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Apache is functioning normally

Apache is functioning normally

From the daily walk of the Peabody Ducks to the annual Memphis in May World Championship Barbecue Cooking Contest, there are so many unique pieces that make up this Tennessee city.

Memphis is an affordable place to live for renters. The cost of living in Memphis is 13.1 percent lower than the national average, which makes the Home of the Blues more affordable, overall, than nearby cities like Nashville and Little Rock.

Given this lower cost of living, you’ll find plenty of great places to live in Memphis. But, the only way to know for sure is to break down your budget into pieces. Here’s how individual components, that make up the cost of living in Memphis, compare.

Housing costs in Memphis

Memphis housing is pretty reasonable all around. Rents aren’t too high, and housing prices are reasonable. Overall, housing prices in Memphis are 20.2 percent below the national average. This is on par with other Southern cities like Birmingham, though it’s slightly higher than places like Jackson, MS.

When it comes to rental prices, averages are reasonable whether they’re trending up or down. The average one-bedroom rent in Memphis is about $1,000 per month, down 4 percent from last year. For two-bedroom apartments, the average monthly rent is up by 4 percent but it’s still under $1,100 per month.

Home prices are down slightly over last year — the median sale price in Memphis is a reasonable $175,000. By comparison, the median sale price for a home in Nashville is about $465,000.

Finding the best apartment in Memphis

There are so many great Memphis neighborhoods to consider calling home that it may feel challenging to narrow things down. Price and location will play a big part, but it’s also the vibe of the community that can help solidify your choice.

The priciest spot for a one-bed is the up-and-coming arts district of Crosstown. Here the average monthly rent for just one bedroom is about $1,900. This area is a huge draw for young professionals, artists and musicians who join families who’ve called this neighborhood home for a long time.

Two other sought-after neighborhoods that provide a great location while catering to a more artsy crowd are Mud Island and South Main. They feature one-bedroom apartments for an average monthly rent of around $1,500 and $1,200, respectively.

Food costs in Memphis

Almost as big as the music scene, the food in Memphis is second-to-none. Of course, we’re talking Memphis barbecue with its slightly sweet and tangy sauce slathered on a nice rack of ribs in restaurants like The Rendezvous and Central BBQ. There are other signature eats in Memphis (check out Gibson’s Donuts), but nothing stacks up the “Q.”

As good as all the restaurant eats are though, locals can’t eat out all the time. Since groceries run 8.9 percent below the national average though, it’s pretty affordable to eat at home. Even at a tiny increase over last year, most items on your shopping list should remain pretty affordable. For example, expect to pay $1.06 per pound for store-made fried chicken and $1.97 for a dozen eggs. If you need a good side, potatoes average $3.73 per pound, making it affordable to whip together some homemade potato salad.

Utility costs in Memphis

The seasons can get rough in Memphis thanks to muggy summers and wet and windy winters, but overall temperatures aren’t too extreme. It still gets hot and cold at the right times of the year, but you won’t see a lot of snow.

This helps make utility costs a little more affordable on the whole, and 12.2 percent below the national average. Memphis actually has one of the lowest average utility costs in the state, with an average monthly electric bill is $141.05. Nashville is one of the only Tennessee cities that comes in lower, and it’s only by $2.31.

Transportation costs in Memphis

Although not an entirely walkable or bike-friendly city overall, Memphis’ best parts are often extremely walkable. Places around downtown, including Beale Street, are better seen on foot anyway.

Public transportation is also available in Memphis, primarily by bus via MATA. Operating 34 different lines, the adult base fare is $1 per way, and you’re able to purchase a daily fast pass for just $2. For downtown and riverfront access, MATA runs three trolley lines at just $1 per way.

Though it is possible to live in Memphis without a car, many residents own one to make it easier to road trip as well as get to the outer suburbs.

When it comes to city parking, locals can pick between meters and garages. The parking garages around town can range greatly in price, from as little as $4 to upward of $25. Meters have an hourly cost of $1.50.

All combined, transportation costs in Memphis are 6.9 percent below the national average, an increase of 4.2 percent over last year.

