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The west coast is currently being ravaged by wildfires, including five of the top ten largest wildfires in California history so far. These devastating fires have burned down hundreds of millions of acres of land, resulting in at least 36 casualties and the loss of homes, businesses, and other structures. The entire west coast is experiencing unhealthy air quality, and smoke has reached as far as the east coast and even Europe. 

Aside from the immediate consequences in terms of property damage and loss of life, wildfires also have a far-reaching economic impact. From the ongoing costs related to fire suppression and prevention to the loss of revenue, expensive repairs, and insurance hikes that inevitably follow, these fires have lasting financial repercussions.

The current wildfires will have an economic impact on both a local and a national level. While states including California, Oregon, and Washington are some of the most likely to be affected by wildfires, the financial fallout has the potential to be even more widespread.

What’s Ahead:

Fire suppression costs are rising

Battling wildfires is an expensive business, and the cost to fight fires has soared from tens of millions to hundreds of millions in recent years as destructive wildfires have become more and more common.

With 2020 on track to be one of the most devastating wildfire seasons on record, the cost just to get fires under control continues to climb.

You’ll see insurance hikes

As wildfires become more common in areas across the western United States, homeowners insurance and fire insurance is getting more expensive as a result. Some homeowners who live in fire-prone areas are unable to secure insurance coverage at all, with insurance companies canceling policies in high-risk areas.

Those who are able to secure insurance will likely face increased premiums as insurance companies attempt to cover the costs of current and future wildfire seasons.

If you live in an at-risk area for wildfires, you need to make sure you have the right insurance in place to cover all of your bases. Policygenius can help you double-check that you have the right type and amount of coverage for your home – and that you’re paying the best price for it.

Temporary power cuts have affected businesses

Power companies like Pacific Gas & Electric have implemented temporary planned power shutoffs in areas where its equipment is in danger of sparking wildfires. PG&E equipment has sparked over 1,500 fires from 2014 to 2017, and officials expect continued power cuts to be a regular feature of fire seasons to come.

These power cuts can have a negative economic impact when they prevent individuals and businesses from operating as normal. While the company is working toward implementing smaller, less disruptive cuts than the power outages that caused multi-day blackouts in 2018, power cuts will still affect tens of thousands of California residents.

Businesses are also seeing a loss of revenue

The wildfires sweeping across much of the western part of the country also have a severe impact when it comes to the loss of revenue. Many businesses aren’t able to operate normally or at all, and may find it difficult to reopen in the aftermath of the fires while also dealing with other issues such as the pandemic.

Wildfires also decrease the revenue brought in by tourism, which affects everything from restaurants and small businesses to hotels and state parks.

Expensive repairs will be needed

Costly repairs will be necessary for areas where wildfires have burned down buildings and damaged infrastructure. The 2018 wildfire season caused over $40 billion worth of damage, and the 2020 season is on track to cause even more damage.

The cost of the repairs is felt both by individuals whose property has been damaged as well as government agencies responsible for repairing infrastructure and cleaning up debris.

Healthcare costs will rise for those impacted by the fires

Other indirect costs of the wildfires include the healthcare costs associated with treating injuries related to the disaster. This includes treating not only those who were directly injured by the fires themselves, but also those who inhale too much smoke and those who are injured in accidents while evacuating.

Extreme wildfires cause hazardous air quality that can lead to coughs, headaches, and shortness of breath in the short term, and chronic inflammation, heart attacks, and strokes in the long term. Those with preexisting conditions like asthma or compromised immune systems are especially vulnerable.

Economic instability may increase

A report from the Commodity Futures Trading Commission predicts that the increased frequency and intensity of natural disasters like wildfires could result in further economic instability. These disasters can have a negative impact on many disparate areas of the economy including agriculture, infrastructure, residential and commercial property, and the health and wellbeing of American citizens.

Wildfire prevention costs will rise

While strategies implemented to help prevent or curb future wildfires like controlled burns and thinning are necessary, they’re also expensive. California recently passed a bill dedicating $1 billion toward fire prevention over the course of five years, but experts warn that even that amount may not be enough to curtail future fires.

There are many personal costs as well

While it’s not an easy thing to affix a number to, increasingly devastating wildfire seasons also take a tremendous personal toll, from people grieving lost loved ones to those whose houses burned down to those dealing with anxiety and depression caused by the fires.

These losses are often exacerbated by compounding issues like the ongoing coronavirus pandemic, economic inequality, and the effects of climate change.

How to protect your finances from the impact of natural disasters

Experts predict that wildfires and other natural disasters like heat waves and hurricanes will only become more prevalent as climate change continues to accelerate. People all over the world will be negatively affected by these catastrophic events – especially if they live in places with a high risk of fire, floods, or other disasters.

Here are some steps to take in order to prepare for future disasters and keep your finances secure in the face of an increasingly uncertain world.

Make sure you have the right insurance coverage

Insurance coverage for your property is especially important if you live in an area that may be at risk of wildfires. Even if you already have insurance, it’s still a good idea to shop around and compare different policies in order to ensure that you’re getting a good deal.

Again, online tools like Policygenius make it easy to research and compare different insurance options.

Maintain a healthy emergency fund

Experts recommend that you save between three and six months worth of living expenses in an emergency fund. This financial cushion can be a major safety net when it comes to literal emergencies like wildfires as well as other unexpected expenses.

