What To Buy In February

What To Buy In February

Hopefully you purchased your jewelry during the sales in December and January because prices are back up for February.
If not, don’t despair! Look for coupons for value-driven jewelry sites like  Netaya, ICE.com, Limoges Jewelry, and Ross-Simons.
There are also great coupons for lingerie sites like Victoria’s Secret and Frederick’s of Hollywood but watch the expiration date carefully.
Also, look at the ads for department stores like Macy’s. Last year, they had some good sales through February 14th.Then look for really big President’s Day sales the weekend after Valentine’s Day. This may be a good time to buy jewelry for Mother’s Day. Historically, retailers take as much as 85% off on a variety of goods like clothing, tools, bedding, and furniture. Some retailers tend to offer deeper discounts on existing sales, while others will lean towards modest coupons (likely an extra 20% to 30% off) that are applicable sitewide. Look to clothing and department stores for a big Presidents’ Day sale push.

So, what else to buy? If you’ve wanted a Wii U, look for great prices or amazing bundles. Nintendo released a report that showed their sales were far lower then they’d hoped. So, they will be motivated to get more people buying. Tax software will still be priced lower than it will in April.
Winter clothes are on the clearance racks right now as Spring apparel is being highlighted.

For big screen televisions, look for 55″ 3D 1080p LCD HDTVs. For the past five months the best deals on these TVs have averaged $700, and it’s only a matter of time before they hit sub-$700 terrain — especially now that 2014′s new models were announced at last month’s Consumer Electronics Show. If you don’t care for 3D, then look for standard 55″ 1080p LCDs that dip as low as $500. And while we generally wouldn’t recommend jumping on the 4K bandwagon, the 65″ Seiki SE65UY04, which Dealnews.com predicted would hit $1,900 in February, actually hit $1,388 last month. That’s a 53% drop from its December launch and a much faster price drop than expected. While it’s not videophile quality, it is a cheap way to get your feet wet with 4K technology, and may be more appealing in 2014, since there are more providers of 4K content.

Touchscreen ultraportable laptops have gone below $200, so if you’ve been thinking about it, now may be the time.

Don’t buy smartphones if you can help it. New models will be announced soon, and we should see price breaks then.

And to save money on groceries, buy what’s in season. There’s more than you might think.

• Arugula
• Asparagus
• Artichokes
• Beets
• Bok choy
• Broccoli
• Brussels Sprouts
• Cabbage
• Cauliflower
• Carrots
• Celery
• Cilantro
• Clementines
• Dill
• Fennel
• Grapefruit
• Kale
• Lemons
• Lettuce
• Leeks
• Oranges
• Onions
• Parsnips
• Pears
• Shallots
• Sweet Potatoes
• Tangelos
• Tangerines
• Turnips
• Rhubarb

And there are cycles to what’s on sale in your supermarket.
National Canned Food Month: Canned Fruit, Pie Fillings, Vegetables, Meats: Tuna, Chicken, Salmon
National Hot Breakfast Month:  Malt O Meal, Oatmeal, Eggo Waffles, Syrup
Valentines:  Chocolate,  flowers

Chinese New Year: Soy Sauce, Teriyaki Sauce, Noodles, Canned Water Chestnuts
Heart and heart-healthy products (American Heart Month): aspirin, supplements,low cholesterol oils and spreads

Westminster Dog Show February promotions: Dog food from Eukanuba, Pedigree, Purina, and Iams

What do you usually buy in February?

Planting Spring Bulbs

If you’ve gone into your local gardening supply store, you’ve probably seen large racks of bulbs for sale. The bulbs have big flowers and fun names like Dahlias and Gladiolas.

These are the bulbs you plant now that bloom in the summer and create a gorgeous burst of color. There are many varieties of flowering plants, but few offer all the advantages of bulb plants. For starters, bulbs are generally cheap to buy, and are available from local shops or on the internet.


Bulbs are also beautiful putting out the most beloved flowers in the garden. Irises, hyacinths, daffodils and tulips are also bulb plants. Most of these should have been planted in the late fall or early Winter. But don’t let that stop you. If you can find the bulbs, plant them and they will certainly bloom the next year. Sometimes, they even reward you by blooming the first year.
Even though bulbs are among the hardiest of all plants, it is important to exercise caution when planting them, and to buy only the best and most healthy bulbs. By choosing the healthiest bulbs, it will be easy to create a beautiful and healthy garden year after year.