Healthcare costs in Memphis

Budgeting for healthcare as a part of your cost of living in Memphis is challenging. Not only is everyone’s medical situation different, but things can change from month to month. Having insurance helps, but it’s also worthwhile to know what average costs are like without it.

In Memphis, healthcare costs are 9.4 percent below the national average. This is pretty close to normal when compared to other cities in Tennessee and pretty close to cities, like Birmingham, in neighboring states.

This average keeps doctor’s visits in a pretty reasonable range, assuming you don’t have insurance to pay the costs. Expect to pay an average of $99.72 per doctor’s visit, $78.60 to see the eye doctor and $105.40 for a trip to the dentist. When it comes to prescription medications, the average cost (without insurance) in Memphis is $465.99.

Goods and services costs in Memphis

Not all the pieces that make up the cost of living in Memphis are functional and necessary. You also have to put a little fun into the budget, and that’s where goods and services come in. They’re the thing you enjoy doing, you want to do, but if you ever needed to cut back, could do without.

Goods and services are what make a night out on Beale Street possible, among other fun activities. In Memphis, the overall cost of goods and services, lumped together, is 10.1 percent below the national average. That could mean more money in the budget for fun, as long as you don’t have too much.

How does this impact your favorite to-do’s? Well, in Memphis, a six-pack of beer averages out at $9.77, a movie ticket is $13.08, that pizza you’re craving is $10.73 and a haircut before that big night out is $18. Prices coincide with other cities in Tennessee, sometimes being a little bit more or a little bit less, but always relatively close.

Taxes in Memphis

The state sales tax in Tennessee is 7 percent, but each individual county and city can add on additional taxes. That said, you’ll pay 9.75 percent in sales tax in Memphis, the highest total rate in the state (and the most common.)

To think about this rate in dollar amounts, for every $1,000 you spend shopping for clothes, or buying furniture for your new apartment, $97.50 goes straight to taxes.

How much do I need to earn to live in Memphis

Even with a better understanding of the cost of living in Memphis, it’s hard to really know how much you need to earn to live in this fun city. A good place to start digging into your budget though is with rent.

Most experts agree you should spend about 30 percent of your annual income on rent, so to afford that average one-bedroom price of $1,000, you’d need a yearly salary of about $40,000.

Is this easy to find in Memphis? Well, given that the median household income is slightly higher at $41,864, your chances look good. To get the numbers exact though, check out our rent calculator.

Living in Memphis

Life in Memphis is not only affordable for many, but also fun. Memphis is a city full of things to do, with decent weather and a vibrant cultural scene. Its deep musical roots and delectable food are simply the icing on the cake for this great place. With so much to explore, deciding to live in Memphis is most likely going to be an easy decision.

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 November 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

Apache is functioning normally

Apache is functioning normally

If you’re like us, you’re constantly looking for fresh ways to give your space an updated look. But unlike clothing, the whole “out with the old, in with the new” approach isn’t as practical or realistic when it comes to room decor. That’s why one of our go-to room makeover tricks is to play with rugs. We’re always adding or swapping them, but recently we’ve been kind of obsessed with layering them!

There are a few different approaches you can take when it comes to rug layering. First, there’s the tried and true combination of a bold patterned or textured rug with a neutral base. Layering also works when you take a more organic shaped piece like a cowhide! and pair it with a traditional rectangular rug love this one!. Another option is to choose rugs of various sizes and patterns, but that are of the same general color palate–like what’s happening in the image above. So good. 

If you’re craving even more design tips and tricks, click HERE!

Copy by Editorial Intern, Ali Hartwell // Image via Yatzer

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Source: apartment34.com

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As the world grapples with reducing the effects of climate change, people are looking to their homes for solutions. Investing in renewable energy by using solar panels or wind turbines is one option. Another is lowering the total amount of energy you use by switching to efficient appliances and using less water. Yet another method is by starting a home garden and using a living roof. But what if you could accomplish all of this with one house? You can with an Earthship home.