While it can be difficult to increase your savings in a time of increasing economic inequality, it’s a good idea to try to put a little away each month so that you have something to fall back on in case of hard times.

Pack an emergency bag and it keep it up to date

If you live in an area that is prone to natural disasters, you should pack an emergency bag and keep it up to date, including essential such as:

  • First aid kit.
  • Drinking water.
  • Non-perishable food.
  • A change of comfortable clothes.
  • Toiletries.
  • Medications.
  • Cash.
  • Mask.
  • Radio.
  • Flashlight.
  • Local maps.
  • Phone charger and extra battery pack.

Be sure to keep your bag up to date and to swap out any items that are too old or in danger of expiring. You may want to prepare several kits to keep with you at home, in your car, and any other place you spend a lot of time in, such as your workplace or a relative’s house.

Secure important documents

Replacing important documents can be stressful if you have to leave your house during an emergency. You should keep documents in a secure, safe place that you can access quickly if you need to.

Some important documents you may want to take with you include your social security card, birth certificate, passport, and insurance information.

When it comes to other documents like bills and financial statements, consider switching to paperless billing so that you’re able to access them electronically in the case of an emergency.

See if your qualify for tax relief or other forms of aid

If you’ve experienced financial losses due to a federally declared disaster, you may be able to deduct it on your taxes. There are also a variety of wildfire relief funds and resources available, including:

  • The Disaster Cash Assistance Program for Washington state residents.
  • Disaster loan assistance for business owners from the SBA.
  • FEMA Disaster Assistance.
  • Red Cross shelters for those impacted by natural disasters.
  • The California Association of Food Banks.
  • Masks, medicine, and other resources from Direct Relief.
  • Disaster Unemployment Assistance for California residents.

Summary

Some experts estimate that the damage caused by the 2020 wildfire season will have a direct cost of over $20 billion, not including the many indirect costs associated with the fires, such as insurance hikes and loss of revenue. As wildfires continue to increase due to drought, warmer temperatures, and shorter winters, they are sure to have far-reaching effects on the economy.

While many aspects of natural disasters are beyond your control, you can stay prepared by reviewing your insurance coverage, packing an emergency bag, and building up your emergency fund.

Read more:

Source: moneyunder30.com

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If the only things you know about Albuquerque, other than the gritty undersides seen in “Breaking Bad” or “In Plain Sight,” you’re missing the best of The Duke City. Sure, while Bugs Bunny often took the wrong turn there, Albuquerque is a modern, cultural, tech-forward city with laid-back vibes and a diverse population. Touching the edges of the desert and the mountains, Albuquerque has a foot in both worlds. But, which better represents its affordability?

We dissected the Council for Community and Economic Research’s data for the cost of living in Albuquerque for 2022. We compared the overall cost of living index for the city to the national average and to other New Mexico and regional cities. Then, we analyzed the differences in prices from this time last year. We then broke down the numbers for several important economic and consumer categories. And, we studied the costs for rent and real estate in Albuquerque.

The overall cost of living index for Albuquerque is 92.4, with a score of 100 reflecting the national average. That means that the cost of living is just 7.6 percent below the national average, making Albuquerque an affordable Southwest city. And, it’s only getting cheaper. That’s a decrease in the cost of living of 2.12 percent from a year ago.

Albuquerque housing prices

Overall, housing in Albuquerque is relatively affordable. The ABQ has a stellar cost of living rate for housing 12.6 percent below the national average. That’s a drop of just over 1 percent from the previous year.

A studio in Albuquerque averages just $765 a month. And, unlike all other apartment sizes, studios show no change from this time last year. A one-bedroom rents for $1,132 on average, a 14 percent increase from a year ago. A two-bedroom leases for $1,507. That represents a 27 percent year-to-year increase, the highest of any apartment type. Three-bedroom units are up 21 percent to $1,860.

The cost to buy a home in Albuquerque is also up from last year. The median sale price of all homes in the city is $310,000. That’s a steep 9.2 percent year-to-year increase. Homes are currently selling for nearly 3 percent over the list price and are averaging 12 days on the market.

Location, location, location

As in most cities, the most popular neighborhoods are also the priciest. And, in Albuquerque, those neighborhoods lie on the east side of town, many close to the University. The most expensive neighborhood for one-bedroom apartments is Del Rey in the northeast. Those run $1,828 a month on average, a 20 percent increase from this time last year.

For every other apartment type, Uptown, east along I-40, unsurprisingly carries the highest rents. A studio runs $1,837 (more than a Del Rey one-bedroom), a two-bedroom $2,378 and a three-bedroom at $2,630. Those represent a 19 percent, 11 percent and 0 percent increase from a year ago, respectively.

Sycamore, along Central Avenue SE at I-25, is the second-most expensive neighborhood in Albuquerque. Studios rent for $1,418, singles for $1,809 and doubles at $2,212. The good news is each of those is flat year-to-year. Nob Hill, south of UNM, is also among the highest, leasing studios for $1,300 and two-bedrooms for $2,000.

Those looking to save money may consider other cities in the Tiguex region. These smaller cities elsewhere in the state tend to offer lower rent prices but lie further from city amenities. A few examples, based on two-bedroom unit rent:

Albuquerque food prices

The cost of living in Albuquerque for groceries and food items in Albuquerque are in line with the rest of the nation. The city indexes just 0.2 percent north of the national average. However, that represents a steep 7.74 percent rise from a year ago. Other New Mexico cities vary significantly, with the food in Las Cruces 4.8 percent over the national average, while Rio Rancho is under by 2.2 percent.

