Category Archives: Personal Finance

Money Monday: Leasing your home

The new American dream: Leasing your house

Source: The Orange County Register

In Southern California, detached, single-family rentals increased 29 percent over the last decade — vs. a 13 percent increase in apartment units, according to the most recent U.S. Census data.

Making sense of the story:

• The tally jumped to 736,400 rental houses in 2016, equal to one out of every four houses in the region. The increase matches trends elsewhere.

• California had a 27 percent gain to 1.8 million rental houses in the most recent decade. Across the nation, detached, single-family rentals jumped 30 percent to 12.5 million in 2016.

• Renters are moving into houses for space, for schools or for privacy, a recent survey by U.C.
Berkeley’s Terner Center for Housing Innovation found. Landlords, on the other hand, range
from small investors to gigantic hedge funds but also include retirees hanging onto their old
houses because they’re in high demand.

• The change could be contributing to a nationwide shortage of homes for sale. It also has
numerous implications for family wealth and for policymakers, since there now are 7 million
more renters in American than a decade ago, and nearly 414,000 more in Southern California.

• The Terner Center study found that while 80 percent of single-family tenants want to buy a home in the next five years, more than 90 percent have financial obstacles to buying.

• Nearly 27 percent of single-family renters who had been homeowners had lost a home to foreclosure. Other factors include student and consumer debt, difficulties in qualifying for a mortgage, or not being able to save for a down payment.

Read the full story: www.ocregister.com/2018/06/29/the-new-american-dream-leasing-your-house

Money Monday: The 2018 financial checklist for new parents

“Becoming a parent is the most life-changing event that many will experience. You are suddenly not only responsible for yourself, but also another person who depends on you for everything.

“When getting ready to embark on this exciting (and, perhaps, scary) new adventure, preparation is key. Both before the baby arrives and in the weeks after, it’s especially helpful to be ready for the financial changes to come. It’s estimated that total child-rearing expenses from birth to age 17 for a middle-income American family is now $233,610. Although the range of expenses across families is wide, the truth is that adding a little one to the family is quite expensive.” (Haven Life. 27 June 2018.)

Read all of Haven’s suggestions on their financial checklist for new parents: 

The 2018 financial checklist for new parents

Money Monday: Saving for major expenses

Here’s a quick estimate on how much you should save per major expense.

save money

Photo by 401kcalculator.org

“With interest rates going up, the cost of borrowing money to pay for major life expenses is also going up. The Federal Reserve has already raised the interest rate three times this year and will most likely raise rates again before the year is out. After years of relatively unchanging rates, it’s become more important for consumers to plan for major expenses. Planning can include researching prices, creating a budget and – most importantly – saving as much as possible to put toward the goal.

“The key to preparing for any major expense is knowing how much to save. While everyone’s financial situation is different, there are some rules of thumb to keep in mind for most major expenses.”

Read the rest of U.S. News’ article here: “How Much Should You Save to Fund Major Expenses?”

Money Monday: How to save more for retirement

Many of us, when faced with that reality, struggle with how we could possibly save more. Following are some thoughts from Forbes on how you can meaningfully begin saving more today for your retirement.

piggy bank saving

photo from 401kcalculator.org

1. Increase your 401(k) contribution percentage whenever you get a raise

2. Capture all the employer match

Read Forbes’ other five thoughts here: “The 7 Easiest Ways To Save More For Your Retirement.”

Money Monday: When to DIY or hire a professional

What to spend money on (and what to DIY) as a new homeowner

diy home improvement“After the thrill of buying a new home wears off, new owners can get overwhelmed thinking about all the new costs incurred.

“You may be tempted to outsource it all. But maybe you’re not made of money? Besides, there are things that are worth doing yourself.

“For homeowners embarking on something new, it may not be clear what to take care of or how, and when to try to do it yourself and when to call the pros.” Here are some guidelines from CNN:

What to spend money on (and what to DIY) as a new homeowner.

Money Monday: How Homeowners are Paying for Popular Projects

As a homeowner, you typically want to make the place your own by doing home improvements. But what projects are usually done? And for #MoneyMonday, we’ll look at how it’s paid for.

Projects are typically done on a large scale. Here’s what gets tackled:

  • 43% focus on outdoor projecs
  • 31% are bathroom remodels
  • 28% on the unfortunate home repairs
  • 26% done on kitchen remodels
  • 16% narrow in on the garage
  • 5% are about the pool

And how are they paying for it? A surprising 62% of homeowners tap into their savings! (Way to go, financially savvy owners!) For those who don’t have the cash resources, they turn to the following to cover their house project:

  • 30% use a credit card
  • 13% take out home equity line of credit
  • 10% use a vague “other” method of payment
  • 9% liquidate or pull money from investments
  • 5% use a home improvement loan

As far as what you should focus on if you’re thinking of improving your house for the purpose of putting it on the market? Here’s projects in 2017 that had the best resale ROI.

And call me if you’re selling in the San Diego County! I’d love to have an opportunity to interview for the position of selling your home! John A Silva — 619-890-3648.

This infographic can be found here at CAR.org.

Money Monday: What’s in a Home Value?

When you are selling or buying, the value of houses can be affected by so many things.

Of course, location and neighborhood comps affect the going price of the home, but other things you may not have thought about can affect it as well. These include: privacy, frontage length, the backyard sloping down, and more.

CAR.org home value

This infographic is from CAR.org.

Money Monday: More Americans Making Major Life Changes Without Financial Worries

“According to a new survey from the AICPA, Americans are feeling better about their finances than they were three years ago. Only 35% of adults have delayed a major life decision as a result of financial burdens, compared to 51% in 2015.”

piggy bank saving

photo from 401kcalculator.org

Where was the biggest change? According to Forbes’ article, in the pursuit of higher education. Read more to see what else: “More Americans Making Major Life Changes Without Financial Worries”.