Earthship homes redefine sustainable living by bringing it to your home. With an Earthship, your entire house is lowering your carbon footprint and helping pave the way toward a sustainable future. This home style uses renewable energy, indoor gardening, on-site water treatment, and passive heating and cooling to be as climate-neutral as possible. 

So whether you’re in the market for a new house in Wilmington, NC, or are looking to build a new home in Charleston, SC, this Redfin article has everything you need to know about Earthship homes. Are they right for you? Read on to learn more. 

What is an Earthship home?

An Earthship home, or Earthship, is a type of sustainable home that is entirely self-sufficient and designed to have a minimal to no environmental impact. These unique homes are typically built using natural and recycled materials, and are designed to use the natural resources of their environment to provide all human needs. These include: food, shelter, energy, clean water, garbage management, and sewage treatment. Earthship homes are intended to allow people to live completely free from municipal utilities, sometimes called “off the grid.” The most common type of Earthship is the Global Model Earthship.

Earthship homes can function in most places around the world. However, because of their design and environmental requirements, Earthship homes aren’t right for all climates; they work best in seasonal, subarctic regions of the world. Tropical and bitterly cold areas are often not a good fit due to excess cost or overwhelming maintenance demands.

History of Earthships

Earthship homes were created by architect Michael Reynolds in the 1970s, around the time of the environmental movement and first Earth Day. Reynolds was concerned about the amount of trash in the environment and the lack of affordable housing, and wanted to create a solution. 

Earthship homes promote personal autonomy, environmental responsibility, and affordability, aiming to provide sustainable housing for all. The first Earthship homes were built in New Mexico, and have undergone many design changes up to the present day. 

Principles of Earthship homes

The Earthship concept has six design principles that are focused on eliminating the home’s environmental impact and promoting sustainable living. 

1. Natural and recycled materials

Earthships are constructed using a variety of natural and recycled products. One of the most common materials is used car tires, which are packed with earth and then stacked to form strong, insulating walls. Other common materials include recycled cans, bottles, and reclaimed wood. This not only reduces the home’s environmental impact, but also gives them a unique and recognizable appearance.

2. Passive heating and cooling 

Earthships are designed to take advantage of natural climates to provide a comfortable indoor environment without traditional heating or cooling systems. Earthships have thick walls typically made from natural and recycled materials, providing thermal mass which naturally regulates the indoor temperature. The buildings are also often partially covered with soil or even built into the side of a hill, which further helps stabilize the home’s temperature. 

Additionally, Earthship houses are often oriented specifically to allow the sun to heat the interior during the winter, while using overhangs and other shading techniques to prevent overheating during the summer. 

3. Solar and wind energy

Most Earthships are usually equipped with solar panels or wind turbines to generate electricity, making them independent of the conventional power grid. The electricity is stored in a bank of batteries and then used as needed for lighting, appliances and other electrical requirements. Inside, most homes have efficient appliances and LED lighting to help to reduce electricity use.

4. Water harvesting

Earthships capture and store rainwater and snowmelt from their roofs, making them ideal for fairly wet climates. The water is filtered and used for drinking, cooking, and bathing. After being used once, the water becomes greywater and is reused for irrigation. The remaining water is then treated and used for flushing toilets. After this, it becomes blackwater, which is then treated and used for landscape irrigation.

5. On-site sewage treatment

Instead of being connected to a municipal sewage system, Earthship homes treat their own waste water. Most homes accomplish this through a mix of greywater and blackwater systems. Greywater (water from sinks, showers, etc.) is typically filtered through indoor gardens and used to grow food. Blackwater (sewage) is usually treated in an anaerobic digester or a constructed wetland, with the goal of reusing it for landscaping.

6. Food production

A key part of Earthship architecture is self-sustaining food production. Earthship homes include internal greenhouses, which are used to grow a variety of plants, including fruits and vegetables. Greenhouses also aid in heating and greywater treatment. The combination of direct sunlight, greywater irrigation, and a controlled climate makes it possible to grow healthy food year-round. Some designs also incorporate outdoor garden spaces and even aquaponic systems.