Many individual staples are well below the median around the country. The taste of Albuquerque blends both Native American and Latino flavors, and individual ingredient costs vary. A pound of ribeye steak runs $11.88, which is about $2 below the average. Frying chicken is $1.08 a pound, about 30 cents cheaper. Lettuce at $1.46 a head and a half-pound of cheese at $3.82 are also below the national average.

However, some items are over-indexed, as well. A pound of ground beef ($5.02), five pounds of sugar ($3.04) and a bottle of extra virgin olive oil ($5.53) are about a half-dollar over the national average. A dozen eggs, orange juice, frozen corn and a can of coffee are among the items slightly more expensive than the rest of the country.

The average meal out at an inexpensive restaurant in Albuquerque is around 15 bucks. A full three-course meal at a mid-range dining spot runs $65. And for a quick bite, a combo meal at McDonald’s averages $8.30.

Albuquerque utility prices

Rent isn’t the only home expense for apartment dwellers. Utilities are often the second-highest recurring cost. Thankfully, utilities in Albuquerque are reasonable. Prices for utilities are 7.8 percent below the national average. That’s a 1.6 percent drop from last year.

This is a figure similar to other New Mexico communities. In Rio Rancho, utilities are 2.2 percent greater. Up in Las Cruces, it’s 3 percent below. Around the region, utilities in Lubbock and Amarillo in Texas (with their own power grid) are down to 9.2 percent and 5.8 percent below the nation as a whole, respectively. Over in Tucson, AZ, however, it’s cheaper by 3.4 percent, with Colorado Springs much higher, exceeding by 2.3 percent.

The total cost for energy in Albuquerque averages $155.04 a month. A cell phone plan runs $187.47 each month.

Albuquerque transportation prices

Transportation prices are cheaper than in the rest of the nation as a whole, good news for the cost of living in Albuquerque. The cost of local travel is 9.3 percent below the national average. That’s thanks to a 5.42 percent decrease from year to year.

The cost of transportation in Albuquerque is significantly less than in other cities in the Land of Enchantment. The expected expense for transport in Las Cruces is 2.2 percent more expensive than the national average, but 2.1 percent cheaper in Rio Rancho. As expected, regional cities in Texas like Lubbock and Amarillo both rank well below 15 percent less than the national average. On the opposite pole, Tucson and Colorado Springs are both only under by at least 5 percent.

The City of Albuquerque Transit Department operates public transport, known as ABQ Ride. There are 22 fixed and 15 commuter bus lines. There are also two bus rapid transit routes, under the moniker Albuquerque Rapid Transit, and one ARTx “Rapid Ride” route.

Normally, standard ABQ Ride fares are $1 for a single trip. However, ABQ Ride is currently piloting a zero-fare program for bus riders. All bus, rapid transit and rapid ride trips are free of charge for all riders through June 30, 2023. After that, fares may return to normal, increase, decrease or remain free, depending on city government determination.

The New Mexico Rail Runner Express commuter train runs between Albuquerque and Santa Fe. The line has 13 stops, including three in Albuquerque. Single trip fares list from 50 cents to $2.50, depending on the zone. Amtrak’s Southwest Chief, from Chicago to Los Angeles, has a stop in downtown Albuquerque at the Alvarado Transportation Center.

Other modes of transportation

Reflecting limited public transportation options, Albuquerque has an unfavorable transit score of 28. The city’s walk score is an above-average 53. In better news, the city is quite bike-friendly with a bike score of 68.

The city operates eight public parking garages and three surface lots. Hourly rates run $1 per half-hour. Monthly rates in garages are between $36.75 and $84, depending on location. Lots are $36.75 to $47.25 monthly. No toll roads exist in New Mexico. And to put the driving costs in perspective, an average tire balance costs $50.36. That’s $2.57 above the national average.

Albuquerque healthcare prices

Healthcare is pricey no matter where you live. But in the Chihuahuan Desert, prices are a fair bit less painful. The cost of living for healthcare in Albuquerque is a significant 11.7 percent beneath the national average, an over 7 percent drop from a year ago.

That is significantly lower than other larger cities in New Mexico. Both Rio Rancho (2.1 percent over) and Las Cruces (5.5 percent over) exceed the national average. Albuquerque’s healthcare costs are also lower than regional cities, with Lubbock at 5.7 percent lower than the national figure and Tucson (3.6 percent above) and Colorado Springs (2.6 percent above) exceeding it.

Affordability is in individual services. The average cost for a doctor visit is $107.70, nearly $11 below the national average. A trip to the dentist, at $99.70, and an optometrist appointment, for $108.84, are only a buck or two cheaper. An average over-the-counter medication like Ibuprofen is just a few cents below the national average, but prescription drugs like insulin can index around up to $50 less expensive.

Please note prices for healthcare will vary by individual depending on specific healthcare situations.

Albuquerque goods and services prices

Miscellaneous goods and services in Albuquerque also index below the rest of the country. That includes everything from going to the movies to buying toiletries to a salon day. The cost for such items and labor in Albuquerque is 5.8 percent below the national average, down 5.23 percent from this time last year. That is a similar figure to most other larger cities statewide. However, other Cactus State cities like Rio Rancho and Las Cruces experienced an increase of around 8 percent from a year ago.

