7004.
So, if you have had taxes withheld, chances are you won’t have to send any additional money in. Look at your tax returns from previous years to see if you owed or were owed money back, and let that be your guide.
The IRS says there will be no penalty imposed if you underpay if:

• The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen.)
• The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time.
• Your total tax for 2013 (defined later) minus your withholding is less than $1,000.
• You did not have a tax liability for 2012.
• You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000.

So if this year was an off year, give yourself some breathing room and file that extension. If you talk to a tax accountant in May, June or July, you’ll probably get a better rate since it’s their off season.
Let’s look at state taxes.
California gives you an automatic extension, and you don’t have to file a separate form.
Here’s what you should do if you can’t file by April 15, 2014:

• You are due a refund — File your return by October 15, 2014. Choose e-file and direct deposit for the fastest refund.
• You have a balance due — Pay the amount you owe by April 15, 2014 to avoid penalties and interest. You can pay online, by credit card, or by check with form FTB 3519. Then file your return by October 15, 2014. Choose e-file to ensure we receive your return on time.
• You’re not sure if you have a balance due — Use the worksheet on form FTB 3519 to figure your tax.

It’s usually better to overpay the Franchise Tax Board than underpay. They don’t tend to be as understanding and forgiving as the IRS.
And the usual disclaimer applies. Talk with the IRS or FTB and a licensed tax professional to get the best advice for you and your situation.
 

What to Buy in April

We’re freaking out a little too wondering where February went, let alone April. We thought we’d publish our monthly guide now so you can plan ahead this weekend.

What’s Free?

Some fast-food outlets and nationwide chains will be offering free items on April 15 aka Tax Day. If it’s anything like last year, then you should be on the lookout for opportunities to get a free cup of coffee, free breakfast foods, or free side orders or desserts with the purchase of an entrée.

What’s A Great Deal?

If you’ve been wanting to buy that XBox One, now is the time. And it could be a great Easter present. There were a lot of flash sales in March. During one, Amazon sold it for $350. Generally, you can find prices down to $450. The Playstation4 is still far outselling the XBox, so don’t expect any discounts on the PS4 any time soon.

Planning ahead for Mother’s Day? There are some good deals out on jewelry right now, and the prices should stay reasonable throughout April. Expect the prices to increase in May the closer you get to Mother’s Day.

Does your daughter crave Hollister or Abercrombie & Fitch labels? They’ve been hard hit lately (no doubt due to release of their bias towards size 0 shapes as customers and as staff). So what’s good for you is that announced that it will lean more heavily on discounting in order to revive the brand. Moreover, it hopes to turn the Hollister line into a “fast fashion” chain, which means lower retail prices as well. It’s already generated some great sales, so keep an eye on these stores in the coming months. Aeropostale and American Eagle are facing the same problem and may try the same strategy.

For the second straight month, deals on 60″ LCD 1080p HDTVs have been the best out all other television size categories.  More deals doesn’t always translate into better prices; however, during the month of March,  60″ HDTVs tumbled to a new all-time low of $500. That’s $100 cheaper than February’s best deal and the best price we’ve seen for any 60″ TV.

By comparison, prices on other sizes like 55″ and 47″ LCD HDTVs remained unchanged. For 55″ 3D TVs, we’ve actually been experiencing a scarcity of deals. Budget 55″ 4K TVs, like the Seiki SE55UY04, are making more headway in the deal space, hitting a new price low of just $600.

What to Avoid?

Spring cleaning fever hitting hard? Hold off on a new vacuum. The prices are better in November. Black Friday seems to have the best prices for vacuums for the entire year.
Ready to replace your mattress? Wait until the big Memorial Day sales.
March wasn’t a stellar month for deals on laptop computers. In fact, February’s lows were all but erased as deals on most 15″ mainstream laptops  rebounded to pre-holiday rates. The sole exception were laptops with the Haswell Core i3 processor, which is Intel’s budget line of CPUs. These laptops remained steady at $400 for the second consecutive month.
That’s not to say you won’t find any laptop deals this month, but you may benefit from waiting a few more weeks.

What’s In Season?