Pros and cons of Earthship homes

In theory, Earthship homes offer reduced environmental impact without sacrificing many modern amenities. However, there are important pros and cons to consider before building a new Earthship house.

Pros

  • Sustainability: Earthships are built largely from recycled and natural materials, which reduces their environmental footprint. They also incorporate renewable energy systems, water harvesting, and on-site waste treatment, which further enhances their sustainability.
  • Self-sufficiency: Earthships are designed to be largely self-sufficient. They can generate their own electricity, collect and purify their water, manage their sewage, and even produce food. This reduces their reliance on public utilities and can provide security in case of a utility outage.
  • Energy efficiency: The design of Earthships allows for natural temperature regulation, reducing the need for artificial heating and cooling. The use of solar and wind energy for power contributes to energy efficiency and further reduces the carbon footprint of the home.

Cons

  • Regulations and permits: Because Earthships deviate from traditional construction methods, they can face challenges with local building codes and regulations. Obtaining the necessary permits can be a difficult and time-consuming process.
  • Initial investment: While Earthships often save money in the long run through reduced utility costs, the initial investment can be high, especially when considering the cost of land, materials, and labor. However, construction costs are dramatically lower than a traditional house, and usually an entire community helps out. 
  • Labor-intensive: Earthship construction and maintenance can be labor-intensive, especially if using traditional Earthship building techniques, such as pounding dirt into used tires. This can add to the time and cost of building.
  • Not suitable for all climates: Earthship homes are a financially viable and environmentally sustainable home style in most parts of the world, including dry, humid, and subarctic climates. However, they are impractical in warm and wet climates.
  • Challenging to sell: Because of their unique designs, challenging upkeep, and typically remote locations, Earthship houses can be hard to sell. However, recently, they’ve been gaining value and are becoming a more popular option. 

Earthship homes vs. earth homes

Earthship homes and earth homes (sometimes called earthen homes) are two home styles that are designed to reduce your carbon footprint. While they have similar names, they are often entirely different from each other. Let’s break this down.

Earthship homes are a style of home use entirely renewable, recyclable, and natural materials. They must adhere to a strict set of principles such as passive heating and cooling, renewable energy, and water harvesting. Some people use a significant amount of earthen materials during construction, but it’s not necessary.

Earth homes, or earthen homes, are homes that are built using a significant amount of earthen materials, often built into the earth, such as the side of a hill or buried underground. Importantly, earth homes don’t have to adhere to certain design principles and may not be as environmentally friendly as other home styles. However, many earthen structures are environmentally friendly. 

Final thoughts

Earthship homes offer a unique and reliable way to reduce your carbon footprint, and are proof of the possibilities of sustainable architecture. While building and maintaining an Earthship can pose challenges, the rewards can be very rewarding. Exploring the potentials of Earthships invites people to reimagine their homes and see the part they play in slowing the effects of climate change.

All images are credited to Earthship Biotecture, founded by Michael Reynolds.

Source: redfin.com

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If you’re considering a move to Boise, Idaho, it’s important to weigh the pros and cons before making a decision. Known for its natural beauty, outdoor recreational opportunities, and growing urban scene, Boise offers a unique living experience. Whether you’re looking on Redfin to buy a home in Boise or rent an apartment, we will explore ten key aspects to help you determine whether living in Boise is the right place for you.

1. Outdoor recreation and scenic beauty

Boise is surrounded by stunning natural landscapes, including the Boise Foothills, the Boise River, and nearby mountains. The city is a haven for outdoor enthusiasts, offering opportunities for hiking, biking, skiing, fishing, and whitewater rafting. With its vast network of trails, parks, and open spaces, Boise provides easy access to nature and encourages an active lifestyle.

2. Tight-knit community

Boise has a strong sense of community, with friendly and welcoming residents. The city fosters a community spirit, and you’ll often find local events, farmers markets, and neighborhood gatherings that bring people together. The community involvement and friendly atmosphere contribute to a positive living experience.

3. Booming job market and economic growth

Boise has experienced significant economic growth in recent years, attracting a range of industries and job opportunities. The city is home to major employers in sectors such as technology, healthcare, education, and government. The booming job market and a lower-than-average unemployment rate of 3.6% compared to the national average of 6%, make Boise an attractive place for those seeking career prospects.