Some varied items fall well below the national median. A men’s dress shirt, at $28, is around $4 cheaper than the rest of the country. Women’s slacks are almost $5 more affordable. Dry cleaning them with a two-piece suit is three bucks cheaper.

A typical washer repair will run $72, $11 under the national average. And it will average $51 to take your pet to the vet, about $4 less expensive. A few items like toothpaste, tennis balls or a bottle of shampoo run very close to the national averages. But, a men’s barbershop haircut, at $24.14, will make you pony up about $4 more.

The cost to enroll a child in a full-day private preschool or kindergarten in Albuquerque is $650. A year in an international primary school runs a pricey $13,667.

Taxes in Albuquerque

New Mexico does not have a standard sales tax. Instead, it has a Gross Receipts Tax, which is similar to a sales tax but applies to services, as well as goods. The total GRT tax rate in Albuquerque is 7.875 percent, 5.125 percent from the state and 2.75 percent from the city. There’s no GRT tax on grocery items, including candy and carbonated beverages, but only if purchased in person at a store. For taxable items, if you spend $1,000, expect to pay $78.75 in GRT tax.

New Mexico has a graduated individual income tax rate ranging from 1.7 percent to 5.9 percent. There’s no additional income tax from the city or county.

How much do I need to earn to live in Albuquerque?

Advisors often suggest that you spend no more than 30 percent of pre-tax income on housing. That’s good news for Albuquerqueans. Rents for an average one-bedroom fall well below recommended prices based on the local average wage.

The average monthly lease for an Albuquerque one-bedroom is $1,132. Extrapolated to a full year, that’s $13,584. At 30 percent of total income, that’s an affordable rate for someone earning at least $45,280 a year.

According to Payscale.com, the average yearly salary in Albuquerque is $66,000, over $20,000 more than needed to rent an average one-bedroom unit. In fact, an Albuquerque resident making the average salary could afford an apartment leasing for up to $1,650 at 30 percent expenditure.

Want to find out how much an affordable apartment is for you based on your income? Check out Rent.’s handy Rent Calculator

Living in Albuquerque

If you can stand the heat and enjoy laid-back Southwest vibes, Albuquerque is a great place to live and quite affordable compared to its coastal peers. The cost of living in Albuquerque is a bit below the national average in many categories. But, is it the right city for you?

If all the information above makes Albuquerque sound exciting and affordable to you, it’s a great place to find your next home. Check out all the great apartments available in Albuquerque right now at Rent.

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

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We can’t believe another month has already passed us by! Time just seems to be going so fast, especially when getting carried away in beautiful images and stories. We loved all of your blog recommendations last month we checked out all of them – thank you! and are happy to have found more sources of inspiration. It would just be wrong to keep them as our little secrets – so it’s time to add some more daily reads to your bookmarks!!

Ollie & Seb’s Haus is a new blog we came across and we can’t get enough of the imagery and inspiration.

Why we love it: Deborah features light filled interiors, gorgeous storefronts and her own recipes with photography so delicious it will make you run to the grocery store!

12:04 is her birthdate, Olga is her name, art directing is what she does. A must read fashion blog!

Why we love it: Really unique, edgy yet, sophisticated style posts, large images and she’s from San Francisco!

Odessa May Society, named after a grandmother’s journey to the U.S., is a beautiful curation of simple details and pretty finds.

Why we love it: Feminine inspiration, great handmade Etsy finds and roundups of her favorite instagrammers. She’s quite the insta pro herself!

Hither and Thither is a lifestyle blog full of adventure, trips, outdoors and life. Follow Ashley and her family through her beautiful and approachable photography and writing like you’re right there with them!

Why we love it: Her travelogues are so detailed with itineraries, restaurant recommendations and are especially helpful for parents traveling with toddlers. All I have to say is make sure your passport is current!

20 Kvadrat is a Swedish blog full of beautiful imagery, neutral inspiration, art and decor. Not to mention, superb styling!

Why we love it: Original styling in Josefin’s own home, inspiration and art that you won’t find on other blogs or Pinterest!

Find anything you loved? It’s so hard to narrow these choices down every month. They’re all so unique in their own ways. In recognizing our favorite blogs, it has amazed me at how many different ways bloggers can translate beauty.

So, are there any new blogs you stumbled across this month that should be added to the list? Please, share! Looking for more inspiration? Here are other blogs we love!

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Source: apartment34.com

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In a surprising turn of events, refinancing is finishing the year unexpectedly strong, per the latest Origination Insight Report from Ellie Mae.

The company revealed that refinances accounted for 45% of mortgage lenders’ loan volume in November, up from 40% in October. It was the fourth consecutive monthly increase and matches the share seen exactly one year earlier.

Additionally, volume has risen 13% from the dismal 32% share seen in July when refinance activity seemed to be sputtering out.

Despite recent improvement, the refinance share was as high as 47% in January of this year and averaged 53% in 2013. Whether it will climb back to those levels remains to be seen.

The refinance share for FHA loans inched up to 17% from 16% a month earlier but remains abysmal because conventional loans are just a better deal nowadays for most individuals.

The refinance share for conventional loans increased to 56% from 49% last month, and is now at its highest point since January.

Amazingly, the refinance market seems to keep finding more life just when it seems everyone has already refinanced.

You can attribute that to the low interest rates that won’t seem to go away, despite forecast after forecast calling for rates north of 5%. Look for those to be revised once more.