When shopping for bulbs, look for the firmest, plumpest bulbs you can find. A good, high quality bulb will seem surprisingly heavy for its size. Avoid bulbs that are too soft as it’s often a sign of bulb rot. In addition, bulbs that are very light in weight, or that appear shriveled or cracked, should be rejected. These bulbs may have lost too much of their moisture to bloom in the garden.
The best blooms are generally provided by the largest bulbs. For instance, the largest iris bulbs will generally provide the biggest irises, and the biggest tulip bulbs will produce the largest tulips. Since bulbs bloom every year, a most cost effective approach for the patient gardener is to buy small bulbs and allow them to grow over time. Or you can buy some large and some small and build up your garden with a variety of color and flowers that are timed with the season. For example, you could have the crocuses and paperwhites flower in early spring giving way to tulips and then irises and finally the dahlias.

Just be certain to give each bulb plenty of space to grow, and plant them in well draining soil. If water hangs out, you’ll unfortunately rot out your bulb.
And take care of your bulbs annually. A great gift could be some bulbs and directions on how to grow them.

Home Improvement With A Pocketful Of Tips

It’s a new year, and maybe it’s time for some “newness” in your home. If you have been planning for a while that you would like to make some updates to your home, but have put it off because you just don’t know where to start, let us help you determine what to do, how to do it, and how to get the best deal possible.

 

 Today, we’ll do some quick tips.

To keep your toilets clean, pour bleach inside the bowl. Close the lid and let it sit for 15-20 minutes. Bleaching your toilets will smell bad for a while, but it will decrease your chance of getting sick and spreading germs as well as making your toilet nice and shiny.

When looking to improve your home, consider going with Compact Fluorescent Lights. CFLs do not use as much energy as a normal light, and they last a lot longer. When you switch your lights to Compact Fluorescent Lights, you will save money on your energy bills. CFLs do contain mercury, so you will need to find out where to properly dispose of them. If you don’t like the idea of the mercury, spend a little bit more on LED bulbs. They last just as long and you don’t have to worry about calling a hazmat team if they break.

When you are remodeling your bathroom, make sure not to add carpeting to the floor. Not only does carpeting stain easily, but the water from the shower will give the carpet, and subsequently your whole bathroom, a musty odor. Instead, go with a tile so you can easily clean up any water that may get on the floor.

Store your paint cans upside down. A skin forms inside used cans of paint. When you open the can it’s a mess to remove. One solution is to put the used paint cans in your storage area upside down! That way when you turn the can over and open it, the skin is underneath the paint where it can’t cause a problem.

Cover your door knobs, hinges and other hardware with petroleum jelly before painting. It is an easy way to insure they don’t get covered in paint. All you have to do when you are finished painting is use a soft cotton cloth to wipe the petroleum jelly from the surfaces of the hardware.

Painting an indoor room can be done quickly and easily. If possible, try to do all your painting in daylight hours, as artificial light can cause you to miss small areas. Tackle the ceiling first painting around the edges in bands then working your way towards the center. The walls should be painted starting at the top, and working downwards in overlapping sections.

If you are having home repairs done by a contractor, always get multiple bids from several licensed contractors that are well established and highly recommended. Make sure that the bids you receive are written and contain fixed-price bids for the needed services. Ensure that the wording is detailed. You don’t want to go with the best price and find out it didn’t include something major.

Don’t keep putting off your home improvement projects because you lack the knowledge or expertise to do it all on your own. There are plenty of ways that you can make significant changes in your home, with a little bit of time, research, and practice.

What home improvement projects are on your list for this year?

Should You Rent or Buy in 2014

 

Housing prices are increasing and so are mortgage interest rates. New regulations in 2014 also increased closing costs and put limits on the amount of points you could use to pay down your interest rate. They also created stricter guidelines for application approvals.

So if you’re a first time home buyer, you may be asking yourself: should I continue to rent or should I buy in 2014?

TIG adviser Jeff Lewis was interviewed on Fox Business to answer this very question. You can see the full 6:32 minute video here. His prediction is that the housing market will get back to normal by the end of the calendar year.

In his opinion, housing prices are still affordable now compared to housing prices before the real estate bubble that inflated costs tremendously. They are not as easily affordable as they were the last two years, and as interest rates continue to increase and housing prices level up, we will achieve a normal balance by the end of the year.

We’re seeing a greater recovery in the states with the better abilities to create jobs. Housing is still in a very bad state in the Midwest and big cities like Detroit. Mr. Lewis speculated that increased home ownership may be part of the problem because it reduced mobility of people to leave the area and find a better job. The homeowners are stuck in underwater housing and no jobs.