4. Affordable cost of living

Compared to many other cities in the United States, Boise offers a relatively affordable cost of living. The average cost of living in Boise is 7% higher than the national average. The median home price in Boise is $487K compared to the national average of $408k, and rental rates in Boise are $1,637 compared to the national average of $1,393. These prices and daily expenses are lower than in larger metropolitan areas such as Seattle, WA where the average home price is $835,000. This affordability allows residents to enjoy a high quality of life without breaking the bank.

5. Cultural and arts scene

Boise has a vibrant cultural and arts scene, with numerous galleries, theaters, and performance venues. The city is home to the Boise Philharmonic, the Boise Art Museum, and the Idaho Shakespeare Festival, which offer a range of cultural experiences throughout the year. You can immerse yourself in diverse arts and entertainment offerings, from live music performances to art exhibitions.

6. Scarce public transportation options 

Boise’s public transportation system is still developing, and it may not be as comprehensive as in larger cities. While the Valley Regional Transit system provides bus services, the coverage and frequency may not meet the needs of all residents. Having a private vehicle is often necessary for convenient transportation within the city and exploring the surrounding areas.

7. Extreme weather conditions

Boise experiences a wide range of weather conditions throughout the year. Winters can be cold, with occasional snowfall, while summers can be hot and dry. The temperature variations may not be ideal for everyone, and individuals who prefer milder climates may find the extremes challenging to adjust to.

8. Increasing population growth

Boise has been experiencing rapid population growth in recent years, as more people discover the city’s appeal. Boise County’s population grew 15.5% from the 7,005 people who lived there in 2010. For comparison, the population in the US grew 7.3% during that period. While this growth brings economic benefits and a thriving community, it also poses challenges such as increased traffic congestion, higher housing demand, and potential strains on infrastructure. As the city continues to grow, residents may need to adapt to the changing dynamics of a growing population.

9. Limited major metropolitan amenities

While Boise offers a range of amenities and services, it may not have the same options and depth as larger metropolitan areas. Some individuals may miss certain big-city amenities, such as major sports teams, an array of high-end shopping options, or a vibrant cultural scene. However, Boise’s charm lies in its smaller community feel and access to outdoor recreation.

10. Limited air travel options

Boise’s airport, the Boise Airport (BOI), serves the city and the surrounding region, but it may have limited options for air travel compared to major hub airports in larger cities. While the airport offers connections to various destinations, the number of direct flights and airlines operating at the airport is limited. This can potentially result in fewer options and higher prices for certain routes, as well as longer travel times for international or less common destinations. If you frequently travel by air or require extensive connectivity, the limitations of air travel options in Boise may be a consideration.

Deciding whether Boise is a good place to live requires careful consideration of its pros and cons. By evaluating these factors against your personal preferences, lifestyle, and priorities, you can make an informed decision about calling Boise your next home.

Source: redfin.com

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Professional investors might be tapering down their home purchases, which could be a good development for frustrated homebuyers who find it hard to compete with investors’ lofty, quick-close, all-cash offers.

Investors who typically rent out their properties to tenants purchased 8.2% of homes in December 2022, according to the Realtor.com® Spring 2023 Investor Report. That was down from the peak in February 2022 when they bought up 8.9% of homes on the market. However, it was a bit higher than in December 2021.

The report suggests investors took a bit longer to respond to surging mortgage interest rates than homebuyers did as the majority made all-cash offers.

The report focused on investors who purchase property to hold and rent out, and excluded home flippers as much as possible.

“We have seen that investor activity has started to come down, which means that the typical homebuyer would be competing with fewer investors,” says Hannah Jones, an economic data analyst at Realtor.com. “We heard this over and over during the [COVID-19] pandemic. A family is looking to buy a home but they got outbid by investors.”

From January to June 2022, investors made up 8.5% or more of all home sales. But by June, mortgage rates were pushing higher, rents appeared to have peaked, cutting into potential landlord profits, and “the economic outlook became more uncertain and fears of a possible recession loomed,” the report states.