And if rates dip even lower, as they have been recently, we could even see a new mini or major refinance boom in 2015. Just look for oil to keep plummeting and you could snag a new low interest rate.

This is especially helpful at a traditionally slow time of year for purchases, giving lenders something to be cheery about over the holidays.

Refis Are Also Closing Faster

Lenders are also doing a better job of closing refinance applications. The average time to close a refi dipped from 39 days in October to 37 days in November, the shortest length of time reported all year.

Of course, this probably means overall refinance volume is down sharply from previous levels. It also means purchase activity isn’t too hot, whether due to a lack of supply or a lack of interest from prospective buyers. It could also be seasonal.

Speaking of, the purchase share of home loans fell to 54% last month, down from 60% in October. It’s now well off the 67% share seen in July, but remains above the 47% share seen in 2013.

Purchases are taking a little longer to close nowadays, with average length of time to close rising from 40 days in October to 41 days in November.

However, the closing rate on purchases increased to 66.5% last month, the highest level since Ellie Mae began tracking back in 2011. It averaged 60.1% last year.

The takeaway is that lenders seem to be doing a better job closing the applications they bring in. Still, I’m sure they’d trade that for more business in a heartbeat.

Ellie Mae also reported that the adjustable-rate mortgage share of closed loans dipped to 6.1% in November from 6.3% in October. It was as high as 7.6% this year, but remains well above the 4.2% average seen in 2013.

Meanwhile, the 15-year fixed share of funded loans increased to 10.3% last month, up from 9.6% a month earlier. It has been as low as 8.9% and as high as 15% this year.

So it turns out 2014 hasn’t been as bad as many predicted, and the way things are going, 2015 might be pretty decent too.

Source: thetruthaboutmortgage.com

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As the world shifts toward a greener and more sustainable lifestyle, many people are looking to renewable energy sources to help reduce their environmental impact. One of the most popular methods is solar energy, using solar panels to harness the sun’s power. However, most people think solar panels are reserved for houses and businesses with lots of roof space. This isn’t true; the transition to solar is for everyone. 

But can you use solar panels for apartments? In this Redfin guide, we have everything you need to know about using solar energy in your rental. So whether you live in a studio apartment in Tampa, FL, or a 2-bedroom apartment in Brentwood, CA, read on for everything you need to know. 

Can you use solar panels in your apartment? 

Yes, in most cases, you can benefit from solar power in your apartment. However, it may not be as straightforward as asking your landlord to install a solar panel on the roof or buying one yourself. 

Installing traditional rooftop solar panels in an apartment building is often impossible due to space constraints, ownership issues, management, state regulations, and your building’s location. It also may be difficult to use alternative methods of using solar energy, as every state has different laws and programs. However, don’t let these hurdles deter you from investing in renewable energy. 

How to use solar power in your apartment

1. Convince your landlord to go solar

Probably the easiest way to get traditional solar panels for apartments is to talk with your landlord. There is no one way to go about this, and it may not be possible depending on your building’s location. However, if you decide to talk with your landlord, here are some benefits to highlight: 

  • Start by educating your landlord about the financial benefits. Although the upfront cost can be substantial, federal, state, and local incentives can often help offset these costs, and the savings on electricity bills over time can make it a financially sound investment.
  • Solar panels can increase property value and appeal to future tenants. And for residents, solar panels can reduce monthly utility costs. 
  • Landlords can also receive income from surplus energy and gain a reputation as forward-thinking property managers.
  • Solar energy is one of the most sustainable and cleanest sources of energy. By converting their properties to solar, landlords can significantly reduce the carbon footprint of their buildings, contributing to environmental conservation and sustainability.
  • No matter what, make sure to present your case professionally and respectfully. Your landlord will be more likely to seriously consider your proposal if it’s well-reasoned and clearly communicated.

2. Invest in miniature or alternative solar 

Since you likely can’t install a solar panel system on your own, another option is to use miniature or alternative solar power systems. Here are a few of the most popular options. 

  • Portable solar panels: Portable solar panels are another viable option. They’re essentially tiny solar panels that you place in your window. You can move them around to capture maximum sunlight throughout the day and can charge devices like your smartphone or laptop directly or store energy in a portable battery for later use. Portable panels are an excellent choice for renters since they can be taken with you when you move.
  • Solar batteries: Solar batteries can store energy to power your devices and appliances. They may not offer a large benefit, but every effort matters.
  • Solar water heaters: These are a great option if your landlord allows it. They use solar energy to heat water and store it for when you need it and can replace a traditional water heater, depending on your climate. 
  • Solar air conditioners: If you have an area in your home that receives a lot of sunlight, you can use a window-mounted or portable air conditioner to cool a room.

3. Purchase SRECs

Another option is to purchase Solar Renewable Energy Credits (SRECs). SRECs are tradable commodities anyone can earn from generating solar energy or purchasing on the open market. States usually create SRECs to help utility companies meet their renewable energy goals more quickly, but they are also available to the general public through private companies. While SRECs don’t directly reduce your carbon footprint or generate power on their own, they can incentivize solar growth in your state and show your commitment to the environment. 

SRECs aren’t available in every state, and prices vary widely depending on where you live. There is no nationwide governance on solar credits, which can lead to inflated prices and limited impact. Make sure you do your research before choosing to invest.

4. Join a community solar program

Community solar, also known as shared solar or solar gardens, is an increasingly popular option that allows multiple people to benefit from a single solar array. This setup can make solar power accessible to people with limited space and access, such as renters and small businesses. 

