secondary income - recycling

okay, welcome to a new series dedicated to saving more money:  secondary income.  if you're trying to save a lot of money in a short period of time, you can't just do it by penny pinching and making sacrifices.  you'll find it'll do you much more good to go after secondary income.  it's very important to find places to make money other than your job.

recycling is probably the easiest way to make a little money on the side.  it doesn't require much effort or investment.  there is a slight time investment, if you have to wait in line to recycle.  the rest is just taking back the money you paid at the register.  you won't save a lot money doing this, but putting away an extra fifty bucks a month definitely does not hurt.  it's just one more way to build up to that down payment goal.  it goes along way towards the attitude that you need to have, save every penny you can and you just might get there in time.

ten months to go here.

buying new - the cons

so, what's wrong with buying a new home?  most of it has to do with money, or what your money can get you.  if you want to buy new, you're probably going to be paying a lot more than if you bought used.  and we're not just talking the cost of the home.  new communities tend to have much higher h.o.a. dues.  one cost most people forget about when buying new is the landscaping.  unless you're buying a condo where the landscaping is covered by the h.o.a., you're going to be paying a lot of cash to landscape your new property.  and it's not something you can avoid; most h.o.a.'s require your property be properly landscaped and maintained.  landscaping is a large expense a lot of people don't think of, not to mention the irrigation to keep it alive.  another downside to buying new is that pretty much everyone in the neighborhood will have the same home as you; no character.  all of your character will have to be on the inside, because your brand new home is a cookie cutter cut out.  and your cookie cutter house will be sitting on a small lot.  developers are not generous with their valuable land.  they want to squeeze as many homes as possible into what they've invested.  unless you're buying into horse property, don't expect to have a large yard.  large yards will come at a premium, which brings us back to more money.  the last downside deals with location.  if you won't want to live in the sticks, a new home close to the city is going to obviously cost a lot more than an old home.  for example:  in socal, you buy an amazing home for an amazing price if you buy in b.f.e., "beyond f-ing east", but you will be driving an hour to work, school, or any of the cool places to be in socal.  just know what you're buying in to and what you can afford.  happy house hunting.

buying new - the pros

there is nothing like buying a new home, or so i'm told.  we still haven't gotten there.  but i imagine it's a lot like buying a new car.  once you do, you just never want to buy used again.  so, what are the advantages of buying a new home?  first of all, it's new!  you get to start from scratch in a newly constructed home.  and you are it's only owner and occupant.  no one else's memories are in that home, except your own.  everything should be in proper working order, with no part of the house falling apart or on it's way to rundown.  there is nothing to worry about.  if you are lucky enough to buy a new home now, you will also have the latest in green and energy efficient technology, which means lower utility bills.  most of the time, you will also be moving into a new neighborhood.  all of your neighboors are in the same boat as you, buying new and starting from scratch.  it's a great feeling.  most new neighboorhoods have master planned communities, with parks, pools, and club houses for you to take advantage of and enjoy.  hopefully, you bought the home the way you wanted it, so there will be no updating or upgrading.  if you bought in without some of the upper end stuff to save money, then you will have some future little projects, which can be fun.  also, buying new, usually means no landscapping.  you get to start from scratch there too and create exactly what you want.  new construction also means new architechture and design:  open floor plans, walk-in closets, highly functional kitchens, modern bathrooms, great rooms, lofts, all the bells and whistles.  of course, this all depends on the developer and what you can afford, but you'll find even the most affordable plans will have all the modern touches to keep you in the here and now for awhile.

buying used - the cons

so, what are the downsides to buying a used home?  it's old.  and that could bring a lot of headaches.  for example:  how old is the roof?  does it need to be replaced soon?  how much will it cost me?  these problems can stretch out to everything in the house:  paint, flooring, appliances, landscaping, insulation.  if there were any additions or construction done on the home, were there permits for the work?  every used home will be different from the next, because they all had different owners, who, most likely, took varying levels of care with their home.  with each home, you just have to know what to look for and what questions to ask.  you will always want to get a home inspection before signing on the dotted line.  so, what are some other downsides?  it's not new, meaning the house has been lived in and is filled with someone else's memories.  it could take a long time and maybe a lot of changes to the home before it feels like your own.  this all depends on you, the buyer.  for some, it isn't a big deal.  for others, it could take some time before their 'new' home feels like their very own.  another downfall could be energy efficiency.  older homes are nowhere near as energy efficient or "green" as new homes are, so you'll be paying more in utilities.  always find out if the windows are newer and if the furnace and other appliances have been replaced in recent years with energy efficient ones.  lastly, and you'll hear this word a lot, older homes are "dated".  their style is dead.  from the architecture, to the floor plans, to the kitchens and bathrooms, it's all out of date.  maybe homeowners updated some things or even everything, but something, somewhere is going to just look and feel old.  the question is, can you deal with that?  maybe you can and you'll find buying used is for you.  we're still trying to figure that out for ourselves.

coming soon, the pros and cons of buying new.

buying used - the pros

my next few posts will be about the pros and cons of buying new versus old, as i see it.