Notably, it’s not just homebuyers who are better able to compete now.

Smaller investors, typically those with fewer than 50 properties, are also buying up more homes since the larger ones pulled back last summer. In December, mom-and-pop real estate investors made up 72.8% of all investor purchases, up from a low of 52.6% the previous October.

Even though investors and first-time and other homebuyers might want the same properties, they have vastly different motivations and considerations, Jones says.

“When it comes to making a decision to buy a home, a typical family is considering, ‘Do we need to buy now, and can we afford to buy in the place that we want?’” says Jones. “It has a lot more to do with personal circumstance.”

In contrast, investors are thinking more about their return on investment—both in terms of buying and later selling the property, as well as how much rent can be collected on it. Investors also have more access to cash, whereas households often depend on getting a mortgage.

Those differences can be seen starkly in purchase activity in 2022. Investors accounted for more of the purchases in large part because regular homebuyers pulled back as mortgage rates shot up. Through the entire year, noninvestors purchased 16.6% fewer homes compared with 2021, while investor purchases were up 6.4%.

It took until midyear—when both home prices and rents peaked—for investors to start pulling back.

“Once prices got so high, the return on investment became a little dicier for investors,” says Jones. “They’re no longer as incentivized to be competing as much as they were. And as rents cooled, the value proposition weakened.”

Today’s investors are chasing the same thing as many homebuyers: lower prices. In 2022, 12.2% of all home purchases in the South were by investors, as were 9.3% of all purchases in the Midwest. These two regions generally offer lower home prices than the Northeast and West.

“Affordability is driving so much of the market now,” Jones says. “The traditionally affordable areas are continuing to see more investor activity. But they’re also seeing more activity from traditional homebuyers.”

To come up with its findings, Realtor.com looked at deed records f0r single-family homes, condos, townhomes, and row homes from January 2000 to December 2022. Data was national as well as in the 263 metropolitan areas with more than 100 investor sales in 2022.

Realtor.com analyzed only absentee owners with a name that includes “LLP,” “LP,” “LLC,” “GP,” or “TRUST” and excluded keywords and sales that were likely related to homebuilders, relocation companies, government bodies, and financial institutions. Multifamily buildings, large home-flipping businesses, and iBuyers were not included in the analysis. Small investors not registered under a company name, generally making up more than a third of individual investors, were also excluded in this report.

Source: realtor.com

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Yesterday, as I was otherwise occupied (I spent five hours writing a post about programmable thermostats, a post nobody will even like!), the conversation on Donna Freedman’s article got a little cranky. Donna wrote about pinching pennies on some things so that she could splurge on others. In Donna’s case, that meant a trip to England.

Tyler K., who’s always a little cranky, wrote in response:

I’m just waiting for the post where someone’s passion, the thing they’re willing to scrimp on everything else so that they can afford, is a Range Rover. Or anything else but travel, really…It’d be fantastic to see someone write about not going to Europe so they could buy a luxury SUV…

The Other Brian expressed his frustration, too:

I agree with Tyler 100%. I’m pretty sure the person that wrote that post would get absolutely BLASTED in the comment section for their prioritization of Stuff over experiences…

And Jane, who is usually mild-mannered, chimed in:

I would love for someone to actually have the courage to write a reader story or guest post about how they scrimped and went without for a big screen television! Why is that any less valid than saving for a trip to Paris? I’m sure everyone would say that it is just as valid and cite J.D.’s mantra “Do what works for you.” But let’s be honest — there is a pretty obvious privileging on this site and others of certain types of ways to spend your money. Travel is one of the ones that people categorically praise.

First of all, I’m as tired of travel articles as everyone else. Yes, it’s one of my pet topics, but we’ve featured it a lot around here lately. Time for it to take a back seat for a while. Second, I think travel gets praised a lot because people enjoy it. For years, I heard people extolling the virtues of travel, but until I tried it, I didn’t really understand.