Here’s how community solar generally works:

  • A third-party developer, often a solar installation company or a utility, builds a solar array, often on a large rooftop or unused piece of land. This array is usually larger than a typical residential solar panel system and can generate much more power. 
  • States have unique laws limiting the size and capacity of community solar arrays. For example, in Washington State, these arrays can generate a maximum of 1 MW, designed to generate enough power for multiple households or buildings.
  • Once it’s built, individuals or businesses can buy (usually a monthly subscription) a portion of the electricity the solar array produces. A 5% share is fairly typical. 
  • Once the solar array begins producing electricity, you can start saving money because the credit from your share of the solar project offsets the cost of the electricity you consume. Utility companies determine bill credits and generally have regulating power. 

Community solar can be cheaper than individual solar panels because the cost is spread between many people. There are also government programs for low-income and HUD-assisted housing renters to utilize community solar at no extra cost. However, community solar projects are often full and aren’t widely available. 

Pros and cons of solar panels for apartments

Investing in and taking advantage of solar energy as a renter is beneficial, but can be complicated. Here are some pros and cons to keep in mind. 

Pros

  • Reducing your carbon footprint: If you’re able to get your landlord to install solar panels, or you’re able to use miniature solar generators, you are reducing your carbon footprint. 
  • Saving money: If you can convince your landlord to install solar panels for your apartment, you could save money on utility bills. 
  • Investing in your community: Purchasing solar credits and participating in a community solar program can have a big impact on your community. By investing money into renewable energy, you are helping it grow and become more widely available. 

Cons

  • No tax credit: You can’t claim the solar federal tax credit if you use a community solar program or don’t own the property the panels are on. 
  • Few solar options: In many cases, it’s very difficult to utilize solar energy as a renter. Dozens of states don’t offer community solar programs or SRECs, and your building may not receive enough sunlight for a portable panel. 
  • Limited utility savings: You won’t receive anywhere near the financial benefits that your landlord will if they install solar panels. Additionally, community solar and miniature solar solutions offer little to no utility credits compared to traditional arrays. 

Final thoughts on solar panels for apartments

While you may not be able to install solar panels on the roof of your apartment building, there are other ways to take advantage of solar energy and help reduce your carbon footprint. From talking with your landlord to joining a community solar program, there are plenty of options.

No matter your method, do your research and ensure you are following all rules and regulations. And if you’re unable to use any kind of solar energy, consider talking with your local city council, state government, or otherwise to get the ball rolling. Renewable energy is essential to lowering global emissions and slowing climate change, so every effort matters.

Source: redfin.com

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This is a guest post from Mrs. Micah of Finance and Life. Look for a related post later today.

Getting an interest-only mortgage can seem like a great idea when you’re trying to buy a house and can’t afford a down payment (or if you have bad credit). Earlier this week, I read the story of a couple who are celebrating home-ownership under just such a situation. But while they’re happy, odds are that this is actually a disaster waiting to happen.

The Pros

There are two reasons an interest-only mortgage might work out for you:

Reason #1: You’re a house flipper.
No down payment, lower monthly payments for ten years — since you’re flipping, you probably plan to have the house for less than a year. Why bother paying more? Using interest-only means that you can direct more capital into fixing up the place.

And since your goal is to increase the value of the house, you probably won’t have to sell it for less than the mortgage. Congrats. You have an excellent reason to take out an interest-only mortgage.

Reason #2: You plan the stay in the home for all 30 years.
In the end, you’ll spend the same amount of money with an interest-only or a normal mortgage. If you plan to stay in the home, have a well-paying and steady job (perhaps you work for the government and the bureaucracy make you impossible to fire), and want to invest the money you’ll save in the beginning to take advantage of compounding, then get the mortgage if you absolutely must.

The Cons

Here are two reasons an interest-only mortgage is probably a bad idea:

Reason #1: You don’t build equity
Imagine you have a $100,000, 30-year mortgage at 6.25% with the first ten years as interest-only. (The calculators listed at the end of this article can help you run the numbers for different values and rates.) While the money you pay for those first ten years — $62,500 — will have value if you stay there for the full thirty years, it will be little or no better than renting if you move earlier.

Actually, it could be much worse than renting. If you need to sell before the interest-only period is over, you’ll still owe the full value of the mortgage ($100,000 in our example). If you can sell it for more, you come out ahead. But if you sell it for less, you’ll still owe the difference. In today’s housing market, that’s particularly worrying, since the odds are high that your property value will decrease.

So if the house sells for only $95,000, you’ll owe the $5000. When selling your home, there’s always a risk that you’ll lose money anyway, but an interest-only mortgage dramatically increases it. (And these are low numbers — suppose the mortgage is $250,000 and you sell it for $225,000!)

On the other hand, by going fully-amortized during those first ten years, you could build $15,223.87 in equity. That’s more than you’ll save by paying interest-only. Under an interest-only plan, it’s only around the 25-year mark that the equities equalize. Until then, you’d be ahead with the normal mortgage.

Reason #2: The amount due will increase
In this example, having an interest-only mortgage saves you $94.89/month at the beginning. That’s $11,386 in payments over the first 10 years. However, after the 10 years, your payments go up by $210/month. Now you’re paying over $100 more than the amortized rate and you have to find that extra money in your budget.