why should i buy used?  the biggest value in buying a used home is character.  older homes are a lot different than they are now today, less cookie cutter to be exact.  if you buy a home from the 60's and on, you're still going to get cookie cutter neighborhoods, but over time, those home have transformed a lot, so yeah, definitely less cookie cutter.  you buy older than 60's, who knows what you are going to get.  older homes also cost less money, in general.  that will leave you extra money to do what?  remodel your dated home.  this may not be for everyone, but for creative people who want an original home, that they can make their own, buying an old, outdated home can be a project that brings them joy for many years to come.  plus, you can add value to the home by doing this.  another benefit of buying used could be lower h.o.a. fees.  older homes also tend to sit on larger lot sizes.  back in the day, developers didn't try to pack every house they could into a neighborhood.  more land means more possibilities, such as a place to park a boat or r.v., room for a playground, or even a pool!  there are endless possibilities on bigger lot properties.  one more thing about older h.o.a.'s, they tend to be more leniant on the rules of the neighboorhood, such as paint colors and where you can put a satellite dish.  if you buy old enough, you might not even have an h.o.a. to deal with, which is money saved and less headaches.  when searching for an older home to buy, you will find that the pros and cons of buying used will change with each property.  why?  because each one is unique and has character!  it's the best thing about buying used.

verbiage - mortgage insurance

what is mortgage insurance?  it gets very complicated when figuring out how much mortgage insurance you will be paying, if you need it.  i'm no expert, so i'll just explain the basic principal and when you actually apply for a loan, you can let your expert lender explain the details.  basically, mortgage insurance protects your lender in case you default on your home loan.  when you buy a house, you almost always pay a down payment.  if your down payment is less than 20% of the purchase price of the home, you will be most likely have to pay mortgage insurance.  i have seen the mark advertised at 15% or less, but i can't remember where.  there are many types of loans out there and they all have different rules.  either way, plan on paying a couple hundred dollars a month on mortgage insurance, unless you have a hefty down payment.

checking out new homes

when i was a child, one of my favorite things to do with my mom was check out new homes.  she loved to do it.  we were never planning on moving, she just liked to dream a little and check out what was new and upcoming.  for a future home buyer, this is a really fun activity.  my girlfriend and i are doing it today.  we're going to check out two builders.  now, even if you are not going to buy a new home, this is still a great activity.  you get to check out brand new homes and see what you like.  if you are planning to buy an older home and remodel it, this will give you all sorts of ideas on what you can do.  checking out new homes also is a good way to keep yourself motivated.  it makes you want to save more.  and it's easy!  most builders don't require an appointment, just stop buy and check out what they are offering.  there will be blogs later on, going over the pros and cons of buying new versus old and vice versa.  if you are planning to buy new, but not for a year, like us, this is still a great activity.  the development you check out might be sold out by the time you are ready to buy, however, you will get a good idea of the style that builder is bringing to the table.  check out several different builders, take notes and pictures and save them somewhere.  then, when you are ready to buy, you can bust them out and see which builder you want to buy from the most.  hopefully, they'll have a brand new development where you want to buy!  a lot of builders have this kind of service on their websites to, which makes it easy to follow what the builder is doing in your region.  when viewing new homes, make sure you ask about the build out date, to get a better idea if it's a community you might still have a chance to buy in, in the future.  other important questions to ask:

ask for approximate property tax rates and mell roos
ask about h.o.a. fees or dues
ask what h.o.a. fees cover
ask about customizability and upgrades
find out what is included with the home
ask about lenders and programs they have
and ask about incentives they offer

the most important thing to remember when looking at new homes, is to have fun and get inspired.

verbiage - mell roos

this entry applies to california home buyers.  what the hell is mell roos and what does it mean to me?  when the state of california passed proposition 13, it locked in property tax levies, meaning cities could not increase the property taxes to help pay for all the great things that make up the great cities of california.  cities cost money; building them up and out and maintaining them cost a lot of money.  we also have to pay the people who run them.  apparently that huge chunk of change they charge you for owning a home, around 1%  of your estimated property value or more, depending on where you live, is not enough to pay for everything.  along come two lawyers named mell and roos(i'm guessing their last names) who get legislature passed so that cities can charge you these fees to pay for new stuff your city needs.  these fees took on the names of the lawyers who somehow got it to be legal for cities to charge you more property taxes, about another 1% of your estimated property value, depending on where you live:  mell roos!  okay, i'm not sure how they made it legal, but it is legit and it's kind of lame if you ask me.  it's another huge cost added on to the already huge cost of owning a home.  but, and this is a big but, not all cities charge mell roos!  so, if you're buying a home in california, try and find a city that does not charge mell roos.  obviously, this really shouldn't be a guiding star for you when deciding where to live, but it's something to consider.  for example, anaheim does not charge mell roos, but orange does.  two cities next to each other and one does not charge mell roos?  i think i'll attempt to buy in the one that does not have mell roos.  now, not a lot of cities in california are surviving without mell roos, so odds are, you're going to pay them.  you can probably search the net to find out which cities are not charging them, but i don't have that info currently.  most new communities will advertise that there are no mell roos when buying into their community, so if you see that, breathe a sigh of relief.  if not, just make sure you keep the cost in mind when deciding how much you can afford to take on.  basically, mell roos doubles your property tax.  just accept it or don't buy in california.

searching this blog

this is a blog, a free one, so features aren't the greatest for people looking for specific information.  the best way to search this blog, will be to look at the titles.  if you try and read it from beginning to end, you will find that it is not in a linear time frame.  so, if you're looking for specific info, just read the titles.