Cooking with the seasons means choosing fruits and vegetables that are at the peak of freshness and flavor. Buying locally grown produce is the best: local produce is less likely to be damaged, uses less energy to transport, ripens more naturally and you support your local economy.
Some of the fruits and vegetables that are in season for April include:

• Artichokes
• Arugula (Rocket)
• Asparagus
• Beans
• Beets
• Chicory
• Chives
• Dandelion greens
• Fava Beans
• Fiddlehead Fern
• Horseradish
• Leeks (end of season)
• Lettuce (leaf and head)
• Limes
• Morel Mushrooms
• Oranges
• Papayas
• Peas
• Ramps
• Rhubarb
• Shallots
• Strawberries
• Sweet Onions
• Turnips
• Watercress

 

Five Ways To Benefit From Free Mortgage Loan Calculators

An astonishing 80% of home buyers now conduct at least part of their  research online. To help future home buyers, mortgage officers provide free mortgage loan calculators  online. All of these calculators share basic core financial functions with some of them providing advanced features. But they all can provide valuable insight as you navigate the home mortgage process. Let’s take a look at some of the different types of free mortgage loan calculators available online, and see how we can put them to best use.

 

 

Monthly Payments

All free mortgage loan calculators are able to calculate monthly mortgage payments. All you have to do is enter your total mortgage amount and the length of the mortgage, along with the interest rate and the starting date of the mortgage. The calculator will take this information and show you the amount of your monthly mortgage payments.

Some free mortgage loan calculators include an additional feature that will let you calculate the beneficial impact of making extra payments on your mortgage. By entering additional monthly or annual amounts, or adding a one-time payment, you can predict how much earlier your loan pay-off date could occur.

Amortization

Free mortgage loan calculators can also help you figure out your amortization schedule. Whether or not your amortization schedule is based on prepayments, free mortgage loan calculators will help you compute the amount of a monthly payment.

Free mortgage loan calculators determine this by basing their calculations on your data: the principal amount borrowed, loan term, and the annual interest rate. Once the free mortgage loan calculator computes your monthly payment based on this data, you can then create the amortization schedule report.

Bi-Weekly Mortgage

Free mortgage loan calculators can also help you with your bi-weekly mortgage calculations. Making bi-weekly mortgage payments is a relatively painless way to pay additional amounts on your mortgage, saving you interest and shortening the mortgage term. Several free mortgage loan calculators can calculate what your bi-weekly payments will be and show you the amount of interest you will save.

To calculate your bi-weekly payments, total interest, and average interest each bi-weekly period, you will need to input into the free mortgage loan calculator the principal loan balance, the annual interest rate and the amortization. This should be enough for the tool to compute your savings on interest and monthly payments.

Scenarios

Here’s where the free mortgage loan calculators start to get interesting. They help you answer the “what if” questions. You can compare different scenarios to see which course of action leads to the most desirable outcome. For example, you can figure out how the size of your down payment can affect your monthly mortgage payments.

Missing Variable

Free mortgage loan calculators can also help you determine missing variables of a loan. For instance, you can find out how much money you would have to earn in order to afford one.

If you have any questions about what the calculators are asking for or what the answers mean, contact a reputable mortgage loan officer who will be happy to take the time to review the numbers.

 

 

What’s the Truth About Homes Under Electrical Lines?

You’ve been looking at homes and found a nice one, but it’s right under some large electrical wires. Your real estate agent counsels against it saying that a house isn’t safe, or that it lowers the property value.

But is it true?

The answer is that it depends. Generally if there’s electrical towers near the house, it will impact the value and time to sell when you’re ready to sell it. However, it could be a good way for you to buy the house if it’s in a neighborhood you might not ordinarily be able to afford.

But is it dangerous?

The short answer is probably not. However you should consider putting in a contingency that it passes inspection from the local power company to ensure that it’s not leaking. Just know that there is no conclusive evidence to date that power line towers cause cancer. You can search the internet and find compelling proof both ways, but nothing has ever been proven beyond a shadow of a doubt.
However, you should also ask the current owner if they have any problems with television reception, or interference with computers, cell phones, landlines, etc.
And the bottom line is that you need to evaluate for yourself what you want to do. It’s similar to purchasing a house on the corner. Statistically, they have a higher crime rate, but that doesn’t mean you will have a problem with crime.

Resources

For more information, Realtor.org provided a page filled with resources to examine this issue.
One recent article was from Health Physics on Health Risks Associated with Living Near High-Voltage Power Lines.
So, if you’re getting a good deal because there’s a power line, then yes, the property value is lower than if there weren’t power lines. And when you go to sell, most of the people will walk away as soon as they see the power lines. But there will always be people who are looking to get a good house for less than market value.