That said, Tyler, Jane, and The Other Brian have a valid point. We do talk a lot about Experiences here — but I think that’s because in Real Life, so much attention is heaped upon Stuff.

Stuff isn’t evil (though too much of it can certainly become a burden). Maybe it’s time for a little reality check…

How to Spend Your Money

Jane is right: My gut reaction is to cite my motto: “Do what works for you.” Because that’s what it’s all about. If you’re out of debt and meeting your savings goals, spend your surplus on whatever you want.

  • If you want a big-screen television, buy a big-screen television.
  • If you want a Range Rover, buy a Range Rover.
  • If you want a surfboard, buy a surfboard.
  • And if you want to travel, travel.

I don’t care what you spend your money on, and neither should anyone else. Travel isn’t inherently better than television, and I’m not arguing that it is. (For me, travel is better than television, but maybe not for Jane.)

I spend plenty of money on Stuff. In the past two years, I’ve bought a used car, a new bike, some nice furniture, season tickets to the Portland Timbers, and more comic books than a grown man really needs. (Trust me: If I’m buying all these comic books, I’m not about to judge you for buying a television!) I’ve also paid for an expensive gym membership and traveled to nine other countries.

I’m careful to avoid debt and meet my savings goals, but I spend my surplus on Experiences and Stuff. Both have value.

And Donna, who just wrote about eating lunches of cheese and crackers so she can afford to travel the U.K.? Well, Donna’s willing to pay $9 for half a dozen cupcakes. Is that frugal? Of course it is! Well, maybe not frugal, but it’s certainly a reasonable expense. Donna can afford it, and it makes her happy.

There’s no one right way to do this. Donna splurges on cupcakes. I splurge on comic books. Maybe you spend on cable television. So what? If these are conscious decisions and we can afford it, there’s nothing wrong with buying Experiences or Stuff. Or both. (After all, that’s why we scrimp and save.)

What Do YOU Splurge On?

Financial writer Greg Karp recently dropped me a line. “I’m doing a column on what people splurge on,” he said. “Any thoughts?” I wrote back to share my main splurges: travel, travel gear, fitness, and computers.

I did a similar survey of personal-finance bloggers almost three years ago. “What do you splurge on?” I asked. Free Money Finance spends on cycling gear. Trent at The Simple Dollar splurges on videogames. And SVB from The Digerati Life buys stuff for around the house. Most of the people I polled spend on experiences: especially food and travel.

What about you? How do you spend your money? Assuming you have some sort of surplus after saving, do you focus on Experiences or Stuff? Do any of these purchases ever make you feel guilty? Or do you see this spending as a reward for making smart financial choices? (I used to feel guilty, but now I see spending as a reward for doing the other things right.) Chime in with your comments.

And, hey — if you want to write a reader story about how you saved for a boat or a television or a Range Rover, please send it in!

Source: getrichslowly.org

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A house is the most expensive thing most of us ever will purchase. If you plan to stay put for some time, you could be paying on your mortgage for the next 15 to 20 years. But as any homeowner knows, expenses don’t stop at the purchase price and mortgage interest. You’ll also pay a small fortune in insurance, upkeep, and repairs over the years.

This is what makes it so important to fully understand the process of buying a home, especially when it comes to property inspection. With so many features and systems, there are any number of things that can break or malfunction in your house. Unlike a faulty appliance that you can take back to the store for replacement or refund, once you sign a contract on a home, there’s little recourse should something go wrong.

According to the National Association of Realtors, April through July typically outpace the balance of the year in home sales as people try to get settled before the new school year begins. If you plan to purchase a home soon, make sure you pay careful attention to the property inspection process to save both money and headaches.

The Purpose of a Property Inspection

A property inspection report is a list of issues with the property, such as roof damage or a crack in the foundation. After inspection the buyer has the opportunity to negotiate with the seller and reach an agreement to either repair the property or to lower the sales price to compensate the buyer for the cost of the repairs. Alternatively, the seller can decide to sell the home as-is, in which case he or she is declining to make repairs or lower the sales price, and the buyer must decide whether or not to buy the home at the original agreed-upon sales price.