Also, in large cities, home ownership is near impossible, and there isn’t the same stigma attached to being a life-long renter. In fact, renting is considered a bonus because when there are problems like water leaks, the owner of the building has to fix it.

Still, for many people buying a home is achieving an American Dream. The bottom line for future homeowners is to evaluate their expectation of prices and goals. If it is your goal to own a home on a nice tree-lined street and have block parties, then you should start talking with a reputable mortgage officer to find out how much you could pre-qualify for. A knowledgeable real estate agent will also be able to help you find the right home. You may want to save up longer and buy the one home you will stay in, or you may want to invest in a starter home that you can sell to get back your equity, or rent out.

For real estate investors, it’s still a great time to be buying homes that are lower than their normal value. Rental vacancy rates are still at an all time low.

Will you be buying in 2014?

Now Is The Time To Buy Before 2014 Begins

We mentioned in an earlier blog that interest rates will be staying lower, and it's still cheaper to own than to rent. 

So in today’s blog, we’re pulling out the sledgehammer to give you a nudge if you’re on the fence: This last quarter is a great time to buy a home before 2014.

There had been concerns that the feds would tighten requirements for home loans, but that hasn’t happened yet. Many banks and credit unions have easier criteria to help some people get that home loan they’ve been wanting. If you have good credit and some savings for a down payment, you probably can get your own home. If you stay in your home at least five years, you could profit from the sale.

Home prices aren’t at rock bottom anymore, but they are still relatively low. And they will continue to rise. The Home Price Expectation Survey projects an increase in home values over the next five years to be between 12.3% and 32.8%. If you wait longer, the house will cost more.

There is less competition from home flippers. Investors can’t move as quickly now as they used to coupled with increasing housing prices are making house flipping less attractive. That gives you more inventory. And as we also mentioned, home builders are still building new homes to also increase the inventory.

MSN Real Estate reported that builders are offering aggressive discounts with completed new homes. The nice thing about a new home is you get a warranty not only on the home, but also the appliances.

“[Builders] want to save their credit, save their brand, save their reputation and clear out inventory,” he said. “They can go buy cheap land today with that cash.”

Did we mention it’s cheaper to buy than to rent in most areas? You also get the mortgage interest deduction which isn’t going away any time soon. Plus instead of putting money into savings, you’re building up equity in your home. And you’re avoiding the cost of rising rents. How many of us have met people who had their rents increased recently because the landlords felt they could?
Interest rates aren’t at their lowest, but they are still relatively low. Unfortunately, they could start increasing again.

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows.
The National Association of Realtors, the Mortgage Bankers Association, Freddie Macand Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year.

One percent could mean the difference in the amount of house you can afford.
There’s still time to get your credit in order.  Talk to a reputable loan officer about what your options could be and how much you could afford. It’s still a solid investment if you’re intending on living there for a few years.

What Are Starter Homes?

Are starter homes just for young people?

Are starter homes the same as first homes?
Are starter homes always condos or townhouses?
We hear a lot of questions about starter homes. And as we’ve blogged, it is still cheaper overall to own a home than to rent right now. But if you don’t have a lot of savings or income, does this mean you should buy the little condo and live there for a year or three until you can buy a larger home?
Then, what do you do with your starter home? Should you sell it or rent it out?
Let’s back up.

The Personal Questions

The number one question you need to ask yourself is if you want to be a homeowner. It doesn’t matter if it makes good financial sense. Some people like having someone else be responsible for repairs and maintenance. When that water pipe starts leaking, you the homeowner will need to hire a plumber to fix it.
Once you’ve answered yes, then it’s time to find a reputable loan officer and get preapproved for a loan. That will tell you the ballpark of what you can buy. Remember, though, if you buy a home with your maximum loan amount, you will be house rich and cash poor for awhile.
This may not be a bad thing if you don’t want to move again for awhile, but keep in mind you won’t be going on many vacations and will have to get creative with inexpensive furnishings. If you have very young children, you can use a room as the toy or play room instead of furnishing it.
If you want to buy a starter home, live in it a few years, and then sell it, make sure you buy a house that is affordable, otherwise you will have difficulties selling it to someone else looking for a starter home.
It’s also a good rule of thumb to buy a house with at least two bedrooms if you want to resell the property.
If all you can afford is a one bedroom condo, you may want to look into renting it out when you’re ready to upgrade.

So Where To Buy?