This might make financial sense, say, if you were in a secure job or field where you could be sure that you’d have the extra money within 10 years. But what if you lost your job (see #1 about having no equity)? Or what if you had more children and expenses? In the world of finance there are few guarantees — except that if you can’t pay the new rate and can’t refinance, you’ll be in trouble.

Looks like a bad deal, doesn’t it?

The Decision

Before you say an interest-only mortgage fits you, think long and hard. Consider the reasons it’s a bad idea for most people. If you’re the one in a million who actually could pull it off, then go in with eyes wide open. And best of luck to you!

Otherwise, I suggest that you avoid these like the plague. Are they better than adjustable-rate mortgages (ARMs)? I don’t know. Possibly, since you should know ahead of time what you owe and what the interest rate will be. But it’s like comparing arsenic and cyanide. You’re best off not taking either.

Source: getrichslowly.org

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Carry trade is a strategy used by some traders who invest in currency markets to take advantage of differences in interest rates. In a carry trade, an investor buys or borrows a security or asset at a low interest rate, and then uses it to invest in another security or asset that provides a higher rate of return.

Carry trades have some clear uses in the foreign exchange market, or “forex” market. Given that they can be used to drive returns, they can be important for investors of all stripes to understand.

What Is a Carry Trade?

In a carry trade, forex traders borrow money at a low interest rate in order to invest it in an asset with a higher rate of return. In the forex markets, the currency carry trade is a bet that one foreign currency will hold or increase its value relative to another currency.

Of course, this investing strategy hinges on whether or not interest rates and exchange rates are in the traders’ favor. The wider the exchange rate between two currencies, the better the potential returns for the investor.

Recommended: What Is Forex Trading?

Even so, a carry trade strategy can be a relatively simple way to increase an investor’s returns, assuming they understand the difference in interest rates. In that way, it’s similar to understanding “spread trading” as they relate to stocks.
💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

How Do You Execute a Carry Trade?

Executing a carry trade can seem nebulous without an example. Here’s a runthrough.

Carry Trade Example

Imagine that the U.S. dollar has a 1% interest rate, but the British pound has a 2% interest rate. A trader could take 100 U.S. dollars, and then invest that 100 dollars into the equivalent number of pounds (according to the exchange rate), and earn a higher return in interest. The discrepancy in interest rates allows traders to take advantage and earn higher returns.

This is a rather simplistic carry trade example, professional traders and investors can engage in complex carry trade strategies, and even employ the use of a carry trade formula to help them figure out expected returns, and whether the strategy is worth pursuing in a given situation.

Rather than simply buying one currency with another, traders often execute a carry trade that involves borrowing money in one currency and using it to purchase assets in another currency. In this scenario, traders want to borrow the money at the lowest possible interest rate, and do so using a weak or declining currency.

That can create higher profits when they close the deal and pay back the borrowed money. In general, carry trade is a short-term strategy, rather than one focused on the long-term.

Recommended: Short-Term vs Long-Term Investments

Is a Carry Trade Risky?

The concept of a carry trade is simple, but in practice, it can involve investment risk.

Most notably, there’s the risk that the currency or asset a trader is investing in (the British pounds in our previous example) could lose value. That could put a damper on a trader’s expected returns, as it would eat away at the gains the difference in interest rates could provide. Currency prices tend to be very volatile, and something as mundane as a monthly jobs report released by a government can cause big price changes.

The greater the degree of leverage an investor uses to execute a carry trade, the higher the potential returns — and the larger the risk. In addition to currency risk, the carry trade is subject to interest rate risk. Given the risks, carry trades in the currency markets may not be the most appropriate strategy for investors with a low tolerance for risk.
💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

The Takeaway

Carry trades are one way for investors or traders to generate returns, although the approach involves some risks that aren’t present in other types of investment strategies. While the carry trade concept is straightforward, it can quickly get complex when institutional investors put it in place.

Carry trades can be advanced trading tools or strategies. For that reason, they may not be appropriate for all investors or traders. If you feel like you’re in over your head, it may be a good idea to speak with a financial professional for guidance, or to do some more homework to further your understanding.

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Source: sofi.com

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Analysis

Mortgage rates ease as Bank of England’s bitter medicine shows signs of working

Phillip Inman

Fixed deals edge down as the City predicts that interest rates are nearing their peak and the UK economy cools

Several of the nation’s biggest lenders cut rates on their fixed mortgage deals last week, in a sign of mounting expectations that the Bank of England may be nearing the end of an aggressive cycle of interest rate rises.

Next week, the Bank is expected to push up interest rates for a 14th consecutive time from 5% to 5.25%, with financial markets betting that they will peak at 5.75% by the end of the year. Many analysts expect this will mark the end of a cycle of interest rate rises that began in December 2021, giving the major lenders some confidence that previous fears of a 6.5% peak were overdone.

Nationwide, Barclays, HSBC and TSB have all announced in recent days that they would be cutting rates on fixed-rate mortgage deals, as competition for borrowers helped to drive down the cost of some deals. The average rate on a two-year fixed mortgage deal edged lower on Friday to 6.81% compared with 6.86% on Wednesday, according to Moneyfacts data.

The turning point in expectations for interest rates came earlier this month, when the latest official figures showed inflation fell more than anticipated in June to 7.9% from an unexpectedly sticky rate of 8.7% in May. Core inflation, which strips out food and energy, and is closely watched by the Bank of England, also fell back to 6.9% from a 30-year high of 7.1% in May.

