Worth it or not Worth it?

Good article with short answers about common financial questions.

Jack Otter, Executive Editor of CBS Money Watch, tackles these issues in his book, Worth It… Not Worth It? In an easy-to-digest format, he sheds light on some of the most complicated personal finance decisions.

 1. Borrow for college or don’t go?

“As financially painful as college can be, not going to college is even worse,” Otter writes. So before you sign that loan, a better question might be: How much college can I afford? He suggests considering the earning potential in the student’s chosen field, and emphasizing quality of education over prestige. And if you do borrow, stick to subsidized loans.

2. Use a credit union or a bank?
“Credit unions can do just about everything a bank does, and in almost every instance, they will charge you less and pay you more,” says Otter. On average, credit unions charge lower fees on ATM withdrawals, lower rates on home equity loans and auto loans, and pay higher rates on savings accounts, CDs, and money markets.

3. Date a co-worker or date just about anyone else?

Otter emphasizes that when you’re first starting out, you just shouldn’t go there. There’s too much at stake. But if you’re over 30, it’s a safer bet to at least consider. After all, he says, he met his wife at the office and adds, “a relationship built on common professional interests can be a marvelous thing.”

4. Buy or rent a house?

If you’re ready to settle down, now’s a good time to buy.

5. Fixed rate or adjustable mortgage?
Go with a fixed rate mortgage. With rates this low, Otter says you should lock it in without looking back. “While rates probably won’t rise immediately, we’ve probably seen the lows. Locking in with a fixed rate now could be one of the best financial decisions you ever make.”

6. Buy or lease a car?

Buy a car. Otter’s take on leasing: It’s “like always going to the more expensive restaurant, or making sure you never, ever, pick up an item at the sale prices.” He says you’re essentially paying for the vehicle to depreciate. “To put it bluntly, most people who lease are paying lower monthly payments so they can drive a car they could otherwise not afford. And if they aren’t setting money aside, and insist on a new car every three years, they’re going to get stuck in a leasing cycle because their budget and lifestyle won’t allow them to ever afford to buy one.”
7. Hot mutual fund or a cheap fund?
“Here’s a secret that the financial industry really doesn’t want you to know: The cheaper the mutual fund, the better it is,” writes Otter. He says the lower a mutual fund’s fees are, the better your returns.

8. Cash-back or rewards credit cards?

Generally speaking, Otter says cash-back is the way to go – these cards usually pay back about 1 percent of your purchases. You’ll especially want to avoid rewards cards if you carry a balance. Rewards cards “charge higher interest rates, and you’ll pay far more in interest than you’ll ever get in rewards.”

9. Give kids allowance or pay for chores?

Should you give kids an allowance just for being your children, or have them earn the money through chores? Otter recommends giving a small allowance – between half and twice a child’s age in dollars. You can also consider dividing the allowance up into thirds: one for spending, one for saving, and one for charity. Then, pay for bigger chores – like weeding the garden.

The WOW factor

As we look back on 2012, we see a lot of similar patterns to previous years.

Sure, home prices have dropped. But if the home you are selling has dropped in price, then so has the home you want to buy. If you want to move on, you have to look at the whole picture. Also, consider if your next purchase is in an area that will probably be a better investment than where you are currently located.

Many buyers do not understand this.

It is not what you think your home is worth, it’s what the buyers think it is worth.

If you don’t agree with this, then you shouldn’t be selling your Home.

If you want top dollar and you want to sell your home within a couple months, then your home has to have some WOW factor to it. There is too much competition out there in this buyers market.

Top dollar is defined as the best possible price based on what similar homes have sold for, what buyers are willing to pay and what appraisers think it is worth.

We Sold over 60 homes this year, and the ones that got top dollar were the ones with the WOW factor.  The Homes that were missing this WOW factor, sold only if they were priced thousands and thousands of dollars less. If your home hasn’t been updated, you have to find a buyer willing to do the work, then the price has to be appealing enough for them to make it worth their while.

It may be very expensive to update your home in one shot. Most cannot afford to do this in a short period of time. The bottom line is you have to do some updating to your home every year, so when when you decide to sell, your home will be in WOW factor condition, with very little cost getting it ready for sale.

Ah, Arizona!

Ah, Arizona

The Devil wanted a place on Earth 

Sort of a Summer home

Then he gazed on his earthly kingdom

A place to spend his vacation

Whenever he wanted to roam.