Here’s where we get into the chicken or the egg scenario. A great Realtor will be an expert in an area and help you find a great property but you should know the areas where you’re interested in buying.
So spend some time driving around and looking at open houses. You’re not really there to look at the houses (although, go for it and get some great decorating ideas). Take the time to meet the Realtors and find out which area is their expertise.
Then get referrals from friends.  Don’t rush this. Your Realtor is your partner, and you want to feel comfortable and have a high level of trust.
Your home, ideally, should answer the question of “Is this good for me” in four areas:

• A neighborhood with well-maintained, attractive homes.
• A location convenient to local amenities.
• Close proximity to work.
• A quality school district, especially for first-time homebuyers who plan to have children.

You may not even be thinking of kids right now, but when you buy a home, you should. Why? Well, you may have kids in the future and it also impacts the resale value of the house.
Don’t hesitate to look at new construction as well. There are some really good deals going on because building companies need to sell existing homes so they can finish building the rest of them
Are you ready to buy your first home? Now is still a great time to buy before the end of the year.

Often Overlooked Tax Deductions for Homeowners

Did you do any home improvements last year?  If so, did you know you can deduct the sales tax?  And if you took out a home loan for it, you might be able to deduct the interest.

That’s just one of the twenty one  most overlooked tax deductions that Kiplinger reported on recently, and some others we’ve found for you specifically for homeowners.

 

State Sales Tax

If you think the deduction for state sales taxes expired in 2011, you’re right. But a bill approved this past Jan. 1 restored it, and the restoration is retroactive. Review the IRS restrictions, but don’t overlook deducting big-ticket purchases, including major home improvements.

Mortgage Points

You may want to talk to a professional about this one since it can get complicated. When you refinance a loan for the first time, the points are deductible, with a caveat: You can’t deduct them all at once, as you can with an initial home purchase. Rather, your tax-deductible points must be spread out over the life of the loan.  (And if you just bought a home this year, don’t forget to deduct those points!)
But here’s the important tip: When you refinance again, you’re essentially ending the prior loan, and you can deduct the rest of the points from that transaction with one exception. (You knew there had to be a catch)  If you re-refinance with the same lender, then you roll those as-yet-undeducted points into any new points and spread it out the total over the loan term.

Energy-saving home improvements

Tax credits for some energy-efficient home improvements officially expired at the end of 2011, but like the sales tax, Congress recently revived them, retroactive to 2012. The maximum credit for 2012 is $500 of which only $200 can go towards windows. And that $500 is the maximum you can claim on all of your tax returns from 2006 through 2013.
The good news is that there is no limit for a different credit for homeowners who installed qualified alternative energy equipment like geothermal heat pumps, solar hot water heaters, etc.  That credit can be 30% of the total cost including labor and is valid through 2016.

Improved Home Office Deduction

A tax break that allowed business owners to write off 100% of the cost of qualified assets placed into service expired in 2011. Congress didn’t extend it retroactively, but it came back as a break to write off 50% of the cost of a qualified asset for purchases in 2012.
However, Congress did restore retroactively the ability to write off the full cost of new assets in the year that you put them into service.  The former limit was $39,000, but now it’s up to $500,000.

Mortgage Interest Paid at Settlement

You can find this in your closing statement.  If you have any questions, contact your loan officer. You will have to use Schedule A and itemize.

Property Taxes

You can deduct your state and local property taxes for the assessed value of the real property unless your money is being held in escrow for the purpose of paying the taxes.

Selling Costs

You can deduct simple expenses that you incurred selling a home in the past year including repairs, advertising expenses, title insurance, and broker’s fees.  The repairs can only be deducted if they were made because you intended to sell.

Mortgage Insurance Premiums

If you had PMI (private mortgage insurance) for your primary residence, you might be able to deduct the cost of the premiums. This deduction also includes a second home if it’s not a rental property.
However, it phases out once your adjusted gross income reaches $100,000.  You can only deduct the premiums paid for the current tax year.  And there are some other rules and regulations if your mortgage is provided for by the Federal Housing Administration, Department of Veterans Affairs and Rural Housing Service. Contact a licensed tax professional to find out what you are eligible for.

Home Improvement Loan Interest

If you took out a loan specifically to improve your home, you can deduct the interest because it’s considered a “capital improvement”. However, it has to specifically improve and increase the value of the home.  So new paint or carpeting doesn’t count, but adding on a new bathroom or a roof might.

Construction Loan Interest

Let’s say you’re finally ready to build your dream home on the property you’ve owned for awhile.  You may qualify to deduct the interest.  The IRS has quite a number of regulations on this including that it will be used for personal purposes.
Remember, everyone’s situation is different. Contact a licensed professional to review your particular situation.  If you need to, talk to them after April 15th and file an amended return.
Will you be getting money back this year?  If you are, will you use it for a vacation or put it into savings?