City economists said the likelihood of declining wage growth (which was 7.3% in the three months to May compared with a year earlier) and further sharp falls in inflation later in the year meant a rise in interest rates in September to 5.5% or possibly 5.75% would prove the high-water mark.

Mortgage providers have bet that rates will peak at a lower point than previously expected, and HMRC figures show that homebuyers have returned to the housing market, ending speculation of a collapse in prices.

Lower mortgage costs correlate with an outlook for the economy that comes close to stagnation. Gross domestic product fell in May by 0.1% after growth in April of 0.2%. Consumer spending has started to slip and retailers are feeling the pain.

The Bank of England, when it considers further rate rises in the autumn, is likely to be only concerned about the tightness of the labour market and persistent wage growth, but there is a growing consensus that business sectors willing to increase wages are about to run out of steam.

Paul Dales, chief UK economist at the consultancy Capital Economics, says: “While there is probably enough inflationary pressure to prompt another hike at the following meeting in September, to 5.5%, we think that a mild recession and an easing in both wage growth and core inflation will prevent further hikes.”

George Buckley, chief UK economist at Nomura, says a change in the make-up of the nine-strong monetary policy committee will mean the peak could be 5.75%. One of the committee’s main critics of steep interest rate rises, the LSE professor Silvana Tenreyro, has left and been replaced by the financial expert Megan Greene, probably pushing it in a more hawkish direction, tending towards higher rates.

Dales says a likely recession will make cutting rates irresistible at the back end of next year. “When rates are eventually cut in late 2024 and in 2025, we think they will fall further than investors expect.”

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Financial markets expect the Bank of England will keep rates above 5% into 2025.

Andrew Goodwin, chief UK economist at the consultancy Oxford Economics, says the economy is likely to experience “maximum pain” over the next six months and the first half of 2024. “There is a hump of people on two-year fixed-rate mortgages that they took out in 2021 and 2022. They will see a huge jump in monthly payments, forcing them to cut back on discretionary spending.

“The labour market will suffer, leading to a fall in wages growth and maybe higher unemployment. For the Bank of England, there will be quite a few signs the medicine is working,” he said.

Topics

  • Interest rates
  • Observer business agenda
  • Economics
  • Mortgages
  • Bank of England
  • analysis
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Source: theguardian.com

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One of the biggest barriers to homeownership is amassing the large down payment necessary to purchase a property.

This is especially true post-housing crisis, with no money down mortgages largely a thing of the past through traditional avenues.

Interestingly, studies have shown that low credit scores are a lot more dangerous than low down payments, though a combination of both could be a recipe for disaster.

And even though there are now conventional loan programs that allow LTVs as high as 97%, along with FHA financing that requires just 3.5% down, many still seem to have trouble coming up with the necessary funds to achieve the American Dream.

But what many prospective home buyers may not realize is that there are scores of down payment assistance programs available to them. And I’m not talking about dodgy private lending companies, I’m referring to legitimate state-run housing agencies.

A new analysis from RealtyTrac and Down Payment Resource revealed that 87% of the properties in the United States qualify for some sort of down payment assistance.

Yes, there are income limits as well, which may prevent some buyers from taking advantage of such financing options, but the limits are often pretty high.

The pair of companies noted that more than 68 million U.S. properties are eligible based on maximum home price limits.

In fact, at least one down payment assistance program is available in every single county nationwide.

And in 2,000 counties nationwide there are more than 10 such programs available to homeowners who actually bother to seek them out.

While these programs appear to be plentiful nationwide, the most can be found in the South, with the West not far behind.

The states with the most down payment assistance programs include California, Florida, Texas, Maryland, and New York.

Homeowners Can Get $12,000 on Average in Down Payment Assistance

The analysis found that the average amount of down payment assistance is around $11,565 across all counties. Obviously it can be substantially more in places where home prices are higher.

Typically, it comes in the form of a Community Second, which is a second mortgage with a very low interest rate or no interest rate at all. And in some cases, it is forgiven as the homeowner makes on-time payments.

These subordinate loans can reduce closing costs from as much as $20,000 to just a couple hundred bucks.

And they can often be combined with a first mortgage from the same housing agency to lower the total mortgage payment even more and/or push the out-of-pocket down payment to zero. Or with FHA/VA financing.

Borrowers can also take advantage of Mortgage Credit Certificates (MCCs), which are federal tax credits that can increase household income by offsetting taxes.

There are also housing grants and other special programs geared toward teachers, firefighters, police, military, and other public servants that make homeownership more accessible.

Just keep in mind that these programs do have many restrictions in place to ensure the assistance falls in the right hands.

That means you often need to be a first-time home buyer who doesn’t make more than the median income for the area in which you’d like to buy.

Additionally, the home should be your primary residence, not an investment property or second home.

You’re also most likely looking at a 30-year fixed-rate mortgage as opposed to anything exotic like an ARM. And a decent credit score may also be a requirement.

Down Payment Resource claims that 24% of mortgage borrowers are denied loans due to insufficient funds. At the same time, these borrowers are eligible for an average of seven down payment assistance programs.

The takeaway here is there are tons of financing options for would-be homeowners that are often never even explored, and many could be missing out simply because they’re not doing the research.

If you’re setting out to buy a home, it might not hurt to look up your state’s housing finance agency (HFA) to see what it offers.

(photo: Cindy Funk)

Source: thetruthaboutmortgage.com