You may have decided that the property is your dream home, but the property inspection is a much-needed reality check that will point out flaws of which you might not be aware.

Important Note

New houses still need an inspection!

You might think a new house is perfect, but that’s far from the truth. In fact, new homes can be even more dicey because they haven’t undergone a few inspections like the typical resale house.

When I was in real estate, I mentored with an incredibly knowledgeable agent who would try to talk her clients out of new homes (which often pay agents exponentially more because of builder bonuses). If they still wanted a new house, she would recommend additional inspections at various points in the construction process, and she’d show up for every single one.

During one inspection, she walked into the master bathroom. She noticed something was missing, and asked the builders to come in and see if they could figure it out. No one had a clue. Turns out they hadn’t put in plumbing for the toilet.

Review the Seller’s Disclosure Notice

The first step in the property inspection process is to review the seller’s disclosure notice, a form filled out by the property owner that outlines their knowledge of the properties present condition. If you’re working with a real estate agent, he or she can get the disclosure statement from the seller’s agent. Otherwise, you can contact the seller’s agent, or if the property is for sale by owner, you’ll get the notice from the seller directly.

Sellers are required to include everything they know about their property. If, for example, the home was previously under contract, but the potential buyer walked away because a property inspection found major structural damage, the seller is required to include that in the seller’s disclosure notice.

As the buyer it’s particularly helpful because if the house will require major structural repairs, and you’d rather pass, you can walk away from the property without having to shell out cash for your own property inspection to reveal the same issues.

Hiring an Inspector

If you carefully reviewed the sellers disclosure and you’re ready to move forward, the next step is to find an inspector.

Rather than firing up your Internet browser and doing a Google search, contact people in your network to get referrals. Who has purchased a house in the past several years? Do you know anybody in the real estate industry? If you have a buyer’s agent, he or she also should have at least three names of inspectors for you to consider.

After you’ve collected a small list of names, interview each candidate, asking questions including the following:

  • Are you licensed (not required in all states)?
  • Are you a member of a professional organization, such as the American Society of Home Inspectors?
  • Do you have errors and omission insurance?
  • What kind of ongoing training and education do you receive?
  • Do you specialize in certain types of properties? (For example, new homes and certain beachfront properties might need a specialist.)
  • What will the inspection cost?
  • If hired, how soon can you give me a property inspection report?

Finally, ask for a sample inspection report and see if it includes detailed descriptions of features and flaws in the home, which give more information about the property than a basic checklist.

It’s important that you make time to attend the inspection of the home. Besides learning more about your AC and where the fuse box is located, believe it or not, you might find issues that the inspector would normally miss. For example, an inspector won’t check underneath every rug in the house, but you can, and you might discover a major crack in the concrete floors.

Tip: Though the property inspection report will be invaluable after you purchase a home — it can serve as an agenda for which maintenance and repairs are highest priority — you can make it even more useful by filming the inspection. Don’t make yourself a nuisance, but tag along and film as the inspector goes from room to room. (You’ll probably want to let her crawl under the house on her own, though.)

Negotiations

Once the property report is finished, carefully read it. Many people don’t.

It can be disheartening to see so many things wrong with your “dream” home, but every home will have issues. Some are easy and inexpensive to fix, and it’s not reasonable to ask a seller to get a property in perfect condition. Typically buyers will ask that a seller take care of any health and safety concerns; structural damage; deferred maintenance, such as having the air-conditioning system serviced; or problems that require opening the wall, which often reveal much larger and more expensive problems.

Remember that should negotiations go downhill and you want to walk away from the property, the inspection contingency will allow you to do so.

If there are only minor issues with the house, however, typically buyers continue with the original contract. After the contract is finalized, it’s fairly certain the buyers are about to become the new owners.

As you can see, the process of a house inspection can have a major affect on a buyer’s finances for years to come. If you’re in the market for a new home, don’t gloss over the inspection report or assume that your agent will show up for you on inspection day and handle any issues. Stay involved in the process, even if you have to ask a million questions along the way. As J.D. often says, nobody cares more about your money than you do.

Source: getrichslowly.org