 So he picked Arizona                                                                                                                                                                                                       A place both wretched & rough                                                                                                                                                                       Where climate was to his liking                                                                                                                                                                            And cowboys hard & tough 

He dried up the streams & canyons

And ordered no rain to fall

He dried up the lakes and valleys

Then baked & scorched it all

Then over his barren country

He transplanted shrubs from hell

The cactus, thistle & prickly pear

The climate suited them well

Now the home was much to his liking                                                                                                                                                                      But animal life he had none                                                                                                                                                                                         So he created crawling creatures                                                                                                                                                                     That all mankind would shun

 First he made the rattlesnake                                                                                                                                                                          With its forked poisonous tongue                                                                                                                                                            Taught it to strike & rattle                                                                                                                                                                                  And how to swallow its young

 Then he made scorpions & lizards                                                                                                                                                                And the ugly old horned toad                                                                                                                                                                               He placed spiders of every description                                                                                                                                                     Under rocks by the side of the road

Then he gazed on his earthly kingdom                                                                                                                                                                      As any creator would

He chuckled a little up his sleeve

And admitted it was good

Twas summer now & Satan lay

By a Prickly pear to rest

The sweat rolled off his swarthy brow

So he took off his coat & vest

“By golly,” he finally panted

“I did my job too well,”

“I’m going back where I came from,

Arizona is hotter than hell.”

How is the NW Indiana Real Estate Market Doing?

Q. How is the NW Indiana Real estate Market doing?

A.  The Indiana Real estate market has slowed down compared to a few years ago, but it still remains good. Homes that are in excellent condition with updates & priced in the    proper market range, are still commanding top dollar.   

New construction is the toughest competition that sellers will face.  Buyers love NEW, so keep your homes updated and your investment will be rewarded.

We offer complimentary Market evaluations. This evaluation would include what your home would most likely sell for in today’s market and what your NET Profit would be. We also provide our opinion of what you would need to do to get your home in top selling condition. We are also experts in the coordination of your sell with your new purchase.

Feel free to give us a call. Our office is right down the street in Schererville on Rt 30.

No one would know the local market better than a Local Real Estate Company.

Especially a company with the Power of our Name backing you!  Coldwell Banker !

Cathy & Jim Higgins, Real Estate Sales Team.   We Sold over 100 Homes the Past 2 Years, For a Reason! 

Cheap Security Measures

1. Don't Sleep Alone
If you're sleeping solo these days, take your car's remote control to bed with you. If you hear suspicious noises, push the remote's "panic" button and let the alarm scare away intruders.

2. Fake It

Pretend you're home watching "Downton Abbey" and deter burglars with FakeTV ($34), a small gizmo that glows and flashes like the flicker of a television set. FakeTV uses the same energy as a nightlight, and has a built-in light sensor and timer, which turns it on at dusk and off when you wish.

3. Slippery When Wet

In the U.K., they slather "anti-climb" paint, which never dries, on downspouts, gutters, and anything they don't want an intruder to shimmy up. It doesn't seem to be available in the U.S. yet. But it's a wild idea.

4. Footsteps in the Snow

Virgin snow is a sure sign that no one's home. If you're away after a snowstorm, ask a neighbor's kid to tromp around your yard, creating footprints that will fool a burglar into thinking you're around but just haven't gotten around to shoveling your snow yet.

5. Parked Car

Also, ask a neighbor to occasionally park their car in front of your house, making it look like you're entertaining visitors. And ask them to remove any fliers that may be wedged into your door or mailbox. Burglars sometimes case a home by planting a flier and checking to see if someone retrieves it.

Proposed Routes for the new Illiana Expressway

Proposed routes for the Illiana Expressway connecting Interstates I-55 and I-57 with I-65:

 

http://www.arcgis.com/apps/OnePane/basicviewer/index.html?appid=cd46d7351179458ebd20f4b4e5ce1538

We are about half way through 2012. How is the market doing compared to last year?
Based on our personal sales, Illinois & Indiana included, our sales are up 35%.
We feel our increase in sales is due to our thorough marketing on the Internet.
90% of the buyers look for homes on the Internet. With our variety of features such as Picture slide shows, Virtual tours, Video tours & interactive maps, statistics show our listings are getting more views. More views lead to increased sales. Plus, Coldwell banker spends big dollars to ensure your home is on every single major home search site, with all of our listings at the top of all search lists.

The seasonal slowdown occuring right at schools end has kicked in. We are expecting sales to increase significantly after the July 4th holiday. Last year, after the holiday, sales surged!

Based on data from the Multiple Listing Services, almost all towns In Illinois & Indiana, just West & East of the border experienced increased sales in 2012 compared to the same dates in 2011. But, all these Towns in Illinois have shown average Sales prices down. Remember, this includes foreclosures, so exact decreases are hard to measure.
Most towns in Indiana showed increases in Home prices in 2012 compared to 2011.
Just for comparison, Orland Park sales were also up, but average home prices were also down.   Orland park is always on the list of popular towns to live in.

With the economy improving, gas prices & interest rates low, and buyers wanting to buy homes at great prices, there is every reason to believe that Home sales will continue to increase.           Hopefully in the near future, this demand will not only cause a rise in home sales, but also a rise in Home values!